Document:

Exhibit
10.1

AMENDMENT NO. 3,
dated as of September 29, 2006 (this “Amendment No. 3”), to the Credit
Agreement dated as of January 25, 2006 (as amended prior to the date hereof,
the “Credit Agreement”), among SHUFFLE MASTER, INC. (the “Borrower”),
DEUTSCHE BANK AG CAYMAN ISLANDS BRANCH, as a lender (the “Lender”),
DEUTSCHE BANK AG NEW YORK BRANCH, as administrative agent (the “Administrative
Agent”) and DEUTSCHE BANK SECURITIES INC. as sole arranger and sole
book-runner.

A.            Pursuant
to the Credit Agreement, the Lender has extended credit to the Borrower
pursuant to the terms and subject to the conditions set forth therein.

B.            The
Borrower has requested that the Lender agree, subject to the conditions and
terms set forth in this Amendment No. 3, to amend Credit Agreement, as set
forth below.

C.            As
of the Amendment No. 3 Effective Date (as defined below), the Lender is the
only lender party to the Credit Agreement.

D.            The
Lender is willing to amend the Credit Agreement pursuant to the terms and
subject to the conditions set forth herein.

E.             Capitalized
terms used but not defined herein have the meanings assigned to them in the
Credit Agreement.

Accordingly, in consideration of the mutual agreements
herein contained and other good and valuable consideration, the sufficiency and
receipt of which are hereby acknowledged, and subject to the conditions set
forth herein, the parties hereto hereby agree as follows:

SECTION 1.           Amendment
to Section 2.05.  Section 2.05 of the
Credit Agreement is hereby deleted in its entirety and replaced with the
following:

“The Loan will mature on October 31, 2006.”

SECTION 2.              Representations
and Warranties.  The Borrower
represents and warrants to the Administrative Agent and to each of the Lenders
that:

(a)           This Amendment No. 3 has been duly
executed and delivered by the Borrower and constitutes its legal, valid and
binding obligation enforceable in accordance with its terms, except to the
extent that the enforceability thereof may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws generally
affecting creditors’ rights and by equitable principles (regardless of whether
enforcement is sought in equity or at law).

(b)           After giving effect to this Amendment
No. 3, the representations and warranties of each Credit Party set forth in the
Credit Documents are true and correct in all material respects on and as of the
Amendment No. 3 Effective Date, except to the extent such representations and
warranties expressly relate to an earlier date (in which case such
representations and warranties were true and correct in all material respects
as of such earlier date).

 

(c)           Immediately after giving effect to
this Amendment No. 3, no Default or 
Event of Default has occurred and is continuing.

SECTION 3.              Conditions
to Effectiveness.  This Amendment No.
3 shall become effective on the date (the “Amendment No. 3 Effective Date”)
on which each of the following conditions is satisfied:

(a)           The
Administrative Agent (or its counsel) shall have received from the Lender, the
Borrower and the Guarantors, a counterpart of this Amendment No. 3 signed on behalf
of such party;

(b)           All
corporate and other proceedings taken or to be taken in connection with this
Amendment No. 3 and all documents incidental thereto, whether or not referred
to herein, shall be reasonably satisfactory in form and substance to the Administrative
Agent; and

(c)           The
representations and warranties in Section 2 of this Amendment No. 3 shall
be true and correct.

Upon satisfaction
of the conditions precedent set forth above, the Administrative Agent shall
promptly notify the Borrower and the Lenders of its determination that this
Amendment No. 3 has become effective, which determination shall, absent
manifest error, be conclusive and binding on the Borrower and the Lenders for
all purposes.  In addition, the Borrower
agrees to pay a fee of $100,000 in consideration for the execution and
effectiveness of this Amendment No. 3, such fee to be due and payable on
Friday, October 6, 2006; provided that the Borrower shall have no liability for
such fee if the Amendment No. 3 Effective Date does not occur.

