Document:

EX-10.1

 Exhibit 10.1 

SEPARATION AGREEMENT 

This Separation Agreement (the “Agreement”) is entered into as of May 27, 2015, by and between Regional Management
Corp., a Delaware corporation (collectively with each of its subsidiaries and affiliates, the “Company”), and A. Michelle Masters (the “Executive”). The Company and Executive may be referred to individually as a
“Party” and collectively as the “Parties”. 
 WHEREAS, Executive served as Senior Vice President of
Strategic Operations and Initiatives for the Company; 
 WHEREAS, Executive has, subject to the terms of this Agreement, tendered her
resignation from the Company, and the Company has accepted Executive’s resignation, effective as of May 8, 2015 (the “Termination Date”); 

WHEREAS, the Parties have agreed to treat Executive’s resignation as a termination of Executive’s employment by the Company
without cause under the Executive’s LTIP Award Agreements (as such term is defined herein), as applicable; and 
 WHEREAS, the
Parties desire to amicably resolve any dispute arising out of Executive’s employment and termination thereof, with the understanding that such resolution shall not constitute evidence of or be an admission of wrongful conduct, liability, or
fault on the part of Executive or the Company. 
 NOW, THEREFORE, in consideration of the foregoing premises and the respective
agreements of the Company and Executive set forth below, the Company and Executive, intending to be legally bound, agree as follows: 
 1.
Resignation of Employment and Other Positions. 
 Effective as of the Termination Date, Executive shall resign from her position as
Senior Vice President of Strategic Operations and Initiatives and all other titles, positions, and appointments Executive may hold with the Company or any of its direct or indirect subsidiaries or affiliates. Executive will promptly thereafter
receive all accrued but unpaid base salary (“Salary”), unused paid time off (both paid on the first normal payroll payment date to occur after the Termination Date), and reimbursement of all outstanding properly incurred
business-related expenses (payable in accordance with Section 3(d)). 
 2. Assistance with Responsibilities. 

For a period of six (6) months following the Termination Date (the “Assistance Period”), as requested by the Company,
Executive shall provide reasonable assistance in connection with the transition of Executive’s duties and responsibilities. The Parties agree that Executive shall spend no more than twenty (20) hours per month providing such assistance.
Executive shall not be required to travel and shall be reimbursed (in accordance with Section 3(d)) for any reasonable expenses incurred at the Company’s request. Executive acknowledges and agrees that she will be providing such services
as an independent contractor and not as an employee of the Company or any affiliate. Executive further acknowledges and agrees that the treatment of her equity awards as provided in Section 4 below will be the sole compensation to which
Executive is entitled with respect to her services during the Assistance Period. 

  
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 3. Severance Pay and Benefits. 

(a) The Company shall provide to Executive each of the following severance benefits: 

(i) The continued payment of Executive’s Salary for a period of twelve (12) months immediately following the Termination Date (the
“Severance Period”) (based on the Salary in effect as of the Termination Date ($153,000 annually)), payable during the Severance Period in accordance with the Company’s regular payroll practices, commencing with the first
payroll payment date that occurs after the Termination Date; 
 (ii) A pro-rated portion of the Executive’s annual short-term
incentive program target bonus (such annual target bonus being 45% of Executive’s Salary ($68,850)) (the “Bonus”), if any, for 2015 (with such pro-ration calculated based on the number of days elapsed during 2015 through the
Termination Date, divided by 365), but only to the extent such Bonus is earned based on performance goals established for 2015, as applicable, under the Annual Incentive Plan, as determined by the Compensation Committee, such Bonus to be payable, if
at all, when the Bonus would otherwise have been paid had Executive remained employed by the Company; 
 (iii) Reimbursement of the
reasonable attorney’s fees and expenses, not to exceed Five Thousand and No/100 Dollars ($5,000), incurred by Executive in connection with the negotiation and preparation of this Agreement (payable in accordance with Section 3(d)); 

(iv) Provided Executive elects continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1986
(“COBRA”) or similar state laws and timely completes and returns to the Company the documents and payments required for such election, the Company shall reimburse Executive for the cost of COBRA continuation premiums for Executive
and her dependents (as applicable) for a period of twelve (12) consecutive months after the Termination Date under the Company’s group medical plan to the extent that such benefits were in effect for Executive and her dependents as of the
Termination Date; provided, that if at any time during the twelve (12) month period following the Termination Date, Executive becomes eligible to receive health insurance from a subsequent employer, the Company’s obligation to reimburse
Executive for the cost of COBRA continuation premiums shall immediately cease; and 
 (v) Executive outplacement services for a period of
six (6) months immediately following the Termination Date through a provider to be designated by the Company. 
 (b) Notwithstanding
the foregoing provisions of this Section 3, the Company shall not be obligated to provide Executive with any of the severance pay or benefits described in paragraphs (a)(i)–(v) of this Section 3 (such severance pay and benefits,
collectively the “Severance Benefits”), or the benefits provided under Section 4(c) below, unless (i) within 30 days following the Termination Date, (x) Executive signs and delivers the Release of Claims in

  
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favor of the Company as set forth in Exhibit A attached hereto (the “Release”), (y) Executive has not revoked the Release, and (z) the rescission periods
provided by law have expired; and (ii) Executive is in substantial compliance with the terms of this Agreement as of the dates of the payments. The Parties agree that Executive received this Agreement and the Release as of the Termination Date.

 (c) Executive acknowledges and agrees that Executive is considered a “specified employee” within the meaning of
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), as of the Termination Date. As a result, the payment of any amounts under this Section 3 that are considered deferred compensation subject to
Section 409A and are to be paid on account of Executive’s separation from service shall be deferred, as required by Section 409A(a)(2)(B)(i) of the Code, for six (6) months after the Termination Date or, if earlier,
Executive’s death (the “409A Deferral Period”). Any payments that otherwise would have been made during the 409A Deferral Period shall be paid in a lump sum on the first payroll date after the 409A Deferral Period expires, and
the balance of any payments shall be made as described herein. Whenever payments under this Agreement are to be made in installments, each such installment shall be deemed to be a separate payment for purposes of Code Section 409A. 

(d) Notwithstanding anything to the contrary contained herein, with respect to any reimbursement of expenses, or any provision of in-kind
benefits, that are subject to Code Section 409A and related regulations or other guidance, the following conditions shall apply: (i) the expenses eligible for reimbursement or the amount of in-kind benefits provided in any one taxable year
shall not affect the expenses eligible for reimbursement or the amount of in-kind benefits provided in any other taxable year, except for any medical reimbursement providing for the reimbursement of expenses referred to in Code Section 105(b);
(ii) the reimbursement of an eligible expense shall be made no later than the last day of the Executive’s taxable year following the taxable year in which such expense was incurred; and (iii) the right to reimbursement or in-kind
benefits shall not be subject to liquidation or exchange for another benefit. 
 (e) Executive acknowledges and agrees that she is not
entitled to any benefits under this Agreement or otherwise except for the benefits expressly provided herein, accrued benefits under the Company’s 401(k) retirement plan, and the right to continue life insurance coverage at Executive’s
cost (provided that Executive may be required to do so under an individual conversion policy). 
 4. Treatment of Long-Term Incentive
Awards 
 (a) Executive and the Company acknowledge and agree that the Company has previously granted to Executive the following equity,
equity-based, and long-term incentive awards (collectively, the “LTIP Awards”) and no others: (i) a nonqualified stock option (an “NQSO”) for 25,000 shares of the Company’s common stock (the
“Common Stock”) granted under the Company’s 2011 Stock Incentive Plan (the “2011 Plan”) pursuant to a Nonqualified Stock Option Agreement, dated March 27, 2012 (the “2012 Option Award”);
(ii) an NQSO for 6,429 shares of Common Stock granted under the 2011 Plan pursuant to a Nonqualified Stock Option Agreement, dated October 1, 2014; (iii) a performance-contingent restricted stock unit

  
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award for 2,815 shares of Common Stock granted under the 2011 Plan pursuant to a Restricted Stock Unit Award Agreement, dated October 1, 2014; (iv) 50,000 cash-settled performance
shares (a cash-based long-term incentive award) granted under the 2011 Plan pursuant to a Cash-Settled Performance Share Award Agreement, dated October 1, 2014; (v) a restricted stock award for 2,338 shares of Common Stock granted under
the 2011 Plan pursuant to a Restricted Stock Award Agreement, dated October 1, 2014; and (vi) an NQSO for 2,500 shares of Common Stock granted under the 2011 Plan pursuant to a Nonqualified Stock Option Agreement, dated March 11,
2015. 
 (b) Executive and the Company acknowledge and agree that, except as set forth below in this Section 4, (i) the LTIP
Awards granted to Executive shall be governed by the terms of the 2011 Plan and the written award agreements described in Section 4(a) pursuant to which the Company granted the LTIP Awards (the “LTIP Award Agreements”)
(provided, however, that Executive’s resignation shall be treated as a termination of employment by the Company without cause under the 2011 Plan and the LTIP Award Agreements); (ii) the other terms and conditions of the LTIP Award
Agreements shall be unchanged; and (iii) Executive has no other rights with respect to any other awards under any long-term or equity incentive plan of the Company, whether the Company’s 2007 Management Incentive Plan, the 2011 Plan, the
Company’s 2015 Long-Term Incentive Plan, or otherwise. 
 (c) All of the unvested shares underlying the 2012 Option Award shall vest in
full on the effective date of the Release, the exercise period with respect to the 2012 Option Award shall remain outstanding until March 21, 2017 and shall not expire after the conclusion of the ninety (90) day period following the
Termination Date, and the LTIP Award Agreement related to the 2012 Option Award shall be deemed amended to the extent necessary to conform to the provisions of Section 4(c) herein. The treatment of the 2012 Option Award as set forth in this
Section 4(c) is subject to Executive’s execution and non-revocation of the Release. 
 (d) The Company has no obligation to notify
the Executive of the pending expiration or forfeiture of any option or other award. 
 5. Covenants and Continuing Obligations. 

