Document:

exv10w1

 

Exhibit 10.1

PRIVATE AND CONFIDENTIAL

DATED SEPTEMBER 11, 2007

	(1)	 	DOLLAR FINANCIAL UK LIMITED
	 
	(2)	 	PAUL MILDENSTEIN

AMENDED AND RESTATED

SERVICE AGREEMENT

 

 

CONTENTS

	 	 	 	 	 	 	 	 	 
	 	1.	 	 	DEFINITIONS AND INTERPRETATION
	 	 	3	 
	 	2.	 	 	APPOINTMENT, TERM AND NOTICE
	 	 	5	 
	 	3.	 	 	DUTIES
	 	 	6	 
	 	4.	 	 	PLACE OF WORK
	 	 	6	 
	 	5.	 	 	HOURS OF WORK
	 	 	6	 
	 	6.	 	 	SALARY
	 	 	7	 
	 	7.	 	 	BONUS AND EQUITY
	 	 	7	 
	 	8.	 	 	PENSION AND OTHER BENEFITS
	 	 	7	 
	 	9.	 	 	EXPENSES
	 	 	8	 
	 	10.	 	 	MOTOR CAR
	 	 	8	 
	 	11.	 	 	HOLIDAYS
	 	 	8	 
	 	12.	 	 	ABSENCE FROM WORK
	 	 	9	 
	 	13.	 	 	OBLIGATIONS DURING EMPLOYMENT
	 	 	9	 
	 	14.	 	 	TERMINATION OF EMPLOYMENT
	 	 	11	 
	 	15.	 	 	SALE OR RECONSTRUCTION OF THE COMPANY
	 	 	15	 
	 	16.	 	 	RESTRICTIVE
COVENANTS
	 	 	16	 
	 	17.	 	 	REDUCTION OF LENGTH OF POST TERMINATION RESTRICTIONS
	 	 	18	 
	 	18.	 	 	COMPANY PROPERTY
	 	 	19	 
	 	19.	 	 	INTELLECTUAL PROPERTY
	 	 	19	 
	 	20.	 	 	DISCIPLINARY AND GRIEVANCE PROCEDURES AND SUSPENSION
	 	 	19	 
	 	21.	 	 	DEDUCTIONS
	 	 	19	 
	 	22.	 	 	DATA PROTECTION
	 	 	20	 
	 	23.	 	 	NOTICES
	 	 	20	 
	 	24.	 	 	CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999
	 	 	20	 
	 	25.	 	 	WARRANTY
	 	 	20	 
	 	26.	 	 	COLLECTIVE AGREEMENTS
	 	 	20	 
	 	27.	 	 	LAW AND JURISDICTION
	 	 	21	 
	 	28.	 	 	ENTIRE AGREEMENT; AMENDMENTS
	 	 	21	 

 

 

THIS AMENDED AND RESTATED SERVICE AGREEMENT is made on September 6, 2007

BETWEEN

	(1)	 	the Company     Dollar Financial UK Ltd

     Castlebridge Office Village, Kirtley Drive, Castle Marina, Nottingham, NG7 2LD.

	(2)	 	the Executive     Paul Mildenstein

     2 Redhouse Farm Barn, Beausale, Warwickshire CV35 7NZ.

and includes the Particulars of Terms of Employment required by the Employment Rights Act 1996
(as amended).

     WHEREAS, the Company and the Executive are parties to a Service Agreement dated as of April 4,
2005 (the “Original Agreement”); and

     WHEREAS, the Company desires to continue to employ the Executive and the Executive desires to
continue to be employed by the Company, upon the terms and conditions set forth in this Amended and
Restated Service Agreement.

     NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, and
intending to be legally bound, the parties, subject to the terms and conditions set forth herein,
agree as follows:

OPERATIVE PROVISIONS:

	1.	 	DEFINITIONS AND INTERPRETATION

	 	1.1.	 	In this Agreement the following words and expressions have the following meanings:

	 	 	 
	Confidential Information

	 	shall include, but not be limited to, the
following (whether recorded in writing, on
computer disk or in any other manner) trade
secrets; customer data, including but not limited
to, any such information disclosing the names and
addresses of customers and suppliers of the
Company and/or any Group Company, the person at
such contact or supplier to contact, the
requirements of such customer or supplier,
discounts offered by the Company and/or any Group
Company; investment and pricing policies;
product performance data; marketing

 

 

	 	 	 
	 

	 	information; technical designs or specifications of the
Company’s products; business plans or dealings
relating to the current or future activities of
the Company and/or any Group Company, including
the timing of all or any such matters; know-how;
computer passwords; product lines; research
activities and results; internal management
accounts, any document marked “confidential” or
any information which the Executive has been told
is confidential or which the Executive might
reasonably expect the Company and/or any Group
Company would regard as confidential or which by
its very nature is confidential to the Company, or
any information which has been given to the
Company and/or any Group Company in confidence by
customers, suppliers or other persons, and whether
or not recorded in documentary form, computer disk
or tape, which the Executive shall acquire at any
time during the Executive’s employment but which
does not form part of the Executive’s own stock in
trade provided that it shall not include any
information or knowledge which is already in the
public domain or may subsequently come into the
public domain after the Termination Date other
than by way of unauthorised disclosure by the
Executive;
	 
	 	 
	Group

	 	the Company and any Group Company;
	 
	 	 
	Group Company

	 	means:

	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	a holding company of the Company as defined by
s736 of the Companies Act 1985;
	 
	 	 	 	 	 	 
	 

	 	 	2.	 	 	a subsidiary as defined by s736 of the
Companies Act 1985 of the Company, or of its
holding company;
	 
	 	 	 	 	 	 
	 

	 	 	3.	 	 	a company over which the Company has control
within the meaning of s840 of the Income and
Corporation Taxes Act 1988; or
	 
	 	 	 	 	 	 
	 

	 	 	4.	 	 	a subsidiary undertaking of the Company as
defined by s258 of the Companies Act 1985.

	 	 	 
	Material Interest

	 	the holding of any position as director, officer,

 

 

	 	 	 
	 

	 	employee, consultant, partner, principal or agent;
	 
	 	 
	Termination Date

	 	the date on which the Executive’s employment under
this Agreement terminates and references to “from
the Termination Date” mean from and including the
date of termination.

	 	1.2.	 	Unless the context otherwise requires words denoting the singular shall include the
plural and vice versa and reference to any gender shall include all other genders.
	 
	 	1.3.	 	References to the word “include” or “including” are to be construed without
limitation.
	 
	 	1.4.	 	References in this Agreement to statutory provisions include all modifications and
re-enactments of them and all subordinate legislation under them.
	 
	 	1.5.	 	Headings in this Agreement are inserted for convenience only and shall not affect
its construction.

	2.	 	APPOINTMENT, TERM AND NOTICE

	 	2.1.	 	The Company will continue to employ the Executive and the Executive will serve the
Company as its Managing Director.