SECTION 4.              Credit
Agreement.  Except as expressly set
forth herein, this Amendment No. 3 shall not by implication or otherwise limit,
impair, constitute a waiver of, or otherwise affect the rights and remedies of
the Lenders, the Administrative Agent, the Borrower or any other Credit Party
under the Credit Agreement or any other Credit Document, and shall not alter,
modify, amend or in any way affect any of the terms, conditions, obligations,
covenants or agreements contained in the Credit Agreement or any other Credit
Document, all of which are ratified and affirmed in all respects and shall
continue in full force and effect.  Nothing
herein shall be deemed to entitle the Borrower to any future consent to, or
waiver, amendment, modification or other change of, any of the terms,
conditions, obligations, covenants or agreements contained in the Credit
Agreement or any other Credit Document in similar or different circumstances.  After the Amendment No. 3 Effective Date, any
reference to the Credit Agreement shall mean the Credit Agreement as modified
hereby, provided that any reference in the Credit Agreement to the date of the
Credit Agreement, as modified hereby, shall in all instances remain as of
January 25, 2006, and references in the Credit Agreement to “the date hereof”
and “the date of this Agreement,” and phrases of similar import, shall in all instances
be and continue to refer to January 25, 2005, and not the date of this
Amendment No. 3.  This Amendment No. 3
shall constitute a “Credit Document” for all purposes of the Credit Agreement
and the other Credit Documents.

SECTION 5.              Governing
Law.  THIS AMENDMENT NO. 3 AND THE
RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE 

 2
 

 

CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE
LAW OF THE STATE OF NEW YORK.  ANY
LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AMENDMENT NO. 3 MAY BE BROUGHT
IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN
DISTRICT OF NEW YORK, IN EACH CASE WHICH ARE LOCATED IN THE COUNTY OF NEW YORK,
AND, BY EXECUTION AND DELIVERY OF THIS AMENDMENT NO. 3, THE BORROWER HEREBY
IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND
UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS.

SECTION 6.              Counterparts.  This Amendment No. 3 may be executed in any
number of counterparts and by the different parties hereto on separate
counterparts, each of which when so executed and delivered shall be an
original, but all of which shall together constitute one and the same
instrument.  A set of counterparts
executed by all the parties hereto shall be lodged with the Borrower and the
Administrative Agent.

SECTION 7.              Headings.  The headings of the several sections and
subsections of this Amendment No. 3 are inserted for convenience only and shall
not in any way affect the meaning or construction of any provision of this
Amendment No. 3.

SECTION 8.              Severability.  Any provision of this Amendment No. 3 held to
be invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.  The parties shall endeavor
in good-faith negotiations to replace the invalid, illegal or unenforceable provisions
with valid provisions, the economic effect of which comes as close as possible
to that of the invalid, illegal or unenforceable provisions.

 3

 

IN WITNESS WHEREOF, the parties hereto have caused
this Amendment No. 3 to be duly executed by their respective authorized
officers as of the day and year first written above.

	
  

  	
  SHUFFLE MASTER, INC.

  
	
   

  	
  By:

  	
   

  	
  /s/ Mark L. Yoseloff

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Mark L. Yoseloff

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  CEO & COB

  	
   

  
	
   

  	
  SHUFFLE MASTER
  INTERNATIONAL, INC.

  
	
   

  	
  By:

  	
   

  	
  /s/ Mark L. Yoseloff

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Mark L. Yoseloff

  
	
   

  	
   

  	
   

  	
  Title:

  	
  CEO & COB

  	
   

  
	
   

  	
  SHUFFLE UP PRODUCTIONS,
  INC.

  
	
   

  	
  By:

  	
   

  	
  /s/ Mark L. Yoseloff

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Mark L. Yoseloff

  
	
   

  	
   

  	
   

  	
  Title:

  	
  CEO & President

  

 S-1
 

 

 

	
  

  	
  DEUTSCHE BANK AG NEW YORK BRANCH, Individually and
  as Administrative Agent

  
	
   

  	
  By:

  	
   

  	
  /s/ Steven P. Lapham

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Steven P. Lapham

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
  By:

  	
   

  	
  /s/ Brenda Casey

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Brenda Casey

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Director

  

 S-2
 

 

 

	
  To Approve Amendment No. 3:

  
	
  DEUTSCHE BANK AG CAYMAN
  ISLANDS BRANCH, 

  as a Lender

  
	
  By:

  	
   

  	
  /s/ Steven P. Lapham

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Steven P. Lapham

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Managing Director

  
	
  By:

  	
   

  	
  /s/ Brenda Casey

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Brenda Casey

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Director

  
						

 

 S-3EXHIBIT
4.1

FIRST INVESTORS FINANCIAL SERVICES GROUP, INC.

