Document:

exh_1022.htm

Exhibit 10.22

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (this “Agreement”) is made and entered into as of April 1, 2013 (the “Effective Date”), by and between Charles P. Hadeed (the “Executive”) and Transcat, Inc., an Ohio corporation (the “Company”).

 

WHEREAS, the Company desires to continue to employ the Executive on the terms and conditions set forth herein; and

 

WHEREAS, the Executive desires to continue to be employed by the Company on such terms and conditions;

 

NOW, THEREFORE, in consideration of the mutual covenants, promises and obligations set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

Section 1. Employment and Duties.

 

(a) Employment by the Company.  The Company hereby agrees to employ the Executive for the Term (as herein defined), and the Executive hereby agrees to render exclusive and part-time services in the capacity of the Executive Chairman of the Company (the “Executive Chairman”), subject to the control and direction of the Company’s Board of Directors (the “Board”).

 

(b) Duties/Authority.  The Executive shall have responsibility for assisting with strategic planning, acquisitions, investor relations and executive transition, subject to the control and direction of the Board.  The Executive’s duties hereunder shall be consistent with the duties, responsibilities, and authority generally incident to the position of Executive Chairman and such other reasonably related duties as may be assigned to him from time to time by the Board.

 

(c) Term of Employment.  The term of this Agreement shall commence on the Effective Date and shall terminate on June 28, 2014 (the “Term”), unless terminated earlier pursuant to Section 4 of this Agreement.  All compensation covered under this Agreement is intended to cover the Executive’s tenure as CEO (from April 1, 2013 to June 29, 2013) and the remaining period (from June 30, 2013 to June 28, 2014).

 

Section 2. Place of Performance.  The principal place of the Executive’s employment shall be the Company’s principal executive office, which is currently located at 35 Vantage Point Drive, Rochester, New York 14624; provided, however that the Executive may be required to travel on Company business during the Term.

 

Section 3. Compensation.

 

(a) Base Salary.  During the Term, the Company shall pay the Executive the annual rate of base salary set forth on Exhibit A for the respective periods set forth on Exhibit A, in periodic installments in accordance with the Company’s customary payroll practices, but no less frequently than monthly.  The Executive’s annual base salary, as in effect from time to time, is hereinafter referred to as “Base Salary.”

 

  

 

  

(b) Annual Bonus

 

(i) For fiscal year 2014 (i.e., April 1, 2013 through March 29, 2014), the Executive shall have the opportunity to earn an annual bonus (the “Annual Bonus”) equal to 65% of his Base Salary paid during fiscal year 2014, which is the sum of his base salary earned as CEO during fiscal year 2014 plus his Base Salary earned as Executive Chairman during fiscal year 2014, as set forth on Exhibit A (the “Annual Bonus”).  For fiscal year 2015 (i.e., March 30, 2014 through June 28, 2014), the opportunity to earn the Annual Bonus will be equal to 65% of the Executive’s Base Salary earned as Executive Chairman during fiscal year 2015.  The Annual Bonus for a fiscal year is based on achievement of the annual corporate target performance goals established by the Board for the fiscal year, provided that the Annual Bonus may be adjusted up or down, in accordance with the structure of the Company’s Performance Incentive Plan applicable for that fiscal year, as approved by the Compensation Committee of the Board (the “Compensation Committee”).

 

(ii)  The Annual Bonus, if any, in the amount determined by the Compensation Committee pursuant to Section 3(b)(i) will be paid to the Executive in accordance with the Company’s Performance Incentive Plan, consistent with the payment of bonuses to other executive officers of the Company under such Performance Incentive Plan, but no later than two and a half (2 1/2) months after the end of the applicable fiscal year.

 

(iii) Except as otherwise provided in Section 4, in order to be eligible to receive an Annual Bonus for fiscal year 2014 or fiscal year 2015 (as defined in Section (b)(i) above), the Executive must be employed by the Company on the last day of fiscal year 2014 and June 28, 2014, as applicable.

 

(c) Long-Term Incentive.  With respect to each fiscal year of the Company during the Term, the Executive shall be eligible to earn an annual long-term incentive award (an “LTIA”) under the Transcat, Inc. 2003 Incentive Plan, as Amended and Restated, or any successor plan (the “Incentive Plan”), for such fiscal year, as set forth on Exhibit A.  All other terms and conditions applicable to each such LTIA shall be determined by the Compensation Committee and shall be no less favorable than those that apply to other executive officers of the Company.

 

(d) Fringe Benefits and Perquisites.  During the Term, the Executive shall be entitled to fringe benefits and perquisites consistent with the practices of the Company, and to the extent the Company provides similar benefits or perquisites (or both) to similarly situated executives of the Company.  Notwithstanding the foregoing, during the Term, the Company shall provide the Executive with a club membership allowance of $5,000 per fiscal year and an annual financial planning allowance of $5,000 per fiscal year.  The Company will continue to provide supplemental long-term disability insurance to the Executive during the Term consistent with its past practice for the Executive in his previous position.

 

(e) Employee Benefits.  During the Term, the Executive shall be entitled to participate in all employee benefit plans, practices and programs maintained by the Company, as in effect from time to time (collectively, “Employee Benefit Plans”), to the extent that the Executive is eligible to participate in such Employee Benefit Plans under their respective terms and conditions, on a basis which is no less favorable than is provided to other similarly situated executives of the Company, to the extent consistent with applicable law and the terms of the applicable Employee Benefit Plan.  The Company reserves the right to amend or cancel any Employee Benefit Plan at any time in its sole discretion, subject to the terms of such Employee Benefit Plan and applicable law.

 

  

2

  

(f) Vacation.  During the Term, the Executive will be entitled to 5 weeks paid vacation.

 

(g) Business Expenses.  The Executive shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business, entertainment and travel expenses incurred by the Executive in connection with the performance of the Executive’s duties hereunder in accordance with the Company’s expense reimbursement policies and procedures.

 

(h) Indemnification.

 

(i) In the event that the Executive is made a party or threatened to be made a party to any action, suit, or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”), other than any Proceeding initiated by the Executive or the Company related to any contest or dispute between the Executive and the Company or any of its affiliates with respect to this Agreement or the Executive’s employment hereunder, by reason of the fact that the Executive is or was a director or officer of the Company, or any affiliate of the Company, or is or was serving at the request of the Company as a director, officer, member, employee or agent of another corporation or a partnership, joint venture, trust or other enterprise, the Executive shall be indemnified and held harmless by the Company to the maximum extent permitted under applicable law from and against any liabilities, costs, claims and expenses, including all costs and expenses incurred in defense of any Proceeding (including attorneys’ fees).

 

(ii) During the Term and for a period of six years thereafter, the Company or any successor to the Company shall purchase and maintain, at its own expense, directors’ and officers’ liability insurance providing coverage to the Executive on terms that are no less favorable than the coverage provided to other directors and senior officers of the Company.

 

(i) Clawback Provisions.  Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based or any other compensation paid to the Executive pursuant to this Agreement or any other agreement or arrangement with the Company which is subject to recovery under any law, government regulation or stock exchange listing requirement, will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement (or any policy adopted by the Company pursuant to any such law, government regulation or stock exchange listing requirement).

