Document:

Exhibit 10.16(b)

ASSET
PURCHASE AGREEMENT

by and among

VALUED SERVICES
ACQUISITIONS COMPANY, LLC

and

FIRST AMERICAN
SERVICES OF WEST VIRGINIA, LLC,

FIRST AMERICAN
SERVICES OF KENTUCKY, LLC,

AND

THE
MEMBER GUARANTORS A PARTY HERETO

As of April 9, 2004

 

  

TABLE OF CONTENTS

	
  

  	
   

  	
   

  
	
  ARTICLE 1 PURCHASE AND SALE
  OF ASSETS

  	
   

  	
  1

  
	
  1.1

  	
   

  	
  Purchase of Assets

  	
   

  	
  1

  
	
  1.2

  	
   

  	
  Excluded Assets

  	
   

  	
  2

  
	
  1.3

  	
   

  	
  Assumed Liabilities

  	
   

  	
  3

  
	
  1.4

  	
   

  	
  Excluded Liabilities

  	
   

  	
  3

  
	
  1.5

  	
   

  	
  Closing

  	
   

  	
  4

  
	
  1.6

  	
   

  	
  Purchase Price

  	
   

  	
  4

  
	
  1.7

  	
   

  	
  Adjustments to Purchase
  Price

  	
   

  	
  4

  
	
  1.8

  	
   

  	
  Payment
  of Purchase Price

  	
   

  	
  6

  
	
  1.9

  	
   

  	
  Contracts Not Transferable

  	
   

  	
  7

  
	
  ARTICLE
  2 INDIVIDUAL REPRESENTATIONS AND WARRANTIES OF THE MEMBER GUARANTORS

  	
   

  	
  7

  
	
  2.1

  	
   

  	
  Organization and Good
  Standing

  	
   

  	
  7

  
	
  2.2

  	
   

  	
  Power and Authority

  	
   

  	
  7

  
	
  2.3

  	
   

  	
  Due Execution; Binding
  Effect

  	
   

  	
  7

  
	
  2.4

  	
   

  	
  No Violation; Consents

  	
   

  	
  7

  
	
  2.5

  	
   

  	
  No Amounts Owed to
  Member Guarantors

  	
   

  	
  8

  
	
  ARTICLE
  3 REPRESENTATIONS AND WARRANTIES OF THE SELLERS

  	
   

  	
  8

  
	
  3.1

  	
   

  	
  Organization and Good Standing

  	
   

  	
  8

  
	
  3.2

  	
   

  	
  Power and Authority

  	
   

  	
  8

  
	
  3.3

  	
   

  	
  Due Execution; Binding Effect

  	
   

  	
  8

  
	
  3.4

  	
   

  	
  No Violation; Consents

  	
   

  	
  9

  
	
  3.5

  	
   

  	
  Subsidiaries

  	
   

  	
  9

  
	
  3.6

  	
   

  	
  Financial Statements

  	
   

  	
  9

  
	
  3.7

  	
   

  	
  No Undisclosed Liabilities

  	
   

  	
  10

  
	
  3.8

  	
   

  	
  Real Property

  	
   

  	
  10

  
	
  3.9

  	
   

  	
  Title to Assets

  	
   

  	
  10

  
	
  3.10

  	
   

  	
  Intellectual
  Property

  	
   

  	
  11

  
	
  3.11

  	
   

  	
  Notes and Receivables

  	
   

  	
  12

  
	
  3.12

  	
   

  	
  Contracts and Commitments

  	
   

  	
  13

  
	
  3.13

  	
   

  	
  Ordinary Course of Business

  	
   

  	
  14

  
	
  3.14

  	
   

  	
  Litigation

  	
   

  	
  15

  
	
  3.15

  	
   

  	
  Compliance with Laws; Federal
  Regulations

  	
   

  	
  15

  
	
  3.16

  	
   

  	
  Permits and Licenses

  	
   

  	
  16

  
	
  3.17

  	
   

  	
  Taxes

  	
   

  	
  16

  
	
  3.18

  	
   

  	
  Insurance

  	
   

  	
  18

  
	
  3.19

  	
   

  	
  Environmental

  	
   

  	
  18

  
	
  3.20

  	
   

  	
  Employee Benefits

  	
   

  	
  19

  
	
  3.21

  	
   

  	
  Labor Matters

  	
   

  	
  20

  
	
  3.22

  	
   

  	
  Insolvency
  Proceedings

  	
   

  	
  21

  
	
  3.23

  	
   

  	
  Practices

  	
   

  	
  22

  
	
  3.24

  	
   

  	
  Related Party Transactions

  	
   

  	
  22

  
	
  3.25

  	
   

  	
  Accuracy
  of Information

  	
   

  	
  22

  
	
  3.26

  	
   

  	
  No
  Additional Representations and Warranties

  	
   

  	
  23

  
	
  ARTICLE
  4 REPRESENTATIONS AND WARRANTIES OF PURCHASER

  	
   

  	
  23

  
	
  4.1

  	
   

  	
  Organization and Good Standing

  	
   

  	
  23

  

 i
 

 

	
  4.2

  	
   

  	
  Power and Authority

  	
   

  	
  23

  
	
  4.3

  	
   

  	
  Due Execution; Binding Effect

  	
   

  	
  24

  
	
  4.4

  	
   

  	
  No Violation; Consents

  	
   

  	
  24

  
	
  4.5

  	
   

  	
  Litigation

  	
   

  	
  24

  
	
  4.6

  	
   

  	
  Financing

  	
   

  	
  24

  
	
  ARTICLE
  5 COVENANTS OF THE SELLERS

  	
   

  	
  25

  
	
  5.1

  	
   

  	
  Conduct of the
  Business Pending Closing

  	
   

  	
  25

  
	
  5.2

  	
   

  	
  Access to Sellers

  	
   

  	
  26

  
	
  5.3

  	
   

  	
  Reasonable
  Efforts; Regulatory Applications

  	
   

  	
  26

  
	
  5.4

  	
   

  	
  Notice of Changes

  	
   

  	
  27

  
	
  5.5

  	
   

  	
  No Solicitation of
  Transactions

  	
   

  	
  27

  
	
  5.6

  	
   

  	
  Final Financial Statements

  	
   

  	
  27

  
	
  5.7

  	
   

  	
  Liens
  on Acquired Assets

  	
   

  	
  28

  
	
  5.8

  	
   

  	
  Notice of Adverse
  Occurrences

  	
   

  	
  28

  
	
  5.9

  	
   

  	
  Notice of Continued
  Employment

  	
   

  	
  28

  
	
  ARTICLE
  6 CONDITIONS TO OBLIGATIONS OF PURCHASER

  	
   

  	
  28

  
	
  6.1

  	
   

  	
  Representations and
  Warranties

  	
   

  	
  28

  
	
  6.2

  	
   

  	
  Performance of Agreements

  	
   

  	
  28

  
	
  6.3

  	
   

  	
  No Injunctions

  	
   

  	
  28

  
	
  6.4

  	
   

  	
  Governmental
  Consents and Approvals

  	
   

  	
  28

  
	
  6.5

  	
   

  	
  Third Party
  Consents and Approvals

  	
   

  	
  29

  
	
  6.6

  	
   

  	
  No Material Adverse
  Effect

  	
   

  	
  29

  
	
  6.7

  	
   

  	
  Financing

  	
   

  	
  29

  
	
  6.8

  	
   

  	
  Due Diligence

  	
   

  	
  29

  
	
  6.9

  	
   

  	
  Deliveries
  of Sellers

  	
   

  	
  29

  
	
  6.10

  	
   

  	
  Escrow Agreement

  	
   

  	
  30

  
	
  6.11

  	
   

  	
  Transferred
  Employees

  	
   

  	
  30

  
	
  6.12

  	
   

  	
  Bank Accounts
  and Bank Agreements

  	
   

  	
  30

  
	
  6.13

  	
   

  	
  Related Agreements

  	
   

  	
  30

  
	
  ARTICLE
  7 CONDITIONS TO OBLIGATIONS OF THE SELLERS

  	
   

  	
  30

  
	
  7.1

  	
   

  	
  Representations
  and Warranties

  	
   

  	
  30

  
	
  7.2

  	
   

  	
  Performance of
  Agreements

  	
   

  	
  30

  
	
  7.3

  	
   

  	
  No Injunctions

  	
   

  	
  31

  
	
  7.4

  	
   

  	
  Governmental
  Consents and Approvals

  	
   

  	
  31

  
	
  7.5

  	
   

  	
  Deliveries
  of Purchaser

  	
   

  	
  31

  
	
  7.6

  	
   

  	
  Escrow
  Agreement

  	
   

  	
  31

  
	
  7.7

  	
   

  	
  Third Party
  Consents and Approvals

  	
   

  	
  31

  
	
  7.8

  	
   

  	
  Related Agreements

  	
   

  	
  31

  
	
  ARTICLE 8 TERMINATION

  	
   

  	
  31

  
	
  8.1

  	
   

  	
  Termination

  	
   

  	
  31

  
	
  8.2

  	
   

  	
  Effect of Termination

  	
   

  	
  32

  
	
  8.3

  	
   

  	
  Survival of
  Certain Provisions

  	
   

  	
  33

  
	
  ARTICLE 9
  OTHER AGREEMENTS OF THE PARTIES

  	
   

  	
  33

  
	
  9.1

  	
   

  	
  Reasonable Efforts

  	
   

  	
  33

  
	
  9.2

  	
   

  	
  Brokers; Expenses

  	
   

  	
  33

  
	
  9.3

  	
   

  	
  Publicity

  	
   

  	
  33

  
	
  9.4

  	
   

  	
  Special
  Tax Provisions

  	
   

  	
  33

  

 ii
 

 

	
  9.5

  	
   

  	
  Employee Matters

  	
   

  	
  34

  
	
  9.6

  	
   

  	
  Seller
  Representative

  	
   

  	
  35

  
	
  9.7

  	
   

  	
  Non-Competition
  and Non-Solicitation

  	
   

  	
  36

  
	
  9.8

  	
   

  	
  WARN Act

  	
   

  	
  38

  
	
  9.9

  	
   

  	
  Access
  to Information

  	
   

  	
  38

  
	
  9.10

  	
   

  	
  Purchaser

  	
   

  	
  38

  
	
  9.11

  	
   

  	
  Renewal or
  Extension of Lease

  	
   

  	
  38

  
	
  ARTICLE 10 INDEMNIFICATION

  	
   

  	
  38

  
	
  10.1

  	
   

  	
  Indemnification
  by Sellers and Member Guarantors

  	
   

  	
  38

  
	
  10.2

  	
   

  	
  Indemnification by
  Purchaser

  	
   

  	
  39

  
	
  10.3

  	
   

  	
  Administration of
  Third Party Claims

  	
   

  	
  39

  
	
  10.4

  	
   

  	
  Limitations

  	
   

  	
  41

  
	
  10.5

  	
   

  	
  Rights Under
  Escrow Agreement

  	
   

  	
  42

  
	
  10.6

  	
   

  	
  Payments

  	
   

  	
  43

  
	
  10.7

  	
   

  	
  Exclusive Remedy

  	
   

  	
  43

  
	
  10.8

  	
   

  	
  Books and Records

  	
   

  	
  43

  
	
  10.9

  	
   

  	
  Tax
  and Insurance Benefit

  	
   

  	
  44

  
	
  10.10

  	
   

  	
  Limitation
  on Purchaser’s Liability

  	
   

  	
  44

  
	
  10.11

  	
   

  	
  Losses

  	
   

  	
  44

  
	
  ARTICLE 11 MISCELLANEOUS

  	
   

  	
  45

  
	
  11.1

  	
   

  	
  Notices

  	
   

  	
  45

  
	
  11.2

  	
   

  	
  Entire Agreement

  	
   

  	
  46

  
	
  11.3

  	
   

  	
  Waiver; Amendment

  	
   

  	
  46

  
	
  11.4

  	
   

  	
  Severability

  	
   

  	
  46

  
	
  11.5

  	
   

  	
  Governing Law

  	
   

  	
  46

  
	
  11.6

  	
   

  	
  Assignment

  	
   

  	
  46

  
	
  11.7

  	
   

  	
  Binding Effect

  	
   

  	
  46

  
	
  11.8

  	
   

  	
  Headings

  	
   

  	
  46

  
	
  11.9

  	
   

  	
  References within
  Agreement

  	
   

  	
  46

  
	
  11.10

  	
   

  	
  Interpretation

  	
   

  	
  46

  
	
  11.11

  	
   

  	
  Further Assurances

  	
   

  	
  46

  
	
  11.12

  	
   

  	
  Counterparts; Fax
  Signatures

  	
   

  	
  46

  
	
  11.13

  	
   

  	
  Knowledge

  	
   

  	
  47

  

 

 iii
 

DEFINITIONS

	
   TERM

   	
    

   	
    

   	
    

   	
   PAGES

   
	
  Acquired Assets

  	
   

  	
  1

  
	
  Actual Closing
  Working Capital Statement

  	
   

  	
  5

  
	
  Actual Working Capital

  	
   

  	
  5

  
	
  Adjusted
  Purchase Price

  	
   

  	
  5

  
	
  Adverse
  Occurrences

  	
   

  	
  22

  
	
  Agreement

  	
   

  	
  1

  
	
  Allocation
  Statement

  	
   

  	
  34

  
	
  Assumed
  Contracts

  	
   

  	
  2

  
	
  Assumed
  Liabilities

  	
   

  	
  3

  
	
  Audit Firm

  	
   

  	
  5

  
	
  Bank Agreements

  	
   

  	
  12

  
	
  Bank Model

  	
   

  	
  12

  
	
  Business

  	
   

  	
  1

  
	
  Business
  Employee Plans

  	
   

  	
  19

  
	
  Business
  ERISA Plan

  	
   

  	
  19

  
	
  Business
  Receivables

  	
   

  	
  13

  
	
  Closing

  	
   

  	
  4

  
	
  Closing Date

  	
   

  	
  4

  
	
  COBRA

  	
   

  	
  20

  
	
  Code

  	
   

  	
  19

  
	
  Current Assets

  	
   

  	
  5

  
	
  Current
  Liabilities

  	
   

  	
  5

  
	
  Disclosure Schedule Updates

  	
   

  	
  27

  
	
  Due
  Diligence Date

  	
   

  	
  29

  
	
  Employees

  	
   

  	
  20

  
	
  Environmental
  Action

  	
   

  	
  18

  
	
  Environmental
  Laws

  	
   

  	
  18

  
	
  ERISA

  	
   

  	
  19

  
	
  ERISA Affiliate

  	
   

  	
  19

  
	
  Escrow Agent

  	
   

  	
  6

  
	
  Escrow
  Agreement

  	
   

  	
  6

  
	
  Estimated
  Closing Working Capital Statement

  	
   

  	
  5

  
	
  Estimated Working Capital

  	
   

  	
  5

  
	
  Excluded
  Assets

  	
   

  	
  2

  
	
  Excluded
  Employees

  	
   

  	
  34

  
	
  Excluded Liabilities

  	
   

  	
  3

  
	
  Final Financial Statements

  	
   

  	
  27

  
	
  Final Working Capital
  Statement

  	
   

  	
  6

  
	
  Financing

  	
   

  	
  24

  
	
  First
  American Kentucky

  	
   

  	
  1

  
	
  First American West
  Virginia

  	
   

  	
  1

  
	
  GAAP

  	
   

  	
  4

  
	
  Hazardous
  Substances

  	
   

  	
  19

  
	
  HSR Act

  	
   

  	
  9

  
	
  Indemnified
  Party

  	
   

  	
  39

  
	
  Indemnifying
  Party

  	
   

  	
  39

  
	
  Industry

  	
   

  	
  10

  

 iv
 

 

	
  Initial Financial
  Statements

  	
   

  	
  9

  
	
  Intellectual Property

  	
   

  	
  11

  
	
  Knowledge

  	
   

  	
  47

  
	
  Latest
  Balance Sheet

  	
   

  	
  3

  
	
  Leased
  Personal Property

  	
   

  	
  10

  
	
  Leased
  Real Property

  	
   

  	
  10

  
	
  Leases

  	
   

  	
  10

  
	
  Licenses

  	
   

  	
  2

  
	
  Lien

  	
   

  	
  1

  
	
  Losses

  	
   

  	
  39

  
	
  Material
  Adverse Effect

  	
   

  	
  29

  
	
  Member
  Guarantors

  	
   

  	
  1

  
	
  Net
  Working Capital

  	
   

  	
  4

  
	
  Non-Competition Agreement

  	
   

  	
  30

  
	
  Objection

  	
   

  	
  5

  
	
  Parties

  	
   

  	
  1

  
	
  Party

  	
   

  	
  1

  
	
  Protective
  Covenants

  	
   

  	
  37

  
	
  Purchase Price

  	
   

  	
  4

  
	
  Purchaser

  	
   

  	
  1

  
	
  Purchaser Indemnified
  Parties

  	
   

  	
  39

  
	
  Real
  Property Leases

  	
   

  	
  10

  
	
  Records

  	
   

  	
  2

  
	
  Registered
  Intellectual Property

  	
   

  	
  12

  
	
  Release

  	
   

  	
  19

  
	
  Restricted
  Territory

  	
   

  	
  36

  
	
  Seller

  	
   

  	
  1

  
	
  Seller Indemnified Parties

  	
   

  	
  39

  
	
  Seller
  Representative

  	
   

  	
  35

  
	
  Sellers

  	
   

  	
  1

  
	
  Separate Purchase Agreement

  	
   

  	
  1

  
	
  Target Working Capital

  	
   

  	
  5

  
	
  Tax

  	
   

  	
  17

  
	
  Tax Return

  	
   

  	
  17

  
	
  Taxes

  	
   

  	
  16

  
	
  Termination
  Date

  	
   

  	
  32

  
	
  Transferred
  Employees

  	
   

  	
  34

  
	
  Utility
  Contracts

  	
   

  	
  14

  
	
  WARN

  	
   

  	
  21

  

 

 v

ASSET PURCHASE AGREEMENT

THIS ASSET
PURCHASE AGREEMENT (the “Agreement”)
is made and entered into as of the 9th day of April, 2004, by
and among (i) VALUED SERVICES ACQUISITIONS COMPANY, LLC, a Georgia limited
liability company  (“Purchaser”), and (ii) FIRST AMERICAN SERVICES OF
WEST VIRGINIA, LLC, a Kentucky limited liability company (“First American West
Virginia”), and FIRST AMERICAN SERVICES OF KENTUCKY, LLC, a
Kentucky limited liability company (“First American Kentucky”), and (iii) each of the
persons listed on Schedule 2 (the “Member Guarantors”).
Each of First American West Virginia and First American Kentucky are sometimes
hereinafter referred to collectively as “Sellers”
and individually as “Seller,”
and Purchaser, Sellers and Member Guarantors are sometimes hereinafter referred
to collectively as the “Parties”
and individually as a “Party.”

BACKGROUND:

A.    Sellers, including the sellers pursuant to the “Separate Purchase
Agreement” (as defined below), are engaged in the business of making short-term
consumer loans having a duration of less than two months and/or the marketing
and servicing of short-term consumer loans having a duration of less than two
months on behalf of a bank lender (collectively, the “Business”), in the states of Alabama, Arkansas,
Colorado, Florida, Georgia, Kentucky, North Carolina, Ohio, Oklahoma,
Tennessee, South Carolina and West Virginia.

B.     Subject to
the terms and conditions set forth in this Agreement, Sellers desire to sell to
Purchaser, and Purchaser desires to purchase from Sellers, substantially all of
the assets owned or used by Sellers in connection with the operation of the
Business.

C.     The
respective board of directors, board of managers or other applicable governing
body of each of the Sellers and Purchaser have approved this Agreement and the
transactions contemplated hereby.

D.    By the
required vote of all members or shareholders, as applicable, each Seller has
approved and voted in favor of this Agreement and the transactions contemplated
hereby in accordance with the respective Seller’s governing law.

E.     Contemporaneously with the execution of this Agreement,
Purchaser has entered into that certain Asset Purchase Agreement with First
American Holding, LLC, the other sellers a party thereto and the member
guarantors a party thereto (the “Separate Purchase Agreement”).

NOW, THEREFORE, FOR AND IN
CONSIDERATION of the premises, the mutual promises, covenants and agreements
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereby agree as
follows:

ARTICLE 1

PURCHASE AND SALE OF ASSETS

1.1   Purchase of Assets.   Upon the terms and subject to the conditions
set forth in this Agreement, at the “Closing” (as defined in Section 1.5)
and for the consideration specified in this Article 1, each Seller shall
sell, convey, transfer, assign and deliver to Purchaser, and Purchaser shall
purchase from each such Seller, all of the “Acquired Assets” (as hereinafter
defined), free and clear of any and all liens, charges, security interests,
mortgages, hypothecations, pledges, claims and encumbrances of any kind (each,
a “Lien”), other than (i) Liens
for Taxes not yet due or in default and payable without penalty and interest;
and (ii) Liens fully reflected or reserved against in the Final Working
Capital Statement (as defined in Section 1.7(e)). For purposes of this
Agreement, “Acquired Assets”
shall mean all of the assets, properties and rights owned or used by Sellers as
of the “Closing Date” (as defined in Section 1.5) in connection with 

 1
 

the operation of
the Business, other than the “Excluded Assets” (as defined in Section 1.2),
including, without limitation, the following:

(a)    cash in an
amount of approximately $37,500 in
the aggregate, with a range of  $150 to $10,000 as to each open store
location of Seller;

(b)   all
accounts receivable, notes receivable, refunds, deposits, prepaid expenses,
held checks and all claims against the payors of such checks and prepaid
security deposits;

(c)    all
machinery, equipment, office and computer equipment, modems, furniture,
fixtures and other tangible personal property;

(d)   to the extent assignable, all rights under all contracts, “Leases”
(as defined in Section 3.8), agreements, covenants, options, guaranties
and other similar arrangements related to the Business to which any Seller is a
party or to which any of its assets are subject, whether oral or written,
express or implied, including, without limitation, non-solicitation and
non-disclosure covenants in favor of Sellers (notwithstanding anything to the
contrary herein, no representation or warranty regarding such non-solicitation,
non-disclosure covenants, employment agreements or other matters referenced in
this clause is given in this Section 1.1(d)), but specifically excluding
the agreements set forth in Schedule 1.2(b) (all
of the foregoing being referred to collectively as the “Assumed Contracts”);

(e)    to the extent assignable (but Purchaser is aware that most, and
perhaps all of the following are not assignable), all licenses, approvals,
permits, registrations and other similar rights obtained from governmental
agencies or authorities (and all applications therefore) (collectively, the “Licenses”), but each Seller
and Member Guarantor shall have no liability of any nature whatsoever to
Purchaser or its assignees for the non-assignment of such Licenses or the
inability of the Purchaser or its affiliates to obtain comparable licenses;

(f)    all “Intellectual
Property” (as defined in Section 3.10(a));

(g)    all records, files, correspondence, data, plans, training
materials, marketing materials, recorded knowledge and information used in the
Business or required to continue the Business as it is currently being
conducted (collectively, the “Records”);

(h)   all claims,
refunds, causes of action, chooses-in-action, rights or recovery, rights of
set-off, charge-offs, and rights of recoupment related to the Business, whether
arising before or after the Closing Date;

(i)    all
goodwill associated with the Business; and

(j)     all other
tangible and intangible assets of any kind or description, wherever located,
that are owned or used by Sellers in connection with the operation of the
Business as of the Closing Date other than the Excluded Assets.

