Document:

Exhibit 10.3

 

EMPLOYMENT AGREEMENT

FOR THE

EXECUTIVE VICE PRESIDENT AND

CHIEF MARKETING OFFICER

 

November 15, 2018

 

    	 	 	 

     

    

 

EXECUTIVE AGREEMENT

 

Agreement made this 15th day of November
2018 between FEDERAL LIFE GROUP, INC., a Pennsylvania corporation, FEDERAL LIFE INSURANCE COMPANY, an Illinois stock life insurance
company, and any subsidiaries or affiliates (hereinafter referred to as the “Corporation”) and MICHAEL AUSTIN (hereinafter
sometimes referred to as the “Executive Vice President”).

 

Michael Austin was presently employed by the
Federal Life Insurance Company as its Executive Vice President and Chief Marketing Officer pursuant to an executive agreement dated
March 3, 2010 (the “Prior Employment Agreement”).

 

The Board of Directors of the Corporation desires
to provide for the continued employment of the Executive Vice President which the Board has determined will be in the best interests
of the policyholders of Federal Life Insurance Company and the Corporation and will enforce and encourage the continued attention
and dedication of the Executive Vice President to the Corporation. The Executive Vice President is willing to commit himself to
continue to serve the Corporation on the terms and conditions herein provided.

 

In order to effect the foregoing, the Corporation
and the Executive Vice President wish to enter into an agreement on the terms and conditions set forth below.

 

Accordingly, in consideration of the promises
and the respective covenants and agreements herein contained, in further consideration of services performed and to be performed
by the Executive Vice President and intending to be legally bound, the parties hereto agree as follows:

 

		1.	Employment.

 

		A.	The Corporation agrees to employ the Executive Vice President as Executive Vice President and Chief Marketing Officer of the
Corporation after the conversion and the Executive Vice President agrees to serve in such rule during the term of employment as
set forth in this Agreement.

 

		B.	If at any time during the term of employment, the Board of Directors of the Corporation fails to re-elect the Executive Vice
President, or removes the Executive Vice President from such office at any time during the term of this Agreement, the Executive
Vice President shall have the right, by written notice to the Corporation, to terminate his services hereunder effective as of
the last day of the month following the receipt by the Corporation of any such written notice and the Executive Vice President
shall have no other obligations under this Agreement. The Executive Vice President’s termination of services under this Paragraph
shall be treated as a termination of employment by the Corporation other than for material breach or just cause on the Executive
Vice President’s part and, accordingly, shall be governed by the provisions of Paragraph 7A of this Agreement.

 

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		2.	Term of Employment.

 

The initial term of employment, as this phrase is used throughout
this Agreement, shall be for the period beginning on the date of this Agreement and ending three (3) years thereafter consistent
with the provisions of Chapter 215 ILCS 5/245, as it exists at the time this Agreement is executed. This Agreement is
automatically extended each day for an additional day except that a notice of non-extension may be given at any time by the Board
of Directors of the Corporation in which case the term of employment will expire at the end of its then current term.

 

		3.	Executive Vice President’s Duties During Term of Employment.

 

The Executive Vice President shall devote his full business
time (with allowances for vacations and sick leave) and attention and best efforts to the affairs of the Corporation during the
term of employment; provided, however, that he may serve as a director of other corporations and entities and may engage in other
activities to the extent that they do not inhibit the performance of his duties hereof or conflict with the business of the Corporation.

 

		4.	Compensation.

 

The Executive’s base salary shall be Two Hundred Forty-Five
Thousand Eight Hundred Sixty-One Dollars ($245,861). The Executive Vice President’s base salary will be determined each year
by the Corporation’s Board of Directors Compensation Committee at its annual meeting (but shall not be less than the amount
set forth herein) and will be paid in substantially equal monthly installments plus a bonus determined annually by the Compensation
Committee based upon determination of the Compensation Committee as to the performance of the Executive Vice President. Any annual
increase to the base salary shall become the base salary as set forth herein.

 

		5.	Other Benefits.

 

In addition to the compensation provided for herein, the
Executive Vice President shall be entitled to participate in any and all employee benefit programs of the Corporation as currently
in effect. Further, the Executive Vice President shall be entitled to receive prompt reimbursement for all expenses which he deems
reasonably incurred by him in performing services hereunder provided such expenses are incurred and accounted for in accordance
with the policies and procedures presently established by the Corporation.

 

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		6.	Counsel Fees and Indemnification.

