Document:

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                                                                    EXHIBIT 10.3

                                                                  EXECUTION COPY

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                          LOAN AND SERVICING AGREEMENT
                          Dated as of December 18, 2002

                                      Among

                                 ACE FUNDING LLC
                                   as Borrower

                             ACE CASH EXPRESS, INC.
                 in its individual capacity and as Check-Casher

                          AUTOBAHN FUNDING COMPANY LLC
                                    as Lender

                 DZ BANK AG DEUTSCHE ZENTRAL-GENOSSENSCHAFTSBANK
                                FRANKFURT AM MAIN
                 as Administrative Agent and as Liquidity Agent

                                       and

                         U.S. BANK NATIONAL ASSOCIATION
                               as Collateral Agent

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                                TABLE OF CONTENTS

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<Caption>

                                                                                                               PAGE
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ARTICLE I             LOANS......................................................................................1

         SECTION 1.01               Commitments to Lend; Limits on Lender's Obligations..........................1
         SECTION 1.02               Borrowing Procedures.........................................................2
         SECTION 1.03               Security Interest............................................................2
         SECTION 1.04               Use of Proceeds; Provision of Cash...........................................2

ARTICLE II            NOTE.......................................................................................4

         SECTION 2.01               Note.........................................................................4
         SECTION 2.02               Interest on Loans............................................................4
         SECTION 2.03               General Procedures...........................................................4
         SECTION 2.04               Commitment Fee...............................................................5
         SECTION 2.05               Transfer and Exchange of Notes...............................................5
         SECTION 2.06               Optional Redemption..........................................................5

ARTICLE III           SETTLEMENTS................................................................................5

         SECTION 3.01               Accounts; Investments........................................................5
         SECTION 3.02               Collection of Moneys.........................................................7
         SECTION 3.03               Settlement...................................................................7
         SECTION 3.04               Payments and Computations, Etc..............................................11

ARTICLE IV            YIELD PROTECTION..........................................................................12

         SECTION 4.01               Yield Protection............................................................12
         SECTION 4.02               Funding Losses..............................................................13
         SECTION 4.03               Taxes.......................................................................13

ARTICLE V             CONDITIONS OF BORROWINGS..................................................................15

         SECTION 5.01               Conditions Precedent to Initial Borrowing...................................15
         SECTION 5.02               Conditions Precedent to All Borrowings......................................17

ARTICLE VI            REPRESENTATIONS AND WARRANTIES............................................................18

         SECTION 6.01               Representations and Warranties of Borrower..................................18
         SECTION 6.02               Representations and Warranties of the Check-Casher and ACE..................21

ARTICLE VII           GENERAL COVENANTS OF THE BORROWER AND THE CHECK-CASHER....................................23

         SECTION 7.01               Affirmative Covenants of Borrower...........................................23
         SECTION 7.02               Reporting Requirements of Borrower..........................................24
         SECTION 7.03               Negative Covenants of Borrower..............................................25
         SECTION 7.04               Covenants of the Check-Casher and ACE.......................................26
         SECTION 7.05               Separate Existence..........................................................29

ARTICLE VIII          ADMINISTRATION AND COLLECTION.............................................................31

         SECTION 8.01               Check-Casher to Act.........................................................31
         SECTION 8.02               Insurance...................................................................33
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         SECTION 8.03               Reporting...................................................................33
         SECTION 8.04               Books and Records...........................................................34
         SECTION 8.05               Check-Casher Representations................................................34
         SECTION 8.06               Costs of Servicing; Check-Casher's Fee......................................34
         SECTION 8.07               Successor Check-Casher; Liquidation.........................................34
         SECTION 8.08               Bailee for Collateral Agent.................................................35

ARTICLE IX            EVENTS OF DEFAULT; TERMINATION EVENTS.....................................................35

         SECTION 9.01               Events of Default...........................................................35
         SECTION 9.02               Remedies....................................................................37

ARTICLE X             THE ADMINISTRATIVE AGENT; COLLATERAL AGENT................................................38

         SECTION 10.01              Authorization and Action....................................................38
         SECTION 10.02              Administrative Agent's and Collateral Agent's Reliance, Etc.................38
         SECTION 10.03              The Liquidity Agent, the Collateral Agent, the Administrative Agent and
                                    Affiliates..................................................................39
         SECTION 10.04              Appointment and Powers of Collateral Agent..................................39
         SECTION 10.05              Collateral Agent and Employees of the Collateral Agent......................40
         SECTION 10.06              Successor Collateral Agent..................................................41

ARTICLE XI            ASSIGNMENT OF LENDER'S INTEREST...........................................................42

         SECTION 11.01              Restrictions on Assignments.................................................42
         SECTION 11.02              Rights of Assignee..........................................................42
         SECTION 11.03              Evidence of Assignment......................................................42

ARTICLE XII           INDEMNIFICATION...........................................................................43

         SECTION 12.01              Indemnities by Borrower.....................................................43
         SECTION 12.02              Indemnities by Check-Casher.................................................45
         SECTION 12.03              Indemnities by ACE..........................................................46

ARTICLE XIII          MISCELLANEOUS.............................................................................47

         SECTION 13.01              Amendments, Etc.............................................................47
         SECTION 13.02              Notices, Etc................................................................48
         SECTION 13.03              No Waiver; Remedies.........................................................48
         SECTION 13.04              Binding Effect; Survival....................................................48
         SECTION 13.05              Costs, Expenses and Taxes...................................................48
         SECTION 13.06              No Proceedings..............................................................49
         SECTION 13.07              Confidentiality.............................................................49
         SECTION 13.08              Captions and Cross References...............................................50
         SECTION 13.09              Integration.................................................................50
         SECTION 13.10              Governing Law...............................................................51
         SECTION 13.11              Waiver of Jury Trial........................................................51
         SECTION 13.12              Consent to Jurisdiction; Waiver of Immunities...............................51
         SECTION 13.13              Execution in Counterparts; Severability.....................................51
         SECTION 13.14              No Recourse Against Certain Parties.........................................52
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                                   APPENDICES

APPENDIX A                 Definitions

                                      iii

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                                    SCHEDULES

SCHEDULE I                 Vault Collection Accounts

SCHEDULE II                SSMs and Locations

SCHEDULE III               Excluded SSMs and Locations

SCHEDULE IV                Insurance Schedule

SCHEDULE V                 Check Cashing Fees

                                    EXHIBITS

EXHIBIT 1.02               Form of Borrowing Notice

EXHIBIT 2.01               Form of Note

EXHIBIT 5.01(n)            Form of SSM Acknowledgment

EXHIBIT 5.01(p)            Form of Agent Bank Acknowledgment

EXHIBIT 5.01(q)            Form of Approved Tax Provider Acknowledgment

EXHIBIT 5.01(u)            Form of Company Note

EXHIBIT 5.01(v)            Form of Electronic Presentment Agreement

EXHIBIT 5.01(w)            Form of Account Control Agreement

EXHIBIT 5.01(x)            Form of Intercreditor Agreement

EXHIBIT 8.03(i)            Form of Borrowing Base Report

EXHIBIT 8.03(ii)           Form of Servicing Report

                                     ANNEXES

ANNEX I                    Form of Approved Courier Agreement

ANNEX II                   Form of Approved Vault Bank Agreement

ANNEX III                  Check-Casher's Credit and Collection Policy

ANNEX IV                   Form of Approved Cashier's Check

ANNEX V                    Form of Approved RAL Agreement

ANNEX VI                   Collateral Agent Fee Letter

<PAGE>

                          LOAN AND SERVICING AGREEMENT

                          Dated as of December 18, 2002

         THIS IS A LOAN AND SERVICING AGREEMENT, among ACE FUNDING LLC, a
Delaware limited liability company (the "Borrower"), ACE CASH EXPRESS, INC., a
Texas corporation, individually ("ACE") and as Check-Casher (in such capacity,
the "Check-Casher"), AUTOBAHN FUNDING COMPANY LLC, a Delaware limited liability
company (the "Lender"), DZ BANK AG DEUTSCHE ZENTRAL-GENOSSENSCHAFTSBANK
FRANKFURT AM MAIN ("DZ Bank"), as administrative agent for Lender (in such
capacity, the "Administrative Agent") and as liquidity agent for Liquidity
Providers (in such capacity, the "Liquidity Agent"), and U.S. BANK NATIONAL
ASSOCIATION, as collateral agent for the Secured Parties (in such capacity, the
"Collateral Agent"). Unless otherwise indicated, capitalized terms used in this
Agreement are defined in Appendix A.

                                   Background

         1. Borrower intends to borrow Loans from the Lender and has requested
Lender and Lender has agreed, subject to the terms and conditions contained in
this Agreement, to make such Loans to Borrower from time to time during the term
of this Agreement. The Loans will be secured by a security interest in all of
the assets of Borrower.

         2. The Check-Casher has agreed to undertake certain obligations in
connection with the cashing of tax refund loan checks as set forth herein and
the Borrower has agreed to provide cash inventory to the Check-Casher in
exchange for the Cash Inventory Provision Fee.

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein contained, the parties hereto agree as follows:

                                    ARTICLE I

                                      LOANS

         SECTION 1.01 Commitments to Lend; Limits on Lender's Obligations. Upon
the terms and subject to Article V and the other conditions of this Agreement,
from time to time during each Usage Period and prior to the Termination Date,
the Borrower may request that Lender make loans to the Borrower on a revolving
basis secured by a Lien on all of the assets of Borrower (each, a "Loan") and
Lender shall make such Loans; provided that no Loan shall be made by Lender if,
after giving effect thereto, the sum of (1) the outstanding Face Amount of all
Commercial Paper Notes issued by Lender with respect to the Transaction
Documents less the aggregate amount of all interest or discount accrued on or
scheduled to accrue on such Commercial Paper Notes and (2) the aggregate
principal amount of all Loans funded other than through the issuance of
Commercial Paper Notes (such sum, the "Facility Amount") would exceed an amount
equal to the lesser of (a) $190,000,000, as such amount may be increased from
time to time with the consent of the Administrative Agent (which consent shall
be in the Administrative Agent's sole and absolute discretion) following the
written request of the

<PAGE>

Borrower and payment by the Borrower of the Increase Fee (the "Maximum Facility
Amount") and (b) the product of the Maximum Advance Percentage and the Net
Balance (the "Capital Limit").

         SECTION 1.02 Borrowing Procedures.

                  (a) Notice of Borrowing. Each Borrowing by Borrower shall be
         made on a Business Day on notice in writing from Borrower to the
         Administrative Agent (with a copy to the Collateral Agent) received by
         the Administrative Agent not later than 11:00 a.m. (New York City time)
         on the Business Day preceding the date of such proposed Borrowing. Each
         such notice of a proposed Borrowing shall be substantially in the form
         of Exhibit 1.02 (each, a "Borrowing Notice") and shall specify the
         amount of such Borrowing and the date on which such Borrowing is to be
         made. Each Borrowing made pursuant to this Section 1.02 shall have an
         initial principal amount of at least $1,000,000 and shall be in
         integral multiples of $1,000, unless otherwise approved by the
         Administrative Agent. Any Borrowing Request given by Borrower pursuant
         to this Section 1.02 shall be irrevocable and binding on Borrower.

                  (b) Funding of Borrowing. On each Borrowing Date, upon
         satisfaction of the applicable conditions set forth in Article V,
         Lender shall deposit in same day funds by wire transfer to the Trust
         Collection Account an amount equal to the requested Borrowing. After
         acknowledgement of receipt by the Borrower of such funds, the
         Collateral Agent will transfer such funds into one or more Vault
         Collection Accounts specified by the Check-Casher by written
         instructions (with a copy to the Lender).

                  (c) Interest Periods. In the Borrowing Notice and prior to the
         end of each existing Interest Period for a Loan, the Borrower may
         request an Interest Period for the applicable Loan of up to 30 days
         subject to the Administrative Agent's approval; provided, however, that
         following a Termination Event, Event of Default, Check-Casher Event of
         Default or Termination Date, the Administrative Agent shall select the
         Interest Periods in its sole discretion.

         SECTION 1.03 Security Interest. The Borrower hereby grants to the
Collateral Agent, for the benefit of the Secured Parties, a first priority
continuing lien and security interest in all of the assets of the Borrower
(including, without limitation, all of the Assets, all of the Borrower's cash
and currency, accounts, chattel paper, instruments, general intangibles, deposit
accounts, inventory, investment property, equipment, rights under Sections 1.04
hereof and all other personal property of Borrower), whether now owned or
hereafter acquired, wherever located, and including proceeds of the foregoing
(collectively, the "Pledged Collateral"). For the avoidance of doubt, the above
grant shall include all amounts due and payable by any Person (including,
without limitation, Approved Vault Banks, Approved Banks and Approved Couriers)
to the Borrower. Such liens and security interests shall secure all of
Borrower's obligations hereunder, including, without limitation, the payments of
principal of, and interest on, the Note (and the Loans evidenced thereby) and
all Indemnified Amounts.

         SECTION 1.04 Use of Proceeds; Provision of Cash. The Borrower covenants
and agrees to use all proceeds of the Loans solely to provide Cash to the SSMs
for use by the Check-

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Casher in cashing Checks in the SSMs. The Check-Casher hereby covenants and
agrees that the Borrower shall be the sole and exclusive source of cash for the
SSMs, and until the Final Payout Date hereunder it will not permit cash from any
other cash provider to be placed in the SSMs. No self-service check machine
included as an SSM hereunder during any Usage Period shall be removed as an SSM
hereunder without the prior written consent of the Administrative Agent. Prior
to the initial Usage Period, Borrower will provide Administrative Agent a
Schedule of the SSMs for such Usage Period to be attached hereto as Schedule II
consisting of not less than 145 SSMs, indicating the locations thereof. Such
locations shall be deemed acceptable unless Administrative Agent objects to any
specific location within ten (10) Business Days of receipt of the proposed
Schedule of SSMs. SSMs will not be relocated during a Usage Period. If for any
reason Borrower cannot satisfy all the requirements of this Agreement as to a
particular SSM, Borrower shall have the right to seek an alternative source of
Cash for such SSM, provided the total number of SSM's subject hereto shall not
be less than 145 during such Usage Period. Prior to the commencement of any
subsequent Usage Period, Borrower will provide Administrative Agent a Schedule
of the SSMs for such Usage Period to be attached as a replacement Schedule II,
consisting of not less than 145 SSMs, indicating the locations thereof, with any
change in such Schedule from the prior Usage Period subject to approval by the
Administrative Agent. The Borrower covenants and agrees at all times to ensure
that Schedule III contains a complete and accurate listing of the Excluded SSMs
which will not be funded by the Borrower with Cash (any update to which shall be
delivered to the Administrative Agent). ACE is expressly authorized to seek
alternative sources of cash for the Excluded SSMs. The Check-Casher hereby
appoints the Borrower as its cash provider for all SSMs, and the Borrower hereby
accepts such appointment. At no time shall any funds from other cash providers
(which, for the avoidance of doubt, shall not include funds received in respect
of Checks) be placed in any SSM or the Trust Collection Account, any Vault
Collection Account, any account created pursuant to Section 3.01 or any other
account created in connection with this Agreement; provided, however, that for
so long as the Electronic Presentment Agreement is in effect, funds representing
checks cashed at the 10 Excluded SSMs funded by Texas Capital Bank, National
Association's vault cash (the "Texas Capital Funds") and subject to the
Electronic Presentment Agreement shall be permitted to be deposited into the
Trust Collection Account for a period not to exceed one Business Day from
deposit therein. The Collateral Agent shall wire to the account specified by
Texas Capital Bank, National Association on each Business Day the amount
specified by the Check-Casher as Texas Capital Funds in a notice to the
Collateral Agent (with a copy to the Administrative Agent). The Collateral Agent
will cease transferring such funds to Texas Capital Bank, National Association
upon receipt of notice from the Administrative Agent to such effect and, after
receipt of such notice, shall only so transfer funds upon the instruction of the
Administrative Agent. The Administrative Agent shall deliver a copy of any
notice of the type described in the preceding sentence to the Check-Casher
simultaneously with its delivery to the Collateral Agent. As compensation to the
Borrower for the provision of cash inventory hereunder, the Check-Casher shall
pay to the Borrower the Cash Inventory Provision Fee as provided herein.

         The Check-Casher hereby acknowledges and agrees that all right, title
and interest in and to any and all Cash provided by the Borrower for use in the
SSMs and all Checks are and shall remain the sole and separate property of the
Borrower and under no circumstances the property of the Check-Casher. The
Check-Casher expressly acknowledges (i) that the Cash supplied to the SSMs is
not, and is not intended to be, a loan from the Borrower to the Check-Casher and
(ii)

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all Checks cashed by the Check-Casher shall remain the sole and separate
property of the Borrower. The Check-Casher shall acquire no right, title or
interest in any Cash, Checks or the proceeds thereof wherever located,
including, without limitation, Checks or Cash (whether in the form of currency
or otherwise) in the possession of an Approved Courier, any other agent or
subcontractor of the Check-Casher or at an SSM, in the Vault Collection Account,
or in any other account created in connection with this Agreement or any other
Transaction Document.

                                   ARTICLE II

                                      NOTE

         SECTION 2.01 Note. The Loans shall be evidenced by a promissory note
(as from time to time supplemented, extended, amended or replaced, the "Note"),
substantially in the form set forth in Exhibit 2.01, with appropriate
insertions, dated the date hereof, payable to the order of the Lender in the
initial maximum principal amount of $190,000,000 on the Maturity Date. The
entire Facility Amount shall be due and payable on each Usage Period Maturity
Date. If the Maximum Facility Amount is increased pursuant to Section 1.01, the
Note shall be replaced by a promissory note, substantially in the form of the
existing Note, with appropriate changes to reflect an increased maximum
principal amount to reflect the increased Maximum Facility Amount. Upon receipt
of a replacement Note satisfactory to Lender, Lender shall cause the existing
Note to be returned to the Borrower. Principal of, and interest on, the Loans
shall be paid from time to time as set forth in Section 3.03. The Borrower shall
have the right to prepay all or any portion of the Loans in full at any time,
provided that the Borrower (i) notifies the Administrative Agent of such
intention to prepay the Loans in a notice delivered at least 5 Business Days
prior to the proposed date of repayment and (ii) otherwise complies with the
requirements of this Section 2.01. Any such prepayment under this Section 2.01
shall be accompanied by all accrued and unpaid interest on the Loans and all
other amounts then due hereunder (including all amounts due and payable under
Section 4.02). Upon any prepayment in full of the Loan in conjunction with the
termination of this Agreement prior to the Maturity Date, the Check-Casher
agrees to pay the Lender a prepayment fee (the "Prepayment Fee") in accordance
with the terms of the Fee Letter, provided that no Prepayment Fee shall be
payable in the event of an optional redemption pursuant to Section 2.06. The
Administrative Agent shall record in its records, or at its option on the
schedule attached to the Note, the date and amount of each Loan made hereunder,
the interest rate with respect thereto (as determined under Section 2.02), each
repayment thereof, and the other information provided for thereon. The aggregate
unpaid principal amount so recorded shall be rebuttable presumptive evidence of
the principal amount owing and unpaid on the Note. The failure so to record any
such information or any error in so recording any such information shall not,
however, limit or otherwise affect the actual obligations of the Borrower
hereunder or under the Note to repay the principal amount of all Loans, together
with all interest accruing thereon, as set forth in this Agreement.

         SECTION 2.02 Interest on Loans. Each Loan shall accrue interest during
each Interest Period at a rate equal to the Interest Rate, as in effect for such
Interest Period for such Loan, which interest shall be payable as set forth in
Section 3.03.

         SECTION 2.03 General Procedures. No outstanding principal balance of
the Loans shall be considered reduced by any allocation, set-aside or
distribution of any portion of

                                       4
<PAGE>

Collections or any other payment unless such Collections or other payment shall
have been actually delivered to the applicable Secured Party pursuant hereto. No
principal or interest or other amounts hereunder shall be considered paid by any
distribution of any portion of Collections or any other payment if at any time
such distribution or payment is rescinded or must otherwise be returned for any
reason. No provision of this Agreement shall require the payment or permit the
collection of interest in excess of the maximum permitted by Applicable Law.

         SECTION 2.04 Commitment Fee. In consideration of the Lender's
Commitment under this Agreement, the Borrower will pay an Annual Commitment Fee
to the Agent for the benefit of the Lender annually on the first day of each
Usage Period pursuant to the Fee Letter.

         SECTION 2.05 Transfer and Exchange of Notes. At the option of the
holder of a Note in connection with any permitted transfer or assignment of such
Note, Notes may be exchanged for other Notes in authorized denominations of a
like aggregate principal amount upon surrender of the Notes to be exchanged to
the Borrower. Upon surrender for the transfer or exchange of any Note, the
Borrower shall deliver, in the name of the designated transferee or transferees,
one or more new Notes in authorized denominations of a like aggregate principal
amount dated the date of issuance thereof. Every Note presented or surrendered
for registration of transfer or exchange shall be accompanied by a written
instrument of transfer duly executed by the holder of such Note or his attorney
duly authorized in writing. No service charge shall be made for any registration
of transfer or exchange of Notes.

         SECTION 2.06 Optional Redemption. On any Business Day after April 15th
during any Usage Period, the Borrower shall have the right, but not the
obligation, to repay the Facility Amount in whole, but not in part, on the
Optional Redemption Date, provided that immediately prior to such repayment the
Net Balance is less than 10% of the greatest Net Balance during such Usage
Period and in connection with such repayment the Borrower pays in full all other
obligations under the Transaction Documents due and payable or accrued through
such date (including any amounts described in Section 4.02). Following an
Optional Redemption Date, the Borrower will no longer be able to request
additional Borrowings during such Usage Period and the Lender's commitment to
make Loans shall be suspended until the commencement of the next following Usage
Period, if any.

                                   ARTICLE III

                                   SETTLEMENTS

         SECTION 3.01 Accounts; Investments.

                  (a) Accounts.

                  On or before the first Borrowing Date, the Borrower shall
establish the following accounts:

                  (i) the Trust Collection Account; and

                  (ii) the Reserve Account.

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<PAGE>

                  On or before the first Borrowing Date, there shall be
         established, in the name of the Collateral Agent or in the name of the
         Borrower, for the benefit of the Collateral Agent, a deposit account
         subject, in the case of any account in the name of the Borrower, to an
         Approved Vault Bank Agreement (each, a "Vault Collection Account") at
         each Approved Vault Bank (i) into which the Approved Vault Bank shall
         accept transfers of the proceeds of Loans and from which the applicable
         Approved Vault Bank shall distribute funds to the Trust Collection
         Account in accordance with instructions received by such Approved Vault
         Bank from the Collateral Agent (pursuant to instructions received from
         the Borrower (or its authorized agents, including the Check-Casher)) in
         accordance with the terms of the Transaction Documents and the
         applicable Approved Vault Bank Agreement, and (ii) into which the
         applicable Approved Vault Bank shall accept transfers of funds in
         respect of Collections and from which the applicable Approved Vault
         Bank shall distribute funds to an Approved Courier for delivery to
         specified SSMs in accordance with instructions received by such
         Approved Vault Bank from the Borrower (or its authorized agents,
         including the Check-Casher) in accordance with the terms of the
         Transaction Documents and the applicable Approved Vault Bank Agreement,
         until such time as the Collateral Agent instructs such Approved Vault
         Bank to cease such distribution of funds and to distribute funds then
         on deposit in the applicable Vault Collection Account only in
         accordance with further instructions from the Collateral Agent. The
         initial Vault Collection Accounts shall be as set forth on Schedule I.
         The parties hereto hereby authorize and direct the Collateral Agent to
         establish in the name of the Collateral Agent on behalf of the Secured
         Parties the Vault Collection Accounts listed on Schedule I and to
         execute and deliver the account agreements and all ancillary documents
         relating to such Vault Collection Accounts, in each case in the form
         prepared by the Check-Casher and approved by the Administrative Agent.
         For so long as the Electronic Presentment Agreement is in effect,
         Collections in respect of the Checks shall be deposited directly into
         the Trust Collection Account. If a Vault Collection Account is not
         subject to an Approved Vault Bank Agreement, it shall be subject to an
         account agreement in form and substance satisfactory to Administrative
         Agent. Until such time as such an account agreement is entered into
         with respect to any Vault Collection Account, notwithstanding any
         provision of this agreement to the contrary, all transfers and
         distributions of funds with respect any such account shall be made only
         in accordance with instructions from the Collateral Agent.

Prior to adding any additional Vault Collection Accounts, Borrower shall provide
an opinion of counsel with respect to perfection issues substantially in the
form of the opinion issued pursuant to Section 5.01(f) prior to the initial
Borrowing and otherwise acceptable to the Administrative Agent. Borrower shall
provide the Collateral Agent and the Administrative Agent with an updated
Schedule I prior to adding any additional Vault Collection Accounts.

         All such amounts in the Vault Collection Accounts, the Trust Collection
Account, and the Reserve Account shall be held by each Approved Vault Bank and
the Collateral Agent (in the case of the Trust Collection Account and the
Reserve Account), as the case may be, in such accounts as part of the Assets as
herein provided, subject to withdrawal by, or at the direction of, the
Collateral Agent, Borrower or Check-Casher, in accordance with, and for the
purposes specified in the provisions of, this Agreement. The Vault Collection
Accounts, the Trust

                                       6
<PAGE>

Collection Account, and the Reserve Account are referred to collectively herein
as the "Transaction Accounts".

                  (b) Investments. All or a portion of the amounts in the Trust
         Collection Account and the Reserve Account (together, the "Trust
         Accounts") shall be invested and reinvested by the Collateral Agent (as
         directed by the Borrower or the Check-Casher on its behalf as its
         authorized agent) in one or more Eligible Investments.

                  (c) Maturity of Investments. No investment of any amount held
         in the Trust Accounts shall mature later than the earlier of (i) the
         Business Day immediately preceding the Settlement Date which is
         scheduled to occur immediately following the date of investment and
         (ii) one week from the date of investment.

