Document:

EX-10.1

Ex. 10.1

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of October 30, 2009, by
and among Dollar Financial Group, Inc., a New York corporation (together with its successors and
assigns, “DFG”), Dollar Financial Corp., a Delaware corporation (together with its successors and
assigns, “DFC,” and together with DFG, the “Company”) and Jeffrey A. Weiss (the “Executive”) (the
Company and the Executive, each a “Party” and collectively, the “Parties”).

WHEREAS, the Company and the Executive are parties to a certain employment agreement, dated as
of October 5, 2007, as amended December 18, 2008 (the “Prior Agreement”); and

WHEREAS, the Company desires to continue to employ the Executive, and the Executive desires to
accept employment by the Company upon the terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter set
forth, and intending to be legally bound hereby, the parties hereby agree as follows:

1. Representations and Warranties. The Executive represents and warrants to the Company that
the Executive is not bound by any restrictive covenants with any entity other than the Company or
its affiliates which would in any way prevent the Executive’s acceptance of continued employment
hereunder. Both DFG and DFC each represent and warrant to the Executive that (a) the execution,
delivery and performance of this Agreement by it has been fully and validly authorized by all
necessary corporate action, (b) the officer signing this Agreement on its behalf is duly authorized
to do so, (c) the execution, delivery and performance of this Agreement does not violate any
applicable law, regulation, order, judgment or decree or any agreement, plan or corporate
governance document to which it is a party or by which it is bound and (d) upon execution and
delivery of this Agreement by the Parties, it shall be a valid and binding obligation of DFG or
DFC, as the case may be, enforceable against it in accordance with its terms, except to the extent
that enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting
the enforcement of creditors’ rights generally.

2. Term of Employment. The Company will continue to employ the Executive and the Executive
accepts continued employment by the Company on the terms and conditions herein contained for a
period (the “Employment Period”) provided in Section 5.

3. Duties and Functions.

(a) During the Employment Period, the Executive shall be employed as Chief Executive Officer
of both DFG and DFC. The Executive will report solely and directly to the Boards of Directors of
DFG and DFC, respectively. The Company will use its commercially reasonable efforts, subject to
stockholder vote, to nominate the Executive to the boards of directors of both DFG and DFC (each,
as applicable, the “Board”) for so long as he is employed by DFG and DFC in the capacity of Chief
Executive Officer.

(b) During the Employment Period, the Executive shall have all authorities, duties and
responsibilities customarily exercised by an individual serving as Chief Executive Officer of DFG
and/or DFC in a corporation the size and nature of the Company and shall be assigned no duties or
responsibilities that are materially inconsistent with, or that materially impair his ability to
discharge, the foregoing duties and responsibilities.

(c) During the Employment Period, the Executive will devote substantially all of his time and
efforts to the business of the Company and will not engage in consulting work or any trade or
business for his own account, or for or on behalf of any other person, firm or corporation, that
competes, conflicts or interferes with the performance of his duties hereunder. The Executive may
continue to serve as a director of Cloverdale Press Inc., serve as a director of other for-profit
corporations with the consent of the Board (which consent shall not be unreasonably withheld),
engage in educational, charitable and/or civic activities, including service as a board member or
an advisor, engage in public speaking and manage his family and personal affairs, including any
investments, provided that any such activities do not conflict or compete with the Company’s
business activities and so long as such activities do not interfere with the Executive’s
responsibilities under this Agreement.

4. Compensation.

(a) Base Salary. As compensation for his services hereunder, during the Term, the
Company agrees to pay the Executive a base salary at the rate of Nine Hundred and Eighty Five
Thousand Dollars ($985,000) per annum (the “Base Salary”), effective as of July 1, 2009, payable
ratably in accordance with the Company’s normal payroll schedule, but in no event less frequently
than semi-monthly; provided that, to effect such Base Salary retroactive to July 1, 2009 with
respect to already completed pay periods, the Company will pay the Executive the difference between
the actual salary already received by him since July 1, 2009 and the Base Salary, such difference
to be paid in a single cash lump sum as soon as administratively practicable following the date
hereof, but in no event later than December 31, 2009. The Company may withhold from any amounts
payable under this Agreement such federal, state or local taxes as shall be required to be withheld
pursuant to any applicable law or regulation. During the Term, the Executive’s Base Salary shall
be reviewed at least annually by the Board of DFC or the Human Resources and Compensation Committee
of the Board of Directors of DFC (the “Compensation Committee”) and may be increased from time to
time as shall be determined by the Board or the Compensation Committee. After any such increase,
the term “Base Salary” as utilized in this Agreement shall thereafter refer to the increased
amount. Base Salary shall not be reduced at any time without the express prior written consent of
the Executive.

(b) Annual Bonus. For each full or partial year during the Term, the Executive will
be eligible to receive an annual cash bonus award with a target bonus of 125% of the Executive’s
Base Salary (as defined herein) in effect at the time such award is determined (the “Target Bonus”)
(with “Base Salary” for fiscal year 2010 deemed to be no less than $985,000), but not to exceed
175% of the Executive’s Base Salary, with such leverage curve and metrics determined by the
Compensation Committee and as applicable to other senior executives of the Company. Said bonus is
not guaranteed and is contingent upon the Executive and the Company achieving the corporate goals
as set by the Board of DFC or the Compensation Committee, with any such goals at the corporate
level being no less favorable to the Executive than those set for other senior executives of the
Company. The annual bonus will be confirmed by the Board of DFC or Compensation Committee and, to
the extent a bonus is awarded, unless the Executive elects to defer all or a portion of such bonus
in manner which does not impose any additional taxes, interest or penalties on the Executive
pursuant to Section 409A of the Internal Revenue Code of 1986, as amended from time to time, and
its implementing regulations and guidance (“Section 409A”), it shall be paid to the Executive in
cash subsequent to the conclusion of the Company’s annual audit, with a target payment date of
seventy five (75) days following the close of the relevant fiscal year of the Company but, in any
event, any such bonus will be paid for a given fiscal year within one hundred and twenty (120) days
of the closing of the fiscal year. During the Term, the Executive’s Target Bonus and maximum bonus
opportunity as a percentage of Base Salary shall be reviewed at least annually by the Board of DFC
or the Compensation Committee and may be increased from time to time as shall be determined by the
Board or the Compensation Committee. After any such increase, the term “Target Bonus” and the
reference to the maximum bonus opportunity as a percentage of Base Salary as utilized in this
Agreement shall thereafter refer to the increased amount. The Target Bonus and the maximum bonus
opportunity as a percentage of Base Salary shall not be reduced at any time without the express
prior written consent of the Executive.

(c) Other Expenses. In addition to the compensation provided for above, during the
Term, the Company agrees to pay or to reimburse the Executive during his employment for all
reasonable, ordinary and necessary, properly vouchered, business or entertainment expenses incurred
in the performance of his services hereunder in accordance with Company policy in effect from time
to time. The Executive shall be entitled to the same class of travel as is consistent with the
Company’s policy and practice as of the date of this Agreement.

(d) Vacation. During the Term, the Executive will be allowed five (5) weeks of paid
vacation during each calendar year. To the extent that the Executive is unable to use his accrued
vacation leave in a given calendar year, he shall be permitted to carry over his paid vacation
leave and use it in subsequent years, and shall not forfeit his accrued vacation leave.

(e) Car Lease/Allowance. During the Term, the Executive will be entitled to a car
allowance equal to the rate in effect on the date of this Agreement.

(f) Employee Benefits. In addition to his compensation provided by the foregoing,
during the Term, the Executive will be entitled to the health, welfare and tax-qualified retirement
benefits available generally to Company senior executives and employees pursuant to the plans,
policies, programs or arrangements of DFG, DFC or any of their affiliates on a basis no less
favorable to the Executive than provided to any other senior executive of the Company, including,
by way of illustration, personal leave, paid holidays, sick leave, profit-sharing, 401(k) plan,
other tax-qualified retirement, disability, dental, vision, group sickness, accident, or health
insurance programs of the Company or any affiliate which may now or, if not terminated, shall
hereafter be in effect, or in any other or additional such programs which may be established by the
Company or any affiliate, as and to the extent any such programs are or may from time to time be in
effect, as determined by the Company and the terms hereof, subject to the applicable terms and
conditions of the benefit plans in effect at that time. Except to the extent otherwise provided in
other clauses of this Section 4, nothing herein shall affect the Company’s ability to modify,
alter, terminate or otherwise change any benefit plan it has in effect at any given time, to the
extent permitted by law. Notwithstanding anything herein to the contrary or otherwise, except to
the extent any expense, reimbursement or in-kind benefit provided pursuant to Sections 4(c) and
4(e) and this Section 4(f) does not constitute a “deferral of compensation” within the meaning of
Section 409A (A) the amount of expenses eligible for reimbursement or in-kind benefits provided to
the Executive during any calendar year will not affect the amount of expenses eligible for
reimbursement or in-kind benefits provided to the Executive in any other calendar year, (B) the
reimbursements for expenses for which the Executive is entitled to be reimbursed shall be made on
or before the last day of the calendar year following the calendar year in which the applicable
expense is incurred and (C) the right to payment or reimbursement or in-kind benefits hereunder may
not be liquidated or exchanged for any other benefit.

(g) Equity Award. On or about November 1, 2009 (the “Grant Date”), DFC shall grant to
the Executive, provided that he is employed by the Company on such date, an equity award subject to
the following terms and conditions: (i) any such award shall be subject to the terms and
conditions of one or more applicable equity incentive plans sponsored from time to time by DFC that
has been approved by the shareholders of DFC on or after the date hereof (collectively, the “Plan”)
and the terms and conditions set forth in any applicable award agreement issued under any such
Plan; provided that if there is a conflict between the Plan and any provision of this Agreement,
the provision of this Agreement shall govern; (ii) any such award may be in the form of restricted
shares or stock options, or some combination thereof, as determined in the sole discretion of the
Compensation Committee; (iii) to the extent that the award is in the form of options, the per share
exercise price shall be equal to the fair market value per share of common stock on the grant date
as defined in the applicable Plan, (iv) the number of shares subject to any such grant shall be
determined by Compensation Committee; provided, that the award shall be of such size and type to
require DFC to record an accounting charge, which shall be determined in accordance with generally
accepted accounting principles (GAAP) consistent with the assumptions DFC will use to estimate the
value of employee stock options and/or restricted stock, as applicable, in its 10-K for the year
including the Grant Date in an amount equal to one (1) times the bonus amount that the Executive
was paid (including any amount deferred) by the Company for the 2009 fiscal year, the value of
which is $911,520; and (v) the award will vest in equal annual installments on the first, second
and third anniversaries of the applicable Grant Date to the extent that, except as otherwise
provided in Section 5 hereof, the Executive is employed by the Company on such date; provided,
however, that if the value of any restricted shares (including restricted shares granted on or
about November 15, 2007 and November 1, 2008 pursuant to the Prior Agreement) become taxable to the
Executive before such restricted shares would otherwise become vested (not including taxation in
the event of an election under section 83(b) of the Code), a number of then unvested restricted
shares reasonably determined by the Company to be necessary to satisfy any applicable wage and
income taxes payable by the Executive with respect to all such unvested restricted shares shall
become vested upon the date any such tax is required to paid or withheld by or from the Executive.
Notwithstanding anything herein to the contrary, DFC shall not be required to make any equity grant
pursuant to this Section 4(g) if and to the extent that, at the time of such grant, DFC does not
have sufficient shares of common stock to do so under any Plan or making such grant would, alone or
in connection with any other equity award, violate any limitation imposed by the Plan with respect
to the number of shares that may be awarded to the Executive within any given fiscal year; provided
that DFC shall make the grant up to the number of shares available and then award any remaining
portion of the grant to the Executive as soon as possible thereafter (with the “Grant Date” for
purposes of the vesting for such award being the original date the award should have been made
hereunder). Notwithstanding anything elsewhere to the contrary, upon a Change in Control (as
defined in Section 5(a) below), all the Executive’s Equity Awards (as defined in Section 5(c)
below) shall vest immediately prior to and contingent on the consummation of such event.

(h) Capstone Award; Incremental Capstone.

(i) Capstone Award.

(A) In recognition of the Executive’s service on the Board of Directors of DFC, including his
service as Chairman of the Board, and in recognition of the Executive’s prior and future service to
the Company, which in 2010 will reach 20 years, on the earliest to occur, if any, of: (1) the date
that the Executive’s employment is terminated by reason of Retirement or Delayed Retirement (each
as defined below); (2) the date that the Executive’s employment is terminated by the Company
without Cause (as defined below) or by the Executive’s resignation with Good Reason (as defined
below); (3) the date that the Executive’s employment terminates by reason of his Disability; or (4)
the date that a change in control occurs during the Employment Period (each a “Capstone Award
Vesting Date”), the Executive will be entitled to receive a Capstone Award. For purposes of this
Agreement, the “Capstone Award” is a lump-sum payment which is the actuarial equivalent (determined
in accordance with Section 4(h)(iv)) of an annual benefit of $300,000 payable to the Executive in
equal monthly installments during his lifetime commencing on the Capstone Award Payment Date (as
defined below), with a $150,000 per year survivor benefit payable on his subsequent death to the
Executive’s Surviving Spouse (as defined below) for her lifetime.

(B) If the Executive dies prior to a Capstone Award Vesting Date and the Executive then is and
has remained married to his current spouse (determined as of the date of this Agreement) through
his date of death (his “Surviving Spouse”), the Capstone Award shall not be paid and such Surviving
Spouse will be entitled to receive a Survivor Benefit. For purposes of this Agreement, the
“Survivor Benefit” is a lump-sum payment that is the actuarial equivalent (determined in accordance
with Section 4(h)(v)) of an annual benefit of $150,000 payable to the Surviving Spouse in equal
monthly installments for her lifetime commencing on the first business day of the calendar month
following the Executive’s death.

(C) The Capstone Award shall be paid on the first business day of the calendar month that
follows the applicable Capstone Award Vesting Date (the “Capstone Award Payment Date”). If the
Executive dies after any Capstone Award Vesting Date and before the Capstone Award Payment Date,
the Capstone Award shall be paid to his Surviving Spouse on the Capstone Award Payment Date (or to
her estate if she dies before the Capstone Award Payment Date).

(D) Notwithstanding anything herein to the contrary, if the Executive terminates his
employment without Good Reason or the Company terminates the Executive for Cause (and, in either
case, such termination occurs prior to a change in control, and is not a termination by reason of
Retirement or Delayed Retirement), neither the Executive nor his Surviving Spouse shall be entitled
to any Capstone Award or Survivor Benefit under this Section 4(h)(i). Upon any Capstone Award
Vesting Date or the Executive’s prior death, the Capstone Award or Survivor Benefit, as applicable,
shall become non-forfeitable.

(ii) Incremental Capstone.

(A) For each of the Company’s fiscal years ending June 30, 2010 and June 30, 2011, if
Executive remains continuously employed by the Company through such date(s), and upon the
occurrence of an Incremental Capstone Vesting Date (defined below), if any, Executive will be
entitled to receive a lump-sum payment which is the actuarial equivalent (determined in accordance
with Section 4(h)(iv)) of an annual benefit of $75,000 (such potential aggregate benefit, $150,000)
payable to Executive in equal monthly installments during his lifetime commencing the first
business day of the calendar month that follows the applicable Incremental Capstone Vesting Date
(as defined below), with a $37,500 per year survivor benefit (such potential aggregate benefit,
$75,000) payable on his subsequent death to the Surviving Spouse for her lifetime (the “Incremental
Capstone”).

(B) If Executive dies prior to an Incremental Capstone Vesting Date and Executive then is and
has remained married to his Surviving Spouse through his death, the Incremental Capstone shall not
be paid and such Surviving Spouse will be entitled to receive a lump-sum payment that is the
actuarial equivalent of an annual benefit of $75,000 payable to her in equal monthly installments
for her lifetime commencing on the first business day of the calendar month following the
Executive’s death (the “Incremental Survivor Benefit”).

(C) One Million Dollars ($1,000,000) of the actuarial equivalent lump sum value of the
Incremental Capstone (or if less, all of such Incremental Capstone) shall be paid on the first
anniversary of the applicable Incremental Capstone Vesting Date (or the first business day
thereafter). The actuarial equivalent lump sum value of the Incremental Capstone that exceeds
$1,000,000, if any, shall be paid on the first business day of the calendar month that follows the
applicable Incremental Capstone Vesting Date. If the Executive dies after any Incremental Capstone
Vesting Date and before the Incremental Capstone is fully paid, the Incremental Capstone (or
remaining portion thereof) shall be paid to his Surviving Spouse within 30 days of the Executive’s
death (or to her estate if she dies before such payment date).

(D) The Incremental Capstone Vesting Date means the earliest to occur, if any, of: (1) the
date that the Executive’s employment terminates by reason of Delayed Retirement (as defined below);
(2) the date that Executive’s employment is terminated by the Company without Cause or by
Executive’s resignation with Good Reason; (3) the date that the Executive’s employment terminates
by reason of his Disability; or (4) the date that a change in control occurs during the Employment
Period.

(E) Notwithstanding anything herein to the contrary, if the Executive terminates his
employment without Good Reason or the Company terminates the Executive for Cause (and, in either
case, such termination occurs prior to a change in control, and is not a termination by reason of
Delayed Retirement), neither the Executive nor his Surviving Spouse shall be entitled to any
Incremental Capstone or Incremental Survivor Benefit under this Section 4(h)(ii). Upon any
Incremental Capstone Vesting Date or the Executive’s prior death, the Incremental Capstone or
Incremental Survivor Benefit, as applicable, shall become non-forfeitable.

(iii) If payment of the Capstone Award or Incremental Capstone (or portion thereof) is subject
to the requirements of Treas. Reg. § 1.409A-3(i)(2) (or any successor provision), the Capstone
Award and applicable portion of the Incremental Capstone shall be paid, with interest at LIBOR from
the date the Capstone Award and applicable portion of the Incremental Capstone would have been paid
without the application of this regulation to the actual payment date, to the Executive (or his
Surviving Spouse (or her estate, if applicable) if the Executive dies after a Separation from
Service) at the earlier of the Executive’s death or the first business day of the seventh calendar
month following the calendar month in which the date of the Separation From Service occurs. Any
Survivor Benefit and Incremental Survivor Benefit shall be paid to the Surviving Spouse on the
first business day of the calendar month following the Executive’s death, provided that if the
Surviving Spouse dies before the Survivor Benefit and Incremental Survivor Benefit is paid, such
benefits shall be paid to her estate.

(iv) Actuarial equivalence for purposes of this Section 4(h) will be determined in good faith
by the Compensation Committee using (1) an interest rate equal to the average annual yield on a
30-year U.S. Treasury security for the month in which the lump-sum payment will be made, and (2)
the mortality table prescribed by the Secretary of the U.S. Treasury for the valuation of lump-sum
payment from qualified retirement plans. For purposes of this Section 4(h), “change in control”
shall mean a Change in Control as defined below in Section 5(a), provided that such Change in
Control constitutes a change in the ownership or effective control of DFC or DFG (or both), or a
change in the ownership of a substantial portion of the assets of DFC or DFG, in each case within
the meaning of Treas. Reg. § 1.409A-3(i)(5).

(i) Long-Term Incentive Plan.

(i) Beginning with the Company’s fiscal year ending June 30, 2010, and provided that Executive
is employed by the Company on the last day of each applicable fiscal year, Executive shall be
entitled to an annual award under the Company’s Long Term Incentive Plan (“LTIP”) equal to 200% of
his Base Salary (the “LTI Award”). LTI Awards shall be granted at the same time as LTIP awards are
made to other LTIP participants. One-half of the LTI Award shall be payable in cash (the “Cash
LTI”), with the remaining half deliverable in a combination of restricted stock units,
non-qualified stock options and cash (“Plan LTI”), with the following terms:

(ii) Cash LTI. The Cash LTI shall be payable on the date that Executive’s permanent
successor as Chief Executive Officer is appointed by the Board if Executive remains continuously
employed by the Company through such date; provided that each outstanding Cash LTI award shall vest
and become payable (A) annually if the Board concludes in its reasonable discretion that
satisfactory progress has been achieved by Executive in planning for the succession of his Chief
Executive Officer position and duties or (B) upon a Change in Control (as defined below), in each
case subject to the Executive remaining continuously employed by the Company through such date. If
Executive’s successor as permanent Chief Executive Officer is appointed by the Board prior to June
30, 2012, Executive shall receive (provided that Executive remains continuously employed through
such appointment) payment, on the date such successor is appointed by the Board, of the amount of
the Cash LTI grant that would have been made if the Executive remained employed by the Company
through June 30, 2012 (based on Executive’s Base Salary in effect at the time of such appointment).
Except as otherwise provided in Section 5, any Cash LTI that remains unvested as of the date of
the Executive’s termination of employment shall be immediately forfeited upon termination.

