Document:

EX-10.1

	 	 	 	 	 
	BANK OF AMERICA, N.A.

	 	WACHOVIA BANK, NATIONAL ASSOCIATION
	 	RBC CENTURA BANK

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

This AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (“Agreement”) is entered into as of the
5th day of May, 2006, by and among BANK OF AMERICA, N.A., WACHOVIA BANK, NATIONAL
ASSOCIATION, RBC CENTURA BANK and PORTFOLIO RECOVERY ASSOCIATES, INC., a Delaware corporation
(“Borrower”).

RECITALS

Borrower, Bank of America, N.A. and Wachovia Bank, National Association entered into a Loan
and Security Agreement on November 29, 2005, and the parties to the Original Loan Agreement now
desire to add RBC Centura Bank as a party thereto as one of the “Banks”, and by becoming a party
hereto as one of the Banks, RBC will pay to each of Wachovia and to BOA an amount equal to one-half
(1/2) of RBC’s Borrowing Percentage of amounts outstanding hereunder as of the date of execution of
this Agreement. Borrower wishes to continue to obtain credit from time to time from the Banks, and
the Banks desire to extend credit to Borrower for use by Borrower in its business. This Agreement
sets forth the terms and conditions on which the Banks will advance credit to Borrower.

AGREEMENT

The parties agree as follows:

1. DEFINITIONS AND INTERPRETATION.

1.1 Definitions. Capitalized terms used herein and not defined in the specific section
in which they are used shall have the meanings assigned to such terms in Exhibit A. Terms
not defined in a specific section or in Exhibit A which are defined in the Code shall have
the meanings assigned to such terms in the Code.

1.2 Accounting Terms. All accounting terms not specifically defined in Exhibit
A shall be construed in accordance with GAAP and all calculations shall be made in accordance
with GAAP. The term “financial statements” shall include the accompanying notes and schedules.

1.3 Use and Application of Terms. To the end of achieving the full realization by the
Banks of their rights and remedies under this Agreement, including payment in full of the
Obligations, in using and applying the various terms, provisions and conditions in this Agreement,
the following shall apply: (i) the terms “hereby”, “hereof’, “herein”, “hereunder” and any similar
words refer to this Agreement; (ii) words in the masculine gender mean and include correlative
words of the feminine and neuter genders and words importing the singular numbered meaning include
the plural number, and vice versa; (iii) words importing persons include firms, companies,
associations, general partnerships, limited partnerships, limited liability partnerships, limited
liability limited partnerships, limited liability companies, trusts, business trusts, corporations
and other registered or legal organizations, including public and quasi-public bodies, as well as
individuals; (iv) the use of the terms “including” or “included in”, or the use of examples
generally, are not intended to be limiting, but shall mean, without limitation, the examples
provided and others that are not listed, whether similar or dissimilar; (v) the phrase “costs and
expenses”, or variations thereof, shall include, without limitation, the reasonable fees of the
following persons: attorneys, legal assistants, accountants, engineers, surveyors, appraisers and
other professionals and service providers; (vi) as the context requires, the word “and” may have a
joint meaning or a several meaning and the word “or” may have an inclusive meaning or an exclusive
meaning; (vii) this Agreement shall not be applied, interpreted and construed more strictly against
a person because that person or that person’s attorney drafted this Agreement; and (viii) wherever
possible each provision of this Agreement and the other Loan Documents shall be interpreted and
applied in such manner as to be effective and valid under applicable Requirements of Law, but if
any provision of this Agreement or any of the other Loan Documents shall be prohibited or invalid
under such law, or the application thereof shall be prohibited or invalid under such law, such
provision shall be ineffective to the extent of such

prohibition or invalidity without invalidating the remainder of such provision or the remaining
provisions, or the application thereof shall be in a manner and to an extent permissible under
applicable Requirements of Law.

2. CREDIT EXTENSIONS.

2.1 (a) Credit Extensions. Subject to and upon the terms and conditions of this
Agreement and provided that no Event of Default has occurred and is continuing, the Banks shall
make available to Borrower the Revolving Facility and Credit Extensions thereunder generally
described as follows: a revolving line of credit in an amount equal to the lesser of: (i)
Seventy-Five Million Dollars ($75,000,000) and (ii) twenty percent (20%) of Borrower’s and
Portfolio Recovery Associates, LLC’s Estimated Remaining Collections of all Eligible Asset Pools
(the “Revolving Facility”). The Revolving Facility and related Credit Extensions which are to be
made available to Borrower are more fully described below in this Section 2.1 and unless otherwise
provided in this Agreement, the Revolving Facility and related Credit Extensions shall be evidenced
by one or more Promissory Notes from Borrower to the Banks and the Credit Extensions shall bear
interest, and the Credit Extensions, the interest and the fees, charges, premiums and costs and
expenses associated therewith, shall be repayable in accordance with the terms of such Promissory
Notes and this Agreement.

(b) Revolving Facility. At any time from the date hereof through the Maturity Date,
Borrower may request and the Banks agree to make advances (“Advance” or “Advances”) to Borrower to
finance working capital needs for its business and to finance acquisitions permitted by Section 7.3
- and not for any other purpose. The aggregate amount of outstanding Advances shall not exceed at
any time the Committed Revolving Line. If no Event of Default has occurred and is continuing,
amounts borrowed under the Revolving Facility may be repaid and reborrowed at any time prior to the
Maturity Date.

2.2 Credit Extensions — Disbursements. (a) Whenever Borrower desires an Advance,
Borrower shall notify each Bank by facsimile transmission or telephone no later than 10:00 a.m.
eastern time, on the Business Day on which Borrower desires the Advance to be made. Each
notification by facsimile transmission shall include the information requested on the form attached
as Exhibit B, shall be submitted substantially in the form of Exhibit B and shall
be signed by a Responsible Officer or a designee thereof. Each notification by telephone shall
include the information requested on the form attached as Exhibit B and each notification
by telephone shall be followed within one Business Day by a facsimile transmission which meets the
criteria regarding a facsimile transmission. Each Bank shall be entitled to rely on any telephonic
notice given by a person who such Bank reasonably believes to be a Responsible Officer or a
designee thereof. No Bank shall have any liability to Borrower or any other person for its failure
to make an Advance on the date requested by Borrower, unless such failure is the result of willful
misconduct or gross negligence of such Bank; and if such Bank’s failure is a result of willful
misconduct or gross negligence, its liability shall be limited to actual damages only — no Bank
shall be liable for indirect, speculative, consequential or punitive damages and losses. Where
Borrower maintains its operating deposit account with a Bank, such Bank will credit the amount of
the Advances made by such Bank to such account.

(b) Borrower shall use its best efforts to ensure that each request for an Advance is made of
all Banks, in accordance with each Bank’s Borrowing Percentage, and all payments and pre-payments
to the Banks shall be made Pro Rata, it being understood that the parties intend that Credit
Extensions hereunder, and outstanding balances to each Bank, shall approximate each Bank’s
Borrowing Percentage as closely as practicable.

2.3 Overadvances. If, at any time, the aggregate amount of the outstanding principal
under any Credit Extension exceeds the Committed Revolving Line, the Borrower shall immediately pay
to each Bank, in cash, its Pro Rata portion of such excess.

2.4 Charging of Payments. A Bank may, after the occurrence of an Event of Default, at
its option, set-off and apply to the Obligations and otherwise exercise its rights of recoupment as
to any and all (i) balances and deposits of Borrower held by such Bank, (ii) indebtedness and other
obligations at any time owing to or for the credit or the account of Borrower by such Bank and by
any of such Bank’s Affiliates. A Bank may, after notice to Borrower at its option, also charge all
payments required to be made on any of the Obligations against the Committed Revolving Line. If a
Bank charges the aforementioned payments against the Committed Revolving Line, the same shall be
deemed an Advance thereunder and the amount of the Advance shall thereafter accrue interest at the
interest rate applicable from time to time to Advances; and if a Bank charges payments as
aforesaid, such Bank may, in its discretion, limit, declare a moratorium on and terminate
Borrower’s right under this Agreement to receive additional Advances, after notice to Borrower and
each other Bank, and a Bank’s decision to do one of the foregoing does not prevent it from later
doing any one or more of the others.

2.5 Fees. In addition to the other fees, charges, costs and expenses required to be
paid by Borrower under this Agreement and the other Loan Documents, Borrower shall pay to the Banks
the fees, charges, costs and expenses set forth in this Section 2.5.

(a) Unused Facility Fee. Borrower shall pay to each Bank an annualized threetenths of
one percent (0.30%) Unused Facility Fee, which shall be payable monthly on the first day of each
month, and which shall be based upon the average amount of the Unused Revolving Facility for the
preceding calendar month for each Bank relative to each such Bank’s Commitment. The average amount
of the Unused Revolving Facility for any partial month shall be calculated based on the unused
amounts in such partial month.

(b) Bank Expenses. On the Closing Date, Borrower shall pay to the Banks all reasonable
Bank Expenses incurred through the Closing Date and shall pay, as and when demand is so made by a
Bank to Borrower, all reasonable Bank Expenses incurred relating to completion, after the Closing
Date, of matters related to closing of this Agreement. Borrower shall be responsible for its own
fees and expenses, including its legal fees.

2.6 Documentary and Intangible Taxes; Additional Costs. To the extent not prohibited
by law and notwithstanding who is liable for payment of the taxes and fees, Borrower shall pay, on
a Bank’s demand, all intangible personal property taxes, documentary stamp taxes, excise taxes and
other similar taxes assessed, charged and required to be paid in connection with the Credit
Extensions and any extension, renewal and modification thereof, or assessed, charged and required
to be paid in connection with this Agreement, any of the other Loan Documents and any extension,
renewal and modification of any of the foregoing. If, with respect to this Agreement or the
transactions hereunder, any Requirement of Law (i) subjects a Bank to any tax (except federal,
state and local income taxes on the overall net income of a Bank), (ii) imposes, modifies and deems
applicable any deposit insurance, reserve, special deposit or similar requirement against assets
held by, or deposits in, or loans by a Bank, or (iii) imposes upon a Bank any other condition, and
the result of any of the foregoing is to increase the cost to such Bank, reduce the income
receivable by such Bank or impose any expense upon such Bank with respect to the Obligations,
Borrower agrees to pay to such Bank the amount of such increase in cost, reduction in income or
additional expense within thirty (30) days following presentation by such Bank of a statement of
the amount and setting forth such Bank’s calculation thereof, all in reasonable detail, which
statement shall be deemed true and correct absent manifest error.

2.7 Term of Agreement. This Agreement shall become effective on the Closing Date and
shall continue in full force and effect until the last to occur of (i) payment in full of all of
the Obligations or (ii) termination of the Banks’ obligations to make Credit Extensions under this
Agreement. Notwithstanding the foregoing, each Bank shall have the right to limit, declare a
moratorium on and terminate its obligation to make Credit Extensions under this Agreement
immediately and without notice to Borrower (but with immediate written notice to each other Bank)
upon the occurrence and during the continuance of an Event of Default; and such action by a Bank
shall not constitute a termination of this Agreement, shall not constitute a termination of
Borrower’s obligations under this Agreement or the other Loan Documents and shall not adversely
affect or impair any Bank’s security interests in the Collateral. A Bank’s decision to do any one
of the foregoing (i.e., limit, declare a moratorium and terminate its obligations to make Credit
Extensions) shall not prevent it from exercising any one or more of the other options available to
it at any other time. The Banks shall review the Maturity Date annually, and shall notify Borrower
(pursuant to a notice substantially in the form of the Notice of Extension attached hereto) not
less than sixty (60) days before each anniversary of this Agreement only if they intend to extend
the Maturity Date to a date which is one year beyond the then current Maturity Date.

3. CONDITIONS OF CREDIT EXTENSIONS.

3.1 Conditions Precedent to Initial Credit Extension. The obligation of any Bank to
make the initial Credit Extension is subject to the condition precedent that all of the conditions
and requirements set forth in this Section 3.1 and Section 3.2 have been satisfied and completed,
or the satisfaction and completion thereof waived by the Banks. If all of the conditions are not
met to all Banks’ satisfaction, or the completion thereof waived by each Bank, each Bank may, at
its option, (i) withhold disbursement until the same are met, (ii) close and require that any
unsatisfied conditions be satisfied as a condition subsequent to closing within such period of time
as may be designated by such Bank or (iii) terminate its obligation to make any Credit Extension
and recover from Borrower all Bank Expenses incurred by such Bank in connection with its
preparations for making the Credit Extensions, together with the fees and other costs and expenses
required to be paid by Borrower under the Commitment. A waiver by the Banks of a condition must be
in writing to be effective and a waiver as to one or more conditions shall not constitute a waiver
as to other conditions and shall not establish a “course of dealing or practice” that would require
a waiver of the same or a similar condition at some later time. A waiver shall not be deemed
effective against the rights of a Bank unless expressly given by such Bank.

(a) Loan Documents, etc. Each Bank shall have received an original of this Agreement,
duly executed by Borrower and any other persons who are parties hereto, and all of the information,
certifications, certificates, authorizations, consents, approvals, title and other insurance
policies and commitments, financial statements, financing statements, agreements, documents and
records as the Banks and their counsel may deem reasonably necessary or appropriate.

(b) Payment of Fees. Each Bank shall have received payment of the fees and Bank
Expenses, then due, as specified in Section 2.

(c) No Event of Default. No Event of Default shall have occurred and be continuing as
of the Closing Date, or after giving effect to the initial Credit Extension to be made at or
immediately after closing.

(d) Additional Matters. All other legal and non-legal matters as any Bank or its
counsel deems reasonably necessary or appropriate to be satisfied, completed and received prior to
the initial Credit Extension shall be satisfied, completed and received in form and substance
satisfactory to such Bank and its counsel; and the Bank’s counsel shall have received duly executed
counterpart originals, or certified or other such copies of all records as such counsel may
reasonably request.

3.2 Conditions Precedent to All Credit Extensions. The obligation of any Bank to make
each Credit Extension, including the initial Credit Extension, is further subject to all of the
conditions and requirements set forth in this Section 3.2 being satisfied and completed, or the
satisfaction and completion thereof waived by each Bank.

(a) Loan Payment/Advance Request Form. Each Bank shall have received, as and when
required, a completed Loan Payment/Advance Request Form in the form of Exhibit B attached
hereto.

(b) Representations and Warranties; No Event of Default. The representations and
warranties referenced in Section 5 and in the other Loan Documents shall be true and correct on and
as of the date of such Loan Payment/Advance Request Form and on the effective date of each Credit
Extension as though made at and as of each such date, and no Event of Default shall have occurred
and be continuing, or would exist after giving effect to such Credit Extension (provided, however,
that those representations and warranties expressly referring to another date shall be true,
correct and complete as of such date). The making of each Credit Extension shall be deemed to be a
representation and warranty by Borrower on the date of such Credit Extension as to the accuracy of
the facts referred to in this subsection.

(c) Audit of Collateral. At any Bank’s election, such Bank shall have received from
Borrower an internally prepared report of the Collateral (including, without limitation, Borrower’s
and Portfolio Recovery Associates, LLC’s Asset Pools), in a format consistent with the form
included in Borrower’s quarterly and annual public filings. In the event Borrower’s accountants
make material corrections or modifications to the report presented to them for review, Borrower
shall immediately inform each Bank of such corrections or modifications.

4. CREATION OF SECURITY INTEREST.

4.1 Grant of Security Interest. Borrower grants and pledges to the Banks a continuing
security interest in all presently existing and hereafter acquired or arising Collateral to secure
the prompt repayment of any and all Obligations and to secure the prompt performance by Borrower of
each of its covenants, duties and obligations under the Loan Documents. Except as set forth in the
Schedule, such security interest constitutes a valid, first priority security interest in the
presently existing Collateral, and will constitute a valid, first priority security interest in
Collateral acquired or arising after the date hereof. Notwithstanding any limitation of, moratorium
on or termination of any Bank’s obligation to make Credit Extensions under this Agreement, the
Banks’ security interest on the Collateral shall remain in full force and effect for so long as any
Obligations are outstanding.

