Document:

Exhibit 4.2

 

Amendment No. 1 to

Third Amended and Restated Loan and Security Agreement

 

This Amendment No. 1
to Third Amended and Restated Loan and Security Agreement (“Amendment”) is dated as of October 29, 2020 and
is entered into by and among America’s Car-Mart, Inc., a Texas corporation
(“Parent”), Colonial Auto Finance, Inc., an Arkansas corporation
(“Colonial”), America’s Car Mart, Inc., an Arkansas corporation
(“ACM”), Texas Car-Mart, Inc., a Texas corporation (“TCM”)
(each of Colonial, ACM and TCM, a “Borrower”, and collectively, “Borrowers”), the financial
institutions party to the Loan Agreement (as hereinafter defined) as lenders (collectively, “Lenders”), BMO
Harris Bank N.A., as agent for the Lenders (in such capacity, “Agent”), lead arranger and book manager
for the Lenders. All capitalized terms used herein but not otherwise defined shall have the meanings ascribed to them in the Loan
Agreement (as hereinafter defined).

 

Witnesseth

 

Whereas,
Parent, Borrowers, Lenders and Agent have entered into that certain Third Amended and Restated Loan and Security Agreement dated
as of September 30, 2019 (the “Loan Agreement”);

 

Whereas,
Parent, Borrowers, Lenders and Agent have agreed to amend the Loan Agreement subject to the terms and conditions stated herein;
and

 

Now,
Therefore, in consideration of the premises herein contained and other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, Lenders, Agent, Parent and Borrowers hereby agree as follows:

 

Section 1.
Amendment to the Loan Agreement.

 

1.1.          The
following defined terms are hereby added to Section 1.1 of the Loan Agreement in their appropriate alphabetical order, each
such defined term to read in its entirety as follows:

 

“Acquired
Business” means the entity or assets acquired by an Obligor in an Acquisition, whether before or after the date hereof.

 

“Acquired
Contract” means a Vehicle Contract acquired by Colonial that was originated by a Person other than a Borrower.

 

“Permitted
Acquisition” means any Acquisition with respect to which all of the following conditions shall have been satisfied:

 

(a)       the
Acquired Business (i) is in a business engaged in as of the date of this Agreement by an Obligor or any business reasonably related
thereto, and (ii) has its primary operations within the United States of America;

 

     

     

    

(b)       the
board of directors or other similar governing body of the Person to be acquired shall have approved such Acquisition (and, if requested,
the Agent shall have received evidence, in form and substance reasonably satisfactory to the Agent, of such approval);

 

(c)       the
financial statements of the Acquired Business shall have been audited by a nationally recognized accounting firm or such financial
statements shall have undergone review of a scope satisfactory to the Agent with respect to any Acquisition where Total Consideration
for such Acquisition exceeds $10,000,000;

 

(d)       the
Total Consideration for the Acquired Business and, when taken together with the Total Consideration for all Acquired Businesses
acquired during the Fiscal Year during which such Acquisition is consummated, shall not exceed $20,000,000 in the aggregate;

 

(e)       the
Borrowers shall have notified the Agent and Lenders not less than thirty (30) days prior to any such Acquisition (or such
shorter period as may be agreed upon by the Agent) and furnished to the Agent and Lenders at such time reasonable details as to
such Acquisition (including sources and uses of funds therefor and the documents executed in connection with such Acquisition),
and, with respect to any Acquisition where Total Consideration for such Acquisition exceeds $10,000,000, three (3)-year historical
financial information and three (3)-year pro forma financial forecasts of the Acquired Business on a stand alone basis as
well as of the Borrower on a consolidated basis after giving effect to the Acquisition and covenant compliance calculations reasonably
satisfactory to the Agent demonstrating satisfaction of the condition described in clause (g) below;

 

(f)       if
such Acquisition is a merger or consolidation, a Borrower or any Subsidiary thereof shall be the surviving Person, and such surviving
Person shall become an Obligor; and no Change in Control shall have been effected thereby;

 

(g)       after
giving effect to the Acquisition and any extension of credit in connection therewith, no Default or Event of Default shall exist,
including with respect to the financial covenants contained in Section 10.3 on a pro forma basis (looking back four completed
fiscal quarters as if the Acquisition occurred on the first day of such period and after giving effect to the payment of the purchase
price for the Acquired Business); and

 

(h)       no
later than five (5) Business Days prior to the proposed closing date of such Acquisition (or such shorter period as may be agreed
to by the Agent) the Borrowers, to the extent requested by the Agent, shall have delivered to the Agent promptly upon the finalization
thereof copies of the final purchase agreement, sale agreement, merger agreement or other agreement evidencing such Acquisition,
including all schedules, exhibits and annexes thereto and each other material document executed, delivered, contemplated by or
prepared in connection therewith and any amendment, modification or supplement to any of the foregoing, which shall be in form
and substance reasonably satisfactory to the Agent.

 

    	 	-2-	 

     

    

“Total
Consideration” means, with respect to an Acquisition, the sum (but without duplication) of (a) cash paid or payable
in connection with any Acquisition, whether paid at or prior to or after the closing thereof, (b) indebtedness payable to
the seller in connection with such Acquisition, including all “earn-out” and other future payment obligations subject
to the occurrence of any contingency (provided that, in the case of any future payment subject to a contingency, such shall
be considered part of the Total Consideration to the extent of the reserve, if any, required under GAAP to be established in respect
thereof by any Obligor), (c) the fair market value of any equity securities, including any warrants or options therefor, delivered
in connection with any Acquisition, (d) the present value of future payments in connection with such Acquisition which are
required to be made over a period of time and are not contingent upon any Obligor meeting financial performance objectives (exclusive
of salaries paid in the ordinary course of business) (discounted at the Base Rate), but only to the extent not included in clause (a),
(b) or (c) above, and (e) the amount of indebtedness assumed in connection with such Acquisition.

