Document:

Guaranty Agreement

 Exhibit 10.4 
 GUARANTY AGREEMENT 
 THIS GUARANTY AGREEMENT (this
“Guaranty Agreement”) is executed as of May 8, 2012, by ENCORE CAPITAL GROUP, INC., a Delaware corporation (together with such Person’s permitted successors and permitted assigns, being hereinafter referred
to as “Guarantor”), in favor of TEXAS CAPITAL BANK, NATIONAL ASSOCIATION, a national banking association, as Administrative Agent for the Banks described in the Credit Agreement (together with its successors and
assigns, being hereinafter referred to as “Agent”). 
 INTRODUCTORY PROVISIONS: 

A. Borrower may, from time to time, be indebted to Agent and the Banks pursuant to that certain Credit Facility Loan
Agreement dated of even date herewith (as modified, amended, renewed, extended, and restated from time to time, the “Credit Agreement”), by and among Borrower, Agent and the Banks described therein. 

B. It is expressly understood among Borrower, Guarantor, and Agent that the execution and delivery of this Guaranty
Agreement is a condition precedent to the obligations of Agent and the Banks to make loans or extend credit under the Credit Agreement and is an integral part of the transactions contemplated thereby. 

C. Guarantor is the sole member of Borrower and the value of the consideration and benefit received and to be received by
Guarantor, directly or indirectly, as a result of the extension of credit by Agent and the Banks to Borrower is a substantial and direct benefit to Guarantor. 
 D. Borrower may from time to time enter into a Hedge Agreement with Texas Capital Bank, National Association, or an affiliate thereof. 

NOW, THEREFORE, for valuable consideration, the receipt and adequacy of which are hereby acknowledged, Guarantor hereby
guarantees to Agent the prompt payment and performance of the Guaranteed Obligations, this Guaranty Agreement being upon the following terms and conditions: 
 1. Definitions. Any capitalized term used in this Guaranty Agreement and not otherwise defined herein shall have the meaning ascribed to such term in the Credit Agreement. In addition, the
following terms have the following meanings: 
 “Banks” means the Banks described in the
Credit Agreement, and their respective successors and assigns. 
 “Borrower” means
PROPEL FINANCIAL SERVICES, LLC, a Texas limited liability company, and without limitation, Borrower’s successors and assigns (regardless of whether such successor or assign is formed by or results from any merger, consolidation,
conversion, sale or transfer of assets, reorganization, or otherwise) including Borrower as a debtor-in-possession, and any receiver, trustee, liquidator, conservator, custodian, or similar party hereafter appointed for Borrower or all or
substantially all of its assets pursuant to any liquidation, conservatorship, 

 
bankruptcy, moratorium, rearrangement, receivership, insolvency, reorganization, or similar Debtor Relief Laws from time to time in effect. 

“Debtor Relief Laws” means Title 11 of the United States Code, as now or hereafter in effect, or
any other applicable law, domestic or foreign, as now or hereafter in effect, relating to bankruptcy, insolvency, liquidation, receivership, reorganization, arrangement or composition, extension or adjustment of debts, or similar laws affecting the
rights of creditors. 
 “Dispute” means any action, dispute, claim or controversy of any
kind, whether in contract or tort, statutory or common law, legal or equitable, now existing or hereafter arising under or in connection with, or in any way pertaining to, this Guaranty Agreement and each other document, contract and instrument
required hereby or now or hereafter delivered to Agent or any of the Banks in connection herewith, or any past, present or future extensions of credit and other activities, transactions or obligations of any kind related directly or indirectly to
any of the foregoing documents, including, without limitation, any of the foregoing arising in connection with the exercise of any self-help, ancillary or other remedies pursuant to any of the foregoing documents. 

“Guaranteed Indebtedness” means (a) the Notes and all other indebtedness, obligations and
liabilities of Borrower to Agent or any of the Banks under or pursuant to the Credit Agreement or any of the Loan Documents (as hereinafter defined), now existing or hereafter arising, whether direct, indirect, related, unrelated, fixed, contingent,
liquidated, unliquidated, joint, several or joint and several, (b) all accrued but unpaid interest on any of the indebtedness described in (a) above, and including any and all pre-and post-maturity interest thereon, including, without
limitation, post-petition interest and expenses (including attorneys’ fees), if Borrower is the debtor in a bankruptcy proceeding under the Debtor Relief Laws, whether or not allowed under any Debtor Relief Law, (c) all obligations of
Borrower to Agent or any of the Banks under any documents evidencing, securing, governing and/or pertaining to all or any part of the indebtedness described in (a) and (b) above (collectively, the “Loan Documents,”
which shall include this Guaranty Agreement), (d) all costs and expenses incurred by Agent or any of the Banks in connection with the collection and administration of all or any part of the indebtedness and obligations described in (a),
(b) and (c) above or the protection or preservation of, or realization upon, the collateral securing all or any part of such indebtedness and obligations, including, without limitation, all reasonable attorneys’ fees, and (e) all
renewals, extensions, modifications and rearrangements of the indebtedness and obligations described in (a), (b), (c) and (d) above. 
 “Guaranteed Obligations” means the Guaranteed Indebtedness and the Guaranteed Performance Obligations. 