4.2 Delivery of Additional Documentation Required. (a) To the extent that such
documentation is physically available to Borrower; Borrower shall from time to time execute and
deliver to any Bank, at the request of such Bank, all Negotiable Collateral, all Financing
Statements and other documents and records that such Bank may request, in form and substance
satisfactory to such Bank and its counsel, to perfect and continue perfected such Bank’s security
interests in the Collateral and in order to fully consummate all of the transactions contemplated
under the Loan Documents. Borrower hereby consents to the filing by any Bank of Financing
Statements and such other instruments and documents in any jurisdictions or locations deemed
advisable or necessary in such Bank’s discretion to preserve, protect and perfect such Bank’s
security interest and rights in the Collateral. Borrower further consents to and ratifies the
filing of such Financing Statements and other instruments and documents prior to the Closing Date.
If Borrower has executed and delivered to any Bank a separate security agreement or agreements in
connection with any or all of the Obligations, that security agreement or those security agreements
and the security interests created therein shall be in addition to and not in substitution of this
Agreement and the security interests created hereby, and this Agreement shall be in addition to and
not in substitution of the other security agreement or agreements and the security interests
created thereby, but shall be subject at all times to the Intercreditor Agreement. In all cases
this Agreement and the aforesaid security agreement or agreements, as well as all other evidences
or records of any and all of the Obligations and agreements of Borrower, the Banks and other
persons who may be obligated on any of the Obligations, shall be applied and enforced in harmony
with and in conjunction with each other to the end that each Bank realizes fully upon its rights
and remedies in each and the Liens created by each; and, to the extent conflicts exist between this
Agreement and the other security agreements and records, they shall be resolved in favor of the
Banks for the purpose of achieving the full realization of the Banks’ collective rights and
remedies thereunder and the Liens as aforesaid.

(b) Borrower shall take reasonable steps to provide that computer or other records
representing or evidencing an Account contain (by way of stamp, legend or other method satisfactory
to the Banks) the following language: “Pledged to Bank of America, Wachovia Bank and RBC Centura
Bank as Collateral” or such other language as the Banks may from time to time require. After an
Event of Default, if requested by any Bank, all contracts, documents, instruments and chattel paper
evidencing an Account shall contain (by way of stamp, legend or other method satisfactory to such
Bank) the above quoted language. Failure to deliver physical possession of any instruments,
documents, or writings in respect of any Account to any Bank, or all of them, shall not invalidate
any such Bank’s security interest therein. To the extent that possession may be required by
applicable law for perfection of a Bank’s security interest, the original chattel paper and
instruments representing the Accounts (to the extent available) shall be deemed to be held by such
Bank, although kept by Borrower or Guarantor as the custodial agent of such Bank(s). Borrower or
Guarantor (as the case may be) shall, at any reasonable time and at Borrower’s or Guarantor’s own
expense, upon any Bank’s reasonable request, physically deliver to such Bank on computer disk or
other electronic data storage means which shall be machine readable in Microsoft Access or such
other form as mutually agreed upon by the parties hereto, copies of all Accounts (including any
instruments, documents or writings in respect of any Account together with all other instruments,
documents or writings in respect of any collateral securing each Account, then in Borrower’s or
Guarantor’s control) assigned to a Bank to any reasonable place or places designated by such Bank.
All Accounts shall, regardless of their location, be deemed to be under the Banks’ dominion and
control (with both paper and computer files so labeled) and deemed to be in the Bank or Banks’, as
applicable, possession.).

(c) A copy of any notice or request by any Bank pursuant to this Section 4.2, and any response
or information provided by Borrower to any Bank pursuant to this Section 4.2, shall be delivered to
all other Banks simultaneously.

4.3 Power of Attorney. Borrower does hereby irrevocably constitute and appoint each
Bank, or any of them, its true and lawful attorney with full power of substitution, for it and in
its name, place and stead, to execute, deliver and file such agreements, documents, notices,
statements and records, to include, without limitation, Financing Statements, and to do or
undertake such other acts as any such Bank, after notice to Borrower and each other Bank, and after
providing a copy of any such item to Borrower in its sole discretion, deems necessary or advisable
to effect the terms and conditions of this Agreement, the other Loan Documents and to otherwise
preserve, protect and perfect the security of the security interest in the Collateral. The
foregoing appointment is and the same shall be coupled with an interest in favor of the Banks.
Notwithstanding the foregoing present grant of a power of attorney by Borrower to the Banks, except
as otherwise provided in this Agreement and except with respect to filing of Financing Statements
and other actions any Bank deems necessary or appropriate to preserve, protect, and perfect or
continue the perfection of its security interests in the Collateral, no Bank shall exercise the
rights granted to it under this Section 4.3 until after the occurrence of an Event of Default, or
the occurrence of an event which, upon the giving of any required notice or the lapse of any
required period of time, would be an Event of Default.

4.4 Right to Inspect and Audit. Any Bank (through any of its officers, employees,
agents or other persons designated by such Bank) shall have the right, at its own expense (except
after the occurrence of an Event of Default at Borrower’s expense and without notice) upon
reasonable prior notice, from time to time during Borrower’s usual business hours, to inspect
Borrower’s Books and to make copies thereof and to inspect, check, test, audit and appraise the
Collateral and Borrower’s business affairs in order to verify Borrower’s financial condition or the
amount, condition of, or any other matter relating to the Collateral and Borrower’s compliance with
the terms and conditions of this Agreement and the other Loan Documents. A Bank shall make
reasonable efforts to minimize disruption of Borrower’s operations when conducting such
work. Borrower shall permit representatives of the Banks to discuss the business, operations,
properties and financial and other conditions of Borrower with its officers, board members,
executives, managers, members, partners, employees, agents, independent certified public
accountants and others, as applicable. The representatives of the Banks will maintain the
confidentiality of non-public information obtained from such discussions or otherwise and will not
trade the Borrower’s stock based upon material, non-public information concerning the Company that
the representatives of the Banks may obtain. Notwithstanding the foregoing provisions of this
Section 4.4, the Banks shall not be required to give prior notice or limit their inspections to
normal business hours if they, or any of them, deem an emergency or other extraordinary situation
to exist with respect to the Collateral, Borrower’s Books and their other rights hereunder.

4.5 Collection of Accounts. In addition to its other rights and remedies in this
Agreement, the Banks shall have the rights and remedies set forth in this Section 4.5, all of which
may be exercised by the Banks, or any of them, upon the occurrence of an Event of Default, or the
occurrence of an event which, upon the giving of any required notice or the lapse of any required
period of time, would be an Event of Default.

(a) After the occurrence of an Event of Default, but subject to the terms of the Intercreditor
Agreement, or the occurrence of an event or condition which, after the giving of any required
notice and the lapse of any required period of time, would be an Event of Default, each Bank is
authorized and empowered at any time in its sole discretion (i) to demand, collect, settle,
compromise for, recover payment of, to hold as additional security for the Obligations and to apply
against the Obligations any and all sums which are now owing and which may hereafter arise and
become due and owing upon any of said Accounts and upon any other obligation to Borrower (to
include making, settling, adjusting, collecting and recovering payment of all claims under and
decisions with respect to Borrower’s policies of insurance); (ii) to enforce payment of any Account
and any other obligation of any person to Borrower either in its own name or in the name of
Borrower; (iii) to endorse in the name of Borrower and to collect any instrument or other medium of
payment, whether tangible or electronic, tendered or received in payment of the Accounts that
constitute Collateral and any other obligation to Borrower; (iv) to sign Borrower’s name on any
invoice or bill of lading relating to any Account, drafts against account debtors, schedules and
assignments of Accounts, verifications of Accounts and notices to account debtors; and (v) dispose
of any Collateral constituting Accounts and to convert any Collateral constituting Accounts into
other forms of Collateral. But, under no circumstances shall any Bank be under any duty to act in
regard to any of the foregoing matters. Without limiting the provisions of Section 4.3 hereof, but
in addition thereto, Borrower hereby appoints each Bank and any employee or representative of each
Bank as such Bank may from time to time designate, as attorneys-in-fact for Borrower, to sign and
endorse in the name of Borrower, to give notices in the name of Borrower and to perform all other
actions necessary or desirable in the reasonable discretion of such Bank to effect these provisions
and carry out the intent hereof. Borrower hereby ratifies and approves all lawful acts of such
attorneys-in-fact and except as otherwise provided for herein, neither any Bank nor any other such
attorneys-in-fact will be liable for any lawful acts of commission or omission nor for any error of
judgment or mistake of fact or law. The foregoing power, being coupled with an interest, is
irrevocable so long as any Account pledged and assigned to such Bank remains unpaid and this
Agreement or any other Loan Document is in force. The costs and expenses of such collection and
enforcement shall be home solely by Borrower whether the same are incurred by a Bank or on behalf
of a Bank or Borrower and, if paid or incurred by a Bank, the same shall be an Obligation owing by
Borrower to such Bank, payable on demand with interest at the Default Rate, and secured by this
Agreement and the other Loan Documents. Borrower hereby irrevocably authorizes and consents to all
account debtors and other persons communicating after an Event of Default with any Bank, or its
agent, with respect to Borrower’s property, business and affairs and to all of the foregoing
persons acting after an Event of Default upon and in accordance with a Bank’s, or its
representative’s, instructions, directions and demands, including, without limitation, such Bank’s
request and demand to pay money and deliver other property to such Bank or Bank’s representatives,
all without liability to Borrower for so doing, except as otherwise provided herein.

(b) After the occurrence of an Event of Default, or the occurrence of an event or condition
which after the giving of any required notice or the lapse of any required period of time, would be
an Event of Default, at any Bank’s request, Borrower will forthwith upon receipt of all checks,
drafts, cash and other tangible and electronic remittances in payment or on account of Borrower’s
Accounts, deposit the same in a special bank account maintained with such Bank or its
representative, over which such Bank and its representative (as applicable) have the sole power of
withdrawal and will designate with each such deposit the particular Account upon which the
remittance was made. The funds in said account shall be held by such Bank as security for the
Obligations (and shall be subject to the terms of the Intercreditor Agreement). Said proceeds shall
be deposited in precisely the form received except for the endorsement of Borrower where necessary
to permit collection of items, which endorsement Borrower agrees to make, and which endorsement the
Bank and its representative (as applicable) are also hereby authorized to make on Borrower’s
behalf. Pending such deposit, Borrower agrees that it will not commingle any such checks, drafts,
cash and other remittances with any of Borrower’s funds or property, but will hold them separate
and apart therefrom and upon an express trust for the Banks until deposit thereof is made in the
special account. After the occurrence of an Event of Default, or the occurrence of an event or
condition which after the giving of any required notice or the lapse of any required period of
time, would be an Event of Default, the Bank maintaining such account may at anytime and from time
to time, in its sole discretion but subject to the terms of the Intercreditor Agreement, apply any
part of the credit balance in the special account to the payment of all or any of the Obligations,
and to payment of any other obligations owing to the Banks under or on account of this Agreement or
any of the other Loan Documents. On the Maturity Date and upon the full and final payment of all of
the Obligations and the other obligations as aforesaid, together with a termination of all Bank’s
obligation to make additional Advances, each Bank will pay over to the Borrower any excess good and
collected funds received by such Bank from Borrower, whether received as a deposit in the special
account or received as a direct payment on any of the Obligations.

(c) After the occurrence of an Event of Default, or the occurrence of an event or condition
which after the giving of any required notice or the lapse of any required period of time, would be
an Event of Default, each Bank shall have the absolute and unconditional right to apply for and to
obtain the appointment of a receiver, custodian or similar official for all or a portion of the
Collateral, including, without limitation, the Accounts, to, among other things, manage and sell
the same, or any part thereof, and to collect and apply the proceeds therefrom to payment of the
Obligations as provided in this Agreement and the other Loan Documents. Any such receiver,
custodian or similar official, if required, shall be qualified and licensed as a collection agency
in each state or territory in which any customer Accounts may be so collected or managed. In the
event of such application, Borrower consents to the appointment of such qualified and licensed
receiver, custodian or similar official and agrees that such receiver, custodian or similar
official may be appointed without further notice to Borrower beyond any notice required to be given
to Borrower prior to the occurrence of an Event of Default, if any, without regard to the adequacy
of any security for the Obligations secured hereby and without regard to the solvency of Borrower
or any other person who or which may be liable for the payment of the Obligations or any other
obligations of Borrower hereunder. All costs and expenses related to the appointment of a receiver,
custodian or other similar official hereunder shall be the responsibility of Borrower, but if paid
by any Bank, Borrower hereby agrees to pay to such Bank, on demand, all such costs and expenses,
together with interest thereon from the date of payment at the Default Rate. All sums so paid by a
Bank, and the interest thereon, shall be an Obligation owing by Borrower to such Bank, and secured
by this Agreement and the other Loan Documents. Notwithstanding the appointment of any receiver,
custodian or other similar official, each Bank shall be entitled as pledgee to the possession and
control of any cash, deposits, accounts, account receivables, documents, chattel paper, documents
of title or instruments at the present or any future time held by, or payable or deliverable under
the terms of the Loan Documents to such Bank. If the balance of the Obligation outstanding is ZERO
at any time prior to the Maturity Date, and no Event of Default has occurred or is continuing and
the Banks have no further obligation to make Advances, the Bank or Banks, as applicable shall
terminate the appointment of any such receiver custodian or similar official.

5. REPRESENTATIONS AND WARRANTIES.

Borrower represents and warrants to each Bank that, as of the date of this Agreement, there
are no Subsidiaries of Borrower other than the Guarantor. Further, Borrower represents and warrants
to each Bank that the certifications, representations and warranties set forth in the Certificate
of Borrower which has been executed and delivered by Borrower to each Bank contemporaneously with
the execution and delivery of this Agreement by Borrower to each Bank are true, correct and
accurate as of the date of this Agreement or such other date as may be specifically set forth in a
particular certification, representation or warranty. Borrower agrees that all certifications,
representations and warranties set forth herein shall be continuing certifications, representations
and warranties of Borrower to each Bank.

6. AFFIRMATIVE COVENANTS.

Borrower covenants and agrees that until the termination of the Banks’ obligations under this
Agreement to make Credit Extensions and the payment in full of the Obligations, Borrower shall do
each and all of the matters set forth in this Section 6; and Borrower acknowledges to each Bank
that the breach or default by Borrower of any of the covenants and agreements set forth below in
this Section 6 is and the same shall be material.

6.1 Good Standing and Government Compliance. Borrower shall maintain in good standing
its and each of its Subsidiaries’ organizational existence in their respective jurisdictions of
organization and maintain qualification in each jurisdiction in which the conduct of their
respective businesses or their respective ownership of property requires that they be so qualified.
Borrower shall comply, and shall cause each Subsidiary to comply with all Requirements of Law to
which they are subject, and shall maintain, and shall cause each of its Subsidiaries to maintain,
in force all licenses, approvals and agreements, the loss of which or failure to comply with which
could have a Material Adverse Effect, or an adverse effect in a material manner on the Collateral
or the priority of the Banks’ security interest in the Collateral.

6.2 Payment/Performance. Borrower shall pay when due all amounts owing to the Banks
under this Agreement and the other Loan Documents and promptly perform all other obligations of
Borrower thereunder and hereunder.

6.3 Use of Loan Funds. Borrower shall use all loan proceeds disbursed to Borrower only
for the purposes stated in this Agreement and the other Loan Documents.

6.4 Financial Statements; Reports; Certificates.

(a) Borrower shall deliver to each Bank each and all of the financial statements, reports,
certificates and other records referenced under this subsection (a) and such other statements,
reports, certificates and records as any Bank may reasonably request from time to time.

(i) As soon as available, but in any event within thirty (30) days after the end of each
calendar quarter, Borrower shall deliver to each Bank internally prepared consolidated financial
statements.

(ii) Beginning with the fiscal year ending December 31, 2005, as soon as available, but in any
event within one hundred twenty (120) days after the end of Borrower’s fiscal year, Borrower shall
deliver to each Bank audited CPA prepared consolidated and, upon request of any Bank, internally
prepared consolidating, financial statements of Borrower (including a balance sheet, an income
statement and a statement of retained earnings, each with the related notes and changes in the
financial position for such year and setting forth in comparative form the figures for the prior
year) prepared in accordance with GAAP, consistently applied, together with (with respect to the
CPA prepared statements) an opinion on such financial statements that is unqualified or qualified
in a manner acceptable to the Banks from an independent certified public accounting firm reasonably
acceptable to the Banks. After the occurrence of an Event of Default, any Bank may request and
Borrower shall so provide audited CPA prepared consolidating statements which meet the foregoing
requirements established for consolidated statements.

(iii) Within thirty (30) days after the last day of each fiscal quarter, Borrower shall
deliver to each Bank a statement of Borrower’s Net Finance Receivable prepared and presented in a
manner and format consistent with past practice and consistent with the manner and format employed
in Borrower’s public filings, and will be consistent with the information contained in Borrower’s
public filings for the same periods.

(iv) If applicable, Borrower shall deliver to each Bank copies of all statements, reports and
notices sent or made available generally by Borrower to its security holders or to any holders of
Subordinated Liabilities and all reports on Forms 10-K and 10-Q filed with the Securities and
Exchange Commission.

