Document:

Combined Amended and Restated Term Promissory Note

 EXHIBIT 10.6 
  
 COMBINED AMENDED AND RESTATED 
 TERM PROMISSORY NOTE 
  

									
	 $8,864,606.00
	  	 	  	 	  	 	  	October 16, 2003
	 	  	 	  	 	  	 	  	Chicago, Illinois

  
 FOR VALUE RECEIVED,
the undersigned, QC HOLDINGS, INC., a Kansas corporation, QC FINANCIAL SERVICES, INC., a Missouri corporation, QC FINANCIAL SERVICES OF CALIFORNIA, INC., a California corporation, FINANCIAL SERVICES OF NORTH CAROLINA, INC., a Delaware corporation,
CASH TITLE LOANS, INC., a Missouri corporation, TITLE LOANS, INC., a Missouri corporation (collectively, and jointly and severally hereinafter referred to as “Borrower”), promise to pay to the order of BANCO POPULAR, ILLINOIS
(“Bank”), at its principal office at 4000 West North Avenue, Chicago, Illinois 60639, or at such other address as Bank shall advise Borrower from time to time, the principal sum of Eight Million Eight Hundred Sixty-Four Thousand and
Six Hundred Six and No/100 Dollars ($8,864,606.00), at the rate per annum from time to time as announced by Bank as its prime commercial rate plus one percent (1%) floating (the “Interest Rate”). Interest shall be calculated on the
basis of a three hundred sixty (360) day year comprised of twelve (12) thirty (30) day months. 
  
 Principal and interest due under this Note shall be paid to the holder hereof in equal monthly principal installments of One Hundred Forty-Seven Thousand Seven Hundred Forty-Four Dollars ($147,744.00), together with
interest on the outstanding principal balance at the Interest Rate set forth above, commencing on November 30, 2003, and on the last day of each month thereafter for an additional Fifty-Eight (58) consecutive months, plus a final payment of all
unpaid principal and accrued interest on the 31st day of October, 2008 (the “Maturity Date”). 
  
 This Note is given pursuant to that certain Amended and Restated Loan and Security Agreement dated October 16, 2003, which amends and restates that
certain Loan Agreement and Security Agreement dated January 7, 2000, as amended (such Amended and Restated Loan and Security Agreement is referred to as “Loan Agreement”) executed by Borrower, Bank, and another, and is secured by
the collateral set forth in the Loan Agreement and is effective as of October 16, 2003. The Loan Agreement and other documents executed and delivered to Bank in connection therewith contain provisions for the acceleration of the maturity of this
Note. 
  
 This Note is being delivered pursuant to the Loan
Agreement and reflects a combination of Loan No. 1, Loan No. 3 and Loan No. 5 (collectively the “Prior Notes”), which currently have an aggregate unpaid principal balance of Eight Million Eight Hundred Sixty-Four Thousand Six Hundred Six
and no/100 Dollars ($8,864,606.00). The indebtedness evidenced by the Prior Notes is continuing indebtedness, and nothing herein shall be deemed to constitute a payment, settlement or novation of the Prior Notes, or to release or otherwise adversely
affect any lien, mortgage or security interest securing such indebtedness or any rights of Bank against any guarantor, surety or other party primarily or secondarily liable for such indebtedness. 
  
  

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 EXHIBIT 10.6 
  
 If Bank has not received the full amount of any monthly payment, other than the final principal and interest payment, by the end of fifteen (15) calendar
days after the date it is due, Borrower shall pay a late charge to Bank in the amount of five percent (5%) of the overdue payment in order to defray part of the expense incident to handling such delinquent payment. Borrower shall pay this late
charge only once on any particular late payment. Such late charge shall be in addition to and separate from any increase in interest due hereunder as a result of calculation of interest at the Default Rate, as hereinafter defined. 
  
 Upon the occurrence of any Event of Default (as defined in the Loan
Agreement), and continuing until this Note is paid in full, and after maturity, the principal hereof then outstanding shall bear interest at the rate per annum determined by adding four percent (4%) to the Interest Rate (the “Default
Rate”). 
  
 Upon the occurrence of an Event of Default,
this Note and all other indebtedness of Borrower to Bank shall immediately become due and payable, without notice or demand by Bank. 
  
 All payments and prepayments on account of the indebtedness evidenced by this Note shall be first applied to costs of collection and any other charges due
hereunder, if any, then on accrued and unpaid interest on the unpaid principal balance of this Note and the remainder, if any, to said principal balance. Borrower may prepay all or any part of the principal balance of this Note. 
  