 

		A.	In the event that: (1) the Corporation terminates or seeks to terminate this Agreement alleging as justification for such
termination a material breach by the Executive Vice President or causes hereinafter set forth and the Executive Vice President
disputes such termination or attempted termination; and/or (2) the Executive Vice President elects to terminate his services
hereunder pursuant to Paragraph 1B of this Agreement; the Corporation disputes its obligations to pay to the Executive Vice
President that portion of his base salary as hereinafter provided; the Corporation shall pay or reimburse to the Executive Vice
President all reasonable costs incurred by him in such dispute, including attorney’s fees and costs providing the Executive
Vice President shall prevail in such action.

 

		B.	The Corporation further represents and warrants: (1) that the Executive Vice President is and shall continue to be covered
and insured up to the maximum limits provided by all insurance that the Corporation maintains to indemnify their directors and
officers, and (2) that the Corporation will exert their best efforts to maintain such insurance at least at its present limits
in effect throughout the term of the Executive Vice President’s employment.

 

		C.	The Corporation hereby warrants and represents that the undertakings of payment indemnification and maintenance of such insurance
coverage for the Executive Vice President set out above are not in conflict with the charter of the Corporation or its By-Laws
or with any validly existing agreement or other proper corporate action of the Corporation.

 

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		7.	Termination.

 

		A.	Termination by the Corporation other than for Material or Just Cause.

 

If the Corporation shall terminate the Executive Vice
President’s employment during the term of employment for other than a material breach of this Agreement or “just cause”,
as herein defined, the Executive Vice President shall have no obligation to seek other employment in mitigation of damages in respect
of any period following the date of such termination and the Executive Vice President shall be entitled to receive from the Corporation
the full base salary to which he is then entitled to the end of the term of employment which shall be payable to the Executive
Vice President in monthly installments without regard to, or reduction because of, any other compensation or income which the Executive
Vice President receives or is entitled to receive whether from the Corporation or otherwise. It is stipulated that any payments
made in accordance with the foregoing shall be paid to and received by the Executive Vice President as liquidated damages for the
unwarranted termination of his employment and not as penalties and he shall be entitled to receive no further sums under this Agreement
except as such that have accrued as of the date of termination or as otherwise specifically provided in this Agreement. In view
of the fact that the term of this Agreement is for three (3) years pursuant to the provisions of the aforesaid described Chapter 215
ILCS 5/245, it is contemplated that the payments provided to be made by virtue of this provision shall be completed at the
expiration of three (3) years from the date of such termination.

 

It is further understood that coverage under the Home
Office Employees’ Group Health Plan during the period when payments are being made under this paragraph or Paragraph 7C
will continue at the same price as if employment had continued.

 

		B.	Termination by the Corporation for Material Breach or for Just Cause.

 

“Just cause” shall mean willful misconduct,
dishonesty, conviction of (or plea of nolo contendere to) a felony, habitual drunkenness or excessive absenteeism not related to
illness. Should the Executive Vice President’s employment be terminated by the Corporation for a material breach of this
Agreement or for “just cause”, the Corporation shall be obligated to pay the Executive Vice President his then base
salary only through the end of the month during which such termination occurs plus such other sums as are payable to the Executive
Vice President under this Agreement and which have accrued as of the end of such month.

 

The termination of employment of the Executive Vice President
shall not be deemed to be for “Just cause” unless and until there shall have been delivered to the Executive Vice President
a copy of a resolution duly adopted by the affirmative vote of not less than 66% of the entire membership of the Corporation’s
Board (excluding the Executive Vice President) at a meeting of the Board called and held for such purpose (after reasonable notice
is provided to the Executive Vice President and the Executive Vice President is given an opportunity, together with counsel, to
be heard before the Board) finding that, in the good faith opinion of the Board, the Executive Vice President is guilty of the
conduct described above, and specifying the particulars thereof in detail.

 

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		C.	Termination by the Executive Vice President.

 

Without prejudice to the provisions of Paragraph 1B of
this Agreement, it is agreed that if during the term of employment the Executive Vice President resigns employment for “Good
Reason”. Any such resignation shall not be deemed to be a material breach by the Executive of this Agreement.

 

The term “Good Reason” shall mean (i) a material
diminution in salary, (ii) a material diminution in authority, duties or responsibilities, or (iii) a reassignment which assigns
full-time employment duties to Executive Vice President at a location more than fifty (50) miles from the Corporation’s principal
executive office on the date of this Agreement, in all cases after notice from Executive Vice President to the Corporation within
ninety (90) days after the initial existence of any such condition that the condition constitutes Good Reason and the failure of
the Corporation to cure such situation within thirty (30) days after said notice.