(a) Defined Terms. The following definitions shall apply to the provisions set forth in Section 5 of this Agreement: 

(i) “Business” means the business of providing installment, automobile purchase, and retail purchase loans and related
payment protection insurance to consumers. 
 (ii) “Confidential Information” means trade secrets and confidential
information in written, oral, electronic, and/or other form regarding the Company and/or its businesses, operations, equipment, products, and employees, including, but not limited to (i) the identities of customers and key vendors and
relationships and potential customers and key vendors and relationships; (ii) business methods, practices, strategies, forecasts, pricing, customer lists, and marketing techniques; (iii) the identities of brokers, licensors, vendors, and
other suppliers and the identities of contact persons at such brokers, licensors, vendors, and other 

  
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suppliers; (iv) the identities of key Company employees; (v) advertising and sales materials, research, technology, intellectual property rights, training materials and techniques,
computer software, and related materials; (vi) other facts and financial and other business information concerning the Company or relating to its business, operations, financial condition, results of operations, and prospects; and
(vii) all other information that the Company tries to keep confidential and that has commercial value or is of such a nature that its unauthorized disclosure would be detrimental to the Company’s interests. Notwithstanding the foregoing,
“Confidential Information” will not include information that is approved for public release by the Company or information that Executive can demonstrate (i) is already in or has subsequently entered the public domain, other than as a
result of any breach of this Agreement by Executive, (ii) was in the possession of or known to Executive prior to Executive’s employment with the Company and is not subject to confidentiality restrictions, (iii) was obtained from a
third party not in violation of any agreement with, or duty of confidentiality to, the Company, or (iv) was independently developed by Executive without use of or reference to the Company’s Confidential Information. 

(iii) “Person” means an individual, a corporation, a partnership, a limited liability company, an association, a trust, a
joint stock corporation, a joint venture, an unincorporated organization or any federal, state, county, city, municipal or other local or foreign government or any subdivision, authority, commission, board, bureau, court, administrative panel or
other instrumentality thereof. 
 (b) Confidentiality. Executive acknowledges that during her employment with the Company, Executive
was given, in connection with the conduct of the Business, access and exposure to Confidential Information. Executive agrees that she will not at any time, except as directed by the Company, use for herself or others, directly or indirectly, any
such Confidential Information, and except as required by law or as directed by the Company, Employee will not disclose such Confidential Information, directly or indirectly, to any other Person or use, lecture upon, or publish any of the
Confidential Information. All physical property and all notes, memoranda, files, records, writings, documents, and other materials of any and every nature, written or electronic, that Executive has prepared, developed, or received in the course of
her association with the Company and that relate to or are useful in any manner to the Business or any other business conducted by the Company, are and will remain the sole and exclusive property of the Company. Executive represents and agrees that
she has not and will not remove from the Company’s premises any such physical property, the original, “soft copy,” or any reproduction of any such materials nor the information contained therein, and all such physical property,
materials, and information in her possession or under her custody or control will be immediately turned over to the Company. 
 (c)
Covenant Not to Hire or Solicit Employees. Executive agrees that, for a period of two (2) years immediately following the Termination Date, she shall not, directly or indirectly, on behalf of herself or any other Person, hire any
employee of the Company or solicit or encourage any employee of the Company to leave employment with the Company. 
 (d)
Non-Disparagement. Executive agrees not to make any disparaging remarks, or any remarks that could reasonably be construed as disparaging, regarding the Company or its officers, directors, employees, stockholders, representatives, or agents.

  
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 (e) Reasonableness of Restrictions. Executive has carefully read and considered the
provisions of Section 5 and, having done so, agrees that the restrictions, including, but not limited to, the time period of restriction, are fair and reasonable and are reasonably required for the protection of the interests of the Company and
its officers, directors, stockholders, and other employees. In the event that, notwithstanding the foregoing, any paragraph or provision of Section 5 shall be held to be invalid or unenforceable, the remaining paragraph(s) or provision(s)
thereof shall nevertheless continue to be valid and enforceable as though the invalid or unenforceable paragraph(s) or provision(s) had not been included therein. In the event that any provision of Section 5 relating to the time period of
restriction and/or related aspects is found by a court of competent jurisdiction to exceed the maximum restrictiveness such court deems reasonable and enforceable, then it is the express desire and intent of both the Company and Executive that such
provision not be rendered invalid thereby, but rather that the duration, scope, or nature of the restriction be deemed reduced or modified to the extent necessary to render such provision reasonable, valid, and enforceable. The time period
restriction and/or related aspects deemed reasonable and enforceable by the court shall then become, and thereafter be, the maximum restriction in such regard, and the provision, as reformed, shall remain valid and enforceable. The Company and
Employee acknowledge that this Section 5(e) is contractual in nature and expressly grant a court of competent jurisdiction the authority to effectuate this contractual provision. 

(f) Breach of Restrictive Covenants. Executive acknowledges that this Agreement is designed and intended only to protect the legitimate
business interests of the Company and that the restrictions imposed by this Agreement are necessary, fair, and reasonably designed to protect those interests. Executive further acknowledges that the Company has given her access to certain
Confidential Information, and that the use of such Confidential Information by her on behalf of some other Person (including herself) would cause irreparable harm to the Company. Executive also acknowledges that the Company has invested considerable
time and resources in developing its relationships with its vendors and customers and in training the Company’s employees, the loss of which similarly would cause irreparable harm to the Company. Without limitation, Executive agrees that if she
should breach or threaten to breach any of the restrictive covenants contained in Section 5 of this Agreement, the Company may, in addition to seeking other available remedies, apply for the immediate entry of an injunction restraining any
actual or threatened breaches or violations of said provisions or terms by Executive. If, for any reason, any of the restrictive covenants or related provisions contained in Section 5 of this Agreement should be held invalid or otherwise
unenforceable, it is agreed the court shall construe the pertinent Section(s) or provision(s) so as to allow its enforcement to the maximum extent permitted by applicable law. Executive further agrees that any claimed Company breach of this
Agreement shall not prevent, or otherwise be a defense against, the enforcement of any restrictive covenant or other Executive obligation herein. 

(g) Executive Representations. Executive represents that the restrictions on her business provided in this Agreement are fair and
protect the legitimate business interests of the Company. Executive represents further that the consideration for this Agreement is fair and adequate, and that even if the restrictions in this Agreement are applied to her, she shall still be able to
earn a good and reasonable living from those activities, areas, and opportunities not restricted by this Agreement. Employee represents further she has had an opportunity to consult with independent counsel concerning this Agreement and is not
relying on the Company or its counsel for any related legal, tax, or other advice. 

  
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 (h) Order to Disclose; Limited Disclosure Permitted. In the event that Executive is
required by law or court order to reveal any Confidential Information, Executive agrees to give prompt notice thereof to the Company and shall use her best efforts, at the Company’s request and expense, to disclose: (a) such Confidential
Information only pursuant to a protective order which provides measures to maintain the confidential nature of the Confidential Information, (b) only that portion of the Confidential Information as is necessary to meet the requirements of such
law or court order, and (c) such Confidential Information only to those Persons as required by such law or court order. Notwithstanding the foregoing, nothing in this Agreement prohibits Executive from reporting possible violations of federal
law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, Congress, or any agency Inspector General, or making other disclosures that are protected under
the whistleblower provisions of federal law or regulation. Executive does not need the prior authorization of the Company to make any such reports or disclosures and is not required to notify the Company that she has made or will make such reports
or disclosures. 
 6. Miscellaneous. 

(a) Excess Benefits. Executive acknowledges that this Agreement provides benefits in excess of benefits to which she would be entitled
under any Company policies or severance plans, and such benefits are provided in lieu of any other payments or benefits, rather than in addition to them. 

(b) Tax Matters. Executive acknowledges that the Company shall deduct from any compensation payable to Executive or payable on her
behalf under this Agreement all applicable federal, state, and local income and employment taxes and other taxes and withholdings required by law. Executive acknowledges that the Company has made no representation or warranty regarding the tax
consequences associated with the benefits described under this Agreement, that Executive agrees to pay any federal, state, and local taxes for which she may be personally liable as a result of the benefits conveyed under this Agreement, and that the
Company has no obligation to achieve any certain tax result for Executive. 
 (c) Company Approvals. The Company represents and
warrants to Executive that it (and to the extent required, the Board and the Compensation Committee) has taken all corporate action necessary to authorize this Agreement. 