	 	2.2.	 	The Executive’s appointment commenced on July 1, 2005 and shall continue (subject
to earlier termination as provided in this Agreement) by either party giving to the other
six calendar months’ written notice.
	 
	 	2.3.	 	The Executive agrees that at its absolute discretion the Company may terminate the
Executive’s employment under this Agreement with immediate effect by paying the Executive
in lieu of his notice period or in lieu of the remainder of his notice period if at the
Company’s request the Executive has worked during part of the notice period. For this
purpose, the Executive agrees that the payment in lieu of notice will be his basic
monthly salary and the value of contractual benefits and allowances for his notice
period, after deducting Income Tax and National Insurance contributions, and specifically
excluding from such calculation any, fee, bonus or commission referable to his employment
whether payable under this Agreement or otherwise in respect of that period.
	 
	 	2.4.	 	The Executive’s continuous employment with the Company for the purposes of the
Employment Rights Act 1996 (as amended) commenced on or before July 1, 2005. No
employment with a previous employer counts as part of the Executive’s period of
continuous employment.
	 
	 	2.5.	 	This Agreement shall automatically terminate on the Executive reaching age 65 (“the
Retirement Date”) unless the Company and the Executive agree at any time prior to the
Retirement Date that the Agreement should continue after the Retirement Date.

 

 

	3.	 	DUTIES

	 	3.1.	 	The Executive will carry out the duties and functions, exercise the powers and
comply with the instructions assigned or given to the Executive from time to time by the
Chief Operating Officer. Except when prevented by illness, accident or holiday the
Executive will devote his time, attention and skill to the affairs of the Company and/or
any Group Company and where appropriate do his best to promote its interests provided
that the Company may at any time for any reason require the Executive to cease performing
and exercising all or any of the Executive’s duties, functions or powers.
	 
	 	3.2.	 	The Executive will at all times keep promptly and fully informed the Chief
Operating Officer (in writing if so requested) of the conduct of the business or affairs
of the Company and/or any Group Company and provide such explanations and assistance as
the Chief Operating Officer may require in connection with such business or affairs and
the Executive’s employment under this Agreement.
	 
	 	3.3.	 	The Executive will not without the prior consent of the Chief Operating Officer
accept or take up any other employment nor will he accept any form of
paid or unpaid consultative or other work whilst employed by the Company (or any Group
Company). Existing commitments need to be disclosed prior to the signing of this
agreement to be included and consent for future commitments will be at the discretion
of the Chief Operating Officer.

	4.	 	PLACE OF WORK

	 	4.1.	 	The Executive will perform the Executive’s duties at Castlebridge Office Village,
Kirtley Drive, Castle Marina, Nottingham, NG7 2LD or such other place of business of the
Company inside or outside of the United Kingdom as the Company may require.
	 
	 	4.2.	 	In the performance of the Executive’s duties, the Executive may be required to
travel both throughout and outside the United Kingdom.

	5.	 	HOURS OF WORK

	 	5.1.	 	The Company’s normal office hours are from 9.00am to 5.30pm Monday to Friday but
the Executive will work such hours as are needed for the proper performance of his duties
including hours outside the Company’s normal office hours without additional remuneration
in order to meet the requirements of the business.

 

 

	6.	 	SALARY

	 	6.1.	 	The Executive’s basic annual salary is £165,000 effective July 1, 2007, which will
accrue from day to day and be payable monthly in arrears by BACS on the last business day
of each month or the nearest working day before that.
	 
	 	6.2.	 	The Executive’s salary will be subject to review annually by the Company in its
absolute discretion.

	7.	 	BONUS AND EQUITY

	 	7.1.	 	The Executive may while employed by the Company be entitled to an equity incentive
and to be paid a bonus of such amount and on such terms as may be agreed between the
Company and the Executive and to be set out in a separate agreement between the Company
and the Executive.
	 
	 	7.2.	 	The Company reserves the right in its absolute discretion to vary the terms of
and/or the measurement criteria of bonus payable under this Agreement.

	8.	 	PENSION AND OTHER BENEFITS

	 	8.1.	 	The Executive will be entitled to participate in the Company’s pension scheme
subject to and upon the rules of the pension scheme from time to time in effect. A copy
of the rules of the pension scheme can be obtained from the Company on request.
	 
	 	8.2.	 	The Company will contribute in equal monthly installments an amount equal to 5% of
the Executive’s basic salary (or, if less, the maximum amount permitted by the Inland
Revenue) during each year of his employment under this Agreement to the pension scheme
referred to in Section 8.1 PROVIDED THAT, as a condition of making such contribution, the
Company may require the Executive to contribute 5% of his basic salary to such pension
scheme.
	 
	 	8.3.	 	There is no contracting out certificate in force in respect of the Executive’s
employment under the provisions of the Pension Schemes Act 1993.
	 
	 	8.4.	 	During the Executive’s employment the Company will provide the Executive at the
Company’s expense with Death in Service Benefit at the rate of 4 times basic salary under
the Company’s scheme subject to and upon the rules of the scheme from time to time in
force and to the Executive being eligible to participate in or benefit from the scheme.
	 
	 	8.5.	 	During the Executive’s employment the Company will provide the Executive and his
immediate family at the Company’s expense with cover under the Company’s Private
Healthcare Scheme subject to and upon the rules of the said scheme from

 

 

	 	 	 	time to time in
force and to the Executive (and where appropriate the Executive’s family) being eligible
to participate in or benefit from the scheme.

	 
	 	8.6.	 	In respect of the benefits provided to the Executive under this Section 8 the
Company reserves the right to terminate or substitute other schemes for them or amend the
scale or level of benefits.

	9.	 	EXPENSES

The Company will reimburse to the Executive all business expenses reasonably and properly
incurred in the performance of the Executive’s duties under this Agreement on hotel,
traveling, entertainment and other similar items provided that the Executive produces to the
Company all appropriate receipts or other satisfactory evidence of expenditure.

	10.	 	MOTOR CAR

10.1. The Company shall provide the Executive with a car allowance in the sum of £15,000 per
annum, to be paid on a monthly schedule.

	11.	 	HOLIDAYS

	 	11.1.	 	In this clause “holiday year” means the period from January 1st to
December 31st in each year.
	 
	 	11.2.	 	In addition to statutory bank and public holidays the Executive will be entitled
to 25 working days’ paid holiday in each holiday year.
	 
	 	11.3.	 	All holidays are to be taken at such times as may be approved by the Chief
Operating Officer with two weeks notice.
	 
	 	11.4.	 	The Executive may not carry holiday forward to the following holiday year without
express permission of the Chief Operating Officer.
	 
	 	11.5.	 	The Executive will not be entitled to any pay in lieu of holiday except when
employment terminates and the Executive has not taken his accrued entitlement as at the
Termination Date. On termination, the Executive’s holiday entitlement will be calculated
pro-rata.
	 