 

It is further agreed that upon such resignation, except
for obligations of either party to the other which have accrued as of the date of the Executive Vice President’s resignation
or as otherwise specifically provided in this Agreement, the Executive Vice President shall be entitled to receive the compensation
provided under Paragraph 7A of this Paragraph 7 as if such termination was by the Corporation other than for material breach or
other just cause. It is provided, however, that the Executive Vice President’s obligation of non-disclosure as provided in
Paragraph 11 of this Agreement shall remain undiminished and in full force and effect and the obligation of the Executive Vice
President under Paragraph 8 of this Agreement not to compete shall continue for the period during which payments continue to be
made to the Executive Vice President under the provisions of Paragraph 7A.

 

		8.	Non-Competition.

 

		A.	Except as is otherwise provided in Paragraph 7C, it is agreed that during the term of employment and during any period
in which the Executive Vice President is receiving compensation as provided in Paragraphs 4 and 7, the Executive Vice President
will not without the prior approval of the President and Chief Executive Officer of the Corporation become an officer, employee,
agent, partner or director of any business enterprise which is in substantial direct competition (as defined below) with the Corporation,
as the business of the Corporation may be constituted during the term of employment or at the termination thereof.

 

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		B.	If the Executive Vice President’s employment by the Corporation is terminated by the Executive Vice President during
the term of employment, the Executive Vice President shall not during the period in which he is compensated under the provisions
of Paragraphs 7A and 7C following such termination become an officer, employee, agent, partner or director of any business
enterprise in substantial direct competition with the Corporation, as the business of the Corporation may be constituted at the
time of such termination.

 

		C.	For the purpose of this Paragraph 8, a business enterprise with which the Executive Vice President becomes associated
as an officer, employee, agent, partner or director shall be considered in “substantial direct competition” if during
a year when such competition is prohibited its sales of any product or service which is competitive with a product or service furnished
by the Corporation amount to more than ten percent (10%) of the Corporation’s total combined sales of their product or services.
This provision shall be effective during the period in which the Executive Vice President is receiving payments from the Corporation
under the provisions of Paragraphs 7A and 7C.

 

		9.	Effect of Death and Disability.

 

		A.	In the event of death of the Executive Vice President during the period of employment, the legal representative of the Executive
Vice President shall be entitled to the base salary provided for in Paragraph 4 for the month in which death shall have taken
place at the rate being paid at the time of death and the period of employment shall be deemed to have ended as of the close of
business on the last day of the month in which death shall have occurred but without prejudice to any payments due in respect to
the Executive Vice President’s death.

 

It is further understood that the foregoing shall not
foreclose the Corporation’s Board of Directors Compensation Committee from voting to continue the compensation of the Executive
Vice President to his widow for a reasonable period after his death.

 

		B.	If, as a result of the Executive Vice President’s incapacity due to physical or mental illness, the Executive Vice President
shall have been absent from his duties hereunder on a full-time basis for the entire period of nine (9) consecutive months, the
period of employment shall be deemed to have ended as of the close of business on the last day of such nine (9) month period but
without prejudice to any payments due to the Executive Vice President in respect to disability.

 

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In the event of disability of the Executive Vice President
during the period of employment, the Executive Vice President shall be entitled to the base salary provided of in Paragraph 4 above
at the rate being paid at the time of the commencement of disability for the first nine (9) month period of such disability. Thereafter,
the Executive Vice President shall receive fifty percent (50%) of such rate being paid at the time of the commencement of disability
for the remaining term provided for in this Agreement; provided, however, that this Agreement after the expiration of the nine
(9) month period shall be reduced by any payments to which the Executive Vice President may be entitled for the payment period
because of disability under any disability plan of the Corporation.

 

		10.	Successors or Assigns.

 

Any successor or assign (whether direct or indirect by purchase,
merger, consolidation or change of control) shall absolutely and unconditionally assume and agree to perform this Agreement in
the same manner and to the same extent that the Corporation would be required to perform it if no succession or assignment had
taken place. The Corporation agrees that it will require any successor, or assign, under the circumstances herein above set forth,
to expressly, absolutely and unconditionally assume and agree to perform this Agreement. Any failure of the Corporation to obtain
such agreement prior to the effectiveness of any such succession or assignment shall be a material breach of this Agreement and
shall entitle the Executive Vice President to terminate under the provisions of Paragraph 7A. As used in this Paragraph, the
Corporation shall mean the Federal Life Group, Inc., Federal Life Insurance Company and any successor of their business and/or
assets as aforesaid which executes and delivers the Agreement Page 7 provided for in this Paragraph or which otherwise becomes
bound by the terms and conditions of this Agreement by operation of law.