(d) Continuing Cooperation. Until the expiration of the applicable statutes of limitations, Executive agrees to provide continuing
cooperation to the Company in the defense of any asserted or unasserted claims, charges or lawsuits pending against it. Such cooperation shall include, but not be limited to, providing the Company with information, affidavits, deposition testimony
or testimony as a witness in any forum; provided, however, that compliance with this Section 6(d) will not be enforced in such a way as to impose an undue burden upon Executive. Executive also agrees to participate in joint messages to
financial institutions and oversight agencies. 

  
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 (e) No Mitigation. In no event shall Executive be obligated to seek other employment or
take any other action to mitigate the amounts payable to Executive under any of the provisions of this Agreement, nor shall the amount of any payment hereunder be reduced by any compensation earned as a result of Executive’s employment by
another employer, except that any continued Separation Benefits may be reduced as provided for by Section 3(a)(iv) of this Agreement. 

(f) Beneficiary. If Executive dies before receiving all of the amounts payable to her in accordance with the terms and conditions of
this Agreement, such amounts shall be paid to the beneficiary (“Beneficiary”) designated by Executive in writing to the Company during her lifetime, or if no such Beneficiary is designated, to Executive’s estate. Executive may
change her designation of Beneficiary or Beneficiaries at any time or from time to time without the consent of any prior Beneficiary, by submitting to the Company in writing a new designation of Beneficiary. 

(g) Governing Law; Jurisdiction; Venue. All matters relating to the interpretation, construction, application, validity and enforcement
of this Agreement shall be governed by the laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule, whether of the State of Delaware or any other jurisdiction, that would cause the application of laws
of any jurisdiction other than the State of Delaware. Executive and the Company knowingly and voluntarily agree that any controversy or dispute arising out of or otherwise related to this Agreement, including any employment or statutory claim, shall
be tried exclusively, without jury, and consent to personal jurisdiction in the state courts of Greenville, South Carolina or the United States District Court for the District of South Carolina, as appropriate. 

(h) Entire Agreement. Except as otherwise provided herein, the Agreement contains the entire agreement of the parties relating to the
subject matter hereof and supersedes all prior agreements and understandings with respect to such subject matter, and the Parties hereto have made no agreements, representations or warranties relating to the subject matter of this Agreement that are
not set forth herein. 
 (i) Amendments. No amendment or modification of this Agreement shall be deemed effective unless made in
writing and signed by the parties hereto. 
 (j) No Waiver. No term or condition of this Agreement shall be deemed to have been
waived, except by a statement in writing signed by the party against whom enforcement of the waiver is sought. Any written waiver shall not be deemed a continuing waiver unless specifically stated, shall operate only as to the specific term or
condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived. 

(k) Assignment. This Agreement shall not be assignable, in whole or in part, by either party without the written consent of the other
party, except that the Company may, without the written consent of Executive, assign its rights and obligations under this Agreement to any corporation or other business entity (i) with which the Company may merge or consolidate, or
(ii) to which the Company may sell or transfer all or substantially all of its assets or capital stock. 

  
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 (l) Separate Representation. Executive hereby acknowledges that she has sought and
received independent advice from counsel of Executive’s own selection in connection with this Agreement and has not relied to any extent on any director, officer, or stockholder of, or counsel to, the Company in deciding to enter into this
Agreement. 
 (m) Notices. Any notice hereunder shall be in writing and shall be deemed to have been duly given if delivered by hand,
sent by reliable next-day courier, or sent by registered or certified mail, return receipt requested, postage prepaid, to the party to receive such notice addressed as follows: 

If to the Company: 

Regional Management Corp. 

509 West Butler Road 

Greenville, SC 29607 

P.O. Box 776 

Mauldin, SC 29662 

Facsimile No.: (864) 422-8035 

Attention: Brian J. Fisher, Vice President and General Counsel 

with a copy to: 

Womble Carlyle Sandridge & Rice, LLP 

550 South Main Street, Suite 400 

Greenville, SC 29601 

Attention: Elizabeth O. Temple 

If to Executive: 
 A. Michelle
Masters, at the residence address in the Company’s personnel records as of the Termination Date 
 or addressed to such other address as may have been
furnished to the sender by notice hereunder. All notices shall be deemed given on the date on which delivered if delivered by hand or on the date sent if sent by overnight courier or certified mail, except that notice of change of address will be
effective only upon receipt by the other party. 
 (n) Counterparts. This Agreement may be executed in any number of counterparts,
and such counterparts executed and delivered, each as an original, shall constitute but one and the same instrument. 
 (o)
Severability. Subject to Section 5 hereof, to the extent that any portion of any provision of this Agreement shall be invalid or unenforceable, it shall be considered deleted herefrom and the remainder of such provision and of this
Agreement shall be unaffected and shall continue in full force and effect. 

  
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 (p) Captions and Headings. The captions and paragraph headings used in this Agreement are
for convenience of reference only and shall not affect the construction or interpretation of this Agreement or any of the provisions hereof. For the sake of clarity, references to “Section(s)” herein shall refer to the corresponding
Sections of this Agreement. 
 [Signature page immediately following] 

  
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 IN WITNESS WHEREOF, Executive and the Company have executed this Separation Agreement as of the
date first above written. 
  

			
	REGIONAL MANAGEMENT CORP.
		
	By		 /s/ Brian J. Fisher

			BRIAN J. FISHER
	Its		VICE PRESIDENT AND GENERAL COUNSEL
	
	 /s/ A. Michelle Masters

	A. MICHELLE MASTERS

  
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 EXHIBIT A 

RELEASE OF CLAIMS 
 This
Release of Claims (“Agreement”) is made and entered into by and between Regional Management Corp. (the “Company”) and A. Michelle Masters (the “Executive”). 

BACKGROUND 
 A. The
Company and Executive are parties to a Separation Agreement that, among its terms, provides that the Company will pay Executive certain individually tailored severance benefits (the “Severance”) and provide benefits related to
Executive’s equity and equity-based compensation (the “Equity Award Benefits”) in connection with the termination of Executive’s employment thereunder (the “Separation Agreement”). 

B. Under the Separation Agreement, the Company is not obligated to pay the Severance or provide the Equity Award Benefits unless Executive has
signed a release of claims in favor of the Company. The parties intend this Agreement to be that release of claims. 
 NOW, THEREFORE, based
on the foregoing and the terms and conditions below, the Company and Executive, desiring to amicably resolve any and all existing and potential disputes between them as of the date each executes this Agreement, and in consideration of the
obligations and undertakings set forth below and intending to be legally bound, agree as follows. 
 1. Company’s
Obligations. In return for “Executive’s Obligations” (as defined in Section 2 below), and provided that Executive signs this Agreement and does not exercise Executive’s rights to revoke or rescind Executive’s
waivers of certain discrimination claims (as described in Section 5 below), the Company will pay to Executive the Severance and provide the Equity Award Benefits as provided in the Separation Agreement. 

2. Executive’s Obligations. In return for the Company’s Obligations in Section 1 above, Executive
knowingly and voluntarily agrees to the following: 
 (a) Executive hereby fully, finally and forever releases, waives, and
discharges, to the maximum extent that the law permits, any and all legal, equitable and administrative claims, actions, causes of action, suits, debts, accounts, judgments and demands (collectively, “Claims”) against the Company or any of
its direct or indirect subsidiaries or affiliates that Executive has through the date on which Executive signs this Agreement. This full and final release, waiver, and discharge extends to all and each of every legal, equitable and administrative
Claim(s) of any kind or nature whatsoever including, without limitation, the following: 
 (i) All Claims that Executive has
now, whether or not Executive now knows about or suspects such claims; 
 (ii) All Claims for attorney’s fees; 

(iii) All rights and claims of age discrimination and retaliation under the Age Discrimination in Employment Act
(“ADEA”) as amended by the Older Workers Benefit 

  
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Protection Act of 1990 (“OWBPA”); and discrimination and retaliation claims of any kind or nature whatsoever under federal, state, or local law, including, for example, claims of
discrimination and retaliation under Title VII of the Civil Rights Act of 1964, and the Americans With Disabilities Act (“ADA”); 

(iv) All Claims arising out of Executive’s employment and Executive’s separation from employment with the Company
including, for example, any alleged breach of contract, breach of implied contract, wrongful or illegal termination, defamation, invasion of privacy, fraud, promissory estoppel, and infliction of emotional distress; 

(v) All Claims for any other compensation, including vacation pay, other paid time off, severance pay, other severance
benefits, incentive opportunity pay, other grants of incentive compensation, grants of stock, and stock options; 
 (vi) All
Claims under the Employee Retirement Security Act of 1974, as amended (“ERISA”); and 
 (vii) All Claims for any
other alleged unlawful employment practices arising out of or relating to Executive’s employment or separation from employment with the Company. 

