Document:

Employment Agreement

 EXHIBIT 10.1 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into
this 3rd day of January, 2007 by and between CompuCredit Corporation, a Georgia corporation (“CompuCredit”), and Krishnakumar Srinivasan, an individual resident of the State of Georgia (“Employee”). 
 W I T N E S S E T H: 
 WHEREAS,
in consideration of, among other things, CompuCredit’s appointing Employee to the position of President (Credit Cards), Employee has agreed to devote his full working time to the business efforts of CompuCredit; and 
 WHEREAS, the parties hereto desire to amend and restate all prior employment agreements or arrangements, in their entirety to set forth the terms and
conditions of Employee’s continued employment with CompuCredit; 
 NOW, THEREFORE, for and in consideration of the Employee’s
employment with CompuCredit and the premises and the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, CompuCredit and Employee hereby agree as
follows: 
 1. Relationship Re-established. Upon the terms and subject to the conditions of this Agreement, CompuCredit hereby employs
Employee to serve as the President (Credit Cards), and, as such, Employee shall manage the Credit Card Line of Business and be the primary executive within CompuCredit responsible for the profitability and management of the Credit Card Line of
Business and shall have such other executive level powers and duties as shall be otherwise conferred on him by CompuCredit’s Board of Directors or Chief Executive Officer consistent with those generally associated with that position
(collectively, the “Services”). For the purpose of this Agreement, “Credit Card Line of Business” shall mean CompuCredit’s commercial enterprise of extending unsecured revolving loans to customers. Employee shall perform the
Services at the direction of CompuCredit’s Chief Executive Officer. Employee hereby agrees to devote 100% of his business time, attention, energy and skill exclusively to performing his obligations and duties hereunder and to engage in no
business activities other than the performance of his obligations and duties hereunder, except for those specific activities as the Chief Executive Officer or Board of Directors of CompuCredit shall approve in advance in writing; provided, however,
that nothing herein contained shall restrict or prevent Employee from personally and for his own account owning and dealing in stocks, bonds, securities, real estate, commodities, or other investment properties for his own benefit or the benefit of
his family. Further, nothing herein contained shall restrict or prevent Employee from serving on the Board of Directors of a non-profit entity or any entity that the Chief Executive Officer approves of in writing. Employee shall perform his
obligations and duties hereunder diligently, faithfully and to the best of his abilities and, in doing so, shall comply with applicable CompuCredit policies and procedures. If there is any conflict between such policies and procedures and this
Agreement, this Agreement shall control. 

 2. Term; Termination. 
 2.1 Term of Employment. The term of Employee’s employment under this Agreement shall commence on January 1, 2007 and shall continue for
an initial term (the “Initial Term”) of five years from that date, unless sooner terminated in accordance with Section 2.2. Upon expiration of the Initial Term, Employee’s term of employment shall be automatically extended month
by month upon the same terms and conditions contained herein until terminated in accordance with Section 2.2. The Initial Term and any additional period of time Employee is employed by CompuCredit thereafter shall be collectively referred to as
the “Term.” 
 2.2 Termination of Employment. 
 (a) This Agreement shall automatically and immediately terminate upon the death of Employee. 
 (b) Either
party may terminate this Agreement upon the Complete Disability of Employee. “Complete Disability”, as used herein, shall mean the inability of Employee by reason of any physical or mental impairment to perform fully and effectively, as
determined in the reasonable judgment of a competent physician selected in good faith by CompuCredit, the Services on a full time basis for an aggregate of 90 days in any period of 180 consecutive days. 
 (c) In addition to any other rights or remedies available to CompuCredit, CompuCredit may, in its sole discretion, terminate Employee’s employment
for Cause effective immediately upon delivery of written notice to Employee. In this Agreement, “Cause” means the reasonable, good faith determination of a majority of the members of CompuCredit’s Board of Directors that: 

(i)(A) Employee has committed an act constituting fraud, deceit or intentional material misrepresentation with respect to CompuCredit
or any client, customer or supplier of CompuCredit; (B) Employee has embezzled funds or assets from CompuCredit or any client or customer of CompuCredit; (C) Employee has engaged in willful misconduct or gross negligence in the performance
of the Services; (D) Employee has failed to comply in a material way with any of the terms of Section 1 or Section 9 hereof; 
 (ii) Employee has breached or defaulted in the performance of any other material provision of this Agreement and has not cured such breach or default to CompuCredit’s reasonable satisfaction within thirty
(30) days after receiving notice thereof; or 
 (iii) Employee’s conduct is materially detrimental to the reputation
of CompuCredit which Employee has not cured (if such conduct is curable in Employer’s reasonable opinion) to CompuCredit’s reasonable satisfaction within ten (10) days after receiving notice thereof. 
  

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 (d) In addition to any other rights or remedies available to Employee, Employee may, in his sole
discretion, terminate Employee’s employment for Good Reason effective immediately upon delivery of written notice to CompuCredit. In this Agreement, “Good Reason” shall mean the occurrence of any one of the following events:

 (i) Employee’s status or role within CompuCredit is demoted in any of the following ways: 
 (A) a material diminution in the scope and nature of Employee’s duties and responsibilities or the assignment of duties and
responsibilities inconsistent with those generally associated with the position of primary executive of the Credit Card Line of Business; 
 (B) Employee no longer reports directly to the Chief Executive Officer or President of CompuCredit; or 
 (C) a reduction by CompuCredit of Employee’s base annual salary, incentive compensation opportunity or a material reduction of Employee’s benefits (taken as a whole) as in effect immediately prior to such
reduction except as part of a general reduction of compensation of the senior management of CompuCredit based upon CompuCredit’s financial performance. 
 (ii) the failure of a successor of CompuCredit to assume in writing this Agreement contemporaneously to becoming a successor of
CompuCredit; 
 (iii) CompuCredit has materially breached or defaulted in the performance of any material provision of this
Agreement and has not cured such breach or default to Employee’s reasonable satisfaction within thirty (30) days after receiving notice thereof; or 
 (iv) CompuCredit or its successor transfers Employee to a location more than 50 miles outside the Atlanta, Georgia city limits.

 (e) The date on which Employee’s employment expires or terminates for any reason is referred to herein as the “Termination
Date.” 
 3. Compensation. 
 (a) During the Term, CompuCredit shall pay Employee as compensation for the Services an annual salary of $700,000. Such compensation shall be payable in substantially equal bi-weekly installments or in such other installments or at such
other intervals as may be the policy of CompuCredit from time to time, and shall be subject to such deductions and withholdings as are required by law or policies of CompuCredit in effect from time to time. 
  

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 (b) Executive’s target bonus for each fiscal year during the Initial Term will be as follows:

  

				
	 2007
	  	$	1,850,000
	 2008
	  	$	2,150,000
	 2009
	  	$	2,400,000
	 2010
	  	$	2,800,000
	 2011
	  	$	3,200,000

 Prior to March 15 of each fiscal year of CompuCredit during the Initial Term, CompuCredit and
Executive will agree upon performance goals for Executive’s target bonus for such fiscal year, although all performance goals shall be subject to approval by the Committee (as defined in CompuCredit’s 2004 Restricted Stock Plan or the
successor thereto (the “Stock Plan”)). Based upon the achievement of the performance goals, Executive may earn all, part or none of the target bonus. Subject to Section 11, any bonus that is earned shall be paid in shares of Restricted
Stock (as defined in the Stock Plan). The number of shares of Restricted Stock paid shall be determined as soon as practicable following the filing of CompuCredit’s Form 10-K with the Securities and Exchange Commission for the relevant fiscal
year and shall be based upon the Fair Market Value (as defined in the Stock Plan) of CompuCredit’s common stock at the end of the fiscal year. Shares of Restricted Stock shall be deemed “awarded” as of the first day of the year
following a fiscal year with respect to which they are earned even though the precise number may not be determinable at that time. Subject to the provisions of Sections 3(c) to (f) and 11, any Restricted Stock that is awarded shall vest on March 15,
2012, provided that Executive has from the date hereof until March 15, 2012 remained in the full-time employment of CompuCredit. In the event that Executive has not remained in the full-time employment of CompuCredit until March 15, 2012, the
Restricted Stock (or any substitute therefor) shall not vest and shall be forfeited, except as otherwise provided herein. Each grant of Restricted Stock shall be evidenced by a written agreement in CompuCredit’s customary form, modified as
necessary to reflect the provisions of this Agreement. The actual bonus award will be determined as the product of target bonus specified above multiplied by the ratio of CompuCredit’s credit card line of business actual financial performance
divided by the agreed upon performance goal (the “Ratio”). For each fiscal year, the Ratio must be a minimum of 70% in order for the Employee to receive a bonus for such fiscal year. The Ratio shall be capped at 100%. 
 (c) Notwithstanding anything to the contrary herein, if Employee’s employment is terminated by CompuCredit for Cause or by Employee without Good
Reason (except in the case of death or Complete Disability of Employee), CompuCredit shall be released of its obligation to pay further compensation or benefits to Employee as set forth in this Agreement and any Restricted Stock or restricted stock
units that have not vested shall be forfeited and not vest; provided, however, that Employee shall be entitled to receive any salary already earned under Section 3(a) above. 
 (d) Notwithstanding anything to the contrary herein, if Employee’s employment terminates as a result of the Complete Disability of Employee,
CompuCredit shall be released of its obligation to pay further compensation or benefits to Employee as set forth in 