(iii) Plan LTI. The apportionment of the Plan LTI between restricted stock units,
non-qualified stock options and cash shall be in the same proportion as other management members
participating in the LTIP, as determined by the Board or Compensation Committee. Restricted stock
units and stock options shall vest ratably on a quarterly basis over a three-year period provided
the Executive remains continuously employed by the Company through such dates, with the shares or
cash, if applicable, representing such restricted stock units delivered within 30 days of such
vesting date. The cash component of the Plan LTI shall vest annually over a three-year period,
provided that the Company meets EBITDA targets and/or other strategic objectives set by the Board
or Compensation Committee under the LTIP, and shall be paid within 30 days of the vesting date. If
Executive’s successor as permanent Chief Executive Officer is appointed by the Board prior to June
30, 2012, Executive shall receive (provided that Executive remains continuously employed through
such appointment), at the time annual LTIP awards are made, the pro rata portion of the Plan LTI
(determined using a fraction the numerator of which will be the number of days elapsed from the
beginning of the applicable fiscal year to the date of termination, and the denominator of which
will be 365) that would have been granted if Executive remained employed by the Company until the
end of the fiscal year that includes the date such successor is appointed by the Board, with any
time based vesting criteria deemed to be satisfied and options subject to such Plan LTI award
remaining exercisable for twenty four (24) months from the date of termination. The portion of the
Plan LTI granted in the form of options shall have a per share exercise price equal to the fair
market value per share of common stock on the grant date as defined in the LTIP or applicable award
agreement. The number of shares subject to option grants and restricted stock unit grants under
the Plan LTI award shall be determined by the Compensation Committee consistent with the
assumptions DFC will use to estimate the value of employee stock options and/or restricted stock
units, as applicable, in its 10-K for the year in which the options or restricted stock units, as
applicable, are granted. Each Plan LTI award (including each underlying restricted stock units,
non-qualified stock options and cash grants) shall be subject to the terms and conditions of the
LTIP and the terms and conditions set forth in any applicable award agreement issued under the
LTIP; provided that if there is a conflict between the provisions of this Agreement and the LTIP or
applicable award agreement, the provisions of this Agreement shall govern. Notwithstanding
anything elsewhere to the contrary, upon a Change in Control, all the outstanding Plan LTI awards
shall vest immediately prior to and contingent on the consummation of such event provided the
Executive remains continuously employed by the Company through such event. Except as otherwise
provided in Section 5, any Plan LTI that remains unvested as of the date of the Executive’s
termination of employment shall be immediately forfeited upon termination.

(iv) For purposes of satisfying service-based vesting and payment of any LTI Award, if the
Executive’s successor as permanent Chief Executive Officer is not appointed by the Board on or
before June 30, 2012 and the Company gives a notice of non-renewal of the Initial Term, any Renewal
Term or the Change in Control Term, the Executive may continue his employment by the Company,
at-will, as its Chief Executive Officer until such successor is appointed. In no event shall the
Executive be entitled to any LTI Award for any fiscal year after the fiscal year ending June 30,
2012.

(j) Additional Benefits. In addition to his compensation provided by the foregoing,
during the Term, the Executive will also be entitled to: (i) reimbursement up to an aggregate of
$100,000 annually for his purchase of up to $10,000,000 of term life insurance and/or disability
insurance, following delivery of proper documentation of those costs; (ii) reimbursement up to
$10,000 annually for reasonable tax and financial planning costs, following delivery of proper
documentation of those costs; (iii) reimbursement up to $15,000 annually for reasonable
out-of-pocket uninsured medical and dental costs; and (iv) club memberships at the rate currently
in effect as of the date of this Agreement; provided, however, that except to the extent any such
expense, reimbursement or in-kind benefit does not constitute a “deferral of compensation” within
the meaning of Section 409A (A) the amount of expenses eligible for reimbursement or in-kind
benefits provided to the Executive during any calendar year will not affect the amount of expenses
eligible for reimbursement or in-kind benefits provided to the Executive in any other calendar
year, (B) the reimbursements for expenses for which the Executive is entitled to be reimbursed
shall be made on or before the last day of the calendar year following the calendar year in which
the applicable expense is incurred and (C) the right to payment or reimbursement or in-kind
benefits hereunder may not be liquidated or exchanged for any other benefit.

5. Employment Period; Termination.

(a) Commencement. The Executive’s employment pursuant to this Agreement shall
commence on the date of this Agreement (the “Commencement Date”), and shall continue thereafter
until June 30, 2012 (the “Initial Term”), and shall thereafter automatically renew for additional
one year periods (each, a “Renewal Term”), unless sooner terminated in accordance with this
Agreement or written notice is given by one party to the other at least One Hundred and Eighty
(180) days prior to the expiration of the Initial Term or any Renewal Term, as applicable. In the
event that either a definitive agreement is executed during the Term which would upon the
consummation of the closing thereunder result in a Change in Control (as defined in this Section
5(a) of this Agreement) or a Change in Control occurs during the Initial Term or a Renewal Term,
this Agreement shall automatically renew for an additional two year period (the “Change in Control
Term”) beginning on the date of the expiration of the Initial Term or Renewal Term, as applicable.
Following such a Change in Control Term, this Agreement shall automatically renew for additional
one year Renewal Terms, unless sooner terminated in accordance with this Agreement or written
notice is given by one party to the other at least One Hundred and Eighty (180) days prior to the
expiration of the Change in Control Term or any Renewal Term, as applicable. The Initial Term, any
Renewal Term and any Change in Control Term are herein collectively referred to as the “Term.”

For purposes of this Agreement, “Change in Control” shall mean, and be deemed to have occurred
upon: (i) a sale or transfer of substantially all of the assets of either DFC or DFG in any
transaction or series of related transactions (other than sales in the ordinary course of
business); (ii) any merger, consolidation or reorganization to which either DFC or DFG is a party,
except for an internal reorganization or a merger, consolidation or reorganization in which the
Company is the surviving corporation and, after giving effect to such merger, consolidation or
reorganization, the holders of the Company’s outstanding Common Stock (on a fully-diluted basis)
immediately prior to the merger, consolidation or reorganization will own, immediately following
the merger, consolidation or reorganization, capital stock holding a majority of the voting power
of the Company; (iii) any sale or series of sales of shares of the capital stock of DFC by the
holders thereof which results in any person or group of  affiliated persons owning capital stock
holding twenty five percent (25%) or more of the voting power of DFG at the time of such sale or
series of sales; (iv) a circumstance where any individual, firm, corporation, limited liability
company, partnership, sole proprietorship, trust or other legally cognizable entity (“Person”)
other than an “Exempted Person” (as defined below) who or which, alone or together with any
affiliates or associates of that person, becomes the Beneficial Owner (as defined in Rule 13d-3 of
the Securities Exchange Act of 1934, as amended from time to time) of twenty-five percent (25%) or
more of the voting securities of DFC (including all securities or other interests in DFC having by
their terms ordinary voting power to elect members of the Board of Directors of DFC collectively
“Voting Securities”) except as a result of (y) any acquisition of DFC’s Voting Securities by the
Company, or (z) any acquisition of DFC’s Voting Securities directly from the Company, as authorized
by the Board; (v) any liquidation, dissolution or winding up of either DFC or DFG; (vi) any
circumstance by which the persons who constitute DFC’s Board of Directors as of the date hereof
cease for any reason to constitute a majority of the directors of DFC, unless the election or
nomination for election of each director who is not a director on the date hereof was approved by a
vote of no less than a two-thirds (2/3) of the directors then still in office who are directors on
the date hereof or are new directors approved by such vote; or (vii) DFC ceases to be a company
whose common stock is publicly traded on a major United States stock exchange such as the NYSE or
NASDAQ.

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

(b) Employment Period. The Employment Period under this Agreement shall commence on
the Commencement Date and shall continue until the earlier of the expiration of the Term or the
effective date of the termination of the Executive’s employment pursuant to Section 5 of this
Agreement. For the avoidance of doubt, any termination by either DFG or DFC of the Executive’s
employment shall be deemed to be a termination of the Executive’s employment by the Company for
purposes of this Agreement. For purposes of determining under Section 409A whether there has been
a “separation from service” with the meaning of Treasury Regulation Section 1.409A-1(h) (or any
successor regulation), the Executive shall be deemed to have incurred a separation from service if
his employment has been terminated in accordance with Sections 5(c) through Section 5(j) hereof and
he is performing less than 50% of the average level of bona fide services he was performing for the
Company in the immediately preceding 36-month period (“Separation From Service”).

(c) Termination By Executive Without Good Reason. Notwithstanding the provisions of
Sections 5(a) and (b) above, the Executive may terminate the employment relationship at any time
for any reason by giving the Company written notice at least thirty (30) days prior to the
effective date of termination and such termination shall not be deemed to be a breach by the
Executive of this Agreement. Such termination shall constitute the Executive’s resignation from
the Boards. The Company, at its election, may (i) require the Executive to continue to perform his
duties hereunder for the full thirty (30) day notice period, or (ii) terminate the Executive’s
employment at any time during such thirty (30) day notice period, provided that any such
termination shall not be deemed to be a termination of the Executive’s employment by the Company
without Cause. Upon such termination, the Executive shall be entitled to: (i) any Base Salary
earned through the effective date of termination that remains unpaid and any accrued but unpaid
vacation time, with any such amounts paid on the first regularly scheduled payroll date following
the effective date of termination; (ii) any bonus payable pursuant to Section 4(b) with respect to
any fiscal year which ended prior to the effective date of the Executive’s termination of
employment, which remains unpaid, with such amount paid in the first regularly scheduled payroll
date following the effective date of termination or, if later, at the same time the bonus would
have been payable to the Executive under Section 4(b) hereof; (iii) any reimbursement or payment
due to the Executive on or prior to the date of such termination which remains unpaid to the
Executive pursuant to the terms of Sections 4(c), 4(e), 4(f) and/or 4(i), with any such payment
being made promptly following the effective date of termination but in no event later than the date
set forth in Section 4(f) or Section 4(j), as applicable; (iv) any right, payment or benefit that
accrued or became due to the Executive prior to the date of such termination which remains unpaid
to the Executive under Section 4(h) (Capstone Award), if any, Section 4(i) (LTI Awards), if any, or
pursuant to any applicable plans, programs, policies or arrangements of the Company or any
affiliate in which the Executive participated as of the effective date of termination, including,
without limitation, any plans or agreements relating to the vested portion of any stock options,
restricted stock or similar equity interests awarded to the Executive prior to the date of such
termination, or the vested portion of any equity awards granted to the Executive prior to the date
of such termination in connection with any long-term incentive program in which he has participated
while employed by DFG, DFC or any of their affiliates (the “Equity Awards”), and (v) any right,
payment or benefit due or that becomes payable under Section 5(k) (Section 280G of the Code),
Section 19 (Indemnification) or Section 20 (Attorneys’ Fees and Expenses) (clauses (i) through (v),
collectively “Accrued and Other Obligations”). In addition, any Equity Awards and options subject
to Plan LTI awards which are vested as of the effective date of termination shall not be forfeited
and, if applicable, shall remain exercisable pursuant to their existing terms and conditions.

(d) Termination By Company For Cause. The Company may immediately terminate the
Executive’s employment hereunder for “Cause.” Such termination shall constitute the Executive’s
resignation from the Boards. If the Executive’s employment is terminated for “Cause,” the
Executive will not be entitled to and shall not receive any compensation or benefits of any type
following the effective date of termination other than the Accrued and Other Obligations; provided,
however, that any outstanding Equity Awards that were granted on or after the date of this
Agreement and held by the Executive as of the effective date of any such termination, and any LTI
Awards held by the Executive as of the effective date of any such termination, will immediately be
forfeited. As used in this Agreement, the term “Cause” shall mean (i) the Executive’s willful and
continued failure to substantially perform his material duties for the Company (other than on
account of vacation, personal time off, approved leave of absence and/or Disability or after
receipt by the Executive of a notice that his employment is being terminated without Cause by the
Company or after Executive gives notice to the Company that he has grounds to resign for Good
Reason); (ii) the Executive is convicted of, or enters a plea of guilty or nolo contendere to, (A)
a felony (other than a minor traffic violation) or (B) a crime involving moral turpitude; or (iii)
in carrying out his duties under the Agreement, the Executive engages in (x) willful gross neglect
causing material harm to the Company or its business or (y) willful and material misconduct
relating to the business of the Company. For purposes of this “Cause” definition, no act or
omission by the Executive shall be deemed to be “willful” if the Executive had a good faith belief
that such act or omission was in, or not opposed to, the best interests of the Company or its
affiliates. Anything herein to the contrary notwithstanding, the Executive shall not be terminated
for “Cause,” within the meaning of clauses (i) and (iii) of this Section, unless written notice
stating the basis for the termination is provided to the Executive and, if such neglect or conduct
is reasonably curable, he is given no less than 20 days to cure the neglect or conduct that is the
basis of such claim and, if he fails to cure such neglect or conduct or such neglect or conduct is
not reasonably curable, the Executive has an opportunity to be heard before the full Board of DFC
(represented by counsel) and, after such hearing, there is a vote of a majority of the members of
the Board (not counting the Executive) to terminate Executive’s employment for Cause.

(e) Termination By Company Without Cause. Upon thirty (30) days written notice, the
Company shall retain the right to terminate the Executive without Cause. Such termination shall
constitute the Executive’s resignation from the Boards and termination of his employment with the
Company on the 30th day following the Executive’s receipt of such notice. Unless
otherwise provided by this Section, all compensation and benefits paid by the Company to the
Executive shall cease upon his last day of employment. Subject to Section 5(l) below, if the
Executive’s employment is terminated by the Company without Cause, the Executive shall be provided
with the following severance package:

(i) The Executive shall continue to receive an amount equivalent to his Base Salary for a
period of twenty four (24) months following the Separation From Service (the “Severance Period”),
with such amount to be paid to the Executive in substantially equal installments bi-weekly;

(ii) The Executive shall receive an amount equal to two (2) times his Target Bonus, with said
amount to be paid to the Executive over a period of twenty four (24) months in 24 equal
installments, with each payment being made on the first business day of each calendar month, with
the first payment being made in the month following the month in which the Separation From Service
occurs;

(iii) The Executive shall receive a lump sum payment for his annual bonus (as contemplated
under Section 4(b) of this Agreement), which shall be equal to the product of (A) the Target Bonus
for the bonus year in which the Executive’s Separation From Service occurs multiplied by (B) a
fraction, the numerator of which will be the number of days elapsed from the beginning of the
annual bonus determination period to the date of the Separation From Service, and the denominator
of which will be 365, payable within 30 days following the date the Separation From Service occurs,
with such payment date within such time period within the Company’s sole discretion;

(iv) During the Severance Period, the Company shall continue to contribute to the cost of the
Executive’s (including his dependents’) group health plan (including medical and dental) coverage
by contributing an amount equal to the amount paid by the Company towards its “group health plans”
(within the meaning of ERISA) for active Company employees towards the Executive’s (including his
dependents’) COBRA premium, but only to the extent that the Executive applies for and otherwise
remains eligible for health care continuation coverage under COBRA throughout the Severance Period,
provided that, to the extent COBRA continuation coverage eligibility expires before the end of the
Severance Period, the Executive will receive payment, on an after-tax basis, of an amount equal to
the premium the Company would have otherwise contributed to COBRA coverage pursuant to this Section
5(e)(iv); provided that to the extent that the foregoing medical and dental benefits are taxable to
the Executive, any medical or dental reimbursements shall be paid to the Executive promptly but in
all events on or before the last day of the Executive’s taxable year following the taxable year in
which the expense is incurred and provided further that any tax gross-up payment to the Executive
pursuant to this Section 5(e)(iv) shall be paid to the Executive on or before the last day of the
Executive’s taxable year following the taxable year in which the Executive (or the Company) remits
the related taxes;

(v) Any Equity Award and outstanding LTI Award held by the Executive as of the effective date
of his termination will immediately become fully vested as of such date and, as applicable, stock
options subject to such awards shall remain exercisable for the period beginning on the effective
date of the Executive’s termination and ending on the sooner of twenty four (24) months from the
effective date of the Executive’s termination, the latest date upon which the award would have
expired by its original terms if the Executive had remained employed indefinitely or the
10th anniversary of the original date of grant of the award, and any Cash LTI shall be
paid within 30 days following the date the Separation from Service occurs;

(vi) (A) if terminated prior to June 30, 2011, the Incremental Capstone will immediately
become fully vested as of the effective date of termination, as if Executive remained continuously
employed by the Company through June 30, 2011, (B) if terminated prior to June 30, 2012, Executive
will be entitled to receive, within thirty (30) days of such termination, payment in the amount of
Cash LTI, fully vested, that would have been granted if Executive had remained employed by the
Company through June 30, 2012 (based on his Base Salary in effect at the time of termination), and
(C) Executive shall receive, at the time annual LTIP awards are made, the pro rata portion of the
Plan LTI (determined using a fraction the numerator of which will be the number of days elapsed
from the beginning of the applicable fiscal year to the date of termination, and the denominator of
which will be 365) that would have been granted in accordance with Section 4(i), if any, if
Executive remained employed by the Company until the end of the fiscal year that includes the date
of termination, with any time based vesting criteria (but not performance vesting criteria) deemed
to be satisfied and stock options subject to such Plan LTI award remaining exercisable for the
period beginning on the effective date of the Executive’s termination and ending on the sooner of
twenty four (24) months from the effective date of the Executive’s termination, the latest date
upon which the stock option would have expired by its original terms if the Executive had remained
employed indefinitely or the 10th anniversary of the original date of grant of the stock option;
and

(vii) The Accrued and Other Obligations (as defined in Section 5(c) above).

The benefits and compensation described in Sections 5(e)(i) through (vi) that the Executive shall
receive is referred to jointly herein as the Severance Compensation.

The Company shall not be obligated to pay or provide to the Executive any Severance Compensation
due and owing to him on or after the date that he willfully and materially breaches Section 7
and/or Section 8 of this Agreement; provided, however, that before the Company ceases paying or
providing any such Severance Compensation, the Company shall give the Executive written notice of
the event or events giving rise to such forfeiture and no less than twenty (20) days to cure and if
the Executive cures such event or events, the Severance Compensation shall continue to be paid or
provided as set forth herein. Whether the Executive has willfully and materially breached Section
7 and/or Section 8 shall be subject to de novo review in accordance with Section 18 below. Also,
no Severance Compensation shall be paid to the Executive until he executes and delivers to the
Company, and does not revoke in the time period provided therein, the release attached hereto as
Exhibit A. Upon the Executive delivering and not revoking such Release, DFG and DFC agree to
execute and promptly deliver the Release attached hereto as Exhibit B to the Executive. If the
Executive delivers and does not revoke the Release in the time period provided therein, the
Severance Compensation shall be due and payable to him; provided, however, that such Release shall
not be effective as a release of claims until the Company delivers the Release attached hereto as
Exhibit B to the Executive. The parties hereto acknowledge that the Severance Compensation to be
provided under this Section 5(e) is to be provided in consideration for the above-specified
release. The Severance Compensation described in this Section 5(e) supersedes any other severance
payment provided by any Company policy, plan or practice. Therefore, the Executive acknowledges
and agrees that he is not eligible to receive any severance payment under any other Company
severance policy, plan or practice.