 

Section 4. Termination of Employment.  The Term and the Executive’s employment hereunder may be terminated by either the Company or the Executive at any time and for any reason; provided that, unless otherwise provided herein, either party shall be required to give the other party at least 90 days advance written notice of any termination of the Executive’s employment.  Upon termination of the Executive’s employment during the Term, the Executive shall be entitled to the compensation and benefits described in this Section 4 and shall have no further rights to any Base Salary, Annual Bonus, LTIA from the Company or any of its affiliates; provided, however, the Executive shall retain any outstanding equity awards that are vested on the Termination Date and shall be entitled to all retirement benefits provided by the Company to similarly situated executives of the Company.  Notwithstanding the foregoing, in event of any such termination of Employment, employee shall be entitled to receive normal compensation as Chairman of the Board.

 

(a) Termination for Cause or Without Good Reason.  The Term and the Executive’s employment hereunder may be terminated by the Company for Cause or by the Executive without Good Reason.  If the Executive’s employment is terminated by the Company for Cause or by the Executive without Good Reason, the Executive shall be entitled to receive:

 

  

3

  

(i) any accrued but unpaid Base Salary up to the Termination Date and any accrued but unused vacation as of the Termination Date, which shall be paid on the pay date immediately following the Termination Date (as defined in Section 4(f)) in accordance with the Company’s customary payroll procedures;

 

(ii) any earned but unpaid Annual Bonus with respect to any completed fiscal year immediately preceding the Termination Date, which shall be paid on the otherwise applicable payment date; provided that, if the Executive’s employment is terminated by the Company for Cause, then any such accrued but unpaid Annual Bonus shall be forfeited;

 

(iii) reimbursement for unreimbursed business expenses properly incurred by the Executive on or before the Termination Date, which shall be subject to and paid in accordance with the Company’s expense reimbursement policy;

 

(iv) such employee benefits, if any, as to which the Executive may be entitled under the Employee Benefit Plans as of the Termination Date; provided that, in no event shall the Executive be entitled to any payments in the nature of severance or termination payments pursuant to this Agreement except as specifically provided herein; and

 

(v) any earned but unpaid LTIA, subject to the terms and conditions of the LTIA and the Incentive Plan (Section 4(a)(i) through Section 4(a)(v) are referred to herein collectively as the “Accrued Amounts”).

 

(b) Termination Without Cause or for Good Reason.  The Term and the Executive’s employment hereunder may be terminated by the Executive for Good Reason or by the Company without Cause.  In the event of such termination, the Executive shall be entitled to receive the Accrued Amounts and, subject to the Executive’s compliance with Section 5, Section 6(a), Section 6(b), Section 6(c) and Section 7 of this Agreement and his execution and non-revocation of a release of claims in favor of the Company, its affiliates and their respective officers and directors in a form provided by the Company (the “Release”), the Executive shall be entitled to receive the following:

 

(i) payment of the Executive’s Base Salary in effect on the Termination Date, and benefits (to the extent that the Executive’s continued participation is possible under the general terms and provisions of such plans and programs) for a period through the last day of the Term (the “Termination Period”), subject to Section 16(b) of this Agreement;

 

(ii) payment of the Annual Bonus at target for the Termination Period;

 

(iii) accelerated vesting of any outstanding shares of restricted stock held by the Executive on the Termination Date;

 

(iv) accelerated vesting of any outstanding stock options held by the Executive on the Termination Date, and all stock options held by the Executive on the Termination Date shall remain exercisable until their applicable expiration dates (but in no event later than ten years following the date of grant of any such stock option); and

 

(v) accelerated vesting and payment of any outstanding unvested LTIAs to the extent such LTIAs are to be paid to the Executive in cash instead of shares of restricted stock or stock options.

 

  

4

  

(c) Termination Following a Change in Control.  In the event that the Executive’s employment is terminated during the 24-month period following a Change in Control of the Company, the Executive’s rights as a result of such termination shall be paid pursuant to the “Agreement for Severance Upon Change in Control” by and between the Company and the Executive, as amended and in effect of the Effective Date (the “CIC Agreement”) instead of pursuant to this Agreement if the CIC Agreement remains in effect on the date that the Executive’s employment is terminated.  “Change in Control” shall have the meaning given such term in the CIC Agreement.

 

(d) Death or Disability Termination.  The Executive’s employment hereunder shall terminate automatically upon the Executive’s death during the Term, and the Company may terminate the Executive’s employment on account of the Executive’s Disability.  If the Executive’s employment is terminated during the Term on account of the Executive’s death or the termination of the Executive’s employment on account of the Executive’s Disability, the Executive (or the Executive’s estate and/or beneficiaries, as the case may be) shall be entitled to receive the following:

 

(i) the Accrued Amounts;

 

(ii) a payment equal to the target Annual Bonus for the fiscal year in which the date of death or termination occurs, multiplied by a fraction, the numerator or which is the number of days in such fiscal year before the date of death or termination, and the denominator of which is the number of days in such fiscal year, to be paid as soon as administratively practicable following the Termination Date, but subject to Section 16(b) of this Agreement;

 

(iii) accelerated vesting of any outstanding shares of restricted stock held by the Executive on the date of death or Disability;

 

(iv) any unvested stock options held by the Executive on the date of death or Disability shall be forfeited, and the Executive’s designated beneficiary or, in the absence of such beneficiary, his duly qualified personal representative, may exercise any stock options that are vested on the date of death until the earlier of the applicable expiration date or the one-year anniversary of the Executive’s date of death; and

 

(v) accelerated vesting and payment of any outstanding unvested LTIAs to the extent such LTIAs are to be paid to the Executive in cash instead of shares of restricted stock or stock options.

 

For purposes of this Agreement, “Disability” shall mean the Executive is entitled to receive long-term disability benefits under the Company’s long-term disability plan, or if there is no such plan, the Executive’s inability, due to physical or mental incapacity, to substantially perform his duties and responsibilities under this Agreement for 180 days out of any consecutive 365-day period.  Any question as to the existence of the Executive’s Disability as to which the Executive and the Company cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to the Executive and the Company.  If the Executive and the Company cannot agree as to a qualified independent physician, each shall appoint such a physician and those two physicians shall select a third who shall make such determination in writing.  The determination of Disability made in writing to the Company and the Executive shall be final and conclusive for all purposes of this Agreement.

 

(e) Definitions.  For purposes of this Agreement, the following phrases or terms shall have the meanings indicated below:

  

5

  

(i) “Cause” shall mean: (1) the Executive’s willful failure to perform his duties (other than any such failure resulting from incapacity due to physical or mental illness); (2) the Executive’s willful failure to comply with any valid and legal directive of the Board; (3) the Executive’s willful engagement in dishonesty, illegal conduct or gross misconduct, which is, in each case, materially injurious to the Company or its affiliates; (4) the Executive’s embezzlement, misappropriation or fraud, whether or not related to the Executive’s employment with the Company; (5) the Executive’s conviction of or plea of guilty or nolo contendere to a crime that constitutes a felony (or state law equivalent) or a crime that constitutes a misdemeanor involving moral turpitude; (6) the Executive’s willful unauthorized disclosure of Confidential Information (as defined below); or (7) the Executive’s material breach of any material obligation under this Agreement or any other written agreement between the Executive and the Company.

 

(ii) For purposes of this Agreement, the term termination by Executive for “Good Reason” shall mean the occurrence of any of the following without Executive’s express written consent: (1) the assignment of duties to Executive materially inconsistent with Executive’s current authorities, duties, responsibilities and status; (2) any reduction in Executive’s title, position, or reporting lines; (3) the relocation of Executive to an office or location more than seventy-five (75) miles from the office or location of Executive’s work described in Section 2; (4) a requirement that Executive travel on Company business to a substantially greater extent than required; or (5) the reduction in Executive’s Base Salary as in effect.

 

(iii) No act or failure to act on the part of the Executive shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best interests of the Company.  Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company.

