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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left">
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt"><b></b>
</div>
<div align="center" style="font-size: 10pt"><b></b></div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>1. Organization and Business:</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Portfolio Recovery Associates, LLC (“PRA”) was formed on March 20, 1996. Portfolio Recovery
Associates, Inc. (“PRA Inc”) was formed in August 2002. On November 8, 2002, PRA Inc completed its
initial public offering (“IPO”) of common stock. As a result, all of the membership units and
warrants of PRA were exchanged on a one to one basis for warrants and shares of a single class of
common stock of PRA Inc. PRA Inc owns all outstanding membership units of PRA, PRA Holding I, LLC,
PRA Holding II, LLC, PRA Holding III, LLC (“PRA Holding III”), PRA Receivables Management, LLC
(formerly d/b/a Anchor Receivables Management), PRA Location Services, LLC (d/b/a IGS Nevada), PRA
Government Services, LLC (d/b/a RDS) and MuniServices, LLC. On March 15, 2010, PRA Inc acquired
62% of the membership units of Claims Compensation Bureau, LLC (“CCB”). The business of PRA Inc,
a Delaware corporation, and its subsidiaries (collectively, the “Company”) revolves around the
detection, collection, and processing of both unpaid and normal-course receivables originally owed
to credit grantors, governments, retailers and others. The Company’s primary business is the
purchase, collection and management of portfolios of defaulted consumer receivables. These accounts
are purchased from sellers of finance receivables and collected by a highly skilled staff whose
purpose is to locate and contact customers and arrange payment or resolution of their debts. The
Company, through its Litigation Department, collects accounts judicially, either by using its own
attorneys or by contracting with independent attorneys throughout the country through whom the
Company takes legal action to satisfy customer debts. The Company also provides services for
clients on either a commission or transaction-fee basis. Clients include entities in the financial
services, auto, retail, utility, health care and government sectors. Services provided to these
clients include obtaining location information for clients in support of their collection
activities (known as skip tracing), and the management of both delinquent and non-delinquent
receivables for government entities. In addition, through its newly acquired CCB subsidiary, the
Company provides class action claims settlement recovery services and related payment processing to
its corporate clients.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On December 28, 1999, PRA formed a wholly owned subsidiary, PRA Holding I, LLC (“PRA Holding
I”), and is the sole member. The purpose of PRA Holding I is to enter into leases of office space
and hold the Company’s real property (see Note 10) in Hutchinson, Kansas, Norfolk, Virginia and
other real and personal property.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On June 1, 2000, PRA formed a wholly owned subsidiary, PRA Receivables Management, LLC (d/b/a
Anchor Receivables Management) (“Anchor”) and was the sole initial member. Anchor was organized as
a contingent collection agency and contracted with holders of finance receivables to attempt
collection efforts on a contingent basis for a stated period of time. Anchor became fully
operational during April 2001. The Company purchased the equity interest in Anchor from PRA
immediately after the IPO. The Company ceased its Anchor contingent fee operation during the
second quarter of 2008, but PRA Receivables Management, LLC continues to serve as the operational
entity for the Company’s bankruptcy department.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On October 1, 2004, the Company acquired the assets of IGS Nevada, Inc., a privately held
company specializing in asset-location and debt resolution services (the resulting business is
referred to herein as “IGS”). On September 10, 2004, the Company created a wholly owned
subsidiary, PRA Location Services, LLC d/b/a IGS to operate IGS.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On July 29, 2005, the Company acquired substantially all of the assets and liabilities of
Alatax, Inc., a provider of outsourced business revenue administration, audit and debt
discovery/recovery services for local governments (the resulting business is referred to herein as
“RDS”). Although most of its clients are located in Alabama, RDS, through PRA Government
Services, LLC, a wholly owned subsidiary formed by the Company on June 23, 2005, is expanding into
surrounding states.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On October 13, 2006, PRA formed a wholly owned subsidiary, PRA Holding II, LLC (“PRA Holding
II”), and is its sole member. The purpose of PRA Holding II is to hold the Company’s real property
in Jackson, Tennessee and other real and personal property. PRA Holding II originally purchased
the real property in 2006 and subsequently conveyed it to the Industrial Development Board of the
City of Jackson. The Company leases back the property from the Industrial Board under a long term
Master Industrial Lease Agreement, and has the option to re-purchase the property at any time during
the term of the lease.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On July 1, 2008, the Company acquired 100% of the membership interests of MuniServices, LLC
(the resulting business is referred to herein as “MuniServices”). MuniServices was founded in 1978
and is a provider of revenue
enhancement and related services to state and local governments. The consolidated income
statements include the results of operations of MuniServices for the period from July 1, 2008
through December 31, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On August 1, 2008, the Company acquired substantially all of the assets of Broussard Partners
and Associates, Inc. (“BPA”), which is operating as a part of RDS. BPA, founded in 1995, is a
provider of audit services to parishes in Louisiana. The consolidated income statements include
the results of operations of BPA for the period from August 1, 2008 through December 31, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On October 9, 2009, PRA formed a wholly owned subsidiary, PRA Holding III, LLC (“PRA Holding
III”) d/b/a PRA Cafe. The purpose of PRA Holding III is to own and operate the Company’s employee
café located at the Company’s headquarters on Norfolk, Virginia.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On March 15, 2010, the Company acquired 62% of the membership units of Claims Compensation
Bureau, LLC (“CCB”). CCB is a leading provider of class action claims settlement recovery services
and related payment processing to corporate clients. The consolidated income statements include
the results of operations of CCB for the period from March 15, 2010 through December 31, 2010.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>2. Summary of Significant Accounting Policies:</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>Principles of accounting and consolidation: </b>The consolidated financial statements of the
Company are prepared in accordance with U.S. generally accepted accounting principles and include
the accounts of PRA Inc, PRA, PRA Holding I, PRA Holding II, PRA Holding III, IGS, RDS,
MuniServices and CCB. All significant intercompany accounts and transactions have been eliminated.
Under the guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards
Codification (“ASC”) Topic 280 “Segment Reporting” (“ASC 280”), the Company has determined that it
has several operating segments that meet the aggregation criteria of ASC 280, and therefore, it has
one reportable segment, accounts receivable management, based on similarities among the operating
units including homogeneity of services, service delivery methods and use of technology.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>Cash and cash equivalents: </b>The Company considers all highly liquid investments with a
maturity of three months or less when purchased to be cash equivalents. Included in cash and cash
equivalents are funds held on the behalf of others arising from the collection of accounts placed
with the Company. The balance of the funds held on behalf of others was $1,457,807 and $1,709,673
at December 31, 2010 and 2009, respectively. There is an offsetting liability that is included in
“Accounts payable” on the accompanying consolidated balance sheets.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>Other assets: </b>Other assets consist mainly of prepaid expenses and deposits, line of credit
origination costs and fees and capitalizable internal use software development costs on projects
that are in the development stage.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>Concentrations of credit risk: </b>Financial instruments, which potentially expose the Company to
concentrations of credit risk, consist primarily of cash, cash equivalents and investments. The
Company places its cash and cash equivalents and investments with high quality financial
institutions. At times, cash balances may be in excess of the amounts insured by the Federal
Deposit Insurance Corporation.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>Derivative instruments and hedging activities: </b>The Company accounts for derivatives and
hedging activities in accordance with FASB ASC Topic 815 “Derivatives and Hedging” (“ASC 815”),
which requires entities to recognize all derivative instruments as either assets or liabilities in
the balance sheet at their respective fair values. For derivatives designated in hedging
relationships, changes in the fair value are either offset through earnings against the change in
fair value of the hedged item attributable to the risk being hedged or recognized in accumulated
other comprehensive income or loss until the hedged item is recognized in earnings.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company only enters into derivative contracts that it intends to designate as a hedge of a
forecasted transaction or the variability of cash flows to be received or paid related to a
recognized asset or liability (cash flow hedge). For all hedging relationships, the Company
formally documents the hedging relationship and its risk-management objective and strategy for
undertaking the hedge, the hedging instrument, the hedged item, the nature of the risk being
hedged, how the hedging instrument’s effectiveness in offsetting the hedged risk will be assessed
prospectively and retrospectively, and a description of the method of measuring ineffectiveness.
The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether
the derivatives that are used in hedging transactions are highly effective in offsetting cash flows
of hedged items. For derivative
instruments that are designated and qualify as a cash-flow hedge, the effective portion of the
gain or loss on the derivative is reported as a component of other comprehensive income and
reclassified into earnings in the same period or periods during which the hedged transaction
affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or
hedge components excluded from the assessment of effectiveness are recognized in current earnings.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company discontinues hedge accounting prospectively when it determines that the derivative
is no longer effective in offsetting cash flows of the hedged item, the derivative expires or is
sold, terminated, or exercised, the derivative is dedesignated as a hedging instrument because it
is unlikely that a forecasted transaction will occur, or management determines that designation of
the derivative as a hedging instrument is no longer appropriate.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In all situations in which hedge accounting is discontinued and the derivative is retained,
the Company continues to carry the derivative at its fair value on the balance sheet and recognizes
any subsequent changes in its fair value in earnings. When it is probable that a forecasted
transaction will not occur, the Company discontinues hedge accounting and recognizes immediately in
earnings gains and losses that were accumulated in other comprehensive income.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>Finance receivables and income recognition: </b>The Company’s principal business consists of the
acquisition and collection of pools of accounts that have experienced deterioration of credit
quality between origination and the Company’s acquisition of the accounts. The amount paid for any
pool reflects the Company’s determination that it is probable the Company will be unable to collect
all amounts due according to an account’s contractual terms. At acquisition, the Company reviews
the portfolio both by account and aggregate pool to determine whether there is evidence of
deterioration of credit quality since origination and if it is probable that the Company will be
unable to collect all amounts due according to the account’s contractual terms. If both conditions
exist, the Company determines whether each such account is to be accounted for individually or
whether such accounts will be assembled into pools based on common risk characteristics. The
Company considers expected prepayments and estimates the amount and timing of undiscounted expected
principal, interest and other cash flows for each acquired portfolio and subsequently aggregates
pools of accounts. The Company determines the excess of the pool’s scheduled contractual principal
and contractual interest payments over all cash flows expected at acquisition as an amount that
should not be accreted (nonaccretable difference) based on the Company’s proprietary acquisition
models. The remaining amount, representing the excess of the pool’s cash flows expected to be
collected over the amount paid, is accreted into income recognized on finance receivables over the
remaining estimated life of the pool (accretable yield).
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company accounts for its investment in finance receivables under the guidance of FASB ASC
Topic 310-30 “Loans and Debt Securities Acquired with Deteriorated Credit Quality” (“ASC 310-30”).
Under ASC 310-30, static pools of accounts may be established. These pools are aggregated based on
certain common risk criteria. Each static pool is recorded at cost, which includes certain direct
costs of acquisition paid to third parties, and is accounted for as a single unit for the
recognition of income, payments applied to principal, and loss provision. Once a static pool is
established for a calendar quarter, individual receivable accounts are not added to the pool
(unless replaced by the seller) or removed from the pool (unless sold or returned to the seller).