(f) Termination for Executive’s Permanent Disability. To the extent permissible under
applicable law, in the event the Executive becomes permanently disabled during the Term, either the
Executive or the Company may terminate the Executive’s employment under this Agreement by giving
thirty (30) days notice to the other Party of its or his intent to terminate, and unless the
Executive resumes performance of the duties set forth in Section 3 within five (5) days of the date
of the notice and continues performance for the remainder of the notice period, the Executive’s
employment under this Agreement shall terminate at the end of the thirty (30) day period. Any such
termination shall constitute the Executive’s resignation from the Boards. “Permanently disabled”
for the purposes of this Agreement means the Executive’s inability to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous period of not less than 12
months. “Disability” for purposes of this Agreement means the Executive’s being permanently
disabled. Unless otherwise provided by this Section, all compensation and benefits paid by the
Company to the Executive shall cease upon his last day of employment. If the Executive’s
employment is terminated by the Company pursuant to this Section 5(f), the Executive shall be
provided with the following severance package:

(i) The Executive shall receive a lump sum payment for his annual bonus (as contemplated under
Section 4(b) of this Agreement), which shall be equal to the product of (A) the Target Bonus for
the fiscal year in which the Executive’s employment is terminated multiplied by (B) a fraction, the
numerator of which will be the number of days elapsed from the beginning of the annual bonus
determination period to the date of termination, and the denominator of which will be 365, payable
within 30 days following the termination date, with such payment date within such time period
within the Company’s sole discretion;

(ii) During the twenty four (24) months following the effective date of his termination
pursuant to this Section 5(f) (the “Disability Severance Period”), the Company shall continue to
contribute to the cost of the Executive’s (including his dependents’) group health plan (including
medical and dental) coverage by contributing an amount equal to the amount paid by the Company
towards its “group health plans” (within the meaning of ERISA) for active Company employees towards
the Executive’s (including his dependents’) COBRA premium, but only to the extent that the
Executive applies for and otherwise remains eligible for health care continuation coverage under
COBRA throughout the Severance Period, provided that, to the extent COBRA continuation coverage
eligibility expires before the end of the Severance Period, the Executive will receive payment, on
an after-tax basis, of an amount equal to the premium the Company would have otherwise contributed
to COBRA coverage pursuant to this Section 5(f)(ii); provided that to the extent that the foregoing
medical and dental benefits are taxable to the Executive, any medical or dental reimbursements
shall be paid to the Executive promptly but in all events on or before the last day of the
Executive’s taxable year following the taxable year in which the expense is incurred and provided
further that any tax gross-up payment to the Executive pursuant to this Section 5(f)(ii) shall be
paid to the Executive on or before the last day of the Executive’s taxable year following the
taxable year in which the Executive (or the Company) remits the related taxes;

(iii) Any Equity Award and outstanding LTI Award held by the Executive as of the effective
date of his termination will immediately become fully vested as of such date and, as applicable,
stock options subject to such awards shall remain exercisable for the period beginning on the
effective date of the Executive’s termination and ending on the sooner of twenty four (24) months
from the effective date of the Executive’s termination, the latest date upon which the award would
have expired by its original terms if the Executive had remained employed indefinitely or the 10th
anniversary of the original date of grant of the award, and any Cash LTI shall be paid within 30
days following the termination date;

(iv) (A) if terminated prior to June 30, 2011, the Incremental Capstone will immediately
become fully vested as of the effective date of termination, as if Executive remained continuously
employed by the Company through June 30, 2011, (B) if terminated prior to June 30, 2012, Executive
will be entitled to receive, within thirty (30) days of such termination, payment in the amount of
Cash LTI, fully vested, that would have been granted if Executive had remained employed by the
Company through June 30, 2012 (based on his Base Salary in effect at the time of termination), if
any, and (C) Executive shall receive, at the time annual LTIP awards are made, the pro rata portion
of the Plan LTI (determined using a fraction the numerator of which will be the number of days
elapsed from the beginning of the applicable fiscal year to the date of termination, and the
denominator of which will be 365) that would have been granted if Executive remained employed by
the Company until the end of the fiscal year that includes the date of termination, with any time
based vesting criteria (but not performance vesting criteria) deemed to be satisfied and stock
options subject to such Plan LTI award remaining exercisable for the period beginning on the
effective date of the Executive’s termination and ending on the sooner of twenty four (24) months
from the effective date of the Executive’s termination, the latest date upon which the stock option
would have expired by its original terms if the Executive had remained employed indefinitely or the
10th anniversary of the original date of grant of the stock option; and

(v) The Accrued and Other Obligations.

The benefits and compensation described in Sections 5(f)(i) through (iv) that the Executive shall
receive is referred to jointly herein as the “Disability Severance Compensation.” The Company
shall not be obligated to pay or provide to the Executive any Disability Severance Compensation due
and owing to him on or after the date that he willfully and materially breaches Section 7 and/or
Section 8 of this Agreement; provided, however, that before the Company ceases paying or providing
any such Disability Severance Compensation, the Company shall give the Executive written notice of
the event or events giving rise to such forfeiture and no less than twenty (20) days to cure and if
the Executive cures such event or events, the Disability Severance Compensation shall continue to
be paid or provided as set forth herein. Whether the Executive has willfully and materially
breached Section 7 and/or Section 8 shall be subject to de novo review in accordance with Section
18 below. Also, no Disability Severance Compensation shall be paid to the Executive until he
executes and delivers to the Company, and does not revoke in the time period provided therein, the
release attached hereto as Exhibit A. Upon the Executive delivering and not revoking such Release,
DFG and DFC agree to execute and promptly deliver the Release attached hereto as Exhibit B to the
Executive. If the Executive delivers and does not revoke the Release in the time period provided
therein, the Disability Severance Compensation shall be due and payable to him; provided, however,
that such Release shall not be effective as a release of claims until the Company delivers the
Release attached hereto as Exhibit B to the Executive. The parties hereto acknowledge that the
Disability Severance Compensation to be provided under this Section 5(f) is to be provided in
consideration for the above-specified release. The Disability Severance Compensation described in
this Section 5(f) supersedes any other severance payment provided by any Company policy, plan or
practice. Therefore, the Executive acknowledges and agrees that he is not eligible to receive any
severance payment under any other Company severance policy, plan or practice. The foregoing will
not be construed to limit the Executive’s right to payment or reimbursement for claims under any
disability plan, policy or arrangement of the Company in accordance with the terms of such plan,
policy or arrangement.

(g) Termination Due To Executive’s Death. In the event that the Executive dies during
the Term, the Executive’s employment under this Agreement shall terminate as of the date of the
Executive’s death. Unless otherwise provided by this Section, all compensation and benefits paid
by the Company to the Executive shall cease upon his death. A termination due to the Executive’s
death shall be treated for severance purposes as a Termination pursuant to Section 5(f) (concerning
termination in the event of the Executive’s Permanent Disability) and the Executive’s estate (or
beneficiaries with respect to benefits described in Section 5(f)(ii)) shall be entitled to receive
all of the payments, entitlements and benefits set forth in Section 5(f)(i) through (v) above.

(h) Termination by Executive at Retirement or Delayed Retirement.

(i) In the event that the Executive’s employment terminates by reason of Retirement or Delayed
Retirement (each as defined below), the Executive’s employment shall terminate as of the effective
date of such Retirement or Delayed Retirement. Such termination shall constitute the Executive’s
resignation from the Boards. Unless otherwise provided by this Section, all compensation and
benefits paid by the Company to the Executive shall cease upon his last day of employment.

(ii) Retirement. Subject to Section 5(h)(v) below, if the Executive’s employment is
terminated due to the Executive’s Retirement, the Executive shall be provided with the following:

(A) The benefits described in Section 5(e)(iv);

(B) Any Equity Award held by the Executive as of the effective date of his termination will
immediately become fully vested as of such date and, if applicable, remain exercisable for the
period beginning on the effective date of the Executive’s termination and ending on the sooner of
twenty four (24) months from the effective date of the Executive’s termination, the latest date
upon which the Equity Award would have expired by its original terms if the Executive had remained
employed indefinitely or the 10th anniversary of the original date of grant of the Equity Award;

(C) The Executive shall be entitled to receive a lump sum payment for his annual bonus (as
contemplated under Section 4(b)), payable on the date that it would have otherwise been paid
pursuant to Section 4(b) but for the Executive’s termination of employment, equal to the product of
(A) the annual bonus the Executive would have otherwise earned pursuant to Section 4(b) (determined
assuming the Executive met any personal or subjective performance objectives at no less than
target), multiplied by (B) a fraction, the numerator of which will be the number of days elapsed
from the beginning of the annual bonus determination period to the date of termination, and the
denominator of which will be 365; and

(D) The Accrued and Other Obligations.

(iii) Delayed Retirement. Subject to Section 5(h)(v) below, if the Executive’s
employment is terminated due to the Executive’s Delayed Retirement, the Executive shall be provided
with the following:

(A) The benefits described in Section 5(h)(ii) above; and

(B) Any outstanding Plan LTI held by the Executive as of the effective date of his termination
will immediately become fully vested as of such date and, as applicable, remain exercisable for the
period beginning on the effective date of the Executive’s termination and ending on the sooner of
twenty four (24) months from the effective date of the Executive’s termination, the latest date
upon which the award would have expired by its original terms if the Executive had remained
employed indefinitely or the 10th anniversary of the original date of grant of the award;

(iv) For purposes of this Agreement, (A) “Retirement” means any voluntary termination by the
Executive of his employment on or after December 31, 2010 and before June 30, 2012, or a
termination by the Company for Cause on or after December 31, 2010 and before June 30, 2014, and
(B) “Delayed Retirement” means any voluntary termination by the Executive of his employment on or
after June 30, 2012, or any termination by the Company for any reason on or after June 30, 2014;
provided that if the Company gives the Executive a notice of non-renewal of the Initial Term, any
Renewal Term or the Change in Control Term pursuant to Section 5(a), the Executive’s employment may
continue at-will until terminated or shall terminate upon the expiration of the Term and such
termination shall be deemed to be a “Delayed Retirement” for purposes of this Agreement. For the
avoidance of doubt, termination of the Executive’s at-will employment following non-renewal of this
Agreement shall constitute a “Delayed Retirement” for purposes of the Executive’s rights to the
Capstone Award, Incremental Capstone and the benefits described in Section 5(h)(iii), each of such
rights, together with the right to earn any outstanding Cash LTI (as described in Section
4(i)(iv)), surviving the Term of this Agreement.

(v) The Company shall not be obligated to pay or provide to the Executive any benefits or
payments under Section 5(h)(ii) or (iii) (as applicable, the “Retirement Benefits”) due and owing
to him on or after the date that he willfully and materially breaches Section 7 and/or Section 8 of
this Agreement; provided, however, that before the Company ceases paying or providing any such
Retirement Benefits, the Company shall give the Executive written notice of the event or events
giving rise to such forfeiture and no less than twenty (20) days to cure and if the Executive cures
such event or events, the Retirement Benefits shall continue to be paid or provided as set forth
herein. Whether the Executive has willfully and materially breached Section 7 and/or Section 8
shall be subject to de novo review in accordance with Section 18 below. Also, no Retirement
Benefits shall be paid to the Executive until he executes and delivers to the Company, and does not
revoke in the time period provided therein, the release attached hereto as Exhibit A. Upon the
Executive delivering and not revoking such Release, DFG and DFC agree to execute and promptly
deliver the Release attached hereto as Exhibit B to the Executive. If the Executive delivers and
does not revoke the Release in the time period provided therein, the Retirement Benefits shall be
due and payable to him; provided, however, that such Release shall not be effective as a release of
claims until the Company delivers the Release attached hereto as Exhibit B to the Executive. The
parties hereto acknowledge that the Retirement Benefits to be provided under this Section 5(h) is
to be provided in consideration for the above-specified release. The Retirement Benefits described
in this Section 5(h) supersedes any other severance payment provided by any Company policy, plan or
practice. Therefore, the Executive acknowledges and agrees that he is not eligible to receive any
severance payment under any other Company severance policy, plan or practice.

(i) Termination by Executive for “Good Reason”. Subject to the provisions outlined
below, at any time after the date the Executive commences employment under this Agreement, upon
thirty (30) days’ written notice to the Company and no later than one hundred and twenty (120) days
after the occurrence of any event giving rise to “Good Reason” (as defined below), the Executive
shall have the right to terminate his employment under this Agreement for Good Reason. Such
termination shall constitute the Executive’s resignation from the Boards. For purposes of this
Agreement, “Good Reason” shall mean the occurrence of any of the following events without either
the Executive’s prior express written consent or full cure by the Company within thirty (30) days
after the Executive gives written notice to the Company describing the event and requesting cure:

(i) any material diminution in the Executive’s authorities, titles or offices, including,
without limitation, any authorities set forth in Section 3(b) above;

(ii) any change in the reporting structure so that Executive reports to someone other than the
Board of DFG as Chief Executive Officer of DFG or to the Board of DFC as Chief Executive Officer of
DFC;

(iii) any material diminution in the Executive’s Base Salary, Target Bonus opportunity as a
percentage of Base Salary or maximum bonus opportunity as a percentage of Base Salary as set forth
in Section 4(b) above, or LTI Award opportunity as a percentage of Base Salary as set forth in
Section 4(i);

(iv) failure to appoint or elect (or re-elect) the Executive as a member of the Board of DFC
and DFG and as CEO of DFC and DFG or removal of the Executive from any such position;

(v) failure of the Executive to be the sole senior most executive officer of the Company or,
following a Change in Control (as defined in Section 5(a) hereof), failure of the Executive to be a
member of the Board and CEO of the successor entities (including, without limitation, the ultimate
parent of such entity);

(vi) any material breach by DFG, DFC or any of their affiliates, of this Agreement, including
a failure by the Company to pay, grant or provide the Executive any amount, entitlement or benefit
under this Agreement within 90 days of the date it should have been paid, granted or provided; or

(vii) the dissolution or liquidation of DFG or DFC or any failure of DFG or DFC to obtain the
assumption in writing of its obligation to perform this Agreement by any successor to all or
substantially all of its assets at the time of the merger, consolidation, sale or similar
transaction, except where such assumption occurs by operation of law.

Delivery by the Company to the Executive of a notice of non-renewal of the Initial Term or any
Renewal Term pursuant to Section 5(a) shall in no event give the Executive the right to terminate
his employment under this Agreement for Good Reason. Unless otherwise provided by this Section 5,
all compensation and benefits paid by the Company to the Executive shall cease upon his last day of
employment. If the Executive terminates his employment for Good Reason on or within 2 years
following a change in control (as defined in Section 5(j) of this Agreement), then the Executive
shall receive the compensation and benefits set forth in Section 5(j) applicable to termination of
the Executive’s employment in relation to a Change in Control, subject to the Executive executing
and delivering to the Company the Release attached hereto as Exhibit A and not revoking the Release
within the time period provided therein. If the Executive terminates his employment for Good
Reason otherwise than in connection with a Change in Control, then the Executive shall, subject to
the conditions set forth in last paragraph of Section 5(e) applicable to Severance Compensation
(relating to the execution and non-revocation of the Release and satisfaction of his obligations
under Section 7 and Section 8), receive the compensation and benefits set forth in Section 5(e)
applicable to termination of the Executive’s employment by the Company without Cause. In both
cases, upon the Executive delivering and not revoking such Release, DFG and DFC agree to execute
and promptly deliver the Release attached hereto as Exhibit B to the Executive. If the Executive
delivers and does not revoke the Release in the time period provided therein, the applicable
benefits described in this Section 5(i) shall be due and payable to him; provided, however, that
such Release shall not be effective as a release of claims until the Company delivers the Release
attached hereto as Exhibit B to the Executive.

(j) Termination Without Cause in Connection with a “Change of Control.” In the event
that on or within Twenty Four (24) months following a change of control, (with this time period
being referred to as the “Change of Control Period”), the Executive’s employment with the Company
is either (a) terminated by the Company without Cause, or (b) terminated by the Executive for “Good
Reason”, the Executive shall be entitled to the severance benefits provided for in Section 5(e) of
this Agreement, subject to the conditions set forth in last paragraph of Section 5(e) applicable to
Severance Compensation (relating to the execution and non-revocation of the Release and
satisfaction of his obligations under Section 7 and/or Section 8); provided, however, that in lieu
of the benefit described in Section 5(e)(i) and 5(e)(ii), the Executive shall be entitled to a cash
lump sum payment equal to two (2) times the sum of his Base Salary and Target Bonus, payable within
60 days following the date of the Separation From Service, with such payment date within the
Company’s sole discretion. Upon the Executive delivering and not revoking such Release, DFG and
DFC agree to execute and promptly deliver the Release attached hereto as Exhibit B to the
Executive. If the Executive delivers and does not revoke the Release in the time period provided
therein, the benefits described in this Section 5(j) shall be due and payable to him; provided,
however, that such Release shall not be effective as a release of claims until the Company delivers
the Release attached hereto as Exhibit B to the Executive. For purposes of this Section 5(j),
“change in control” shall mean a Change in Control as defined below in Section 5(a), provided that
such Change in Control constitutes a change in the ownership or effective control of DFC or DFG (or
both), or a change in the ownership of a substantial portion of the assets of DFC or DFG, in each
case within the meaning of Treas. Reg. § 1.409A-3(i)(5). The enhanced Severance Compensation
described in this Section 5(j) supersedes any other severance payment provided by any Company
policy, plan or practice. Therefore, the Executive shall be disqualified from receiving any
severance payment under any other Company severance policy, plan or practice. Unless otherwise
provided by this Section 5, all compensation and benefits paid by the Company to the Executive
shall cease upon his last day of employment.

(k) Section 280G of the Code.

(i) Gross-Up Payment. If the Total Payments would result in the imposition of a
Parachute Excise Tax on the Executive, the Company will make an additional payment to the Executive
in an amount (“Gross-Up Payment”) such that, after the payment of all taxes (including, without
limitation, federal, state and local income, employment, excise and other similar taxes) on both
the Total Payments and the additional payment made pursuant to this Section 5(k)(i), the Executive
will be in the same after-tax position as if no Parachute Excise Tax had been imposed.
Notwithstanding any other provision of this Agreement, no additional payment will be made to the
Executive pursuant to this Section 5(k)(i), and the Total Payments will instead be reduced or
limited to the Capped Amount, if the additional payment described in the preceding sentence would
not cause the Total After-Tax Payments to exceed the Capped Amount (after reduction for all
applicable taxes) by more than 10%; provided, however, any reduction to Total Payments shall be
made first to any cash severance. Any Gross-Up Payment, as determined pursuant to this Section
5(k), shall be timely paid by the Company on behalf of the Executive directly to the appropriate
taxing authorities but in all events no later than the last day of the calendar year after the
calendar year in which the applicable Parachute Excise Tax shall be paid.

(ii) Measurements and Adjustments. The determination of whether the aggregate
payments, benefits, entitlements or distributions made or provided to the Executive under this
Agreement and under all other plans, programs and agreements of the Company (or any entity
effecting the Change in Control) constitutes Total Payments and, if so, the amount to be paid to
the Executive and the time of payment pursuant to this Section 5(k) shall be made by an independent
auditor (the “Auditor”) selected by the Parties. The Auditor shall be a nationally recognized
United States public accounting firm which has not, during the two years preceding the date of its
selection, acted in any way on behalf of the Company or any affiliate thereof. If the Executive
and the Company cannot agree on the firm to serve as the Auditor, then the Executive and the
Company shall each designate one accounting firm and those two firms shall jointly select the
accounting firm to serve as the Auditor. All fees and expenses of the Auditor shall be borne
solely by the Company. Any determination by the Auditor shall be binding upon the Company and the
Executive, except as described in the next paragraph.

