Document:

Ace Cash Express, Inc.

 

Exhibit 10.1

SEPARATION AGREEMENT

     This Separation Agreement (“Agreement”), dated as of February 28, 2002, is
between Ace Cash Express, Inc., a Texas corporation (the “Company”), and R.
Edward McCarty, an individual resident of the State of Texas (“McCarty”). The
Company and McCarty are hereinafter referred to as the “Parties.”

     WHEREAS, McCarty has been employed by the Company as its Executive Vice
President-Operations and as President of the Ace Franchise Group and has been a
director and an officer of the Company’s direct and indirect subsidiaries (the
“Subsidiaries”);

     WHEREAS, McCarty is ceasing his employment with the Company and service to
the Subsidiaries on the date of this Agreement (the “Separation Date”);

     WHEREAS, the Parties desire to settle fully and finally, in the manner set
forth herein, all differences between them which have arisen, or which may
arise, prior to, or at the time of, the execution of this Agreement, including
(without limitation) any and all claims and controversies arising out of the
employment relationship between the Parties and the cessation thereof;

     NOW, THEREFORE, in consideration of the foregoing and the covenants set
forth in this Agreement, the Parties hereby agree as follows:

     1.     Cessation of Service. On the Separation Date McCarty resigns from, and
ceases, his employment with the Company and his service to the Subsidiaries.
The preceding sentence shall also serve as McCarty’s concurrent resignation
from each office and directorship that he has or has had with the Company and
the Subsidiaries.

     2.     General Releases and Covenants Not to Sue:

	 	(a)	 	McCarty, for himself and on behalf of his agents,
attorneys-in-fact, heirs, assigns, successors, executors, and
administrators, IRREVOCABLY AND UNCONDITIONALLY RELEASES, ACQUITS
AND FOREVER DISCHARGES the Company and its current and former
parent, subsidiary, affiliated, and related corporations, firms,
associations, partnerships, and other entities (including, without
limitation, the Subsidiaries), their successors and assigns, and the
current and former owners, shareholders, directors, officers,
partners, managers, members, employees, agents, attorneys,
representatives, and insurers of such corporations, firms,
associations, partnerships, and entitles, and their guardians,
successors, assigns, heirs, executors, and administrators
(collectively, “Company Releasees”) from any and all claims,
liabilities, obligations, agreements, damages, causes of action,
costs, losses, and attorneys’ fees and expenses whatsoever, whether
known or unknown, whether connected with McCarty’s employment by the
Company and service to the Subsidiaries or

1

 

	 	 	 	not, including (without limitation) any dispute, claim, charge, or
cause of action arising under Title VII of the Civil Rights Act of
1964, as amended, 42 U.S.C. § 2000e, et seq., the Americans with
Disabilities Act of 1990, 42 U.S.C. § 12101, et seq., the Texas
Commission on Human Rights Act, Tex. Labor Code § 21.001, et seq.,
the Age Discrimination in Employment Act of 1967, as amended, 29
U.S.C. § 621 et seq., the Employee Retirement Income Security Act
of 1974, as amended, 29 U.S.C. § 1001, et seq., and any other
municipal, local, state, or federal law, common or statutory, which
may have arisen, or which may arise, prior to or at the time of the
execution of this Agreement.
	 
	 	(b)	 	The Company, for itself and on behalf of its agents,
attorneys-in-fact, assigns, and successors and the Subsidiaries and
their respective agents, attorneys-in-fact, assigns, and successors,
IRREVOCABLY AND UNCONDITIONALLY RELEASES, ACQUITS AND FOREVER
DISCHARGES McCarty and his agents, attorneys-in-fact, guardians,
successors, assigns, heirs, executors, and administrators
(collectively, “McCarty Releasees”) from any and all claims,
liabilities, obligations, agreements, causes of action, costs,
losses, damages, and attorneys’ fees and expenses whatsoever,
whether known or unknown, whether connected with McCarty’s
employment by the Company and service to the Subsidiaries or not,
which may have arisen, or which may arise, prior to or at the time
of the execution of this Agreement; excluding from the foregoing
release, however, any claim that the Company or any of the
Subsidiaries may hereafter have arising from or relating to any
third-party claims made against the Company or any of the
Subsidiaries because of any actions taken by McCarty, or any
commitments or representations made by McCarty, that violated any of
McCarty’s fiduciary obligations to the Company or any of the
Subsidiaries.
	 