  

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this Agreement and any Restricted Stock or restricted stock units that have not yet been awarded shall be forfeited and not vest; provided,
however, that Employee shall be deemed to be One Hundred Percent (100%) vested in all Restricted Stock or restricted stock units that have been awarded prior to the commencement of the Complete Disability of Employee, provided,
further, that Employee shall be entitled to receive his salary under Section 3(a) above for a period of three (3) months following the determination of Complete Disability of the Employee. 
 (e) Notwithstanding anything to the contrary herein, if Employee’s employment terminates as a result of the death of Employee, CompuCredit shall be
released of its obligation to pay further compensation or benefits to Employee as set forth in this Agreement and any Restricted Stock or restricted stock units that have not yet been awarded shall be forfeited and not vest; provided,
however, that Employee shall be deemed to be One Hundred Percent (100%) vested in all Restricted Stock and restricted stock units that have been awarded prior to the death of Employee, provided, further, that
Employee’s estate shall be entitled to receive any salary already earned under Section 3(a) above. 
 (f) Notwithstanding anything
to the contrary herein, if CompuCredit terminates Employee’s employment for any reason other than for Cause or if Employee terminates this Agreement or resigns for Good Reason, Employee shall be entitled to receive (i) his then current
base salary for the lesser of the remainder of the Initial Term or, twenty-four (24) months from the Termination Date, and (ii) Restricted Stock / restricted stock units prorated for the period served for that calendar year in which such
termination occurs. The Employee shall not be obligated in any way to mitigate CompuCredit’s obligations to him under this Section and any amounts earned by Employee subsequent to his termination of employment shall not serve as an offset to
the severance payments due him by CompuCredit under this Section. Further, Employee shall be deemed to be One Hundred Percent (100%) vested in all Restricted Stock and restricted stock units previously awarded to Executive; provided,
however, that any Restricted Stock or restricted stock units that have not yet been granted as of the Termination Date shall be forfeited and not vest, except as provided in the first sentence of this Section 3(f). Payments under this
Section are in addition to and not in lieu of any benefits under the other benefit programs of CompuCredit. Without limiting the foregoing, to the extent permitted by law, CompuCredit shall continue the medical, disability and life insurance
benefits which Executive was receiving at the time of termination for a period of twenty-four (24) months after the Termination Date or, if earlier, until Employee has commenced employment elsewhere and becomes eligible for participation in the
medical, disability and life insurance programs, if any, of his successor employer. Coverage under CompuCredit’s medical, disability and life insurance programs shall cease with respect to each such program as Employee becomes eligible for the
medical, disability and life insurance programs, if any, of his successor employer. CompuCredit shall thereafter have no other obligation or liability to Employee under this Agreement. 
 4. Vacation. Employee shall be entitled to such number of weeks of paid vacation in each calendar year of the Term as is provided in, and in
accordance with, CompuCredit’s policies in effect from time to time for management employees, but no less than 5 weeks per calendar year. 
  

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 5. Benefits. Employee and, as applicable, Employee’s family, shall also have the right to
participate in any employee benefit plans or other fringe benefits adopted by CompuCredit for its officers and/or other key management employees or as a part of CompuCredit’s regular compensation structure for its employees, including plans (to
the extent offered) providing group hospitalization, medical, dental, accidental death and disability and long-term disability income replacement insurance benefits and any retirement income, capital accumulation, deferred compensation and incentive
compensation plans, but only if and to the extent provided from time to time in such executive benefits plans and for so long as CompuCredit provides or offers such benefit plans. Notwithstanding the foregoing, the Employee acknowledges that the
Restricted Stock that may be granted pursuant to Section 3 hereof, if actually granted, is in lieu of any options or other equity-based compensation for which Employee may otherwise be eligible between January 1, 2007 and December 31,
2011. 
 6. Reimbursement for Expenses. CompuCredit shall reimburse Employee for reasonable out-of-pocket expenses incurred by
Employee in connection with the performance of the Services hereunder for travel, entertainment and other miscellaneous expenses to the extent such expenses are consistent with CompuCredit’s reimbursement policy as the same shall be in effect
from time to time. Reimbursement shall be made only against an itemized list of such expenses submitted to CompuCredit by Employee within thirty (30) days after being incurred, and, to the extent requested by CompuCredit, receipts and invoices
evidencing such expenses. 
 7. Confidentiality. 
 (a) Proprietary Information. Employee acknowledges that as an employee of CompuCredit, he may from time to time have access to and be provided with trade secrets (as defined under applicable law), and other
confidential, secret and proprietary information including without limitation, financial statements or information, technical or nontechnical data, formulae, compilations, programs, methods, data, financial plans, models, product plans, marketing or
sales strategies, portfolio information, or lists of actual or potential borrowers, loan program participants or other customers not generally available to the public concerning any aspect of the products, services or businesses of CompuCredit, its
affiliates, or its and their officers, directors, employees, advisers, agents or other personnel (collectively, “Proprietary Information”). Employee agrees that he will not, directly or indirectly, disclose, publish, disseminate or use any
Proprietary Information except in connection with the performance of the Services. If disclosure of any Proprietary Information is required by law, a court or agency of the government, then Employee may make such disclosure after providing
CompuCredit with reasonable notice, to the extent that providing such notice to CompuCredit is legally permissible, so that CompuCredit may seek protective relief. 
 (b) Notwithstanding the provisions of Section 7(a) above, the following shall not be considered to be Proprietary Information: (i) any information that was in the public domain through no fault or act of
Employee prior to the disclosure thereof to Employee; (ii) any information that came to Employee during any employment prior to that with CompuCredit; (iii) any information that comes into the public domain through no fault or act of
Employee; and (iv) any confidential business information that is not a trade secret on and after the three (3) year anniversary of the Termination Date; provided, however, that the limited duration of the 

  

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confidentiality obligation with regard to Proprietary Information not constituting a trade secret shall not operate or be construed as affording Employee any
right or license thereafter to use Proprietary Information, or as a waiver by CompuCredit of the rights and benefits otherwise available to CompuCredit under the laws governing the protection and enforceability of patents, trade secrets and other
intellectual property. 
 (c) Return of Materials. On or before the Termination Date, or when otherwise requested by CompuCredit,
Employee will deliver promptly to CompuCredit all Proprietary Information and all other files, customer lists, management reports, drawings, memoranda, forms, financial data and reports and other materials or documents and equipment provided to, or
obtained or created by Employee in connection with the Services (including all copies of the foregoing, and including all notes, records and other materials of or relating to CompuCredit or its customers) in his possession or control and shall
destroy all other Proprietary Information in his possession. 
 8. Transfer and Assignment to CompuCredit. 
 (a) To the greatest extent possible, any Work Product will be “work made for hire” (as defined in the Copyright Act, 17 U.S.C.A.
§ 101 et seq., as amended) and owned exclusively by CompuCredit. In this Agreement, “Work Product” means work product, property, data, documentation, “know-how,” concepts, plans, inventions, improvements,
techniques, processes or information of any kind, prepared, conceived, discovered, developed or created by Employee while employed by CompuCredit. Employee hereby unconditionally and irrevocably transfers and assigns to CompuCredit all right, title
and interest Employee has or will have, by operation of law or otherwise, in or to any Work Product, including, without limitation, all patents, copyrights, trademarks, service marks, trade secrets and other intellectual property rights. Employee
agrees to execute and deliver to CompuCredit any transfers or other instruments which CompuCredit may deem necessary or appropriate to vest complete title and ownership of any Work Product, and all rights therein, exclusively in CompuCredit.

