Document:

Exhibit

FIRST AMENDMENT TO FINANCING AGREEMENT
This FIRST AMENDMENT TO FINANCING AGREEMENT (this “Amendment”) is made and entered into as of August 1, 2019 by and among EF SPV, Ltd., an exempted company incorporated with limited liability under the laws of the Cayman Islands (the “Borrower”), Elevate Credit, Inc., a Delaware corporation (“Elevate Credit”) as a Guarantor, the other Guarantors party hereto (such Guarantors, collectively with Elevate Credit and the Borrower, the “Credit Parties”) and Victory Park Management, LLC, as administrative agent and collateral agent for the Lenders and the Holders (in such capacity, the “Agent”).  Capitalized terms used and not otherwise defined herein shall have the respective meanings ascribed to them in the Financing Agreement or if not defined therein, in the Pledge and Security Agreement.
WHEREAS, the Guarantors, Elevate Credit, the Borrower, the Lenders and the Agent are parties to that certain Financing Agreement dated as of February 7, 2019 (as amended, restated, supplemented or otherwise modified from time to time, the “Financing Agreement”); and
WHEREAS, the Credit Parties and the Agent desire to amend certain provisions of the Financing Agreement on the terms set forth herein.
NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1.Amendments to Financing Agreement.  Subject to the terms and conditions of this Amendment, including the satisfaction of the conditions precedent set forth in Section 2 hereof, the Financing Agreement is amended as follows:
(a)    The definition of Consumer Loan in Section 1.1 of the Financing Agreement is amended and restated in its entirety to read as follows (changes are in italics):
“Consumer Loans” means unsecured consumer loans marked as “EF SPV, Ltd.” on the monthly financial statements provided to Agent pursuant to Section 8.2(a) that are originated by FinWise Bank and in which a 96.0% participation interest, or such other percentage as mutually agreed upon among FinWise Bank, Borrower and Agent, is sold to Borrower.  Consumer Loans will be only be issued to individual residents of the United States of America and in accordance with the Program Guidelines. 
2.    Conditions Precedent.  This Amendment shall become effective upon the satisfaction in full of each of the following conditions:
(a)    the Borrower shall have executed and delivered, or caused to be delivered, to the Agent evidence satisfactory to the Agent that the Borrower shall pay to the Agent on the date hereof all fees and other amounts due and owing thereon under this Amendment and the other Transaction Documents;

(b)    the representations and warranties of the Credit Parties contained herein and in the Financing Agreement shall be true and correct except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall be true and correct as of such earlier date; and
(c)    no Event of Default shall have occurred and be continuing or would result from the transaction contemplated hereby.
3.    General Release.  In consideration of the Agent’s agreements contained in this Amendment, each Credit Party hereby irrevocably releases and forever discharge the Lenders, the Holders and the Agent and their affiliates, subsidiaries, successors, assigns, directors, officers, employees, agents, consultants, attorneys, managers, investment managers, principles and portfolio companies (each, a “Released Person”) of and from any and all claims, suits, actions, investigations, proceedings or demands, whether based in contract, tort, implied or express warranty, strict liability, criminal or civil statute or common law of any kind or character, known or unknown, which such Credit Party ever had or now has against Agent, any Lender, any Holder or any other Released Person which relates, directly or indirectly, to any acts or omissions of Agent, any Lender, any Holder or any other Released Person relating to the Financing Agreement or any other Transaction Document on or prior to the date hereof.
4.    Representations and Warranties of the Credit Parties.  To induce the Agent to execute and deliver this Amendment, each Credit Party represents, warrants and covenants that:
(a)    The execution, delivery and performance by each Credit Party of this Amendment and all documents and instruments delivered in connection herewith have been duly authorized by all necessary action required on its part, and this Amendment and all documents and instruments delivered in connection herewith are legal, valid and binding obligations of such Credit Party enforceable against such Credit Party in accordance with its terms except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. 
(b)    Each of the representations and warranties set forth in the Transaction Documents is true and correct on and as of the date hereof as if made on the date hereof, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall be true and correct as of such earlier date, and each of the agreements and covenants in the Transaction Documents is hereby reaffirmed with the same force and effect as if each were separately stated herein and made as of the date hereof.
(c)    Neither the execution, delivery and performance of this Amendment nor the consummation of the transactions contemplated hereby or thereby does or shall (i) result in a violation of any Credit Party’s certificate of incorporation, certificate of formation, bylaws, limited liability company agreement or other governing documents, or the terms of any Capital Stock or other Equity Interests of any Credit Party; (ii) conflict with, or constitute 