2002
NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

(Amended and Restated Through July
10, 2006)

1.             Purpose of Plan

This
2002 Non-Employee Director Stock Option Plan (the “Plan”) is intended to
promote the interests of First Investors Financial Services Group, Inc., a
Texas corporation (the “Company”), and its Affiliates (as defined below) and
stockholders by attracting and retaining qualified non-employee directors by
giving them the opportunity to acquire a proprietary interest in the Company
and an increased personal interest in its continued success and progress. The
rights to purchase shares of Common Stock (defined below) of the Company (“Options”;
which term includes all options granted pursuant to this Plan, including the “Initial
Option Grant”, the “Automatic Option Grant”, “Discretionary Options” and “Replacement
Options”, each as defined below) granted under the Plan shall not be qualified
as “incentive stock options” within the meaning of Section 422 of the Internal
Revenue Code of 1986, as amended (“Code”). 
As used in this Plan, the term “Affiliates” means any parent of the
Company and any subsidiary of the Company within the meaning of Rule 12b-2
under the Securities Exchange Act of 1934, as amended.

2.             Administration of the Plan

(a)           The
Board of Directors shall administer this Plan (the “Board”).  The Board shall have full power and authority
to determine the terms and provisions of respective option agreements (which
need not be identical) and to interpret the provisions and supervise the
administration of this Plan. All decisions and selections made by the Board
pursuant to the provisions of this Plan shall be made by a majority of its
members that are not participants in this Plan. Any decision reduced to writing
and signed by all of the members shall be fully effective as if it had been
made by such a majority at a meeting duly held.

(b)           The
Board may provide that any Option granted under this Plan shall be subject to,
and may not be exercised before, the approval of this Plan at an annual or
special meeting of the shareholders of the Company, by the affirmative vote of
the holders of a majority of the outstanding shares of the Company present, or
represented by proxy, and entitled to vote thereat.

(c)           Subject
to the express provisions of this Plan, the Board shall have full authority to
interpret the Plan, to prescribe, amend and rescind rules and regulations
relating to it, to determine the details and provisions of each option
agreement evidencing an Option, and to make all other determinations necessary
or advisable in the administration of the Plan including, without limitation,
the amending or altering of any Options granted hereunder as may be required to
comply with any applicable federal or state laws or regulations or the rules of
any exchange or automated quotation system upon which the Company’s Common
Stock may be admitted to listing or traded from time to time.

(d)           No
member of the Board shall be liable to any person for any determination or
other act or omission made in good faith with respect to the Plan or any
Option. All immunities and rights of indemnity available to members of the
Board, pursuant to the Articles of Incorporation of the Company or otherwise,
shall apply to any act or omission relating to the Plan or any Option.

3.             Designation of Participants

The
persons eligible for participation in this Plan are non-employee directors of
the Company and its Affiliates (“Optionees”).

 

4.             Stock Reserved

Subject
to adjustment as provided in Paragraph 10, a total of 900,000 shares of Common
Stock, par value $.001 per share, of the Company (“Common Stock”) shall be
subject to this Plan.  The shares of
Common Stock subject to this Plan shall consist of unissued shares or
previously issued shares reacquired and held by the Company or its Affiliates,
and such number of shares shall be and is hereby reserved for sale for such
purpose.  Any of such shares which way
remain unsold and which are not subject to outstanding Options at the expiration
of this Plan shall cease to be reserved for the purpose of this Plan, but until
termination of this Plan and the expiration, exercise or lapse of all Options
granted hereunder, the Company shall at all times reserve a sufficient number
of shares to meet the requirements of this Plan.  Should any Option expire or be canceled prior
to its exercise or relinquishment in full, the shares theretofore subject to
such Option may again be subject to an Option under this Plan, except that
shares purchased pursuant to any Option or the portion thereof relinquished and
not issued upon such relinquishment shall not again be available for Options
under this Plan.

