Document:

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                                                                    Exhibit 10.1
                                CREDIT AGREEMENT

                           DATED AS OF MARCH 31, 2003

                                  BY AND AMONG

                             ACE CASH EXPRESS, INC.,
                                   AS BORROWER
                  WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION,
           AS ADMINISTRATIVE AGENT, CO-LEAD ARRANGER, AND AS A LENDER,
                              JPMORGAN CHASE BANK,
                  AS AGENT, SYNDICATION AGENT, AND AS A LENDER,
     J.P. MORGAN SECURITIES, INC., AS SOLE BOOKRUNNER AND CO-LEAD ARRANGER,
                             BANK OF AMERICA, N.A.,
                      AS SYNDICATION AGENT AND AS A LENDER,
     U.S. BANK NATIONAL ASSOCIATION, AS DOCUMENTATION AGENT AND AS A LENDER,

                                       AND

                         THE OTHER LENDERS PARTY HERETO
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                                TABLE OF CONTENTS
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ARTICLE I.  DEFINITIONS...........................................................................................2
    SECTION 1.01.  Certain Defined Terms..........................................................................2
    SECTION 1.02.  Accounting Terms; Financial Covenants.........................................................24
    SECTION 1.03.  Miscellaneous.................................................................................24

ARTICLE II.  THE LOANS...........................................................................................24
    SECTION 2.01.  The Total Commitments.........................................................................24
    SECTION 2.02.  Loans.........................................................................................26
    SECTION 2.03.  Notice of Revolving Credit Loans and Seasonal Revolving Credit Loans; Funding of Loans........27
    SECTION 2.04.  Notes; Repayment of Loans.....................................................................29
    SECTION 2.05.  Interest on Loans.............................................................................29
    SECTION 2.06.  Fees......................................................................................... 30
    SECTION 2.07.  Termination or Reduction of the Total Revolving Credit Commitment;
                    Termination of Seasonal Revolving Credit Commitment..........................................31
    SECTION 2.08.  Interest after Default; Alternate Rate of Interest............................................32
    SECTION 2.09.  Prepayment of Loans...........................................................................32
    SECTION 2.10.  Increased Costs...............................................................................33
    SECTION 2.11.  Break Funding Payments........................................................................34
    SECTION 2.12.  Taxes.........................................................................................35
    SECTION 2.13.  Payments Generally; Pro Rata Treatment, Sharing of Set-offs...................................36
    SECTION 2.14.  Letters of Credit.............................................................................38
    SECTION 2.15.  Incremental Facility..........................................................................43

ARTICLE III.  REPRESENTATIONS AND WARRANTIES.....................................................................44
    SECTION 3.01.  Organization; Legal Existence.................................................................44
    SECTION 3.02.  Authorization.................................................................................45
    SECTION 3.03.  Governmental Approvals........................................................................45
    SECTION 3.04.  Binding Effect................................................................................45
    SECTION 3.05.  Material Adverse Effect; Default..............................................................45
    SECTION 3.06.  Litigation; Compliance With Laws; Etc.........................................................45
    SECTION 3.07.  Financial Statements..........................................................................46
    SECTION 3.08.  Federal Reserve Regulation....................................................................46
    SECTION 3.09.  Taxes.........................................................................................47
    SECTION 3.10.  Employee Benefit Plans........................................................................47
    SECTION 3.11.  No Material Misstatements.....................................................................49
    SECTION 3.12.  Investment Company Act; Public Utility Holding Company Act....................................49
    SECTION 3.13.  Use of Proceeds...............................................................................49
    SECTION 3.14.  Subsidiaries..................................................................................49
    SECTION 3.15.  Title to Properties; Possession Under Leases; Trademarks......................................49
    SECTION 3.16.  Solvency......................................................................................50
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    SECTION 3.17.  Permits, Etc..................................................................................51
    SECTION 3.18.  Compliance with Environmental Laws............................................................51
    SECTION 3.19.  Labor Matters.................................................................................51
    SECTION 3.20.  Side Agreements...............................................................................53
    SECTION 3.21.  General.......................................................................................53

ARTICLE IV.  CONDITIONS OF CREDIT EVENTS.........................................................................53
    SECTION 4.01.  All Credit Events.............................................................................53
    SECTION 4.02.  First Credit Event............................................................................53

ARTICLE V.  AFFIRMATIVE COVENANTS................................................................................57
    SECTION 5.01.  Legal Existence...............................................................................57
    SECTION 5.02.  Businesses and Properties.....................................................................57
    SECTION 5.03.  Insurance.....................................................................................57
    SECTION 5.04.  Taxes.........................................................................................58
    SECTION 5.05.  Financial Statements, Reports, Etc............................................................58
    SECTION 5.06.  Litigation and Other Notices..................................................................60
    SECTION 5.07.  ERISA.........................................................................................61
    SECTION 5.08.  Maintaining Records; Access to Properties and Collateral; Inspections.........................62
    SECTION 5.09.  Use of Proceeds...............................................................................62
    SECTION 5.10.  [RESERVED]....................................................................................62
    SECTION 5.11.  Additional Guarantors and Pledge of Assets....................................................62
    SECTION 5.12.  Environmental Legislation.....................................................................63
    SECTION 5.13.  Pay Obligations to Lenders and Perform Other Covenants........................................64
    SECTION 5.14.  Assurances....................................................................................64
    SECTION 5.15.  Certain Changes...............................................................................64
    SECTION 5.16.  Assignment of Leases..........................................................................64
    SECTION 5.17.  Third-Party Payables..........................................................................64
    SECTION 5.18.  Interest Rate Hedging.........................................................................64
    SECTION 5.19.  Compliance with Agreements....................................................................65

ARTICLE VI.  NEGATIVE COVENANTS..................................................................................65
    SECTION 6.01.  Liens.........................................................................................65
    SECTION 6.02.  Sale and Lease-Back Transactions..............................................................67
    SECTION 6.03.  Indebtedness for Borrowed Money and Guarantees................................................67
    SECTION 6.04.  Equity Interest in Subsidiaries Equity Interests in Borrower..................................68
    SECTION 6.05.  Consolidations, Mergers and Sales of Assets...................................................68
    SECTION 6.06.  Loans and Advances............................................................................69
    SECTION 6.07.  Net Worth.....................................................................................69
    SECTION 6.08.  EBITDA........................................................................................70
    SECTION 6.09.  Debt to EBITDA Ratio..........................................................................70
    SECTION 6.10.  Cash Flow Coverage Ratio......................................................................70
    SECTION 6.11.  Use of Proceeds...............................................................................70
    SECTION 6.12.  ERISA.........................................................................................70
    SECTION 6.13.  Modifications of Certain Indebtedness; Other Agreements.......................................71
    SECTION 6.14.  Transactions with Affiliates..................................................................71
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    SECTION 6.15.  Other Agreements..............................................................................71
    SECTION 6.16.  Restricted Payments...........................................................................71
    SECTION 6.17.  Limitation on Investments.....................................................................72
    SECTION 6.18.  Change in Business............................................................................73
    SECTION 6.19.  Capital Expenditures..........................................................................73
    SECTION 6.20.  Deposit Accounts and Armored Couriers.........................................................73
    SECTION 6.21.  ACE Funding...................................................................................73
    SECTION 6.22.  Restrictive Agreements........................................................................74

ARTICLE VII.  EVENTS OF DEFAULT..................................................................................75

ARTICLE VIII.  AGENT.............................................................................................79

ARTICLE VIIIA.  ADMINISTRATIVE AGENT.............................................................................82

ARTICLE IX.  MISCELLANEOUS.......................................................................................85
    SECTION 9.01.  Notices.......................................................................................85
    SECTION 9.02.  Waivers; Amendments...........................................................................86
    SECTION 9.03.  Expenses; Indemnity, Damage Waiver............................................................87
    SECTION 9.04.  Successors and Assigns........................................................................88
    SECTION 9.05.  Survival......................................................................................91
    SECTION 9.06.  Counterparts; Integration; Effectiveness......................................................92
    SECTION 9.07.  Severability..................................................................................92
    SECTION 9.08.  Right of Set-off..............................................................................92
    SECTION 9.09.  Governing Law; Jurisdiction; Consent to Service of Process....................................92
    SECTION 9.10.  WAIVER OF JURY TRIAL..........................................................................93
    SECTION 9.11.  Headings......................................................................................93
    SECTION 9.12.  Confidentiality...............................................................................94
    SECTION 9.13.  Interest......................................................................................94
    SECTION 9.14. [RESERVED].....................................................................................95
    SECTION 9.15.  Nonapplicability of Chapter 346 et seq........................................................96
    SECTION 9.16.  Waiver of Consumer Rights.....................................................................96
    SECTION 9.17.  Entire Agreement..............................................................................96
    SECTION 9.18. Amendment and Restatement of Existing Credit Agreement.........................................96
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EXHIBITS:
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<S>               <C>
EXHIBIT A.........Form of Revolving Credit Notes
EXHIBIT B.........Form of Seasonal Revolving Credit Notes
EXHIBIT C.........Form of Borrowing Base Report
EXHIBIT D.........Form of Borrowing Notice
EXHIBIT E ........Form of Global Assignment and Acceptance
EXHIBIT F-1.......Form of Perfection Letter - Bank (Long Form)
EXHIBIT F-2.......Form of Perfection Letter - Bank (Short Form)
EXHIBIT G.........Form of Perfection Letter - Courier
EXHIBIT H.........Form of Cash Holdings Report
EXHIBIT I.........Form of Compliance Certificate
EXHIBIT J.........Form of Assignment and Assumption
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SCHEDULES:
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SCHEDULE 1..........Pricing Grid
SCHEDULE 2.01(a)....Revolving Credit Commitments
SCHEDULE 2.01(b)....Seasonal Revolving Credit Commitments
SCHEDULE 2.02(a)....Domestic Lending Offices
SCHEDULE 2.02(b)....Eurodollar Loan Lending Offices
SCHEDULE 3.06.......Litigation
SCHEDULE 3.14.......Subsidiaries
SCHEDULE 3.15(c)....Intellectual Property
SCHEDULE 3.15(d)....Deposit Accounts and Armored Couriers
SCHEDULE 3.18.......Environmental
SCHEDULE 6.01.......Existing Liens
SCHEDULE 6.02.......Sale Leaseback Transactions
SCHEDULE 6.03.......Existing Indebtedness
SCHEDULE 6.06.......Existing Loans and Advances
SCHEDULE 6.17.......Permitted Investments
</TABLE>

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                                CREDIT AGREEMENT

         This CREDIT AGREEMENT (this "Agreement"), dated as of March 31, 2003 is
by and among ACE CASH EXPRESS, INC., a Texas corporation (the "Borrower"), WELLS
FARGO BANK TEXAS, NATIONAL ASSOCIATION ("WFB"), as administrative agent for the
Lenders (WFB, in such capacity, is herein referred to as the "Administrative
Agent") and Co-Lead Arranger, JPMORGAN CHASE BANK ("JPMCB"), as agent for the
Lenders (JPMCB, in such capacity, is herein referred to as the "Agent") and
Syndication Agent, J.P. MORGAN SECURITIES, INC., as Sole Bookrunner and Co-Lead
Arranger, BANK OF AMERICA, N.A., as Syndication Agent, U.S. BANK NATIONAL
ASSOCIATION, as Documentation Agent, and the lenders named in Schedule 2.01
hereto (collectively, together with all successors and assigns, the "Lenders").

                             PRELIMINARY STATEMENTS

      A. Pursuant to that certain Amended and Restated Credit Agreement, dated
as of November 9, 2000 (as amended, supplemented, restated, or otherwise
modified, the "Existing Credit Agreement"), by and among Borrower, Wells Fargo
Bank Texas, National Association, as Administrative Agent, and certain other
financial institutions, as lenders (the "Existing Lenders"), Existing Lenders
provided Borrower with a revolving credit, seasonal revolving credit, and term
loan facility;

      B. Pursuant to a Global Assignment and Acceptance of even date herewith,
the Existing Lenders have assigned certain of their rights and obligations under
the Existing Credit Agreement to the several Lenders parties to such Global
Assignment and Acceptance;

      C. The parties hereto wish to amend and restate the Existing Credit
Agreement, which amendment and restatement is in extension and renewal, and not
in extinguishment or novation, of certain of the indebtedness outstanding under
the Existing Credit Agreement, as herein provided, it being acknowledged and
agreed by the Borrower, on behalf of itself and its Subsidiaries (other than ACE
Funding), that the Indebtedness under this Agreement constitutes an extension
and renewal of certain of the outstanding indebtedness under the Existing Credit
Agreement, and that all Liens and Guaranty Agreements that secure the repayment
of such outstanding indebtedness under the Existing Credit Agreement shall
continue to secure Indebtedness under this Agreement;

      NOW, THEREFORE, in consideration of the premises herein contained and
other good and valuable consideration, the sufficiency of which is hereby
acknowledged, the parties hereto, intending to be legally bound, agree as
follows:
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                                    AGREEMENT

                             ARTICLE I. DEFINITIONS

      SECTION 1.01. Certain Defined Terms. As used in this Agreement, the
following terms shall have the meanings specified below (such meanings to be
equally applicable to both the singular and plural of the terms defined):

      "AAA" shall have the meaning set forth in Section 9.14(b) hereof.

      "ABR Loans" shall mean any Loan bearing interest at an interest rate based
upon the Alternate Base Rate.

      "Acceptable Acquisition" shall mean (i) any acquisition by the Borrower of
all or substantially all of the business of, any business entity (whatever
corporate form and whether accomplished as an asset acquisition or a stock
purchase or acquisition of other forms of ownership interests) engaged in the
same business or a substantially similar line of business, but only if (a) the
purchase price of such acquisition (including the amount of Indebtedness of the
business entity or of the seller or sellers assumed in connection therewith) is
no more than $7,000,000 and (b) such business entity has either (I) positive
EBITDA for the twelve (12) month period immediately preceding the proposed date
of such acquisition or (II) positive Restated EBITDA for the twelve (12) month
period immediately preceding the proposed date of such acquisition (as
determined by Agent and Borrower), or (ii) any other acquisition approved by
Required Lenders in their sole discretion.

      "Acceptable Hedging Contract" shall have the meaning given to such term in
Section 5.18.

      "ACE Funding" shall mean ACE Funding, LLC, a Delaware limited liability
company.

      "ACE Funding Lender" shall have the meaning assigned to such term in
Section 6.21 hereof.

      "Adjusted LIBO Rate" shall mean, with respect to any Eurodollar Loan or
Reference Rate Loan for any Interest Period, an interest rate per annum (rounded
upwards, if necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for
such Interest Period multiplied by (b) the Statutory Reserve Rate.

      "Adjustment Date" shall mean with respect to any calculation of the
Applicable Margin following each fiscal quarter, (i) with respect to the final
fiscal quarter in each fiscal year of the Borrower, the earlier of (a) the date
on which Borrower's audited financial statements for the applicable fiscal year
are required to be filed with the Securities Exchange Commission under
applicable law after the end of such fiscal year and (b) two (2) Business Days
after the Borrower has delivered such audited financial statements to Agent with
respect to such fiscal year as required under Section 5.05(a) and

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(ii) with respect to any other fiscal quarter, the earlier of (a) the date which
is forty five (45) days after the end of such fiscal quarter and (ii) the date
which is two (2) Business Days after the Borrower has delivered the financial
statements to Agent with respect to such fiscal quarter as required under
Section 5.05(b).

      "Administrative Agent" shall have the meaning assigned to such term in the
preamble to this Agreement, and any successor Administrative Agent appointed
pursuant to the terms of this Agreement.

      "Affiliate" of any Person shall mean any other Person which, directly or
indirectly, controls or is controlled by or is under common control with such
Person and, without limiting the generality of the foregoing, includes (a) any
Person which beneficially owns or holds ten percent (10%) or more of any class
of voting securities of such Person or ten percent (10%) or more of the equity
interest in such Person, (b) any Person of which such Person beneficially owns
or holds ten percent (10%) or more of any class of voting securities or in which
such Person beneficially owns or holds ten percent (10%) or more of the equity
interest in such Person and (c) any director, officer or employee of such
Person. For the purposes of this definition, the term "control" (including, with
correlative meanings, the terms "controlled by" and "under common control
with"), as used with respect to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of such Person, whether through the ownership of voting securities or
by contract or otherwise.

      "Agent" shall have the meaning assigned to such term in the preamble to
this Agreement, and any successor Agent appointed pursuant to the terms of this
Agreement.

      "Agreement" shall mean this Credit Agreement, as amended, modified,
renewed or supplemented from time to time.

      "Alternate Base Rate" shall mean, for any day, a rate per annum equal to
the greatest of (a) the Prime Rate in effect on such day, (b) the Base CD Rate
in effect on such day plus 1% and (c) the Federal Funds Effective Rate in effect
on such day plus 1/2 of 1%. Any change in the Alternate Base Rate due to a
change in the Prime Rate, the Base CD Rate or the Federal Funds Effective Rate
shall be effective from and including the effective date of such change in the
Prime Rate, the Base CD Rate or the Federal Funds Effective Rate, respectively.

      "American Capital Agent" shall mean American Capital Financial Services,
Inc., and any successor agent appointed pursuant to the terms of the American
Capital Agreement.

      "American Capital Agreement" shall mean that certain Note Purchase
Agreement of even date herewith by and among the Borrower, American Capital
Agent, and the purchasers of the American Capital Notes named therein, as the
same may be from time to time amended, supplemented, restated, or otherwise
modified with the prior written consent of Required Lenders as set forth in
Section 6.13.

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      "American Capital Notes" shall mean the promissory notes of the Borrower
of even date herewith in the aggregate principal amount of $40,000,000 issued
under the American Capital Agreement, as the same may be from time to time
renewed, extended, or otherwise modified with the prior written consent of
Required Lenders as set forth in Section 6.13.

      "American Capital Obligations" shall mean the "ACFS Obligations", as such
term is defined in the Intercreditor Agreement.

      "American Capital Transactions" shall mean the execution, delivery and
performance by the Borrower and its Subsidiaries (other than ACE Funding) of the
American Capital Agreement, the American Capital Notes, and the other
transaction documents relating thereto to which the Borrower or any of its
Subsidiaries is a party, and the funding of the borrowings by the Borrower
thereunder.

      "Applicable Commitment Fee Rate" shall mean the rate of 0.50% per annum.

      "Applicable Lending Office" shall mean, with respect to each Lender, such
Lender's Domestic Lending Office in the case of an ABR Loan and such Lender's
Eurodollar Lending Office in the case of a Eurodollar Loan or a Reference Rate
Loan.

      "Applicable Margin" shall mean the margin to be added to the Alternate
Base Rate and Adjusted LIBO Rate which is equal to the applicable percentage
rate per annum set forth in the Pricing Grid for the applicable type of Loan
(i.e., ABR Loan, Reference Rate Loan, or Eurodollar Loan). On the Closing Date
and continuing through and including the day immediately preceding the first
Adjustment Date occurring after the Closing Date, the Applicable Margin shall be
the Applicable Margin for the applicable Type of Loan when the Debt to EBITDA
Ratio is greater than or equal to 2.75 to 1.00 but less than 3.00 to 1.00 and
for each period thereafter beginning on an Adjustment Date and ending on the day
immediately preceding the next succeeding Adjustment Date, the Applicable Margin
for the applicable Type of Loan set forth opposite the Debt to EBITDA Ratio as
determined at the end of the most recently ended fiscal quarter prior to the
applicable Adjustment Date.

      "Applicable Percentage" shall mean, with respect to any Lender, the
percentage of the Total Commitments represented by such Lender's Total
Commitment. If the Total Commitments or any part thereof have terminated or
expired, the Applicable Percentages shall be determined based upon the Total
Commitments most recently in effect, giving effect to any assignments.

      "Assessment Rate" shall mean, for any day, the annual assessment rate in
effect on such day that is payable by a member of the Bank Insurance Fund
classified as "well-capitalized" and within supervisory subgroup "B" (or a
comparable successor risk classification) within the meaning of 12 C.F.R. Part
327 (or any successor provision) to the Federal Deposit Insurance Corporation
for insurance by such Corporation of time deposits made in dollars at the
offices of such member in the United States; provided that

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if, as a result of any change in any law, rule or regulation, it is no longer
possible to determine the Assessment Rate as aforesaid, then the Assessment Rate
shall be such annual rate as shall be determined by the Agent to be
representative of the cost of such insurance to the Lenders.

      "Assignment and Assumption" shall mean an assignment and assumption
entered into by a Lender and an assignee and accepted by the Agent and the
Borrower, in substantially the form of Exhibit J annexed hereto.

      "Base CD Rate" shall mean the sum of (a) the Three-Month Secondary CD Rate
multiplied by the Statutory Reserve Rate plus (b) the Assessment Rate.

      "Board" shall mean the Board of Governors of the Federal Reserve System of
the United States.

      "Borrower" shall have the meaning assigned to such term in the preamble to
this Agreement.

      "Borrowing Base" shall mean the "Net Amount Available for Borrowing" on
each Borrowing Base Report, subject to verification by the Agent. The
calculation of the Borrowing Base shall utilize the eligibility criteria, rates
of advance, borrowing base factors and dollar ceilings for various components as
are specified on Exhibit C hereto and incorporated herein by reference.

      "Borrowing Base Report" shall mean the Borrowing Base Report with respect
to Cash Holdings provided as Collateral to the Lenders by the Borrower and its
Subsidiaries (other than ACE Funding) in the form of Exhibit C hereto.

      "Borrowing Notice" shall have the meaning assigned to such term in Section
2.03 hereof.

      "Business Day" shall mean any day, other than a Saturday, Sunday or legal
holiday in the States of Texas and California on which banks are open for
substantially all their banking business in Dallas and San Francisco,
respectively; provided, however, if any determination of a "Business Day" shall
relate to a Eurodollar Loan or a Reference Rate Loan, the term "Business Day"
shall in addition exclude any day on which banks are not open for dealings in
dollar deposits in the London interbank market.

      "Capital Expenditures" shall mean capital expenditures of the Borrower and
its Subsidiaries on a Consolidated basis, as computed and calculated in
accordance with GAAP, including, without limitation, all principal payments made
during the applicable period on Capitalized Lease Obligations.

      "Capitalized Lease" shall mean, with respect to any Person, any lease or
any other agreement for the use of real and/or personal property which in
accordance with GAAP should be capitalized on the lessee's or user's balance
sheet.

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      "Capitalized Lease Obligation" shall mean an obligation to pay rent or
other amounts under any Capitalized Lease, and for purposes hereof the amount of
such obligation shall be the capitalized amount thereof determined in accordance
with GAAP.

      "Cash Flow Coverage Ratio" shall mean, in each case, with respect to the
Borrower and its Consolidated Subsidiaries: (a) the total without duplication,
during the twelve-month period preceding the applicable date of determination,
of (i) EBITDA, minus (ii) Federal, state and local income taxes actually paid,
minus (iii) total capital expenditures paid in cash, minus (iv) cash dividends
paid, minus (v) treasury stock purchased, plus (v) rent expense, divided by (b)
the total without duplication during the same specified twelve month period of
(i) cash Interest Expense paid, plus (ii) the current portion of all Capitalized
Lease Obligations, plus (iii) the current portion of all long-term debt, plus
(iv) rent expense.

      "Cash Holdings" shall mean Borrower's cash in the Borrower's stores, plus
Borrower's cash in the Borrower's depository accounts with WFB, plus Borrower's
cash in the Borrower's depository accounts with Other Financial Institutions,
plus the amount of items of the Borrower in clearing at WFB and at Other
Financial Institutions, plus cash of the Borrower in transit with armored
couriers.

      "Cash Holdings Report" shall mean the Cash Holdings Report in the form of
Exhibit H hereto.

      "Certificate of Update" shall mean a Certificate signed by a Responsible
Officer of the Borrower which sets forth any changes during the prior month to
Schedule 3.15(d) hereto, any of the Schedules attached to the Intercreditor
Agreement, or any of the Schedules attached to the Security Agreement.

      "Change in Control" shall mean (i) any transaction or series of related
transactions as a result of which any Person or Persons, including but not
limited to any "person" or "group" (as such terms are used in sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")),
other than the Permitted Investors, acquires beneficial ownership (as defined in
Rules 13(d)-3 and 13(d)-5 under the Exchange Act) on a fully-diluted basis of
30% or more of (a) the then outstanding shares of common stock of the Borrower
or (b) the combined voting power of the then outstanding voting securities of
the Borrower entitled to vote generally in the election of directors (provided,
however, that an underwritten public offering of the Borrower's common stock
registered under the Securities Act of 1933, as amended, that has been approved
by a majority of the Continuing Directors shall not be deemed to be a Change of
Control); (ii) any merger, consolidation, share exchange, sale of assets or
other reorganization to which the Borrower is a party and as a result of which
members of the Board of Directors in office immediately prior to such
transaction or event thereafter constitute less than a majority of the whole
Board of Directors; (iii) the first day on which a majority of the members of
the Board of Directors of the Borrower is not constituted by Continuing
Directors; or (iv) a "Change of Control" under the American Capital Agreement.
As used herein, "Continuing Directors" shall mean as of any date of

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determination, the directors of the Borrower on the Closing Date and each other
individual becoming a director subsequent to the Closing Date whose election, or
nomination for election by the Borrower's stockholders, was approved by a vote
of a majority of the Continuing Directors as of such date, and "Permitted
Investors" shall mean, collectively, (i) all officers of the Borrower on the
Closing Date, (ii) all members of the Board of Directors of the Borrower on the
Closing Date, (iii) Raymond C. Hemmig, (iv) Donald H. Neustadt, (v) Marshall B.
Payne, (vi) Edward W. Rose III, (vii) Greenbriar Partners, Ltd., and (viii) FMR
Corp.

      "Change in Law" shall mean (a) the adoption of any law, rule or regulation
after the date of this Agreement, (b) any change in any law, rule or regulation
or in the interpretation or application thereof by any Governmental Authority
after the date of this Agreement or (c) compliance by any Lender or the Issuing
Bank (or, for purposes of Section 2.10(b), by any lending office of such Lender
or by such Lender's or the Issuing Bank's holding company, if any) with any
request, guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement.

      "Closing Date" shall mean the date of this Agreement.

      "Code" shall mean the Internal Revenue Code of 1986, as amended from time
to time, or any successor Federal tax code, and any reference to any statutory
provision shall be deemed to be a reference to any successor provision or
provisions.

      "Collateral" shall mean all assets, tangible or intangible, real, personal
or mixed, of the Borrower and each of its Subsidiaries other than ACE Funding
including, without limitation, all Deposit Accounts in which Cash Holdings or
any Subsidiary's Cash Holdings are maintained, all Cash Holdings and each
Subsidiary's Cash Holdings, and other cash, accounts receivable, instruments,
patents, trademarks, service marks, all other intellectual property, all
software whether purchased by or developed by the Borrower or any of its
Subsidiaries other than ACE Funding, general intangibles, furniture and
equipment of the Borrower and its Subsidiaries other than ACE Funding, and all
partnership interests, capital stock or other Equity Interests of each
Subsidiary of the Borrower other than ACE Funding, but excluding any assets held
by Borrower for the benefit of non-Affiliates in which no security interest or
other Lien may be granted, the Borrower's interest in any Indebtedness of ACE
Funding owed to the Borrower, and all assets or properties of ACE Funding.

      "Collateral Agency Agreement" shall mean that certain Collateral Agency
Agreement dated as of the Closing Date by and among the Borrower, the
Administrative Agent, Travelers, American Capital Agent, and Wilmington Trust
Company, as the same may be amended, restated or modified from time to time.

      "Collateral Agent" shall mean the collateral agent pursuant to the
Collateral Agency Agreement.

                                       7
<PAGE>
      "Commitment Fee" shall have the meaning set forth in Section 2.06 hereof.

      "Compliance Certificate" shall mean the Financial Covenant and Compliance
Certificate with respect to financial and other covenants set forth in this
Agreement provided to the Lenders by the Borrower in the form of Exhibit I
hereto.

      "Consolidated" shall mean, in respect of any Person, as applied to any
financial or accounting term, such term determined on a consolidated basis in
accordance with GAAP (except as otherwise required herein) for the Person and
all consolidated Subsidiaries thereof.

      "Credit Documents" shall mean collectively, this Agreement, the Notes, the
Letters of Credit, the Guaranty Agreements, the Collateral Agency Agreement, the
Intercreditor Agreement, the Security Documents, the Letter Agreements, the
Lender Control Agreements, all Hedging Contracts entered into by the Borrower or
any of its Subsidiaries (other than ACE Funding) with any Lender or any
Affiliate of any Lender, all other agreements, documents and instruments and
other writings contemplated by this Agreement, all assignments, deeds,
guaranties, pledges, instruments, certificates and agreements now or hereafter
executed or delivered to Administrative Agent, Agent, or any Lender pursuant to
any of the foregoing, and all amendments, modifications, renewals, extensions,
increases and rearrangements of, and substitutions for, any of the foregoing.

      "Credit Event" shall mean each borrowing and each issuance of a Letter of
Credit hereunder.

      "Credit Transactions" shall mean the execution, delivery and performance
by the Borrower and each Guarantor of the Credit Documents to which it is a
party, the borrowings and the issuance of Letters of Credit hereunder, and the
execution and delivery by the Borrower of the Notes (if any).

      "Debt to EBITDA Ratio" shall mean, in each case with respect to the
Borrower and its Consolidated Subsidiaries, at any date of determination, the
ratio of (a) the Funded Indebtedness to (b) the EBITDA for the twelve month
period preceding such date of determination. For the purposes of calculating the
Debt to EBITDA Ratio only, the Indebtedness outstanding under this Agreement as
of any date of determination shall be deemed to be the arithmetic mean (i.e.,
average) amount outstanding hereunder during the seven calendar days immediately
preceding such date of determination.

      "Default" shall mean any condition, act or event which, with notice or
lapse of time or both, would constitute an Event of Default.

      "Deferred Payment Obligations" shall mean the amount of the Borrower's (or
any of the Borrower's Subsidiaries') obligations to make payments to sellers of
either stock or assets pursuant to an Acceptable Acquisition, in periods
subsequent to the closing of such acquisition.

                                       8
<PAGE>
      "Deposit Accounts" shall mean each demand, time, savings, passbook and
other like accounts (including any account evidenced by a non-negotiable
certificate of deposit), whether interest-bearing or not, and if
interest-bearing then all interest accrued and paid or payable thereon,
maintained by the Debtor or any of its Subsidiaries (other than ACE Funding),
and all moneys from time to time in or credited to any and all such deposit
accounts, including all earnings or profits therefrom in the form of interest or
otherwise.

      "Dispute" shall have the meaning set forth in Section 9.14(a) hereof.

      "Dollars", "dollars" or the symbol "$" shall mean dollars in lawful
currency of the United States of America.

      "Domestic Lending Office" shall mean, with respect to any Lender, the
office of such Lender specified as its "Domestic Lending Office" opposite its
name in Schedule 2.02(a) annexed hereto, or such other office of such Lender as
such Lender may from time to time specify to the Borrower and the Agent.

      "EBITDA" shall mean, with respect to any Person for any period of
determination, the sum of (a) Net Income for such Person on a Consolidated
basis, plus (b) Interest Expense deducted in arriving at such Net Income, plus
(c) Federal, state and local income taxes deducted in arriving at such Net
Income, plus (d) depreciation, amortization and other non-cash charges deducted
in arriving at such Net Income as computed and calculated in accordance with
GAAP (excluding, however, any reserves or non-cash charges relating to, or in
respect of, Payday Loans or any other loan program administered by the Borrower
or its Subsidiaries), minus (e) extraordinary gains computed and calculated in
accordance with GAAP, plus (f) extraordinary losses computed and calculated in
accordance with GAAP.

      "Environmental Laws" means all laws, rules, regulations, codes,
ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by any Governmental Authority,
relating in any way to the environment, preservation or reclamation of natural
resources, the management, release or threatened release of any Hazardous
Material or to health and safety matters.

      "Environmental Legislation" shall have the meaning assigned to such term
in Section 5.12 hereof.

      "Environmental Liability" means any liability, contingent or otherwise
(including any liability for damages, costs of environmental remediation, fines,
penalties or indemnities), of the Borrower or any Subsidiary directly or
indirectly resulting from or based upon (a) violation of any Environmental Law,
(b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials,
(d) the release or threatened release of any Hazardous Materials into the
environment or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the
foregoing.

                                       9
<PAGE>
      "Equity Interest" of any Person shall mean any and all shares, interests,
rights to purchase, warrants, options, participations or other equivalents of or
interests in (however designated) equity of such Person, including any preferred
stock, but excluding any debt securities convertible into such equity, and
including, in the case of a partnership, partnership interests (whether general
or limited) and any other interest or participation that confers on a Person the
right to receive a share of the profits and losses of, or distributions of
assets of, such partnership.

      "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
amended, and the rules and regulations promulgated thereunder, as in effect from
time to time.

      "ERISA Affiliate" shall mean any trade or business (whether or not
incorporated) which would be treated together with the Borrower or any
Subsidiary of the Borrower, as a single employer under the provisions of Title I
or Title IV of ERISA.

      "Eurodollar Loan" shall mean any Revolving Credit Loan bearing interest at
an interest rate based upon the LIBO Rate.

      "Event of Default" shall have the meaning assigned to such term in Article
VII hereof.

      "Excluded Taxes" shall mean, with respect to the Agent, any Lender, the
Issuing Bank or any other recipient of any payment to be made by or on account
of any obligation of the Borrower hereunder, (a) income or franchise taxes
imposed on (or measured by) its net income by the United States of America, or
by the jurisdiction under the laws of which such recipient is organized or in
which its principal office is located or, in the case of any Lender, in which
its applicable lending office is located, (b) any branch profits taxes imposed
by the United States of America or any similar tax imposed by any other
jurisdiction in which the Borrower is located and (c) in the case of a Foreign
Lender, any withholding tax that is imposed on amounts payable to such Foreign
Lender at the time such Foreign Lender becomes a party to this Agreement (or
designates a new lending office) or is attributable to such Foreign Lender's
failure to comply with Section 2.12(e), except to the extent that such Foreign
Lender (or its assignor, if any) was entitled, at the time of designation of a
new lending office (or assignment), to receive additional amounts from the
Borrower with respect to such withholding tax pursuant to Section 2.12(a).

      "Existing Credit Agreement" shall have the meaning assigned to such term
in the Preliminary Statements hereof.

      "Existing Lender" shall have the meaning assigned to such term in the
Preliminary Statements hereof.

      "Eurodollar Lending Office" shall mean, with respect to any Lender, the
office of such Lender specified as its "Eurodollar Lending Office" opposite its
name in

                                       10
<PAGE>
Schedule 2.02(a) annexed hereto, or such other office of such Lender as such
Lender may from time to time specify to the Borrower and the Agent.

      "Eurodollar Loan" shall mean any Revolving Credit Loan bearing interest at
an interest rate based upon the LIBO Rate.

      "Federal Funds Effective Rate" shall mean, for any day, the weighted
average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such
transactions received by the Agent from three Federal funds brokers of
recognized standing selected by it.

      "Final Maturity Date" shall mean March 31, 2006.

      "Fiscal Year" shall mean the fiscal year of the Borrower and its
Subsidiaries for accounting purposes as designated by the Borrower to the Agent
from time to time.

      "Foreign Lender" shall mean any Lender that is organized under the laws of
a jurisdiction other than that in which the Borrower is located. For purposes of
this definition, the United States of America, each State thereof and the
District of Columbia shall be deemed to constitute a single jurisdiction.

      "Funded Indebtedness" shall mean and include, as of any date of
determination (without duplication) (a) all obligations of the Borrower and its
Consolidated Subsidiaries for borrowed money, including but not limited to the
Loans (and all other outstanding amounts under the Total Commitment), other bank
debt, the American Capital Notes, other senior notes, and subordinated debt, (b)
all obligations of the Borrower and its Consolidated Subsidiaries evidenced by
bonds, debentures, notes or similar instruments (excluding Deferred Payment
Obligations which are unsecured and in an amount not to exceed $2,000,000 in the
aggregate outstanding at any time), (c) all obligations of the Borrower and its
Consolidated Subsidiaries upon which interest charges are customarily paid, (d)
all contingent obligations of the Borrower and its Consolidated Subsidiaries,
(e) all Capitalized Lease Obligations of the Borrower and its Consolidated
Subsidiaries, and (f) the LC Exposure and all other outstanding letters of
credit issued for the account of the Borrower and its Consolidated Subsidiaries,
but shall exclude all amounts owed by ACE Funding and all current accounts
payable arising in the ordinary course of business.

      "GAAP" shall have the meaning assigned to such term in Section 1.02
hereof.

      "Global Assignment and Acceptance" shall mean the Global Assignment and
Acceptance to be executed by each Existing Lender and each Lender that is a
party hereto substantially in the form of Exhibit E attached hereto

      "Goleta" shall mean Goleta National Bank.

                                       11
<PAGE>
      "Goleta Agreement" shall mean that Master Loan Agency Agreement between
the Borrower and Goleta dated as of August 11, 1999, as in effect on the date
hereof.

      "Governmental Authority" shall mean the government of the United States of
America, any other nation or any political subdivision thereof, whether state or
local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.

      "Guarantee" of or by any Person (the "guarantor") shall mean any
obligation, contingent or otherwise, of the guarantor guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other obligation of any
other Person (the "primary obligor") in any manner, whether directly or
indirectly, and including any obligation of the guarantor, direct or indirect,
(a) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness or other obligation or to purchase (or to advance or
supply funds for the purchase of) any security for the payment thereof, (b) to
purchase or lease property, securities or services for the purpose of assuring
the owner of such Indebtedness or other obligation of the payment thereof, (c)
to maintain working capital, equity capital or any other financial statement
condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account party
in respect of any letter of credit or letter of guaranty issued to support such
Indebtedness or obligation; provided, that the term Guarantee shall not include
endorsements for collection or deposit in the ordinary course of business
(including, but not limited to, third-party bill payment receipts and
remittances, money-transfer services, or money-order sales).

      "Guarantor" shall mean, individually and collectively, each Person who
guaranties the Obligations, including, without limitation, each Subsidiary
(other than ACE Funding) of the Borrower which is or becomes a guarantor of the
Obligations on or after the date hereof.

      "Guaranty Agreement" shall mean the Unconditional Guaranty Agreement
executed by each Guarantor of even date herewith pursuant to which such
Guarantor guaranties the payment of the Obligations and the other therein
described obligations of the Borrower.

      "Hazardous Materials" means all explosive or radioactive substances or
wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos containing
materials, polychlorinated biphenyls, radon gas, infectious or medical wastes
and all other substances or wastes of any nature regulated pursuant to any
Environmental Law.

      "Hedging Contract" shall mean (a) any agreement providing for options,
swaps, floors, caps, collars, forward sales or forward purchases involving
interest rates, commodities or commodity prices, equities, currencies, bonds, or
indexes based on any of

                                       12
<PAGE>
the foregoing (b) any option, futures, or forwarded contract traded on an
exchange, and (c) any other derivative agreement or other similar agreement or
arrangement.

      "Incremental Facility" shall mean the aggregate Incremental Commitments of
a Person which are made available to the Borrower and become effective pursuant
to an Incremental Loan Amendment.

      "Incremental Loan Amendment", "Incremental Commitment", "Incremental
Loans", "Incremental Revolving Credit Loan" and "Incremental Seasonal Revolving
Credit Loan" shall have the meanings given to such terms in Section 2.15.

      "Indebtedness" of any Person, shall mean, without duplication, (a) all
obligations of such Person for borrowed money or with respect to deposits or
advances of any kind, (b) all obligations of such Person evidenced by bonds,
debentures, notes or similar instruments, (c) all obligations of such Person
upon which interest charges are customarily paid, (d) all obligations of such
Person under conditional sale or other title retention agreements relating to
property acquired by such Person, (e) all obligations of such Person in respect
of the deferred purchase price of property or services, (f) all Indebtedness of
others secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien on property owned or
acquired by such Person, whether or not the Indebtedness secured thereby has
been assumed, (g) all Guarantees by such Person of Indebtedness of others, (h)
all Capitalized Lease Obligations of such Person, (i) all obligations,
contingent or otherwise, of such Person as an account party in respect of
letters of credit and letters of guaranty, (j) all obligations of such Person in
respect of any Hedging Contract, and (k) all obligations, contingent or
otherwise, of such Person in respect of bankers' acceptances, but shall not
include accounts payable which are not aged more that 120 days from the billing
date therefor. The Indebtedness of any Person shall include, but without
duplication, the Indebtedness of any other entity (including any partnership in
which such Person is a general partner) to the extent such Person is liable
therefor as a result of such Person's ownership interest in or other
relationship with such entity, except to the extent the terms of such
Indebtedness provide that such Person is not liable therefor.

      "Indemnified Taxes" shall mean Taxes other than Excluded Taxes.

      "Indemnitees" shall have the meaning assigned to such term in Section
9.03(b) hereof.

      "Information" shall have the meaning assigned to such term in Section 9.12
hereof.

      "Intercreditor Agreement" shall mean that certain Intercreditor Agreement
dated as of the Closing Date by and among the Borrower, the Administrative
Agent, Travelers, and American Capital Agent, as the same may be amended,
restated or modified from time to time.

                                       13
<PAGE>
      "Interest Expense" shall mean, with respect to any Person for any period,
the interest expense of such Person during such period determined in accordance
with GAAP.

      "Interest Payment Date" shall mean (a) with respect to any Loan, the last
Business Day of each month commencing on the month following the Closing Date,
(b) with respect to any Revolving Credit Loan, the Revolving Credit Termination
Date, and (c) with respect to any Seasonal Revolving Credit Loan, the Seasonal
Revolving Credit Termination Date.

      "Interest Period" shall mean, (a) with respect to any Eurodollar Loan, the
period commencing on the date of such Eurodollar Loan and ending on the
numerically corresponding day in the calendar month that is one, two, three or
six months thereafter, as the Borrower may elect and (b) with respect to any
Reference Rate Loan, the period commencing on the date of such Reference Rate
Loan and ending on the numerically corresponding day in the calendar month that
is one month thereafter; provided, that (i) if any Interest Period would end on
a day other than a Business Day, such Interest Period shall be extended to the
next succeeding Business Day unless such next succeeding Business Day would fall
in the next calendar month, in which case such Interest Period shall end on the
next preceding Business Day and (ii) any Interest Period pertaining to a
Eurodollar Loan or Reference Rate Loan that commences on the last Business Day
of a calendar month (or on a day for which there is no numerically corresponding
day in the last calendar month of such Interest Period) shall end on the last
Business Day of the last calendar month of such Interest Period. For purposes
hereof, the date of a borrowing of any Eurodollar Loan or Reference Rate Loan
initially shall be the date on which such borrowing is made and thereafter such
date shall be the effective date of the most recent conversion or continuation
of such borrowing. In no event shall any Interest Period end after the Final
Maturity Date.

      "Investment" shall have the meaning assigned to such term in Section 6.17
hereof.

      "Issuing Bank" shall mean WFB, in its capacity as the issuer of Letters of
Credit hereunder, and its successors in such capacity as provided in Section
2.14(i). The Issuing Bank may, in its discretion, arrange for one or more
Letters of Credit to be issued by Affiliates of the Issuing Bank, in which case
the term "Issuing Bank" shall include any such Affiliate with respect to Letters
of Credit issued by such Affiliate.

      "JPMCB" shall have the meaning assigned to such term in the preamble to
this Agreement.

      "Key Management" shall mean shall mean Donald H. Neustadt, Jay B.
Shipowitz, Joe W. Conner and Barry M. Barron.

      "LC Disbursement" shall mean a payment made by the Issuing Bank to the
beneficiary of, and pursuant to, a Letter of Credit.

                                       14
<PAGE>
      "LC Exposure" shall mean, at any time, the sum of (a) the aggregate
undrawn amount of all outstanding Letters of Credit at such time plus (b) the
aggregate amount of all LC Disbursements that have not yet been reimbursed by or
on behalf of the Borrower at such time. The LC Exposure of any Lender at any
time shall be its Applicable Percentage of the total LC Exposure at such time.

      "Lender Control Agreement" shall mean any Letter Agreement in the form of
Exhibit F-1 or F-2 hereto or any other written agreement or other authenticated
record, whether executed prior to, on, or after the date hereof, pursuant to
which any Lender agrees to follow the instructions of the Administrative Agent,
the American Capital Agent, or Travelers with respect to any Deposit Account
maintained by such Lender without the further consent of the Borrower.

      "Lenders" shall have the meaning assigned to such term in the preamble to
this Agreement.

      "Letter Agreement" shall mean the letter agreements substantially in the
forms of Exhibits F-1, F-2, and G attached hereto (or any other similar
agreements in form and substance satisfactory to Agent in its sole discretion).

      "Letter of Credit" shall mean any letter of credit issued pursuant to this
Agreement.

      "LIBO Rate" shall mean, for any Interest Period, the rate appearing on
Page 3750 of the Dow Jones Market Service (or on any successor or substitute
page of such Service, or any successor to or substitute for such Service,
providing rate quotations comparable to those currently provided on such page of
such Service, as determined by the Agent from time to time for purposes of
providing quotations of interest rates applicable to dollar deposits in the
London interbank market) at approximately 11:00 a.m., London time, two Business
Days prior to the commencement of such Interest Period, as the rate for dollar
deposits with a maturity comparable to such Interest Period. In the event that
such rate is not available at such time for any reason, then the "LIBO Rate" for
such Interest Period shall be the rate at which dollar deposits of $5,000,000
and for a maturity comparable to such Interest Period are offered by the
principal London office of the Agent in immediately available funds in the
London interbank market at approximately 11:00 a.m., London time, two Business
Days prior to the commencement of such Interest Period.

      "Lien" shall mean, with respect to any asset, (a) any mortgage, deed of
trust, lien, pledge, hypothecation, encumbrance, charge or security interest in
or on such asset, (b) the interest of a vendor or a lessor under any conditional
sale agreement, Capitalized Lease or other title retention agreement relating to
such asset (or any financing having substantially the same economic effect as
any of the foregoing), (c) in the case of securities, any purchase option, call
or similar right of a third party with respect to such securities or (d) any
other right of or arrangement with any creditor to have such creditor's claim
satisfied out of such assets, or the proceeds therefrom, prior to the general
creditors of the owner thereof.

                                       15
<PAGE>
      "Liquid Investments" shall mean:

            (a) direct obligations of, or obligations the principal of and
      interest on which are unconditionally guaranteed by, the United States of
      America (or by any agency thereof to the extent such obligations are
      backed by the full faith and credit of the United States of America), in
      each case maturing within one year from the date of acquisition thereof;

            (b) investments in commercial paper maturing within 270 days from
      the date of acquisition thereof and having, at such date of acquisition,
      the highest credit rating obtainable from S&P or from Moody's;

            (c) investments in deposit accounts, certificates of deposit,
      banker's acceptances and time deposits maturing within 180 days from the
      date of acquisition thereof issued or guaranteed by or placed with, and
      money market deposit accounts issued or offered by, any domestic office of
      any commercial bank organized under the laws of the United States of
      America or any State thereof which has a combined capital and surplus and
      undivided profits of not less than $500,000,000 or any Lender;

            (d) fully collateralized repurchase agreements with a term of not
      more than 30 days for securities described in clause (a) above and entered
      into with a financial institution satisfying the criteria described in
      clause (c) above or any Lender; and

            (e) money market funds that (i) comply with the criteria set forth
      in Securities and Exchange Commission Rule 2a-7 under the Investment
      Company Act of 1940, (ii) are rated AAA by S&P and Aaa by Moody's and
      (iii) have portfolio assets of at least $5,000,000,000.

      "Loan" shall mean each advance under the Total Commitment to the Borrower
made pursuant to this Agreement, whether as a Reference Rate Loan, an ABR Loan,
or Eurodollar Loan.

      "Loan and Servicing Agreement" shall mean that certain agreement between
and among Borrower, ACE Funding and ACE Funding Lender dated as of December 18,
2002, as in effect on the date hereof.

      "Margin Stock" shall have the meaning assigned to such term in Regulation
U.

      "Material Adverse Effect" shall mean (a) a material adverse effect upon
the Collateral or the business, assets, liabilities, operations, condition
(financial or otherwise) or prospects of (i) the Borrower or (ii) the Borrower
and its Subsidiaries taken as a whole or (b) the impairment of the ability of
Borrower or any of its Subsidiaries (other than ACE Funding) to perform any of
its respective obligations under this Agreement or any other Credit Document on
a timely basis or an impairment of the validity or enforceability of the rights
and benefits available to, or the Liens granted by the Borrower and its

                                       16
<PAGE>
Subsidiaries (other than ACE Funding) in favor of, the Agent, the Lenders, or
the Collateral Agent (under the Credit Documents or otherwise). In determining
whether any individual event would result in a Material Adverse Effect,
notwithstanding that such event does not of itself have such effect, a Material
Adverse Effect shall be deemed to have occurred if the cumulative effect of such
event and all other then existing events would result in a Material Adverse
Effect.

      "Money Order Agreement" shall mean that certain money order agreement
between the Borrower and Travelers, dated April 16, 1998, as amended,
supplemented or restated from time to time in accordance herewith.

      "Multiemployer Plan" shall mean a "multiemployer plan" as defined in
Section 4001(a)(3) of ERISA.

      "Net Income" shall mean, with respect to any Person for any period, the
aggregate income (or loss) of such Person for such period which shall be an
amount equal to (a) net revenues and other items of income for such Person less
(b) the aggregate for such Person of any and all items that are treated as
expenses under GAAP, less (c) Federal, state and local income taxes, but
excluding any extraordinary gains or losses or any gains or losses from the sale
or disposition of assets other than in the ordinary course of business, all
computed and calculated in accordance with GAAP.

      "Net Worth" shall mean, with respect to any Person at any date of
determination, the sum of (a) the total amount of capital stock, including
preferred stock, of such Person, plus (b) the paid-in-capital of such Person,
plus (c) the retained earnings of such Person, minus (d) the treasury stock of
such Person, all calculated in accordance with GAAP.

      "Notes" shall mean, collectively, the Revolving Credit Notes and the
Seasonal Revolving Credit Notes of the Borrower, executed and delivered as
provided in Section 2.04 hereof.

      "Obligations" shall mean all obligations, liabilities and indebtedness of
each of the Borrower and its Subsidiaries (other than ACE Funding) to the
Lenders or their Affiliates and the Agent arising under or in connection with
this Agreement or any other document or instrument executed in connection
herewith (including without limitation the other Credit Documents), and all
obligations, liabilities and indemnities of the Borrower and such Subsidiaries
under or in respect of any Hedging Contract entered into by Borrower or any of
such Subsidiaries with any Lender or any Affiliate of any Lender, whether now
existing or hereafter created, direct or indirect, matured or unmatured,
liquidated or unliquidated, primary or secondary, due or not, including without
limitation all of their respective obligations, liabilities and indebtedness
with respect to the principal of and interest on the Loans (including but not
limited to interest accruing after the filing of any petition in bankruptcy, or
the commencement of any insolvency, reorganization, or like proceeding relating
to the Borrower or any of such Subsidiaries, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding), drawings
under any Letter of Credit, and the payment or performance of all other
obligations, liabilities, and

                                       17
<PAGE>
indebtedness owed by any of them to the Lenders or their Affiliates and the
Agent hereunder or under any one or more documents or instruments executed and
delivered in connection herewith (including without limitation the other Credit
Documents) or with any Letter of Credit or Hedging Contract entered into by
Borrower or any of such Subsidiaries with any Lender or any Affiliate of any
Lender, including without limitation all fees, costs, expenses and indemnity
obligations hereunder and thereunder.

      "Other Financial Institutions" shall mean any financial institution other
than WFB.

      "Other Taxes" shall mean any and all present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies arising from any payment made hereunder or from the execution, delivery
or enforcement of, or otherwise with respect to, this Agreement.

      "Payday Loans" shall mean small, short-term, retail loans provided by the
Borrower and its Consolidated Subsidiaries (other than ACE Funding) which
consist of providing a consumer cash in exchange for the consumer's pay check
(endorsed to the order of the Borrower) or an ACH authorization to debit a
consumer's bank account, along with an agreement to defer the presentment or
deposit of such check, or the initiation of the applicable ACH debit on such
consumer's bank account, as the case may be, until the consumer's next payday.

      "Payment Blockage Notice" shall have the meaning given to such term in the
Intercreditor Agreement.

      "PBGC" shall mean the Pension Benefit Guaranty Corporation.

      "Pension Plan" shall mean any Plan which is subject to the provisions of
Title IV of ERISA (other than any Multiemployer Plan).

      "Permitted Liens" shall have the meaning given to such term in Section
6.01.

      "Person" shall mean any natural Person, corporation, business trust,
association, company, joint venture, partnership or government or any agency or
political subdivision thereof.

      "Plan" shall mean any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or
any ERISA Affiliate is (or, if such plan were terminated, would under Section
4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of
ERISA.

      "Preferred Stock", as applied to the Equity Interests of any Person, shall
mean Equity Interests of any class or classes (however designated) that are
preferred as to the payment of dividends or distributions, or as to the
distribution of assets upon any voluntary or involuntary liquidation or
dissolution of such Person, over Equity Interests of any other class of such
Person.

                                       18
<PAGE>
      "Pricing Grid" shall mean the pricing grid containing the Applicable
Margin to be added to the Adjusted LIBO Rate, in the case of Eurodollar Loans or
Reference Rate Loans, and Alternate Base Rate, in the case of ABR Loans, set
forth in Schedule 1 hereto.

      "Prime Rate" shall mean the rate of interest per annum publicly announced
from time to time by WFB as its prime rate in effect at its principal office in
San Francisco; each change in the Prime Rate shall be effective from and
including the date such change is publicly announced as being effective.

      "Reference Rate" shall mean the Adjusted LIBO Rate applicable to an
Interest Period of one (1) month. The Reference Rate shall be reset on each
Business Day.

      "Reference Rate Loan" shall mean any Revolving Credit Loan bearing
interest at an interest rate based upon the Reference Rate.

      "Register" shall have the meaning assigned to such term in Section
9.04(b)(iv) hereof.

      "Regulation D" shall mean Regulation D of the Board, as the same is from
time to time in effect, and all official rulings and interpretations thereunder
or thereof.

      "Regulation T" shall mean Regulation T of the Board, as the same is from
time to time in effect, and all official rulings and interpretations thereunder
or thereof.

      "Regulation U" shall mean Regulation U of the Board, as the same is from
time to time in effect, and all official rulings and interpretations thereunder
or thereof.

      "Regulation X" shall mean Regulation X of the Board, as the same is from
time to time in effect, and all official rulings and interpretations thereunder
or thereof.

      "Related Parties" shall mean, with respect to any specified Person, such
Person's Affiliates and the respective directors, officers, employees, agents
and advisors of such Person and such Person's Affiliates.

      "Remedial Work" shall have the meaning assigned to such term in Section
5.12(b) hereof.

      "Reportable Event" shall mean a Reportable Event as defined in Section
4043(c) of ERISA.

      "Required Lenders" shall mean at any time (a) two (2) or more Lenders
holding at least sixty six and two thirds percent (66 2/3%) of the then
aggregate unpaid principal amount of the Loans or (b) if no such principal
amount is then outstanding, two (2) or more Lenders having at least sixty six
and two thirds percent (66 2/3%) of the Total Commitment.

                                       19
<PAGE>
      "Responsible Officer" shall mean, with respect to any Person other than
the Borrower, such Person's president, chairman, senior vice president, vice
president, chief financial officer or treasurer and shall mean with respect to
the Borrower, its chief executive officer, its president, its chief financial
officer, its senior vice president-operations, and its controller.

      "Restated EBITDA" shall mean, with respect to any Person, such Person's
actual EBITDA restated to substitute, in lieu of actual expenses deducted in
determining such actual EBITDA, expenses that are, in the judgment of Agent and
Borrower, contractually controllable by Borrower (e.g., officer or employee
compensation, bank and/or depository fees, courier fees and other similar
expense items).

      "Revolving Credit Commitment" shall mean, with respect to any Lender, the
Revolving Credit Commitment of such Lender as set forth in Part I of Schedule
2.01(a) annexed hereto or, after the effectiveness of an Incremental Loan
Amendment, as set forth in Part II of Schedule 2.01(a) annexed hereto, as the
same may be terminated or reduced from time to time in accordance with the
provisions of this Agreement.

      "Revolving Credit Loan" shall mean advances under the Revolving Credit
Commitment to the Borrower made pursuant to this Agreement.

      "Revolving Credit Notes" shall mean the Revolving Credit Notes of the
Borrower, executed and delivered as provided in Section 2.04 hereof, in
substantially the form of Exhibit A annexed hereto, as amended, modified,
supplemented or extended from time to time.

      "Revolving Credit Termination Date" shall mean the earlier of (a) Final
Maturity Date or (b) such date as the Revolving Credit Loans shall otherwise be
payable in full and the Revolving Credit Commitment shall terminate, expire or
be canceled in accordance with the terms of this Agreement.

      "Seasonal Revolving Credit Availability Period" shall mean any of the
following periods: (a) December 1, 2003 until and including March 15, 2004, (b)
December 1, 2004 until and including March 15, 2005, and (c) December 1, 2005
until and including March 15, 2006.

      "Seasonal Revolving Credit Commitment" shall mean, with respect to any
Seasonal Revolving Credit Lender, the Seasonal Revolving Credit Commitment of
such Lender as set forth in Part I of Schedule 2.01(b) annexed hereto or, after
the effectiveness of an Incremental Loan Amendment, as set forth in Part II of
Schedule 2.01(b) annexed hereto, as the same may be terminated or reduced from
time to time in accordance with the provisions of this Agreement.

      "Seasonal Revolving Credit Lender" shall mean any Lender that makes
Seasonal Revolving Credit Loans pursuant to this Agreement.

                                       20
<PAGE>
      "Seasonal Revolving Credit Loan" shall mean advances under the Seasonal
Revolving Credit Commitment to the Borrower made pursuant to this Agreement.

      "Seasonal Revolving Credit Notes" shall mean the Seasonal Revolving Credit
Notes of the Borrower, executed and delivered as provided in Section 2.04
hereof, in substantially the form of Exhibit B annexed hereto, as amended,
modified, supplemented or extended from time to time.

      "Seasonal Revolving Credit Termination Date" shall mean the earlier of (a)
March 15, 2006 or (b) such date as the Seasonal Revolving Credit Loans shall
otherwise be payable in full and the Seasonal Revolving Credit Commitment shall
terminate, expire or be canceled in accordance with the terms of this Agreement.

      "Security Agreement" shall mean individually and collectively the
Assignments of Deposit Accounts and Security Agreements by the Borrower and
certain of its Subsidiaries other than ACE Funding of even date herewith, as
from time to time amended, supplemented, restated or otherwise modified,
securing the Obligations and the other therein described obligations of the
Borrower and its Subsidiaries other than ACE Funding.

      "Security Documents" shall mean individually and collectively, the
Security Agreement, the Stock Pledge Agreements executed by the Borrower and
certain of its Subsidiaries other than ACE Funding of even date herewith, the
Guaranty Agreement, all other assignments, deeds, pledges, financing statements
and other documents executed or delivered to any Lender in connection with
granting of a Lien in the Collateral in favor of Administrative Agent or the
Collateral Agent, and all amendments, modifications, supplements, renewals,
extensions, increases, rearrangements of, and substitutions for the foregoing.

      "Senior Secured Notes" shall mean those certain 9.03% Senior Secured Notes
due November 15, 2003 by the Borrower payable to Principal Mutual Life Insurance
Company in the aggregate principal amount of twenty million dollars
($20,000,000).

      "Statutory Reserve Rate" shall mean a fraction (expressed as a decimal),
the numerator of which is the number one and the denominator of which is the
number one minus the aggregate of the maximum reserve percentages (including any
marginal, special, emergency or supplemental reserves) expressed as a decimal
established by the Board to which the Agent is subject (a) with respect to the
Base CD Rate, for new negotiable nonpersonal time deposits in dollars of over
$100,000 with maturities approximately equal to three months and (b) with
respect to the Adjusted LIBO Rate, for eurocurrency funding (currently referred
to as "Eurocurrency Liabilities" in Regulation D). Such reserve percentages
shall include those imposed pursuant to such Regulation D. Eurodollar Loans and
Reference Rate Loans shall be deemed to constitute eurocurrency funding and to
be subject to such reserve requirements without benefit of or credit for
proration, exemptions or offsets that may be available from time to time to any
Lender under such Regulation D or any comparable regulation. The Statutory
Reserve

                                       21
<PAGE>
Rate shall be adjusted automatically on and as of the effective date of any
change in any reserve percentage.

      "Subsidiary" shall mean, with respect to any Person, any corporation,
association or other business entity in which said Person or one or more
Subsidiaries of said Person owns or controls, directly or indirectly, securities
or other ownership interests representing more than fifty percent (50%) of the
ordinary voting power. As used in this Agreement with respect to the Borrower,
the term "Subsidiary" shall include all direct and indirect Subsidiaries of the
Borrower.

      "Subsidiary's Cash Holdings" shall mean, with respect to a Subsidiary of
the Borrower, other than ACE Funding, such Subsidiary's cash in such
Subsidiary's stores, plus such Subsidiary's cash in such Subsidiary's depository
accounts with JPMCB, plus such Subsidiary's cash in such Subsidiary's depository
accounts with Other Financial Institutions, plus the amount of items of such
Subsidiary in clearing at JPMCB and at Other Financial Institutions, plus cash
of such Subsidiary in transit with armored couriers.

      "Taxes" shall mean any and all present or future taxes, levies, imposts,
duties, deductions, charges, or withholdings imposed by any Governmental
Authority.

      "Third-Party Payables" shall mean all contractual obligations owing to
third parties in respect of cash and checks received by the Borrower or a
Guarantor for the purchase of lottery tickets, the payment of any type of bill
on behalf of a customer, or the payment for any service rendered by the Borrower
or any Guarantor on behalf of a third party for which funds are to be remitted
to a third party, and all sums (to the extent the same are not subject to the
Intercreditor Agreement) which are owed to Travelers under the Money Order
Agreement.

      "Three-Month Secondary CD Rate" shall mean, for any day, the secondary
market rate for three-month certificates of deposit reported as being in effect
on such day (or, if such day is not a Business Day, the next preceding Business
Day) by the Board through the public information telephone line of the Federal
Reserve Bank of New York (which rate will, under the current practices of the
Board, be published in Federal Reserve Statistical Release H.15(519) during the
week following such day) or, if such rate is not so reported on such day or such
next preceding Business Day, the average of the secondary market quotations for
three-month certificates of deposit of major money center banks in New York City
received at approximately 9:00 a.m., Dallas, Texas time, on such day (or, if
such day is not a Business Day, on the next preceding Business Day) by the Agent
from three negotiable certificate of deposit dealers of recognized standing
selected by it.

      "Total Commitment" shall mean the sum of the Lenders' Total Revolving
Credit Commitments and Total Seasonal Revolving Credit Commitments, as the same
may be terminated or reduced from time to time in accordance with the provisions
of this Agreement.

                                       22
<PAGE>
      "Total Revolving Credit Commitment" shall mean the sum of the Lenders'
Revolving Credit Commitments, as the same may be terminated or reduced from time
to time in accordance with the provisions of this Agreement.

      "Total Seasonal Revolving Credit Commitment" shall mean the sum of the
Lenders' Seasonal Revolving Credit Commitments, as the same may be terminated or
reduced from time to time in accordance with the provisions of this Agreement.

      "Travelers" shall mean Travelers Express Company, Inc.

      "Travelers Documents" shall mean the Travelers Primary Agreements and all
agreements, certificates and instruments executed and/or delivered in connection
therewith.

      "Travelers Event of Default" shall mean the occurrence of an event or
condition (after giving effect to any applicable notice and cure provisions)
that permits Travelers to terminate the Money Order Agreement under Section 18.b
thereof because of default by Borrower thereunder.

      "Travelers Primary Agreements" shall mean the Money Order Agreement, that
certain Money Transfer Agreement dated June 30, 2000, by and between the
Borrower and Travelers, as amended, supplemented, restated or otherwise modified
through and including the Closing Date, and that certain Bill Payment Processing
and Funds Transfer Services Agreement dated April 1, 1998, by and between
Travelers and the Borrower, as amended, supplemented, restated or otherwise
modified through and including the Closing Date.

      "Type" shall refer to whether a Loan is an ABR Loan, Reference Rate Loan,
or Eurodollar Loan, each of which constitutes a Type of Loan.

      "Unrestricted Indebtedness" shall mean Indebtedness (i) as to which
neither the Borrower nor any of its Subsidiaries other than ACE Funding is
directly or primarily liable (by virtue of the Borrower or one of its other
Subsidiaries being the primary obligor on, guarantor of, or otherwise liable
with respect to, such Indebtedness), and (ii) which, upon the occurrence of a
default with respect thereto, does not result in, or permit any holder of any
Indebtedness of the Borrower or any of its Subsidiaries (other than ACE Funding)
to declare a default on such Indebtedness or cause the payment thereof to be
accelerated or payable prior to its stated maturity.

      "Usage Period" shall mean the period from January 7 (or the preceding
Business Day if January 7 is not a Business Day) through April 30 (or the next
Business Day if April 30 is not a Business Day) of each calendar year.

      "WFB" shall have the meaning assigned to such term in the preamble to this
Agreement.

                                       23
<PAGE>
      SECTION 1.02. Accounting Terms; Financial Covenants. Unless otherwise
expressly provided herein, each accounting term used herein shall have the
meaning given it under generally accepted accounting principles in effect from
time to time in the United States applied on a basis consistent with those used
in preparing the financial statements referred to in Section 5.05 hereof
("GAAP"). If subsequent to the date hereof, the accounting principles under GAAP
are changed and as a result of such change the calculation of any financial
covenant set forth herein is affected, the Lenders and the Borrower hereby agree
to amend such financial covenants in such a manner as to make such financial
covenants consistent with the financial covenants in effect hereunder prior to
such change in accounting principles and, until such amendment is effected, such
financial covenants shall be calculated from financial statements of the
Borrower adjusted to reflect the accounting principles followed by the Borrower
prior to such change in accounting principles. Notwithstanding anything to the
contrary contained in Sections 6.07, 6.08, 6.09, and 6.10, the financial
covenants contained in such sections shall be calculated in each case on a
Consolidated basis with respect to the Borrower and its Subsidiaries but
excluding the financial results of ACE Funding; provided, however, that such
calculations shall include (a) dividends or other distributions paid by ACE
Funding to the Borrower in respect of Equity Interests issued by ACE Funding and
owned by the Borrower, (b) all payments made by ACE Funding to the Borrower on
loans or other advances made to ACE Funding by the Borrower, and (c) for balance
sheet purposes, amounts invested in or loaned to ACE Funding by Borrower.

      SECTION 1.03. Miscellaneous. The words "hereof", "herein" and "hereunder"
and words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement, and
Article, Section, Schedule and Exhibit references are to Articles and Sections
of and Schedules and Exhibits to this Agreement, unless otherwise specified.

                              ARTICLE II. THE LOANS

      SECTION 2.01. The Total Commitments.

      (a) The Existing Lenders made Revolving Credit Loans (as defined in the
Existing Credit Agreement) to Borrower under the Existing Credit Agreement and,
as of the Closing Date, $84,000,000.00 aggregate principal amount of such
Revolving Credit Loans are outstanding. The Existing Lenders made Seasonal
Revolving Credit Loans (as defined in the Existing Credit Agreement) to Borrower
under the Existing Credit Agreement and, as of the Closing Date, $0.00 aggregate
principal amount of such Seasonal Revolving Credit Loans are outstanding. There
are no letters of credit outstanding under and subject to the Existing Credit
Agreement. From the respective dates of such Revolving Credit Loans and issuance
of such letters of credit to the Closing Date, the Existing Lenders shall
participate therein and be entitled to all interest, fees and other amounts
payable in respect thereof as provided in the Existing Credit Agreement.
Immediately prior to the effectiveness of the amendment and restatement of the
Existing Credit Agreement effected hereby, the Existing Lenders entered into a
Global Assignment and Acceptance, pursuant to which the assignees thereunder
(which assignees are the

                                       24
<PAGE>
Lenders hereunder) purchased and assumed all of the rights, titles, interests
and obligations under the Existing Credit Agreement from the assignors
thereunder in respect of, and all commitments relating to, the foregoing
described Revolving Credit Loans and Seasonal Revolving Credit Loans. From and
after the Closing Date, each Lender shall have an undivided interest and
participation in the foregoing described letters of credit in accordance with
Section 2.14 hereof. On the Closing Date, all Interest Periods under and as
defined in the Existing Credit Agreement in respect of any Eurodollar Loans
under and as defined in the Existing Credit Agreement shall automatically be
terminated (and the Borrower shall on the Closing Date make payments to the
Existing Lenders that held such Eurodollar Loans under Section 2.09 and Section
2.12 of the Existing Credit Agreement to compensate for such termination as if
such termination were a payment or prepayment referred to in said Sections 2.09
and 2.12), and subject to the other restrictions contained herein, the Borrower
shall be permitted to continue such Eurodollar Loans or to convert such
Eurodollar Loans into Reference Rate Loans or ABR Loans hereunder.

      (b) The Agent shall notify each Lender of the amount of Loans required to
be made by such Lender (if any) to the Borrower on the Closing Date, such that
after giving effect to the transactions contemplated to occur on the Closing
Date, each Lender's Revolving Credit Commitment and Seasonal Revolving Credit
Commitment shall be in accordance with the Revolving Credit Commitment and
Seasonal Revolving Credit Commitment set forth opposite its name on Schedule
2.01(a) and Schedule 2.01(b). Each Lender's Loans to the Borrower shall not
exceed its pro rata portion of all Loans then outstanding to the Borrower, and
the unused Total Commitments of all Lenders plus all outstanding Revolving
Credit Loans and Seasonal Revolving Credit Loans, in each case under and as
defined in the Existing Credit Agreement, as amended hereby, shall not exceed
the Total Commitment. Each Lender hereby agrees to give effect to the
instructions of the Agent to such Lender contained in the notice described
above.

      (c) Subject to the terms and conditions and relying upon the
representations and warranties herein set forth, each Lender, severally and not
jointly, agrees to make Revolving Credit Loans to the Borrower, at any time and
from time to time, the Borrower having the right to borrow, repay and reborrow,
from the Closing Date to the Revolving Credit Termination Date, in an aggregate
principal amount at any time outstanding not to exceed the amount of such
Lender's Revolving Credit Commitment set forth opposite its name in Schedule
2.01(a) hereto. Notwithstanding the foregoing, the Borrower hereby agrees that
the Borrower shall not permit on any date the sum of (i) the aggregate principal
amount of all Loans outstanding plus (ii) the aggregate amount of the LC
Exposure, to exceed the amount of the Borrowing Base on such date.

      (d) Subject to the terms and conditions and relying upon the
representations and warranties herein set forth, each Seasonal Revolving Credit
Lender, severally and not jointly, agrees to make Seasonal Revolving Credit
Loans to the Borrower, at any time and from time to time during each Seasonal
Revolving Credit Availability Period, the Borrower having the right to borrow,
repay and reborrow, from the Closing Date to the Seasonal Revolving Credit
Termination Date, in an aggregate principal amount at any time outstanding not
to exceed the amount of such Lender's Seasonal Revolving Credit

                                       25
<PAGE>
Commitment set forth opposite its name in Schedule 2.01(b) hereto. The Seasonal
Revolving Credit Loans shall be subject to the Borrowing Base and shall not be
requested by the Borrower if any such Seasonal Revolving Credit Loan would cause
the aggregate principal amount of the Seasonal Revolving Credit Loans, plus the
aggregate principal amount all Revolving Credit Loans, plus the amount of the LC
Exposure to exceed the amount of the Borrowing Base on such date. The Seasonal
Revolving Credit Loans shall be made on, and subject to, the same terms and
conditions as the Revolving Credit Loans, and the Seasonal Revolving Credit
Commitments shall be subject to reduction or termination upon the same terms and
conditions as the Revolving Credit Commitments, in each case to the extent not
expressly provided otherwise in this Agreement.

      SECTION 2.02. Loans.

      (a) Each ABR Loan and each Reference Rate Loan made by the Lenders on any
date shall not be less than one million dollars ($1,000,000) and in integral
multiples of one hundred thousand dollars ($100,000). Each Eurodollar Loan made
by the Lenders on any date shall not be less than three million dollars
($3,000,000) and in integral multiples of five hundred thousand dollars
($500,000).

      (b) Revolving Credit Loans and Seasonal Revolving Credit Loans shall be
made ratably by the Lenders in accordance with their respective Revolving Credit
Commitments and Seasonal Revolving Credit Commitments; provided, however, that
the failure of any Lender to make any Loan shall not in itself relieve any other
Lender of its obligation to lend hereunder.

      (c) Each Loan shall be either an ABR Loan, Reference Rate Loan or a
Eurodollar Loan as the Borrower may request in accordance with the provisions of
this Agreement. Each Lender may fulfill its obligations under this Agreement by
causing its Applicable Lending Office to make such Loan. Not more than seven (7)
Eurodollar Loans may be outstanding at any one time.

      (d) The Borrower shall have the right at any time upon prior irrevocable
written or facsimile notice (promptly confirmed in writing) to the Agent given
in the manner and at the times specified in Section 2.03 hereof with respect to
the Loans into which conversion or continuation is to be made, to convert all or
any portion of Revolving Credit Loans that are Eurodollar Loans or Reference
Rate Loans into ABR Loans, to convert all or any portion of ABR Loans or
Reference Rate Loans into Eurodollar Loans (specifying the Interest Period to be
applicable thereto), to convert the Interest Period with respect to all or any
portion of any Eurodollar Loans to another permissible Interest Period, and to
continue all or any portion of any Loans into a subsequent Interest Period of
the same duration, subject to (x) the terms and conditions of this Agreement
(including with respect to the conversion of ABR Loans into Eurodollar Loans or
Reference Rate Loans, the last sentence of Section 2.02(c) hereof) and (y) the
following:

                                       26
<PAGE>
            (i) in the case of a conversion or continuation of fewer than all
      the Loans made to the Borrower, the aggregate principal amount of Loans
      converted or continued shall be an integral multiple of one million
      dollars ($1,000,000);

            (ii) accrued interest on a Loan (or portion thereof) being converted
      or continued shall be paid by the Borrower at the time of conversion or
      continuation (but only with respect to the portion thereof being so
      converted or continued);

            (iii) if any Eurodollar Loan is converted at any time other than the
      end of an Interest Period applicable thereto, the Borrower shall make such
      payments associated therewith as are required pursuant to Section 2.11
      hereof,

            (iv) the representations and warranties set forth in Article III
      hereof and in any documents delivered in connection herewith shall be true
      and correct in all material respects with the same effect as though made
      on and as of such date (except insofar as such representations and
      warranties relate expressly to an earlier date); and

            (v) no Default or Event of Default shall have occurred and be
      continuing.

      The Interest Period applicable to any Eurodollar Loan resulting from a
conversion shall be specified by the Borrower in the irrevocable notice of
conversion delivered pursuant to this Section 2.02; provided, however, that if
no such Interest Period shall be specified, the Borrower shall be deemed to have
selected an Interest Period of one (1) month's duration. If the Borrower shall
not have given timely notice to continue any Eurodollar Loan into a subsequent
Interest Period (and shall not otherwise have given notice to convert such
Loan), such Loan (unless repaid or required to be repaid pursuant to the terms
hereof) shall automatically be converted into a Reference Rate Loan. The Agent
shall promptly advise the Lenders of any notice given pursuant to this Section
2.02 and of each Lender's portion of the continuation or conversion hereunder.

      SECTION 2.03. Notice of Revolving Credit Loans and Seasonal Revolving
Credit Loans; Funding of Loans.

      (a) The Borrower shall give the Agent irrevocable written or facsimile
notice (promptly confirmed in writing) of each borrowing to be made by the
Borrower (including, without limitation, a conversion as permitted by Section
2.02(d) hereof) not later than (i) 10:00 a.m., Dallas, Texas time, the third
Business Day before a proposed Revolving Credit Loan consisting of a Eurodollar
Loan borrowing or any Eurodollar Loan conversion and (ii) 10:00 a.m., Dallas,
Texas time, the Business Day of a proposed Revolving Credit Loan or Seasonal
Revolving Credit Loan consisting of an ABR Loan borrowing or Reference Rate Loan
Borrowing or any ABR Loan conversion or Reference Rate Loan conversion;
provided, that any such notice of a proposed ABR Loan borrowing to finance
reimbursement of an LC Disbursement as contemplated by Section 2.14(e) may not
be given later than 10:00 a.m. Dallas, Texas time on the date of the proposed

                                       27
<PAGE>
borrowing. Such notice shall be in substantially the form of Exhibit D hereto
(the "Borrowing Notice") and shall (i) state whether the Loans then being
requested are to be Revolving Credit Loans or Seasonal Revolving Credit Loans,
(ii) in the case of Revolving Credit Loans, specify whether the Revolving Credit
Loans then being requested are to be ABR Loans, Reference Rate Loans, or
Eurodollar Loans (specifying the Interest Period to be applicable thereto),
(iii) specify the date of such borrowing (which shall be a Business Day) and
amount thereof, (iv) state that the representations and warranties set forth in
Article III hereof and in any documents delivered in connection herewith shall
be true and correct in all material respects with the same effect as though made
on and as of such date (except insofar as such representations and warranties
relate expressly to an earlier date), (v) state that no Default or Event of
Default has occurred and is continuing or would otherwise be created by such
borrowing and (vi) state that the proceeds of such Loans will be used only to
fund Borrower's working capital requirements in the ordinary course of its
business. If no election as to the Type of Loan is specified in any such notice,
all such Loans shall be ABR Loans. Notwithstanding anything contained in this
Agreement to the contrary, (i) Revolving Credit Loans shall only be, and shall
only be convertible into, ABR Loans, Reference Rate Loans, or Eurodollar Loans
and (ii) Seasonal Revolving Credit Loans shall only be, and shall only be
convertible into, ABR Loans. The Agent shall promptly advise the Lenders of any
notice given pursuant to this Section 2.03 and of each Lender's portion of the
requested borrowing.

      (b) Each Lender shall make each Loan to be made by it hereunder on the
proposed date thereof by wire transfer of immediately available funds by 11:00
a.m., Dallas, Texas time, to the account of the Agent most recently designated
by it for such purpose by notice to the Lenders. The Agent will make such Loans
available to the Borrower by promptly crediting the amounts so received, in like
funds, to an account of the Borrower maintained with the Agent and designated by
the Borrower in the applicable Borrowing Notice; provided that ABR Loans made to
finance the reimbursement of an LC Disbursement as provided herein shall be
remitted by the Agent to the Issuing Bank.

      (c) Unless the Agent shall have received notice from a Lender prior to the
proposed date of any Loan that such Lender will not make available to the Agent
such Lender's share of such Loan, the Agent may assume that such Lender has made
such share available on such date in accordance with paragraph (b) of this
Section and may, in reliance upon such assumption, make available to the
Borrower a corresponding amount. In such event, if a Lender has not in fact made
its share of the applicable Loan available to the Agent, then the applicable
Lender and the Borrower severally agree to pay to the Agent forthwith on demand
such corresponding amount with interest thereon, for each day from and including
the date such amount is made available to the Borrower to but excluding the date
of payment to the Agent, at (i) in the case of such Lender, the greater of the
Federal Funds Effective Rate and a rate determined by the Agent in accordance
with banking industry rules on interbank compensation or (ii) in the case of the
Borrower, the interest rate applicable to ABR Loans. If such Lender pays such
amount to the Agent, then such amount shall constitute such Lender's Loan
included in the applicable Borrowing Notice.

                                       28
<PAGE>
      SECTION 2.04. Notes; Repayment of Loans.

         (a) Revolving Credit Loans made by a Lender to the Borrower may be
evidenced by a single Revolving Credit Note, duly executed by the Borrower,
dated as of the Closing Date, in substantially the form of Exhibit A hereto,
delivered by the Borrower and payable to such Lender in a principal amount equal
to such Lender's Revolving Credit Commitment on such date and Seasonal Revolving
Credit Loans made by a Lender to the Borrower may be evidenced by a single
Seasonal Revolving Credit Note, duly executed by the Borrower, dated as of the
Closing Date, in substantially the form of Exhibit B hereto, delivered by the
Borrower and payable to such Lender in a principal amount equal to the highest
principal amount at any time outstanding of such Lender's Seasonal Revolving
Credit Commitment; provided, however, that no Lender shall receive a Revolving
Credit Note or Seasonal Revolving Credit Note without first requesting Borrower
to deliver the same to such Lender. Upon receipt of such request, Borrower shall
promptly execute and deliver such Revolving Credit Note or Seasonal Revolving
Credit Note to such Lender.

      (b) Each Revolving Credit Loan shall bear interest from its date on the
outstanding principal balance thereof, as provided in Section 2.05 hereof. The
outstanding balance of each Revolving Credit Loan and all accrued and unpaid
interest thereon shall mature and be due and payable in full on the Revolving
Credit Termination Date. Each Seasonal Revolving Credit Loan shall bear interest
from its date on the outstanding principal balance thereof, as provided in
Section 2.05 hereof. The outstanding balance of each Seasonal Revolving Credit
Loan and all accrued and unpaid interest thereon shall mature and be due and
payable in full on the earlier to occur of (i) Seasonal Revolving Credit
Termination Date or (ii) the last day of the Seasonal Revolving Credit
Availability Period during which each such Seasonal Revolving Credit Loan was
made.

      (c) Each Lender, or the Agent on its behalf, shall, and is hereby
authorized by the Borrower to, endorse on the schedule attached to any Note of
such Lender (or on a continuation of such schedule attached to such Note and
made a part thereof) an appropriate notation evidencing, for all Notes, the date
and amount of each Loan to the Borrower from such Lender and the date and amount
of each payment and prepayment with respect thereto; provided, however, that the
failure of any Person to make such a notation on a Note shall not affect any
obligations of the Borrower under such Note. Any such notation shall be
conclusive and binding as to the date and amount of such Loan or portion
thereof, or payment or prepayment of principal or interest thereon, absent
manifest error.

      SECTION 2.05. Interest on Loans.

      (a) Subject to the provisions of Section 2.08 and Section 9.13 hereof,
each ABR Loan shall bear interest at a rate per annum equal to the Alternate
Base Rate plus the Applicable Margin then in effect.

                                       29
<PAGE>
      (b) Subject to the provisions of Section 2.08 and Section 9.13 hereof,
each Eurodollar Loan shall bear interest at a rate per annum equal to the
Adjusted LIBO Rate plus the Applicable Margin then in effect.

      (c) Subject to the provisions of Section 2.08 and Section 9.13 hereof,
each Reference Rate Loan shall bear interest at a rate per annum equal to the
Reference Rate plus the Applicable Margin then in effect.

      (d) Accrued interest on each Revolving Credit Loan shall be payable in
arrears on each Interest Payment Date for such Revolving Credit Loan and on the
Revolving Credit Termination Date. Accrued interest on each Seasonal Revolving
Credit Loan shall be payable in arrears on each Interest Payment Date for such
Seasonal Revolving Credit Loan and on the Seasonal Revolving Credit Termination
Date. Notwithstanding the foregoing (i) interest accrued pursuant to Section
2.08(a) shall be payable on demand, (ii) in the event of any repayment or
prepayment of any Loan (other than a prepayment of an ABR Loan prior to the
Revolving Credit Termination Date or Seasonal Revolving Credit Termination Date,
as applicable), accrued interest on the principal amount repaid or prepaid shall
be payable on the date of such repayment or prepayment and (iii) in the event of
any conversion of any Eurodollar Loan prior to the end of the current Interest
Period therefor, accrued interest on such Loan shall be payable on the effective
date of such conversion.

      (e) All interest on the Loans hereunder shall be computed on the basis of
a year of 360 days, except that interest computed by reference to the Alternate
Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall
be computed on the basis of a year of 365 days (or 366 days in a leap year), and
in each case shall be payable for the actual number of days elapsed (including
the first day but excluding the last day). The applicable Alternate Base Rate,
Reference Rate, Adjusted LIBO Rate or LIBO Rate shall be determined by the
Agent, and such determination shall be conclusive absent manifest error.

      SECTION 2.06. Fees.

      (a) The Borrower agrees to pay to the Agent for the account of each Lender
a fee (the "Commitment Fee"), which shall accrue at the Applicable Commitment
Fee Rate on the daily amount of the unused Total Commitment of such Lender
during the period from and including the Closing Date to but excluding the date
on which such Total Commitment or any portion thereof terminates. Accrued
Commitment Fees shall be payable in arrears on the last day of March, June,
September and December of each year and on the Revolving Credit Termination Date
or Seasonal Revolving Credit Termination Date, commencing on the first such date
to occur after the date hereof; provided that any Commitment Fees accruing after
the Revolving Credit Termination Date or Seasonal Revolving Credit Termination
Date, as applicable, shall be payable on demand. The Commitment Fees shall be
computed on the basis of a year of 360 days and shall be payable for the actual
number of days elapsed (including the first day but excluding the last day).

                                       30
<PAGE>
      (b) The Borrower agrees to pay to each of the Administrative Agent and the
Agent, for its own account, and the Lenders fees payable in the amounts and at
the times separately agreed upon between the Borrower and the Administrative
Agent and/or the Agent and/or Lenders.

      (c) All fees payable hereunder shall be paid on the dates due, in
immediately available funds, to the Agent (or to Issuing Lender, in the case of
fees payable to it in respect of Letters of Credit) for distribution, in the
case of Commitment Fees, to the Lenders. Fees paid shall not be refundable under
any circumstances.

      SECTION 2.07. Termination or Reduction of the Total Revolving Credit
Commitment; Termination of Seasonal Revolving Credit Commitment.

      (a) Upon at least five (5) Business Days' prior irrevocable written notice
(or facsimile notice promptly confirmed in writing) to the Agent, the Borrower
may at any time in whole permanently terminate, or from time to time in part
permanently reduce, the Total Revolving Credit Commitment ratably among the
Lenders in accordance with the amounts of their Commitments; provided, however,
the Total Revolving Credit Commitment shall not at any time be reduced to an
amount less than the sum of the Revolving Credit Loans then outstanding. Each
voluntary partial reduction of the Total Revolving Credit Commitment shall be in
an integral multiple of five million dollars ($5,000,000).

      (b) Simultaneously with any termination or reduction of the Total
Revolving Credit Commitment pursuant to paragraph (a) above, the Borrower shall
pay to each Lender, through the Agent, the Commitment Fee due and owing through
and including the date of such termination or reduction on the amount of the
Commitment of such Lender so terminated or reduced.

      (c) The Revolving Credit Commitment of each Lender shall automatically and
permanently terminate on the Revolving Credit Termination Date, and all
Revolving Credit Loans still outstanding on such date shall be due and payable
in full together with accrued interest thereon. No Lender shall have any
obligation to make any Revolving Credit Loans after the Revolving Credit
Termination Date.

      (d) The Seasonal Revolving Credit Commitment of each Lender shall
automatically and permanently terminate on the Seasonal Revolving Credit
Termination Date, and all Seasonal Revolving Credit Loans still outstanding on
such date shall be due and payable in full together with accrued interest
thereon. No Lender shall have any obligation to make any Seasonal Revolving
Credit Loans (i) at any time other than during a Seasonal Revolving Credit
Availability Period or (ii) after the Seasonal Revolving Credit Termination
Date.

                                       31
<PAGE>
      SECTION 2.08. Interest after Default; Alternate Rate of Interest.

      (a) Notwithstanding anything to the contrary contained herein, from and
after the occurrence and during the continuance of any Default or Event of
Default, amounts outstanding hereunder shall bear interest at a rate per annum
equal to (i) in the case of overdue principal of any Loan, 3.00% plus the
aggregate rate of interest otherwise applicable to such Loan as provided herein
or (ii) in the case of any other amount outstanding hereunder (whether for
interest, fees, indemnities, or otherwise), 3.00% plus the aggregate rate of
interest applicable to ABR Loans as provided herein, but in no event at a rate
of interest higher than the maximum rate of interest permitted under applicable
law.

      (b) If prior to the commencement of any Interest Period in respect of a
Eurodollar Loan or Reference Rate Loan:

            (i) the Agent determines (which determination shall be conclusive
      absent manifest error) that adequate and reasonable means do not exist for
      ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable, for
      such Interest Period; or

            (ii) the Agent is advised by the Required Lenders that the Adjusted
      LIBO Rate or the LIBO Rate, as applicable, for such Interest Period will
      not adequately and fairly reflect the cost to such Lenders (or Lender) of
      making or maintaining their Eurodollar Loans or Reference Rate Loans (or
      its Eurodollar Loan or Reference Rate Loan) for such Interest Period;

      then the Agent shall give notice thereof to the Borrower and the Lenders
by telephone or telecopy as promptly as practicable thereafter and, until the
Agent notifies the Borrower and the Lenders that the circumstances giving rise
to such notice no longer exist, (x) any interest rate request that requests the
conversion of any Revolving Credit Loan to, or continuation of any Revolving
Credit Loan as, a Eurodollar Loan or Reference Rate Loan shall be ineffective
and (y) if any Borrowing Notice requests a Eurodollar Loan or Reference Rate
Loan, such Loan shall be made as an ABR Loan.

      SECTION 2.09. Prepayment of Loans.

      (a) Subject to the terms and conditions contained in this Section 2.09 and
elsewhere in this Agreement, the Borrower shall have the right to prepay any
Loan at any time in whole or from time to time in part (except in the case of a
Eurodollar Loan only on the last day of an Interest Period) without penalty
(except as otherwise provided for herein); provided, however, that each such
partial prepayment of a Loan shall not be less than two million dollars
($2,000,000) and in integral multiples of five hundred thousand dollars
($500,000), or if the outstanding principal balance is less than two million
dollars ($2,000,000), such prepayment shall be in whole.

                                       32
<PAGE>
      (b) On the date of any termination or reduction of the Total Revolving
Credit Commitment pursuant to Section 2.07 hereof, the Borrower shall pay or
prepay so much of the aggregate amount of all Loans outstanding as shall be
necessary in order that (i) the sum of the aggregate principal amount of all
Loans then outstanding plus the amount of the LC Exposure then outstanding will
not exceed the Total Revolving Credit Commitment on such date, and (ii) the sum
of the aggregate principal amount of all Loans then outstanding plus the amount
of the LC Exposure then outstanding will not exceed the Borrowing Base on such
date.

      (c) If on any date the sum of (i) the aggregate principal amount of all
Loans outstanding plus (ii) the amount of the LC Exposure exceeds the amount of
the Borrowing Base on such date (a "Borrowing Base Deficiency"), the Borrower
shall immediately prepay the principal of the Loans in an amount equal to or
greater than such Borrowing Base Deficiency. Such mandatory payment shall be
accompanied by all accrued and unpaid interest on the amount prepaid.

      (d) Each prepayment of the Revolving Credit Loans or Seasonal Revolving
Credit Loans shall be applied ratably to the Loans then being repaid and then as
cash collateral for outstanding Letters of Credit up to the full amount of the
LC Exposure then existing, such cash collateral to be held by the Agent for the
benefit of the Issuing Bank in a special cash collateral account.

      (e) Subject to the terms and conditions contained in this Section 2.09 and
elsewhere in this Agreement, when making a prepayment, the Borrower shall
furnish to the Agent, not later than 10:00 a.m., Dallas, Texas time, (i) on the
Business Day prior to such prepayment of ABR Loans and (ii) three (3) Business
Days prior to the date of such prepayment of Eurodollar Loans, written or
facsimile notice (promptly confirmed in writing) or, in the case of an ABR Loan
telephonic notice (promptly confirmed in writing) of prepayment which shall
specify the prepayment date and the principal amount of each Loan (or portion
thereof) to be prepaid, which notice shall be irrevocable and shall commit the
Borrower to prepay such Loan by the amount stated therein on the date stated
therein. All prepayments of Eurodollar Loans shall be accompanied by accrued
interest on the principal amount being prepaid to the date of prepayment. After
prior written notice to the Borrower (with may be by facsimile communication),
the Agent may charge, when due and payable, the Borrower's account with the
Agent for all interest, principal and Commitment Fees and other fees owing to
the Agent or the Lenders on or with respect to this Agreement or the Loans.

      (f) Prepayments with respect to any paragraph of this Section 2.09 are in
addition to prepayments made or required to be made under any other paragraph of
this Section 2.09.

      SECTION 2.10. Increased Costs.

      (a) If any Change in Law shall:

                                       33
<PAGE>
            (i) impose, modify or deem applicable any reserve, special deposit
      or similar requirement against assets of, deposits with or for the account
      of, or credit extended by, any Lender (except any such reserve requirement
      reflected in the Adjusted LIBO Rate) or the Issuing Bank; or

            (ii) impose on any Lender or the Issuing Bank or the London
      interbank market any other condition affecting this Agreement or
      Eurodollar Loans made by such Lender or any Letter of Credit or
      participation therein;

      (b) If any Lender or the Issuing Bank determines that any Change in Law
regarding capital requirements has or would have the effect of reducing the rate
of return on such Lender's or the Issuing Bank's capital or on the capital of
such Lender's or the Issuing Bank's holding company, if any, as a consequence of
this Agreement or the Loans made by, or participations in Letters of Credit held
by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level
below that which such Lender or the Issuing Bank or such Lender's or the Issuing
Bank's holding company could have achieved but for such Change in Law (taking
into consideration such Lender's or the Issuing Bank's policies and the policies
of such Lender's or the Issuing Bank's holding company with respect to capital
adequacy), then from time to time the Borrower will pay to such Lender or the
Issuing Bank, as the case may be, such additional amount or amounts as will
compensate such Lender or the Issuing Bank or such Lender's or the Issuing
Bank's holding company for any such reduction suffered.

      (c) A certificate of a Lender or the Issuing Bank setting forth the amount
or amounts necessary to compensate such Lender or the Issuing Bank or its
holding company, as the case may be, as specified in paragraph (a) or (b) of
this Section shall be delivered to the Borrower and shall be conclusive absent
manifest error. The Borrower shall pay such Lender or the Issuing Bank, as the
case may be, the amount shown as due on any such certificate within 10 days
after receipt thereof.

      (d) Failure or delay on the part of any Lender or the Issuing Bank to
demand compensation pursuant to this Section shall not constitute a waiver of
such Lender's or the Issuing Bank's right to demand such compensation; provided
that the Borrower shall not be required to compensate a Lender or the Issuing
Bank pursuant to this Section for any increased costs or reductions incurred
more than 270 days prior to the date that such Lender or the Issuing Bank, as
the case may be, notifies the Borrower of the Change in Law giving rise to such
increased costs or reductions and of such Lender's or the Issuing Bank's
intention to claim compensation therefor; provided further that, if the Change
in Law giving rise to such increased costs or reductions is retroactive, then
the 270-day period referred to above shall be extended to include the period of
retroactive effect thereof.

      SECTION 2.11. Break Funding Payments.

      In the event of (a) the payment of any principal of any Eurodollar Loan
other than on the last day of an Interest Period applicable thereto (including
as a result of an Event

                                       34
<PAGE>
of Default), (b) the conversion of any Eurodollar Loan other than on the last
day of the Interest Period applicable thereto, or (c) the failure to borrow,
convert, continue or prepay any Eurodollar Loan on the date specified in any
notice delivered pursuant hereto (regardless of whether such notice may be
revoked hereunder and is revoked in accordance herewith), then, in any such
event, the Borrower shall compensate each Lender for the loss, cost and expense
attributable to such event. In the case of a Eurodollar Loan, such loss, cost or
expense to any Lender shall be deemed to include an amount determined by such
Lender to be the excess, if any, of (i) the amount of interest which would have
accrued on the principal amount of such Loan had such event not occurred, at the
Adjusted LIBO Rate that would have been applicable to such Loan, for the period
from the date of such event to the last day of the then current Interest Period
therefor (or, in the case of a failure to borrow, convert or continue, for the
period that would have been the Interest Period for such Loan), over (ii) the
amount of interest which would accrue on such principal amount for such period
at the interest rate which such Lender would bid were it to bid, at the
commencement of such period, for dollar deposits of a comparable amount and
period from other banks in the eurodollar market. A certificate of any Lender
setting forth any amount or amounts that such Lender is entitled to receive
pursuant to this Section shall be delivered to the Borrower and shall be
conclusive absent manifest error. The Borrower shall pay such Lender the amount
shown as due on any such certificate within 10 days after receipt thereof.

      SECTION 2.12. Taxes. (a) Any and all payments by or on account of any
obligation of the Borrower hereunder shall be made free and clear of and without
deduction for any Indemnified Taxes or Other Taxes; provided that if the
Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from
such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to
additional sums payable under this Section) the Agent, Lender or Issuing Bank
(as the case may be) receives an amount equal to the sum it would have received
had no such deductions been made, (ii) the Borrower shall make such deductions
and (iii) the Borrower shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.

      (b) In addition, the Borrower shall pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law.

      (c) The Borrower shall indemnify the Agent, each Lender and the Issuing
Bank, within 10 days after written demand therefor, for the full amount of any
Indemnified Taxes or Other Taxes paid by the Agent, such Lender or the Issuing
Bank, as the case may be, on or with respect to any payment by or on account of
any obligation of the Borrower hereunder (including Indemnified Taxes or Other
Taxes imposed or asserted on or attributable to amounts payable under this
Section) and any penalties, interest and reasonable expenses arising therefrom
or with respect thereto, whether or not such Indemnified Taxes or Other Taxes
were correctly or legally imposed or asserted by the relevant Governmental
Authority. A certificate as to the amount of such payment or liability delivered
to the Borrower by a Lender or the Issuing Bank, or by the Agent on its

                                       35
<PAGE>
own behalf or on behalf of a Lender or the Issuing Bank, shall be conclusive
absent manifest error.

      (d) As soon as practicable after any payment of Indemnified Taxes or Other
Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver to
the Agent the original or a certified copy of a receipt issued by such
Governmental Authority evidencing such payment, a copy of the return reporting
such payment or other evidence of such payment reasonably satisfactory to the
Agent.

      (e) Any Foreign Lender that is entitled to an exemption from or reduction
of withholding tax under the law of the jurisdiction in which the Borrower is
located, or any treaty to which such jurisdiction is a party, with respect to
payments under this Agreement shall deliver to the Borrower (with a copy to the
Agent), at the time or times prescribed by applicable law, such properly
completed and executed documentation prescribed by applicable law or reasonably
requested by the Borrower as will permit such payments to be made without
withholding or at a reduced rate.

      (f) If the Agent or a Lender determines, in its sole discretion, that it
has received a refund of any Taxes or Other Taxes as to which it has been
indemnified by the Borrower or with respect to which the Borrower has paid
additional amounts pursuant to this Section 2.12, it shall pay over such refund
to the Borrower (but only to the extent of indemnity payments made, or
additional amounts paid, by the Borrower under this Section 2.12 with respect to
the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket
expenses of the Agent or such Lender and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such
refund); provided, that the Borrower, upon the request of the Agent or such
Lender, agrees to repay the amount paid over to the Borrower (plus any
penalties, interest or other charges imposed by the relevant Governmental
Authority) to the Agent or such Lender in the event the Agent or such Lender is
required to repay such refund to such Governmental Authority. This Section shall
not be construed to require the Agent or any Lender to make available its tax
returns (or any other information relating to its taxes which it deems
confidential) to the Borrower or any other Person.

      SECTION 2.13. Payments Generally; Pro Rata Treatment, Sharing of Set-offs.

      (a) The Borrower shall make each payment required to be made by it
hereunder (whether of principal, interest, fees or reimbursement of obligations
in respect of Letters of Credit, or otherwise) prior to noon, Dallas, Texas
time, on the date when due, in immediately available funds, without set-off or
counterclaim. Any amounts received after such time on any date may, in the
discretion of the Agent, be deemed to have been received on the next succeeding
Business Day for purposes of calculating interest thereon. All such payments
shall be made to the Agent at its offices in San Francisco, except payments to
be made directly to the Issuing Bank or any Lender as expressly provided herein.
The Agent shall distribute any such payments received by it for the account of
any other Person to the appropriate recipient promptly following receipt
thereof. If any payment hereunder shall be due on a day that is not a Business
Day, the

                                       36
<PAGE>
date for payment shall be extended to the next succeeding Business Day,
and, in the case of any payment accruing interest, interest thereon shall be
payable for the period of such extension. All payments hereunder shall be made
in dollars.

      (b) If at any time insufficient funds are received by and available to the
Agent to pay fully all amounts of principal, unreimbursed LC Disbursements,
interest, fees, and other amounts then due hereunder, such funds shall be
applied (i) first, to any reimbursements due to Agent under Article VIII hereof,
(ii) second, to any reimbursements due to Administrative Agent under Article
VIIIA hereof, (iii) third, towards payment of interest and fees then due
hereunder, ratably among the parties entitled thereto in accordance with the
amounts of interest and fees then due to such parties, and (iv) fourth, towards
payment of principal and unreimbursed LC Disbursements then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of
principal and unreimbursed LC Disbursements then due to such parties.

      (c) Subject to Section 9.08, if any Lender shall, by exercising any right
of set-off or counterclaim or otherwise, obtain payment in respect of any
principal of or interest on any of its Loans or participations in LC
Disbursements resulting in such Lender receiving payment of a greater proportion
of the aggregate amount of its Loans and participations in LC Disbursements and
accrued interest thereon than the proportion received by any other Lender, then
the Lender receiving such greater proportion shall purchase (for cash at face
value) participations in the Loans and participations in LC Disbursements of
other Lenders to the extent necessary so that the benefit of all such payments
shall be shared by the Lenders ratably in accordance with the aggregate amount
of principal of and accrued interest on their respective Loans and
participations in LC Disbursements; provided that (i) if any such participations
are purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price
restored to the extent of such recovery, without interest, and (ii) the
provisions of this paragraph shall not be construed to apply to any payment made
by the Borrower pursuant to and in accordance with the express terms of this
Agreement or any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans or participations
in LC Disbursements to any assignee or participant, other than to the Borrower
or any Subsidiary or Affiliate thereof (as to which the provisions of this
paragraph shall apply). The Borrower consents to the foregoing and agrees, to
the extent it may effectively do so under applicable law, that any Lender
acquiring a participation pursuant to the foregoing arrangements may exercise
against the Borrower rights of set-off and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of the Borrower
in the amount of such participation.

      (d) Unless the Agent shall have received notice from the Borrower prior to
the date on which any payment is due to the Agent for the account of the Lenders
or the Issuing Bank hereunder that the Borrower will not make such payment, the
Agent may assume that the Borrower has made such payment on such date in
accordance herewith and may, in reliance upon such assumption, distribute to the
Lenders or the Issuing Bank,

                                       37
<PAGE>
as the case may be, the amount due. In such event, if the Borrower has not in
fact made such payment, then each of the Lenders or the Issuing Bank, as the
case may be, severally agrees to repay to the Agent forthwith on demand the
amount so distributed to such Lender or Issuing Bank with interest thereon, for
each day from and including the date such amount is distributed to it to but
excluding the date of payment to the Agent, at the greater of the Federal Funds
Effective Rate and a rate determined by the Agent in accordance with banking
industry rules on interbank compensation.

      (e) If any Lender shall fail to make any payment required to be made by it
hereunder, then the Agent may, in its discretion (notwithstanding any contrary
provision hereof), apply any amounts thereafter received by the Agent for the
account of such Lender to satisfy such Lender's obligations under such Sections
until all such unsatisfied obligations are fully paid.

      SECTION 2.14. Letters of Credit.

      (a) General. Subject to the terms and conditions set forth herein, the
Borrower may request the issuance of Letters of Credit for its own account, in a
form reasonably acceptable to the Agent and the Issuing Bank, at any time and
from time to time from the Closing Date until the Revolving Credit Termination
Date. In the event of any inconsistency between the terms and conditions of this
Agreement and the terms and conditions of any form of letter of credit
application or other agreement submitted by the Borrower to, or entered into by
the Borrower with, the Issuing Bank relating to any Letter of Credit, the terms
and conditions of this Agreement shall control.

      (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions.
To request the issuance of a Letter of Credit (or the amendment, renewal or
extension of an outstanding Letter of Credit), the Borrower shall hand deliver
or telecopy (or transmit by electronic communication, if arrangements for doing
so have been approved by the Issuing Bank) to the Issuing Bank and the Agent
(reasonably in advance of the requested date of issuance, amendment, renewal or
extension) a Borrowing Notice requesting the issuance of a Letter of Credit, or
identifying the Letter of Credit to be amended, renewed or extended, and
specifying the date of issuance, amendment, renewal or extension (which shall be
a Business Day), the date on which such Letter of Credit is to expire (which
shall comply with paragraph (c) of this Section), the amount of such Letter of
Credit, the name and address of the beneficiary thereof and such other
information as shall be necessary to prepare, amend, renew or extend such Letter
of Credit. If requested by the Issuing Bank, the Borrower also shall submit a
letter of credit application on the Issuing Bank's standard form in connection
with any request for a Letter of Credit. The Borrower hereby agrees that it
shall not request a Letter of Credit to be issued, amended, renewed or extended
unless (and upon issuance, amendment, renewal or extension of each Letter of
Credit the Borrower shall be deemed to represent and warrant that), after giving
effect to such issuance, amendment, renewal or extension (i) the amount of the
LC Exposure does not exceed $5,000,000 and (ii) the sum of the aggregate
principal amount of all outstanding Loans plus the amount of the LC Exposure
does not exceed the amount of the Borrowing Base on such date.

                                       38

<PAGE>

             (c) Expiration Date. Each Letter of Credit shall expire at or prior
to the close of business on the earlier of (i) the date one year after the date
of the issuance of such Letter of Credit (or, in the case of any renewal or
extension thereof, one year after such renewal or extension) and (ii) the date
that is five Business Days prior to the Final Maturity Date; provided, however,
that a Letter of Credit may have a later date of expiration date in the
reasonable discretion of the Issuing Bank and the Agent if the Borrower deposits
cash collateral with either the Issuing Bank or the Agent upon issuance thereof
in an amount equal to 100% of the face amount of such Letter of Credit (which
cash collateral shall be subject to the provisions of Section 2.14(j) hereof)
and the Borrower complies with such other conditions and requirements to the
issuance thereof as may be required by Agent and/or Issuing Bank (in addition
all other conditions and requirements contained in this Section 2.14).

             (d) Participations. By the issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing the amount thereof) and without any
further action on the part of the Issuing Bank or the Lenders, the Issuing Bank
hereby grants to each Lender, and each Lender hereby acquires from the Issuing
Bank, a participation in such Letter of Credit equal to such Lender's Applicable
Percentage of the aggregate amount available to be drawn under such Letter of
Credit. In consideration and in furtherance of the foregoing, each Lender hereby
absolutely and unconditionally agrees to pay to the Agent, for the account of
the Issuing Bank, such Lender's Applicable Percentage of each LC Disbursement
made by the Issuing Bank and not reimbursed by the Borrower on the date due as
provided in paragraph (e) of this Section, or of any reimbursement payment
required to be refunded to the Borrower for any reason. Each Lender acknowledges
and agrees that its obligation to acquire participations pursuant to this
paragraph in respect of Letters of Credit is absolute and unconditional and
shall not be affected by any circumstance whatsoever, including any amendment,
renewal or extension of any Letter of Credit or the occurrence and continuance
of a Default or reduction or termination of the Commitments, and that each such
payment shall be made without any offset, abatement, withholding or reduction
whatsoever.

             (e) Reimbursement. If the Issuing Bank shall make any LC
Disbursement in respect of a Letter of Credit, the Borrower shall reimburse such
LC Disbursement with interest from the date of such LC Disbursement as set forth
in Section 2.14(h) by paying to the Agent an amount equal to such LC
Disbursement not later than 11:00 a.m., Dallas, Texas time, on the date that
such LC Disbursement is made, if the Borrower shall have received notice of such
LC Disbursement prior to 9:00 a.m., Dallas, Texas time, on such date, or, if
such notice has not been received by the Borrower prior to such time on such
date, then not later than 11:00 a.m., Dallas, Texas time, on the Business Day
immediately following the day that the Borrower receives such notice, if such
notice is not received prior to such time on the day of receipt; provided that
the Borrower may, subject to the conditions to borrowing set forth herein,
request in accordance herewith that such payment be financed with an ABR Loan
under the Total Revolving Credit Commitment in an equivalent amount and, to the
extent so financed, the Borrower's obligation to make such payment shall be
discharged and replaced by the resulting ABR Loan. If the Borrower fails to make
such payment when due, the Agent shall notify each Lender of the

                                       39
<PAGE>
applicable LC Disbursement, the payment then due from the Borrower in respect
thereof and such Lender's Applicable Percentage thereof. Promptly following
receipt of such notice, each Lender shall pay to the Agent its Applicable
Percentage of the payment then due from the Borrower, in the same manner as
provided in Section 2.03(b) with respect to Loans made by such Lender (and
Section 2.03(b) shall apply, mutatis mutandis, to the payment obligations of the
Lenders), and the Agent shall promptly pay to the Issuing Bank the amounts so
received by it from the Lenders. Promptly following receipt by the Agent of any
payment from the Borrower pursuant to this paragraph, the Agent shall distribute
such payment to the Issuing Bank or, to the extent that Lenders have made
payments pursuant to this paragraph to reimburse the Issuing Bank, then to such
Lenders and the Issuing Bank as their interests may appear. Any payment made by
a Lender pursuant to this paragraph to reimburse the Issuing Bank for any LC
Disbursement (other than the funding of ABR Loans as contemplated above) shall
not constitute a Loan and shall not relieve the Borrower of its obligation to
reimburse such LC Disbursement.

      (f) Obligations Absolute. The Borrower's obligation to reimburse LC
Disbursements as provided in paragraph (e) of this Section shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement under any and all circumstances whatsoever and
irrespective of (i) any lack of validity or enforceability of any Letter of
Credit or this Agreement, or any term or provision therein, (ii) any draft or
other document presented under a Letter of Credit proving to be forged,
fraudulent or invalid in any respect or any statement therein being untrue or
inaccurate in any respect, (iii) payment by the Issuing Bank under a Letter of
Credit against presentation of a draft or other document that does not comply
with the terms of such Letter of Credit, or (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for
the provisions of this Section, constitute a legal or equitable discharge of, or
provide a right of setoff against, the Borrower's obligations hereunder. Neither
the Agent, the Lenders nor the Issuing Bank, nor any of their Related Parties,
shall have any liability or responsibility by reason of or in connection with
the issuance or transfer of any Letter of Credit or any payment or failure to
make any payment thereunder (irrespective of any of the circumstances referred
to in the preceding sentence), or any error, omission, interruption, loss or
delay in transmission or delivery of any draft, notice or other communication
under or relating to any Letter of Credit (including any document required to
make a drawing thereunder), any error in interpretation of technical terms or
any consequence arising from causes beyond the control of the Issuing Bank;
provided that the foregoing shall not be construed to excuse the Issuing Bank
from liability to the Borrower to the extent of any direct damages (as opposed
to consequential damages, claims in respect of which are hereby waived by the
Borrower to the extent permitted by applicable law) suffered by the Borrower
that are caused by the Issuing Bank's failure to exercise care when determining
whether drafts and other documents presented under a Letter of Credit comply
with the terms thereof. The parties hereto expressly agree that, in the absence
of gross negligence or willful misconduct on the part of the Issuing Bank (as
finally determined by a court of competent jurisdiction), the Issuing Bank shall
be deemed to have exercised care in each such determination. In furtherance of
the foregoing and without limiting the generality

                                       40
<PAGE>
thereof, the parties agree that, with respect to documents presented which
appear on their face to be in substantial compliance with the terms of a Letter
of Credit, the Issuing Bank may, in its sole discretion, either accept and make
payment upon such documents without responsibility for further investigation,
regardless of any notice or information to the contrary, or refuse to accept and
make payment upon such documents if such documents are not in strict compliance
with the terms of such Letter of Credit.

      (g) Disbursement Procedures. The Issuing Bank shall, promptly following
its receipt thereof, examine all documents purporting to represent a demand for
payment under a Letter of Credit. The Issuing Bank shall promptly notify the
Agent and the Borrower by telephone (confirmed by telecopy) of such demand for
payment and whether the Issuing Bank has made or will make an LC Disbursement
thereunder; provided that any failure to give or delay in giving such notice
shall not relieve the Borrower of its obligation to reimburse the Issuing Bank
and the Lenders with respect to any such LC Disbursement.

      (h) Interim Interest. If the Issuing Bank shall make any LC Disbursement,
then, unless the Borrower shall reimburse such LC Disbursement in full on the
date such LC Disbursement is made, the unpaid amount thereof shall bear
interest, for each day from and including the date such LC Disbursement is made
to but excluding the date that the Borrower reimburses such LC Disbursement, at
the rate per annum then applicable to ABR Loans; provided that, if the Borrower
fails to reimburse such LC Disbursement when due pursuant to paragraph (e) of
this Section, then Section 2.08(a) shall apply. Interest accrued pursuant to
this paragraph shall be for the account of the Issuing Bank, except that
interest accrued on and after the date of payment by any Lender pursuant to
paragraph (e) of this Section to reimburse the Issuing Bank shall be for the
account of such Lender to the extent of such payment.

      (i) Replacement of the Issuing Bank. The Issuing Bank may be replaced at
any time by written agreement among the Borrower, the Agent, the replaced
Issuing Bank and the successor Issuing Bank. The Agent shall notify the Lenders
of any such replacement of the Issuing Bank. At the time any such replacement
shall become effective, the Borrower shall pay all unpaid fees accrued for the
account of the replaced Issuing Bank pursuant to Section 2.12(k). From and after
the effective date of any such replacement, (i) the successor Issuing Bank shall
have all the rights and obligations of the Issuing Bank under this Agreement
with respect to Letters of Credit to be issued thereafter and (ii) references
herein to the term "Issuing Bank" shall be deemed to refer to such successor or
to any previous Issuing Bank, or to such successor and all previous Issuing
Banks, as the context shall require. After the replacement of an Issuing Bank
hereunder, the replaced Issuing Bank shall remain a party hereto and shall
continue to have all the rights and obligations of an Issuing Bank under this
Agreement with respect to Letters of Credit issued by it prior to such
replacement, but shall not be required to issue additional Letters of Credit.

      (j) Cash Collateralization. If any Event of Default shall occur and be
continuing, on the Business Day that the Borrower receives notice from the Agent
or the

                                       41
<PAGE>
Required Lenders (or, if the maturity of the Loans has been accelerated, Lenders
with LC Exposure representing greater than 10% of the total LC Exposure)
demanding the deposit of cash collateral pursuant to this paragraph, the
Borrower shall deposit in an account with the Agent, in the name of the Agent
and for the benefit of the Lenders, an amount in cash equal to the LC Exposure
as of such date plus any accrued and unpaid interest thereon; provided that the
obligation to deposit such cash collateral shall become effective immediately,
and such deposit shall become immediately due and payable, without demand or
other notice of any kind, upon the occurrence of any Event of Default with
respect to the Borrower described in clause (e) or (f) of Article VII. Such
deposit shall be held by the Agent as collateral for the payment and performance
of the obligations of the Borrower under this Agreement. The Agent shall have
exclusive dominion and control, including the exclusive right of withdrawal,
over such account. Other than any interest earned on the investment of such
deposits, which investments shall be made at the option and sole discretion of
the Agent and at the Borrower's risk and expense, such deposits shall not bear
interest. Interest or profits, if any, on such investments shall accumulate in
such account. Moneys in such account shall be applied by the Agent to reimburse
the Issuing Bank for LC Disbursements for which it has not been reimbursed and,
to the extent not so applied, shall be held for the satisfaction of the
reimbursement obligations of the Borrower for the LC Exposure at such time or,
if the maturity of the Loans has been accelerated (but subject to the consent of
Lenders with LC Exposure representing greater than 10% of the total LC
Exposure), be applied to satisfy other obligations of the Borrower under this
Agreement. If the Borrower is required to provide an amount of cash collateral
hereunder as a result of the occurrence of an Event of Default, such amount (to
the extent not applied as aforesaid) shall be returned to the Borrower within
three Business Days after all Events of Default have been cured or waived.

      (k) Letter of Credit Fees. The Borrower agrees to pay (i) to the Agent for
the account of each Lender a participation fee with respect to its
participations in Letters of Credit, which shall accrue at the same Applicable
Margin used to determine the interest rate applicable to Eurodollar Loans on the
average daily amount of such Lender's LC Exposure (excluding any portion thereof
attributable to unreimbursed LC Disbursements) during the period from and
including the Closing Date to but excluding the later of the date on which such
Lender's Revolving Credit Commitment terminates and the date on which such
Lender ceases to have any LC Exposure, and (ii) to the Issuing Bank a fronting
fee, which shall accrue at the rate of 0.125% per annum on the average daily
amount of the LC Exposure (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the period from and including the
Effective Date to but excluding the later of the date of termination of the
Total Commitments and the date on which there ceases to be any LC Exposure, as
well as the Issuing Bank's standard fees with respect to the issuance,
amendment, renewal or extension of any Letter of Credit or processing of
drawings thereunder. Participation fees and fronting fees accrued through and
including the last day of March, June, September and December of each year shall
be payable on the third Business Day following such last day, commencing on the
first such date to occur after the Effective Date; provided that all such fees
shall be payable on the

                                       42
<PAGE>
date on which the Total Commitments terminate and any such fees accruing after
the date on which the Total Commitments terminate shall be payable on demand.
Any other fees payable to the Issuing Bank pursuant to this paragraph shall be
payable within 10 days after demand. All participation fees and fronting fees
shall be computed on the basis of a year of 360 days and shall be payable for
the actual number of days elapsed (including the first day but excluding the
last day).

      SECTION 2.15. Incremental Facility.

      (a) So long as no Default or Event of Default has occurred and is
continuing, at any time prior to March 31, 2005, the Borrower may request
pursuant to the procedure set forth in Section 2.15(c), the addition of an
Incremental Facility consisting of two types of new loans referred to herein as
"Incremental Revolving Credit Loans" and "Incremental Seasonal Revolving Credit
Loans" (collectively, "Incremental Loans"); provided however that the Borrower
may not make a request for an Incremental Facility in an amount other than
$10,000,000. The Incremental Revolving Credit Loans shall: (i) upon the
effectiveness of the Incremental Commitment relating thereto as provided in
Section 2.15(b), be deemed to be Revolving Credit Loans for all purposes under
this Agreement and the other Credit Documents; (ii) have the same interest rates
and related margins and commitment fees as all other Revolving Credit Loans; and
(iii) otherwise have all of the same terms and conditions (other than the amount
of the upfront fee) as each Revolving Credit Loan that is not an Incremental
Revolving Credit Loan. In addition, all references in the Credit Documents to
Revolving Credit Loans shall be deemed, as the context requires, to include
references to Incremental Revolving Credit Loans made pursuant to this
Agreement. The Incremental Seasonal Revolving Credit Loans shall: (i) upon the
effectiveness of the Incremental Commitment relating thereto as provided in
Section 2.15(b), be deemed to be Seasonal Revolving Credit Loans for all
purposes under this Agreement and the other Credit Documents; (ii) have the same
interest rates and related margins and commitment fees as all other Seasonal
Revolving Credit Loans; and (iii) otherwise have all of the same terms and
conditions (other than the amount of the upfront fee) as each Seasonal Revolving
Credit Loan that is not an Incremental Seasonal Revolving Credit Loan. In
addition, all references in the Credit Documents to Seasonal Revolving Credit
Loans shall be deemed, as the context requires, to include references to
Incremental Seasonal Revolving Credit Loans made pursuant to this Agreement. No
Lender shall have any obligation to make an Incremental Loan unless and until it
commits to do so. Incremental Commitments in respect of Incremental Loans shall
become part of the Total Commitments under this Agreement pursuant to (x) an
amendment (an "Incremental Loan Amendment") to this Agreement executed by the
Borrower, each Lender or other financial institution that is approved by the
Administrative Agent which agrees to provide such Incremental Commitment (and no
other Lender shall be required to execute such amendment), and the
Administrative Agent, and (y) any amendments to the other Credit Documents
(executed by the Borrower, its relevant Subsidiaries, and the Administrative
Agent only) as the Administrative Agent shall reasonably deem appropriate to
effect such purpose. Notwithstanding anything to the contrary contained herein,
the effectiveness of such Incremental Loan Amendment shall be subject to the
satisfaction on the date thereof and,

                                       43
<PAGE>
if different, on the date on which the Incremental Loans are made, of each of
the conditions set forth in Section 4.01.

      (b) So long as (i) the Borrower shall have given the Administrative Agent
no less than five Business Days' prior notice of the effectiveness thereof and
(ii) any financial institution not theretofore a Lender which is providing the
Incremental Commitment shall have become a Lender under this Agreement pursuant
to an Incremental Loan Amendment, the Incremental Commitment being requested by
the Borrower shall become effective under this Agreement upon the effectiveness
of such Incremental Loan Amendment. Upon such effectiveness, (i) Part I of
Schedule 2.01(a) shall be deemed amended and restated in its entirety as set
forth on Part II of Schedule 2.01(a) and (ii) Part I of Schedule 2.01(b) shall
be deemed amended and restated in its entirety as set forth on Part II of
Schedule 2.01(b). In the event that the Incremental Facility shall have become
effective, the Person providing the Incremental Commitment shall be deemed to
have agreed, upon the terms and subject to the conditions of this Agreement,
with respect to the Incremental Commitment, to make from time to time during the
period from the date of the effectiveness of the applicable Incremental Loan
Amendment through the Final Maturity Date, one or more Loans to the Borrower
pursuant to the provisions of Section 2.03 in an aggregate principal amount not
exceeding at any time such Person's aggregate portion of the Total Commitment at
such time.

      (c) When the Borrower wishes to request a Lender or other financial
institution to provide proposals for the providing of the Incremental Facility,
the Borrower may solicit requests from any Lender or other financial institution
for the providing of a commitment for Incremental Loans (the "Incremental
Commitment"). Upon the selection by the Borrower of a Lender or such other
financial institution, the Borrower shall promptly notify the Administrative
Agent of the Lender or such other financial institution selected for approval by
the Administrative Agent. Administrative Agent shall promptly thereafter notify
Borrower of its approval or rejection of such Lender or other financial
institution, which approval shall not to be unreasonably withheld.

                   ARTICLE III. REPRESENTATIONS AND WARRANTIES

      The Borrower represents and warrants to each of the Lenders that:

      SECTION 3.01. Organization; Legal Existence. The Borrower and each of its
Subsidiaries is a corporation or other juridical person, validly existing and in
good standing under the laws of the jurisdiction of its organization or
formation, as applicable, has the requisite corporate or other juridical power
and authority to own its property and assets and to carry on its business as now
conducted and is qualified to do business in every jurisdiction where such
qualification is required (all such jurisdictions being listed in Schedule 3.14
hereto), except for those jurisdictions in which the failure to qualify would
not have a Material Adverse Effect. The Borrower has the corporate power to
execute, deliver and perform its obligations under the American Capital
Agreement and this Agreement and the other Credit Documents and to borrow
hereunder and under the

                                       44
<PAGE>
American Capital Agreement and to execute and deliver the Notes and the American
Capital Notes.

      SECTION 3.02. Authorization. The Credit Transactions and the American
Capital Transactions (a) have been duly authorized by all requisite corporate
action, and (b) will not (i) violate (A) the certificate or articles of
incorporation or other applicable constitutive documents or the bylaws of the
Borrower or any of its Subsidiaries party to the same, or to the Borrower's
knowledge, any provision of law, statute, rule or regulation applicable to the
Borrower and such Subsidiaries, (B) any order of any court, or any rule,
regulation or order of any other agency of government addressed to and binding
upon the Borrower or any of its Subsidiaries, or (C) any provisions of any
material indenture, agreement or other instrument to which the Borrower or any
of such Subsidiaries or any of their respective properties or assets are or may
be bound, (ii) be in conflict with, result in a breach of or constitute (alone
or with notice or lapse of time or both) a default under any material indenture,
agreement or other instrument referred to in clause (i)(C) above or (iii) result
in the creation or imposition of any Lien of any nature whatsoever upon any
property or assets of the Borrower or any of its Subsidiaries, other than the
Liens created in favor of the Collateral Agent, the Agent, the Lenders, American
Capital Agent, and the holders of the American Capital Notes.

      SECTION 3.03. Governmental Approvals. No registration or filing with,
consent or approval of, or other action by any federal, state or other
governmental agency, authority or regulatory body is or will be required by the
Borrower or any Guarantor as a condition to the Credit Transactions or the
American Capital Transactions.

      SECTION 3.04. Binding Effect. This Agreement constitutes a legal, valid
and binding obligation of the Borrower, enforceable against the Borrower in
accordance with its terms, and each of the other Credit Documents to which it or
a Subsidiary is a party, when duly executed and delivered, will constitute a
legal, valid and binding obligation of the Borrower or such Subsidiary, as
applicable.

      SECTION 3.05. Material Adverse Effect; Default. Since June 30, 2002, no
event has occurred which has had, or could reasonably be expected to have, a
Material Adverse Effect. No event has occurred and is continuing which
constitutes a Default.

      SECTION 3.06. Litigation; Compliance With Laws; Etc.

      (a) There are not any actions, suits or proceedings at law or in equity or
by or before any governmental instrumentality or other agency or regulatory
authority now pending or to Borrower's knowledge threatened against or affecting
the Borrower or any of its Subsidiaries or the businesses, assets or rights of
the Borrower or any of its Subsidiaries (i) which, if adversely determined,
could reasonably be expected to materially impair the ability of the Borrower
and its Subsidiaries taken as a whole to conduct business substantially as now
conducted, or otherwise could reasonably be expected to have a Material Adverse
Effect, except as disclosed on Schedule 3.06, (ii) as to which it is probable
(within the meaning of Statement of Financial Accounting

                                       45
<PAGE>
Standards No. 5) that there will be an adverse determination, or (iii) which
involve any of the Credit Transactions or the American Capital Transactions.

      (b) To the Borrower's knowledge, neither the Borrower nor any of its
Subsidiaries is in violation of any law, statute, rule or regulation applicable
to any of them, or in default with respect to any judgment, writ, injunction,
decree, rule or regulation of any court or governmental agency or
instrumentality addressed to and binding on it, the violation of or default with
respect to which could reasonably be expected to have a Material Adverse Effect.

      (c) Except as set forth in Schedule 3.06, there is no remedial or other
corrective action that any of the Borrower or any of its Subsidiaries (other
than ACE Funding) is required to take to remain in compliance with any judgment,
order, writ, injunction or decree of any Governmental Authority or to maintain
any material permits, approvals or licenses granted by any Governmental
Authority in full force and effect. During the past 5 years, none of the
officers or directors of the Borrower or its Subsidiaries (other than ACE
Funding) have been convicted of any felony involving moral turpitude. During the
past 2 years, none of the officers or directors of the Borrower or its
Subsidiaries (other than ACE Funding) have been bankrupt nor an executive
officer of a bankrupt company.

      SECTION 3.07. Financial Statements. The Borrower has heretofore furnished
to the Agent (i) an audited Consolidated balance sheet and statement of income
of the Borrower as of and for the Fiscal Year ended June 30, 2002, (ii)
unaudited Consolidated balance sheets of the Borrower as of September 30, 2002,
and December 31, 2002 and the related statement of income for the respective
three-month periods then ended (which may be delivered on the Closing Date),
prepared by management of the Borrower and in form acceptable to Agent, and
(iii) Consolidated financial projections for the Borrower and its Subsidiaries
for its 2003, 2004, 2005, and 2006 Fiscal Years on an annual basis, prepared by
management of the Borrower. The balance sheets and statements of income
described in (i) and (ii) present fairly in all material respects the
Consolidated financial condition and results of operations of the Borrower and
its Subsidiaries, as of the dates and for the periods indicated, and such
balance sheets and the notes thereto (if any) disclose all material liabilities,
direct or contingent, of the Borrower and its Subsidiaries, as of the dates
thereof required to be disclosed by GAAP. The financial statements referred to
in this Section 3.07 have been prepared in accordance with GAAP consistently
applied. The financial projections referred to in this Section 3.07 present the
Borrower's current estimate of the future financial performance of the Borrower
and its Subsidiaries based on historical performance and the Borrower's
knowledge of its business plans and assumptions underlying them, but subject to
uncertainties applicable to projections of future financial performance.

      SECTION 3.08. Federal Reserve Regulation. Neither the Borrower nor any of
its Subsidiaries is engaged in the business of extending credit for the purpose
of purchasing or carrying Margin Stock, and no part of the proceeds of the Loans
will be used, whether directly or indirectly, and whether immediately,
incidentally or ultimately, (i) to purchase

                                       46
<PAGE>
or carry Margin Stock or to extend credit to others for the purpose of
purchasing or carrying Margin Stock or to refund indebtedness originally
incurred for such purpose, or (ii) for any purpose which entails a violation of,
or which is inconsistent with, the provisions of the Regulations of the Board,
including, without limitation, Regulation T, U or X thereof. If requested by any
Lender, the Borrower and any Subsidiary (other than ACE Funding) thereof shall
furnish to such Lender a statement on Federal Reserve Form U-1 referred to in
said Regulation U.

      SECTION 3.09. Taxes. The Borrower and each of its Subsidiaries has filed
or caused to be filed all federal, state, local, foreign and payroll tax
returns, reports and filings, as the case may be, required to be filed by it, on
or prior to the date hereof, other than tax returns, reports or filings that (a)
are not payroll, franchise, capital or income taxes, (b) in the aggregate are
not material and (c) would not, if unpaid, result in the imposition of any Lien
on any property or assets of the Borrower or any of its Subsidiaries. The
Borrower and each of its Subsidiaries has paid or caused to be paid all taxes
shown to be due and payable on such filed returns, reports or on any assessments
received by it, other than (i) any taxes or assessments the validity of which
the Borrower or such Subsidiary is contesting in good faith by appropriate
proceedings, and with respect to which the Borrower or such Subsidiary has set
aside on its books cash reserves in an amount not less than the aggregate amount
secured by such Liens (including, without limitation, the amount of taxes and
assessments being contested and any interest and penalties payable in respect
thereof) and (ii) taxes other than payroll, income, capital or franchise taxes
that in the aggregate are not material and which would not, if unpaid, result in
the imposition of any Lien on any property or assets of the Borrower or any of
its Subsidiaries. No federal income tax returns of the Borrower or any of its
Subsidiaries have been audited by the United States Internal Revenue Service and
neither the Borrower, nor any of its Subsidiaries has requested or been granted
any extension of time to file any federal, state, local or foreign tax return.

      SECTION 3.10. Employee Benefit Plans. With respect to the provisions of
ERISA:

            (i) No Reportable Event has occurred or is continuing with respect
      to any Pension Plan.

            (ii) To the Borrower's knowledge, no prohibited transaction (within
      the meaning of Section 406 of ERISA or Section 4975 of the Code) has
      occurred with respect to any Plan subject to Part 4 of Subtitle B of Title
      I of ERISA.

            (iii) Neither the Borrower nor any ERISA Affiliate is now, nor has
      been during the preceding five (5) years, obligated to contribute to a
      Pension Plan or a Multiemployer Plan. Neither the Borrower nor any ERISA
      Affiliate has (A) ceased operations at a facility so as to become subject
      to the provisions of Section 4062(e) of ERISA, (B) withdrawn as a
      substantial employer so as to become subject to the provisions of Section
      4063 of ERISA, (C) ceased making contributions to any Pension Plan subject
      to the provisions of Section 4064(a) of

                                       47
<PAGE>
      ERISA to which the Borrower or any ERISA Affiliate made contributions, (D)
      incurred or caused to occur a "complete withdrawal" (within the meaning of
      Section 4203 of ERISA) or a "partial withdrawal" (within the meaning of
      Section 4205 of ERISA) from a Multiemployer Plan that is subject to the
      provisions of Title IV of ERISA so as to incur withdrawal liability under
      Section 4201 of ERISA (without regard to subsequent reduction or waiver of
      such liability under Section 4207 or 4208 of ERISA), or (E) been a party
      to any transaction or agreement under which the provisions of Section 4204
      of ERISA were applicable.

            (iv) No notice of intent to terminate a Pension Plan has been filed,
      nor has any Plan been terminated pursuant to the provisions of Section
      4041 (e) of ERISA.

            (v) The PBGC has not instituted proceedings to terminate (or appoint
      a trustee to administer) a Pension Plan and, to Borrower's knowledge, no
      event has occurred or condition exists which might constitute grounds
      under the provisions of Section 4042 of ERISA for the termination of (or
      the appointment of a trustee to administer) any such Pension Plan.

            (vi) With respect to each Pension Plan that is subject to the
      provisions of Title I, Subtitle B, Part 3 of ERISA, the funding method
      used in connection with such Pension Plan is acceptable under ERISA, and
      the actuarial assumptions and methods used in connection with funding such
      Pension Plan satisfy the requirements of Section 302 of ERISA. The assets
      of each such Pension Plan (other than the Multiemployer Plans) are at
      least equal to the present value of the greater of (i) accrued benefits
      (both vested and non-vested) under such Pension Plan, or (ii) "benefit
      liabilities" (within the meaning of Section 4001(a)(16) of ERISA) under
      such Pension Plan, in each case as of the latest actuarial valuation date
      for such Pension Plan (determined in accordance with the same actuarial
      assumptions and methods as those used by the Pension Plan's actuary in its
      valuation of such Pension Plan as of such valuation date). No such Pension
      Plan has incurred any "accumulated funding deficiency" (as defined in
      Section 412 of the Code), whether or not waived.

            (vii) There are no actions or suits pending (other than routine
      actions for benefits) or, to the knowledge of the Borrower or any of its
      Subsidiaries, which could reasonably be expected to be asserted, against
      any Plan or the assets of any such Plan. No civil or criminal action
      brought pursuant to the provisions of Title I; Subtitle B, Part 5 of ERISA
      is pending or threatened against any fiduciary or any Plan. To the
      knowledge of the Borrower, none of the Plans or any fiduciary thereof (in
      its capacity as such) has been the direct or indirect subject of any
      audit, investigation or examination by any governmental or
      quasi-governmental agency.

            (viii) All of the Plans comply currently, and have complied in the
      past, in all material respects, both as to form and operation, with their
      terms and with the provisions of ERISA and the Code, and all other
      applicable laws, rules and

                                       48
<PAGE>
      regulations; all necessary governmental approvals for the Plans have been
      obtained and a favorable determination as to the qualification under
      Section 401 (a) of the Code of each of the Plans which is an employee
      pension benefit plan (within the meaning of Section 3(2) of ERISA) has
      been made by the Internal Revenue Service and a recognition of exemption
      from federal income taxation under Section 501(a) of the Code of each of
      the funded employee welfare benefit plans (within the meaning of Section
      3(l) of ERISA) has been made by the Internal Revenue Service, and nothing
      has occurred since the date of each such determination or recognition
      letter that would adversely affect such qualification.

      SECTION 3.11. No Material Misstatements. No information, report, financial
statement, exhibit or schedule prepared by or on behalf of the Borrower and
delivered to the Agent or any Lender in connection with any of the American
Capital Transactions, the Credit Transactions, this Agreement or the other
Credit Documents, or included therein, contained or contains any material
misstatement of fact or omitted or omits to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading, when taken as a whole, and as of the date such
information, report, financial statement, exhibit or schedule is or was
prepared.

      SECTION 3.12. Investment Company Act; Public Utility Holding Company Act.
Neither the Borrower nor any of its Subsidiaries is an "investment company" as
defined in, or is otherwise subject to regulation under, the Investment Company
Act of 1940. Neither the Borrower nor any of its Subsidiaries is a "holding
company" as that term is defined in or is otherwise subject to regulation under,
the Public Utility Holding Company Act of 1935.

      SECTION 3.13. Use of Proceeds. The proceeds of each Loan shall be used to
extend and renew in full all Revolving Credit Loans and Seasonal Revolving
Credit Loans outstanding under, and as defined in, the Existing Credit Agreement
and to fund working capital requirements, and for other proper corporate
purposes of the Borrower not otherwise prohibited by the terms hereof. Neither
the Borrower nor any of its Subsidiaries will use proceeds of any Loan for the
purpose of acquiring, or attempting to acquire, control of any Person unless
such acquisition or attempted acquisition is pursuant to an agreement with such
Person or is not resisted by such Person.

      SECTION 3.14. Subsidiaries. Schedule 3.14 hereto sets forth (a) each
Subsidiary of the Borrower, (b) its jurisdiction of incorporation, (c) the
states in which it conducts business, (d) the states in which it is qualified to
transact business, (e) its equity ownership and (f) any trade names used by it.

      SECTION 3.15. Title to Properties; Possession Under Leases; Trademarks.

      (a) The Borrower and each of its Subsidiaries has good and marketable
title to, or valid leasehold interest in, all of its respective properties and
assets shown on the most recent balance sheet referred to in Section 3.07 hereof
and all assets and properties acquired since the date of such balance sheet,
except for such properties as are no longer

                                       49
<PAGE>
used or useful in the conduct of its business or as have been disposed of in the
ordinary course of business, and except for minor defects in title or leasehold
interest that do not interfere in any material respect with the ability of the
Borrower or such Subsidiary to conduct its business as now conducted. All such
assets and properties are free and clear of all Liens other than Permitted
Liens. The Security Documents create and grant to Administrative Agent a valid
and perfected security interest in the Collateral thereunder, subject only to
Permitted Liens.

      (b) The Borrower and each of its Subsidiaries has complied with all
obligations under all leases to which it is a party and under which it is in
occupancy, except where the failure to comply has not or is not reasonably
expected to have a Material Adverse Effect; and all such leases are in full
force and effect and the Borrower and each of its Subsidiaries enjoys peaceful
and undisturbed possession under all such leases.

      (c) (i) The Borrower and each of its Subsidiaries owns or has the right to
use all material permits, trademarks, trademark rights, trade names, trade name
rights, copyrights, patents, patent rights and licenses which are necessary for
the conduct of its business as now conducted, (ii) to the Borrower's knowledge,
neither the Borrower nor any of its Subsidiaries is infringing upon or otherwise
acting adversely to any of such material trademarks, trademark rights, trade
names, trade name rights, copyrights, patent rights or licenses owned by any
other Person or Persons; (iii) there is no suit or action by any such other
Person pending or, to the knowledge of Borrower, threatened in writing against
the Borrower or any of its Subsidiaries with respect to any of the rights or
property referred to in this Section 3.15(c); (iv) Schedule 3.15(c) lists all of
Borrower's trademarks, patents, copyrights, and applications therefor.

      (d) Schedule 3.15(d) lists (i) all Deposit Accounts maintained by Borrower
as of the date hereof, (ii) all Deposit Accounts maintained by Borrower's
Subsidiaries (other than ACE Funding) as of the date hereof, (iii) each armored
courier service that transports Collateral as of the date hereof, and (iv) all
agreements with armored courier services which transport Collateral to which
either the Borrower or a Subsidiary of the Borrower (other than ACE Funding) is
a party as of the date hereof.

      SECTION 3.16. Solvency.

      (a) Without regard to ACE Funding, the present fair salable value of the
assets of the Borrower and its Consolidated Subsidiaries is not less than the
amount that will be required to be paid on or in respect of the probable
liability on the existing debts and other liabilities (including contingent
liabilities) of the Borrower and its Consolidated Subsidiaries, as they become
absolute and mature.

      (b) Without regard to ACE Funding, the assets of the Borrower and its
Consolidated Subsidiaries do not constitute unreasonably small capital for the
Borrower and its Consolidated Subsidiaries to carry out their business as now
conducted and as now proposed to be conducted including the capital needs of the
Borrower and its

                                       50
<PAGE>
Consolidated Subsidiaries, taking into account the particular capital
requirements of the business conducted, by the Borrower and its Consolidated
Subsidiaries and projected capital requirements and capital availability
thereof.

      (c) Without regard to ACE Funding, neither the Borrower nor any of its
Consolidated Subsidiaries intends to incur debts beyond its ability to pay such
debts as they mature. Without regard to ACE Funding, the cash flow of the
Borrower and its Consolidated Subsidiaries, after taking into account all
currently anticipated uses of the cash of the Borrower and its Consolidated
Subsidiaries, will be sufficient to pay all such amounts on or in respect of
debt of the Borrower and its Consolidated Subsidiaries when such amounts are
required to be paid.

      (d) Neither the Borrower nor any of its Consolidated Subsidiaries believes
that final judgments against it in actions for money damages presently pending
will be rendered at a time when, or in an amount such that, it will be unable to
satisfy any such judgments promptly in accordance with their terms (taking into
account the maximum reasonable amount of such judgments in any such actions and
the earliest reasonable time at which such judgments might be rendered). Without
regard to ACE Funding, the cash flow of the Borrower and its Consolidated
Subsidiaries, after taking into account all other anticipated uses of the cash
of the Borrower and its Consolidated Subsidiaries (including the payments on or
in respect of debt referred to in paragraph (c) of this Section 3.16), will at
all times be sufficient to pay all such judgments promptly in accordance with
their terms.

      SECTION 3.17. Permits, Etc. The Borrower and each of its Subsidiaries
possesses all licenses, permits, approvals and consents of all federal, state
and local governmental authorities as required to lawfully conduct its business,
except where the failure to obtain any such license, permit, approval or consent
does not or is not likely to have a Material Adverse Effect.

      SECTION 3.18. Compliance with Environmental Laws. Except as disclosed on
Schedule 3.18 (a) neither the Borrower nor any of its Subsidiaries, or to the
best of Borrower's knowledge after due investigation, no other Person
(including, without limitation, any previous owner, lessor or sublessor of
property of the Borrower or any of its Subsidiaries), has generated, used,
treated, stored, released or disposed of Hazardous Materials or other toxic
substances on any of its properties or any of the properties (whether owned,
leased, subleased or used by such Person) in violation of any Environmental
Legislation and (b) to the best of the Borrower's knowledge after due
investigation, there has been no spill, release, disposal or any other discharge
of Hazardous Materials or other toxic substances on or from any properties
owned, leased, subleased or used by the Borrower or any of its Subsidiaries
that, in any such case, could reasonably be expected to subject the Borrower,
any of its Subsidiaries or any shareholders of any thereof to material
liability.

      SECTION 3.19. Labor Matters.

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<PAGE>
            (i) The Borrower and each of its Subsidiaries has complied in all
      material respects with all applicable laws relating to the employment of
      labor, including provisions relating to wages, hours, equal opportunity,
      collective bargaining, age and sex discrimination and the withholding and
      payment of social security and other Taxes.

            (ii) There have not been any material labor problems or work
      stoppages involving the Borrower or any of its Subsidiaries or, to the
      knowledge of the Borrower, any application filed by a union or employee
      thereof with the National Labor Relations Board.

            (iii) To the knowledge of the Borrower, there are no (a) unfair
      labor practice charges or complaints pending or threatened against the
      Borrower or any of its Subsidiaries; (b) labor strikes, disputes, slow
      downs or stoppages pending or threatened against the Borrower or any of
      its Subsidiaries; (c) formal employee grievances filed with or against the
      Borrower or any of its Subsidiaries or threatened against the Borrower or
      any of its Subsidiaries; and (d) trade union organizing efforts underway
      in any facility of the Borrower or any of its Subsidiaries.

            (iv) Neither the Borrower nor any of its Subsidiaries has violated,
      has liability under, or has received a written notice or charge asserting
      any violation of or liability under, the federal Occupational Safety and
      Health Act of 1970 or any other federal, state or foreign acts (including
      rules and regulations thereunder) regulating or otherwise affecting
      employee health and safety.

            (v) To the knowledge of the Borrower, there are no uninsured
      workers' compensation claims pending or threatened against the Borrower or
      any of its Subsidiaries. Neither the Borrower nor any of its Subsidiaries
      is liable for any retroactive workers' compensation insurance premiums
      relating to any period of time prior to the Closing Date in excess of
      reserves set aside for the payment of such premiums on the Borrower's
      latest audited financial statements.

            (vi) To the knowledge of the Borrower without independent inquiry,
      none of the Borrower's or any of its Subsidiary's employees or partners is
      subject to any secrecy or noncompetition agreement or any other agreement
      or restriction of any kind that would impede their ability to carry out
      the responsibilities of such Person to the Borrower or its Subsidiaries.

            (vii) The qualifications for employment of each of the Borrower's
      and its Subsidiaries' employees under applicable immigration laws have
      been reviewed by the Borrower or the applicable Subsidiary and a properly
      completed Form I-9 is on file with the Borrower or the applicable
      Subsidiary for each employee. The Borrower and each of its Subsidiaries
      has complied with the U.S. Immigration and Nationality Act, as amended
      from time to time, and the rules and regulations promulgated thereunder,
      and to the knowledge of the Borrower, there

                                       52
<PAGE>
      is no basis for any claim that the Borrower or any of its Subsidiaries is
      not in compliance with the terms thereof.

