Document:

Subsidiary Security Agreement

 Exhibit 10.3 
  
 SUBSIDIARY SECURITY AGREEMENT 
  
 THIS SUBSIDIARY SECURITY AGREEMENT (the “Security Agreement”) is made and entered into as of
January 19, 2006, by EACH OF THE UNDERSIGNED SUBSIDIARIES (each a “Grantor” and collectively the “Grantors”) for the benefit of U.S. BANK NATIONAL ASSOCIATION, a national banking association, as agent (the
“Agent”) for each of the lenders (the “Banks”) now or hereafter party to the Credit Agreement (as defined below). All capitalized terms used but not otherwise defined herein or pursuant to Section 1 hereof shall have
the respective meanings assigned thereto in the Credit Agreement (as defined below). 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Banks have agreed to provide to QC Holdings, Inc., a Kansas corporation (“Borrower”) certain credit facilities pursuant to the Credit Agreement dated as of January 19, 2006 by and among the Borrower, the
Agent and the Banks (as from time to time amended, revised, modified, supplemented or amended and restated, the “Credit Agreement”); and 
  
 WHEREAS, each Grantor is, directly or indirectly, a Subsidiary of the Borrower and will materially benefit from the Loans made and the Letter of
Credits issued and to be issued under the Credit Agreement; and 
  
 WHEREAS, contemporaneously with the execution of this Security Agreement, each Grantor is executing and delivering to Agent for the benefit of the Banks a guaranty agreement (the “Subsidiary Guaranty”) pursuant to which
such Grantor has guaranteed payment and performance of Borrower’s obligations under the Credit Agreement and the other Loan Documents; and 
  
 WHEREAS, each Grantor is required to enter into this Security Agreement pursuant to the terms of the Credit Agreement; and 
  
 WHEREAS, a material part of the consideration given in connection with
and as an inducement to the execution and delivery of the Credit Agreement by the Agent and the Banks was the obligation of the Borrower to cause each Grantor to enter into this Security Agreement; and 
  
 WHEREAS, the Banks are unwilling to extend and/or maintain the credit
facilities provided under the Loan Documents unless each Grantor enters into this Security Agreement; and 
  
 WHEREAS, each Grantor will materially benefit from the Loans to be made, and the Letters of Credit to be issued, under the Credit Agreement and the
Agent and the Banks are unwilling to enter into the Loan Documents unless the Grantor enters into this Security Agreement; 

 NOW, THEREFORE, in order to induce the Agent and the Banks to enter into the Loan Documents and to
make Loans and issue Letters of Credit pursuant to the Credit Agreement, and in further consideration of the premises and the mutual covenants contained herein, the parties hereto agree as follows: 
  
 1. Certain Definitions. Terms used in this Security
Agreement, not otherwise expressly defined herein or in the Credit Agreement, and for which meanings are provided in the Uniform Commercial Code of the State of Kansas (the “UCC”), shall have such meanings. The parties agree that with
respect to terms that describe items or types of Collateral, the parties intend to and do hereby give effect, upon their respective effective dates, to revisions to the UCC effective after the date hereof to the extent, but only to the extent, such
revisions either (i) provide meanings of terms not previously defined as items or types of property or (ii) expand the items of or interests in property that are included within a previously defined term, with the effect that each of such
terms describing items or types of property shall at all times be interpreted in its broadest sense. 
  
 2. Grant of Security Interest. Each Grantor hereby grants, as collateral security for the payment, performance and satisfaction of all of
its obligations and liabilities under the Subsidiary Guaranty (collectively, the “Secured Obligations”), to the Agent for the benefit of the Banks a continuing security interest in and to, and collaterally assigns to the Agent for the
benefit of the Banks, the following property of such Grantor or in which such Grantor has or may have or acquire an interest, whether now owned or existing or hereafter created, acquired or arising and wheresoever located, including the following:

  
 (a) All accounts, and including accounts
receivable, contracts, bills, acceptances, choses in action, and other forms of monetary obligations at any time owing to such Grantor arising out of property sold, leased, licensed, assigned or otherwise disposed of or for services rendered or to
be rendered by such Grantor and all of such Grantor’s rights with respect to any property represented thereby, whether or not delivered, property returned by customers and all rights as an unpaid vendor or lienor, including rights of stoppage
in transit and of recovering possession by proceedings including replevin and reclamation (collectively referred to hereinafter as “Accounts”); 
  
 (b) All inventory, including all goods manufactured or acquired for sale or lease, and any piece goods, raw materials, work in process,
finished merchandise, component materials, and all supplies, goods, incidentals, office supplies, packaging materials and any and all items used or consumed in the operation of the business of such Grantor or which may contribute to the finished
product or to the sale, promotion and shipment thereof, in which such Grantor now or at any time hereafter may have an interest, whether or not the same is in transit or in the constructive, actual or exclusive occupancy or possession of such
Grantor or is held by such Grantor or by others for such Grantor’s account (collectively referred to hereinafter as “Inventory”); 
  
 (c) All goods, including all machinery, equipment, motor vehicles (including those subject to and not subject to motor vehicle certificate
of title statutes), parts, supplies, apparatus, appliances, tools, patterns, molds, dies, blueprints, fittings, furniture, furnishings, fixtures and articles of tangible personal property of every description (collectively referred to hereinafter as
“Equipment”); 
  

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 (d) All general intangibles, including all rights now or hereafter accruing to such
Grantor under contracts, leases, agreements or other instruments to perform or receive services, to purchase or sell goods, to hold or use land or facilities, and to enforce all rights thereunder, all causes of action, corporate or business records,
inventions, designs, goodwill, trademarks, trade names, trade secrets, trade processes, licenses, permits, franchises, customer lists, computer programs and software, all payment intangibles, all claims under guaranties, tax refund claims, all
rights and claims against carriers and shippers, leases, all claims under insurance policies, all interests in general and limited partnerships, limited liability companies, and other Persons not constituting Investment Property (as defined below),
all rights to indemnification and all other intangible personal property and intellectual property of every kind and nature (collectively referred to hereinafter as “General Intangibles”); 
  
 (e) All chattel paper, including tangible chattel paper,
electronic chattel paper, or any hybrid thereof (collectively referred to hereinafter as “Chattel Paper”); 
  
 (f) All investment property, all other securities, security entitlements, securities accounts, commodity contracts and commodity accounts
of or maintained for the benefit of such Grantor, excluding from the foregoing the stock of QC Financial Services of North Carolina, Inc. (collectively referred to hereinafter as “Investment Property”); 
  
 (g) All instruments, including all promissory notes and
payday loan notes (collectively referred to hereinafter as “Instruments”); 
  
 (h) All documents, including warehouse receipts, bills of lading and other documents of title (collectively referred to hereinafter, as
“Documents”); 
  
 (i) All supporting
obligations pertaining to any of the foregoing, including all letter of credit rights (including rights to proceeds of letters of credit), personal or other checks, and all guaranties and other Contingent Obligations of any Person (collectively
referred to hereinafter as “Supporting Obligations”); 
  
 (j) The commercial tort claims, if any, identified on Schedule 2(j) hereto, as such Schedule may be supplemented from time to time in accordance with the terms hereof (collectively referred to hereinafter as
“Commercial Tort Claims”); 
  
 (k) All
deposits and deposit accounts; 
  
 (l) All books
and records relating to any of the forgoing (including customer data, credit files, ledgers, computer programs, printouts, and other computer materials and records (and all media on which such data, files, programs, materials and records are or may
be stored)); and 
  

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 (m) All proceeds, products and replacements of, accessions to, and substitutions for, any
of the foregoing, including without limitation proceeds of insurance policies insuring any of the foregoing. 
  
 (n) All of the property and interests in property described in subsections (a) through (l) are herein collectively referred to
as the “Collateral”. 
  
 3. Perfection. At
the time of execution of this Security Agreement, each Grantor shall have, to the extent expressly required by the terms hereof or of the Credit Agreement, or otherwise as the Agent may request, furnished the Agent with properly executed control
agreement, registrars’ certificates, issuer acknowledgments of the Agent’s interest in letter of credit rights, and evidence of the electronic identification of the Agent’s interest in electronic chattel paper and of the placement of
a restrictive legend on tangible chattel paper, as appropriate, with respect to Collateral in which either (i) a security interest can be perfected only by control or such electronic identification or restrictive legending, or (ii) a
security interest perfected by control or accompanied by such electronic identification or restrictive legending shall have priority as against a security interest perfected by Persons not having control or not accompanied by such electronic
identification or restrictive legending, in each case in form and substance acceptable to the Agent and sufficient under applicable law so that the Agent, for the benefit of the Banks, shall have a security interest in all such Collateral perfected
by control, subject only to Liens allowed to exist under Section 7.02(e) of the Credit Agreement. All financing statements (including all amendments thereto and continuations thereof), control agreements, certificates, acknowledgments,
stock powers and other documents, electronic identification, restrictive legends, and instruments furnished in connection with the creation, enforcement, protection, perfection or priority of the Agent’s security interest in Collateral,
including such items as are described above in this Section 3 are sometimes referred to herein as “Perfection Documents”. The delivery of possession of items of or evidencing Collateral, causing other Persons to execute and
deliver Perfection Documents as appropriate, the filing or recordation of Perfection Documents, and the taking of such other actions as may be necessary or advisable in the determination of the Agent to create, enforce, protect, perfect, or
establish or maintain the priority of, the security interest of the Agent for the benefit of the Banks in the Collateral is sometimes referred to herein as “Perfection Action”. 
  
 4. Maintenance of Security Interest; Further Assurances. 
  
 (a) Each Grantor will from time to time at its own expense,
deliver specific assignments of Collateral or such other Perfection Documents, and take such other or additional Perfection Action, as may be required by the terms of the Loan Documents or as the Agent may reasonably request in connection with the
administration or enforcement of this Security Agreement or related to the Collateral or any part thereof in order to carry out the terms of this Security Agreement, to perfect, protect, maintain the priority of or enforce the Agent’s security
interest in the Collateral, or otherwise to better assure and confirm unto the Agent its rights, powers and remedies for the benefit of the Banks hereunder. Without limiting the foregoing, each Grantor hereby irrevocably authorizes the Agent to file
(with, or to the extent permitted by applicable law, without the signature of the Grantor appearing thereon) financing statements or other Perfection Documents (including copies thereof) showing such Grantor as “debtor” at such time or

  

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times and in all filing offices as the Agent may from time to time determine to be necessary or advisable to perfect or protect the rights of the Agent and
the Banks hereunder, or otherwise to give effect to the transactions herein contemplated. 
  