 

1.2.          The
following definitions as set forth in Section 1.1 of the Loan Agreement are hereby amended and restated in their entirety to
read as follows:

 

“Colonial
Contracts Advance Rate” means 50% with respect to Long Term Contracts, 55% with respect to Medium Term Contracts and
55% with respect to all other Vehicle Contracts; provided, however, that the applicable Colonial Contracts Advance Rate
shall be (i) reduced by 5.0% for Vehicle Contract that is an Acquired Contract and (ii) further adjusted based upon the most recent
Colonial Contracts Advance Rate Adjustment Percent in accordance with the following schedule:

 

	Colonial Contracts Advance Rate Adjustment Percentage	Colonial Advance Rate Long-Term Contracts	Colonial Advance Rate Medium Term Contracts
	≤ 36%	50.00%	55.00%
	>36.00% & ≤ 36.25%	49.75%	54.75%
	>36.25% & ≤ 36.50%	49.50%	54.50%
	>36.50% & ≤ 36.75%	49.25%	54.25%
	>36.75%  & ≤ 37.00%	49.00%	54.00%
	>37.00% & ≤ 37.25%	48.75%	53.75%
	>37.25% & ≤ 37.50%	48.50%	53.50%
	>37.50% & ≤ 37.75%	48.25%	53.25%

 

    	 	-3-	 

     

    

	Colonial Contracts Advance Rate Adjustment Percentage	Colonial Advance Rate Long-Term Contracts	Colonial Advance Rate Medium Term Contracts
	>37.75% & ≤ 38.00%	48.00%	53.00%
	>38.00% & ≤ 38.25%	47.75%	52.75%
	>38.25% & ≤ 38.50%	47.50%	52.50%
	>38.50% & ≤ 38.75%	47.25%	52.25%
	>38.75% & ≤ 39.00%	47.00%	52.00%
	>39.00% & ≤ 39.25%	46.75%	51.75%
	>39.25% & ≤ 39.50%	46.50%	51.50%
	>39.50% & ≤ 39.75%	46.25%	51.25%
	>39.75% & ≤ 40.00%	46.00%	51.00%
	>40.00% & ≤ 40.25%	45.75%	50.75%
	>40.25% & ≤ 40.50%	45.50%	50.50%
	>40.50% & ≤ 40.75%	45.25%	50.25%
	>40.75% & ≤ 41.00%	45.00%	50.00%
	>41.00% & ≤ 41.25%	44.75%	49.75%
	>41.25% & ≤ 41.50%	44.50%	49.50%
	>41.50% & ≤ 41.75%	44.25%	49.25%
	>41.75 % & ≤ 42.00%	44.00%	49.00%

 

The Colonial Contracts Advance Rate
Adjustment Percent shall be computed monthly by Colonial (subject to the review and approval of the Agent) and be included in its
Colonial Borrowing Base Report delivered pursuant to Section 8.1 hereof, at which time any adjustment to the Colonial Contract
Advance Rate based on such computation shall become effective and thereafter remain in effect until delivery of a Colonial Borrowing
Base Report following the end of the next calendar month. If Colonial fails to deliver its Colonial Borrowing Base Report or provide
the Colonial Contracts Advance Rate Adjustment Percentage computation as so required, the Colonial Contracts Advance Rate Adjustment
Percentage shall be deemed to be equal to 42.0% until such Colonial Borrowing Base Report or the Colonial Contracts Advance Rate
Adjustment Percentage is delivered.

 

“Colonial
Contracts Formula Amount” means, as of any date of determination, an amount equal to (a) Colonial Contracts Advance Rate
multiplied by the Colonial Net Eligible Contract Payments, minus (b) the Colonial Availability Reserve; provided, that
(i) the aggregate amount of Colonial Net Eligible Contract Payments attributable to Modified Contracts shall at no time exceed
8.0% of the Colonial Contracts Formula Amount and (ii) the aggregate amount of Colonial Net Eligible Contract Payments attributable
to Acquired Contracts shall at no time exceed 10.0% of the Colonial Contracts Formula Amount.

 

“Modified
Contract” means, at any time the same is to be determined, a Vehicle Contract (a) that has been rewritten, restructured,
amended or otherwise modified from its original terms seven (7) or more times, or (b) where the term of such Vehicle Contract has
been extended (pursuant to one or more modifications) more than one hundred eighty (180) days from the original termination date.

 

    	 	-4-	 

     

    

“Permitted
Asset Disposition” means, as long as no Default or Event of Default exists and all Net Proceeds are remitted to Agent
for application to the Obligations, an Asset Disposition that is:

 

(a)       a
sale of Inventory in the Ordinary Course of Business;

 

(b)       a
disposition of Inventory that is obsolete, unmerchantable or otherwise unsalable in the Ordinary Course of Business;

 

(c)       termination
of a lease of real or personal Property that is not necessary for the Ordinary Course of Business, could not reasonably be expected
to have a Material Adverse Effect and does not result from an Obligor’s default;

 

(d)       Permitted
Sale/Leaseback;

 

(e)       a
Permitted Contract Sale in an amount not to exceed $1,000,000 in any one or series of related transactions;

 

(f)       an
Asset Disposition consisting of Real Estate (including any Asset Disposition of Real Estate as part of a sale and leaseback transaction
that does not qualify as a Permitted Sale/Leaseback); provided, that (i) such Asset Disposition, together with all Asset
Dispositions of Real Estate during any fiscal year of the Borrowers, does not exceed $5,000,000 in the aggregate, (ii) each
such Asset Disposition shall be made for fair value, and (iii) 100% of the total consideration received at the closing of
such Asset Disposition shall consist of cash;

 

(g)       an
Asset Disposition consisting of any other Property; provided, that (i) such Asset Disposition, together with all such other
Asset Dispositions during any fiscal year of the Borrowers, does not exceed $1,000,000 in the aggregate, (ii) each such Asset
Disposition shall be made for fair value, and (iii) 100% of the total consideration received at the closing of such Asset
Disposition shall consist of cash; or

 

(h)       approved
in writing by Agent and Required Lenders.

 

“Restricted
Investment” means any Investment by the Parent or any of its Subsidiaries, other than (a) Cash Equivalents that
are subject to Agent’s Lien and control, pursuant to documentation in form and substance satisfactory to Agent; (b) loans
and advances permitted under Section 10.2.7; (c) investments by an Obligor into another Obligor; (d) investments as of the
Closing Date by an Obligor into a Subsidiary that is not an Obligor, (e) investments by one or more of the Obligors into ACM Insurance
in an amount not to exceed the required funding amount of ACM Insurance under the rules and regulations of the Arkansas Insurance
Department, and (f) any Investment constituting a Permitted Acquisition.

 

    	 	-5-	 

     

    

1.3.          The
defined term “Eligible Vehicle Contract” appearing in in Section 1.1 of the Loan Agreement shall be and hereby
is amended by amending and restating clauses (a), (l), (o), (p) and (r) to read in their entirety as follows:

 

(a)       the
Vehicle Contract (i) strictly complies with all of Colonial’s warranties and representations contained herein and (ii) is
serviced by ACM or any other servicer party to the Backup Servicing Agreement;

 

(l)        the
original term of the Vehicle Contract is not more than 60 months;

 

(o)       the
Vehicle Contract is not a Modified Contract unless the Contract Debtor thereon has made full contractual payments for at least
ninety (90) consecutive days in the amounts called for by the terms of such Vehicle Contract after such Vehicle Contract has been
rewritten, restructured, amended or otherwise modified or the term of such Vehicle Contract has been extended; provided, that the
amount of any such Modified Contract shall be limited by the provision set forth in defined term “Colonial Contracts Formula
Amount”;

 

(p)       the
Vehicle Contract is either (i) originated in the Ordinary Course of Business by a Borrower, or (ii) an Acquired Contract, provided,
that the amount of any such Acquired Contract shall be limited by the provision set forth in defined term “Colonial
Contracts Formula Amount”;

 

(r)        such
contracts do not relate to the financing of mechanical or repair issues.