(v) Within thirty (30) days after the last day of each fiscal quarter, Borrower shall deliver
to each Bank a report of any legal actions pending or threatened against Borrower or any
Subsidiary, which report shall include at a minimum the claimant, the amount of the claim, the
defendants named and the date of such claim. Borrower agrees to cooperate in good faith with
respect to any additional information requested by any Bank with respect to such reports.

(b) Within thirty (30) days after the last day of each month, Borrower shall deliver to each
Bank a Borrowing Base Certificate dated and signed by a Responsible Officer in substantially the
form of Exhibit D hereto that provides the required information that is current within one
day.

(c) Within thirty (30) days after the last day of each month, Borrower shall deliver to each
Bank with the monthly financial statements a Compliance Certificate signed by a Responsible Officer
in substantially the form of Exhibit E hereto.

(d) Borrower shall provide such additional statements and information as any Bank may from
time to time request, in form reasonably acceptable to the Banks. Each Bank shall keep such
information confidential which is marked “Confidential” and which has not been disclosed to third
parties, and shall not disclose such information to any department of such Bank which provides
investment and stock brokerage services.

6.5 Taxes. Borrower shall make, and shall cause each Subsidiary to make, due and
timely payment of, or deposit or withholding of, all federal, state and local taxes, assessments or
contributions required of it by all Requirements of Law, and will execute and deliver to each Bank,
on demand, appropriate certificates attesting to the payment, deposit or withholding thereof;
provided that Borrower or a Subsidiary need not make any payment if the amount or validity of such
payment is contested in good faith by appropriate proceedings and is reserved against (to the
extent required by GAAP) by Borrower.

6.6 Insurance.

(a) Borrower, at its expense, shall keep the Collateral insured against loss or damage by
fire, theft, explosion, sprinklers and all other hazards and risks required by the Banks, acting
reasonably and taking into account the types and risks customarily insured against by businesses
similar to Borrower’s. Unless otherwise directed by the Banks, the insurance shall be all risk
replacement cost insurance with agreed amount endorsement, standard noncontributing mortgagee
clauses and standard waiver of subrogation clauses. Borrower shall also maintain general liability,
workmen’s compensation and other insurance in amounts and of a type that are customary to
businesses similar to Borrower’s, unless the Banks reasonably direct otherwise, in which event
Borrower shall maintain such insurance in amounts and types as the Banks reasonably direct.

(b) All policies of insurance shall be in such form and with such companies as may be
reasonably satisfactory to the Banks. All policies of property insurance shall contain a lender’s
loss payable endorsement, in a form reasonably satisfactory to the Banks, showing the Banks,
collectively, as additional loss payees, and all liability insurance policies shall show the Banks,
collectively, as additional insureds. All policies shall specify that the insurer must give at
least twenty (20) days’ notice to each Bank before canceling its policy for any reason. Upon any
Bank’s request, Borrower shall deliver to each Bank certified copies of the policies of insurance
and evidence of all premium payments. All proceeds payable under any casualty policy or policies
shall, at the payee Bank’s option, be payable to such Bank to be applied on account of the
Obligations, except for casualty policies insuring loss of assets encumbered by Permitted Liens
which are prior to the Lien of such Bank.

6.7 Primary Depository. Each of Borrower and its wholly owned Subsidiaries (excluding
the operating depositing account of PRA Receivables Management, LLC, d/b/a Anchor Receivables
Management) shall maintain their primary operating depository accounts with the Banks during the
term of the Revolving Facility. At least one operating deposit account shall be maintained with
each Bank.

6.8 Financial Covenants. On a consolidated basis, Borrower shall maintain, as of the
last day of each calendar month unless stated otherwise, and Borrower shall fully and timely comply
on a consolidated basis with, each and every one of the financial maintenance covenants set forth
in this Section and others that may be contained in this Agreement and the other Loan Documents.

(a) Funded Debt to EBITDA. A ratio not exceeding 1.0:1.0.

(b) Tangible Net Worth. Maintain on a consolidated basis Tangible Net Worth equal to
at least 100% of Tangible Net Worth reported by Borrower at September 30, 2005, plus 25% of
cumulative positive net income accrued since the end of such fiscal quarter, plus 100% of the net
proceeds from any equity offering, calculated quarterly on the last day of each fiscal quarter.

6.9 Maintenance of Property. Borrower shall keep and maintain the Collateral in good
working order and condition and make all needful and proper repairs, replacements, additions, or
improvements thereto as are necessary, reasonable wear and tear excepted.

6.10 Maintain Security Interest. Borrower shall maintain, protect and preserve the
security interest of the Banks in the Collateral and the lien position of the Banks in the
Collateral, including, without limitation, (i) the filing of “claims” under insurance policies and
(ii) protecting, defending and maintain the validity and enforceability of the Trademarks, Patents
and Copyrights.

6.11 Deposit Accounts. With respect to deposit accounts that are maintained with
financial institution other than the Banks, the Banks, or any of them, may request, and Borrower
and each of its Subsidiaries shall obtain in favor of such Bank(s), a control agreement in form and
substance satisfactory to such Bank(s).

6.12 Further Assurances. At any time and from time to time, Borrower shall execute and
deliver such further instruments, agreements, documents and other records and take such further
action as may be requested by any Bank to effect the purposes of this Agreement, including, without
limitation, the perfection and continuation of perfection of the Banks’ security interests in the
Collateral.

7. NEGATIVE COVENANTS.

Borrower covenants and agrees that until the termination of all Banks’ obligations under this
Agreement to make Credit Extensions, and the payment in full of the Obligations, Borrower shall not
do or permit to be done any of the matters set forth in this Section 7; and Borrower acknowledges
to each Bank that the breach or default by Borrower of any of the covenants and agreements set
forth below in this Section 7 is and the same shall be material.

7.1 Dispositions. Borrower shall not convey, sell, lease, transfer and otherwise
dispose of and Borrower shall not permit any of its Subsidiaries to convey, sell, lease, transfer
and otherwise dispose of (with respect to both Borrower and Borrower’s Subsidiaries, by operation
of law or otherwise) any part of and any interest in their respective businesses and properties,
including the Collateral, other than Permitted Transfers.

7.2 Change in Business; Change in Management or Executive Office. Borrower shall not
engage in any business, or permit any of its Subsidiaries to engage in any business, other than as
reasonably related or incidental to the businesses currently engaged in by Borrower. Borrower shall
not have a Change in Management and will not, without thirty (30) days’ prior written notification
to each Bank, relocate its chief executive office, change its state of organization or change any
other matter that will or could result in any Bank’s security interests in the Collateral becoming
unperfected.

7.3 Mergers or Acquisitions; New Subsidiary. Except for Permitted Acquisitions,
Borrower shall not merge or consolidate, or permit any of its Subsidiaries to merge or consolidate,
with or into any other business organization, or acquire, or permit any of its Subsidiaries to
acquire, all or substantially all of the capital stock or property of another person without the
prior written consent of each Bank, which any Bank may grant or withhold in its sole and absolute
discretion. Borrower shall not create or cause to be created or to come into existence any new
Subsidiary after the Closing Date, without the prior written consent of each Bank.

7.4 Indebtedness. Borrower shall not create, incur, assume or be or remain liable with
respect to any Indebtedness, or permit any Subsidiary so to do, other than Permitted Indebtedness
and normal and customary unsecured indebtedness incurred in the ordinary course of business. With
respect to Indebtedness described in clause (iii) of the definition of Permitted Indebtedness in
Exhibit A, to the extent not specifically prohibited by the terms of such Indebtedness, the
Banks shall have a subordinate lien in and to all equipment and property financed or acquired with
such Indebtedness (with the priority and allocation of such subordinate lien among the Banks to be
determined pursuant to the Intercreditor Agreement).

7.5 Encumbrances. Borrower shall not create, incur, assume or allow any Lien with
respect to the Collateral or any of its property, or assign or otherwise convey any right to
receive income, including the sale of any Accounts, or permit any of its Subsidiaries so to do,
except for Permitted Liens, or covenant to any other person that Borrower in the future will
refrain from creating, incurring, assuming or allowing any Lien with respect to any of Borrower’s
property.

7.6 Judgments. Borrower shall not permit a judgment or judgments for the payment of
money in excess of $500,000 in the aggregate to be entered against it or any Subsidiary which
judgment Borrower permits to remain unsatisfied or unstayed for a period of thirty (30) days after
the same is entered against Borrower or a Subsidiary.

7.7 Distributions. Except for Permitted Dividends and Permitted Investments, Borrower
shall not pay any dividends or make any other distribution or payment on account of or in
redemption, retirement or purchase of any capital stock, or permit any of its Subsidiaries to do
so.

7.8 Investments. Borrower shall not directly or indirectly acquire or own, or make any
Investment in or to any person, or permit any of its Subsidiaries so to do, other than Permitted
Investments.

7.9 Loans. Except for Permitted Investments and Permitted Acquisitions, Borrower shall
not make or commit to make, or permit any of its Subsidiaries to make or commit to make, any
advance, loan, extension of credit or capital contribution to, or purchase of any stock, bonds,
notes, debentures or other securities of any person.

7.10 Loans to Officers. Borrower shall not make, or permit any of its Subsidiaries to
make, any loan or advance directly or indirectly for the benefit of any past, present, or future
stockholder, director, officer, executive, manager, member, partner or employee of Borrower or a
Subsidiary, as the case may be, other than advances or loans made in the ordinary course of
business consistent with past practice, including but not limited to employee relocation loans,
employee bridge loans and other incidental loans to employees, all in the ordinary course of
business.

7.11 Compensation. Borrower shall not pay, or permit any Subsidiary to pay, any
compensation to any past, present or future shareholder, director, officer, executive, member,
manager, partner and employee, whether through salary, bonus or otherwise, if contrary to
Borrower’s compensation policies or the executive compensation rules established by the United
States Securities and Exchange Commission or the NASDAQ Stock Exchange.

7.12 Transactions with Affiliates. Borrower shall not directly or indirectly enter
into or permit to exist, or permit any Subsidiary to directly or indirectly enter into or permit to
exist, any material transaction with any Affiliate of Borrower or any Subsidiary except for
transactions that are in the ordinary course of Borrower’s or such Subsidiary’s business, upon fair
and reasonable terms that are no less favorable to Borrower or Subsidiary than would be obtained in
an arm’s length transaction with a non-affiliated Person.

7.13 Subordinated Liabilities. Borrower shall not make any payment in respect of any
Subordinated Liabilities, or permit any of its Subsidiaries to make any such payment except in
compliance with the terms of such Subordinated Liabilities, or amend any provision contained in any
documentation relating to the Subordinated Liabilities without each Bank’s prior written consent.

7.14 Inventory and Equipment. Borrower shall not store, or permit any Subsidiary to
store, its Equipment with a bailee, warehouseman or similar person unless the Banks have received a
pledge of the warehouse receipt covering such Equipment. Except for such other locations as each
Bank may approve in writing, Borrower shall not move or relocate its Equipment from the location or
locations identified in the Certificate of Borrower and such other locations of which Borrower
gives each Bank prior written notice and as to which Borrower authorizes the filing of a Financing
Statement where needed to perfect each Bank’s security interest.

7.15 Licenses. Borrower shall not become bound by, or permit its Subsidiaries to
become bound by, any license, agreement or other record which would have a Material Adverse Effect.

7.16 Compliance. Borrower shall not become or be controlled by an “investment
company”, within the meaning of the Investment Company Act of 1940, or become principally engaged
in, or undertake as one of its important activities, the business of extending credit for the
purpose of purchasing or carrying margin stock, or use the proceeds of any Credit Extension for
such purpose, or permit any of its Subsidiaries to do any of the foregoing.

7.17 Negative Pledge Agreements. Borrower shall not permit the inclusion in any
contract to which it becomes a party of any provisions that could restrict or invalidate the
creation of a security interest in Borrower’s rights and interests in any Collateral.

7.18 Third Party Agreements. Borrower shall not enter into any agreement containing
any provision that would be violated or breached by the performance of the obligations of Borrower
under this Agreement.

8. EVENTS OF DEFAULT.

The occurrence of any one or more of the events, conditions, circumstances and matters set
forth below in this Section 8 shall constitute an Event of Default by Borrower under this Agreement
and the other Loan Documents. Notwithstanding the foregoing and anything else in this Agreement to
the contrary, if any of the Obligations are payable on demand of the Banks, or any of them, then,
in such event, there are no conditions precedent to any such Bank’s right to demand payment of such
Obligations, in whole or in part, at any time and from time to time, without prior notice, until
the entire unpaid balance outstanding under such Obligations, including principal, interest, fees,
premiums, charges and costs and expenses are paid in full. And, there are no conditions precedent
to any Bank exercising any of and all of its other rights and remedies at such time or times as it
deems necessary or appropriate to recover full payment of the Obligations, including, without
limitation, the exercise of any of and all of its rights and remedies set forth in Section 9 below,
the exercise of any of and all of its other rights and remedies granted to it under the Loan
Documents and the exercise of any of and all of its rights and remedies at law and in equity. The
rights and obligations of the Banks relative to each other with respect to the priority of liens
and the exercise of rights against, and the allocation of, the Collateral, are set forth in the
Intercreditor Agreement.

8.1 Default under Obligations. The occurrence of any event of default or default
condition under any of the Obligations, including, without limitation, Borrower’s failure to pay,
when due, the principal of and interest on any of the Obligations, or Borrower’s failure to pay,
when due, any and all other amounts due under any of the Obligations, including, without
limitation, any taxes, fees, charges, premiums and costs and expenses.

8.2 Covenant Default. Borrower fails to perform or satisfy any obligation under
Section 6 or violates any of the covenants contained in Section 7 of this Agreement, or fails or
neglects to perform or observe or otherwise defaults under any other term, provision, condition,
covenant or agreement contained in this Agreement, in any of the other Loan Documents, or in any
other present or future instrument, document, agreement or other record between Borrower and any
Bank or from Borrower to any Bank or for the benefit of any Bank, whether monetary or non-monetary,
and as to any default under such other term, provision, condition, covenant or agreement that can
be cured, has failed to cure such default within ten (10) days after Borrower receives notice
thereof or any officer of Borrower becomes aware thereof; provided, however, that if the default is
non-monetary and cannot by its nature be cured within the ten (10) day period or cannot after
diligent attempts by Borrower be cured within such ten (10) day period, and such default is likely
to be cured within a reasonable time, then Borrower shall have an additional reasonable period
(which shall not in any case exceed thirty (30) days) to attempt to cure such non-monetary default,
and within such reasonable time period the failure to have cured such default shall not be deemed
an Event of Default (provided that the Banks shall not be required to make any Credit Extensions
during such cure period).

8.3 Guarantor Default. The failure of any other person obligated for the payment of
any of the Obligations, either directly or indirectly, or obligated under this Agreement or any of
the other Loan Documents to perform any of the terms and conditions imposed upon such other person
by any of said agreements, as and when the same are required to be so performed, or the occurrence
of some other default by such other person under any of said agreements.

8.4 Termination of Supporting Obligation. The termination of or the occurrence of an
event of default or a default condition, after the expiration of any applicable cure periods, under
any guaranty agreement or other supporting obligation (inclusive of letters of credit, third person
pledge agreements and third person security agreements) which applies to this Agreement or any of
the other Loan Documents.

8.5 Attachment. Borrower’s assets, or any part or portion thereof, are attached,
seized, subjected to a writ or distress warrant, or are levied upon, or come into the possession of
any trustee, receiver or person acting in a similar capacity and such attachment, seizure, writ or
distress warrant or levy has not been removed, discharged or rescinded within ten (10) days, or if
Borrower is enjoined, restrained or in any way prevented by court order from continuing to conduct
all or any material part of its business affairs, or if a judgment or other claim becomes a lien or
encumbrance upon any material portion of Borrower’s assets, or if a notice of lien, levy or
assessment is filed of record with respect to any of Borrower’s assets by the United States
Government, or any department, agency or instrumentality thereof, or by any state, county,
municipal or governmental agency, and the same is not paid within ten (10) days after Borrower
receives notice thereof, provided that none of the foregoing shall constitute an Event of Default
where such action or event is stayed or an adequate bond has been posted pending a good faith
contest by Borrower (provided that no Credit Extensions will be required to be made during such
cure period).

8.6 Insolvency. Borrower becomes insolvent, or an Insolvency Proceeding is commenced
by Borrower, or an Insolvency Proceeding is commenced against Borrower and is not dismissed or
stayed within thirty (30) days (provided that no Credit Extensions will be required to be made
prior to the dismissal of such Insolvency Proceeding).

8.7 Other Agreements. The occurrence of a default in any agreement or agreements to
which Borrower is a party with a third person or persons which results in a right by such third
person or persons, whether or not exercised, to accelerate the maturity of any Indebtedness in an
amount in the aggregate in excess of 2% of Borrower’s Tangible Net Worth or that could have a
Material Adverse Effect.

