Document:

ccfi_Ex10_40

		
			CONFIDENTIAL TREATMENT REQUESTED BY COMMUNITY CHOICE FINANCIAL INC. —CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE COMMISSION
		

		
			 
		

		
			Exhibit 10.40
		

		
			 
		

		
			SECOND AMENDMENT TO
		

		
			AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
		

		
			THIS SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Amendment”) dated as of MARCH 30, 2018 (the “Amendment Date”), is by and between IVY FUNDING NINE, LLC, a Delaware limited liability company (together with its successors and assigns, “Lender”) and CCFI FUNDING II, LLC, an Ohio limited liability company (“Debtor”).
		

		
			RECITALS
		

		
			WHEREAS, Lender and Debtor entered into that certain AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT dated as of APRIL 25, 2017 (as amended, modified or restated from time to time, the “Agreement”) pursuant to which Lender agreed to make the Credit Facility available to Debtor on the terms and conditions set forth therein; and
		

		
			WHEREAS, in connection with the Agreement, Debtor executed and delivered to Lender that certain PROMISSORY NOTE dated as of APRIL 25, 2017 (as subsequently amended, modified or restated) in the current principal amount of SIXTY MILLION AND NO/100 DOLLARS ($60,000,000.00) (the “Notational Amount”), payable to the order of Lender (as amended, modified or restated from time to time, the “Note”);
		

		
			WHEREAS, the Debtor has fully drawn on the Credit Facility and has requested an extension of the Maturity Date and amendment to certain other terms of the Credit Facility; and
		

		
			WHEREAS, the parties desire to amend the Agreement and modify the Note pursuant to the terms and conditions set forth herein;
		

		
			NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
		

		
			1.            Amendments and Additions to Definitions.  Capitalized terms used in this Amendment, to the extent not otherwise defined herein, shall have the same meanings as in the Agreement, as amended hereby. The below defined terms are added to Section 1 of the Agreement if not previously defined therein or, if previously defined in Section 1 of the Agreement, are hereby amended in their entirety to read as follows:
		

		
			“Eligible Consumer Loan” means, severally and collectively, all Medium-Term Eligible Consumer Loans and PRA Eligible Consumer Loans.
		

		
			“Installment Eligible Consumer Loan” means an installment Consumer Loan or Medium-Term Consumer Loan (whether secured or unsecured) made by Seller which is, and at the time of purchase by Debtor was classified as current on Parent’s and/or Seller’s financial statements under GAAP and meets certain other standards as set forth herein.  In general, a Consumer Loan shall be eligible if: (a) when made such Consumer Loan complies with the Underwriting Guidelines; (b) such Consumer Loan is pledged to Lender and in respect of which Lender has a perfected FIRST (1st) priority lien not subject to any other liens or claims of any kind (other than Permitted Encumbrances); (c) there is not a delinquency or other event of default at the time of Debtor’s purchase of the Consumer Loan; (d) such Consumer Loan is genuine and is the legal, valid, binding and enforceable obligation of the applicable Consumer Obligor; (e) to the knowledge of the Debtor, the Consumer Obligor has not asserted any setoff, defense or counterclaim with respect to such Consumer Loan, except as limited by bankruptcy, insolvency or similar laws of general application relating to the enforcement of creditors’ rights and except to the extent specific remedies may generally be limited by equitable principles; (f) there has not occurred any extension of the time for any payment on such Consumer Loan except in accordance with the Consumer Loan Documents evidencing such Consumer Loan, the Underwriting Guidelines or the Servicing Standards; (g) such Consumer Loan is evidenced by a Consumer Loan Note and is unconditionally payable in Dollars; (h) the annual percentage rate payable under the respective Consumer Loan Note for such Consumer Loan is not greater than the highest lawful rate permitted by applicable law; (i) to the knowledge of the Debtor, the Consumer Obligor has not filed a petition for bankruptcy or any other relief under the Bankruptcy Code or any 

		 

		

			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 1

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

other law relating to bankruptcy, insolvency, reorganization or relief of debtors, made an assignment for the benefit of creditors, had filed against such person any petition or other application for relief under the Bankruptcy Code or any such other law; (j) the Consumer Obligor is not an employee of Debtor or Seller, or any of their Affiliates; (k) the Consumer Obligor has not died or been declared incompetent; (l) the Consumer Obligor does not have any unsatisfactorily or unresolved prior negative financial experience with Seller, Debtor or any of their Affiliates; (m) to the knowledge of the Debtor, the Consumer Obligor is a resident of the state where such loan is made if required under applicable law; (m) such Consumer Loan is subject to a servicing agreement (which servicing agreement may be contained in the Sale Agreement) between Debtor and Seller in form and content satisfactory to Lender; (n) such Consumer Loan complies in all material respects with all applicable Consumer Financial Services Laws; (o) the Consumer Loan Documents are in the possession of Seller and a Collateral Agency Agreement has been executed by such Seller and Debtor in favor of Lender; (p) such Consumer Loan is serviced by a Seller in compliance with the Servicing Standards; and (q) an event of default under such Consumer Loan, except as permitted under the Underwriting Guidelines and/or Servicing Standards, shall not have occurred and be continuing.
		

		
			“Level 1 Trigger”  means the occurrence of one or more of the following:
		

		
			(i)           The PRA Concentration Percentage exceeds the PRA Concentration Limit; or
		

		
			(ii)          (1) Parent shall cease to Control Debtor, or (2) neither Michael Durbin nor Ted Saunders shall participate in the active management of Debtor’s day to day operations unless otherwise consented to in writing by Lender and a replacement officer, reasonably acceptable to Lender, has not been appointed within THIRTY (30) days thereafter.
		

		
			“Material Adverse Effect” means (a) a material adverse effect on any of: (i) the operations, business, assets, properties or financial condition of Debtor, Seller or Parent; (ii) the ability of Debtor to perform any of its material obligations under any Loan Document to which it is a party; (iii) the legality, validity or enforceability of this Agreement or any other Loan Document; (iv) the rights and remedies of Lender under any Loan Document, or (b) the Lender, after notice thereof to the Debtor: (i) is unsatisfied with the performance of the Collateral or financial condition of the Debtor; or (ii) reasonably foresees a material deterioration in either the Collateral or the financial condition of the Debtor.
		

		
			“Maturity Date” shall have the meaning set forth in Section 2(a)(i).
		

		
			“Medium-Term Consumer Loan” means a Virginia Medium-Term Consumer Loan or an installment Consumer Loan, auto-title Consumer Loan or line of credit  Consumer Loan (whether secured or unsecured) made by Seller which is, and at the time of purchase by Debtor was classified as current on Parent’s and/or Seller’s financial statements under GAAP and meets certain other standards as set forth herein.  In general, a Consumer Loan shall be eligible if: (a) when made such Consumer Loan complies with the Underwriting Guidelines; (b) such Consumer Loan is pledged to Lender and in respect of which Lender has a perfected FIRST (1st) priority lien not subject to any other liens or claims of any kind (other than Permitted Encumbrances); (c) there is not a delinquency or other event of default at the time of Debtor’s purchase of the Consumer Loan; (d) such Consumer Loan is genuine and is the legal, valid, binding and enforceable obligation of the applicable Consumer Obligor; (e) to the knowledge of the Debtor, the Consumer Obligor has not asserted any setoff, defense or counterclaim with respect to such Consumer Loan, except as limited by bankruptcy, insolvency or similar laws of general application relating to the enforcement of creditors’ rights and except to the extent specific remedies may generally be limited by equitable principles; (f) there has not occurred any extension of the time for any payment on such Consumer Loan except in accordance with the Consumer Loan Documents evidencing such Consumer Loan, the Underwriting Guidelines or the Servicing Standards; (g) such Consumer Loan is evidenced by a Consumer Loan Note and is unconditionally payable in Dollars; (h) the annual percentage rate payable under the respective Consumer Loan Note for such Consumer Loan is not greater than the highest lawful rate permitted by applicable law; (i) to the knowledge of the Debtor, the Consumer Obligor has not filed a petition for bankruptcy or any other relief under the Bankruptcy Code or any other law relating to bankruptcy, insolvency, reorganization or relief of debtors, made an assignment for the benefit of creditors, had filed against such person any petition or other application for relief under the Bankruptcy Code or any such other law; (j) the Consumer Obligor is not an employee of Debtor or Seller, or any of their Affiliates; (k) the Consumer Obligor has not died or been declared incompetent; (l) the Consumer Obligor does not have any unsatisfactorily or unresolved prior negative financial experience with Seller, Debtor or any of their Affiliates; (m) to the knowledge of the Debtor, the Consumer Obligor is a resident of the state where such loan is made if required under applicable law; (m) such Consumer Loan is subject to a servicing agreement (which servicing agreement may be contained in the Sale Agreement) between Debtor and Seller in form and content satisfactory to Lender; (n) such Consumer Loan complies in all material respects with all applicable Consumer Financial Services Laws; (o) the Consumer Loan Documents are in the possession of Seller and a Collateral Agency Agreement has been executed by such Seller and Debtor in favor of Lender; (p) such Consumer Loan is serviced by a Seller in compliance with the Servicing Standards; and (q) an event 

		 

		

			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 2

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

of default under such Consumer Loan, except as permitted under the Underwriting Guidelines and/or Servicing Standards, shall not have occurred and be continuing.
		

		
			“[***] Dividend Cap” shall mean the maximum amount of dividends and/or distributions distributable by Debtor to holders of its equity in any calendar [***], and, subject to the terms and conditions of this Agreement, shall be [***]; provided that the [***] Dividend Cap shall be increased in a single calendar [***] up to [***] to the extent that such dividends and/or distributions did not exceed the applicable [***] Dividend Cap for the immediately preceding [***]; provided, however, that in no event shall the [***] Dividend Cap exceed the lesser of [***] and the amount of the dividends rolled over from the immediately preceding [***].
		

		
			“PRA Concentration Limit” means [***].
		

		
			“Virginia Medium-Term Consumer Loan” means an open-end Consumer Loan made under applicable law by FIRST VIRGINIA FINANCIAL SERVICES, LLC, a Delaware limited liability company (“Virginia”), and purchased by Debtor from Virginia.
		

		
			2.            Deletions from Definitions.  The defined term “[***] Dividend Cap” is hereby deleted in its entirety.
		

		
			3.            Amendment to Consumer Loan Value Certificate.  Exhibit A of the Agreement is hereby amended to be replaced with the Exhibit A attached hereto.
		

		
			4.            Amendments to Section 2(a) of the Agreement.  Section 2(a) of the Agreement is hereby amended to:
		

		
			(a)          replace “or (ii) JANUARY 15, 2019” with “(ii) APRIL 4, 2019 or (iii) APRIL 4, 2021 (if the Maturity Date is extended pursuant to an Extension Request.”; and 
		

		
			(b)          add the following provision after the last sentence in Section 2(a):
		

		
			“Debtor shall have the option to request an extension of the Maturity Date to APRIL 4, 2021 (an “Extension Request”).  Debtor shall provide Lender with written notice of the Extension Request by not later than AUGUST 1, 2018 and Lender may in its sole discretion agree to the Extension Request on such terms and conditions as may be mutually agreed between Debtor and Lender.”
		

		
			5.            Amendment to Section 2(c) of the Agreement.  Section 2(c) of the Agreement is hereby amended to read as follows:
		

		
			“(c)         Determination of Advance Rate.  From the Effective Date through the Maturity Date, subject to the terms and conditions set forth herein, the Advance Rate shall be [***] of each Eligible Receivable.  Notwithstanding anything in this Agreement to the contrary: (i) Lender shall not be required to permit advances from and after MARCH 1, 2019; and (ii) in the event of the occurrence and continuation of a Level 1 Trigger, the Advance Rate then in effect shall be reduced by an additional [***].”
		