	 	11.6.	 	Where the Executive has taken more or less than his holiday entitlement in the
holiday year in which the employment terminates, a proportionate adjustment will be made
by way of addition to or deduction from as appropriate the Executive’s final gross salary
calculated on a pro-rata basis. A day’s pay for the purposes of this Section 11 will be
1/260 of the Executive’s annual basic salary.

 

 

	12.	 	ABSENCE FROM WORK

	 	12.1.	 	If the Executive is absent from work due to illness injury or other incapacity the
Executive must notify the Company as soon as possible on the first day of absence that
the Executive will be unable to attend. The Executive must then keep the Company
informed on a regular basis of his progress and when he expects to return to work.
	 
	 	12.2.	 	If the Executive is absent from work for between three to seven days (including
weekends), the Executive is required to complete a self-certification form stating the
dates and reason for absence including details of illness, injury or incapacity on non
working days as this information is required by the Company to calculate Statutory Sick
Pay (“SSP”) entitlement.
	 
	 	12.3.	 	If the Executive is absent from work due to illness or injury which continues for
seven or more consecutive days (including weekends) the Executive must provide the
Company with a medical certificate and give or send it immediately to the Company. If
absence is prolonged the Executive should continue to submit regular medical
certificates, on a weekly basis, to cover the entire period of his absence and to keep
the Company informed generally as to the Executive’s condition and the likely date of
return to work.
	 
	 	12.4.	 	“Qualifying days” for SSP purposes are Monday to Friday inclusive. The first
three qualifying days are waiting days for which no SSP is payable.
	 
	 	12.5.	 	Failure to comply with the above procedures may disqualify the Executive from
receiving SSP.
	 
	 	12.6.	 	The Company will be entitled, at its expense, to require the Executive to be
examined by an independent medical practitioner of the Company’s choice at any time and
the Executive agrees that the Doctor carrying out the examination may disclose to and
discuss with the Company the results of the examination.

	13.	 	OBLIGATIONS DURING EMPLOYMENT

	 	13.1.	 	During employment by the Company the Executive shall:

	 	13.1.1.	 	abide by any relevant Company policy, rule or procedure which may be in force
from time to time;
	 
	 	13.1.2.	 	not without the Company’s prior written consent hold any Material Interest in
any person, firm, company, business or organisation which:

	 	13.1.2.1.	 	is in direct competition with the Company or the Group in
cheque cashing or pay day cash advances;
	 
	 	13.1.2.2.	 	impairs or might reasonably be thought by the Company or the
Group to impair the Executive’s ability to act at all times in the
best interests of the Company; or

 

 

	 	13.1.2.3.	 	requires the Executive to disclose Confidential Information in
order properly to discharge his duties to or further his interest
in such person, firm, company, organisation or business;

	 	13.1.3.	 	not divulge Confidential Information or obtain or seek to obtain any direct
or indirect financial advantage from the disclosure of such information provided
that this obligation not to divulge Confidential Information does not apply to
disclosures made with the prior consent of the Company and/or the Group or
required by a Court Order;
	 
	 	13.1.4.	 	not directly or indirectly receive or obtain in respect of any goods or
services sold or purchased or other business transacted (whether or not by the
Executive) by or on behalf of the Company and/or the Group any discount, rebate,
commission or other inducement (whether in cash or in kind) which is not
authorised by the Company’s or Group’s rules or guidelines from time to time and
if the Executive or any person, firm, company, organisation or business in
which the Executive holds any Material Interest shall obtain any such discount,
rebate, commission or inducement the Executive shall immediately account to the Company and/or the Group for the amount the Executive or they receive;
	 
	 	13.1.5.	 	not introduce to any person, firm or company any business of any kind with
which the Company or any Group Company for which the Executive has performed
services under this Agreement is able to deal and not have any financial
interest in, or derive any financial benefit from, contracts or transactions
entered into by the Company or any other Group Company for which the Executive
performed services under this Agreement with any third party, without first
disclosing such interest or benefit to the Chief Operating Officer and obtaining
his approval;
	 
	 	13.1.6.	 	not make any notes or memoranda relating to any matter within the scope of
the business dealings or affairs of the Company or any Group Company otherwise
than for the benefit of the Company or the Group or without the prior consent of
the Chief Operating Officer, remove from the Company premises or copy or allow
others to copy the contents of any document, disk, tape or other tangible items
which contains any Confidential Information or which belongs to the Company or
the Group;
	 
	 	13.1.7.	 	if so requested by the Company delete all Confidential Information from any
computer disks, tapes or other reusable material in the Executive’s possession
or under 

 

 

	 	 	 	the Executive’s control and destroy all other documents and tangible
items in the Executive’s possession or under the Executive’s control which
contain or refer to any Confidential Information;

	 	13.2.	 	The provisions of this Section 13 are subject to the Public Interest Disclosure
Act 1998 and the Executive’s rights under that Act are unaffected.

	14.	 	TERMINATION OF EMPLOYMENT

	 	14.1.	 	Termination By Executive. The Executive may terminate the employment relationship
at any time for any reason by giving the Company written notice at least six calendar
months prior to the effective date of termination. The Company, at its election, may (i)
require the Executive to continue to perform his duties hereunder for the full six
calendar months notice period, or (ii) terminate the Executive’s employment at any time
during such six calendar months notice period, provided that any such termination shall
not be deemed to be a termination of the Executive’s employment by the Company without
Cause. Upon a termination by the Executive, all compensation and benefits paid by the
Company to the Executive shall cease upon his last day of employment.
	 
	 	14.2.	 	Termination By Company For Cause. If the Executive’s employment is terminated for
“Cause,” the Executive will not be entitled to and shall not receive any compensation or
benefits of any type following the effective date of termination. As used in this
Agreement, the term “Cause” shall include but not be limited to a termination for (i) a
material breach of any promise or obligation imposed under this Agreement, including,
without limitation, a refusal to substantially perform the Executive’s duties hereunder,
except in the event that the Executive becomes permanently disabled as set forth in
Section 14.4; (ii) acts of embezzlement or misappropriation of funds, regardless of
whether the embezzlement or misappropriation involves funds or assets of the Company or a
third party; (iii) dereliction of fiduciary obligation; (iv) conviction of a felony, plea
of guilty or no contest to a felony charge or any criminal act involving moral turpitude;
(v) an unauthorized disclosure of confidential information belonging to the Company, or
entrusted to the Company by a client, customer, or other third party; (vi) a violation of
any material Company rule, regulation or policy; (vii) any act adverse to the interests
of the Company or reasonably likely to result in material harm to the Company or to bring
the Company into disrepute; (vii) engaging in behaviour that would constitute grounds for
liability for harassment (as proscribed by any applicable regulatory body) or other
conduct that violates laws governing the workplace; provided, however, that “Cause” shall
not be found to exist absent a majority vote of the Board at the relevant time, excluding
the Executive.

