X0202 4 2007-03-30 1 0001023031 DIRECT GENERAL CORP DRCT 0001256043 ADAIR TAMMY R 1281 MURFREESBORO ROAD NASHVILLE TN 37217 0 1 0 0 President 0001255965 WILLIAM C ADAIR JR TRUST X1 0 0 0 1 Trust Common Stock 2007-03-30 4 D 0 470855 21.25 D 0 D Common Stock 2007-03-30 4 D 0 42725 21.25 D 0 I By TA Investments, LP Common Stock 2007-03-30 4 D 0 42725 21.25 D 0 I By WA Investments, LP Common Stock 2007-03-30 4 D 0 4323149 21.25 D 0 I By Trust Employee Stock Option (Right to Buy) 21.00 2007-03-30 4 D 0 72000 D 2013-08-11 Common Stock 72000 0 D Pursuant to the terms of the Agreement and Plan of Merger by and among Elara Holdings, Inc., Elara Merger Corporation, and Issuer (the "Merger Agreement"), each share of common stock was cancelled and converted into the right to receive a cash payment of $21.25 per share. TA Investments, LP is a limited partnership of which the reporting person is a general partner. The reporting person disclaims beneficial ownership except to the extent of her pecuniary interest therein. WA Investments, LP is a limited partnership of which the reporting person is a general partner. The reporting person disclaims beneficial ownership except to the extent of her pecuniary interest therein. These shares are owned directly by the William C. Adair, Jr. Trust, a ten-percent owner of Issuer, and indirectly by the reporting person as trustee. Pursuant to the terms of the Merger Agreement, this option, which provided for vesting in five equal annual installments beginning on August 11, 2004, was cancelled and converted into an option to purchase 1,530 shares of common stock of Elara Holdings, Inc. for $988.24 per share on the same terms as the cancelled option. /s/ Tammy R. Adair 2007-03-30