		
			6.            Amendment to Section 2(e) of the Agreement.  Section 2(e) of the Agreement is hereby amended to read as follows:
		

		
			“(e)         Prepayment.  Other than the prepayment of Indebtedness in connection with an Event of Default or an acceleration, if any Indebtedness under the Credit Facility is prepaid prior to [***], Debtor shall pay a make whole fee to Lender equal to the net present value of interest that would have accrued and been paid with respect to such prepayment (if such prepayment had not been made) from the date of such prepayment up to and including [***], using the Rate of interest set forth in the Note, discounted at the one year Treasury rate of 2.12% (the “Make Whole Fee”).  By way of example, a sample Make Whole Fee calculation which is attached hereto as Exhibit E.  Upon any prepayment as a result of acceleration or an Event of Default, any unpaid fees under Section 2(g) that would have been paid through the Maturity Date shall become due and payable immediately by Debtor to Lender.”
		

		
			7.            Amendments to Section 2(g) of the Agreement.  Section 2(g) of the Agreement is hereby amended:
		

		
			 
		

		
			 
		

		
			[***] CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION
		

		
			

		 

		

			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 3

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

		

		
			(a)          in Section 2(g)(i) to replace “THREE QUARTERS OF ONE PERCENT (0.75%) per annum” with “NINETY-FIVE HUNDREDTHS OF ONE PERCENT (0.95%) per annum”; and 
		

		
			(b)          to add the following provision as Section 2(g)(iii):
		

		
			“(iii)       [***]”
		

		
			8.            Amendment of Section 4(e) to the Agreement.  Section 4(e) of the Agreement is hereby amended to read as follows:
		

		
			“(e)         Minimum Assets.  Debtor shall maintain at all times the Minimum Assets.  On or before the SECOND (2nd) Business Day of each calendar week (and at such other times as Lender may require), Debtor shall submit to Lender evidence of compliance with the required Minimum Assets satisfactory to Lender in its reasonable discretion for each Business Day of the prior week.  “Minimum Assets” means that at all times as required, on a rolling TEN (10) Business Day average, the sum of all non-cash assets of Debtor as of such date, plus Debtor’s cash in the Collateral Deposit Account as of such date (including verified funds in transit to the Collateral Deposit Account) does not equal or exceed [***] of the then outstanding balance of the Credit Facility; provided that if on any Business Day the Minimum Asset requirement hereunder is not met (a “Minimum Asset Covenant Failure”), the Debtor shall be able to remedy such Minimum Asset Covenant Failure if within FIVE (5) Business Days the sum of all non-cash assets of Debtor as of such date, plus Debtor’s cash in the Collateral Deposit Account as of such date (including verified funds in transit to the Collateral Deposit Account) equals or exceeds [***] of the then outstanding balance of the Credit Facility.”
		

		
			9.            Amendment to Section 8(a)(i) of the Agreement.  Section 8(a)(i) of the Agreement is hereby amended to read as follows:
		

		
			“(i)         Within FORTY-FIVE (45) days after the end of each fiscal quarter of Debtor commencing with the first fiscal quarter of Debtor ending after the Effective Date: (1) internally prepared balance sheets, statements of operations and retained earnings and statements of cash flows of Debtor as at the end of such quarter; (2) a report of Debtor’s net bad debt for such quarter; (3) monthly static pool reports for each month in such quarter, detailing Debtor’s weighted average internal rate of return and annual percentage rate for all Consumer Loans and (4) cash on cash returns and weighted average days to collection, all in reasonable detail and, in the case of clause (1), certified by an authorized Person on behalf of Debtor as fairly presenting, in all material respects, the financial position of Debtor and as of the end of such quarter and the results of operations and cash flows of Debtor for such quarter, in accordance with GAAP, subject to the absence of footnotes and normal year-end adjustments;”
		

		
			10.          Amendment to Section 8(a)(vii) of the Agreement.  Section 8(a)(vii) of the Agreement is hereby amended to read as follows:
		

		
			“(vii)      As soon as possible, and in any event within ONE (1) Business Day after the occurrence of an Event of Default, a Default, a Parent Default or the occurrence of any event or development that has had or could reasonably be expected to have a Material Adverse Effect of the kind described in clause (a) of such definition only, the written statement of an authorized Person on behalf of Debtor setting forth the details of such Event of Default, Default, Parent Default or other event or development having a Material Adverse Effect of the kind described in clause (a) of such definition only and the action which Debtor and/or Parent (as the case may be) proposes to take with respect thereto;”
		

		
			11.          Amendment to Section 8(a) of the Agreement.  Section 8(a) of the Agreement is hereby amended to add the following provision as 8(a)(xiv):
		

		
			“(xiv)     As of the SEVENTH (7th),  FOURTEENTH (14th),  TWENTY-FIRST (21st) and LAST day of each month, provide weekly reports substantially in the form of Exhibit D attached hereto, of (i) the operations of the Parent and its Subsidiaries on a consolidated basis and (ii) cash basis net revenue of the Parent and its Subsidiaries, with such reports to be delivered to the Lender no later than THREE (3) Business Days following the 7th, 14th, 21st, and last date of each month.”
		

		
			 
		

		
			 
		

		
			[***] CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION
		

		
			

		 

		

			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 4

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

		

		
			12.          Amendment to Section 8(a) of the Agreement.  Section 8(a) of the Agreement is hereby amended to add the following provision as 8(a)(xv):
		

		
			 
		

		
			“(xv)      From and after the Effective Date, not permit Adjusted EBITDA of the Parent and its Subsidiaries for the year-to-day period ending on the last day of each month based upon the Parent’s interim monthly financial statements to be less than EIGHTY PERCENT (80%) of the Parent’s and its Subsidiaries’ projected Adjusted EBITDA based on the financial projections of the Parent and its Subsidiaries with respect to Parent’s 2018 fiscal year, as set forth in Exhibit C attached hereto, or 2019 fiscal year, as applicable, in each case, as certified by a financial officer pursuant to a certificate and delivered to the Lender no later than THIRTY (30) days following the last day of each month, accompanied by a report detailing, on a line-item basis, the computation of Adjusted EBITDA.  For the purposes of this Section 8(a)(xv), the term “Adjusted EBITDA” shall mean, with respect to any Person, “the net income (loss) attributable to such person, determined in accordance with GAAP, plus interest, taxes, depreciation, amortization, non-cash compensation, fees, expenses and charges associated with the renegotiation, restructuring and extension the Agreement, the Senior Secured Notes, the Note and the Parent Credit Agreement (including, without limitation, the fees and expenses of Stephens Inc., Ducera Partners LLC and Weil Gotshal & Manges LLP), in each of the foregoing cases, on a consolidated basis inclusive of Unrestricted Subsidiaries (as such term is defined in the Parent Credit Agreement) and eliminating any intra-company entries; provided, any advisory or other fees of the Investors, as well as any other one-time or nonrecurring expenses, shall only be added if approved by the Lender in its sole discretion; and provided further that with respect to the retail insurance business joint venture, MD-JV LLC, the income/loss shall be on a cash basis.”
		

		
			13.          Amendment to Section 8(a) of the Agreement.  Section 8(a) of the Agreement is hereby amended to add the following provision as 8(a)(xvi):
		

		
			“(xvi)     From and after the Effective Date, deliver to the Lender a certificate in the form of Exhibit B attached hereto, and as certified by a financial officer as to compliance with the covenant set forth in Sections 4(e) and 8(dd) hereof, which certificate shall also include a daily report setting forth a summary of PRA Eligible Consumer Loans (including principal amounts thereof and type of PRA Eligible Consumer Loans) sold to Debtor on such Business Day, by no later than 5:00 p.m. prevailing Eastern Time of the following Business Day following each determination thereof.”
		

		
			14.          Amendment to Section 8(q) of the Agreement.  Section 8(q) of the Agreement is hereby amended to:
		

		
			(a)          replace “OCTOBER 1, 2018” with “MARCH 1, 2019”; and
		

		
			[***]
		

		
			15.          Amendment to Section 8(w) of the Agreement.  Section 8(w) of the Agreement is hereby deleted in its entirety and replaced with “Reserved.”
		

		
			16.          Amendment to Section 8(x) of the Agreement.  Section 8(x) of the Agreement is hereby amended to read as follows:
		

		
			“(x)        Virginia Medium-Term Consumer Loans.  Debtor and Lender acknowledge that: (i) the Virginia Medium Term Consumer Loans are opened-ended loans and that, after the effective date for a Virginia Medium Term Consumer Loan, additional advances may be made with respect to such Virginia Medium-Term Consumer Loan (each, an “Additional Loan” and, collectively, the “Additional Loans”); and (ii) the Purchased Consumer Loans (as defined in the Master Sale Agreement) may include such Additional Loans.  To the extent applicable, Annex A to each Purchase and Sale Transaction Agreement (as defined in the Master Sale Agreement) will include Additional Loans, and the portion of the Purchase Price (as defined in the Master Sale Agreement) attributable to the Additional Loans shall be referred to as a “Purchase Price Adjustment.”  Notwithstanding anything to the contrary contained herein, Debtor may pay to Virginia such Purchase Price Adjustments for each Additional Loan.”
		

		
			 
		

		
			 
		

		
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			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 5

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

		

		
			 
		

		
			17.          Amendment to Section 8(y) of the Agreement.  Section 8(y) of the Agreement is hereby amended to read as follows:
		

		
			“(y)        New Collateral Loans. Other than the replacement of Collateral Loans in accordance with the terms of Section 7(c), Debtor shall not acquire any additional Collateral Loans: (i) from and after MARCH 1, 2019 or, if the Maturity Date is extended pursuant to an Extension Request, MARCH 1, 2021 or (ii) after the occurrence of a Parent Default.”
		

		
			18.          Amendments to Section 8(aa) of the Agreement.  Section 8(aa) of the Agreement is hereby amended to add the following provision after the last sentence in Section 8(aa):
		

		
			“Debtor shall provide updated loan data to the Backup Servicer on a weekly basis.  Lender shall have the right prior to APRIL 20, 2018 to require the replacement of the current backup servicer in its sole discretion.”
		

		
			19.          Amendment to Section 8(bb)(iv) of the Agreement.  Section 8(bb)(iv) of the Agreement is hereby amended to read as follows:
		

		
			“(iv)       Service the Consumer Loans in accordance with the Servicing Standards, the Sale Agreement and all applicable Consumer Financial Services Laws, ensure that no Seller’s Underwriting Guidelines shall be materially amended without the written consent of the Lender;”
		

		
			20.          Amendment to Section 8(bb)(vi) of the Agreement.  Section 8(bb)(vi) of the Agreement is hereby amended to replace “SEPTEMBER 2018” with “DECEMBER 2018”; and
		

		
			21.          Addition of Section 8(cc) to the Agreement.  Section 8(cc) of the Agreement is hereby added to the Agreement to read as follows:
		

		
			“(cc)       Eligible Consumer Loans.   Debtor shall use its best efforts to maximize the percentage of Eligible Consumer Loans that are Medium Term Loans to the extent that Medium Term Loans are available and will not create coverage defaults in other credit facilities of Affiliates of Debtor.”
		