 

(iv) Termination of the Executive’s employment shall not be deemed to be for Cause unless and until the Company delivers to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the Board (after reasonable written notice is provided to the Executive and the Executive is given an opportunity, together with counsel, to be heard before the Board), finding that the Executive is guilty of the conduct described in the definition of Cause above.  Except for a failure, breach or refusal which, by its nature, cannot reasonably be expected to be cured, the Executive shall have ten business days from the delivery of written notice by the Company within which to cure any acts constituting Cause; provided however, that, if the Company reasonably expects irreparable injury from a delay of ten business days, the Company may give the Executive notice of such shorter period within which to cure as is reasonable under the circumstances, which may include the termination of the Executive’s employment without notice and with immediate effect.

 

(v) Any termination of the Executive’s employment hereunder by the Company or by the Executive during the Term (other than termination pursuant to Section 4(d) on account of the Executive’s death or Disability) shall be communicated by a written notice of termination (a “Notice of Termination”) to the other party hereto in accordance with Section 18 of this Agreement.  The Notice of Termination shall specify:

 

(1) the termination provision of this Agreement relied upon;

 

(2) to the extent applicable, the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated; and

 

(3) the applicable Termination Date.

 

  

6

  

(f) Termination Date.  The Executive’s “Termination Date” shall be:

 

(i) if the Executive’s employment hereunder terminates on account of the Executive’s death, the date of the Executive’s death;

 

(ii) if the Executive’s employment hereunder is terminated on account of the Executive’s Disability, the date that it is determined that the Executive has a Disability;

 

(iii) if the Company terminates the Executive’s employment hereunder for Cause, the date a Notice of Termination is delivered to the Executive;

 

(iv) if the Company terminates the Executive’s employment hereunder without Cause, the date specified in a Notice of Termination, which shall be no less than 30 days following the date on which the Notice of Termination is delivered;

 

(v) if the Executive terminates his employment hereunder with or without Good Reason, the date specified by the Executive in a Notice of Termination, which shall be no less than 30 days following the date on which the Notice of Termination is delivered; and

 

(vi) notwithstanding anything contained herein, to the extent required by Section 409A of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated and other official guidance issued thereunder (collectively, “Section 409A”), the date of termination shall occur on the date that the Executive incurs a “separation from service” within the meaning of Section 409A.

 

(g) Resignation of All Other Positions.  Upon termination of the Executive’s employment hereunder for any reason, the Executive agrees to resign, effective on the date of termination, from all positions that the Executive holds as an officer of the Company or any of its affiliates.

 

(h) No Mitigation.  The Executive shall not be required to mitigate any severance payable pursuant to this Agreement by seeking other employment or otherwise, nor shall such severance be reduced or offset by any compensation earned by the Executive as a result of his employment by another employer subsequent to the Termination Date.

 

Section 5. Cooperation.  The parties agree that certain matters in which the Executive will be involved during the Term may necessitate the Executive’s cooperation in the future.  Accordingly, following the termination of the Executive’s employment for any reason, to the extent reasonably requested by the Board, the Executive shall cooperate with the Company in connection with matters arising out of the Executive’s service to the Company; provided that, the Company shall make reasonable efforts to minimize disruption of the Executive’s other activities.  The Company shall reimburse the Executive for reasonable expenses incurred in connection with such cooperation and, to the extent that the Executive is required to spend substantial time on such matters, the Company shall compensate the Executive at an hourly rate based on the Executive’s Base Salary on the Termination Date.

 

Section 6. Confidentiality and Covenant against Competition.

 

(a) Non-Disclosure.  The Executive shall forever hold in a fiduciary capacity for the benefit of the Company all secret or confidential information, knowledge or data relating to the Company or any of its affiliated companies, and their respective businesses, which shall have been obtained by the Executive during the Executive’s employment by the Company or any of its affiliated companies and which shall not be public knowledge (other than as a result of a breach of this Section by the Executive) 

  

7

  

(“Confidential Information”).  The Executive shall not, without the prior written consent of the Company or except as required by law or in a judicial or administrative proceeding with subpoena powers, communicate or divulge Confidential Information to anyone other than the Company and those designated by it.

 

(b) Non-Competition.  The Executive will not, during the period of the Executive’s employment with the Company, and for a period of five years thereafter, directly or indirectly, (i) engage in any activity (as a principal, partner, director, officer, stockholder (except as permitted below), agent, employee, consultant or otherwise) or (ii) be financially interested in any entity materially engaged in any portion of the business of the Company.  Nothing contained herein shall prevent the Executive from owning beneficially or of record not more than 5% of the outstanding equity securities of any entity whose equity securities are registered under the Securities Act of 1933, as amended, or are listed for trading on any recognizable United States or foreign stock exchange or market.  The business of the Company shall be defined to include the activities described in the Company’s Annual Report on Form 10-K under Part I, Item 1 thereof.

 

(c) Non-Solicitation of Employees.  The Executive will not, during the period of the Executive’s employment with the Company and for a period of one year after the termination of the Executive’s employment with the Company for any reason, directly or indirectly, recruit, solicit or otherwise induce or attempt to induce any employee of the Company to leave the employment of the Company, nor hire any such employee at any enterprise with which the Executive is then affiliated.

 

(d) Enforceability of Provisions.  If any restriction set forth in this Section is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be interpreted to extend only over the maximum period of time, range of activities or geographic area as to which it may be enforceable, it being understood and agreed that by the execution of this Agreement, the parties hereto regard the restrictions herein as reasonable and compatible with their respective rights.

 

(e) Remedy for Breach.  The Executive hereby acknowledges that the provisions of this Section are reasonable and necessary for the protection of the Company and its respective subsidiaries and affiliates.  In addition, the Executive further acknowledges that the Company and its respective subsidiaries and affiliates will be irrevocably damaged if such covenants are not specifically enforced.  Accordingly, the Executive agrees that, in addition to any other relief to which the Company may be entitled, the Company will be entitled to seek and obtain injunctive relief (without the requirement of any bond) from a court of competent jurisdiction for the purposes of restraining the Executive from an actual or threatened breach of such covenants.  In addition, and without limiting the Company’s other remedies, in the event of any breach by the Executive of such covenants, the Company will have no obligation to pay any of the amounts that remain payable by the Company under Section 4 of this Agreement.

 

Section 7. Non-disparagement.  The Executive agrees and covenants that he will not at any time make, publish or communicate to any person or entity or in any public forum any defamatory or disparaging remarks, comments or statements concerning the Company or its businesses, or any of its employees, officers, and existing and prospective customers, suppliers, investors and other associated third parties.  This Section 7 does not, in any way, restrict or impede the Executive from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation or order.  The Executive shall promptly provide written notice of any such order to the Company.

 

  

8

  

Section 8. Acknowledgement.  The Executive acknowledges and agrees that the services to be rendered by him to the Company are of a special and unique character; that the Executive has obtained and will continue to obtain knowledge and skill relevant to the Company’s industry, methods of doing business and marketing strategies by virtue of the Executive’s employment; and that the restrictive covenants and other terms and conditions of this Agreement are reasonable and reasonably necessary to protect the legitimate business interest of the Company.  The Executive further acknowledges that the amount of his compensation reflects, in part, his obligations and the Company’s rights under Section 6 and Section 7 of this Agreement; that he has no expectation of any additional compensation, royalties or other payment of any kind not otherwise referenced herein in connection herewith; that he will not be subject to undue hardship by reason of his full compliance with the terms and conditions of Section 6 or Section 7 of this Agreement or the Company’s enforcement thereof.