 Whenever Borrower is obligated to pay or reimburse Bank for any
attorneys’ fees, those fees shall include the allocated costs for services of in-house counsel. 
  
 All loans made by Bank against this Note and all payments made by Borrower on account of the unpaid principal amount hereof, shall be recorded on the
books and records of the holder hereof and endorsed hereon prior to any transfer hereof, and Borrower agrees that in any action or proceeding instituted to collect or enforce collection of this Note, the amount shown as owing on this Note on the
books and records of the holder hereof shall be rebuttable presumptive evidence of the principal amount owing and unpaid on this Note. 
  
 If Bank delays in exercising or fails to exercise any of its rights under this Note, that delay or failure shall not constitute a waiver of any of
Bank’s rights, or of any breach, default or failure of condition of or under this Note. No waiver by Bank of any of its rights, or of any such breach, default or failure of condition shall be effective, unless the waiver is expressly stated in
a writing signed by Bank. All of Bank’s remedies in connection with this Note or under applicable law shall be cumulative, and Bank’s exercise of any one or more of those remedies shall not constitute an election of remedies. 

 
 This Note has been executed and delivered in Chicago, Illinois and shall
be construed in accordance with, and governed by, the laws of the State of Illinois. 
  

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 EXHIBIT 10.6 
  
 In the event one or more of the provisions contained in this Note shall for any reason be held to be invalid, illegal or unenforceable in any respect by a
court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision of this Note, and this Note shall be construed as if such invalid, illegal or unenforceable provision had never been contained
herein. 
  
 Borrower hereby irrevocably waives any right to trial
by jury in any action, suit, counterclaim or proceeding (i) to enforce or defend any rights under or in connection with this Note, or any amendment, instrument, document or agreement delivered or which may in the future be delivered in connection
herewith or therewith, or (ii) arising from any dispute or controversy arising in connection with or related to this Note, or any such amendment, instrument, document or agreement, and agrees that any such action, suit, counterclaim or proceeding
shall be tried before a court and not before a jury. 
  
 Borrower
promises to pay all reasonable costs and expenses (including reasonable attorneys’ fees and costs suffered or incurred by the holder hereof) in collecting this Note or in enforcing any rights under the Loan Agreement including any collateral
granted thereunder. Except for notice required pursuant to the terms of the Loan Agreement, Borrower hereby waives notice of nonpayment, presentment for payment, notice of dishonor, and protest of this Note. 
  
 If more than one person or entity signs this Note as Borrower, their
obligations under this Note shall be joint and several. 
  
 The
obligations and liabilities under this Note of Borrower shall be binding upon and enforceable against Borrower, and its respective heirs, legatees, legal representatives, successors and assigns. This Note shall inure to the benefit of and may be
enforced by Borrower, its successors and assigns. 
  
 Time is of
the essence hereof. 
  
 Borrower acknowledges and agrees that the
loan which is evidenced by this Note constitutes a “business loan” under the provisions of 815 ILCS ‘205/4. 
  
 If payment hereunder becomes due and payable on a Saturday, Sunday or legal holiday, the due date thereof shall be extended to the next succeeding
business day and interest shall be payable thereon at the interest rate set forth herein. 
  
 [EXECUTIONS ARE ON THE FOLLOWING PAGE] 
  

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 EXHIBIT 10.6 
  
 IN WITNESS WHEREOF, the undersigned have executed this Note as of the date first above written. 
  

									
	 QC HOLDINGS, INC., 
 a Kansas corporation
	 	 	 	 QC FINANCIAL SERVICES, INC.,
 a Missouri corporation

					
	By:	 	 /s/    Don Early        
	 	 	 	By:	 	 /s/    Don Early        

	 	 	
	 	 	 	 	 	

	 Title:
	 	 President
	 	 	 	 Title:
	 	 President

			
	 QC FINANCIAL SERVICES OF
 CALIFORNIA, INC.,
 a California corporation
	 	 	 	 FINANCIAL SERVICES OF NORTH
 CAROLINA, INC.,
 a Delaware corporation

					
	By:	 	 /s/    Don Early        
	 	 	 	By:	 	 /s/    Don Early        

	 	 	
	 	 	 	 	 	

	 Title:
	 	 President
	 	 	 	 Title:
	 	 President

			
	 CASH TITLE LOANS, INC.
 a Missouri corporation
	 	 	 	 TITLE LOANS, INC.,
 a Missouri corporation

					
	By:	 	 /s/    Don Early        
	 	 	 	By:	 	 /s/    Don Early        

	 	 	
	 	 	 	 	 	

	 	 	 Title:     President
	 	 	 	 	 	 Title:     President

  

 4Subordinated Promissory Note

 EXHIBIT 10.7 
  
 THIS NOTE AND THE INDEBTEDNESS EVIDENCED HEREBY ARE SUBORDINATE IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN SUBORDINATION AGREEMENT DATED
THE DATE HEREOF AMONG QC HOLDINGS, INC., BANCO POPULAR NORTH AMERICA, CAHILL, WARNOCK STRATEGIC PARTNERS FUND, L.P. AND STRATEGIC ASSOCIATES, L.P. 
  