		
			22.          Addition of Section 8(dd) to the Agreement.  Section 8(dd) of the Agreement is hereby added to the Agreement to read as follows:
		

		
			“(dd)      Minimum Cash.   Debtor shall maintain at all times the Minimum Cash.  On or before the SECOND (2nd) Business Day of each calendar week (and at such other times as Lender may require), Debtor shall submit to Lender evidence of compliance with the required Minimum Cash satisfactory to Lender in its reasonable discretion for each Business Day of the prior week.  “Minimum Cash” means that Debtor shall at all times as required hereunder maintain on a rolling TEN (10) Business Day average cash in the Collateral Deposit Account (including verified funds in transit to the Collateral Deposit Account) a minimum of [***]; provided, that if on any day the Minimum Cash requirement hereunder is not met (a “Minimum Cash Covenant Failure”), the Debtor shall be able to remedy such Minimum Cash Covenant Failure if Debtor maintains at least [***] in the Collateral Deposit Account in the Collateral Deposit Account (including verified funds in transit to the Collateral Deposit Account) within FIVE (5) Business Days.”
		

		
			23.          Addition of Section 8(ee) to the Agreement.  Section 8(ee) of the Agreement is hereby added to the Agreement to read as follows:
		

		
			“(ee)       Cash Flow Coverage Ratio.  Debtor shall maintain a Cash Flow Coverage Ratio of less than 3.0:1.0 for any month during the term of the Credit Facility.”
		

		
			 
		

		
			 
		

		
			 
		

		
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			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 6

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

		

		
			 
		

		
			24.          Addition of Section 8(ff) to the Agreement.  Section 8(ff) of the Agreement is hereby added to the Agreement to read as follows:
		

		
			“(ff)        PRA Eligible Consumer Loans.  Neither Debtor nor Parent shall create any Subsidiaries or other special purpose entity structures for the purpose of purchasing any PRA Eligible Consumer Loans.”
		

		
			25.          Addition of Section 8(gg) to the Agreement.  Section 8(gg) of the Agreement is hereby added to the Agreement to read as follows:
		

		
			“(gg)      Parent Senior Secured Notes.  Prior to MAY 30, 2018, Debtor shall cause Parent to use commercially reasonable efforts to negotiate a modification to the Parent’s senior secured notes due in 2019 and 2020 (the “Senior Secured Notes”) on terms reasonably satisfactory to Debtor and Lender with the holders of such senior secured notes.  Debtor shall provide a copy of Parent’s proposal delivered to certain of the holders of the Senior Secured Notes due in 2019 and to certain of the holders of the Senior Secured Notes due 2020 on or before APRIL 15, 2018.  Debtor shall keep Lender informed of the status of Parent’s negotiations with the holders of Parent’s Senior Secured Notes.”
		

		
			26.          Amendment to Section 10(d) of the Agreement.  Section 10(d) of the Agreement is hereby amended to read as follows:
		

		
			“(d)        Default Under Other Indebtedness.  The occurrence of (i) any “Event of Default” as defined in the Parent Credit Agreement; or (ii) any event which results in the acceleration of the maturity of any indebtedness for borrowed money in an aggregate principal amount in excess of ONE HUNDRED THOUSAND AND NO/100 DOLLARS ($100,000.00) owing by Debtor to any third party under any agreement or understanding.”
		

		
			27.          Addition of Section 29 to the Agreement.  Section 29 of the Agreement is hereby added to the Agreement to read as follows:
		

		
			“29.  Right of First Refusal.  For and in consideration of Lender’s agreement to provide the extension of the Credit Facility, Debtor hereby grants Lender a right to provide any additional financing to Debtor, which such right shall be limited to an additional THIRTY MILLION AND NO/100 DOLLARS ($30,000,000.00) of financing, for similarly situated transactions for so long as any Indebtedness under the Credit Facility is outstanding.  Debtor shall provide Lender with a proposal for such financing not less than FORTY-FIVE (45) days prior to the date of the proposed transaction and Lender must accept such proposal within FOURTEEN (14) days of such proposal or Debtor can pursue such proposed financing with another lender.”
		

		
			28.          Conditions Precedent.  The obligations of Lender under this Amendment shall be subject to the condition precedent that Debtor shall have executed and delivered to Lender this Amendment and the items set forth in Schedule 1, other than the conditions precedent set forth in Paragraphs 7 and 8 thereof which shall be delivered after the Amendment Date within the timeframes specified therein.  [***]
		

		
			29.          Payment of Fees and Expenses.  Debtor agrees to pay all reasonable attorneys’ fees of Lender in connection with the drafting and execution of this Amendment.
		

		
			30.          Ratifications.  Except as expressly modified and superseded by this Amendment, the Loan Documents are ratified and confirmed and continue in full force and effect.  The Loan Documents, as modified by this Amendment, continue to be legal, valid, binding and enforceable in accordance with their respective terms.  Without limiting the generality of the foregoing, Debtor hereby ratifies and confirms that all liens heretofore granted to Lender by Debtor were intended to, do and continue to secure the full payment and performance of the Indebtedness.  Debtor agrees to perform such acts and duly authorize, execute, acknowledge, deliver, file and record such additional assignments, security agreements, modifications or agreements to any of the foregoing, and such other agreements, documents and instruments as Lender may reasonably request in order to perfect and protect those liens and preserve and protect the rights of Lender in respect of all present and future Collateral.  The terms, conditions and provisions of the Loan Documents (as the same may have been amended, modified or restated from time to time) are incorporated herein by reference, the same as if stated verbatim herein.
		

		
			 
		

		
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			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 7

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

		

		
			 
		

		
			31.          Representations, Warranties and Confirmations.  Debtor hereby represents and warrants to Lender that (a) this Amendment and any other Loan Documents to be delivered under this Amendment (if any) have been duly executed and delivered by Debtor, are valid and binding upon Debtor and are enforceable against Debtor in accordance with their terms, except as limited by any applicable bankruptcy, insolvency or similar laws of general application relating to the enforcement of creditors’ rights and except to the extent specific remedies may generally be limited by equitable principles, (b) no action of, or filing with, any governmental authority is required to authorize, or is otherwise required in connection with, the execution, delivery and performance by Debtor of this Amendment or any other Loan Document to be delivered under this Amendment, (c) the execution, delivery and performance by Debtor of this Amendment and any other Loan Documents to be delivered under this Amendment do not require the consent of any other person and do not and will not constitute a violation of any laws, agreements or understandings to which Debtor is a party or by which Debtor is bound, and (d) no Default or Event of Default exists is continuing.
		

		
			32.          Release.  Debtor hereby acknowledges and agrees that there are no defenses, counterclaims, offsets, cross-complaints, claims or demands of any kind or nature whatsoever to or against Lender or the terms and provisions of or the obligations of Debtor under the Loan Documents and the other agreements, instruments and documents evidencing, securing, governing, guaranteeing or pertaining thereto, and that Debtor has no right to seek affirmative relief or damages of any kind or nature from Lender.  To the extent any such defenses, counterclaims, offsets, cross-complaints, claims, demands or rights exist, Debtor hereby waives, and hereby knowingly and voluntarily releases and forever discharges Lender and its predecessors, officers, directors, agents, attorneys, employees, successors and assigns, from all possible claims, demands, actions, causes of action, defenses, counterclaims, offsets, cross-complaints, damages, costs, expenses and liabilities whatsoever, whether known or unknown, such waiver and release being with full knowledge and understanding of the circumstances and effects of such waiver and release and after having consulted legal counsel with respect thereto.
		

		
			33.          Multiple Counterparts.  This Amendment may be executed in a number of identical separate counterparts, each of which for all purposes is to be deemed an original, but all of which shall constitute, collectively, one agreement.  Signature pages to this Amendment may be detached from multiple separate counterparts and attached to the same document and a telecopy or other facsimile of any such executed signature page shall be valid as an original.
		

		
			34.          Reference to Agreement.  Each of the Loan Documents, including the Agreement and any and all other agreements, documents, or instruments now or hereafter executed and delivered pursuant to the terms hereof containing a reference to the Agreement shall mean and refer to the Agreement as amended hereby.
		

		
			35.          Severability.  Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable.
		

		
			36.          Headings.  The headings, captions, and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.
		

		
			37.          Notices.  All notices or other communications required or permitted to be given pursuant to this Amendment or the other Loan Documents (unless otherwise expressly stated therein) shall be in writing and shall be considered as properly given if: (a) mailed by first class United States mail, postage prepaid, registered or certified with return receipt requested; (b) by delivering same in person to the intended addressee; or (c) by delivery to an independent third party commercial delivery service for same day or next day delivery and providing for evidence of receipt at the office of the intended addressee.  Notice so mailed shall be effective upon its deposit with the United States Postal Service or any successor thereto; notice sent by such a commercial delivery service shall be effective upon delivery to such commercial delivery service; notice given by personal delivery shall be effective only if and when received by the addressee; and notice given by other means shall be effective only if and when received at the office or designated place or machine of the intended addressee. For purposes of notice, the addresses of the parties shall be as set forth herein; provided, however, that either party shall have the right to change its address for notice hereunder to any other location within the continental United States by the giving notice to the other party in the manner set forth herein.
		

		
			38.          Construction; Venue; Service of Process.  THE LOAN DOCUMENTS HAVE BEEN EXECUTED AND DELIVERED IN THE STATE OF NEW YORK, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND SHALL BE PERFORMABLE BY THE PARTIES HERETO IN THE COUNTY IN GEORGIA WHERE LENDER’S ADDRESS SET FORTH ON LENDER’S SIGNATURE PAGE HEREOF IS LOCATED (THE “VENUE SITE”).  ANY ACTION OR PROCEEDING AGAINST DEBTOR UNDER OR IN CONNECTION WITH ANY OF THE LOAN DOCUMENTS MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT WITHIN THE VENUE SITE.  DEBTOR HEREBY IRREVOCABLY (A) SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF SUCH 

		 

		

			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 8

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

COURTS, AND (B) WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT OR THAT ANY SUCH COURT IS AN INCONVENIENT FORUM.  DEBTOR AGREES THAT SERVICE OF PROCESS UPON IT MAY BE MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, AT ITS ADDRESS SPECIFIED OR DETERMINED IN ACCORDANCE WITH THE PROVISIONS OF THIS AGREEMENT.  NOTHING IN ANY OF THE OTHER LOAN DOCUMENTS SHALL AFFECT THE RIGHT OF LENDER TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF LENDER TO BRING ANY ACTION OR PROCEEDING AGAINST DEBTOR OR WITH RESPECT TO ANY OF ITS PROPERTY IN COURTS IN OTHER JURISDICTIONS.  ANY ACTION OR PROCEEDING BY DEBTOR AGAINST LENDER SHALL BE BROUGHT ONLY IN A COURT LOCATED IN THE VENUE SITE.
		

		
			39.          Survival.  All representations and warranties made in this Amendment or in any document, statement, or certificate furnished in connection with this Amendment shall survive the execution and delivery of this Amendment, and no investigation by Lender or any closing shall affect the representations and warranties or the right of Lender to rely upon them.
		

		
			40.          Construction.  Debtor and Lender acknowledge that they had the opportunity to consult with legal counsel of its own choice and has been afforded an opportunity to review this Amendment and the other Loan Documents with its legal counsel of its own choice and that this Amendment and the other Loan Documents shall be construed as if jointly drafted by Debtor and Lender.
		

		
			41.          Independence of Covenants.  All covenants hereunder shall be given independent effect so that if a particular action or condition is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or be otherwise within the limitations of, another covenant shall not avoid the occurrence of an Event of Default if such action is taken or such condition exists.
		