      SECTION 3.20. Side Agreements. Neither the Borrower, its Subsidiaries, nor
any their Affiliates, nor any director, officer or employee of the Borrower, its
Subsidiaries, or any of their Affiliates, respectively, has entered into, as of
the date hereof, any side agreement, either oral or written, with any individual
or business, pursuant to which the director, officer, employee, the Borrower,
any Subsidiary of the Borrower, or any or their Affiliates agreed to do anything
beyond the requirements of the formal, written contracts executed by the
Borrower or its Subsidiaries and disclosed to Agent and Lenders herein.

      SECTION 3.21. GENERAL. THERE ARE NO MATERIAL FACTS OR CONDITIONS RELATING
TO THE CREDIT DOCUMENTS, ANY OF THE COLLATERAL, THE FINANCIAL CONDITION OR THE
BUSINESS OF THE BORROWER OR ANY OF ITS SUBSIDIARIES WHICH COULD, INDIVIDUALLY OR
COLLECTIVELY, CAUSE A MATERIAL ADVERSE EFFECT WHICH HAVE NOT BEEN RELATED IN
WRITING TO THE LENDERS. ALL WRITINGS HERETOFORE OR HEREAFTER EXHIBITED OR
DELIVERED TO THE AGENT OR ANY LENDER BY OR ON BEHALF OF BORROWER OR ANY OF ITS
SUBSIDIARIES ARE AND WILL BE GENUINE AND IN ALL RESPECTS WHAT THEY PURPORT AND
APPEAR TO BE.

                     ARTICLE IV. CONDITIONS OF CREDIT EVENTS

      The obligation of each Lender to make Loans shall be subject to the
following conditions precedent:

      SECTION 4.01. All Credit Events. On each date on which a Credit Event is
to occur:

      (a) The Agent shall have received a Borrowing Notice as required by
Section 2.03 or Section 2.14 hereof, as applicable.

      (b) The representations and warranties set forth in Article III hereof and
in any documents delivered herewith shall be true and correct in all material
respects with the same effect as though made on and as of such date (except
insofar as such representations and warranties relate expressly to an earlier
date).

      (c) The Borrower shall be in compliance with all the terms and provisions
contained herein on its part to be observed or performed, and at the time of and
immediately after such borrowing or issuance of such Letter of Credit no Default
or Event of Default shall have occurred and be continuing.

      SECTION 4.02. First Credit Event. The obligation of each Lender in respect
of the first Credit Event is subject to the following additional conditions
precedent:

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<PAGE>
      (a) The Lenders shall have received the favorable written opinion of
counsel for the Borrower and each of the Guarantors, dated the Closing Date,
addressed to the Lenders and satisfactory to the Agent and its counsel.

      (b) The Agent shall have received (i) a copy of the certificate or
articles of incorporation or constitutive documents, in each case as amended, of
the Borrower and each of the Guarantors and a certificate as to the good
standing of each such Person from the Secretary of State or other appropriate
official of the state of such Person's organization, in each case dated as of a
recent date; (ii) a certificate of the Secretary of the Borrower and each of the
Guarantors, dated the Closing Date and certifying (A) that attached thereto is a
true and complete copy of its bylaws as in effect on the date of such
certificate and at all times since a date prior to the date of the resolution
described in clause (B) below, (B) that attached thereto is a true and complete
copy of a resolution adopted by its Board of Directors authorizing the
execution, delivery and performance of the Credit Documents to which it is a
party, and that such resolution has not been modified, rescinded or amended and
is in full force and effect, (C) that its certificate or articles of
incorporation or constitutive documents have not been amended since the date of
the last amendment thereto shown on the certificate of good standing furnished
pursuant to clause (i) above, and (D) as to the incumbency and specimen
signature of each of its officers executing the Credit Documents to which it is
a party; (iii) a certificate of another of its officers as to incumbency and
signature of its Secretary; and (iv) such other documents as the Agent, the
Agent's legal counsel or any Lender may reasonably request.

      (c) The Agent shall have received certificates, dated the Closing Date and
the date of the first Credit Event and signed by a Responsible Officer of the
Borrower, confirming compliance with the conditions precedent set forth in
paragraphs (b) and (c) of Section 4.01 hereof and the conditions set forth in
this Section 4.02, which certificate shall include a schedule with calculations
demonstrating the Borrower's compliance with the covenants contained in Sections
6.07, 6.08, 6.09, and 6.10 hereof as of the most recent accounting period for
which financial statements would be required hereunder.

      (d) Each Lender requesting the same shall have received its Revolving
Credit Note and its Seasonal Revolving Credit Note duly executed by the Borrower
payable to its order and otherwise complying with the provisions of Section 2.04
hereof.

      (e) The Agent and the Lenders shall have received and determined to be in
form and substance satisfactory to them (i) copies of the financial statements
described in Section 3.07 hereof; and (ii) the Agent shall be satisfied that the
American Capital Transactions and the Credit Transactions are in compliance with
all applicable laws and regulations.

      (f) The Agent and the Administrative Agent shall have received evidence,
in form and substance satisfactory to the Agent and the Administrative Agent,
that the Administrative Agent has valid and first priority security interests in
and Liens upon the

                                       54
<PAGE>
Collateral and any other property which is intended to be security for the
Obligations in accordance with the terms of the Security Documents, subject only
to Permitted Liens.

      (g) The Agent shall have received, in form and substance satisfactory to
the Agent and the Administrative Agent, all consents, waivers, acknowledgments
and other agreements from third Persons which the Agent or the Administrative
Agent may deem necessary or desirable in order to permit, protect and perfect
the Administrative Agent's security interests in and Liens upon the Collateral
or to effectuate the provisions or purposes of this Agreement and the other
Credit Documents.

      (h) The Agent shall have received Borrower's Form 10-K filed with the
Securities Exchange Commission for the period ending June 30, 2002 and
Borrower's Form 10-Q filed with the Securities and Exchange Commission for the
periods ending September 30, 2002 and December 31, 2002.

      (i) The Lenders, the Agent, and its counsel shall have received all fees
required to be paid by the Borrower, and payment in full of all expenses for
which the Borrower is liable and for which invoices have been presented.

      (j) All governmental and third party approvals necessary or advisable in
connection with the financing contemplated hereby and by the American Capital
Notes and the continuing operations of the Borrower and its Subsidiaries shall
have been obtained, and delivered to Agent and be in full force and effect, to
the extent that a failure to obtain the same could reasonably be expected to
have a Material Adverse Effect;

      (k) The placement and funding of the American Capital Notes shall have
occurred concurrently with the execution and delivery of the Credit Documents.

      (l) The Credit Documents and all instruments and documents hereunder and
thereunder shall have been duly executed by the parties thereto and delivered to
the Agent, in form and substance satisfactory to the Agent and the
Administrative Agent.

      (m) Agent shall have received copies of the American Capital Agreement and
the American Capital Notes, executed and delivered by all parties thereto.

      (n) (i) Travelers shall have released all Liens which encumber Collateral
that run in its favor (or included such provisions in the Intercreditor
Agreement), which were granted under the Money Order Agreement, and all existing
financing statements which relate to such Liens shall have been terminated and
(ii) all other Liens encumbering the Collateral, other than Permitted Liens,
shall have been released and all existing financing statements which relate to
such Liens shall have been terminated.

      (o) The Borrower and certain of its Subsidiaries other than ACE Funding
shall have duly executed and delivered to the Administrative Agent a Stock
Pledge Agreement pledging the stock of each direct and indirect Subsidiary of
the Borrower (other than ACE Funding).

                                       55
<PAGE>
      (p) The Agent shall have received the Collateral Agency Agreement, duly
executed by the Borrower, Travelers, American Capital Agent, and the Collateral
Agent.

      (q) The Agent shall have received the Intercreditor Agreement, duly
executed by the Borrower, Travelers, and American Capital Agent.

      (r) The Agent and the Lenders shall be satisfied that there are no
actions, suits or proceedings at law or in equity or by or before any
governmental instrumentality or other agency or regulatory authority now pending
or threatened against or affecting the Borrower or any of its Subsidiaries or
any of their respective businesses, assets or rights which would materially and
adversely affect any of the Credit Transactions or the American Capital
Transactions.

      (s) Borrower shall have used its best efforts to cause all financial
institutions at which Borrower's and its Subsidiaries' (other than ACE Funding)
deposits are maintained to have executed and delivered a Letter Agreement
substantially in the form of Exhibit F-1 or F-2 attached hereto, and Agent shall
be satisfied that a sufficient number of such financial institutions have
executed and delivered such a Letter Agreement.

      (t) Borrower shall have used its best efforts to cause all armored
couriers which transport cash and checks for the Borrower and its Subsidiaries
(other than ACE Funding) to have executed and delivered a Letter Agreement
substantially in the form of Exhibit G attached hereto, and Agent shall be
satisfied that a sufficient number of such. armored couriers have executed and
delivered such a Letter Agreement.

      (u) The Borrower and its Subsidiaries (other than ACE Funding) shall have
delivered to the Agent a Borrowing Base Report and a certificate of a
Responsible Officer of the Borrower certifying: (i) the account number of each
deposit account in which such Persons maintain deposits; (ii) the correct legal
name of each financial institution which maintains each such deposit account;
(iii) whether each such financial institution has executed a Letter Agreement;
(iv) the name of each armored courier which transports cash and checks for such
Persons; and (v) whether such armored courier has executed a Letter Agreement.

      (v) The Agent shall have received the Global Assignment and Assumption,
duly executed by each party thereto.

      (w) The Agent shall have received evidence that the Senior Secured Notes
shall have been (i) paid in full or (ii) defeased in full.

      (x) All other legal matters in connection with the Credit Transactions and
the American Capital Transactions shall be satisfactory to the Agent, the
Lenders and their respective legal counsel.

      (y) The Agent shall have received such other documents as the
Administrative Agent, the Agent, or the Agent's legal counsel shall reasonably
deem necessary.

                                       56
<PAGE>
                        ARTICLE V. AFFIRMATIVE COVENANTS

      The Borrower covenants and agrees with each Lender that, so long as this
Agreement shall remain in effect, or the principal of or interest on any Loan or
Note, Commitment Fee or any fee, expense or amount payable hereunder or in
connection with any of the Credit Transactions shall be unpaid, unless the
Required Lenders shall otherwise consent in writing, it will, and will cause
each of its Subsidiaries and, with respect to Section 5.07 hereof, each ERISA
Affiliate to:

      SECTION 5.01. Legal Existence. Do or cause to be done all things necessary
to preserve, renew and keep in full force and effect its legal existence, except
as otherwise permitted under Section 6.05 hereof and except for the dissolution
or other cessation of existence of any Subsidiary of the Borrower which the
Borrower has determined to be unnecessary for the conduct of its business.

      SECTION 5.02. Businesses and Properties. At all times (a) do or cause to
be done all things necessary to preserve, renew and keep in full force and
effect the rights, licenses, permits, franchises, patents, copyrights,
trademarks and trade names material to the conduct of its businesses; (b)
maintain and operate such businesses in the same general manner in which they
are presently conducted and operated; (c) comply with all laws, rules,
regulations and governmental orders (whether federal, state or local) applicable
to the operation of such businesses, whether now in effect or hereafter enacted
(including, without limitation, all applicable laws, rules, regulations and
governmental orders relating to environmental protection and to public and
employee health and safety) the lack of compliance with which could reasonably
be expected to have a Material Adverse Effect; (d) take all actions which may be
required to obtain, preserve, renew and extend all licenses, permits, franchises
and other authorizations which are material to the operation of such businesses;
and (e) at all times maintain, preserve and protect all property material to the
conduct of such businesses and keep such property in good repair, working order
and condition and from time to time make, or cause to be made, all needful and
proper repairs, renewals, additions, improvements and replacements of such
property necessary in order to continue its business as currently conducted.
Without limitation of the foregoing, after Borrower obtains knowledge that it
does not have a license, permit, or other authorization from a Governmental
Authority to conduct any facet of its or any of its Subsidiary's (other than ACE
Funding) business, Borrower shall (i) apply for such license, permit, or other
authorization within the earlier of (A) 30 days after Borrower obtains such
knowledge or (B) the date stated by any Governmental Authority before which
Borrower is required to apply for such license, permit, or other authorization
and (ii) diligently thereafter pursue the obtaining of such license, permit, or
other authorization.

      SECTION 5.03. Insurance. (a) Keep its insurable properties adequately
insured at all times by financially sound and reputable insurers, (b) maintain
such other insurance, to such extent and against such risks, including casualty
and business interruption and other risks insured against by extended coverage,
as is customary with companies similarly situated and in the same or similar
businesses, naming Administrative Agent as

                                       57
<PAGE>
loss payee and additional insured, (c) maintain in full force and effect public
liability insurance against claims for personal injury or death or property
damage occurring upon, in, about or in connection with the use of any properties
owned, occupied or controlled by the Borrower or any of its Subsidiaries, in
such amount as the Borrower or such Subsidiary shall reasonably deem necessary
and, as to Borrower and its Subsidiaries other than ACE Funding, naming Lenders
as loss payee and additional insured, and (d) maintain such other insurance as
may be required by law or as may be reasonably requested by the Administrative
Agent for purposes of assuring compliance with this Section 5.03, and naming
Administrative Agent as loss payee and additional insured.

      SECTION 5.04. Taxes. Pay and discharge promptly when due all taxes,
assessments and governmental charges or levies imposed upon it or upon its
income or profits or in respect of its property before the same shall become
delinquent or in default, as well as all lawful claims for labor, materials and
supplies or otherwise, which, if unpaid, might give rise to Liens upon such
properties or any part thereof, other than any taxes or assessments the validity
of which is being contested by it in good faith by appropriate proceedings, and
with respect to which it has set aside on its books cash reserves in an amount
not less than the aggregate amount secured by such Liens (including, without
limitation, the amount of taxes and assessments being contested and any interest
and penalties payable in respect thereof). The Borrower and each of its
Subsidiaries promptly shall make all required payments, deposits and filings
with respect to payroll tax reporting and liability when due.

      SECTION 5.05. Financial Statements, Reports, Etc. Furnish to the Agent and
each Lender:

      (a) within ninety (90) days after the end of each Fiscal Year or such
earlier time as the same are required to be filed with the Securities and
Exchange Commission under applicable law, audited Consolidated and unaudited
consolidating, balance sheets and statements of income, expenses and retained
earnings, showing the Consolidated financial condition of the Borrower and its
Consolidated Subsidiaries (including, in each case, ACE Funding) as of the close
of such Fiscal Year and the results of their operations during such year, and
audited Consolidated statements of shareholders' equity and cash flow of the
Borrower and its Consolidated Subsidiaries as of the close of such Fiscal Year,
all the foregoing financial statements referred to above to be in reasonable
detail and stating in comparative form the figures as at the end of and for the
previous Fiscal Year and to be audited by independent public accountants of
recognized national standing acceptable to the Agent, which report shall not
contain any qualification except with respect to new accounting principles
mandated by the Financial Accounting Standards Board and be in form reasonably
acceptable to the Agent, together with a copy of the Borrower's SEC Form 10-K
filed for such prior Fiscal Year;

      (b) within forty-five (45) days after the end of each quarter (except for
any quarters ending on the last day of a Fiscal Year) in each Fiscal Year,
unaudited Consolidated and, if requested by Agent, consolidating balance sheets
and statements of income, expenses and retained earnings showing the
Consolidated financial condition of

                                       58
<PAGE>
the Borrower and its Consolidated Subsidiaries (including, in each case, ACE
Funding) as of the end of each such fiscal quarter and the results of operations
of the Borrower and its Consolidated Subsidiaries as of the end of each such
fiscal quarter, and unaudited Consolidated statements of shareholders' equity
and cash flow of the Borrower and its Consolidated Subsidiaries as of the end of
each such fiscal quarter, each of the foregoing financial statements referred to
above to be in reasonable detail and stating in comparative form the figures as
at the end of and for the comparable periods of the preceding Fiscal Year and to
be prepared and certified by a Responsible Officer of the Borrower as presenting
fairly in all material respects the Consolidated financial condition and results
of operations of the Borrower and its Consolidated Subsidiaries and as having
been prepared in accordance with GAAP consistently applied, in each case subject
to normal year-end audit adjustments and the absence of footnotes, together with
a copy of the Borrower's SEC Form 10-Q filed for such fiscal quarter;

      (c) concurrently with any delivery of (i) audited financial statements as
of the close of each of the Borrower's Fiscal Years pursuant to clause (a)
above, and (ii) unaudited financial statements as of the close of each of the
Borrower's fiscal quarters pursuant to clause (b) above, a Compliance
Certificate by a Responsible Officer of the Borrower, together with computations
and work papers demonstrating compliance, as of the dates of the financial
statements being furnished at such time, with the financial covenants set forth
in Section 6.07 through 6.10 hereof;

      (d) no later than 3:00 p.m. Dallas, Texas time on Wednesday of each week,
a Borrowing Base Report covering the period from Sunday of the prior week
through Saturday of such prior week and a Cash Holdings Report as of the last
day of such period, each certified by a Responsible Officer of the Borrower;

      (e) copies of such registration statements, annual, periodic and other
reports, and such proxy statements, financial information and other information,
if any, as shall be filed by the Borrower or any of its Subsidiaries with the
Securities and Exchange Commission pursuant to the requirements of the
Securities Act of 1933 or the Securities Exchange Act of 1934, as soon as
possible after such statements or information are publicly available;

      (f) within thirty (30) days after the beginning of each Fiscal Year,
commencing with Borrower's Fiscal Year beginning July 1, 2003, financial
operation projections for the Borrower and its Subsidiaries for the next three
(3) Fiscal Years and projections for the first such Fiscal Year on a quarterly
basis prepared by management and in form consistent with the financial
projections provided prior to the Closing Date, accompanied by a written
certificate signed by the chief financial officer of Borrower to the effect that
such projections have been prepared on the basis of the Borrower's historical
Consolidated financial statements and records, together with the assumptions set
forth in such projections, and that such projections reasonably reflect the
expectations, after considered analysis, of the Borrower's management as to the
matters set forth therein;

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      (g) promptly upon a Responsible Officer of the Borrower becoming aware
thereof, notice to the Agent of the breach by any party of any material
agreement with the Borrower or any of its Subsidiaries;

      (h) promptly upon a Responsible Officer of the Borrower becoming aware
thereof, notice to the Agent of any "default" or "event of default" under any
other agreement, document or instrument representing Indebtedness in excess of
one million dollars ($1,000,000) (including but not limited to the American
Capital Agreement);

      (i) all management reports delivered to Borrower in connection with the
financial statements delivered pursuant to Section 5.05(a);

      (j) promptly upon receipt of request from Agent, copies of all
information, notices, and reports provided to, or received from, American
Capital Agent or the holders of the American Capital Notes under the American
Capital Agreement;

      (k) prior to the consummation of the same, written notice of (i) all
issuances or sales of Equity Interests permitted under Section 6.04 and (ii) all
asset sales that are permitted under Section 6.05;

      (l) within ten (10) days after the end of each month, a Certificate of
Update; and

      (m) such other information as the Agent or any Lender may reasonably
request.

      SECTION 5.06. Litigation and Other Notices. Give the Agent written notice
promptly after a Responsible Officer of the Borrower becoming aware thereof, but
in any event within five (5) Business Days, of the following:

      (a) the issuance by any court or governmental agency or authority of any
injunction, order, decision or other restraint against the Borrower or a
Guarantor prohibiting, or having the effect of prohibiting, the making of the
Loans, or invalidating, or having the effect of invalidating, any provision of
this Agreement, any of the Loans, any of the Notes, any other Credit Document or
the first priority Lien of the Agent on the Collateral or the initiation of any
litigation or similar proceeding seeking any such injunction, order, decision or
other restraint;

      (b) the filing or commencement of any action, suit or proceeding against
the Borrower or any of its Subsidiaries, whether at law or in equity or by or
before any court or any federal, state, municipal or other governmental agency
or authority which, if adversely determined, could reasonably be expected to:
(i) result in liability of the Borrower or any of its Subsidiaries in an amount
of one million five hundred thousand dollars ($1,500,000) or more; or (ii) have
a Material Adverse Effect if there were an adverse determination against the
Borrower or any Subsidiary;

      (c) any Default or Event of Default, specifying the nature and extent
thereof and the action (if any) which is proposed to be taken with respect
thereto; and

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      (d) any development in the business or affairs of the Borrower or any of
its Subsidiaries which management reasonably expects could have a Material
Adverse Effect.

      SECTION 5.07. ERISA.

      (a) Pay and discharge promptly any liability imposed upon it pursuant to
the provisions of Title IV of ERISA; provided, however, that neither the
Borrower nor any ERISA Affiliate shall be required to pay any such liability if
(i) the amount, applicability or validity thereof shall be diligently contested
in good faith by appropriate proceedings, and (ii) such Person shall have set
aside on its books reserves which, in the opinion of a Responsible Officer of
such Person, are adequate with respect thereto.

      (b) Deliver to the Agent, promptly, and in any event within thirty (30)
days, after (i) the Borrower becomes aware of the occurrence of any Reportable
Event, a copy of the materials that are filed with the PBGC, or the materials
that would have been required to be filed if the thirty-day notice requirement
to the PBGC was not waived, (ii) the Borrower or any ERISA Affiliate or an
administrator of any Pension Plan files with participants, beneficiaries or the
PBGC a notice of intent to terminate any such Plan, a copy of any such notice,
(iii) the Borrower or any ERISA Affiliate or an administrator of any Pension
Plan receives notice from the PBGC of the PBGC's intention to terminate any
Pension Plan or to appoint a trustee to administer any such Plan, a copy of such
notice, (iv) the Borrower or any ERISA Affiliate knows of any event or condition
which could reasonably be expected to constitute grounds under the provisions of
Section 4042 of ERISA for the termination of (or the appointment of a trustee to
administer) any Pension Plan, an explanation of such event or condition, (v) the
receipt by the Borrower or any ERISA Affiliate receives an assessment of
withdrawal liability under Section 4201 of ERISA from a Multiemployer Plan, a
copy of such assessment, (vi) the Borrower or any ERISA Affiliate knows of any
event or condition which could reasonably be expected to cause any one of them
to incur a liability under Section 4062, 4063, 4064 or 4069 of ERISA or Section
412(n) or 4971 of the Code, an explanation of such event or condition, and (vii)
the Borrower or any ERISA Affiliate knows that an application is to be, or has
been, made to the Secretary of the Treasury for a waiver of the minimum funding
standard under the provisions of Section 412 of the Code, a copy of such
application, and in each case described in clauses (i) through (iii) and clauses
(iv) through (vi) together with a statement signed by a Responsible Officer
setting forth details as to such Reportable Event, notice, event or condition
and the action which the Borrower or such ERISA Affiliate proposes to take with
respect thereto; provided, however, that the Borrower shall not have any
reporting obligation under this Section 5.07 with respect to any Reportable
Event, notice, event or condition which, when taken together with all other
Reportable Events, notices, events or conditions, could subject the Borrower or
any ERISA Affiliate to any taxes, penalties or other liabilities which could not
reasonably be expected to have a material adverse effect on the financial
condition of the Borrower or any ERISA Affiliate.

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      SECTION 5.08. Maintaining Records; Access to Properties and Collateral;
Inspections. Maintain financial records in accordance with accepted financial
practices and, upon prior written notice, permit any authorized representative
designated by Agent to visit and inspect Borrower's locations and the Collateral
subject to and consistent with the Borrower's security practices) during regular
business hours and the financial records of the Borrower and its Subsidiaries,
and permit any authorized representative designated by Agent to discuss the
affairs, finances and condition of the Borrower with its Responsible Officers
and its independent public accountants, as applicable. At the Borrower's expense
(which expense shall not, prior to the occurrence of any Default or Event of
Default, exceed $5,000 during any Fiscal Year), the Agent or Agent's designee
shall have the right to inspect, verify, and audit, up to two times annually
(or, upon the occurrence and during the continuance of an Event of Default, as
often as the Agent may request), the existence and condition of the Collateral
and the books and records of the Borrower and its Subsidiaries and their
compliance with the terms and conditions of this Agreement and the other Credit
Documents. The Required Lenders shall have the right to cause the Agent to
conduct any such inspection and verification upon written request.
Notwithstanding anything to the contrary contained herein, the Lenders and the
Agent agree to make reasonable efforts to coordinate each of the foregoing
visits and inspections through the Agent.

      SECTION 5.09. Use of Proceeds. Use the proceeds of the Revolving Credit
Loans and the Seasonal Revolving Credit Loans as set forth in Section 3.13
hereof and only for such purposes.

      SECTION 5.10. [RESERVED].

      SECTION 5.11. Additional Guarantors and Pledge of Assets. Inform the Agent
within five (5) Business Days before the creation or acquisition of any direct
or indirect Subsidiary. The Borrower and the Lenders intend that any such new
Subsidiary of the Borrower shall obtain the benefit of the Total Commitment and
shall become a Guarantor pursuant to terms similar to each Guarantor on the date
hereof. Within fifteen (15) Business Days from the acquisition or formation of
any such additional Subsidiary, the Borrower shall cause such Subsidiary (a) to
promptly execute, in form and substance satisfactory to the Agent, all documents
necessary for such Subsidiary to become a Guarantor hereunder (including a
Guaranty Agreement substantially in the form executed by the Guarantors as of
the Closing Date), and (b) to effect such Subsidiary's conveyance of a first
priority Lien in its assets (subject only to Permitted Liens) in favor of the
Agent for the benefit of the Lenders securing the Obligations pursuant to the
Security Documents. Any such additional Subsidiary's assets shall thereupon
become part of the Collateral, and such Subsidiary's Cash Holdings (and other
assets described in Section 1 of the Borrowing Base Report) shall thereupon
become part of the Borrowing Base; provided, however, that the Agent may, in its
sole discretion, audit and inspect such Subsidiary's assets (including, without
limitation, such Subsidiary's Cash Holdings) at the Borrower's expense, and, if
the results of such audit and inspection are not satisfactory to the Agent in
its sole discretion, such Subsidiary's Cash Holdings shall no longer be part of
the Borrowing Base. The Required Lenders shall have the right to cause the Agent
to

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conduct such an audit and inspection upon written request and such audits and
inspections shall be in addition to the audits described in Section 5.08 hereof.
In addition, within fifteen (15) Business Days from the acquisition or formation
of any additional Subsidiary of the Borrower, the Borrower shall execute, or
shall cause its Subsidiary to execute, as applicable, all documents (including a
Stock Pledge Agreement in form and content substantially similar to other Stock
Pledge Agreements executed on the Closing Date) necessary to effect the
Borrower's or such Subsidiary's, as applicable, conveyance of a first priority
Lien in the capital stock of such additional Subsidiary in favor of the Agent
for the benefit of the Lenders securing the Obligations, and such additional
Subsidiary's capital stock shall thereupon become part of the Collateral. If
reasonably requested by the Agent, the Borrower shall cause its legal counsel to
deliver to the Agent, simultaneously with the Credit Documents referred to in
this Section 5.11, a legal opinion containing opinions reasonably requested by
the Agent with respect to, if applicable, (i) the stock or asset acquisition,
(ii) the formation of such Subsidiary, (iii) the pledge of such Subsidiary's
capital stock to the Agent, (iv) the pledge of acquired assets to the Agent and
the perfection of the Agent's security interest therein, (v) the addition of
such Subsidiary as a Guarantor, and (vi) such other matters reasonably related
thereto; such legal opinion to be in form and substance satisfactory to the
Agent.

      SECTION 5.12. Environmental Legislation.

      (a) Comply in all material respects with all federal, state and local laws
or regulations applicable to it that have been enacted or adopted regulating the
discharge of substances into the environment or primarily for the purpose of
protecting the environment ("Environmental Legislation"), and provide written
notice to the Agent within five (5) days of the receipt by any Responsible
Officer of the Borrower of any notice of any violation of any Environmental
Legislation from any federal, state or local governmental authority charged with
enforcing such Environmental Legislation, which violation alone, or together
with other such violations, notice of which has been previously or concurrently
received, does have or could reasonably be expected to have a Material Adverse
Effect.

      (b) In the event that any investigation, site monitoring, containment,
cleanup, removal, restoration or other remedial work of any kind or nature
("Remedial Work") with respect to any of the properties of the Borrower or any
of its Subsidiaries (whether owned, leased, subleased or used by such Person) is
required to be performed by the Borrower or any of its Subsidiaries under any
applicable local, state or federal law or regulation, any judicial order, or by
any governmental entity because of, or in connection with, the current or future
presence, suspected presence, release or suspected release of a hazardous
substance in or into the air, soil, groundwater, surface water or soil vapor,
commence all such Remedial Work for which the Borrower or such Subsidiary is
legally responsible under applicable federal, state or local law at or prior to
the time required therefor under applicable laws, regulations or orders and
thereafter diligently prosecute to completion all such Remedial Work in
accordance with and within the time allowed under such applicable laws,
regulations or orders of such governmental or nongovernmental entity, except
where the necessity of the conduct of Remedial Work or

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obligation of Borrower is being contested in good faith in the manner provided
by law or would not reasonably be expected to have a Material Adverse Effect.

      SECTION 5.13. Pay Obligations to Lenders and Perform Other Covenants. Make
full and timely payment of the Obligations, whether now existing or hereafter
arising, and duly comply with all the terms and covenants contained in this
Agreement (including, without limitation, the borrowing limitations and
mandatory prepayments in accordance with Article II hereof) or in any other
Credit Document at the times and places and in the manner set forth herein or
therein, as applicable.

      SECTION 5.14. Assurances. Promptly execute and deliver any and all other
and further agreements, documents, instruments, and other writings which may be
requested by the Agent in good faith to cure any defect in the execution and
delivery of any Credit Document or more fully to describe particular aspects of
the agreements set forth in the Credit Documents or intended to be set forth.
Without limitation of the foregoing, the Borrower shall use its best efforts to
deliver to Agent (i) Letter Agreements, substantially in the forms of Exhibit
F-1 and F-2 attached hereto, duly executed by the Agent, the Borrower and
depository institutions where the Borrower deposits its cash, checks or other
remittances and (ii) Letter Agreements, substantially in the form of Exhibit G
attached hereto, duly executed by the Agent, the Borrower and armored car
companies that transport Company's cash, checks or other remittances.

      SECTION 5.15. Certain Changes. Notify the Agent at least thirty (30) days
prior to the date that any of the Borrower or any Guarantor changes its name or
the location of its chief executive office or principal place of business or the
place where it keeps its books and records or the location of any of the
Collateral.

      SECTION 5.16. Assignment of Leases. At the request of Required Lenders, or
after the occurrence of an Event of Default at the request of Agent, promptly
execute and deliver, in form and substance satisfactory to Agent, assignments of
leases and/or leasehold deeds of trust with respect to any real property leases
of office space or real property leases covering any of Borrower's or its
Subsidiaries' stores; provided, however, that Borrower and its Subsidiaries
shall not be required to deliver an assignment of lease with respect to any
particular lease of office space or store if (i) the consent of the relevant
landlord is required as a condition to such assignment, and (ii) despite its
best efforts to do so, Borrower or its Subsidiary, as the case may be, is unable
to obtain such consent from the relevant landlord.

      SECTION 5.17. Third-Party Payables. Pay, or otherwise perform in respect
of, all Third-Party Payables in accordance with the terms and provisions of the
agreements governing or otherwise relating to such Third-Party Payables.

      SECTION 5.18. Interest Rate Hedging. From and after July 1, 2003, cause an
amount equal to or greater than the Acceptable Sum of the principal amount of
the sum of all Funded Indebtedness of the Borrower and its Subsidiaries (other
than ACE Funding) to (i) bear interest at a fixed rate or (ii) be subject to a
Hedging Contract that is an

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Acceptable Hedging Contract, each for a minimum term of one year. As used
herein, "Acceptable Hedging Contract" shall mean a Hedging Contract entered into
by the Borrower or one of its Subsidiaries (other than ACE Funding) with the
purpose and effect of fixing interest rates on a principal amount of
Indebtedness of such Person that is accruing interest at a variable rate,
provided that (i) the aggregate notional amount of such Hedging Contract never
exceeds one hundred percent (100%) of the anticipated outstanding principal
amount of the Indebtedness to be hedged by such Hedging Contract or an average
of such principal balances calculated using a generally accepted method of
matching interest swap contracts to declining principal balances, (ii) the
floating rate index of such Hedging Contract generally matches the index used to
determine the floating rates of interest on the corresponding indebtedness to be
hedged by such Hedging Contract, and (iii) each such Hedging Contract is with a
counterparty or has a guarantor of the obligation of the counterparty which
(unless such counterparty is a Lender or an Affiliate of a Lender) at the time
such Hedging Contract is made has long-term unsecured and unenhanced debt
obligations rated AA or Aa2 (or their equivalents) or better or is an
investment-grade industry participant or otherwise acceptable to Required
Lenders. As used herein, "Acceptable Sum" shall mean, as of any date of
determination, the sum of (i) $60,000,000 plus (ii) fifty percent of the then
outstanding aggregate principal amount of the American Capital Notes.

      SECTION 5.19. Compliance with Agreements. Perform all material obligations
it is required to perform under the terms of each indenture, mortgage, deed of
trust, security agreement, lease, franchise, agreement, contract, or other
instrument or obligation to which it is a party or by which any of its
properties is bound.

                         ARTICLE VI. NEGATIVE COVENANTS

      The Borrower covenants and agrees with each Lender that, so long as this
Agreement shall remain in effect, or the principal of or interest on any Loan or
Note, any Commitment Fee or any other fee, expense or amount payable hereunder
or in connection with any of the Credit Transactions shall be unpaid, unless the
Required Lenders shall otherwise consent in writing, it will not and will not
cause or permit any of its Subsidiaries and, in the case of Section 6.14 hereof,
any ERISA Affiliate to, either directly or indirectly:

      SECTION 6.01. Liens. Incur, create, assume or permit to exist any Lien on
any of its property or assets (including the stock of any direct or indirect
Subsidiary), whether owned at the date hereof or hereafter acquired, or assign
or convey any rights to or security interests in any future revenues, except
("Permitted Liens"):

      (a) Liens incurred and pledges and deposits made by the Borrower or any of
its Subsidiaries in the ordinary course of business in connection with workers'
compensation, unemployment insurance, old-age pensions and other social security
benefits;

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      (b) Liens imposed by law, such as carriers', warehousemen's, mechanics',
materialmen's and vendors' liens and other similar liens, incurred in good faith
in the ordinary course of the business of the Borrower or any of its
Subsidiaries and securing obligations which are not overdue for a period of more
than 15 days or which are being contested in good faith by appropriate
proceedings as to which the Borrower or any of its Subsidiaries, as the case may
be, shall, to the extent required by GAAP, applied on a consistent basis, have
set aside on its books adequate reserves;

      (c) Liens securing the payment of taxes, assessments and governmental
charges or levies, that are not delinquent or are being diligently contested in
good faith by appropriate proceedings and as to which reserves have been
established in an amount not less than the aggregate amount secured by such
Liens (including, without limitation, the amount of taxes and assessments being
contested and any interest and penalties payable in respect thereof), and for
which levy and execution has not issued or continues to be stayed, provided,
that such Liens do not individually or collectively detract materially from the
value of the property of the Person in question or materially impair the use of
that property in the operation of its business;

      (d) zoning restrictions, easements, licenses, reservations, provisions,
covenants, conditions, waivers, or restrictions on the use of real property of
the Borrower or any of its Subsidiaries or minor irregularities of title with
respect thereto (and with respect to leasehold interests, mortgages,
obligations, Liens and other encumbrances incurred, created, assumed or
permitted to exist and arising by, through or under a landlord or owner of the
property being leased by the Borrower or its Subsidiaries, but not covering the
leasehold interests or any other property of the Borrower and its Subsidiaries,
with or without consent of the lessee) which do not in the aggregate materially
detract from the value of said property or assets or materially impair the use
thereof in the operation of its business;

      (e) Liens (including any Capitalized Lease to the extent the same is an
item of Indebtedness permitted under Section 6.03) originally created to secure
payment of a portion of the purchase price or construction costs, as the case
may be, relating to any real property or equipment or any interest therein, upon
such real property, equipment (including furniture and fixtures) or interest
therein; provided, that (i) the outstanding principal amount of Indebtedness
secured by any such Lien does not exceed one hundred percent (100%) of the
purchase price actually paid by the Borrower or any of its Subsidiaries (or, in
the case of a Capitalized Lease, by the owner) for the real property or
equipment or interest therein which is encumbered by such Lien, and/or the
construction costs actually incurred by the Borrower or any of its Subsidiaries
with respect to the improvements thereto, as the case may be, (ii) the
Indebtedness secured by any such Lien (including, in the case of any Capitalized
Lease, the Capitalized Lease Obligation in respect of such Capitalized Lease) is
permitted under Section 6.03, and (iii) any such Lien does not encumber any
other asset at any time owned by the Borrower or any of its Subsidiaries;

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      (f) Liens existing on the Closing Date and described on Schedule 6.01
attached hereto, but not the extension, renewal or refunding of the Indebtedness
secured thereby (except as permitted as described on Schedule 6.01);

      (g) Liens created in favor of the Administrative Agent which secure the
Obligations, Liens in favor of the American Capital Agent which secure the
obligations of the Borrower and its Subsidiaries in respect of the American
Capital Notes, Liens in favor of Travelers which secure the obligations of the
Borrower and its Subsidiaries in respect of the Money Order Agreement, and Liens
in favor of the Collateral Agent which secure the obligations of the Borrower to
the Collateral Agent under the Collateral Agency Agreement;

      (h) constitutional, statutory and contractual Liens of landlords for sums
not yet due and payable; and good-faith pledges or deposits that may not cover
any other assets except cash proceeds of such pledges or deposits made to secure
(i) the Borrower's or any Subsidiary's performance of bids, tenders, contracts
(except for the repayment of borrowed money), or leases, (ii) statutory
obligations, surety, or appeal bonds, or indemnity, performance, or other
similar bonds benefiting the Borrower or any Subsidiary, or (iii) liabilities to
insurance carriers under insurance or self-insurance arrangements and other
obligations of a like nature, so long as, in each case such Liens (x) do not
secure obligations constituting Indebtedness and (y) are incurred in the
ordinary course of business; and

      (i) Liens granted by ACE Funding pursuant to the Loan and Servicing
Agreement.

      SECTION 6.02. Sale and Lease-Back Transactions. Except as set forth on
Schedule 6.02, enter into any arrangement, directly or indirectly, with any
Person whereby it shall sell or transfer any property, real or personal, and
used or useful in its business, whether now owned or hereafter acquired, and
thereafter rent or lease such property or other property which it intends to use
for substantially the same purpose or purposes as the property being sold or
transferred, except for any such arrangements that are entered into in the
Borrower's ordinary course of business.

      SECTION 6.03. Indebtedness for Borrowed Money and Guarantees.

      (a) Incur, create, assume or permit to exist any Indebtedness for borrowed
money (excluding Guarantees) that is secured by Liens other than (i)
Indebtedness secured by Permitted Liens in an amount not to exceed three million
dollars ($3,000,000) per item of Indebtedness and five million dollars
($5,000,000) in the aggregate; (ii) Indebtedness under the American Capital
Agreement, the American Capital Notes, and the Money Order Agreement and other
Indebtedness existing on the date hereof and listed in Schedule 6.03 hereto;
provided, that, such Indebtedness shall not after the date hereof (A) increase
in amount (except increases subject to limitations in amount in existence on the
date hereof); (B) be secured by Liens not in existence on the date hereof,

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or (C) change in regard to seniority in any respect; and (iii) Indebtedness
incurred hereunder (including, without limitation, any drawings under any Letter
of Credit).

      (b) Incur, create, assume or permit to exist any Guarantees other than
(without duplication): (i) Guarantees of the Obligations; (ii) Guarantees for
the benefit of the holders of the American Capital Notes in respect of
Borrower's obligations under the American Capital Notes, and (iii) Guarantees
for the benefit of Travelers in respect of the Borrower's obligations under the
Money Order Agreement.

      (c) Incur, create, assume or permit to exist any unsecured Indebtedness
other than (i) current accounts payable and unsecured current liabilities (not
the result of borrowing) incurred in the ordinary course of business of the
Borrower to vendors, suppliers and Persons providing services, for expenditures
for goods and services normally required by it in the ordinary course of
business and on ordinary trade terms, including (without limitation) obligations
pursuant to the Money Order Agreement and (ii) Indebtedness evidenced by
Deferred Payment Obligations in an amount not to exceed four million dollars
($4,000,000) in the aggregate at any time.

      (d) Incur, create, assume or permit to exist any Indebtedness under
Hedging Contracts other than Hedging Contracts with a Lender or an Affiliate of
a Lender, in each case in accordance with Section 5.18 hereof.

      SECTION 6.04. Equity Interest in Subsidiaries Equity Interests in
Borrower.

      (a) Sell, transfer, encumber, pledge or otherwise dispose of any Equity
Interests (including, without limitation, Preferred Stock and any options,
warrants or other rights to acquire any Equity Interests) in any Subsidiary or
permit any of its Subsidiaries to issue any additional Equity Interests other
than to the Borrower or to a Subsidiary of the Borrower that is a Guarantor; or
otherwise permit any Subsidiary to be other than a direct or indirect
wholly-owned Subsidiary.

      (b) Sell or otherwise issue any Equity Interests (including, without
limitation, Preferred Stock and any options, warrants or other rights to acquire
any Equity Interests) in Borrower; provided, however, that Borrower may issue
and or sell additional shares of its common stock, and may grant options,
warrants, and other rights to acquire its common stock, in each case after the
Closing Date only if no Event of Default has occurred and is continuing
hereunder or would otherwise occur as a result of any such issuance and sale.

      SECTION 6.05. Consolidations, Mergers and Sales of Assets. (a) Directly or
indirectly consolidate with or merge into any other Person, or permit another
Person to merge into it, unless it is a Guarantor merging into the Borrower
(with the Borrower being the surviving entity) or another Guarantor; provided,
that, (i) such entity has provided the Agent with written notice at least ten
(10) Business Days prior to such merger, (ii) all Liens in favor of the Agent
granted by such entities continue to be valid, perfected and first priority
(except for pre-existing Liens on the assets of such other

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Person which are also Permitted Liens, and (iii) in no event shall ACE Funding
merge into Borrower or any Subsidiary of Borrower, (b) acquire all or
substantially all the Equity Interests or other ownership interests in, any
other Person (except for Acceptable Acquisitions that also comply with Section
5.11), (c) sell, lease, transfer or assign to any Persons or otherwise dispose
of (whether in one transaction or a series of transactions) all or substantially
all of its assets (whether now owned or hereafter acquired), or (d) otherwise
sell any of its assets other than assets which are of nominal value or obsolete
or are replaced by assets of equal suitability and value; provided, however,
that (i) the Borrower and its Subsidiaries may sell only fixed assets (i.e.,
furniture, fixtures, and equipment), goodwill, and leasehold interests in
connection with the disposition of stores in the ordinary course of business
(but in no event cash, checks, accounts, receivables or working capital) in an
amount not to exceed $5,000,000 in the aggregate in any Fiscal Year, and (ii)
any Guarantor may sell or lease any of its assets to the Borrower or to another
Guarantor if and only if all Liens on any such assets in favor of the Agent
continue to be valid, perfected and first priority subsequent to such sale or
lease.

      SECTION 6.06. Loans and Advances. Make any loan or advance to any other
Person other than (without duplication):

      (a) Advances by Borrower or any Subsidiary to its officers and employees
for salary and other compensatory benefits, travel advances, advances against
commissions and other similar advances in the ordinary course of business,
provided that the amount of such advances does not exceed $50,000 in the
aggregate at any time;

      (b) Loans and advances to any wholly-owned Subsidiary which is also a
Guarantor;

      (c) Loans and advances existing on the date hereof and listed on Schedule
6.06 hereto, but not the increase, extension, renewal or refunding thereof;

      (d) Loans and advances to the Borrower's retail financial service
customers in the ordinary course of its business;

      (e) Loans to ACE Funding by Borrower permitted under Section 6.21; or

      (f) Until September 30, 2003, loans and advances by Borrower to Goleta
under the Goleta Agreement.

      SECTION 6.07. Net Worth. At any time, permit Net Worth of the Borrower and
its Subsidiaries on a Consolidated basis at any time to be less than $64,038,000
plus (b) seventy-five percent (75%) of all Net Income earned after the Closing
Date during any completed fiscal quarter, provided, however that fiscal quarters
in which Net Income is a negative amount will be excluded from the calculation
of Net Income earned after the Closing Date, plus (c) an amount equal to all
proceeds of any offering of Equity Interests (net of offering and professional
fees and expenses) by the Borrower or any of its Subsidiaries occurring after
the Closing Date that is permitted hereunder.

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      SECTION 6.08. EBITDA. At the end of any fiscal quarter, permit the
aggregate EBITDA on a Consolidated basis for the four previous quarters to be
less than eighty-five percent (85%) of the aggregate EBITDA of the Borrower and
its Subsidiaries on a Consolidated basis for the four consecutive fiscal
quarters reported at the prior fiscal quarter end.

      SECTION 6.09. Debt to EBITDA Ratio. At the end of any fiscal quarter,
permit the Debt to EBITDA Ratio to be more than (i) 3.50 to 1.00 from the
Closing Date until June 30, 2005 and (ii) 3.25 to 1.00 at any time thereafter;
provided, however, that as of the end of each of the fiscal quarters ending on
each of March 31, 2004 and March 31, 2005, the Debt to EBITDA Ratio shall not be
greater than 3.75 to 1.00. For purposes of this Section 6.09 only, the EBITDA of
any Person acquired by the Borrower or its Subsidiaries pursuant to an
Acceptable Acquisition during any period shall be included in the Debt to EBITDA
Ratio on a pro forma basis for such period (assuming the consummation of such
acquisition and the incurrence or assumption of any Indebtedness in connection
therewith occurred on the first day of such period) if (a) with respect to any
such Acceptable Acquisition of such Person, the consolidated balance sheet of
such acquired Person as at the end of the period preceding the acquisition of
such Person and its consolidated subsidiaries and the related statements of
income and stockholders' equity and of cash flows for the period in respect of
which the Debt to EBITDA Ratio is to be calculated have been reported on, unless
such audit requirement is waived by Agent, without a qualification arising out
of the scope of the audit by independent certified public accountants of
nationally recognized standing and (b) if any such Acceptable Acquisition
involved the incurrence of Funded Indebtedness, the incurrence of such Funded
Indebtedness was permitted hereunder; provided, however, that no recalculation
of the Debt to EBITDA Ratio pursuant to this sentence shall have any effect on
the Applicable Margin until the first Adjustment Date occurring after each such
recalculation.

      SECTION 6.10. Cash Flow Coverage Ratio. At the end of any fiscal quarter,
permit the Cash Flow Coverage Ratio of the Borrower and its Subsidiaries on a
Consolidated basis to be less than 1.15 to 1.00.

      SECTION 6.11. Use of Proceeds. Permit the proceeds of any Loan to be used
for any purpose which entails a violation of, or is inconsistent with,
Regulation T, U or X of the Board or Section 3.13 hereof.

      SECTION 6.12. ERISA.

      (a) Engage in any transaction in connection with which the Borrower or any
ERISA Affiliate could be subject to either a material civil penalty assessed
pursuant to the provisions of Section 502 of ERISA or a material tax imposed
under the provisions of Section 4975 of the Code.

      (b) Terminate any Pension Plan in a "distress termination" under Section
4041 of ERISA, or take any other action which could result in a material
liability of the Borrower or any ERISA Affiliate to the PBGC.

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      (c) Fail to make payment when due of all amounts which, under the
provisions of any Plan, the Borrower or any ERISA Affiliate is required to pay
as contributions thereto, or, with respect to any Pension Plan, permit to exist
any material "accumulated funding deficiency" (within the meaning of Section 302
of ERISA and Section 412 of the Code), whether or not waived, with respect
thereto.

      (d) Adopt an amendment to any Pension Plan requiring the provision of
security under Section 307 of ERISA or Section 401(a)(29) of the Code.

      SECTION 6.13. Modifications of Certain Indebtedness; Other Agreements.
Without the prior written consent of Required Lenders, amend, modify, restate,
or supplement any of the American Capital Agreement or the Goleta Agreement;
without the prior written consent of the Required Lenders, amend, modify,
restate, supplement, renew, increase, or extend the American Capital Notes; or,
without the prior written consent of the Agent, amend, modify, restate, or
supplement the Travelers Documents if such amendment, modification, or
restatement could reasonably be expected to result in a Material Adverse Effect.
Neither the Borrower nor any Subsidiary shall amend or modify any other material
agreement existing on the date hereof, to which the Borrower or any Subsidiary
is a party, if such amendment or modification would adversely affect the
interests of the Lenders.

      SECTION 6.14. Transactions with Affiliates. Except as otherwise
specifically set forth in this Agreement and except for (i) leases negotiated in
connection with Acceptable Acquisitions, (ii) transactions permitted pursuant to
the terms of this Agreement, or (iii) leases entered into in the ordinary course
of establishing or maintaining the Borrower's retail locations, directly or
indirectly purchase, acquire or lease any property from, or sell, transfer or
lease any property to, or enter into any other transaction with, any of its
Related Parties, Affiliates or agents or any relative thereof, except at fair
and reasonable prices and on terms not less favorable to it than that which
would have been obtained in an arm's-length transaction with a Person which is
not a Related Party or an Affiliate.

      SECTION 6.15. Other Agreements. Enter into (a) any agreement which
requires it to comply with any financial covenant to the extent that such
financial covenant could reasonably be expected to be more restrictive than any
of the financial covenants contained in this Agreement, unless this Agreement is
amended to include such financial covenant contemporaneously upon the execution
and delivery of such other agreement, or (b) without the prior written consent
of the Required Lenders, any agreement for the acquisition of the stock or
substantially all assets of any other business entity which cannot be terminated
prior to the closing thereof either in the sole discretion of the Borrower or in
exchange for a payment not to exceed $10,000, unless such proposed acquisition
is an Acceptable Acquisition.

      SECTION 6.16. Restricted Payments. At any time (a) through any outlay
other than issuance of the Borrower's or a Subsidiary's own stock or cash
payments in lieu of the issuance of fractional shares (i) redeem, retire,
otherwise acquire, or prepay, directly

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or indirectly, any shares of its capital stock, or any other Equity Interest
(except for repayments upon forfeiture of restricted stock issued to issued to
officers, directors, and employees of amounts paid to Borrower by such parties
for such restricted stock) ; (ii) declare or pay any cash dividend (except for
cash dividends paid to the Borrower or any wholly-owned Subsidiary of Borrower
that is a Guarantor or distributions paid by ACE Funding to Borrower); or (iii)
make any other distribution of any property or cash to owners of an equity
interest in their capacity as such (except distributions of property or cash to
the Borrower or any Guarantor) or (b) make any payment in respect of
Indebtedness that is permitted under Section 6.03; provided, however, that:

            (i) the Borrower may make regularly scheduled payments of principal
      and interest on all Indebtedness permitted under Section 6.03 so long as
      no Default or Event of Default has occurred, is continuing, or would
      result therefrom,

            (ii) notwithstanding the foregoing clause (i), the Borrower may make
      regular payments in respect of the Third Party Payables in the ordinary
      course of business irrespective of the occurrence or continuance of a
      Default under clause (a), (b), (c), (d), (g), (h), (i), (j), (k), (l),
      (m), (n), (o), or (p) of Article VII hereof (or Event of Default resulting
      from such a Default) until Agent delivers to Borrower a Payment Blockage
      Notice, and

            (iii) notwithstanding the foregoing clause (i), the Borrower may
      make any and all payments on the American Capital Obligations when due and
      payable in accordance with the terms of the American Capital Agreement and
      the American Capital Notes, in each case as in effect on the date hereof,
      except to the extent such payments are prohibited under the Intercreditor
      Agreement.

      SECTION 6.17. Limitation on Investments. Make or permit to exist, any
capital contributions to, or make any investment in, or purchase or commit to
purchase any Equity Interest or evidences of indebtedness of or interests in any
Person which is not a Subsidiary ("Investments"), except the following:

      (a) Liquid Investments;

      (b) Acceptable Acquisitions, so long as no Default or Event of Default has
occurred and is continuing;

      (c) trade and customer accounts receivable which are for goods furnished
or services rendered in the ordinary course of business and are payable in
accordance with customary trade terms;

      (d) Investments existing on the date hereof and described on Schedule
6.17;

      (e) Investments in ACE Funding by Borrower permitted under Section 6.21;
and

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      (f) Until September 30, 2003, investments in Goleta by Borrower under the
Goleta Agreement.

      SECTION 6.18 Change in Business. Engage in any business not of the same
general type as, or reasonably related to, those conducted by the Borrower on
the Closing Date.

      SECTION 6.19. Capital Expenditures. Make any Capital Expenditures in
excess of the aggregate amount of (i) $5,000,000 in Fiscal Year 2003; (ii)
$9,750,000 in Fiscal Year 2004; (iii) $11,000,000 in Fiscal Year 2005; and (iv)
$12,250,000 in Fiscal Year 2006. To the extent that any amount of permitted
Capital Expenditures is not used during any Fiscal Year, then up to $1,000,000
of such unexpended amount may be carried forward and expended during the next
Fiscal Year; provided, however, that (a) no amount of permitted Capital
Expenditures may be carried forward for more than one Fiscal Year and (b) during
any Fiscal Year in which such unexpended amounts have been carried forward, all
Capital Expenditures shall be deemed to apply first to the amount carried
forward and then to the amount of Capital Expenditures permitted during such
Fiscal Year.

      SECTION 6.20. Deposit Accounts and Armored Couriers. Borrower shall not,
at any time after June 30, 2003, permit (i) more than 5% of the aggregate amount
of Borrower's Cash Holdings and each Subsidiary's Cash Holdings held in deposit
accounts to be held in Deposit Accounts maintained by financial institutions
with which there is no Letter Agreement and (ii) more than 5% of the aggregate
dollar amount of Borrower's Cash Holdings and instruments and each Subsidiary's
Cash Holdings and instruments to be transported by armored couriers with which
there is no Letter Agreement.

      SECTION 6.21. ACE Funding. Notwithstanding anything to the contrary
contained in this Agreement, (i) ACE Funding shall not incur or be liable in
respect of any Indebtedness other than Unrestricted Indebtedness in favor of
Autobahn Funding Company LLC ("ACE Funding Lender"), and such Unrestricted
Indebtedness may be secured by Liens on any or all of ACE Funding's assets or
properties, (ii) ACE Funding shall not be a Borrower under this Agreement and
shall not obtain the benefit of the Revolving Credit Commitment or the Seasonal
Revolving Credit Commitment (provided, however, that the Borrower shall be
permitted to (a) make an equity investment in ACE Funding not to exceed
$1,000,000 and (b) loan to ACE Funding up to the lesser of (x) $3,000,000 or (y)
one percent (1%) of the total aggregate financial commitment of the ACE Funding
Lender to ACE Funding, during the Usage Period for purposes of allowing ACE
Funding to (1) satisfy its minimum funding requirements under one or more
reserve accounts to be established by ACE Funding in favor of the ACE Funding
Lender and (2) provide cash to its self-service check cashing machines in
various H&R Block business locations (hereinafter referred to as "SSMs")), (iii)
ACE Funding shall not be required to become a Guarantor hereunder, (iv) neither
Borrower nor ACE Funding shall allow ACE Funding Lender to have or obtain a Lien
on any assets or properties of the Borrower or any of its other Subsidiaries,
(v) except as provided in this Section 6.21, neither Borrower nor any of its
other Subsidiaries will engage in any transaction (excluding transactions

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contemplated by the Loan and Servicing Agreement) merger or consolidation with
ACE Funding or provide any credit support for any Unrestricted Indebtedness
which ACE Funding is permitted to incur hereunder, (vi) ACE Funding shall not
own any Equity Interest in, or Indebtedness of, the Borrower or any of its other
Subsidiaries, (vii) neither Borrower nor any of its other Subsidiaries will
sell, lease, transfer or otherwise assign any of its assets or properties to, or
acquire, for any amount of consideration, any assets or properties of, or enter
into any contract or agreement with ACE Funding (provided, however, that the
Borrower shall be permitted to lease its SSMs to ACE Funding) and (viii) except
as specifically permitted under clause (ii) above, neither Borrower nor any of
its other Subsidiaries will make any loans or advances to, or make any equity
investments in, ACE Funding (other than the minimum equity investment, if any,
required to form ACE Funding under its jurisdiction of organization); provided,
however, that at any time ACE Funding or Borrower fails to comply with this
Section 6.21, ACE Funding shall be immediately required to execute and deliver
Credit Documents of the type required of newly created Subsidiaries of Borrower
under Section 5.11.

      SECTION 6.22. Restrictive Agreements. Except as provided in the American
Capital Agreement or in the Loan and Servicing Agreement, create any restriction
of any kind on the ability of any Subsidiary (including but not limited to ACE
Funding) to: (i) pay dividends or make any other distributions to the Borrower
or any Subsidiary of the Borrower, (ii) pay any Indebtedness owed to the
Borrower or any Subsidiary of the Borrower, (iii) make loans or advances to the
Borrower or any Subsidiary of the Borrower, (iv) transfer any of its properties
or assets to the Borrower or any Subsidiary of the Borrower, or (v) grant a Lien
on any of its properties or assets.

      SECTION. 6.23. Miscellaneous.

      (a) Neither the Borrower nor any of its Subsidiaries shall change its
Fiscal Year from ending on June 30 or method of accounting (other than
immaterial changes in methods), except as required by GAAP.

      (b) Neither the Borrower nor any of its Subsidiaries shall relocate its
principal executive offices or other facilities or its jurisdiction of
incorporation, organization or formation, or establish new business locations or
store any inventory or other assets at a location not identified to Agent on or
before the date hereof, without providing not less than thirty (30) days advance
written notice to Agent.

      (c) Neither the Borrower nor any of its Subsidiaries shall change its
corporate name or establish new or additional trade names without providing less
than 30 days advance written notice to Agent.

      (d) Without the consent of Agent, neither the Borrower nor any Subsidiary
shall amend, terminate or modify the change of control agreements with the Key
Management in existence as of the Closing Date.

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      (e) Neither the Borrower nor any of its Subsidiaries will request any
extension of credit hereunder which causes (after giving effect to such credit
extension) the aggregate principal amount of all Loans outstanding, plus the
amount of the LC Exposure, to exceed the amount of the Borrowing Base on the
date of such request.

                         ARTICLE VII. EVENTS OF DEFAULT

      If any of the following events ("Events of Default") shall occur:

            (a) the Borrower shall fail to pay any principal of any Loan or any
      reimbursement obligation in respect of any LC Disbursement when and as the
      same shall become due and payable, whether at the due date thereof or at a
      date fixed for prepayment thereof or otherwise;

            (b) the Borrower shall fail to pay any interest on any Loan or any
      fee or any other amount (other than an amount referred to in clause (a) of
      this Article) payable under this Agreement, when and as the same shall
      become due and payable, and such failure shall continue unremedied for a
      period of two (2) Business Days after notice thereof from Agent;

            (c) any representation or warranty made or deemed made by or on
      behalf of the Borrower or any Subsidiary in or in connection with this
      Agreement or any other Credit Document or any amendment or modification
      hereof or thereof or waiver hereunder or thereunder, or in any report,
      certificate, financial statement or other document furnished pursuant to
      or in connection with this Agreement or any other Credit Document or any
      amendment or modification hereof or thereof or waiver hereunder or
      thereunder, shall prove to have been incorrect in any material respect
      when made or deemed made;

            (d) (i) default shall be made in the due observance or performance
      of any covenant, condition or agreement to be observed or performed on the
      part of the Borrower or any of its Subsidiaries pursuant to Sections 5.06,
      5.08, 5.11 or 5.13 or Articles II, VI or IX of this Agreement, or (ii)
      default shall be made in the due observance or performance of any
      covenant, condition or agreement to be observed or performed on the part
      of Borrower or any of its Subsidiaries pursuant to Sections 5.01, 5.02,
      5.03 or 5.05 of this Agreement and such default shall continue unremedied
      for five (5) or more consecutive Business Days after the earlier of (x)
      the date notice thereof shall have been given to the Borrower by any
      Lender, or (y) the date on which such failure becomes known to any
      Responsible Officer of the Borrower; or (iii) default shall be made in the
      due observance or performance of any other covenant, condition or
      agreement to be observed or performed on the part of the Borrower or any
      of its Subsidiaries pursuant to this Agreement or any other Credit
      Document and not otherwise covered by this Article VII and such default
      shall continue unremedied for thirty (30) or more consecutive Business
      Days after the earlier of (x) the date notice thereof shall have been
      given to the Borrower or such Subsidiary by any Lender, or (y) the date

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      on which such failure becomes known to any Responsible Officer of the
      Borrower or such Subsidiary; provided, however, the grace periods provided
      for in this paragraph (d) shall be void and of no effect unless the
      Borrower shall, to the extent the Borrower has actual knowledge thereof,
      provide prompt notice to the Agent (in writing) of (A) the occurrence or
      expected occurrence of such Default, with a certification to the Agent of
      the Borrower's good faith expectation that such Default shall be cured by
      the Borrower before the end of the grace period; and (B) the occurrence of
      the Borrower's cure of the Default before the end of the grace period.
      During the grace period, a Default shall be deemed to have occurred and be
      continuing until actually cured by the Borrower. If any such Default is
      not cured before the end of the grace period, the Agent shall have all of
      the rights described in this Article VII and each of the other Credit
      Documents without any restriction imposed by this paragraph (d)
      whatsoever;

            (e) the Borrower or any Subsidiary shall (i) voluntarily commence
      any proceeding or file any petition seeking liquidation, reorganization or
      other relief under any Federal, state or foreign bankruptcy, insolvency,
      receivership or similar law now or hereafter in effect, (ii) consent to
      the institution of, or fail to contest in a timely and appropriate manner,
      any proceeding or petition described in clause (f) of this Article, (iii)
      apply for or consent to the appointment of a receiver, trustee, custodian,
      sequestrator, conservator or similar official for the Borrower or any
      Subsidiary or for a substantial part of its assets, (iv) file an answer
      admitting the material allegations of a petition filed against it in any
      such proceeding, (v) make a general assignment for the benefit of
      creditors, (vi) take any action for the purpose of effecting any of the
      foregoing, or (vii) shall become unable, admit in writing its inability or
      fail generally to pay its debts as they become due;

            (f) an involuntary proceeding shall be commenced or an involuntary
      petition shall be filed seeking (i) liquidation, reorganization or other
      relief in respect of the Borrower or any Subsidiary or its debts, or of a
      substantial part of its assets, under any Federal, state or foreign
      bankruptcy, insolvency, receivership or similar law now or hereafter in
      effect or (ii) the appointment of a receiver, trustee, custodian,
      sequestrator, conservator or similar official for the Borrower or any
      Subsidiary or for a substantial part of its assets, and, in any such case,
      such proceeding or petition shall continue undismissed for 45 days or an
      order or decree approving or ordering any of the foregoing shall be
      entered;

            (g) the aggregate principal amount of all Loans outstanding, plus
      the amount of the LC Exposure exceeds the Borrowing Base more than three
      (3) times during any consecutive twelve (12) month period;

            (h) default shall be made with respect to any Indebtedness or under
      any Capitalized Lease Obligation of the Borrower or any Subsidiary of the
      Borrower in an amount exceeding one million dollars ($1,000,000) (other
      than with respect to the ACAS Notes) if the effect of any such default
      shall be to accelerate, or to permit the holder or obligee of any such
      Indebtedness or under such Capitalized

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      Lease Obligations (or any trustee on behalf of such holder or obligee) at
      its option to accelerate the maturity of such Indebtedness or such
      Capitalized Lease Obligation; provided, however, an Event of Default for
      purposes of this clause (h) shall not be deemed to exist due to the
      acceleration of the maturity of any obligation to a Lender or an affiliate
      (within the meaning of Regulation U) of a Lender solely by reason of a
      default in the performance of a term or condition in any agreement or
      instrument under or by which such obligation is created, evidenced or
      secured, which term or condition restricts the right of the Borrower or
      any other Person to sell, pledge or otherwise dispose of any margin stock
      (within the meaning of Regulation U) held by the Borrower or any such
      other Person;

            (i) a Reportable Event (other than a Reportable Event with respect
      to which the thirty (30) day notice requirement under Section 4043 of
      ERISA has been waived) shall have occurred with respect to a Pension Plan,
      (ii) the Borrower, any ERISA Affiliate, or an administrator of any Plan
      files a notice of intent to terminate such a Plan in a "distress
      termination" under the provisions of Section 4041 of ERISA, (iii) the
      receipt of notice by the Borrower, any ERISA Affiliate, or an
      administrator of a Pension Plan that the PBGC has instituted proceedings
      to terminate (or appoint a trustee to administer) such a Pension Plan or
      Multiemployer Plan, (iv) any other event or condition exists which might,
      in the reasonable opinion of the Agent, constitutes grounds under the
      provisions of Section 4042 of ERISA for the termination of (or the
      appointment of a trustee to administer) any Pension Plan or Multiemployer
      Plan by the PBGC, (v) a Pension Plan fails to maintain the minimum funding
      standard required by Section 412 of the Code for any plan year or a waiver
      of such standard is sought or granted under the provisions of Section
      412(d) of the Code, (vi) the Borrower or any ERISA Affiliate has incurred,
      or is likely to incur, a liability under the provisions of Section 4062,
      4063, 4064 or 4201 of ERISA, (vii) the Borrower or any ERISA Affiliate
      fails to pay the full amount of an installment required under Section
      412(m) of the Code, and in each case in clauses (i) through (vii) of this
      paragraph (i), such event or condition, together with all other such
      events or conditions, if any, could subject the Borrower or any ERISA
      Affiliate to any taxes, penalties or other liabilities which could have a
      material adverse effect on the financial condition of the Borrower and any
      ERISA Affiliate taken as a whole;

            (j) the Borrower or any ERISA Affiliate (i) shall have been notified
      by the sponsor of a Multiemployer Plan that it has incurred any material
      withdrawal liability to such Multiemployer Plan, and (ii) does not have
      reasonable grounds for contesting such withdrawal liability and is not in
      fact contesting such withdrawal liability in a timely and appropriate
      manner;

            (k) any final judgment or judgments for the payment of money shall
      be rendered by a court or other tribunal against the Borrower or any
      Subsidiary of the Borrower (but only to the extent that the same (i) is
      not fully covered by insurance or (ii) if fully covered by insurance, the
      carrier of such insurance has denied

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<PAGE>
      liability under such insurance) which when taken together with all other
      such judgments which remain outstanding and unpaid exceed(s) one million
      dollars ($1,000,000) (excluding the amount of commercially reasonable
      deductibles under insurance) and (x) any such judgment or judgments shall
      remain undischarged or unstayed for more than thirty (30) days, whether
      consecutive or not, or (y) any judgment creditor shall legally commence
      actions to collect on or enforce such judgment; or after the Closing Date,
      the Borrower and/or its Subsidiaries (other than ACE Funding) shall settle
      any lawsuit or cause of action filed against it or them requiring the
      Borrower and/or its Subsidiaries (other than ACE Funding) to pay an amount
      (net of insurance proceeds) (i) equal to or greater than $5,000,000 with
      respect to any single lawsuit or cause of action or (ii) equal to or
      greater than $10,000,000 with respect to all lawsuits or causes of action
      in the aggregate;

            (l) this Agreement or any other Credit Document shall for any reason
      cease to be, or shall be asserted by the Borrower or any Guarantor not to
      be, a legal, valid and binding obligation of such Person, enforceable in
      accordance with its terms;

            (m) any Guarantor revokes, terminates or fails to perform any of the
      terms, conditions, covenants or provisions of any Guaranty Agreement,
      Security Document, endorsement or other agreement of such Person to the
      Lenders;

            (n) any Change in Control;

            (o) any event or change in circumstances occurs which could
      reasonably be expected to result in a Material Adverse Effect;

            (p) a Travelers Event of Default; or

            (q) a "Default" occurs under the American Capital Agreement and
      either (i) such Default has not been cured or waived in writing within
      thirty (30) days after the occurrence thereof or (ii) the ACAS Notes have
      been accelerated as a result thereof;

then, and in every such event (other than an event with respect to the Borrower
described in clause (e) or (f) of this Article), and at any time thereafter
during the continuance of such event, the Agent may, and at the request of the
Required Lenders shall, by notice to the Borrower, take either or all of the
following actions, at the same or different times: (i) terminate the Total
Revolving Credit Commitments and/or the Total Seasonal Revolving Credit
Commitments, and thereupon the Total Revolving Credit Commitments and/or the
Total Seasonal Revolving Credit Commitments, as applicable, shall terminate
immediately, and terminate the obligations of Issuing Lender to issue or cause
to be issued Letters of Credit, (ii) demand that the Borrower provide to Issuing
Lender, and the Borrower upon such demand agrees to provide, cash collateral in
an amount equal to the LC Exposure of the Borrower then existing, such cash
collateral to be deposited in a cash

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collateral account to be held by Agent for the benefit of Issuing Lender, and
(iii) declare the Loans then outstanding, and all reimbursement obligations in
respect of drawings under Letters of Credit then outstanding, to be due and
payable in whole (or in part, in which case any principal not so declared to be
due and payable may thereafter be declared to be due and payable), and thereupon
the principal of the Loans and reimbursement obligations in respect of drawings
under Letters of Credit then outstanding so declared to be due and payable,
together with accrued interest thereon and all fees and other obligations of the
Borrower accrued hereunder, shall become due and payable immediately, without
presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrower; and in case of any event with respect to the
Borrower described in clause (e) or (f) of this Article, the Total Revolving
Credit Commitments and the Total Seasonal Revolving Credit Commitments shall
automatically terminate and the principal of the Loans then outstanding,
together with accrued interest thereon and all fees and other obligations of the
Borrower accrued hereunder, shall automatically become due and payable, without
presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrower.

                               ARTICLE VIII. AGENT

      Each of the Lenders and the Issuing Bank hereby irrevocably appoints the
Agent as its agent and authorizes the Agent to take such actions on its behalf
and to exercise such powers as are delegated to the Agent by the terms hereof
together with such actions and powers as are reasonably incidental thereto.

      The bank serving as the Agent hereunder shall have the same rights and
powers in its capacity as a Lender as any other Lender and may exercise the same
as though it were not the Agent, and such bank and its Affiliates may accept
deposits from, lend money to and generally engage in any kind of business with
the Borrower or any Subsidiary or other Affiliate thereof as if it were not the
Agent hereunder.

      The Agent shall not have any duties or obligations except those expressly
set forth herein. Without limiting the generality of the foregoing, (a) the
Agent shall not be subject to any fiduciary or other implied duties, regardless
of whether a Default has occurred and is continuing, (b) the Agent shall not
have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby
that the Agent is required to exercise in writing as directed by the Required
Lenders (or such other number or percentage of the Lenders and/or other Persons
as shall be necessary hereunder), and (c) except as expressly set forth herein,
the Agent shall not have any duty to disclose, and shall not be liable for the
failure to disclose, any information relating to the Borrower or any of its
Subsidiaries that is communicated to or obtained by the bank serving as Agent or
any of its Affiliates in any capacity. The Agent shall not be liable for any
action taken or not taken by it with the consent or at the request of the
Required Lenders (or such other number or percentage of the Lenders and/or other
Persons as shall be necessary hereunder) or in the absence of its own gross
negligence or willful misconduct. The Agent shall be deemed not to have
knowledge of any Default unless and until written notice thereof is given to the
Agent by

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the Borrower or a Lender, and the Agent shall not be responsible for or have any
duty to ascertain or inquire into (i) any statement, warranty or representation
made in or in connection with this Agreement, (ii) the contents of any
certificate, report or other document delivered hereunder or in connection
herewith, (iii) the performance or observance of any of the covenants,
agreements or other terms or conditions set forth herein, (iv) the validity,
enforceability, effectiveness or genuineness of this Agreement or any other
agreement, instrument or document, (v) the satisfaction of any condition set
forth in Article IV or elsewhere herein, other than to confirm receipt of items
expressly required to be delivered to the Agent, or (vi) the existence,
genuineness, or value of any Collateral or the validity, effectiveness,
perfection, priority or enforceability of Liens in or on any of the Collateral.

      The Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing believed by it to be genuine
and to have been signed or sent by the proper Person. The Agent also may rely
upon any statement made to it orally or by telephone and believed by it to be
made by the proper Person, and shall not incur any liability for relying
thereon. The Agent may consult with legal counsel (who may be counsel for the
Borrower), independent accountants and other experts selected by it, and shall
not be liable for any action taken or not taken by it in accordance with the
advice of any such counsel, accountants or experts.

      The Agent may perform any and all its duties and exercise its rights and
powers by or through any one or more sub-agents appointed by the Agent. The
Agent and any such sub-agent may perform any and all its duties and exercise its
rights and powers through their respective Related Parties. The exculpatory
provisions of the preceding paragraphs shall apply to any such sub-agent and to
the Related Parties of the Agent and any such sub-agent, and shall apply to
their respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Agent.

      Subject to the appointment and acceptance of a successor Agent as provided
in this paragraph, the Agent may resign at any time by notifying the
Administrative Agent, the Lenders, the Issuing Bank and the Borrower. Upon any
such resignation, the Required Lenders shall have the right, in consultation
with the Borrower, to appoint a successor. If no successor shall have been so
appointed by the Required Lenders and shall have accepted such appointment
within 30 days after the retiring Agent gives notice of its resignation, then
the retiring Agent may, on behalf of the Administrative Agent, the Lenders, and
the Issuing Bank, appoint a successor Agent. Upon the acceptance of its
appointment as Agent hereunder by a successor, such successor shall succeed to
and become vested with all the rights, powers, privileges and duties of the
retiring Agent, and the retiring Agent shall be discharged from its duties and
obligations hereunder. The fees payable by the Borrower to a successor Agent
shall be the same as those payable to its predecessor unless otherwise agreed
between the Borrower and such successor. After the Agent's resignation
hereunder, the provisions of this Article and Section 9.03(b) shall continue in
effect for the benefit of such retiring Agent, its sub-agents and their
respective

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Related Parties in respect of any actions taken or omitted to be taken by any of
them while it was acting as Agent.

      Each Lender acknowledges that it has, independently and without reliance
upon the Agent or any other Lender and based on such documents and information
as it has deemed appropriate, made its own credit analysis and decision to enter
into this Agreement. Each Lender also acknowledges that it will, independently
and without reliance upon the Agent or any other Lender and based on such
documents and information as it shall from time to time deem appropriate,
continue to make its own decisions in taking or not taking action under or based
upon this Agreement, any related agreement or any document furnished hereunder
or thereunder.

      EACH LENDER SEVERALLY AGREES TO INDEMNIFY (TO THE EXTENT NOT REIMBURSED BY
THE BORROWER UNDER SECTION 9.03(B)) EACH OF THE AGENT AND THE ISSUING BANK AND
EACH RELATED PARTY OF ANY OF THE FOREGOING PERSONS (EACH SUCH PERSON BEING
CALLED IN THIS PARAGRAPH AN "INDEMNITEE") AGAINST, AND HOLD EACH INDEMNITEE
HARMLESS FROM, ANY AND ALL LOSSES, CLAIMS, DAMAGES, LIABILITIES AND RELATED
EXPENSES, INCLUDING THE FEES, CHARGES AND DISBURSEMENTS OF ANY COUNSEL FOR ANY
INDEMNITEE, INCURRED BY OR ASSERTED AGAINST ANY INDEMNITEE ARISING OUT OF, IN
CONNECTION WITH, OR AS A RESULT OF (COLLECTIVELY BEING CALLED IN THIS PARAGRAPH,
THE "COSTS"): (I) THE EXECUTION OR DELIVERY OF THIS AGREEMENT, ANY OTHER CREDIT
DOCUMENT, OR ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY OR THEREBY, THE
PERFORMANCE BY THE PARTIES HERETO OF THEIR RESPECTIVE OBLIGATIONS HEREUNDER OR
THEREUNDER OR THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY, (II) ANY LOAN OR LETTER OF CREDIT OR THE USE OF THE PROCEEDS THEREFROM
(INCLUDING ANY REFUSAL BY THE ISSUING BANK TO HONOR A DEMAND FOR PAYMENT UNDER A
LETTER OF CREDIT IF THE DOCUMENTS PRESENTED IN CONNECTION WITH SUCH DEMAND DO
NOT STRICTLY COMPLY WITH THE TERMS OF SUCH LETTER OF CREDIT), (III) THE
COLLATERAL OR THE EXERCISE OF REMEDIES IN RESPECT OF THE COLLATERAL, (IV) ANY
ACTUAL OR ALLEGED PRESENCE OR RELEASE OF HAZARDOUS MATERIALS ON OR FROM ANY
PROPERTY OWNED OR OPERATED BY THE BORROWER OR ANY OF ITS SUBSIDIARIES, OR ANY
ENVIRONMENTAL LIABILITY RELATED IN ANY WAY TO THE BORROWER OR ANY OF ITS
SUBSIDIARIES, OR (V) ANY ACTUAL OR PROSPECTIVE CLAIM, LITIGATION, INVESTIGATION
OR PROCEEDING RELATING TO ANY OF THE FOREGOING, WHETHER BASED ON CONTRACT, TORT
OR ANY OTHER THEORY AND REGARDLESS OF WHETHER ANY INDEMNITEE IS A PARTY THERETO,
IN EACH CASE IN ACCORDANCE WITH SUCH LENDER'S APPLICABLE PERCENTAGE (DETERMINED
AS OF THE TIME THAT THE APPLICABLE UNREIMBURSED EXPENSE OR INDEMNITY PAYMENT IS
SOUGHT) OF SUCH COSTS. THE FOREGOING IS INTENDED TO INDEMNIFY AND HOLD HARMLESS
EACH INDEMNITEE TO THE EXTENT THAT SUCH COSTS RESULTED FROM THE NEGLIGENCE OR
ALLEGED NEGLIGENCE OF SUCH INDEMNITEE (WHETHER SOLE, COMPARATIVE, CONTRIBUTORY,
OR OTHERWISE); PROVIDED THAT SUCH INDEMNITY SHALL NOT, AS TO ANY INDEMNITEE, BE
AVAILABLE TO THE EXTENT THAT SUCH LOSSES, CLAIMS,

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<PAGE>
DAMAGES, LIABILITIES OR RELATED EXPENSES RESULTED FROM THE GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT OF SUCH INDEMNITEE.

      A person may serve as both Agent and Administrative Agent hereunder
concurrently.

                       ARTICLE VIIIA. ADMINISTRATIVE AGENT

      Each of the Lenders and the Issuing Bank hereby irrevocably appoints the
Administrative Agent as its agent and authorizes the Administrative Agent to
take such actions on its behalf and to exercise such powers as are delegated to
the Administrative Agent by the terms hereof, the Security Documents, and the
other Credit Documents together with such actions and powers as are reasonably
incidental thereto. Each Lender hereby authorizes Administrative Agent to
execute and deliver each of the Intercreditor Agreement and the Collateral
Agency Agreement on behalf of such Lender.

      The bank serving as the Administrative Agent hereunder shall have the same
rights and powers in its capacity as a Lender as any other Lender and may
exercise the same as though it were not the Administrative Agent, and such bank
and its Affiliates may accept deposits from, lend money to and generally engage
in any kind of business with the Borrower or any Subsidiary or other Affiliate
thereof as if it were not the Administrative Agent hereunder.

      The Administrative Agent shall not have any duties or obligations except
those expressly set forth herein and in the other Credit Documents. Without
limiting the generality of the foregoing, (a) the Administrative Agent shall not
be subject to any fiduciary or other implied duties, regardless of whether a
Default has occurred and is continuing, (b) the Administrative Agent shall not
have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby or
by the other Credit Documents that the Administrative Agent is required to
exercise in writing as directed by the Required Lenders (or such other number or
percentage of the Lenders and/or other Persons as shall be necessary hereunder),
and (c) except as expressly set forth herein, the Administrative Agent shall not
have any duty to disclose, and shall not be liable for the failure to disclose,
any information relating to the Borrower or any of its Subsidiaries that is
communicated to or obtained by the bank serving as Administrative Agent or any
of its Affiliates in any capacity. The Administrative Agent shall not be liable
for any action taken or not taken by it with the consent or at the request of
the Required Lenders (or such other number or percentage of the Lenders and/or
other Persons as shall be necessary hereunder) or in the absence of its own
gross negligence or willful misconduct. The Administrative Agent shall be deemed
not to have knowledge of any Default unless and until written notice thereof is
given to the Administrative Agent by the Borrower or a Lender, and the
Administrative Agent shall not be responsible for or have any duty to ascertain
or inquire into (i) any statement, warranty or representation made in or in
connection with this Agreement, (ii) the contents of any certificate, report or
other document delivered hereunder or in connection herewith, (iii) the
performance or observance of any of the

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<PAGE>
covenants, agreements or other terms or conditions set forth herein, (iv) the
validity, enforceability, effectiveness or genuineness of this Agreement or any
other agreement, instrument or document, (v) the satisfaction of any condition
set forth in Article IV or elsewhere herein, other than to confirm receipt of
items expressly required to be delivered to the Administrative Agent, or (vi)
the existence, genuineness, or value of any Collateral or the validity,
effectiveness, perfection, priority or enforceability of Liens in or on any of
the Collateral.

      The Administrative Agent shall be entitled to rely upon, and shall not
incur any liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing believed by it to be genuine
and to have been signed or sent by the proper Person. The Administrative Agent
also may rely upon any statement made to it orally or by telephone and believed
by it to be made by the proper Person, and shall not incur any liability for
relying thereon. The Administrative Agent may consult with legal counsel (who
may be counsel for the Borrower), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it
in accordance with the advice of any such counsel, accountants or experts.

      The Administrative Agent may perform any and all its duties and exercise
its rights and powers by or through any one or more sub-agents appointed by the
Administrative Agent. The Administrative Agent and any such sub-agent may
perform any and all its duties and exercise its rights and powers through their
respective Related Parties. The exculpatory provisions of the preceding
paragraphs shall apply to any such sub-agent and to the Related Parties of the
Administrative Agent and any such sub-agent, and shall apply to their respective
activities in connection with the syndication of the credit facilities provided
for herein as well as activities as Administrative Agent.

      Subject to the appointment and acceptance of a successor Administrative
Agent as provided in this paragraph, the Administrative Agent may resign at any
time by notifying the Agent, the Lenders, the Issuing Bank and the Borrower.
Upon any such resignation, the Required Lenders shall have the right, in
consultation with the Borrower, to appoint a successor. If no successor shall
have been so appointed by the Required Lenders and shall have accepted such
appointment within 30 days after the retiring Administrative Agent gives notice
of its resignation, then the retiring Administrative Agent may, on behalf of the
Lenders and the Issuing Bank, appoint a successor Administrative Agent. Upon the
acceptance of its appointment as Administrative Agent hereunder by a successor,
such successor shall succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Administrative Agent, and the retiring
Administrative Agent shall be discharged from its duties and obligations
hereunder. The fees payable by the Borrower to a successor Administrative Agent
shall be the same as those payable to its predecessor unless otherwise agreed
between the Borrower and such successor. After the Administrative Agent's
resignation hereunder, the provisions of this Article and Section 9.03(b) shall
continue in effect for the benefit of such retiring Administrative Agent, its
sub-agents and their respective Related Parties in respect of any actions taken
or omitted to be taken by any of them while it was acting as Administrative
Agent.

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<PAGE>

      Each Lender acknowledges that it has, independently and without reliance
upon the Administrative Agent or any other Lender and based on such documents
and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender also acknowledges that it
will, independently and without reliance upon the Administrative Agent or any
other Lender and based on such documents and information as it shall from time
to time deem appropriate, continue to make its own decisions in taking or not
taking action under or based upon this Agreement, any related agreement or any
document furnished hereunder or thereunder.

      EACH LENDER SEVERALLY AGREES TO INDEMNIFY (TO THE EXTENT NOT REIMBURSED BY
THE BORROWER UNDER SECTION 9.03(B)) EACH OF THE ADMINISTRATIVE AGENT AND EACH
RELATED PARTY OF THE ADMINISTRATIVE AGENT (EACH SUCH PERSON BEING CALLED IN THIS
PARAGRAPH AN "INDEMNITEE") AGAINST, AND HOLD EACH INDEMNITEE HARMLESS FROM, ANY
AND ALL LOSSES, CLAIMS, DAMAGES, LIABILITIES AND RELATED EXPENSES, INCLUDING THE
FEES, CHARGES AND DISBURSEMENTS OF ANY COUNSEL FOR ANY INDEMNITEE, INCURRED BY
OR ASSERTED AGAINST ANY INDEMNITEE ARISING OUT OF, IN CONNECTION WITH, OR AS A
RESULT OF (COLLECTIVELY BEING CALLED IN THIS PARAGRAPH, THE "COSTS"): (I) THE
EXECUTION OR DELIVERY OF THIS AGREEMENT, ANY OTHER CREDIT DOCUMENT, OR ANY
AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY OR THEREBY, THE PERFORMANCE BY THE
PARTIES HERETO OF THEIR RESPECTIVE OBLIGATIONS HEREUNDER OR THEREUNDER OR THE
CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, (II) ANY LOAN
OR LETTER OF CREDIT OR THE USE OF THE PROCEEDS THEREFROM (INCLUDING ANY REFUSAL
BY THE ISSUING BANK TO HONOR A DEMAND FOR PAYMENT UNDER A LETTER OF CREDIT IF
THE DOCUMENTS PRESENTED IN CONNECTION WITH SUCH DEMAND DO NOT STRICTLY COMPLY
WITH THE TERMS OF SUCH LETTER OF CREDIT), (III) THE COLLATERAL OR THE EXERCISE
OF REMEDIES IN RESPECT OF THE COLLATERAL, (IV) ANY ACTUAL OR ALLEGED PRESENCE OR
RELEASE OF HAZARDOUS MATERIALS ON OR FROM ANY PROPERTY OWNED OR OPERATED BY THE
BORROWER OR ANY OF ITS SUBSIDIARIES, OR ANY ENVIRONMENTAL LIABILITY RELATED IN
ANY WAY TO THE BORROWER OR ANY OF ITS SUBSIDIARIES, OR (V) ANY ACTUAL OR
PROSPECTIVE CLAIM, LITIGATION, INVESTIGATION OR PROCEEDING RELATING TO ANY OF
THE FOREGOING, WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY AND
REGARDLESS OF WHETHER ANY INDEMNITEE IS A PARTY THERETO, IN EACH CASE IN
ACCORDANCE WITH SUCH LENDER'S APPLICABLE PERCENTAGE (DETERMINED AS OF THE TIME
THAT THE APPLICABLE UNREIMBURSED EXPENSE OR INDEMNITY PAYMENT IS SOUGHT) OF SUCH
COSTS. THE FOREGOING IS INTENDED TO INDEMNIFY AND HOLD HARMLESS EACH INDEMNITEE
TO THE EXTENT THAT SUCH COSTS RESULTED FROM THE NEGLIGENCE OR ALLEGED NEGLIGENCE
OF SUCH INDEMNITEE (WHETHER SOLE, COMPARATIVE, CONTRIBUTORY, OR OTHERWISE);
PROVIDED THAT SUCH INDEMNITY SHALL NOT, AS TO ANY INDEMNITEE, BE AVAILABLE TO
THE EXTENT THAT SUCH LOSSES, CLAIMS, DAMAGES, LIABILITIES OR RELATED EXPENSES
RESULTED FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNITEE

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<PAGE>
                            ARTICLE IX. MISCELLANEOUS

         SECTION 9.01. Notices Except as otherwise expressly provided, notices,
consents and other communications provided for herein shall be in writing and
shall be delivered or mailed (or in the case of facsimile communication,
delivered by graphic scanning, telecopier or other telecommunications equipment,
with receipt confirmed) addressed to (or such other address as shall be
designated by such party in a written notice to the other parties):

          if to the Borrower:       ACE Cash Express, Inc.
                                    1231 Greenway Drive, Suite 800
                                    Irving, Texas 75038
                                    Attn.:   Jay B. Shipowitz
                                    Telephone: (972) 550-5030
                                    Facsimile: (972) 582-1430

          with a copy to:           Gardere Wynne Sewell L.L.P.
                                    3000 Thanksgiving Tower
                                    Dallas, Texas 75201
                                    Attn.:   Richard A. Tulli, Esq.
                                    Telephone: (214) 999-4676
                                    Facsimile: (214) 999-3676

          if to the Administrative
          Agent:                    Wells Fargo Bank Texas, National Association
                                    4975 Preston Park Road, Suite 280
                                    Plano, Texas 75093
                                    Attn.:  Michael B. Sullivan
                                    Telephone: (972) 559-5315
                                    Facsimile: (972) 867-5074

          with a copy to:           Winstead Sechrest & Minick P.C.
                                    1201 Elm Street, Suite 5400
                                    Dallas, Texas 75270
                                    Attn.:   James R. Littlejohn
                                    Telephone: (214) 745-5197
                                    Facsimile: (214) 745-5390

          if to the Agent:          JPMorgan Chase Bank
                                    2200 Ross Avenue
                                    Dallas, Texas 75201
                                    Attn.: D. Scott Harvey
                                    Telephone: (214) 965-3003
                                    Facsimile: (214) 965-3024

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<PAGE>
          with a copy to:           Baker Botts L.L.P.
                                    2001 Ross Avenue
                                    Dallas, Texas 75201
                                    Attn.:   Alison C. Boren
                                    Telephone: (214) 953-6827
                                    Facsimile: (214) 661-4827

         if to any Lender:          At the address set forth below its name in
                                    Schedule 2.02(a) hereto.

      SECTION 9.02. Waivers; Amendments. (a) No failure or delay by the Agent,
the Issuing Bank or any Lender in exercising any right or power hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce
such a right or power, preclude any other or further exercise thereof or the
exercise of any other right or power. The rights and remedies of the Agent, the
Issuing Bank and the Lenders hereunder are cumulative and are not exclusive of
any rights or remedies that they would otherwise have. No waiver of any
provision of this Agreement or consent to any departure by the Borrower
therefrom shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given.
Without limiting the generality of the foregoing, the making of a Loan or
issuance of a Letter of Credit shall not be construed as a waiver of any
Default, regardless of whether the Agent, any Lender or the Issuing Bank may
have had notice or knowledge of such Default at the time.

      (b) Neither this Agreement nor any provision hereof may be waived, amended
or modified except pursuant to an agreement or agreements in writing entered
into by the Borrower and the Required Lenders or by the Borrower, the
Administrative Agent, and the Agent with the consent of the Required Lenders;
provided that no such agreement shall (i) increase the Revolving Credit
Commitment or Seasonal Revolving Credit Commitment of any Lender without the
written consent of such Lender, (ii) reduce the principal amount of any Loan or
LC Disbursement or reduce the rate of interest thereon, or reduce any fees
payable hereunder, without the written consent of each Lender affected thereby,
(iii) postpone the scheduled date of payment of the principal amount of any Loan
or LC Disbursement, or any interest thereon, or any fees payable hereunder, or
reduce the amount of, waive or excuse any such payment, or postpone the
scheduled date of expiration of the Revolving Credit Commitment or Seasonal
Revolving Credit Commitment, without the written consent of each Lender affected
thereby, (iv) change Section 2.13 in a manner that would alter the pro rata
sharing of payments required thereby, without the written consent of each
Lender, (v) change the definition of "Seasonal Revolving Credit Availability
Period", (vi) change any of the provisions of this Section or the definition of
"Required Lenders" or any other provision hereof specifying the number or
percentage of Lenders required to waive, amend or modify any rights hereunder or
make any determination or grant any consent hereunder, (vii) waive any of the
conditions specified in Article IV, (viii) release Borrower from its obligations
to pay

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<PAGE>
any Lender's Loan or any Guarantor from its guaranty of such payment, or (ix)
release any Collateral (other than releases of Collateral that are expressly
permitted under any Credit Document) without the written consent of each Lender;
provided further that no such agreement shall amend, modify or otherwise affect
the rights or duties of the Administrative Agent, the Agent or the Issuing Bank
hereunder without the prior written consent of the Administrative Agent, the
Agent or the Issuing Bank, as the case may be. Notwithstanding anything to the
contrary contained herein, a waiver or modification in respect of Section 6.20
hereof shall not be deemed to be a release of Collateral under this Section
9.02(b).

      SECTION 9.03. Expenses; Indemnity, Damage Waiver (a) The Borrower shall
pay (i) all reasonable out-of-pocket expenses incurred by each of the
Administrative Agent and the Agent and each of its respective Affiliates,
including the reasonable fees, charges and disbursements of counsel for the
Agent, in connection with the syndication of the credit facilities provided for
herein, the preparation and administration of this Agreement or any amendments,
modifications or waivers of the provisions hereof (whether or not the
transactions contemplated hereby or thereby shall be consummated), (ii) all
reasonable out-of-pocket expenses incurred by the Issuing Bank in connection
with the issuance, amendment, renewal or extension of any Letter of Credit or
any demand for payment thereunder and (iii) all out-of-pocket expenses incurred
by the Administrative Agent, the Agent, the Issuing Bank or any Lender,
including the fees, charges and disbursements of any counsel for the
Administrative Agent, the Agent, the Issuing Bank or any Lender, in connection
with the enforcement or protection of its rights in connection with this
Agreement, including its rights under this Section, or in connection with the
Loans made or Letters of Credit issued hereunder, including all such
out-of-pocket expenses incurred during any workout, restructuring or
negotiations in respect of such Loans or Letters of Credit.

      (b) THE BORROWER SHALL INDEMNIFY EACH OF THE ADMINISTRATIVE AGENT, AGENT,
THE ISSUING BANK AND EACH LENDER, AND EACH RELATED PARTY OF ANY OF THE FOREGOING
PERSONS (EACH SUCH PERSON BEING CALLED IN THIS SECTION 9.03(B) AN "INDEMNITEE")
AGAINST, AND HOLD EACH INDEMNITEE HARMLESS FROM, ANY AND ALL LOSSES, CLAIMS,
DAMAGES, LIABILITIES AND RELATED EXPENSES, INCLUDING THE FEES, CHARGES AND
DISBURSEMENTS OF ANY COUNSEL FOR ANY INDEMNITEE, INCURRED BY OR ASSERTED AGAINST
ANY INDEMNITEE ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF EACH OF:
(I) THE EXECUTION OR DELIVERY OF THIS AGREEMENT, ANY OTHER CREDIT DOCUMENT, OR
ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY OR THEREBY, THE PERFORMANCE BY
THE PARTIES HERETO OF THEIR RESPECTIVE OBLIGATIONS HEREUNDER OR THEREUNDER OR
THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, (II) ANY
LOAN OR LETTER OF CREDIT OR THE USE OF THE PROCEEDS THEREFROM (INCLUDING ANY
REFUSAL BY THE ISSUING BANK TO HONOR A DEMAND FOR PAYMENT UNDER A LETTER OF
CREDIT IF THE DOCUMENTS PRESENTED IN CONNECTION WITH SUCH DEMAND DO NOT STRICTLY
COMPLY WITH THE TERMS OF SUCH LETTER OF CREDIT), (III) THE COLLATERAL OR THE
EXERCISE OF REMEDIES IN RESPECT OF

                                       87
<PAGE>
THE COLLATERAL, (IV) ANY ACTUAL OR ALLEGED PRESENCE OR RELEASE OF HAZARDOUS
MATERIALS ON OR FROM ANY PROPERTY OWNED OR OPERATED BY THE BORROWER OR ANY OF
ITS SUBSIDIARIES, OR ANY ENVIRONMENTAL LIABILITY RELATED IN ANY WAY TO THE
BORROWER OR ANY OF ITS SUBSIDIARIES, OR (V) ANY ACTUAL OR PROSPECTIVE CLAIM,
LITIGATION, INVESTIGATION OR PROCEEDING RELATING TO ANY OF THE FOREGOING,
WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY AND REGARDLESS OF WHETHER
ANY INDEMNITEE IS A PARTY THERETO. THE FOREGOING IS INTENDED TO INDEMNIFY AND
HOLD HARMLESS EACH INDEMNITEE TO THE EXTENT THAT SUCH LOSSES, CLAIMS, DAMAGES,
LIABILITIES, OR RELATED EXPENSES RESULTED FROM THE NEGLIGENCE OR ALLEGED
NEGLIGENCE OF SUCH INDEMNITEE (WHETHER SOLE, COMPARATIVE, CONTRIBUTORY, OR
OTHERWISE); PROVIDED THAT SUCH INDEMNITY SHALL NOT, AS TO ANY INDEMNITEE, BE
AVAILABLE TO THE EXTENT THAT SUCH LOSSES, CLAIMS, DAMAGES, LIABILITIES OR
RELATED EXPENSES RESULTED FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF
SUCH INDEMNITEE.

      (c) To the extent permitted by applicable law, the Borrower shall not
assert, and hereby waives, any claim against any Indemnitee, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed
to direct or actual damages) arising out of, in connection with, or as a result
of, this Agreement or any agreement or instrument contemplated hereby, any Loan
or Letter of Credit or the use of the proceeds thereof.

      (d) All amounts due under this Section shall be payable not later than 5
days after written demand therefor.

      SECTION 9.04. Successors and Assigns. (a) The provisions of this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby (including any Affiliate of
the Issuing Bank that issues any Letter of Credit), except that (i) the Borrower
may not assign or otherwise transfer any of its rights or obligations hereunder
without the prior written consent of each Lender (and any attempted assignment
or transfer by the Borrower without such consent shall be null and void) and
(ii) no Lender may assign or otherwise transfer its rights or obligations
hereunder except in accordance with this Section. Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby
(including any Affiliate of the Issuing Bank that issues any Letter of Credit),
Participants (to the extent provided in paragraph (c) of this Section) and, to
the extent expressly contemplated hereby, the Related Parties of each of the
Agent, the Issuing Bank and the Lenders) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

      (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below,
any Lender may assign to one or more assignees all or a portion of its rights
and obligations under this Agreement (including all or a portion of its Total
Commitment and the Loans at the time owing to it) with the prior written consent
(such consent not to be unreasonably withheld) of:

                                       88
<PAGE>
            (A) the Borrower, provided that no consent of the Borrower shall be
      required for an assignment to a Lender, an Affiliate of a Lender, an
      Approved Fund or, if an Event of Default under clause (a), (b), (e) or (f)
      of Article VII has occurred and is continuing, any other assignee; and

            (B) the Agent, provided that no consent of the Agent shall be
      required for an assignment of (x) any Revolving Credit Commitment to an
      assignee that is a Lender with a Revolving Credit Commitment immediately
      prior to giving effect to such assignment or (y) any Seasonal Revolving
      Credit Commitment to an assignee that is a Lender with a Seasonal
      Revolving Credit Commitment immediately prior to giving effect to such
      assignment

         (ii) Assignments shall be subject to the following additional
      conditions:

            (A) except in the case of an assignment to a Lender or an Affiliate
      of a Lender or an assignment of the entire remaining amount of the
      assigning Lender's Revolving Credit Commitment, Seasonal Revolving Credit
      Commitment, or Loans the amount of the Revolving Credit Commitment,
      Seasonal Revolving Credit Commitment or Loans of the assigning Lender
      subject to each such assignment (determined as of the date the Assignment
      and Assumption with respect to such assignment is delivered to the Agent)
      shall not be less than $5,000,000 unless each of the Borrower and the
      Agent otherwise consent, provided that no such consent of the Borrower
      shall be required if an Event of Default under clause (a), (b), (e) or (f)
      of Article VII has occurred and is continuing;

            (B) each partial assignment shall be made as an assignment of a
      proportionate part of all the assigning Lender's rights and obligations
      under this Agreement, provided that this clause shall not be construed to
      prohibit the assignment of a proportionate part of all the assigning
      Lender's rights and obligations in respect of either the Revolving Credit
      Commitments and Revolving Credit Loans or the Seasonal Revolving Credit
      Commitment and Seasonal Revolving Credit Loans;

            (C) the parties to each assignment shall execute and deliver to the
      Agent an Assignment and Assumption, together with a processing and
      recordation fee of $3,500; and

            (D) the assignee, if it shall not be a Lender, shall deliver to the
      Agent means an Administrative Questionnaire in a form supplied by the
      Agent.

            For the purposes of this Section 9.04(b), the term "Approved Fund"
has the following meaning:

      "Approved Fund" means any Person (other than a natural person) that is
engaged in making, purchasing, holding or investing in bank loans and similar
extensions of credit

                                       89
<PAGE>
in the ordinary course of its business and that is administered or managed by
(a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of
an entity that administers or manages a Lender.

            (iii) Subject to acceptance and recording thereof pursuant to
paragraph (b)(iv) of this Section, from and after the effective date specified
in each Assignment and Assumption the assignee thereunder shall be a party
hereto and, to the extent of the interest assigned by such Assignment and
Assumption, have the rights and obligations of a Lender under this Agreement,
and the assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Assumption, be released from its obligations
under this Agreement (and, in the case of an Assignment and Assumption covering
all of the assigning Lender's rights and obligations under this Agreement, such
Lender shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.10, 2.11, 2.12, and 9.03). Any assignment or transfer by
a Lender of rights or obligations under this Agreement that does not comply with
this Section 9.04 shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance with
paragraph (c) of this Section.

            (iv) The Agent, acting for this purpose as an agent of the Borrower,
shall maintain at one of its offices a copy of each Assignment and Assumption
delivered to it and a register for the recordation of the names and addresses of
the Lenders, and the Total Commitment of, and principal amount of the Loans and
LC Disbursements owing to, each Lender pursuant to the terms hereof from time to
time (the "Register"). The entries in the Register shall be conclusive, and the
Borrower, the Agent, the Issuing Bank and the Lenders may treat each Person
whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary. The Register shall be available for inspection by the Borrower, the
Issuing Bank and any Lender, at any reasonable time and from time to time upon
reasonable prior notice.

            (v) Upon its receipt of a duly completed Assignment and Assumption
executed by an assigning Lender and an assignee, the assignee's completed
administrative questionnaire (unless the assignee shall already be a Lender
hereunder), the processing and recordation fee referred to in paragraph (b) of
this Section and any written consent to such assignment required by paragraph
(b) of this Section, the Agent shall accept such Assignment and Assumption and
record the information contained therein in the Register. No assignment shall be
effective for purposes of this Agreement unless it has been recorded in the
Register as provided in this paragraph.

      (c) (i) Any Lender may, without the consent of the Borrower, the Agent or
the Issuing Bank, sell participations to one or more banks or other entities (a
"Participant") in all or a portion of such Lender's rights and obligations under
this Agreement (including all or a portion of its Total Commitment and the Loans
owing to it); provided that (A) such Lender's obligations under this Agreement
shall remain unchanged, (B) such Lender shall remain solely responsible to the
other parties hereto for

                                       90
<PAGE>
the performance of such obligations and (C) the Borrower, the Agent, the Issuing
Bank and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender's rights and obligations under this
Agreement. Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant, agree
to any amendment, modification or waiver described in the first proviso to
Section 9.02(b) that affects such Participant. Subject to paragraph (c)(ii) of
this Section, the Borrower agrees that each Participant shall be entitled to the
benefits of Sections 2.10, 2.11, 2.12, to the same extent as if it were a Lender
and had acquired its interest by assignment pursuant to paragraph (b) of this
Section. To the extent permitted by law, each Participant also shall be entitled
to the benefits of Section 9.08 as though it were a Lender, provided such
Participant agrees to be subject to Section 2.13(c) as though it were a Lender.

            (ii) A Participant shall not be entitled to receive any greater
payment under Section 2.10 or 2.12 than the applicable Lender would have been
entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with the
Borrower's prior written consent. A Participant that would be a Foreign Lender
if it were a Lender shall not be entitled to the benefits of Section 2.12 unless
the Borrower is notified of the participation sold to such Participant and such
Participant agrees, for the benefit of the Borrower, to comply with Section
2.12(e) as though it were a Lender.

      (d) Any Lender may at any time pledge or assign a security interest in all
or any portion of its rights under this Agreement to secure obligations of such
Lender, including without limitation any pledge or assignment to secure
obligations to a Federal Reserve Bank, and this Section shall not apply to any
such pledge or assignment of a security interest; provided that no such pledge
or assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such Lender
as a party hereto.

      SECTION 9.05. Survival. All covenants, agreements, representations and
warranties made by the Borrower herein and in the certificates or other
instruments delivered in connection with or pursuant to this Agreement shall be
considered to have been relied upon by the other parties hereto and shall
survive the execution and delivery of this Agreement and the making of any Loans
and issuance of any Letters of Credit, regardless of any investigation made by
any such other party or on its behalf and notwithstanding that the Agent, the
Issuing Bank or any Lender may have had notice or knowledge of any Default or
incorrect representation or warranty at the time any credit is extended
hereunder, and shall continue in full force and effect as long as the principal
of or any accrued interest on any Loan or any fee or any other amount payable
under this Agreement is outstanding and unpaid or any Letter of Credit is
outstanding and so long as the Total Commitments have not expired or terminated.
The provisions of Sections 2.10,

                                       91
<PAGE>
2.11, 2.12, and 9.03 and Article VIII shall survive and remain in full force and
effect regardless of the consummation of the transactions contemplated hereby,
the repayment of the Loans, the expiration or termination of the Letters of
Credit and the Total Commitments or the termination of this Agreement or any
provision hereof.

      SECTION 9.06. Counterparts; Integration; Effectiveness. This Agreement may
be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which when
taken together shall constitute a single contract. This Agreement and any
separate letter agreements with respect to fees payable to the Agent constitute
the entire contract among the parties relating to the subject matter hereof and
supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof. Except as provided in Sections 4.01 and
4.02, this Agreement shall become effective when it shall have been executed by
the Agent and when the Agent shall have received counterparts hereof which, when
taken together, bear the signatures of each of the other parties hereto, and
thereafter shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. Delivery of an executed counterpart
of a signature page of this Agreement by telecopy shall be effective as delivery
of a manually executed counterpart of this Agreement.

         SECTION 9.07. Severability. Any provision of this Agreement held to be
invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

      SECTION 9.08. Right of Set-off. If an Event of Default shall have occurred
and be continuing, each Lender and each of its Affiliates is hereby authorized
at any time and from time to time, to the fullest extent permitted by law
(except as provided in any Lender Control Agreement), to set off and apply any
and all deposits (general or special, time or demand, provisional or final) at
any time held and other obligations at any time owing by such Lender or
Affiliate to or for the credit or the account of the Borrower against any of and
all the Obligations held by such Lender, irrespective of whether or not such
Lender shall have made any demand under this Agreement and although such
Obligations may be unmatured; provided, however, that each Lender agrees that
all proceeds of each such set off or application shall be promptly remitted to
the Agent and applied to the payment of the Obligations as set forth in the
Intercreditor Agreement. The rights of each Lender under this Section are in
addition to other rights and remedies (including other rights of setoff) which
such Lender may have.

      SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process.

      (a) This Agreement shall be construed in accordance with and governed by
the law of the State of Texas; provided, that the Administrative Agent, the
Agent, and each Lender shall retain all rights arising under federal law.

                                       92
<PAGE>
      (b) Subject to the requirement for arbitration pursuant to Section 9.14
hereof, the Borrower hereby irrevocably and unconditionally submits, for itself
and its property, to the nonexclusive jurisdiction of the courts of the State of
Texas situated in Dallas County or of the United States District Court for the
Northern District of Texas, Dallas Division, and any appellate court from any
thereof, in any action or proceeding arising out of or relating to this
Agreement, or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all claims in
respect of any such action or proceeding may be heard and determined in such
Texas State or, to the extent permitted by law, in such Federal court. Each of
the parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement shall
affect any right that the Agent, the Issuing Bank or any Lender may otherwise
have to bring any action or proceeding relating to this Agreement against the
Borrower or its properties in the courts of any jurisdiction.

      (c) The Borrower hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which it may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Agreement in any court referred to in
paragraph (b) of this Section. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

      (d) Each party to this Agreement irrevocably consents to service of
process in the manner provided for notices in Section 9.01. Nothing in this
Agreement will affect the right of any party to this Agreement to serve process
in any other manner permitted by law.

      SECTION 9.10. WAIVER OF JURY TRIAL EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

      SECTION 9.11. Headings. Article and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of this
Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

                                       93
<PAGE>
      SECTION 9.12. Confidentiality. Each of the Agent, the Issuing Bank and the
Lenders agrees to maintain the confidentiality of the Information (as defined
below), except that Information may be disclosed (a) to its and its Affiliates'
directors, officers, employees and agents, including accountants, legal counsel
and other advisors (it being understood that the Persons to whom such disclosure
is made will be informed of the confidential nature of such Information and
instructed to keep such Information confidential), (b) to the extent requested
by any regulatory authority, (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (d) to any other party
to this Agreement, (e) in connection with the exercise of any remedies hereunder
or any suit, action or proceeding relating to this Agreement or the enforcement
of rights hereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or
Participant in, or any prospective assignee of or Participant in, any of its
rights or obligations under this Agreement or (ii) any actual or prospective
counterparty (or its advisors) to any swap or derivative transaction relating to
the Borrower and its obligations, (g) with the consent of the Borrower or (h) to
the extent such Information (i) becomes publicly available other than as a
result of a breach of this Section or (ii) becomes available to the Agent, the
Issuing Bank or any Lender on a nonconfidential basis from a source other than
the Borrower; provided, however, that with respect to disclosures of Information
pursuant to clauses (b) and (c) above, unless prohibited by law or applicable
court order, each Lender, Issuing Bank, and the Agent shall make a reasonable
attempt to notify the Borrower of any request by any governmental agency or
representative thereof for disclosure of such Information after receipt of such
request, and, if reasonable, practicable, and permissible, before such
disclosure (it being understood that Borrower and its Subsidiaries may rely upon
this Section 9.12 in order to comply with Regulation FD promulgated by the
Securities Exchange Commission as of the date hereof ("Regulation FD")). For the
purposes of this Section, "Information" means all information (including
material non-public information within the meaning of Regulation FD) received
from the Borrower relating to the Borrower or its business, other than any such
information that is available to the Agent, the Issuing Bank or any Lender on a
nonconfidential basis prior to disclosure by the Borrower; provided that, in the
case of information received from the Borrower after the date hereof, such
information is clearly identified at the time of delivery as confidential. Any
Person required to maintain the confidentiality of Information as provided in
this Section shall be considered to have complied with its obligation to do so
if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own
confidential information.

      SECTION 9.13. Interest. (a) It is the intention of the parties hereto that
the Agent and each Lender shall conform strictly to usury laws applicable to it,
if any. Accordingly, if the transactions with the Agent or any Lender
contemplated hereby would be usurious under applicable law, then, in that event,
notwithstanding anything to the contrary in this Agreement, the Notes, or any
other Credit Document, it is agreed as follows: (i) the aggregate of all
consideration which constitutes interest under applicable law that is contracted
for, taken, reserved, charged or received by the Agent or such

                                       94
<PAGE>
Lender, as the case may be, under this Agreement, the Notes, or under any other
Credit Document shall under no circumstances exceed the maximum amount allowed
by such applicable law and any excess shall be canceled automatically and, if
theretofore paid, shall at the option of the Agent or such Lender be credited by
the Agent or such Lender on the principal amount of the obligations owed to the
Agent or such Lender by the Borrower or refunded by the Agent or such Lender to
the Borrower, and (ii) in the event that the maturity of any Loan or any Note or
other Obligation payable to the Agent or such Lender is accelerated or in the
event of any required or permitted prepayment, then such consideration that
constitutes interest under law applicable to the Agent or such Lender may never
include more than the maximum amount allowed by such applicable law and excess
interest, if any, to the Agent or such Lender provided for in this Agreement or
otherwise shall be canceled automatically as of the date of such acceleration or
prepayment and, if theretofore paid, shall, at the option of the Agent or such
Lender be credited by the Agent or such Lender on the principal amount of the
obligations owed to the Agent or such Lender by the Borrower or refunded by the
Agent or such Lender to the Borrower. It is further agreed that without
limitation of the foregoing, that all calculations of the rate of interest
contracted for, charged or received by any Lender in respect of the Loans made
by it or under the Notes held by it, or under this Agreement, shall be made, to
the extent permitted by usury laws applicable to such Lender (now or hereafter
enacted) by amortizing, prorating and spreading in equal parts during the period
of the full stated term of said Loans or Notes all interest at any time
contracted for, taken, charged, reserved or received by such Lender in
connection therewith.

      (b) In the event that at any time the interest rate applicable to any Loan
made by any Lender would exceed the maximum non-usurious rate allowed by
applicable law, the rate of interest to accrue on the Loans by such Lender shall
be limited to the maximum non-usurious rate allowed by applicable law, but shall
accrue, to the extent permitted by law, on the principal amount of the Loans
made by such Lender from time to time outstanding, if any, at the maximum
nonusurious rate allowed by applicable law until the total amount of interest
accrued on the Loans made by such Lender equals the amount of interest which
would have accrued if the interest rates applicable to the Loans pursuant to
Article II had at all times been in effect. In the event that upon the final
payment of the Loans made by any Lender and termination of the Total Commitment
of such Lender, the total amount of interest paid to such Lender hereunder and
under the Notes is less than the total amount of interest which would have
accrued if the interest rates applicable to such Loans pursuant to Article II
had at all times been in effect, then the Borrower agrees to pay to such Lender,
to the extent permitted by law, an amount equal to the excess of (i) the lesser
of (x) the amount of interest which would have accrued on such Loans if the
maximum nonusurious rate allowed by applicable law had at all times been in
effect or (y) the amount of interest rates applicable to such Loans pursuant to
Article II had at all times been in effect over (ii) the amount of interest
otherwise accrued on such Loans in accordance with this Agreement.

      SECTION 9.14. [RESERVED].

                                       95
<PAGE>
      SECTION 9.15. Nonapplicability of Chapter 346 et seq. The Borrower, the
Agent and the Lenders hereby agree that the provisions of Chapter 346 of the
Texas Finance Code, which replaced Tex. Rev. Civ. Stat. Ann. art. 5069-15.01 et
seq. (Vernon 1987) (regulating certain revolving credit loans and revolving
tri-party accounts), shall not apply to this Agreement or any of the other
Credit Documents.

      SECTION 9.16. Waiver of Consumer Rights. THE BORROWER HEREBY WAIVES ITS
RIGHTS UNDER THE DECEPTIVE TRADE PRACTICES-CONSUMER PROTECTION ACT, SECTION
17.41 ET. SEQ. BUSINESS & COMMERCE CODE, A LAW THAT GIVES CONSUMERS SPECIAL
RIGHTS AND PROTECTIONS. AFTER CONSULTATION WITH AN ATTORNEY OF ITS OWN
SELECTION, THE BORROWER VOLUNTARILY CONSENTS TO THIS WAIVER. THE BORROWER
EXPRESSLY WARRANTS AND REPRESENTS THAT IT (a) IS NOT IN A SIGNIFICANTLY
DISPARATE BARGAINING POSITION RELATIVE TO THE AGENT AND THE LENDERS, AND (b) HAS
BEEN REPRESENTED BY LEGAL COUNSEL IN CONNECTION WITH THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT.

      SECTION 9.17. Entire Agreement. PURSUANT TO SECTION 26.02 OF THE TEXAS
BUSINESS AND COMMERCE CODE, A LOAN AGREEMENT IN WHICH THE AMOUNT INVOLVED IN THE
LOAN AGREEMENT EXCEEDS $50,000 IN VALUE IS NOT ENFORCEABLE UNLESS THE LOAN
AGREEMENT IS IN WRITING AND SIGNED BY THE PARTY TO BE BOUND OR THAT PARTY'S
AUTHORIZED REPRESENTATIVE. THE RIGHTS AND OBLIGATIONS OF THE PARTIES TO AN
AGREEMENT SUBJECT TO THE PRECEDING PARAGRAPH SHALL BE DETERMINED SOLELY FROM THE
WRITTEN LOAN AGREEMENT, AND ANY PRIOR ORAL AGREEMENTS BETWEEN THE PARTIES
RELATED TO SUCH LOAN AGREEMENT ARE SUPERSEDED BY AND MERGED INTO THE LOAN
AGREEMENT. THIS WRITTEN AGREEMENT AND THE CREDIT DOCUMENTS, AS DEFINED IN THIS
AGREEMENT, REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.

      SECTION 9.18. Amendment and Restatement of Existing Credit Agreement. Upon
satisfaction with each of the conditions set forth in Sections 4.01 and 4.02
(except any condition the performance of which has been waived as a condition to
the making of the initial Loans or initial issuance of Letters of Credit
pursuant to this Agreement), this Agreement shall be deemed to amend and restate
in its entirety the Existing Credit Agreement, at which time each Lender and
Borrower hereby agrees that (i) the Total Commitment of each Lender shall be as
set forth in the definition of such term in this Agreement, and (ii) the
Revolving Credit Loans and Seasonal Revolving Credit Loans outstanding under the
Existing Credit Agreement and all accrued and unpaid interest thereon, and all
accrued and unpaid fees and expenses under the Existing Credit Agreement, shall
be extended, renewed, and deemed to be outstanding under

                                       96
<PAGE>
and governed by this Agreement; provided, however, that in no event shall the
Liens or Guaranty Agreements securing the Existing Credit Agreement or the
obligations thereunder be deemed affected hereby, it being the intent and
agreement of the Borrower that the Guaranty Agreements and the Liens on the
Collateral granted to secure the obligations of the Borrower and its
Subsidiaries in connection with the Existing Credit Agreement and/or the
Guaranty Agreements, shall not be extinguished and shall remain valid, binding
and enforceable securing the obligations under the Existing Credit Agreement as
amended and restated hereby.

      Section 9.19. Documentation Agent and Syndication Agent. The Lenders
identified on the facing page of this Agreement as "Syndication Agent" and
"Documentation Agent", respectively, have no right, power, obligation,
liability, responsibility or duty under this Agreement other than those
applicable to all Lenders as such. Without limitation of the foregoing, the
Lenders so identified as "Syndication Agent" and "Documentation Agent",
respectively, shall not have and shall not be deemed to have any fiduciary
relationship with any Lender. Each Lender acknowledges that it has not relied,
and will not rely, on the Lenders so identified as "Syndication Agent" and
"Documentation Agent", respectively, in taking or not taking action hereunder.

              [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       97
<PAGE>
      IN WITNESS WHEREOF, the Borrower and the parties hereto have caused this
Agreement to be duly executed by their respective authorized officers as of the
day and year first above written.

                                          ACE CASH EXPRESS, INC., as Borrower

                                          By: /s/ JOE W. CONNER
                                              Name:  Joe W. Conner
                                              Title: Senior Vice President
                                                     and Chief Financial Officer
<PAGE>
                                          ACE CASH EXPRESS, INC., as Borrower

                                          By: /s/ JOE W. CONNER
                                              ------------------
                                              Name:  Joe W. Conner
                                              Title: Senior Vice President
                                                     and Chief Financial Officer

                                          WELLS FARGO BANK TEXAS, NATIONAL
                                          ASSOCIATION, as Administrative Agent,
                                          Issuing Bank, and as a Lender

                                          By:  /s/ MICHAEL B. SULLIVAN
                                               -----------------------
                                               Name:  Michael B. Sullivan
                                               Title: Senior Vice President

                                          JPMORGAN CHASE BANK, as Agent and
                                          as a Lender

                                          By:  /s/ D. SCOTT HARVEY
                                               ------------------------
                                               Name:  D. Scott Harvey
                                               Title: Senior Vice President

                                          BANK OF AMERICA, N.A., as a Lender

                                          By:  /s/ PATRICK HONEY
                                               -----------------
                                               Name:  Patrick Honey
                                               Title: Vice President

                                          WACHOVIA BANK, NATIONAL
                                          ASSOCIATION, as a Lender

                                          By:  /s/ JOEL THOMAS
                                               ------------------
                                               Name:  Joel Thomas
                                               Title: Director
<PAGE>
                                          NATIONAL CITY BANK, as a Lender

                                          By:  /s/ MICHAEL J. DURBIN
                                               ---------------------
                                               Name:  Michael J. Durbin
                                               Title: Senior Vice President

                                          FIRST AMERICAN BANK, SSB, as a Lender

                                          By:  /s/ PAUL VOORHIES
                                               ----------------
                                               Name:  Paul Voorhies
                                               Title: Vice President

                                          TEXAS CAPITAL BANK, NATIONAL
                                          ASSOCIATION, as a Lender

                                          By:  /s/ RONALD K. BAKER
                                               ---------------------
                                               Name:  Ronald K. Baker
                                               Title: Executive Vice President

                                          SOUTHWEST BANK OF TEXAS, N.A., as a
                                          Lender

                                          By:  /s/ MELINDA N. JACKSON
                                               ----------------------
                                               Name:  Melinda N. Jackson
                                               Title: Senior Vice President
<PAGE>
                                          US BANK NATIONAL ASSOCIATION, as a
                                          Lender

                                          By:  /s/ JOSEPH L SOOTER, JR.
                                               --------------------------
                                               Name:  Joseph L. Sooter, Jr.
                                               Title: Vice President

<PAGE>

EXHIBIT A

                         [FORM OF REVOLVING CREDIT NOTE]

U.S. $____________                Dallas, Texas                   March 31, 2003

         FOR VALUE RECEIVED, the undersigned, ACE CASH EXPRESS, INC., a Texas
corporation (the "Borrower"), HEREBY PROMISES TO PAY to the order of
__________________ (the "Lender"), for the account of its Applicable Lending
Office, as defined in that certain Credit Agreement, dated as of the date
hereof, by and among the Borrower, the Lender, certain other lenders from time
to time parties thereto (collectively, the "Lenders"), and Wells Fargo Bank
Texas, National Association, as Administrative Agent for the Lenders, (as
amended, modified or supplemented from time to time, the "Credit Agreement")
(capitalized terms used herein and not otherwise defined shall have the meanings
set forth in the Credit Agreement) or any other office designated by the Lender,
the lesser of (i) the principal sum of __________________ DOLLARS
($________________), or (ii) the aggregate unpaid principal amount of all
Revolving Credit Loans made by the Lender to the Borrower pursuant to the Credit
Agreement.

         The Borrower promises to pay interest on the unpaid principal amount of
each Revolving Credit Loan from the date of such Revolving Credit Loan until
such principal amount is paid in full, at such interest rates, and payable at
such times, as are specified in the Credit Agreement.

         Both principal and interest are payable in lawful money of the United
States of America to Lender at Agent's principal place of business in New York,
New York, in same day funds. Each Revolving Credit Loan made by the Lender to
the Borrower and all payments made on account of principal thereof, shall be
recorded by the Lender and, prior to any transfer hereof, endorsed on the grid
attached hereto which is part of this Revolving Credit Note (this "Note"),
provided, however, that failure of the Lender to make such notation or any error
therein shall not in any manner affect the obligation of the Borrower to repay
such Revolving Credit Loans in accordance with the terms of this Note.

         This Note is one of the Revolving Credit Notes referred to in, and is
subject to and entitled to the benefits of, the Credit Agreement. This Note is
secured by the Collateral described in the Credit Documents. The Credit
Agreement, among other things, (i) provides for the making of Revolving Credit
Loans by the Lender to the Borrower from time to time pursuant to Section 2.01
of the Credit Agreement in an aggregate outstanding amount not to exceed at any
time the U.S. dollar amount first above mentioned, the indebtedness of the
Borrower resulting from each such Revolving Credit Loan being evidenced by this
Note, and (ii) contains provisions for acceleration of the maturity hereof upon
the happening of certain stated events and also for prepayments on account of
principal hereof prior to the maturity hereof upon the terms and conditions
therein specified.

                                       1
<PAGE>

         The Borrower hereby waives presentment, demand, protest, notice of
intent to accelerate, notice of acceleration and any other notice of any kind,
except as provided in the Credit Agreement. No failure to exercise, and no delay
in exercising, any rights hereunder on the part of the holder hereof shall
operate as a waiver of such rights.

         This Note amends, modifies and restates, but does not extinguish or
constitute a novation of, the indebtedness evidenced by that certain Amended and
Restated Revolving Credit Note dated November ___, 2002 in the principal amount
of $____________ executed by the Borrower and payable to the order of the
Lender. All rights, titles, liens and security interests securing the prior note
are preserved, maintained and carried forward to secure this Note.

         THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF TEXAS (EXCEPT THAT THE PROVISIONS OF CHAPTER 346 OF THE
TEXAS FINANCE CODE, WHICH REGULATES CERTAIN REVOLVING CREDIT LOAN ACCOUNTS,
SHALL NOT APPLY TO THIS NOTE).

                                          ACE CASH EXPRESS, INC.

                                          By:
                                             --------------------------------
                                          Name:
                                               ------------------------------
                                          Title:
                                                -----------------------------

                                        2
<PAGE>

                                LOANS, MATURITIES
                     AND PAYMENTS OF PRINCIPAL AND INTEREST

<Table>
<Caption>
                         Rate of     Amount of   Amount of
              Amount     Interest    Principal    Interest   Unpaid
Borrowing    and Type   Applicable    Paid or     Paid or   Principal   Notation
  Date       of Loan     to Loan      Prepaid     Prepaid    Balance     Made By
---------    --------   ----------   ---------   ---------  ---------   --------
<S>          <C>        <C>          <C>         <C>        <C>         <C>

</Table>

                                        3

<PAGE>

EXHIBIT B

                    [FORM OF SEASONAL REVOLVING CREDIT NOTE]

U.S. $______________              Dallas, Texas                   March 31, 2003

         FOR VALUE RECEIVED, the undersigned, ACE CASH EXPRESS, INC., a Texas
corporation (the "Borrower"), HEREBY PROMISES TO PAY to the order of
_________________________ (the "Lender"), for the account of its Applicable
Lending Office (as defined in that certain Credit Agreement, dated as of March
31, 2003, by and among the Borrower, the Lender, certain other lenders from time
to time parties thereto (collectively, the "Lenders"), Wells Fargo Bank Texas,
National Association, as Administrative Agent for the Lenders, (as amended,
modified or supplemented from time to time, the "Credit Agreement") (capitalized
terms used herein and not otherwise defined shall have the meanings set forth in
the Credit Agreement) or any other office designated by the Lender, the lesser
of (i) the principal sum of ______________________________ DOLLARS
($______________), or (ii) the aggregate unpaid principal amount of all Seasonal
Revolving Credit Loans made by the Lender to the Borrower pursuant to the Credit
Agreement.

         The Borrower promises to pay interest on the unpaid principal amount of
each Seasonal Revolving Credit Loan from the date of such Seasonal Revolving
Credit Loan until such principal amount is paid in full, at such interest rates,
and payable at such times, as are specified in the Credit Agreement.

         Both principal and interest are payable in lawful money of the United
States of America to Lender at Agent's principal place of business in New York,
New York, in same day funds. Each Seasonal Revolving Credit Loan made by the
Lender to the Borrower and all payments made on account of principal thereof,
shall be recorded by the Lender and, prior to any transfer hereof, endorsed on
the grid attached hereto which is part of this Seasonal Revolving Credit Note
(this "Note"), provided, however, that failure of the Lender to make such
notation or any error therein shall not in any manner affect the obligation of
the Borrower to repay such Seasonal Revolving Credit Loans in accordance with
the terms of this Note.

         This Note is one of the Seasonal Revolving Credit Notes referred to in,
and is subject to and entitled to the benefits of, the Credit Agreement. This
Note is secured by the Collateral described in the Credit Documents. The Credit
Agreement, among other things, (i) provides for the making of Seasonal Revolving
Credit Loans by the Lender to the Borrower from time to time pursuant to Section
2.01 of the Credit Agreement in an aggregate outstanding amount not to exceed at
any time the U.S. dollar amount first above mentioned, the indebtedness of the
Borrower resulting from each such Seasonal Revolving Credit Loan being evidenced
by this Note, and (ii) contains provisions for acceleration of the maturity
hereof upon the happening of certain stated events and also for prepayments on
account of principal hereof prior to the maturity hereof upon the terms and
conditions therein specified.

<PAGE>

         The Borrower hereby waives presentment, demand, protest, notice of
intent to accelerate, notice of acceleration and any other notice of any kind,
except as provided in the Credit Agreement. No failure to exercise, and no delay
in exercising, any rights hereunder on the part of the holder hereof shall
operate as a waiver of such rights.

         THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF TEXAS (EXCEPT THAT THE PROVISIONS OF CHAPTER 346 OF THE
TEXAS FINANCE CODE, WHICH REGULATES CERTAIN REVOLVING CREDIT LOAN ACCOUNTS,
SHALL NOT APPLY TO THIS NOTE).

                                           ACE CASH EXPRESS, INC.

                                           By:
                                              ---------------------------------
                                           Name:
                                                -------------------------------
                                           Title:
                                                 ------------------------------

                                       2
<PAGE>

                                LOANS, MATURITIES
                     AND PAYMENTS OF PRINCIPAL AND INTEREST

<Table>
<Caption>
                                      Rate of     Amount of
                                     Interest     Principal      Amount of       Unpaid
                     Amount and     Applicable     Paid or     Interest Paid    Principal   Notation
 Borrowing Date     Type of Loan     to Loan       Prepaid      or Prepaid       Balance     Made By
 --------------     ------------    ----------    ---------    -------------    ---------   --------
<S>                 <C>             <C>           <C>          <C>              <C>         <C>

</Table>

                                       3
<PAGE>

EXHIBIT C

                         [FORM OF BORROWING BASE REPORT]

Borrowing Base Report for Week Beginning Sunday ___, 200__ and Ending Saturday
___, 200__ (the "Prior Week"):

All capitalized terms used herein, unless otherwise defined herein, shall have
the meanings set forth in that certain Credit Agreement, dated as
[_________________], 2003, by and among ACE Cash Express, Inc. (the "Borrower"),
Wells Fargo Bank Texas, National Association, as Administrative Agent, and the
other Lenders party thereto (as amended, supplemented or extended from time to
time, the "Agreement").

<Table>
<Caption>
1. Calculation of the Borrower's Cash Holdings and
the Guarantors' Cash Holdings as of the end of the
Prior Week:                                             Sunday      Monday    Tuesday   Wednesday    Thursday    Friday   Saturday
                                                       --------    -------    -------   ---------    --------   -------   --------
<S>                                                    <C>         <C>        <C>        <C>         <C>        <C>       <C>

    a. Aggregate amount of cash of the Borrower
and each of its Subsidiaries that is a Guarantor
(the "Guarantors") in their respective stores as
of the end of the Prior Week.                          $           $          $          $           $          $          $
                                                       --------    -------    -------    --------    -------    -------    -------

    b. Aggregate amounts of deposits of the
Borrower and the Guarantors held in depository
accounts with financial institutions.                  $           $          $          $           $          $          $
                                                       --------    -------    -------    --------    -------    -------    -------

    c. Aggregate dollar amount of checks which are
payable to the order of, or endorseable to the
order of, the Borrower and/or the Guarantors,
other than checks which have been deposited into
any deposit or other account (i.e., the aggregate
dollar amount of all checks in the Borrower's
and/or the Guarantor's stores or in transit with
any armored couriers).                                 $           $          $          $           $          $          $
                                                       --------    -------    -------    --------    -------    -------    -------

    d. Aggregate amount of cash of the Borrower
and the Guarantors in transit with armored
couriers.                                              $           $          $          $           $          $          $
                                                       --------    -------    -------    --------    -------    -------    -------

    e. Total Borrower's Cash Holdings and
Guarantors' Cash Holdings as of the end of the
Prior Week (sum of a through d above).                 $           $          $          $           $          $          $
                                                       --------    -------    -------    --------    -------    -------    -------

2. Less: Aggregate amount owed by the Borrower and
its Subsidiaries to Travelers Express Company,
Inc. under the Money Order Agreement dated April
16, 1998, as of the end of the Prior Week.             $           $          $          $           $          $          $
                                                       --------    -------    -------    --------    -------    -------    -------

3. Less: Aggregate amount of any cash and/or
checks received and/or held by the Borrower or the
Guarantors for payment to third parties,
including, but not limited to, cash and checks
received by the Borrower or a Subsidiary for the
purchase of lottery tickets or the payment of any
type of bill on behalf of a customer, in excess of
$12,500,000.                                           $           $          $          $           $          $          $
                                                       --------    -------    -------    --------    -------    -------    -------

4. Equals: Amount available for Borrowing, subject
to the terms of the Agreement, before taking into
account the outstanding principal amount of all
Revolving Credit Loans and Seasonal Revolving
Credit Loans.                                          $           $          $          $           $          $          $
                                                       --------    -------    -------    --------    -------    -------    -------

5. Less: Aggregate principal amount of a Revolving
Credit Loans and Seasonal Revolving Credit Loans
outstanding as of the end of the Prior Week.           $           $          $          $           $          $          $
                                                       --------    -------    -------    --------    -------    -------    -------

6. Equals: Net Amount Available for Borrowing,
subject to the terms of the Agreement, if
positive, or amount due, if negative.                  $           $          $          $           $          $          $
                                                       ========    =======    =======    ========    =======    =======    =======
</Table>

The undersigned hereby certifies that the above information and computations are
true and correct and not misleading as of the date hereof.

ACE CASH EXPRESS, INC.

By:
   ---------------------------------------
Name:
     -------------------------------------
Title:
      ------------------------------------
Date:
     -------------------------------------

<PAGE>

EXHIBIT D

                           [FORM OF BORROWING NOTICE]

                                  _______, 200_

Wells Fargo Bank Texas, National Association,
            as Administrative Agent
4975 Preston Park Road, Suite 280
Plano, Texas 75093

         Attention:  Loan Administration

Ladies and Gentlemen:

         The undersigned, ACE Cash Express, Inc., a Texas corporation (the
"Borrower"), refers to the Credit Agreement, dated as of March 31, 2003 (as
amended, supplemented, restated, or otherwise modified, the "Credit Agreement";
capitalized terms defined therein and not defined herein being used herein as
therein defined), among the undersigned, certain Lenders parties thereto, and
Wells Fargo Bank Texas, National Association, as Administrative Agent for such
Lenders, and hereby gives you notice, irrevocably pursuant to Section 2.03 of
the Credit Agreement, that the undersigned hereby requests a borrowing under, or
the issuance of a Letter of Credit under, the Credit Agreement, and in that
connection sets forth below the information relating to such a borrowing or such
issuance (the "Proposed Borrowing") as required by Section 2.03 of the Credit
Agreement:

(A)      Borrowing Date of a Proposed Borrowing
         (which is a Business Day)
                                                       ------------------------

(B)      Aggregate Principal Amount of Proposed
         Borrowing
                                                       ------------------------

(C)      Revolving Credit Loan or Seasonal Revolving
         Credit Loan
                                                       ------------------------

(D)      Eurodollar Loan, Reference Rate Loan, or
         ABR Loan
                                                       ------------------------

(E)      Interest Period (if applicable)
                                                       ------------------------

         The undersigned hereby certifies that the following statements are true
on the date hereof, and will be true on the date of the Proposed Borrowing:

                                       1
<PAGE>

         (a) the representations and warranties contained in Article III of the
Credit Agreement are true and correct in all material respects on and as of the
date of the Proposed Borrowing, before and after giving effect to the Proposed
Borrowing and to the application of the proceeds therefrom, as though made on
and as of such date;

         (b) no event has occurred and is continuing, or would result from the
Proposed Borrowing or from the application of the proceeds therefrom, which
constitutes an Event of Default or a Default;

         (c) after giving effect to the Proposed Borrowing, the aggregate
principal amount of all Loans outstanding plus the amount of the LC Exposure
does not exceed the lesser of (i) the Total Commitment then in effect or (ii)
the amount of the Borrowing Base on the date of the Proposed Borrowing.

         (d) the proceeds of such Proposed Borrowing will be used only to fund
Borrower's working capital requirements in the ordinary course of its business.

                                                Sincerely,

                                                ACE CASH EXPRESS, INC.

                                                By:
                                                   ---------------------------
                                                Name:
                                                     -------------------------
                                                Title:
                                                      ------------------------

                                        2

<PAGE>

EXHIBIT E

                    FORM OF GLOBAL ASSIGNMENT AND ACCEPTANCE

                  Reference is made to the Amended and Restated Credit
Agreement, dated as of November 9, 2000 (as amended through the date hereof and
amended and restated as described below, the "Credit Agreement"), among ACE Cash
Express, Inc. ("Borrower"), the several lenders parties thereto, and Wells Fargo
Bank Texas, National Association, as Administrative Agent, which Credit
Agreement as in effect prior to the Transfer Effective Date (as defined below)
will be amended and restated concurrently with this Global Assignment becoming
effective on the Transfer Effective Date to, among other things, exchange
certain existing Revolving Credit Commitments, outstanding Revolving Credit
Loans, existing Seasonal Revolving Credit Commitments, and outstanding Seasonal
Revolving Credit Loans for new Revolving Credit Commitments, Revolving Credit
Loans, Seasonal Revolving Credit Commitments and Seasonal Revolving Credit
Loans. Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

                  The undersigned Lenders, in their respective capacities as
assignors of the percentage or dollar amount of Revolving Credit Commitments and
Seasonal Revolving Credit Commitments, together with the corresponding
percentage of outstanding Revolving Credit Loans and Seasonal Revolving Credit
Loans owned by such assignors (the "Assigned Interests"), reflected by the
reductions in such interests owned by such assignors prior to such assignments
in Schedule 1 (in such capacities, the "Assignors") and the undersigned Lenders
and other financial institutions, in their respective capacities as assignees of
such Assigned Interests as reflected by the increases in such interests owned by
such assignees in Schedule 1 (in such capacities, the "Assignees") agree as
follows:

                  1. In accordance with Section 9.04 of the Credit Agreement,
each Assignor hereby irrevocably sells and assigns to the Assignees, without
recourse to such Assignor, and each of the Assignees hereby irrevocably
purchases and assumes from the Assignors, without recourse to the Assignors, as
of March 31, 2003 (the "Transfer Effective Date"), the portion of the Assigned
Interests owned by such Assignor (and any and all liens and security interests
securing such portion) such that the interests owned by such Assignor and the
Assignees after such transfer and exchange of Revolving Credit Commitments and
Seasonal Revolving Credit Commitments and Revolving Credit Loans and Seasonal
Revolving Credit Loans referred to in the first paragraph hereof are as
reflected in Schedule 1.

                  2. No Assignor (a) makes any representation or warranty or
assumes any responsibility with respect to any statements, warranties or
representations made in or in connection with the Credit Agreement or any other
Credit Document or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Credit Agreement, any other Credit
Document or any other instrument or document furnished pursuant thereto, other
than that it has not created any adverse claim upon the interest being assigned
by it hereunder and that such interest is free and clear of any such adverse
claim; or (b) makes any representation or warranty or assumes any responsibility
with respect to the financial condition of the Borrower or any of its
Subsidiaries or the performance

<PAGE>

or observance by the Borrower or any of its Subsidiaries of any of their
respective obligations under the Credit Agreement, any other Credit Document or
any other instrument or document furnished pursuant hereto or thereto.

                  3. Each Assignee (a) represents and warrants that it is
legally authorized to enter into this Global Assignment and Acceptance; (b)
confirms that, if it is not prior to the Transfer Effective Date a party to the
Credit Agreement, it has received a copy of the Credit Agreement, together with
copies of such financial statements of the Borrower and it Subsidiaries and such
other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Global Assignment and Acceptance
and to become thereby a party to the Credit Agreement; (c) agrees that it will,
independently and without reliance upon any Assignor, the Agent or any other
Lender and based on such financial statements, documents and information as it
shall deem appropriate at the time, make and continue to make its own credit
decisions in taking or not taking action under the Credit Agreement, the other
Credit Documents or any other instrument or document furnished pursuant hereto
or thereto; (d) appoints and authorizes the Agent to take such action as agent
on its behalf and to exercise such powers and discretion under the Credit
Agreement, the other Credit Documents or any other instrument or document
furnished pursuant hereto or thereto as are delegated to the Agent by the terms
thereof, together with such powers as are incidental thereto; and (e) agrees
that it will be bound by the provisions of the Credit Agreement and will perform
in accordance with its terms all the obligations which by the terms of the
Credit Agreement are required to be performed by it as a Lender.

                  4. Following the execution of this Global Assignment and
Acceptance, it will be accepted by the Agent pursuant to Section 9.04 of the
Credit Agreement, and it shall be effective as of the Transfer Effective Date.

                  5. From and after the Transfer Effective Date, the Agent shall
make all payments in respect of the Assigned Interests (including payments of
principal, interest, fees and other amounts) to the Assignees, whether such
amounts have accrued prior to the Transfer Effective Date or accrue subsequent
to the Transfer Effective Date. The Assignors and the Assignees shall make all
appropriate adjustments through the Agent for payments by the Agent for periods
prior to the Transfer Effective Date or with respect to the making of this
assignment.

                  6. From and after the Transfer Effective Date, (a) each of the
Assignees that is not prior to the Transfer Effective Date a party to the Credit
Agreement shall become a party thereto and, to the extent provided in this
Global Assignment and Acceptance, have the rights and obligations of a Lender
thereunder and under the other Credit Documents and shall be bound by the
provisions thereof and (b) each of the Assignors shall, to the extent of its
assignment pursuant to this Global Assignment and Acceptance, relinquish its
rights and be released from its obligations under the Credit Agreement, but
shall nevertheless continue to be entitled to the benefits of the indemnities
provided under the Credit Agreement.

                  7. THIS GLOBAL ASSIGNMENT AND ACCEPTANCE SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS WITHOUT REGARD
TO THE PRINCIPLES OF CONFLICT OF LAWS THEREOF.

                                       2
<PAGE>

                  8. This Global Assignment and Acceptance may be executed by
one or more of the parties to this Global Assignment and Acceptance on any
number of separate counterparts (including by facsimile transmission), and all
of said counterparts taken together shall be deemed to constitute one and the
same instrument.

      [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGES FOLLOW]

                                       3
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this Global
Assignment and Acceptance to be executed as of the dates indicated below by the
signatures of their respective duly authorized officers.

                                            ASSIGNORS:

                                            WELLS FARGO BANK TEXAS,
                                            NATIONAL ASSOCIATION

                                            By:
                                               --------------------------------
                                               Name:
                                               Title:

                                            BANK OF AMERICA, N.A.

                                            By:
                                               --------------------------------
                                               Name:
                                               Title:

                                            JPMORGAN CHASE BANK

                                            By:
                                               --------------------------------
                                               Name:
                                               Title:

                                            WACHOVIA BANK, NATIONAL ASSOCIATION

                                            By:
                                               --------------------------------
                                               Name:
                                               Title:

                                            NATIONAL CITY BANK

                                            By:
                                               --------------------------------
                                               Name:
                                               Title:

<PAGE>

                                            ASSIGNORS:

                                            FIRST AMERICAN BANK, SSB

                                            By:
                                               --------------------------------
                                               Name:
                                               Title:

                                            HIBERNIA NATIONAL BANK

                                            By:
                                               --------------------------------
                                               Name:
                                               Title:

                                            TEXAS CAPITAL BANK, NATIONAL
                                            ASSOCIATION

                                            By:
                                               --------------------------------
                                               Name:
                                               Title:

<PAGE>

                                            ASSIGNEES:

                                            WELLS FARGO BANK TEXAS,
                                            NATIONAL ASSOCIATION

                                            By:
                                               --------------------------------
                                               Name:
                                               Title:

                                            BANK OF AMERICA, N.A.

                                            By:
                                               --------------------------------
                                               Name:
                                               Title:

                                            JPMORGAN CHASE BANK

                                            By:
                                               --------------------------------
                                               Name:
                                               Title:

                                            WACHOVIA BANK, NATIONAL ASSOCIATION

                                            By:
                                               --------------------------------
                                               Name:
                                               Title:

                                            NATIONAL CITY BANK

                                            By:
                                               --------------------------------
                                               Name:
                                               Title:

<PAGE>

                                            ASSIGNEES:

                                            FIRST AMERICAN BANK, SSB

                                            By:
                                               --------------------------------
                                               Name:
                                               Title:

                                            HIBERNIA NATIONAL BANK

                                            By:
                                               --------------------------------
                                               Name:
                                               Title:

                                            TEXAS CAPITAL BANK, NATIONAL
                                            ASSOCIATION

                                            By:
                                               --------------------------------
                                               Name:
                                               Title:

                                            SOUTHWEST BANK OF TEXAS, N.A.

                                            By:
                                               --------------------------------
                                               Name:
                                               Title:

                                            US BANK NATIONAL ASSOCIATION

                                            By:
                                               --------------------------------
                                               Name:
                                               Title:

<PAGE>

                                            CONSENTED TO AND ACCEPTED:

                                            J.P. MORGAN CHASE BANK
                                            as Agent

                                            By:
                                               --------------------------------
                                               Name:
                                               Title:

                                            WELLS FARGO BANK TEXAS,
                                            NATIONAL ASSOCIATION
                                            as Administrative Agent

                                            By:
                                               --------------------------------
                                               Name:
                                               Title:

                                            Consented to:

                                            ACE CASH EXPRESS, INC.