(iii) Underpayment or Overpayment. As a result of uncertainty in the application of
Sections 280G and 4999 of the Internal Revenue Code of 1986, as amended from time to time, at the
time of the initial determination by the Auditor hereunder, it is possible that the Gross-Up
Payment made will have been an amount more than the Company should have paid pursuant to this
Section 5(k)(i) (the “Overpayment”) or that the Gross-Up Payment made will have been an amount less
than the Company should have paid pursuant to this Section 5(k)(i) (the “Underpayment”). In the
event that there is a final determination by the Internal Revenue Service, or a final determination
by a court of competent jurisdiction, that an Overpayment has been made, any such Overpayment shall
repaid to the Company by the Executive within 30 days of such determination. In the event that
there is a final determination by the Internal Revenue Service, or a final determination by a court
of competent jurisdiction, any such Underpayment shall be promptly paid by the Company to or for
the benefit of the Executive together with interest at the applicable Federal rate provided for in
Section 7872(f)(2) of the Code, within 30 days of such determination. The Executive shall notify
the Company in writing of any claim by the Internal Revenue Service that, if successful, would
result in an Underpayment and would require the payment by the Company of an additional Gross-Up
Payment. Such notification shall be given as soon as practicable but no later than ten business
days after the Executive is informed in writing of such claim and shall apprise the Company of the
nature of such claim and the date on which such claim is requested to be paid. The Executive shall
not pay such claim prior to the expiration of the 30 calendar day period following the date on
which the Executive gives such notice to the Company (or such shorter period ending on the date
that any payment of taxes with respect to such claim is due). If the Company notifies the
Executive in writing prior to the expiration of such period that it desires to contest such claim,
the Executive shall:

(A) give the Company any information reasonably requested by the Company relating to
such claim,

(B) take such action in connection with contesting such claim as the Company shall
reasonably request in writing from time to time, including, without limitation, accepting
legal representation with respect to such claim by an attorney reasonably selected by the
Company,

(C) cooperate with the Company in good faith in order effectively to contest such
claim, and

(D) permit the Company to participate in any proceeding relating to such claim;
provided, however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such contest and
shall indemnify and hold the Executive harmless, on an after-tax basis, for any Parachute
Excise Tax or income or employment tax (including interest and penalties with respect
thereto) imposed as a result of such proceeding and payment of costs and expenses; with any
such payment being timely paid by the Company on behalf of the Executive directly to the
appropriate taxing authorities but in all events Executive shall be paid the amounts due
pursuant to this provision no later than the last day of the year following the year in
which the taxes that are the subject of the proceeding or claim are remitted to the taxing
authority, or if no taxes are due as result of any such proceeding or claim, the end of the
year following the year in which the proceeding or claim is completed or settled.

(iv) Definitions. For purposes of this Agreement:

(A) The term “Total Payments” means the total of all “parachute payments” (as that term is
defined in Section 280G(b)(2) of the Code, but determined without regard to Section
280G(b)(2)(A)(ii)) made to or for the benefit of the Executive, whether made under this Agreement
or otherwise (including any payments, entitlements or benefits made or provided to the Executive
(or on his behalf) by the entity effecting the change in control);

(B) The term “Total After-Tax Payments” means the total value of all “parachute payments” (as
that term is defined in Section 280G(b)(2) of the Code) made to or for the benefit of the Executive
(whether made under this Agreement or otherwise) (including any payments, entitlements or benefits
made or provided to the Executive (or on his behalf) by the entity effecting the change in
control), after reduction for all applicable taxes (including, without limitation, the Parachute
Excise Tax);

(C) The term “Parachute Excise Tax” means the federal excise tax levied on certain “excess
parachute payments” under Section 4999 of the Code or any successor provision; and

(D) The term “Capped Amount” means the largest amount payable to the Executive without causing
the application of a Parachute Excise Tax.

For the avoidance of doubt, this Section 5(k) applies without regard to whether the
Executive’s employment has been terminated.

(l) Section 409A. Notwithstanding anything to the contrary in this Agreement or
elsewhere, if Executive is a “specified employee” as determined pursuant to Section 409A of the
Code as of the date of Executive’s Separation From Service and if any payment or benefit provided
for in this Agreement or otherwise both (x) constitutes a “deferral of compensation” within the
meaning of Section 409A and (y) cannot be paid or provided in the manner otherwise provided without
subjecting Executive to “additional tax”, interest or penalties under Section 409A, then any such
payment or benefit that is payable during the first six months following Executive’s Separation
From Service shall be paid or provided to Executive in a cash lump-sum, with interest at LIBOR, on
the first business day of the seventh calendar month following the month in which Executive’s
Separation From Service occurs. In addition, any payment or benefit due upon a termination of
Executive’s employment that represents a “deferral of compensation” within the meaning of Section
409A shall only be paid or provided to Executive upon a Separation From Service (as defined in
Section 5(b) above). Notwithstanding anything to the contrary in this Section 5 or elsewhere, any
payment or benefit under this Section 5, or otherwise, that is exempt from Section 409A pursuant to
Final Treasury Regulation 1.409A-1(b)(9)(v)(A) or (C) shall be paid or provided to Executive only
to the extent that the expenses are not incurred, or the benefits are not provided, beyond the last
day of the second taxable year of Executive following the taxable year of Executive in which the
Separation From Service occurs; and provided further that such expenses are reimbursed no later
than the last day of the third taxable year following the taxable year of Executive in which the
Separation From Service occurs. Finally, for the purposes of this Agreement, amounts
payable under Section 5 shall be deemed not to be a “deferral of compensation” subject to Section
409A to the extent provided in the exceptions in Treasury Regulation Sections 1.409A-1(b)(4)
(“short-term deferrals”) and (b)(9) (“separation pay plans,” including the exception under
subparagraph (iii)) and other applicable provisions of Treasury Regulation Section 1.409A-1 through
A-6.

(m) Continuing Obligations. The Executive acknowledges and agrees that the
non-competition and non-solicitation restrictions set forth in Sections 7 and 8 of this Agreement
will remain in full force and effect for a period of twenty four (24) months following the
termination of his employment for any reason. Furthermore, the obligations imposed on the
Executive with respect to confidentiality, non-disclosure and assignment of rights to inventions or
developments in this Agreement shall continue, notwithstanding the termination of the employment
relationship between the parties.

(n) Stock Retention. The Executive agrees to retain ownership of a number of shares
of DFC common stock, or DFC common stock that is subject to any of the Executive’s vested and
outstanding options, restricted stock units or stock appreciation rights, at least equal to the
number of such shares granted pursuant to the equity award described in Section 5(g) until the
earliest of (i) the first anniversary of his Retirement or Delayed Retirement, (ii) the first
anniversary of his voluntary termination of employment that is not a Retirement or Delayed
Retirement, (iii) the first anniversary of his termination of employment by the Company for Cause,
(iv) a Change in Control, (v) Executive’s death and (vi) the termination of Executive’s employment
by the Company without Cause or due to Disability, or by the Executive with Good Reason.

6. Company Property. All correspondence, records, documents, software, promotional materials,
and other Company property, including all copies, which come into the Executive’s possession by,
through or in the course of his employment, regardless of the source and whether created by the
Executive, are the sole and exclusive property of the Company, and immediately upon the termination
of the Executive’s employment, or at any time the Company shall request, the Executive shall return
to the Company all such property of the Company, without retaining any copies, summaries or
excerpts of any kind or in any format whatsoever. The Executive further agrees that should he
discover any Company property or Confidential Company Information in his possession after the
return of such property has been requested, the Executive agrees to return it promptly to Company
without retaining copies, summaries or excerpts of any kind or in any format whatsoever. Anything
to the contrary notwithstanding, the Executive shall be entitled to retain (a) papers and other
materials of a personal nature, including, but not limited to, correspondence, personal diaries,
calendars and Rolodexes, personal files, phone books and, only to the extent set forth on Schedule
1 attached hereto, photographs and artwork, (b) information showing his compensation and relating
to reimbursement of expenses, (c) information that he reasonably believes may be needed for tax
purposes, (d) copies of plans, programs and agreements relating to his employment or termination
thereof, with the Company and (e) minutes, presentation materials and personal notes from any
meeting of the Board of DFG or DFC, or any committee thereof, while he was a member of such Board.

7. Non-Competition. In consideration of the compensation and other benefits to be paid to the
Executive pursuant to this Agreement, the Executive agrees that he will not, without prior written
consent of the Board of DFC, during the Term and for a period of twenty four (24) months after his
termination of employment for any reason:

(a) directly or indirectly engage in the United States, Canada or any other country in which
Company or any affiliate or subsidiary now or hereafter during the Executive’s period of
employment, conducts business, in any activity which, or any activity for any enterprise or entity
a material part of the business of which, is competitive with the business conducted by Company at
the time of termination or any business that the Company had active and bona fide plans to engage
in at the effective date of the Executive’s termination of employment with the Company, either as
an officer, director, employee, independent contractor or as a 2% or greater owner, partner, or
stockholder in a publicly traded entity (“Competitive Business”); or

(b) directly or indirectly cause or request a curtailment or cancellation of any significant
business relationship that Company, or any affiliate or subsidiary of the Company, has with a
current or prospective vendor, business partner, supplier or other service or goods provider that
would have a material adverse impact on the business of Company, its affiliates or subsidiaries.

Notwithstanding the foregoing, the Executive shall not be deemed to be in breach of this Section 7
if he provides services to (or engages in activities involving): (x) a subsidiary, division or
affiliate of a Competitive Business and the subsidiary is not itself engaged in a Competitive
Business and the Executive does not provide services to, or have any responsibilities regarding,
the Competitive Business, (y) any entity which is, or is a general partner in, or manages or
participates in managing, a private or public fund (including, without limitation, a hedge fund),
or other investment vehicle, that is engaged in venture capital investments, leveraged buy-outs, or
investments in public or private companies at the mezzanine equity or debt level, or in other forms
of private or alternative equity transactions, or in public equity transaction, which might make
investment which the Executive could not make directly provided that in connection therewith the
Executive does not provide services to, engage in activities involved, or have any responsibilities
regarding any Competitive Business, or (z) any board of which he is a member as of the effective
date of his termination of employment with the Company. Except as otherwise provided in this
Section 7, there are no other contractual restrictions on the activities the Executive can be
involved in following termination of his employment with the Company and, in the event of any
conflict between the provisions of this Section 7 and the provisions of any other plan, policy,
program, arrangement or other agreement with the Company or any affiliate, the provisions of
Section 7 shall control.

8. Non-Solicitation.

(a) During the Executive’s employment with the Company and for twenty four (24) months after
termination of his employment for any reason, the Executive will not, directly or indirectly, on
his own behalf or on behalf of any third party, (i) target, recruit, solicit or induce, or attempt
to induce, any employees of the Company, or any affiliate or subsidiary of the Company, to
terminate their employment with, or otherwise cease their relationship with, the Company, affiliate
or subsidiary, as applicable (provided nothing shall prevent the Executive from providing a
personal reference for any employee); or (ii) solicit, divert, reduce, take away, or attempt to
divert, reduce or take away, the business or patronage (with respect to products or services of the
kind or type developed, produced, marketed, furnished or sold by the Company, or any affiliate or
subsidiary of the Company, with which the Executive was substantively involved during the course of
his employment with the Company) of any of the Company’s, its affiliates’ or subsidiaries’ (A)
clients, customers, franchisees, or accounts, or (B) prospective clients, customers, franchisees or
accounts, that were contacted or solicited by the Executive within six (6) months prior to the date
his employment with the Company terminated.

(b) The Executive acknowledges and understands that, in the event of a breach or threatened
breach of this provision by the Executive, the Company may suffer irreparable harm and will
therefore be entitled to injunctive relief to enforce this provision, which shall be in addition to
any other remedies available to it. Except as otherwise provided in this Section 8, there are no
other contractual restrictions on the Executive soliciting, recruiting or hiring employees or
having contact with clients, customers, franchisees or accounts (prospective or actual) following
termination of his employment with the Company and, in the event of any conflict between the
provisions of this Section 8 and the provisions of any other plan, policy, program, arrangement or
other agreement with the Company or any affiliate, the provisions of Section 8 shall control.

9. Protection of Confidential Information. The Executive agrees that all information, whether
or not in writing, relating to the business, technical or financial affairs of the Company, its
affiliates and subsidiaries, and that is generally understood in the industry as being confidential
and/or proprietary, is the exclusive property of the Company, affiliates or subsidiaries, as
applicable. The Executive agrees to hold in a fiduciary capacity for the sole benefit of the
Company all secret, confidential or proprietary information, knowledge, data, or trade secret
(“Confidential Information”) relating to the Company or any of its affiliates, subsidiaries, or
their respective clients, which Confidential Information shall have been obtained during his
employment with the Company. The Executive agrees that he will not at any time, either during the
Term of this Agreement or after its termination, disclose to anyone any Confidential Information,
or utilize such Confidential Information for his own benefit, or for the benefit of third parties
without written approval by an officer of the Company. The Executive further agrees that all
intellectual property, business processes, proprietary forms, business plans, customer lists,
memoranda, notes, records, data, schematics, sketches, computer programs, prototypes, proprietary
franchise circulars or similar materials, or written, photographic, magnetic or other documents or
tangible objects compiled by the Executive or made available to the Executive during the Term of
his employment concerning the business of the Company, its affiliates, subsidiaries and/or their
respective clients, including any copies of such materials, shall be the property of the Company,
its affiliates or subsidiaries, as applicable, and, except as otherwise permitted under Section 6
of this Agreement for the Executive to retain such information, shall be delivered to the Company
on the termination of his employment, or at any other time upon request of the Company. Anything
to the contrary notwithstanding, the provisions of this Section 9 shall not apply (a) when
disclosure is required by law or by any court, arbitrator, mediator or administrative or
legislative body (including any committee thereof) with actual or apparent jurisdiction to order
the Executive to disclose or make accessible any information, (b) with respect to any other
litigation, arbitration or mediation involving this Agreement or any other agreement between or
among the Executive and DFG, DFC or any of their affiliates, including, without limitation, the
enforcement of such agreements; (c) as to Confidential Information that becomes generally known to
the public or within the relevant trade or industry other than due to the Executive’s violation of
this Section 9; or (d) in connection with any assistance provided by the Executive pursuant to
Section 10(d) below. In the event of a conflict between the provisions of this Section 9 and any
other provision of any plan, policy, program, arrangement or other agreement with DFG, DFC or any
of its affiliates, the provisions of this Section 9 shall control.

10. Intellectual Property.

(a) Disclosure of Inventions. The Executive will promptly disclose in confidence to
the Company all inventions, improvements, processes, products, designs, original works of
authorship, formulas, processes, compositions of matter, computer software programs, Internet
products and services, e-commerce products and services, e-entertainment products and services,
databases, mask works, trade secrets, product improvements, product ideas, new products,
discoveries, methods, software, uniform resource locators or proposed uniform resource locators
(“URLs”), domain names or proposed domain names, any trade names, trademarks or slogans, which may
or may not be subject to or able to be patented, copyrighted, registered, or otherwise protected by
law (the “Inventions”) that the Executive makes, conceives or first reduces to practice or create,
either alone or jointly with others, during the period of his employment, whether or not in the
course of his employment, and whether or not such Inventions are patentable, copyrightable or able
to be protected as trade secrets, or otherwise able to be registered or protected by law.

(b) Work for Hire; Assignment of Inventions. The Executive acknowledges and agrees
that any copyrightable works prepared by him within the scope of his employment are “works for
hire” under the Copyright Act and that the Company will be considered the author and owner of such
copyrightable works. The Executive agrees that all Inventions that (i) are developed using
equipment, supplies, facilities or trade secrets of the Company, (ii) result from work performed by
him for the Company, or (iii) relate to the Company’s business or current or anticipated research
and development, will be the sole and exclusive property of the Company and are hereby irrevocably
assigned by the Executive to the Company from the moment of their creation and fixation in tangible
media.

(c) Assignment of Other Rights. In addition to the foregoing assignment of Inventions
to the Company, the Executive hereby irrevocably transfers and assigns to the Company: (i) all
worldwide patents, patent applications, copyrights, mask works, trade secrets and other
intellectual property rights in any Invention; and (ii) any and all “Moral Rights” (as defined
below) that the Executive may have in or with respect to any Invention. The Executive also hereby
forever waives and agrees never to assert any and all Moral Rights the Executive may have in or
with respect to any Invention, even after termination of his work on behalf of the Company. “Moral
Rights” mean any rights to claim authorship of an Invention, to object to or prevent the
modification of any Invention, or to withdraw from circulation or control the publication or
distribution of any Invention, and any similar right, existing under judicial or statutory law of
any country in the world, or under any treaty, regardless of whether or not such right is
denominated or generally referred to as a “moral right.”

(d) Assistance. The Executive agrees to assist the Company in every proper way to
obtain for the Company and enforce patents, copyrights, mask work rights, trade secret rights and
other legal protections for the Company’s Inventions in any and all countries. The Executive will
execute any documents that the Company may reasonably request for use in obtaining or enforcing
such patents, copyrights, mask work rights, trade secrets and other legal protections. His
obligations under this section will continue beyond the termination of his employment with the
Company, provided that the Company will compensate him at a reasonable rate after such termination
for time (with such payment to be made within 30 days of the Executive providing such assistance)
or expenses actually spent by him at the Company’s request on such assistance; provided such
expenses shall be paid to the Executive promptly but in no event later that the end of the calendar
year following the calendar year in which they are incurred. The Executive appoints the Secretary
of the Company as his attorney-in-fact to execute documents on his behalf for this purpose.

11. Injunctive Relief. The Executive understands that, in the event of a breach or threatened
breach of this Agreement by the Executive, the Company may suffer irreparable harm and will
therefore be entitled to injunctive relief, without prior notice to the Executive and without the
posting of a bond or other guarantee, to enforce this Agreement. This provision is not a waiver of
any other rights which the Company may have under this Agreement as well as to any other remedies
available to it, including money damages.

12. Publicity. Neither Party shall issue, without consent of the other Party, any press
release or make any public announcement with respect to this Agreement or the employment
relationship between them. Following the termination of the Executive’s employment hereunder and
regardless of any dispute that may arise in the future, the Executive and the Company jointly and
mutually agree that they will not intentionally disparage, criticize or make statements which are
negative, detrimental or injurious to the other to any individual, company or client, including
within the Company. Anything to the contrary notwithstanding, the provisions of this Section 12
shall not prevent any person from (a) responding to incorrect, disparaging or derogatory statements
made by the other Party to the extent reasonably necessary to correct or refute such statement or
(b) making any truthful statement to the extent (i) necessary with respect to any litigation,
arbitration or mediation involving this Agreement or any other agreement between or among the
Executive and DFG, DFC or any of their affiliates, including, without limitation, the enforcement
of such agreements or (ii) required by law or by any court, arbitrator, mediator or administrative
or legislative body (including any committee thereof) with actual or apparent jurisdiction to order
such person to disclose or make accessible such information.

13. Binding Agreement. This Agreement shall be binding upon and inure to the benefit of the
parties hereto, their heirs, personal representatives, successors and assigns. In the event that
either DFG or DFC is acquired, is a non surviving party in a merger, or transfers substantially all
of its assets, this Agreement shall not be terminated and the transferee or surviving company shall
be bound by the provisions of this Agreement. The parties understand that the obligations of the
Executive are personal and may not be assigned by him, except to the extent permitted by applicable
law, the laws of descent or pursuant to any applicable plan, policy, program, arrangement or
agreement with DFG, DFC or any of their affiliates. If the Executive should die when any amount or
entitlement is due and owing to him under this Agreement or otherwise, such amount or entitlement
shall be paid or provided to his designated beneficiary (or if he has not designated a beneficiary,
to his estate).

14. Entire Agreement. This Agreement contains the entire understanding of the Executive and
the Company with respect to the subject matter hereof and supersedes any and all prior
understandings, written or oral, with respect thereto, including without limitation the Prior
Agreement. This Agreement may be amended, waived, discharged or terminated only by an instrument
in writing, specifically identified as an amendment to, or waiver, discharge or termination of,
this Agreement, and signed by the Executive and DFC. By entering into this Agreement, the
Executive certifies and acknowledges that he has carefully read all of the provisions of this
Agreement, that he has been afforded ample opportunity to obtain independent advice and evaluation,
that he has relied upon such independent counsel and not upon any representation, statement or
advice (legal or otherwise) said or offered by the Company, and that he voluntarily and knowingly
enters into said Agreement. In the event of any inconsistency between any provision of this
Agreement and any provision of any plan, policy, program, arrangement or other agreement of DFG,
DFC or any of their affiliates, the provisions of this Agreement shall govern. For the avoidance
of doubt, any action by DFC (including, without limitation, any consent to any amendment or waiver
of any provision of this Agreement) shall be deemed to an action by the Company. In addition, any
notice to DFC by the Executive shall be deemed to be a notice to the Company.

15. Severability. Any provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be deemed severable from the remainder of this
Agreement, and the remaining provisions contained in this Agreement shall be construed to preserve
to the maximum permissible extent the intent and purposes of this Agreement.

16. Governing Law and Submission to Jurisdiction. This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the Commonwealth of Pennsylvania, without
giving effect to the principles of conflicts of law thereof.