		
			42.          WAIVER OF JURY TRIAL.  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, DEBTOR AND LENDER HEREBY IRREVOCABLY AND EXPRESSLY WAIVE ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF OR RELATING TO ANY OF THE LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY OR THE ACTIONS OF ANY PARTY IN THE NEGOTIATION, ADMINISTRATION, OR ENFORCEMENT THEREOF.  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
		

		
			43.          Patriot Act Notice.  Lender hereby notifies Debtor that pursuant to the requirements of Section 326 of the USA Patriot Act of 2001, 31 U.S.C. § 5318 (the “Act”), it is required to obtain, verify and record information that identifies Debtor, which information includes the name and address of Debtor and other information that will allow Lender to identify Debtor in accordance with the Act.  In addition, Debtor agrees to: (a) ensure that no Person who owns a controlling interest in or otherwise controls Debtor or any Subsidiary of Debtor is or shall be listed on the Specially Designated Nationals and Blocked Person List or other similar lists maintained by the OFAC, the Department of the Treasury or included in any Executive Order; (b) not to use or permit the use of proceeds of the Loan to violate any of the foreign asset control regulations of the OFAC or any enabling statute or Executive Order relating thereto; and (c) comply, or cause its Subsidiaries to comply, with the applicable laws.
		

		
			44.          Notice of Final Agreement.  It is the intention of Debtor and Lender that the following NOTICE OF FINAL AGREEMENT be incorporated by reference into each of the Loan Documents (as the same may be amended, modified or restated from time to time).  Debtor and Lender warrant and represent that the entire agreement made and existing by or among Debtor and Lender with respect to the Loan is and shall be contained within the Loan Documents, and that no agreements or promises exist or shall exist by or among, Debtor  and Lender that are not reflected in the Loan Documents.  By execution and delivery of this Amendment, Debtor acknowledges that Debtor has received a copy of this NOTICE OF FINAL AGREEMENT.
		

		
			 
		

		
			 
		

		
			NOTICE OF FINAL AGREEMENT
		

		
			THE AMENDMENT AND THE OTHER LOAN DOCUMENTS, AS AMENDED BY THIS AMENDMENT REPRESENT THE FINAL AGREEMENT BETWEEN AND AMONG THE PARTIES AND MAY NOT BE 

		 

		

			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 9

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN AND AMONG THE PARTIES.
		

		
			 
		

		
			 
		

		
			 
		

		
			REMAINDER OF PAGE LEFT INTENTIONALLY BLANK
		

		
			
		

		
			

		 

		

			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 10

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

		

		
			IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed as of the Amendment Date.
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						LENDER:

					
					
						 

					
					
						ADDRESS:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						IVY FUNDING NINE, LLC

					
					
						 

					
					
						22 W. Bryan Street, Suite 208

				
	
					
						 

					
					
						 

					
					
						Savannah, GA 31401

				
	
					
						By:

					
					
						s/ John C. Hooff, Jr

					
					
						 

					
					
						 

				
	
					
						Name:

					
					
						John C. Hooff, Jr

					
					
						 

					
					
						 

				
	
					
						Title:

					
					
						Managing Partner

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						DEBTOR:

					
					
						 

					
					
						ADDRESS:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						CCFI FUNDING II, LLC

					
					
						 

					
					
						6785 Bobcat Way, Suite 200

				
	
					
						 

					
					
						 

					
					
						Dublin, OH 43016

				
	
					
						By:

					
					
						/s Michael Durbin

					
					
						 

					
					
						 

				
	
					
						Name:

					
					
						Michael Durbin

					
					
						 

					
					
						 

				
	
					
						Title:

					
					
						Executive Vice President, Chief

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Financial Officer and Treasurer

					
					
						 

					
					
						 

				

		
			 
		

		
			CONSENT TO AND CONFIRMATION OF SELLERS ATTACHED
		

		
			 
		

		
			
		

		
			

		 

		

			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 11

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

		

		
			CONSENT TO AND CONFIRMATION OF COLLATERAL AGENCY AGREEMENT
		

		
			To induce Lender to execute the foregoing Amendment, each Seller below (a) agrees and consents to the execution and delivery of the Amendment and the terms thereof; (b) ratifies and confirms that all agreements and assurances granted, conveyed or otherwise provided to Lender under the Loan Documents; including, the COLLATERAL AGENCY AGREEMENT, are not released, diminished, impaired, reduced, or otherwise adversely affected by the Amendment; (c) agrees to perform such acts and duly authorize, execute, acknowledge and deliver such additional assurances and other documents, instruments and agreements as Lender may reasonably deem necessary or appropriate in order to create, perfect, preserve and protect those assurances; and (d) waives notice of acceptance of this consent and confirmation, which consent and confirmation binds each Seller and each Seller’s successors and assigns and inures to Lender and its successors and assigns.  The terms, conditions and provisions of the COLLATERAL AGENCY AGREEMENT (as the same may have been amended, modified or restated from time to time) are incorporated herein by reference, as if stated verbatim herein.
		

		
			Each Seller acknowledges and agrees that (a) notwithstanding the conditions to effectiveness set forth in this Amendment, Seller is not required by the terms of the Agreement or any other Loan Document to consent to the Amendment, and (b) nothing in the Amendment, or any other Loan Document shall be deemed to require the consent of the Sellers to any future waivers, amendments or modifications to the Loan Documents.
		

		
			EXECUTED as of Amendment Date.
		

		
			SELLER:
		

		
			BUCKEYE CHECK CASHING II, INC.
		

		
			BUCKEYE CHECK CASHING OF ALABAMA, LLC
		

		
			BUCKEYE CHECK CASHING OF ARIZONA, INC.
		

		
			BUCKEYE CHECK CASHING OF CALIFORNIA, LLC
		

		
			BUCKEYE CHECK CASHING OF FLORIDA, INC.
		

		
			BUCKEYE CHECK CASHING OF KENTUCKY, INC.
		

		
			BUCKEYE CHECK CASHING OF MICHIGAN, INC.
		

		
			BUCKEYE CHECK CASHING OF TENNESSEE, LLC
		

		
			BUCKEYE CHECK CASHING OF TEXAS, LLC
		

		
			BUCKEYE CHECK CASHING OF VIRGINIA, INC.
		

		
			BUCKEYE CHECK CASHING, INC.
		

		
			BUCKEYE COMMERCIAL CHECK CASHING OF FLORIDA, LLC
		

		
			BUCKEYE CREDIT SOLUTIONS, LLC
		

		
			BUCKEYE LENDING SOLUTIONS OF ARIZONA, LLC
		

		
			BUCKEYE LENDING SOLUTIONS, LLC
		

		
			BUCKEYE LENDING SOLUTIONS OF TENNESSEE, LLC
		

		
			BUCKEYE TITLE LOANS OF CALIFORNIA, LLC
		

		
			BUCKEYE TITLE LOANS OF TENNESSEE, LLC
		

		
			BUCKEYE TITLE LOANS OF VIRGINIA, LLC
		

		
			BUCKEYE TITLE LOANS, INC.
		

		
			CALIFORNIA CHECK CASHING STORES, LLC
		

		
			CASH CENTRAL OF ALABAMA, LLC
		

		
			CASH CENTRAL OF ALASKA, LLC
		

		
			CASH CENTRAL OF CALIFORNIA, LLC
		

		
			CASH CENTRAL OF DELAWARE, LLC
		

		
			CASH CENTRAL OF FLORIDA, LLC
		

		
			CASH CENTRAL OF HAWAII, LLC
		

		
			CASH CENTRAL OF IDAHO, LLC
		

		
			CASH CENTRAL OF KANSAS, LLC
		

		
			CASH CENTRAL OF LOUISIANA, LLC
		

		
			
		

		
			

		 

		

			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 12

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

		

		
			CASH CENTRAL OF MISSISSIPPI, LLC
		

		
			CASH CENTRAL OF MISSOURI LLC
		

		
			CASH CENTRAL OF NEVADA, LLC
		

		
			CASH CENTRAL OF NEW MEXICO LLC
		

		
			CASH CENTRAL OF NORTH DAKOTA, LLC
		

		
			CASH CENTRAL OF OHIO, LLC
		

		
			CASH CENTRAL OF OKLAHOMA, LLC
		

		
			CASH CENTRAL OF SOUTH CAROLINA, LLC
		

		
			CASH CENTRAL OF SOUTH DAKOTA, LLC
		

		
			CASH CENTRAL OF TENNESSEE, LLC
		

		
			CASH CENTRAL OF UTAH, LLC
		

		
			CASH CENTRAL OF VIRGINIA LLC
		

		
			CASH CENTRAL OF WASHINGTON, LLC
		

		
			CASH CENTRAL OF WISCONSIN, LLC
		

		
			CASH CENTRAL OF WYOMING, LLC
		

		
			CCF OF ALASKA, LLC
		

		
			CCF OF DELAWARE, LLC
		

		
			CCF OF HAWAII, LLC
		

		
			CCF OF MISSISSIPPI, LLC
		

		
			CCF OF NEVADA, LLC
		

		
			CCF OF NEW MEXICO LLC
		

		
			CCF OF MINNESOTA, LLC
		

		
			CCF OF NORTH DAKOTA, LLC
		

		
			CCF OF OKLAHOMA, LLC
		

		
			CCF OF WASHINGTON, LLC
		

		
			CCF OF WISCONSIN, LLC
		

		
			CCF OF WYOMING, LLC
		

		
			HOOSIER CHECK CASHING OF OHIO, LTD
		

		
			INSIGHT CAPITAL, LLC
		

		
			BENEFICIAL LENDING SOLUTIONS OF UTAH LLC
		

		
			QC FINANCIAL SERVICES OF CALIFORNIA, INC.
		

		
			FIRST VIRGINIA FINANCIAL SERVICES, LLC
		

			
					
						By:

					
					
						/s Michael Durbin

					
					
						 

					
					
						 

				
	
					
						Name:

					
					
						Michael Durbin

					
					
						 

					
					
						 

				
	
					
						Title:

					
					
						Executive Vice President,

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Chief Financial Officer and Treasurer

					
					
						 

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 13

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

		

		
			SCHEDULE I
		

		
			ADDITIONAL CONDITIONS PRECEDENT TO AMENDMENT
		

		
			1.            Evidence that the Parent Credit Agreement maturity date has been extended on terms reasonably satisfactory to the Lender
		

		
			2.            Review of this Amendment by the auditors of the Parent.
		

		
			3.            Ratification and approval of the terms of this Amendment by the Debtor and Parent.
		

		
			4.            Closing Certificate of Debtor in form acceptable to Lender.
		

		
			5.            Good standing certificate of Debtor.
		

		
			6.            Consent to and Confirmation of Collateral Agency Agreement executed by Sellers
		

		
			7.            Within FOURTEEN (14) days of the Amendment Date, Debtor shall provide Lender with its internal cash management policies.
		

		
			8.            Within THIRTY (30) days of the Amendment Date (or such later dated as the Lender may agree in its reasonable discretion), Debtor shall use commercially reasonable efforts to provide Lender with an executed Backup Servicing Agreement in form and content acceptable to Lender in its reasonable discretion.
		