 SUBORDINATED PROMISSORY NOTE 
  

			
	 $7,106,215
	  	October 16, 2003

  
 FOR VALUE
RECEIVED, QC HOLDINGS, INC., a Kansas corporation (“Borrower”), hereby promises to pay to the order of CAHILL, WARNOCK STRATEGIC PARTNERS FUND, L.P., a limited partnership organized under the laws of the State of Delaware, at
c/o Cahill, Warnock & Company, L.L.C., One South Street, Suite 2150, Baltimore, Maryland 21202, or such other address in the United States as may be designated by the Holder in writing to the Borrower, in lawful money of the United States, the
sum of Seven Million One Hundred Six Thousand Two Hundred Fifteen and No/100 Dollars ($7,106,215.00). The Borrower promises to pay interest on the unpaid principal of this Note until paid in full at the rate of: (i) six percent (6%) per annum
quarterly in arrears beginning on the date of this Note and ending on the first anniversary of this Note; (ii) eight percent (8%) per annum quarterly in arrears beginning on the first anniversary of this Note and ending on the second anniversary of
this Note; and (iii) ten percent (10%) per annum quarterly in arrears beginning on the second anniversary of this Note and continuing until this Note is paid in full, provided, however, during the occurrence and continuance of an Event
of Default, the interest rate shall be twelve percent (12%) (“Default Interest”). Interest payment shall be made quarterly in arrears on January 1, April 1, July 1, and October 1 of each year. The principal amount of this Note is due and
payable in full on the third anniversary of this Note. In all events, all unpaid principal of this Note and all accrued and unpaid interest thereon shall mature on October             ,
2006. All amounts outstanding on this Note and remaining unpaid on the day when the principal of this Note becomes finally due (whether by acceleration, final maturity or otherwise) will be due and payable on that day. 
  
 All references herein to the “Holder” of this Note shall refer
initially to Cahill, Warnock Strategic Partners Fund, L.P., and thereafter to any person to whom this Note is assigned or transferred by the Holder or any subsequent Holder hereof. 
  
 All payments of principal of, and interest on this Note shall be made in lawful money of the United States, in immediately
available funds by not later than 12:00 noon Kansas City time on the day when due. If any such payment falls due on a day that is not a business day, such payment will be due on the next succeeding business day at such place, and such extension of
time will be included in the computation of interest. All computations of interest will be made on the basis of the actual number of days elapsed and on a year of 365 or 366 days, as the case may be. 
  
 This Note may be prepaid in whole or in part at any time without the prior
written consent of the Holder. If all principal, interest and other amounts then due in connection with this Note and in connection with the Note made by Borrower in favor of Strategic Associates, L.P., dated as of the date hereof, in the initial
aggregate principal amount of $393,785, have been paid in full by the first anniversary hereof, then the aggregate principal amount of this Note shall be discounted $236,875.00. 
  
 This Note evidences a portion of the purchase price paid for certain shares of Common Stock of the Borrower held by Holder
and purchased and redeemed by Borrower on the date hereof. This Note is 
  

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 subject to the terms of that certain Subordinated Note Agreement dated the date hereof (the “Note Agreement”),
between the Borrower and Holder. 
  
 The indebtedness evidenced
by this Note and any renewals or extensions hereof (the “Subordinated Indebtedness”) is and at all times shall be wholly subordinate and junior in right of payment to any and all indebtedness of Borrower and its subsidiaries that is Senior
Indebtedness, as defined in the Note Agreement. 
  