                  (d) Form of Investment. Any investment of any funds in the
         Trust Accounts shall be made under the following terms and conditions:

                           (i) each such investment shall be made in the name of
                  the Collateral Agent (in its capacity as such) or in the name
                  of a nominee of the Collateral Agent, and

                           (ii) any certificate or other instrument evidencing
                  such investment shall be delivered directly to the Collateral
                  Agent and endorsed in the name of the Collateral Agent and the
                  Collateral Agent shall have sole possession of such
                  instrument.

                  (e) Collateral Agent Not Liable The Collateral Agent shall not
         in any way be held liable by reason of any insufficiency in the Trust
         Accounts resulting from losses on investments made in accordance with
         the provisions of this Section 3.01 (but the Collateral Agent shall at
         all times remain liable for its own debt obligations, if any,
         constituting part of such investments). The Collateral Agent shall not
         be liable for any investment made by it in accordance with this Section
         3.01 on the grounds that it could have made a more favorable
         investment.

                  (f) Reserve Account. If on any applicable Business Day amounts
         are not available in the Trust Collection Account (A) to make all
         distributions set forth in Section 3.03(c)(i) through (iii) or (B) to
         make all distributions set forth in Section 3.03(d)(i) through (viii),
         as applicable, the Collateral Agent shall withdraw funds from the
         Reserve Account and deposit into the Trust Collection Account the
         lesser of (i) such shortfall and (ii) the amounts on deposit in the
         Reserve Account. If after making all distributions set forth in Section
         3.03(c) and (d) on a Business Day the amount on deposit in the Reserve
         Account exceeds the Required Reserve Level, any such excess shall be
         released by the Collateral Agent to the Borrower.

                  (g) Funding Cessation after Licensing Inquiry. Upon receipt of
         a Licensing Inquiry, if, in the reasonable judgment of the
         Administrative Agent it would be inadvisable for the Borrower to
         continue to provide Cash for SSMs in the jurisdiction whose
         Governmental Authority generated the Licensing Inquiry without the
         Borrower and/or the Check-Casher first (i) complying with that
         jurisdiction's Applicable Law

                                       7
<PAGE>

         regarding licensing or (ii) delivering an opinion of counsel acceptable
         to the Administrative Agent confirming that compliance with such
         Applicable Law is not required based on the activities of the Borrower
         and the Check-Casher contemplated by the Transaction Documents, then
         upon written notice from the Administrative Agent (x) ACE will
         immediately cease providing the instructions to either (I) the
         Collateral Agent or (II) the applicable Approved Vault Bank, in each
         case as contemplated by Section 8.01(f) to transfer funds to any Vault
         Collection Account in such jurisdiction and (y) the Collateral Agent,
         ACE and/or the Borrower, as may be required by the applicable account
         agreement, will immediately cease making any transfers of funds to any
         Vault Collection Account in such jurisdiction and ACE, the Collateral
         Agent and/or the Borrower, as may be required by the applicable account
         agreement, will instruct any applicable Approved Vault Bank to cease
         any distribution of funds and to distribute funds then on deposit in
         any applicable Vault Collection Account only in accordance with further
         instructions from the Collateral Agent.

         SECTION 3.02 Collection of Moneys. If at any time Borrower or the
Check-Casher shall receive any payment on or in respect of any Asset, it shall
hold such payment in trust for the benefit of the Collateral Agent and the other
Secured Parties, shall segregate such payment from the other property of
Borrower or the Check-Casher, as the case may be, and shall, within one Business
Day of receipt, deliver such payment in the form received to the Collateral
Agent for deposit into the Trust Collection Account.

         SECTION 3.03 Settlement.

                  (a) Deposit of Collections. Each of the Check-Casher and the
         Borrower covenants and agrees to cause all Collections to be deposited
         directly into either the applicable Vault Collection Account or the
         Trust Collection Account on each Business Day.

                  (b) Transfer of Collections. The Borrower (or its authorized
         agents, including the Check-Casher) shall instruct the Collateral Agent
         to transfer all Collections from the relevant Vault Collection Accounts
         into the Trust Collection Account to the extent necessary to make the
         distributions set forth in Sections 3.03(d), (e) and (f). The
         Collateral Agent shall make such transfers in accordance with
         instructions from the Borrower or its authorized agents.

                  (c) Daily Settlement Procedures. On each Business Day during
         the Usage Period that is not a Settlement Date or the Usage Period
         Maturity Date, amounts on deposit in the Trust Collection Account
         (including transfers from the Reserve Account pursuant to Section
         3.01(f)) will be applied by the Collateral Agent at the written
         direction of the Check-Casher (or, absent such direction, at the
         direction of the Collateral Agent) in the following order of priority:

                           (i) To the Administrative Agent, for the benefit of
                  the Lender, accrued and unpaid interest (in accordance with
                  Section 2.02) with respect to any Loan for which such Business
                  Day is the last day of the applicable Interest Period for such
                  Loan;

                                       8
<PAGE>

                           (ii) To set aside in a sub-account of the Trust
                  Collection Account an amount equal to the Accrued Facility
                  Costs (net of amounts paid in clause (i) above) for transfer
                  at the further direction of the Administrative Agent (whether
                  on such day or on a subsequent day);

                           (iii) To set aside in the Trust Collection Account or
                  repay any Loans for which such Business Day is the last day of
                  the applicable Interest Period for such Loans in an amount
                  necessary, if any, to maintain the Advance Percentage equal to
                  the Maximum Advance Percentage;

                           (iv) To deposit to the Reserve Account the amount (if
                  any) required for the amount on deposit in the Reserve Account
                  to be equal to the Required Reserve Level; and

                           (v) Any remaining amounts, at the Borrower's
                  election, (A) to a Vault Collection Account, (B) to the
                  reduction of the Facility Amount, (C) to remain in the Trust
                  Collection Account, (D) to ACE in payment under the Company
                  Note or (E) to the Borrower; provided, however, no such
                  distribution shall be made if after making such distribution,
                  the Advance Percentage would be greater than the Maximum
                  Advance Percentage.

                  (d) Monthly Settlement Procedures. All amounts on deposit in
         the Trust Collection Account (including transfers from the Reserve
         Account pursuant to Section 3.01(f)) will be applied in the following
         order of priority by the Collateral Agent at the written direction of
         the Check-Casher (or, absent such direction, at the direction of the
         Collateral Agent) on each Settlement Date prior to the Usage Period
         Maturity Date and prior to the occurrence of a Termination Event or the
         Termination Date:

                           (i) To the Check-Casher, if the Check-Casher is not
                  ACE or an affiliate of ACE, the accrued and unpaid Servicing
                  Fee;

                           (ii) To the Administrative Agent, for the benefit of
                  the Lender, accrued and unpaid interest (in accordance with
                  Section 2.02) and Facility Fees with respect to any Loan for
                  which such Settlement Date is the last day of the applicable
                  Interest Period for such Loan;

                           (iii) To the Collateral Agent, the accrued and unpaid
                  Collateral Agent Fee;

                           (iv) To each Approved Courier, the accrued and unpaid
                  Approved Courier Fee;

                           (v) To each Approved Vault Bank, the accrued and
                  unpaid Approved Vault Bank Fee (to the extent not deducted by
                  the applicable Approved Vault Bank);

                           (vi) If the Check-Casher is ACE, and no Check-Casher
                  Event of Default has occurred, to ACE, the accrued and unpaid
                  Servicing Fee;

                                       9
<PAGE>

                           (vii) To set aside in the Trust Collection Account or
                  pay down the Facility Amount (together with any amounts
                  described in Section 4.02 with respect to such repayment) in
                  an amount necessary, if any, to maintain the Advance
                  Percentage equal to the Maximum Advance Percentage;

                           (viii) To deposit to the Reserve Account the amount
                  (if any) required for the amount on deposit in the Reserve
                  Account to be equal to the Required Reserve Level;

                           (ix) To the applicable Secured Parties, any other
                  amounts due and owing to the Secured Parties pursuant to the
                  Transaction Documents;

                           (x) If the Check-Casher is ACE, to the Check-Casher,
                  the accrued and unpaid Servicing Fee to the extent not paid in
                  (vi) above; and

                           (xi) Any remaining amounts, at the Borrower's
                  election, (A) to a Vault Collection Account, (B) to the
                  reduction of the Facility Amount, (C) to remain in the Trust
                  Collection Account, (D) to ACE in payment under the Company
                  Note or (E) to the Borrower; provided, however, no such
                  distribution shall be made if after making such distribution,
                  the Advance Percentage would be greater than the Maximum
                  Advance Percentage.

                  (e) Usage Period Maturity Date and Termination Settlement
         Procedures. All amounts on deposit in the Trust Collection Account and
         the Reserve Account will be applied by the Collateral Agent at the
         written direction of the Check-Casher (or, absent such a direction, at
         the direction of the Collateral Agent) in the following order of
         priority on the Usage Period Maturity Date and on any Business Day
         after the occurrence of a Termination Event or a Termination Date:

                           (i) To the Check-Casher, if the Check-Casher is not
                  ACE or an affiliate of ACE, the accrued and unpaid Servicing
                  Fee;

                           (ii) To the Administrative Agent for the benefit of
                  the Lender, accrued and unpaid interest (in accordance with
                  Section 2.02) and Facility Fees in respect of all Loans;

                           (iii) To the Collateral Agent, the accrued and unpaid
                  Collateral Agent Fee;

                           (iv) To each Approved Courier, the accrued and unpaid
                  Approved Courier Fee;

                           (v) To each Approved Vault Bank, the accrued and
                  unpaid Approved Vault Bank Fee (to the extent not deducted by
                  the applicable Approved Vault Bank);

                           (vi) To the Lender in an amount necessary to reduce
                  the Facility Amount to zero;

                                       10
<PAGE>

                           (vii) To the applicable Secured Parties, any other
                  amounts due and owing to the Secured Parties pursuant to the
                  Transaction Documents;

                           (viii) If the Check-Casher is ACE, to the
                  Check-Casher, the accrued and unpaid Servicing Fee;

                           (ix) First, to the Borrower, the accrued and unpaid
                  Supplemental Cash Inventory Provision Fee and second, to the
                  Check-Casher, the accrued and unpaid Check-Cashing Payment to
                  the extent of funds available therefor; and

                           (x) To the Borrower, any remaining amounts.

         SECTION 3.04 Payments and Computations, Etc

                  (a) Payments. All amounts to be paid by the Borrower, ACE or
         the Check-Casher to any Secured Party hereunder shall be paid or
         deposited in accordance with the terms hereof no later than 2:00 p.m.
         (New York, New York time) on the day when due in lawful money of the
         United States of America in same day funds to the accounts specified by
         the applicable Secured Parties in writing.

                  (b) Late Payments. Borrower, ACE or Check-Casher, as
         applicable, shall, to the extent permitted by law, pay to the
         applicable Secured Party interest on all amounts not paid or deposited
         by such party when due hereunder at 2% per annum above the Base Rate
         (the "Default Rate"), payable on demand; provided, however, that such
         interest rate shall not at any time exceed the maximum rate permitted
         by Applicable Law.

                  (c) Method of Computation. All computations of interest, yield
         and any fees payable hereunder shall be calculated on the basis of a
         year of 360 days, for the actual days elapsed; provided, however, that
         interest or yield calculated at the Base Rate shall be on the basis of
         a year of 365 days for the actual number of days elapsed.

                  (d) Check-Cashing Payment. Prior to the Final Payout Date, the
         Check-Cashing Payment shall be paid to the Check-Casher solely in
         accordance to the priority of payments set forth in Section 3.03(e)(ix)
         and no such Check-Cashing Payment shall be considered defaulted or
         delinquent if not paid solely because funds are not available therefor
         in accordance with Section 3.03(e)(ix). Following the Final Payout
         Date, the accrued and unpaid Check-Cashing Payment shall be due and
         payable in full.

                                       11
<PAGE>

                                   ARTICLE IV

                                YIELD PROTECTION

         SECTION 4.01 Yield Protection.

                  (a) If after the date hereof (i) Regulation D of the Board of
         Governors of the Federal Reserve System or (ii) any Regulatory Change:

                           (A) shall subject an Affected Party to any tax, duty
                  or other charge with respect to any Loan owned or funded by
                  it, or any obligations or right to make Loans or to provide
                  funding therefor, or shall change the basis of taxation of
                  payments to the Affected Party of any interest or principal
                  owed with respect to Loans funded in whole or in part by it or
                  any other amounts due under this Agreement in respect of the
                  Loans funded by it or its obligations or rights, if any, to
                  make Loans or to provide funding therefor (except for changes
                  in the rate of tax on the overall net income of such Affected
                  Party imposed by the United States of America or by any
                  jurisdiction in which such Affected Party is organized or
                  maintains its principal executive office or an office from
                  which it makes Loans); or

                           (B) shall impose, modify or deem applicable any
                  reserve (including, without limitation, any reserve imposed by
                  the Federal Reserve Board, but excluding any reserve included
                  in the determination of interest on the Loans), special
                  deposit or similar requirement against assets of any Affected
                  Party, deposits or obligations with or for the account of any
                  Affected Party or with or for the account of any Affiliate (or
                  entity deemed by the Federal Reserve Board to be an Affiliate)
                  of any Affected Party (to the extent such Affiliate is
                  providing funding, liquidity or credit enhancement for the
                  Loans), or credit extended by any Affected Party; or

                           (C) shall change the amount of capital maintained or
                  required or requested or directed to be maintained by any
                  Affected Party; or

                           (D) shall change the rate for, or the manner in which
                  the Federal Deposit Insurance Corporation (or a successor
                  thereto) assesses deposit insurance premiums or similar
                  charges; or

                           (E) shall impose any other condition affecting any
                  Loan owned or funded in whole or in part by any Affected
                  Party, or its obligations or rights, if any, to make Loans or
                  to provide funding therefor;

and the result of any of the foregoing is or would be

                  (x) to increase the cost to or to impose a cost on (i) an
         Affected Party funding, purchasing, making or maintaining any Loan, any
         purchases, reinvestments, or loans or other extensions of credit
         hereunder or under the Liquidity Agreement, or any commitment of such
         Affected Party with respect to any of the foregoing, or (ii) the

                                       12
<PAGE>

         Administrative Agent or Liquidity Agent for continuing its or
         Borrower's relationship with Lender,

                  (y) to reduce the amount of any sum received or receivable by
         an Affected Party under this Agreement or under the Liquidity Agreement
         with respect thereto, or

                  (z) in the good faith determination of such Affected Party, to
         reduce the rate of return on the capital of an Affected Party as a
         consequence of its obligations hereunder or arising in connection
         herewith to a level below that which such Affected Party could
         otherwise have achieved,

then on the first Settlement Date after demand by such Affected Party (which
demand shall be accompanied by a statement setting forth the basis of such
demand), Borrower shall pay directly to such Affected Party such additional
amount or amounts as will compensate such Affected Party for such additional or
increased cost or such reduced return.

                  (b) Each Affected Party will promptly notify Borrower and the
         Administrative Agent of any event of which it has knowledge which will
         entitle such Affected Party to compensation pursuant to this Section
         4.01. Failure or delay in giving such notification shall not constitute
         a waiver of such Affected Party's right to such compensation.

                  (c) In determining any amount provided for or referred to in
         this Section 4.01, an Affected Party may use any reasonable averaging
         and attribution methods that it (in its sole discretion) shall deem
         applicable. Any Affected Party when making a claim under this Section
         4.01 shall submit to Borrower a statement as to such increased cost or
         reduced return (including calculation thereof in reasonable detail),
         which statement shall, in the absence of demonstrable error, be
         conclusive and binding upon Borrower.

                  (d) Upon receipt by an Affected Party of a refund or credit
         for any amounts paid by the Borrower under this Section 4.01, such
         Affected Party shall pay to Borrower an amount equal to the amount of
         such refund or credit plus any interest received by or credited to such
         Affected Party with respect to such refund or credit.

         SECTION 4.02 Funding Losses. In the event that any Affected Party shall
incur any loss or expense (including any loss or expense incurred by reason of
the liquidation or reemployment of deposits or other funds acquired by such
Affected Party to make or maintain any liquidity funding under the Liquidity
Agreement) as a result of (i) any payment being made on any day other than on
the last day of the applicable Interest Period, or (ii) any Borrowing not being
made in accordance with a request therefor under Section 1.02, then, upon
written notice from the Administrative Agent or the Liquidity Agent to Borrower
and Check-Casher, Borrower shall pay to the applicable Affected Party the amount
of such loss or expense. Such written notice (which shall include calculations
in reasonable detail) shall, in the absence of manifest error, be conclusive and
binding upon Borrower.

         SECTION 4.03 Taxes. (a) Any and all payments by the Borrower or the
Check-Casher hereunder 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 all liabilities with respect thereto, excluding, net income
taxes that are imposed by the United States and franchise taxes and net

                                       13
<PAGE>

income taxes that are imposed by the state or foreign jurisdiction under the
laws of which the payee is organized or conducts business or any political
subdivision thereof (all such non-excluded taxes, levies, imposts, deductions,
charges, withholdings and liabilities being hereinafter referred to as "Taxes").
If the Borrower or the Check-Casher shall be required by law to deduct any Taxes
from or in respect of any sum payable hereunder to the Lender or any Affected
Party, (i) the Borrower or the Check-Casher, as the case may be, shall make an
additional payment to the payee in an amount sufficient so that, after making
all required deductions (including deductions applicable to additional sums
payable under this section), the payee receives an amount equal to the sum it
would have received had no such deductions been made, (ii) the Borrower or the
Check-Casher, as the case may be, shall make such deductions and (iii) the
Borrower or the Check-Casher, as the case may be, shall pay the full amount
deducted to the relevant taxation authority or other authority in accordance
with Applicable Law.

                  (b) If the Lender or the applicable Affected Party is not
         created or organized under the laws of the United States or a political
         subdivision thereof, such Person shall, to the extent that it may then
         do so under Applicable Laws and regulations, deliver to the Borrower
         (with, in the case of any Affected Party, a copy to the Administrative
         Agent) (i) within thirty (30) days after the date hereof, or, if later,
         the date on which such Person becomes an Affected Party pursuant to
         this Agreement two (or such other number as may from time to time be
         prescribed by Applicable Laws or regulations) duly completed copies of
         IRS Form 4224 or Form 1001 (or any successor form or other certificate
         or statement which may be required from time to time by the relevant
         United States taxing authorities or Applicable Law or regulation), as
         appropriate, to permit the Borrower to make payments hereunder for the
         account of such Person, as the case may be, without deduction or
         withholding of income taxes and (ii) upon the obsolescence of or after
         the occurrence of any event requiring a change in any form or
         certificate previously delivered pursuant to this Section 4.03(b),
         copies (in such numbers as may from time to time be prescribed by
         Applicable Law or regulation) of such additional, amended or successor
         form, certificate or statement as may be required under Applicable Law
         or regulation to permit the Borrower to make payments hereunder for the
         account of such Person without deduction or withholding of income
         taxes.

                  (c) For any period with respect to which the Lender or such
         Affected Party has failed to provide the Borrower with the appropriate
         form, certificate or statement described in clause (b) of this section
         (except if such failure is due to a change in law occurring after the
         date of this Agreement), such Person, as the case may be, shall not be
         entitled to indemnification under clause (a) of this Section with
         respect to any Taxes.

                  (d) Within thirty (30) days of the written request of the
         Borrower therefor, the Lender or such Affected Party, as appropriate,
         shall execute and deliver to the Borrower such certificates, forms or
         other documents which can be furnished consistent with the facts and
         which are reasonably necessary to assist the Borrower in applying for
         refunds of taxes remitted hereunder.

                  (e) If, in connection with an agreement or other document
         providing liquidity support, credit enhancement or other similar
         support to the Lender in connection with this Agreement or the funding
         or maintenance of the Loans hereunder, the Lender is required

                                       14
<PAGE>

         to compensate a bank or other financial institution providing such
         liquidity support, credit enhancement or other similar support in
         respect of taxes under circumstances similar to those described in this
         section then upon written demand by the Lender, the Borrower or the
         Check-Casher shall pay to the Lender such additional amount or amounts
         as may be necessary to reimburse such Lender for any amounts paid by
         it.

                                    ARTICLE V

                            CONDITIONS OF BORROWINGS

         SECTION 5.01 Conditions Precedent to Initial Borrowing. The initial
Borrowing hereunder is subject to the condition precedent that the
Administrative Agent shall have received, on or before the date of such
Borrowing, the following, each (unless otherwise indicated) dated such date and
in form and substance satisfactory to the Administrative Agent:

                  (a) A copy of the approval of the Board of Directors of the
         Check-Casher approving this Agreement and the other Transaction
         Documents to be delivered by it hereunder and the transactions
         contemplated hereby, certified by its Secretary or Assistant Secretary;

                  (b) A good standing certificate for Borrower issued by the
         Secretary of State of Delaware and a good standing certificate for the
         Check-Casher issued by the Secretary of State of Texas;

                  (c) A certificate of the Secretary or Assistant Secretary of
         each of the Check-Casher and the Borrower certifying the names and true
         signatures of the officers authorized on its behalf to sign this
         Agreement and the other Transaction Documents to be delivered by it
         hereunder (on which certificate the Administrative Agent and the
         Liquidity Agent may conclusively rely until such time as they shall
         receive a revised certificate meeting the requirements of this Section
         5.01(c));

                  (d) Execution copies of the organizational documentation of
         Borrower and copies of the articles of incorporation and bylaws of
         Check-Casher, in each case, certified by its Secretary or Assistant
         Secretary;

                  (e) Acknowledgment copies of proper financing statements (Form
         UCC-1), filed on or prior to the date of the initial Borrowing, naming
         Borrower as the debtor and the Collateral Agent as the secured party
         describing all of the assets of the Borrower filed in the state of
         Delaware; copies of search reports listing all effective financing
         statements that name Borrower as debtor and that are filed in the
         jurisdictions in which filings were made pursuant to the preceding
         clause and any other instruments or documents as may be necessary or
         desirable (in the opinion of the Administrative Agent) to perfect the
         Collateral Agent's interest in all Assets; copies of search reports
         listing all effective financing statements that name ACE as debtor and
         that are filed in Texas or other applicable States;

                                       15
<PAGE>

                  (f) Favorable opinions of counsel to Borrower and
         Check-Casher, regarding such items as non-consolidation,
         enforceability, required licensing and perfection of security
         interests;

                  (g) Such powers of attorney as shall be necessary to enable
         the Collateral Agent to collect all Cash and all other Assets;

                  (h) The Note, duly executed by Borrower;

                  (i) A pro forma Borrowing Base Report and a pro forma
         Servicing Report, prepared in respect of the proposed initial
         Borrowing;

                  (j) The Liquidity Agreement, duly executed by Lender, the
         Liquidity Agent, each Liquidity Provider and the other parties thereto;

                  (k) Letters from the rating agencies then rating the
         Commercial Paper Notes confirming that the existing ratings of the
         Commercial Paper Notes will remain in effect after giving effect to the
         transactions contemplated hereby;

                  (l) Execution copies of all agreements entered into by ACE or
         the Borrower relating to the SSMs and the transportation of the Cash,
         including, without limitation, copies of the executed (i) Approved
         Courier Agreements and, if any, Approved Vault Bank Agreements (ii) the
         AT Systems Agreement between the Borrower and AT Systems Inc., (iii)
         the Loomis Custodian Agreement between the Borrower and Loomis, (iv)
         lease agreements with respect to the SSMs, (v) the License Agreement
         dated as of November 22, 2000 between ACE and H&R, together with
         Addendum No. 1 thereto dated as of May 31, 2001 and (vi) the Joint
         Marketing Agreement dated as of January 11, 2001 between ACE and H&R;

                  (m) Proof of insurance reasonably acceptable to the
         Administrative Agent covering any theft, destruction, or other loss of
         Cash while such Cash is located in an SSM naming the Collateral Agent
         as loss payee;

                  (n) Executed copies of an acknowledgment substantially in the
         form of Exhibit 5.01(n) hereto from each owner or lessor of any SSM
         (including Diebold) and each maintenance provider (including Diebold
         and Fujitsu Transaction Solutions Inc.);

                  (o) [RESERVED];

                  (p) Executed copies of an acknowledgment substantially in the
         form of Exhibit 5.01(p) hereto from each agent bank for ACE (including
         Wells Fargo Bank Texas, National Association, Principal Life Insurance
         Company, and Travelers Express Company, Inc.);

                  (q) Executed copies of an acknowledgment substantially in the
         form of Exhibit 5.01(q) hereto from an Approved Tax Provider;

                                       16
<PAGE>

                  (r) Payment in full of the Annual Commitment Fee in respect of
         the first Usage Period and all other amounts payable under the Fee
         Letter on or prior to the date of the initial Borrowing;

                  (s) Confirmation satisfactory to the Administrative Agent that
         the Borrower has deposited $1,000,000 into the Reserve Account;

                  (t) Such other documents, opinions and certificates as the
         Administrative Agent may reasonably request;

                  (u) The Borrower shall have executed and delivered the Company
         Note to the Check-Casher;

                  (v) The Borrower, the Check-Casher, H&R, Household Tax Masters
         and Imperial Capital Bank shall have executed and delivered the
         Electronic Presentment Agreement substantially in the form of Exhibit
         5.01(v) hereto;

                  (w) The Borrower and the Collateral Agent shall have executed
         and delivered the Account Control Agreement substantially in the form
         of Exhibit 5.01(w) hereto; and

                  (x) The Collateral Agent and Texas Capital Bank, National
         Association shall have executed and delivered the Intercreditor
         Agreement substantially in the form of Exhibit 5.01(x) hereto.