 

 

	 	14.3.	 	Termination By Company Without Cause. Upon six calendar months’ written notice,
the Company shall retain the right to terminate the Executive without Cause. If the
Executive’s employment is terminated by the Company without Cause, the Executive shall be
provided with the following severance package, contingent upon the terms set forth below:

	 	14.3.1.	 	The Executive shall continue to receive an amount equivalent to his then
current basic annual salary for a period of six (6) months following the
effective date of his termination (the “Severance Period”); said amounts to be
paid to the Executive in accordance with the Company’s payroll practices;
	 
	 	14.3.2.	 	The Executive shall receive a payment of fifty percent (50%) of his target
annual bonus, if any as determined in accordance with Section 7 and which shall
be calculated by averaging the amount of the annual bonuses received by the
Executive for the prior two years and multiplying this average by .50, and shall
be paid out in equal installments over the Severance Period;

	 	14.3.3.	 	During the Severance Period, the Company shall continue to contribute to the
cost of the Executive’s health insurance coverage under the Company’s Private
Healthcare Scheme;
	 
	 	14.3.4.	 	During the Severance Period, the Company shall continue paying the premiums
or will reimburse the Executive for premiums paid for life and disability
insurance that were in effect at the time of termination and shall continue to
pay the Executive his car allowance payment;

provided, however, the Executive shall not be entitled to any severance compensation
and benefits under this Section 14.3 unless (i) the Executive complies with all
surviving provisions of Sections 16, 18 and 19 or any other non-competition
agreement, non-solicitation agreement, confidentiality agreement or invention
assignment agreement signed by the Executive, and (ii) the Executive executes and
delivers to the Company after a notice of termination a release in form and substance
acceptable to the Company by which the Executive releases the Company and all of its
affiliates from any obligations and liabilities of any type whatsoever, including
those arising out of his employment, the termination of employment, or under this
Agreement, except for the Company’s obligations with respect to the severance
compensation and benefits under this Section 14.3. The parties hereto acknowledge
that the severance compensation and benefits to be provided under this Section 14.3
is to be provided in consideration for the above-specified
release.

 

 

	 	14.4.	 	Termination for Executive’s Permanent Disability. To the extent permissible under
applicable law, in the event the Executive becomes permanently disabled during employment
with the Company, the Company may terminate this Agreement by giving thirty (30) days
notice to the Executive of its intent to terminate, and unless the Executive resumes
performance of the duties set forth in this Agreement within five (5) days of the date of
the notice and continues performance for the remainder of the notice period, this
Agreement shall terminate at the end of the thirty (30) day period. A termination due to
the Executive’s permanent disability shall be treated for all severance purposes as a
Termination “Without Cause,” and the Executive shall be entitled to receive all of the
payments identified in Section 14.3 of this Agreement, provided that he complies with the
terms and conditions set forth in Section 14.3. “Permanently disabled” for the purposes
of this Agreement means the inability, due to physical or mental ill health, to perform
the essential functions of the Executive’s job, with or without a reasonable
accommodation, for six (6) months during any one employment year irrespective of whether
such days are consecutive.
	 
	 	14.5.	 	Termination Due To Executive’s Death. In the event that the Executive dies during
the term of this Agreement, this Agreement shall terminate as of the date of the
Executive’s death. A termination due to the Executive’s death shall be treated for
all severance purposes as a Termination “Without Cause,” and the Executive’s estate
shall entitled to receive all of the severance compensation and benefits identified
in Section 14.3, provided that it complies with any applicable terms and conditions
set forth in Section 14.3. The Executive’s estate shall also be entitled to receive
any accrued but unpaid salary and bonuses, any accrued but unpaid vacation, and to be
reimbursed for any reimbursable expenses that have not been reimbursed prior to such
termination.
	 
	 	14.6.	 	Termination Without Cause Following a “Change of Control.” In the event that,
within eighteen (18) months following the date of a “Change of Control,” as defined below
(with this time period being referred to as the “Change of Control Period”), the
Executive’s employment with the Company is terminated by the Company without Cause, then,
in addition to the severance benefits provided for in Section 14.3 of this Agreement, the
Executive shall be entitled to certain enhanced severance benefits, contingent upon his
compliance with the terms and conditions serving as prerequisites to his eligibility for
severance compensation and benefits set forth in Section 14.3. Under such circumstances,
the Executive shall be entitled to the following:

	 	14.6.1.	 	Instead of six months of salary continuation, the Executive shall be entitled
to receive an additional six months of his basic salary, so that the Executive
shall be entitled to receive a total of twelve (12) months of

 

 

	 	 	 	salary continuation, which shall be payable over the twelve month period subsequent to
the effective date of the termination of his employment (the “Enhanced Severance
Period”); and
	 
	 	14.6.2.	 	The Executive shall receive a bonus payment (as contemplated under Section 7
of this Agreement), which shall be calculated by averaging the amount of the
annual bonuses received by the Executive for the prior two years, and
multiplying this average by 1.0, and this bonus amount shall be payable in equal
monthly installments over the Enhanced Severance Period;
	 
	 	14.6.3.	 	The Executive shall become fully vested in his outstanding options,
restricted stock or other equity awards; and
	 
	 	14.6.4.	 	Except to the extent expressly superseded by the foregoing, the Executive
shall be eligible to receive the severance compensation and benefits set forth
in Section 14.3 above.

For purposes of this Section, “Change of Control” means: (i) a sale or transfer of
substantially all of the assets of either Dollar Financial Corp. or Dollar Financial
Group, Inc. in any transaction or series of related transactions (other than sales in
the ordinary course of business); (ii) any merger, consolidation or reorganization to
which either Dollar Financial Corp. or Dollar Financial Group, Inc. is a party,
except for an internal reorganization or a merger, consolidation or reorganization in
which either Dollar Financial Corp. or Dollar Financial Group, Inc. is the surviving
corporation and, after giving effect to such merger, consolidation or reorganization,
the holders of Dollar Financial Corp. or Dollar Financial Group, Inc. outstanding
Common Stock (on a fully-diluted basis) immediately prior to the merger,
consolidation or reorganization will own, immediately following the merger,
consolidation or reorganization, capital stock holding a majority of the voting power
of Dollar Financial Corp. or Dollar Financial Group, Inc.; (iii) any sale or series
of sales of shares of the capital stock of Dollar Financial Corp. by the holders
thereof which results in any person or group of affiliated persons owning capital
stock holding twenty five percent (25%) or more of the voting power of Dollar
Financial Group, Inc. at the time of such sale or series of sales; (iv) a
circumstance where any individual, firm, corporation, limited liability company,
partnership, sole proprietorship, trust or other legally cognizable entity (“Person”)
other than an “Exempted Person” (as defined below) who or which, alone or together
with any affiliates or associates of that person, becomes the Beneficial Owner (as
defined in Rule 13d-3 of the Securities Exchange Act of 1934, as amended from time to
time) of twenty-five percent (25%) or more of the voting securities of Dollar
Financial Corp. (including all securities or other interests in Dollar Financial
Corp. having by