 (b) Notwithstanding anything herein or in the other Loan Documents to the contrary, each Grantor may retain possession of all payday loan
promissory notes payable to such Grantor; provided, however, that so long as any Event of Default is in effect, each Grantor shall promptly deliver to the Agent, if the Agent so requests, the originals of all such promissory notes together with any
checks and supporting obligations held for the payment of such promissory notes. 
  
 (c) With respect to any and all Collateral, each Grantor agrees to do and cause to be done all things necessary to perfect, maintain the
priority of and keep in full force the security interest granted in favor of the Agent for the benefit of the Banks, including, but not limited to, the prompt payment upon demand therefor by the Agent of all fees and expenses (including documentary
stamp, excise or intangibles taxes) incurred in connection with the preparation, delivery, or filing of any Perfection Document or the taking of any Perfection Action to perfect, protect or enforce a security interest in Collateral in favor of the
Agent for the benefit of the Banks, subject only to Permitted Liens. All amounts not so paid when due shall constitute additional Secured Obligations and (in addition to other rights and remedies resulting from such nonpayment) shall bear interest
from the date of demand until paid in full at the Default Rate. 
  
 (d) Each Grantor agrees to maintain among its books and records appropriate notations or evidence of, and to make or cause to be made appropriate disclosure upon its financial statements of, the security interest
granted hereunder to the Agent for the benefit of the Banks. 
  
 5. Receipt of Payment. In the event an Event of Default shall occur and be continuing and a Grantor (or any of its Affiliates, Subsidiaries, stockholders, directors, officers, employees or agents) shall receive any proceeds of
Collateral, including without limitation monies, checks, notes, drafts or any other items of payment, each Grantor shall hold all such items of payment in trust for the Agent for the benefit of the Banks, and as the property of the Agent for the
benefit of the Banks, separate from the funds and other property of such Grantor, and no later than the first Business Day following the receipt thereof, at the election of the Agent, such Grantor shall cause such Collateral to be forwarded to the
Agent for its custody, possession and disposition on behalf of the Banks in accordance with the terms hereof and of the other Loan Documents. 
  
 6. Preservation and Protection of Collateral. 
  
 (a) The Agent shall be under no duty or liability with respect to the collection, protection or preservation of the Collateral, or
otherwise, except for the use of reasonable care in the custody and preservation thereof while in its possession and to the extent expressly contemplated under Section 25. Each Grantor shall be responsible for the safekeeping of its
Collateral, and in no event shall the Agent have any responsibility for (i) any loss or damage thereto or destruction thereof occurring or arising in any manner or 

  

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fashion from any cause, (ii) any diminution in the value thereof, or (iii) any act or default of any carrier, warehouseman, bailee or forwarding
agency thereof or other Person in any way dealing with or handling such Collateral. 
  
 (b) Each Grantor shall keep and maintain its tangible personal property Collateral in good operating condition and repair, ordinary wear
and tear excepted. 
  
 (c) Each Grantor agrees
(i) to pay when due all taxes, charges and assessments against the Collateral in which it has any interest, unless being contested in good faith by appropriate proceedings diligently conducted and against which adequate reserves have been
established in accordance with GAAP applied on a consistent basis and evidenced to the satisfaction of the Agent in the nature of levy or foreclosure are effectively stayed, and (ii) to cause to be terminated and released all Liens on the
Collateral other than Liens in respect of such Collateral expressly permitted under Section 7.02(e) of the Credit Agreement (“Permitted Liens”). 
  
 (d) Upon the failure of any Grantor to so pay or contest such taxes, charges, or assessments, or cause such
Liens to be terminated, the Agent at its option may pay or contest any of them or amounts relating thereto (the Agent having the sole right to determine the legality or validity and the amount necessary to discharge such taxes, charges, Liens or
assessments) but shall not have any obligation to make any such payment or contest. All sums so disbursed by the Agent, including reasonable attorneys’ fees, court costs, expenses and other charges related thereto, shall be payable on demand by
the applicable Grantor to the Agent and shall be additional Secured Obligations secured by the Collateral, and any amounts not so paid on demand (in addition to other rights and remedies resulting from such nonpayment) shall bear interest from the
date of demand until paid in full at the Default Rate. 
  
 7.
Status of Grantors and Collateral Generally. Each Grantor represents and warrants to, and covenants with, the Agent for the benefit of the Banks, with respect to itself and the Collateral as to which it has or acquires any interest, that:

  
 (a) It is (or as to Collateral acquired after
the date hereof will be upon the acquisition of the same) and, except as permitted by the Credit Agreement and subsection (b) of this Section 7, will continue to be, the owner of the Collateral, free and clear of all Liens, other
than the security interest hereunder in favor of the Agent for the benefit of the Banks and Permitted Liens, and that it will at its own cost and expense defend such Collateral and any products and proceeds thereof against all claims and demands of
all Persons (other than holders of Permitted Liens) at any time claiming the same or any interest therein adverse to the Agent. Upon the failure of any Grantor to so defend, the Agent may do so at its option but shall not have any obligation to do
so. All sums so disbursed by the Agent, including reasonable attorneys’ fees, court costs, expenses and other charges related thereto, shall be payable on demand by the applicable Grantor to the Agent and shall be additional Secured Obligations
secured by the Collateral, and any amounts not so paid on demand (in addition to other rights and remedies resulting from such nonpayment) shall bear interest from the date of demand until paid in full at the Default Rate. 
  

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 (b) It shall not (i) sell, assign, transfer, lease, license or otherwise dispose of
any of, or grant any option with respect to, the Collateral, except for dispositions permitted under the Credit Agreement, (ii) create or suffer to exist any Lien upon or with respect to any of the Collateral except for the security interests
created by this Security Agreement and Permitted Liens, or (iii) take any other action in connection with any of the Collateral that would materially impair the value of the interest or rights of such Grantor in the Collateral taken as a whole
or that would materially impair the interest or rights of the Agent for the benefit of the Banks. 
  
 (c) It has full power, legal right and lawful authority to enter into this Security Agreement and to perform its terms, including the
grant of the security interests in the Collateral herein provided for. 
  
 (d) No authorization, consent, approval or other action by, and no notice to or filing with, any Governmental Authority or any other Person is required either (i) for the grant by such Grantor of the security
interests granted hereby or for the execution, delivery or performance of this Security Agreement by such Grantor, or (ii) for the perfection of or the exercise by the Agent, on behalf of the Banks, of its rights and remedies hereunder, except
for action required by the Uniform Commercial Code to perfect the security interest conferred hereunder. 
  
 (e) No effective financing statement or other Perfection Document similar in effect, nor any other Perfection Action, covering all or any
part of the Collateral purported to be granted or taken by or on behalf of such Grantor (or by or on behalf of any other Person and which remains effective as against all or any part of the Collateral) has been filed in any recording office,
delivered to another Person for filing (whether upon the occurrence of a contingency or otherwise), or otherwise taken, as the case may be, except such as pertain to Permitted Liens and such as may have been filed for the benefit of, delivered to,
or taken in favor of, the Agent for the benefit of the Banks in connection with the security interests conferred hereunder. 
  
 (f) Schedule 7(f) attached hereto contains true and complete information as to each of the following: (i) the exact legal name
of each Grantor as it appears in its organizational documents as of the date hereof and at any time during the five (5) year period ending as of the date hereof (the “Covered Period”), (ii) the jurisdiction of formation and form
of organization of each Grantor, (iii) each address of the chief executive office of each Grantor as of the date hereof and at any time during the Covered Period, (iv) all trade names or trade styles used by such Grantor as of the date
hereof, (v) the address of each location of such Grantor at which any tangible personal property Collateral is located as of the date hereof and, with respect to each location that is not owned beneficially and of record by such Grantor, such
Grantor will provide to Agent, upon the request of Agent, the name and address of the owner thereof. No Grantor shall change its name or its jurisdiction of formation without providing Agent fifteen (15) days prior written notice thereof.

  

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 (g) No Grantor shall engage in any consignment transaction in respect of any of the
Collateral, whether as consignee or consignor, without the prior written consent of the Agent in each instance. 
  
 8. Inspection. The Agent (by any of its officers, employees and agents), on behalf of the Banks, shall have the right upon prior notice to
an executive officer of any Grantor, and at any reasonable times during such Grantor’s usual business hours, to inspect the Collateral, all records related thereto (and to make extracts or copies from such records), and the premises upon which
any of the Collateral is located, to discuss such Grantor’s affairs and finances with any Person and to verify with any Person the amount, quality, quantity, value and condition of, or any other matter relating to, the Collateral. Upon or after
the occurrence and during the continuation of an Event of Default, the Agent, acting in a commercially reasonable manner, may at any time and from time to time employ and maintain on such Grantor’s premises a custodian selected by the Agent who
shall have full authority to do all acts necessary to protect the Agent’s (for the benefit of the Banks) interest. All reasonable expenses incurred by the Agent, on behalf of the Banks, by reason of the employment of such custodian shall be
paid by such Grantor on demand from time to time and shall be added to the Secured Obligations secured by the Collateral, and any amounts not so paid on demand (in addition to other rights and remedies resulting from such nonpayment) shall bear
interest from the date of demand until paid in full at the Default Rate. 
  
 9. [Intentionally Omitted]. 
  
 10. Casualty and Liability Insurance Required. 
  
 (a) Each Grantor will keep the Collateral continuously insured against such risks in a manner consistent with the past practice of each
Grantor and otherwise as required under Section 7.01(c) of the Credit Agreement. 
  