                                            By:
                                               --------------------------------
                                               Name:
                                               Title:

<PAGE>

                                  SCHEDULE 1 TO
                        GLOBAL ASSIGNMENT AND ACCEPTANCE

                                   COMMITMENTS

PRIOR TO ASSIGNMENT AND REALLOCATION OF COMMITMENTS

<Table>
<Caption>
                                                        REVOLVING CREDIT             SEASONAL REVOLVING
          BANK                                             COMMITMENT                 CREDIT COMMITMENT
          ----                                          ----------------              -----------------
<S>                                                     <C>                           <C>

Wells Fargo Bank Texas, N.A.                               32,796,000                      21,065,500

Bank of America, N.A.                                      31,296,000                       9,128,000

JPMorgan Chase Bank                                        20,460,000                      10,967,500

Wachovia Bank, N.A.                                        20,460,000                       5,967,500

National City Bank                                          6,816,000                       1,988,000

Texas Capital Bank, N.A.                                    2,724,000                       4,294,500

Hibernia National Bank                                      2,724,000                         794,500

First American Bank, SSB                                    2,724,000                         794,500
                                                         ------------                     -----------
TOTAL                                                    $120,000,000                     $55,000,000
                                                         ------------                     -----------
</Table>

AFTER ASSIGNMENT AND REALLOCATION OF COMMITMENTS

<Table>
<Caption>
                                                        REVOLVING CREDIT             SEASONAL REVOLVING
          BANK                                             COMMITMENT                 CREDIT COMMITMENT
          ----                                          ----------------              -----------------
<S>                                                     <C>                           <C>

Wells Fargo Bank Texas, National Association             34,285,714.29                    5,714,285.71

JPMorgan Chase Bank                                      23,314,285.71                   10,685,714.29

Bank of America, N.A.                                    17,142,857.14                    7,857,142.86

US Bank National Association                             13,714,285.71                    6,285,714.29

First American Bank SSB                                  10,285,714.29                    4,714,285.71

Southwest Bank of Texas N.A.                              6,857,142.86                    3,142,857.14

Texas Capital Bank National Association                   5,828,571.43                    2,671,428.57

National City Bank                                        5,142,857.14                    2,357,142.86

Wachovia Bank, N.A.                                       3,428,571.43                    1,571,428.57

TOTAL                                                  $120,000,000.00                 $ 45,000,000.00
</Table>

                               Schedule 1 - Page 1
<PAGE>

EXHIBIT F-1

                              [COMPANY LETTERHEAD]

                              ___________ ___, 2003

                            SENIOR CONTROL AGREEMENT

[NAME OF FINANCIAL INSTITUTION]
[                                   ]
 -----------------------------------
[                                   ]
 -----------------------------------
Attn:    [                          ]
          --------------------------

         Re:  Each of the accounts described on the attached Account Schedule
              (collectively, the "ACCOUNTS" and individually, an "ACCOUNT")

Ladies and Gentlemen:

         Reference is made to (i) that certain Intercreditor Agreement dated as
of [___________ ___], 2003, by and among Ace Cash Express, Inc., a Texas
corporation (the "COMPANY"), Wells Fargo Bank Texas, National Association, as
Administrative Agent (the "BANK AGENT") for the lenders (the "LENDERS") from
time to time party to the Bank Agreement (as such term is defined in the
Intercreditor Agreement), American Capital Financial Services, Inc., as Agent
("ACFS AGENT") for the purchasers ("PURCHASERS") from time to time party to the
ACFS Note Agreement (as such term is defined in the Intercreditor Agreement),
and Travelers Express Company, Inc. ("TRAVELERS")(as such Intercreditor
Agreement may be amended, restated, supplemented or otherwise modified from time
to time, the "INTERCREDITOR AGREEMENT") and (ii) that certain Assignment of
Deposit Accounts and Security Agreement dated as of [___________ ___], 2003, by
the Company in favor of the Bank Agent for the benefit of the Lenders (as such
Assignment of Deposit Accounts and Security Agreement may be amended, restated,
supplemented or otherwise modified from time to time, the "SECURITY AGREEMENT").

         Pursuant to the Security Agreement, the Company has granted control of
the Accounts to the Bank Agent and granted to the Bank Agent a first priority
security interest in the Accounts and the Company's monies, funds, checks,
negotiable instruments and any other items or property deposited and/or held in
the Accounts from time to time and all proceeds thereof (all of the foregoing
hereinafter collectively referred to as the "ACCOUNT PROPERTY"), in each case,
to secure certain obligations and indebtedness of the Company owing to the Bank
Agent and the Lenders described therein. The Company hereby notifies you, and
you hereby acknowledge, that the Company has granted a security interest to the
Bank Agent in, and control of, the Accounts and the other Account Property.

<PAGE>

[NAME OF FINANCIAL INSTITUTION]
Page 2

         WITH RESPECT TO ANY AND ALL INSTRUCTIONS YOU MAY RECEIVE FROM THE BANK
AGENT, THIS LETTER AGREEMENT, EFFECTIVE AS OF THE EFFECTIVE TIME (AS HEREINAFTER
DEFINED), SUPERSEDES ALL PRIOR LETTERS OF INSTRUCTION IN RESPECT OF THE ACCOUNTS
AND THE OTHER ACCOUNT PROPERTY TO WHICH YOU ARE A PARTY OR WHICH HAVE BEEN
DELIVERED TO YOU BY THE COMPANY ("PRIOR LETTERS").

         This letter shall become effective as of 12:01 a.m., Dallas, Texas time
(the "EFFECTIVE TIME"), on the date first written above upon execution of this
letter by each party hereto and delivery of the same to you.

         The Company hereby agrees with the Bank Agent, and you hereby
acknowledge, that the Company has no power to withdraw from the Accounts except
as expressly permitted hereunder and that the Bank Agent may, at any time by
written notice to you, terminate or suspend any and all rights of the Company
related to the Accounts.

         The Company hereby irrevocably and unconditionally authorizes,
instructs and directs you to comply, and you hereby agree to comply, with all
instructions originated by the Bank Agent with respect to the Accounts or
directing disposition of any or all monies, funds, checks, negotiable
instruments or any other items or properties in the Accounts, in each case
without joinder or further consent by the Company and as promptly after receipt
thereof as is reasonably possible so long as each such instruction is
accompanied by a written certification from Bank Agent stating that Bank Agent
is authorized to originate such instruction under, and in accordance with, the
Intercreditor Agreement; provided, however, that in the event of any insolvency,
bankruptcy, liquidation, reorganization or other similar proceedings or any
receivership proceedings in connection therewith, relative to the Company, the
Company hereby irrevocably and unconditionally authorizes, instructs and directs
you to comply, and you hereby agree to comply, with all instructions originated
by the Bank Agent with respect to the Accounts or directing disposition of any
or all monies, funds, checks, negotiable instruments or any other items or
properties in the Accounts, so long as each such instruction is accompanied by a
written certification from Bank Agent stating that a court of competent
jurisdiction has authorized Bank Agent to originate such instruction and having
attached thereto a copy of an order of such court granting to Bank Agent such
authority, in each case without joinder or further consent by the Company and as
promptly after receipt thereof as is reasonably possible. You are entitled to
rely upon and are authorized and directed to follow all instructions of the Bank
Agent and you have no duty of inquiry as to the authorization or authenticity of
any such instructions so long as they are given by an individual designated by
the Bank Agent and accompanied by either of the foregoing described
certifications.

         Notwithstanding the foregoing two paragraphs, until you receive notice
from the Bank Agent as set forth above, the Company shall be permitted to make
withdrawals from the Accounts from time to time subject to the conditions set
forth in this paragraph. The Bank Agent and the Company hereby inform you that
the Company will be making

<PAGE>

[NAME OF FINANCIAL INSTITUTION]
Page 3

daily requests of the Monitoring Agent to permit the Company to use funds in the
Currency Account for the Company's operations. As used herein, the term
"MONITORING AGENT" shall mean the Bank Agent until such time as the Bank Agent,
the Company and the Bank Agent notify you in writing that a different party is
the Monitoring Agent. Subject to obtaining prior approval from the Monitoring
Agent as to the dollar amount of any day's release of funds, and unless the Bank
Agent shall notify you in writing to the contrary, you shall be entitled to
follow the instructions provided to you by the Company to release funds from the
Currency Account daily to the Company for its use, so long as such funds are
designated for delivery to the Custodial Agent (as defined below) or transferred
as permitted herein. You shall have no obligation or liability hereunder to the
Company or the Bank Agent if you follow such instructions so long as the Bank
Agent has not terminated, by notice to you, the authority of the Company granted
by this paragraph. Any such notice of termination shall be effective only as to
transfers to be effected following your actual receipt of such notice, and in
any event, shall be effective (a) if received before noon on any banking day, as
to deliveries or transfers after the close of the banking day of receipt of such
notice, or (b) if received at or after noon on any banking day, as to deliveries
or transfers after the close of the next succeeding banking day after the
banking day of receipt of such notice. Approvals, notices or instructions given
with respect to this paragraph and the two preceding paragraphs of this letter
agreement shall be given by facsimile at the numbers set forth below, except
that as to any funds deposited into the Currency Account by wire transfer from
the Monitoring Agent, such deposit shall constitute the deemed authorization or
prior approval by the Bank Agent for the Company to use and withdraw the dollar
amount of such funds as permitted by the provisions of this letter agreement,
unless the Bank Agent shall notify you in writing to the contrary.

         The Company and the Bank Agent irrevocably approve of the use of wire
transfers, depository transfer checks or automatic clearinghouse electronic
transfers, at the Monitoring Agent's option, for the above-mentioned purposes.
The use of any such wire transfers, checks or electronic transfers are intended
to affirm the right and the interest of the Bank Agent in the Accounts and all
funds and items credited to or deposited therein and not to derogate therefrom.

         Your regular monthly maintenance fees, activity fees and service
charges in connection with the Accounts, items returned or charged back to the
Accounts, and the amount of any daylight overdraft by the Company incurred
solely by reason of the transfer of funds to the Monitoring Agent each banking
day as provided above (the "OVERDRAFT AMOUNT"), in each case to the extent
chargeable under the terms of the account agreement(s) governing the Accounts,
but no other fees or charges, may be deducted from the daily deposits to the
Accounts. You are hereby directed to bill to the Company directly all other
costs, expenses and other charges associated with the Accounts, and the Company
shall pay directly to you all such costs, expenses and other charges; you agree
not to set off any such other costs, expenses or other charges against the
Accounts or the Account Property. Further, you agree not to charge back any
items deposited in or credited to the Accounts, provisional or otherwise, except
as against the Returned Items Account (as such term is defined in the Account
Schedule attached

<PAGE>

[NAME OF FINANCIAL INSTITUTION]
Page 4

hereto). The Bank Agent agrees to reimburse you, but solely from the funds of
the trust property, for the amount of items charged back or returned to any
Account or for any Overdraft Amount to the extent that (a) you have credited an
Account for such amount, (b) the Bank Agent has withdrawn such funds from an
Account, (c) sufficient funds are not available for withdrawal by you from an
Account, and (d) payment of such amount has not been received by you from the
Company within ten (10) days (in the case of items charged back or returned to
an Account) or one (1) banking day (in the case of an Overdraft Amount)
following your request to the Company therefor. Such reimbursement shall be made
within ten (10) days (in the case of items charged back or returned to an
Account) or one (1) banking day (in the case of an Overdraft Amount) following
the Bank Agent's receipt of your written request therefor. Excepting only the
limited rights provided above in this paragraph, you hereby waive and release
any and all rights of offset, claims or counterclaims against, and any and all
security interests, banker's liens or similar rights in or to, the Accounts or
the Account Property (whether arising under law, agreement or otherwise).

         You agree to indicate by appropriate entry in your records with respect
to the Accounts or the Account Property the security interest of the Bank Agent
therein.

         This notification and the directions and instructions contained herein
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.

         You agree to deliver copies of all correspondence, notices, bank
statements and other information which you are otherwise obligated or permitted
to send to the Company (by law, agreement or otherwise) to the Bank Agent at the
address specified herein. You are further authorized, and the Company hereby
consents, to deliver any information requested by the Bank Agent related to the
Accounts, with any reasonable expense therefor to be paid by the Company. Any
reasonable additional charge for providing such information shall be billed to
the Company, with a copy to the Bank Agent; if such charge is not paid by the
Company within ten (10) days after its receipt of such invoice, you may set off
such charge against any of the Accounts or the Account Property; if such charge
cannot be paid by set off against the Account or the Account Property, then
unless the Bank Agent agrees to pay such charge, your obligation to provide such
information shall cease. All other notices, communications and information to be
delivered to the Bank Agent shall be delivered to the Bank Agent as set forth in
the first sentence of this paragraph. Such address and the name or names of the
individual or individuals who are entitled to receive notices and copies of
statements sent to the Bank Agent may be changed by written notice from the Bank
Agent. Requests, consents or notices from the Bank Agent with respect to the
Accounts or Account Property will be effective only if obtained in writing from
an individual designated by the Bank Agent for purposes thereof from time to
time. The Bank Agent and the Company acknowledge and agree that you shall not be
bound by any change in address or designation of any responsible party prior to
your actual receipt of written notice thereof.

<PAGE>

[NAME OF FINANCIAL INSTITUTION]
Page 5

         You hereby waive and release any and all rights of offset, claims or
counterclaims against, and any and all security interests, banker's liens or
similar rights in or to, the Accounts or the Account Property (whether arising
under law, agreement or otherwise) other than the security interests in the
Accounts and the Account Property and your interests therein (if any) which have
been granted to Bank Agent.

         These instructions may only be modified in writing by an agreement
executed by you, the Company, the Bank Agent, and the Monitoring Agent;
provided, however, that the attached Account Schedule may be amended by delivery
of a revised schedule from the Company, the Bank Agent, and the Monitoring Agent
to you. All notices, approvals, or instructions hereunder shall be sent to the
following addressee:

         If to the Company:
                  Ace Cash Express, Inc.
                  1231 Greenway Dr., Ste. 800
                  Irving, Texas 75038
                  Attention:  Jay B. Shipowitz
                  Telephone No.:  972 550 5030
                  Facsimile No.:  972 582 1430

         If to the Bank Agent:
                  Wells Fargo Bank Texas, National Association
                  4975 Preston Park Road, Suite 280
                  Plano, Texas 75093
                  Attention:  Michael B. Sullivan
                  Telephone No.:  214 740-1595
                  Facsimile No.:  214 969-0906

         If to the Monitoring Agent:
                  Wells Fargo Bank Texas, National Association
                  4975 Preston Park Road, Suite 280
                  Plano, Texas 75093
                  Attention:  Michael B. Sullivan
                  Telephone No.:  214 740-1595
                  Facsimile No.:  214 969-0906

         If to you: As indicated on the attached Account Schedule

         All notices or other communications provided for hereunder shall be in
writing (including by facsimile transmission) and shall be deemed to have been
duly given or made (i) in the case of delivery by hand, when delivered, (ii) in
the case of delivery by mail, three business days (meaning a day other than
Saturday, Sunday or a day on which commercial banks in [CITY, STATE] are
authorized to close) after being deposited in the mails, postage prepaid, or
(iii) in the case of delivery by facsimile transmission, when delivered or
transmitted by facsimile machine, provided that any matter transmitted by
facsimile (a) shall be immediately confirmed by a

<PAGE>

[NAME OF FINANCIAL INSTITUTION]
Page 6

telephone call to the recipient at the number specified herein and (b) shall be
followed promptly by a hard copy original thereof.

         Notwithstanding anything to the contrary in this letter agreement: (i)
you shall have only the duties and responsibilities with respect to the matters
set forth herein as is expressly set forth in writing herein and shall not be
deemed to be an agent, bailee or fiduciary for any party hereto; (ii) you shall
be fully protected in acting or refraining from acting in good faith without
investigation on any notice, instruction or request purportedly furnished to you
by the Company or Bank Agent in accordance with the terms hereof, in which case
the parties hereto agree that you have no duty to make any further inquiry
whatsoever; (iii) it is hereby acknowledged and agreed that you have no
knowledge of (and are not required to know) the terms and provisions of the
Intercreditor Agreement, the Security Agreement, or any other related
documentation or whether any actions by Bank Agent, the Company or any other
person or entity are permitted thereunder or consistent or inconsistent
therewith; (iv) you shall not be liable to any party hereto or any other person
for any action or failure to act under or in connection with this letter
agreement except to the extent such conduct constitutes your own willful
misconduct or gross negligence (and to the maximum extent permitted by law, you
shall under no circumstances be liable for any incidental, indirect, special,
consequential or punitive damages); and (v) you shall not be liable for losses
or delays caused by force majeure, interruption or malfunction of computer,
transmission or communications facilities, labor difficulties, court order or
decree, the commencement of bankruptcy or other similar proceedings or other
matters beyond your reasonable control.

         The Company hereby agrees to indemnify, defend and save you harmless
against any loss, liability or expense (including reasonable fees and
disbursements of counsel who may be your employee) incurred in connection with
this letter agreement or the Accounts (except to the extent due to your willful
misconduct or gross negligence) or any interpleader proceeding relating thereto
or incurred at the Company's direction or instruction. Bank Agent hereby agrees
to indemnify, defend and save you harmless against any loss, liability or
expense (including reasonable fees and disbursements of counsel who may be your
employee) incurred in connection with any actions taken by you under this letter
agreement with respect to the Accounts (except to the extent due to your
willful misconduct or gross negligence). Bank Agent's and the Company's
responsibilities shall survive the termination hereof.

         You hereby agree that (i) you are a "bank" within the meaning of
Section 9.102 of the Uniform Commercial Code as in effect in the State of Texas
(the "UCC"), (ii) each Account constitutes a "deposit account" within the
meaning of Section 9.102 of the UCC, (iii) this letter agreement shall
constitute an "authenticated record" for purposes of the UCC, and (iv) other
than the Prior Letters, you have not entered into any agreement that grants to
or confers upon any other party control of any Account or any of the Account
Property and you will not enter into any such agreement during the term of this
letter agreement, other than such agreements regarding control of the Accounts
and the other Account Property that you may enter into after the Effective Time
with ACFS Agent or Travelers; provided, however, that you and the Company hereby
further agree that the interests of each of ACFS Agent and Travelers in the
Accounts and the other Account Property are and shall at all times be subject to
and subordinate to the interests of the Bank Agent therein, in each case to the
extent and in the manner provided in the Intercreditor Agreement.

         Each of you and the Company hereby agrees that this letter agreement
grants to and confers upon the Bank Agent "control" of each Account as
contemplated in Section 9.104 (and similar related provisions) of the UCC, and
the security interest in the Accounts and the other Account Property in favor of
the Bank Agent is and shall at all times be senior and superior in

<PAGE>

[NAME OF FINANCIAL INSTITUTION]
Page 7

right of priority to any security interest in any Account or any other Account
Property which may have been, or hereafter be, granted to any of ACFS Agent or
Travelers.

         The Company and you hereby agree that no Account (i) is evidenced by an
instrument (as that term is defined in the UCC) or (ii) constitutes a securities
account or contains securities or investment property (as such terms are defined
in the UCC).

         You hereby agree to comply with the restrictions, authorizations and
instructions set forth or described above in this letter agreement. Further, the
Company hereby agrees and you also acknowledge and agree that (a) each "deposit
account" (as such term is defined in the UCC) maintained by you in the name of,
or for the benefit of, the Company and identified on the attached Account
Schedule (as amended as permitted hereunder) shall be deemed to be an Account
and shall be subject to this letter agreement in all respects, (b) the Company
has a right of withdrawal over the Returned Items Account and the Depository
Account (as such term is defined in the Account Schedule attached hereto) only
by deposit to the Currency Account and the Company has the right to transfer
from the Currency Account to the Returned Items Account to cover overdrafts in
the Returned Items Account, (c) the Company has a right of withdrawal over the
Currency Account only by transfer to the Bank Agent to Account #____________ at
Wells Fargo Bank, National Association (the "CENTRAL DISBURSING ACCOUNT"), (d)
the Company has a right on a daily basis to transfer up to $2,500 from the
Currency Account to the Operating Account (as such term is defined in the
Account Schedule attached hereto) (provided the balance in the Operating Account
does not exceed [$5,000]), (e) the Company has a right on a weekly basis to
transfer up to [$15,000] from the Currency Account to the Operating Account to
replenish postage stamp inventory in the Company's stores [NOTE: COMPANY TO
EXPLAIN INCONSISTENCY BETWEEN (d) AND (e).] and (f) the Company has a right to
instruct you to convert funds deposited in the Currency Account to currency and
deliver the same to the custodial agent indicated on the attached Account
Schedule ("CUSTODIAL AGENT") pursuant to the agreements between Custodial Agent
and the Company, as the same may be amended, modified, or substituted, with
written approval of the Bank Agent if required, or such other armored service
company as the Bank Agent may designate in writing.

         Nothing in this letter agreement shall require you to act in violation
of any applicable laws or any court order.

         This letter agreement supplements, rather than replaces, your deposit
account agreement, terms and conditions and other standard documentation in
effect from time to time with respect to the Accounts or services provided in
connection with the Accounts (the "ACCOUNT DOCUMENTATION"), which Account
Documentation will continue to apply to the Accounts and such services, and the
respective rights, powers, duties, obligations, liabilities and responsibilities
of the parties thereto and hereto, to the extent not expressly conflicting with
the provisions of this letter (however, in the event of any such conflict, the
provisions of this letter agreement shall control).

         This letter agreement shall be governed in accordance with the laws of
the State of Texas. The State of Texas shall be deemed to be your location for
purposes of Section 9.304(b) of the UCC.

<PAGE>

[NAME OF FINANCIAL INSTITUTION]
Page 8

      [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

<PAGE>

[NAME OF FINANCIAL INSTITUTION]
Page 9

         If the foregoing accurately sets forth our agreements with respect to
the subject matter hereof, please sign below as indicated and return a signed
copy thereof to the Bank Agent or its legal counsel at such address as the Bank
Agent shall provide. This letter agreement may be executed in multiple
counterparts.

         Thank you.

                                       ACE CASH EXPRESS, INC.

                                       By:
                                          -------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

Approved as of the date first above written:

WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION, as Bank Agent

By:
   ---------------------------------------------
Name:
     -------------------------------------------
Title:
      ------------------------------------------

WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION, as Monitoring Agent

By:
   ---------------------------------------------
Name:
     -------------------------------------------
Title:
      ------------------------------------------

Accepted and agreed to as of the date first above written:

[NAME OF FINANCIAL INSTITUTION]

By:
   ---------------------------------------------
Name:
     -------------------------------------------
Title:
      ------------------------------------------

<PAGE>

[NAME OF FINANCIAL INSTITUTION]
Page 10

               ACCOUNT SCHEDULE - [NAME OF FINANCIAL INSTITUTION]
                               [DATE OF SCHEDULE]

<Table>
<Caption>
                        Account                Account               Custodial
   State                 Number                  Type                  Agent
   -----                -------                -------               ---------
<S>                     <C>                    <C>                   <C>

*BANK CONTACT FOR THE FOLLOWING IS [NAME OF CONTACT], FACSIMILE NUMBER [_________]

                                                 (1)
                                                 (2)
                                                 (3)
                                                 (4)

                                                 (1)
                                                 (2)
                                                 (3)
                                                 (4)
</Table>

(1)      Currency Account (the "CURRENCY ACCOUNT")

(2)      Depository Account (the "DEPOSITORY ACCOUNT")

(3)      Operating Account (the "OPERATING ACCOUNT")

(4)      Returned Items Account (the "RETURNED ITEMS ACCOUNT")

and each other "deposit account" (as such term is defined in the UCC) maintained
by [NAME OF FINANCIAL INSTITUTION] from time to time in the name of, or for the
benefit of, the Company, and identified on a supplemental schedule

<PAGE>

EXHIBIT F-2

                              [COMPANY LETTERHEAD]

                              ___________ ___, 2003

                            SENIOR CONTROL AGREEMENT

[NAME OF FINANCIAL INSTITUTION]
[                                   ]
 ------------------------------------
[                                   ]
 ------------------------------------
Attn:    [                          ]
          ---------------------------

         Re:   Each of the accounts described on the attached Account Schedule
               (collectively, the "ACCOUNTS" and individually, an "ACCOUNT")

Ladies and Gentlemen:

         Reference is made to (i) that certain Intercreditor Agreement dated as
of [___________ ___], 2003, by and among Ace Cash Express, Inc., a Texas
corporation (the "COMPANY"), Wells Fargo Bank Texas, National Association, as
Administrative Agent (the "BANK AGENT") for the lenders (the "LENDERS") from
time to time party to the Bank Agreement (as such term is defined in the
Intercreditor Agreement), American Capital Financial Services, Inc., as Agent
("ACFS AGENT") for the purchasers ("PURCHASERS") from time to time party to the
ACFS Note Agreement (as such term is defined in the Intercreditor Agreement),
and Travelers Express Company, Inc. ("TRAVELERS")(as such Intercreditor
Agreement may be amended, restated, supplemented or otherwise modified from time
to time, the "INTERCREDITOR AGREEMENT") and (ii) that certain Assignment of
Deposit Accounts and Security Agreement dated as of [___________ ___], 2003, by
the Company in favor of the Bank Agent for the benefit of the Lenders (as such
Assignment of Deposit Accounts and Security Agreement may be amended, restated,
supplemented or otherwise modified from time to time, the "SECURITY AGREEMENT").

         Pursuant to the Security Agreement, the Company has granted control of
the Accounts to the Bank Agent and granted to the Bank Agent a first priority
security interest in the Accounts and the Company's monies, funds, checks,
negotiable instruments and any other items or property deposited and/or held in
the Accounts from time to time and all proceeds thereof (all of the foregoing
hereinafter collectively referred to as the "ACCOUNT PROPERTY"), in each case,
to secure certain obligations and indebtedness of the Company owing to the Bank
Agent and the Lenders described therein. The Company hereby notifies you, and
you hereby acknowledge, that the Company has granted a security interest to the
Bank Agent in, and control of, the Accounts and the other Account Property.

<PAGE>

[NAME OF FINANCIAL INSTITUTION]
Page 2

          WITH RESPECT TO ANY AND ALL INSTRUCTIONS YOU MAY RECEIVE FROM THE BANK
AGENT, THIS LETTER AGREEMENT, EFFECTIVE AS OF THE EFFECTIVE TIME (AS HEREINAFTER
DEFINED), SUPERSEDES ALL PRIOR LETTERS OF INSTRUCTION IN RESPECT OF THE ACCOUNTS
AND THE OTHER ACCOUNT PROPERTY TO WHICH YOU ARE A PARTY OR WHICH HAVE BEEN
DELIVERED TO YOU BY THE COMPANY ("PRIOR LETTERS").

         This letter shall become effective as of 12:01 a.m., Dallas, Texas time
(the "EFFECTIVE TIME"), on the date first written above upon execution of this
letter by each party hereto and delivery of the same to you.

         The Company hereby agrees with the Bank Agent, and you hereby
acknowledge, that the Company has no power to withdraw from the Accounts except
as expressly permitted hereunder and that the Bank Agent may, at any time by
written notice to you, terminate or suspend any and all rights of the Company
related to the Accounts.

         The Company hereby irrevocably and unconditionally authorizes,
instructs and directs you to comply, and you hereby agree to comply, with all
instructions originated by the Bank Agent with respect to the Accounts or
directing disposition of any or all monies, funds, checks, negotiable
instruments or any other items or properties in the Accounts, in each case
without joinder or further consent by the Company and as promptly after receipt
thereof as is reasonably possible so long as each such instruction is
accompanied by a written certification from Bank Agent stating that Bank Agent
is authorized to originate such instruction under, and in accordance with, the
Intercreditor Agreement; provided, however, that in the event of any insolvency,
bankruptcy, liquidation, reorganization or other similar proceedings or any
receivership proceedings in connection therewith, relative to the Company, the
Company hereby irrevocably and unconditionally authorizes, instructs and directs
you to comply, and you hereby agree to comply, with all instructions originated
by the Bank Agent with respect to the Accounts or directing disposition of any
or all monies, funds, checks, negotiable instruments or any other items or
properties in the Accounts, so long as each such instruction is accompanied by a
written certification from Bank Agent stating that a court of competent
jurisdiction has authorized Bank Agent to originate such instruction and having
attached thereto a copy of an order of such court granting to Bank Agent such
authority, in each case without joinder or further consent by the Company and as
promptly after receipt thereof as is reasonably possible. You are entitled to
rely upon and are authorized and directed to follow all instructions of the Bank
Agent and you have no duty of inquiry as to the authorization or authenticity of
any such instructions so long as they are given by an individual designated by
the Bank Agent and accompanied by either of the foregoing described
certifications.

         Notwithstanding the foregoing two paragraphs, until you receive notice
from the Bank Agent as set forth above, the Company shall be permitted to make
withdrawals from the Accounts from time to time subject to the conditions set
forth in this paragraph. All Accounts shall automatically sweep to the Currency
Account (as such term is defined in the

<PAGE>

[NAME OF FINANCIAL INSTITUTION]
Page 3

Account Schedule attached hereto) on a daily basis. The Company is authorized to
make daily transfers from the Currency Account to Account # 4588542456 at Wells
Fargo Bank, National Association (the "CENTRAL DISBURSING ACCOUNT") (adjusted
for cash required by the Company in the ordinary course of operation of its
local stores and funding the Returned Items Account (as such term is defined in
the Account Schedule attached hereto) serviced by you (the "LOCAL CASH NEEDS"),
which shall be deducted from the Currency Account and delivered only to the
applicable armored courier indicated on the attached Account Schedule (the
"CUSTODIAL AGENT")). Under no circumstances shall the Company have the authority
to authorize any transfer from the Accounts except as set forth in the preceding
sentence. In the event you receive written instructions originated by the Bank
Agent in accordance with the immediately preceding paragraph, you (a) are
authorized and directed to immediately transfer to the account designated by the
Bank Agent in such instructions all collected sums credited to or otherwise
deposited in the Accounts and all proceeds thereof and earnings thereon and (b)
hereby agree to immediately terminate all transfers directed by the Company and
at all times thereafter comply with the instructions originated by the Bank
Agent with respect to all subsequent transfers of Account Property from the
Accounts, without joinder or further consent by the Company. The Company, the
Bank Agent and you hereby agree that upon delivery of such written instructions,
(i) the Bank Agent shall have exclusive control over all subsequent transfers
from the Accounts, and the Company and you acknowledge that the Company shall
thereafter have no right to direct any such transfers, (ii) all services to be
performed by you in connection with the Accounts will be performed on behalf of
the Bank Agent, (iii) the Bank Agent will have all rights and remedies given the
Company in any agreement between you and the Company relating to the Accounts,
(iv) upon the request of the Bank Agent (without the Company's consent or
agreement), the Accounts will be transferred to and maintained in the name of
the Bank Agent and (v) the Company shall, notwithstanding the foregoing,
continue to pay all charges for your services rendered and any other charges,
costs or fees incurred by you or the Bank Agent in connection with this letter
agreement.

         You agree to indicate by appropriate entry in your records with respect
to the Accounts or the Account Property the security interest of the Bank Agent
therein.

         You agree to deliver copies of all bank statements which you send to
the Company (by law, agreement or otherwise) to the Bank Agent at the address
specified herein. You are further authorized, and the Company hereby consents,
to deliver any information requested by the Bank Agent related to the Accounts,
with any reasonable expense therefor to be paid by the Company.

         You hereby waive and release any and all rights of offset, claims or
counterclaims against, and any and all security interests, banker's liens or
similar rights in or to, the Accounts or the Account Property (whether arising
under law, agreement or otherwise) other than the security interests in the
Accounts and the Account Property and your interests therein (if any) which have
been granted to Bank Agent.

         These instructions may only be modified in writing by an agreement
executed by you, the Company and the Bank Agent; provided, however that the
attached Account Schedule

<PAGE>

[NAME OF FINANCIAL INSTITUTION]
Page 4

may be amended by delivery of a revised schedule from the Company and the Bank
Agent to you. All notices hereunder shall be sent to the following addressee:

         If to the Company:
                  Ace Cash Express, Inc.
                  1231 Greenway Dr., Ste. 800
                  Irving, Texas 75038
                  Attention:  Jay B. Shipowitz
                  Telephone No.:  972 550 5030
                  Facsimile No.:  972 582 1430

         If to the Bank Agent:
                  Wells Fargo Bank Texas, National Association
                  4975 Preston Park Road, Suite 280
                  Plano, Texas 75093
                  Attention:    Michael B. Sullivan
                  Telephone No.:  214 740-1595
                  Facsimile No.:  214 _________

         If to you:
                  [NAME OF FINANCIAL INSTITUTION]
                  [                        ]
                   ------------------------
                  [                        ]
                   ------------------------
                  Attention: [             ]
                              -------------
                  Telephone No.: [         ]
                                  ---------
                  Facsimile No.: [         ]
                                  ---------

         All notices or other communications provided for hereunder shall be in
writing (including by facsimile transmission) and shall be deemed to have been
duly given or made (i) in the case of delivery by hand, when delivered, (ii) in
the case of delivery by mail, three business days (meaning a day other than
Saturday, Sunday or a day on which commercial banks in [CITY, STATE] are
authorized to close) after being deposited in the mails, postage prepaid, or
(iii) in the case of delivery by facsimile transmission, when delivered or
transmitted by facsimile machine, provided that any matter transmitted by
facsimile (a) shall be immediately confirmed by a telephone call to the
recipient at the number specified herein and (b) shall be followed promptly by a
hard copy original thereof.

         Notwithstanding anything to the contrary in this letter agreement: (i)
you shall have only the duties and responsibilities with respect to the matters
set forth herein as is expressly set forth in writing herein and shall not be
deemed to be an agent, bailee or fiduciary for any party hereto; (ii) you shall
be fully protected in acting or refraining from acting in good faith without
investigation on any notice, instruction or request purportedly furnished to you
by the Company or Bank Agent in accordance with the terms hereof, in which case
the parties hereto agree that you have no duty to make any further inquiry
whatsoever; (iii) it is hereby acknowledged and agreed that you have no
knowledge of (and are not required to know) the terms and provisions of the
Intercreditor Agreement, the Security Agreement, or any other related
documentation or whether any actions

<PAGE>

[NAME OF FINANCIAL INSTITUTION]
Page 5

by Bank Agent, the Company or any other person or entity are permitted
thereunder or consistent or inconsistent therewith; (iv) you shall not be liable
to any party hereto or any other person for any action or failure to act under
or in connection with this letter agreement except to the extent such conduct
constitutes your own willful misconduct or gross negligence (and to the maximum
extent permitted by law, you shall under no circumstances be liable for any
incidental, indirect, special, consequential or punitive damages); and (v) you
shall not be liable for losses or delays caused by force majeure, interruption
or malfunction of computer, transmission or communications facilities, labor
difficulties, court order or decree, the commencement of bankruptcy or other
similar proceedings or other matters beyond your reasonable control.

         The Company hereby agrees to indemnify, defend and save you harmless
against any loss, liability or expense (including reasonable fees and
disbursements of counsel who may be your employee) incurred in connection with
this letter agreement or the Accounts (except to the extent due to your willful
misconduct or gross negligence) or any interpleader proceeding relating thereto
or incurred at the Company's direction or instruction. Bank Agent hereby agrees
to indemnify, defend and save you harmless against any loss, liability or
expense (including reasonable fees and disbursements of counsel who may be your
employee) incurred in connection with any actions taken by you under this letter
agreement with respect to the Accounts (except to the extent due to your willful
misconduct or gross negligence). Bank Agent's and the Company's responsibilities
shall survive the termination hereof.

         You hereby agree that (i) you are a "bank" within the meaning of
Section 9.102 of the Uniform Commercial Code as in effect in the State of Texas
(the "UCC"), (ii) each Account constitutes a "deposit account" within the
meaning of Section 9.102 of the UCC, (iii) this letter agreement shall
constitute an "authenticated record" for purposes of the UCC, and (iv) other
than the Prior Letters, you have not entered into any agreement that grants to
or confers upon any other party control of any Account or any of the Account
Property and you will not enter into any such agreement during the term of this
letter agreement, other than such agreements regarding control of the Accounts
and the other Account Property that you may enter into after the Effective Time
with ACFS Agent or Travelers; provided, however, that you and the Company hereby
further agree that the interests of each of ACFS Agent and Travelers in the
Accounts and the other Account Property are and shall at all times be subject to
and subordinate to the interests of the Bank Agent therein, in each case, to the
extent and in the manner provided in the Intercreditor Agreement.

         Each of you and the Company hereby agrees that this letter agreement
grants to and confers upon the Bank Agent "control" of each Account as
contemplated in Section 9.104 (and similar related provisions) of the UCC, and
the security interest in the Accounts and the other Account Property in favor of
the Bank Agent is and shall at all times be senior and superior in right of
priority to any security interest in any Account or any other Account Property
which may have been, or hereafter be, granted to any of ACFS Agent or Travelers.

         The Company and you hereby agree that no Account (i) is evidenced by an
instrument (as that term is defined in the UCC) or (ii) constitutes a securities
account or contains securities or investment property (as such terms are defined
in the UCC).

<PAGE>

[NAME OF FINANCIAL INSTITUTION]
Page 6

         You hereby agree to comply with the restrictions, authorizations and
instructions set forth or described above in this letter agreement. Further, the
Company hereby agrees and you also acknowledge and agree that (a) each "deposit
account" (as such term is defined in the UCC) maintained by you in the name of,
or for the benefit of, the Company and identified on the attached Account
Schedule (as amended as permitted hereunder) shall be deemed to be an Account
and shall be subject to this letter agreement in all respects, (b) the Company
has a right of withdrawal over the Returned Items Account and the Depository
Account (as such term is defined in the Account Schedule attached hereto) only
by deposit to the Currency Account and the Company has the right to transfer
from the Currency Account to the Returned Items Account to cover overdrafts in
the Returned Items Account, and (c) the Company has a right of withdrawal over
the Currency Account only by transfer to the Central Disbursing Account, net of
Local Cash Needs, delivered to the Custodial Agent pursuant to the agreements
between Custodial Agent and the Company, as the same may be amended, modified,
or substituted, with written approval of the Bank Agent if required, or such
other armored service company as the Bank Agent may designate in writing.

         Nothing in this letter agreement shall require you to act in violation
of any applicable laws or any court order.

         This letter agreement supplements, rather than replaces, your deposit
account agreement, terms and conditions and other standard documentation in
effect from time to time with respect to the Accounts or services provided in
connection with the Accounts (the "ACCOUNT DOCUMENTATION"), which Account
Documentation will continue to apply to the Accounts and such services, and the
respective rights, powers, duties, obligations, liabilities and responsibilities
of the parties thereto and hereto, to the extent not expressly conflicting with
the provisions of this letter (however, in the event of any such conflict, the
provisions of this letter agreement shall control).

         This letter agreement shall be governed in accordance with the laws of
the State of Texas. The State of Texas shall be deemed to be your location for
purposes of Section 9.304(b) of the UCC.

      [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

<PAGE>

[NAME OF FINANCIAL INSTITUTION]
Page 7

         If the foregoing accurately sets forth our agreements with respect to
the subject matter hereof, please sign below as indicated and return a signed
copy thereof to the Bank Agent or its legal counsel at such address as the Bank
Agent shall provide. This letter agreement may be executed in multiple
counterparts.

         Thank you.
                                              ACE CASH EXPRESS, INC.

                                              By:
                                                 ----------------------------
                                              Name:
                                                   --------------------------
                                              Title:
                                                    -------------------------

Approved as of the date first above written:

WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION, as Bank Agent

By:
   --------------------------------------
Name:
     ------------------------------------
Title:
      -----------------------------------

Accepted and agreed to as of the date first above written:

[NAME OF FINANCIAL INSTITUTION]

By:
   --------------------------------------
Name:
     ------------------------------------
Title:
      -----------------------------------

<PAGE>

[NAME OF FINANCIAL INSTITUTION]
Page 8

                    Account Schedule - [NAME OF INSTITUTION]

                               [DATE OF SCHEDULE]

<Table>
<Caption>
State           Account Number          Account Type             Custodial Agent
-----           --------------          ------------             ---------------
                                       [(1)/(2)/(3)]
<S>             <C>                    <C>                       <C>

</Table>

(1)      Currency Account (the "CURRENCY ACCOUNT")

(2)      Depository Account (the "DEPOSITORY ACCOUNT")

(3)      Returned Items Account (the "RETURNED ITEMS ACCOUNT")

and each other "deposit account" (as such term is defined in the UCC) maintained
by [NAME OF FINANCIAL INSTITUTION] from time to time in the name of, or for the
benefit of, the Company and identified on a supplemental schedule

<PAGE>

EXHIBIT G

                              [COMPANY LETTERHEAD]

                                               , 2003
                              ------------ ----

[NAME OF ARMORED COURIER]
[                          ]
 --------------------------
[                          ]
 --------------------------
Attn:    [                 ]
          -----------------

         Re:      Custodial Arrangement

Ladies and Gentlemen:

         Reference is made to that certain Intercreditor Agreement dated as of
[_____________ ___], 2003, by and among Ace Cash Express, Inc., a Texas
corporation (the "COMPANY"), Wells Fargo Bank Texas, National Association, as
Administrative Agent ("BANK AGENT") for itself and all other lenders ("Lenders")
from time to time party to the Bank Agreement (as such term is defined in the
Intercreditor Agreement), American Capital Financial Services, Inc., as Agent
("ACFS AGENT") for the purchasers ("PURCHASERS") from time to time party to the
ACFS Note Agreement (as such term is defined in the Intercreditor Agreement),
and Travelers Express Company, Inc. ("TRAVELERS") (as the same may be amended,
restated, supplemented or otherwise modified from time to time, the
"INTERCREDITOR AGREEMENT").

         The Company hereby notifies [NAME OF ARMORED COURIER] ("CUSTODIAL
AGENT"), and Custodial Agent hereby acknowledges, that the Company has assigned,
pledged and granted to the Bank Agent, for the benefit of Bank Agent and the
Lenders, a first priority security interest in certain property of the Company
(the "ASSETS"), including all of the Company's currency, coin, monies, funds,
checks, negotiable instruments, securities and other property and proceeds
thereof received, transported and delivered by Custodial Agent from time to time
(the "PROPERTY") in accordance with certain agreements and/or contracts from
time to time between Custodial Agent and the Company (as amended, restated,
supplemented or otherwise modified from time to time, collectively the
"Contracts"; the Assets, the Property, and the Contracts are collectively
referred to herein as the "COLLATERAL") and pertaining to the store locations of
the Company as set forth on the attached schedule (the "TERRITORY"), to secure
certain obligations and indebtedness of the Company owing to the Bank Agent and
the Lenders. The Company also notifies Custodial Agent that, and Custodial Agent
hereby acknowledges that, (a) the Company has assigned, pledged and granted to
the ACFS Agent, for the benefit of ACFS Agent and the Purchasers, a second
priority security interest in the Collateral to secure certain obligations and
indebtedness of the Company owing to the ACFS Agent and the Purchasers and (b)
the Company has assigned, pledged and granted to Travelers a third priority
security interest in the Collateral to secure certain obligations and
indebtedness of the Company owing to Travelers. Bank Agent, ACFS Agent, and
Travelers are collectively referred to herein as the "SECURED PARTIES" and each
individually as a "SECURED PARTY".

<PAGE>

[NAME OF ARMORED COURIER]
Page 2

         WITH RESPECT TO ANY AND ALL INSTRUCTIONS CUSTODIAL AGENT MAY RECEIVE
FROM ANY SECURED PARTY, THIS LETTER AGREEMENT, EFFECTIVE AS OF THE EFFECTIVE
DATE (AS HEREINAFTER DEFINED), SUPERSEDES ALL PRIOR LETTERS OF INSTRUCTION TO
WHICH CUSTODIAL AGENT IS A PARTY OR WHICH HAVE BEEN DELIVERED TO CUSTODIAL AGENT
BY THE COMPANY ("PRIOR LETTERS"), BUT EXPRESSLY EXCLUDING LETTERS DELIVERED BY
ACE FUNDING, LLC WHICH SHALL REMAIN IN EFFECT.

         This letter shall become effective as of the date first written above
(the "EFFECTIVE DATE") upon execution of this letter by each party hereto and
delivery of the same to Custodial Agent.

                  1. Notwithstanding any provision to the contrary contained in
the Contracts:

                  (a) Custodial Agent is hereby irrevocably authorized and
directed by the Company, upon the request of any Secured Party or its designee
(as any Secured Party may direct) delivered in accordance with Paragraph 3
hereof, to deliver to any Secured Party or its designee (as any Secured Party
may direct), to such location or locations in the Territory as may be specified
by any Secured Party or its designee (as any Secured Party may direct), any and
all Property and other Collateral then and thereafter received, transported and
delivered by Custodial Agent pursuant to the Contracts; provided, however, that
in the event of any insolvency, bankruptcy, liquidation, reorganization or other
similar proceedings or any receivership proceedings in connection therewith,
relative to the Company, Custodial Agent is hereby irrevocably authorized and
directed by the Company, to deliver to such persons any and all Property and
other Collateral then and thereafter received, transported and delivered by
Custodial Agent pursuant to the Contracts as may be directed in writing by any
Secured Party so long as each such written direction is accompanied by a written
certification from such Secured Party stating that a court of competent
jurisdiction has authorized such Secured Party to issue such written direction
and having attached thereto a copy of an order of such court granting to such
Secured Party such authority. Custodial Agent acknowledges and agrees to comply
(i) with the preceding authorization and direction from the Company, (ii) with
any such request or instruction from any Secured Party or its designee (as any
Secured Party may direct), and (iii) with any such written direction from any
Secured Party, in each case delivered in accordance with Paragraph 3 hereof. The
Company and each Secured Party agrees that Custodial Agent shall incur no
liability whatsoever to the Company or any Secured Party in acting upon any
request or instruction which Custodial Agent reasonably believes to have been
given in the manner provided in Paragraph 3 by an authorized representative of
any Secured Party. Instructions of any Secured Party or its designee (as any
Secured Party may direct) shall control, and, except as permitted by any Secured
Party or its designee (as any Secured Party may direct) below in this letter
agreement or otherwise in writing, the Company shall not have any right or
authority whatsoever to instruct Custodial Agent with respect to the Property or
any other Collateral.

                  (b) The Company shall pay directly to Custodial Agent all
costs and expenses payable to Custodial Agent pursuant to the Contracts,
including any additional cost or expense which Custodial Agent shall require if
Custodial Agent is directed by any Secured Party to perform any service
additional to or different from the services specifically set forth in the
Contracts.

<PAGE>

[NAME OF ARMORED COURIER]
Page 3

Custodial Agent hereby waives and releases any and all rights of offset or
counterclaim against, and any and all carrier's liens, security interests or
similar rights in, the Property or the other Collateral which Custodial Agent
may have by reason of the Contracts or otherwise, except to the extent necessary
to pay Custodial Agent the fees and expenses due under the Contracts.

                  (c) This letter agreement shall not be modified or amended
without the prior written consent of Custodial Agent, each Secured Party and the
Company. It is expressly agreed that the Contracts may be amended to add thereto
or to delete therefrom a location by an amendment duly executed by Custodial
Agent and the Company, and that the Contracts as amended shall thereafter
continue in full force and effect. This letter agreement shall apply to the
Contracts as amended. The Company shall notify each Secured Party of any and all
such amendments and will provide copies thereof upon written request from any
Secured Party.

                  (d) Custodial Agent hereby acknowledges that the Bank Agent,
for its benefit and the benefit of the Lenders, has been granted by the Company,
and that the Bank Agent, for its benefit and the benefit of the Lenders,
currently holds, a first priority security interest in the Collateral. Custodial
Agent hereby acknowledges that the ACFS Agent, for its benefit and the benefit
of the Purchasers, has been granted by the Company, and that the ACFS Agent, for
its benefit and the benefit of the Purchasers, currently holds, a second
priority security interest in the Collateral, subject in all cases to the prior
security interest of the Bank Agent, for its benefit and the benefit of the
Lenders. Custodial Agent hereby acknowledges that Travelers has been granted by
the Company, and that Travelers currently holds, a third priority security
interest in the Collateral, subject in all cases to the prior security interest
of the Bank Agent, for its benefit and the benefit of the Lenders, and the prior
security interest of ACFS Agent, for its benefit and the benefit of the
Purchasers. Custodial Agent agrees that at all times during which Custodial
Agent is in possession of any and all Property or other Collateral, Custodial
Agent shall maintain possession of and hold such Property and such other
Collateral for the benefit of Bank Agent, for its benefit and the benefit of the
Lenders, ACFS Agent, for its benefit and the benefit of the Purchasers, and
Travelers.

                  (e) Custodial Agent agrees that if any Secured Party succeeds
to the interest of the Company in the Contracts by means of enforcement of its
security interest or otherwise, Custodial Agent shall, upon notice to Custodial
Agent from such Secured Party in accordance with Paragraph 3 below of such
succession of interest, accept, recognize and treat such Secured Party, and its
transferees, successors and/or assigns, as a party to the Contracts in the name
and stead of the Company and shall continue to perform all obligations of
Custodial Agent under the Contracts as long as the obligations of the Company
are similarly satisfied by such Secured Party, or its transferees, successors
and/or assigns (including the payment of amounts owed to Custodial Agent
pursuant to the Contracts) and as long as the Contracts otherwise remain in
effect.

                  (f) Custodial Agent agrees to provide each Secured Party with
such information and records relating solely to the performance of the Contracts
as such Secured Party may reasonably request from time to time; provided that,
Custodial Agent shall furnish to the Company a copy of all such information and
records which are so provided to any Secured Party. The Company agrees to
reimburse Custodial Agent for any additional costs and expenses incurred in
providing such information to the Secured Parties.

<PAGE>

[NAME OF ARMORED COURIER]
Page 4

                  (g) In the event of loss of the Property, Custodial Agent's
liability shall be governed by the terms of the Contracts, provided that either
the Secured Parties or the Company (as agent for the Secured Parties) shall have
the right to present a claim to Custodial Agent for loss reimbursement in the
manner specified and allowed under the terms of the Contracts. Until this letter
agreement shall have been terminated, notwithstanding the terms of the
Contracts, any loss reimbursement for $25,000 or more shall be made payable to
any Secured Party or its designee (as any Secured Party may direct), unless
Custodial Agent is expressly directed in writing by any Secured Party or its
designee (as any Secured Party may direct) to make such loss reimbursement
payable directly to the Company. Any loss reimbursement for less than $25,000
may be made payable to the Company, provided that any loss reimbursement paid
after any Secured Party or its designee (as any Secured Party may direct) has
delivered a notice to Custodial Agent directing disposition of the Property as
provided in Paragraph 1(a) above or Paragraph 2(c) below shall be made payable
to the Secured Parties.

                  (h) Custodial Agent shall have no liability in the event of
any dispute involving ownership of the Property or any other matter relating to
this letter agreement other than Custodial Agent's nonperformance of its
agreements and obligations set forth herein, and the Company agrees to indemnify
and hold Custodial Agent harmless from liability relating to a dispute over
ownership of the Property, unless such claim is the result of Custodial Agent's
gross negligence or willful misconduct. The Company agrees to pay all court
costs and reasonable attorneys' fees which Custodial Agent may incur as a result
of any such dispute, provided that such dispute or any claim arising therefrom
is not the result of Custodial Agent's nonperformance of its obligations set
forth herein or its gross negligence or willful misconduct.

                  2. Subject to the terms of Paragraph 1 above:

                  (a) Custodial Agent shall continue, pursuant to the Contracts,
to pick up sealed shipments said or represented to contain currency from the
financial institution set forth on the attached schedule ("DESIGNATED LOCAL
BANK") for delivery to the retail stores of the Company (the "STORES") in the
Territory. The sealed shipments shall be delivered by Custodial Agent to the
Stores specifically designated by the Company, but (notwithstanding any
provision of the Contracts to the contrary) no shipment shall be delivered to
any location other than one or more of the Stores. Notwithstanding any provision
of the Contracts to the contrary, only shipments said or represented to contain
only the Company employee payroll checks and/or mail (including the Company's
internal correspondence) may be delivered to the regional office or offices of
the Company in the Territory.

                  (b) Furthermore, Custodial Agent shall continue to pick up
sealed shipments said to contain all excess cash, checks, drafts and other
instruments that are made available to Custodial Agent at the Stores and shall
deliver them only to the Designated Local Bank pursuant to the Contracts.

                  (c) The instructions contained in this Paragraph 2 may be
revoked at any time by notice to that effect by an authorized representative of
any Secured Party or its designee (as any Secured Party may direct) given to
Custodial Agent in accordance with Paragraph 3 of this letter.

<PAGE>

[NAME OF ARMORED COURIER]
Page 5

                  3. All requests, instructions and notices to be given pursuant
to this letter agreement shall be sent to the following addressee:

         If to the Company:
                  Ace Cash Express, Inc.
                  1231 Greenway Dr., Ste. 800
                  Irving, Texas 75038
                  Attention:  Jay B. Shipowitz
                  Telephone No.:  972 550 5030
                  Facsimile No.:  972 582 1430

         If to Custodial Agent:
                  [NAME OF CUSTODIAL AGENT]
                  [                         ]
                   -------------------------
                  [                         ]
                   -------------------------
                  Attention:     [          ]
                                  ----------
                  Telephone No.: [          ]
                                  ----------
                  Facsimile No.: [          ]
                                  ----------

         If to the Bank Agent:
                  Wells Fargo Bank Texas, National Association
                  4975 Preston Park Road, Suite 280
                  Plano, Texas 75093
                  Attention:    Michael B. Sullivan
                  Telephone No.:  214 740-1595
                  Facsimile No.:  214 969-0906

         If to the ACFS Agent:
                  American Capital Financial Services, Inc.
                  Two Bethesda Metro Center, 14th Floor
                  Bethesda, Maryland 20814
                  Attention:  Compliance Officer -- ACS/ACE
                  Telephone No.:  301 951 6122
                  Facsimile No.:  301 654 6714

                  with a copy to:

                  American Capital Strategies, Ltd.
                  2200 Ross Ave., Ste. 4500W
                  Dallas, Texas 75201
                  Attention:  Jeffrey N. MacDowell
                  Telephone No.:  214 273 6630
                  Facsimile No.:  214 273 6635

<PAGE>

[NAME OF ARMORED COURIER]
Page 6

         If to Travelers:
                  Travelers Express Company, Inc.
                  1550 Utica Ave. South MS 8020
                  Minneapolis, Minnesota 55416
                  Attention:   Chief Legal Counsel
                  Telephone No.: 952 591 3000
                  Facsimile No.: 952 591 3859

         Unless provided otherwise in this paragraph, all requests, instructions
and notices provided for hereunder shall be in writing (including by facsimile
transmission) and shall be deemed to have been duly given or made (i) in the
case of delivery by hand, when delivered, (ii) in the case of delivery by mail,
three business days (meaning a day other than Saturday, Sunday or a day on which
commercial banks in [CITY, STATE] are authorized to close) after being deposited
in the mails, postage prepaid, or (iii) in the case of delivery by facsimile
transmission, when delivered or transmitted by facsimile machine. All requests,
instructions and notices to be given to Custodial Agent by any Secured Party
hereunder may (a) be oral but shall not be binding until confirmed in writing,
provided that such Secured Party delivers written confirmation of such request,
instruction or notice, as provided in the preceding sentence, within one
business day after such oral request, instruction or notice and provided further
than notwithstanding anything to the contrary contained herein, the Custodial
Agent may immediately rely on such oral notice without liability to the Company
and, (b) in the absence of Custodial Agent's representative named herein, may be
given to the Branch Manager or, in his or her absence, an Assistant Branch
Manager, of the Designated Local Bank as set forth on the attached schedule.
Custodial Agent and Designated Local Bank may rely upon oral instructions from
any Secured Party, pending written confirmation, without liability to the
Company. Custodial Agent shall comply with any request, instruction or notice as
promptly after receipt thereof as is reasonably possible.

                  4. The information set forth on the attached schedule may be
amended by the Company delivering a revised schedule to Bank Agent, ACFS Agent,
Travelers, and Custodial Agent.

                  5. By accepting this letter agreement, Custodial Agent
represents that the Contracts are in full force and effect and that Custodial
Agent will not amend the Contracts in any manner except in accordance with
paragraph 1(c). Custodial Agent agrees that the Contracts will not be terminated
without at least ten (10) days' prior written notice to the Secured Parties.

      [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

<PAGE>

[NAME OF ARMORED COURIER]
Page 7

         If the foregoing accurately sets forth our agreements with respect to
the subject matter hereof, please sign below as indicated and return a signed
copy thereof to the Bank Agent or its legal counsel at such address as the Bank
Agent shall provide. This letter agreement may be executed in multiple
counterparts.

                                         Yours very truly,

                                         ACE CASH EXPRESS, INC.

                                         By:
                                            -----------------------------------
                                         Name:
                                              ---------------------------------
                                         Title:
                                               --------------------------------

Approved as of the date first above written:

WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION, as Bank Agent

By:
   ----------------------------------------
Name:
     --------------------------------------
Title:
      -------------------------------------

AMERICAN CAPITAL FINANCIAL SERVICES, INC., as ACFS Agent

By:
   -----------------------------------
Name:
     ---------------------------------
Title:
      --------------------------------

TRAVELERS EXPRESS COMPANY, INC., as Travelers

By:
   -----------------------------------
Name:
     ---------------------------------
Title:
      --------------------------------

Accepted and agreed to as of the date first above written:

[NAME OF ARMORED COURIER]

By:
   ----------------------------------------
Name:
     --------------------------------------
Title:
      -------------------------------------

<PAGE>

[NAME OF ARMORED COURIER]
Page 8

                            [NAME OF ARMORED COURIER]
                               [DATE OF SCHEDULE]

<Table>
<Caption>
Store Number      City & State     Designated Local Bank and Contact Information
------------      ------------     ---------------------------------------------
<S>               <C>              <C>

</Table>

<PAGE>

EXHIBIT H

                          [FORM OF CASH HOLDING REPORT]

To:      Wells Fargo Bank Texas, National Association,
            as Administrative Agent
         4975 Preston Park Road, Ste. 280
         Plano, Texas 75093

         Attention: [                ]
                     ----------------

         This Report ("REPORT") is delivered pursuant to that certain Credit
Agreement dated as of [____________], 2003, by and among Ace Cash Express, Inc.,
a Texas corporation (the "COMPANY"), the lenders from time to time party thereto
(the "LENDERS"), and Wells Fargo Bank Texas, National Association, as the
Administrative Agent for the Lenders (in such capacity, the "AGENT")(as the same
may be amended, restated, supplemented or otherwise modified from time to time,
the "AGREEMENT"; all capitalized terms used herein and not otherwise defined
shall have the meanings assigned to them in the Agreement). This Report covers
the calendar week ended ________ ___, 200__, and is delivered to the Agent
pursuant to Section 5.05(d) of the Agreement.

         The Company and/or its Subsidiaries opened the following accounts in
the calendar week ended _________ ___, 200__, and such accounts are or will be
used to maintain Cash Holdings:

<Table>
<Caption>
                                                                     FINANCIAL INSTITUTION HAS
                               LEGAL NAME OF FINANCIAL INSTITUTION   PREVIOUSLY DELIVERED A
ACCOUNT NO.   ACCOUNT HOLDER   MAINTAINING ACCOUNT                   LETTER AGREEMENT
-----------   --------------   -----------------------------------   -------------------------
<S>           <C>              <C>                                   <C>

</Table>

         The Company and/or its Subsidiaries entered into contracts with the
following armored couriers in the calendar week ended ___________ ___, 200__,
and such armored couriers are or will be used to transport Cash Holdings:

<Table>
<Caption>
                                                ARMORED COURIER HAS PREVIOUSLY
LEGAL NAME OF ARMORED COURIER                   DELIVERED A LETTER AGREEMENT
-----------------------------                   ------------------------------
<S>                                             <C>

</Table>

                                       1
<PAGE>

         The Company and/or its Subsidiaries opened the following stores during
the calendar week ended ____________, 200_ serviced by the indicated bank and
courier:

STORE NUMBER          CITY/STATE         BANK                COURIER

------------          ------------       ---------------     ------------------

         The Company hereby represents, warrants, and certifies that as of the
date hereof the Company is in compliance with Section 6.20 of the Agreement.

         This Report is executed on ___________ ____, 200__, by the duly
elected, qualified and acting [TITLE] of the Company.

                                              ACE CASH EXPRESS. INC.,

                                              By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                       2
<PAGE>

                                                                       EXHIBIT I

                        [FORM OF COMPLIANCE CERTIFICATE]

                  FINANCIAL COVENANT AND COMPLIANCE CERTIFICATE
         FOR CURRENT REPORTING PERIOD BEGINNING ___________, _______ AND
                  ENDING __________, _______ ("CURRENT PERIOD")

All capitalized terms used herein, unless otherwise defined herein, shall have
the meanings set forth in that certain Credit Agreement, dated as of March 31,
2003, by and among ACE Cash Express, Inc., Wells Fargo Bank Texas, National
Association, as Administrative Agent, and the other Lenders parties thereto (as
amended, modified, or supplemented, the "Agreement").

FINANCIAL COVENANTS.

                                                             Indicate Compliance
1.  Net Worth. The Borrower shall not any time permit
    the Net Worth of the Borrower and its Subsidiaries
    on a Consolidated basis to be less than
    $64,038,000 plus (b) seventy-five percent (75%) of
    all Net Income earned after the Closing Date
    during any fiscal quarter, provided, however that
    fiscal quarters in which Net Income is a negative
    amount will be excluded from the calculation of
    Net Income earned after the Closing Date, plus (c)
    an amount equal to the (100%) of all proceeds of
    any offering of Equity Interests (net of offering
    and professional fees and expenses) by the
    Borrower or any of its Subsidiaries occurring
    after the Closing Date that is permitted
    hereunder.                                             Yes       No

    Calculation                         $64,038,000

<Table>
<S>                 <C>       <C>                                <C>
                    Plus:     75% of cumulative Net Income
                              accruing after the Closing Date
                              (excluding the aggregate amount
                              of any losses incurred during
                              any calendar quarters occurring
                              after the Closing Date)

                    Plus:     Net proceeds of equity offerings   $
                                                                 ------------------
                    Equals:   Minimum Net Worth
                                                                 $
                                                                 ------------------
                                                                 $
                                                                 ==================

                                                                        Actual
     Calculation    Total capital stock                          $
                                                                 ------------------
                    Plus:     Paid-in capital                    $
                                                                 ------------------
                    Plus:     Retained Earnings                  $
                                                                 ------------------
                    Minus:    Treasury Stock                     $
                                                                 ------------------
                    Equals:   Net Worth                          $
                                                                 ==================
</Table>

2.   EBITDA. The Borrower shall not at any time permit as of the end of any
     fiscal quarter, permit the aggregate EBITDA of the Borrower and its
     Subsidiaries on a Consolidated basis for the four-quarter period ending on
     the last day of such fiscal quarter to be less than 85% of the aggregate
     EBITDA of the Borrower and its

                                       1
<PAGE>

     Subsidiaries on a Consolidated basis for the four-quarter period ending on
     the last day of the immediately preceding fiscal quarter.

                                                         Yes          No

                                                               Required

     Calculations         a.  Consolidated EBITDA for
                              four consecutive fiscal
                              quarter period ending
                              on immediately preceding
                              Calculation Date*                $
                                                               ----------------
                          b.  Multiplied by                          0.85

                          c.  Required EBITDA                  $
                                                               ----------------

                                                                    Actual
                          Consolidated EBITDA for four
                          previous fiscal quarter period
                          ending on Calculation Date**         $
                                                               ----------------

                          *Calculation of Consolidated
                          EBITDA for four consecutive
                          fiscal quarter period ending
                          on immediately preceding
                          Calculation Date

                          Net Income for such period           $
                                                               ----------------

                          Plus:     Interest Expense for
                                    such period
                                                               $
                                                               ----------------

                          Plus:     Federal, state and local
                                    income taxes for such
                                    period                     $
                                                               ----------------

                          Plus:     Depreciation, Amortization
                                    and other non-cash
                                    charges for such period
                                    (excluding, however, any
                                    reserves or non-cash       $
                                    charges relating to, or    ----------------
                                    in respect of, Payday
                                    Loans or any other loan
                                    program administered by
                                    the Borrower or its
                                    Subsidiaries)

                          Minus:    Extraordinary gains for
                                    such period                $
                                                               ----------------

                          Plus:     Extraordinary losses for
                                    such period                $
                                                               ---------------=

                          Equals:   EBITDA for such period     $
                                                               ================

                                       2
<PAGE>

                          **Calculation of Consolidated
                          EBITDA for four fiscal quarter
                          period ending on Calculation
                          Date.

                          Net Income for such period            $
                                                                ----------------
                          Plus:     Interest Expense
                                    for such period             $
                                                                ----------------
                          Plus:     Federal, state and local
                                    income taxes for such
                                    period                      $
                                                                ----------------

                          Plus:     Depreciation, Amortization
                                    and other non-cash
                                    charges for such period
                                    (excluding, however, any
                                    reserves or non-cash        $
                                    charges relating to, or     ----------------
                                    in respect of, Payday
                                    Loans or any other loan
                                    program administered by
                                    the Borrower or its
                                    Subsidiaries)

                          Minus:    Extraordinary gains for
                                    such period                $
                                                               ----------------

                          Plus:     Extraordinary gains for
                                    such period                $
                                                               ----------------
                          Equals:   EBITDA for such period     $
                                                               ================

                                       3
<PAGE>

3. Debt to EBITDA Ratio. At the end of any fiscal quarter, the
   Borrower shall not permit the Debt to EBITDA Ratio on a
   Consolidated basis to be equal to or more than (i) 3.50 to
   1.00 from the Closing Date until June 30, 2005 and (ii) 3.25
   to 1.00 at any time thereafter; provided, however, that as
   of the end of each of the fiscal quarters ending on each of
   March 31, 2004 and March 31, 2005, the Debt to EBITDA Ratio    Yes     No
   shall not be greater than 3.75 to 1.00.

   Calculation    Funded Indebtedness                $
                                                      -----------
                  EBITDA                             $
                                                      -----------

                  Funded Indebtedness/EBITDA
                  (Debt to Cash Flow Ratio)          =            to 1.00
                                                      -----------

4. Cash Flow Coverage Ratio. The Borrower shall not permit the
   Cash Flow Coverage Ratio of the Borrower and its
   Subsidiaries on a Consolidated basis to be less than
   1.15:1.00 at any time.                                         Yes     No

Calculation:             EBITDA: EBITDA for 12 consecutive
                         month period ending on such
                         Calculation Date
                                                                    $
                                                                    -----------
                         Minus:    Federal, state and local taxes
                                   paid for 12 consecutive month
                                   period ending on such
                                   Calculation Date                 $
                                                                    -----------

                         Minus:    total capital expenditures paid
                                   in cash for 12 consecutive month
                                   period ending on such
                                   Calculation Date                 $
                                                                    -----------

                         Plus:     Rent expense during 12
                                   consecutive month period
                                   ending on such Calculation
                                   Date                             $
                                                                    -----------

                         Equals:   Adjusted EBITDA                  $
                                                                    ===========

                         Adjusted Expenditures: cash Interest
                         Expense paid for 12 consecutive
                         month period ending on such Calculation
                         Date                                       $
                                                                    -----------
                         Plus:     Current portion of long term
                                   debt                             $
                                                                    -----------
                         Plus:     Rent expense                     $
                                                                    -----------
                         Equals:   Adjusted Expenditures            $
                                                                    -----------
                         Adjusted EBITDA/Adjusted
                         Expenditures (Cash Flow Coverage
                         Ratio)                            =            to 1.00
                                                            -----------

                                        4
<PAGE>

FINANCIAL STATEMENTS AND REPORTS:

a.   Annual CPA audited FYE consolidated and consolidating
     financial statements with Compliance Certificate and SEC
     Form 10-K on or before 90 days after FYE or such earlier
     time as my be required under applicable law                 Yes      No

b.   Quarterly unaudited consolidated and consolidating financial
     statements with Compliance Certificate and SEC Form 10-Q
     within forty-five (45) days of each quarter end (except for
     fourth quarter).                                            Yes      No

The undersigned hereby certifies that the above information and
computations are true and correct and not misleading as of the
date hereof, and that since the date of the Borrower's most
recent Compliance Certificate (if any):

               No Default or Event of Default has occurred under
               the Agreement during the Current Period, or been
---------      discovered from a prior period, and not reported.

               A Default or Event of Default (as described below)
               has occurred during the Current Period or has been
               discovered from a prior period and is being
---------      reported for the first time.

      Description of Default or Event of Default:______________________________

ACE CASH EXPRESS, INC.

By:
   ---------------------------------
Name:
     -------------------------------
Title:
      ------------------------------
Date:
     -------------------------------

                                        5

<PAGE>

EXHIBIT J

                       [FORM OF ASSIGNMENT AND ASSUMPTION]

         This Assignment and Assumption (the "Assignment and Assumption") is
dated as of the Effective Date set forth below and is entered into by and
between [INSERT NAME OF ASSIGNOR] (the "Assignor") and [INSERT NAME OF ASSIGNEE]
(the "Assignee"). Capitalized terms used but not defined herein shall have the
meanings given to them in the Credit Agreement identified below (as amended, the
"Credit Agreement"), receipt of a copy of which is hereby acknowledged by the
Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto
are hereby agreed to and incorporated herein by reference and made a part of
this Assignment and Assumption as if set forth herein in full.

         For an agreed consideration, the Assignor hereby irrevocably sells and
assigns to the Assignee, and the Assignee hereby irrevocably purchases and
assumes from the Assignor, subject to and in accordance with the Standard Terms
and Conditions and the Credit Agreement, as of the Effective Date inserted by
the Agent as contemplated below (i) all of the Assignor's rights and obligations
in its capacity as a Lender under the Credit Agreement and any other documents
or instruments delivered pursuant thereto to the extent related to the amount
and percentage interest identified below of all of such outstanding rights and
obligations of the Assignor under the respective facilities identified below
(including any letters of credit and guaranties included in such facilities) and
(ii) to the extent permitted to be assigned under applicable law, all claims,
suits, causes of action and any other right of the Assignor (in its capacity as
a Lender) against any Person, whether known or unknown, arising under or in
connection with the Credit Agreement, any other documents or instruments
delivered pursuant thereto or the loan transactions governed thereby or in any
way based on or related to any of the foregoing, including contract claims, tort
claims, malpractice claims, statutory claims and all other claims at law or in
equity related to the rights and obligations sold and assigned pursuant to
clause (i) above (the rights and obligations sold and assigned pursuant to
clauses (i) and (ii) above being referred to herein collectively as the
"Assigned Interest"). Such sale and assignment is without recourse to the
Assignor and, except as expressly provided in this Assignment and Assumption,
without representation or warranty by the Assignor.

1.       Assignor:
                               ------------------------------

2.       Assignee:
                               ------------------------------
                               [AND IS AN AFFILIATE/APPROVED FUND OF
                               [IDENTIFY LENDER]1]

3.       Borrower(s):          ACE Cash Express, Inc. (the "Borrower")

4.       Administrative Agent: Wells Fargo Bank Texas, National Association, as
                               the Administrative Agent under the Credit
                               Agreement (the "Agent")

----------

(1) Select as applicable.

<PAGE>

5.       Credit Agreement: Credit Agreement dated as of March 31, 2003 among
                           Borrower, the Lenders parties thereto, Agent, and the
                           other agents parties thereto (as amended,
                           supplemented, restated or otherwise modified, the
                           "Credit Agreement")

6.       Assigned Interest:

<Table>
<Caption>
                        Aggregate Amount of       Amount of      Percentage Assigned
                       Commitment/Loans for   Commitment/Loans           of
Facility Assigned(2)       all Lenders             Assigned       Commitment/Loans(3)
--------------------   --------------------   ----------------   --------------------
<S>                    <C>                    <C>                <C>

                       $                      $                               %

                       $                      $                               %

                       $                      $                               %
</Table>

Effective Date: _____________ ___, 20___ [TO BE INSERTED BY AGENT AND WHICH
SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

                                           ASSIGNOR

                                           [NAME OF ASSIGNOR]

                                           By:
                                              ------------------------------
                                              Title:

                                           ASSIGNEE

                                           [NAME OF ASSIGNEE]

                                           By:
                                              ------------------------------
                                              Title:

----------

(2)  Fill in the appropriate terminology for the types of facilities under the
     Credit Agreement that are being assigned under this Assignment (e.g.
     "Revolving Commitment" or "Seasonal Revolving Commitment")

(3)  Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans
     of all Lenders thereunder.

                                        2
<PAGE>

[CONSENTED TO AND](4) Accepted:

WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION, as
  Administrative Agent

By
  --------------------------------------
  Title:

[CONSENTED TO:](5)

ACE CASH EXPRESS, INC.

By
  --------------------------------------
  Title:

----------

(4)  To be added only if the consent of the Agent is required by the terms of
     the Credit Agreement.

(5)  To be added only if the consent of the Borrower is required by the terms of
     the Credit Agreement.

                                        3
<PAGE>

                                                                         ANNEX 1

                        STANDARD TERMS AND CONDITIONS FOR
                            ASSIGNMENT AND ASSUMPTION

                  1. Representations and Warranties.

                  1.1 Assignor. The Assignor (a) represents and warrants that
(i) it is the legal and beneficial owner of the Assigned Interest, (ii) the
Assigned Interest is free and clear of any lien, encumbrance or other adverse
claim and (iii) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and Assumption and to
consummate the transactions contemplated hereby; and (b) assumes no
responsibility with respect to (i) any statements, warranties or representations
made in or in connection with the Credit Agreement or any other Credit Document,
(ii) the execution, legality, validity, enforceability, genuineness, sufficiency
or value of the Credit Documents or any collateral thereunder, (iii) the
financial condition of the Borrower, any of its Subsidiaries or Affiliates or
any other Person obligated in respect of any Credit Document or (iv) the
performance or observance by the Borrower, any of its Subsidiaries or Affiliates
or any other Person of any of their respective obligations under any Credit
Document.

                  1.2. Assignee. The Assignee (a) represents and warrants that
(i) it has full power and authority, and has taken all action necessary, to
execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby and to become a Lender under the Credit
Agreement, (ii) it satisfies the requirements, if any, specified in the Credit
Agreement that are required to be satisfied by it in order to acquire the
Assigned Interest and become a Lender, (iii) from and after the Effective Date,
it shall be bound by the provisions of the Credit Agreement as a Lender
thereunder and, to the extent of the Assigned Interest, shall have the
obligations of a Lender thereunder, (iv) it has received a copy of the Credit
Agreement, together with copies of the most recent financial statements
delivered pursuant to Section 5.05 thereof, as applicable, and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Assignment and Assumption and to
purchase the Assigned Interest on the basis of which it has made such analysis
and decision independently and without reliance on the Agent or any other
Lender, and (v) if it is a Foreign Lender, attached to the Assignment and
Assumption is any documentation required to be delivered by it pursuant to the
terms of the Credit Agreement, duly completed and executed by the Assignee; and
(b) agrees that (i) it will, independently and without reliance on the Agent,
the Assignor or any other Lender, and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under the Credit Documents, and (ii) it will
perform in accordance with their terms all of the obligations which by the terms
of the Credit Documents are required to be performed by it as a Lender.

                  2. Payments. From and after the Effective Date, the Agent
shall make all payments in respect of the Assigned Interest (including payments
of principal, interest, fees and

                                        4
<PAGE>

other amounts) to the Assignor for amounts which have accrued to but excluding
the Effective Date and to the Assignee for amounts which have accrued from and
after the Effective Date.

                  3. General Provisions. This Assignment and Assumption shall be
binding upon, and inure to the benefit of, the parties hereto and their
respective successors and assigns. This Assignment and Assumption may be
executed in any number of counterparts, which together shall constitute one
instrument. Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy shall be effective as delivery of a
manually executed counterpart of this Assignment and Assumption. This Assignment
and Assumption shall be governed by, and construed in accordance with, the law
of the State of New York.

                                        5

<PAGE>

SCHEDULE 1

                                  Pricing Grid

<Table>
<Caption>
Debt to            Applicable Margin     Applicable Margin   Applicable Margin for
EBITDA Ratio       for LIBO Rate Loans   for ABR Loans       Reference Rate Loans
----------------   -------------------   -----------------   --------------------
<S>                <C>                   <C>                 <C>

=> 3.50x           4.25%   per annum     2.75% per annum     4.25% per annum

< 3.50x => 3.25x   4.00%   per annum     2.50% per annum     4.00% per annum

< 3.25x => 3.00x   3.75%   per annum     2.25% per annum     3.75% per annum

< 3.00x =>2.75x    3.50%   per annum     2.00% per annum     3.50% per annum

< 2.75x =>2.50x    3.25%   per annum     1.75% per annum     3.25% per annum

< 2.50x            3.00%   per annum     1.50% per annum     3.00% per annum
</Table>

<PAGE>

SCHEDULE 2.01(A)

                          Revolving Credit Commitments

PART I. REVOLVING CREDIT COMMITMENTS ON THE CLOSING DATE

<Table>
<Caption>
                                               REVOLVING CREDIT
                   LENDER                         COMMITMENT
                   ------                      ----------------
<S>                                            <C>                     <C>

Wells Fargo Bank Texas, National Association   $ 34,285,714.29         28.571%

            JPMorgan Chase Bank                $ 23,314,285.71         19.429%

           Bank of America, N.A                $ 17,142,857.14         14.286%

        US Bank National Association           $ 13,714,285.71         11.429%

          First American Bank SSB              $ 10,285,714.29          8.571%

        Southwest Bank of Texas N.A            $  6,857,142.86          5.714%

  Texas Capital Bank National Association      $  5,828,571.43          4.857%

             National City Bank                $  5,142,857.14          4.286%

            Wachovia Bank, N.A                 $  3,428,571.43          2.857%

TOTAL                                          $120,000,000.00
</Table>

PART II. REVOLVING CREDIT COMMITMENTS UPON EFFECTIVENESS OF INCREMENTAL LOAN
         AMENDMENT

<Table>
<Caption>
                                               REVOLVING CREDIT
                   LENDER                         COMMITMENT
                   ------                      ----------------
<S>                                            <C>                  <C>

Wells Fargo Bank Texas, National Association   $ 27,428,571.43         22.857%

            JPMorgan Chase Bank                $ 23,314,285.71         19.429%

           Bank of America, N.A                $ 17,142,857.14         14.286%

        US Bank National Association           $ 13,714,285.71         11.429%

          First American Bank SSB              $ 10,285,714.29          8.571%

        Southwest Bank of Texas N.A            $  6,857,142.86          5.714%

  Texas Capital Bank National Association      $  5,828,571.43          4.857%

             National City Bank                $  5,142,857.14          4.286%

            Wachovia Bank, N.A                 $  3,428,571.43          2.857%

   Person providing Incremental Facility       $  6,857,142.86          5.714%

TOTAL                                          $120,000,000.00
</Table>

<PAGE>

SCHEDULE 2.01(B)

                      Seasonal Revolving Credit Commitments

PART I. SEASONAL REVOLVING CREDIT COMMITMENTS ON THE CLOSING DATE

<Table>
<Caption>
                                               SEASONAL REVOLVING
                   LENDER                         COMMITMENT
                   ------                      ----------------
<S>                                            <C>                  <C>
Wells Fargo Bank Texas, National Association    $ 5,714,285.71         12.698%

            JPMorgan Chase Bank                 $10,685,714.29         23.746%

           Bank of America, N.A                 $ 7,857,142.86         17.460%

        US Bank National Association            $ 6,285,714.29         13.968%

          First American Bank SSB               $ 4,714,285.71         10.476%

        Southwest Bank of Texas N.A             $ 3,142,857.14          6.984%

  Texas Capital Bank National Association       $ 2,671,428.57          5.937%

             National City Bank                 $ 2,357,142.86          5.238%

            Wachovia Bank, N.A                  $ 1,571,428.57          3.492%

TOTAL                                           $45,000,000.00
</Table>

PART II. SEASONAL REVOLVING CREDIT COMMITMENTS UPON EFFECTIVENESS OF INCREMENTAL
         LOAN AMENDMENT

<Table>
<Caption>
                                               SEASONAL REVOLVING
                   LENDER                         COMMITMENT
                   ------                      ----------------
<S>                                            <C>                  <C>

Wells Fargo Bank Texas, National Association     $12,571,428.57        22.857%

            JPMorgan Chase Bank                  $10,685,714.29        19.429%

           Bank of America, N.A                  $ 7,857,142.86        14.286%

        US Bank National Association             $ 6,285,714.29        11.429%

          First American Bank SSB                $ 4,714,285.71         8.571%

        Southwest Bank of Texas N.A              $ 3,142,857.14         5.714%

  Texas Capital Bank National Association        $ 2,671,428.57         4.857%

             National City Bank                  $ 2,357,142.86         4.286%

            Wachovia Bank, N.A                   $ 1,571,428.57         2.857%

   Person providing Incremental Facility         $ 3,142,857.14         5.714%

TOTAL                                            $55,000,000.00
</Table>

<PAGE>

SCHEDULE 2.02(a)

                             Domestic Lending Office

Unless otherwise indicated, each Lender's Domestic Lending Office is the same as
its address for notices.

1.       Wells Fargo Bank Texas, National Association
         4975 Preston Park Road, Suite 280
         Plano, Texas 75093
         Attn.:  Michael B. Sullivan
         Telephone:        (214) 740-1595
         Facsimile:        (214) 969-0906

2.       JPMorgan Chase Bank
         2200 Ross Avenue
         Dallas, Texas 75201
         Attn.:  D. Scott Harvey
         Telephone:        (214) 965-3003
         Facsimile:        (214) 965-3024

3.       Bank of America, N.A.
         901 Main St.
         Dallas, Texas 75202
         Attn.:  Patrick Honey
         Telephone:        (214) 209-0044
         Facsimile:        (214) 209-9668

4.       US Bank National Association
         One US Bank Plaza
         St. Louis, Missouri 63101
         Attn.:  Joseph Sooter
         Telephone:        (314) 418-2462
         Facsimile:        (314) 418-3859

5.       First American Bank SSB
         8401 N. Central Expressway, Suite 500
         Dallas, Texas 75225
         Attn.:  J. Paul. Voorhies
         Telephone:        (972) 419-3362
         Facsimile:        (972) 419-3589

                                Schedule 2.02(a)
<PAGE>

6.       Southwest Bank of Texas, N.A.

         Notice Address                               Domestic Lending Office

         909 Lake Carolyn Parkway, Suite 1170         4400 Post Oak Parkway
         Irving, Texas  75039                         Houston, Texas  77027
         Attn.:  Melinda Jackson
         Telephone:        (972) 506-1512
         Facsimile:        (972) 506-1505

7.       Texas Capital Bank National Association

         Notice Address                               Domestic Lending Office
         6060 N. Central Expwy #800                   c/o Rod Baker
         Dallas, Texas  75206                         2100 McKinney Ave. #900
         Attn.:  Ellen Riederer                       Dallas, Texas 75201
         Telephone:        (972) 560-4542
         Facsimile:        (214) 706-6739

8.       National City Bank
         155 East Broad Street
         Columbus, Ohio 43215
         Attn.:  Michael J. Durbin
         Telephone:        (614) 463-8844
         Facsimile:        (614) 463-8572

9.       Wachovia Bank, N.A.
         201 S. College Street, CP 9
         Charlotte, North Carolina 28288
         Attn.:  Erika Myers
         Telephone:        (704) 383-0296
         Facsimile:        (704) 383-7999

                                Schedule 2.02(a)
<PAGE>

SCHEDULE 2.02(B)

                            Eurodollar Lending Office

1.       Wells Fargo Bank Texas, National Association
         4975 Preston Park Road, Suite 280
         Plano, Texas 75093
         Attn.:  Michael B. Sullivan
         Telephone:        (214) 740-1595
         Facsimile:        (214) 969-0906

2.       JPMorgan Chase Bank
         2200 Ross Avenue
         Dallas, Texas 75201
         Attn.:  D. Scott Harvey
         Telephone:        (214) 965-3003
         Facsimile:        (214) 965-3024

3.       Bank of America, N.A.
         901 Main St.
         Dallas, Texas 75202
         Attn.:  Patrick Honey
         Telephone:        (214) 209-0044
         Facsimile:        (214) 209-9668

4.       US Bank National Association
         One US Bank Plaza
         St. Louis, Missouri 63101
         Attn.:  Joseph Sooter
         Telephone:        (314) 418-2462
         Facsimile:        (314) 418-3859

5.       First American Bank SSB
         8401 N. Central Expressway, Suite 500
         Dallas, Texas 75225
         Attn.:  J. Paul. Voorhies
         Telephone:        (972) 419-3362
         Facsimile:        (972) 419-3589

6.       Southwest Bank of Texas, N.A.
         4400 Post Oak Parkway
         Houston, Texas  77027

                                Schedule 2.02(b)
<PAGE>

7.       Texas Capital Bank National Association
         c/o Rod Baker
         2100 McKinney Ave. #900
         Dallas, Texas 75201

8.       National City Bank
         155 East Broad Street
         Columbus, Ohio 43215
         Attn.:  Michael J. Durbin
         Telephone:        (614) 463-8844
         Facsimile:        (614) 463-8572

9.       Wachovia Bank, N.A.
         201 S. College Street, CP 9
         Charlotte, North Carolina 28288
         Attn.:  Erika Myers
         Telephone:        (704) 383-0296
         Facsimile:        (704) 383-7999

                                Schedule 2.02(b)

<PAGE>

                                  SCHEDULE 3.06

                                   LITIGATION

3.06(a)(i)

     o    Jennafer Long v. Ace Cash Express, Inc.: This lawsuit regarding Goleta
          bank loans (the "Bank Loans") offered and made at the Borrower's
          locations in Florida was filed in Clay County, Florida and served on
          the Borrower on November 8, 2000. The plaintiff, for herself and
          others similar situated, alleges that the Bank Loans offered at the
          Borrower's locations in Florida were made by the Borrower rather than
          by Goleta and therefore those Bank Loans violated Florida usury laws
          and the offering of those Bank Loans involves misrepresentations and
          deceptive practices in violation of Florida law. The plaintiff seeks
          an unspecified amount of damages, including an amount equal to all
          interest charged on the Bank Loans made in Florida, the plaintiff's
          attorneys' fees, and court costs. The Borrower's attempt to remove
          this case to federal court was not successful. On October 2, 2001, the
          court granted Goleta's motion to intervene as a defendant in this
          lawsuit. The Borrower and Goleta filed a motion to dismiss the
          plaintiff's complaint on the basis that Goleta is the lender of the
          Bank Loans and, under federal law, is entitled to charge interest at
          the rate permitted by California law. But on March 20, 2002, the court
          denied that motion, and on April 19, 2002, each of the Borrower and
          Goleta filed its answer to the plaintiff's complaint. On February 10,
          2003, the parties signed a Stipulation to stay the action pending
          consummation of present settlement negotiations regarding Beverly
          Purdie v. ACE Cash Express, Inc. (described below).

     o    Vonnie T. Hudson v. Ace Cash Express, Inc. et al.: This lawsuit
          regarding the Bank Loans offered and made at the Borrower's locations
          in Indiana was filed on September 11, 2001 in the U.S. District Court
          for the Southern District of Indiana. This lawsuit was filed against
          the Borrower; Goleta; the Borrower's Chairman of the Board, Raymond C.
          Hemmig; the Borrower's Chief Executive Officer, Donald H. Neustadt;
          the Borrower's President & Chief Operating Officer, Jay B. Shipowitz;
          and a former employee of the Borrower. The plaintiff alleged
          violations of (1) the Indiana UCCC and the Indiana "loansharking"
          statute, because the interest charged for the Bank Loans exceeded the
          finance charges permitted by those statutes, (2) the federal TILA,
          Regulation Z, and the Indiana UCCC, because the disclosures to
          borrowers of Bank Loans did not comply with the disclosure
          requirements of those laws, and (3) the federal Racketeer Influenced
          Corrupt Organizations (RICO) Act. In the complaint the plaintiff
          purported to represent a class of all persons to whom a Bank Loan has
          been made at any location of the Borrower in Indiana (a) since
          September 11, 1999, regarding the excess-charge claims, (b) since
          September 11, 2000, regarding the disclosure-violation claims, and (c)
          since September 11, 1997, regarding the federal RICO Act claims. The
          plaintiff sought relief of various kinds, including (i) for the
          members of the class of plaintiffs who were allegedly charged
          excessive interest, an order declaring the Loans to them "void," the
          refund of all finance charges or interest paid by them in excess of
          the maximum finance charges permitted under the Indiana UCCC, and a
          penalty (to be determined by the court) in a maximum amount equal to
          the greater of either all of the finance charges or interest received
          from

<PAGE>

          them or up to ten times the amount of all excess finance charges or
          interest received from them; (ii) for the members of the class of
          plaintiffs who allegedly did not receive proper disclosures under the
          federal TILA, Regulation Z, and the Indiana UCCC, statutory damages of
          $500,000 each for violations of those statutes; (iii) for the members
          of the class of plaintiffs allegedly damaged because of violations of
          the RICO Act, an amount equal to three times those damages; and (iv)
          the plaintiff's attorneys' fees and court costs. On December 17, 2001,
          the defendants moved to dismiss the plaintiff's complaint, and on May
          30, 2002, the court granted the motion. Based on its review of the
          complaint and other filed documents, the court concluded that Goleta
          made the Bank Loan to the plaintiff and then sold a participation
          interest in that Bank Loan to the Borrower, so that the claims
          asserted in the complaint were not sufficient to entitle the plaintiff
          to any damages or other legal relief. The court, however, afforded the
          plaintiff an opportunity to amend her complaint to assert legally
          sufficient claims. On June 25, 2002, the plaintiff filed an amended
          complaint that was substantially similar to the complaint that was
          dismissed, except the amended complaint did not name Goleta as a
          defendant and did not assert any disclosure-violation claims. On July
          8, 2002, the Borrower and the remaining defendants filed a motion to
          dismiss the amended complaint, asserting that the amended complaint
          did not allege sufficient new facts to justify relief and that the
          court's initial decision was dispositive. On September 30, 2002, the
          court entered an order dismissing the amended complaint, with
          prejudice. On October 15, 2002, the plaintiff filed a notice of appeal
          to the United States Court of Appeals for the Seventh Circuit. On
          January 15, 2003 the plaintiff's initial brief in his appeal of the
          trial court's dismissal of his complaint was filed. The parties met
          via telephone for a court-approved settlement conference on February
          28, 2003. The parties have agreed to stay the proceedings in the
          plaintiff's appeal pending consummation of present settlement
          negotiations regarding Beverly Purdie v. ACE Cash Express, Inc.
          (described below).

     o    Rufus Patricia Brown v. Ace Cash Express, Inc. et al. This lawsuit
          regarding both the Borrower's former "payday loan" activities and the
          Bank Loans offered and made at the Borrower's locations in Maryland
          was filed on August 20, 2001 in the Circuit Court for Baltimore City,
          Maryland. On September 12, 2001, the plaintiff filed an amended
          complaint against the Borrower and unnamed franchisees of the
          Borrower. In the complaint, the plaintiff purports to represent a
          class of all consumers with whom the Borrower has entered into any
          payday-loan transaction or to whom a Bank Loan has been made at any
          location of the Borrower in Maryland since April 1, 2000. The
          plaintiff alleges that the defendants' loan-related activities violate
          the Maryland usury laws, the Maryland Consumer Loan Law, the Maryland
          Unsecured Closed End Credit Regulation Act, and the Maryland Consumer
          Protection Act and are unconscionable under Maryland law. The
          plaintiff seeks relief of various kinds, including a permanent
          injunction against any further alleged illegal activities, an order
          that all obligations of the class of plaintiffs to the defendants are
          void, the return (as restitution) to the class of plaintiffs of all
          amounts paid to the defendants, an order dissolving the Borrower and
          prohibiting all defendants from conducting any further financial
          services business, the disgorgement and return of all profits from the
          loan-related activities, the plaintiff's attorneys' fees and expenses,
          and court costs. On September 7, 2001, the Borrower removed this
          lawsuit to the United States District Court for the District of
          Maryland, but on November 14, 2001,

                                       2
<PAGE>

          the federal court granted the plaintiff's motion to remand this
          lawsuit back to the Circuit Court of Baltimore City. On January 3,
          2002, Goleta filed a motion to intervene as a defendant in this
          lawsuit, and the court granted that motion on January 8, 2002.

     o    Beverly Purdie v. Ace Cash Express, Inc. et al.: This lawsuit
          regarding both the Borrower's former "payday loan" activities and the
          Bank Loans offered and made at the Borrower's locations was filed on
          September 6, 2001, in the United States District Court for the
          Northern District of Texas. The original complaint named as defendants
          the Borrower and certain executive officers and directors and a former
          employee of the Borrower. As the result of two amended complaints,
          however, only the Borrower and Goleta are currently defendants in this
          lawsuit. In her second amended complaint, the plaintiff purports to
          represent a class of all consumers in the United States with whom the
          Borrower has entered into any payday-loan transaction or to whom a
          Bank Loan has been made at any location of the Borrower since
          September 6, 1997, as well as sub-classes of persons who have engaged
          in those kinds of transactions with the Borrower or at the Borrower's
          locations and are alleged to be victims of usury or of unfair or
          deceptive lending practices under the laws of various states in the
          United States during the time periods within the various applicable
          statutes of limitations. The plaintiffs allege that the defendants'
          loan-related activities violate the federal RICO Act and the laws and
          regulations of various states regarding usury, deceptive trade
          practices (including the Texas Deceptive Trade Practices Act), and
          other consumer protections. The plaintiff seeks relief of various
          kinds, including a permanent injunction against any further alleged
          illegal activities; the return (as restitution) to the class and
          sub-classes of plaintiffs of all amounts paid to the defendants;
          damages equal to three times the amount of all fees and interests paid
          by the class & sub-classes of plaintiffs since Sept. 6, 1997; punitive
          damages of at least $250 million; the plaintiff's attorneys' fees; and
          court costs. On January 18, 2002, the Borrower and Goleta filed a
          motion to dismiss the second amended complaint, asserting that the
          federal RICO Act claims were legally deficient and should be dismissed
          and that, if those claims are dismissed, the court should not retain
          jurisdiction of the remaining state-law claims. On October 29, 2002,
          the court granted the Borrower's and Goleta's motion to dismiss the
          plaintiff's complaint. The court found that the plaintiff did not
          allege sufficient facts to support her federal RICO claims and,
          accordingly, dismissed those claims with prejudice. In the absence of
          federal-law claims, the court declined to retain jurisdiction over the
          plaintiff's state-law claims and, accordingly, dismissed those claims
          without prejudice. On November 12, 2002, the plaintiff filed a motion
          with the trial court requesting that the court vacate its judgment,
          amend its order dismissing her complaint, and grant the plaintiff
          permission to file an amended complaint. The Borrower and Goleta
          currently have until April 1, 2003, to respond to the plaintiff's
          motion. The parties are engaged in ongoing settlement discussions.

     o    Hale v. Ace Cash Express, Inc.: On December 18, 2002, the Borrower was
          served with a lawsuit that had originally been filed (but not served)
          in late October 2002 in the United States District Court for the
          Western District of Virginia. The amended class action complaint
          served on the Borrower names only the Borrower as a defendant and
          relates to the Borrower's activities in connection with the short-term
          consumer loans of Goleta

                                       3
<PAGE>

          offered at the Borrower's stores in Virginia between April 1, 2000 and
          October 10, 2002. The plaintiff, for himself and others similarly
          situated, alleges that the Borrower's loan-related activities during
          that period violated the federal RICO Act, the Virginia Consumer
          Finance (or Small Loan) Act, the Virginia Payday Loan Act, and the
          Virginia Consumer Protection Act and constituted fraud. The plaintiff
          seeks actual and punitive damages of various kinds, including (under
          the RICO Act) an amount equal to three times all of the Borrower's
          proceeds from the loans made in Virginia during the approximate two
          and one-half years; an amount equal to three times the actual damages
          or $1,000, whichever is greater, for each violation of the Virginia
          Consumer Protection Act; attorneys' fees & court costs. The key issue
          in this lawsuit is whether the Borrower or Goleta should properly be
          characterized as the lender or the maker of the short-term loans.
          Contrary to the plaintiff's contentions, the Borrower maintains that
          Goleta was the lender and that, because Goleta was a national bank
          located in California, the short-term loans were governed by federal
          and California law, not Virginia law. On February 5, 2003, the
          Borrower moved to compel arbitration and to stay all proceedings until
          completion of arbitration. The plaintiff has filed an opposition to
          the Borrower's motion to compel arbitration.

     o    The Borrower has supplied information regarding certain of its payday
          loans to the Federal Trade Commission ("FTC") in response to the FTC's
          letter dated December 12, 2002.

     o    Ace Currency Exchange, Inc. v. Ace Cash Express, Inc.; alleging breach
          of Consent Decree dated May 23, 1993 in Ace Currency Exchange, Inc. v.
          Ace Cash Express, Inc. This lawsuit regarding the Borrower's use of
          the name "Ace" in the City of Baltimore, Maryland and Baltimore,
          Howard and a portion of Anne Arundel counties, Maryland in alleged
          violation of that certain Consent Decree dated May 23, 1993 was filed
          on or about March 4, 2003 in the United States District Court for the
          District of Maryland. The plaintiff alleges the Borrower's violation
          of the Consent Decree and seeks that (1) the Borrower be held in
          contempt of court, (2) the Borrower pay compensatory damages of
          $500,000 plus interest and costs, (3) the Borrower be enjoined from
          continuing to violate the Consent Decree, (4) the Borrower account to
          and pay the plaintiff all profits received during the period of
          violation and that such damages be trebled and (5) costs, attorneys'
          fees and other appropriate relief be awarded to the plaintiff against
          the Borrower.

   3.06(c)

     o    See Ace Currency Exchange, Inc. v. Ace Cash Express, Inc.; alleging
          breach of Consent Decree dated May 23, 1993 in Ace Currency Exchange,
          Inc. v. Ace Cash Express, Inc. described above. Court order to resolve
          lawsuit in accordance with an Agreement dated October 24, 1989,
          between the Borrower and Ace Currency Exchange, Inc. In that
          Agreement, the Borrower agreed to do the following in the City of
          Baltimore, Maryland, in the counties of Baltimore and Howard,
          Maryland, and in a portion of the County of Anne Arundel, Maryland:
          (1) cease using A.C.E. in all permanent storefront signage, (2) cease
          using A.C.E. on all temporary banners and signage (though temporary
          posters may include the Borrower's logo with A.C.E. appearing not
          larger than approximately 1 1/2"),

                                       4
<PAGE>

          (3) cease reference to ACE when answering the telephone at its
          locations, and (4) cease reference to ACE in all future media
          advertising.

     o    Settlement Agreement between Ace Cash Express, Inc. and the Ohio
          Division of Financial Institutions dated as of December 31, 2002 - See
          Borrower's Form 8-K dated as of December 20, 2002 filed with the
          Securities and Exchange Commission ("SEC") on January 6, 2003

     o    Final Order of the State of Florida, Department of Banking and
          Finance, Division of Securities and Finance dated December 30, 2002 In
          re Ace Cash Express, Inc. d/b/a Ace America's Cash Express - See
          Borrower's Form 8-K dated as of December 20, 2002 filed with the SEC
          on January 6, 2003

     o    Consent Judgment dated December 13, 2002 in State of North Carolina ex
          rel. Roy Cooper, Attorney General and Joseph A. Smith, Jr.,
          Commissioner of Banks v. Ace Cash Express, Inc. - See Borrower's Form
          10-Q for the quarterly period ended December 31, 2002 filed with the
          SEC on February 14, 2003

     o    Consent Order In the Matter of Ace Cash Express, Inc., Agent and Bank
          Service Provider for Goleta National Bank, dated October 25, 2002 -
          See Borrower's Form 8-K dated as of October 25, 2002 filed with the
          SEC on November 5, 2002

     o    Consent Decree dated May 6, 2002 - State of Colorado, ex rel. Ken
          Salazar, Attorney General for the state of Colorado, and Laura E.
          Udis, Administrator, Uniform Consumer Credit Code v. Ace Cash Express,
          Inc. - See Borrower's Form 10-Q for the quarterly period ended March
          31, 2002 filed with the SEC on May 15, 2002

     o    Agreed Final Judgment and Permanent Injunction in Western Union
          Corporation v. Ace Cash Express, Inc., dated March 27, 1990 -
          Injunction prohibiting the use of the slogan "We Do Western Union Only
          Better" in connection with the promotion and advertisement of money
          transfer services.

                                       5
<PAGE>

                                  SCHEDULE 3.14

                           ORGANIZATION; SUBSIDIARIES

<Table>
<Caption>
                        JURISDICTION OF      STATES AUTHORIZED TO
       BORROWER          INCORPORATION         CONDUCT BUSINESS
       --------         ---------------      --------------------
<S>                     <C>                  <C>

Ace Cash Express, Inc.       Texas           Alabama
                                             Alaska
                                             Arizona
                                             Arkansas
                                             California
                                             Colorado
                                             Connecticut
                                             Delaware
                                             Washington DC
                                             Florida
                                             Georgia
                                             Indiana
                                             Iowa
                                             Kansas
                                             Louisiana
                                             Maryland
                                             Michigan
                                             Minnesota
                                             Mississippi
                                             Missouri
                                             Montana
                                             Nebraska
                                             Nevada
                                             New Jersey
                                             New Mexico
                                             North Carolina
                                             Ohio
                                             Oklahoma
                                             Oregon
                                             Pennsylvania
                                             Rhode Island
                                             South Carolina
                                             Tennessee
                                             Texas
                                             Utah
                                             Vermont
                                             Virginia
                                             Washington
                                             Wisconsin
                                             Wyoming
                                             District of Columbia
</Table>

<Table>
<Caption>
                                                                  STATES
                                               STATES          AUTHORIZED TO
                        JURISDICTION OF      CONDUCTING          CONDUCT
  NAME OF SUBSIDIARY     INCORPORATION        BUSINESS           BUSINESS       EQUITY OWNERSHIP      TRADE NAMES
  ------------------    ---------------      ----------        -------------    ----------------      -----------
<S>                     <C>                  <C>               <C>              <C>                   <C>

 Check Express, Inc.        Florida             None              Florida        All outstanding          None
                                                                                 shares of common
                                                                                  stock owned by
                                                                                     Borrower

    CHECK EXPRESS           Florida             None              Florida        All outstanding          None
    FLORIDA, INC.                                               California       shares of common
                                                                  Georgia         stock owned by
                                                                   Ohio           Check Express,
                                                                   Texas               Inc.
</Table>

<PAGE>

<Table>
<S>                     <C>                  <C>               <C>              <C>                   <C>
    CHECK EXPRESS           Florida             None              Florida        All outstanding          None
    FINANCE, INC.                                                                shares of common
                                                                                  stock owned by
                                                                                  Check Express,
                                                                                       Inc.

 CHECK EXPRESS SOUTH        Florida            Indiana            Florida        All outstanding          None
    CAROLINA, INC.                         South Carolina         Indiana        shares of common
                                                               South Carolina     stock owned by
                                                                                  Check Express,
                                                                                       Inc.

  Check Express USA,        Florida             None              Florida        All outstanding          None
         Inc.                                                                    shares of common
                                                                                  stock owned by
                                                                                  Check Express,
                                                                                       Inc.

    CHECK-X-CHANGE         California           None            California       All outstanding          None
     CORPORATION                                                                 shares of common
                                                                                  stock owned by
                                                                                  Check Express,
                                                                                       Inc.

Q. C. & G. FINANCIAL,       Arizona             Texas             Arizona        All outstanding          None
         INC.                                 Virginia             Texas         shares of common
                                                                 Virginia         stock owned by
                                                                                     Borrower

                                                                                 All outstanding
PUBLIC CURRENCY, INC.      California        California         California       shares of common         None
                                                                                  stock owned by
                                                                                     Borrower

                                                                                  All membership
   ACE Funding, LLC         Delaware            Texas              Texas         interests owned          None
                                                                                   by Borrower
</Table>

                                       2

<PAGE>

                                SCHEDULE 3.15(c)

                              INTELLECTUAL PROPERTY

     o    See Schedule 3.06 regarding Ace Currency Exchange, Inc. v. Ace Cash
          Express, Inc.

     TRADEMARKS

<Table>
<Caption>
                                                                                                    REGISTRATION
                                                                                  APPLICATION       NUMBER/
OWNER                        TRADEMARK NAME                 JURISDICTION          STATUS            APPLICATION NO.
-----                        --------------                 ------------          ------            ---------------
<S>                          <C>                            <C>                   <C>               <C>
Ace Cash Express, Inc.       A C E AMERICA'S CASH EXPRESS   Mexico                Registered        667241

Ace Cash Express, Inc.       A A C E AMERICA'S CASH         United States of      Registered        1,831,546
                             EXPRESS and design             America

Ace Cash Express, Inc.       A A-C-E AMERICA'S CASH         Canada                Registered        TMA445484
                             EXPRESS and design

Ace Cash Express, Inc.       ACE                            United States of      Registered        2,155,964
                                                            America

Ace Cash Express, Inc.       A A C E and design             United States of      Registered        1,806,389
                                                            America

Ace Cash Express, Inc.       ACE AMERICA'S CASH EXPRESS     Texas                 Registered        052565
                             and design

Ace Cash Express, Inc.       ACE AMERICA'S CASH EXPRESS     Texas                 Registered        052564
                             and design

Ace Cash Express, Inc.       ACE CANADA'S CASH EXPRESS      Canada                Pending           Serial No.
                             and design                                                             1132776

Ace Cash Express, Inc.       AFTER ALL... IT'S YOUR MONEY!  United States of      Pending           Serial No.
                                                            America                                 76/490562

Ace Cash Express, Inc.       CASH IN ON OUR CONVENIENCE     United States of      Registered        1,846,958
                                                            America

Ace Cash Express, Inc.       CASH IN ON OUR CONVENIENCE     United States of      Registered        1,831,538
                                                            America

Ace Cash Express, Inc.       CASH IN ON OUR CONVENIENCE     United States of      Registered        2,108,173
                                                            America

Ace Cash Express, Inc.       CASH IS OUR MIDDLE NAME        United States of      Registered        2,318,222
                                                            America

Ace Cash Express, Inc.       IT'S YOUR MONEY. WHY WAIT?     United States of      Pending           Serial No.
                                                            America                                 76/491255
</Table>

<PAGE>

<Table>
<S>                          <C>                            <C>                   <C>               <C>
Check Express, Inc.          CHECK EXPRESS                  United States of      Registered        1,370,520
                                                            America

Check Express, Inc.          CHECK EXPRESS                  Canada                Registered        TMA496291

Check Express, Inc.          CHECK EXPRESS                  Mexico                Registered        482464

Check Express, Inc.          CHECK EXPRESS                  Mexico                Registered        486677

Check Express, Inc.          CHECK EXPRESS                  United States of      Pending           Serial No.
                                                            America                                 76/491366

Check Express, Inc.          CHECK EXPRESS                  United States of      Pending           Serial No.
                                                            America                                 76/490563

Check Express, Inc.          CHECK EXPRESS and design       United States of      Registered        1,476,206
                                                            America

Check Express, Inc.          CHECK EXPRESS MONEY CENTERS    Canada                Registered        TMA503892
                             and design

Check Express, Inc.          CHECK EXPRESS MONEY CENTERS    Mexico                Registered        503683
                             and design

Check Express, Inc.          CHECK EXPRESS MONEY CENTERS    Mexico                Registered        514567
                             and design

Check Express, Inc.          EXPRESS and check design       United States of      Registered        1,489,647
                                                            America

Check Express, Inc.          EXPRESS and check design       United States of      Registered        2,183,193
                                                            America

Check Express, Inc.          EXPRESS and check design       Canada                Registered        TMA532292

Check Express, Inc.          EXPRESS and check design       Mexico                Pending           Serial No.
                                                                                                    233980

Check Express, Inc.          EXPRESS and check design       Mexico                Registered        514566

Check X Change Corporation   CHECK-X-CHANGE                 United States of      Registered        1,793,853
                                                            America

Check X Change Corporation   CHECK-X-CHANGE and design      Oregon                Registered        0015726

Check X Change Corporation   X-CHANGE-CHECK-X-CHANGE and    United States of      Registered        1,374,191
                             design                         America
</Table>

                                       2
<PAGE>

     PATENT APPLICATIONS

<Table>
<Caption>
           OWNER                        TITLE              FILING DATE    APPLICATION NO.       ATTY. DOCKET NO.
           -----                        -----              -----------    ---------------       ----------------
<S>                           <C>                          <C>            <C>                   <C>

Ace Cash Express, Inc.        Automated Method and         05/09/2002       10/142,351             300003-1001
                              System for Enrollment

Ace Cash Express, Inc.        Check and Cash Dispensing    06/19/2002       10/175,584             300003-1002
                              Machine and Method
</Table>

                                        3
<PAGE>

                                SCHEDULE 3.15(d)

                      DEPOSIT ACCOUNTS AND ARMORED COURIERS

(i) Deposit Accounts of Borrower:

<Table>
<Caption>
ACCOUNT NAME                                 BANK ACCT #       BANK NAME
------------                                 -----------       ---------------
<S>                                          <C>               <C>

ARKANSAS DEP                                 89440513          BANK OF AMERICA
ARKANSAS R/I                                 89440526          BANK OF AMERICA
ARKANSAS CURR                                89440539          BANK OF AMERICA
NEW MEXICO DEP                               109650382         BANK OF AMERICA
NEW MEXICO CURR                              109650390         BANK OF AMERICA
NEW MEXICO R/I                               109650408         BANK OF AMERICA

NASHVILLE TN. DEP                            112485669         BANK OF AMERICA

NASHVILLE TN. CURR                           112485677         BANK OF AMERICA

NASHVILLE TN. R/I                            112485685         BANK OF AMERICA
WICHITA KANSAS DEP                           2861440603        BANK OF AMERICA
WICHITA KANSAS R/I                           2861440616        BANK OF AMERICA
WICHITA KANSAS CURR                          2861440629        BANK OF AMERICA

SAVANNAH GA. CURR                            3266408527        BANK OF AMERICA

SAVANNAH GA. DEP                             3266408535        BANK OF AMERICA

SAVANNAH GA. R/I                             3266408543        BANK OF AMERICA
WILMINGTON  NC. CURR                         3783622508        BANK OF AMERICA
WILMINGTON  NC. DEP                          3783622511        BANK OF AMERICA
WILMINGTON  NC. R/I                          3783622524        BANK OF AMERICA
CHARLESTON SC. CURR                          3783730461        BANK OF AMERICA
CHARLESTON SC. DEP                           3783730474        BANK OF AMERICA
CHARLESTON SC. R/I                           3783730487        BANK OF AMERICA
CAPITOL R/I                                  3783832589        BANK OF AMERICA
CAPITOL CURR                                 3783832592        BANK OF AMERICA
CAPITOL DEP                                  3783832602        BANK OF AMERICA
HUNTSVILLE CURR                              4771913193        BANK OF AMERICA
HUNTSVILLE DEP                               4771913201        BANK OF AMERICA
HUNTSVILLE R/I                               4771913219        BANK OF AMERICA
PINE BLUFF DEP                               8007072791        BANK OF AMERICA
PINE BLUFF R/I                               8007072805        BANK OF AMERICA
</Table>

<PAGE>

<Table>
<Caption>
ACCOUNT NAME                               BANK ACCT #       BANK NAME
------------                               -----------       ---------------
<S>                                        <C>               <C>
PINE BLUFF CURR                            8007072813        BANK OF AMERICA
OKLAHOMA R/I                               70108364923       BANK OF AMERICA
OKLAHOMA DEP                               70108364931       BANK OF AMERICA
OKLAHOMA CURR                              70108364958       BANK OF AMERICA
ST.LOUIS MO. DEP                           100101249510      BANK OF AMERICA
ST.LOUIS MO. CURR                          100101249529      BANK OF AMERICA
ST.LOUIS MO. R/I                           100101249537      BANK OF AMERICA

FT.WAYNE IN. CURR                          715001269599      BANK ONE
FT.WAYNE IN. DEP                           715001269615      BANK ONE
FT.WAYNE IN. R/I                           715002369607      BANK ONE

SAN / AUS DEP                              43509122128       JPMORGAN CHASE BANK
SAN / AUS R/I                              43509122144       JPMORGAN CHASE BANK
SAN / AUS CURR                             43509122151       JPMORGAN CHASE BANK
EL PASO DEP                                43509122169       JPMORGAN CHASE BANK
EL PASO R/I                                43509122177       JPMORGAN CHASE BANK
EL PASO CURR                               43509122185       JPMORGAN CHASE BANK
VALLEY DEP                                 84609288218       JPMORGAN CHASE BANK
VALLEY R/I                                 84609288226       JPMORGAN CHASE BANK
VALLEY CURR                                84609288234       JPMORGAN CHASE BANK

NEW ORLEANS DEP                            812315781         HIBERNIA NAT'L
NEW ORLEANS CURR                           812315803         HIBERNIA NAT'L
NEW ORLEANS R/I                            812315811         HIBERNIA NAT'L
LONGVIEW TX CURR                           3420000752        HIBERNIA NAT'L
LONGVIEW TX DEP                            3420000760        HIBERNIA NAT'L
</Table>

                                       2
<PAGE>

<Table>
<Caption>
ACCOUNT NAME                                 BANK ACCT #       BANK NAME
------------                                 -----------       ---------------
<S>                                          <C>               <C>
LONGVIEW TX R/I                              3420000779        HIBERNIA NAT'L

CLEVELAND OH. DEP                            3765199           NATIONAL CITY
CLEVELAND OH. CURR                           3765201           NATIONAL CITY
CLEVELAND OH. R/I                            3765228           NATIONAL CITY
INDIANAN CURR                                501912286         NATIONAL CITY
INDIANAN DEP                                 501912338         NATIONAL CITY
INDIANAN R/I                                 501912341         NATIONAL CITY
PITTSBURGH CURR                              4600658771127     NATIONAL CITY
PITTSBURGH DEP                               4600658771143     NATIONAL CITY
PITTSBURGH R/I                               4600658771151     NATIONAL CITY

HOMEWOOD AL. DEP                             301060694         REGION'S
HOMEWOOD AL. CURR                            301060708         REGION'S
HOMEWOOD AL. R/I                             301060813         REGION'S
ALBANY CURR                                  2507841006        REGION'S
ALBANY DEP                                   2507842206        REGION'S
ALBANY R/I                                   2507843406        REGION'S

CORPUS CHRISTI R/I                           1411001371        TEXAS CAPITOL
CORPUS CHRISTI DEP                           1411001678        TEXAS CAPITOL
CORPUS CHRISTI CURR                          1411001686        TEXAS CAPITOL
NO. CAROLINA DEP                             2000000566115     WACHOVIA
NO. CAROLINA R/I                             2000000566128     WACHOVIA
NO. CAROLINA CURR                            2000000566131     WACHOVIA
</Table>

                                      3
<PAGE>

<Table>
<Caption>
ACCOUNT NAME                                 BANK ACCT #       BANK NAME
------------                                 -----------       ---------------
<S>                                          <C>               <C>

ACE CollectionsTrustAcct/ALA                 2000014786923     WACHOVIA
ACE CollectionsTrustAcct/DITORE              2000014787809     WACHOVIA

SO.CAROLINA DEP                              2010000169829     WACHOVIA

SO.CAROLINA R/I                              2010000169832     WACHOVIA

SO.CAROLINA CURR                             2010000175703     WACHOVIA

VIRGINIA DEP                                 2050000054237     WACHOVIA

VIRGINIA R/I                                 2050000054240     WACHOVIA

VIRGINIA CURR                                2050000054253     WACHOVIA
GEORGIA DEP                                  2080000230403     WACHOVIA
GEORGIA R/I                                  2080000230416     WACHOVIA
GEORGIA CURR                                 2080000230429     WACHOVIA
FLORIDA DEP                                  2090001409155     WACHOVIA
FLORIDA CURR                                 2090001409168     WACHOVIA
FLORIDA R/I                                  2090001409171     WACHOVIA
                                             2090001409414     WACHOVIA

CALIFORNIA R/I                               4091219998        WELLS FARGO
CALIFORNIA DEP                               4091220004        WELLS FARGO
CALIFORNIA CURR                              4091220012        WELLS FARGO
BRYAN TX. DEP                                4122047780        WELLS FARGO
BRYAN TX. CURR                               4122049745        WELLS FARGO
BRYAN TX. R/I                                4122099898        WELLS FARGO
ACH COLLECTIONS / RETURNS                    4123473928        WELLS FARGO
CORE DATA                                    4127070845        WELLS FARGO
PHOENIX AZ. DEP                              4159500198        WELLS FARGO
PHOENIX AZ. R/I                              4159500214        WELLS FARGO
PHOENIX AZ. CURR                             4159500222        WELLS FARGO

WASHINGTON DEP                               4159662725        WELLS FARGO

WASHINGTON CURR                              4159662733        WELLS FARGO
</Table>

                                       4
<PAGE>

<Table>
<Caption>
ACCOUNT NAME                                 BANK ACCT #       BANK NAME
------------                                 -----------       ---------------
<S>                                          <C>               <C>
WASHINGTON R/I                               4159662741        WELLS FARGO
DENVER CO. CURR                              4159663293        WELLS FARGO
DENVER CO. R/I                               4159663301        WELLS FARGO
DENVER CO. DEP                               4159663319        WELLS FARGO
COLORADO SPRINGS R/I                         4159663335        WELLS FARGO
COLORADO SPRINGS CURR                        4159663343        WELLS FARGO
COLORADO SPRINGS DEP                         4159663350        WELLS FARGO
FRANCHISE REVENUE                            4159698323        WELLS FARGO
CORPORATE DEPOSIT                            4159698331        WELLS FARGO
DALLAS / FT.WORTH DEP                        4159698356        WELLS FARGO
DALLAS / FT.WORTH CURR                       4159698364        WELLS FARGO
DALLAS / FT.WORTH R/I                        4159698380        WELLS FARGO
MONEY ORDERS                                 4159698406        WELLS FARGO
HOUSTON TX. DEP                              4159698489        WELLS FARGO
HOUSTON TX. CURR                             4159698497        WELLS FARGO
HOUSTON TX. R/I                              4159698513        WELLS FARGO
INSURANCE                                    4159698521        WELLS FARGO
CONCENTRATION                                4159698539        WELLS FARGO
DEFERRED COMP.                               4159698562        WELLS FARGO
401K DEPOSIT                                 4159698570        WELLS FARGO
PORTLAND OR. DEP                             4178528691        WELLS FARGO
PORTLAND OR. R/I                             4178528709        WELLS FARGO
PORTLAND OR. CURR                            4178528717        WELLS FARGO
NEVADA CURR                                  4311262364        WELLS FARGO
NEVADA DEP                                   4311262372        WELLS FARGO
NEVADA R/I                                   4311262380        WELLS FARGO
DIRECT DEP ACCT                              4375652658        WELLS FARGO
GNB DEPOSITORY ACCT                          4375669348        WELLS FARGO
MEDICAL BENEFITS                             4375669561        WELLS FARGO
CALIFORNIA OPER                              4375687324        WELLS FARGO
LAREDO TX. CURR                              4496885856        WELLS FARGO
LAREDO TX. DEP                               4496886227        WELLS FARGO
LAREDO TX. R/I                               4496886235        WELLS FARGO
IBM CREDIT ACCOUNT                           4584708721        WELLS FARGO
CENTRAL DISBURSING ACCOUNT                   4588542456        WELLS FARGO
PAYROLL                                      4759630080        WELLS FARGO
ACCOUNTS PAYABLE OPER                        4759630098        WELLS FARGO
</Table>

                                       5
<PAGE>

(ii)     Deposit Accounts of Borrower's Subsidiaries (other than ACE Funding):

Q C & G FINANCIAL INC.                     328911240          FIRST AMERICAN

(iii)     Armored courier services that transport Collateral:

     o    Arkansas Armored Car Service, L.L.C.

     o    Armored Transport Texas, Inc. a/k/a AT Systems Southwest, Inc.

     o    Brink's Incorporated

     o    Dunbar Armored, Inc.

     o    First Star Transport

     o    Loomis Fargo & Co.

     o    MidFlorida Armored

     o    Rochester Armored Car Co., Inc.

     o    Triple D Security, Inc.

(iv)      Agreements with armored courier services that transport Collateral:

     o    Armored Car Service Agreement between Arkansas Armored Car Service,
          L.L.C. and the Borrower

     o    Armored Car Service Agreement between Armored Transport Texas, Inc.
          a/k/a AT Systems Southwest, Inc. and the Borrower

     o    Contract No. 447961 between Brink's Incorporated and the Borrower

     o    Service Contract No. 11000375 between Dunbar Armored, Inc. and the
          Borrower

     o    Armored Car Service Agreement between First Star Transport and the
          Borrower

     o    Service Agreement between Loomis Fargo & Co. and the Borrower

     o    Agreement between MidFlorida Armored and the Borrower

     o    Agreement between Rochester Armored Car Co, Inc. and the Borrower

     o    Agreement between Triple D Security, Inc. and the Borrower

                                        6
<PAGE>

                                  SCHEDULE 3.18

                                  ENVIRONMENTAL

     o    None

<PAGE>

                                  SCHEDULE 6.01

                                 EXISTING LIENS

<Table>
<Caption>
JURISDICTION          FILE DATE      SECURED PARTY             COLLATERAL
------------          ---------      -------------             ----------
<S>                   <C>            <C>                       <C>
California            4/28/97        State of California,      Tax Lien
                                     Employment
                                     Development
                                     Department
</Table>

     o    See the Letters of Credit set forth on Schedule 6.03, each of which
          may be extended, renewed or refunded, so long as the amount thereof is
          not increased.

<PAGE>

                                  SCHEDULE 6.02

                           SALE LEASEBACK TRANSACTIONS

o    The Borrower may enter into sale and lease-back transactions for any or all
     of the following properties:

          o    E. Meeting Street, North Charleston, South Carolina;

          o    2122 Cosgrove Ave., North Charleston, South Carolina;

          o    2620 Madison Ave., Indianapolis, Indiana; and

          o    3921 N. Florida Ave., Tampa, Florida

                                       1
<PAGE>

                                  SCHEDULE 6.03

                          EXISTING SECURED INDEBTEDNESS

o    The Senior Secured Notes in favor of Principal Life Insurance Company -
     which shall be paid off with the proceeds from the transactions
     contemplated by the Agreement

o    Letter of Credit No. 246595 issued by Wells Fargo for $57,585.00 to Zurich
     Insurance Corp with an expiration of 1/31/04. This letter of credit is cash
     collateralized.

o    Letter of Credit No. 359386 issued by Wells Fargo for $1,087,000.00 to
     Lumbermen's Mutual Casualty Co with an expiration of 7/18/03. This letter
     of credit is cash collateralized.

<PAGE>

                                  SCHEDULE 6.06

                           EXISTING LOANS AND ADVANCES

None

<PAGE>

                                  SCHEDULE 6.17

                              PERMITTED INVESTMENTS

o    The Borrower owns (a) 257,142.96 shares of Series A Convertible Preferred
     Stock represented by Certificate No. EP A-0003, (b) 90,000 shares of
     non-voting common stock represented by Certificate No. EP-17 and (c)
     210,000 shares of common stock represented by Certificate No. EP-18, of
     ePacific Incorporated, a Delaware corporation ("ePacific"). All of the
     capital stock of ePacific owned by the Borrower is subject to a
     Stockholders' Agreement dated as of March 30, 2000 which provides, among
     other things, that no stockholder of ePacific may effect certain sales of
     such securities without affording the other stockholders of ePacific a
     right to participate in each such sale and no party to such Stockholders'
     Agreement may assign its rights thereunder without the prior written
     consent of the other parties thereto.<PAGE>

                                                                    EXHIBIT 10.2

================================================================================

                             NOTE PURCHASE AGREEMENT

                                  BY AND AMONG

                             ACE CASH EXPRESS, INC.
                                 AS THE COMPANY

                                       AND

                   AMERICAN CAPITAL FINANCIAL SERVICES, INC.,
                                    AS AGENT

                                       AND

                          THE PURCHASERS IDENTIFIED ON
                                 ANNEX A HERETO

                                 MARCH 31, 2003

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                        <C>
ARTICLE 1 DEFINITIONS..................................................................     2

      1.1     Certain Definitions......................................................     2
      1.2     Accounting Principles....................................................    18
      1.3     Other Definitional Provisions; Construction..............................    18

ARTICLE 2 ISSUE AND SALE OF SECURITIES.................................................    18

      2.1     Authorization and Issuance of the Notes..................................    18
      2.2     Sale and Purchase........................................................    19
      2.3     The Closing..............................................................    19

ARTICLE 3 REPAYMENT OF THE NOTES.......................................................    19

      3.1     Interest Rates and Interest Payments.....................................    19
      3.2     Repayment of the Notes...................................................    20
      3.3     Optional Prepayment of Notes.............................................    21
      3.4     Notice of Optional Prepayment............................................    23
      3.5     Mandatory Prepayment.....................................................    23
      3.6     Home Office Payment......................................................    24
      3.7     Taxes....................................................................    25
      3.8     Maximum Lawful Rate......................................................    25
      3.9     Capital Adequacy.........................................................    26
      3.10    Certain Waivers..........................................................    26

ARTICLE 4 CONDITIONS...................................................................    26

      4.1     Conditions to Purchase of the Notes......................................    26

ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF THE COMPANY................................    31

      5.1     Representations and Warranties of Company................................    31
      5.2     Absolute Reliance on the Representations and Warranties..................    37

ARTICLE 6 TRANSFER OF NOTES............................................................    37

      6.1     Restricted Notes.........................................................    37
      6.2     Legends; Purchaser's Representations.....................................    38
      6.3     Transfer of Notes........................................................    38
      6.4     Replacement of Lost Notes................................................    38
      6.5     No Other Representations Affected........................................    38

ARTICLE 7 COVENANTS....................................................................    39

      7.1     Affirmative Covenants....................................................    39
      7.2     Negative Covenants.......................................................    47
      7.3     Financial Covenants......................................................    56

ARTICLE 8 EVENTS OF DEFAULT............................................................    57

      8.1     Events of Default........................................................    57
      8.2     Consequences of Event of Default.........................................    60
</TABLE>

                                        i

<PAGE>

<TABLE>
<S>                                                                                        <C>
      8.3     Security.................................................................    61

ARTICLE 9 THE AGENT....................................................................    61

      9.1     Authorization and Action.................................................    61
      9.2     Delegation of Duties.....................................................    61
      9.3     Exculpatory Provisions...................................................    61
      9.4     Reliance.................................................................    62
      9.5     Non-Reliance on Agent and Other Purchasers...............................    62
      9.6     Agent in its Individual Capacity.........................................    62
      9.7     Successor Agent..........................................................    62
      9.8     Collections and Disbursements............................................    63
      9.9     Reporting................................................................    64
      9.10    Consent of Purchasers....................................................    64
      9.11    This Article Not Applicable to Company...................................    65

ARTICLE 10 MISCELLANEOUS...............................................................    65

      10.1    Successors and Assigns...................................................    65
      10.2    Modifications and Amendments.............................................    65
      10.3    No Implied Waivers; Cumulative Remedies; Writing Required................    65
      10.4    Reimbursement of Expenses................................................    65
      10.5    Holidays.................................................................    66
      10.6    Notices..................................................................    66
      10.7    Survival.................................................................    67
      10.8    Governing Law............................................................    67
      10.9    Jurisdiction, Consent to Service of Process..............................    67
      10.10   Jury Trial Waiver........................................................    69
      10.11   Severability.............................................................    69
      10.12   Headings.................................................................    69
      10.13   Indemnity................................................................    69
      10.14   Environmental Indemnity..................................................    69
      10.15   Counterparts.............................................................    70
      10.16   Integration..............................................................    70
      10.17   Confidentiality..........................................................    70
      10.18   Subordination............................................................    71
</TABLE>

                                       ii

<PAGE>

                             NOTE PURCHASE AGREEMENT

                    $10,000,000 Aggregate Principal Amount of
              Senior Subordinated Secured Series A Notes of Company
                               Due March 31, 2006

                    $10,000,000 Aggregate Principal Amount of
              Senior Subordinated Secured Series B Notes of Company
                               Due March 31, 2008

                    $10,000,000 Aggregate Principal Amount of
              Senior Subordinated Secured Series C Notes of Company
                               Due March 31, 2009

                    $10,000,000 Aggregate Principal Amount of
              Senior Subordinated Secured Series D Notes of Company
                               Due March 31, 2010

         THIS NOTE PURCHASE AGREEMENT (this "Agreement"), dated as of March 31,
2003, is by and among ACE CASH EXPRESS, INC., a Texas corporation ("Company"),
and the purchasers that are now and hereafter at any time parties hereto and are
listed in Annex A (or any amendment or supplement thereto) attached hereto (each
a "Purchaser" and collectively, "Purchasers"), and AMERICAN CAPITAL FINANCIAL
SERVICES, INC., a Delaware corporation ("ACFS"), as administrative agent for
Purchasers (in such capacity, "Agent"). Capitalized terms used and not defined
elsewhere in this Agreement are defined in Article 1 hereof.

                                    RECITALS

         A. Company has proposed to sell (i) the Series A Notes to the
Purchasers in the aggregate principal amount of $10,000,000, (ii) the Series B
Notes to the Purchasers in the aggregate principal amount of $10,000,000, (iii)
the Series C Notes to the Purchasers in the aggregate principal amount of
$10,000,000, and (iv) the Series D Notes to the Purchasers in the aggregate
principal amount of $10,000,000, in each case for the purpose of refinancing the
Existing Term Debt and paying related transaction fees and expenses.

         NOW, THEREFORE, the parties hereto, in consideration of the premises
and their mutual covenants and agreements herein set forth and intending to be
legally bound hereby, covenant and agree as follows:

                                        1

<PAGE>

                                    ARTICLE 1

                                   DEFINITIONS

         1.1      Certain Definitions. In addition to other words and terms
defined elsewhere in this Agreement, the following words and terms have the
meanings set forth below (and such meanings are equally applicable to both the
singular and plural form of the terms defined, as the context may require):

         "ACAS" shall mean American Capital Strategies, Ltd., a Delaware
corporation.

         "Acceptable Acquisition" shall mean (i) any acquisition by the Company
of all, or substantially all of the business of, any business entity (whatever
organizational form and whether accomplished as an asset acquisition or a stock
purchase or acquisition of other forms of ownership interests) engaged in the
same business or a substantially similar line of business, but only if (a) the
purchase price of such acquisition (including the amount of Indebtedness of the
business entity or of the seller or sellers assumed in connection therewith) is
no more than $7,000,000 and (b) such business entity has either (I) positive
EBITDA for the 12 month period immediately preceding the proposed date of such
acquisition or (II) positive Restated EBITDA for the 12 month period immediately
preceding the proposed date of such acquisition (as determined by Agent and
Company), or (ii) any other acquisition approved by Required Purchasers in their
sole discretion.

         "ACE Funding" shall mean ACE Funding, LLC, a Delaware limited liability
company, and wholly-owned Subsidiary of the Company.

         "ACFS" shall mean American Capital Financial Services, Inc., a Delaware
corporation.

         "Administrative Fee" shall have the meaning assigned to such term in
Section 7.1(l) hereof.

         "Affiliate" of any Person shall mean any other Person which, directly
or indirectly, controls or is controlled by or is under common control with such
Person and, without limiting the generality of the foregoing, includes (a) any
Person which beneficially owns or holds 10% or more of any class of voting
securities of such Person or 10% or more of the equity interest in such Person,
(b) any Person of which such Person beneficially owns or holds 10% or more of
any class of voting securities or in which such Person beneficially owns or
holds 10% or more of the equity interest in such Person and (c) any director,
officer or employee of such Person. For the purposes of this definition, the
term "control" (including, with correlative meanings, the terms "controlled by"
and "under common control with"), as used with respect to any Person, means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Person, whether through the
ownership of voting securities or by contract or otherwise. Notwithstanding
anything to the contrary herein, neither Purchasers nor any of their respective
Affiliates shall be deemed to be Affiliates of the Loan Parties by virtue of the
transactions contemplated in this Agreement.

                                        2

<PAGE>

         "Agent" shall have the meaning assigned to such term in the preamble
hereto and any successor agent appointed pursuant to the terms of this
Agreement.

         "Agreement" shall mean this Note Purchase Agreement, as the same may be
amended, restated, supplemented or otherwise modified from time to time.

         "Asset Sale" shall mean any sale, transfer or other disposition of
assets by Company or any of its Subsidiaries to any Person, other than the
transfer or assignment of assets (a) by a Subsidiary of Company to Company, (b)
any Subsidiary of Company to a Guarantor or (c) any Guarantor to another
Guarantor.

         "Business" shall mean the principal business of Company as set forth in
Section 5.1(b) herein and as such shall continue to be conducted following the
purchase and sale of the Notes.

         "Business Day" shall mean any day on which banking institutions in
Texas and California are open for substantially all their banking business in
Dallas and San Francisco, provided, however, "Business Day" shall exclude (a) a
Saturday, (b) a Sunday, (c) any other legal holiday, or (d) any day on which
banks are not open for dealings in United States dollar deposits in the London
interbank market.

         "By-laws" shall mean the by-laws, partnership agreement, operating
agreement or analogous instrument governing the operations of each of the Loan
Parties, as applicable, including all amendments and supplements thereto.

         "Capital Expenditures" shall mean for any period of determination the
sum of capital expenditures and payments under Capitalized Leases of the Loan
Parties for such period determined on a Consolidated basis in accordance with
GAAP.

         "Capitalized Leases" shall mean, with respect to any Person, leases of
(or other agreements conveying the right to use) any property (whether real,
personal or mixed) by such Person as lessee that, in accordance with GAAP (as
defined in Section 1.2 hereof), either would be required to be classified and
accounted for as Capitalized Leases on a balance sheet of such Person or
otherwise be disclosed as such in a note to such balance sheet.

         "Cash Flow Coverage Ratio" shall mean, in each case, with respect to
the Company and its Consolidated Subsidiaries, (a) the total without
duplication, during the 12-month period preceding the applicable date of
determination, of (i) EBITDA, minus (ii) federal, state and local income taxes
actually paid in cash minus (iii) total capital expenditures paid in cash, minus
(iv) cash dividends paid, minus (v) treasury stock purchased, plus (vi) rent
expense, divided by (b) the total without duplication during the same specified
12 month period of (i) Interest Expense paid in cash, plus (ii) the current
portion of all Capitalized Leases, plus (iii) the current portion of all
long-term debt, plus (iv) rent expense.

         "Cash Holdings" shall mean Company's cash in the Company's stores, plus
Company's cash in the Company's depository accounts with Revolving Lenders, plus
Company's cash in the Company's depository accounts with Other Financial
Institutions, plus the amount of items of the Company in clearing at Revolving
Lenders and at Other Financial Institutions, plus cash of the Company in transit
with armored couriers.

                                        3

<PAGE>

         "CERCLA" shall mean the Comprehensive Environmental Response,
Compensation and Liability Act (42 U.S.C.Section 9601, et seq.), as amended,
and rules, regulations, standards guidelines and publications issued thereunder.

         "Certificate of Update" shall mean a Certificate signed by a
Responsible Officer of the Company which sets forth any changes during the prior
month to Schedule 5.1(v) attached hereto, any of the schedules attached to the
Intercreditor Agreement, or any of the schedules attached to the Security
Agreement.

         "Change of Control" shall mean the occurrence of any of the following:

                           (a)      any transaction or series of related
                  transactions resulting in the sale or issuance of securities
                  or any rights to securities of Company by Company representing
                  in the aggregate more than 50% of its issued and outstanding
                  voting securities, on a fully diluted basis, or any
                  transaction or series of related transactions resulting in the
                  sale, transfer, assignment or other conveyance or disposition
                  of any securities or any rights to securities of Company by
                  any holder or holders thereof representing in the aggregate
                  more than 50% of the issued and outstanding voting securities
                  of Company on a fully diluted basis and the receipt of any
                  consideration in connection therewith;

                           (b)      a merger, consolidation, reorganization,
                  recapitalization or share exchange in which the stockholders
                  of Company immediately prior to such transaction receive, in
                  exchange for securities of Company owned by them, cash,
                  property or securities of the resulting or surviving entity
                  and as a result thereof Persons who were holders of voting
                  securities of Company hold less than 50% of the capital stock,
                  calculated on a fully diluted basis, of the resulting
                  corporation entitled to vote in the election of directors;

                           (c)      a sale, transfer or other disposition for
                  value of 30% or more of the assets of the Loan Parties
                  (excluding Asset Sales permitted by Section 7.2(f) hereof), on
                  a Consolidated basis; and

                           (d)      any sale or issuance or series of sales or
                  issuances of the common stock or any other voting security (or
                  security convertible into, exchangeable for, or exercisable
                  for any other voting security) of Company within a 12-month
                  period that results in a transfer of more than 50% of the
                  issued and outstanding shares of voting stock of Company or a
                  transfer of more than 50% of the voting power of Company.

         "Charter Documents" shall mean the Articles of Incorporation,
Certificate of Incorporation, certificate of limited partnership, certificate of
limited liability company, charter or analogous organic instrument filed with
the appropriate Governmental Authorities of each of the Loan Parties, as
applicable, including all amendments and supplements thereto.

                                        4

<PAGE>

         "Closing" shall mean the closing of the purchase and sale of the Notes
pursuant to this Agreement.

         "Closing Date" shall mean the date and time for delivery and payment of
the Notes as finally determined pursuant to Section 2.3 hereof.

         "Closing Processing Fee" shall mean a fee in an amount equal to
$1,000,000 ($100,000 of which was paid by Company to ACFS on or before February
9, 2003) payable by Company to ACFS in consideration of the structuring of the
financing contemplated hereby.

         "Code" shall mean the Internal Revenue Code of 1986, as amended.

         "Collateral" shall mean all assets, tangible or intangible, real,
personal or mixed, of the Company and each of its Subsidiaries (other than ACE
Funding) including, without limitation, all Deposit Accounts in which Cash
Holdings or any Subsidiary's Cash Holdings are maintained, all Cash Holdings and
each Subsidiary's Cash Holdings, all other cash, accounts receivable,
instruments, patents, trademarks, service marks, all other intellectual
property, all software whether purchased by or developed by the Company or any
of its Subsidiaries (other than ACE Funding), general intangibles, furniture and
equipment of the Company and its Subsidiaries (other than ACE Funding), and all
partnership interest, capital stock or other Equity Interests of each Subsidiary
of the Company (other than ACE Funding), but excluding any assets held by the
Company for the benefit of non-Affiliates in which no security interest or other
Lien may be granted, the Company's interest in any Indebtedness of ACE Funding
owed to the Company, and all assets or properties of ACE Funding.

         "Collateral Agency Agreement" shall have the meaning assigned to such
term in Section 4.1(d) hereof.

         "Collateral Agent" shall have the meaning assigned to such term in the
Collateral Agency Agreement.

         "Company" shall have the meaning assigned to such term in the
introductory paragraph hereto.

         "Condition" shall mean any condition that results in or otherwise
relates to any Environmental Liabilities.

         "Consolidated" shall mean, in respect of any Person, as applied to any
financial or accounting term, such term determined on a consolidated basis in
accordance with GAAP (except as otherwise required herein) for the Person and
all consolidated Subsidiaries thereof.

         "Controlled Group" shall mean the "controlled group of corporations" as
that term is defined in Section 1563 of the Internal Revenue Code of 1986, as
amended, of which Company is a part from time to time.

         "Covered Taxes" shall have the meaning assigned to such term in Section
3.7 hereof.

                                        5

<PAGE>

         "Default" shall mean any event or condition that, but for the giving of
notice or the lapse of time, or both, would constitute an Event of Default.

         "Deferred Payment Obligations" shall mean the amount of the Company's
(or any of the Company's Subsidiaries') obligations to make payments to sellers
of either stock or assets pursuant to an Acceptable Acquisition, in periods
subsequent to the closing of such acquisition.

         "EBITDA" shall mean, for any period of determination, the sum of (a)
Net Income for the Loan Parties on a Consolidated basis, plus (b) Interest
Expense deducted in arriving at such Net Income, plus (c) federal, state and
local income taxes deducted in arriving at such Net Income, plus (d)
depreciation, amortization and other non-cash charges deducted in arriving at
such Net Income as computed and calculated in accordance with GAAP (excluding,
however, any reserves or non-cash charges relating to, or in respect of Payday
Loans or any other loan program administered by the Company or its
Subsidiaries), minus (e) extraordinary gains computed and calculated in
accordance with GAAP, plus (f) extraordinary losses computed and calculated in
accordance with GAAP.

         "Environmental Law" or "Environmental Laws" shall mean any Laws which
address, are related to or are otherwise concerned with environmental, health or
safety issues, including any Laws relating to any emissions, releases or
threatened releases or discharges of Pollutants into ambient air, surface water,
ground water or land, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport, handling, clean-up
or control of Pollutants or any exposure or impact on worker health and safety.

         "Environmental Liabilities" shall mean any obligations or liabilities
(including any claims, suits or other assertions of obligations or liabilities)
that are:

                           (a)      related to environmental, health or safety
                  issues (including on-site or off-site contamination by
                  Pollutants of surface or subsurface soil or water, and
                  occupational safety and health); and

                           (b)      based upon or related to (i) any provision
                  of past, present or future Environmental Laws (including
                  CERCLA and RCRA) or common law, or (ii) any judgment, order,
                  writ, decree, permit or injunction imposed by any court,
                  administrative agency, tribunal or otherwise.

         The term "Environmental Liabilities" includes: (a) fines, penalties,
judgments, awards, settlements, losses, damages (including foreseeable and
unforeseeable consequential damages), costs, fees (including attorney's and
consultant's fees), expenses and disbursements; (b) defense and other responses
to any administrative or judicial action (including claims, notice letters,
complaints, and other assertions of liability); and (c) financial responsibility
for (i) cleanup costs and injunctive relief, including any Removal, Remedial or
other Response actions, and natural resource damages, and (ii) any other
compliance or remedial measures.

         "Equity Interests" shall have the meaning ascribed to such term as
Section 7.2(v) hereof.

                                        6

<PAGE>

         "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
as the same may from time to time be amended, and the rules and regulations of
any governmental agency or authority, as from time to time in effect,
promulgated thereunder.

         "Event of Default" shall mean any of the events of default described in
Section 8.1 hereof.

         "Excess Cash Flow" means, for any fiscal year, the sum of the
following, (a) EBITDA for such fiscal year, minus (b) the amount equal to actual
cash Capital Expenditures incurred during such fiscal year, minus (c) cash
interest expense paid during such fiscal year, minus (d) cash taxes during such
fiscal year, minus (e) scheduled payments of principal on the Indebtedness
permitted by this Agreement actually paid in cash during such fiscal year, minus
(f) cash payments made to settle any litigation involving any Loan Party (other
than ACE Funding) (provided that the aggregate amount deducted pursuant to this
clause (f) over the term of this Agreement shall not exceed $2,500,000), minus
(g) the amount by which Loan Receivables at the end of such Fiscal Year exceeds
the amount of Loan Receivables at the end of the immediately preceding Fiscal
Year, plus (h) the amount by which Loan Receivables at the end of the
immediately preceding Fiscal Year exceeds the amount of Loan Receivables at the
end of such Fiscal Year, minus (i) the aggregate cash purchase price of all
Acceptable Acquisitions consummated in such Fiscal Year (provided that such
aggregate amount deducted pursuant to this clause (i) during any Fiscal Year
shall not exceed $2,500,000). The calculations of the amounts in clauses (g) and
(h) above shall be determined exclusive of adjustments caused by a Loan
Reduction Event.

         "Existing Term Debt" shall mean the obligations of Company pursuant to
the term loan credit facility as set forth in that certain Amended and Restated
Credit Agreement, dated as of November 9, 2000, by and among Company, Wells
Fargo Bank Texas, National Association, as agent for certain lenders party
thereto (as amended, modified or supplemented from time to time).

         "Facility Fee" shall have the meaning ascribed to such term as Section
7.1(m) hereof.

         "Financial Projections" shall have the meaning assigned to such term in
Section 5.1(c) hereof.

         "Financing Statements" shall have the meaning assigned to such term in
Section 4.1(c) hereof.

         "Fiscal Year" or "fiscal year" shall mean each twelve month period
ending on June 30 of each year.

         "Funded Debt" shall mean and include, as of any date of determination
(without duplication) (a) all obligations of the Loan Parties for borrowed
money, including but not limited to bank debt (including outstanding amounts
under the Revolving Financing), senior notes and subordinated debt, (b) all
obligations of the Loan Parties evidenced by bonds, debentures, notes or similar
instruments (excluding Deferred Payment Obligations which are unsecured and in
an amount not to exceed $2,000,000 in the aggregate outstanding at any time),
(c) all obligations of the Loan Parties upon which interest charges are
customarily paid, (d) all contingent obligations

                                        7

<PAGE>

of the Loan Parties, (e) all Capitalized Leases of the Loan Parties, and (f) all
outstanding letters of credit issued for the account of the Loan Parties, but
shall exclude all amounts owed by ACE Funding and all current accounts payable
arising in the ordinary course of business.