ASC 310-30 requires that the excess of the contractual cash flows over expected cash flows, based
on the Company’s estimates derived from its proprietary collection models, not be recognized as an
adjustment of revenue or expense or on the balance sheet. ASC 310-30, utilizing the interest
method, initially freezes the yield estimated when the accounts are purchased as the basis for
subsequent impairment testing. Significant increases in actual, or expected future cash flows may
be recognized prospectively, through an upward adjustment of the yield, over a portfolio’s
remaining life. Any increase to the yield then becomes the new benchmark for impairment testing.
Under ASC 310-30, rather than lowering the estimated yield if the collection estimates are not
received or projected to be received, the carrying value of a pool would be written down to
maintain the then current yield and is shown as a reduction in revenue in the consolidated income
statements with a corresponding valuation allowance offsetting finance receivables, net, on the
consolidated balance sheets. Income on finance receivables is accrued quarterly based on each
static pool’s effective yield. Quarterly cash flows greater than the interest accrual will reduce
the carrying value of the static pool. This reduction in carrying value is defined as payments
applied to principal (also referred to as finance receivable amortization). Likewise, cash flows
that are less than the interest accrual will increase, or “accrete,” the carrying balance. The
Company generally does not record accretion in the first six to twelve months of the estimated life
of the pool; accordingly, the Company utilizes either the cost recovery method or cash method when
necessary, as permitted by ASC 310-30, to prevent accretion. The yield is estimated and
periodically recalculated
based on the timing and
amount of anticipated cash flows using the Company’s proprietary collection models. A pool
can become fully amortized (zero carrying balance on the balance sheet) while still
generating cash collections. In this case, all cash collections are recognized as revenue when
received. Under the cash method, revenue is recognized as it would be under the interest method up
to the amount of cash collections. Additionally, the Company uses the cost recovery method when
collections on a particular pool of accounts cannot be reasonably predicted. These cost recovery
pools are not aggregated with other portfolios. Under the cost recovery method, no revenue is
recognized until the Company has fully collected the cost of the portfolio, or until such time that
the Company considers the collections to be probable and estimable and begins to recognize income
based on the interest method as described above. At December 31, 2010 and 2009, the Company had
net finance receivables balances in pools accounted for under the cost recovery method of $1.6
million and $2.9 million, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company establishes valuation allowances, if necessary, for acquired accounts subject to
ASC 310-30 to reflect only those losses incurred after acquisition (that is, the present value of
cash flows initially expected at acquisition that are no longer expected to be collected).
Valuation allowances are established only subsequent to acquisition of the accounts. At December
31, 2010 and 2009, the Company had an allowance against its finance receivables of $76,407,000 and
$51,255,000, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company implements the accounting for income recognized on finance receivables under ASC
310-30 as follows. The Company creates each accounting pool using its projections of estimated
cash flows and expected economic life. The Company then computes the effective yield that fully
amortizes the pool to the end of its expected economic life based on the current projections of
estimated cash flows using the interest method. As actual cash flow results are recorded, the
Company balances those results to the data contained in its proprietary models to ensure accuracy,
then reviews each accounting pool watching for trends, actual performance versus projections and
curve shape (a graphical depiction of the timing of cash flows), sometimes re-forecasting future
cash flows utilizing the Company’s statistical models. The review process is primarily performed
by the Company’s finance staff; additionally, the Company’s operational and statistical staffs may
also be involved. To the extent there is overperformance, the Company will either increase the
yield or release the allowance and consider increasing future cash projections, if persuasive
evidence indicates that the overperformance is considered to be a significant betterment. If the
overperformance is considered more of an acceleration of cash flows (a timing difference), the
Company will adjust estimated future cash flows downward which effectively extends the amortization
period, or take no action at all if the amortization period is reasonable and falls within the
pool’s expected economic life. In either case, the yield may or may not be increased due to the
time value of money (accelerated cash collections). To the extent there is underperformance, the
Company will record an allowance if the underperformance is significant and will also consider
revising estimated future cash flows based on current period information, or take no action if the
pool’s amortization period is reasonable and falls within the currently projected economic life.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company capitalizes certain fees paid to third parties related to the direct acquisition
of a portfolio of accounts. These fees are added to the acquisition cost of the portfolio and
accordingly are amortized over the life of the portfolio using the interest method. The balance of
the unamortized capitalized fees at December 31, 2010, 2009 and 2008 was $3,295,515, $3,231,926 and
$3,078,560, respectively. During the years ended December 31, 2010, 2009 and 2008 the Company
capitalized $1,073,769, $969,927 and $1,250,940, respectively, of these direct acquisition fees.
During the years ended December 31, 2010, 2009 and 2008 the Company amortized $1,010,180, $816,561
and $607,296, respectively, of these direct acquisition fees.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The agreements to purchase the aforementioned receivables include general representations and
warranties from the sellers covering account holder death or bankruptcy and accounts settled or
disputed prior to sale. The representation and warranty period permitting the return of these
accounts from the Company to the seller is typically 90 to 180 days. Any funds received from the
seller of finance receivables as a return of purchase price are referred to as buybacks. Buyback
funds are applied against the finance receivable balance received and are not included in the
Company’s cash collections from operations. In some cases, the seller will replace the returned
accounts with new accounts in lieu of returning the purchase price. In that case, the old account
is removed from the pool and the new account is added.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>Fee income: </b>The Company utilizes the provisions ASC Topic 605-45 “Principal Agent
Considerations” (“ASC 605-45”) to account for fee income revenue from its contingent fee,
skip-tracing and government processing and collection subsidiaries. ASC 605-45 requires an
analysis to be completed to determine if certain revenues
should be reported gross or reported net
of their related operating expense. This analysis includes an assessment of who retains
inventory/credit risk, which controls vendor selection, who establishes pricing and who
remains the primary obligor on the transaction. The Company considers each of these factors to
determine the correct method of recognizing revenue from its subsidiaries.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     For the Company’s contingent fee subsidiary, the portfolios which are placed for servicing are
owned by its clients and are placed under a contingent fee commission arrangement. The Company’s
subsidiary is paid to collect funds from the client’s debtors and earns a commission generally
expressed as a percentage of the gross collection amount. The “Fee income” line of the income
statement reflects the contingent fee amount earned, and not the gross collection amount. The
Company ceased its Anchor contingent fee operation during the second quarter of 2008.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company’s skip tracing subsidiary utilizes both gross and net reporting under ASC 605-45.
IGS generates revenue by working an account and successfully locating a customer for its client.
An “investigative fee” is received for these services. In addition, the Company incurs “agent
expenses” where it hires a third-party collector to effectuate repossession. In many cases the
Company has an arrangement with its client which allows it to bill the client for these fees. The
Company has determined these fees to be gross revenue based on the criteria in ASC 605-45 and they
are recorded as such in the line item “Fee income,” primarily because the Company is primarily
liable to the third party collector. There is a corresponding expense in “Legal and agency fees and
costs” for these pass-through items. IGS also incurs fees to release liens on the repossessed
collateral. These lien-release fees are netted in the line “Legal and agency fees and costs.”
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company’s government processing and collection business’s primary source of income is
derived from servicing taxing authorities in several different ways: processing all of their tax
payments and tax forms, collecting delinquent taxes, identifying taxes that are not being paid and
auditing tax payments. The processing and collection pieces are standard commission based billings
or fee for service transactions. When audits are conducted, there are two components. The first
is a billing for the hours incurred on conducting the audit. This billing is marked up from the
actual costs incurred. The gross billing is a component of the line item “Fee income” and the
expense is included in the line item “Compensation and employee services.” The second item is for
expenses incurred while conducting the audit. Most jurisdictions will reimburse the Company for
direct expenses incurred for the audit including such items as travel and meals. The billed
amounts are included in the line item “Fee income” and the expense component is included in its
appropriate expense category, generally, “Other operating expenses.”
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company’s claims administration and payment processing business utilizes net reporting
under ASC 605-45. CCB generates revenue by filing claims with the class action claims
administrator on behalf of its clients and receives the related settlement payment. Under SEC
Staff Accounting Bulletin 104, (“SAB 104”), the Company has determined its fee is not earned until
it has received the settlement funds. When a payment is received from the claims administrator for
settlement of a lawsuit, the Company records its fee on a net basis as revenue and includes it in
the line item “Fee income.” The balance of the received amounts is recorded as a liability and
included in the line item “Accounts payable.”
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>Property and equipment: </b>Property and equipment, including improvements that significantly add
to the productive capacity or extend useful life, are recorded at cost, while maintenance and
repairs are expensed currently. Property and equipment are depreciated over their useful lives
using the straight-line method of depreciation. Software and computer equipment are amortized or
depreciated over three to five years. Furniture and fixtures are depreciated over five years.
Equipment is depreciated over five to seven years. Leasehold improvements are depreciated over the
lesser of the useful life, which ranges from three to ten years, or the remaining term of the
leased property. Building improvements are depreciated over ten to thirty-nine years. When
property is sold or retired, the cost and related accumulated depreciation are removed from the
balance sheet and any gain or loss is included in the income statement.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>Intangible assets: </b>In connection with the Company’s business acquisitions, the Company
recorded certain tangible and intangible assets. Intangible assets recorded include client and
customer relationships, non-compete agreements, trademarks and goodwill. In accordance FASB ASC
Topic 350 “Intangibles-Goodwill and Other” (“ASC 350”), the Company amortizes intangible assets
over their estimated useful lives. In addition, Goodwill, pursuant to ASC 350, is not amortized
but rather is reviewed at least annually for impairment. See Note 8 for additional disclosure.
</div>
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<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>Income taxes: </b>The Company records a tax provision for the anticipated tax consequences of the
reported results of operations. In accordance with FASB ASC Topic 740 “Income Taxes” (“ASC 740”),
the provision for income taxes is computed using the asset and liability method, under which
deferred tax assets and liabilities are recognized for the expected future tax consequences of
temporary differences between the financial reporting and tax bases of assets and liabilities, and
for operating losses and tax credit carry-forwards. Deferred tax assets and liabilities are
measured using the currently enacted tax rates that apply to taxable income in effect for the years
in which those tax assets are expected to be realized or settled. The Company recognizes the effect
of income tax positions only if those positions are more likely than not to be sustained.
Recognized income tax positions are measured at the largest amount that is greater than 50% likely
of being realized. Changes in recognition or measurement are reflected in the period in which the
change in judgment occurs. The Company records interest and penalties related to unrecognized tax
benefits as a component of income tax expense.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Effective with the Company’s 2002 tax filings, the Company adopted the cost recovery method of
income recognition for tax purposes. The Company believes cost recovery to be an acceptable tax
revenue recognition method for companies in the bad debt purchasing industry and results in the
reduction of current taxable income as, for tax purposes, collections on finance receivables are
applied first to principal to reduce the finance receivables to zero before any income is
recognized.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company believes that it is more likely than not that forecasted income, including income
that may be generated as a result of certain tax planning strategies, together with the tax effects
of the deferred tax liabilities, will be sufficient to fully recover the deferred tax assets. In
the event that all or part of the deferred tax assets are determined not to be realizable in the
future, a valuation allowance would be established and charged to earnings in the period such
determination is made. Similarly, if the Company subsequently realizes deferred tax assets that
were previously determined to be unrealizable, the respective valuation allowance would be
reversed, resulting in a positive adjustment to earnings in the period such determination is made.