 The
occurrence and continuance of any of the following events shall constitute an “Event of Default” hereunder: 
  
 (a) failure of the Borrower to pay any installment of interest or principal on this Note when the same shall become due and payable,
whether at maturity or by acceleration or otherwise; or 
  
 (b) failure of the Borrower or any subsidiary to observe or perform any of the other covenants, conditions or provisions hereof or in the Note Agreement and to remedy such default within 30 days after written notice
thereof from the Holder to the Borrower; or 
  
 (c) (i) default in the payment of the principal of or interest on any obligation of the Borrower to Holder, (ii) default by the Borrower or any subsidiary on any obligation for borrowed money (other than Senior Indebtedness) in excess of
$250,000 as and when the same shall become due (unless the same is being contested in good faith), (iii) default by the Borrower or any subsidiary on any obligation owing in respect of the Senior Indebtedness, or (iv) failure by the Borrower or any
subsidiary to perform or observe any term, covenant or condition under any agreement or instrument relating to such indebtedness and continuance of such default beyond the period of grace, if any, allowed with respect thereto; or 
  
 (d) entry or filing of any judgment, writ or warrant of
attachment or of any similar process in an amount in excess of $250,000 against the Borrower or against any of its property and failure of the Borrower to vacate, pay, bond, stay or contest in good faith such judgment, writ, warrant of attachment or
other process for a period of 90 days; or 
  
 (e)
admission by the Borrower of insolvency or bankruptcy or its inability or failure to pay its debts as they become due, or the Borrower makes an assignment for the benefit of creditors or applies for or consents to the appointment of a trustee,
custodian or receiver for the Borrower, or for the major part of its property or the Borrower is generally not paying its debts as such debts become due; or 
  
 (f) appointment by a court of competent jurisdiction of a trustee, custodian or receiver for the Borrower or for the major part of its
property and failure to obtain discharge of such within 90 days after such appointment; or 
  
 (g) institution of bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, proceedings under Title 11 of the
United States Code, as amended, or other proceedings for relief under any bankruptcy law or similar law for the relief of debtors by or against the Borrower (other than bankruptcy proceedings instituted by the Borrower against third parties), and,
if instituted against the Borrower, allowance against the Borrower or the Borrower consents to such proceedings or fails to obtain dismissal, stay or other nullification within 90 days after such institution; or 

	

  
  

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 (h) any representation or warranty made or deemed made by the Borrower in the Note
Agreement or the Stock Redemption Agreement dated the date hereof between Borrower and Holder, or which is contained in any certificate, document, opinion, or financial or other statement furnished at any time to the Holder shall prove to have been
incorrect, incomplete, or misleading in any material respect on or as of the date made or deemed made. 
  
 During the occurrence and continuance of any Event of Default hereunder, the Holder shall have the following rights and remedies, in addition to any other
remedies herein (including without limitation Default Interest) or by law provided: 
  
 (a) The Holder may by written notice to the Borrower, declare the principal of, and interest on, this Note to be due and payable
immediately, and upon any such declaration the principal of, and interest on, this Note and all other sums of money payable to the Holder under this Note shall become and be immediately due and payable as if all of the sums of money payable
thereunder were originally stipulated to be paid on such accelerated payment date. 
  
 (b) The Holder, personally or by attorney, may in its discretion without notice or demand proceed to protect and enforce its rights by a
suit or suits in equity or at law, whether for damages or for the specific performance of any covenant or agreement contained in this Note or the Note Agreement, or in aid of the execution of any power herein or therein granted, or for any
foreclosure, or for the enforcement of any other appropriate legal or equitable remedy, as the Holder shall deem effectual to protect and enforce any of its rights or duties hereunder or thereunder. Borrower agrees to pay all of Holder’s
out-of-pocket expenses, including reasonable attorneys’ fees and legal expenses, whether or not a suit is commenced, incurred by the Holder. 
  
 No remedy conferred upon or reserved to the Holder in this Note or the Note Agreement is intended to be exclusive of any other remedy or remedies, and
each and every such remedy shall be cumulative, and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute. 
  
 No delay or omission of the Holder to exercise any right or power accruing upon any Event of Default shall impair any such
right or power, or shall be construed to be a waiver of any such Event of Default or an acquiescence therein; and every power and remedy given by this Note to the Holder may be exercised from time to time and as often as may be deemed expedient by
the Holder. 
  
 The exercise of remedies and certain other rights
of the Holder are subject to the terms of the Subordination Agreement referred to on the first page of this Note. 
  

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 The Borrower hereby waives presentment, demand of payment, protest and notice of non-payment and of
protest and any and all other notices and demands whatsoever. 
  
 This Note shall be governed by the laws of the State of Kansas. 
  

			
	BORROWER:
	 
	 QC HOLDINGS, INC.

		
	By:	 	 /s/    Don Early

	 	 	

	 	 	 Don Early
 President

  

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