5.                                      Automatic and Discretionary Option Grants; Replacement Option Grants

Each
Optionee shall automatically be granted under the Plan an Option to purchase
28,000 shares of Common Stock (“Initial Option Grant”) on July 14, 2006.  Each Optionee shall, provided there are then
sufficient shares of Common Stock available for grant hereunder, automatically
be granted a further Option to purchase 28,000 shares of Common Stock (“Automatic
Option Grant”) on the first July 15th following his or her election as a director
and on each subsequent July 15th thereafter (the “Automatic Grant Date”) so
long as he or she has served as a director of the Company during the preceding
fiscal year and continues to serve as a director as of the Automatic Grant
Date.  In the event that the U.S.
securities markets are closed on an Automatic Grant Date, the Automatic Grant
Date shall be the first day on which such markets were open immediately
preceding such date. The Initial Option Grant and each Automatic Option Grant
shall vest in equal installments on each of first three anniversaries of the
Automatic Grant Date.

The
Board may also grant Options (“Discretionary Options”) under the Plan to
Optionees based upon the annual financial performance of the Company.  The Board shall determine the financial
performance criteria to be utilized, the methods employed to measure such
performance, the number of shares underlying any grants that shall be made, the
vesting schedule thereof, and all other terms of such Options.  If earned, Discretionary Options will be made
on the July 15th first following the fiscal year in which
earned.

For
convenience of administration, the Board may also issue under this Plan options
to purchase Common Stock that replace options to purchase Common Stock issued
to persons prior to the adoption of this Plan (“Replacement Options”);
provided, that the persons receiving any such Replacement Options are qualified
to participate herein.  In issuing any
Replacement Options, the Board shall have the same power and authority to
establish its terms as in the case of Discretionary Options.

6.             Option Price

(a)           The
purchase price of each share of Common Stock subject to an Option granted under
this Plan shall not be less than the fair market value of such share on the
date the Option is granted.

(b)           The
fair market value of a share of Common Stock on a particular date shall be
deemed to be the average of the reported “high” and “low” sales prices for such
shares as reported by NASDAQ, the National Quotation Bureau Incorporated, or
another reputable reporting source selected by the Board (corrected for obvious
typographical errors), or if such shares are not so reported, then the average
of the reported “high” and “low” sales prices on the largest national
securities exchange (based on the aggregate dollar value of securities listed)
on which such shares are listed or traded, or if such shares are not listed or
traded on any national securities exchange, then the average closing bid and
asked prices reported by the National Quotation Bureau Incorporated, or, in all
other cases, the value established by the Board in good faith.

7.             Option Period

Each
Option granted under this Plan shall terminate and be of no force and effect
with respect to any shares

 

not previously
taken up by the Optionee upon the expiration of ten years from the date of
granting of such Option or such earlier date as the Board, in its sole
discretion, may prescribe at the date of grant.

8.             Exercise of Options; Disposition of Common
Stock

(a)           The
Board, in granting Options hereunder, shall have discretion to determine the
terms upon which such Options shall be exercisable, subject to the applicable
provisions of this Plan. The Board may determine to permit any Option granted
hereunder to be exercisable in whole at any time or in specified installments
from time to time.

(b)           Options
may not be transferred and shall be exercised solely by the Optionee during his
lifetime or after his death by the person or persons entitled thereto under the
Optionee’s will or the laws of descent and distribution.

(c)           The
purchase price of the shares as to which an Option is exercised shall be paid
in full at the time of the exercise. Such purchase price shall be payable in
cash or at the option of the holder of such Option, with the consent of the
Board, in Common Stock theretofore owned by such holder (or any combination of
cash and Common Stock). For purposes of determining the amount, if any, of the
purchase price satisfied by payment of Common Stock, such Common Stock shall be
valued at its fair market value on the date of exercise in accordance with
Paragraph 6(b). Any Common Stock delivered in satisfaction of all or a portion
of the purchase price shall be appropriately endorsed for transfer and assigned
to the Company. The Board may, in its discretion and to the extent permitted by
the laws of the State of Texas, determine to permit the holder of an Option to
satisfy the purchase price of the shares as to which an Option is exercised by
delivery of the Option holder’s promissory note, such note to be subject to
such terms and conditions as the Board may determine. The Board may, in its discretion
and to the extent permitted by the laws of the State of Texas, determine to
cause the Company to lend to the holder of an Option funds, on such terms and
conditions as the Company may determine to be appropriate, sufficient for the
holder of an Option to pay the purchase price of the shares as to which such
Option is to be exercised. No holder of an Option shall be, or have any of the
rights or privileges of, a shareholder of the Company in respect of any shares
purchasable upon the exercise of any part of an Option unless and until
certificates representing such shares shall have been issued by the Company to
such holder.