         SECTION 5.02 Conditions Precedent to All Borrowings. Each Borrowing
(including the initial Borrowing) hereunder shall be subject to the further
conditions precedent that on the date of such Borrowing the following statements
shall be true (and Borrower by accepting the amount of such Borrowing shall be
deemed to have certified that):

                  (a) the representations and warranties contained in Sections
         6.01 and 6.02 are correct in all material respects on and as of such
         day as though made on and as of such day (and shall be deemed to have
         been made on such day);

                  (b) no event has occurred and is continuing, or would result
         from such Borrowing, that constitutes an Event of Default, Check-Casher
         Event of Default or Unmatured Event of Default;

                  (c) after giving effect to each proposed Borrowing, no Program
         Deficiency will exist;

                  (d) the Termination Date has not occurred and no Termination
         Event has occurred and is continuing;

                  (e) the Borrower shall have delivered an executed Borrowing
         Notice (certified by any Vice President of the Borrower and by the
         Check-Casher) to the Administrative Agent;

                                       17
<PAGE>

                  (f) the Check-Casher or the Borrower shall have delivered to
         the Administrative Agent (i) a current list stating the identity of
         each Approved Courier (with a contact person and telephone number) and
         (ii) execution copies of all agreements relating to the SSMs;

                  (g) the Check-Casher or the Borrower shall have delivered to
         the Administrative Agent copies of such executed written consents and
         waivers from third parties as shall be necessary to ensure the
         Collateral Agent's or each Approved Courier's unfettered access to the
         Cash;

                  (h) no law, rule or regulation shall prohibit and no order,
         judgment or decree of any Governmental Authority shall prohibit or
         enjoin the making of such Borrowing;

                  (i) the Check-Casher shall have delivered to the
         Administrative Agent electronic files presenting in detail satisfactory
         to the Administrative Agent (i) the amount of Cash located in each SSM,
         (ii) the status of all Checks which have been deposited in SSMs and
         (iii) the status of all Checks presented to Approved Banks for payment;
         and

                  (j) the Administrative Agent and Liquidity Agent shall have
         received such other approvals, opinions and documents as they may
         reasonably request.

                                   ARTICLE VI

                         REPRESENTATIONS AND WARRANTIES

         SECTION 6.01 Representations and Warranties of Borrower. Borrower
represents and warrants as follows:

                  (a) Organization and Good Standing. It has been duly organized
         and is validly existing as a limited liability company in good standing
         under the laws of the State of Delaware.

                  (b) Due Qualification. It is duly qualified to do business as
         a foreign entity in good standing (if applicable), and has obtained all
         necessary licenses and approvals (including, without limitation, any
         license approvals or authorizations related to the cashing of checks),
         in all jurisdictions in which the failure to obtain such
         qualifications, licenses or approvals could reasonably be expected to
         have a Material Adverse Effect.

                  (c) Power and Authority; Due Authorization. It (i) has all
         necessary power, authority and legal right to (A) own its properties
         and to conduct its business as such properties are presently owned and
         such business is presently conducted, (B) execute and deliver the
         Transaction Documents to which it is a party, (C) carry out the terms
         of the Transaction Documents, and (D) borrow the Loans and grant a
         security interest in its Assets on the terms and conditions herein
         provided and (ii) has duly authorized by all necessary action the
         execution, delivery and performance of this Agreement and the other
         Transaction Documents to which it is a party and the borrowing of the
         Loans and the granting of the security interest in its assets on the
         terms and conditions herein provided.

                                       18
<PAGE>

                  (d) Binding Obligations. Each Transaction Document to which it
         is a party constitutes a legal, valid and binding obligation of it
         enforceable in accordance with its terms, except as enforceability may
         be limited by bankruptcy, insolvency, reorganization, or other similar
         laws affecting the enforcement of creditors' rights generally or by
         general principles of equity, regardless of whether such enforceability
         is considered in a proceeding in equity or at law.

                  (e) No Conflict. The consummation of the transactions
         contemplated by the Transaction Documents and the fulfillment of the
         terms thereof will not (i) conflict with, result in any breach of any
         of the terms and provisions of, or constitute (with or without notice
         or lapse of time or both) a default under, its organizational
         documentation, or any indenture, loan agreement, mortgage, deed of
         trust, or other agreement or instrument to which it is a party or by
         which it or any of its properties is bound, (ii) result in the creation
         or imposition of any Lien upon any of its properties pursuant to the
         terms of any such indenture, loan agreement, mortgage, deed of trust,
         or other agreement or instrument, other than this Agreement, or (iii)
         violate any Applicable Law applicable to it or any of its properties.

                  (f) No Proceedings. There are no proceedings or investigations
         pending or, to the best of its knowledge, threatened before any court,
         regulatory body, administrative agency, or other tribunal or
         governmental instrumentality (i) asserting the invalidity of any
         Transaction Document, (ii) seeking to prevent the consummation of any
         of the transactions contemplated by any Transaction Document, or (iii)
         seeking any determination or ruling that could reasonably be expected
         to have a Material Adverse Effect.

                  (g) Judgments. No injunction, decree or other decision has
         been issued or made by any court, governmental agency or
         instrumentality thereof that prevents, and to Borrower's knowledge no
         threat by any person has been made that could reasonably be expected to
         result in any such decision that would prevent, it from conducting a
         significant part of its business operations.

                  (h) Government Approvals. No authorization or approval or
         other action by, and no notice to or filing with, any Governmental
         Authority is required for the due execution, delivery and performance
         by it of any Transaction Document (other than the financing statements
         referred to in Section 5.01(e)).

                  (i) Financial Condition. Since the date of its organization,
         there has been no material adverse change in the financial condition,
         business, business prospects or operations of the Borrower.

                  (j) Margin Regulations. The use of funds obtained by Borrower
         under this Agreement will not conflict with or contravene any of
         Regulations T, U or X promulgated by the Board of Governors of the
         Federal Reserve System from time to time.

                                       19
<PAGE>

                  (k) Perfected Interest. Each Asset is owned by Borrower free
         and clear of any Lien other than any Lien created under the
         Transactions Documents for the benefit of the Collateral Agent. Except
         for the filing of the financing statements referred to in Section 5.01,
         no further action, including any filing or recording of any document,
         is necessary in order to establish, protect and perfect the first
         priority security interest of the Collateral Agent in the assets of
         Borrower. No financing statement or other instrument similar in effect
         covering any asset of Borrower or any interest therein is on file in
         any recording office except such as may be filed (i) in connection with
         any Lien arising solely as the result of any action taken by Collateral
         Agent or (ii) in favor of the Collateral Agent, for the benefit of the
         Secured Parties.

                  (l) Accurate Information. No Servicing Reports or other
         information, exhibit, financial statement, document, book, record or
         report furnished by or on behalf of Borrower to the Administrative
         Agent or Liquidity Agent in connection with any of the Transaction
         Documents was inaccurate in any material respect as of the date it was
         or (except as otherwise disclosed to the Administrative Agent or
         Liquidity Agent at such time) as of the date so furnished, or contained
         any material misstatement of fact or omitted to state a material fact
         or any fact necessary to make the statements contained therein not
         materially misleading.

                  (m) Offices. The chief place of business and chief executive
         office of Borrower are located at the address of Borrower identified on
         the signature pages hereof and the offices where Borrower keeps all its
         books, records and documents are located at such address (or at such
         other locations, notified to the Administrative Agent in accordance
         with Section 7.01(d), in jurisdictions where all action necessary to
         maintain the Collateral Agent's first priority perfected interest in
         the assets of Borrower has been taken and completed).

                  (n) Capital of Borrower. Borrower is solvent and has adequate
         capital for its business and undertakings.

                  (o) Investment Company Act. Borrower is not, and is not
         controlled by, an "investment company" registered or required to be
         registered under the Investment Company Act of 1940, as amended.

                  (p) Legal Names. Borrower has not been known by any legal
         name, and has used no trade names, other than the name set forth on the
         signature page hereto and has not been the subject of any merger or
         other corporate reorganization that resulted in a change of name,
         identity or structure or jurisdiction of organization.

                  (q) Taxes. Borrower has filed or caused to be filed all tax
         returns which, to its knowledge, are required to be filed. Borrower has
         paid or made adequate provisions for the payment of all taxes and all
         assessments made against it or any of its property (other than any
         amount of tax the validity of which is currently being contested in
         good faith by appropriate proceedings and with respect to which
         reserves in accordance with GAAP have been provided on the books of
         Borrower), and no tax lien has been filed and, to

                                       20
<PAGE>

         Borrower's knowledge, no claim is being asserted, with respect to any
         such tax, fee or other charge.

         SECTION 6.02 Representations and Warranties of the Check-Casher and
ACE. Each of the Check-Casher and ACE represents and warrants as follows:

                  (a) Organization and Good Standing. It has been duly organized
         and is validly existing as a corporation under the laws of the state of
         its formation.

                  (b) Due Qualification. It is duly qualified to do business as
         a foreign corporation in good standing, and has obtained all necessary
         licenses and approvals (including, without limitation, any licenses,
         approvals or authorizations related to the cashing of checks), in all
         jurisdictions in which the failure to obtain such qualification,
         licenses or approvals could reasonably be expected to have a Material
         Adverse Effect.

                  (c) Power and Authority; Due Authorization. It (i) has all
         necessary corporate power and authority to (A) own its properties and
         to conduct its business as such properties are presently owned and such
         business is presently conducted, (B) execute and deliver the
         Transaction Documents to which it is a party, and (C) carry out the
         terms of the Transaction Documents, and (ii) has duly authorized by all
         necessary corporate action its execution, delivery and performance of
         the Transaction Documents to which it is a party.

                  (d) Binding Obligations. Each Transaction Document to which it
         is a party constitutes a legal, valid and binding obligation of it,
         enforceable against it in accordance with its terms, except as
         enforceability may be limited by bankruptcy, insolvency,
         reorganization, or other similar laws affecting the enforcement of
         creditors' rights generally and by general principles of equity,
         regardless of whether such enforceability is considered in a proceeding
         in equity or at law.

                  (e) No Violation. The consummation of the transactions
         contemplated by the Transaction Documents and the fulfillment of the
         terms thereof will not (i) conflict with, result in any breach of any
         of the terms and provisions of, or constitute (with or without notice
         or lapse of time or both) a default under, its organizational
         documentation or any indenture, loan agreement, mortgage, deed of
         trust, or other agreement or instrument to which it is a party or by
         which it or any of its properties is bound, (ii) result in the creation
         or imposition of any Lien upon any of its properties pursuant to the
         terms of any such indenture, loan agreement, mortgage, deed of trust,
         or other agreement or instrument, other than this Agreement, or (iii)
         violate any Applicable Law applicable to it or any of its properties.

                  (f) No Proceedings. There are no proceedings or investigations
         pending or, to the best of its knowledge, threatened before any court,
         regulatory body, administrative agency, or other tribunal or
         governmental instrumentality (i) asserting the invalidity of any
         Transaction Document, (ii) seeking to prevent the consummation of any
         of the transactions contemplated by any Transaction Document, or (iii)
         seeking any determination or ruling that might have a Material Adverse
         Effect.

                                       21
<PAGE>

                  (g) Government Approvals. Other than the filing of the UCC
         financing statements described in Section 5.01 and other than as made
         or obtained prior to the date hereof, no authorization or approval or
         other action by, and no notice to or filing with, any Governmental
         Authority is required for the due execution, delivery and performance
         by it of any Transaction Document.

                  (h) Judgments. No injunction, decree or other decision has
         been issued or made by any court, governmental agency or
         instrumentality thereof that prevents, and to its knowledge no threat
         by any person has been made that could be expected to result in any
         such decision that would prevent, it from conducting a significant part
         of its business operations other than the Consent Decree dated October
         25, 2002 entered In the Matter of Ace Cash Express, Inc., Irving Texas,
         Agent and Bank Service Provider for Goleta National Bank.

                  (i) Accurate Information. No Servicing Report or other
         information, exhibit, financial statement, document, book, record or
         report furnished by or on behalf of it or its Affiliates to the
         Administrative Agent or the Liquidity Agent in connection with any of
         the Transaction Documents was inaccurate in any material respect as of
         the date it was dated or (except as otherwise disclosed to the
         Administrative Agent and the Liquidity Agent at such time) as of the
         date it was so furnished, or contained any material misstatement of
         fact or omitted to state a material fact or any fact necessary to make
         the statements contained therein not materially misleading.

                  (j) Offices. Its chief place of business and chief executive
         office are located at the address identified on the signature pages
         hereof, and the offices where it keeps all its books, records and
         documents related to the Borrower and the Assets are located at such
         addresses (or at such other locations, notified to the Administrative
         Agent at least 30 days' prior to any such change).

                  (k) Servicing Programs. No license or approval is required for
         the Collateral Agent's use of any program used by Check-Casher in the
         servicing of the Assets, other than those which have been obtained (and
         are assignable by the Check-Casher to the Collateral Agent or a
         successor Check-Casher) and are in full force and effect.

                  (l) Taxes. Check-Casher has filed or caused to be filed all
         tax returns which, to its knowledge, are required to be filed.
         Check-Casher has paid or made adequate provisions for the payment of
         all taxes and all assessments made against it or any of its property
         (other than any amount of tax the validity of which is currently being
         contested in good faith by appropriate proceedings and with respect to
         which reserves in accordance with GAAP have been provided on the books
         of Check-Casher), and no tax lien has been filed and, to Check-Casher's
         knowledge, no claim is being asserted, with respect to any such tax or
         other governmental charge.

                  (m) Financial Condition. Since September 30, 2002, there has
         been no material adverse change in its financial condition, business,
         business prospects or operations.

                                       22
<PAGE>

                  (n) Fee Compliance. Fees charged by ACE for use of the SSMs by
         customers of an Approved Tax Provider comply with all Applicable Laws
         governing such fees in the state in which such SSM is located.

                                   ARTICLE VII

             GENERAL COVENANTS OF THE BORROWER AND THE CHECK-CASHER

         SECTION 7.01 Affirmative Covenants of Borrower. From the date hereof
until the Final Payout Date, Borrower will, unless the Administrative Agent and
the Liquidity Agent shall otherwise consent in writing:

                  (a) Compliance with Laws, Etc. Comply in all material respects
         with all Applicable Laws (including any applicable licensing
         requirements), including, without limitation, those with respect to the
         Assets.

                  (b) Preservation of Existence. Preserve and maintain its
         existence, rights, franchises and privileges in the jurisdiction of its
         organization, and qualify and remain qualified in good standing as a
         foreign entity in each jurisdiction where the failure to preserve and
         maintain such existence, rights, franchises, privileges and
         qualification could reasonably be expected to have a Material Adverse
         Effect.

                  (c) Audits. At any time and from time to time during regular
         business hours, permit the Lender, the Administrative Agent, the
         Liquidity Agent, the Collateral Agent and any of their respective
         agents or representatives, (A) to examine and make copies of and
         abstracts from all Borrower's books, records and documents (including,
         without limitation, computer tapes and disks) in the possession or
         under the control of Borrower, and (B) to visit the offices and
         properties of Borrower for the purpose of examining such materials
         described in clause (i)(A) above, and to discuss matters relating to
         the Assets or Borrower's performance hereunder with any of the officers
         or employees of Borrower having knowledge of such matters; provided,
         however, that (x) prior to the occurrence of an Event of Default, such
         reviews shall take place no more frequently than quarterly in the year
         in which the first Usage Period falls and semi-annually thereafter and
         (y) after the occurrence of an Event of Default, the frequency of such
         reviews shall be at the Administrative Agent's sole discretion;
         provided further that the maximum amount payable by the Borrower and
         ACE for expenses associated with any such audits described in this
         Section 7.01(c) and Section 7.04(c) shall be $20,000 per annum prior to
         the occurrence of an Event of Default.

                  (d) Maintenance of Office; Location of Records. Keep its chief
         place of business and chief executive office, and the offices where it
         keeps its records, at the address of Borrower referred to in Section
         6.01(m) or, upon 30 days' prior written notice to the Administrative
         Agent, at such other locations in jurisdictions where all action
         required to maintain the Collateral Agent's first priority perfected
         interest in the assets of Borrower shall have been taken and completed.

                                       23
<PAGE>

                  (e) Keeping of Records and Books of Account. Maintain and
         implement administrative and operating procedures (including, without
         limitation, an ability to recreate records evidencing Assets in the
         event of the destruction of the originals thereof), and keep and
         maintain, all documents, books, records and other information
         reasonably necessary or advisable for the collection of all Assets
         (including, without limitation, records adequate to permit the daily
         identification of the outstanding Assets) including, in each case,
         electronic versions thereof.

                  (f) Use of Funds. Apply all Loan proceeds solely to provide
         cash for use in SSMs for the purposes of cashing Checks.

                  (g) Compliance with Agreements. Comply with the terms of each
         of the Approved Courier Agreements, Approved Vault Bank Agreements, all
         agreements with Approved Tax Providers, the Electronic Presentment
         Agreement and all agreements with Approved Banks, entered into in
         connection with the transactions contemplated by the Transaction
         Documents.

                  (h) Accurate Information. No Servicing Report or other
         information, exhibit, financial statement, document, book, record or
         report furnished or to be furnished by or on behalf of it or its
         Affiliates to the Administrative Agent or the Liquidity Agent in
         connection with any of the Transaction Documents was or will be
         inaccurate in any material respect as of the date it was or will be
         dated or (except as otherwise disclosed to the Administrative Agent and
         the Liquidity Agent at such time) as of the date it was so furnished,
         or contained or will contain any material misstatement of fact or
         omitted or will omit to state a material fact or any fact necessary to
         make the statements contained therein not materially misleading.

                  (i) Notice of Licensing Inquiry. Provide notice to the
         Administrative Agent immediately upon becoming aware of any Licensing
         Inquiry.

         SECTION 7.02 Reporting Requirements of Borrower. From the date hereof
until the Final Payout Date, Borrower will, unless the Administrative Agent
shall otherwise consent in writing, furnish to the Administrative Agent and the
Liquidity Agent:

                  (a) Monthly/Quarterly Financial Statements. As soon as
         available and in any event within 30 days after the end of each Monthly
         Period during the period from January through May of each calendar year
         and within 45 days (or 60 days in the case of the last quarter of each
         fiscal year) after the end of each quarter of each fiscal year of
         Borrower ending in March and June of each calendar year, copies of the
         financial statements of Borrower prepared in conformity with GAAP
         (except as to the absence of footnotes), duly certified by the
         Borrower;

                  (b) ERISA. Promptly after the filing or receiving thereof,
         copies of all reports and notices with respect to any Reportable Event
         defined in Article IV of ERISA which Borrower files under ERISA with
         the IRS, the Pension Benefit Guaranty Corporation or the U.S.
         Department of Labor or which Borrower receives from the Pension Benefit
         Guaranty Corporation;

                                       24
<PAGE>

                  (c) Event of Defaults. Immediately upon becoming aware of the
         existence of any Event of Default or Unmatured Event of Default, a
         written statement of an officer of Borrower setting forth details of
         such event and the action that Borrower proposes to take with respect
         thereto;

                  (d) Termination of Other Agreements. Immediately upon
         receiving notice of, or becoming aware of, the cancellation or
         termination of any Approved Courier Agreement, Approved Vault Bank
         Agreement or insurance policy covering the Cash, a copy of such notice
         or notice of such cancellation or termination;

                  (e) Litigation and Insurance Claims. As soon as possible and
         in any event within two Business Days of Borrower's knowledge thereof,
         notice of (i) any litigation, investigation or proceeding which may
         exist at any time which could reasonably be expected to have a Material
         Adverse Effect, (ii) any material adverse development in previously
         disclosed litigation and (iii) any material losses with respect to any
         Cash for which claims have been or will be made by Borrower, the
         Check-Casher or any Approved Courier; and

                  (f) Other. Promptly, from time to time, such other
         information, documents, records or reports with respect to the assets
         of Borrower or the condition or operations, financial or otherwise, of
         Borrower as the Administrative Agent or the Liquidity Agent may from
         time to time reasonably request in order to protect the interests of
         the Secured Parties under or as contemplated by this Agreement.

         SECTION 7.03 Negative Covenants of Borrower. From the date hereof until
the Final Payout Date, Borrower will not, without the prior written consent of
the Administrative Agent:

                  (a) Sales, Liens, Etc. Except as otherwise provided herein,
         sell, assign (by operation of law or otherwise) or otherwise dispose
         of, or create or suffer to exist any Lien (other than liens created
         under the Transaction Documents) upon or with respect to, any of the
         assets of Borrower (including, without limitation, the Assets), or any
         interest therein, or any account to which any Collections of any Asset
         are sent, the Trust Collection Account, any Vault Collection Account or
         any right to receive income or proceeds from or in respect of any of
         the foregoing. It being understood that Borrower may receive funds
         distributed to it in accordance with Section 3.03 and distribute such
         funds to its members in accordance with its limited liability company
         agreement.

                  (b) Mergers, Acquisitions, Sales, etc. Be a party to any
         merger or consolidation, or purchase or otherwise acquire all or
         substantially all of the assets or stock of any class of, or
         partnership or joint venture interest in, any other Person, or sell,
         transfer, convey or lease all or any substantial part of its assets to
         another Person.

                  (c) Incurrence of Indebtedness. Incur or permit to exist any
         indebtedness or liability on account of deposits or advances or for
         borrowed money or for the deferred purchase price of any property or
         services, except (i) current accounts payable arising under the
         Transaction Documents, (ii) the Loans and (iii) the Company Note.

                                       25
<PAGE>

                  (d) Conduct of Business. Engage in any business or activity
         other than as contemplated by the Transaction Documents and activities
         necessary or incidental thereto.

                  (e) Organizational Documentation. Amend or revoke its
         organizational documentation or change its jurisdiction of
         organization.

                  (f) Change of Name. Change its name, corporate structure or
         jurisdiction of organization unless it has (i) given the Administrative
         Agent at least 30 days' prior written notice thereof and (ii) executed,
         delivered and filed such amendments to the UCC financing statements
         filed in connection herewith as the Administrative Agent may request,
         and take such other actions as are necessary or advisable to continue
         the perfection of the Collateral Agent's interest in the assets of
         Borrower.

                  (g) Limitation on Cash in Transit. Allow any amount of Cash
         greater than the amount for which Approved Couriers are insured under
         approved insurance policies to be in the possession of the Approved
         Couriers, in the aggregate, at any one time.

                  (h) Other Agreements. Enter into any Approved Courier
         Agreement, Approved Vault Bank Agreement or any other agreement with
         respect to the Transaction Documents which has not been approved by the
         Administrative Agent.

         SECTION 7.04 Covenants of the Check-Casher and ACE. From the date
hereof until the Final Payout Date, each of the Check-Casher and ACE will,
unless the Administrative Agent shall otherwise consent in writing:

                  (a) Preservation of Existence. Preserve and maintain its
         corporate existence, rights, franchises and privileges in the
         jurisdiction of its organization, and qualify and remain qualified in
         good standing as a foreign corporation in each jurisdiction where the
         failure to preserve and maintain such existence, rights, franchises,
         privileges and qualification would have a Material Adverse Effect.

                  (b) Compliance with Laws. Comply in all material respects with
         all Applicable Laws (including licensing requirements).

                  (c) Audits. (i) At any time and from time to time during
         regular business hours, permit the Administrative Agent, the Collateral
         Agent, the Liquidity Agent and any of their respective agents or
         representatives, (A) to examine and make copies of and abstracts from
         all Check-Casher's books, records and documents (including, without
         limitation, computer tapes and disks) in the possession or under the
         control of Check-Casher relating to the Assets and (B) to visit the
         offices and properties of Check-Casher for the purpose of examining
         such materials described in clause (i)(A) next above, and to discuss
         matters relating to the Assets or Check-Casher's performance hereunder
         with any of the officers or employees of Check-Casher having knowledge
         of such matters; provided, however, that (x) prior to the occurrence of
         an Event of Default, such reviews shall take place no more frequently
         than quarterly in the year in which the first Usage Period falls and
         semi-annually thereafter and (y) after the occurrence of an Event of
         Default, the frequency of such reviews shall be at the Administrative
         Agent's sole

                                       26
<PAGE>

         discretion, and (ii) without limiting the provisions of clause (i) next
         above, from time to time on reasonable request of the Collateral Agent,
         the Administrative Agent or the Liquidity Agent, permit certified
         public accountants or other auditors acceptable to the Collateral
         Agent, the Administrative Agent or the Liquidity Agent to conduct, at
         Check-Casher's expense, not more than twice in each fiscal year, unless
         an Event of Default shall have occurred and be continuing in which case
         the reviews will be at the expense of the Check-Casher and as frequent
         as reasonably necessary, a review of Check-Casher's books and records
         with respect to the Assets; provided, however, that the maximum amount
         payable by the Borrower and ACE for expenses associated with such
         audits described in this Section 7.04(c) and of Section 7.01(c) shall
         be $20,000 per annum prior to the occurrence of an Event of Default.

                  (d) UCC Financing Statements. File such UCC financing or
         continuation statements, or amendments thereto or assignments thereof,
         and such other instruments or notices, as may be necessary or
         appropriate, in accordance with the terms of this Agreement to maintain
         the first priority perfected security interest of the Collateral Agent
         in the assets of Borrower.

                  (e) Notice. Deliver to the Administrative Agent and the
         Liquidity Agent:

                           (i) immediately upon becoming aware of the existence
                  of any Event of Default, Check-Casher Event of Default or
                  Unmatured Event of Default, written notice describing its
                  nature and period of existence and what action Check-Casher is
                  taking or proposing to take with respect thereto;

                           (ii) as soon as possible or in any event within two
                  (2) Business Days of Check-Casher's knowledge thereof, notice
                  of any litigation, investigation or proceeding which may exist
                  at any time which could reasonably be expected to have a
                  Material Adverse Effect and any material adverse development
                  in previously disclosed litigation;

                           (iii) promptly, from time to time, such other
                  information, documents, records or reports respecting the
                  Assets or condition or operations, financial or otherwise, of
                  Check-Casher as the Administrative Agent or the Liquidity
                  Agent may from time to time reasonably request in order to
                  protect the interests of the Secured Parties under or as
                  contemplated by this Agreement;

                           (iv) promptly upon the execution thereof, copies of
                  all agreements relating to the SSMs entered into by the
                  Check-Casher in accordance with this Agreement;

                           (v) immediately upon becoming aware of any
                  cancellation or termination of any Approved Courier Agreement
                  or Approved Vault Bank Agreement, written notice of such
                  cancellation or termination; and

                           (vi) promptly upon the filing thereof, copies of all
                  registration statements (other than the exhibits thereto) and
                  annual, quarterly or monthly reports that ACE files with the
                  Securities and Exchange Commission.