In addition, the calculation of tax liabilities involves significant judgment in estimating the
impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties
in a manner inconsistent with management’s expectations could have a material impact on the
Company’s results of operations and financial position.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>Advertising costs: </b>Advertising costs are expensed when incurred.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>Operating leases: </b>General abatements or prepaid leasing costs are recognized on a
straight-line basis over the life of the lease. In addition, future minimum lease payments
(including the impact of rent escalations) are expensed on a straight-lined basis over the life of
the lease. Material leasehold improvements are capitalized and depreciated over the remaining life
of the lease.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>Capital leases: </b>Leases are analyzed to determine if they meet the definition of a capital
lease as defined in FASB ASC Topic 840 “Leases” (“ASC 840”). Those lease arrangements that meet
one of the four criteria are considered capital leases. As such, the leased asset is capitalized
and amortized on a straight-line basis over the shorter of the lease term or the estimated useful
life of the asset. The lease is recorded as a liability with each payment amortizing the principal
balance and a portion classified as interest expense.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>Share-based compensation: </b>The Company accounts for share-based compensation in accordance
with the provisions of FASB ASC Topic 718 “Compensation-Stock Compensation” (“ASC 718”). ASC 718
requires that compensation expense associated with stock options and nonvested share awards be
recognized in the income statement. Based on historical experience, the Company assumes a
forfeiture rate for most option and nonvested share grants. Most options and nonvested share
awards generally vest between one and five years from the grant date and are expensed on a
straight-line basis over the vesting period. See Note 15 for additional disclosure.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>Use of estimates: </b>The preparation of the consolidated financial statements in conformity with
U.S. generally accepted accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the consolidated financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ from those
estimates.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Significant estimates have been made by management with respect to the timing and amount of
future cash collections of the Company’s finance receivables portfolios. Actual results could
differ from these estimates making
it reasonably possible that a change in these estimates could occur within one year. On a
quarterly basis, management reviews the estimates of future cash collections, and whether it is
reasonably possible that its assessments of collectibility may change based on actual results and
other factors.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>Estimated fair value of financial instruments</b>: The Company applies the provision of FASB ASC
Topic 820 “Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820 defines fair value as the
price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. ASC 820 also requires the
consideration of differing levels of inputs in the determination of fair values. Based upon the
fact there are no quoted prices in active markets or other observable market data, the Company used
unobservable inputs for computation of the fair value of finance receivables, net. Disclosure of
the estimated fair values of financial instruments often requires the use of estimates. See Note
14 for additional disclosure.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>Recent Accounting Pronouncements</b>: In June 2009, the FASB issued guidance on accounting for
transfers of financial assets to improve the reporting for the transfer of financial assets. The
guidance must be applied as of the beginning of each reporting entity’s first annual reporting
period that begins after November 15, 2009, for interim periods within that first annual reporting
period and for interim and annual reporting periods thereafter. Earlier application is prohibited.
The Company adopted the guidance during the first quarter of 2010, which had no material impact on
its consolidated financial statements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In June 2009, the FASB issued guidance on consolidation of variable interest entities to
improve financial reporting by enterprises involved with variable interest entities and to provide
more relevant and reliable information to users of financial statements. The guidance is effective
as of the beginning of each reporting entity’s first annual reporting period that begins after
November 15, 2009, for interim periods within that first annual reporting period, and for interim
and annual reporting periods thereafter. Earlier application is prohibited. The Company adopted
the guidance during the first quarter of 2010, which had no material impact on its consolidated
financial statements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In January 2010, the FASB issued Accounting Standards Update (“ASU”) No. 2010-06, “Fair Value
Measurements and Disclosures” (Topic 820): “Improving Disclosures about Fair Value Measurements”
(“ASU 2010-06”), which clarifies and expands disclosure requirements related to fair value
measurements. Disclosures are required for significant transfers between levels in the fair value
hierarchy. Activity in Level 3 fair value measurements is to be presented on a gross, rather than
net, basis. The update clarifies how the appropriate level of disaggregation should be determined
and emphasizes that information sufficient to permit reconciliation between fair value measurements
and line items on the financial statements should be provided. The update is effective for interim
and annual reporting periods beginning after December 15, 2009, except for the expanded disclosures
related to activity in Level 3 fair value measurements, which are effective one year later. The
Company adopted ASU 2010-06 during the first quarter of 2010, which had no material effect on its
consolidated financial statements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In April 2010, the FASB issued ASU No. 2010-18, “Receivables” (Topic 310): “Effect of a Loan
Modification When the Loan Is Part of a Pool that is Accounted for as a Single Asset” (‘ASU
2010-18”), which clarifies the accounting for acquired loans that have evidence of a deterioration
in credit quality since origination (referred to as “Subtopic 310-30 Loans”). Under ASU 2010-18,
an entity may not apply troubled debt restructuring (“TDR”) accounting guidance to individual
Subtopic 310-30 loans that are part of a pool, even if the modification of those loans would
otherwise be considered a troubled debt restructuring. Once a pool is established, individual
loans should not be removed from the pool unless the entity sells, forecloses, or writes off the
loan. Entities would continue to consider whether the pool of loans is impaired if expected cash
flows for the pool change. Subtopic 310-30 loans that are accounted for individually would
continue to be subject to TDR accounting guidance. A one-time election to terminate accounting
for loans as a pool, which may be made on a pool-by-pool basis, is provided upon adoption of ASU
2010-18. ASU 2010-18 is effective for interim or annual periods ending on or after July 15, 2010.
The Company adopted ASU 2010-18 during the third quarter of 2010, which had no material effect on
its consolidated financial statements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In July 2010, the FASB issued ASU No. 2010-20, “Receivables” (Topic 310) “Disclosures about
the Credit Quality of Financing Receivables and the Allowance for Credit Losses<i>” </i>(“ASU 2010-20”),
which requires
significant new disclosures about the allowance for credit losses and the credit
quality of financing receivables. The requirements are intended to enhance transparency regarding
credit losses and the credit quality of loan and lease receivables. Under this statement,
allowance for credit losses and fair value are to be disclosed by portfolio segment,
while credit quality information, impaired financing receivables and nonaccrual status are to
be presented by class of financing receivable. Disclosure of the nature and extent, the financial
impact and segment information of troubled debt restructurings will also be required. The
disclosures are to be presented at the level of disaggregation that management uses when assessing
and monitoring the portfolio’s risk and performance. ASU 2010-20 is effective for interim and
annual reporting periods ending on or after December 15, 2010. The Company adopted ASU 2010-20 on
December 15, 2010, and has included the required disclosures in the notes to its consolidated
financial statements (see Note 3).
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 3 - praa:FinanceReceivablesNetTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>3. Finance Receivables, net:</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Changes in finance receivables, net for the years ended December 31, 2010 and 2009, were as
follows (amounts in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at beginning of year
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">693,462</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">563,830</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Acquisitions of finance receivables, net of buybacks
</div></td>
<td> </td>
<td> </td>
<td align="right">357,530</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">282,023</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash collections
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(529,342</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(368,003</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income recognized on finance receivables, net
</div></td>
<td> </td>
<td> </td>
<td align="right">309,680</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">215,612</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Cash collections applied to principal
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(219,662</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(152,391</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at end of year
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">831,330</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">693,462</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     At the time of acquisition, the life of each pool is generally estimated to be between 72 to
96 months based on projected amounts and timing of future cash collections using the proprietary
models of the Company. As of December 31, 2010, the Company had $831.3 million in finance
receivables, net included in the consolidated balance sheet. Based upon current projections, cash
collections applied to principal are estimated to be as follows for the following years ending
December 31, (amounts in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">December 31, 2011
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">221,841</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">December 31, 2012
</div></td>
<td> </td>
<td> </td>
<td align="right">219,962</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">December 31, 2013
</div></td>
<td> </td>
<td> </td>
<td align="right">212,298</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">December 31, 2014
</div></td>
<td> </td>
<td> </td>
<td align="right">137,253</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">December 31, 2015
</div></td>
<td> </td>
<td> </td>
<td align="right">37,040</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">December 31, 2016
</div></td>
<td> </td>
<td> </td>
<td align="right">2,936</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">831,330</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the year ended December 31, 2010, the Company purchased $6.8 billion of face value of
finance receivables. During the year ended December 31, 2009, the Company purchased $8.1 billion
of face value of finance receivables. At December 31, 2010, the estimated remaining collections on
the receivables purchased during 2010 and 2009 were $674.3 million and $486.2 million,
respectively. There were no sales of finance receivables during the years ended December 31, 2010
and 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Accretable yield represents the amount of income recognized on finance receivables the Company
can expect to generate over the remaining life of its existing portfolios based on estimated future
cash flows as of the balance sheet date. Additions represent the original expected accretable
yield to be earned by the Company based on its proprietary buying models. Reclassifications from
nonaccretable difference to accretable yield primarily result from the Company’s increase in its
estimate of future cash flows. Reclassifications to nonaccretable difference from accretable yield
result from the Company’s decrease in its estimates of future cash flows and allowance charges that
exceed the Company’s increase in its estimate of future cash flows. Changes in accretable yield
for the years ended December 31, 2010 and 2009 were as follows (amounts in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at beginning of year
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">721,984</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">551,735</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income recognized on finance receivables, net
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(309,680</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(215,612</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Additions
</div></td>
<td> </td>
<td> </td>
<td align="right">403,252</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">408,935</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Reclassifications from/(to) nonaccretable difference
</div></td>
<td> </td>
<td> </td>
<td align="right">76,632</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(23,074</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at end of year
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">892,188</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">721,984</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     ASC 310-30 requires that a valuation allowance be recorded for significant decreases
in expected cash flows or change in timing of cash flows which would otherwise require a reduction
in the stated yield on a pool of accounts. In any given period, the Company may be required to
record valuation allowances due to pools of receivables underperforming expectations. Factors that
may contribute to the recording of valuation allowances may include both internal as well as
external factors. External factors which may have an impact on the collectability, and
subsequently to the overall profitability of purchased pools of defaulted consumer receivables
would include: overall market pricing for pools of consumer receivables (which is driven by both
supply and demand), new laws or regulations relating to collections, new interpretations of
existing laws or regulations, and the overall condition of the economy. Internal factors which may
have an impact on the collectability, and subsequently the overall profitability of purchased pools
of defaulted consumer receivables would include: necessary revisions to initial and
post-acquisition scoring and modeling estimates, non-optimal operational activities (which relates
to the collection and movement of accounts on both the collection floor of the Company and external
channels), as well as decreases in productivity related to turnover and tenure of the Company’s
collection staff. The following is a summary of activity within the Company’s valuation allowance
account for the years ended December 31, 2010, 2009 and 2008 (amounts in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000">2010</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Purchased</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Bankruptcy</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Core Portfolio</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Portfolio</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Total</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Valuation allowance — finanace receivables:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Beginnning balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">47,580</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,675</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">51,255</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Allowance charges
</div></td>
<td> </td>
<td> </td>
<td align="right">23,350</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,975</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26,325</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Reversal of previous recorded allowance charges
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(900</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(273</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,173</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net allowance charge
</div></td>
<td> </td>
<td> </td>
<td align="right">22,450</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,702</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25,152</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Ending balance: loans acquired with
deteriorated credit quality
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">70,030</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">6,377</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">76,407</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Finance receivables, net:
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">411,437</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">419,893</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">831,330</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Purchased</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Bankruptcy</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Core Portfolio</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Portfolio</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Total</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Valuation allowance — finanace receivables:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Beginnning balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">20,485</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,135</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">23,620</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Allowance charges
</div></td>
<td> </td>
<td> </td>
<td align="right">28,145</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">620</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">28,765</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Reversal of previous recorded allowance charges
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,050</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(80</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,130</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net allowance charge
</div></td>
<td> </td>
<td> </td>
<td align="right">27,095</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">540</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">27,635</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Ending balance: loans acquired with
deteriorated credit quality
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">47,580</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,675</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">51,255</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Finance receivables, net:
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">403,432</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">290,030</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">693,462</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000">2008</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Purchased</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Bankruptcy</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Core Portfolio</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Portfolio</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Total</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Valuation allowance — finanace receivables:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Beginnning balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">3,450</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">780</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,230</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Allowance charges
</div></td>
<td> </td>
<td> </td>
<td align="right">18,030</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,375</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">20,405</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Reversal of previous recorded allowance charges
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(995</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(20</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,015</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net allowance charge
</div></td>
<td> </td>
<td> </td>
<td align="right">17,035</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,355</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">19,390</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Ending balance: loans acquired with
deteriorated credit quality
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">20,485</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,135</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">23,620</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Finance receivables, net:
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">389,736</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">174,094</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">563,830</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
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<!-- Begin Block Tagged Note 4 - praa:AccountsReceivableTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>4. Accounts Receivable, net:</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts
collected on accounts receivable are included in net cash provided by operating activities in the
consolidated statements of cash flows. The Company maintains an allowance for doubtful accounts for
estimated losses inherent in its accounts receivable portfolio. In establishing the required
allowance, management considers historical losses adjusted to take into account current market
conditions and its customers’ financial condition, the amount of receivables in dispute, and the
current receivables aging and current payment patterns. The Company reviews its allowance for
doubtful accounts monthly. Account balances are charged off against the allowance after all means
of collection have been exhausted and the potential for recovery is considered remote. The balance
of the allowance for doubtful accounts at December 31, 2010 and 2009 was $2.5 million and $2.9
million, respectively. The Company does not have any off balance sheet credit exposure related to
its customers.