 

1.4.          The
defined term “Eligible Vehicle Inventory” appearing in in Section 1.1 of the Loan Agreement shall be and hereby
is amended by amending and restating clause (c) to read in its entirety as follows:

 

(c)       in
the case of used Vehicles, either (i) ACM or TCM physically holds such Certificates of Title (including Certificates of Title received
after 60 days of the acquisition of such Vehicle), or (ii) ACM or TCM has, in accordance with its standard policies and procedures,
initiated the process by which the foregoing requirements of this clause (c)(i) will be satisfied; provided, that any used
Vehicle shall be excluded under this clause (ii) if the Certificate of Title for such Vehicle is not received by ACM or TCM within
60 days from the date of such Vehicle has been acquired;

    	 	-6-	 

     

    

 

1.5.          The
defined term “Permitted Contract Sale” appearing in in Section 1.1 of the Loan Agreement shall be and hereby
is amended by amending and restating clause (b) to read in its entirety as follows:

 

(b)       each
Vehicle Contract disposed pursuant to such sale is not an Eligible Vehicle Contract;

 

1.6.          Section
2.1.7 of the Loan Agreement shall be amended and restated to read in its entirety as follows:

 

Section
2.1.7. Increase in Colonial Revolver Commitments. Colonial may, on any Business Day prior to the Revolver Commitment
Termination Date, with the written consent of the Agent, increase the aggregate amount of the Colonial Revolver Commitments
by delivering a request to the Agent at least ten (10) Business Days prior to the desired effective date of such increase
(the “Revolver Increase”) identifying an additional Lender (or additional Colonial Revolver Commitment for
an existing Lender) and the amount of its Colonial Revolver Commitments (or additional amount of its Colonial Revolver
Commitments); provided, however, that:

 

(a)       the
request for the Revolver Increase shall be in form and substance reasonably acceptable to the Agent;

 

(b)       the
aggregate amount of all such Revolver Increases shall not exceed $100,000,000 and any such Revolver Increase shall be in an amount
not less than $5,000,000 (or such lesser amount then agreed to by the Agent);

 

(c)       the
conditions set forth in Section 6.2 are satisfied and the applicable commitments have been received on the effective date
of the Revolver Increase;

 

(d)       the
Revolver Increase shall be offered on the same terms as existing Colonial Revolver Commitments, except for a closing fee specified
by Agent and Lenders with a Revolver Increase; and

 

(e)       there
shall be (i) no more than three (3) total Revolver Increases under this Section, and (ii) no reduction in Colonial Revolver Commitments
pursuant to Section 2.1.4 prior to the requested Revolver Increase.

 

The effective date of the Revolver
Increase shall be agreed upon by Colonial and the Agent. The Agent, Colonial, and new and existing Lenders shall execute and deliver
such documents and agreements as the Agent deems appropriate to evidence the increase in Colonial Revolver Commitments, and the
Agent shall be entitled to revise Schedule 1.1 to reflect the increased Colonial Revolver Commitments. Colonial shall prepay and
Lenders shall fund Colonial Revolver Loans on the effective date of the Revolver Increase as necessary to allocate Colonial Revolver
Loans among Lenders in accordance with their adjusted shares of the Colonial Revolver Commitments. Any Lender with a new or increased
Colonial Revolver Commitment shall also be allocated a Pro Rata share of the ACM-TCM Revolver Commitment so that all Lenders shall
hold the ACM-TCM Revolver Commitments and the Colonial Revolver Commitments on a Pro Rata basis. Notwithstanding anything herein
to the contrary, no Lender shall have any obligation to increase its Colonial Revolver Commitments and no Lender’s Colonial
Revolver Commitments shall be increased without its consent thereto, and each Lender may at its option, unconditionally and without
cause, decline to increase its Colonial Revolver Commitments.

    	 	-7-	 

     

    

 

1.7.       Section
15.1.1(d)(i) of the Loan Agreement shall be amended and restated to read in its entirety as follows:

 

(i) alter Section 5.5.2,
7.1 (except to add Collateral) or 15.1.1;

 

Section 2. Conditions.

 

The effectiveness of
this Amendment is subject to the satisfaction of the following conditions precedent:

 

2.1.       The
Parent, the Borrower, the Agent and the Lenders shall have executed and delivered this Amendment .

 

2.2.       The
Agent shall have received, for the Pro Rata benefit of the Lenders, a non-refundable amendment fee equal to $50,000.

 

2.3.       Borrowers
shall have executed and delivered to Agent such other documents and instruments as Agent may reasonably require.

 

Section 3. Representations.

 

In order to induce
the Agent and the Lenders to enter into this Amendment, each Obligor hereby represent and warrant to the Bank that as of the date
hereof:

 

3.1.       Authorization,
Etc. The Obligors have the power and authority to execute, deliver and perform this Amendment and the other Loan Documents
(if any) called for hereby. The Obligors have taken all necessary action (including, without limitation, obtaining approval of
its equity holders, if necessary) to authorize its execution, delivery and performance of this Amendment and the other Loan Documents
(if any) called for hereby. No consent, approval or authorization of, or declaration or filing with, any Governmental Authority,
and no consent of any other Person, is required in connection with such Obligor’s execution, delivery and performance of
this Amendment or such other Loan Documents, except for those already duly obtained. This Amendment and the other Loan Documents
(if any) called for hereby have been duly executed and delivered by the Obligors and constitute the legal, valid and binding obligation
of the Obligors, enforceable against them in accordance with their terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, or similar laws affecting the enforcement of creditor rights generally or by equitable principles relating
to enforceability. The execution, delivery and performance of this Amendment and the other Loan Documents (if any) called for hereby
by the relevant Obligors does not (i) contravenes the terms of any Obligor’s Organic Documents; (ii) conflict with
or constitute a violation or breach of, or constitutes a default under, or results in the creation or imposition of any Lien (other
than pursuant to the Security Documents) upon the Property of any Obligor by reason of the terms of any material contractual obligation
(including without limitation contractual obligations arising from any material agreements to which any Obligor is a party or which
is binding upon it); or (iii) violates any requirement of law in any material respect.

 

    	 	-8-	 

     

    

3.2.       No
Change to Organic Documents. Each Obligor hereby certifies that the copies of such Obligor’s Organic Documents previously
delivered to the Agent under the Loan Documents continue to be true, correct and complete, have not been amended or otherwise modified
since the date of such delivery, and are in full force and effect on the date hereof. The Agent and the Lenders may conclusively
rely on this certification until it is otherwise notified by the applicable Obligor in writing.