a breach or default (or an event which, with notice or lapse of time or both, would become a breach or default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which any Credit Party is a party; (iii) result in any “price reset” or other material change in or other modification to the terms of any Indebtedness, Equity Interests or other securities of any Credit Party; or (iv) result in a violation of any law, rule, regulation, order, judgment or decree.
(d)    No Event of Default has occurred or is continuing under this Amendment or any other Transaction Document.
5.    Ratification of Liability.  Each Credit Party, as debtor, grantor, pledgor, guarantor, assignor, or in other similar capacity in which such party grants liens or security interests in its properties or otherwise acts as an accommodation party or guarantor, as the case may be, under the Transaction Documents, hereby ratifies and reaffirms all of its payment and performance obligations and obligations to indemnify, contingent or otherwise, under each Transaction Document to which such party is a party, and each such party hereby ratifies and reaffirms its grant of liens on or security interests in its properties pursuant to such Transaction Documents to which it is a party as security for the obligations under or with respect to the Financing Agreement, the Notes and the other Transaction Documents, and confirms and agrees that such liens and security interests hereafter secure all of the obligations under the Transaction Documents, including, without limitation, all additional obligations hereafter arising or incurred pursuant to or in connection with this Amendment or any Transaction Document.  Each Credit Party further agrees and reaffirms that the Transaction Documents to which it is a party now apply to all obligations as modified hereby (including, without limitation, all additional obligations hereafter arising or incurred pursuant to or in connection with this Amendment or any Transaction Document).  Each such party (a) further acknowledges receipt of a copy of this Amendment and all other agreements, documents, and instruments executed or delivered in connection herewith, (b) consents to the terms and conditions of same, and (c) agrees and acknowledges that each of the Transaction Documents, as modified hereby, remains in full force and effect and is hereby ratified and confirmed.  Except as expressly provided herein, the execution of this Amendment shall not operate as a waiver of any right, power or remedy of any Lender, any Holder or the Agent, nor constitute a waiver of any provision of any of the Transaction Documents nor constitute a novation of any of the obligations under the Transaction Documents. 
6.    Reference to and Effect Upon the Transaction Documents.
(a)    Except as specifically amended hereby, all terms, conditions, covenants, representations and warranties contained in the Transaction Documents, and all rights of the Lenders, the Holders and the Agent and all of the obligations under the Transaction Documents, shall remain in full force and effect, including, but not limited to, the right of first refusal in favor of Agent and its designees set forth in Section 8.19 of the Financing Agreement.  Each Credit Party hereby confirms that the Transaction Documents are in full force and effect, and that no Credit Party has any right of setoff, recoupment or other offset or any defense, claim or counterclaim with respect to any Transaction Document or the Credit Parties’ obligations thereunder.

(b)    Except as expressly set forth herein, the execution, delivery and effectiveness of this Amendment and any consents or waivers set forth herein shall not directly or indirectly: (i) create any obligation to make any further loans or to defer any enforcement action after the occurrence of any Event of Default; (ii) constitute a consent or waiver of any past, present or future violations of any Transaction Document; (iii) amend, modify or operate as a waiver of any provision of any Transaction Document or any right, power or remedy of any Lender, any Holder or the Agent or (iv) constitute a course of dealing or other basis for altering any obligations under the Transaction Documents or any other contract or instrument.  Except as expressly set forth herein, each Lender, each Holder and the Agent reserve all of their rights, powers, and remedies under the Transaction Documents and applicable law. All of the provisions of the Transaction Documents, including, without limitation, the time of the essence provisions, are hereby reiterated, and if ever waived previously, are hereby reinstated.
(c)    From and after the date hereof, (i) the term “Agreement” in the Financing Agreement, and all references to the Financing Agreement in any Transaction Document shall mean the Financing Agreement, as amended by this Amendment and (ii) the term “Transaction Documents” defined in the Financing Agreement shall include, without limitation, this Amendment and any agreements, instruments and other documents executed or delivered in connection herewith.
7.    Costs and Expenses.  In addition to, and not in lieu of, the terms of the Transaction Documents relating to the reimbursement of the Lenders’, the Holders’ and the Agent’s fees and expenses, the Credit Parties shall reimburse each Lender, each Holder and the Agent, as the case may be, promptly on demand for all fees, costs, charges and expenses, including the fees, costs and expenses of counsel and other expenses incurred in connection with this Amendment.
8.    Governing Law; Jurisdiction.  All questions concerning the construction, validity, enforcement and interpretation of this Amendment shall be governed by the internal laws of the State of New York, without giving effect to its conflicts of law principles other than §5-1401 and 5-1402 of the New York General Obligations Law. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in New York, New York for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.  Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Amendment and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AMENDMENT OR ANY TRANSACTIONS CONTEMPLATED HEREBY.