 (b) Power of Attorney. Employee hereby irrevocably constitutes and appoints CompuCredit as his agent and attorney-in-fact, with
full power of substitution, in the name, place and stead of Employee, to execute and deliver any and all assignments or other instruments described in Section 8(a) above that Employee fails or refuses promptly to execute and deliver. The
foregoing power and agency are coupled with an interest and are irrevocable. 
 9. Covenant Against Competition. 
 (a) Employee acknowledges that the Proprietary Information that he has acquired and will acquire, prior to and during the Term, includes and will include
information that could be used by Employee on behalf of a Competitor (as hereinafter defined), its affiliates or others to the substantial detriment of CompuCredit. Moreover, the parties recognize that Employee during the course of his employment
with CompuCredit will develop important relationships with customers, suppliers and others having valuable business relationships with CompuCredit. In view of the foregoing, Employee acknowledges and agrees that the restrictive 

  

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covenants contained in this Agreement are reasonably necessary to protect CompuCredit’s legitimate business interests and goodwill. 
 (b) Definitions. 
 (i)
“Competitive Position”- (A) the direct or indirect equity ownership (excluding ownership of less than 2% of the equity of an entity listed on a national U.S. exchange) or control of all or any portion of a
“Competitor” (as hereinafter defined), or (B) any employment, consulting, partnership, advisory, directorship, agency, promotional or independent contractor arrangement between Employee and any Competitor. 
 (ii) “Competitor”- Any entity that provides services substantially similar to the Company Services and the revenues and
assets from which represent more than 20% of the revenues or assets of such entity. 
 (iii) “Customers”- All
persons within the Territory during the one-year period prior to the Termination Date (A) to whom Employee offered or sold any of CompuCredit’s products or services (including, without limitation, any opportunity to participate in any loan
program established by CompuCredit), (B) to whom were offered or sold any of CompuCredit’s products or services or about whom Employee had Proprietary Information, (C) who were approached by CompuCredit with regard to a product, or
(D) who were identified as potential customers by CompuCredit’s models or processes. 
 (iv) “Company
Services”- (A) purchasing, holding, and selling credit card or auto, micro or home equity loans (purchased, held or sold by CompuCredit), or portfolios thereof, or both, (B) providing credit card or auto, micro or home equity loan
servicing services or (C) engaging in the business of making credit card or auto, micro or home equity loans to consumers. 
 (v) “Territory”- The United States, which is the territory within which customers and accounts of CompuCredit will be located and where Employee will provide Services during the term of his employment under this Agreement.

 (c) Covenants of Employee. In consideration of Employee’s employment by CompuCredit upon the terms and conditions of this
Agreement, and based on and subject to the provisions set forth in Section 9(a) above, Employee agrees that, during the Term and for a period of one (1) year from and after the termination of Employee’s employment hereunder by
CompuCredit for Cause or by the Employee without Good Reason, Employee will not, without the prior written consent of CompuCredit, directly or indirectly for or on behalf of any person other than CompuCredit, as principal, agent or otherwise:

 (i) take any action in furtherance of a Competitive Position; or 
  

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 (ii) solicit Customers for the purpose of providing services competitive with any of the
Company Services; or 
 (iii) solicit or induce (or attempt to do so) to leave employment with CompuCredit anyone who is or
was, during the last year of Employee’s relationship with CompuCredit, an employee of CompuCredit or an affiliated entity. 
 (d)
Employee hereby represents and warrants to CompuCredit that he is not now a party to any agreement, court order, decree or other restriction that restricts him from using or disclosing to any party any information deemed to be proprietary or
confidential or deemed to be a trade secret, of which in any way restricts Employee from engaging in or rendering any of the Services. 
 10.
Restrictions Upon Sale of Shares. In further consideration of the terms of employment granted herein by CompuCredit to Employee, Employee hereby agrees that in selling any CompuCredit shares of common stock during the Term, he will advise
CompuCredit in advance of such sales and will use reasonable efforts to effect such sales so as to minimize any adverse consequences to transactions proposed by CompuCredit that involve its common stock. 
 11. Certain Covenants If CompuCredit Goes Private or There is a Change of Control or Diminution of Book Value. 
 (a) If at any time prior to March 15, 2012, CompuCredit becomes a “private” company (which, for purposes hereof, means a company whose
shares of common stock are no longer traded on a national securities exchange and /or are owned beneficially by not more than 100 shareholders) while still being controlled by a “permitted owner” as defined below (any such occurrence, a
“Going-private Transaction”), then (i) one-half of the shares of Restricted Stock that had been awarded prior to the Going-private Transaction shall immediately vest and shall correspondingly be sold as part of the Going-private
Transaction, and (ii) the remaining one-half of the shares of Restricted Stock that had been awarded prior to the Going-private Transaction shall be converted into “restricted stock units” on the basis of one unit per share of
Restricted Stock. Provided that Executive has from the date hereof until March 15, 2012 remained in full-time employment of CompuCredit, these restricted stock units shall vest on March 15, 2012, at which time CompuCredit immediately shall
redeem the restricted stock units based upon their fair market value as of the end of fiscal year 2011. In addition, notwithstanding the provisions of Section 3(b), any bonuses that are earned subsequent to a Going-private Transaction shall be
paid in restricted stock units rather than Restricted Stock. 
 (b) If at any time during the Initial Term a “change in control” of
CompuCredit occurs, any Restricted Stock and restricted stock units that prior thereto had been awarded shall immediately vest and be redeemed by CompuCredit immediately and any future bonuses provided for in Section 3(b) shall be paid in cash
rather than in shares of Restricted Stock. For these purposes, a “change in control” shall mean the cumulative sale of more than 60% of the credit card portfolio (measured by number of accounts or dollar receivables) to any entity, for any
purpose other than for securitization purposes, in any consecutive 12 month period 

  

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or the acquisition of 50% or more of the “beneficial ownership” of the voting equity securities of CompuCredit (on a fully diluted as-converted
basis) by any person or “group” (with the terms “beneficial ownership” and “group” having the meanings given to them for purposes of Schedule 13D under the Securities Exchange Act of 1934, as amended) other than
(i) Frank J. Hanna, III, David G. Hanna, their spouses, their descendants and the spouses of their descendants, (ii) trusts and other entities established generally for the benefit of Frank J. Hanna, III, David G. Hanna, their spouses,
their descendants and the spouses of their descendants, and/or (iii) charitable trusts, foundations or similar entities established by any of the foregoing. 
 (c) For the purposes of Section 11(a) and 11(b), the fair market value of the restricted stock units shall be computed by applying price-to-book ratio implicit in the Going-private Transaction to the book value
of CompuCredit for the fiscal year for which the bonus is being computed and, in the case of redemption in 2012, for fiscal year 2011, but in no event shall the fair market value on redemption be less than the amount of the bonuses that generated
the restricted stock units. 
 12. Indemnification. In the event that the Employee is or becomes a party to or witness or other
participant in, or is threatened to be made a party to or witness or other participant in, a “claim” by reason of (or arising in part out of) an “indemnifiable event,” CompuCredit shall indemnify Employee to the full extent
authorized or permitted by law as soon as practicable after written demand is presented to CompuCredit, against any and all “expenses,” judgments, fines, penalties, and amounts paid in settlement (including interest, assessments and other
charges paid or payable in connection with or in respect of such expenses, judgments, fines or settlement) of such claim, provided that CompuCredit shall be obligated to indemnify only for settlements that it has approved in advance, which approval
shall not be unreasonably withheld. For these purposes, (i) a “claim” shall include any threatened, pending or completed action, suit or proceeding, or any inquiry or investigation, whether instituted by or in the right of CompuCredit
or any other party, which Employee believes in good faith might lead to the institution of any such action, suit or proceeding, whether civil, administrative, investigative or other, arising in connection with an indemnifiable event,
(ii) “expenses” includes attorneys’ fees and all other costs, expenses and obligations paid or incurred in connection with investigating, defending, being a witness in or participating in (including an appeal), or preparing to
defend, be a witness in or participate in any claim relating to an indemnifiable event, provided that any attorney representing Employee shall cooperate fully with CompuCredit and its attorneys in order to minimize the duplication of expenses; and
(iii) an “indemnifiable event” means any event or occurrence related to the fact the Employee is or was an executive officer of CompuCredit, or is or was serving at the request of CompuCredit as a director, officer, or trustee of
another corporation, trust or other enterprise, or by anything done or not done by Employee in such capacity. 
 13. Interpretation;
Severability. All rights and restrictions contained in this Agreement may be exercised and shall be applicable and binding only to the extent that they do not violate any applicable laws and are intended to be limited to the extent necessary so
that they will not render this Agreement illegal, invalid or unenforceable. It is understood and agreed that the provisions hereof are severable; if such provisions shall be deemed invalid or unenforceable as to any period of time, territory, or
business activity, such provisions shall be deemed limited 

  

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to the extent necessary to render it valid and enforceable, and the unenforceability of any provisions hereof shall not in any event cause any other
provision hereof to be unenforceable. No provision of this Agreement shall be construed against or interpreted to the disadvantage of any party hereto by any court or other governmental or judicial authority by reason of such party having or being
deemed to have structured or dictated such provision. 
 14. Relief. In the event of any threatened or actual breach of the provisions
of this Agreement by either party, the other party shall be entitled to injunctive relief in addition to any other remedies it may have at law or in equity. 
 15. Nonwaiver. Failure of either party to insist, in one or more instances, on performance by the other in strict accordance with the terms and conditions of this Agreement shall not be deemed a waiver or
relinquishment of any right granted hereunder or of the future performance of any such term or condition or of any other term or condition of this Agreement, unless such waiver is contained in a writing signed by or on behalf of both parties.