“Guaranteed Performance Obligations” means all of the obligations of Borrower and Guarantor under
the Loan Documents other than an obligation to pay money. 
 “Hedge Agreement” means
(a) any and all interest rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond
price or bond index swaps or options or forward bond or forward bond price or forward bond index 

  
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transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to
any master agreement, (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives
Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules and annexes, a “Master Agreement”) and (c) any and all
Master Agreements and any and all related confirmations. 
 “Notes” means collectively the following
Revolving Promissory Notes as such may be amended, increased, restated, renewed, and extended from time to time: 
  

	 	(a)	 Revolving Promissory Note of even date herewith in the original principal amount of $35,000,000.00 executed by Borrower and payable to the order of
Texas Capital Bank, National Association, a national banking association; 

  

	 	(b)	 Revolving Promissory Note of even date herewith in the original principal amount of $30,000,000.00 executed by Borrower and payable to the order of
Amegy Ban National Association, a national banking association; 

  

	 	(c)	 Revolving Promissory Note of even date herewith in the original principal amount of $30,000,000.00 executed by Borrower and payable to the order of
BOKF, National Association, a national banking association; 

  

	 	(d)	 Revolving Promissory Note of even date herewith in the original principal amount of $27,500,000.00 executed by Borrower and payable to the order of
City Bank, a Texas banking association; 

  

	 	(e)	 Revolving Promissory Note of even date herewith in the original principal amount of $22,500,000.00 executed by Borrower and payable to the order of
Lone Star National Bank, a national banking association; and 

  

	 	(f)	 Revolving Promissory Note of even date herewith in the original principal amount of $15,000,000.00 executed by Borrower and payable to the order of
Green Bank, N.A., a national banking association. 

 2. Payment. Guarantor hereby
unconditionally and irrevocably guarantees to Agent for the benefit of the Banks, as a guaranty of payment and not merely as a guaranty of collection, prompt payment when due, whether at stated maturity, by required prepayment, by lapse of time, by
acceleration of maturity, demand or otherwise, and at all times thereafter, of the Guaranteed Indebtedness. This Guaranty Agreement covers the Guaranteed Indebtedness, whether presently outstanding or arising subsequent to the date hereof, including
all amounts advanced by Agent or any of the Banks in stages or installments. The guaranty of Guarantor as set forth in this Section 2 is a continuing guaranty of payment and not a guaranty of collection. Guarantor acknowledges and
agrees that Guarantor may be required to pay and perform the Guaranteed Indebtedness in full without assistance or support from Borrower or any other party. Guarantor agrees that if all or any part of the Guaranteed Indebtedness shall not be
punctually paid when due, whether on the scheduled payment date, by lapse of time, by acceleration of maturity or otherwise, Guarantor shall, immediately upon demand by Agent, pay the amount due on the Guaranteed Indebtedness to Agent at
Agent’s address as set forth in the Credit Agreement. Any such demand may be made at any time coincident with or after the time for payment of all or part of the Guaranteed Indebtedness, and may be made from time to time with respect to the
same or 

  
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different items of Guaranteed Indebtedness. Any such demand shall be made, given and received in accordance with the notice provisions in Section 21 hereof. 

3. Performance. Guarantor hereby unconditionally and irrevocably guarantees to Agent for the benefit of the Banks
the timely performance of the Guaranteed Performance Obligations, and not merely as a guaranty of collection. If any of the Guaranteed Performance Obligations of Borrower are not satisfied or complied with in any respect whatsoever, and without the
necessity of any notice from Agent or any of the Banks to Guarantor, Guarantor agrees to indemnify and hold Agent and the Banks harmless from any and all loss, cost, liability or expense that Agent or any of the Banks may suffer by any reason of any
such non-performance or non-compliance. The obligations and liability of Guarantor under this Section 3 shall not be limited or restricted by the existence of, or any terms of, the guaranty of payment under
Section 2 of this Guaranty Agreement. 
 4. Primary Liability of Guarantor. 

(a) This Guaranty Agreement is an absolute, irrevocable and unconditional guaranty of payment and
performance. Guarantor is and shall be liable for the payment and performance of the Guaranteed Obligations, as set forth in this Guaranty Agreement, as a primary obligor. 

(b) In the event of default in payment or performance of the Guaranteed Obligations, or any part thereof,
when such Guaranteed Obligations become due, whether by its terms, by acceleration, or otherwise, Guarantor shall promptly pay the amount due thereon to Agent without notice or demand of any kind or nature, in lawful money of the United States of
America or perform the obligations to be performed hereunder, and it shall not be necessary for Agent or any of the Banks in order to enforce such payment and performance by Guarantor first, or contemporaneously, to institute suit or exhaust
remedies against Borrower or any other Person liable on the Guaranteed Obligations, or to enforce any rights, remedies, powers, privileges or benefits of Agent or the Banks against any collateral or any other security or collateral which shall ever
have been given to secure the Guaranteed Obligations. 
 (c) Suit may be brought or demand may be
made against Guarantor or any other guaranty covering all or any part of the Guaranteed Obligations, or against any one or more of them, separately or together, without impairing the rights of Agent against Guarantor. Any time that Agent is entitled
to exercise its rights or remedies hereunder, Agent may in its sole discretion elect to demand payment and/or performance. If Agent elects to demand performance, then it shall at all times thereafter have the right to demand payment until all of the
Guaranteed Obligations have been paid and performed in full (other than contingent indemnification obligations for which claims have not been asserted. If Agent elects to demand payment, then it shall at all times thereafter have the right to demand
performance until all of the Guaranteed Obligations have been paid and performed in full (other than contingent indemnification obligations for which claims have not been asserted). 

5. Other Guaranteed Obligations. If Guarantor becomes liable for any indebtedness owing by Borrower to Agent or
any of the Banks, other than under this Guaranty Agreement, such liability shall not in any manner be impaired or affected hereby, and the rights 

  
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and remedies hereunder shall be cumulative of any and all other rights and remedies that Agent or any of the Banks may ever have against Guarantor. The exercise by Agent or any of the Banks of
any right or remedy hereunder or under any other instrument, or at law or in equity, shall not preclude the concurrent or subsequent exercise of any other right or remedy by Agent or any of the Banks. 