		
			
		

		
			

		 

		

			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 14

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

		

		
			EXHIBIT A
		

		
			TO
		

		
			AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
		

		
			CONSUMER LOAN VALUE CERTIFICATE
		

		
			DATE:   _______________
		

		
			 
		

		
			Pursuant to that certain AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (as amended, modified or restated from time to time, the “Loan Agreement”) dated as of APRIL 25, 2017, between CCFI FUNDING II, LLC, a Ohio limited liability company (“Debtor”), and IVY FUNDING NINE, LLC, a Delaware limited liability company (together with it successors and assigns, “Lender”), Debtor has reviewed its activities for the month ending on _____________, and hereby represents and warrants to Lender that the information set forth below is true and correct in all material respects as of that date, calculated in accordance with GAAP, consistently applied (unless otherwise provided) (capitalized terms below have the meanings assigned in the Loan Agreement):
		

		
			1.            Consumer Loan Value.  Debtor represents to Lender that the following information regarding the Consumer Loan Value is true and correct in all material respects (without duplication of any materiality qualifier):
		

			
					
						A

					
					
						Applicable Advance Rate

					
					
						____%

				
	
					
						B

					
					
						Eligible Receivables 

					
					
						$

				
	
					
						C

					
					
						Consumer Loan Value (Eligible Receivables times the applicable Advance Rate)

					
					
						$

				
	
					
						D

					
					
						Minus the total principal amount of Indebtedness

					
					
						$

				
	
					
						E

					
					
						Plus the balance of the Collateral Deposit Account (and amounts in transit)

					
					
						$

				
	
					
						F

					
					
						Consumer Loan Value Deficiency (if any)

					
					
						$

				

		
			 
		

		
			2.            Certification.  The undersigned officer hereby certifies on behalf of Debtor that: (a) Debtor is in compliance with all covenants of the Loan Agreement (or is within a grace period with respect thereto); and (b) as of the date of this compliance certificate and the date received by Lender, no Event of Default or Default, has occurred and is continuing.  The Note and Loan Agreement are acknowledged, ratified, confirmed, and agreed by Debtor to be valid, subsisting, and binding obligations.  Debtor agrees that there is no right to set off or defense to payment of the Indebtedness.
		

		
			3.            Financial Covenants.
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						[***]

					
					
						[***]

					
					
						Section 8(q) Requirement Met?

					
						 

					
						Yes                       No

					
						 

				
	
					
						Cash Flow Coverage Ratio (less than 3.0:1.0)

					
						 

					
					
						Actual Cash Flow Coverage Ratio: _________

					
						 

					
					
						Section 8(ee) Requirement Met:

					
						 

					
						Yes                       No

				

		
			 
		

		
			4.            Level 1 Triggers.
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						PRA Concentration Limit [***]

					
					
						Actual PRA Concentration Limit: __________

					
						 

					
					
						Level 1 Trigger:

					
						 

					
						Yes                       No

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			[***] CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION
		

		
			
		

		

		 

		

			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 15

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

	
					
						

					
						 

					
					
						 

					
					
						 

				
	
					
						Change in Control ((i) Parent shall cease to Control Debtor or (ii) neither Michael Durbin nor Ted Saunders shall participate in the active management of Debtor’s day to day operations unless consented to by Lender and a replacement officer reasonably acceptable to Lender has not been appointed within THIRTY (30) days thereafter)

					
					
						 

					
					
						Level 1 Trigger:

					
						 

					
						Yes                       No

				

		
			 
		

		
			EXECUTED as of the date first written above.
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						CCFI FUNDING II, LLC

					
					
						 

					
					
						6785 Bobcat Way, Suite 200

				
	
					
						 

					
					
						 

					
					
						Dublin, OH  43016

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Name:

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Title:

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 16

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

EXHIBIT B
		

		
			TO
		

		
			AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
		

		
			MINIMUM ASSETS AND MINIMUM CASH CERTIFICATE
		

		
			DATE:   _______________
		

		
			Pursuant to Section 8(a)(xvi) of that certain AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (as amended, modified or restated from time to time, the “Loan Agreement”) dated as of APRIL 25, 2017, between CCFI FUNDING II, LLC, a Ohio limited liability company (“Debtor”), and IVY FUNDING NINE, LLC, a Delaware limited liability company (together with it successors and assigns, “Lender”), Debtor has reviewed its activities for the calendar week ending on _____________, and hereby represents and warrants to Lender that the information set forth below is true and correct in all material respects as of that date, calculated in accordance with GAAP, consistently applied (unless otherwise provided) (capitalized terms below have the meanings assigned in the Loan Agreement):
		

		
			1. Financial Covenants.
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Minimum Asset (on a rolling 10 Business Day average, the sum of all non-cash assets of Debtor as of such date, plus Debtor’s cash in the Collateral Deposit Account as of such date (including verified funds in transit to the Collateral Deposit Account) does not equal or exceed [***] of the then outstanding balance of the Credit Facility) 

					
					
						Days in reporting period:

					
						 

					
						 

					
						 

					
						[Date]

					
						[Date]

					
						[Date]

					
						[Date]

					
						[Date]

					
						[Date]

					
						[Date]

					
						[Date]

					
						[Date]

					
						[Date]

					
						 

					
					
						Actual Non-Cash Assets, plus Cash in Collateral Deposit Account for each day in reporting period:

					
						 

					
						$__________

					
						$__________

					
						$__________

					
						$__________

					
						$__________

					
						$__________

					
						$__________

					
						$__________

					
						$__________

					
						$__________

					
					
						Expressed as percentage of outstanding balance of the Credit Facility for each day in reporting period:

					
						 

					
						________%

					
						________%

					
						________%

					
						________%

					
						________%

					
						________%

					
						________%

					
						________%

					
						________%

					
						________%

					
						 

					
					
						Section 4(e) Requirement Met:

					
						 

					
						Yes                       No

				
	
					
						Minimum Cash (more than [***] in the Collateral Deposit Account as of such date (including verified funds in transit to the Collateral Deposit Account) on a rolling 10 Business Day basis)

					
					
						Actual Minimum Cash for each day in reporting period:

					
						 

					
						[Date]               __________________

					
						[Date]               __________________

					
						[Date]               __________________

					
						[Date]               __________________

					
						[Date]               __________________

					
						[Date]               __________________

					
						[Date]               __________________

					
						[Date]               __________________

					
						[Date]               __________________

					
						[Date]               __________________

					
						 

					
					
						Section 8(dd) Requirement Met:

					
						 

					
						Yes                       No

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			[***] CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION
		

		
			
		

		
			

		 

		

			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 17

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

		

		
			2. PRA Eligible Consumer Loans.
		

		
			Attached hereto as Annex A is a daily report setting forth a summary of PRA Eligible Consumer Loans in accordance with Section 8(a)(xvi) of the Loan Agreement.
		

		
			EXECUTED as of the date first written above.
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						CCFI FUNDING II, LLC

					
					
						 

					
					
						6785 Bobcat Way, Suite 200

				
	
					
						 

					
					
						 

					
					
						Dublin, OH  43016

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Name:

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Title:

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 18

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

		

		
			ANNEX A
		

		
			TO
		

		
			MINIMUM ASSETS AND MINIMUM CASH CERTIFICATE
		

		
			[  ]
		

		
			
		

		
			

		 

		

			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 19

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

		

		
			EXHIBIT C
		

		
			TO
		

		
			AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
		

		
			[FORM OF]
		

		
			ADJUSTED EBITDA CERTIFICATE
		

		
			This ADJUSTED EBITDA CERTIFICATE (this “Certificate”) is delivered by CCFI FUNDING II, LLC, an Ohio limited liability company (“Debtor”), pursuant to Section 8(a)(xv) of that certain AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT dated as of APRIL 25, 2017 by and between Debtor and IVY FUNDING NINE, LLC, a Texas limited liability company (the “Lender”), as amended, restated or otherwise modified from time to time.  Capitalized terms used herein without definition shall have the meanings given to such terms in the Loan Agreement.
		

		
			The undersigned hereby certifies to the Lender that:
		

		
			1.            I am a duly elected Financial Officer of the Debtor;
		

		
			2.            Attached to this Certificate as Attachment A is a worksheet report reflecting the computation of Adjusted EBITDA (based on unaudited interim financial statements) as of the date indicated below and compliance with Section 8(a)(xv) of the Loan Agreement.
		

		
			3.            The Debtor is in compliance with Section 8(a)(xv) of the Loan Agreement: Y/N.
		

		
			COMMUNITY CHOICE FINANCIAL INC.
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			Date as of which Adjusted EBITDA 
is calculated: __________________
		

		
			Date of submission of
Certificate: __________________
		

		
			
		

		
			

		 

		

			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 20

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

		

		
			ATTACHMENT A
		

		
			Year-to-day Adjusted EBITDA1 (from unaudited interim financial statements)
		

		
			Net Income (Loss) (consolidated current month):  ___________________
		

		
			Net Income (Loss) (consolidated YTD):  _________________
		

		
			Adjustments (YTD and determined on a consolidated basis)
		

		
			Interest: ____________
		

		
			Taxes: _____________
		

		
			Depreciation and Amortization: ____________
		

		
			Non-cash compensation: _____________
		

		
			Applicable fees, expenses and charges2:  _________________
		

		
			Administrative Agent approved expenses: ________________
		

		
			Adjusted EBITDA (YTD):  ________________
		

		
			Debtor’s YTD Projections:  __________
		

		
			Debtor’s YTD Projections (times .80):  _____________
		

		
			Compliance:  Y/N
		

		

		
			1  Net income/(loss) measured on GAAP basis, except that net income/loss attributable to MD-JV, LLC are determined on a cash basis.  All intercompany entries eliminated.
		

		
			2  Must be associated with the renegotiation, restructuring and extension the Parent Credit Agreement, the Senior Secured Notes, the SPV II Notes, and the Loan Agreement (including, without limitation, the fees and expenses of Stephens Inc., Ducera Partners LLC and Weil Gotshal & Manges LLP).
		

		
			 
		

		
			

		 

		

			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 21

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

		

		
			EXHIBIT D
		

		
			TO
		

		
			AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
		

		
			WEEKLY REPORTS
		

			
					
						CRIUS

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						TYLY BUDGET COMPARISON

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						($ actuals)

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						MM/DD/YY

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						MM/DD

					
					
						MM/DD

					
					
						 

					
					
						 

					
					
						MM/DD

					
					
						MM/DD

				
	
					
						 

					
					
						 

					
					
						Budget

					
					
						Actual

					
					
						Act vs Budg

					
					
						%

					
					
						Budget

					
					
						Actual

					
					
						Act vs Budg

					
					
						%

					
					
						Budget

					
					
						Actual

					
					
						Act vs Budg

					
					
						%

					
					
						Budget

					
					
						Actual

					
					
						Budget

					
					
						Actual

					
					
						Estimated

					
					
						Adjusted

					
					
						Act vs Budg

					
					
						Act vs Budg

				
	
					
						 

					
					
						 

					
					
						Revenue

					
					
						Revenue

					
					
						Variance

					
					
						Variance

					
					
						$ RI

					
					
						$ RI

					
					
						Variance

					
					
						Variance

					
					
						$ Collected

					
					
						$ Collected

					
					
						Variance

					
					
						Variance

					
					
						NBD%

					
					
						NBD%

					
					
						Net Revenue

					
					
						Net Revenue

					
					
						Adjustment

					
					
						Net Revenue

					
					
						Variance

					
					
						Variance

				
	
					
						 

					
					
						RETAIL ST

					
					
						TOTAL

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Check Cashing

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Checkless

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						PRA

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ONLINE ST

					
					
						TOTAL

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						PRA

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						RETAIL MT

					
					
						TOTAL

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Title

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Installment

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						LOC

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ONLINE MT

					
					
						TOTAL

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Installment

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						LOC

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						TOTAL

					
					
						TOTAL

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			
		

		

		 

		

			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 22

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

	
					
						

					
						CRIUS

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						TYLY SUMMARY

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						($ actuals)

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						MEDIUM TERM

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						Revenue
MTD

					
					
						LM Revenue
MTD

					
					
						LY Revenue
MTD

					
					
						$ +/- since LM
MTD

					
					
						% +/- since LM
MTD

					
					
						$ +/- since LY
MTD

					
					
						% +/- since LY
MTD

					
					
						Lates
$ Balance

					
					
						Lates
%

					
					
						Lates %
Collected MTD

					
					
						Defaults
$ MTD

					
					
						Defaults
MTD %

					
					
						Defaults %
Collected MTD

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Grand Total

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Retail

					
					
						Total

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Installment

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						LoC

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Title

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Online

					
					
						Total

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Installment

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						LoC

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						SHORT TERM

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						Revenue
MTD

					
					
						LM Revenue
MTD

					
					
						LY Revenue
MTD

					
					
						$ +/- since LM
MTD

					
					
						% +/- since LM
MTD

					
					
						$ +/- since LY
MTD

					
					
						% +/- since LY
MTD

					
					
						$ RI
MTD

					
					
						% RI
MTD

					
					
						$ Collected
MTD

					
					
						% Collected
MTD

					
					
						NBD %
MTD

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Grand Total

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Retail

					
					
						Total

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Check Cashing

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Checkless

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						PRA

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Online

					
					
						Total

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						PRA

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 23

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLC

		

 

		

		
			[***]
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			[***] CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION
		

		 

		

			SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT– PAGE 24

		

		

			IVY FUNDING NINE, LLC – CCFI FUNDING II, LLCnvus-ex1010_428.htm

 

Exhibit 10.10

OTIC PHARMA LTD.