(d)           Unless
waived by the Board, which it may give or withhold in its sole discretion and
without liability, the holder of any Option shall not make any disposition of
any share or shares of Common Stock issued to him pursuant to his exercise of
an Option granted under this Plan within six months follow the grant of such
Option, except by will or the laws of descent and distribution.

9.             Relinquishment of Options; Assignment

(a)           The
Board, in granting Options hereunder, shall have discretion to determine
whether or not Options shall include a right of relinquishment as hereinafter
provided by this Paragraph 9. The Board shall also have discretion to determine
whether an option agreement evidencing an Option initially granted by the Board
without a right of relinquishment shall be amended or supplemented to include
such a right of relinquishment. Neither the Board nor the Company shall be
under any obligation or incur any liability to any person by reason of the
Board’s refusal to grant or include a right of relinquishment in any Option
granted hereunder or in any option agreement evidencing the same. Subject to
the Board’s determination in any case that the grant by it of a right of
relinquishment is consistent with Paragraph 1 hereof, any Option granted under
this Plan, and the option agreement evidencing such Option, may provide:

(i)            That
the Optionee, or his heirs or legal representatives to the extent entitled to
exercise the Option under the terms thereof, in lieu of purchasing the entire
number of shares subject to purchase thereunder, shall have the right to
relinquish all or any part of the then unexercised portion of the Option (to
the extent then exercisable) for a number of shares of Stock, for an amount of
cash or for a combination of Stock and cash to be determined in accordance with
the following provisions of this clause (i):

(A)          the
written notice of exercise of such right of relinquishment shall state the
percentage, if any, of the Appreciated Value (as defined below) that the
Optionee elects to receive in cash (“Cash Percentage”), such Cash Percentage to
be in increments of 10% of such Appreciated

 

Value up to 100% thereof;

(B)           the
number of shares of Stock of the Company, if any, issuable pursuant to such
relinquishment shall be the number of such shares, rounded to the next greater
number of full shares, as shall be equal to the quotient obtained by dividing
(x) the difference between (1) the Appreciated Value and (2) the result
obtained by multiplying the Appreciated Value and the Cash Percentage by (y)
the then current market value per share of the Stock;

(C)           the
amount of cash payable pursuant to such relinquishment shall be an amount equal
to the Appreciated Value less the aggregate current market value of the Stock
issued pursuant to such relinquishment, if any, which cash shall be paid by the
Company subject to such conditions as are deemed advisable by the Board to permit
compliance by the Company with the withholding provisions applicable to
employers under the Code and any applicable state income tax laws; and

(D)          for
the purposes of this clause (i), “Appreciated Value” means the excess of (x)
the aggregate current market value of the shares of Stock covered by the Option
or the portion thereof to be relinquished over (y) the aggregate purchase price
for such shares specified in such Option;

(ii)           that
such right of relinquishment may be exercised only upon receipt by the Company
of a written notice of such relinquishment which shall be dated the date of
election to make such relinquishment; and that, for the purposes of this Plan,
such date of election shall be deemed to be the date when such notice is sent
by registered or certified mail, or when receipt is acknowledged by the
Company, if mailed by other than registered or certified mail or if delivered
by hand or by any telegraphic communications equipment of the sender or
otherwise delivered; provided, that, in the event the method just described for
determining such date of election shall not be or remain consistent with the
provisions of Section 16(b) of the Exchange Act or the rules and regulations
adopted by the Commission thereunder, as presently existing or as may be
hereafter amended, which regulations exempt from the operation of Section 16(b)
of the Exchange Act in whole or in part any such relinquishment transaction,
then such date of election shall be determined by such other method consistent
with Section 16(b) of the Exchange Act or the rules and regulations thereunder
as the Board shall in its discretion select and apply;

(iii)          that
the “current market value” of a share of Common Stock on a particular date
shall be deemed to be its fair market value on that date as determined in
accordance with Paragraph 6(b); and

(iv)          that
the Option, or any portion thereof, may be relinquished only to the extent that
(A) it is exercisable on the date written notice of relinquishment is received
by the Company, (B) the Board, subject to the provisions of Paragraph 9(b),
shall consent to the election of the holder to relinquish such Options in whole
or in part for cash or for shares of Common Stock equal to all or some portion
of the Appreciated Value as set forth in such written notice of relinquishment
and (C) the holder of such Option pays, or makes provisions satisfactory to the
Company for the payment of, any taxes which the Company is obligated to collect
with respect to such relinquishment.