 

 

their terms ordinary voting power to elect members of the Board of
Directors of Dollar Financial Corp. collectively “Voting Securities”) except as a
result of (y) any acquisition of the Dollar Financial Corp.’s Voting Securities by
Dollar Financial Corp., or (z) any acquisition of Dollar Financial Corp’s Voting
Securities directly from Dollar Financial Corp., as authorized by the Board; (v) any
liquidation, dissolution or winding up of either Dollar Financial Corp. or Dollar
Financial Group, Inc.; (vi) any circumstance by which the persons who constitute
Dollar Financial Corp.’s Board of Directors as of the date hereof cease for any
reason to constitute a majority of the directors of Dollar Financial Corp., unless
the election or nomination for election of each director who is not a director on the
date hereof was approved by a vote of no less than a two-thirds (2/3) of the
directors then still in office who are directors on the date hereof or are new
directors approved by such vote; or (vii) Dollar Financial Corp. ceases to be a
company whose common stock is publicly traded on a major United States stock exchange
such as the NYSE or NASDAQ.

For purposes of this Agreement, an “Exempted Person” shall be defined as: (i) the
Executive or any group (as contemplated by Section 13(d)(3) of the U.S. Securities
Exchange Act of 1934) of which the Executive is a member; (ii) any Person that
controls (as defined in Rule 12b-2 of the U.S. Securities Exchange Act of 1934) the
Company as of the date of this Agreement or any group of which any such Person is a
member; (iii) any corporation or other entity owned directly or indirectly by the
shareholders of Dollar Financial Corp. or Dollar Financial Group, Inc. in
substantially the same proportions as their ownership of Dollar Financial Corp. or
Dollar Financial Group, Inc. Voting Securities; or (iv) any employee benefit plan or
related trust that is maintained or sponsored by Dollar Financial Corp. or Dollar
Financial Group, Inc. or any of its subsidiaries, or any trustee or other fiduciary
of Dollar Financial Corp. or Dollar Financial Group, Inc. or any subsidiary.

	15.	 	SALE OR RECONSTRUCTION OF THE COMPANY

The Executive will have no claim against the Company or any Group Company in respect of the
termination of his employment under this Agreement in connection with the sale of the whole or
a substantial part of the business or undertaking of the Company or on or in connection with
the sale by the Company of any Group Company or on or by reason of the liquidation of the
Company for the purposes of amalgamation or reconstruction (whether or not by reason of
insolvency) if the Executive is offered employment on no less favourable terms than those
contained in this Agreement (apart from the identity of the employer) with any person, firm or
company as a result of such sale or of such amalgamation or reconstruction.

 

 

	16.	 	RESTRICTIVE COVENANTS

	 	16.1.	 	Reasonableness of Restrictions
	 
	 	 	 	The Executive acknowledges that in the ordinary course of his employment the
Executive will be exposed to Confidential Information and the Company’s and Group’s
customers, suppliers and employees. The Executive acknowledges that such Confidential
Information and contact with customers, suppliers and employees may not be readily
available to others engaged in a business similar to that of the Company or any Group
Company or to the general public and that a disclosure of Confidential Information
and or contact with customers, suppliers and/or employees will be liable to cause
significant harm to the Company or any Group Company. The Executive agrees that the
provisions of this Section 16 are necessary and reasonable to protect the legitimate
interests of Dollar Financial Corp., Dollar Financial Group, Inc., the Company and
the Group and its/their customers.

	 	16.2.	 	Confidential Information
	 
	 	 	 	After the termination of employment for whatever reason the Executive will not at any
time and in any manner use or divulge or communicate to any person, firm, company or
other organisation any Confidential Information except if such disclosure is with the
prior written consent of the Company or required by a Court Order.
	 
	 	16.3.	 	Non Competition

	 	16.3.1.	 	The Executive agrees that during his employment with the Company and for
twenty four (24) months after the Termination Date he will not:

	 	16.3.1.1.	 	directly or indirectly engage in the UK, United States, Canada
or any other country in which Company now or hereafter during the
Executive’s period of employment, conducts business, in any activity
which, or any activity for any enterprise or entity a material part
of the business of which, is competitive with the business conducted
by Dollar Financial Corp., Dollar Financial Group, Inc., the
Company or any Group Company at the time of termination or any
business that Dollar Financial Corp., Dollar Financial Group, Inc.,
the Company or any Group Company proposed to be conducted during my
employment with the Company, either as an officer, director,
employee, independent contractor or as a 2% or

 

 

	 	 	 	greater owner, partner, or stockholder in a publicly traded entity;
	 
	 	16.3.1.2.	 	directly or indirectly cause or request a curtailment or
cancellation of any significant business relationship that Dollar
Financial Corp., Dollar Financial Group, Inc., the Company or any
Group Company has with a current or prospective vendor, business
partner, supplier or other service or goods provider that would have
a material adverse impact on the business of Dollar Financial Corp.,
Dollar Financial Group, Inc., the Company or any Group Company; or
	 
	 	16.3.1.3.	 	directly or indirectly induce or attempt to influence any
employee of Dollar Financial Corp., Dollar Financial Group, Inc.,
the Company or any Group Company to terminate his or her employment
with any such company.

	 	16.4.	 	Non-Solicitation/Dealing/Poaching/Interference

	 	16.4.1.	 	The Executive agrees that during his employment with the Company and for
twenty four (24) months after the Termination Date he will not:

	 	16.4.1.1.	 	directly or indirectly, on the Executive’s behalf or on behalf
of any third party, (i) target, recruit, solicit or induce, or
attempt to induce, any employees of Dollar Financial Corp., Dollar
Financial Group, Inc., the Company or any Group Company to terminate
their employment with, or otherwise cease their relationship with,
any such company; or (ii) solicit, divert, reduce, take away, or
attempt to divert, reduce, or take away, the business or patronage
(with respect to products or services of the kind or type developed,
produced, marketed, furnished or sold by Dollar Financial Corp.,
Dollar Financial Group, Inc., the Company or any Group Company with
which the Executive was substantively involved during the course of
his employment with the Company) of any (A) clients, customers,
franchisees, or accounts, or (B) prospective clients, customers,
franchisees, or accounts, that were contacted or solicited by the
Executive within six (6) months prior to the Termination Date, of
Dollar Financial Corp., Dollar 

 

 

	 	 	 	Financial Group, Inc., the Company or any Group Company.