         "Funded Debt to EBITDA Ratio" shall mean the ratio of (i) Funded Debt
of Company, on a Consolidated basis, as of a particular Measurement Date, to
(ii) the EBITDA for the Measurement Period ending on such Measurement Date. For
purposes of this definition, the EBITDA of any Person acquired by the Loan
Parties pursuant to an Acceptable Acquisition during any period shall be
included in the Funded Debt to EBITDA Ratio on a pro forma basis for such period
(assuming the consummation of such acquisition and the incurrence or assumption
of any Indebtedness in connection therewith occurred on the first day of such
period) if (a) with respect to any such Acceptable Acquisition of such Person,
the consolidated balance sheet of such acquired Person as at the end of the
period preceding the acquisition of such Person and its consolidated
subsidiaries and the related statements of income and stockholders' equity and
of cash flows for the period in respect of which the Funded Debt to EBITDA Ratio
is to be calculated have been reported on without a qualification arising out of
the scope of the audit by independent certified public accountants of nationally
recognized standing, unless such audit requirement is waived by Agent, and (b)
if any such Acceptable Acquisition involved the incurrence of Funded Debt, the
incurrence of such Funded Debt was permitted hereunder.

         "GAAP" shall have the meaning assigned to such term in Section 1.2
hereof.

         "Goleta Agreement" shall mean that Master Loan Agency Agreement between
the Company and Goleta dated as of August 11, 1999, as in effect on the date
hereof, without giving effect to any amendment, restatement or modification
thereof.

         "Governmental Authorities" shall mean any federal, state or municipal
court or other governmental department, commission, board, bureau, agency or
instrumentality, governmental or quasi-governmental, domestic or foreign.

         "Guarantor" shall mean, individually and collectively, each Person who
guaranties the Indebtedness of the Loan Parties to the Purchasers, including,
without limitation, each Subsidiary of Company (other than ACE Funding) that is
or becomes a guarantor of the Indebtedness of the Loan Parties to the Purchasers
on or after the date hereof.

         "Guaranty" shall mean any guaranty of the payment or performance of any
Indebtedness or other obligation and any other arrangement whereby credit is
extended to one obligor on the basis of any promise of another Person, whether
that promise is expressed in terms of an obligation to pay the Indebtedness of
such obligor, or to purchase an obligation owed by such obligor, or to purchase
goods and services from such obligor pursuant to a take-or-pay contract, or to
maintain the capital, working capital, solvency or general financial condition
of such obligor, whether or not any such arrangement is reflected on the balance
sheet of such other Person, or referred to in a footnote thereto, but shall not
include endorsements of items for collection in the ordinary course of business.
For the purpose of all computations made under this Agreement, the amount of a
Guaranty in respect of any obligation shall be deemed to be equal to the maximum
aggregate amount of such obligation or, if the Guaranty is limited to less

                                        8

<PAGE>

than the full amount of such obligation, the maximum aggregate potential
liability under the terms of the Guaranty.

         "Guaranty Agreement" shall have the meaning assigned to such term in
Section 4.1(c) hereof.

         "Hedging Contract" shall mean (a) any agreement providing for options,
swaps, floors, caps, collars, forward sales or forward purchases involving
interest rates, commodities or commodity prices, equities, currencies, bonds or
indexes based on any of the foregoing, (b) any option, fixtures or forward
contract traded on an exchange, and (c) any other derivative agreement or other
similar agreement or arrangement.

         "Indebtedness" shall mean, for any Person at the time of any
determination, without duplication, all obligations, contingent or otherwise, of
such Person that, in accordance with GAAP, should be classified upon the balance
sheet of such Person as indebtedness, but in any event including: (a) all
obligations for borrowed money or with respect to deposits or advances of any
kind, (b) all obligations arising from installment purchases of property or
representing the deferred purchase price of property or services in respect of
which such Person is liable, contingently or otherwise, as obligor or otherwise
(other than trade payables and other current liabilities incurred in the
ordinary course of business on terms customary in the trade), (c) all
obligations evidenced by notes, bonds, debentures, acceptances or instruments,
or arising out of letters of credit or bankers' acceptances issued for such
Person's account (excluding current accounts payable which are not aged more
than 120 days from the billing date therefor), (d) all obligations, whether or
not assumed, secured by any Lien or payable out of the proceeds or production
from any property or assets now or hereafter owned or acquired by such Person,
(e) all obligations for which such Person is obligated pursuant to a Guaranty,
(f) the capitalized portion of lease obligations under Capitalized Leases, (g)
all obligations for which such Person is obligated pursuant to any Interest Rate
Protection Agreements or derivative agreements or arrangements, and (h) all
obligations of such Person upon which interest charges are customarily paid or
accrued. The Indebtedness of any Person shall include, but without duplication,
the Indebtedness of any other entity (including any partnership in which such
Person is a general partner) to the extent such Person is liable therefore as a
result of such Persons ownership interest in or other relationship with such
entity, except to the extent the terms of such Indebtedness provided that such
Person is not liable therefore.

         "Intellectual Property Schedule" shall have the meaning assigned to
such term in Section 5.1(q) hereof.

         "Intercreditor Agreement" shall mean that certain Intercreditor
Agreement, dated as of the date hereof, by and among the agent for the Revolving
Lenders, Travelers, Agent and the Company.

         "Interest Expense" shall mean, with respect to any Person for any
period, the interest expense of such Person during such period determined in
accordance with GAAP.

                                        9

<PAGE>

         "Interest Period" shall mean for any Note, a period of 30 day duration,
as determined in accordance with the customary practice in the applicable LIBOR
market; provided, that, no Interest Period will end after the last day of the
then-current term of this Agreement.

         "Interest Rate Protection Agreement" shall mean any interest rate swap,
interest rate cap, interest rate collar or other interest rate hedging agreement
or arrangement.

         "Investment" as applied to any Person shall mean the amount paid or
agreed to be paid or loaned, advanced or contributed to other Persons, and in
any event shall include (i) any direct or indirect purchase or other acquisition
of any notes, obligations, instruments, stock, securities or ownership interest
(including partnership interests and joint venture interests) and (ii) any
capital contribution to any other Person.

         "Key Management" shall mean Donald H. Neustadt, Jay B. Shipowitz, Joe
W. Conner and Barry M. Barron.

         "Laws" shall mean all U.S. and foreign federal, state or local
statutes, laws, rules, regulations, ordinances, codes, policies, rules of common
law, and the like, now or hereafter in effect, including any judicial or
administrative interpretations thereof, and any judicial or administrative
orders, consents, decrees or judgments.

         "Letter Agreement" shall mean the letter agreements substantially in
the forms of Exhibits F-1, F-2, and G attached hereto (or any other or similar
agreements in form and substance satisfactory to Agent, in its sole discretion).

         "LIBOR" shall mean with respect to the Interest Period for a Note, an
interest rate per annum determined by Agent to be equal to the London Interbank
Offered Rate for such period set at or about 11:00 a.m. (London time) 2 Business
Days prior to the commencement of such Interest Period for an amount
substantially equal to the then-current principal amount of such Note, with a
maturity of comparable duration to the Interest Period.

         "Lien" shall mean (a) any security interest, pledge, bailment,
mortgage, hypothecation, deed of trust, conditional sales and title retention
agreement (including any lease in the nature thereof), charge, encumbrance or
other similar arrangement or interest in real or personal property, now owned or
hereafter acquired, whether such interest is based on common law, statute or
contract, (b) in the case of securities, any purchase option, call or similar
right of a third party with respect to such securities or (c) with respect to
any asset, any other right of or arrangement with any creditor to have such
creditor's claim satisfied out of such asset or the proceeds therefrom, prior to
the general creditors of the owner thereof.

         "Litigation Schedule" shall have the meaning assigned to such term in
Section 5.1(i) hereof.

         "Loan and Servicing Agreement" shall mean that certain agreement, dated
as of December 18, 2002, by and among the Company, ACE Funding, ACE Funding
Lender, as in effect on the Closing Date, without giving effect to any
amendment, restatement or modification thereof.

                                       10

<PAGE>

         "Loan Parties" shall mean Company and its Subsidiaries. Notwithstanding
the fact that ACE Funding is defined as a Loan Party, the parties hereto hereby
acknowledge that, pursuant to Section 7.2(w), ACE Funding is neither obligated
nor liable for the Indebtedness evidenced by the Notes to the Purchasers and has
not made any covenants with, to, or for the benefit of the Purchasers.

         "Loan Receivables" shall mean, as of any date, the aggregate amount of
loan receivables (as accounted for in the Company's SEC Form 10-K most recently
filed with the SEC) of the Loan Parties solely related to Payday Loans as of
such date.

         "Loan Receivables Collection Amount" shall mean an amount equal to the
cash actually collected by the Loan Parties (using commercially reasonable
collection methods and efforts) in the 90 day period immediately following a
Loan Reduction Event with respect to all Loan Receivables which originated in
the State or States that originally gave rise to such Loan Reduction Event.

         "Loan Receivables Payment Reduction Conditions" shall mean, with
respect to any Loan Reduction Event: (a) the Company has made a mandatory
prepayment to the Agent, for the benefit of the Purchasers, due to such Loan
Reduction Event in accordance with Section 3.5(b)(iii) hereof; (b) prior to the
expiration of 730 days after the occurrence of such Loan Reduction Event, the
Loan Parties resume making Payday Loans in the State that gave rise to such Loan
Reduction Event; and (c) prior to the expiration of 180 days after the
occurrence of the events described in clause (b) above, the Loan Parties make,
and have outstanding, Payday Loans in an aggregate principal amount not less
than the Loan Receivables Prepayment Amount related to the State subject to such
Loan Reduction Event.

         "Loan Receivables Prepayment Amount" shall have the meaning assigned to
such term in Section 3.5(b)(iii) hereof.

         "Loan Reduction Event" shall mean the occurrence or imposition of a
binding ruling, decision, rulemaking, or regulation by a Governmental Authority
with regulatory or other jurisdiction over a Loan Party whereby any or all of
the Loan Parties are prohibited from making Payday Loans in a State or would be
subject to legal or administrative actions due to the continued making of Payday
Loans in a State.

         "London Interbank Offered Rate" shall mean the interest rate per annum
shown on page 3750 of the Dow Jones & Company Telerate screen or any successor
page as the composite offered rate for London interbank deposits.

         "Manage" and "Management" shall mean generation, production, handling,
distribution, processing, use, storage, treatment, operation, transportation,
recycling, reuse and/or disposal, as those terms are defined in CERCLA, RCRA and
other Environmental Laws (including as those terms are further defined,
construed, or otherwise used in rules, regulations, standards, guidelines and
publications issued pursuant to, or otherwise in implementation of, such
Environmental Laws).

         "Material Adverse Effect" shall mean (a) a material adverse effect upon
the Collateral or on the business, assets, liabilities, condition (financial or
otherwise) or prospects of (i) the

                                       11

<PAGE>

Company or (ii) the Loan Parties, taken as a whole or (b) the material
impairment of the ability of any Loan Party (other than ACE Funding) to perform
any of its obligations under any Purchase Document on a timely basis or (c) a
material impairment of (i) the validity or enforceability of the rights or
benefits available to the Agent and/or Purchasers, (ii) the Liens granted by the
Company and the Guarantors to Agent on behalf of the Purchasers or (iii) the
ability of Purchasers to enforce or collect any of the Indebtedness of the
Company or any Guarantor owed to the Purchasers pursuant to the Purchase
Documents. In determining whether any individual amount would result in a
Material Adverse Effect, notwithstanding that such event does not of itself have
such effect, a Material Adverse Effect shall be deemed to have occurred, if the
cumulative effect of such event and all other then existing events would result
in a Material Adverse Effect.

         "Measurement Date" shall have the meaning assigned to such term in
Section 7.3 hereof.

         "Measurement Period" shall mean the 12-month period ending on a
Measurement Date.

         "Money Order Agreement" shall mean that certain money order agreement
between the Company and Travelers, dated April 16, 1998, as amended, restated or
modified from time to time in accordance with the terms of this Agreement.

         "Moody's" shall have the meaning assigned to such term in Section
7.2(i) hereof.

         "Multiemployer Plan" shall mean a multiemployer plan (within the
meaning of Section 3(37) of ERISA) that is maintained for the benefit of the
employees of the Loan Parties or any member of the Controlled Group.

         "Net Cash Proceeds" shall mean:

         (a)      with respect to any Asset Sale, the aggregate cash proceeds
                  (including cash proceeds received by way of deferred payment
                  of principal pursuant to a note, installment receivable or
                  otherwise, but only as and when received) received by a Loan
                  Party pursuant to such Asset Sale, net of (i) the direct costs
                  relating to such Asset Sale (including brokerage fees, sales
                  and other commissions, legal, accounting and investment
                  banking fees, survey costs, title insurance premiums and other
                  customary fees and expenses incurred in connection therewith),
                  (ii) taxes paid or reasonably estimated by such Loan Party to
                  be payable as a result thereof (after taking into account any
                  available tax credits or deductions and any tax sharing
                  arrangements), (iii) amounts required to be applied to the
                  repayment of principal of any Indebtedness (and related
                  prepayment premiums or prepayment fees) secured by a Lien on
                  the assets subject to such Asset Sale (other than Indebtedness
                  hereunder and under the Revolving Credit Documents), (iv)
                  appropriate amounts to be provided by such Loan Party, as a
                  reserve, in accordance with GAAP, against any liabilities
                  associated with the assets sold or disposed of in such Asset
                  Sale and retained by such Loan Party, after such Asset Sale,
                  including pension and other post-employment benefit
                  liabilities and liabilities related to environmental matters
                  and liabilities under any indemnification obligation
                  associated with the assets sold or disposed of in such

                                       12

<PAGE>

                  Asset Sale (provided that, if and to the extent that such
                  reserves are no longer required to be maintained in accordance
                  with GAAP, such amounts shall constitute Net Cash Proceeds, to
                  the extent such amounts would have otherwise constituted Net
                  Cash Proceeds under this clause (a)), and (v) in the case of
                  any proceeds arising out of the sublease of any property,
                  amounts required to be paid in respect of the lease of such
                  property; and

         (b)      with respect to any issuance of equity securities or
                  Indebtedness (excluding Indebtedness under the Revolving
                  Facility), the aggregate cash proceeds received by such Loan
                  Party pursuant to such issuance, net of the direct costs
                  relating to such issuance (including sales and underwriter's
                  discounts and commissions and legal, accounting and investment
                  banking fees).

         "Net Income" shall mean, with respect to any Person for any period, the
aggregate income (or loss) of such Person for such period which shall be an
amount equal to (a) net revenues and other items of income for such Person, less
(b) the aggregate for such Person of any and all items that are treated as
expenses under GAAP, less (c) federal, state and local income taxes, but
excluding any extraordinary gains or losses or any gains or losses from the sale
or disposition of assets other than in the ordinary course of business, all
computed and calculated in accordance with GAAP.

         "Net Worth" shall mean, with respect to any Person at any date of
determination, the sum of (a) the total amount of capital stock, including
preferred stock, of such Person, plus (b) the paid-in-capital of such Person,
plus (c) the retained earnings of such Person, minus (d) the treasury stock of
such Person, all calculated in accordance with GAAP.

         "Notes" shall have the meaning set forth in Section 2.1 hereof.

         "Organizational Schedule" shall have the meaning assigned to such term
in Section 5.1(a) hereof.

         "Other Financial Institutions" shall mean any financial institution
other than Revolving Lenders.

         "Other Taxes" shall have the meaning assigned to such term in Section
3.7 hereof.

         "Payday Loan" shall mean a consumer loan with a maturity of less than
30 days provided by a Loan Party (other than ACE Funding) in exchange for which,
the borrower of such consumer loan endorses for presentment or deposit a check
for the benefit of such Loan Party or executes an authorization for such Loan
Party to debit such borrower's bank account and enters into an agreement with
such Loan Party that such Loan Party shall defer the presentment or deposit of
such check or the initiation of such debit (as the case may be) for a period of
time which shall not exceed 30 days.

         "PBGC" shall mean the Pension Benefit Guaranty Corporation established
pursuant to Subtitle A of Title IV of ERISA, or any other governmental agency,
department or instrumentality succeeding to the functions thereof.

                                       13

<PAGE>

         "Permitted Encumbrances Schedule" shall have the meaning assigned to
such term in Section 7.2(b)(iv) hereof.

         "Permitted Liens" shall have the meaning assigned to such term Section
7.2(b) hereof.

         "Person" shall mean any individual, partnership, limited partnership,
corporation, limited liability company, association, joint stock company, trust,
joint venture, unincorporated organization or governmental entity or department,
agency or political subdivision thereof.

         "Plan" shall mean any employee benefit plan (within the meaning of
Section 3(3) of ERISA), other than a Multiemployer Plan, established or
maintained by any of Company or any member of the Controlled Group.

         "Pledge Agreement" shall have the meaning assigned to such term in
Section 4.1(c) hereof.

         "Pollutant" shall include any "hazardous substance" and any "pollutant
or contaminant" as those terms are defined in CERCLA; any "hazardous waste" as
that term is defined in RCRA; and any "hazardous material" as that term is
defined in the Hazardous Materials Transportation Act (49 U.S.C. Section 1801 et
seq.), as amended (including as those terms are further defined, construed, or
otherwise used in rules, regulations, standards, guidelines and publications
issued pursuant to, or otherwise in implementation of, said Environmental Laws);
and including without limitation any petroleum product or byproduct, solvent,
flammable or explosive material, radioactive material, asbestos, polychlorinated
biphenyls (PCBs), dioxins, dibenzofurans, heavy metals, and radon gas; and
including any other substance or material that is reasonably determined to
present a threat, hazard or risk to human health or the environment.

         "Properties and Facilities" shall have the meaning assigned to such
term in Section 5.1(p) hereof.

         "Properties Schedule" shall have the meaning assigned to such term in
Section 5.1(p) hereof.

         "Proprietary Rights" shall mean all patents, trademarks, trade names,
service marks, copyrights, inventions, production methods, licenses, formulas,
know-how, trade secrets and goodwill related to any of the foregoing, regardless
of whether such are registered with any Governmental Authorities, including
applications therefor.

         "Purchase Documents" shall mean this Agreement, the Notes and the
Security Documents and all other agreements, instruments and documents delivered
in connection therewith, but excluding documentation evidencing the Revolving
Financing and the Travelers Documents, as any or all of the foregoing may be
supplemented or amended from time to time.

         "Purchaser" shall have the meaning assigned to such term in the
preamble hereto and in Section 6.2 hereof.

                                       14

<PAGE>

         "RCRA" shall mean the Resource Conservation and Recovery Act (42
U.S.C.Section 6901 et seq.), as amended, and all rules, regulations, standards,
guidelines, and publications issued thereunder.

         "Removal," "Remedial" and "Response" actions shall include the types of
activities covered by CERCLA, RCRA, and other comparable Environmental Laws, and
whether the activities are those which might be taken by a Governmental
Authority or those which a Governmental Authority or any other Person might seek
to require of waste generators, handlers, distributors, processors, users,
storers, treaters, owners, operators, transporters, recyclers, reusers,
disposers, or other Persons under "removal," "remedial," or other "response"
actions.

         "Reportable Event" shall mean any of the events which are reportable
under Section 4043 of ERISA and the regulations promulgated thereunder, other
than an occurrence for which the thirty (30) day notice contained in 29 C.F.R.
Section 2615.3(a) is waived.

         "Required Purchasers" shall mean, at any time, Purchasers holding a pro
rata percentage of the outstanding principal amount of the Notes aggregating at
least 66-2/3% at such time.

         "Responsible Officer" shall mean, with respect to any Person other than
the Company, such Person's president, chairman, senior vice president, vice
president, chief financial officer or vice president-finance and shall mean with
respect to the Company, its chief executive officer, its chief operating
officer, its chief financial officer, its senior vice president-operations, and
its controller.

         "Restated EBITDA" shall mean, with respect to any Person, such Person's
actual EBITDA (regardless if calculated pursuant to an audit conducted by
independent public accountants of recognized national standing acceptable to
Agent) restated to substitute, in lieu of actual expenses deducted in
determining such actual EBITDA, expenses that are, in the judgment of Agent and
Company, contractually controllable by Company (e.g., officer or employee
compensation, bank and/or depository fees, courier fees and other similar
expense items).

         "Revolving Credit Agreement" shall mean that certain Credit Agreement,
dated March 31, 2003, by and among Company, the lenders from time to time party
thereto, Wells Fargo Bank Texas, National Association, as administrative agent
for such lenders and co-lead arranger, and JPMorgan Chase Bank, as agent for
such lenders and co-lead arranger, as the same may be amended or modified from
time to time as permitted hereunder.

         "Revolving Credit Documents" shall mean the Revolving Credit Agreement
and all documents, instruments, certificates, and agreements contemplated
thereby or executed in connection therewith.

         "Revolving Financing" shall mean a secured revolving line of credit
facility of Company in an aggregate amount not to exceed $175,000,000.

         "Revolving Lenders" shall mean, collectively, the lenders from time to
time party to the Revolving Credit Agreement.

         "S&P" shall have the meaning assigned to such term in Section
7.2(i)(ii) hereof.

                                       15

<PAGE>

         "SEC" shall mean the Securities and Exchange Commission and any
Governmental Authority succeeding to the functions thereof.

         "Securities Act" shall mean the Securities Act of 1933, as amended.

         "Securities Exchange Act" means the Securities Exchange Act of 1934, as
amended.

         "Security Agreement" shall have the meaning assigned to such term in
Section 4.1(c) hereof.

         "Security Documents" shall mean the Security Agreement, the Pledge
Agreement, the Guaranty Agreement, the Collateral Agency Agreement, the
Financing Statements, and all other documents, instruments and other materials
now or hereafter executed or delivered by any Loan Party (other than ACE
Funding) to create or perfect a Lien in the Collateral in favor of Agent, for
the benefit of Purchasers, and all amendments, modifications, supplements,
renewals, extensions, increases, rearrangements of, and substitutions for the
foregoing.

         "Series A Notes" shall mean the Senior Subordinated Secured Series A
Notes issued pursuant to Section 2.1 hereof.

         "Series B Notes" shall mean the Senior Subordinated Secured Series B
Notes issued pursuant to Section 2.1 hereof.

         "Series C Notes" shall mean the Senior Subordinated Secured Series C
Notes issued pursuant to Section 2.1 hereof.

         "Series D Notes" shall mean the Senior Subordinated Secured Series D
Notes issued pursuant to Section 2.1 hereof.

         "Significant Asset Sale" shall have the meaning assigned to such term
in Section 3.5(b)(i)(A) hereof.

         "Significant Equity Rights Issuance" shall have the meaning assigned to
such term in Section 3.5(b)(ii)(A) hereof.

         "Significant Subsidiary" shall have the meaning given such term by 17
CFR Section 210.1-02(w) (Rule 1-02(w) of Regulation S-X of the Securities and
Exchange Commission).

         "SSM" shall mean self-service check-cashing machines.

         "State" shall mean one of the 50 States of the United States of
America, and any territory, possession or protectorate of the United States of
America.

         "Stores" shall mean the store locations of the Loan Parties that are a
portion of the Properties and Facilities.

         "Structuring Fee" shall mean a fee in an amount equal to $1,575,000
payable by the Company to ACFS in consideration of the structuring of the
financing contemplated hereby.

                                       16

<PAGE>

         "Subsidiary" shall mean, with respect to any Person, any corporation,
association or other business entity in which said Person or one or more
Subsidiaries of said Person owns or controls, directly or indirectly, securities
or other ownership interests representing more than 50% of the ordinary voting
power. As used in this Agreement with respect to the Company, the term
"Subsidiary" shall include all direct and indirect Subsidiaries of the Company.

         "Subsidiary's Cash Holdings" shall mean, with respect to a Subsidiary
of the Company, other than ACE Funding, such Subsidiary's cash in such
Subsidiary's stores, plus such Subsidiary's cash in such Subsidiary's depository
accounts with Revolving Lenders, plus such Subsidiary's cash in such
Subsidiary's depository accounts with Other Financial Institutions, plus the
amount of items of such Subsidiary in clearing at Revolving Lenders and at Other
Financial Institutions, plus cash of such Subsidiary in transit with armored
couriers.

         "Transaction Documents" shall have the meaning assigned to such term in
Section 5.1(e) hereof.

         "Transactions" shall mean the incurrence of debt and the issuance of
securities in connection therewith, as contemplated by this Agreement, the Notes
and all other agreements contemplated hereby and thereby.

         "Travelers" shall mean Travelers Express Company, Inc.

         "Travelers Documents" shall mean the Travelers Primary Agreements and
all agreements, certificates and instruments executed and/or delivered in
connection therewith.

         "Travelers Primary Agreements" shall mean the Money Order Agreement,
that certain Money Transfer Agreement dated June 30, 2000, by and between
Company and Travelers, as amended, supplemented, restated or otherwise modified
through and including the Closing Date, and that certain Bill Payment Processing
and Funds Transfer Services Agreement dated April 1, 1998, by and between
Travelers and Company, as amended, supplemented, restated or otherwise modified
through and including the Closing Date.

         "Unrestricted Indebtedness" shall mean Indebtedness (i) as to which
neither the Company nor any other Loan Party (other than ACE Funding) is
directly or primarily liable (by virtue of the Company or one of the other Loan
Parties being the primary obligor on, guarantor of, or otherwise liable with
respect to, such Indebtedness), and (ii) which, upon the occurrence of a default
with respect thereto, does not result in, or permit any holder of any
Indebtedness of the Company or any of the other Loan Parties (other than ACE
Funding) to declare a default on such Indebtedness or cause the payment thereof
to be accelerated or payable prior to its stated maturity.

         "Usage Period" shall mean shall mean the period from January 7 (or the
preceding Business Day if January 7 is not a Business Day) through April 30 (or
the next Business Day if April 30 is not a Business Day) of each calendar year.

                                       17

<PAGE>

         "UST" shall mean an underground storage tank, including as that term is
defined, construed and otherwise used in RCRA and in rules, regulations,
standards, guidelines and publications issued pursuant to RCRA and comparable
state and local laws.

         1.2      Accounting Principles. The character or amount of any asset,
liability, capital account or reserve and of any item of income or expense to be
determined, and any consolidation or other accounting computation to be made,
and the construction of any definition containing a financial term, pursuant to
this Agreement shall be determined or made in accordance with generally accepted
accounting principles in the United States of America consistently applied
("GAAP"), unless such principles are inconsistent with the express requirements
of this Agreement.

         1.3      Other Definitional Provisions; Construction. Whenever the
context so requires, neuter gender includes the masculine and feminine, the
singular number includes the plural and vice versa. The words "hereof" "herein"
and "hereunder" and words of similar import when used in this Agreement shall
refer to this Agreement as a whole and not in any particular provision of this
Agreement, and references to section, article, annex, schedule, exhibit and like
references are references to this Agreement unless otherwise specified. A
Default or Event of Default shall "continue" or be "continuing" until such
Default or Event of Default has been cured or waived by Agent and Purchasers.
References in this Agreement to any Persons shall include such Persons'
successors and permitted assigns. Other terms contained in this Agreement (which
are not otherwise specifically defined herein) shall have meanings provided in
Article 9 of the Texas Uniform Commercial Code on the date hereof to the extent
the same are used or defined therein.

                                    ARTICLE 2

                          ISSUE AND SALE OF SECURITIES

         2.1      Authorization and Issuance of the Notes. Company has duly
authorized the issuance and sale to Purchasers of (a) $10,000,000 in the
aggregate principal amount of Company's Senior Subordinated Secured Series A
Notes Due March 31, 2006, to be substantially in the form of the Note attached
hereto as Exhibit A-1 (including any Notes issued in substitution therefor
pursuant to Sections 6.3 and 6.4 hereof, the "Series A Notes"), (b) $10,000,000
in the aggregate principal amount of Company's Senior Subordinated Secured
Series B Notes Due March 31, 2008, to be substantially in the form of the Note
attached hereto as Exhibit A-2 (including any Notes issued in substitution
therefor pursuant to Sections 6.3 and 6.4 hereof, the "Series B Notes"), (c)
$10,000,000 in the aggregate principal amount of Company's Senior Subordinated
Secured Series C Notes Due March 31, 2009, substantially in the form attached
hereto as Exhibit A-3 (including any Notes issued in substitution thereof
pursuant to Sections 6.3 and 6.4 hereof, the "Series C Notes,") and (d)
$10,000,000 in the aggregate principal amount of Company's Senior Subordinated
Secured Series D Notes Due March 31, 2010, substantially in the form attached
hereto as Exhibit A-4 (including any Notes issued in substitution thereof
pursuant to Sections 6.3 and 6.4 hereof, the "Series D Notes", and together with
the Series A Notes, the Series B Notes and the Series C Notes, the "Notes").

                                       18

<PAGE>

         2.2      Sale and Purchase. Subject to the terms and conditions and in
reliance upon the representations, warranties and agreements set forth herein,
Company shall sell to Purchasers, and Purchasers shall purchase from Company, in
an amount equal to the pro rata portion of the Notes as set forth on Annex A
attached hereto, the Notes in the aggregate principal amount set forth in
Section 2.1 hereof for $40,000,000 in the aggregate.

         2.3      The Closing. Delivery of and payment for the Notes (the
"Closing") shall be made at the offices of Patton Boggs LLP, Dallas, Texas,
commencing at 10:00 a.m., local time, on March 31, 2003 or at such place or on
such other date on or before March 31, 2003 as may be mutually agreeable to
Company and Purchasers. The date and time of the Closing as finally determined
pursuant to this Section 2.3 are referred to herein as the "Closing Date."
Delivery of the Notes shall be made to Purchasers against payment of the
purchase price therefor, less the Closing Processing Fee, the Structuring Fee
and any other amounts payable pursuant to Section 4.1(h) hereof, by wire
transfer of immediately available funds in the manner agreed to by Company and
Purchasers. The Notes shall be issued in such name or names and in such
permitted denomination or denominations as set forth in Annex A or as Purchasers
may request in writing not less than two (2) Business Days before the Closing
Date.

                                    ARTICLE 3

                             REPAYMENT OF THE NOTES

         3.1      Interest Rates and Interest Payments. Company covenants and
agrees to make payments to Agent, for the ratable benefit of Purchasers, of
accrued interest on the Notes payable in arrears on the last Business Day of
each month commencing on April 30, 2003. Interest on the Notes will be computed
on the basis of a year of 360 days, composed of twelve 30-day months, and the
actual number of days elapsed. The Notes will bear interest as follows:

                           (a)      Series A Notes. The Series A Notes will bear
                  interest on the outstanding principal amount thereof at a rate
                  equal to the sum of LIBOR plus 8.0% per annum;

                           (b)      Series B Notes. The Series B Notes will bear
                  interest on the outstanding principal amount thereof at a rate
                  equal to the sum of LIBOR plus 10.0% per annum;

                           (c)      Series C Notes. The Series C Notes will bear
                  interest on the outstanding principal amount thereof at a rate
                  equal to the sum of LIBOR plus 13.0% per annum; and

                           (d)      Series D Notes. The Series D Notes will bear
                  interest on the outstanding principal amount thereof at a rate
                  equal to the sum of LIBOR plus 13.25% per annum.

Notwithstanding anything to the contrary contained herein, Agent and Purchasers
shall not be required to purchase United States dollar deposits in the London
interbank market or other

                                       19

<PAGE>

applicable LIBOR market to fund any or all of the Notes, but the provisions
hereof shall be deemed to apply as if Agent and Purchasers had purchased such
deposits to fund such Notes.

         3.2      Repayment of the Notes.

                           (a)      Company covenants and agrees to repay to
                  Agent, for the ratable benefit of Purchasers, the unpaid
                  principal balance of the Notes in full, together with all
                  accrued and unpaid interest, fees (including, without
                  limitation, any breakage or other fees related to all LIBOR
                  contracts associated therewith) and other amounts due
                  hereunder as follows:

                                    (i)      Series A Notes. On the Series A
                           Notes, in eleven (11) equal quarterly payments of
                           $833,333.34, payable on the last Business Day of each
                           calendar quarter, commencing on June 30, 2003 and one
                           (1) final payment of the principal amount as is then
                           outstanding, together with all accrued and unpaid
                           interest, fees and other amounts due hereunder on
                           March 31, 2006;

                                    (ii)     Series B Notes. On the Series B
                           Notes, the following quarterly payments shall be
                           payable on the last Business Day of each calendar
                           quarter in the following amounts for the
                           corresponding period set forth below:

<TABLE>
<CAPTION>
     Period                             Quarterly Principal Payment
-------------------                     ---------------------------
<S>                                     <C>
June 30, 2003                                     $  125,000
September 30, 2003                                $  125,000
December 31, 2003                                 $  125,000
March 31, 2004                                    $  125,000

June 30, 2004                                     $  125,000
September 30, 2004                                $  125,000
December 31, 2004                                 $  125,000
March 31, 2005                                    $  125,000

June 30, 2005                                     $  125,000
September 30, 2005                                $  125,000
December 31, 2005                                 $  125,000
March 31, 2006                                    $  125,000

June 30, 2006                                     $1,062,500
September 30, 2006                                $1,062,500
December 31, 2006                                 $1,062,500
March 31, 2007                                    $1,062,500
</TABLE>

                                       20

<PAGE>

<TABLE>
<S>                              <C>
June 30, 2007                                     $1,062,500
September 30, 2007                                $1,062,500
December 31, 2007                                 $1,062,500
March 31, 2008                   One (1) final payment of the principal amount
                                 as is then outstanding, together with all
                                 accrued and unpaid interest, fees and other
                                 amounts due hereunder.
</TABLE>

                                    (iii)    Series C Notes. On the Series C
                           Notes, on March 31, 2009; and

                                    (iv)     Series D Notes. On the Series D
                           Note, on March 31, 2010.

                           (b)      Notwithstanding anything to the contrary
                  contained in Section 3.2(a) above, on and after the date
                  following the occurrence of a Loan Reduction Event and the
                  subsequent satisfaction by the Loan Parties of all Loan
                  Receivables Payment Reduction Conditions with respect to such
                  Loan Reduction Event, (i) the remaining scheduled payments of
                  principal on the Series B Notes due after such date shall be
                  reduced by an aggregate amount equal to 50% of the Loan
                  Receivables Prepayment Amount related to such Loan Reduction
                  Event (the "Series B Loan Receivables Reduction Amount"), such
                  reduction to be applied to the remaining principal payments on
                  the Series B Notes, in order of maturity, until the aggregate
                  amount of reduced scheduled payments of principal on the
                  Series B Notes equals the Series B Loan Receivables Reduction
                  Amount, and (ii) the remaining scheduled payments of principal
                  on the Series A Notes due after such date shall be reduced by
                  an aggregate amount equal to the remaining 50% of the Loan
                  Receivables Prepayment Amount related to such Loan Reduction
                  Event (the "Series A Loan Receivables Reduction Amount"), such
                  reduction to be applied to the remaining principal payments on
                  the Series A Notes, in order of maturity, until the aggregate
                  amount of reduced scheduled payments of principal on the
                  Series A Notes equals the Series A Loan Receivables Reduction
                  Amount. For the avoidance of doubt, the parties hereto hereby
                  acknowledge and agree that nothing contained in this Section
                  3.2(b) is intended to reduce the aggregate principal amount of
                  the Series A Notes or the Series B Notes (rather, this Section
                  3.2(b) is solely intended to modify, under the circumstances
                  described above, the amortization schedule related to such
                  Notes).

         3.3      Optional Prepayment of Notes. Subject to the terms of this
Section 3.3, Company may prepay to Agent, for the ratable benefit of Purchasers,
the outstanding principal amount of the Notes in whole or in part in multiples
of $500,000, or such lesser amount as is then outstanding, at any time at a
price equal to (a) the accrued interest, if any, to the date set for prepayment,
plus (b) all breakage and other fees of LIBOR contracts associated with the
Notes being prepaid (if any), plus (c) a prepayment premium representing the
amortization of certain of Purchasers' costs incurred in connection with the
purchase of the:

                                       21

<PAGE>

         (i) Series A Notes equal to the principal amount of the Series A Note
prepaid multiplied by the following percentage:

<TABLE>
<CAPTION>
If Prepaid During the 12-Month
   Period Ending on March 31
     of the Following Year:                  Percentage
<S>                                          <C>
              2004                               1%
     2005 and thereafter                         0%
</TABLE>

         (ii) Series B Notes equal to the principal amount of the Series B Note
prepaid multiplied by the following percentage:

<TABLE>
<CAPTION>
If Prepaid During the 12-Month
   Period Ending on March 31
     of the Following Years:                 Percentage
<S>                                          <C>
              2004                               3%
              2005                               1%
     2006 and thereafter                         0%
</TABLE>

         (iii) Series C Notes equal to the principal amount of the Series C Note
prepaid multiplied by the following percentage:

<TABLE>
<CAPTION>
If Prepaid During the 12-Month
   Period Ending on March 31
     of the Following Years:                 Percentage
<S>                                          <C>
              2004                               4%
              2005                               3%
              2006                               2%
              2007                               1%
     2008 and thereafter                         0%
</TABLE>

         (iv) Series D Notes equal to the principal amount of the Series D Note
prepaid multiplied by the following percentage:

                                       22

<PAGE>

<TABLE>
<CAPTION>
If Prepaid During the 12-Month
   Period Ending on March 31
     of the Following Years:                 Percentage
<S>                                          <C>
                 2004                            5%
                 2005                            4%
                 2006                            3%
                 2007                            2%
                 2008                            1%
     2009 and thereafter                         0%
</TABLE>

All such prepayments shall be applied by Agent (w) first, to the Series B Notes,
(x) second, to the Series A Notes, (y) third, to the Series C Notes and (z)
finally, to the Series D Notes, in each case to the outstanding principal in the
inverse order of maturity after application of such prepayment to any accrued
interest, all fees associated therewith, and any prepayment premium payable in
connection therewith. Notwithstanding anything to the contrary in Sections 3.3,
3.4 and/or 3.5, no prepayment premium shall be payable in connection with a
prepayment of the Series A Notes and/or the Series B Notes, if such prepayment
is made pursuant to Section 3.5(b) or if the source of funds of such prepayment
is derived solely from the Loan Parties' Excess Cash Flow.

         3.4      Notice of Optional Prepayment. If Company shall elect to
prepay any Notes pursuant to Section 3.3 hereof, Company shall give notice of
such prepayment to Agent and each holder of the Notes to be prepaid not less
than 30 days or more than 90 days prior to the date fixed for prepayment,
specifying (a) the date on which such prepayment is to be made, (b) the
principal amount of such Notes to be prepaid on such date, and (c) the premium,
if any, and accrued interest applicable to the prepayment. Such notice shall be
accompanied by a certificate of a Responsible Officer of Company that such
prepayment is being made in compliance with Section 3.3 hereof. Notice of
prepayment having been so given, the aggregate principal amount of the Notes
specified in such notice, together with accrued interest thereon, all fees
associated therewith, and the premium, if any, shall become due and payable on
the prepayment date set forth in such notice.

         3.5      Mandatory Prepayment.

         (a)      The Notes shall be prepaid in full, together with all
interest, fees (including, without limitation, all breakage fees associated
therewith (if any) and expenses plus a prepayment premium computed in accordance
with Section 3.3 hereof, as if such prepayment was a voluntary prepayment, in
the event of a Change of Control.

         (b)      The Series A Notes and Series B Notes shall be prepaid (i)
with respect to any Asset Sales permitted by Section 7.2(f) hereof, by the
amounts specified in Section 7.2(f) (together with all interest, fees and
expenses computed in accordance with Section 3.3), as if such prepayment was a
voluntary prepayment; provided, however, that a prepayment by the Loan Parties
pursuant to this Section 3.5(b)(i) shall be made only if (A) an individual Asset
Sale results in Net Cash Proceeds to the Loan Parties in an amount in excess of
$50,000 (a "Significant Asset Sale"), or (B) in any fiscal quarter of the Loan
Parties, the Loan Parties have

                                       23

<PAGE>

consummated Assets Sales (other than Significant Asset Sales) resulting in
aggregate Net Cash Proceeds of at least $10,000 since the last prepayment
pursuant to this Section 3.5(b)(i)(B), in which case a prepayment pursuant to
this Section 3.5(b)(i)(B) shall be due and payable at the end of such fiscal
quarter in an amount equal to the aggregate amount of all such Net Cash
Proceeds; (ii) by an amount equal to the Net Cash Proceeds received by any Loan
Party (other than ACE Funding) from any and all issuances of equity (which do
not constitute a Change of Control) or Indebtedness (excluding Indebtedness
under the Revolving Facility or Indebtedness arising under the Money Order
Agreement, in the ordinary course of business) by any Loan Party (other than ACE
Funding) or all Loan Parties (other than ACE Funding), together with all
interest, fees and expenses computed in accordance with Section 3.3, as if such
prepayment was a voluntary prepayment; provided, however, that with respect to
any issuance of equity due to the exercise of stock options, warrants or other
similar rights issued to the officers, directors or employees of any Loan Party,
a prepayment by the Loan Parties pursuant to this Section 3.5(b)(ii) shall be
made only if (A) an individual issuance of equity results in Net Cash Proceeds
to the Loan Parties in an amount in excess of $50,000 (a "Significant Equity
Rights Issuance") or (B) in any fiscal quarter of the Loan Parties, the Loan
Parties have consummated issuances of equity due to the exercise of stock
options, warrants or other similar rights issued to the officers, directors or
employees of any Loan Party (other than Significant Equity Rights Issuances)
resulting in aggregate Net Cash Proceeds of at least $10,000 since the last
payment pursuant to this Section 3.5(b)(ii)(B), in which case a prepayment
pursuant to this Section 3.5(b)(ii)(B) shall be due and payable at the end of
such fiscal quarter in an amount equal to the aggregate amount of all such Net
Cash Proceeds; (iii) prior to the expiration of 91 days after the occurrence of
a Loan Reduction Event, by an amount equal to 50% of the Loan Receivables
Collection Amount (such amount, the "Loan Receivables Prepayment Amount"),
together with all interest, fees and expenses computed in accordance with
Section 3.3, as if such prepayment was a voluntary prepayment; and (iv) prior to
the expiration of 90 days after the end of each fiscal year of the Company
(commencing with the fiscal year ending on June 30, 2004), by an amount equal to
50% of the Loan Parties' Excess Cash Flow for such fiscal year (or, with respect
to the fiscal year ending June 30, 2004, the 15-month period ending on such
date) together with all interest, fees and expenses computed in accordance with
Section 3.3, as if such prepayment was a voluntary prepayment. Any and all
prepayments pursuant to this Section 3.5(b) shall be applied first, to the
Series B Notes and second, to the Series A Notes.

         (c)      Any prepayment of the Notes under Sections 3.5(a),
3.5(b)(i)(A) and 3.5(b)(ii)(A) shall be made within one (1) Business Day of the
event giving rise to the mandatory prepayment requirement.

         3.6      Home Office Payment. Company will pay all sums becoming due on
such Note for principal, premium, if any, and interest to Agent by the method
and at the address specified for such purpose in Annex A attached hereto, or by
such other method or at such other address as Purchasers shall have from time to
time specified to Company in writing for such purpose, without the presentation
or surrender of such Note or the making of any notation thereon, except that
upon written request of Company made concurrently with or reasonably promptly
after payment or prepayment in full of any Note, each holder of a Note shall
surrender such Note for cancellation, reasonably promptly after such request, to
Company at their principal executive office.

                                       24

<PAGE>

         3.7      Taxes. Any and all payments by Company hereunder or under the
Notes or other Purchase Documents that are made to or for the benefit of
Purchasers shall be made free and clear of and without deduction for any and all
present or future taxes, levies, imposts, deductions, charges or withholdings
and penalties, interests and all other liabilities with respect thereto
(collectively, "Taxes"), excluding taxes imposed on Agent's or Purchasers' net
income or capital and franchise taxes imposed on any of them by the jurisdiction
under the laws of which any of them is organized or any political subdivision
thereof (all such nonexcluded Taxes being hereinafter referred to as "Covered
Taxes"). If the Company shall be required by law to deduct any Covered Taxes
from or in respect of any sum payable hereunder or under any Notes or other
Purchase Documents to Agent for the benefit of Purchasers, or to Purchasers, the
sum payable shall be increased as may be necessary so that after making all
required deductions of Covered Taxes (including deductions of Covered Taxes
applicable to additional sums payable under this paragraph), each Purchaser
receives an amount equal to the sum it would have received had no such
deductions been made. Company shall make such deductions and Company shall pay
the full amount so deducted to the relevant taxation authority or other
authority in accordance with applicable law. In addition, Company agrees to pay
any present or future stamp, documentary, excise, privilege, intangible or
similar levies that arise at any time or from time to time from any payment made
under any and all Purchase Documents or from the execution or delivery by
Company or from the filing or recording or maintenance of, or otherwise with
respect to the exercise by Agent or Purchasers of their respective rights under
any and all Purchase Documents (collectively, "Other Taxes"). Company will
indemnify Agent and Purchasers for the full amount of Covered Taxes imposed on
or with respect to amounts payable hereunder and Other Taxes, and any liability
(including penalties, interest and expenses) arising therefrom or with respect
thereto. Payment of this indemnification shall be made within 30 days from the
date Agent or Purchasers provide Company with a certificate certifying and
setting forth in reasonable detail the calculation thereof as to the amount and
type of such Taxes. Any such certificates submitted by Agent or Purchasers in
good faith to Company shall, absent manifest error, be final, conclusive and
binding on all parties. The obligation of Company under this Section 3.7 shall
survive the payment of the Notes and the termination of this Agreement. Within
30 days after Company having received a receipt for payment of Covered Taxes
and/or Other Taxes, Company shall furnish to Agent, the original or certified
copy of a receipt evidencing payment thereof.

         3.8      Maximum Lawful Rate. This Agreement, the Notes and the other
Purchase Documents are hereby limited by this Section 3.8. In no event, whether
by reason of acceleration of the maturity of the amounts due hereunder or
otherwise, shall interest and fees contracted for, charged, received, paid or
agreed to be paid to Purchasers exceed the maximum amount permissible under such
applicable law. If, from any circumstance whatsoever, interest and fees would
otherwise be payable to Agent or Purchasers in excess of the maximum amount
permissible under such applicable law, the interest and fees shall be reduced to
the maximum amount permitted under applicable law. If from any circumstance,
Agent or Purchasers shall have received anything of value deemed interest by
applicable law in excess of the maximum lawful amount, an amount equal to any
excess of interest shall be applied to the reduction of the principal amount of
the Notes, in such manner as may be determined by Purchasers, and not to the
payment of fees or interest, or if such excessive interest exceeds the unpaid
balance of the principal amount of the Notes, such excess shall be refunded to
Company.

                                       25

<PAGE>

         3.9      Capital Adequacy. If, after the date hereof, either the
introduction of or any change of the interpretation of any law or the compliance
by Purchasers with any guideline or request from any Governmental Authority
(whether or not having the force of law) has or would have the effect of
reducing the rate of return on the capital or assets of Purchasers as a
consequence of, as determined by Agent or Purchasers in their sole discretion,
the existence of any Purchaser's obligations under this Agreement or any other
Purchase Documents, then, upon demand by Purchasers, Company immediately shall
pay to Purchasers, from the time as specified by Purchasers, additional amounts
sufficient to compensate Purchaser in light of such circumstances. The
obligations of Company under this Section 3.9 shall survive the payments of the
Notes and the termination of this Agreement.

         3.10     Certain Waivers. Company unconditionally waives (a) any rights
to presentment, demand, protest or (except as expressly required hereby) notice
of any kind, and (b) any rights of rescission, setoff, counterclaim or defense
to payment under the Notes or otherwise that Company may have or claim against
any Purchaser, the Agent or any prior Purchaser or Agent.

                                    ARTICLE 4

                                   CONDITIONS

         4.1      Conditions to Purchase of the Notes. The obligation of
Purchasers to purchase and pay for the Notes is subject to the satisfaction,
prior to or at the Closing, of the following conditions:

                           (a)      Representations and Warranties True. The
                  representations and warranties contained in Article 5 hereof
                  shall be true and correct in all material respects at and as
                  of the Closing Date as though then made, except to the extent
                  of changes caused by the transactions expressly contemplated
                  herein.

                           (b)      Material Adverse Change. There will have
                  been no material adverse change in the business or financial
                  condition of Company or the capital markets since June 30,
                  2002.

                           (c)      Security Agreement. The Loan Parties (other
                  than ACE Funding) shall have executed and delivered to Agent,
                  for the benefit of the Purchasers, (i) a security agreement or
                  security agreements granting to Agent a security interest in
                  substantially all of the assets of the Loan Parties (other
                  than ACE Funding), subordinate in lien priority only to the
                  Liens in favor of the Revolving Lenders as contemplated by the
                  Intercreditor Agreement, in each case in form and substance
                  substantially as set forth in Exhibit B attached hereto
                  (individually and collectively, as the same may be

                                       26

<PAGE>

                  amended, modified or supplemented from time to time in
                  accordance with the terms thereof, the "Security Agreement"),
                  (ii) a pledge agreement or pledge agreements granting to Agent
                  a pledge of all equity securities held by the Loan Parties
                  (other than Company's interest in ACE Funding), in each case
                  in form and substance substantially as set forth in Exhibit C
                  attached hereto (individually and collectively, as the same
                  may be amended, modified or supplemented from time to time in
                  accordance with the terms thereof, the "Pledge Agreement"),
                  and (iii) a guaranty agreement or guaranty agreements, in each
                  case in form and substance substantially as set forth in
                  Exhibit D attached hereto (individually and collectively, as
                  the same may be amended, modified or supplemented from time to
                  time in accordance with the terms thereof, the "Guaranty
                  Agreement"). The Loan Parties (other than ACE Funding) shall
                  have executed and delivered to Agent, for the benefit of the
                  Purchasers, such financing statements and other instruments
                  (collectively, "Financing Statements") as Agent shall require
                  in order to perfect and maintain the continued perfection of
                  the security interest created by the Security Documents. Agent
                  shall have received reports of filings with appropriate
                  Government Authorities showing that there are no Liens on the
                  assets of the Loan Parties (other than ACE Funding) other than
                  Permitted Liens.

                           (d)      Collateral Agency Agreement; Intercreditor
                  Agreement. Company, Wells Fargo Bank Texas, National
                  Association, as administrative agent for the Revolving
                  Lenders, JPMorgan Chase Bank, as agent for the Revolving
                  Lenders, the Agent, Travelers Express Company, Inc. and
                  Wilmington Trust Company shall have entered into the
                  Collateral Agency Agreement, in form and substance as set
                  forth on Exhibit E attached hereto (as the same may be
                  amended, modified or supplemented from time to time in
                  accordance with the terms thereof, the "Collateral Agency
                  Agreement"). Company, Wells Fargo Bank Texas, National
                  Association, as administrative agent for the Revolving
                  Lenders, JPMorgan Chase Bank, as agent for the Revolving
                  Lenders, the Agent and Travelers shall have entered into the
                  Intercreditor Agreement (as set forth in Exhibit I hereto), in
                  form and substance as the same may be amended, modified or
                  supplemented from time to time in accordance with the terms
                  thereof.

                           (e)      Environmental Reports. Agent shall have
                  received reports covering Company's properties in form and
                  substance satisfactory to Agent regarding Company's compliance
                  with Environmental Laws.

                           (f)      Senior Secured Notes. The Agent shall have
                  received evidence that the Company's 9.03% Senior Secured
                  Notes due November 15, 2003, issued to Principal Mutual Life
                  Insurance in the aggregate principal amount of $20,000,000,
                  have been paid in full and that the Liens in favor of
                  Principal Mutual Life Insurance have been either terminated or
                  assigned to an agent of the Revolving Lenders, for the benefit
                  of the Revolving Lenders.

                           (g)      Closing Documents. Company will have
                  delivered or caused to be delivered to Agent all of the
                  following documents in form and substance satisfactory to
                  Agent:

                                    (i)      the Notes (as designated by Agent
                           and Purchasers pursuant to Section 2.1 and Annex A
                           hereof) in aggregate original principal amounts as
                           set forth herein, duly completed and executed by
                           Company;

                                       27

<PAGE>

                                    (ii)     certificates of good standing dated
                           not more than 10 days prior to the Closing Date for
                           each of the Loan Parties (other than ACE Funding)
                           issued by their respective jurisdictions of
                           organization and each jurisdiction where they are
                           qualified to operate as a foreign corporation, or its
                           equivalent;

                                    (iii)    a copy of the Charter Documents of
                           each of the Loan Parties (other than ACE Funding),
                           certified by the appropriate governmental official of
                           the jurisdiction of its organization as of a date not
                           more than 10 days prior to the Closing Date;

                                    (iv)     a copy of the By-laws of each of
                           the Loan Parties (other than ACE Funding), certified
                           as of the Closing Date by the secretary, assistant
                           secretary, manager or general partner, as applicable,
                           of each respective Loan Party (other than ACE
                           Funding);

                                    (v)      a certificate of the secretary,
                           assistant secretary, manager or general partner of
                           each of the Loan Parties (other than ACE Funding),
                           certifying as to the names and true signatures of the
                           officers or other authorized person of the respective
                           Loan Party (other than ACE Funding) authorized to
                           sign this Agreement and the other documents to be
                           delivered by the respective Loan Party (other than
                           ACE Funding) hereunder;

                                    (vi)     copies of the resolutions duly
                           adopted by the each of the Loan Party's (other than
                           ACE Funding's) board of directors, general partners,
                           board of managers or other governing body,
                           authorizing the execution, delivery and performance
                           by the respective Loan Party (other than ACE Funding)
                           of this Agreement and each of the other agreements,
                           instruments and documents contemplated hereby to
                           which the respective Loan Party (other than ACE
                           Funding) is a party, and the consummation of all of
                           the other Transactions, certified as of the Closing
                           Date by the secretary, assistant secretary, manager
                           or general partner of the respective Loan Party
                           (other than ACE Funding);

                                    (vii)    a certificate dated as of the
                           Closing Date from an officer of Company stating that
                           the conditions specified in this Section 4.1 have
                           been fully satisfied or waived by Agent;

                                    (viii)   certificates of insurance
                           evidencing the existence of all insurance required to
                           be maintained by the Loan Parties (other than ACE
                           Funding) pursuant to Section 7.1(c), and Agent shall
                           be satisfied with the type and extent of such
                           coverage;

                                    (ix)     an opinion of Gardere Wynne Sewell,
                           L.L.P., counsel to Company, in form and substance
                           satisfactory to Agent;

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<PAGE>

                                    (x)      a Guaranty Agreement from each of
                           the Company's Subsidiaries (other than ACE Funding)
                           in favor of Agent, for the ratable benefit of the
                           Purchasers;

                                    (xi)     an accountant's letter from the
                           Loan Parties (other than ACE Funding) to their
                           accountants regarding their disclosure of financial
                           information to Agent and Purchasers;

                                    (xii)    a certificate regarding financial
                           statements from the president and the chief financial
                           officer of the Loan Parties (other than ACE Funding)
                           regarding the financial statements referenced
                           therein, together with the appropriate attachments;

                                    (xiii)   copies of the Company's Form 10-K
                           filed with the SEC for the period ending June 30,
                           2002 and the Company's Form 10-Q filed with the SEC
                           for the period ending September 30, 2002 and December
                           31, 2002; and

                                    (xiv)    such other documents relating to
                           the Transactions contemplated by this Agreement as
                           Agent or its special counsel may reasonably request.

                           (h)      Purchaser's Fees and Expenses.

                                    (i)      Closing Processing Fee: On the
                           Closing Date, Company shall pay the Closing
                           Processing Fee to ACFS (and Company hereby authorizes
                           Agent to deduct from the aggregate proceeds from the
                           sales of the Notes by Company, the unpaid amount of
                           such Closing Processing Fee);

                                    (ii)     Structuring Fee: On the Closing
                           Date, Company shall pay the Structuring Fee to ACFS
                           (and Company hereby authorizes Agent to deduct from
                           the aggregate proceeds from the sales of the Notes by
                           Company, the unpaid amount of such Structuring Fee);
                           and

                                    (iii)    Other Fees and Expenses. On the
                           Closing Date, Company shall have paid the fees and
                           expenses of Agent and Purchasers, payable by Company
                           pursuant to Section 10.4 hereof (and Company hereby
                           authorizes Agent to deduct from the aggregate
                           proceeds of the sale of the Notes by Company, all
                           such amounts not previously paid).

                           (i)      Legal Investment. On the Closing Date,
                  Purchasers' purchases of the Notes shall not be prohibited by
                  any applicable law, rule or regulation of any Governmental
                  Authority (including, without limitation, Regulations T, U or
                  X of the Board of Governors of the Federal Reserve System) as
                  a result of the promulgation or enactment thereof or any
                  changes therein, or change in the interpretation thereof by
                  any Governmental Authority, subsequent to the date of this
                  Agreement.

                                       29

<PAGE>

                           (j)      Proceedings. All proceedings taken or
                  required to be taken in connection with the transactions
                  contemplated hereby to be consummated at or prior to the
                  Closing and all documents incident thereto will be
                  satisfactory in form and substance to Agent and its special
                  counsel and to Purchaser and its special counsel.

                           (k)      Background Investigations. Agent shall be
                  satisfied with the results of background investigations of Key
                  Management.

                           (l)      Change of Control Agreements. Company shall
                  have delivered to Agent, a copy of each change of control
                  agreement with each member of Key Management, the terms and
                  conditions of which shall be acceptable to Agent and
                  Purchasers in their sole discretion. Company shall have
                  provided Purchaser with copies of all other agreements
                  providing compensation in any form whatsoever, including but
                  not limited to, any benefit plans, between Company and any and
                  all of their respective directors, officers or employees.

                           (m)      Consummation of Revolving Credit Documents.
                  The Revolving Credit Documents shall be concurrently executed
                  with the Purchase Documents in form and substance satisfactory
                  to Agent, in Agent's sole discretion, and Agent shall have
                  been provided certified copies of all such agreements,
                  instruments and documents delivered in connection therewith.

                           (n)      Liquidity. Company shall have available cash
                  and immediately accessible availability in an amount greater
                  than $10,000,000 under the Revolving Financing on the Closing
                  Date after giving effect to the payment of (i) prior
                  Indebtedness, (ii) funding of the Notes, (iii) all fees
                  payable to Purchasers under the terms of this Agreement and
                  the Purchase Documents and (iv) all costs and expenses arising
                  as a result of the Transactions contemplated by this
                  Agreement, and the Revolving Credit Agreement which Company is
                  party, and each Purchaser shall have received satisfactory
                  evidence thereof.

                           (o)      Waiver. Any condition specified in this
                  Section 4.1 may be waived by Agent; provided that no such
                  waiver will be effective against Agent unless it is set forth
                  in a writing executed by Agent.

                           (p)      Perfection Letters. The Company shall have
                  used its best efforts to cause (i) all financial institutions
                  at which the Loan Parties' (other than ACE Funding's) deposits
                  are maintained to have executed and delivered a Letter
                  Agreement substantially in the form of Exhibit F-1 or F-2
                  attached hereto, and Agent shall be satisfied that a
                  sufficient number of such financial institutions have executed
                  and delivered such Letter Agreements, and (ii) all armored
                  couriers that transport cash, checks or other remittances for
                  the Loan Parties (other than ACE Funding) to have executed and
                  delivered a Letter Agreement substantially in the form of
                  Exhibit G attached hereto, and Agent shall be satisfied that a
                  sufficient number of such armored couriers have executed and
                  delivered such Letter Agreements.

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<PAGE>

                           (q)      Travelers. Travelers shall have released all
                  Liens which encumber Collateral that are in its favor (or
                  included such provisions in the Intercreditor Agreement) which
                  were granted under the Money Order Agreement, and all existing
                  financing statements which relate to such Lines shall have
                  been terminated and (ii) all other Liens encumbering the
                  Collateral, other than Permitted Liens, shall have been
                  released and all existing financing statements which related
                  to such Liens shall have been terminated.

                                    ARTICLE 5

                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

         5.1      Representations and Warranties of Company. As a material
inducement to Agent and Purchasers to enter into this Agreement and purchase the
Notes, Company hereby represents and warrants to Agent and Purchasers as
follows:

                           (a)      Organization and Power. Each of the Loan
                  Parties is duly organized, validly existing and in good
                  standing under the laws of its state of organization. Each of
                  the Loan Parties has all requisite corporate or other
                  organizational power and authority and all material licenses,
                  permits, approvals and authorizations necessary to own and
                  operate its properties, to carry on its businesses as now
                  conducted and to carry out the Transactions, and is qualified
                  to do business in the jurisdictions listed on Schedule 5.1(a)
                  attached hereto (the "Organizational Schedule"), which
                  includes every jurisdiction where the failure to so qualify
                  might reasonably be expected to have a Material Adverse
                  Effect. Each of the Loan Parties has its principal place of
                  business as set forth on the "Organizational Schedule". The
                  copies of the Charter Documents and By-Laws of the Loan
                  Parties that have been furnished to Agent reflect all
                  amendments made thereto at any time prior to the date of this
                  Agreement and are correct and complete.

                           (b)      Principal Business. The Loan Parties are
                  primarily engaged in the business of providing retail
                  financial services, including, without limitation, check
                  cashing, short-term lending and ancillary services, money
                  order sales, wire transfer, bill payment and pre-paid
                  telecommunications services (the "Business").

                           (c)      Financial Statements and Financial
                  Projections.

                                    (i)      Financial Statements. Company has
                           delivered to Agent copies of Company's audited
                           Consolidated year-end financial statements for and as
                           of the end of the 3 fiscal years ended June 30, 2002
                           (the "Annual Statements"). The Annual Statements were
                           compiled from the books and records maintained by
                           Company's management, are correct and complete in all
                           material respects and fairly present the Consolidated
                           financial condition of Company as of their dates and
                           the results of

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<PAGE>

                           operations for the fiscal periods then ended and have
                           been prepared in accordance with GAAP consistently
                           applied.

                                    (ii)     Financial Projections. Company has
                           delivered to Agent financial projections of the Loan
                           Parties for the period July 1, 2002 through June 30,
                           2008 derived from various assumptions of the Loan
                           Parties' management (the "Financial Projections").
                           The Financial Projections represent a reasonable
                           range of possible results in light of the history of
                           the Business and the Loan Parties, present and
                           foreseeable conditions, reasonable assumptions, and
                           the intentions of the Loan Parties' management. The
                           Financial Projections accurately reflect the Loan
                           Parties' liabilities (in accordance with GAAP) upon
                           consummation of the transactions contemplated hereby
                           as of March 28, 2003.

                                    (iii)    Accuracy of Financial Statements.
                           Company does not have any liabilities, contingent or
                           otherwise, or forward or long-term commitments that
                           are not disclosed in the Annual Statements or in the
                           notes thereto, and except as disclosed therein there
                           are no unrealized or anticipated losses from any
                           commitments of the Loan Parties neither of which may
                           cause a Material Adverse Effect.

                           (d)      Subsidiaries. The Loan Parties do not own,
                  or hold any rights to acquire, any shares of stock or any
                  other security or interest in any other Person, and the Loan
                  Parties have no Subsidiaries, except in each case as set forth
                  on the Organizational Schedule.

                           (e)      Authorization; No Breach. The execution,
                  delivery and performance of this Agreement, the other Purchase
                  Documents, the Revolving Credit Documents and all other
                  agreements contemplated hereby and thereby to which each of
                  the Loan Parties (other than ACE Funding) is a party
                  (collectively, the "Transaction Documents"), and the
                  consummation of the Transactions have been duly authorized by
                  each of Loan Parties (other than ACE Funding). The execution
                  and delivery by each of the Loan Parties (other than ACE
                  Funding) of the Transaction Documents and the consummation of
                  the Transactions do not and will not (i) conflict with or
                  result in a breach of the terms, conditions or provisions of,
                  (ii) constitute a default under, (iii) except as created
                  pursuant to the Security Documents, result in the creation of
                  any Lien upon any of the Loan Parties' capital stock or assets
                  pursuant to, (iv) give any third party the right to accelerate
                  any obligation under, (v) result in a violation of, or (vi)
                  require any authorization, consent, approval, exemption or
                  other action by or notice (other than as required by the
                  Company's status as a public company) to any Governmental
                  Authority pursuant to, the Charter Documents of any of the
                  Loan Parties, any law, statute, rule or regulation to which
                  any of the Loan Parties is subject, or any material agreement,
                  instrument, order, judgment or decree to which any of the Loan
                  Parties is a party or to which they or their assets are
                  subject.

                                       32

<PAGE>

                           (f)      Governmental Approvals. Except as
                   specifically provided by the Transaction Documents, no
                  registration with or consent or approval of, or other action
                  by, any Governmental Authority is or will be required in
                  connection with the consummation of the Transactions by the
                  Loan Parties.

                           (g)      Enforceability. This Agreement constitutes,
                  and each of the other Transaction Documents when duly executed
                  and delivered by each of Loan Parties who are parties thereto
                  will constitute, legal, valid and binding obligations of each
                  of the Loan Parties who are the parties thereto enforceable in
                  accordance with their respective terms, except as
                  enforceability thereof may be limited by bankruptcy,
                  insolvency or other laws of general application relating to
                  the enforcement of creditors' rights.

                           (h)      No Material Adverse Change. Since June 30,
                  2002, there has been no event or occurrence that is likely to
                  have a Material Adverse Effect.

                           (i)      Litigation. Except as described in Schedule
                  5.1(i) attached hereto (the "Litigation Schedule"), there are
                  no material actions, suits or proceedings at law or in equity
                  or by or before any arbitrator or any Governmental Authority
                  now pending or, to the best knowledge of the Loan Parties'
                  management after due inquiry, threatened against or filed by
                  or affecting any of the Loan Parties or any of their directors
                  or officers or the businesses, assets or rights of any of the
                  Loan Parties. At any Purchaser's request, the Loan Parties
                  shall promptly provide Agent with a copy of all pleadings of
                  all lawsuits filed against any of the Loan Parties or any of
                  their directors or officers or the business, assets or rights
                  of any of the Loan Parties and, in the case of other actions,
                  a letter stating the nature of such suits and a copy of all
                  pleadings. None of the actions, suits or proceedings at law or
                  in equity now pending against the Loan Parties and described
                  on the Litigation Schedule, either individually or taken as a
                  whole, (i) which, if adversely determined, could reasonably be
                  expected to materially impair the ability of the Loan Parties
                  (taken as a whole) to conduct business substantially as now
                  conducted, or otherwise could reasonably be expected to have a
                  Material Adverse Effect, except as disclosed on the Litigation
                  Schedule, (ii) as to which it is probable (within the meaning
                  of Statement of Financial Accounting Standards No. 5) that
                  there will be an adverse determination, or (iii) which involve
                  any of the transactions contemplated by the Purchase Documents
                  or the Revolving Credit Documents.

                           (j)      Compliance with Laws. The Loan Parties are
                  not in violation in any material respect of any applicable
                  Law. The Loan Parties are not in default with respect to any
                  judgment, order, writ, injunction, decree, rule or regulation
                  of any Governmental Authority. The Loan Parties are not in,
                  and the consummation of the Transactions will not cause any,
                  default concerning any judgment, order, writ, injunction or
                  decree of any Governmental Authority, and there is no
                  investigation, enforcement action or regulatory action pending
                  or, to the Company's knowledge, threatened against or
                  affecting any of the Loan Parties by any Governmental
                  Authority, except as set forth on the Litigation Schedule.

                                       33

<PAGE>

                  Except as set forth in the Litigation Schedule, there is no
                  remedial or other corrective action that any of the Loan
                  Parties is required to take to remain in compliance with any
                  judgment, order, writ, injunction or decree of any
                  Governmental Authority or to maintain any material permits,
                  approvals or licenses granted by any Governmental Authority in
                  full force and effect. During the past 5 years, none of the
                  officers or directors of the Loan Parties have been convicted
                  of any felony involving moral turpitude. During the past 2
                  years, none of the officers or directors of Loan Parties have
                  been bankrupt nor an executive officer of a bankrupt company.

                           (k)      Environmental Protection. Except as
                  specified in Schedule 5.1(k) attached hereto (the
                  "Environmental Schedule") and after giving effect to the
                  Transactions: (i) the business of the Loan Parties, the
                  methods and means employed by the Loan Parties in the
                  operation thereof (including all operations and conditions at
                  or in the properties of the Loan Parties), and the assets
                  owned, leased, managed, used, controlled, held or operated by
                  the Loan Parties, comply in all material respects with all
                  applicable Environmental Laws; (ii) with respect to the
                  Properties and Facilities, and except as disclosed in the
                  Environmental Schedule, the Loan Parties have obtained,
                  possess, and are in full compliance with all permits,
                  licenses, reviews, certifications, approvals, registrations,
                  consents, and any other authorizations required under any
                  Environmental Laws; (iii) the Loan Parties have not received
                  (A) any claim or notice of violation, lien, complaint, suit,
                  order or other claim or notice to the effect that the Loan
                  Parties are or may be liable to any Person as a result of (1)
                  the environmental condition of any of their Properties or any
                  other property, or (2) the release or threatened release of
                  any Pollutant, or (B) any letter or request for information
                  under Section 104 of the CERCLA, or comparable state laws, and
                  to the best of the Loan Parties' knowledge, none of the
                  operations of the Loan Parties are the subject of any
                  investigation by a Governmental Authority evaluating whether
                  any remedial action is needed to respond to a release or
                  threatened release of any Pollutant at the Properties and
                  Facilities or at any other location, including any location to
                  which the Loan Parties have transported, or arranged for the
                  transportation of, any Pollutants with respect to the
                  Properties and Facilities; (iv) except as disclosed in the
                  Environmental Schedule, neither the Loan Parties nor any prior
                  owner or operator have incurred in the past, or are now
                  subject to, any Environmental Liabilities; (v) except as
                  disclosed in the Environmental Schedule, there are no Liens,
                  covenants, deed restrictions, notice or registration
                  requirements, or other limitations applicable to the
                  Properties and Facilities, based upon any Environmental Laws
                  or other legal obligations; (vi) there are no USTs located in,
                  at, on, or under the Properties and Facilities other than the
                  USTs identified in the Environmental Schedule as USTs; and
                  each of those USTs is in full compliance with all
                  Environmental Laws and other legal obligations; and (vii)
                  except as disclosed in the Environmental Schedule, there are
                  no PCBs, lead paint, asbestos (of any type or form), or
                  materials, articles or products containing PCBs, lead paint or
                  asbestos, located in, at, on, under, a part of, or otherwise
                  related to the Properties and Facilities (including, without
                  limitation, any building, structure, or other improvement that
                  is a part of the Properties and Facilities), and all of the

                                       34

<PAGE>

                  PCBs, lead paint, asbestos, and materials, articles and
                  products containing PCBs, lead paint or asbestos identified in
                  the Environmental Schedule are in full compliance with all
                  Environmental Laws and other legal obligations.

                           (l)      Legal Investments; Use of Proceeds. The Loan
                  Parties (other than ACE Funding) will use the proceeds from
                  the sale of the Notes to refinance the Existing Term Debt and
                  to pay related transaction fees and expenses. The Loan Parties
                  are not engaged in the business of extending credit for the
                  purpose of purchasing or carrying any "margin stock" or
                  "margin security" (within the meaning of Regulations T, U or X
                  issued by the Board of Governors of the Federal Reserve
                  System), and no proceeds of the sale of the Notes will be used
                  to purchase or carry any margin stock or margin security or to
                  extend credit to others for the purpose of purchasing or
                  carrying any margin stock or margin security.

                           (m)      Taxes. The Loan Parties have filed or caused
                  to be filed all Federal, state and local tax returns that are
                  required to be filed by it, and has paid or caused to be paid
                  all taxes shown to be due and payable on such returns or on
                  any assessments received by it, including payroll taxes.

                           (n)      Labor and Employment. The Loan Parties are,
                  and each of its Plans is, in compliance in all material
                  respects with those provisions of ERISA, the Code, the Age
                  Discrimination in Employment Act, and the regulations and
                  published interpretations thereunder which are applicable to
                  the Loan Parties or any such Plan. As of the date hereof, no
                  Reportable Event has occurred with respect to any Plan as to
                  which any of the Loan Parties are or were required to file a
                  report with the PBGC. No Plan has any material amount of
                  unfunded benefit liabilities (within the meaning of Section
                  4001(a)(18) of ERISA) or any accumulated funding deficiency
                  (within the meaning of Section 302(a)(2) of ERISA), whether or
                  not waived, and neither the Loan Parties nor any member of the
                  Controlled Group has incurred or expects to incur any material
                  withdrawal liability under Subtitle E of Title IV of ERISA to
                  a Multiemployer Plan. The Loan Parties are in compliance in
                  all material respects with all labor and employment laws,
                  rules, regulations and requirements of all applicable domestic
                  and foreign jurisdictions. There are no pending or threatened
                  labor disputes, work stoppages or strikes.

                           (o)      Investment Company Act; Public Utility
                  Holding Company Act. None of the Loan Parties is (i) an
                  "investment company" or "controlled" by an investment company
                  within the meaning of the Investment Company Act of 1940, as
                  amended, or (ii) a "holding company" or a "subsidiary company"
                  of a "holding company" or an "affiliate" of a "holding
                  company" or of a "subsidiary company" of a "holding company,"
                  within the meaning of the Public Utility Holding Company Act
                  of 1935, as amended.

                           (p)      Properties; Security Interests. The Loan
                  Parties have good and marketable title to, or valid leasehold
                  interests in, all of the material assets and properties used
                  or useful by the Loan Parties in the Business (collectively,
                  the

                                       35

<PAGE>

                  "Properties and Facilities", subject to no Liens except for
                  Permitted Liens. All of the Properties and Facilities are in
                  good repair, working order and condition (ordinary wear and
                  tear excepted) and all such assets and properties are owned by
                  the Loan Parties free and clear of all Liens except for
                  Permitted Liens. The Properties and Facilities constitute all
                  of the material assets, properties and rights of any type used
                  in or necessary for the conduct of the Business. The Security
                  Agreement creates and grants to Agent a valid and perfected
                  security interest in all the collateral thereunder, subject
                  only to Permitted Liens. All real estate owned or leased by
                  the Loan Parties is listed on Schedule 5.1(p) attached hereto
                  (the "Properties Schedule"). The Store locations are listed on
                  Schedule 5.1(p) attached hereto indicating the street address
                  of each Store.

                           (q)      Intellectual Property; Licenses. Each of the
                  Loan Parties possesses all Proprietary Rights necessary to
                  conduct the Business as heretofore conducted or as proposed to
                  be conducted by it. All Proprietary Rights registered in the
                  name of any of the Loan Parties and applications therefor
                  filed by any of the Loan Parties are listed on Schedule 5.1(q)
                  attached hereto (the "Intellectual Property Schedule"). No
                  event has occurred that permits, or after notice or lapse of
                  time or both would permit, the revocation or termination of
                  any of the foregoing, which taken in isolation or when
                  considered with all other such revocations or terminations,
                  could reasonably be expected to have a Material Adverse
                  Effect. None of the Loan Parties has any notice or knowledge
                  of any facts or any past, present or threatened occurrence
                  that could preclude or impair the Loan Parties' ability to
                  retain or obtain any authorization necessary for the operation
                  of the Business.

                           (r)      Solvency. Without regard to ACE Funding,
                  after giving effect to the Transactions, (i) the fair value of
                  the assets of the Loan Parties, at a fair valuation, will
                  exceed their debts and liabilities, subordinated, contingent
                  or otherwise, (ii) the present fair saleable value of the
                  property of the Loan Parties will be greater than the amount
                  that will be required to pay the probable liability of their
                  debts and other liabilities, whether subordinated, contingent
                  or otherwise, as such debts and other liabilities become
                  absolute and matured, (iii) the Loan Parties will be able to
                  pay their debts and liabilities, whether subordinated,
                  contingent or otherwise, as such debts and liabilities become
                  absolute and matured, and (iv) the Loan Parties will not have
                  unreasonably small capital with which to conduct the business
                  in which they are engaged as such Business is now conducted
                  and is proposed to be conducted following the Closing Date.

                           (s)      Complete Disclosure. All factual information
                  furnished by or on behalf of the Loan Parties to Agent for
                  purposes of or in connection with this Agreement or the
                  Transactions is, and all other such factual information
                  hereafter furnished by or on behalf of the Loan Parties will
                  be, true and accurate in all material respects on the date as
                  of which such information is furnished and not incomplete by
                  omitting to state any fact necessary to make such information
                  not misleading taken as a whole at such time in light of the
                  circumstances under which such information was provided.

                                       36

<PAGE>

                           (t)      Side Agreements. Neither the Loan Parties
                  nor any Affiliate of the Loan Parties, nor any director,
                  officer or employee of the Loan Parties or any of their
                  Affiliates, respectively, has entered into, as of the date
                  hereof, any material side agreement, either oral or written,
                  with any individual or business, pursuant to which the
                  director, officer, employee, Loan Parties or Affiliate agreed
                  to undertake any material obligation that would be binding on
                  a Loan Party beyond the requirements of the formal, written
                  contracts executed by any Loan Party and disclosed to
                  Purchasers and Agent herein which could be reasonably expected
                  to have an adverse effect on the Collateral or the business,
                  assets, liabilities, condition (financial or otherwise) or
                  prospects of the Loan Parties (individually or taken as a
                  whole).

                           (u)      Broker's or Finder's Commissions. No
                  broker's or finder's or placement fee or commission will be
                  payable to any broker or agent engaged by the Loan Parties or
                  any of its officers, directors or agents with respect to the
                  issue of the Notes or the transactions contemplated by this
                  Agreement, including without limitation the Transactions,
                  except for fees payable to Stephens, Inc. and to ACFS,
                  Purchasers and Agent. Company agrees to indemnify Agent and
                  Purchasers and hold them harmless from against any claim,
                  demand or liability for broker's or finder's or placement fees
                  or similar commissions, whether or not payable by the Loan
                  Parties, alleged to have been incurred in connection with such
                  transactions, other than any broker's or finder's fees payable
                  to Persons engaged by Agent or Purchasers without the
                  knowledge of the Loan Parties.

                           (v)      Schedule 5.1(v) lists (i) all Deposit
                  Accounts (as defined in the Security Agreement) maintained by
                  Company, (ii) all Deposit Accounts maintained by Company's
                  Subsidiaries (other than ACE Funding), (iii) each armored
                  courier service that transports Collateral, and (iv) all
                  agreements with armored courier services which transport
                  Collateral to which either Company or a Subsidiary of Company
                  (other than ACE Funding) is a party.

         5.2      Absolute Reliance on the Representations and Warranties. All
representations and warranties contained in this Agreement and any financial
statements, instruments, certificates, schedules or other documents delivered in
connection herewith, shall survive the execution and delivery of this Agreement,
regardless of any investigation made by Agent or Purchasers or on Agent's or
Purchasers' behalf.

                                    ARTICLE 6

                                TRANSFER OF NOTES

         6.1      Restricted Notes. Purchasers acknowledge that the Notes have
not been registered under the Securities Act and may be resold only if
registered pursuant to the provisions of the Securities Act or if an exemption
from registration is available, and that Company are not required to register
the Notes.

                                       37

<PAGE>

         6.2      Legends; Purchaser's Representations. Each of the Purchasers
hereby represents and warrants to Company that it is an "accredited investor"
within the meaning of Rule 501(a) under the Securities Act and is acquiring the
Notes for investment for its own account, with no present intention of dividing
its participation with others (except for a potential transfer or transfers of
the Notes to an Affiliate or Affiliates of Purchasers) or reselling or otherwise
distributing the same in violation of the Securities Act or any applicable state
securities laws. Company may place an appropriate legend on the Notes owned by
Purchasers concerning the restrictions set forth in this Article 6. Upon the
assignment or transfer by Purchasers or any of its successors or assignees of
all or any part of the Notes, the term "Purchaser" as used herein shall
thereafter mean, to the extent thereof, the then holder or holders of such
Notes, or portion thereof.

         6.3      Transfer of Notes. Subject to Section 6.2 hereof, a holder of
a Note may transfer such Note to a new holder, or may exchange such Note for
Notes of different denominations (but in no event of denominations of less than
$100,000 in original principal amount), by surrendering such Note to Company
duly endorsed for transfer or accompanied by a duly executed instrument of
transfer naming the new holder (or the current holder if submitted for exchange
only), together with written instructions for the issuance of one or more new
Notes specifying the respective principal amounts of each new Note and the name
of each new holder and each address therefor. Company shall simultaneously
deliver to such holder or its designee such new Notes, shall mark the
surrendered Notes as canceled and shall provide notice of such transfer to
Agent. In lieu of the foregoing procedures, a holder may assign a Note (in whole
but not in part) to a new holder by sending written notice to Company and Agent
of such assignment specifying the new holder's name and address; in such case,
Company shall promptly acknowledge such assignment in writing to both the old
and new holder. Company shall not be required to recognize any subsequent holder
of a Note unless and until Company have received reasonable assurance that all
applicable transfer taxes have been paid.

         6.4      Replacement of Lost Notes. Upon receipt of evidence reasonably
satisfactory to Company of the mutilation, destruction, loss or theft of any
Notes and the ownership thereof, Company shall, upon the written request of the
holder of such Notes, execute and deliver in replacement thereof new Notes in
the same form, in the same original principal amount and dated the same date as
the Notes so mutilated, destroyed, lost or stolen; and such Notes so mutilated,
destroyed, lost or stolen shall then be deemed no longer outstanding hereunder.
If the Notes being replaced have been mutilated, they shall be surrendered to
Company; and if such replaced Notes have been destroyed, lost or stolen, such
holder shall furnish Company with an indemnity in writing to save it harmless in
respect of such replaced Note.

         6.5      No Other Representations Affected. Nothing contained in this
Article 6 shall limit the full force or effect of any representation, agreement
or warranty made herein or in connection herewith to Purchaser.

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<PAGE>

                                    ARTICLE 7

                                    COVENANTS

         7.1      Affirmative Covenants. The Loan Parties, jointly and
severally, covenant that, so long as all or any of the principal amount of the
Notes or any interest thereon shall remain outstanding, the Loan Parties shall:

                           (a)      Existence. Do or cause to be done all things
                  necessary to preserve, renew and keep in full force and effect
                  its legal existence, except for the dissolution or other
                  cessation of existence of any Subsidiary of the Company which
                  the Company has reasonably determined to be unnecessary to the
                  conduct of the Business.

                           (b)      Businesses and Properties; Compliance with
                  Laws. At all times (i) do or cause to be done all things
                  necessary to preserve, renew and keep in full force and effect
                  the rights, licenses, registrations, permits, certifications,
                  approvals, consents, franchises, patents, copyrights,
                  trademarks and trade names, and any other authorizations which
                  may be material to the conduct of their businesses; (ii)
                  comply in all material respects with all Laws applicable to
                  the operation of such business, including but not limited to,
                  all Environmental Laws, whether now in effect or hereafter
                  enacted, (iii) take all reasonable action which may be
                  required to obtain, preserve, renew and extend all rights,
                  patents, copyrights, trademarks, tradenames, franchises,
                  registrations, certifications, approvals, consents, licenses,
                  permits and any other authorizations which may be material to
                  the operation of such business, (iv) maintain, preserve and
                  protect all property material to the conduct of such business,
                  and (v) except for obsolete or worn out equipment, keep their
                  property in good repair, working order and condition and from
                  time to time make, or cause to be made, all needful and proper
                  repairs, renewals, additions, improvements and replacements
                  thereto necessary in order that the business carried on in
                  connection therewith may be properly conducted at all times.
                  Without limitation of the foregoing, after Company obtains
                  knowledge that it does not have a license, permit, or other
                  authorization from a Governmental Authority to conduct any
                  facet of its or any of its Subsidiary's (other than ACE
                  Funding) business, Company shall (i) apply for such license,
                  permit, or other authorization within the earlier of (A) 30
                  days after Company obtains such knowledge or (B) the date
                  stated by any Governmental Authority before which Company is
                  required to apply for such license, permit, or other
                  authorization and (ii) diligently thereafter pursue the
                  obtaining of such license, permit, or other authorization.

                           (c)      Insurance. Maintain insurance required by
                  the Purchase Documents, including but not limited to: (i)
                  coverage on their insurable properties (including all
                  inventory, equipment and real property) against the perils of
                  fire, theft and burglary; (ii) public liability; (iii)
                  workers' compensation; (iv) business interruption; and (v)
                  such other risks as are customary with companies similarly
                  situated and in the same or similar business as that of the

                                       39

<PAGE>

                  Loan Parties under policies issued by financially sound and
                  reputable insurers in such amounts as are customary with
                  companies similarly situated and in the same or similar
                  business. Each of the Loan Parties (other than ACE Funding)
                  shall pay all insurance premiums payable by it and Company
                  shall deliver certificates of insurance with copies of such
                  policies to Agent. All insurance policies of the Loan Parties
                  (other than ACE Funding) shall contain endorsements, in form
                  and substance reasonably satisfactory to Agent, providing that
                  the insurance shall not be cancelable except upon 30 days
                  prior written notice to Agent. Agent, on behalf of Purchasers,
                  shall be shown as a loss payee and an additional named insured
                  party under all such insurance policies.

                           (d)      Obligations and Taxes. Pay and discharge
                  promptly when due all taxes, assessments and governmental
                  charges or levies imposed upon them or upon their income or
                  profits or in respect of their properties before the same
                  shall become delinquent or in default, as well as all lawful
                  claims for labor, materials and supplies or otherwise, which,
                  if unpaid, would give rise to Liens or charges upon such
                  properties or any part thereof; provided, however, that the
                  Loan Parties shall not be required to pay and discharge or to
                  cause to be paid and discharged any such tax, assessment,
                  charge, levy or claim so long as the validity or amount
                  thereof shall be contested in good faith by appropriate
                  proceedings and the Loan Parties shall have set aside on their
                  books adequate reserves with respect thereto.

                           (e)      Financial Statements; Reports. Furnish to
                  Agent:

                                    (i)      Annual Statements. Within 90 days
                           after the end of each fiscal year (or such earlier
                           date as the same are required to be filed with the
                           SEC under applicable law), a Consolidated and
                           consolidating balance sheet and statements of
                           operations, stockholders' equity and cash flows of
                           the Loan Parties showing the financial condition of
                           the Loan Parties as of the close of such year and the
                           results of operations during such year, all the
                           foregoing Consolidated financial statements to be
                           audited by Grant Thornton LLP or another firm of
                           independent certified public accountants of
                           recognized national standing acceptable to Agent and
                           accompanied by an opinion of such accountants without
                           material exceptions or qualifications. Additionally,
                           such financial statements shall be accompanied by a
                           certificate of such accountants (which shall not
                           contain any qualification exception or scope
                           limitation not acceptable to Agent) stating that in
                           the course of its regular audit of the Business of
                           the Loan Parties, which audit was conducted in
                           accordance with GAAP, no Default or Event of Default
                           relating to covenant compliance has come to their
                           attention, or if any Default or Event of Default
                           exists, a statement as to the nature thereof,
                           together with a copy of the Company's SEC Form 10-K
                           filed for such fiscal year.

                                    (ii)     Monthly Statements. Within 30
                           calendar days after the end of each calendar month,
                           (A) financial statements (including a balance sheet
                           and cash flow and income statements), comparable to
                           current

                                       40

<PAGE>

                           monthly financial information delivered to the
                           Company's directors, showing the financial condition
                           and results of operations of the Loan Parties as of
                           the end of each such month and for the then elapsed
                           portion of the current fiscal year, together with
                           comparisons to the corresponding periods in the
                           preceding year and the budget for such periods,
                           accompanied by a certificate of an officer of the
                           Company that such financial statements have been
                           prepared in accordance with GAAP (exclusive of
                           footnotes, year-end adjustments and similar
                           modifications for interim statements), consistently
                           applied, and setting forth in comparative form the
                           respective financial statements for the corresponding
                           date and period in the previous fiscal year and (B) a
                           report of all Asset Sales of the Loan Parties
                           consummated during such calendar month accompanied by
                           a certificate of an officer of the Company that such
                           report is true and correct in all material respects.

                                    (iii)    Format; Management Report;
                           Certificate of Compliance: Each balance sheet,
                           operations statement and cash flow statement
                           furnished to Agent or Purchasers pursuant to
                           subsections (i) and (ii) of this Section 7.1(e) will
                           be furnished by an electronic means in Excel
                           spreadsheet format containing such line items and
                           other formatting requirements as may be specified by
                           Agent. Each financial statement furnished to Agent
                           pursuant to subsections (i) and (ii) of this Section
                           7.1(e) shall be accompanied by (A) a written
                           narrative report by the management of the Loan
                           Parties explaining material developments and trends
                           in the Business and such financial statements and (B)
                           a written certificate signed by the Loan Parties'
                           chief financial officer to the effect that no Default
                           or Event of Default has occurred during the period
                           covered by such statements or, if any such Default or
                           Event of Default has occurred during such period,
                           setting forth a description of such Default or Event
                           of Default and specifying the action, if any, taken
                           by the Loan Parties to remedy the same, and a
                           compliance certificate in the form of Exhibit H
                           showing Loan Parties' compliance with the covenants
                           set forth in Section 7.3.

                                    (iv)     Accountant Reports. Promptly upon
                           the receipt thereof, copies of all reports, if any,
                           submitted to the Loan Parties by independent
                           certified public accountants in connection with each
                           annual, interim or special audit or review of the
                           financial statements of the Loan Parties made by such
                           accountants, including but not limited to, any
                           comment letter submitted by such accountants to
                           management in connection with any annual review.

                                    (v)      Projections. As soon as available,
                           but in no event later than 30 days after the
                           beginning of each fiscal year, a projection of Loan
                           Parties' balance sheet, and income, retained
                           earnings, stockholders' equity and cash flow
                           statements, respectively, for the following 5 fiscal
                           years and comparable actual and budgeted figures for
                           the current fiscal year; and

                                       41

<PAGE>

                           within 10 days after the completion of any material
                           update or amendment of any such plan or forecast, a
                           copy of such update or amendment, including a
                           description of and reasons for such update or
                           amendment. Each such projection, update or amendment
                           shall have been prepared on the basis of the Loan
                           Parties' historical financial statements and records,
                           together with the assumptions set forth in such
                           projection and that it reasonably reflects
                           expectations, after considered analysis, of the Loan
                           Parties' management as to the matters set forth
                           therein.

                                    (vi)     Public Reports. As soon as possible
                           after being made publicly available, copies of such
                           registration statements, annual periodic and other
                           reports (including, without limitation, the Company's
                           SEC Form 10-Q), and such proxy statements, financial
                           information and other information, if any, as shall
                           be filed by any Loan Party with the SEC pursuant to
                           the Securities Act or the Securities Exchange Act.

                                    (vii)    Revolving Financing Reports.
                           Promptly upon request by Agent, copies of all
                           information, notices, and reports provided to, or
                           received from, Revolving Lenders or any agent of
                           Revolving Lenders under the Revolving Credit
                           Agreement.

                                    (viii)   Certificate of Update. Within ten
                           (10) days after the end of each month, a Certificate
                           of Update.

                                    (ix)     Additional Information. Promptly,
                           from time to time, such other information regarding
                           the compliance by the Loan Parties with the terms of
                           this Agreement and the other Purchase Documents or
                           the affairs, operations or condition (financial or
                           otherwise) of the Loan Parties (other than ACE
                           Funding) as Agent or Required Purchasers may
                           reasonably request and that is capable of being
                           obtained, produced or generated by the Loan Parties
                           or of which the Loan Parties have knowledge.

                           (f)      Litigation and Other Notices. Give Agent
                  prompt written notice of the following:

                                    (i)      Orders; Injunctions. The issuance
                           by any court or Governmental Authority of any
                           injunction, order, decision or other restraint
                           prohibiting, or having the effect of prohibiting, the
                           making of any loan or invalidating, or having the
                           effect of invalidating, any provision of this
                           Agreement, any of the Notes, any other Purchase
                           Document or the second priority lien of the Agent on
                           the Collateral or the initiation of any litigation or
                           proceeding seeking any such injunction, order,
                           decision or other restraint.

                                    (ii)     Litigation. The notice, filing or
                           commencement of any action, suit or proceeding
                           against any of the Loan Parties whether at law or in
                           equity or by or before any Governmental Authority (A)
                           that is a class

                                       42

<PAGE>

                           action, (B) that could be reasonably be expected to
                           result in a settlement by any of the Loan Parties of
                           $1,000,000 or more, or (C) that, if adversely
                           determined against any of the Loan Parties, could
                           reasonably be expected to result in (1) liability of
                           the Loan Parties in an amount of $1,500,000 or more
                           or (2) a Material Adverse Effect.

                                    (iii)    Environmental Matters. (A) Any
                           release or threatened release of any Pollutant
                           required to be reported to any Federal, state or
                           local governmental or regulatory agency under any
                           applicable Environmental Laws, (B) any Removal,
                           Remedial or Response action taken by any of the Loan
                           Parties or any other person in response to any
                           Pollutant in, at, on or under, a part of or about any
                           of the Properties and Facilities, (C) any violation
                           by any of the Loan Parties of any Environmental Law,
                           in each case, that could result in a Material Adverse
                           Effect, or (D) any notice, claim or other information
                           that any of the Loan Parties might be subject to an
                           Environmental Liability.

                                    (iv)     Default. Any Default or Event of
                           Default, specifying the nature and extent thereof and
                           the action (if any) that is proposed to be taken with
                           respect thereto.

                                    (v)      Material Adverse Effect. Any
                           development in the business or affairs of any of
                           Company that could have a Material Adverse Effect.

                                    (vi)     Board Meetings. Each regular or
                           special meeting of each Loan Party's board of
                           directors (but excluding actions taken by unanimous
                           written consent of such board of directors)
                           concurrently when delivered to such board of
                           directors, but in any case such notice shall be
                           delivered no later than the date on which the members
                           of the board of directors are notified of such
                           meeting.

                                    (vii)    Asset Sales. Each Asset Sale giving
                           rise to an obligation to make a prepayment in
                           accordance with Section 3.5(b)(i) hereof.

                           (g)      ERISA. Comply in all material respects with
                  the applicable provisions of ERISA and the provisions of the
                  Code relating thereto and furnish to Agent and if so requested
                  in writing, Purchasers (i) as soon as possible, and in any
                  event within thirty (30) days after the Loan Parties know or
                  have reason to know thereof, notice of (A) the establishment
                  by the Loan Parties of any Plan, (B) the commencement by the
                  Loan Parties of contributions to a Multiemployer Plan, (C) any
                  failure by the Loan Parties or any of their ERISA Affiliates
                  to make contributions required by Section 302 of ERISA
                  (whether or not such requirement is waived pursuant to Section
                  303 of ERISA), or (D) the occurrence of any Reportable Event
                  with respect to any Plan or Multiemployer Plan for which the
                  reporting requirement is not waived, together with a statement
                  of a Responsible Officer setting forth details as to such
                  Reportable Event and the action which the Loan Parties propose
                  to take with respect thereto, together with a copy of the

                                       43

<PAGE>

                  notice of such Reportable Event given to the PBGC if any such
                  notice was provided by the Loan Parties, (ii) promptly after
                  receipt thereof, a copy of any notice the Loan Parties may
                  receive from the PBGC relating to the intention of the PBGC to
                  terminate any Plan or Multiemployer Plan, or to appoint a
                  trustee to administer any Plan or Multiemployer Plan, and
                  (iii) promptly after receipt thereof, a copy of any notice of
                  withdrawal liability from any Multiemployer Plan.

                           (h)      Maintaining Records; Access to Premises and
                  Inspections. Maintain financial records in accordance with
                  generally accepted practices and, upon reasonable prior
                  written notice, at all reasonable times and as often as Agent
                  or any Purchasers may reasonably request (and at any time
                  regardless of notice after the occurrence and during the
                  continuation of a Default or Event of Default), permit any
                  authorized representative designated by Agent to visit, verify
                  and inspect the Collateral, properties and financial records
                  of the Loan Parties and to make extracts from such financial
                  records, all at the Loan Parties' expense, up to one (1) time
                  annually (or upon the occurrence and during the continuance of
                  an Event of Default, as often as the Agent may request), and
                  permit any authorized representative designated by Agent or
                  any Purchasers to discuss the affairs, finances and conditions
                  of the Loan Parties with the Loan Parties' chief financial
                  officer and such other officers as the Loan Parties shall deem
                  appropriate, and the Loan Parties' independent public
                  accountants.

                           (i)      Board of Directors. Each of the Loan Parties
                  shall, (i) within 5 Business Days after any meeting of any
                  Loan Party's board of directors or any committee thereof
                  (including, without limitation, any audit committee meeting or
                  executive committee), provide to Agent the agenda for each
                  such meeting, (ii) promptly provide to Agent any and all
                  reports, documents or other materials prepared by management
                  for, and discussed at, any regular or special meeting of any
                  Loan Party's board of directors, and (iii) within 10 Business
                  Days after Agent's request, arrange for a meeting between (x)
                  Agent and any members of senior management of the Loan Parties
                  acceptable to Agent, in its reasonable discretion, or (y)
                  Agent and any directors of the Loan Parties acceptable to
                  Agent, in its reasonable discretion, but only if necessary to
                  provide Agent with information regarding any committee meeting
                  at which no member of senior management of the Loan Parties
                  was present, in each case for purposes of discussing any
                  matters included on any agenda described in clause (i) above
                  (and, if requested by Agent, the Loan Parties shall furnish to
                  Agent at such meeting copies of all reports, documents and
                  other materials prepared for and discussed at any meeting of
                  any committee of any Loan Party's board of directors).

                           (j)      Interest Rate Hedging. From and after July
                  1, 2003, cause an amount equal to or greater than the
                  Acceptable Sum to (i) bear interest at a fixed rate or (ii) be
                  subject to a Hedging Contract that is an Acceptable Hedging
                  Contract, each for a minimum term of one year. As used herein,
                  "Acceptable Hedging Contract" shall mean a Hedging Contract
                  entered into by the Loan Parties (other than ACE Funding) with
                  the purpose and effect of fixing interest

                                       44

<PAGE>

                  rates on a principal amount of Indebtedness of such Person
                  that is accruing interest at a variable rate, provided that
                  (i) the aggregate notional amount of such Hedging Contract
                  never exceeds 100% of the anticipated outstanding principal
                  amount of the Indebtedness to be hedged by such Hedging
                  Contract or an average of such principal balances calculated
                  using a generally accepted method of matching interest swap
                  contracts to declining principal balances, (ii) the floating
                  rate index of such Hedging Contract generally matches the
                  index used to determine the floating rates of interest on the
                  corresponding indebtedness to be hedged by such Hedging
                  Contract, and (iii) each such Hedging Contract is with a
                  counterparty or has a guarantor of the obligation of the
                  counterparty which (unless such counterparty is a Revolving
                  Lender or an Affiliate of a Revolving Lender) at the time such
                  Hedging Contract is made has long-term unsecured and
                  unenhanced debt obligations rated AA or Aa2 (or their
                  equivalents) or better or is an investment-grade industry
                  participant or otherwise acceptable to Required Purchasers. As
                  used herein, "Acceptable Sum" shall mean, as of any date of
                  determination, the sum of $60,000,000, plus 50% of the then
                  outstanding aggregate principal amount of the Notes.

                           (k)      Further Assurances. The Loan Parties (other
                  than ACE Funding) will, with reasonable promptness, execute
                  and deliver to each Purchaser, from time to time, upon the
                  reasonable request of such Purchaser, supplemental agreements,
                  statements, assignments and transfers, or instructions or
                  documents as any Purchaser may request in order that the full
                  intent of this Agreement and the other Transaction Documents
                  may be carried into effect.

                           (l)      Administrative Fee. Pay an administrative
                  fee (the "Administrative Fee") to ACFS equal to $300,000 per
                  annum, payable in equal quarterly payments, commencing on June
                  30, 2006, and on each September 30, December 31, March 31 and
                  June 30 thereafter until the Notes are repaid in full in cash;
                  provided, however, such administrative fee shall be reduced
                  (i) upon the repayment in full in cash of the principal amount
                  of the Series A Notes (including all accrued interest, all
                  applicable related fees and prepayment premium, if any), to
                  $270,000 per annum, (ii) upon the repayment in full in cash of
                  the principal amount of the Series B Notes (including all
                  accrued interest, all applicable related fees and prepayment
                  premium, if any), to $225,000 per annum, (iii) upon the
                  repayment in full in cash of the principal amount of the
                  Series C Notes (including all accrued interest, all applicable
                  related fees and prepayment premium, if any), to $120,000 per
                  annum, and (iv) upon the repayment in full in cash of the
                  principal amount of the Series D Notes (including all accrued
                  interest, all applicable related fees and prepayment premium,
                  if any), to $0 per annum. The adjusted annual payments due
                  pursuant to clauses (i), (ii), (iii) and (iv) above will be
                  adjusted upon the date the applicable payment is made by
                  Company and the subsequent quarterly payments shall be reduced
                  to reflect such payment and the reduced amount then owing.

                           (m)      Facility Fee. Pay a facility fee (the
                  "Facility Fee") to ACFS equal to $425,000 per annum, payable
                  in equally monthly payments in arrears,

                                       45

<PAGE>

                  commencing on April 30, 2006, and continuing on the last
                  Business Day of each calendar month thereafter until the
                  Series D Notes are repaid in full in cash. Upon repayment, in
                  full and in cash, of the Series C Notes, the Facility Fee
                  shall be reduced to $300,000 per annum. The adjusted annual
                  payments due will be adjusted upon the date the Series C Notes
                  are repaid, in full in cash, and the subsequent monthly
                  payments shall be reduced to reflect such payment and the
                  reduced amount then owing.

                           (n)      Additional Guarantors and Pledge of Assets.
                  Inform the Agent within 5 Business Days before the creation or
                  acquisition of any direct or indirect Subsidiary. The Company
                  and the Purchasers intend that any such newly formed or
                  acquired Subsidiary of the Company shall obtain the benefit of
                  the Notes and shall become a Guarantor pursuant to terms
                  similar to each Guarantor on the date hereof. Within 15
                  Business Days from the acquisition or formation of any such
                  additional Subsidiary, the Company shall cause such Subsidiary
                  (i) to promptly execute, in form and substance satisfactory to
                  the Agent, all documents necessary for such Subsidiary to
                  become a Guarantor hereunder (including a Guaranty Agreement
                  substantially in the form executed by the Guarantors as of the
                  Closing Date), and (ii) to effect such Subsidiary's conveyance
                  of a Lien in its assets (subject only to Permitted Liens) in
                  favor of the Agent for the benefit of the Purchasers pursuant
                  to the Security Documents (but only if, with respect to this
                  clause (ii), such Subsidiary is a Significant Subsidiary). Any
                  such additional Significant Subsidiary's assets shall
                  thereupon become part of the Collateral. In addition, within
                  15 Business Days from the acquisition or formation of any
                  additional Subsidiary of the Company, the Company shall
                  execute, or shall cause its Subsidiary to execute, as
                  applicable, all documents (including a Pledge Agreement in
                  form and content substantially similar to other Pledge
                  Agreements executed in connection with the Revolving Credit
                  Agreement) necessary to effect the Company's or such
                  Subsidiary's, as applicable, conveyance of a second priority
                  Lien in the capital stock of such additional Subsidiary in
                  favor of Agent for the benefit of the Purchasers, and such
                  additional Subsidiary's capital stock shall thereupon become
                  part of the Collateral. If reasonably requested by the Agent,
                  the Company shall cause its legal counsel to deliver to the
                  Agent, simultaneously with the Purchase Documents referred to
                  in this Section 7.1(n), a legal opinion containing opinions
                  reasonably requested by the Agent with respect to, if
                  applicable, (U) the stock or asset acquisition, (V) the
                  formation of such Subsidiary, (W) the pledge of such
                  Subsidiary's capital stock to the Agent, (W) the pledge of
                  acquired assets to the Agent and the perfection of the Agent's
                  security interest therein, (Y) the addition of such Subsidiary
                  as a Guarantor, and (Z) such other matters reasonably related
                  thereto; such legal opinion to be in form and substance
                  satisfactory to the Agent.

                           (o)      Assignment of Leases. At the request of
                  Required Purchasers, or after the occurrence of an Event of
                  Default at the request of Agent, promptly execute and deliver,
                  in form and substance satisfactory to Agent, assignments of
                  leases and/or leasehold deeds of trust with respect to any
                  real property leases of office space or real property leases
                  covering any of the Loan Parties' (other than

                                       46

<PAGE>

                  ACE Funding) stores; provided, however, that Loan Parties
                  shall not be required to deliver an assignment of lease with
                  respect to any particular lease of office space or store if
                  (i) the consent of the relevant landlord is required as a
                  condition to such assignment, and (ii) despite its best
                  efforts to do so, such Loan Party is unable to obtain such
                  consent from the relevant landlord.

                           (p)      Mortgages. At the request of Required
                  Purchasers, or after the occurrence of an Event of Default at
                  the request of Agent, promptly execute and deliver, in form
                  and substance satisfactory to Agent, mortgages and/or deeds of
                  trust with respect to any real property owned by the Loan
                  Parties (other than ACE Funding).

                           (q)      Supplemental Litigation Meeting. Upon
                  Agent's or any Purchaser's request, within (i) 5 days after
                  the Borrower's filing of its quarterly report on SEC Form 10-Q
                  or its Annual Report on Form 10-K with the SEC or (ii) 15 days
                  after the occurrence of a material event, condition or change
                  involving any legal proceeding then pending against or
                  involving any Loan Party, make available for a meeting with
                  representatives of Agent and any other Purchaser desiring to
                  participate at least one knowledgeable executive officer of
                  the Company to respond to questions about (a) the disclosures
                  in any such report regarding the Borrower's legal proceedings
                  and (b) any other actions, suits or proceedings then pending
                  against or involving any Loan Party.

                           (r)      Perfection Letters. The Company shall use
                  its best efforts to cause (i) all financial institutions at
                  which the Loan Parties' (other than ACE Funding's) deposits
                  are maintained to execute and deliver a Letter Agreement
                  substantially in the form of Exhibit F-1 or F-2 attached
                  hereto, and (ii) all armored couriers that transport cash,
                  checks or other remittances for the Loan Parties (other than
                  ACE Funding) to execute and deliver a Letter Agreement
                  substantially in the form of Exhibit G attached hereto.

         7.2      Negative Covenants. The Loan Parties, jointly and severally,
covenant that, so long as all or any part of the principal amount of the Notes
or any interest thereon shall remain outstanding:

                           (a)      Indebtedness. None of the Loan Parties
                  (other than ACE Funding) shall create, incur, assume guarantee
                  or be or remain liable for, contingently or otherwise, or
                  suffer to exist any Indebtedness, except:

                                    (i)      Indebtedness under this Agreement;

                                    (ii)     Indebtedness under the Revolving
                           Financing;

                                    (iii)    Indebtedness secured by Liens
                           permitted by Section 7.2(b) hereof in an amount not
                           to exceed $3,000,000 per item of Indebtedness and
                           $5,000,000 in the aggregate outstanding at any time;

                                       47

<PAGE>

                                    (iv)    Indebtedness existing on the date
                           hereof; provided, that, such Indebtedness shall not
                           after the date hereof (A) increase in amount (except
                           increases subject to limitations in amount in
                           existence on the date hereof), (B) be secured by
                           Liens not in existence on the date hereof, or (C)
                           change in regard to seniority in any respect;

                                    (v)     Indebtedness incurred in the
                           ordinary course of business with respect to customer
                           deposits, trade payables and other unsecured current
                           liabilities incurred in connection with the Business
                           not the result of borrowing and not evidenced by any
                           note or other evidence of indebtedness;

                                    (vi)    Indebtedness that is unsecured
                           consisting of (A) current accounts payable and
                           unsecured current liabilities (not the result of
                           borrowing) incurred in the ordinary course of
                           business of the Loan Parties to vendors, suppliers
                           and Persons providing services, for expenditures for
                           goods and services normally required by it in the
                           ordinary course of business and on ordinary trade
                           terms, including (without limitation) obligations
                           pursuant to the Money Order Agreement and (B)
                           Indebtedness evidenced by Deferred Payment
                           Obligations in an amount not to exceed $4,000,000 in
                           the aggregate at any time; and

                                    (vii)   Hedging Contracts.

                  (b)      Negative Pledge; Liens. Loan Parties (other than ACE
         Funding) shall not create, incur, assume or suffer to exist any Lien of
         any kind on any of their properties or assets of any kind, except the
         following (collectively, "Permitted Liens"):

                                    (i)     Liens created pursuant to the
                           Revolving Financing and the Travelers Documents;

                                    (ii)    Liens for or priority claims imposed
                           by law that are incidental to the conduct of business
                           or the ownership of properties and assets (including
                           mechanic's, warehousemen's, attorneys' and
                           constitutional, statutory and contractual landlords'
                           liens which secure Indebtedness that are not overdue
                           for a period of more than 90 days or which are being
                           contested in good faith by appropriate proceedings)
                           and deposits, pledges or liens to secure statutory
                           obligations, surety or appeal bonds or other liens of
                           like general nature incurred in the ordinary course
                           of business and not in connection with the borrowing
                           of money; provided, however, that in each case,
                           except as set forth hereinabove, the obligation
                           secured is not more than 15 days overdue, or, if
                           overdue, is being contested in good faith and
                           adequate reserves have been set up by the Loan
                           Parties (other than ACE Funding) as the case may be;
                           and provided, further, that the lien and security
                           interest provided in the Security Documents or any
                           portion thereof created or intended to be created

                                       48

<PAGE>

                           thereby is not, in the opinion of Purchaser,
                           unreasonably jeopardized thereby;

                                    (iii)   Liens securing the payments of
                           taxes, assessments and governmental charges or levies
                           incurred in the ordinary course of business that
                           either (A) are not delinquent, or (B) are being
                           contested in good faith by appropriate legal or
                           administrative proceedings and as to which adequate
                           reserves have been set aside on their books, and so
                           long as during the period of any such contest, the
                           Loan Parties (other than ACE Funding) shall suffer no
                           loss of any privilege of doing business or any other
                           right, power or privilege necessary or material to
                           the operation of the Business;

                                    (iv)    Liens listed on Schedule 7.2(b)
                           attached hereto (the "Permitted Encumbrances
                           Schedule");

                                    (v)     extensions, renewals and
                           replacements of Liens referred to in clauses (i)
                           through (iv) of this Section 7.2(b); provided,
                           however, that any such extension, renewal or
                           replacement Lien shall be limited to the property or
                           assets covered by the Lien extended, renewed or
                           replaced and that the obligations secured by any such
                           extension, renewal or replacement Lien shall be in an
                           amount not greater than the amount of the obligations
                           secured by the Lien extended, renewed or replaced;

                                    (vi)    Liens created in favor of the
                           Collateral Agent in accordance with the Collateral
                           Agency Agreement;

                                    (vii)   Liens securing the performance of
                           bids, tenders, leases, contracts (other than the
                           repayment of borrowed money), statutory obligations,
                           surety, customs and appeal bonds and other
                           obligations of like nature, incurred as an incident
                           to and in the ordinary course of business of the Loan
                           Parties; and

                                    (viii)  Liens (including any Capitalized
                           Leases) originally created to secure payment of a
                           portion of the purchase price or construction costs,
                           as the case may be, relating to any real property or
                           equipment or any interest therein, upon such real
                           property, equipment (including furniture and
                           fixtures) or interest therein; provided, that, (A)
                           the outstanding principal Indebtedness secured by
                           such Lien does not exceed 100% of the purchase price
                           actually paid by the Loan Parties (other than ACE
                           Funding) (or in the case of a Capitalized Lease, by
                           the owner) for the real property or equipment or
                           interest therein (which is encumbered by such Lien,
                           and/or the construction costs actually incurred by
                           the Loan Parties (other than ACE Funding) with
                           respect to the improvements thereto, as the case may
                           be, (B) the Indebtedness secured by any such Lien
                           (including, in the case of any Capitalized Lease, the
                           Indebtedness related thereto) is permitted by this
                           Agreement, and (C) any such Lien does not encumber

                                       49

<PAGE>

                           any other asset at any time owned by the Loan Parties
                           (other than ACE Funding).

                           (c)      Contingent Liabilities. The Loan Parties
                  shall not become liable for any Guaranties, except for (i)
                  Guaranties to Revolving Lenders, agents for Revolving Lenders,
                  for the benefit of the Revolving Lenders and Travelers, and
                  (ii) the endorsement of negotiable instruments for deposit or
                  collection or similar transactions in the ordinary course of
                  business.

                           (d)      Deposit Accounts and Armored Couriers.
                  Company shall not, at any time after June 30, 2003, permit (i)
                  more than 5% of the aggregate amount of Company's Cash
                  Holdings and each Subsidiary's Cash Holdings (other than ACE
                  Funding's Cash Holdings) held in deposit accounts to be held
                  in deposit accounts maintained by financial institutions with
                  which there is no Letter Agreement and (ii) more than 5% of
                  the aggregate dollar amount of Company's Cash Holdings and
                  instruments and each Subsidiary's Cash Holdings (other than
                  ACE Funding's Cash Holdings) and instruments to be transported
                  by armored couriers with which there is no Letter Agreement.

                           (e)      Capital Expenditures. The Loan Parties shall
                  not incur Capital Expenditures in an amount which exceeds in
                  the aggregate (i) $5,500,000 in Fiscal Year 2003, (ii)
                  $10,725,000 in Fiscal Year 2004, (iii) $12,100,000 in Fiscal
                  Year 2005, (iv) $13,475,000 in Fiscal Year 2006, (v)
                  $12,500,000 in Fiscal Year 2007, and (vi) $12,250,000 in any
                  Fiscal Year thereafter. To the extent that any amount of
                  permitted Capital Expenditures is not used during any Fiscal
                  Year, then up to $1,000,000 of such unexpended amount may be
                  carried forward and expended during the next Fiscal Year;
                  provided, however, that (x) no amount of permitted Capital
                  Expenditures may be carried forward for more than 1 Fiscal
                  Year and (y) during any Fiscal Year in which such unexpended
                  amounts have been carried forward, all Capital Expenditures
                  shall be deemed to apply first to the amount carried forward
                  and then to the amount of Capital Expenditures permitted
                  during such Fiscal Year.

                           (f)      Mergers, Asset Sales, etc. The Loan Parties
                  shall not merge into or consolidate or combine with any other
                  Person, or purchase, lease or otherwise acquire (in one
                  transaction or a series of related transactions) all or any
                  part of the property or assets of any Person (other than
                  purchases or other acquisitions of inventory, materials,
                  leases, property and equipment in the ordinary course of
                  business) or sell, transfer or otherwise dispose of any of its
                  assets, except assets which are of nominal value or obsolete,
                  in each case in the ordinary course of business; provided,
                  however, that for so long as no Default or Event of Default
                  has occurred and is continuing hereunder, the Loan Parties
                  (other than ACE Funding) may consummate any Asset Sale if the
                  aggregate Net Cash Proceeds derived from such Asset Sale, when
                  combined with the Net Cash Proceeds derived from all other
                  Asset Sales consummated during such Fiscal Year, does not
                  exceed $5,000,000; provided, further, however, that 100% of
                  the first $2,500,000 of aggregate Net Cash Proceeds derived
                  from such Asset Sales during

                                       50

<PAGE>

                  any Fiscal Year shall be applied by the Company as a mandatory
                  prepayment of the Series A Notes and the Series B Notes in
                  accordance with Section 3.5(b)(i) hereof and 50% of the
                  aggregate Net Cash Proceeds during any Fiscal Year derived
                  from such Asset Sales in excess of $2,500,000 are used to
                  prepay the Series A Notes and the Series B Notes in accordance
                  with Section 3.5(b)(i) hereof.

                           (g)      Affiliate Transactions. The Loan Parties
                  shall not make any loan or advance (except as permitted
                  pursuant to Section 7.2(i)(x) hereof) to any director, officer
                  or employee of the Loan Parties or any Affiliate of the Loan
                  Parties, or enter into or be a party to any transaction or
                  arrangement with any Affiliate of the Loan Parties, including,
                  without limitation, the purchase from, sale to or exchange of
                  property with, any merger or consolidation with or into, or
                  the rendering of any service by or for, any Affiliate, except
                  pursuant to the reasonable requirements of the Loan Parties'
                  business and upon fair and reasonable terms no less favorable
                  to the Loan Parties than would be obtained in a comparable
                  arm's-length transaction with a Person other than an
                  Affiliate. The Company shall not make any loan or advance with
                  the proceeds of the Notes to ACE Funding.

                           (h)      Dividends and Stock Purchases. The Loan
                  Parties shall not directly or indirectly: declare or pay any
                  dividends or make any distribution of any kind on their
                  outstanding capital stock or any other payment related to
                  their outstanding capital stock of any kind to any of their
                  stockholders or its Affiliates (including any redemption,
                  purchase or acquisition of, whether in cash or in property,
                  securities or a combination thereof, any partnership interests
                  or capital accounts or warrants, options or any of their other
                  securities, but excluding (i) repayments upon forfeiture of
                  restricted stock issued to officers, directors and employees
                  of amounts paid to Company by such parties for such restricted
                  stock and (ii) warrants, options or other rights to acquire
                  common stock which are exercisable into the Company's common
                  stock), or set aside any sum for any such purpose other than
                  for such dividends, distributions or payments paid solely to
                  other Loan Parties.

                           (i)      Advances, Investments and Loans. The Loan
                  Parties shall not purchase, or hold beneficially any stock,
                  other securities or evidences of Indebtedness of, or make or
                  permit to exist any loan, Guaranty or advance to, or make any
                  Investment or acquire any interest whatsoever in, any other
                  Person (including, but not limited to, the formation or
                  acquisition of any Subsidiaries), except:

                                    (i)      securities issued or directly and
                           fully guaranteed or insured by the United States of
                           America or any agency or instrumentality thereof
                           having maturities of not more than 6 months from the
                           date of acquisition;

                                    (ii)    United States dollar-denominated
                           time deposits, certificates of deposit and bankers
                           acceptances of any bank or any bank whose

                                       51

<PAGE>

                           short-term debt rating from Standard & Poor's Ratings
                           Group, a division of The McGraw-Hill Companies, Inc.
                           ("S&P"), is at least A-1 or the equivalent or from
                           Moody's Investors Service, Inc. ("Moody's") is at
                           least P-1 or the equivalent with maturities of not
                           more than six months from the date of acquisition;

                                    (iii)   commercial paper with a rating of at
                           least A-1 or the equivalent by S&P or at least P-1 or
                           the equivalent by Moody's maturing within six months
                           after the date of acquisition;

                                    (iv)    marketable direct obligations issued
                           by any state of the United States of America or any
                           political subdivision of any such state or any public
                           instrumentality thereof maturing within 6 months from
                           the date of acquisition thereof and, at the time of
                           acquisition, having one of the two highest ratings
                           obtainable from either S&P or Moody's;

                                    (v)     Investments in money market funds
                           substantially all the assets of which are comprised
                           of securities of the types described in clauses (i)
                           through (iv) above;

                                    (vi)    deposit accounts maintained in
                           accordance with the Revolving Credit Agreement;

                                    (vii)   Investments (including debt
                           obligations) received in connection with the
                           bankruptcy or reorganization of suppliers and
                           customers and in settlement of delinquent obligations
                           of, and other disputes with, customers and suppliers
                           arising in the ordinary course of business;

                                    (viii)  receivables owing to the Loan
                           Parties created or acquired in the ordinary course of
                           business and payable on customary trade terms of the
                           Loan Parties;

                                    (ix)    deposits made in the ordinary course
                           of business consistent with past practices to secure
                           the performance of leases or contracts in connection
                           with bidding on government contracts;

                                    (x)     advances to officers and employees
                           in the ordinary course of business for business
                           expenses; provided, however, that the aggregate
                           amount of such advances at any time outstanding shall
                           not exceed $50,000;

                                    (xi)    loans and advances, to the Company's
                           retail financial service customers in the ordinary
                           course of business;

                                    (xii)   Acceptable Acquisitions, so long as
                           no Default or Event of Default has occurred and is
                           then continuing;

                                       52

<PAGE>

                                    (xiii)  Until September 30, 2003, purchase
                           of participations in consumer loans originated by
                           Goleta National Bank in accordance with the terms and
                           conditions of the Master Agency Agreement dated
                           August 11, 1999 between Company and Goleta National
                           Bank, as in effect as of such date;

                                    (xiv)   the stock of Public Currency, Inc.
                           and ePacific Incorporated; and

                                    (xv)    securities issued by the Loan
                           Parties.

                           (j)      Use of Proceeds. The Loan Parties shall not
                  use any proceeds from the sale of the Notes hereunder,
                  directly or indirectly, for the purposes of purchasing or
                  carrying any "margin securities" within the meaning of
                  Regulations T, U or X promulgated by the Board of Governors of
                  the Federal Reserve Board or for the purpose of arranging for
                  the extension of credit secured, directly or indirectly, in
                  whole or in part by collateral that includes any "margin
                  securities."

                           (k)      Stock Issuances. The Loan Parties shall not
                  issue any capital stock or other equity interests or any
                  options or warrants to purchase, or securities convertible
                  into capital or equity interests or establish any stock
                  appreciation rights or similar programs based on the value of
                  the Loan Parties' equity interests; provided, however, this
                  Section 7.2(k) shall not restrict issuances by the Company of
                  its common stock or of warrants, options or other rights to
                  acquire common stock exercisable into its common stock.

                           (l)      Amendment of Charter Documents. The Loan
                  Parties shall not amend, terminate, modify or waive or agree
                  to the amendment, modification or waiver of any material term
                  or provision of their respective Charter Documents, or
                  By-laws.

                           (m)      Subsidiaries. None of the Loan Parties shall
                  establish or acquire any Subsidiary, except for those
                  established in connection with Acceptable Acquisitions.

                           (n)      Business. None of the Loan Parties shall
                  engage, directly or indirectly, in any business other than the
                  Business.

                           (o)      Fiscal Year; Accounting. None of the Loan
                  Parties shall change its Fiscal Year from ending on June 30 or
                  method of accounting (other than immaterial changes in
                  methods), except as required by GAAP.

                           (p)      Establishment of New or Changed Business
                  Locations; Change in Jurisdiction of Organization. None of the
                  Loan Parties shall relocate its principal executive offices or
                  its jurisdiction of incorporation, organization or formation,
                  or establish new business locations or store any inventory or
                  other assets at a location not identified to Agent on or
                  before the date hereof, without providing not less than thirty
                  (30) days advance written notice to Agent.

                                       53

<PAGE>

                           (q)      Changed or Additional Business Names. None
                  of the Loan Parties shall change its corporate name without
                  providing less than 30 days advance written notice to Agent.

                           (r)      Other Agreements. None of the Loan Parties
                  (other than ACE Funding) shall enter into any agreement which
                  requires it to comply with any financial covenant (excluding
                  financial covenants contained in the Revolving Credit
                  Agreement) to the extent that such financial covenant could
                  reasonably be expected to be more restrictive than any of the
                  financial covenants contained in this Agreement, unless this
                  Agreement is amended to include such financial covenant
                  contemporaneously upon the execution and delivery of such
                  other agreement.

                           (s)      Modification of Certain Documents. Company
                  will not agree or consent, without first obtaining the prior
                  written consent of the Purchasers, to any modification or
                  amendment of any of the terms or provisions of the Revolving
                  Credit Documents (as in effect on the date hereof) (provided
                  that nothing set forth in this Agreement shall require any
                  Purchasers' consent to a waiver of any failure of Company to
                  comply with the provisions of the Revolving Credit Documents)
                  that has the effect of (i) increasing the interest rates on
                  the Revolving Financing in excess of the stated applicable
                  maximum non-default rates set forth in the Revolving Credit
                  Agreement as in effect on the date of this Agreement (other
                  than the application of default interest as set forth in the
                  Revolving Credit Agreement or due to fluctuations of the
                  LIBOR, prime or base rates used in determining the interest
                  rates under the Revolving Credit Documents), (ii) accelerating
                  the dates upon which payments of principal on the Revolving
                  Facility are due (other than an acceleration on account of an
                  event of default under the Revolving Credit Agreement), (iii)
                  adding or changing any event of default or condition to a
                  default with respect to the Revolving Credit Agreement, (iv)
                  changing or amending any of Sections 6.07 through 6.10,
                  inclusive, of the Revolving Credit Agreement in a manner that
                  would make any such covenant more restrictive as to any Loan
                  Party (other than Loan Party) in comparison with the terms of
                  such provisions as in effect on the date hereof, (v)
                  increasing any premiums or fees payable to any Revolving
                  Lender or any agent for the Revolving Lenders, (vi) increasing
                  the aggregate maximum principal amount available in respect of
                  the Total Seasonal Revolving Credit Commitment and/or the
                  Total Revolving Credit Commitments (in each case, as defined
                  in the Revolving Credit Agreement in effect on the date
                  hereof, without giving effect to any amendment, restatement or
                  modification thereof, other than an amendment, restatement or
                  modification pursuant to Section 2.15 thereof, as in effect on
                  the date hereof), (vii) changing the borrowing base related to
                  the Revolving Financing, or (viii) modifying any covenant or
                  provision of the Revolving Credit Documents to expressly
                  prohibit the Loan Parties (other than ACE Funding) from making
                  payments in respect of the Notes that are permitted to be made
                  on the date hereof. Company will not agree or consent, without
                  first obtaining the prior written consent of the Purchasers,
                  to any modification or amendment of any of the terms or
                  provisions of (i) the Goleta

                                       54

<PAGE>

                  Agreement or (ii) to the extent such modification or amendment
                  would have a Material Adverse Effect, the Travelers Documents.

                           (t)      Restrictive Agreements. Except as provided
                  in the Revolving Credit Agreement or in the Loan and Servicing
                  Agreement, the Loan Parties shall not create any restriction
                  of any kind on the ability of any Subsidiary (including, but
                  not limited to, ACE Funding) to: (i) pay dividends or make any
                  other distributions to the Company or any Subsidiary of the
                  Company, (ii) pay any Indebtedness owed to any Loan Party,
                  (iii) make loans or advances to the any Loan Party, (iv)
                  transfer any of its properties or assets to any Loan Party, or
                  (v) grant a Lien on any of its properties or assets.

                           (u)      Sale and Lease-Back Transactions. Except as
                  described on Schedule 7.2(u) hereto, the Loan Parties shall
                  not enter into any arrangement, directly or indirectly, with
                  any Person whereby any of them shall sell or transfer any
                  property, real or personal, used or useful in their respective
                  business, whether now owned or hereafter acquired, and
                  thereafter rent or lease such property or other property which
                  such Loan Party intends to use for substantially the same
                  purpose or purposes as the property being sold or transferred,
                  except for any such arrangements that are entered into in the
                  Company's ordinary course of business.

                           (v)      Equity Interest in Subsidiaries. The Loan
                  Parties shall not sell, transfer, encumber, pledge or
                  otherwise dispose of any partnership interests, stock or
                  equity securities of, or other equity interests (including,
                  without limitation, any options, warrants or other rights to
                  acquire any equity interests) ("Equity Interests") in, any
                  Subsidiary or permit any of its Subsidiaries to issue any
                  additional equity other than to the Company or to a Subsidiary
                  of the Company; or otherwise permit any Subsidiary to be other
                  than a direct or indirect wholly-owned Subsidiary.

                           (w)      ACE Funding. Notwithstanding anything to the
                  contrary contained in this Agreement, (i) ACE Funding shall
                  not incur or be liable in respect of any Indebtedness other
                  than Unrestricted Indebtedness in favor of Autobahn Funding
                  Company LLC ("ACE Funding Lender"), and such Unrestricted
                  Indebtedness may be secured by Liens on any or all of ACE
                  Funding's assets or properties, (ii) the Company shall be
                  permitted to (A) make an equity investment in ACE Funding not
                  to exceed $1,000,000 and (B) loan to ACE Funding up to the
                  lesser of (x) $3,000,000 or (y) 1% of the total aggregate
                  financial commitment of the ACE Funding Lender to ACE Funding,
                  during the Usage Period for purposes of allowing ACE Funding
                  to (1) satisfy its minimum funding requirements under one or
                  more reserve accounts to be established by ACE Funding in
                  favor of the ACE Funding Lender and (2) provide cash to its
                  SSMs in various H&R Block business locations, (iii) ACE
                  Funding shall not be required to become a Guarantor hereunder,
                  (iv) neither the Company nor ACE Funding shall allow ACE
                  Funding Lender to have or obtain a Lien on any assets or
                  properties of the Company or any of its other Subsidiaries,
                  (v) except as provided in this Section 7.2(w), neither Company
                  nor any of its other Subsidiaries

                                       55

<PAGE>

                  will engage in any transaction (excluding transactions
                  contemplated by the Loan and Servicing Agreement), merger or
                  consolidation with ACE Funding or provide any credit support
                  for any Unrestricted Indebtedness which ACE Funding is
                  permitted to incur hereunder, (vi) ACE Funding shall not own
                  any equity in, or Indebtedness of, the Company or any of its
                  other Subsidiaries, (vii) neither Company nor any of its other
                  Subsidiaries will sell, lease, transfer or otherwise assign
                  any of its assets or properties to, or acquire, for any amount
                  of consideration, any assets or properties of, or enter into
                  any contract or agreement with ACE Funding (provided, however,
                  that the Company shall be permitted to lease its SSMs to ACE
                  Funding) and (viii) except as specifically permitted under
                  clause (ii) above, neither Company nor any of its other
                  Subsidiaries will make any loans or advances to, or make any
                  equity investments in, ACE Funding (other than the minimum
                  equity investment, if any, required to form ACE Funding under
                  its jurisdiction of organization); provided, however, that at
                  any time ACE Funding or Company fails to comply with this
                  Section 7.2(w), ACE Funding shall be immediately required to
                  execute and deliver Purchase Documents of the type required of
                  newly created Subsidiaries of Company under Section 7.1(n).

         7.3      Financial Covenants. The Loan Parties, jointly and severally,
covenant that, so long as all or any part of the principal amount of the Notes
or any interest thereon shall remain outstanding, they shall maintain, on a
Consolidated basis at the end of each calendar quarter (each such date being a
"Measurement Date") beginning April 30, 2003:

                           (a)      Cash Flow Coverage Ratio. A minimum Cash
                  Flow Coverage Ratio of at least 1.05 to 1.00

                           (b)      Funded Debt to EBITDA Ratio. A maximum Debt
                  to EBITDA Ratio as of the Measurement Date as follows:

<TABLE>
<CAPTION>
           Measurement Date                                    Ratio
           ----------------                                    -----
<S>                                                        <C>
From Closing Date through and including                     3.85 to 1.00
December 31, 2003
March 31, 2004                                             4.125 to 1.00

June 30, 2004 through and including                         3.85 to 1.00
December 31, 2004
March 31, 2005                                             4.125 to 1.00

June 30, 2005 through and including                         3.85 to 1.00
December 31, 2005
March 31, 2006                                             4.125 to 1.00

June 30, 2006 through and including                         3.50 to 1.00
December 31, 2006
March 31, 2007                                              4.00 to 1.00
</TABLE>

                                       56

<PAGE>

<TABLE>
<CAPTION>
             Measurement Date                                  Ratio
             ----------------                                  -----
<S>                                                         <C>
June 30, 2007 through and including                         3.40 to 1.00
December 31, 2007
March 31, 2008                                              3.90 to 1.00

June 30, 2008 through and including                         3.30 to 1.00
December 31, 2008
March 31, 2009                                              3.80 to 1.00

June 30, 2009 through and including                         3.20 to 1.00
December 31, 2009
March 31, 2010 and thereafter                               3.70 to 1.00
</TABLE>

                           For the purpose of calculating the Funded Debt to
                  EBITDA Ratio only, the Indebtedness outstanding under the
                  Revolving Facility as of any date of determination shall be
                  deemed to be the average amount outstanding hereunder during
                  the 7 calendar days immediately preceding such date of
                  determination.

                           (c)      Net Worth. A minimum Net Worth of at least
                  the sum of $57,634,200 plus (b) 75% of all Net Income earned
                  after the Closing Date during any completed fiscal quarter,
                  provided, however that fiscal quarters in which Net Income is
                  a negative amount will be excluded from the calculation of Net
                  Income earned after the Closing Date, plus (c) an amount equal
                  to all proceeds of any offering of Equity Interests (net of
                  offering and professional fees and expenses) by the Loan
                  Parties occurring after the Closing Date that is permitted
                  hereunder.

                           (d)      Minimum EBITDA. At the end of any fiscal
                  quarter, permit the aggregate EBITDA on a Consolidated basis
                  for the four previous quarters to be less than 75% of the
                  aggregate EBITDA on a Consolidated basis for the four
                  consecutive fiscal quarters reported at the prior fiscal
                  quarter end.

Notwithstanding the foregoing, the calculations of the financial covenants
contained in this Section 7.3 shall include (x) dividends or other distributions
paid by ACE Funding to the Company in respect of Equity Interests issued by ACE
Funding and owned by Company, (y) all payments made by ACE Funding to the
Company on loans or other advances made to ACE Funding by the Company, and (z)
for balance sheet purposes, amounts invested in or loaned to ACE Funding by
Company.

                                   ARTICLE 8

                                EVENTS OF DEFAULT

         8.1      Events of Default. An Event of Default means the occurrence of
one or more of the following described events:

                           (a)      any Loan Party (other than ACE Funding)
                  shall default in the payment of (i) interest on the Notes,
                  within 5 days after its due date, (ii) principal

                                       57

<PAGE>

                  of the Notes when due, whether at maturity, upon notice of
                  prepayment in accordance with Sections 3.3 or 3.4, upon any
                  scheduled payment date, by acceleration or otherwise or (iii)
                  the Administrative Fee and/or the Facility Fee, within 5 days
                  after the due date;

                           (b)      any Loan Party (other than ACE Funding)
                  shall default under any agreement (other than the Revolving
                  Credit Documents) under which any Indebtedness in an aggregate
                  principal amount of $500,000 or more is created in a manner
                  entitling the holder of such Indebtedness to accelerate the
                  maturity of such Indebtedness.

                           (c)      any representation or warranty herein made
                  by any Loan Party (other than ACE Funding), or any certificate
                  or financial statement furnished pursuant to the provisions
                  hereof, shall prove to have been false or misleading in any
                  material respect as of the time made or furnished or deemed
                  made or furnished;

                           (d)      any Loan Party (other than ACE Funding)
                  shall default in the performance of any covenant, condition or
                  provision of (i) Sections 7.1(f), 7.1(h), 7.1(n), 7.2 or 7.3;
                  or (ii) Sections 7.1(a), 7.1(b), 7.1(c), or 7.1(e) of this
                  Agreement and such default shall continue unremedied for 5 or
                  more consecutive Business Days after the earlier of (x) the
                  date notice thereof shall have been given to the Company by
                  Agent or any Purchaser, or (y) the date on which such failure
                  becomes known to any Responsible Officer of the Company; or
                  (iii) default shall be made in the due observance or
                  performance of any other covenant, condition or agreement to
                  be observed or performed on the part of any Loan Party (other
                  than ACE Funding) pursuant to this Agreement and not otherwise
                  specifically covered by this Section 8.1 and such default
                  shall continue unremedied for 30 or more consecutive Business
                  Days after the earlier of (x) the date notice thereof shall
                  have been given to such Loan Party by Agent or any Purchaser,
                  or (y) the date on which such failure becomes known to any
                  Responsible Officer of such Loan Party; provided, however, the
                  grace periods provided for in this Section 8.1(d) shall be
                  void and of no effect unless such Loan Party shall, to the
                  extent such Loan Party has actual knowledge thereof, provide
                  prompt notice to the Agent (in writing) of (A) the occurrence
                  or expected occurrence of such Default, with a certification
                  to the Agent of the Company's good faith expectation that such
                  Default shall be cured by the Company before the end of the
                  grace period; and (B) the occurrence of the Company's cure of
                  the Default before the end of the grace period. During the
                  grace period, a Default shall be deemed to have occurred and
                  be continuing until actually cured by the Company. If any such
                  Default is not cured before the end of the grace period, the
                  Agent shall have all of the rights described in this Agreement
                  and each of the other Purchase Documents without any
                  restriction imposed by this Section 8.1(d) whatsoever;

                           (e)      a default or event of default shall occur
                  and shall continue, without waiver by the Revolving Lenders
                  pursuant to the Revolving Credit Agreement, under the
                  Revolving Credit Documents, beyond any applicable notice or
                  cure

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<PAGE>

                  periods, and the Revolving Lenders shall have accelerated the
                  maturity of the Revolving Financing;

                           (f)      the occurrence of an event or condition
                  (after giving effect to any applicable notice and cure
                  provisions) that permits Travelers to terminate the Money
                  Order Agreement under Section 18.b thereof because of default
                  by the Company thereunder;

                           (g)      any Loan Party (other than ACE Funding)
                  shall default in the performance of any covenant, condition or
                  provision of the Purchase Documents (excluding the Notes and
                  this Agreement), and such default shall not be remedied to
                  Agent's or Required Purchasers' satisfaction for a period of
                  30 days of the earlier of (i) written notice from a Agent of
                  such default or (ii) actual knowledge by any Loan Party (other
                  than ACE Funding) of such default;

                           (h)      a proceeding shall have been instituted in a
                  court having jurisdiction in the premises seeking a decree or
                  order for relief in respect of any Loan Party in an
                  involuntary case under any applicable bankruptcy, insolvency
                  or other similar law now or hereafter in effect, or for the
                  appointment of a receiver, liquidator, assignee, custodian,
                  trustee, sequestrator (or similar official) of any Loan Party
                  or for any substantial part of its property, or for the
                  winding-up or liquidation of their affairs, and such
                  proceeding shall remain undismissed or unstayed and in effect
                  for a period of 45 days;

                           (i)      any Loan Party shall commence a voluntary
                  case under any applicable bankruptcy, insolvency or other
                  similar law now or hereafter in effect, shall consent to the
                  entry of an order for relief in an involuntary case under any
                  such law, or shall consent to the appointment of or taking
                  possession by a receiver, liquidator, assignee, trustee,
                  custodian, sequestrator (or other similar official) of any
                  Loan Party or for any substantial part of their property, or
                  shall make a general assignment for the benefit of creditors,
                  or shall fail generally to pay their debts as they become due,
                  or shall take any action in furtherance of any of the
                  foregoing;

                           (j)      both the following events shall occur: (i) a
                  Reportable Event, the occurrence of which would have a
                  Material Adverse Effect which could cause the imposition of a
                  Lien under Section 4068 of ERISA, shall have occurred with
                  respect to any Plan or Plans; and (ii) the aggregate amount of
                  the then "current liability" (as defined in Section 412(l)(7)
                  of the Code) of all accrued benefits under such Plan or Plans
                  exceeds the then current value of the assets allocable to such
                  benefits by more than $500,000 at such time;

                           (k)      (i) a final judgment which, with other
                  undischarged final judgments against any Loan Party, exceeds
                  an aggregate of $1,000,000 (excluding judgments to the extent
                  the applicable Loan Party is fully insured or the deductible
                  or retention limit does not exceed $1,000,000 and with respect
                  to which the insurer has assumed responsibility in writing),
                  shall have been entered

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<PAGE>

                  against any Loan Party if, within 30 days after the entry
                  thereof, such judgment shall not have been discharged or
                  execution thereof stayed pending appeal, or if, within 30 days
                  after the expiration of any such stay, such judgment shall not
                  have been discharged or (ii) after the Closing Date, the Loan
                  Parties (other than ACE Funding) shall settle any lawsuit or
                  cause of action filed against it or them requiring the Loan
                  Parties (other than ACE Funding) to pay an amount (net of
                  insurance proceeds) (x) equal to or greater than $5,000,000
                  with respect to any single lawsuit or cause of action or (y)
                  equal to or greater than $10,000,000 with respect to all
                  lawsuits or causes of action in the aggregate;

                           (l)      this Agreement, any Note or any Security
                  Document shall for any reason cease to be, or shall be
                  asserted by the Company or any Guarantor not to be, a legal,
                  valid and binding obligation of such Person, enforceable in
                  accordance with its terms;

                           (m)      any Guarantor revokes, terminates or fails
                  to perform any of the terms, conditions, covenants or
                  provisions of any Guaranty Agreement, Security Document,
                  endorsement or other agreement of such Person to the
                  Purchasers;

                           (n)      any Security Document shall at any time
                  after the Closing Date cease for any reason to be in full
                  force and effect or shall cease to create perfected security
                  interests in favor of Agent in the collateral subject or
                  purported to be subject thereto, subject to no other Liens
                  other than Permitted Liens, or such collateral shall have been
                  transferred to any Person without the prior written consent of
                  the holders of a majority in principal amount of the
                  outstanding Notes;

                           (o)      any event or change in circumstances occurs
                  which would result in a Material Adverse Effect; and/or

                           (p)      a Change of Control shall have occurred.

         8.2      Consequences of Event of Default.

                           (a)      Bankruptcy. If an Event of Default specified
                  in paragraphs (h) or (i) of Section 8.1 hereof shall occur,
                  the unpaid balance of the Notes and interest accrued thereon
                  and all other liabilities of the Loan Parties (other than ACE
                  Funding) to the holders thereof hereunder and thereunder shall
                  be immediately due and payable, without presentment, demand,
                  protest or (except as expressly required hereby) notice of any
                  kind, all of which are hereby expressly waived.

                           (b)      Other Defaults. If any other Event of
                  Default shall occur, Required Purchasers may at their option,
                  by written notice to the Loan Parties (other than ACE
                  Funding), declare the entire unpaid balance of the Notes, and
                  interest accrued thereon and all other liabilities of the Loan
                  Parties hereunder and thereunder to be forthwith due and
                  payable, and the same shall thereupon become immediately due
                  and payable, without presentment, demand, protest or (except
                  as expressly required hereby) notice of any kind, all of which
                  are hereby expressly waived; provided, that in the case of a
                  default specified in clause (ii) of paragraph

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<PAGE>

                  (a) of Section 8.1 hereof shall occur, any holder of a Note
                  may declare the entire unpaid balance of such Note (but only
                  such Note) and other amounts due hereunder and thereunder with
                  regard to such Note to become immediately due and payable.

                           (c)      Penalty Interest. Following the occurrence
                  and during the continuance of any Event of Default, the
                  holders of the Notes shall be entitled to receive, to the
                  extent permitted by applicable law, interest on the
                  outstanding principal of, and premium and overdue interest, if
                  any, on, the Notes at a rate per annum equal to the interest
                  rate thereon (determined as provided in Section 3.1) plus two
                  hundred (200) basis points.

                           (d)      Premium. In the event of any acceleration of
                  any Note pursuant to Section 8.2(b) hereof, the Loan Parties
                  shall also pay to Agent, for the ratable benefit of Purchasers
                  the prepayment premium that would otherwise be payable upon
                  any voluntary prepayment of such Note.

         8.3      Security. Payments of principal of, and premium, if any, and
interest on, the Notes and all other obligations of the Loan Parties (other than
ACE Funding) under this Agreement or the Notes are secured pursuant to the terms
of the Security Documents.

                                    ARTICLE 9

                                    THE AGENT

         9.1      Authorization and Action. Each Purchaser and each subsequent
holder of any Note by its acceptance thereof, hereby designates and appoints
ACFS as Agent hereunder and authorizes ACFS to take such actions as agent on its
behalf and to exercise such powers as are delegated to Agent by the terms of
this Agreement and the other Purchase Documents, together with such powers as
are reasonably incidental thereto. Agent shall not have any duties or
responsibilities, except those expressly set forth herein, or any fiduciary
relationship with any Purchaser, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities on the part of Agent shall
be read into this Agreement or otherwise exist for Agent. In performing its
functions and duties hereunder, Agent shall act solely as agent for Purchasers
and does not assume, nor shall be deemed to have assumed, any obligation or
relationship of trust or agency with or for the Loan Parties or any of their
respective successors or assigns. Agent shall not be required to take any action
that exposes Agent to personal liability or that is contrary to this Agreement
or applicable Laws. The appointment and authority of Agent hereunder shall
terminate at the indefeasible payment in full of the Notes and related
obligations.

         9.2      Delegation of Duties Agent may execute any of its duties under
this Agreement by or through agents or attorneys-in-fact and shall be entitled
to advice of counsel concerning all matters pertaining to such duties. Agent
shall not be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care.