17. Notices. Any notice provided for in this Agreement shall be provided in writing. Notices
shall be effective from the date of service, if served personally on the party to whom notice is to
be given, or on the second day after mailing, if mailed by first class mail, postage prepaid or by
a nationally recognized courier service. Notices shall be properly addressed to the parties at
their respective addresses identified below or to such other address as either party may later
specify by notice to the other to the addresses below:

To Executive, to the address on file with the Company from time to time,

With a copy to:

Colleen Westbrook, Esq.

Morrison Cohen LLP

909 Third Avenue, 27th Floor

New York, NY 10022

To the Company:

Dollar Financial Group, Inc.

Daylesford Plaza

1436 Lancaster Avenue Suite 210

Berwyn, PA 19312

Attn: Chairman of the Human Resources and Compensation Committee

With a copy to:

Barry M. Abelson, Esq.

Pepper Hamilton LLP

3000 Two Logan Square

Eighteenth and Arch Streets

Philadelphia, PA 19103

18. Venue. All legal actions arising under this Agreement will be settled by arbitration in
Philadelphia, Pennsylvania, in accordance with the Commercial Arbitration Rules of the American
Arbitration Association, using one arbitrator, and judgment upon the award rendered by the
arbitrator may be entered in any court of competent jurisdiction.

19. Indemnification. (a) DFG and DFC each agree that if the Executive is made a party to, is
threatened to be made a party to, receives any legal process in, or receives any discovery request
or request for information in connection with, any action, suit or proceeding, whether civil,
criminal, administrative or investigative (a “Proceeding”), by reason of the fact that he is or was
a director, officer, employee, consultant or agent of DFG or DFC, as the case may be, or is or was
serving at the request of, or on behalf of, either DFG or DFC as a director, officer, member,
employee, consultant or agent of another corporation, limited liability corporation, partnership,
joint venture, trust or other entity, including service with respect to employee benefit plans,
whether or not the basis of such Proceeding is the Executive’s alleged action in an official
capacity while serving as a director, officer, member, employee, consultant or agent of DFG, DFC or
other entity, the Executive shall be indemnified and held harmless by DFG and DFC to the fullest
extent permitted or authorized by its certificate of incorporation or by-laws or, if greater, by
applicable law, against any and all costs, expenses, liabilities and losses (including, without
limitation, attorneys’ fees reasonably incurred, judgments, fines, ERISA excise taxes or penalties
and amounts paid or to be paid in settlement and any reasonable cost and fees incurred in enforcing
his rights to indemnification, contribution or advancement of expenses) incurred or suffered by the
Executive in connection therewith, and such indemnification shall continue as to the Executive even
though he has ceased to be a director, officer, member, employee, consultant or agent of DFG, DFC
or other entity and shall inure to the benefit of the Executive’s heirs, executors and
administrators. The Company shall reimburse the Executive for all costs and expenses (including,
without limitation, reasonable attorneys’ fees) incurred by him in connection with any Proceeding
within 20 business days after receipt by the Company of a written request for such reimbursement
and appropriate documentation associated with these expenses. Such request shall include an
undertaking by the Executive to repay the amount of such advance if it shall ultimately be
determined that he is not entitled to be indemnified against such costs and expenses.

(b) Neither the failure of DFG or DFC (including its Board, independent legal counsel or
stockholders) to have made a determination prior to the commencement of any proceeding concerning
payment of amounts claimed by the Executive under Section 19(a) above that indemnification of the
Executive is proper because he has met the applicable standard of conduct, nor a determination by
DFG or DFC (including its Board, independent legal counsel or stockholders) that the Executive has
not met such applicable standard of conduct, shall create a presumption or inference that the
Executive has not met the applicable standard of conduct.

(c) DFG and DFC each agree to continue and maintain a directors’ and officers’ liability
insurance policy covering the Executive at a level, and on terms and conditions, no less favorable
to him than the coverage it provides its directors, or if greater, its senior executives until such
time as suits against the Executive are no longer permitted by law.

(d) Nothing in this Section 19 shall be construed as reducing or waiving any right to
indemnification, advancement of expenses or coverage under any directors’ and officers’ liability
insurance policies the Executive would otherwise have under DFG’s or DFC’s certificate of
incorporation or by-laws, pursuant to any other agreement with any Party hereto or under applicable
law.

20. Attorneys’ Fees and Expenses. In the event of any arbitration or litigation between or
among the Executive and DFG and/or DFC (or any of their affiliates) concerning this Agreement or
any other agreement relating to compensation covered by this Agreement, the prevailing party shall
be entitled to payment by the other party of its costs and expenses (including reasonable legal
fees) in an amount not to exceed $75,000. In connection with the execution of this Agreement, the
Company shall promptly following execution of this Agreement reimburse the Executive for his
reasonable attorneys’ fees incurred in connection herewith in an amount not to exceed $25,000. The
amount of expenses eligible for reimbursement under this Section 20 during any calendar year will
not affect the amount of expenses eligible for reimbursement in any other calendar year, such
reimbursements for expenses shall be made in all events no later than the last day of the calendar
year following the calendar year in which the applicable expense is incurred.

21. No Mitigation. If an event triggering the Executive’s termination of employment occurs,
the Executive need not seek other employment or attempt in any way to reduce the amount of any
payments, benefits or entitlements due to the Executive by the Company under this Agreement. The
amount of any payments, benefits or entitlements due to the Executive under this Agreement shall
not be reduced by any compensation earned by the Executive as the result of any other employment,
consulting relationship or other business activity or engagement post-termination.

22. No Set-off. Except as otherwise specifically set forth in this Agreement, the Company’s
obligations under this Agreement are absolute and unconditional, and not subject to any set-off,
counterclaim, recoupment, defense or other right that the Company may have against the Executive.

23. Company Successors. In addition to any obligations imposed by law upon any successor to
the Company, the Company shall require any successor to all or substantially all of the Company’s
business or assets (whether direct or indirect, and whether by purchase, reorganization, merger,
share exchange, consolidation, or otherwise) to expressly assume and agree to perform the Company’s
obligations under this Agreement to the same extent, and in the same manner, as the Company would
be required to perform if no such succession had occurred. This Agreement shall be binding upon,
and inure to the benefit of, any successor to the Company.

24. Withholding. All payments (or transfers of property) to the Executive will be subject to
tax withholding in accordance with applicable law.

25. Survivability of Agreement. Upon expiration or termination of the Term of this Agreement,
the respective rights and obligations of the Parties shall survive such expiration to the extent
necessary to carry out the intentions of the Parties as embodied in the rights (such as vested
rights) and obligations of the Parties under this Agreement. This Agreement shall continue in
effect until there are no rights or obligations of the Parties outstanding hereunder and shall not
be terminated by either Party without the express prior written consent of both Parties.

26. Miscellaneous.

(a) No delay or omission by either Party in exercising any right under this Agreement shall
operate as a waiver of that or any other right. A waiver or consent given by the Company or the
Executive on any one occasion shall be effective only in that instance and shall not be construed
as a bar or waiver of any right on any other occasion.

(b) The captions of the sections of this Agreement are for convenience of reference only and
in no way define, limit or affect the scope or substance of any section of this Agreement.

(c) The language in all parts of this Agreement will be construed, in all cases, according to
its fair meaning, and not for or against either Party hereto. The Parties acknowledge that each
Party and its or his counsel have reviewed and revised this Agreement and that the normal rule of
construction to the effect that any ambiguities are to be resolved against the drafting party will
not be employed in the interpretation of this Agreement.

(d) This Agreement may be executed, including execution by facsimile signature, in one or more
counterparts, each of which will be deemed an original, and all of which together shall be deemed
to be one and the same instrument

[Signature page follows]

1

IN WITNESS WHEREOF AND INTENDING TO BE LEGALLY BOUND, each of the parties hereto has caused
this Agreement to be duly executed and delivered under seal, by its authorized officers or
individually, on the date first written above.

DOLLAR FINANCIAL GROUP, INC.

      

Randy Underwood

Executive Vice President and

Chief Financial Officer

DOLLAR FINANCIAL CORP.

      

Randy Underwood

Executive Vice President and

Chief Financial Officer

       Jeffrey A. Weiss

2

EXHIBIT A

FORM OF EXECUTIVE RELEASE

This Release (the “Release”) is entered into by Jeffrey A. Weiss as of the date written
below (“Executive”).

Section 1. Termination of Employment. Pursuant to Section 5 of the employment agreement
among Dollar Financial Group, Inc., a New York corporation (together with its successors and
assigns, “DFG”), Dollar Financial Corporation (together with its successors and assigns, “DFC”), a
Delaware corporation, and Executive dated as of October 30, 2009 (the “Employment
Agreement”), Executive’s employment has been terminated without Cause, for Good Reason, upon
Retirement, Delayed Retirement or Disability (as all terms are defined in the Employment
Agreement).

Section 2. Release. (a)  In consideration of the payments set forth in the Employment
Agreement and other good and valuable consideration, Executive, on his own behalf and on behalf of
his spouse, heirs, estate, executors, administrators, successors and assigns (collectively,
“Releasors”), hereby fully, irrevocably and unconditionally releases, waives, discharges
and gives up any and all claims which Executive has or may have against DFG and DFC and their
respective parent, subsidiaries, affiliates and divisions (collectively, the “Company”),
and their respective representatives, officers, directors, employees, agents, successors and
assigns (collectively, “Releasees”) relating to or arising out of Executive’s employment
and/or the termination of such employment. This releases Releasees from any and all actions,
demands, causes of action, suits, rights, and/or claims whatsoever for any and all payments and
benefits, debts, sums of money, wages, salary, vacation pay, sick pay, legal fees, damages,
including damages for pain and suffering and emotional harm, arising out of any promise, agreement,
contract, common law, the laws, statutes, and/or regulations of the State of New York or Delaware,
or any other state and the United States, including, but not limited to, federal and state wage and
hour laws, federal and state whistleblower laws, Title VII of the Civil Rights Act of 1964, the
Equal Pay Act, the Americans with Disabilities Act, the Family and Medical Leave Act, the
Employment Retirement Income Security Act, the Fair Labor Standards Act or OSHA, as each may be
amended from time to time, relating to or arising out of Executive’s employment and/or termination
of such employment. This Release releases all such claims up to the date of execution and delivery
of this Agreement by Executive. Notwithstanding anything herein, Executive does not waive or
release claims with respect to (i) any right to enforce this Release or Section 5 of the Employment
Agreement, (ii) any rights to indemnification that Executive may have under the Certificate of
Incorporation, By Laws or equivalent governing documents of DFG, DFC or any affiliate or any
indemnification agreement between Executive and DFG, DFC or any of their affiliates, (iii) any
right to be advanced expenses and any rights to insurance coverage under any directors’ and
officers’ liability insurance policies maintained by DFG, DFC or any of their affiliates for the
benefit of their respective directors and officers, including Executive, in accordance with the
terms of such policies, if any, (iv) any vested rights to receive any benefit under any other
DFG’s, DFC’s or any of their affiliates’ plans, policies, arrangements or other agreements in which
the Executive participated prior to termination, or (v) Executive’s rights as a shareholder of DFG,
DFC or any of their affiliates. Nothing in this Release shall preclude Executive from
(a) participating in any manner in an investigation, hearing or proceeding conducted by the Equal
Employment Opportunity Commission, but Executive hereby waives any and all rights to recover under,
or by virtue of, any such investigation, hearing or proceeding or (b) exercising Executive’s rights
under Section 601-608 of the Employee Retirement Income Security Act of 1974, as amended, popularly
known as COBRA. For the avoidance of doubt, the Executive is not waiving any rights to enforce his
rights under Sections 6 through 26 of the Employment Agreement.

(b) The release of any claims against individuals, representatives or agents shall be limited
to claims relating to such individual’s, representative’s or agent’s work in any capacity for DFG,
DFC or their successors, assigns, parent or affiliates.

Section 3. Construction of Release. In the event that one or more of the provisions
contained in this Release shall for any reason be held unenforceable in any respect under the law
of any state of the United States, such unenforceability shall not affect any other provision of
this Release, but this Release shall then be construed as if such unenforceable provision or
provisions had never been contained herein. This Release shall be governed under the laws of the
Commonwealth of Pennsylvania, without reference to choice of law principles and the state and
federal courts of the Commonwealth of Pennsylvania shall be the sole jurisdiction in which to
resolve any disputes arising out of this Release.

Section 4. Opportunity for Review. EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS READ AND FULLY
UNDERSTANDS THIS RELEASE AND REPRESENTS THAT PRIOR TO SIGNING THIS RELEASE EXECUTIVE HAS BEEN
ADVISED TO, AND HAS HAD AN OPPORTUNITY TO, CONSULT EXECUTIVE’S COUNSEL WITH RESPECT TO THIS RELEASE
AND EXECUTIVE GIVES IT FREELY AND VOLUNTARILY. EXECUTIVE UNDERSTANDS THAT EXECUTIVE HAS BEEN GIVEN
AT LEAST TWENTY-ONE (21) DAYS TO REVIEW THIS RELEASE BEFORE SIGNING IT. EXECUTIVE FURTHER
ACKNOWLEDGES THAT HE IS ENTERING INTO THIS RELEASE, FREELY, KNOWINGLY, AND VOLUNTARILY, WITH A FULL
UNDERSTANDING OF ITS TERMS. EXECUTIVE ALSO ACKNOWLEDGES THAT HE SHALL HAVE 7 DAYS FROM THE DATE HE
SIGNS THIS RELEASE TO REVOKE THE RELEASE BY NOTIFYING DFC’s GENERAL COUNSEL IN WRITING.

IN WITNESS WHEREOF AND INTENDING TO BE LEGALLY BOUND, Executive has signed this Release as of
the date written below.

Jeffrey A. Weiss

Date:       

EXHIBIT B

FORM OF COMPANY RELEASE

This Release (the “Release”) is entered into by Dollar Financial Group, Inc., a New York
corporation (together with its successors and assigns, “DFG”) and Dollar Financial Corporation
(together with its successors and assigns, “DFC”), a Delaware corporation, as of the date written
below and releases Jeffrey A. Weiss (“Executive”).

Section 1. Termination of Employment. Pursuant to Section 5 of the employment agreement
among DFG, DFC and the Executive dated as of October 30, 2009 (the “Employment Agreement”),
Executive’s employment has been terminated without Cause, for Good Reason, upon Retirement, Delayed
Retirement or Disability (as all terms are defined in the Employment Agreement).

Section 2. Release. In consideration of the Executive’s release of claims against DFG, DFC,
their affiliates and related parties, and other good and valuable consideration, DFG and DFC, on
their own behalf and on behalf of their respective subsidiaries and divisions (collectively, the
“Company”), hereby fully, irrevocably and unconditionally releases, waives, discharges and
gives up any and all claims which the Company has or may have against the Executive or his spouse,
dependents, heirs, agents, estate, executors, administrators, successors and assigns relating to or
arising out of Executive’s employment and/or the termination of such employment. This Release
releases Executive and his spouse, dependents, heirs, agents, estate, executors, administrators,
successors and assigns from any and all actions, demands, causes of action, suits, rights, and/or
claims whatsoever for any and all payments and benefits, debts, sums of money, arising out of any
promise, agreement, contract, common law, the laws, statutes, and/or regulations of the State of
New York or Delaware, or any other state and the United States, including any claim for breach of
fiduciary duty. This Release releases all such claims up to the date of execution and delivery of
this Agreement by DFG and DFC. Notwithstanding anything herein, the Company does not waive or
release claims with respect to any right to enforce this Release or Sections 7 through 26 of the
Employment Agreement, or any claim, demand, obligation, or cause of action that is based on any
fraudulent act by the Executive, the Executive’s willful misconduct, or on facts or claims unknown
to the Company on or prior to the date of this Release. A fact or claim shall not be deemed to be
unknown by the Company if any officer or director as of the date of this Release (other than the
Executive) knows, or reasonably should have known, of such fact or claim.

Section 2. Construction of Release. In the event that one or more of the provisions
contained in this Release shall for any reason be held unenforceable in any respect under the law
of any state of the United States, such unenforceability shall not affect any other provision of
this Release, but this Release shall then be construed as if such unenforceable provision or
provisions had never been contained herein. This Release shall be governed under the laws of the
Commonwealth of Pennsylvania, without reference to choice of law principles and the state and
federal courts of the Commonwealth of Pennsylvania shall be the sole jurisdiction in which to
resolve any disputes arising out of this Release.

IN WITNESS WHEREOF AND INTENDING TO BE LEGALLY BOUND, DFG and DFC have signed this Release as
of the date written below.

DOLLAR FINANCIAL GROUP, INC.

       

Name:

Title:

Date:       

DOLLAR FINANCIAL CORP.

      

Name:

Title:

Date:       

3locagreement.htm

Exhibit 10.1 

 

 

July 21, 2009

 

Greenlight Reinsurance, Ltd.

P.O. Box 31110

802 West Bay Road

George Town, Grand Cayman

KY1-1205 Cayman Islands

 

Attn.: Tim Courtis

 

Re:           US$50,000,000 Letter of Credit Facility

 

Gentlemen:

 

We are pleased to confirm that we have established for the account of Greenlight Reinsurance, Ltd. (“Greenlight”) a letter of credit facility (the “Facility”) in a maximum amount of US$50,000,000 (the “Commitment”), available for use by Greenlight until July 20, 2010, as such date may be extended in accordance
with the following sentence (the “Facility Termination Date”).  The Facility Termination Date shall be extended by 364 days beyond the then effective Facility Termination Date unless we or Greenlight delivers a written notice of cancellation to the other party at least 90 days before the then effective Facility Termination Date.  Availments under the Facility shall be in the form of letters of credit (“Letters of Credit”).

 

Each Letter of Credit will be governed by our Application and Agreement for Standby Letter of Credit, a form of which is annexed hereto as Exhibit A (as amended, amended and restated, supplemented or otherwise modified, a “Letter of Credit Agreement”).  Greenlight will be required to pay us the following fees and commissions:
(i) with respect to any issuance, amendment or renewal of each Letter of Credit, $250 per each such issuance, amendment or renewal; (ii) with respect to any draw on a Letter of Credit during any calendar month, $500 per each such draw; (iii) a commission equal to 1.00% per annum of the outstanding amount of each Letter of Credit; and (iv) with respect to the unutilized Commitment,
a commitment fee of 0.25% per annum on the daily unutilized amount of the Commitment, from the date hereof until the Facility Termination Date.  All fees and commissions specified in the preceding sentence shall be payable quarterly in arrears on the last business day of each calendar quarter and on the Facility Termination Date.  Each Letter of Credit shall be
issued solely to support Greenlight’s reinsurance or insurance obligations incurred in its ordinary course of business and shall be for the duration set forth in the applicable Letter of Credit Agreement, but in no event shall the expiration date of any Letter of Credit be more than two years after the date on which it was issued, subject to extensions (not to exceed two years so long as the remaining tenor of such Letter of Credit does not exceed two years at any time) at any time prior to the Facility
Termination Date, provided that no Default or Event of Default (each as defined in the Hypothecation Agreement referred to below) has occurred and is continuing or would occur upon giving effect to the issuance of such Credit.  Letters of Credit may be cancelled at any time, without penalty, upon request by Greenlight and with the applicable beneficiary’s prior written consent.  We agree that, subject to the next succeeding paragraph and, within two Business Days of our receipt and approval
of an Application for Standby Letter of Credit (a form of which is annexed as Exhibit B hereto), duly completed with respect to the Credit (as defined in the Letter of Credit Agreement) requested thereby and executed by Greenlight, we will issue the Credit so long as (i) all representations and warranties in the Hypothecation Agreement are accurate in all material respects as of the date thereof (or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of
such specific date), (ii) no Default or Event of Default has occurred and is continuing or would occur upon giving effect to the issuance of such Credit, (iii) we have received a written certification as to the matters specified in clauses (i) and (ii) hereof and (iv) the issuance of such Credit would not violate any of the policies of BANA (as defined in the Letter of Credit Agreement) as are applicable generally to account parties to, and beneficiaries of, letters of credit issued by BANA.  Letters
of Credit shall be denominated in U.S. Dollars.

 

 

 

 

 

Availability under the Facility will be subject to the Collateral Requirements (as defined in the Hypothecation Agreement) ascribed to the securities and other financial assets pledged by Greenlight as security under the Hypothecation Agreement referred to below.  At all times after the Facility Termination Date or upon the termination
or expiration of the Prime Broker Account Agreement (as defined below), Greenlight shall pledge, under the Hypothecation Agreement, cash collateral in an amount not less than 100% of the outstanding amount of each Letter of Credit having an expiration date occurring after the earlier of the Facility Termination Date and the termination or expiration of the Prime Broker Account Agreement.