GLOBAL SHARE INCENTIVE PLAN (2012)

1.       Name And Purpose.

1.1     This plan, which has been adopted by the Board of Directors of the Company, Otic Pharma Ltd., as amended from time to time, shall be known as the Otic Pharma Ltd. Global Share Incentive Plan (2012)(the “Plan”).

1.2     The purposes of the Plan are to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to Service Providers of the Company and its affiliates and subsidiaries, if any, and to promote the Company's business by providing such individuals with opportunities to receive Awards pursuant to the Plan and to strengthen the sense of common interest between such individuals and the Company's Shareholders.

1.3     Awards granted under the Plan to Service Providers in various jurisdictions may be subject to specific terms and conditions for such grants may be set forth in one or more separate appendix to the Plan, as may be approved by the Board of Directors of the Company from time to time.

2.        Definitions

“Administrator” shall mean the Board of Directors or a Committee.

“Appendix” shall mean any appendix to the Plan adopted by the Board of Directors containing country-specific or other special terms relating to Awards including additional terms with respect to grants of restricted shares and other equity-based Awards.

“Award” shall mean a grant of Options under the Plan or allotment of Shares (including Restricted Shares) or other equity-based award hereunder. All Awards shall be confirmed by an Award Agreement, and subject to the terms and conditions of such Award Agreement.

“Award Agreement” shall mean a written instrument setting forth the terms applicable to a particular Award.

“Board of Directors” shall mean the board of directors of the Company.

“Cause” shall have the meaning ascribed to such term or a similar term as set  forth in the Participant’s employment agreement or the  agreement  governing  the provision of services by a non-employee Service Provider, or, in the absence of such a definition: (a) conviction of a crime of moral turpitude; (b) any material breach by a Participant of his/her fiduciary duties towards the Company, including  theft, embezzlement, or self-dealing, (b) engagement in competing activities, any disclosure of confidential information of the Company or breach of any obligation not to violate a restrictive covenant; (c) a material breach of the Participant’s employment agreement or the agreement governing the provision of services by a non-employee Service Provider 

 

 

which are not cured (if curable) within seven (7) days after receipt of written notice thereof; or (d) if the Participant an employee residing in Israel, any other circumstances under which severance pay (or part of them) may be denied from the Participant upon termination of employment under the applicable Israeli law.

“Committee” shall mean a compensation committee or other committee as may be appointed and maintained by the Board of Directors, in its discretion, to administer the Plan, to the extent permissible under applicable law, as amended from time to time.

“Company” shall mean Otic Pharma Ltd., an Israeli Company, and its successors and assigns.

“Companies Law” shall mean the Israeli Companies Law, 1999, as amended from time to time.

“Consultant” means any entity or individual who (either directly or, in the case of an individual, through his or her employer) is an advisor or consultant to the Company or its subsidiary or affiliate.

“Corporate Charter” shall mean the Articles of Association of the Company, and any subsequent amendments or replacements thereto.

“Disability” shall have the meaning ascribed to such term or a similar term in the Participant's employment agreement (where applicable), or in the absence of such a definition, the inability of the Participant, in the opinion of a qualified physician acceptable to the Company, to perform the major duties of the Participant’s position with the Company because of the sickness or injury of the Participant for a consecutive period of 90 days.

“Fair Market Value” shall mean, as of any date, the value of Shares, determined as follows:

(i)     If the Shares are listed on any established stock exchange or traded on the Nasdaq National Market or the Nasdaq Small Cap Market, the Fair Market Value of an Ordinary Share of the Company shall be the closing sales price for such shares (or the closing bid, if no sales were reported) as quoted on such exchange or market (or the exchange or market with the greatest  volume of trading in the Ordinary Shares) on the  last market trading day prior to the day of determination, as reported in The Wall Street Journal or such other source as the Board deems reliable.

(ii)     In the absence of such markets for the Shares, the Fair Market Value shall be determined in good faith by the Board.

“IPO” shall mean an initial offering of the Company’s Shares to the public in an underwritten offering under an applicable registration statement.

“Options” shall mean options to purchase Shares awarded under the Plan.

2

 

 

“Participant” shall mean a recipient of an Award hereunder who executes an Award Agreement.

“Restricted Shares” means an Award of Shares under this Plan that is subject to the terms and conditions of Section 7.

“Service Provider” shall mean an employee, director, office holder or Consultant of the Company or its subsidiary or affiliate.

“Shares” shall mean ordinary shares of the Company, nominal value NIS 0.01 per share.

“Transaction” shall have the meaning set forth in Section 10.2.

3.       Administration of the Plan.

3.1     The Plan will be administered by the Administrator. If the Administrator is a Committee, such Committee will consist of such number of members of the board of directors of the Company (not less than two in number), as may be determined from time to time by the Board of Directors. The Board of Directors shall appoint such members of the Committee, may from time to time remove members from, or add members to, the Committee, and shall fill vacancies in the Committee however caused.

3.2     The Committee, if appointed, shall select one of its members as its Chairman and shall hold its meetings at such times and places as it shall determine. Actions at a meeting of the Committee at which a majority of its members are present or acts approved in writing by all members of the Committee shall be the valid acts of the Committee. The Committee shall appoint a secretary, who shall keep records of its meetings and shall make such rules and regulations for the conduct of its business and the implementation of the Plan, as it shall deem advisable, subject to the directives of the Board of Directors and in accordance with applicable law.

3.3     Subject to the general terms and conditions of the Plan, and in particular Section 3.4 below, the Administrator shall have full authority in its discretion, from time to time and at any time, to determine (i) eligible Participants, (ii) the number of Options or Shares to be covered by each Award, (iii) the time or times at which the Award shall be granted, (iv) the vesting schedule and other terms and conditions applying to Awards, (v) the form(s) of written agreements  applying to Awards,  and (vi) any other matter  which is necessary or desirable for, or incidental to, the administration of the Plan and the granting of Awards. The Board of Directors may, in its sole discretion, delegate some or all of the powers listed above to the Committee, to the extent permitted by the Companies Law, its Corporate Charter or other applicable law.

3.4     No member of the Board of Directors or of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Award granted hereunder. Subject to the Company’s decision and to all approvals legally required, each member of the Board or the Committee shall be indemnified and held harmless by the Company against any cost or expense (including counsel fees) reasonably incurred by him or her, or any liability (including any sum paid in settlement of a claim with the approval of the Company) arising out of any act or omission to act in connection with the Plan unless arising out of such member's own willful misconduct or 

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bad faith, to the fullest extent  permitted by applicable law. Such indemnification shall be in addition to any rights of indemnification the member may have as a director or otherwise under the Company’s Corporate Charter, any agreement, any vote of shareholders or disinterested directors, insurance policy or otherwise.

3.5     The interpretation and construction by the Administrator of any provision of the Plan or of any Award hereunder shall be final and conclusive. In the event that the Board appoints a Committee, the interpretation and construction by the Committee of any provision of the Plan or of any Award hereunder shall be conclusive unless otherwise determined by the Board of Directors. To avoid doubt, the Board of Directors may at any time exercise any powers of the Administrator, notwithstanding the fact that a Committee has been appointed.

3.6     The Administrator shall have the authority to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan and perform all acts, including the delegation of its responsibilities (to the extent permitted by applicable law and applicable stock exchange rules), as it shall, from time to time, deem advisable; to construe and interpret the terms and provisions of the Plan and any Award issued under the Plan (and any agreements relating thereto); and to otherwise supervise the administration of the Plan. The Administrator may correct any defect, supply any omission or reconcile any inconsistency in the Plan or in any agreement relating thereto in the manner and to the extent it shall deem necessary to effectuate the purpose and intent   of the Plan. Notwithstanding the foregoing, no action of the Administrator under this Section 3.6 not otherwise provided for herein or in an Award Agreement shall reduce the vested rights of any Participant without the Participant’s consent.

3.7     Without limiting the generality of the foregoing, the Administrator may adopt special appendices and/or guidelines and provisions for persons who are residing in or employed in, or subject to, the taxes of, any domestic or foreign jurisdictions, to comply with applicable laws, regulations, or accounting, listing or other rules with respect to such domestic or foreign jurisdictions.

4.       Eligible Participants.

4.1     No Award may be granted pursuant to the Plan to any person serving as a member of the Committee or to any other Director of the Company at the time of the grant, unless such grant is approved in the manner prescribed for the approval of compensation of directors under the Companies Law.

4.2     Subject to the limitation set forth in Section 4.1 above and any restriction imposed by applicable law, Awards may be granted to any Service Provider of the Company, whether or not a director of the Company or its affiliates. The grant of an Award to a Participant hereunder shall neither entitle such Participant to receive an additional Award or participate in other  incentive  plans of the Company, nor disqualify such Participant from receiving and additional Award or participating in other incentive plans of the Company.

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5.       Reserved Shares.

The Company shall determine the number of Shares reserved hereunder from time to time, and such number may be increased or decreased by the Company from time to time. Any Shares under the Plan, in respect of which the right hereunder of a Participant to purchase the same shall for any reason terminate, expire or otherwise cease to exist, shall again be available for grant as Awards under the Plan. Any Shares that remain unissued and are not subject to Awards at the termination of the Plan shall cease to be reserved for purposes of the Plan. Until termination of the Plan the Company shall at all times reserve a sufficient number of Shares to meet the requirements of the Plan.

6.       Award Agreement.

6.1     The Board of Directors in its discretion may award to Participants Awards available under the Plan. The terms of the Award will be set forth in the Award Agreement. The date of grant of each Award shall be the date specified by the Board of Directors at the time such award is made, or in the absence of such specification, the date of approval of the award by the Board of Directors.

6.2     The Award Agreement shall state, inter alia, the number of Options or Shares or equity-based units covered thereby, the type of Option or Share-based or other grant awarded, any special terms applying to such Award (if any), including the terms of any country-specific or other applicable Appendix, as determined by the Board of Directors.

7.       Restricted Shares and Other Equity-Based Awards.

7.1     Eligibility. Restricted Shares may be issued to all Participants either alone or in addition to other Awards granted under the Plan. The Administrator shall determine the eligible Participants to whom, and the time or times at which, grants of Restricted Shares will be made, the number of shares to be awarded, the purchase price (if any) to be paid by the Participant (subject to Section 7.2), the time or times at which such Awards may be subject to forfeiture (if any), the vesting schedule (if any) and rights to acceleration thereof, and all other terms and conditions of the Awards. The Administrator may condition the grant or vesting of Restricted Shares upon the attainment of specified performance targets or such other factors as the Administrator may determine, in its sole discretion. Unless otherwise determined by the Administrator, the Participant shall not be permitted to sell or transfer shares of Restricted  Shares  awarded under this Plan during a period set by the Administrator (if any)  (the  “Restriction Period”) commencing with the date of such Award, as set forth in the applicable Award agreement.