 16. Notices. Any notice or other communication required or permitted hereunder shall be deemed sufficiently given if delivered by
hand or sent by registered or certified mail, return receipt requested, postage and fees prepaid, addressed to the party to be notified as follows: 
  

			
	 (a) If to CompuCredit:
	 	CompuCredit Corporation
		 	245 Perimeter Center Parkway, Suite 600
		 	Atlanta, GA 30346
		 	Attn: David G. Hanna
		
	 (b) If to Employee:
	 	Krishnakumar Srinivasan
		 	c/o CompuCredit Corporation
		 	 245 Perimeter Center Parkway, Suite 600
 Atlanta, GA
30346

 or in each case to such other address as either party may from time to time designate in writing to the other. Such
notice or communication shall be deemed to have been given as of the date so delivered or five (5) days after the date so mailed. 
 17.
Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Georgia. 
 18. Entire Agreement; Amendment. This Agreement contains the sole and entire agreement between the parties hereto with respect to CompuCredit’s employment of Employee and supersedes all prior discussions and agreements between
the parties relating to such employment, and any such prior agreements shall, from and after the date hereof, be null and void. Employee is a sophisticated business person and has received such documents and other information as he has deemed
necessary to make his own independent judgment as to the merits of this Agreement and the remuneration that he will receive as a result hereof; further, it is hereby agreed by Employee that neither CompuCredit nor any affiliated entities have made
any representation to Employee other than those specifically set forth in this Agreement. This 

  

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Agreement shall not be modified or amended except by an instrument in writing signed by or on behalf of the parties hereto. Furthermore, if any portion of
this Agreement conflicts with any future agreement signed between CompuCredit and Employee, this Agreement shall control unless such future agreement clearly specifies that it is intended to supercede all or a specific provision of this Agreement.

 19. Parties Benefited. This Agreement shall inure to the benefit of, and be binding upon Employee, CompuCredit, and their
respective heirs, legal representatives, successors and assigns; provided that, as to Employee, this is a personal service contract and Employee may not assign this Agreement or any part hereof. 
 20. Tax Consequences. CompuCredit shall have no obligation to Employee with respect to any tax obligation Employee incurs as a result of or
attributable to this Agreement, including all supplemental agreements and employee benefit plans, if any, in which Employee may hereafter participate, or arising from any payments made or to be made hereunder or thereunder. 
 21. Counterparts. This Agreement may be executed in counterparts, each of which shall for all purposes be deemed an original, and all of such
counterparts shall together constitute one and the same agreement. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

  

			
		 	COMPUCREDIT CORPORATION
		
	 By:
	 	 /s/ David G. Hanna

		 	David G. Hanna, Chief Executive Officer
		
		 	 /s/ Krishnakumar Srinivasan

		 	Krishnakumar Srinivasan

  

 13Asset Sale and License Agreement

 Exhibit 10.1 
 ASSET SALE & LICENSE AGREEMENT 
 This Asset Sale & License Agreement (the
“Agreement”) is effective as of January 4, 2007, (“Effective Date”) by and between ST. BERNARD SOFTWARE, INC., a Delaware corporation, located at 15015 Avenue of Science, San Diego, California 92128 (“SBS”)
and SHAVLIK TECHNOLOGIES, LLC. (“Shavlik”), a Delaware LLC located at 2665 Long Lake Road, Suite 400, Roseville, MN 55113 (each a “Party” and collectively the “Parties”). 
 RECITALS 
 A. SBS and Shavlik are
developers of software application update and patch installation tools and utilities. SBS has developed and is the owner of the Product, as defined in this Agreement. 
 B. SBS desires to assign and sell and Shavlik desires to assume and purchase all of SBS’ rights, title and interest to the Product. 
 C. SBS further desires to assign, and, subject to the terms of this Agreement, Shavlik is willing to assume, certain SBS’ post closing obligations and rights with regard to all end user licenses granted by SBS to
its customers to use the Product (each a “Customer” and collectively the “Customers” or the “Customer Base”), and SBS’ channel partners listed on Schedule 2.2, such that Shavlik shall be responsible for servicing
and supporting SBS’ Customer Base for the Product after January 31, 2007 (the “Closing Date”). 
 D. SBS further desires
to obtain, royalty-free, the right, for a period of twelve (12) months from the Closing Date to grant a sublicense to use the Product in its current form to Hitachisoft, subject to the terms and conditions set forth herein. 
 NOW THEREFORE, the Parties agree as follows: 
 ARTICLE 1. 
 DEFINITIONS 
 1.1 Product. “Product” means SBS’ UpdateEXPERT and UpdateEXPERT Premium software applications, together with any application programming interfaces for UpdateEXPERT and UpdateEXPERT
Premium software (including but limited to the SBS SecurityEXPERT), the compiler used in connection with UpdateEXPERT and UpdateEXPERT Premium software, and all other software, programs, applications, modules and components thereof, in all forms,
including the Source Code, object code, all related documentation, all prior and current versions, improvements, enhancements, upgrades, corrections, additions, modifications, replacements, and new applications to any of the foregoing; and all
Intellectual Property Rights in any of the foregoing, together with SBS’ rights in any third party materials listed in Schedule 7.2.13. In no event shall “Product” include SBS’ on-demand service, iPrism, ePrism and/or Open File
Manager products, nor any open source materials or software included in or used with the Product other than SBS’ rights in any third party materials listed in Schedule 7.2.13. To the extent that the Product contains code that is also
included in other SBS products relating to non-core functionality, such as for license key generation and other administrative functions associated with use of the Product, notwithstanding any provision in this Agreement to the contrary, SBS retains
all Intellectual Property Rights to such code and grants to Shavlik a perpetual, non-exclusive, irrevocable license to continue to use, distribute, and make derivative copies of such code as part of the Product. 
 1.2 Intellectual Property Rights. “Intellectual Property Rights” means all of the following in any jurisdiction throughout the
world, whether or not filed, perfected, registered or recorded and whether now or hereafter existing, filed, issued or acquired: (i) trademarks, service marks, trade names, trade dress, logos, (and all translations, adaptations, derivations and
combinations of the foregoing), Internet domain names, together with all goodwill associated with each of the foregoing; (ii) copyrights, rights of authorship; (iii) inventions, moral rights, patents, and rights of inventorship,
(iv) all applications, registrations and renewals in connection with any of the above in (i)-(iii); know-how, trade secrets, and all other intellectual property rights related thereto. 
  

					
	Asset Sale & License Agreement	  	Page 1.	  	

 1.3 SBS Materials. “SBS Materials” means (i) any application program
interface, assemblers, compilers and other authoring tools created by SBS or owned by SBS and necessary to modify the Product as well as any development tools created by SBS or owned by SBS and used in the development of the Product, including all
comments, in text and machine readable form, (ii) documentation for the Product, including user manuals, installation guides, marketing materials, product awards, Customer references, competitive analyses, sales training materials,
white-papers, tech-notes, help files and marketing collateral, architectural and design documentation, in SBS’ possession and reasonably necessary or helpful in connection with development, support, marketing or sales of the Product,
(iii) know-how related to the use and modification of the Source Code as reflected in such materials, (iv) software tools, data test scripts, test plans, automated test tools, designs and results that SBS currently uses in connection with
development or support of the Product, (v) SBS’ interest in any software licenses related to the Product, (vi) Source Code; (vii) Customer Relations Materials; and (viii) Electronic Materials. 
 1.4 Customer Relations Materials. “Customer Relations Materials” means any data (whether in physical or electronic format)
regarding past, existing, or potential customers for the Product, including but not limited to information maintained in any lead generation or customer relationship management systems of SBS. 
 1.5 Electronic Materials. “Electronic Materials” means any electronic data, databases, or content used in the promotion of the
Product or in distribution and optimization of the Product. 
 1.6 Source Code. “Source Code” means the
human-readable source code, source program, scripts and/or programming language for the Product. Source Code includes all source code listings, instructions (including compile instructions), programmer’s notes, commentary and related technical
information and documentation, including all such information and documentation owned and used by SBS for purposes of maintaining, repairing, or making modifications or enhancements to the Product and the Source Code. This includes but is not
limited to the following: (i) Master Agent and Leaf Agent programs; (ii) backup/restore utilities for master agent; (iii) User Interface Console; (iv) installer programs; tools and utilities for discovering and integrating patch
data into the master patch database; (v) utility for patch distribution through disconnected networks; (vi) tools used to target the master database to previous product versions; (vii) customer database and hosted patch distribution
website; SE template database server; (viii) tools and utilities for creating and updating settings templates; (ix) integrated knowledge base; (x) serialization software; and (xi) build scripts and tools used in creating and
packaging the software. 
 1.7 Knowledge. “Knowledge” means the actual knowledge of persons responsible for the
relevant subject matter, or, in the case of any person who is a management or executive position, the knowledge such persons would have assuming due inquiry, given their respective role, into the facts related to such matters. 
 ARTICLE 2. 
 ASSET SALE, ASSIGNMENT
OF CUSTOMER BASE & LICENSE 
 2.1 Asset Sale. Effective as of the Closing Date, subject to the terms and
conditions of this Agreement, including Shavlik’s payment of the Purchase Price, SBS hereby assigns to Shavlik all of SBS’ right, title, and interest worldwide in and to the Product, the Assumed Contracts (defined below), the SBS
Materials, and all Intellectual Property Rights therein (collectively the “Purchased Assets”), provided that SBS retains the right to collect for its own account all 1Q2007 (first calendar quarter, 2007) Customer contract renewal fees
invoiced prior to the Closing Date. SBS shall execute and deliver the Copyright Assignment attached as Exhibit A on the Closing Date. If any moral rights in the Product cannot (as a matter of law) be assigned by SBS to Shavlik as provided above,
then SBS waives the enforcement of such moral rights and all claims and causes of action of any kind against Shavlik with respect to such 