8.8 Subordinated Liabilities. Borrower makes any payment on account of Subordinated
Liabilities, except to the extent the payment is allowed under any subordination agreement entered
into with the Banks.

8.9 Misrepresentations. Any misrepresentation or misstatement exists now or hereafter
in any warranty or representation set forth herein, in any other Loan Document or in any
certificate delivered to any Bank by any Responsible Officer pursuant to this Agreement or any
other Loan Document, or to induce any Bank to enter into this Agreement or any other Loan Document.

8.10 Subsidiary Default. Default by any of Borrower’s Subsidiaries under any
Indebtedness or other obligation now owing or which hereafter arises and is owing to any Bank.

9. BANK’S RIGHTS AND REMEDIES UPON DEFAULT.

9.1 Rights and Remedies upon an Event of Default. If an Event of Default shall occur
under this Agreement, in addition to any other rights and remedies which may be available to the
Banks and without limiting any other rights and remedies granted to the Banks in this Agreement,
the other Loan Documents and at law and in equity, including, without limitation, the rights and
remedies provided to the Banks under the Code, which rights and remedies are fully exercisable by
each Bank as and when provided herein and therein, the Banks shall have the rights and remedies set
forth below in this Section 9.1, any and all of which any Bank may exercise at its election,
without notice to Borrower of its election and without demand, but subject to the rights of each
other Bank under the Intercreditor Agreement, and with immediate written notice to each other Bank
of the exercise of any such right or remedy.

(a) Acceleration of Obligations. Any Bank may, at its option, accelerate and declare
immediately due and payable the Obligations, as well as any of and all of the other indebtedness
and obligations owing under this Agreement and the other Loan Documents that are not already due
hereunder and that are not already due thereunder. If there is more than one Obligation, any Bank
may accelerate and declare immediately due and payable all of the Obligations owing to it, or any
Bank may from time to time and at any number of times after the occurrence of an Event of Default,
accelerate and declare immediately due and payable any one or more of the Obligations owing to it,
as such Bank in its discretion elects to accelerate (provided that upon the occurrence of an Event
of Default described in Section 8 under the heading “Insolvency”, all Obligations shall become
immediately due and payable without any action by any Bank).

(b) Terminate Credit Extensions. Each Bank may limit Borrower’s right to receive any
and all Advances under this Agreement and under any other agreement between such Bank and Borrower
to such amounts as such Bank determines from time to time to be appropriate under the
circumstances; each Bank may impose a moratorium on future Advances under this Agreement and under
any other agreement between such Bank and Borrower; and each Bank may terminate the right of
Borrower to receive Advances under this Agreement and under any other agreement between Borrower
and such Bank; and in all the foregoing instances, a Bank’s rights relative to Credit Extensions
may be exercised cumulatively, concurrently, alternatively and in any other manner and at any time
or times as such Bank deems appropriate, in its discretion.

(c) Protection of Collateral. Each Bank may make such payments and do or cause to be
done such acts as such Bank considers necessary or advisable to protect the Collateral and to
preserve, protect, perfect and continue the perfection of its security interest in the Collateral.
Borrower agrees to assemble the Collateral if any Bank so requires and to make the Collateral
available to a Bank as such Bank (subject to the Intercreditor Agreement) may designate. Borrower
authorizes each Bank and its representatives to enter the premises where the Collateral is located,
to do, among other things a Bank deems necessary or advisable, the following: (i) take and maintain
possession of the Collateral, or any part or parts of it, (ii) pay, purchase, contest or compromise
any encumbrance, charge or lien which in a Bank’s determination appears to be prior or superior to
its security interest, and (iii) pay all costs and expenses incurred in connection with any of the
foregoing. With respect to any of Borrower’s premises, Borrower hereby grants each Bank a license
to enter into possession of such premises and to occupy the same, without charge, in order to
exercise any of the Banks’ rights and remedies provided herein, at law, in equity and otherwise.

(d) Sale and Disposition of Collateral Upon Default.

(i) Each Bank, directly and through others on its behalf, may ship, reclaim, recover, store,
finish, maintain, repair, prepare for sale, advertise for sale and/or sell the Collateral, or part
or parts thereof, for cash or on terms, at one or more private or public sales held at such place
or places as such Bank determines to be commercially reasonable, after having complied with the
provisions of this Agreement, the Intercreditor Agreement, the other Loan Documents and applicable
Requirements of Law relating to sale of the Collateral, including, without limitation, the
requirements of the Code. Each Bank is hereby irrevocably granted a license or other right,
pursuant to the provisions of this Section 9.1, to use, without charge, Borrower’s labels, patents,
copyrights, rights of use of any name, trade secrets, trade names, trademarks, service marks,
advertising matter and any property of a similar nature, together with the right of access to all
tangible or electronic media in which any of the foregoing may be recorded or stored, in completing
production of, management of, advertising for sale and selling any Collateral and, in connection
with a Bank’s exercise of its rights under this Section 9.1, Borrower’s rights under all licenses
and all franchise agreements shall inure to the Banks’ benefit. Borrower hereby agrees: (i) that
fifteen (15) days notice of any intended sale or disposition of any Collateral is commercially
reasonable; (ii) that a shorter period of notice of not less than ten (10) days will be
commercially reasonable if each Bank, in its opinion, deems it necessary to move more expeditiously
with disposition of the Collateral or any part thereof; and (iii) that the foregoing shall not
require a notice if no notice is required under the Code (except immediate notice to each other
Bank).

(ii) Each Bank, or any or all of them, may credit bid and purchase at any sale or sales.

(iii) The proceeds of any sale of, or other realization upon, all or any part of the
Collateral pursuant to this Section 9.1 shall be applied by the Banks in the following order of
priorities (subject to the terms of the Intercreditor Agreement), or such other order as the Banks,
together, may determine or as may be required under applicable Requirements of Law: first,
to payment of the costs and expenses of such sale or other realization, and all expenses,
liabilities and advances incurred or made by the Banks in connection therewith, and any other
unreimbursed costs and expenses for which the Banks are to be reimbursed pursuant to this Agreement
and the other Loan Documents; second, to the payment of accrued but unpaid interest on the
Obligations; third to the payment of unpaid principal of the Obligations; fourth,
to the payment of all other amounts owing or outstanding by Borrower under the Obligations, this
Agreement, the other Loan Documents and otherwise to any Bank as provided herein or therein, until
all the foregoing shall have been paid in full; finally, to payment to Borrower or its
successors or assigns, or as a court of competent jurisdiction may direct, of any surplus then
remaining from such proceeds.

(iv) Any deficiency that exists after disposition of the Collateral as provided above will be
paid immediately by Borrower, without demand by any Bank, but this provision shall not require any
Bank to first dispose of the Collateral before attempting to recover payment of the Obligations
from Borrower or any other person and each Bank shall have the right to proceed successively,
concurrently and alternatively against the Collateral, the Borrower and any other person obligated
on any of the Obligations in any order and at any time or times as it deems to be in its best
interest.

(e) Discontinuance of Proceedings; Position of Parties Restored. If any Bank shall
have proceeded to enforce any right or remedy under the Loan Documents by foreclosure, entry, or
otherwise and such proceedings shall have been discontinued or abandoned for any reason, or such
proceedings shall have resulted in a final determination adverse to any Bank, then and in every
such case Borrower and each Bank shall be restored to their former positions and rights hereunder,
and all rights, powers and remedies of the Banks shall continue as if no such proceedings had
occurred or had been taken.

9.2 Remedies Cumulative. Each Bank’s rights and remedies under this Agreement, the
Loan Documents and all other agreements shall be cumulative and may be exercised successively,
concurrently, alternatively and in any other order and at such time or times as any Bank elects in
its discretion. Each Bank shall have all other rights and remedies not inconsistent herewith as
provided under the Code, by law and in equity. No exercise by any Bank of one right or remedy shall
be deemed an election, and no waiver by any Bank, or all of them, of any Event of Default on
Borrower’s part shall be deemed a continuing waiver. No delay by any Bank, or all of them, shall
constitute a waiver, election or acquiescence by it. No waiver by any Bank shall be effective
unless made in a written document signed on behalf of such Bank and then shall be effective only in
the specific instance and for the specific purpose for which it was given. For the avoidance of
doubt, a waiver of one Bank shall not in any event constitute a waiver by any other Bank absent its
execution thereof.

10. NOTICES.

Unless otherwise provided in this Agreement, all notices or demands by any party relating to
this Agreement or any other agreement entered into in connection herewith shall be in writing and
(except for financial statements and other informational documents which may be sent by first-class
mail, postage prepaid) shall be personally delivered or sent by a recognized overnight delivery
service, certified mail, postage prepaid, return receipt requested, or by facsimile to Borrower or
to a Bank, as the case may be, at their respective addresses as set forth on the signature page of
this Agreement. Any such notice or demand sent by or to Borrower shall be sent simultaneously to
all Banks. The parties may change the address at which they are to receive notices hereunder by
notice in writing in the foregoing manner given to the other.

11. WAIVERS.

11.1 Waiver Of Trial By Jury. To the extent not prohibited by applicable Requirements
of Law, Borrower and each Bank hereby waive their respective rights to a jury trial of any claim or
cause of action based upon or arising out of any of the Loan Documents or any of the transactions
contemplated therein, including contract claims, tort claims, breach of duty claims and all other
common law or statutory claims. Each party recognizes and agrees that the foregoing waiver
constitutes a material inducement for it to enter into this Agreement. Each party represents and
warrants that it has reviewed this waiver with its legal counsel and that it knowingly and
voluntarily waives its jury trial rights following consultation with legal counsel.

11.2 Marshalling of Assets. Borrower hereby waives, to the extent permitted by law,
the benefit of all appraisal, valuation, stay, extension, reinstatement and redemption laws now in
force and those hereafter in force and all rights of marshalling in the event of any sale hereunder
of the Collateral or any part or any interest therein.

11.3 Waiver of Action Against Third Persons. Borrower waives any right to require any
Bank to bring any action against any other person or to require that resort be had to any security
or to any balances of any deposit or other accounts or debts or credits on the books of any such
Bank in favor of any other person.

12. GENERAL PROVISIONS.

12.1 Indemnification. Borrower hereby agrees to defend, protect, indemnify and hold
harmless each Bank, all directors, officers, employees, attorneys, agents and independent
contractors of each Bank, from and against all claims, actions, liabilities, damages and costs and
expenses asserted against, imposed upon or incurred by such Bank or any of such other persons as a
result of, or arising from, or relating to this Agreement, the other Loan Documents or the
transactions contemplated hereby or thereby, except for losses resulting from the gross negligence
or willful misconduct of or breach of this Agreement by, the person otherwise to be indemnified
hereunder.

12.2 Choice of Law. This Agreement shall be deemed to have been executed and delivered
in the Commonwealth of Virginia regardless of where the signatories may be located at the time of
execution and shall be governed by and construed in accordance with the substantive laws of the
Commonwealth of Virginia, excluding, however, the conflict of law provisions thereof.

12.3 Additional Lenders. Additional lenders may be added to this Revolving Facility
upon the written consent of all parties hereto, the execution by such additional lenders of an
additional signature page to this Agreement evidencing such lender’s agreement to be bound by the
terms hereof, and the similar execution by such lenders of the Intercreditor Agreement and such
other instruments and agreements as may be required by the Banks then party hereto. The joinder of
any such lender to this Revolving Facility shall not in any way affect the rights or obligations of
the Banks then party hereto, except that the Commitments hereunder shall be adjusted from the date
of such joinder in such manner as all parties may agree. Any such additional lender shall be deemed
a “Bank” for purposes of this Agreement.

12.4 Incorporation of Exhibits; Customer and Loan Numbers. All exhibits, schedules,
addenda and other attachments to this Agreement are by this reference incorporated herein and made
a part hereof as if fully set forth in the body of this Agreement. The Customer and Loan Numbers,
if any, stated in this Agreement are for the respective Bank’s internal business use and reference
only and do not and shall not limit the scope and extent of any Bank’s rights hereunder, including
the Obligations secured hereby and the security interests of the Banks in the Collateral.

12.5 Maintenance of Records by Banks. Borrower acknowledges and agrees that each Bank
is authorized to maintain, store and otherwise retain the Loan Documents or any of them in their
original, inscribed tangible form or a record thereof in an electronic medium or other non-tangible
medium which permits such record to be retrieved in a perceivable form; that a record of any of the
Loan Documents in a non-tangible medium which is retrievable in a perceivable form shall be the
agreement of Borrower to the same extent as if such Loan Document was in its original, inscribed
tangible medium and such a record shall be binding on and enforceable against Borrower
notwithstanding the same is in a non-tangible form and notwithstanding the signatures of the
signatories hereof are electronic, typed, printed, computer generated, facsimiles or other
reproductions, representations or forms; and that a Bank’s certification that a non-tangible record
of any of the Loan Documents is an accurate and complete copy or reproduction of the original,
inscribed tangible form shall be conclusive, absent clear and convincing evidence of the
incorrectness of said certification, and such non-tangible record or a reproduction thereof shall
be deemed an original and have the same force and effect as the original, inscribed tangible form.

12.6 Credit Investigations; Sharing of Information; Control Agreements. Each Bank is
irrevocably authorized by Borrower, during the term of this Agreement and until the last to occur
of (i) payment in full of all the Obligations and (ii) termination of the Banks’ obligations to
make Credit Extensions under this Agreement, to make or have made such credit investigations as it
deems appropriate to evaluate Borrower’s and its Subsidiaries’ credit or financial standing, and
Borrower authorizes each Bank to share with its affiliates its experiences with Borrower and its
Subsidiaries and other information in Bank’s possession relative to Borrower and its Subsidiaries.
The Banks (i) shall not have any obligation or responsibility to provide information to third
persons relative to any Bank’s security interest in the Collateral, this Agreement or otherwise
with respect to Borrower and its Subsidiaries and (ii) shall not have any obligation or
responsibility to subordinate its security interest in the Collateral to the interests of any third
persons or to enter into control agreements relative to the Collateral.

12.7 Banks’ Liability for Collateral. Notwithstanding anything in this Agreement or
any of the other Loan Documents to the contrary, a Bank may at any time or times during the term of
this Agreement make such payments and do or cause to be done such acts as a Bank considers
necessary or advisable to protect the Collateral and to preserve, protect and perfect or continue
the perfection of its security interest in the Collateral. So long as a Bank complies with
reasonable banking practices, except as may be provided herein to the contrary, such Bank shall not
in any way or manner be liable or responsible for: (i) the safekeeping of the Collateral; (ii) any
loss or damage thereto occurring or arising in any manner or fashion from any cause; (iii) any
diminution in the value thereof; or (iv) any act or default of any carrier, warehouseman, bailee,
forwarding agency or other person whomsoever.

12.8 Bank Expenses. If Borrower fails to pay any amounts or furnish any required proof
of payment due to third persons, as required under the terms of this Agreement and the other Loan
Documents, then after ten (10) days prior written notice to Borrower, and Borrower’s failure to pay
such amounts, the Banks, or any of them, may do or cause to be done any or all of the following:
(i) make payment of the same or any part thereof; (ii) set up such reserves as such Bank(s) deems
necessary to protect it from the exposure created by such failure; and (iii) obtain and maintain
insurance policies of the type required by this Agreement, and take any action with respect to such
policies as any Bank deems prudent. Any amounts so paid or deposited by such Bank shall constitute
Bank Expenses, shall be immediately due and payable, shall bear interest at the Default Rate from
the date of payment or deposit and shall be secured by the Collateral. Any payments made by a Bank
shall not constitute an agreement by a Bank to make similar payments in the future or a waiver by
any Bank of any Event of Default under this Agreement. If a Bank is requested to waive an Event of
Default or forbear taking action relative thereto, such Bank may condition any waiver or
forbearance it elects, in its discretion, to grant Borrower on payment by Borrower of such fees to
Bank as such Bank deems appropriate under the circumstances and may condition any such waiver or
forbearance on Borrower reimbursing such Bank for all costs and expenses such Bank incurs in
connection with such waiver or forbearance.