7.2     Terms. A Participant selected to receive Restricted Shares shall not have any rights with respect to such Award, unless and until such Participant has delivered a fully executed copy of the Award Agreement evidencing the Award to the Company and has otherwise complied with the applicable terms and conditions of such Award. The purchase price of Restricted Shares shall be determined by the Administrator, but shall  not be less than as permitted under applicable law. Awards of Restricted Shares must be accepted within a period of 21 days (or such shorter period as the Administrator may 

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specify at grant) after the grant date, by executing an Award Agreement and by paying whatever price (if any) the Administrator has designated thereunder.

7.3     Legend. Each Participant receiving Restricted Shares shall be issued a share certificate in respect of such Restricted Shares, unless the Administrator elects to use another system, such as book entries by the transfer agent, as evidencing ownership of Restricted Shares. Such certificate shall be registered in the name of such Participant, and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Award, substantially in the following form (as well as other legend required by the Administrator pursuant to Section 18.3 below):

“The anticipation, alienation, attachment, sale, transfer, assignment, pledge, encumbrance or charge of the shares represented hereby are subject to the terms and conditions (including forfeiture) of the Otic Pharma Ltd. Global Incentive Plan (2012), and an Award Agreement entered into between the registered owner and the Company dated      .   Copies of such Plan and Award agreement are on file at Otic Pharma Ltd.”

7.4     Custody. The Administrator may require that any share certificates evidencing such shares be held in custody by the Company until the restrictions thereon shall have lapsed, and that, as a condition of any Restricted Shares Award, the Participant shall have delivered a duly signed share transfer deed, endorsed in blank, relating to the Shares covered by such Award.

7.5     Rights as Shareholder.   Except as provided  in  this Section  and   Section 7.4 above and as otherwise determined by the Administrator and set forth in the Award Agreement, the Participant shall have, with respect to the Restricted Shares, all of the rights of a holder of Shares including, without limitation, the right to receive any dividends, the right to vote such shares and, subject to and conditioned upon the full vesting of Restricted Shares, the right to tender such shares. Notwithstanding the foregoing, the payment of dividends shall be deferred until, and conditioned upon, the expiration of the applicable Restriction Period, unless the Administrator, in its sole discretion, specifies otherwise at the time of the Award.

7.6     Lapse of Restrictions.  If and when the Restriction Period expires without a prior forfeiture of the Restricted Shares subject to such Restriction Period, the certificates for such shares shall be delivered to the Participant. All legends shall be removed from said certificates at the time of delivery to the Participant except as otherwise required by applicable law. Notwithstanding the foregoing, actual certificates shall not be issued to the extent that book entry recordkeeping is used.

7.7     Other Equity-Based Awards. Other equity-based awards (including, without limitation, restricted share units and performance share awards) may be granted either alone or in addition to or other Awards granted under the Plan to all eligible Participants pursuant to such terms and conditions as the Administrator may determine, including without limitation, in one or more appendix adopted by the administrator and appended to this Plan.

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8.       Exercise of Options.

8.1     Options shall be exercisable pursuant to the terms under which they were awarded and subject to the terms and conditions of the Plan and any applicable Appendix, as specified in the Award Agreement.

8.2     The exercise price for each share to be issued upon exercise of an Option shall be such price as is determined by the Board in its discretion, provided that the price per Share is not less than the nominal value of each Share, or to the extent required pursuant to applicable law or to qualify for favorable tax treatment (as determined by the Administrator), not less than 100% of the Fair Market Value of a Share on the date of grant.

8.3     An Option, or any part thereof, shall be exercisable by the Participant's signing and returning to the Company at its principal office, a “Notice of Exercise” in such form and substance as may be prescribed by the Board of Directors from time to time, together with full payment for the Shares underlying such Option, and the execution and delivery of any other document required pursuant to the applicable Award Agreement.

8.4     Each payment for Shares under an Option shall be in respect of a whole number of Shares, shall be effected in cash or by check payable to the order of the Company, or such other method of payment acceptable to the Company as determined by the Administrator, and shall be accompanied by a notice stating the number of Shares being paid for thereby.

8.5     Until the Shares are issued (as evidenced by the appropriate entry in the share register of the Company or of a duly authorized transfer agent of the Company) a Participant shall have no right to vote or right to receive dividends or any other rights as a shareholder shall exist with respect to such Shares, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right the record date for which is prior to the date the Shares are issued, except as provided in Section 10 of the Plan.

8.6     To the extent permitted by law, if the Share is traded on a national securities exchange, The Nasdaq Share Market or quoted on a national quotation system sponsored by the National Association of Securities Dealers or otherwise publicly traded or quoted, payment for the Shares underlying an Option may be made all or in part by the delivery (on a form prescribed by the Company) of an irrevocable direction to a securities broker approved by the Company to sell Shares and to deliver all or part of the sales proceeds to the Company in payment of the exercise price (or the relevant portion thereof, as applicable) and any withholding taxes, or  on such other terms and conditions as may  be acceptable to the Administrator. No Shares shall be issued until payment has been  made or provided for, as provided herein.

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8.7     The Administrator may designate certain periods, at its reasonable discretion, with respect to all or certain groups of Participants and/or with respect to  certain types of Awards, during which the exercise of Awards and/or sale of Shares shall be restricted or prohibited, including without limitation, in order to comply with applicable laws in any relevant jurisdiction and/or rules of any exchange on which the Company's shares are traded. During such blackout periods, Participants will not be able to exercise the Options (or other Awards) and/or sale the Shares held by or on behalf of  the Participants, and the Company shall not bear any liability to Participants for any claim, loss or liability that may result from such restrictions.

9.       Termination of Relationship as Service Provider.

9.1     Effect of Termination; Exercise after Termination. Unless otherwise determined by the Administrator, if a Participant ceases to be a Service Provider, such Participant may exercise any outstanding Options within such period of time as is specified in the Award Agreement or the Plan to the extent that the Options are vested on the date of termination (but in no event later than the expiration of the term of the Option as set forth in the Award Agreement). If, on the date of termination, any Options are unvested, the Shares covered by the unvested portion of the Option shall revert to the Plan. If, after termination, the Participant does not exercise the vested Options within the time specified in the Award Agreement or the Plan, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan.

In the absence of a provision specifying otherwise in the relevant Award Agreement, then:

(a)     in the event that the Participant ceases to be a Service Provider for any reason other than termination for Cause , or as a result of Participant’s death or Disability, then (i) the vested Options shall remain exercisable until the earlier of: (a) a period of three (3) months from the Date of Termination; or (b) expiration of the term of the Option as set forth in Section 13; and (ii) all Restricted Shares still subject to restriction under the applicable Restriction Period, as set forth in the Award Agreement, shall be forfeited.

(b)     in the event that the Participant ceases to be a Service Provider for Cause, then (i) all Options will terminate immediately upon the date of such termination for cause, such that the unvested portion of the Options will not vest, and the vested portion of the Options will no longer be exercisable; and (ii) all Restricted Shares still subject to restriction under the applicable Restriction Period as of the Date of Termination, as set forth in the Award Agreement, shall be forfeited.

(c)     in the event that the Participant ceases to be a Service Provider as a  result of Participant’s Disability, then (i) the vested Options shall remain exercisable until the earlier of: (a) a period of twelve (12) months from the Date of Termination; or (b)expiration of the term of the Option as set forth in Section 13; and (ii) subject to sub-section (i) above, all Restricted Shares still subject to restriction under the applicable Restriction Period, as set forth in the Award Agreement, shall be  forfeited.

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(d)     in the event that the Participant dies while a Service  Provider:  (i)  the vested portion of the Option shall remain exercisable by the Participant’s estate or by a person who acquires the right to exercise the Option by bequest or inheritance for twelve (12) months following the Participant’s date of death; and (ii) subject to sub-section (i) above, all Restricted Shares still subject to restriction under the applicable Restriction Period as of the Date of Termination, as set forth in the Award Agreement, shall be forfeited as of the Date of Termination.

9.2     Date of Termination. For purposes of the Plan  and  any  Award  or  Award Agreement, and unless otherwise set forth in the relevant Award Agreement, the “Date of Termination” (whether for Cause or otherwise) shall be the effective date of termination of the Participant's employment or engagement as a Service Provider.

9.3     Leave of Absence.  Unless the Administrator provides otherwise, vesting of Awards granted hereunder shall be suspended during any unpaid leave of absence (except, for the avoidance of doubt, periods of legally protected leave of absence pursuant to applicable law).

9.4     Change of Status. A Service Provider shall not cease to be considered as such in the case of any (a) leave of absence approved by the Company or pursuant to applicable law, or (b) transfers between locations of the Company or between the Company, and its parent, subsidiary, affiliate, or any successor thereof; or (c) changes in status (employee to director, employee to consultant, etc.) provided that such change may affect the specific terms applying to the Service Provider’s Award.

10.       Adjustments.

Upon the occurrence of any of the following described events, a Participant's rights to purchase Shares under the Plan shall be adjusted as hereinafter  provided:

10.1     Changes in Capitalization. Subject to any required action by the shareholders of the Company, the number of Shares covered by each outstanding Award, and the number of Shares which have been authorized for issuance under the Plan but as to which no Options or other Award have yet been granted or which have been returned to the Plan upon cancellation or expiration of an Option or other Award, as well as the price per Share covered by each such outstanding Award, shall be proportionately adjusted for any increase or decrease in the number of issued Shares resulting from a share split, reverse share split, share dividend, combination or reclassification of the Shares, or any other increase or decrease in the number of issued Shares effected without receipt of consideration by the Company. The conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of any class, or securities convertible into shares of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject to an Option or other Award.

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10.2     Merger, Acquisition, or Asset Sale.

(a)     In the event of (i) a merger or consolidation of the Company with or into another corporation resulting in such other corporation being the surviving entity or the direct or indirect parent of the Company or resulting in the Company being the surviving entity and any other person or entity owning fifty percent (50%) or more of the outstanding voting power of the Company’s securities by virtue of the transaction, (ii) an acquisition of all or substantially all of the shares of the Company, or (iii) the sale of all or substantially all of the assets of the Company (each such event, a “Transaction”), the unexercised or restricted portion of each outstanding Award shall be assumed or an equivalent Award or right substituted, by the successor corporation or an affiliate of the successor corporation, as shall be determined by such entity, subject to the terms hereof. In the event that the successor corporation or a parent or subsidiary of the successor corporation does not provide for such an assumption or substitution of Awards, the Administrator shall have sole and absolute discretion to determine the effect of the Transaction on the unexercised and unvested or restricted portion of Awards outstanding at the time of the Transaction, which may include either of the following: (i) all or a portion of the outstanding Awards shall become exercisable in full and/or the vesting of all or a portion of the unvested Awards will accelerate on a date no later than two (2) days prior to the date of consummation of the Transaction, provided that unless otherwise determined by the Administrator, the exercise and/or vesting of all Awards that otherwise would not have been exercisable and/or vested in the absence of a Transaction, shall be contingent upon the actual consummation of the Transaction; (ii) that all or a portion or certain categories of the outstanding Awards shall be cancelled upon the actual consummation of the Transaction, and instead the Participants will receive a cash payment in the amount and under the terms determined by the Administrator at it sole and absolute discretion; and/or (iii) that all or a portion or certain categories of the outstanding unvested or restricted Awards shall be cancelled upon the actual consummation of the Transaction, without consideration.