	 	(c)	 	Each of the Parties acknowledges and agrees that it or he is
expressly releasing all claims known and suspected as well as all
those unknown or not suspected and that its or his release includes
and contemplates the extinguishment of all claims under any and all
applicable laws.
	 
	 	(d)	 	McCarty also COVENANTS NOT TO SUE, OR OTHERWISE PARTICIPATE
IN ANY ACTION OR CLASS ACTION against, any of the Company Releasees
based upon any of the claims released in paragraph 2(a) above.
	 
	 	(e)	 	The Company also COVENANTS NOT TO SUE, OR OTHERWISE
PARTICIPATE IN ACTION OR CLASS ACTION against, any of the McCarty
Releasees based upon any of the claims released in paragraph 2(b)
above.

     3.     Revocation: McCarty may revoke this Agreement by written notice to the
Company within seven days after his execution hereof (the “Revocation Period”).
McCarty agrees that he will not receive the payments and benefits provided by
this Agreement if he revokes this Agreement. McCarty also acknowledges and
agrees that if written notice of revocation of this Agreement has not been
received by the Company before the expiration of the Revocation Period, he will
have forever waived his right to revoke this Agreement, and this Agreement
shall thereupon and thereafter be enforceable.

2

 

     4.     Non-Admission: McCarty acknowledges and agrees that by entering into
this Agreement, the Company does not admit, but specifically denies, any
violation of any local, state, or federal law.

     5.     Return of Company Property: McCarty agrees that he shall return all
property belonging to the Company or any of the Subsidiaries in his possession,
custody, or control on, or as soon as practicable after, the Separation Date.

     6.     Mutual Non-Disparagement: McCarty, solely on behalf of himself and his
attorneys, and the Company, solely on behalf of its officers, directors,
partners, managers, members, employees, agents, and attorneys who are managing
agents with actual authority to speak for the Company, with regard to McCarty
and his employment with the Company and his service to the Subsidiaries,
expressly acknowledge, agree, and covenant that they will not make any
statements, comments, or communications that could constitute disparagement of
one another or that may be considered to be derogatory or detrimental to the
good name or business reputation of one another; provided, however, that the
terms of this paragraph shall not apply to communications between McCarty and
his spouse, mental health professional, clergy, or attorneys, or between the
Company and its advisors and attorneys, to the extent (in any such case) that
such communications are subject to a claim of privilege existing under common
law, statute, or rule of procedure. Where applicable, this mutual
non-disparagement covenant applies to any public or private statements,
comments, or communications in any form, whether oral, written, or electronic.
The Parties further agree that they will not in any way solicit any such
statements, comments, or communications.

     7.     Payments and Benefits to McCarty: In consideration for all of
McCarty’s covenants herein:

	 	(a)	 	The Company shall pay McCarty, upon expiration of the
Revocation Period (if this Agreement has not been revoked by
McCarty), $50,000. Such amount shall be paid by check drawn on an
account of the Company.
	 
	 	(b)	 	The Company shall provide McCarty, as a former officer of the
Company and a former officer and director of certain of the
Subsidiaries, rights to indemnification under the applicable
corporate documents of the Company and the Subsidiaries and coverage
under any directors’ and officers’ insurance policy maintained by
the Company for itself and the Subsidiaries.
	 
	 	(c)	 	The Company shall accelerate, upon the expiration of the
Revocation Period, the vesting of all outstanding and unvested
options to purchase shares of the Company’s Common Stock granted to
McCarty under the Company’s applicable stock option plans and held
by him as of the Separation Date. Each existing option agreement
between the Company and McCarty regarding those outstanding options
shall be deemed amended by the preceding sentence.

3

 

	 	(d)	 	The Company shall afford McCarty three months after the
Separation Date to exercise his vested options to purchase shares of
the Company’s Common Stock under the Company’s applicable stock
option plans. The Company shall cooperate with McCarty in the
exercise of those options that he chooses to exercise (in accordance
with the terms of the documents governing those options).
	 
	 	(e)	 	The Company shall inform McCarty of, and cooperate with any
exercise by McCarty of, his rights under the Consolidated Omnibus
Benefits Reconciliation Act (COBRA) on and after the Separation
Date.

