Document:

exv10w2

 

Exhibit 10.2

RESTRICTED STOCK AGREEMENT

(NON-EMPLOYEE DIRECTOR AWARD)

     This Restricted Stock Agreement (“Agreement”) dated to be effective                     ,
20                     (the “Effective Date”), is by and between Ace Cash Express, Inc., a Texas
corporation (the “Company”), and                                          (“Grantee”).

     WHEREAS, the Company desires to provide an incentive to Grantee, in the form of shares of the
Company’s capital stock, to encourage Grantee’s long-term performance for the Company and its
shareholders as a non-employee director and more closely align Grantee’s interest in the Company
with that of the Company’s shareholders;

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants set forth in this
Agreement, and intending to be legally bound hereby, Grantee and the Company (collectively, the
“Parties”) hereby agree as follows:

     1. Issuance of Restricted Stock. The Company hereby agrees to issue to Grantee, and
Grantee hereby agrees to purchase,                                          (                    ) shares (the “Restricted
Shares”) of Common Stock, at a purchase price of $0.01 per share (the “Purchase Price Per
Share”), in accordance with this Agreement and as a Restricted Stock Award subject to the terms
and conditions of the Ace Cash Express, Inc. Non-Employee Directors Stock Incentive Plan (the
“Plan”), which are incorporated herein, as an incentive for Grantee’s continued efforts on
behalf of the Company as a non-employee member of the Company’s Board of Directors (the
“Board”). This Agreement is a Restricted Stock Agreement under the Plan, and unless
otherwise defined in this Agreement, the capitalized terms used in this Agreement have the
respective meanings assigned to them in the Plan. The total purchase price for the Restricted
Shares shall be paid by Grantee’s delivery to the Company, at the time of execution of this
Agreement, of cash or a check or any combination thereof.

     2. Forfeiture.

     (a) On the date of any Cessation (as defined below) of Grantee’s continuous service as a
member of the Board (the “Termination Date”) before the Forfeiture Restrictions lapse with
respect to any of the Restricted Shares in accordance with Section 3, all of the Restricted Shares
that are then subject to the Forfeiture Restrictions (the “Unvested Restricted Shares”)
shall then automatically be forfeited by Grantee and returned and delivered to the Company without
any obligation of the Company to pay any amount to Grantee or to any other person or entity and
without any further action by Grantee. The “Cessation” of Grantee’s continuous service as
a member of the Board is any cessation of Grantee’s continuous service as a member of the Board,
for any reason or under any circumstances, including because of Grantee’s death or Grantee’s
disability (within the meaning of Section 22(e)(3) of the Internal Revenue Code) as determined by
the Committee, or as a result of not being nominated for or elected to a new term as a member of
the Board.

 

 

     (b) In addition, if Grantee breaches any of the terms and conditions of this Agreement or the
Plan, or any rules, regulations, policies, and procedures of the Committee for this Agreement or
the Plan, all of the Unvested Restricted Shares as of the date of such breach shall then
automatically be forfeited by Grantee and returned and delivered to the Company without any
obligation of the Company to pay any amount to Grantee or to any other person or entity and without
any further action by Grantee.

     (c) In addition, if vesting does not occur in accordance with Section 3, all of the Unvested
Restricted Shares shall then automatically be forfeited by Grantee and returned and delivered to
the Company without any obligation of the Company to pay any amount to Grantee or to any other
person or entity and without any further action by Grantee.

     (d) Grantee, by his acceptance of the Restricted Stock Award granted under this Agreement,
irrevocably grants to the Company a power of attorney to transfer any and all Unvested Restricted
Shares that are forfeited and agrees to execute any documents requested by the Company in
connection with such forfeiture and transfer. Grantee shall have no further right to or interest
in any Unvested Restricted Shares that are so forfeited and transferred. The Parties expressly
agree that these provisions governing the forfeiture and transfer of the Unvested Restricted Shares
shall be specifically enforceable by the Company in a court of equity or law.

     3. Lapse of Forfeiture Restrictions. Upon the termination or lapse of Forfeiture
Restrictions regarding any or all of the Restricted Shares (those Restricted Shares no longer
subject to Forfeiture Restrictions being “Vested Restricted Shares”), one or more stock
certificates representing the Vested Restricted Shares, free of Forfeiture Restrictions, shall be
delivered to Grantee at Grantee’s request in accordance with this Agreement. The Forfeiture
Restrictions shall terminate or lapse, and certain or all (as described below) of the Unvested
Restricted Shares shall become Vested Restricted Shares, if there has been no Cessation of
Grantee’s continuous service as a member of the Board and no breach by Grantee as described in
Section 2 before vesting in accordance with the following:

[Describe applicable vesting date or dates or event or events, including (if applicable)
performance goal or goals, and state related terms and provisions]

[Add if vesting in installments: If the installment of vesting of the Restricted Shares set forth
in                                          of this Section 3 would result in the vesting of a fractional Restricted Share,
such installment will result in the vesting of the next higher Restricted Share, and the final
installment (set forth in                                          of this Section 3) will result in the vesting of the balance
of the Restricted Shares.]