 (b) Each insurance policy obtained in satisfaction of the requirements of Section 10(a): 
  
 (i) may be provided by blanket policies now or hereafter
maintained by each or any Grantor or by the Borrower; 
  
 (ii) shall be issued by such insurer (or insurers) as shall be financially responsible, of recognized standing and reasonably acceptable to the Agent; 
  

(iii) shall be in such form and have such provisions (including without limitation the loss payable clause, the waiver of subrogation
clause, the deductible amount, if any, and the standard mortgagee endorsement clause) as are generally considered standard provisions for the type of insurance involved and are reasonably acceptable in all respects to the Agent; 
  
 (iv) shall prohibit cancellation or substantial
modification, termination or lapse in coverage by the insurer without at least thirty (30) days’ prior written notice to the Agent, except for non-payment of premium, as to which such policies shall provide for at least ten
(10) days’ prior written notice to the Agent; 
  

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 (c) without limiting the generality of the foregoing, all insurance policies where
applicable under Section 10(a)(i) carried on the Collateral shall name the Agent, for the benefit of the Banks, as loss payee and as a party insured thereunder in respect of any claim for payment. 
  
 (d) Prior to expiration of any such policy, such Grantor
shall furnish the Agent with evidence satisfactory to the Agent that the policy or certificate has been renewed or replaced or is no longer required by this Security Agreement. 
  
 (e) Each Grantor hereby makes, constitutes and appoints the Agent (and all officers, employees or agents
designated by the Agent), for the benefit of the Banks, as such Grantor’s true and lawful attorney (and agent-in-fact) for the purpose of making, settling and adjusting claims under such policies of insurance, endorsing the name of such Grantor
on any check, draft, instrument or other item or payment for the proceeds of such policies of insurance and for making all determinations and decisions with respect to such policies of insurance, which appointment is coupled with an interest and is
irrevocable; provided, however, that the powers pursuant to such appointment shall be exercisable only upon the occurrence and during the continuation of an Event of Default. 
  
 (f) In the event such Grantor shall fail to maintain, or
fail to cause to be maintained, the full insurance coverage required hereunder or shall fail to keep any of its Collateral in good repair and good operating condition, the Agent may (but shall be under no obligation to), without waiving or releasing
any Secured Obligation or Default or Event of Default by such Grantor hereunder, contract for the required policies of insurance and pay the premiums on the same or make any required repairs, renewals and replacements; and all sums so disbursed by
Agent, including reasonable attorneys’ fees, court costs, expenses and other charges related thereto, shall be payable on demand by such Grantor to the Agent, shall be additional Secured Obligations secured by the Collateral, and (in addition
to other rights and remedies resulting from such nonpayment) shall bear interest from the date of demand until paid in full at the Default Rate. 
  
 (g) Each Grantor agrees that to the extent that it shall fail to maintain, or fail to cause to be maintained, the full insurance coverage
required by Section 10(a), it shall in the event of any loss or casualty pay promptly to the Agent, for the benefit of the Banks, to be held in a separate account for application in accordance with the provisions of Sections
10(h), such amount as would have been received as Net Proceeds (as hereinafter defined) by the Agent, for the benefit of the Banks, under the provisions of Section 10(h) had such insurance been carried to the extent required.

  
 (h) The Net Proceeds of the insurance carried
pursuant to the provisions of Sections 10(a)(ii) and 10(a)(iii) shall be applied by such Grantor toward satisfaction of the claim or liability with respect to which such insurance proceeds may be paid. 
  
 (i) The Net Proceeds of the insurance carried with respect
to the Collateral pursuant to the provisions of Section 10(a)(i) hereof shall, as long as no Event of Default shall have occurred and be continuing, be paid to Grantor and applied as follows: (1) if such Net Proceeds are $500,000 or
less, as Grantor shall elect, or (2) if such Net Proceeds 

  

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are greater than $500,000, then after any loss under any such insurance and payment of the proceeds of such insurance, each Grantor shall have a period of
thirty (30) days after payment of the insurance proceeds with respect to such loss to elect to either (x) repair or replace the Collateral so damaged, (y) deliver such Net Proceeds to the Agent, for the benefit of the Banks, as
additional Collateral or (z) apply such Net Proceeds to the acquisition of tangible assets constituting Collateral used or useful in the conduct of the business of such Grantor, subject to the provisions of this Security Agreement. If such
Grantor elects to repair or replace the Collateral so damaged, such Grantor agrees the Collateral shall be repaired to a condition substantially similar to or of better quality or higher value than its condition prior to damage or replaced with
Collateral in a condition substantially similar to or of better quality or higher value than the condition of the Collateral so replaced prior to damage. At all times during which an Event of Default shall have occurred and be continuing, the Agent
shall be entitled to receive direct and immediate payment of the proceeds of such insurance and such Grantor shall take all action as the Agent may reasonably request to accomplish such payment. Notwithstanding the foregoing, in the event such
Grantor shall receive any such proceeds, such Grantor shall immediately deliver such proceeds to such Agent for the benefit of the Banks as additional Collateral, and pending such delivery shall hold such proceeds in trust for the benefit of the
Agent on behalf of the Banks and keep the same segregated from its other funds. 
  
 (j) “Net Proceeds” when used with respect to any insurance proceeds shall mean the gross proceeds from such proceeds, award or
other amount, less all taxes, fees and expenses (including attorneys’ fees) incurred in the realization thereof. 
  
 (k) In case of any material damage to, destruction or loss of, or claim or proceeding against, all or any material part of the Collateral
pledged hereunder by a Grantor, such Grantor shall give prompt notice thereof to the Agent. Each such notice shall describe generally the nature and extent of such damage, destruction, loss, claim or proceeding. Subject to Section 10(d),
each Grantor is hereby authorized and empowered to adjust or compromise any loss under any such insurance other than losses relating to claims made directly against any the Agent or any Bank as to which the insurance described in
Section 10(a)(ii) or (iii) is applicable. 
  
 11. Rights and Remedies Upon Event of Default. Upon the occurrence and during the continuation of an Event of Default, the Agent shall have the following rights and remedies on behalf of the Banks in addition to any rights and
remedies set forth elsewhere in this Security Agreement or the other Loan Documents, all of which may be exercised with or, if allowed by law, without notice to a Grantor: 
  
 (a) All of the rights and remedies of a secured party under the UCC or under other applicable law, all of
which rights and remedies shall be cumulative, and none of which shall be exclusive, to the extent permitted by law, in addition to any other rights and remedies contained in this Security Agreement or any other Loan Document; 
  
 (b) The right to foreclose the Liens and security interests
created under this Security Agreement by any available judicial procedure or without judicial process; 
  

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 (c) The right to (i) enter upon the premises of a Grantor through self-help and
without judicial process, without first obtaining a final judgment or giving such Grantor notice or opportunity for a hearing on the validity of the Agent’s claim and without any obligation to pay rent to such Grantor, or any other place or
places where any Collateral is located and kept, and remove the Collateral therefrom to the premises of the Agent or any agent of the Agent, for such time as the Agent may desire, in order effectively to collect or liquidate the Collateral, and
(ii) require such Grantor or any bailee or other agent of such Grantor to assemble the Collateral and make it available to the Agent at a place to be designated by the Agent that is reasonably convenient to both parties; 
  
 (d) The right to (i) exercise all of a Grantor’s
rights and remedies with respect to the collection of Accounts, Chattel Paper, Instruments, Supporting Obligations and General Intangibles (collectively, “Payment Collateral”), including the right to demand payment thereof and enforce
payment, by legal proceedings or otherwise; (ii) settle, adjust, compromise, extend or renew all or any Payment Collateral or any legal proceedings pertaining thereto; (iii) discharge and release all or any Payment Collateral;
(iv) take control, in any manner, of any item of payment or proceeds referred to in Section 5 above; (v) prepare, file and sign a Grantor’s name on any Proof of Claim in bankruptcy, notice of Lien, assignment or
satisfaction of Lien or similar document in any action or proceeding adverse to any obligor under any Payment Collateral or otherwise in connection with any Payment Collateral; (vi) endorse the name of a Grantor upon any chattel paper,
document, instrument, invoice, freight bill, bill of lading or similar document or agreement relating to any Collateral; (vii) use the information recorded on or contained in any data processing equipment and computer hardware and software
relating to any Collateral to which a Grantor has access; (viii) open such Grantor’s mail and collect any and all amounts due to such Grantor from any Account Debtors or other obligor in respect of Payment Collateral; (ix) take over
such Grantor’s post office boxes or make other arrangements as the Agent, on behalf of the Banks, deems necessary to receive such Grantor’s mail relative to the Payment Collateral, including notifying the post office authorities to change
the address for delivery of such mail to such address as the Agent, on behalf of the Banks, may designate; (x) notify any or all Account Debtors or other obligor on any Payment Collateral that such Payment Collateral has been assigned to the
Agent for the benefit of the Banks and that Agent has a security interest therein for the benefit of the Banks (provided that the Agent may at any time give such notice to an Account Debtor that is a department, agency or authority of the United
States government); each Grantor hereby agrees that any such notice, in the Agent’s sole discretion, may (but need not) be sent on such Grantor’s stationery, in which event such Grantor shall co-sign such notice with the Agent;
(xi) require a Grantor to establish a lockbox account with the Agent, which lockbox shall be under the control of the Agent and to which payment of all Accounts shall be directed upon demand of the Agent; and (xii) do all acts and things
and execute all documents necessary, in Agent’s sole discretion, to collect the Payment Collateral; and 
  
 (e) The right to sell all or any Collateral in its then existing condition, or after any further manufacturing or processing thereof, at
such time or times, at public or private sale or sales, with such notice as may be required by law, in lots or in bulk, for cash or on credit, with or without representations and warranties, all as the Agent, in its 

  