     8.     Tax Consequences of Payments: The Parties acknowledge and agree that
the Company shall not withhold taxes or FICA from any of the payments and
benefits described in paragraph 7 above and shall only report those proceeds as
income as required by law. McCarty, in consultation with his tax advisor,
shall determine issues respecting the tax consequences of these payments.
McCarty agrees to indemnify the Company against, and hold the Company harmless
from taxes, if any, and any penalties and interest assessed against the Company
resulting from the Parties’ tax treatment of the payments and benefits
described in paragraph 7 above.

     9.     Governing Law and Venue: This Agreement shall be governed by, enforced
under, and construed in accordance with the laws of the State of Texas, except
only to the extent preempted by federal law. Venue for any action or
proceeding relating to this Agreement or the consulting relationship hereunder
shall lie exclusively in courts in Dallas County, Texas.

     10.     Statement of Understanding: By executing this Agreement, McCarty
acknowledges that (a) he has had at least 21 days to consider the terms of this
Agreement and has considered its terms for that period of time or has knowingly
and voluntarily waived his right to do so; (b) he has consulted with, or has
had sufficient opportunity to consult with, an attorney of his own choosing
regarding the terms of this Agreement; (c) he has read this Agreement and fully
understands its terms and their import; (d) except as provided by this
Agreement, he has no contractual right or claim to the benefits described
herein; (e) the consideration provided for herein is good and valuable; and (f)
he is entering into this Agreement voluntarily, of his own free will, and
without any coercion, undue influence, threat, or intimidation of any kind or
type whatsoever.

[Signature Page Follows]

4

 

EXECUTED in Irving, Texas, this 28th day of February, 2002.

	 	 	 
	 	 	 
	 	
/s/ R. E. McCarty

R. EDWARD MCCARTY

EXECUTED in Irving, Texas, this 28th day of February, 2002.

	 	 	 
	 	
ACE CASH EXPRESS, INC.
	 	 	 
	 	By:	
/s/ Donald H. Neustadt

Donald H. Neustadt, Chief Executive Officer

5Ace Cash Express, Inc.

 

Exhibit 10.2

CONSULTING AGREEMENT

     This Consulting Agreement (“Agreement”), dated as of February 28, 2002
(the “Effective Date”), is between Ace Cash Express, Inc., a Texas corporation
(the “Company”), and R. Edward McCarty, an individual resident of the State of
Texas (“McCarty”). The Company and McCarty are hereinafter referred to as the
“Parties.”

     WHEREAS, the Company wishes to obtain McCarty’s services as a consultant,
upon the Company’s request, regarding various aspects of the Company’s business
with which McCarty is familiar as a result of his previous long-term employment
with the Company;

     WHEREAS, the Company wishes to obtain McCarty’s covenants not to engage in
certain activities that are competitive with the Company’s business or that
interfere with the Company’s business and relationships;

     NOW, THEREFORE, in consideration of the foregoing and the covenants set
forth in this Agreement, the Parties hereby agree as follows:

     1.     Consulting Services: McCarty shall, for the three consecutive years
after the Effective Date, consult with the Company and its agents (including
its attorneys), and provide to the Company and its agents such assistance, as
the Company or its agents may reasonably request from time to time in
connection with or relating to the Company’s operations, certain of the
Company’s third-party relationships, and litigation or regulatory proceedings
involving the Company. The consulting services shall include, as requested:

	 	(a)	 	McCarty’s advice regarding and involvement in helping to
manage and resolve the Company’s franchise-related issues and
matters, including franchising strategy, franchise selection, and
relationships with franchisees;
	 
	 	(b)	 	McCarty’s review of copies of certain internal operational
and financial reports and information provided to him, typically no
less frequently than monthly, and his advice to executive officers
of the Company regarding the subject matter of the reports and
information;
	 
	 	(c)	 	McCarty’s assistance in maintaining relationships with the
Company’s suppliers or vendors and employees; and
	 
	 	(d)	 	McCarty’s review of and advice regarding correspondence and
other materials provided to him relating to the Company’s litigation
and regulatory proceedings, especially those regarding the Company’s
relationship with Goleta National Bank.

The Company’s payments of amounts and provision of benefits to McCarty, as
described in paragraphs 5(a) and 5(b) below, shall constitute compensation to
McCarty for all of these consulting services. This paragraph shall not apply,
however, to any actions that McCarty takes

1

 

or must take as a separate party to any of such litigation or regulatory
proceedings in which the Company is also involved.

