Document:

exv10w1

 

Exhibit 10.1

AMENDMENT NUMBER ONE TO

MONEY ORDER AGREEMENT

This Amendment amends the Money Order Agreement dated April 16, 1998 between
Ace Cash Express, Inc. (“Ace”) and Travelers Express Company, Inc. (“Company”).

Section 4.A.a is amended so as to provide in its entirety as follows:

“Ace is not authorized to use Money Orders to pay its own obligations or to
obtain any benefit for itself or for any affiliate, except as expressly
authorized in this Section 4A. The Money Orders that Ace is authorized to so
use in this Section 4A are “Self-Use Money Orders.” If Ace wishes to make any
other use of Money Orders not expressly permitted by this Agreement, Ace shall
request such use in writing and such use shall be subject to Company’s written
consent, which shall not be unreasonably withheld or delayed. Notwithstanding
any other provision of this Agreement, Ace may issue Self-Use Money Orders in
amounts up to and including one thousand dollars ($1,000.00) per item.”

Except as specifically amended herein, the Agreement remains in effect.

	 	 	 
	Ace Cash Express, Inc.	 	
Travelers Express Company, Inc.
	 	 	 
	By: /s/ James A. Caulk

	 	
By: /s/ Eugene J. Schott

	 	 	 
	 	 	 
	Name: James A. Caulk

	 	
Name: Eugene J. Schott

	 	 	 
	 	 	 
	Title: V.P. Operations Support

	 	
Title: Vice President

	 	 	 
	 	 	 
	Date: 2/3/99

	 	
Date: 2/18/99exv10w2

 

Exhibit 10.2

AMENDMENT No. 2

TO

MONEY ORDER AGREEMENT

	 	 	 
	DATE:	 	
October 29, 2003
	 	 	 
	PARTIES:	 	
Travelers Express Company, Inc.

(“Company”)
	 	 	 
	 	 	
and
	 	 	 
	 	 	
Ace Cash Express, Inc.

(“Ace”)
	 	 	 
	RECITALS:	 	 

	 	A.
	 	Company and Ace are parties to that certain Money Order
Agreement dated April 16, 1998, including all Exhibits thereto and
amendments (the “Agreement”).

	 	
	 	 

	 	B.
	 	The Parties now wish to amend the Agreement.

AGREEMENT:

     In consideration of the following terms and conditions, the receipt of
which is acknowledged, the Parties agree to amend the Agreement as follows:

	 	 	 
	I.	 	
Section 1 — Purpose and Effectiveness. Effective as of the date of this
Amendment, Section 1.b. shall be amended by deleting the second, third,
fourth and fifth sentences.
	 	 	 
	II.	 	
Section 2 — Appointment and Relationship.
	 	 	 
	 	 	
Section 2.a. Effective as of January 1, 2004, Section 2.a. shall be
amended by amending and restating the last sentence to read in its
entirety as follows:
	 	 	 
	 	 	
In this Agreement, “location” refers to any retail location operated by
Ace and any of Ace’s self-service machines that sell and dispense money
orders. A “location” does not include, and this Agreement does not
relate to, any location or operation of any franchisee of Ace or any
franchisee of any of Ace’s subsidiaries.
	 	 	 
	 	 	
Section 2.b. Effective as of the date of this Amendment, Section 2.b.
shall be amended by adding an additional sentence at the end thereof,
which shall read in its entirety as follows:
	 	 	 
	 	 	
In this Agreement, “Ace Financing-related Documents” shall mean the Bank
Agreement, the ACFS Note Agreement, and the Money Transfer Agreement, all
as defined in the Intercreditor Agreement dated as of March 31, 2003,
among Ace, Company, and other entities named therein (the “Intercreditor
Agreement”), and the Intercreditor Agreement.
	 	 	 
	III.	 	
Section 4 — Sales. Effective as of the date of this Amendment, the third
sentence of Section 4 shall be amended and restated to read in its
entirety as follows:
	 	 	 
	 	 	
Ace will not issue a Money Order for more than $1,000 (or such greater
amount as may be allowed and established in writing by Company).