                                       27
<PAGE>

                  (f) Quarterly and Annual Financial Statements. Furnish to the
         Administrative Agent:

                           (i) As soon as available and in any event within 45
                  days (or 60 days in the case of the last quarter of each
                  fiscal year) after the end of each quarter of each fiscal year
                  of ACE, copies of the consolidated financial statements of ACE
                  prepared in conformity with GAAP (except as to the absence of
                  footnotes), duly certified by the chief financial officer of
                  ACE; and

                           (ii) As soon as available and in any event within 90
                  days after the end of each fiscal year of ACE, copies of the
                  audited consolidated and consolidating financial statements of
                  ACE (which shall include the Borrower) prepared in conformity
                  with GAAP, duly certified by independent certified public
                  accountants of recognized standing selected by ACE;

                  (g) Other Agreements. Only enter into Approved Courier
         Agreements, Approved Vault Bank Agreements and other agreements with
         respect to the SSMs which have been approved by the Administrative
         Agent.

                  (h) SSM Cash Maximums. Not to permit Cash in excess of
         $300,000 to be placed in, or to remain for a period in excess of one
         Business Day in, any SSM.

                  (i) Restricted Access. Not to permit any Person other than an
         Approved Courier or a maintenance provider which has signed an
         acknowledgment in a form acceptable to the Administrative Agent to have
         access to Cash or Checks in any SSM.

                  (j) Notice of Financing Defaults. Deliver a notice to the
         Administrative Agent and the Liquidity Agent within one Business Day of
         (A) becoming aware of any "default", "event of default" or other
         similar event (including any event which with the lapse of time or
         giving of notice or both would become such a "default", "event of
         default" or other similar event) (an "SSM Financing Default") under any
         agreement pursuant to which ACE finances or leases an SSM or (B)
         receipt of notice from any SSM Lender of a notice of an SSM Financing
         Default under any agreement pursuant to which ACE finances or leases an
         SSM, in each case, without giving effect to any cure periods set forth
         in such agreements. Such notice shall include a description of the
         applicable event, a copy of the notice, if any, received from the
         applicable SSM Lender, and a description of the steps being taken or to
         be taken in response to such event.

                  (k) Keeping of Records and Books of Account. Maintain and
         implement administrative and operating procedures (including, without
         limitation, an ability to recreate records evidencing Assets in the
         event of the destruction of the originals thereof), and keep and
         maintain, all documents, books, records and other information
         reasonably necessary or advisable for the collection of all Assets
         (including, without limitation, records adequate to permit the daily
         identification of the outstanding Assets).

                  (l) Disposition of Cash. Under no circumstances direct any
         Cash to be deposited into any account other than a Vault Collection
         Account or a Trust Account.

                                       28
<PAGE>

                  (m) SSM Cash Recipients. Ensure that the SSMs will be
         configured and operated at all times such that an SSM shall dispense
         Cash only to a Tax Filer who deposits a Check in exchange therefor, who
         enters a valid personal identification number provided to such Tax
         Filer by an Approved Tax Provider and a valid social security number
         and who accurately identifies and selects the Tax Filer's Mother's
         maiden name or such other security procedure as may be adopted by the
         Approved Tax Provider, prompt notice of which shall be provided to the
         Administrative Agent.

                  (n) Check Endorsement. Ensure that the check cashing program
         related to the SSMs at all times is established and operating such that
         each Check deposited into an SSM will be automatically endorsed: "Void
         ACE Cash Express Void".

                  (o) Use of Approved Couriers. In addition, no armored car
         carrier shall be utilized by the Check-Casher for armored car courier
         cash transportation services unless such Person is an Approved Courier
         who:

                           (i) is bonded or insured consistent with industry
                  practice in a manner acceptable to the Administrative Agent;

                           (ii) has executed and delivered to the Collateral
                  Agent an Approved Courier Agreement in which it shall have
                  agreed, inter alia, (1) to act as bailee on behalf of the
                  Collateral Agent while any Cash and/or Checks are in their
                  possession and (2) to indemnify the Borrower against any loss
                  while any Cash and/or Checks are in their possession.

                  (p) Compliance with Agreements. Comply with the terms of each
         of the Approved Courier Agreements, Approved Vault Bank Agreements, all
         agreements with each SSM Lender, all agreements with Approved Tax
         Providers, the Electronic Presentment Agreement and all agreements with
         Approved Banks entered into in connection with the transactions
         contemplated by the Transaction Documents.

                  (q) Accurate Information. No Servicing Report or other
         information, exhibit, financial statement, document, book, record or
         report furnished or to be furnished by or on behalf of it or its
         Affiliates to the Administrative Agent or the Liquidity Agent in
         connection with any of the Transaction Documents was or will be
         inaccurate in any material respect as of the date it was or will be
         dated or (except as otherwise disclosed to the Administrative Agent and
         the Liquidity Agent at such time) as of the date it was so furnished,
         or contained or will contain any material misstatement of fact or
         omitted or will omit to state a material fact or any fact necessary to
         make the statements contained therein not materially misleading.

                  (r) Notice of Licensing Inquiry. Provide notice to the
         Administrative Agent immediately upon becoming aware of any Licensing
         Inquiry.

         SECTION 7.05 Separate Existence. Each of the Borrower and ACE hereby
acknowledges that the Secured Parties are entering into the transactions
contemplated by the Transaction Documents in reliance upon Borrower's identity
as a legal entity separate from ACE and its Affiliates. Therefore, from and
after the date hereof, Borrower and ACE shall take all

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<PAGE>

steps specifically required by this Agreement or reasonably required by the
Administrative Agent to continue Borrower's identity as a separate legal entity
and to make it apparent to third Persons that Borrower is an entity with assets
and liabilities distinct from those of any other Person and is not a division of
any other Person. Without limiting the generality of the foregoing and in
addition to and consistent with the other covenants set forth herein, each of
Borrower and ACE shall take such actions as shall be required in order that:

                  (a) Borrower will be a limited liability company whose primary
         activities are restricted in its organizational documentation and whose
         purposes include borrowing funds from Lender and using such funds to
         provide Cash to SSMs to be used solely to provide funds to enable ACE
         to cash Checks, and conducting such other activities as it deems
         necessary or appropriate to carry out its primary activities;

                  (b) Any employee, consultant or agent of Borrower will be
         compensated from Borrower's funds for services provided to Borrower.
         Borrower will not engage any agents other than its attorneys, auditors
         and other professionals, and a Check-Casher and any other agent
         contemplated by the Transaction Documents, which Check-Casher will be
         fully compensated for its services by payment of the Servicing Fee and
         Check-Cashing Payment;

                  (c) Subject to the following sentence, Borrower will not incur
         any material indirect or overhead expenses for items shared with ACE
         (or any other Affiliate thereof) which are not reflected in the
         Servicing Fee and Check-Cashing Payment. To the extent, if any, that
         ACE (or any Affiliate thereof) shares with Borrower items of expense
         not reflected in the Servicing Fee and the Check-Cashing Payment, such
         as legal, auditing and other professional services, such expenses will
         be allocated to the extent practical on the basis of actual use or the
         value of services rendered, and otherwise on a basis reasonably related
         to the actual use or the value of services rendered;

                  (d) Borrower's operating expenses will not be paid by ACE or
         any other Affiliate thereof;

                  (e) Borrower will have its own stationery separate from that
         of any other Person;

                  (f) Borrower's books and records will be maintained separately
         from those of any other Person;

                  (g) All financial statements of any Person that are
         consolidated to include Borrower will contain detailed notes clearly
         stating that (A) all of Borrower's assets are owned by Borrower, and
         (B) Borrower is a separate entity with creditors who have received
         security interests in Borrower's assets;

                  (h) Borrower's assets will be maintained in a manner that
         facilitates their identification and segregation from those of any
         other Person;

                  (i) Borrower will strictly observe limited liability company
         formalities in its dealings with ACE and any Affiliate thereof, and
         funds or other assets of Borrower will not be commingled with those of
         any other Person. Borrower shall not maintain joint

                                       30
<PAGE>

         bank accounts or other depository accounts to which any other Person
         has independent access (other than in accordance with the Transaction
         Documents). Borrower is not named, and has not entered into any
         agreement to be named, directly or indirectly, as a direct or
         contingent beneficiary or loss payee on any insurance policy with
         respect to any loss relating to the property of any other Person; and

                  (j) Borrower will not hold itself out to be responsible for
         the debts of any other Person or the decisions or actions respecting
         the daily business and affairs of any other Person. Borrower will
         immediately correct any known misrepresentation with respect to the
         foregoing, and it will not operate or purport to operate as an
         integrated single economic unit with respect to or in its dealing with
         any other Person.

                                  ARTICLE VIII

                          ADMINISTRATION AND COLLECTION

         SECTION 8.01 Check-Casher to Act. Borrower hereby appoints ACE as
Check-Casher to perform the duties with respect to the providing of Borrower's
Cash to SSMs and the administration and allocation of Checks, Cash and
Collections in and among certain Transaction Accounts as contemplated by this
Agreement. Such services shall include:

                  (a) enforcing the Borrower's rights under Approved Vault Bank
         Agreements, Approved Courier Agreements and any other agreements
         necessary to provide cash for the SSMs;

                  (b) making claims under any insurance policies covering the
         Cash;

                  (c) preparing reports with respect to the Vault Collection
         Accounts, Reserve Account and Trust Collection Account activity and
         Cash maintenance;

                  (d) maintaining a list of (A) the location of each SSM
         receiving Cash and (B) each Approved Courier (with a contact person and
         telephone number);

                  (e) maintaining records with respect to the amount of Cash
         located in each SSM at any time;

                  (f) (i) instructing the Collateral Agent on each Business Day
         during the Usage Period, with a copy to the Borrower and the
         Administrative Agent as to (A) the amounts of Cash to be transferred
         from the Trust Collection Account to the Vault Collection Accounts for
         distribution to the applicable Approved Couriers, and (B) the amounts
         of Cash to be transferred from the Vault Collection Accounts to the
         Trust Collection Account and (ii) causing Cash to be transferred from
         the Vault Collection Accounts to the applicable Approved Couriers for
         delivery to the SSMs on each Business Day;

                  (g) subject to Section 9.02(d), instructing the Approved
         Couriers on each Business Day during the Usage Period in writing (with
         a copy to the Borrower and the Collateral Agent and the Administrative
         Agent) as necessary to (i) pick up Cash at an Approved Vault Bank and
         deliver such Cash to an SSM, (ii) withdraw Cash or Checks

                                       31
<PAGE>

         from an SSM and deliver such Cash and Checks to an Approved Vault Bank,
         or (iii) coordinate delivery of voided Checks to Loomis, Fargo & Co.;

                  (h) placing SSMs in the offices of Approved Tax Providers;

                  (i) programming the Check-Casher's point-of-sale check-cashing
         system into each SSM placed in the offices of Approved Tax Providers;

                  (j) if an Electronic Presentment Agreement is not in effect,
         causing the Approved Vault Bank to present to the applicable Approved
         Bank for payment all Checks inserted into the SSMs by Tax Filers in
         accordance with the Check-Casher's policies and procedures;

                  (k) causing all information as may be required by any state or
         federal regulatory agency related to Check-Casher's check cashing
         activities hereunder to be provided on a timely basis;

                  (l) performing its duties and responsibilities with respect to
         the Electronic Presentment Agreement, including, but not limited to:
         (i) identifying Checks valid for cashing in the SSMs by reviewing the
         Check Authorization File (as defined in the Electronic Presentment
         Agreement); (ii) providing an electronic record of each disbursement of
         Cash and the voiding of the corresponding Check by each SSM by
         generating the Check Cleared File (as defined in the Electronic
         Presentment Agreement) for delivery to Household Tax Masters; (iii)
         re-presenting electronically for payment any Checks which are not
         honored upon the first electronic presentment for payment; (iv)
         providing to the Administrative Agent on a weekly basis a report
         listing all Exceptions (as defined in the Electronic Presentment
         Agreement) generated by Household Tax Masters during the weekly period
         ending on the Business Day immediately preceding the date of such
         report; and (v) coordinating physical presentment for payment by the
         Collateral Agent to an Approved Bank of any Check which has not been
         honored after twice being presented for payment electronically; and

                  (m) providing the Collateral Agent with all information,
         notices, reports, other documents and agreements and directions as may
         be necessary to enable the Collateral Agent to perform any procedures
         mandated by, and otherwise comply with the provisions of, all account
         agreements related to the Vault Collection Accounts.

The Check-Casher shall perform, and shall have full power and authority to
perform, subject to the requirements and limitations set forth in this
Agreement, any and all things in connection with such servicing that are
consistent with all Applicable Laws and consistent with customary practices of
Check-Cashers performing similar functions, but in performing its duties
hereunder, the Check-Casher will act on behalf of and for the benefit of
Borrower and the Secured Parties. The Check-Casher will comply with the terms of
each of the Approved Courier Agreements, Approved Vault Bank Agreements, all
agreements with each SSM Lender, all agreements with each Approved Tax Provider,
and all agreements with Approved Banks, entered into in connection with the
transactions contemplated by the Transaction Documents. The Check-Casher
represents, warrants, covenants and agrees that (i) Schedule II shall at all
times reflect a

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<PAGE>

complete and accurate listing of all SSMs and Schedule III shall at all times
reflect a complete and accurate listing of all Excluded SSMs, and (ii) each bank
at which Vault Collection Account is located is an Approved Vault Bank. Prior to
the occurrence of an Event of Default or the Termination Date and subject to
Section 3.01(g), the Collateral Agent shall transfer cash as instructed by the
Check Casher in accordance with Section 8.01(f).

         SECTION 8.02 Insurance. The Check-Casher shall maintain, or cause to be
maintained for Borrower's account, (a) with respect to the Cash, insurance
covering losses resulting from SSM malfunction, theft, fraud, fire, and any
other items as may be reasonably requested by the Administrative Agent, (b)
errors and omissions insurance and (c) fidelity insurance, in each case in the
amounts specified in Schedule III. The Check-Casher shall (x) cause each of the
insurance policies identified above to be issued by reputable insurance
companies with claims paying ratings of at least "A" by Standard & Poor's and
"A2" by Moody's, (y) cause each such insurance policy covering losses with
respect to the Cash resulting from theft to name the Collateral Agent as loss
payee and to provide that it may not be cancelled, amended or terminated without
at least 30 days prior written notice to the Collateral Agent and (z) provide
written notice to the Borrower and the Collateral Agent within one (1) Business
Day of any cancellation, amendment or termination of any errors and omissions
insurance or fidelity insurance policy described in clauses (b) or (c) above.
The Check-Casher shall promptly file and shall diligently pursue any claims with
respect to the Assets with the applicable insurer, and shall deposit all
proceeds received in connection therewith in the Trust Collection Account within
one (1) Business Day of receipt. Upon any failure of the Check-Casher to take
any such actions, the Collateral Agent shall have the right to take any such
actions in its place and stead and shall, at the direction of the Administrative
Agent, take any such actions in its place and stead, and the Check-Casher shall
cooperate with the Collateral Agent in taking any such action. Each of the
Borrower and the Check-Casher covenants and agrees not to amend or terminate any
such insurance policy without the prior written consent of the Administrative
Agent.

         SECTION 8.03 Reporting. (a) The Check-Casher shall deliver to Borrower,
the Administrative Agent, the Liquidity Agent and the Collateral Agent the
following:

                           (i) On each Business Day during the Usage Period, (A)
                  a report substantially in the form of Exhibit 8.03(i) (the
                  "Borrowing Base Report") describing the Cash withdrawal
                  transactions that occurred at SSMs and summary data, including
                  (a) the total number of transactions involving the withdrawal
                  of Cash from the SSMs, (b) the amount of Cash contained in the
                  SSMs, (c) the total Cash dispensed from the SSMs, (d) the
                  aggregate dollar amount of Checks deposited in each SSM, (e)
                  the amount on deposit in the Trust Collection Account, each
                  Vault Collection Account, and the Reserve Account, (B) an
                  electronic file detailing each item of data required to
                  perform the calculations necessary to determine whether a
                  Program Deficiency exists, and (C) records of all Assets and
                  other data necessary to service the Assets, in a format
                  acceptable to the Borrower, the Collateral Agent and the
                  Administrative Agent.

                           (ii) On the fifth day of each calendar month during
                  the Usage Period, or if any such day is not a Business Day,
                  the next Business Day (the "Reporting Date"), a report
                  substantially in the form of Exhibit 8.03(ii) (a "Servicing

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<PAGE>

                  Report"), including a confirmation of all Borrowing Notices
                  for the preceding calendar month; and

                           (iii) Such other information as may be reasonably
                  requested from time to time by Borrower, the Administrative
                  Agent or the Liquidity Agent.

         SECTION 8.04 Books and Records. The Check-Casher shall keep and
maintain, or cause to be kept and maintained, accurate and complete books and
records regarding its duties hereunder.

         SECTION 8.05 Check-Casher Representations. The Check-Casher covenants
and agrees that each delivery of a Borrowing Base Report or Servicing Report
shall be deemed to be a representation and warranty by the Check-Casher that (i)
all information in such Borrowing Base Report or Servicing Report is true and
accurate in all material respects (including, without limitation, that all
Assets characterized as Eligible Assets therein are, in fact, Eligible Assets),
(ii) the Check-Casher is in compliance with all of its agreements and covenants
set forth in the Transaction Documents, (iii) no Check-Casher Event of Default
or Event of Default has occurred and is continuing, and (iv) the representations
and warranties of the Check-Casher contained in the Transaction Documents are
true and correct in all material respects as if made on the date of the
execution of such Borrowing Base Report or Servicing Report.

         SECTION 8.06 Costs of Servicing; Check-Casher's Fee. (a) Costs of
Servicing. All costs of servicing in the manner required by this Article VIII
shall be borne by the Check-Casher. During the Usage Period, the Check-Casher
shall be entitled to receive the servicing fee (the "Servicing Fee") in the
amount described in Section 8.06(b).

                  (b) Servicing Fee; Check-Casher's Fee. The amount of the
         Servicing Fee which the Check-Casher shall be entitled to receive on
         each Settlement Date during the Usage Period and on the Usage Period
         Maturity Date shall be determined by multiplying (i) the average
         Eligible Pool Balance during the prior Monthly Period multiplied by
         (ii) 1.00% multiplied by (iii) 1/12 (pro rated in the case of the Usage
         Period Maturity Date). In addition, the Check-Casher shall be entitled
         to receive the Check-Cashing Payment in accordance Section 3.03(e)(ix).

         SECTION 8.07 Successor Check-Casher; Liquidation. Upon the occurrence
of any Check-Casher Event of Default, the Termination Date, or any Event of
Default, the Collateral Agent shall (i) if so directed by the Administrative
Agent, designate a new Check-Casher for purposes of liquidating the facility and
give notice to the Check-Casher that a new Check-Casher has been designated for
such purposes or (ii) if so directed by the Administrative Agent, give notice to
the Check-Casher that the Collateral Agent will assume all of the rights of the
Check-Casher hereunder for purposes of liquidating the facility in accordance
with Section 9.02(c) and (d). The Collateral Agent shall have no liability with
respect to any obligation which was required to be performed by the Check Casher
or any claim of a third party based on any alleged action or inaction by the
Check-Casher. Upon receipt by the Check-Casher of any notice in accordance with
clause (i) or (ii) above, it shall terminate its activities as Check-Casher
hereunder in a manner that the Collateral Agent believes will facilitate the
transition of the performance of such activities to a new Check-Casher or the
Collateral Agent, as the case may

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<PAGE>

be. All costs and expenses of the Collateral Agent or any successor Check-Casher
in liquidating the facility shall be paid by the prior Check-Casher. Any new
Check-Casher must agree in writing to perform the duties and obligations of the
Check-Casher pursuant to the terms hereof. The Collateral Agent shall provide
each Rating Agency with notice of any change in the Check-Casher.

         The Check-Casher hereby agrees to cooperate with the Collateral Agent
and any successor to the Check-Casher appointed in accordance herewith in
effecting the termination and transfer of the responsibilities and rights of the
Check-Casher hereunder to the Collateral Agent or any successor to the
Check-Casher, including, without limitation, the transfer to the Collateral
Agent or to the successor to the Check-Casher, as applicable, for administration
by it of all Cash and Checks which shall at the time be held by the Check-Casher
or thereafter received with respect to the Assets. In addition, upon the
appointment of any successor Check-Casher or the assumption by the Collateral
Agent of the Check-Casher's rights and responsibilities hereunder, the
Check-Casher shall obtain and/or assign to the Collateral Agent or such
successor any license or approval required for the use of any program used by
the Check-Casher in the servicing of the Assets. The Check-Casher hereby
designates the Collateral Agent or any successor to the Check-Casher as its
agent and attorney-in-fact to execute transfers of financing statements and any
other filings or instruments which may be necessary or advisable to effect such
transfer of the Check-Casher's responsibilities and rights hereunder.

         SECTION 8.08 Bailee for Collateral Agent. The Check-Casher hereby
acknowledges that Borrower has granted to the Collateral Agent, for the benefit
of the Secured Parties, a security interest in all of the assets of Borrower. If
the Check-Casher has, or is deemed to have, possession of any Assets (whether in
the form of cash or otherwise), the Check-Casher agrees that it shall hold all
such Assets as custodian and bailee on behalf of the Collateral Agent for the
purposes of perfecting the security interest of the Secured Parties in such Cash
and other Assets.

                                   ARTICLE IX

                      EVENTS OF DEFAULT; TERMINATION EVENTS

         SECTION 9.01 Events of Default. The following events shall each be an
"Event of Default" hereunder:

                  (a) Borrower shall fail to make any payment or deposit to be
         made by it hereunder when due or shall fail to pay any payment of
         principal or interest under the Note when due; or

                  (b) Any representation or warranty made or deemed to be made
         by Borrower (or any of its officers) under or in connection with this
         Agreement or other information or report delivered pursuant hereto
         shall prove to have been false or incorrect in any material respect
         when made and such condition shall continue unremedied for a period of
         thirty (30) days after (i) written notice thereof by the Administrative
         Agent or (ii) Borrower has actual knowledge that such representation or
         warranty is false or incorrect; or

                                       35
<PAGE>

                  (c) Borrower shall fail to perform or observe in any material
         respect any other term, covenant or agreement contained in this
         Agreement or any of the other Transaction Documents on its part to be
         performed or observed and any such failure shall remain unremedied for
         thirty (30) days after (i) written notice thereof shall have been given
         by the Administrative Agent to Borrower or (ii) Borrower has actual
         knowledge of such failure to perform or observe any covenant hereunder;
         or

                  (d) A default shall have occurred and be continuing under any
         instrument or agreement evidencing, securing or providing for the
         issuance of indebtedness for borrowed money of, or guaranteed by,
         Borrower or ACE (provided that, in the case of ACE, the principal of
         such indebtedness exceeds $250,000), which default is a default in the
         payment of any amount due thereunder (after giving effect to any
         periods of grace or right to cure) or which default if unremedied,
         uncured, or unwaived (with or without the passage of time or the giving
         of notice or both) would permit acceleration of the maturity of such
         indebtedness and such default shall have continued unremedied, uncured
         or unwaived for a period long enough to permit such acceleration; or

                  (e) An Event of Bankruptcy shall have occurred and remain
         continuing with respect to the Borrower or ACE ; or

                  (f) Borrower or the Check-Casher shall fail to maintain
         insurance in accordance with the terms of the Insurance Schedule and
         any such failure shall remain unremedied for five (5) Business Days or
         Borrower or Check-Casher shall amend or terminate any required
         theft/loss insurance with respect to the Cash, Checks or the SSMs
         without the prior written consent of the Administrative Agent; or

                  (g) (i) Any litigation (including, without limitation,
         derivative actions), arbitration proceedings or governmental
         proceedings not disclosed in writing by Borrower to the Administrative
         Agent prior to the date of execution and delivery of this Agreement is
         pending against Borrower, or for an amount greater than $250,000
         against ACE or (ii) any material development not so disclosed has
         occurred in any litigation (including, without limitation, derivative
         actions), arbitration proceedings or governmental proceedings so
         disclosed, which, in the case of clause (i) or (ii), in the reasonable
         opinion of the Administrative Agent, has a reasonable likelihood of
         having a Material Adverse Effect; or

                  (h) There shall exist any event or occurrence that would
         reasonably be expected to cause a Material Adverse Effect; or

                  (i) The Borrower is subject to a Change in Control (which has
         not otherwise been approved in writing by the Administrative Agent); or

                  (j) The IRS shall file notice of a lien pursuant to Section
         6323 of the Internal Revenue Code with regard to any of the assets of
         Borrower and such lien shall not have been released within five (5)
         Business Days, or the Pension Benefit Guaranty Corporation shall, or
         shall indicate its intention to, file notice of a lien pursuant to
         Section 4068 of the ERISA with regard to any of the assets of Borrower
         or any of its Affiliates; or

                                       36
<PAGE>

                  (k) A Check-Casher Event of Default occurs and is continuing;
         or

                  (l) This Agreement shall for any reason (other than pursuant
         to the terms hereof) cease to create, or there shall for any reason
         cease to be, a valid and enforceable perfected first priority security
         interest in all of the assets of the Borrower (including, without
         limitation, all Assets) free and clear of any other Lien; or

                  (m) Borrower shall for any reason cease to have a valid and
         enforceable ownership interest in the Assets; or

                  (n) A Program Deficiency occurs and continues unremedied for
         two Business Days; or

                  (o) The Defaulted Amount exceeds $250,000; or

                  (p) The Borrower shall fail to maintain, at any time during
         the Usage Period, a tangible net worth (calculated in accordance with
         GAAP) of at least $1,000,000; or

                  (q) The Denied Checks Amount exceeds $50,000; or

                  (r) 95% of Collections during any Monthly Period do not flow
         directly through a Vault Collection Account or the Trust Collection
         Account or 100% of Collections during any Monthly Period do not flow
         through a Vault Collection Account or the Trust Collection Account and
         such failure is not cured within one Business Day of discovery of such
         failure by the Borrower or the Check-Casher.

         SECTION 9.02 Remedies.

                  (a) Optional Acceleration. Upon the occurrence of an Event of
         Default (other than an Event of Default described in Section 9.01(e)),
         the Administrative Agent may declare that the Termination Date has
         occurred and the unpaid principal amount of the Note to be due and
         payable immediately, by a notice in writing to Borrower, and upon any
         such declaration, the Termination Date shall occur and such principal
         amount shall be immediately due and payable, together with all accrued
         and unpaid interest thereon, without presentment, demand, protest or
         other notice of any kind, all of which are hereby waived by Borrower.