     2.     Trade Secrets: The Parties acknowledge and agree that, during the
consulting relationship hereunder, the Company will provide and make available
to McCarty, and McCarty will have access to and become familiar with, various
trade secrets and proprietary and confidential information of the Company, the
Company’s direct and indirect subsidiaries (the “Subsidiaries”), and their
affiliates, including processes, computer programs, compilations of
information, records, sales procedures, customer requirements, pricing
techniques, customer lists, identity of employees, methods of doing business,
and other confidential information (collectively, “Trade Secrets”) which are
owned by the Company, the Subsidiaries, and/or their affiliates and regularly
used in the operation of their business, and as to which the Company, the
Subsidiaries, and/or their affiliates take precautions to prevent dissemination
to persons other than certain directors, officers, partners, managers, members,
and employees. McCarty acknowledges and agrees that the Trade Secrets (a) are
secret and not known in the industry; (b) give the Company, the Subsidiaries,
and/or their affiliates an advantage over competitors who do not know or use
the Trade Secrets; (c) are of such value and nature as to make it reasonable
and necessary to protect and preserve the confidentiality and secrecy of the
Trade Secrets; and (d) are valuable and special and unique assets of the
Company, the Subsidiaries, and/or their affiliates, the disclosure of which
could cause substantial injury and loss of profits and goodwill to the Company,
the Subsidiaries and/or their affiliates. McCarty may not use in any way or
disclose any of the Trade Secrets, directly or indirectly, during the
consulting relationship or at any time thereafter, except (i) as required in
connection with a judicial or administrative proceeding or in connection with
rendering the consulting services described in paragraph 1 above, or (ii) if
the information becomes public knowledge other than as a result of an
unauthorized disclosure by McCarty. All files, records, documents,
information, data, and similar items relating to the business of the Company,
whether prepared by McCarty or otherwise coming into his possession, will
remain the exclusive property of the Company, and in any event must be promptly
delivered to the Company upon the expiration or termination of the consulting
relationship under this Agreement. McCarty agrees upon his receipt of any
subpoena, process, or other request to produce or divulge, directly or
indirectly, any Trade Secrets to any entity, agency, tribunal, or person,
McCarty shall timely notify and promptly hand deliver a copy of the subpoena,
process or other request to the Company. For this purpose, McCarty irrevocably
nominates and appoints the Company (including any attorney retained by the
Company), as his true and lawful attorney-in-fact, to act in McCarty’s name,
place and stead to perform any act that McCarty might perform to defend and
protect against any disclosure of any Trade Secret.

     3.     Noncompetition Covenant:

	 	(a)	 	During the consulting relationship hereunder and the three
consecutive years after the expiration or termination of the
consulting relationship (collectively, the “Restricted Period”),
McCarty shall not, anywhere within the Restricted Territory (as
defined below), directly or indirectly engage in any activity which,
or any activity for any enterprise or entity a material part of the
business of which, is a Competing Business (as defined below). The
activity prohibited by the preceding sentence includes any kind of
ownership (other than ownership of less than 1% of a class of
publicly traded securities) in or of, or acting as a director,
officer, agent,

2

 

	 	 	 	employee, or consultant of or for, any enterprise or entity
referred to in the preceding sentence. For the purpose of this
paragraph 3(a), the “Restricted Territory” means, collectively,
Dallas County, Texas; each county (or equivalent subdivision) of
any state, district, or territory of the United States of America
in which the Company or any of the Subsidiaries has any retail
location; and each county (or equivalent territory) adjacent to any
of the preceding counties (or equivalent territories). Also for
the purpose of this paragraph 3(a), “Competing Business” means any
business that is competitive with (i) any business conducted by the
Company or any of its Subsidiaries as of the Effective Date, (ii)
any business that the Company or any of its Subsidiaries plans, as
of the Effective Date, to conduct in the future if McCarty has been
involved, before the Effective Date, in formulating or implementing
those plans, and (iii) any business conducted, or any plan to
conduct business, by the Company or any of its Subsidiaries, in
addition to or different than any business or any plan described in
either of the two preceding clauses, during the consulting
relationship hereunder if McCarty renders any consulting time or
effort for the Company regarding that additional or different
business or plan. Further, for the purpose of this paragraph 3(a),
“indirectly” means the performance of services by any business or
entity in which McCarty either owns or possesses more than a 1%
interest in profits, losses, or capital or is a partner, or for
which McCarty acts as officer, director, agent, or representative,
or to which McCarty provides consulting or advisory services.
	 