 

3.3.       Representations
and Warranties. After giving effect to this Amendment, the representations and warranties set forth in Section 9 of the
Loan Agreement and in the other Loan Documents are and shall be and remain true and correct.

 

3.4.       No
Default. No Default or Event of Default exists under the Loan Agreement or shall result after giving effect to this Amendment.
No Regulatory Event shall have occurred and be continuing.

 

Section 4.
Reaffirmations.

 

4.1.        Collateral.
The Obligors heretofore executed and delivered to the Agent the Security Documents. The Obligors hereby acknowledge and agree
that the Liens created and provided for by the Security Documents continue to secure, among other things, the Obligations arising
under the Loan Agreement as amended hereby; and the Security Documents and the rights and remedies of the Agent thereunder, the
obligations of the Obligors thereunder, and the Liens created and provided for thereunder remain in full force and effect and
shall not be affected, impaired or discharged hereby. Nothing herein contained shall in any manner affect or impair the priority
of the Liens created and provided for by the Security Documents as to the indebtedness which would be secured thereby prior to
giving effect to this Amendment.

 

4.2.       Guaranties.
Each Guarantor hereby acknowledges that it has reviewed the terms and provisions of this Amendment and consents to any modification
of the Loan Agreement and the other Loan Documents effected pursuant to this Amendment. Each Guarantor hereby confirms to the Agent
and the Lenders that, after giving effect to this Amendment, the Guaranty of such Guarantor and each other Loan Document to which
such Guarantor is a party continues in full force and effect and is the legal, valid and binding obligation of such Guarantor,
enforceable against such Guarantor in accordance with their terms except as enforceability may be limited by applicable bankruptcy,
insolvency, or similar laws affecting the enforcement of creditors’ rights generally or by equitable principles relating
to enforceability. Each Guarantor acknowledges and agrees that (i) notwithstanding the conditions to effectiveness set forth in
this Amendment, such Guarantor is not required by the terms of the Loan Agreement or any other Loan Document to consent to the
waivers or modifications to the Loan Agreement effected pursuant to this Amendment and (ii) nothing in the Loan Agreement, this
Amendment or any other Loan Document shall be deemed to require the consent of such Guarantor to any future waivers or modifications
to the Loan Agreement.

 

    	 	-9-	 

     

    

Section 5.
Miscellaneous.

 

5.1.       Except as specifically amended
herein, the Loan Agreement shall continue in full force and effect in accordance with its original terms. Reference to this specific
Amendment need not be made in the Loan Agreement, or any other instrument or document executed in connection therewith, or in any
certificate, letter or communication issued or made pursuant to or with respect to the Loan Agreement, any reference in any of
such items to the Loan Agreement being sufficient to refer to the Loan Agreement as amended hereby. This Amendment is not a novation
nor is it to be construed as a release, waiver or modification of any of the terms, conditions, representations, warranties, covenants,
rights or remedies set forth in the Loan Agreement or the other Loan Documents, except as specifically set forth herein. Without
limiting the foregoing, the Obligors agree to comply with all of the terms, conditions, and provisions of the Loan Agreement and
the other Loan Documents except to the extent such compliance is irreconcilably inconsistent with the express provisions of this
Amendment.

 

5.2.       The Borrowers agree to pay
on demand all reasonable out-of-pocket costs and expenses of or incurred by the Agent in connection with the negotiation, preparation,
execution and delivery of this Amendment and the other instruments and documents being executed and delivered in connection herewith
and the transactions contemplated hereby, including the reasonable fees, charges and disbursements of counsel for the Agent.

 

5.3.       This Amendment may be executed
in any number of counterparts, and by the different parties on different counterpart signature pages, all of which taken together
shall constitute one and the same agreement. Any of the parties hereto may execute this Amendment by signing any such counterpart
and each of such counterparts shall for all purposes be deemed to be an original. Delivery of an executed counterpart of a signature
page of this Amendment by facsimile or in electronic (e.g., “pdf” or “tif”) format shall be effective as
delivery of a manually executed counterpart of Amendment. This Amendment shall be governed by, and construed in accordance with,
the internal laws of the State of Illinois.

 

[Remainder
of Page Intentionally Left Blank]

 

 

 

 

    	 	-10-	 

     

    

 

In
Witness Whereof, the parties have executed this Amendment under seal on the date first written above.

 

		BORROWERS:	
	 	 	 
	 	COLONIAL AUTO FINANCE, INC., an Arkansas corporation	 
	 	 	 
	 	By:	/s/ Vickie D. Judy	 
	 	 	Name:	Vickie D. Judy	 
	 	 	Title:	Secretary, Treasurer	 
	 	 	 
	 	 	 
	 	AMERICA’S
CAR-MART, INC., an Arkansas corporation	 
	 	 	 
	 	By:	/s/ Vickie D. Judy	 
	 	 	Name:	Vickie D. Judy	 
	 	 	Title:	Vice President, Secretary, Treasurer	 
	 	 	 
	 	 	 
	 	TEXAS CAR-MART, INC., a Texas corporation	 
	 	 	 
	 	By:	/s/ Vickie D. Judy	 
	 	 	Name:	Vickie D. Judy	 
	 	 	Title:	Vice President, Secretary, Treasurer	 
	 	 	 

 

    	[Signature Page to Amendment No. 1]

     

    

	 	PARENT:	 
	 	 	 
	 	AMERICA’S
CAR-MART, INC., a Texas corporation	 
	 	 	 
	 	By:	/s/ Vickie D. Judy	 
	 	 	Name:	Vickie D. Judy	 
	 	 	Title:	Chief Financial
Officer	 
	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

    	[Signature Page to Amendment No. 1]

     

    

	 	AGENT AND LENDERS:	 
	 	 	 
	 	BMO
 HARRIS  BANK N.A., as Agent and Lender	 
	 	 	 
	 	By:	/s/ Guadalupe Marquez	 
	 	 	Name:	Guadalupe Marquez	 
	 	 	Title:	Director	 
	 	 	 

 

 

 

 

 

 

 

 

 

 

    	[Signature Page to Amendment No. 1]

     

    

	 	 	 
	 	BOKF, NA D/B/A BANK OF  ARKANSAS, as Lender	 
	 	 	 
	 	By:	/s/ Jacob Hudson	 
	 	 	Name:	Jacob Hudson	 
	 	 	Title:	Arkansas President	 
	 	 	 

 

 

 

 

 

 

 

 

 

    	[Signature Page to Amendment No. 1]

     

    