                  (b) Automatic Acceleration. Upon the occurrence of an Event of
         Default described in Section 9.01(e), the Termination Date shall occur
         automatically and the unpaid principal amount of the Note shall
         automatically become due and payable, together with all accrued and
         unpaid interest thereon, without presentment, demand, protest or notice
         of any kind, all of which are hereby waived by Borrower.

                  (c) Additional Remedies. Upon any acceleration of the Note
         pursuant to this Section 9.02, no Borrowings thereafter will be made,
         and the Collateral Agent and other Secured Parties shall have, in
         addition to all other rights and remedies under this Agreement or
         otherwise, all other rights and remedies provided under the UCC of each
         applicable jurisdiction and other Applicable Laws to a secured party,
         which rights shall

                                       37
<PAGE>

         be cumulative. Upon the acceleration of the Note, the Collateral Agent
         shall (unless otherwise instructed by the Majority Liquidity Providers)
         take all lawful action at ACE's expense (for reasonable costs and
         expenses) to exercise any and all rights, remedies, powers and
         privileges lawfully available to the Collateral Agent including,
         without limitation, the transmission of notices of default and the
         institution of legal or administrative actions or proceedings to compel
         or secure performance by the Borrower or the Check-Casher and to
         exercise any other remedies available to a secured party. If an Event
         of Default shall have occurred and be continuing, the Collateral Agent
         shall (at the direction of the Administrative Agent) direct Borrower to
         exercise all rights, remedies, powers, privileges and claims of
         Borrower against the Check-Casher or any other party under or in
         connection with the Transaction Documents, including the right or power
         to take any action to compel performance or observance by the
         Check-Casher or such other party of its obligations to Borrower, and
         the right to give any consent, request, notice, direction, approval,
         extension or waiver in respect of any Transaction Document. If Borrower
         shall have failed, within five (5) Business Days of receiving the
         directions of the Collateral Agent, to satisfactorily undertake such
         directed actions, the Collateral Agent may take such previously
         directed actions on behalf of Borrower and the Secured Parties.

                  (d) Collateral Agent to Instruct. Upon the occurrence of an
         Event of Default, Termination Event or Termination Date, the Collateral
         Agent shall be the sole party authorized to instruct the Approved
         Couriers and each Approved Vault Bank as to any action to be taken with
         respect to Cash, Checks and Collections. Without limiting any other
         provision of this Section 9.02, upon the acceleration of the Notes
         pursuant to this Section 9.02 or upon the occurrence of a Termination
         Event, the Collateral Agent shall (unless otherwise instructed by the
         Majority Liquidity Providers) give notice to the Check-Casher, each
         Approved Vault Bank and each Approved Courier to cease distributing
         Cash and to arrange for the return within two (2) Business Days of all
         of the Cash and Checks in the possession of such Approved Vault Bank or
         Approved Courier or any SSM serviced by such Approved Courier (all such
         Cash to be deposited in the Trust Collection Account).

                                    ARTICLE X

                   THE ADMINISTRATIVE AGENT; COLLATERAL AGENT

         SECTION 10.01 Authorization and Action. Pursuant to agreements entered
into with the Administrative Agent, Lender has appointed and authorized the
Administrative Agent to take such action as agent on its behalf and to exercise
such powers under this Agreement as are delegated to the Administrative Agent by
the terms hereof, together with such powers as are reasonably incidental
thereto.

         SECTION 10.02 Administrative Agent's and Collateral Agent's Reliance,
Etc. The Administrative Agent, the Collateral Agent and their directors,
officers, agents or employees shall not be liable for any action taken or
omitted to be taken by it or them under or in connection with the Transaction
Documents (including, without limitation, the servicing, administering or
collecting of Assets as Check-Casher pursuant to Section 8.01), except for its
or their own gross

                                       38
<PAGE>

negligence or willful misconduct. Without limiting the generality of the
foregoing, each of the Administrative Agent and the Collateral Agent: (a) may
consult with legal counsel (including counsel for Borrower), independent
certified public accountants and other experts selected by it and shall not be
liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts; (b) makes no
warranty or representation to any Secured Party or any other holder of any
interest in Assets and shall not be responsible to any Secured Party or any such
other holder for any statements, warranties or representations made in or in
connection with any Transaction Document; (c) shall not have any duty to
ascertain or to inquire as to the performance or observance of any of the terms,
covenants or conditions of any Transaction Document on the part of Borrower or
the Check-Casher or to inspect the property (including the books and records) of
Borrower or the Check-Casher; (d) shall not be responsible to any Secured Party
or any other holder of any interest in the Assets for the due execution,
legality, validity, enforceability, genuineness, sufficiency or value of any
Transaction Document; and (e) shall incur no liability under or in respect of
this Agreement by acting upon any notice (including notice by telephone where
permitted herein), consent, certificate or other instrument or writing (which
may be by facsimile or telex) in good faith believed by it to be genuine and
signed or sent by the proper party or parties.

         SECTION 10.03 The Liquidity Agent, the Collateral Agent, the
Administrative Agent and Affiliates. The Liquidity Agent, the Collateral Agent,
the Administrative Agent and any of their respective Affiliates may generally
engage in any kind of business with Borrower or the Check-Casher, any of their
respective Affiliates and any Person who may do business with or own securities
of Borrower or the Check-Casher or any of their respective Affiliates, all as if
they were not the Administrative Agent, Collateral Agent and the Liquidity
Agent, respectively, and without any duty to account therefor to any Secured
Party or any other holder of an interest in the Assets.

         SECTION 10.04 Appointment and Powers of Collateral Agent. The Secured
Parties hereby appoint the Collateral Agent as their agent hereunder and hereby
authorize the Collateral Agent to take such action on their behalf and to
exercise such rights, remedies, powers and privileges hereunder as are
specifically authorized to be exercised by the Collateral Agent by the terms
hereof, together with such rights, remedies, powers and privileges as are
reasonably incidental thereto. The parties hereto agree that the Collateral
Agent shall not be required to exercise any discretion or take any action or
refrain from taking any action in its capacity as Collateral Agent, but shall
only be required to act or refrain from acting in such capacity (and shall be
fully protected in so acting or refraining from acting) upon the instruction of
the Majority Liquidity Providers. The Collateral Agent shall be entitled to
retain experts and to act in reliance upon the advice of such experts concerning
all matters pertaining to the agencies hereby created and its duties hereunder,
and shall not be liable for any action taken or omitted to be taken by it in
good faith in accordance with the advice of such experts selected by it. The
relationship between the Collateral Agent and each of the Secured Parties is
that of Collateral Agent and principal only, and nothing herein shall be deemed
to constitute the Collateral Agent a trustee for any of the Secured Parties or
impose on the Collateral Agent any obligations other than those for which
express provision is made herein.

         If the Collateral Agent receives unclear or conflicting instructions,
it shall be entitled to refrain from taking action until clear or
non-conflicting instructions are received, but shall inform

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<PAGE>

the instructing party or parties promptly of its decision to refrain from taking
such action. Except as required by the specific terms of this Agreement, the
Collateral Agent shall have no duty to exercise any right, power, remedy or
privilege granted to it hereby, or to take any affirmative action hereunder,
unless directed to do so by the Majority Liquidity Providers (and shall be fully
protected in acting or refraining from acting pursuant to such directions which
shall be binding on the Secured Parties), and shall not, without the prior
approval of the Majority Liquidity Providers, waive any default on the part of
Borrower or the Check-Casher. Notwithstanding anything herein to the contrary,
the Collateral Agent shall not be required to take any action (i) which the
Collateral Agent has determined will expose the Collateral Agent to personal or
financial liability, unless indemnified to its satisfaction, or (ii) which is
contrary to this Agreement, the other Transaction Documents, or Applicable Law.

         The Collateral Agent shall be entitled to rely on any communication,
instrument, paper or other document reasonably believed by it to be genuine and
correct and to have been given, signed or sent by the proper Person or Persons.
The Collateral Agent shall be entitled to assume that no Event of Default shall
have occurred and be continuing, unless a Responsible Officer of the Collateral
Agent has actual knowledge thereof or the Collateral Agent has received written
notice thereof from the Secured Parties.

         Each of the Borrower and ACE hereby authorizes the Collateral Agent to
file one or more financing or continuation statements, and amendments thereto,
relative to all or any part of the collateral in which an interest is granted,
or is purported to be granted, hereby, without the signature of the Borrower or
ACE, as the case may be, where permitted by law. The Collateral Agent shall, at
the direction of the Administrative Agent, file any such financing statements or
amendments thereto as the Administrative Agent may provide to the Collateral
Agent; provided that absent any such instruction, the Collateral Agent shall
have no obligation to file any such financing statements or amendments. In
addition, Collateral Agent shall, at the direction of Borrower, file any
continuation statements provided to it by Borrower, provided that absent any
such instruction and the provision of such continuation statements, the
Collateral Agent shall prepare and file all continuation statements necessary to
maintain a first priority perfected security interest in all of the assets of
Borrower which may be perfected by filing a financing statement under the UCC.

         SECTION 10.05 Collateral Agent and Employees of the Collateral Agent.

                  (a) No provision of this Agreement shall require the
         Collateral Agent to expend or risk its own funds or otherwise incur any
         financial or other liability in the performance of any duties hereunder
         or in the exercise of any rights and powers hereunder.

                  (b) The Collateral Agent shall have the right at any time to
         seek instructions from any court of competent jurisdiction. The
         Collateral Agent may rely on the advice of counsel and shall be held
         harmless for actions taken in reliance thereon.

                  (c) The Collateral Agent makes no representation as to, and
         shall have no responsibility for, the correctness of any statement
         contained in, or the validity or sufficiency of, this Agreement or any
         documents or instruments referred to in this Agreement or the
         sufficiency or effectiveness of any collateral assigned by this

                                       40
<PAGE>

         Agreement or as to or for the validity or collectibility of any
         obligation contemplated by this Agreement. The Collateral Agent shall
         not be accountable for the use or application by any person of
         disbursements properly made by the Collateral Agent in conformity with
         the provisions of this Agreement.

                  (d) The Collateral Agent may exercise any of its duties
         hereunder by or through Collateral Agents or employees. The possession
         of the Collateral by such Collateral Agents or employees shall be
         deemed to be the possession of the Collateral Agent.

                  (e) Each Liquidity Provider hereby agrees to indemnify and
         hold harmless, in accordance with its pro rata percentage of the sum of
         the aggregate commitments under the Liquidity Agreement, the Collateral
         Agent (to the extent not indemnified or reimbursed by the Check Casher
         or the Borrower) from and against any and all out-of-pocket costs and
         expenses (including reasonable fees and expenses of counsel and other
         experts) incurred or suffered by the Collateral Agent in its capacity
         as Collateral Agent hereunder (or as the account holder for any of the
         Vault Collection Accounts) as a result of any action taken or omitted
         to be taken by the Collateral Agent in such capacity or otherwise
         incurred or suffered by the Collateral Agent in such capacity to the
         extent not reimbursed by the Check Casher or the Borrower or by
         application of the Collateral; provided that no Liquidity Provider
         shall be liable for any portion of any such costs or expenses resulting
         from or attributable to gross negligence or willful misconduct on the
         part of the Collateral Agent. The obligations of each Liquidity
         Provider under this paragraph shall survive the termination of the
         Liquidity Agreement.

                  (f) The provisions of this Section shall survive the
         termination of this Agreement and the resignation of the Collateral
         Agent hereunder.

         SECTION 10.06 Successor Collateral Agent. The Collateral Agent acting
hereunder at any time may resign by an instrument in writing addressed and
delivered, 60 days prior to the effectiveness of such resignation, to each of
the Liquidity Providers, the Administrative Agent, the Liquidity Agent, the
Lender, the Borrower and the Check-Casher, and may be removed at any time with
cause by an instrument in writing duly executed by or on behalf of the Majority
Liquidity Providers. Subject to the provisions hereof, the Majority Liquidity
Providers shall also have the right to appoint a successor to the Collateral
Agent upon any such resignation or removal, by an instrument of substitution
complying with the requirements of Applicable Law, or, in the absence of any
such requirements, without any formality other than appointment and designation
in writing. Upon the making and acceptance of such appointment, the execution
and delivery by such successor Collateral Agent of a ratifying instrument
pursuant to which such successor Collateral Agent agrees to assume the duties
and obligations imposed on the Collateral Agent by the terms of this Agreement,
and the delivery to such successor Collateral Agent of the collateral, and
documents and instruments then held by the retiring Collateral Agent, such
successor Collateral Agent shall thereupon succeed to and become vested with all
the estate, rights, powers, remedies, privileges, immunities, indemnities,
duties and obligations hereby granted to or conferred or imposed upon the
retiring Collateral Agent, and one such appointment and designation shall not
exhaust the right to appoint and designate further successor Collateral Agents
hereunder. No removal or resignation of the Collateral Agent shall be effective
unless and until a successor Collateral Agent has been duly appointed, and the
appointment of such

                                       41
<PAGE>

successor Collateral Agent has been accepted by such successor Collateral Agent.
No Collateral Agent shall be discharged from its duties or obligations hereunder
until the collateral and documents and instruments then held by such retiring
Collateral Agent shall have been transferred or delivered to the successor
Collateral Agent, until such retiring Collateral Agent shall have executed and
delivered to the successor Collateral Agent appropriate instruments substituting
such successor Collateral Agent for purposes of this Agreement and assigning the
retiring Collateral Agent's interest in the collateral, to the successor
Collateral Agent. If no successor Collateral Agent shall be appointed, as
aforesaid, or, if appointed, shall not have accepted its appointment, within 30
days after notice of resignation or removal of the retiring Collateral Agent,
then, subject to the provisions hereof, the retiring Collateral Agent may
appoint a successor Collateral Agent with the written consent of the Liquidity
Agent or petition any court of competent jurisdiction for the appointment of a
successor collateral agent. Each such successor Collateral Agent shall provide
the Check-Casher, the Borrower, ACE, the Administrative Agent, the Lender, each
Liquidity Provider and the Liquidity Agent with its address and telephone
numbers. Notwithstanding the resignation or removal of any Collateral Agent
hereunder, the provisions of this Article X shall continue to inure to the
benefit of such retiring Collateral Agent in respect of any action taken or
omitted to be taken by such retiring Collateral Agent in its capacity as such
while it was Collateral Agent under this Agreement. The Administrative Agent
shall provide prompt notice to each Rating Agency, the Check-Casher and the
Borrower of the appointment of a successor Collateral Agent.

                                   ARTICLE XI

                         ASSIGNMENT OF LENDER'S INTEREST

         SECTION 11.01 Restrictions on Assignments. Neither Borrower nor
Check-Casher may assign its rights, or delegate its duties hereunder or any
interest herein, without the prior written consent of the Administrative Agent.
Lender may assign its rights hereunder or its Commitment or the Note to any
Person without the consent of Borrower; provided, however, that if the Lender
has assigned more than 50% of its Commitment hereunder to any Person other than
its related Liquidity Providers, then the Borrower may prepay the facility in
whole pursuant to Section 2.01 and terminate this Agreement and shall not be
required to pay any Prepayment Fee; and provided, further, that prior to the
occurrence of a Termination Event, the Lender may not without the prior written
consent of the Borrower assign its Commitment hereunder to an entity which does
not then either have a short-term unsecured debt rating or issue commercial
paper with a short-term unsecured debt rating, in each case, by one or more
nationally recognized rating agencies, equivalent to the rating of the Lender's
commercial paper notes.

         SECTION 11.02 Rights of Assignee. Upon the assignment by Lender in
accordance with this Article XI, the assignee receiving such assignment shall
have all of the rights of Lender with respect to the Transaction Documents and
the Assets (or such portion thereof as has been assigned).

         SECTION 11.03 Evidence of Assignment. Any assignment of the Commitment,
the Note and the Assets (or any portion thereof) to any Person may be evidenced
by such instruments or documents as may be satisfactory to the Lender.

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<PAGE>

                                   ARTICLE XII

                                 INDEMNIFICATION

         SECTION 12.01 Indemnities by Borrower.

                  (a) General Indemnity. Without limiting any other rights which
         any such Person may have hereunder or under Applicable Law, the
         Borrower hereby agrees to indemnify each of the Administrative Agent,
         the Lender, the Liquidity Providers, the Liquidity Agent, the
         Collateral Agent, each of their respective Affiliates, and all
         successors and permitted transferees, participants and assigns and all
         officers, directors, shareholders, controlling persons, employees and
         agents of any of the foregoing (each an "Indemnified Party"), forthwith
         on demand, from and against any and all damages, losses, claims,
         liabilities and related costs and expenses, including reasonable
         attorneys' fees and disbursements (all of the foregoing being
         collectively referred to as "Indemnified Amounts") awarded against or
         incurred by any of them as a result of a claim arising out of or
         relating to the Transaction Documents or the transactions contemplated
         thereby, excluding, however, Indemnified Amounts to the extent
         determined by a court of competent jurisdiction or in binding
         arbitration to have resulted from gross negligence or willful
         misconduct on the part of such Indemnified Party. Without limiting the
         foregoing, Borrower shall indemnify each Indemnified Party for
         Indemnified Amounts arising out of or relating to:

                           (i) the transfer by Borrower of any interest in any
                  of its assets other than the grant of a security interest
                  granted to the Collateral Agent and the other Secured Parties,
                  pursuant to Section 1.03 (or as otherwise permitted
                  hereunder);

                           (ii) any representation or warranty made by Borrower
                  (or any of its officers or Affiliates) under or in connection
                  with any Transaction Document, any information or report
                  delivered by or on behalf of Borrower pursuant hereto, which
                  shall have been false, incorrect or misleading in any material
                  respect when made or deemed made (unless so disclosed at the
                  time of delivery);

                           (iii) the failure by Borrower or the Check-Casher to
                  comply with any Applicable Law, including, without limitation,
                  the failure to obtain and maintain in full force and effect
                  any licenses required by any Governmental Authority or the
                  failure to comply with all required disclosure and other
                  regulatory requirements, in each case in connection with the
                  Borrower's and ACE's activities contemplated by the
                  Transaction Documents or the terms of any of the Transaction
                  Documents;

                           (iv) the failure to vest and maintain vested in the
                  Collateral Agent a first priority perfected security interest
                  in all of the assets of Borrower free and clear of any Lien,
                  other than a Lien arising solely as a result of an act of the
                  Secured Parties, whether existing at the time of any Borrowing
                  or at any time thereafter;

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<PAGE>

                           (v) the failure to file, or any delay in filing,
                  financing statements or other similar instruments or documents
                  under the UCC of any applicable jurisdiction or other
                  Applicable Laws with respect to the assets of Borrower,
                  whether at the time of any Borrowing or at any time
                  thereafter;

                           (vi) any failure of Borrower to perform its duties or
                  obligations in accordance with the provisions of Article VII
                  or otherwise hereunder or under any other Transaction
                  Document;

                           (vii) any failure by Borrower to file any tax returns
                  or pay any taxes when due;

                           (viii) any tax or governmental fee, fine or charge
                  (but not including U.S. federal income taxes upon or measured
                  by net income or state or local taxes upon or measured by net
                  income imposed on the Indemnified Parties by the jurisdiction
                  in which such Indemnified Party is organized or is otherwise
                  taxable without regard to their participation in the
                  transactions contemplated by the Transaction Documents), all
                  interest and penalties (including, but not limited to,
                  penalties for failure to file returns or pay amounts due)
                  thereon or with respect thereto, and all out-of-pocket costs
                  and expenses, including, but not limited to (i) the reasonable
                  fees and expenses of counsel in defending against the same,
                  which may arise by reason of the Loans or any interest in the
                  assets of Borrower, (ii) any fees, fines or charges which may
                  be imposed as a result of any failure to properly disclose any
                  fees charged to any consumer in an SSM transaction and (iii)
                  the reasonable fees and expenses incurred to file any returns
                  required to be filed to report the same; and

                           (ix) any and all out-of-pocket costs and expenses
                  (including reasonable fees and expenses of counsel and other
                  experts) incurred or suffered by the Collateral Agent in its
                  capacity as the account holder for any of the Vault Collection
                  Accounts as a result of any action taken or omitted to be
                  taken by the Collateral Agent in such capacity or otherwise
                  incurred or suffered by the Collateral Agent in such capacity,
                  including, without limitation, all cost and expense associated
                  with the establishment and maintenance of the Vault Collection
                  Accounts, to the extent not reimbursed by application of the
                  Collateral; provided that the Borrower shall not be liable for
                  any portion of any such costs or expenses resulting from or
                  attributable to gross negligence or willful misconduct on the
                  part of the Collateral Agent.

                  (b) Contest of Tax Claim; After-Tax Basis. If any Indemnified
         Party shall have notice of any attempt to impose or collect any tax or
         governmental fee or charge for which indemnification will be sought
         from Borrower under Section 12.01(a)(viii), such Indemnified Party
         shall give prompt and timely notice of such attempt to Borrower and
         Borrower shall have the right, at its expense, to participate in any
         proceedings resisting or objecting to the imposition or collection of
         any such tax, governmental fee or charge. Failure or delay in giving
         such notification shall not constitute a waiver of such Indemnified
         Party's right to such compensation; provided, that such Indemnified
         Party

                                       44
<PAGE>

         shall not be entitled to compensation under this Section 12.01 for any
         Indemnified Amounts incurred or suffered with respect to any date
         unless such Indemnified Party shall have notified the Borrower not more
         than 90 days after the applicable Indemnified Party shall have notice
         of any attempt to impose or collect any tax or governmental fee or
         charge for which indemnification will be sought from Borrower under
         Section 12.01(a)(vii). Indemnification hereunder shall be in an amount
         necessary to make the Indemnified Party whole after taking into account
         any tax consequences to the Indemnified Party of the payment of any of
         the aforesaid taxes and the receipt of the indemnity provided hereunder
         or of any refund of any such tax previously indemnified hereunder,
         including the effect of such tax or refund on the amount of tax
         measured by income or profits which is or was payable by the
         Indemnified Party.

                  (c) Contribution. If for any reason the indemnification
         provided above in this Section 12.01 is unavailable to an Indemnified
         Party or is insufficient to hold an Indemnified Party harmless, then
         Borrower shall contribute to the amount paid or payable by such
         Indemnified Party as a result of such loss, claim, damage or liability
         in such proportion as is appropriate to reflect not only the relative
         benefits received by such Indemnified Party on the one hand and
         Borrower on the other hand but also the relative fault of such
         Indemnified Party as well as any other relevant equitable
         considerations.

                  (d) Available Funds. Payments by Borrower under this Section
         12.01 shall be paid solely to the extent funds are available pursuant
         to the priorities set forth in Section 3.03.

         SECTION 12.02 Indemnities by Check-Casher.

                  (a) Indemnity. Without limiting any other rights which the
         Borrower or any Indemnified Party may have hereunder or under
         Applicable Law, the Check-Casher hereby agrees to indemnify the
         Borrower and the Indemnified Parties, forthwith on demand, from and
         against any and all Indemnified Amounts awarded against or incurred by
         any of them to the extent that such Indemnified Amounts are a result of
         a claim arising out of or relating to (i) the Check-Casher's
         performance of, or failure to perform, any of its duties or obligations
         under or in connection with any Transaction Documents, (ii) any
         representation or warranty made by the Check-Casher under or in
         connection with any Transaction Document, any Borrowing Base Report or
         any Servicing Report or any other information or request delivered by
         or on behalf of Check-Casher pursuant hereto, which shall have been
         false, incorrect or misleading in any material respect when made or
         deemed made (unless so disclosed at the time of delivery), (iii) the
         co-mingling of any Cash or other Assets with any of the assets of the
         Check-Casher, (iv) any failure by the Check-Casher to pay any taxes
         when due, (v) any failure of Check-Casher to comply with any Applicable
         Law, including, without limitation, the failure to obtain and maintain
         in full force and effect any licenses required by any Governmental
         Authority or the failure to comply with all required disclosure and
         other regulatory requirements, in each case in connection with the
         Borrower's and ACE's activities contemplated by the Transaction
         Documents or the terms of any of the Transaction Documents or (vi) any
         theft, fraud, stealing or misappropriation of Assets by the employees,
         officers, directors or representatives of the Check-Casher, excluding,
         however, Indemnified Losses to the

                                       45
<PAGE>

         extent determined by a court of competent jurisdiction or in binding
         arbitration to have resulted from gross negligence or willful
         misconduct on the part of such Indemnified Party or the Borrower.

                  (b) Contribution. If for any reason the indemnification
         provided above in this Section 12.02 is unavailable to the Borrower or
         an Indemnified Party or is insufficient to hold the Borrower or an
         Indemnified Party harmless, then the Check-Casher shall contribute to
         the amount paid by the Borrower or such Indemnified Party as a result
         of such loss, claim, damage or liability in such proportion as is
         appropriate to reflect not only the relative benefits received by the
         Borrower or such Indemnified Party on the one hand and the Check-Casher
         on the other hand, but also the relative fault of such Indemnified
         Party (if any) and the Borrower and any other relevant equitable
         considerations.

         SECTION 12.03 Indemnities by ACE.