 

This Agreement shall inure to the benefit of and be enforceable
by the Executive Vice President’s legal representative, executors, administrators, successors, heirs, devisees, designees
and legatees. If the Executive Vice President should die while any amounts are still payable to him hereunder such amounts unless
otherwise provided for herein shall be paid in accordance with the terms of this Agreement to the Executive Vice President’s
devisees, legatees, or other designees, or, if there be no such designees, to the Executive Vice President’s estate.

 

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		11.	Non-disclosure.

 

The Executive Vice President agrees that he shall not at
any time while receiving compensation from the Corporation disclose or use, except in the course of his employment with the Corporation
in the pursuit of the business of the Corporation, any confidential information or proprietary data of the Corporation whether
such information or proprietary data is in his memory or embodied in writing or other physical form.

 

		12.	Conflicts.

 

Any paragraph, sentence, phrase or other provision of this
Executive Employment Agreement which is in conflict with any applicable statute, rule or other law shall be deemed, if possible,
to be modified or altered to conform thereto or, if not possible, to be omitted here from. The invalidity of any portion hereof
shall not affect the form and effect of the remaining valid portions hereof. Paragraph headings are included herein for convenience
and are not intended to affect in any way the interpretation of any remaining paragraphs of this Agreement.

 

		13.	Governing Law.

 

This Executive Employment Agreement is governed by and is
to be construed in accordance with the laws of the State of Illinois.

 

		14.	Notice.

 

All notices shall be in writing and shall be deemed effective
when delivered in person, or 48 hours after deposit thereof in the U.S. mails, postage pre-paid, for delivery as registered
mail, return-receipt requested, addressed in the case of the Executive Vice President to his last known address as carried on the
personnel records of the Corporation to the corporate headquarters to the attention of the President and Chief Executive Officer
thereof or to such other address as the parties to be notified may specify by notice to the other party.

 

		15.	Arbitration.

 

		A.	Any controversy or claim arising out of or relating to this Agreement or any breach thereof shall be settled by arbitration
before three (3) arbitrators, as provided below, and judgment of the award rendered which the arbitrators, or at least a majority
of the arbitrators, may be entered in any court having jurisdiction thereof.

 

		B.	Each party shall appoint a disinterested and neutral arbitrator and the two thus appointed shall appoint a third disinterested
and neutral arbitrator. If the two arbitrators so chosen cannot agree on the appointment of a third arbitrator then such arbitrator
shall be appointed by the then Chief Judge of the United States District Court of Illinois.

 

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		16.	Representation and Warranties.

 

The Corporation represents and warrants that the execution
of this Agreement by the Corporation has been duly authorized by resolution of their Board of Directors.

 

		17.	Modification.

 

No provision of this Agreement may be modified, waived or
discharged unless such modification, waiver or discharge is agreed to in writing signed by the Executive Vice President and the
Corporation. No waiver by either party hereto at any time by any breach of any part hereto of any compliance with any conditions
or provisions of this Agreement to be performed by such party shall be deemed a waiver of similar or dissimilar provisions or conditions
at the same or at any prior or subsequent time.

 

		18.	Compliance with Code Section 409A.

 

		A.	Notwithstanding any provision of this Agreement to the contrary, the Executive Vice President’s employment will be deemed
to have terminated on the date of the Executive “separation from service” (within the meaning of Treas. Reg. Section
1.409A-1(h)) with the Corporation.

 

		B.	It is intended that this Agreement will comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”),
and any regulations and guideline issued thereunder to the extent that any compensation and benefits provided hereunder constitute
deferred compensation subject to Code Section 409A. This Agreement shall be interpreted on a basis consistent with this intent.
The parties will negotiate in good faith to amend this Agreement as necessary to comply with Section 409A in a manner that preserves
the original intent of the parties to the extent reasonably possible. No action or failure to act, pursuant to this Section 18
shall subject the Corporation to any claim, liability, or expense, and the Corporation shall not have any obligation to indemnify
or otherwise protect the Executive Vice President from the obligation to pay any taxes pursuant to Section 409A of the Code.

 

		C.	For purposes of the application of Treas. Reg. § 1.409A-1(b)(4)(or any successor provision), each payment in a series
of payments will be deemed a separate payment.