	 	 	 
	 	COMMERCE
BANK, as Lender	 
	 	 	 
	 	By:	/s/ Nick Warren	 
	 	 	Name:	Nick Warren	 
	 	 	Title:	 President	 
	 	 	 

 

 

 

 

 

 

 

 

 

    	[Signature Page to Amendment No. 1]

     

    

	 	 	 
	 	ARVEST
BANK, as Lender	 
	 	 	 
	 	By:	/s/ Andrew Coffey	 
	 	 	Name:	Andrew Coffey	 
	 	 	Title:	 Vice President	 
	 	 	 

 

 

 

 

 

 

 

 

 

 

    	[Signature Page to Amendment No. 1]

     

    

	 	 	 
	 	FIRST
HORIZON BANK, as Lender	 
	 	 	 
	 	By:	/s/ Blake Chandler	 
	 	 	Name:	Blake Chandler	 
	 	 	Title:	 Vice President	 
	 	 	 

 

 

 

 

 

 

 

 

    	[Signature Page to Amendment No. 1]

     

    

	 	 	 
	 	WELLS
FARGO BANK, N.A., as Lender	 
	 	 	 
	 	By:	/s/ William L. Laird	 
	 	 	Name:	William L. Laird	 
	 	 	Title:	 Senior Vice President, Portfolio Admin	 
	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Amendment No. 1]Exhibit 10.1

 

PAPA JOHN’S INTERNATIONAL, INC.

 

AMENDED AND RESTATED CHANGE OF CONTROL
SEVERANCE PLAN

 

Effective November 1, 2020

 

Article 1

PURPOSE

 

The Company considers
it essential to the best interests of its stockholders to foster the continued employment of key management personnel in the face
of a possible change of control of the Company. As such, in accordance with the terms of this Plan, effective November 1,
2020, the Company will provide Severance Benefits to an eligible individual in the event of the eligible individual’s Qualifying
Termination following a Change of Control. Capitalized terms used throughout this Plan shall have the meanings set forth in Article 2,
except as otherwise defined in this Plan or where the context clearly requires otherwise. This Plan completely supersedes and replaces
the Company’s previous Change of Control Severance Plan that was adopted effective November 1, 2018.

 

Article 2

DEFINITIONS

 

Section 2.01          “Base
Salary” means, with respect to a Participant, the Participant’s annual base salary in effect on the
date of the Participant’s Separation from Service; provided, however, that if the Participant’s
Separation from Service is for Good Reason due to a reduction in the Participant’s annual base salary pursuant to Section 2.10(b),
the Participant’s Base Salary will be the Participant’s annual base salary in effect immediately before such
reduction.

 

Section 2.02           “Board” means
the Board of Directors of the Company.

 

Section 2.03           “Cause” shall
have the meaning, with respect to a Participant, as set forth in any employment agreement between the Employing Company and
the Participant; provided, however, that in the absence of an employment agreement containing such definition,
 “Cause” means, with respect to a Participant, the Participant’s Separation from Service for any of the
following:

 

(a)           gross
negligence or willful misconduct in connection with the performance of duties;

 

(b)           conviction
of a criminal offense (other than minor traffic offenses) that is, or may reasonably be expected to be, injurious to the Company
or the Employing Company, their business, reputation, prospects, or otherwise;

 

(c)           material
breach of any term of any agreement between the Participant and the Company or the Employing Company, including any employment,
consulting or other services, confidentiality, intellectual property, non-competition or non-disparagement agreement;

 

    

    

    

 

(d)           acts
or omissions involving willful or intentional malfeasance or misconduct that is, or may reasonably be expected to be, injurious
to the Company or the Employing Company, their business, reputation, prospects, or otherwise; or

 

(e)           commission
of any act of fraud or embezzlement against the Company or the Employing Company.

 

Section 2.04          “Change
of Control” means a “Corporate Transaction” as defined in the Company’s 2018 Omnibus
Incentive Plan (as may be amended from time to time).

 

Section 2.05          “Code”
means the Internal Revenue Code of 1986, as amended, and the Treasury regulations promulgated thereunder. Reference to any
section or subsection of the Code includes reference to any comparable or succeeding provisions of any legislation that
amends, supplements, or replaces such section or subsection.

 

Section 2.06          “Committee”
means the Compensation Committee of the Board.

 

Section 2.07          “Company” means
Papa John’s International, Inc., a Delaware corporation, or its successor or assignee (or both, or more than one
of each or both).

 

Section 2.08          “Effective
Date” means November 1, 2020.

 

Section 2.09          “Employing
Company” means the Company, or any of its direct and indirect subsidiaries thereof, which directly employs the Participant.

 

Section 2.10         “Good
Reason” shall have the meaning, with respect to a Participant, as set forth in any employment agreement
between the Employing Company and the Participant; provided, however, that in the absence of an employment
agreement containing such definition, “Good Reason” means, with respect to a Participant, the Participant’s
resignation from employment with the Employing Company after the occurrence of any of the following events without the
Participant’s consent:

 

(a)           the
assignment to the Participant of different job responsibilities that results in a substantial decrease in the level of responsibility
from those in effect immediately prior to a Change of Control;

 

(b)           a
material reduction by the Employing Company or the surviving company in the Participant’s base salary as in effect immediately
prior to a Change of Control;

 

(c)           a
material reduction by the Employing Company or the surviving company in total benefits available to the Participant under cash
incentive and other employee benefit plans after a Change of Control compared to the total package of such benefits as in effect
prior to the Change of Control;

 

(d)           the
requirement by the Employing Company or the surviving company that the Participant be based more than 50 miles from where the Participant’s
office is located immediately prior to a Change of Control, except for required travel on company business to an extent substantially
consistent with the business travel obligations which the Participant undertook on behalf of the Employing Company prior to the
Change of Control; or

 

    2

    

    

 

(e)            the
failure by the Employing Company to obtain from any successor (whether direct or indirect, by purchase, merger, consolidation,
or otherwise) to all or substantially all of the business and/or assets of the Company (a “Successor”), upon
the Participant’s written request, an agreement providing that such Successor assents to the fulfillment of the Employing
Company’s obligations under any employment agreement between the Employing Company and the Participant; provided,
that the foregoing events shall not be deemed to constitute Good Reason unless (i) the Participant has notified the Employing
Company in writing of the occurrence of such event(s) within sixty (60) days of such occurrence, (ii) the Employing Company
has failed to have cure such event(s) within thirty (30) days of its receipt of such written notice, and (iii) the Participant
terminates employment within thirty (30) days of such failure of the Employing Company to cure.

 

Section 2.11           “Participant” means
any Tier 1 Participant, Tier 2 Participant or Tier 3 Participant who has not ceased to be a Participant under Section 3.03.

 

Section 2.12           “Plan” means
this Papa John’s International, Inc. Amended and Restated Change of Control Severance Plan, as it may be amended
from time to time, or any successor plan, program, or arrangement thereto.