In addition, any or all of the Unvested Restricted Shares shall vest upon a decision by the
Committee, in its sole discretion and as of a date determined by the Committee, to vest those
Unvested Restricted Shares.

     4. Representations of Grantee. Grantee represents and warrants to the Company as
follows:

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     (a) Grantee has received a copy of the Plan and has read and become familiar with the terms
and conditions of the Plan and agrees to be bound, and to abide, by the Plan.

     (b) Grantee has reviewed this Agreement, has had an opportunity to obtain the advice of
counsel before executing this Agreement, and fully understands all of the terms and conditions of
this Agreement and the Plan.

     (c) Grantee hereby accepts the Restricted Stock Award granted by this Agreement subject to all
of the terms and conditions of this Agreement and the Plan.

     (d) Grantee is fully aware of the lack of liquidity of the Restricted Shares — e.g., because
of the restrictions on transferability of the Restricted Shares held by the Escrow Holder (as
defined below), Grantee may not be able to sell or dispose of the Restricted Shares or use them as
collateral for loans.

     5. Certain Restrictions on Transfer. Except as provided in Section 2, Grantee may not
sell, transfer, pledge, exchange, hypothecate, or otherwise dispose of (whether voluntarily, by
operation of law, or otherwise) any or all of the Unvested Restricted Shares, or any rights thereto
or interests therein, or any or all of the Vested Restricted Shares held by the Escrow Holder, or
any rights thereto or interests therein. Any transfer in violation of this Section 5 shall be void
and without any force or effect and shall constitute a breach of the terms and conditions of this
Agreement and the Plan. Grantee also understands that the Company is under no obligation to
register, under any applicable securities laws, any resale of any of the Restricted Shares that
become Vested Restricted Shares delivered to Grantee and that an exemption from such registration
requirements may not be available or may not permit Grantee to resell or transfer any of such
Vested Restricted Shares in the amounts or at the times proposed by Grantee.

     6. Dividend and Voting Rights. Subject to this Agreement, Grantee shall have all of
the rights of a shareholder with respect to the Restricted Shares, including the Unvested
Restricted Shares while they are held in escrow, including the right to vote the Restricted Shares
and to receive any and all dividends and other distributions made with respect to the Restricted
Shares. Without limiting the preceding sentence, Grantee shall be entitled to receive any cash
dividends or other cash distributions paid or made by the Company with respect to the Unvested
Restricted Shares, without deposit into escrow, and any other distributions of property with
respect to the Unvested Restricted Shares shall be deposited into escrow in accordance with Section
8(b). Upon any forfeiture of Unvested Restricted Shares, Grantee shall have no further rights with
respect to those Unvested Restricted Shares, but the forfeiture of Unvested Restricted Shares shall
not invalidate any votes or consents made or executed by Grantee with respect to those Unvested
Restricted Shares before their forfeiture or create any obligation to repay any cash dividend or
other cash distribution received with respect to those Unvested Restricted Shares before their
forfeiture.

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     7. Escrow of Restricted Shares.

     (a) To ensure the availability for delivery of Unvested Restricted Shares upon forfeiture in
accordance with Section 2 or Section 3, Grantee shall, upon execution of this Agreement, deliver
and deposit with an escrow holder designated by the Company (the “Escrow Holder”) the share
certificate(s) representing the Unvested Restricted Shares, together with corresponding stock
assignment(s), in the form attached hereto as Exhibit A, duly endorsed in blank. The
Unvested Restricted Shares and stock assignment(s) shall be held by the Escrow Holder, pursuant to
the Joint Escrow Instructions of the Company and Grantee attached hereto as Exhibit B,
until either (i) those Unvested Restricted Shares are forfeited in accordance with Section 2 or
Section 3 or (ii) the Forfeiture Restrictions terminate or lapse regarding those Unvested
Restricted Shares, which thereby become Vested Restricted Shares.

     (b) The Escrow Holder shall not be liable for any act that he or she may do or omit to do with
respect to holding the Restricted Shares and/or any other property in escrow while acting in good
faith and in the exercise of his or her judgment.

     (c) Upon the forfeiture of all or any of the Unvested Restricted Shares to the Company in
accordance with Section 2 or Section 3, the Escrow Holder, upon receipt of written notice from the
Company, shall take all steps necessary to accomplish the transfer of those Unvested Restricted
Shares to the Company.

     (d) Upon the termination or lapse of the Forfeiture Restrictions regarding all or any of the
Unvested Restricted Shares, the Escrow Holder shall promptly deliver to Grantee the certificate(s)
representing those Vested Restricted Shares.

     8. Capital Adjustments and Distributions.

     (a) The number of the Restricted Shares shall be adjusted in accordance with the provisions of
Section 8 of the Plan.