12.9 No Waiver; No Course of Dealing. Any Bank, at any time or times, may grant
extensions of time for payment or other indulgences or accommodations to any person obligated on
any of the Obligations, or permit the renewal, amendment or modification thereof or substitution or
replacement therefor, or permit the substitution, exchange or release of any property securing any
of the Obligations and may add or release any person primarily or secondarily liable on any of the
Obligations, all without releasing Borrower from any of its liabilities and obligations under any
of the Loan Documents and without such Bank waiving any of its rights and remedies under any of the
Loan Documents, or otherwise, and further without effecting any release or waiver of any
liabilities, obligations, rights or remedies accruing to any other Bank. No delay or forbearance by
any Bank in exercising any or all of its rights and remedies hereunder and under the other Loan
Documents or rights and remedies otherwise afforded by law or in equity shall operate as a waiver
thereof or preclude the exercise thereof during the continuance of any Event of Default as set
forth herein or in the event of any subsequent Event of Default hereunder. Also, no act or inaction
of any Bank under any of the Loan Documents shall be deemed to constitute or establish a “course of
performance or dealing” that would require such Bank, or any of them, to so act or refrain from
acting in any particular manner at a later time under similar or dissimilar circumstances.

12.10 Relationship of Parties; Successors and Assigns. The relationship of the Banks
to Borrower is that of a creditor to an obligor (inclusive of a person obligated on a supporting
obligation) and a creditor to a debtor; and in furtherance thereof and in explanation thereof, no
Bank has any fiduciary, trust, guardian, representative, partnership, joint venturer or other
similar relationship to or with Borrower and no such relationship shall be drawn or implied from
any of the Loan Documents or any actions or inactions of any Bank hereunder or with respect hereto
- and, no Bank has any obligation to Borrower or any other person relative to administration of any
of the Obligations and the Collateral, or any part or parts thereof, except as otherwise set forth
herein. The covenants, terms and conditions herein contained shall bind, and the benefits and
powers shall inure to, the respective heirs, executors, administrators, successors and assigns of
the parties hereto, as well as any persons who become bound hereto as a debtor. If two or more
persons or entities have joined as Borrower, each of the persons and entities shall be jointly and
severally obligated to perform the conditions and covenants herein contained. The term “Bank” shall
include any payee of the Obligations hereby secured and any transferee or assignee thereof, whether
by operation of law or otherwise, and any Bank may transfer, assign or negotiate all or any of the
Obligations secured by this Agreement from time to time without the consent of Borrower and without
notice to Borrower (but subject to the consent of each other Bank and the execution and delivery by
any such transferee or assignee of such documents, guaranties and agreements, including, without
limitation, this Agreement and the Intercreditor Agreement, as such other Banks may reasonably
require) and any transferee or assignee of any Bank or any transferee or assignee of another may do
the same without Borrower’s consent and without notice to Borrower. Borrower waives and will not
assert against any transferee or assignee of any Bank any claims, defenses, set-offs or rights of
recoupment which Borrower could assert against a Bank, except defenses which Borrower cannot waive.

12.11 Time of Essence. Time is of the essence for the performance of all of Borrower’s
covenants and agreements (inclusive of the Obligations) set forth in this Agreement and each of the
Loan Documents.

12.12 Amendments in Writing; Integration. All amendments to or terminations of this
Agreement must be in writing and must be executed by each party hereto. All prior agreements,
understandings, representations, warranties and negotiations between the parties hereto with
respect to the subject matter of this Agreement, if any, are merged into this Agreement and the
Loan Documents.

12.13 Counterparts. This Agreement may be executed in any number of counterparts and
by different parties on separate counterparts, each of which, when executed and delivered, shall be
deemed to be an original, and all of which, when taken together, shall constitute but one and the
same Agreement.

12.14 Survival. All covenants, representations and warranties made in this Agreement
shall continue in full force and effect so long as any Obligations remain outstanding.
Notwithstanding anything in this Agreement or the other Loan Documents to the contrary, the
obligations of Borrower to indemnify the Banks as described in Section 12.1 shall survive until all
applicable statute of limitations periods with respect to actions that may be brought against each
such Bank have run.

12.15 Limited License,. During the term of this Agreement, Borrower hereby grants to
each Bank and its Affiliates, a non-exclusive, world-wide, non-transferable, royalty-free
irrevocable license to use the Borrower’s Marks (as herein defined) solely for and in connection
with the general marketing, promotion and advertising activities of such Bank and its Affiliates.
General marketing, promotion and advertising activities shall include press releases, product
brochures, tombstone ads and other advertising typical in industry practice and disclosure of
Borrower’s Marks on such Bank’s website, including a link to the Borrower’s website. “Marks” shall
mean Borrower’s names, logos, Trademarks, trade names, service marks and world wide web addresses.
Bank shall use commercially reasonable efforts to cause the appropriate designation “~” or the
registration symbol “®” to be placed adjacent to the Marks in connection with the use thereof.
Notwithstanding the foregoing, no Bank shall be under any obligation to use any of such Marks. Any
marketing, promotion, advertising or other materials which incorporate Borrower’s Marks shall be
submitted to Borrower for approval prior to publication.

[THE NEXT PAGE IS THE SIGNATURE PAGE]

1

In witness whereof, the parties have caused this agreement to be executed with authority
duly obtained, as of the date first written above.

	 	 	 
	PORTFOLIO RECOVERY ASSOCIATES, INC.

	 	Witness:
	 
	 	 
	By: /s/ Steven D. Fredrickson

	 	Judith Scott
	 

	 	 
	Steven D. Fredrickson

	 	/s/ Judith Scott
	 

	 	 
	 
	 	 
	Title: President and CEO

	 	

	 

	 	

Portfolio Recovery Associates, Inc.

120 Corporate Boulevard, Suite 100

Norfolk, VA 23502

Attn: General Counsel

FAX: 757-554-0586

	 	 	 
	WACHOVIA BANK, NATIONAL ASSOCIATION	 	BANK OF AMERICA, N.A.
	By: /s/ David Brawley

	 	By: /s/ Paula Smith
	 
	 	 
	Name: David Brawley

	 	Name: Paula Smith
	 

	 	 

	 	 	 
	Address for Notices:	 	 	Address for Notices:	 
	Wachovia Bank, National Association	 	 	Bank of America, N.A.	 
	1021 E. Cary Street	 	 	One Commercial Place	 
	Mail Code VA 9621	 	 	Commercial Banking, Third Floor	 
	Richmond, VA 23219	 	 	Norfolk, VA 23510	 
	Attn:	 	David Brawley, Vice President	 	 	Attn:	 	 	Paula H. Smith
	FAX: (804) 697-7661	 	 	FAX:	 	 	(757) 441-8599
	RBC CENTURA BANK
	By: /s/ Vernon Towler
	Name:	 	Vernon Towler
	Title: Senior Vice President

Address for Notices:

RBC Centura Bank

555 E. Main Street, Suite 1000

Norfolk, VA 23510

Attn: Virginia President

FAX: (757) 892-2045

2EX-10.1

EXHIBIT 10.1

NEW CENTURY FINANCIAL CORPORATION

2004 PERFORMANCE INCENTIVE PLAN

(Composite Plan Document Reflecting Amendment Approved by Stockholders May 10, 2006)

1. PURPOSE OF PLAN

The purpose of this New Century Financial Corporation 2004 Performance Incentive Plan (this
“Plan”) of New Century Financial Corporation, a Maryland corporation (the “Corporation”) is
to promote the success of the Corporation and to increase stockholder value by providing an
additional means through the grant of awards to attract, motivate, retain and reward
selected employees and other eligible persons.

2. ELIGIBILITY

The Administrator (as such term is defined in Section 3.1) may grant awards under this Plan
only to those persons that the Administrator determines to be Eligible Persons. An
“Eligible Person” is any person who is either: (a) an officer (whether or not a director) or
employee of the Corporation or one of its Subsidiaries or Affiliates; (b) a member of the
Board; or (c) an individual consultant or advisor who renders or has rendered bona fide
services (other than services in connection with the offering or sale of securities of the
Corporation or one of its Subsidiaries or Affiliates in a capital-raising transaction or as
a market maker or promoter of securities of the Corporation or one of its Subsidiaries or
Affiliates) to the Corporation or one of its Subsidiaries or Affiliates and who is selected
to participate in this Plan by the Administrator; provided, however, that a person who is
otherwise an Eligible Person under clause (c) above may participate in this Plan only if
such participation would not adversely affect the Corporation’s compliance with applicable
laws. An Eligible Person who has been granted an award (a “participant”) may, if otherwise
eligible, be granted additional awards if the Administrator shall so determine. As used
herein, “Subsidiary” means any corporation or other entity a majority of whose outstanding
voting stock or voting power is beneficially owned directly or indirectly by the
Corporation; “Affiliate” means any corporation or other entity a significant portion of the
equity of which is beneficially owned directly or indirectly by the Corporation (regardless
of whether such entity qualifies as a Subsidiary), as determined by the Administrator; and
“Board” means the Board of Directors of the Corporation.

3. PLAN ADMINISTRATION

	 	3.1	 	The Administrator. This Plan shall be administered by and all awards under
this Plan shall be authorized by the Administrator. The “Administrator” means the
Board or one or more committees appointed by the Board or another committee (within its
delegated authority) to administer all or certain aspects of this Plan. Any such
committee shall be comprised solely of one or more directors or such number of
directors as may be required under applicable law. A committee may delegate some or
all of its authority to another committee so constituted. The Board or a committee
comprised solely of directors may also delegate, to the extent permitted by applicable
law, to one or more officers of the Corporation, its powers under this Plan (a) to
designate the officers and employees of the Corporation and its Subsidiaries and
Affiliates who will receive grants of awards under this Plan, and (b) to determine the
number of shares subject to, and the other terms and conditions of, such awards. The
Board may delegate different levels of authority to different committees with
administrative and grant authority under this Plan. Unless otherwise provided in the
Bylaws of the Corporation or the applicable charter of any Administrator: (a) a
majority of the members of the acting Administrator shall constitute a quorum, and (b)
the vote of a majority of the members present assuming the presence of a quorum or the
unanimous written consent of the members of the Administrator shall constitute action
by the acting Administrator.

With respect to awards intended to satisfy the requirements for performance-based
compensation under Section 162(m) of the Internal Revenue Code of 1986, as amended
(the “Code”), this Plan shall be administered by a committee consisting solely of
two or more outside directors (as this requirement is applied under Section 162(m)
of the Code); provided, however, that the failure to satisfy such requirement shall
not affect the validity of the action of any committee otherwise duly authorized and
acting in the matter. Award grants, and transactions in or involving awards,
intended to be exempt under Rule 16b-3 under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), must be duly and timely authorized by the Board or a
committee consisting solely of two or more non-employee directors (as this
requirement is applied under Rule 16b-3 promulgated under the Exchange Act). To the
extent required by any applicable listing agency, this Plan shall be administered by
a committee composed entirely of independent directors (within the meaning of the
applicable listing agency).

	 	3.2	 	Powers of the Administrator. Subject to the express provisions of this Plan,
the Administrator is authorized and empowered to do all things necessary or desirable
in connection with the authorization of awards and the administration of this Plan (in
the case of a committee or delegation to one or more officers, within the authority
delegated to that committee or person(s)), including, without limitation, the authority
to:

	 	(a)	 	determine eligibility and, from among those persons determined
to be eligible, the particular Eligible Persons who will receive an award under
this Plan;

	 	(b)	 	grant awards to Eligible Persons, determine the price at which
securities will be offered or awarded and the number of securities to be
offered or awarded to any of such persons, determine the other specific terms
and conditions of such awards consistent with the express limits of this Plan,
establish the installments (if any) in which such awards shall become
exercisable or shall vest (which may include, without limitation, performance
and/or time-based schedules), or determine that no delayed exercisability or
vesting is required, establish any applicable performance targets, and
establish the events of termination or reversion of such awards;

	 	(c)	 	approve the forms of award agreements (which need not be
identical either as to type of award or among participants);

	 	(d)	 	construe and interpret this Plan and any agreements defining
the rights and obligations of the Corporation, its Subsidiaries and Affiliates,
and participants under this Plan, further define the terms used in this Plan,
and prescribe, amend and rescind rules and regulations relating to the
administration of this Plan or the awards granted under this Plan;

	 	(e)	 	cancel, modify, or waive the Corporation’s rights with respect
to, or modify, discontinue, suspend, or terminate any or all outstanding
awards, subject to any required consent under Section 8.6.5;

	 	(f)	 	accelerate or extend the vesting or exercisability or extend
the term of any or all such outstanding awards (in the case of options or stock
appreciation rights, within the maximum ten-year term of such awards) in such
circumstances as the Administrator may deem appropriate (including, without
limitation, in connection with a termination of employment or services or other
events of a personal nature) subject to any required consent under Section
8.6.5;

	 	(g)	 	adjust the number of shares of Common Stock subject to any
award, adjust the price of any or all outstanding awards or otherwise change
previously imposed terms and conditions, in such circumstances as the
Administrator may deem appropriate, in each case subject to Sections 4 and 8.6,
and provided that in no case (except due to an adjustment contemplated by
Section 7 or any repricing that may be approved by stockholders) shall such an
adjustment constitute a repricing (by amendment, cancellation and regrant,
exchange or other means) of the per share exercise or base price of any option
or stock appreciation right;

	 	(h)	 	determine the date of grant of an award, which may be a
designated date after but not before the date of the Administrator’s action
(unless otherwise designated by the Administrator, the date of grant of an
award shall be the date upon which the Administrator took the action granting
an award);

	 	(i)	 	determine whether, and the extent to which, adjustments are
required pursuant to Section 7 hereof and authorize the termination,
conversion, substitution or succession of awards upon the occurrence of an
event of the type described in Section 7;

	 	(j)	 	acquire or settle (subject to Sections 7 and 8.6) rights under
awards in cash, stock of equivalent value, or other consideration; and

	 	(k)	 	determine the fair market value of the Common Stock or awards
under this Plan from time to time and/or the manner in which such value will be
determined.

	 	3.3	 	Binding Determinations. Any action taken by, or inaction of, the Corporation,
any Subsidiary or Affiliate, or the Administrator relating or pursuant to this Plan and
within its authority hereunder or under applicable law shall be within the absolute
discretion of that entity or body and shall be conclusive and binding upon all persons.
Neither the Board nor any Board committee, nor any member thereof or person acting at
the direction thereof, shall be liable for any act, omission, interpretation,
construction or determination made in good faith in connection with this Plan (or any
award made under this Plan), and all such persons shall be entitled to indemnification
and reimbursement by the Corporation in respect of any claim, loss, damage or expense
(including, without limitation, attorneys’ fees) arising or resulting therefrom to the
fullest extent permitted by law and/or under any directors and officers liability
insurance coverage that may be in effect from time to time.

	 	3.4	 	Reliance on Experts. In making any determination or in taking or not taking
any action under this Plan, the Board or a committee, as the case may be, may obtain
and may rely upon the advice of experts, including employees and professional advisors
to the Corporation. No director, officer or agent of the Corporation, or any of its
Subsidiaries or Affiliates, shall be liable for any such action or determination taken
or made or omitted in good faith.

	 	3.5	 	Delegation. The Administrator may delegate ministerial, non-discretionary
functions to individuals who are officers or employees of the Corporation or any of its
Subsidiaries or Affiliates.

4. SHARES OF COMMON STOCK SUBJECT TO THE PLAN; SHARE LIMITS

	 	4.1	 	Shares Available. Subject to the provisions of Section 7.1, the capital stock
that may be delivered under this Plan shall be shares of the Corporation’s authorized
but unissued Common Stock and any shares of its Common Stock held as treasury shares.
For purposes of this Plan, “Common Stock” shall mean the common stock of the
Corporation and such other securities or property as may become the subject of awards
under this Plan, or may become subject to such awards, pursuant to an adjustment made
under Section 7.1.

	 	4.2	 	Share Limits. The maximum number of shares of Common Stock that may be
delivered pursuant to awards granted to Eligible Persons under this Plan (the “Share
Limit”) is equal to the sum of (a) 3,244,279 shares, plus (b) the number of any shares
subject to stock options granted under the Corporation’s 1995 Stock Option Plan (the
“1995 Plan”) and outstanding as of the date the Board approved this amended version of
the Plan (the “Board Approval Date”) which expire, or for any reason are cancelled or
terminated, after the Board Approval Date without being exercised; provided that in no
event shall the Share Limit exceed 6,108,450 shares (which is the sum of the 3,244,279
shares set forth above, plus the maximum number of shares subject to options previously
granted and outstanding under the 1995 Plan as of the Board Approval Date). The
following limits also apply with respect to awards granted under this Plan:

	 	(a)	 	The maximum number of shares of Common Stock that may be
delivered pursuant to options qualified as incentive stock options granted
under this Plan is 450,000 shares, subject to the Plan limit set forth above.

	 	(b)	 	The maximum number of shares of Common Stock subject to those
options and stock appreciation rights that are granted during any calendar year
to any individual under this Plan is 750,000 shares.