1.2   Excluded Assets.   Only
the following assets as of the Closing Date of Sellers (the “Excluded Assets”)
are being retained by Sellers and not sold to Purchaser, and are and shall be
free of any interest of Purchaser (other than with respect to claims made by
Purchaser pursuant to Article 10), pursuant to this Agreement:

(a)    any rights
relating to the “Excluded Liabilities” (as defined in Section 1.4);

(b)   all of
Sellers’ rights under the contracts, agreements, covenants, options, guaranties
and similar arrangements listed on Schedule 1.2(b),
including all non-competition and employment agreements between a Seller and
any employee of Sellers;

(c)    any
employee benefit plans and all assets, amendments, documents and financial
matters relating thereto or associated trusts maintained by Sellers;

 2
 

(d)   all cash
and cash equivalents in excess of the amounts set forth in Section 1.1(a);

(e)    all equity
interests in each of the Sellers, each Seller entity and the Adjusted Purchase
Price (as defined in Section 1.7(c)) and other consideration or items to
be received by the Sellers and Member Guarantors in connection with this
Agreement;

(f)    those
assets and properties listed on Schedule 1.2(f);
and

(g)    the
insurance policies of Sellers and the prepaid premiums under such policies.

1.3   Assumed
Liabilities.   It is understood and agreed that Purchaser shall not
assume or become liable for the payment of any debts, liabilities, losses,
charge-backs, accounts payable, bank indebtedness, mortgages, leases or other
obligations of Sellers, whether the same are known or unknown, now existing or
hereafter arising, of whatever nature or character, whether absolute or
contingent, liquidated or disputed, except for the following obligations set
forth in Section 1.3(a) and Section 1.3(b) (the “Assumed Liabilities”),
and Purchaser agrees that, at Closing, it shall assume, pay, perform and
discharge pursuant to the “Assumption Agreement” referred to in Section 7.5(c) the
Assumed Liabilities in accordance with their respective terms:

(a)    all “Current Liabilities” (as defined in Section 1.7(a)) of
Sellers relating to the Business (including all accounts payable but excluding
all Current Liabilities associated with the Excluded Assets), and incurred on
or prior to the Closing Date but (i) only to the extent that such
liabilities are reflected on such Seller’s consolidated balance sheet dated as
of February 29, 2004 and
delivered to Purchaser prior to the date of this Agreement (the “Latest Balance Sheet”);
or (ii) if such liabilities are incurred after the date of the Latest
Balance Sheet, only to the extent such liabilities are either (A) reflected
on the Final Working Capital Statement, (B) incurred as a result of the
conduct of the Business in the ordinary course and consistent with Sellers’
past practice, (C) consistent with amounts historically incurred by such
Seller, and (D)  incurred in compliance with the terms of this Agreement
or (X) not to the Knowledge of the Sellers known in time to be included in the
Final Working Capital Statement, (Y) incurred as a result of the conduct of the
Business in the ordinary course and consistent with Sellers’ past practice, and
(Z) incurred in compliance with the terms of this Agreement; and

(b)   all
liabilities and obligations arising on or after the Closing Date (but excluding
any liabilities or obligations arising from any acts or omissions of Sellers,
including, without limitation, any breach of contract, breach of warranty or
violation of laws, occurring prior to the Closing Date) under or pursuant to Assumed
Contracts, including but not limited to, all Leases and Licenses.

1.4   Excluded
Liabilities.   Notwithstanding anything else contained herein to the
contrary, all liabilities and obligations of Sellers (whether known or unknown,
liquidated or unliquidated, contingent or fixed) other than the Assumed
Liabilities (the “Excluded
Liabilities”), shall remain the liabilities and obligations of
Sellers, and shall not be assumed by Purchaser pursuant hereto (regardless of
whether any such liabilities or obligations are disclosed in this Agreement). Each
Seller hereby agrees that it shall fully and timely pay, perform and discharge
all of the Excluded Liabilities in accordance with their respective terms. Without
limiting the generality of the foregoing, Excluded Liabilities of Sellers
include the following:

(a)    any
liability or obligation of any Seller arising under any Assumed Contract,
Lease, License or other agreement as a result of any act or omission occurring
prior to the Closing Date;

(b)   any
liability or obligation related to the Excluded Assets;

(c)    any
liability or obligation for any Taxes owed by any Seller or arising in
connection with the consummation of this Agreement and the transactions
contemplated hereby, unless otherwise provided in this Agreement;

 3
 

(d)   any
liability or obligation of Sellers for costs and expenses incurred in
connection with this Agreement and the transactions contemplated hereby;

(e)    any
liability or obligation of Sellers under or in connection with any action,
suit, proceeding or investigation arising out of acts, omissions or events
occurring prior to the Closing Date, including, but not limited to, claims or
actions pursuant to any statutes and regulations with respect to short-term
loans, usury statutes, the Equal Credit Opportunity Act and Regulation B
promulgated thereunder, the federal Truth-in-Lending Act and Regulation Z
promulgated thereunder, the federal Fair Credit Reporting Act, the Federal
Trade Commission’s Rule on Credit Practices, and any other federal,
foreign, state or local statute, law, ruling, or ordinance; provided, however, that
all such actions, proceedings, suits, and investigations arising out of any
acts, omissions or events occurring on or after the Closing Date relating to
the Acquired Assets or the Business or any activity, form or aspect thereof
shall be the sole obligations of the Purchaser, except as set forth in Section 3.11(a)(ii);

(f)    any
liability or obligation of Sellers relating to any breach of contract, breach
of warranty, tort, infringement or violation of law arising out of acts,
omissions or events occurring prior to the Closing Date, except as set forth in
Schedule 1.4(f);

(g)    any
liability or obligation of Sellers to any employee as a result of this
transaction and any liability or obligation under or in connection with any
employee benefit plan, policy or practice, or any employment agreement,
collective bargaining agreement or severance agreement except as set forth in Schedule 1.4(g);

(h)   any
liability or obligation of Sellers to indemnify any person by reason of the
fact that such person was an employee, officer, director, manager or agent of
Sellers (or such person was serving in any such capacity of any other entity at
the request of any Seller) prior to the Closing Date; and

(i)    any liability
or obligation relating to any loan, line of credit, guaranty or other
indebtedness of Sellers not assumed by Purchaser pursuant to Section 1.3.

1.5   Closing.   The
transactions contemplated by this Agreement shall be consummated at a closing
(the “Closing”)
to be held at the offices of Greenebaum Doll & McDonald, PLLC, located
at 101 South Fifth Street, 3500 National City Tower, Louisville, Kentucky, at
10:00 a.m., local time, on (a) the second business day following the
last to be fulfilled or waived of the conditions set forth in Articles 6 and 7,
or (b) such other time, date or place as Purchaser and the “Seller
Representative” (as defined in Section 9.6) shall mutually agree to in
writing, but not later than the “Termination Date” (as defined in Section 8.1(e)).
The date on which the Closing occurs is hereinafter referred to as the “Closing Date.”

1.6   Purchase Price.   Upon
the terms and subject to the conditions set forth in this Agreement, Purchaser
shall pay a total purchase price for the Acquired Assets (the “Purchase Price”)
equal to $8,395,000, subject to
adjustment as set forth in Section 1.7 below and payable as set forth in Section 1.8
below, plus the assumption of the Assumed Liabilities.

1.7   Adjustments to Purchase
Price.

(a)    For
purposes of this Section 1.7,

(i)          the term “Net Working Capital” means (A) the aggregate amount
of the “Current Assets” (as hereinafter defined) of Sellers less (B) the “Current
Liabilities” (as hereinafter defined) of Sellers, both determined as of 11:59 p.m.,
Atlanta, Georgia time, on the Closing Date in accordance with United States of
America’s generally accepted accounting principles consistently applied (“GAAP”) and without giving effect to
the transactions contemplated by this Agreement;

 4
 

(ii)        the term “Current Assets” means those assets of the type listed on
Part I of Schedule 1.7;

(iii)       the term “Current Liabilities” means those liabilities of the type
list on Part II of Schedule 1.7
hereto; and

(iv)        the
term “Target Working Capital” means the Net
Working Capital of the Sellers in an amount equal to $385,000.

(b)   No more than ten days prior to the Closing Date, the “Seller
Representative,” as defined in Section 9.6, and the Purchaser shall
jointly prepare, or cause to be prepared, a statement (the “Estimated Closing Working
Capital Statement”), which shall set forth a good faith and
reasonable itemized calculation of the estimated Current Assets, Current
Liabilities and Net Working Capital (the “Estimated Working Capital”). At the Closing, if the
Estimated Working Capital is less than the Target Working Capital, then the
Purchase Price shall be decreased by the difference between the Estimated
Working Capital and the Target Working Capital. At the Closing, if the
Estimated Working Capital as reflected on the Estimated Closing Working Capital
Statement is greater than the Target Working Capital, then the Purchase Price
shall be increased by the difference between the Estimated Working Capital and
the Target Working Capital.

(c)    The Purchase Price, after giving effect to the adjustments
provided for in Section 1.7(b) shall be referred to herein as the “Adjusted Purchase Price.”

(d)   Within 60 days after the Closing Date, Purchaser shall prepare, or
cause to be prepared, and deliver to the Seller Representative a statement (the
“Actual
Closing Working Capital Statement”) which shall set forth an
itemized calculation of the Current Assets, the Current Liabilities and the
actual Net Working Capital (the “Actual Closing Working Capital”). The Actual Closing
Working Capital Statement shall be prepared in accordance with GAAP.

(e)    The Seller Representative and its accountants shall have 30 days
after its delivery to review the Actual Closing Working Capital Statement. The
Seller Representative shall have access to the work papers of Purchaser and its
accountants used in preparing the Actual Closing Working Capital Statement. If
Seller Representative determines that the Actual Closing Working Capital has
not been calculated in accordance with Section 1.7(a) above, the
Seller Representative shall inform Purchaser in writing (an “Objection”), setting forth a specific description of the
basis of the Objection and an Actual Closing Working Capital Statement
reflecting the adjustments to the amount of the Actual Closing Working Capital which
the Seller Representative believes should be made, which Objection must be
delivered to Purchaser on or before the last day of such 30 day period. Purchaser
and the Seller Representative shall then have 30 days to attempt in good faith
to reach an agreement with respect to any disputed matters in respect of the
Actual Closing Working Capital. In reviewing any Objection, Purchaser and its
accountants shall have reasonable access to the work papers of the Seller
Representative and its accountants. If Purchaser and the Seller Representative
are unable to resolve all of their disagreements with respect to the
determination of the foregoing items within said 30-day period, they
shall submit their respective prepared Actual Closing Working Capital Statement
to one of the “Big Four” accounting firms, or such other accounting firm, as
the Purchaser and Seller Representative shall agree, provided, that such
accounting firm has not provided any services to Sellers or Purchaser within
the last twenty-four months and does not anticipate providing such services to
Sellers or Purchaser in the next twelve months (the “Audit Firm”). The Audit Firm shall, acting as an expert
and not as an arbitrator, determine in accordance with this Agreement, and only
with respect to the remaining differences so submitted, whether and to what
extent, if any, the Actual Closing Working Capital Statement requires
adjustment. The Parties shall direct the Audit Firm to use all reasonable
efforts to render its determination within 30 days after such submission. The
Audit Firm’s determination regarding any such adjustment shall be conclusive
and binding upon Purchaser 

 5
 

and the
Sellers. The Party with the greatest difference between its calculated amount
and the adjusted amount finally determined by the Audit Firm shall solely bear
the fees and disbursements of the Audit Firm in rendering its determination. Purchaser
and the Seller Representative shall make readily available to the Audit Firm
all relevant books and records and any work papers (including those of the
Parties’ respective accountants) relating to the Actual Closing Working Capital
Statement and all other items reasonably requested by the Audit Firm. The “Final Working Capital
Statement” shall be deemed to be (i) the Actual Closing Working
Capital Statement if no Objection is delivered by during the 30 day period
specified above, or (ii) if an Objection is delivered by the Seller
Representative, the Actual Closing Working Capital Statement, as adjusted by
either (A) the agreement of the Parties or (B) the Audit Firm.

(f)    If the
Actual Closing Working Capital as reflected on the Final Working Capital
Statement is less than the Estimated Working Capital, then the difference
between such Actual Working Capital and the Estimated Working Capital, plus
interest at the prime rate (as set forth in the “Money Rates” section of The Wall Street Journal) on such amount from the Closing
Date through the date of payment, shall be paid by Sellers to Purchaser within
ten (10) days after the final determination of the Final Working Capital
Statement. If the Actual Working Capital as reflected on the Final Working
Capital Statement is greater than the Estimated Working Capital, then the
difference between such Actual Working Capital and the Estimated Working
Capital, plus interest at the prime rate (as set forth in the “Money Rates”
section of The Wall Street Journal) on such amount
from the Closing Date through the date of payment, shall be paid by Purchaser
to the Seller Representative, on behalf of each Seller, within ten (10) days
after the final determination of the Final Working Capital Statement. Purchaser
and Sellers hereby agree that any payment made pursuant to this paragraph (f) shall
be treated for “Tax” (as defined in Section 3.17(g)(i) purposes as a
decrease or increase, as the case may be, of the Adjusted Purchase Price.

(g)    Notwithstanding
Section 10.4(b), if it is determined that the Final Working Capital
Statement should have, in accordance with the terms of this Agreement, included
or excluded an amount(s) in such Final Working Capital Statement within two (2) years
following the Closing Date, then if the aggregate sum of such amounts is
greater than $3,750 then the full amount shall be paid to the appropriate
party.

1.8   Payment of Purchase Price.   At the Closing, Purchaser shall pay the Adjusted
Purchase Price in the following manner:

(a)    deposit in escrow with the Escrow Agent (“Escrow Agent”), which shall be either SunTrust Bank,
National City Bank, NA or BankOne, NA and as identified in the form of Escrow
Agreement to be mutually agreed to by the Parties (the “Escrow Agreement”),
$693,376,
with an amount to be disbursed to the Seller Representative 135 days after the
Closing Date such that $277,350 shall remain in escrow and disbursed to the
Seller Representative twenty-four months after the Closing Date, and in each
instance such disbursements shall be made in accordance with the terms and
conditions of the Escrow Agreement; provided, however, that to the extent a written claim which is permitted
by this Agreement has been made by Purchaser prior to such 135-day
period, the amount in question and set forth in such written claim shall not be
disbursed to the Seller Representative until finally resolved pursuant to the
terms of this Agreement;

(b)   pay or
cause to be paid to the Seller Representative, on behalf of each Seller (in
accordance with the amounts and percentages set forth on Schedule 2),
the aggregate amount of the Adjusted Purchase Price remaining after giving
effect to paragraph (a) of this Section 1.8.

 6
 

All amounts paid
pursuant to this Section 1.8 shall be via wire transfer of immediately
available Federal Reserve funds to an account to be designated in writing by
the Seller Representative.

1.9   Contracts Not Transferable.

Notwithstanding any
provision of this Agreement to the contrary, nothing in this Agreement shall be
deemed to constitute an agreement to transfer or assign any Assumed Contract if
an attempted transfer or assignment, without the consent of any person, entity
or governmental or regulatory authority, would constitute a breach thereof or
in any way adversely affect the rights of Purchaser or the Sellers thereunder. Each
Seller and Purchaser shall use its commercially reasonable efforts to obtain
any consents or waivers required to assign to Purchaser all rights, benefits
and interests under each Assumed Contract without any conditions to such
transfer or changes or modifications of the terms thereunder (including pricing
terms), or make available to Purchaser the practical benefit of any such
Assumed Contract) as permitted by the terms thereof, in a manner to permit the
Business to be conducted in all material respects as currently conducted
following the Closing; provided, however, that the assignment of any agreement may (but is
not required to) include a full or partial release of all obligations of the
Sellers from any such agreement.

ARTICLE
2

INDIVIDUAL REPRESENTATIONS AND WARRANTIES

OF THE MEMBER GUARANTORS

Each Member
Guarantor hereby severally as to itself only (based on and limited to such Member
Guarantor’s percentage listed in Schedule 2)
and not jointly,represents and
warrants to Purchaser that, as of the date of this Agreement and as of the
Closing Date:

2.1   Organization
and Good Standing.   If such
Member Guarantor is a corporation or limited liability company, as the case may
be, that it is duly incorporated, formed or organized, validly existing and in
good standing under the laws of the state of its incorporation, formation or
organization, as the case may be. Each such Member Guarantor which is a
corporation or limited liability company, as the case may be, has the necessary
corporate or limited liability company power and authority to carry on its
business as it is now being conducted.

2.2   Power and Authority.   Such
Member Guarantor has the requisite power and authority to enter into this
Agreement, to perform its obligations hereunder and to consummate the
transactions contemplated hereby.

2.3   Due
Execution; Binding Effect.   This
Agreement, and each other certificate, agreement, document or instrument to be
executed and delivered by such Member Guarantor in connection with the
transactions contemplated by this Agreement, has been or will be, as
applicable, duly and validly executed and delivered by such Member Guarantor
and, assuming the due authorization, execution and delivery hereof and thereof
by the other parties thereto, constitutes or will constitute, as applicable, a
legal, valid and binding obligation of such Member Guarantor, enforceable
against such Member Guarantor in accordance with its terms.

2.4   No
Violation; Consents.   Except for consents of, notices to, or filings with,
the Federal Trade Commission and the Department of Justice pursuant to the HSR
Act (as defined herein) and except as set forth in Schedule 3.4,
the execution, delivery and performance by such Member Guarantor of this
Agreement, and each other certificate, agreement, document or instrument to be
executed and delivered by such Member Guarantor in connection with the
transactions contemplated by this Agreement, the consummation of the
transactions contemplated hereby and thereby, and the fulfillment of and
compliance 

 7
 

with the terms and conditions hereof and thereof, do not and will not,
with or without the passing of time or the giving of notice, or both:

(a)    violate or
conflict with any provision of the organizational documents of such Member
Guarantor, as applicable;

(b)   breach or
otherwise constitute or give rise to a default under, result in the loss of any
benefit under or permit the acceleration of any obligation under any contract,
commitment or other obligation to or by which such Member Guarantor is a party
or is bound;

(c)    violate
any statute, ordinance, law, rule, regulation, judgment, order or decree of any
court or other governmental or regulatory authority to which such Member
Guarantor is subject; or

(d)   require any
consent, approval, order or authorization of, notice to, or filing, recording,
registration or qualification with any person, entity, court or governmental or
regulatory authority.

2.5   No
Amounts Owed to Member Guarantors.   No
Seller owes or is obligated to pay such Member Guarantor any amount, and such
Member Guarantor has no claim of any kind against any Seller or any affiliate,
employee, officer, director or manager of any Seller, in either case, for which
Purchaser shall become liable or for which the Acquired Assets will be subject
to any Lien.

ARTICLE
3

REPRESENTATIONS AND WARRANTIES OF THE SELLERS

Each of the
Sellers, jointly and severally, hereby represents and warrants to Purchaser
that as of the date of this Agreement and as of the Closing Date:

3.1   Organization and Good Standing.   Each Seller is a corporation or limited liability
company, as the case may be,  duly
incorporated, formed or organized, validly existing and in good standing under
the laws of the state of its incorporation, formation or organization, as the
case may be. Seller has the necessary corporate or limited liability company
power and authority to carry on its Business as it is now being conducted and
to own and lease the properties and assets it now owns and leases. Schedule 3.1 sets forth a true, correct and complete list of
all jurisdictions in which each Seller is operating its Business, and each
Seller is duly qualified or licensed to transact Business and is in good
standing as a foreign company in each jurisdiction where the character of its
activities requires such qualification.

3.2   Power and Authority.   Each Seller has the requisite power and authority to
enter into this Agreement and each other certificate, agreement, document or
instrument to be executed and delivered by it in connection with the
transactions contemplated by this Agreement, to perform its obligations
hereunder and thereunder and to consummate the transactions contemplated hereby
and thereby. The execution, delivery and performance by each Seller of this
Agreement and each other certificate, agreement, document or instrument to be
executed and delivered by it in connection with the transactions contemplated
by this Agreement, and the consummation of the transactions contemplated hereby
and thereby, have been duly authorized by all necessary corporate or other
action, and no other corporate or other proceedings on the part of any Seller
are necessary to authorize the execution, delivery and performance of this
Agreement and each other certificate, agreement, document or instrument to be
executed and delivered by it in connection with the transactions contemplated
by this Agreement.

3.3   Due Execution; Binding Effect.   This Agreement and each other certificate, agreement,
document or instrument to be executed and delivered by each Seller in
connection with the transactions contemplated by this Agreement, have been or
will be, as applicable, duly and validly executed and delivered by each Seller
and, assuming the due authorization, execution and delivery hereof and thereof
by each other party hereto and thereto, each constitutes or will constitute, as
applicable, a legal, valid and binding obligation of each Seller, enforceable
against each Seller in accordance with its terms.

 8
 

3.4   No Violation; Consents.   Except for consents of, notices to, or filings with,
the Federal Trade Commission and the Department of Justice pursuant to the
Hart-Scott-Rodino Antitrust and Improvement Act of 1976, as amended (the “HSR Act”), if any, and except as set
forth on Schedule 3.4, the execution, delivery
and performance by Sellers of this Agreement, and each other certificate,
agreement, document or instrument to be executed and delivered by it in
connection with the transactions contemplated by this Agreement, the
consummation of the transactions contemplated hereby and thereby, and the
fulfillment of and compliance with the terms and conditions hereof and thereof
do not and will not, with or without the passing of time or the giving of
notice, or both:

(a)    violate or
conflict with any provision of the Certificate of Formation, the Operating
Agreement or other organizational document, as the case may be, of any Seller;

(b)   breach or
otherwise constitute or give rise to a default under, result in the loss of any
benefit under or permit the acceleration of any obligation under any contract,
commitment or other obligation to or by which any Seller is a party or is
bound;

(c)    violate
any statute, ordinance, law, rule, regulation, judgment, order or decree of any
court or other governmental or regulatory authority to which any Seller is
subject; or

(d)   require any
consent, approval, order or authorization of, notice to, or filing, recording,
registration or qualification with any person, entity, court or governmental or
regulatory authority, other than “Leases” pursuant to the “Leased Real Property”
(as defined in Section 3.8) which require consent to assign.