     (b) Any new, substituted, or additional securities or other property (including any money paid
other than as a regular cash dividend) that is, by reason of any stock dividend, stock split,
recapitalization, or other change in the outstanding Common Stock, distributed on or with respect
to, or exchanged for, (i) the Unvested Restricted Shares shall immediately be subject to the
Forfeiture Restrictions, the forfeiture provisions of Section 2 or Section 3, and the escrow
requirement of Section 7, all to the same extent as the Unvested Restricted Shares on or with
respect to which such distribution or exchange was made, and (ii) the Vested Restricted Shares that
are held by the Escrow Holder shall immediately be subject to the escrow requirement of Section 7,
to the same extent as the Vested Restricted Shares on or with respect to which such distribution
or exchange was made. Appropriate adjustments, as determined by the Committee, to reflect the
distribution or exchange of such securities or other property shall be made to the number of the
Restricted Shares in order to reflect any such event.

     9. Administration. The Committee shall interpret this Agreement and shall prescribe
such rules, regulations, policies, and procedures in connection with the operation of this
Agreement as the Committee determines (in good faith) to be advisable. The Committee may

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rescind and amend its rules, regulations, policies, and procedures from time to time. The
good-faith interpretation by the Committee of any of the provisions of this Agreement shall be
final and binding upon the Parties.

     10. Effect of Agreement. Neither the execution or effectiveness of this Agreement nor
any action of the Board or the Committee in connection with or relating to this Agreement shall be
deemed to give Grantee any rights except as may be expressed in this Agreement. The existence of
the Plan and this Agreement shall not affect in any way the right of the Board, the Committee, or
the shareholders of the Company to make or authorize any adjustment, recapitalization,
reorganization, or other change in the Company’s capital structure or its business, any merger or
consolidation or other transaction involving the Company, any issuance of other shares of Common
Stock or any other securities of the Company (including bonds, debentures, or shares of preferred
stock ahead of or affecting the Common Stock or the rights thereof), the dissolution or liquidation
of the Company or any sale or transfer of all or any part of the Company’s assets or business, or
any other corporate act or proceeding by or for the Company. Nothing in the Plan or in this
Agreement shall confer upon Grantee any right with respect to the Grantee’s service as a member of
the Board or affect or interfere in any way with the right of the Company, the Company’s
shareholders or Grantee to terminate Grantee’s service as a member of the Board (with or without
cause).

     11. Refusal to Transfer. The Company shall not be required to (i) transfer on its
books, or authorize the Company’s transfer agent to transfer on its books, any Unvested Restricted
Shares purported to have been sold or otherwise transferred in violation of any of the provisions
of the Plan or this Agreement, or (ii) treat as owner of such Unvested Restricted Shares, or accord
the right to vote or to any dividends or other distributions to, any purchaser or other transferee
to whom or which such Unvested Restricted Shares have been purported to be so transferred.

     12. Legend. If the Company so determines, the share certificate(s) representing the
Unvested Restricted Shares may be endorsed with the following legend, in addition to any legend
required under applicable securities laws:

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO FORFEITURE AND TO CERTAIN RESTRICTIONS
ON RESALE AND TRANSFER. NONE OF THE SHARES MAY BE TRANSFERRED EXCEPT AS SET FORTH IN THAT CERTAIN
RESTRICTED STOCK AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF
WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE COMPANY.

     13. Tax Matters. Grantee has reviewed with his own tax advisor(s) the federal, state,
and local tax consequences of this acquisition of the Restricted Shares and the other transactions
contemplated by this Agreement. Grantee is relying solely on such advisor(s) and not on any
statements or representations of the Company or any of its agents. Grantee understands and agrees
that he, and not the Company, shall be responsible for his own tax liability that may arise as a
result of the transactions contemplated by this Agreement. Grantee understands that Section 83 of
the Internal Revenue Code (including any amendments and successor provisions to section and any
regulations promulgated under such section), taxes as ordinary income the difference

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between the purchase price for the Restricted Shares and the fair market value of the
Restricted Shares as of the date any restrictions on the Restricted Shares terminate or lapse. In
this context, “restriction” includes the Forfeiture Restrictions. Grantee understands that he may
elect to be taxed at the time the Restricted Shares are granted, rather than when and as the
restrictions terminate or lapse (if ever), by filing an election under Section 83(b) of the
Internal Revenue Code with the Internal Revenue Service within thirty (30) days from the Effective
Date. GRANTEE ACKNOWLEDGES THAT IT IS HIS SOLE RESPONSIBILITY (AND NOT THE COMPANY’S) TO FILE
TIMELY THE ELECTION UNDER SECTION 83(b), EVEN IF GRANTEE REQUESTS THE COMPANY OR ITS
REPRESENTATIVES TO MAKE THAT FILING ON HIS BEHALF.

     14. Entire Agreement; Governing Law. This Agreement and the Plan constitute the
entire agreement of the Parties with respect to the subject matter hereof and supersede all prior
undertakings and agreements of the Parties with respect to the subject matter hereof. Nothing in
the Plan or in this Agreement (except as expressly provided herein) is intended to confer any
rights or remedies on any person other than the Parties. This Agreement is to be construed in
accordance with, enforced under, and governed by the laws of the State of Texas.

     15. Amendment; Waiver. The Committee may at any time or from time to time amend this
Agreement in any respect, except that no amendment that adversely affects Grantee may be effected
without a writing signed by the Parties. Any provision of this Agreement for the benefit of the
Company may be waived by the Committee or the Board. Unless otherwise expressed in the waiver,
such a waiver in one instance or with respect to one provision of this Agreement shall not be
deemed to be a waiver in any other instance or with respect to any other provision of this
Agreement.