9.    No Strict Construction.  The language used in this Amendment will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.
10.    Counterparts.  This Amendment may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.  Signatures of the parties hereto transmitted by facsimile or by electronic media or similar means shall be deemed to be their original signature for all purposes.
11.    Severability.  The invalidity, illegality, or unenforceability of any provision in or obligation under this Amendment in any jurisdiction shall not affect or impair the validity, legality, or enforceability of the remaining provisions or obligations under this Amendment or of such provision or obligation in any other jurisdiction.  If feasible, any such offending provision shall be deemed modified to be within the limits of enforceability or validity; provided that if the offending provision cannot be so modified, it shall be stricken and all other provisions of this Amendment in all other respects shall remain valid and enforceable.
12.    Further Assurances.  The parties hereto shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Amendment and the consummation of the transactions contemplated hereby.
13.    Headings.  The headings of this Amendment are for convenience of reference and shall not form part of, or affect the interpretation of, this Amendment.
14.    Limited Recourse and Non-Petition.
(a)    The Secured Parties shall have recourse only to the proceeds of the realization of Collateral once the proceeds have been applied in accordance with the terms of the Pledge and Security Agreement (the "Net Proceeds").  If the Net Proceeds are insufficient to discharge all payments which, but for the effect of this clause, would then be due (the "Amounts Due"), the obligation of the Borrower shall be limited to the amounts available from the Net Proceeds and no debt shall be owed to the Secured Parties by the Borrower for any further sum. The Secured Parties shall not take any action or commence any proceedings against the Borrower to recover any amounts due and payable by the Borrower under the Financing Agreement except as expressly permitted by the provisions of the Financing Agreement.  The Secured Parties shall not take any action or commence any proceedings or petition a court for the liquidation of the Borrower, nor enter into any arrangement, reorganization or insolvency proceedings in relation to the Borrower whether under the laws of the Cayman Islands or other applicable bankruptcy laws until after the later to occur of the payment of all of the Amounts Due or the application of all of the Net Proceeds.
(b)    The Secured Parties hereby acknowledge and agree that the Borrower’s obligations under the Transaction Documents are solely the corporate obligations of the 

Borrower, and that the Secured Parties shall not have any recourse against any of the directors, officers or employees of the Borrower for any claims, losses, damages, liabilities, indemnities or other obligations whatsoever in connection with any transactions contemplated by the Transaction Documents.
[Remainder of Page Intentionally Left Blank; Signature Pages Follows]

IN WITNESS WHEREOF, each party has caused its signature page to this Amendment to be duly executed as of the date first written above.

	
		
	BORROWER:

	 
	 

	EF SPV, LTD., an exempted company incorporated with limited liability under the laws of the Cayman Islands, as Borrower

	 
	 

	By:
	/s/ Andrew Dean

	 
	Name: Andrew Dean

	 
	Title: Director

	
		
	GUARANTORS:

	 
	 

	ELEVATE CREDIT, INC., a Delaware corporation

	 
	 

	By:
	 

	 
	Name: 

	 
	Title: 

[SIGNATURE PAGES CONTINUE]

IN WITNESS WHEREOF, each party has caused its signature page to this Amendment to be duly executed as of the date first written above.

	
		
	BORROWER:

	 
	 

	EF SPV, LTD., an exempted company incorporated with limited liability under the laws of the Cayman Islands, as Borrower

	 
	 

	By:
	 

	 
	Name: 

	 
	Title:

	
		
	GUARANTORS:

	 
	 

	ELEVATE CREDIT, INC., a Delaware corporation

	 
	 

	By:
	/s/ Chris Lutes

	 
	Name: Chris Lutes

	 
	Title: CFO

[SIGNATURE PAGES CONTINUE]

	
		
	GUARANTORS (CONT.), EACH AS AN "ELEVATE CREDIT SUBSIDAIRY":

	 
	 

	ELASTIC FINANCIAL, LLC

	ELEVATE DECISION SCIENCES, LLC

	RISE CREDIT, LLC

	FINANCIAL EDUCATION, LLC

	RISE SPV, LLC

	EF FINANCIAL, LLC

	 
	 

	By:
	Elevate Credit, Inc., as Sole Member of each of the above-named entities

	By:
	/s/ Chris Lutes

	 
	Name:  Chris Lutes

	 
	Title: CFO

	
		
	RISE CREDIT SERVICE OF OHIO, LLC

	RISE CREDIT SERVICE OF TEXAS, LLC

	 
	 

	By:
	Rise Credit, LLC, as Sole Member of each of the above-named entities

	By:
	Elevate Credit, Inc. as its Sole Member

	By:
	/s/ Chris Lutes

	 
	Name:  Chris Lutes

	 
	Title: CFO

[SIGNATURE PAGES CONTINUE]