 

Section 9. Governing Law: Jurisdiction and Venue.  This Agreement, for all purposes, shall be construed in accordance with the laws of New York without regard to conflicts of law principles. Any action or proceeding by either of the parties to enforce this Agreement shall be brought only in a state or federal court located in the State of New York, County of Monroe.  The parties hereby irrevocably submit to the exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such action or proceeding in such venue.

 

Section 10. Entire Agreement.  Unless specifically provided herein, this Agreement and the CIC Agreement contain all of the understandings and representations between the Executive and the Company pertaining to the subject matter hereof and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter.  The parties mutually agree that this Agreement can be specifically enforced in court and can be cited as evidence in legal proceedings alleging breach of this Agreement.  The execution of this Agreement shall not affect the Executive’s rights under the CIC Agreement.

 

Section 11. Modification and Waiver.  No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in writing and signed by the Executive and by the chair of the Compensation Committee.  No waiver by either of the parties of any breach by the other party hereto of any condition or provision of this Agreement to be performed by the other party hereto shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall the failure of or delay by either of the parties in exercising any right, power or privilege hereunder operate as a waiver thereof to preclude any other or further exercise thereof or the exercise of any other such right, power or privilege.

 

Section 12. Severability.

 

(a) Should any provision of this Agreement be held by a court of competent jurisdiction to be enforceable only if modified, or if any portion of this Agreement shall be held as unenforceable and thus stricken, such holding shall not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon the parties with any such modification to become a part hereof and treated as though originally set forth in this Agreement.

 

(b) The parties further agree that any such court is expressly authorized to modify any such unenforceable provision of this Agreement in lieu of severing such unenforceable provision from this Agreement in its entirety, whether by rewriting the offending provision, deleting any or all of the offending provision, adding additional language to this Agreement or by making such other modifications as it deems warranted to carry out the intent and agreement of the parties as embodied herein to the maximum extent permitted by law.

 

  

9

  

(c) The parties expressly agree that this Agreement as so modified by the court shall be binding upon and enforceable against each of them.  In any event, should one or more of the provisions of this Agreement be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions hereof, and if such provision or provisions are not modified as provided above, this Agreement shall be construed as if such invalid, illegal or unenforceable provisions had not been set forth herein.

 

Section 13. Captions.  Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the caption or heading of any section or paragraph.

 

Section 14. Counterparts.  This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.

 

Section 15. Tolling.  Should the Executive violate any of the terms of the restrictive covenant obligations articulated herein, the obligation at issue will run from the first date on which the Executive ceases to be in violation of such obligation.

 

Section 16. Section 409A.

 

(a) The compensation and benefits under this Agreement are intended to be exempt from or comply with the requirements of Section 409A, and this Agreement shall be administered and interpreted consistent with such intention.  Any payments under this Agreement that may be exempt from Section 409A either as involuntary separation pay or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible.  For purposes of Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment.  Any payments to be made under this Agreement upon a termination of employment shall only be made upon a “separation from service” under Section 409A.  Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Executive on account of non-compliance with Section 409A.

 

(b) Notwithstanding any other provision of this Agreement, if any payment or benefit provided to the Executive in connection with his termination of employment (other than by reason of death) is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A, then to the extent necessary to comply with Section 409A, such payment or benefit shall not be paid until the first payroll date to occur following the six-month anniversary of the Termination Date (the “Specified Employee Payment Date”).  The aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date shall be paid to the Executive in a lump sum on the Specified Employee Payment Date and thereafter, any remaining payments shall be paid without delay in accordance with their original schedule.

 

(c) Notwithstanding any other provision of this Agreement, if any payment or benefit provided to the Executive in connection with his termination of employment (other than by reason of death) is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A, and the payment or benefit is contingent upon the execution and non-revocation of the Release, and the period to execute and not revoke the Release crosses over from one calendar year into the following calendar year, then to the extent necessary to comply with Section 409A, such payment or benefit shall be made no earlier than the first day of the later calendar year.

 

  

10

  

(d) Any reimbursements subject to federal income tax to be made to the Executive under this Agreement shall be made no later than the end of the year following the year in which the expense was incurred, and the amount of the reimbursable expenses provided in one year shall not increase or decrease the amount of reimbursable expenses provided in a subsequent year.

 

Section 17. Successors and Assigns.  This Agreement is personal to the Executive and shall not be assigned by the Executive.  Any purported assignment by the Executive shall be null and void from the initial date of the purported assignment.  The Company may assign this Agreement to any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company.  This Agreement shall inure to the benefit of the Company and permitted successors and assigns.

 

Section 18. Notice.  Notices and all other communications provided for in this Agreement shall be in writing and shall be delivered personally or sent by registered or certified mail, return receipt requested, or by overnight carrier to the parties at the addresses set forth below (or such other addresses as specified by the parties by like notice):

 

If to the Company:

Transcat, Inc.

Attn:  Compensation Committee Chair

35 Vantage Point Drive

Rochester, New York 14624

If to the Executive:

Section 19. Withholding.  The Company shall have the right to withhold from any amount payable hereunder any federal, state and local taxes in order for the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation.

 

Section 20. Survival.  Upon the expiration or other termination of this Agreement, the respective rights and obligations of the parties hereto shall survive such expiration or other termination to the extent necessary to carry out the intentions of the parties under this Agreement.

 

Section 21. Acknowledgment of Full Understanding.  THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO THIS AGREEMENT.  THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY OF HIS CHOICE BEFORE SIGNING THIS AGREEMENT.

 

[Signature page follows.]

 

  

11

  

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

	 	 
	  	
TRANSCAT, INC.

 

	  	
By:

	
/s/ Alan H. Resnick

	  	
Alan H. Resnick

Chairman of Compensation Committee

	  	
EXECUTIVE

 

/s/ Charles P. Hadeed

	  	
Charles P. Hadeed

  

12

  

EXHIBIT A

	
Base Salary

 

	 	
$100,000 for the period commencing on April 1, 2013 and ending on June 29, 2013 (“First Quarter Fiscal 2014”)

 

$180,000 for the period commencing on June 30, 2013 and ending on March 29, 2014 (“Remainder Fiscal 2014”)

 

$60,000 for the period commencing March 30, 2014 and ending on June 28, 2014 (“Fiscal Year 2015”)

	 	 	 
	
Annual Bonus

	 	
$65,000 for First Quarter Fiscal 2014

 

$117,000 for Remainder Fiscal 2014

 

$39,000 for Fiscal Year 2015

	 	 	 
	
Long-Term Incentive Award (“LTIA”)

	 	
$308,000 for the period beginning April 1, 2013 and ending on March 29, 2014 (“Fiscal Year 2014”)

 

$66,000 for Fiscal Year 2015

 

 

 

 

 

 