3.5   Subsidiaries.

No Seller has any
subsidiaries other than the subsidiaries listed on Schedule 3.5.
Except for such subsidiaries listed on Schedule 3.5,
Seller (i) does not own or control any securities or own other investments
in any person or entity; and (ii) is not a participant in any joint
venture, partnership or similar arrangement.

3.6   Financial Statements.

(a)    Schedule 3.6(a) sets forth (i) the
unaudited financial statements of each Seller for the years ended December 31,
2001, 2002, and 2003, and (ii) the unaudited financial statements of each
Seller for the two month period ended February 29, 2004 (collectively, the
“Initial Financial
Statements”). Except as set forth in Schedule
3.6(b), the Initial Financial Statements were prepared in accordance
with GAAP, may be reconciled with the books and records of such Seller, and
fairly present in all material respects the financial condition of such Seller
as of the dates indicated therein and the results of operations of such Seller
for the periods covered thereby, subject to the lack of footnote disclosure and
changes resulting from normal year-end adjustments for the unaudited financial
statements, none
of which, in the aggregate, would reasonably be likely to have a Material
Adverse Effect. When delivered to Purchaser pursuant to Section 5.6,
the “Final Financial Statements” (as defined in Section 5.6) will have
been prepared in accordance with GAAP, will be reconcilable with the books and
records of such Seller and will fairly present in all material respects the
financial condition of such Seller as of the dates indicated therein and the
results of operations of such Seller for the period covered thereby.

(b)   Notwithstanding anything to the
contrary, Sellers and Member Guarantors shall not be liable to the Purchaser or
any other person, and Purchaser and its assignees shall have absolutely no
claims against Sellers or the Member Guarantors, for a breach of this Section 3.6
whether through Article 10 or otherwise, for the manner or year in which
Sellers have booked (or not booked, as the case may be) or reserved (or not
reserved, as the case may be) any liabilities or expenses relating to changes
in or new laws or interpretations of such laws (including, but not limited to,
statutes, ordinances, 

 9
 

regulations,
administrative proceedings, lawsuits, interpretations by any regulatory agency
or any similar actions causing such changes in laws, new laws or changes in
interpretations), judicial or administrative judgments including, but not
limited to, arbitration decisions, rulings, orders, any changes affecting the
industry of the Business in general (the “Industry”),
and the like, regardless whether pending as of the date of this Agreement or
arising after the date of this Agreement; provided, however, that this Section 3.6(b) shall not
relieve Sellers from disclosing to Purchaser the matters described in this Section 3.6(b) to
the extent required pursuant to Section 5.8.

3.7   No
Undisclosed Liabilities.   Except as set forth in Schedule 3.7,
Sellers do not have any indebtedness, liability, or obligation of any nature
that is required by GAAP to be reflected on a balance sheet except (a) those
reflected in the Latest Balance Sheet of such Seller, or (b) liabilities
incurred since the date of the Latest Balance Sheet in the ordinary course of
Business consistent with such Sellers’ past practices. Sellers do not have any
obligations (absolute or contingent) to provide funds on behalf of, or to
guarantee or assume any debt, liability or obligation of, any person or entity
that will be an Assumed Liability or result in a Lien on the Acquired Assets.

3.8   Real Property.   Seller
does not own any real property. Schedule 3.8(a) sets
forth a correct and complete list of the real property leased by each Seller
(the “Leased Real Property”),
and Seller has previously delivered (or will have delivered within 20 days
after the date of this Agreement) to Purchaser a true and complete copy of all
its real property leases and agreements in respect of the Leased Real Property
(collectively, the “Real
Property Leases,” and together with the leased personal
property, the “Leases”). Except
as set forth on Schedule 3.8(b), Seller holds an
unencumbered interest in the leasehold estate of all such Leased Real Property
and is not a party to any oral leases in respect thereof. None of such Leased
Real Property is carried as an asset on the books of Seller other than as
leasehold improvements. None of such Leased Real Property is subject to any
easement, right of way, grant, building or use restriction, exception,
reservation, limitation or other impediment, except as would not reasonably be
likely, in the aggregate, to have a Material Adverse Effect on the Business,
and the Sellers currently enjoy peaceful and undisturbed physical possession of
all such Leased Real Property. Except as set forth on Schedule
3.8(c), Seller does not use or have any interest in any real
property, other than the Leased Real Property. Except as set forth on Schedule 3.8(d), Seller is not in material violation of any
zoning, building or safety ordinance, regulation or requirement or other law or
regulation applicable to the operation of the Leased Real Property.

3.9   Title to Assets.

(a)    Except for the Leased Real Property, the leased tangible property
set forth on Schedule 3.9(a)(1) (the
“Leased Personal Property”),
and any licensed Intellectual Property, Seller owns all of the Acquired Assets,
free and clear of any and all Liens other than (i) Liens for Taxes not yet
due or in default and payable without penalty and interest; (ii) Liens
fully reflected or reserved against in the Latest Balance Sheet; and (iii) Liens
to be discharged by Seller on or prior to Closing (which are set forth on Schedule 3.9(a)(2)). There are no existing or proposed
agreements, options, commitments or rights with, of or to any person or
governmental authority to acquire or to condemn, expropriate or otherwise take
without payment any of the Acquired Assets or any interest therein, and all of
the tangible personal property included in the Acquired Assets are in good
repair and operating condition in all material respects (normal wear and tear
excepted). Seller has heretofore delivered (or will have delivered within 20
days after the date of this Agreement) to Purchaser a true and complete copy of
all Leases and agreements in respect of the Leased Personal Property, and,
except as set forth on Schedule 3.9(a)(3),
Seller holds an unencumbered interest in the leasehold estate of all such
Leased Personal Property and is not a party to any oral leases in respect
thereof. None of such Leased Personal Property is carried as an asset on the
books of Seller. None of the Acquired Assets are subject to any sublease,
license or grant of any rights thereto to any third party, other than as set
forth in Schedule 3.9(a)(4).

 10
 

(b)   Except as
set forth on Schedule 3.9(b), the Acquired
Assets constitute all assets and properties necessary to permit Sellers to
conduct the Business in accordance with such Seller’s past practices.

3.10   Intellectual Property.

(a)    Schedule 3.10(a) contains a correct and complete
description of all “Registered Intellectual Property” (as defined herein).

(b)   Schedule 3.10(b) contains a correct and complete
description of all “Intellectual Property” licensed to any Seller from a third
party or licensed by any Seller to a third party.

(c)    Except as
set forth on Schedule 3.10(c):

(i)          Seller owns good, valid, legal and beneficial title to, or,
with respect to Intellectual Property licensed to Seller, a valid right to use,
all of the Intellectual Property, free and clear of any and all Liens;

(ii)        No royalty, payment or other fee is
required to be paid by Seller to any individual, entity or governmental
authority in respect of the use of any of the Intellectual Property;

(iii)       Sellers have the exclusive right to their
use of all of the Intellectual Property owned by Sellers and have not granted
any license or other rights to any person or entity in respect of the
Intellectual Property;

(iv)        There are no restrictions on the ability
of Sellers (or any successor to or assignee from Seller) to use and exploit any
or all of Seller’s rights in the Intellectual Property owned by Seller;

(v)         To the Knowledge of Sellers, all statements contained in all
applications prepared by Seller for the registration of any Intellectual
Property were, are and will be, as the case may be, true, correct and complete;

(vi)        The current and past conduct of the
Business of Sellers and the use by Sellers of the Intellectual Property do not
infringe, and Sellers have not received, and, to Sellers’ Knowledge, no fact or
circumstance exists which could give rise to, any notice, demand, action,
proceeding, complaint, threat or claim alleging infringement of, any patent,
trademark, trade name, trade secret, obligation of confidence or other
proprietary, contract or intellectual property right of any individual, entity
or governmental authority;

(vii)      There is no claim or demand of any person
or entity pertaining to, or any proceeding which is pending or, to the
Knowledge of Sellers, threatened that challenges the rights of Sellers in
respect of any Intellectual Property and none of the Intellectual Property is
subject to any outstanding order, ruling, decree, judgment or stipulation by or
with any court, tribunal, arbitrator or governmental or regulatory authority;

(viii)     To Sellers’ Knowledge, none of the owned
Intellectual Property of such Sellers is being infringed by any other person or
entity; and

(ix)        Sellers are not in breach of any
agreement under which they acquire or have acquired any claim in any
Intellectual Property, and, to Sellers’ Knowledge, no party with whom Sellers
have an agreement relating to any Intellectual Property is in breach of such
agreement.

(d)   For
purposes of this Agreement, the following terms shall have the following
meanings:

(i)          “Intellectual Property”
means all intellectual property (other than off-the-shelf software that can be
transferred without the consent of any party), whether in existence or under 

 11
 

development, owned, held or used by Seller in the Business, including,
without limitation: (i) all inventions, improvements and discoveries,
whether or not reduced to practice and whether or not made the subject of a
pending patent application or applications; (ii) national, regional and
multinational statutory invention registrations, patents, patent registrations
and patent applications (including all reissues, division, continuations,
continuations in part, extensions, reexaminations and all foreign counterparts)
and all rights therein provided by international treaties or conventions and
any and all improvements or enhancements to the inventions disclosed in each
such registration, patent or application; (iii) all trademarks, service
marks, trade dress, get-up, logos, trade names, domain names and corporate
names, and all associated goodwill, whether or not registered, including all
rights under all trademark applications and all trademarks registered in the
trademark offices or authorities of all nations throughout the world, and all
rights therein provided by international treaties and conventions; (iv) all
copyrights (registered or otherwise) and all rights under any registrations and
applications for registration thereof, and all rights therein provided by
international treaties or conventions; (v) all computer hardware and
computer software, including source codes, interfaces, operating systems, file
and data models, specifications, data, databases, files, documentation and any
and all other materials related thereto, and all intellectual property rights
in and to any of the foregoing, including any copyrights; (vi) all
confidential information and trade secrets, including formulas, compositions
inventions and conceptions of inventions, whether patentable or unpatentable
and whether or not reduced to practice; (vii) all rights to obtain any
rights to apply for patents, and to register trademarks, industrial design and
copyrights or other intellectual property rights; (viii) all rights and
benefits under any license arrangements or agreements with any third parties
whether express, implied or by reason of conduct or nature of trade in respect
of any of the foregoing; and (ix) all rights whether arising at law, in
equity or by course of conduct, under any agreements under which Seller may
make any claim to any right, title or interest in any of the foregoing or
related possessory or other proprietary right of any individual, entity or
governmental authority.

(ii)        “Registered Intellectual Property” means all United
States, international and foreign (i) patents and patent applications
(including provisional applications); (ii) registered trademarks and
service marks, applications to register trademarks or service marks,
intent-to-use applications, other registrations or applications to trademarks
or service marks; (iii) registered copyrights and applications for
copyright registration; (iv) any mask work registrations and applications
to register mask works; and (v) any other Intellectual Property that is
the subject of an application, certificate, filing, registration or other
document issued by, filed with, or recorded by, any state, government or other
public legal authority to protect or perfect Seller’s rights in such
Intellectual Property other than filings to perfect Liens or other security
interests in such Intellectual Property.

3.11   Notes and Receivables.

(a)    (i)          Each
Seller has delivered to Purchaser complete and accurate information in all
material respects (either on computer disk or hard copy format) of all
receivables of Seller, including, without limitation, information with respect
to aging dated within ten (10) days of the date of the execution of this
Agreement. None of Sellers’ receivables have been written off by Sellers since
the Latest Balance Sheet, have been factored, pledged, turned over for
collection or assigned to any person or third party, other than in the ordinary
course of Sellers’ business consistent with past practices, and pledges of
receivables to Bank One, which shall be discharged by Sellers on or prior to
the Closing Date. Provided, however, all the promissory notes receivables
created under the bank model (the “Bank Model”)
created pursuant to the agreements described on Schedule
3.11(a) (the “Bank
Agreements”), are owned by Community State Bank, and not by
Sellers; provided, however,
that 

 12
 

any receivables that may have been assigned by
Community State Bank to the Sellers in accordance with the Bank Agreements will
be assigned to the Purchaser at the Closing.

(ii)        All receivables of Sellers resulting
from indebtedness of customers of Sellers (but not including the receivables
created under the Bank Model) included in the Acquired Assets (the “Business Receivables”)
are valid and at the time of their creation complied in all material respects
with all laws and regulations applicable thereto and pursuant to an agreement
that complied in all material respects with all laws and regulations. All
receivables created under the Bank Model have been created in accordance with
the Bank Agreements insofar as the acts of Sellers are concerned. None of Seller’s
Business Receivables are subject to any valid defenses, counterclaims or rights
of setoff (including defenses arising out of violations of usury laws), other
than (x) defenses arising out of applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors’ rights in general, and (y) the right of a customer to rescind an
agreement under applicable law. All Business Receivables of Seller were
originated in the ordinary course of business and were made pursuant to such
Seller’s standard customer agreement (other than the employee loans which have
been disclosed to the Purchaser), which agreements are legal, valid and binding
and enforceable against the account payor in accordance with their terms. Provided,
however, all of the provisions of this Section 3.11(a)(ii) shall be
deemed null and void ab initio with
respect to such Business Receivable on the earliest to occur of the date that
such Business Receivable is redeemed, paid off, renewed, rolled-over, replaced
or resolved pursuant to collection efforts or written off no later than ninety
(90) days after the due date of the particular Business Receivable; provided, further, that
any liability of Sellers to any account debtor or governmental agency or body
in connection with any Business Receivable shall remain the sole responsibility
of Sellers (or Community State Bank as to the business receivables at the date
of Closing it owns) unless such liability arises as a result of an action,
omission or event by the Purchaser after the Closing. All of the Business
Receivables will be assigned by Sellers to Purchaser at Closing without any
warranty of collectibility, but nevertheless such Business Receivables will be
subject to this Section 3.11(a)(ii).

(b)   Schedule 3.11(b) hereto
sets forth a correct and complete list of each note receivable, account
receivable and other receivable owned by or due to Seller, including any
reserves associated therewith, that individually is (i) over $15,000; or (ii) entered
outside of the ordinary course of such Seller’s Business consistent with its
past practices.

3.12   Contracts and Commitments.   Schedule 3.12(a) sets
forth a correct and complete list of all material contracts, agreements and
commitments that remain in effect or which the parties thereto continue to
operate under, including, without limitation, all of the following:

(a)    all
indentures, security agreements, and other agreements and instruments relating
to the borrowing of money by Seller or the creation of any Lien on the Acquired
Assets;

(b)   all form
agreements and form customer contracts that are currently in effect for
short-term consumer loans and all other customer agreements and contracts that
are currently in effect for  short-term
consumer loans not in accordance with any such form that are still open and not
charged off;

(c)    all
management agreements, consulting agreements, arrangements or agreements
related to temporary services of any kind that require payments, individually,
greater than $25,000 annually, and employment agreements;

(d)   all union
and other collective bargaining agreements;

(e)    all
agreements and licenses in respect of the Intellectual Property;

 13
 

(f)    all
current contracts or outstanding commitments relating to the sale by Seller of
any asset other than in the ordinary course of Business consistent with such
Seller’s past practices;

(g)    all
agreements for capital expenditures in excess of $25,000 for any single
project;

(h)   all joint
venture agreements;

(i)    all
agreements requiring the consent of any party thereto to the consummation of
the transactions contemplated by this Agreement;

(j)     all
Leases in respect of the Leased Real Property and the Leased Personal Property;

(k)   all
agreements prohibiting, partially restricting, or otherwise limiting the
ability of Sellers to compete, solicit customers or otherwise conduct any
business anywhere in the world; and

(l)    other than as addressed above and other than utility contracts (“Utility Contracts”),
all other agreements, contracts and commitments that involve payments of more
than $25,000 in any single year, or that are otherwise material to such Seller.

Except as set forth on Schedule
3.12(b), each contract, agreement or commitment listed on Schedule 3.12(a) was entered into in the ordinary
course of business consistent with such Seller’s past practices, is in full
force and effect, is valid and enforceable in accordance with its terms, and
constitutes a legal and binding obligation of Seller, and, to Seller’s
Knowledge, each other party thereto. Seller has neither given nor received, and
no fact or circumstance exists which could give rise to, any notice of default,
termination or partial termination under any contract or agreement listed on Schedule 3.12(a) and included in the Acquired Assets,
and there is no existing or continuing default by Seller or, to the Knowledge
of Seller, any other party in the performance or payment of any obligation
under any such contract or agreement, other than defaults by customers of a
Seller (and of Community State Bank) in the ordinary course of business, and
Sellers are in compliance in all material respects with the provisions of each
such contract or agreement. Sellers have previously delivered (or will have
delivered within 20 days after the date of this Agreement) to Purchaser a
correct and complete copy of each contract or agreement required to be listed
on Schedule 3.12(a).

3.13   Ordinary
Course of Business.   Except as set forth on Schedule
3.13, since December 31, 2003, each Seller has conducted its
Business in the ordinary course consistent with such Seller’s past practices,
and, without limiting the generality of the foregoing, since such date:

(a)    each
Seller has not suffered any Material Adverse Effect;

(b)   there has
been no destruction or loss of or to any of the Acquired Assets, whether or not
covered by insurance, or any deterioration in the condition of the Acquired
Assets, except in each case, as would not reasonably be likely, in the
aggregate, to have a Material Adverse Effect on Sellers other than charge-offs
of receivables in the ordinary course of business;

(c)    there has
been no sale, transfer or other disposition of any material assets, other than
in the ordinary course of Business consistent with such Seller’s past
practices;

(d)   the books,
accounts and records of Seller have been maintained in the usual, regular and
ordinary manner in accordance with GAAP;

(e)    there has
been no labor dispute, organizational effort by any union, unfair labor
practice charge or employment discrimination charge, nor institution or
threatened institution of any effort, complaint or other proceeding in
connection therewith, involving such Seller;

(f)    there has
been no amendment, termination or waiver of any right of Seller under any
contract or agreement material to Sellers or under any governmental license,
permit or authorization, other than in the ordinary course of Business
consistent with such Seller’s past practices;

 14

(g)    there has been no: (i) increase in the
compensation, distribution or in the rate of compensation, distribution or
commissions payable or to become payable by Sellers to any “Employees” (as
defined in Section 3.21(a)), salesman, independent contractors or agents
of Sellers, other than in the ordinary course of Business consistent with such
Seller’s past practices; (ii) increase in any payment of or commitment to
pay any distribution, bonus, profit sharing or other extraordinary compensation
to any Employee, salesman, independent contractor or agent of Seller, other
than in the ordinary course of Business consistent with such Seller’s past
practices; or (iii) grant or commitment to grant any increase in or right
to severance or termination pay or any other compensation, distribution or
benefits payable to any Employee upon a change of control of any Seller; provided, however, this
provision does not apply to any “Excluded Employees” (as defined in Section 9.5(a));

(h)   as of the date of this Agreement, there has
been no change in any law or regulation applicable to Seller in any
jurisdiction in which any Seller conducts its Business, except as would not, in
the aggregate, have a Material Adverse Effect;

(i)    there has been no Lien created on or in any
of the Acquired Assets or assumed by Seller with respect to any of the Acquired
Assets, other than in the ordinary course of Business consistent with such
Seller’s past practices;

(j)     there has been no creation of, amendment to
or contributions, grants, payments or accruals for or to the credit of any
employee of Sellers with respect to any bonus, incentive compensation, deferred
compensation, profit sharing, retirement, pension, group insurance or other
benefit plan, or any union, employment or consulting agreement or arrangement,
other than in the ordinary course of business consistent with such Seller’s
past practices; and

(k)   Sellers have neither made nor committed to
make any capital expenditures, other than in the ordinary course of business or
as contemplated by this Agreement.

3.14   Litigation.   Except as set forth on Schedule
3.14, there is no litigation, action, suit, arbitration, mediation,
hearing or governmental investigation pending or, to the Knowledge of Seller,
threatened against Seller (i) which affects the legality, validity or
enforceability of this Agreement or the transactions contemplated hereby or
which seeks to obtain damages or obtain relief as a result of the transactions
contemplated by this Agreement, or (ii) which would reasonably be likely
to have a Material Adverse Effect on Sellers or the Acquired Assets. No
judgment, award, order or decree has been rendered against Sellers which is
still outstanding. Except as set forth in Schedule 3.14,
there is no action or suit by Sellers pending or threatened against any other
party, including, without limitation, any action brought by Sellers to enforce
any non-competition agreement, other than collection actions by Sellers to
collect their (and Community State Bank’s) receivables in accordance with past
practices.

3.15   Compliance with Laws; Federal Regulations.

(a)    Except as set forth on Schedule
3.15(a), Sellers are in compliance with, and have in the past three
years complied, in all material respects, with all statutes, laws, rules,
regulations, orders, decrees and ordinances applicable to it or the operation
of its Business, including, without limitation, applicable local, state and
federal statutes and regulations with respect to short-term loans, usury
statutes, the Equal Credit Opportunity Act and Regulation B promulgated
thereunder, the federal Truth-in-Lending Act and Regulation Z promulgated
thereunder, the federal Fair Credit Reporting Act, the Federal Trade Commission’s
Rule on Credit Practices, and any statutes or regulations with respect to
the collection of debts, and Sellers have not received written notice of any
such violation; provided, however,
that other than as specifically provided in Section 3.11(a)(ii), the
Sellers and the Member Guarantors are not and shall not be responsible or
liable to Purchaser or its assignees (i) for the Purchaser’s or its
assignees’ operations of the Business on and after the Closing Date or (ii) for
a breach of this Section 3.15(a) as a result of changes in laws or
interpretations of such laws (including, 

 15
 

but not limited to,
statutes, ordinances, regulations, administrative proceedings, lawsuits,
interpretations by any regulatory agency or any similar actions causing such
changes in laws, new laws or changes in interpretations), judicial or
administrative judgments (including, but not limited to, threatened lawsuits
against other persons in the Industry), arbitration decisions, or rulings or
orders affecting the Industry in general, and the like, regardless whether
pending as of the date of this Agreement or arising after the date of this
Agreement; provided, however,
that this Section 3.15(a) shall not relieve the Sellers from
disclosing to the Purchaser those items which are required to be disclosed by
the Sellers to the Purchaser pursuant to Section 5.8. Except as set forth
on Schedule 3.14 or Schedule 3.15(a), no
Seller has been presently charged with nor has received, any written notice of
any adverse proceeding material to Sellers or the Business that remains
unresolved as of the date of this Agreement. Provided, however, that all
provisions of this Section 3.15(a), insofar as is applicable to Business
Receivables, shall be deemed null and void ab  initio with respect to each and every Business Receivable on
the earliest to occur of the date that such Business Receivable is redeemed,
paid off, renewed, rolled-over, replaced or resolved pursuant to collection
efforts or written off no later than ninety (90) days after the due date of the
particular Business Receivable; provided, further, that any liability to any account debtor or
governmental agency or body in connection with a Business Receivable remain the
sole responsibility of Sellers (or as to the receivables of Community State
Bank at the Closing shall be governed by the Bank Agreements).