	 	(c)	 	The maximum number of shares of Common Stock that may be
delivered pursuant to awards granted under this Plan, other than pursuant to
those described in the next sentence, is 1,400,000. This limit does not apply,
however, to (1) shares delivered in respect of compensation earned but
deferred, (2) except as expressly provided in Section 5.1.1 (which generally
requires that shares delivered in respect of “discounted” stock options be
charged against this limit), shares delivered in respect of stock option
grants, and (3) except as expressly provided in Section 5.1.2 (which generally
requires that shares delivered in respect of “discounted” stock appreciation
right grants be charged against this limit), shares delivered in respect of
stock appreciation right grants.

	 	(d)	 	Additional limits with respect to Performance-Based Awards are
set forth in Section 5.2.3.

Each of the foregoing numerical limits is subject to adjustment as contemplated by
Section 4.3, Section 7.1, and Section 8.10.

	 	4.3	 	Awards Settled in Cash, Reissue of Awards and Shares. To the extent that an
award is settled in cash or a form other than shares of Common Stock, the shares that
would have been delivered had there been no such cash or other settlement shall not be
counted against the shares available for issuance under this Plan. In the event that
 shares of Common Stock are delivered in respect of a dividend equivalent right, only
the actual number of shares delivered with respect to the award shall be counted
against the share limits of this Plan. To the extent that shares of Common Stock are
delivered pursuant to the exercise of a stock appreciation right or stock option, the
number of underlying shares as to which the exercise related shall be counted against
the applicable share limits under Section 4.2, as opposed to only counting the shares
actually issued. (For purposes of clarity, if a stock appreciation right relates to
100,000 shares and is exercised at a time when the payment due to the participant is
15,000 shares, 100,000 shares shall be charged against the applicable share limits
under Section 4.2 with respect to such exercise.) Shares that are subject to or
underlie awards which expire or for any reason are cancelled or terminated, are
forfeited, fail to vest, or for any other reason are not paid or delivered under this
Plan shall again be available for subsequent awards under this Plan. Refer to Section
8.10 for application of the foregoing share limits with respect to assumed awards. The
foregoing adjustments to the share limits of this Plan are subject to any applicable
limitations under Section 162(m) of the Code with respect to awards intended as
performance-based compensation thereunder.

	 	4.4	 	Reservation of Shares; No Fractional Shares; Minimum Issue. The Corporation
shall at all times reserve a number of shares of Common Stock sufficient to cover the
Corporation’s obligations and contingent obligations to deliver shares with respect to
awards then outstanding under this Plan (exclusive of any dividend equivalent
obligations to the extent the Corporation has the right to settle such rights in cash).
No fractional shares shall be delivered under this Plan. The Administrator may pay
cash in lieu of any fractional shares in settlements of awards under this Plan. No
fewer than 100 shares may be purchased on exercise of any award (or, in the case of
stock appreciation or purchase rights, no fewer than 100 rights may be exercised at any
one time) unless the total number purchased or exercised is the total number at the
time available for purchase or exercise under the award.

5. AWARDS

	 	5.1	 	Type and Form of Awards. The Administrator shall determine the type or types
of award(s) to be made to each selected Eligible Person. Awards may be granted singly,
in combination or in tandem. Awards also may be made in combination or in tandem with,
in replacement of, as alternatives to, or as the payment form for grants or rights
under any other employee or compensation plan of the Corporation or one of its
Subsidiaries or Affiliates. The types of awards that may be granted under this Plan
are:

5.1.1 Stock Options. A stock option is the grant of a right to purchase a specified
number of shares of Common Stock during a specified period as determined by the
Administrator. An option may be intended as an incentive stock option within the
meaning of Section 422 of the Code (an “ISO”) or a nonqualified stock option (an
option not intended to be an ISO). The award agreement for an option will indicate
if the option is intended as an ISO, otherwise it will be deemed to be a
nonqualified stock option. The maximum term of each option (ISO or nonqualified)
shall be ten (10) years. The per share exercise price for each option shall be not
less than 100% of the fair market value of a share of Common Stock on the date of
grant of the option, except as follows: (a) in the case of a stock option granted
retroactively in tandem with or as a substitution for another award, the per share
exercise price may be no lower than the fair market value of a share of Common Stock
on the date such other award was granted (to the extent consistent with Sections 422
and 424 of the Code in the case of options intended as incentive stock options); and
(b) in any other circumstances, a nonqualified stock option may be granted with a
per share exercise price that is less than the fair market value of a share of
Common Stock on the date of grant, provided that any shares delivered in respect of
such option shall be charged against the limit of Section 4.2(c) (the limit on
full-value awards) as well as any other applicable limit under Section 4.2. When an
option is exercised, the exercise price for the shares to be purchased shall be paid
in full in cash or such other method permitted by the Administrator consistent with
Section 5.5.

5.1.2 Additional Rules Applicable to ISOs. To the extent that the aggregate fair
market value (determined at the time of grant of the applicable option) of stock
with respect to which ISOs first become exercisable by a participant in any calendar
year exceeds $100,000, taking into account both Common Stock subject to ISOs under
this Plan and stock subject to ISOs under all other plans of the Corporation or one
of its Subsidiaries (or any parent or predecessor corporation to the extent required
by and within the meaning of Section 422 of the Code and the regulations promulgated
thereunder), such options shall be treated as nonqualified stock options. In
reducing the number of options treated as ISOs to meet the $100,000 limit, the most
recently granted options shall be reduced first. To the extent a reduction of
simultaneously granted options is necessary to meet the $100,000 limit, the
Administrator may, in the manner and to the extent permitted by law, designate which
 shares of Common Stock are to be treated as shares acquired pursuant to the exercise
of an ISO. ISOs may only be granted to employees of the Corporation or one of its
subsidiaries (for this purpose, the term “subsidiary” is used as defined in Section
424(f) of the Code, which generally requires an unbroken chain of ownership of at
least 50% of the total combined voting power of all classes of stock of each
subsidiary in the chain beginning with the Corporation and ending with the
subsidiary in question). There shall be imposed in any award agreement relating to
ISOs such other terms and conditions as from time to time are required in order that
the option be an “incentive stock option” as that term is defined in Section 422 of
the Code. No ISO may be granted to any person who, at the time the option is
granted, owns (or is deemed to own under Section 424(d) of the Code) shares of
outstanding Common Stock possessing more than 10% of the total combined voting power
of all classes of stock of the Corporation, unless the exercise price of such option
is at least 110% of the fair market value of the stock subject to the option and
such option by its terms is not exercisable after the expiration of five years from
the date such option is granted.

5.1.3 Stock Appreciation Rights. A stock appreciation right or “SAR” is a right to
receive a payment, in cash and/or Common Stock, equal to the excess of the fair
market value of a specified number of shares of Common Stock on the date the SAR is
exercised over the fair market value of a share of Common Stock on the date the SAR
was granted (the “base price”) as set forth in the applicable award agreement except
as follows: (a) in the case of a SAR granted retroactively or in tandem with or as
substitution for another award, the base price may be no lower than the fair market
value of a share of Common Stock on the date such other award was granted; and (b)
in any other circumstances, a SAR may be granted with a base price that is less than
the fair market value of a share of Common Stock on the date of grant, provided that
any shares actually delivered in respect of such award shall be charged against the
limit of Section 4.2(c) (the limit on full-value awards) as well as any other
applicable limit under Section 4.2. The maximum term of an SAR shall be ten (10)
years.

5.1.4 Other Awards. The other types of awards that may be granted under this Plan
include: (a) stock bonuses, restricted stock, performance stock, stock units,
phantom stock, dividend equivalents, or similar rights to purchase or acquire
 shares, whether at a fixed or variable price or ratio related to the Common Stock,
upon the passage of time, the occurrence of one or more events, or the satisfaction
of performance criteria or other conditions, or any combination thereof; (b) any
similar securities with a value derived from the value of or related to the Common
Stock and/or returns thereon; or (c) cash awards granted consistent with Section 5.2
below.

	 	5.2	 	Section 162(m) Performance-Based Awards. Without limiting the generality of
the foregoing, any of the types of awards listed in Section 5.1.4 above may be, and
options and SARs granted with an exercise or base price not less than the fair market
value of a share of Common Stock at the date of grant (“Qualifying Options” and
“Qualifying SARS,” respectively) typically will be, granted as awards intended to
satisfy the requirements for “performance-based compensation” within the meaning of
Section 162(m) of the Code (“Performance-Based Awards”). The grant, vesting,
exercisability or payment of Performance-Based Awards may depend (or, in the case of
Qualifying Options or Qualifying SARs, may also depend) on the degree of achievement of
one or more performance goals relative to a pre-established targeted level or level
using one or more of the Business Criteria set forth below (on an absolute or relative
basis) for the Corporation on a consolidated basis or for one or more of the
Corporation’s subsidiaries, segments, divisions or business units, or any combination
of the foregoing. Any Qualifying Option or Qualifying SAR shall be subject only to the
requirements of Section 5.2.1 and 5.2.3 in order for such award to satisfy the
requirements for “performance-based compensation” under Section 162(m) of the Award.
Any other Performance-Based Award shall be subject to all of the following provisions
of this Section 5.2.

5.2.1 Class; Administrator. The eligible class of persons for Performance-Based
Awards shall be officers and employees of the Corporation and its Subsidiaries. The
Administrator approving Performance-Based Awards or making any certification
required pursuant to Section 5.2.4 must be constituted as provided in Section 3.1
for awards that are intended as performance-based compensation under Section 162(m)
of the Code.

5.2.2 Performance Goals. The specific performance goals for Performance-Based
Awards (other than Qualifying Options and Qualifying SARs) shall be, on an absolute
or relative basis, established based on one or more of the business criteria set
forth on Appendix A hereto (“Business Criteria”) as selected by the Administrator in
its sole discretion. To qualify awards as performance-based under Section 162(m),
the applicable Business Criterion (or Business Criteria, as the case may be) and
specific performance goal or goals (“targets”) must be established and approved by
the Administrator during the first 90 days of the performance period (and, in the
case of performance periods of less than one year, in no event more than 25% of the
performance period has elapsed) and while performance relating to such target(s)
remains substantially uncertain within the meaning of Section 162(m) of the Code.
Performance targets shall be adjusted to mitigate the unbudgeted impact of material,
unusual or nonrecurring gains and losses, accounting changes or other extraordinary
events not foreseen at the time the targets were set unless the Administrator
provides otherwise at the time of establishing the targets. The applicable
performance measurement period may not be less than three months nor more than 10
years.

5.2.3 Form of Payment; Maximum Performance-Based Award. Grants or awards under this
Section 5.2 may be paid in cash or shares of Common Stock or any combination
thereof. Grants of Qualifying Options and Qualifying SARs to any one participant in
any one calendar year shall be subject to the limit set forth in Section 4.2(b).
The maximum number of shares of Common Stock which may be delivered pursuant to
Performance-Based Awards (other than Qualifying Options and Qualifying SARs, and
other than cash awards covered by the following sentence) that are granted to any
one participant in any one calendar year shall not exceed 750,000 shares, either
individually or in the aggregate, subject to adjustment as provided in Section 7.1.
In addition, the aggregate amount of compensation to be paid to any one participant
in respect of all Performance-Based Awards payable only in cash and not related to
 shares of Common Stock and granted to that participant in any one calendar year
shall not exceed $10,000,000.00. Awards that are cancelled during the year shall be
counted against these limits to the extent permitted by Section 162(m) of the Code.

5.2.4 Certification of Payment. Before any Performance-Based Award under this
Section 5.2 (other than Qualifying Options and Qualifying SARs) is paid and to the
extent required to qualify the award as performance-based compensation within the
meaning of Section 162(m) of the Code, the Administrator must certify in writing
that the performance target(s) and any other material terms of the Performance-Based
Award were in fact timely satisfied.

5.2.5 Reservation of Discretion. The Administrator will have the discretion to
determine the restrictions or other limitations of the individual awards granted
under this Section 5.2 including the authority to reduce awards, payouts or vesting
or to pay no awards, in its sole discretion, if the Administrator preserves such
authority at the time of grant by language to this effect in its authorizing
resolutions or otherwise.

5.2.6 Expiration of Grant Authority. As required pursuant to Section 162(m) of the
Code and the regulations promulgated thereunder, the Administrator’s authority to
grant new awards that are intended to qualify as performance-based compensation
within the meaning of Section 162(m) of the Code (other than Qualifying Options and
Qualifying SARs) shall terminate upon the first meeting of the Corporation’s
stockholders that occurs in the fifth year following the year in which the
Corporation’s stockholders first approve this Plan.

	 	5.3	 	Award Agreements. Each award shall be evidenced by a written award agreement
in the form approved by the Administrator and executed on behalf of the Corporation
and, if required by the Administrator, executed by the recipient of the award. The
Administrator may authorize any officer of the Corporation (other than the particular
award recipient) to execute any or all award agreements on behalf of the Corporation.
The award agreement shall set forth the material terms and conditions of the award as
established by the Administrator consistent with the express limitations of this Plan.

	 	5.4	 	Deferrals and Settlements. Payment of awards may be in the form of cash,
Common Stock, other awards or combinations thereof as the Administrator shall
determine, and with such restrictions as it may impose. The Administrator may also
require or permit participants to elect to defer the issuance of shares or the
settlement of awards in cash under such rules and procedures as it may establish under
this Plan. The Administrator may also provide that deferred settlements include the
payment or crediting of interest or other earnings on the deferral amounts, or the
payment or crediting of dividend equivalents where the deferred amounts are denominated
in shares.

	 	5.5	 	Consideration for Common Stock or Awards. The purchase price for any award
granted under this Plan or the Common Stock to be delivered pursuant to an award, as
applicable, may be paid by means of any lawful consideration as determined by the
Administrator, including, without limitation, one or a combination of the following
methods:

	 	•	 	services rendered by the recipient of such award;

	 	•	 	cash, check payable to the order of the Corporation, or electronic funds
transfer;

	 	•	 	notice and third party payment in such manner as may be authorized by the
Administrator;

	 	•	 	the delivery of previously owned shares of Common Stock;

	 	•	 	by a reduction in the number of shares otherwise deliverable pursuant to the
award; or

	 	•	 	subject to such procedures as the Administrator may adopt, pursuant to a
“cashless exercise” with a third party who provides financing for the purposes
of (or who otherwise facilitates) the purchase or exercise of awards.

In no event shall any shares newly-issued by the Corporation be issued for less than
the minimum lawful consideration for such shares or for consideration other than
consideration permitted by applicable state law. In the event that the
Administrator allows a participant to exercise an award by delivering shares of
Common Stock previously owned by such participant and unless otherwise expressly
provided by the Administrator, any shares delivered which were initially acquired by
the participant from the Corporation (upon exercise of a stock option or otherwise)
must have been owned by the participant at least six months as of the date of
delivery. Shares of Common Stock used to satisfy the exercise price of an option
shall be valued at their fair market value on the date of exercise. The Corporation
will not be obligated to deliver any shares unless and until it receives full
payment of the exercise or purchase price therefor and any related withholding
obligations under Section 8.5 and any other conditions to exercise or purchase have
been satisfied. Unless otherwise expressly provided in the applicable award
agreement, the Administrator may at any time eliminate or limit a participant’s
ability to pay the purchase or exercise price of any award or shares by any method
other than cash payment to the Corporation.

	 	5.6	 	Definition of Fair Market Value. For purposes of this Plan, “fair market
value” shall mean, unless otherwise determined or provided by the Administrator in the
circumstances, the last price for a share of Common Stock as furnished by the National
Association of Securities Dealers, Inc. (the “NASD”) through the NASDAQ National Market
Reporting System (the “National Market”) for the date in question or, if no sales of
Common Stock were reported by the NASD on that date, the last price for a share of
Common Stock as furnished by the NASD through the National Market for the next
preceding day on which sales of Common Stock were reported by the NASD. The
Administrator may, however, provide with respect to one or more awards that the fair
market value shall equal the last price for a share of Common Stock as furnished by the
NASD through the National Market available on the date in question or the average of
the high and low trading prices of a share of Common Stock as furnished by the NASD
through the National Market for the date in question or the most recent trading day.
If the Common Stock is no longer listed or is no longer actively traded on the National
Market as of the applicable date, the fair market value of the Common Stock shall be
the value as reasonably determined by the Administrator for purposes of the award in
the circumstances. The Administrator also may adopt a different methodology for
determining fair market value with respect to one or more awards if a different
methodology is necessary or advisable to secure any intended favorable tax, legal or
other treatment for the particular award(s) (for example, and without limitation, the
Administrator may provide that fair market value for purposes of one or more awards
will be based on an average of closing prices (or the average of high and low daily
trading prices) for a specified period preceding the relevant date).