RISE FINANCIAL, LLC
RISE CREDIT OF ALABAMA, LLC
RISE CREDIT OF ARIZONA, LLC
RISE CREDIT OF CALIFORNIA, LLC
RISE CREDIT OF COLORADO, LLC
RISE CREDIT OF DELAWARE, LLC
RISE CREDIT OF FLORIDA, LLC
RISE CREDIT OF GEORGIA, LLC
RISE CREDIT OF IDAHO, LLC
RISE CREDIT OF ILLINOIS, LLC
RISE CREDIT OF KANSAS, LLC
RISE CREDIT OF LOUISIANA, LLC
RISE CREDIT OF MISSISSIPPI, LLC
RISE CREDIT OF MISSOURI, LLC
RISE CREDIT OF NEBRASKA, LLC
RISE CREDIT OF NEVADA, LLC
RISE CREDIT OF NORTH DAKOTA, LLC
RISE CREDIT OF OKLAHOMA, LLC
RISE CREDIT OF SOUTH CAROLINA, LLC
RISE CREDIT OF SOUTH DAKOTA, LLC
RISE CREDIT OF TEXAS, LLC
RISE CREDIT OF TENNESSEE, LLC
RISE CREDIT OF UTAH, LLC
RISE CREDIT OF VIRGINIA, LLC
   
	
		
	By:
	Rise SPV, LLC, as Sole Member of each of the above-named entities

	By:
	Elevate Credit, Inc. as its Sole Member

	By:
	/s/ Chris Lutes

	 
	Name:  Chris Lutes

	 
	Title: CFO

 
[SIGNATURE PAGES CONTINUE]

	
		
	ELASTIC LOUISVILLE, LLC

	ELEVATE ADMIN, LLC

	ELASTIC MARKETING, LLC

	 
	 

	By:
	Elastic Financial, LLC, as Sole Member of each of the above-named entities

	By:
	Elevate Credit, Inc. as its Sole Member

	By:
	/s/ Chris Lutes

	 
	Name:  Chris Lutes

	 
	Title: CFO

 [SIGNATURE PAGES CONTINUE]

	
		
	AGENT:

	VICTORY PARK MANAGEMENT, LLC

	 
	 

	By:
	/s/ Scott R. Zemnick

	 
	Name:  Scott R. Zemnick

	 
	Title: Authorized Signatory

	
		
	LENDERS:

	 

	VPC INVESTOR FUND B, LLC

	 
	 

	By:
	VPC Investor Fund GP B, L.P.

	Its:
	Managing Member

	By:
	VPC Investor Fund UGP B, LLC

	Its:
	General Partner

	By:
	/s/ Scott R. Zemnick

	 
	Name:  Scott R. Zemnick

	 
	Title: General Counsel

	
		
	 

	VPC SPECIAL OPPORTUNITIES FUND III ONSHORE, L.P.

	 
	 

	By:
	VPC Special Opportunities Fund III GP, L.P.

	Its:
	General Partner

	By:
	VPC Special Opportunities Fund III UGP, LLC

	Its:
	General Partner

	By:
	/s/ Scott R. Zemnick

	 
	Name:  Scott R. Zemnick

	 
	Title: General Counsel

[SIGNATURE PAGES CONTINUE]

	
		
	LENDERS (CON'T):

	 

	VPC ONSHORE SPECIALTY FINANCE FUND II, L.P.

	 
	 

	By:
	VPC Specialty Finance Fund GP II, L.P.

	Its:
	General Partner

	By:
	VPC Specialty Finance Fund UGP II, LLC

	Its:
	General Partner

	By:
	/s/ Scott R. Zemnick

	 
	Name:  Scott R. Zemnick

	 
	Title: General Counsel

	
		
	 

	VPC INVESTOR FUND B II, LLC

	 
	 

	By:
	VPC Investor Fund GP B II, L.P.

	Its:
	Managing Member

	By:
	VPC Investor Fund UGP B II, LLC

	Its:
	General Partner

	By:
	/s/ Scott R. Zemnick

	 
	Name:  Scott R. Zemnick

	 
	Title: General Counsel

	
		
	 

	VPC INVESTOR FUND C, L.P.

	 
	 

	By:
	VPC Investor Fund GP C, L.P.

	Its:
	General Partner

	By:
	VPC Investor Fund UGP C, LLC

	Its:
	General Partner

	By:
	/s/ Scott R. Zemnick

	 
	Name:  Scott R. Zemnick

	 
	Title: General Counsel

[SIGNATURE PAGES CONTINUE]

	
		
	LENDERS (CON'T):

	 

	VPC INVESTOR FUND G-1,L.P.

	 
	 

	By:
	VPC Investor Fund GP G, L.P.