 11 

 
sole discretion, may deem advisable. The Agent shall have the right to conduct such sales on a Grantor’s premises or elsewhere and shall have the right
to use a Grantor’s premises without charge for such sales for such reasonable time or times as is necessary to conduct such sales. The Agent may, if it deems it reasonable, postpone or adjourn any sale of the Collateral from time to time by an
announcement at the time and place of such postponed or adjourned sale, and such sale may, without further notice, be made at the time and place to which it was so adjourned. Each Grantor agrees that the Agent has no obligation to preserve rights to
the Collateral against prior parties or to marshall any Collateral for the benefit of any Person. The Agent for the benefit of the Banks is hereby granted a license or other right to use, without charge, each Grantor’s labels, patents,
copyrights, rights of use of any name, trade secrets, trade names, trademarks and advertising matter, or any property of a similar nature, as it pertains to the Collateral, in completing production of, advertising for sale and selling any Collateral
and a Grantor’s rights under any license and any franchise agreement shall inure to the Agent’s benefit. If any of the Collateral shall require repairs, maintenance, preparation or the like, or is in process or other unfinished state, the
Agent shall have the right, but shall not be obligated, to perform such repairs, maintenance, preparation, processing or completion of manufacturing for the purpose of putting the same in such saleable form as the Agent shall deem appropriate, but
the Agent shall have the right to sell or dispose of the Collateral without such processing and no Grantor shall have any claim against the Agent for the value that may have been added to such Collateral with such processing. In addition, each
Grantor agrees that in the event notice is necessary under applicable law, written notice mailed to such Grantor in the manner specified herein ten (10) days prior to the date of public sale of any of the Collateral or prior to the date after
which any private sale or other disposition of the Collateral will be made shall constitute commercially reasonable notice to such Grantor. All notice is hereby waived with respect to any of the Collateral which threatens to decline speedily in
value or is of a type customarily sold on a recognized market. The Agent may purchase all or any part of the Collateral at public or, if permitted by law, private sale, free from any right of redemption which is hereby expressly waived by such
Grantor and, in lieu of actual payment of such purchase price, may set off the amount of such price against the Secured Obligations. Each Grantor recognizes that the Agent may be unable to effect a public sale of certain of the Collateral by reason
of certain prohibitions contained in the Securities Act of 1933, as amended (the “Securities Act”), and applicable state law, and may be otherwise delayed or adversely affected in effecting any sale by reason of present or future
restrictions thereon imposed by governmental authorities (“Affected Collateral”), and that as a consequence of such prohibitions and restrictions the Agent may be compelled (i) to resort to one or more private sales to a restricted
group of purchasers who will be obliged to agree, among other things, to acquire Affected Collateral for their own account, for investment and not with a view to the distribution or resale thereof, or (ii) to seek regulatory approval of any
proposed sale or sales, or (iii) to limit the amount of Affected Collateral sold to any Person or group. Each Grantor agrees and acknowledges that private sales so made may be at prices and upon terms less favorable to such Grantor than if such
Affected Collateral was sold either at public sales or at private sales not subject to other regulatory restrictions, and that the Agent has no obligation to delay the sale of any Affected Collateral for the period of time necessary to permit the
Grantor or any other 
  

 12 

 Person to register or otherwise qualify them under or exempt them from any applicable restriction, even
if such Grantor or other Person would agree to register or otherwise qualify or exempt such Affected Collateral so as to permit a public sale under the Securities Act or applicable state law. Each Grantor further agrees, to the extent permitted by
applicable law, that the use of private sales made under the foregoing circumstances to dispose of Affected Collateral shall be deemed to be dispositions in a commercially reasonable manner. Each Grantor hereby acknowledges that a ready market may
not exist for Affected Collateral that is not traded on a national securities exchange or quoted on an automated quotation system. 
  
 (f) The net cash proceeds resulting from the collection, liquidation, sale, or other disposition of the Collateral shall be applied first
to the expenses (including all attorneys’ fees) of retaking, holding, storing, processing and preparing for sale, selling, collecting, liquidating and the like, and then to the satisfaction of all Secured Obligations in such manner as Agent may
determine in its sole discretion. Each Grantor shall be liable to the Agent, for the benefit of the Banks, and shall pay to the Agent, for the benefit of the Banks, on demand any deficiency which may remain after such sale, disposition, collection
or liquidation of the Collateral. In the event any surplus of net cash proceeds exists after satisfaction of all Secured Obligations, such surplus shall be promptly paid to the Grantor(s). 
  
 12. Attorney-in-Fact. Each Grantor hereby appoints the Agent as
the Grantor’s attorney-in-fact for the purposes of carrying out the provisions of this Security Agreement and taking any action and executing any instrument which the Agent may deem necessary or advisable to accomplish the purposes hereof,
which appointment is irrevocable and coupled with an interest; provided, that the Agent shall have and may exercise rights under this power of attorney only upon the occurrence and during the continuance of an Event of Default. Without
limiting the generality of the foregoing, upon the occurrence and during the continuance of an Event of Default, the Agent shall have the right and power: 
  
 (a) to ask, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due
under or in respect of any of the Collateral; 
  
 (b) to receive, endorse and collect any drafts or other instruments, documents and chattel paper in connection with clause (a) above; 
  
 (c) to endorse such Grantor’s name on any checks, notes, drafts or any other payment relating to or constituting proceeds of the
Collateral which comes into the Agent’s possession or the Agent’s control, and deposit the same to the account of the Agent, for the benefit of the Banks, on account and for payment of the Secured Obligations; 
  
 (d) to file any claims or take any action or institute any
proceedings that the Agent may deem necessary or desirable for the collection of any of the Collateral or otherwise to enforce the rights of the Agent, for the benefit of the Banks, with respect to any of the Collateral; and 
  

 13 

 (e) to execute, in connection with any sale or other disposition of Collateral provided
for herein, any endorsement, assignments, or other instruments of conveyance or transfer with respect thereto. 
  
 13. Reinstatement. The granting of a security interest in the Collateral and the other provisions hereof shall continue to be effective or
be reinstated, as the case may be, if at any time any payment of any of the Secured Obligations is rescinded or must otherwise be returned by Agent or any Bank, whether upon the insolvency, bankruptcy or reorganization of any Grantor or any
Guarantor or otherwise, all as though such payment had not been made. The provisions of this Section 13 shall survive repayment of all of the Secured Obligations and the termination or expiration of this Security Agreement in any manner,
including but not limited to termination upon occurrence of the Termination Date; provided, this provision shall not alter the Agent’s obligation with respect to termination contained in Section 24 hereof. 
  
 14. Certain Waivers by the Grantors. Each Grantor waives to the
extent permitted by applicable law (a) any right to require the Agent or any other obligee of the Secured Obligations to (x) proceed against any Person, including without limitation any Guarantor, (y) proceed against or exhaust any
Collateral or other collateral for the Secured Obligations, or (z) pursue any other remedy in its power; (b) any defense arising by reason of any disability or other defense of any other Person, or by reason of the cessation from any cause
whatsoever of the liability of any other Person, (c) any right of subrogation, (d) any defense or claim arising by reason of any impairment of any of the Collateral, (e) any right to enforce any remedy which the Agent or any other
obligee of the Secured Obligations now has or may hereafter have against any other Person and any benefit of and any right to participate in any collateral or security whatsoever now or hereafter held by the Agent for the benefit of the Banks,
(f) require the Agent or any Bank to disclose to the Grantor any information which it may now have or hereafter acquire regarding the financial condition of the Borrower, and (g) provide notices of default or nonperformance by the Borrower
to the Grantor. The Grantors authorize the Agent and the Banks, without affecting the Grantors’ obligations under this Agreement, to enter into agreements with the Borrower to change the interest rate on or renew the Borrower’s
Obligations, accelerate, extend, compromise or otherwise change the repayment terms of the Borrower’s Obligations. Upon the occurrence of an Event of Default, each Grantor authorizes each Secured Party and each obligee of the Secured
Obligations without notice (except notice required by applicable law) or demand and without affecting its liability hereunder or under the Loan Documents from time to time to: (i) take and hold security, other than the Collateral herein
described, for the payment of such Secured Obligations or any part thereof, and exchange, enforce, waive and release the Collateral herein described or any part thereof or any such other security; and (ii) apply such Collateral or other
security and direct the order or manner of sale thereof as such Agent or obligee in its discretion may determine. 
  
 The Agent may at any time deliver (without representation, recourse or warranty) the Collateral or any part thereof to a Grantor and the receipt thereof
by such Grantor shall be a complete and full acquittance for the Collateral so delivered, and the Agent shall thereafter be discharged from any liability or responsibility therefor. 
  
 15. Continued Powers. Until the Termination Date shall have occurred, the power of sale and other rights,
powers and remedies granted to the Agent for the benefit of the Banks 

  

 14 

 
hereunder shall continue to exist and, upon the occurrence and during the continuation of an Event of Default, may be exercised by the Agent at any time and
from time to time irrespective of the fact that any of the Secured Obligations or any part thereof may have become barred by any statute of limitations or that any part of the liability of any Grantor may have ceased. 
  
 16. Other Rights. The rights, powers and remedies given to the
Agent for the benefit of the Banks by this Security Agreement shall be in addition to all rights, powers and remedies given to the Agent or any Bank under any Loan Documents or by virtue of any statute or rule of law. Any forbearance or failure or
delay by the Agent in exercising any right, power or remedy hereunder shall not be deemed to be a waiver of such right, power or remedy, and any single or partial exercise of any right, power or remedy hereunder shall not preclude the further
exercise thereof; and every right, power and remedy of the Agent and the Banks shall continue in full force and effect until such right, power or remedy is specifically waived in accordance with the terms of the Credit Agreement. 
  
 17. Anti-Marshaling Provisions. The right is hereby given by
each Grantor to the Agent, for the benefit of the Banks, to make releases (whether in whole or in part) of all or any part of the Collateral agreeable to the Agent without notice to, or the consent, approval or agreement of other parties and
interests, including junior lienors, which releases shall not impair in any manner the validity of or priority of the Liens and security interests in the remaining Collateral conferred hereunder, nor release any Grantor from personal liability for
the Secured Obligations. Notwithstanding the existence of any other security interest in the Collateral held by the Agent, for the benefit of the Banks, the Agent shall have the right to determine the order in which any or all of the Collateral
shall be subjected to the remedies provided in this Security Agreement. Each Grantor hereby waives any and all right to require the marshaling of assets in connection with the exercise of any of the remedies permitted by applicable law or provided
herein or in any Loan Documents. 
  
 18. Entire
Agreement. This Security Agreement, together with the Credit Agreement and other Loan Documents, constitutes and expresses the entire understanding between the parties hereto with respect to the subject matter hereof, and supersedes all
prior negotiations, agreements and understandings, inducements, commitments or conditions, express or implied, oral or written, except as contained in the Loan Documents. The express terms hereof control and supersede any course of performance or
usage of the trade inconsistent with any of the terms hereof. Neither this Security Agreement nor any portion or provision hereof may be changed, altered, modified, supplemented, discharged, canceled, terminated, or amended orally or in any manner
other than as provided in the Credit Agreement. 
  