 

Section 2.13           “Qualifying
Termination” means, with respect to a Participant, the Participant’s Separation from Service
(a) initiated by the Employing Company other than for Cause or (b) initiated by the Participant for Good Reason, in
either case during the time period commencing on the effective date of a Change of Control and continuing until the
twenty-four (24)-month anniversary of such date.

 

Section 2.14           “Separation
from Service” means “separation from service” from the Employing Company as described under Code
Section 409A(a)(2)(A)(i). A Participant who is both an employee of the Employing Company and a director will not have a
Separation from Service until he or she has a Separation from Service with respect to both his or her employment and his or
her Board membership.

 

Section 2.15           “Severance
Benefits” means the severance amounts payable to a Participant pursuant to Section 4.01(a)(ii), (iii),
(iv) and (v) of this Plan.

 

Section 2.16           “Target
Bonus Amount” means the annual bonus amount a Participant would earn for the year of Participant’s Qualifying Termination
assuming achievement of target performance underany quarterly or annual non-equity incentive-based compensation plans in effect
as of Participant’s Qualifying Termination. If Participant’s target bonus amount has not been established under such
plans as of Participant’s Qualifying Termination, the target bonus amount for the year prior to Participant’s Qualifying
Termination shall be the Target Bonus Amount.

 

    3

    

    

 

Section 2.17           “Tier
1 Participant” means, subject to Section 3.03, those individuals approved as such by the Board or the Committee
pursuant to Section 3.01. As of the Effective Date, there are no Tier 1 Participants.

 

Section 2.18           “Tier
2 Participant” means, subject to Section 3.03, those individuals approved as such by the Board or the
Committee pursuant to Section 3.01.

 

Section 2.19           “Tier
3 Participant” means, subject to Section 3.03, those individuals approved as such by the Board or the
Committee pursuant to Section 3.01. As of the Effective Date, there are no Tier 3 Participants.

 

Article 3

ELIGIBILITY
AND PARTICIPATION

 

Section 3.01            Eligibility

 

(a)            As
of the Effective Date, the Board or the Committee has approved via resolution certain individuals for participation in the Plan
as either Tier 2 Participants or Tier 3 Participants. The Committee shall provide notice to each such individual of his or her
selection for participation in the Plan, and each such individual shall become a Participant in the Plan once he or she executes
and delivers an acknowledgement letter (in such form as approved by the Committee) to the Committee in the manner specified in
Section 6.05.

 

(b)            The
Board or the Committee may approve via resolution additional individuals as Participants subsequent to the Effective Date. The
Committee shall provide notice to each such individual of his or her selection for participation in the Plan, and each such individual
shall become a Participant in the Plan once he or she executes and delivers an acknowledgement letter (in such form as approved
from time to time by the Committee) to the Committee in the manner specified in Section 6.05.

 

Section 3.02            Exclusive
Benefits

 

Any Severance Benefits
payable to a Participant under this Plan will be paid solely in lieu of, and not in addition to, any other severance payments or
benefits, including but not limited to bonus payments, payable under any offer letter, employment agreement, severance plan or
arrangement, or other program or agreement on account of the Participant’s termination of employment with the Employing Company.
To the extent a Participant is entitled to any payment in lieu of notice on account of the Participant’s termination of employment
with the Employing Company under an employment agreement with the Employing Company, any Severance Benefits payable to a Participant
under this Plan will be reduced by such payment in lieu of notice. For the avoidance of doubt, any provisions covering the treatment
of equity awards on account of the Participant’s termination of employment with the Employing Company under any offer letter,
employment agreement, severance plan or arrangement, or other program or agreement shall remain in effect.

 

Section 3.03           End
of Participation

 

An individual shall
cease to be a Participant on the date on which the individual ceases to be an employee of the Employing Company other than as a
result of a Qualifying Termination. A Participant may discontinue his or her status as a Participant at any time by a prospectively
or immediately effective written document that is delivered to the Committee in the manner specified in Section 6.05.
The Committee may, by resolution, discontinue an individual’s status as a Participant; provided, however, that
no such discontinuance shall become effective (i) until such Participant has been given eighteen (18) months’ advance
notice of such discontinuation, or (ii) during the period beginning on the effective date of a Change of Control and ending
on the twenty-four (24)-month anniversary after the effective date of such Change of Control. In the event that an individual incurs
a Qualifying Termination while still a Participant, such individual shall remain a Participant until all compensation and benefits
required to be provided to the Participant under the terms of the Plan on account of such Qualified Termination have been so provided.

 

    4

    

    

 

Article 4

SEVERANCE
BENEFITS

 

Section 4.01           Qualifying
Termination

 

(a)            Severance
Benefits. Upon a Qualifying Termination, a Participant will be eligible to receive an amount equal to:

 

(i)            the
Participant’s Base Salary through the date of the Participant’s Separation from Service, to be paid as soon as reasonably
practicable after such Separation from Service; plus

 

(ii)           subject
to the Participant’s compliance with Section 4.01(b), a pro rata portion of any quarterly and annual non-equity
bonus payouts under any non-equity incentive-based compensation plans then in effect, calculated as the greater of the Target Bonus
Amount for the year of the Qualifying Termination, the projected performance that would have been achieved as of the Change of
Control if the Qualifying Termination occurs in the year of the Change of Control, or the actual performance for the year of the
Qualifying Termination, provided, however, any such pro rata bonus payable in the year of a Change of Control shall be offset
by the amount of any bonus the Participant received at or around the closing of the Change of Control, shall be subject to any
applicable deductions and withholdings, and shall be payable at the same time and in the same manner that incentive bonus payments
are made to current employees of the Company, but no later than March 15th of the year following the year of the
Separation from Service; plus

 

(iii)          subject
to the Participant’s compliance with Section 4.01(b), (A) for Tier 2 Participants, eighteen (18) months
of such Participant’s Base Salary plus 1.5 times such Participant’s Target Bonus Amount, or (B) for Tier 3 Participants,
twelve (12) months of such Participant’s Base Salary plus one (1) times such Participant’s Target Bonus Amount.
The amount under this Section 4.01(a)(iii) shall be paid to the Participant in equal monthly installments, in accordance
with the Employing Company’s customary payroll practices and subject to any applicable deductions and withholdings, over
the twelve (12) months, following the date of the Participant’s Separation from Service (unless another payment period is
required under Code Section 409A, and except as provided in Section 4.02(e) and subject to the requirements
of Section 4.02(d)); plus

 

    5

    

    

 

(iv)          subject
to the Participant’s compliance with Section 4.01(b), provided the Participant elects coverage pursuant to the
provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Participant and
covered dependents shall, at the expense of the Company, be entitled to continued participation pursuant to COBRA in such medical
and dental coverage in which the Participant and covered dependents were participating immediately prior to the Participant’s
Qualifying Termination, which (A) for Tier 2 Participants, shall last for eighteen (18) months, or (B) for Tier 3 Participants,
shall last for twelve (12) months; and

 

(v)          subject
to the Participant’s compliance with Section 4.01(b), six (6) months outplacement services.