(b)     For the purposes of this Section 10.2, an Award shall be considered assumed or substituted if, following a Transaction, the Award confers the right  to  purchase or receive, for each Share subject to the Award immediately prior to the Transaction, the consideration (whether shares, cash, or other securities or property) received in the merger or sale of assets by holders of Shares of the Company for each Share held on the effective date of the Transaction (and if holders were offered a choice of consideration, the type of consideration determined by the Administrator, at its sole discretion); provided, however, that if the consideration received in the Transaction is not solely common stock or ordinary shares (or the equivalent) of the successor corporation or its direct or indirect parent, the Administrator may, with the consent of the successor corporation,  provide for the per  share consideration to be received upon the exercise of  the Award to be solely common stock or ordinary shares (or the equivalent) of the successor corporation or its direct or indirect parent equal in fair market value to the per share consideration received by holders of Shares in the Transaction, as determined by the Administrator.

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(c)     In the event that the Board of Directors determines in good faith that, in the context of a Transaction, certain Awards have no monetary value and thus do not entitle the holders of such Awards to any consideration under the terms of the Transaction, the Board of Directors may determine that such Awards shall terminate effective as of the effective date of the Transaction.

(d)     It is the intention that the Administrator’s authority to make determinations, adjustments and clarifications in connection with the treatment of Awards shall be interpreted as widely as possible, to allow the Administrator maximal power and flexibility to interpret and implement the provisions of the Plan in the event  of  Transaction, provided that the Administrator shall determine in good faith that a Participant’s vested rights are not thereby adversely affected without the Participant’s express written consent. Without derogating from the generality of the foregoing, the Administrator shall have the authority, at its sole discretion, to determine that the treatment of Awards, whether vested or unvested, in a Transaction may differ among individual Participants or groups of Participants, provided that the overall economic impact of the different approaches determined by the Administrator shall be substantively equivalent as of the date of the closing of the Transaction.

11.       Non-Transferability of Options and Shares.

11.1     No Option may be transferred other than by will or by the laws of descent and distribution, and during the Participant's lifetime an Option may be exercised only by such Participant.

11.2     Restricted Shares may not be assigned, transferred, pledged or mortgaged, other than by will or laws of descent and distribution, prior to the date on which the date  on which any applicable restriction, performance or deferred period lapses. Shares for which full payment has not been made, may not be assigned, transferred, pledged or mortgaged, other than by will or laws of descent and distribution.

11.3     For avoidance of doubt, the foregoing shall not be deemed to restrict the transfer of a Participant's rights in respect of Options or Shares purchasable pursuant to the exercise thereof upon the death of such Participant to such Participant’s estate or other successors by operation of law or will, whose rights therein shall be governed by Section 9.1(d) hereof, and as may otherwise be determined by the Administrator.

12.       Term and Amendment of the Plan.

12.1     The Plan shall expire on the date which is ten (10) years from the date of its adoption by the Board of Directors (except as to Awards outstanding on that date).

12.2     Notwithstanding any other provision of the Plan, the Board (or a duly authorized Committee thereof) may at any time, and from time to time, amend, in whole   or  in  part,  any or  all of  the provisions  of the Plan  (including any amendment    deemed necessary to ensure that the Company may comply with any regulatory requirement), or suspend or terminate it entirely, retroactively or otherwise; provided, however,  that,  except (x) to correct obvious drafting errors or as otherwise required by law or (y) as specifically provided herein, the rights of a Participant with respect to vested 

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Awards granted prior to such amendment, suspension or termination, may not be reduced without the consent of such Participant. The Administrator may amend the terms of any Award theretofore granted, prospectively or retroactively, but except (x) to correct obvious drafting errors or as otherwise required by law or applicable accounting rules, or (y) as specifically provided herein, no such amendment or other action by the Committee shall reduce the rights of any Participant with respect to vested Awards without  the  Participant’s consent.

13.       Term of Option.

Unless otherwise explicitly provided in an Award Agreement, if any Option, or  any part thereof, has not been exercised and the Shares covered thereby not  paid for  within ten (10) years after the date on which the Option was granted, as set forth in the Award Agreement (or any other period set forth in the instrument granting such Option pursuant to Section 6), such Option, or such part thereof, and the right to acquire such Shares shall terminate, all interests and rights of the Participant in and to the same shall expire, and, in the event that in connection therewith any Shares are held in trust as aforesaid, such trust shall expire.

14.       Continuance of Engagement.

Neither the Plan nor any offer of Shares or Options to a Participant shall impose any obligation on the Company or a related company thereof, to continue the employment or engagement of any Participant as a Service Provider, and nothing in the Plan or in any Award granted pursuant thereto shall confer upon any Participant any right to continue to serve as a Service Provider of the Company or a related company thereof or restrict the right of the Company or a related company thereof to terminate such employment or engagement at any time.

15.       Governing Law.

The Plan and all instruments issued thereunder or in connection therewith, shall be governed by, and interpreted in accordance with, the laws of the State of Israel.

16.       Application of Funds.

The proceeds received by the Company from the sale of Shares pursuant to Awards granted under the Plan will be used for general corporate purposes of the Company or any related company thereof.

17.       Taxes.

17.1     Any tax consequences arising from the grant, or vesting or exercise of any Award, from the payment for Shares covered thereby, or from any other event or act (of the Company, and/or its affiliates, or the Participant), hereunder, shall be borne solely by the Participant. The Company and/or its affiliates shall withhold taxes according to the requirements under the applicable laws, rules, and regulations, including withholding taxes at source. Furthermore, the Participant shall agree to indemnify the Company and/or its affiliates and hold them harmless against and from any and all liability for any such tax or interest or penalty thereon, including without limitation, liabilities relating to 

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the necessity to withhold, or to have withheld, any such tax from any payment made to the Participant. The Company or any of its affiliates may make such provisions and take such steps as it may deem necessary or appropriate for the withholding of all taxes required by law to be withheld with respect to Awards granted under the Plan  and  the  exercise thereof, including, but not limited, to (i) deducting the amount so required to be withheld from any other amount (or Shares issuable) then or thereafter to be provided to the Participant, including by deducting any such amount from a Participant’s salary or other amounts payable to the Participant, to the maximum extent permitted under law and/or (ii) requiring the Participant to pay to the Company or any of its affiliates the amount so required to be withheld as a condition of the issuance, delivery, distribution or release of any Shares and/or (iii) by causing the exercise and sale of any Awards or Shares held by  on behalf of the Participant to cover such liability, up to the amount required to satisfy minimum statutory withholding requirements. In addition, the Participant will be required to pay any amount due in excess of the tax withheld and transferred to the tax authorities, pursuant to applicable tax laws, regulations and rules.

17.2     The receipt of an Award and/or the acquisition of Shares issued upon the exercise of the Awards may result in tax consequences. The description of tax consequences set forth in the Plan or any Appendix hereto does not purport to be complete, up to date or to take into account any special circumstances relating to a Participant.

17.3     THE PARTICIPANT IS ADVISED TO CONSULT WITH A TAX ADVISOR WITH RESPECT TO THE TAX CONSEQUENCES OF RECEIVING OR EXERCISING ANY AWARD IN LIGHT OF HIS OR HER PARTICULAR CIRCUMSTANCES.

18.       Market Stand-Off

If so requested by the Company or any representative of the underwriters (the “Managing Underwriter”) in connection with any registration of the offering of any securities of the Company under the securities laws of any jurisdiction, the Participant  shall not sell or otherwise transfer any Shares or other securities of the Company during a 180-day period or such other period as may be requested in writing by the Managing Underwriter and agreed to in writing by the Company (the “Market Standoff Period”) following the effective date of registration statement of the Company filed under such securities laws. The Company may require the Participant to execute a form of undertaking to this effect or impose stop transfer instructions with respect to securities subject to the foregoing restrictions until the end of such Market Standoff Period.

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19.       Conditions Upon Issuance of Shares.

19.1     Legal Compliance. Shares shall not be issued pursuant to the exercise of an Option or with respect to any other Award unless the exercise of such Option or grant of such Award and the issuance and delivery of such Shares shall comply with applicable laws and shall be further subject to the approval of counsel for the Company with respect to such compliance. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.

19.2     Investment Representations. As a condition to the exercise of an Option or receipt of an Award, the Board may require the person exercising such Option or receiving such Award to represent and warrant at the time of any such exercise or the time of receipt of the Award that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares, and make other representations as may be required under applicable securities laws if, in the opinion of counsel for the Company, such representations are required, all in form and content specified by the Board.

19.3     Legend. The Administrator may require each person receiving Shares pursuant to an Award granted under the Plan to represent to and agree with the Company in writing that the Participant is acquiring the shares without a view to distribution thereof and such other securities law related representations as the Administrator shall request. In addition to any legend required by the Plan, the certificates for such shares may include any legend which the Administrator deems appropriate to reflect any applicable restrictions on transfer. All certificates for Shares delivered under  the  Plan shall  be subject to such share transfer orders and other restrictions as the Administrator may deem advisable under the rules, regulations and other requirements of any relevant securities authority, any stock exchange upon which the Shares are then listed or any national securities association system upon whose system the Shares are then quoted, any applicable securities law, and any applicable corporate law, and the Administrator may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

20.       Proxy

The Company, at its sole discretion, may require that as a condition of grant of an Award or of exercise of an Option, the Participant be required to grant an irrevocable  proxy to any appropriate person  designated  by the Company or as required pursuant to  any agreement between the Participant and existing shareholders of the Company, to vote all Shares obtained by the Participant pursuant to an Award at all general meetings of Company, and to sign all written resolutions, waivers, consents etc. of the shareholders of the Company on behalf of the Participant, including the right to waive on behalf of the Participant all minimum notice requirements for meetings of shareholders of  the Company. Such proxy shall remain in effect until the consummation of an IPO, and shall be irrevocable as the rights of third parties, including investors in the Company, depend upon such proxy. The proxy shall be personal to the Participant and shall not survive the transfer of the Participant’s Shares to a third-party transferee; provided, 

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however, that upon a transfer of the Participant’s Shares to such a transferee (subject to the terms and conditions of the Plan concerning any such transfer), the transferee may be required to grant an irrevocable proxy to such appropriate person as the Company, in giving its approval to the transfer, so requires. The proxy may be contained in the Award Agreement of each Participant or otherwise as the Committee determines. If contained in the Award Agreement, no further document shall be required to implement such proxy, and the signature of the Participant on the Award Agreement shall indicate approval of the proxy thereby granted. The holder of the proxy shall be indemnified and held harmless by the Company against any cost or expense (including counsel fees) reasonably incurred by him/her, or any liability (including any sum paid in settlement of a claim with the approval of the Company) arising out of any act or omission to act in connection with the voting of the proxy unless arising out of his/her own fraud, bad faith or gross negligence, to the extent permitted by applicable law. Such indemnification shall be in addition to any rights of indemnification the holder of the proxy may have as a director, officer or otherwise under the Company's Corporate Charter or any agreement, any vote   of shareholders or directors, insurance policy or otherwise.

21.        Additional Restrictions on Transfer of Shares.

Until such time as the Shares are registered for trade to the public, a Participant shall not be permitted to transfer, sell, assign, pledge, hypothecate, or otherwise encumber or dispose of in any way to one or more third parties other than other than with the prior approval of the Board of Directors, and in any event, subject to any relevant provisions of the Corporate Charter, as in effect from time to time, and/or the Award Agreement.

22.       Miscellaneous.

Whenever applicable in the Plan, the singular and the plural, and the masculine, feminine and neuter shall be freely interchangeable, as the context requires. The Section headings or titles shall not in any way control the construction of the language herein, such headings or titles having been inserted solely for the purpose of simplified reference. Words such as “herein”, “hereof”, “hereto”, “hereinafter”, “hereby”, and “hereinabove” when used in the Plan refer to the Plan as a whole, including any applicable Appendices, unless otherwise required by context.

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