5.7 Transfer Restrictions.

5.7.1 Limitations on Exercise and Transfer. Unless otherwise expressly provided in
(or pursuant to) this Section 5.7, by applicable law and by the award agreement, as
the same may be amended, (a) all awards are non-transferable and shall not be
subject in any manner to sale, transfer, anticipation, alienation, assignment,
pledge, encumbrance or charge; (b) awards shall be exercised only by the
participant; and (c) amounts payable or shares issuable pursuant to any award shall
be delivered only to (or for the account of) the participant.

5.7.2 Exceptions. The Administrator may permit awards to be exercised by and paid
to, or otherwise transferred to, other persons or entities pursuant to such
conditions and procedures, including limitations on subsequent transfers, as the
Administrator may, in its sole discretion, establish in writing. Any permitted
transfer shall be subject to compliance with applicable federal and state securities
laws.

5.7.3 Further Exceptions to Limits on Transfer. The exercise and transfer
restrictions in Section 5.7.1 shall not apply to:

(a) transfers to the Corporation,

	 	(b)	 	the designation of a beneficiary to receive benefits in the
event of the participant’s death or, if the participant has died, transfers to
or exercise by the participant’s beneficiary, or, in the absence of a validly
designated beneficiary, transfers by will or the laws of descent and
distribution,

	 	(c)	 	subject to any applicable limitations on ISOs, transfers to a
family member (or former family member) pursuant to a domestic relations order
if approved or ratified by the Administrator,

	 	(d)	 	if the participant has suffered a disability, permitted
transfers or exercises on behalf of the participant by his or her legal
representative, or

	 	(e)	 	the authorization by the Administrator of “cashless exercise”
procedures with third parties who provide financing for the purpose of (or who
otherwise facilitate) the exercise of awards consistent with applicable laws
and the express authorization of the Administrator.

	 	5.8	 	International Awards. One or more awards may be granted to Eligible Persons
who provide services to the Corporation or one of its Subsidiaries or Affiliates
outside of the United States. Any awards granted to such persons may be granted
pursuant to the terms and conditions of any applicable sub-plans, if any, appended to
this Plan and approved by the Administrator.

6. EFFECT OF TERMINATION OF SERVICE ON AWARDS

	 	6.1	 	General. The Administrator shall establish the effect of a termination of
employment or service on the rights and benefits under each award under this Plan and
in so doing may make distinctions based upon, inter alia, the cause of termination and
type of award. If the participant is not an employee of the Corporation or one of its
Subsidiaries or Affiliates and provides other services to the Corporation or one of its
Subsidiaries or Affiliates, the Administrator shall be the sole judge for purposes of
this Plan (unless a contract or the award otherwise provides) of whether the
participant continues to render services to the Corporation or one of its Subsidiaries
or Affiliates and the date, if any, upon which such services shall be deemed to have
terminated.

	 	6.2	 	Events Not Deemed Terminations of Service. Unless the express policy of the
Corporation or one of its Subsidiaries or Affiliates, or the Administrator, otherwise
provides, the employment relationship shall not be considered terminated in the case of
(a) sick leave, (b) military leave, or (c) any other leave of absence authorized by the
Corporation or one of its Subsidiaries or Affiliates or the Administrator; provided
that unless reemployment upon the expiration of such leave is guaranteed by contract or
law, such leave is for a period of not more than 90 days. In the case of any employee
of the Corporation or one of its Subsidiaries or Affiliates on an approved leave of
absence, continued vesting of the award while on leave from the employ of the
Corporation or one of its Subsidiaries or Affiliates may be suspended until the
employee returns to service, unless the Administrator otherwise provides or applicable
law otherwise requires. In no event shall an award be exercised after the expiration
of the term set forth in the award agreement.

	 	6.3	 	Effect of Change of Subsidiary Status. For purposes of this Plan and any
award, if an entity ceases to be a Subsidiary or other Affiliate of the Corporation, as
determined by the Administrator, a termination of employment or service shall be deemed
to have occurred with respect to each Eligible Person in respect of such Subsidiary or
other Affiliate who does not continue as an Eligible Person in respect of the
Corporation or another of its Subsidiaries or Affiliates that continues as such, as
determined by the Administrator, after giving effect to the transaction or other event
giving rise to the change in status.

7. ADJUSTMENTS; ACCELERATION

	 	7.1	 	Adjustments. Upon or in contemplation of: any reclassification,
recapitalization, stock split (including a stock split in the form of a stock dividend)
or reverse stock split (“stock split”); any merger, combination, consolidation, or
other reorganization; any spin-off, split-up, or similar extraordinary dividend
distribution in respect of the Common Stock (whether in the form of securities or
property); any exchange of Common Stock or other securities of the Corporation, or any
similar, unusual or extraordinary corporate transaction in respect of the Common Stock;
or a sale of all or substantially all the business or assets of the Corporation as an
entirety; then the Administrator shall, in such manner, to such extent (if any) and at
such time as it deems appropriate and equitable in the circumstances:

	 	(a)	 	proportionately adjust any or all of (1) the number and type of
 shares of Common Stock (or other securities) that thereafter may be made the
subject of awards (including the specific share limits, maximums and numbers of
 shares set forth elsewhere in this Plan), (2) the number, amount and type of
 shares of Common Stock (or other securities or property) subject to any or all
outstanding awards, (3) the grant, purchase, or exercise price (which term
includes the base price of any SAR or similar right) of any or all outstanding
awards, (4) the securities, cash or other property deliverable upon exercise or
payment of any outstanding awards, or (5) (subject to Sections 7.8 and
8.8.3(a)) the performance standards applicable to any outstanding awards, or

	 	(b)	 	make provision for a cash payment or for the assumption,
substitution or exchange of any or all outstanding share-based awards or the
cash, securities or property deliverable to the holder of any or all
outstanding share-based awards, based upon the distribution or consideration
payable to holders of the Common Stock upon or in respect of such event.

The Administrator may adopt such valuation methodologies for outstanding awards as
it deems reasonable in the event of a cash or property settlement and, in the case
of options, SARs or similar rights, but without limitation on other methodologies,
may base such settlement solely upon the excess if any of the per share amount
payable upon or in respect of such event over the exercise or base price of the
award. With respect to any award of an ISO, the Administrator may make such an
adjustment that causes the option to cease to qualify as an ISO without the consent
of the affected participant.

In any of such events, the Administrator may take such action prior to such event to
the extent that the Administrator deems the action necessary to permit the
participant to realize the benefits intended to be conveyed with respect to the
underlying shares in the same manner as is or will be available to stockholders
generally. In the case of any stock split or reverse stock split, if no action is
taken by the Administrator, the proportionate adjustments contemplated by clause (a)
above shall nevertheless be made.

	 	7.2	 	Automatic Acceleration of Awards. Upon a dissolution of the Corporation or
other event described in Section 7.1 that the Corporation does not survive (or does not
survive as a public company in respect of its Common Stock), then each then-outstanding
option and SAR shall become fully vested, all shares of restricted stock then
outstanding shall fully vest free of restrictions, and each other award granted under
this Plan that is then outstanding shall become payable to the holder of such award;
provided that such acceleration provision shall not apply, unless otherwise expressly
provided by the Administrator, with respect to any award to the extent that the
Administrator has made a provision for the substitution, assumption, exchange or other
continuation or settlement of the award, or the award would otherwise continue in
accordance with its terms, in the circumstances.

	 	7.3	 	Possible Acceleration of Awards. Without limiting Section 7.2, in the event of
a Change in Control Event (as defined below), the Administrator may, in its discretion,
provide that any outstanding option or SAR shall become fully vested, that any share of
restricted stock then outstanding shall fully vest free of restrictions, and that any
other award granted under this Plan that is then outstanding shall be payable to the
holder of such award. The Administrator may take such action with respect to all
awards then outstanding or only with respect to certain specific awards identified by
the Administrator in the circumstances. For purposes of this Plan, “Change in Control
Event” means any of the following:

	 	(a)	 	The acquisition by any individual, entity or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act (a “Person”)) of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 25% or more of either (1) the then-outstanding shares of
common stock of the Corporation (the “Outstanding Company Common Stock”) or (2)
the combined voting power of the then-outstanding voting securities of the
Corporation entitled to vote generally in the election of directors (the
“Outstanding Company Voting Securities”); provided, however, that, for purposes
of this definition, the following acquisitions shall not constitute a Change in
Control Event; (A) any acquisition directly from the Corporation, (B) any
acquisition by the Corporation, (C) any acquisition by any employee benefit
plan (or related trust) sponsored or maintained by the Corporation or any
affiliate of the Corporation or a successor, or (D) any acquisition by any
entity pursuant to a transaction that complies with Sections (c)(1), (2) and
(3) below;

	 	(b)	 	Individuals who, as of the Effective Date, constitute the Board
(the “Incumbent Board”) cease for any reason to constitute at least a majority
of the Board; provided, however, that any individual becoming a director
subsequent to the Effective Date whose election, or nomination for election by
the Corporation’s stockholders, was approved by a vote of at least two-thirds
of the directors then comprising the Incumbent Board (including for these
purposes, the new members whose election or nomination was so approved, without
counting the member and his predecessor twice) shall be considered as though
such individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election
or removal of directors or other actual or threatened solicitation of proxies
or consents by or on behalf of a Person other than the Board;

	 	(c)	 	Consummation of a reorganization, merger, statutory share
exchange or consolidation or similar corporate transaction involving the
Corporation or any of its Subsidiaries, a sale or other disposition of all or
substantially all of the assets of the Corporation, or the acquisition of
assets or stock of another entity by the Corporation or any of its Subsidiaries
(each, a “Business Combination”), in each case unless, following such Business
Combination, (1) all or substantially all of the individuals and entities that
were the beneficial owners of the Outstanding Company Common Stock and the
Outstanding Company Voting Securities immediately prior to such Business
Combination beneficially own, directly or indirectly, more than 50% of the
then-outstanding shares of common stock and the combined voting power of the
then-outstanding voting securities entitled to vote generally in the election
of directors, as the case may be, of the entity resulting from such Business
Combination (including, without limitation, an entity that, as a result of such
transaction, owns the Corporation or all or substantially all of the
Corporation’s assets directly or through one or more subsidiaries (a “Parent”))
in substantially the same proportions as their ownership immediately prior to
such Business Combination of the Outstanding Company Common Stock and the
Outstanding Company Voting Securities, as the case may be, (2) no Person
(excluding any entity resulting from such Business Combination or a Parent or
any employee benefit plan (or related trust) of the Corporation or such entity
resulting from such Business Combination or Parent) beneficially owns, directly
or indirectly, 25% or more of, respectively, the then-outstanding shares of
common stock of the entity resulting from such Business Combination or the
combined voting power of the then-outstanding voting securities of such entity,
except to the extent that the ownership in excess of 25% existed prior to the
Business Combination, and (3) at least a majority of the members of the board
of directors or trustees of the entity resulting from such Business Combination
or a Parent were members of the Incumbent Board at the time of the execution of
the initial agreement or of the action of the Board providing for such Business
Combination; or

	 	(d)	 	Approval by the stockholders of the Corporation of a complete
liquidation or dissolution of the Corporation other than in the context of a
transaction that does not constitute a Change in Control Event under clause (c)
above.

	 	7.4	 	Early Termination of Awards. Any award that has been accelerated as required
or contemplated by Section 7.2 or 7.3 (or would have been so accelerated but for
Section 7.5, 7.6 or 7.7) shall terminate upon the related event referred to in Section
7.2 or 7.3, as applicable, subject to any provision that has been expressly made by the
Administrator, through a plan of reorganization or otherwise, for the survival,
substitution, assumption, exchange or other continuation or settlement of such award
and provided that, in the case of options and SARs that will not survive, be
substituted for, assumed, exchanged, or otherwise continued or settled in the
transaction, the holder of such award shall be given reasonable advance notice of the
impending termination and a reasonable opportunity to exercise his or her outstanding
options and SARs in accordance with their terms before the termination of such awards
(except that in no case shall more than ten days’ notice of accelerated vesting and the
impending termination be required and any acceleration may be made contingent upon the
actual occurrence of the event).

	 	7.5	 	Other Acceleration Rules. Any acceleration of awards pursuant to this Section
7 shall comply with applicable legal requirements and, if necessary to accomplish the
purposes of the acceleration or if the circumstances require, may be deemed by the
Administrator to occur a limited period of time not greater than 30 days before the
event. Without limiting the generality of the foregoing, the Administrator may deem an
acceleration to occur immediately prior to the applicable event and/or reinstate the
original terms of an award if an event giving rise to an acceleration does not occur.
The Administrator may override the provisions of Section 7.2, 7.3, 7.4 and/or 7.6 by
express provision in the award agreement and may accord any Eligible Person a right to
refuse any acceleration, whether pursuant to the award agreement or otherwise, in such
circumstances as the Administrator may approve. The portion of any ISO accelerated in
connection with a Change in Control Event or any other action permitted hereunder shall
remain exercisable as an ISO only to the extent the applicable $100,000 limitation on
ISOs is not exceeded. To the extent exceeded, the accelerated portion of the option
shall be exercisable as a nonqualified stock option under the Code.

	 	7.6	 	Possible Rescission of Acceleration. If the vesting of an award has been
accelerated expressly in anticipation of an event or upon stockholder approval of an
event and the Administrator later determines that the event will not occur, the
Administrator may rescind the effect of the acceleration as to any then outstanding and
unexercised or otherwise unvested awards.

	 	7.7	 	Golden Parachute Limitation. Notwithstanding anything else contained in this
Section 7 to the contrary, in no event shall an award be accelerated under this Plan to
an extent or in a manner which would not be fully deductible by the Corporation or one
of its Subsidiaries or Affiliates for federal income tax purposes because of Section
280G of the Code, nor shall any payment hereunder be accelerated to the extent any
portion of such accelerated payment would not be deductible by the Corporation or one
of its Subsidiaries or Affiliates because of Section 280G of the Code. If a
participant would be entitled to benefits or payments hereunder and under any other
plan or program that would constitute “parachute payments” as defined in Section 280G
of the Code, then the participant may by written notice to the Corporation designate
the order in which such parachute payments will be reduced or modified so that the
Corporation or one of its Subsidiaries or Affiliates is not denied federal income tax
deductions for any “parachute payments” because of Section 280G of the Code.
Notwithstanding the foregoing, if a participant is a party to an employment or other
agreement with the Corporation or one of its Subsidiaries or Affiliates, or is a
participant in a severance program sponsored by the Corporation or one of its
Subsidiaries or Affiliates, that contains express provisions regarding Section 280G
and/or Section 4999 of the Code (or any similar successor provision), the Section 280G
and/or Section 4999 provisions of such employment or other agreement or plan, as
applicable, shall control as to any awards held by that participant (for example, and
without limitation, a participant may be a party to an employment agreement with the
Corporation or one of its Subsidiaries or Affiliates that provides for a “gross-up” as
opposed to a “cut-back” in the event that the Section 280G thresholds are reached or
exceeded in connection with a change in control and, in such event, the Section 280G
and/or Section 4999 provisions of such employment agreement shall control as to any
awards held by that participant).

	 	7.8	 	Section 162(m) Limitations. To the extent limited by Section 162(m) of the
Code in the case of an award intended as performance-based compensation thereunder and
necessary to assure the deductibility of the compensation payable under the award, the
Administrator shall have no discretion under this Plan (a) to increase the amount of
compensation or the number of shares that would otherwise be due upon the attainment of
the applicable performance target or the exercise of the option or SAR, or (b) to waive
the achievement of any applicable performance goal as a condition to receiving a
benefit or right under the award.

8. OTHER PROVISIONS

	 	8.1	 	Compliance with Laws. This Plan, the granting and vesting of awards under this
Plan, the offer, issuance and delivery of shares of Common Stock, the acceptance of
promissory notes and/or the payment of money under this Plan or under awards are
subject to compliance with all applicable federal and state laws, rules and regulations
(including but not limited to state and federal securities law, federal margin
requirements) and to such approvals by any listing, regulatory or governmental
authority as may, in the opinion of counsel for the Corporation or one of its
Subsidiaries or Affiliates, be necessary or advisable in connection therewith. The
person acquiring any securities under this Plan will, if requested by the Corporation
or one of its Subsidiaries or Affiliates, provide such assurances and representations
to the Corporation or one of its Subsidiaries or Affiliates as the Administrator may
deem necessary or desirable to assure compliance with all applicable legal and
accounting requirements.

	 	8.2	 	Employment Status. No person shall have any claim or rights to be granted an
award (or additional awards, as the case may be) under this Plan, subject to any
express contractual rights (set forth in a document other than this Plan) to the
contrary.