 

(b)            Release.
As a condition of receiving the Severance Benefits, (i) the Participant must timely execute and deliver to the Company a general
release and waiver of claims (in a form reasonably acceptable to the Company and in compliance with local laws) within forty-five
(45) days of the Participant’s Separation from Service, (ii) the Participant must not revoke such release, (iii) the
Participant must return all Company property held by such Participant, and (iv) the Participant must comply with the terms
set forth in the release and any restrictive covenants or other similar obligations set forth in any Company policy or any employment,
consulting or other services, confidentiality, intellectual property, non-competition, non-disparagement or other similar agreement.
Notwithstanding anything to the contrary in Section 4.01(a), any payment that would otherwise have been made but that
is conditioned upon the execution and effectiveness of the release shall not be made or provided until the sixtieth (60th) day
following the date of such Qualifying Termination. In the event the Participant breaches one or more of such restrictive covenants,
the Participant will forfeit any such Severance Benefits that have not been paid or provided to the Participant and will repay
to the Company the amount (or equivalent cash value) of any such Severance Benefit that has been paid to the Participant.

 

Section 4.02            Code
Section 409A

 

(a)            To
the extent necessary to ensure compliance with Code Section 409A, the provisions of this Section 4.02 shall govern
in all cases over any contrary or conflicting provision in the Plan. It is the intent of the Company that this Plan comply with
the requirements of Code Section 409A and all guidance issued thereunder by the U.S. Internal Revenue Service with respect
to any nonqualified deferred compensation subject to Code Section 409A. The Plan shall be interpreted and administered to
maximize the exemptions from Code Section 409A and, to the extent the Plan provides for deferred compensation subject to Code
Section 409A, to comply with Code Section 409A and to avoid the imposition of tax, interest, and/or penalties upon any
Participant under Code Section 409A.

 

(b)            The
Company does not, however, assume any economic burdens associated with Code Section 409A. Although the Company intends to
administer the Plan to prevent taxation under Code Section 409A, it does not represent or warrant that the Plan complies with
any provision of federal, state, local, or non-U.S. law. The Company, its affiliates, and their respective directors, officers,
employees, and advisers will not be liable to any Participant (or any other individual claiming a benefit through the Participant)
for any tax, interest, or penalties the Participant may owe as a result of participation in the Plan. Neither the Company nor any
of its affiliates have any obligation to indemnify or otherwise protect any Participant from any obligation to pay taxes under
Code Section 409A.

 

    6

    

    

 

(c)            The
right to a series of payments under the Plan will be treated as a right to a series of separate payments. Each such payment that
is made within two and a half (2-1⁄2) months following the end of the calendar year that contains the date of the Participant’s
Separation from Service is intended to be exempt from Code Section 409A as a short-term deferral within the meaning of Code
Section 409A. Each such payment that is made later than two and a half (2-1⁄2) months following the end of the year
that contains the date of the Participant’s Separation from Service is intended to be exempt under the two-times exception
of Treasury Reg. § 1.409A-1(b)(9)(iii), up to the limitation on the availability of that exception specified in the regulation.
Then, each payment that is made after the two-times exception ceases to be available shall be subject to delay, as necessary, in
accordance with Section 4.02(e) below.

 

(d)            To
the extent necessary to comply with Code Section 409A, in no event may a Participant, directly or indirectly, designate the
taxable year of payment. In particular, to the extent necessary to comply with Code Section 409A, if any payment to a Participant
under this Plan is conditioned upon the Participant’s executing and not revoking a release and if payment could be made or
could commence in more than one taxable year depending on when the Participant executes the release, the payment will be made in
the later taxable year.

 

(e)            To
the extent necessary to comply with Code Section 409A, references in this Plan to “termination of employment”
or “terminates employment” (and similar references) shall have the same meaning as Separation from Service, and no
payment subject to Code Section 409A that is payable upon a termination of employment shall be paid unless and until (and
not later than applicable in compliance with Code Section 409A) the Participant incurs a Separation from Service. In addition,
if the Participant is a “specified employee” within the meaning of Code Section 409A(a)(2)(B)(i) at the time
of his or her Separation from Service, any nonqualified deferred compensation subject to Code Section 409A that would otherwise
have been payable on account of, and within the first six (6) months following, the Participant’s Separation from Service,
and not by reason of another event under Code Section 409A(a)(2)(A), will become payable on the first business day after six
(6) months following the date of the Participant’s Separation from Service or, if earlier, the date of the Participant’s
death.

 

Section 4.03           Code
Section 280G

 

Notwithstanding anything
to the contrary in this Plan, to the extent that the Severance Benefits provided under this Plan and any payments and benefits
provided to a Participant or for a Participant’s benefit under any other Company plan or agreement (collectively, the “Payments”)
would be subject to the excise tax (the “Excise Tax”) imposed under Code Section 4999, the Payments shall
be reduced to the extent necessary so that no portion thereof shall be subject to the Excise Tax, but only if, by reason of such
reduction, the net after-tax benefit received by the Participant shall exceed the net after-tax benefit that would be received
by the Participant if no such reduction was made.

 

    7

    

    

 

Article 5

AMENDMENT AND TERMINATION

 

This Plan shall continue
until terminated by the Committee upon eighteen (18) months’ notice, provided that if a Change of Control occurs while this
Plan is in effect, this Plan will continue to remain in effect during the period beginning on the effective date of the Change
of Control and ending on the twenty-four (24)-month anniversary after the effective date of such Change of Control and, subject
to the continued provision of compensation and benefits for Participants under Section 3.03, will automatically terminate
on such twenty-four (24)-month anniversary unless otherwise extended by the Committee.

 

Subject to the next
sentence, the Committee shall have the right at any time and from time to time, by instrument in writing, to amend, modify, alter,
or terminate the Plan in whole or in part. Notwithstanding the foregoing or anything to the contrary in this Plan, the Committee
may not amend, modify, alter, or terminate this Plan so as to adversely affect payments or benefits then payable to a Participant
under the Plan, except to the minimum extent required to comply with any applicable law, (i) without providing eighteen (18)
months’ advance notice, or (ii) during the period beginning on the effective date of a Change of Control and ending
on the twenty-four (24)-month anniversary after the effective date of such Change of Control.

