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October 19, 1999
Mr. Michael L. Neher
1870 Bentbrooke Trail
Lawrenceville, GA 30043
Dear Mike:
The following are the terms and conditions of your employment agreement with The
Credit Store, Inc.:
1. Employment will begin on November 8, 1999, as Senior Vice President with
responsibility for for Non-Card Resolutions and Portfolio Divestitures.
The annual salary for your position will be $135,000, with pay periods
occurring on the 15th and last day of each month. You will also be
eligible to participate in all employee benefit plans effective the first
day of the month following employment.
2. You are being hired as an employee at-will. Should your employment be
terminated by the company prior to the end of your first year of
employment, you will be given 6 months severance pay which shall be
distributed to you as salary during the severance period.
3. Since you are relocating to Sioux Falls, South Dakota, we will pay
relocation costs as outlined in the attached Relocation Policy.
4. You will receive 10,000 stock options to be issued on and vested as of
your first date of employment. The option price will be the market price
of the stock as the end of business on your first date of employment. The
options will be issued on a standard form as previously approved by the
Board of Directors.
5. You understand that if you leave our employ, you will not compete with our
business for two years from the date of your departure, nor will you use,
in any way, any proprietary or confidential information obtained in the
course of your employment. A copy of the Confidentiality and
Non-Competition Agreement that you will be required to sign as a condition
of your employment is attached hereto.
6. You will be eligible to receive a cash performance bonus based upon the
average monthly net cash collections derived from non-card resolutions
(this does not include revenue from portfolio sales). At the end of the
first twelve full calendar months of your employment, if the average
monthly net cash collections derived from non-card resolutions divided by
the average gross principal amount of charged-off debt owned by The Credit
Store or its wholly owned subsidiaries exceeds:
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o 19 basis points, then you shall be eligible to receive a bonus equal
to $22,500;
o 22 basis points, then you shall be eligible to receive an additional
bonus equal to $22,500; and
o 25 basis points, then you shall be eligible to receive an additional
bonus equal to $22,500;
The total bonus you are eligible to receive shall be paid to you in four (4)
equal quarterly installments during the second year of your employment. If you
voluntarily terminate your employment for any reason prior to the due date of
any quarterly installment of your bonus, you shall not receive any installments
of your bonus that first become due after your voluntary termination of your
employment.
Enclosed also is the Confidentiality and Noncompetition Agreement for your
review and signature. Please confirm our understanding, of your employment, by
signing this letter, as indicated below and returning both documents in the
enclosed envelope.
If you have any questions, please call me.
Sincerely, Confirmed and Agreed to:
/s/ Kevin T. Riordan /s/ Michael L. Neher
- ----------------------------- -----------------------------
Kevin T. Riodan, President Michael L. Neher
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THE CREDIT STORE
RELOCATION POLICY
o The Company will reimburse the employee for up to two house hunting trips
not to exceed seven days total. Reimbursement will include all expenses,
within reasonable limits incurred by the employee and their family for
travel, lodging, three meals per day for the employee and their family, and
car rental, if necessary. Receipts are required for reimbursement.
o If you being working in Sioux Falls before finding a home and moving, the
Company will pay for interim living expenses for up to eight weeks for the
employee and their family.
o The Company will reimburse the cost of meals, lodging and mileage for the
employee and their family while enroute to the new residence. Receipts are
required. Travel will be by the most direct route, without reimbursement
for unnecessary stop overs. Mileage at the current Company rate of $.315
per mile will be paid for one car.
o The transportation of the employee's household goods will be arranged by
the Director of Human Resources.
o The Company will pay for all reasonable charges for packing at origin and
unpacking the truck at the destination; the costs for one pick-up at origin
and one delivery at the destination; and normal appliance servicing, such
as securing motors in washers, dryers and refrigerators during packing and
unpacking.
o Expenses not eligible for reimbursement include, but are not limited to:
o Storage charges;
o Unpacking of boxes at the new location;
o Cleaning services at either location;
o Transportation of an automobile by the moving company;
o Transportation of pets;
o Set-up of play equipment;
o Transportation of boats;
o Cost of special insurance or handling of items of extraordinary value;
o Overtime charges due to a week-end or holiday delivery.
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o Employees who are homeowners and who purchase a home at the new location
within six months of employment will be reimbursed for closing costs on the
purchase of a new home. Reimbursed expenses include customary and usual
fees for loan origination (for a maximum or 1% or $1,000), mortgage
registration, appraisal, recording, assumption, attorney title work, and
lender's title insurance if required by the lender.
o Employees who are homeowners and who sell their home within six months of
their employment, will be reimbursed for the realtor's commission on the
sale of their home.
o Employees who are homeowners at their previous location and are buying a
home at the new location will receive a $2,500 settling in allowance to
cover miscellaneous expenses incurred in moving. The miscellaneous moving
allowance is given to assist in the cost of services and goods not
reimbursed by the Company. These services include, but are not limited to,
loan discount fees, license fees, rental deposits, utility deposits,
draperies, costs of moving automobiles on the moving van, take down and set
up of play equipment, and movement of pets and boats.
Eligibility for relocation benefits ends if the employee leaves the Company.
This includes, but is not limited to any pending payments and tax coverage.
Additionally, if prior to six months after the agreed upon employment date, the
employee voluntarily terminates their employment, or if their employment is
involuntarily terminated for any reason, the employee would be responsible for
repaying the relocation allowances and expenses.