     16. Effectiveness and Term. This Agreement is effective upon the Effective Date, and
it shall continue in effect until (i) the termination or lapse of the Forfeiture Restrictions
regarding all of the Restricted Shares or (ii) all of the Restricted Shares are transferred to the
Company and/or its assignee(s), unless sooner terminated by the Parties.

     17. Interpretive Matters. Whenever required by the context, pronouns and any
variation thereof used in this Agreement shall be deemed to refer to the masculine, feminine, or
neuter, and the singular shall include the plural, and vice versa. The term “include” or
“including” does not denote or imply any limitation. The term “business day” means
any Monday through Friday other than such a day on which banks are authorized to be closed in the
State of Texas. Each reference in this Agreement to a “Section” shall be deemed to be to a
section of this Agreement, unless otherwise stated. The captions and headings used in this
Agreement are inserted for convenience and shall not be deemed a part of this Agreement for
construction or interpretation.

     18. Venue. Any suit, action, or proceeding arising out of or relating to this
Agreement shall be brought in the United States District Court for the Northern District of Texas
or in a Texas state court in Dallas County, Texas, and the Parties shall submit to the jurisdiction
of such court. Each of the Parties irrevocably waives, to the fullest extent permitted by law, any
objection it or he may have to the laying of venue for any such suit, action, or proceeding brought
in such court. EACH OF THE PARTIES ALSO EXPRESSLY WAIVES ANY RIGHT

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IT OR HE HAS OR MAY HAVE TO A JURY TRIAL OF ANY SUCH SUIT, ACTION, OR PROCEEDING.

     19. Severability and Reformation. If any provision of this Agreement is held to be
illegal, invalid, or unenforceable under present or future law, such provision shall be fully
severable and severed, and this Agreement shall be construed and enforced as if such illegal,
invalid, or unenforceable provision were never a part hereof, and the remaining provisions of the
Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid,
or unenforceable provision or its severance.

     20. Notice. Any notice or other communication required or permitted hereunder shall
be given in writing and shall be deemed given, effective, and received upon prepaid delivery in
person or by courier, or upon the earlier of delivery or the third business day after deposit in
the United States mail if sent by certified mail, with postage and fees prepaid, in any case
addressed to the other Party at its or his address as shown beneath its or his signature to this
Agreement, or to such other address as such Party may designate in writing from time to time by
notice to the other Party in accordance with this Section 20.

	 	 	 	 	 	 	 
	 	 	ACE CASH EXPRESS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 

Address: 1231 Greenway Drive

Suite 600

Irving, Texas 75038

GRANTEE ACKNOWLEDGES AND AGREES THAT THE FORFEITURE RESTRICTIONS ON THE RESTRICTED SHARES SHALL
TERMINATE OR LAPSE, IF AT ALL, ONLY AS EXPRESSLY STATED IN THIS AGREEMENT (NOT THROUGH THE GRANT OF
THE RESTRICTED STOCK AWARD OR THE ISSUANCE OF THE RESTRICTED SHARES). GRANTEE FURTHER ACKNOWLEDGES
AND AGREES THAT NOTHING IN THIS AGREEMENT OR THE PLAN SHALL CONFER UPON GRANTEE ANY RIGHT WITH
RESPECT TO CONTINUATION OF GRANTEE’S SERVICE AS A MEMBER OF THE BOARD OR TO ANY FUTURE AWARDS.

	 	 	 	 	 
	DATED:                                         , 20                    

	 	SIGNED:	 	 
	 

	 	 	 	 

	 	 	 	 	 
	 

	 	Address:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

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Exhibit A to Restricted Stock Agreement

ASSIGNMENT SEPARATE FROM CERTIFICATE

     FOR VALUE RECEIVED, I,                                         , hereby sell, assign, and transfer unto Ace
Cash Express, Inc. (the “Company”) or                                          a total of                                         
(                    ) shares of the Company’s Common Stock standing in my name in the share transfer records
of the Company represented by Certificate No. ___delivered herewith and do hereby irrevocably
constitute and appoint                                          as attorney-in-fact, with full power of
substitution, to transfer such shares in the share transfer records of the Company.

	 	 	 
	 

	 	 
	(Signature)
	 	 
	 
	 	 
	 

	 	 
	(Printed name)
	 	 

INSTRUCTIONS:

Please do not fill in any blanks other than the signature and printed name lines. The purpose of
this assignment is to enable the transfer of shares upon forfeiture under the Restricted Stock
Agreement, without requiring additional signatures on the part of Grantee.

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Exhibit B to Restricted Stock Agreement

JOINT ESCROW INSTRUCTIONS

_____________, 2005

Ace Cash Express, Inc.