 

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		D.	Notwithstanding anything in this Agreement to the contrary, if any amount or benefit that would constitute non-exempt “deferred
compensation” for purposes of Code Section 409A would otherwise be payable or distributable under this Agreement by reason
of the Executive Vice President’s separation from service during a period in which he is a “specified employee”
(as defined under Code Section 409A and the final regulations thereunder), then, subject to any permissible acceleration of payment
by the Corporation under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest),
or (j)(4)(vi) (payment of employment taxes):

 

		(i)	if the payment or distribution is payable in a lump sum, the Executive Vice President’s right to receive payment or distribution
of such non-exempt deferred compensation will be delayed until the earlier of the Executive Vice President’s death or the
first day of the seventh month following the Executive Vice President’s separation from service; and

		(ii)	if the payment or distribution is payable over time, the amount of such non-exempt deferred compensation that would otherwise
be payable during the six-month period immediately following the Executive Vice President’s separation from service will
be accumulated and the Executive Vice President’s right to receive payment or distribution of such accumulated amount will
be delayed until the earlier of the Executive Vice President’s death or the first day of the seventh month following the
Executive Vice President’s separation from service, whereupon the accumulated amount will be paid or distributed to the Executive
Vice President and the normal payment or distribution schedule for any remaining payments or distributions will resume.

 

This Section 18(D) should not be construed to prevent
the application of Treas. Reg. § 1.409A-1(b)(9)(iii)(or any successor provision) to amounts payable hereunder (or any portion
thereof).

 

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IN WITNESS WHEREOF, the Company and the Corporation,
by order of their Board of Directors, has caused this Agreement, consisting of eleven (11) pages, to be signed in its corporate
name by its duly authorized Director and impressed with its corporate seal, attested by its Secretary and the Director has hereunto
set his hand on the day and year first above written.

 

	ATTEST:	 	FEDERAL LIFE GROUP, INC.
	 	 	 	 
	 	 	By:	 
	Secretary	 	 	Director - Authorized
	 	 	 	 
	 	 	By:	 
	Witness	 	 	Michael Austin

 

    	 	11Exhibit

    

THIRTEENTH AMENDMENT TO AMENDED AND 
RESTATED REVOLVING CREDIT AGREEMENT

This Thirteenth Amendment to Amended and Restated Revolving Credit Agreement (herein, the “Amendment”) is entered into as of December 14, 2018, by and among World Acceptance Corporation, a South Carolina corporation (the “Borrower”), Wells Fargo Bank, National Association together with the other financial institutions a party hereto (the “Lenders”) and Wells Fargo Bank, National Association, as Administrative Agent and Collateral Agent for the Lenders (the “Administrative Agent”).
PRELIMINARY STATEMENTS
A.The Borrower, the Lenders, and the Administrative Agent are parties to a certain Amended and Restated Revolving Credit Agreement, dated as of September 17, 2010, as amended (the “Credit Agreement”).  All capitalized terms used herein without definition shall have the same meanings herein as such terms have in the Credit Agreement.
B.    The Borrower has requested that the Lenders agree to make certain amendments to the Credit Agreement, and the Lenders are willing to do so under the terms and conditions set forth in this Amendment.
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
SECTION 1.    AMENDMENTS.
Subject to the satisfaction of the conditions precedent set forth in Section 2 below, the Credit Agreement shall be and hereby is amended as follows:
1.1.    The introductory portion of Section 2.14 of the Credit Agreement (Accordion Facility) shall be amended and restated as follows:
Section 2.14    Accordion Facility.  Subject to the terms and conditions set forth herein below, the Borrower shall have a right at any time to increase the aggregate amount of the Commitment (the “Accordion Increase”) in an amount acceptable to the Administrative Agent in its commercially reasonable discretion; provided, however, that the aggregate amount of the Accordion Increase shall not result in the aggregate amount of the Commitment to exceed $600,000,000.  The following additional terms and conditions shall apply to the Accordion Increase:
1.2.    The following definitions in Section 5.1 of the Credit Agreement (Definitions) shall be amended and restated as follows:
“Applicable Margin” means (a) initially 4.00% per annum and (b) commencing with the Administrative Agent’s receipt of the monthly financial statements and other documentation and reports required pursuant to Section 8.20 of this Agreement for the calendar month ending December 31, 2018 the following percentage as set forth in the matrix below (no downward rate adjustment being permitted if an Event of Default or Default is outstanding):

	
		