</div>
</div>
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<!-- Begin Block Tagged Note 5 - us-gaap:OperatingLeasesOfLesseeDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>5. Operating Leases:</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company leases office space and equipment under operating leases. Rental expense was
$4,299,513, $3,755,478 and $3,060,710 for the years ended December 31, 2010, 2009 and 2008,
respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Future minimum lease payments for operating leases at December 31, 2010, are as follows
(amounts in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2011
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">4,323</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2012
</div></td>
<td> </td>
<td> </td>
<td align="right">4,121</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2013
</div></td>
<td> </td>
<td> </td>
<td align="right">4,070</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2014
</div></td>
<td> </td>
<td> </td>
<td align="right">2,611</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2015
</div></td>
<td> </td>
<td> </td>
<td align="right">2,297</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Thereafter
</div></td>
<td> </td>
<td> </td>
<td align="right">1,950</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total future minimum lease payments
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">19,372</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
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<!-- Begin Block Tagged Note 6 - us-gaap:BusinessCombinationDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>6. Business Acquisitions:</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On March 15, 2010, the Company acquired 62% of the membership units of Claims Compensation
Bureau, LLC (“CCB”). The remaining 38% of the membership units were acquired by Claims
Compensation Bureau, Inc., CCB’s predecessor. Claims Compensation Bureau, Inc. was founded in 1996
and is a leading provider of class action claims settlement recovery services and related payment
processing to corporate clients. CCB’s process allows clients to maximize settlement recoveries,
in many cases participating in settlements they would otherwise not know existed. The company
charges fees for its services and works with clients to identify, prepare and submit claims to
class action administrators charged with dispersing class action settlement funds. In connection
with the acquisition, the president and founder of CCB, as well as another member of its senior
management, entered into
long-term employment agreements with the Company. The consolidated income
statement for the year ended December 31, 2010 includes the results of operations of CCB from March
15, 2010 through December 31, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company’s initial investment for the 62% ownership of CCB was paid for with $23.0 million
in cash plus $2.0 million in deferred payments which were paid during 2010. As part of the
agreement, the Company has the right through February 28, 2015 to purchase the remaining 38% of CCB
at certain multiples of EBITDA (earnings before interest, taxes, depreciation and amortization).
In addition, beginning March 1, 2012 and ending February 28, 2018, the noncontrolling interest can
require the Company to purchase its units at pre-defined multiples of EBITDA, as defined (see Note
7). Any future acquisitions by the Company of the noncontrolling interest will be accounted for as
an equity transaction.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company accounted for this purchase in accordance with ASC Topic 805, “Business
Combinations.” Under this guidance, an entity is required to recognize the assets acquired,
liabilities assumed, any noncontrolling interest in the acquiree, and the consideration given at
their fair value on the acquisition date. The following tables summarize the fair value of the
consideration given for CCB, as well as the fair value of the assets acquired, liabilities assumed,
and the noncontrolling interest in the acquiree as of the March 15, 2010 acquisition date (amounts
in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Purchase price consideration given:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">23,000</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Contingent consideration arrangement
</div></td>
<td> </td>
<td> </td>
<td align="right">2,000</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Fair value of total consideration given
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">25,000</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Recognized amounts of identifiable assets are as follows (amounts in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Contractual relationships
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">12,000</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Tradenames
</div></td>
<td> </td>
<td> </td>
<td align="right">400</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Non-compete agreements
</div></td>
<td> </td>
<td> </td>
<td align="right">500</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash
</div></td>
<td> </td>
<td> </td>
<td align="right">500</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Software
</div></td>
<td> </td>
<td> </td>
<td align="right">67</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other assets
</div></td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total identifiable net assets acquired
</div></td>
<td> </td>
<td> </td>
<td align="right">13,469</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill
</div></td>
<td> </td>
<td> </td>
<td align="right">26,854</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Estimated fair value of acquired business
</div></td>
<td> </td>
<td> </td>
<td align="right">40,323</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Redeemable noncontrolling interest in CCB
</div></td>
<td> </td>
<td> </td>
<td align="right">15,323</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Purchase price consideration given
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">25,000</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The estimated fair value of the noncontrolling interest in CCB was determined as the
percentage of the noncontrolling interest multiplied by the fair value of all assets which were
derived from the acquisition of CCB on March 15, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On June 11, 2010, the Company’s wholly-owned subsidiary, RDS, acquired substantially all the
assets of Tax Return, Inc. for $500,000. The purchase price was allocated to a non-competition
agreement, fixed assets and goodwill, all of which are included as assets of RDS. There is no
contingent consideration associated with this acquisition.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The acquisition of CCB levers the Company’s competency in payment and administrative
processing, while broadening its scope of services. The acquisition of Tax Return, Inc. further
expands the audit expertise and capacity of the Company’s government services business.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 7 - praa:RedeemableNoncontrollingInterestTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>7. Redeemable Noncontrolling Interest:</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In accordance with ASC 810, the Company has consolidated all financial statement accounts of
CCB in its consolidated balance sheet at December 31, 2010 and its consolidated income statement
for the year ended December 31, 2010. The redeemable noncontrolling interest amount is separately
stated on the consolidated balance sheet and represents the 38% interest in CCB not owned by the
Company. In addition, net income attributable to the noncontrolling interest is stated separately
in the consolidated income statement.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company has the right through February 28, 2015 to purchase the remaining 38% of CCB at
certain multiples of EBITDA. In addition, beginning March 1, 2012 and ending February 28, 2018,
the noncontrolling interest can require the Company to purchase its units at pre-defined multiples
of EBITDA.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company applies the provisions of FASB ASC Topic 480-10-S99 ‘Distinguishing Liabilities
from Equity” (“ASC 480-10-S99”) which provides guidance on the accounting for equity securities
that are subject to mandatory redemption requirements or whose redemption is outside the control of
the issuer. The noncontrolling interest “put” arrangement is accounted for under ASC 480-10-S99,
as redemption under the “put” arrangement is outside the control of the Company. As such, the
redeemable noncontrolling interest is recorded outside of “permanent” equity. Although the
noncontrolling interest was redeemable by the Company as of the reporting date, it was not yet
redeemable by the holder of the “put” option. The Company measures the redeemable noncontrolling
interest at the greater of its ASC 480-10-S99 measurement amount (estimated redemption value of the
“put” option embedded in the noncontrolling interest) or its measurement amount under the guidance
of ASC 810. The ASC 810 measurement amount includes adjustments for the noncontrolling interest’s
pro-rata share of earnings, losses and distributions, pursuant to the limited liability company
agreement. Adjustments to the measurement amount are recorded to stockholders’ equity. The
Company used a present value calculation to estimate the redemption value of the “put” option as of
the reporting date. If material, the Company adjusts the numerator of earnings per share
calculations for the current period change in the excess of the noncontrolling interest’s ASC
480-10-S99 measurement amount over the greater of its ASC 810 measurement amount or the estimated
fair value of the noncontrolling interest. The estimated redemption value of the noncontrolling interest, as if it were currently redeemable
by the holder of the put option under the terms of the put arrangement, was $22.8 million at
December 31, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table represents the changes in the redeemable noncontrolling interest for the
period from March 15, 2010 to December 31, 2010 (amounts in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Acquisition date fair value of redeemable noncontrolling interest
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">15,323</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income attributable to redeemable noncontrolling interest
</div></td>
<td> </td>
<td> </td>
<td align="right">417</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Distributions payable
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,291</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Redeemable noncontrolling interest at December 31, 2010
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">14,449</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 8 - us-gaap:GoodwillAndIntangibleAssetsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>8. Goodwill and Intangible Assets, net:</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Intangible assets consist of the following at December 31, 2010 and 2009 (amounts in
thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Client and customer relationships
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">29,823</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">17,823</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Non-compete agreements
</div></td>
<td> </td>
<td> </td>
<td align="right">3,053</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,527</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Trademarks
</div></td>
<td> </td>
<td> </td>
<td align="right">2,500</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,100</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Accumulated amortization
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(16,910</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11,694</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Intangible assets, net
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">18,466</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">10,756</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In accordance with ASC 350, the Company is amortizing the following intangible assets over the
estimated useful lives as indicated:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="42%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Client and</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Acquisition Date</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Customer Relationships</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Non-Compete Agreements</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Trademarks</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">IGS
</div></td>
<td> </td>
<td colspan="3" align="center" nowrap="nowrap">October 1, 2004</td>
<td> </td>
<td colspan="3" align="center">7 years</td>
<td> </td>
<td colspan="3" align="center">3 years <sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td>
<td> </td>
<td align="center">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">RDS <sup style="font-size: 85%; vertical-align: text-top">(2)</sup>
</div></td>
<td> </td>
<td colspan="3" align="center">July 29, 2005</td>
<td> </td>
<td colspan="3" align="center">10 years</td>
<td> </td>
<td colspan="3" align="center">3 years <sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td>
<td> </td>
<td align="center">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">The Palmer Group <sup style="font-size: 85%; vertical-align: text-top">(2)</sup>
</div></td>
<td> </td>
<td colspan="3" align="center">July 25, 2007</td>
<td> </td>
<td colspan="3" align="center">2.4 years <sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td>
<td align="center" colspan="3">—</td>
<td> </td>
<td> </td>
<td align="center">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">MuniServices <sup style="font-size: 85%; vertical-align: text-top">(2)</sup>
</div></td>
<td> </td>
<td colspan="3" align="center">July 1, 2008</td>
<td> </td>
<td colspan="3" align="center">11 years</td>
<td> </td>
<td colspan="3" align="center">3 years</td>
<td> </td>
<td colspan="3" align="center">14 years</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">BPA <sup style="font-size: 85%; vertical-align: text-top">(2)</sup>
</div></td>
<td> </td>
<td colspan="3" align="center">August 1, 2008</td>
<td> </td>
<td colspan="3" align="center">10 years</td>
<td> </td>
<td colspan="3" align="center">2.4 years</td>
<td> </td>
<td> </td>
<td align="center">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">CCB
</div></td>
<td> </td>
<td colspan="3" align="center">March 15, 2010</td>
<td> </td>
<td colspan="3" align="center">4-7 years</td>
<td> </td>
<td colspan="3" align="center">3 years</td>
<td> </td>
<td colspan="3" align="center">14 years</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Tax Return, Inc. <sup style="font-size: 85%; vertical-align: text-top">(2)</sup>
</div></td>
<td> </td>
<td colspan="3" align="center">June 11, 2010</td>
<td> </td>
<td align="center" colspan="3">—</td>
<td> </td>
<td colspan="3" align="center">3.5 years</td>