                  (a) Indemnity. Without limiting any other rights which the
         Borrower or any Indemnified Party may have hereunder or under
         Applicable Law, ACE hereby agrees to indemnify the Borrower and the
         Indemnified Parties, forthwith on demand, from and against any and all
         Indemnified Amounts awarded against or incurred by any of them to the
         extent that such Indemnified Amounts are a result of a claim arising
         out of or relating to (i) any tax or governmental fee, fine or charge
         (but not including U.S. federal income taxes upon or measured by net
         income or state or local taxes upon or measured by net income imposed
         on the Borrower or the Indemnified Parties by the jurisdiction in which
         the Borrower or such Indemnified Party is organized or is otherwise
         taxable without regard to their participation in the transactions
         contemplated by the Transaction Documents), all interest and penalties
         (including, but not limited to, penalties for failure to file returns
         or pay amounts due) thereon or with respect thereto, and all
         out-of-pocket costs and expenses, including, but not limited to (x) the
         reasonable fees and expenses of counsel in defending against the same,
         which may arise by reason of or relating to the Transaction Documents
         and (y) the reasonable fees and expenses incurred to file any returns
         required to be filed to report the same, (ii) ACE's performance of, or
         failure to perform, any of its duties or obligations under or in
         connection with any Transaction Documents, (iii) any representation or
         warranty made by ACE under or in connection with any Transaction
         Document or any other information or request delivered by or on behalf
         of ACE pursuant hereto, which shall have been false, incorrect or
         misleading in any material respect when made or deemed made (unless so
         disclosed at the time of delivery), (iv) the co-mingling of any Cash or
         other Assets with any of the assets of the ACE, (v) any failure of the
         Borrower or ACE to comply with any Applicable Law, including, without
         limitation, the failure to obtain and maintain in full force and effect
         any licenses required by any Governmental Authority or the failure to
         comply with all required disclosure and other regulatory requirements,
         in each case in connection with the Borrower's and ACE's activities
         contemplated by the Transaction Documents or the terms of any of the
         Transaction Documents or (vi) any theft, fraud, stealing or
         misappropriation of Assets by the employees, officers, directors or
         representatives of ACE, excluding, however, Indemnified Losses to the
         extent determined by a court of competent jurisdiction or in binding
         arbitration to have resulted from gross negligence or

                                       46
<PAGE>

         willful misconduct on the part of such Indemnified Party or the
         Borrower. ACE further agrees to indemnify and hold harmless the
         Collateral Agent (to the extent not indemnified or reimbursed by the
         Borrower) from and against any and all out-of-pocket costs and expenses
         (including reasonable fees and expenses of counsel and other experts)
         incurred or suffered by the Collateral Agent in its capacity as the
         account holder for any of the Vault Collection Accounts as a result of
         any action taken or omitted to be taken by the Collateral Agent in such
         capacity or otherwise incurred or suffered by the Collateral Agent in
         such capacity, including, without limitation, all cost and expense
         associated with the establishment and maintenance of the Vault
         Collection Accounts, to the extent not reimbursed by the Borrower or by
         application of the Collateral; provided that ACE shall not be liable
         for any portion of any such costs or expenses resulting from or
         attributable to gross negligence or willful misconduct on the part of
         the Collateral Agent.

                  (b) Contest of Tax Claim; After-Tax Basis. If the Borrower or
         any Indemnified Party shall have notice of any attempt to impose or
         collect any tax or governmental fee or charge for which indemnification
         will be sought from ACE under Section 12.03(a)(i), the Borrower or such
         Indemnified Party shall give prompt and timely notice of such attempt
         to ACE and ACE shall have the right, at its expense, to participate in
         any proceedings resisting or objecting to the imposition or collection
         of any such tax, governmental fee or charge. Failure or delay in giving
         such notification shall not constitute a waiver of such party's right
         to such compensation; provided, that such party shall not be entitled
         to compensation under this Section 12.03 for any Indemnified Amounts
         incurred or suffered with respect to any date unless such party shall
         have notified ACE not more than 90 days after the applicable party
         shall have notice of any attempt to impose or collect any tax or
         governmental fee or charge. Indemnification hereunder shall be in an
         amount necessary to make the Borrower or Indemnified Party whole after
         taking into account any tax consequences to such party of the payment
         of any of the aforesaid taxes and the receipt of the indemnity provided
         hereunder or of any refund of any such tax previously indemnified
         hereunder, including the effect of such tax or refund on the amount of
         tax measured by income or profits which is or was payable by such
         party.

                  (c) Contribution. If for any reason the indemnification
         provided above in this Section 12.03 is unavailable to the Borrower or
         an Indemnified Party or is insufficient to hold the Borrower or an
         Indemnified Party harmless, then ACE shall contribute to the amount
         paid or payable by the Borrower or such Indemnified Party as a result
         of such loss, claim, damage or liability in such proportion as is
         appropriate to reflect not only the relative benefits received the
         Borrower or by such Indemnified Party on the one hand and ACE on the
         other hand but also the relative fault of the Borrower or such
         Indemnified Party as well as any other relevant equitable
         considerations.

                                  ARTICLE XIII

                                  MISCELLANEOUS

         SECTION 13.01 Amendments, Etc. No amendment or waiver of any provision
of this Agreement nor consent to any departure by Borrower or Check-Casher
therefrom shall in any event be effective unless the same shall be in writing
and signed by each of the parties hereto.

                                       47
<PAGE>

The parties acknowledge that, before entering into such an amendment or granting
such a waiver or consent, Lender may also be required to obtain the approval of
some or all of the Liquidity Providers or to obtain confirmation from the Rating
Agencies that such amendment, waiver or consent will not result in a withdrawal
or reduction of the ratings of the Commercial Paper Notes.

         SECTION 13.02 Notices, Etc. All notices and other communications
provided for hereunder shall, unless otherwise stated herein, be in writing
(including facsimile communication) and shall be personally delivered or sent by
express mail or by overnight courier service, or by courier, or by certified
mail, postage prepaid, or by facsimile, to the intended party at the address or
facsimile number of such party set forth under its name on the signature pages
hereof or at such other address or facsimile number as shall be designated by
such party in a written notice to the other parties hereto. All such notices and
communications shall be effective, (a) if personally delivered or sent by
express mail or courier or if sent by certified mail, when received, and (b) if
transmitted by facsimile, when sent, receipt confirmed by telephone.

         SECTION 13.03 No Waiver; Remedies. No failure on the part of the
Administrative Agent, Liquidity Agent, any other Secured Party to exercise, and
no delay in exercising, any right hereunder shall operate as a waiver thereof;
nor shall any single or partial exercise of any right hereunder preclude any
other or further exercise thereof or the exercise of any other right. The
remedies herein provided are cumulative and not exclusive of any remedies
provided by law.

         SECTION 13.04 Binding Effect; Survival. This Agreement shall be binding
upon and inure to the benefit of Borrower, the Administrative Agent, the Lender,
ACE, the Check-Casher, the Collateral Agent, the Liquidity Agent and their
respective successors and permitted assigns, and the provisions of Section 4.02
and Article XII shall inure to the benefit of the Indemnified Parties,
respectively, and their respective successors and permitted assigns; provided,
however, nothing in the foregoing shall be deemed to authorize any assignment
not permitted by Section 11.01. This Agreement shall create and constitute the
continuing obligations of the parties hereto in accordance with its terms, and
shall remain in full force and effect until the Final Payout Date. The
indemnification and payment provisions of Article XII and Sections 4.01, 4.02,
4.03, 13.05, 13.06, 13.07 and 13.14, subject to the limitations, if any, set
forth therein, shall be continuing and shall survive any termination of this
Agreement.

         SECTION 13.05 Costs, Expenses and Taxes. In addition to its obligations
under Article XII, ACE agrees to pay on demand:

                  (a) all costs and expenses incurred by the Secured Parties and
         their respective Affiliates in connection with the negotiation,
         preparation, execution and delivery, the administration (including
         periodic auditing as provided in this Agreement), the amendment or
         syndication thereof or the enforcement of, or any actual or claimed
         breach of, the Transaction Documents, including, without limitation (i)
         the reasonable fees and expenses of counsel to any of such Persons
         incurred in connection with any of the foregoing or in advising such
         Persons as to their respective rights and remedies under any of the
         Transaction Documents, and (ii) all reasonable out-of-pocket expenses
         (including reasonable fees and expenses of independent accountants),
         incurred in connection with

                                       48
<PAGE>

         any review of Borrower's or the Check-Casher's books and records either
         prior to the execution and delivery hereof or pursuant to and subject
         to the maximum amounts described in Sections 7.01(c) and 7.04(c) (such
         out-of-pocket expenses are typically expected to include periodic asset
         audit and field examination expenses and legal and rating agency
         expenses incurred in association with any amendments to any of the
         Transaction Documents); and

                  (b) all stamp and other taxes and fees payable or determined
         to be payable in connection with the execution, delivery, filing and
         recording of the Transaction Documents, and agrees to indemnify each
         Indemnified Party against any liabilities with respect to or resulting
         from any delay in paying or omission to pay such taxes and fees.

         SECTION 13.06 No Proceedings. Borrower, the Check-Casher, ACE, the
Collateral Agent and the Liquidity Agent each hereby agrees that it will not
institute against Lender, or join any other Person in instituting against
Lender, any insolvency proceeding (namely, any proceeding of the type referred
to in the definition of Event of Bankruptcy) so long as any commercial paper
issued by Lender shall be outstanding or there shall not have elapsed one year
plus one day since the last day on which any such commercial paper shall have
been outstanding. The Check-Casher and ACE each hereby agrees that it will not
institute against Borrower, or join any other person in instituting against
Borrower, any insolvency proceeding (namely, any proceeding of the type referred
to in clause (a) of the definition of "Event of Bankruptcy") so long as any debt
of Borrower shall be outstanding hereunder or there shall not have elapsed one
year plus one day since the last day on which any such debt shall have been
outstanding. The foregoing shall not limit the Check-Casher's right to file any
claim in or otherwise take any action with respect to any insolvency proceeding
that was instituted by any other Person. The provisions of this Section 13.06
shall survive the termination of this Agreement.

         SECTION 13.07 Confidentiality.

                  (a) Each of the parties to this Agreement shall maintain, and
         shall cause each of its employees and officers to maintain, the
         confidentiality of this Agreement and all information with respect to
         the other parties hereto, including all information regarding the
         Borrower, ACE and the Check-Casher and their respective businesses
         obtained in connection with the structuring, negotiating and execution
         of the transactions contemplated herein, except that each such party
         and its officers and employees may (i) disclose such information to its
         external accountants, attorneys, investors, potential investors and
         their agents ("Excepted Persons"); provided, however, that each
         Excepted Person shall, as a condition to any such disclosure, agree for
         the benefit of the other parties hereto that such information shall be
         used solely in connection with such Excepted Person's evaluation of the
         Borrower, the Check-Casher and their respective affiliates or such
         Excepted Person's relationship with such Person, (ii) disclose the
         existence of this Agreement, but not the financial terms thereof, (iii)
         disclose such information as is required by an Applicable Law or an
         order of an judicial or administrative proceeding and (iv) disclose
         this Agreement and related information in any suit, action, proceeding
         or investigation (whether in law or in equity or pursuant to
         arbitration) involving any of the Transaction Documents for the purpose
         of defending itself, reducing its liability, or protecting or
         exercising any of its claims, rights, remedies,

                                       49
<PAGE>

         or interests under or in connection with any of the Transaction
         Documents. It is understood that the financial terms that may not be
         disclosed except in compliance with this Section 13.07(a) include all
         fees and other pricing terms and all Events of Default, Check-Casher
         Events of Default and priority of payment provisions.

                  (b) Anything herein to the contrary notwithstanding, the
         Borrower and the Check-Casher each hereby consents to the disclosure of
         any nonpublic information with respect to it (i) to the other parties
         hereto or the Liquidity Providers, (ii) by the other parties hereto or
         the Liquidity Providers to any prospective or actual assignee or
         participant of any of them or (iii) by the Administrative Agent or the
         Liquidity Agent to any rating agency, Commercial Paper Note dealer or
         provider of a surety, guaranty or credit or liquidity enhancement to
         the Lender and to any officers, directors, employees, outside
         accountants and attorneys of any of the foregoing, provided each such
         Person is informed of the confidential nature of such information. In
         addition, any such nonpublic information may be disclosed as required
         pursuant to any law, rule, regulation, direction, request or order of
         any judicial, administrative or regulatory authority or proceedings
         (whether or not having the force or effect of law).

                  (c) Notwithstanding anything herein to the contrary, the
         foregoing shall not be construed to prohibit (i) disclosure of any and
         all information that is or becomes publicly known, (ii) disclosure of
         any and all information (A) if required to do so by any applicable
         statute, law, rule or regulation, (B) to any government agency or
         regulatory body having or claiming authority to regulate or oversee any
         respects of the applicable Person's business or that of their
         Affiliates, (C) pursuant to any subpoena, civil investigative demand or
         similar demand or request of any court, regulatory authority,
         arbitrator or arbitration to which the applicable Person, or its
         Affiliates or an officer, director, employer or shareholder thereof is
         a party, (D) in any preliminary or final offering circular,
         registration statement or contract or other document pertaining to the
         transactions contemplated herein approved in advance by the Borrower,
         ACE or Check-Casher or (E) to any affiliate, independent or internal
         auditor, agent, employee or attorney of the applicable Person having a
         need to know the same, provided that such Person advises such recipient
         of the confidential nature of the information being disclosed, or (iii)
         any other disclosure authorized by the Borrower, ACE or Check-Casher.

         SECTION 13.08 Captions and Cross References. The various captions
(including, without limitation, the table of contents) in this Agreement are
provided solely for convenience of reference and shall not affect the meaning or
interpretation of any provision of this Agreement. Unless otherwise indicated,
references in this Agreement to any Section, Appendix, Schedule or Exhibit are
to such Section of or Appendix, Schedule or Exhibit to this Agreement, as the
case may be, and references in any Section, subsection, or clause to any
subsection, clause or subclause are to such subsection, clause or subclause of
such Section, subsection or clause.

         SECTION 13.09 Integration. This Agreement contains a final and complete
integration of all prior expressions by the parties hereto with respect to the
subject matter hereof and shall constitute the entire understanding among the
parties hereto with respect to the subject matter hereof, superseding all prior
oral or written understandings.

                                       50
<PAGE>

         SECTION 13.10 Governing Law. THIS AGREEMENT, INCLUDING THE RIGHTS AND
DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT REGARD TO
CONFLICTS OF LAW PRINCIPLES).

         SECTION 13.11 Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY
EXPRESSLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO
ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY OTHER TRANSACTION
DOCUMENT OR UNDER ANY AMENDMENT, INSTRUMENT OR DOCUMENT DELIVERED OR WHICH MAY
BE IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR ARISING FROM ANY BANKING
OR OTHER RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER
TRANSACTION DOCUMENT AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE
TRIED BEFORE A COURT AND NOT A JURY TRIAL.

         SECTION 13.12 Consent to Jurisdiction; Waiver of Immunities. EACH OF
THE PARTIES HERETO HEREBY ACKNOWLEDGES AND AGREES THAT:

                  (a) IT IRREVOCABLY (i) SUBMITS TO THE NON-EXCLUSIVE
         JURISDICTION OF ANY UNITED STATES FEDERAL COURT, AND, IF FEDERAL
         JURISDICTION IS NOT AVAILABLE, OF ANY NEW YORK STATE COURT, IN EITHER
         CASE SITTING IN NEW YORK, NEW YORK, IN ANY ACTION OR PROCEEDING ARISING
         OUT OF OR RELATING TO THIS AGREEMENT, (ii) AGREES THAT ALL CLAIMS IN
         RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN
         SUCH NEW YORK STATE OR FEDERAL COURT, AND (iii) WAIVES, TO THE FULLEST
         EXTENT IT MAY EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM
         TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING.

                  (b) TO THE EXTENT THAT IT HAS OR HEREAFTER MAY ACQUIRE ANY
         IMMUNITY FROM THE JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS
         (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT,
         ATTACHMENT IN AID TO EXECUTION, EXECUTION OR OTHERWISE) WITH RESPECT TO
         ITSELF OR ITS PROPERTY, IT HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN
         RESPECT OF ITS OBLIGATIONS UNDER OR IN CONNECTION WITH THIS AGREEMENT.

         SECTION 13.13 Execution in Counterparts; Severability. This Agreement
may be executed in any number of counterparts and by the different parties
hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which when taken together shall constitute one and
the same agreement. In case any provision in or obligation under this Agreement
shall be invalid, illegal or unenforceable in any jurisdiction, the

                                       51
<PAGE>

validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction, shall
not in any way be affected or impaired thereby.

         SECTION 13.14 No Recourse Against Certain Parties. No recourse under or
with respect to any obligation, covenant or agreement (including, without
limitation, the payment of any fees or any other obligations) of any Secured
Party as contained in any Transaction Document or any other agreement,
instrument or document entered into by it pursuant thereto or in connection
therewith shall be had against any incorporator, affiliate, administrator,
stockholder, officer, employee or director of such Secured Party, by the
enforcement of any assessment or by any legal or equitable proceeding, by virtue
of any statute or otherwise; it being expressly agreed and understood that the
agreements of each Secured Party contained in the Transaction Documents and all
of the other agreements, instruments and documents entered into by it pursuant
thereto or in connection therewith are, in each case, solely the respective
corporate obligations of such Secured Party, and that no personal liability
whatsoever shall attach to or be incurred by any incorporator, stockholder,
affiliate, administrator, officer, employee or director under or by reason of
any of the obligations, covenants or agreements of such Secured Party contained
in any Transaction Document or in any other such instruments, documents or
agreements, or which are implied therefrom, and that any and all personal
liability of each incorporator, stockholder, affiliate, administrator, officer,
employee or director of any Secured Party for breaches by such Secured Party of
any such obligations, covenants or agreements, which liability may arise either
at common law or at equity, by statute or otherwise, is hereby expressly waived
as a condition of and in consideration for the execution of this Agreement. The
provisions of this Section 13.14 shall survive the termination of this
Agreement.

                                       52
<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

                                  ACE FUNDING LLC

                                  By: /s/ Mike Briskey
                                      ------------------------------------------
                                  Name: Mike Briskey
                                  Title: Vice President

                                  ACE Funding LLC
                                  1231 Greenway Drive
                                  Suite 600
                                  Irving, TX 75038
                                  Facsimile No.: (972) 582-1464
                                  Attention: Joe W. Conner

                                  With a copy to:

                                  ACE Cash Express, Inc.
                                  1231 Greenway Drive
                                  Suite 600
                                  Irving, TX 75038
                                  Facsimile No.: (972) 582-1464
                                  Attention: Joe W. Conner

                                      S-1           LOAN AND SERVICING AGREEMENT
<PAGE>

                                 ACE CASH EXPRESS, INC.
                                 individually and as Check-Casher

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

                                 ACE Cash Express, Inc.
                                 1231 Greenway Drive
                                 Suite 600
                                 Irving, TX 75038
                                 Facsimile No.: (972) 582-1464
                                 Attention: Joe W. Conner

                                      S-2           LOAN AND SERVICING AGREEMENT
<PAGE>

                            AUTOBAHN FUNDING COMPANY LLC
                            as Lender

                            By:      DZ BANK AG DEUTSCHE ZENTRAL-
                                     GENOSSENSCHAFTSBANK FRANKFURT AM MAIN

                            By:      /s/ Patrick Preece
                                     -------------------------------------------
                            Name:    Patrick Preece
                            Title:   Vice President

                            By:      /s/ Dan Marino
                                     -------------------------------------------
                            Name:    Dan Marino
                            Title:   Vice President

                            Autobahn Funding Company LLC
                            c/o DZ Bank AG Deutsche Zentral-Genossenschaftsbank
                            Frankfurt am Main
                            609 5th Avenue
                            New York, New York 10017
                            Facsimile No.: (212) 745-1651
                            Attention: Asset Securitization Group

                                      S-3           LOAN AND SERVICING AGREEMENT
<PAGE>

                                    DZ BANK AG DEUTSCHE ZENTRAL-
                                         GENOSSENSCHAFTSBANK
                                         FRANKFURT AM MAIN
                                     as Administrator and as Liquidity Agent

                                    By:      /s/ Patrick Preece
                                             -----------------------------------
                                    Name:    Patrick Preece
                                    Title:   Vice President

                                    By:      /s/ Dan Marino
                                             -----------------------------------
                                    Name:    Dan Marino
                                    Title:   Vice President

                                    DZ Bank AG Deutsche Zentral-
                                    Genossenschaftsbank Frankfurt am Main
                                    609 5th Avenue
                                    New York, New York 10017
                                    Facsimile No.: (212) 745-1651
                                    Attention: Asset Securitization Group

                                      S-4           LOAN AND SERVICING AGREEMENT
<PAGE>

                                   U.S. BANK NATIONAL ASSOCIATION,
                                      as Collateral Agent

                                   By:      /s/ Eve O. Kaplan
                                            ------------------------------------
                                   Name:    Eve. O. Kaplan
                                   Title:   Vice President

                                   U.S. Bank National Association
                                   180 East Fifth Street
                                   St. Paul, Minnesota  55101
                                   Facsimile No.: (651) 244-0089 or 1797
                                   Attention: Structured Finance/ACE Funding LLC

                                      S-5           LOAN AND SERVICING AGREEMENT
<PAGE>

                                   APPENDIX A

                                   DEFINITIONS

         This is Appendix A to the Loan and Servicing Agreement dated as of
December 18, 2002 among ACE Funding LLC, ACE Cash Express, Inc., Autobahn
Funding Company LLC, DZ Bank AG Deutsche Zentral-Genossenschaftsbank Frankfurt
am Main and U.S. Bank National Association (as amended, supplemented or
otherwise modified from time to time, this "Agreement"). Each reference in this
Appendix A to any Section, the Preamble, Appendix or Exhibit refers to such
Section of or Appendix, Preamble or Exhibit to this Agreement.

         A. Defined Terms. As used in this Agreement, unless the context
requires a different meaning, the following terms have the meanings indicated
hereinbelow:

         "Account Control Agreement" means the account control agreement between
the Collateral Agent and the Borrower, substantially in the form of Exhibit
5.01(w) hereto.

         "Accrued Facility Costs" means, on any day during the Usage Period, the
aggregate of (a) the accrued and unpaid Facility Fee, (b) the accrued and unpaid
Collateral Agent Fee, (c) the accrued and unpaid Servicing Fees, (d) the accrued
and unpaid Approved Vault Bank Fees, (e) the accrued and unpaid Approved Courier
Fee, and (f) all other accrued and unpaid fees, expenses and indemnities payable
by the Borrower owing under this Agreement.

         "Administrative Agent" has the meaning set forth in the preamble.

         "Advance Percentage" means, at any time, the amount, expressed as a
percentage, determined by dividing (i) the Facility Amount by (ii) the Net
Balance.

         "Affected Party" means each of the Lender, each Liquidity Provider, any
permitted assignee or participant of the Lender or any Liquidity Provider, the
Administrative Agent, the Liquidity Agent and any permitted assignee or
participant thereof.

         "Affiliate" when used with respect to a Person means any other Person
controlling, controlled by, or under common control with, such Person.

         "Agreement" has the meaning set forth in the preamble.

         "Annual Commitment Fee" has the meaning set forth in the Fee Letter.

         "Applicable Law" means all existing and future applicable laws, rules,
regulations (including proposed, temporary and final income tax regulations),
statutes, treaties, codes, ordinances, permits, certificates, orders and
licenses of and interpretations by any Governmental Authority, and applicable
judgments, decrees, injunctions, writs, orders or like action of any court,
arbitrator or other administrative, judicial or quasi-judicial tribunal or
agency of competent jurisdiction.

         "Approved Bank" means Imperial Capital Bank and each other issuer of
RALs approved by the Administrative Agent at the request of the Borrower.

<PAGE>

         "Approved Courier" means a Person who performs armored car carrier cash
transportation services for the Borrower pursuant to an Approved Courier
Agreement, including withdrawal of Cash from the applicable Approved Vault
Banks, transportation of Cash and, as applicable, Checks, to and from SSMs and
who is approved in writing by the Administrative Agent. Initially, Loomis, Fargo
& Co. and AT Systems Inc. shall be designated Approved Couriers hereunder.

         "Approved Courier Agreement" means an agreement substantially in the
form of Annex I, approved in writing by ACE, the Administrative Agent, the
Liquidity Agent, and the Collateral Agent, between the Borrower and an Approved
Courier.

         "Approved Courier Fee" means the fees and expenses payable during the
Usage Period by the Borrower to each Approved Courier pursuant to an Approved
Courier Agreement, which fee shall be payable by the Borrower pursuant to
Section 3.03.

         "Approved Tax Provider" means H&R and each other provider of tax return
services approved by the Administrative Agent at the request of the Borrower.

         "Approved Vault Bank" means each financial institution approved in
writing by the Administrative Agent. Each Approved Vault Bank must have a
long-term unsecured rating of at least "A2" or the equivalent by Moody's;
provided that Hibernia Bank must have a long-term unsecured rating of at least
"Baa2" or its equivalent. Initially, Wells Fargo Bank, Wachovia Bank, National
Association, U.S. Bank National Association, National City Bank, Hibernia Bank,
Comerica Bank, AmSouth Bank and Bank of America, N.A. shall be designated as
Approved Vault Banks hereunder.

         "Approved Vault Bank Agreement" means, with respect to any Vault
Collection Account in the name of the Borrower, an agreement substantially in
the form of Annex II approved in writing by ACE, the Administrative Agent, the
Liquidity Agent, and the Collateral Agent between an Approved Vault Bank and the
Borrower.

         "Approved Vault Bank Fee" means the fees and expenses payable during
the Usage Period by the Borrower to each Approved Vault Bank pursuant to an
Approved Vault Bank Agreement or account agreement, as applicable, which fee
shall be payable by the Borrower pursuant to Section 3.03.

         "Asset Interest" means the Note and all rights in the Assets and the
Transaction Documents related to the Note.

         "Assets" means all of the Borrower's right, title and interest in, to
and under: (i) the Cash; (ii) the Checks; (iii) the Trust Collection Account,
and all investments and funds therein; (iv) each Vault Collection Account, and
all investments and funds therein; (v) the Reserve Account, and all investments
and funds therein; (vi) all Related Rights; (vii) the Approved Courier
Agreements, the Electronic Presentment Agreement and Approved Vault Bank
Agreements; (viii) all books and records related to the foregoing; (ix) all
Collections and other proceeds thereof; and (x) all proceeds of any and all of
the foregoing.

                                  Appendix A-2
<PAGE>

         "Autobahn" means Autobahn Funding Company LLC, a Delaware limited
liability company, its successors and assigns.

         "Base Rate" means, on any date, a fluctuating rate of interest per
annum equal to the rate of interest most recently publicly announced by JPMorgan
Chase Bank at its principal offices in New York, New York as its prime
commercial lending rate. The Base Rate is not necessarily intended to be the
lowest rate of interest determined by the Liquidity Agent in connection with
extensions of credit. Any determination of the Base Rate by the Liquidity Agent
shall, in the absence of manifest error, be conclusive and binding upon the
Borrower.