 

 

	 	 	 
	IV.	 	
Section 10 — Remittances and Reports. Effective as of January 1, 2004,
Section 10.a. shall be amended by replacing the first fax number in the
fourth sentence with “(972) 582-1464” and by adding an additional
sentence at the end thereof, which shall read in its entirety as follows:
	 	 	 
	 	 	
Notwithstanding anything to the contrary contained in this Section 10.a.,
Ace shall be entitled to, on up to five nonconsecutive occasions per
calendar year, remit the Sales Proceeds (excluding Self-use Fees) due on
any January 1 through March 31, by 5:00 p.m. on the first day that is not
a bank holiday after such due date, and that day shall be the new “due
date” for remittance of those Sale Proceeds. Accordingly, Ace shall not
be in default under the Agreement, and no interest will accrue in
accordance with Section 12.a, because of that delay.
	 	 	 
	V.	 	
Section 13 — Locations and Delivery. Effective as of the date of this
Amendment, Section 13 shall be amended by amending and restating the
second sentence to read in its entirety as follows:
	 	 	 
	 	 	
Ace agrees to keep Company informed of the locations where Ace sells
Money Orders.
	 	 	 
	VI.	 	
Section 18 — Term and Termination.
	 	 	 
	 	 	
Section 18.a. Effective as of the date of this Amendment, Section
18.a. shall be amended and restated to read in its entirety as
follows:
	 	 	 
	 	 	
The initial term of this Agreement expires or ends at 11:59:59 p.m.,
central time, on December 31, 2003. At 12:00:00 a.m., central time, on
January 1, 2004, the second term shall commence (without lapse or
interruption). The second term shall expire or end at 11:59:59 p.m.,
central time, on December 31, 2007. Thereafter, this Agreement shall
continue in effect until terminated by either Party as provided in the
next sentence. Either Party may terminate this Agreement as of the end
of the second term or at any time as of the end of a calendar month
thereafter by giving the other Party written notice at least six (6)
months prior to the termination date. The foregoing shall be subject to
the right of either Party to terminate this Agreement in accordance with
Section 18.b.
	 	 	 
	 	 	
Section 18.b. Effective as of January 1, 2004, Section 18.b. shall be
amended by amending and restating subsections (vii) and (viii) to read in
their entirety as follows:

	 	 	 	 
	 	(vii)	 	
[Intentionally omitted]
	 	 	 	 
	 	(viii)	 	
Either Party may terminate this Agreement immediately upon notice
if the other Party breaches any of its obligations under the Ace
Financing-related Documents, after giving effect to any applicable
notice and cure period provided in the respective Ace
Financing-related Documents; or

	 	 	 
	VII.	 	
Section 22 — Notices. Effective as of the
date of this Amendment, Section 22 shall be
amended by replacing the address for any
notices, requests, and other communications
to Ace to the following:
	 	 	 
	 	 	
Ace Cash Express, Inc.

Attention: Chief Financial Officer

1231 Greenway Drive, Suite 600

Irving, Texas 75038

Facsimile: (972) 582-1464
	 	 	 
	 	 	
Copy to: General Counsel

Facsimile: (972) 582-1426
	 	 	 
	 	 	
Copy to: Richard A. Tulli

Gardere Wynne Sewell LLP

1601 Elm Street, Suite 3000

Dallas, Texas 75201-4761

Facsimile: (214) 999-3676

2

 

	 	 	 
	VIII.	 	
Section 25 — Miscellaneous. Effective as of the date of this Amendment,
Section 25 shall be amended by replacing the first sentence with two
sentences that read in their entirety as follows:
	 	 	 
	 	 	
This Agreement, together with its Exhibits, is the entire agreement
between the Parties relating to the subject matter of this Agreement.
This Agreement does not supersede or amend or modify any of the Ace
Financing-related Documents.
	 	 	 