	 	8.3	 	No Employment/Service Contract. Nothing contained in this Plan (or in any
other documents under this Plan or in any award) shall confer upon any Eligible Person
or other participant any right to continue in the employ or other service of the
Corporation or one of its Subsidiaries or Affiliates, constitute any contract or
agreement of employment or other service or affect an employee’s status as an employee
at will, nor shall interfere in any way with the right of the Corporation or one of its
Subsidiaries or Affiliates to change a person’s compensation or other benefits, or to
terminate his or her employment or other service, with or without cause. Nothing in
this Section 8.3, however, is intended to adversely affect any express independent
right of such person under a separate employment or service contract other than an
award agreement.

	 	8.4	 	Plan Not Funded. Awards payable under this Plan shall be payable in shares or
from the general assets of the Corporation, and no special or separate reserve, fund or
deposit shall be made to assure payment of such awards. No participant, beneficiary or
other person shall have any right, title or interest in any fund or in any specific
asset (including shares of Common Stock, except as expressly otherwise provided) of the
Corporation by reason of any award hereunder. Neither the provisions of this Plan (or
of any related documents), nor the creation or adoption of this Plan, nor any action
taken pursuant to the provisions of this Plan shall create, or be construed to create,
a trust of any kind or a fiduciary relationship between the Corporation or one of its
Subsidiaries or Affiliates and any participant, beneficiary or other person. To the
extent that a participant, beneficiary or other person acquires a right to receive
payment pursuant to any award hereunder, such right shall be no greater than the right
of any unsecured general creditor of the Corporation.

	 	8.5	 	Tax Withholding. Upon any exercise, vesting, or payment of any award or upon
the disposition of shares of Common Stock acquired pursuant to the exercise of an ISO
prior to satisfaction of the holding period requirements of Section 422 of the Code,
the Corporation or one of its Subsidiaries or Affiliates shall have the right at its
option to:

	 	(a)	 	require the participant (or the participant’s personal
representative or beneficiary, as the case may be) to pay or provide for
payment of at least the minimum amount of any taxes which the Corporation or
one of its Subsidiaries or Affiliates may be required to withhold with respect
to such award event or payment; or

	 	(b)	 	deduct from any amount otherwise payable in cash to the
participant (or the participant’s personal representative or beneficiary, as
the case may be) the minimum amount of any taxes which the Corporation or one
of its Subsidiaries or Affiliates may be required to withhold with respect to
such cash payment.

In any case where a tax is required to be withheld in connection with the delivery
of shares of Common Stock under this Plan, the Administrator may in its sole
discretion (subject to Section 8.1) grant (either at the time of the award or
thereafter) to the participant the right to elect, pursuant to such rules and
subject to such conditions as the Administrator may establish, to have the
Corporation reduce the number of shares to be delivered by (or otherwise reacquire)
the appropriate number of shares, valued in a consistent manner at their fair market
value or at the sales price in accordance with authorized procedures for cashless
exercises, necessary to satisfy the minimum applicable withholding obligation on
exercise, vesting or payment. In no event shall the shares withheld exceed the
minimum whole number of shares required for tax withholding under applicable law.
The Corporation may, with the Administrator’s approval, accept one or more
promissory notes from any Eligible Person in connection with taxes required to be
withheld upon the exercise, vesting or payment of any award under this Plan;
provided that any such note shall be subject to terms and conditions established by
the Administrator and the requirements of applicable law.

8.6 Effective Date, Termination and Suspension, Amendments.

8.6.1 Effective Date. This Plan is effective as of March 5, 2004, the date of its
approval by the Board (the “Effective Date”). This Plan shall be submitted for and
subject to stockholder approval no later than twelve months after the Effective
Date. Unless earlier terminated by the Board, this Plan shall terminate at the
close of business on the day before the tenth anniversary of the Effective Date.
After the termination of this Plan either upon such stated expiration date or its
earlier termination by the Board, no additional awards may be granted under this
Plan, but previously granted awards (and the authority of the Administrator with
respect thereto, including the authority to amend such awards) shall remain
outstanding in accordance with their applicable terms and conditions and the terms
and conditions of this Plan.

8.6.2 Board Authorization. The Board may, at any time, terminate or, from time to
time, amend, modify or suspend this Plan, in whole or in part. No awards may be
granted during any period that the Board suspends this Plan.

8.6.3 Stockholder Approval. To the extent then required by applicable law or any
applicable listing agency or required under Sections 162, 422 or 424 of the Code to
preserve the intended tax consequences of this Plan, or deemed necessary or
advisable by the Board, any amendment to this Plan shall be subject to stockholder
approval.

8.6.4 Amendments to Awards. Without limiting any other express authority of the
Administrator under (but subject to) the express limits of this Plan, the
Administrator by agreement or resolution may waive conditions of or limitations on
awards to participants that the Administrator in the prior exercise of its
discretion has imposed, without the consent of a participant, and (subject to the
requirements of Sections 3.2 and 8.6.5) may make other changes to the terms and
conditions of awards. Any amendment or other action that would constitute a
repricing of an award is subject to the limitations set forth in Section 3.2(g).

8.6.5 Limitations on Amendments to Plan and Awards. No amendment, suspension or
termination of this Plan or change of or affecting any outstanding award shall,
without written consent of the participant, affect in any manner materially adverse
to the participant any rights or benefits of the participant or obligations of the
Corporation under any award granted under this Plan prior to the effective date of
such change. Changes, settlements and other actions contemplated by Section 7 shall
not be deemed to constitute changes or amendments for purposes of this Section 8.6.

	 	8.7	 	Privileges of Stock Ownership. Except as otherwise expressly authorized by the
Administrator or this Plan, a participant shall not be entitled to any privilege of
stock ownership as to any shares of Common Stock not actually delivered to and held of
record by the participant. No adjustment will be made for dividends or other rights as
a stockholder for which a record date is prior to such date of delivery.

8.8 Governing Law; Construction; Severability.

8.8.1 Choice of Law. This Plan, the awards, all documents evidencing awards and all
other related documents shall be governed by, and construed in accordance with the
laws of the State of Maryland.

8.8.2 Severability. If a court of competent jurisdiction holds any provision
invalid and unenforceable, the remaining provisions of this Plan shall continue in
effect.

	 	8.8.3	 	Plan Construction.

	 	(a)	 	Rule 16b-3. It is the intent of the
Corporation that the awards and transactions permitted by awards be
interpreted in a manner that, in the case of participants who are or
may be subject to Section 16 of the Exchange Act, qualify, to the
maximum extent compatible with the express terms of the award, for
exemption from matching liability under Rule 16b-3 promulgated under
the Exchange Act. Notwithstanding the foregoing, the Corporation shall
have no liability to any participant for Section 16 consequences of
awards or events under awards if an award or event does not so qualify.

	 	(b)	 	Section 162(m). Awards under Section
5.1.4 to persons described in Section 5.2 that are either granted or
become vested, exercisable or payable based on attainment of one or
more performance goals related to the Business Criteria, as well as
Qualifying Options and Qualifying SARs granted to persons described in
Section 5.2, that are approved by a committee composed solely of two or
more outside directors (as this requirement is applied under Section
162(m) of the Code) shall be deemed to be intended as performance-based
compensation within the meaning of Section 162(m) of the Code unless
such committee provides otherwise at the time of grant of the award.
It is the further intent of the Corporation that (to the extent the
Corporation or one of its Subsidiaries or awards under this Plan may be
or become subject to limitations on deductibility under Section 162(m)
of the Code) any such awards and any other Performance-Based Awards
under Section 5.2 that are granted to or held by a person subject to
Section 162(m) will qualify as performance-based compensation or
otherwise be exempt from deductibility limitations under Section
162(m).

	 	8.9	 	Captions. Captions and headings are given to the sections and subsections of
this Plan solely as a convenience to facilitate reference. Such headings shall not be
deemed in any way material or relevant to the construction or interpretation of this
Plan or any provision thereof.

	 	8.10	 	Stock-Based Awards in Substitution for Stock Options or Awards Granted by Other
Corporation. Awards may be granted to Eligible Persons in substitution for or in
connection with an assumption of employee stock options, SARs, restricted stock or
other stock-based awards granted by other entities to persons who are or who will
become Eligible Persons in respect of the Corporation or one of its Subsidiaries or
Affiliates, in connection with a distribution, merger or other reorganization by or
with the granting entity or an affiliated entity, or the acquisition by the Corporation
or one of its Subsidiaries or Affiliates, directly or indirectly, of all or a
substantial part of the stock or assets of the employing entity. The awards so granted
need not comply with other specific terms of this Plan, provided the awards reflect
only adjustments giving effect to the assumption or substitution consistent with the
conversion applicable to the Common Stock in the transaction and any change in the
issuer of the security. Any shares that are delivered and any awards that are granted
by, or become obligations of, the Corporation, as a result of the assumption by the
Corporation of, or in substitution for, outstanding awards previously granted by an
acquired company (or previously granted by a predecessor employer (or direct or
indirect parent thereof) in the case of persons that become employed by the Corporation
or one of its Subsidiaries or Affiliates in connection with a business or asset
acquisition or similar transaction) shall not be counted against the Share Limit or
other limits on the number of shares available for issuance under this Plan.

	 	8.11	 	Non-Exclusivity of Plan. Nothing in this Plan shall limit or be deemed to
limit the authority of the Board or the Administrator to grant awards or authorize any
other compensation, with or without reference to the Common Stock, under any other plan
or authority.

	 	8.12	 	No Corporate Action Restriction. The existence of this Plan, the award
agreements and the awards granted hereunder shall not limit, affect or restrict in any
way the right or power of the Board or the stockholders of the Corporation to make or
authorize: (a) any adjustment, recapitalization, reorganization or other change in the
capital structure or business of the Corporation or any subsidiary or affiliate, (b)
any merger, amalgamation, consolidation or change in the ownership of the Corporation
or any subsidiary or affiliate, (c) any issue of bonds, debentures, capital, preferred
or prior preference stock ahead of or affecting the capital stock (or the rights
thereof) of the Corporation or any subsidiary or affiliate, (d) any dissolution or
liquidation of the Corporation or any subsidiary or affiliate, (e) any sale or transfer
of all or any part of the assets or business of the Corporation or any subsidiary or
affiliate, or (f) any other corporate act or proceeding by the Corporation or any
subsidiary or affiliate. No participant, beneficiary or any other person shall have
any claim under any award or award agreement against any member of the Board or the
Administrator, or the Corporation or any employees, officers or agents of the
Corporation or any subsidiary or affiliate, as a result of any such action.

	 	8.13	 	Other Company Benefit and Compensation Programs. Payments and other benefits
received by a participant under an award made pursuant to this Plan shall not be deemed
a part of a participant’s compensation for purposes of the determination of benefits
under any other employee welfare or benefit plans or arrangements, if any, provided by
the Corporation or one of its Subsidiaries or Affiliates, except where the
Administrator expressly otherwise provides or authorizes in writing. Awards under this
Plan may be made in addition to, in combination with, as alternatives to or in payment
of grants, awards or commitments under any other plans or arrangements of the
Corporation or one of its Subsidiaries or Affiliates.

1

APPENDIX A

BUSINESS CRITERIA

The Business Criteria referred to in Section 5.2.2 of the Plan shall mean any one or a
combination of the following terms. These terms are used as applied under generally accepted
accounting principles or in the Corporation’s financial reporting. The Business Criteria
applicable to an award may be established with respect to the Corporation (on either a stand-alone
or consolidated basis) or any applicable Subsidiary, division, segment, or unit.

Before-Tax Net Income. “Before-Tax Net Income” means net income from operations before
reduction for income taxes with the following adjustments: (a) benefits payable under the company’s
employee incentive compensation plans for the applicable performance period to employees of that
entity (other than employees who participate in this Plan for that performance period) shall be
deducted, but any cash benefits payable under this Plan shall not be deducted unless otherwise
expressly provided by the Administrator at the time of grant of the Award; (b) any income or loss
derived from discontinued operations shall be excluded (unless the Administrator expressly provides
in the applicable award agreement that such income or loss shall not be excluded with respect to
the related award); and (c) any income or loss derived from new or acquired operations shall be
excluded (unless the Administrator expressly provides in the applicable award agreement that such
income or loss shall not be excluded with respect to the related award).

Cash Flow. “Cash Flow” means cash and cash equivalents derived from either: (a) net cash flow
from operations, or (b) net cash flow from operations, financings and investing activities, as
determined by the Administrator at the time of grant and set forth in the applicable award
agreement.

Corporate Overhead Costs. “Corporate Overhead Costs” means an entity’s allocable share of the
company’s corporate overhead shared services including human resources, accounting, legal,
information technology and compliance services.

Delinquency Rates. “Delinquency Rates” means the percentage of borrowers whose loans are
serviced by the company who have not made a payment on or before its due date.

Earnings Per Share. “Earnings Per Share” means earnings per share of Common Stock on a fully
diluted basis (giving effect to the dilutive effects of stock options, restricted stock, and other
dilutive instruments) determined by dividing: (a) net earnings, by (b) the weighted average number
of common shares and common share equivalents outstanding.

Economic Profit. “Economic Profit” means the company’s net operating profit after tax less a
capital charge. The capital charge is calculated by multiplying the company’s operating capital by
the company’s weighted average cost of capital.

Employees. “Employees” means the entity’s aggregate number of employees, or the number
performing a specific function (such as loan officers, account executives, telemarketers, etc.).

Gain on Sale of Loans. “Gain on Sale of Loans” means the total gain recognized on loans sold
through whole loan transactions or through securitizations, net of premiums paid to acquire such
loans and net of expenses associated with the sale of such loans.

Liquidity Management. “Liquidity Management” means the company’s cash and borrowing capacity
under its credit commitments.

Loan Losses. “Loan Losses” means sales of loans for less than the loan amount or sales of
REOs for less than the loan amount at the time of foreclosure plus expenses and other advances in
maintaining and selling the REO.

Loan Production Volume. “Loan Production Volume” means the aggregate volume of loans funded
during any given period or the volume of a type or category of loans funded during any given
period, as specified by the Administrator in the award agreement.

Loan Quality. “Loan Quality” means a mathematical score based on the number of loans
originated in accordance with the company’s underwriting policies and procedures, loans sold,
either individually, through bulk sales transactions, or through securitizations, at a premium
price as a percentage of total loans sold, and various other measures.

Operating Margin. “Operating Margin” means, on a percentage basis, the net execution of all
whole loan sales during the performance period, plus net interest earned on unsold inventory, less
loan acquisition costs.

Origination Expenses. “Origination Expenses” means the aggregate points and fees paid to
mortgage brokers or correspondents, commission expenses and other direct origination-related
expenses paid by an entity in connection with loan originations over a specified period.

Origination Revenues. “Origination Revenues” means the aggregate points and fees and other
revenues received by an Entity from borrowers in connection with loan originations over a specified
period.

Residual Performance. “Residual Performance” means the performance of residual interests in
the company’s loan securitization transactions as compared with the projected performance used by
the company in recording the book value of the residual interests.

Return on Assets. “Return on Assets” means the company’s consolidated net income (less any
preferred dividends), divided by the company’s average assets.

Return on Capital Invested. “Return on Capital Invested” means the company’s consolidated net
income (less any preferred dividends), divided by the company’s invested capital.

Return on Equity. “Return on Equity” means consolidated net income of the company (less any
preferred dividends), divided by the average consolidated common stockholders equity.

Return on Sales/Revenue. “Return on Sales/Revenue” means the company’s consolidated net
income (less any preferred dividends), divided by the company’s total sales or revenue, as
applicable.

Stock Price. “Stock Price” means the stock price or market value of the Common Stock of the
Corporation.

Total Stockholders’ Equity. “Total Stockholders’ Equity” means the company’s total
stockholders’ equity as shown on the company’s audited financial statements as of the first day of
a performance period, increased for equity issued during the performance period and decreased for
equity reacquired during the performance period in the manner described in the next two sentences.
The amount of any such increase shall be equal to the amount of equity issues during the
performance period multiplied by a fraction, the numerator of which is the number of days remaining
in the performance period and the denominator of which is the total number of days is 365. The
amount of any such decrease shall be equal to the amount of equity reacquired by the company during
the performance period multiplied by a fraction, the numerator of which is the number of days
remaining in the performance period and the denominator of which is the total number of days is
365.

Total Stockholder Return. “Total Stockholder Return” means, with respect to the Corporation
or other entities (if measured on a relative basis): (a) the change in the market price of its
common stock (as quoted on the principal market on which it is traded as of the beginning and
ending of the period) plus dividends and other distributions paid, divided by (b) the beginning
quoted market price for the common stock, all of which is adjusted for any changes in equity
structure, including but not limited to stock splits and stock dividends.

2

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