         "Borrower" has the meaning set forth in the preamble.

         "Borrowing" means the aggregate Loans made on a specific Borrowing
Date.

         "Borrowing Base Report" has the meaning set forth in Section 8.03(i).

         "Borrowing Date" means each date on which a Borrowing is consummated.

         "Borrowing Notice" has the meaning set forth in Section 1.02(a).

         "Business Day" means any day of the year other than a Saturday or
Sunday on which (a) banks are not required or authorized to be closed in New
York, New York, Dallas, Texas and the State in which the Corporate Trust Office
of the Collateral Agent is located and (b) if the term "Business Day" is used in
connection with the Eurodollar Rate, dealings in United States dollar deposits
are carried on in the London interbank market.

         "Capital Limit" has the meaning set forth in Section 1.01.

         "Cash" means all cash or deposits, as applicable, originally funded
pursuant to a Borrowing hereunder, whether located in SSMs, in the vault of an
Approved Courier, in an Approved Vault Bank or otherwise in possession of an
Approved Courier or an Approved Vault Bank.

         "Cash Inventory Provision Fee" means, for each Usage Period, a fee
equal to the sum of (i) the product of (x) 4.50% and (y) the average daily
Facility Amount during such Usage Period plus (ii) the Supplemental Cash
Inventory Provision Fee for such Usage Period. The Cash Inventory Provision Fee
may be amended by mutual agreement between the Borrower and the Check Casher
prior to any Usage Period.

         "Change in Control" means, (i) with respect to the Borrower, that at
any time, ACE shall fail to own, directly or indirectly, free and clear of any
adverse claim, 100% of the outstanding membership interests of the Borrower, and
(ii) with respect to ACE, the acquisition by any Person or group of Persons
(within the meaning of Section 13 or 14 of the Exchange Act) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated by the Securities and
Exchange Commission under the Exchange Act) of issued and outstanding shares of
the capital stock of ACE entitled (without regard to the occurrence of any
contingency) to vote for the election of members of the board of directors of
ACE and having a then present right to exercise 50% or more of the voting power
for the election of members of the board of directors of ACE.

                                  Appendix A-3
<PAGE>

         "Check Cashing Fee" means, for each Check cashed by a Tax Filer in an
SSM during the Usage Period, the minimum amount charged by ACE set forth on
Schedule V in the market in which such Check is cashed (as such Schedule V is
amended or updated from time to time with notice to and the consent of the
Administrative Agent, which consent shall not be unreasonably withheld, provided
that the consent of Administrative Agent shall not be required if the fees are
not reduced below 2.50% of the face amount of the Checks cashed).

         "Check" means a cashier's check issued by an Approved Bank in
conjunction with an income tax refund or income tax loan that has been cashed by
a Tax Filer at an SSM, whether such check is in an SSM, in the vault of an
Approved Courier or an Approved Vault Bank or otherwise in the possession or
control of an Approved Courier or an Approved Vault Bank following being cashed
at an SSM.

         "Check-Casher" means ACE initially, in its capacity as Check-Casher
hereunder, and any successor Check-Casher designated pursuant to Section 8.07.

         "Check-Casher Event of Default" means each of the following events:

                  (a) Failure by the Check-Casher to deliver any payments,
         electronic presentment orders, Collections or proceeds of the Assets as
         required under the terms of any Transaction Document;

                  (b) Inability or failure by the Check-Casher to satisfy any
         reporting, certification, notification or documentation requirements
         under the terms of any Transaction Document and such failure remains
         uncured for more than 30 days after written notice by the
         Administrative Agent, the Borrower or the Collateral Agent;

                  (c) Failure on the part of the Check-Casher to observe or
         perform any covenant set forth in any Transaction Document and such
         failure remains uncured for more than 30 days after written notice by
         the Administrative Agent, the Borrower or the Collateral Agent;

                  (d) Any representation, warranty or statement of the
         Check-Casher made in any Transaction Document shall prove to have been
         false or incorrect in any material respect and such condition continues
         unremedied for more than 30 days after written notice by the
         Administrative Agent, the Borrower or the Collateral Agent;

                  (e) The occurrence of a Change in Control with respect to ACE
         (unless approved in writing by the Administrative Agent);

                  (f) The net worth of the Check-Casher (calculated in
         accordance with GAAP) does not exceed $50,000,000;

                  (g) The Defaulted Amount exceeds $250,000; and

                  (h) There shall exist any event or occurrence that would
         reasonably be expected to cause a Material Adverse Effect;

                                  Appendix A-4
<PAGE>

                  (i) An Event of Bankruptcy shall have occurred and remain
         continuing with respect to the Check-Casher;

                  (j) the Check-Casher fails to deliver the Borrowing Base
         Report or Servicing Report within one Business Day of the date required
         hereby; and

                  (k) The Check-Casher shall default in any payment obligation
         under any agreement relating to the SSMs and such payment default shall
         continue for a period of 5 days.

         "Check-Cashing Payment" means, for any Usage Period, an amount equal to
the aggregate Check Cashing Fees charged by ACE minus the aggregate Cash
Inventory Provision Fee for such Usage Period.

         "Collateral Agent" means U.S. Bank National Association, a national
banking association, together with any successors thereto.

         "Collateral Agent Fee" means, with respect to any Monthly Period during
the Usage Period, the fee payable by the Borrower pursuant to that certain
letter agreement with the Collateral Agent attached as Annex VI.

         "Collections" means, with respect to the Assets, (i) all funds which
are received by Borrower or Check-Casher with respect to such Assets and,
without duplication, the Pledged Collateral, including any insurance proceeds
related thereto, and all payments in respect of Related Rights, and (ii) all
Recoveries.

         "Commercial Paper Holders" means the holders from time to time of the
Commercial Paper Notes.

         "Commercial Paper Notes" means short-term promissory notes issued or to
be issued by Lender to fund its investments in financial assets.

         "Commitment" means the obligation of Lender to make Loans pursuant to
this Agreement.

         "Company Note" means the non-negotiable term note issued by the
Borrower and payable to the Check-Casher, substantially in the form of Exhibit
5.01(u) hereto.

         "Corporate Trust Office" means the principal office of the Collateral
Agent which at any particular time its corporate trust business shall be
administered, which office is initially located at 180 East Fifth Street, St.
Paul, Minnesota 55101, Attention: Structured Finance/Ace Cash Express.

         "CP Rate" means, with respect to any Interest Period, the per annum
rate equal to the weighted average of the per annum rates paid or payable by the
Lender from time to time as interest on or otherwise (by means of interest rate
hedges or otherwise) in respect of the Commercial Paper Notes (or other
Borrowings to fund small or odd commercial paper market) that is allocated, in
whole or in part, by the Administrative Agent to fund or maintain the Asset

                                  Appendix A-5
<PAGE>

Interest during such period, as determined by the Administrative Agent;
provided, the "CP Rate" shall be calculated in a manner which includes the costs
and expenses of the Lender of issuing the related Commercial Paper Notes,
including all dealer commissions thereon and note issuance costs in connection
therewith.

         "Defaulted Amount" means, as of any Reporting Date, for any Monthly
Period, the excess (if positive) of (a) the outstanding amount of Defaulted
Assets during such Monthly Period over (b) the aggregate amount of Collections
during such Monthly Period on Assets that became Defaulted Assets in previous
Monthly Periods.

         "Defaulted Asset" means any Asset as to which:

                  (a) The related Check has not been fully collected upon within
         (I) 3 Business Days from the date on which the Approved Vault Bank
         presented such Check to an Approved Bank for payment or (II) if the
         Electronic Presentment Agreement is in place, 3 Business Days from the
         date the Check is cashed at the applicable SSM;

                  (b) The Check has not been presented to the applicable
         Approved Bank by the applicable Approved Vault Bank within 7 Business
         Days of the cashing of such Check at the applicable SSM or, if the
         Electronic Presentment Agreement is in place, the requisite information
         with respect to such Check has not been presented in accordance with
         the terms thereof by ACE within 1 Business Day of the cashing of such
         check at the applicable SSM (or within 2 Business Days in the case of
         an "Exception" identified by Household Tax Masters in accordance with,
         and as defined in, the Electronic Presentment Agreement);

                  (c) The related Cash or Check has been stolen or, for a period
         of more than 5 Business Days, is unaccounted for; or

                  (d) The related Check is returned by the Approved Bank
         subsequent to the Approved Bank's honoring of such Check.

         "Denied Checks Amount" means, as of any Reporting Date, for any Monthly
Period, the outstanding face amount of Checks that became Defaulted Assets as a
result of an Approved Bank's refusal to honor such Checks during such Monthly
Period for reasons other than such Checks being determined to be fraudulent or
stolen.

         "Diebold SSM" means the self-service check cashing machines leased or
owned by ACE and manufactured by Diebold Credit Corporation or Diebold,
Incorporated.

         "Dollars" means dollars in lawful money of the United States of
America.

         "DZ Bank" has the meaning set forth in the preamble.

         "Electronic Presentment Agreement" means the electronic presentment
agreement among Household Tax Masters, Imperial Capital Bank, a California
state-chartered bank, ACE, the Borrower and H&R, substantially in the form of
Exhibit 5.01(v) hereto.

                                  Appendix A-6
<PAGE>

         "Eligible Assets" means, at any time, an Asset that, with respect to
Checks:

                  (a) Is a cashier's check issued by an Approved Bank
         substantially in the form attached hereto as Annex IV;

                  (b) Which, at the time of the automatic endorsement of such
         Check by the SSM, was not subject to any Liens;

                  (c) Was issued by an Approved Bank in connection with a valid
         RAL from such Approved Bank and the amount thereof does not exceed the
         applicable Refund;

                  (d) Is in the possession of either an Approved Courier, an
         Approved Vault Bank or an SSM and has not been honored by an Approved
         Bank;

                  (e) Was automatically endorsed by the SSM to read "Void ACE
         Cash Express Void";

                  (f) Is Dollar denominated;

                  (g) Is payable to a Tax Filer for whom a related Tax Filer
         Account has been established and as to whom all requirements of the
         related RAL Agreement have been met;

                  (h) Relates to a Refund as to which the IRS has given notice
         that the Refund has been accepted, that the related Tax Filer has no
         outstanding debts according to the IRS' debt indicator, and no apparent
         mathematical errors have been found in the related tax filing;

                  (i) At the time of issuance to a Tax Filer, all of ACE's check
         cashing requirements have been met; and

                  (j) Is not a Defaulted Asset.

         and, with respect to Cash:

                  (a) Is in an SSM, a Vault Collection Account or in the
         possession of an Approved Courier; and

                  (b) Is not a Defaulted Asset.

         "Eligible Investments" means any one or more of the following
obligations or securities:

                  (ii) direct non-callable obligations of, and non-callable
         obligations fully guaranteed by, the United States of America, or any
         agency or instrumentality of the United States of America the
         obligations of which are backed by the full faith and credit of the
         United States of America;

                  (iii) demand and time deposits in, certificates of deposits
         of, and bankers' acceptances issued by, any depository institution or
         trust company incorporated under the

                                  Appendix A-7
<PAGE>

         laws of the United States of America or any state thereof, having a
         combined capital and surplus of at least $250,000,000, and subject to
         supervision and examination by federal and/or state banking
         authorities, so long as at the time of such investment or contractual
         commitment providing for such investment the commercial paper or other
         short-term debt obligations of such depository institution or trust
         company (or, in the case of a depository institution that is the
         principal Subsidiary of a holding company, the commercial paper or
         other short-term debt obligations of such holding company) are rated
         "P-1" by Moody's and "F1" by Fitch;

                  (iv) repurchase obligations with respect to and collateralized
         by (A) any security described in clause (i) above or (B) any other
         security issued or guaranteed by an agency or instrumentality of the
         United States of America, in each case entered into with a depository
         institution or trust company (acting as principal) of the type
         described in clause (ii) above, provided that the Collateral Agent has
         taken delivery of such security;

                  (v) commercial paper (including both non-interest-bearing
         discount obligations and interest-bearing obligations, but excluding
         Commercial Paper Notes) payable on demand or on a specified date not
         more than one year after the date of issuance thereof rated "P-1" by
         Moody's and "F1" by Fitch at the time of such investment; and

                  (vi) interests in any money market fund which at the date of
         acquisition of the interest therein (including any such fund that is
         managed by the Collateral Agent or an Affiliate of the Collateral Agent
         or for which the Collateral Agent or an Affiliate of the Collateral
         Agent acts as an advisor) and throughout the time the interest therein
         exists has a rating of "AAA" by Standard & Poor's and "Aaa" by Moody's.

         "Eligible Pool Balance" means the sum of all Eligible Assets minus the
aggregate amount of Check Cashing Fees on the outstanding Eligible Assets
related to Checks.

         "ERISA" means the U.S. Employee Retirement Income Security Act of 1974,
as amended from time to time.

         "Eurodollar Rate (Reserve Adjusted)" means, with respect to any
Interest Period and any portion of the Asset Interest funded pursuant to the
Liquidity Agreement, a rate per annum (rounded upwards, if necessary, to the
nearest 1/100 of 1%) determined pursuant to the following formula:

                  Eurodollar Rate           =          Eurodollar Rate
                                                     ------------------
                  (Reserve Adjusted)                   1-Eurodollar
                                                     Reserve Percentage

where:

         "Eurodollar Rate" means, with respect to any Interest Period, the rate
per annum at which Dollar deposits in immediately available funds are offered to
the Eurodollar Office of the Liquidity Agent two Eurodollar Business Days prior
to the beginning of such period by prime banks in the interbank Eurodollar
market at or about 11:00 a.m., New York City time, for

                                  Appendix A-8
<PAGE>

delivery on the first day of such Interest Period, for the number of days
comprised therein and in an amount equal or comparable to the amount of such
portion of the Asset Interest.

         "Eurodollar Business Day" means a Business Day on which dealings are
carried on in the Eurodollar interbank market.

         "Eurodollar Reserve Percentage" means, with respect to any Interest
Period, the then applicable percentage (expressed as a decimal) prescribed by
the Federal Reserve Board for determining reserve requirements applicable to
"Eurocurrency Liabilities" pursuant to Regulation D.

         "Event of Bankruptcy" shall be deemed to have occurred with respect to
a Person if either:

                  (a) a case or other proceeding shall be commenced, without the
         application or consent of such Person, in any court, seeking the
         liquidation, reorganization, debt arrangement, dissolution, winding up,
         or composition or readjustment of debts of such Person, the appointment
         of a trustee, receiver, custodian, liquidator, assignee, sequestrator
         or the like for such Person or all or substantially all of its assets,
         or any similar action with respect to such Person under any law
         relating to bankruptcy, insolvency, reorganization, winding up or
         composition or adjustment of debts, and such case or proceeding shall
         continue undismissed, or unstayed and in effect, for a period of 45
         consecutive days; or an order for relief in respect of such Person
         shall be entered in an involuntary case under the federal bankruptcy
         laws or other similar laws now or hereafter in effect; or

                  (b) such Person shall commence a voluntary case or other
         proceeding under any applicable bankruptcy, insolvency, reorganization,
         debt arrangement, dissolution or other similar law now or hereafter in
         effect, or shall consent to the appointment of or taking possession by
         a receiver, liquidator, assignee, trustee, custodian, sequestrator (or
         other similar official) for, such Person or for any substantial part of
         its property, or shall make any general assignment for the benefit of
         creditors, or shall fail to, or admit in writing its inability to, pay
         its debts generally as they become due, or, if a corporation or similar
         entity, its board of directors shall vote to implement any of the
         foregoing.

         "Excluded SSM" means a self-service check cashing machine owned or
leased by ACE listed on Schedule III.

         "Event of Default" has the meaning set forth in Section 9.01.

         "Exchange Act" means the Securities and Exchange Act of 1934, as
amended.

         "Face Amount" means in relation to any Commercial Paper Note (a) if
issued on a discount basis, the face amount stated therein and (b) if issued on
an interest-bearing basis, the principal amount stated therein plus the amount
of all interest scheduled to accrue thereon through its stated maturity date.

         "Facility Amount" has the meaning set forth in Section 1.01.

                                  Appendix A-9
<PAGE>

         "Facility Fee" has the meaning set forth in the Fee Letter, and
comprises the Program Fee and the Non-Use Fee.

         "Federal Reserve Board" means the Board of Governors of the Federal
Reserve System, or any successor thereto or to the functions thereof.

         "Fee Letter" means the letter agreement, dated December 18, 2002, among
the Borrower, ACE, the Lender and the Administrative Agent regarding interest
rates applicable to the Facility and regarding certain fees, including the
Annual Commitment Fee, the Increase Fee, the Prepayment Fee, the Facility Fee,
the Program Fee and the Non-Use Fee, as such letter agreement may from time to
time be amended, supplemented or otherwise modified from time to time with the
consent of all of the parties thereto.

         "Final Payout Date" means the date following the Termination Date on
which the principal and interest of all Loans have been paid in full and all
other amounts payable by Borrower and Check-Casher under the Transaction
Documents shall have been paid in full.

         "Fitch" means Fitch, Inc., or any successor thereto.

         "GAAP" means generally accepted accounting principles applied on a
consistent basis.

         "Governmental Authority" means any federal, state, county, municipal or
other governmental or regulatory authority, agency, board, body, commission,
instrumentality, court or any political subdivision thereof or any accounting
board or authority (whether or not part of a government) which is responsible
for the establishment or interpretation of material or international accounting
principles, in each case whether foreign or domestic.

         "H&R" means H&R Block Tax Services, Inc., a Missouri corporation.

         "Household" means Household International, Inc.

         "Household Tax Masters" means Household Tax Masters, Inc., a Delaware
corporation.

         "Increase Fee" has the meaning set forth in the Fee Letter.

         "Indemnified Amounts" has the meaning set forth in Section 12.01.

         "Indemnified Party" has the meaning set forth in Section 12.01.

         "Insurance Schedule" means the schedule attached hereto as Schedule IV.

         "Intercreditor Agreement" means the intercreditor agreement between the
Collateral Agent, the Administrative Agent and Texas Capital Bank, National
Association, substantially in the form of Exhibit 5.01(x) hereto.

         "Interest Period" means, for any period during the Usage Period, the
interest period determined in accordance with Section 1.02(c).

                                 Appendix A-10
<PAGE>

         "Interest Rate" means, with respect to any Loan and any Interest Period
therefor, (a) if such Loan is funded by the Lender during such Interest Period
through the issuance of Commercial Paper Notes, the CP Rate or (b) if such Loan
is funded by the Lender during such Interest Period other than through the
issuance of Commercial Paper Notes, the Eurodollar Rate, provided, however, that
following the occurrence of a Termination Event, the Interest Rate shall equal
the Eurodollar Rate plus 4.00% and following the occurrence of an Event of
Default, the Interest Rate shall equal the Base Rate plus 2.00%.

         "IRS" means the United States Internal Revenue Service.

         "Lender" has the meaning set forth in the preamble.

         "Licensing Inquiry" means any inquiry, notice or other communication,
whether written, verbal, or in electronic form, from any Governmental Authority
relating to any licensing requirements which may be applicable to the Borrower
or the Check-Casher in connection with the transactions contemplated by this
Agreement or any other Transaction Document.

         "Lien" means any interest in property securing an obligation owed to,
or a claim by, a Person other than the owner of the property, whether such
interest is based on the common law, statute or contract, and including, but not
limited to, the security interest lien arising from a mortgage, encumbrance,
pledge, conditional sale or trust receipt for a lease, consignment or bailment
for security purposes.

         "Liquidity Agent" means DZ Bank, as agent for the Liquidity Providers
under the Liquidity Agreement, or any successor in such capacity.

         "Liquidity Agreement" means the Liquidity Purchase Agreement, dated as
of December 31, 2002, among the Lender, the Liquidity Agent and the Liquidity
Providers, as amended, supplemented or otherwise modified from time to time.

         "Liquidity Facility" means the arrangements established pursuant to the
Liquidity Agreement to facilitate the issuance of Commercial Paper Notes.

         "Liquidity Providers" means the liquidity institutions from time to
time that are parties to the Liquidity Agreement.

         "Loan" has the meaning set forth in Section 1.01.

         "Majority Liquidity Providers" has the meaning set forth in Section
1.02 of the Liquidity Agreement.

         "Material Adverse Effect" with respect to any event or circumstance, a
material adverse effect on:

                  (i) the business, assets, financial condition or operations of
         Borrower, ACE or the Check-Casher;

                                 Appendix A-11
<PAGE>

                  (ii) the ability of the Check-Casher or Borrower to perform in
         any material respect its obligations under any Transaction Document;

                  (iii) the validity, enforceability or collectibility of any
         Transaction Document or any Asset; or

                  (iv) the status, existence, perfection, priority or
         enforceability of the Collateral Agent's interest in the Assets or
         Borrower's ownership interest in the Assets.

         "Maturity Date" means April 30, 2008.

         "Maximum Advance Percentage" means 99%.

         "Maximum Facility Amount" has the meaning set forth in Section 1.01.

         "Monthly Period" means each calendar month.

         "Moody's" means Moody's Investor Services, Inc., or any successor
thereto.

         "Net Balance" means, at any time during the Usage Period, the sum of
(x) Eligible Pool Balance at such time and (y) all amounts on deposit in the
Trust Collection Account (net of Accrued Facility Costs) at such time.

         "Non-Use Fee" shall be the amount payable by the Borrower during the
Usage Period as set forth in the Fee Letter.

         "Note" has the meaning set forth in Section 2.01.

         "Optional Redemption Date" means, with respect to any Usage Period, the
Business Day designated as such by the Borrower upon at least 5 Business Days'
prior written notice to the Administrative Agent; provided that the conditions
set forth in Section 2.06 shall be satisfied.

         "Person" means an individual, partnership, corporation (including a
business trust), joint stock company, trust, unincorporated association, joint
venture, limited liability company, government or any agency or political
subdivision thereof or any other entity.

         "Pledged Collateral" has the meaning set forth in Section 1.03.

         "Prepayment Fee" has the meaning set forth in Section 2.01.

         "Program Fee" shall be the amount payable by the Borrower during the
Usage Period as set forth in the Fee Letter.

         "Program Deficiency" means, on any date, the amount (if any) by which
the Facility Amount exceeds the lesser of (i) Capital Limit or (ii) the Maximum
Facility Amount.

         "RAL" means a tax refund anticipation loan made to or a refund
anticipation check issued to a Tax Filer.

                                 Appendix A-12
<PAGE>

         "RAL Agreement" means, collectively, the application and related loan
agreement between an Approved Bank and a customer of an Approved Tax Provider in
one of the forms attached as Annex V hereto which provides, inter alia, for (i)
such Approved Bank to make a loan to such customer by issuance of a Check in an
amount not to exceed the amount of such customer's anticipated income tax refund
(net of applicable fees payable to such Approved Bank) and (ii) such customer to
direct the IRS to deposit the related Refund to the Tax Filer Account.

         "Rating Agency" means Fitch and Moody's.

         "Recoveries" means moneys collected by the Check-Casher or any Approved
Courier following instruction by Collateral Agent to return all money lent to
Borrower hereunder in possession of such Approved Courier or at any SSM serviced
by such Approved Courier.

         "Refund" means a Tax Filer's United States federal income tax refund.

         "Regulation D" means Regulation D of the Federal Reserve Board, or any
other regulation of the Federal Reserve Board that prescribes reserve
requirements applicable to nonpersonal time deposits or "Eurocurrency
Liabilities" as presently defined in Regulation D, as in effect from time to
time.

         "Regulatory Change" means, relative to any Affected Party

                  (a) any change in (or the adoption, implementation, change in
         phase-in or commencement of effectiveness of) any

                           (i) United States federal or state law or foreign law
                  applicable to such Affected Party;

                           (ii) regulation, interpretation, directive,
                  requirement or request (whether or not having the force of
                  law) applicable to such Affected Party of (A) any court,
                  government authority charged with the interpretation or
                  administration of any law referred to in clause (a)(i) or of
                  (B) any fiscal, monetary or other authority having
                  jurisdiction over such Affected Party; or

                           (iii) generally accepted accounting principles or
                  regulatory accounting principles applicable to such Affected
                  Party and affecting the application to such Affected Party of
                  any law, regulation, interpretation, directive, requirement or
                  request referred to in clause (a)(i) or (a)(ii) above;

                           (iv) any requirement of any Rating Agency applicable
                  to such Affected Party; or

                  (b) any change in the application to such Affected Party of
         any existing law, regulation, interpretation, directive, requirement,
         request or accounting principles referred to in clause (a)(i), (a)(ii)
         or (a)(iii) above.

                                 Appendix A-13
<PAGE>

         "Related Rights" means (i) all of Borrower's right, title and interest
in and to all insurance claims related to the Cash or Checks and (ii) all of
Borrower's right, title and interest in and to all Tax Filer Accounts, Refunds
and RAL Agreements.

         "Reporting Date" shall have the meaning set forth in Section 8.03(ii).

         "Required Reserve Level" means, for each Usage Period, the sum of (a)
$1,000,000 and (b) the excess of (I) all Check Cashing Fees during such Usage
Period over (II) the amount of all fees payable pursuant to Section 3.03;
provided, however, that on the date during each Usage Period on which the amount
in (b) above equals or exceeds 2.75% of the Maximum Facility Amount, the
$1,000,000 initial deposit shall be released by the Collateral Agent to the
Borrower and, thereafter, the amount in (a) above shall be zero ($0).

         "Reserve Account" means securities account number 33480101 established
at the Collateral Agent in the State of Minnesota, in the name of the Borrower
for the benefit of the Secured Parties and subject to the sole dominion and
control of the Collateral Agent pursuant to a control agreement in form and
substance acceptable to the Administrative Agent, which account has been
designated as the Reserve Account, and any other account designated as such by
the Collateral Agent, together with any securities account related thereto.

         "Responsible Officer" when used with respect to the Collateral Agent,
means any Vice President, any Assistant Vice President, any Assistant Secretary,
any Trust Officer or any other officer or employee of the Collateral Agent
customarily performing functions similar to those performed by any of the above
designated officers and also to whom, with respect to a particular matter, such
matter is referred because of such officer's or employee's knowledge of and
familiarity with the particular subject and in each case who shall have direct
responsibility for the administration of this Agreement.