<td> </td>
<td> </td>
<td align="center">—</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>These intangible assets are fully amortized with no expense recognized during 2010.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(2)</td>
<td> </td>
<td>Operates as part of the Company’s government services group.</td>
</tr>
</table>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The combined original weighted average amortization period is 8.1 years. The Company reviews
these relationships at least annually for impairment. Total amortization expense for the years
ended December 31, 2010, 2009 and 2008 was $5,215,679, $2,673,108 and $2,140,942, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Amortization expense relating to the non-compete agreements is calculated on a straight-line
method (which approximates the pattern of economic benefit concept) for the IGS, MuniServices, BPA
and CCB non-compete agreements and a pattern of economic benefit concept for the RDS non-compete
agreements. Amortization expense relating to the client and customer relationships is calculated
using a pattern of economic benefit concept for the IGS, RDS, MuniServices and CCB acquisitions,
straight-line over the length of the contract for The Palmer Group acquisition and straight-line
over their estimated useful lives of ten years for the BPA acquisition. Amortization expense
relating to the trademarks is calculated using a pattern of economic benefit concept for the
MuniServices and CCB acquisitions. The pattern of economic benefit concept relies on expected net
cash flows from all existing clients. The rate of amortization of the client relationships will
fluctuate annually to match these original expected cash flows.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The future amortization of these intangible assets is estimated to be as follows as of
December 31, 2010 (amounts in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2011
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">4,813</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2012
</div></td>
<td> </td>
<td> </td>
<td align="right">3,690</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2013
</div></td>
<td> </td>
<td> </td>
<td align="right">3,021</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2014
</div></td>
<td> </td>
<td> </td>
<td align="right">2,267</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2015
</div></td>
<td> </td>
<td> </td>
<td align="right">1,797</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Thereafter
</div></td>
<td> </td>
<td> </td>
<td align="right">2,878</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">18,466</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In addition, Goodwill, pursuant to ASC 350, is not amortized but rather is reviewed at least
annually for impairment. During the fourth quarter of 2010, the Company underwent its annual
review of goodwill. Based upon the results of this review, which was conducted as of October 1,
2010, no impairment charges to goodwill or the other intangible assets were necessary as of the
date of this review. The Company believes that nothing has occurred since the review was performed
through December 31, 2010, that would indicate a triggering event and thereby necessitate an
impairment charge to goodwill or the other intangible assets. At December 31, 2010 and 2009, the
carrying value of goodwill was $61.7 million and $29.3 million, respectively. The $32.4 million
increase in the carrying value of goodwill during the year ended December 31, 2010 mainly relates
to the purchase of CCB on March 15, 2010 (see Note 6) and additional contingent purchase price of
$5.0 million paid in stock relating to the achievement of the earn-out provisions of the
MuniServices acquisition. The $1.8 million increase in the carrying
value of goodwill during the year ended December 31, 2009 relates to additional purchase price consideration paid for the acquisitions of MuniServices and BPA.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 9 - us-gaap:PensionAndOtherPostretirementBenefitsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>9. 4</b><b>01(k)</b><b> Retirement Plan:</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company sponsors a defined contribution plan. Under the plan, all employees over
twenty-one years of age are eligible to make voluntary contributions to the plan up to 100% of
their compensation, subject to Internal Revenue Service limitations, after completing six months of
service, as defined in the plan. The Company makes matching contributions of up to 4% of an
employee’s salary. Total compensation expense related to these contributions was $1,302,510,
$1,141,785 and $959,902 for the years ended December 31, 2010, 2009 and 2008, respectively.
</div>
</div>
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<!-- Begin Block Tagged Note 10 - us-gaap:ScheduleOfLineOfCreditFacilitiesTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>10. Line of Credit</b>:
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On December 20, 2010, the Company entered into a credit agreement with Bank of America,
N.A., as administrative agent, and a syndicate of lenders named therein (the “Credit Agreement”).
Under the terms of the Credit Agreement, the credit facility includes an aggregate principal amount
available of $407.5 million which consists of a $50 million fixed rate loan that matures on May 4,
2012, which was transferred from the Company’s existing credit agreement, and a $357.5 million
revolving credit facility that matures on December 20, 2014. The revolving credit facility will be
automatically increased by $50 million upon the maturity and repayment of the fixed rate loan. The
fixed rate loan bears interest at a rate of 6.8% per annum, payable monthly in arrears. The
revolving loans accrue interest, at the option of the Company, at either the base rate plus 1.75%
per annum or the Eurodollar rate (as defined) for the applicable term plus 2.75% per annum. The
base rate is the highest of (a) the Federal Funds Rate plus 0.50%, (b) Bank of America’s prime
rate, and (c) the Eurodollar rate plus 1.00%. Interest is payable on base rate loans quarterly in
arrears and on Eurodollar loans in arrears on the last day of each interest period or if such
interest period exceeds three months, every three months. The Company’s revolving credit facility
includes a $20 million swingline loan sublimit and a $20 million letter of credit sublimit. It
also contains an accordion loan feature that allows the Company to request an increase of up to $142.5
million in the amount available for borrowing under the revolving credit facility, whether from existing or new lenders, subject to terms of the Credit Agreement. No existing lender
is obligated to increase its commitment. The Credit Agreement is secured by a first priority lien
on substantially all of the Company’s assets. The Credit Agreement contains restrictive covenants
and events of default include the following:
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" style="background: transparent"> </td>
<td width="2%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>borrowings may not exceed 30% of the ERC of all its eligible asset pools plus 75% of its
eligible accounts receivable;</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" style="background: transparent"> </td>
<td width="2%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>the consolidated leverage ratio (as defined) cannot exceed 2.0 to 1.0 as of the end of
any fiscal quarter;</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" style="background: transparent"> </td>
<td width="2%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>consolidated Tangible Net Worth (as defined) must equal or exceed $309,452,000 plus 50%
of positive consolidated net income for each fiscal quarter beginning December 31, 2010,
plus 50% of the net proceeds of any equity offering;</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" style="background: transparent"> </td>
<td width="2%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>capital expenditures during any fiscal year cannot exceed $20 million;</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" style="background: transparent"> </td>
<td width="2%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>cash dividends and distributions during any fiscal year cannot exceed $20 million;</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" style="background: transparent"> </td>
<td width="2%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>stock repurchases during the term of the agreement cannot exceed $100 million;</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" style="background: transparent"> </td>
<td width="2%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>permitted acquisitions (as defined) during any fiscal year cannot exceed $100 million;</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" style="background: transparent"> </td>
<td width="2%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>the Company must maintain positive consolidated income from operations (as defined)
during any fiscal quarter; and</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" style="background: transparent"> </td>
<td width="2%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>restrictions on changes in control.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The revolving credit facility also bears an unused commitment fee of 0.375% per annum, payable
quarterly in arrears.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     All of the Company’s borrowings at December 31, 2010 under its revolving credit facility
consisted of 30-day Eurodollar rate loans, with an annual interest rate as of December 31, 2010
equal to 3.01%.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company’s previous credit facility included an aggregate principal amount available of
$365.0 million as of December 31, 2009, which consisted of a $50 million fixed rate loan and a $315
million revolving credit facility. Borrowings under the revolving credit facility bore interest at
a floating rate equal to the one month LIBOR Market Index Rate plus 1.40%, which equated to 1.63%
at December 31, 2009. The Company also paid an unused line fee for its previous credit facility
equal to 0.30% on any unused portion of the facility. The credit facility was collateralized by
substantially all of the Company’s assets and contained certain restrictive covenants.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company had $300.0 million and $319.3 million of borrowings outstanding on its credit
facilities as of December 31, 2010 and 2009, respectively, of which $50 million was part of the
non-revolving fixed rate loan at both dates.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company was in compliance with all covenants of its credit facilities as of December 31,
2010 and 2009.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 11 - us-gaap:DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>11. Derivative Instruments</b>:
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company may periodically enter into derivative financial instruments, typically
interest rate swap agreements, to reduce its exposure to fluctuations in interest rates on
variable-rate debt and their impact on earnings and cash flows. The Company does not utilize
derivative financial instruments with a level of complexity or with a risk greater than the
exposure to be managed nor does it enter into or hold derivatives for trading or speculative
purposes. The Company periodically reviews the creditworthiness of the swap counterparty to assess
the counterparty’s ability to honor its obligation. Counterparty default would expose the Company
to fluctuations in variable interest rates. Based on the guidance of ASC 815, the Company records
derivative financial instruments at fair value in the consolidated balance sheets.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On December 16, 2008, the Company entered into an interest rate forward rate swap transaction
(the “Swap”) with J.P. Morgan Chase Bank, National Association (“JP Morgan”) pursuant to an ISDA
Master Agreement which contains customary representations, warranties and covenants. The Swap had
an effective date of January 1, 2010, with a notional amount of $50.0 million. Under the Swap, the
Company received a floating interest rate based on one-month LIBOR Market Index Rate and paid a
fixed interest rate of 1.89%. The Swap was scheduled to mature on May 1, 2011. On November 10,
2010, the Company terminated its interest rate swap agreement. As a result of the termination, the
Company and JP Morgan released each other from all obligations under the Swap, including, without
limitation, the obligation to make periodic payments thereunder, and the Swap was canceled and
terminated. The Company paid a $416,000 termination payment to JP Morgan on November 15, 2010,
representing the approximate present value of the expected remaining monthly settlement payments
that otherwise were to have been due to JP Morgan thereafter.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company’s financial derivative instrument was designated and qualified as a cash flow
hedge, and the effective portion of the gain or loss on such hedge was reported as a component of
other comprehensive income/(loss) in the consolidated financial statements of the Company. To the
extent that the hedging relationship was not effective, the ineffective portion of the change in
fair value of the derivative would have been recorded in other income (expense). The hedge was
considered effective for the period from December 16, 2008 through the termination of the Swap on
November 10, 2010. Therefore, no amount has been recorded in the consolidated income statements
related to the hedge’s ineffectiveness during 2008, 2009 or 2010. Hedges that receive designated
hedge accounting treatment are evaluated for effectiveness at the time that they are designated, as
well as throughout the hedging period.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table sets forth the fair value amounts of derivative instruments held by the
Company as of the dates indicated (amounts in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>December 31, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>December 31, 2009</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivative designated as a hedging instrument under ASC 815:
</div></td>
<td> </td>
<td colspan="2" align="center" nowrap="nowrap">Asset Derivative</td>
<td> </td>
<td> </td>
<td colspan="2" align="center" nowrap="nowrap">Liability Derivative</td>
<td> </td>
<td> </td>
<td colspan="2" align="center" nowrap="nowrap">Asset Derivative</td>
<td> </td>
<td> </td>
<td colspan="2" align="center" nowrap="nowrap">Liability Derivative</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swap contract
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right" >701</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total derivative
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">701</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">
Liability derivatives are recorded in the liability section of the accompanying consolidated balance sheets.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table sets forth the (loss) recorded in Accumulated Other Comprehensive