1231 Greenway Drive, Suite 600

Irving, TX 75038

Dear                     :

As Escrow Agent for both Ace Cash Express, Inc., a Texas corporation (the “Company”), and
                     (“Grantee”) of                                          (                    ) restricted shares of
Common Stock, $0.01 par value per share, of the Company (the “Restricted Shares”) under
that certain Restricted Stock Agreement between the Company and Grantee dated as of this date (the
“Agreement”), you are hereby authorized and directed to hold the Restricted Shares, the
stock certificate(s) evidencing the Restricted Shares, and any other property and documents
delivered to you pursuant to the Agreement (all of which shall be part of the “Restricted
Shares” hereunder) in accordance with the following instructions:

	1.	 	In the event any or all of the Restricted Shares are forfeited under the Agreement, the
Company shall give Grantee and you a written notice of forfeiture (the “Notice”) which
sets forth the number of the Restricted Shares to be forfeited under the Agreement (the
“Forfeited Shares”). Grantee and the Company hereby irrevocably authorize and direct
you to complete the transaction described in the Notice in accordance with the terms of the
Notice.

	2.	 	To complete the forfeiture of the Shares described in the Notice, you are directed to (a)
complete, as appropriate, the stock assignment(s) necessary for the transfer of Forfeited
Shares as described in the Notice, and (b) deliver them, together with the certificate(s)
evidencing the Forfeited Shares to be transferred, to the Company. You are then directed to
deliver to Grantee (i) the certificate(s) evidencing any of the Restricted Shares that are not
Forfeited Shares (“Vested Restricted Shares”), and (ii) any other property to which
Grantee is entitled under the Agreement.

	3.	 	Grantee irrevocably authorizes the Company to deposit with you any and all certificates
evidencing the Restricted Shares and corresponding stock assignments, and any additions to and
substitutions for the Restricted Shares as described in the Agreement, to be held by you
hereunder. Grantee hereby irrevocably constitutes and appoints you as his attorney-in-fact
and agent for the term of this escrow to execute, with respect to such Restricted Shares, all
documents necessary or appropriate to make such Restricted Shares negotiable and to complete
any transaction herein contemplated. Subject to the provisions of this paragraph 3, Grantee
shall be entitled to exercise all rights and

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	 	 	privileges of a shareholder of the Company with respect to the Restricted Shares while the
Restricted Shares are held by you.

	4.	 	Upon the termination or lapse of the Forfeiture Restrictions regarding any or all of the
Restricted Shares under the Agreement, such that they become Vested Restricted Shares, you
shall deliver to Grantee one or more certificates representing those Vested Restricted Shares
and any corresponding property to which Grantee is then entitled under the Agreement.

	5.	 	If, at the time of termination of this escrow (i.e., upon either (a) the termination or lapse
of the Forfeiture Restrictions regarding all of the Restricted Shares or (b) transfer of all
of the Forfeited Shares to the Company, in accordance with the Agreement), you should have in
your possession any documents, securities, or other property belonging to Grantee, you shall
deliver all of the same to the Grantee and shall be discharged of all further obligations
hereunder.

	6.	 	Your duties hereunder may be altered, amended, modified, or revoked only by a writing signed
by all of the parties hereto.

	7.	 	You shall be obligated only for the performance of such duties as are specifically set forth
herein and may rely, and shall be protected in relying when acting or refraining from acting,
on any instrument reasonably believed by you to be genuine and to have been signed or
presented by the proper party or parties. You shall not be personally liable for any act you
may do or omit to do hereunder as Escrow Agent or as attorney-in-fact for Grantee while acting
in good faith, and any act done or omitted by you pursuant to the advice of your own attorneys
shall be conclusive evidence of such good faith.

	8.	 	You are hereby expressly authorized to disregard any and all warnings given by any of the
other parties hereto or by any other person or entity, excepting only orders or process of
courts of law, and are hereby expressly authorized to comply with and obey orders, judgments,
or decrees of any court. In case you obey or comply with any such order, judgment, or decree,
you shall not be liable to any of the other parties hereto or to any other person or entity by
reason of such compliance, notwithstanding any such order, judgment, or decree being
subsequently reversed, modified, annulled, set aside, vacated, or found to have been entered
without jurisdiction.

	9.	 	You shall not be liable in any respect on account of the identity, authorities, or rights of
the parties executing or delivering, or purporting to execute or deliver, the Agreement or any
documents or papers deposited or called for hereunder.

	10.	 	You shall be entitled to employ such legal counsel and other experts as you may deem
necessary properly to advise you in connection with your obligations hereunder, may rely upon
the advice of such counsel, and may pay such counsel reasonable compensation therefor, for
which you will be reimbursed by the Company.

	11.	 	Your responsibilities as Escrow Agent hereunder shall terminate if you shall cease to be an
officer, employee, or agent of the Company or if you shall resign by written notice to

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	 	 	each other party hereto. In the event of any such termination, the Company shall appoint a
successor Escrow Agent.

	12.	 	If you reasonably require other or further instruments in connection with these Joint Escrow
Instructions or any obligations in respect hereto, the necessary party or parties hereto shall
join in furnishing such instruments.

	13.	 	It is understood and agreed that should any dispute arise with respect to the delivery and/or
ownership or right of possession of the Restricted Shares or any other property held by you
hereunder, you are authorized and directed to retain in your possession, without liability to
anyone, all or any part of such property until such dispute shall have been settled either by
mutual written agreement of the parties concerned or by a final order, decree, or judgment of
a court of competent jurisdiction after the time for appeal has expired and no appeal has been
perfected, but you shall be under no duty whatsoever to institute or defend any such
proceedings.