6. Waiver of Subrogation. Notwithstanding anything to the contrary contained herein, until the Guaranteed
Obligations and any amounts payable under this Guaranty Agreement have been indefeasibly paid and performed in full (other than contingent indemnification obligations for which claims have not been asserted) and any commitments of Agent and the
Banks with respect to the Guaranteed Obligations are terminated, Guarantor waives to the extent permitted by applicable law any right of subrogation, reimbursement, indemnification or contribution arising from the existence or performance of this
Guaranty Agreement or any of the Loan Documents. This waiver is given to induce Agent and the Banks to make the Loan to Borrower. 
 7. Subordinated Debt. All indebtedness, liabilities, and obligations of Borrower or its Affiliates to Guarantor (the “Subordinated Debt”) now or hereafter existing, due or
to become due to Guarantor, or held or to be held by Guarantor, whether created directly or acquired by assignment or otherwise, and whether evidenced by written instrument or not, shall be expressly subordinated to the Guaranteed Obligations. Until
such time as the Guaranteed Obligations are paid and performed in full (other than contingent indemnification obligations for which claims have not been asserted) and all commitments to lend under the Loan Documents have terminated, Guarantor agrees
not to receive or accept any payment from Borrower with respect to the Subordinated Debt at any time an Event of Default exists before or after giving effect thereto; and, in the event Guarantor receives any payment on the Subordinated Debt in
violation of the foregoing, Guarantor will hold any such payment in trust for Agent and forthwith turn it over to Agent in the form received, to be applied to the Guaranteed Obligations, but without reducing or affecting in any manner the liability
of the Guarantor under this Guaranty Agreement. 
 8. Obligations Not to be Diminished. Guarantor hereby
agrees that its obligations under this Guaranty Agreement shall not be released, discharged, diminished, impaired, reduced, or affected for any reason or by the occurrence of any event, including, without limitation, one or more of the following
events, whether or not with notice to or the consent of Guarantor: (a) the taking or accepting of collateral as security for any or all of the Guaranteed Obligations or the release, surrender, exchange, or subordination of any collateral now or
hereafter securing any or all of the Guaranteed Obligations; (b) any partial release of the liability of Borrower or the full or partial release of any other guarantor or obligor from liability for any or all of the Guaranteed Obligations;
(c) any disability of Borrower, or the dissolution, insolvency, or bankruptcy of Borrower, any other guarantor, or any other party at any time liable for the payment of any or all of the Guaranteed Obligations; (d) any renewal, extension,
modification, waiver, amendment, or rearrangement of any or all of the Guaranteed Obligations or any instrument, document, or agreement evidencing, securing, or otherwise relating to any or all of the Guaranteed Obligations; (e) any adjustment,
indulgence, forbearance, waiver, or compromise that may be granted or given by Agent to Borrower, Guarantor, or any other party ever liable for any or all of the Guaranteed Obligations; (f) any neglect, delay, omission, failure, or refusal of
Agent to take or prosecute any action for the collection of any of the Guaranteed Obligations or to foreclose or take or prosecute any action in connection with any instrument, document, or agreement

  
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evidencing, securing, or otherwise relating to any or all of the Guaranteed Obligations; (g) the unenforceability or invalidity of any or all of the Guaranteed Obligations or of any
instrument, document, or agreement evidencing, securing, or otherwise relating to any or all of the Guaranteed Obligations; (h) any payment by Borrower or any other party to Agent is held to constitute a preference under applicable bankruptcy
or insolvency law or if for any other reason Agent is required to refund any payment or pay the amount thereof to someone else; (i) the settlement or compromise of any of the Guaranteed Obligations; (j) the non-perfection of any security
interest or Lien securing any or all of the Guaranteed Obligations; (k) any impairment of any collateral securing any or all of the Guaranteed Obligations; (l) the failure of Agent to sell any collateral securing any or all of the
Guaranteed Obligations in a commercially reasonable manner or as otherwise required by law; (m) any change in the corporate, partnership, or limited liability company, as applicable, existence, structure, or ownership of Borrower; or
(n) any other circumstance which might otherwise constitute a defense available to, or discharge of, Borrower or Guarantor. 
 9. Waivers. Guarantor waives for the benefit of Agent: (a) any right to revoke this Guaranty Agreement with respect to future indebtedness; (b) any right to require Agent to do any of the
following before Guarantor is obligated to pay the Guaranteed Obligations or before Agent may proceed against Guarantor: (i) sue or exhaust remedies against Borrower or any other guarantors or obligors; (ii) sue on an accrued right of
action in respect of any of the Guaranteed Obligations or bring any other action, exercise any other right, or exhaust all other remedies or (iii) enforce rights against Borrower’s assets or any collateral pledged by Borrower to secure the
Guaranteed Obligations; (c) any right relating to the timing, manner, or conduct of Agent’s enforcement of rights against Borrower’s assets or any collateral pledged by Borrower to secure the Guaranteed Obligations; (d) if both
Guarantor and Borrower or any other Person have pledged assets to secure the Guaranteed Obligations, any right to require Agent to proceed first against any such other collateral before proceeding against any collateral pledged by Guarantor;
(e) except as expressly required hereby, promptness, diligence, notice of any default under the Guaranteed Obligations, notice of acceleration or intent to accelerate, demand for payment, notice of acceptance of this Guaranty Agreement,
presentment, notice of protest, notice of dishonor, notice of the incurring by Borrower of additional indebtedness, notice of any suit or other action by Agent against Borrower or any other Person, any notice to any Person liable for the obligation
which is the subject of the suit or action, and all other notices and demands with respect to the Guaranteed Obligations and this Guaranty Agreement; (f)(i) any principles or provisions of law, statutory, or otherwise, which are or might be in
conflict with the terms hereof and any legal or equitable discharge of Guarantor’s obligations hereunder, (ii) the benefit of any statute of limitations affecting Guarantor’s liability hereunder or the enforcement hereof; and
(iii) any requirement that Agent protect, secure, perfect or insure any security interest or Lien or any property subject thereto; and (g) each of the foregoing rights or defenses regardless whether they arise under
(i) Section 43.001–005 of the Tex. Civ. Prac. & Rem. Code, as amended (ii) Section 17.001 of the Texas Civil Practice and Remedies Code, as amended, (iii) Rule 31 of the Texas Rules of
Civil Procedure, as amended, (iv) common law, in equity, under contract, by statute, or otherwise; and (v) any and all rights under Sections 51.003, 51.004 and 51.005 of the Texas Property Code, as amended. 