(b)   Neither Sellers nor any of their subsidiaries
nor any person or entity controlling, controlled by or under common control
with Sellers or any of its subsidiaries is an “investment company” within the
meaning of the Investment Company Act of 1940, as amended. Neither Sellers nor
any of their subsidiaries is an “affiliated person” of, or “promoter” or “principal
underwriter” for, an “investment company,” as such terms are defined under the
Investment Company Act of 1940, as amended.

3.16   Permits and Licenses.   Except as set forth on Schedule
3.16(a) or as a result of changes in laws or
interpretations of such laws (including, but not limited to, statutes,
ordinances, regulations, administrative proceedings, lawsuits, interpretations
by any regulatory agency or any similar actions causing such changes in laws,
new laws or changes in interpretations), judicial or administrative judgments,
arbitration decisions, rulings, orders, any changes affecting the Industry in
general, and the like regardless whether pending as of the date of this Agreement
or arising after the date of this Agreement, each Seller (i) has all material licenses, permits, approvals and
authorizations required by federal, state and local governmental or regulatory
authorities which are necessary to conduct the Business in a manner consistent
with Seller’s past practices, to own or hold under lease the Acquired Assets it
owns or holds under lease and to perform all of its obligations under the
agreements to which it is a party, including without limitation, all licenses
and regulatory approvals relating to deferred presentment, deferred deposit,
and short-term and other loan transactions; and (ii) is in compliance with
all such licenses, permits, approvals and authorizations, except, in each case
as would not reasonably be likely to have, in the aggregate, a Material Adverse
Effect on any Seller or the Acquired Assets. Schedule
3.16(b) sets forth a correct and complete list of all such
licenses, permits, licenses, approvals and authorizations and to Sellers’
Knowledge, no suspension, cancellation or imposition of limitations of any of
them is threatened.

3.17   Taxes.   Except
as set forth on Schedule 3.17(a):

(a)    Sellers
have timely filed all “Tax Returns” (as hereinafter defined) that it was
required to file, all such Tax Returns were correct and complete in all
material respects, and all Taxes owed by Seller (whether or not shown on any
Tax Return) have been paid. Sellers are not currently the beneficiary of any
extension of time within which to file any Tax Return. To Sellers’ Knowledge,
no claim has ever been made by an authority in a jurisdiction where Sellers do
not file Tax Returns that they are or may be subject to taxation by that
jurisdiction. There are no Liens on any of the Acquired Assets of Sellers that
arose in connection with any failure (or alleged failure) to pay any Tax.

 16
 

(b)   Sellers
have accrued, withheld or paid to the applicable tax authority all Taxes
required to have been withheld and paid in connection with amounts paid or
owing to any employee, independent contractor, creditor, owner or other third
party, and all Form W-2 and 1099 required with respect thereto have
been properly completed and timely filed.

(c)    No officer
(or employee responsible for Tax matters) of Sellers expects any authority to
assess any additional Taxes for any period for which Tax Returns have been
filed. There is no ongoing audit or examination or, to the Sellers’ Knowledge,
other investigation by any governmental or regulatory authority of the Tax
liability of Seller, and there is no dispute or claim concerning any Tax
liability of Seller either (i) claimed or raised by any authority in
writing or (ii) as to which Sellers have Knowledge (or owners or employees
of Sellers responsible for Tax matters has knowledge) based upon personal contact
with any agent of such authority. Schedule 3.17(b) lists
all federal, state, local, and foreign income Tax Returns filed with respect to
Sellers for taxable periods ended on or after December 31, 2000, indicates
any Tax Returns since Seller’s formation that have been audited and indicates
any Tax Returns of Seller that currently are the subject of audit. Sellers have
delivered (or will have delivered within 20 days after the date of this
Agreement) to Purchaser correct and complete copies of all income Tax Returns,
examination reports, and statements of deficiency assessed against or agreed to
by such Sellers since December 31, 2000.

(d)   Sellers
have not waived any statute of limitations in respect of Taxes or agreed to any
extension of time with respect to a Tax assessment or deficiency.

(e)    The unpaid
Taxes of Sellers (A) did not, as of the most recent fiscal month end,
exceed the reserve for Tax liability (rather than any reserve for deferred
Taxes established to reflect timing differences between book and Tax income)
set forth on the face of the Latest Balance Sheet (rather than in any notes
thereto) and (B) do not exceed that reserve as adjusted for the passage of
time through the Closing Date in accordance with the past custom and practice
of Seller in filing its Tax Returns.

(f)    None of
the Assumed Liabilities is an obligation to make a payment that is not
deductible under Code Section 280G. Seller (i) has not been a member
of an affiliated group filing a consolidated federal income Tax Return or a member
of any group of entities filing a combined or consolidated Tax Return; (ii) has
never elected to be (or been) taxed as corporation for federal, state, local or
foreign tax purposes; and (iii) has no liability for the Taxes of any
individual or entity under Regulation § 1.1502-6 promulgated under
the Code (or any similar provision of state, local or foreign law), as a
transferee or successor, by contract, or otherwise.

(g)    For
purposes of this Agreement, the following terms shall have the following meanings:

(i)          “Tax”
or “Taxes”
means any federal, state, local, or foreign income, gross receipts, license,
payroll, employment, excise, severance, stamp, occupation, premium, windfall
profits, environmental (including Taxes under Code Section 59A), customs
duties, capital stock, franchise, profits, withholding, social security (or
similar), unemployment, disability, real property, personal property, sales,
use, transfer, registration, value added, alternative or add-on minimum,
estimated, or other tax of any kind whatsoever, whether computed on a separate
or consolidated, unitary or combined basis or in any other manner, including
any interest, penalty, or addition thereto, whether disputed or not and
including any obligation to indemnify or otherwise assume or succeed to the Tax
liability of any other person or entity.

(ii)        “Tax Return”
means any return, declaration, report, claim for refund, or information return
or statement relating to Taxes, including any schedule or attachment thereto,
and including any amendment thereof.

 17
 

3.18   Insurance.   Schedule 3.18
hereto contains a complete list and description (including the expiration date,
premium amount and coverage thereunder) of all policies of insurance and bonds
presently maintained by, or providing coverage for Sellers or any of its
officers, directors, managers or employees in their capacities as such,
together with a complete list of all material claims made within the last two (2) years
and all pending claims under any such policies or bonds, other than claims with
respect to health, medical and other similar insurance. Sellers have complied
in all material respects with all terms, obligations and provisions of each of
such policies and bonds and have paid all premiums due thereon, and no notice
of cancellation with respect thereto has been received by Sellers. To the
Knowledge of Sellers, no state of facts exists with respect to which Sellers
would file in the ordinary course of its Business consistent with such Seller’s
past practices, but has not filed, any material insurance claim.

3.19   Environmental.

(a)    Each of
Seller and each Seller’s leasehold interest in the Leased Real Property are and
have been in compliance in all material respects with all “Environmental Laws”
(as hereinafter defined);

(b)   To the
Knowledge of Sellers, there has been no “Release” (as hereinafter defined) by
any Seller at any of the Leased Real Property, or, to the Knowledge of Sellers,
at any disposal or treatment facility which received “Hazardous Substances” (as
hereinafter defined) generated by or from such Seller and/or the Leased Real
Property;

(c)    No “Environmental
Action” (as hereinafter defined) is pending, has been asserted against or, to
the Knowledge of Sellers, is threatened against any Seller;

(d)   To the
knowledge of Sellers, the Leased Real Property has not been used as a treatment
or disposal site for any Hazardous Substances during the period of Seller’s
operation thereof;

(e)    Each
Seller holds all licenses, permits and approvals required by that Seller by any
regulatory authority under any Environmental Laws in connection with the
operation of the Business;

(f)    With
respect to Sellers and the Leased Real Property, Sellers are not aware of and
have not received any written notification pursuant to any Environmental Laws
that (i) any work, repairs, corrective or remedial action, construction or
capital expenditures are required to be made as a condition of continued
compliance with any Environmental Laws or any license, permit or approval
issued pursuant thereto; (ii) any material license, permit or approval
under any Environmental Laws is about to be reviewed, made subject to
limitations or conditions, revoked, withdrawn or terminated; or (iii) any
events, conditions, circumstances, activities, practices, incidents, actions or
omissions may interfere with or prevent compliance or continued compliance with
any Environmental Law; and

(g)    Sellers
have previously delivered (or will have delivered within 20 days after the date
of this Agreement) to Purchaser a copy of all reports, assessments,
investigations, permits, correspondence and other documents and information
whatsoever which relate to the compliance status of such Seller or the Leased
Real Property under any Environmental Laws.

(h)   For the
purposes of this Section 3.19, the following terms shall have the
following meanings:

(i)          “Environmental Action” means any complaint, summons,
action, citation, notice, directive, order, claim, litigation, investigation,
request for information, judicial or administrative proceeding or action,
judgment, letter or other communication from any person or regulatory authority
involving or alleging violations of Environmental Laws or Releases or
threatened Releases of Hazardous Substances.

(ii)        “Environmental Laws” means all applicable federal, state
or local laws, statutes, ordinances, rules, regulations, orders, principles of
common law, judgments, decrees, permits, licenses or other binding
determinations of any regulatory authority, now or hereafter in effect, 

 18
 

imposing liability, establishing standards of conduct or otherwise
relating to pollution or protection of the environment (including, without
limitation, natural resources, surface water, groundwater, soils, and ambient
air), human health and safety, land use matters or the presence, use,
generation, treatment, storage, disposal, Release or threatened Release,
transport or handling of Hazardous Substances.

(iii)       “Hazardous Substances” means (a) any substance,
material, element, compound, waste or chemical, whether solid, liquid or
gaseous which is defined, listed or otherwise classified or regulated in any
way as a “contaminant,” “pollutant,” “toxic pollutant,” “toxic substance,” “hazardous
substance,” “hazardous waste,” “special waste,” or “solid waste” under any
Environmental Laws; (b) petroleum and its refined products; (c) polychlorinated
biphenyls; (d) radon; and (e) any raw materials, building components
(including, without limitation, asbestos-containing materials) and manufactured
products containing hazardous substances listed or classified as such under Environmental
Laws.

(iv)        “Release”
means any spilling, leaking, pumping, pouring, emitting, emptying, discharging,
injecting, escaping, leaching, seeping, migrating, dumping or disposing of any
Hazardous Substances (including the abandonment or discarding of barrels,
containers and other closed receptacles containing any Hazardous Substances)
into the indoor or outdoor environment.

3.20   Employee Benefits.

(a)    Schedule 3.20(a) lists, with
respect to each Seller and any trade or business (whether or not incorporated)
which is treated as a single employer with Seller (an “ERISA Affiliate”) within the meaning of Section 414(b),
(c), (m) or (o) of the Internal Revenue Code of 1986, as amended (the “Code”), all employee benefit plans
(as defined in Section 3(3) of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”)
with respect to which Seller is a plan sponsor, participating employer, or with
respect to which Employees are participants or eligible to participate, or
which is required to be aggregated with a Business ERISA Plan for purposes of
nondiscrimination testing under Code Section 410 or 401(k) (each a “Business ERISA Plan”).
Schedule 3.20(a) also separately
lists, with respect to Seller, any plan, benefit, program or arrangement not
otherwise a Business ERISA Plan that provides for (i) any supplemental
retirement, severance, sabbatical, medical, dental, vision care, disability,
employee relocation, cafeteria benefit (Code Section 125) or dependent
care (Code Section 129), life insurance or accident insurance plans,
programs or arrangements for the benefit of Employees, (ii) any bonus,
pension, profit sharing, savings, deferred compensation or incentive plans,
programs or arrangements for the benefit of Employees, and (iii) any other
fringe or employee benefit plans, programs or arrangements that apply to
Employees (all of which, together with the Business ERISA Plans, are referred
to herein as the “Business
Employee Plans”).

(b)   Each Seller
has previously delivered (or will have delivered within 20 days after the date
of this Agreement) to Purchaser a copy of each of the Business Employee Plans
and related plan documents (including trust documents, insurance policies or
contract, employee booklets, summary plan descriptions and other authorizing
documents, and, to the extent still in its possession, any material employee
communications relating thereto) and has, with respect to each Business ERISA
Plan which is subject to ERISA reporting requirements, provided a copy of the
most recent Form 5500 reports filed for the plan.

(c)    Any
Business ERISA Plan intended to be qualified under Section 401(a) of
the Code is qualified, and has either obtained from the Internal Revenue
Service a favorable determination letter as to its qualified status under the
Code, or has applied to the Internal Revenue Service for such a determination
letter. Sellers have also furnished Purchaser with the most recent Internal
Revenue 

 19
 

Service determination
letter issued with respect to each such Business ERISA Plan, and nothing has
occurred since the issuance of each such letter which could reasonably be
expected to cause the loss of the tax-qualified status of any Business ERISA
Plan subject to Code Section 401(a).

(d)   No Business
ERISA Plan is a “defined benefit plan” (as defined in Section 3(35) of
ERISA), and each Seller has no actual or potential liability with respect to
any defined benefit plan. Seller is not a party to, has not made a contribution
to, and has no liability or potential liability (including, but not limited to,
actual or potential withdrawal liability) with respect to any multi-employer
plans within the meaning of ERISA Section 4001(a)(3) or any Business
ERISA Plan of the type described in ERISA Section 4063 and 4064 or in Code
Section 413(c). Neither any Seller nor any affiliate of Seller, is subject
to any liability or penalty under Sections 4975 through 4980 of the Code or
Title I of ERISA with respect to any of the Business ERISA Plans. With respect
to the Business Employee Plans, all contributions attributable to plan years
ending on or prior to the Closing Date and all employer and salary reduction
employee contributions for the period prior to the Closing Date have been made
on or prior to the Closing Date.

(e)    No
Business Employee Plan promises or provides any health, life or other welfare
benefits to retired or former employees of each Seller, other than as required
by Code Section 4980B.

(f)    Each
Business Employee Plan, and any related trust, insurance contract or fund (as
applicable), has been administered in accordance with its terms and in
compliance with the requirements prescribed by any and all statutes, rules and
regulations (including ERISA and the Code), and each Seller has performed, or
caused to be performed by its responsible affiliate, all material obligations
required to be performed under the Business Employee Plans. With respect to
each Business ERISA Plan, each Seller has prepared (or has caused to be
prepared) in good faith and timely filed all requisite governmental reports
(which were true and correct as of the date filed) and has properly and timely
filed and distributed or posted all notices and reports to Employees required
to be filed, distributed or posted with respect to each such Business ERISA
Plan. No suit, administrative proceeding, action or other litigation has been
brought, or to Seller’s Knowledge is threatened, against or with respect to any
Business Employee Plan, including any audit or inquiry by the IRS or United
States Department of Labor.

(g)    With respect to each Business Employee Plan, each Seller has
complied with (i) the applicable health care continuation and notice
provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) and the proposed regulations
thereunder, (ii) the application requirements of the Family and Medical
Leave Act of 1993, as amended, and the regulations thereunder, and (iii) the
applicable requirements of the Health Insurance Portability and Accountability
Act of 1996 and the regulations thereunder.

3.21   Labor Matters.

(a)    Schedule 3.21(a)(1) contains
a materially true and complete list of the names, positions and salaries or
rates of pay, including bonus plans, of all persons presently employed (whether
full- or part-time) by Seller in connection with the Business (the “Employees”) and all persons
performing contract services for Seller in connection with the Business. Schedule 3.21(a)(2) lists all currently
effective written or legally binding employment agreements and other material
agreements with individual Employees that are not terminable at will, and all
material consulting, independent contractor and other agreements with
independent contractors or consultants to Sellers as of the date hereof, and
Sellers will provide to Purchaser an updated list of such information prior to
the Closing. Sellers have previously provided (or will provide within 20 days
after the date of this Agreement) to Purchaser true and correct copies of all
such written agreements. All independent contractors of Sellers have been
properly classified as independent contractors for the purposes of Tax laws,
laws applicable to employee benefits and other applicable law. All salaries and
wages paid with respect to 

 20
 

Employees
are in compliance in all material respects with applicable Tax laws, laws
applicable to employee benefits and other applicable law. Schedule
3.21(a)(3) contains a list of all Employees who are currently
on a leave of absence (whether paid or unpaid), the reasons therefor, the
expected return date, and whether reemployment of such Employee is guaranteed
by contract or statute, and a list of all Employees who have requested a leave
of absence to commence at any time after the date hereof, the reason therefor,
the expected length of such leave, and whether reemployment of such Employee is
guaranteed by contract or statute. As of the date of this Agreement, to the
knowledge of J. Douglas Kannapell, James A. Patterson II, Thomas A. Dieruf,
Thomas H. Lowe or any Vice President of the Sellers, no regional director or
divisional manager, or officer or any other key employee of any Seller, other
than the Excluded Employees, has informed or advised Seller that such person
does not intend to continue his or her employment or relationship with Seller
or with Purchaser after the date hereof or as a result of the transactions
contemplated hereby, unless otherwise stated herein or set forth in Schedule 3.21(a)(4).

(b)   The
transactions contemplated by this Agreement will not result in any additional
payments to, or increase the vested interest of, any Employee under any
Business Employee Plan. All salaries and bonuses, deferred compensation and any
other payments pursuant to any Business Employee Plan that are due and payable
as of the Closing Date have been paid by Sellers (other than accrued vacation
pay that has accrued during 2004 and bonuses for 2004 which are reflected on
the Final Working Capital Statement but are based on the results of Sellers
through the date of the Closing and only include amounts based on such results
through the Closing Date), and all year-end and/or merit bonuses to Employees
with respect to performance for the fiscal year ended December 31, 2003
shall have been paid by Sellers prior to the Closing Date.

(c)    (i) Neither
Seller nor any Employee is engaged in any unfair labor practice, and neither is
in material violation of any applicable laws respecting employment and
employment practices, terms and conditions of employment, and wages and hours; (ii) there
is no unfair labor practice complaint against any Seller actually pending or,
to Seller’s Knowledge, threatened before the National Labor Relations Board; (iii) there
is no strike, labor dispute, slowdown, or stoppage actually pending or, to
Seller’s Knowledge, threatened against Seller; (iv) no union organizing
activities are taking place with respect to Seller or any Employee; (v) no
grievance nor any arbitration proceeding arising out of or under any collective
bargaining agreement is pending against Seller or any Employee and no claims
therefor exist; (vi) no collective bargaining agreement that is binding on
any Seller or any Employee restricts it, him or her from relocating or closing
any of its operations; and (vii) Seller has not experienced any material
work stoppage or other material labor difficulty.

(d)   Except as
set forth on Schedule 3.21(d), and excluding
workman’s compensation, no claim currently exists or is pending or, to Seller’s
Knowledge, threatened against Seller or any Employees based on actual or
alleged race, age, sex, disability or other harassment or discrimination, or
similar tortious conduct, or based on actual or alleged breach of contract with
respect to any person’s employment with Seller, nor, to Sellers’ Knowledge, is
there any basis for any such claim.

(e)    Except as set forth on Schedule 3.21(e),
there are no pending or, to Seller’s Knowledge, threatened claims against
Seller under any workers compensation plan or policy or for long term
disability, and Seller has no obligations under COBRA with respect to any of
its former employees or qualifying beneficiaries thereunder, and Seller has not
incurred any material liability under and has complied at all times with the
Worker Adjustment Retraining Notification Act (“WARN”), and no fact or event exists that could give rise
to liability thereunder.

3.22   Insolvency Proceedings.   No insolvency proceedings of any kind or nature,
including, without limitation, bankruptcy, receivership, reorganization, or
other arrangements with creditors, whether 

 21
 

voluntary or
involuntary, against Sellers are pending or, to Sellers’ Knowledge, threatened,
except with respect to certain of Sellers’ account debtors.

3.23   Practices.   Neither
Seller nor any representative of Seller has, other than in full compliance with
all applicable laws and regulations, offered or given, and to Seller’s
Knowledge, no individual or entity has offered or given on Seller’s behalf,
anything of value to: (i) any official of a governmental authority, any
political party or official thereof or any candidate for political office; (ii) any
member of any governmental authority; or (iii) any other individual or
entity, in any such case while knowing or having reason to know that all or a
portion of such money or thing of value may be offered, given or promised,
directly or indirectly, to any member of any governmental authority or any
candidate for political office for the purpose of the following: (x)
influencing any action or decision of such individual or entity, in its, his or
her official capacity, including a decision to fail to perform an official
function; (y) inducing such individual or entity to use its, his or her
influence with any governmental authority to affect or influence any act or
decision of such governmental authority to assist Seller or any of its
subsidiaries in obtaining or retaining business for, with, or directing
business to, any individual or entity; or (z) where such payment would
constitute an illegal bribe, kickback or payment to assist Seller or any of its
subsidiaries in obtaining or retaining business for, with, or directing
business to, any individual or entity.

3.24   Related
Party Transactions.   There are no transactions or agreements between any
Seller and any member of Sellers or any other current or past officer,
director, employee or shareholder of Sellers (or any affiliate of any such
person), other than for current employment services in accordance with the
customary pay and benefit practices of Seller and other than those which will
not be assumed by Purchaser and which will not result in a Lien on the Acquired
Assets.