 13EX-10.1

 Exhibit 10.1 
 DFC GLOBAL CORP. 
 THIRD AMENDMENT TO 

SECOND AMENDED AND RESTATED 
 CREDIT AGREEMENT 
 This THIRD AMENDMENT TO SECOND AMENDED AND RESTATED
CREDIT AGREEMENT (this “Third Amendment Agreement”) is dated June 25, 2013, and entered into by and among DFC GLOBAL CORP., a Delaware corporation, f/k/a DOLLAR FINANCIAL CORP.
(“Holdings”), DOLLAR FINANCIAL GROUP, INC., a New York corporation (“DFG” and together with any entity joined from time to time as a Borrower pursuant to the Credit Agreement referred to below,
collectively, the “US Borrowers” and each a “US Borrower”), NATIONAL MONEY MART COMPANY, an unlimited company organized under the laws of the Province of Nova Scotia, Canada (the
“NMM”), DOLLAR FINANCIAL U.K. LIMITED, a limited liability company incorporated under the laws of England and Wales with registered number 03701758 (“Dollar UK”), INSTANT CASH LOANS
LIMITED, a limited liability company incorporated under the laws of England with a registered number of 02685515 (“ICL” and together with Dollar UK, NMM and any entity joined from time to time as a Borrower pursuant to
the Credit Agreement referred to below, collectively, the “Non-US Borrowers” and each a “Non-US Borrower” and the Non-US Borrowers together with the US Borrowers, collectively, the
“Borrowers”), any entity joined from time to time as an Additional Borrower or as a Non-Loan Party Borrower pursuant to the Credit Agreement referred to below, WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking
association, as Administrative Agent and as Security Trustee for the Lenders under the Credit Agreement referred to below (in such capacity, the “Administrative Agent”), and the Lenders party hereto, comprising Required
Lenders under the Credit Agreement (the “Amendment Lenders”). 
 RECITALS 

WHEREAS, pursuant to that certain Second Amended and Restated Credit Agreement dated as of March 3, 2011, by and among
Holdings, the Borrowers, the Lenders, the Administrative Agent and various other parties thereto, as amended by a First Amendment to Second Amended and Restated Credit Agreement dated December 23, 2011 and a Second Amendment to Second Amended
and Restated Credit Agreement dated December 31, 2012 (as otherwise amended, restated, supplemented or otherwise modified form time to time, the “Credit Agreement”), the Lenders agreed, inter alia, to extend
various credit facilities to the Borrowers. Capitalized terms used herein without duplication shall have the same meanings set forth in the Credit Agreement. 
 WHEREAS, the Borrowers have requested and the Administrative Agent and the Amendment Lenders have agreed, upon the terms and subject to the conditions set forth herein, to those certain amendments
and modifications to the Credit Agreement set forth herein. 

 NOW, THEREFORE, in consideration of the premises and the agreements, provisions and
covenants herein contained, and for other credit accommodations given or to be given to the Borrowers by the Lenders from time to time, the parties hereto agree as follows: 
 1. Amendment to Section 1.1 of the Credit Agreement. 
 (a) The
following definitions are hereby added to Section 1.1 of the Credit Agreement to read in their entirety as follows: 

“Consolidated Liquidity”: for any period, determined on a consolidated basis, an amount equal to the sum of all
unrestricted and unencumbered cash and Cash Equivalents of any Loan Party. 
 “Commodity Exchange Act” means
the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute. 

“Excluded Swap Obligation” means, with respect to any Loan Party, any Swap Obligation if, and to the extent that, all or
a portion of the guaranty of such Loan Party of, or the grant by such Loan Party of a security interest to secure, such Swap Obligation (or any guaranty thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order
of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Loan Party’s failure for any reason to constitute an “eligible contract participant” as defined in the
Commodity Exchange Act and the regulations thereunder at the time the guaranty of such Loan Party or the grant of such security interest becomes effective with respect to such Swap Obligation. If a Swap Obligation arises under a master agreement
governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such guaranty or security interest is or becomes illegal. 

“Swap Obligation” means, with respect to any Loan Party, any obligation to pay or perform under any agreement, contract
or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act. 
 (b)
The following definitions set forth in Section 1.1 of the Credit Agreement are hereby amended and restated to read in their entirety as follows: 
 “Obligations”: the unpaid principal of and interest on (including interest accruing after the maturity of the Loans and Reimbursement Obligations and interest accruing after the filing of
any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to any Loan Party or Non-Loan Party Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such
proceeding) the Loans, Reimbursement Obligations, Cash Management Obligations and all other obligations and liabilities of any Loan Party to any Qualified Counterparty under a Specified Swap Agreement, in each case whether direct or indirect,
absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with, this Agreement, any other Loan Document, any Letter of Credit, any Specified Swap Agreement, Cash Management
Obligations 

  
 -2-

 
Agreement, or any other document made, delivered or given in connection herewith or therewith, whether on account of principal, interest, reimbursement obligations, fees, indemnities, costs,
expenses (including all fees, charges and disbursements of counsel to any Secured Party that are required to be paid by any Group Member pursuant hereto) or otherwise. Notwithstanding the foregoing, “Obligations” of any Loan Party shall
not include any Excluded Swap Obligation of such Loan Party. 
 “Specified Swap Agreement”: any Swap Agreement
between a Loan Party and a Qualified Counterparty, to the extent permitted under Section 7.12(a). 
 2. Amendment and
Restatement of the Borrowing Base Reports. Exhibit B-1 and Exhibit B-2 are hereby amended and restated in their entirety as Exhibit B to this Amendment Agreement. 
 3. Amendment to Section 2.2(b) of the Credit Agreement. Section 2.2(b) of the Credit Agreement is hereby amended to replace the four (4) Business Days’ notice requirement
contained therein with a three (3) Business Days’ notice requirement. 
 4. Amendment to Section 7.1(Financial
Condition Covenants) of the Credit Agreement. Section 7.1(a)(Consolidated Leverage Ratio) is hereby amended and restated to read in its entirety as follows: 
 (a) Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio as at the last day of any period of four consecutive fiscal quarters of Holdings ending with any fiscal quarter set forth
below to exceed the ratio set forth below opposite such fiscal quarter: 
  

					
	 Fiscal Quarter Ending
	  	Consolidated Leverage Ratio	 
		
	 June 30, 2013
	  	 	4.750 to 1.0	  
		
	 September 30, 2013
	  	 	4.750 to 1.0	  
		
	 December 31, 2013
	  	 	4.750 to 1.0	  
		
	 March 31, 2014
	  	 	4.750 to 1.0	  
		
	 June 30, 2014
	  	 	4.500 to 1.0	  
		
	 September 30, 2014, and thereafter
	  	 	3.625 to 1.0	  

 ; and provided that for purposes of this Section 7.1(a), the covenant set forth above
shall be determined on a Pro Forma Basis. 
 5. Amendment to Section 7.1(Financial Condition Covenants) of the Credit
Agreement. Section 7.1(b) (Consolidated Fixed Charge Coverage Ratio) is hereby amended and restated to read in its entirety as follows: 
 (b) Consolidated Fixed Charge Coverage Ratio. Permit the Consolidated Fixed Charge Coverage Ratio for any period of four consecutive fiscal quarters of Holdings ending with any fiscal quarter set
forth below to be less than the ratio set forth below opposite such fiscal quarter: 