10. Insolvency. Should Guarantor become insolvent, or fail to pay Guarantor’s debts generally as they become
due, or voluntarily seek, consent to, or acquiesce in the benefit or 

  
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benefits of any Debtor Relief Law, or become a party to (or be made the subject of) any proceeding provided for by any Debtor Relief Law (other than as a creditor or claimant) that could suspend
or otherwise adversely affect the rights and remedies of Agent granted hereunder, then, in any such event, the Guaranteed Obligations shall be, as between Guarantor and Agent and the Banks, a fully matured, due, and payable obligation of Guarantor
to Agent and the Banks (without regard to whether Borrower is then in default under the Credit Agreement or whether the Obligations, or any part thereof is then due and owing by Borrower to Agent or any of the Banks), payable in full by Guarantor to
Agent and the Banks upon demand, which shall be the estimated amount owing in respect of the contingent claim created hereunder. 
 11. Termination; Reinstatement. Guarantor’s obligations hereunder shall remain in full force and effect until all commitments to lend under the Loan Documents have terminated, and the
Guaranteed Obligations have been paid and performed in full (other than contingent indemnification obligations for which claims have not been asserted). If at any time any payment of the principal of or interest or any other amount payable by
Borrower under the Loan Documents is rescinded or must be otherwise restored or returned upon the insolvency, bankruptcy, or reorganization of Borrower or otherwise, then Guarantor’s obligations hereunder with respect to such payment shall be
reinstated as though such payment had been due but not made at such time. 
 12. Stay of Acceleration.
Should Borrower voluntarily seek, consent to, or acquiesce in the benefit or benefits of any Debtor Relief Law, or become a party to (or be made the subject of) any proceeding provided for by any Debtor Relief Law (other than as a creditor or
claimant), all Guaranteed Obligations shall nonetheless be payable by Guarantor immediately if requested by Agent. 
 13. Representations and Warranties. Guarantor represents and warrants that: (a) it is duly organized and in good standing under the laws of the jurisdiction of its organization and has full
capacity and right to make and perform this Guaranty Agreement, and all necessary authority has been obtained; (b) this Guaranty Agreement constitutes its legal, valid and binding obligation enforceable in accordance with its terms, except as
limited by Debtor Relief Laws; (c) the making and performance of this Guaranty Agreement does not and will not violate the provisions of any applicable law, regulation or order, and does not and will not result in the breach of, or constitute a
default or require any consent (that has not been obtained) under, any material agreement, instrument, or document to which Guarantor is a party or by which it or any of its property may be bound or affected; (d) all consents, approvals,
licenses and authorizations of, and filings and registrations with, any governmental authority required under applicable law and regulations for the making and performance of this Guaranty Agreement have been obtained or made and are in full force
and effect; (e) by virtue of its relationship with Borrower, the execution, delivery and performance of this Guaranty Agreement is for the direct benefit of Guarantor and it has received adequate consideration for this Guaranty Agreement; and
(f) Guarantor has, independently and without reliance upon Agent or any of the Banks and based upon such documents and information as Guarantor has deemed appropriate, made its own analysis and decision to enter into this Guaranty Agreement,
and Guarantor has adequate means to obtain from Borrower on a continuing basis information concerning the financial condition and assets of Borrower, and Guarantor is not relying upon Agent or any of the Banks to provide (and Agent and the Banks
shall have no duty to provide) any such information to Guarantor either now or in the future. 

  
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 14. Covenants. So long as this Guaranty Agreement remains in full
force and effect, Guarantor shall: 
 (a) Furnish to Agent the financial statements, compliance
certificates and other financial reports of Guarantor as described in and required under the Credit Agreement; 
 (b) Furnish to Agent such additional information concerning Guarantor as Agent may reasonably request; and 

(c) Obtain at any time and from time to time all authorizations, licenses, consents or approvals as shall
now or hereafter be necessary under all applicable laws or regulations or otherwise in connection with the execution, delivery and performance of this Guaranty Agreement and will promptly furnish copies thereof to Agent. 

15. No Fraudulent Transfer. It is the intention of Guarantor and Agent that the amount of the Guaranteed
Obligations guaranteed by Guarantor by this Guaranty Agreement shall be in, but not in excess of, the maximum amount permitted by fraudulent conveyance, fraudulent transfer, or similar laws applicable to Guarantor (collectively,
“Fraudulent Transfer Laws”). Accordingly, notwithstanding anything to the contrary contained in this Guaranty Agreement or any other agreement or instrument executed in connection with the payment of any of the Guaranteed
Obligations, the amount of the Guaranteed Obligations guaranteed by Guarantor by this Guaranty Agreement shall be limited to that amount which after giving effect thereto would not (a) render Guarantor insolvent, (b) result in the fair
saleable value of the assets of Guarantor being less than the amount required to pay its debts and other liabilities (including contingent liabilities) as they mature, or (c) leave Guarantor with unreasonably small capital to carry out its
business as now conducted and as proposed to be conducted, including its capital needs, as such concepts described in clauses (a), (b) and (c) of this Section 15 are determined
under applicable law, if the obligations of Guarantor hereunder would otherwise be set aside, terminated, annulled or avoided for such reason by a court of competent jurisdiction in a proceeding actually pending before such court. For purposes of
this Guaranty Agreement, the term “applicable law” means as to Guarantor each statute, law, ordinance, regulation, order, judgment, injunction or decree of the United States or any state or commonwealth, any municipality, any
foreign country, or any territory, possession or governmental authority applicable to Guarantor. Any analysis of the provisions of this Guaranty Agreement for purposes of Fraudulent Transfer Laws shall take into account the right of contribution
against any Other Guarantor (as defined in Section 25) and, for purposes of such analysis, give effect to any discharge of intercompany debt as a result of any payment made under the Guaranty. 