 19.
Third Party Reliance. Each Grantor hereby consents and agrees that all issuers of or obligors in respect of any Collateral, and all securities intermediaries, warehousemen, bailees, public officials and other Persons having any interest
in, possession of, control over or right, privilege, duty or discretion in respect of, any Collateral shall be entitled to accept the provisions hereof as conclusive evidence of the right of the Agent, on behalf of the Banks, to exercise its rights
hereunder with respect to the Collateral, notwithstanding any other notice or direction to the contrary heretofore or hereafter given by any Grantor or any other Person to any of such Persons. 
  

 15 

 20. Binding Agreement; Assignment. This Security Agreement, and the terms, covenants and
conditions hereof, shall be binding upon and inure to the benefit of the parties hereto, and to their respective successors and assigns, except that no Grantor shall be permitted to assign this Security Agreement or any interest herein or, except as
expressly permitted herein or in the Credit Agreement, in the Collateral or any part thereof, or otherwise, except as expressly permitted herein or in the Credit Agreement, pledge, encumber or grant any option with respect to the Collateral or any
part thereof. Without limiting the generality of the foregoing sentence of this Section 20, any Bank may assign to one or more Persons, or grant to one or more Persons participations in or to, all or any part of its rights and
obligations under the Credit Agreement (to the extent permitted by the Credit Agreement); and to the extent of any such assignment or participation such other Person shall, to the fullest extent permitted by law, thereupon become vested with all the
benefits in respect thereof granted to such Bank herein or otherwise, subject however, to the provisions of the Credit Agreement, including Article IX thereof (concerning the Agent) and Section 11.07 thereof (concerning
assignments and participations). All references herein to the Agent and to the Banks shall include any successor thereof or permitted assignee, and any other obligees from time to time of the Secured Obligations. 
  
 21. Intentionally Omitted. 
  
 22. Severability. The provisions of this Security Agreement are
independent of and separable from each other. If any provision hereof shall for any reason be held invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of any other provision hereof, but this
Security Agreement shall be construed as if such invalid or unenforceable provision had never been contained herein. 
  
 23. Counterparts. This Security Agreement may be executed in any number of counterparts each of which when so executed and delivered shall
be deemed an original, and it shall not be necessary in making proof of this Security Agreement to produce or account for more than one such counterpart executed by the Grantor against whom enforcement is sought. 
  
 24. Termination. Subject to the provisions of
Section 13, this Security Agreement and all obligations of the Grantors hereunder (excluding those obligations and liabilities that expressly survive such termination) shall terminate without delivery of any instrument or performance of
any act by any party on the Termination Date. Upon such termination of this Security Agreement, the Agent shall, at the request and sole expense of the Grantors, promptly deliver to the Grantors such termination statements and take such further
actions as the Grantors may reasonably request to terminate of record, or otherwise to give appropriate notice of the termination of, any Lien conferred hereunder. 
  
 25. Notices. Any notice required or permitted hereunder shall be given (a) with respect to any Grantor,
at the address for the giving of notice then in effect under the Credit Agreement for the Borrower, and (b) with respect to the Agent or a Bank, at the Agent’s address indicated in the Credit Agreement. All such addresses may be modified,
and all such notices shall be given and shall be effective, as provided in Section 11.02 of the Credit Agreement. 
  

 16 

 26. Rules of Interpretation. The rules of interpretation contained in Sections 1.02
of the Credit Agreement shall be applicable to this Security Agreement and are hereby incorporated by reference. All representations and warranties contained herein shall survive the delivery of documents and any extension of credit referred to
herein or secured hereby. 
  
 27. Governing Law;
Waivers. 
  
 (a) THIS SECURITY AGREEMENT
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF KANSAS APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE; PROVIDED THAT (i) WITH RESPECT TO THOSE INSTANCES IN WHICH THE APPLICABLE CHOICE
OF LAWS RULES OF SUCH STATE, INCLUDING SECTION 9-103 OF THE UCC, REQUIRE THAT THE MANNER OF CREATION OF A SECURITY INTEREST IN SPECIFIC COLLATERAL OR THE MANNER OR EFFECT OF PERFECTION OR NONPERFECTION OR THE RULES GOVERNING PRIORITY OF SECURITY
INTERESTS ARE TO BE GOVERNED BY THE LAWS OF ANOTHER JURISDICTION, THEN THE LAWS OF SUCH OTHER JURISDICTION SHALL GOVERN SUCH MATTERS, AND (ii) IN THOSE INSTANCES IN WHICH THE LAWS OF THE JURISDICTION IN WHICH COLLATERAL IS LOCATED GOVERN
MATTERS PERTAINING TO THE METHODS AND EFFECT OF REALIZING ON COLLATERAL, SUCH LAWS SHALL BE GIVEN EFFECT WITH RESPECT TO SUCH MATTERS. 
  
 (b) EACH GRANTOR HEREBY EXPRESSLY AND IRREVOCABLY AGREES AND CONSENTS THAT ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS SECURITY AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREIN MAY BE INSTITUTED IN ANY STATE OR FEDERAL COURT SITTING IN THE COUNTY OF JOHNSON, STATE OF KANSAS, UNITED STATES OF AMERICA AND, BY THE EXECUTION AND DELIVERY OF THIS SECURITY
AGREEMENT, EXPRESSLY WAIVES ANY OBJECTION THAT IT MAY HAVE NOW OR HEREAFTER TO THE LAYING OF THE VENUE OR TO THE JURISDICTION OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND IRREVOCABLY SUBMITS GENERALLY AND UNCONDITIONALLY TO THE JURISDICTION OF ANY
SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING. 
  
 (c) EACH GRANTOR AGREES THAT SERVICE OF PROCESS MAY BE MADE BY PERSONAL SERVICE OF A COPY OF THE SUMMONS AND COMPLAINT OR OTHER LEGAL PROCESS IN ANY SUCH SUIT, ACTION OR PROCEEDING, OR BY REGISTERED OR CERTIFIED MAIL (POSTAGE PREPAID) TO
THE ADDRESS OF SUCH PARTY PROVIDED IN SECTION 26 OR BY ANY OTHER METHOD OF SERVICE PROVIDED FOR UNDER THE APPLICABLE LAWS IN EFFECT IN THE STATE OF KANSAS. 
  
 (d) NOTHING CONTAINED IN SUBSECTIONS (b) OR (c) HEREOF SHALL PRECLUDE ANY SECURED
PARTY FROM BRINGING ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS 

  

 17 

 
SECURITY AGREEMENT OR THE OTHER LOAN DOCUMENTS IN THE COURTS OF ANY PLACE WHERE ANY OTHER PARTY OR ANY OF SUCH PARTY’S PROPERTY OR ASSETS MAY BE FOUND
OR LOCATED. TO THE EXTENT PERMITTED BY THE APPLICABLE LAWS OF ANY SUCH JURISDICTION, EACH GRANTOR HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT AND EXPRESSLY WAIVES, IN RESPECT OF ANY SUCH SUIT, ACTION OR PROCEEDING, THE
JURISDICTION OF ANY OTHER COURT OR COURTS WHICH NOW OR HEREAFTER, BY REASON OF ITS PRESENT OR FUTURE DOMICILE, OR OTHERWISE, MAY BE AVAILABLE UNDER APPLICABLE LAW. 
  
 (e) IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS OR REMEDIES UNDER OR RELATED TO THIS
SECURITY AGREEMENT OR ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR THAT MAY IN THE FUTURE BE DELIVERED IN CONNECTION WITH THE FOREGOING, EACH PARTY HEREBY AGREES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, THAT ANY SUCH ACTION OR
PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY AND HEREBY EXPRESSLY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT SUCH PERSON MAY HAVE TO TRIAL BY JURY IN ANY SUCH ACTION, SUIT OR PROCEEDING. 
  
 (f) EACH GRANTOR HEREBY EXPRESSLY WAIVES ANY OBJECTION IT
MAY HAVE THAT ANY COURT TO WHOSE JURISDICTION IT HAS SUBMITTED PURSUANT TO THE TERMS HEREOF IS AN INCONVENIENT FORUM. 
  
 [Signature pages follow] 
  

 18 

 IN WITNESS WHEREOF, the Grantor has duly executed this Security Agreement on the day and year
first written above. 
  

					
	 GRANTOR:

	
	 QC Financial Services, Inc.,
 a Missouri corporation

		
	 By:
	 	 /s/ Douglas E. Nickerson

	 	 	 Douglas E. Nickerson

	 	 	 Chief Financial Officer

	
	 QC Properties, LLC,
 a Kansas limited liability company

		
	 By:
	 	 /s/ Don Early

	 	 	 Don Early

	 	 	 Manager

	
	 QC Financial Services of California, Inc.,
 a California corporation

		
	 By:
	 	 /s/ Douglas E. Nickerson

	 	 	 Douglas E. Nickerson

	 	 	 Chief Financial Officer

  

 19 

			
	QC Financial Services of Texas, Inc.,
	a Kansas corporation
		
	By:	 	 /s/ Douglas E. Nickerson

	 	 	 Douglas E. Nickerson

	 	 	 Chief Financial Officer

	
	QC Advance, Inc.,
	 a Missouri corporation

		
	By:	 	 /s/ Douglas E. Nickerson

	 	 	 Douglas E. Nickerson

	 	 	 Chief Financial Officer

	
	Cash Title Loans, Inc.,
	 a Missouri corporation

		
	By:	 	 /s/ Douglas E. Nickerson

	 	 	 Douglas E. Nickerson

	 	 	 Chief Financial Officer

  