         9.3      Exculpatory Provisions. Neither Agent nor any of its
directors, officers, agents or employees shall be (a) liable for any action
lawfully taken or omitted to be taken by it or them

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<PAGE>

under or in connection with this Agreement (except for its, their or such
Person's own gross negligence or willful misconduct or, in the case of Agent,
the breach of its obligations expressly set forth in this Agreement, unless such
action was taken or omitted to be taken by the Agent at the direction of the
Required Purchasers), or (b) responsible in any manner to any of Purchasers for
any recitals, statements, representations or warranties made by Company
contained in this Agreement or in any certificate, report, statement or other
document referred to or provided for in, or received under or in connection
with, this Agreement for the value, validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or any other document furnished
in connection herewith, or for any failure of Company to perform its respective
obligations hereunder, or for the satisfaction of any condition specified in
Article 4. Agent shall not be under any obligation to any Purchaser to ascertain
or to inquire as to the observance or performance of any of the agreements or
covenants contained in, or conditions of, this Agreement, or to inspect the
properties, books or records of Company.

         9.4      Reliance. Agent shall in all cases be entitled to rely, and
shall be fully protected in relying, upon any document or conversation believed
by it to be genuine and correct and to have been signed, sent or made by the
proper Person or Persons and upon advice and statements of legal counsel
(including, without limitation, counsel to Company), independent accountants and
other experts selected by Agent. Agent shall in all cases be fully justified in
failing or refusing to take any action under this Agreement or any other
document furnished in connection herewith unless it shall first receive such
advice or concurrence of the Required Purchasers or all of the Purchasers, as
applicable, as it deems appropriate or it shall first be indemnified to its
satisfaction by the Purchasers; provided, that, unless and until Agent shall
have received such advice, Agent may take or refrain from taking any action, as
Agent shall deem advisable and in the best interests of the Purchasers. Agent
shall in all cases be fully protected in acting, or in refraining from acting,
in accordance with a request of the Required Purchasers or all of the
Purchasers, as applicable, and such request and any action taken or failure to
act pursuant thereto shall be binding upon all Purchasers.

         9.5      Non-Reliance on Agent and Other Purchasers Each Purchaser
expressly acknowledges that neither Agent, nor any of its officers, directors,
employees, agents, attorneys-in-fact or affiliates has made any representations
or warranties to it and that no act by Agent or hereafter taken, including,
without limitation, any review of the affairs of the Loan Parties, shall be
deemed to constitute any representation or warranty by Agent. Each Purchaser
represents and warrants to Agent that it has and will, independently and without
reliance upon Agent or any other Purchaser and based on such documents and
information as it has deemed appropriate, made its own appraisal of and
investigation into the business, operations, property, prospects, financial and
other conditions and creditworthiness of the Loan Parties (other than ACE
Funding) and made its own decision to enter into this Agreement.

         9.6      Agent in its Individual Capacity Agent, and each of its
Affiliates may make loans to, purchase securities from, provide services to,
accept deposits from and generally engage in any kind of business with Company
or any Affiliate of the Loan Parties (other than ACE Funding) as though Agent
were not Agent hereunder.

         9.7      Successor Agent. Agent may, upon 45 days' notice to Company
and Purchasers, and Agent will, upon the direction of the Required Purchasers
(other than Agent, in its individual

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<PAGE>

capacity), resign as Agent. If Agent shall resign, then the Required Purchasers
during such 45-day period shall appoint a successor Agent and if the Required
Purchasers direct Agent to resign, such direction shall include an appointment
of a successor Agent. If for any reason no successor Agent is appointed by the
Required Purchasers during such 45-day period, then effective upon the
expiration of such 45-day period, Purchasers shall perform all of the duties of
Agent hereunder and Company shall make all payments in respect of the Notes
directly to the applicable Purchaser and for all purposes shall deal directly
with Purchasers. After any retiring Agent's resignation hereunder as Agent, the
provisions of this Article 9 shall inure to its benefit as to any actions taken
or omitted to be taken by it while it was Agent under this Agreement.

         9.8      Collections and Disbursements.

                           (a)      Agent will have the right to collect and
                  receive all payments of the Notes, and to collect and receive
                  all reimbursements due hereunder, together with all fees,
                  charges or other amounts due under this Agreement and the
                  other Purchase Documents with regard to the Notes, and Agent
                  will remit to each Purchaser, according to its pro rata
                  percentage, all such payments actually received by Agent
                  (other than pursuant to the Fee Letter) in accordance with the
                  settlement procedures established from time to time.
                  Settlements shall occur on such dates as Agent may elect in
                  its sole discretion, but which shall be no later than two (2)
                  Business Days following receipt thereof.

                           (b)      If any such payment received by Agent is
                  rescinded or otherwise required to be returned for any reason
                  at any time, whether before or after termination of this
                  Agreement or the other Purchase Documents, each Purchaser
                  will, upon written notice from Agent, promptly pay over to
                  Agent its pro rata percentage of the amounts so rescinded or
                  returned, together with interest and other fees thereon so
                  rescinded or returned.

                           (c)      All payments by Agent and Purchasers to each
                  other hereunder shall be in immediately available funds. Agent
                  will at all times maintain proper books of accounts and
                  records reflecting the interest of each Purchaser in the
                  Notes, in a manner customary to Agent's keeping of such
                  records, which books and records shall be available for
                  inspection by each Purchaser at reasonable times during normal
                  business hours, at such Purchaser's sole expense. Agent may
                  treat the payees of any Note as the holder thereof until
                  written notice of the transfer thereof shall have been
                  received by Agent in accordance with Section 6.3 hereof. In
                  the event that any Purchaser shall receive any payment in
                  reduction of the Notes in an amount greater than its
                  applicable pro rata percentage in respect of obligations to
                  Purchaser evidenced hereby (including, without limitation
                  amounts obtained by reason of setoffs) such Purchaser shall
                  hold such excess in trust for Agent (on behalf of all other
                  Purchasers) and shall promptly remit to Agent such excess
                  amount so that the amounts received by each Purchaser
                  hereunder shall at all times be in accordance with its
                  applicable pro rata percentage. If, however, any Purchaser
                  that has received any such excess amount fails to remit such
                  amount to the Agent, the Agent shall reallocate the amounts
                  paid on the next payment date to each Purchaser so that, after
                  giving effect to such payments, the

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<PAGE>

                  pro rata obligations owed by Company to each Purchaser shall
                  be in an amount equal to the pro rata amount owed by Company
                  before the date of the payment of such excess amount. In no
                  event shall any Purchaser be deemed to have a participation or
                  other right in, to or against any other Purchaser's Note as a
                  result of the payment of any excess amount.

         9.9      Reporting During the term of this Agreement, Agent will
promptly furnish each Purchaser with copies of all notices and financial
statements of Company required to be delivered or obtained hereunder and such
other financial statements and reports and other information in Agent's
possession as any Purchaser may reasonably request. Agent will immediately
notify Purchasers when it receives actual knowledge of any Event of Default
under the Purchase Documents.

         9.10     Consent of Purchasers

                           (a)      Except as expressly provided herein, Agent
                  shall have the sole and exclusive right to service, administer
                  and monitor the Notes and the Purchase Documents related
                  thereto, including, without limitation, the right to exercise
                  all rights, remedies, privileges and options under this
                  Agreement and under the other Purchase Documents, including,
                  without limitation, the credit judgment with respect to the
                  purchasing of the Notes and the determination as to the basis
                  on which and extent to which purchases of Notes may be made.

                           (b)      Notwithstanding anything to the contrary
                  contained in Section 9.10(a) hereof, Agent shall not without
                  the prior written consent of all Purchasers then holding
                  Notes: (i) extend any payment date under the Notes, (ii)
                  reduce any interest rate applicable to any of the Notes or any
                  fee payable to Purchasers hereunder, (iii) waive any Event of
                  Default under Section 8.1(a), (iv) compromise or settle all or
                  a portion of the Indebtedness under the Note, (v) release any
                  obligor from the Indebtedness under the Notes except in
                  connection with full payment and satisfaction of all
                  Indebtedness under the Notes, (vi) amend the definition of
                  Required Purchasers, or (vii) amend this Section 9.10(b).

                           (c)      Notwithstanding anything to the contrary
                  contained in Section 9.10(a) hereof, and subject to any
                  applicable limitation set forth in Section 9.10(b) hereof,
                  Agent shall not, without the prior written consent of Required
                  Purchasers: (i) waive any Event of Default; (ii) consent to
                  any Loan Party's taking any action that, if taken, would
                  constitute an Event of Default under this Agreement or under
                  any of the other Purchase Documents; or (iii) amend or modify
                  or agree to an amendment or modification of this Agreement or
                  other Purchase Documents.

                           (d)      After an acceleration of the Indebtedness,
                  Agent shall have the sole and exclusive right, after
                  consultation (to the extent reasonably practicable under the
                  circumstances) with all Purchasers and, unless otherwise
                  directed in writing by Required Purchasers, to exercise or
                  refrain from exercising any and all rights,

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<PAGE>

                  remedies, privileges and options under this Agreement or the
                  other Purchase Documents and available at law or in equity to
                  protect the rights of Agent and Purchasers and collect the
                  Indebtedness under the Notes, including, without limitation,
                  instituting and pursuing all legal actions brought against any
                  Loan Party (other than ACE Funding) or to collect the
                  Indebtedness under the Notes, or defending any and all actions
                  brought by any Loan Party or other Person; or incurring
                  expenses or otherwise making expenditures to protect the
                  collateral, the Notes or Agent's or any Purchaser's rights or
                  remedies.

         9.11     This Article Not Applicable to Company. This Article 9 is
included in this Agreement solely for the purpose of determining certain rights
as between Agent and Purchasers and does not create, nor shall it give rise to,
any rights in or obligations on the part of Company and all rights and
obligations of Company (other than as specifically set forth herein) under this
Agreement shall be determined by reference to the provisions of this Agreement
other than this Article 9.

                                   ARTICLE 10

                                  MISCELLANEOUS

         10.1     Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors
and assigns, except that (a) Company may not assign or transfer their rights
hereunder or any interest herein or delegate their duties hereunder and (b)
Purchasers shall have the right to assign their rights hereunder and under the
Notes in accordance with Article 6.

         10.2     Modifications and Amendments. The provisions of this Agreement
may be modified, waived or amended, but only by a written instrument signed by
Company to be bound thereby, and to the extent such modification, amendment or
waiver relates to the Notes, such instrument must be executed by Agent on behalf
of Purchasers upon satisfaction of the conditions set forth in Section 9.10.

         10.3     No Implied Waivers; Cumulative Remedies; Writing Required. No
delay or failure in exercising any right, power or remedy hereunder shall affect
or operate as a waiver thereof; nor shall any single or partial exercise thereof
or any abandonment or discontinuance of steps to enforce such a right, power or
remedy preclude any further exercise thereof or of any other right, power or
remedy. The rights and remedies hereunder are cumulative and not exclusive of
any rights or remedies that Agent or Purchasers or any holder of Notes would
otherwise have. Any waiver, permit, consent or approval of any kind or character
of any breach or default under this Agreement or any such waiver of any
provision or condition of this Agreement must be in writing, satisfy the
conditions set forth in Section 9.10 and shall be effective only to the extent
in such writing specifically set forth.

         10.4     Reimbursement of Expenses. Company upon demand shall pay or
reimburse Agent and Purchasers for all reasonable fees and expenses incurred or
payable by Agent or Purchasers (including, without limitation, reasonable fees
and expenses of special counsel for

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<PAGE>

Agent and Purchasers), from time to time (a) arising in connection with the
negotiation, preparation and execution of this Agreement, the Notes, the other
Purchase Documents and all other instruments and documents to be delivered
hereunder or thereunder or arising in connection with the transactions
contemplated hereunder or thereunder, (b) relating to any amendments, waivers or
consents pursuant to the provisions hereof or thereof, and (c) arising in
connection with the enforcement of this Agreement or collection of the Notes.

         10.5     Holidays. Whenever any payment or action to be made or taken
hereunder or under the Notes shall be stated to be due on a day which is not a
Business Day, such payment or action shall be made or taken on the next
following Business Day, and such extension of time shall be included in
computing interest or fees, if any, in connection with such payment or action.

         10.6     Notices. All notices and other communications given to or made
upon any party hereto in connection with this Agreement shall, except as
otherwise expressly herein provided, be in writing (including telecopy, but in
such case, a confirming copy will be sent by another permitted means) and mailed
via certified mail, telecopied or delivered by guaranteed overnight parcel
express service or courier to the respective parties, as follows:

                  to Company:

                           ACE Cash Express, Inc.
                           1231 Greenway Drive, Suite 800
                           Irving, Texas 75038
                           Attn.:  Mr. Jay B. Shipowitz
                           Telecopier:  (972) 582-1430

                  with a copy to:

                           Gardere Wynne Sewell, L.L.P.
                           3000 Thanksgiving Tower
                           Dallas, Texas 75201
                           Attn.:  Richard A. Tulli, Esq.
                           Telecopier:  (214) 999-3676

                  to Agent:

                           American Capital Financial Services, Inc.
                           2 Bethesda Metro Center, 14th Floor
                           Bethesda, Maryland  20814
                           Attn:  Compliance Officer
                           Telecopier:  (301) 654-6714

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<PAGE>

                  with a copy to:

                           Arnold & Porter
                           555 12th Street, N.W.
                           Washington, D.C. 20004
                           Attn:  Samuel A. Flax, Esq.
                           Telecopier:  (202) 942-5999

                  and to:

                           American Capital Strategies, Ltd.
                           2200 Ross Avenue, Suite 4500W
                           Dallas, Texas  75201
                           Attn:  Jeffrey N. MacDowell
                           Telecopier:  (214) 273-6635

                  with a copy to:

                           Patton Boggs LLP
                           2001 Ross Avenue, Suite 3000
                           Dallas, Texas  75201
                           Attn:  R. Jeffery Cole, Esq.
                           Telecopier:  (214) 758-1550

                  to Purchasers:

                  As set forth on Annex A attached hereto

or in accordance with any subsequent written direction from the recipient party
to the sending party. All such notices and other communications shall, except as
otherwise expressly herein provided, be effective upon delivery if delivered by
courier or overnight parcel express service; in the case of certified mail, 3
Business Days after the date sent; or in the case of telecopy, when received.

         10.7     Survival. All representations, warranties, covenants and
agreements of Company contained herein or made in writing in connection herewith
shall survive the execution and delivery of this Agreement and the purchase of
the Notes and shall continue in full force and effect so long as any Note is
outstanding and until payment in full of all of Company's obligations hereunder
or thereunder. All obligations relating to indemnification hereunder shall
survive any termination of this Agreement and shall continue for the length of
any applicable statute of limitations.

         10.8     Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF MARYLAND, WITHOUT REGARD
TO CONFLICT OF LAWS PRINCIPLES.

         10.9     Jurisdiction, Consent to Service of Process

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<PAGE>

                           (a)      THE COMPANY HEREBY IRREVOCABLY AND
                  UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE
                  NONEXCLUSIVE JURISDICTION OF ANY (i) MARYLAND STATE COURT OR
                  TEXAS STATE COURT SITTING IN DALLAS COUNTY OR (ii) FEDERAL
                  COURT OF THE UNITED STATES OF AMERICA SITTING IN EITHER THE
                  STATE OF MARYLAND OR THE NORTHERN DISTRICT OF TEXAS, DALLAS
                  DIVISION OR (iii) ANY APPELLATE COURT FROM ANY OF THE
                  AFOREMENTIONED JURISDICTIONS, IN ANY ACTION OR PROCEEDING
                  ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE NOTES OR ANY
                  OTHER PURCHASE DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF
                  ANY JUDGMENT, AND EACH OF THE PARTIES HERETO HEREBY
                  IRREVOCABLY AND UNCONDITIONALLY AGREES THAT, TO THE EXTENT
                  PERMITTED BY APPLICABLE LAW, ALL CLAIMS IN RESPECT OF ANY SUCH
                  ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH
                  MARYLAND OR TEXAS COURT OR, TO THE EXTENT PERMITTED BY LAW, IN
                  SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A
                  FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE
                  CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT
                  ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.
                  NOTHING IN THIS AGREEMENT SHALL AFFECT ANY RIGHT THAT AGENT
                  AND PURCHASERS MAY OTHERWISE HAVE TO BRING ANY ACTION OR
                  PROCEEDING RELATING TO THIS AGREEMENT, THE NOTES OR ANY OTHER
                  PURCHASE DOCUMENT AGAINST THE COMPANY OR ITS PROPERTIES IN THE
                  COURTS OF ANY JURISDICTION.

                           (b)      THE COMPANY HEREBY IRREVOCABLY AND
                  UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY
                  AND EFFECTIVELY DO SO, ANY OBJECTION THAT IT MAY NOW OR
                  HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR
                  PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE
                  NOTES OR ANY OTHER PURCHASE DOCUMENT IN ANY MARYLAND STATE
                  COURT, TEXAS STATE COURT SITTING IN DALLAS COUNTY OR FEDERAL
                  COURT LOCATED IN EITHER THE STATE OF MARYLAND OR THE NORTHERN
                  DISTRICT OF TEXAS, DALLAS DIVISION. EACH OF THE PARTIES HERETO
                  HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
                  LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE
                  OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

                           (c)      EACH PARTY TO THIS AGREEMENT IRREVOCABLY
                  CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR
                  NOTICES IN SECTION 10.6 HEREOF. NOTHING IN THIS AGREEMENT WILL
                  AFFECT THE RIGHT OF ANY PARTY TO THIS

                                       68

<PAGE>

                  AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
                  LAW.

         10.10    Jury Trial Waiver. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY
RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING (I) TO ENFORCE OR DEFEND ANY
RIGHTS UNDER OR IN CONNECTION WITH THIS AGREEMENT, OR (II) ARISING FROM ANY
DISPUTE OR CONTROVERSY IN CONNECTION WITH OR RELATED TO THIS AGREEMENT AND
AGREES THAT ANY SUCH ACTION OR COUNTERCLAIM SHALL BE TRIED BEFORE A COURT AND
NOT BEFORE A JURY.

         10.11    Severability. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be prohibited
by or invalid under applicable law in any jurisdiction, such provision shall be
ineffective only to the extent of such prohibition or invalidity, without
invalidating any other provision of this Agreement.

         10.12    Headings. Article, section and subsection headings in this
Agreement are included for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose.

         10.13    Indemnity. Company hereby agrees to indemnify, defend and hold
harmless Agent and Purchasers and their officers, directors, employees, agents
and representatives, and their respective successors and assigns in connection
with any losses, claims, damages, liabilities and expenses, including reasonable
attorneys' fees, to which Agent or any Purchaser may become subject (other than
as a result of the gross negligence or willful misconduct of any such Person),
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or by reason of any investigation, litigation or other
proceedings related to or resulting from any act of, or omission by, Company or
its Affiliates or any officer, director, employee, agent or representative of
Company or its Affiliates with respect to the Transactions, the Notes, Charter
Documents, the By-laws or any agreements entered into in connection with any
such agreements, instruments or documents and to reimburse Agent and Purchasers
and each such Person and Affiliate, upon demand, for any legal or other expenses
incurred in connection with investigating or defending any such loss, claim,
damage, liability, expense or action. To the extent that the foregoing
undertakings may be unenforceable for any reason, Company agrees to make the
maximum contribution to the payment and satisfaction of indemnified liabilities
set forth in this Section 10.13 which is permissible under applicable law. This
indemnity and agreement to defend and hold harmless shall survive any
termination or satisfaction of the Notes or the sale, assignment or foreclosure
thereof or the sale, transfer or conveyance of all or part of the past and
present properties and facilities or any other circumstances which might
otherwise constitute a legal or equitable release or discharge, in whole or in
part, of Company under the Notes.

         10.14    Environmental Indemnity. Company, and its successors and
assigns, hereby jointly and severally release and discharge, and jointly and
severally agree to defend, indemnify and hold harmless, Agent, Purchasers and
their Affiliates (including their partners, subsidiaries, customers, guests, and
invitees, and the successors and assigns of all of the foregoing, and their
respective officers, employees and agents) from and against any and all
Environmental

                                       69

<PAGE>

Liabilities, whenever and by whomever asserted, to the extent that such
Environmental Liabilities are based upon, or otherwise relate to: (a) any
Condition at any time in, at, on, under, a part of, involving or otherwise
related to the Properties and Facilities (including any of the properties,
materials, articles, products, or other things included in or otherwise a part
of the Properties and Facilities); (b) any action or failure to act of any
Person, including any prior owner or operator of the Properties and Facilities
(including any of the properties, materials, articles, products, or other things
included in or otherwise a part of the Properties and Facilities), involving or
otherwise related to the Properties and Facilities or operations of Company; (c)
the Management of any Pollutant, material, article or product (including
Management of any material, article or product containing a Pollutant) in any
physical state and at any time, involving or otherwise related to the Properties
and Facilities or any property covered by clause (d) (including Management
either from the Properties and Facilities or from any property covered by clause
(d), and Management to, at, involving or otherwise related to the Properties and
Facilities or any property covered by clause (d)); (d) Conditions, and actions
or failures to act, in, at, on, under, a part of, involving or otherwise related
to any property other than the Properties and Facilities, which property was, at
or prior to the Closing Date, (i) acquired, held, sold, owned, operated, leased,
managed, or divested by, or otherwise associated with, (A) Company, (B) any of
Company's Affiliates, or (C) any predecessor or successor organization of those
identified in (A) or (B); or (ii) engaged in any tolling, contract manufacturing
or processing, or other similar activities for, with, or on behalf of Company;
(e) any violation of or noncompliance with or the assertion of any Lien under
the Environmental Laws, (f) the presence of any toxic or hazardous substances,
wastes or contaminants on, at or from the past and present properties and
facilities, including, without limitation, human exposure thereto; (g) any
spill, release, discharge or emission affecting the past and present properties
and facilities, whether or not the same originates or emanates from such
properties and facilities or any contiguous real estate, including, without
limitation, any loss of value of such properties and facilities as a result
thereof; or (h) a misrepresentation in any representation or warranty or breach
of or failure to perform any covenant made by Company in this Agreement. This
indemnity and agreement to defend and hold harmless shall survive any
termination or satisfaction of the Notes or the sale, assignment or foreclosure
thereof or the sale, transfer or conveyance of all or part of the past and
present properties and facilities or any other circumstances which might
otherwise constitute a legal or equitable release or discharge, in whole or in
part, of Company under the Notes.

         10.15    Counterparts. This Agreement may be executed in any number of
counterparts and by either party hereto on separate counterparts, each of which,
when so executed and delivered, shall be an original, but all such counterparts
shall together constitute one and the same instrument.

         10.16    Integration. This Agreement and the other Purchase Documents
set forth the entire understanding of the parties hereto with respect to all
matters contemplated hereby and supersede all previous agreements and
understandings among them concerning such matters. No statements or agreements,
oral or written, made prior to or at the signing hereof, shall vary, waive or
modify the written terms hereof.

         10.17    Confidentiality. Each of Agent and Purchasers agrees to
maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its and its Affiliates' directors, officers,
employees and agents, including accountants, legal

                                       70

<PAGE>

counsel and other advisors (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (b) to the
extent requested by any regulatory authority, (c) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, (d)
to any other party to this Agreement, (e) in connection with the exercise of any
remedies hereunder or any suit, action or proceeding relating to this Agreement
or the enforcement of rights hereunder, (f) subject to an agreement containing
provisions substantially the same as those of this Section 10.17 any assignee or
any prospective assignee of any of its rights or obligations under this
Agreement, (g) with the consent of Company, (h) to any Person that provides
financing to any Purchaser, or (i) to the extent such Information (i) becomes
publicly available other than as a result of a breach of this Section 10.17 or
(ii) becomes available to Agent or any Purchaser on a nonconfidential basis from
a source other than Company; provided, however, that with respect to disclosures
of Information pursuant to clauses (b) and (c) above, unless prohibited by law
or applicable court order, each Purchaser and Agent shall make a reasonable
attempt to notify Company of any request by any governmental agency or
representative thereof for disclosure of such Information after receipt of such
request, and, if reasonable, practicable, and permissible, before such
disclosure (it being understood that Company and its Subsidiaries may rely upon
this Section 10.17 in order to comply with Regulation FD promulgated by the SEC
as of the date hereof ("Regulation FD")). For the purposes of this Section
10.17, "Information" means all information (including material non-public
information within the meaning of Regulation FD) received from Company relating
to it or its business, other than any such information that is available to the
Agent or any Purchaser on a nonconfidential basis prior to disclosure by the
Company; provided that, in the case of information received from the Company
after the date hereof, such information is clearly identified at the time of
delivery as confidential. Any Person required to maintain the confidentiality of
Information as provided in this Section 10.17 shall be considered to have
complied with its obligation to do so if such Person has exercised the same
degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.

         10.18    Subordination. THE OBLIGATIONS EVIDENCED BY THIS AGREEMENT IS
SUBORDINATE (INCLUDING WITH RESPECT TO LIEN AND PAYMENT PRIORITY) IN THE MANNER
AND TO THE EXTENT SET FORTH IN THAT CERTAIN INTERCREDITOR AGREEMENT, DATED AS OF
THE DATE HEREOF, BY AND AMONG THE COMPANY, AGENT AND CERTAIN OTHER CREDITORS OF
THE COMPANY (AS AMENDED, MODIFIED OR RESTATED FROM TIME TO TIME, THE
"INTERCREDITOR AGREEMENT") TO THE INDEBTEDNESS AND OTHER LIABILITIES OWED BY THE
COMPANY UNDER AND PURSUANT TO THAT CERTAIN Credit Agreement, dated as of the
date hereof, by and among the Company, the lenders from time to time party
thereto, wells fargo bank texas, national association, as administrative agent
for such lenders, and JPMorgan Chase Bank, as agent for such lenders, as the
same may be amended or modified from time to time AND EACH RELATED "CREDIT
DOCUMENTs" (AS SUCH TERM IS DEFINED THEREIN), AND EACH HOLDER HEREOF, BY ITS
ACCEPTANCE HEREOF, ACKNOWLEDGES AND AGREES TO BE BOUND BY THE PROVISIONS OF THE
INTERCREDITOR AGREEMENT.

                                       71

<PAGE>

      [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGES FOLLOW]

                                       72

<PAGE>

                                SIGNATURE PAGE TO
                             NOTE PURCHASE AGREEMENT

         IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
the day and year first above written.

                                       COMPANY:

                                       ACE CASH EXPRESS, INC.

                                       By: /s/ JOE W. CONNER
                                          -------------------------------------
                                       Name: Joe W. Conner

                                       Title: Senior Vice President and
                                       Chief Financial Officer

                                       AGENT:

                                       AMERICAN CAPITAL FINANCIAL SERVICES, INC.

                                       By: /s/ JEFFREY N. MACDOWELL
                                           Jeffrey N. MacDowell
                                           Vice President

                                       PURCHASERS:

                                       AMERICAN CAPITAL STRATEGIES, LTD.

                                       By: /s/ JEFFREY N. MACDOWELL
                                           Jeffrey N. MacDowell
                                           Vice President

<PAGE>

         ACKNOWLEDGEMENT AND AGREEMENT:

         The undersigned have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written for
purposes of acknowledging their obligations hereunder as Loan Parties and, by so
executing this Agreement, the undersigned hereby agree to be bound by the terms
of this Agreement applicable to the Loan Parties or any Loan Party.

                                    LOAN PARTIES:

                                    Q.C. & G. FINANCIAL, INC.

                                    By: /s/ JOE W. CONNER
                                       ------------------------------------
                                    Name: Joe W. Conner
                                    Title: Sr. Vice President and CFO

                                    CHECK EXPRESS, INC.

                                    By: /s/ JOE W. CONNER
                                       ------------------------------------
                                    Name: Joe W. Conner
                                    Title: Sr. Vice President and CFO

                                    CHECK EXPRESS FLORIDA, INC.

                                    By: /s/ JOE W. CONNER
                                       ------------------------------------
                                    Name: Joe W. Conner
                                    Title: Sr. Vice President and CFO

                                    CHECK EXPRESS FINANCE, INC.

                                    By: /s/ JOE W. CONNER
                                       -------------------------------------
                                    Name: Joe W. Conner
                                    Title: Sr. Vice President and CFO

<PAGE>

                                    CHECK-X-CHANGE CORPORATION

                                    By: /s/ JOE W. CONNER
                                       ------------------------------------
                                    Name: Joe W. Conner
                                    Title: Sr. Vice President and CFO

                                    CHECK EXPRESS SOUTH CAROLINA, INC.

                                    By: /s/ JOE W. CONNER
                                       -----------------------------------
                                    Name: Joe W. Conner
                                    Title: Sr. Vice President and CFO

                                    PUBLIC CURRENCY, INC.

                                    By: /s/ JOE W. CONNER
                                       ------------------------------------
                                    Name: Joe W. Conner
                                    Title: Sr. Vice President and CFO

                                    CHECK EXPRESS USA, INC.

                                    By: /s/ JOE W. CONNER
                                       -----------------------------------
                                    Name: Joe W. Conner
                                    Title: Sr. Vice President and CFO

<PAGE>

                                      ANNEX

         Annex A                        Purchaser and Payment Information

<TABLE>
<CAPTION>
                                          SCHEDULES
                                          ---------
<S>                                   <C>
"Organizational Schedule"             (Section 5.1(a))
"Litigation Schedule"                 (Section 5.1(i))
"Environmental Schedule"              (Section 5.1(k))
"Properties Schedule"                 (Section 5.1(p))
"Intellectual Property Schedule"      (Section 5.1(q))
"Permitted Encumbrances Schedule"     (Section 7.2(b)(iv))
"Sale Leaseback"                      (Section 7.2(b)(v))
</TABLE>

<TABLE>
<CAPTION>
                                                      EXHIBITS
                                                      --------
<S>                                    <C>
EXHIBIT A-1                            Form of  Series A Note
EXHIBIT A-2                            Form of  Series B Note
EXHIBIT A-3                            Form of Series C Note
EXHIBIT A-4                            Form of Series D Note
EXHIBIT B                              Form of Security Agreement
EXHIBIT C                              Form of Pledge Agreement
EXHIBIT D                              Form of Guaranty Agreement
EXHIBIT E                              Form of Collateral Agency Agreement
EXHIBIT F-1                            Form of Perfection Letter--Bank (Long Form)
EXHIBIT F-2                            Form of Perfection Letter--Bank (Short Form)
EXHIBIT G                              Form of Perfection Letter--Armored Car Courier
EXHIBIT H                              Form of Compliance Certificate
EXHIBIT I                              Intercreditor Agreement
</TABLE>

<PAGE>

                                     ANNEX A

                       INFORMATION RELATING TO PURCHASERS

Name and Address
of Purchasers

AMERICAN CAPITAL STRATEGIES, LTD.
2 Bethesda Metro Center
14th Floor
Bethesda, MD  20814

                  All Notes issued to ACAS will be assigned to:

                  ACS FUNDING TRUST I
                  c/o AMERICAN CAPITAL STRATEGIES, LTD.,
                  as Servicer
                  2 Bethesda Metro Center, 14th Floor
                  Bethesda, MD  20814

                  (1)      All payments:

                           If by wire:

                           Account Name:  ACS Funding Trust I
                           Account #: 4000037515
                           Bank:  Wells Fargo Bank, N.A.
                           ABA #: 121000248

                  If by U.S. mail (make checks payable to "ACS Funding Trust
                  I"), to:

                           ACS Funding Trust I
                           NW 7941
                           P.O. Box 1450
                           Minneapolis, MN  55485-7941

                  If by overnight delivery service (e.g., FedEx, Airborne, UPS,
                  etc), to:

                           ACS Funding Trust I #7941
                           C/O REGULUS
                           1350 Energy Lane, Suite 200
                           St. Paul, MN 55108

<PAGE>

         with sufficient information
         to identify the source and
         application of such funds.

(2)      All notices of payments and
         written confirmations of
         such wire transfers:

                  American Capital Strategies, Ltd., as Servicer
                  2 Bethesda Metro Center, 14th Floor
                  Bethesda, Maryland  20814
                  Attn:  Comptroller
                  Telecopier:  (301) 654-6714

(3)      All other communications:

                  American Capital Strategies, Ltd., as Servicer
                  2 Bethesda Metro Center, 14th Floor
                  Bethesda, Maryland  20814
                  Attn:  Compliance Officer
                  Telecopier:  (301) 654-6714

         and to:

                  American Capital Strategies, Ltd.
                  2200 Ross, Suite 4500W
                  Dallas, Texas  75201
                  Attn:  Jeffrey N. MacDowell
                  Telecopier:  (214) 273-6635

<PAGE>

                                 SCHEDULE 5.1(a)

                             ORGANIZATIONAL SCHEDULE

The principal place of business of each of the Loan Parties is 1231 Greenway
Drive, Suite 600, Irving, Texas 75038.

<Table>
<Caption>
                                                                  STATES AUTHORIZED TO
                           COMPANY             JURISDICTION OF    CONDUCT BUSINESS
                                               INCORPORATION
                    ---------------------      ---------------    ---------------------
<S>                                            <C>                <C>
                    Ace Cash Express, Inc.           Texas        Alabama
                                                                  Alaska
                                                                  Arizona
                                                                  Arkansas
                                                                  California
                                                                  Colorado
                                                                  Connecticut
                                                                  Delaware
                                                                  Washington DC
                                                                  Florida
                                                                  Georgia
                                                                  Indiana
                                                                  Iowa
                                                                  Kansas
                                                                  Louisiana
                                                                  Maryland
                                                                  Michigan
                                                                  Minnesota
                                                                  Mississippi
                                                                  Missouri
                                                                  Montana
                                                                  Nebraska
                                                                  Nevada
                                                                  New Jersey
                                                                  New Mexico
                                                                  North Carolina
                                                                  Ohio
                                                                  Oklahoma
                                                                  Oregon
                                                                  Pennsylvania
                                                                  Rhode Island
                                                                  South Carolina
                                                                  Tennessee
                                                                  Texas
                                                                  Utah
                                                                  Vermont
                                                                  Virginia
                                                                  Washington
                                                                  Wisconsin
                                                                  Wyoming
                                                                  District of Columbia
</Table>

<PAGE>

<Table>
<Caption>
                                                JURISDICTION OF     STATES AUTHORIZED TO
                     NAME OF SUBSIDIARY         INCORPORATION         CONDUCT BUSINESS
                 ---------------------------    ---------------     --------------------
<S>                                             <C>                 <C>
                   Check Express, Inc. (all         Florida               Florida
                 outstanding shares of stock
                    owned by the Company)
                 ---------------------------    ---------------     --------------------

                 CHECK EXPRESS FLORIDA, INC.        Florida               Florida
                  (all outstanding shares of                            California
                     stock owned by Check                                 Georgia
                        Express, Inc.)                                     Ohio
                                                                           Texas
                 ---------------------------    ---------------     --------------------

                 CHECK EXPRESS FINANCE, INC.        Florida               Florida
                  (all outstanding shares of
                     stock owned by Check
                        Express, Inc.)
                 ---------------------------    ---------------     --------------------

                     CHECK EXPRESS SOUTH            Florida               Florida
                        CAROLINA, INC.                                    Indiana
                  (all outstanding shares of                           South Carolina
                     stock owned by Check
                        Express, Inc.)
                 ---------------------------    ---------------     --------------------

                   Check Express USA, Inc.          Florida               Florida
                  (all outstanding shares of
                     stock owned by Check
                        Express, Inc.)
                 ---------------------------    ---------------     --------------------

                  CHECK-X-CHANGE CORPORATION      California            California
                  (all outstanding shares of
                     stock owned by Check
                        Express, Inc.)
                 ---------------------------    ---------------     --------------------

                  Q. C. & G. FINANCIAL, INC.        Arizona               Arizona
                  (all outstanding shares of                               Texas
                 stock owned by the Company)                             Virginia
                 ---------------------------    ---------------     --------------------

                    PUBLIC CURRENCY, INC.         California            California
                  (all outstanding shares of
                 stock owned by the Company)
                 ---------------------------    ---------------     --------------------

                       ACE Funding, LLC            Delaware                Texas
                  (all membership interests
                    owned by the Company)
</Table>

o    The Company owns (a) 257,142.96 shares of Series A Convertible Preferred
     Stock represented by Certificate No. EP A-0003, (b) 210,000 shares of
     non-voting common stock represented by Certificate No. EP-18 and (c) 90,000
     shares of common stock represented by Certificate No. EP-17, of ePacific
     Incorporated, a Delaware corporation. All of the capital stock of ePacific
     Incorporated owned by the Company is subject to a Stockholders' Agreement
     dated as of March 30, 2000 which provides, among other things, that no
     stockholder of ePacific Incorporated may effect certain sales of such
     securities without affording the other stockholders of ePacific a right to
     participate in each such sale and no party to such Stockholders' Agreement
     may assign its rights thereunder without the prior written consent of the
     other parties thereto.

                                       2
<PAGE>

                                 SCHEDULE 5.1(i)

                               LITIGATION SCHEDULE

o    Jennafer Long v. Ace Cash Express, Inc.: This lawsuit regarding Goleta bank
     loans (the "Bank Loans") offered and made at the Company's locations in
     Florida was filed in Clay County, Florida and served on the Company on
     November 8, 2000. The plaintiff, for herself and others similar situated,
     alleges that the Bank Loans offered at the Company's locations in Florida
     were made by the Company rather than by Goleta and therefore those Bank
     Loans violated Florida usury laws and the offering of those Bank Loans
     involves misrepresentations and deceptive practices in violation of Florida
     law. The plaintiff seeks an unspecified amount of damages, including an
     amount equal to all interest charged on the Bank Loans made in Florida, the
     plaintiff's attorneys' fees, and court costs. The Company's attempt to
     remove this case to federal court was not successful. On October 2, 2001,
     the court granted Goleta's motion to intervene as a defendant in this
     lawsuit. The Company and Goleta filed a motion to dismiss the plaintiff's
     complaint on the basis that Goleta is the lender of the Bank Loans and,
     under federal law, is entitled to charge interest at the rate permitted by
     California law. But on March 20, 2002, the court denied that motion, and on
     April 19, 2002, each of the Company and Goleta filed its answer to the
     plaintiff's complaint. On February 10, 2003, the parties signed a
     Stipulation to stay the action pending consummation of present settlement
     negotiations regarding Beverly Purdie v. ACE Cash Express, Inc. (described
     below).

o    Vonnie T. Hudson v. Ace Cash Express, Inc. et al.: This lawsuit regarding
     the Bank Loans offered and made at the Company's locations in Indiana was
     filed on September 11, 2001 in the U.S. District Court for the Southern
     District of Indiana. This lawsuit was filed against the Company; Goleta;
     the Company's Chairman of the Board, Raymond C. Hemmig; the Company's Chief
     Executive Officer, Donald H. Neustadt; the Company's President & Chief
     Operating Officer, Jay B. Shipowitz; and a former employee of the Company.
     The plaintiff alleged violations of (1) the Indiana UCCC and the Indiana
     "loansharking" statute, because the interest charged for the Bank Loans
     exceeded the finance charges permitted by those statutes, (2) the federal
     TILA, Regulation Z, and the Indiana UCCC, because the disclosures to
     borrowers of Bank Loans did not comply with the disclosure requirements of
     those laws, and (3) the federal Racketeer Influenced Corrupt Organizations
     (RICO) Act. In the complaint the plaintiff purported to represent a class
     of all persons to whom a Bank Loan has been made at any location of the
     Company in Indiana (a) since September 11, 1999, regarding the
     excess-charge claims, (b) since September 11, 2000, regarding the
     disclosure-violation claims, and (c) since September 11, 1997, regarding
     the federal RICO Act claims. The plaintiff sought relief of various kinds,
     including (i) for the members of the class of plaintiffs who were allegedly
     charged excessive interest, an order declaring the Loans to them "void,"
     the refund of all finance charges or interest paid by them in excess of the
     maximum finance charges permitted under the Indiana UCCC, and a penalty (to
     be determined by the court) in a maximum amount equal to the greater of
     either all of the finance charges or interest received from them or up to
     ten times the amount of all excess finance charges or interest received
     from them; (ii) for the members of the class of plaintiffs who allegedly
     did not receive proper

<PAGE>

     disclosures under the federal TILA, Regulation Z, and the Indiana UCCC,
     statutory damages of $500,000 each for violations of those statutes; (iii)
     for the members of the class of plaintiffs allegedly damaged because of
     violations of the RICO Act, an amount equal to three times those damages;
     and (iv) the plaintiff's attorneys' fees and court costs. On December 17,
     2001, the defendants moved to dismiss the plaintiff's complaint, and on May
     30, 2002, the court granted the motion. Based on its review of the
     complaint and other filed documents, the court concluded that Goleta made
     the Bank Loan to the plaintiff and then sold a participation interest in
     that Bank Loan to the Company, so that the claims asserted in the complaint
     were not sufficient to entitle the plaintiff to any damages or other legal
     relief. The court, however, afforded the plaintiff an opportunity to amend
     her complaint to assert legally sufficient claims. On June 25, 2002, the
     plaintiff filed an amended complaint that was substantially similar to the
     complaint that was dismissed, except the amended complaint did not name
     Goleta as a defendant and did not assert any disclosure-violation claims.
     On July 8, 2002, the Company and the remaining defendants filed a motion to
     dismiss the amended complaint, asserting that the amended complaint did not
     allege sufficient new facts to justify relief and that the court's initial
     decision was dispositive. On September 30, 2002, the court entered an order
     dismissing the amended complaint, with prejudice. On October 15, 2002, the
     plaintiff filed a notice of appeal to the United States Court of Appeals
     for the Seventh Circuit. On January 15, 2003 the plaintiff's initial brief
     in his appeal of the trial court's dismissal of his complaint was filed.
     The parties met via telephone for a court-approved settlement conference on
     February 28, 2003. The parties have agreed to stay the proceedings in the
     plaintiff's appeal pending consummation of present settlement negotiations
     regarding Beverly Purdie v. ACE Cash Express, Inc. (described below).

o    Rufus Patricia Brown v. Ace Cash Express, Inc. et al. This lawsuit
     regarding both the Company's former "payday loan" activities and the Bank
     Loans offered and made at the Company's locations in Maryland was filed on
     August 20, 2001 in the Circuit Court for Baltimore City, Maryland. On
     September 12, 2001, the plaintiff filed an amended complaint against the
     Company and unnamed franchisees of the Company. In the complaint, the
     plaintiff purports to represent a class of all consumers with whom the
     Company has entered into any payday-loan transaction or to whom a Bank Loan
     has been made at any location of the Company in Maryland since April 1,
     2000. The plaintiff alleges that the defendants' loan-related activities
     violate the Maryland usury laws, the Maryland Consumer Loan Law, the
     Maryland Unsecured Closed End Credit Regulation Act, and the Maryland
     Consumer Protection Act and are unconscionable under Maryland law. The
     plaintiff seeks relief of various kinds, including a permanent injunction
     against any further alleged illegal activities, an order that all
     obligations of the class of plaintiffs to the defendants are void, the
     return (as restitution) to the class of plaintiffs of all amounts paid to
     the defendants, an order dissolving the Company and prohibiting all
     defendants from conducting any further financial services business, the
     disgorgement and return of all profits from the loan-related activities,
     the plaintiff's attorneys' fees and expenses, and court costs. On September
     7, 2001, the Company removed this lawsuit to the United States District
     Court for the District of Maryland, but on November 14, 2001, the federal
     court granted the plaintiff's motion to remand this lawsuit back to the
     Circuit

                                       2
<PAGE>

     Court of Baltimore City. On January 3, 2002, Goleta filed a motion to
     intervene as a defendant in this lawsuit, and the court granted that motion
     on January 8, 2002.

o    Beverly Purdie v. Ace Cash Express, Inc. et al.: This lawsuit regarding
     both the Company's former "payday loan" activities and the Bank Loans
     offered and made at the Company's locations was filed on September 6, 2001,
     in the United States District Court for the Northern District of Texas. The
     original complaint named as defendants the Company and certain executive
     officers and directors and a former employee of the Company. As the result
     of two amended complaints, however, only the Company and Goleta are
     currently defendants in this lawsuit. In her second amended complaint, the
     plaintiff purports to represent a class of all consumers in the United
     States with whom the Company has entered into any payday-loan transaction
     or to whom a Bank Loan has been made at any location of the Company since
     September 6, 1997, as well as sub-classes of persons who have engaged in
     those kinds of transactions with the Company or at the Company's locations
     and are alleged to be victims of usury or of unfair or deceptive lending
     practices under the laws of various states in the United States during the
     time periods within the various applicable statutes of limitations. The
     plaintiffs allege that the defendants' loan-related activities violate the
     federal RICO Act and the laws and regulations of various states regarding
     usury, deceptive trade practices (including the Texas Deceptive Trade
     Practices Act), and other consumer protections. The plaintiff seeks relief
     of various kinds, including a permanent injunction against any further
     alleged illegal activities; the return (as restitution) to the class and
     sub-classes of plaintiffs of all amounts paid to the defendants; damages
     equal to three times the amount of all fees and interests paid by the class
     & sub-classes of plaintiffs since Sept. 6, 1997; punitive damages of at
     least $250 million; the plaintiff's attorneys' fees; and court costs. On
     January 18, 2002, the Company and Goleta filed a motion to dismiss the
     second amended complaint, asserting that the federal RICO Act claims were
     legally deficient and should be dismissed and that, if those claims are
     dismissed, the court should not retain jurisdiction of the remaining
     state-law claims. On October 29, 2002, the court granted the Company's and
     Goleta's motion to dismiss the plaintiff's complaint. The court found that
     the plaintiff did not allege sufficient facts to support her federal RICO
     claims and, accordingly, dismissed those claims with prejudice. In the
     absence of federal-law claims, the court declined to retain jurisdiction
     over the plaintiff's state-law claims and, accordingly, dismissed those
     claims without prejudice. On November 12, 2002, the plaintiff filed a
     motion with the trial court requesting that the court vacate its judgment,
     amend its order dismissing her complaint, and grant the plaintiff
     permission to file an amended complaint. The Company and Goleta currently
     have until April 1, 2003, to respond to the plaintiff's motion. The parties
     are engaged in ongoing settlement discussions.

o    Hale v. Ace Cash Express, Inc.: On December 18, 2002, the Company was
     served with a lawsuit that had originally been filed (but not served) in
     late October 2002 in the United States District Court for the Western
     District of Virginia. The amended class action complaint served on the
     Company names only the Company as a defendant and relates to the Company's
     activities in connection with the short-term consumer loans of Goleta
     offered at the Company's stores in Virginia between April 1, 2000 and
     October 10, 2002.

                                       3
<PAGE>

     The plaintiff, for himself and others similarly situated, alleges that the
     Company's loan-related activities during that period violated the federal
     RICO Act, the Virginia Consumer Finance (or Small Loan) Act, the Virginia
     Payday Loan Act, and the Virginia Consumer Protection Act and constituted
     fraud. The plaintiff seeks actual and punitive damages of various kinds,
     including (under the RICO Act) an amount equal to three times all of the
     Company's proceeds from the loans made in Virginia during the approximate
     two and one-half years; an amount equal to three times the actual damages
     or $1,000, whichever is greater, for each violation of the Virginia
     Consumer Protection Act; attorneys' fees & court costs. The key issue in
     this lawsuit is whether the Company or Goleta should properly be
     characterized as the lender or the maker of the short-term loans. Contrary
     to the plaintiff's contentions, the Company maintains that Goleta was the
     lender and that, because Goleta was a national bank located in California,
     the short-term loans were governed by federal and California law, not
     Virginia law. On February 5, 2003, the Company moved to compel arbitration
     and to stay all proceedings until completion of arbitration. The plaintiff
     has filed an opposition to the Company's motion to compel arbitration.

o    Ace Cash Express, Inc. v. Valley Check Cashiers, Inc., Jeffrey D.
     Silverman, and Morris Silverman: On November 27, 2001, the Company filed
     this lawsuit in state court in Travis County, Texas, seeking damages
     relating to the defendants' misrepresentations and breaches of warranties
     in an Asset Purchase Agreement between the Company and the defendants, and
     certain other entities affiliated with the defendants, dated as of November
     10, 2000. Under the Asset Purchase Agreement, the Company acquired the
     assets of 107 check-cashing and retail financial services locations owned
     and managed by the defendants and their affiliated entities for a total
     purchase price of $29.7 million in cash. Eleven of the acquired locations
     were in third-party grocery stores, operated under the "Handy Andy" name,
     in and around San Antonio, Texas. Following the foreclosure and sale of
     those grocery stores by the secured creditor of the grocery store operator,
     the Company (in cooperation with the sellers under the Asset Purchase
     Agreement) instituted litigation against that creditor and its purchaser in
     January 2001 to maintain the Company's right to operate in those locations.
     At a trial in April 2001, the court found that the lease agreement under
     which the Company claimed the right to occupy those eleven locations, which
     had been assigned to the Company by the defendants and their affiliated
     entities, was not enforceable under Texas law. The court therefore ordered
     the Company to vacate those eleven locations, which the Company did in June
     2001. Because of the court's finding, the Company requested the defendants
     to satisfy their monetary obligations to the Company, based on their
     representations and warranties, regarding those locations. When it appeared
     that further negotiations regarding the Company's request would be
     unsuccessful, the Company filed this lawsuit to recover the damages
     suffered in connection with, and as a result of, the loss of those eleven
     locations. In its complaint, the Company seeks actual damages in excess of
     $2 million. On January 14, 2002, the defendants filed their answer denying
     all of the Company's material claims. On October 15, 2002, Jeffrey
     Silverman and Morris Silverman, but not Valley Check Cashiers, Inc., filed
     a motion for summary judgment requesting the court to dismiss the Company's
     complaint against them. The hearing on such motion was held on November 12,
     2002. By letter dated December 13, 2002, the court advised the parties that
     it would grant the motion to dismiss the Company's complaint against those
     two defendants. No formal order has yet been submitted to or signed by the
     court, however. The Company and the defendants have agreed to sever the
     Silvermans' summary judgment to allow the Company to appeal it and have
     further agreed to stay the Company's remaining claims against Valley Check
     Cashiers pending the outcome of that appeal.

                                       4
<PAGE>

o    Ace Cash Express, Inc. v. Illinois Union Insurance Company, and Westchester
     Surplus Lines Insurance Company: On May 17, 2002, the Company filed suit
     against Illinois Union Insurance Company and Westchester Surplus Lines
     Insurance Company for failing to defend and indemnify the Company for the
     Goleta Bank Loan related lawsuits as the Company claims it was insured for
     the Bank Lone business under the insurance policies. The petition alleges
     breach of contract - failure to indemnify; breach of contract - failure to
     defend; a declaratory judgment declaring the insurance company's ongoing
     obligation to pay the defense costs of the lawsuits; an award for attorney
     fees for the services of legal counsel to pursue this action and an award
     of all damages the Company has suffered as a result of the alleged breaches
     of insurance contracts with the two companies including prejudgment and
     post-judgment interest and statutory penalties. Each of the defendants
     generally denied the Company's allegations. On September 13, 2002, the
     defendants filed a counterclaim requesting judgment declaring, inter alia,
     no coverage exists for the claims set forth in each of the Goleta Bank Loan
     related lawsuits.

o    Ace Currency Exchange, Inc. v. Ace Cash Express, Inc.; alleging breach of
     Consent Decree dated May 23, 1993 in Ace Currency Exchange, Inc. v. Ace
     Cash Express, Inc. This lawsuit regarding the Company's use of the name
     "Ace" in the City of Baltimore, Maryland and Baltimore, Howard and a
     portion of Anne Arundel counties, Maryland in alleged violation of that
     certain Consent Decree dated May 23, 1993 was filed on or about March 4,
     2003 in the United States District Court for the District of Maryland. The
     plaintiff alleges the Company's violation of the Consent Decree and seeks
     that (1) the Company be held in contempt of court, (2) the Company pay
     compensatory damages of $500,000 plus interest and costs, (3) the Company
     be enjoined from continuing to violate the Consent Decree, (4) the Company
     account to and pay the plaintiff all profits received during the period of
     violation and that such damages be trebled and (5) costs, attorneys' fees
     and other appropriate relief be awarded to the plaintiff against the
     Company.

o    The Company and its Subsidiaries are also involved from time to time in
     various legal proceedings incidental to the conduct of their business.
     Management believes that none of these legal proceedings will result in any
     material impact on the Company's financial condition and results of
     operations.

5.1(j)

o    See Ace Currency Exchange, Inc. v. Ace Cash Express, Inc.; alleging breach
     of Consent Decree dated May 23, 1993 in Ace Currency Exchange, Inc. v. Ace
     Cash Express, Inc. described above. Court order to resolve lawsuit in
     accordance with an Agreement dated October 24, 1989, between the Borrower
     and Ace Currency Exchange, Inc. In that Agreement, the Borrower agreed to
     do the following in the City of Baltimore, Maryland, in the counties of
     Baltimore and Howard, Maryland, and in a portion of the County of Anne
     Arundel, Maryland: (1) cease using A.C.E. in all permanent storefront
     signage, (2) cease using A.C.E. on all temporary banners and signage
     (though temporary posters may include the Borrower's logo with A.C.E.
     appearing not larger than approximately 1 1/2"), (3) cease reference to ACE
     when answering the telephone at its locations, and (4) cease reference to
     ACE in all future media advertising.

                                       5
<PAGE>

o    Settlement Agreement between Ace Cash Express, Inc. and the Ohio Division
     of Financial Institutions dated as of December 31, 2002 - See Company's
     Form 8-K dated as of December 20, 2002 filed with the Securities and
     Exchange Commission ("SEC") on January 6, 2003

o    Final Order of the State of Florida, Department of Banking and Finance,
     Division of Securities and Finance dated December 30, 2002 In re Ace Cash
     Express, Inc. d/b/a Ace America's Cash Express - See Company's Form 8-K
     dated as of December 20, 2002 filed with the SEC on January 6, 2003

o    Consent Judgment dated December 13, 2002 in State of North Carolina ex rel.
     Roy Cooper, Attorney General and Joseph A. Smith, Jr., Commissioner of
     Banks v. Ace Cash Express, Inc. - See Company's Form 10-Q for the quarterly
     period ended December 31, 2002 filed with the SEC on February 14, 2003

o    Consent Order In the Matter of Ace Cash Express, Inc., Agent and Bank
     Service Provider for Goleta National Bank, dated October 25, 2002 - See
     Company's Form 8-K dated as of October 25, 2002 filed with the SEC on
     November 5, 2002

o    Consent Decree dated May 6, 2002 - State of Colorado, ex rel. Ken Salazar,
     Attorney General for the state of Colorado, and Laura E. Udis,
     Administrator, Uniform Consumer Credit Code v. Ace Cash Express, Inc. - See
     Company's Form 10-Q for the quarterly period ended March 31, 2002 filed
     with the SEC on May 15, 2002

o    Agreed Final Judgment and Permanent Injunction in Western Union Corporation
     v. Ace Cash Express, Inc., dated March 27, 1990 - Injunction prohibiting
     the use of the slogan "We Do Western Union Only Better" in connection with
     the promotion and advertisement of money transfer services.

o    The Company has supplied information regarding certain of its payday loans
     to the Federal Trade Commission ("FTC") in response to the FTC's letter
     dated December 12, 2002.

                                       6
<PAGE>

                                 SCHEDULE 5.1(k)

                             ENVIRONMENTAL SCHEDULE

o    With regard to leased Properties and Facilities, the Company does not have
     any knowledge with respect to the presence or absence any USTs, PCBs, lead
     paint or asbestos located in, at, on, under or a part of, or otherwise
     related thereto and the Company has not undertaken any investigation of
     such Properties and Facilities with respect thereto.

<PAGE>

                                 SCHEDULE 5.1(p)

                               PROPERTIES SCHEDULE

<Table>
<S>                                                  <C>                          <C>              <C>
           25320 NORTH BROADWAY.                     DENVER                       CO               80203
           406499 LEETSDALE DR.                      DENVER                       CO               80224
           411407 W. 84TH ST.                        FEDERAL HEIGHTS              CO               80221
           432896 S. BROADWAY                        ENGLEWOOD                    CO               80110
           461305 KRAMERIA UNIT J                    DENVER                       CO               80220
           47862 S BUCKLEY RD                        AURORA                       CO               80017
           483375 COLORADO BLVD                      DENVER                       CO               80205
           491155 SOUTH HAVANA                       AURORA                       CO               80012
           52640 SIXTEENTH                           DENVER                       CO               80202
           5413110 E. MISSISSIPPI AVE.               AURORA                       CO               80012
           5710390 E. COLFAX                         AURORA                       CO               80010
           5814410 E 6TH AVENUE                      AURORA                       CO               80010
           591105 SOUTH WADSWORTH                    LAKEWOOD                     CO               80226
           60636-B PEORIA STREET                     AURORA                       CO               80011
           6111703 E. COLFAX                         AURORA                       CO               80010
           74361 S. COLORADO BLVD                    DENVER                       CO               80222
           769315 W. RALSON ROAD                     ARVADA                       CO               80002
           792061 S. FEDERAL BLVD                    DENVER                       CO               80219
           803108 S. PARKER ROAD                     AURORA                       CO               80014
           813912 S. BROADWAY                        ENGLEWOOD                    CO               80110
           828800 WASHINGTON                         THORNTON                     CO               80229
           8415037 E. COLFAX AVE                     AURORA                       CO               80011
           876585 WEST COLFAX AVENUE                 LAKEWOOD                     CO               80214
           881965 WEST 38TH AVENUE                   DENVER                       CO               80204
           892101 E. COLFAX AVE                      DENVER                       CO               80206
           916125 E. 72ND PLACE                      COMMERCE CITY                CO               80022
           937200 FEDERAL BLVD                       WESTMINSTER                  CO               80030
           972401 W. ALAMEDA AVENUE                  DENVER                       CO               80223
           983248 CHAMPA STREET                      DENVER                       CO               80205
          1034134 AUSTIN BLUFFS PKWY                 COLORADO SPRINGS             CO               80918
          1075520 SOUTH HIGHWAY 85-87                COLORADO SPRINGS             CO               80911
          1102322 E. PLATTE AVENUE                   COLORADO SPRINGS             CO               80909
          111498 N. MURRAY BLVD                      COLORADO SPRINGS             CO               80909
          1122064 S. ACADEMY BLVD.                   COLORADO SPRINGS             CO               80916
          113893 N. ACADEMY BLVD.                    COLORADO SPRINGS             CO               80909
          1143279 S ACADEMY BLVD                     COLORADO SPRINGS             CO               80916
          1153014 N NEVADA AVE                       COLORADO SPRINGS             CO               80907
          1161640 SOUTH CIRCLE DR.                   COLORADO SPRINGS             CO               80910
          1171406 S. NEVADA AVE.                     COLORADO SPRINGS             CO               80906
          1183058 W. NORTHERN AVE.                   PUEBLO                       CO               81005
          1193003 NORTH ELIZABETH, #B                PUEBLO                       CO               81008
          120829 CHEYENNE MEADOWS RD.                COLORADO SPRINGS             CO               80906
</Table>

<PAGE>

<Table>
<S>                                                  <C>                          <C>              <C>
          1225863 CONSTITUTION AVE.                  COLORADO SPRINGS             CO               80915
          1231453 SOUTH MURRAY BLVD.                 COLORADO SPRINGS             CO               80916
          1246910 N. ACADEMY BLVD.                   COLORADO SPRINGS             CO               80918
          1503924 WADSWORTH                          WHEAT RIDGE                  CO               80033
          1513150 S. PEORIA ST.                      AURORA                       CO               80014
          1525335 WEST 38TH AVE.                     DENVER                       CO               80212
          1541410 SOUTH SHERIDAN BLVD.               DENVER                       CO               80214
          1556006 W. ALAMEDA AVENUE                  LAKEWOOD                     CO               80026
          1563913B - EAST 120TH AVENUE               THORNTON                     CO               80233
          1572120 S. BROADWAY                        DENVER                       CO               80210
          2016025 N 27TH AVENUE                      PHOENIX                      AZ               85017
          2024948 W INDIAN SCHOOL ROAD               PHOENIX                      AZ               85031
          2032835 N 16TH STREET                      PHOENIX                      AZ               85006
          2063458 W. VAN BUREN                       PHOENIX                      AZ               85009
          2071905 W INDIAN SCHOOL RD                 PHOENIX                      AZ               85015
          2092410 S. 6TH AVENUE                      SOUTH TUCSON                 AZ               85713
          210454 W. VALENCIA                         TUCSON                       AZ               85706
          2112081 N. ARIZONA AVE.                    CHANDLER                     AZ               85225
          2126018 S. CENTRAL AVENUE                  PHOENIX                      AZ               85040
          2174338 WEST THOMAS ROAD                   PHOENIX                      AZ               85031
          2192709 W. VAN BUREN                       PHOENIX                      AZ               85009
          2203030 E. 22ND STREET                     TUCSON                       AZ               85713
          2221775 W. AJO WAY                         TUCSON                       AZ               85713
          2235114 W. MCDOWELL RD                     PHOENIX                      AZ               85035
          224450 S. COUNTRY CLUB                     MESA                         AZ               85202
          2256020 N. 59TH AVENUE                     GLENDALE                     AZ               85301
          2271225 W. ST. MARY'S                      TUCSON                       AZ               85713
          228635 W. VALENCIA                         TUCSON                       AZ               85706
          2322032 E. THOMAS ROAD                     PHOENIX                      AZ               85006
          2341928 W. BUCKEYE ROAD                    PHOENIX                      AZ               85009
          2366544 W. THOMAS RD                       PHOENIX                      AZ               85033
          2374430 E. MCDOWELL RD.                    PHOENIX                      AZ               85008
          2403770 N. 7TH STREET                      PHOENIX                      AZ               85014
          2411029 N. SCOTTSDALE RD.                  SCOTTSDALE                   AZ               85257
          2459401 N. CAVE CREEK RD.                  PHOENIX                      AZ               85020
          2462716 W. INDIAN SCHOOL RD.               PHOENIX                      AZ               85017
          247760 N. COUNTRY CLUB                     MESA                         AZ               85201
          2498385 NORTHWEST GRAND                    PEORIA                       AZ               85345
          250719 E. FORT LOWEL                       TUCSON                       AZ               85719
          2511830 EAST IRVINGTON                     TUCSON                       AZ               85714
          25215249 NORTH 32ND STREET                 PHOENIX                      AZ               85032
          2533205 E. MCDOWELL ROAD                   PHOENIX                      AZ               85008
          2578210 W. INDIAN SCHOOL RD                PHOENIX                      AZ               85033
          2614727 E. SOUTHERN                        PHOENIX                      AZ               85040
          2635011 NORTH 35TH AVENUE                  PHOENIX                      AZ               85017
          267424 YARBROUGH SUITE A                   EL PASO                      TX               79915
          268835 N. ZARAGOZA                         EL PASO                      TX               79907
</Table>

                                       2
<PAGE>

<Table>
<S>                                                  <C>                          <C>              <C>
          26912135 MONTWOOD #103                     EL PASO                      TX               79936
          2736114 N. 59TH AVENUE                     GLENDALE                     AZ               85301
          2746402 S. CENTRAL                         PHOENIX                      AZ               85041
          275777 N. ARIZONA AVENUE                   CHANDLER                     AZ               85225
          2763544 W. GLENDALE AVENUE                 PHOENIX                      AZ               85051
          2776750 E. MAIN                            MESA                         AZ               85205
          280758 S. ALMA SCHOOL ROAD                 MESA                         AZ               85210
          2828838 VISCOUNT                           EL PASO                      TX               79925
          2838220 B DYER STREET                      EL PASO                      TX               79904
          2844700 MONTANA ST.                        EL PASO                      TX               79903
          28677 SOUTH KOLB AVENUE                    TUCSON                       AZ               85710
          2871750 S. RURAL RD.                       TEMPE                        AZ               85281
          2887500 N. MESA                            EL PASO                      TX               79912
          290400 W. 16TH ST.                         YUMA                         AZ               85364
          291450 N. GRAND COURT                      NOGALES                      AZ               85621
          292101 FIRST ST., #2                       DOUGLAS                      AZ               85607
          2931965 N. GRAND AVE.                      NOGALES                      AZ               85621
          294205 NORTH MAIN ST                       SAN LUIS                     AZ               85349
          295570 W. MARIPOSA                         NOGALES                      AZ               85621
          2964750 E. BROADWAY                        PHOENIX                      AZ               85040
          29720 E. BUCKEYE RD.                       PHOENIX                      AZ               85004
          298421 EAST BROADWAY                       MESA                         AZ               85204
          2994040 N. 24TH ST.                        PHOENIX                      AZ               85016
          3011604 ELM ST STE A                       DALLAS                       TX               75201
          3081515 S BUCKNER BLVD                     DALLAS                       TX               75217
          3102980 W. NORTHWEST HWY                   DALLAS                       TX               75220
          3113504 W. WALNUT ST.                      GARLAND                      TX               75042
          3122643 S. HAMPTON ROAD                    DALLAS                       TX               75224
          3134119 E LANCASTER AVE                    FORT WORTH                   TX               76103
          3143171 DENTON HIGHWAY                     HALTOM CITY                  TX               76117
          3153117 GRAND AVE                          DALLAS                       TX               75215
          3163204 N MAIN ST                          FORT WORTH                   TX               76106
          3177100 HWY. 80 WEST                       FORT WORTH                   TX               76116
          3183029 S. FREEWAY                         FORT WORTH                   TX               76104
          3191401 BROWN TRAIL                        BEDFORD                      TX               76021
          320201 W. MAIN ST                          GRAND PRAIRIE                TX               75050
          321500 N. GALLOWAY AVE                     MESQUITE                     TX               75149
          3233418 OAK LAWN AVE                       DALLAS                       TX               75219
          3245111 GREENVILLE AVE.                    DALLAS                       TX               75206
          3281914 EAST BELTLINE ROAD                 CARROLLTON                   TX               75006
          32911355 HARRY HINES BLVD                  DALLAS                       TX               75229
          330604 W RANDOL MILL ROAD                  ARLINGTON                    TX               76011
          3312243 S COOPER ST                        ARLINGTON                    TX               76013
          334903 NORTHWEST HWY                       GARLAND                      TX               75041
          3354003 W CAMP WISDOM RD                   DALLAS                       TX               75237
          3373658 NORTH BELTLINE RD                  IRVING                       TX               75038
          3383936 S. POLK ST                         DALLAS                       TX               75224
</Table>

                                       3
<PAGE>

<Table>
<S>                                                  <C>                          <C>              <C>
          3411409 N. BELTLINE ROAD                   IRVING                       TX               75061
          3422230 N. COLLINS ST                      ARLINGTON                    TX               76011
          3442001 W. AIRPORT FRWY                    IRVING                       TX               75062
          3452302 GUS THOMASSON RD                   DALLAS                       TX               75228
          3463004 W. 7TH STREET                      FORT WORTH                   TX               76107
          34812921 JUPITER ROAD                      DALLAS                       TX               75238
          3503159 S GARLAND AVE                      GARLAND                      TX               75041
          3513302 HARWOOD RD                         BEDFORD                      TX               76021
          35214320 MARSH LANE                        ADDISON                      TX               75001
          3532810 E. TRINITY MILLS RD.               CARROLLTON                   TX               75006
          3549730 ABRAMS ROAD                        DALLAS                       TX               75243
          3552905 ARKANSAS LANE                      GRAND PRAIRIE                TX               75052
          356506 E. AVENUE K                         GRAND PRAIRIE                TX               75050
          3574801 S COOPER ST                        ARLINGTON                    TX               76017
          35814902 PRESTON ROAD                      DALLAS                       TX               75254
          3593708 ALTA MESA BLVD                     FORT WORTH                   TX               76133
          3609096 HIGHWAY 80 WEST                    FORT WORTH                   TX               76116
          36313519 MONTFORT DR                       DALLAS                       TX               75240
          366383 EAST PIPELINE ROAD                  BEDFORD                      TX               76022
          3671915 W TARRANT ROAD                     GRAND PRAIRIE                TX               75050
          370615 N. COLLINS ST                       ARLINGTON                    TX               76001
          3721221 WOODHAVEN BLVD.                    FORT WORTH                   TX               76112
          3753317 WALNUT HILL LANE                   IRVING                       TX               75038
          3764303 S LANCASTER RD                     DALLAS                       TX               75216
          37710806 GARLAND ROAD                      DALLAS                       TX               75218
          378800 E ARAPAHO RD                        RICHARDSON                   TX               75081
          3801095 WYNNEWOOD VILLAGE SH               DALLAS                       TX               75224
          3816245 RUFE SNOW DR                       WATAUGA                      TX               76148
          3828224 PARK LANE                          DALLAS                       TX               75231
          3841120 W CAMP WISDOM RD                   DALLAS                       TX               75232
          3858010 SPRING VALLEY RD                   DALLAS                       TX               75240
          3862500 AVE. K                             PLANO                        TX               75074
          3881060 NORTH MAIN ST                      EULESS                       TX               76039
          3891125 WEST 6TH STREET                    IRVING                       TX               75060
          390512 SOUTH GARLAND AVE.                  GARLAND                      TX               75040
          3926526 SKILLMAN STREET                    DALLAS                       TX               75231
          393105 S CENTRAL EXPRESSWAY                RICHARDSON                   TX               75080
          3953801 GUS THOMASSON RD                   MESQUITE                     TX               75150
          3965441 ALPHA ROAD                         DALLAS                       TX               75240
          3974346 MAPLE AVE.                         DALLAS                       TX               75219
          3982544 E ABRAM ST                         ARLINGTON                    TX               76010
          3999778 FOREST LANE                        DALLAS                       TX               75243
          4029690 MESA DR                            HOUSTON                      TX               77078
          4041801 ELLA BLVD                          HOUSTON                      TX               77008
          4092015 YALE STREET                        HOUSTON                      TX               77008
          4105510 BELLAIRE BLVD                      HOUSTON                      TX               77081
          4116883 SOUTH GESSNER RD                   HOUSTON                      TX               77036
</Table>

                                       4
<PAGE>

<Table>
<S>                                                  <C>                          <C>              <C>
          4135616 W. TIDWELL DR                      HOUSTON                      TX               77091
          4247917 WESTHEIMER ROAD                    HOUSTON                      TX               77063
          4257518 RICHMOND AVENUE                    HOUSTON                      TX               77063
          4266436 BELLAIRE BLVD                      HOUSTON                      TX               77074
          428732 GREENS ROAD                         HOUSTON                      TX               77060
          4294507 FM 1960 RD W                       HOUSTON                      TX               77069
          4317542 W.BELFORT STREET                   HOUSTON                      TX               77071
          43211142 WESTHEIMER RD                     HOUSTON                      TX               77042
          4341205 BAY AREA BLVD.                     HOUSTON                      TX               77058
          4352619 RED BLUFF RD                       PASADENA                     TX               77506
          4366848 SPENCER HWY                        PASADENA                     TX               77505
          43813946 WESTHEIMER RD                     HOUSTON                      TX               77077
          44011843 BISSONNET ST                      HOUSTON                      TX               77099
          44111103 BRIAR FOREST DR                   HOUSTON                      TX               77042
          44213509 NORTHWEST FREEWAY                 HOUSTON                      TX               77040
          4439301 BISSONNET                          HOUSTON                      TX               77074
          4459 UVALDE ROAD                           HOUSTON                      TX               77015
          44612331 FONDREN RD.                       HOUSTON                      TX               77035
          44719767 HIGHWAY 59                        HUMBLE                       TX               77338
          44810944 FUQUA ST                          HOUSTON                      TX               77089
          4499201 CULLEN BLVD.                       HOUSTON                      TX               77051
          4533516 S SHEPHERD DR                      HOUSTON                      TX               77098
          454203 WEST GREENS ROAD                    HOUSTON                      TX               77067
          45510990 I-45 NORTH                        HOUSTON                      TX               77037
          4561414 N. GESSNER DRIVE                   HOUSTON                      TX               77080
          45813640 TOMBALL PARKWAY                   HOUSTON                      TX               77086
          4604550 NORTH FWY                          HOUSTON                      TX               77022
          4629790 FONDREN ROAD                       HOUSTON                      TX               77096
          4638602 BROADWAY ST                        HOUSTON                      TX               77061
          4641136 W DALLAS ST                        CONROE                       TX               77301
          4658631 BEECHNUT ST                        HOUSTON                      TX               77036
          466810 FM 1960 RD WEST                     HOUSTON                      TX               77090
          46711415 BELLAIRE BOULEVARD                HOUSTON                      TX               77072
          46810008 GULF FREEWAY                      HOUSTON                      TX               77034
          4715788 BINGLE ROAD                        HOUSTON                      TX               77092
          47211890 WESTHEIMER RD                     HOUSTON                      TX               77077
          4731400 GRAHAM DR                          TOMBALL                      TX               77375
          47517430 NORTHWEST FRWY                    HOUSTON                      TX               77040
          4772033 BINGLE RD                          HOUSTON                      TX               77055
          4793304 E 29TH ST                          BRYAN                        TX               77802
          4801217 N LOOP 336 WEST                    CONROE                       TX               77301
          4811348 E SOUTHMORE AVE                    PASADENA                     TX               77502
          4825806 BELLFORT ST                        HOUSTON                      TX               77033
          4834502 GRIGGS RD                          HOUSTON                      TX               77021
          48412603 MARKET ST.                        HOUSTON                      TX               77015
          4866872 HARRISBURG BLVD                    HOUSTON                      TX               77011
          4871213 S. MAIN ST                         PASADENA                     TX               77506
</Table>

                                       5
<PAGE>

<Table>
<S>                                                  <C>                          <C>              <C>
          4883634  GARTH ROAD                        BAYTOWN                      TX               77521
          4929150 MAIN ST.                           HOUSTON                      TX               77025
          4953010 GARTH ROAD                         BAYTOWN                      TX               77521
          49711210 HEMPSTEAD HWY                     HOUSTON                      TX               77092
          4989819 BISSONNET ST                       HOUSTON                      TX               77036
          4992525 SOUTHWEST FREEWAY 59               HOUSTON                      TX               77098
          5019910 SAN PEDRO                          SAN ANTONIO                  TX               78216
          5026804 MILITARY DRIVE WEST                SAN ANTONIO                  TX               78227
          5038458 FREDERICKSBURG                     SAN ANTONIO                  TX               78229
          5046998 ZARZAMORA                          SAN ANTONIO                  TX               78224
          505145 EAST COMMERCE                       SAN ANTONIO                  TX               78205
          5071308 AUSTIN HIGHWAY                     SAN ANTONIO                  TX               78209
          5094263 NORTHWEST LOOP 410                 SAN ANTONIO                  TX               78201
          510828 S.W. MILITARY DR                    SAN ANTONIO                  TX               78221
          511933  S.W.W. WHITE ROAD                  SAN ANTONIO                  TX               78220
          512803 CASTROVILLE ROAD                    SAN ANTONIO                  TX               78237
          513534 NORTH NEW BRAUNFELS                 SAN ANTONIO                  TX               78202
          5141151 CULEBRA                            SAN ANTONIO                  TX               78201
          5156893-A BANDERA ROAD                     LEON VALLEY                  TX               78238
          5164447 FREDERICKSBURG RD                  SAN ANTONIO                  TX               78201
          5176900 SAN PEDRO AVENUE                   SAN ANTONIO                  TX               78216
          5183678 B. CULEBRA                         SAN ANTONIO                  TX               78228
          519414 S.NEW BRAUNFELS                     SAN ANTONIO                  TX               78203
          521827 SAN PEDRO AVENUE                    SAN ANTONIO                  TX               78212
          52211751 BLANCO ROAD                       SAN ANTONIO                  TX               78216
          5238248-1 MARBACH ROAD                     SAN ANTONIO                  TX               78227
          5251960 SW MILITARY DR                     SAN ANTONIO                  TX               78221
          5264931 WALZEM ROAD                        SAN ANTONIO                  TX               78218
          5278515 PERRIN BEITEL ROAD                 SAN ANTONIO                  TX               78217
          5294877 W. COMMERCE                        SAN ANTONIO                  TX               78237
          5301918 PAT BOOKER RD.                     UNIVERSAL CITY               TX               78148
          5315836-2 BABCOCK RD.                      SAN ANTONIO                  TX               78229
          5326003 SOUTH IH-35                        SAN ANTONIO                  TX               78211
          5334802 RITTIMAN ROAD                      SAN ANTONIO                  TX               78218
          5342501 BANDERA ROAD                       SAN ANTONIO                  TX               78238
          5353815 BLANCO ROAD                        SAN ANTONIO                  TX               78212
          53613900 NACOGDOCHES ROAD                  SAN ANTONIO                  TX               78217
          5371420 WELLS BRANCH PKWY                  PFLUGERVILLE                 TX               78660
          53813410 U.S. 281 NORTH #102               SAN ANTONIO                  TX               78232
          5406750 INGRAM ROAD                        SAN ANTONIO                  TX               78238
          5415634-A WEBER STREET                     CORPUS CHRISTI               TX               78411
          543727 SO. 14TH STREET                     KINGSVILLE                   TX               78363
          5445425 PADRE ISLAND DRIVE                 CORPUS CHRISTI               TX               78415
          5453504 LEOPARD STREET                     CORPUS CHRISTI               TX               78469
          5461508 WILDCAT DRIVE                      PORTLAND                     TX               78374
          5471132 E. MAIN                            ALICE                        TX               78332
          5505341 CAMERON ROAD                       AUSTIN                       TX               78723
</Table>

                                       6
<PAGE>

<Table>
<S>                                                  <C>                          <C>              <C>
          551730 W. STASSNEY LANE #150               AUSTIN                       TX               78745
          55210205 N. LAMAR #107                     AUSTIN                       TX               78753
          5538728 B RESEARCH BLVD                    AUSTIN                       TX               78758
          5542425 EAST 7TH STREET                    AUSTIN                       TX               78702
          5555300 N.LAMAR BLVD. #101                 AUSTIN                       TX               78751
          5576929 AIRPORT BLVD. #137                 AUSTIN                       TX               78752
          5588501 BURNET ROAD, STE. C                AUSTIN                       TX               78758
          5599411 DESSAU ROAD                        AUSTIN                       TX               78753
          5627408-A CAMERON ROAD                     AUSTIN                       TX               78752
          563517 W. OLTORF ST.                       AUSTIN                       TX               78704
          5642541 SO. INTERSTATE HWY35               ROUND ROCK                   TX               78664
          5655332 MANCHACA RD.                       AUSTIN                       TX               78745
          5672217 EAST RIVERSIDE DRIVE               AUSTIN                       TX               78741
          568906 BANDERA ROAD                        SAN ANTONIO                  TX               78228
          5805951 INGRAM ROAD                        SAN ANTONIO                  TX               78228
          581115 HWY 35 SOUTH, STE 19                NEW BRAUNFELS                TX               78130
          582805 W. HILDEBRAND                       SAN ANTONIO                  TX               78212
          5831443 S.W. MILITARY                      SAN ANTONIO                  TX               78221
          584231 SAN PEDRO                           SAN ANTONIO                  TX               78205
          5853310 S. ZARZAMORA                       SAN ANTONIO                  TX               78225
          5862308 GUADALUPE                          LAREDO                       TX               78043
          587500 W. CLATRON ROAD                     LAREDO                       TX               78041
          5883502 SAN BERNARDO                       LAREDO                       TX               78041
          59011600 SH 16 NORTH #118                  SAN ANTONIO                  TX               78250
          5912102 GOLIAD RD, SUITE 1                 SAN ANTONIO                  TX               78223
          5922864 THOUSAND OAKS                      SAN ANTONIO                  TX               78247
          6011251 WEST PRATT STREET                  BALTIMORE                    MD               21223
          602803 - A SOUTHERN AVENUE                 OXON HILL                    MD               20745
          603200 NORTH HIGHLAND                      BALTIMORE                    MD               21224
          6045684 SILVER HILL ROAD                   DISTRICT HEIGHTS             MD               20747
          6075900 PULASKI HWY.                       BALTIMORE                    MD               21205
          6108010 NEW HAMPSHIRE AVE                  LANGLEY PARK                 MD               20783
          611719 NORTHPOINT BLVD.                    BALTIMORE                    MD               21224
          613602 WASHINGTON BLVD.                    LAUREL                       MD               20707
          6146256 CENTRAL AVE.                       SEAT PLEASANT                MD               20743
          618601 H. STREET, N.E.                     WASHINGTON                   DC               20002
          6216301 LIVINGSTON ROAD                    OXON HILL                    MD               20745
          6237039 M. L. KING HIGHWAY                 LANDOVER                     MD               20785
          6256719 CHESAPEAKE CENTER DR               GLEN BURNIE                  MD               21060
          6261964 DANIEL STUART SQUARE               WOODBRIDGE                   VA               22191
          6281940 14TH STREET NW.                    WASHINGTON                   DC               20009
          62910610 BALTIMORE BOULEVARD               BELTSVILLE                   MD               20705
          630508-A S. VAN DORN STREET                ALEXANDRIA                   VA               22304
          6323234 DONNELL DRIVE                      FORESTVILLE                  MD               20747
          6336190 ARLINGTON BOULEVARD                FALLS CHURCH                 VA               22044
          634428 EAST 33RD STREET                    BALTIMORE                    MD               21218
          6353903 BENNING RD.,NE                     WASHINGTON                   DC               20019
</Table>

                                       7
<PAGE>

<Table>
<S>                                                  <C>                          <C>              <C>
          6365221 INDIAN HEAD HYWY.                  OXEN HILL                    MD               20745
          6374811 MARLBORO PIKE                      CORA HILL                    MD               20743
          6383663 GEORGIA AVE, NW                    WASHINGTON                   DC               20010
          639311 N. GLEBE ROAD                       ARLINGTON                    VA               22203
          6406421 ANNAPOLIS RD                       HYATTSVILLE                  MD               20784
          6415416 YORK ROAD                          BALTIMORE                    MD               21212
          6445624 COLUMBIA PIKE                      FALLS CHURCH                 VA               22041
          6463046 GREENMOUNT AVENUE                  BALTIMORE                    MD               21218
          6495500 SINCLAIR LANE                      BALTIMORE                    MD               21206
          6502200 EAST MONUMENT STREET               BALTIMORE                    MD               21202
          654909 H STREET, N.E.                      WASHINGTON                   DC               20002
          6559920 YORK ROAD                          COCKEYSVILLE                 MD               21030
          6598470 ANNAPOLIS ROAD                     NEW CARROLLTON               MD               20784
          661645 PENNSYLVANIA AVE. S.E               WASHINGTON                   DC               20003
          6632332 IVERSON STREET                     TEMPLE HILLS                 MD               20748
          6642012 W. STREET, UNIT C                  ANNAPOLIS                    MD               21401
          665211 NORTH FREDERICK AVE.                GAITHERSBURG                 MD               20877
          6671512 BENNING RD, NE                     WASHINGTON                   DC               20002
          6682337 PENNSYLVANIA AVE SE                WASHINGTON                   DC               20020
          6693829 PENNSYLVANIA AVE                   WASHINGTON                   DC               20020
          6701786 FLORIDA AVE NW                     WASHINGTON                   DC               20009
          67111337 GEORGIA AVE                       WHEATON                      MD               20902
          6726221 GEORGIA AVE, NW                    WASHINGTON                   DC               20011
          6748505 PINEY BRANCH                       TAKOMA PARK                  MD               20901
          6755429 KENNEDY STREET NW                  WASHINGTON                   DC               20011
          6761245 GOOD HOPE ROAD                     WASHINGTON                   DC               20020
          677401 M STREET, S.W.                      WASHINGTON                   DC               20024
          6781170-A WEST PATRICK ST                  FREDERICK                    MD               21702
          6796603 RIVERDALE RD                       RIVERDALE                    MD               20737
          6822922 MLK JR AVE,                        WASHINGTON                   DC               20032
          6832254 HUNTINGTON AVENUE                  ALEXANDRIA                   VA               22303
          6844121 MT. VERNON AVENUE                  ALEXANDRIA                   VA               22305
          6867517 LANDOVER ROAD                      LANDOVER                     MD               20785
          68711311-A LOCKWOOD DRIVE                  SILVER SPRING                MD               20901
          6883441 CLIFTON AVENUE                     BALTIMORE                    MD               21216
          6908815 CENTERVILLE ROAD                   MANASSAS                     VA               22110
          6923400 EAST WEST HIGHWAY                  HYATTSVILLE                  MD               20780
          6943010 WEST MERCURY BLVD                  HAMPTON                      VA               23666
          6958337 SUDLEY ROAD                        MANASSAS                     VA               20109
          6964815-A ANNAPOLIS ROAD                   BLADENSBURG                  MD               20710
          6971312 EASTERN BLVD                       BALTIMORE                    MD               21221
          6992441 GOOD HOPE ROAD                     WASHINGTON                   DC               20020
          7013804 DUBLIN                             NEW ORLEANS                  LA               70118
          7024523 WEST BANK EXPRESSWAY               MARRERO                      LA               70072
          703624 TERRY PARKWAY                       TERRYTOWN                    LA               70056
          7042541 WILLIAMS BOULEVARD                 KENNER                       LA               70062
          7059701 I-10                               NEW ORLEANS                  LA               70127
</Table>

                                       8
<PAGE>

<Table>
<S>                                                  <C>                          <C>              <C>
          7068720 W. JUDGE PEREZ DRIVE               CHALMETTE                    LA               70043
          7075741 CROWDER BLVD.                      NEW ORLEANS                  LA               70127
          7091157 N. BROAD ST                        NEW ORLEANS                  LA               70119
          7102766 BELLE CHASE HWY                    GRETNA                       LA               70053
          7114103 JEFFERSON HWY                      JEFFERSON                    LA               70121
          7121028 MANHATTAN BLVD                     HARVEY                       LA               70058
          7133816 VETERANS BOULEVARD                 METAIRIE                     LA               70002
          7144041 WILLIAMS BOULEVARD                 KENNER                       LA               70065
          7154639 MAGAZINE STREET                    NEW ORLEANS                  LA               70115
          716401 S. CLAIBORNE AVE                    NEW ORLEANS                  LA               70112
          7175949 PLANK ROAD                         BATON ROUGE                  LA               70805
          7185025 FLORIDA BLVD.                      BATON ROUGE                  LA               70806
          7193601 NORTH CAUSEWAY BLVD                METAIRIE                     LA               70002
          720334 CARONDELET                          NEW ORLEANS                  LA               70130
          72112330 FLORIDA BLVD                      BATON ROUGE                  LA               70815
          722904 WEST AIRLINE                        LAPLACE                      LA               70068
          7234427 PERKINS ROAD                       BATON ROUGE                  LA               70808
          72419973 THAD CAIN LANE                    BATON ROUGE                  LA               70809
          8012363 S. COBB DRIVE                      SMYRNA                       GA               30080
          8043570 MEMORIAL DRIVE                     DECATUR                      GA               30032
          8064058 PEACHTREE RD                       ATLANTA                      GA               30319
          8072261 CHESHIRE BRIDGE ROAD               ATLANTA                      GA               30324
          8095659 RIVERDALE ROAD                     COLLEGE PARK                 GA               30337
          8106635 GEORGIA HIGHWAY                    RIVERDALE                    GA               30274
          8112841 GREENBRIAR PARKWAY,                ATLANTA                      GA               30331
          8136443 TARA BOULEVARD                     JONESBORO                    GA               30236
          8141030-3 WINDY HILL ROAD                  SMYRNA                       GA               30080
          816461 PONCE DE LEON, N.E.                 ATLANTA                      GA               30308
          8175345-N  JIMMY CARTER BLVD               NORCROSS                     GA               30093
          8183210-I NORCROSS -                       TUCKER                       GA               30084
          8206200 BUFORD HIGHWAY                     NORCROSS                     GA               30071
          821277 S. MARIETTA PKY.                    MARIETTA                     GA               30064
          8221618 WILLINGHAM ROAD                    EAST POINT                   GA               30344
          8234703 JONESBORO ROAD                     FOREST PARK                  GA               30297
          824863 OAK STREET                          ATLANTA                      GA               30310
          8274801 MEMORIAL DRIVE                     DECATUR                      GA               30030
          8291974 CANDLER                            DECATUR                      GA               30032
          8302798 CAMP CREEK PKWY.                   COLLEGE PARK                 GA               30337
          831495-C WHITEHALL STREET                  ATLANTA                      GA               30303
          8355190 OLD NATIONAL HIGHWAY               COLLEGE PARK                 GA               30348
          8367512 HWY 85 @ HWY 138                   RIVERDALE                    GA               30274
          8374065 MEMORIAL, STE. F                   DECATUR                      GA               30032
          8382800 DELK ROAD                          MARIETTA                     GA               30067
          8393583 MLK JR. DRIVE                      ATLANTA                      GA               30331
          8402581 PIEDMONT RD.                       ATLANTA                      GA               30324
          8413714 ROSWELL RD. NE                     ATLANTA                      GA               30342
          8433675 SATELLITE BLVD. #830               DULUTH                       GA               30096
</Table>

                                       9
<PAGE>

<Table>
<S>                                                  <C>                          <C>              <C>
          8441284 ROSWELL RD.                        MARIETTA                     GA               30062
          845795 HOLCOMB BRIDGE RD                   ROSWELL                      GA               30076
          8464070 AUSTELL ROAD                       AUSTELL                      GA               30060
          8477050 JIMMY CARTER BLVD.                 NORCROSS                     GA               30092
          848209 LAKESHORE PARKWAY                   HOMEWOOD                     AL               35209
          8508763 DUNWOODY PLACE                     DUNWOODY                     GA               30350
          8512697 SPRING ROAD                        SMYRNA                       GA               30080
          8521153 HUFFMAN ROAD                       BIRMINGHAM                   AL               35206
          853904 THORNTON ROAD                       LITHIA SPRINGS               GA               30122
          8551853 TERRELL MILL ROAD                  MARIETTA                     GA               30062
          856381 MORELAND AVENUE, SE                 ATLANTA                      GA               30316
          858233 SOUTH MAIN STREET                   ALPHARETTA                   GA               30004
          860350 SHALLOWFORD ROAD,#D                 GAINESVILLE                  GA               30504
          90159 E. DERENNE AVE                       SAVANNAH                     GA               31405
          902424 WEST BROUGHTON STREET               SAVANNAH                     GA               31401
          9051093 EISENHOWER PARKWAY                 MACON                        GA               31206
          906586 POPLAR STREET                       MACON                        GA               31210
          907305 SOUTH SLAPPY ROAD                   ALBANY                       GA               31701
          9082418 SYLVESTER HWY STE.2                ALBANY                       GA               31707
          9092625 DEANS BRIDGE ROAD                  AUGUSTA                      GA               30906
          9101502 WALTON WAY                         AUGUSTA                      GA               30901
          9116432 K TWO KNOTCH ROAD                  COLUMBIA                     SC               29223
          9122300-C TAYLOR STREET                    COLUMBIA                     SC               29202
          914418 WEST MAIN STREET                    SPARTANBURG                  SC               29301
          9152000 MCMILLIAN AVE. #B                  NORTH CHARLESTON             SC               29405
          9162706 B FREEDOM DRIVE                    CHARLOTTE                    NC               28208
          9172419 WILLIAMSON ROAD                    ROANOKE                      VA               24011
          9183925 MELROSE AVE                        ROANOKE                      VA               24017
          9196824-E ALBERMARLE RD                    CHARLOTTE                    NC               28212
          9212611-A CENTRAL AVE                      CHARLOTTE                    NC               28205
          9221520 BROAD RIVER ROAD                   COLUMBIA                     SC               29210
          9231603 SOUTH BLVD                         CHARLOTTE                    NC               28203
          9241420 KNOX ABBOTT DR                     WEST COLUMBIA                SC               29169
          9256600 E. INDEPENDENCE BLVD               CHARLOTTE                    NC               28212
          9262154-A WARDS ROAD                       LYNCHBURG                    VA               24502
          9281038 N PLEASANTBURG DR                  GREENVILLE                   SC               29607
          9291101 EAST                               SAVANNAH                     GA               31406
          9301081 JOHN C. CALHOUN DR                 ORANGEBURG                   SC               29115
          9316111 SOUTH BLVD.                        CHARLOTTE                    NC               28217
          9323301 FREEDOM DR                         CHARLOTTE                    NC               28209
          93372 COLONY ROAD                          NEWPORT NEWS                 VA               23602
          934412 NEWTOWN ROAD                        VIRGINIA BEACH               VA               23462
          9353844 GEORGE WASHINGTON                  PORTSMOUTH                   VA               23702
          937109 WELLONS VILLAGE                     DURHAM                       NC               27703
          9384213 PORTSMOUTH                         PORTSMOUTH                   VA               23701
          9392700 HAMPTON BLVD                       NORFOLK                      VA               23517
          94010143-A JEFFERSON AVENUE                NEWPORT NEWS                 VA               23605
</Table>

                                       10
<PAGE>

<Table>
<S>                                                  <C>                          <C>              <C>
          94112917 J JEFFERSON BLVD                  NEWPORT NEWS                 VA               23608
          9423819 KECOUGHTAN AVENUE                  HAMPTON                      VA               23661
          9437522 TIDEWATER DRIVE                    NORFOLK                      VA               23505
          944476 MEETING STREET                      CHARLESTON                   SC               29403
          9461766 E. LITTLE CREEK                    NORFOLK                      VA               23518
          9473636 VIRGINIA BEACH BLVD                VIRGINIA BEACH               VA               23452
          9523061 N. SHARON-AMITY RD                 CHARLOTTE                    NC               28212
          9534391 DORCHESTER RD                      NORTH CHARLESTON             SC               29405
          9541015 E. CONE BLVD                       GREENSBORO                   NC               27405
          956901 B NTH WENDOVER RD                   CHARLOTTE                    NC               28211
          9581499 NEW WALKERTOWN RD                  WINSTON SALEM                NC               27101
          9591259 - BS PLEASANTBURG                  GREENVILLE                   SC               29605
          960606 1/2 EDGEFIELD RD                    NORTH AUGUSTA                SC               29841
          9632915 - B THE PLAZA                      CHARLOTTE                    NC               28205
          9654402 MARKET STREET                      WILMINGTON                   NC               28403
          9661709 DAWSON STREET                      WILMINGTON                   NC               28403
          967103-A VILLAGE ROAD                      LELAND                       NC               28451
          968762 CHERRY ROAD                         ROCK HILL                    SC               29732
          9694420 ALTAMA AVENUE                      BRUNSWICK                    GA               31520
         10011409 E. NINTH STREET                    CLEVELAND                    OH               44114
         10021530 HAYDEN AVENUE                      EAST CLEVELAND               OH               44112
         10032750 VAN AKEN BOULEVARD                 CLEVELAND                    OH               44120
         10043712 PEARL ROAD                         CLEVELAND                    OH               44109
         10057148 DENISON AVE                        CLEVELAND                    OH               44102
         100615500 EUCLID AVE                        EAST CLEVELAND               OH               44112
         10075498 CHESTER AVE                        CLEVELAND                    OH               44103
         100824800 ROCKSIDE ROAD                     BEDFORD HEIGHTS              OH               44146
         10102079 W. 25TH STREET                     CLEVELAND                    OH               44113
         101111411 BUCKEYE ROAD                      CLEVELAND                    OH               44104
         10122167 SOUTH TAYLOR ROAD                  UNIVERSITY HEIGHTS           OH               44118
         101314782 DETROIT AVENUE                    LAKEWOOD                     OH               44107
         10146277 #D PEARL RD                        PARMA HEIGHTS                OH               44130
         101516604 LORAIN AVENUE                     CLEVELAND                    OH               44111
         101614001 TRISKETT ROAD                     CLEVELAND                    OH               44111
         101715701 BROADWAY ROAD                     MAPLE HEIGHTS                OH               44137
         101810589 ST. CLAIR AVENUE                  CLEVELAND                    OH               44108
         10197470 BROOKPARK ROAD                     BROOKLYN                     OH               44129
         102134861 EUCLID AVE.                       WILLOUGHBY                   OH               44094
         12021829 MONTANA                            EL PASO                      TX               79903
         12035501 DYER ST., B                        EL PASO                      TX               79932
         12041911 WEST MAIN STREET                   MESA                         AZ               85201
         12098225 W.INDIAN SCHOOL ROAD               PHOENIX                      AZ               85033
         121016874 N.CAVE CREEK ROAD                 PHOENIX                      AZ               85032
         12144239 W.MCDOWELL ROAD                    PHOENIX                      AZ               85009
         12154344 W. INDIAN SCHOOL                   PHOENIX                      AZ               85031
         12167227 SOUTH CENTRAL AVE.                 PHOENIX                      AZ               85040
         12176601 W. INDIAN SCHOOL                   PHOENIX                      AZ               85033
</Table>

                                       11
<PAGE>

<Table>
<S>                                                  <C>                          <C>              <C>
         1218702 W. CAMELBACK, STE. 7                PHOENIX                      AZ               85013
         12194822 NORTH 27TH AVENUE                  PHOENIX                      AZ               85017
         12201635 E. INDIAN  SCHOOL RD               PHOENIX                      AZ               85016
         12213343 W. PEORIA AVE. #8                  PHOENIX                      AZ               85029
         122217220 NORTH 19TH AVE.                   PHOENIX                      AZ               85023
         12233460 EAST SOUTHERN AVE.                 MESA                         AZ               85204
         1224724 W. UNIVERSITY DRIVE                 MESA                         AZ               85201
         12258345 W. GLENDALE AVE.                   GLENDALE                     AZ               85305
         12272760 E. MAIN STREET                     MESA                         AZ               85213
         1229238 W. WESTERN                          AVONDALE                     AZ               85323
         12305052 WEST OLIVE                         GLENDALE                     AZ               85302
         12314444 E. GRANT STREET                    TUCSON                       AZ               85712
         12325644 E. BROADWAY                        TUCSON                       AZ               85711
         13011509 NEW YORK AVENUE                    ARLINGTON                    TX               76010
         1302205 N BARTON ST                         GRAPEVINE                    TX               76051
         13036304 JACKSBORO HIGHWAY                  LAKE WORTH                   TX               76135
         13052540 N JOSEY LN                         CARROLLTON                   TX               75006
         13065606 BROADWAY BLVD                      GARLAND                      TX               75043
         13076334 MEADOWBROOK DRIVE                  FORT WORTH                   TX               76112
         1308251 SOUTHWEST WILSHIRE BL               BURLESON                     TX               76028
         13095920 SAMUELL BLVD                       DALLAS                       TX               75228
         1310836 W UNIVERSITY DR                     DENTON                       TX               76201
         13115628 LEMMON AVE                         DALLAS                       TX               75209
         13123520 N BUCKNER BLVD                     DALLAS                       TX               75228
         13133905 EAST BELKNAP STREET                FORT WORTH                   TX               76111
         131414500 JOSEY LANE                        FARMERS BRANCH               TX               75234
         13161704 MILITARY PARKWAY                   MESQUITE                     TX               75149
         13174215 SOUTH BROADWAY AVE                 TYLER                        TX               75701
         131817630 PRESTON ROAD                      DALLAS                       TX               75252
         13191324 W. MAIN STREET                     LEWISVILLE                   TX               75067
         1320215 SOUTH HIGH STREET                   LONGVIEW                     TX               75602
         13212101 WEST GENTRY PARKWAY                TYLER                        TX               75702
         13293714 W LEDBETTER DR                     DALLAS                       TX               75233
         13303330 NORTH GALLOWAY AVE                 MESQUITE                     TX               75150
         13322351 VALWOOD PARKWAY                    FARMERS BRANCH               TX               75234
         1335934 N COLLINS ST                        ARLINGTON                    TX               76011
         13364749 E LANCASTER AVE                    FORT WORTH                   TX               76103
         13393306 W CAMP WISDOM RD                   DALLAS                       TX               75237
         13411901 E. IRVING BLVD                     IRVING                       TX               75061
         1342112 E. SEMINARY DRIVE                   FORT WORTH                   TX               76115
         134310201 LAKE JUNE ROAD                    DALLAS                       TX               75217
         13441500 N CENTRAL EXPY                     PLANO                        TX               75074
         13454498 S. MARSALIS AVENUE                 DALLAS                       TX               75216
         13463802 JEWELLA AVENUE                     SHREVEPORT                   LA               71109
         13475200 DENTON HWY                         HALTOM CITY                  TX               76148
         13482709 W. 70TH STREET                     SHREVEPORT                   LA               71118
         1349733 BENTON ROAD                         BOSSIER CITY                 LA               71111
</Table>

                                       12
<PAGE>

<Table>
<S>                                                  <C>                          <C>              <C>
         13502102 NORTHWEST HWY                      GARLAND                      TX               75041
         1351410 E. PIONEER PARKWAY                  GRAND PRAIRIE                TX               75051
         13521700 S. CHERRY LANE                     WHITE SETTLEMENT             TX               76108
         13532821 LIVE OAK STREET                    DALLAS                       TX               75204
         13543250 W PLEASANT RUN RD                  LANCASTER                    TX               75146
         13555820 CAMP BOWIE BLVD                    FORT WORTH                   TX               76107
         13564801 LITTLE ROAD                        ARLINGTON                    TX               76017
         13571302 S. HWY 121                         LEWISVILLE                   TX               75057
         13591016 WEST LOOP 281                      LONGVIEW                     TX               75604
         136017509 COIT RD                           DALLAS                       TX               75252
         13618405 HARWOOD ROAD                       NORTH RICHLAND HILLS         TX               76180
         13622802 N.MACARTHUR BLVD                   IRVING                       TX               75062
         13632215 S. LOOP 288                        DENTON                       TX               76205
         13662809 WEST BERRY STREET                  FORT WORTH                   TX               76109
         13673405 MANSFIELD HWY.                     FORT WORTH                   TX               76119
         13684750 BRYANT IRVIN                       FORT WORTH                   TX               76132
         13867824 SOUTH FWY 35 WEST                  FORT WORTH                   TX               76134
         13872248 CENTRAL DR                         BEDFORD                      TX               76021
         1388508 WEST EULESS BLVD                    EULESS                       TX               76040
         13892231 W LEDBETTER DR                     DALLAS                       TX               75224
         1390401 S. CENTRAL EXPRESSWAY               MCKINNEY                     TX               75069
         13912309 GILMER RD.                         LONGVIEW                     TX               75604
         1392319 E. FRONT STREET                     TYLER                        TX               75702
         13939475 BENBROOK BLVD                      BENBROOK                     TX               76126
         13941918 EPHRIHAM AVE                       FT. WORTH                    TX               76016
         13958988 MANSFIELD ROAD                     SHREVEPORT                   LA               71118
         140113315 EAST FREEWAY                      HOUSTON                      TX               77015
         14026464 WEST LITTLE YORK RD                HOUSTON                      TX               77091
         14044926 WASHINGTON AVE                     HOUSTON                      TX               77007
         1405815 SOUTH 75TH ST.                      HOUSTON                      TX               77012
         14065700 SOUTH LOOP E                       HOUSTON                      TX               77033
         14082805 SAM HOUSTON AVE.                   HUNTSVILLE                   TX               77340
         14093011 HIGHWAY 30 WEST                    HUNTSVILLE                   TX               77340
         14103103 FM 1960 RD WEST                    HUMBLE                       TX               77338
         14115201 RICHMOND AVE                       HOUSTON                      TX               77056
         14123967 SOUTH GESSNER RD                   HOUSTON                      TX               77063
         1413100 EAST NASA ROAD 1                    WEBSTER                      TX               77598
         14147812 ALMEDA RD                          HOUSTON                      TX               77054
         14154010 FAIRMONT PARKWAY                   PASADENA                     TX               77504
         14174607 HIGHWAY 6 NORTH                    HOUSTON                      TX               77084
         1419442 W LITTLE YORK RD                    HOUSTON                      TX               77076
         14208311 LONG POINT RD.                     HOUSTON                      TX               77055
         14216010 S. GESSNER DR.                     HOUSTON                      TX               77036
         14222904 MAGNUM RD.                         HOUSTON                      TX               77092
         14236239 WESTHEIMER RD                      HOUSTON                      TX               77057
         14246475 HILLCROFT ST.                      HOUSTON                      TX               77081
         14261019 DAIRY ASHFORD ST                   HOUSTON                      TX               77079
</Table>

                                       13
<PAGE>

<Table>
<S>                                                  <C>                          <C>              <C>
         142810804 SOUTH POST OAK RD                 HOUSTON                      TX               77035
         14296123 TELEPHONE ROAD                     HOUSTON                      TX               77087
         143218553 KUYKENDAHL RD                     SPRING                       TX               77379
         14339539 S. MAIN ST                         HOUSTON                      TX               77025
         14342001 FANNIN ST                          HOUSTON                      TX               77002
         14358304 BROADWAY ST                        HOUSTON                      TX               77061
         143614708 HIRAM CLARKE RD                   HOUSTON                      TX               77053
         14377614 CLAREWOOD DR                       HOUSTON                      TX               77036
         14395214 BELLAIRE BLVD                      BELLAIRE                     TX               77401
         14407080 BISSONNET ST                       HOUSTON                      TX               77074
         144111401 N. FREEWAY                        HOUSTON                      TX               77060
         14422209 S MAIN ST                          STAFFORD                     TX               77477
         14433112 SPENCER HWY                        PASADENA                     TX               77504
         144412580 BELLAIRE BLVD                     HOUSTON                      TX               77072
         1446202 SAWDUST RD                          WOODLANDS                    TX               77380
         14475390 RENWICK DR                         HOUSTON                      TX               77081
         14482838 HIGHWAY 6 SOUTH                    HOUSTON                      TX               77082
         14493849 SOUTH SHAVER ST                    HOUSTON                      TX               77504
         14514130 AYERS ST                           CORPUS CHRISTI               TX               78415
         14525145 EVERHART RD                        CORPUS CHRISTI               TX               78411
         14533765 LEOPARD ST                         CORPUS CHRISTI               TX               78408
         14545488 S. PADRE ISLAND DR                 CORPUS CHRISTI               TX               78411
         14553216 S. PORT AVENUE                     CORPUS CHRISTI               TX               78415
         14561305 S. PORT AVENUE                     CORPUS CHRISTI               TX               78405
         14571602 N. LAURENT ST.                     VICTORIA                     TX               77901
         1459905 PAREDES LINE ROAD                   BROWNSVILLE                  TX               78521
         14602921 BOCA CHICA BLVD                    BROWNSVILLE                  TX               78521
         1461623 W HARRISON AVE                      HARLINGEN                    TX               78550
         14652109 N.10TH STREET                      MCALLEN                      TX               78504
         14661101 N CAGE BLVD                        PHARR                        TX               78577
         1467630 S. 23RD STREET                      MCALLEN                      TX               78503
         14681001 SOUTH 10TH ST.,STE I               MCALLEN                      TX               78503
         14691025 N. TEXAS BLVD                      WESLACO                      TX               78596
         14712629 W PECAN BLVD.                      MCALLEN                      TX               78501
         1472102 W. 9TH STREET                       MISSION                      TX               78572
         147411918 WILCREST DR                       HOUSTON                      TX               77031
         147510434 RICHMOND AVENUE                   HOUSTON                      TX               77042
         14768708 SOUTH GESSNER DR                   HOUSTON                      TX               77074
         14778366 WESTHEIMER RD                      HOUSTON                      TX               77063
         14781029 HWY 6 NORTH                        HOUSTON                      TX               77079
         14804611 GARTH ROAD                         BAYTOWN                      TX               77522
         1481928 E TIDWELL RD                        HOUSTON                      TX               77022
         148210959 FM 1960 RD WEST                   HOUSTON                      TX               77070
         1484819 N 10TH ST                           MCALLEN                      TX               78501
         14861789 FRY RD.                            KATY                         TX               77449
         16016672 INDIAN RIVER ROAD                  VIRGINIA BEACH               VA               23464
         16026040 E. VIRGINIA BEACH BL               NORFOLK                      VA               23502
</Table>

                                       14
<PAGE>

<Table>
<S>                                                  <C>                          <C>              <C>
         16044524 ST BARNABAS ROAD                   TEMPLE HILLS                 MD               20748
         16053579 PLANK ROAD                         FREDRICKSBURG                VA               22407
         16071064 LYNHAVEN PKWY, #103                VIRGINIA BEACH               VA               23452
         16081879 EAST OCEANVIEW AVE                 NORFOLK                      VA               23518
         1609407 W. BALTIMORE STREET                 BALTIMORE                    MD               21201
         20127621 S. PENN                            OKLAHOMA CITY                OK               73159
         20146601 NW EXPRESSWAY                      OKLAHOMA CITY                OK               73132
         2017900 S. BROADWAY                         EDMOND                       OK               73034
         20182505 NW 23RD ST                         OKLAHOMA CITY                OK               73107
         2021216 NW 23RD STREET                      OKLAHOMA CITY                OK               73103
         20223631 N. MACARTHUR BLVD                  WARR ACRES                   OK               73122
         2034824 S. AIR DEPOT BLVD                   MIDWEST CITY                 OK               73110
         20355305 S. WESTERN AVE                     OKLAHOMA CITY                OK               73109
         20365943 NW 23RD ST                         OKLAHOMA CITY                OK               73127
         20373537 N SHIELDS BLVD                     MOORE                        OK               73160
         20383001 N MAY AVE                          OKLAHOMA CITY                OK               73107
         20413001 S MAY AVE                          OKLAHOMA CITY                OK               73119
         20421107 S HARVARD AVE                      TULSA                        OK               74112
         20435804 S MEMORIAL DR                      TULSA                        OK               74145
         20447861 E. ADMIRAL PLACE                   TULSA                        OK               74115
         20456005 S PEORIA AVE                       TULSA                        OK               74105
         204610664 E 31ST ST                         TULSA                        OK               74146
         20474721 S.E. 15TH STREET                   DEL CITY                     OK               73115
         20484503 N.W. 23RD STREET                   OKLAHOMA CITY                OK               73127
         20511425 S.W. 59TH STREET                   OKLAHOMA CITY                OK               73119
         20522216 N.W. 23RD STREET                   OKLAHOMA CITY                OK               73107
         21026416 ASHER AVE                          LITTLE ROCK                  AR               72204
         21032801 S OLIVE ST                         PINE BLUFF                   AR               71601
         21042139 LAMAR AVE.                         MEMPHIS                      TN               38114
         21053310 JACKSON AVE.                       MEMPHIS                      TN               38122
         21067508 GEYER SPRINGS RD                   LITTLE ROCK                  AR               72209
         21075169 WINCHESTER ROAD                    MEMPHIS                      TN               38118
         21083422 PIKE AVENUE                        NORTH LITTLE ROCK            AR               72118
         21091631 POPLAR AVENUE                      MEMPHIS                      TN               38104
         21111100 EAST ROOSEVELT RD                  LITTLE ROCK                  AR               72206
         21125513 CHARLOTTE AVENUE                   NASHVILLE                    TN               37209
         21131143 GALLATIN ROAD                      NASHVILLE                    TN               37206
         21143417 NOLENSVILLE ROAD                   NASHVILLE                    TN               37211
         2115367 HARDING PL STE C                    NASHVILLE                    TN               37211
         2116717 CRAIGHEAD STREET                    NASHVILLE                    TN               37204
         21171330 E SHELBY DR                        MEMPHIS                      TN               38116
         21181979 S 3RD ST                           MEMPHIS                      TN               38109
         21192117 SYCAMORE VIEW RD                   MEMPHIS                      TN               38134
         21202012 S HAMILTON RD                      NASHVILLE                    TN               37218
         21223606 GALLATIN PIKE                      NASHVILLE                    TN               37206
         21234985 NAVY ROAD                          MILLINGTON                   TN               38053
         2124100 E. BROADWAY ST                      WEST MEMPHIS                 AR               72301
</Table>

                                       15
<PAGE>

<Table>
<S>                                                  <C>                          <C>              <C>
         21253102 AUSTIN PEAY HWY                    MEMPHIS                      TN               38128
         2126310 S. BROADWAY ST                      LITTLE ROCK                  AR               72201
         21314899 SUMMER AVE                         MEMPHIS                      TN               38122
         21344085 AMERICAN WAY                       MEMPHIS                      TN               38118
         21362811 WEST 28TH AVENUE                   PINE BLUFF                   AR               71603
         22014720 CENTRAL AVE. SE                    ALBUQUERQUE                  NM               87108
         22022121 CENTRAL NW                         ALBUQUERQUE                  NM               87104
         22031331 JUAN TABO NE                       ALBUQUERQUE                  NM               87112
         2204636 SAN MATEO SE                        ALBUQUERQUE                  NM               87108
         22059001 CENTRAL AVE, NE                    ALBUQUERQUE                  NM               87123
         22065310 FOURTH STREET, N.W.                ALBUQUERQUE                  NM               87107
         2207111 COORS BLVD. N.W.                    ALBUQUERQUE                  NM               87121
         22084001 SAN MATEO                          ALBUQUERQUE                  NM               87110
         22097122 MENAUL BLVD9  NE                   ALBUQUERQUE                  NM               87110
         22103200 - 4 COORS BLVD, NW                 ALBUQUERQUE                  NM               87120
         22119600 MONTANA                            EL PASO                      TX               79925
         22127138 ALAMEDA                            EL PASO                      TX               79915
         22131360 LEE TREVINO                        EL PASO                      TX               79935
         22141830 GEORGE DIETER #104                 EL PASO                      TX               79936
         22169130 DYER STREET                        EL PASO                      TX               79924
         22175070 DONIPHAN, SUITE C                  EL PASO                      TX               79932
         2301679 JEFFCO BLVD.                        ARNOLD                       MO               63010
         230210578 PAGE ST.                          ST. LOUIS                    MO               63132
         2303116 W. TERRA LANE                       O'FALLON                     MO               63366
         230413001 NEW HALLS FERRY RD                ST LOUIS                     MO               63136
         23067028 W. FLORISSANT                      JENNINGS                     MO               63136
         230714636 MANCHESTER ROAD                   BALLWIN                      MO               63021
         2308601 FIRST CAPITAL RD.                   ST. CHARLES                  MO               63301
         23129144 W. FLORISSANT                      ST LOUIS                     MO               63136
         23133655 S. GRAND                           ST LOUIS                     MO               63118
         231410004 GRAVOIS ROAD                      ST.LOUIS                     MO               63123
         23158434 LINDBERGH                          FLORISSANT                   MO               63031
         24011701 LINCOLN HWY                        NORTH VERSAILLES             PA               15137
         240321 YOST BLVD., SUITE 132                PITTSBURG                    PA               15221
         2404128 CHARTIERS AVE                       MCKEES ROCKS                 PA               15136
         24056401 PENN AVENUE                        PITTSBURGH                   PA               15206
         24067404 CHURCH STREET                      SWISSVALE                    PA               15218
         24074528 LIBERTY AVENUE                     PITTSBURGH                   PA               15224
         24091059 WASHINGTON AVENUE                  CARNEGIE                     PA               15106
         2410722-R PENN AVENUE                       PITTSBURGH                   PA               15221
         2411100 FORBES AVENUE, #115                 PITTSBURGH                   PA               15221
         24132101 PENN AVENUE                        PITTSBURGH                   PA               15222
         24143306 MAHONING AVENUE                    YOUNGSTOWN                   OH               44509
         2415272 BOARDMAN-CANFIELD RD                YOUNGSTOWN                   OH               44512
         24167773 MCKNIGHT ROAD                      PITTSBURGH                   PA               15237
         24174040 YOUNGSTOWN-POLAND RD               YOUNGSTOWN                   OH               44514
         2418206 FIFTH AVENUE                        PITTSBURGH                   PA               15222
</Table>

                                       16
<PAGE>

<Table>
<S>                                                  <C>                          <C>              <C>
         24202351 NOBLESTOWN ROAD #B-3               GREENTREE BOROUGH            PA               15205
         24212020 E. CARSON STREET                   PITTSBURGH                   PA               15203
         2422710 E. WARRINGTON AVE. E                PITTSBURGH                   PA               15211
         24231922 SPRING GARDEN AVE                  PITTSBURGH                   PA               15212
         24243029 BELMONT AVE.                       YOUNGSTOWN                   OH               44505
         24252550 1/2 MARKET STREET                  YOUNGSTOWN                   OH               44512
         25015061 E. 38TH STREET                     INDIANAPOLIS                 IN               46218
         25032435 N SHERMAN                          INDIANAPOLIS                 IN               46218
         25062620 S. MADISON AVENUE                  INDIANAPOLIS                 IN               46225
         25083801 LAFAYETTE ROAD                     INDIANAPOLIS                 IN               46254
         25107025 PENDLETON PIKE                     INDIANAPOLIS                 IN               46225
         25114001 E. 10TH STREET                     INDIANAPOLIS                 IN               46201
         25121017 E. COLISEUM                        FT. WAYNE                    IN               46805
         25135608 GEORGETOWN                         INDIANAPOLIS                 IN               46254
         25148091 S. MADISON                         INDIANAPOLIS                 IN               46227
         25181119 EAST MCGALLIARD RD                 MUNCIE                       IN               47303
         2519711 W. FRYE ROAD                        GREENWOOD                    IN               46142
         25208939 E. 38TH STREET                     INDIANAPOLIS                 IN               46226
         25215841 CRAWFORDSVILLE RD                  INDIANAPOLIS                 IN               46224
         252340 NORTH DELAWARE                       INDIANAPOLIS                 IN               46204
         25243915 MADISON AVENUE                     INDIANAPOLIS                 IN               46227
         25258027 PENDELTON PIKE                     INDIANAPOLIS                 IN               46226
         25273406 W. 16TH STREET                     INDIANAPOLIS                 IN               46222
         25289515 E. WASHINGTON STREET               INDIANAPOLIS                 IN               46229
         25293762 N. MERIDIAN                        INDIANPOLIS                  IN               46208
         25331115 EAST 86TH STREET                   INDIANAPOLIS                 IN               46240
         2534600 TWIN AIRE DRIVE #9                  INDIANAPOLIS                 IN               46203
         25358605 N. MICHIGAN ROAD                   INDIANAPOLIS                 IN               46268
         25362321 EAST 38TH ST.,STE.A                INDIANAPOLIS                 IN               46218
         25375357 N. KEYSTONE AVENUE                 INDIANAPOLIS                 IN               46220
         25384112 N. HIGH SCHOOL ROAD                INDIANAPOLIS                 IN               46254
         25395103 WASHINGTON STREET W.               INDIANAPOLIS                 IN               46241
         27011535 E CENTRAL AVE                      WICHITA                      KS               67214
         27021606 S BROADWAY ST                      WICHITA                      KS               67211
         27031105 W PAWNEE ST                        WICHITA                      KS               67213
         27046259 E 21ST ST N                        WICHITA                      KS               67208
         310114615 1ST AVENUE SOUTH                  BURIEN                       WA               98168
         31022632 SOUTH 38TH STREET                  TACOMA                       WA               98406
         310313754-A AURORA AVE.N                    SEATTLE                      WA               98133
         310610519 BRIDGEPORT WAY SW                 TACOMA                       WA               98499
         310710707 PACIFIC AVENUE #D                 TACOMA                       WA               98444
         31086302 6TH AVENUE                         TACOMA                       WA               98406
         31093110 SW CEDAR HILLS BLVD                BEAVERTON                    OR               97005
         31102722 NORTH LOMBARD                      PORTLAND                     OR               97217
         3111407 SW ALDER                            PORTLAND                     OR               97204
         31127332 POWELL BLVD.                       PORTLAND                     OR               97206
         311316502 SE DIVISION                       PORTLAND                     OR               97236
</Table>

                                       17
<PAGE>

<Table>
<S>                                                  <C>                          <C>              <C>
         31145108 E. EVERGREEN WAY                   EVERETTE                     WA               98208
         3115251 SUNSET BLVD. NORTH                  RENTON                       WA               98055
         31163109 RANIER AVE., SOUTH                 SEATTLE                      WA               98144
         31182029 N.E. BURNSIDE RD.                  GRESHAM                      OR               97030
         312113607 S. E. POWELL BLVD.                PORTLAND                     OR               97236
         31232105 AUBURN WAY SOUTH                   AUBURN                       WA               98002
         31242719 FOURTH PLAIN BLVD                  VANCOUVER                    WA               98661
         312527009 PACIFIC HWY SOUTH                 DES MOINES                   WA               98198
         312713127 PACIFIC AVE.                      TACOMA                       WA               98444
         312812965 SW PACIFIC HWY.                   TIGARD                       OR               97223
         32018207 N. FLORIDA AVENUE                  TAMPA                        FL               33604
         32032005 GULF-TO-BAY                        CLEARWATER                   FL               33765
         32045105 SILVER STAR RD.                    ORLANDO                      FL               32808
         320525720 U.S. HWY 19 NORTH                 CLEARWATER                   FL               33763
         32062509 E. COLONIAL DRIVE                  ORLANDO                      FL               32803
         32072940 34TH STREET SOUTH                  ST. PETERSBURG               FL               33711
         32081415 N. ARMENIA AVENUE                  TAMPA                        FL               33607
         32094100 E. BAY DRIVE, B-10                 CLEARWATER                   FL               33764
         32104001 E. HILLSBOROUGH                    TAMPA                        FL               33610
         32122705 54TH AVE #18                       ST PETERSBURG                FL               33714
         3216820 3RD AVENUE SOUTH                    ST. PETERSBURG               FL               33701
         32185561 PARK BLVD.                         PINELLAS PARK                FL               33781
         32202355-B W. HILLSBOROUGH                  TAMPA                        FL               33603
         32232520 S. SEMORAN BLVD.                   ORLANDO                      FL               32822
         32242532-B BEARSS AVENUE                    TAMPA                        FL               33613
         32264712 S. ORANGE BLOSSOM TR               ORLANDO                      FL               32839
         32274756 US HWY 19                          NEW PORT RICHEY              FL               34652
         32281335 BRANDON BLVD. #F                   BRANDON                      FL               33511
         32291711-B N.50TH STREET                    TAMPA                        FL               33619
         32375169 14TH ST WEST                       BRADENTON                    FL               34207
         32385526 66TH STREET NORTH                  ST. PETERSBURG               FL               33709
         32415701 EDGEWATER DRIVE                    ORLANDO                      FL               32810
         32426851 HWY 17-92 SOUTH                    FERN PARK                    FL               32730
         32483921 N.FLORIDA AVENUE                   TAMPA                        FL               33603
         324911144 US HIGHWAY 19, #3                 PORT RICHEY                  FL               34668
         32533254 CENTRAL AVENUE                     ST. PETERSBURG               FL               33705
         3254806 NE WALDO ROAD                       GAINESVILLE                  FL               32461
         3255246 BLANDING BOULEVARD                  ORANGE PARK                  FL               32073
         3256810 GOLFAIR BOULEVARD                   JACKSONVILLE                 FL               32209
         32575124 BLANDING BLVD. SOUTH               JACKSONVILLE                 FL               32210
         325810152 ATLANTIC BLVD.                    JACKSONVILLE                 FL               32211
         32593547 KINGSTON STREET                    JACKSONVILLE                 FL               32205
         3260854 N. NOVA RD                          DAYTONA BEACH                FL               32117
         32616030 MERRILL ROAD                       JACKSONVILLE                 FL               32211
         32621740 SEMORAN BLVD STE.140               WINTER PARK                  FL               32792
         32636821 W. HILLSBOROUGH #16                TAMPA                        FL               33634
         3264631 W. INTERNATIONAL                    DAYTONA BEACH                FL               32114
</Table>

                                       18
<PAGE>

<Table>
<S>                                                  <C>                          <C>              <C>
         32651036-50 DUNN AVENUE                     JACKSONVILLE                 FL               32218
         3266946 CASSAT AVENUE                       JACKSONVILLE                 FL               32205
         3269833 N. RIDGEWOOD AVENUE                 DAYTONA BEACH                FL               32114
         32705631 UNIVERSITY BLVD                    JACKSONVILLE                 FL               32216
         32711420 NORTH MISSOURI AVE                 LARGO                        FL               33770
         32729303 N. 56TH @BUSCH                     TEMPLE TERRACE               FL               33617
         32731560 S. FRENCH                          SANFORD                      FL               32771
         32744207 W. COLONIAL                        ORLANDO                      FL               32808
         327510526 E. COLONIAL DRIVE                 ORLANDO                      FL               32817
         32774644 GANDY BLVD                         TAMPA                        FL               33611
         32781523 S. CRYSTAL LAKE DR.                ORLANDO                      FL               32806
         32792191 B-TAMIAMI TRAIL                    PORT CHARLOTTE               FL               33948
         3280408 N. DALE MABRY HWY                   TAMPA                        FL               33609
         32842920 35TH ST                            ORLANDO                      FL               32839
         3287833 BEACH BLVD                          JACKSONVILLE                 FL               32250
         3288500 34TH STREET SOUTH                   ST. PETERSBURG               FL               33712
         32899741 SAN JOSE BLVD                      JACKSONVILLE                 FL               32257
         32901600 PARK AVENUE                        ORANGE PARK                  FL               32073
         32911538 N. W. 6TH STREET                   GAINSVILLE                   FL               32601
         3292905 N. WILSON                           BARTOW                       FL               33830
         32938230 4TH STREET NORTH                   ST. PETERSBURG               FL               33702
         32945509 US HIGHWAY 19 NORTH                NEW PORT RICHEY              FL               34652
         32954812 A EAST BUSCH BLVD.                 TAMPA                        FL               33617
         32962317 E. HILLSBOROUGH AVE                TAMPA                        FL               33610
         32975130 S. DALE MABRY HWY                  TAMPA                        FL               33611
         329811502 N. NEBRASKA AVE                   TAMPA                        FL               33617
         32991750 SUN SHADOW DRIVE                   CASSELBERRY                  FL               32707
         33023050 FIRST AVENUE NORTH                 ST PETERSBURG                FL               33713
         33066935 LITTLE ROAD                        NEW PORT RICHEY              FL               34655
         33115383 EHRLICH ROAD,STE 101               TAMPA                        FL               33625
         33152400 SW COLLEGE ROAD                    OCALA                        FL               34474
         33216581 102ND AVE                          PINELLAS PARK                FL               33782
         332413502 N. NEBRASKA AVENUE                TAMPA                        FL               33613
         3326817 E. BLOOMINGDALE AVE.                BRANDON                      FL               33511
         4001658 W. HOLT BLVD.                       ONTARIO                      CA               91762
         400216920 FOOTHILL BLVD.                    FONTANA                      CA               92336
         4003804  W. HIGHLAND AVE.                   SAN BERNARDINO               CA               92405
         4004527 E. FOOTHILL BLVD.                   RIALTO                       CA               92376
         40084003 SOUTHWESTERN AVE.                  LOS ANGELES                  CA               90062
         40091377 WEST IMPERIAL                      LOS ANGELES                  CA               90044
         40105848 SANTA MONICA BLVD.                 LOS ANGELES                  CA               90038
         40113025 N. BROADWAY                        LINCOLN HEIGHTS              CA               90032
         401422 WEST 7TH ST.                         CALEXICO                     CA               92231
         40165803 N. FIGUEROA                        LOS ANGELES                  CA               90042
         4017745 S. VERMONT                          LOS ANGELES                  CA               90005
         40181049 N. MOUNT VERNON AVE                COLTON                       CA               92324
         40198905 VENICE BLVD.                       LOS ANGELES                  CA               90034
</Table>

                                       19
<PAGE>

<Table>
<S>                                                  <C>                          <C>              <C>
         402020469 SHERMAN                           CANOGA PARK                  CA               91306
         40211803 N. CAHUENGA BLVD.                  HOLLYWOOD                    CA               90028
         40228652-A WOODMAN AVE.                     ARLETA                       CA               91331
         40247654 WOODMAN AVENUE                     VAN NUYS                     CA               91405
         4029507 N. TUSTIN AVENUE                    ORANGE                       CA               92667
         40321993 E. FLORENCE                        LOS ANGELES                  CA               90001
         40331232 E. FLORENCE                        LOS ANGELES                  CA               90001
         40345151 W. PICO BLVD                       LOS ANGELES                  CA               90019
         40353928 W. ROSECRANS                       HAWTHORNE                    CA               90250
         40361648 W. CARSON ST                       TORRANCE                     CA               90501
         40374005 W. 3RD ST                          LOS ANGELES                  CA               90020
         4038104-A W. ANAHEIM                        WILMINGTON                   CA               90744
         403913131 HARBOR BLVD                       GARDEN GROVE                 CA               92643
         40407335 VAN NUYS BLVD.                     VAN NUYS                     CA               91405
         40421514 S. VERMONT ST. STE.J               LOS ANGELES                  CA               90006
         4044500 E. WASHINGTON BLVD                  LOS ANGELES                  CA               90015
         40451070 STORY ROAD                         SAN JOSE                     CA               95122
         40471136 W.MAIN STREET                      MERCED                       CA               95340
         40484970 E. KINGS CANYON                    FRESNO                       CA               93727
         40493241 W. SHAW                            FRESNO                       CA               93711
         4050415 PARADISE ROAD                       MODESTO                      CA               95351
         40514128 CHESTER AVENUE                     BAKERSFIELD                  CA               93301
         40526300 WHITE LANE                         BAKERSFIELD                  CA               93309
         40531540 N. FIRST STREET                    FRESNO                       CA               93703
         405427300 HESPERIAN                         HAYWARD                      CA               94541
         4055591 TRES PINO'S ROAD                    HOLLISTER                    CA               95023
         40561825 COUNTRYSIDE                        TURLOCK                      CA               95380
         40581700 HIGH STREET                        DELANO                       CA               93215
         4059351 BELLEVUE                            ATWATER                      CA               95301
         40602020 W.BRIGGS MORE                      MODESTO                      CA               95350
         40615422 N. BLACKSTONE                      FRESNO                       CA               93710
         40622517 #B MITCHELL ROAD                   CERES                        CA               95307
         40631190 EAST F STREET                      OAKDALE                      CA               95361
         4064420 H STREET                            MODESTO                      CA               95354
         40652001-C TULLY ROAD                       MODESTO                      CA               95350
         40661550 YOSEMITE BLVD.                     MODESTO                      CA               95354
         40674831 BUTLER                             FRESNO                       CA               93727
         40686465 NILES STREET                       BAKERSFIELD                  CA               93306
         406950 W. OLIVE                             PORTERVILLE                  CA               93257
         407013220 SAN PABLO AVENUE                  SAN PABLO                    CA               94608
         40711833 N. TEXAS                           FAIRFIELD                    CA               94533
         40721320 STANDIFORD, STE E8                 MODESTO                      CA               95350
         40732508 OAKDALE ROAD                       MODESTO                      CA               95355
         40741187 S. MAIN                            MANTECA                      CA               95336
         40751610 E.HATCH ROAD                       MODESTO                      CA               95351
         40762700 SAN PABLO AVENUE                   OAKLAND                      CA               94612
         40779001 INTERNATIONAL BLVD                 OAKLAND                      CA               94601
</Table>

                                       20
<PAGE>

<Table>
<S>                                                  <C>                          <C>              <C>
         40783229 INTERNATIONAL BLVD                 OAKLAND                      CA               94601
         40793889 SAN PABLO AVENUE                   EMERYVILLE                   CA               94608
         4080610 HEGENBERGER                         OAKLAND                      CA               94601
         40822038 MISSION STREET                     SAN FRANCISCO                CA               94110
         40861189 E. MARCH LANE                      STOCKTON                     CA               95210
         40872300 CUTTING BLVD.                      RICHMOND                     CA               94804
         40892150 E. ELMONTE                         DINUBA                       CA               93618
         4090170 E.CROSS                             TULARE                       CA               93274
         40911550 N. BEN MADDOX                      VISALIA                      CA               93292
         40923637 S. MOONEY                          VISALIA                      CA               93277
         40936000 LINDHURST                          MARYSVILLE                   CA               95901
         40945227 ELKHORN BLVD                       SACRAMENTO                   CA               95842
         40955427 AUBURN BLVD                        SACRAMENTO                   CA               95841
         40967615 GREENBACK                          CITRUS HEIGHTS               CA               95610
         40977250 FAIR OAKS BLVD,STE.F               CARMICHAEL                   CA               95608
         40984341 ELKHORN BLVD.                      SACRAMENTO                   CA               95842
         41012419 DEL PASO BLVD                      SACRAMENTO                   CA               95815
         41024211 NORWOOD AVENUE                     SACRAMENTO                   CA               95838
         41036650 VALLEY HI DRIVE                    SACRAMENTO                   CA               95823
         41046527 FLORIN ROAD                        SACRAMENTO                   CA               95828
         41065609 W. SUNSET BLVD.                    HOLLYWOOD                    CA               90028
         41102774 WILLOW AVE. #115                   CLOVIS                       CA               93612
         41111585 N.W. WEST AVENUE                   FRESNO                       CA               93728
         4112432 E. BULLARD AVENUE                   FRESNO                       CA               93710
         41132134 WEST SUNSET BLVD.                  LOS ANGELES                  CA               90026
         41144911 S SEPULVEDA BLVD                   CULVER CITY                  CA               90230
         45011411 N. JONES BLVD.                     LAS VEGAS                    NV               89108
         45023125 E. TROPICANA AVE.                  LAS VEGAS                    NV               89121
         45034300 E. CHARLESTON                      LAS VEGAS                    NV               89121
         45041155 E. TWAIN                           LAS VEGAS                    NV               89109
         45051000 N. RANCHO RD.                       LAS VEGAS                   NV               89106
         45064972 MARYLAND PARKWAY                   LAS VEGAS                    NV               89119
         45073108 N. LAS VEGAS BLVD.                 LAS VEGAS                    NV               89115
         4508235 N. EASTERN AVE.                     LAS VEGAS                    NV               89101
         45092987 N. LAS VEGAS BLVD.                 LAS VEGAS                    NV               89030
         45102255 LAS VEGAS BLVD. S.                 LAS VEGAS                    NV               89104
         45111941 N. DECATUR BLVD.                   LAS VEGAS                    NV               89108
         45123602 E. BONANZA RD.                     LAS VEGAS                    NV               89110
         4514742 SOUTH BOULDER HWY                   HENDERSON                    NV               89015
         45165516 BOULDER HWY                        LAS VEGAS                    NV               89122
         91013278 S. WADSWORTH BLVD.                 LAKEWOOD                     CO               80227

         61003317 WALNUT HILL LANE                   IRVING                       TX               75062SSM
         61013658 N. BELTLINE STE3664                IRVING                       TX               75038SSM
         61023418 OAK LAWN AVE                       DALLAS                       TX               75219SSM
         61049730 ABRAMS ROAD                        DALLAS                       TX               75243SSM
         61052810 TRINITY MILLS ROAD                 CARROLLTON                   TX               75006SSM
</Table>

                                       21
<PAGE>

<Table>
<S>                                                  <C>                          <C>              <C>
         61082230 NORTH COLLINS STREET               ARLINGTON                    TX               76011SSM
         61122540 NORTH JOSEY                        CARROLLTON                   TX               75006SSM
         614515037 E. COLFAX AVE.                    AURORA                       CO               80011SSM
         6146320 NORTH BROADWAY                      DENVER                       CO               80203SSM
         6147640 SIXTEENTH                           DENVER                       CO               80202SSM
         61531017 E. COLISEUM                        FT. WAYNE                    IN               46805SSM
         61573675 SATELLITE BLVD. #830               DULUTH                       GA               30096SSM
         61582620 S. MADISON AVE.                    INDIANAPOLIS                 IN               46225SSM
         61653655 S. GRAND                           ST. LOUIS                    MO               63118SSM
         61674720 CENTRAL AVE. SE                    ALBUQUERQUE                  NM               87108SSM
         61698800 WASHINGTON                         THORNTON                     CO               80229SSM
         61701520 BROAD RIVER RD.                    COLUMBIA                     SC               29210SSM
         6179810 FM 1960 WEST                        HOUSTON                      TX               77090SSM
         6181933 S.W.W. WHITE RD.                    SAN ANTONIO                  TX               78220SSM
         61824447 FREDERICKSBURG RD.                 SAN ANTONIO                  TX               78201SSM
         6192145 E. COMMERCE @                       SAN ANTONIO                  TX               78205SSM
         619811854 BISCAYNE BLVD                     NORTH MIAMI                  FL               33181SSM
         61991435 W. 49TH STREET                     HIALEAH                      FL               33012SSM
         62001231 GREENWAY DRIVE                     IRVING                       TX               75038SSM
         62028215 S. DIXIE HWY                       MIAMI                        FL               33143SSM
</Table>

See also Schedule 7.2(u) with respect to the properties in North Charleston,
South Carolina and the property in Indianapolis, Indiana.

                                       22
<PAGE>

                                 SCHEDULE 5.1(q)

                        INTELLECTUAL PROPERTIES SCHEDULE

    o   See Litigation Schedule regarding Ace Currency Exchange, Inc. v. Ace
        Cash Express, Inc.

    TRADEMARKS

<Table>
<Caption>

OWNER                       TRADEMARK NAME                 JURISDICTION          APPLICATION       REGISTRATION
                                                                                 STATUS            NUMBER/
                                                                                                   APPLICATION NO.
--------------------------- ------------------------------ --------------------- ----------------- -------------------
<S>                         <C>                            <C>                   <C>               <C>

Ace Cash Express, Inc.      A C E AMERICA'S CASH EXPRESS   Mexico                Registered        667241
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Ace Cash Express, Inc.      A A C E AMERICA'S CASH         United States of      Registered        1,831,546
                            EXPRESS and design             America
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Ace Cash Express, Inc.      A A-C-E AMERICA'S CASH         Canada                Registered        TMA445484
                            EXPRESS and design
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Ace Cash Express, Inc.      ACE                            United States of      Registered        2,155,964
                                                           America
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Ace Cash Express, Inc.      A A C E and design             United States of      Registered        1,806,389
                                                           America
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Ace Cash Express, Inc.      ACE AMERICA'S CASH EXPRESS     Texas                 Registered        052565
                            and design
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Ace Cash Express, Inc.      ACE AMERICA'S CASH EXPRESS     Texas                 Registered        052564
                            and design
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Ace Cash Express, Inc.      ACE CANADA'S CASH EXPRESS      Canada                Pending           Serial No.
                            and design                                                             1132776
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Ace Cash Express, Inc.      AFTER ALL... IT'S YOUR MONEY!  United States of      Pending           Serial No.
                                                           America                                 76/490562
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Ace Cash Express, Inc.      CASH IN ON OUR CONVENIENCE     United States of      Registered        1,846,958
                                                           America
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Ace Cash Express, Inc.      CASH IN ON OUR CONVENIENCE     United States of      Registered        1,831,538
                                                           America
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Ace Cash Express, Inc.      CASH IN ON OUR CONVENIENCE     United States of      Registered        2,108,173
                                                           America
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Ace Cash Express, Inc.      CASH IS OUR MIDDLE NAME        United States of      Registered        2,318,222
                                                           America
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Ace Cash Express, Inc.      IT'S YOUR MONEY. WHY WAIT?     United States of      Pending           Serial No.
                                                           America                                 76/491255
--------------------------- ------------------------------ --------------------- ----------------- -------------------
</Table>

<PAGE>

<Table>
<S>                         <C>                            <C>                   <C>               <C>
Check Express, Inc.         CHECK EXPRESS                  United States of      Registered        1,370,520
                                                           America
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Check Express, Inc.         CHECK EXPRESS                  Canada                Registered        TMA496291
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Check Express, Inc.         CHECK EXPRESS                  Mexico                Registered        482464
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Check Express, Inc.         CHECK EXPRESS                  Mexico                Registered        486677
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Check Express, Inc.         CHECK EXPRESS                  United States of      Pending           Serial No.
                                                           America                                 76/491366
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Check Express, Inc.         CHECK EXPRESS                  United States of      Pending           Serial No.
                                                           America                                 76/490563
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Check Express, Inc.         CHECK EXPRESS and design       United States of      Registered        1,476,206
                                                           America
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Check Express, Inc.         CHECK EXPRESS MONEY CENTERS    Canada                Registered        TMA503892
                            and design
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Check Express, Inc.         CHECK EXPRESS MONEY CENTERS    Mexico                Registered        503683
                            and design
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Check Express, Inc.         CHECK EXPRESS MONEY CENTERS    Mexico                Registered        514567
                            and design
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Check Express, Inc.         EXPRESS and check design       United States of      Registered        1,489,647
                                                           America
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Check Express, Inc.         EXPRESS and check design       United States of      Registered        2,183,193
                                                           America
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Check Express, Inc.         EXPRESS and check design       Canada                Registered        TMA532292
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Check Express, Inc.         EXPRESS and check design       Mexico                Pending           Serial No.
                                                                                                   233980
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Check Express, Inc.         EXPRESS and check design       Mexico                Registered        514566
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Check X Change Corporation  CHECK-X-CHANGE                 United States of      Registered        1,793,853
                                                           America
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Check X Change Corporation  CHECK-X-CHANGE and design      Oregon                Registered        0015726
--------------------------- ------------------------------ --------------------- ----------------- -------------------

Check X Change Corporation  X-CHANGE-CHECK-X-CHANGE and    United States of      Registered        1,374,191
                            design                         America
</Table>

                                       2
<PAGE>

     PATENT APPLICATIONS

<Table>
<Caption>
           OWNER                        TITLE              FILING DATE    APPLICATION NO.       ATTY. DOCKET NO.
----------------------------- --------------------------- -------------- ------------------ --------------------------
<S>                           <C>                         <C>            <C>                <C>

Ace Cash Express, Inc.        Automated    Method    and   05/09/2002       10/142,351             300003-1001
                              System for Enrollment
----------------------------- --------------------------- -------------- ------------------ --------------------------

Ace Cash Express, Inc.        Check and Cash  Dispensing   06/19/2002       10/175,584             300003-1002
                              Machine and Method
----------------------------- --------------------------- -------------- ------------------ --------------------------

</Table>

                                       3
<PAGE>

                                 SCHEDULE 5.1(v)

                      DEPOSIT ACCOUNTS AND ARMORED COURIERS

(i)      Deposit Accounts of Company:

<Table>
<Caption>
ACCOUNT NAME                                 BANK ACCT #       BANK NAME
-------------------------------------------------------------------------------
<S>                                          <C>               <C>
ARKANSAS DEP                                 89440513          BANK OF AMERICA
ARKANSAS R/I                                 89440526          BANK OF AMERICA
ARKANSAS CURR                                89440539          BANK OF AMERICA
NEW MEXICO DEP                               109650382         BANK OF AMERICA
NEW MEXICO CURR                              109650390         BANK OF AMERICA
NEW MEXICO R/I                               109650408         BANK OF AMERICA

NASHVILLE TN. DEP                            112485669         BANK OF AMERICA

NASHVILLE TN. CURR                           112485677         BANK OF AMERICA

NASHVILLE TN. R/I                            112485685         BANK OF AMERICA
WICHITA KANSAS DEP                           2861440603        BANK OF AMERICA
WICHITA KANSAS R/I                           2861440616        BANK OF AMERICA
WICHITA KANSAS CURR                          2861440629        BANK OF AMERICA

SAVANNAH GA. CURR                            3266408527        BANK OF AMERICA

SAVANNAH GA. DEP                             3266408535        BANK OF AMERICA

SAVANNAH GA. R/I                             3266408543        BANK OF AMERICA
WILMINGTON  NC. CURR                         3783622508        BANK OF AMERICA
WILMINGTON  NC. DEP                          3783622511        BANK OF AMERICA
WILMINGTON  NC. R/I                          3783622524        BANK OF AMERICA
CHARLESTON SC. CURR                          3783730461        BANK OF AMERICA
CHARLESTON SC. DEP                           3783730474        BANK OF AMERICA
CHARLESTON SC. R/I                           3783730487        BANK OF AMERICA
CAPITOL R/I                                  3783832589        BANK OF AMERICA
CAPITOL CURR                                 3783832592        BANK OF AMERICA
CAPITOL DEP                                  3783832602        BANK OF AMERICA
HUNTSVILLE CURR                              4771913193        BANK OF AMERICA
HUNTSVILLE DEP                               4771913201        BANK OF AMERICA
HUNTSVILLE R/I                               4771913219        BANK OF AMERICA
PINE BLUFF DEP                               8007072791        BANK OF AMERICA
PINE BLUFF R/I                               8007072805        BANK OF AMERICA
</Table>

<PAGE>

<Table>
<Caption>
ACCOUNT NAME                                 BANK ACCT #       BANK NAME
-------------------------------------------------------------------------------
<S>                                          <C>               <C>
PINE BLUFF CURR                              8007072813        BANK OF AMERICA
OKLAHOMA R/I                                 70108364923       BANK OF AMERICA
OKLAHOMA DEP                                 70108364931       BANK OF AMERICA
OKLAHOMA CURR                                70108364958       BANK OF AMERICA

ST.LOUIS MO. DEP                             100101249510      BANK OF AMERICA

ST.LOUIS MO. CURR                            100101249529      BANK OF AMERICA

ST.LOUIS MO. R/I                             100101249537      BANK OF AMERICA

FT.WAYNE IN. CURR                            715001269599      BANK ONE
FT.WAYNE IN. DEP                             715001269615      BANK ONE
FT.WAYNE IN. R/I                             715002369607      BANK ONE

SAN / AUS DEP                                43509122128       JPMORGAN CHASE BANK
SAN / AUS R/I                                43509122144       JPMORGAN CHASE BANK
SAN / AUS CURR                               43509122151       JPMORGAN CHASE BANK

EL PASO DEP                                  43509122169       JPMORGAN CHASE BANK

EL PASO R/I                                  43509122177       JPMORGAN CHASE BANK

EL PASO CURR                                 43509122185       JPMORGAN CHASE BANK

VALLEY DEP                                   84609288218       JPMORGAN CHASE BANK

VALLEY R/I                                   84609288226       JPMORGAN CHASE BANK

VALLEY CURR                                  84609288234       JPMORGAN CHASE BANK

NEW ORLEANS DEP                              812315781         HIBERNIA NAT'L
NEW ORLEANS CURR                             812315803         HIBERNIA NAT'L
NEW ORLEANS R/I                              812315811         HIBERNIA NAT'L

LONGVIEW TX CURR                             3420000752        HIBERNIA NAT'L

LONGVIEW TX DEP                              3420000760        HIBERNIA NAT'L
</Table>

                                       2
<PAGE>

<Table>
<Caption>
ACCOUNT NAME                                 BANK ACCT #       BANK NAME
-------------------------------------------------------------------------------
<S>                                          <C>               <C>
LONGVIEW TX R/I                              3420000779        HIBERNIA NAT'L

CLEVELAND OH. DEP                            3765199           NATIONAL CITY

CLEVELAND OH. CURR                           3765201           NATIONAL CITY

CLEVELAND OH. R/I                            3765228           NATIONAL CITY

INDIANAN CURR                                501912286         NATIONAL CITY

INDIANAN DEP                                 501912338         NATIONAL CITY

INDIANAN R/I                                 501912341         NATIONAL CITY

PITTSBURGH CURR                              4600658771127     NATIONAL CITY

PITTSBURGH DEP                               4600658771143     NATIONAL CITY

PITTSBURGH R/I                               4600658771151     NATIONAL CITY

HOMEWOOD AL. DEP                             301060694         REGION'S
HOMEWOOD AL. CURR                            301060708         REGION'S
HOMEWOOD AL. R/I                             301060813         REGION'S
ALBANY CURR                                  2507841006        REGION'S
ALBANY DEP                                   2507842206        REGION'S
ALBANY R/I                                   2507843406        REGION'S

CORPUS CHRISTI R/I                           1411001371        TEXAS CAPITOL

CORPUS CHRISTI DEP                           1411001678        TEXAS CAPITOL

CORPUS CHRISTI CURR                          1411001686        TEXAS CAPITOL

NO. CAROLINA DEP                             2000000566115     WACHOVIA

NO. CAROLINA R/I                             2000000566128     WACHOVIA

NO. CAROLINA CURR                            2000000566131     WACHOVIA
</Table>

                                       3
<PAGE>

<Table>
<Caption>
ACCOUNT NAME                                 BANK ACCT #       BANK NAME
-------------------------------------------------------------------------------
<S>                                          <C>               <C>
ACE CollectionsTrustAcct/ALA                 2000014786923     WACHOVIA
ACE CollectionsTrustAcct/DITORE              2000014787809     WACHOVIA

SO.CAROLINA DEP                              2010000169829     WACHOVIA

SO.CAROLINA R/I                              2010000169832     WACHOVIA

SO.CAROLINA CURR                             2010000175703     WACHOVIA

VIRGINIA DEP                                 2050000054237     WACHOVIA

VIRGINIA R/I                                 2050000054240     WACHOVIA

VIRGINIA CURR                                2050000054253     WACHOVIA
GEORGIA DEP                                  2080000230403     WACHOVIA
GEORGIA R/I                                  2080000230416     WACHOVIA
GEORGIA CURR                                 2080000230429     WACHOVIA
FLORIDA DEP                                  2090001409155     WACHOVIA
FLORIDA CURR                                 2090001409168     WACHOVIA
FLORIDA R/I                                  2090001409171     WACHOVIA
                                             2090001409414     WACHOVIA

CALIFORNIA R/I                               4091219998        WELLS FARGO
CALIFORNIA DEP                               4091220004        WELLS FARGO
CALIFORNIA CURR                              4091220012        WELLS FARGO
BRYAN TX. DEP                                4122047780        WELLS FARGO
BRYAN TX. CURR                               4122049745        WELLS FARGO
BRYAN TX. R/I                                4122099898        WELLS FARGO
ACH COLLECTIONS / RETURNS                    4123473928        WELLS FARGO
CORE DATA                                    4127070845        WELLS FARGO
PHOENIX AZ. DEP                              4159500198        WELLS FARGO
PHOENIX AZ. R/I                              4159500214        WELLS FARGO
PHOENIX AZ. CURR                             4159500222        WELLS FARGO

WASHINGTON DEP                               4159662725        WELLS FARGO

WASHINGTON CURR                              4159662733        WELLS FARGO
</Table>

                                       4
<PAGE>

<Table>
<Caption>
ACCOUNT NAME                                 BANK ACCT #       BANK NAME
-------------------------------------------------------------------------------
<S>                                          <C>               <C>
WASHINGTON R/I                               4159662741        WELLS FARGO
DENVER CO. CURR                              4159663293        WELLS FARGO
DENVER CO. R/I                               4159663301        WELLS FARGO
DENVER CO. DEP                               4159663319        WELLS FARGO
COLORADO SPRINGS R/I                         4159663335        WELLS FARGO
COLORADO SPRINGS CURR                        4159663343        WELLS FARGO
COLORADO SPRINGS DEP                         4159663350        WELLS FARGO
FRANCHISE REVENUE                            4159698323        WELLS FARGO
CORPORATE DEPOSIT                            4159698331        WELLS FARGO
DALLAS / FT.WORTH DEP                        4159698356        WELLS FARGO
DALLAS / FT.WORTH CURR                       4159698364        WELLS FARGO
DALLAS / FT.WORTH R/I                        4159698380        WELLS FARGO
MONEY ORDERS                                 4159698406        WELLS FARGO
HOUSTON TX. DEP                              4159698489        WELLS FARGO
HOUSTON TX. CURR                             4159698497        WELLS FARGO
HOUSTON TX. R/I                              4159698513        WELLS FARGO
INSURANCE                                    4159698521        WELLS FARGO
CONCENTRATION                                4159698539        WELLS FARGO
DEFERRED COMP.                               4159698562        WELLS FARGO
401K DEPOSIT                                 4159698570        WELLS FARGO
PORTLAND OR. DEP                             4178528691        WELLS FARGO
PORTLAND OR. R/I                             4178528709        WELLS FARGO
PORTLAND OR. CURR                            4178528717        WELLS FARGO
NEVADA CURR                                  4311262364        WELLS FARGO
NEVADA DEP                                   4311262372        WELLS FARGO
NEVADA R/I                                   4311262380        WELLS FARGO
DIRECT DEP ACCT                              4375652658        WELLS FARGO
GNB DEPOSITORY ACCT                          4375669348        WELLS FARGO
MEDICAL BENEFITS                             4375669561        WELLS FARGO
CALIFORNIA OPER                              4375687324        WELLS FARGO
LAREDO TX. CURR                              4496885856        WELLS FARGO
LAREDO TX. DEP                               4496886227        WELLS FARGO
LAREDO TX. R/I                               4496886235        WELLS FARGO
IBM CREDIT ACCOUNT                           4584708721        WELLS FARGO
CENTRAL DISBURSING ACCOUNT                   4588542456        WELLS FARGO
PAYROLL                                      4759630080        WELLS FARGO
ACCOUNTS PAYABLE OPER                        4759630098        WELLS FARGO
</Table>

                                       5
<PAGE>

(ii)     Deposit Accounts of Company's Subsidiaries (other than ACE Funding):

Q C & G FINANCIAL INC.                     328911240          FIRST AMERICAN

(iii)    Armored courier services that transport Collateral:

     o   Arkansas Armored Car Service, L.L.C.

     o   Armored Transport Texas, Inc. a/k/a AT Systems Southwest, Inc.

     o   Brink's Incorporated

     o   Dunbar Armored, Inc.

     o   First Star Transport

     o   Loomis Fargo & Co.

     o   MidFlorida Armored

     o   Rochester Armored Car Co., Inc.

     o   Triple D Security, Inc.