(b)           The
Board shall have sole discretion to consent to or disapprove, and neither the
Board nor the Company shall be under any liability by reason of the Board’s
disapproval of, any election by a holder of an Option to relinquish such Option
in whole or in part for cash or for shares of Common Stock equal to all or some
portion of the Appreciated Value as provided in Paragraph 9(a).

(c)           The
Board, in granting Options hereunder, shall have discretion to determine the
terms upon which such Options shall be relinquished, subject to the applicable
provisions of this Plan, and including such provisions as are deemed advisable
to permit the exemption from the operation from Section 16(b) of the Exchange
Act of any such relinquishment transaction, and Options outstanding, and option
agreements evidencing such Options, may be amended, if necessary, to permit
such exemption. If an Option is relinquished, such Option may be deemed to have
been exercised to the extent of the number of shares of Common Stock covered by
the Option or part thereof which is relinquished, and no further Options may be
granted covering such shares of Common Stock.

 

(d)           Neither
any Option nor any right to relinquish the same to the Company as contemplated
by this Paragraph 9 shall be assignable or otherwise transferable except by
will or the laws of descent and distribution.

(e)           Unless
waived by the Board, which it may give or withhold in its sole discretion and
without liability, no right of relinquishment may be exercised within the first
six months after the initial award of any Option containing, or the amendment
or supplementation of any existing option agreement adding, the right of
relinquishment, except by will or the laws of descent and distribution.

10.          Stock
Dividends, Stock Splits and Certain Other Corporate Transactions

(a)           The
existence of this Plan and Options granted hereunder shall not affect the right
or power of the Company or its shareholders to make or authorize any or all
adjustments, recapitalizations, reorganizations or other changes in the Company’s
capital structure or its business, or any merger or consolidation of the
Company, or any issue of bonds, debentures or preferred or preference stocks
ranking prior to or affecting the Common Stock or the rights attendant thereto,
or the dissolution or liquidation of the Company, or any sale or transfer of
all or any part of the Company’s assets or business, or any other corporate act
or proceeding, whether of a similar character or otherwise.

(b)           The
shares with respect to which Options may be granted hereunder are shares of
Common Stock of the Company as presently constituted. If, and whenever, prior
to the delivery by the Company of all of the shares of the Common Stock which
are subject to Options granted hereunder, the Company shall effect a subdivision
or consolidation of shares or other capital readjustment, the payment of a
stock dividend, a stock split, a combination of shares, a recapitalization or
other increase or reduction of the number of shares of the Common Stock
outstanding without receiving consideration therefor in money, services or
property, the number of shares of Stock available under this Plan and the
number of shares of Stock with respect to which Options granted hereunder may
thereafter be exercised, shall, (i) in the event of an increase in the number
of outstanding shares, be proportionately increased, and the exercise price
payable per share shall be proportionately reduced, and (ii) in the event of a
reduction in the number of outstanding shares, be proportionately reduced, and
the exercise price payable per share shall be proportionately increased.