	Its:
	General Partner

	By:
	VPC Investor Fund UGP G, LLC

	Its:
	General Partner

	By:
	/s/ Scott R. Zemnick

	 
	Name:  Scott R. Zemnick

	 
	Title: General Counsel

	
		
	 

	VPC SPECIALTY LENDING FUND (NE), LTD.

	 
	 

	By:
	Victory Park Capital Advisors, LLC

	Its:
	Investment Manager (pursuant to powers of attorney granted in the Investment Management Agreement)

	By:
	/s/ Scott R. Zemnick

	 
	Name:  Scott R. Zemnick

	 
	Title: General Counsel

[SIGNATURE PAGES CONTINUE]

	
		
	 

	VPC SPECIALTY LENDING INVESTMENTS INTERMEDIATE, L.P.

	 
	 

	By:
	VPC Specialty Lending Investments Intermediate GP, LLC

	Its:
	General Partner

	By:
	Victory Park Management

	Its:
	Manager

	By:
	/s/ Scott R. Zemnick

	 
	Name:  Scott R. Zemnick

	 
	Title: Manager

	
		
	 

	VPC OFFSHORE UNLEVERAGED PRIVATE DEBT FUND, L.P.

	 
	 

	By:
	VPC Private Debt Fund GP, L.P.

	Its:
	General Partner

	By:
	VPC UGP, LLC

	Its:
	General Partner

	By:
	/s/ Scott R. Zemnick

	 
	Name:  Scott R. Zemnick

	 
	Title: General CounselExhibit

RESIGNATION AND RELEASE OF CLAIMS AGREEMENT
This Resignation and Release of Claims Agreement (this “Agreement”) is entered into by and between Elevate Credit Service, LLC, a Delaware limited liability company (“Employer”) and Kenneth E. Rees (“Executive”). Executive and Employer are sometimes referred to, individually, as a “Party” and, collectively, as the “Parties.”
1.Termination and Resignation.
(a)    Executive’s last day as an employee of Employer and as an officer of Employer, Elevate Credit, Inc. ("Parent") and each of Parent's other direct and indirect affiliates and subsidiaries (collectively, the "Elevate Group") shall be July 31, 2019 (the “Termination Date”), and Executive hereby resigns as (i) a director, member and/or manager, as applicable, of any other Elevate Group entity except for Parent effective as of the Termination Date and (ii) Chairman of the Board of Directors of Parent effective as of July 25, 2019. For purposes of clarification, Executive shall have the opportunity to continue to serve on the Board of Directors of Parent.
(b)    That certain Employment, Confidentiality and Non-Compete Agreement, dated as of May 1, 2014, as amended by that certain First Amendment to Employment, Confidentiality and Non-Compete Agreement, dated as of December 11, 2015, further amended by that certain Second Amendment to Employment, Confidentiality and Non-Compete Agreement, dated as of March 1, 2017, and further amended by that certain Third Amendment to Employment, Confidentiality and Non-Compete Agreement, dated as of January 24, 2019 (collectively, the "Employment Agreement"), is terminated effective as of the Resignation Agreement; provided that Sections 3 (Business Interests and Obligations), 4 (Protective Covenants), 9 (Governing Law and Venue) and 11 (Arbitration) thereof shall remain in full force and effect as set forth therein; provided, however, that the defined term “Competing Business” within the Employment Agreement shall not include any (i) business(es) involving loan or credit products that are offered, marketed or sold on terms that are less than sixty percent (60%) effective annual percentage rate or (ii) other work that Employer agrees is not encompassed by the term Competing Business, which agreement by Employer shall not be unreasonably withheld.
(c)    Executive’s eligibility for coverage under the Elevate Group’s benefit plans, policies and programs (including, without limitation, life insurance, short term disability and long term disability benefits) ends on the Termination Date except for Executive’s current health insurance which shall continue in force according to its terms and conditions through the Termination Date and Executive’s eligibility for continuation of group health coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”).
(d)    That certain Director Indemnification Agreement, dated May 1, 2014, entered into by and between Executive and Employer as amended by that certain First Amendment to Director Indemnification Agreement, dated June 20, 2016 (collectively, the "Indemnification Agreement"), shall remain in full force and effect following the Termination Date in accordance with the terms thereof.
(e)    Information pertaining to Executive’s rights to continue group health coverage will be mailed to Executive in a separate letter. If Executive chooses to participate in COBRA, then Executive must complete the COBRA election form. EXECUTIVE’S FAILURE TO ENROLL IN AND PAY FOR COBRA BENEFITS IN A TIMELY MANNER WILL RESULT IN A LAPSE OF COVERAGE THAT CANNOT BE REINSTATED.