	 	(b)	 	McCarty acknowledges and agrees that, in light of the
Company’s covenants herein and other applicable circumstances, the
restrictions imposed in this paragraph 3 are reasonable, are
prompted by the Company’s desire to protect its legitimate business
interests (including the Trade Secrets), and will not be unduly
burdensome to him.

     4.     Nonsolicitation Covenants:

	 	(a)	 	During the Restricted Period, McCarty shall not directly or
indirectly solicit, divert, or appropriate to or for any Competing
Business (as defined in paragraph 3(a) above) the financial services
business of any customer of the Company, or in any manner solicit or
induce any customer, franchisee, supplier, or other person with a
business relationship with the Company to cease that business
relationship with the Company or to refuse in the future to conduct
business with the Company. In this paragraph 4, “indirectly” is
used as defined in paragraph 3(a) above.
	 
	 	(b)	 	During the Restricted Period, McCarty shall not directly or
indirectly solicit, recruit, or employ any employee or regular
consultant of the Company, or in any other manner attempt to induce
any employee or regular consultant of the Company to leave the
employ of the Company or cease his or her consulting or other
business relationship with the Company, unless such person has not
been employed by or provided consulting services to the Company at
least 12 months

3

 

	 	 	 	before any solicitation, recruitment, or employment by McCarty or
any entity or enterprise with which McCarty is in any way
associated.
	 
	 	(c)	 	McCarty acknowledges and agrees that, in light of the
Company’s covenants herein and other applicable circumstances, the
restrictions imposed in this paragraph 4 are reasonable, are
prompted by the Company’s desire to protect its legitimate business
interests (including the Trade Secrets), and will not be unduly
burdensome to him.

     5.     Payments and Benefits to McCarty: In consideration for all of
McCarty’s covenants herein:

	 	(a)	 	For McCarty’s consulting services, the Company shall pay
McCarty during the term of the consulting relationship, by checks
drawn on one or more accounts of the Company, 36 monthly
installments of $8,680.58 each on or before the first day of each
calendar month, beginning March 1, 2002.
	 
	 	(b)	 	For McCarty’s consulting services, the Company shall
reimburse McCarty his reasonable out-of-pocket expenses incurred in
rendering the consulting services described in paragraph 1 above in
accordance with the Company’s reimbursement policies and procedures
in effect at the time.
	 
	 	(c)	 	For McCarty’s noncompetition and nonsolicitation covenants in
this Agreement applicable during that portion of the Restricted
Period which is the three-consecutive-year period after the
expiration or termination of the consulting relationship (the
“Post-consulting Period”), the Company shall pay McCarty during the
Post-consulting Period, by checks drawn on one or more accounts of
the Company, 36 monthly installments of $8,680.58 each on or before
the 1st day of each calendar month, beginning on the first day of
the first full calendar month of the Post-consulting Period. The
Company’s obligation to make such payments shall not apply if the
consulting relationship is terminated by McCarty’s death and shall
cease if McCarty dies during the Post-consulting Period.

     6.     Independent Contractor; Tax Consequences of Payments:

	 	(a)	 	The consulting services rendered by McCarty under this
Agreement shall be provided as an independent contractor to the
Company, and nothing in this Agreement creates or shall be deemed to
create the relationship of partners, joint venturers,
employer-employee, or principal-agent between the Parties. McCarty
shall have no authority, without the prior written consent of an
executive officer of the Company, to (i) create any obligation or
responsibility on the part of the Company, (ii) legally bind or
obligate the Company in any other manner, or (iii) supervise or
direct any of the Company’s employees.
	 
	 	(b)	 	The Company shall not withhold taxes or FICA from any of the
payments and benefits described in paragraph 5 above or report those
items as income to McCarty. McCarty shall be responsible for filing
all necessary tax returns and

4

 

	 	 	 	remitting amounts due to the proper taxing authorities for any
federal, state, and local tax (including social security tax) owed
by him with respect to the payments and benefits made to him by the
Company hereunder. McCarty agrees to indemnify the Company
against, and hold the Company harmless from taxes, and any
penalties and interest, assessed against the Company resulting from
the Parties’ tax treatment of the payments and benefits described
in paragraph 5 above.