  

					
	Asset Sale & License Agreement	  	Page 2.	  	

 
moral rights. SBS shall deliver or make available to Shavlik the SBS Materials promptly following the Effective, and no event later than thirty
(30) days following the Closing Date. No ownership rights are granted with respect to any SBS trademarks not related to the Product that may be embedded in the Product or the SBS Materials, including trademarks relating to SBS’ on-demand
services, iPrism, ePrism and Open File Manager products (“Non-product Marks”). SBS hereby grants to Shavlik a perpetual, royalty free license to the Non-product Marks solely to allow Shavlik to continue to use, distribute, copy,
sublicense, and produce the Product with the Non-product Marks embedded. 
 2.2 Liabilities. Shavlik will not assume, agree to pay,
perform or discharge or in any way be responsible for any debts (including interest and/or penalties thereon), liabilities or obligations of SBS of any kind or nature whatsoever, whether fixed or unfixed, known or unknown, absolute or contingent,
asserted or unasserted, choate or inchoate, liquidated or unliquidated, or secured or unsecured (the “Excluded Liabilities”), except that Shavlik will assume and agrees to pay, perform and discharge the following from and after the Closing
Date (the “Assumed Liabilities”): obligations and liabilities relating to or arising under the Assumed Contracts after the Closing Date, other than (i) any liability or obligation to the extent relating to or arising from any breach,
or event, circumstance or condition that with notice, lapse of time or both would constitute or result in a breach, by SBS prior to the Closing Date of any of its obligations thereunder, (ii) any warranty claims of customers relating to sales
of the Product prior to the Closing Date, and (iii) any obligation to indemnify customers relating to the Inquiry (defined in Section 7.2.5). For the purposes of this Agreement, “Assumed Contracts” shall mean (a) any
customer or end user license agreements that SBS has entered into for the Product that are listed on Schedule 2.2 or otherwise created in the ordinary course of business in connection with SBS’ acceptance and fulfillment of orders for the
Product (standard end user license agreements listed on Schedule 2.2 which are created via shrink wrap or click wrap customer acknowledgment mechanisms relating to acceptance or installation and use of the Product); (b) any customer or end
user license agreements that are not listed on Schedule 2.2 that Shavlik, in its sole discretion, assumes after the Closing Date; (c) contracts and agreements with Channel Partners that are listed on Schedule 2.2; and
(d) contracts and agreements with Channel Partners that are not listed on Schedule 2.2 that Shavlik, in its sole discretion, assumes after the Closing Date. A list of all present customers comprising the Customer Base, all present Channel
Partners, and all known potential customers (“Leads”) as of December 31, 2006 will be delivered to Shavlik within three (3) business days of the Effective Date, and an updated list of all known Leads as of the Closing Date will
be delivered to Shavlik within three (3) business days of the Closing Date. Copies of any documents or records relating to such Customer and Channel Relationships (along with originals of contracts, if available) will be delivered to Shavlik
within three (3) business days of the Effective Date, and updated copies will be delivered to Shavlik within three (3) business days of the Closing Date. SBS shall further deliver to Shavlik all data about the Customer Base that SBS
maintains in its customer relationship database within three (3) business days of the Effective Date, and an updated copy of such data within three (3) business days of the Closing Date. While SBS represents that this information is the
same information that it has accumulated and maintained in the ordinary course of its business in connection with development, distribution and support of the Product, SBS makes no warranty as to the completeness or accuracy of such information or
data except as expressly set forth herein. 
 ARTICLE 3 
 LICENSES. 
 3.1 Right to Grant License to Hitachisoft. As of the Closing Date, Shavlik
grants SBS an exclusive, non-assignable royalty-free source code license (which license shall expire one year from the Closing Date) to the Product solely to grant to Hitachisoft a perpetual sublicense to localize and use the Product for
Hitachisoft’s internal purposes only (supporting Hitachisoft’s customers in connection with provisioning them with updates and patches for its software products). SBS shall retain any sublicense fees paid by Hitachisoft under any such
sublicense. SBS shall have no right to make, use or distribute the Product or derivative works based on the Product independent of what my be required under such sublicense with Hitachisoft or as otherwise provided herein. 
 3.2 Right to Use HFNetChkPro Plus. As of the Closing Date, Shavlik grants to SBS a royalty-free, non-exclusive, perpetual license to use
Shavlik’s HFNetChkPro Plus software application for up to 
  

					
	Asset Sale & License Agreement	  	Page 3.	  	

 1,000 users for SBS internal purposes only pursuant to the terms of Shavlik’s standard End User License Agreement.
SBS shall be entitled to receive three (3) years of maintenance and data access services from Shavlik under the terms of Shavlik’s standard Support Services Agreement. Thereafter, SBS may renew its Support Services Agreement with Shavlik
under terms set forth therein at Shavlik’s standard published rates for comparably sized licenses. SBS will provide to Shavlik a public endorsement in form reasonably acceptable to SBS indicating that SBS uses HFNetChkPro Plus for its internal
“Active Vulnerability Management” needs. 
 3.3 US Bankruptcy Code. The licenses hereunder are and will be deemed to
be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of rights to “intellectual property” as defined under Section 101 of the U.S. Bankruptcy Code. Notwithstanding any contrary provision in this Agreement, the
parties agree that SBS, as a licensee of such rights under this Agreement, will retain and may fully exercise all of its rights and elections under the U.S. Bankruptcy Code, however, nothing herein will be deemed to constitute a present exercise of
such rights and elections. 
 ARTICLE 4. 
 SUPPORT AND TRAINING 
 4.1 Support. SBS is responsible for supporting the Product and
the Customer Base from the Effective Date through the Closing Date at no cost to Shavlik . SBS shall continue to operate the business related to the Product and Customer Base, and to support the Product and Customer Base, in the same manner that it
provided such support in the year prior to the Effective Date; provided, however, that SBS shall not offer to any new customers a maintenance contract with a term of over two (2) years from the period from the Effective Date to the Closing Date
(without limiting SBS’ ability to renew existing maintenance contracts with terms in excess of two (2) years). Shavlik shall undertake, at its expense (except as provided below) all Product support activities and obligations, Effective
upon the Closing Date, provided that: 
 4.1.1 SBS agrees not to involuntarily terminate the employment of at least one employee who has been
involved in data base development and one employee who has been involved in technical support (the “Retained Employees”) from the Closing Date through March 31, 2007 (the “Transition Period”). SBS shall use its best efforts
to make the Retained Employees, (or in the event of a voluntary termination of any Retained Employee, a replacement development or tech support staff member), available to assist Shavlik and training Shavlik personnel with regard to supporting the
Product and the Customer Base during the Transition Period. Shavlik will be responsible for travel related expenses relating to any training at Shavlik’s facilities. SBS shall be responsible for all other expenses related to such employment,
including any retention bonuses or other costs of employment of the Retained Employees. 
 4.1.2 SBS agrees not to involuntarily terminate
the employment of its employees other than the Retained Employees who have been involved in technical support and data base development for the Product (“Other Technical Support Employees”) through February 16, 2007. SBS shall use its
best efforts to make the Other Technical Support Employees available to assist Shavlik through February 16, 2007. 
 4.1.3 After the
Closing Date, SBS shall provide links to Shavlik’s website for the Product on SBS’ website through 1Q2008. As of the Effective Date, SBS shall refer (via a communication mechanism to be mutually agreed upon) all Product inquiries to
Shavlik. SBS shall further terminate any Product marketing efforts as of the Effective Date, to the extent terminable, or shall implement procedures for referring Product specific leads received by SBS after such date to Shavlik. 
 4.1.4 SBS shall be responsible for invoicing for license renewals during the Transition Period. Prior to the Closing Date, SBS shall invoice for renewals
on SBS form invoices. From the Closing Date through the Transition Period, SBS shall invoice for renewals on Shavlik form invoices. SBS shall collect and be entitled to retain all renewal fees for all renewal invoices sent prior to the Closing Date
(for 1Q2007 renewals). Each party will establish procedures for identifying and timely remitting to the other any renewal payments received that should have been paid to the other party. 
  