(b) Executive will not commence any civil actions against the Company except as necessary to enforce its obligations under this Agreement and
the Separation Agreement. The Severance that Executive is receiving in the Separation Agreement has a value that is greater than anything to which Executive is entitled. Other than what Executive is receiving in the Separation Agreement, the Company
owes Executive nothing else in return for Executive’s Obligations. 
 3. Certain Definitions. For purposes of
Section 2, “Executive” means A. Michelle Masters and any person or entity that has or obtains any legal rights or claims through A. Michelle Masters. Further, the “Company” means Regional Management Corp. and any parent,
subsidiary, and affiliated organization or entity in the present or past related to Regional Management Corp., and any past and present officers, directors, members, governors, attorneys, employees, agents, insurers, successors, and assigns of, and
any person who acted on behalf of or instruction of Regional Management Corp. 
 4. Other Provisions. 

(a) The Company has paid or will pay Executive in full for all reimbursable business expenses, earned annualized salary, earned unpaid bonus
pay, and any other earnings through the last day of Executive’s employment. 
 (b) Nothing in this Agreement affects Executive’s
rights in any qualified retirement or welfare benefit plan or program in which Executive was a participant while employed by the Company. The terms of such plans and programs control Executive’s rights with respect thereto. 

  
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 (c) The Company will indemnify Executive as permitted by and pursuant to any agreement or policy
that the Company has adopted relating to indemnification of directors, officers, and employees, and as permitted by and pursuant to any provision of the Company’s certificate of incorporation or by-laws relating to such indemnification. 

(d) Executive will continue to be covered as permitted by and pursuant to any policy of directors and/or officers liability insurance policy
on the terms and conditions of the applicable policy documents. 
 5. Executive’s Rights to Counsel, Consider, Revoke and
Rescind. 
 (a) The Company hereby advises Executive to consult with an attorney prior to signing this Agreement. 

(b) Executive further understands that Executive has 21 days to consider Executive’s release of rights and claims of age discrimination
under the ADEA and OWBPA, beginning the date on which Executive receives this Agreement. Executive agrees that she was provided this Agreement on May 8, 2015 for consideration. If Executive signs this Agreement, Executive understands that
Executive is entitled to revoke Executive’s release of any rights or claims under the ADEA and OWBPA within seven days after Executive has executed it, and Executive’s release of any rights or claims under the ADEA and OWBPA will not
become effective or enforceable until the seven-day period has expired. To revoke such release, Executive must put the rescission in writing and deliver it to the Company by hand or mail within the seven day period. If Executive delivers the
rescission by mail it must be: (i) postmarked within 7 calendar days after the date on which Executive signs this Agreement; (ii) addressed to the Company, c/o Brian J. Fisher, 509 West Butler Road Greenville, SC 29607; and (iii) sent
by certified mail return receipt requested. 
 If Executive revokes or rescinds Executive’s waivers of discrimination claims as
provided above, Executive shall not be entitled to receive the Severance or the Equity Award Benefits. 
 6. Non-Admission.
The Company and Executive enter into this Agreement expressly disavowing fault, liability and wrongdoing, liability at all times having been denied. Neither this Agreement, nor anything contained in it, will be construed as an admission by either of
them of any liability, wrongdoing or unlawful conduct whatsoever. If this Agreement is not executed, no term of this Agreement will be deemed an admission by either party of any right that he/it may have with or against the other. 

7. No Oral Modification or Waiver. This Agreement may not be changed orally. No breach of any provision hereof can be waived by
either party unless in writing. Waiver of any one breach by a party will not be deemed to be a waiver of any other breach of the same or any other provision hereof. 

8. Governing Law. This Agreement will be governed by the substantive laws of the State of Delaware without regard to conflicts
of law principles. 

  
 14 

 9. Forum Selection-Jurisdiction and Venue. Executive and the Company knowingly and
voluntarily agree that any controversy or dispute arising out of or otherwise related to this Agreement, including any employment or statutory claim, shall be tried exclusively, without jury, and consent to personal jurisdiction in the state
courts of Greenville, South Carolina or the United States District Court for the District of South Carolina, as appropriate. 
 10.
Counterparts. This Agreement may be executed in any number of counterparts, and each such counterpart will be deemed to be an original instrument, and all such counterparts together will constitute but one agreement. 

11. Blue Pencil Doctrine. In the event that any provision of this Agreement is unenforceable under applicable law, the validity
or enforceability of the remaining provisions will not be affected. To the extent any provision of this Agreement is judicially determined to be unenforceable, a court of competent jurisdiction may reform any such provision to make it enforceable.
The provisions of this Agreement will, where possible, be interpreted so as to sustain its legality and enforceability. 
 12.
Agreement Freely Entered Into. Executive and the Company have voluntarily and free from coercion entered into this Agreement. Each has read this Agreement carefully and understands all of its terms, and has had the opportunity to
discuss this Agreement with her/its own attorney prior to its execution. In agreeing to sign this Agreement, neither party has relied on any statements or explanations made by the other party, their respective agents or attorneys except as set forth
in this Agreement. Both parties agree to abide by this Agreement. 
  

									
	Dated:		  
				  

							A. Michelle Masters
				
	Dated:		  
				Regional Management Corp.
					
							By:		  

					
							Its:		  

  
 15Exhibit
10.1

 

Hallmark
Financial Services, Inc.

2015 Long Term Incentive Plan

 

(As Approved by Shareholders May 29,
2015)

 

		Section 1	Purpose

 

HALLMARK FINANCIAL
SERVICES, INC. (the “Corporation”) establishes this 2015 LONG TERM INCENTIVE PLAN (the “2015 LTIP”) to:

 

(a)          attract
and retain key executive and managerial employees;

 

(b)          motivate
participating employees, by means of appropriate incentives, to achieve long-range goals;

 

(c)          attract
and retain well-qualified individuals to serve as members of the Corporation's Board of Directors (the “Board”);

 

(d)          provide
incentive compensation opportunities that are competitive with those of other corporations; and

 

(e)          further
identify the interests of directors and eligible employees with those of the Corporation's other stockholders through compensation
alternatives based on the Corporation's Common Stock;

 

and thereby promote the long-term financial
interest of the Corporation, including the growth in value of the Corporation's equity and enhancement of long-term stockholder
return.

 

		Section 2	Scope

 

Awards under the 2015
LTIP may be granted in the form of (a) incentive stock options (“incentive stock options”) as provided in Section 422
of the Internal Revenue Code of 1986, as amended (the “Code”), (b) non-qualified stock options (“non-qualified
options”) (unless otherwise indicated, references in the 2015 LTIP to “options” include incentive stock options
and non-qualified options), (c) shares of the Common Stock of the Corporation (the “Common Stock”) that are restricted
as provided in Section 12 hereof (“restricted shares”), or (d) units representing the right to receive shares
of the Common Stock as provided in Section 13 hereof (“restricted stock units”). Stock appreciation rights (“rights”)
may accompany options. Rights may also be granted without accompanying options. The maximum aggregate number of shares of Common
Stock with respect to which options, restricted shares, restricted stock units, and rights granted without accompanying options
may be granted from time to time under the 2015 LTIP shall be 2,000,000 shares (subject to adjustment as described in Section 16
hereof). Shares of Common Stock with respect to which awards are granted may be, in whole or in part, authorized and unissued shares
or authorized and issued shares reacquired and held in the treasury of the Corporation, as the Board shall from time to time determine.
If for any reason (other than the surrender of options or Deemed Options (as defined in Section 9(b)) upon exercise of rights
as provided in Section 9 hereof) any shares as to which an option has been granted cease to be subject to purchase thereunder,
or any restricted shares are forfeited to the Corporation, or any shares cease to be issuable with respect to restricted stock
units, or any right issued without accompanying options terminates or expires without being exercised, then the shares in respect
of which such option or right was granted, or which relate to such restricted shares or restricted stock units, shall become available
for subsequent awards under the 2015 LTIP.

 

    	 	 

    	 	 	 

    

 

		Section 3	Effective Date

 

The 2015 LTIP shall
become effective on the calendar day immediately following the date the 2015 LTIP is approved by the stockholders of the Corporation.
If the stockholders of the Corporation approve the 2015 LTIP, it shall terminate on the tenth anniversary of its effective date.

 

		Section 4	Administration

 

(a)          The
2015 LTIP shall be administered, construed and interpreted solely by the Compensation Committee, or any successor thereto, of the
Board (the “Committee”). The Committee shall consist of two or more directors. Unless otherwise determined by the Board,
each member of the Compensation Committee shall be (i) a “non-employee director” within the meaning of Rule 16b-3
under the Securities Exchange Act of 1934, as amended (the “1934 Act”), and (ii) an “outside director”
as defined under Section 162(m) of the Code, unless administration of this Plan by “outside directors” is not
then required in order to qualify for tax deductibility under Section 162(m) of the Code.