	IX.	 	
Exhibit A — Paragraph 1 — Fees and Payment.
	 	 	 
	 	 	
Paragraph 1.a. — Per Item Fee. Effective as of January 1, 2004, paragraph
1.a. of Exhibit A shall be redesignated “Per Item Fee or Rebate” and
amended and restated to read in its entirety as follows:
	 	 	 
	 	 	
As specified below in this paragraph 1.a., Ace shall pay Company a per
item fee (a “Fee”), or Company shall pay Ace a per item rebate (a
“Rebate”), for each Money Order sold other than any Self-use Money
Orders. The Fee or Rebate to be applied shall be established for an
entire calendar quarter, based upon the average volume per month of Money
Orders (other than Self-use Money Orders) sold at all locations for the
immediately preceding calendar quarter, according to the schedule set
forth below:

	 	 	 
	Previous quarter's average	 	Fee (Rebate) per item in current quarter
	
	 	

	volume per month	 	 
	
	 	 
	*	 	
*

	 	 	 
	 	 	
For example, if the first calendar quarter’s average volume per month is
* , the second calendar quarter’s Fee will be * per item, regardless
of the volume for the second calendar quarter. If the second calendar
quarter’s average volume per month is * , the third quarter’s Rebate
will be * . There will be no retroactive adjustment for any quarter.
The Fee or Rebate for the first quarter of the second term will be
determined based on the average volume per month during the fourth
calendar quarter of 2003 (October through December).
	 	 	 
	 	 	
If (i) Company exercises its rights under Section 4 of the Agreement to
limit the number or dollar amount of Money Orders that Ace may sell, or
to suspend Ace’s right to sell Money Orders (a “Limitation Request”),
(ii) the Limitation Request extends for a period longer than ten (10)
days during any calendar quarter, and (iii) the effect of the Limitation
Request is to reduce the number of Money Orders that Ace sells during a
calendar quarter in which the Limitation Request is effective (in whole
or in part), such that the Fee payable by Ace would be increased, or the
Rebate payable by Company would be decreased, then the Fee or Rebate
payable for the next calendar quarter shall be determined in accordance
with the schedule set forth above in this paragraph 1.a, except that Ace
shall in no event be required to pay a Fee of greater than * per item.
	 	 	 
	 	 	
Within ten (10) days after the end of each calendar month, Company will
submit an activity report to Ace, delineating, inter alia, whether a Fee
or Rebate is due. If Fees are payable, Company shall submit to Ace an
invoice for the amount of Fees, due within ten (10) days of the receipt
of the invoice and if Rebates are payable Company shall make payment
concurrently with the activity report.
	 	 	 
	X.	 	
Exhibit A — Paragraph 4 — Pricing and
Remittance Matrix.
	 	 	 
	 	 	
Effective as of January 1, 2004, paragraph 4 of Exhibit A shall be
deleted in its entirety.

	*
	 	Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

3

 

	 	 	 
	XI.	 	
Exhibit A — Paragraph 5 — Repricing.
	 	 	 
	 	 	
Effective as of the date of this Amendment, paragraph 5 of Exhibit A
shall be deleted in its entirety.
	 	 	 
	XII.	 	
Exhibit A — Paragraph 6 — Signing Bonuses.
	 	 	 
	 	 	
Effective as of the date of this Amendment, paragraph 6 of Exhibit A
shall be redesignated “Signing Bonus” and amended and restated to read in
its entirety as follows:
	 	 	 
	 	 	
Company will pay Ace a Money Order Signing Bonus (the “Signing Bonus”) of
$1,997,333. $200,000 of the Signing Bonus will be paid immediately upon
Ace’s signature of Amendment No. 2 to this Agreement, and the remaining
$1,797,333 of the Signing Bonus will be paid on the first banking day
after January 1, 2004. Each payment will be made by fed wire to an
account designated by Ace. If this Agreement is terminated before its
scheduled expiration date (December 31, 2007) wrongfully by Ace, or by
Company as permitted by Section 18.b. for default by Ace, or by Ace as
permitted by Sections 18.b(vi) and 18A, then Ace will refund to Company
the pro rata portion of the Signing Bonus received under this Section 6.
The “pro-rata portion” will be the number of full weeks remaining after
the termination date until the scheduled expiration date of this
Agreement multiplied by one-two hundred eighth (1/208) of the Signing
Bonus.
	 	 	 