	EBITDA Ratio
	Applicable Margin

	Greater than 6.0 to 1.0
	3.00%

	Greater than 5.50 to 1.0 but less than or equal to 6.0 to 1.0
	3.50%

	Less than or equal to 5.50 to 1.0
	4.00%

For purposes of the foregoing (i) the Applicable Margin shall be adjusted monthly in accordance with the matrix above, based upon the Administrative Agent’s receipt of monthly financial statements and other documentation and reports required pursuant to Section 8.20 of this Agreement, and effective the first (1st) day of the month of the delivery of such financial statements and other documentation and reports and (ii) if Borrowers fail to timely deliver the applicable financial statements, documentation and reports or any other Event of Default then exists, then at the Administrative Agent’s option, the Applicable Margin will be increased to the highest rate of interest pursuant to the above matrix, which rate of interest shall continue in effect until the applicable financial statements are delivered.  In the event that any financial statement, covenant compliance certificate, documentation and reports delivered pursuant to Section 8.20 of this Agreement is shown to be inaccurate (regardless of whether this Agreement is in effect when such inaccuracy is discovered), and such inaccuracy, if corrected, would have led to the application of a higher Applicable Margin for any period (an “Applicable Period”) than the Applicable Margin applied for such Applicable Period, and only in such case, then Borrowers shall immediately (i) deliver to the Administrative Agent a corrected covenant compliance certificate for such Applicable Period, (ii) determine the Applicable Margin for such Applicable Period based upon the corrected covenant compliance certificate, and (iii) pay to the Administrative Agent the accrued additional interest owing as a result of such increased Applicable Margin for such Applicable Period.
“GAAP” means generally accepted accounting principles as in effect from time to time in the United States, consistently applied; provided, however, that all calculations relative to liabilities shall be made without giving effect to Statement of Financial Accounting Standards No. 159.
1.3.    The following new definitions are added to Section 5.1 of the Credit Agreement (Definitions):
“Consolidated EBITDA Ratio Net Income” for any period Consolidated Net Income before payments of interest, taxes, depreciation, amortization and non-cash share based compensation expenses, but excluding in any event:
(a)        any gains or losses on the sale or other disposition of investments or fixed or capital assets, and any taxes on such excluded gains and any tax deductions or credits on account of any such excluded losses;
(b)    the proceeds of any life insurance policy;
(c)    net earnings and losses of any Restricted Subsidiary accrued prior to the date it became a Restricted Subsidiary;

(d)    net earnings and losses of any Person (other than a Restricted Subsidiary), substantially all the assets of which have been acquired in any manner, realized by such other Person prior to the date of such acquisition;
(e)    net earnings and losses of any Person (other than a Restricted Subsidiary) with which the Borrower or a Restricted Subsidiary shall have consolidated or which shall have merged into or with the Borrower or a Restricted Subsidiary prior to the date of such consolidation or merger;
(f)    net earnings of any Unrestricted Subsidiary or other business entity (other than a Restricted Subsidiary) in which the Borrower or any Restricted Subsidiary has an ownership interest unless such net earnings shall have actually been received by the Borrower or such Restricted Subsidiary in the form of cash distributions;
(g)    any portion of the net earnings of any Restricted Subsidiary (other than the Insurance Subsidiary) which for any reason is unavailable for payment of dividends to the Borrower or any other Restricted Subsidiary;
(h)    earnings resulting from any reappraisal, revaluation or write‐up of assets;
(i)    any deferred or other credit representing any excess of the equity in any Subsidiary at the date of acquisition thereof over the amount invested in such Subsidiary;
(j)    any gain arising from the acquisition of any Securities of the Borrower or any Restricted Subsidiary; 
(k)    any reversal of any contingency reserve, except to the extent that provision for such contingency reserve shall have been made from income arising during such period;
(l)    any portion of the net earnings of the Insurance Subsidiary in excess of $500,000 (on a cumulative basis) which has not actually been distributed to the Borrower in the form of cash; 
(m)        the excess, if any, of (A) net charge‐offs of the Borrower and its Restricted Subsidiaries over the twelve‐month period ending with such date over (B) provision for loan losses of the Borrower and its Restricted Subsidiaries over the twelve-month period ending with such date; and
(o)        Receivables 180 days or more contractually past due (unless reserved for by the Borrower).

“EBITDA Ratio” means the ratio of (a) Consolidated EBITDA Ratio Net Income during such period, to (b) all Interest Charges on all Indebtedness of the Borrower and its Restricted Subsidiaries during such period, as calculated on a rolling twelve (12) month basis and in accordance with GAAP.