(iv)     Agreements with armored courier services that transport Collateral:

     o   Armored Car Service Agreement between Arkansas Armored Car Service,
         L.L.C. and the Company

     o   Armored Car Service Agreement between Armored Transport Texas, Inc.
         a/k/a AT Systems Southwest, Inc. and the Company

     o   Contract No. 447961 between Brink's Incorporated and the Company

     o   Service Contract No. 11000375 between Dunbar Armored, Inc. and the
         Company

     o   Armored Car Service Agreement between First Star Transport and the
         Company

     o   Service Agreement between Loomis Fargo & Co. and the Company

     o   Agreement between MidFlorida Armored and the Company

     o   Agreement between Rochester Armored Car Co, Inc. and the Company

     o   Agreement between Triple D Security, Inc. and the Company

                                       6
<PAGE>

                               SCHEDULE 7.2(b)(IV)

                             PERMITTED ENCUMBRANCES

<Table>
<Caption>
        JURISDICTION          FILE DATE      SECURED PARTY             COLLATERAL
        -------------------   ------------   ------------------------  ----------
<S>                           <C>            <C>                       <C>
        California            4/28/97        State of California,      Tax Lien
                                             Employment Development
                                             Department
</Table>

o        Liens or security interests on cash used to secure letters of credit.

o        The following items are disclosed because the Loan Parties obtain
         short-term possession and control over certain assets of third parties:

               o    that certain Marketing and Servicing Agreement dated as of
                    October 21, 2002 by and between Republic Bank & Trust
                    Company and the Company, as the same may be amended,
                    supplemented, restated, otherwise modified or superceded;

               o    that certain Money Order Agreement dated as of April 16,
                    1998 between the Company and Travelers, as the same may be
                    amended, supplemented, restated, otherwise modified or
                    superceded;

               o    that certain Money Transfer Agreement dated as of June 30,
                    2000 among the Company, Travelers and MoneyGram Payment
                    Systems, Inc., as the same may be amended, supplemented,
                    restated, otherwise modified or superceded;

               o    any contract of the Loan Parties to accept customer payments
                    of utilities, as the same may be amended, supplemented,
                    restated, otherwise modified or superceded;

               o    any contract of the Loan Parties to accept customer funds
                    for pre-paid calling cards or other debit cards, as the same
                    may be amended, supplemented, restated, otherwise modified
                    or superceded;

               o    any contract of the Loan Parties to sell lottery tickets, as
                    the same may be amended, supplemented, restated, otherwise
                    modified or superceded; and

               o    any and all contracts similar in nature to any of the
                    foregoing.

<PAGE>

                                 SCHEDULE 7.2(u)

                          SALE LEASE-BACK TRANSACTIONS

o        The Company may enter into sale and lease-back transactions for any or
         all of the following properties:

               o    E. Meeting Street, North Charleston, South Carolina (owned
                    by Check Express of South Carolina, Inc.);

               o    2122 Cosgrove Ave., North Charleston, South Carolina (owned
                    by Check Express South Carolina, Inc.);

               o    2620 Madison Ave., Indianapolis, Indiana (owned by Check
                    Express, Inc.); and

               o    3921 N. Florida Ave., Tampa, Florida (owned by Check Express
                    Florida, Inc.).

<PAGE>

EXHIBIT A-1

THIS INSTRUMENT IS SUBORDINATE (INCLUDING WITH RESPECT TO LIEN AND PAYMENT
PRIORITY) IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN
INTERCREDITOR AGREEMENT, DATED AS OF THE DATE HEREOF, BY AND AMONG THE COMPANY,
AGENT AND CERTAIN OTHER CREDITORS OF THE COMPANY (AS AMENDED, MODIFIED OR
RESTATED FROM TIME TO TIME, THE "INTERCREDITOR AGREEMENT") TO THE INDEBTEDNESS
AND OTHER LIABILITIES OWED BY THE COMPANY UNDER AND PURSUANT TO THAT CERTAIN
CREDIT AGREEMENT, DATED AS OF THE DATE HEREOF, BY AND AMONG THE COMPANY, THE
LENDERS FROM TIME TO TIME PARTY THERETO, WELLS FARGO BANK TEXAS, NATIONAL
ASSOCIATION, AS ADMINISTRATIVE AGENT FOR SUCH LENDERS, AND JPMORGAN CHASE BANK,
AS AGENT FOR SUCH LENDERS, AS THE SAME MAY BE AMENDED OR MODIFIED FROM TIME TO
TIME AND EACH RELATED "CREDIT DOCUMENTS" (AS SUCH TERM IS DEFINED THEREIN), AND
EACH HOLDER HEREOF, BY ITS ACCEPTANCE HEREOF, ACKNOWLEDGES AND AGREES TO BE
BOUND BY THE PROVISIONS OF THE INTERCREDITOR AGREEMENT.

                    SENIOR SUBORDINATED SECURED SERIES A NOTE
                             ACE CASH EXPRESS, INC.
                               DUE MARCH 31, 2006

$10,000,000                                                      March 31, 2003

         FOR VALUE RECEIVED, the undersigned, AcE CASH EXPRESS, INC., a Texas
corporation (the "Company"), hereby promises to pay to AMERICAN CAPITAL
STRATEGIES, LTD., a Delaware corporation, or its registered assigns (the
"Holder"), the principal sum of TEN MILLION DOLLARS ($10,000,000), or such
lesser amount as may be outstanding hereunder from time to time, with interest
thereon on the terms and conditions set forth in the hereinafter defined
Purchase Agreement, and the payment of the principal and premium, if any, and
interest on this Note are secured pursuant to the terms of the Security
Documents (as defined in the Purchase Agreement).

         Notwithstanding any provision to the contrary in this Note, the
Purchase Agreement, or any other agreement, the Company shall not be required to
pay, and the Holder shall not be permitted to contract for, take, reserve,
charge or receive, any compensation, which constitutes interest under applicable
law in excess of the maximum amount of interest permitted by law.

         This Note is one of a series of Series A Notes issued March 31, 2003,
pursuant to the Note Purchase Agreement, dated as of March 31, 2003 (as amended,
restated or otherwise modified from time to time, the "Purchase Agreement"), by
and among the Company, Holder, the other Purchasers signatory thereto and
American Capital Financial Services, Inc., as Agent for Holder and the other
Purchasers, and Holder is entitled to the benefits thereof. All capitalized
terms used but not defined herein shall have the meanings respectively ascribed
to them in the

<PAGE>

Purchase Agreement. Each Holder of this Note will be deemed, by its acceptance
hereof, to have agreed to the provisions and to have made the representations
and warranties set forth in Article 6 of the Purchase Agreement.

         This Note is transferable only by surrender hereof at the principal
office of the Company in Irving, Texas, duly endorsed or accompanied by a
written instrument of transfer duly executed by the registered Holder of this
Note as shown in the register of the Company or as otherwise provided in the
Purchase Agreement.

         This Note is also subject to mandatory and optional prepayment, in
whole or from time to time in part, at the times and on the terms specified in
the Purchase Agreement, but not otherwise.

         If an Event of Default (as such term is defined in the Purchase
Agreement) occurs and is continuing, the unpaid principal of this Note may be
declared or otherwise become due and payable in the manner, at the price
(including any applicable premium) and with the effect provided in the Purchase
Agreement.

         Payments of principal, interest on and any premium with respect to this
Note are secured by the liens granted pursuant to the terms of the Security
Documents.

         This Note and the rights and obligations of the parties hereto shall be
deemed to be contracts under the laws of the State of Maryland and for all
purposes shall be governed by and construed and enforced in accordance with the
laws of said state, except for its rules relating to the conflict of laws.

         IN WITNESS WHEREOF, this Note is executed and delivered as of the date
first set forth above.

                                ACE CASH EXPRESS, INC.

                                By:____________________________________
                                Name:__________________________________
                                Title:_________________________________

<PAGE>

                                    SCHEDULES

<PAGE>

EXHIBIT A-2

THIS INSTRUMENT IS SUBORDINATE (INCLUDING WITH RESPECT TO LIEN AND PAYMENT
PRIORITY) IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN
INTERCREDITOR AGREEMENT, DATED AS OF THE DATE HEREOF, BY AND AMONG THE COMPANY,
AGENT AND CERTAIN OTHER CREDITORS OF THE COMPANY (AS AMENDED, MODIFIED OR
RESTATED FROM TIME TO TIME, THE "INTERCREDITOR AGREEMENT") TO THE INDEBTEDNESS
AND OTHER LIABILITIES OWED BY THE COMPANY UNDER AND PURSUANT TO THAT CERTAIN
CREDIT AGREEMENT, DATED AS OF THE DATE HEREOF, BY AND AMONG THE COMPANY, THE
LENDERS FROM TIME TO TIME PARTY THERETO, WELLS FARGO BANK TEXAS, NATIONAL
ASSOCIATION, AS ADMINISTRATIVE AGENT FOR SUCH LENDERS, AND JPMORGAN CHASE BANK,
AS AGENT FOR SUCH LENDERS, AS THE SAME MAY BE AMENDED OR MODIFIED FROM TIME TO
TIME AND EACH RELATED "CREDIT DOCUMENTS" (AS SUCH TERM IS DEFINED THEREIN), AND
EACH HOLDER HEREOF, BY ITS ACCEPTANCE HEREOF, ACKNOWLEDGES AND AGREES TO BE
BOUND BY THE PROVISIONS OF THE INTERCREDITOR AGREEMENT.

                    SENIOR SUBORDINATED SECURED SERIES B NOTE
                             ACE CASH EXPRESS, INC.
                               DUE MARCH 31, 2008

$10,000,000                                                      March 31, 2003

         FOR VALUE RECEIVED, the undersigned, AcE CASH EXPRESS, INC., a Texas
corporation (the "Company"), hereby promises to pay to AMERICAN CAPITAL
STRATEGIES, LTD., a Delaware corporation, or its registered assigns (the
"Holder"), the principal sum of TEN MILLION DOLLARS ($10,000,000), or such
lesser amount as may be outstanding hereunder from time to time, with interest
thereon on the terms and conditions set forth in the hereinafter defined
Purchase Agreement, and the payment of the principal and premium, if any, and
interest on this Note are secured pursuant to the terms of the Security
Documents (as defined in the Purchase Agreement).

         Notwithstanding any provision to the contrary in this Note, the
Purchase Agreement, or any other agreement, the Company shall not be required to
pay, and the Holder shall not be permitted to contract for, take, reserve,
charge or receive, any compensation, which constitutes interest under applicable
law in excess of the maximum amount of interest permitted by law.

         This Note is one of a series of Series B Notes issued March 31, 2003,
pursuant to the Note Purchase Agreement, dated as of March 31, 2003 (as amended,
restated or otherwise modified from time to time, the "Purchase Agreement"), by
and among the Company, Holder, the other Purchasers signatory thereto and
American Capital Financial Services, Inc., as Agent for Holder and the other
Purchasers, and Holder is entitled to the benefits thereof. All capitalized
terms used but not defined herein shall have the meanings respectively ascribed
to them in the

<PAGE>

Purchase Agreement. Each Holder of this Note will be deemed, by its acceptance
hereof, to have agreed to the provisions and to have made the representations
and warranties set forth in Article 6 of the Purchase Agreement.

         This Note is transferable only by surrender hereof at the principal
office of the Company in Irving, Texas, duly endorsed or accompanied by a
written instrument of transfer duly executed by the registered Holder of this
Note as shown in the register of the Company or as otherwise provided in the
Purchase Agreement.

         This Note is also subject to mandatory and optional prepayment, in
whole or from time to time in part, at the times and on the terms specified in
the Purchase Agreement, but not otherwise.

         If an Event of Default (as such term is defined in the Purchase
Agreement) occurs and is continuing, the unpaid principal of this Note may be
declared or otherwise become due and payable in the manner, at the price
(including any applicable premium) and with the effect provided in the Purchase
Agreement.

         Payments of principal, interest on and any premium with respect to this
Note are secured by the liens granted pursuant to the terms of the Security
Documents.

         This Note and the rights and obligations of the parties hereto shall be
deemed to be contracts under the laws of the State of Maryland and for all
purposes shall be governed by and construed and enforced in accordance with the
laws of said state, except for its rules relating to the conflict of laws.

         IN WITNESS WHEREOF, this Note is executed and delivered as of the date
first set forth above.

                               ACE CASH EXPRESS, INC.

                               By:______________________________________
                               Name:____________________________________
                               Title:___________________________________

<PAGE>

EXHIBIT A-3

THIS INSTRUMENT IS SUBORDINATE (INCLUDING WITH RESPECT TO LIEN AND PAYMENT
PRIORITY) IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN
INTERCREDITOR AGREEMENT, DATED AS OF THE DATE HEREOF, BY AND AMONG THE COMPANY,
AGENT AND CERTAIN OTHER CREDITORS OF THE COMPANY (AS AMENDED, MODIFIED OR
RESTATED FROM TIME TO TIME, THE "INTERCREDITOR AGREEMENT") TO THE INDEBTEDNESS
AND OTHER LIABILITIES OWED BY THE COMPANY UNDER AND PURSUANT TO THAT CERTAIN
CREDIT AGREEMENT, DATED AS OF THE DATE HEREOF, BY AND AMONG THE COMPANY, THE
LENDERS FROM TIME TO TIME PARTY THERETO, WELLS FARGO BANK TEXAS, NATIONAL
ASSOCIATION, AS ADMINISTRATIVE AGENT FOR SUCH LENDERS, AND JPMORGAN CHASE BANK,
AS AGENT FOR SUCH LENDERS, AS THE SAME MAY BE AMENDED OR MODIFIED FROM TIME TO
TIME AND EACH RELATED "CREDIT DOCUMENTS" (AS SUCH TERM IS DEFINED THEREIN), AND
EACH HOLDER HEREOF, BY ITS ACCEPTANCE HEREOF, ACKNOWLEDGES AND AGREES TO BE
BOUND BY THE PROVISIONS OF THE INTERCREDITOR AGREEMENT.

                    SENIOR SUBORDINATED SECURED SERIES C NOTE
                             ACE CASH EXPRESS, INC.
                               DUE MARCH 31, 2009

$10,000,000                                                      March 31, 2003

         FOR VALUE RECEIVED, the undersigned, AcE CASH EXPRESS, INC., a Texas
corporation (the "Company"), hereby promises to pay to AMERICAN CAPITAL
STRATEGIES, LTD., a Delaware corporation, or its registered assigns (the
"Holder"), the principal sum of TEN MILLION DOLLARS ($10,000,000), or such
lesser amount as may be outstanding hereunder from time to time, with interest
thereon on the terms and conditions set forth in the hereinafter defined
Purchase Agreement, and the payment of the principal and premium, if any, and
interest on this Note are secured pursuant to the terms of the Security
Documents (as defined in the Purchase Agreement).

         Notwithstanding any provision to the contrary in this Note, the
Purchase Agreement, or any other agreement, the Company shall not be required to
pay, and the Holder shall not be permitted to contract for, take, reserve,
charge or receive, any compensation, which constitutes interest under applicable
law in excess of the maximum amount of interest permitted by law.

         This Note is one of a series of Series C Notes issued March 31, 2003,
pursuant to the Note Purchase Agreement, dated as of March 31, 2003 (as amended,
restated or otherwise modified from time to time, the "Purchase Agreement"), by
and among the Company, Holder, the other Purchasers signatory thereto and
American Capital Financial Services, Inc., as Agent for Holder and the other
Purchasers, and Holder is entitled to the benefits thereof. All capitalized
terms used but not defined herein shall have the meanings respectively ascribed
to them in the

<PAGE>

Purchase Agreement. Each Holder of this Note will be deemed, by its acceptance
hereof, to have agreed to the provisions and to have made the representations
and warranties set forth in Article 6 of the Purchase Agreement.

         This Note is transferable only by surrender hereof at the principal
office of the Company in Irving, Texas, duly endorsed or accompanied by a
written instrument of transfer duly executed by the registered Holder of this
Note as shown in the register of the Company or as otherwise provided in the
Purchase Agreement.

         This Note is also subject to mandatory and optional prepayment, in
whole or from time to time in part, at the times and on the terms specified in
the Purchase Agreement, but not otherwise.

         If an Event of Default (as such term is defined in the Purchase
Agreement) occurs and is continuing, the unpaid principal of this Note may be
declared or otherwise become due and payable in the manner, at the price
(including any applicable premium) and with the effect provided in the Purchase
Agreement.

         Payments of principal, interest on and any premium with respect to this
Note are secured by the liens granted pursuant to the terms of the Security
Documents.

         This Note and the rights and obligations of the parties hereto shall be
deemed to be contracts under the laws of the State of Maryland and for all
purposes shall be governed by and construed and enforced in accordance with the
laws of said state, except for its rules relating to the conflict of laws.

         IN WITNESS WHEREOF, this Note is executed and delivered as of the date
first set forth above.

                              ACE CASH EXPRESS, INC.

                              By:_____________________________________
                              Name:___________________________________
                              Title:__________________________________

<PAGE>

EXHIBIT A-4

THIS INSTRUMENT IS SUBORDINATE (INCLUDING WITH RESPECT TO LIEN AND PAYMENT
PRIORITY) IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN
INTERCREDITOR AGREEMENT, DATED AS OF THE DATE HEREOF, BY AND AMONG THE COMPANY,
AGENT AND CERTAIN OTHER CREDITORS OF THE COMPANY (AS AMENDED, MODIFIED OR
RESTATED FROM TIME TO TIME, THE "INTERCREDITOR AGREEMENT") TO THE INDEBTEDNESS
AND OTHER LIABILITIES OWED BY THE COMPANY UNDER AND PURSUANT TO THAT CERTAIN
CREDIT AGREEMENT, DATED AS OF THE DATE HEREOF, BY AND AMONG THE COMPANY, THE
LENDERS FROM TIME TO TIME PARTY THERETO, WELLS FARGO BANK TEXAS, NATIONAL
ASSOCIATION, AS ADMINISTRATIVE AGENT FOR SUCH LENDERS, AND JPMORGAN CHASE BANK,
AS AGENT FOR SUCH LENDERS, AS THE SAME MAY BE AMENDED OR MODIFIED FROM TIME TO
TIME AND EACH RELATED "CREDIT DOCUMENTS" (AS SUCH TERM IS DEFINED THEREIN), AND
EACH HOLDER HEREOF, BY ITS ACCEPTANCE HEREOF, ACKNOWLEDGES AND AGREES TO BE
BOUND BY THE PROVISIONS OF THE INTERCREDITOR AGREEMENT.

                    SENIOR SUBORDINATED SECURED SERIES D NOTE
                             ACE Cash Express, Inc.
                               Due March 31, 2010

$10,000,000                                                      March 31, 2003

         FOR VALUE RECEIVED, the undersigned, ACE CASH EXPRESS, INC., a Texas
corporation (the "Company"), hereby promises to pay to AMERICAN CAPITAL
STRATEGIES, LTD., a Delaware corporation, or its registered assigns (the
"Holder"), the principal sum of TEN MILLION DOLLARS ($10,000,000), or such
lesser amount as may be outstanding hereunder from time to time, with interest
thereon on the terms and conditions set forth in the hereinafter defined
Purchase Agreement, and the payment of the principal and premium, if any, and
interest on this Note are secured pursuant to the terms of the Security
Documents (as defined in the Purchase Agreement).

         Notwithstanding any provision to the contrary in this Note, the
Purchase Agreement, or any other agreement, the Company shall not be required to
pay, and the Holder shall not be permitted to contract for, take, reserve,
charge or receive, any compensation, which constitutes interest under applicable
law in excess of the maximum amount of interest permitted by law.

         This Note is one of a series of Series A Notes issued March 31, 2003,
pursuant to the Note Purchase Agreement, dated as of March 31, 2003 (as amended,
restated or otherwise modified from time to time, the "Purchase Agreement"), by
and among the Company, Holder, the other Purchasers signatory thereto and
American Capital Financial Services, Inc., as Agent for Holder and the other
Purchasers, and Holder is entitled to the benefits thereof. All capitalized
terms used but not defined herein shall have the meanings respectively ascribed
to them in the

<PAGE>

Purchase Agreement. Each Holder of this Note will be deemed, by its acceptance
hereof, to have agreed to the provisions and to have made the representations
and warranties set forth in Article 6 of the Purchase Agreement.

         This Note is transferable only by surrender hereof at the principal
office of the Company in Irving, Texas, duly endorsed or accompanied by a
written instrument of transfer duly executed by the registered Holder of this
Note as shown in the register of the Company or as otherwise provided in the
Purchase Agreement.

         This Note is also subject to mandatory and optional prepayment, in
whole or from time to time in part, at the times and on the terms specified in
the Purchase Agreement, but not otherwise.

         If an Event of Default (as such term is defined in the Purchase
Agreement) occurs and is continuing, the unpaid principal of this Note may be
declared or otherwise become due and payable in the manner, at the price
(including any applicable premium) and with the effect provided in the Purchase
Agreement.

         Payments of principal, interest on and any premium with respect to this
Note are secured by the liens granted pursuant to the terms of the Security
Documents.

         This Note and the rights and obligations of the parties hereto shall be
deemed to be contracts under the laws of the State of Maryland and for all
purposes shall be governed by and construed and enforced in accordance with the
laws of said state, except for its rules relating to the conflict of laws.

         IN WITNESS WHEREOF, this Note is executed and delivered as of the date
first set forth above.

                                ACE CASH EXPRESS, INC.

                                By:__________________________________
                                Name:________________________________
                                Title:_______________________________

<PAGE>

EXHIBIT B - ACE

THIS ASSIGNMENT OF DEPOSIT ACCOUNTS AND SECURITY AGREEMENT IS SUBORDINATE
(INCLUDING WITH RESPECT TO LIEN PRIORITY) IN THE MANNER AND TO THE EXTENT SET
FORTH IN THAT CERTAIN INTERCREDITOR AGREEMENT, DATED AS OF THE DATE HEREOF, BY
AND AMONG THE DEBTOR, AGENT AND CERTAIN OTHER CREDITORS OF THE DEBTOR (AS
AMENDED, MODIFIED OR RESTATED FROM TIME TO TIME, THE "INTERCREDITOR AGREEMENT")
TO THE INDEBTEDNESS AND OTHER LIABILITIES OWED BY THE DEBTOR UNDER AND PURSUANT
TO THAT CERTAIN Credit Agreement, dated as of the date hereof, by and among the
DEBTOR, the lenders from time to time party thereto, wells fargo bank texas,
national association, as administrative agent for such lenders ("BANK AGENT"),
and JPMorgan Chase Bank, as agent for such lenders, as the same may be amended
or modified from time to time AND EACH RELATED "CREDIT DOCUMENT" (AS SUCH TERM
IS DEFINED THEREIN).

              ASSIGNMENT OF DEPOSIT ACCOUNTS AND SECURITY AGREEMENT

         This ASSIGNMENT OF DEPOSIT ACCOUNTS AND SECURITY AGREEMENT (this
"Security Agreement") dated as of March 31, 2003, is made by ACE CASH EXPRESS,
INC., a Texas corporation (the "Debtor"), in favor of AMERICAN CAPITAL FINANCIAL
SERVICES, INC., a Delaware corporation ("ACFS"), as administrative agent (ACFS
in such capacity, "Agent") for the purchasers (the "Purchasers") from time to
time a party to the Note Agreement (as such term is defined below).

                              W I T N E S S E T H:

         WHEREAS, the Debtor, Agent, and Purchasers have entered into that
certain Note Purchase Agreement of even date herewith (as amended, supplemented,
restated, or otherwise modified from time to time, the "Note Agreement"); and

         WHEREAS, it is a condition precedent to the extension of credit under
the Note Agreement and to Purchasers' obligations under the Note Agreement, that
the Debtor, Agent and certain other creditors of the Pledgor enter into that
certain Intercreditor Agreement of even date herewith (as amended, modified or
restated from time to time, the "Intercreditor Agreement"), pursuant to which,
among other things, Agent and the other parties thereto shall establish their
relative rights and respective lien priorities in and to the Collateral.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, in order to induce the Purchasers under the Note
Agreement to extend credit thereunder, Debtor, intending to be legally bound,
hereby agrees as follows:

         1.       DEFINITIONS. As used herein, all terms describing items or
types of collateral defined in the Uniform Commercial Code in effect in the
State of Texas shall have the meanings

<PAGE>

given therein unless otherwise defined herein, capitalized terms used herein
that are not otherwise defined in this Security Agreement shall have the
meanings ascribed to them in the Note Agreement, and the following terms shall
have the meanings given in this Section 1.

         1.1.     The term "Center" shall mean a location where the Debtor
conducts check cashing and related business. All of the Debtor's Centers are
identified on Schedule 2 hereto, and the term Center shall include, without
limitation, each and every location where the Debtor conducts check cashing and
related business irrespective of whether such location is listed on Schedule 2
hereto or is timely disclosed on a Certificate of Update.

         1.2.     The term "Collateral" shall mean and include:

                  a.       All of the Deposit Accounts;

                  b.       All of the Cash Holdings (to the extent Cash Holdings
are not otherwise included in the definitions of Deposit Accounts or Inventory);

                  c.       All of the Receivables;

                  d.       All of the Inventory;

                  e.       All of the Equipment;

                  f.       All documents and instruments (whether negotiable or
nonnegotiable), chattel paper, checks (of any nature), money orders (in blank
form or completed), drafts, notes, investments, securities (including the stock
of any Subsidiaries of Debtor, other than ACE Funding), acceptances,
certificates of deposit, trust receipts, and any other writings evidencing a
right to the payment of money, and all cash and currency, whether now or
hereafter owned by the Debtor, whether or not in the possession of the Debtor
(collectively, the "Instruments");

                  g.       All certificates of title, documents of title,
certificates and policies of insurance, and fidelity bonds, whether now or
hereafter owned by the Debtor, and whether or not in the possession of the
Debtor;

                  h.       All patents, trademarks, trade names, service marks,
registration marks, logos and the like, whether now or hereafter owned by the
Debtor;

                  i.       (i) All of the Debtor's rights as a consignee or an
unpaid vendor, whether now owned or hereafter acquired; (ii) all additional
amounts, whether now owned or hereafter acquired, due to the Debtor from any
Person, irrespective of whether such additional amounts have been specifically
assigned to Agent; and (iii) all of the Debtor's right, title and interest in
other property, including warranty claims, relating to any goods whatsoever
securing the Obligations;

                  j.       All of the Debtor's ledger sheets, files, records,
books of account, business papers and documents (including, but not limited to,
computer programs, source codes, object

                                        2

<PAGE>

codes, tapes and related electronic data processing software and system
documentation and manuals), whether now owned or hereafter acquired;

                  k.       All of the Debtor's rights under the agreements and
contracts with Custodial Agents set forth in Schedule 5.1(v) to the Note
Agreement and such other agreements or contracts whether now or hereafter
entered into by the Debtor for the collection, safekeeping and/or deposit of
checks, drafts and other instruments or Collateral, together with all renewals,
extensions, amendments and modifications thereof (all such contracts and
agreements and rights of the Debtor thereunder are herein collectively called
the "Custodial Agreement Rights");

                  l.       All of the Debtor's other tangible and intangible
assets, including, but not limited to, any and all general intangibles, payment
intangibles, and contract rights, all liens or charges arising under the laws of
any state securing any portion of the Debtor's obligations in respect of any of
the Obligations and any guaranties by any Person related to the Obligations,
whether or not specifically enumerated above and whether now owned or hereafter
acquired; and

                  m.       All accessions or accretions to, substitutes for and
proceeds and products of the assets of the Debtor described in the above
subsections a. through l., in whatever form, and all insurance proceeds and
proceeds of tort claims paid or payable in connection with the loss or damage of
any of the assets of the Debtor described in the above subsections a. through
l.; excluding, however, from the above subsections a. through l., all hazardous
and nonhazardous wastes, including, but not limited to, recyclable waste
materials.

         Notwithstanding the foregoing or any other provision of the Security
Documents, Agent acknowledges and agrees that the Collateral shall not include
(i) any of the food stamp coupons or any other items held in trust by the Debtor
or any of the rights of the Debtor under that certain Food Stamp Issuing Agent
Contract with the Texas Department of Human Services or under similar contracts
with similar governmental entities in Texas or in other states, or (ii) any of
the lottery tickets or similar lottery items, together with any Deposit Accounts
established for purposes of complying with any applicable jurisdiction's lottery
statutes or governing regulations or any applicable lottery contracts, any and
all rights of the Debtor under lottery contracts and applications with lottery
authorities, and all cash and currency held in trust by the Debtor and due to
any of the various state lottery authorities, or (iii) any demand accounts
(whether interest-bearing or not, and if interest-bearing, then all interest
accrued and paid or payable thereon, whether now or hereafter established and
maintained from time to time by Debtor, and all moneys from time to time in or
credited to any and all such deposit accounts, including all earnings or profits
therefrom, in the form of interest or otherwise) held by the Debtor as agent for
third parties containing funds owned by such third parties to be used for the
payment of utility bills, payday loans, or similar customer services to the
extent (in the case of each of clause (i), (ii) and (iii)) a grant of any
security interest therein would be void or otherwise impermissible in respect of
such contract or property. In addition, notwithstanding the foregoing or any
other provision of the Security Documents, Agent acknowledges and agrees that
the Collateral shall not include (i) any Equipment that is owned by Travelers
and that is provided by Travelers to the Debtor for use in the Debtor's
business, or (ii) any money order stock (in blank form) that is owned by
Travelers and that is provided by Travelers to the Debtor for use in the
Debtor's

                                       3

<PAGE>

business. Nothing contained in this Section 1.2 or elsewhere in this Security
Agreement shall be deemed or interpreted to limit or otherwise diminish the
exception provided for in Section 7.2(f) of the Note Agreement related to the
sale of assets.

         1.3.     The term "Custodial Agent" shall mean an armored car service
organization utilized by the Debtor to transport Collateral from Centers to
Depositories at which Deposit Accounts are maintained. All of the Debtor's
Custodial Agents, and all of the Debtor's agreements with its Custodial Agents,
are identified on Schedule 5.1(v) to the Note Agreement, and the term Custodial
Agent shall include, without limitation, each and every armored car service
organization utilized by the Debtor irrespective of whether it is listed on
Schedule 5.1(v) to the Note Agreement or is timely disclosed on a Certificate of
Update.

         1.4.     The term "Custodial Agreement Rights" shall have the meaning
set forth in Section 1.2.k of this Security Agreement.

         1.5.     The term "Debtor" shall mean Ace Cash Express, Inc., a Texas
corporation, together with its successors and assigns. The Debtor also transacts
business under the trade name(s) identified on Schedule 1 hereto.

         1.6.     The term "Deposit Accounts" shall mean all demand, time,
savings, passbook and other like accounts (including any account evidenced by a
certificate of deposit), whether interest-bearing or not, and if
interest-bearing then all interest accrued and paid or payable thereon, whether
now or hereafter established and maintained from time to time by the Debtor, and
all moneys from time to time in or credited to any and all such deposit
accounts, including all earnings or profits therefrom in the form of interest or
otherwise. All of the Debtor's Deposit Accounts are identified on Schedule
5.1(v) to the Note Agreement, and the term Deposit Account shall include,
without limitation each and every account established and maintained by the
Debtor at a Depository irrespective of whether such account is listed on
Schedule 5.1(v) to the Note Agreement or is timely disclosed on a Certificate of
Update.

         1.7.     The term "Depository" shall mean each financial institution at
which a Deposit Account is maintained.

         1.8.     The term "Equipment" shall mean and include all of the
Debtor's equipment, whether now owned or hereafter acquired, and includes all
goods for use in the Debtor's business (including, without limitation, all
vehicles, motor vehicles, mobile goods, machinery, furniture and trade fixtures)
with all parts, equipment and attachments relating thereto. The Equipment is
located at the locations of Collateral identified on Schedule 2 hereto.

         1.9.     The term "Instruments" shall have the meaning set forth in
Section 1.2.f of this Security Agreement.

         1.10.    The term "Inventory" shall mean and include all of the
Debtor's inventory, whether now owned or hereafter acquired, including, without
limitation, all Instruments, cash and currency maintained by the Debtor for sale
at its operating locations. The Inventory is located at the locations of
Collateral identified on Schedule 2 hereto.

                                       4

<PAGE>

         1.11.    As used herein, the term "Obligations" means:

         (a)      all indebtedness, obligations and liabilities, including all
costs, expenses and fees, now or hereafter owing by Borrower to Agent or
Purchasers under the Note Agreement, the Notes or any other Purchase Document;

         (b)      any and all renewals, extensions, modifications and increases
of such Obligations; and

         (c)      all costs, expenses and fees, including but not limited to all
court costs and reasonable attorneys' fees, arising in connection with the
collection of any or all amounts, indebtedness, obligations and liabilities
described in items (a) through (b) above, including all costs, expenses and fees
arising in connection with the enforcement of this Security Agreement.

         1.12     The term "Obligor" shall mean any Person, other than the
Debtor, obligated on or with respect to any Receivable, Instrument, document,
chattel paper or general intangible, however such obligation may arise or be
evidenced, whether such liability is direct or indirect, contingent or mature,
primary or secondary.

         1.13.    The term "Purchasers" shall have the meaning given to such
term in the preamble of this Security Agreement.

         1.14.    The term "Receivables" shall mean and include the following,
whether now existing or hereafter arising: all of the Debtor's accounts and
rights to payment for goods sold or leased or for services rendered, all sums of
money due or becoming due with respect thereto, documents, instruments or
agreements pertaining thereto, all guaranties and security therefor, and
including all goods giving rise thereto and the rights pertaining to such goods
(e.g., the right of stoppage in transit), and all related insurance and proceeds
payable with respect to claims thereunder.

         2.       GRANT OF SECURITY INTEREST. To secure the full and prompt
payment, observance and performance of all of the Obligations, the Debtor hereby
grants to Agent for the benefit of Agent and each Purchaser a continuing
security interest in all of the Collateral, wherever located, whether in the
Debtor's possession or in the possession and control of a third party for the
Debtor's account. The Debtor agrees that all the Debtor's ledger sheets, files,
records, books of account, business papers and documents shall, until delivered
to or removed by Agent, be kept by the Debtor in trust for Agent and without
cost to Agent in appropriate containers in safe places. Each confirmatory
assignment schedule or other form of assignment hereafter executed by the Debtor
shall be deemed to include the foregoing security interest grant, whether or not
the same appears therein.

         3.       CUSTODY, INSPECTION, COLLECTION AND MAINTENANCE OF THE
COLLATERAL AND RECORDS.

                                       5

<PAGE>

         3.1.     The Debtor will safeguard and protect all of the Collateral
and make no disposition thereof, except for the disposition of Inventory in the
ordinary and usual course of the Debtor's business or as otherwise permitted
under the Note Agreement.

         3.2.     The Debtor shall maintain books and records pertaining to the
Collateral in such detail, form and scope as it currently does, or as Agent
hereafter shall reasonably require. At all reasonable times in accordance with
the Note Agreement, Agent shall have full access to, and the right to audit,
check, inspect and make abstracts and copies from, the Debtor's books, records,
audits, correspondence and all other papers relating to the Collateral. In
accordance with the Note Agreement, Agent and its agents, may enter upon any of
the Debtor's premises at any time during business hours and at any other
reasonable time, and from time to time, for the purpose of inspecting the
Collateral and any and all records pertaining thereto, provided that prior to a
Default or an Event of Default, the Debtor's expense for any of the items
referenced in this sentence and the preceding sentence shall be limited to
$5,000 during any Fiscal Year. Agent acknowledges that the Debtor's security
procedures may preclude unannounced inspections of some aspects of the Debtor's
business, and the Debtor agrees to cooperate fully with Agent in the exercise of
its rights hereunder. At any time a Event of Default exists, the Debtor shall
pay when billed the reasonable costs and expenses (including attorneys' fees)
incurred by Agent in connection with any inspections in accordance with this
Section 3.2. Nothing in this Section 3.2 shall in any way diminish the Debtor's
obligations under Sections 7.1(h), 10.4 or 10.13 of the Note Agreement.

         3.3.     The Debtor hereby irrevocably authorizes and directs all
accountants and auditors employed by the Debtor or Agent at any time during the
term of this Security Agreement during reasonable business hours (unless an
Event of Default has occurred and is continuing, then at any time) to exhibit
and deliver to Agent copies of any of the Debtor's financial statements, trial
balances or other accounting records of any sort in the accountant's or
auditor's possession, and to disclose to Agent any information they may have
concerning the Debtor's financial status and business operations, provided that
Agent notify the Debtor of such exhibition or delivery to the Agent of such
financial statements, trial balances or other accounting records or information
concerning the Debtor's financial status and operations. The Debtor hereby
authorizes all federal, state and municipal authorities to furnish to Agent
copies of reports or examinations relating to the Debtor, whether made by the
Debtor or otherwise; provided that Agent notify the Debtor of Agent's receipt of
such reports and examinations. At any time a Event of Default exists, the Debtor
shall pay when billed the reasonable costs and expenses (including attorneys'
fees) incurred by Agent in connection with this Section 3.3. Nothing in this
Section 3.3 shall in any way diminish the Debtor's obligations under Sections
7.1(h), 10.4 or 10.13 of the Note Agreement.

         3.4.     The Debtor will, immediately upon learning thereof, report to
Agent all matters materially affecting the loss, value, enforceability or
collectability of any material portion of the Collateral.

         3.5.     Except as otherwise expressly provided herein, nothing herein
contained shall be construed to constitute the Debtor as Agent's agent for any
purpose whatsoever, and Agent shall

                                       6

<PAGE>

not be responsible or liable for any shortage, discrepancy, damage, loss or
destruction of any part of the Collateral wherever the same may be located and
regardless of the cause thereof, unless the same results from Agent's gross
negligence or willful misconduct. Agent does not, by any provision contained
herein or in any assignment or otherwise, assume any of the Debtor's obligations
under any contract or agreement assigned to Agent, and Agent shall not be
responsible in any way for the performance by the Debtor of any of the terms and
conditions thereof except as Agent hereafter shall assume such responsibility
expressly in writing.

         3.6.     The Debtor has paid and shall continue to pay, when due, all
taxes, assessments and other charges levied or assessed upon any of the
Collateral; provided, however, the Debtor shall not be required to pay any such
taxes, assessments or other charges if any such nonpayment will not have a
Material Adverse Effect, or if (a) the amount, applicability or validity thereof
is currently being contested in good faith by appropriate action promptly
initiated and diligently conducted, (b) the Debtor shall have set aside on its
books reserves (segregated to the extent required by GAAP) reasonably determined
by the Debtor to be adequate with respect thereto, and (c) the Debtor has
notified Agent of such circumstances in detail reasonably satisfactory to the
Required Purchasers.

         3.7.     The Debtor presently complies with, and shall continue to
comply with, all acts, rules, regulations and orders of any legislative,
administrative or judicial body or official applicable to the Collateral or any
part thereof or to the operation of the Debtor's business, noncompliance with
which would have a Material Adverse Effect. The Debtor may, however, contest or
dispute any acts, rules, regulations, orders and directions of those bodies or
officials in any reasonable manner; provided that Required Purchasers are
satisfied that the contest or dispute will not have a Material Adverse Effect.

         3.8.     Agent may at any time take such steps as Agent deems necessary
to protect Agent's security interest in and to preserve the Collateral,
including, but not limited to, the hiring of such security guards or the placing
of other security protection measures as Agent may deem appropriate. Agent may,
upon the occurrence and continuance of an Event of Default, employ and maintain
at any of the Debtor's premises a custodian who shall have full authority to do
all acts necessary to protect Agent's security interest in the Collateral. The
Debtor agrees to cooperate fully with all of Agent's efforts to preserve the
Collateral and will take such actions to preserve the Collateral as Agent may
direct, in each case subject to the Intercreditor Agreement. All of Agent
reasonable expenses of preserving the Collateral, including any expenses
relating to the compensation and bonding of a custodian, shall be charged to the
Debtor's account and shall be deemed a part of the Obligations secured
hereunder.

         3.9.     All costs and expenses, including, without limitation,
reasonable attorneys' fees, incurred by Agent in all efforts made to enforce
payment of the Obligations or otherwise affect collection of any of the
Collateral, as well as all costs and expenses, including attorneys' fees and
legal expenses, incurred in connection with the entering into a proposed or
actual modification to this Security Agreement or the enforcement of this
Security Agreement and/or instituting, maintaining, preserving, protecting,
enforcing or foreclosing Agent's security interest in any of the collateral,
whether through judicial proceedings or otherwise, or in defending or
prosecuting

                                       7

<PAGE>

any actions or proceedings arising out of or relating to Agent's transactions
with the Debtor, shall be charged to the Debtor's account and shall be deemed a
part of the Obligations secured hereunder.

         3.10.    The Debtor shall bear the full risk of loss with respect to
the Instruments, Inventory or Equipment in which Agent has a security interest,
except for any loss caused by Agent's gross negligence or willful misconduct. At
the Debtor's own cost and expense, the Debtor shall keep all of the Instruments,
Inventory and Equipment insured, with reputable insurance companies in amounts
reasonably acceptable to Agent, against the hazards of fire, flood, sprinkler
leakage, hazards covered by extended coverage insurance and such other hazards
as may be required by the Debtor pursuant to the Note Agreement; provided that
such insurance coverage shall be consistent with industry practices. The Debtor
shall cause to be delivered to Agent, upon request, the insurance policies or
binders therefor and, at least fifteen (15) days prior to the expiration of any
such insurance, additional policies or duplicates thereof, or binders,
evidencing the renewal or replacement of such insurance and the payment of the
premiums therefor. Such policies shall provide, in a manner reasonably
satisfactory to Agent, that any losses thereunder shall be payable first to
Agent as Agent's interest may appear. Each insurance policy to be provided under
this Section 3.10 shall contain an agreement by the insurer that it will not
cancel such policy except upon at least thirty (30) calendar days' prior written
notice to Agent, and that any loss otherwise payable thereunder shall be payable
notwithstanding any act or negligence of the Debtor which might, absent such
agreement, result in a forfeiture of all or part of such insurance payment. In
the event of any loss thereunder, the insurers are directed by the Debtor to
make payment for such loss to Agent as its interest may appear if (a) the loss
involves claims which exceed in the aggregate Twenty Five Thousand and 00/100
Dollars ($25,000.00) or (b) an Event of Default has occurred and is continuing,
otherwise the payment for such losses shall be made directly to the Debtor. If
any insurance losses are paid by check, draft or other instrument payable to the
Debtor and Agent jointly, Agent may endorse the Debtor's name thereon and do
such other things as Agent may deem advisable to reduce the same to cash. All
loss recoveries received by Agent upon any such insurance and not remitted to
the Debtor shall be applied to the Obligations in the order provided in the Note
Agreement. The Debtor shall not take out separate insurance concurrent in form
or contributing in the event of loss with that required in this Section 3.10,
unless Agent is included therein as a named insured, with loss payable as
required in this Section 3.10. The Debtor shall immediately notify Agent
whenever any such separate insurance is applied for and shall promptly deliver
to Agent the policy or policies or binders evidencing the same.

         3.11.    Until the Debtor's authority to do so is terminated following
the occurrence and continuance of an Event of Default, the Debtor will, at the
Debtor's sole cost and expense, but on Agent's behalf and for Agent's account,
collect in trust for Agent all Instruments, cash and currency included in the
Collateral and received or receivable in the ordinary course of its business
(including all amounts unpaid on the Debtor's Receivables), and shall not
commingle such collections with the Debtor's other funds or use the same except
as permitted by the Note Agreement. In the event of any commingling, such
collected amounts shall be deemed impressed with a trust for the benefit of
Agent.

                                       8

<PAGE>

         3.12.    At any time following the occurrence and continuance of an
Event of Default, without notice to the Debtor, Agent shall have the right to
send notice of the assignment of and Agent's security interest in Receivables to
any Obligor of the Debtor or any third party holding or otherwise concerned with
any of the Collateral. Thereafter, following the occurrence and continuance of
an Event of Default, Agent shall have the sole right, to collect Receivables and
take possession of the Collateral. Any of Agent's actual, but reasonable,
accrued collection expenses under such circumstances, including, but not limited
to, stationery and postage, telephone and telegraph, secretarial and clerical
expenses and the salaries of any collection personnel used for collection, shall
be charged to the Debtor's account and be deemed a part of the Obligations
secured hereby.

         3.13.    Upon Agent's request and upon the creation of any Receivables,
or at such intervals as Agent may require, the Debtor shall provide Agent with
such schedules, documents and/or information regarding the Receivables as Agent
reasonably may require. Agent shall have the right to confirm and verify all
Receivables and do whatever Agent reasonably may deem necessary to protect
Agent's security interest. The items to be provided under this Section 3.13 are
to be in form reasonably satisfactory to Agent and executed by the Debtor and
delivered to Agent from time to time solely for Agent's convenience in
maintaining records of the Collateral, and the Debtor's failure to deliver any
of such items to Agent shall not affect, terminate, modify or otherwise limit
Agent's security interest in any of the Collateral.

         3.14.    The Debtor shall not, without Agent's consent, compromise or
adjust any of the Receivables (or extend the time for payment thereof) or grant
any additional discounts, allowances or credits thereon other than, in each
case, in the ordinary and usual course of the Debtor's business.

         3.15.    If any of the Receivables includes a charge for any tax
payable to any governmental taxing authority, Agent is hereby authorized in its
discretion to pay the amount thereof to the proper taxing authority for the
Debtor's account and to charge the Debtor's account therefor, such amount shall
be deemed a part of the Obligations. The Debtor shall notify Agent if any of the
Receivables includes any tax due to any such taxing authority, and in the
absence of the Debtor's notice or Agent's actual knowledge of the inclusion of
any tax due, Agent shall have the right to retain the full proceeds of such
Receivables and shall not be liable for any taxes that may be due from the
Debtor by reason of the sale and delivery creating such Receivables.

         3.16.    Agent shall have the irrevocable right, upon the occurrence
and continuance of an Event of Default, to receive, endorse, assign and/or
deliver in the name of Agent or the Debtor any check, draft or other Instrument,
and the Debtor hereby waives notice of presentment, protest and nonpayment of
any Instrument so endorsed. The Debtor hereby irrevocably appoints Agent or
Agent's designee as the Debtor's attorney-in-fact with power to endorse the
Debtor's name upon any Instruments or other evidences of payment or Collateral
that may come into Agent's possession; to sign the Debtor's name on any invoice
relating to any of the Receivables, drafts against Obligors, assignments and
verifications of Receivables and notices to Obligors; to send verifications of
Receivables to any Obligor; to notify the postal authorities to change the
address for delivery of mail addressed to the Debtor to such address as Agent
may designate; to sign the

                                       9

<PAGE>

Debtor's name on all financing statements or any other documents or instruments
deemed necessary or appropriate by Agent to preserve, protect or perfect Agent's
interest in the Collateral and to file the same; and to do all other acts and
things necessary to carry out the full intent of this Security Agreement. All
acts of said attorney or designee are hereby ratified and approved, and said
attorney or designee shall not be liable for any acts of omission or commission,
nor for any error of judgment or mistake of fact or law, unless resulting from
gross negligence or willful misconduct; this power being coupled with an
interest is irrevocable while any of the Obligations remains unpaid.
Notwithstanding the generality of the foregoing provisions, Agent acknowledges
that its exercise of such powers and authority shall be solely in a manner
consistent with, and for the purpose of, enforcement, maintenance and protection
of its rights under this Security Agreement.

         3.17.    Agent shall not, under any circumstances or in any event
whatsoever, have any liability for any error or omission or delay of any kind
occurring in the settlement, collection or payment of any of the Receivables or
any Instrument, or for any damage resulting therefrom unless resulting from its
gross negligence or willful misconduct. When entitled to exercise its rights,
and powers hereunder, Agent may, without consent from the Debtor, sue upon or
otherwise collect, extend the time of payment of, or compromise or settle for
cash, credit or otherwise upon any terms, any of the Receivables or any
securities, instruments or insurance applicable thereto and/or release the
Obligor thereon; provided that Agent shall provide the Debtor written notice of
any actions taken by Agent pursuant to this Section 3; provided further,
however, that Agent's failure to provide the Debtor with such written notice
shall not affect the validity of Agent's actions taken hereunder.

         3.18.    The Debtor shall keep and maintain the Equipment in good order
and repair, ordinary wear and tear excepted, and shall not sell or otherwise
dispose of the Equipment except as permitted under the Note Agreement.

         3.19.    The Equipment shall be and shall remain personal property, and
nothing shall affect the character of the Equipment or cause the Equipment to
become part of realty, or prevent Agent from removing it from the premises on
which it is located or to which it may be attached following the occurrence and
continuance of an Event of Default.

         4.       REPRESENTATIONS, COVENANTS AND WARRANTIES. The Debtor hereby
makes the following representations, covenants and warranties, which shall be
deemed to be incorporated by reference, as true and correct in all material
respects, in any request for an advance in connection with any indebtedness of
the Debtor to the Purchasers for borrowed money, and each of the following
representations, covenants and warranties shall be deemed repeated and
confirmed, in all material respects, with respect to each item of the Collateral
as it is created or otherwise acquired by the Debtor:

         4.1.     The information set forth herein with respect to the
definitions of "Custodial Agent," "Debtor," "Deposit Accounts," "Inventory" and
"Equipment," as defined in Section 1 of this Security Agreement, and the
agreements with Custodial Agents listed in Schedule 5.1(v) to

<PAGE>

the Note  Agreement is complete and accurate in all material  respects as of the
date of this Security Agreement.

         4.2.     The execution, delivery and performance hereof and of any
other document executed and delivered by the Debtor in connection with the
Obligations are within the Debtor's corporate powers, have been duly authorized
by the Debtor, and comply in all material respects with any applicable law, rule
or regulation and the terms of the Debtor's current Restated Articles of
Incorporation, Bylaws or other applicable documents, instruments or agreements
relating to the Debtor's corporate organization or governance or material to the
conduct of the Debtor's business, or of any indenture or other material
agreement or undertaking to which the Debtor is a party or by which the Debtor
is bound, except as permitted under the Note Agreement.

         4.3.     There is no litigation or proceeding pending or, to the best
knowledge of the Debtor, threatened against the Debtor or any of its assets
which, if determined adversely to the Debtor, reasonably may be expected to
result in a Material Adverse Effect.

         4.4      At the time the Collateral becomes subject to Agent's security
interest: (a) the Debtor shall be the sole owner of and fully authorized to
sell, transfer, pledge and/or grant a first security interest in each and every
item of the Collateral, which interests shall be prior to any other already
existing secured interests in favor of any other creditor; (b) all documents,
instruments and agreements shall be true and correct and in all respects what
they purport to be; (c) all signatures and endorsements that appear thereon
shall be genuine and all signatories and endorsers shall have full capacity to
contract; and (d) none of the transactions underlying or giving rise to the
Collateral shall violate in any material respect any applicable state or federal
laws or regulations, and all documents or instruments relating to the Collateral
shall be legally sufficient under such laws or regulations and shall be legally
enforceable in accordance with their terms (subject to exceptions for insolvency
laws and equitable principles). Notwithstanding anything to the contrary
contained in this Section 4.4, all of the capital stock of ePacific
Incorporated, a Delaware corporation ("ePacific") owned by the Debtor is subject
to a Stockholders' Agreement dated as of March 30, 2000 which provides, among
other things, that no stockholder of ePacific may effect certain sales of such
securities without affording the other stockholders of ePacific a right to
participate in each such sale and no party to such Stockholders' Agreement may
assign its rights thereunder without the prior written consent of the other
parties thereto.

         4.5.     The Debtor shall from time to time take such actions as Agent
may from time to time reasonably request in writing by way of obtaining,
executing, delivering and/or filing financing statements, landlord's or
mortgagee's waivers, and other notices and amendments and renewals thereof, and
the Debtor shall take any and all steps and observe such formalities as may be
necessary or as Agent may reasonably request, in order to create and maintain a
valid first lien upon, pledge of, or paramount security interest in the
Collateral, except with respect to any Permitted Lien. All charges, expenses and
fees which Agent may incur in filing any of the foregoing, and any local taxes
relating thereto, shall be charged to the Debtor's account and be deemed a part
of the Obligations secured hereby, or, at Agent's option, shall be paid to Agent
immediately upon demand. The Debtor hereby authorizes Agent to (a) file one or
more UCC-1

                                       11

<PAGE>

financing statements indicating the Collateral as "all assets of Debtor and
proceeds thereof" (or using substantially similar words) in such jurisdictions
as Agent shall deem necessary or appropriate and (b) file the original or a
photocopy of this Security Agreement as a financing statement.

         4.6.     Until termination and release of the security interests
granted pursuant to this Security Agreement, the security interest in the
Collateral hereby granted to Agent shall continue in full force and effect.
Until such time, the Debtor shall not, without Agent's prior written consent,
pledge, sell, assign, transfer, create a security interest in, or encumber or
allow to be encumbered in any way, any part of the Collateral to anyone other
than Agent except for the Permitted Liens. The Debtor hereby agrees to defend
Agent's interest in the Collateral against any and all persons whatsoever.

         4.7.     The Debtor shall execute and deliver, or cause to be executed
and delivered, to Agent, from time to time, upon Agent's reasonable request (in
writing), such supplemental agreements, statements, assignments, and transfers,
or instructions or documents relating to the Collateral, and such other
instruments as Agent so request, in order that the full intent of this Security
Agreement may be carried into effect.

         4.8.     All balance sheets, earnings statements and other financial
data which have been or may hereafter be furnished to Agent did and do and shall
fairly represent the Debtor's financial condition as of the dates thereof and/or
the results of the Debtor's operations for the period for which the same are
furnished and have been and shall be prepared in accordance with GAAP, except
that interim financial statements will not contain footnotes and will be subject
to year-end adjustments, and any material adverse change in such financial
condition or the Debtor's operations since the date of each such report shall be
disclosed at the time of delivery thereof. The Debtor shall continue to furnish
whatever information or reports concerning the Collateral and the Debtor's
financial condition that Agent may reasonably request during the term of this
Security Agreement. All other information, reports and other papers and data
furnished to Agent is and shall be, at the time the same are so furnished,
accurate and correct in all material respects and complete insofar as
completeness may be necessary to give Agent a true and accurate knowledge of the
subject matter; provided, however, that any information, reports and other
papers or data furnished by the Debtor to Agent as (a) budgets or forecasts
shall be only what the Debtor believes to be reasonable under the circumstances,
and (b) drafts of documents shall be subject to completion by any subsequent
drafts and the final version of such documents. Agent acknowledges that only the
annual financial statements of the Debtor will be audited.

         4.9.     To the best knowledge of the Debtor, (a) each of the
Receivables is and shall be a good and valid account representing the amount of
the undisputed bona fide indebtedness incurred by the customer therein named,
for a fixed sum as set forth in the invoice relating thereto with respect to an
absolute sale and delivery of goods by the Debtor, or work, labor and/or
services rendered by the Debtor, and (b) none of the Receivables is or shall be
subject to any defense, setoff, counterclaim, discount or allowance, except as
permitted by Section 3.14 or as disclosed in writing by the Debtor to Agent.

                                       12

<PAGE>

         4.10.    The Debtor shall give Agent written notice of each office at
which the Debtor keeps its records pertaining to accounts, contract rights,
payment intangibles, and general intangibles and the location of the Debtor's
chief executive office. Until and except as such notice is given, all such
records shall be kept at the Debtor's address as it appears in Section 10.6 of
the Note Agreement. The Debtor shall promptly (but in any event no later than
five (5) days after the Debtor first has knowledge of any event described in
clause (c) and (d) below in this Section 4.10) give Agent written notice of: (a)
any change in the location of such records, its chief executive office, or its
corporate name; (b) any additional trade name under which the Debtor transacts
business; (c) the filing of any liens or judgments against the assets of the
Debtor; and (d) any litigation or proceedings which if determined adversely to
the Debtor reasonably may be expected to have a Material Adverse Effect.

         4.11.    (a) Except as otherwise permitted under Section 7.2(d) of the
Note Agreement, the Debtor and Agent have delivered or will be delivering
letters of instruction to, and have obtained or will be obtaining agreements
from, the Depositories with respect to the Deposit Accounts. Such letters of
instruction shall be substantially similar to Exhibits F-1 or F-2, except for
changes approved by Agent; provided such changes approved by Agent do not (i)
prejudice the Lenders, or Travelers to a greater extent than Agent or (ii)
substantially adversely affect the security interests and liens granted to the
Bank Agent pursuant to the Credit Documents. To enable the Depositories'
continuing compliance with all such instructions or agreements, the Debtor
agrees that all cash, checks and other Instruments received in its operations
shall be deposited initially by or for the account of the Debtor only in those
Deposit Accounts designated as either a "Currency Account" (with respect to
cash) or a "Deposit Account" (with respect to checks and other Instruments) in
each such letter of instruction, except for cash retained at or delivered to the
premises at which the Debtor conducts its business or funds transfers between
Deposit Accounts, in either case as permitted by such instructions or
agreements.

                  (b)      No deposit, account, certificate of deposit, check,
note, draft or other Instrument has been or shall be received by the Debtor
unless the same is pledged and assigned to Agent, and each check, draft and all
other Instruments are or shall be (i) duly endorsed by the Debtor "for deposit
only" to a Deposit Account (or an equivalent endorsement), (ii) delivered to
Agent, a Custodial Agent or another designated agent, bailee or trustee for
Agent no later than the next Business Day following receipt by the Debtor and
(iii) deposited into a Deposit Account no later than the next Business Day
following the date the Debtor receives the same; provided that, for purposes of
subclauses (ii) and (iii) , the Debtor need not so deliver or deposit checks
made payable to the Debtor (including post-dated checks) until the aggregate
amount thereof received by the Debtor from time to time shall exceed Fifty
Thousand and 00/100 Dollars ($50,000.00).

                  (c)      Except for cash in Centers and cash in possession of
Custodial Agents, all cash received by the Debtor has been and shall, unless
otherwise approved by Agent in writing or as Debtor is otherwise directed in
accordance with the Intercreditor Agreement, continue to be deposited in one or
more Deposit Accounts. Except as otherwise expressly permitted herein, in the
Intercreditor Agreement or in Section 7.2(d) of the Note Agreement, cash,
checks, drafts and other Instruments used or arising in connection with business
operations at the Centers shall be

                                       13

<PAGE>

delivered, picked up and otherwise moved or transported only by a Custodial
Agent that has executed a Letter Agreement substantially similar to Exhibit G to
the Note Agreement.

                  (d)      The Debtor is and shall remain in full compliance
with all agency and trust agreements with Custodial Agents and Depositories, and
all representations, warranties and certifications of the Debtor, and, to the
best knowledge of the Debtor, all representations, warranties and certifications
of the Custodial Agent or Depository, as applicable, contained therein are and
shall continue to be true and correct in all material respects, and, to the best
knowledge and belief of the Debtor, all Custodial Agents and Depositories are
and shall continue to be in full compliance therewith.

         4.12.    With respect to any Deposit Account for which a Depository
shall not agree to provide a copy of the periodic bank statement therefor
directly to Agent, the Debtor agrees to provide a copy of such statement
(exclusive of all detail relating to items thereon) to Agent by facsimile
transmission no later than the next Business Day following the date such
statement is received by the Debtor. The Debtor shall promptly provide a copy of
any such detail to Agent by mail or courier for delivery on the next Business
Day following the facsimile transmission of the statement without detail.

         4.13.    Schedule 1 to the Intercreditor Agreement, Schedule 5.1(v) to
the Note Agreement and each of the Schedules to this Security Agreement, each as
amended and revised pursuant to the Certificate of Update delivered pursuant to
the Note Agreement, are complete and accurate in all material respects.

         4.14.    The Debtor shall not grant any liens or security interests in
any of its property to any Person except for Permitted Liens.

         4.15     Between the date which is 54 months after the date hereof and
the date which is 56 months after the date hereof (and every 60 months
thereafter) the Debtor shall provide a legal opinion issued by its outside
counsel addressed to Agent confirming the perfection of the liens and security
interests granted hereunder and specifying any action required to be taken
between the date of such opinion and the date of such next opinion to maintain
the perfection of Agent's liens and security interests.

         5.       AGENT'S RIGHTS AND REMEDIES.

         5.1.     Upon the occurrence and continuance of an Event of Default:

                   (a)      Agent may at any time, without further notice to the
Debtor, notify the Obligors and other Persons whose obligations have been
assigned, or in which a security interest has been granted hereunder, that such
obligations have been assigned, or a security interest therein has been granted,
to Agent and/or that payments thereunder or in respect thereof shall be made
directly to Agent or to Agent's designee. If requested by Agent, the Debtor will
so notify the Obligors and other Persons whose obligations to the Debtor have
been assigned or in which a security interest has been granted hereunder. Agent
may in its own name or in the name of others (including, without limitation, the
Debtor) communicate with such Obligors and other Persons,

                                       14

<PAGE>

enforce payment or collect any of the Collateral by legal proceedings or
otherwise, and adjust, settle or compromise the amount or payment thereof;

                  (b)      All payments received by the Debtor under or in
connection with any of the Collateral shall be held by the Debtor in trust for
Agent, shall be segregated from other funds of the Debtor and shall, forthwith
upon receipt by the Debtor, be turned over to Agent; and

                  (c)      Any and all such payments so received by the Agent
(whether from the Debtor or otherwise) shall, subject to the terms of the
Intercreditor Agreement, be immediately applied to the Obligations in the order
specified in Article 3 of the Note Agreement.

         5.2.     Upon the occurrence and continuance of an Event of Default,
Agent may exercise in respect of the Collateral, in addition to all other rights
and remedies provided for herein, the Intercreditor Agreement or otherwise
available to it, all the rights and remedies of a secured party on default under
the Uniform Commercial Code (whether or not the Uniform Commercial Code applies
to the affected Collateral), and under all other applicable law as in effect in
any relevant jurisdiction. In addition, Agent may also:

                  (a)      require the Debtor to, and the Debtor hereby agrees
that it will at its expense and upon request of Agent, assemble all or any part
of the Collateral as directed by Agent and make such Collateral available to
Agent at a place to be designated by Agent, which place shall be reasonably
convenient to Agent and the Debtor, whether at the premises of the Debtor or
otherwise;

                  (b)      enter, with or without process of law and without
breach of the peace, any premises where any of the Collateral or the books and
records of the Debtor related thereto are or may be located and, without charge
or liability to Agent, seize and remove such Collateral and such books and
records from such premises or remain upon such premises and use the same for the
purpose of enforcing any and all rights and remedies of Agent under this
Security Agreement; and

                  (c)      sell, lease, assign, grant an option or options to
purchase or otherwise dispose of all or any part of the Collateral in one or
more parcels, at public or private sale or sales, at any exchange, broker's
board or at any of Agent's offices or elsewhere, at such prices as Agent may
deem best, for cash, on credit or for future delivery, and upon such other terms
as Agent may deem commercially reasonable; provided, however, that the Debtor
shall not be credited with the net proceeds of any such credit sale, future
delivery or lease of the Collateral until the cash proceeds thereof are actually
received by Agent. The Debtor agrees that, to the extent notice of sale shall be
required by law, at least ten (10) days' notice to the Debtor of the time and
place of any public sale, or the time after which any private sale is to be
made, shall constitute reasonable notification. No notification required by law
need be given to the Debtor if the Debtor has signed, a statement renouncing any
right to notification of sale or other intended disposition. Agent shall not be
obligated to make any sale of Collateral regardless of notice of sale having
been given. Agent may adjourn any public or private sale from time to time by
announcement at the time and place fixed therefor, and such sale may, without
further notice, be

                                       15

<PAGE>

made at the time and place to which it was so adjourned. Agent shall have the
right upon any such public sale or sales and, to the extent permitted by law,
upon any such private sale or sales, to purchase the whole or any part of the
Collateral so sold, free of any right or equity of redemption in the Debtor
which right or equity is hereby expressly waived and released. In the event of a
sale of Collateral, or any part thereof, to Agent following the occurrence of an
Event of Default, Agent shall not deduct or offset from any part of the purchase
price to be paid therefor any indebtedness owing to it by the Debtor. Any and
all Proceeds received by Agent with respect to any sale of, collection from or
other realization upon all or any part of the Collateral whether consisting of
monies, checks, notes, drafts, bills of exchange, money orders or commercial
paper of any kind whatsoever, shall, subject to the terms of the Intercreditor
Agreement, be immediately applied to the Obligations in the order specified in
Article 3 of the Note Agreement. Agent is hereby granted a license or other
right to use, without charge, the Debtor's labels, copyrights, patents, rights
of use of any name, trade names, trademarks and advertising matter, or any
property of a similar nature, in advertising for sale and selling any
Collateral.

         5.3.     To the extent permitted by applicable law, the Debtor waives
all claims, damages and demands against Agent arising out of the repossession,
retention or sale of the Collateral, or any part or parts thereof, except any
such claims, damages and awards arising out of the gross negligence or willful
misconduct of Agent, as the case may be. In no event, however, does the Debtor
waive any obligations of Agent under applicable law to act in a commercially
reasonable manner.

         5.4.     The Debtor recognizes that in the event the Debtor fails to
perform, observe or discharge any of its obligations or liabilities under this
Security Agreement, no remedy at law will provide adequate relief to Agent and
Agent shall be entitled to temporary and permanent injunctive relief in any such
case without the necessity of proving actual damages.

         5.5.     The rights and remedies provided under this Security Agreement
are cumulative and may be exercised singly or concurrently, and are not
exclusive of any rights and remedies provided by law or equity.

         5.6.     All rights of action and rights to assert claims upon or under
this Security Agreement and the other Purchase Documents may be enforced by
Agent without the possession of any promissory note or other instrument,
document or agreement evidencing the Obligations or the production thereof in
any trial or other proceeding relative thereto, and any such suit or proceeding
instituted by the Agent shall be brought in its name on behalf of the Purchasers
and any recovery of judgment shall be held as part of the Collateral.

         6.       WAIVERS.

         6.1.     The Debtor hereby waives notice of nonpayment of any of the
Obligations, demand, presentment, protest and notice thereof with respect to any
and all Instruments, notice of acceptance thereof, notice of loans or advances
made, credit extended, Collateral received or delivered, or any other action
taken in reliance hereon, and all other demands and notices of any description,
except such as are expressly provided for herein.

                                       16

<PAGE>

         6.2.     No failure, omission or delay on the part of Agent in
exercising any right, remedy, option or power under this Security Agreement, or
in giving or insisting upon strict performance by the Debtor hereunder or in
giving notice hereunder shall operate as a waiver of the same or any other power
or right, and no single or partial exercise of any such power or right shall
preclude any other or further exercise thereof or the exercise of any other such
power or right. Agent, notwithstanding any such failure, shall have the right
thereafter to insist upon the strict performance by the Debtor of any and all of
the terms and provisions of this Security Agreement to be performed by the
Debtor. The collection and application of proceeds, the entering and taking
possession of the Collateral, and the exercise of the rights of Agent contained
in the Security Documents, including, without limitation, this Security
Agreement, shall not cure or waive any Event of Default. No waiver by Agent of
any breach or default of or by any party hereunder shall be deemed to alter or
affect Agent's rights under this Security Agreement with respect to any prior or
subsequent default.

         6.3.     The Debtor waives and releases the benefit of all valuation,
appraisal, redemption and exemption laws to the extent permitted by applicable
law. In the event Agent seeks to take possession of any of the Collateral by
replevin or other court process, the Debtor hereby irrevocably waives (a) any
bonds, and any surety or security relating thereto required by any statute,
court rule or otherwise as an incident to such possession and (b) any demand for
possession of the Collateral prior to the commencement of any suit or action to
recover possession thereof.

         6.4      The Debtor, to the extent it may lawfully do so, on behalf of
itself and all who may claim through or under it, including, without limitation,
any and all subsequent creditors, vendees, assignees and lienors, expressly
waives and releases any, every and all rights to demand or to have any
marshaling of the Collateral upon any sale, whether made under any power of sale
granted under this Security Agreement, or pursuant to judicial proceedings or
upon any foreclosure or any enforcement of this Security Agreement or the other
Purchase Documents and consents and agrees that all the Collateral may at any
such sale be offered and sold as an entirety. In no event, however, does the
Debtor waive any obligations of the Agent or the Purchasers under applicable law
to dispose of the Collateral in a commercially reasonable manner.

         7.       MISCELLANEOUS.

         7.1.     THIS SECURITY AGREEMENT SHALL BE GOVERNED, CONSTRUED AND
INTERPRETED IN ALL RESPECTS IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.
Notwithstanding the general limitations set forth in Section 10.9 of the Note
Agreement, or any applicable provisions of any other Purchase Document, the
Debtor hereby consents and submits to the jurisdiction of any local, state or
federal court located within a jurisdiction in which any of the Collateral shall
be located for purposes of any action related to such Collateral that is
commenced by Agent to enforce or foreclose its security interest hereunder. The
Debtor warrants and represents that it has appointed CT Corporation or one of
its affiliates as its registered agent in the jurisdictions of Alabama,
Arkansas, Arizona, California, Colorado, Florida, Georgia, Indiana, Louisiana,
Maryland, Missouri, North Carolina, New Mexico, Nevada, Ohio, Oklahoma, Oregon,
South Carolina, Tennessee, Virginia, Washington,

                                       17

<PAGE>

Wyoming, and the District of Columbia, and covenants with Agent that such
registered agent shall not be changed without written notice to, and the written
consent of, Agent. The Debtor hereby waives any right it may have to transfer or
change the venue of any litigation brought against it by Agent in accordance
with this Section 7.1.

         7.2.     Neither this Security Agreement nor any portion or provisions
hereof may be changed, modified, amended, waived, supplemented, discharged,
canceled or terminated orally or by any course of dealing, or in any manner
other than by an agreement in writing, signed by the parties hereto.

         7.3.     All notices or other communications hereunder shall be given
in the manner and to the addresses set forth in Section 10.6 of the Note
Agreement.

         7.4.     The Debtor agrees that checks and other Instruments delivered
to Agent in payment or on account of the Obligations constitute conditional
payment only until payment is actually received in immediately payable funds by
Agent, and, subject to the provisions of Article 3 of the Note Agreement, and
similar provisions in any other Purchase Document, the Debtor waives the right
to direct the application of any and all payments at any time or times hereafter
received by Agent on account of the Obligations. The Debtor agrees that Agent
shall have the continuing exclusive right to apply and reapply any and all such
payments in such manner as Agent may deem advisable, notwithstanding any entry
by Agent upon any of its books and records.

         7.5.     If any part of this Security Agreement is contrary to,
prohibited by, or deemed invalid under applicable laws or regulations, such
provision shall be inapplicable and deemed omitted to the extent so contrary,
prohibited or invalid, but the remainder hereof shall not be invalidated thereby
and shall be given effect so far as possible.

         7.6.     The captions in this Security Agreement are intended for
convenience only and do not constitute and shall not be interpreted as part of
this Security Agreement.

         7.7.     To the extent that any of Agent receive payments on the
Obligations or receive Proceeds of Collateral which are subsequently
invalidated, declared to be fraudulent or preferential, or are required to be
repaid to a trustee, receiver or any other Person under the Bankruptcy Code or
under state, federal or common law, then, to the extent the payments or Proceeds
are so repaid, the Obligations or part thereof which was intended to be
satisfied shall be revived and will continue to be in full force and effect as
if those payments or Proceeds had never been received by Agent.

         7.8.     This Security Agreement may be executed and delivered in
counterparts, all of which taken together shall constitute this Security
Agreement. Delivery of an executed signature page by any of the parties by
facsimile transmission shall be deemed execution and delivery of this Security
Agreement for all purposes hereof. Notwithstanding execution and delivery of
this Security Agreement by facsimile transmission as provided above, the parties
shall undertake to provide each other with original executed copies of this
Security Agreement within two (2)

                                       18

<PAGE>

Business Days following the date hereof. In making proof of this Security
Agreement, it shall not be necessary to produce or account for more than one
such counterpart.

         7.9.     In the event of any conflict between the terms, conditions,
covenants, or agreements contained herein and in the Intercreditor Agreement,
the terms, conditions, covenants and agreements contained in the Intercreditor
Agreement shall control. Notwithstanding anything to the contrary contained
herein, (a) each exercise of rights or remedies in respect of the Collateral
hereunder by Agent shall be subject to, and shall only be made in accordance
with, the Intercreditor Agreement and (b) any and all Proceeds received by Agent
with respect to any sale of, collection from or other realization upon all or
any part of the Collateral whether consisting of monies, checks, notes, drafts,
bills of exchange, money orders or commercial paper of any kind whatsoever,
shall, subject to the terms, of the Intercreditor Agreement, be immediately
applied to the Obligations in the order specified in Article 3 of the Note
Agreement.

         7.10.    WAIVER OF JURY TRIAL, ETC.

         (A)      EACH PARTY HERETO HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY OF
ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS SECURITY
AGREEMENT OR ANY OF THE OTHER PURCHASE DOCUMENTS OR IN ANY WAY CONNECTED WITH OR
RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS
SECURITY AGREEMENT OR ANY OF THE OTHER PURCHASE DOCUMENTS OR THE TRANSACTIONS
RELATED HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. EACH PARTY HERETO
MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS SECURITY AGREEMENT AS WRITTEN
EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO
TRIAL BY JURY.

         (b)      EACH PARTY HERETO (I) CERTIFIES THAT NEITHER ANY
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO
ENTER INTO THIS SECURITY AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVER AND
CERTIFICATIONS HEREIN.

         7.11.    SUBMISSION TO JURISDICTION.

         (a)      ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS SECURITY
AGREEMENT MAY BE BROUGHT IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN
DISTRICT OF TEXAS, DALLAS DIVISION AND, BY EXECUTION AND DELIVERY OF THIS
SECURITY AGREEMENT, THE DEBTOR HEREBY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE
AFORESAID COURT.

                                       19

<PAGE>

        (b)      THE DEBTOR HEREBY IRREVOCABLY WAIVES, IN CONNECTION WITH ANY
SUCH ACTION OR PROCEEDING, ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY
OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON
CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH
ACTION OR PROCEEDING IN SUCH JURISDICTION.

         (c)      THE DEBTOR HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF
PROCESS OF THE AFOREMENTIONED COURT IN ANY SUCH ACTION OR PROCEEDING BY THE
MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO
IT AT ITS ADDRESS AT ACE CASH EXPRESS, INC., 1231 GREENWAY DRIVE, SUITE 800,
IRVING, TEXAS 75038, ATTENTION: CHIEF FINANCIAL OFFICER, OR AT SUCH OTHER
ADDRESS AS SHALL BE DESIGNATED BY IT IN A WRITTEN NOTICE TO BANK AGENT.

         (d)      NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY HOLDER OF ANY OF
THE OBLIGATIONS TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO
COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE DEBTOR IN ANY OTHER
JURISDICTION.

                [Remainder of the Page Intentionally Left Blank]

                                       20

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Security
Agreement or caused this Security Agreement to be executed and delivered by
their duly authorized officers as of the date first set forth above.

                                        ACE CASH EXPRESS, INC., as Debtor

                                        By:_____________________________________

                                        Name:___________________________________

                                        Title:__________________________________

                                       21

<PAGE>

                                   Schedule 1

                                   Trade names

<PAGE>

                                   Schedule 2

                        Centers and Collateral Locations

<PAGE>

EXHIBIT B - ACE SUBSIDIARIES

THIS ASSIGNMENT OF DEPOSIT ACCOUNTS AND SECURITY AGREEMENT IS SUBORDINATE
(INCLUDING WITH RESPECT TO LIEN PRIORITY) IN THE MANNER AND TO THE EXTENT SET
FORTH IN THAT CERTAIN INTERCREDITOR AGREEMENT, DATED AS OF THE DATE HEREOF, BY
AND AMONG BORROWER, AGENT AND CERTAIN OTHER CREDITORS OF BORROWER (AS AMENDED,
MODIFIED OR RESTATED FROM TIME TO TIME, THE "INTERCREDITOR AGREEMENT") TO THE
INDEBTEDNESS AND OTHER LIABILITIES OWED BY BORROWER UNDER AND PURSUANT TO THAT
CERTAIN CREDIT AGREEMENT, DATED AS OF THE DATE HEREOF, BY AND AMONG BORROWER,
THE LENDERS FROM TIME TO TIME PARTY THERETO, WELLS FARGO BANK TEXAS, NATIONAL
ASSOCIATION, AS ADMINISTRATIVE AGENT FOR SUCH LENDERS ("BANK AGENT"), AND
JPMORGAN CHASE BANK, AS AGENT FOR SUCH LENDERS, AS THE SAME MAY BE AMENDED OR
MODIFIED FROM TIME TO TIME AND EACH RELATED "CREDIT DOCUMENT" (AS SUCH TERM IS
DEFINED THEREIN).

         ASSIGNMENT OF DEPOSIT ACCOUNTS AND SECURITY AGREEMENT

         This ASSIGNMENT OF DEPOSIT ACCOUNTS AND SECURITY AGREEMENT (this
"Security Agreement") dated as of March 31, 2003, is made by each Subsidiary (as
such term is defined in the hereinafter defined Note Agreement ) of Borrower (as
hereinafter defined) now a signatory hereto and which shall hereafter become a
party hereto pursuant to Section 7.12 hereof (each a "Debtor" and collectively,
the "Debtors"), in favor of AMERICAN CAPITAL FINANCIAL SERVICES, INC., a
Delaware corporation ("ACFS"), as administrative agent (ACFS in such capacity,
"Agent") for the purchasers (the "Purchasers") from time to time a party to the
Note Agreement (as such term is defined below).

                              W I T N E S S E T H:

         WHEREAS, each Debtor is a direct or indirect wholly-owned Subsidiary of
Ace Cash Express, Inc., a Texas corporation ("Borrower");

         WHEREAS, Borrower, Agent, and Purchasers have entered into that certain
Note Purchase Agreement of even date herewith (as amended, supplemented,
restated, or otherwise modified from time to time, the "Note Agreement");

         WHEREAS, it is a condition precedent to the extension of credit under
the Note Agreement and to the Purchasers' obligation under the Note Agreement
that the Debtors shall have executed and delivered this Security Agreement;

         WHEREAS, the board of directors of each Debtor has determined that each
Debtor will significantly benefit, directly or indirectly, from the extensions
of credit by the Purchasers to Borrower under the Note Agreement and the other
transactions contemplated by the Purchase Documents (as defined in the Note
Agreement); and

<PAGE>

         WHEREAS, it is a condition precedent to the extension of credit under
the Note Agreement and to Purchasers' obligations under the Note Agreement, that
the Debtors, Agent and certain other creditors of the Debtor enter into that
certain Intercreditor Agreement of even date herewith (as amended, modified or
restated from time to time, the "Intercreditor Agreement"), pursuant to which,
among other things, Agent and the other parties thereto shall establish their
relative rights and respective lien priorities in and to the Collateral. The
Debtors have acknowledged and accepted the terms of the Intercreditor Agreement.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, in order to induce the Purchasers under the Note
Agreement to extend credit thereunder to Borrower, each Debtor, intending to be
legally bound, hereby agrees as follows:

         1.       DEFINITIONS. As used herein, all terms describing items or
types of collateral defined in the Uniform Commercial Code in effect in the
State of Texas shall have the meanings given therein unless otherwise defined
herein, capitalized terms used herein that are not otherwise defined in this
Security Agreement shall have the meanings ascribed to them in the Note
Agreement, and the following terms shall have the meanings given in this Section
1.

         1.1.     The term "Center" shall mean a location where any Debtor
conducts check cashing and related business. All of the Debtors' Centers are
identified on Schedule 2 hereto, and the term Center shall include, without
limitation, each and every location where any Debtor conducts check cashing and
related business irrespective of whether such location is listed on Schedule 2
hereto or is timely disclosed on a Certificate of Update.

         1.2.     The term "Collateral" shall mean and include:

                  a.       All of the Deposit Accounts;

                  b.       All of the Cash Holdings (to the extent Cash Holdings
are not otherwise included in the definitions of Deposit Accounts or Inventory);

                  c.       All of the Receivables;

                  d.       All of the Inventory;

                  e.       All of the Equipment;

                  f.       All documents and instruments (whether negotiable or
nonnegotiable), chattel paper, checks (of any nature), money orders (in blank
form or completed), drafts, notes, investments, securities, acceptances,
certificates of deposit, trust receipts, and any other writings evidencing a
right to the payment of money, and all cash and currency, whether now or
hereafter owned by any Debtor, whether or not in the possession of any Debtor
(collectively, the "Instruments");

                                        2

<PAGE>

                  g.       All certificates of title, documents of title,
certificates and policies of insurance, and fidelity bonds, whether now or
hereafter owned by any Debtor, and whether or not in the possession of any
Debtor;

                  h.       All patents, trademarks, trade names, service marks,
registration marks, logos and the like, whether now or hereafter owned by any
Debtor;

                  i.       (i) All of Debtors' rights as a consignee or an
unpaid vendor, whether now owned or hereafter acquired; (ii) all additional
amounts, whether now owned or hereafter acquired, due to any Debtor from any
Person, irrespective of whether such additional amounts have been specifically
assigned to Agent; and (iii) all of Debtors' right, title and interest in other
property, including warranty claims, relating to any goods whatsoever securing
the Obligations;

                  j.       All of Debtors' ledger sheets, files, records, books
of account, business papers and documents (including, but not limited to,
computer programs, source codes, object codes, tapes and related electronic data
processing software and system documentation and manuals), whether now owned or
hereafter acquired;

                  k.       All of Debtors' rights under the agreements and
contracts with Custodial Agents set forth in Schedule 5.1(v) to the Note
Agreement and such other agreements or contracts whether now or hereafter
entered into by any Debtor for the collection, safekeeping and/or deposit of
checks, drafts and other instruments or Collateral, together with all renewals,
extensions, amendments and modifications thereof (all such contracts and
agreements and rights of any Debtor thereunder are herein collectively called
the "Custodial Agreement Rights");

                  l.       All of Debtors' other tangible and intangible assets,
including, but not limited to, any and all general intangibles, payment
intangibles, and contract rights, all liens or charges arising under the laws of
any state securing any portion of any Debtor's obligations in respect of any of
the Obligations and any guaranties by any Person related to the Obligations,
whether or not specifically enumerated above and whether now owned or hereafter
acquired; and

                  m.       All accessions or accretions to, substitutes for and
proceeds and products of the assets of any Debtor described in the above
subsections a. through l., in whatever form, and all insurance proceeds and
proceeds of tort claims paid or payable in connection with the loss or damage of
any of the assets of any Debtor described in the above subsections a. through
l.; excluding, however, from the above subsections a. through l., all hazardous
and nonhazardous wastes, including, but not limited to, recyclable waste
materials.

         Notwithstanding the foregoing or any other provision of the Security
Documents, Agent acknowledges and agrees that the Collateral shall not include
(i) any of the food stamp coupons or any other items held in trust by any Debtor
or any of the rights of any Debtor under that certain Food Stamp Issuing Agent
Contract with the Texas Department of Human Services or under similar contracts
with similar governmental entities in Texas or in other states, or (ii) any of
the lottery tickets or similar lottery items, together with any Deposit Accounts
established for purposes of complying with any applicable jurisdiction's lottery
statutes or governing regulations

                                        3

<PAGE>

or any applicable lottery contracts, any and all rights of any Debtor under
lottery contracts and applications with lottery authorities, and all cash and
currency held in trust by any Debtor and due to any of the various state lottery
authorities, or (iii) any demand accounts (whether interest-bearing or not, and
if interest-bearing, then all interest accrued and paid or payable thereon,
whether now or hereafter established and maintained from time to time by any
Debtor, and all moneys from time to time in or credited to any and all such
deposit accounts, including all earnings or profits therefrom, in the form of
interest or otherwise) held by any Debtor as agent for third parties containing
funds owned by such third parties to be used for the payment of utility bills,
payday loans, or similar customer services to the extent (in the case of each of
clause (i), (ii) and (iii)) a grant of any security interest therein would be
void or otherwise impermissible in respect of such contract or property. In
addition, notwithstanding the foregoing or any other provision of the Security
Documents, Agent acknowledges and agrees that the Collateral shall not include
(i) any Equipment that is owned by Travelers and that is provided by Travelers
to any Debtor for use in such Debtor's business, or (ii) any money order stock
(in blank form) that is owned by Travelers and that is provided by Travelers to
any Debtor for use in such Debtor's business. Nothing contained in this Section
1.2 or elsewhere in this Security Agreement shall be deemed or interpreted to
limit or otherwise diminish the exception provided for in Section 7.2(f) of the
Note Agreement related to the sale of assets.

         1.3.     The term "Custodial Agent" shall mean an armored car service
organization utilized by any Debtor to transport Collateral from Centers to
Depositories at which Deposit Accounts are maintained. All of Debtors' Custodial
Agents, and all of Debtors' agreements with its Custodial Agents, are identified
on Schedule 5.1(v) to the Note Agreement, and the term Custodial Agent shall
include, without limitation, each and every armored car service organization
utilized by any Debtor irrespective of whether it is listed on Schedule 5.1(v)
to the Note Agreement or is timely disclosed on a Certificate of Update.

         1.4.     The term "Custodial Agreement Rights" shall have the meaning
set forth in Section 1.2.k of this Security Agreement.

         1.5.     The term "Debtor" shall mean each Subsidiary of Borrower
signatory hereto and which shall hereafter become a party hereto pursuant to
Section 7.12 hereof, together with their respective successors and assigns. The
Debtors also transact business under the trade name(s) identified on Schedule 1
hereto.

         1.6.     The term "Deposit Accounts" shall mean all demand, time,
savings, passbook and other like accounts (including any account evidenced by a
certificate of deposit), whether interest-bearing or not, and if
interest-bearing then all interest accrued and paid or payable thereon, whether
now or hereafter established and maintained from time to time by any Debtor, and
all moneys from time to time in or credited to any and all such deposit
accounts, including all earnings or profits therefrom in the form of interest or
otherwise. All of Debtors' Deposit Accounts are identified on Schedule 5.1(v) to
the Note Agreement, and the term Deposit Account shall include, without
limitation each and every account established and maintained by any Debtor at a
Depository irrespective of whether such account is listed on Schedule 5.1(v) to
the Note Agreement or is timely disclosed on a Certificate of Update.

                                        4

<PAGE>

         1.7.     The term "Depository" shall mean each financial institution at
which a Deposit Account is maintained.

         1.8.     The term "Equipment" shall mean and include all of Debtors'
equipment, whether now owned or hereafter acquired, and includes all goods for
use in such Debtor's business (including, without limitation, all vehicles,
motor vehicles, mobile goods, machinery, furniture and trade fixtures) with all
parts, equipment and attachments relating thereto. The Equipment is located at
the locations of Collateral identified on Schedule 2 hereto.

         1.9.     The term "Instruments" shall have the meaning set forth in
Section 1.2.f of this Security Agreement.

         1.10.    The term "Inventory" shall mean and include all of the
Debtors' inventory, whether now owned or hereafter acquired, including, without
limitation, all Instruments, cash and currency maintained by such Debtor for
sale at its operating locations. The Inventory is located at the locations of
Collateral identified on Schedule 2 hereto.

         1.11.    As used herein, the term "Obligations" means:

         (a)      all indebtedness, obligations and liabilities, including all
costs, expenses and fees, now or hereafter owing by Borrower to Agent or
Purchasers under the Note Agreement, the Notes or any other Purchase Document;

         (b)      any and all renewals, extensions, modifications and increases
of such Obligations; and

         (c)      all costs, expenses and fees, including but not limited to all
court costs and reasonable attorneys' fees, arising in connection with the
collection of any or all amounts, indebtedness, obligations and liabilities
described in items (a) through (b) above, including all costs, expenses and fees
arising in connection with the enforcement of this Security Agreement.

         1.12     The term "Obligor" shall mean any Person, other than the
Debtors, obligated on or with respect to any Receivable, Instrument, document,
chattel paper or general intangible, however such obligation may arise or be
evidenced, whether such liability is direct or indirect, contingent or mature,
primary or secondary.

         1.13.    The term "Purchasers" shall have the meaning given to such
term in the preamble of this Security Agreement.

         1.14.    The term "Receivables" shall mean and include the following,
whether now existing or hereafter arising: all of Debtors' accounts and rights
to payment for goods sold or leased or for services rendered, all sums of money
due or becoming due with respect thereto, documents, instruments or agreements
pertaining thereto, all guaranties and security therefor, and including all
goods giving rise thereto and the rights pertaining to such goods (e.g., the
right of

                                        5

<PAGE>

stoppage in transit), and all related insurance and proceeds payable with
respect to claims thereunder.

         2.       GRANT OF SECURITY INTEREST. To secure the full and prompt
payment, observance and performance of all of the Obligations, each Debtor
hereby grants to Agent for the benefit of Agent and each Purchaser a continuing
security interest in all of the right, title and interest of such Debtor in the
Collateral, wherever located, whether in such Debtor's possession or in the
possession and control of a third party for such Debtor's account. Each Debtor
agrees that all such Debtor's ledger sheets, files, records, books of account,
business papers and documents shall, until delivered to or removed by Agent, be
kept by such Debtor in trust for Agent and without cost to Agent in appropriate
containers in safe places. Each confirmatory assignment schedule or other form
of assignment hereafter executed by any Debtor shall be deemed to include the
foregoing security interest grant, whether or not the same appears therein.

         3.       CUSTODY, INSPECTION, COLLECTION AND MAINTENANCE OF THE
COLLATERAL AND RECORDS.

         3.1.     Each Debtor will safeguard and protect all of the Collateral
and make no disposition thereof, except for the disposition of Inventory in the
ordinary and usual course of such Debtor's business or as otherwise permitted
under the Note Agreement.

         3.2.     Each Debtor shall maintain books and records pertaining to the
Collateral in such detail, form and scope as it currently does, or as Agent
hereafter shall reasonably require. At all reasonable times in accordance with
the Note Agreement, Agent shall have full access to, and the right to audit,
check, inspect and make abstracts and copies from, each Debtor's books, records,
audits, correspondence and all other papers relating to the Collateral. In
accordance with the Note Agreement, Agent and its agents, may enter upon any of
the Debtors' premises at any time during business hours and at any other
reasonable time, and from time to time, for the purpose of inspecting the
Collateral and any and all records pertaining thereto, provided that prior to a
Default or an Event of Default, the Debtors' expense for any of the items
referenced in this sentence and the preceding sentence shall be limited to
$5,000 during any Fiscal Year. Agent acknowledges that each Debtor's security
procedures may preclude unannounced inspections of some aspects of such Debtor's
business, and each Debtor agrees to cooperate fully with Agent in the exercise
of its rights hereunder. At any time a Event of Default exists, each Debtor
shall pay when billed the reasonable costs and expenses (including attorneys'
fees) incurred by Agent in connection with any inspections in accordance with
this Section 3.2. Nothing in this Section 3.2 shall in any way diminish each
Debtor's obligations under Sections 7.1(h), 10.4 or 10.13 of the Note Agreement.

         3.3.     Each Debtor hereby irrevocably authorizes and directs all
accountants and auditors employed by such Debtor or Agent at any time during the
term of this Security Agreement during reasonable business hours (unless an
Event of Default has occurred and is continuing, then at any time) to exhibit
and deliver to Agent copies of any of such Debtor's financial statements, trial
balances or other accounting records of any sort in the accountant's or
auditor's possession, and to disclose to Agent any information they may have
concerning such

                                        6

<PAGE>

Debtor's financial status and business operations, provided that Agent notify
such Debtor of such exhibition or delivery to the Agent of such financial
statements, trial balances or other accounting records or information concerning
such Debtor's financial status and operations. Each Debtor hereby authorizes all
federal, state and municipal authorities to furnish to Agent copies of reports
or examinations relating to such Debtor, whether made by such Debtor or
otherwise; provided that Agent notify such Debtor of Agent's receipt of such
reports and examinations. At any time an Event of Default exists, each Debtor
shall pay when billed the reasonable costs and expenses (including attorneys'
fees) incurred by Agent in connection with this Section 3.3. Nothing in this
Section 3.3 shall in any way diminish each Debtor's obligations under Sections
7.1(h), 10.4 or 10.13 of the Note Agreement.

         3.4.     Each Debtor will, immediately upon learning thereof, report to
Agent all matters materially affecting the loss, value, enforceability or
collectability of any material portion of the Collateral.

         3.5.     Except as otherwise expressly provided herein, nothing herein
contained shall be construed to constitute any Debtor as Agent's agent for any
purpose whatsoever, and Agent shall not be responsible or liable for any
shortage, discrepancy, damage, loss or destruction of any part of the Collateral
wherever the same may be located and regardless of the cause thereof, unless the
same results from Agent's gross negligence or willful misconduct. Agent does
not, by any provision contained herein or in any assignment or otherwise, assume
any obligations of any Debtor under any contract or agreement assigned to Agent,
and Agent shall not be responsible in any way for the performance by any Debtor
of any of the terms and conditions thereof except as Agent hereafter shall
assume such responsibility expressly in writing.

         3.6.     Each Debtor has paid and shall continue to pay, when due, all
taxes, assessments and other charges levied or assessed upon any of the
Collateral; provided, however, no Debtor shall be required to pay any such
taxes, assessments or other charges if any such nonpayment will not have a
Material Adverse Effect, or if (a) the amount, applicability or validity thereof
is currently being contested in good faith by appropriate action promptly
initiated and diligently conducted, (b) such Debtor shall have set aside on its
books reserves (segregated to the extent required by GAAP) reasonably determined
by such Debtor to be adequate with respect thereto, and (c) such Debtor has
notified Agent of such circumstances in detail reasonably satisfactory to the
Required Purchasers.

         3.7.     Each Debtor presently complies with, and shall continue to
comply with, all acts, rules, regulations and orders of any legislative,
administrative or judicial body or official applicable to the Collateral or any
part thereof or to the operation of such Debtor's business, noncompliance with
which would have a Material Adverse Effect. Each Debtor may, however, contest or
dispute any acts, rules, regulations, orders and directions of those bodies or
officials in any reasonable manner; provided that Required Purchasers are
satisfied that the contest or dispute will not have a Material Adverse Effect.

         3.8.     Agent may at any time take such steps as Agent deems necessary
to protect Agent's security interest in and to preserve the Collateral,
including, but not limited to, the hiring

                                        7

<PAGE>

of such security guards or the placing of other security protection measures as
Agent may deem appropriate. Agent may, upon the occurrence and continuance of an
Event of Default, employ and maintain at any of the Debtor's premises a
custodian who shall have full authority to do all acts necessary to protect
Agent's security interest in the Collateral. Each Debtor agrees to cooperate
fully with all of Agent's efforts to preserve the Collateral and will take such
actions to preserve the Collateral as Agent may direct, in each case subject to
the Intercreditor Agreement. All of Agent reasonable expenses of preserving the
Collateral, including any expenses relating to the compensation and bonding of a
custodian, shall be charged to Borrower's account and shall be deemed a part of
the Obligations secured hereunder.

         3.9.     All costs and expenses, including, without limitation,
reasonable attorneys' fees, incurred by Agent in all efforts made to enforce
payment of the Obligations or otherwise affect collection of any of the
Collateral, as well as all costs and expenses, including attorneys' fees and
legal expenses, incurred in connection with the entering into a proposed or
actual modification to this Security Agreement or the enforcement of this
Security Agreement and/or instituting, maintaining, preserving, protecting,
enforcing or foreclosing Agent's security interest in any of the collateral,
whether through judicial proceedings or otherwise, or in defending or
prosecuting any actions or proceedings arising out of or relating to Agent's
transactions with the Debtors, shall be charged to Borrower's account and shall
be deemed a part of the Obligations secured hereunder.

         3.10.    Each Debtor shall bear the full risk of loss with respect to
the Instruments, Inventory or Equipment in which Agent has a security interest,
except for any loss caused by Agent's gross negligence or willful misconduct. At
each Debtor's own cost and expense, each Debtor shall keep all of the
Instruments, Inventory and Equipment insured, with reputable insurance companies
in amounts reasonably acceptable to Agent, against the hazards of fire, flood,
sprinkler leakage, hazards covered by extended coverage insurance and such other
hazards as may be required by Agent pursuant to the Note Agreement; provided
that such insurance coverage shall be consistent with industry practices. Each
Debtor shall cause to be delivered to Agent, upon request, the insurance
policies or binders therefor and, at least fifteen (15) days prior to the
expiration of any such insurance, additional policies or duplicates thereof, or
binders, evidencing the renewal or replacement of such insurance and the payment
of the premiums therefor. Such policies shall provide, in a manner reasonably
satisfactory to Agent, that any losses thereunder shall be payable first to
Agent as Agent's interest may appear. Each insurance policy to be provided under
this Section 3.10 shall contain an agreement by the insurer that it will not
cancel such policy except upon at least thirty (30) calendar days' prior written
notice to Agent, and that any loss otherwise payable thereunder shall be payable
notwithstanding any act or negligence of the applicable Debtor which might,
absent such agreement, result in a forfeiture of all or part of such insurance
payment. In the event of any loss thereunder, the insurers are directed by each
Debtor to make payment for such loss to Agent as its interest may appear if (a)
the loss involves claims which exceed in the aggregate Twenty Five Thousand and
00/100 Dollars ($25,000.00) or (b) an Event of Default has occurred and is
continuing, otherwise the payment for such losses shall be made directly to the
applicable Debtor. If any insurance losses are paid by check, draft or other
instrument payable to any Debtor and Agent jointly, Agent may endorse such
Debtor's name thereon and do such other things as Agent may deem advisable to

                                        8

<PAGE>

reduce the same to cash. All loss recoveries received by Agent upon any such
insurance and not remitted to the applicable Debtor shall be applied to the
Obligations in the order provided in the Note Agreement. No Debtor shall take
out separate insurance concurrent in form or contributing in the event of loss
with that required in this Section 3.10, unless Agent is included therein as a
named insured, with loss payable as required in this Section 3.10. The Debtors
shall immediately notify Agent whenever any such separate insurance is applied
for and shall promptly deliver to Agent the policy or policies or binders
evidencing the same.

         3.11.    Until the Debtors' authority to do so is terminated following
the occurrence and continuance of an Event of Default, each Debtor will, at such
Debtor's sole cost and expense, but on Agent's behalf and for Agent's account,
collect in trust for Agent all Instruments, cash and currency included in the
Collateral and received or receivable in the ordinary course of its business
(including all amounts unpaid on any Debtor's Receivables), and shall not
commingle such collections with such Debtor's other funds or use the same except
as permitted by the Note Agreement. In the event of any commingling, such
collected amounts shall be deemed impressed with a trust for the benefit of
Agent.

         3.12.    At any time following the occurrence and continuance of an
Event of Default, without notice to the Debtors, Agent shall have the right to
send notice of the assignment of and Agent's security interest in Receivables to
any Obligor of the Debtors or any third party holding or otherwise concerned
with any of the Collateral. Thereafter, following the occurrence and continuance
of an Event of Default, Agent shall have the sole right, to collect Receivables
and take possession of the Collateral. Any of Agent's actual, but reasonable,
accrued collection expenses under such circumstances, including, but not limited
to, stationery and postage, telephone and telegraph, secretarial and clerical
expenses and the salaries of any collection personnel used for collection, shall
be charged to Borrower's account and be deemed a part of the Obligations secured
hereby.

         3.13.    Upon Agent's request and upon the creation of any Receivables,
or at such intervals as Agent may require, the Debtors shall provide Agent with
such schedules, documents and/or information regarding the Receivables as Agent
reasonably may require. Agent shall have the right to confirm and verify all
Receivables and do whatever Agent reasonably may deem necessary to protect
Agent's security interest. The items to be provided under this Section 3.13 are
to be in form reasonably satisfactory to Agent and executed by each Debtor and
delivered to Agent from time to time solely for Agent's convenience in
maintaining records of the Collateral, and any Debtor's failure to deliver any
of such items to Agent shall not affect, terminate, modify or otherwise limit
Agent's security interest in any of the Collateral.

         3.14.    No Debtor shall, without Agent's consent, compromise or adjust
any of the Receivables (or extend the time for payment thereof) or grant any
additional discounts, allowances or credits thereon other than, in each case, in
the ordinary and usual course of such Debtor's business.

         3.15.    If any of the Receivables includes a charge for any tax
payable to any governmental taxing authority, Agent is hereby authorized in its
discretion to pay the amount

                                        9

<PAGE>

thereof to the proper taxing authority for Borrower's account and to charge the
applicable Debtor's account therefor, such amount shall be deemed a part of the
Obligations. Each Debtor shall notify Agent if any of the Receivables includes
any tax due to any such taxing authority, and in the absence of any Debtor's
notice or Agent's actual knowledge of the inclusion of any tax due, Agent shall
have the right to retain the full proceeds of such Receivables and shall not be
liable for any taxes that may be due from such Debtor by reason of the sale and
delivery creating such Receivables.

         3.16.    Agent shall have the irrevocable right, upon the occurrence
and continuance of an Event of Default, to receive, endorse, assign and/or
deliver in the name of Agent or any Debtor any check, draft or other Instrument,
and each Debtor hereby waives notice of presentment, protest and nonpayment of
any Instrument so endorsed. Each Debtor hereby irrevocably appoints Agent or
Agent's designee as such Debtor's attorney-in-fact with power to endorse such
Debtor's name upon any Instruments or other evidences of payment or Collateral
that may come into Agent's possession; to sign such Debtor's name on any invoice
relating to any of the Receivables, drafts against Obligors, assignments and
verifications of Receivables and notices to Obligors; to send verifications of
Receivables to any Obligor; to notify the postal authorities to change the
address for delivery of mail addressed to such Debtor to such address as Agent
may designate; to sign such Debtor's name on all financing statements or any
other documents or instruments deemed necessary or appropriate by Agent to
preserve, protect or perfect Agent's interest in the Collateral and to file the
same; and to do all other acts and things necessary to carry out the full intent
of this Security Agreement. All acts of said attorney or designee are hereby
ratified and approved, and said attorney or designee shall not be liable for any
acts of omission or commission, nor for any error of judgment or mistake of fact
or law, unless resulting from gross negligence or willful misconduct; this power
being coupled with an interest is irrevocable while any of the Obligations
remains unpaid. Notwithstanding the generality of the foregoing provisions,
Agent acknowledges that its exercise of such powers and authority shall be
solely in a manner consistent with, and for the purpose of, enforcement,
maintenance and protection of its rights under this Security Agreement.

         3.17.    Agent shall not, under any circumstances or in any event
whatsoever, have any liability for any error or omission or delay of any kind
occurring in the settlement, collection or payment of any of the Receivables or
any Instrument, or for any damage resulting therefrom unless resulting from its
gross negligence or willful misconduct. When entitled to exercise its rights,
and powers hereunder, Agent may, without consent from the Debtors, sue upon or
otherwise collect, extend the time of payment of, or compromise or settle for
cash, credit or otherwise upon any terms, any of the Receivables or any
securities, instruments or insurance applicable thereto and/or release the
Obligor thereon; provided that Agent shall provide the Debtors written notice of
any actions taken by Agent pursuant to this Section 3; provided further,
however, that Agent's failure to provide the Debtors with such written notice
shall not affect the validity of Agent's actions taken hereunder.

         3.18.    Each Debtor shall keep and maintain the Equipment in good
order and repair, ordinary wear and tear excepted, and shall not sell or
otherwise dispose of the Equipment except as permitted under the Note Agreement.

                                       10

<PAGE>

         3.19.    The Equipment shall be and shall remain personal property, and
nothing shall affect the character of the Equipment or cause the Equipment to
become part of realty, or prevent Agent from removing it from the premises on
which it is located or to which it may be attached following the occurrence and
continuance of an Event of Default.

         4.       REPRESENTATIONS, COVENANTS AND WARRANTIES. Each Debtor hereby
makes the following representations, covenants and warranties, which shall be
deemed to be incorporated by reference, as true and correct in all material
respects, in any request for an advance in connection with any indebtedness of
Borrower to the Purchasers for borrowed money, and each of the following
representations, covenants and warranties shall be deemed repeated and
confirmed, in all material respects, with respect to each item of the Collateral
as it is created or otherwise acquired by such Debtor:

         4.1.     The information set forth herein with respect to the
definitions of "Custodial Agent," "Debtor," "Deposit Accounts," "Inventory" and
"Equipment," as defined in Section 1 of this Security Agreement, and the
agreements with Custodial Agents listed in Schedule 5.1(v) to the Note Agreement
is complete and accurate in all material respects as of the date of this
Security Agreement.

         4.2.     The execution, delivery and performance hereof and of any
other document executed and delivered by each Debtor in connection with the
Obligations are within such Debtor's corporate powers, have been duly authorized
by such Debtor, and comply in all material respects with any applicable law,
rule or regulation and the terms of such Debtor's current Articles of
Incorporation, Bylaws or other applicable documents, instruments or agreements
relating to such Debtor's corporate organization or governance or material to
the conduct of such Debtor's business, or of any indenture or other material
agreement or undertaking to which such Debtor is a party or by which such Debtor
is bound, except as permitted under the Note Agreement.

         4.3.     There is no litigation or proceeding pending or, to the best
knowledge of any Debtor, threatened against such Debtor or any of its assets
which, if determined adversely to such Debtor, reasonably may be expected to
result in a Material Adverse Effect.

         4.4      At the time the Collateral becomes subject to Agent's security
interest: (a) each Debtor shall be the sole owner of and fully authorized to
sell, transfer, pledge and/or grant a first security interest in each and every
item of the Collateral, which interests shall be prior to any other already
existing secured interests in favor of any other creditor; (b) all documents,
instruments and agreements shall be true and correct and in all respects what
they purport to be; (c) all signatures and endorsements that appear thereon
shall be genuine and all signatories and endorsers shall have full capacity to
contract; and (d) none of the transactions underlying or giving rise to the
Collateral shall violate in any material respect any applicable state or federal
laws or regulations, and all documents or instruments relating to the Collateral
shall be legally sufficient under such laws or regulations and shall be legally
enforceable in accordance with their terms (subject to exceptions for insolvency
laws and equitable principles).

                                       11

<PAGE>

         4.5.     Each Debtor shall from time to time take such actions as Agent
may from time to time reasonably request in writing by way of obtaining,
executing, delivering and/or filing financing statements, landlord's or
mortgagee's waivers, and other notices and amendments and renewals thereof, and
each Debtor shall take any and all steps and observe such formalities as may be
necessary or as Agent may reasonably request, in order to create and maintain a
valid first lien upon, pledge of, or paramount security interest in the
Collateral, except with respect to any Permitted Lien. All charges, expenses and
fees which Agent may incur in filing any of the foregoing, and any local taxes
relating thereto, shall be charged to the applicable Debtor's account and be
deemed a part of the Obligations secured hereby, or, at Agent's option, shall be
paid to Agent immediately upon demand. Each Debtor hereby authorizes Agent to
(a) file one or more UCC-1 financing statements indicating the Collateral as
"all assets of Debtor and proceeds thereof" (or using substantially similar
words) in such jurisdictions as Agent shall deem necessary or appropriate and
(b) file the original or a photocopy of this Security Agreement as a financing
statement.

         4.6.     Until termination and release of the security interests
granted pursuant to this Security Agreement, the security interest in the
Collateral hereby granted to Agent shall continue in full force and effect.
Until such time, no Debtor shall, without Agent's prior written consent, pledge,
sell, assign, transfer, create a security interest in, or encumber or allow to
be encumbered in any way, any part of the Collateral to anyone other than Agent
except for the Permitted Liens. Each Debtor hereby agrees to defend Agent's
interest in the Collateral against any and all persons whatsoever.

         4.7.     Each Debtor shall execute and deliver, or cause to be executed
and delivered, to Agent, from time to time, upon Agent's reasonable request (in
writing), such supplemental agreements, statements, assignments, and transfers,
or instructions or documents relating to the Collateral, and such other
instruments as Agent so request, in order that the full intent of this Security
Agreement may be carried into effect.

         4.8.     All balance sheets, earnings statements and other financial
data which have been or may hereafter be furnished to Agent did and do and shall
fairly represent the applicable Debtor's financial condition as of the dates
thereof and/or the results of such Debtor's operations for the period for which
the same are furnished and have been and shall be prepared in accordance with
GAAP, except that interim financial statements will not contain footnotes and
will be subject to year-end adjustments, and any material adverse change in such
financial condition or such Debtor's operations since the date of each such
report shall be disclosed at the time of delivery thereof. Each Debtor shall
continue to furnish whatever information or reports concerning the Collateral
and each Debtor's financial condition that Agent may reasonably request during
the term of this Security Agreement. All other information, reports and other
papers and data furnished to Agent is and shall be, at the time the same are so
furnished, accurate and correct in all material respects and complete insofar as
completeness may be necessary to give Agent a true and accurate knowledge of the
subject matter; provided, however, that any information, reports and other
papers or data furnished by any Debtor to Agent as (a) budgets or forecasts
shall be only what such Debtor believes to be reasonable under the
circumstances, and (b) drafts of documents shall be subject to completion by any
subsequent drafts and the final

                                       12

<PAGE>

version of such documents. Agent acknowledges that only the annual financial
statements of Borrower will be audited.

         4.9.     To the best knowledge of each Debtor, (a) each of the
Receivables is and shall be a good and valid account representing the amount of
the undisputed bona fide indebtedness incurred by the customer therein named,
for a fixed sum as set forth in the invoice relating thereto with respect to an
absolute sale and delivery of goods by any Debtor, or work, labor and/or
services rendered by any Debtor, and (b) none of the Receivables is or shall be
subject to any defense, setoff, counterclaim, discount or allowance, except as
permitted by Section 3.14 or as disclosed in writing by any Debtor to Agent.

         4.10.    Each Debtor shall give Agent written notice of each office at
which any Debtor keeps its records pertaining to accounts, contract rights,
payment intangibles, and general intangibles and the location of any Debtor's
chief executive office. Until and except as such notice is given, all such
records shall be kept at Borrower's address as it appears in Section 10.6 of the
Note Agreement. Each Debtor shall promptly (but in any event no later than five
(5) days after any Debtor first has knowledge of any event described in clause
(c) and (d) below in this Section 4.10) give Agent written notice of: (a) any
change in the location of such records, its chief executive office, or its
corporate name; (b) any additional trade name under which any Debtor transacts
business; (c) the filing of any liens or judgments against the assets of any
Debtor; and (d) any litigation or proceedings which if determined adversely to
any Debtor reasonably may be expected to have a Material Adverse Effect.

         4.11.    (a) Except as otherwise permitted under Section 7.2(d) of the
Note Agreement, each Debtor and Agent have delivered or will be delivering
letters of instruction to, and have obtained or will be obtaining agreements
from, the Depositories with respect to the Deposit Accounts. Such letters of
instruction shall be substantially similar to Exhibits F-1 or F-2, except for
changes approved by Agent; provided such changes approved by Agent do not (i)
prejudice the Lenders, or Travelers to a greater extent than Agent or (ii)
substantially adversely affect the security interests and liens granted to the
Bank Agent pursuant to the Credit Documents. To enable the Depositories'
continuing compliance with all such instructions or agreements, each Debtor
agrees that all cash, checks and other Instruments received in its operations
shall be deposited initially by or for the account of such Debtor only in those
Deposit Accounts designated as either a "Currency Account" (with respect to
cash) or a "Deposit Account" (with respect to checks and other Instruments) in
each such letter of instruction, except for cash retained at or delivered to the
premises at which any Debtor conducts its business or funds transfers between
Deposit Accounts, in either case as permitted by such instructions or
agreements.

                  (b)      No deposit, account, certificate of deposit, check,
note, draft or other Instrument has been or shall be received by any Debtor
unless the same is pledged and assigned to Agent, and each check, draft and all
other Instruments are or shall be (i) duly endorsed by such Debtor "for deposit
only" to a Deposit Account (or an equivalent endorsement), (ii) delivered to
Agent, a Custodial Agent or another designated agent, bailee or trustee for
Agent no later than the next Business Day following receipt by such Debtor and
(iii) deposited into a

                                       13

<PAGE>

Deposit Account no later than the next Business Day following the date such
Debtor receives the same; provided that, for purposes of subclauses (ii) and
(iii) each Debtor need not so deliver or deposit checks made payable to such
Debtor (including post-dated checks) until the aggregate amount thereof received
by such Debtor from time to time shall exceed Fifty Thousand and 00/100 Dollars
($50,000.00).

                  (c)      Except for cash in Centers and cash in possession of
Custodial Agents, all cash received by each Debtor has been and shall, unless
otherwise approved by Agent in writing or as Debtor is otherwise directed in
accordance with the Intercreditor Agreement, continue to be deposited in one or
more Deposit Accounts. Except as otherwise expressly permitted herein, in the
Intercreditor Agreement or in Section 7.2(d) of the Note Agreement, cash,
checks, drafts and other Instruments used or arising in connection with business
operations at the Centers shall be delivered, picked up and otherwise moved or
transported only by a Custodial Agent that has executed a Letter Agreement
substantially similar to Exhibit G to the Note Agreement.

                  (d)      Each Debtor is and shall remain in full compliance
with all agency and trust agreements with Custodial Agents and Depositories, and
all representations, warranties and certifications of such Debtor, and, to the
best knowledge of each Debtor, all representations, warranties and
certifications of the Custodial Agent or Depository, as applicable, contained
therein are and shall continue to be true and correct in all material respects,
and, to the best knowledge and belief of each Debtor, all Custodial Agents and
Depositories are and shall continue to be in full compliance therewith.

         4.12.    With respect to any Deposit Account for which a Depository
shall not agree to provide a copy of the periodic bank statement therefor
directly to Agent, each Debtor agrees to provide a copy of such statement
(exclusive of all detail relating to items thereon) to Agent by facsimile
transmission no later than the next Business Day following the date such
statement is received by such Debtor. Each Debtor shall promptly provide a copy
of any such detail to Agent by mail or courier for delivery on the next Business
Day following the facsimile transmission of the statement without detail.

         4.13.    Schedule 1 to the Intercreditor Agreement, Schedule 5.1(v) to
the Note Agreement and each of the Schedules to this Security Agreement, each as
amended and revised pursuant to the Certificate of Update delivered pursuant to
the Note Agreement, are complete and accurate in all material respects.

         4.14.    No Debtor shall grant any liens or security interests in any
of its property to any Person except for Permitted Liens.

         4.15     Between the date which is 54 months after the date hereof and
the date which is 56 months after the date hereof (and every 60 months
thereafter) the Debtors shall provide a legal opinion issued by its outside
counsel addressed to Agent confirming the perfection of the liens and security
interests granted hereunder and specifying any action required to be taken
between the date of such opinion and the date of such next opinion to maintain
the perfection of Agent's liens and security interests.

                                       14

<PAGE>

         5.       AGENT'S RIGHTS AND REMEDIES.

         5.1.     Upon the occurrence and continuance of an Event of Default:

                  (a)      Agent may at any time, without further notice to the
Debtors, notify the Obligors and other Persons whose obligations have been
assigned, or in which a security interest has been granted hereunder, that such
obligations have been assigned, or a security interest therein has been granted,
to Agent and/or that payments thereunder or in respect thereof shall be made
directly to Agent or to Agent's designee. If requested by Agent, each Debtor
will so notify the Obligors and other Persons whose obligations to any Debtor
have been assigned or in which a security interest has been granted hereunder.
Agent may in its own name or in the name of others (including, without
limitation, any Debtor) communicate with such Obligors and other Persons,
enforce payment or collect any of the Collateral by legal proceedings or
otherwise, and adjust, settle or compromise the amount or payment thereof;

                  (b)      All payments received by the Debtors under or in
connection with any of the Collateral shall be held by such Debtor in trust for
Agent, shall be segregated from other funds of such Debtor and shall, forthwith
upon receipt by such Debtor, be turned over to Agent; and

                  (c)      Any and all such payments so received by the Agent
(whether from the Debtors or otherwise) shall, subject to the terms of the
Intercreditor Agreement, be immediately applied to the Obligations in the order
specified in Article 3 of the Note Agreement.

         5.2.     Upon the occurrence and continuance of an Event of Default,
Agent may exercise in respect of the Collateral, in addition to all other rights
and remedies provided for herein, the Intercreditor Agreement or otherwise
available to it, all the rights and remedies of a secured party on default under
the Uniform Commercial Code (whether or not the Uniform Commercial Code applies
to the affected Collateral), and under all other applicable law as in effect in
any relevant jurisdiction. In addition, Agent may also:

                  (a)      require each Debtor to, and each Debtor hereby agrees
that it will at its expense and upon request of Agent, assemble all or any part
of the Collateral as directed by Agent and make such Collateral available to
Agent at a place to be designated by Agent, which place shall be reasonably
convenient to Agent and such Debtor, whether at the premises of such Debtor or
otherwise;

                  (b)      enter, with or without process of law and without
breach of the peace, any premises where any of the Collateral or the books and
records of any Debtor related thereto are or may be located and, without charge
or liability to Agent, seize and remove such Collateral and such books and
records from such premises or remain upon such premises and use the same for the
purpose of enforcing any and all rights and remedies of Agent under this
Security Agreement; and

                  (c)      sell, lease, assign, grant an option or options to
purchase or otherwise dispose of all or any part of the Collateral in one or
more parcels, at public or private sale or

                                       15

<PAGE>

sales, at any exchange, broker's board or at any of Agent's offices or
elsewhere, at such prices as Agent may deem best, for cash, on credit or for
future delivery, and upon such other terms as Agent may deem commercially
reasonable; provided, however, that no Debtor shall credited with the net
proceeds of any such credit sale, future delivery or lease of the Collateral
until the cash proceeds thereof are actually received by Agent. Each Debtor
agrees that, to the extent notice of sale shall be required by law, at least ten
(10) days' notice to such Debtor of the time and place of any public sale, or
the time after which any private sale is to be made, shall constitute reasonable
notification. No notification required by law need be given to any Debtor if
such Debtor has signed, a statement renouncing any right to notification of sale
or other intended disposition. Agent shall not be obligated to make any sale of
Collateral regardless of notice of sale having been given. Agent may adjourn any
public or private sale from time to time by announcement at the time and place
fixed therefor, and such sale may, without further notice, be made at the time
and place to which it was so adjourned. Agent shall have the right upon any such
public sale or sales and, to the extent permitted by law, upon any such private
sale or sales, to purchase the whole or any part of the Collateral so sold, free
of any right or equity of redemption in any Debtor which right or equity is
hereby expressly waived and released. In the event of a sale of Collateral, or
any part thereof, to Agent following the occurrence of an Event of Default,
Agent shall not deduct or offset from any part of the purchase price to be paid
therefor any indebtedness owing to it by the Debtors. Any and all Proceeds
received by Agent with respect to any sale of, collection from or other
realization upon all or any part of the Collateral whether consisting of monies,
checks, notes, drafts, bills of exchange, money orders or commercial paper of
any kind whatsoever, shall, subject to the terms of the Intercreditor Agreement,
be immediately applied to the Obligations in the order specified in Article 3 of
the Note Agreement. Agent is hereby granted a license or other right to use,
without charge, each Debtor's labels, copyrights, patents, rights of use of any
name, trade names, trademarks and advertising matter, or any property of a
similar nature, in advertising for sale and selling any Collateral.

         5.3.     To the extent permitted by applicable law, each Debtor waives
all claims, damages and demands against Agent arising out of the repossession,
retention or sale of the Collateral, or any part or parts thereof, except any
such claims, damages and awards arising out of the gross negligence or willful
misconduct of Agent, as the case may be. In no event, however, does any Debtor
waive any obligations of Agent under applicable law to act in a commercially
reasonable manner.

         5.4.     Each Debtor recognizes that in the event any Debtor fails to
perform, observe or discharge any of its obligations or liabilities under this
Security Agreement, no remedy at law will provide adequate relief to Agent and
Agent shall be entitled to temporary and permanent injunctive relief in any such
case without the necessity of proving actual damages.

         5.5.     The rights and remedies provided under this Security Agreement
are cumulative and may be exercised singly or concurrently, and are not
exclusive of any rights and remedies provided by law or equity.

         5.6.     All rights of action and rights to assert claims upon or under
this Security Agreement and the other Purchase Documents may be enforced by
Agent without the possession

                                       16

<PAGE>

of any promissory note or other instrument, document or agreement evidencing the
Obligations or the production thereof in any trial or other proceeding relative
thereto, and any such suit or proceeding instituted by the Agent shall be
brought in its name on behalf of the Purchasers and any recovery of judgment
shall be held as part of the Collateral.

         6.       WAIVERS.

         6.1.     Each Debtor hereby waives notice of nonpayment of any of the
Obligations, demand, presentment, protest and notice thereof with respect to any
and all Instruments, notice of acceptance thereof, notice of loans or advances
made, credit extended, Collateral received or delivered, or any other action
taken in reliance hereon, and all other demands and notices of any description,
except such as are expressly provided for herein.

         6.2.     No failure, omission or delay on the part of Agent in
exercising any right, remedy, option or power under this Security Agreement, or
in giving or insisting upon strict performance by any Debtor hereunder or in
giving notice hereunder shall operate as a waiver of the same or any other power
or right, and no single or partial exercise of any such power or right shall
preclude any other or further exercise thereof or the exercise of any other such
power or right. Agent, notwithstanding any such failure, shall have the right
thereafter to insist upon the strict performance by each Debtor of any and all
of the terms and provisions of this Security Agreement to be performed by such
Debtor. The collection and application of proceeds, the entering and taking
possession of the Collateral, and the exercise of the rights of Agent contained
in the Security Documents, including, without limitation, this Security
Agreement, shall not cure or waive any Event of Default. No waiver by Agent of
any breach or default of or by any party hereunder shall be deemed to alter or
affect Agent's rights under this Security Agreement with respect to any prior or
subsequent default.

         6.3.     Each Debtor waives and releases the benefit of all valuation,
appraisal, redemption and exemption laws to the extent permitted by applicable
law. In the event Agent seeks to take possession of any of the Collateral by
replevin or other court process, each Debtor hereby irrevocably waives (a) any
bonds, and any surety or security relating thereto required by any statute,
court rule or otherwise as an incident to such possession and (b) any demand for
possession of the Collateral prior to the commencement of any suit or action to
recover possession thereof.

         6.4      Each Debtor, to the extent it may lawfully do so, on behalf of
itself and all who may claim through or under it, including, without limitation,
any and all subsequent creditors, vendees, assignees and lienors, expressly
waives and releases any, every and all rights to demand or to have any
marshaling of the Collateral upon any sale, whether made under any power of sale
granted under this Security Agreement, or pursuant to judicial proceedings or
upon any foreclosure or any enforcement of this Security Agreement or the other
Purchase Documents and consents and agrees that all the Collateral may at any
such sale be offered and sold as an entirety. In no event, however, does any
Debtor waive any obligations of the Agent or the Purchasers under applicable law
to dispose of the Collateral in a commercially reasonable manner.

                                       17

<PAGE>

         7.       MISCELLANEOUS.

         7.1.     THIS SECURITY AGREEMENT SHALL BE GOVERNED, CONSTRUED AND
INTERPRETED IN ALL RESPECTS IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.
Notwithstanding the general limitations set forth in Section 10.9 of the Note
Agreement, or any applicable provisions of any other Purchase Document, each
Debtor hereby consents and submits to the jurisdiction of any local, state or
federal court located within a jurisdiction in which any of the Collateral shall
be located for purposes of any action related to such Collateral that is
commenced by Agent to enforce or foreclose its security interest hereunder. Each
Debtor warrants and represents that it has appointed CT Corporation or one of
its affiliates as its registered agent in the State of Texas, and covenants with
Agent that such registered agent shall not be changed without written notice to,
and the written consent of, Agent. Each Debtor hereby waives any right it may
have to transfer or change the venue of any litigation brought against it by
Agent in accordance with this Section 7.1.

         7.2.     Neither this Security Agreement nor any portion or provisions
hereof may be changed, modified, amended, waived, supplemented, discharged,
canceled or terminated orally or by any course of dealing, or in any manner
other than by an agreement in writing, signed by the parties hereto.

         7.3.     All notices or other communications hereunder shall be given
in the manner and to the addresses set forth in Section 10.6 of the Note
Agreement, with the address of Borrower serving as the address of each Debtor.

         7.4.     Each Debtor agrees that checks and other Instruments delivered
to Agent in payment or on account of the Obligations constitute conditional
payment only until payment is actually received in immediately payable funds by
Agent, and, subject to the provisions of Article 3 of the Note Agreement, and
similar provisions in any other Purchase Document, each Debtor waives the right
to direct the application of any and all payments at any time or times hereafter
received by Agent on account of the Obligations. Each Debtor agrees that Agent
shall have the continuing exclusive right to apply and reapply any and all such
payments in such manner as Agent may deem advisable, notwithstanding any entry
by Agent upon any of its books and records.

         7.5.     If any part of this Security Agreement is contrary to,
prohibited by, or deemed invalid under applicable laws or regulations, such
provision shall be inapplicable and deemed omitted to the extent so contrary,
prohibited or invalid, but the remainder hereof shall not be invalidated thereby
and shall be given effect so far as possible.

         7.6.     The captions in this Security Agreement are intended for
convenience only and do not constitute and shall not be interpreted as part of
this Security Agreement.

         7.7.     To the extent that any of Agent receive payments on the
Obligations or receive Proceeds of Collateral which are subsequently
invalidated, declared to be fraudulent or preferential, or are required to be
repaid to a trustee, receiver or any other Person under the

                                       18

<PAGE>

Bankruptcy Code or under state, federal or common law, then, to the extent the
payments or Proceeds are so repaid, the Obligations or part thereof which was
intended to be satisfied shall be revived and will continue to be in full force
and effect as if those payments or Proceeds had never been received by Agent.

         7.8.     This Security Agreement may be executed and delivered in
counterparts, all of which taken together shall constitute this Security
Agreement. Delivery of an executed signature page by any of the parties by
facsimile transmission shall be deemed execution and delivery of this Security
Agreement for all purposes hereof. Notwithstanding execution and delivery of
this Security Agreement by facsimile transmission as provided above, the parties
shall undertake to provide each other with original executed copies of this
Security Agreement within two (2) Business Days following the date hereof. In
making proof of this Security Agreement, it shall not be necessary to produce or
account for more than one such counterpart.

         7.9.     In the event of any conflict between the terms, conditions,
covenants, or agreements contained herein and in the Intercreditor Agreement,
the terms, conditions, covenants and agreements contained in the Intercreditor
Agreement shall control. Notwithstanding anything to the contrary contained
herein, (a) each exercise of rights or remedies in respect of the Collateral
hereunder by Agent shall be subject to, and shall only be made in accordance
with, the Intercreditor Agreement and (b) any and all Proceeds received by Agent
with respect to any sale of, collection from or other realization upon all or
any part of the Collateral whether consisting of monies, checks, notes, drafts,
bills of exchange, money orders or commercial paper of any kind whatsoever,
shall, subject to the terms, of the Intercreditor Agreement, be immediately
applied to the Obligations in the order specified in Article 3 of the Note
Agreement.

         7.10.    WAIVER OF JURY TRIAL, ETC.

         (a)      EACH PARTY HERETO HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY OF
ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS SECURITY
AGREEMENT OR ANY OF THE OTHER PURCHASE DOCUMENTS OR IN ANY WAY CONNECTED WITH OR
RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS
SECURITY AGREEMENT OR ANY OF THE OTHER PURCHASE DOCUMENTS OR THE TRANSACTIONS
RELATED HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. EACH PARTY HERETO
MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS SECURITY AGREEMENT AS WRITTEN
EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO
TRIAL BY JURY.

         (b)      EACH PARTY HERETO (I) CERTIFIES THAT NEITHER ANY
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO
ENTER INTO THIS SECURITY

                                       19

<PAGE>

AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS HEREIN.

         7.11.    SUBMISSION TO JURISDICTION.

         (a)      ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS SECURITY
AGREEMENT MAY BE BROUGHT IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN
DISTRICT OF TEXAS, DALLAS DIVISION AND, BY EXECUTION AND DELIVERY OF THIS
SECURITY AGREEMENT, EACH DEBTOR HEREBY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE
AFORESAID COURT.

         (b)      EACH DEBTOR HEREBY IRREVOCABLY WAIVES, IN CONNECTION WITH ANY
SUCH ACTION OR PROCEEDING, ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY
OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON
CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH
ACTION OR PROCEEDING IN SUCH JURISDICTION.

         (c)      EACH DEBTOR HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF
PROCESS OF THE AFOREMENTIONED COURT IN ANY SUCH ACTION OR PROCEEDING BY THE
MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO
IT AT ITS ADDRESS AT ACE CASH EXPRESS, INC., 1231 GREENWAY DRIVE, SUITE 800,
IRVING, TEXAS 75038, ATTENTION: CHIEF FINANCIAL OFFICER, OR AT SUCH OTHER
ADDRESS AS SHALL BE DESIGNATED BY IT IN A WRITTEN NOTICE TO BANK AGENT.

         (d)      NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY HOLDER OF ANY OF
THE OBLIGATIONS TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO
COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY DEBTOR IN ANY OTHER
JURISDICTION.

         7.12.    Any Person that becomes a Subsidiary of Borrower subsequent to
the date hereof and that was not a "Debtor" under this Security Agreement at the
time of initial execution hereof shall become a "Debtor" hereunder by executing
and delivering to Agent an Additional Subsidiaries Supplement in the form
attached hereto as Exhibit A. Any such Subsidiary shall thereafter be deemed a
"Debtor" for all purposes under this Security Agreement.

[Remainder of the Page Intentionally Left Blank]

                                       20

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Security
Agreement or caused this Security Agreement to be executed and delivered by
their duly authorized officers as of the date first set forth above.

                                        CHECK EXPRESS, INC.
                                        Q. C. & G. FINANCIAL, INC.
                                        PUBLIC CURRENCY, INC.
                                        CHECK EXPRESS FLORIDA, INC.
                                        CHECK EXPRESS FINANCE, INC.
                                        CHECK-X-CHANGE CORPORATION
                                        CHECK EXPRESS SOUTH CAROLINA, INC.
                                        CHECK EXPRESS USA, INC.

                                        By:_____________________________________

                                        Name:___________________________________

                                        Title:__________________________________

                                       21

<PAGE>

                                   Schedule 1

                                   Trade names

<PAGE>

                                   Schedule 2

                        Centers and Collateral Locations

<PAGE>

                                    EXHIBIT A

                       ADDITIONAL SUBSIDIARIES SUPPLEMENT

         THIS ADDITIONAL SUBSIDIARIES SUPPLEMENT is made by the undersigned as
of [_________], to the Assignment of Deposit Accounts and Security Agreement
dated as of March 31, 2003 (as amended, supplemented and otherwise modified, the
"Security Agreement"), made by certain Subsidiaries of ACE Cash Express, Inc., a
Texas corporation ("Borrower"), in favor of American Capital Financial Services,
Inc. a Delaware corporation ("ACFS"), as administrative agent for the Purchasers
(as defined in the Security Agreement), from time to time parties hereto
(collectively, the "Debtors").

                                   WITNESSETH:

         WHEREAS, the Security Agreement provides that any Subsidiary of
Borrower, although not a Debtor thereunder at the time of the initial execution
thereof, may become a Debtor under the Security Agreement upon the delivery to
the Agent of a supplement in substantially the form of this Additional
Subsidiaries Supplement; and

         WHEREAS, the undersigned was not a Subsidiary of Borrower on the date
of the Security Agreement and, therefore, was not a party to the Security
Agreement but now desires to become a Debtor thereunder;

         NOW, THEREFORE, the undersigned hereby agrees as follows:

         The undersigned agrees to be bound by all of the provisions of the
Security Agreement applicable to a Debtor thereunder and agrees that it shall,
on the date this Additional Subsidiaries Supplement is accepted by Agent, become
a Debtor, for all purposes of the Security Agreement to the same extent as if
originally a party thereto with the representations and warranties contained
therein being deemed to be made by the undersigned as of the date hereof.

         Unless otherwise defined herein, capitalized terms which are defined in
the Security Agreement are used herein as so defined.

         IN WITNESS WHEREOF, the undersigned has caused this Additional
Subsidiaries Supplement to be executed and delivered by a duly authorized
officer on the date first above written.

                                        [NAME OF SUBSIDIARY]

                                        By:_____________________________________

                                        Name:___________________________________

                                        Title:__________________________________

<PAGE>

THIS STOCK PLEDGE AGREEMENT IS SUBORDINATE (INCLUDING WITH RESPECT TO LIEN
PRIORITY) IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN
INTERCREDITOR AGREEMENT, DATED AS OF THE DATE HEREOF, BY AND AMONG PLEDGOR,
AGENT AND CERTAIN OTHER CREDITORS OF PLEDGOR (AS AMENDED, MODIFIED OR RESTATED
FROM TIME TO TIME, THE "INTERCREDITOR AGREEMENT") TO THE INDEBTEDNESS AND OTHER
LIABILITIES OWED BY PLEDGOR UNDER AND PURSUANT TO THAT CERTAIN CREDIT AGREEMENT,
DATED AS OF THE DATE HEREOF, BY AND AMONG PLEDGOR, THE LENDERS FROM TIME TO TIME
PARTY THERETO, WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION, AS ADMINISTRATIVE
AGENT FOR SUCH LENDERS (THE "BANK AGENT"), AND JPMORGAN CHASE BANK, AS AGENT FOR
SUCH LENDERS, AS THE SAME MAY BE AMENDED OR MODIFIED FROM TIME TO TIME (THE
"CREDIT AGREEMENT") AND EACH RELATED "CREDIT DOCUMENT" (AS SUCH TERM IS DEFINED
THEREIN).

                             STOCK PLEDGE AGREEMENT

         THIS STOCK PLEDGE AGREEMENT (this "Agreement") is executed as of the
day of March 31, 2003 by ACE CASH EXPRESS, INC., a Texas corporation
("Pledgor"), in favor of AMERICAN CAPITAL FINANCIAL SERVICES, INC., a Delaware
corporation ("ACFS"), as administrative agent ("ACFS" in such capacity, "Agent")
for the purchasers (the "Purchasers") from time to time a party to the Note
Agreement (as such term is defined below).

                                    RECITALS:

         WHEREAS, Pledgor, Agent and Purchasers have entered into that certain
Note Purchase Agreement of even date herewith (as amended, modified, increased,
supplemented and/or restated from time to time the "Note Agreement"); and

         WHEREAS, it is a condition precedent to the extension of credit under
the Note Agreement and to Purchasers' obligations under the Note Agreement, that
the Pledgor, Agent and certain other creditors of the Pledgor enter into that
certain Intercreditor Agreement of even date herewith (as amended, modified or
restated from time to time, the "Intercreditor Agreement"), pursuant to which,
among other things, Agent and the other parties thereto shall establish their
relative rights and respective lien priorities in and to the Collateral (as
hereafter defined).

         NOW, THEREFORE, in consideration of these premises and in order to
induce the Purchasers to extend the credit represented by the Obligations, and
for other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties hereto hereby agree as follows:

                                   AGREEMENTS:

                                        1

<PAGE>

         1.       Defined Terms. Unless otherwise defined herein, terms defined
in the Note Agreement shall have such defined meanings when used herein. For
purposes of this Agreement, the following terms shall have the respective
meanings assigned thereto below:

         "Obligations" means

         (a)      all indebtedness, obligations and liabilities, including all
costs, expenses and fees, now or hereafter owing by Pledgor to Agent or
Purchasers under the Note Agreement, the Notes, this Agreement or any other
Purchase Document;

         (b)      any and all renewals, extensions, modifications and increases
of such Obligations; and

         (c)      all costs, expenses and fees, including but not limited to all
court costs and reasonable attorneys' fees, arising in connection with the
collection of any or all amounts, indebtedness, obligations and liabilities
described in items (a) through (b) above, including all costs, expenses and fees
arising in connection with the enforcement of this Agreement.

         2.       Pledge. The Pledgor hereby pledges, assigns, hypothecates,
transfers and delivers (subject to Section 26 hereof) to Agent, and hereby
grants to Agent, a lien on, a security interest in and control (as defined in
the Code (as defined in Section 10 hereof)) of: (a) all investment property (as
defined in the Code) now owned or hereafter acquired by Pledgor (other than its
membership interests in Ace Funding, LLC, a Delaware limited liability company)
including but not limited to the pledged stock described on Schedule I hereto
(the "Initial Pledged Stock") issued by the Persons described on Schedule I
(each, an "Issuer"), (b) all shares of stock, common or preferred, certificate
or uncertificated securities (as defined in the Code), options, interests,
participations, and other equivalents, warrants, convertible debentures and all
agreements, instruments and documents convertible, in whole or part, into any
one or more of the foregoing (the property described in the foregoing clauses
(a) and (b) is referred to herein as the "Stock") of each Issuer or any other
judicial person (each, an "Additional Issuer") which Pledgor shall, from time to
time, become entitled to receive or shall receive as set forth in Section 3
hereof (together with any Stock options or rights received pursuant to Section 3
hereof, the "Additional Pledged Stock"; the Additional Pledged Stock and the
Initial Pledged Stock being sometimes hereinafter referred to as the "Pledged
Stock"), (c) all other Collateral (as defined in Section 4 hereto as may be
pledged to Agent, at any time and from time to time hereunder, and (d) all
Proceeds (as defined in the Intercreditor Agreement) thereof, together with
appropriate undated stock powers duly executed in blank, as collateral security
for the Obligations.