 20Unlimited Continuing Guaranty Agreement

 Exhibit 10.4 
  
 UNLIMITED CONTINUING GUARANTY 
  
 THIS UNLIMITED CONTINUING GUARANTY (this “Guaranty Agreement”), dated as of January 19, 2006, is made
by QC Financial Services, Inc., a Missouri corporation, QC Properties, LLC, a Kansas limited liability company, QC Financial Services of California, Inc., a California corporation, QC Advance, Inc., a Missouri corporation, Cash Title Loans, Inc., a
Missouri corporation and QC Financial Services of Texas, Inc., a Kansas corporation (each individually a “Guarantor” and collectively, the “Guarantors”), for the benefit of U.S. BANK NATIONAL ASSOCIATION, a national
banking association organized and existing under the laws of the United States, as agent (in such capacity, the “Agent”) for each of the lenders (the “Banks”) now or hereafter party to the Credit Agreement (as defined below). All
capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Credit Agreement (as defined below). 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Banks have agreed to provide to QC Holdings, Inc., a Kansas corporation (“Borrower”) a revolving credit facility with a
sublimit for the issuance of letters of credit pursuant to the terms of that certain Credit Agreement dated as of January 19, 2006, among the Borrower, the Agent and the Banks (as from time to time amended, modified, supplemented or restated,
the “Credit Agreement”); and 
  
 WHEREAS, each
Guarantor is owned, directly or indirectly, by Borrower and will materially benefit from the Loans made and the Letters of Credit issued and to be issued, under the Credit Agreement to Borrower ; and 
  
 WHEREAS, each Guarantor is required to enter into this Guaranty
Agreement pursuant to the terms of the Credit Agreement; and 
  
 WHEREAS, a material part of the consideration given in connection with and as an inducement to the execution and delivery of the Credit Agreement by the Agent and the Banks was the obligation of the Borrower to cause each Guarantor
to enter into this Guaranty Agreement; and 
  
 WHEREAS, the
Banks are unwilling to extend and/or maintain the credit facilities provided under the Loan Documents unless each Guarantor enters into this Guaranty Agreement; 
  

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein, the parties hereto agree as follows: 
  
 1. Guaranty. Each Guarantor hereby unconditionally,
absolutely, continually and irrevocably guarantees, on a joint and several basis, to the Agent for the benefit of the Banks the payment and performance in full of the Borrower’s Liabilities (as defined below). For all purposes of this Guaranty
Agreement, “Borrower’s Liabilities” means: (a) the Borrower’s prompt payment in full, when due or declared due and at all such times, of all Obligations and all other amounts pursuant to the terms of the Credit Agreement,
the Notes, and all other Loan Documents heretofore, now or at any time or times hereafter owing, arising, due or payable from the Borrower to the Agent or any one or more of the Banks, including principal, interest, premiums and fees (including, but
not limited to, loan fees and attorneys’ fees and expenses); (b) the 

 
Borrower’s prompt, full and faithful performance, observance and discharge of each and every agreement, undertaking, covenant and provision to be
performed, observed or discharged by the Borrower under the Credit Agreement and all other Loan Documents; and (c) the Borrower’s prompt payment in full, when due or declared due and at all such times, of any obligations now or hereafter
arising under any interest rate or currency swap, rate cap or similar transaction (the “Hedge Agreements”). The Guarantors’ obligations to the Agent and the Banks under this Guaranty Agreement are hereinafter referred to as the
“Guarantors’ Obligations”. Notwithstanding the foregoing, the liability of each Guarantor with respect to the Guarantors’ Obligations shall be limited to an aggregate amount equal to the largest amount that would not render its
obligations hereunder subject to challenge under Section 548 of the United States Bankruptcy Code or any comparable provisions of any applicable state law. 
  

Each Guarantor agrees that it is directly and primarily liable on a joint and several basis (subject to the limitation in the immediately preceding
sentence) for the Borrower’s Liabilities. 
  
 The
Guarantors’ Obligations are secured by various security instruments referred to in the Credit Agreement, including without limitation the Subsidiary Security Agreement. 
  
 2. Payment. If the Borrower shall default in payment or performance of the Borrower’s Liabilities,
whether principal, interest, premium, fee (including, but not limited to, loan fees and attorneys’ fees and expenses), or otherwise, when and as the same shall become due, and after expiration of any applicable grace period, whether according
to the terms of the Credit Agreement, by acceleration, or otherwise, or upon the occurrence and during the continuance of any Event of Default under the Credit Agreement, then each Guarantor will, upon demand thereof by the Agent, fully pay to the
Agent, for the benefit of the Banks, subject to any restriction on the Guarantors’ Obligations set forth in Section 1 hereof, an amount equal to all the Borrower’s Liabilities then due and owing. 
  
 3. Absolute Rights and Obligations. This is a guaranty of
payment and not of collection. The Guarantors’ Obligations under this Guaranty Agreement shall be joint and several, absolute and unconditional irrespective of, and each Guarantor hereby expressly waives, to the extent permitted by law, any
defense to its obligations under this Guaranty Agreement and all security instruments to which it is a party by reason of: 
  
 (a) any lack of legality, validity or enforceability of the Credit Agreement, of any of the Notes, of any other Loan Document, or of any
other agreement or instrument creating, providing security for, or otherwise relating to any of the Guarantors’ Obligations, the Borrower’s Liabilities, or any other guaranty of any of the Borrower’s Liabilities (the Loan Documents
and all such other agreements and instruments being collectively referred to as the “Related Agreements”); 
  
 (b) any exercise of any right or power under any of the Related Agreements, any failure or omission to enforce any right conferred
thereby, or any waiver of any covenant or condition therein provided; 
  

 2 

 (c) any permitted acceleration of the maturity of the Borrower’s Liabilities, of the
Guarantors’ Obligations, or of any other obligations or liabilities of any Person under any of the Related Agreements; 
  
 (d) any release, exchange, non-perfection, lapse in perfection, disposal, deterioration in value, or impairment of any security for the
Borrower’s Liabilities, for any of the Guarantors’ Obligations, or for any other obligations or liabilities of any Person under any of the Related Agreements; 
  
 (e) any dissolution of any Borrower or any Guarantor or any other party to a Related Agreement, or the
combination or consolidation of Borrower or any Guarantor or any other party to a Related Agreement into or with another entity or any transfer or disposition of any assets of Borrower or any Guarantor or any other party to a Related Agreement;

  
 (f) any extension (including without
limitation extensions of time for payment), renewal, amendment, restructuring or restatement of, and any acceptance of late or partial payments under, the Credit Agreement, any of the Notes or any other Loan Document or any other Related Agreement,
in whole or in part; 
  
 (g) the existence,
addition, modification, termination, reduction or impairment of value, or release of any other guaranty (or security therefor) of the Borrower’s Liabilities; 
  
 (h) any waiver of, forbearance or indulgence under, or other consent to any change in or departure from any
term or provision contained in the Credit Agreement, any other Loan Document or any other Related Agreement, including without limitation any term pertaining to the payment or performance of the Borrower’s Liabilities, any of the
Guarantors’ Obligations, or any of the obligations or liabilities of any party to any other Related Agreement; and 
  
 (i) any other circumstance whatsoever (with or without notice to or knowledge of Guarantor) which may or might in any manner or to any
extent vary the risks of Guarantor, or might otherwise constitute a legal or equitable defense available to, or discharge of, a surety or a guarantor, including without limitation any right to require or claim that resort be had to the Borrower or
any other Guarantor or to any collateral in respect of the Borrower’s Liabilities or Guarantors’ Obligations. 
  
 It is the express purpose and intent of the parties hereto that this Guaranty Agreement and the Guarantors’ Obligations hereunder
shall be absolute and unconditional under any and all circumstances and shall not be discharged except by payment as herein provided. 
  
 4. Currency and Funds of Payment. All Guarantors’ Obligations will be paid in lawful currency of the United States of America and in
immediately available funds, regardless of any law, regulation or decree now or hereafter in effect that might in any manner affect the Borrower’s Liabilities, or the rights of any Secured Party with respect thereto as against any Borrower, or
cause or permit to be invoked any alteration in the time, amount or manner of payment by the Borrower of any or all of the Borrower’s Liabilities. 
  

 3 

 5. Events of Default. Without limiting the provisions of Section 2 hereof, in
the event that there shall occur and be continuing an Event of Default, then notwithstanding any collateral or other security or credit support for the Borrower’s Liabilities, at the Agent’s election and without notice thereof or demand
therefor, the Guarantors’ Obligations shall immediately be and become due and payable. 
  
 6. Subordination. Until this Guaranty Agreement is terminated in accordance with Section 23 hereof, each Guarantor hereby unconditionally subordinates all present and future debts,
liabilities or obligations now or hereafter owing to such Guarantor (i) of the Borrower, to the payment in full of the Borrower’s Liabilities, and (ii) of every other Guarantor (an “obligated guarantor”), to the payment in
full of the Guarantors’ Obligations of such obligated guarantor. All amounts due under such subordinated debts, liabilities, or obligations shall, upon the occurrence and during the continuance of an Event of Default, be collected and, upon
request by the Agent, paid over forthwith to the Agent for the benefit of the Banks on account of the Borrower’s Liabilities, the Guarantors’ Obligations, or such other obligations, as applicable, and, after such request and pending such
payment, shall be held by such Guarantor as agent and bailee of the Agent and the Banks separate and apart from all other funds, property and accounts, of such Guarantor. 
  
 7. Suits. In the event there shall occur and be continuing an Event of Default, each Guarantor from time to
time shall pay to the Agent for the benefit of the Banks, on demand, at the Agent’s place of business set forth in the Credit Agreement or such other address as the Agent shall give notice of to Guarantor, the Guarantors’ Obligations as
they become or are declared due, and in the event such payment is not made forthwith, the Agent may proceed to suit against each Guarantor. At the Agent’s election, one or more and successive or concurrent suits may be brought hereon by the
Agent against each Guarantor, whether or not suit has been commenced against the Borrower, any other Guarantor, or any other Person and whether or not the Agent has taken or failed to take any other action to collect all or any portion of the
Borrower’s Liabilities or have taken or failed to take any actions against any collateral securing payment or performance of all or any portion of the Borrower’s Liabilities, and irrespective of any event, occurrence, or condition
described in Section 3 hereof. 
  
