X0202 4 2007-03-30 1 0001023031 DIRECT GENERAL CORP DRCT 0001256049 WILSON RONALD F 1281 MURFREESBORO ROAD NASHVILLE TN 37217 0 1 0 0 General Counsel & Secretary Common Stock 2007-03-30 4 D 0 8000 21.25 D 0 D Employee Stock Option (Right to Buy) 21.00 2007-03-30 4 D 0 24000 .25 D 2013-08-11 Common Stock 24000 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. Pursuant to the terms of the Merger Agreement, this option, which vested in five equal annual installments beginning on August 11, 2004, was cancelled and converted into the right to receive a cash payment of $21.25 less the exercise price per share. /s/ Ronald F. Wilson 2007-03-30