	 	16.5.	 	The Executive acknowledges and understands that, in the event of a breach or
threatened breach of this provision by the Executive, Dollar Financial Corp., Dollar
Financial Group, Inc., the Company or any Group Company may suffer irreparable harm and
will therefore be entitled to injunctive relief to enforce this provision, which shall be
in addition to any other remedies available to it, as well as an award of attorneys’ fees
and costs to cover the expenses it incurs in seeking to enforce this provision.
	 
	 	16.6.	 	Notwithstanding Section 16.7 each covenant contained in Sections 16 shall be
construed as a separate covenant and, if one or more of the covenants is held to be
against the public interest or unlawful or in any way an unreasonable restraint of trade,
the remaining covenants shall continue to bind the Executive.
	 
	 	16.7.	 	Whilst the covenants in Section 16 are considered by the parties to be reasonable
in all the circumstances as at the date of this Agreement the Company may by notice in
writing at any time to the Executive reduce in whole or in part the extent or
duration of the restrictions in them in such manner and to such extent as the Company
in its absolute discretion determines and the Executive then agrees to be bound by
such additional covenants in the form reduced and the validity of any other covenant
and provision contained in this Agreement shall not be affected.
	 
	 	16.8.	 	If the Executive applies for or is offered new employment, or a new engagement,
before entering into any related contract the Executive will bring the terms of this
Agreement to the attention of the third party proposing, directly or indirectly, to
appoint or engage the Executive.
	 
	 	16.9.	 	Section 16 of this Agreement shall apply as though references to “Group Company”
were substituted for existing references to the “Company”. The Executive’s obligations
pursuant to such clause will with respect to each Group Company, constitute a separate
and distinct covenant and the invalidity or enforceability of any such covenant shall not
affect the validity or enforceability of the covenants in favour of the Company or any
other Group Company.

	17.	 	REDUCTION OF LENGTH OF POST TERMINATION RESTRICTIONS
	 
	 	 	The parties agree that the periods referred to in Sections 16.4 and 16.5 will be reduced by
one day for every day during which pursuant to Section 14.3 the Executive is excluded from the
Company’s premises and/or required not to undertake the Executive’s normal duties.

 

 

	18.	 	COMPANY PROPERTY
	 
	 	 	On request and in any event of the termination of his employment, the Executive will
immediately return to the Company all originals and copies of all documents, computer disks
and tapes and other tangible items in the Executive’s possession or under the Executive’s
control which belong to the Company or the Group and/or which contain or refer to any
Confidential Information or which in any other way relate or belong to the Company or the
Group.

	19.	 	INTELLECTUAL PROPERTY
	 
	 	 	All present and future copyright, know-how, rights to prevent unauthorised extraction and
other intellectual property rights in any product or work developed or partly developed by the
Executive during the course of the employment with the Company shall remain the sole and
exclusive property of the Company and this Agreement does not purport to grant, assign or
transfer any rights in such products or works to the Executive.

	20.	 	DISCIPLINARY AND GRIEVANCE PROCEDURES AND SUSPENSION

	 	20.1.	 	The Company has a disciplinary procedure a copy of which is available on request
from the Company. The disciplinary procedure is not incorporated by reference to this
Agreement and does not form part of it.
	 
	 	20.2.	 	If the Executive has a grievance in relation to the employment or is dissatisfied
with a disciplinary decision against the Executive, the Executive may apply in writing to
the Chief Operating Officer. This right to raise a grievance does not form part of the
Executive’s contract of employment.
	 
	 	20.3.	 	The Company is entitled (without prejudice to its rights consequently to terminate
this Agreement on the same or any other ground) to suspend the Executive on full pay
including bonuses, equity and allowances for so long as may be reasonably necessary to
carry out any investigation, including, but not limited to, any investigation under the
disciplinary procedure and hold a disciplinary hearing and may require the Executive
during such period: not to enter any premises of the Company or any Group Company and to
abstain from contacting any customers, suppliers or employees of the Company or any Group
Company provided that the Executive shall not be employed by or provide services to any
third party during the period for which he is suspended.

	21.	 	DEDUCTIONS

The Executive authorises the Company to deduct from his remuneration (including salary, pay in
lieu of notice, commission, bonus, and holiday pay) at any time during the employment

 

 

or in any event on termination of employment any monies owed by the Executive to the Company or any
Group Company.

	22.	 	DATA PROTECTION

	 	22.1.	 	The Executive gives the Company permission to collect, retain and process
information about him, including but not limited to details of his date of birth, sex and
ethnic origin. The Company warrants that this information will only be used in order that
the Company can monitor its compliance with the law and best practice in terms of equal
opportunities and non-discrimination.
	 
	 	22.2.	 	Should the Executive’s personal circumstances change such as to render out the
date the information held by the Company, he should notify the Company immediately.

	23.	 	NOTICES

	 	23.1.	 	Any notice given under this Agreement shall be in writing and shall be served on
the party (in the case of the Executive) at the above address or any other address
notified by the Executive to the Company or (in the case of the Company) at its
registered office.
	 
	 	23.2.	 	Any notice shall be taken to have been received on the date and time of its actual
receipt.

	24.	 	CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999
	 
	 	 	Notwithstanding any other provision of this Agreement, save in relation to Group Companies,
for the purposes of the Contracts (Rights of Third Parties) Act 1999, this Agreement is not
intended to, and does not, give any person who is not a party to it any right to enforce any
of its provisions.

	25.	 	WARRANTY
	 
	 	 	The Executive warrants to the Company that by virtue of entering into this Agreement the
Executive will not be in breach of any express or implied terms of any contract with or any
obligation to any third party binding upon the Executive.

	26.	 	COLLECTIVE AGREEMENTS
	 
	 	 	There are no collective agreements in place which affect the Executive’s employment with the
Company.

 

 

	27.	 	LAW AND JURISDICTION
	 
	 	 	The Agreement will be governed by and interpreted in accordance with English law and the
parties irrevocably agree to submit to the jurisdiction of the English courts over any claim
or matter or to settle any dispute which may arise out of or in connection with this Agreement
and that accordingly any proceedings may be brought in such courts.

	28.	 	ENTIRE AGREEMENT; AMENDMENTS
	 
	 	 	This Agreement contains the entire agreement and understanding of the parties hereto relating
to the subject matter hereof, and merges and supersedes all prior and contemporaneous
discussions, agreements and understandings of every nature between the parties hereto relating
to the employment of the Executive with the Company, including without limitation the Original Agreement. This Agreement may not be changed or modified,
except by an agreement in writing signed by each of the parties hereto.

 

 

EXECUTION AND DELIVERY

This document is executed as a deed and delivered on the date set out at the beginning of this
Agreement.