 8. Set-Off
and Waiver. Each Guarantor waives any right to assert against any Secured Party as a defense, counterclaim, set-off, recoupment or cross claim, any defense (legal or equitable) or other claim which such Guarantor may now or at any time
hereafter have against Borrower or any Secured Party (with respect to Secured Party, this waiver shall not apply to a defense, counterclaim set-off, recoupment or cross claim arising solely out of Secured Party’s gross negligence or willful
misconduct) without waiving any additional defenses, set-offs, counterclaims or other claims otherwise available to such Guarantor. Each Guarantor agrees that each Secured Party shall have a lien for all the Guarantors’ Obligations upon all
deposits or deposit accounts, of any kind, or any interest in any deposits or deposit accounts, now or hereafter pledged, mortgaged, transferred or assigned to such Secured Party or otherwise in the possession or control of such Secured Party for
any purpose (other than solely for safekeeping) for the account or benefit of such Guarantor, including any balance of any deposit account or of 

  

 4 

 
any credit of such Guarantor with the Secured Party, whether now existing or hereafter established, and hereby authorizes each Secured Party from and after
the occurrence of an Event of Default at any time or times with or without prior notice to apply such balances or any part thereof to such of the Guarantors’ Obligations to the Agent and the Banks then due and in such amounts as provided for in
the Credit Agreement. For the purposes of this Section 8, all remittances and property shall be deemed to be in the possession of the Agent or a Bank as soon as the same may be put in transit to it by mail or carrier or by other bailee.

  
 9. Waiver of Notice; Subrogation. 
  
 (a) Each Guarantor hereby waives to the extent permitted by
law notice of the following events or occurrences: (i) acceptance of this Guaranty Agreement; (ii) the Banks’ heretofore, now or from time to time hereafter making Loans and issuing Letters of Credit and otherwise loaning monies or
extending credit to or for the benefit of Borrower, whether pursuant to the Credit Agreement or the Notes or any other Loan Document or Related Agreement or any amendments, modifications, or supplements thereto, or replacements or extensions
thereof, (iii) presentment, demand, default, non-payment, partial payment and protest, and (iv) any other event, condition, or occurrence described in Section 3 hereof. 
  
 (b) Each Guarantor hereby agrees that payment or performance
by such Guarantor of its Guarantors’ Obligations under this Guaranty Agreement may be enforced by the Agent on behalf of the Banks upon demand by the Agent to such Guarantor without the Agent being required, such Guarantor expressly waiving to
the extent permitted by law any right it may have to require the Agent, to (i) prosecute collection or seek to enforce or resort to any remedies against any Borrower or any other Guarantor of the Borrower’s Liabilities, or (ii) seek
to enforce or resort to any remedies with respect to any security interests, Liens or encumbrances granted to the Agent or any Bank or other party to a Related Agreement by Borrower, any other Guarantor or any other Person on account of the
Borrower’s Liabilities or any guaranty thereof, IT BEING EXPRESSLY UNDERSTOOD, ACKNOWLEDGED AND AGREED TO BY SUCH GUARANTOR THAT DEMAND UNDER THIS GUARANTY AGREEMENT MAY BE MADE BY THE AGENT, AND THE PROVISIONS HEREOF ENFORCED BY THE AGENT,
EFFECTIVE AS OF THE FIRST DATE ANY EVENT OF DEFAULT OCCURS AND IS CONTINUING UNDER THE CREDIT AGREEMENT. 
  
 (c) Each Guarantor further agrees with respect to this Guaranty Agreement that it shall have no right of subrogation, reimbursement,
contribution or indemnity, nor any right of recourse to security for the Borrower’s Liabilities unless and until 93 days immediately following the Termination Date shall have elapsed without the filing or commencement, by or against Borrower or
Guarantor, of any state or federal action, suit, petition or proceeding seeking any reorganization, liquidation or other relief or arrangement in respect of creditors of, or the appointment of a receiver, liquidator, trustee or conservator in
respect to Borrower or Guarantor or its assets. This waiver is expressly intended to prevent the existence of any claim in respect to such subrogation, reimbursement, contribution or indemnity by any Guarantor against the estate of 

  

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Borrower or Guarantor within the meaning of Section 101 of the Bankruptcy Code, in the event of a subsequent case involving any other Borrower or
Guarantor. If an amount shall be paid to Guarantor on account of such rights at any time prior to termination of this Guaranty Agreement in accordance with the provisions of Section 23 hereof, such amount shall be held in trust for the
benefit of the Agent and the Banks and shall forthwith be paid to the Agent, for the benefit of the Banks, to be credited and applied upon the Guarantors’ Obligations, whether matured or unmatured, in accordance with the terms of the Credit
Agreement or otherwise as the Agent may elect. The agreements in this subsection shall survive repayment of all of the Guarantors’ Obligations, the termination or expiration of this Guaranty Agreement in any manner, including but not limited to
termination in accordance with Section 23 hereof, and occurrence of the Termination Date. 
  
 10. Effectiveness; Enforceability. This Guaranty Agreement shall be effective as of the date first above written and shall continue in full
force and effect until termination in accordance with Section 23 hereof. Any claim or claims that the Agent or the Banks may at any time hereafter have against any Guarantor under this Guaranty Agreement may be asserted by the Agent for itself
or on behalf of the Banks by written notice directed to such Guarantor in accordance with Section 25 hereof. 
  
 11. Representations, Warranties and Covenants. Each Guarantor warrants and represents to the Agent, for the benefit of the Banks that it is
duly authorized to execute, deliver and perform this Guaranty Agreement; that this Guaranty Agreement has been duly executed and delivered on behalf of such Guarantor by its duly authorized representatives; that this Guaranty Agreement is legal,
valid, binding and enforceable against such Guarantor in accordance with its terms except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratoriurn or similar laws affecting the enforcement of creditors’ rights
generally and by general equitable principles; and that such Guarantor’s execution, delivery and performance of this Guaranty Agreement do not violate or constitute a breach of any of its organizational documents, any agreement or instrument to
which such Guarantor is a party, or any law, order, regulation, decree or award of any governmental authority or arbitral body to which it or its properties or operations is subject. 
  
 12. Expenses. Each Guarantor agrees to be jointly and severally liable for the payment of all reasonable fees
and expenses, including attorneys’ fees, incurred by any Secured Party in connection with the enforcement of this Guaranty Agreement, whether or not suit be brought. 
  
 13. Reinstatement. Each Guarantor agrees that this Guaranty Agreement shall continue to be effective or be
reinstated, as the case may be, at any time payment received by any Secured Party in respect of any Borrower’s Liabilities is rescinded or must be restored for any reason. 
  
 14. Attorney-in-Fact. To the extent permitted by law, each Guarantor hereby appoints the Agent, for the
benefit of the Banks, as Guarantor’s attorney-in-fact for the purposes of carrying out the provisions of this Guaranty Agreement and taking any action and executing any instrument which the Agent may deem necessary or advisable to accomplish
the purposes hereof, which appointment is coupled with an interest and is irrevocable; provided, that the Agent shall have and may exercise rights under this power of attorney only upon the occurrence and during the continuance of an Event of
Default. 
  

 6 

 15. Reliance. Each Guarantor represents and warrants to the Agent, for the benefit of the
Banks, that: (a) such Guarantor has adequate means to obtain on a continuing basis (i) from the Borrower, information concerning the Borrower and the Borrower’s financial condition and affairs and (ii) from other reliable
sources, such other information as it deems material in deciding to provide this Guaranty Agreement (“Other Information”‘), and has full and complete access to the Borrower’s books and records and to such Other Information;
(b) such Guarantor is not relying on any Secured Party or its or their employees, directors, agents or other representatives or affiliates, to provide any such information, now or in the future; (c) such Guarantor has been furnished with
and reviewed the terms of the Credit Agreement and such other Loan Documents as it has requested, is executing this Guaranty Agreement freely and deliberately, and understands the obligations and financial risk undertaken by providing this Guaranty
Agreement; (d) such Guarantor has relied solely on the Guarantor’s own independent investigation, appraisal and analysis of the Borrower, the Borrower’s financial condition and affairs, the “Other Information”, and such
other matters as it deems material in deciding to provide this Guaranty Agreement and is fully aware of the same; and (e) such Guarantor has not depended or relied on any Secured Party or its or their employees, directors, agents or other
representatives or affiliates, for any information whatsoever concerning the Borrower or the Borrower’s financial condition and affairs or any other matters material to Guarantor’s decision to provide this Guaranty Agreement, or for any
counseling, guidance, or special consideration or any promise therefor with respect to such decision. Each Guarantor agrees that no Secured Party has any duty or responsibility whatsoever, now or in the future, to provide to such Guarantor any
information concerning the Borrower or the Borrower’s financial condition and affairs, or any Other Information, other than as expressly provided herein, and that, if such Guarantor receives any such information from any Secured Party or its or
their employees, directors, agents or other representatives or affiliates, such Guarantor will independently verify the information and will not rely on any Secured Party or its or their employees, directors. agents or other representatives or
affiliates, with respect to such information. 
  
 16. Rules
of Interpretation. The rules of interpretation contained in Section 1.02 of the Credit Agreement shall be applicable to this Guaranty Agreement and are hereby incorporated by reference. All representations and warranties
contained herein shall survive the delivery of documents and any extension of credit referred to herein or guaranteed hereby. 
  
 17. Entire Agreement. This Guaranty Agreement, together with the Credit Agreement and other Loan Documents, constitutes and expresses the
entire understanding between the parties hereto with respect to the subject matter hereof, and supersedes all prior negotiations, agreements, understandings, inducements, commitments or conditions, express or implied, oral or written, except as
herein contained. The express terms hereof control and supersede any course of performance or usage of the trade inconsistent with any of the terms hereof. Except as provided in Section 23, neither this Guaranty Agreement nor any portion
or provision hereof may be changed, altered, modified, supplemented, discharged, canceled, terminated, or amended orally or in any manner other than as provided in the Credit Agreement. 
  

 7 

 18. Binding Agreement; Assignment. This Guaranty Agreement, and the terms, covenants and
conditions hereof, shall be binding upon and inure to the benefit of the parties hereto, and to their respective heirs, legal representatives, successors and assigns; provided, however, that no Guarantor shall not be permitted to
assign any of its rights, powers, duties or obligations under this Guaranty Agreement or any other interest herein without the prior written consent of the Agent. Without limiting the generality of the foregoing sentence of this
Section 18, any Bank may assign to one or more Persons, or grant to one or more Persons participations in or to, all or any part of its rights and obligations under the Credit Agreement (to the extent permitted by the Credit Agreement);
and to the extent of any such assignment or participation such other Person shall, to the fullest extent permitted by law, thereupon become vested with all the benefits in respect thereof granted to such Bank herein or otherwise, subject however, to
the provisions of the Credit Agreement, including Article IX thereof (concerning the Agent) and Section 11.07 thereof concerning assignments and participations. All references herein to the Agent shall include any successor thereof.