3.25   Accuracy
of Information.   All information furnished by the Sellers, the Sellers’
accountants or Sellers’ attorneys to the Purchaser relating to the Sellers (but
not including general Industry information or Industry reports of any nature)
for purposes of or in connection with this Agreement is true, accurate and
complete in all material respects and the representations and warranties made
by Sellers in this Agreement do not contain any untrue statement of a material
fact or omit to state any material fact necessary in order to make any statement
contained herein, in light of the circumstances in which they are being made,
not misleading that are applicable specifically to the Sellers, as opposed to
those that are applicable to companies in the Industry generally, other than as
a result of “Adverse Occurrences” (as defined below). There is no fact known to
Sellers which such Sellers have not disclosed to the Purchaser in writing which
has had or would reasonably be likely, in the aggregate, to have a Material
Adverse Effect on the Sellers, other than Adverse Occurrences that are
applicable to some members of the Industry or legislation passed with respect
to the Industry. Provided, however, that the Purchaser acknowledges that the
Business is a highly risky business and is subject to numerous risk factors
including, but not limited to, changes after the date of this Agreement in
economic conditions, increases in competition, increases in insurance costs,
other risks typically applicable to other companies in the Industry, changes in
laws or interpretations of such laws (including, but not limited to, statutes,
ordinances, regulations, administrative proceedings, lawsuits, interpretations
by any regulatory agency or any similar actions causing such changes in laws,
new laws or changes in interpretations), judicial or administrative judgments
(including, but not limited to, threatened lawsuits against other persons in
the Industry), arbitration decisions, rulings, orders, any changes affecting
the Industry in general, and the like regardless whether pending as of the date
of this Agreement or arising after the date of this Agreement, and negative
publicity regarding the Business or the Industry. The Sellers disclaim any
responsibility, obligations or liability regarding any projections or
predictions regarding the future performance of the Business, and Purchaser
acknowledges it is not relying on any of the same other than as expressly set
forth in Section 3.11(a)(ii). All of the foregoing risk factors and
statements referred to in this Section 3.25 are collectively referred to
as “Adverse Occurrences”
or “Adverse Occurrence”). The Purchaser
shall not have any claims against Sellers or the Member Guarantors as a result
of the effect Adverse Occurrences may have on the Business before or after the
Closing Date 

 22
 

other than as
expressly set forth in Section 3.11(a)(ii). The Purchaser acknowledges
that it shall be responsible for its own evaluation of the Adverse Occurrences
and the Industry. If, as a result of an Adverse Occurrence, any of the Sellers’
or the Member Guarantors’ representations and warranties are or become untrue
or if any of Sellers’ covenants set forth in Section 5 hereof are violated
or not complied with as a result of an Adverse Occurrence, the same shall not
be deemed a breach of this Agreement for purposes of Section 6.1 or Section 10.1,
but Section 6.6 shall apply thereto.

3.26   No
Additional Representations and Warranties.   EXCEPT
AS SPECIFICALLY PROVIDED IN SECTIONS 2.1 THROUGH 3.26 HEREOF OR ANYWHERE ELSE
IN THIS AGREEMENT, NO SELLER OR MEMBER GUARANTOR IS MAKING ANY REPRESENTATION,
WARRANTY OR COVENANT OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING BUT
NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE, AND THE PARTIES HERETO AGREE AND ACKNOWLEDGE THAT ALL SUCH
IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS ARE HEREBY EXCLUDED AND
DISCLAIMED. THE ACQUIRED ASSETS AND BUSINESS ARE BEING SOLD “AS IS, WHERE IS, WITH ALL FAULTS”, EXCEPT
AS SPECIFICALLY PROVIDED TO THE CONTRARY IN THIS AGREEMENT. THE SELLERS AND
MEMBER GUARANTORS DO NOT WARRANT THE FUTURE OPERATIONS, PROJECTIONS OF ANY
NATURE, FINANCIAL REQUIREMENTS OR PERFORMANCE OF THE BUSINESS. NOTWITHSTANDING
ANYTHING TO THE CONTRARY HEREIN, THE SELLERS AND MEMBER GUARANTORS ARE NOT, AND
SHALL NOT BE, LIABLE FOR ANY LOSSES, ACTIONS, ADVERSE OCCURRENCES, AND THE
LIKE, OF ANY NATURE WHATSOEVER WHICH ARISE OUT OF ANY ACTS, OMISSIONS OR EVENTS
OCCURRING AFTER THE CLOSING DATE OR WHICH ARISE OUT OF THE LOSS OF ANY
LICENSE(S) OR THE ABILITY TO OPERATE THE BUSINESS WHICH IS INCURRED OR ARISES
ON OR AFTER THE CLOSING DATE (OTHER THAN AS A RESULT OF AN ACT, OMISSION OR
EVENT BY THE SELLERS BEFORE THE CLOSING), OR ANY ACTIVITY, FORM OR ASPECT
THEREOF, EXCEPT AS EXPRESSLY SET FORTH IN SECTION 3.11(a)(ii).

ARTICLE
4

REPRESENTATIONS AND WARRANTIES OF PURCHASER

Purchaser hereby
represents and warrants to Sellers that as of the date of this Agreement and as
of the Closing Date:

4.1   Organization
and Good Standing.   Purchaser is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of
Georgia. Purchaser has the necessary power and authority to carry on its
business as it is now being conducted and to own and lease the properties and
assets it now owns and leases.

4.2   Power and Authority.   Purchaser has the requisite power and authority to
enter into this Agreement and each other certificate, agreement, document or
instrument to be executed and delivered by it in connection with the
transactions contemplated by this Agreement, to perform its obligations
hereunder and thereunder and to consummate the transactions contemplated hereby
and thereby. The execution, delivery and performance by Purchaser of this
Agreement and each other certificate, agreement, document or instrument to be
executed and delivered by it in connection with the transactions contemplated
by this Agreement, and the consummation of the transactions contemplated hereby
and thereby, have been duly authorized by all necessary corporate or other
action, and no other corporate or other proceedings on the part of Purchaser
are necessary to authorize the execution, delivery and performance of this
Agreement and each other certificate, agreement, document or instrument to be
executed and delivered by it in connection with the transactions contemplated
by this Agreement.

 23
 

4.3   Due Execution; Binding Effect.   This Agreement, and each other certificate,
agreement, document or instrument to be executed and delivered by Purchaser in
connection with the transactions contemplated by this Agreement, has been or
will be, as applicable, duly and validly executed and delivered by Purchaser
and, assuming the due authorization, execution and delivery hereof and thereof
by each other party hereto and thereto, each constitutes or will constitute, as
applicable, a legal, valid and binding obligation of Purchaser, enforceable
against Purchaser in accordance with its terms.

4.4   No Violation; Consents.   Except for consents of, notices to, or filings with,
the Federal Trade Commission and the Department of Justice pursuant to the HSR
Act, if any, and any licenses, approvals, permits and registrations from
governmental agencies or authorities required in connection with the Business,
the execution, delivery and performance by Purchaser of this Agreement, and
each other certificate, agreement, document or instrument to be executed and
delivered by it in connection with the transactions contemplated by this
Agreement, the consummation of the transactions contemplated hereby and
thereby, and the fulfillment of and compliance with the terms and conditions
hereof and thereof do not and will not, with or without the passing of time or
the giving of notice, or both:

(a)    violate or
conflict with any provision of the Certificate of Formation, the Operating
Agreement, or other organizational document of Purchaser;

(b)   breach or
otherwise constitute or give rise to a default under, result in the loss of any
benefit under or permit the acceleration of any obligation under any contract,
commitment or other obligation to or by which Purchaser is a party or is bound;

(c)    violate
any statute, ordinance, law, rule, regulation, judgment, order or decree of any
court or other governmental or regulatory authority to which Purchaser is
subject; or

(d)   require any
consent, approval or authorization of, notice to, or filing, recording,
registration or qualification with any third party, court or governmental or
regulatory authority.

4.5   Litigation.   There
is no litigation, action, suit, arbitration, mediation, hearing or governmental
investigation pending or, to the knowledge of the Purchaser, threatened against
Purchaser or any of its affiliates, which affects the legality, validity or enforceability
of this Agreement or the transactions contemplated hereby or which seeks to
obtain damages or obtain relief as a result of the transactions contemplated by
this Agreement, or which would imperil Purchaser’s ability to obtain the “Financing”
(as defined in Section 4.6).

4.6   Financing.   As
of the date hereof, Purchaser believes in good faith that it will be able to
obtain the required financing substantially in accordance with the various
proposals set forth in Schedule 4.6 to
close the purchase contemplated by this Agreement by the Termination Date. Purchaser
will use its commercially reasonable efforts to obtain such financing promptly
(the “Financing”).

ARTICLE
5

COVENANTS OF THE SELLERS AND PURCHASER

5.1   Conduct
of the Business Pending Closing.   From
the date hereof until the Closing, each Seller shall:

(a)    conduct
its Business in the usual, regular and ordinary course consistent with such
Seller’s past practices; use its commercially reasonable efforts to preserve
intact the present organization of such Seller; and use its commercially
reasonable efforts (with no obligation to increase such persons’ compensation
or benefits) to keep available the services of the present officers and
Employees of such Seller and to preserve such Seller’s goodwill, consistent
with past practices;

(b)   maintain
the Acquired Assets in their present operating condition (ordinary wear and
tear excepted);

 24
 

(c)    observe
and remain in compliance in all material respects with all statutes, laws,
rules, regulations, orders, decrees and ordinances applicable to Seller or the
operation of the Business (unless stayed pending appeal of such law or
decision), subject to changes in laws or interpretations of such laws
(including but not limited to statutes, ordinances, regulations, administrative
proceedings, orders or any similar actions), judicial, administrative or
arbitration judgments, rulings, orders and the like that occur after the date
of this Agreement;

(d)   maintain
and keep in full force and effect all of the insurance currently maintained by
Seller, unless replaced by substantially similar policies that do not reduce
the amount of coverage compared to those policies currently in effect;

(e)    not sell,
mortgage, pledge, lease, or otherwise transfer, or dispose of or distribute any
of its assets used in connection with the Business or enter into any agreement
with respect to the foregoing, other than in the ordinary course of Business
consistent with such Seller’s past practices;

(f)    pay all
liabilities and obligations as and when due, including all Taxes, other than
such liabilities or obligations Seller is contesting in good faith by
appropriate proceedings and has set aside on its books adequate reserves with
respect thereto;

(g)    not alter,
modify or accelerate its existing collection levels of accounts receivables,
or, other than in its ordinary course of its Business and consistent with past
practice, write-off as uncollectible any accounts or receivables, other than as
a result of changes in laws or interpretations of such laws after the date of
this Agreement (including but not limited to statutes, ordinances, regulations,
administrative proceedings, orders or any similar actions), judicial,
administrative or arbitration judgments, rulings, orders and the like that
occur after the date of this Agreement;

(h)   except with
respect to Excluded Employees, not declare or increase the benefits or
compensation payable or to become payable to any of Seller’s Employees or any
bonus, profit sharing or other extraordinary compensation to any Employee of
Seller, or enter into any agreement with respect to the foregoing for any such
Employee, except in the ordinary course of business and consistent with past
practices;

(i)    not make
or enter into any agreement to make any capital expenditure on behalf of
Sellers in excess of$50,000 individually or $200,000 in
the aggregate, other than pursuant to existing contracts and other than any
dispute with the Business Software Alliance;

(j)     not amend
or terminate any contract or agreement required to be listed on Schedule 3.12(a) and, except in the ordinary course of
Business on a basis consistent with such Seller’s past practices, not enter
into any material contract or agreement with any other individual, entity or
governmental authority, including, without limitation, any employment agreement
not terminable at will by Sellers;

(k)   maintain
its books, records and accounts, and maintain a system of accounting, as may be
required or as may be necessary to permit the preparation of audited financial
statements in accordance with GAAP and in compliance with the regulations of
any governmental or regulatory authority having jurisdiction over it or any of
its properties, other than as a result of changes in laws or interpretations of
such laws after the date of this Agreement (including but not limited to
statutes, ordinances, regulations, administrative proceedings, orders or any
similar actions), judicial, arbitration, or administrative judgments, rulings,
orders and the like that occur after the date of this Agreement;

(l)    continue
reasonably to protect all confidential information and trade secrets of, each
Seller, in accordance with such Seller’s past practices;

(m)  not incur
any indebtedness or any liabilities other than in the ordinary course of
Business consistent with such Seller’s past practices;

 25
 

(n)   not make or
change any election, change an annual accounting period, adopt or change any
accounting method, file any amended Tax Return, enter into any closing
agreement, settle any Tax claim or assessment relating to the Seller, surrender
any right to claim a refund of Taxes, consent to any extension or waiver of the
limitation period applicable to any Tax claim or assessment relating to Seller,
or take any other similar action relating to the filing of any Tax Return or
the payment of any Tax, except as consistent with past practice, that would
result in a Lien on the Acquired Assets; or

(o)   be allowed
to make cash distributions to its members and owners.

5.2   Access to Sellers.

(a)    From the
date hereof until the Closing, Sellers and their officers, directors, managers,
employees, agents and representatives shall permit Purchaser and Purchaser’s
representatives, agents, counsel and accountants to have reasonable access,
with prior advance notice, at all reasonable times to the premises, Business,
properties, assets, financial statements, contracts, books, records and working
papers of, and other relevant information pertaining to, each Seller and to
furnish to Purchaser and Purchaser’s representatives, agents, counsel and
accountants such financial and operating data and other information with
respect to each Seller as Purchaser may reasonably request.

(b)   If
Purchaser believes that Sellers’ practices or methods of doing business are not
legal or prudent, it may terminate this Agreement prior to the Closing by
giving written notice to the Seller Representative, in which event neither
Purchaser on the one hand nor Sellers and Member Guarantors on the other, shall
have any liability to the other in connection with this Agreement or the transactions
contemplated hereby.

5.3   Reasonable Efforts;
Regulatory Applications.

(a)    Each of
the Parties will use its reasonable efforts to take, or cause to be taken, all
actions and to do, or cause to be done, all things necessary, proper, desirable
or advisable under applicable law so as to permit consummation of the
transactions contemplated by this Agreement as promptly as reasonably
practicable and will use reasonable efforts to cooperate with the other Parties
hereto to that end.

(b)   Each Party
shall cooperate and use its reasonable efforts to prepare all documentation, to
effect all filings (including, without limitation, filings under the HSR Act to
the extent required) and to obtain all permits, consents, approvals and
authorizations of all third parties and governmental or regulatory authorities
necessary to consummate the transactions contemplated by this Agreement. Each
Party shall respond as promptly as practicable to any inquiries or requests
received from the Federal Trade Commission or the Department of Justice for
additional information or documentation. Each Party shall (i) give the
other Parties hereto prompt notice of the commencement of any claim, action,
litigation or other proceeding by any governmental or regulatory authority in
connection with the transactions contemplated hereby; (ii) keep the other
Parties informed as to the status of any such claim, action, litigation or
other proceeding; and (iii) promptly inform the other Party of any
communication to or from the Federal Trade Commission or the Department of
Justice regarding the transactions contemplated hereby. The Purchaser shall use
its reasonable efforts to obtain in a timely manner all licenses, approvals,
permits and registrations from governmental authorities required in connection
with the Business.

(c)    Notwithstanding
anything herein to the contrary, Purchaser shall have no obligation under this
Agreement to do any of the following:  (i) dispose
or cause any of its affiliates to dispose of any assets; (ii) to
discontinue or cause any of its affiliates to discontinue offering any product
or services; (iii) to license or otherwise make available, or cause any of
its affiliates to license or otherwise make available, to any person or entity,
any technology, software or other proprietary asset; (iv) to hold separate
or cause any of its affiliates to hold separate any assets or operations
(either before or after 

 26
 

the Closing Date); or (v) to
make or cause any of its affiliates to make any commitment (to any governmental
or regulatory authority or otherwise) regarding its future operations.

(d)   Purchaser
shall use its reasonable efforts to obtain the Financing prior to the
Termination Date and if Purchaser determines that it will not be able to obtain
the Financing prior to the Termination Date, the Purchaser shall promptly give
written notice to the Seller Representative.

(e)    Purchaser
and Sellers shall each use their reasonable efforts to obtain consents to
assignments of the Assumed Contracts other than Utility Contracts; provided, however,
that the Utility Contracts shall be deemed part of the Assumed Contracts, and
the Purchaser shall (i) be responsible for dealing with the utility
companies after the Closing, (ii) hold harmless the Sellers and Member
Guarantors for all such utility bills, and (iii) pay and be liable for all
such Utility Contracts.

5.4   Notice of Changes.   Each Seller and Member Guarantor (but only as to his
own individual representations and warranties) shall promptly, but only up to
the second business day preceding the Closing Date, deliver to the Purchaser
updates (collectively the “Disclosure Schedule Updates”) of any matters occurring
after the date hereof which, if existing or occurring on the date hereof, would
have been required to be set forth on a schedule to this Agreement or which
would render inaccurate any of the representations or warranties made by any
Seller or Member Guarantor in this Agreement, and such notice shall be deemed
to be a modification of any representation or warranty; provided,
however, that no Disclosure Schedule
Update shall be deemed to supplement or amend a disclosure schedule of Sellers
or Member Guarantors for the purpose of determining the accuracy of any of the
representations and warranties made by the Sellers or Member Guarantors as of
the date of this Agreement (except with respect to an Adverse Occurrence); provided, further, that
Purchaser shall have the right to terminate this Agreement and have all rights
and remedies set forth in Section 8.2.

5.5   No
Solicitation of Transactions.   During
the period commencing on the date hereof and ending on the earlier to occur of
the Closing Date or the Termination Date, no Seller nor its respective members
or affiliates shall, directly or indirectly, through any officer, director,
manager or agent of any of them or otherwise, initiate, solicit or encourage
(including by way of furnishing non-public information or assistance), or enter
into negotiations of any type, directly or indirectly, or enter into a confidentiality
agreement, letter of intent or purchase agreement, merger agreement or other
similar agreement with any person or entity other than Purchaser or Purchaser’s
assignee (as referenced in Section 11.6) with respect to a sale of all or
any substantial portion of the assets of any Seller, or a merger,
consolidation, business combination, sale of all or any portion of the units or
other equity interests of any Seller, or the liquidation or similar
extraordinary transaction with respect to any Seller. Sellers shall notify
Purchaser as promptly as practicable of all relevant terms of any inquiry or
proposal by a third party to do any of the foregoing that any Seller or any of
its respective members or affiliates or any of its respective officers,
directors, partners, managers, employees, investment bankers, financial
advisors, attorneys, accountants or other representatives may receive relating
to any of the foregoing. In the event such inquiry or proposal is in writing,
Sellers shall deliver to Purchaser a copy of such inquiry or proposal together
with such written notice.

5.6   Final
Financial Statements.   As soon as reasonably practicable following the date
hereof, but in no event no later than the Closing Date, each Seller shall
deliver to Purchaser the unaudited financial statements for the monthly period
ended as of the end of the month which is more than thirty days prior to the
Closing Date (collectively, the “Final Financial Statements”).

 27

5.7   Liens
on Acquired Assets.   All Liens on the Acquired Assets, other than (i) Liens
for Taxes not yet due or in default and payable without penalty and interest;
and (ii) Liens fully reflected or reserved against in the Final Working
Capital Statement, shall be discharged on or before the Closing Date.

5.8   Notice
of Adverse Occurrences.   If any of Thomas H. Lowe, Thomas A.
Dieruf, J. Douglas Kannapell or James A. Patterson II learns of an Adverse
Occurrence that relates to the Sellers in particular (including, but not
limited to, a material charge, court, arbitration or administrative proceeding
or judgment that is made, filed or rendered, as applicable, against any of the
Sellers) and such person understands the significance of such items as it
relates to this Agreement, the Sellers shall give written notice of the same to
Purchaser. Provided, however, Sellers shall have no obligation to inform
Purchaser of an Adverse Occurrence that affects the Industry generally or other
companies in the Industry (as opposed to the Sellers in particular) unless
Sellers shall have received written notice from a regulatory or governmental
authority of such Industry-wide Adverse Occurrence even though it affects the
Industry generally. Except as set forth herein, the Purchaser shall be
responsible for monitoring such industry-wide Adverse Occurrences for itself.

5.9   Notice of Continued
Employment.   If any of J. Douglas Kannapell, James A. Patterson II,
Thomas A. Dieruf, Thomas H. Lowe, or any Vice President of the Sellers
becomes aware of any regional director or divisional manager, or officer or any
other key employee of any Seller, other than the Excluded Employees, that such
person does not intend to continue his or her employment or relationship with
Seller or with Purchaser after the date of this Agreement or as a result of the
transactions contemplated hereby, the Sellers shall give written notice of the
same to Purchaser.

ARTICLE 6

CONDITIONS TO OBLIGATIONS OF PURCHASER

All of the
obligations of Purchaser under this Agreement are subject to the fulfillment
prior to or at the Closing of each of the following conditions, any of which
may be waived in writing by Purchaser in its sole discretion:

6.1   Representations
and Warranties.   All representations and warranties of the Member
Guarantors and the Sellers contained in this Agreement (which, for the purposes
of this Section 6.1 shall be read as though each of them contained only
one Material Adverse Effect or materiality qualifier) shall be true and correct
in all material respects as of the date hereof, and such representations and
warranties shall be true and correct in all material respects as of the Closing
as if made at and as of such time (except for those that state they are true as
of the date of this Agreement or some other specified date).

6.2   Performance
of Agreements.   Each Seller shall have fully performed and complied
in all material respects with all agreements and conditions required by this
Agreement to be performed or complied with by it prior to or at the Closing.

6.3   No
Injunctions.   No preliminary
or permanent injunction or other order by any federal, state or local court or
any governmental or regulatory authority which prevents or restrains the
consummation of the transactions contemplated by this Agreement shall have been
issued and remain in effect, and no action to obtain any such injunction or
order shall have been filed and remain pending.

6.4   Governmental
Consents and Approvals.   Any
and all governmental authorities, bodies or agencies having jurisdiction over
the transactions contemplated by this Agreement or any document ancillary
hereto that is required to consent to these transactions shall have granted
such consents, authorizations and approvals as are necessary for the
consummation thereof (including, without limitation, receipt by Purchaser of
all licenses necessary to conduct the Business following Closing), and all
applicable waiting or similar periods required by applicable law shall have
expired, and all such consents, authorizations and approvals shall be in form
and substance reasonably satisfactory to Purchaser and shall not subject 

 28
 

Purchaser to any
penalty or, in Purchaser’s reasonable judgment, other adverse condition under
or pursuant to any applicable law or regulation.