					
	Asset Sale & License Agreement	  	Page 4.	  	

 4.1.5 SBS will continue to maintain and host the Product patch database and download for a reasonable
period following the Closing Date to allow a smooth transition of the hosting of such database and download information to Shavlik. 
 4.2
Training. SBS shall provide, at no additional charge, up to 5 full days (8 hours per day) of training regarding sales and marketing, development, and technical support for the Product. 
 ARTICLE 5. 
 CONSIDERATION

 5.1 Purchase Price. In consideration of assignment of the Product, Customer Base and Channel Relationships, and the
transition services to be provided by SBS: Shavlik shall assume the Assumed Liabilities and pay to SBS the following (the “Purchase Price”): 
 5.1.1 $100,000 as earnest money (the “Earnest Money”) on the Effective Date; plus 
 5.1.2
$1,100,000 on the Closing Date; plus 
 5.1.3 If and only after Shavlik collects $1,200,000 in fees on accounts of maintenance renewals from
the Customer Base which are invoiced by Shavlik from February 1, 2007 through January 31, 2008 (“Renewals), Shavlik shall begin to pay to SBS forty-five percent (45%) of fees related to Renewals collected thereafter
(“Additional Renewal Fees”). Any share of Additional Renewal Fees payable to SBS shall be paid monthly by Shavlik to SBS on the 20th day of the each month for all fees actually collected in the prior calendar month on account of the Renewals. 
 5.2 Taxes. All taxes, duties, fees and other governmental charges of any kind (including sales and use taxes, but excluding taxes based on the gross revenues or income of SBS) which are imposed by or under the authority of any
government or any political subdivision thereof on any aspect of this Agreement shall be borne by Shavlik. Shavlik agrees to pay, and indemnify and hold harmless SBS against, all taxes based on the license, rental, sale, transfer, assignment, or
other exploitation, distribution or disposition of any intellectual property or intellectual property rights by Shavlik. 
 ARTICLE 6

 CLOSING; CONDITIONS TO CLOSING 
 6.1 Closing Date. The Closing shall take place at San Diego, California or at such other place as the Parties may mutually determine on the Closing Date or upon such other date as the parties may mutually
agree. 
 6.2 Conditions to Closing. 
 6.2.1 Conditions to Obligation of Shavlik. Shavlik’s obligation to purchase the Purchased Assets and to take the other actions required to be taken by Shavlik at the Closing is subject to the satisfaction,
at or before the Closing, of each of the following conditions (any of which may be waived by Shavlik, in its sole discretion, in whole or in part): 
 (a) The representations and warranties set forth in Section 7.2 of this Agreement, individually and collectively, must have been accurate in all material respects as of the date of this Agreement and must be
accurate in all material respects as of the Closing Date as if made on the Closing Date; 
 (b) SBS must have delivered to
Shavlik in form reasonably acceptable to Shavlik, all such certificates, instruments or documents as required by this Agreement; and 
  

					
	Asset Sale & License Agreement	  	Page 5.	  	

 (c) SBS must have demonstrated to Shavlik’s sole satisfaction that the
representations and warranties in section 7.2.13 are true and accurate. In the event that SBS modifies the Product and/or SBS Materials to comply with any third party licenses in the period between the Effective Date and the Closing Date, SBS must
further demonstrate to Shavlik’s sole satisfaction, that the modifications have been fully implemented, documented, and tested (including but not limited to regression testing of the Product) in accordance with best industry standards and
practices and that the modifications do not impair the functionality of the Product. 
 6.2.2 Conditions to Obligation of SBS.
SBS’s obligation to sell the Purchased Assets and to take the other actions required to be taken by SBS at the Closing is subject to the satisfaction, at or before the Closing, of each of the following conditions (any of which may be waived by
SBS, in its sole discretion, in whole or in part): 
 (a) The representations and warranties set forth in Section 7.1 of
this Agreement, individually and collectively, must have been accurate in all material respects as of the date of this Agreement and shall be accurate in all material respects as of the Closing Date; 
 (b) Shavlik must have performed its payment obligations pursuant to Sections 5.1.1 and 5.1.2 of this Agreement; and 
 (c) Shavlik must have delivered to SBS in form reasonably acceptable to SBS all such other certificates, instruments or documents as
required by this Agreement. 
 6.3 Earnest Money/Termination. If the Closing does not occur by the Closing Date or other mutually
agreed upon date, this Agreement shall terminate. If this Agreement is terminated by Shavlik due to a failure of SBS to fully comply with its obligations under this Agreement or due a mutual agreement by the parties to terminate the Agreement, SBS
shall refund to Shavlik the entire Earnest Money payment. If however the Agreement is terminated by SBS due to a failure of Shavlik to fully comply with its obligations under this Agreement or based on notice from Shavlik of its intent to terminate
this Agreement without cause; SBS may retain the Earnest Money payment. 
 ARTICLE 7 
 WARRANTIES AND OTHER COVENANTS 
 7.1
Representations and Warranties of Shavlik. Shavlik represents and warrants to SBS : 
 7.1.1 Shavlik is a limited liability
corporation validly existing and in good standing under the laws of its jurisdiction of incorporation or formation; 
 7.1.2 The execution,
delivery and performance by Shavlik of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary action on the part of Shavlik and do not violate any provisions of its organizational
documents, any applicable regulation or any contract or order binding upon it; and 
 7.1.3 This Agreement constitutes a valid and binding
agreement of Shavlik enforceable against Shavlik in accordance with its terms. 
 7.2 Representations And Warranties Of SBS.
SBS represents and warrants to Shavlik: 
 7.2.1 SBS is a corporation duly organized, validly existing and in good standing under the laws of
the state of its incorporation. The copies of SBS’ certificate of incorporation and by-laws, or similar organizational documents, as the case may be, which have been furnished to Shavlik reflect all amendments made thereto at any time prior to
the date of this Agreement and are correct and complete. 
  

					
	Asset Sale & License Agreement	  	Page 6.	  	

 7.2.2 The execution, delivery and performance of this Agreement to which SBS is a party and the
transactions contemplated herein, have been duly authorized by SBS, as the case may be. This Agreement constitutes a valid and binding obligation of SBS, enforceable in accordance with its terms. The execution and delivery by SBS of this Agreement,
and the fulfillment of and compliance with the respective terms hereof, do not and shall not (i) conflict with or result in a breach of the terms, conditions or provisions of, (ii) constitute a default under, (iii) result in the
creation of any Lien upon any of the Purchased Assets pursuant to, (iv) give any third party the right to modify, terminate or accelerate any obligation under, (v) result in a violation of, or (vi) require any exemption or other
action by or notice or declaration to, or filing with, or other consent from, any governmental entity pursuant to, the charter or by-laws, or similar organizational documents, of SBS, or any legal requirement to which SBS or any of its assets or
properties is subject, or any contract, order, judgment or decree to which any of the foregoing Persons or the Product is subject. 
 7.2.3
SBS owns and possesses all right, title and interest in and to all of the Purchased Assets, free and clear from any liens and claims or rights of joint owners, employees, agents, consultants, or other parties involved in the creation of the Product.
The Product consists entirely of material (i) which was created as a work for hire (as defined under U.S. copyright law) by a person or persons who were at the time of creation the regular, full-time, salaried employees of SBS, the copyright in
which is now owned by SBS; or (ii) the copyright ownership of which was fully and irrevocably transferred to SBS pursuant to a written agreement executed by the author or authors. Except as set forth in the Assumed Contracts and the agreements
listed on Schedule 7.2.3, SBS has not sold, licensed (other than in the ordinary course of business), leased, assigned or otherwise transferred the Product or the Intellectual Property Rights therein to any third party, other than to Shavlik. The
Product is not subject to any restrictions or limitations (including any orders, judgments, decrees, stipulations, or settlement agreements) regarding ownership, use, or enforcement, other that restrictions arising from open source content or third
party licenses. 
 7.2.4 Except for the agreements listed on Schedule 2.2 and Schedule 7.2.4, there are no contracts, covenants, agreements,
releases, or other obligations relating to the Purchased Assets in any manner, including any transfer, lease, license, reseller or distribution arrangements, option, indemnity, Source Code delivery, or escrow obligation. 
 7.2.5 Other than the inquiry dated September 14, 2006 a copy of which was provided to Shavlik (the “Inquiry”) there is neither pending nor
threatened any claim, litigation or other proceeding against SBS, to its Knowledge, regarding the Product, the Source Code, the SBS Materials, or any third party software materials incorporated into the foregoing by or for SBS, including without
limitation any claims of infringement of any Intellectual Property Rights and/or contesting the ownership, enforceability, validity, operation or use of the Product, the Source Code, the SBS Materials or third party software materials incorporated
into the foregoing or any of the Intellectual Property Rights related thereto. 
 7.2.6 To SBS’ knowledge, neither SBS nor the Product
infringes, misappropriates or otherwise conflicts with any Intellectual Property Rights of any third party, and, other than the Inquiry, SBS has not received any notices regarding any of the foregoing (including any demands or offers to license any
Intellectual Property Rights from a third party). To SBS’ Knowledge, no third party has infringed, misappropriated or otherwise conflicted with any of SBS’ rights in the Product. 
 7.2.7 The Product has in all material respects been maintained in compliance with and is currently in compliance with all applicable laws, ordinances,
codes, rules, requirements, regulations and other legal requirements of all Governmental Entities, and SBS has not received notice or has Knowledge of any violation of any of the foregoing. 
 7.2.8 As of the Closing Date, the Product shall (i) not contain any Trojan horses, worms, viruses or programming routines intended to interfere,
damage, corrupt, surreptitiously intercept or expropriate any system, data, or personal information; and (ii) not contain any known, critical bugs preventing use of the Product or otherwise significantly reducing Product performance other than
as described in SBS’ bug database disclosed to Shavlik. 
  