 

As a condition to the effectiveness of the Facility, Greenlight shall furnish us with each of the following, each dated as of the date hereof or as of another date satisfactory to us:

 

(a) a hypothecation agreement (the “Hypothecation Agreement”), a form of which is annexed hereto as Exhibit C, duly executed by Greenlight, pledging to us Greenlight’s Prime Brokerage Account number 532-29-315-D2
(the “Account”) maintained by Merrill Lynch Professional Clearing Corp. (“MLPRO”) as security for, among other things, Greenlight’s reimbursement obligations under the Letter of Credit Agreements;

 

(b) a control agreement (the “Control Agreement”), a form of which is annexed hereto as Exhibit D, duly executed by Greenlight and MLPRO;

 

(c) the Letter of Credit Agreement, duly executed by Greenlight;

 

(d) an executed copy of the prime broker account agreement dated June 1, 2009 (the “Prime Broker Account Agreement”) between Greenlight and MLPRO;

 

(e) an agreement with Corporation Service Company providing for it to serve as agent for the service of process under this letter agreement, the Letter of Credit Agreements, the Hypothecation Agreement and the Control Agreement;

 

(f) a certificate of the Secretary of Greenlight certifying:

 

(i) that attached thereto are true and complete copies of:

 

(A) the Amended and Restated Articles of Association of Greenlight;

 

(B) the Amended and Restated Memorandum of Association of Greenlight;

 

(C) the Certificate of Incorporation of Greenlight;

 

(D) the Charges in the Register of Mortgages and Charges maintained by Greenlight;

 

(E) financial statements of Greenlight and Greenlight Capital Re, Ltd., each dated as of December 31, 2008 and March 31, 2009; and

 

(F) resolutions of the board of directors of Greenlight authorizing the officers of Greenlight to enter into transactions like the Facility and the transactions contemplated hereby and thereby generally; and

 

 

 

 

 

 

(ii) the incumbency of the officers of Greenlight authorized to execute and deliver this letter agreement, the Letter of Credit Agreements, the Hypothecation Agreement, the Control Agreement and the documents delivered in connection
herewith and therewith;

 

(g) a Certificate of Good Standing for each of Greenlight and Greenlight Capital Re, Ltd. issued by the Registrar of Companies;

 

(h) a waiver of any restriction under any agreement, instrument or other document to which Greenlight is a party and binding on Greenlight or any of its property that is applicable to the execution or delivery by Greenlight of any Letter
of Credit Agreement, the Hypothecation Agreement or this letter agreement or the performance by Greenlight of its obligations thereunder or hereunder, in form and substance satisfactory to us;

 

(i) documentation and other information sufficient to satisfy our “Know Your Customer” requirements and anti-money laundering rules and regulations; and

 

(j) opinions of New York and Cayman Islands counsel to Greenlight, in form and substance reasonably satisfactory to us.

 

You shall also pay or reimburse us for the costs and reasonable out-of-pocket expenses (including, without limitation, attorneys’ fees and expenses) of the preparation, negotiation, execution and delivery of this letter agreement, the initial Letter of Credit Agreement, the Hypothecation Agreement, the Control Agreement and the agreements
and other documents executed and delivered in connection herewith and therewith.

 

This letter agreement shall be governed by and construed in accordance with the laws of the State of New York (without giving effect to the conflicts of law principles thereof).

 

 

[The remainder of this page is intentionally left blank.]

 

  

  

  

Please acknowledge your acceptance of the terms and conditions hereof by signing this letter agreement in the signature block below.

 

Sincerely,

BANK OF AMERICA, N.A.                                                   

 

	By: 	 /s/ Eugene Rabinovich 	 

 

Eugene Rabinovich

 

Principal

 

 

ACKNOWLEDGED AND ACCEPTED

 

AS OF THE DATE FIRST SET FORTH ABOVE:

 

GREENLIGHT REINSURANCE, LTD.

 

 

	
By: 
	 /s/ Tim Courtis	 

 

	
  
	
Tim Courtis

 

	
  
	
Chief Financial Officer

 

 

	
By: 
	 /s/ Barton Hedges	 

 

	
  
	
Barton Hedges

 

	
  
	
Chief Underwriting Officer

 

  

  

  

HYPOTHECATION AGREEMENT

 

BANK OF AMERICA, N.A.

 

In consideration of the agreement of Bank of America, N.A. (“BANA”) to issue letters of credit (“Letters of Credit”) up to a maximum outstanding amount of $50,000,000 for the account of the undersigned under the letter agreement of even date herewith (as amended, supplemented or otherwise modified from time to time,
the “Facility Agreement”) between the undersigned and BANA, the undersigned hereby agrees:

 

I. That, as security for all indebtedness and other liabilities of the undersigned to BANA arising under or related to (i) the Facility Agreement, (ii) each Application for Standby Letter of Credit and (iii) the Agreement
for Standby Letter of Credit delivered by the undersigned in connection therewith (collectively, the “Letter of Credit Agreements”), whether matured or unmatured, liquidated or unliquidated, absolute or contingent (collectively, the "Obligations"), the undersigned hereby pledges and grants to BANA a lien upon, a security interest in and an assignment of any and all cash, securities and other financial assets and property (as defined below) which at any time have been deposited in or credited to Prime
Broker Account No. 532-29-315-D2 or any successor account (the “Pledged Account”) in the name of the undersigned maintained by Merrill Lynch Professional Clearing Corp. (“MLPRO”) or any successor thereto and any other property in which the undersigned has an interest and that is otherwise at any time in the possession or under the control or recorded on the books of or has been transferred to BANA, or any third party acting on its behalf or designated by it, whether expressly as collateral
or for safekeeping or for any other or different purpose, including (without limitation) any property which may be in transit by mail or carrier for any purpose, or covered or affected by any documents in BANA's possession, or in possession of any such third party, and in any and all property in which the undersigned at any time has rights and in which at any time a security interest has been granted to BANA (all of the foregoing cash, securities and other assets and property, together with any income and distributions
earned or paid thereon (including, without limitation, stock splits), and all proceeds of any of the foregoing being hereafter referred to as the “Pledged Collateral”).  Stock dividends and the distributions on account of any stock or other securities subject to the terms and provisions hereof shall be deemed an increment thereto and included in the Pledged Collateral.

 

II. That BANA shall exercise reasonable care in the custody of any property at any time in its possession or control here­under, or otherwise subject to the terms and provisions hereof, but shall be deemed to have
exercised reasonable care if such property is accord­ed treatment substantially equal to that which BANA accords its own property (it being understood that BANA shall have no responsibility for ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any property and whether or not BANA has or is deemed to have knowledge of such matters), or if BANA takes such action with respect to the property as the undersigned shall reasonably request
in writing and to which BANA consents, but no failure to comply with any such request nor any omission to do any such act requested by the undersigned shall be deemed a failure to exercise reasonable care, nor shall any failure of BANA to take necessary steps to preserve rights against any parties with respect to any property in its possession or control, or otherwise subject to the terms and provisions hereof, be deemed a failure to exercise reasonable care.

 

III. That, so long as any of the Obligations shall remain unpaid, the undersigned will: (a) comply in all material respects with all U.S. and foreign laws, rules, regulations and orders (including, without limitation,
foreign exchange control regulations, U.S. foreign assets control regulations, and other trade-related regulations) now or hereafter applicable to the Letters of Credit and to the transactions applicable to the Letters of Credit or the undersigned’s execution, delivery and performance of its obligations under this Agreement, the Facility Agreement and the Letter of Credit Agreements and deliver to BANA, upon request, reasonably satisfactory evidence of such compliance which shall include, without limitation,
paying before the same become delinquent all taxes, assessments and governmental charges imposed upon the undersigned or the undersigned's property, except to the extent contested in good faith and by appropriate proceedings and for which appropriate reserves are maintained in accordance with generally accepted accounting principles, consistently applied (“GAAP”); (b) furnish or cause to be furnished to BANA, as soon as available and in any event within 120 days after the end of each fiscal year
of the undersigned and Greenlight Capital Re, Ltd. (“Greenlight Capital,” and together with the undersigned, the “Greenlight Entities”), the annual audited consolidated and consolidating balance sheets and statements of income and retained earnings or other comparable financial statements of the Greenlight Entities and their subsidiaries as of the end of or for such fiscal year, which financial statements shall present fairly in all material respects the financial condition and results
of operations of the Greenlight Entities and their subsidiaries as of the end of or for the period covered thereby and which shall be certified by KPMG LLP and its affiliates or other independent public accountants reasonably satisfactory to BANA, together with such other information respecting the condition or operations, financial or otherwise, of the Greenlight Entities  and their subsidiaries as BANA may from time to time request; (c) furnish or cause to be furnished to BANA, as soon as available
and in any event within sixty days after the end of each fiscal quarter of the Greenlight Entities, (i) balance sheets and statements of income, retained earnings and operations of the Greenlight Entities and their subsidiaries for such fiscal quarter and (ii) copies (which may be furnished by electronic mail) of all monthly or quarterly reports provided by the Greenlight Entities to their investors during such quarter; (d) furnish or cause to be furnished to BANA, as soon as available and in any event
within five business days after the same are sent, copies of all reports and other communications that Greenlight Capital sends to all of its shareholders; (e) furnish to BANA, within two business days of the undersigned becoming aware thereof, notice of the occurrence of any Event of Default (as defined below) or any event that with the giving of notice or the passage of time, or both, will become an Event of Default (a “Default”); (f) provide BANA access to the books and financial records of the
Greenlight Entities and their subsidiaries from time to time to inspect and make copies of (at the undersigned's expense, except that, so long as no Event of Default has occurred and is continuing at the time of any such inspection, the undersigned will not be required to pay the expenses of more than one such inspection in any twelve-month period) such books and records at normal business hours and upon prior notice to the undersigned; and (g) maintain a minimum Net Worth (defined as the excess of aggregate
total assets over aggregate total liabilities) of the Greenlight Entities on a consolidated basis of not less than $100,000,000 at all times.  Any such statements, reports, communications, records and other information shall be subject to the confidentiality provisions set forth in the Letter of Credit Agreements.

 

 

 

 

IV. That, so long as any of the Obligations shall remain unpaid, the undersigned will not:  (a) create or suffer to exist any lien, security interest or other charge or encumbrance, or any other type
of preferential arrangement, upon or with respect to the Pledged Account or the Pledged Collateral other than (i) in favor of BANA or (ii) in favor of MLPRO or any of their respective affiliates, so long as such lien, security interest, charge or encumbrance under this clause (ii) is subordinated thereto; (b) create or suffer to exist any Debt other than (i) Debt in favor of BANA, (ii) Debt arising directly under the undersigned’s reinsurance and insurance obligations, surety bonds and financial guaranties
in the ordinary course of business, (iii) Debt arising under hedging obligations of the undersigned entered into in the ordinary course of business including, without limitation, interest rate protection agreements, foreign currency exchange agreements, commodity price protection agreements and other instruments and agreements relating to the undersigned’s hedging obligations, (iv) Debt arising under the undersigned’s other derivative contracts including equity derivatives, options (including
short put and call sales), swaps and contracts for difference, (v) Debt arising under reimbursement agreements with issuers of letters of credit, (vi) Debt arising under any trust or trust account created in accordance with N.Y. Comp. Codes R. & Regs. tit. 11 §§ 126-1 126.8 (2002) (Regulation 114) or in accordance with any other similar law, (vii) Debt secured by margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System) other than margin
stock pledged hereunder, (viii) Debt secured by margin securities (as defined in Regulation T of the Board of Governors of the Federal Reserve System) other than margin securities pledged hereunder, (ix) Debt that may arise from securities agreed to be sold by the undersigned but that are not owned by the undersigned at the time of such agreement to sell, (x) Debt, if any, consisting of accrued portfolio expenses, (xi) Debt owed by the undersigned to affiliates of the undersigned not to exceed
$75,000,000 in the aggregate outstanding at any time so long as such Debt is unsecured and subject to subordination or intercreditor agreements in favor of BANA that are in form and substance reasonably satisfactory to BANA, it being understood that such agreements may permit the payment of regularly scheduled interest on account of such Debt so long as no Event of Default has occurred and is continuing or would occur after giving effect to such payment, (xii) other unsecured Debt of up to $5,000,000 in
the aggregate or (xiii) any existing Debt specified in Schedule 1 hereto; (c) if an Event of Default has occurred and is continuing, pay any dividends on, purchase, redeem or retire any shares of any class of its capital stock or other equity interests or any warrants, options or rights to purchase any such capital stock or other equity interests, whether now or hereafter outstanding (“Stock”), or make any payment on account of or set apart assets for a sinking or other analogous fund for, the
purchase, redemption, defeasance, retirement or other acquisition of any Stock of either Greenlight Entity, or make any distribution in respect thereof, either directly or indirectly, whether in cash or property or in obligations of the undersigned; or (d) if an Event of Default has occurred and is continuing, pay any management, performance or similar fees or compensation to any person or entity.  "Debt" of any person or entity means (A) indebtedness of such person or entity for borrowed money
or for the deferred purchase price of property or services, (B) all obligations of such person or entity evidenced by bonds, notes, debentures or other similar instruments, (C) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such person or entity (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property), (D) all
obligations under leases which shall have been or should be, in accordance with generally accepted accounting principles, recorded as capital leases in respect of which such person or entity is liable as lessee, (E) all Debt referred to in clause (A), (B), (C) or (D) above guaranteed directly or indirectly in any manner by such person or entity, or in effect guaranteed directly or indirectly by such person or entity through an agreement (I) to pay or purchase such Debt or to advance or supply funds
for the payment or purchase of such Debt, (II) to purchase, sell or lease (as lessee or lessor) property, or to purchase or sell services, primarily for the purpose of enabling the debtor to make payment of such Debt or to assure the holder of such Debt against loss, (III) to supply funds to or in any other manner invest in the debtor (including any agreement to pay for property or services irrespective of whether or not such property is received or such services are rendered), or (IV) to otherwise
assure a creditor against loss, and (F) all Debt referred to in clause (A), (B), (C) or (D) above secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by) any lien, security interest or other charge or encumbrance upon or in property (including, without limitation, accounts and contract rights) owned by such person or entity, even though such person or entity has not assumed or become liable for the payment of such Debt.

 

V. That, at all times after the Facility Termination Date (as defined in the Facility Agreement) or the termination or expiration of the Prime Broker Account Agreement dated June 1, 2009 (as amended, amended and
restated, supplemented or otherwise modified from time to time with the prior written consent of BANA, the “Prime Broker Account Agreement”) between the undersigned and MLPRO, the undersigned shall maintain cash on deposit in the Pledged Account in an amount not less than 100% of the amount of the then outstanding Obligations with respect to each Letter of Credit issued by BANA under the Facility Agreement, whether by amendment, extension or renewal of such Letter of Credit or otherwise, which cash
deposit shall be made not later than the earlier of the Facility Termination Date or the termination or expiration of the Prime Broker Account Agreement.

 

VI. That, subject to any and all restrictions on the ability of the undersigned to make withdrawals or transfers of cash or securities from the Pledged Account under the terms of the Prime Broker Account Agreement,
and so long as no Default or Event of Default has occurred and is continuing, the undersigned may withdraw or transfer cash or securities from the Pledged Account, provided that (a) after giving effect to any such withdrawal or transfer, the outstanding amount of the Obligations does not exceed the aggregate value of the Pledged Collateral (as determined in accordance with the Collateral Requirements (as defined below)) of the remaining Pledged Collateral and (b) at all times after the Facility Termination
Date or the termination or expiration of the Prime Broker Account Agreement, the Pledged Collateral shall consist of cash in an amount not less than 100% of the amount of the outstanding Obligations with respect to each Letter of Credit with an expiration date after the earlier of the Facility Termination Date and the termination or expiration of the Prime Broker Account Agreement.

 

 

 

 

VII. The undersigned agrees that it will at all times maintain in the Pledged Account such securities or other assets as BANA or MLPRO, on behalf of BANA, may require in light of the amount and type of the Obligations.  Such
margin requirements shall be set from time to time by BANA or MLPRO, on behalf of BANA, in their sole and absolute discretion and in accordance with the terms and conditions of the Prime Brokerage Account Agreement, subject to the provisions of any Term Margin Agreement in effect from time to time among the undersigned, Merrill Lynch International and MLPRO and applicable law (the “Collateral Requirements”).  For the avoidance of doubt, the value of the Pledged Collateral (as determined
in accordance with the Collateral Requirements) may be in an amount greater than any minimum margin requirements imposed by applicable law.

 

VIII. That the undersigned shall comply with the following requirements:

 

(a) If at any time the outstanding amount of the Obligations exceeds the aggregate margin value of the Pledged Collateral (as determined in accordance with the Collateral Requirements), no Letter of Credit shall be issued until the amount
of the Obligations is less than such aggregate value.  If at any time the outstanding amount of the Obligations exceeds such aggregate margin value of the Pledged Collateral (as determined in accordance with the Collateral Requirements), then, upon notice by BANA (or by MLPRO, on behalf of BANA) to the undersigned of such event, the undersigned shall promptly and, in any event, within one business day, cause a reduction in the outstanding amount of the Obligations, deposit additional Pledged Collateral
into the Pledged Account or change the composition of the Pledged Collateral so as to increase the value of the Pledged Collateral so that, after giving effect to such deposit, the outstanding amount of the Obligations is not greater than the aggregate value of the Pledged Collateral (as determined in accordance with the Collateral Requirements).

 

(b) If at any time the undersigned has not satisfied the obligation under clause (a) to cause a reduction in the outstanding amount of the Obligations, deposit additional Pledged Collateral or change the composition of the Pledged Collateral
so as to increase the value of the Pledged Collateral, such occurrence shall be deemed an Event of Default under paragraph IX below, and BANA shall have the immediate right, without notice or other action (notwithstanding anything to the contrary in paragraph IX below), to exercise any or all of the remedies available to BANA under paragraph IX below.