6.5   Third
Party Consents and Approvals.   All
consents, authorizations and approvals to the transactions contemplated by this
Agreement that are required from any third party pursuant to the terms of any
Assumed Contract, the Leases, the software licenses, or the CMAX software
licenses or otherwise shall have been duly obtained, and all such consents,
authorizations and approvals shall be in form and substance reasonably
satisfactory to Purchaser; provided, however, that solely with respect to the Real Property
Leases, the software licenses, or the CMAX software licenses, if the Sellers
obtain less than 100% of  the consents or
approvals with respect to the Real Property Leases, the software licenses, or
the CMAX software licenses, the Purchaser shall not be obligated to (but may,
at its option) close the purchase contemplated hereby and in the event that the
Purchaser elects to close the purchase contemplated hereby then any losses or
liability of any nature relating to such consents or approvals for the Real
Property Leases, the software licenses, or the CMAX software licenses that have
not been obtained shall be the sole and exclusive obligations of the Purchaser,
and Purchaser shall have no claims against Sellers and/or Member Guarantors as
a result of not obtaining such consents, authorizations or approvals relating
to such Real Property Leases, software licenses or CMAX software licenses.

6.6   No
Material Adverse Effect.   Since
the date hereof, there shall not have occurred any event, circumstance or
development that, in the aggregate, (a) has had or is reasonably likely to
have a material adverse effect upon the business, assets, operation, condition
(financial or otherwise), or results of operations of Sellers, including as a
result of Adverse Occurrences, other than any change attributable to the
announcement or pendency of this Agreement, or (b) would materially impair
the ability of Sellers or Member Guarantors to perform their obligations under
this Agreement (collectively, a “Material Adverse Effect”).

6.7   Financing.   Purchaser shall have obtained the Financing
necessary for Purchaser to pay the Adjusted Purchase Price in accordance with Article 1.

6.8   Due Diligence.   Purchaser shall have completed its legal,
business and accounting due diligence investigation of each Seller in scope and
with results satisfactory to Purchaser. Unless Purchaser notifies the Seller
Representative on or prior to the date that is sixty (60) days after the date
of this Agreement (the “Due
Diligence Date”) of its dissatisfaction with the due diligence
investigation of the Business and each Seller specifying such reasons, the
condition of this Section 6.8 will be deemed to have been satisfied; provided, however, that
additional due diligence for purposes of the Financing may continue beyond such
date that is sixty (60) days after the date of this Agreement as reasonably
necessary; provided, further,
that to the extent any Seller or Member Guarantor delivers a Disclosure
Schedule Update, such Due Diligence Date shall not apply with respect to the
items referenced (or items materially affected by such reference) in the
Disclosure Schedule Update and Purchaser will not be required to deliver
written notice of its satisfaction with the due diligence with respect to such
items, provided, that if the Closing occurs the Purchaser shall be deemed
conclusively to have satisfied or waived such due diligence and shall be deemed
to have accepted the Disclosure Schedule Update. If the Purchaser does give
such written notice on or prior to the Due Diligence Date of its
dissatisfaction, the Sellers shall have twenty (20) days after Seller
Representative’s receipt thereof within which to cure such issues to the
reasonable satisfaction of the Purchaser.

6.9   Deliveries
of Sellers.   At
the Closing, Sellers shall have delivered or caused to be delivered to
Purchaser each of the following, in form and substance reasonably satisfactory
to Purchaser:

(a)    The Escrow
Agreement duly executed by the Seller Representative as of the Closing Date;

(b)   A Bill of
Sale and an Assumption and Assignment Agreement between each Seller and
Purchaser, and such other reasonable assumption, assignments and other
instruments of transfer and 

 29
 

conveyance necessary or
appropriate to transfer and assign the Acquired Assets to Purchaser, including,
without limitation, assignments of all Intellectual Property, in recordable
form to the extent necessary or desirable to assign such rights, obligations
under the Leases, and for Purchaser to assume all the Assumed Contracts, the
Leases and software licenses, if any, and delivery of all title documents and
tag receipts with respect to any vehicles or other titled equipment, duly
endorsed for transfer to Purchaser;

(c)    A release
by Sellers from any confidentiality or non-competition restrictions contained
in any agreement between Sellers and any Employee who commences employment with
Purchaser;

(d)   A
certificate of each Seller, dated as of the Closing Date, certifying to the
fulfillment of the conditions set forth in Sections 6.1 and 6.2 hereof;

(e)    All
records, client lists, files and other documents of Sellers related to the
Business;

(f)    An opinion
of counsel to the Sellers, dated the Closing Date, substantially in the form
attached hereto as Exhibit A;

(g)    Any other
information, documents or certificates reasonably requested by Purchaser to
effect the transactions contemplated herein; and

(h)   A Non-Competition Agreement substantially in the form of Exhibit C attached hereto (each a “Non-Competition Agreement”),
duly executed by the individuals listed on Schedule 6.9(h).

6.10   Escrow
Agreement.   The
Escrow Agent shall have delivered to Purchaser the Escrow Agreement duly
executed by the Escrow Agent as of the Closing Date.

6.11   Transferred
Employees.   Substantially
all of the Employees of Sellers (other than the Excluded Employees) who are
offered employment by Purchaser shall have accepted such offer of employment in
accordance with the terms of this Agreement, with no substantial change in
compensation, benefits or other terms and conditions of employment.

6.12   Bank
Accounts and Bank Agreements.   Purchaser
shall have opened the bank accounts necessary for the operation of the Business
and shall have entered into appropriate bank agreements with respect to the
states in which the Business is operated pursuant to the Bank Model.

6.13   Related
Agreements.   The
contemporaneous closing of the Separate Purchase Agreement between
Purchaser, First American Holding and the other sellers and member guarantors a
party thereto.

ARTICLE
7

CONDITIONS TO OBLIGATIONS OF THE SELLERS

All of the
obligations of Sellers under this Agreement are subject to the fulfillment
prior to or at the Closing of each of the following conditions, any of which
may be waived in writing by the Seller Representative in its sole discretion:

7.1   Representations
and Warranties.   All
representations and warranties of Purchaser contained in this Agreement shall
be true and correct as of the date hereof, and such representations and
warranties shall be true and correct in all material respects as of the Closing
as if made at and as of such time (except for those that state they are true as
of the date of this Agreement or some other specified date).

7.2   Performance
of Agreements.   Purchaser
shall have fully performed and complied in all material respects with all agreements
and conditions required by this Agreement to be performed or complied with by
it prior to or at the Closing. Section 6.9(h) shall have been
satisfied as of the Closing Date or waived as a condition to Closing by the
Purchaser.

 30
 

7.3   No Injunctions.   No preliminary or permanent injunction or other
order by any federal, state or local court or any other governmental or
regulatory authority which prevents or restrains the consummation of the
transactions contemplated by this Agreement shall have been issued and remain
in effect, and no action to obtain any such injunction or order shall have been
filed and remain pending.

7.4   Governmental
Consents and Approvals.   Any
and all governmental authorities, bodies or agencies having jurisdiction over
the transactions contemplated by this Agreement or any document ancillary
hereto that is required to consent to these transactions shall have granted
such consents, authorizations and approvals as are necessary for the
consummation thereof, and all applicable waiting or similar periods required by
applicable law shall have expired, and all such consents, authorizations and
approvals shall be in form and substance reasonably satisfactory to the Seller
Representative and shall not subject Seller to any penalty or, in the Seller’s
reasonable judgment, other adverse condition under or pursuant to any
applicable law or regulation.

7.5   Deliveries
of Purchaser.   At
the Closing, Purchaser shall deliver to the Seller Representative each of the
following, in form and substance reasonably satisfactory to Seller
Representative:

(a)    The
Adjusted Purchase Price in accordance with Article 1 hereof;

(b)   The Escrow
Agreement duly executed by Purchaser as of the Closing Date;

(c)    An
Assumption Agreement duly executed by Purchaser with each Seller pursuant to
which Purchaser assumes all obligations under the Assumed Liabilities;

(d)   A
certificate of an officer of Purchaser, dated as of the Closing Date,
certifying to the fulfillment of the conditions set forth in Sections 7.1 and
7.2 hereof;

(e)    An opinion
of counsel to Purchaser, dated as of the Closing Date, substantially in the
form attached hereto as Exhibit B;

(f)    Any other
information, documents or certificates reasonably requested by the Seller
Representative to effect the transactions completed herein; and

(g)    The
Non-Competition Agreements duly executed by Purchaser as of the Closing Date.

7.6   Escrow Agreement.   The
Escrow Agent shall have delivered to the Seller Representative the Escrow
Agreement duly executed by the Escrow Agent as of the Closing Date.

7.7   Third
Party Consents and Approval.   All consents, authorizations and
approvals to the transactions contemplated by this Agreement that are required
from any third party pursuant to the terms of any Assumed Contracts, the
Leases, the licenses, the CMAX software licenses or otherwise shall have been
duly obtained, and all such consents, authorizations and approvals shall be in
form and substance reasonably satisfactory to the Sellers; provided,
however, obtaining consents to the
assignment of the Real Property Leases, the software licenses and the CMAX
software licenses shall not be a condition to the Closing for the Sellers or
Member Guarantors if the Purchaser assumes the obligation to obtain such
consents or waives such obligations in accordance with Section 6.5.

7.8   Related Agreements.   The contemporaneous closing of the Separate Purchase
Agreement between Purchaser, First American Holding and the other
sellers and member guarantors a party thereto.

ARTICLE
8

TERMINATION

8.1   Termination.   This Agreement may be terminated at any time
prior to the Closing as follows:

(a)    by the
mutual written consent of the Parties;

 31
 

(b)   by written
notice from Purchaser to the Seller Representative in the event any Seller or
Member Guarantor fails to cure any material breach by it of this Agreement
within fifteen (15) days after receiving written notice thereof;

(c)    by written
notice from the Seller Representative to Purchaser in the event Purchaser fails
to cure any material breach of this Agreement by Purchaser within fifteen (15)
days after receiving written notice thereof;

(d)   by written
notice from Purchaser to the Seller Representative in the event a Material
Adverse Effect occurs prior to the Closing as contemplated by Section 6.6;

(e)    by written notice from Purchaser to the Seller Representative, or
from the Seller Representative to Purchaser, in the event the Closing shall not
have occurred on or before July 1, 2004 (the “Termination Date)”, for any
reason, other than the delay, breach of this Agreement or nonperformance of the
Party seeking such termination (or by any Sellers in the event the Seller
Representative is seeking such termination);

(f)    by written
notice from Purchaser in accordance with Section 6.8;

(g)    if a
governmental authority shall have issued an order, decree or ruling or taken
any other action, in each case permanently restraining, enjoining or otherwise
prohibiting the transactions contemplated by this Agreement and such order,
decree, ruling or other action shall have become final or non-appealable;

(h)   by the
Seller Representative on behalf of the Sellers and Member Guarantors upon
receipt of written notice from Purchaser that the Purchaser is likely to be
unable to obtain the Financing in accordance with Section 4.6; or

(i)    by
Purchaser in accordance with Section 5.2(b).

8.2   Effect of Termination.

(a)    Subject to
Section 8.3, in the event this Agreement is terminated pursuant to
Sections 8.1(a), 8.1(d), 8.1(e), 8.1(f), 8.1(g), 8.1(h) or 8.1(i), no
Party shall have any further liability or obligation hereunder to any other
Party, even if the other Party claims a breach of this Agreement.

(b)   In the
event this Agreement is terminated pursuant to Sections 8.1(b) or 8.1(c),
then the terminating Party shall be entitled to pursue any and all rights and
remedies available to it hereunder, at law or in equity against the other
Party, if any; provided, however,
such claims may not exceed $3,750
in the aggregate; provided, further,
however, that:

(i)          the Purchaser may not seek any indemnification or any other
damages against any Seller or Member Guarantor if this Agreement is terminated
prior to the date (A) the Purchaser has provided to the Seller
Representative written notice that Purchaser has received a term sheet that the
Purchaser has certified in writing to Sellers that Purchaser  is willing to accept with respect to the
Financing, and (B) the requirement set forth in Section 6.8 shall
have been satisfied or waived by the Purchaser other than with respect to any
items referenced in any Disclosure Schedule Update and any item materially
affected by such Disclosure Schedule Update; and

(ii)        Sellers and Member Guarantors may not
seek any indemnification or any other damages against Purchaser if this
Agreement is terminated prior to the date that Purchaser is satisfied with its
due diligence review pursuant to Section 6.8.

(c)    In the
event that the Purchaser terminates this Agreement pursuant to Sections 6.1
(but only as a result of an Adverse Occurrence), 6.2 (but only as a result of
an Adverse Occurrence), 6.3, 6.4, 6.5, 6.6, 6.10, 6.11 or 6.14 (unless
Purchaser has established that it has terminated such Separate 

 32
 

Purchase Agreement under
provisions thereof entitling Purchaser to recover damages against the Sellers
thereunder pursuant to Section 8.2(b) thereof) not being satisfied as
of the Closing Date, the Purchaser shall not have any claims whatsoever against
Sellers or the Member Guarantors in connection with this Agreement or the
transactions contemplated hereby. In the event that the Sellers or Member
Guarantors terminate this Agreement for any item relating to or arising out of
Sections 6.9(c) (unless waived by the Purchaser), Sections 7.1 (but only
as a result of an Adverse Occurrence), 7.2 (but only as a result of an Adverse
Occurrence), 7.3, 7.4, 7.6, 7.7 or 7.8 (unless Sellers or the Member Guarantors
have established that they have terminated such Separate Purchase Agreement
under provisions thereof entitling Sellers or the Member Guarantors to recover
damages against the Purchaser therein pursuant to Section 8.2(b) thereof)
not being satisfied as of the Closing Date, the Sellers and Member Guarantors
shall not have any claim whatsoever against Purchaser in connection with this
Agreement or the transactions contemplated hereby.

8.3   Survival
of Certain Provisions.   Notwithstanding
any provision contained in this Agreement to the contrary, the terms of the
Confidentiality Agreement dated October 13, 2003 between the Parties, Section 8.2,
this Section 8.3, Section 9.2 (Brokers; Expenses), Section 9.3
(Publicity) and Article 11 (Miscellaneous) shall survive any termination
or expiration of this Agreement.

ARTICLE
9

OTHER AGREEMENTS OF THE PARTIES

9.1   Reasonable
Efforts.   From
and after the Closing Date, upon the terms and subject to the conditions set
forth in this Agreement, each Party shall use all commercially reasonable
efforts to take or cause to be taken all actions and to do or cause to be done
all things necessary, proper or advisable under applicable laws and regulations
to consummate and make effective the transactions contemplated by this
Agreement.

9.2   Brokers;
Expenses.   Except
for fees payable to Stephens Inc. by Purchaser, each Party hereto hereby
represents and warrants to the other Party that it has not incurred any
liability for brokerage fees, finder’s fees, agent’s commissions or other
similar forms of compensation in connection with or in any way related to the
transactions contemplated by this Agreement; provided,
however, that all filing fees with
respect to the HSR Act, if any, shall be borne by Purchaser. Each Party hereto
shall pay its own fees and expenses (including the fees and expenses of its
attorneys, accountants, investment bankers, brokers, financial advisors and
other professionals) incurred in connection with this Agreement and all
transactions contemplated hereby.

9.3   Publicity.   No Party shall issue any press release, written
public statement or announcement relating to this Agreement or the transactions
contemplated hereby without the written prior approval of the other Party in
each instance, except to the extent such disclosure is required by law (in
which case such Party shall use all reasonable efforts to give the other Party
prior written notice thereof).

9.4   Special Tax Provisions.

(a)    Each
Seller shall file all Tax Returns required to be filed by it following the
Closing Date in a timely manner (unless granted an extension by the appropriate
taxing authority, and then in accordance with the terms of such extension), and
shall timely pay all Taxes shown to be due thereon with respect to the period
ending on the Closing Date.

(b)   Each Seller
shall cooperate fully, as and to the extent reasonably requested by Purchaser,
in connection with any audit, litigation or other proceeding with respect to
Taxes, to the extent it affects the Acquired Assets. Such cooperation shall
include the retention and provision of records and information which are
reasonably relevant to any such audit, litigation or other proceeding and
making employees available on a mutually convenient basis to provide additional
information and 

 33
 

explanation of any
material provided hereunder. Each Seller agrees (A) to retain all books
and records with respect to Tax matters pertinent to it relating to any taxable
period beginning before the Closing Date until the expiration of the statute of
limitations (and, to the extent notified by Purchaser, any extensions thereof)
of the respective taxable periods, and to abide by all record retention
agreements entered into with any taxing authority, and (B) to give
Purchaser reasonable written notice prior to transferring, destroying or
discarding any such books and records, and the Sellers shall allow the
Purchaser to copy such books and records.

(c)    All
transfer, documentary, sales, use, stamp, registration and other such Taxes,
and all conveyance fees, recording charges and other fees and charges
(including any penalties and interest) incurred in connection with consummation
of the transactions contemplated by this Agreement shall be paid solely by the
Sellers when due, and each of the Sellers will, at its own expense, file all
necessary Tax Returns and other documentation with respect to all such Taxes,
fees and charges; provided, however,
that all license fees of Purchaser in order to be duly licensed by the
applicable states and other governmental authorities shall be paid solely by
Purchaser.

(d)   Purchaser and Sellers shall negotiate in good faith to agree upon
an “Allocation Statement” (as defined herein). The Parties shall agree on an
Allocation Statement by the Closing Date; provided, however, that if the Parties are unable to agree on the
Allocation Statement prior to the Closing Date, they shall jointly retain an
Audit Firm to resolve any disputed items, and the Allocation Statement shall
reflect such resolution. The costs, fees and expenses of the accounting firm
shall be borne equally by Purchaser, on the one hand, and Sellers, on the other
hand. Purchaser and Sellers shall also negotiate in good faith to agree upon
any revisions to the Allocation Statement to reflect any adjustments to the
consideration for Tax purposes. Purchaser and Sellers shall report the Tax
consequences of the transactions contemplated by this Agreement in a manner
consistent with the Allocation Statement as it may be revised from time to
time, and shall not take any position inconsistent therewith in any examination
of any Tax Return, in any refund claim, in any litigation or investigation or
before any Taxing authority, except as required by applicable law. “Allocation Statement”
means a written document which allocates the Adjusted Purchase Price and the
Assumed Liabilities among the Acquired Assets.

9.5   Employee Matters.

(a)    Each Seller shall use all reasonable business efforts consistent
with the provisions of this Agreement to retain the services of all Employees
(as defined in Section 3.21(a) hereof) through the Closing Date. On
or immediately prior to the Closing Date, Purchaser will offer employment, on
an at will basis, to substantially all Employees who are classified by Seller
as regional or divisional employees, and to such other Employees at its sole
discretion. Such offers of employment shall be for such compensation and other
terms and conditions of employment as determined by Purchaser in its sole
discretion. Each Seller will use good faith efforts to cause each Employee to
accept employment with Purchaser (but no cash payments or other remunerations
are required to be paid by such Seller in such efforts) and will not take any
actions to retain the services of any Employee offered employment by Purchaser.
Employees who accept such offer are, as of the time they first perform services
for Purchaser, referred to herein as the “Transferred Employees,” but such
term specifically does not include James A. Patterson II, J. Douglas Kannapell,
Thomas Dieruf, Patricia Grimes or Marcie Bean (collectively, the “Excluded Employees)”.

(b)   Seller
shall be solely responsible for offering and providing any COBRA coverage (as
required pursuant to Section 4980B of the Code) with respect to any “qualified
beneficiary” who is covered by a Business Employee Plan (as defined in Section 3.20
hereof) that is a “group health plan” (as defined under COBRA) and who
experiences a qualifying event on or prior to the Closing Date. Purchaser shall
be solely responsible for offering and providing any COBRA coverage required
with 

 34
 

respect to any Transferred
Employees (or other “qualified beneficiaries”) who become covered by a group
health plan sponsored or contributed to by the Purchaser and who experience a “qualifying
event” after the Closing Date. “Qualified beneficiary,” “group health plan” and
“qualifying event” are as defined in Section 4980B of the Code.

(c)    To the
extent not prohibited by applicable law, Seller shall provide Purchaser all
information relating to each Transferred Employee as Purchaser may reasonably
require in connection with its employment of such persons, including, without
limitation, initial employment dates, termination dates, reemployment dates,
hours of service, compensation and tax withholding history in a form that will
be usable by Purchaser and such information shall be true and correct in all respects.

9.6   Seller Representative.

(a)    Each Seller and Member Guarantor hereby irrevocably constitutes
and appoints Thomas A. Dieruf, or his successor as determined by Sellers with
prompt written notice to the Purchaser, as the true and lawful agent and
attorney-in-fact (the “Seller Representative”) of such Seller and Member
Guarantor, with full powers of substitution to act in the name, place and stead
of such Seller and Member Guarantor with respect to the performance on behalf
of such Seller and Member Guarantor under the terms and provisions hereof and
to do or refrain from doing all such further acts and things, and to execute
all such documents, as the Seller Representative shall deem necessary or
appropriate in connection with any transaction contemplated hereunder,
including the power to:

(i)          act for such Seller and Member Guarantor with respect to
all indemnification matters referred to herein, including the right to
compromise or settle any such claim on behalf of such Seller and Member
Guarantor relating only to monetary payments which are held under the Escrow
Agreement;

(ii)        amend or waive any non-material
provision hereof (including any condition to the Closing) in any manner that
does not differentiate among any Seller;

(iii)       employ, obtain and rely upon the advice
of legal counsel, accountants and other professional advisors as the Seller
Representative, in the sole discretion thereof, deems necessary or advisable in
the performance of the duties of the Seller Representative;

(iv)        receive any portion of the Purchase
Price or any other payment due from the Purchaser to such Seller pursuant to
this Agreement;

(v)         act for each Seller with respect to all Purchase Price
matters and all Purchase Price adjustments matters referred to herein;

(vi)        act for each Seller with respect to the
Escrow Agreement;

(vii)      incur any expenses, liquidate and withhold
assets received on behalf of such Seller prior to their distribution to such
Seller to the extent of any amount that the Seller Representative deems
necessary for payment of or as a reserve against expenses, and pay such
expenses or deposit the same in an interest-bearing bank account established
for such purpose;

(viii)     receive all notices, communications and
deliveries hereunder on behalf of such Seller and Member Guarantor; and

(ix)        do or refrain from doing any further act
or deed on behalf of such Seller and Member Guarantor that the Seller
Representative deems necessary or appropriate, in the sole discretion of the
Seller Representative, relating to the subject matter hereof as fully and
completely as such Seller and Member Guarantor could do if personally present
and acting and as though any reference to such Seller and Member Guarantor
herein was a reference to the Seller Representative.