16. Successors and Assigns. This Guaranty Agreement is for the benefit of Agent and its successors and assigns,
and, in the event of an assignment of the Guaranteed Obligations in accordance with the provisions of the Credit Agreement, or any part thereof, the rights and remedies hereunder, to the extent applicable to the indebtedness so assigned, may be
transferred with such indebtedness. This Guaranty Agreement is binding on Guarantor and its successors and permitted assigns; provided that, Guarantor may not assign its obligations under this Guaranty Agreement without obtaining the prior
written consent of Agent, and any assignment purported to be made without the prior written consent of Agent shall be null and void. 

  
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 17. CREDIT AGREEMENT. GUARANTOR AGREES THAT AGENT MAY EXERCISE ANY
AND ALL RIGHTS GRANTED TO IT UNDER THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS WITHOUT AFFECTING THE VALIDITY OR ENFORCEABILITY OF THIS GUARANTY AGREEMENT. 

18. Setoff Rights. Agent shall have the right to set off and apply against this Guaranty Agreement or the
Guaranteed Obligations or both, at any time and without notice to Guarantor, any and all deposits (general or special, time or demand, provisional or final) or other sums at any time credited by or owing from Agent to Guarantor whether or not the
Guaranteed Obligations are then due and irrespective of whether or not Agent shall have made any demand under this Guaranty Agreement. As further security for this Guaranty Agreement and the Guaranteed Obligations, Guarantor hereby grants Agent a
security interest in all deposits (general or special, time or demand, provisional or final) other accounts of Guarantor, money, instruments, and other property of Guarantor now or hereafter on deposit with or held by Agent and all other sums at any
time credited by or owing from Agent to Guarantor. The rights and remedies of Agent hereunder are in addition to other rights and remedies (including, without limitation, other rights of setoff) which Agent may have. 

19. Time of Essence. Time shall be of the essence in this Guaranty Agreement with respect to all of
Guarantor’s obligations hereunder. 
 20. GOVERNING LAW; VENUE; SERVICE OF PROCESS. THIS AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS; PROVIDED THAT AGENT SHALL RETAIN ALL RIGHTS UNDER FEDERAL LAW. THIS AGREEMENT HAS BEEN ENTERED INTO IN BEXAR COUNTY, TEXAS, AND IS PERFORMABLE FOR ALL
PURPOSES IN BEXAR COUNTY, TEXAS. THE PARTIES HEREBY AGREE THAT ANY LAWSUIT, ACTION, OR PROCEEDING THAT IS BROUGHT (WHETHER IN CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO ANY OF THE LOAN DOCUMENTS, THE TRANSACTIONS CONTEMPLATED
THEREBY, OR THE ACTIONS OF THE AGENT IN THE NEGOTIATION, ADMINISTRATION OR ENFORCEMENT OF ANY OF THE LOAN DOCUMENTS SHALL BE BROUGHT IN A STATE OR FEDERAL COURT OF COMPETENT JURISDICTION LOCATED IN BEXAR COUNTY, TEXAS. GUARANTOR HEREBY IRREVOCABLY
AND UNCONDITIONALLY (A) SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS, (B) WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH LAWSUIT, ACTION, OR PROCEEDING BROUGHT IN ANY SUCH COURT, AND (C) FURTHER
WAIVES ANY CLAIM THAT IT MAY NOW OR HEREAFTER HAVE THAT ANY SUCH COURT IS AN INCONVENIENT FORUM. EACH OF THE PARTIES HERETO AGREE THAT SERVICE OF PROCESS UPON IT MAY BE MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED AT THE ADDRESS
FOR NOTICES REFERENCED IN THE CREDIT AGREEMENT. 
 21. Notices. Whenever any notice is required or
permitted to be given under the terms of this Guaranty Agreement, the same shall, except as otherwise expressly provided for in 

  
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this Guaranty Agreement, be given in writing, and sent by: (a) certified mail, return receipt requested, postage pre paid; (b) a national overnight delivery service; (c) hand
delivery with written receipt acknowledged; or (d) facsimile, followed by a copy sent in accordance with clause (b) or (c) of this Section 21 sent the same day as the facsimile, in each
case to the address or facsimile number (together with a contemporaneous copy to each copied addressee), as applicable, in the case of Guarantor, set forth on the signature page to this Guaranty Agreement, and in the case of Agent, set forth in the
Credit Agreement. Agent and Borrower shall not conduct communications contemplated by this Guaranty Agreement by electronic mail or other electronic means, except by facsimile transmission as expressly provided in this Section 21,
and the use of the phrase “in writing” or the word “written” shall not be construed to include electronic communications except by facsimile transmissions as expressly provided in this Section 21. Any notice
required or given hereunder shall be deemed received the same Business Day if sent by hand delivery or facsimile, the next Business Day if sent by overnight courier, or three (3) Business Days after posting if sent by certified mail, return
receipt requested; provided that any notice received after 5:00 p.m. Central time on any Business Day or received on any day that is not a Business Day shall be deemed to have been received on the following Business Day. 