 

(b)          Subject
to the express provisions of Rule 16b-3 promulgated under the 1934 Act and Treasury regulation §1.162-27, the Committee
shall have plenary authority in its sole discretion, and subject to the express provisions of the 2015 LTIP, to grant options,
to determine the purchase price of the Common Stock covered by each option (the “exercise price”), the term of each
option, the employees to whom, and the time or times at which, options shall be granted and the number of shares to be covered
by each option; to designate options as incentive stock options or non-qualified options and to determine which options shall be
accompanied by rights; to grant rights without accompanying options; to determine the employees to whom and the time or times at
which such rights shall be granted and the exercise price, term, and number of shares of Common Stock covered by any Deemed Option
corresponding thereto; to grant restricted shares and to determine the term of the restricted period and other conditions applicable
to such restricted shares, the employees to whom and the time or times at which restricted shares shall be granted and the number
of restricted shares to be covered by each grant; to grant restricted stock units and to determine the period of continued employment
prior to the vesting of all or any portion of the restricted stock units (the “vesting period”), any criteria pertaining
to the performance of the Corporation or any of its subsidiaries, divisions or business units which may be a condition to the issuance
of shares attributable to all or any portion of restricted stock units (“performance criteria”), and any other conditions
applicable to such restricted stock units; to determine the employees to whom and the time or times at which restricted stock units
shall be granted and the number of shares (or formula for determining the number of shares) of Common Stock to be covered by each
grant; to interpret the 2015 LTIP; to prescribe, amend and rescind rules and regulations relating to the 2015 LTIP; to determine
the terms and provisions of the option, right, restricted share and restricted stock unit agreements entered into in connection
with awards under the 2015 LTIP; to prepare and distribute in such manner as the Committee determines to be appropriate information
concerning the 2015 LTIP; and to make all other determinations deemed necessary or advisable for the administration of the 2015
LTIP. The Committee may delegate to one (1) or more of its members or to one (1) or more agents such administrative duties
as it may deem advisable, and the Committee or any person to whom it has delegated duties as aforesaid may employ one or more persons
to render advice with respect to any responsibility the Committee or such person may have under the 2015 LTIP; provided,
however, that the Committee shall not delegate its authority to construe and interpret the 2015 LTIP, to determine which
employees may participate in the 2015 LTIP, or its authority to make grants of options, restricted shares, restricted stock units
and rights or any authority which pertains to awards granted to persons subject to Section 16(b) of the 1934 Act or Section 162(m)
of the Code.

 

    	Hallmark 2015 Long Term Incentive Plan	Page 2

    	 	 	 

    

 

(c)          Subject
to the express provisions of Rule 16b-3 promulgated under the 1934 Act and Treasury regulation §1.162-27, the Committee
may adopt such rules as it deems necessary, desirable or appropriate. The Committee may act at a meeting or in writing without
a meeting. The Committee shall elect one of its members as chairman, appoint a secretary (who may or may not be a Committee member)
and advise the Board of such actions. The secretary shall keep a record of all minutes and forward all necessary communications
to the Corporation. A majority of the Committee shall constitute a quorum. All decisions of the Committee shall be made by a vote
of not less than a majority of the Committee members present at a meeting of the Committee at which a quorum is present or by a
written consent signed by all of the members of the Committee. A dissenting Committee member who, within a reasonable time after
he has knowledge of any action or failure to act in accordance with the preceding sentence, registers his dissent in writing delivered
to the other Committee members and to the Board, shall not be responsible for any such action or failure to act.

 

(d)          The
Corporation shall pay all usual and reasonable expenses of the Committee, and no member shall receive compensation with respect
to his services for the Committee except as may be authorized by the Board. The Committee may employ attorneys, consultants, accountants
or other persons, and the Committee, the Corporation and its officers and directors shall be entitled to rely upon the advice,
opinions or valuations of any such persons. All actions taken and all interpretations and determinations made by the Committee
in good faith shall be final and binding upon all employees who have received awards, the Corporation and all other interested
persons. No member of the Committee shall be personally liable for any action, determination, or interpretation taken or made in
good faith with respect to the 2015 LTIP or awards made thereunder, and the Corporation shall indemnify and hold harmless each
member of the Committee against all loss, cost, expenses or damages occasioned by any act or omission to act in connection with
any such action, determination or interpretation under or of the 2015 LTIP, consistent with the Corporation's articles of incorporation
and bylaws.

 

(e)          Subject
to such limitations or restrictions as may be imposed by the Code or other applicable law, the Committee may grant to an employee
who has been granted an award under the 2015 LTIP or any other benefit plan maintained by the Corporation or any of its subsidiaries,
or any predecessor or successor thereto, in exchange for the surrender and cancellation of such prior award, a new award with such
terms and conditions as the Committee may deem appropriate and consistent with the provisions of the 2015 LTIP.

 

    	Hallmark 2015 Long Term Incentive Plan	Page 3

    	 	 	 

    

 

(f)          At
any time that a member of the Committee is not a “qualified member,” which shall mean a member who is (i) a “non-employee
director” within the meaning of Rule 16b-3(b)(3) promulgated under the 1934 Act and (ii) an “outside director”
within the meaning of Treasury regulation §1.162-27, any action of the Committee relating to an award granted or to be granted
to an employee who is then subject to Section 16 of the 1934 Act in respect of the Corporation, or relating to an award intended
by the Committee to qualify as “performance-based compensation” within the meaning of Section 162(m) of the Code
and regulations thereunder, may be taken either (A) by a subcommittee, designated by the Committee, composed solely of two
or more qualified members, or (B) by the Committee but with each such member who is not a qualified member abstaining or recusing
himself or herself from such action; provided, however, that, upon such abstention or recusal, the Committee remains
composed solely of two or more qualified members. Such action, authorized by such a subcommittee or by the Committee upon the abstention
or recusal of such non-qualified member(s), shall be the action of the Committee for purposes of this Plan. Any action of the Committee
shall be final, conclusive and binding on all persons.

 

(g)          Notwithstanding
the powers of the Committee set forth in this Section 4, no award may be repriced, replaced, regranted through cancellation,
or modified without approval of the Corporation's stockholders (except in connection with a change in the Corporation's capitalization
as described in Section 16) if the effect would be to reduce the exercise price for the shares of Common Stock underlying
such award.

 

		Section 5	Eligibility Factors To Be Considered in Granting Awards

 

(a)          Awards
shall be granted only to persons who are employees of the Corporation or one (1) or more of its subsidiaries (as defined below)
or directors of the Corporation who are not employees of the Corporation (“non-employee directors”). In determining
the individuals to whom awards shall be granted, the number of shares of Common Stock with respect to which each award shall be
granted, and the terms and conditions of each award, the Committee shall take into account the nature of the individual's duties,
his or her present and potential contributions to the growth and success of the Corporation, and such other factors as the Committee
shall deem relevant in connection with accomplishing the purposes of the 2015 LTIP.

 

(b)          For
purposes of the 2015 LTIP, the term “subsidiary” means any corporation (other than the Corporation) or other entity
of which the Corporation owns, directly or indirectly, a majority of the voting power of the voting equity securities or equity
interest.

 

(c)          Unless
a different meaning is indicated or required by the context and except in the case of application of Section 10, the term
“employee” as used in the Plan shall include a non-employee director of the Corporation, and the term “employed”
or “employment” shall include service by a non-employee director as a member of the Board.

 

    	Hallmark 2015 Long Term Incentive Plan	Page 4

    	 	 	 

    

 

		Section 6	Option Price; Fair Market Value

 

The per share exercise
price of each option for shares of Common Stock shall be determined by the Committee, but shall not in any event be less than the
Fair Market Value per Share on the date the option is granted. For purposes of the 2015 LTIP, the term “Fair Market Value
per Share” as of any date shall mean for shares of Common Stock with respect to which restricted shares, restricted stock
units, options and rights shall be granted, the closing price of the Common Stock on such date (or if there are no sales on such
date, on the next preceding date on which there were sales), as reported on the principal consolidated transaction reporting system
for the principal national securities exchange on which the Common Stock is listed or admitted to trading, or if the Common Stock
is not listed or admitted to trading on any national securities exchange, the closing price of the Common Stock as reported on
the National Market System of the National Association of Securities Dealers, Inc Automated Quotation System (“NASDAQ”),
or if the Common Stock is not listed or admitted to trading on the NASDAQ National Market System, the last quoted sales price or,
if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by the NASDAQ System
or such other system as may then be in use, or if the Common Stock is not reported on any such system and is not listed or admitted
to trading on any national securities exchange, the average of the closing bid and asked prices as furnished by a professional
market maker making a market in the Common Stock selected by the Board, or if no such market maker is making a market in the Common
Stock, the fair value of the Common Stock as determined in good faith by the Board; provided, however, that in any
event the Fair Market Value per Share shall be appropriately adjusted to reflect events described in Section 16 hereof. The
Committee shall determine the date on which an option is granted, provided that such date is consistent with the Code and
any applicable rules or regulations thereunder. In the absence of such determination, the date on which the Committee adopts a
resolution granting an option shall be considered the date on which such option is granted, provided that the employee to
whom the option is granted is promptly notified of the grant and a written option agreement is duly executed as of the date of
the resolution. The exercise price so determined shall also be applicable in connection with the exercise of any related right.

 

		Section 7	Term of Options

 

The term of each option
granted under the 2015 LTIP shall be as the Committee shall determine, but in no event shall any option have a term of more than
10 years from the date of grant, subject to earlier termination as provided in Sections 14 and 15 hereof. If the holder
of an incentive stock option owns, at the time the incentive stock option is granted, stock of the Corporation possessing more
than 10% of the combined voting power of all classes of stock of the Corporation or any subsidiary, the term of such incentive
stock option shall not exceed five (5) years from the date of grant.