 35
 

(b)   The
appointment of the Seller Representative shall be deemed coupled with an
interest and shall be irrevocable, and any other individual or entity may
conclusively and absolutely rely, without inquiry, upon any action of the
Seller Representative as the act of each Seller and Member Guarantor, as
applicable, in all matters referred to herein. Each Seller and Member Guarantor
hereby ratifies and confirms that the Seller Representative shall do or cause
to be done by virtue of the Seller Representative’s appointment as Seller Representative
of such Seller and Member Guarantor. The Seller Representative shall act for
each Seller and Member Guarantor, as applicable, on all of the matters set
forth herein in the manner the Seller Representative believes to be in the
reasonable best interest of such Seller and Member Guarantor, but the Seller
Representative shall not be responsible to any Seller or Member Guarantor for
any loss or damage such Seller may suffer by reason of the performance by the
Seller Representative of the Seller Representative’s duties hereunder, other
than any loss or damage arising from the Seller Representative’s willful
misconduct or gross negligence in the performance of the Seller Representative’s
duties hereunder.

(c)    Each
Seller and Member Guarantor hereby expressly acknowledges and agrees, that the
Seller Representative is authorized to act on behalf of such Seller and Member
Guarantor notwithstanding any dispute or disagreement, and that any individual
or entity shall be entitled to rely on any and all actions taken by the Seller
Representative hereunder without liability to, or obligation to inquire of, any
Seller and Member Guarantor, as applicable. In the event the Seller
Representative resigns or ceases to function in such capacity for any reason
whatsoever, then the successor Seller Representative shall be Donald D.
Buchanan; provided, however,
that in the event for any reason Donald D. Buchanan is removed, unable or
unwilling to perform as the successor Seller Representative, then one of James
A. Patterson II or John S. Dowds, in that order, shall appoint a successor; provided, further,
however, that such Seller Representative may be removed by a majority vote of
the Member Guarantors’ interest as set forth in Schedule 2.
The Sellers (jointly and severally) and each Member Guarantors (severally only
based on and limited to such Member Guarantor’s percentage listed in Schedule 2 of the Purchase Price) shall indemnify and hold
the Seller Representative harmless from and against any and all liabilities,
losses, costs, damages and expenses (including attorneys’ fees) reasonably
incurred or suffered as a result of the performance of the Seller
Representative’s duties hereunder, except to the extent arising from the
willful misconduct or gross negligence of the Seller Representative.

(d)   Notwithstanding
anything to the contrary herein, the Seller Representative shall not be
authorized to modify, amend or waive any material term of this Agreement.

9.7   Non-Competition and
Non-Solicitation.

(a)    Each
Seller (jointly and severally), each Member Guarantor in regards to actions or
inactions by each Seller (severally only based on and limited to such Member
Guarantor’s percentage listed in Schedule 2),
and each Member Guarantor as to its own actions or inactions only, covenants
and agrees that, in consideration of the consummation of the transactions by
Purchaser hereunder, neither it nor any of its affiliates which such person
controls, is controlled by or is under common control with, directly or
indirectly, whether individually, in partnership, jointly or in conjunction
with, or on behalf of, any person or entity, shall for a period of three (3) years
from the Closing Date:

(i)          engage, whether wholly or partly, in
the Business in the following states (the “Restricted Territory”): Alabama, Ohio, Oklahoma, South
Carolina, Kentucky, Colorado, North Carolina, Arkansas, Georgia (unless Georgia
is excluded pursuant to Section 1.6(b of the Separate Purchase Agreement)),
West Virginia, Florida and Tennessee (except with respect to those certain
eight stores owned by Advance Cash, Inc. and its affiliates located in
cities in Tennessee where Sellers do not currently conduct business, provided
that no new stores may be opened and no store may be re-located to a city
different from its current location);

 36
 

(ii)        serve as a director, officer, employee,
consultant, lender (except with respect to an existing loan to someone in the
Industry made by Frank O. Kenner (who may or may not be an affiliate) in the
amount of $100,000), advisor, independent contractor or joint venturer with
respect to an entity that wholly or partly, directly or indirectly, engages in
the Business in the Restricted Territory;

(iii)       directly or indirectly own any equity
interest in (excluding ownership of less than two percent (2%) of the
outstanding common stock of any publicly held corporation), or control any
portion of a business that wholly or partly, directly or indirectly, engages in
the Business in the Restricted Territory other than the Purchaser and its
affiliates; and

(iv)        take any action that is designed or
intended to have the effect of discouraging any customer, supplier, lessor,
licensor or other business associate of any Seller from maintaining the same
business relationship with Purchaser after the Closing Date as it maintained
with such Seller prior to the Closing Date.

(b)   Each Seller
(jointly and severally), and each Member Guarantor in regards to actions or
inactions by each Seller (severally only based on and limited to such Member
Guarantor’s percentage listed in Schedule 2),
and each Member Guarantor as to its own actions or inactions only, covenants
and agrees that, in consideration of the consummation of the transactions by
Purchaser hereunder, neither it nor any of its affiliates which such person
controls, is controlled by or is under common control with, directly or
indirectly, whether individually, in partnership, jointly or in conjunction
with, or on behalf of, any person or entity, shall for a period of two (2) years
from the Closing Date (a) solicit, persuade, encourage or induce any
Transferred Employee to cease employment with or retention by the Purchaser or
its subsidiaries; or (b) hire any Transferred Employee, provided, however, that
this Section 9.7 shall not apply to (i) general solicitations of
employment not specifically directed toward an employee; (ii) any
solicitation or hiring of Mr. Thomas H. Lowe following the expiration of
the first six months of his employment with Purchaser or earlier if Mr. Lowe
and Purchaser agree to an earlier termination; or (iii) any solicitation
or hiring of any Transferred Employee whose employment with Purchaser or its
subsidiaries has been terminated for at least six (6) months.

(c)    Each Seller and Member Guarantor hereby acknowledges and agrees
that the covenants contained in this Section 9.7 (the “Protective Covenants”)
are reasonable as to time, scope and territory given Purchaser’s need to
protect trade secrets and confidential information, and each Seller and Member
Guarantor acknowledges and agrees that Purchaser and its affiliates and
assignees would be irreparably damaged if any Seller or Member Guarantor were
to provide services to or otherwise participate in the Business in the Restricted
Territory and that any such competition by any Seller or Member Guarantor would
result in a significant loss of goodwill by Purchaser and its affiliates and
assignees. In the event any Protective Covenant in this Agreement shall be
determined by any court of competent jurisdiction to be unenforceable by reason
of its extending for too great a period of time or over too great a
geographical area or by reason of its being too extensive in any other respect,
it shall be interpreted to extend only over the maximum period of time for
which it may be enforceable and/or over the maximum geographical area as to
which it may be enforceable and/or to the maximum extent in all other respects
as to which it may be enforceable, all as determined by such court in such
action.

(d)   Each Seller
and each Member Guarantor hereby acknowledges and agrees that any breach of a
Protective Covenant by it will cause irreparable damage to Purchaser, the exact
amount of which will be difficult to determine, and that the remedies at law
for any such breach will be inadequate. Accordingly, each Seller and each
Member Guarantor hereby agrees that, in addition to any other remedy that may
be available at law, in equity, or hereunder, the Purchaser shall be entitled
to specific 

 37
 

performance and injunctive
relief, without posting bond or other security, to enforce or prevent any
violation of any of the Protective Covenants by it.

(e)    Notwithstanding
anything to the contrary in this Section 9.7, no Member Guarantor shall be
liable to Purchaser for the other Member Guarantors’ actions or inactions
(including each of their affiliates which such person controls, is controlled
by or is under common control with, directly or indirectly, whether
individually, in partnership, jointly or in conjunction with, or on behalf of,
any person or entity) relating to such other Member Guarantors’ breach of any
Protective Covenant or any other representation, warranty or covenant.

(f)    The
Parties acknowledge and agree that solely for purposes of this Section 9.7,
“Business” shall mean the deferred deposit business where the loan or advance
was in an amount of $500 or less and where the post-dated check is taken as
collateral for such loan or advance.

9.8   WARN Act.   Each Seller has or will comply with its obligations
pursuant to WARN and all other notification and bargaining obligations arising
under any collective bargaining agreement, statute or otherwise, in each case
to the extent affecting in whole or in part of any site of employment,
facility, operating unit, or employee of a Seller. No Seller shall affect a “plant
closing” or “mass layoff” (as those terms are defined under WARN) at any time
between the date of this Agreement and the Closing Date, affecting in whole or
in part any site of employment, facility, operating unit or employee of a
Seller without complying with all provisions of WARN. Sellers shall be
responsible for providing any notice of layoff or plant closing, if required
pursuant to WARN or any applicable state or local plant closing notification
statute, with respect to any Employees who are not employed by Purchaser or its
affiliates as of the Closing Date and shall maintain such employees on Seller’s
payroll for any period of notice required by WARN and any applicable state or
local plant closing notification statute.

9.9   Access
to Information.   After
the Closing Date, the Member Guarantors, the Sellers and their representatives,
affiliates, managers, members and employees shall have reasonable access to all
of the books and records of Sellers, to the extent that such access may
reasonably be required in connection with matters relating to events on or
prior to the Closing Date, including but not limited to, the preparation of Tax
Returns, and the right to copy all of the same and the use of all originals as
required. Such access shall be afforded by the Purchaser upon receipt of
reasonable advance notice and during normal business hours. If the Purchaser
shall desire to dispose of any of such books and records within seven years
after the Closing Date, the Purchaser shall, prior to such disposition, give
the Seller Representative a reasonable opportunity, at the Sellers’ expense, to
segregate and remove such books and records as Sellers may select.

9.10   Purchaser.   The Purchaser shall represent
and warrant at the Closing to the Sellers and Member Guarantors that it has
been adequately capitalized as provided in Schedule 9.10; provided, however, that Schedule 9.10 may be modified in accordance with Section 1.6(b) of
the Separate Purchase Agreement.

9.11   Renewal
or Extension of Lease.   After
the Closing Date, no option to extend or renew a Real Property Lease shall
occur unless the Sellers are fully released from all obligations and duties
under such Real Property Lease.

ARTICLE
10

INDEMNIFICATION

10.1   Indemnification
by Sellers and Member Guarantors.   Subject
to Sections 10.4 hereof, each of the Sellers, jointly and severally, and the
Member Guarantors severally only and based on and limited to such Member
Guarantor’s percentage listed in Schedule 2
(provided that Member Guarantors’ indemnification liability under this Article 10
as it relates to the items set forth in Section 9.7 shall be limited in
accordance with Section 9.7 and 10.7(b)), shall indemnify, promptly defend
and hold harmless Purchaser and its 

 38
 

affiliates and
subsidiaries, and their respective partners, members, employees, officers,
directors, agents and representatives (collectively, the “Seller Indemnified Parties”),
from and against any and all claims, costs, expenses (including costs of investigation,
attorneys’ fees, accounting fees and court costs), judgments, actions, suits,
proceedings, penalties, fines, damages, losses and liabilities of any kind or
nature incurred by such party, other than as set forth in Section 10.11
(collectively, “Losses,”),
which term shall be deemed to have the same meaning regardless whether
applicable to Purchaser, Sellers or Member Guarantors) relating to, resulting
from or arising out of:

(a)    any breach
of any representation or warranty made by Sellers in Article 3 in this
Agreement or any breach of any representation or warranty made by a Member
Guarantor in Article 2 of this Agreement, but only as to such Member
Guarantor’s own breach;

(b)   any breach
of any covenant or agreement of a Member Guarantor contained in this Agreement,
but each Member Guarantor’s liability hereunder shall apply only as to such
Member Guarantor’s own breach, or any breach of any covenant or agreement of
Sellers contained in this Agreement;

(c)    the
Excluded Liabilities; and

(d)   any obligation
or liability of the Sellers to third parties or governmental agencies which
arose from an act or omission of Sellers that occurred prior to the Closing
Date.

10.2   Indemnification
by Purchaser.   Subject
to Section 10.10, Purchaser shall indemnify, promptly defend and hold
harmless the Sellers and Member Guarantors and their respective affiliates and
subsidiaries, and their respective partners, members, employees, officers,
directors, agents and representatives (collectively, the “Purchaser Indemnified
Parties”), from and against any and all Losses relating to,
resulting from or arising out of:

(a)    any breach
of any representation or warranty made by Purchaser in this Agreement;

(b)   any breach
of any covenant or agreement of Purchaser contained in this Agreement;

(c)    the
Assumed Liabilities, the Assumed Contracts and Leases; and

(d)   any
liability, loss, action, cause of action, claim, lawsuit, investigation and the
like relating to, resulting from or arising out of the Acquired Assets or the
Business that arise out of acts, omissions or other matters that occur on or
after the Closing Date, except as provided in the last sentence of Section 3.11(a)(ii).

10.3   Administration of Third
Party Claims.

(a)    Promptly following receipt by any of the Seller Indemnified
Parties and/or the Purchaser Indemnified Parties (each, an “Indemnified Party”)
of written notice by a third party (including any governmental authority) of
any complaint or the commencement of any audit, investigation, action or
proceeding with respect to which such Indemnified Party may be entitled to
receive payment from the other Party for any Purchaser Losses or Seller Losses,
as the case may be, such Indemnified Party shall notify the Purchaser or the
Sellers and Member Guarantors, as the case may be (the “Indemnifying Party”),
promptly following the Indemnified Party’s receipt of such complaint or of
notice of the commencement of such audit, investigation, action or proceeding; provided, however, that
the failure to so notify the Indemnifying Party shall relieve the Indemnifying
Party from liability hereunder with respect to such claim only if, and only to
the extent that, such failure to so notify the Indemnifying Party results in
the forfeiture by the Indemnifying Party of (or otherwise actually prejudices
any) rights and defenses otherwise available to the Indemnifying Party with
respect to such claim. The Indemnifying Party shall have the right, within
twenty (20) days after such notice from the Indemnified Party, to assume the
defense of such audit, investigation, action or proceeding, including 

 39
 

the
employment of counsel, and the Indemnifying Party shall pay the fees and
disbursements of counsel for the Indemnifying Party as incurred; provided, however, that
the Indemnified Party (at its expense) shall have the right to jointly defend
such defense or action of any nature with the Indemnifying Party. In assuming
the defense (subject to such joint defense with the Indemnified Party as set
forth herein) of such audit, investigation, action or proceeding, the
Indemnifying Party shall use all reasonable efforts to mitigate against any
unnecessary costs or expenses of the Indemnified Party (and vice versa). In the
event, however, that the Indemnified Party declines or fails to join in the
defense of the audit, investigation, action or proceeding on the terms provided
above in either case within such twenty (20) day period, then the Indemnifying
Party shall have the right to conduct the defense of such audit, investigation,
action or proceeding as it solely determines, including the employment of
counsel and the payment of the fees and disbursements of such counsel. In any
audit, investigation, action or proceeding for which indemnification is being
sought hereunder the Indemnified Party or the Indemnifying Party, whichever is
not assuming the defense of such action, shall have the right to participate in
such matter (joint defense) and to retain its own counsel at such Party’s own
expense. The Indemnifying Party or the Indemnified Party (as the case may be)
shall at all times use reasonable efforts to keep the Indemnifying Party or
Indemnified Party, as the case may be, reasonably apprised of the status of the
defense of any matter the defense of which it is maintaining and to cooperate
in good faith with each other with respect to the defense of any such matter.

(b)   No
Indemnified Party may settle or compromise any claim or consent to the entry of
any judgment with respect to which indemnification is being sought hereunder
without the prior written consent of the Indemnifying Party unless such
settlement, compromise or consent includes an unconditional release of the
Indemnifying Party and its officers, directors, employees, members, agents,
representatives and affiliates from all liability (including any liability as a
result of a claim by the Indemnified Party against the Indemnifying Party)
arising out of such claim and does not require any payment or obligation from
the Indemnifying Party. No Indemnifying Party may settle or compromise any
claim or consent to the entry of any judgment with respect to which
indemnification is being sought hereunder without the prior written consent of
the Indemnified Party unless such settlement, compromise or consent (i) includes
an unconditional release of the Indemnified Party and its officers, directors,
employees, members, agents, representatives and affiliates from all liability
(including any liability as a result of a claim by the Indemnifying Party
against the Indemnified Party) arising out of such claim, (ii) does not
contain any admission or statement suggesting any wrongdoing or liability on
behalf of the Indemnified Party, (iii) does not contain any equitable
order, judgment or term that in any manner would affect, restrain or interfere
with the Business in the Purchaser’s hands and (iv) does not require any
payment or obligation from the Indemnified Party.

(c)    In the
event an Indemnified Party claims a right to payment pursuant hereto, such
Indemnified Party shall send written notice of such claim to the appropriate
Indemnifying Party. Such notice shall specify the basis for such claim. The
failure by any Indemnified Party so to notify the Indemnifying Party shall not
relieve the Indemnifying Party from any liability that it may have to such
Indemnified Party with respect to any claim made pursuant to this Section 10.3(c),
except that the failure to so notify the Indemnifying Party shall relieve the
Indemnifying Party from liability hereunder with respect to such claim if such
failure to so notify the Indemnifying Party results in the forfeiture by the
Indemnifying Party of (or otherwise actually prejudices any) rights and
defenses otherwise available to the Indemnifying Party with respect to such
claim. It is understood that notices for claims in respect of a breach of a
representation or warranty must be delivered prior to the expiration of the
survival period for such representation or warranty under Section 10.4(a),
otherwise such claim shall not be deemed valid. In the event the Indemnifying
Party does not notify the Indemnified Party within thirty (30) days following
its receipt of such notice that the Indemnifying Party disputes its liability
to the Indemnified Party under this Article or the amount thereof, the
claim specified by the Indemnified Party in such notice shall be conclusively
deemed a liability of the 

 40
 

Indemnifying Party under
this Article 10 (subject to Section 10.4), and the Indemnifying Party
shall pay the amount of such liability to the Indemnified Party on demand when
such liability or portion of the claim becomes finally determined. In the event
the Indemnifying Party has timely disputed its liability with respect to such
claim as provided above, then as promptly as possible, such Indemnified Party
and the appropriate Indemnifying Party shall establish the merits and amount of
such claim (by mutual agreement, litigation, arbitration or otherwise) and,
within ten (10) business days following the final determination (and after
expiration of all appeals or the expiration of all appeal periods being taken)
of the merits and amount of such claim, if it is determined that the
Indemnifying Party owes any amounts to the Indemnified Party, then the Indemnifying
Party shall pay (subject to Section 10.4) to the Indemnified Party in
immediately available funds in an amount equal to such claim as determined
hereunder.

10.4   Limitations.

(a)    (i)          Subject
to Sections 10.4(d) and 10.7, the representations, warranties and
covenants, made by the Member Guarantors and Sellers shall survive the Closing
only for a period of two (2) years following the Closing Date and then
shall be deemed null and void ab  initio; provided, that any claim made in writing pursuant to this Article 10
in respect of the alleged breach or violation of such representations,
warranties and covenants prior to the expiration of such two (2) year
period shall survive until finally resolved; provided,
further, that the following
representations, warranties and covenants shall survive the Closing and shall
not be subject to the time limitation set forth in this Section 10.4(a)(i):
regarding the obligations of Sellers with respect to Excluded Liabilities, to
discharge the Excluded Liabilities, and the obligations under Section 3.9
(Title to Assets), Section 9.1 (Reasonable Efforts), Section 9.2
(Brokers; Expenses), Section 9.4 (Special Tax Provisions), Section 9.7
(Non-Competition and Non-Solicitation), Section 9.9 (Access to
Information), Section 9.11 (Renewal or Extension of Lease), this Article 10
(Indemnification) and Article 11 (Miscellaneous).

(ii)        Subject to Sections 10.7 and 10.10, the
representations, warranties and covenants, made by the Purchaser shall survive
the Closing only for a period of two (2) years following the Closing Date
and then shall be deemed null and void ab  initio; provided, that any claim made in writing pursuant to this Article 10
in respect of the alleged breach or violation of such representations,
warranties and covenants prior to the expiration of such two (2) year
period shall survive until finally resolved; provided,
further, that the following covenants
shall survive the Closing and shall not be subject to the time limitation set
forth in this Section 10.4(a)(ii) regarding the obligations of the
Purchaser with respect to Assumed Liabilities, to discharge the Assumed
Liabilities,  and the obligations under Section 9.1
(Reasonable Efforts), Section 9.2 (Brokers; Expenses), Section 9.4
(Special Tax Provisions), Section 9.7 (Non-Competition and
Non-Solicitation), Section 9.9 (Access to Information), Section 9.11
(Renewal or Extension of Lease), this Article 10 (Indemnification) and Article 11
(Miscellaneous).

(b)   None of the
Sellers or Member Guarantors shall have any liability for Purchaser Losses
arising under Section 10.1(a) unless and until the aggregate amount
of such Purchaser Losses exceed $22,485 (in the determination of such amount,
materiality standards shall not be taken into account), in which event
Purchaser may claim indemnification for the full amount of all Purchaser Losses
from the Sellers and the Member Guarantors (as applicable), over and above such
$22,485 amount but specifically subject to the limitations set forth in this
Agreement; provided, however,
that the $22,485 as referenced in this Section 10.4(b) shall not
apply as to violations of Sections 2.2 and 3.2 (Power and Authority), Section 3.9
(Title to Assets), Section 1.1 (Purchase of Assets), Section 1.7
(Adjustments to Purchase Price) and Section 9.7 (Non-Competition and
Non-Solicitation).

 41

(c)    Subject to
Section 10.4(d), in no event shall the aggregate liability of the Sellers
and Member Guarantors for Purchaser Losses arising under Section 10.1(a) exceed
(i) $693,376for the one
year period following the Closing Date, and (ii) $346,688with respect to claims made by
Purchaser in writing on Sellers and Member Guarantors thereafter during the
second year after the Closing Date and thereafter there shall be no liability
by the Sellers or Member Guarantors to the Purchaser unless otherwise explicitly
provided herein; provided,however, in no event shall the aggregate
liability of the Sellers and Member Guarantors for Purchaser Losses arising
under Section 10.1(a) exceed $693,376, except as provided in Section 10.4(d) and Section 10.7.
Any amount paid to Purchaser pursuant to the Escrow Agreement as a result of a
breach of representation, warranty or covenant, as described in Section 10.1(a) or
(b), shall reduce the amount that may be recovered against the Sellers and
Member Guarantors under this Section 10.4(c). Except as contemplated in Section 10.7,
any amount paid by Sellers and/or the Member Guarantors as a result of a breach
of representation, warranty or covenant, as described in Section 10.1(a) or
(b), or pursuant to the Escrow Agreement as a result of a breach of
representation, warranty or covenant, as described in Section 10.1(a) or
(b), shall reduce the amount that may be recovered against them under Section 10.4(d).