1.4.    Section 5.3 of the Credit Agreement (Change in Accounting Principles) shall be amended and restated as follows:
Section 5.3    Change in Accounting Principles.  If, after the date of this Agreement, there shall occur any change in GAAP from those used in the preparation of the financial statements referred to in Section 6.6 hereof and such change shall result in a change in the method of calculation of any financial covenant, pricing grid, standard or term found in this Agreement, either the Borrower or the Required Lenders may by notice to the Lenders and the Borrower, respectively, require that the Lenders and the Borrower negotiate in good faith to amend such covenants, pricing grid, standards, and terms so as equitably to reflect such change in accounting principles, with the desired result being that the criteria for evaluating the financial condition of the Borrower and its Subsidiaries shall be the same as if such change had not been made.  No delay by the Borrower or the Required Lenders in requiring such negotiation shall limit their right to so require such a negotiation at any time after such a change in accounting principles.  Until any such covenant, pricing grid, standard, or term is amended in accordance with this Section 5.3, financial covenants shall be computed and determined in accordance with GAAP in effect prior to such change in accounting principles.  Without limiting the generality of the foregoing, the Borrower shall neither be deemed to be in compliance with any financial covenant hereunder nor out of compliance with any financial covenant hereunder if such state of compliance or noncompliance, as the case may be, would not exist but for the occurrence of a change in accounting principles after the date hereof.  The Borrower covenants and agrees with the Lenders that whether or not the Borrower may at any time adopt Accounting Standards Codification 825 or account for assets and liabilities acquired in an acquisition on a fair value basis pursuant to Accounting Standards Codification 805, all determinations of compliance with the terms and conditions of this Agreement shall be made on the basis that the Borrower has not adopted Accounting Standards Codification 825 or Accounting Standards Codification 805.
1.5.    The following new Section 8.20(o) is added to the Credit Agreement (Monthly Statements):
(o)    Monthly Statements.  As soon as available and in any event within 25 days after the end of each calendar month of each fiscal year, a copy of:
(1)    consolidated balance sheets of the Borrower and its Restricted Subsidiaries as of the close of such calendar month and, in the case of the consolidated balance sheets, setting forth in comparative form the amount for the corresponding period of the preceding fiscal year, and
(2)    consolidated statements of income and retained earnings of the Borrower and its Restricted Subsidiaries for the portion of the fiscal year ending with such calendar month and, in the case of the consolidated statements of income and retained earnings, setting forth in comparative form the amount for the corresponding period of the preceding fiscal year,

all in reasonable detail and certified as complete and correct, by an authorized financial officer of the Borrower.

SECTION 2.    CONDITIONS PRECEDENT.

The effectiveness of this Amendment is subject to the satisfaction of all of the following conditions precedent (the date on which the following conditions precedent have been satisfied being referred to herein as the “Effective Date”):
2.1.    The Borrower and the Lenders, shall have executed and delivered this Amendment to the Administrative Agent.
2.2.    The Restricted Subsidiaries parties to the Subsidiary Guaranty Agreement shall have executed and delivered to the Administrative Agent their consent to this Amendment in the form set forth below.
2.3.    Legal matters incident to the execution and delivery of this Amendment shall be satisfactory to the Administrative Agent and its counsel.
SECTION 3.    REPRESENTATIONS.
In order to induce the Lenders to execute and deliver this Amendment, the Borrower hereby represents to the Administrative Agent, the Collateral Agent, and the Lenders that as of the date hereof, (a) the representations and warranties set forth in Section 6 of the Credit Agreement and in the other Loan Documents are and shall be and remain true and correct (except that the representations contained in Section 6.6 shall be deemed to refer to the most recent financial statements of the Borrower delivered to the Agent) and (b) the Borrower and the Restricted Subsidiaries are in compliance with the terms and conditions of the Credit Agreement and the other Loan Documents and no Default or Event of Default exists or shall result after giving effect to this Amendment. 
SECTION 4.    MISCELLANEOUS.
4.1.    Except as specifically amended herein, the Credit Agreement shall continue in full force and effect in accordance with its original terms.  Reference to this specific Amendment need not be made in the Credit Agreement, the Notes, or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to or with respect to the Credit Agreement, any reference in any of such items to the Credit Agreement being sufficient to refer to the Credit Agreement as amended hereby.  
4.2.    The Borrower heretofore executed and delivered, among other things, the Company Security Agreement and hereby acknowledges and agrees that the security interests and liens created and provided for therein secure the payment and performance of the Obligations under the Credit Agreement as amended hereby, which are entitled to all of the benefits and privileges set forth therein.  Without limiting the foregoing, the Borrower acknowledges that the “Secured Indebtedness” as defined in, and secured by the Collateral pursuant to, the Company Security Agreement shall be deemed amended to include all “Obligations” as defined in the Credit Agreement as amended hereby.
4.3.    The Borrower agrees to pay on demand all costs and expenses of or incurred by the Administrative Agent in connection with the negotiation, preparation, execution and delivery of this Amendment and the other instruments and documents to be executed and delivered in connection herewith, including the fees and expenses of counsel for the Administrative Agent.
4.4.    This Amendment may be executed in any number of counterparts, and by the different parties on different counterpart signature pages, all of which taken together shall constitute one and the same agreement.  Any of the parties hereto may execute this Amendment by signing any such counterpart and each of such counterparts shall for all purposes be deemed to be an original.  Delivery of a counterpart hereof by facsimile transmission or by e-mail transmission of a Portable Document Format File (also known as an “PDF” file) shall be effective as delivery of a manually executed counterpart hereof.  This Amendment shall be governed by, and construed in accordance with, the internal laws of the State of Illinois (without regard to principles of conflicts of laws).
[SIGNATURE PAGES TO FOLLOW]