	 	 	 
	SIGNED as a DEED by
	 	 
	Dollar Financial UK Limited
	 	 
	acting by two Directors
	 	 
	or a Director and Secretary:
	 	/s/ Jeffrey
Weiss               Sept. 6, 2007
	 

	 	 
	 

	 	Jeffrey Weiss, Chairman and CEO / Date
	 
	 	 
	 

	 	/s/ Donald Gayhardt         Sept. 6, 2007
	 

	 	 
	 

	 	Donald Gayhardt, President / Date
	 
	 	 
	SIGNED as a DEED by 

Paul Mildenstein

	 	/s/ Paul
Mildenstein         Sept. 11, 2007 

Paul Mildenstein / Date

	 	 	 	 	 
	in the presence of:

	 	 	 	 
	 
	 	 	 	 
	Witness Signature:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Address:THIS NOTE IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY.  THIS NOTE
IS NOT EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
DEPOSITORY OR ITS NOMINEE, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS
A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE
DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE
REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

Unless
this Note is presented by an authorized representative of The Depository Trust
Company, a New York corporation (55 Water Street, New York, New York) ("DTC"),
to the Corporation or its agent for registration of transfer, exchange or
payment, and this Note is registered in the name of Cede & Co. or such
other name as requested by an authorized representative of DTC, and unless any
payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner
hereof, Cede & Co., has an interest herein.

THIS
NOTE IS NOT A SAVINGS ACCOUNT OR A DEPOSIT, IS NOT AN OBLIGATION OF OR
GUARANTEED BY ANY BANKING OR NONBANKING AFFILIATE OF BANK OF AMERICA
CORPORATION, AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR
ANY OTHER GOVERNMENTAL AGENCY.  

REGISTERED                                                                                     $500,000,000

NUMBER R-1                                                                                    CUSIP:
060505 DK7

                                    ISIN:  US060505DK72

BANK OF AMERICA
CORPORATION

5.375% SENIOR NOTES,
DUE SEPTEMBER 2012

BANK OF
AMERICA CORPORATION, a Delaware corporation (herein called the "Corporation,"
which term includes any successor corporation under the Indenture referred to
on the reverse hereof), for value received, hereby promises to pay to CEDE
& CO., or its registered assigns, the principal sum of FIVE HUNDRED MILLION
DOLLARS ($500,000,000) on September 11, 2012 (except to the extent redeemed or
repaid prior to that date).   The Corporation will pay interest on such
principal amount at the rate of 5.375% per annum, until payment of such
principal amount has been made or duly provided for, semi-annually in arrears
on March 11 and September 11 of each year (each, an "Interest Payment Date"). 
Interest shall be payable on each Interest Payment Date, beginning on March 11,
2008, and at the stated maturity (the "Maturity Date") or earlier redemption or
repayment.  If the Corporation shall default in the payment of interest due on
an Interest Payment Date, then this Note shall bear interest from the next
preceding Interest Payment Date for which interest has been paid, or, if no
interest has been paid on the Notes, from September 11, 2007 (the "Original
Issue Date").  

Interest on
this Note will accrue from the Original Issue Date until the principal amount
is paid or duly provided for.  Interest (including payments for partial
periods) will be computed on the basis of a 360-day year of twelve 30-day
months.  Interest payable on this Note on any Interest Payment Date or on the
Maturity Date, as the case may be, will include interest accrued from, and
including, the preceding Interest Payment Date for which interest has been paid
or duly provided for (or from, and including, the Original Issue Date if no
interest has been paid or duly provided for) to, but excluding, such Interest
Payment Date or Maturity Date, as the case may be.  If the Maturity Date or an
Interest Payment Date falls on a day that is not a Business Day (as defined
below), principal or interest payable with respect to such Maturity Date or
Interest Payment Date will be paid on the next Business Day with the same force
and effect as if

 

 made on such Maturity Date or Interest Payment Date, as the case
may be, and no additional interest shall accrue as a result of that
postponement.  The interest so payable, and punctually paid or duly provided
for, on any Interest Payment Date will be paid to the person in whose name this
Note (or one or more predecessor Notes evidencing all or a portion of the same
debt as this Note) is registered at the close of business on the Record Date
for such Interest Payment Date, whether or not a Business Day.  The "Record
Date" for Notes held in book-entry only form shall be one Business Day prior to
the relevant Interest Payment Date and, for Notes not held in book-entry only
form, March 1 and September 1 prior to the relevant Interest Payment Date. 
"Business Day" means any weekday that is not a legal holiday in New York, New
York or Charlotte, North Carolina and is not a day on which banking
institutions in those cities are authorized or required by law or regulation to
be closed.  

The principal
and interest on this Note are payable in immediately available funds in such coin
or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts, at the office or agency of the
Corporation in New York or such other places that the Corporation shall
designate as provided in the Indenture (as described on the reverse hereof);
provided, however, that interest may be paid, at the option of the Corporation,
by check mailed to the person entitled thereto at his address last appearing on
the registry books of the Corporation relating to the Notes.  Notwithstanding
the preceding sentence, payments of principal of and interest payable on the
Maturity Date will be made by wire transfer of immediately available funds to a
designated account maintained in the United States upon (i) receipt of written
notice by the Issuing and Paying Agent (as described on the reverse hereof)
from the registered holder hereof not less than one Business Day prior to the
due date of such principal and (ii) presentation of this Note to the Issuing
and Paying Agent, at The Bank of New York Trust Company, N.A., 101 Barclay
Street, New York, New York 10286.  Any interest not punctually paid or duly
provided for shall be payable as provided in the Indenture.  

Reference is
made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth at this place.

Unless the
certificate of authentication hereon has been executed by the Trustee or by an
authenticating agent on behalf of the Trustee by manual signature, this Note
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

                                                                           
2

IN WITNESS
WHEREOF, the Corporation has caused this Note to be duly executed, by manual or
facsimile signature, under its corporate seal or a facsimile thereof.

BANK OF
AMERICA CORPORATION

By:
_______________________________

[SEAL]                                                            Title:
Senior Vice President

ATTEST:

By:______________________

           Assistant Secretary

 

                                                                                  
3

CERTIFICATE
OF AUTHENTICATION

This is one of
the Securities of the series designated therein referred to in the
within-mentioned Indenture.

Dated:  September 11, 2007

THE BANK OF NEW YORK TRUST

COMPANY, N.A., 

as Trustee

By:__________________________

                       Authorized Signatory

 

      
4

[Reverse
of Note]

BANK OF AMERICA CORPORATION

5.375% SENIOR NOTES, DUE SEPTEMBER 2012

This Note is
one of a duly authorized series of Securities of the Corporation unlimited in
aggregate principal amount issued and to be issued under the Senior Indenture
dated January 1, 1995 (herein called the "Indenture"), between the Corporation
(successor to NationsBank Corporation) and The Bank of New York Trust Company,
N.A., successor to The Bank of New York, as Trustee (successor in interest to
U.S. Bank Trust National Association, as successor trustee to BankAmerica
National Trust Company, herein called the "Trustee," which term includes any
successor trustee under the Indenture), as supplemented by a First Supplemental
Indenture dated September 18, 1998, a Second Supplemental Indenture dated
May 7, 2001, a Third Supplemental Indenture dated July 28, 2004 and a
Fourth Supplemental Indenture dated April 28, 2006, to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights thereunder of the Corporation, the Trustee and the holders of
the Notes (as defined herein), and the terms upon which the Notes are, and are
to be, authenticated and delivered.  The series of which this Note is a part
also is designated as the Corporation's 5.375% Senior Notes, due September 2012
(herein called the "Notes"), initially in the principal amount of $650,000,000. 
The amount of Notes of this series may be increased by the Corporation in the
future.  The Trustee initially shall act as Security Registrar and Authenticating
and Issuing and Paying Agent in connection with the Notes.  