Loss (“AOCL”), net of tax, for the years ended December 31, 2010 and 2009, for derivatives held by
the Company as well as any (loss) reclassified from AOCL into expense (amounts in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amount of Loss</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Recognized in Other</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Location of Loss</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amount of Loss</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Comprehensive Loss</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Reclassified from</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Reclassified from</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 0px solid #000000">on Derivative</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 0px solid #000000">AOCL into Expense</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 0px solid #000000">AOCL into Expense</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000">Derivative
designated as hedging instruments under ASC 815:</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">(Effective Portion)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">(Effective Portion)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">(Effective Portion)</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swap contract
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(242</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">interest expense</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1,097</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td > </td>
<td> </td>
<td> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total derivative
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(242</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1,097</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amount of Loss</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Recognized in Other</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Location of Loss</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amount of Loss</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Comprehensive Loss</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Reclassified from</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Reclassified from</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 0px solid #000000">on Derivative</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 0px solid #000000">AOCL into Expense</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 0px solid #000000">AOCL into Expense</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000">Derivative
designated as hedging instruments under ASC 815:</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">(Effective Portion)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">(Effective Portion)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">(Effective Portion)</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swap contract
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(517</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">interest expense</td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total derivative
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(517</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Amounts in accumulated other comprehensive loss are reclassified into earnings under certain
situations, for example, if the occurrence of the transaction is no longer probable or no longer
qualifies for hedge accounting. Due to the termination of the Swap on November 10, 2010, the
Company paid a $416,000 termination payment which represented the then current amount included in
accumulated other comprehensive loss, net of taxes, which was reclassed into interest expense in
the consolidated income statement for the year ended December 31, 2010. The Company has no further
obligation under the Swap.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 12 - us-gaap:PropertyPlantAndEquipmentDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>12. Property and equipment, net:</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Property and equipment, at cost, consist of the following as of December 31, 2010 and 2009
(amounts in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Software
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">21,014</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">16,542</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Computer equipment
</div></td>
<td> </td>
<td> </td>
<td align="right">10,697</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,869</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Furniture and fixtures
</div></td>
<td> </td>
<td> </td>
<td align="right">6,147</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,624</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Equipment
</div></td>
<td> </td>
<td> </td>
<td align="right">7,498</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,040</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Leasehold improvements
</div></td>
<td> </td>
<td> </td>
<td align="right">4,574</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,277</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Building and improvements
</div></td>
<td> </td>
<td> </td>
<td align="right">6,045</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,045</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Land
</div></td>
<td> </td>
<td> </td>
<td align="right">992</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">992</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Accumulated depreciation and amortization
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(32,697</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(25,525</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Property and equipment, net
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">24,270</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">21,864</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Depreciation and amortization expense, relating to property and equipment, for the years ended
December 31, 2010, 2009 and 2008 was $7,221,355, $6,539,823 and $5,283,058, respectively.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Beginning in July 2006 upon initiation of certain internally developed software projects, in
accordance with the guidance of FASB ASC Topic 350-40 “Internal-Use Software” (“ASC 350-40”), the
Company began capitalizing qualifying computer software costs incurred during the application
development stage and amortizing them over their estimated useful life of three to seven years on a
straight-line basis beginning when the project is completed. Costs associated with preliminary
project stage activities, training, maintenance and all other post implementation stage activities
are expensed as incurred. The Company’s policy provides for the capitalization of certain direct
payroll costs for employees who are directly associated with internal use computer software
projects, as well as external direct costs of services associated with developing or obtaining
internal use software. Capitalizable personnel costs are limited to the time directly spent on
such projects. As of December 31, 2010 and 2009, the Company has incurred and capitalized
$4,188,160 and $2,774,444, respectively, of these direct payroll costs related to software
developed for internal use. As of December 31, 2010 and 2009, $1,314,667 and $1,514,489,
respectively, of these costs are for projects that are in the development stage and therefore are a
component of “Other assets”. Once the projects are completed the costs will be transferred to
Software and amortized over their estimated useful life of three to seven years. Amortization
expense and remaining unamortized costs relating to this internally developed software as of and
for the year ended December 31, 2010 were $435,201 and $2,199,673, respectively. Amortization
expense and remaining unamortized costs relating to this internally developed software as of and
for the year ended December 31, 2009 were $128,622 and $1,021,336, respectively.
</div>
</div>
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<!-- Begin Block Tagged Note 13 - us-gaap:LongTermDebtTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>13. Long-Term Debt:</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On February 6, 2009, the Company entered into a commercial loan agreement to finance computer
software and equipment purchases in the amount of $2,036,114. The loan is collateralized by the
related computer software and equipment. The loan is a three year loan with a fixed rate of 4.78%
with monthly installments, including interest, of $60,823 beginning on March 31, 2009, and it
matures on February 28, 2012.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On December 15, 2010, the Company entered into a commercial loan agreement to finance computer
software and equipment purchases in the amount of $1,569,016. The loan is collateralized by the
related computer software and equipment. The loan is a three year loan with a fixed rate of 3.69%
with monthly installments, including interest, of $46,108 beginning on January 15, 2011, and it
matures on December 15, 2013.
</div>
</div>
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<!-- Begin Block Tagged Note 14 - us-gaap:FairValueDisclosuresTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>14. Fair Value Measurements and Disclosures:</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>(a) Disclosures about Fair Value of Financial Instruments:</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In accordance with the disclosure requirements of FASB ASC Topic 825, “Financial
Instruments” (“ASC 825”), the table below summarizes fair value estimates for the Company’s
financial instruments. The total of the fair value calculations presented does not represent, and
should not be construed to represent, the underlying value of the Company. The carrying amounts in
the table are recorded in the consolidated balance sheets under the indicated captions as of
December 31, 2010 and 2009 (amounts in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="37%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="10%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="10%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="10%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Carrying Amount</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Estimated Fair Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Carrying Amount</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Estimated Fair Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Financial assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Cash and cash equivalents
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">41,094</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">41,094</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">20,265</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">20,265</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Finance receivables, net
</div></td>
<td> </td>
<td> </td>
<td align="right">831,330</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,126,340</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">693,462</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">839,417</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Financial liabilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Line of credit
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">300,000</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">300,000</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">319,300</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">319,300</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Long-tern debt
</div></td>
<td> </td>
<td> </td>
<td align="right">2,396</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,396</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,499</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,499</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Derivative instrument
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">701</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">701</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Disclosure of the estimated fair values of financial instruments often requires the use of
estimates. The Company uses the following methods and assumptions to estimate the fair value of
financial instruments:
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>Cash and cash equivalents: </b>The carrying amount approximates fair value.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>Finance receivables, net: </b>The Company records purchased receivables at cost, which represents
a significant discount from the contractual receivable balances due. The Company computed the
estimated fair value of these receivables using proprietary pricing models that the Company
utilizes to make portfolio purchase decisions.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>Line of credit: </b>The carrying amount approximates fair value, as the interest rates
approximate the rate currently offered to the Company for similar debt instruments of comparable
maturities by the Company’s bankers.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>Long-term debt: </b>The carrying amount approximates fair value, as the interest rates
approximate the rate currently offered to the Company for similar debt instruments of comparable
maturities by the Company’s bankers.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>Derivative instrument: </b>The interest rate swap was recorded at estimated fair value, which was
determined using pricing models developed based on the LIBOR swap rate and other observable market
data, adjusted for non-performance risk of both the counterparty and the Company.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>(b) Fair Value Hierarchy:</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company recorded its derivative instrument at estimated fair value on a recurring basis.
The accompanying consolidated financial statements include estimated fair value information
regarding its derivative instrument as of December 31, 2009, as required by FASB ASC Topic 820,
“Fair Value Measurements and Disclosures” (“ASC 820”). There were no derivative instruments at
December 31, 2010. ASC 820 defines fair value as the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. ASC 820 also requires the consideration of differing levels of inputs in the
determination of fair values. Those levels of input are summarized as follows:
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>•</b> Level 1 — Quoted prices in active markets for identical assets and liabilities.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>•</b> Level 2 — Observable inputs other than Level 1 quote prices, such as quoted prices
for similar instruments in active markets, quoted prices for identical or similar instruments in
markets that are not active, and model-based valuation techniques for which all significant
assumptions are observable in the market.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>•</b> Level 3 — Unobservable inputs that are supported by little or no market activity.