 

Article 6

MISCELLANEOUS

 

Section 6.01           Participant
Rights

 

Except to the extent
required or provided for by mandatorily imposed law as in effect and applicable hereto from time to time, neither the establishment
of the Plan, nor any modification thereof, nor the creation of any fund or account, nor the payment of any benefits, shall be construed
as giving to any Participant or other person any legal or equitable right against the Company or the Employing Company, or any
officer or employee thereof, or the Board or the Committee, except as herein provided; nor shall any Participant have any legal
right, title, or interest in the assets of the Company or the Employing Company, except in the event and to the extent that benefits
may actually be payable to him or her hereunder. This Plan shall not constitute a contract of employment nor afford any individual
any right to be retained or continued in the employ or service of the Company or the Employing Company or in any way limit the
right of the Company or the Employing Company to discharge any of its employees or service providers, with or without cause. Participants
have no right to receive any payments or benefits that the Company or the Employing Company is prohibited by applicable law from
making.

 

    8

     

    

 

Section 6.02           Committee
Authority

 

(a)            The
Committee will administer the Plan and have the full authority and discretion necessary to accomplish that purpose, including,
without limitation, the authority and discretion to:

 

(i)            resolve
all questions relating to the eligibility of Participants;

 

(ii)           determine
the amount of benefits, if any, payable to Participants under the Plan and determine the time and manner in which such benefits
are to be paid;

 

(iii)          engage
any administrative, legal, tax, actuarial, accounting, clerical, or other services it deems appropriate in administering the Plan;

 

(iv)          construe
and interpret the Plan, supply omissions from, correct deficiencies in, and resolve inconsistencies or ambiguities in the language
of the Plan, resolve inconsistencies or ambiguities between the provisions of this document, and adopt rules for the administration
of the Plan which are not inconsistent with the terms of the Plan document;

 

(v)            compile
and maintain all records it determines to be necessary, appropriate, or convenient in connection with the administration of the
Plan; and

 

(vi)          resolve
all questions of fact relating to any matter for which it has administrative responsibility.

 

(b)            The
Committee shall perform all of the duties and may exercise all of the powers and discretion that the Committee deems necessary
or appropriate for the proper administration of the Plan, including, but not limited to, delegation of any of its duties to one
or more authorized officers. All references to the authority of the Committee in this Plan shall be read to include the authority
of any party to which the Committee delegates such authority.

 

(c)            Any
failure by the Committee to apply any provisions of this Plan to any particular situation shall not represent a waiver of the Committee’s
authority to apply such provisions thereafter. Every interpretation, choice, determination, or other exercise of any power or discretion
given either expressly or by implication to the Committee shall be final, conclusive, and binding upon all parties having or claiming
to have an interest under the Plan or otherwise directly or indirectly affected by such action, without restriction, however, on
the right of the Committee to reconsider and re-determine such action.

 

(d)            Any
decision rendered by the Committee and any review of such decision shall be limited to determining whether the decision was so
arbitrary and capricious as to be an abuse of discretion. The Committee may adopt such rules and procedures for the administration
of the Plan as are consistent with the terms hereof.

 

Section 6.03            Successors

 

(a)            This
Plan shall bind any successor of or to the Company, its assets, or its businesses (whether direct or indirect, by purchase, merger,
consolidation, or otherwise), in the same manner and to the same extent that the Company would be obligated under this Plan if
no succession had taken place. In the case of any transaction in which a successor would not by the foregoing provision or by operation
of law be bound by this Plan, the Company shall require such successor expressly and unconditionally to assume and agree to perform
the Company’s obligations under this Plan, in the same manner and to the same extent that the Company would be required to
perform if no such succession had taken place.

 

    9

    

    

 

(b)            The
Plan shall inure to the benefit of and be binding upon and enforceable by the Company and the Participants and their personal and
legal representatives, executors, administrators, successors, assigns, heirs, distributees, devisees, and legatees. If a Participant
should die while any amount would still be payable to the Participant hereunder had the Participant continued to live, all such
amounts, unless otherwise provided herein, shall be paid in accordance with the terms of the Plan to the Participant’s estate.

 

Section 6.04            Gender
and Number

 

In determining the
meaning of the Plan, words imparting the masculine gender shall include the feminine and the singular shall include the plural,
unless the context requires otherwise. Unless otherwise stated, references to Sections are references to Sections of this Plan.

 

Section 6.05           Notices

 

Notices and all other
communications contemplated by this Plan shall be in writing and shall be deemed to have been duly given when personally delivered
or when mailed by U.S. registered or certified mail, return receipt requested, and postage prepaid or when sent by express U.S.
mail or overnight delivery through a national delivery service (or an international delivery service in the case of an address
outside the U.S.) with signature required. Notice to the Company, the Board, or the Committee shall be directed to the address
of the Company’s headquarters, and notice to a Participant shall be directed to the Participant at the most recent personal
residence on file with the Company.

 

Section 6.06            No
Duty to Mitigate

 

The Participant shall
not be required to mitigate the amount of any payment provided pursuant to this Plan, nor shall the amount of any such payment
be reduced by any compensation that the Participant receives from any other source, except as provided in this Plan.

 

Section 6.07           Withholding
of Taxes

 

The Company may withhold
from any amount payable or benefit provided under this Plan such federal, state, local, foreign, and other taxes as are required
to be withheld pursuant to any applicable law or regulation.

 

Section 6.08           Choice
of Law

 

All questions or disputes
concerning this Plan shall be governed by and construed in accordance with the internal laws of the State of Kentucky, without
giving effect to any choice of law or conflict of law provision or rule that would cause the application of the laws of any
jurisdiction other than the State of Kentucky.

 

    10

    

    

 

Section 6.09           Validity/Severability

 

If any provision of
this Plan or the application of any provision to any person or circumstances is held invalid, unenforceable, or otherwise illegal,
the remainder of this Plan and the application of such provision to any other person or circumstances will not be affected, and
the provision so held to be invalid or unenforceable will be reformed to the extent (and only to the extent) necessary to make
it enforceable or valid. To the extent any provisions held to be invalid or unenforceable cannot be reformed, such provisions are
to be stricken here from and the remainder of this Plan will be binding on the parties and their successors and assigns as if such
invalid or illegal provisions were never included in this Plan from the first instance.

 

Section 6.10          Waiver

 

No waiver by a Participant
or the Company at any time of any breach by the other party of, or compliance with, any condition or provision of this Plan to
be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the time or at any
prior or subsequent time.

 

Section 6.11           Source
of Payments

 

All payments provided
under this Plan, other than payments made pursuant to any Company employee benefit plan which provides otherwise, shall be paid
in cash from the general funds of the Company, and no special or separate fund shall be required to be established, and no other
segregation of assets required to be made, to assure payment. To the extent that any person acquires a right to receive payments
from the Company under this Plan, such right shall be no greater than the right of an unsecured creditor of the Company.

 

    11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00316-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00316-of-00352.parquet"}]]