The Notes are
not subject to any sinking fund.  

            The provisions of Section 14.02 and Section 14.03 of the
Indenture do not apply to the Notes.

            As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Note may be registered on
the Security Register or registry books of the Corporation relating to the
Notes, upon surrender of this Note for registration of transfer at the office
or agency of the Corporation designated by it pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Corporation and the Trustee or the Security Registrar duly
executed by the registered holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Notes, of authorized denominations and
for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

         No service charge will be made for any such registration
of transfer or exchange, but the Corporation may require payment of a sum
sufficient to cover any tax, assessment or other governmental charge payable in
connection therewith.

        Prior to due presentment for registration of transfer of
this Note, the Corporation, the Trustee, the Issuing and Paying Agent, and any
agent of the Corporation may treat the person in whose name this Note is
registered as the absolute owner hereof for the purpose of receiving payment as
herein provided and for all other purposes, whether or not this Note be
overdue, and

                                                                                    
5

 neither the Corporation, the Trustee, the Issuing and Paying
Agent, nor any such agent of the Corporation shall be affected by notice to the
contrary.

          The Notes are issuable only as registered notes without
coupons in denominations of $5,000 and whole multiples of $5,000.  As provided
in the Indenture, and subject to certain limitations therein set forth, the
Notes are exchangeable for a like aggregate principal amount of notes of
different authorized denominations, as requested by the holder surrendering the
same.

          If an Event of Default (defined in the Indenture as (i)
the Corporation's failure to pay the principal of (or premium, if any, on) any
Notes when due, or to pay interest on the Notes within 30 days after the same
becomes due, (ii) the Corporation's breach of its other covenants contained in
this Note or in the Indenture, which breach is not cured within 90 days after
written notice by the Trustee or the holders of at least 25% in outstanding
principal amount of all Securities issued under the Indenture and affected
thereby, and (iii) certain events involving the bankruptcy, insolvency or
liquidation of the Corporation) shall occur with respect to the Notes, the
principal of all the Notes may be declared due and payable in the manner and
with the effect provided in the Indenture.

The Indenture
permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Corporation and the
rights of the holders of the Notes under the Indenture at any time by the
Corporation with the consent of the holders of not less than 662⁄3% in
aggregate principal amount of the Notes then outstanding and all other
Securities then outstanding under the Indenture and affected by such amendment
and modification.  The Indenture also contains provisions permitting the
holders of a majority in aggregate principal amount of the Notes then
outstanding and all other Securities then outstanding under the Indenture and
affected thereby, on behalf of the holders of all such Securities, to waive
compliance by the Corporation with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences.  Any such
consent or waiver by the holder of this Note shall be conclusive and binding
upon such holder and upon all future holders of this Note and of any Note
issued upon the registration of transfer hereof or in exchange herefor or in
lieu hereof whether or not notation of such consent or waiver is made upon this
Note.

No reference
herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Corporation, which is absolute and
unconditional, to pay the principal of and interest on this Note at the times,
place, and rate, and in the coin or currency, herein prescribed.

No recourse
shall be had for the payment of the principal of or the interest on this Note,
or for any claim based hereon, or otherwise in respect hereof, or based on or
in respect of the Indenture or any indenture supplemental thereto, against any
incorporator, stockholder, officer, or director, as such, past, present, or
future, of the Corporation or any predecessor or successor corporation, whether
by virtue of any constitution, statute, or rule of law, or by the enforcement
of any assessment or penalty or otherwise, all such liability being, by the
acceptance hereof and as part of the consideration for issue hereof, expressly
waived and released.

           The Notes of this series shall be dated the date of
their authentication.

                                                                              
6

 

          All terms used in this Note which are not defined
herein, but are defined in the Indenture shall have the meanings assigned to
them in the Indenture.

If the Notes
are to be issued and outstanding pursuant to a book-entry system, the following
paragraph is applicable: The Notes are being issued by means of a book-entry
system with no physical distribution of certificates to be made except as
provided in the Indenture.  The book-entry system maintained by DTC will evidence
ownership of the Notes, with transfers of ownership effected on the records of
DTC and its participants pursuant to rules and procedures established by DTC
and its participants.  The Corporation will recognize Cede & Co., as
nominee of DTC, while the registered holder of the Notes, as the owner of the
Notes for all purposes, including payment of principal, premium, if any, and
interest, notices, and voting.  Transfers of the principal, premium, if any,
and interest to beneficial owners of the Notes by participants of DTC will be
the responsibility of such participants and other nominees of such beneficial
owners.  So long as the book-entry system is in effect, the selection of any
Notes to be redeemed will be determined by DTC pursuant to rules and procedures
established by DTC and its participants.  The Corporation will not be
responsible or liable of such transfers or payments or for maintaining,
supervising, or reviewing the records maintained by DTC, its participants, or
persons acting through such participants.

 

                                                                            
7

ABBREVIATIONS

The following
abbreviations, when used in the inscription on the face of the within Note
shall be construed as though they were written out in full according to
applicable laws or regulations:

TEN COM‐‐   as tenants
in common

                        TEN ENT‐‐     as
tenants by the entireties

                        JT TEN‐‐         as
joint tenants with right of survivorship and not as tenants in common

                        UNIF GIFT MIN ACT‐‐............................Custodian..............................

                                                                         (Cust)                                 
(Minor)

Under Uniform Gifts to Minors Act

.........................................................

                                                                       (State)

Additional
abbreviations may also be used though not in the above list.

__________________________________

ASSIGNMENT

FOR VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

[PLEASE PRINT OR
TYPEWRITE NAME AND ADDRESS

INCLUDING
ZIP CODE, OF ASSIGNEE]

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

Please Insert Social Security or Other 

           Identifying
Number of Assignee: ______________________________

the within Note and all rights
thereunder, hereby irrevocably constituting and appointing
_____________________________________ Attorney to transfer said Note on the
books of the Corporation, with full power of substitution in the premises.

Dated: _______________________               _________________________________________

NOTICE: The signature to this assignment must correspond
with the name as it appears upon the face of the within Note in every
particular, without alteration or enlargement or any change whatever and must
be guaranteed.

  

                                                                                        
8

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