  
 -3-

					
	 Fiscal Quarter Ending
	  	Consolidated Fixed
Charge Coverage Ratio	 
		
	 June 30, 2013
	  	 	1.40 to 1.00	  
		
	 September 30, 2013
	  	 	1.40 to 1.00	  
		
	 December 31, 2013
	  	 	1.40 to 1.00	  
		
	 March 31, 2014
	  	 	1.40 to 1.00	  
		
	 June 30, 2014
	  	 	1.50 to 1.00	  
		
	 September 30, 2014, and thereafter
	  	 	1.75 to 1.00	  

 ; and provided that for purposes of this Section 7.1(b), the covenant set forth above shall be
determined on a Pro Forma Basis. 
 6. Amendment to Section 7.1(Financial Condition Covenants) of the Credit
Agreement. Section 7.1 is hereby amended to add a new subsection (d) read in its entirety as follows: 
 (d)
Consolidated Liquidity. Permit the Consolidated Liquidity as at the last day of any calendar month to be less than $50,000,000, as measured upon the basis of the calculations provided in the Global Borrowing Base Report delivered pursuant to
Section 6.2(e). 
 7. Amendment to Section 7.2(g) (Indebtedness) of the Credit Agreement. Section 7.2(g)
is hereby amended by replacing the reference to “$40,000,000” with “$50,000,000”. 
 8. Amendment to
Section 7.6 (Restricted Payments) of the Credit Agreement. Section 7.6(d) is hereby amended and restated to read in its entirety as follows: 
 (d) so long as (i) immediately after giving effect to such transactions pursuant to this clause (d) no Default or Event of Default shall have occurred and be continuing and (ii) Holdings
and its Subsidiaries shall be in Pro Forma Compliance, DFG may pay dividends or distributions to permit Holdings to, and Holdings may, (x) acquire, purchase, redeem or retire any shares of its Capital Stock, whether now or hereafter
outstanding, or (y) repurchase, redeem, defease or otherwise retire any Indebtedness of Holdings permitted hereunder (and pay premiums, if any, in connection with, and fees and expenses of Holdings arising from, such repurchase, redemption,
defeasance or other retirement), in each case in one transaction or a series of transactions; and 
 9. Amendment to
Section 7.8(f) (Investments) of the Credit Agreement. Section 7.8(f) is hereby amended by replacing the reference to “$60,000,000” with “$75,000,000”. 

10. Amendment to Section 7.8(i) (Investments) of the Credit Agreement. Section 7.8(i) is hereby amended by replacing the
reference to “$15,000,000” with “$25,000,000”. 

  
 -4-

 11. Amendment to Section 7.12 (Swap Agreements) of the Credit Agreement.
Section 7.12 is hereby amended and restated to read in its entirety as follows: 
 7.12 Swap Agreements. Enter into
any Swap Agreement, except for Swap Agreements (a) which, at the time entered into, were entered into (i) to hedge or mitigate risks (including, without limitation, exposure to currency risk and commodity risk) to which any Borrower or any
Subsidiary has actual exposure (other than those in respect of Capital Stock), or (ii) in order to effectively cap, collar or exchange interest rates (from fixed to floating rates, from one floating rate to another floating rate or otherwise)
with respect to any interest-bearing liability or investment of any Borrower or any Subsidiary, or (b) which, at the time entered into, were entered into to mitigate the potential effects of dilution in connection with the issuance by Holdings
of convertible or exchangeable Indebtedness permitted under Section 7.2(n) hereof. 
 12. Amendment to
Section 11.21 (Application of Proceeds). Subsections (a) and (b) of Section 11.21 of the Credit Agreement are hereby amended and restated to read in its entirety as follows: 

(a) If an Event of Default shall have occurred and be continuing, the Administrative Agent may apply, at such time or times as the
Administrative Agent may elect, all or any part of Proceeds of or constituting US Collateral, whether or not held in any collateral account established by the Administrative Agent, in payment of the Obligations in the following order: 

(i) First, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts, including
attorney fees, payable to the Administrative Agent in its capacity as such, the Issuing Lender in its capacity as such and the Swingline Lender in its capacity as such (ratably among the Administrative Agent, the Issuing Lender and Swingline Lender
in proportion to the respective amounts described in this clause (i) payable to them); 
 (ii) Second, to payment of
that portion of the Obligations constituting fees, indemnities and other amounts (other than principal and interest) payable to the Lenders under the Loan Documents, including attorney fees (ratably among the Lenders in proportion to the respective
amounts described in this clause (ii) payable to them); 
 (iii) Third, to payment of that portion all other
Obligations, including cash collateral for any L/C Obligations then outstanding (ratably among the Secured Parties in proportion to the respective amounts payable to them); and 

(iv) Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to the applicable US Loan
Parties or as otherwise required by law. 
 In the event that any such Proceeds are insufficient to pay in full the items
described in clauses (i) through (iv) of this Section 11.21(a), the US Loan Parties shall remain liable, 

  
 -5-

 
jointly and severally, for any deficiency in Obligations. Excluded Swap Obligations with respect to any US Loan Party shall not be paid with amounts received from such US Loan Party or its
assets, but appropriate adjustments shall be made with respect to payments from other US Loan Parties to preserve the allocation to Obligations otherwise set forth above in this Section. 

(b) If an Event of Default shall have occurred and be continuing, the Administrative Agent may apply, at such time or times as the
Administrative Agent may elect, all or any part of Proceeds constituting Non-US Collateral, whether or not held in any collateral account established by the Administrative Agent, in payment of the Non-US Obligations in the following order:

 (i) First, to payment of that portion of the Non-US Obligations constituting fees, indemnities, expenses and other
amounts, including attorney fees, payable to the Administrative Agent in its capacity as such, the Issuing Lender in its capacity as such and the Swingline Lender in its capacity as such (ratably among the Administrative Agent, the Issuing Lender
and Swingline Lender in proportion to the respective amounts described in this clause (i) payable to them); 
 (ii)
Second, to payment of that portion of the Non-US Obligations constituting fees, indemnities and other amounts (other than principal and interest) payable to the Lenders under the Loan Documents, including attorney fees (ratably among the
Lenders in proportion to the respective amounts described in this clause (ii) payable to them); 
 (iii) Third, to
payment of that portion all other Non-US Obligations, including cash collateral for any L/C Obligations then outstanding (ratably among the Secured Parties in proportion to the respective amounts payable to them); and 

(iv) Last, the balance, if any, after all of the Non-US Obligations have been indefeasibly paid in full, to the Non-US Borrowers
or as otherwise required by law. 
 In the event that any such Proceeds are insufficient to pay in full the items described in
clauses (i) through (vi) of this Section 11.21(b), the Non-US Loan Parties shall remain liable, jointly and severally, for any deficiency in Non-US Obligations. Excluded Swap Obligations with respect to any Non-US Loan Party shall not
be paid with amounts received from such Non-US Loan Party or its assets, but appropriate adjustments shall be made with respect to payments from other Non-US Loan Parties to preserve the allocation to Obligations otherwise set forth above in this
Section. 
 13. Release and Transfer of Guarantor. On the effective date of this Third Amendment Agreement
(a) Dealers’ Financial Services, LLC (“DFS”) shall automatically, without further action, be released from its capacity as a Guarantor under the Loan Documents, (b) will cease to be a Loan Party, and (c) the Lien
granted by DFS over its assets to secure the Obligations will, without further action of any party, be released. DFS is hereby authorized, following the effective date of this Third Amendment Agreement, to file UCC-3 termination statements
terminating any UCC financing statements filed against it under the Loan Documents. 

  
 -6-

 14. Representations and Warranties. Each of the Loan Parties hereby represents and
warrants to the Administrative Agent and the Lenders that: (a) the representations and warranties set forth in the Credit Agreement and Loan Documents to which they are party are true and correct in all material respects as of the date hereof,
except those representations and warranties made as of a date certain which remain true and correct in all material respects as of such date (b) after giving effect to the amendments provided in this Third Amendment Agreement, there is no
Default or Event of Default under the Credit Agreement; (c) each Loan Party has the corporate, limited liability company power or other power necessary to execute, deliver this Third Amendment Agreement, to the extent each is a party thereto;
and (d) the execution, delivery and performance of this Third Amendment Agreement have been duly authorized by the applicable governing body of each Loan Party, and when executed, this Third Amendment Agreement will constitute the valid,
binding and enforceable obligations of each Loan Party subject to applicable bankruptcy, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity. 