					
	Asset Sale & License Agreement	  	Page 7.	  	

 7.2.9 The Purchased Assets include substantially all assets, properties, rights, and interests employed
by SBS to manufacture, sell and service Products as currently manufactured, sold and serviced by SBS and, to SBS’ knowledge, no additional assets, properties, rights, and interests are required in order to enable Shavlik to manufacture, sell
and service Products in substantially the same fashion, other than the rights, including open source licenses, set forth in Schedule 7.2.13, and third party tools set forth in Schedule 7.2.9. 
 7.2.10 No material supplier of SBS has cancelled any contract or order for provision of, and to SBS’ knowledge, there has been no threat by any such
supplier not to provide products, supplies, or services to the business associated with the Purchased Assets, that are required in order to enable Shavlik to manufacture, sell and service Products in substantially the same fashion as manufactured,
sold or serviced by SBS prior to the Closing Date. 
 7.2.11 Except for (two) 2 product returns for less than $5000 in the aggregate (which
may or may not have been pursuant to warranty rights), there were no warranty claims related to the Products and/or the Purchased Assets in the year prior to the Closing Date. 
 7.2.12 To SBS’ knowledge, there is no default by SBS nor has SBS received any written claim of default by SBS, or any other party thereto, under any
such Assumed Contract and no event has occurred that, with the passage of time or the giving of notice or both, could reasonably be expected to constitute a default by SBS or any other party thereto under any such Assumed Contract, or could
reasonably be expected to permit modification, acceleration, or termination of any such Assumed Contract, or result in the creation of any Lien on any of the Purchased Assets. 
 7.2.13 The only third party software products incorporated into or distributed with the Product are listed on Schedule 7.2.13. SBS is current and not in
default with regard to its obligations under any licenses related to such third party software products. Except as set forth on Schedule 7.2.13, SBS has not (i) distributed Open Source Materials (as defined herein) in conjunction or combination
with the Product. SBS has never used any third party software or other materials in a manner that makes such use by SBS subject to license terms that create or purport to create obligations for SBS with respect to the Product, or that grant or
purport to grant to any third party (with respect to such license) any rights or immunities under any Intellectual Property Rights. “Open Source Materials” means all software or other material that is distributed as “free
software”, “open source software,” “public domain,” “OSI Certified Open Source Software,” or under a similar licensing or distribution model (including, but not limited to, any license approved by the Open Source
Initiative of San Francisco, California, or that requires, as a condition of exploitation of the materials licensed thereby, that other software incorporated into, derived from, or distributed with such licensed materials be (a) disclosed or
distributed in source code form, (b) licensed for the purpose of making derivative works, or (c) redistributable at no charge or minimal charge. 
 7.2.14 DISCLAIMER. EXCEPT AS PROVIDED IN THIS SECTION 7, THE
PRODUCT IS ASSIGNED “AS IS” AND “WITH ALL FAULTS” AND THE EXPRESS WARRANTIES IN
THIS SECTION 7 ARE IN LIEU OF ALL OTHER WARRANTIES, WHETHER EXPRESS,
IMPLIED, OR STATUTORY, REGARDING THE PRODUCT, INCLUDING ANY WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NON-INFRINGEMENT OF
THIRD-PARTY RIGHTS. BUYER ACKNOWLEDGES THAT IT HAS RELIED ON NO
WARRANTIES OTHER THAN THE EXPRESS WARRANTIES IN THIS SECTION 7. 
 7.3 Survival of Representations and Warranties. Each party’s representations, warranties and covenants shall survive for a period of
one year from the Closing Date; provided however the representations and warranties set forth in Sections 7.1, 7.2.1, 7.2.2 and 7.2.3 shall survive until the expiration of the underlying statute of limitations. 
 7.4 Non-Compete. 
 7.4.1 Other
than in connection with a sublicense of the Product to Hitachisoft as contemplated by this Agreement, for a period of three years from and after the Closing Date, SBS agrees that it will not, individually or otherwise, directly or indirectly compete
with Shavlik by marketing or selling a security patch management product, either for itself or for the benefit of another party, where a security 
  

					
	Asset Sale & License Agreement	  	Page 8.	  	

 patch is any software patch or update that is designed to prevent or remediate potential computer security
vulnerabilities. Nothing herein shall prevent SBS from incorporating or developing product update or patch functionality into its other products designed to enable SBS’ customers to obtain updates or patches for such products. 
 7.4.2 The parties acknowledge and agree that the market for the Products is worldwide and that the provisions of this Section 7 shall apply
throughout the world. 
 7.4.3 This obligation shall not bind any successor in interest to SBS in the event that the business of SBS is
transferred or acquired by another party. 
 7.4.4 SBS retains the right to use any residual knowledge or know-how information relating to
the Product in the conduct of its business in the ordinary course so long as such use is not in violation of Section 7.4.1. 
 7.5
Further Assurances. At such times and from time to time on and after the Closing Date, upon reasonable request by Shavlik, SBS will execute, acknowledge and deliver, or will cause to be done, executed, acknowledged and delivered, all
such further acts, deeds, assignments, transfers, conveyances, powers of attorney, and assurances that may reasonably be required for the better use, conveying, transferring, assigning, delivering and confirming ownership to, or reducing to the
possession of, Shavlik or its respective successors and assigns all of the Purchased Assets, and any other rights assets, properties, rights, and interests necessary to enable Shavlik to manufacture, sell and service Products as currently
manufactured, sold and serviced by SBS. 
 ARTICLE 8. 
 INDEMNIFICATION 
 8.1 SBS’ Indemnity. SBS shall indemnify,
defend and hold harmless Shavlik and each of its subsidiaries, divisions, officers, directors, and employees (the “Shavlik Indemnified Parties”) from and against and in respect of any and all demands, claims, actions or causes of
action, assessments, losses, damages, liabilities, interest and penalties, costs and expenses (including, without limitation, reasonable legal fees and disbursements incurred in connection therewith and in seeking indemnification therefor, and any
amounts or expenses required to be paid or incurred in connection with any action, suit, proceeding, claim, appeal, demand, assessment or judgment) whether or not involving a third-party claim (collectively “Indemnifiable Losses”),
directly or indirectly resulting from, arising out of, or imposed upon or incurred by any Shavlik Indemnified Party by reason of any one or more of the following: (i) any claim by a customer included in the Assumed Contracts or by a competitor
that the Products infringe or misappropriate any third party’s Intellectual Property Rights existing on or before the Closing Date under the laws of any country unless such claim results from (a) modification of the Product by Shavlik or
the use of the Product by Shavlik in a manner inconsistent with its documentation, or (b) the combination of the Product with other hardware, software, or functionality; (ii) any breach of SBS’s representations and warranties
hereunder; (iii) the Excluded Liabilities; (iv) any failure of SBS to perform any covenant or agreement hereunder after the Closing Date; and (v) any third party claim alleging any of the foregoing. 
 8.2 Shavlik’s Indemnity. Shavlik shall indemnify, defend and hold harmless SBS and each of its subsidiaries, divisions, officers,
directors, and employees (the “SBS Indemnified Parties”) from and against and in respect of any and all Indemnifiable Losses directly or indirectly resulting from, arising out of, or imposed upon or incurred by any SBS Indemnified
Party by reason of any one or more of the following: (i) the wrongful acts or omissions of Shavlik or its agents relating to or arising out of Shavlik’s distribution or support of the Product after the Closing Date; (ii) any breach of
Shavlik of its representations and warranties hereunder; (iii) the Assumed Liabilities; (iv) any failure of Shavlik to perform any covenant or agreement hereunder after the Closing Date; and (v) any third party claim alleging any of
the foregoing. 
  