	14.	 	Any notice required or permitted hereunder shall be given in writing and shall be given by
personal or courier delivery or deposit in the United States mail, by registered or certified
mail with postage and fees prepaid, addressed to each of the other parties thereunto entitled
at the following addresses or at such other addresses as a party may designate by advance
written notice to each of the other parties hereto:

	 	 	 	 	 	 	 	 	 
	 	 	If to the Company:	 	Ace Cash Express, Inc.	 	 
	 	 	 	 	1231 Greenway Drive	 	 
	 	 	 	 	Suite 600	 	 
	 	 	 	 	Irving, Texas 75038	 	 
	 

	 	 	 	Attention:
	 	 
	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	If to Grantee:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	If to the Escrow Agent:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	c/o 1231 Greenway Drive	 	 
	 	 	 	 	Suite 600	 	 
	 	 	 	 	Irving, Texas 75038	 	 

	 	 	Any notice so given by personal or courier delivery shall be deemed to have been duly given
upon delivery, and any notice so given by United States mail shall be deemed to have been
duly given upon the earlier of receipt by the addressee or the third business day after
deposit in the mail.

	15.	 	By signing these Joint Escrow Instructions, you become a party hereto only for the purpose of
the Joint Escrow Instructions; you do not become a party to the Agreement.

	16.	 	This instrument shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and permitted assigns.

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	17.	 	These Joint Escrow Instructions shall be governed by, and construed and enforced in
accordance with, the laws of the State of Texas.

Very truly yours,

ACE CASH EXPRESS, INC.

	 	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	GRANTEE:	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	ESCROW AGENT:	 	 
	 
	 	 	 	 
	 	 	 

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Exhibit 10.1

ALLIANCE SEMICONDUCTOR CORPORATION

2575 Augustine Drive

Santa Clara, CA 95054-2914

December 1, 2005

Melvin L. Keating

     Re:                     EMPLOYMENT AGREEMENT

Dear Mel:

     On behalf of Alliance Semiconductor Corporation, a Delaware corporation (the
“Company”), I am pleased to offer you the position of Interim President, Chief Executive
Officer and Chief Financial Officer of the Company. Your employment by the Company shall be
governed by the following terms and conditions (this “Agreement”):

     1.      Duties and Scope of Employment.

          (a)      Position. For the term of your employment under this Agreement (your
“Employment”), the Company agrees to employ you in the position of Interim President, Chief
Executive Officer and Chief Financial Officer. You will report to the Company’s Board of
Directors. You will be working out of the Company’s office in Santa Clara, California.

          (b)      Obligations to the Company. During your Employment, you shall devote your full
business efforts and time to the Company. During your Employment, without the prior written
approval of the Company’s Board of Directors you shall not render services in any capacity to any
other person or entity and shall not act as a sole proprietor or partner of any other person or
entity or as a shareholder owning more than five percent of the stock of any other corporation.
Notwithstanding the foregoing, you may serve on corporate, civic or charitable boards or
committees, without such advance written consent, provided that such activities do not individually
or in the aggregate significantly interfere with the performance of your duties under this
Agreement. You shall comply with the Company’s policies and rules, as they may be in effect from
time to time during your Employment.

          (c)      No Conflicting Obligations. You represent and warrant to the Company that you are
under no obligations or commitments, whether contractual or otherwise, that are inconsistent with
your obligations under this Agreement. You shall not use or disclose, in connection with your
Employment, any trade secrets or other proprietary information or intellectual property in which
you or any other person has any right, title or interest and that your Employment will not infringe
or violate the rights of any other person. You represent and warrant to the Company that you have
returned all property and confidential information belonging to any prior employer.

 

 

          (d)      Commencement Date. You shall commence full-time Employment as soon as reasonably
practicable and in no event later than December 1, 2005.

     2.      Cash and Incentive Compensation.

          (a)      Salary. The Company shall pay you as compensation for your services an initial
base salary at a monthly rate of $35,000. Such salary shall be payable in accordance with the
Company’s standard payroll procedures. The compensation specified in this Subsection (a), together
with any modifications in such compensation that the Company may grant from time to time, is
referred to in this Agreement as “Base Salary.”

          (b)      Stock Options. Subject to the approval of the Board, the Company shall grant you
a stock option covering 100,000 shares of the Company’s Common Stock (the “Option”). The
Option shall be granted on the date of this Agreement. The exercise price of the Option shall be
equal to the fair market value of such stock on the date of grant, as determined in good faith by
the Board. The term of the Option shall be 10 years, subject to earlier expiration in the event of
the termination of your Employment. The Option is subject to a one-year cliff and vests ratably
annually over five years subject to continuous service. The Option shall be subject to the other
terms and conditions set forth in the Company’s 2002 Stock Option Plan (the “Stock Plan”)
and in the Company’s standard form of Stock Option Agreement.