(d)   Notwithstanding
any provision contained in this Agreement to the contrary, the limitations
contained in Sections 10.4(a)(i) and 10.4(c) hereof shall not apply
with respect to any breach by any Seller or Member Guarantor of:

(i)          Sections 2.2 and 3.2 (Power and Authority);

(ii)        Section 3.6 (Financial Statements—other
than as contemplated by Section 3.6(b) but subject to Section 3.11(a)(ii) and
the last sentence of 3.15(a));

(iii)       Section 3.9 (Title to Assets);

(iv)        Section 3.11 (Notes and Receivables—other
than as contemplated by Section 3.11(a)(ii), but subject to the last sentence
of 3.15(a));

(v)         Section 3.14 (Litigation—but only to the extent of
judgments against Purchaser by third parties or governmental agencies with
respect to acts or omissions of Sellers that occurred prior to the Closing
Date);

(vi)        Section 3.15(a) (Compliance
with Laws—other than as contemplated therein, but subject to Section 3.11(a)(ii));

(vii)      Section 3.16 (Permits and Licenses—other
than as contemplated therein);

(viii)     Section 3.17 (Taxes); and

(ix)        Discharging the Excluded Liabilities;

provided, however, that
for purposes of this Section 10.4(d) such provisions shall be read as
though none of them contained more than one Material Adverse Effect,
materiality or knowledge qualifier; provided, further, that any liability of the Sellers and Member Guarantors,
in the aggregate, and subject to each Member Guarantor’s percentage limitation
set forth in Schedule 2, under this Section 10.4(d) or
otherwise under this Agreement (but in all events subject to Sections 9.7,
10.4(a)(i), (b) and (c), and 10.7) shall not exceed the Purchase Price
minus the $22,485 as referenced in Section 10.4(b).

10.5   Rights
Under Escrow Agreement.   In the event any Seller or Member Guarantor has any
liability to Purchaser pursuant to Section 10.1 hereof for any Purchaser
Losses, in addition to any other rights and remedies Purchaser may have,
Purchaser shall be entitled to payment thereof under the Escrow Agreement (but
there shall be no duplicate payments to Purchaser) and all indemnity claims
relating to a breach of a representation, warranty or covenant of the Sellers
and Member Guarantors (other than pursuant to Section 1.1 (Purchase of
Assets), Section 1.7 (Adjustments to Purchase Price) and Section 9.7 

 42
 

(Non-Competition
and Non-Solicitation)) shall be first paid from the escrow pursuant to the
Escrow Agreement to the extent of any funds therein.

10.6   Payments.   All
payments made under this Article 10 shall be deemed adjustments to the
Purchase Price.

10.7   Exclusive Remedy.

(a)    Notwithstanding
anything to the contrary contained in this Agreement, the sole and exclusive
remedy available to the Parties against the other Parties hereto from and after
the date hereof for any and all claims arising under this Agreement, whether a
remedy otherwise could have been sought on the basis of contract,
quasi-contract, negligence, tort, strict liability or absolute liability
(whether statutory or common law) or otherwise and regardless of whether or to
what extent any statue or common law may provide, shall be indemnification
pursuant to this Article 10; provided, however, that this Section 10.7 shall not preclude or
otherwise limit the assertion of any right or remedy for specific performance
or other equitable relief, including specific performance, of the Protective
Covenants; provided, further,
that Purchaser may pursue any right or remedy for a claim of fraud against
Sellers or Member Guarantors (jointly, not severally, and in any event each
such Member Guarantor shall be liable for only its own fraud and not for any
other fraud of another party to this Agreement) and recover all amounts due
therefor without any limitations imposed on such amounts (including, without
limitation, the limitations imposed by Section 10.4 or Section 10.11)
to the extent Purchaser can establish by the appropriate standard in a court of
competent jurisdiction that Sellers, jointly and severally, and  each Member Guarantor, severally and in any
event each such Member Guarantor shall be liable for only its own fraud and not
for any other fraud of another party to this Agreement, have committed fraud
against the Purchaser with respect to this Agreement and the transactions
contemplated hereby; provided, further, that Sellers or the Member Guarantors may pursue
any right or remedy for a claim of fraud against the Purchaser and recover all
amounts due therefor without any limitations imposed on such amounts
(including, without limitation, the limitations imposed by Section 10.10)
to the extent the Sellers or Member Guarantors can establish by the appropriate
standard in a court of competent jurisdiction that the Purchaser has committed
fraud against the Sellers or the Member Guarantors with respect to this
Agreement and the transactions contemplated hereby.

(b)   Notwithstanding
anything to the contrary contained in this Agreement, Purchaser may pursue any
right or remedy for a claim of a breach of the Protective Covenants set forth
in Section 9.7, jointly and severally against Sellers, against each Member
Guarantor severally and only based on and limited to such Member Guarantor’s
percentage listed in Schedule 2 for
actions of the Sellers, and against each Member Guarantor as to its own actions
or inactions only but without regard to such Member Guarantor’s percentage
listed in Schedule 2, and recover all amounts due
therefore without any limitations imposed on such amounts (including, without
limitation, the limitations imposed by Section 10.4 or Section 10.11)
other than as set forth in this Section 10.7(b). Notwithstanding anything
to the contrary herein except as set forth in Sections 9.7 and 10.7, all
Parties hereto acknowledge that the total liability of a Member Guarantor under
this Agreement for any cause of action whatsoever, shall in the aggregate, in
all events be limited to such Member Guarantor’s percentage of the Purchase
Price set forth in Schedule 2.

10.8   Books and Records.   The Indemnified Party shall make available to the
Indemnifying Party and its counsel and accountants at reasonable times and for
reasonable periods, during normal business hours, all books and records of the
Indemnified Party relating to any such possible claim for indemnification, and
each Party hereunder shall render to the other such assistance as it may
reasonably require of the other in order to insure prompt and adequate defense
of any suit, claim or proceeding based upon a state of facts which may give
rise to a right of indemnification hereunder.

 43
 

10.9   Tax
and Insurance Benefit.   The amount of any Loss for which indemnification is
provided under this Article 10 shall be (i) net of any amounts
actually recovered, if any, by the Indemnified Party under any insurance
policies with respect to such Loss and taking into account any premium
adjustments (retrospective or otherwise for the appropriate period of time as
determined by the Parties or a court) proximately caused by the making of such
claim under any insurance policies; and (ii) reduced or increased to take
account of any net Tax benefit or Tax cost realized by the Indemnified Party
proximately caused by the incurrence or payment of any such Loss, in each case
when and as such Tax cost or Tax benefit is actually realized through an
increase or reduction of Taxes otherwise due; provided, however,
that any amounts actually recovered pursuant to any insurance policies and any
reduction as a result of any net Tax benefit realized by the Indemnified Party
shall not be counted for purposes of calculating the limit on indemnification
set forth in Sections 10.4(c) and 10.4(d) (which means that it shall
not reduce the amount of Losses on which Sellers shall be obligated to make
payments pursuant to such Sections).

10.10   Limitation
on Purchaser’s Liability.

(a)    Except as
provided in Section 10.4(a)(ii), Section 10.7 or Section 10.10(b),
the liability of the Purchaser to the Sellers and the Member Guarantors for any
breaches of its representations, warranties and covenants made by the Purchaser
in connection with this Agreement shall be limited to $693,376for the one year period following the
Closing Date, and (ii) $346,688with
respect to claims made by Sellers or Member Guarantors in writing on Purchaser
thereafter during the second year after the Closing Date and thereafter there
shall be no liability by the Purchaser to the Sellers or Member Guarantors
unless otherwise explicitly stated herein.

(b)   Notwithstanding
any provision contained in this Agreement to the contrary, the dollar
limitations contained in Section 10.10(a) shall not apply with
respect to any breach by the Purchaser of (i) Section 4.2 (Power and
Authority), (ii) Section 4.5 (Litigation), and (iii) discharging
the Assumed Liabilities; provided, further, that any liability of the Purchaser to the Sellers
or the Member Guarantors, in the aggregate, under this Section 10.10 or
otherwise under this Agreement, except for a cause of action relating to fraud
as set forth in Section 10.7, shall not exceed the Purchase Price.

10.11   Losses.   Notwithstanding
anything to the contrary herein and subject to Section 10.7, Losses (as
defined in Section 10.1) shall not include claims, costs, expenses
(including costs of investigation, attorneys’ fees, accounting fees and court
costs), judgments, actions, suits, proceedings, penalties, fines, damages,
losses and liabilities of any kind or nature resulting from (i) any
Adverse Occurrence, (ii) any change or decrease in CompuCredit Corporation’s
or the Purchaser’s or affiliates’ equity price, (iii) any adverse
publicity with respect to the Industry, (iv) punitive damages, (v) exemplary
damages, (vi) speculative damages, (vii) consequential damages, (viii) or
any other damages other than actual damages or (ix) special damages, except
as specifically provided in the following sentence. Provided,
however, subject to all of the other
limitations set forth in this Section 10, the Purchaser shall be entitled
to bring a lawsuit to recover from the Sellers and Member Guarantors (based on and
limited to such Member Guarantor’s percentage listed in Schedule 2),
the greater of (i) actual damages or (ii) special damages resulting
from a breach of warranty, representation or covenant of the Sellers contained
in this Agreement, but only to the extent such breach causes a permanent loss
of earnings in the Business in Purchaser’s hands, but such special damages
shall be strictly limited to the (x) actual loss of that portion of the one
year’s worth of Earnings Before Interest Taxes Depreciation and Amortization,
as reflected on the Initial Financial Statements for the period ending December 31,
2003, that directly result from such breach by the Sellers, multiplied by (y)
five and two tenths (5.2); further, provided, however, the
Purchaser shall use its commercially reasonable efforts to mitigate all Losses.

 44
 

ARTICLE
11

MISCELLANEOUS

11.1   Notices.

(a)    All notices, consents, requests and other communications
hereunder shall be in writing and shall be sent by hand delivery, by certified
or registered mail (return-receipt requested), by a recognized national
overnight courier service or telecopied as set forth below:

	
  If to Purchaser:

  	
  Valued Services Acquisitions Company, LLC

  
	
   

  	
  245 Perimeter
  Center Parkway

  
	
   

  	
  Suite 600

  
	
   

  	
  Atlanta, Georgia
  30346

  
	
   

  	
  Attention:
  President

  
	
   

  	
  Fax: (770) 206-6187

  
	
  with a copy to:

  	
  Valued Services
  Acquisitions Company, LLC

  
	
   

  	
  245 Perimeter
  Center Parkway

  
	
   

  	
  Suite 600

  
	
   

  	
  Atlanta, Georgia
  30346

  
	
   

  	
  Attention:
  General Counsel

  
	
   

  	
  Fax: (770) 206-6183

  
	
  and a copy to:

  	
  Troutman Sanders LLP

  
	
   

  	
  600 Peachtree
  Street, N.E., Suite 5200

  
	
   

  	
  Atlanta, Georgia
  30308

  
	
   

  	
  Attention: Andrea
  M. Farley

  
	
   

  	
  Fax: (404) 962-6555

  
	
  If to any Seller
  or

  	
   

  
	
  Member Guarantor:
  

  	
  Seller Representative

  
	
   

  	
  Thomas A. Dieruf

  
	
   

  	
  10000 Shelbyville
  Road

  
	
   

  	
  Louisville, Kentucky
  40223

  
	
   

  	
  Fax: (502) 245-4792

  
	
  with a copy to:

  	
  Michael M. Fleishman

  
	
   

  	
  Greenebaum
  Doll & McDonald PLLC

  
	
   

  	
  101 South Fifth
  Street

  
	
   

  	
  3500 National
  City Tower

  
	
   

  	
  Louisville, KY
  40202

  
	
   

  	
  Fax: (502) 540-2131

  
	
  with a copy to:

  	
  Sharon L. McBrayer

  
	
   

  	
  Womble Carlyle
  Sandridge & Rice, PLLC

  
	
   

  	
  One Atlantic
  Center

  
	
   

  	
  1201 West
  Peachtree Street, Suite 3500

  
	
   

  	
  Atlanta, GA 30309

  
	
   

  	
  Fax: (404) 888-7490

  

 

(b)   Notices delivered pursuant to Section 11.1(a) shall be
deemed given: (i) on the date delivered, if personally delivered or
telecopied (with confirmation); (ii) at the time received, if mailed; and (iii) two
(2) business day after timely delivery to the courier, if by overnight
courier service.

 45
 

(c)    Any Party
hereto may change the address to which notice is to be sent by written notice
to the other Party in accordance with this Section 11.1.

11.2   Entire Agreement.   This Agreement, including all schedules and exhibits
hereto (all of which are incorporated herein by this reference into this
Agreement), contains the entire agreement and understanding concerning the
subject matter hereof among the Parties and specifically supersedes any other
agreement or understanding among the Parties related to the subject matter
hereof, including that certain Letter of Intent dated as of December 29,
2003; provided, that
the provisions of that certain Confidentiality Agreement between Purchaser and
First American Holding, dated October 13, 2003, shall remain in full force
and effect.

11.3   Waiver;
Amendment.   No waiver, termination or discharge of this
Agreement, or any of the terms or provisions hereof, shall be binding upon any
Party unless confirmed in writing. No waiver by any Party of any term or
provision of this Agreement or of any default hereunder shall affect such Party’s
rights thereafter to enforce such term or provision or to exercise any right or
remedy in the event of any other default, whether or not similar. This
Agreement may not be modified or amended except by a writing executed by all
Parties.

11.4   Severability.   If
any provision of this Agreement shall be held void, voidable, invalid or
inoperative, no other provision of this Agreement shall be affected as a result
thereof, and, accordingly, the remaining provisions of this Agreement shall
remain in full force and effect as though such void, voidable, invalid or
inoperative provision had not been contained herein.

11.5   Governing Law.   This
Agreement shall be governed by and construed in accordance with the laws of the
Commonwealth of Kentucky, without regard to the principles of conflicts of
laws.

11.6   Assignment.   No Party may assign this
Agreement, in whole or in part, without the prior written consent of the other
Party, and any attempted assignment not in accordance herewith shall be null
and void and of no force or effect; provided, that Purchaser may assign its rights under this Agreement to
any subsidiary or affiliate, but no such assignment shall relieve Purchaser of
its obligations hereunder.

11.7   Binding Effect.   This
Agreement shall be binding upon and shall inure to the benefit of the Parties
and their respective heirs, representatives, successors and permitted assigns.

11.8   Headings.   The
titles, captions and headings contained in this Agreement are inserted for
convenience of reference only and are not intended to be a part of or to affect
in any way the meaning or interpretation of this Agreement.

11.9   References
within Agreement.   Numbered or lettered articles, sections, paragraphs,
subsections and schedules herein contained refer to articles, sections,
paragraphs, subsections, and schedules and exhibits of this Agreement unless
otherwise expressly stated. The words “herein,” “hereof,” “hereunder,” “hereby,”
“this Agreement” and other similar references shall be construed to mean and
include this Agreement and all amendments to this Agreement unless the context
shall clearly indicate or require otherwise. The word “including” (and all
derivations thereof) shall be construed to mean “including, without limitation.”

11.10   Interpretation.   This Agreement shall not be construed more strictly
against any Party hereto regardless of which Party is responsible for its
preparation.

11.11   Further
Assurances.   Upon the reasonable request of the any Party, each
Party agrees to take any and all actions, necessary or appropriate to give
effect to the terms and conditions set forth in this Agreement.

11.12   Counterparts;
Fax Signatures.   This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute the same 

 46
 

Agreement. Any
signature page of any such counterpart, or any electronic facsimile
thereof, may be attached or appended to any other counterpart to complete a
fully executed counterpart of this Agreement, and any telecopy or other
facsimile transmission of any signature shall be deemed an original and shall
bind such Party.

11.13   Knowledge.   Sellers
shall be deemed to have “Knowledge”
of a particular fact or other matter if (i) J. Douglas Kannapell, James A.
Patterson II, Thomas A. Dieruf, Thomas H. Lowe, or any officer, divisional
manager or regional director of any Seller, or (ii) solely relating to Tax
matters, any employee responsible for Tax matters, (A) is actually aware
of such fact or other matter, or (B) a prudent individual would be
expected to discover or otherwise become aware of such fact or other matter in
the course of conducting their duties in a reasonable and customary manner in
the ordinary course of business within his or her function and responsibility.

* * * * * * *

 47

IN
WITNESS WHEREOF, the undersigned have executed, or have caused their respective
duly authorized representatives to execute, this Agreement as of the date first
written above.

	
  

  	
  “Purchaser”

  
	
   

  	
  Valued Services Acquisitions
  Company, LLC

  
	
   

  	
  By:

  	
  /s/ Jerry L. Robinson

  	
   

  
	
   

  	
  Name:

  	
  Jerry L. Robinson

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
  “Sellers”

  
	
   

  	
  First American Services of
  Kentucky, LLC

  
	
   

  	
   

  	
  By:

  	
  P&K Enterprises, LLC

  
	
   

  	
   

  	
  Its Manager

  
	
   

  	
   

  	
  By:

  	
  /s/ J. Douglas Kannapell

  	
   

  
	
   

  	
   

  	
   

  	
  J. Douglas Kannapell

  
	
   

  	
   

  	
   

  	
  Manager

  
	
   

  	
  First American Services of West
  Virginia, LLC

  
	
   

  	
   

  	
  By:

  	
  P&K Enterprises, LLC

  
	
   

  	
   

  	
  Its Manager

  
	
   

  	
   

  	
  By:

  	
  /s/ J. Douglas Kannapell

  	
   

  
	
   

  	
   

  	
   

  	
  J. Douglas Kannapell

  
	
   

  	
   

  	
   

  	
  Manager

  
											

 

 

	
  

  	
  “Member Guarantors”

  
	
   

  	
  /s/ James A. Patterson II

  	
   

  
	
   

  	
  James A. Patterson II

  	
   

  

 

 

	
  

  	
  “Member Guarantors”

  
	
   

  	
  /s/ J. Douglas Kannapell

  	
   

  
	
   

  	
  J. Douglas Kannapell

  	
   

  

 

 

	
  

  	
  “Member Guarantors”

  
	
   

  	
  /s/ Donald D. Buchanan

  	
   

  
	
   

  	
  Donald D. Buchanan

  	
   

  

 

 

	
  

  	
  “Member Guarantors”

  
	
   

  	
  /s/ Thomas A. Dieruf

  	
   

  
	
   

  	
  Thomas A. Dieruf

  	
   

  

 

 

	
  

  	
  “Member Guarantors”

  
	
   

  	
  /s/ John S. Dowds

  	
   

  
	
   

  	
  John S. Dowds

  	
   

  

 

 

	
  

  	
  “Member Guarantors”

  
	
   

  	
  /s/ Charlotte Elam

  	
   

  
	
   

  	
  Charlotte Elam

  	
   

  

 

 

	
  

  	
  “Member Guarantors”

  
	
   

  	
  /s/ Karen S. Kramer

  	
   

  
	
   

  	
  Karen S. Kramer

  	
   

  

 

 

	
  

  	
  “Member Guarantors”

  
	
   

  	
  /s/ William E. Lawrence III

  	
   

  
	
   

  	
  William E. Lawrence III

  	
   

  

 

 

	
  

  	
  “Member Guarantors”

  
	
   

  	
  /s/ Drew P. Haney

  	
   

  
	
   

  	
  Drew P. Haney

  	
   

  

 

 

	
  

  	
  “Member Guarantors”

  
	
   

  	
  First American Holding, LLC

  
	
   

  	
   

  	
  By:

  	
  First American
  Management, Inc.

  
	
   

  	
   

  	
  Its Manager

  
	
   

  	
   

  	
  By:

  	
  /s/ Thomas H. Lowe

  	
   

  
	
   

  	
   

  	
   

  	
  Thomas H. Lowe, PresidentExhibit
10.3

 

April 1, 2004

 

 

Mr Richard Steele

213 Station Road

Knowle

SOLIHULL B93 0PU

 

 

Dear Richard

 

Variation
to Service Agreement

 

This letter confirms a
variation to your terms and conditions of employment.  The letter is intended to supplement and not
replace the Service Agreement between Combined Distribution (Holdings) Limited
and you, dated 1 March 2002 (the “Service Agreement”), which will continue
to apply to you.  Changes/amendments to
the Service Agreement are set out below. 
Where no changes/amendments are noted, the provisions of the Service
Agreement remain in force.

 

The following clauses
will replace those of the same number in the Service Agreement:

 

3.1           The Employment shall
commence on 1 March 2002 and, unless terminated in accordance with clause
12 (Termination of and suspension from Employment), shall continue for a fixed
period, to terminate on 31 March 2006. 
The parties will negotiate a mutually agreeable transition plan in the
event that they are unable to agree to a further extension to the Service
Agreement.  Nothing in this agreement
precludes the Executive from pursuing statutory termination or redundancy
benefits, if available, in the event that the Company does not exercise the
option to extend the fixed term or otherwise terminates the Executive without
cause as defined in clause 12.

 

7.1           During his employment the Company shall pay to
the Executive:

 

(a)           a basic salary at the rate of £216,000 per annum.  This salary shall accrue from day to day, be
payable by equal monthly instalments in arrears on or about the last Friday of
each month and shall include any fees to which the Executive is entitled as a
director of any Group Company;

 

Stock
Options

 

You will be granted
further stock options under the terms of Activision Inc.’s existing or modified
stock option plan as follows:

 

A grant of 200,000 stock
options effective as of 29 April 2004.  Such options will have an exercise price of
US$13.75 and will vest per the terms of the specific Stock Option Agreement on
1 April 2005, 1 April 2006 and 1 April 2007.  These stock options are in addition to the
existing stock options granted under the terms of the Service Agreement at
clause 9.4 and are granted under and governed by the terms and conditions of
the Company’s Stock Option Plan and the Option Agreement.

 

 

The terms of this letter come into force with
immediate effect.

 

Please sign and date
below where indicated to acknowledge your acceptance of the variation of the
terms of your Service Agreement and return the signed copy to me at your
earliest convenience.

 

Yours sincerely

 

 

/s/ Ronald Doornink

 

 

Signed for and on behalf
of COMBINED DISTRIBUTION (HOLDINGS) LIMITED

 

 

	
  /s/ Ronald Doornink

  	
   

  	
   

  	
  4/1/04

  	
   

  
	
  Director

  	
   

  	
   

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signed by RICHARD STEELE

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Richard Steele

  	
   

  	
   

  	
  30/7/04

  	
   

  
	
  RICHARD STEELE

  	
   

  	
   

  	
  Date

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