 

		Section 8	Exercise of Options

 

(a)          Subject
to the provisions of the 2015 LTIP and unless otherwise provided in the option agreement, an option granted under the 2015 LTIP
shall become 100% vested at the earliest of (i) the employee's retirement from employment at or after Retirement Age (as defined
in Section 14 hereof), or (ii) the employee's death or total and permanent disability (as defined in Section 15
hereof), or (iii) a Change in Control (as defined in Section 21 hereof). Prior to becoming 100% vested, each option shall
become exercisable in such cumulative installments and upon such events as the Committee may determine in its sole discretion.
The Committee may also, in its sole discretion, accelerate the exercisability of any option or installment thereof at any time.

 

    	Hallmark 2015 Long Term Incentive Plan	Page 5

    	 	 	 

    

 

(b)          An
option may be exercised at any time or from time to time (subject, in the case of an incentive stock option, to such restrictions
as may be imposed by the Code), as to any or all full shares of Common Stock as to which the option has become exercisable; provided,
however, that an option shall not be exercised at any time as to less than 100 shares (or less than the number of full shares
of Common Stock as to which the option is then exercisable, if that number is less than 100 shares).

 

(c)          At
the time of exercise of any option, the per share exercise price of such option shall be paid in full for each share of Common
Stock with respect to which such option is exercised. Payment may be made in cash or, with the approval of the Committee, in shares
of the Common Stock, valued at the Fair Market Value per Share on the date of exercise. An option holder may also make payment
at the time of exercise of an option, with the approval of the Committee, by delivering to the Corporation a properly executed
exercise notice together with irrevocable instructions to a broker approved by the Corporation, that upon such broker's sale of
shares with respect to which such option is exercised, it is to deliver promptly to the Corporation the amount of sale proceeds
necessary to satisfy the option exercise price and any required withholding taxes; provided, however, that the right
to facilitate an option exercise by the use of a broker transaction shall, for individuals subject to Section 16 of the 1934
Act and members of the Board, be available only to the extent allowed pursuant to the Sarbanes-Oxley Act of 2002 and applicable
rules and regulations of the Securities and Exchange Commission.

 

(d)          Upon
the exercise of an option or portion thereof in accordance with the 2015 LTIP, the option agreement and such rules and regulations
as may be established by the Committee, the holder thereof shall have the rights of a stockholder with respect to the Common Stock
issued as a result of such exercise.

 

		Section 9	Award and Exercise of Rights

 

(a)          The
Committee may grant a right as a primary right or an additional right in the manner set forth in this Section 9. A right granted
in connection with an option must be granted at the time the option is granted. Each right shall be subject to the same terms and
conditions as the related option or Deemed Option (as described in Section 9(b)) and shall be exercisable only to the extent
the option or Deemed Option is exercisable.

 

    	Hallmark 2015 Long Term Incentive Plan	Page 6

    	 	 	 

    

 

(b)          The
Committee may award a primary right either alone or in connection with any option granted under the 2015 LTIP. Each primary right
granted without a corresponding option shall nevertheless be deemed for certain purposes described in this Section 9 to have
been accompanied by an option (a “Deemed Option”). A Deemed Option shall have no value, and no shares of Common Stock
(or other consideration) shall be delivered upon exercise thereof, but such Deemed Option shall serve solely to establish the terms
and conditions of the corresponding primary right. At the time of grant of a primary right not granted in connection with an option,
the Committee shall set forth the terms and conditions of the corresponding Deemed Option. The terms and conditions of such Deemed
Option shall include all terms and conditions that at the time of grant are required, and, in the discretion of the Committee,
may include any additional terms and conditions that at such time are permitted, to be included in options granted under the 2015
LTIP. A primary right shall entitle the employee to surrender unexercised the related option or Deemed Option (or any portion or
portions thereof that the employee determines to surrender) and to receive in exchange, subject to the provisions of the 2015 LTIP
and such rules and regulations as from time to time may be established by the Committee, a payment having an aggregate value equal
to (i) the excess of (A) the Fair Market Value per Share on the exercise date over (B) the per share exercise price
of the option or Deemed Option, multiplied by (ii) the number of shares of Common Stock subject to the option, Deemed Option
or portion thereof that is surrendered. Surrender of an option or Deemed Option or portion thereof in exchange for a payment as
described in this Section is referred to as the “exercise of a primary right.” Upon exercise of a primary right, payment
shall be made in the form of cash, shares of Common Stock, or a combination thereof, as elected by the employee. Shares of Common
Stock paid upon exercise of a primary right will be valued at the Fair Market Value per Share on the exercise date. Cash will be
paid in lieu of any fractional share of Common Stock based upon the Fair Market Value per Share on the exercise date. Subject to
Section 18 hereof, no payment will be required from the employee upon exercise of a primary right.

 

(c)          The
Committee may award an additional right in connection with any option granted under the 2015 LTIP. An additional right shall entitle
the employee to receive, upon the exercise of a related option, a cash payment equal to (i) the product determined by multiplying
(A) the excess of (x) the Fair Market Value per Share on the date of exercise of the related option over (y) the
option price per share at which such option is exercisable by (B) the number of shares of Common Stock with respect to which
the related option is being exercised, multiplied by (ii) a percentage factor (which may be any percentage factor equal to
or greater than 10% and equal to or less than 100%) as determined by the Committee at the time of the grant of such additional
right or as determined in accordance with a formula for determination of such percentage factor established by the Committee at
the time of the grant of such additional right. If the Committee specifies no other percentage factor or formula at the time of
grant of such additional right, the percentage factor shall be deemed to be 100%. The Committee at any time, or from time to time,
after the time of grant may in its discretion increase such percentage factor (or amend such formula so as to increase such factor)
to not more than 100%.

 

(d)          Upon
exercise of a primary right, the number of shares of Common Stock subject to exercise under the related option or Deemed Option
shall automatically be reduced by the number of shares of Common Stock represented by the option, Deemed Option or portion thereof
surrendered. Shares of Common Stock subject to options, Deemed Options or portions thereof surrendered upon the exercise of rights
shall not be available for subsequent awards under the 2015 LTIP.

 

(e)          If
neither the right nor, in the case of a right (whether primary or additional) with a related option, the related option is exercised
before the end of the day on which the right ceases to be exercisable, such right shall be deemed exercised as of such date and,
subject to Section 18 hereof, a payment in the amount prescribed by Section 9(b) or Section 9(c), as the case may
be, shall be paid to the employee in cash.

 

    	Hallmark 2015 Long Term Incentive Plan	Page 7

    	 	 	 

    

 

		Section 10	Incentive Stock Options

 

(a)          The
Committee shall designate the employees to whom incentive stock options, as described in Section 422 of the Code or any successor
section thereto, are to be awarded under the 2015 LTIP and shall determine the number of shares of Common Stock to be covered by
each incentive stock option. Incentive stock options shall be awarded only to employees of the Corporation or of its corporate
subsidiaries, and non-employee directors shall not be eligible to receive awards of incentive stock options. In no event shall
the aggregate Fair Market Value Per Share of all Common Stock (determined at the time the option is awarded) with respect to which
incentive stock options are exercisable for the first time by an individual during any calendar year (under all plans of the Corporation
and its subsidiaries) exceed $100,000.

 

(b)          The
purchase price of a share of Common Stock under each incentive stock option shall be determined by the Committee; provided,
however, that in no event shall such price be less than 100% of the Fair Market Value Per Share as of the date of grant
(or 110% of such Fair Market Value Per Share if the holder of the incentive stock option owns stock of the Corporation possessing
more than 10% of the combined voting power of all classes of stock of the Corporation or any subsidiary).

 

(c)          Except
as provided in Sections 14 and 15 hereof, no incentive stock option shall be exercised at any time unless the holder thereof
is then an employee of the Corporation or one of its subsidiaries. For this purpose, “subsidiary” shall include an
entity that becomes a subsidiary after the grant of an incentive stock option and which subsequently employs the grantee as long
as the grantee was, from the date of grant of the incentive stock option until the date of transfer to the new subsidiary, an employee
of either the Corporation or a subsidiary of the Corporation.

 

(d)          In
the event of amendments to the Code or applicable rules or regulations relating to incentive stock options subsequent to the date
hereof, the Corporation shall amend the provisions of the 2015 LTIP, and the Corporation and the employees holding such incentive
stock options shall agree to amend outstanding option agreements to conform to such amendments.

 

		Section 11	Transferability of Awards

 

(a)          The
Committee may, in its discretion, permit a holder of an award, other than an incentive stock option, to transfer all or any portion
of the award, or authorize all or a portion of such award granted to be on terms which permit transfer by such holder; provided
that, in either case, the transferee or transferees must be any child, stepchild, grandchild, parent, stepparent, grandparent,
spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law,
including adoptive relationships, in each case with respect to the original holder of the award (the “original holder”),
any person sharing the original holder's household (other than a tenant or employee of the Corporation), a trust in which these
persons have more than fifty percent of the beneficial interest, a foundation in which these persons (or the original holder) control
the management of assets, or any other entity in which these persons (or the original holder) own more than fifty percent of the
voting interests (collectively, “permitted transferees”); provided further that, (i) there may be
no consideration for any such transfer and (ii) subsequent transfers of awards transferred as provided above shall be prohibited
except subsequent transfers back to the original holder and transfers to other permitted transferees of the original holder.