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15651.001 4827-9373-6347.7

2.    Final Paycheck and Expenses.
(a)    On or before the Termination Date, Employer will pay to Executive all accrued but unpaid wages and accrued paid time off earned through the Termination Date and Executive acknowledges receipt of the same. All amounts paid pursuant to this Section 2 shall be subject to standard payroll deductions and withholdings. Executive is entitled to these payments regardless of whether Executive executes this Agreement.
(b)    Employer shall promptly reimburse Executive for all as yet unreimbursed business expenses reimbursable under Employer’s expense reimbursement policy, provided Executive submits the expenses and supporting documentation to Employer in accordance with Employer’s expense reimbursement policies within thirty (30) calendar days from the Termination Date.
3.    Severance Benefits. In exchange for Executive’s release of claims in Section 7 and the other promises herein, and provided Executive (i) executes and returns this Agreement to Employer on or before August 16, 2019 and does not revoke this Agreement during the Revocation Period (defined below) and (ii) has not breached this Agreement, Employer shall provide Executive (or to Executive’s estate in the event of Executive’s death), subject to Section 6 and standard payroll deductions and withholdings, with the following consideration:
(a)    severance pay equal to one million two hundred sixty thousand dollars ($1,260,000) payable as follows: (i) six hundred thirty thousand dollars ($630,000) in a lump sum between sixty (60) and ninety (90) days following the Effective Date; and (ii) the remaining six hundred thirty thousand dollars ($630,000) in equal bi-weekly installments in accordance with Employer’s standard payroll practices commencing with the first regular payroll that occurs on or following the sixtieth (60th) day after the Termination Date;
(b)    a bonus payment equal to three hundred fifteen thousand dollars ($315,000.00) payable in a lump sum payment between sixty (60) and ninety (90) days following the Effective Date; and
(c)    a net amount equal to twenty-four (24) times the monthly premiums that Executive would be required to pay if Executive and Executive’s eligible dependents then participating in Employer’s group health insurance plan elected to continue their current level of healthcare coverage pursuant to the provisions of COBRA regardless of whether such election is made (the “Health Payment”). The Health Payment shall be paid in lump-sum with Employer’s first regular payroll that occurs on or following the sixtieth (60th ) day after the Termination Date.
4.    Other Employer Agreements. Employer agrees that in connection with the writing and publication of the Tightrope book project that Employer shall:
(a)    Pay the contractual amounts owed to Ms. Joanne Cleaver pursuant to the terms of her contract with Employer;
(b)    Continue to allow Executive reasonable access to the Center for New Middle Class data and associated consumer research; and
(c)    Use its best efforts to provide Executive with the data he requires to complete the book provided, however, that Employer shall not be required to spend more than $25,000.

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15651.001 4827-9373-6347.7

Notwithstanding anything to the foregoing, Employer shall have a reasonable opportunity to review the book and, in consultation with Executive, make edits thereto prior to publication. Further, such book shall only be published after the Parties mutually agree on the timing of such publication.
5.    Transition Cooperation.
(a)    Executive shall reasonably cooperate with the members of the Elevate Group in their defenses of or participation in any charge, complaint, investigation or other action which has been or may be filed against any member of the Elevate Group or against Executive for which Executive is entitled to be indemnified.
(b)    Executive shall be available to respond to a reasonable number of questions to assist in the transition to a new Chief Executive Officer of Parent.
6.    Section 409A. It is intended that all of the severance benefits and other payments payable under this Agreement satisfy, to the greatest extent possible, the requirements of Section 409A of the Internal Revenue Code (“Section 409A”) and will be construed in a manner that complies with Section 409A. Executive is a “specified employee” for purposes of Code Section 409A(a)(2)(B)(i). Accordingly, notwithstanding any provision to the contrary in this Agreement, to the extent any of the payments upon termination of Executive’s employment set forth herein and/or under any other agreement with Employer are deemed to be “deferred compensation”, then to the extent delayed commencement of any portion of such payments is required in order to avoid a prohibited distribution under Code Section 409A(a)(2)(B)(i) and the related adverse taxation under Section 409A, such payments shall not be provided to Executive prior to the earliest of (a) the expiration of the six-month and one day period measured from the Termination Date, (b) the date of Executive’s death or (c) such earlier date as permitted under Section 409A without the imposition of adverse taxation. Upon the first business day following the expiration of such applicable Code Section 409A(a)(2)(B)(i) period, all payments deferred pursuant to this Section 6 shall be paid as otherwise provided herein or in the applicable agreement. No interest shall be due on any amounts so deferred. No severance payments will be provided prior to the Effective Date, regardless of when the Agreement actually becomes effective.
7.    Release of Claims. Subject to Section 19, Executive does hereby generally and completely release each of the entities which comprise the Elevate Group and each of their respective directors, officers, employees, members, managers, shareholders, partners, agents, attorneys, predecessors, successors, insurers, affiliates, and assigns (collectively, the “Employer Released Parties”) from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to Executive signing this Agreement. This general release includes, but is not limited to (the “Released Claims”): (a) all claims arising out of or in any way related to Executive’s employment with Employer, the Employment Agreement or the termination of that employment; (b) all claims related to Executive’s compensation or benefits from the Employer including, but not limited to, salary, bonuses, commissions, vacation pay, equity compensation, housing reimbursements, travel expense benefit, expense reimbursements, severance pay (other than the consideration set forth in Section 3), or fringe benefits; (c) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (d) all tort claims, including, but not limited to, claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (e) all federal, state, and local statutory claims including, but not limited to, claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age 