22. Expenses. Guarantor hereby agrees to pay on demand: (a) all costs and expenses of Agent in
connection with the preparation, negotiation, execution, and delivery of this Guaranty Agreement and the other Loan Documents and any and all amendments, modifications, renewals, extensions, and supplements thereof and thereto, including, without
limitation, the reasonable fees and expenses of legal counsel, advisors, consultants, and auditors for Agent, (b) all costs and expenses of Agent in connection with any Default and the enforcement of this Guaranty Agreement or any other Loan
Document, including, without limitation, the fees and expenses of legal counsel, advisors, consultants, and auditors for Agent, (c) all transfer, stamp, documentary, or other similar taxes, assessments, or charges levied by any Governmental
Authority in respect of this Guaranty Agreement or any of the other Loan Documents, (d) all costs, expenses, assessments, and other charges incurred in connection with any filing, registration, recording, or perfection of any Lien contemplated
by this Guaranty Agreement or any other Loan Document, and (e) all other costs and expenses incurred by Agent in connection with this Guaranty Agreement or any other Loan Document, any litigation, dispute, suit, proceeding or action; the
enforcement of its rights and remedies, and the protection of its interests in bankruptcy, insolvency or other legal proceedings, including, without limitation, all costs, expenses, and other charges (including Agent’s internal charges)
incurred in connection with evaluating, observing, collecting, examining, auditing, appraising, selling, liquidating, or otherwise disposing of the Collateral or other assets of Borrower. 

23. Indemnification and Survival. Without limitation on any other obligations of Guarantor or remedies of
Agent under this Guaranty Agreement, Guarantor shall, to the fullest extent permitted by law, indemnify, defend and save and hold harmless Agent from and against, and shall pay on demand, any and all damages, losses, liabilities and expenses
(including attorneys’ fees and expenses and the allocated cost and disbursements of Agent’s internal legal counsel) that may be suffered or incurred by Agent in connection with or as a result of any failure of any Guaranteed Obligations to
be the legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with their terms. The obligations of Guarantor under this paragraph shall survive the payment in full of the Guaranteed Obligations and termination of
this Guaranty Agreement. 

  
 10 

 24. Amendments; Counterparts. This Guaranty Agreement may be amended
only by an instrument in writing executed by Guarantor and Agent. This Guaranty Agreement may be executed in multiple counterparts, each of which, for all purposes, shall be deemed an original, and all of which taken together shall constitute but
one and the same instrument. 
 25. Contribution. To the extent that any other Person guarantees the
Guaranteed Indebtedness (each such Person is an “Other Guarantor”), and such Other Guarantor shall be required to pay any portion of any Guaranteed Indebtedness exceeding the greater of (a) the amount of the value
actually received by such Other Guarantor and its Subsidiaries from the Loans and other Obligations and (b) the amount such Other Guarantor would otherwise have paid if such Other Guarantor had paid the aggregate amount of the Guaranteed
Indebtedness (excluding the amount thereof repaid by Borrower) in the same proportion as such Other Guarantor’s net worth on the date enforcement is sought hereunder bears to the aggregate net worth of Guarantor and all Other Guarantors on such
date, then Guarantor agrees to reimburse each such Other Guarantor for the amount of such excess, pro rata, based on the respective net worth of each such Other Guarantors on such date. 

26. WAIVER OF JURY TRIAL. TO THE EXTENT ALLOWED BY APPLICABLE LAW, GUARANTOR AND AGENT EACH IRREVOCABLY WAIVES
TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR PROCEEDING ON, ARISING OUT OF OR RELATING TO THIS GUARANTY AGREEMENT OR ANY OF THE LOAN DOCUMENTS OR THE ACTS OR FAILURE TO ACT OF OR BY AGENT IN THE ENFORCEMENT OF ANY OF THE TERMS OR
PROVISIONS OF THIS GUARANTY AGREEMENT OR THE OTHER LOAN DOCUMENTS. 
 27. FINAL AGREEMENT. THIS
GUARANTY AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 [REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK; SIGNATURE PAGES FOLLOW] 

  
 11 

 EXECUTED as of the first date herein set forth. 

 

			
	GUARANTOR:
	
	 ENCORE CAPITAL GROUP, INC.,
 a Delaware corporation

		
	 By
	 	 /s/ J. Brandon Black

	 Name:
	 	 J. Brandon Black

	 Title:
	 	 President & Chief Executive Officer

	
	 Address for Notices:

	
	 3111 Camino Del Rio North, Suite 1300

	 San Diego, CA 92108

	 Attn: Director, Legal Affairs and Contracts

	 Email: melissa.resslar@encorecapital.com

 Signature Page to 
 Guaranty AgreementForm of Restricted Stock Award Grant Notice and Agreement

 Exhibit 10.5 
 ENCORE CAPITAL GROUP, INC. 
 RESTRICTED STOCK GRANT NOTICE 
 (2005 STOCK INCENTIVE PLAN, AS AMENDED) 
 Encore Capital Group, Inc. (the “Company”), pursuant to its 2005 Stock Incentive Plan, as amended (the “Plan”), hereby awards to Participant a Restricted
Stock Award for the number of shares of the Company’s stock set forth below (the “Award”). The Award is subject to all of the terms and conditions as set forth herein and in the Plan and the Restricted Stock Agreement,
both of which are attached hereto and incorporated herein in their entirety. Capitalized terms not otherwise defined herein shall have the meanings set forth in the Plan or the Restricted Stock Agreement. In the event of any conflict between the
terms in the Award and the Plan, the terms of the Plan shall control. 
  

			
	Participant:	  	[name]
	Date of Grant:	  	[date]
	Vesting Commencement Date:	  	See Vesting Schedule below
	Number of Shares Subject to Award:	  	[number]
	Consideration:	  	Participant’s Services
		
	Vesting Schedule:	  	x shares will vest on [date];
		
		  	x shares will vest on [date]; and
		
		  	x shares will vest on [date].
		
		  	In addition, the vesting of the shares may accelerate in the sole discretion of the Committee and upon certain events described in the Restricted Stock Agreement. Notwithstanding
the foregoing, vesting shall terminate upon the Participant’s termination of Continuous Service.