          (c)      Acceleration Benefit. Please note that the Option will be subject to accelerated
vesting upon a Change of Control (as defined in the Stock Option Agreement) only as explicitly set
forth in the Stock Option Agreement; provided, however, that in order to be eligible for such
acceleration of vesting benefit, you must execute the Company’s standard form of release of all
claims agreement.

     3.      Vacation/PTO and Employee Benefits. During your Employment, you shall be eligible
to accrue paid vacation / paid time off in accordance with the Company’s vacation/PTO policy, as it
may be amended from time to time. During your Employment, you shall be eligible to participate in
the Salary Savings Plan (the “401(k) Plan”), subject to the generally applicable terms and
conditions of the plan and to the determinations of any person or committee administering such
plan, and you shall be covered under a standard life insurance policy. Additionally, beginning
September 2, 2006, you shall be eligible to participate in all other employee benefit plans
maintained by the Company subject in each case to the generally applicable terms and conditions of
the plan in question and to the determinations of any person or committee administering such plan.

     4.      Business Expenses. During your Employment, the Company shall reimburse you for
out-of-pocket expenses as and to the extent specified in Attachment B. In addition, as a
condition to receipt of expense reimbursement, you are required to submit to the Company reasonable
written evidence that the amount involved was both reasonable and necessary to the performance of
your duties under the Employment.

2

 

     5.      Termination.

          (a)      Termination of Employment. The Company may terminate your Employment at any time
and for any reason (or no reason) and with or without Cause. In the
event the Company terminates your Employment before the six month anniversary of the date of
this Agreement, the Company shall pay you the base salary for the period that is six months less
the period of your Employment, on a pro rated basis. You may terminate your Employment by giving
the Company 30 days’ advance notice in writing. Your Employment shall terminate automatically in
the event of your death. The termination of your Employment shall not limit or otherwise affect
your obligations under Section 6.

          (b)      Employment at Will. Your Employment shall be “at will,” meaning that either you
or the Company shall be entitled to terminate your Employment at any time and for any reason, with
or without Cause. Any contrary representations that may have been made to you shall be superseded
by this Agreement. This Agreement shall constitute the full and complete agreement between you and
the Company on the “at-will” nature of your Employment, which may only be changed in an express
written agreement signed by you and a duly authorized officer of the Company.

          (c)      Rights Upon Termination. You shall only be entitled to the compensation and
benefits earned and the reimbursements described in this Agreement for the period preceding the
effective date of the termination.

     6.      Non-Solicitation. During the period commencing on the date of this Agreement and
continuing until the first anniversary of the date when your Employment terminated for any reason,
you shall not directly or indirectly, personally or through others, solicit or attempt to solicit
(on your own behalf or on behalf of any other person or entity) either (i) any employee or any
consultant of the Company or any of the Company’s affiliates or (ii) the business of any customer
of the Company or any of the Company’s affiliates.

     7.      Pre-Employment Conditions.

          (a)      Waiver. You hereby amend and restate and waive the notice period and all other
requirements for the termination of the Consulting Agreement between the Company and you dated
November 4, 2005, including and not limited to the payment set forth in paragraph C of Exhibit B
thereto.

          By initialing where indicated below, you hereby confirm your acceptance of this Section 7(a).

          /s/MLK

          Employee

          (b) Confidentiality Agreement. Your acceptance of this offer and commencement of
employment with the Company is contingent upon the execution, and delivery to an officer of the
Company, of the Company’s Confidential Information and Invention Assignment Agreement, a copy of
which is enclosed for your review and execution (the “Confidentiality Agreement”), prior to
or on your Start Date.

          (c) Right to Work. For purposes of federal immigration law, you will be required to
provide to the Company documentary evidence of your identity and eligibility for employment in the United States. Such documentation must be provided to us within three (3)
business days of your Start Date, or our employment relationship with you may be terminated.

3

 

          (d) Verification of Information. This offer of employment is also contingent upon the
successful verification of the information you provided to the Company during your application
process, as well as a general background check performed by the Company to confirm your suitability
for employment. By accepting this offer of employment, you warrant that all information provided
by you is true and correct to the best of your knowledge, and you expressly release the Company
from any claim or cause of action arising out of the Company’s verification of such information.
You have a right to review copies of any public records obtained by the Company in conducting this
verification process unless you check the box on the signature page below.

     8. Successors.

          (a) Company’s Successors. This Agreement shall be binding upon any successor (whether
direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise)
to all or substantially all of the Company’s business and/or assets. For all purposes under this

          Agreement, the term “Company” shall include any successor to the Company’s business or
assets that becomes bound by this Agreement.

          (b) Your Successors. This Agreement and all of your rights hereunder shall inure to
the benefit of, and be enforceable by, your personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees.

     9. Miscellaneous Provisions.

          (a) Indemnification. The Company shall indemnify you to the maximum extent permitted
by applicable law and the Company’s Bylaws with respect to your service and you shall also be
covered under a directors and officers liability insurance policy paid for by the Company to the
extent that the Company maintains such a liability insurance policy now or in the future.