Level 3 assets and liabilities include financial instruments whose value is determined using
pricing models, discounted cash flow methodologies, or similar techniques as well as instruments
for which the determination of fair value requires significant management judgment or estimation.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The level in the fair value hierarchy within which a fair value measurement in its entirety
falls is based on the lowest level input that is significant to the fair value measurement in its
entirety.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The placement in the fair value hierarchy of the Company’s interest rate swap derivative
instrument as of December 31, 2010 and December 31, 2009 is Level 2 based on the Level 2 inputs
described in section (a) above. Refer to Note 11 for further information regarding the terminated
derivative instrument.
</div>
</div>
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<!-- Begin Block Tagged Note 15 - us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>15. Share-Based Compensation:</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company has a stock option and nonvested share plan. The Company created the 2002 Stock
Option Plan (the “Plan”) on November 7, 2002. The Plan was amended in 2004 (the “Amended Plan”) to
enable the Company to issue nonvested shares of stock to its employees and directors. The Amended
Plan was approved by the Company’s shareholders at its Annual Meeting on May 12, 2004. On March
19, 2010, the Company adopted a 2010 Stock Plan, which was approved by its shareholders at the 2010
Annual Meeting. The 2010 Stock Plan is a further amendment to the Amended Plan, and contains,
among other things, specific performance metrics with respect to performance-
based stock awards. Up to 2,000,000 shares of common stock may be issued under the 2010 Stock
Plan. The 2010 Stock Plan expires November 7, 2012.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company accounts for share-based compensation in accordance with the provisions of ASC
718. As of December 31, 2010, total future compensation costs related to nonvested awards of
nonvested shares (not including nonvested shares granted under the Long-Term Incentive Program) is
estimated to be $3.0 million with a weighted
average remaining life of 2.4 years (not including
nonvested shares granted under the Long-Term Incentive Programs). As of December 31, 2010, there
is no future compensation cost related to stock options and the remaining vested stock options have
a weighted average remaining life of 0.1 years. Based upon historical data, the Company used an
annual forfeiture rate of 14% for stock options and 15-40% for nonvested shares for most of the
employee grants. Grants made to key employee hires and directors of the Company were assumed to
have no forfeiture rates associated with them due to the historically low turnover among this
group.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Total share-based compensation expense was $4,203,154, $3,819,915 and $140,590 for the years
ended December 31, 2010, 2009 and 2008, respectively. The Company, in conjunction with the renewal
of employment agreements with its Named Executive Officers and other senior executives, awarded
nonvested shares which vested on January 1, 2009. As a result of the vesting of these shares, the
Company recorded stock-based compensation expense in connection with these shares, in the amount of
approximately $1.4 million during the first quarter of 2009. Tax benefits resulting from
tax deductions in excess of share-based compensation expense recognized under the fair value
recognition provisions of ASC 718 (windfall tax benefits) are credited to additional
paid-in capital in the Company’s Consolidated Balance Sheets. Realized tax shortfalls are first
offset against the cumulative balance of windfall tax benefits, if any, and then charged directly
to income tax expense. The total tax benefit realized from share-based compensation expense was
approximately $0.9 million, $2.2 million and $0.9 million for the years ended December 31, 2010,
2009 and 2008, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><b><i>Stock Options</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     All options issued under the Amended Plan vest ratably over five years. Granted options
expire seven years from grant date. The remaining outstanding stock options expire on January 16,
2011. Options granted to a single person cannot exceed 200,000 in a single year. As of December
31, 2010, 895,000 options have been granted under the Amended Plan, of which 118,955 have been
cancelled and are eligible for regrant. All expenses for 2010, 2009 and 2008 are included in
earnings as a component of compensation and employee services expense.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following summarizes all option related transactions from December 31, 2007 through
December 31, 2010 (amounts in thousands, except per share amounts):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Weighted-Average</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Weighted-Average</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Options</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Exercise Price Per</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Fair Value Per</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Outstanding</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Share</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Share</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">December 31, 2007
</div></td>
<td> </td>
<td> </td>
<td align="right">163</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">16.97</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3.25</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Exercised
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(38</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">15.87</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.31</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cancelled
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">21.50</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.60</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">December 31, 2008
</div></td>
<td> </td>
<td> </td>
<td align="right">123</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17.24</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.21</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Exercised
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(116</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">16.51</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.24</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">December 31, 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29.41</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.70</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Exercised
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">28.45</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.92</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">December 31, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">29.79</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.62</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     All of the stock options were issued to employees of the Company except for 40,000 that
were issued to non-employee directors. Non-employee directors were granted 20,000 stock
options in 2004. No stock options were granted in 2010, 2009 or 2008. The total intrinsic
value of options exercised during the years ended December 31, 2010, 2009 and 2008, was
approximately $0.1 million, $2.7 million, and $0.9 million, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following information is as of December 31, 2010 (amounts in thousands except per share
amounts):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="23%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14" style="border-bottom: 1px solid #000000">Options Outstanding</td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000">Options Exercisable</td>
<td style="border-bottom: 1px solid #000000"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Weighted-Average</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Weighted-</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left">Exercise</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Number</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Average Remaining</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Exercise Price Per</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Aggregate</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Number</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Average Exercise</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Aggregate</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left">Price</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Outstanding</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Contractual Life</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Share</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Intrinsic Value</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Exercisable</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Price Per Share</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Intrinsic Value</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="27" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">$29.79
</div></td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.1</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">29.79</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">227</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">29.79</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">227</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="27" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total as of December 31, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.1</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">29.79</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">227</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">29.79</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">227</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="27" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company utilizes the Black-Scholes option-pricing model to calculate the value
of the stock options when granted. This model was developed to estimate the fair value of traded
options, which have different characteristics than employee stock options. In addition, changes to
the subjective input assumptions can result in materially different fair market value estimates.
Therefore, the Black-Scholes model may not necessarily provide a reliable single measure of the
fair value of employee stock options.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><b><i>Nonvested Shares</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     With the exception of the awards made pursuant to the Long-Term Incentive Program and a few
employee and director grants, the terms of the nonvested share awards are similar to those of the
stock option awards, wherein the nonvested shares vest ratably over three to five years and are
expensed over their vesting period. In addition, in conjunction with the renewal of their
employment agreements, the Company’s Named Executive Officers and other senior executives were
awarded nonvested shares which vested on January 1, 2009. As a result of the vesting of these
shares, the Company recorded share-based compensation expense in connection with these shares, in
the amount of approximately $1.4 million during the first quarter of 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following summarizes all nonvested share transactions, excluding those related to the
Long-Term Incentive Program, from December 31, 2007 through December 31, 2010 (amounts in thousands
except per share amounts):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Nonvested Shares</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Weighted-Average Price</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Outstanding</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">at Grant Date</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">December 31, 2007
</div></td>
<td> </td>
<td> </td>
<td align="right">123</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">41.72</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">27</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">37.47</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Vested
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(37</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">39.55</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cancelled
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(15</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">40.05</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">December 31, 2008
</div></td>
<td> </td>
<td> </td>
<td align="right">98</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">41.60</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">70</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34.22</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Vested
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(82</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">36.62</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cancelled
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">42.20</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">December 31, 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">81</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">40.24</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">57</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">53.06</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Vested
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(37</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">41.46</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cancelled
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">39.61</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">December 31, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">91</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">47.89</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The total grant date fair value of shares vested during the years ended December 31, 2010,
2009 and 2008, was $1,514,036, $3,014,339 and $1,446,897, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Long-Term Incentive Programs</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Pursuant to the Amended Plan, on March 30, 2007, January 4, 2008, January 20, 2009 and January
14, 2010, the Compensation Committee approved the grant of 96,550, 80,000, 108,720 and 53,656
performance-based nonvested shares, respectively. All shares granted under the LTI Programs were
granted to key employees of the Company. For both the 2007 and 2008 grants, no estimated
compensation costs have been accrued or recognized because the achievements of the performance
targets of the programs were not met. The 2009 grant is performance and market based and cliff
vests after the requisite service period of two to three years if certain financial and market
related goals are met. The goals are based upon diluted earnings per share (“EPS”) totals for
2009, the return on owners’ equity for the three year period beginning on January 1, 2009 and
ending December 31, 2011, and the relative total shareholder return as compared to a peer group for
the same three year period. The number of shares vested can double if the financial goals are
exceeded and no shares will vest if the financial goals are not met. The Company is expensing the
nonvested share grant over the requisite service period of two to three years beginning on January
1, 2009. If the Company believes that the number of shares granted will be more or less than
originally projected, an adjustment to the expense will be made at that time based on the probable
outcome. The EPS component of the
2009 plan was not achieved and therefore no compensation
expense was recognized during 2009 or 2010 related to the 2009 grants. The 2010 grant is
performance and market based and cliff vests after the requisite service period of two to three
years if certain financial and market related goals are met. The goals are based upon diluted EPS
totals for 2010, the return on owners’ equity for the three year period beginning on January 1,
2010 and ending December 31, 2012, and the relative total shareholder return as compared to a peer
group for the same three year period. The number of shares that will be ultimately vest are based
on a sliding scale and can double if the financial goals are exceeded or no shares will vest if the
financial goals are not met. The Company is expensing the nonvested share grant over the requisite
service period of two to three years beginning on January 1, 2010. If the Company believes that
the number of shares granted will be more or less than originally projected, an adjustment to the
expense will be made at that time based on the probable outcome. At December 31, 2010, total
future compensation costs related to nonvested share awards granted under the 2009 and 2010 LTI
Programs are estimated to be approximately $3.3 million. The Company assumed a 7.5% forfeiture
rate for these grants and the remaining shares have a weighted average life of 1.42 years at
December 31, 2010.
</div>
</div>
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<!-- Begin Block Tagged Note 16 - us-gaap:EarningsPerShareTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>16. Earnings per Share:</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Basic EPS are computed by dividing income available to common shareholders by weighted average
common shares outstanding. Diluted EPS are computed using the same components as basic EPS with
the denominator adjusted for the dilutive effect of stock options and nonvested share awards.
Share-based awards that are contingent upon the attainment of performance goals are not included in
the computation of diluted EPS until the performance goals have been attained. The dilutive effect
of stock options and nonvested shares is computed using the treasury stock method, which assumes
any proceeds that could be obtained upon the exercise of stock options and vesting of nonvested
shares would be used to purchase common shares at the average market price for the period. The
assumed proceeds include the windfall tax benefit that would be received upon assumed exercise. The
following table provides a reconciliation between the computation of basic EPS and diluted EPS for
the years ended December 31, 2010, 2009 and 2008 (amounts in thousands, except per share amounts):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="19%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="34" style="border-bottom: 1px solid #000000"><b>For the years ended December 31,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Weighted Average</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Weighted Average</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Weighted Average</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Net Income</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Common Shares</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">EPS</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Net Income</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Common Shares</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">EPS</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Net Income</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Common Shares</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">EPS</td>
<td> </td>
</tr>
<tr style="font-size: 1pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="34" style="border-bottom: 1px solid #000000"> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Basic EPS
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">73,454</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">16,820</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4.37</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">44,306</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,420</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.87</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">45,362</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,229</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.98</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Dilutive effect of stock options
and nonvested share awards
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">65</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">63</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Diluted EPS
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">73,454</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">16,885</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4.35</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">44,306</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,454</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.87</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">45,362</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,292</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.97</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of December 31, 2010, 2009 and 2008, there were no antidilutive options outstanding.