 

IX. That in the event of the happening of any one or more of the following, any one of which shall constitute an event of default (an “Event of Default”): (a) the non-payment of (i) any of the fees
specified in the second paragraph of the Facility Agreement or any reimbursement obligation under Section 1 of the Agreement for Standby Letter of Credit delivered in connection with the Facility Letter, in each case on the date when such fees or reimbursement obligations are payable, and (ii) any of the other Obligations, within two business days after the date on which such other Obligations are payable, or, in the case of Obligations payable on demand, within one business day after payment is demanded;
(b) the failure of the undersigned to perform or observe (i) any of the undersigned’s obligations under paragraphs III(d), (e), (f) or (g), IV, V, VI, VII or VIII hereunder or (ii) any other obligations of the undersigned hereunder or under the Facility Agreement, the Letter of Credit Agreements, the Control Agreement (as defined in the Letter Agreement) other than provided in this paragraph IX or any instrument, agreement or other document delivered in connection herewith or therewith, and with respect
to clause (ii) only, such failure continues for ten days after the earlier of the date on which (A) the undersigned has knowledge of such failure and (B) BANA has given the undersigned written notice of such failure; (c) any representation or warranty made by the undersigned under or in connection herewith or any financial statement or certificate delivered in connection herewith shall have been incorrect in any material respect when made or deemed made; (d) the dissolution or termination of existence
of either Greenlight Entity; (e) the filing of a petition in bankruptcy by or against either Greenlight Entity (and which, in the case of any such proceeding filed against either Greenlight Entity, has not been dismissed within fifteen days after the filing thereof) or the commencement of any proceedings in bankruptcy, or under any Acts of Congress or foreign law relating to the relief of debtors, for the relief or readjustment of any indebtedness of either Greenlight Entity, either through the commencement of
liquidation, reorganization, composition, extension or otherwise, or the taking of any action by either Greenlight Entity authorizing any of the foregoing; (f) the making of an assignment for the benefit of creditors; (g) the appointment of a receiver, conservator, liquidator, or similar officer for, or for any property of, either Greenlight Entity; (h) the application by the Securities Investor Protection Corporation for a decree under the Securities Investor Protection Act that customers of either
Greenlight Entity are in need of protection thereunder; (i) any seizure, vesting or intervention by or under authority of a government, by which the management of either Greenlight Entity is displaced or its authority in the conduct of its business is materially curtailed; (j) the attachment of, restraint as to, or issuance of any order of a court or other legal process against any of the Pledged Collateral; (k) any one or more judgments or orders for the payment of money are rendered by a court or
other governmental authority against either or both Greenlight Entities in an aggregate amount in excess of $5,000,000 and such judgments or orders remain unpaid, unstayed on appeal, unbonded or undismissed for fifteen days; 

 

 

 

 

 

(l) either Greenlight Entity or any of its subsidiaries shall be in breach or default of its obligations under any one or more agreements involving an aggregate amount in excess of $5,000,000, if the effect of such breach or default is to cause the obligations thereunder to become due or redeemed or to permit the holder or holders of such obligations to declare such obligations due
or require such obligations to be redeemed prior to their stated maturity; (m) there shall occur a material adverse change since the date of this agreement in the condition (financial or otherwise), operations, business or properties of either Greenlight Entity; (n) at any time either (i) the board of directors of the undersigned shall cease to consist of a majority of the Continuing Directors (for purposes hereof, “Continuing Directors" means directors of the undersigned who are in office on the date hereof
and each other director whose nomination for election to the board of directors of the undersigned is recommended by a majority of the then Continuing Directors) or (ii) any person or group (within the meaning of Sections 13(d) and 14(d) of the Securities and Exchange Act of 1934, as amended) other than Greenlight Capital or any affiliate of Greenlight Capital shall acquire a majority of the voting power represented by the undersigned’s outstanding capital stock entitled to vote in the election of directors
of the undersigned; (o) an Event of Default has occurred and is continuing under the Prime Broker Account Agreement; (p) any covenant, agreement or obligation of either Greenlight Entity contained in or evidenced by this agreement, the Facility Agreement, any of the Letter of Credit Agreements, the Control Agreement or any instrument, agreement or other document delivered in connection herewith or therewith ceases to be, or shall be determined not to be, enforceable or in full force and effect or either Greenlight
Entity shall deny or disaffirm in writing any such covenant, agreement or obligation; (q) the Prime Broker Account Agreement shall terminate for any reason or expire according to its terms; or (r) either Greenlight Entity or any of its subsidiaries shall be in breach or default of its obligations (after giving effect to any applicable grace period) under any agreement with BANA or MLPRO or any of their respective affiliates relating to payment obligations of any such Greenlight Entity in an aggregate amount in
excess of $1,000,000, if the effect of such breach or default is to permit BANA, MLPRO or any such affiliate to terminate such agreement or to cause the obligations of such Greenlight Entity thereunder relating to payment obligations of such Greenlight Entity in an aggregate amount in excess of $1,000,000 (such obligations being referred to as “Defaulted Liabilities”) to become due or redeemed or to permit BANA, MLPRO or any such affiliate to declare such Defaulted Liabilities to be due or require
such Defaulted Liabilities to be redeemed prior to their stated maturity — then, or at any time after the happening of any such Event of Default, (x) any or all of the Obligations then existing, although otherwise unmatured or contingent, shall at the option of BANA, without demand upon or notice to the undersigned, become due and payable forthwith, except that contingent reimbursement obligations payable on account of undrawn Letters of Credit shall be required to be secured by cash collateral in
an amount equal to 100% of the amount of such contingent obligations, which cash collateral shall be maintained on deposit in the Pledged Account and applied as and to the extent such contingent obligations become liquidated and (y) any obligation of BANA to issue Letters of Credit under the Facility Agreement shall, at the option of BANA, be terminated; provided, however, that
in the event of any actual or deemed entry of an order for relief with respect to either Greenlight Entity under the Federal Bankruptcy Code or of any resolution passed or order made for the winding up of either Greenlight Entity, any or all of the Obligations then existing, although otherwise unmatured or contingent, shall automatically become and be due and payable (or subject to be cash collateralized, as provided above) and any such obligation to issue Letters of Credit shall automatically be terminated.  Furthermore,
upon the occurrence of any Event of Default, BANA shall have all of the rights and remedies provided to a secured party by the Uniform Commercial Code in effect in New York State at that time, including, without limitation, the right to sell or otherwise dispose of any or all of the Pledged Collateral as BANA shall select in its sole and absolute discretion, and the undersigned further agrees that (1) in the event that notice is necessary (e.g.,
because the property to be sold in connection therewith does not consist of property of a type customarily sold on a recognized market), written notice mailed to the undersigned at the address given below at least ten business days prior to the date of public sale of property subject to the security interest of BANA or prior to the date after which private sale or any other disposition of said property will be made shall constitute reasonable notice, but notice given in any other reasonable manner or at any other
reasonable time shall be sufficient; (2) without precluding any other methods of sale, the sale of property shall have been made in a commercially reasonable manner if conducted in conformity with reasonable commercial practices of banks disposing of similar property, but in any event, BANA may sell at its option on such terms as it may choose without assuming any credit risk and without obligation to advertise; (3) BANA may apply the proceeds of the Pledged Collateral to such of the Obligations and in such order
as it may elect in its sole discretion; (4) after the satisfaction in full of the Obligations, any excess proceeds received by BANA resulting from the sale or other disposition of the Pledged Collateral shall be applied by MLPRO in accordance with the terms of the Prime Broker Account Agreement and applicable law; and (5) the undersigned or any of its affiliates may participate in any such sale of property and be a purchaser thereof.  Furthermore, if the Prime Broker Account Agreement is terminated
for any reason or expires according to its terms, the undersigned shall immediately provide cash to the Pledged Account in an amount not less than 100% of the then outstanding Obligations.

 

X. That the undersigned will pay to BANA, as soon as incurred, all reasonable costs and out-of-pocket expenses, including attorneys' fees, related or incidental to the care, holding, retaking, preparing for sale, selling
or collection of or realization upon any of the property or relating or inciden­tal to the establishment or preserving or enforcement of the rights of BANA hereunder or in respect of any of the property, and obtaining legal advice as to any of the foregoing. Furthermore that the net proceeds of the property, resulting from sale, collection or otherwise, and other available moneys coming into the hands of BANA may be applied by it, at any time that an Event of Default has occurred and is continuing, to the
satisfaction or reduction of such of the Obligations or costs and expenses as it may see fit, whether or not matured.

 

 

 

 

 

XI. That all rights of BANA and liens of BANA shall continue unimpaired, and that the undersigned shall be and remain bound by the Obligations in accordance with the terms thereof, notwithstanding the release of any
of the aforementioned property, or of any rights or interests therein, or any delay, extension of time, renewal, compromise or other indulgence granted by BANA in reference to any of the Obligations or any promissory note, draft, bill of exchange or other instrument or other obligations given in connection therewith or constituting a part of the said property, the undersigned hereby waiving all notice of any such delay, extension, release, substitution, renewal, compromise or other indulgence, and hereby consenting
to be bound thereby as fully and effectually as if the undersigned had expressly agreed thereto in advance.

 

XII. That BANA may, at its option and without obligation to do so, at any time that an Event of Default has occurred and is continuing, transfer to or register in the name of its nominee(s), including any "clearing
corporation" or "custodian bank" as defined in the Uniform Commercial Code in effect in New York State and any nominee(s) thereof, all or any part of the aforementioned property and it may do so before or after the maturity of any of the Obligations and with or without notice to the undersigned.

 

XIII. That BANA may, with the consent of the undersigned, which shall not be unreasonably withheld or delayed, assign or otherwise transfer all or any of its rights under this agreement (it being understood that BANA
may not, without the undersigned’s prior written consent, assign any of its obligations under this agreement), and deliver all or any of the property to the transferee(s), who shall thereupon become vested with all the rights in respect thereof given to BANA herein or otherwise, all without prejudice to the retention by BANA of all rights not so transferred, except that the consent of the undersigned shall not be required hereunder in the case of an assignment, (i) at any time that an Event of Default
has occurred and is continuing, (ii) to an affiliate of BANA, or (iii) which constitutes a pledge to a Federal Reserve Bank in accordance with applicable law.  Furthermore that BANA may, in connection with any such assignment, transfer or delivery, disclose to the assignee or transferee or proposed assignee or proposed transferee any information relating to the undersigned furnished to BANA by or on behalf of the undersigned, provided that, prior to any such disclosure, the assignee or transferee
or proposed assignee or proposed transferee shall agree to be subject to the same confidentiality obligations applicable to BANA with respect to any confidential information related to the undersigned and shall enter into a confidentiality agreement to such effect with BANA under which the undersigned is designated a third party beneficiary with the right to enforce the terms of such confidentiality agreement.

 

XIV. That the word "property" as used herein includes goods and merchandise, funds, cash balances, securities (including certificated, uncertificated and book-entry securities), investment property, financial assets,
accounts receivable, choses in action and any and all other forms of property whether real, personal or mixed, together with the proceeds thereof, any right, title or interest therein or thereto, and any documents relative thereto.

 

XV. That the term “business day” as used herein means a day of the year on which banks in New York, New York or Scranton, Pennsylvania are not required or permitted to close.

 

XVI. That BANA is authorized, at its option, to file Financing Statement(s), Amendments and Continuation Statement(s) with­out the signature of the undersigned with respect to any of the aforementioned property;
the undersigned agrees to pay the reasonable cost of any such filing, and to sign upon request any instruments, documents or other papers which BANA may reasonably require to perfect its security interest therein.

 

XVII. That, BANA is irrevocably appointed the attorney-in-fact of the undersigned with full authority in the place and stead of the undersigned and in the name of the undersigned, in BANA's name or otherwise, from time
to time in BANA's discretion, to take any action and to execute any instrument, document or agreement (including, without limitation, financing statements, amendments thereto and continuation statements) which BANA may reasonably deem necessary or advisable to accomplish the purposes of this agreement including, without limitation, to perfect, and, upon the occurrence and during the continuance of an Event of Default, to preserve, and protect the security interest granted or purported to be granted hereunder,
and the undersigned agrees to pay BANA on demand any expenses with respect thereto.

 

 

 

 

 

XVIII. That, to induce BANA to make any advance or extend any credit secured hereby, the undersigned represents and warrants as follows (which representations and warranties shall be deemed to be repeated on the date
of each such advance or extension of credit after the date hereof):  (a) It is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization; (b) the execution, delivery and performance of this agreement are within the capacity and powers of the undersigned, have been duly authorized by all necessary action, and do not contravene (i) the charter and other organizational documents of the undersigned, or (ii) any law, regulation or contractual
restriction binding on or affecting the undersigned; (c) no authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the due execution, delivery and performance of this agreement by the undersigned; (d) this agreement is the legal, valid and binding obligation of the undersigned, enforceable against the undersigned in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium and similar
laws relating to or affecting creditors’ rights and general principles of equity; (e) the consolidated and consolidating financial statements of the Greenlight Entities most recently received by BANA fairly present the financial condition of the Greenlight Entities in all material respects as of the date thereof or for the period ended on such date, in accordance with GAAP, and there has been no material adverse change in the business, condition (financial or otherwise), or results of operation of
the undersigned or in the ability of the undersigned to perform its obligations hereunder since the date of such financial statements; (f) all tax returns with respect to the undersigned and the undersigned's property which are required to be filed have been duly filed, all taxes and assessments shown thereon to be due and payable by the undersigned have been paid, and no taxing authority has asserted in writing any claim for unpaid taxes or assessments against the undersigned; (g) except for claims
or actions that relate to reinsurance or insurance obligations issued by the undersigned which involve potential liabilities that do not exceed 15% of the undersigned’s net worth, as determined in accordance with GAAP, there is no pending claim or action or, to the undersigned’s knowledge, claim or action threatened against the undersigned, which, if adversely determined, could reasonably be expected to affect materially and adversely the financial condition or operations of the undersigned, or the
legality, validity or enforceability of this agreement or any document executed or delivered in connection herewith by the undersigned; (h) no Event of Default has occurred and is continuing nor has any event occurred which, with the giving of notice or the passage of time, or both, would constitute an event of default; and (i) the undersigned is not an "investment company" or a company "controlled" by an "investment company," within the meaning of the Investment Company Act of 1940, as amended.

 

XIX. That all notices and other communications hereunder shall be in writing and sent by certified or registered mail, return receipt requested, by overnight delivery service, by telecopier, or hand-delivery to the
address of BANA, at Bank of America, N.A., One Fleet Way, PA6-580-02-30, Scranton, Pennsylvania 18507-1999, telecopier no. (800) 755-8743, Attention: Manager, Standby Letters of Credit with a copy to Bank of America Merrill Lynch, One Bryant Park, 6th Floor, New York, New York 10110, telecopier no. (212) 738-1329, Attention: Ms. Mary Foreman, and, if to the undersigned, to the address or telephone or telecopier number specified for it below.  All such notices shall be deemed given (i) if sent by
overnight courier, mail or hand-delivery, when received at such address or when delivery is refused or (ii) if sent by telecopier or other electronic transmission, when transmission is confirmed.  Each of BANA and the undersigned may change its address or telephone or telecopier number for notices and other communications hereunder by notice to the other party hereto in the manner required hereunder.

 

XX. That nothing contained herein shall limit or otherwise affect in any way the right of BANA to demand, at any time, payment of any obligations secured hereby that are payable on demand.

 

XXI. That, in case any provision in or obligation under this agreement or any other document related to this agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability
of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

 

XXII. That this agreement and the other documents related to this agreement constitute the entire understanding between the parties hereto with respect to the subject matter hereof and supersede any prior or contemporaneous
agreements, written or oral, with respect thereto.

 

XXIII. That this agreement shall be deemed to have been made under, and shall be governed by, the laws of the State of New York in all respects, including matters of construction, validity and performance, and that
none of its terms or provisions may be waived, altered, modified or amended except as BANA may consent thereto in writing.

 

XXIV. That, without limiting the right of BANA to bring any action or proceeding against the undersigned or against property of the undersigned including, without limitation, property pledged to BANA under this agreement
(an “Action”) in the courts of other jurisdictions, the undersigned hereby irrevocably submits to the jurisdiction of any New York State or Federal court sitting in New York City, and the undersigned hereby irrevocably agrees that any Action may be heard and determined in such New York State court or in such Federal court. The undersigned hereby irrevocably waives, to the fullest extent it may effectively do so, the defense of an inconvenient forum to the maintenance of any Action in any jurisdiction.
The undersigned hereby irrevocably agrees that the summons and complaint or any other process in any Action in any jurisdiction may be served by mail or by hand delivery sent to it at:

 

 

 

Corporation Services Company

1133 Avenue of the Americas

New York, New York 10036

 

XXV. THAT BOTH THE UNDERSIGNED AND BANA HEREBY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING UNDER OR RELATING TO ANY OBLIGATION OR THIS AGREEMENT.

 

Dated, this 21st day of July, 2009

 

	  	
GREENLIGHT REINSURANCE, LTD.

 

	 	 	 By: 	/s/ Tim Courtis 	 
	 	        	 	Tim Courtis
	 	        	 	
Chief Financial Officer

 

 

	 	 	 By:	/s/ Barton Hedges	  
	 	 	Barton Hedges
	 	 	Chief Underwriting Officer
	  	
         

	  	Address: 	
P.O. Box 31110

802 West Bay Road

George Town, Grand Cayman

KY1-1205 Cayman Islands

Attn.: Tim Courtis

Telephone: 345-943-4573

Telecopier:  345-745-4576

 

	
ACKNOWLEDGED AND AGREED AS OF

JULY 21, 2009:

 

BANK OF AMERICA, N.A.

 
	  
	 	 	 By: 	/s/ Eugene Rabinovich 	 	 
	 	 	Eugene Rabinovich	 	 
	 	 	Principal	 	 
	 	 
	
MERRILL LYNCH PROFESSIONAL CLEARING CORP.                                                

 

 
	  
	 	By: 	/s/ Mary Foreman 	 	 
	 	 	Mary Foreman	 	 
	 	 	Managing Director	 	 

 

 

 

 

 

 

BANK OF AMERICA, N.A.

SCRANTON, PA

AGREEMENT FOR STANDBY LETTER OF CREDIT

In consideration of your issuance of an irrevocable letter of credit (the "Credit") substantially in accordance with the terms and conditions provided by the undersigned (the "Applicant") on the Application attached hereto or as otherwise requested by Applicant in writing, Applicant unconditionally agrees with you ("BANA") as follows:

1.       Reimbursement.  Applicant will pay BANA the amount of each draft or other request for payment (each, a "Draft") drawn under the Credit, whether drawn before, on or, if in accordance with applicable law, after the expiry date stated in the Credit.  Each such payment shall
be made within one Business Day (or two Business Days, if notice from BANA to Applicant of payment hereunder is given after 2:00 p.m. New York time) after the date on which BANA notifies Applicant of payment by BANA of a Draft, together with interest accrued on such amount at a daily fluctuating interest rate per annum equal to the Prime Rate of interest that appears in the “Money Rates” section of the Wall Street Journal (the “Prime Rate”).  The Credit shall be denominated in
U.S. Dollars.  For purposes hereof, “Business Day” means a day of the year on which banks in New York, New York or Salt Lake City, Utah are not required or permitted to close.

2.       Commissions, Fees, Charges and Expenses; Conditions Precedent to Issuance of Credit.  Applicant will pay BANA (a) commissions, fees and other charges on the Credit (for so long as BANA shall be obligated under the Credit in accordance with applicable law) at such rates and times as
specified in the letter agreement dated July 21, 2009 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Facility Agreement”) between Applicant and BANA and (b) on demand, and without limitation of paragraph 6 hereof, all expenses which BANA may reasonably pay or incur in connection with the Credit.

3.       Payments; Interest on Past Due Amounts; Computations.  All amounts due from Applicant shall be paid to BANA at Bank of America, N.A., One Fleet Way, PA6-580-02-30 (or such other address notified to Applicant in writing), without defense, set-off, cross-claim, or counterclaim of any
kind, in United States Dollars and in same day funds.  Any amount not paid when due shall bear interest until paid in full at a daily fluctuating interest rate per annum equal to two percent per annum above the Prime Rate, but in no event in excess of the maximum rate permitted by applicable law.  Applicant authorizes BANA to charge any account of Applicant maintained with BANA in connection with this Agreement, the Facility Agreement, the Hypothecation Agreement or any other agreement entered
into in connection with the extension of any Credit for any amount not paid when due.  Unless otherwise agreed in writing as to the Credit, all computations of commissions, fees and interest shall be based on a 360-day year and actual days elapsed; provided, however, that if such computation shall cause the amount of interest payable hereunder to exceed the maximum rate of interest permitted by applicable law, all computations of interest shall be made upon the basis of a year of 365 or 366 days.

4.       Additional Costs.  If BANA determines that the introduction or effectiveness of, or any change in, any law or regulation or compliance with any guideline or request from any central bank or other governmental or quasi-governmental authority (whether or not having the force of law)
after the date hereof affects or would affect the amount of capital or reserves required or expected to be maintained by BANA or any corporation controlling BANA and BANA determines that the amount of such capital or reserve is increased by or based upon the existence of the Credit, then Applicant shall pay BANA on demand from time to time additional amounts sufficient in BANA's reasonable, Good Faith (as defined below) judgment to compensate for the increase.  BANA's certificate as to amounts due shall
be conclusive, in the absence of manifest error.

5.       Taxes.  All payments made to BANA shall be made free and clear of and without deduction for any present or future taxes, levies, imposts, deductions, charges, or withholdings, and all related liabilities, excluding income and franchise taxes imposed by the jurisdiction of BANA's head
office issuing the Credit or any of its political subdivisions (all non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities are called "Taxes").  If any Taxes shall be required by law to be deducted from or in respect of any sum payable under this Agreement, (a) the sum payable under this Agreement shall be increased as may be necessary so that after making all required deductions BANA receives an amount equal to the sum BANA would have received had no such deductions
been required, (b) Applicant shall be responsible for payment of the amount to the relevant taxing authority, (c) Applicant shall indemnify BANA on demand for any Taxes paid by BANA and any liability (including penalties, interest and expenses) arising from its payment or in respect of such Taxes, whether or not such Taxes were correctly or legally asserted, and (d) Applicant shall provide BANA with the original or a certified copy of the receipt evidencing each payment of Taxes within 30 days of the
tax payment date.