 

    	Hallmark 2015 Long Term Incentive Plan	Page 8

    	 	 	 

    

 

(b)          An
award may, in the Committee's discretion, be transferred to a permitted transferee, pursuant to a domestic relations order entered
or approved by a court of competent jurisdiction only upon delivery to the Corporation of written notice of such transfer and a
certified copy of such order.

 

(c)          Notwithstanding
anything to the contrary in this Section 11, an incentive stock option shall not be transferable other than by will or the
laws of descent and distribution. Except as expressly permitted by Section 11(a) and Section 11(b), awards shall not
be transferable other than by will or the laws of descent and distribution.

 

(d)          Following
the transfer of any award as contemplated by this Section 11, such award shall continue to be subject to the same terms and
conditions as were applicable immediately prior to transfer, provided that the provisions of the award relating to exercisability
shall continue to be applied with respect to the original holder and, following the occurrence of any such events described therein,
the award shall be exercisable by the permitted transferee, the recipient under a qualified domestic relations order, the estate
or heirs of a deceased award holder, or other transferee, as applicable, only to the extent and for the periods that would have
been applicable in the absence of the transfer.

 

(e)          Any
award holder desiring to transfer an award as permitted under this Section 11 shall make application therefor in the manner
and time specified by the Committee and shall comply with such other requirements as the Committee may require to assure compliance
with all applicable securities laws. The Committee shall not give permission for such a transfer if it may not be made in compliance
with all applicable federal, state and foreign securities laws.

 

(f)          To
the extent the issuance to any permitted transferee of any shares of Common Stock issuable pursuant to awards transferred as permitted
in this Section 11 is not registered pursuant to an effective registration statement of the Corporation generally covering
the shares to be issued pursuant to the 2015 LTIP, the Corporation shall not have any obligation to register the issuance of any
such shares of Common Stock to any such transferee.

 

		Section 12	Award and Delivery of Restricted Shares

 

(a)          At
the time an award of restricted shares is made, the Committee shall establish a period or periods of time (each a “Restricted
Period”) applicable to such award that shall not be more than 10 years. Each award of restricted shares may have a different
Restricted Period or Restricted Periods. The Committee may, in its sole discretion, at the time an award is made, provide for the
incremental lapse of Restricted Periods with respect to a portion or portions of the restricted shares awarded, and for the lapse
or termination of restrictions upon all or any portion of the restricted shares upon the satisfaction of other conditions in addition
to or other than the expiration of the applicable Restricted Period. The Committee may also, in its sole discretion, shorten or
terminate a Restricted Period or waive any conditions for the lapse or termination of restrictions with respect to all or any portion
of the restricted shares. Notwithstanding the foregoing, all restrictions shall lapse or terminate with respect to all restricted
shares upon the earliest of (i) the employee's retirement from employment at or after Retirement Age (as defined in Section 14
hereof), or (ii) the employee's death or total and permanent disability (as defined in Section 15 hereof), or (iii) a
Change in Control (as defined in Section 21 hereof).

 

    	Hallmark 2015 Long Term Incentive Plan	Page 9

    	 	 	 

    

 

(b)          At
the time a grant of restricted shares is made to an employee, a stock certificate representing a number of shares of Common Stock
equal to the number of such restricted shares shall be registered in the employee's name but shall be held in custody by the Corporation
for such employee's account. The employee shall generally have the rights and privileges of a stockholder as to such restricted
shares, including, without limitation, the right to vote such restricted shares, except that, subject to the earlier lapse or termination
of restrictions as herein provided, the following restrictions shall apply: (i) the employee shall not be entitled to delivery
of the stock certificate evidencing restricted shares until the expiration or termination of the Restricted Period applicable to
such shares and the satisfaction of any other conditions prescribed by the Committee; (ii) none of the shares then subject
to a Restricted Period shall be sold, transferred, assigned, pledged, or otherwise encumbered or disposed of during the Restricted
Period applicable to such shares and until the satisfaction of any other conditions prescribed by the Committee; and (iii) all
of the shares then subject to a Restricted Period shall be forfeited and all rights of the employee to such restricted shares shall
terminate without further obligation on the part of the Corporation if the employee ceases to be an employee of the Corporation
or any of its subsidiaries before the expiration or termination of such Restricted Period and the satisfaction of any other conditions
prescribed by the Committee applicable to such restricted shares. Dividends in respect of restricted shares shall be currently
paid; provided, however, that in lieu of paying currently a dividend of shares of Common Stock in respect of restricted
shares, the Committee may, in its sole discretion, register in the name of an employee a stock certificate representing such shares
of Common Stock issued as a dividend in respect of restricted shares, and may cause the Corporation to hold such certificate in
custody for the employee's account subject to the same terms and conditions as such restricted shares. Upon the forfeiture of any
restricted shares, such forfeited restricted shares shall transfer to the Corporation without further action by the employee. The
employee shall have the same rights and privileges, and be subject to the same restrictions, with respect to any shares received
pursuant to Section 16 hereof.

 

(c)          Upon
the expiration or termination of the Restricted Period applicable to such shares and the satisfaction of any other conditions prescribed
by the Committee or at such earlier time as provided for herein, the restrictions applicable to the shares subject to such Restricted
Period shall lapse and a certificate for a number of shares of Common Stock equal to the number of restricted shares with respect
to which the restrictions have expired or terminated shall be delivered, free of all such restrictions, except any that may be
imposed by law, to the employee or the employee's Beneficiary (as defined below). The Corporation shall not be required to deliver
any fractional share of Common Stock but shall pay to the employee or the employee's Beneficiary, in lieu thereof, the product
of (i) the Fair Market Value per Share (determined as of the date the restrictions expire or terminate), and (ii) the
fraction of a share to which such employee would otherwise be entitled. Subject to Section 18 hereof, no payment will be required
from the employee upon the issuance or delivery of any Common Stock upon the expiration or termination of a Restricted Period with
respect to restricted shares. An employee's “Beneficiary” is a person or persons (natural or otherwise) designated
by such employee, pursuant to a written instrument executed by such employee and filed with the Committee, to receive any benefits
payable hereunder in the event of such employee's death.

 

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		Section 13	Award of Restricted Stock Units

 

(a)          The
Committee may make grants of restricted stock units to employees and in each case shall establish as to each award the vesting
period, performance criteria (if any) and other terms and conditions to which the restricted stock units are subject. A restricted
stock unit shall entitle an employee to receive from the Corporation a share of Common Stock, in all events subject to the vesting
period, performance criteria (if any) and other terms and conditions of the award.

 

(b)          Restricted
stock unit awards shall be subject to a minimum vesting period of twelve consecutive months; provided the Committee may
provide for accelerated vesting upon (i) the employee's retirement from employment at or after Retirement Age (as defined
in Section 14 hereof), or (ii) the employee's death or total and permanent disability (as defined in Section 15
hereof), or (iii) a Change in Control (as defined in Section 21 hereof). The Committee may also, in its sole discretion,
accelerate the vesting of any restricted stock unit at any time.

 

(c)          Restricted
stock unit awards may be granted so as to qualify for the performance-based exception under Code Section 162(m).

 

		Section 14	Termination of Employment

 

(a)          Unless
otherwise determined by the Committee, in the event that the employment of an employee to whom an option or right has been granted
under the 2015 LTIP shall be terminated (except as set forth in Section 15 hereof), such option or right may, subject to the
provisions of the 2015 LTIP, be exercised (to the extent that the employee was entitled to do so at the termination of his employment)
at any time within three (3) months after such termination or, in the case of a non-employee director who ceases to serve
as a member of the Board or an employee whose termination results from retirement from employment at or after the attainment of
age 65 (the “Retirement Age”), within five (5) years after such cessation of service or termination, but in no
event later than the date on which the option or right expires; provided, however, that, unless otherwise determined
by the Committee, any option or right held by an employee whose employment is terminated for cause (as determined by the Board
in its sole discretion) or an employee who leaves the employ of the Corporation voluntarily shall, to the extent not theretofore
exercised, terminate upon the date of termination of employment; and provided further, that (except as set forth in Section 15
hereof) no incentive stock option may be exercised more than three (3) months after the employee's termination of employment.

 

(b)          Unless
otherwise determined by the Committee, if an employee to whom restricted shares have been granted ceases to be an employee of the
Corporation or of a subsidiary prior to the end of the Restricted Period applicable to such shares and the satisfaction of any
other conditions prescribed by the Committee for any reason other than death, total and permanent disability (as defined in Section 15
hereof), or retirement from employment at or after the Retirement Age, the employee shall immediately forfeit all shares then subject
to such Restricted Period.

 

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(c)          Unless
otherwise determined by the Committee, if an employee to whom restricted stock units have been awarded ceases to be an employee
of the Corporation or of a subsidiary prior to vesting of all such restricted stock units and the satisfaction of any other conditions
prescribed by the Committee for any reason other than death, total and permanent disability (as defined in Section 15 hereof),
or retirement from employment at or after the Retirement Age, the employee shall immediately forfeit all unvested restricted stock
units.