(c)           If
the Company is reorganized, merged or consolidated or is otherwise a party to a
plan of exchange with another corporation pursuant to which reorganization,
merger, consolidation or plan of exchange shareholders of the Company receive
any shares of Common Stock or other securities or if the Company shall
distribute (“Spin off”) securities of another corporation to its shareholders,
there shall be substituted for the shares subject to the unexercised portions
of outstanding Options an appropriate number of shares of (i) each class of
stock or other securities which were distributed to the shareholders of the
Company in respect of such shares in the case of a reorganization, merger,
consolidation or plan of exchange, or (ii) in the case of a Spin Off, the
securities distributed to shareholders of the Company together with shares of
Common Stock, such number of shares or securities to be determined by the Board
of Directors; provided, however, that all such Options may be canceled by the
Company as of the effective date of (x) a reorganization, merger,
consolidation, plan of exchange or Spin Off or (y) any dissolution or
liquidation of the Company, by giving notice to each holder thereof or his
personal representative of its intention to do so and by permitting the
purchase for a period of at least thirty days during the sixty days next
preceding such effective date of all of the shares subject to such outstanding
Options, without regard to any installment provisions set forth in the option
agreement; and provided further that in the event of a Spin Off, the Company
may, in lieu of substituting securities or accelerating and canceling Options
as contemplated above, elect (i) to reduce the purchase price for each share of
Stock subject to an outstanding Option by an amount equal to the fair market
value, as determined in accordance with the provisions of Paragraph 6(b), of
the securities distributed in respect to each outstanding share of Common Stock
in the Spin Off or (ii) to reduce proportionately the purchase price per share
and to increase proportionately the number of shares of Stock subject to each
Option in order to reflect the economic benefits inuring to the shareholders of
the Company as a result of the Spin Off.

(d)           Except
as hereinabove expressly provided, the issue by the Company of shares of stock
of any class, or securities convertible into or exchangeable for shares of
stock of any class, for cash or property, or for labor or services, either upon
direct sale or upon the exercise of rights or warrants to subscribe therefor,
or upon conversion of

 

shares or
obligations of the Company convertible into or exchangeable for shares of stock
of any class shall not affect, and no adjustment by reason thereof shall be
made with respect to, the number of shares of Common Stock subject to Options
granted hereunder.

11.          Purchase for Investment

Unless
the offering of the Options and shares of Common Stock covered by this Plan
have been registered under the Securities Act of 1933, as amended, or the
Company has determined that such registration is unnecessary, each person
exercising an Option under this Plan may be required by the Company to (i) give
a representation in writing that he is acquiring such shares for his own
account for investment and not with a view to, or for sale in connection with,
the distribution of any part thereof, (ii) agree in writing not to sell or
otherwise dispose of such shares without registration in the absence of an
opinion of counsel satisfactory to the Company that such registration is not
required; and (iii) agree that the certificate or certificates evidencing such
shares may bear restrictive legends to the foregoing effect.

12.          Taxes

(a)           The
Company may make such provisions as it may deem appropriate for the withholding
of any taxes which it determines is required in connection with any Options
granted under this Plan.

(b)           Notwithstanding
the terms of Paragraph 12(a), any Optionee may pay all or any portion of the
taxes required to be withheld by the Company or paid by him in connection with
the exercise of an Option by election to have the Company withhold shares of
Stock, or by delivering previously owned shares of Common Stock, having a fair
market value, determined in accordance with Paragraph 6(b), equal to the amount
required to be withheld or paid. An Optionee must make the foregoing election
on or before the date that the amount of tax to be withheld is determined (“Tax
Date”). All such elections are irrevocable and subject to disapproval by the
Board in its sole discretion. Elections by persons who are subject to the short-swing
profits recapture provisions of Section 16(b) of the Exchange Act (“Covered
Optionee”) are subject to the additional restriction that such election may not
be made within six months of a grant of an Option, unless waived by the Board,
which it may give or withhold in its sole discretion and without
liability.  Where the Tax Date in respect
of an Option is deferred until six months after exercise and the Covered
Optionee elects share withholding, the full amount of shares of Common Stock
will be issued or transferred to him upon exercise of the Option, but he shall
be unconditionally obligated to tender back to the Company the number of shares
necessary to discharge the Company’s withholding obligation or his estimated
tax obligation on the Tax Date.

13.          Effective Date of Plan

This
Plan shall be effective as of September 10, 2002.

14.          Amendment
or Termination

The Board may amend,
alter or discontinue this Plan, except that no amendment or alteration shall be
made which would impair the rights of any Optionee under any Option theretofore
granted, without his consent.

15.          Government Regulations

This
Plan, and the grant and exercise of Options thereunder, and the obligation of
the Company to sell and deliver shares under such Options, shall be subject to
all applicable laws, rules and regulations, and to such approvals by any
governmental agencies or national securities exchanges as may be required.

***

Approved
by the Board of Directors of First Investors Financial Services Group, Inc., on
July 18, 2002 and amended on July 10, 2006.

***

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