					
	Asset Sale & License Agreement	  	Page 9.	  	

 8.3 Contrary Intention. The foregoing indemnities shall be payment obligations and not
merely reimbursement obligations, it being understood that SBS and Shavlik have a “contrary intention” with respect to the provisions of paragraph 2 of Section 2778 of the California Civil Code. 
 8.4 Satisfaction of Indemnification Claim. 
 8.4.1 If a claim by a third party is made against any party that intends to seek indemnification hereunder (the “Indemnified Party”), such Indemnified Party shall promptly notify the indemnifying party of
such claim; provided, however, that failure to give timely notice shall not affect the rights of the Indemnified Party so long as the failure to give timely notice does not adversely affect the indemnifying party’s ability to defend such claim
against a third party and the indemnifying party shall assume the defense of such claim. Both the Indemnified Party and indemnifying party shall act in good faith, provided that the indemnifying party shall not thereby permit to exist any lien,
encumbrance or other adverse charge upon any asset of any Indemnified Party or of its subsidiaries, and the indemnifying party shall permit the Indemnified Party to participate in such settlement or defense through counsel chosen by the Indemnified
Party, with all fees, costs and expenses of such counsel borne by the Indemnified Party. No voluntary entry of judgment or settlement of a claim may be agreed to without the written consent of the Indemnified Party, which consent shall not be
unreasonably withheld, and (v) the indemnifying party shall promptly reimburse the Indemnified Party for the indemnified amount as incurred by the Indemnified Party pursuant to this Agreement. So long as the indemnifying party is reasonably
contesting any such third party claim in good faith as provided herein, the Indemnified Party shall not pay or settle any such claim (or, if it does, it shall not be indemnified for such settlement amount). The controlling party shall upon request
deliver, or cause to be delivered, to the other party copies of all correspondence, pleadings, motions, briefs, appeals or other written statements relating to or submitted in connection with the settlement or defense of any such claim, and timely
notices of any hearing or other court proceeding relating to such claim. 
 8.4.2 A claim for indemnification for any matter not involving a
third-party claim may be asserted by notice to the party from whom indemnification is sought. Such notice shall state the amount of Indemnifiable Losses, if known, the method of computation thereof, and contain a reference to the provisions of the
Agreement in respect to which such right of indemnification is claimed or arises. 
 ARTICLE 9. 
 LIMITATION OF LIABILITY. 
 9.1 THE
TOTAL CUMULATIVE LIABILITY OF SBS UNDER THIS AGREEMENT FOR CLAIMS FOR INDEMNIFICATION MADE PURSUANT TO SECTION 8.1(i) and 8.2(ii) (OTHER THAN (A) CLAIMS FOR INDEMNIFICATION REGARDING THE INQUIRY WHICH RELATE TO CLAIMS MADE BY CUSTOMERS THAT
HAVE NOT RENEWED THEIR MAINTENANCE AGREEMENTS OR ENTERED NEW AGREEMENTS WITH SHAVLIK AFTER THE CLOSING DATE; AND (B) CLAIMS RELATING TO ANY ALLEGED BREACH OF SBS’S WARRANTIES UNDER SECTION 7.2.13) SHALL NOT EXCEED THE PURCHASE PRICE
ACTUALLY PAID TO SBS HEREUNDER. 
 9.2 NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, EXCEPT FOR EITHER PARTY’S INDEMNIFICATION
OBLIGATIONS UNDER ARTICLE 8, NEITHER PARTY SHALL BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES, WHETHER FORESEEABLE OR NOT, THAT ARE IN ANY WAY RELATED TO THIS AGREEMENT, THE BREACH THEREOF, ANY TRANSACTIONS
RESULTING FROM THIS AGREEMENT, LOSS OF GOODWILL OR PROFITS, LOST BUSINESS HOWEVER CHARACTERIZED AND/OR FROM ANY OTHER CAUSE WHATSOEVER. 
  

					
	Asset Sale & License Agreement	  	Page 10.	  	

 ARTICLE 10. 
 GENERAL PROVISIONS 
 10.1 Relationship of Parties. The relationship between the Parties
is only that of buyer and seller, and licensor and licensee, and all Parties are independent contractors notwithstanding any joint activities set forth in this Agreement. Neither SBS nor Shavlik is the agent or legal representative of the other
Party, and neither Party has the right or authority to bind the other Party in any way. This Agreement creates no relationship as partners or a joint venture, and creates no pooling arrangement. 
 10.2 Governing Law and Venue. This Agreement shall be interpreted and enforced under the laws of the State of New York, without application
of its conflicts or choice of law rules. 
 10.3 Assignment. Neither Party shall have the right to assign, delegate, transfer
or otherwise encumber this Agreement or any portion thereof without the other Party’s prior written consent which consent shall not unreasonably be withheld. Notwithstanding the foregoing, either Party shall be permitted to assign this
Agreement to its successor in interest, following a merger, sale of all or substantially all of its assets or stock, or other similar capital transaction. 
 10.4 Waiver. The failure of a Party to enforce any of its rights hereunder or at law shall not be deemed a waiver or a continuing waiver of any of its rights or remedies against the other Party, unless
such waiver is in writing and signed by the Party to be charged. 
 10.5 Severability. If any provision of this Agreement, or
part thereof, is declared by a court of competent jurisdiction to be invalid, void or unenforceable, each and every other provision, or part thereof, shall nevertheless continue in full force and effect. 
 10.6 Notice. All notices, requests or other communications under this Agreement shall be in writing, and shall be sent to the designated
representatives below, and shall be deemed to have been duly given on the date of service if sent by facsimile (provided a hard copy is sent in one of the manners specified below), or on the day following service if sent by overnight air courier
service with next day delivery with written confirmation of delivery, or five (5) days after mailing if sent by first class, registered or certified mail, return receipt requested to the address set forth on the first page of this Agreement.
Each Party is required to notify the other Party in the above manner of any change of address: 
 If to Shavlik: 
 2665 Long Lake Road 
 Suite 400 

Roseville, MN 55113 
 Attn: David Slayton

 With a copy to: 
 Ann Ladd

 Fredrikson & Byron, P.A. 
 200 South Sixth Street, Suite 4000 
 Minneapolis, MN 55402 
 If to SBS: 
 15015 Avenue of Science

 San Diego, California 92128 
 Attn: Al Riedler 
  

					
	Asset Sale & License Agreement	  	Page 11.	  	

 With a copy to: 
 Brad Weller 
 15015 Avenue of Science 
 San Diego, California 92128 
 10.7
Publicity. Upon execution of this Agreement, the Parties will issue a mutually agreed upon press release. Shavlik may publicize information regarding the transactions consummated pursuant to this agreement as set forth in Schedule
10.7. No other announcement will be made by either Party except with the consent and approval of the other, subject to applicable law and listing requirements; provided that, prior to disclosure of any provision of this Agreement to any governmental
agency or stock exchange, the parties shall cooperate to seek confidential treatment or other applicable limitations on the public availability of any information that either of the parties considers sensitive or confidential. 
 10.8 Attorney’s Fees. In the event a dispute arises regarding this Agreement, the prevailing Party shall be entitled to its reasonable
attorney’s fees and expenses incurred in addition to any other relief to which it is entitled. 
 10.9 Captions. The
captions or headings in this Agreement are made for convenience and general reference only and shall not be construed to describe, define or limit the scope or intent of the provisions of this Agreement. 
 10.10 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. 
 10.11 Further Assurances. The Parties agree to execute such additional
documents and perform such acts as are reasonably necessary to effectuate the intent of this Agreement. 
 10.12 Entire
Agreement. This Agreement constitutes the entire agreement between the Parties regarding the subject matter hereof, and supersedes all prior or contemporaneous understandings or agreements, whether oral or written. This Agreement shall be
modified or amended only by a writing signed by Shavlik and SBS. 
 10.13 Authority. The parties executing this Agreement on
behalf of Shavlik and SBS represent and warrant that they have the authority from their respective governing bodies to enter into this Agreement and to bind their respective companies to all the terms and conditions of this Agreement. 
  

					
	Asset Sale & License Agreement	  	Page 12.	  	

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date. 
  

							
	SBS:	 	Shavlik:
		
	 St. Bernard Software, Inc.
	 	 Shavlik Technologies, LLC

				
	By:	 	/s/ Vince Rossi	 	By:	 	/s/ Mark Shavlik
				
	Name:	 	Vince Rossi	 	Name:	 	Mark Shavlik
				
	Title:	 	CEO	 	Title:	 	CEO

  

					
	Asset Sale & License Agreement	  	Page 13.

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