 

(d)          Awards
granted under the 2015 LTIP shall not be affected by any change of duties or position so long as the holder continues to be an
employee of the Corporation or any subsidiary thereof. Any option, right, restricted share or restricted stock unit agreement,
and any rules and regulations relating to the 2015 LTIP, may contain such provisions as the Committee shall approve with reference
to the determination of the date employment terminates and the effect of leaves of absence. Any such rules and regulations with
reference to any award agreement shall be consistent with the provisions of the Code and any applicable rules and regulations thereunder.
Nothing in the 2015 LTIP or in any award granted pursuant to the 2015 LTIP shall confer upon any employee any right to continue
in the employ of the Corporation or any subsidiary or interfere in any way with the right of the Corporation or any subsidiary
to terminate such employment at any time.

 

		Section 15	Death or Total and Permanent Disability of Employee

 

If an employee to whom
an option or right has been granted under the 2015 LTIP shall die or suffer a total and permanent disability while employed by
the Corporation or a subsidiary, such option or right may be exercised, to the extent that the employee was entitled to do so at
the termination of employment (including by reason of death or total and permanent disability), as set forth herein by the employee,
legal guardian of the employee (unless such exercise would disqualify an option as an incentive stock option), a legatee or legatees
of the employee under the employee's last will, or by the employee's personal representatives or distributees, whichever is applicable,
at any time within one (1) year after the date of the employee's death or total and permanent disability, but in no event
later than the date on which the option or right terminates. Notwithstanding the above, if an employee who terminates employment
by reason of total and permanent disability shall die, a legatee or legatees of such employee under the employee's last will, or
the executor of such employee's estate, shall only have the right to exercise such option or right, to the extent that the employee
was entitled to do so at the termination of employment, during the period ending one (1) year after the date of the employee's
termination of employment by reason of total and permanent disability. For purposes hereof, “total and permanent disability”
shall have the meaning set forth in the Corporation's long-term disability policy.

 

		Section 16	Adjustments upon Changes in Capitalization, etc.

 

Notwithstanding any
other provision of the 2015 LTIP, the Committee shall adjust the 2015 LTIP, the number and class of shares available thereunder
and any outstanding options, rights, restricted shares or restricted stock units to prevent material dilution or enlargement, including
adjustments in the event of changes in the outstanding Common Stock by reason of stock dividends, split-ups, recapitalizations,
mergers, consolidations, combinations or exchanges of shares, separations, reorganizations, liquidations and the like. In the event
of any offer to holders of Common Stock generally relating to the acquisition of their shares, the Committee may make such adjustment
as it deems equitable in respect to outstanding options, rights, restricted shares and restricted stock units including, in the
Committee's discretion, revision of outstanding options, rights, restricted shares and restricted stock units so that they may
be exercisable or redeemable for or payable in the consideration payable in the acquisition transaction. Any such determination
by the Committee shall be conclusive. Any fractional shares resulting from such adjustments to options, rights, restricted shares
or restricted stock units shall be eliminated.

 

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		Section 17	Termination and Amendment

 

The Board shall have
the right to amend, suspend or terminate the 2015 LTIP at any time; provided, however, that an amendment shall be
subject to stockholder approval if such approval is required to comply with the Code, the rules of any securities exchange or market
system on which securities of the Company are listed or admitted to trading at the time such amendment is adopted or any other
applicable laws. The Board may delegate to the Committee all or any portion of its authority under this Section 17. If the
2015 LTIP is terminated, the terms of the 2015 LTIP shall, notwithstanding such termination, continue to apply to awards granted
prior to such termination. In addition, except in the case of adjustments made pursuant to Section 16 hereof, no suspension,
termination, modification or amendment of the 2015 LTIP may, without the consent of the employee to whom an award shall theretofore
have been granted, adversely affect the rights of such employee under such award.

 

		Section 18	Withholding Tax

 

(a)          The
Corporation shall have the right to deduct from all amounts paid in cash under the 2015 LTIP in consequence of the exercise of
an option or right any taxes required by law to be withheld with respect to such cash payments. Where an employee or other person
is entitled to receive shares of Common Stock pursuant to the exercise of an option or a right pursuant to the 2015 LTIP, or the
vesting of a restricted stock unit, the Corporation shall have the right to require the employee or such other person to pay to
the Corporation the amount of any taxes that the Corporation is required to withhold with respect to such shares or, in lieu thereof,
to retain, or sell without notice, a sufficient number of such shares to cover the amount required to be withheld. Upon the disposition
(within the meaning of Section 424(c) of the Code) of shares of Common Stock acquired pursuant to the exercise of an incentive
stock option prior to the expiration of the holding period requirements of Section 422(a)(1) of the Code, the employee shall
be required to give notice to the Corporation of such disposition and the Corporation shall have the right to require the payment
of the amount of any taxes that are required by law to be withheld with respect to such disposition.

 

(b)          Upon
termination of the Restricted Period with respect to any restricted shares (or such earlier time, if any, as an election is made
by the employee under Section 83(b) of the Code, or any successor provisions thereto, to include the value of such shares
in taxable income), the Corporation shall have the right to require the employee or other person receiving shares of Common Stock
in respect of such restricted shares to pay to the Corporation the amount of taxes that the Corporation is required to withhold
with respect to such shares of Common Stock or, in lieu thereof, to retain or sell without notice a sufficient number of shares
of Common Stock held by it to cover the amount required to be withheld. The Corporation shall have the right to deduct from all
dividends paid with respect to restricted shares the amount of taxes that the Corporation is required to withhold with respect
to such dividend payments.

 

    	Hallmark 2015 Long Term Incentive Plan	Page 13

    	 	 	 

    

 

		Section 19	Written Agreements

 

Each award of options,
rights, restricted shares or restricted stock units shall be evidenced by a written agreement, executed by the employee and the
Corporation, which shall contain such restrictions, terms and conditions as the Committee may require.

 

		Section 20	Effect on Other Stock Plans

 

The adoption of the
2015 LTIP shall have no effect on awards made or to be made pursuant to other plans covering employees of the Corporation or its
subsidiaries, or any predecessors or successors thereto.

 

		Section 21	Change in Control

 

(a)          For
purposes of this 2015 LTIP, the phrase “Change in Control” means a change in ownership or control of the Corporation
effected through any of the following means:

 

(i)          a
merger or consolidation of the Corporation with or into another entity, or the exchange of securities (other than a merger or consolidation)
by the holders of the voting securities of the Corporation and the holders of voting securities of any other entity, in either
case in which the stockholders of the Corporation immediately before the transaction do not own 50% or more of the combined voting
power of the voting securities of the surviving entity or its parent immediately after the transaction;

 

(ii)         any
merger in which the Corporation is the surviving entity but in which securities possessing more than 50% of the total combined
voting power of the Corporation's outstanding securities are transferred to a person or persons different from the persons holding
those securities immediately prior to such merger;

 

(iii)        the
sale, transfer or other disposition of all or substantially all of the assets of the Corporation in complete liquidation or dissolution
of the Corporation;

 

(iv)        the
acquisition, at any time after the date hereof, by any “person” or “group” of “beneficial ownership”
(as each such term is used in Regulation 13D promulgated under the 1934 Act) of securities possessing more than 50% of the
total combined voting power of the Corporation's outstanding securities pursuant to a tender or exchange offer made to the Corporation's
stockholders the acceptance of which the Board has not recommended; or

 

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(v)         a
change in the composition of the Board such that individuals who on the day immediately following the effective date of the 2015
LTIP (the “Determination Date”) constitute the members of the Board and any new director, whose election to the Board
or nomination for election to the Board by the Corporation's stockholders was approved by a vote of at least a majority of the
directors then in office who either were directors at the Determination Date or whose election or nomination for election was previously
so approved, cease for any reason to constitute at least a majority of the Board.

 

(b)          Upon
the occurrence of a Change in Control, with respect only to awards held by individuals who are employees or directors of the Corporation
(and their permitted transferees pursuant to Section 11) at the occurrence of the Change in Control, (i) all outstanding
rights and options shall immediately become fully vested and exercisable in full, including that portion of any right or option
that pursuant to the terms and provisions of the applicable award agreement had not yet become exercisable (the total number of
shares of Common Stock to which a right or an option relates is referred to herein as the “Total Shares”); (ii) the
Restricted Period of any restricted shares shall immediately be accelerated and the restrictions shall expire; and (iii) all restricted
stock units shall immediately be fully vested. Nothing in this Section 21(b) shall impose on a holder the obligation to exercise
any award immediately before or upon the Change of Control, nor shall the holder forfeit the right to exercise the award during
the remainder of the original term of the award because of a Change in Control or because the holder's employment is terminated
for any reason following a Change in Control.

 

(c)          The
Corporation shall attempt to keep all holders informed with respect to any Change in Control to the same extent that the Corporation
informs its stockholders of any such event.

 

		Section 22	Headings

 

Headings in this 2015
LTIP are inserted for convenience only and are not to be considered in the construction of the provisions hereof.

 

    	Hallmark 2015 Long Term Incentive Plan	Page 15

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