     7.     Term and Termination of Consulting Relationship:

	 	(a)	 	The term of the consulting relationship expressed in this
Agreement shall commence on the Effective Date and continue until,
and shall expire upon, the third anniversary of the Effective Date,
unless the consulting relationship is sooner terminated in
accordance with paragraph 7(b) or paragraph 7(c) below.
	 
	 	(b)	 	The Company may, upon written notice to McCarty, terminate
the consulting relationship upon the Company’s determination that
(i) McCarty has refused or willfully and intentionally failed to
render the consulting services to the Company described in paragraph
1 above or has otherwise breached this Agreement to any material
extent, and if such refusal, failure, or breach is curable or
remediable, such refusal, failure, or breach continues without cure
or remedy after ten business days’ notice to McCarty by the Company,
or (ii) McCarty is unable to continue to render consulting services
because of any physical or mental injury, illness, or disability
that extends for at least three consecutive months. The consulting
relationship in this Agreement shall also terminate upon McCarty’s
death.
	 
	 	(c)	 	McCarty may, upon written notice to the Company, terminate
the consulting relationship upon (i) any failure by the Company to
make any of the payments or provide any of the benefits described in
paragraphs 5(a) and 5(b) above that continues, without cure or
remedy, after ten business days’ notice of failure to the Company by
McCarty, or (ii) a Change in Control, as defined in Exhibit A to
this Agreement.
	 
	 	(d)	 	In the event of the termination of the consulting
relationship, McCarty shall be entitled to all amounts payable and
benefits to be provided to him under paragraphs 5(a) and 5(b) above
through the calendar month in which the termination is effective.
Except for such amounts, and except as provided in paragraph 5(c)
above or paragraph 7(e) below, the Company shall have no further
obligation to pay any amount or provide any other benefit under this
Agreement. Upon McCarty’s death, any amount that may be due to him
under this Agreement shall be paid to his administrators, heirs,
legatees, or personal representatives, as may be appropriate.
	 
	 	(e)	 	If the consulting relationship is terminated by McCarty upon
a Change in Control, then the Company shall pay McCarty the sum of
all of the remaining monthly installments described in paragraphs
5(a) and 5(c) above that are due after the

5

 

	 	 	 	date of the termination of the consulting relationship. Such
payment shall be made in a lump sum in cash, by certified or
cashier’s check, or by wire transfer of immediately available funds
to an account designated by McCarty. Nevertheless, if McCarty
should breach or violate any of his covenants in paragraphs 3 and 4
above or should die at any time during the Restricted Period,
McCarty (or his legal successor or successors) shall be obligated
to immediately pay the Company (or its legal successor) an amount
equal to the sum of all of the monthly installments that (in the
absence of the payment to McCarty in accordance with the first two
sentences of this paragraph 7(e)) would have been payable to
McCarty for and after the month during which such breach or
violation or his death occurred. If McCarty must pay such amount
because of a breach or violation of a covenant, then he shall also
be obligated to pay interest on such amount, accruing from the date
that payment was made to McCarty in accordance with the first two
sentences of this paragraph 7(e), at the prime rate publicly
announced by Wells Fargo Bank Texas, National Association, in
effect on the date of such breach or violation (or, if less, the
maximum rate permitted by law). McCarty shall pay the amount or
amounts due in cash, by certified or cashier’s check, or by wire
transfer of immediately available funds to an account designated by
the Company.
	 
	 	(f)	 	The respective rights and obligations of the Parties under
this Agreement shall survive the expiration or termination of the
consulting relationship to the extent necessary to give full effect
to those rights and obligations. Without limiting the generality of
the preceding sentence, the respective rights and obligations of the
Parties under paragraphs 3 and 4 above, (except as otherwise
provided in paragraph 7(e) above) under paragraph 5(c) above, and
(if applicable) under paragraph 7(e) above shall survive the
expiration or termination of the consulting relationship. A Party’s
exercise of its or his right to terminate the consulting
relationship shall not be that Party’s exclusive right or remedy in
the event of the other Party’s failure to perform or breach of its
obligations under this Agreement.

     8.     Assignment: This Agreement is personal to McCarty, and he may not
assign or delegate any of his rights or obligations hereunder without the
Company’s prior written consent. The Company may assign or delegate its rights
and obligations hereunder to any successor or successors to all or
substantially all of the business and assets of the Company or to any entity
that controls, is controlled by, or is under common control with the Company so
long as that entity is capable of performing the obligations of the Company
under this Agreement. Subject to the foregoing, the rights and obligations
under this Agreement shall inure to the benefit of, and shall be binding upon,
the heirs, legatees, successors, representatives, and permitted assigns of the
respective Parties.