 Additional Terms/Acknowledgements: Participant acknowledges receipt of, and understands and agrees to, this Restricted
Stock Grant Notice, the Restricted Stock Agreement and the Plan. Participant further acknowledges that as of the Date of Grant, this Restricted Stock Grant Notice, the Restricted Stock Agreement and the Plan set forth the entire understanding
between Participant and the Company regarding the Award and supersede all prior oral and written agreements on that subject. 
 Participant
further agrees that the Company may deliver by e-mail all documents relating to the Plan or this Award (including without limitation, prospectuses required by the Securities and Exchange Commission) and all other documents that the Company is
required to deliver to its security holders (including without limitation, annual reports and proxy statements). Participant also agrees that the Company may deliver these documents by posting them on a website maintained by the Company or by a
third party under contract with the Company. If the Company posts these documents on a website, it will notify Participant by e-mail. 
  

									
	ENCORE CAPITAL GROUP, INC.:	 		 	PARTICIPANT:
				
	By:	 	  
	 		 	  

		 	[J. Brandon Black]	 		 	[name]	 	
					
	Title:	 	 [President and Chief Executive Officer]
	 		 	Date:	 	  

					
	Date:	 	  
	 		 		 	

 ATTACHMENTS:    Restricted Stock Agreement, 2005 Stock Incentive
Plan, as Amended and Restated 

 ATTACHMENT I 

ENCORE CAPITAL GROUP, INC. 

2005 STOCK INCENTIVE PLAN, AS AMENDED 

RESTRICTED STOCK AGREEMENT – NON-EXECUTIVE

 Pursuant to the Restricted Stock Grant Notice (“Grant Notice”) and this Restricted Stock
Agreement and in consideration of your services, Encore Capital Group, Inc. (the “Company”) has awarded you a restricted stock award (the “Award”) under its 2005 Stock Incentive Plan, as amended (the
“Plan”) for the number of shares of the Company’s Stock as indicated in the Grant Notice. Your Award is granted to you effective as of the Date of Grant set forth in the Grant Notice for this Award. Defined terms not
explicitly defined in this Restricted Stock Agreement shall have the same meanings given to them in the Plan. In the event of any conflict between the terms in this Restricted Stock Agreement and the Plan, the terms of the Plan shall control.

 In consideration of the mutual covenants herein contained and other good and valuable consideration, the receipt of which is
hereby acknowledged, the parties hereto do hereby agree that the details of your Award are as follows: 
 1.
VESTING. Subject to the limitations contained herein, your Award will vest in accordance with the vesting schedule provided in the Grant Notice, provided that vesting will cease upon the termination of your Continuous Service. For
purposes of this Award, “Continuous Service” means that your service with the Company or an Affiliate, whether as an employee, director or consultant, is not interrupted or terminated. A change in the capacity in which you
render service to the Company or an Affiliate as an employee, consultant or director or a change in the entity for which you render such service, provided that there is no interruption or termination of your service with the Company or an Affiliate,
shall not terminate your Continuous Service. For example, a change in status from an employee of the Company to a consultant to an Affiliate or to a director shall not constitute an interruption of Continuous Service. To the extent permitted by law,
the Board or its compensation committee or any officer designated by the Board or its compensation committee, in that party’s sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of
absence approved by that party, including sick leave, military leave or any other personal leave. Notwithstanding the foregoing, a leave of absence shall be treated as Continuous Service for purposes of vesting to such extent as may be provided in
the Company’s leave of absence policy, in the written terms of any leave of absence agreement or policy applicable to you, or as otherwise required by law. 
 2. NUMBER OF SHARES. The number of shares subject to your Award may be adjusted from time to time for capitalization adjustments, as provided in the
Plan. 
 3. SECURITIES LAW COMPLIANCE. You may not be issued any shares
under your Award unless the shares are either: (i) then registered under the Securities Act; or (ii) the Company has determined that such issuance would be exempt from the registration requirements of the Securities Act. Your Award also
must comply with other applicable laws and regulations 

  
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governing the Award, and you will not receive such shares if the Company determines that such receipt would not be in material compliance with such laws and regulations. 

4. LIMITATIONS ON TRANSFER. Your Award is not transferable, except by will or by the
laws of descent and distribution. In addition to any other limitation on transfer created by applicable securities laws, you agree not to assign, hypothecate, donate, encumber or otherwise dispose of any interest in any of the shares of Stock
subject to the Award until the shares are vested in accordance with this Restricted Stock Agreement. After the shares have vested, you are free to assign, hypothecate, donate, encumber or otherwise dispose of any interest in such shares provided
that any such actions are in compliance with the provisions herein and applicable securities laws. 
 5.
DIVIDENDS. You shall be entitled to receive payments equal to any cash dividends and other distributions paid with respect to the shares covered by your Award, provided that such distributions shall be converted into additional
shares covered by the Award. If such distributions are paid in cash, you shall be credited with additional shares covered by the Award in an amount equal to (i) the amount of the dividends or other distributions paid on that number of shares
equal to the aggregate number of shares covered by the Award as of that date divided by (ii) the Fair Market Value of a share as of such date. The additional shares credited shall be subject to the same vesting and forfeiture restrictions as
the shares covered by the Award with respect to which they relate. 
 6. RESTRICTIVE
LEGENDS. The shares issued under your Award shall be endorsed with appropriate legends determined by the Company. 
 7. AWARD NOT A SERVICE CONTRACT. 
 (a) Your Continuous Service with the Company or an Affiliate is not for any specified term and may be terminated by you or by the Company or an Affiliate at any time, for any reason, with or
without cause and with or without notice. Nothing in this Restricted Stock Agreement (including, but not limited to, the vesting of your Award pursuant to the schedule set forth in the Grant Notice), the Plan or any covenant of good faith and fair
dealing that may be found implicit in this Restricted Stock Agreement or the Plan shall: (i) confer upon you any right to continue in the employ of, or affiliation with, the Company or an Affiliate; (ii) constitute any promise or
commitment by the Company or an Affiliate regarding the fact or nature of future positions, future work assignments, future compensation or any other term or condition of employment or affiliation; (iii) confer any right or benefit under this
Restricted Stock Agreement or the Plan unless such right or benefit has specifically accrued under the terms of this Restricted Stock Agreement or Plan; or (iv) deprive the Company of the right to terminate you at will and without regard to any
future vesting opportunity that you may have. 
 (b) By accepting this Award, you acknowledge and agree that the right to
continue vesting in the Award pursuant to the schedule set forth in the Grant Notice is earned only by continuing as an employee, director or consultant at the will of the Company (not through the act of being hired, being granted this Award or any
other award or benefit) and that the Company has the right to reorganize, sell, spin-out or otherwise restructure one or more of its businesses or Affiliates at any time or from time to time, as it deems appropriate (a