          (b) Notice. Notices and all other communications contemplated by this Agreement shall
be in writing and shall be deemed to have been duly given when personally delivered or when mailed
by U.S. registered or certified mail, return receipt requested and postage prepaid. In your case,
mailed notices shall be addressed to you at the home address that you most recently communicated to
the Company in writing. In the case of the Company, mailed notices shall be addressed to its
corporate headquarters, and all notices shall be directed to the attention of its Secretary.

          (c) Modifications and Waivers. No provision of this Agreement shall be modified,
waived or discharged unless the modification, waiver or discharge is agreed to in writing and
signed by you and by an authorized officer of the Company (other than you). No waiver by either
party of any breach of, or of compliance with, any condition or provision of this Agreement by the
other party shall be considered a waiver of any other condition or provision or of the same
condition or provision at another time.

4

 

          (d) Whole Agreement. No other agreements, representations or understandings (whether
oral or written and whether express or implied) which are not expressly set forth in this Agreement
have been made or entered into by either party with respect to the subject matter hereof. This
Agreement and the Confidentiality Agreement contain the entire understanding of the parties with
respect to the subject matter hereof.

          (e) Withholding Taxes. All payments made under this Agreement shall be subject to
reduction to reflect taxes or other charges required to be withheld by law.

          (f) Choice of Law and Severability. This Agreement shall be interpreted in accordance
with the laws of the State of California without giving effect to provisions governing the choice
of law. If any provision of this Agreement becomes or is deemed invalid, illegal or unenforceable
in any applicable jurisdiction by reason of the scope, extent or duration of its coverage, then
such provision shall be deemed amended to the minimum extent necessary to conform to applicable law
so as to be valid and enforceable or, if such provision cannot be so amended without materially
altering the intention of the parties, then such provision shall be stricken and the remainder of
this Agreement shall continue in full force and effect. If any provision of this Agreement is
rendered illegal by any present or future statute, law, ordinance or regulation (collectively, the
“Law”) then that provision shall be curtailed or limited only to the minimum extent
necessary to bring the provision into compliance with the Law. All the other terms and provisions
of this Agreement shall continue in full force and effect without impairment or limitation.

          (g) No Assignment. This Agreement and all of your rights and obligations hereunder
are personal to you and may not be transferred or assigned by you at any time. The Company may
assign its rights under this Agreement to any entity that assumes the Company’s obligations
hereunder in connection with any sale or transfer of all or a substantial portion of the Company’s
assets to such entity.

          (h) Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

[Signature Page Follows]

5

 

     We are all delighted to be able to extend you this offer and look forward to working with you.
To indicate your acceptance of the Company’s offer, please sign and date this letter in the space
provided below and return it to me, along with a signed and dated original copy of the
Confidentiality Agreement, on or before December 1, 2005. The Company requests that you begin work
in this new position on or before December 1, 2005. Please indicate the date (either on or before
the aforementioned date) on which you expect to begin work in the space provided below (the
“Start Date”).

	 	 	 	 	 
	Very truly yours,
	 
	 	 	 	 
	ALLIANCE SEMICONDUCTOR

CORPORATION
	 
	By:

	/s/	 	 	Bryant R. Riley

Bryant R. Riley
	Title:	Member, Compensation 
	Committee Board of Directors
	 
	 	 	 	 
	By:

	/s/	 	 	Alan B. Howe

Alan B. Howe
	Title:	Member, Compensation 
	Committee Board of Directors
	 
	 	 	 	 
	Address:	 	 	2575 Augustine Drive

Santa Clara, CA 95054-2914

ACCEPTED AND AGREED:

MELVIN L. KEATING

/s/ Melvin L. Keating

(Signature)

December 1, 2005                    

Date

I hereby waive my right to receive any public records as described above.

Anticipated Start Date: December 1, 2005

Attachment A: Confidential Information and Invention Assignment Agreement

6

 

ATTACHMENT A

CONFIDENTIAL INFORMATION AND

INVENTION ASSIGNMENT AGREEMENT

(See Attached)

7

 

ATTACHMENT B

EXPENSES

The Company shall reimburse the employee for the following out-of-pocket expenses that the
employee actually incurs in the course of performing his duties under the Employment:
reasonable living expenses while in Santa Clara, California (including, but not limited to:
meals, vehicle rental, hotel or other accommodations, plus commuting expenses related to
regular visits to the employee’s home or to similar locations). The employee shall submit
to the Company monthly a detailed statement (including bills over $35.00 in amount, receipts
and other appropriate backup materials) of the out-of-pocket expenses that the employee
actually incurs in the performance of his duties under the Employment and for which the
employee is seeking reimbursement (within seven (7) days after the close of each calendar
month) as incurred. Within seven (7) days of the receipt of such statement, the Company
shall approve and pay such expenses or notify the employee that it disapproves in whole or
in part the employee’s request for reimbursement. In the event that the Company disapproves
in whole or in part the employee’s request for reimbursement, it shall provide the employee
with the reasons for such disapproval. The employee expressly acknowledges and agrees that
under no circumstances shall out-of-pocket expenses include clerical support, office rent,
utilities, furniture, computers, basic phone service, or other routine expenses related to
the normal administration of the employee’s office.

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