     9.     Severability and Reformation: The Parties intend all provisions of
this Agreement to be enforced to the fullest extent permitted by law. If,
however, any provision of this Agreement is held to be illegal, invalid, or
unenforceable under any present or future law, such provision shall be fully
severable; this Agreement shall be construed and enforced as if such illegal,
invalid, or unenforceable provision were never a part hereof; this Agreement
shall be construed and enforced as if such illegal, invalid, or unenforceable
provision were never a part

6

 

hereof; the remaining provisions of this Agreement shall remain in full
force and effect and shall not be affected by the illegal, invalid, or
unenforceable provision or by its severance; and, in lieu of such illegal,
invalid, or unenforceable provision, there shall be added as a part of this
Agreement a provision as similar in its terms to such illegal, invalid, or
unenforceable provision as may be possible and be legal, valid, and
enforceable. Without limiting the generality of the preceding sentence, if a
court of competent jurisdiction determines that the scope of any restriction in
paragraphs 3 and 4 above is too broad to be enforced as written, the Parties
intend that the court reform the restriction to such narrower scope as it
determines to be reasonable and enforceable.

     10.     Notices: Any notice or other communication to be given under this
Agreement by one Party to the other must be in writing and must be (a)
personally delivered, (b) mailed by registered or certified mail, postage
prepaid with return receipt requested, (c) delivered by a reputable courier
service, or (d) transmitted by facsimile, in any event to the address or
facsimile number set forth below (or to such other address or facsimile number
as may have been designated by either or both of the Parties from time to time
in accordance with this paragraph 10):

	 	 	 	 	 
	 	 	
If to the Company:
	 	Ace Cash Express, Inc.

1231 Greenway Drive

Suite 600

Irving, Texas 75038

Attention: Chief Executive Officer

Facsimile Number: (972) 550-5150
	 	 	 	 	 
	 	 	
If to McCarty:
	 	Mr. R. Edward McCarty

1604 Oak Meadow

Irving, Texas 75061

Facsimile Number: (     )      -     

Any notice or other communication delivered personally or by courier service
shall be deemed given and received as of actual receipt. Any notice or other
communication mailed as described above shall be deemed given and received
three business days after mailing or upon actual receipt, whichever is earlier.
Any notice or other communication transmitted by facsimile shall be deemed
given and received upon receipt of the transmission confirmation by the sender.

     11.     Amendments and Waivers: No amendment or modification of this
Agreement will be valid or binding upon the Parties unless it is in writing and
signed by both of the Parties. No waiver of any term or condition of this
Agreement, or of any performance or nonperformance of this Agreement, shall be
binding unless the waiver is in writing and signed by the Party against which
the waiver is to be enforced. Any waiver of any breach of any provision of
this Agreement will not operate or be construed as a waiver of any other or any
subsequent breach.

     12.     Certain Defined Terms: As used in this Agreement, (a) “include” and
“including” do not denote or imply any limitation, (b) “business day” means any
Monday through Friday other than any such day on which the executive offices of
the Company are closed, and (c)

7

 

“herein,” “hereof,” “hereunder,” and similar terms are references to this
Agreement as a whole and not to any particular provision of this Agreement.

     13.     Governing Law and Venue: This Agreement shall be governed by, enforced
under, and construed in accordance with the laws of the State of Texas, except
only to the extent preempted by federal law. Venue for any action or
proceeding relating to this Agreement or the consulting relationship hereunder
shall lie exclusively in courts in Dallas County, Texas.

     14.     Entire Agreement. This Agreement (with Exhibit A hereto) contains the
entire agreement of the Parties as to the subject matter hereof and supersedes
all prior agreements and understandings, whether oral or written, between the
Parties with respect to the subject matter hereof. Exhibit A is an integral
part of this Agreement.

     15.     Statement of Understanding: By executing this Agreement, McCarty
acknowledges that (a) he has consulted with, or has had sufficient opportunity
to consult with, an attorney of his own choosing regarding the terms of this
Agreement; (b) he has read this Agreement and fully understands its terms and
their import; (c) the consideration provided for herein is good and valuable;
and (d) he is entering into this Agreement voluntarily, of his own free will,
and without any coercion, undue influence, threat, or intimidation of any kind
or type whatsoever.