15. No Consent or Waiver. Nothing in this Third Amendment Agreement nor any communication between the Administrative Agent, any
Lender, any Group Member or any of their respective officers, agents, employees or representatives shall be deemed to constitute a waiver of: (a) any Default or Event of Default, including, without limitation, an Default or Event of Default
arising as a result of the foregoing representation proving to be false or incorrect; or (b) any rights or remedies which the Administrative Agent or any Lender has against any Group Members under the Credit Agreement or any other Loan Document
and/or applicable law, with respect to any such Default or Event of Default. 
 16. Further Agreements and
Representations. Each of the Loan Parties hereby, jointly and severally: 
 (a) ratifies, confirms and
acknowledges that the Credit Agreement, as amended hereby, and all other Loan Documents to which it is party continue to be valid, binding and in full force and effect as of the date hereof, and enforceable in accordance with their terms subject to
applicable bankruptcy, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity; 
 (b) covenants and agrees to perform all of their respective obligations under the Credit Agreement, as amended hereby, and all other Loan Documents to which it is party; 

(c) acknowledges and agrees that as of the date hereof, no Loan Party has any defense, set-off, counterclaim or challenge
against the payment of any sums owing to the Administrative Agent or the Lenders or the enforcement of any of the terms of the Credit Agreement, as amended hereby, or any of the other Loan Documents to which it is party; 

(d) acknowledges and agrees that all Loans presently or hereafter outstanding under the Loan Documents shall continue to
be secured by the Collateral granted by it; 
 (e) acknowledges and agrees that this Third Amendment Agreement
does not constitute a novation of the Loans; 

  
 -7-

 (f) ratifies, confirms and continues all rights and remedies granted by the
Loan Parties to the Administrative Agent and the Lenders in the Loan Documents to which it is party; and 
 (g)
ratifies and confirms all waivers made by the Loan Parties in the Loan Documents to which it is party. 
 17. Conditions to
Effectiveness of this Third Amendment Agreement. The Administrative Agent’s and the Amendment Lenders’ obligations hereunder are conditioned upon the satisfaction by the Loan Parties of the following conditions precedent: 

(a) receipt by the Administrative Agent of this Third Amendment Agreement, duly executed by each of the Loan Parties and
Required Lenders; 
 (b) payment of the fees set forth in the fee letter relating hereto among the Borrowers,
the Administrative Agent and Wells Fargo Securities, LLC; 
 (c) payment of the reasonable fees, costs and
expenses of counsel to the Administrative Agent which have been invoiced through the date hereof, and 
 (d)
receipt by the Administrative Agent of such additional agreements, instruments, documents, writings and actions as the Administrative Agent and the Amendment Lenders may reasonably request. 

 

	18.	Miscellaneous. 

 (a) No reference to this Third Amendment Agreement need be made in the Credit Agreement or in any other Loan Document. 

(b) This Third Amendment Agreement shall bind and inure to the benefit of the parties hereto and their respective heirs,
executors, administrators, successors and assigns; provided, however, that no Loan Party shall assign its rights or obligations under this Third Amendment Agreement. 

(c) This Third Amendment Agreement shall be governed by and construed in accordance with the laws of the State of New
York without reference to the choice of law doctrine of the State of New York. 
 (d) This Third Amendment
Agreement may be executed in any number of counterparts with the same effect as if all the signatures on such counterparts appeared on one document and each such counterpart shall be deemed an original. Any signature on this Third Amendment
Agreement, delivered by any party by electronic transmission shall be deemed to be an original signature thereto. 
 (e) To the extent of any inconsistency between the terms and conditions of this Third Amendment Agreement and the terms and conditions of the Loan Documents, the terms and conditions of this Third
Amendment Agreement shall prevail. All terms and conditions of the Credit Agreement and any other Loan Documents not inconsistent herewith shall remain in full force and effect. 

  
 -8-

 (f) This Third Amendment Agreement is the entire agreement between the
parties relating to the subject matter hereof, incorporates or rescinds all prior agreements and understandings between the parties hereto relating to the subject matter hereof, cannot be changed or terminated orally or by course of conduct, and
shall be deemed effective as of the date it is accepted by the Administrative Agent. 
 (g) Except as expressly
set forth herein, neither the execution, delivery or performance of this Third Amendment Agreement, nor anything contained herein, shall be construed as or shall operate as a course of conduct, course of dealing or a consent to or waiver of any
provision of, or any right, power or remedy of the Administrative Agent or any Lender under, the Credit Agreement, any Loan Document or the agreements and documents executed in connection therewith. 

[remainder of page intentionally left blank] 

  
 -9-

 IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to Second
Amended and Restated Credit Agreement to be duly executed as of the date first above written. 
  

			
	 DFC GLOBAL CORP. f/k/a DOLLAR
 FINANCIAL CORP.

		
	By:	 	/s/ Randy Underwood
		 	Name: Randy Underwood
		 	 Title: Executive Vice President and Chief

          FinancialOfficer

  

			
	DOLLAR FINANCIAL GROUP, INC.
		
	By:	 	/s/ Randy Underwood
		 	Name: Randy Underwood
		 	 Title: Executive Vice President and Chief
           Financial Officer

  

			
	NATIONAL MONEY MART COMPANY
		
	By:	 	/s/ Randy Underwood
		 	Name: Randy Underwood
		 	 Title: Executive Vice President and Chief
           Financial Officer

  

			
	DOLLAR FINANCIAL U.K. LIMITED
		
	By:	 	/s/ Randy Underwood
		 	Name: Randy Underwood
		 	Title: Director

  

			
	INSTANT CASH LOANS LIMITED
		
	By:	 	/s/ Randy Underwood
		 	Name: Randy Underwood
		 	Title: Director

 Third Amendment To Second Amended And Restated Credit Agreement 

 
			
	 WELLS FARGO BANK, NATIONAL
 ASSOCIATION, as Administrative Agent and as
 Security Trustee

		
	By:	 	/s/ Matthew Siefer
		 	Name: Matthew Siefer
		 	Title: Senior Vice President

 Third Amendment To Second Amended And Restated Credit Agreement 

 
			
	 WELLS FARGO BANK, NATIONAL
 ASSOCIATION, as a Lender

		
	By:	 	/s/ Matthew Siefer
		 	Name: Matthew Siefer
		 	Title: Senior Vice President

 Third Amendment To Second Amended And Restated Credit Agreement 

 
			
	 BANK OF MONTREAL,

as a Lender

		
	By:	 	/s/ Richard Eldridge
		 	Name: Richard Eldridge
		 	Title: Director—Corporate Finance Division

 Third Amendment To Second Amended And Restated Credit Agreement 

 
			
	 BARCLAYS BANK PLC,

as a Lender

		
	By:	 	/s/ Alicia Borys
		 	Name: Alicia Borys
		 	Title: Vice President

 Third Amendment To Second Amended And Restated Credit Agreement 

 
			
	 CREDIT SUISSE AG, CAYMAN ISLANDS
 BRANCH, as a Lender

		
	By:	 	/s/ Kevin Buddhdew
		 	Name: Kevin Buddhdew
		 	Title: Authorized Signatory
		
	By:	 	/s/ Kevin Buddhdew
		 	Name: Kevin Buddhdew
		 	Title: Authorized Signatory

 Third Amendment To Second Amended And Restated Credit Agreement 

 
			
	 DEUTSCHE BANK AG, NEW YORK BRANCH,
 as a Lender

		
	By:	 	/s/ Dusan Lazarov
		 	Name: Dusan Lazarov
		 	Title: Director
		
	By:	 	/s/ Michael Getz
		 	Name: Michael Getz
		 	Title: Vice President

 Third Amendment To Second Amended And Restated Credit Agreement 

 
			