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Discrimination in Employment Act of 1967 including the Older Workers Benefit Protection Act (“ADEA”), the Rehabilitation Act of 1973, the Equal Pay Act of 1963, as amended, the Fair Labor Standards Act, the Family and Medical Leave Act, the Employee Retirement Income Security Act, the Worker Adjustment and Retraining Notification Act of 1988, the Texas Commission of Human Rights Act, the Texas Labor Code and all municipal, state and federal statutory and common law relating to discrimination, wrongful discharge, breach of contract, defamation and all other causes of action or claims arising out of Executive's employment with Employer and termination thereof.
8.    Excluded Claims. Notwithstanding the foregoing, the following are not included in the Released Claims (the “Excluded Claims”): (a) any claims for breach of this Agreement arising after the date on which Executive signs this Agreement; (b) all rights Executive may have in respect of stock rights or ownership interest in Parent and all agreements relating to any of the stock rights or ownership interest in Parent; (c) all claims for or rights to indemnification pursuant to charter documents of any of the entities which comprise the Elevate Group, the Indemnification Agreement or under any insurance policy maintained by any member of the Elevate Group, or under applicable law; and (d) all claims which cannot be waived as a matter of law. Executive hereby represents and warrants that, other than the Excluded Claims, Executive is not aware of any claims that Executive has or might have against any of the parties released above that are not included in the Released Claims.
9.    Executive Agreements and Effective Date. Executive understands and agrees that:
(a)    This Agreement is a binding contract that shall bar all litigation, claims and demands of every kind between Executive and the Employer Released Parties, and that all such claims are fully and finally settled, compromised and released.
(b)    The consideration for signing this Agreement, as set forth in Section 3, consists of an amount in excess of that to which Executive is entitled under the Employer’s policies or practices or under the Employment Agreement upon a voluntary resignation.
(c)    Executive is aware of the contents and significance of all the provisions of this Agreement and Executive has decided to enter into it voluntarily.
(d)    Executive has been advised of Executive’s right to have this Agreement reviewed by counsel prior to signing it and acknowledges the opportunity to consult with counsel.
(e)    Executive has been given a full twenty-one (21) calendar days within which to consider this Agreement before executing it.
(f)    Executive has a full seven (7) calendar days after signing this Agreement (the “Revocation Period”) to revoke this Agreement. Executive’s revocation of this Agreement must be in writing and delivered to Paul J. Tauber, either by mail or other courier service, at Coblentz Patch Duffy & Bass LLP, One Montgomery Street, Suite 3000, San Francisco, California 94104, or electronically to his email address at pjt@cpdb.com within the Revocation Period. If delivered by mail, the revocation must be postmarked in the Revocation Period. Provided that Executive has not revoked this Agreement within the Revocation Period, this Agreement shall be binding and effective eight (8) calendar days after execution of this Agreement by Executive (“Effective Date”).
10.    No Admission of Liability. This Agreement settles, compromises, and resolves disputes and potential disputes between the Parties. This Agreement, and compliance with this Agreement, shall 