This Amendment is entered into as of the date and year first above written.
	
			
	 
	WORLD ACCEPTANCE CORPORATION

	 
	 

	 
	By
	________________________________

	 
	

Accepted and agreed to:
	
			
	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION, individually as a Lender and as Administrative Agent and Collateral Agent

	 
	 

	 
	By
	________________________________

	 
	   William M. Laird, Senior Vice    President

	 
	 

	 
	 

	
				
	 
	BANK OF AMERICA, N.A.

	 
	 

	 
	 

	 
	By
	 

	 
	Name

	 
	Title

	 
	 

	 
	BANK OF MONTREAL

By   _______________________________
     Name  
     Title    

	 
	 

	 
	TEXAS CAPITAL BANK, NATIONAL ASSOCIATION

	 
	 

	 
	 

	 
	By
	 

	 
	Name   

	 
	Title      

	 
	 

	 
	FIRST TENNESSEE BANK NATIONAL ASSOCIATION

	 
	 

	 
	 

	 
	By
	         

	 
	Name
Title

	 
	

BANK UNITED, N.A.

	 
	 

	 
	 

	 
	By   __________________________________

	 
	Name

	 
	Title

	 
	 

 

ACKNOWLEDGMENT AND CONSENT
Each of the undersigned is a Restricted Subsidiary of World Acceptance Corporation who has executed and delivered to the Collateral Agent, the Administrative Agent, and the Lenders the Subsidiary Guaranty Agreement and the Subsidiary Security Agreement.  Each of the undersigned hereby acknowledges and consents to the Thirteenth Amendment to Amended and Restated Revolving Credit Agreement set forth above (the “Amendment”) and confirms that the Loan Documents executed by it, and all of its obligations thereunder, remain in full force and effect, and that the security interests and liens created and provided for therein continue to secure the payment and performance of the Obligations of the Borrower under the Credit Agreement after giving effect to the Amendment.  
Dated as December 14, 2018.
[SIGNATURE PAGE TO ACKNOWLEDGMENT AND CONSENT TO FOLLOW]

Each of the undersigned acknowledges that the Collateral Agent, the Administrative Agent, and the Lenders are relying on the foregoing in entering into the Amendment.
	
		
	 
	World Acceptance Corporation of Alabama

	 
	World Acceptance Corporation of Missouri

	 
	World Finance Corporation of Georgia

	 
	World Finance Corporation of Louisiana

	 
	World Acceptance Corporation of Oklahoma, Inc.

	 
	World Finance Company of South Carolina, LLC

	 
	World Finance Corporation of Tennessee

	 
	WFC of South Carolina, Inc.

	 
	World Finance Corporation of Illinois

	 
	World Finance Corporation of New Mexico

	 
	World Finance Company of Kentucky LLC

	 
	World Finance Corporation of Colorado

	 
	World Finance Corporation of Wisconsin

	 
	WFC Services, Inc.

	 
	World Finance Corporation of Texas

	 
	World Finance Corporation of Indiana, LLC

	 
	World Finance Corporation of Mississippi, LLC

	 
	World Finance Corporation of Idaho, LLC

	
			
	 
	By
	 

	 
	Name

	 
	Title

	 
	WFC Limited Partnership

	 
	 

	 
	By WFC of South Carolina, Inc.,

	 
	as sole general partner

	 
	By
	 

	 
	Name
Title

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