	 	 	
Example: The termination date of this Agreement is in the middle of week
10 of the second year of the second term of this Agreement. The
“pro-rata portion” equals $1,997,333 x 146 (the number of full weeks
remaining in the term of the Agreement) x 1/208 = $1,401,974.13
	 	 	 
	XIII.	 	
Exhibit A — Paragraph 7 — Annual Incentive Bonuses.
	 	 	 
	 	 	
Effective as of January 1, 2004, paragraph 7 of Exhibit A shall be
amended and restated to read in its entirety as follows:
	 	 	 
	 	 	
Company will pay Ace an Annual Incentive Bonus (the “Incentive Bonus”) of
$350,000, by fed wire to an account designated by Ace, on the first
banking day after January 1, 2004, and on the first banking day after
each subsequent January 1 during the term of this Agreement. If this
Agreement is terminated before its scheduled expiration date (December
31, 2007) wrongfully by Ace, or by Company as permitted by Section 18.b.
for default by Ace, or by Ace as permitted by Sections 18.b(vi) and 18A,
then Ace will refund to Company the pro rata portion of the Incentive
Bonus received under this Section 7. The “pro-rata portion” will be the
number of full weeks in the calendar year remaining after the termination
date multiplied by one-fifty second (1/52) of the Incentive Bonus.
	 	 	 
	 	 	
Example: The termination of this Agreement is in the middle of week 10
of the first year of the second term of this Agreement. The “pro-rata
portion” equals $350,000 x 42 (the number of full weeks remaining in the
calendar year) x 1/52 = $282,692.31.
	 	 	 
	XIV.	 	
Exhibit A — Paragraph 8 — Non-effectiveness.
	 	 	 
	 	 	
Effective as of the date of this Amendment, paragraph 8 of Exhibit A shall be deleted in its entirety.
	 	 	 
	XV.	 	
Exhibit B — Paragraph 3 — Information Excluded.
	 	 	 
	 	 	
Effective as of the date of this Amendment, paragraph 3 of Exhibit B
shall be amended by adding the following as a new subparagraph d:
	 	 	 
	 	 	
d. Any information (including a portion of an otherwise confidential
document) with respect to the “tax treatment” and “tax structure” (in
each case, within the meaning of Section 1.6011-4 of U.S. Department of
Treasury Regulations) of the transactions described in this Agreement and
all materials of any kind (including opinions or other tax analyses) that
are or have been provided to either Party relating to that tax treatment
and tax structure.

4

 

	 	 	 
	XVI.	 	
Interpretation of Amendment.
	 	 	 
	 	 	
In the event of any conflict between the Agreement and this Amendment,
the terms of this Amendment shall control. Except as expressly amended,
supplemented or modified by this Amendment, the Agreement as heretofore
in effect shall continue in full force and effect. All capitalized terms
contained in this Amendment, unless specifically defined herein, shall
have the respective meanings ascribed to them in the Agreement. The
provisions of Section 24 of the Agreement shall also apply to this
Amendment.
	 	 	 
	XVII.	 	
Binding Effect. This Amendment shall bind and inure to the benefit of
the Parties and their respective successors and assigns, permitted by
Paragraph 23 of the Agreement.

                                     IN WITNESS WHEREOF, the Parties have executed this Amendment to be
effective as of the “Date” first set forth above.

	 	 	 	 	 	 	 
	
ACE CASH EXPRESS, INC
	 	TRAVELERS EXPRESS COMPANY, INC
	 	 	 	 	 	 	 
	By	 	
/s/ Michael J. Briskey
	 	By
	 	/s/ Anthony P. Ryan
	 	 	

	 	 	 	

	 	 	 	 	 	 	 
	Print Name:	 	
Michael Briskey
	 	Print Name:
	 	Anthony P. Ryan
	 	 	

	 	 	 	

	 	 	 	 	 	 	 
	Title:	 	
VP Finance
	 	Title:
	 	VP/GM
	 	 	

	 	 	 	

	 	 	 	 	 	 	 
	Date:	 	
10/27/03
	 	Date:
	 	10/29/03
	 	 	

	 	 	 	

5

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