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not constitute nor be construed as an admission by either of the Parties of any wrongdoing or liability of any kind or an admission by them of any violation of the rights of the other Party or any other person, law, statute, duty or contract by either of the Parties, any member of the Elevate Group, or any of their respective employees, representatives or agents.
11.    Waiver of Unknown Claims. Without derogating from the Texas choice of law provision, Executive acknowledges that Executive has been advised of and is familiar with the provisions of California Civil Code Section 1542, which provides as follows:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, AND THAT, IF KNOWN BY HIM OR HER WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASING PARTY.
Being aware of said code section, Executive hereby expressly waives any rights Executive may have thereunder, as well as under any other statutes or common law principles of similar effect, to the extent of Executive’s release.
12.    If Facts are Different. Executive may hereafter discover facts different from or in addition to those Executive now believes to be true in respect to the claims, demands, damages, debts, liabilities, actions, or causes of action herein released, and hereby agrees that this release shall be and remain in effect in all respects as a complete, general release as to the matters released, notwithstanding any such different or additional facts.
13.    Covenant Not to Sue. Executive expressly agrees and covenants not to bring or voluntarily participate in any proceedings against the Employer Released Parties in any court or administrative agency or any other forum whatsoever by reason of any claim, liability or cause of action released herein. Executive understands and agrees that all such claims, liabilities or causes of action (including claims for related attorneys’ fees and costs), are forever barred by this Agreement, regardless of the forum in which they may be brought or heard.
14.    Parties Costs and Fees. Employer shall reimburse Executive for up to $20,000.00 in attorneys’ fees and costs incurred in connection with the negotiation of this Agreement.
15.    No Assignment of Claims. Executive represents and warrants that Executive has not previously assigned the claims released herein to another, and is the sole owner of the claims released herein.
16.    Confidentiality. Executive shall not use or disclose Confidential Information (as hereinafter defined) except with the prior consent of the Employer or pursuant to process or requirements of law, provided that Executive shall have notified the Employer promptly upon notice to Executive of such process or requirements (including what type of Confidential Information Executive may be required to disclose) and, to the extent reasonably possible, shall have afforded the Employer the opportunity to seek judicial or other protective relief from the disclosure sought through such process or requirements. As used herein, “Confidential Information” means, collectively, all Trade Secrets, Proprietary Information, Know-How and Confidential Information, each as defined in the Employment Agreement.

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17.    Non-Disparagement. Executive shall not disparage, criticize or defame Employer, any Employer Released Parties or any of their respective businesses or services, either publicly or privately. Executive’s obligations under this Section 17 include, but are not limited to, refraining from publishing by any means any disparaging remarks to any person, entity, employer, prospective employer, business partner, or potential business partner, including on any blog, online social network or any other website, whether the identity of the person making such disparaging remarks is revealed or such comments are made anonymously. Similarly, Employer shall not disparage, criticize or defame Executive, either publically or privately.
18.    Announcement of Separation. Employer agrees that the press release regarding Executive’s separation from Employer will be in substantially the form attached hereto as Exhibit A. Executive shall also be allowed to review and have input into any other public announcement or disclosure regarding his separation from employment prior to its publication.
19.    Protected Rights.
(a)    The Parties acknowledge and agree that, notwithstanding any of the terms set forth herein, this Agreement does not limit Executive’s ability to file a charge or complaint with any other federal, state or local governmental agency or commission (“Government Agencies”). The Parties further understand that this Agreement does not limit Executive’s ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Employer. This Agreement does not limit Executive’s right to receive an award for information provided to any Government Agencies.
(b)    The Parties further acknowledge and agree that notwithstanding any of the terms set forth herein, the U.S. Defend Trade Secrets Act of 2016 (the “DTSA”) provides that an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law, or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. In addition, the DTSA provides that an individual who files a lawsuit for retaliation by an employer, or counterparty in the case of an independent contractor, for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.
20.    Return of Property. On or before the Termination Date, Executive shall return to Employer all files, memoranda, records, and other documents, and any other physical or personal property which are the property of Employer and which the Executive had in Executive’s possession, custody or control on the Termination Date. Notwithstanding the generality of the foregoing, the Executive may retain copies of all signed agreements between Executive and Employer and of Executive’s signed personnel documents.
21.    No Representations. Each Party represents that it has carefully read and understands the scope and effect of the provisions of this Agreement. Neither Party has relied upon any representations or statements made by the other Party which are not specifically set forth in this Agreement.

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22.    Severability. In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision.
23.    Entire Agreement. This Agreement represents the entire agreement and understanding between the Parties concerning the subject matter addressed herein, including Executive’s employment with and resignation from the Employer, and supersedes and replaces any and all prior agreements and understandings regarding that subject matter.
24.    No Oral Modification. This Agreement may only be amended in writing signed by both Parties.
25.    Governing Law. This Agreement shall be governed by the laws of the State of Texas without regard to conflicts of law provisions thereof.
26.    Signatures. This Agreement may be executed in counterparts, and each counterpart shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned. Signatures received by facsimile, PDF file and other electronic format shall be deemed original signatures.
<signature page follows>

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IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.

ELEVATE CREDIT SERVICE, LLC,    EXECUTIVE
a Delaware liability company

	
				
	By: 
	/s/ Christopher Lutes
	 
	/s/ Kenneth E. Rees

	 
	Chris Lutes, Chief Financial Officer
	 
	Kenneth E. Rees

	 
	 
	 
	 

	Dated:
	July 25, 2019
	 
	Date: July 25, 2019

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EXHIBIT A

Announcement Regarding Separation

<attached as a separate document>

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