  
 19. Hedge Agreements. All obligations of the
Borrower under Hedge Agreements to which any Bank or its Affiliates are a party shall be deemed to be Borrower’s Liabilities, and each Bank or Affiliate of a Bank party to any such Hedge Agreement shall be deemed to be a Secured Party hereunder
with respect to such Borrower’s Liabilities; provided, however, that such obligations shall cease to be Borrower’s Liabilities at such time as such Person (or Affiliate of such Person) shall cease to be a “Bank”
under the Credit Agreement. 
  
 20. Severability.
The provisions of this Guaranty Agreement are independent of and separable from each other. If any provision hereof shall for any reason be held invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or
enforceability of any other provision hereof, but this Guaranty Agreement shall be construed as if such invalid or unenforceable provision had never been contained herein. 
  
 21. Counterparts. This Guaranty Agreement may be executed in any number of’ counterparts each of which
when so executed and delivered shall be deemed an original, and it shall not be necessary in making proof of this Guaranty Agreement to produce or account for more than one such counterpart executed by the Guarantor. 
  
 22. Indemnification. Without limitation of Section 11.05
of the Credit Agreement or any other indemnification provision in any Loan Document, each Guarantor agrees to indemnify and hold harmless each Secured Party and each of their affiliates and their respective officers, directors, employees, agents,
and advisors (each, an “Indemnified Party”) from and against any and all claims, damages, losses, liabilities, costs, and expenses (including, without limitation, reasonable attorneys’ fees) that may be incurred by or asserted or
awarded against any Indemnified Party, in each case arising out of or in connection with or by reason of (including, without limitation, in connection with any litigation or proceeding or preparation of defense in connection therewith) the Loan
Documents, any of the transactions contemplated herein or the actual or proposed use of the proceeds of the Loans or other extension of credit under the Loan Documents, except to the extent such claim, damage, loss, liability, cost, or expense
resulted from such Indemnified Party’s gross negligence or willful misconduct. In the case of litigation or other proceeding to which the indemnity in this Section 22 applies, such indemnity shall be effective whether or not such
litigation or proceeding is brought by such Guarantor or any other 

  

 8 

 
Borrower or any other Guarantor, any of their respective directors, shareholders or creditors, or an Indemnified Party or any other Person, or any
Indemnified Party is otherwise a party thereto and whether or not the transactions contemplated hereby are consummated. Each Guarantor agrees that no Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or
otherwise) to it, any of its subsidiaries or Affiliates, or any security holders or creditors thereof arising out of, related to or in connection with the transactions contemplated herein, except to the extent that such liability resulted from such
Indemnified Party’s gross negligence or willful misconduct. Each Guarantor agrees not to assert any claim against any Secured Party, any of its Affiliates, or any of their directors, officers, employees, attorneys, agents, or advisers, on any
theory of liability, for special, indirect, consequential, or punitive damages arising out of or otherwise relating to the Loan Documents, any of the transactions contemplated therein or the actual or proposed use of the proceeds of the Loans or
other extension of credit under the Loan Documents. The Guarantors and the Borrower, as a whole, will not be obligated under this Section 22 or any indemnification provision of any other Loan Document for (i) more than one firm of
attorneys (together with local counsel from other firms, if reasonably necessary) representing Agent and all Banks on any matter for which indemnification is sought, or (ii) any disputes or claims between the Agent and any one or more of the
Banks or between any Bank with one or more other Banks. The agreements in this Section 22 shall survive repayment of all of the Guarantors’ Obligations and the termination or expiration of this Guaranty Agreement in any manner, including
but not limited to termination upon occurrence of the Termination Date. 
  
 23. Termination. Subject to reinstatement pursuant to Section 13 hereof, this Guaranty Agreement and all of the Guarantors’ Obligations hereunder (excluding those obligations and liabilities that expressly
survive such termination) shall terminate on the Termination Date. 
  
 24. Remedies Cumulative; Late Payments. All remedies hereunder are cumulative and are not exclusive of any other rights and remedies of the Agent or any other Secured Party provided by law or under the Credit Agreement, the
other Loan Documents or other applicable agreements or instruments. The making of the Loans and other extensions of credit to the Borrower pursuant to the Credit Agreement shall be conclusively presumed to have been made or extended, respectively,
in reliance upon each Guarantor’s guaranty of the Borrower’s Liabilities pursuant to the terms hereof. Any amounts not paid when due under this Guaranty Agreement shall bear interest at the Default Rate. 
  
 25. Notices. Any notice required or permitted hereunder shall
be given, (a) with respect to each Guarantor, at the address of the Borrower indicated in Section 11.02 of the Credit Agreement and (b) with respect to the Agent or any other Secured Party, at the Agent’s address indicated
in Section 11.02 of the Credit Agreement. All such addresses may be modified, and all such notices shall be given and shall be effective, as provided in Section 11.02 of the Credit Agreement. 
  

 9 

	26.	Governing Law, Venue; Waiver of Jury Trial. 

  
 (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF KANSAS APPLICABLE TO CONTRACTS EXECUTED, AND
TO BE FULLY PERFORMED, IN SUCH STATE. 
  
 (b) EACH
GUARANTOR HEREBY EXPRESSLY AND IRREVOCABLY AGREES AND CONSENTS THAT ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREIN MAY BE INSTITUTED IN ANY STATE OR FEDERAL COURT SITTING IN THE
COUNTY OF JOHNSON, STATE OF KANSAS, UNITED STATES OF AMERICA AND, BY THE EXECUTION AND DELIVERY OF THIS AGREEMENT, GUARANTOR EXPRESSLY WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE IN, OR TO THE EXERCISE OF
JURISDICTION OVER IT AND ITS PROPERTY BY, ANY SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING, AND EACH GUARANTOR HEREBY IRREVOCABLY SUBMITS GENERALLY AND UNCONDITIONALLY TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUCH SUIT, ACTION OR
PROCEEDING. 
  
 (c) EACH GUARANTOR AGREES THAT
SERVICE OF PROCESS MAY BE MADE BY PERSONAL SERVICE OF A COPY OF THE SUMMONS AND COMPLAINT OR OTHER LEGAL PROCESS IN ANY SUCH SUIT, ACTION OR PROCEEDING, OR BY REGISTERED OR CERTIFIED MAIL (POSTAGE PREPAID) TO THE ADDRESS FOR NOTICES TO SUCH
GUARANTOR IN EFFECT PURSUANT TO SECTION 25 HEREOF, OR BY ANY OTHER METHOD OF SERVICE PROVIDED FOR UNDER THE APPLICABLE LAWS IN EFFECT IN THE STATE OF KANSAS. 
  
 (d) NOTHING CONTAINED IN SUBSECTIONS (b) or (c) HEREOF SHALL PRECLUDE THE AGENT FROM BRINGING ANY
SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENT IN THE COURTS OF ANY JURISDICTION WHERE ANY GUARANTOR OR ANY OF GUARANTORS’ PROPERTY OR ASSETS MAY BE FOUND OR LOCATED. TO THE EXTENT PERMITTED BY THE APPLICABLE LAWS OF
ANY SUCH JURISDICTION, EACH GUARANTOR HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT AND EXPRESSLY WAIVES, IN RESPECT OF ANY SUCH SUIT, ACTION OR PROCEEDING, OBJECTION TO THE EXERCISE OF JURISDICTION OVER IT AND ITS PROPERTY BY ANY
SUCH OTHER COURT OR COURTS WHICH NOW OR HEREAFTER MAY BE AVAILABLE UNDER APPLICABLE LAW. 
  

 10 

 (e) IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS OR REMEDIES UNDER OR RELATED TO
THIS AGREEMENT OR ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR THAT MAY IN THE FUTURE BE DELIVERED IN CONNECTION THEREWITH, EACH GUARANTOR AND THE AGENT FOR ITSELF AND ON BEHALF OF THE BANKS HEREBY AGREE, TO THE EXTENT PERMITTED BY
APPLICABLE LAW, THAT ANY SUCH ACTION, SUIT OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY AND HEREBY IRREVOCABLY WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT ANY SUCH PERSON MAY HAVE TO TRIAL BY JURY IN ANY SUCH
ACTION, SUIT OR PROCEEDING. 
  
 (f) EACH GUARANTOR
HEREBY EXPRESSLY WAIVES ANY OBJECTION IT MAY HAVE THAT ANY COURT TO WHOSE JURISDICTION IT HAS SUBMITTED PURSUANT TO THE TERMS HEREOF IS AN INCONVENIENT FORUM. 
  
 [Signature page follows.] 
  

 11 

 IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Guaranty Agreement as of the
day and year first written above. 
  

			
	QC Financial Services, Inc.,
	a Missouri corporation
		
	By:	 	 /s/ Douglas E. Nickerson

	 	 	Douglas E. Nickerson
	 	 	Chief Financial Officer
	
	 QC Properties, LLC,
 a Kansas limited
liability company

		
	By:	 	 /s/ Don Early

	 	 	Don Early
	 	 	Manager
	
	 QC Financial Services of California, Inc.,
 a
California corporation

		
	By:	 	 /s/ Douglas E. Nickerson

	 	 	Douglas E. Nickerson
	 	 	Chief Financial Officer

  

 12 

			
	QC Financial Services of Texas, Inc.,
	a Kansas corporation
		
	By:	 	 /s/ Douglas E. Nickerson

	 	 	Douglas E. Nickerson
	 	 	Chief Financial Officer
	
	QC Advance, Inc.,
	a Missouri corporation
		
	By:	 	 /s/ Douglas E. Nickerson

	 	 	Douglas E. Nickerson
	 	 	Chief Financial Officer
	
	Cash Title Loans, Inc.,
	a Missouri corporation
		
	By:	 	 /s/ Douglas E. Nickerson

	 	 	Douglas E. Nickerson
	 	 	Chief Financial Officer

  

 13

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