  
 3 

 
“reorganization”). You further acknowledge and agree that such a reorganization could result in the termination of your Continuous Service, or the termination of Affiliate status of
your employer and the loss of benefits available to you under this Restricted Stock Agreement, including but not limited to, the termination of the right to continue vesting in the Award. You further acknowledge and agree that this Restricted Stock
Agreement, the Plan, the transactions contemplated hereunder and the vesting schedule set forth herein or any covenant of good faith and fair dealing that may be found implicit in any of them do not constitute an express or implied promise of
continued engagement as an employee or consultant for the term of this Restricted Stock Agreement, for any period, or at all, and shall not interfere in any way with your right or the Company’s right to terminate your Continuous Service at any
time, with or without cause and with or without notice. 
 8. WITHHOLDING OBLIGATIONS.

 (a) On or before vesting of the shares pursuant to your Award, or at any time thereafter as requested by the
Company, you hereby authorize withholding from payroll and/or any other amounts payable to you, provided that any such withholding will not be in excess of the minimum statutory withholding requirement, and otherwise agree to make adequate provision
for any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Company or an Affiliate, if any, which arise in connection with your Award. If permissible under applicable law, the Company may, in its sole
discretion: (i) sell or arrange for the sale, on your behalf, of shares acquired by you to meet the withholding obligation and/or (ii) withhold in shares, provided that only the amount of shares necessary to satisfy the minimum withholding
amount are withheld. The Company also reserves the right to require that you assume liability for any tax- and/or social insurance-related charges that may otherwise be due by the Company or an Affiliate with respect to the Award, if the Company
determines in its sole discretion that such charges may legally be transferred to you. To the extent that liability for any such charges is transferred to you, such charges will be subject to the applicable withholding methods set forth in this
Section 7. 
 (b) Unless the tax withholding obligations of the Company and/or any Affiliate are satisfied, the
Company shall have no obligation to remove the restrictive legends from the shares of Stock subject to your Award. 
 9.
NOTICES. Any notices provided for in your Award or the Plan shall be given in writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by the Company to you, five (5) days after deposit
in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company. 
 10.
MISCELLANEOUS. 
 (a) The rights and obligations of the Company under your Award shall be transferable
to any one or more persons or entities, and all covenants and agreements hereunder shall inure to the benefit of, and be enforceable by the Company’s successors and assigns. 

(b) For purposes of your personal tax planning, you may make an election under Section 83(b) of the Code within 30 days of
the date of grant; however, this election by 

  
 4 

 
you will be in your sole discretion. We strongly advise you to consult with your personal legal, tax and financial advisors before you make such an election. 

(c) You agree upon request to execute any further documents or instruments necessary or desirable in the sole determination of the
Company to carry out the purposes or intent of your Award. 
 (d) You acknowledge and agree that you have reviewed your
Award in its entirety, have had an opportunity to obtain the advice of counsel prior to executing and accepting your Award, and fully understand all provisions of your Award. 
 11. GOVERNING PLAN DOCUMENT. Your Award is subject to all the provisions of the Plan, the provisions of which are hereby made a part of your Award, and
is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan. In the event of any conflict between the provisions of your Award and those of the Plan, the
provisions of the Plan shall control. 
 12. SEVERABILITY. If all or any part of this Restricted Stock
Agreement or the Plan is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not invalidate any portion of this Restricted Stock Agreement or the Plan not declared to be unlawful or
invalid. Any Section of this Restricted Stock Agreement (or part of such a Section) so declared to be unlawful or invalid shall, if possible, be construed in a manner which will give effect to the terms of such Section or part of a Section to the
fullest extent possible while remaining lawful and valid. 
 13. EFFECT ON OTHER
EMPLOYEE BENEFIT PLANS. The value of the Award subject to this Restricted Stock Agreement shall not be included as compensation, earnings, salaries, or other similar terms used when calculating the
Employee’s benefits under any employee benefit plan sponsored by the Company or any Affiliate, except as such plan otherwise expressly provides. The Company expressly reserves its rights to amend, modify, or terminate any of the Company’s
or any Affiliate’s employee benefit plans. 
 14. AMENDMENT. This Restricted Stock Agreement may not
be modified, amended or terminated except by an instrument in writing, signed by you and by a duly authorized representative of the Company. Notwithstanding the foregoing, this Restricted Stock Agreement may be amended solely by the Board by a
writing which specifically states that it is amending this Restricted Stock Agreement, so long as a copy of such amendment is delivered to you, and provided that no such amendment adversely affecting your rights hereunder may be made without your
written consent. Without limiting the foregoing, the Board reserves the right to change, by written notice to you, the provisions of this Restricted Stock Agreement in any way it may deem necessary or advisable to carry out the purpose of the grant
as a result of any change in applicable laws or regulations or any future law, regulation, ruling, or judicial decision, provided that any such change shall be applicable only to rights relating to that portion of the Award which is then subject to
restrictions as provided herein. 

  
 5

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