</div>
</div>
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<!-- Begin Block Tagged Note 17 - us-gaap:StockholdersEquityNoteDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>17. Stockholders’ Equity:</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Stock Offering:</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On February 22, 2010, the Company closed on a public stock offering filed under a shelf
registration statement that was filed during the third quarter of 2009. As a result of the filing,
the Company sold a total of 1,437,500 shares of its common stock at a price to the public of $52.50
per share. The Company received net proceeds from the offering of approximately $71.7 million,
after deducting the underwriting discounts and commissions and offering expenses. The Company used
the net proceeds of the offering primarily to repay a portion of the debt outstanding under its
then existing $365 million revolving credit facility.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 18 - us-gaap:IncomeTaxDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>18. Income Taxes:</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company records an income tax provision for the anticipated tax consequences of the
reported results of operations. In accordance with ASC 740, the provision for income taxes is
computed using the asset and liability method, under which deferred tax assets and liabilities are
recognized for the expected future tax consequences of temporary differences between the financial
reporting and tax bases of assets and liabilities, and for operating losses and tax credit
carry-forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates
that apply to taxable income in effect for the years in which those tax assets and
liabilities are expected to be realized or settled.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The guidance of ASC 740 prescribes a recognition threshold and measurement attribute for the
financial statement recognition and measurement of a tax position taken or expected to be taken in
a tax return. It also provides guidance on derecognition, classification, interest and penalties,
accounting in interim periods, disclosure and transition. The evaluation of a tax position in
accordance with the guidance is a two-step process. The first step is recognition: the enterprise
determines whether it is more-likely-than-not that a tax position will be sustained upon
examination, including resolution of any related appeals or litigation processes, based on the
technical merits of the position. In evaluating whether a tax position has met the
more-likely-than-not recognition threshold, the enterprise should presume that the position will be
examined by the appropriate taxing authority that would have full knowledge of all relevant
information. The second step is measurement: a tax position that meets the more-likely-than-not
recognition threshold is measured to determine the amount of benefit to recognize in the financial
statements. The tax position is measured as the largest amount of benefit that is greater than 50
percent likely of being realized upon ultimate settlement. Tax positions that previously failed to
meet the more-likely-than-not recognition threshold should be recognized in the first subsequent
financial reporting period in which that threshold is met. Previously recognized tax positions
that no longer meet the more-likely-than-not recognition threshold should be derecognized in the
first subsequent financial reporting period in which that threshold is no longer met.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     There were no unrecognized tax benefits as of December 31, 2010 and 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company was notified on June 21, 2007 that it was being examined by the Internal
Revenue Service for the 2005 calendar year. The IRS has concluded its audit and on March 19, 2009
issued Form 4549-A, Income Tax Examination Changes for tax years ending December 31, 2007, 2006 and
2005. The IRS has proposed that cost recovery for tax revenue recognition does not clearly reflect
taxable income and that unused line fees paid on credit facilities should be capitalized and
amortized rather than taken as a current deduction. On April 22, 2009, the Company filed a formal
protest of the findings contained in the examination report prepared by the IRS. The Company
believes it has sufficient support for the technical merits of its positions and that it is
more-likely-than-not these positions will ultimately be sustained; therefore, a reserve for
uncertain tax positions is not necessary. If the Company is unsuccessful in its appeal, it might
ultimately be required to pay the related deferred taxes and any potential interest, possibly
requiring additional financing from other sources.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of December 31, 2010, the tax years subject to examination by the major taxing
jurisdictions, including the Internal Revenue Service, are 2003, 2005 and subsequent years. The
2003 tax year remains open to examination because of a net operating loss that originated in that
year but was not fully utilized until the 2005 tax year. The 2005, 2006, and 2007 tax years are
extended through December 31, 2011.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     ASC 740 requires the recognition of interest, if the tax law would require interest to be paid
on the underpayment of taxes, and recognition of penalties, if a tax position does not meet the
minimum statutory threshold to avoid payment of penalties. No interest or penalties were accrued
in 2010 or 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The income tax expense recognized for the years ended December 31, 2010, 2009 and 2008 is
comprised of the following (amounts in thousands):
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left">For the year ended December 31, 2010</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Federal</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>State</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Total</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current tax benefit
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(481</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(8</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(489</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred tax expense
</div></td>
<td> </td>
<td> </td>
<td align="right">40,163</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,330</td>
<td> </td>
<td> </td>
<td align="left"> </td>
<td align="right">47,493</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total income tax expense
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">39,682</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">7,322</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">47,004</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left">For the year ended December 31, 2009</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Federal</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>State</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Total</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current tax (benefit)/expense
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(707</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">177</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(530</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred tax expense
</div></td>
<td> </td>
<td> </td>
<td align="right">24,645</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,282</td>
<td> </td>
<td> </td>
<td align="left"> </td>
<td align="right">28,927</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total income tax expense
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">23,938</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,459</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">28,397</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left">For the year ended December 31, 2008</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Federal</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>State</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Total</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current tax benefit
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2,108</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(362</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2,470</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred tax expense
</div></td>
<td> </td>
<td> </td>
<td align="right">26,414</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,440</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">30,854</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total income tax expense
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">24,306</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,078</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">28,384</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company has recognized a net deferred tax liability of $164,971,005 and $117,206,100 as of
December 31, 2010 and 2009, respectively. The components of the net deferred tax liability are as
follows (amounts in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred tax assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Employee compensation
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,794</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">749</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Allowance for doubtful accounts
</div></td>
<td> </td>
<td> </td>
<td align="right">879</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">760</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Federal and state tax credit carryforward
</div></td>
<td> </td>
<td> </td>
<td align="right">774</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">714</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Federal and state net operating loss carryforward
</div></td>
<td> </td>
<td> </td>
<td align="right">2,564</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">158</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Accrued liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">864</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,171</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Guaranteed payments
</div></td>
<td> </td>
<td> </td>
<td align="right">243</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Intangible assets and goodwill
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">525</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Section 467 leases
</div></td>
<td> </td>
<td> </td>
<td align="right">350</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">373</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">420</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">243</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total deferred tax assets
</div></td>
<td> </td>
<td> </td>
<td align="right">7,888</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,693</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred tax liabilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Depreciation expense
</div></td>
<td> </td>
<td> </td>
<td align="right">2,352</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,058</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Intangible assets and goodwill
</div></td>
<td> </td>
<td> </td>
<td align="right">77</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Prepaid expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">776</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">687</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Cost recovery
</div></td>
<td> </td>
<td> </td>
<td align="right">169,654</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">120,154</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total deferred tax liability
</div></td>
<td> </td>
<td> </td>
<td align="right">172,859</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">121,899</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net deferred tax liability
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">164,971</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">117,206</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     A valuation allowance has not been provided at December 31, 2010 or 2009 since management
believes it is more likely than not that the deferred tax assets will be realized. In the event
that all or part of the deferred tax assets are determined not to be realizable in the future, an
adjustment to the valuation allowance would be charged to earnings in the period such determination
is made. Similarly, if the Company subsequently realizes deferred tax assets that were previously
determined to be unrealizable, the respective valuation allowance would be reversed, resulting in a
positive adjustment to earnings in the period such determination is made. In addition, the
calculation of tax liabilities involves significant judgment in estimating the impact of
uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner
inconsistent with management’s expectations could have a material impact on the Company’s results
of operations and financial position. At December 31, 2010, the Company
had state income tax
credit carryforwards of approximately $1.1 million which will begin to expire starting in the year
ending December 31, 2021. The Company also incurred state net operating loss carryforwards in
2010, 2009 and 2008 of approximately $2.5 million, $2.0 million and $1.9 million, respectively, of
which approximately $161,000 will begin to expire starting in the year ending December 31, 2013 and
the remainder starting in the year ending December 31, 2018.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company believes cost recovery to be an acceptable tax revenue recognition method for
companies in the bad debt purchasing industry and results in the reduction of current taxable
income as, for tax purposes, collections on finance receivables are applied first to principal to
reduce the finance receivables to zero before any taxable income is recognized. The temporary
difference from the use of cost recovery for income tax purposes resulted in a deferred tax
liability at December 31, 2010 and 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     A reconciliation of the Company’s expected tax expense at statutory tax rates to actual tax
expense for the years ended December 31, 2010, 2009 and 2008 consists of the following components
(amounts in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Federal tax at statutory rates
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">42,306</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">25,446</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">25,811</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">State tax expense, net of federal benefit
</div></td>
<td> </td>
<td> </td>
<td align="right">4,759</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,706</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,651</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(61</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">245</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(78</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="11" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total income tax expense
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">47,004</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">28,397</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">28,384</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 19 - us-gaap:CommitmentsAndContingenciesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b>19. Commitments and Contingencies:</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><i>Employment Agreements:</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company has employment agreements with all of its executive officers and with several
members of its senior management group, most of which expire on December 31, 2011. Such agreements
provide for base salary payments as well as bonuses which are based on the attainment of specific
management goals. Future compensation under these agreements is approximately $11.9 million. The
agreements also contain confidentiality and non-compete provisions.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><i>Litigation:</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company is from time to time subject to routine legal claims and proceedings, most of
which are incidental to the ordinary course of its business. The Company initiates lawsuits
against customers and are occasionally countersued by them in such actions. Also, customers,
either individually, as members of a class action, or through a governmental entity on behalf of
customers, may initiate litigation against the Company, in which they allege that the Company has
violated a state or federal law in the process of collecting on an account. From time to time,
other types of lawsuits are brought against the Company. While it is not expected that these or
any other legal proceedings or claims in which the Company is involved will, either individually or
in the aggregate, have a material adverse impact on the Company’s results of operations, liquidity
or financial condition, it is possible that, due to unexpected future developments, an unfavorable
resolution of a legal proceeding or claim could occur which may be material to the Company’s
results of operations for a particular period. The matter described below falls outside of the
normal parameters of the Company’s routine legal proceedings.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Attorney General for the State of Missouri filed a purported enforcement action against
PRA in 2009 that seeks relief for Missouri customers that have allegedly been injured as a result
of certain collection practices of PRA. PRA has vehemently denied any wrongdoing herein and in
2010, the complaint was dismissed with prejudice. The matter is currently on appeal, and so it is
not possible at this time to estimate the possible loss, if any.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><i>Forward Flow Agreements:</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company is party to several forward flow agreements that allow for the purchase of
defaulted consumer receivables at pre-established prices. The maximum remaining amount to be
purchased under forward flow agreements at December 31, 2010 is approximately $234.4 million.
</div>
</div>
false
--12-31
FY
2010
2010-12-31
10-K
0001185348
17104930
Yes
Large Accelerated Filer
1109804772
PORTFOLIO RECOVERY ASSOCIATES INC
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