	 NOMURA INTERNATIONAL PLC,
 as a Lender

		
	By:	 	/s/ Sean P. Kelly
		 	Name: Sean P. Kelly
		 	Title: Managing Director

 Third Amendment To Second Amended And Restated Credit Agreement 

 
			
	 U.S. BANK NATIONAL ASSOCIATION,
 as a Lender

		
	By:	 	/s/ Stephen H. Smith
		 	Name: Stephen H. Smith
		 	Title: Vice President

 Third Amendment To Second Amended And Restated Credit Agreement 

 
			
	 SOCIETE GENERALE,

as a Lender

		
	By:	 	/s/ Edward J. Grimm
		 	Name: Edward J. Grimm
		 	Title:   Director

 Third Amendment To Second Amended And Restated Credit Agreement 

 ACKNOWLEDGMENT OF AND CONSENT AND AGREEMENT TO THIRD 

AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT 

June 25, 2013 
 Each of the
undersigned (each a “Guarantor”) hereby: (a) consent to the terms of the foregoing Third Amendment to Second Amended and Restated Credit Agreement (the “Third Amendment Agreement”), and ratify, affirm, reaffirm
and confirm all provisions of each Loan Document to which such Guarantor is a party (as to any Guarantor, the “Guarantor Documents”), including, but not limited to, any jury trial waivers contained therein; (b) certifies that:
(i) the Guarantor Documents to which it is a party secures all Obligations described therein; (ii) as of the date hereof, there exists no defenses, offsets or counterclaims to such Guarantor’s obligations under the related Guarantor
Documents; and (iii) as of the date hereof, no defaults exist under any such Guarantor Documents; and (c) remise, release, acquit, satisfy and forever discharge the Agent and the Lenders, their agents, employees, officers, directors,
attorneys and all others acting on behalf of or at the direction of the Agent and the Lenders (“Releasees”), of and from any and all manner of actions, causes of action, suit, debts, accounts, covenants, contracts, controversies,
agreements, variances, damages, judgments, claims and demands whatsoever, in law or in equity, which any of such parties ever had, now has or, to the extent arising from or in connection with any act, omission or state of facts taken or existing on
or prior to the date hereof, may have after the date hereof against the Releasees, arising from the Credit Agreement and the transactions contemplated thereby through the date hereof. Without limiting the generality of the foregoing, the
Guarantors’ waive and affirmatively agree not to allege or otherwise pursue any defenses, affirmative defenses, counterclaims, claims, causes of action, setoffs or other rights it does, shall or, to the extent arising from or in connection with
any act, omission or state of facts taken or existing on or prior to the date hereof, may have as of the date hereof arising from the Credit Agreement and the transactions contemplated thereby, including, but not limited to, the rights to contest
any conduct of the Agent and the Lenders or other Releasees pursuant thereto on or prior to the date hereof. Capitalized terms used above, but not defined herein, shall have the meanings given to such terms under the Third Amendment Agreement.

 [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] 

 IN WITNESS WHEREOF, each Guarantor has caused this Acknowledgment of and Consent and
Agreement to the Third Amendment to Second Amended and Restated Credit Agreement to be executed by its duly authorized officer as of the date first written above. 

 

			
	 DFC GLOBAL CORP. 
 DOLLAR FINANCIAL GROUP, INC.
 DOLLAR FINANCIAL U.S., INC.

DEALERS’ FINANCIAL HOLDINGS, INC.
 DFG
CANADA, INC.
 DFG INTERNATIONAL, INC.

DFG WORLD, INC.
 MONETARY MANAGEMENT OF
CALIFORNIA, INC.
 CHECK MART OF FLORIDA, INC.
 FINANCIAL EXCHANGE COMPANY OF OHIO, INC.
 MONETARY MANAGEMENT OF MARYLAND, INC.

DEALERS’ FINANCIAL SERVICES, LLC
 CHECK MART
OF LOUISIANA, INC.
 MONEY MART EXPRESS, INC.
 CHECK MART OF NEW MEXICO, INC.
 LOAN MART OF OKLAHOMA, INC.

CHECK MART OF PENNSYLVANIA, INC.
 FINANCIAL
EXCHANGE COMPANY OF PITTSBURGH, INC.
 FINANCIAL EXCHANGE COMPANY OF PENNSYLVANIA, INC.
 PACIFIC RING ENTERPRISES, INC.
 FINANCIAL EXCHANGE COMPANY OF VIRGINIA, INC.

MONEYMART, INC.

		
	By:	 	/s/ Randy Underwood
		 	Randy Underwood
		 	Executive Vice President and Chief Financial Officer

 Third Amendment To Second Amended And Restated Credit Agreement 

 
			
	 DOLLAR FINANCIAL U.K. LIMITED INSTANT
 CASH LOANS LIMITED

		
	By:	 	/s/ Randy Underwood
		 	Randy Underwood
		 	Director
	
	 NATIONAL MONEY MART COMPANY
 656790 B.C. LTD.
 MONEY MART CANADA INC.
 MONEY CARD CORP.
 S&R CANADA, LTD. f/k/a ADVANCE CANADA INC.

		
	By:	 	/s/ Randy Underwood
		 	Randy Underwood
		 	Chief Financial Officer
	
	 DOLLAR FINANCIAL LUXEMBOURG
  

		
	By:	 	/s/ Mark Prior
		 	Mark Prior
		 	Manager

 Third Amendment To Second Amended And Restated Credit Agreement 

 EXHIBIT B 
 FORM OF 
 BORROWING BASE REPORT 

This Borrowing Base Report (“Borrowing Base Report”) is delivered pursuant to Section 6.2(e) of the Second
Amended and Restated Credit Agreement, dated March 3, 2011, among DOLLAR FINANCIAL CORP., a Delaware corporation, DOLLAR FINANCIAL GROUP, INC., a New York corporation (“DFG”), NATIONAL MONEY MART COMPANY, an unlimited company
organized under the laws of the Province of Nova Scotia, Canada, DOLLAR FINANCIAL U.K. LIMITED, a limited liability company incorporated under the laws of England and Wales with registered number 03701758, INSTANT CASH LOANS LIMITED , a limited
liability company incorporated under the laws of England with a registered number of 02685515, the Lenders party thereto, and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent and as Security Trustee (as amended, restated, amended and
restated, supplemented, restructured or otherwise modified from time to time, the “Credit Agreement”). Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in
the Credit Agreement. 
 I am the duly elected, qualified and acting [Insert Title of Responsible Officer] of DFG and as such, I
am authorized to execute and deliver this Borrowing Base Report in the name and on the behalf of the US Borrowers and Non-US Borrowers. 
 I have reviewed and am familiar with the contents of this Borrowing Base Report. 

I have reviewed the terms of the Credit Agreement and the other Loan Documents and have made, or caused to be made under my supervision,
a review in reasonable detail of the financial condition of each of the Group Members as at the end of the calendar month ended [            ] (the “Calculation
Date”). 
 Attached hereto as Attachment I are the computations setting forth the Borrowing Base as at the
Calculation Date. 
 IN WITNESS WHEREOF, I have executed this Borrowing Base Report this
            day of [            ], 201[            ].

  

			
	DOLLAR FINANCIAL GROUP, INC.
		
	By:	 	 
		 	Name:
		 	Title:

  

 ATTACHMENT I

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00218-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00218-of-00352.parquet"}]]