6.       Indemnification.  Applicant will indemnify and hold BANA and its officers, directors, affiliates, employees, attorneys and agents (each, an “Indemnified Party") harmless from and against any and all claims, liabilities, losses, damages, costs and expenses including without limitation,
reasonable attorneys' fees and disbursements, other dispute resolution expenses (including fees and expenses in preparation for a defense of any investigation, litigation or proceeding) and costs of collection that arise out of or in connection with or by reason of:  (a) the issuance of the Credit, (b) any payment or action taken or omitted to be taken (including, without limitation, any failure to make payment on the Credit) in connection with the Credit including any action or proceeding seeking (i)
to restrain any drawing under the Credit, (ii) to compel or restrain the payment of any amount or the taking of any other action under the Credit, (iii) to compel or restrain the taking of any action under this Agreement, or (iv) to obtain similar relief (including by way of interpleader, declaratory judgment, attachment, or otherwise, regardless of who the prevailing party is in any such action or proceeding), (c) the enforcement of this Agreement or (d) any act or omission, whether rightful or wrongful,
of any present or future de jure or de facto government or governmental authority relating to the Credit, except, in each case, to the extent such claim, liability, loss, damage, cost or expense is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party's gross negligence or willful misconduct.  Applicant will pay on demand from time to time all amounts owing under this section.

 

 

 

7.       Obligations Absolute:  Limitations of Liability.  (a) Applicant's obligations under this Agreement (the "Obligations") shall be unqualified, irrevocable and payable in the manner and method provided for under this Agreement irrespective of any one or more of the following
circumstances:  (i) any lack of validity or enforceability of this Agreement, the Credit, or any other agreement, application, amendment, guaranty, document, or instrument relating thereto, (ii) any change in the time, manner or place of payment of or in any other term of all or any of the Obligations of Applicant or the obligations of any person or entity that guarantees the Obligations, (iii) the existence of any claim, set-off, defense or other right that Applicant or BANA may have at any time against
any beneficiary or any transferee of the Credit (or any person or entity for whom any such beneficiary or transferee may be acting), BANA or any other person or entity, whether in connection with any transaction contemplated by this Agreement or any unrelated transaction, (iv) any exchange, release or non-perfection of any security interest in any Property (as hereafter defined) or other collateral, or release or amendment or waiver of or consent to departure from the terms of any guaranty or security agreement
including, without limitation, the Hypothecation Agreement dated July 21, 2009 by Applicant in favor of BANA (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Hypothecation Agreement”), for all or any of the Obligations, (v) any Draft, or other document presented under the Credit being forged, fraudulent, invalid, or insufficient or any statement therein being untrue or inaccurate, (vi) any failure by BANA to issue the Credit (or any amendment thereof) in
the specific form requested by Applicant, unless BANA receives written notice from Applicant of such failure within five Business Days after Applicant shall have received a copy of the Credit (or such amendment) as actually issued by BANA and such failure is material and consequential, it being understood that BANA shall have no obligation to issue any Credit in violation of any applicable law or regulation or in violation of this Agreement, the Facility Agreement or the Hypothecation Agreement, (vii) any
previous Obligation, whether or not paid, arising from BANA's payment against any Draft, certificate or other document which appeared on its face to be signed or presented by the proper party but was in fact signed or presented by a party posing as the proper party, (viii) payment by BANA under the Credit against presentation of a Draft or other document that in BANA’s Good Faith judgment appeared to comply with the terms and conditions of the Credit but in fact did not comply with the terms and conditions
of the Credit, and (ix) any action or inaction taken or suffered by BANA or any of its correspondents in connection with the Credit or any relevant Draft, certificate, other document or Property, if taken in good faith (i.e. honesty in fact in the conduct or transaction concerned, "Good Faith") and in conformity with applicable U.S. or foreign law or letter of credit practices and all of the documents covering the Credit.  (b)  Without limiting any other provision of this Agreement, BANA and
any of its correspondents:  (i) may rely upon any telephonic, telegraphic, facsimile, electronic, written or other communication believed in Good Faith to have been authorized by Applicant, whether or not given or signed by an authorized person, (ii) shall not be responsible for errors, omissions, interruptions or delays in transmission or delivery of any message, advice or document in connection with the Credit, whether transmitted by courier, mail, telex, any other telecommunication, or otherwise
(whether or not they be in cipher), or for errors in interpretation of technical terms or in translation (and BANA and its correspondents may transmit Credit terms without translating them), (iii) shall not be responsible for the identity or authority of any signer or the form, accuracy, genuineness, falsification or legal effect of any Draft, certificate or other document presented under the Credit if such Draft, certificate or other document on its face appears to be in accordance with the terms and conditions
of the Credit, (iv) shall not be responsible for any acts or omissions by or the solvency of the beneficiary of the Credit or any other person or entity having any role in any transaction underlying the Credit, (v) may accept or pay as complying with the terms and conditions of the Credit any Draft, certificate or other document appearing on its face as determined by BANA in Good Faith (A) substantially to comply with the terms and conditions of the Credit, (B) to be signed or presented by or issued to any
successor of the beneficiary or any other person in whose name the Credit requires or authorizes that any Draft, certificate or other document be signed, presented or issued, including any administrator, executor, personal representative, trustee in bankruptcy, debtor in possession, liquidator, receiver, or successor by merger or consolidation, or any other person or entity purporting to act as the representative of or in place of any of the foregoing, or (C) to have been signed, presented or issued after a change
of name of the beneficiary, (vi) may disregard (A) any requirement stated in the Credit that any Draft, certificate or other document be presented to it at a particular hour or place and (B) any discrepancies that do not reduce the value of the beneficiary's performance to Applicant in any transaction underlying the Credit, (vii) may accept as a Draft any written or electronic demand or other request for payment under the Credit, even if such demand or other request is not in the form of a negotiable draft, (viii)
shall not be responsible for the effectiveness or suitability of the Credit for Applicant's purpose, or be regarded as the drafter of the Credit regardless of any assistance that BANA may, in its discretion, provide to Applicant in preparing the text of the Credit or amendments thereto, (ix) shall not be liable to Applicant for any consequential or special damages, or for any damages resulting from any change in the value of any foreign currency, services or goods or other property covered by the Credit, (x)
may assert or waive application of UCP (as defined below) Articles 17 (force majeure) and 45 (hours of presentation) and all other UCP articles primarily benefiting bank issuers, (xi) may honor a previously dishonored presentation under the Credit, whether pursuant to court order, to settle or compromise any claim that it wrongfully dishonored, or otherwise, and shall be entitled to reimbursement to the same extent as if it had initially honored plus reimbursement of any interest paid by it, (xii) may honor,
upon receipt, any drawing that is payable upon presentation of a statement advising negotiation or payment (even if such statement indicates that a Draft, certificate or other document is being separately delivered) and shall not be liable for any failure of any Draft, certificate or document to arrive or to conform in any way with the Draft, certificate or other document referred to in the statement or any underlying contract, and (xiii) may pay any paying or negotiating bank (designated or permitted by the
terms of the Credit) claiming that it rightfully honored under the laws or practices of the place where it is located.  None of the circumstances described in this section shall place BANA or any of its correspondents under any resulting liability to Applicant.

8.       Independence.  Applicant acknowledges that the rights and obligations of BANA under the Credit are independent of the existence, performance or nonperformance of any contract or arrangement underlying the Credit, including contracts or arrangements between BANA and Applicant and between
Applicant and the beneficiary of the Credit.  BANA shall have no duty to notify Applicant of its receipt of a Draft, certificate or other document presented under the Credit or of its decision to honor the Credit.  BANA may, without incurring any liability to Applicant or impairing its entitlement to reimbursement under this Agreement, honor the Credit despite notice from Applicant of, and without any duty to inquire into, any defense to payment or any adverse claims or other rights against
the beneficiary of the Credit or any other person.  BANA shall have no duty to request or require the presentation of any document, including any default certificate, not required to be presented under the terms and conditions of the Credit.  BANA shall have no duty to seek any waiver of discrepancies from Applicant, nor any duty to grant any waiver of discrepancies which Applicant approves or requests.  Each Credit may be extended at any time before the Facility Termination Date
(as defined in the Facility Agreement) in accordance with the terms and conditions of the Facility Agreement.

 

 

 

9.       Non-Documentary Conditions.  BANA is authorized (but shall not be required) to disregard any non-documentary conditions stated in the Credit.

10.       Transfers.  If, at Applicant's request, the Credit is issued in transferable form, BANA shall have no duty to determine the proper identity of anyone appearing in any transfer request, Draft, or other document as transferee, nor shall BANA be responsible for the validity or correctness
of any transfer.

11.       Extensions and Modifications of the Credit.  This Agreement shall be binding upon Applicant with respect to any extension or modification of the Credit made at Applicant's written request or with Applicant's written consent.  Applicant's Obligations shall not be reduced
or impaired in any way by any agreement by BANA and the beneficiary of the Credit extending BANA's time to honor or to give notice of discrepancies and any such agreement shall be binding upon Applicant.

12.       Additional Bond.  If at any time Applicant shall seek to restrain or preclude payment of or drawing under the Credit or any court shall extend the term of the Credit or take any other action which has a similar effect, then, in each case, Applicant shall provide BANA with a bond or
other collateral of a type and value, not exceeding the outstanding amount of the Credit, satisfactory to BANA as security for the Obligations.

13.       Set-off.  If any Event of Default (as defined in the Hypothecation Agreement) shall occur and be continuing, BANA may set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held, and other indebtedness at any time owing, by BANA
or Merrill Lynch Professional Clearing Corp. (“MLPRO”) to or for the credit or the account of Applicant ("Deposits") against any and all of the Obligations, irrespective of whether or not BANA shall have made any demand under this Agreement and although such Deposits or Obligations may be unmatured or contingent.  BANA's rights under this section are in addition to other rights and remedies (including other rights of set-off) that BANA may have under this Agreement, the Hypothecation Agreement
or applicable law.

14.       Waiver of Immunity.  Applicant acknowledges that this Agreement is, and the Credit will be, entered into for commercial purposes and, to the extent that Applicant now or later acquires any immunity from jurisdiction of any court or from any legal process with respect to itself or
its property, Applicant now irrevocably waives its immunity with respect to the Obligations.

15.       Notices; Interpretation; Severability.  Notices and other communications hereunder shall be in writing and sent by overnight courier mail, by telecopier, or by hand-delivery to the address of BANA, at Bank of America, N.A., One Fleet Way, PA6-580-02-30, Scranton, Pennsylvania 18507-1999,
telecopier no. (800) 755-8743, Attention: Manager, Standby Letters of Credit, with a copy to Bank of America Merrill Lynch, One Bryant Park, 6th Floor, New York, New York 10110, telecopier no. (212) 738-1329, Attention: Ms. Mary Foreman, and, if to Applicant, to the address specified for it below.  All such notices shall be deemed given (i) if sent by overnight courier mail or by hand-delivery, when received at such address or when delivery is refused or (ii) if sent by telecopied transmission, when
transmission is confirmed.  Each of Applicant and BANA may change its address or telecopier number for notices and other communications hereunder by notice to the other party hereto in the manner required hereunder.  Headings are included only for convenience are not interpretative.  The term "including" means "including without limitation."  If any provision of this Agreement is held illegal or unenforceable, the validity of the remaining provisions shall not be affected.

16.       Successors and Assigns.  This Agreement shall be binding upon Applicant and its successors and permitted assigns, and shall inure to the benefit of and be enforceable by BANA, its successors and permitted assigns.  Applicant shall not voluntarily transfer or otherwise assign
any of its obligations under this Agreement.  BANA may, with the consent of Applicant, which shall not be unreasonably withheld or delayed, assign or otherwise transfer all or any of its rights under this Agreement (it being understood that BANA may not, without Applicant’s prior written consent, assign any of its obligations (including, without limitation, its obligation to issue the Credit) under this Agreement, all without prejudice to the retention by BANA of all rights not so transferred,
except that the consent of Applicant shall not be required hereunder in the case of an assignment, (i) at any time that an Event of Default has occurred and is continuing, (ii) to an affiliate of BANA, or (iii) which constitutes a pledge to a Federal Reserve Bank in accordance with applicable law.  BANA may, in connection with any such assignment, transfer or delivery, disclose to the assignee or transferee or proposed assignee or proposed transferee any information relating to Applicant furnished to
BANA by or on behalf of Applicant, provided that, prior to any such disclosure, the assignee or transferee or proposed assignee or proposed transferee shall agree to be subject to the confidentiality obligations applicable to BANA under paragraph 24 hereof with respect to any confidential information related to Applicant and shall enter into a confidentiality agreement to such effect with BANA under which Applicant is designated a third party beneficiary with the right to enforce the terms of such confidentiality
agreement.  BANA shall be forever relieved from any liability with respect to the portion of BANA's rights transferred or assigned in accordance herewith.  This Agreement shall not be construed to confer any right or benefit upon any person or entity other than Applicant and BANA and their respective successors and permitted assigns.

17.       Modification; No Waiver.  None of the terms of this Agreement may be waived or amended except in a writing signed by the party against whose interest the term is waived or amended.  Forbearance, failure or delay by BANA in the exercise of a remedy shall not constitute a
waiver, nor shall any exercise or partial exercise of any remedy preclude any further exercise of that or any other remedy.  Any waiver or consent by BANA shall be effective only in the specific instance and for the specific purpose for which it is given and shall not be deemed, regardless of frequency given, to be a further or continuing waiver or consent.

18.       Multiple Role Disclosure.  BANA and its affiliates offer a wide range of financial services, including back-office letter of credit processing services on behalf of financial institutions and letter of credit beneficiaries.  Our services are provided internationally to a
wide range of customers, some of whom may be Applicant's counter-parties or competitors.  Applicant acknowledges and accepts that BANA and its affiliates may perform more than one role in relation to a particular Credit.

19.       Other Agreements; Remedies Cumulative; Delivery by Facsimile.  This Agreement, the Facility Agreement, the Hypothecation Agreement and any control agreement relating thereto with MLPRO or any other third party securities intermediary constitute the entire agreement among the parties
concerning BANA's issuance of a letter or letters of credit for Applicant's account and supersede all prior simultaneous agreements, written or oral.  All rights and remedies of BANA under this Agreement and other documents delivered in connection with this Agreement are cumulative and in addition to any other right or remedy under this Agreement, the Credit or applicable law.  Delivery of a signed signature page to this Agreement by facsimile transmission shall be effective as, and shall
constitute physical delivery of, a signed original counterpart of this Agreement.

 

 

 

20.       Termination; Surviving Provisions.  This Agreement shall be terminated only upon the extinguishment of BANA’s liability under the Credit and payment in full to BANA of all Obligations hereunder.  Indemnity, tax, immunity, and jurisdiction provisions shall survive termination
of this Agreement.  If the Credit is issued in favor of any bank or other financial or commercial entity in support of an undertaking issued by such bank or entity on behalf of Applicant or BANA, Applicant shall remain liable under this Agreement (even after expiry of the Credit) for amounts paid and expenses incurred by BANA with respect to the Credit or the undertaking until BANA is released by such other bank or entity.

21.       Governing Law; Governing Guidelines.  (a) This Agreement and the rights and obligations of Applicant and BANA hereunder shall be governed by and subject to the laws of the State of New York and applicable U.S. Federal laws.  (b) Applicant agrees that BANA may issue
any Credit subject to the Uniform Customs and Practice for Documentary Credits, 1993 Revision, International Chamber of Commerce Publication No. 600 (the "UCP") or the International Standby Practices, International Chamber of Commerce No. 590 (the "ISP") or, at BANA's option, such later revision thereof in effect at the time of issuance of the Credit.  The UCP or the ISP, as applicable, shall serve, in the absence of proof to the contrary, as evidence of general banking usage with respect
to the subject matter thereof.  (c) Applicant agrees that (i) each Credit shall be interpreted in accordance with the laws of the State of New York and (ii) for matters not addressed by the UCP or the ISP, each Credit shall be subject to and governed by the laws of the State of New York and applicable U.S. Federal laws.  If, at Applicant's request, a Credit expressly chooses a state or country law other than New York, U.S.A., or is silent with respect to UCP, ISP or governing
law, BANA shall not be liable for any payment, cost, expense or loss resulting from any action or inaction taken by BANA if such action or inaction is justified under UCP, ISP, New York law or the law governing the Credit.

22.       Jurisdiction; Service of Process.  Applicant now irrevocably submits to the non-exclusive jurisdiction of any state or federal court sitting in New York, New York, for itself, and in respect of any of its property and, if a law other than New York, U.S.A. has been chosen to govern
the Credit, Applicant also now irrevocably submits to the non-exclusive jurisdiction of any state or federal court sitting in such jurisdiction.  Applicant agrees not to bring any action or proceeding against BANA in any jurisdiction not described in the immediately preceding sentence.  Applicant irrevocably waives any objection to venue or any claim of inconvenience.  Applicant agrees that any service of process or other notice of legal process may be served upon it by mail or hand
delivery if sent to it at:

Corporation Services Company

1133 Avenue of the Americas

New York, New York 10036

which Applicant now designates its authorized agent for the service of process in the courts in the State of New York.  (If no authorized agent is designated in the space provided above, Applicant agrees that process shall be deemed served if sent to its address given for notices under this Agreement.)  Applicant agrees
that nothing in this Agreement shall affect BANA's right to serve process in any other manner permitted by law or to commence legal proceedings or otherwise proceed against Applicant in any other jurisdiction.  Applicant agrees that final judgment against it in any action or proceeding shall be enforceable in any other jurisdiction within or outside the United States of America by suit on the judgment, a certified copy of which shall be conclusive evidence of the judgment.

23.       JURY TRIAL WAIVER.  APPLICANT AND BANA (BY ITS RECEIPT HEREOF) EACH IRREVOCABLY WAIVES ITS RIGHT TO A JURY TRIAL OF ANY CLAIM, COUNTERCLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE CREDIT OR ANY DEALINGS WITH ONE ANOTHER RELATING TO THE SUBJECT  MATTER
OF THIS AGREEMENT.

24.  Confidentiality.  BANA agrees to take and to cause its affiliates to take normal and reasonable precautions and exercise due care to maintain the confidentiality of all information provided by Applicant or any of its affiliates under this Agreement or any other agreement or document relating to the Credit that
is designated in writing to be confidential (“Information”), and neither it nor any of its affiliates shall use any Information other than in connection with or in enforcement of this Agreement and the other agreements and documents relating to the Credit, except to the extent Information (a) was or becomes generally available to the public other than as a result of disclosure by BANA or its affiliates, or (b) was or becomes available on a non-confidential basis from a source other than Applicant
or its affiliates, provided that such source is not bound by a confidentiality agreement with Applicant known to BANA; provided, however, that BANA may disclose Information (i) at the request or pursuant to any requirement of any governmental authority to which BANA is subject, in each case upon prior notice to Applicant unless prohibited by law or the rules governing the process requiring such disclosure; (ii) pursuant to subpoena or other court process, upon prior notice to Applicant unless prohibited by law
or the rules governing the process requiring such disclosure; (iii) when required to do so in accordance with the provisions of any applicable requirement of law, upon prior notice to Applicant unless prohibited by law or the rules governing the process requiring such disclosure; (iv) to the extent reasonably required in connection with the exercise of any remedy hereunder or under any other agreement or document relating to the Credit; and (v) to BANA’s independent auditors and other professional
advisors who agree or are directed to maintain the confidentiality of the Information.

  

  

  

 

Very truly yours,

GREENLIGHT REINSURANCE, LTD.

 

 

 

	 By:	/s/ Tim Courtis 	 
	 	 	 
	 	 Tim Courtis	 
	 	 
	 	 Chief Financial Officer	 

 

 

	 By:	/s/ Barton Hedges 	 	 
	 	 	 	 
	 	Barton Hedges	 	 
	 	 	 
	 	
Chief Underwriting Officer

 
	 	 

 

 Address: P.O. Box 31110

  802 West Bay Road

  George Town, Grand Cayman,

  KY1-1205 Cayman Islands

  Attn.: Tim Courtis

  Telephone: 345-943-4573

  Facsimile:  345-745-4576

 

 

 ACKNOWLEDGED AND AGREED AS OF JULY 21, 2009

 BANK OF AMERICA, N.A.

 

	 By:	/s/ Eugene Rabinovich 	 
	 	 	 
	 	Eugene Rabinovich 	 
	 	 
	 	Principal

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