EXECUTED this 28th day of February, 2002.

	 	 	 
	 	
/s/ R. E. McCarty

R. EDWARD MCCARTY
	 	 	 
	 	 	 
	 	
ACE CASH EXPRESS, INC.
	 	 	 
	 	 	 
	 	By:	
/s/ Donald H. Neustadt

Donald H. Neustadt, Chief Executive Officer

8

 

Exhibit A to Consulting Agreement

“Change in Control” means the occurrence of any one or more of the following:

	(i)	 	Any Person becomes an Acquiring Person, except as the result of (A) any
acquisition of Voting Securities of the Company by the Company or (B) any
acquisition of Voting Securities of the Company directly from the Company
(as authorized by the Board).
	 
	(ii)	 	Individuals who constitute the Incumbent Board cease for any reason to
constitute at least a majority of the Board; and for this purpose, any
individual who becomes a member of the Board after the Effective Date
whose election, or nomination for election by holders of the Company’s
Voting Securities, was approved by the vote of at least a majority of the
individuals then constituting the Incumbent Board shall be considered a
member of the Incumbent Board (except that any such individual whose
initial election as director occurs as the result of an actual or
threatened election contest, within the meaning of Rule 14a-11 under the
Exchange Act, or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board shall not be so
considered).
	 
	(iii)	 	The consummation of a reorganization, merger, share exchange,
consolidation, or sale or disposition of all or substantially all of the
assets of the Company unless, in any case, the Persons who or which
Beneficially Own the Voting Securities of the Company immediately before
that transaction Beneficially Own, directly or indirectly, immediately
after the transaction, at least 75% of the Voting Securities of the
Company or any other corporation or other entity resulting from or
surviving the transaction (including a corporation or other entity which,
as the result of the transaction, owns all or substantially all of Voting
Securities of the Company or all or substantially all of the Company’s
assets, either directly or indirectly through one or more subsidiaries) in
substantially the same proportion as their respective ownership of the
Voting Securities of the Company immediately before that transaction.
	 
	(iv)	 	The Company’s shareholders approve a complete liquidation or dissolution
of the Company.

For the purposes of the preceding definition, the following terms have the
corresponding meanings:

“Acquiring Person” means any Person (other than an Excluded Person) who or
which, alone or together with all Affiliates and Associates of that Person, is
the Beneficial Owner of 25% or more of the Voting Securities of the Company
then outstanding.

“Affiliate” and “Associate” have the respective meanings ascribed to them in
Rule 12b-2 under the Exchange Act.

A-1

 

“Beneficial Owner” means beneficial owner as defined in Rule 13d-3 under the
Exchange Act. (“Beneficially Owns” has the correlative meaning.) Any
calculation of the number of Voting Securities outstanding at any particular
time, including for purposes of determining the particular percentage of such
outstanding Voting Securities of which any Person is the Beneficial Owner,
shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i) under
the Exchange Act.

“Board” means the Board of Directors of the Company.

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time
to time.

“Excluded Person” means:

	(i)	 	McCarty or any group (within the meaning of Section 13(d)(3) of the
Exchange Act) of which McCarty is a member;
	 
	(ii)	 	any Person that controls (as defined in Rule 12b-2 under the Exchange
Act) the Company as of the date of the Agreement or any group of which any
such Person is a member;
	 
	(iii)	 	any employee-benefit plan, or related trust, sponsored or maintained by
the Company or any of its Subsidiaries, or any trustee or other fiduciary
thereof; or
	 
	(iv)	 	any corporation or other entity owned directly or indirectly by the
shareholders of the Company in substantially the same proportions as their
ownership of the Voting Securities of the Company.

“Incumbent Board” means the members of the Board on the Effective Date
(subject, however, to clause (ii) of the definition of “Change in Control”).

“Person” means any individual, firm, corporation, partnership, limited
liability company, trust, or other entity, including any successor (by merger
or otherwise) of such entity.

“Subsidiary” means a corporation or other entity, whether incorporated or
unincorporated, of which at least a majority of the Voting Securities is owned,
directly or indirectly, by the Company.

“Voting Securities” means securities or other interests having by their terms
ordinary voting power to elect members of the board of directors of a
corporation or individuals serving similar functions for a noncorporate entity.

A-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]