         3.       Stock Dividends, Distributions, etc. If, while this Agreement
is in effect, the Pledgor shall become entitled to receive or shall receive any
Stock (including, without limitation, any Stock dividend or a distribution in
connection with any reclassification, increase or reduction of capital, or
issued in connection with any reorganization), option or rights, whether as an

                                        2

<PAGE>

addition to, in substitution of, or in exchange for any shares of any Pledged
Stock, or otherwise, the Pledgor agrees (a) to cause the same to be
certificated, and (b) to accept the same as Agent's agent and to hold the same
in trust on behalf of and for the benefit of Agent segregated from the other
assets of the Pledgor and to deliver (subject to Section 26 hereof) the same
forthwith to Agent, in the exact form received, with the endorsement of the
Pledgor, when necessary and/or appropriate, to execute undated stock powers,
duly executed in blank, to be held by Agent, subject to the terms hereof, as
additional collateral security for the Obligations, and such other documents as
Agent shall reasonably request in order to perfect Agent's security interest
therein and grant Agent control thereof. Any sums paid upon or in respect of the
Pledged Stock upon the liquidation or dissolution of an Issuer or any Additional
Issuer shall be paid over to Agent, to be held by it in trust as additional
collateral security for the Obligations; and in case any distribution of capital
shall be made on or in respect of the Pledged Stock or any property shall be
distributed upon or with respect to the Pledged Stock pursuant to the
recapitalization or reclassification of the capital of an Issuer or pursuant to
the reorganization thereof, the property so distributed shall be delivered
(subject to Section 26 hereof) to Agent, to be held by it as additional
collateral security for the Obligations. All sums of money and property so paid
or distributed in respect of the Pledged Stock which are received by the Pledgor
shall, until paid or delivered to Agent, be held by the Pledgor in trust,
segregated from the other assets of the Pledgor, as additional collateral
security for the Obligations.

         4.       Collateral. The Pledged Stock and all other property at any
time and from time to time pledged to Agent hereunder (whether described in
Schedule I hereof or not) and all income therefrom and proceeds thereof, are
herein collectively sometimes called the "Collateral".

         5.       Record Ownership of Pledged Stock. Whether or not an Event of
Default has occurred and is continuing, Agent at any time may have the Pledged
Stock registered in its name, or in the name of its nominee or nominees, as
pledgee, and, as to any Pledged Stock so registered, Agent shall execute and
deliver (or cause to be executed and delivered) to Pledgor all such proxies,
powers of attorney, entitlement orders, dividend coupons or orders, and other
documents as Pledgor may reasonably request for the purpose of enabling Pledgor
to exercise the voting rights and powers which it is entitled to exercise under
this Agreement and to receive the dividends and other payments in respect of the
Pledged Stock which it is authorized to receive and retain under this Agreement
and the Purchase Documents.

         6.       Voting of Pledged Stock. So long as no Event of Default shall
have occurred and be continuing, Pledgor shall be entitled to exercise all
voting rights pertaining to the Pledged Stock; provided, however, that no vote
shall be cast or consent, waiver or ratification given or action taken which
would impair the Collateral or violate any provision of this Agreement or the
Purchase Documents, including, without limitation, any act which would increase
the authorized issued or outstanding shares of capital Stock of an Issuer or any
Additional Issuer. Upon the occurrence and during the continuance of an Event of
Default, the right to vote the Pledged Stock and all other corporate rights
pertaining to the Pledged Stock shall be vested exclusively in Agent, including
any and all rights of conversion, exchange, subscription or any other rights,

                                        3

<PAGE>

privileges or options pertaining to any shares of the Pledged Stock as if Agent
were the absolute owner thereof, including, without limitation, the right to
exchange at its discretion any and all of the Pledged Stock upon the merger,
consolidation, reorganization, recapitalization or other readjustment of an
Issuer or any Additional Issuer or upon the exercise by an Issuer or any
Additional Issuer or Agent of any right, privilege or option pertaining to any
shares of the Pledged Stock, and in connection therewith, to deposit and deliver
any and all of the Pledged Stock with any committee, depository, transfer agent,
registrar or other designated agency upon such terms and conditions as it may
determine, all without liability except to account for property actually
received by it, but Agent shall have no duty to exercise any of the aforesaid
rights, privileges or options or be responsible for any failure to do so or
delay in so doing. TO THIS END, PLEDGOR HEREBY IRREVOCABLY CONSTITUTES AND
APPOINTS AGENT THE PROXY AND ATTORNEY-IN-FACT OF PLEDGOR, WITH FULL POWER OF
SUBSTITUTION, TO VOTE, AND TO ACT WITH RESPECT TO, THE PLEDGED STOCK STANDING IN
THE NAME OF PLEDGOR OR WITH RESPECT TO WHICH PLEDGOR IS ENTITLED TO VOTE AND
ACT, SUBJECT TO THE UNDERSTANDING THAT SUCH PROXY MAY NOT BE EXERCISED UNLESS AN
EVENT OF DEFAULT HAS OCCURRED AND IS CONTINUING, IN EACH CASE PURSUANT TO NOTE
AGREEMENT. THE PROXY HEREIN GRANTED IS COUPLED WITH AN INTEREST, IS IRREVOCABLE,
AND SHALL CONTINUE UNTIL ALL COMMITMENTS OF ANY PURCHASER TO EXTEND CREDIT TO
PLEDGOR HAVE BEEN TERMINATED AND THE OBLIGATIONS HAVE BEEN PAID AND PERFORMED IN
FULL.

         7.       Limitations on Agent's Obligations. Agent shall not be liable
for failure to collect or realize upon the Obligations or any collateral
security or guarantee therefor, or any part thereof, or for any delay in so
doing nor shall Agent be under any obligation to take any action whatsoever with
regard thereto.

         8.       Agent's Appointment as Attorney-in-Fact. (a) In addition to,
and without limiting the scope of any other provision in this Agreement, the
Pledgor hereby irrevocably constitutes and appoints Agent and any officer or
agent thereof, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power and authority in the place and
stead of the Pledgor and in the name of the Pledgor or in its own name, from
time to time in Agent's discretion, for the purpose of carrying out the actions
and to execute any and all documents and instruments which may be necessary or
desirable to accomplish the purposes of this Agreement and, without limiting the
generality of the foregoing, hereby gives Agent, the power and right, on behalf
of the Pledgor, without notice to or assent by the Pledgor upon the occurrence
and during the continuance of an Event of Default, but with notice to and assent
by Pledgor prior to the occurrence of an Event of Default, to do the following:
(i) to ask, demand, collect, receive and give acquittances and receipts for any
and all monies due and to become due under the Collateral; (ii) in the name of
the Pledgor or its own name or otherwise, to take possession of and endorse and
collect any checks, drafts, notes, acceptances or other instruments for the
payment of moneys due under the Collateral; (iii) to file any claim or to take
any other action or proceeding in any court of law or equity or otherwise deemed
appropriate by Agent for the purpose of collecting any and all such moneys due
under the Collateral whenever payable; (iv) to pay or discharge taxes, liens,
security interests or other encumbrances levied or placed on or threatened
against the Collateral; (v) to direct any party liable for any payment under the
Collateral to make payment of

                                        4

<PAGE>

any and all moneys due and to become due thereunder directly to Agent, or as
Agent shall direct; (vi) to receive payment of and receipt for any and all
moneys, claims and other amounts due and to become due at any time in respect of
or arising out of any Collateral; (vii) to commence and prosecute any suits,
actions or proceedings at law or in equity in any court of competent
jurisdiction to collect the Collateral or any part thereof and to enforce any
other right in respect of the Collateral; (viii) to defend any suit, action or
proceeding brought against the Pledgor with respect to any Collateral; (ix) to
settle, compromise or adjust any suit, action or proceeding described above and,
in connection therewith, to give such discharges or releases as Agent may deem
appropriate; (x) exercise voting rights attributable to the Pledged Stock
pursuant to Section 6 hereof; and (xi) generally to sell, transfer, pledge, make
any agreement with respect to or otherwise deal with any of the Collateral as
fully and completely as though Agent were the absolute owner thereof for all
purposes, and to do, at Agent's option and the Pledgor's expense, at any time,
or from time to time, all acts and things which Agent deems necessary to
protect, preserve or realize upon the Collateral and Agent's security interest
therein, in order to effect the intent of this Agreement, all as fully and
effectively as the Pledgor might do.

         The Pledgor hereby ratifies all that said attorneys shall lawfully do
or cause to be done.

                  (b)      The powers conferred on Agent, hereunder are solely
to protect its interests in the Collateral and shall not impose any duty upon it
to exercise any such powers. Agent shall be accountable only for amounts that it
actually receives as a result of the exercise of such powers and neither it nor
any of its officers, directors, employees or agents shall be responsible to the
Pledgor for any act or failure to act.

                  (c)      The Pledgor also authorizes Agent, at any time and
from time to time, to execute, in connection with any sale of the Collateral,
any endorsements, assignments or other instruments of conveyance or transfer
with respect to the Collateral.

         9.       Performance by Agent of the Pledgor's Obligations. If the
Pledgor fails to perform or comply with any of its agreements contained herein
and Agent, as provided for by the terms of this Agreement, shall itself perform
or comply, or otherwise cause performance or compliance, with such agreement,
then the expenses of Agent incurred in connection with such performance or
compliance, together with interest thereon to accrue at a rate of interest equal
to the rate of interest set forth in Section 8.2(c) of the Note Agreement from
the date five days after notice from Agent that such expenses are incurred,
shall be payable by the Pledgor to Agent, on demand and shall constitute
Obligations secured hereby.

         10.      Remedies. (a) Upon the occurrence and during the continuance
of an Event of Default and at any time thereafter, Agent may declare all of the
Obligations or any part thereof immediately due and payable and, without demand
of performance or other demand, advertisement or notice of any kind (except the
notice specified below of time and place of public or private sale) to or upon
the Pledgor or any other Person (all and each of which demands, advertisements
and/or notices are hereby expressly waived), may forthwith collect,

                                        5

<PAGE>

receive, appropriate and realize upon the Collateral, or any part thereof,
and/or may forthwith sell, assign, give option or options to purchase, contract
to sell or otherwise dispose of and deliver said Collateral, or any part
thereof, in one or more parcels at public or private sale or sales, at any
exchange, broker's board or at Agent's offices or elsewhere upon such terms and
conditions as it may deem advisable and at such prices as it may deem best, for
cash or on credit or for future delivery without assumption of any credit risk,
with the right to Agent upon any such sale or sales, public or private, to
purchase the whole or any part of said Collateral so sold, free of any right or
equity of redemption in the Pledgor, which right or equity is hereby expressly
waived or released. Agent shall apply the net proceeds of any such collection,
recovery, receipt, appropriation, realization or sale, in accordance with the
terms of the Intercreditor Agreement, the Pledgor remaining liable for any
deficiency remaining unpaid after such application, and only after so applying
such net proceeds and after the payment by Agent of any amount required by any
provision of law, including, without limitation, Section 9.615 of the Uniform
Commercial Code of the State of Texas (as amended, the "Code"), need Agent
account for the surplus, if any, to the Pledgor. The Pledgor agrees that, to the
extent permitted by law, Agent need not give more than ten (10) days' notice of
the time and place of any public sale or of the time after which a private sale
or other intended disposition is to take place and that such notice is
reasonable notification of such matters. No notification need be given to the
Pledgor if it has signed after default a statement renouncing or modifying any
right to notification of sale or other intended disposition. IN ADDITION TO THE
RIGHTS AND REMEDIES GRANTED TO IT IN THIS AGREEMENT AND IN ANY OTHER INSTRUMENT
OR AGREEMENT SECURING, EVIDENCING OR RELATING TO ANY OF THE OBLIGATIONS, PLEDGEE
SHALL HAVE ALL THE RIGHTS AND REMEDIES OF A SECURED PARTY UNDER THE CODE. All
waivers by the Pledgor of rights (including rights to notice) and all rights and
remedies afforded the Pledgor herein, and all other provisions of this
Agreement, are expressly made subject to any applicable mandatory provisions of
law limiting, or imposing conditions (including conditions as to reasonableness)
upon such waivers of the effectiveness thereof or any such rights and remedies.
Any sale or other disposition of the Collateral shall be in compliance with all
provisions of law (including applicable securities laws, and regulations and
applicable provisions of the Code).

                  (b)      The Pledgor recognizes that Agent may be unable to
effect a public sale of any or all the Pledged Stock by reason of certain
prohibitions contained in the Securities Act of 1933 (as amended, the
"Securities Act") and applicable state securities laws, but may be compelled to
resort to one or more private sales thereof to a restricted group of purchasers
who will be obliged to agree, among other things, to acquire such securities for
their own account for investment and not with a view to the distribution or
resale thereof. The Pledgor acknowledges and agrees that any such private sale
may result in prices and other terms less favorable to the seller than if such
sale were a public sale and, notwithstanding such circumstances, agrees that any
such private sale shall be deemed to have been made in a commercially reasonable
manner. Agent shall be under no obligation to delay a sale of any of the Pledged
Stock for the period of time necessary to permit any Issuer or Additional Issuer
of such securities to register such

                                        6

<PAGE>

securities for public sale under the Securities Act, or under applicable state
securities laws, even if such Issuer or Additional Issuer would agree to do so.

                  (c)      The Pledgor further agrees to do or cause to be done
all such other acts and things as may be necessary to make such sale or sales of
any portion of all of the Pledged Stock valid and binding and in compliance with
any and all applicable laws, regulations, orders, writs, injunctions, decrees or
awards of any and all courts, arbitrators or governmental instrumentalities,
domestic or foreign, having jurisdiction over any such sale or sales, all at the
Pledgor's expense. The Pledgor further agrees that a breach of any of the
covenants contained in this Section 10 will cause irreparable injury to Agent,
that Agent has no adequate remedy at law in respect of such breach and, as a
consequence, agrees that each and every covenant contained in this paragraph
shall be specifically enforceable against the Pledgor and the Pledgor hereby
waives and agrees not to assert any defenses against an action for specific
performance of such covenants except for a defense that no default of the
covenants, terms or conditions of the Purchase Documents has occurred. The
Pledgor further acknowledges the impossibility of ascertaining the amount of
damages which would be suffered by Agent by reason of a breach of any such
covenants and, consequently, agrees that, if Agent, shall sue for damages for
breach, Pledgor shall pay, as liquidated damages and not as a penalty, an amount
equal to the value of the Pledged Stock on the date Agent shall demand
compliance with this paragraph.

         11.      Waiver of Subrogation. Notwithstanding anything to the
contrary in this Agreement, unless and until all commitments of any Purchaser to
extend credit to Pledgor have terminated and the Obligations have been
indefeasibly paid and performed in full, the Pledgor hereby irrevocably waives
all rights Pledgor may have at law or in equity (including, without limitation,
any law subrogating the Pledgor to the rights of Agent) to seek contribution,
indemnification, or any other form of reimbursement from any Issuer of
Additional Issuer, any other guarantor or pledgor, or any other Person now or
hereafter primarily or secondarily liable for any obligations of such Issuer or
Additional Issuer to Agent, for any disbursement made by the Pledgor under or in
connection with this Agreement or otherwise. The Pledgor further agrees that, to
the extent that the waiver of any such subrogation, contribution, reimbursement,
indemnity or otherwise is found to be void or voidable for any reason, any such
rights which the Pledgor may have shall be junior and subordinate in all
respects to the rights of Agent against any Issuer or any Additional Issuer.

         12.      Actions by Agent. No action that any Purchaser may take or
omit to take in connection with any of the Purchase Documents, any indebtedness
owing by Pledgor to such Purchaser (including, without limitation, renewals,
extensions, modifications and increases thereof), or any security for the
payment of any indebtedness of Pledgor to any Purchaser, or for the performance
of any obligation or undertaking of Pledgor, nor any course of dealing with
Pledgor or any other Person, shall release the Pledgor from his obligations
hereunder, affect this Agreement in any way, or afford the Pledgor any recourse
against any Purchaser. By way of example, but not in limitation of the
foregoing, the Pledgor hereby expressly agrees that Agent and any Purchaser may,
from time to time, without notice to the Pledgor:

                                        7

<PAGE>

                  (a)      sell, assign, transfer or grant participations in any
Obligation and/or any right held by any Purchaser pursuant to or in connection
with the Purchase Documents;

                  (b)      amend, change, or modify, in whole or in part, any
documents or instruments evidencing, securing or relating to any indebtedness or
undertaking of Pledgor to any Purchaser;

                  (c)      accelerate, change, extend, or renew the time for
payment of the Obligations or any other indebtedness arising under any documents
or instruments evidencing, securing or relating to any indebtedness or
undertaking of Pledgor to any Purchaser;

                  (d)      compromise or settle any amount due or owing, or
claimed to be due or owing, under the Obligations or under any documents or
instruments evidencing, securing or relating to any indebtedness or undertaking
of Pledgor to any Purchaser;

                  (e)      surrender, release, or subordinate any or all
security for any indebtedness or undertaking of Pledgor to Agent or accept
additional or substituted security therefor;

                  (f)      release any guarantor or pledgor of any indebtedness
or undertaking of the Pledgor to Agent, or substitute or add additional
guarantors or pledgors; and

                 (g)      apply collateral securing the Obligations to other
indebtedness also secured by such collateral.

         The provisions of this Agreement shall extend and be applicable to all
renewals, increases, amendments, extensions, modifications of and substitutions
for the Purchase Documents, and all references herein to the Purchase Documents
shall be deemed to include any renewal, increase, extension, amendment or
modification thereof or substitution therefor.

         13.      No Impairment. The obligations, guaranties, undertakings,
covenants, agreements and duties of the Pledgor under this Agreement shall not
be affected or impaired by any of the following, although without notice to or
consent of the Pledgor:

                  (a)      any failure, omission or delay on the part of any
Purchaser (i) to enforce, assert or exercise any right, power or remedy
conferred by the provisions of the Purchase Documents or otherwise inuring to
the holders of the rights of any Purchaser under the Purchase Documents, or (ii)
to make demand first upon Pledgor or to proceed against Pledgor;

                  (b)      the voluntary or involuntary liquidation,
dissolution, sale of all or substantially all assets, marshaling of assets or
liabilities, receivership, conservatorship,

                                        8

<PAGE>

assignment for the benefit of creditors, insolvency, bankruptcy, reorganization,
arrangement, composition or other proceedings under laws for the protection of
debtors affecting any Issuer or Additional Issuer or any of the assets of any
Issuer or Additional Issuer, or any discharge from liability or rejection of
burdensome contracts or obligations in the course of or resulting from any such
proceedings;

                  (c)      the release, by operation of law or otherwise, of any
guarantor from any obligation under any of the Purchase Documents;

                  (d)      the invalidity, deficiency, illegality or
unenforceability of any of the Purchase Documents, in whole or in part, or of
any of the provisions thereof, or failure to perfect or maintain perfection of
any security, or any defense or excuse for failure to perform on account of
force majeure, act of God, casualty, impossibility, impracticability, or other
defense or excuse whatsoever; or

                  (e)      without limiting the foregoing, any fact or event
(whether or not similar to any of the foregoing) which in the absence of this
provision would or might constitute or afford a legal or equitable discharge or
release of or defense to a guarantor or surety.

         None of the foregoing shall be a defense to this Agreement, and this
Agreement is a primary obligation of the Pledgor.

         14.      Other Pledgors or Guarantors. The liabilities and obligations
of the Pledgor hereunder shall not be reduced or limited by reason of any
guaranty or pledge executed in favor of any Purchaser by any other Person, and
this Agreement shall be enforceable against the Pledgor without regard to any
such guaranty or pledge.

         15.      Representations, Warranties and Covenants of the Pledgor. The
Pledgor represents and warrants that (a) it owns 100% of the issued and
outstanding capital stock of each Subsidiary listed on Schedule I hereto (except
with respect to ePacific Incorporated, a Delaware corporation ("ePacific"), in
which Pledgor owns the capital stock of ePacific as set forth on Schedule I
hereto); (b) it is the legal, record and beneficial owner of, and has good and,
subject to applicable securities laws described in Section 10 hereof, marketable
title to, the Initial Pledged Stock, subject to no pledge, lien, mortgage,
hypothecation, security interest, charge, option, voting proxy or other
encumbrance whatsoever, except the existing lien and security interest created
by this Agreement and those created by the Stock Pledge Agreements of even date
herewith executed by Pledgor in favor of Bank Agent and Travelers; (c) it is
duly organized, validly existing and in good standing under the laws of its
jurisdiction of incorporation and has full power, authority and legal right to
pledge the Initial Pledged Stock pursuant to this Agreement; (d) this Agreement
has been duly authorized, executed and delivered by Pledgor and constitutes a
legal, valid and binding obligation of the Pledgor, and is enforceable in
accordance with its terms; (e) no consent of any other party (including, without
limitation, the stockholders

                                        9

<PAGE>

or creditors of the Pledgor) and no consent, license, permit, approval or
authorization of, exemption by, notice or report to, or registration, filing or
declaration with, any governmental authority, domestic or foreign, is required
to be obtained by the Pledgor or Agent in connection with the execution,
delivery or performance of this Agreement or the pledge of such shares
hereunder, in each case which has not been obtained or made, as the case may be,
and is not in full force and effect; (f) to its best knowledge after due
investigation, the execution, delivery and performance of this Agreement will
not violate any provision of any applicable law, or of any material mortgage,
indenture, lease, contract, or other agreement, instrument or undertaking to
which Pledgor is a party or which purports to be binding upon Pledgor or upon
any of its assets and will not result in the creation or imposition of any lien,
charge or encumbrance on or security interest in any of the assets of Pledgor
except as contemplated by this Agreement or the Purchase Documents; (g) all the
shares of the Initial Pledged Stock have been duly and validly issued, are fully
paid and non-assessable and have not been issued in violation of any preemptive
or other rights of any Person; (h) the Pledgor has not created any options,
warrants, rights, calls, commitments, plans, contracts or other agreements of
any character, which provide for the purchase, issuance, transfer or control of
any shares of capital stock of any Issuer pledged hereby; and (i) the pledge,
assignment and delivery of such Initial Pledged Stock pursuant to this Agreement
constitutes and, provided Agent retains possession of the Initial Pledged Stock,
at all times (disregarding, however the effects of the change in any law
relating to the pledge of stock generally) will constitute a valid first lien on
and a first perfected security interest in such shares of the Initial Pledged
Stock, and the proceeds thereof, subject to no prior lien, or to any agreement
purporting to grant to any third party other than Agent a security interest in
or control of the property or assets of the Pledgor which would include the
Initial Pledged Stock. Pledgor covenants and agrees that at its expense it will
defend the right, title and security interest of Agent in and to the Pledged
Stock and the proceeds thereof against the claims and demands of all Persons
whomsoever; and covenants and agrees that it will have like title to and right
to pledge any other property at any time hereafter pledged to Agent, as
Collateral hereunder and will likewise defend the right of Agent and the
Purchasers thereto and security interest therein. Notwithstanding anything to
the contrary contained in this Section 15, all of the capital stock of ePacific
owned by Pledgor is subject to a Stockholders' Agreement dated as of March 30,
2000 which provides, among other things, that no stockholder of ePacific may
effect certain sales of such securities without affording the other stockholders
of ePacific a right to participate in each such sale and no party to such
Stockholders' Agreement may assign its rights thereunder without the prior
written consent of the other parties thereto.

         16.      No Disposition, etc. Except in accordance with the Purchase
Documents, Pledgor agrees that it will not sell, assign, transfer, exchange, or
otherwise dispose of, or grant any option with respect to, any of the
Collateral, nor will it create, incur or permit to exist any pledge, lien,
mortgage, hypothecation, security interest, charge, option or any other
encumbrance with respect to, or transfer or grant control of any of the
Collateral, or any interest therein, or any proceeds thereof, except for the
lien and security interest and control provided for by this Agreement and except
as permitted by this Agreement or by the Purchase Documents. Without the prior
written consent of Agent, the Pledgor agrees that it will not vote to enable any
Issuer or any Additional

                                       10

<PAGE>

Issuer to issue or sell any stock or other securities of any nature in addition
to or in exchange or substitution for the Pledged Stock or grant or issue any
options, warrants, or rights of any kind to acquire, or securities convertible
into, shares of any Issuer's or any Additional Issuer's stock.

         17.      Further Assurances. Pledgor agrees that at any time and from
time to time upon the written request of Agent, the Pledgor will, or will cause
each Issuer and each Additional Issuer to, execute and deliver such further
documents and do such further acts and things which are necessary in the
reasonable judgment of Agent to effect the purpose of this Agreement or to
obtain, maintain and perfect the security interest and control granted under
this Agreement in any applicable jurisdiction, and any expense of Agent so
incurred shall be a part of the Obligations.

         18.      Financing Statement. Agent shall be entitled at any time to
file this Agreement or a carbon, photographic, or other reproduction of this
Agreement, as a financing statement, but the failure of Agent to do so shall not
impair the validity or enforceability of this Agreement. Pledgor shall pay all
fees associated with such filing.

         19.      Severability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

         20.      No Waiver; Cumulative Remedies. Agent shall not by any act,
delay, omission or otherwise be deemed to have waived any of its rights or
remedies hereunder and no waiver shall be valid unless in writing, signed by
Agent, and then only to the extent therein set forth. A waiver by Agent of any
right or remedy hereunder on any one occasion shall not be construed as a bar to
any right or remedy which Agent would otherwise have on any future occasion. No
failure to exercise nor any delay in exercising on the part of Agent, any right,
power or privilege hereunder, shall operate as a waiver thereof, nor shall any
single or partial exercise of any right, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right, power
or privilege. The rights and remedies herein provided are cumulative and may be
exercised singly or concurrently, and are not exclusive of any rights or
remedies provided by law.

         21.      Waivers, Amendments. None of the terms or provisions of this
Agreement may be waived, altered, modified or amended except by an instrument in
writing, duly executed by Agent. This Agreement and all obligations of the
Pledgor hereunder shall be binding upon the successors and assigns of the
Pledgor, and shall, together with the rights and remedies of Agent hereunder,
inure to the benefit of Agent, the Purchasers and their respective successors
and assigns.

                                       11

<PAGE>

         22.      GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND BE
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS
WITHOUT GIVING EFFECT TO THE CHOICE OF LAWS RULES THEREOF. ANY LEGAL ACTION OR
PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE UNITED STATES
DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS, DALLAS DIVISION, AND, BY
EXECUTION AND DELIVERY OF THIS AGREEMENT, THE PLEDGOR HEREBY ACCEPTS FOR ITSELF
AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE
JURISDICTION OF THE AFORESAID COURT.

         23.      Counterparts. This Agreement may be executed in any number of
counterparts and by the different parties on separate counterparts and each such
counterpart shall be deemed to be an original, but all such counterparts shall
together constitute one and the same Agreement.

         24.      Reinstatement. This Agreement shall remain in full force and
effect and continue to be effective should any petition be filed by or against
the Pledgor or any Issuer or any Additional Issuer for liquidation or
reorganization, should the Pledgor or such Issuer or Additional Issuer become
insolvent or make an assignment for the benefit of creditors or should a
receiver or trustee be appointed for all or any significant part of the
Pledgor's assets or the assets of such Issuer or Additional Issuer and shall
continue to be effective or be reinstated, as the case may be, if at any time
payment and performance of the Obligations, or any part thereof is, pursuant to
applicable law, rescinded or reduced in amount, or must otherwise be restored or
returned by any obligee of the Obligations, whether as a "voidable preference",
"fraudulent conveyance", or otherwise, all as though such payment or performance
had not been made. In the event that any payment, or any part thereof, is
rescinded, reduced, restored or returned, the Obligations shall be reinstated
and deemed reduced only by such amount and not so rescinded, reduced, restored
or returned.

         25.      ENTIRETY. THIS AGREEMENT REPRESENTS THE FINAL AGREEMENT
BETWEEN THE PARTIES HERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS BY THE PARTIES, THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

         26.      Intercreditor Agreement. In the event of any conflict between
the terms, conditions, covenants, or agreements contained herein and in the
Intercreditor Agreement, the terms, conditions, covenants and agreements
contained in the Intercreditor Agreement shall control. Notwithstanding anything
to the contrary contained herein, (a) each exercise of rights or remedies in
respect of the Collateral hereunder by Agent shall be subject to, and shall only
be made in accordance with, the Intercreditor Agreement and (b) any and all
Proceeds received by Agent with respect to any sale of, collection from or other
realization upon all or any part of the Collateral whether consisting of
investment property, monies, checks, notes, drafts, bills of

                                       12

<PAGE>

exchange, money orders or commercial paper of any kind whatsoever, shall,
subject to the terms of the Intercreditor Agreement, be immediately applied to
the Obligations in the order specified in Article 3 of the Note Agreement. In
addition, notwithstanding anything herein to the contrary, from the date hereof
through and until the date that the Obligations (as such term is defined in the
Credit Agreement) have been satisfied in full, any delivery requirements
hereunder for purposes of perfecting the Agent's lien in the Pledged Stock,
together with all appropriate powers and/or endorsements duly executed in blank
by the Pledgor, shall be waived; provided, however, once the Obligations (as
such term is defined in the Credit Agreement) have been satisfied in full, the
Pledgor shall immediately deliver the Pledged Stock, together with all
appropriate powers and/or endorsements duly executed in blank by the Pledgor, to
the Agent.

               [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

                                       13

<PAGE>

         IN WITNESS WHEREOF, the Pledgor has caused this Agreement to be duly
executed and delivered as of the day and year first above written.

                                            PLEDGOR:

                                            ACE CASH EXPRESS, INC.

                                            By:_________________________________

                                               Name:

                                               Title:

<PAGE>

                                   SCHEDULE I

                                  Pledged Stock

<PAGE>

THIS STOCK PLEDGE AGREEMENT IS SUBORDINATE (INCLUDING WITH RESPECT TO LIEN
PRIORITY) IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN
INTERCREDITOR AGREEMENT, DATED AS OF THE DATE HEREOF, BY AND AMONG BORROWER,
AGENT AND CERTAIN OTHER CREDITORS OF BORROWER (AS AMENDED, MODIFIED OR RESTATED
FROM TIME TO TIME, THE "INTERCREDITOR AGREEMENT") TO THE INDEBTEDNESS AND OTHER
LIABILITIES OWED BY BORROWER UNDER AND PURSUANT TO THAT CERTAIN CREDIT
AGREEMENT, DATED AS OF THE DATE HEREOF, BY AND AMONG BORROWER, THE LENDERS FROM
TIME TO TIME PARTY THERETO, WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION, AS
ADMINISTRATIVE AGENT FOR SUCH LENDERS (THE "BANK AGENT"), AND JPMORGAN CHASE
BANK, AS AGENT FOR SUCH LENDERS, AS THE SAME MAY BE AMENDED OR MODIFIED FROM
TIME TO TIME (THE "CREDIT AGREEMENT") AND EACH RELATED "CREDIT DOCUMENT" (AS
SUCH TERM IS DEFINED THEREIN).

                             STOCK PLEDGE AGREEMENT

         THIS STOCK PLEDGE AGREEMENT (this "Agreement") is executed as of the
day of March 31, 2003 by CHECK EXPRESS, INC., a Florida corporation ("Pledgor"),
in favor of AMERICAN CAPITAL FINANCIAL SERVICES, INC., a Delaware corporation
("ACFS"), as administrative agent ("ACFS" in such capacity, "Agent") for the
purchasers (the "Purchasers") from time to time a party to the Note Agreement
(as such term is defined below).

                                    RECITALS:

         WHEREAS, the Pledgor is a wholly-owned subsidiary of Ace Cash Express,
Inc., a Texas corporation ("Borrower");

         WHEREAS, Borrower, Agent and Purchasers have entered into that certain
Note Purchase Agreement of even date herewith (as amended, modified, increased,
supplemented and/or restated from time to time the "Note Agreement");

         WHEREAS, it is a condition precedent to the extension of credit under
the Note Agreement and to the Purchasers' obligations under the Note Agreement
that the Pledgor shall have executed and delivered this Agreement;

         WHEREAS, the board of directors of the Pledgor has determined that the
Pledgor will significantly benefit, directly or indirectly, from the extensions
of credit by the Purchasers to Borrower under the Note Agreement and the other
transactions contemplated by the Purchase Documents (as defined in the Note
Agreement); and

         WHEREAS, it is a condition precedent to the extension of credit under
the Note Agreement and to Purchasers' obligations under the Note Agreement, that
Borrower, Agent and certain other creditors of Borrower enter into that certain
Intercreditor Agreement of even date

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herewith (as amended, modified or restated from time to time, the "Intercreditor
Agreement"), pursuant to which, among other things, Agent and the other parties
thereto shall establish their relative rights and respective lien priorities in
and to the Collateral (as hereafter defined).

         NOW, THEREFORE, in consideration of these premises and in order to
induce the Purchasers to extend the credit to Borrower represented by the
Obligations, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as
follows:

                                   AGREEMENTS:

         1.       Defined Terms. Unless otherwise defined herein, terms defined
in the Note Agreement shall have such defined meanings when used herein. For
purposes of this Agreement, the following terms shall have the respective
meanings assigned thereto below:

         "Obligations" means

         (a)      all indebtedness, obligations and liabilities, including all
costs, expenses and fees, now or hereafter owing by Borrower to Agent or
Purchasers under the Note Agreement, the Notes, this Agreement or any other
Purchase Document;

         (b)      any and all renewals, extensions, modifications and increases
of such Obligations; and

         (c)      all costs, expenses and fees, including but not limited to all
court costs and reasonable attorneys' fees, arising in connection with the
collection of any or all amounts, indebtedness, obligations and liabilities
described in items (a) through (b) above, including all costs, expenses and fees
arising in connection with the enforcement of this Agreement.

         2.       Pledge. The Pledgor hereby pledges, assigns, hypothecates,
transfers and delivers (subject to Section 26 hereof) to Agent, and hereby
grants to Agent, a lien on, a security interest in and control (as defined in
the Code (as defined in Section 10 hereof)) of: (a) all investment property (as
defined in the Code) now owned or hereafter acquired by Pledgor including but
not limited to the pledged stock described on Schedule I hereto (the "Initial
Pledged Stock") issued by the Persons described on Schedule I (each, an
"Issuer"), (b) all shares of stock, common or preferred, certificate or
uncertificated securities (as defined in the Code), options, interests,
participations, and other equivalents, warrants, convertible debentures and all
agreements, instruments and documents convertible, in whole or part, into any
one or more of the foregoing (the property described in the foregoing clauses
(a) and (b) is referred to herein as the "Stock") of each Issuer or any other
judicial person (each, an "Additional Issuer") which Pledgor shall, from time to
time, become entitled to receive or shall receive as set forth in Section 3
hereof (together

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with any Stock options or rights received pursuant to Section 3 hereof, the
"Additional Pledged Stock"; the Additional Pledged Stock and the Initial Pledged
Stock being sometimes hereinafter referred to as the "Pledged Stock"), (c) all
other Collateral (as defined in Section 4 hereto as may be pledged to Agent, at
any time and from time to time hereunder, and (d) all Proceeds (as defined in
the Intercreditor Agreement) thereof, together with appropriate undated stock
powers duly executed in blank, as collateral security for the Obligations.

         3.       Stock Dividends, Distributions, etc. If, while this Agreement
is in effect, the Pledgor shall become entitled to receive or shall receive any
Stock (including, without limitation, any Stock dividend or a distribution in
connection with any reclassification, increase or reduction of capital, or
issued in connection with any reorganization), option or rights, whether as an
addition to, in substitution of, or in exchange for any shares of any Pledged
Stock, or otherwise, the Pledgor agrees (a) to cause the same to be
certificated, and (b) to accept the same as Agent's agent and to hold the same
in trust on behalf of and for the benefit of Agent segregated from the other
assets of the Pledgor and to deliver (subject to Section 26 hereof) the same
forthwith to Agent, in the exact form received, with the endorsement of the
Pledgor, when necessary and/or appropriate, to execute undated stock powers,
duly executed in blank, to be held by Agent, subject to the terms hereof, as
additional collateral security for the Obligations, and such other documents as
Agent shall reasonably request in order to perfect Agent's security interest
therein and grant Agent control thereof. Any sums paid upon or in respect of the
Pledged Stock upon the liquidation or dissolution of an Issuer or any Additional
Issuer shall be paid over to Agent, to be held by it in trust as additional
collateral security for the Obligations; and in case any distribution of capital
shall be made on or in respect of the Pledged Stock or any property shall be
distributed upon or with respect to the Pledged Stock pursuant to the
recapitalization or reclassification of the capital of an Issuer or pursuant to
the reorganization thereof, the property so distributed shall be delivered
(subject to Section 26 hereof) to Agent, to be held by it as additional
collateral security for the Obligations. All sums of money and property so paid
or distributed in respect of the Pledged Stock which are received by the Pledgor
shall, until paid or delivered to Agent, be held by the Pledgor in trust,
segregated from the other assets of the Pledgor, as additional collateral
security for the Obligations.

         4.       Collateral. The Pledged Stock and all other property at any
time and from time to time pledged to Agent hereunder (whether described in
Schedule I hereof or not) and all income therefrom and proceeds thereof, are
herein collectively sometimes called the "Collateral".

         5.       Record Ownership of Pledged Stock. Whether or not an Event of
Default has occurred and is continuing, Agent at any time may have the Pledged
Stock registered in its name, or in the name of its nominee or nominees, as
pledgee, and, as to any Pledged Stock so registered, Agent shall execute and
deliver (or cause to be executed and delivered) to Pledgor all such proxies,
powers of attorney, entitlement orders, dividend coupons or orders, and other
documents as Pledgor may reasonably request for the purpose of enabling Pledgor
to exercise the voting rights and powers which it is entitled to exercise under
this Agreement and to receive the

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dividends and other payments in respect of the Pledged Stock which it is
authorized to receive and retain under this Agreement and the Purchase
Documents.

         6.       Voting of Pledged Stock. So long as no Event of Default shall
have occurred and be continuing, Pledgor shall be entitled to exercise all
voting rights pertaining to the Pledged Stock; provided, however, that no vote
shall be cast or consent, waiver or ratification given or action taken which
would impair the Collateral or violate any provision of this Agreement or the
Purchase Documents, including, without limitation, any act which would increase
the authorized issued or outstanding shares of capital Stock of an Issuer or any
Additional Issuer. Upon the occurrence and during the continuance of an Event of
Default, the right to vote the Pledged Stock and all other corporate rights
pertaining to the Pledged Stock shall be vested exclusively in Agent, including
any and all rights of conversion, exchange, subscription or any other rights,
privileges or options pertaining to any shares of the Pledged Stock as if Agent
were the absolute owner thereof, including, without limitation, the right to
exchange at its discretion any and all of the Pledged Stock upon the merger,
consolidation, reorganization, recapitalization or other readjustment of an
Issuer or any Additional Issuer or upon the exercise by an Issuer or any
Additional Issuer or Agent of any right, privilege or option pertaining to any
shares of the Pledged Stock, and in connection therewith, to deposit and deliver
any and all of the Pledged Stock with any committee, depository, transfer agent,
registrar or other designated agency upon such terms and conditions as it may
determine, all without liability except to account for property actually
received by it, but Agent shall have no duty to exercise any of the aforesaid
rights, privileges or options or be responsible for any failure to do so or
delay in so doing. TO THIS END, PLEDGOR HEREBY IRREVOCABLY CONSTITUTES AND
APPOINTS AGENT THE PROXY AND ATTORNEY-IN-FACT OF PLEDGOR, WITH FULL POWER OF
SUBSTITUTION, TO VOTE, AND TO ACT WITH RESPECT TO, THE PLEDGED STOCK STANDING IN
THE NAME OF PLEDGOR OR WITH RESPECT TO WHICH PLEDGOR IS ENTITLED TO VOTE AND
ACT, SUBJECT TO THE UNDERSTANDING THAT SUCH PROXY MAY NOT BE EXERCISED UNLESS AN
EVENT OF DEFAULT HAS OCCURRED AND IS CONTINUING, IN EACH CASE PURSUANT TO NOTE
AGREEMENT. THE PROXY HEREIN GRANTED IS COUPLED WITH AN INTEREST, IS IRREVOCABLE,
AND SHALL CONTINUE UNTIL ALL COMMITMENTS OF ANY PURCHASER TO EXTEND CREDIT TO
PLEDGOR HAVE BEEN TERMINATED AND THE OBLIGATIONS HAVE BEEN PAID AND PERFORMED IN
FULL.

         7.       Limitations on Agent's Obligations. Agent shall not be liable
for failure to collect or realize upon the Obligations or any collateral
security or guarantee therefor, or any part thereof, or for any delay in so
doing nor shall Agent be under any obligation to take any action whatsoever with
regard thereto.

         8.       Agent's Appointment as Attorney-in-Fact. (a) In addition to,
and without limiting the scope of any other provision in this Agreement, the
Pledgor hereby irrevocably constitutes and appoints Agent and any officer or
agent thereof, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power and authority in the place and
stead of the Pledgor and in the name of the Pledgor or in its own name, from
time to time in Agent's discretion, for the purpose of carrying out the actions
and to execute any and all documents and instruments which may be necessary or
desirable to accomplish the purposes of this Agreement

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and, without limiting the generality of the foregoing, hereby gives Agent, the
power and right, on behalf of the Pledgor, without notice to or assent by the
Pledgor upon the occurrence and during the continuance of an Event of Default,
but with notice to and assent by Pledgor prior to the occurrence of an Event of
Default, to do the following: (i) to ask, demand, collect, receive and give
acquittances and receipts for any and all monies due and to become due under the
Collateral; (ii) in the name of the Pledgor or its own name or otherwise, to
take possession of and endorse and collect any checks, drafts, notes,
acceptances or other instruments for the payment of moneys due under the
Collateral; (iii) to file any claim or to take any other action or proceeding in
any court of law or equity or otherwise deemed appropriate by Agent for the
purpose of collecting any and all such moneys due under the Collateral whenever
payable; (iv) to pay or discharge taxes, liens, security interests or other
encumbrances levied or placed on or threatened against the Collateral; (v) to
direct any party liable for any payment under the Collateral to make payment of
any and all moneys due and to become due thereunder directly to Agent, or as
Agent shall direct; (vi) to receive payment of and receipt for any and all
moneys, claims and other amounts due and to become due at any time in respect of
or arising out of any Collateral; (vii) to commence and prosecute any suits,
actions or proceedings at law or in equity in any court of competent
jurisdiction to collect the Collateral or any part thereof and to enforce any
other right in respect of the Collateral; (viii) to defend any suit, action or
proceeding brought against the Pledgor with respect to any Collateral; (ix) to
settle, compromise or adjust any suit, action or proceeding described above and,
in connection therewith, to give such discharges or releases as Agent may deem
appropriate; (x) exercise voting rights attributable to the Pledged Stock
pursuant to Section 6 hereof; and (xi) generally to sell, transfer, pledge, make
any agreement with respect to or otherwise deal with any of the Collateral as
fully and completely as though Agent were the absolute owner thereof for all
purposes, and to do, at Agent's option and the Pledgor's expense, at any time,
or from time to time, all acts and things which Agent deems necessary to
protect, preserve or realize upon the Collateral and Agent's security interest
therein, in order to effect the intent of this Agreement, all as fully and
effectively as the Pledgor might do.

         The Pledgor hereby ratifies all that said attorneys shall lawfully do
or cause to be done.

                  (b)      The powers conferred on Agent, hereunder are solely
to protect its interests in the Collateral and shall not impose any duty upon it
to exercise any such powers. Agent shall be accountable only for amounts that it
actually receives as a result of the exercise of such powers and neither it nor
any of its officers, directors, employees or agents shall be responsible to the
Pledgor for any act or failure to act.

                  (c)      The Pledgor also authorizes Agent, at any time and
from time to time, to execute, in connection with any sale of the Collateral,
any endorsements, assignments or other instruments of conveyance or transfer
with respect to the Collateral.

         9.       Performance by Agent of the Pledgor's Obligations. If the
Pledgor fails to perform or comply with any of its agreements contained herein
and Agent, as provided for by the terms of this Agreement, shall itself perform
or comply, or otherwise cause performance or

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<PAGE>

compliance, with such agreement, then the expenses of Agent incurred in
connection with such performance or compliance, together with interest thereon
to accrue at a rate of interest equal to the rate of interest set forth in
Section 8.2(c) of the Note Agreement from the date five days after notice from
Agent that such expenses are incurred, shall be payable by the Pledgor to Agent,
on demand and shall constitute Obligations secured hereby.

         10.      Remedies. (a) Upon the occurrence and during the continuance
of an Event of Default and at any time thereafter, Agent may declare all of the
Obligations or any part thereof immediately due and payable and, without demand
of performance or other demand, advertisement or notice of any kind (except the
notice specified below of time and place of public or private sale) to or upon
the Pledgor or any other Person (all and each of which demands, advertisements
and/or notices are hereby expressly waived), may forthwith collect, receive,
appropriate and realize upon the Collateral, or any part thereof, and/or may
forthwith sell, assign, give option or options to purchase, contract to sell or
otherwise dispose of and deliver said Collateral, or any part thereof, in one or
more parcels at public or private sale or sales, at any exchange, broker's board
or at Agent's offices or elsewhere upon such terms and conditions as it may deem
advisable and at such prices as it may deem best, for cash or on credit or for
future delivery without assumption of any credit risk, with the right to Agent
upon any such sale or sales, public or private, to purchase the whole or any
part of said Collateral so sold, free of any right or equity of redemption in
the Pledgor, which right or equity is hereby expressly waived or released. Agent
shall apply the net proceeds of any such collection, recovery, receipt,
appropriation, realization or sale, in accordance with the terms of the
Intercreditor Agreement, the Pledgor remaining liable for any deficiency
remaining unpaid after such application, and only after so applying such net
proceeds and after the payment by Agent of any amount required by any provision
of law, including, without limitation, Section 9.615 of the Uniform Commercial
Code of the State of Texas (as amended, the "Code"), need Agent account for the
surplus, if any, to the Pledgor. The Pledgor agrees that, to the extent
permitted by law, Agent need not give more than ten (10) days' notice of the
time and place of any public sale or of the time after which a private sale or
other intended disposition is to take place and that such notice is reasonable
notification of such matters. No notification need be given to the Pledgor if it
has signed after default a statement renouncing or modifying any right to
notification of sale or other intended disposition. IN ADDITION TO THE RIGHTS
AND REMEDIES GRANTED TO IT IN THIS AGREEMENT AND IN ANY OTHER INSTRUMENT OR
AGREEMENT SECURING, EVIDENCING OR RELATING TO ANY OF THE OBLIGATIONS, PLEDGEE
SHALL HAVE ALL THE RIGHTS AND REMEDIES OF A SECURED PARTY UNDER THE CODE. All
waivers by the Pledgor of rights (including rights to notice) and all rights and
remedies afforded the Pledgor herein, and all other provisions of this
Agreement, are expressly made subject to any applicable mandatory provisions of
law limiting, or imposing conditions (including conditions as to reasonableness)
upon such waivers of the effectiveness thereof or any such rights and remedies.
Any sale or other disposition of the Collateral shall be in compliance with all
provisions of law (including applicable securities laws, and regulations and
applicable provisions of the Code).

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                  (b)      The Pledgor recognizes that Agent may be unable to
effect a public sale of any or all the Pledged Stock by reason of certain
prohibitions contained in the Securities Act of 1933 (as amended, the
"Securities Act") and applicable state securities laws, but may be compelled to
resort to one or more private sales thereof to a restricted group of purchasers
who will be obliged to agree, among other things, to acquire such securities for
their own account for investment and not with a view to the distribution or
resale thereof. The Pledgor acknowledges and agrees that any such private sale
may result in prices and other terms less favorable to the seller than if such
sale were a public sale and, notwithstanding such circumstances, agrees that any
such private sale shall be deemed to have been made in a commercially reasonable
manner. Agent shall be under no obligation to delay a sale of any of the Pledged
Stock for the period of time necessary to permit any Issuer or Additional Issuer
of such securities to register such securities for public sale under the
Securities Act, or under applicable state securities laws, even if such Issuer
or Additional Issuer would agree to do so.

                  (c)      The Pledgor further agrees to do or cause to be done
all such other acts and things as may be necessary to make such sale or sales of
any portion of all of the Pledged Stock valid and binding and in compliance with
any and all applicable laws, regulations, orders, writs, injunctions, decrees or
awards of any and all courts, arbitrators or governmental instrumentalities,
domestic or foreign, having jurisdiction over any such sale or sales, all at the
Pledgor's expense. The Pledgor further agrees that a breach of any of the
covenants contained in this Section 10 will cause irreparable injury to Agent,
that Agent has no adequate remedy at law in respect of such breach and, as a
consequence, agrees that each and every covenant contained in this paragraph
shall be specifically enforceable against the Pledgor and the Pledgor hereby
waives and agrees not to assert any defenses against an action for specific
performance of such covenants except for a defense that no default of the
covenants, terms or conditions of the Purchase Documents has occurred. The
Pledgor further acknowledges the impossibility of ascertaining the amount of
damages which would be suffered by Agent by reason of a breach of any such
covenants and, consequently, agrees that, if Agent, shall sue for damages for
breach, Pledgor shall pay, as liquidated damages and not as a penalty, an amount
equal to the value of the Pledged Stock on the date Agent shall demand
compliance with this paragraph.

         11.      Waiver of Subrogation. Notwithstanding anything to the
contrary in this Agreement, unless and until all commitments of any Purchaser to
extend credit to Borrower have terminated and the Obligations have been
indefeasibly paid and performed in full, the Pledgor hereby irrevocably waives
all rights Pledgor may have at law or in equity (including, without limitation,
any law subrogating the Pledgor to the rights of Agent) to seek contribution,
indemnification, or any other form of reimbursement from Borrower, any Issuer of
Additional Issuer, any other guarantor or pledgor, or any other Person now or
hereafter primarily or secondarily liable for any obligations of such Issuer or
Additional Issuer to Agent, for any disbursement made by the Pledgor under or in
connection with this Agreement or otherwise. The Pledgor further agrees that, to
the extent that the waiver of any such subrogation, contribution, reimbursement,
indemnity or otherwise is found to be void or voidable for any reason, any such

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rights which the Pledgor may have shall be junior and subordinate in all
respects to the rights of Agent against any Issuer or any Additional Issuer.

         12.      Actions by Agent. No action that any Purchaser may take or
omit to take in connection with any of the Purchase Documents, any indebtedness
owing by Borrower or Pledgor to such Purchaser (including, without limitation,
renewals, extensions, modifications and increases thereof), or any security for
the payment of any indebtedness of Borrower or Pledgor to any Purchaser, or for
the performance of any obligation or undertaking of Borrower or Pledgor, nor any
course of dealing with Borrower, Pledgor or any other Person, shall release the
Pledgor from his obligations hereunder, affect this Agreement in any way, or
afford the Pledgor any recourse against any Purchaser. By way of example, but
not in limitation of the foregoing, the Pledgor hereby expressly agrees that
Agent and any Purchaser may, from time to time, without notice to the Pledgor:

                  (a)      sell, assign, transfer or grant participations in any
Obligation and/or any right held by any Purchaser pursuant to or in connection
with the Purchase Documents;

                  (b)      amend, change, or modify, in whole or in part, any
documents or instruments evidencing, securing or relating to any indebtedness or
undertaking of Borrower or Pledgor to any Purchaser;

                  (c)      accelerate, change, extend, or renew the time for
payment of the Obligations or any other indebtedness arising under any documents
or instruments evidencing, securing or relating to any indebtedness or
undertaking of Borrower or Pledgor to any Purchaser;

                  (d)      compromise or settle any amount due or owing, or
claimed to be due or owing, under the Obligations or under any documents or
instruments evidencing, securing or relating to any indebtedness or undertaking
of Borrower or Pledgor to any Purchaser;

                  (e)      surrender, release, or subordinate any or all
security for any indebtedness or undertaking of Borrower or Pledgor to Agent or
accept additional or substituted security therefor;

                  (f)      release any guarantor or pledgor of any indebtedness
or undertaking of Borrower or Pledgor to Agent, or substitute or add additional
guarantors or pledgors; and

                  (g)      apply collateral securing the Obligations to other
indebtedness also secured by such collateral.

         The provisions of this Agreement shall extend and be applicable to all
renewals, increases, amendments, extensions, modifications of and substitutions
for the Purchase

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Documents, and all references herein to the Purchase Documents shall be deemed
to include any renewal, increase, extension, amendment or modification thereof
or substitution therefor.

         13.      No Impairment. The obligations, guaranties, undertakings,
covenants, agreements and duties of the Pledgor under this Agreement shall not
be affected or impaired by any of the following, although without notice to or
consent of the Pledgor:

                  (a)      any failure, omission or delay on the part of any
Purchaser (i) to enforce, assert or exercise any right, power or remedy
conferred by the provisions of the Purchase Documents or otherwise inuring to
the holders of the rights of any Purchaser under the Purchase Documents, or (ii)
to make demand first upon Borrower or to proceed against Borrower;

                  (b)      the voluntary or involuntary liquidation,
dissolution, sale of all or substantially all assets, marshaling of assets or
liabilities, receivership, conservatorship, assignment for the benefit of
creditors, insolvency, bankruptcy, reorganization, arrangement, composition or
other proceedings under laws for the protection of debtors affecting any Issuer
or Additional Issuer or any of the assets of any Issuer or Additional Issuer, or
any discharge from liability or rejection of burdensome contracts or obligations
in the course of or resulting from any such proceedings;

                  (c)      the release, by operation of law or otherwise, of any
guarantor from any obligation under any of the Purchase Documents;

                  (d)      the invalidity, deficiency, illegality or
unenforceability of any of the Purchase Documents, in whole or in part, or of
any of the provisions thereof, or failure to perfect or maintain perfection of
any security, or any defense or excuse for failure to perform on account of
force majeure, act of God, casualty, impossibility, impracticability, or other
defense or excuse whatsoever; or

                  (e)      without limiting the foregoing, any fact or event
(whether or not similar to any of the foregoing) which in the absence of this
provision would or might constitute or afford a legal or equitable discharge or
release of or defense to a guarantor or surety.

         None of the foregoing shall be a defense to this Agreement, and this
Agreement is a primary obligation of the Pledgor.

         14.      Other Pledgors or Guarantors. The liabilities and obligations
of the Pledgor hereunder shall not be reduced or limited by reason of any
guaranty or pledge executed in favor of any Purchaser by any other Person, and
this Agreement shall be enforceable against the Pledgor without regard to any
such guaranty or pledge.

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         15.      Representations, Warranties and Covenants of the Pledgor. The
Pledgor represents and warrants that (a) it owns 100% of the issued and
outstanding capital stock of each Subsidiary listed on Schedule I hereto; (b) it
is the legal, record and beneficial owner of, and has good and, subject to
applicable securities laws described in Section 10 hereof, marketable title to,
the Initial Pledged Stock, subject to no pledge, lien, mortgage, hypothecation,
security interest, charge, option, voting proxy or other encumbrance whatsoever,
except the existing lien and security interest created by this Agreement and
those created by the Stock Pledge Agreements of even date herewith executed by
Pledgor in favor of Bank Agent and Travelers; (c) it is duly organized, validly
existing and in good standing under the laws of its jurisdiction of
incorporation and has full power, authority and legal right to pledge the
Initial Pledged Stock pursuant to this Agreement; (d) this Agreement has been
duly authorized, executed and delivered by Pledgor and constitutes a legal,
valid and binding obligation of the Pledgor, and is enforceable in accordance
with its terms; (e) no consent of any other party (including, without
limitation, the stockholders or creditors of the Pledgor) and no consent,
license, permit, approval or authorization of, exemption by, notice or report
to, or registration, filing or declaration with, any governmental authority,
domestic or foreign, is required to be obtained by the Pledgor or Agent in
connection with the execution, delivery or performance of this Agreement or the
pledge of such shares hereunder, in each case which has not been obtained or
made, as the case may be, and is not in full force and effect; (f) to its best
knowledge after due investigation, the execution, delivery and performance of
this Agreement will not violate any provision of any applicable law, or of any
material mortgage, indenture, lease, contract, or other agreement, instrument or
undertaking to which Pledgor is a party or which purports to be binding upon
Pledgor or upon any of its assets and will not result in the creation or
imposition of any lien, charge or encumbrance on or security interest in any of
the assets of Pledgor except as contemplated by this Agreement or the Purchase
Documents; (g) all the shares of the Initial Pledged Stock have been duly and
validly issued, are fully paid and non-assessable and have not been issued in
violation of any preemptive or other rights of any Person; (h) the Pledgor has
not created any options, warrants, rights, calls, commitments, plans, contracts
or other agreements of any character, which provide for the purchase, issuance,
transfer or control of any shares of capital stock of any Issuer pledged hereby;
and (i) the pledge, assignment and delivery of such Initial Pledged Stock
pursuant to this Agreement constitutes and, provided Agent retains possession of
the Initial Pledged Stock, at all times (disregarding, however the effects of
the change in any law relating to the pledge of stock generally) will constitute
a valid first lien on and a first perfected security interest in such shares of
the Initial Pledged Stock, and the proceeds thereof, subject to no prior lien,
or to any agreement purporting to grant to any third party other than Agent a
security interest in or control of the property or assets of the Pledgor which
would include the Initial Pledged Stock. Pledgor covenants and agrees that at
its expense it will defend the right, title and security interest of Agent in
and to the Pledged Stock and the proceeds thereof against the claims and demands
of all Persons whomsoever; and covenants and agrees that it will have like title
to and right to pledge any other property at any time hereafter pledged to
Agent, as Collateral hereunder and will likewise defend the right of Agent and
the Purchasers thereto and security interest therein.

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<PAGE>

         16.      No Disposition, etc. Except in accordance with the Purchase
Documents, Pledgor agrees that it will not sell, assign, transfer, exchange, or
otherwise dispose of, or grant any option with respect to, any of the
Collateral, nor will it create, incur or permit to exist any pledge, lien,
mortgage, hypothecation, security interest, charge, option or any other
encumbrance with respect to, or transfer or grant control of any of the
Collateral, or any interest therein, or any proceeds thereof, except for the
lien and security interest and control provided for by this Agreement and except
as permitted by this Agreement or by the Purchase Documents. Without the prior
written consent of Agent, the Pledgor agrees that it will not vote to enable any
Issuer or any Additional Issuer to issue or sell any stock or other securities
of any nature in addition to or in exchange or substitution for the Pledged
Stock or grant or issue any options, warrants, or rights of any kind to acquire,
or securities convertible into, shares of any Issuer's or any Additional
Issuer's stock.

         17.      Further Assurances. Pledgor agrees that at any time and from
time to time upon the written request of Agent, the Pledgor will, or will cause
each Issuer and each Additional Issuer to, execute and deliver such further
documents and do such further acts and things which are necessary in the
reasonable judgment of Agent to effect the purpose of this Agreement or to
obtain, maintain and perfect the security interest and control granted under
this Agreement in any applicable jurisdiction, and any expense of Agent so
incurred shall be a part of the Obligations.

         18.      Financing Statement. Agent shall be entitled at any time to
file this Agreement or a carbon, photographic, or other reproduction of this
Agreement, as a financing statement, but the failure of Agent to do so shall not
impair the validity or enforceability of this Agreement. Pledgor shall pay all
fees associated with such filing.

         19.      Severability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

         20.      No Waiver; Cumulative Remedies. Agent shall not by any act,
delay, omission or otherwise be deemed to have waived any of its rights or
remedies hereunder and no waiver shall be valid unless in writing, signed by
Agent, and then only to the extent therein set forth. A waiver by Agent of any
right or remedy hereunder on any one occasion shall not be construed as a bar to
any right or remedy which Agent would otherwise have on any future occasion. No
failure to exercise nor any delay in exercising on the part of Agent, any right,
power or privilege hereunder, shall operate as a waiver thereof, nor shall any
single or partial exercise of any right, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right, power
or privilege. The rights and remedies herein provided are cumulative and may be
exercised singly or concurrently, and are not exclusive of any rights or
remedies provided by law.

                                       11

<PAGE>

         21.      Waivers, Amendments. None of the terms or provisions of this
Agreement may be waived, altered, modified or amended except by an instrument in
writing, duly executed by Agent. This Agreement and all obligations of the
Pledgor hereunder shall be binding upon the successors and assigns of the
Pledgor, and shall, together with the rights and remedies of Agent hereunder,
inure to the benefit of Agent, the Purchasers and their respective successors
and assigns.

         22.      GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND BE
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS
WITHOUT GIVING EFFECT TO THE CHOICE OF LAWS RULES THEREOF. ANY LEGAL ACTION OR
PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE UNITED STATES
DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS, DALLAS DIVISION, AND, BY
EXECUTION AND DELIVERY OF THIS AGREEMENT, THE PLEDGOR HEREBY ACCEPTS FOR ITSELF
AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE
JURISDICTION OF THE AFORESAID COURT. The Pledgor represents and warrants that it
has appointed CT Corporation or one of its affiliates as its registered agent
for service of process in the State of Texas.

         23.      Counterparts. This Agreement may be executed in any number of
counterparts and by the different parties on separate counterparts and each such
counterpart shall be deemed to be an original, but all such counterparts shall
together constitute one and the same Agreement.

         24.      Reinstatement. This Agreement shall remain in full force and
effect and continue to be effective should any petition be filed by or against
the Pledgor or any Issuer or any Additional Issuer for liquidation or
reorganization, should the Pledgor or such Issuer or Additional Issuer become
insolvent or make an assignment for the benefit of creditors or should a
receiver or trustee be appointed for all or any significant part of the
Pledgor's assets or the assets of such Issuer or Additional Issuer and shall
continue to be effective or be reinstated, as the case may be, if at any time
payment and performance of the Obligations, or any part thereof is, pursuant to
applicable law, rescinded or reduced in amount, or must otherwise be restored or
returned by any obligee of the Obligations, whether as a "voidable preference",
"fraudulent conveyance", or otherwise, all as though such payment or performance
had not been made. In the event that any payment, or any part thereof, is
rescinded, reduced, restored or returned, the Obligations shall be reinstated
and deemed reduced only by such amount and not so rescinded, reduced, restored
or returned.

         25.      ENTIRETY. THIS AGREEMENT REPRESENTS THE FINAL AGREEMENT
BETWEEN THE PARTIES HERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR

                                       12

<PAGE>

SUBSEQUENT ORAL AGREEMENTS BY THE PARTIES, THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

         26.      Intercreditor Agreement. In the event of any conflict between
the terms, conditions, covenants, or agreements contained herein and in the
Intercreditor Agreement, the terms, conditions, covenants and agreements
contained in the Intercreditor Agreement shall control. Notwithstanding anything
to the contrary contained herein, (a) each exercise of rights or remedies in
respect of the Collateral hereunder by Agent shall be subject to, and shall only
be made in accordance with, the Intercreditor Agreement and (b) any and all
Proceeds received by Agent with respect to any sale of, collection from or other
realization upon all or any part of the Collateral whether consisting of
investment property, monies, checks, notes, drafts, bills of exchange, money
orders or commercial paper of any kind whatsoever, shall, subject to the terms
of the Intercreditor Agreement, be immediately applied to the Obligations in the
order specified in Article 3 of the Note Agreement. In addition, notwithstanding
anything herein to the contrary, from the date hereof through and until the date
that the Obligations (as such term is defined in the Credit Agreement) have been
satisfied in full, any delivery requirements hereunder for purposes of
perfecting the Agent's lien in the Pledged Stock, together with all appropriate
powers and/or endorsements duly executed in blank by the Pledgor, shall be
waived; provided, however, once the Obligations (as such term is defined in the
Credit Agreement) have been satisfied in full, the Pledgor shall immediately
deliver the Pledged Stock, together with all appropriate powers and/or
endorsements duly executed in blank by the Pledgor, to the Agent.

         [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

                                       13

<PAGE>

         IN WITNESS WHEREOF, the Pledgor has caused this Agreement to be duly
executed and delivered as of the day and year first above written.

                                            PLEDGOR:

                                            CHECK EXPRESS, INC.

                                            By:_________________________________

                                               Name:

                                               Title:

<PAGE>

                                   SCHEDULE I

                                  Pledged Stock

<PAGE>

EXHIBIT D

THIS UNCONDITIONAL GUARANTY AGREEMENT IS SUBORDINATE (INCLUDING WITH RESPECT TO
LIEN PRIORITY) IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN
INTERCREDITOR AGREEMENT, DATED AS OF THE DATE HEREOF, BY AND AMONG BORROWER,
AGENT AND CERTAIN OTHER CREDITORS OF BORROWER (AS AMENDED, MODIFIED OR RESTATED
FROM TIME TO TIME, THE "INTERCREDITOR AGREEMENT") TO THE INDEBTEDNESS AND OTHER
LIABILITIES OWED BY BORROWER UNDER AND PURSUANT TO THAT CERTAIN CREDIT
AGREEMENT, DATED AS OF THE DATE HEREOF, BY AND AMONG BORROWER, THE LENDERS FROM
TIME TO TIME PARTY THERETO, WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION, AS
ADMINISTRATIVE AGENT FOR SUCH LENDERS ("BANK AGENT"), AND JPMORGAN CHASE BANK,
AS AGENT FOR SUCH LENDERS, AS THE SAME MAY BE AMENDED OR MODIFIED FROM TIME TO
TIME AND EACH RELATED "CREDIT DOCUMENT" (AS SUCH TERM IS DEFINED THEREIN).

                        UNCONDITIONAL GUARANTY AGREEMENT

         THIS UNCONDITIONAL GUARANTY AGREEMENT (this "Guaranty") is made as of
March 31, 2003 by each Subsidiary (as defined in the hereinafter defined Note
Agreement) of Borrower (hereinafter defined) now a signatory hereto and which
shall hereafter become a party hereto pursuant to Section 5.11 hereof (each a
"Guarantor", and collectively, the "Guarantors"), for the benefit of AMERICAN
CAPITAL FINANCIAL SERVICES, INC., a Delaware corporation ("ACFS"), as
administrative agent (ACFS in such capacity, "Agent") for the purchasers from
time to time party to the Note Agreement (as such term is defined below).

                                    RECITALS

         1.       Pursuant to that certain Note Purchase Agreement (as the same
may be amended, modified, increased, supplemented and/or restated from time to
time, the "Note Agreement"), dated as of the date hereof and executed by and
among Ace Cash Express, Inc., a Texas corporation ("Borrower"), Agent, and the
purchasers named in Annex A thereto (collectively, together with all successors
and assigns, the "Purchasers"), Agent and the Purchasers have agreed to make
certain loans to Borrower in the principal amount set forth therein;

         2.       The Purchasers are willing to make certain loans under the
Note Agreement but only on the condition, among others, that Guarantors shall
have executed and delivered to Agent this Guaranty;

         3.       Each Guarantor will derive substantial direct and indirect
benefit from the making of the loans under the Note Agreement; and

         4.       It is a condition precedent to the extension of credit under
the Note Agreement and to Purchasers' obligations under the Note Agreement that
the Borrower, Agent and certain other creditors of Borrower enter into that
certain Intercreditor Agreement of even date herewith

<PAGE>

(as amended, modified or restated from time to time, the "Intercreditor
Agreement"), pursuant to which, among other things, Agent and the other parties
thereto shall establish the relative rights of all obligations owing by the
Borrower and the Guarantors to Agent and Purchasers, Bank Agent and Revolving
Lenders, and Travelers, respectively, including, but not limited to, the payment
priority of all obligations of the Guarantors owing to Agent and Purchasers
hereunder.

         NOW, THEREFORE, as an inducement to the Purchasers to extend credit to
Borrower, and for other good and valuable consideration, the receipt and legal
sufficiency of which are hereby acknowledged, Guarantors hereby agree as
follows:

                                   AGREEMENTS

                                    ARTICLE I

                          NATURE AND SCOPE OF GUARANTY

         Section 1.01. Guaranty of Obligations. (a) Each Guarantor, jointly and
severally, hereby irrevocably and unconditionally guarantees to Agent and each
Purchaser the due and punctual payment of the Obligations (hereinafter defined)
and each Guarantor hereby irrevocably and unconditionally covenants and agrees
that it is liable for the Obligations as primary obligor; provided, however,
that, anything herein or in any other Credit Document (as herein defined) to the
contrary notwithstanding, the maximum liability of each Guarantor hereunder and
under the other Purchase Documents shall in no event exceed such Guarantor's
Maximum Guaranteed Amount as determined at the Determination Date for such
Guarantor, and provided further, that the Maximum Guaranteed Amount for each
Guarantor hereunder shall in no event exceed the amount which can be guaranteed
by such Guarantor under applicable federal and state laws relating to insolvency
of debtors.

         (b)      Each Guarantor agrees that the Obligations may at any time and
from time to time exceed the Maximum Guaranteed Amount of such Guarantor without
impairing this Guaranty or affecting the rights and remedies of Agent and
Purchasers hereunder.

         (c)      For purposes of this Guaranty, the following terms shall have
the respective meanings assigned thereto below:

         "Adjusted Net Worth" of any Guarantor shall mean, as of any date of
determination thereof, the excess of (i) the amount of the "present fair salable
value" of the assets of such Guarantor as of the date of such determination,
over (ii) the amount of all "liabilities of such Guarantor, contingent or
otherwise," as of the date of such determination, as such quoted terms are
determined in accordance with applicable federal and state laws governing
determinations of the insolvency of debtors.

         "Purchase Documents" shall have the meaning given to such term in the
Note Agreement.

         "Determination Date" shall mean, with respect to any Guarantor, the
earlier of (a) the date of commencement of a case under Title 11 of the United
States Code in which such Guarantor is a debtor, and (b) the date enforcement
hereunder is sought with respect to such Guarantor.

                                       2

<PAGE>

         "Extension of Credit" shall mean (i) all Loans (as defined in the Note
Agreement) made to Borrower under any Credit Document, (ii) all other extensions
of credit to or for the benefit of Borrower under any Credit Document, and (iii)
to the extent not otherwise included in the foregoing, all Obligations.

         "Maximum Guaranteed Amount" for any Guarantor shall mean, as of the
Determination Date for such Guarantor, the greater of (i) ninety-five percent
(95%) of the Adjusted Net Worth of such Guarantor at the date of the execution
of this Guaranty before giving effect to any Extensions of Credit made on such
date, and (ii) ninety-five percent (95%) of the Adjusted Net Worth of such
Guarantor at the Determination Date for such Guarantor.

         Section 1.02. Defined Terms. Unless otherwise defined herein, terms
defined in the Note Agreement shall have such defined meanings when used herein.
As used herein, the term "Obligations" means:

         (a)      all indebtedness, obligations and liabilities, including all
costs, expenses and fees, now or hereafter owing by Borrower to Agent or
Purchasers under the Note Agreement, the Notes or any other Purchase Document;

         (b)      any and all renewals, extensions, modifications and increases
of such Obligations; and

         (c)      all costs, expenses and fees, including but not limited to all
court costs and reasonable attorneys' fees, arising in connection with the
collection of any or all amounts, indebtedness, obligations and liabilities
described in items (a) through (b) of this SECTION 1.02, including all costs,
expenses and fees arising in connection with the enforcement of this Guaranty.

         Section 1.03. Obligations Not Reduced by Offset. The Obligations, and
the liabilities and obligations of any Guarantor to Agent or Purchasers
hereunder, shall not be reduced, discharged or released because or by reason of
any existing or future offset, claim or defense of Borrower, or any other party,
against Agent or any Purchaser or against payment of the Obligations, whether
such offset, claim or defense arises in connection with the Obligations (or the
transactions creating the obligations) or otherwise. Without limiting the
foregoing or each Guarantor's liability hereunder, to the extent that any
Purchaser advances funds or extends credit to Borrower, and does not receive
payments or benefits thereon in the amounts and at the times required or
provided by applicable agreements or laws, each Guarantor is absolutely liable
to make such payments to (and confer such benefits on) Agent, on a timely basis
up to its Maximum Guaranteed Amount.

         Section 1.04. "Borrower" and "Guarantor" to Include Successors. The
terms "Borrower" and "Guarantor" as used herein shall include any new or
successor entity formed as a result of any merger or reorganization of Borrower
or Guarantor, respectively, and all other successors and assigns of Borrower or
Guarantor, respectively.

                                       3

<PAGE>

         Section 1.05. Payment by Guarantor. If all or any part of the
Obligations shall not be punctually paid when due, whether at maturity or
earlier by acceleration or otherwise, each Guarantor shall, immediately upon
demand by Agent or any Purchaser, and without presentment, protest, notice of
protest, notice of non-payment, notice of intention to accelerate or
acceleration or any other notice whatsoever, pay in lawful money of the United
States of America, the amount due on the Obligations to Agent or such Purchaser
at Agent's principal office in Bethesda, Maryland. Such demand(s) may be made at
any time coincident with or after the time for payment of all or part of the
Obligations, and may be made from time to time with respect to the same or
different items of Obligations. Such demand shall be deemed made, given and
received in accordance with SECTION 5.02 hereof.

         Section 1.06. No Duty to Pursue Others. It shall not be necessary for
Agent or any Purchaser (and each Guarantor hereby waives any rights which such
Guarantor may have to require Agent or any Purchaser), in order to enforce such
payment by Guarantor, first to (a) institute suit or exhaust its remedies
against Borrower or others liable on the Obligations or any other person, (b)
enforce Agent's rights against any security which shall ever have been given to
secure the Obligations, (c) enforce Agent's rights against any other guarantors
of the Obligations, (d) join Borrower or any others liable on the Obligations in
any action seeking to enforce this Guaranty, (e) exhaust any remedies available
to Agent against any security which shall ever have been given to secure the
Obligations, or (f) resort to any other means of obtaining payment of the
Obligations. Without limitation of the foregoing, each Guarantor hereby waives
all rights of such Guarantor under Chapter 34 of the Texas Business and Commerce
Code, as amended from time to time. Neither Agent nor any Purchaser shall be
required to mitigate damages or take any other action to reduce, collect or
enforce the Obligations.

         Section 1.07. Waiver of Notices, etc. Each Guarantor hereby waives
notice of (a) any loans or advances made by any Purchaser to Borrower, (b)
acceptance of this Guaranty, (c) any amendment or extension of any Credit
Document or of any other instrument or document pertaining to all or any part of
the Obligations, (d) the execution and delivery by Borrower and any Purchaser of
any Credit Document or of Borrower's execution and delivery of any promissory
notes or other documents in connection therewith, (e) the occurrence of any
breach by Borrower or Event of Default, (f) any transfer or disposition of the
Obligations, or any part thereof, by any Purchaser, (g) protest, proof of
non-payment or default by Borrower, or (h) any other action at any time taken or
omitted by Agent or any Purchaser, and, generally, all demands and notices of
every kind in connection with this Guaranty, or any documents or agreements
evidencing, securing or relating to any of the Obligations, except as otherwise
specifically provided herein or in the Purchase Documents or the Intercreditor
Agreement.

         Section 1.08. Nature of Guaranty. This Guaranty is an irrevocable,
absolute, continuing guaranty of payment and performance and not a guaranty of
collection. This Guaranty shall continue to be effective with respect to any
Obligations existing or which arise out of commitments made by any Purchaser,
prior to any attempted revocation by any Guarantor, and as to all renewals and
extensions thereof, in whole or in part, whenever made. The fact that at any
time or from time to time the Obligations may be increased or reduced shall not
release, discharge or reduce the obligation of Guarantors with respect to
indebtedness or obligations of Borrower any Purchaser thereafter incurred (or
other Obligations thereafter arising). This

                                       4

<PAGE>

Guaranty may be enforced by Agent or any Purchaser and shall not be discharged
by the assignment or negotiation of all or part of the Obligations.

         Section 1.09. Payment of Expenses. In the event that any Guarantor
should breach or fail to timely perform any provisions of this Guaranty,
Guarantors shall, within ten (10) days of written demand, pay Agent all
reasonable costs and expenses (including court costs and reasonable attorneys'
fees) incurred by Agent or any Purchaser in the enforcement hereof or the
preservation of Agent's and the Purchasers' rights hereunder. Without limiting
the foregoing, Borrower shall be directly liable for, and shall pay Agent within
ten (10) days of written demand by Agent or any Purchaser, all reasonable costs
and expenses (including court costs and reasonable attorneys' fees) incurred by
Agent or any Purchaser in the enforcement of any breach of any Guarantor or
failure by any Guarantor to timely perform any provision of this Guaranty or the
preservation of Agent's, and the Purchasers' rights thereunder. The covenant
contained in this SECTION 1.09 shall survive the payment of the Obligations.

         Section 1.10. Effect of Bankruptcy. In the event that, pursuant to any
insolvency, bankruptcy, reorganization, receivership or other debtor relief law,
or any judgment, order or decision thereunder, Agent or any Purchaser must
rescind or restore any payment, or any part thereof, received by Agent or any
Purchaser in satisfaction of the Obligations, any prior release or discharge
from the terms of this Guaranty given to any Guarantor by Agent shall be without
effect, and this Guaranty shall remain in full force and effect. It is the
intention of each Guarantor that such Guarantor's obligations hereunder shall
not be discharged except by such Guarantor's performance of such obligations and
then only to the extent of such performance.

                                   ARTICLE II

              EVENTS AND CIRCUMSTANCES NOT REDUCING OR DISCHARGING
                             GUARANTORS' OBLIGATIONS

         Each Guarantor hereby consents and agrees to each of the following, and
agrees that such Guarantor's obligations under this Guaranty shall not be
released, diminished, impaired, reduced or adversely affected by any of the
following, and waives any common law, equitable, statutory or other rights and
defenses (including without limitation rights to notice) which such Guarantor
might otherwise have as a result of or in connection with any of the following:

         Section 2.01. Modifications, etc. Any renewal, extension, increase,
modification, alteration or rearrangement of all or any part of the Obligations,
or any Credit Document or any loan agreement, security agreement, collateral
document or other document, instrument, contract or understanding between
Borrower and Agent or any Purchaser or any other parties, pertaining to the
Obligations;

         Section 2.02. Adjustment, etc. Any adjustment, indulgence, forbearance
or compromise that might be granted or given by Agent or any Purchaser to the
Borrower;

         Section 2.03. Condition of Borrower. The insolvency, bankruptcy,
arrangement, adjustment, composition, liquidation, disability, dissolution or
lack of power of Borrower or any

                                       5

<PAGE>

other party at any time liable for the payment of all or part of the
Obligations; or any dissolution of Borrower, or any sale, lease or transfer of
any or all of the assets of Borrower, or any changes in the shareholders of
Borrower; or any reorganization of Borrower;

         Section 2.04. Invalidity of Obligations. The invalidity, illegality or
unenforceability of all or any part of the Obligations, or any document or
agreement executed in connection with the Obligations, for any reason
whatsoever, including without limitation the fact that (a) the Obligations, or
any part thereof, exceeds the amount permitted by law, (b) the act of creating
the Obligations or any part thereof is ultra vires, (c) the officers or
representatives executing the documents creating the Obligations acted in excess
of their authority, (d) the Obligations violate applicable usury laws, (e)
Borrower has valid defenses, claims or offsets (whether at law, in equity or by
agreement) which render the Obligations wholly or partially uncollectible from
Borrower, (f) the creation, performance or repayment of the Obligations (or the
execution, delivery and performance of any document or instrument representing
part of the Obligations or executed in connection with the Obligations, or given
to secure the repayment of the Obligations) is illegal, uncollectible or
unenforceable, or (g) the documents or instruments pertaining to the Obligations
have been forged or otherwise are irregular or not genuine or authentic;

         Section 2.05. Release of Obligors. Any full or partial release of the
liability of Borrower on the Obligations or any part thereof, or of any
co-guarantors, or any other person or entity now or hereafter liable, whether
directly or indirectly, jointly, severally, or jointly and severally, to pay,
perform, guarantee or assure the payment of the Obligations or any part thereof,
it being recognized, acknowledged and agreed by each Guarantor that such
Guarantor may be required to pay the Obligations in full, without assistance or
support of any other Guarantor or any other party, and no Guarantor has been
induced to enter into this Guaranty on the basis of a contemplation, belief,
understanding or agreement that other parties will be liable to perform the
Obligations, or that Agent or any Purchaser will look to other parties to
perform the Obligations;

         Section 2.06. Other Security. The taking or accepting of any other
security, collateral or guaranty, or other assurance of payment, for all or any
part of the Obligations;

         Section 2.07. Release of Collateral, etc. Any release, surrender,
exchange, subordination, deterioration, waste, loss or impairment of any
collateral, property or security, at any time existing in connection with, or
assuring or securing payment of, all or any part of the Obligations;

         Section 2.08. Care and Diligence. The failure of Agent or any Purchaser
or any other party to exercise diligence or reasonable care in the preservation,
protection, enforcement, sale or other handling or treatment of all or any part
of such collateral, property, or security;

         Section 2.09. Status of Liens. The fact that any collateral, security,
security interest or lien contemplated or intended to be given, created or
granted as security for the repayment of the Obligations shall not be properly
perfected or created, or shall prove to be unenforceable or subordinate to any
other security interest or lien, it being recognized and agreed by each
Guarantor that such Guarantor is not entering into this Guaranty in reliance on,
or in contemplation of the benefits of, the validity, enforceability,
collectibility or value of any collateral for the Obligations;

                                       6

<PAGE>

         Section 2.10. Offset. The Obligations, and the liabilities and
obligations of each Guarantor to Agent hereunder, shall not be reduced,
discharged or released because of or by reason of any existing or future right
of offset, claim or defense of Borrower against Agent, any Purchaser or any
other party, or against payment of the Obligations, whether such right of
offset, claim or defense arises in connection with the Obligations (or the
transactions creating the Obligations) or otherwise;

         Section 2.11. Merger. The reorganization, merger or consolidation of
Borrower into or with any other entity;

         Section 2.12. Preference. Any payment by Borrower to Agent or any
Purchaser is held to constitute a preference under bankruptcy laws, or for any
reason any Purchaser is required to refund such payment or pay such amount to
Borrower or someone else; or

         Section 2.13. Other Actions Taken or Omitted. Any other action taken or
omitted to be taken with respect to the Obligations, or security and collateral
therefor, if any, whether or not such action or omission prejudices any
Guarantor or increases the likelihood that such Guarantor will be required to
pay the Obligations pursuant to the terms hereof. IT IS THE UNAMBIGUOUS AND
UNEQUIVOCAL INTENTION OF EACH GUARANTOR THAT SUCH GUARANTOR SHALL BE OBLIGATED
TO PAY THE OBLIGATIONS WHEN DUE UP TO ITS MAXIMUM GUARANTEED AMOUNT,
NOTWITHSTANDING ANY OCCURRENCE, CIRCUMSTANCE, EVENT, ACTION, OR OMISSION
WHATSOEVER, (INCLUDING, WITHOUT LIMITATION, THE UNENFORCEABILITY OF THE
OBLIGATIONS AGAINST THE BORROWER) WHETHER OR NOT CONTEMPLATED, AND WHETHER OR
NOT OTHERWISE OR PARTICULARLY DESCRIBED HEREIN, EXCEPT FOR THE FULL AND FINAL
PAYMENT AND SATISFACTION OF THE OBLIGATIONS.

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

         To induce the Purchasers to extend credit to Borrower, each Guarantor
represents and warrants to Agent that:

         Section 3.01. Familiarity and Reliance. Such Guarantor is familiar
with, and has independently reviewed books and records regarding the financial
condition of Borrower and the terms of the Obligations and the Purchase
Documents;

         Section 3.02. No Representation by Agent or any Purchaser. Neither
Agent, any Purchaser nor any other party has made any representation, warranty
or statement to such Guarantor in order to induce such Guarantor to execute this
Guaranty;

         Section 3.03. Guarantor's Financial Condition. As of the date hereof,
and after giving effect to this Guaranty and the contingent obligation evidenced
hereby, as limited in Section 1.01 hereof, such Guarantor is, and will be,
solvent, and has and will have assets which, fairly valued,

                                       7

<PAGE>

exceed its obligations, liabilities and debts, and has property and assets
sufficient to satisfy and repay its obligations and liabilities as they mature;

         Section 3.04. Benefit. Such Guarantor has received, or will receive,
direct or indirect benefit from the making of this Guaranty and the Obligations.

         Section 3.05. Directors' Determination of Benefit. Such Guarantor's
board of directors, acting pursuant to a duly called and constituted meeting,
after proper notice, or pursuant to a valid unanimous consent, has determined
that this Guaranty directly or indirectly benefits such Guarantor and is in its
best interests.

         Section 3.06. Legality. The execution, delivery and performance by such
Guarantor of this Guaranty and the consummation of the transactions contemplated
hereunder (a) have been duly authorized by all necessary corporate and
stockholder action, or limited liability company or member action, as the case
may be, of such Guarantor, and (b) do not, and will not, contravene or conflict
with any law, statute or regulation whatsoever to which such Guarantor is
subject or constitute a default (or an event which with notice or lapse of time
or both would constitute a default) under, or result in the breach of, any
material indenture, mortgage, deed of trust, charge, lien, or any material
contract, agreement or other instrument to which such Guarantor is a party or
which may be applicable to such Guarantor or any of its assets, or violate any
provisions of its Articles (or Certificate) of Incorporation or Organization, as
the case may be, Bylaws or Operating Agreement, as the case may be, or any other
organizational document of such Guarantor; this Guaranty is a legal, valid and
binding obligation of such Guarantor and is enforceable in accordance with its
terms, except as limited by bankruptcy, insolvency or other laws of general
application relating to the enforcement of creditors' rights;

         Section 3.07. Organization and Good Standing. Each Guarantor (a) is,
and will continue to be, a legal entity duly organized, validly existing, and in
good standing under the laws of the state in which it is organized, and (b)
possesses all requisite power and authority to execute and deliver and comply
with the terms of this Guaranty; and

         Section 3.08. Survival. All representations and warranties made by such
Guarantor herein shall survive the execution hereof.

                                   ARTICLE IV

                      SUBORDINATION OF CERTAIN INDEBTEDNESS

         Section 4.01. Subordination of All Guarantor Claims. As used herein,
the term "Guarantor Claims" shall mean all debts and liabilities of Borrower to
any Guarantor, whether such debts and liabilities now exist or are hereafter
incurred or arise, or whether the obligations of Borrower thereon be direct,
contingent, primary, secondary, several, joint and several, or otherwise, and
irrespective of whether such debts or liabilities be evidenced by note,
contract, open account, or otherwise, and irrespective of the person or persons
in whose favor such debts or liabilities may, at their inception, have been, or
may hereafter be created, or the manner in which they have been or may hereafter
be acquired by Grantor. Until all commitments of any

                                       8

<PAGE>

Purchaser to extend credit to Borrower shall have been terminated and the
Obligations shall be indefeasibly paid and satisfied in full, and in cash as to
monetary Obligations, and each Guarantor shall have performed all of its
obligations hereunder, no Guarantor shall receive or collect, directly or
indirectly, from Borrower or any other party any amount upon the Guarantor
Claims.

         Section 4.02. Claims in Bankruptcy. In the event of receivership,
bankruptcy, reorganization, arrangement, debtor's relief, or other insolvency
proceedings involving Borrower as debtor, Agent and each Purchaser shall have
the right to prove the Guarantors' claims in any such proceeding so as to
establish the Guarantors' rights hereunder and receive directly from the
receiver, trustee or other court custodian dividends and payments which would
otherwise be payable upon Guarantor Claims. Each Guarantor hereby assigns such
dividends and payments to Agent for the benefit of the Purchasers.

         Section 4.03. Payments Held in Trust. In the event that,
notwithstanding SECTIONS 4.01 and 4.02 above, any Guarantor should receive any
funds, payment, claim or distribution which is prohibited by such Sections, each
Guarantor agrees to hold in trust for Agent an amount equal to the amount of all
funds, payments, claims or distributions so received, and agrees that it shall
have absolutely no dominion over the amount of such funds, payments, claims or
distributions, except to pay them promptly to Agent, and each Guarantor
covenants promptly to pay the same to Agent.

         Section 4.04. Liens Subordinate. Each Guarantor agrees that any liens,
security interests, judgment liens, charges or other encumbrances upon
Borrower's assets securing payment of the Guarantor Claims shall be and remain
inferior and subordinate to any liens, security interests, judgment liens,
charges or other encumbrances upon Borrower's assets securing payment of the
Obligations, regardless of whether such encumbrances in favor of such Guarantor,
Agent or any Purchaser presently exist or are hereafter created or attached.
Without the prior written consent of Agent, no Guarantor shall (a) exercise or
enforce any creditor's right it may have against Borrower, or (b) foreclose,
repossess, sequester or otherwise take steps or institute any action or
proceedings (judicial or otherwise, including without limitation the
commencement of, or joinder in, any liquidation, bankruptcy, rearrangement,
debtor's relief or insolvency proceeding) to enforce any liens, mortgages, deeds
of trust, security interest, collateral rights, judgments or other encumbrances
on assets of Borrower held by such Guarantor.

         Section 4.05. Notation of Records. All promissory notes, accounts
receivable ledgers or other evidences of the Guarantor Claims accepted by or
held by any Guarantor shall contain a specific written notice thereon that the
indebtedness evidenced thereby is subordinated under the terms of this Guaranty.

         Section 4.06. Disgorged Payments. If after receipt of any payment of
all or any part of the Obligations, Agent or any Purchaser is for any reason
compelled to surrender such payment to any person or entity because such payment
is determined to be void or voidable as a preference, impermissible setoff, or a
diversion of trust funds, or for any reason, this Guaranty shall continue in
full force notwithstanding any contrary action which may have been taken by
Agent or any Purchaser in reliance upon such payment, and any such contrary
action so taken

                                       9

<PAGE>

shall be without prejudice to the rights of Agent any Purchaser under this
Guaranty and shall be deemed to have been conditioned upon such payment having
become final and irrevocable.

                                    ARTICLE V

                                  MISCELLANEOUS

         Section 5.01. Waiver. No failure to exercise, and no delay in
exercising, on the part of Agent or any Purchaser, any right hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise thereof
preclude any other or further exercise thereof or the exercise of any other
right. The rights of Agent and the Purchasers hereunder shall be in addition to
all other rights provided by law. No modification or waiver of any provision of
this Guaranty, nor consent to departure therefrom, shall be effective unless in
writing and signed by Agent and no such consent or waiver shall extend beyond
the particular case and purpose involved. No notice or demand given in any case
shall constitute a waiver of the right to take other action in the same, similar
or other instances without such notice or demand.

         Section 5.02. Notices. Any notices or other communications required or
permitted to be given by this Guaranty must be given in writing and in the
manner and at the addresses set forth in the Note Agreement.

         Section 5.03. Usury Compliance. It is the intention of Borrower, each
Guarantor, Agent, and each Purchaser to confirm strictly to applicable usury
laws. Accordingly, no agreements, conditions, provisions or stipulations
contained in this Guaranty or any other instrument, document or agreement
between any Guarantor or Borrower and Agent, or any Purchaser or default of any
Guarantor or Borrower, or the exercise by Agent or any Purchaser of the right to
accelerate the payment of the maturity of principal and interest, or to exercise
any option whatsoever contained in this Guaranty or any other agreement between
any Guarantor or Borrower and Agent and each Purchaser, or the arising of any
contingency whatsoever, shall entitle Agent or any Purchaser to collect, in any
event, interest exceeding the maximum rate of interest permitted by applicable
state or federal law in effect from time to time hereafter (the "Maximum Legal
Rate") and in no event shall any Guarantor be obligated to pay interest
exceeding such Maximum Legal Rate and all agreements, conditions or
stipulations, if any, which may in any event or contingency whatsoever operate
to bind, obligate or compel any Guarantor to pay a rate of interest exceeding
the Maximum Legal Rate, shall be without binding force or effect, at law or in
equity, to the extent only of the excess of interest over such Maximum Legal
Rate. In the event any interest is charged in excess of the Maximum Legal Rate
("Excess"), each Guarantor acknowledges and stipulates that any such charge
shall be the result of an accident and bona fide error, and such Excess shall
be, first applied to reduce the Obligations; and second, returned to the
respective Guarantor, it being the intention of the parties hereto not to enter
at any time into a usurious or otherwise illegal relationship. Each Guarantor
recognizes that, with fluctuations in the applicable rate on the Obligations and
the Maximum Legal Rate, such an unintentional result could inadvertently occur.
By the execution of this Guaranty, each Guarantor covenants that the credit or
return of any Excess shall constitute the acceptance by such Guarantor of such
Excess.

                                       10

<PAGE>

         SECTION 5.04. CHOICE OF LAW; FORUM SELECTION. THIS GUARANTY AND THE
OTHER PURCHASE DOCUMENTS ARE BEING EXECUTED AND DELIVERED, AND ARE INTENDED TO
BE PERFORMED IN THE STATE OF MARYLAND. EXCEPT TO THE EXTENT THAT THE LAWS OF THE
UNITED STATES MAY APPLY TO THE TERMS OF THIS AGREEMENT OR ANY OTHER CREDIT
DOCUMENT, THE SUBSTANTIVE LAWS OF THE STATE OF MARYLAND SHALL GOVERN THE
VALIDITY, CONSTRUCTION, ENFORCEMENT AND INTERPRETATION OF THIS GUARANTY. ANY
LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTY MAY BE BROUGHT IN ANY
STATE OR FEDERAL COURT IN THE STATE OF MARYLAND, AND, BY EXECUTION AND DELIVERY
OF THIS GUARANTY, EACH GUARANTOR HEREBY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE
AFORESAID COURT.

         Section 5.05. Invalid Provisions. In the case any one or more of the
provisions contained in this Guaranty should be invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained therein shall not in any way be affected thereby,
unless such continued effectiveness of this Guaranty, as modified, would be
contrary to the basic understandings and intentions of the parties as expressed
herein.

         Section 5.06. Parties Bound. This Guaranty shall be binding upon and
inure to the benefit of the parties hereto and their respective successors,
assigns and legal representatives; provided, however, that no Guarantor may,
without the prior written consent of Agent, assign any of its rights, powers,
duties or obligations hereunder.

         Section 5.07. Headings. Section headings are for convenience of
reference only and shall in no way affect the interpretation of this Guaranty.

         Section 5.08. Multiple Counterparts. This Guaranty may be executed in
multiple counterparts, all of which taken together shall constitute one and the
same agreement, and any of the parties hereto may execute this Guaranty by
signing any counterpart.

         Section 5.09. Rights and Remedies. If any Guarantor becomes liable for
any indebtedness owing by Borrower to Agent or any Purchaser, by endorsement or
otherwise, other than under this Guaranty, such liability shall not be in any
manner impaired or affected hereby and the rights of Agent hereunder shall be
cumulative of any and all other rights that Agent may ever have against such
Guarantor. The exercise by Agent of any right or remedy hereunder or under any
other instrument, or at law or in equity, shall not preclude the concurrent or
subsequent exercise of any other right or remedy.

         SECTION 5.10. INDEMNITY. EACH GUARANTOR HEREBY AGREES TO INDEMNIFY,
HOLD HARMLESS, AND DEFEND AGENT AND ITS RESPECTIVE DIRECTORS, OFFICERS, AGENTS,
COUNSEL AND EMPLOYEES ("INDEMNIFIED PERSONS") FROM AND AGAINST ANY AND ALL
LOSSES, LIABILITIES, DAMAGES, COSTS, EXPENSES (INCLUDING, WITHOUT LIMITATION,

                                       11

<PAGE>

ATTORNEYS' FEES AND EXPENSES), SUITS, ACTIONS AND PROCEEDINGS ("LOSSES") EVER
SUFFERED OR INCURRED BY ANY INDEMNIFIED PERSON ARISING OUT OF OR RELATING TO
THIS GUARANTY, ANY OTHER CREDIT DOCUMENT OR ANY OTHER TRANSACTION CONTEMPLATED
HEREBY AND THEREBY, INCLUDING, WITHOUT LIMITATION, ANY LOSSES CAUSED BY THE
NEGLIGENCE OF SUCH INDEMNIFIED PERSON, BUT NOT INCLUDING ANY LOSSES CAUSED BY
THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNIFIED PERSON, AND EACH
GUARANTOR SHALL REIMBURSE AGENT AND EACH OTHER INDEMNIFIED PERSON FOR ANY
EXPENSES (INCLUDING IN CONNECTION WITH THE INVESTIGATION OF, PREPARATION FOR OR
DEFENSE OF ANY ACTUAL OR THREATENED CLAIM, ACTION OR PROCEEDING ARISING HEREFROM
AND THEREFROM, INCLUDING ANY SUCH COSTS OF RESPONDING TO DISCOVERY REQUESTS OR
SUBPOENAS, REGARDLESS OF WHETHER AGENT OR SUCH OTHER INDEMNIFIED PERSON IS A
PARTY THERETO). WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THIS INDEMNITY
SHALL EXTEND TO ANY CLAIMS ASSERTED AGAINST AGENT OR ANY OTHER INDEMNIFIED
PERSON BY ANY PERSON OR ENTITY UNDER ANY ENVIRONMENTAL LAWS OR SIMILAR LAWS BY
REASON OF THE BORROWER'S, ANY GUARANTOR'S OR ANY OTHER PERSON'S OR ENTITY'S
FAILURE TO COMPLY WITH LAWS APPLICABLE TO SOLID OR HAZARDOUS WASTE MATERIALS OR
OTHER TOXIC SUBSTANCES. NOTWITHSTANDING ANY CONTRARY PROVISION OF THIS GUARANTY,
THE OBLIGATION OF EACH GUARANTOR UNDER THIS SECTION 5.10 SHALL SURVIVE THE
PAYMENT IN FULL OF THE BORROWER'S OBLIGATIONS UNDER THE NOTE AGREEMENT AND THE
TERMINATION OF THE NOTE AGREEMENT AND THIS GUARANTY.

         Section 5.11. Additional Guarantors. Any Person that becomes a
Subsidiary of Borrower subsequent to the date hereof and that was not a
"Guarantor" under this Guaranty at the time of initial execution hereof shall
become a "Guarantor" hereunder by executing and delivering to Agent an
Additional Subsidiaries Supplement in the form attached hereto as Exhibit A. Any
such Subsidiary shall thereafter be deemed a "Guarantor" for all purposes under
this Guaranty.

         Section 5.12. Intercreditor Agreement. In the event of any conflict
between the terms, conditions, covenants, or agreements contained herein and in
the Intercreditor Agreement, the terms, conditions, covenants and agreements
contained in the Intercreditor Agreement shall control. Notwithstanding anything
to the contrary contained herein, (a) each exercise of rights or remedies in
respect of the Obligations hereunder by Agent or the Purchasers shall be subject
to, and shall only be made in accordance with, the Intercreditor Agreement and
(b) any and all amounts collected by Agent or any Purchaser hereunder shall,
subject to the terms of the Intercreditor Agreement, be immediately applied to
the Obligations in the order specified in Article 3 of the Note Agreement.

         SECTION 5.13. NOTICE OF FINAL AGREEMENT. THIS GUARANTY CONSTITUTES A
WRITTEN AGREEMENT WHICH REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES. SUCH
WRITTEN AGREEMENT MAY

                                       12

<PAGE>

NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES RELATING TO THIS GUARANTY.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       13

<PAGE>

         EXECUTED as of the day and year first above written.

                                         GUARANTORS:

                                         CHECK EXPRESS, INC.
                                         Q. C. & G. FINANCIAL, INC.
                                         PUBLIC CURRENCY, INC.
                                         CHECK EXPRESS FLORIDA, INC.
                                         CHECK EXPRESS FINANCE, INC.
                                         CHECK-X-CHANGE CORPORATION
                                         CHECK EXPRESS SOUTH CAROLINA, INC.
                                         CHECK EXPRESS USA, INC.

                                         By:____________________________________
                                            Name:
                                            Time:

         ACKNOWLEDGED AND AGREED TO:

         BORROWER:

         ACE CASH EXPRESS, INC.

         By:_______________________________
            Name:
            Title:

                                       14

<PAGE>

EXHIBIT A

                       ADDITIONAL SUBSIDIARIES SUPPLEMENT

         THIS ADDITIONAL SUBSIDIARIES SUPPLEMENT, dated [_________], to the
Unconditional Guaranty Agreement, dated as of [_________], 2003 (as amended,
supplemented and otherwise modified, the "Guaranty Agreement"), made by certain
Subsidiaries of ACE Cash Express, Inc., a Texas corporation ("Borrower"), in
favor of American Capital Financial Services, Inc., as Agent, from time to time
parties hereto (collectively, the "Guarantors").

                                   WITNESSETH:

         WHEREAS, the Guaranty Agreement provides that any Subsidiary of
Borrower, although not a Guarantor thereunder at the time of the initial
execution thereof, may become a Guarantor under the Guaranty Agreement upon the
delivery to Agent of a supplement in substantially the form of this Additional
Subsidiaries Supplement; and

         WHEREAS, the undersigned was not a Subsidiary of Borrower on the date
of the Guaranty Agreement and, therefore, was not a party to the Guaranty
Agreement but now desires to become a Guarantor thereunder;

         NOW, THEREFORE, the undersigned hereby agrees as follows:

         The undersigned agrees to be bound by all of the provisions of the
Guaranty Agreement applicable to a Guarantor thereunder and agrees that it
shall, on the date this Additional Subsidiaries Supplement is accepted by Agent,
become a Guarantor, for all purposes of the Guaranty Agreement to the same
extent as if originally a party thereto with the representations and warranties
contained therein being deemed to be made by the undersigned as of the date
hereof.

         Unless otherwise defined herein, capitalized terms which are defined in
the Guaranty Agreement are used herein as so defined.

         IN WITNESS WHEREOF, the undersigned has caused this Additional
Subsidiaries Supplement to be executed and delivered by a duly authorized
officer on the date first above written.

                                            [NAME OF SUBSIDIARY]

                                            By:_________________________________
                                            Name:_______________________________
                                            Title:______________________________

<PAGE>

EXHIBIT E

                           COLLATERAL AGENCY AGREEMENT

         This COLLATERAL AGENCY (this "Agreement") dated as of March 31, 2003 is
by and among ACE CASH EXPRESS, INC. (doing business sometimes under the name of
Ace America's Cash Express), a Texas corporation (the "Debtor"), WELLS FARGO
BANK TEXAS, NATIONAL ASSOCIATION ("WFB"), as Administrative Agent (WFB in such
capacity, the "Bank Agent") for the lenders from time to time a party to the
Bank Agreement (as hereinafter defined), AMERICAN CAPITAL FINANCIAL SERVICES,
INC., a Delaware corporation ("ACFS"), as Administrative Agent (ACFS in such
capacity, the "ACFS Agent") for the purchasers time to time party to the ACFS
Note Agreement (as hereinafter defined), TRAVELERS EXPRESS COMPANY, INC., a
Minnesota corporation ("Travelers"), and WILMINGTON TRUST COMPANY, a Delaware
banking corporation (the "Collateral Agent").

                                   WITNESSETH:

         WHEREAS, the Debtor, Bank Agent, certain other parties in other
capacities, and certain lenders (the "Lenders") have entered into that certain
Credit Agreement of even date herewith (as amended, supplemented, restated or
otherwise modified from time to time, the "Bank Agreement");

         WHEREAS, the Debtor, ACFS Agent and certain purchasers (the
"Purchasers") have entered into that certain Note Purchase Agreement of even
date herewith (as amended, supplemented, restated or otherwise modified from
time to time, the "ACFS Note Agreement");

         WHEREAS, the Debtor and Travelers have entered into that certain Money
Order Agreement dated April 16, 1998, pursuant to which Travelers has agreed to
serve as Debtor's money order supplier (as amended, supplemented, restated or
otherwise modified from time to time, the "Money Order Agreement"); and the
Debtor and Travelers have entered into that certain Money Transfer Agreement
dated June 30, 2000, pursuant to which Travelers has agreed to serve as the
Debtor's money transfer service supplier (as amended, supplemented, restated or
otherwise modified from time to time, the "Money Transfer Agreement"), and the
Debtor and Travelers have entered into that certain Bill Payment Processing and
Funds Transfer Services Agreement dated April 1, 1998, pursuant to which
Travelers has agreed to serve as the Debtor's bill payment processing supplier
(as amended, supplemented, restated or otherwise modified from time to time, the
"Bill Payment Agreement", and together with the Money Order Agreement and the
Transfer Agreement, the "Travelers Agreements");

         WHEREAS, in order to secure the payment and performance of its
obligations to the Collateral Agent under this Agreement, Debtor has entered
into that certain Assignment of Deposit Accounts and Security Agreement of even
date herewith (as from time to time amended, supplemented, restated or otherwise
modified, the "Collateral Agent Security Agreement"), pursuant to which the
Debtor has assigned the Subject Deposit Accounts (as such term is defined below)
to Collateral Agent;

<PAGE>

         WHEREAS, in order to secure the payment and performance of its
obligations to the Bank Agent and the Lenders, Debtor has entered into that
certain Assignment of Deposit Accounts and Security Agreement of even date
herewith (as from time to time amended, supplemented, restated or otherwise
modified, the "Bank Security Agreement"), pursuant to which Debtor has assigned
certain of its deposit accounts, including but not limited to the Subject
Deposit Accounts (collectively, the "Deposit Accounts"), and granted a security
interest in certain of its assets (collectively, the "Collateral") to Bank Agent
for the benefit of the Bank Agent and the Lenders;

         WHEREAS, in order to secure the payment and performance of its
obligations to the ACFS Agent and the Purchasers, Debtor has entered into that
certain Assignment of Deposit Accounts and Security Agreement of even date
herewith (as from time to time amended, supplemented, restated or otherwise
modified, the "ACFS Security Agreement"), pursuant to which, subject to the
security interests granted under the Bank Security Agreement, Debtor has
assigned the Deposit Accounts and granted a security interest in the Collateral
to ACFS Agent for the benefit of the ACFS Agent and the Lenders;

         WHEREAS, in order to secure the payment and performance of its
obligations to Travelers, Debtor has entered into that certain Assignment of
Deposit Accounts and Security Agreement of even date herewith (as from time to
time amended, supplemented, restated or otherwise modified, the "Travelers
Security Agreement"; the Collateral Agent Security Agreement, the Bank Security
Agreement, the ACFS Security Agreement, and the Travelers Security Agreement, as
from time to time amended, supplemented, restated, or otherwise modified, are
collectively referred to herein as the "Subject Security Agreements" and each
individually as a "Subject Security Agreement"), pursuant to which, subject to
the security interests granted under the Bank Security Agreement and the ACFS
Security Agreement, Debtor has assigned the Deposit Accounts and granted a
security interest in the Collateral to Travelers;

         WHEREAS, Debtor, Bank Agent, ACFS Agent, and Travelers have entered
into that certain Intercreditor Agreement of even date herewith (as from time to
time amended, supplemented, restated, or otherwise modified, the "Intercreditor
Agreement"), pursuant to which Bank Agent, ACFS Agent, and Travelers
memorialized agreements, without limitation, with respect to the application of
the proceeds of the Collateral upon foreclosure thereon and with respect to the
subordination of the rights of ACFS Agent and Travelers in the Collateral to the
rights of Bank Agent in the Collateral;

         WHEREAS, prior the date hereof, the Collateral Agent has entered into
agreements with the depository institutions which maintain the Subject Deposit
Accounts (the "Depository Institutions"), pursuant to which the Depository
Institutions have agreed to follow the instructions of the Trustee with respect
to the Subject Deposit Accounts;

         WHEREAS, it is a condition precedent to the extension of credit under
the Bank Agreement and the ACFS Note Agreement and to Travelers' obligations
under the Money Order Agreement that the Debtor, the Collateral Agent, Bank
Agent (on behalf of itself and the Lenders), ACFS Agent (on behalf of itself and
the Purchasers), and Travelers enter into this Agreement, pursuant to which
Collateral Agent shall be appointed collateral agent for itself, the Bank Agent,
on behalf of itself and the Lenders, ACFS Agent, on behalf of itself and the

                                       2
<PAGE>

Purchasers, and Travelers solely with respect to the Subject Deposit Accounts
and pursuant to which the Collateral Agent shall agree to follow the
instructions originated by the Bank Agent or the ACFS Agent with respect to the
Depository Institutions and the Subject Deposit Accounts;

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, in order to induce the Lenders under the Bank
Agreement, and the Purchasers under the ACFS Note Agreement, to extend credit
thereunder, and in order to induce Travelers to perform its obligations under
the Money Order Agreement, the parties hereto, intending to be legally bound,
agree as follows:

                                    SECTION 1

                          DEFINITIONS AND OTHER MATTERS

         (a) Capitalized terms used but not defined herein shall have the
meanings given to them in the Intercreditor Agreement.

         (b) As used in this Agreement, the following terms shall have the
following meanings (such meanings to be equally applicable to both the singular
and plural forms of the terms defined):

         "ACFS Agent" shall mean American Capital Financial Services, Inc., a
Delaware corporation, in its capacity as Agent under the ACFS Note Agreement,
and its successors and assigns in such capacity.

         "ACFS Note Agreement" shall have the meaning set forth in the recitals
to this Agreement.

         "Agreement" shall mean this Collateral Agency Agreement, as it may be
amended, restated or otherwise modified from time to time.

         "Bank Agent" shall mean WFB and any successor Administrative Agent
appointed pursuant to the terms of the Bank Agreement.

         "Bank Agreement" shall have the meaning set forth in the recitals to
this Agreement.

         "Collateral Agent" shall mean Wilmington Trust Company, a Delaware
banking corporation, and its successors and assigns as provided herein.

         "Collateral Agent's Fees" shall mean all fees, costs and expenses of
the Collateral Agent of the types described in Sections 5.1, 5.2, 5.3, and 5.4
of this Agreement.

         "Collateral Agent's Liens" shall mean all liens and security interests
against any of the property or assets of the Debtor or its Subsidiaries which
result from (i) claims against the Collateral Agent unrelated to the
transactions contemplated by this Agreement and the Subject Security Documents
or (ii) affirmative acts by the Collateral Agent creating a lien or security
interest other than as contemplated by this Agreement or the Subject Security
Documents.

                                       3
<PAGE>

         "Debtor" shall mean Ace Cash Express Inc., a Texas corporation, and all
other trade names under which Ace Cash Express Inc. transacts business as
identified on Schedule 2 to the Intercreditor Agreement.

         "Depository" shall mean each financial institution at which a Subject
Deposit Account is maintained.

         "Intercreditor Agreement" shall have the meaning given to such term in
the recitals hereto.

         "Letter Agreement" shall mean any written agreement or other
authenticated record, whether executed prior to, on, or after the date hereof,
pursuant to which any Depository has agreed to follow the instructions of the
Collateral Agent with respect to any Subject Deposit Account maintained by such
Depository.

         "Letter of Termination" shall mean a letter substantially in the form
of Exhibit A attached hereto.

         "Secured Parties" shall mean, collectively, the Collateral Agent, the
Bank Agent (for the benefit of itself and the Lenders), the ACFS Agent (for the
benefit of itself and the Purchasers), and Travelers.

         "Subject Collateral" shall mean each Subject Deposit Account, all
property contained in each Subject Deposit Account, and all Proceeds thereof.

         "Subject Deposit Accounts" shall mean each demand, time, savings,
passbook and other like accounts (including any account evidenced by a
certificate of deposit), whether interest-bearing or not, and if
interest-bearing then all interest accrued and paid or payable thereon,
maintained by the Debtor that are identified on Schedule 1 hereto, and all
moneys from time to time in or credited to any and all such deposit accounts,
including all earnings or profits therefrom in the form of interest or
otherwise.

         "Subject Security Agreement" shall have the meaning given to such term
in the recitals hereto.

         "Subject Security Documents" shall mean each Security Agreement and any
additional documents executed to reflect the grant to any Secured Party of a
lien upon or security interest in any Subject Collateral, as the same may be
amended, supplemented or otherwise modified from time to time in accordance with
their respective terms.

         "Travelers" shall mean Travelers Express Company, Inc., a Minnesota
corporation.

         (c) The words "hereof," "herein" and "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement and section references are to
this Agreement unless otherwise specified.

                                       4
<PAGE>

         (d) All terms defined in this Agreement in the singular shall have
comparable meanings when used in the plural, and vice versa, unless otherwise
specified.

                                    SECTION 2

     APPOINTMENT OF COLLATERAL AGENT; CERTAIN OBLIGATIONS AND DUTIES OF THE
               COLLATERAL AGENT AND THE DEBTOR; POWERS OF ATTORNEY

         Section 2.1. Appointment of Collateral Agent; Authorization to Execute
Subject Security Documents; Other Authority. In order to expedite the
enforcement of the rights and remedies set forth herein and in the Subject
Security Documents and in order to take such other actions with respect to the
Subject Collateral as specifically set forth herein and in the Subject Security
Documents, the Collateral Agent is hereby appointed to act as agent hereunder
and thereunder for itself, the Bank Agent, the Lenders, the ACFS Agent, the
Purchasers, and Travelers. The Collateral Agent is hereby authorized to take
such action on behalf of the Secured Parties under the terms and provisions of
the Subject Security Documents and to exercise such rights and remedies
hereunder and thereunder as are specifically delegated to or required of the
Collateral Agent under the terms and provisions hereof and thereof. The
Collateral Agent is hereby expressly further authorized on behalf of the Secured
Parties, and in each case subject to and in accordance with the terms of this
Agreement and the Intercreditor Agreement:

         (a) to follow all instructions originated under Section 2.3 by the Bank
Agent or the ACFS Agent or Travelers, as the case may be, with respect or
relating to the Depositories, the Subject Security Agreements, the Subject
Collateral, or the Letter Agreements;

         (b) to receive on behalf of each of the Secured Parties any payment of
monies paid to the Collateral Agent in accordance herewith or with the Subject
Security Documents, and to distribute all payments so received in accordance
with the terms of this Agreement;

         (c) to receive all documents and items to be furnished under the
Subject Security Documents;

         (d) to maintain physical possession of any of the Subject Collateral as
contemplated in any of the Subject Security Documents;

         (e) to act on behalf of the Secured Parties in and under the Subject
Security Documents;

         (f) to execute and deliver to the Secured Parties, the Debtor and its
Subsidiaries and others requests, demands, notices, approvals, consents and
other communications received from the Secured Parties in connection herewith
and with the Subject Security Documents, subject to the terms and conditions set
forth herein and therein;

                                       5
<PAGE>

         (g) to the extent permitted by this Agreement and the Subject Security
Documents, to exercise on behalf of each Secured Party all remedies of the
Secured Parties under the Subject Security Documents; and

         (h) to take such other actions, subject to Section 2.3, as may be
requested by the Secured Parties in accordance herewith or as are reasonably
incident to any powers granted to the Collateral Agent hereunder and not in
conflict with applicable law or regulation.

         Section 2.2. Certain Representations and Warranties. The Collateral
Agent, in its capacity as collateral agent hereunder, and Wilmington Trust
Company, in its individual capacity, each represent and warrant to the Secured
Parties as follows:

         (a) Wilmington Trust Company is a banking corporation duly
incorporated, validly existing and in good standing under the laws of its
jurisdiction of incorporation and has all requisite corporate power and
authority to enter into and perform its obligations under this Agreement and the
Subject Security Documents to which it is a party.

         (b) The execution, delivery and performance by the Collateral Agent of
this Agreement and the Subject Security Documents to which it is a party have
been duly authorized by all necessary corporate action on the part of Wilmington
Trust Company.

         (c) There are no Collateral Agent's Liens and Wilmington Trust Company,
in its individual capacity and not in its capacity as Collateral Agent
hereunder, has no liens or security interests against the Subject Collateral.

         (d) There are no actions or proceedings pending or, to the actual
knowledge of any officers of Wilmington Trust Company's Corporate Trust
Administration, threatened against it before any Governmental Authority (i)
which question the validity or enforceability of this Agreement or any Subject
Security Documents to which it is a party; or (ii) which relate to the banking
or trust powers of Wilmington Trust Company and which, if determined adversely
to the position of Wilmington Trust Company, would materially and adversely
affect the ability of Wilmington Trust Company or the Collateral Agent to
perform their respective obligations under this Agreement or any of the Subject
Security Documents to which any one or more of them is a party.

         (e) This Agreement and each of the Subject Security Documents to which
the Collateral Agent is a party have been duly executed and delivered by the
Collateral Agent (assuming, with respect to the Subject Security Documents, that
this Agreement has been duly authorized, executed and delivered by the other
parties hereto) and are the legal, valid and binding obligations of the
Collateral Agent enforceable in accordance with their terms, except to the
extent enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent transfer or other similar laws affecting
the enforcement of creditors' rights generally and by the effect of general
principles of equity (regardless of whether such enforceability is considered in
a proceeding in equity or at law).

         (f) No Uniform Commercial Code financing statements or other filings or
recordations executed by or on behalf of Wilmington Trust Company (in its
individual capacity) have been filed by or against it with respect to any of the
Subject Collateral.

                                       6
<PAGE>

         Section 2.3 Instructions to the Collateral Agent.

         (a) Collateral Agent hereby agrees to comply with all instructions
originated by the Bank Agent or ACFS Agent with respect or relating to the
Depositories, the Subject Security Agreements, the Subject Collateral or the
Letter Agreements or directing disposition of the Subject Collateral or any or
all monies, funds, checks, negotiable instruments or any other items or
properties in the Subject Deposit Accounts, in each case without joinder or
further consent by the Debtor or any other Person and as promptly after receipt
thereof as is reasonably possible so long as each such instruction is
accompanied by (i) if such instruction is originated by the Bank Agent, a
written certification from Bank Agent stating that Bank Agent is authorized to
originate such instruction under, and in accordance with, the Intercreditor
Agreement, (ii) if such instruction is originated by the ACFS Agent, a written
certification from Bank Agent stating that ACFS Agent is authorized to originate
such instruction under, and in accordance with, the Intercreditor Agreement, or
(iii) if such instruction is originated by Travelers a written certification
from Bank Agent and a written certification from ACFS Agent stating that
Travelers is authorized to originate such instruction under, and in accordance
with, the Intercreditor Agreement. Collateral Agent may fully rely upon and
shall be protected as set forth in Section 5.4 hereof in relying on any such
instruction.

         (b) Notwithstanding anything to the contrary contained in Section
2.3(a), from and after the occurrence of any Insolvency Event, Collateral Agent
hereby agrees to comply with all instructions originated by the Bank Agent or
ACFS Agent with respect or relating to the Depositories, the Subject Security
Agreements, the Subject Collateral or the Letter Agreements or directing
disposition of the Subject Collateral or any or all monies, funds, checks,
negotiable instruments or any other items or properties in the Subject Deposit
Accounts, in each case without joinder or further consent by the Debtor or any
other Person and as promptly after receipt thereof as is reasonably possible so
long as each such instruction is accompanied by a written certification from
either Bank Agent or ACFS Agent, as the case may be, stating that a court of
competent jurisdiction has authorized such Person to originate such instruction
and having attached thereto a copy of an order of such court granting to such
Person. Bank Agent, ACFS Agent, and Travelers shall notify Collateral Agent in
writing of the occurrence of an Insolvency Event.

         (c) The Collateral Agent shall not be obligated to follow any written
instructions received pursuant to this Agreement to the extent independent
counsel has advised that such written instructions are in conflict with any
provisions of law or this Agreement; provided, however, under no circumstances
shall the Collateral Agent be liable for following the written instructions of
Bank Agent or ACFS Agent at such times as such Persons do not have the authority
to act as herein provided.

         (d) Nothing in this Agreement shall impair the right of the Collateral
Agent in its discretion to take or omit to take any action deemed proper by the
Collateral Agent and which action or omission is not inconsistent with any
instruction received by the Collateral Agent in accordance with this Agreement;
provided, however, the Collateral Agent shall not be under any

                                       7
<PAGE>

obligation, as a result of this Agreement, to take any action which is
discretionary with the Collateral Agent under the provisions hereof or under any
Subject Security Document unless so instructed by the applicable Secured Parties
in accordance herewith.

         Section 2.4. Powers of Attorney. The Debtor hereby irrevocably
constitutes and appoints each Secured Party and any officer or agent thereof,
with full power of substitution, as its true and lawful attorney-in-fact with
full power and authority in the name of the Debtor or the name of such
attorney-in-fact, from time to time in such Secured Party's discretion, for the
purpose of signing documents and taking other action to perfect, promote and
protect the liens and security interests of each Secured Party in the Subject
Collateral. This power of attorney is a power coupled with an interest and shall
be irrevocable.

         Section 2.5. Copies of Letters and Documents. The Collateral Agent
shall promptly provide each Secured Party copies of any letters or documents it
receives in connection with any Subject Deposit Account, including, but not
limited to, letters and documents related to the termination or opening of any
Subject Deposit Account or the termination of, or the entering into any new
agreements with, any Depositories. In addition, if not already required to do
so, the Collateral Agent shall provide to any Secured Party, upon such Secured
Party's request, copies of any letters or documents the Collateral Agent
receives from the Debtor or any other Person in connection with this Agreement,
including additional Subject Security Documents.

                                    SECTION 3

                                    REMEDIES

         Section 3.1. Remedies.

         (a) Upon receipt of instructions pursuant to Section 2.3, the
Collateral Agent shall be entitled to exercise the rights and remedies provided
in this Section 3 and the rights and remedies provided in any of the Subject
Security Documents.

         (b) The Debtor hereby waives presentment, demand, protest or any notice
(to the extent permitted by applicable law and except as otherwise expressly
provided in this Agreement) of any kind in connection with this Agreement, any
Subject Collateral or any Subject Security Document.

         (c) The Debtor hereby irrevocably constitutes and appoints the
Collateral Agent and any officer or agent thereof, with full power of
substitution, as its true and lawful attorney-in-fact with full power and
authority in the name of the Debtor or in its own name, from time to time in
such Person's discretion, upon the occurrence and during the continuance of any
Actionable Default, for the purpose of carrying out the terms of this Agreement
and any of the Subject Security Documents, to take any and all appropriate
action and to execute any and all documents and instruments which may be
necessary or desirable to accomplish the purposes hereof and thereof and,
without limiting the generality of the foregoing, hereby gives the Collateral
Agent the power and right on behalf of the Debtor, without assent by the Debtor,
to the extent permitted by applicable law, to do the following:

                                       8
<PAGE>

        (i) to ask for, demand, sue for, collect, receive and give acquittance
    for any and all moneys due or to become due with respect to the Subject
    Collateral,

        (ii) to receive, take, endorse, assign and deliver any and all checks
    notes, drafts, acceptances, documents and other negotiable and nonnegotiable
    instruments documents and chattel paper taken or received by the Collateral
    Agent in connection herewith and therewith,

        (iii) to commence, file, prosecute, defend, settle, compromise or adjust
    any claim, suit, action or proceeding with respect to the Subject
    Collateral,

        (iv) to sell, transfer, assign or otherwise deal in or with the Subject
    Collateral or any part thereof pursuant to the terms and conditions
    hereunder and thereunder, and

        (v) to do, at its option and at the expense and for the account of the
    Debtor, at any time or from time to time, all acts and things which the
    Collateral Agent or such Secured Party deems necessary to protect or
    preserve the Subject Collateral and to realize upon the Subject Collateral;

provided that either Bank Agent or ACFS Agent or Travelers shall provide the
Debtor written notice of any actions taken by Collateral Agent pursuant to this
subsection (c); provided further, however, that the failure to provide the
Debtor with such written notice shall not affect the validity of the Collateral
Agent's actions taken hereunder.

         Section 3.2. Right to Initiate Judicial Proceedings, etc.

         (a) Prior to the occurrence of an Insolvency Event:

                  (i) even if the Collateral Agent has not received instructions
         pursuant to Section 2.3, the Collateral Agent shall nevertheless have
         the right and power to institute and maintain such suits and
         proceedings as it may deem appropriate to protect and enforce the
         rights vested in it by this Agreement and each Subject Security
         Document;

                  (ii) if and only if the Collateral Agent shall have received
         instructions pursuant to Section 2.3 and during such time as such
         instructions shall not have been withdrawn, the Collateral Agent may,
         either after entry or without entry, proceed by suit or suits at law or
         in equity to foreclose upon the Subject Collateral and to sell all or,
         from time to time, any of the Subject Collateral under the judgment or
         decree of a court of competent jurisdiction; and

                  (iii) the Secured Parties (other than the Collateral Agent)
         hereby agree to refrain from exercising any and all rights each may
         individually (i.e., other than through the Collateral Agent) now or
         hereafter have with respect to the Subject Collateral to exercise any
         right pursuant to the Subject Security Documents, the Uniform
         Commercial Code as in effect in any applicable jurisdiction, or under
         similar provisions of the laws of any jurisdiction or otherwise dispose
         of or retain any of the Subject Collateral, and, in furtherance
         thereof, such Secured Parties hereby agree not to take any action
         whatsoever to enforce any term or provision of the Subject Security
         Documents with respect to the Subject Collateral or to enforce any
         right with respect to the Subject Collateral, in

                                       9
<PAGE>

         conflict with this Agreement or the terms and provisions of the Subject
         Security Documents.

         (b) After the occurrence of any Insolvency Event, each Secured Party
shall have the right and power to institute and maintain such suits and
proceedings as it may deem appropriate to protect and enforce the rights vested
in it by this Agreement and each Subject Security Document as further set forth
in the Intercreditor Agreement.

         Section 3.3. Appointment of a Receiver. If a receiver of the Subject
Collateral shall be appointed in judicial proceedings, Wilmington Trust Company
may be appointed as such receiver. Notwithstanding the appointment of a
receiver, the Collateral Agent shall be entitled to retain possession and
control of all cash held by or deposited with it or its agents or co-agents
pursuant to any provision of this Agreement or any Subject Security Document.

         Section 3.4. Exercise of Powers. All of the powers, remedies and rights
of the Collateral Agent as set forth in this Agreement may be exercised by the
Collateral Agent in respect of any Subject Security Document as though set forth
at length therein and all the powers, remedies and rights of the Collateral
Agent as set forth in any Subject Security Document may be exercised from time
to time as herein and therein provided.

         Section 3.5. Remedies Not Exclusive.

         (a) No remedy conferred upon or reserved to the Collateral herein or in
the Subject Security Documents is intended to be exclusive of any other remedy
or remedies, but every such remedy shall be cumulative and shall be in addition
to every other remedy conferred herein or in any of the Subject Security
Documents or now or hereafter existing at law or in equity or by statute.

         (b) No delay or omission of the Collateral Agent to exercise any right,
remedy or power accruing upon any Actionable Default shall impair any such
right, remedy or power or shall be construed to be a waiver of any such
Actionable Default or an acquiescence therein; and every right, power and remedy
given by this Agreement or any Subject Security Document to the Collateral Agent
or any other Secured Party may be exercised from time to time and as often as
may be deemed expedient by the Collateral Agent or any other Secured Party.

         (c) In case the Collateral Agent shall have proceeded to enforce any
right, remedy or power under this Agreement or any Subject Security Document and
the proceeding for the enforcement thereof shall have been discontinued or
abandoned for any reason or shall have been determined adversely to the
Collateral Agent, then and in every such case the Debtor, the Collateral Agent
and the Secured Parties shall, subject to any effect of or determination in such
proceeding, severally and respectively be restored to their former positions and
rights hereunder and under such Subject Security Document with respect to the
Subject Collateral and in all other respects, and thereafter all rights,
remedies and powers of the Collateral Agent and the other Secured Parties shall
continue as though no such proceeding had been taken.

         (d) All rights of action and rights to assert claims upon or under this
Agreement and the Subject Security Documents may be enforced by the Collateral
Agent without the possession of any Debt Instrument or the production thereof in
any trial or other proceeding relative thereto,

                                       10
<PAGE>

and any such suit or proceeding instituted by the Collateral Agent shall be
brought in its name as Collateral Agent and any recovery of judgment shall be
held as part of the Subject Collateral.

         Section 3.6. Waiver of Certain Rights. The Debtor, to the extent it may
lawfully do so, on behalf of itself and all who may claim through or under it,
including, without limitation, any and all subsequent creditors, vendees,
assignees and lienors, expressly waives and releases any, every and all rights
to demand or to have any marshaling of the Subject Collateral upon any sale,
whether made under any power of sale granted under the Subject Security
Documents, or pursuant to judicial proceedings or upon any foreclosure or any
enforcement of this Agreement or the Subject Security Documents and consents and
agrees that all the Subject Collateral may at any such sale be offered and sold
as an entirety. In no event, however, does the Debtor waive any obligations of
the Collateral Agent under applicable law to dispose of the Subject Collateral
in a commercially reasonable manner.

         Section 3.7. Limitation on Collateral Agent's Duties in Respect of
Subject Collateral. Beyond its duties set forth in this Agreement as to the
custody thereof and the accounting to the Debtor and the Secured Parties for
moneys received by it hereunder, the Collateral Agent shall not have any duty to
the Debtor or the Secured Parties as to any Subject Collateral in its possession
or control or in the possession or control of any agent or nominee of it or any
income thereon or as to the preservation of rights against prior parties or any
other rights pertaining thereto. To the extent, however, that the Collateral
Agent or an agent or nominee of the Collateral Agent maintains possession or
control of any of the Subject Collateral or the Subject Security Documents at
any office of the Debtor, the Collateral Agent shall, or shall instruct such
agent or nominee to, grant the Debtor the access to such Subject Collateral or
Subject Security Documents which the Debtor requires for the conduct of its
business, as permitted by the Bank Agreement, the ACFS Note Agreement and the
Travelers Agreements, so long as the Collateral Agent shall not have received
contrary instructions under Section 2.3.

         Section 3.8. Limitation by Law. All the provisions of this Section 3
are intended to be subject to all applicable mandatory provisions of law which
may be controlling in the premises and to be limited to the extent necessary so
that they will not render this Agreement invalid or unenforceable in whole or in
part.

         Section 3.9. Absolute Rights of the Secured Parties. Notwithstanding
any other provision of this Agreement or any provision of any Subject Security
Document, nothing contained in this Agreement shall affect or impair the right,
if any, that any Secured Party (other than the Collateral Agent) may have under
the terms and conditions governing the Obligations owing to it under the Secured
Party Agreements to which it is a party to accelerate and demand repayment of
such Obligations. Each Secured Party (other than the Collateral Agent) retains
the right to exercise freely its rights and remedies as a general creditor of
the Debtor or any Subsidiary in accordance with applicable law and subject to
the terms of the Secured Party Agreements, including without limitation the
right to file a lawsuit and obtain a judgment in connection therewith against
the Debtor or any Subsidiary, and to otherwise exercise any other right it may
have (other than the right to commence enforcement actions against the Subject
Collateral, which shall in all circumstances prior to an Insolvency Event be
exercisable only by the Collateral Agent and only as provided in this Agreement
and the Subject Security Documents). Any Secured Party (other than the
Collateral Agent) may (but in no event shall be

                                       11
<PAGE>

required to), without instruction from the Collateral Agent, take action
permitted by applicable law or in accordance with the terms of the Subject
Security Documents to preserve its rights, security interests and liens in any
item of Subject Collateral securing the payment and performance of the
obligations under the Secured Party Agreements to which it is a party, including
but not limited to curing any default or alleged default under any contract
entered into by the Debtor or any Subsidiary paying any tax, fee or expense on
behalf of the Debtor or any Subsidiary exercising any offset or recoupment
rights and paying insurance premiums on behalf of the Debtor or any Subsidiary
so long as such action shall not impair the rights of the Collateral Agent or of
any other Secured Party.

                                    SECTION 4

                              APPLICATION OF MONEYS

         Section 4.1. The Subject Collateral Account. All moneys which are
received by the Collateral Agent with respect to the Subject Collateral (whether
by means of foreclosure or otherwise and whether received before or after an
Insolvency Event), net of Collateral Agent's Fees, shall be deposited
(reasonably and promptly after receipt thereof by Collateral Agent) with the
Bank Agent and thereafter shall be held, applied and/or disbursed by the Secured
Parties in accordance with the terms of the Intercreditor Agreement.

                                    SECTION 5

                      AGREEMENTS WITH THE COLLATERAL AGENT

         Section 5.1. Compensation and Expenses. The Debtor agrees to pay to the
Collateral Agent as compensation for the Collateral Agent's services hereunder
and under the Subject Security Documents and for administering the Subject
Collateral, (a) such fees as shall be agreed to in writing from time to time
between the Debtor and the Collateral Agent (with a copy of each such fee
agreement and any amendments thereto to be sent by the Collateral Agent to each
Secured Party) and (b) from time to time, upon demand, all of the fees, costs
and expenses of the Collateral Agent (including without limitation, the
reasonable fees and disbursements of its agents and counsel and such special
counsel as the Collateral Agent elects to retain) (x) arising in connection with
the preparation, execution, delivery, modification, restatement, amendment or
termination of this Agreement and each Subject Security Document or the
enforcement (whether in the context of a civil action, adversary proceeding,
workout or otherwise) of any of the provisions hereof or thereof, or (y)
incurred or required to be advanced in connection with the administration of the
Subject Collateral (including, but not limited to, reimbursements made by the
Collateral Agent to Depositories), the sale or other disposition of Subject
Collateral pursuant to any Subject Security Document, the preservation,
protection or defense of the Collateral Agent's rights under this Agreement and
in and to the Subject Collateral and the transactions contemplated hereby. As
security for such payment, the Collateral Agent shall have a lien prior to the
liens securing the Secured Debt upon all Collateral Agent Subject Collateral.

         Section 5.2. Stamp and Other Similar Taxes. The Debtor agrees to
indemnify and hold harmless the Collateral Agent and each Secured Party from,
and shall reimburse the Collateral Agent and each Secured Party for, any present
or future claim for liability for any stamp or other

                                       12
<PAGE>

similar tax and any penalties or interest with respect thereto, which may be
assessed, levied or collected by any jurisdiction in connection with this
Agreement, any Subject Security Document, the Subject Collateral, or the
attachment or perfection of the security interest granted to the Collateral
Agent in any Subject Collateral. The obligations of the Debtor under this
Section 5.2 shall survive the termination of the other provisions of this
Agreement.

         Section 5.3. Filing Fees, Excise Taxes, etc. The Debtor agrees to pay
or to reimburse the Collateral Agent for any and all amounts in respect of all
search, filing, recording and registration fees, taxes, excise taxes and other
similar imposts which may be payable or determined to be payable in respect of
the execution, delivery, performance and enforcement of this Agreement and each
Subject Security Document and agrees to save the Collateral Agent harmless from
and against any and all liabilities with respect to or resulting from any delay
in paying or omission to pay such taxes and fees. The obligations of the Debtor
under this Section 5.3 shall survive the termination of the other provisions of
this Agreement.

         Section 5.4. Indemnification.

         (a) Each of the Bank Agent, the ACFS Agent, Travelers, and the Debtor
agrees to pay, indemnify and hold the Collateral Agent (including in its
individual capacity) and each of its agents, officers, directors, and employees
harmless from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever with respect to the execution, delivery, enforcement,
performance and administration of this Agreement and the Subject Security
Documents, unless arising from the gross negligence or willful misconduct of the
Collateral Agent or such of the agents as are seeking indemnification. As
security for such payment, the Collateral Agent shall have a lien prior to the
liens securing the Secured Debt upon all Subject Collateral and other property
and funds held or collected by the Collateral Agent as part of the Subject
Collateral.

         (b) In any suit, proceeding or action brought by the Collateral Agent
with respect to the Subject Collateral, or to enforce any provisions of the
Subject Security Documents or this Agreement, each of the Bank Agent, the ACFS
Agent, Travelers, and the Debtor will save, indemnify and keep the Collateral
Agent harmless from and against all expense, loss or damage suffered by reason
of any defense, setoff, counterclaim, recoupment or reduction of liability
whatsoever of the obligee thereunder, arising out of a breach by the Debtor of
any of its obligations hereunder or thereunder or arising out of any other
agreement, indebtedness or liability at any time owing to or in favor of such
obligee or its successors from the Debtor.

         (c) The agreements in this Section 5.4 shall survive the termination of
the other provisions of this Agreement.

         Section 5.5 Further Assurances. At any time and from time to time, upon
the written request of the Collateral Agent or any other Secured Party, and at
the expense of the Debtor, the Debtor will promptly execute and deliver any and
all such further instruments and documents and take such further action as the
Collateral Agent or any other Secured Party reasonably deems necessary or
desirable in obtaining the full benefits of this Agreement and the Subject
Security Documents and of the rights and powers herein and therein granted,
including, without

                                       13
<PAGE>

limitation, the filing of any financing or continuation statements to perfect
the liens and security interests granted thereby. The Debtor shall, in all of
its published financial statements customarily prepared with footnotes or filed
with the Securities and Exchange Commission, indicate by footnote or otherwise
that the Secured Debt is secured pursuant to this Agreement and the Subject
Security Documents.

                                    SECTION 6

                              THE COLLATERAL AGENT

         Section 6.1. Exculpatory Provisions.

         (a) The Collateral Agent shall not be responsible in any manner
whatsoever for the correctness of any recitals, statements, representations or
warranties contained herein or in the Subject Security Documents, except for
those made by the Collateral Agent. The Collateral Agent makes no
representations as to the value or condition of the Subject Collateral or any
part thereof, or as to the title of the Debtor thereto or as to the security
afforded by the Subject Security Documents or this Agreement or, except as set
forth in Section 2.2 of this Agreement, as to the validity, execution,
enforceability, legality or sufficiency of this Agreement, any Subject Security
Document or of the Secured Debt secured hereby and thereby, and the Collateral
Agent shall incur no liability or responsibility in respect of any such matters.
The Collateral Agent shall not be responsible for insuring the Subject
Collateral or for the payment of taxes, charges, assessments or liens upon the
Subject Collateral or otherwise as to the maintenance of the Subject Collateral,
except that (i) in the event the Collateral Agent enters into possession of a
part or all of the Subject Collateral, the Collateral Agent shall preserve the
part in its possession, and (ii) the Collateral Agent will promptly, and at its
own expense, take such action as may be necessary duly to remove and discharge
(by bonding or otherwise) any Collateral Agent's Lien on any part of the Subject
Collateral or any other lien on any part of the Subject Collateral resulting
from claims against it not related to the administration of the Subject
Collateral or (if so related) resulting from gross negligence or willful
misconduct on its part.

         (b) The Collateral Agent may consult with counsel, accountants and
other experts, and the advice of Richards, Layton & Finger, P.A. or such other
independent counsel reasonably satisfactory to the Secured Parties, any such
accountant, and any such other expert shall be full and complete authorization
and protection in respect of any action taken or suffered by it hereunder in
accordance therewith. The Collateral Agent shall have the right at any time to
seek instructions concerning the administration of the Subject Collateral from
any court of competent jurisdiction, the Bank Agent or the ACFS Agent.

         (c) The Collateral Agent may rely, and shall be fully protected in
acting, upon any resolution, instruction, statement, certificate, instrument,
opinion, report, notice, request, consent, order, bond or other paper or
document which it has no reason to believe to be other than genuine and to have
been signed or presented by the proper party or parties or, in the case of
cables, telecopies and telexes, to have been sent by the proper party or
parties. In the absence of its bad faith, the Collateral Agent may rely, as to
the truth of the statements and the correctness of the opinions expressed
therein, upon any certificates or opinions furnished to the Collateral Agent and
conforming to the requirements of this Agreement or any Subject Security
Document.

                                       14
<PAGE>

         (d) In acting hereunder, including if the Collateral Agent has been
instructed to take action pursuant to Section 2.3 of this Agreement, the
Collateral Agent shall not be under any obligation to exercise any of the rights
or powers vested in the Collateral Agent by this Agreement or any Subject
Security Document unless the Collateral Agent shall have been provided adequate
security and indemnity against the costs, expenses and liabilities which may be
incurred by it in complying with such request or direction, including such
reasonable advances as may be requested by the Collateral Agent.

         (e) The Collateral Agent shall not be personally liable for any error
of judgment made in good faith by an officer or employee of the Collateral
Agent. All funds deposited with the Collateral Agent hereunder and not
immediately paid out pursuant hereto may be held in a non-interest bearing trust
account and the Collateral Agent shall not be liable for any interest thereon.
To the extent that, at law or in equity, the Collateral Agent has duties and
liabilities relating hereto, the parties hereto agree that such duties and
liabilities are replaced by the terms of this Agreement. In the exercise of its
duties or administration hereunder, the Collateral Agent may act directly or
through agents or attorneys, and the Collateral Agent shall not be liable for
the default or misconduct of such agents or attorneys if such agents or
attorneys shall have been selected by the Collateral Agent in good faith. In
acting hereunder, the Collateral Agent acts solely as agent and not in its
individual capacity, and all persons having any claim against the Collateral
Agent by reason of the transactions contemplated by this Agreement shall look
only to the property held by the Collateral Agent for payment or satisfaction
thereof.

         Section 6.2. Limitations on Duties of the Collateral Agent.

         (a) The Collateral Agent shall be obliged to perform such duties and
only such duties as are specifically set forth in this Agreement or in any
Subject Security Document, and no implied covenants or obligations shall be read
into this Agreement or any Subject Security Document against the Collateral
Agent. Further, any power, authority, or entitlement hereunder shall not be
construed as a duty. The Collateral Agent shall, upon receipt of instructions
under Section 2.3 hereof and during such time as such instructions shall not
have been withdrawn, exercise the rights and powers vested in it by this
Agreement, by any Subject Security Document or by any Letter Agreement, and the
Collateral Agent shall not be liable with respect to any action taken or omitted
by it in accordance with the instruction of Bank Agent or the ACFS Agent or
Travelers pursuant to this Agreement.

        (b) Except as herein otherwise expressly provided, including, without
    limitation, upon the written request of Bank Agent or the ACFS Agent or
    Travelers, the Collateral Agent shall not be under any obligation to take
    any action which is discretionary with the Collateral Agent under the
    provisions hereof or under any Subject Security Document. The Collateral
    Agent shall furnish to each Secured Party promptly upon receipt thereof, a
    copy of each certificate or other paper furnished to the Collateral Agent by
    the Debtor under or in respect of this Agreement, any Subject Security
    Document or any of the Subject Collateral.

         Section 6.3. Moneys to Be Held in Trust. All moneys received by the
Collateral Agent under or pursuant to any provision of this Agreement or any
Subject Security Document shall be held in trust for the purposes for which they
were paid or are held.

                                       15
<PAGE>

         Section 6.4. Resignation and Removal of the Collateral Agent.

         (a) The Collateral Agent may at any time, by giving thirty (30) days'
prior written notice to the Debtor, Bank Agent, ACFS Agent each of the Travelers
and each other Secured Party, resign and be discharged of the responsibilities
hereby created, such resignation to become effective upon the appointment of a
successor collateral agent or collateral agents by the other Secured Parties,
and the acceptance of such appointment by such successor collateral agent or
collateral agents. The Collateral Agent may be removed at any time without cause
and a successor collateral agent appointed by the affirmative vote of the other
Secured Parties; provided that the Collateral Agent shall be entitled to its
fees and expenses to the date of removal. If no successor collateral agent or
collateral agents shall be appointed and approved within thirty (30) days from
the date of the giving of the aforesaid notice of resignation or within thirty
(30) days from the date of such removal, the Collateral Agent shall, or any
Secured Party may, apply to any court of competent jurisdiction to appoint a
successor collateral agent or collateral agents (which may be an individual or
individuals) to act until such time, if any, as a successor collateral agent or
collateral agents shall have been appointed as above provided. Any successor
collateral agent or collateral agents so appointed by such court shall
immediately and without further act be superseded by any successor collateral
agent or collateral agents appointed by the other Secured Parties.

         (b) If at any time the Collateral Agent shall resign, be removed or
otherwise become incapable of acting, or if at any time a vacancy shall occur in
the office of the Collateral Agent for any other cause, a successor collateral
agent or collateral agents may be appointed by the other Secured Parties, and
the powers, duties, authority and title of the predecessor collateral agent or
collateral agents terminated and canceled without procuring the resignation of
such predecessor collateral agent or collateral agents, and without any other
formality (except as may be required by applicable law) than the appointment and
designation of a successor collateral agent or collateral agents in writing,
duly acknowledged, delivered to the predecessor collateral agent or collateral
agents and the Debtor, and filed for record in each public office, if any, in
which this Agreement is required to be filed.

         (c) The appointment and designation referred to in Section 6.4(b) of
this Agreement shall, after any required filing, be full evidence of the right
and authority to make the same and of all the facts therein recited, and this
Agreement shall vest in such successor collateral agent or collateral agents,
without any further act, deed or conveyance, all of the estate and title of its
predecessor or their predecessors, and upon such filing for record the successor
collateral agent or collateral agents shall become fully vested with all the
estates, properties, rights, powers, trusts, duties, authority and title of its
predecessor or their predecessors; but such predecessor or predecessors shall,
nevertheless, on the written request of any Secured Party, the Debtor, or its or
their successor collateral agent or collateral agents, execute and deliver an
instrument transferring to such successor or successors all the estates,
properties, rights, powers, trusts, duties, authority and title of such
predecessor or predecessors hereunder and shall deliver all securities and
moneys held by it or them to such successor collateral agent or collateral
agents. Should any deed, conveyance or other instrument in writing from the
Debtor be required by any successor collateral agent or collateral agents for
more fully and certainly vesting in such successor collateral agent or
collateral agents the estates, properties, rights, powers, trusts, duties,
authority and title vested or intended to be vested in the predecessor
collateral agent or collateral

                                       16
<PAGE>

agents, any and all such deeds, conveyances and other instruments in writing
shall, on request of such successor collateral agent or collateral agents, be so
executed, acknowledged and delivered.

         (d) Any required filing for record of the instrument appointing a
successor collateral agent or collateral agents as hereinabove provided shall be
at the expense of the Debtor. The resignation of any collateral agent or
collateral agents and the instrument or instruments removing any collateral
agent or collateral agents, together with all other instruments, deeds and
conveyances provided for in this Section 6 shall, if required by law, be
forthwith recorded, registered and filed by and at the expense of the Debtor,
wherever this Agreement is recorded, registered and filed.

         (e) Notwithstanding any provision to the contrary in this Section 6.4,
unless there is an Actionable Default, the Secured Parties shall consult with
the Debtor when appointing a successor collateral agent or collateral agents;
provided that the Debtor may not under any circumstances reject, block or
prevent such appointment.

         Section 6.5. Status of Successors to the Collateral Agent. Every
successor to Wilmington Trust Company appointed pursuant to Section 6.4 of this
Agreement and every corporation resulting from a merger or consolidation
pursuant to Section 6.6 of this Agreement shall be a bank or trust company in
good standing and having power so to act, incorporated under the laws of the
United States or any State thereof or the District of Columbia, and having its
principal corporate trust office within the forty-eight (48) contiguous States,
and shall also have capital, surplus and undivided profits of not less than
$250,000,000 and a rating from Standard & Poor's Ratings Group or Moody's
Investors Service, Inc. of A or better.

         Section 6.6. Merger of the Collateral Agent. Any corporation into which
the Collateral Agent shall be merged, or with which it shall be consolidated, or
any corporation resulting from any merger or consolidation to which the
Collateral Agent shall be a party, shall be the Collateral Agent under this
Agreement without the execution or filing of any paper or any further act on the
part of the parties hereto.

         Section 6.7. Additional Co-Collateral Agents; Separate Collateral
Agents.

         (a) If at any time or times it shall be necessary or prudent in order
to conform to any law of any jurisdiction in which any of the Subject Collateral
shall be located, or the Collateral Agent shall be advised by counsel,
satisfactory to it, that it is so necessary, or prudent in the interest of the
Secured Parties, or the Secured Parties shall in writing so request, or the
Collateral Agent shall deem it desirable for its own protection in the
performance of its duties hereunder, the Collateral Agent and the Debtor shall
execute and deliver all instruments and agreements necessary or proper to
constitute another bank or trust company, or one or more persons approved by the
Collateral Agent and the Debtor either to act as co-collateral agent or
co-collateral agents of all or any of the Subject Collateral, jointly with the
Collateral Agent originally named herein or any successor or successors, or to
act as separate collateral agent or collateral agents of any such property. In
the event the Debtor shall not have joined in the execution of such instruments
and agreements within ten (10) days after the receipt of a written request from
the Collateral Agent so to do, or in case an Actionable Default shall have
occurred and be continuing, the Collateral Agent may act under the foregoing
provisions of this Section

                                       17
<PAGE>

6.7 without the concurrence of the Debtor, and the Debtor hereby irrevocably
appoints the Collateral Agent as its agent and attorney to act for it under the
foregoing provisions of this Section 6.7 in either of such contingencies.

         (b) Every separate collateral agent and every co-collateral agent,
other than any collateral agent which may be appointed as successor to
Wilmington Trust Company shall, to the extent permitted by law, be appointed and
act and be such, subject to the following provisions and conditions, namely:

        (i) all rights, powers, duties and obligations conferred upon the
    Collateral Agent in respect of the custody, control and management of
    moneys, papers or securities shall be exercised solely by Wilmington Trust
    Company, or its successors as Collateral Agent hereunder;

        (ii) all rights, powers, duties and obligations conferred or imposed
    upon the Collateral Agent hereunder shall be conferred or imposed and
    exercised or performed by the Collateral Agent and such separate collateral
    agent or separate collateral agents or co-collateral agent or co-collateral
    agents, jointly, as shall be provided in the instrument appointing such
    separate collateral agent or separate collateral agents or co-collateral
    agent or co-collateral agents, except to the extent that under any law of
    any jurisdiction in which any particular act or acts are to be performed,
    the Collateral Agent shall be incompetent or unqualified to perform such act
    or acts, in which event such rights, powers, duties and obligations shall be
    exercised and performed by such separate collateral agent or separate
    collateral agents or co-collateral agent or co-collateral agents;

        (iii) no power given hereby to, or which it is provided hereby may be
    exercised by, any such co-collateral agent or co-collateral agents or
    separate collateral agent or separate collateral agents, shall be exercised
    hereunder by such co-collateral agent or co-collateral agents or separate
    collateral agent or separate collateral agents, except jointly with, or with
    the consent in writing of, the Collateral Agent, anything herein contained
    to the contrary notwithstanding;

        (iv) no collateral agent hereunder shall be personally liable by reason
    of any act or omission of any other collateral agent hereunder; and

        (v) the Debtor and the Collateral Agent, at any time by an instrument in
    writing, executed by them jointly, may accept the resignation of or remove
    any such separate collateral agent or co-collateral agent with or without
    cause, and in that case may, by an instrument in writing executed by the
    Debtor and the Collateral Agent jointly, appoint a successor to such
    separate collateral agent or co-collateral agent, as the case may be,
    anything herein contained to the contrary, notwithstanding. In the event
    that the Debtor shall not have joined in the execution of any such
    instrument within ten (10) days after the receipt of a written request from
    the Collateral Agent so to do, or in case an Actionable Default shall have
    occurred and be continuing, the Collateral Agent shall have the power to
    accept the resignation of or remove any such separate collateral agent or
    co-collateral agent and to appoint a successor without the concurrence of
    the Debtor, the Debtor hereby irrevocably appointing the Collateral Agent
    its agent and attorney to act for it in such connection in either

                                       18
<PAGE>

    of such contingencies. In the event that the Collateral Agent shall have
    appointed a separate collateral agent or separate collateral agents or
    co-collateral agent or co-collateral agents as above provided, it may at any
    time, by an instrument in writing, accept the resignation of or remove any
    such separate collateral agent or co-collateral agent, the successor to any
    such separate collateral agent or co-collateral agent to be appointed by the
    Debtor and the Collateral Agent, or by the Collateral Agent alone, as
    hereinabove provided in this Section 6.7.

                                    SECTION 7

                 RELEASE OF COLLATERAL; TERMINATION OF AGREEMENT

         Section 7.1. Conditions to Release of Subject Collateral.

         (a) Subject to this Section 7.1(a), Section 7.2, and Section 7.3, the
Collateral Agent shall release its security interest in all of the Subject
Collateral on the earlier of:

        (i) the date on which (A) Bank Agent, ACFS Agent, and Travelers shall
    notify Collateral Agent that all the Secured Debt shall have been
    indefeasibly paid in full and the unfunded commitments of all Secured
    Parties shall have been terminated and (B) accrued and unpaid Collateral
    Agent's Fees shall have been paid in full; or

        (ii) the date which is three (3) days after the date on which (A) the
    Collateral Agent shall have received written instructions from the Bank
    Agent and the ACFS Agent and Travelers instructing the Collateral Agent to
    release its security interest in all of the Subject Collateral, and (B)
    accrued and unpaid Collateral Agent's Fees shall have been paid in full.

         (b) Subject to this Section 7.1(b) and Section 7.2, the Collateral
Agent shall release its security interest in specific items or portions of the
Subject Collateral on the date which is three (3) days after the date on which
(i) the Collateral Agent shall have received written instructions from the Bank
Agent and the ACFS Agent instructing the Collateral Agent to release its
security interest in specific items or portions of the Subject Collateral, and
(ii) accrued and unpaid Collateral Agent's Fees shall have been paid in full.

         (c) Without limitation of anything contained in Section 7.1(a) or (b),
each of the Debtor and the Collateral Agent shall from time to time execute and
deliver to Bank Agent a Letter of Termination with respect to each Subject
Deposit Account promptly upon request therefor by Bank Agent.

         Section 7.2. Actions Following Release of the Subject Collateral. To
the extent that the Collateral Agent is required to release, and each other
Secured Party releases, its security interests in the Subject Collateral in
accordance with this Agreement, or the security interest in any Subject
Collateral granted to the Collateral Agent pursuant to any of the Subject
Security Documents is otherwise terminated or released in accordance with the
terms thereof, all right, title and interest of the Collateral Agent in, to and
under such Subject Collateral and the security interest of the Collateral Agent
therein shall terminate. Following such request, instructions or other
termination or release, the Collateral Agent shall, upon the written request of
any Secured Party and at the cost and expense of the Secured Parties execute
such instruments and take such

                                       19
<PAGE>

other actions as are necessary or desirable to terminate any such security
interest and otherwise to effectuate the release of the specified portions of
the Subject Collateral from the lien of such security interest. Such termination
and release shall be without prejudice to the rights of the Collateral Agent or
any successor collateral agent or any other Secured Party to charge and be
reimbursed for any expenditures which it may thereafter incur in connection
therewith.

         Section 7.3. Termination of Agency Relationship; Termination of
Agreement.

         (a) Upon the execution and delivery by Collateral Agent of each Letter
of Termination in accordance with Section 7.1(c), (a) Collateral Agent shall
cease to be the agent of Bank Agent, ACFS Agent, and Travelers with respect to
the Subject Deposit Accounts to which each such Letter of Termination Relates,
(b) all of Collateral Agent's right, titles, and interests in and to such
Subject Deposit Accounts and all Subject Collateral held therein shall
automatically be released and shall cease and terminate without any further
action of any party hereto, and (c) each such Subject Deposit Account shall
cease to be a Subject Deposit Account for all purposes hereunder.

         (b) This Agreement and the agency relationship created hereby shall
automatically cease and terminate without any further action of any party hereto
on the date on which Collateral Agent has released all of its rights, titles, or
interests in and to each Subject Deposit Account and all of the Subject
Collateral, whether as a result of the execution and delivery of one or more
Letters of Termination or otherwise.

                                    SECTION 8

                                  MISCELLANEOUS

         Section 8.1. Amendments, Supplements and Waivers. This Agreement may
not be amended, revised, restated or supplemented without the prior written
consent of the Secured Parties, the Debtor and the Collateral Agent.

         Section 8.2. Notices. All notices, requests, demands and other
communications provided for or permitted hereunder shall be in writing
(including telex and telecopy communications), shall be sent by mail, telex,
telecopier or hand delivery and, except as otherwise provided in this Agreement,
the cost thereof shall be for the sole account of the Debtor and shall be added
to the Obligations:

         (a) If to the Debtor, to Ace Cash Express, Inc., 1231 Greenway Drive,
Suite 800, Irving, Texas 75038, Attention: Chief Financial Officer, or at such
other address as shall be designated by it in a written notice to the Collateral
Agent (a copy of which the Collateral Agent shall send to all other Secured
Parties), with a copy thereof to Gardere & Wynne, L.L.P., 333 Clay Avenue, Suite
800, Houston, Texas 77002 Attention: Robert W. Bramlette; provided, however,
that the failure to provide a copy of such communications to Gardere & Wynne,
L.L.P. shall not affect the validity or effectiveness of such communications.

         (b) If to the Collateral Agent, to the Collateral Agent at: Wilmington
Trust Company, Rodney Square North, Wilmington, Delaware 19890, Attention:
Corporate Trust Administration, or at such other address as shall be designated
by it in a written notice to the

                                       20
<PAGE>

Debtor and the other Secured Parties, with a copy thereof to Richards, Layton &
Finger, 920 King Street, Wilmington, Delaware, 19801, Attention: William J.
Wade; provided, however, that the failure to provide a copy of such
communications to Richards, Layton & Finger shall not affect the validity or
effectiveness of such communications.

         (c) If to Bank Agent, to Wells Fargo Bank Texas, National Association,
4975 Preston Park Road, Plano, Texas 75093, Attention: Michael B. Sullivan or at
such other address as shall be designated by it in a written notice to the other
Secured Parties, with a copy thereof to Winstead, Sechrest & Minick P.C., 1201
Elm Street, Suite 5400, Dallas, Texas 75270, Attention: James R. Littlejohn;
provided, however, that the failure to provide a copy of such communications to
Winstead, Sechrest & Minick P.C. shall not affect the validity or effectiveness
of such communications.

         (d) If to ACFS Agent, to American Capital Financial Services, Inc., 2
Bethesda Metro Center, 14th Floor, Bethesda, Maryland 20814, Attention:
Compliance Officer and to American Capital Financial Strategies, Ltd., 2200 Ross
Avenue, Suite 4500 West, Dallas, Texas 75204 Attention: Jeffrey N. MacDowell, or
at such other address as shall be designated by it in a written notice to the
other Secured Parties, with a copy thereof to Patton Boggs L.L.P., 2001 Ross
Avenue, Dallas, Texas 75201 Attention: Robert J. Cole; provided, however, that
the failure to provide a copy of such communications to Patton Boggs L.L.P.
shall not affect the validity or effectiveness of such communications.

         (d) If to Travelers, to Travelers Express Company, Inc., 1550 Utica
Avenue South, Minneapolis, Minnesota 55416, Attention: Chief Legal Counsel, or
at such other address as shall be designated by it in a written notice to the
other Secured Parties.

         All such notices, requests, demands and communications shall, to be
effective hereunder, be in writing or by a telecommunications device capable of
creating a written record, and shall be deemed to have been given or made when
delivered by hand or five (5) days after its deposit in the mail, first class or
air postage prepaid, or in the case of notice by such a telecommunications
device, when properly transmitted if on the same day the sender sends a
confirming copy of such notice by a recognized overnight delivery service
(charges prepaid); provided, however, that any notice, request, demand or other
communication to the Collateral Agent shall not be effective until received.

         Section 8.3. Headings. Section, subsection and other headings used in
this Agreement are for convenience only and shall not affect the construction of
this Agreement.

         Section 8.4. Severability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall not invalidate the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction; provided that this Agreement shall be construed so as to
give effect to the intention expressed in Section 3.9 hereof.

         Section 8.5. Dealings with the Debtor.

         (a) Upon any application or demand by the Debtor to the Collateral
Agent or any other Secured Party to take or permit any action under any of the
provisions of this Agreement or

                                       21
<PAGE>

any Subject Security Document, the Debtor shall furnish to the Collateral Agent,
with copies to each Secured Party, a certificate signed by a Responsible Officer
of the Debtor stating that all conditions precedent, if any, provided for in
this Agreement or any Subject Security Document relating to the proposed action
have been complied with, except that in the case of any such application or
demand as to which the furnishing of such documents is specifically required by
any provision of this Agreement or any Subject Security Document, relating to
such particular application or demand, no additional certificate or opinion need
be furnished.

         (b) Any opinion of counsel may be based, insofar as it relates to
factual matters, upon a certificate of Responsible Officers of the Debtor
delivered to the Collateral Agent and each other Secured Party.

         Section 8.6. Claims Against the Collateral Agent; Payment of Collateral
Agent's Fees.

         (a) Any claims or causes of action which any Secured Party or the
Debtor shall have against the Collateral Agent shall survive the termination of
this Agreement and the release of the Subject Collateral hereunder.

         (b) In the event the Debtor does not pay the Collateral Agent's Fees,
each Secured Party (other than the Collateral Agent) agrees to pay the
Collateral Agent's Fees ratably in accordance with the proportion of the Secured
Debt held by such Secured Party or, if there has been any recovery of the
Secured Debt, in accordance with the proportion of (i) the Secured Debt
recovered by such Secured Party to (ii) the aggregate amount of Secured Debt
recovered by all Secured Parties.

         Section 8.7. Binding Effect.

         (a) This Agreement shall be binding upon and inure to the benefit of
each of the parties hereto and shall inure to the benefit of the Secured Parties
and their respective successors and assigns, and nothing herein or in any
Subject Security Document is intended or shall be construed to give any other
Person any right, remedy or claim under, to or in respect of this Agreement, any
Subject Security Document, the Subject Collateral.

         (b) The Debtor has agreed to pay on demand the Collateral Agent's Fees.
In the event the Debtor fails to pay the Collateral Agent's Fees, each Secured
Party (other than the Collateral Agent) has agreed in Section 8.6(b) of this
Agreement to pay the Collateral Agent's Fees, ratably in accordance with the
proportion of the Secured Debt held by such Secured Party or, if there has been
any recovery of the Secured Debt, in accordance with the proportion of (i) the
Secured Debt recovered by such Secured Party to (ii) the aggregate amount of
Secured Debt recovered by all Secured Parties, all as set forth in this
Agreement.

         Section 8.8. Conflict with Other Agreements. The parties agree that in
the event of any conflict between the provisions of this Agreement and the
provisions of any of the Subject Security Documents, the provisions of this
Agreement shall control. The parties agree that in the event of any conflict
between the provisions of this Agreement and the provisions of the Intercreditor
Agreement, the provisions of the Intercreditor Agreement shall control.

                                       22
<PAGE>

         Section 8.9. Governing Law. The provisions of this Agreement setting
forth the rights, duties, obligations and responsibilities of the Collateral
Agent hereunder shall be governed by and construed in accordance with the
internal laws (as opposed to conflicts of law provisions) and decisions of the
State of Delaware, so long as Wilmington Trust Company shall serve as Collateral
Agent hereunder. In all other respects, including, without limitation, all
matters governed by the Uniform Commercial Code, and if Wilmington Trust Company
shall cease to serve as Collateral Agent hereunder, this Agreement shall be
governed by and construed in accordance with the internal laws (as opposed to
conflicts of law provisions) and decisions of the State of Texas.

         Section 8.10. Counterparts. This Agreement may be executed in separate
counterparts, each of which shall be an original and all of which taken together
shall constitute one and the same instrument.

         Section 8.11. Waiver of Jury Trial, Etc.

         (a) EACH PARTY HERETO HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS AGREEMENT OR ANY OF
THE OTHER CREDIT DOCUMENTS OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL
TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE
OTHER SUBJECT SECURITY DOCUMENTS OR THE TRANSACTIONS RELATED HERETO OR THERETO
IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT,
TORT, EQUITY OR OTHERWISE. EACH PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OF
A COPY OF THIS AGREEMENT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES
HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

         (b) EACH PARTY HERETO (I) CERTIFIES THAT NEITHER ANY REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO
THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS
HEREIN.

         Section 8.12. Submission to Jurisdiction.

         (a) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY
BE BROUGHT IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF
TEXAS, DALLAS DIVISION, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE
DEBTOR HEREBY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND
UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE AFORESAID COURT.

                                       23
<PAGE>

         (b) THE DEBTOR HEREBY IRREVOCABLY WAIVES, IN CONNECTION WITH ANY SUCH
ACTION OR PROCEEDING, ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY
OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON
CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH
ACTION OR PROCEEDING IN SUCH JURISDICTION.

         (c) THE DEBTOR HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF
THE AFOREMENTIONED COURT IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF
COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO IT, AT ITS
ADDRESS SET FORTH IN SECTION 8.2 HEREOF.

         (d) NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE COLLATERAL AGENT OR
ANY HOLDER OF ANY OF THE OBLIGATIONS TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST
THE DEBTOR IN ANY OTHER JURISDICTION.

                                       24
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement or
caused this Agreement to be duly executed by their respective officers thereunto
duly authorized as of the day and year first above written.

                                 ACE CASH EXPRESS, INC., as Debtor

                                 By:
                                    -------------------------------------------

                                 Name:
                                      -----------------------------------------

                                 Title:
                                       ----------------------------------------

                                 WELLS FARGO BANK TEXAS, NATIONAL
                                 ASSOCIATION, as Bank Agent

                                 By:
                                    -------------------------------------------

                                 Name:
                                      -----------------------------------------

                                 Title:
                                       ----------------------------------------

                                 AMERICAN CAPITAL FINANCIAL SERVICES,
                                 INC., as ACFS Agent

                                 By:
                                    -------------------------------------------

                                 Name:
                                      -----------------------------------------

                                 Title:
                                       ----------------------------------------

                                 TRAVELERS EXPRESS COMPANY, INC.

                                 By:
                                    -------------------------------------------

                                 Name:
                                      -----------------------------------------

                                 Title:
                                       ----------------------------------------

<PAGE>

                                 WILMINGTON TRUST COMPANY, not in its
                                 individual capacity (except as otherwise
                                 expressly provided in this Agreement)
                                 but solely as Collateral Agent

                                 By:
                                    -------------------------------------------

                                 Name:
                                      -----------------------------------------

                                 Title:
                                       ----------------------------------------

                                       2
<PAGE>

Schedule 1

                            Subject Deposit Accounts

<Table>
<Caption>
ACCOUNT NAME                                 BANK ACCT #       BANK NAME
-------------------------------------------------------------------------------
<S>                                          <C>               <C>
ARKANSAS DEP                                 89440513          BANK OF AMERICA
ARKANSAS R/I                                 89440526          BANK OF AMERICA
ARKANSAS CURR                                89440539          BANK OF AMERICA
NEW MEXICO DEP                               109650382         BANK OF AMERICA
NEW MEXICO CURR                              109650390         BANK OF AMERICA
NEW MEXICO R/I                               109650408         BANK OF AMERICA

NASHVILLE TN. DEP                            112485669         BANK OF AMERICA

NASHVILLE TN. CURR                           112485677         BANK OF AMERICA

NASHVILLE TN. R/I                            112485685         BANK OF AMERICA
WICHITA KANSAS DEP                           2861440603        BANK OF AMERICA
WICHITA KANSAS R/I                           2861440616        BANK OF AMERICA
WICHITA KANSAS CURR                          2861440629        BANK OF AMERICA

SAVANNAH GA. CURR                            3266408527        BANK OF AMERICA

SAVANNAH GA. DEP                             3266408535        BANK OF AMERICA

SAVANNAH GA. R/I                             3266408543        BANK OF AMERICA
WILMINGTON  NC. CURR                         3783622508        BANK OF AMERICA
WILMINGTON  NC. DEP                          3783622511        BANK OF AMERICA
WILMINGTON  NC. R/I                          3783622524        BANK OF AMERICA
CHARLESTON SC. CURR                          3783730461        BANK OF AMERICA
CHARLESTON SC. DEP                           3783730474        BANK OF AMERICA
CHARLESTON SC. R/I                           3783730487        BANK OF AMERICA
CAPITOL R/I                                  3783832589        BANK OF AMERICA
CAPITOL CURR                                 3783832592        BANK OF AMERICA
CAPITOL DEP                                  3783832602        BANK OF AMERICA
HUNTSVILLE CURR                              4771913193        BANK OF AMERICA
HUNTSVILLE DEP                               4771913201        BANK OF AMERICA
HUNTSVILLE R/I                               4771913219        BANK OF AMERICA
PINE BLUFF DEP                               8007072791        BANK OF AMERICA
PINE BLUFF R/I                               8007072805        BANK OF AMERICA
</Table>

<PAGE>

<Table>
<Caption>
ACCOUNT NAME                                 BANK ACCT #       BANK NAME
-------------------------------------------------------------------------------
<S>                                          <C>               <C>
PINE BLUFF CURR                              8007072813        BANK OF AMERICA
OKLAHOMA R/I                                 70108364923       BANK OF AMERICA
OKLAHOMA DEP                                 70108364931       BANK OF AMERICA
OKLAHOMA CURR                                70108364958       BANK OF AMERICA

ST.LOUIS MO. DEP                             100101249510      BANK OF AMERICA

ST.LOUIS MO. CURR                            100101249529      BANK OF AMERICA

ST.LOUIS MO. R/I                             100101249537      BANK OF AMERICA

FT.WAYNE IN. CURR                            715001269599      BANK ONE
FT.WAYNE IN. DEP                             715001269615      BANK ONE
FT.WAYNE IN. R/I                             715002369607      BANK ONE

NEW ORLEANS DEP                              812315781         HIBERNIA NAT'L
NEW ORLEANS CURR                             812315803         HIBERNIA NAT'L
NEW ORLEANS R/I                              812315811         HIBERNIA NAT'L
LONGVIEW TX CURR                             3420000752        HIBERNIA NAT'L
LONGVIEW TX DEP                              3420000760        HIBERNIA NAT'L
LONGVIEW TX R/I                              3420000779        HIBERNIA NAT'L

CLEVELAND OH. DEP                            3765199           NATIONAL CITY

CLEVELAND OH. CURR                           3765201           NATIONAL CITY

CLEVELAND OH. R/I                            3765228           NATIONAL CITY

INDIANAN CURR                                501912286         NATIONAL CITY

INDIANAN DEP                                 501912338         NATIONAL CITY

INDIANAN R/I                                 501912341         NATIONAL CITY

PITTSBURGH CURR                              4600658771127     NATIONAL CITY

PITTSBURGH DEP                               4600658771143     NATIONAL CITY

PITTSBURGH R/I                               4600658771151     NATIONAL CITY

HOMEWOOD AL. DEP                             301060694         REGION'S
HOMEWOOD AL. CURR                            301060708         REGION'S
HOMEWOOD AL. R/I                             301060813         REGION'S
ALBANY CURR                                  2507841006        REGION'S
ALBANY DEP                                   2507842206        REGION'S
ALBANY R/I                                   2507843406        REGION'S
</Table>

<PAGE>

<Table>
<Caption>
-------------------------------------------------------------------------------
ACCOUNT NAME                                 BANK ACCT #       BANK NAME
-------------------------------------------------------------------------------
<S>                                          <C>               <C>
CORPUS CHRISTI R/I                           1411001371        TEXAS CAPITOL

CORPUS CHRISTI DEP                           1411001678        TEXAS CAPITOL

CORPUS CHRISTI CURR                          1411001686        TEXAS CAPITOL

NO. CAROLINA DEP                             2000000566115     WACHOVIA

NO. CAROLINA R/I                             2000000566128     WACHOVIA

NO. CAROLINA CURR                            2000000566131     WACHOVIA

ACE CollectionsTrustAcct/ALA                 2000014786923     WACHOVIA

ACE CollectionsTrustAcct/DITORE              2000014787809     WACHOVIA

SO.CAROLINA DEP                              2010000169829     WACHOVIA

SO.CAROLINA R/I                              2010000169832     WACHOVIA

SO.CAROLINA CURR                             2010000175703     WACHOVIA

VIRGINIA DEP                                 2050000054237     WACHOVIA

VIRGINIA R/I                                 2050000054240     WACHOVIA

VIRGINIA CURR                                2050000054253     WACHOVIA
GEORGIA DEP                                  2080000230403     WACHOVIA
GEORGIA R/I                                  2080000230416     WACHOVIA
GEORGIA CURR                                 2080000230429     WACHOVIA
FLORIDA DEP                                  2090001409155     WACHOVIA
FLORIDA CURR                                 2090001409168     WACHOVIA
FLORIDA R/I                                  2090001409171     WACHOVIA
                                             2090001409414     WACHOVIA
</Table>

<PAGE>

Exhibit A
                         [Form of Letter of Termination]

                          _____________________, 200__

[Name and address of Depository]

------------------------------------

------------------------------------

-------------------------------------

Re:     Accounts described on the attached schedule maintained by you for ACE
        Cash Express, Inc. (the "Accounts")

Ladies and Gentlemen:

         Please be advised that Wilmington Trust Company, as Collateral Agent,
no longer claims any security interest or lien in the Accounts or any property
of ACE Cash Express, Inc. contained in any of the Accounts (the "Account
Property"). Accordingly, each of the undersigned hereby (a) terminates any and
all rights Collateral Agent may have to originate instructions with respect to
the Accounts and the Account Property and (b) acknowledges that Collateral Agent
no longer has any rights with respect to the Accounts and the Account Property
whatsoever.

    WILMINGTON TRUST COMPANY, not individually but solely as Collateral Agent

    By:
       ------------------------------------
       Name:
       Title

    ACE CASH EXPRESS, INC.

    By:
       ------------------------------------
       Name:
       Title

[Schedule of Accounts to be attached]

<PAGE>
                                                                     EXHIBIT F-1

                              [COMPANY LETTERHEAD]

                              ___________ ___, 2003

                         SUBORDINATED CONTROL AGREEMENT

[NAME OF FINANCIAL INSTITUTION]
[                                   ]
 -----------------------------------
[                                   ]
 -----------------------------------
Attn:    [                          ]
          --------------------------

         Re: Each of the accounts described on the attached Account Schedule
             (collectively, the "ACCOUNTS" and individually, an "ACCOUNT")

Ladies and Gentlemen:

         Reference is made to (i) that certain Intercreditor Agreement dated as
of [___________ ___], 2003, by and among Ace Cash Express, Inc., a Texas
corporation (the "COMPANY"), Wells Fargo Bank Texas, National Association, as
Administrative Agent (the "BANK AGENT") for the lenders (the "LENDERS") from
time to time party to the Bank Agreement (as such term is defined in the
Intercreditor Agreement), American Capital Financial Services, Inc., as Agent
("ACFS AGENT") for the purchasers ("PURCHASERS") from time to time party to the
ACFS Note Agreement (as such term is defined in the Intercreditor Agreement),
and Travelers Express Company, Inc. ("TRAVELERS")(as such Intercreditor
Agreement may be amended, restated, supplemented or otherwise modified from time
to time, the "INTERCREDITOR AGREEMENT") and (ii) that certain Assignment of
Deposit Accounts and Security Agreement dated as of [___________ ___], 2003, by
the Company in favor of the ACFS Agent for the benefit of the Purchasers (as
such Assignment of Deposit Accounts and Security Agreement may be amended,
restated, supplemented or otherwise modified from time to time, the "SECURITY
AGREEMENT").

         Pursuant to the Security Agreement, the Company has granted control of
the Accounts to the ACFS Agent and granted to the ACFS Agent a security interest
in the Accounts and the Company's monies, funds, checks, negotiable instruments
and any other items or property deposited and/or held in the Accounts from time
to time and all proceeds thereof (all of the foregoing hereinafter collectively
referred to as the "ACCOUNT PROPERTY") subject only to the prior perfected
security interest of the Bank Agent therein as set forth below, in each case, to
secure certain obligations and indebtedness of the Company owing to the ACFS
Agent and the Purchasers described therein. The Company hereby notifies you, and
you hereby acknowledge, that the Company has granted a security interest to the
ACFS
<PAGE>
[NAME OF FINANCIAL INSTITUTION]
Page 2

Agent in, and control of, the Accounts and the other Account Property
subject to the rights of the Bank Agent therein as set forth below.

         This letter shall become effective as of 6:00 a.m., Dallas, Texas time
(the "EFFECTIVE TIME"), on the date first written above upon execution of this
letter by each party hereto and delivery of the same to you.

         The Company hereby agrees with the ACFS Agent, and you hereby
acknowledge, that (a) the Company has no power to withdraw from the Accounts
except as expressly permitted hereunder and under that certain letter agreement
between you and the Bank Agent of even date herewith (the "BANK CONTROL LETTER")
and (b) subject to the following paragraph, the ACFS Agent may, at any time by
written notice to you, terminate or suspend any and all rights of the Company
related to the Accounts.

         The Company hereby irrevocably and unconditionally authorizes,
instructs and directs you to comply, and you hereby agree to comply, with all
instructions originated by the ACFS Agent with respect to the Accounts or
directing disposition of any or all monies, funds, checks, negotiable
instruments or any other items or properties in the Accounts, in each case
without joinder or further consent by the Company and as promptly after receipt
thereof as is reasonably possible so long as each such instruction is
accompanied by a written certification from ACFS Agent stating that ACFS Agent
is authorized to originate such instruction under, and in accordance with, the
Intercreditor Agreement; provided, however, that in the event of any insolvency,
bankruptcy, liquidation, reorganization or other similar proceedings or any
receivership proceedings in connection therewith, relative to the Company, the
Company hereby irrevocably and unconditionally authorizes, instructs and directs
you to comply, and you hereby agree to comply, with all instructions originated
by the ACFS Agent with respect to the Accounts or directing disposition of any
or all monies, funds, checks, negotiable instruments or any other items or
properties in the Accounts, so long as each such instruction is accompanied by a
written certification from ACFS Agent stating that a court of competent
jurisdiction has authorized ACFS Agent to originate such instruction and having
attached thereto a copy of an order of such court granting to ACFS Agent such
authority, in each case without joinder or further consent by the Company and as
promptly after receipt thereof as is reasonably possible. You are entitled to
rely upon and are authorized and directed to follow all instructions of the ACFS
Agent and you have no duty of inquiry as to the authorization or authenticity of
any such instructions so long as they are given by an individual designated by
the ACFS Agent and accompanied by either of the foregoing described
certifications.

         You agree to indicate by appropriate entry in your records with respect
to the Accounts or the Account Property the security interest of the ACFS Agent
therein.

         This notification and the directions and instructions contained herein
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.

<PAGE>
[NAME OF FINANCIAL INSTITUTION]
Page 3

         You agree to deliver copies of all correspondence, notices, bank
statements and other information which you are otherwise obligated or permitted
to send to the Company (by law, agreement or otherwise) to the ACFS Agent at the
address specified herein, if so requested by the ACFS Agent in writing. You are
further authorized, and the Company hereby consents, to deliver any information
requested by the ACFS Agent related to the Accounts, with any reasonable expense
therefor to be paid by the Company. Any reasonable additional charge for
providing such information shall be billed to the Company, with a copy to the
ACFS Agent; if such charge is not paid by the Company within ten (10) days after
its receipt of such invoice, you may set off such charge against any of the
Accounts or the Account Property; if such charge cannot be paid by set off
against the Account or the Account Property, then unless the ACFS Agent agrees
to pay such charge, your obligation to provide such information shall cease. All
other notices, communications and information to be delivered to the ACFS Agent
shall be delivered to the ACFS Agent as set forth in the first sentence of this
paragraph. Such address and the name or names of the individual or individuals
who are entitled to receive notices and copies of statements sent to the ACFS
Agent may be changed by written notice from the ACFS Agent. Requests, consents
or notices from the ACFS Agent with respect to the Accounts or Account Property
will be effective only if obtained in writing from an individual designated by
the ACFS Agent for purposes thereof from time to time. The ACFS Agent and the
Company acknowledge and agree that you shall not be bound by any change in
address or designation of any responsible party prior to your actual receipt of
written notice thereof.

         You hereby waive and release any and all rights of offset, claims or
counterclaims against, and any and all security interests, banker's liens or
similar rights in or to, the Accounts or the Account Property (whether arising
under law, agreement or otherwise) other than the security interests in the
Accounts and the Account Property and your interests therein (if any) which have
been granted to Bank Agent.

         These instructions may only be modified in writing by an agreement
executed by you, the Company and the ACFS Agent; provided, however, that the
attached Account Schedule may be amended by delivery of a revised schedule from
the Company and the ACFS Agent to you. All notices, approvals, or instructions
hereunder shall be sent to the following addressee:

         If to the Company:

                  Ace Cash Express, Inc.
                  1231 Greenway Dr., Ste. 800
                  Irving, Texas 75038
                  Attention: Jay B. Shipowitz
                  Telephone No.: 972 550 5030
                  Facsimile No.: 972 582 1430

         If to the ACFS Agent:

                  American Capital Financial Services, Inc.
                  Two Bethesda Metro Center, 14th Floor

<PAGE>
[NAME OF FINANCIAL INSTITUTION]
Page 4

                  Bethesda, Maryland 20814
                  Attention: Compliance Officer -- ACS/ACE
                  Telephone No.: 301 951 6122
                  Facsimile No.: 301 654 6714

                  with a copy to:

                  American Capital Strategies, Ltd.
                  2200 Ross Ave., Ste. 4500W
                  Dallas, Texas 75201
                  Attention: Jeffrey N. MacDowell
                  Telephone No.: 214 273 6630
                  Facsimile No.: 214 273 6635

         If to you: As indicated on the attached Account Schedule

         All notices or other communications provided for hereunder shall be in
writing (including by facsimile transmission) and shall be deemed to have been
duly given or made (i) in the case of delivery by hand, when delivered, (ii) in
the case of delivery by mail, three business days (meaning a day other than
Saturday, Sunday or a day on which commercial banks in [CITY, STATE] are
authorized to close) after being deposited in the mails, postage prepaid, or
(iii) in the case of delivery by facsimile transmission, when delivered or
transmitted by facsimile machine, provided that any matter transmitted by
facsimile (a) shall be immediately confirmed by a telephone call to the
recipient at the number specified herein and (b) shall be followed promptly by a
hard copy original thereof.

         Notwithstanding anything to the contrary in this letter agreement: (i)
you shall have only the duties and responsibilities with respect to the matters
set forth herein as is expressly set forth in writing herein and shall not be
deemed to be an agent, bailee or fiduciary for any party hereto; (ii) you shall
be fully protected in acting or refraining from acting in good faith without
investigation on any notice, instruction or request purportedly furnished to you
by the Company or ACFS Agent in accordance with the terms hereof, in which case
the parties hereto agree that you have no duty to make any further inquiry
whatsoever; (iii) it is hereby acknowledged and agreed that you have no
knowledge of (and are not required to know) the terms and provisions of the
Intercreditor Agreement, the Security Agreement, or any other related
documentation or whether any actions by ACFS Agent, the Company or any other
person or entity are permitted thereunder or consistent or inconsistent
therewith; (iv) you shall not be liable to any party hereto or any other person
for any action or failure to act under or in connection with this letter
agreement except to the extent such conduct constitutes your own willful
misconduct or gross negligence (and to the maximum extent permitted by law, you
shall under no circumstances be liable for any incidental, indirect, special,
consequential or punitive damages); and (v) you shall not be liable for losses
or delays caused by force majeure, interruption or malfunction of computer,
transmission or communications facilities, labor difficulties, court order or
decree, the commencement of bankruptcy or other similar proceedings or other
matters beyond your reasonable control.

<PAGE>
[NAME OF FINANCIAL INSTITUTION]
Page 5

         The Company hereby agrees to indemnify, defend and save you harmless
against any loss, liability or expense (including reasonable fees and
disbursements of counsel who may be your employee) incurred in connection with
this letter agreement or the Accounts (except to the extent due to your willful
misconduct or gross negligence) or any interpleader proceeding relating thereto
or incurred at the Company's direction or instruction. ACFS Agent hereby agrees
to indemnify, defend and save you harmless against any loss, liability or
expense (including reasonable fees and disbursements of counsel who may be your
employee) incurred in connection with any actions taken by you under this letter
agreement with respect to the Accounts (except to the extent due to your willful
misconduct or gross negligence). ACFS Agent's and the Company's responsibilities
shall survive the termination hereof.

         You hereby agree that (i) you are a "bank" within the meaning of
Section 9.102 of the Uniform Commercial Code as in effect in the State of Texas
(the "UCC"), (ii) each Account constitutes a "deposit account" within the
meaning of Section 9.102 of the UCC, (iii) this letter agreement shall
constitute an "authenticated record" for purposes of the UCC, and (iv) other
than the Bank Control Letter and the "Prior Letters" (as defined in the Bank
Control Letter), you have not entered into any agreement that grants to or
confers upon any other party control of any Account or any of the Account
Property and you will not enter into any such agreement during the term of this
letter agreement, other than such agreements regarding control of the Accounts
and the other Account Property that you may enter into after the Effective Time
with Travelers; provided, however, that you and the Company hereby further agree
that (a) the interests of each of ACFS Agent and Travelers in the Accounts and
the other Account Property are and shall at all times be subject to and
subordinate to the interests of the Bank Agent therein and (b) the interests of
Travelers in the Accounts and the other Account Property are and shall at all
times be subject to and subordinate to the interests of each of the Bank Agent
and ACFS Agent therein, in each case to the extent and in the manner provided in
the Intercreditor Agreement.

         Each of you and the Company hereby agrees that this letter agreement
grants to and confers upon the ACFS Agent "control" of each Account as
contemplated in Section 9.104 (and similar related provisions) of the UCC, and
the security interest in the Accounts and the other Account Property in favor of
the ACFS Agent is and shall at all times be (a) junior and inferior in right of
priority to any security interest in any Account or any other Account Property
which may have been, or hereafter be, granted to Bank Agent and (b) senior and
superior in right of priority to any security interest in any Account or any
other Account Property which may have been, or hereafter be, granted to
Travelers.

         The Company and you hereby agree that no Account (i) is evidenced by an
instrument (as that term is defined in the UCC) or (ii) constitutes a securities
account or contains securities or investment property (as such terms are defined
in the UCC).

         You hereby agree to comply with the restrictions, authorizations and
instructions set forth or described above in this letter agreement. Further, the
Company hereby agrees and you also acknowledge and agree that each "deposit
account" (as such term is defined in the UCC) maintained by you in the name of,
or for the benefit of, the Company and identified on the attached Account
Schedule (as amended as permitted hereunder) shall be deemed to be an Account
and shall be subject to this letter agreement in all respects.

<PAGE>
[NAME OF FINANCIAL INSTITUTION]
Page 6

         Nothing in this letter agreement shall require you to act in violation
of any applicable laws or any court order.

         This letter agreement supplements, rather than replaces, your deposit
account agreement, terms and conditions and other standard documentation in
effect from time to time with respect to the Accounts or services provided in
connection with the Accounts (the "ACCOUNT DOCUMENTATION"), which Account
Documentation will continue to apply to the Accounts and such services, and the
respective rights, powers, duties, obligations, liabilities and responsibilities
of the parties thereto and hereto, to the extent not expressly conflicting with
the provisions of this letter (however, in the event of any such conflict, the
provisions of this letter agreement shall control).

         This letter agreement shall be governed in accordance with the laws of
the State of Texas. The State of Texas shall be deemed to be your location for
purposes of Section 9.304(b) of the UCC.

      [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

<PAGE>
[NAME OF FINANCIAL INSTITUTION]
Page 7

         If the foregoing accurately sets forth our agreements with respect to
the subject matter hereof, please sign below as indicated and return a signed
copy thereof to the ACFS Agent or its legal counsel at such address as the ACFS
Agent shall provide. This letter agreement may be executed in multiple
counterparts.

         Thank you.

                                     ACE CASH EXPRESS, INC.

                                     By:
                                        ----------------------------------------
                                     Name:
                                          --------------------------------------
                                     Title:
                                           -------------------------------------

Approved as of the date first above written:

AMERICAN CAPITAL FINANCIAL SERVICES, INC., as ACFS Agent

By:
   -------------------------------
Name:
     -----------------------------
Title:
      ----------------------------

Accepted and agreed to as of the date first above written:

[NAME OF FINANCIAL INSTITUTION]

By:
   -------------------------------
Name:
     -----------------------------
Title:
      ----------------------------

<PAGE>
[NAME OF FINANCIAL INSTITUTION]
Page 8

               ACCOUNT SCHEDULE - [NAME OF FINANCIAL INSTITUTION]
                               [DATE OF SCHEDULE]

<Table>
<Caption>
                           Account              Account           Custodial
   State                   Number                Type               Agent
   -----                   -------              -------           ---------
<S>                        <C>                  <C>               <C>

*BANK CONTACT FOR THE FOLLOWING IS [NAME OF CONTACT], FACSIMILE NUMBER [_______]

                                                  (1)
                                                  (2)
                                                  (3)
                                                  (4)

                                                  (1)
                                                  (2)
                                                  (3)
                                                  (4)
</Table>

----------

(1) Currency Account (the "CURRENCY ACCOUNT")

(2) Depository Account (the "DEPOSITORY ACCOUNT")

(3) Operating Account (the "OPERATING ACCOUNT")

(4) Returned Items Account (the "RETURNED ITEMS ACCOUNT")

and each other "deposit account" (as such term is defined in the UCC) maintained
by [NAME OF FINANCIAL INSTITUTION] from time to time in the name of, or for the
benefit of, the Company and identified on a supplemental schedule
<PAGE>
                                                                     EXHIBIT F-2

                              [COMPANY LETTERHEAD]

                              ___________ ___, 2003

                         SUBORDINATED CONTROL AGREEMENT

[NAME OF FINANCIAL INSTITUTION]
[                                   ]
 -----------------------------------
[                                   ]
 -----------------------------------
Attn:    [                          ]
          --------------------------

         Re: Each of the accounts described on the attached Account Schedule
             (collectively, the "ACCOUNTS" and individually, an "ACCOUNT")

Ladies and Gentlemen:

         Reference is made to (i) that certain Intercreditor Agreement dated as
of [___________ ___], 2003, by and among Ace Cash Express, Inc., a Texas
corporation (the "COMPANY"), Wells Fargo Bank Texas, National Association, as
Administrative Agent (the "BANK AGENT") for the lenders (the "LENDERS") from
time to time party to the Bank Agreement (as such term is defined in the
Intercreditor Agreement), American Capital Financial Services, Inc., as Agent
("ACFS AGENT") for the purchasers ("PURCHASERS") from time to time party to the
ACFS Note Agreement (as such term is defined in the Intercreditor Agreement),
and Travelers Express Company, Inc. ("TRAVELERS")(as such Intercreditor
Agreement may be amended, restated, supplemented or otherwise modified from time
to time, the "INTERCREDITOR AGREEMENT") and (ii) that certain Assignment of
Deposit Accounts and Security Agreement dated as of [___________ ___], 2003, by
the Company in favor of the ACFS Agent for the benefit of the Purchasers (as
such Assignment of Deposit Accounts and Security Agreement may be amended,
restated, supplemented or otherwise modified from time to time, the "SECURITY
AGREEMENT").

         Pursuant to the Security Agreement, the Company has granted control of
the Accounts to the ACFS Agent and granted to the ACFS Agent a security interest
in the Accounts and the Company's monies, funds, checks, negotiable instruments
and any other items or property deposited and/or held in the Accounts from time
to time and all proceeds thereof (all of the foregoing hereinafter collectively
referred to as the "ACCOUNT PROPERTY") subject only to the prior perfected
security interest of the Bank Agent therein as set forth below, in each case, to
secure certain obligations and indebtedness of the Company owing to the ACFS
Agent and the Purchasers described therein. The Company hereby notifies you, and
you hereby acknowledge, that the Company has granted a security interest to the
ACFS
<PAGE>

[NAME OF FINANCIAL INSTITUTION]
Page 2

Agent in, and control of, the Accounts and the other Account Property subject to
the rights of the Bank Agent therein as set forth below.

         This letter shall become effective as of 6:00 a.m., Dallas, Texas time
(the "EFFECTIVE TIME"), on the date first written above upon execution of this
letter by each party hereto and delivery of the same to you.

         The Company hereby agrees with the ACFS Agent, and you hereby
acknowledge, that (a) the Company has no power to withdraw from the Accounts
except as expressly permitted hereunder and under that certain letter agreement
between you and the Bank Agent of even date herewith (the "BANK CONTROL LETTER")
and (b) subject to the following paragraph, the ACFS Agent may, at any time by
written notice to you, terminate or suspend any and all rights of the Company
related to the Accounts.

         The Company hereby irrevocably and unconditionally authorizes,
instructs and directs you to comply, and you hereby agree to comply, with all
instructions originated by the ACFS Agent with respect to the Accounts or
directing disposition of any or all monies, funds, checks, negotiable
instruments or any other items or properties in the Accounts, in each case
without joinder or further consent by the Company and as promptly after receipt
thereof as is reasonably possible so long as each such instruction is
accompanied by a written certification from ACFS Agent stating that ACFS Agent
is authorized to originate such instruction under, and in accordance with, the
Intercreditor Agreement; provided, however, that in the event of any insolvency,
bankruptcy, liquidation, reorganization or other similar proceedings or any
receivership proceedings in connection therewith, relative to the Company, the
Company hereby irrevocably and unconditionally authorizes, instructs and directs
you to comply, and you hereby agree to comply, with all instructions originated
by the ACFS Agent with respect to the Accounts or directing disposition of any
or all monies, funds, checks, negotiable instruments or any other items or
properties in the Accounts, so long as each such instruction is accompanied by a
written certification from ACFS Agent stating that a court of competent
jurisdiction has authorized ACFS Agent to originate such instruction and having
attached thereto a copy of an order of such court granting to ACFS Agent such
authority, in each case without joinder or further consent by the Company and as
promptly after receipt thereof as is reasonably possible. You are entitled to
rely upon and are authorized and directed to follow all instructions of the ACFS
Agent and you have no duty of inquiry as to the authorization or authenticity of
any such instructions so long as they are given by an individual designated by
the ACFS Agent and accompanied by either of the foregoing described
certifications.

         You agree to indicate by appropriate entry in your records with respect
to the Accounts or the Account Property the security interest of the ACFS Agent
therein.

         You agree to deliver copies of all bank statements which you send to
the Company (by law, agreement or otherwise) to the ACFS Agent at the address
specified herein, if so requested by the ACFS Agent in writing. You are further
authorized, and the Company

<PAGE>
[NAME OF FINANCIAL INSTITUTION]
Page 3

hereby consents, to deliver any information requested by the ACFS Agent related
to the Accounts, with any reasonable expense therefor to be paid by the Company.

         You hereby waive and release any and all rights of offset, claims or
counterclaims against, and any and all security interests, banker's liens or
similar rights in or to, the Accounts or the Account Property (whether arising
under law, agreement or otherwise) other than the security interests in the
Accounts and the Account Property and your interests therein (if any) which have
been granted to Bank Agent.

         These instructions may only be modified in writing by an agreement
executed by you, the Company and the ACFS Agent; provided, however, that the
attached Account Schedule may be amended by delivery of a revised schedule from
the Company and the ACFS Agent to you. All notices hereunder shall be sent to
the following addressee:

         If to the Company:

                  Ace Cash Express, Inc.
                  1231 Greenway Dr., Ste. 800
                  Irving, Texas 75038
                  Attention: Jay B. Shipowitz
                  Telephone No.: 972 550 5030
                  Facsimile No.: 972 582 1430

         If to the ACFS Agent:

                  American Capital Financial Services, Inc.
                  Two Bethesda Metro Center, 14th Floor
                  Bethesda, Maryland 20814
                  Attention: Compliance Officer -- ACS/ACE
                  Telephone No.: 301 951 6122
                  Facsimile No.: 301 654 6714

                  with a copy to:

                  American Capital Strategies, Ltd.
                  2200 Ross Ave., Ste. 4500W
                  Dallas, Texas 75201
                  Attention: Jeffrey N. MacDowell
                  Telephone No.: 214 273 6630
                  Facsimile No.: 214 273 6635

         If to you:

                  [NAME OF FINANCIAL INSTITUTION]
                  [                                  ]
                   ----------------------------------
                  [                                  ]
                   ----------------------------------
                  Attention: [                ]
                              ----------------
                  Telephone No.: [            ]
                                  ------------
                  Facsimile No.: [            ]
                                  ------------

<PAGE>
[NAME OF FINANCIAL INSTITUTION]
Page 4

         All notices or other communications provided for hereunder shall be in
writing (including by facsimile transmission) and shall be deemed to have been
duly given or made (i) in the case of delivery by hand, when delivered, (ii) in
the case of delivery by mail, three business days (meaning a day other than
Saturday, Sunday or a day on which commercial banks in [CITY, STATE] are
authorized to close) after being deposited in the mails, postage prepaid, or
(iii) in the case of delivery by facsimile transmission, when delivered or
transmitted by facsimile machine, provided that any matter transmitted by
facsimile (a) shall be immediately confirmed by a telephone call to the
recipient at the number specified herein and (b) shall be followed promptly by a
hard copy original thereof.

         Notwithstanding anything to the contrary in this letter agreement: (i)
you shall have only the duties and responsibilities with respect to the matters
set forth herein as is expressly set forth in writing herein and shall not be
deemed to be an agent, bailee or fiduciary for any party hereto; (ii) you shall
be fully protected in acting or refraining from acting in good faith without
investigation on any notice, instruction or request purportedly furnished to you
by the Company or ACFS Agent in accordance with the terms hereof, in which case
the parties hereto agree that you have no duty to make any further inquiry
whatsoever; (iii) it is hereby acknowledged and agreed that you have no
knowledge of (and are not required to know) the terms and provisions of the
Intercreditor Agreement, the Security Agreement, or any other related
documentation or whether any actions by ACFS Agent, the Company or any other
person or entity are permitted thereunder or consistent or inconsistent
therewith; (iv) you shall not be liable to any party hereto or any other person
for any action or failure to act under or in connection with this letter
agreement except to the extent such conduct constitutes your own willful
misconduct or gross negligence (and to the maximum extent permitted by law, you
shall under no circumstances be liable for any incidental, indirect, special,
consequential or punitive damages); and (v) you shall not be liable for losses
or delays caused by force majeure, interruption or malfunction of computer,
transmission or communications facilities, labor difficulties, court order or
decree, the commencement of bankruptcy or other similar proceedings or other
matters beyond your reasonable control.

         The Company hereby agrees to indemnify, defend and save you harmless
against any loss, liability or expense (including reasonable fees and
disbursements of counsel who may be your employee) incurred in connection with
this letter agreement or the Accounts (except to the extent due to your willful
misconduct or gross negligence) or any interpleader proceeding relating thereto
or incurred at the Company's direction or instruction. ACFS Agent hereby agrees
to indemnify, defend and save you harmless against any loss, liability or
expense (including reasonable fees and disbursements of counsel who may be your
employee) incurred in connection with any actions taken by you under this letter
agreement with respect to the Accounts (except to the extent due to your willful
misconduct or gross negligence). ACFS Agent's and the Company's responsibilities
shall survive the termination hereof.

         You hereby agree that (i) you are a "bank" within the meaning of
Section 9.102 of the Uniform Commercial Code as in effect in the State of Texas
(the "UCC"), (ii) each Account constitutes a "deposit account" within the
meaning of Section 9.102 of the UCC, (iii) this letter agreement shall
constitute an "authenticated record" for purposes of the UCC, and (iv) other
than the Bank Control Letter and the "Prior Letters" (as defined in the Bank
Control Letter), you have

<PAGE>
[NAME OF FINANCIAL INSTITUTION]
Page 5

not entered into any agreement that grants to or confers upon any other party
control of any Account or any of the Account Property and you will not enter
into any such agreement during the term of this letter agreement, other than
such agreements regarding control of the Accounts and the other Account Property
that you may enter into after the Effective Time with Travelers; provided,
however, that you and the Company hereby further agree that (a) the interests of
each of ACFS Agent and Travelers in the Accounts and the other Account Property
are and shall at all times be subject to and subordinate to the interests of the
Bank Agent therein and (b) the interests of Travelers in the Accounts and the
other Account Property are and shall at all times be subject to and subordinate
to the interests of each of the Bank Agent and ACFS Agent therein, in each case
to the extent and in the manner provided in the Intercreditor Agreement.

         Each of you and the Company hereby agrees that this letter agreement
grants to and confers upon the ACFS Agent "control" of each Account as
contemplated in Section 9.104 (and similar related provisions) of the UCC, and
the security interest in the Accounts and the other Account Property in favor of
the ACFS Agent is and shall at all times be (a) junior and inferior in right of
priority to any security interest in any Account or any other Account Property
which may have been, or hereafter be, granted to Bank Agent and (b) senior and
superior in right of priority to any security interest in any Account or any
other Account Property which may have been, or hereafter be, granted to
Travelers.

         The Company and you hereby agree that no Account (i) is evidenced by an
instrument (as that term is defined in the UCC) or (ii) constitutes a securities
account or contains securities or investment property (as such terms are defined
in the UCC).

         You hereby agree to comply with the restrictions, authorizations and
instructions set forth or described above in this letter agreement. Further, the
Company hereby agrees and you also acknowledge and agree that each "deposit
account" (as such term is defined in the UCC) maintained by you in the name of,
or for the benefit of, the Company and identified on the attached Account
Schedule (as amended as permitted hereunder) shall be deemed to be an Account
and shall be subject to this letter agreement in all respects.

         Nothing in this letter agreement shall require you to act in violation
of any applicable laws or any court order.

         This letter agreement supplements, rather than replaces, your deposit
account agreement, terms and conditions and other standard documentation in
effect from time to time with respect to the Accounts or services provided in
connection with the Accounts (the "ACCOUNT DOCUMENTATION"), which Account
Documentation will continue to apply to the Accounts and such services, and the
respective rights, powers, duties, obligations, liabilities and responsibilities
of the parties thereto and hereto, to the extent not expressly conflicting with
the provisions of this letter (however, in the event of any such conflict, the
provisions of this letter agreement shall control).

         This letter agreement shall be governed in accordance with the laws of
the State of Texas. The State of Texas shall be deemed to be your location for
purposes of Section 9.304(b) of the UCC.

<PAGE>
[NAME OF FINANCIAL INSTITUTION]
Page 6

      [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

<PAGE>
[NAME OF FINANCIAL INSTITUTION]
Page 7

         If the foregoing accurately sets forth our agreements with respect to
the subject matter hereof, please sign below as indicated and return a signed
copy thereof to the ACFS Agent or its legal counsel at such address as the ACFS
Agent shall provide. This letter agreement may be executed in multiple
counterparts.

         Thank you.

                                      ACE CASH EXPRESS, INC.

                                      By:
                                         ---------------------------------------
                                      Name:
                                           -------------------------------------
                                      Title:
                                            ------------------------------------

Approved as of the date first above written:

AMERICAN CAPITAL FINANCIAL SERVICES, INC., as ACFS Agent

By:
   -------------------------------
Name:
     -----------------------------
Title:
      ----------------------------

Accepted and agreed to as of the date first above written:

[NAME OF FINANCIAL INSTITUTION]

By:
   -------------------------------
Name:
     -----------------------------
Title:
      ----------------------------

<PAGE>
[NAME OF FINANCIAL INSTITUTION]
Page 8

                    Account Schedule - [NAME OF INSTITUTION]

<Table>
<Caption>
      State                 Account Number               Account Type
      -----                 --------------               ------------
<S>                         <C>                          <C>
                                                         [(1)/(2)/(3)]
</Table>

----------

(1) Currency Account (the "CURRENCY ACCOUNT")

(2) Depository Account (the "DEPOSITORY ACCOUNT")

(3) Returned Items Account (the "RETURNED ITEMS ACCOUNT")

and each other "deposit account" (as such term is defined in the UCC) maintained
by [NAME OF FINANCIAL INSTITUTION] from time to time in the name of, or for the
benefit of, the Company and identified on a supplemental schedule

<PAGE>

EXHIBIT G

                              [COMPANY LETTERHEAD]

                            _______________ ___, 2003

[NAME OF ARMORED COURIER]
[                          ]
 --------------------------
[                          ]
 --------------------------
Attn:    [                 ]
          -----------------

         Re:   Custodial Arrangement

Ladies and Gentlemen:

         Reference is made to that certain Intercreditor Agreement dated as of
[_____________ ___], 2003, by and among Ace Cash Express, Inc., a Texas
corporation (the "COMPANY"), Wells Fargo Bank Texas, National Association, as
Administrative Agent ("BANK AGENT") for itself and all other lenders ("LENDERS")
from time to time party to the Bank Agreement (as such term is defined in the
Intercreditor Agreement), American Capital Financial Services, Inc., as Agent
("ACFS AGENT") for the purchasers ("PURCHASERS") from time to time party to the
ACFS Note Agreement (as such term is defined in the Intercreditor Agreement),
and Travelers Express Company, Inc. ("TRAVELERS") (as the same may be amended,
restated, supplemented or otherwise modified from time to time, the
"INTERCREDITOR AGREEMENT").

         The Company hereby notifies [NAME OF ARMORED COURIER] ("CUSTODIAL
AGENT"), and Custodial Agent hereby acknowledges, that the Company has assigned,
pledged and granted to the Bank Agent, for the benefit of Bank Agent and the
Lenders, a first priority security interest in certain property of the Company
(the "ASSETS"), including all of the Company's currency, coin, monies, funds,
checks, negotiable instruments, securities and other property and proceeds
thereof received, transported and delivered by Custodial Agent from time to time
(the "PROPERTY") in accordance with certain agreements and/or contracts from
time to time between Custodial Agent and the Company (as amended, restated,
supplemented or otherwise modified from time to time, collectively the
"CONTRACTS"; the Assets, the Property, and the Contracts are collectively
referred to herein as the "COLLATERAL") and pertaining to the store locations of
the Company as set forth on the attached schedule (the "TERRITORY"), to secure
certain obligations and indebtedness of the Company owing to the Bank Agent and
the Lenders. The Company also notifies Custodial Agent that, and Custodial Agent
hereby acknowledges that, (a) the Company has assigned, pledged and granted to
the ACFS Agent, for the benefit of ACFS Agent and the Purchasers, a second
priority security interest in the Collateral to secure certain obligations and
indebtedness of the Company owing to the ACFS Agent and the Purchasers and (b)
the Company has assigned, pledged and granted to Travelers a third priority
security interest in the Collateral to secure certain obligations and
indebtedness of the Company owing to Travelers. Bank Agent, ACFS Agent, and
Travelers are collectively referred to herein as the "SECURED PARTIES" and each
individually as a "SECURED PARTY".

<PAGE>

[NAME OF ARMORED COURIER]
Page 2

         WITH RESPECT TO ANY AND ALL INSTRUCTIONS CUSTODIAL AGENT MAY RECEIVE
FROM ANY SECURED PARTY, THIS LETTER AGREEMENT, EFFECTIVE AS OF THE EFFECTIVE
DATE (AS HEREINAFTER DEFINED), SUPERSEDES ALL PRIOR LETTERS OF INSTRUCTION TO
WHICH CUSTODIAL AGENT IS A PARTY OR WHICH HAVE BEEN DELIVERED TO CUSTODIAL AGENT
BY THE COMPANY ("PRIOR LETTERS"), BUT EXPRESSLY EXCLUDING LETTERS DELIVERED BY
ACE FUNDING, LLC WHICH SHALL REMAIN IN EFFECT.

         This letter shall become effective as of the date first written above
(the "EFFECTIVE DATE") upon execution of this letter by each party hereto and
delivery of the same to Custodial Agent.

         1. Notwithstanding any provision to the contrary contained in the
Contracts:

         (a) Custodial Agent is hereby irrevocably authorized and directed by
the Company, upon the request of any Secured Party or its designee (as any
Secured Party may direct) delivered in accordance with Paragraph 3 hereof, to
deliver to any Secured Party or its designee (as any Secured Party may direct),
to such location or locations in the Territory as may be specified by any
Secured Party or its designee (as any Secured Party may direct), any and all
Property and other Collateral then and thereafter received, transported and
delivered by Custodial Agent pursuant to the Contracts; provided, however, that
in the event of any insolvency, bankruptcy, liquidation, reorganization or other
similar proceedings or any receivership proceedings in connection therewith,
relative to the Company, Custodial Agent is hereby irrevocably authorized and
directed by the Company, to deliver to such persons any and all Property and
other Collateral then and thereafter received, transported and delivered by
Custodial Agent pursuant to the Contracts as may be directed in writing by any
Secured Party so long as each such written direction is accompanied by a written
certification from such Secured Party stating that a court of competent
jurisdiction has authorized such Secured Party to issue such written direction
and having attached thereto a copy of an order of such court granting to such
Secured Party such authority. Custodial Agent acknowledges and agrees to comply
(i) with the preceding authorization and direction from the Company, (ii) with
any such request or instruction from any Secured Party or its designee (as any
Secured Party may direct), and (iii) with any such written direction from any
Secured Party, in each case delivered in accordance with Paragraph 3 hereof. The
Company and each Secured Party agrees that Custodial Agent shall incur no
liability whatsoever to the Company or any Secured Party in acting upon any
request or instruction which Custodial Agent reasonably believes to have been
given in the manner provided in Paragraph 3 by an authorized representative of
any Secured Party. Instructions of any Secured Party or its designee (as any
Secured Party may direct) shall control, and, except as permitted by any Secured
Party or its designee (as any Secured Party may direct) below in this letter
agreement or otherwise in writing, the Company shall not have any right or
authority whatsoever to instruct Custodial Agent with respect to the Property or
any other Collateral.

         (b) The Company shall pay directly to Custodial Agent all costs and
expenses payable to Custodial Agent pursuant to the Contracts, including any
additional cost or expense which Custodial Agent shall require if Custodial
Agent is directed by any Secured Party to perform any service additional to or
different from the services specifically set forth in the Contracts.

<PAGE>

[NAME OF ARMORED COURIER]
Page 3

Custodial Agent hereby waives and releases any and all rights of offset or
counterclaim against, and any and all carrier's liens, security interests or
similar rights in, the Property or the other Collateral which Custodial Agent
may have by reason of the Contracts or otherwise, except to the extent necessary
to pay Custodial Agent the fees and expenses due under the Contracts.

         (c) This letter agreement shall not be modified or amended without the
prior written consent of Custodial Agent, each Secured Party and the Company. It
is expressly agreed that the Contracts may be amended to add thereto or to
delete therefrom a location by an amendment duly executed by Custodial Agent and
the Company, and that the Contracts as amended shall thereafter continue in full
force and effect. This letter agreement shall apply to the Contracts as amended.
The Company shall notify each Secured Party of any and all such amendments and
will provide copies thereof upon written request from any Secured Party.

         (d) Custodial Agent hereby acknowledges that the Bank Agent, for its
benefit and the benefit of the Lenders, has been granted by the Company, and
that the Bank Agent, for its benefit and the benefit of the Lenders, currently
holds, a first priority security interest in the Collateral. Custodial Agent
hereby acknowledges that the ACFS Agent, for its benefit and the benefit of the
Purchasers, has been granted by the Company, and that the ACFS Agent, for its
benefit and the benefit of the Purchasers, currently holds, a second priority
security interest in the Collateral, subject in all cases to the prior security
interest of the Bank Agent, for its benefit and the benefit of the Lenders.
Custodial Agent hereby acknowledges that Travelers has been granted by the
Company, and that Travelers currently holds, a third priority security interest
in the Collateral, subject in all cases to the prior security interest of the
Bank Agent, for its benefit and the benefit of the Lenders, and the prior
security interest of ACFS Agent, for its benefit and the benefit of the
Purchasers. Custodial Agent agrees that at all times during which Custodial
Agent is in possession of any and all Property or other Collateral, Custodial
Agent shall maintain possession of and hold such Property and such other
Collateral for the benefit of Bank Agent, for its benefit and the benefit of the
Lenders, ACFS Agent, for its benefit and the benefit of the Purchasers, and
Travelers.

         (e) Custodial Agent agrees that if any Secured Party succeeds to the
interest of the Company in the Contracts by means of enforcement of its security
interest or otherwise, Custodial Agent shall, upon notice to Custodial Agent
from such Secured Party in accordance with Paragraph 3 below of such succession
of interest, accept, recognize and treat such Secured Party, and its
transferees, successors and/or assigns, as a party to the Contracts in the name
and stead of the Company and shall continue to perform all obligations of
Custodial Agent under the Contracts as long as the obligations of the Company
are similarly satisfied by such Secured Party, or its transferees, successors
and/or assigns (including the payment of amounts owed to Custodial Agent
pursuant to the Contracts) and as long as the Contracts otherwise remain in
effect.

         (f) Custodial Agent agrees to provide each Secured Party with such
information and records relating solely to the performance of the Contracts as
such Secured Party may reasonably request from time to time; provided that,
Custodial Agent shall furnish to the Company a copy of all such information and
records which are so provided to any Secured Party. The Company agrees to
reimburse Custodial Agent for any additional costs and expenses incurred in
providing such information to the Secured Parties.

<PAGE>

[NAME OF ARMORED COURIER]
Page 4

         (g) In the event of loss of the Property, Custodial Agent's liability
shall be governed by the terms of the Contracts, provided that either the
Secured Parties or the Company (as agent for the Secured Parties) shall have the
right to present a claim to Custodial Agent for loss reimbursement in the manner
specified and allowed under the terms of the Contracts. Until this letter
agreement shall have been terminated, notwithstanding the terms of the
Contracts, any loss reimbursement for $25,000 or more shall be made payable to
any Secured Party or its designee (as any Secured Party may direct), unless
Custodial Agent is expressly directed in writing by any Secured Party or its
designee (as any Secured Party may direct) to make such loss reimbursement
payable directly to the Company. Any loss reimbursement for less than $25,000
may be made payable to the Company, provided that any loss reimbursement paid
after any Secured Party or its designee (as any Secured Party may direct) has
delivered a notice to Custodial Agent directing disposition of the Property as
provided in Paragraph 1(a) above or Paragraph 2(c) below shall be made payable
to the Secured Parties.

         (h) Custodial Agent shall have no liability in the event of any dispute
involving ownership of the Property or any other matter relating to this letter
agreement other than Custodial Agent's nonperformance of its agreements and
obligations set forth herein, and the Company agrees to indemnify and hold
Custodial Agent harmless from liability relating to a dispute over ownership of
the Property, unless such claim is the result of Custodial Agent's gross
negligence or willful misconduct. The Company agrees to pay all court costs and
reasonable attorneys' fees which Custodial Agent may incur as a result of any
such dispute, provided that such dispute or any claim arising therefrom is not
the result of Custodial Agent's nonperformance of its obligations set forth
herein or its gross negligence or willful misconduct.

         2. Subject to the terms of Paragraph 1 above:

         (a) Custodial Agent shall continue, pursuant to the Contracts, to pick
up sealed shipments said or represented to contain currency from the financial
institution set forth on the attached schedule ("DESIGNATED LOCAL BANK") for
delivery to the retail stores of the Company (the "STORES") in the Territory.
The sealed shipments shall be delivered by Custodial Agent to the Stores
specifically designated by the Company, but (notwithstanding any provision of
the Contracts to the contrary) no shipment shall be delivered to any location
other than one or more of the Stores. Notwithstanding any provision of the
Contracts to the contrary, only shipments said or represented to contain only
the Company employee payroll checks and/or mail (including the Company's
internal correspondence) may be delivered to the regional office or offices of
the Company in the Territory.

         (b) Furthermore, Custodial Agent shall continue to pick up sealed
shipments said to contain all excess cash, checks, drafts and other instruments
that are made available to Custodial Agent at the Stores and shall deliver them
only to the Designated Local Bank pursuant to the Contracts.

         (c) The instructions contained in this Paragraph 2 may be revoked at
any time by notice to that effect by an authorized representative of any Secured
Party or its designee (as any Secured Party may direct) given to Custodial Agent
in accordance with Paragraph 3 of this letter.

<PAGE>

[NAME OF ARMORED COURIER]
Page 5

         3. All requests, instructions and notices to be given pursuant to this
letter agreement shall be sent to the following addressee:

         If to the Company:
                  Ace Cash Express, Inc.
                  1231 Greenway Dr., Ste. 800
                  Irving, Texas 75038
                  Attention:  Jay B. Shipowitz
                  Telephone No.:  972 550 5030
                  Facsimile No.:  972 582 1430

         If to Custodial Agent:
                  [NAME OF CUSTODIAL AGENT]
                  [                                  ]
                   ----------------------------------
                  [                                  ]
                   ----------------------------------
                  Attention:        [                ]
                                     ----------------
                  Telephone No.: [          ]
                                  ----------
                  Facsimile No.:  [         ]
                                   ---------

         If to the Bank Agent:
                  Wells Fargo Bank Texas, National Association
                  4975 Preston Park Road, Suite 280
                  Plano, Texas 75093
                  Attention:        Michael B. Sullivan
                  Telephone No.:  214 740-1595
                  Facsimile No.:   214 969-0906

         If to the ACFS Agent:
                  American Capital Financial Services, Inc.
                  Two Bethesda Metro Center, 14th Floor
                  Bethesda, Maryland 20814
                  Attention:  Compliance Officer -- ACS/ACE
                  Telephone No.:  301 951 6122
                  Facsimile No.:   301 654 6714

                  with a copy to:

                  American Capital Strategies, Ltd.
                  2200 Ross Ave., Ste. 4500W
                  Dallas, Texas 75201
                  Attention:  Jeffrey N. MacDowell
                  Telephone No.:  214 273 6630
                  Facsimile No.:  214 273 6635

<PAGE>
[NAME OF ARMORED COURIER]
Page 6

         If to Travelers:
                  Travelers Express Company, Inc.
                  1550 Utica Ave. South MS 8020
                  Minneapolis, Minnesota 55416
                  Attention:        Chief Legal Counsel
                  Telephone No.: 952 591 3000
                  Facsimile No.:   952 591 3859

         Unless provided otherwise in this paragraph, all requests, instructions
and notices provided for hereunder shall be in writing (including by facsimile
transmission) and shall be deemed to have been duly given or made (i) in the
case of delivery by hand, when delivered, (ii) in the case of delivery by mail,
three business days (meaning a day other than Saturday, Sunday or a day on which
commercial banks in [CITY, STATE] are authorized to close) after being deposited
in the mails, postage prepaid, or (iii) in the case of delivery by facsimile
transmission, when delivered or transmitted by facsimile machine. All requests,
instructions and notices to be given to Custodial Agent by any Secured Party
hereunder may (a) be oral but shall not be binding until confirmed in writing,
provided that such Secured Party delivers written confirmation of such request,
instruction or notice, as provided in the preceding sentence, within one
business day after such oral request, instruction or notice and provided further
than notwithstanding anything to the contrary contained herein, the Custodial
Agent may immediately rely on such oral notice without liability to the Company
and, (b) in the absence of Custodial Agent's representative named herein, may be
given to the Branch Manager or, in his or her absence, an Assistant Branch
Manager, of the Designated Local Bank as set forth on the attached schedule.
Custodial Agent and Designated Local Bank may rely upon oral instructions from
any Secured Party, pending written confirmation, without liability to the
Company. Custodial Agent shall comply with any request, instruction or notice as
promptly after receipt thereof as is reasonably possible.

         4. The information set forth on the attached schedule may be amended by
the Company delivering a revised schedule to Bank Agent, ACFS Agent, Travelers,
and Custodial Agent.

         5. By accepting this letter agreement, Custodial Agent represents that
the Contracts are in full force and effect and that Custodial Agent will not
amend the Contracts in any manner except in accordance with paragraph 1(c).
Custodial Agent agrees that the Contracts will not be terminated without at
least ten (10) days' prior written notice to the Secured Parties.

      [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

<PAGE>

[NAME OF ARMORED COURIER]
Page 7

         If the foregoing accurately sets forth our agreements with respect to
the subject matter hereof, please sign below as indicated and return a signed
copy thereof to the Bank Agent or its legal counsel at such address as the Bank
Agent shall provide. This letter agreement may be executed in multiple
counterparts.

                              Yours very truly,

                              ACE CASH EXPRESS, INC.

                              By:
                                 ----------------------------------------------

                              Name:
                                   --------------------------------------------

                              Title:
                                    -------------------------------------------

Approved as of the date first above written:

WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION, as Bank Agent

By:
   ----------------------------------------------

Name:
     --------------------------------------------

Title:
      -------------------------------------------

AMERICAN CAPITAL FINANCIAL SERVICES, INC., as ACFS Agent

By:
   ----------------------------------------------

Name:
     --------------------------------------------

Title:
      -------------------------------------------

TRAVELERS EXPRESS COMPANY, INC., as Travelers

By:
   ----------------------------------------------

Name:
     --------------------------------------------

Title:
      -------------------------------------------

Accepted and agreed to as of the date first above written:

[NAME OF ARMORED COURIER]

By:
   ----------------------------------------------

Name:
     --------------------------------------------

Title:
      -------------------------------------------

<PAGE>

[NAME OF ARMORED COURIER]
Page 8

                            [NAME OF ARMORED COURIER]
                               [DATE OF SCHEDULE]

Store Number    City & State      Designated Local Bank and Contact Information
------------    ------------      ---------------------------------------------

<PAGE>

                                    EXHIBIT H
                                       TO
                             NOTE PURCHASE AGREEMENT

                                     FORM OF
                             COMPLIANCE CERTIFICATE

                          Date: ______________, _______

         This certificate is given by ACE CASH EXPRESS, INC. (the "Company")
pursuant to that certain Note Purchase Agreement, dated as of March 31, 2003,
among Company, the purchasers signatory thereto and American Capital Financial
Services, Inc., as administrative agent for the purchasers (in such capacity,
the "Agent"), as such agreement may have been amended, restated, supplemented or
otherwise modified from time to time (the "Purchase Agreement"). Capitalized
terms used herein without definition shall have the meanings set forth in the
Purchase Agreement.

         The officer executing this certificate is the chief financial officer
of the Company and as such is duly authorized to execute and deliver this
certificate on behalf of the Company. By executing this certificate such officer
hereby certifies to Agent that:

         (a)      the financial statements delivered with this certificate in
accordance with Section 7.1(e) of the Purchase Agreement fairly present in all
material respects the consolidated financial condition of the Company as of the
dates of such financial statements;

         (b)      he has reviewed the terms of the Purchase Agreement and the
Notes and have made, or caused to be made under my supervision, a review in
reasonable detail of the transactions and conditions of the Company during the
accounting period covered by such financial statements;

         (c)      such review has not disclosed the existence during or at the
end of such accounting period, and he has no knowledge of the existence, as of
the date hereof, of any condition or event that constitutes a Default or an
Event of Default, [except as set forth in Exhibit A hereto which includes a
description of the nature and period of existence of such Default or an Event of
Default and what action the Company has taken, are undertaking and propose to
take with respect thereto]; and

         (d)      the Company is in compliance with the covenants contained in
Section 7.3 of the Purchase Agreement, as demonstrated below, except as set
forth below or described in Exhibit A attached hereto.

         IN WITNESS WHEREOF , the Company has caused this Certificate to be
executed by its ______________________ this ____ day of ____________, _____.

                                        ACE CASH EXPRESS, INC.

                                        By:_____________________________________
                                        Name:___________________________________
                                        Title:__________________________________
<PAGE>

EXHIBIT I

                             INTERCREDITOR AGREEMENT

         This INTERCREDITOR AGREEMENT (this "Agreement") dated as of March 31,
2003 is by and among ACE CASH EXPRESS, INC., a Texas corporation (the "Debtor"),
WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION, a national banking association
("WFB"), as Administrative Agent (WFB in such capacity, the "Bank Agent") for
the lenders from time to time a party to the Bank Agreement (as hereinafter
defined), AMERICAN CAPITAL FINANCIAL SERVICES, INC., a Delaware corporation
("ACFS"), as Administrative Agent (ACFS in such capacity, the "ACFS Agent") for
the purchasers time to time party to the ACFS Note Agreement (as hereinafter
defined), TRAVELERS EXPRESS COMPANY, INC., a Minnesota corporation, on behalf of
itself and MoneyGram Payment Systems, Inc., and Moneyline Express, Inc.,
(collectively, "Travelers").

                                   WITNESSETH:

         WHEREAS, the Debtor, Bank Agent, certain other parties in other
capacities, and certain lenders (the "Lenders") have entered into that certain
Credit Agreement of even date herewith (as amended, supplemented, restated or
otherwise modified from time to time, the "Bank Agreement");

         WHEREAS, the Debtor, ACFS Agent and certain purchasers (the
"Purchasers") have entered into that certain Note Purchase Agreement of even
date herewith (as amended, supplemented, restated or otherwise modified from
time to time, the "ACFS Note Agreement");

         WHEREAS, the Debtor and Travelers have entered into that certain Money
Order Agreement dated April 16, 1998, pursuant to which Travelers has agreed to
serve as Debtor's money order supplier (as amended, supplemented, restated or
otherwise modified from time to time, the "Money Order Agreement"), the Debtor
and Travelers have entered into that certain Money Transfer Agreement dated June
30, 2000, pursuant to which Travelers has agreed to serve as Debtor's money
transfer service supplier (as amended, supplemented, restated or otherwise
modified from time to time, the "Money Transfer Agreement"), and the Debtor and
Travelers have entered into that certain Bill Payment Processing and Funds
Transfer Services Agreement dated April 1, 1998, pursuant to which Travelers has
agreed to serve as Debtor's bill payment processing supplier (as amended,
supplemented, restated or otherwise modified from time to time, the "Bill
Payment Agreement", and together with the Money Order Agreement and the Money
Transfer Agreement, the "Travelers Agreements");

         WHEREAS, the Debtor has entered into that certain Assignment of Deposit
Accounts and Security Agreement of even date herewith in favor of the Bank Agent
for the benefit of the Bank Agent and the Lenders (as from time to time amended,
supplemented, restated or otherwise modified, the "Bank Security Agreement"),
pursuant to which the Debtor has assigned certain of its deposit accounts and
granted a first priority security interest in certain of its assets to Bank
Agent for the benefit of the Bank Agent and the Lenders as collateral security
for its obligations to Bank Agent and Lenders under the Credit Documents;

<PAGE>

         WHEREAS, the Debtor has entered into that certain Assignment of Deposit
Accounts and Security Agreement of even date herewith in favor of the ACFS Agent
for the benefit of the ACFS Agent and the Purchasers (as from time to time
amended, supplemented, restated or otherwise modified, the "ACFS Security
Agreement"), pursuant to which, subject to the security interests granted under
the Bank Security Agreement, the Debtor has assigned certain of its deposit
accounts and granted a second priority security interest in certain of its
assets to ACFS Agent for the benefit of the ACFS Agent and the Purchasers as
collateral security for its obligations to ACFS Agent and the Purchasers under
the ACFS Note Agreement;

         WHEREAS, the Debtor has entered into that certain Assignment of Deposit
Accounts and Security Agreement of even date herewith in favor of Travelers (as
from time to time amended, supplemented, restated or otherwise modified, the
"Travelers Security Agreement"; the Bank Security Agreement, the ACFS Security
Agreement, and the Travelers Security Agreement, as each may be amended,
supplemented, restated, or otherwise modified from time to time, are
collectively referred to herein as the "Security Agreements" and each
individually as a "Security Agreement"), pursuant to which, subject to the
security interests granted under the Bank Security Agreement and the ACFS
Security Agreement, the Debtor has assigned certain of its deposit accounts and
granted a third priority security interest in certain of its assets to Travelers
as collateral security for its obligations under the Travelers Agreements;

         WHEREAS, it is a condition precedent to the extension of credit under
the Bank Agreement and the ACFS Note Agreement that the Debtor, Bank Agent (on
behalf of itself and the Lenders), ACFS Agent (on behalf of itself and the
Purchasers), and Travelers enter into this Agreement, pursuant to which:

                  (a) ACFS Agent shall, on behalf of itself and the Purchasers,
         subordinate all security interests and liens securing the obligations
         of the Debtor and its Subsidiaries (as hereinafter defined) owing to
         them (whether granted under the ACFS Security Agreement or otherwise)
         to all security interests and liens securing the obligations of the
         Debtor and its Subsidiaries owing to Bank Agent and the Lenders
         (whether granted under the Bank Security Agreement or otherwise);

                  (b) Travelers shall subordinate all security interests and
         liens securing the obligations of the Debtor and its Subsidiaries owing
         to Travelers (whether under the Travelers Security Agreement or
         otherwise) to all security interests and liens securing the obligations
         of the Debtor and its Subsidiaries owing to Bank Agent and the Lenders
         (whether granted under the Bank Security Agreement or otherwise) and
         ACFS Agent and the Purchasers (whether granted under the ACFS Security
         Agreement or otherwise); and

                  (c) The Bank Agent, on behalf of itself and the Lenders, ACFS
         Agent, on behalf of itself and the Purchasers, and Travelers, shall
         establish the relative payment priority of all obligations now or
         hereafter owing by the Debtor and/or its Subsidiaries to them.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, in order to induce the Lenders under the Bank
Agreement, and the Purchasers under the ACFS Note Agreement, to extend credit
thereunder, and in order to induce Travelers to

                                       2
<PAGE>

perform its obligations under the Travelers Agreements, the parties hereto,
intending to be legally bound, agree as follows:

                                    SECTION 1

                          DEFINITIONS AND OTHER MATTERS

         (a) As used in this Agreement, the following terms shall have the
following meanings (such meanings to be equally applicable to both the singular
and plural forms of the terms defined):

         "ACE Funding" shall mean shall mean ACE Funding, LLC, a Delaware
limited liability company.

         "ACFS Agent" shall mean American Capital Financial Services, Inc., a
Delaware corporation, in its capacity as Administrative Agent under the ACFS
Note Agreement, and its successors and assigns in such capacity.

         "ACFS Event of Default" shall have the meaning attributed to the term
"Event of Default" in Section 1.1 of the ACFS Note Agreement.

         "ACFS Financial Covenant Default" shall mean an ACFS Event of Default
occurring as a result of a violation by the Debtor of Section 7.3(a), (b), (c),
or (d) of the ACFS Note Agreement.

         "ACFS Note Agreement" shall have the meaning set forth in the recitals
to this Agreement.

         "ACFS Notes" shall the "Notes" as such term is defined in Section 1.1
of the ACFS Note Agreement as in effect on the date hereof.

         "ACFS Obligations" shall mean all obligations, liabilities and
indebtedness of each of the Debtor and its Subsidiaries to the Purchasers or
their Affiliates and the ACFS Agent arising under or in connection with the ACFS
Note Agreement or any other document or instrument executed in connection
therewith, and all obligations, liabilities and indemnities of the Debtor and
its Subsidiaries under or in respect of any Hedging Contract entered into by the
Debtor or any of its Subsidiaries with any Purchaser or any Affiliate of any
Purchaser, whether now existing or hereafter created, direct or indirect,
matured or unmatured, liquidated or unliquidated, primary or secondary, due or
not, including without limitation all of their respective obligations,
liabilities and indebtedness with respect to the principal of and interest on
the ACFS Notes (including but not limited to interest accruing after the filing
of any petition in bankruptcy, or the commencement of any insolvency,
reorganization, or like proceeding relating to the Debtor or any of its
Subsidiaries, whether or not a claim for post-filing or post-petition interest
is allowed in such proceeding), and the payment or performance of all other
obligations, liabilities, and indebtedness owed by any of them to the Purchasers
or their Affiliates and the ACFS Agent thereunder or under any one or more
documents or instruments executed and delivered in connection therewith or any
Hedging Contract entered into by the Debtor or any of its Subsidiaries with any
Purchaser or any Affiliate of any Purchaser, including without limitation all
fees, costs, expenses and indemnity obligations thereunder.

                                       3
<PAGE>

         "ACFS Principal Balance" shall mean, as of any date of determination,
an amount equal to the then outstanding unpaid principal balance of the ACFS
Notes plus the then outstanding amount of any Additional Permitted Term Loans.

         "ACFS Principal Payments" shall mean any payments of principal on the
ACFS Notes.

         "Actionable Default" shall mean:

                  (i) with respect to Bank Agent and Lenders, that a Bank Event
         of Default has occurred and is continuing;

                  (ii) with respect to ACFS Agent and Purchasers, that an ACFS
         Event of Default has occurred and is continuing; or

                  (iii) with respect to Travelers, that a Travelers Event of
         Default has occurred and is continuing and, as a result thereof, there
         has been a termination by Travelers of the Money Order Agreement.

         "Additional Permitted Term Loans" shall mean one or more term loans
made after the date hereof by the Purchasers in an aggregate principal amount
not to exceed $15 million.

         "Advance Request" shall mean a written request substantially in the
form of Exhibit D to the Bank Agreement delivered by the Debtor to Bank Agent in
accordance with the Bank Agreement, pursuant to which the Debtor requests
Advances, and, if requested by Bank Agent, certifies the Debtor's compliance
with the financial covenants set forth in the Bank Agreement.

         "Advances" shall mean the Loans from time to time advanced to the
Debtor pursuant to Advance Requests delivered by the Debtor to Bank Agent in
accordance with the Bank Agreement, which Advances shall be for the purposes
permitted by Section 3.13 of the Bank Agreement as in effect on the date hereof.
Any loan or advance made to the Debtor pursuant to an Advance Request shall be
an Advance and Bank Agent shall have no obligation or duty to any Person to
verify or review the accuracy of the information contained in such Advance
Request.

         "Affiliate" shall mean, with respect to any Person, any other Person
which directly or indirectly controls, is controlled by or is under common
control with such Person.

         "Agreement" shall mean this Intercreditor Agreement, as it may be
amended, restated or otherwise modified from time to time.

         "Bank Agent" shall mean WFB and any successor Administrative Agent
appointed pursuant to the terms of the Bank Agreement.

         "Bank Agreement" shall have the meaning set forth in the recitals to
this Agreement.

         "Bank Event of Default" shall have the meaning attributed to the term
"Event of Default" set forth in Article VII of the Bank Agreement.

                                       4
<PAGE>

         "Bank Financial Covenant Default" shall mean a Bank Event of Default
occurring as a result of a violation by the Debtor of Section 6.07. 6.08, 6.09,
or 6.10 of the Bank Agreement.

         "Bank Obligations" shall mean all obligations, liabilities and
indebtedness of each of the Debtor and its Subsidiaries to the Lenders or their
Affiliates and the Bank Agent arising under or in connection with the Bank
Agreement or any other document or instrument executed in connection therewith,
and all obligations, liabilities and indemnities of the Debtor and its
Subsidiaries under or in respect of any Hedging Contract entered into by the
Debtor or any of its Subsidiaries with any Lender or any Affiliate of any
Lender, whether now existing or hereafter created, direct or indirect, matured
or unmatured, liquidated or unliquidated, primary or secondary, due or not,
including without limitation all of their respective obligations, liabilities
and indebtedness with respect to the principal of and interest on the Revolving
Credit Loans and the Seasonal Revolving Credit Loans (including but not limited
to interest accruing after the filing of any petition in bankruptcy, or the
commencement of any insolvency, reorganization, or like proceeding relating to
the Debtor or any of its Subsidiaries, whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding), all fees payable to the
Bank Agent and the Lenders under the Bank Agreement, drawings under any letter
of credit issued under the Bank Agreement, contingent obligations in respect of
undrawn amounts under any letter of credit issued under the Bank Agreement, and
the payment or performance of all other obligations, liabilities, and
indebtedness owed by any of them to the Lenders or their Affiliates and the Bank
Agent thereunder or under any one or more documents or instruments executed and
delivered in connection therewith (including without limitation the other Credit
Documents) or with any letter of credit issued under the Bank Agreement or
Hedging Contract entered into by the Debtor or any of its Subsidiaries with any
Lender or any Affiliate of any Lender, including without limitation all fees,
costs, expenses and indemnity obligations thereunder.

         "Bank Payment Default" shall mean a Bank Event of Default occurring
under clause (a) or clause (b) of Article VII of the Bank Agreement.

         "Bankruptcy Code" shall mean the federal Bankruptcy Code, as amended
from time to time.

         "Beneficiary" shall mean Bank Agent, for its benefit and the ratable
benefit of the Lenders, each Lender, ACFS Agent, for its benefit and the ratable
benefit of the Purchasers, each Purchaser, each Affiliate of a Lender or a
Purchaser that is a party to a Hedging Contract with the Debtor, and Travelers.

         "Beneficiary Agreement" shall mean the Bank Agreement, the ACFS Note
Agreement, the Travelers Agreements, and any Hedging Contract entered into by
the Debtor or any of its Subsidiaries with any Beneficiary or any Affiliate of
any Beneficiary.

         "Bill Payment Agreement" shall have the meaning given to such term in
the recitals to this Agreement.

         "Borrowing Base" shall have the meaning set forth in Section 1.01 of
the Bank Agreement as in effect on the date hereof.

                                       5
<PAGE>

         "Borrowing Base Report" shall have the meaning set forth in Section
1.01 of the Bank Agreement as in effect on the date hereof.

         "Borrowing Notice" shall mean a notice in the form of Exhibit D to the
Bank Agreement as in the effect on the date hereof.

         "Business Day" shall mean any day excluding Saturday, Sunday and any
day which is a legal holiday under the law of the State of Texas or is a day on
which banking institutions located in such State are required or authorized by
law or other governmental action to close.

         "Collateral" means (a) all "Collateral" as set forth in each Security
Agreement, (b) all "Collateral" as set forth in any other Security Document, and
(c) all security interests, liens or charges in, upon, or against any other
property or assets of the Debtor or its Subsidiaries (other than ACE Funding)
arising under the Uniform Commercial Code of any state or under any other law in
favor of any Beneficiary securing any portion of the Obligations or the Secured
Debt, whether or not on property of the Debtor, and any guarantees in favor of
any Beneficiary by any Person guaranteeing the payment or performance of any
portion of the Obligations or the Secured Debt.

         "Collateral Agency Agreement" shall mean that certain Collateral Agency
Agreement of even date herewith among the Debtor, Collateral Agent, Bank Agent,
ACFS Agent, and Travelers, as the same may from time to time be amended,
supplemented, restated, or otherwise modified.

         "Collateral Agent" shall mean Wilmington Trust Company, in its capacity
as collateral agent under the Collateral Agency Agreement, and its successors
and assigns in such capacity.

         "Debt Instrument" shall mean any promissory note or other instrument,
document or agreement evidencing any Secured Debt.

         "Debtor" shall mean Ace Cash Express Inc., a Texas corporation, and its
successors and assigns.

         "Enforcement Action" shall mean (a) with respect to Bank Agent or any
of the Lenders, (i) the acceleration by Bank Agent or any of the Lenders of all
or any portion of the Bank Obligations, (ii) the commencement by the Bank Agent
or any of the Lenders, after the occurrence of a Bank Event of Default, of the
exercise of any of their respective rights under the Bank Agreement, the Bank
Security Agreement, or the other Security Documents executed by the Debtor or
its Subsidiaries (other than ACE Funding) for the benefit of Bank Agent or any
Lender against the Collateral, (iii) the commencement or exercise by Bank Agent
or any of the Lenders of any other right, remedy or enforcement action (whether
at law or in equity) available upon the occurrence of a Bank Event of Default or
(iv) the initiation by Bank Agent or any of the Lenders of an Insolvency
Proceeding against the Debtor or any of its Subsidiaries or any of their
respective assets; (b) with respect to ACFS Agent or any of the Purchasers, (i)
the acceleration by ACFS Agent or any of the Purchasers of all or any portion of
the ACFS Obligations, (ii) the commencement by ACFS Agent or any of the
Purchasers, after the occurrence of an ACFS Event of Default, of the exercise of
any of their respective rights under the ACFS Note Agreement, the ACFS Security
Agreement, or the other Security Documents executed by the Debtor or its

                                       6
<PAGE>

Subsidiaries (other than ACE Funding) for the benefit of the ACFS Agent or any
Purchaser against the Collateral, (iii) the commencement or exercise by ACFS
Agent or any of the Purchasers of any other right, remedy or enforcement action
(whether at law or in equity) available upon the occurrence of a ACFS Event of
Default or (iv) the initiation by ACFS Agent or any of the Purchasers of an
Insolvency Proceeding against the Debtor or any of its Subsidiaries or any of
their respective assets; or (c) with respect to Travelers, (i) the acceleration
by Travelers of all or any portion of the Travelers Obligations, (ii) the
commencement by Travelers, after the occurrence of a Travelers Event of Default,
of the exercise of any of its rights under the Travelers Agreements, the
Travelers Security Agreement, or the other Security Documents executed by the
Debtor or its Subsidiaries (other than ACE Funding) for the benefit of Travelers
against the Collateral, (iii) the commencement or exercise by Travelers of any
other right, remedy or enforcement action (whether at law or in equity)
available upon the occurrence of a Travelers Event of Default or (iv) the
initiation by Travelers of an Insolvency Proceeding against the Debtor or any of
its Subsidiaries or any of their respective assets. "Enforcement Actions" shall
include, without limitation, the delivery to the Collateral Agent of
instructions in accordance with the Collateral Agency Agreement and the terms of
this Agreement and shall exclude all actions by Travelers to terminate, or the
termination of, the Travelers Agreements or any action by Travelers to disable,
or the disablement of, any equipment used by the Debtor pursuant to the
Travelers Agreements.

         "Enforcement Notice" shall mean a written notice from any of (i) Bank
Agent to ACFS Agent and Travelers certifying that an Actionable Default under
clause (i) of the definition thereof has occurred and is continuing and that
Bank Agent intends to commence Enforcement Actions; (ii) ACFS Agent to Bank
Agent and Travelers certifying that an Actionable Default under clause (ii) of
the definition thereof has occurred and is continuing and that ACFS Agent
intends to commence Enforcement Actions; or (iii) Travelers to Bank Agent and
ACFS Agent certifying that an Actionable Default under clause (iii) of the
definition thereof has occurred and is continuing and that Travelers intends to
commence Enforcement Actions.

         "Excess Cash Flow Prepayments" shall mean mandatory prepayments of
principal on the ACFS Notes required pursuant to Section 3.5(b)(iv) of the ACFS
Note Agreement as in effect on the date hereof.

         "Governmental Authority" shall mean any nation or government, any state
or other political subdivision thereof and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government.

         "Guaranty" shall mean each guaranty executed by any of the Debtor's
Subsidiaries (excluding ACE Funding) for the benefit of any Beneficiary, each of
which is identified on Schedule 1 to this Agreement.

         "Hedging Contract" shall mean (a) any agreement providing for options,
swaps, floors, caps, collars, forward sales or forward purchases involving
interest rates, commodities or commodity prices, equities, currencies, bonds, or
indexes based on any of the foregoing, (b) any option, futures, or forwarded
contract traded on an exchange, and (c) any other derivative agreement or other
similar agreement or arrangement.

                                       7
<PAGE>

         "Insolvency Event" shall mean occurrence of any of the following:

                  (a) the Debtor or any Subsidiary shall (i) voluntarily
         commence any proceeding or file any petition seeking liquidation,
         reorganization or other relief under any Federal, state or foreign
         bankruptcy, insolvency, receivership or similar law now or hereafter in
         effect, (ii) consent to the institution of, or fail to contest in a
         timely and appropriate manner, any proceeding or petition described in
         clause (b) below, (iii) apply for or consent to the appointment of a
         receiver, collateral agent, custodian, sequestrator, conservator or
         similar official for the Debtor or any Subsidiary or for a substantial
         part of its assets, (iv) file an answer admitting the material
         allegations of a petition filed against it in any such proceeding, (v)
         make a general assignment for the benefit of creditors, (vi) take any
         action for the purpose of effecting any of the foregoing, or (vii)
         shall become unable, admit in writing its inability or fail generally
         to pay its debts as they become due;

                  (b) an involuntary proceeding shall be commenced or an
         involuntary petition shall be filed seeking (i) liquidation,
         reorganization or other relief in respect of the Debtor or any
         Subsidiary or its debts, or of a substantial part of its assets, under
         any Federal, state or foreign bankruptcy, insolvency, receivership or
         similar law now or hereafter in effect or (ii) the appointment of a
         receiver, collateral agent, custodian, sequestrator, conservator or
         similar official for the Debtor or any Subsidiary or for a substantial
         part of its assets, and, in any such case, such proceeding or petition
         shall continue undismissed for 45 days or an order or decree approving
         or ordering any of the foregoing shall be entered; or

                  (c) any other marshalling of assets of the Debtor or any of
         its Subsidiaries.

         "Insolvency Proceeding" shall have the meaning given to such term in
Section 5.1(f) hereof.

         "Lenders" shall have the meaning set forth in the recitals to this
Agreement.

         "Letter of Credit" shall have the meaning given to such term in Section
1.1 of the Bank Agreement as in effect on the date hereof.

         "Loans" shall mean the Revolving Credit Loans and the Seasonal
Revolving Credit Loans.

         "Majority Holders" shall mean, as of any date, subject to the following
sentence, the Beneficiary or Beneficiaries holding more than 66 2/3% of the
aggregate unpaid principal amount of the Secured Debt. For purposes of
determining Majority Holders, all of the Lenders shall be deemed to have taken
or be bound by any action approved by Bank Agent and all of the Purchasers shall
be deemed to have taken or be bound by any action approved by ACFS Agent.

         "Mandatory Holders" shall mean, as of any date, Bank Agent, ACFS Agent,
and Travelers.

                                       8
<PAGE>

         "Maximum Advances" shall mean, as of any date of determination, the
lesser of (a) the Total Commitment then available to Debtor or (b) the sum of
(i) the outstanding amount of all extensions of credit made by the Lenders
pursuant to any Borrowing Notice (without waiver or amendment) delivered by the
Debtor pursuant to the Bank Agreement, as in effect on the date hereof, plus
(ii) $5,000,000.

         "Money Order Agreement" shall have the meaning set forth in the
recitals to this Agreement.

         "Money Orders" shall mean money orders provided to Debtor pursuant to
the Money Order Agreement.

         "Money Transfer Agreement" shall have the meaning given to such term in
the recitals to this Agreement.

         "Obligations" shall mean and include, collectively, the Bank
Obligations, the ACFS Obligations, the Travelers Obligations, and all other
obligations secured by any Security Document.

         "Payment Blockage Notice" shall mean a written notice from Bank Agent
to ACFS Agent (with a copy to Travelers) stating that (i) a Bank Payment Default
has occurred and is continuing and, as a result thereof, the Debtor and its
Subsidiaries shall not be permitted to make, and ACFS Agent and the Purchasers
shall not be permitted to accept or receive, payments on the ACFS Obligations as
set forth in Section 6.1(a), (ii) a Bank Financial Covenant Default has occurred
and is continuing and, as a result thereof, the Debtor and its Subsidiaries
shall not be permitted to make, and ACFS Agent and the Purchasers shall not be
permitted to accept or receive, Excess Cash Flow Prepayments as set forth in
Section 6.1(b) hereof, or (iii) that an ACFS Financial Covenant Default has
occurred and is continuing, and, as a result thereof, Debtor and its
Subsidiaries shall not be permitted to make, and ACFS Agent and the Purchasers
shall not be permitted to accept or receive, any ACFS Principal Payments until
the date specified in Section 6.1(c) hereof.

         "Person" shall mean any individual, corporation, partnership, joint
venture, limited liability company, association, joint-stock company, trust,
unincorporated organization, Governmental Authority or other entity.

         "Proceeds" shall have the meaning ascribed to it in Section 9-306(a) of
the Uniform Commercial Code as in effect in the State of Texas and, whether or
not constituting proceeds under such section, shall include, but shall not be
limited to, (i) any and all proceeds of any insurance, indemnity, warranty or
guaranty payable to the Debtor from time to time with respect to any of the
Collateral, (ii) any and all payments (in any form whatsoever) made or due and
payable to the Debtor from time to time in connection with any requisition,
confiscation, condemnation, seizure or forfeiture of all or any part of the
Collateral by any Governmental Authority, and (iii) any and all other amounts
from time to time paid or payable to the Debtor upon the sale, exchange,
collection or other disposition of any part of the Collateral.

                                       9
<PAGE>

         "Responsible Officer" shall mean, with respect to any Person (other
than individuals and Governmental Authorities), the chief executive officer, the
president, the chief financial officer or the chief accounting officer of such
Person.

         "Revolving Credit Loans" shall have the meaning set forth in Section
1.01 of the Bank Agreement as in effect on the date hereof, and shall include
the revolving credit loans to be made by Lenders to Debtor pursuant to Section
2.01 of the Bank Agreement as in effect on the date hereof.

         "Seasonal Revolving Credit Loans" shall have the meaning set forth in
Section 1.01 of the Bank Agreement as in effect on the date hereof, and shall
include the seasonal revolving credit loans to be made by the Lenders to Debtor
pursuant to Section 2.01 of the Bank Agreement as in effect on the date hereof.

         "Secured Debt" shall mean, as of any date, the Obligations then
outstanding. In no event, unless the Mandatory Holders give their prior written
consent, shall Secured Debt include the unadvanced amount of any commitment
(other than the undrawn face amount of letters of credit).

         "Security Agreement" and "Security Agreements" shall have the meanings
set forth in the recitals to this Agreement.

         "Security Documents" shall mean each Security Agreement, each Stock
Pledge Agreement, the Guaranties, any additional documents executed to reflect
the grant to any Beneficiary of a lien upon or security interest in any
Collateral, and any agreement or document referred to in Section 4.4 hereof as
the same may be amended, supplemented or otherwise modified from time to time in
accordance with their respective terms but shall not include any of the
Travelers Agreements.

         "Standstill Period" shall mean any period commencing on the earlier of:

         (i) the day Bank Agent delivers an Enforcement Notice to the ACFS Agent
and Travelers,

         (ii) the day Bank Agent delivers to ACFS Agent a Payment Blockage
Notice (with a copy to Travelers) other than a Payment Blockage Notice described
in clause (ii) of such definition,

         (iii) the day ACFS Agent delivers an Enforcement Notice to the Bank
Agent and Travelers, or

         (iv) the day Travelers delivers an Enforcement Notice to the Bank Agent
and the ACFS Agent,

and ending on the earliest of (w) the date on which such Enforcement Notice or
Payment Blockage Notice, as applicable, is withdrawn by the party which
delivered such notice, (x) the close of business on the day which is 45 days
after the date the Standstill Period commenced, (y) the day on which the Bank
Obligations are indefeasibly paid in full, in cash or other

                                       10
<PAGE>

consideration acceptable to Bank Agent in its sole discretion or (z) the
occurrence of an Insolvency Event. Each Standstill Period shall be determined in
accordance with the preceding sentence and shall not terminate any earlier
notwithstanding that the amount of outstanding Bank Obligations (less the amount
of any Letters of Credit issued and Advances made by the Lenders to the Debtor
in excess of the Maximum Advances determined as of the date of each such Advance
or issuance of Letter of Credit) may, at any time during any Standstill Period,
be less than the ACFS Principal Balance. If a Standstill Period commences and
later terminates prior to the expiration of the 45-day period thereof because an
Enforcement Notice or Payment Blockage Notice has been withdrawn by the party
which delivered such notice, additional Standstill Period(s) can be commenced in
the manner, for the period, and subject to the limitations set forth in this
paragraph if a new Enforcement Notice shall be delivered; provided, if a
Standstill Period has commenced as a result of the delivery of an Enforcement
Notice or Payment Blockage Notice by Bank Agent, from the day of delivery
thereof until 365 days thereafter, the total number of days comprising the
Standstill Period(s) during such 365-day period shall be 45 days.

         "Stock Pledge Agreement" shall mean each stock pledge agreement or
similar security document executed by Debtor or any of its Subsidiaries (other
than ACE Funding) for the benefit of any Beneficiary, each of which is
identified on Schedule 1 to this Agreement.

         "Subsidiary" shall mean, when used with reference to any Person, any
corporation, association or other business entity in which such Person owns
directly or indirectly a majority of the outstanding voting securities or owns
sufficient equity or voting interests to enable it, in the absence of
contingencies, to elect a majority of the directors of such entity or, if such
entity is a partnership or a joint venture, such Person has more than a 50%
interest in the profits or capital thereof. Unless the context otherwise clearly
requires, any reference to a "Subsidiary" is a reference to a Subsidiary of the
Debtor.

         "Total Commitment" shall mean, as of any date of determination, the sum
of the Lenders' Total Revolving Credit Commitments and Total Seasonal Revolving
Credit Commitments, as the same may be increased up to, but not in excess of,
the aggregate amount of $175,000,000 as set forth in Section 2.15 of the Bank
Agreement as in effect on the date hereof.

         "Total Revolving Credit Commitments" shall have the meaning given to
such term in Section 1.1 of the Bank Agreement as in effect on the date hereof.

         "Total Seasonal Revolving Credit Commitments" shall have the meaning
given to such term in Section 1.1 of the Bank Agreement as in effect on the date
hereof.

         "Travelers" shall mean Travelers Express Company, Inc., a Minnesota
corporation.

         "Travelers Agreements" shall have the meaning given to such term in the
recitals to this Agreement.

         "Travelers Event of Default" shall mean the occurrence of an event or
condition (after giving effect to any applicable notice and cure provisions)
that permits Travelers to terminate the Money Order Agreement under Section 18.b
thereof because of default by Debtor thereunder.

                                       11
<PAGE>

         "Travelers Obligations" shall mean, (A) with respect to the following
items for which payment has not been actually received by Travelers or its
assignee and for which the Debtor is liable pursuant to the Money Order
Agreement, the sum of (i) the face amount of all Money Orders either (x) sold by
the Debtor pursuant to the Money Order Agreement or (y) lost, stolen or
misappropriated by or from the Debtor, and paid by Travelers or its assignee,
plus (ii) the per item fee (as adjusted pursuant to the Money Order Agreement)
for each such Money Order, and (B) any and all other payment obligations of
Debtor to Travelers under the Money Order Agreement, and (C) all "Sales
Proceeds", as defined in the Money Transfer Agreement, for which payment has not
been actually received by Travelers or its assignee and for which the Debtor is
liable pursuant to the Money Transfer Agreement, and (D) any and all other
payment obligations of the Debtor to Travelers under the Money Transfer
Agreement, and (E) any and all payment obligations of the Debtor to Travelers
under the Bill Payment Agreement, and (F) all interest accruing after the filing
of any petition in bankruptcy, or the commencement of any insolvency,
reorganization, or like proceeding relating to the Debtor or any of its
Subsidiaries, whether or not a claim for post-filing or post-petition interest
is allowed in such proceeding.

         (b) The words "hereof," "herein" and "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement and section references are to
this Agreement unless otherwise specified.

         (c) All terms defined in this Agreement in the singular shall have
comparable meanings when used in the plural, and vice versa, unless otherwise
specified.

         (d) Terms describing items or types of collateral not otherwise defined
herein which are defined in or used in Article 9 of the Uniform Commercial Code
as in effect in the State of Texas shall herein have the respective meanings
given to them in such Article 9.

                                    SECTION 2

              STANDSTILL PERIODS AND ENFORCEMENT ACTIONS; REMEDIES

         Section 2.1 Standstill Periods and Enforcement Actions.

                  (a) The Beneficiaries hereby agree to refrain from commencing
         any Enforcement Action except as set forth below in this Section 2.1.

                  (b) Each Beneficiary agrees that it will not take any
         Enforcement Action unless and until it first delivers to the other
         Beneficiaries an Enforcement Notice. The Beneficiaries hereby agree
         that (i) the delivery of any Enforcement Notice will commence a
         Standstill Period hereunder, and (ii) the delivery by Bank Agent to
         ACFS Agent of a Payment Blockage Notice (other than a Payment Blockage
         Notice described in clause (ii) of such definition) will commence a
         Standstill Period hereunder.

                  (c) During any Standstill Period, except as specifically
         provided otherwise in Section 2.1(e) below, no Beneficiary other than
         Bank Agent may commence any Enforcement Action without the prior
         written consent of Majority Holders; provided, however, that if Bank
         Agent or any Lender accelerates all or any portion of the Bank

                                       12
<PAGE>

         Obligations concurrently with the commencement of, or during the
         continuation of, any Standstill Period, then, in such event, each of
         the other Beneficiaries may, during any such Standstill Period,
         accelerate all or any portion of their respective Obligations to the
         extent and in the manner permitted by their respective Beneficiary
         Agreements, but such other Beneficiaries may not take any other
         Enforcement Action during such Standstill Period except as provided in
         Section 2.1(e) below.

                  (d) During any Standstill Period, at all times that the
         principal amount of outstanding Bank Obligations (less the amount of
         any Letters of Credit issued and Advances made by the Lenders to the
         Debtor in excess of the Maximum Advances determined as of the date of
         each such Advance or issuance of Letter of Credit) is greater than or
         equal to the ACFS Principal Balance, the Bank Agent may commence (or
         refrain from commencing) such action with respect to the Collateral and
         the Security Documents (including but not limited to Enforcement
         Actions) as it may deem necessary or appropriate without the consent of
         any other Beneficiary.

                  (e) Notwithstanding anything to the contrary contained in
         Section 2.1(d), ACFS Agent shall have the right to commence Enforcement
         Actions during any Standstill Period at any time that the principal
         amount of the outstanding Bank Obligations (less the amount of any
         Letters of Credit issued and Advances made by the Lenders to the Debtor
         in excess of the Maximum Advances determined as of the date of each
         such Advance or issuance of Letter of Credit) is less than the ACFS
         Principal Balance; provided, however, that in no event shall the ACFS
         Agent be permitted to, and the ACFS Agent shall not, cause the
         cessation of any Enforcement Action that was commenced by the Bank
         Agent during any Standstill Period unless the ACFS Agent is authorized
         in writing by the Majority Holders to do so.

                  (f) After the expiration of any Standstill Period, each
         Beneficiary may take any Enforcement Action permitted under its
         respective Beneficiary Agreements and the Security Documents benefiting
         such Beneficiary, subject, in each case, to Sections 3.1, 5.1(f), 5.2
         and 6.4(d) hereof, and, in such event, such party or parties may not
         thereafter commence any Enforcement Action unless a new Enforcement
         Notice is delivered to the other Beneficiaries in accordance with
         Section 2.1(b) above.

         Section 2.2. Withdrawal of Enforcement Notice. The party or parties (or
successors in interest thereto) delivering an Enforcement Notice shall be
entitled to withdraw it by delivering written notice of withdrawal to each
Beneficiary to which the related Enforcement Notice was originally delivered.

         Section 2.3. Exercise of Powers. All of the powers, remedies and rights
of the Beneficiaries as set forth in this Agreement may be exercised by the
Beneficiaries in respect of any Security Document as though set forth at length
therein and all the powers, remedies and rights of the Beneficiaries as set
forth in any Security Document may be exercised from time to time as herein and
therein provided.

         Section 2.4. Limitation on Duties in Respect of Collateral. Beyond the
accounting to the Debtor and the Beneficiaries for moneys received by it
hereunder, no Beneficiary shall have

                                       13
<PAGE>

any duty to the Debtor or the other Beneficiaries as to any Collateral in its
possession or control or in the possession or control of any agent or nominee of
it or any income thereon or as to the preservation of rights against prior
parties or any other rights pertaining thereto. To the extent, however, that any
Beneficiary or an agent or nominee of any Beneficiary maintains possession or
control of any of the Collateral or the Security Documents at any office of the
Debtor, such Beneficiary shall, or shall instruct such agent or nominee to,
grant the Debtor the access to such Collateral or Security Documents which the
Debtor requires for the conduct of its business, as permitted by the Bank
Agreement, the ACFS Note Agreement, and the Travelers Agreements, so long as no
Standstill Period or Insolvency Proceeding shall have been commenced or
continuing.

         Section 2.5. Limitation by Law. All the provisions of this Section 2
are intended to be subject to all applicable mandatory provisions of law which
may be controlling in the premises and to be limited to the extent necessary so
that they will not render this Agreement invalid or unenforceable in whole or in
part.

         Section 2.6. Absolute Rights of the Beneficiaries. Notwithstanding any
other provision of this Agreement or any provision of any Security Document, but
subject in all cases to the rights and obligations of the Beneficiaries under
Section 2.1 hereof, nothing contained in this Agreement shall affect or impair
the right, if any, that any Beneficiary may have under the terms and conditions
governing the Obligations owing to it under the Beneficiary Agreements to which
it is a party to accelerate and demand repayment of such Obligations. Each
Beneficiary retains the right to exercise freely its rights and remedies as a
general creditor of the Debtor or any Subsidiary in accordance with applicable
law and subject to the terms of the Beneficiary Agreements, including without
limitation the right to file a lawsuit and obtain a judgment in connection
therewith against the Debtor or any Subsidiary, and to otherwise exercise any
other right it may have (other than the right to commence Enforcement Actions,
which shall in all circumstances prior to an Insolvency Event be exercisable
only as provided in this Agreement and the Security Documents). Any Beneficiary
may (but in no event shall be required to) take action permitted by applicable
law or in accordance with the terms of the Security Documents to preserve its
rights, security interests and liens in any item of Collateral securing the
payment and performance of the obligations under the Beneficiary Agreements to
which it is a party, including but not limited to curing any default or alleged
default under any contract entered into by the Debtor or any Subsidiary paying
any tax, fee or expense on behalf of the Debtor or any Subsidiary exercising any
offset or recoupment rights and paying insurance premiums on behalf of the
Debtor or any Subsidiary so long as such action shall not impair the rights of
any Beneficiary.

                                    SECTION 3

                              APPLICATION OF MONEYS

         Section 3.1. Application of Proceeds. The net proceeds of any
Collateral received by the Beneficiaries as a result of taking any Enforcement
Action (whether such Enforcement Action is taken before, during, or after a
Standstill Period, an Insolvency Event, or the acceleration of all or any part
of the Obligations), all amounts received by any Beneficiary in contravention of
Section 6.1 or 6.2, all amounts received by any Beneficiary after an
acceleration of any Bank Obligations or any ACFS Obligations, and all payments
or distributions of any kind

                                       14
<PAGE>

or character (whether in cash, securities or other property) paid or payable to
the Beneficiaries in any Insolvency Proceeding, shall be applied by the
Beneficiaries in the following order:

                  FIRST: To Bank Agent in an amount equal to the Bank
         Obligations (less the amount of any Letters of Credit issued and
         Advances made by the Lenders to the Debtor in excess of the Maximum
         Advances determined as of the date of each such Advance or issuance of
         Letter of Credit);

                  SECOND: To ACFS Agent in an amount equal to the ACFS
         Obligations (less the amount of any loans made by ACFS Agent or the
         Purchasers after the date hereof to the Debtor in excess of the
         Additional Permitted Term Loans);

                  THIRD: To Travelers in an amount equal to the Travelers
         Obligations;

                  FOURTH: To the Bank Agent in an amount equal to the amount of
         any Letters of Credit issued and Advances, if any, made by the Lenders
         to the Debtor in excess of the Maximum Advances determined as of the
         date of each such Advance or issuance of Letter of Credit;

                  FIFTH: To ACFS Agent in an amount equal to the amount, if any,
         of any loans made by ACFS Agent or the Purchasers after the date hereof
         to the Debtor in excess of the Additional Permitted Term Loans;

                  SIXTH: Any surplus then remaining shall be paid to the Debtor
         or its successors or assigns, or to whomever may be lawfully entitled
         to receive the same, or as a court of competent jurisdiction may
         direct.

Notwithstanding the foregoing provisions of this Section 3.1, in connection with
an Insolvency Proceeding each of ACFS Agent and Travelers shall be permitted to
accept and retain all Permitted Junior Securities received by such Person
pursuant to Section 5.1(f).

                                    SECTION 4

                                   [RESERVED]

                                    SECTION 5

       AGREEMENTS AMONG BENEFICIARIES IN RESPECT OF SUBORDINATION OF LIENS
                       AND IN RESPECT OF INSOLVENCY EVENTS

         Section 5.1. Subordination of Liens, etc.

         (a) Notwithstanding the date, manner or order of perfection or
recording of any security interests or liens granted to the Bank Agent, the
Lenders, the ACFS Agent, the Purchasers, or Travelers by the Debtor or any of
its Subsidiaries which secure all or any part of the Obligations, and
notwithstanding any provisions of the Uniform Commercial Code, of any applicable
law or decision, or of the Security Documents, or whether any Beneficiary holds
possession of all or any part of the Collateral, each party hereto agrees that
the Bank Agent, for

                                       15
<PAGE>

the benefit of itself, the Lenders, and any Affiliate of a Lender party to any
Hedging Contract with the Debtor, shall have a first and prior security interest
and lien in and upon the Collateral.

         (b) Without limitation of anything contained in Section 5.1(a) hereof,
(i) the ACFS Agent, on behalf of itself and each Purchaser, hereby agrees that
all security interests or liens at any time securing the ACFS Obligations
(whether granted under a Security Document or otherwise) are hereby made, and
will at all times prior to the termination of this Agreement be, subject,
subordinate, junior and inferior in all respects to all security interests and
liens securing the Bank Obligations (whether granted under a Security Document
or otherwise), and (ii) Travelers hereby agrees that all security interests or
liens at any time securing the Travelers Obligations (whether granted under a
Security Document or otherwise) are hereby made, and will at all times prior to
the termination of this Agreement be, subject, subordinate, junior and inferior
in all respects to all security interests and liens securing the Bank
Obligations (whether granted under a Security Document or otherwise), and the
ACFS Obligations (whether granted under a Security Document or otherwise).

         (c) Each Beneficiary agrees that it will not challenge the legality,
validity, enforceability or priority of the security interests or liens granted
to any other Beneficiary pursuant to this Agreement or the Security Documents.
The subordination provided for in this Section 5.1 is solely for the benefit of
the Beneficiaries. No Person other than a Beneficiary shall have or be entitled
to assert any rights or benefits under or as a result of this Section 5.1.

         (d) Each Beneficiary agrees that with respect to the perfection of the
security interests and liens which secure the Obligations (whether granted
hereunder, under a Security Document, or otherwise) it shall not file any
financing statements in any jurisdiction without the prior written consent of
the Majority Holders; provided, however, that each Beneficiary hereby consents
to the filing by Bank Agent from time to time of one or more financing
statements and amendments thereto which sufficiently indicate the Collateral so
long as each such original financing statement names each of Bank Agent, ACFS
Agent, and Travelers as a secured party.

         (e) Each Beneficiary, without the written consent of the Mandatory
Holders, agrees that it will not (i) except for the Security Documents, take or
receive a security interest in or lien upon any of the property or assets of the
Debtor or its Subsidiaries as security for the payment of any indebtedness owed
to it under any Beneficiary Agreement to which it is a party, (ii) except for
the Guaranties and the Security Documents, retain or obtain the primary or
secondary obligations of any other obligor or obligors with respect to all or
any part of the indebtedness owed to it under any of the Beneficiary Agreements
to which it is a party, or (iii) contest the validity or enforceability of or
seek to avoid, have declared fraudulent or have set aside any Obligations owing
to any other Beneficiary.

         (f) (i) In the event of any insolvency, bankruptcy, liquidation,
reorganization or other similar proceedings, or any receivership proceedings in
connection therewith, relative to the Debtor or its Subsidiaries following the
occurrence of an Insolvency Event (an "Insolvency Proceeding"), any payment or
distribution of any kind or character, whether in cash, property, stock or
obligations, which may be payable or deliverable in respect of the ACFS
Obligations, and the Travelers Obligations shall be paid or delivered directly
to the Bank Agent for application in payment of the Bank Obligations as set
forth in Section 3.1, unless and until all of

                                       16
<PAGE>

the Bank Obligations shall have been paid indefeasibly paid in full in cash;
provided, however, that no such delivery shall be made to Bank Agent of stock or
obligations which are issued pursuant to reorganization proceedings in respect
of the ACFS Obligations, or the Travelers Obligations if such obligations are
subordinate and junior (whether by law or agreement) at least to the extent
provided in this Agreement to the payment of all Bank Obligations then
outstanding and to the payment of any stock or obligations which are issued in
exchange or substitution for any Bank Obligations then outstanding ("Permitted
ACFS Junior Securities"). (ii) In the event of any Insolvency Proceeding, but
only after the Bank Obligations shall have been paid indefeasibly paid in full,
any payment or distribution of any kind or character, whether in cash, property,
stock or obligations, which may be payable or deliverable in respect of the
Travelers Obligations shall be paid or delivered directly to the ACFS Agent for
application in payment of the ACFS Obligations as set forth in Section 3.1,
unless and until all of the ACFS Obligations shall have been paid in full in
cash; provided, however, that no such delivery shall be made to ACFS Agent of
stock or obligations which are issued pursuant to reorganization proceedings in
respect of the Travelers Obligations if such obligations are subordinate and
junior (whether by law or agreement) at least to the extent provided in this
Agreement to the payment of all ACFS Obligations then outstanding and to the
payment of any stock or obligations which are issued in exchange or substitution
for any ACFS Obligations then outstanding. (iii) In the event of any Insolvency
Proceeding, but only after the Bank Obligations and the ACFS Obligations shall
have been paid indefeasibly paid in full, any payment or distribution of any
kind or character, whether in cash, property, stock or obligations, which may be
payable or deliverable in respect of the Bank Obligations or the ACFS
Obligations shall be paid or delivered directly to Travelers for application in
payment of the Travelers Obligations as set forth in Section 3.1, unless and
until all of the Travelers Obligations shall have been paid in full in cash;
provided, however, that no such delivery shall be made to Travelers of stock or
obligations which are issued pursuant to reorganization proceedings in respect
of the Bank Obligations or the ACFS Obligations if such obligations are
subordinate and junior (whether by law or agreement) at least to the extent
provided in this Agreement to the payment of all Travelers Obligations then
outstanding and to the payment of any stock or obligations which are issued in
exchange or substitution for any Travelers Obligations then outstanding
("Permitted Travelers Junior Securities"; Permitted ACFS Junior Securities and
Permitted Travelers Junior Securities are collectively referred to herein as
"Permitted Junior Securities").

         (g) Travelers hereby releases and terminates all liens and security
interests granted to it by the Debtor or any of its Subsidiaries (including but
not limited to all liens and security interests granted to Travelers under the
Travelers Agreements) other than those granted to Travelers under the Travelers
Security Agreement and any other Security Document benefiting Travelers.

         Section 5.2. Insolvency Events. Each Beneficiary stipulates and agrees
that before, from and after the occurrence, and during the continuance, of any
Insolvency Event, each of the Bank Agent (on behalf of itself and the Lenders),
the Lenders, ACFS Agent (on behalf of itself and the Purchasers), the
Purchasers, and Travelers will be entitled to pursue their separate claims
against the Debtor and its Subsidiaries and to exercise any and all of its
respective rights and remedies independently of one another and as separate and
distinct secured creditors of the Debtor and its Subsidiaries; provided, however
that the pursuit of such claims and the exercise of such remedies shall at all
times prior to an Insolvency Event be subject to the terms and

                                       17
<PAGE>

conditions of Section 2.1 of this Agreement. Without limitation of the
foregoing, each Beneficiary also stipulates and agrees that all Insolvency
Proceedings, including but not limited to all hearings conducted under Section
1129(b) of the Bankruptcy Code, all cases under the Bankruptcy Code in which the
Debtor or any of its Subsidiaries is a debtor, and all other aspects of any
reorganization of the Debtor and/or its Subsidiaries under the Bankruptcy Code
(including but not limited to classification, voting, impairment, and cramdown),
shall be conducted by the Beneficiaries and the Debtor and/or its Subsidiaries
in a manner that reflects the fact that the Beneficiaries do not comprise a
single group of creditors of the Debtor and its Subsidiaries but rather comprise
multiple and independent groups of creditors of the Debtor and its Subsidiaries.

         Section 5.3. Continuity of Agreements. The agreements set forth in
Section 5.1 shall continue in full force and effect after the occurrence of any
Insolvency Event in respect of Debtor or any of its Subsidiaries and in, during,
and after any Insolvency Proceeding (all references herein to Debtor and its
Subsidiaries shall be deemed to apply to such Person as debtor-in-possession and
to a collateral agent for any such person).

                                    SECTION 6

        AGREEMENTS AMONG BENEFICIARIES AND DEBTOR IN RESPECT OF PAYMENTS
                     ON THE OBLIGATIONS AND OTHER AGREEMENTS

         Section 6.1. Payment Blockages, etc. Subject to Sections 3.1 and 5.1(f)
above and Sections 6.1(a), 6.1(b), 6.1(c), and 6.2 below, Debtor and its
Subsidiaries may make and pay, and ACFS Agent and the Purchasers may accept and
receive, any and all payments on the ACFS Obligations when due and payable in
accordance with the terms of the ACFS Note Agreement, the ACFS Notes, the ACFS
Security Agreement and the other Security Documents executed by the Debtor and
its Subsidiaries (other than ACE Funding) for the benefit of ACFS Agent or any
Purchaser, in each case as in effect on the date hereof.

         (a) After Bank Agent delivers to ACFS Agent a Payment Blockage Notice
(with a copy to Travelers) in respect of a Bank Payment Default, then, until
such Bank Payment Default shall have been remedied by payment in full or waived,
(i) ACFS Agent, on behalf of itself and the Purchasers, hereby agrees that
neither it nor any Purchaser shall accept or receive any direct or indirect
payment of or on account of the ACFS Obligations and (ii) Debtor, on behalf of
itself and its Subsidiaries other than ACE Funding, agrees that neither Debtor
nor any such Subsidiary shall make any direct or indirect payment of or on
account of the ACFS Obligations.

         (b) After Bank Agent delivers to ACFS Agent a Payment Blockage Notice
(with a copy to Travelers) in respect of a Bank Financial Covenant Default,
then, until such Bank Financial Covenant Default shall have been remedied or
waived, (i) ACFS Agent, on behalf of itself and the Purchasers, hereby agrees
that neither it nor any Purchaser shall accept or receive any Excess Cash Flow
Prepayments, either directly or indirectly and (ii) Debtor, on behalf of itself
and its Subsidiaries other than ACE Funding, agrees that neither Debtor nor any
such Subsidiary shall make any Excess Cash Flow Prepayments.

         (c) After Bank Agent delivers to ACFS Agent a Payment Blockage Notice
(with a copy to Travelers) in respect of an ACFS Financial Covenant Default,
then, until, until the earlier

                                       18
<PAGE>

of (1) the day on which such ACFS Financial Covenant Default shall have been
remedied or waived or (2) the 45th day after delivery of such Payment Blockage
Notice by Bank Agent, (i) ACFS Agent, on behalf of itself and the Purchasers,
hereby agrees that neither it nor any Purchaser shall accept or receive any ACFS
Principal Payment and (ii) Debtor, on behalf of itself and its Subsidiaries
other than ACE Funding, agrees that neither Debtor nor any such Subsidiary shall
make any ACFS Principal Payment; provided, however, that Bank Agent shall not be
permitted to deliver to ACFS Agent a Payment Blockage Notice in respect of an
ACFS Financial Covenant Default more than one time in any 365 day period.

         Section 6.2. Acceleration, etc. Notwithstanding anything to the
contrary contained herein, after (i) the acceleration of the Bank Obligations or
the ACFS Obligations or (ii) an Insolvency Event, each of ACFS Agent, on behalf
of itself and the Purchasers, and Travelers hereby agrees that that it shall not
accept or receive any direct or indirect payment of or on account of the ACFS
Obligations or the Travelers Obligations (other than Permitted Junior
Securities), as applicable, unless and until the Bank Obligations have been
indefeasibly paid in full in cash and Debtor, on behalf of itself and its
Subsidiaries other than ACE Funding, agrees that neither Debtor nor any such
Subsidiary shall make any such payments (it being the intention of the parties
that all such payments to which ACFS Agent, any Purchaser, or Travelers would be
entitled to receive shall be applied to the Obligations as set forth in Section
3.1).

         Section 6.3. Subrogation. Upon indefeasible payment in full of the Bank
Obligations in cash, ACFS Agent and the Purchasers shall be subrogated to the
rights of Bank Agent and the Lenders to receive payments or distributions of
assets of the Debtor and its Subsidiaries made on the Bank Obligations until the
ACFS Obligations shall be paid in full. Upon indefeasible payment in full of the
Bank Obligations, and the ACFS Obligations in cash, Travelers shall be
subrogated to the rights of Bank Agent, the Lenders, ACFS Agent, and the
Purchasers to receive payments or distributions of assets of the Debtor and its
Subsidiaries made on the Bank Obligations and, the ACFS Obligations until the
Travelers Obligations shall be paid in full.

         Section 6.4. Miscellaneous Agreements Among Beneficiaries.

         (a) Each Beneficiary agrees that it has, independently and without
reliance on any other Beneficiary, and based upon such documents and information
as it has deemed appropriate, made its own credit analysis of the Debtor and its
Subsidiaries and the Collateral, and its independent decision to enter into this
Agreement and the Security Documents, and that it will, independently and
without reliance upon any other Beneficiary, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
analysis and decisions in taking or not taking action under this Agreement and
the Security Documents.

         (b) Each Beneficiary acknowledges and agrees that it has not made any
representation or warranty to any other Beneficiary with respect to the
execution, validity, legality, completeness of this Agreement, any Security
Documents or the Collateral or with respect to the collectibility or
enforceability of the Obligations.

         (c) Each Beneficiary hereby assumes responsibility for keeping itself
informed of (i) the financial condition of the Debtor and its Subsidiaries and
(ii) all other circumstances bearing upon the risk of nonpayment of the Secured
Debt. Each of the Beneficiaries hereby agrees that

                                       19
<PAGE>

no other Beneficiary shall have a duty to advise any of the others of
information known to it regarding such condition or any such circumstances. In
the event any Beneficiary, in its sole discretion, undertakes at any time or
from time to time to provide any such information to any other Beneficiary, it
shall be under no obligation (x) to provide any such information to such other
Beneficiary on any subsequent occasion, (y) to undertake any investigation, or
(z) to disclose any information which such Beneficiary wishes to maintain
confidential.

         (d) Each Beneficiary agrees that should it at any time when it is not
entitled to do so hereunder (including, without limitation, under Section 6.1 or
6.2) either (i) obtain, receive or take any payment on the Obligations owed to
it, (ii) receive any Collateral, proceeds thereof, or any other property of
Debtor, or (iii) recover any amounts under any Security Document, any Guaranty,
or any other document or agreement providing security for or guaranteeing the
payment of any Obligations, then the entire amount of such payment, all of such
Collateral or other property received, and all such amounts recovered shall be
held in trust and applied to the payment of the Obligations as set forth in
Section 3.1.

         (e) Each party hereto represents that in entering into this Agreement
and related documents, it is not relying on any commitment or agreement made by
any other Beneficiary to make or extend credit to Debtor.

         Section 6.5. Cap on ACFS Obligations. ACFS Agent, on behalf of itself
and each Purchaser, agrees that the maximum amount of the ACFS Obligations
(excluding interest, fees, penalties, and all other amounts other than
principal) shall not, without the prior written consent of the Mandatory
Holders, which may be exercised in their sole and absolute discretion, exceed a
principal amount equal to $40,000,000 plus any portion of the Additional
Permitted Term Loans made by ACFS Agent and/or the other Purchasers.

         Section 6.6. Assignment. None of the Beneficiaries shall assign any
interest in the Obligations or the Secured Debt unless such assignment is
subject to all terms and conditions of this Agreement.

         Section 6.7. Invalidation of Payments. To the extent that any of the
Beneficiaries receive payments on the Secured Debt or receive Proceeds of
Collateral which are subsequently invalidated, declared to be fraudulent or
preferential, or are required to be repaid to a collateral agent, receiver or
any other Person under the Bankruptcy Code or under state, federal or common
law, then, to the extent the payments or Proceeds are so repaid, the Secured
Debt or part thereof which was intended to be satisfied shall be revived and
will continue to be in full force and effect as if those payments or Proceeds
had never been received by the Beneficiary.

         Section 6.8. Possessory Collateral. After the indefeasible payment in
full in cash of the Bank Obligations, Bank Agent agrees to deliver all
Collateral that may be in its possession to the ACFS Agent, and the Debtor
hereby consents to such delivery. After the indefeasible payment in full in cash
of the ACFS Obligations, ACFS Agent agrees to deliver all Collateral that may be
in its possession to Travelers, and the Debtor hereby consents to such delivery.
After the indefeasible payment in full in cash of the Travelers Obligations,
Travelers agrees to deliver all Collateral that may be in its possession to the
Debtor.

                                       20
<PAGE>

                                    SECTION 7

                                  MISCELLANEOUS

         Section 7.1. Amendments, Supplements and Waivers. This Agreement may
not be amended, revised, restated or supplemented without the prior written
consent of the Mandatory Holders.

         Section 7.2. Notices. All notices, requests, demands and other
communications provided for or permitted hereunder shall be in writing
(including telex and telecopy communications), shall be sent by mail, telex,
telecopier or hand delivery and, except as otherwise provided in this Agreement,
the cost thereof shall be for the sole account of the Debtor and shall be added
to the Obligations:

         (a) If to the Debtor, to Ace Cash Express, Inc., 1231 Greenway Drive,
Suite 800, Irving, Texas 75038, Attention: Chief Financial Officer, or at such
other address as shall be designated by it in a written notice to the
Beneficiaries, with a copy thereof to Gardere Wynne Sewell, L.L.P., 3000
Thanksgiving Tower, Dallas, Texas 75201 Attention: Richard A. Tulli; provided,
however, that the failure to provide a copy of such communications to Gardere
Wynne Sewell, L.L.P. shall not affect the validity or effectiveness of such
communications.

         (b) If to Bank Agent, to Wells Fargo Bank Texas, National Association,
4975 Preston Park Road., Suite 280, Plano, Texas 75093, Attention: Michael B.
Sullivan or at such other address as shall be designated by it in a written
notice to the Beneficiaries, with a copy thereof to Winstead, Sechrest & Minick
P.C., 1201 Elm Street, Suite 5400, Dallas, Texas 75270, Attention: James R.
Littlejohn; provided, however, that the failure to provide a copy of such
communications to Winstead, Sechrest & Minick P.C. shall not affect the validity
or effectiveness of such communications.

         (c) If to ACFS Agent, to American Capital Financial Services, Inc., 2
Bethesda Metro Center, 14th Floor, Bethesda, Maryland 20814, Attention:
Compliance Officer and to American Capital Financial Strategies, Ltd., 2200 Ross
Avenue, Suite 4500 West, Dallas, Texas 75204 Attention: Jeffrey N. MacDowell, or
at such other address as shall be designated by it in a written notice to the
Beneficiaries, with a copy thereof to Patton Boggs L.L.P., 2001 Ross Avenue,
Dallas, Texas 75201 Attention: Robert J. Cole; provided, however, that the
failure to provide a copy of such communications to Patton Boggs L.L.P. shall
not affect the validity or effectiveness of such communications.

         (d) If to Travelers, to Travelers Express Company, Inc., 1550 Utica
Avenue South, Minneapolis, Minnesota 55416, Attention: Chief Legal Counsel, or
at such other address as shall be designated by it in a written notice to the
Beneficiaries.

         All such notices, requests, demands and communications shall, to be
effective hereunder, be in writing or by a telecommunications device capable of
creating a written record, and shall be deemed to have been given or made when
delivered by hand or five (5) days after its deposit in the mail, first class or
air postage prepaid, or in the case of notice by such a telecommunications
device, when properly transmitted if on the same day the sender sends a
confirming copy of such notice by a recognized overnight delivery service
(charges prepaid).

                                       21
<PAGE>

         Section 7.3. Headings. Section, subsection and other headings used in
this Agreement are for convenience only and shall not affect the construction of
this Agreement.

         Section 7.4. Severability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall not invalidate the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

         Section 7.5. [RESERVED]

         Section 7.6. Binding Effect. This Agreement shall be binding upon and
inure to the benefit of each of the parties hereto and shall inure to the
benefit of the Beneficiaries and their respective successors and assigns, and
nothing herein or in any Security Document is intended or shall be construed to
give any other Person any right, remedy or claim under, to or in respect of this
Agreement, any Security Document, or the Collateral.

         Section 7.7. Conflict with Other Agreements. The parties agree that in
the event of any conflict between the provisions of this Agreement and the
provisions of any of the Security Documents, the Collateral Agency Agreement, or
any Guaranty, the provisions of this Agreement shall control.

         Section 7.8. Governing Law. This Agreement shall be governed by and
construed in accordance with the internal laws (as opposed to conflicts of law
provisions) and decisions of the State of Texas.

         Section 7.9. Counterparts. This Agreement may be executed in separate
counterparts, each of which shall be an original and all of which taken together
shall constitute one and the same instrument.

         Section 7.10. Waiver of Jury Trial, Etc.

         (a) EACH PARTY HERETO HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS AGREEMENT OR ANY OF
THE OTHER BENEFICIARY AGREEMENTS OR IN ANY WAY CONNECTED WITH OR RELATED OR
INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR
ANY OF THE OTHER BENEFICIARY AGREEMENTS OR THE TRANSACTIONS RELATED HERETO OR
THERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN
CONTRACT, TORT, EQUITY OR OTHERWISE. EACH PARTY HERETO MAY FILE AN ORIGINAL
COUNTERPART OF A COPY OF THIS AGREEMENT AS WRITTEN EVIDENCE OF THE CONSENT OF
THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

         (b) EACH PARTY HERETO (I) CERTIFIES THAT NEITHER ANY REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND

                                       22
<PAGE>

(II) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY,
AMONG OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS HEREIN.

         Section 7.11. Submission to Jurisdiction.

         (a) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY
BE BROUGHT IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF
TEXAS, DALLAS DIVISION, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE
DEBTOR AND EACH BENEFICIARY HEREBY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE
AFORESAID COURT.

         (b) THE DEBTOR AND EACH BENEFICIARY HEREBY IRREVOCABLY WAIVES, IN
CONNECTION WITH ANY SUCH ACTION OR PROCEEDING, ANY OBJECTION, INCLUDING, WITHOUT
LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF
FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY
SUCH ACTION OR PROCEEDING IN SUCH JURISDICTION.

         (c) THE DEBTOR AND EACH BENEFICIARY HEREBY IRREVOCABLY CONSENTS TO THE
SERVICE OF PROCESS OF THE AFOREMENTIONED COURT IN ANY SUCH ACTION OR PROCEEDING
BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE
PREPAID, TO IT, AT ITS ADDRESS SET FORTH IN SECTION 7.2 HEREOF.

         (d) NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY HOLDER OF ANY OF THE
OBLIGATIONS TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE
LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE DEBTOR IN ANY OTHER
JURISDICTION.

                                       23
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement or
caused this Agreement to be duly executed by their respective officers thereunto
duly authorized as of the day and year first above written.

                                 ACE CASH EXPRESS, INC., as Debtor

                                 By:
                                    -------------------------------------------

                                 Name:
                                      -----------------------------------------

                                 Title:
                                       ----------------------------------------

                                 WELLS FARGO BANK TEXAS, NATIONAL
                                 ASSOCIATION, as Bank Agent

                                 By:
                                    -------------------------------------------

                                 Name:
                                      -----------------------------------------

                                 Title:
                                       ----------------------------------------

                                 AMERICAN CAPITAL FINANCIAL SERVICES,
                                 INC., as ACFS Agent

                                 By:
                                    -------------------------------------------

                                 Name:
                                      -----------------------------------------

                                 Title:
                                       ----------------------------------------

                                 TRAVELERS EXPRESS COMPANY, INC.

                                 By:
                                    -------------------------------------------

                                 Name:
                                      -----------------------------------------

                                 Title:
                                       ----------------------------------------

<PAGE>

         Agreed to and acknowledged as of the date first above written:

                                      Check Express, Inc.
                                      Q. C. & G. Financial, Inc.
                                      Public Currency, Inc.
                                      Check Express Florida, Inc.
                                      Check Express Finance, Inc.
                                      Check-X-Change Corporation
                                      Check Express South Carolina, Inc.
                                      Check Express USA, Inc.

                                      By:
                                         --------------------------------------
                                         Name:
                                         Title:

                                       2

<PAGE>

Schedule 1

                     Guaranties and Stock Pledge Agreements

Unconditional Guaranty Agreement by Check Express, Inc., Q. C. & G. Financial,
Inc., Public Currency, Inc., Check Express Florida, Inc., Check Express Finance,
Inc., Check-X-Change Corporation, Check Express South Carolina, Inc., Check
Express USA, Inc. of even date herewith in favor of Bank Agent

Assignment of Deposit Accounts and Security Agreement by Debtor of even date
herewith in favor of Bank Agent

Assignment of Deposit Accounts and Security Agreement by Check Express, Inc., Q.
C. & G. Financial, Inc., Public Currency, Inc., Check Express Florida, Inc.,
Check Express Finance, Inc., Check-X-Change Corporation, Check Express South
Carolina, Inc., Check Express USA, Inc. in favor of Bank Agent

Stock Pledge Agreement by Debtor of even date herewith in favor of Bank Agent

Stock Pledge Agreement by Check Express, Inc. of even date herewith in favor of
Bank Agent

Unconditional Guaranty Agreement by Check Express, Inc., Q. C. & G. Financial,
Inc., Public Currency, Inc., Check Express Florida, Inc., Check Express Finance,
Inc., Check-X-Change Corporation, Check Express South Carolina, Inc., Check
Express USA, Inc. of even date herewith in favor of ACFS Agent

Assignment of Deposit Accounts and Security Agreement by Debtor of even date
herewith in favor of ACFS Agent

Assignment of Deposit Accounts and Security Agreement by Check Express, Inc., Q.
C. & G. Financial, Inc., Public Currency, Inc., Check Express Florida, Inc.,
Check Express Finance, Inc., Check-X-Change Corporation, Check Express South
Carolina, Inc., Check Express USA, Inc. in favor of ACFS Agent

Stock Pledge Agreement by Debtor of even date herewith in favor of ACFS Agent

Stock Pledge Agreement by Check Express, Inc. of even date herewith in favor of
ACFS Agent

Unconditional Guaranty Agreement by Check Express, Inc., Q. C. & G. Financial,
Inc., Public Currency, Inc., Check Express Florida, Inc., Check Express Finance,
Inc., Check-X-Change Corporation, Check Express South Carolina, Inc., Check
Express USA, Inc. of even date herewith in favor of Travelers

Assignment of Deposit Accounts and Security Agreement by Debtor of even date
herewith in favor of Travelers

Assignment of Deposit Accounts and Security Agreement by Check Express, Inc., Q.
C. & G. Financial, Inc., Public Currency, Inc., Check Express Florida, Inc.,
Check Express Finance, Inc., Check-X-Change Corporation, Check Express South
Carolina, Inc., Check Express USA, Inc. in favor of Travelers

Stock Pledge Agreement by Debtor of even date herewith in favor of Travelers

Stock Pledge Agreement by Check Express, Inc. of even date herewith in favor of
Travelers

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