         "Secured Parties" means the Lender, the Administrative Agent, the
Liquidity Agent, the Collateral Agent, the Liquidity Providers and the other
Indemnified Parties.

         "Servicing Fee" has the meaning set forth in Section 8.06(a).

         "Servicing Report" has the meaning set forth in Section 8.03.

         "Settlement Date" means the 10th day of each calendar month during the
Usage Period, or of any such day if not a Business Day, the next Business Day.

         "Settlement Period" with respect to any Loan,

                  (a) the period from the date of the first Borrowing hereunder
         to but excluding the first Settlement Date thereafter; and

                  (b) thereafter, each period from and including the preceding
         Settlement Date to but excluding the next Settlement Date.

         "Source SSM" means the self-service check cashing machines leased or
owned by ACE and manufactured by Source Technologies, Inc.

                                 Appendix A-14
<PAGE>

         "SSM" means a self-service check cashing machine owned or leased by ACE
(including both Diebold SSMs and Source SSMs) used for the disbursement of Cash
in connection with the cashing of Checks which (i) is located in the United
States of America; and (ii) is listed on Schedule II hereto, as such schedule
may be amended, supplemented and modified from time to time with the consent of
the Administrative Agent, which consent may not be unreasonably withheld or
delayed.

         "SSM Lender" means any Person party to an agreement with ACE pursuant
to which any SSMs are financed or leased.

         "Subsidiary" means, with respect to any Person, a corporation of which
such Person and/or its other Subsidiaries own, directly or indirectly, such
number of outstanding shares as have more than 50% of the ordinary voting power
for the election of directors.

         "Supplemental Cash Inventory Provision Fee" means, for any Usage
Period, an amount equal to 0.20% of the Maximum Facility Amount on the first day
of such Usage Period.

         "Tax Filer" means a customer of an Approved Tax Provider who has
entered into an RAL Agreement.

         "Tax Filer Account" means a demand deposit account at an Approved Bank
established by a Tax Filer in the name of the Tax Filer pursuant to an RAL
Agreement into which the IRS has been directed to deposit the related Refund.

         "Termination Date" means the earlier of:

                  (a) the date that the Termination Date is declared under
         Section 9.02(a) or occurs automatically pursuant to
         Section 9.02(b); and

                  (b) the date of termination in connection with a prepayment in
         full of all Loans and the payment of the applicable Prepayment Fee at
         the election of the Borrower pursuant to Section 2.01;

                  (c) the date of termination pursuant to Section 11.01; and

                  (d) the Maturity Date.

         "Termination Event" means each of the following events:

                  (a) An Event of Default occurs and is continuing;

                  (b) Household's short-term ratings shall be below "P-2" by
         Moody's , "F-2" by Fitch or "A-2" by Standard & Poor's at any time;

                  (c) Household's long-term ratings shall be below "Baa2" by
         Moodys, "BBB" by Fitch or "BBB" by Standard & Poor's ;

                                 Appendix A-15
<PAGE>

                  (d) The occurrence of any Regulatory Change that requires the
         Lender to cease issuing Commercial Paper Notes or lending funds
         hereunder, or that requires any Liquidity Provider to terminate its
         commitment under the Liquidity Agreement;

                  (e) Any approved Tax Provider's long-term rating, as
         determined by Moody's, shall be below "Baa3";

                  (f) The occurrence of the Maturity Date;

                  (g) An Event of Bankruptcy shall have occurred and remain
         continuing with respect to any Approved Tax Provider;

                  (h) ITLA Capital Corporation shall fail to maintain total
         shareholders' equity (calculated in accordance with GAAP, adjusted for
         any treasury stock transactions after September 30, 2002) in excess of
         $150,000,000 at any time or the average net income of ITLA Capital
         Corporation (as determined in accordance with GAAP) shall fail to be
         greater than $0 for any three consecutive fiscal quarters ending after
         September 30, 2002;

                  (i) Household International, Inc. or its Affiliates shall at
         any time hold less than a 99% participation interest in any RAL the
         Approved Bank with respect to which is Imperial Capital Bank;

                  (j) The failure of Imperial Capital Bank to be categorized as
         "Well Capitalized" as a state bank member of the FDIC at any time;

                  (k) Imperial Capital Bank shall fail to maintain a rating of
         at least "Green **" from Veribanc, Inc.; and

                  (l) Imperial Capital Bank shall receive notice of any
         potential enforcement action or imposition of civil money damages from,
         or become subject to any regulatory order or enforcement action by, any
         of its applicable governmental regulators.

         "Transaction Accounts" has the meaning set forth in Section 3.01(a).

         "Transaction Documents" means this Agreement, the Approved Courier
Agreements, the Approved Vault Bank Agreements, the Fee Letter, the Liquidity
Agreement, the Note, the Company Note, the Account Control Agreement, the
Intercreditor Agreement, and the other documents to be executed and delivered in
connection herewith, including, without limitation, all documentation relating
to the SSMs and the transportation of the Cash and powers of attorney from ACE
and the Borrower in favor of the Collateral Agent.

         "Trust Accounts" has the meaning set forth in Section 3.01(a).

         "Trust Collection Account" means securities account number 33480100
established at the Collateral Agent in the State of Minnesota, in the name of
the Borrower for the benefit of the Secured Parties and subject to the sole
dominion and control of the Collateral Agent pursuant to a control agreement in
form and substance acceptable to the Administrative Agent, which account has
been designated as the Trust Collection Account, and any other account
designated

                                 Appendix A-16
<PAGE>

as such by the Collateral Agent, together with any securities account related
thereto that may be established at the Collateral Agent.

         "UCC" means the Uniform Commercial Code as from time to time in effect
in the applicable jurisdiction or jurisdictions.

         "Unmatured Event of Default" means any event which, with the giving of
notice or lapse of time, or both, would become an Event of Default.

         "Usage Period" means the period from January 2nd (or the preceding
Business Day if January 2nd is not a Business Day) through the Usage Period
Maturity Date of each calendar year, commencing in January 2003; provided,
however, that if any Approved Tax Provider's long-term rating, as determined by
Moody's, shall be below BBB at any time, then (i) if a Usage Period is currently
in effect, the commitment of the Lender shall terminate on the Usage Period
Maturity Date for such Usage Period and no further Usage Period shall commence
and (ii) if a Usage Period is not currently in effect, the commitment of the
Lender shall terminate immediately and no subsequent Usage Period shall
commence.

         "Usage Period Maturity Date" means, with respect to each Usage Period,
the earlier of (i) April 30th (or the next Business Day if April 30th is not a
Business Day) of the calendar year in which such Usage Period commenced or (ii)
the Optional Redemption Date with respect to such Usage Period.

         "Vault Collection Account" has the meaning set forth in Section
3.01(a).

         B. Other Terms. All accounting terms not specifically defined herein
shall be construed in accordance with generally accepted accounting principles.
All terms used in Article 9 of the UCC in the State of New York, and not
specifically defined herein, are used herein as defined in such Article 9.

         C. Computation of Time Periods. Unless otherwise stated in this
Agreement, in the computation of a period of time from a specified date to a
later specified date, the word "from" means "from and including" and the words
"to" and "until" each means "to but excluding."

                                 Appendix A-17
<PAGE>
                                                                     SCHEDULE II

ACE CASH EXPRESS, INC.
SSM LOCATIONS FY03

SSM SCHEDULE --- DZ BANK LOCATIONS

<Table>
<Caption>
CENTER #                  H&R BLOCK OFFICE ADDRESS                                    CITY                   STATE  OFFICE ZIP
--------                  ------------------------                                    ----                   -----  ----------
<S>                       <C>                                                         <C>                    <C>    <C>
  6630                    1708 COGSWELL AVE.                                          PELL CITY              AL       35125
                          1616 TOWN SQUARE SW
  6631                    TOWN SQUARE SHOPPING CENTER                                 CULLMAN                AL       35055
  6733                    1516 QUINTARD AVE.                                          ANNISTON               AL       36201
  6614                    210 SHOPPINGWAY BLVD.                                       WEST MEMPHIS           AR       72301
  6537                    90 EAST MAIN ST                                             NEW BRITAIN            CT       06051
  6538                    593 Farmington Ave., #F                                     Hartford               CT       06106
  6541                    1548 BENNING ROAD                                           Washington             DC       20002
  6542                    4059 MINNESOTA AVE. NE                                      Washington             DC       20019
  6577                    150 EAST 1ST AVENUE                                         Miami                  FL       33010
  6578                    6120 NW 7TH AVE.                                            Miami                  FL       33127
  6643                    1150 NORTH MAIN                                             GAINESVILLE            FL       32601
  6644                    4901 PALM BEACH BLVD                                        FORT MYERS             FL       33905
  6645                    13 EAST JEFFERSON ST.                                       QUINCY                 FL       32351
  6647                    5751 N. MAIN STREET                                         JACKSONVILLE           FL       32208
  6648                    6733-2 103RD STREET                                         JACKSONVILLE           FL       32210
  6649                    2261-3 EDGEWOOD AVE W.                                      JACKSONVILLE           FL       32209
  6751                    3228 SW 35 BLVD.                                            GAINESVILLE            FL       32608
  6785                    20505 S. DIXIE HIGHWAY                                      CUTLER RIDGE           FL       33189
  6786                    1801 PALM BEACH LAKES BLVD.                                 WEST PALM BEACH        FL       33401
  6573                    3197 GLENWOOD RD                                            Decatur                GA       30032
  6574                    1157 Ralph D. Abernathy Blvd. SW                            Atlanta                GA       30310
  6575                    5195 OLD NATIONAL HWY.                                      Atlanta                GA       30349
  6576                    1909 E. VICTORY DRIVE                                       Savannah               GA       31405
  6650                    112 E. BROUGHTON STREET                                     SAVANNAH               GA       31401
  6660                    1100 EISENHOWER DR. EISEN SQ.                               SAVANNAH               GA       31406
  6661                    2685 METROPOLITAN PARKWAY                                   ATLANTA                GA       30315
  6662                    2636-4 MARTIN LUTHER KING, JR                               ATLANTA                GA       30311
  6663                    531-533 MORELAND AVE                                        ATLANTA                GA       30316
  6664                    5306 MEMORIAL DRIVE                                         STONE MOUNTAIN         GA       30083
  6665                    4729 MEMORIAL DRIVE                                         DECATUR                GA       30032
  6666                    1745 HWY 138 SPACE A-6                                      CONYERS                GA       30013
  6667                    6067 OLD NATIONAL HIGHWAY                                   COLLEGE PARK           GA       30349
  6752                    2466 MEMORIAL DRIVE                                         WAYCROSS               GA       31503
  6753                    8489 HOSPITAL DRIVE                                         DOUGLASVILLE           GA       30134
  6754                    4693 JONESBORO RD.                                          FOREST PARK            GA       30297
  6756                    2375 WESLEY CHAPEL RD.                                      DECATUR                GA       30035
  6757                    1289-A COLUMBIA DRIVE                                       DECATUR                GA       30032
  6608                    925 PIERCE STREET                                           Sioux City             IA       51101
  6594                    2900 SOUTHEASTERN AVE.                                      INDIANAPOLIS           IN       46203
  6668                    5111 W. WASHINGTON ST.                                      INDIANAPOLIS           IN       46241
  6669                    1349 COVERT AVE.                                            EVANSVILLE             IN       47714
                          TOWN & COUNTRY SHOPPING CENTER,
  6679                    828 W. MCKINLEY AVE.                                        MISHAWAKA              IN       46545
  6759                    4755 POST RD.                                               INDIANAPOLIS           IN       46226
  6790                    5390 BROADWAY                                               MERRILLVILLE           IN       46410
  6560                    2600 W BROADWAY                                             LOUISVILLE             KY       40211
  6585                    612 WEST BROADWAY                                           LOUISVILLE             KY       40202
  6586                    1777 MONMOUTH STREET                                        Newport                KY       41071
  6671                    800 MADISON AVE                                             COVINGTON              KY       41011
  6761                    3178 DIXIE HWY                                              ERLANGER               KY       41018
  6613                    2353 ST CLAUDE ST.                                          NEW ORLEANS            LA       70117
  6672                    117 MACARTHUR DRIVE                                         ALEXANDRIA             LA       71303
</Table>

<PAGE>

ACE CASH EXPRESS, INC.
SSM LOCATIONS FY03

SSM SCHEDULE --- DZ BANK LOCATIONS

<Table>
<Caption>
CENTER #                  H&R BLOCK OFFICE ADDRESS                                    CITY                   STATE  OFFICE ZIP
--------                  ------------------------                                    ----                   -----  ----------
<S>                       <C>                                                         <C>                    <C>    <C>
  6673                    5151 PLANK ROAD                                             BATON ROUGE            LA       70805
  6674                    246 MAIN STREET                                             BAKER                  LA       70714
  6675                    1602 S. RUTH STREET                                         SULPHUR                LA       70663
  6676                    2135 CATON ST.                                              NEW ORLEANS            LA       70122
  6677                    6003 BULLARD AVE., SUITE 6                                  NEW ORLEANS            LA       70128
  6678                    3939 TULANE AVENUE                                          NEW ORLEANS            LA       70119
  6680                    809 SOUTH SALISBURY BLVD                                    SALISBURY              MD       21801
  6595                    21500 NORTHWESTERN HWY., STE. 519                           SOUTHFIELD             MI       48075
  6596                    7549 E 9 MILE RD                                            WARREN                 MI       48091
  6597                    SOUTHLD CTR. 23000 EUREKA RD.                               TAYLOR                 MI       48180
  6598                    12895 WOODWARD                                              HIGHLAND PARK          MI       48203
  6599                    10765 GRAND RIVER                                           DETROIT                MI       48204
  6600                    13032 GRATIOT                                               DETROIT                MI       48205
  6601                    14418 GRATIOT                                               DETROIT                MI       48205
  6602                    10017 JOSEPH CAMPAU                                         HAMTRAMCK              MI       48212
  6603                    20200 W. 7 MILE                                             DETROIT                MI       48219
  6604                    18000 VERNIER                                               HARPER WOODS           MI       48225
  6605                    15570 JOY ROAD                                              DETROIT                MI       48228
  6606                    16862 SCHAEFER                                              DETROIT                MI       48235
  6607                    4919 CLIO ROAD                                              FLINT                  MI       48504
  6681                    1968 PIPESTONE                                              BENTON HARBOR          MI       49022
  6683                    2032 E. EIGHT MILE ROAD                                     DETROIT                MI       48234
  6684                    3610 FORT STREET                                            LINCOLN PARK           MI       48146
  6686                    3415 E GENESSEE                                             SAGINAW                MI       48601
  6764                    13316 E. JEFFERSON                                          DETROIT                MI       48215
  6611                    2746 CHEROKEE                                               ST LOUIS               MO       63118
  6687                    57 N. FLORISSANT                                            FERGUSON               MO       63135
  6765                    2049 MCLARAN                                                JENNINGS               MO       63136
  6610                    5231-5235 DELMAR                                            ST LOUIS               MO       63108
  6789                    4300 NORTH STATE ST.                                        JACKSON                MS       39206
  6559                    122 Mulberry St                                             LENIOR                 NC       28645
  6570                    1301B WARD BLVD                                             WILSON                 NC       27893
  6571                    6468 YADKIN ROAD                                            FAYETTEVILLE           NC       28303
  6572                    1300-D PATTON AVENUE                                        ASHEVILLE              NC       28806
  6682                    1608 SPRING GARDEN ST.                                      GREENSBORO             NC       27403
  6691                    1100 NORTH MIAMI BLVD.                                      DURHAM                 NC       27703
  6692                    207 SKYLAND PLAZA                                           SPRING LAKE            NC       28390
  6693                    2879 OWEN DRIVE                                             FAYETTEVILLE           NC       28306
  6694                    1100 RALEIGH BLVD.                                          RALEIGH                NC       27610
  6695                    4532 CAPITAL BLVD.                                          RALEIGH                NC       27604
  6696                    1201 HARGETT STREET, SUITE A                                JACKSONVILLE           NC       28540
  6697                    1528 E MEMORIAL DRIVE UNIT #04                              AHOSKIE                NC       27910
  6698                    735 E. DIXON BLVD                                           SHELBY                 NC       28152
  6768                    3915 RAMSEY STREET STE. 104                                 FAYETTEVILLE           NC       28311
  6587                    1503 E LIVINGSTON AVENUE                                    Columbus               OH       43205
  6588                    2147 EAKIN RD                                               Columbus               OH       43223
                          4925 JACKMAN RD, #30
  6589                    MIRACLE MILE SHOPPING CENTER                                Toledo                 OH       43613
  6590                    10626 LORAIN AVE                                            Cleveland              OH       44111
  6591                    13501 EUCLID AVENUE                                         E. Cleveland           OH       44112
  6592                    5488 BROADWAY AVE                                           Cleveland              OH       44127
  6593                    1400 S. ARLINGTON #18                                       Akron                  OH       44306
</Table>

<PAGE>

ACE CASH EXPRESS, INC.
SSM LOCATIONS FY03

SSM SCHEDULE --- DZ BANK LOCATIONS

<Table>
<Caption>
CENTER #                  H&R BLOCK OFFICE ADDRESS                                    CITY                   STATE  OFFICE ZIP
--------                  ------------------------                                    ----                   -----  ----------
<S>                       <C>                                                         <C>                    <C>    <C>
  6699                    3737 SOUTH HIGH ST.                                         COLUMBUS               OH       43207
  6700                    1202 30TH ST N.W.                                           CANTON                 OH       44709
  6701                    3816-B W. TUSCARAWAS                                        CANTON                 OH       44708
  6702                    370 E STATE ST                                              ALLIANCE               OH       44601
  6703                    707 N. CABLE SUITE D                                        LIMA                   OH       45805
  6704                    2100 HARDING HWY                                            LIMA                   OH       45804
  6705                    1065 BECHTLE AVE.                                           SPRINGFIELD            OH       45504
  6706                    4237 FULTON ROAD                                            CLEVELAND              OH       44144
  6708                    16716 CHAGRIN BLVD.                                         SHAKER HEIGHTS         OH       44120
  6710                    15501 EUCLID AVE.                                           E. CLEVELAND           OH       44112
  6711                    4000 GLENWAY AVE.                                           CINCINNATI             OH       45205
  6712                    3350 CLEVELAND AVE                                          COLUMBUS               OH       43224
  6714                    1651 N. MEMORIAL DRIVE                                      LANCASTER              OH       43130
  6715                    22354 LAKE SHORE BLVD                                       EUCLID                 OH       44123
  6716                    613 E. CENTER STREET                                        MARION                 OH       43302
  6769                    2590 DIXIE HWY.                                             HAMILTON               OH       45015
  6770                    836 GALLIA STREET                                           PORTSMOUTH             OH       45662
  6771                    2710 MARKET STREET                                          YOUNGSTOWN             OH       44507
  6772                    4554 MONTGOMERY ROAD                                        NORWOOD                OH       45212
  6562                    101 N 8TH ST                                                Allentown              PA       18101
  6774                    2935 NORTH 7TH STREET                                       HARRISBURG             PA       17110
  6787                    1259 WHITEHALL MALL                                         WHITEHALL              PA       18052
  6579                    3302 GALLATIN ROAD                                          Nashville              TN       37216
  6580                    4616 ROSSVILLE BLVD                                         CHATTANOOGA            TN       37407
  6581                    292 N. CLEVELAND                                            Memphis                TN       38104
  6582                    3180 N. THOMAS                                              Memphis                TN       38107
  6583                    1891 SOUTH THIRD                                            Memphis                TN       38109
  6584                    2721 PERKINS                                                Memphis                TN       38118
  6622                    1590 FT. CAMPBELL BLVD.                                     CLARKSVILLE            TN       37042
  6642                    800 NW BROAD ST.                                            MURFREESBORO           TN       37130
  6717                    201 KEITH STREET                                            CLEVELAND              TN       37311
  6718                    6654 CHARLOTTE PIKE                                         NASHVILLE              TN       37209
  6719                    2941 NOLENSVILLE ROAD                                       NASHVILLE              TN       37211
  6720                    4735 HIGHWAY 58                                             CHATTANOOGA            TN       37416
  6721                    4805 N BROADWAY, SUITE 103                                  KNOXVILLE              TN       37918
  6722                    4226 ASHEVILLE HWY.                                         KNOXVILLE              TN       37924
  6723                    4409-B CHAPMAN HWY                                          KNOXVILLE              TN       37920
  6724                    1035 S. RIVERSIDE DRIVE                                     CLARKSVILLE            TN       37040
  6725                    3435 AUSTIN PEAY HWY.                                       MEMPHIS                TN       38128
  6750                    113 E. WOOD ST.                                             PARIS                  TN       38242
  6775                    291 N LOWREY STREET                                         SMYRNA                 TN       37167
  6776                    917 8TH AVENUE SOUTH                                        NASHVILLE              TN       37203
  6777                    170 CALDERWOOD STREET                                       ALCOA                  TN       37701
  6778                    158 WOODMERE MALL                                           CROSSVILLE             TN       38555
  6779                    308 N. FAIRMONT                                             MORRISTOWN             TN       37814
  6784                    1200 SOUTHLAND MALL                                         MEMPHIS                TN       38116
  6801                    3095-B FT CAMPBELL BLVD                                     CLARKESVILLE           TN       37042
  6731                    163 ELECTRIC ROAD                                           SALEM                  VA       24153
  6732                    2323 MEMORIAL AVE. #11 A-B                                  LYNCHBURG              VA       24501
  6791                    144 EAST LITTLE CREEK RD.                                   NORFOLK                VA       23505
  6802                    3115 MECHANICSVILLE PIKE                                    RICHMOND               VA       23224
  6557                    5209 W FOND DU LAC                                          MILWAUKEE              WI       53216
</Table>

<PAGE>

ACE CASH EXPRESS, INC.
SSM LOCATIONS FY03

SSM SCHEDULE --- DZ BANK LOCATIONS

<Table>
<Caption>
CENTER #                  H&R BLOCK OFFICE ADDRESS                                    CITY                   STATE  OFFICE ZIP
--------                  ------------------------                                    ----                   -----  ----------
<S>                       <C>                                                         <C>                    <C>    <C>
  6558                    1842 SOUTH 15TH ST.                                         MILWAUKEE              WI       53215
  6609                    1201 N. 35TH ST                                             MILWAUKEE              WI       53208
</Table>

<PAGE>
                                                                    SCHEDULE III

ACE CASH EXPRESS, INC.
SSM LOCATIONS FY03

EXCLUDED SSMS ---TEXAS CAPITAL BANK LOCATIONS

<Table>
<Caption>
    CENTER #     H&R BLOCK OFFICE ADDRESS                      CITY                         STATE         OFFICE ZIP
    --------     ------------------------                      ----                         -----         ----------
<S>              <C>                                           <C>                          <C>           <C>
      6615       3750 WEST MCDOWELL                            PHOENIX                      AZ              85009
      6616       5127 W Indian School Rd                       PHOENIX                      AZ              85031
      6617       5851 SO CENTRAL                               PHOENIX                      AZ              85040
      6632       657 WEST VALENCIA ROAD                        TUCSON                       AZ              85706
      6633       7342 W. INDIAN SCHOOL RD.                     PHOENIX                      AZ              85033
      6734       1062 N ARIZONA AVE                            CHANDLER                     AZ              85225
      6735       114 WEST 2ND STREET                           CASA GRANDE                  AZ              85222
      6736       4337 W BETHANY HOME RD.                       GLENDALE                     AZ              85301
      6511       2200 Columbus St                              Bakersfield                  CA              93305
      6512       2512 Wilson Road                              Bakersfield                  CA              93304
      6513       920 CHESTER AVE.                              Bakersfield                  CA              93301
      6514       2437 NORTHGATE BLVD                           SACRAMENTO                   CA              95833
      6515       5211 Fruitridge Road                          SACRAMENTO                   CA              95820
      6516       6622 Florin Rd                                SACRAMENTO                   CA              95828
      6518       5723 Watt Ave                                 NORTH HIGHLANDS              CA              95660
      6521       12 W Main St                                  Merced                       CA              95340
      6526       14210 E. 14TH ST.                             SAN LEANDRO                  CA              94578
      6528       397 W. Highland Ave.                          SAN BERNARDINO               CA              92404
      6529       9810 Sierra Ave # F                           Fontana                      CA              92335
      6530       12901 HAWTHORNE BLVD                          HAWTHORNE                    CA              90250
      6531       4520 ATLANTIC AVE                             Long Beach                   CA              90807
      6533       891 N GAREY AVE                               POMONA                       CA              91768
      6534       2307 Oakdale Rd Bldg #8, Ste. #2              MODESTO                      CA              95355
      6535       519 N GOLDEN STATE BLVD                       TURLOCK                      CA              95380
      6548       3834 La Sierra Ave                            Riverside                    CA              92505
      6561       4243 EL CAJON BLVD.                           San Diego                    CA              92105
      6618       3020 S. FIGUEROA STREET                       LOS ANGELES                  CA              90007
      6619       4855 W. PICO BLVD                             LOS ANGELES                  CA              90019
      6620       515 E MANCHESTER BLVD                         INGLEWOOD                    CA              90301
      6621       2620 LONG BEACH BLVD                          Long Beach                   CA              90806
      6623       3580 M SANTA ANITA                            EL MONTE                     CA              91732
      6624       1181 PALM AVE                                 IMPERIAL BEACH               CA              91932
      6625       1829 S. COAST HIGHWAY                         Oceanside                    CA              92054
      6626       1762 N EUCLID AVE                             San Diego                    CA              92105
      6627       3250 E TULARE AVENUE                          Fresno                       CA              93702
      6628       353 W. CHARTER WAY, SUITE C                   STOCKTON                     CA              95206
      6629       10331 FOLSOM BLVD.                            RANCHO CORDOVA               CA              95670
      6634       1801 NILES ST                                 BAKERSFIELD                  CA              93305
      6635       1215-B OLIVE DRIVE                            BAKERSFIELD                  CA              93308
      6636       1446 N. HUNTER ST.                            STOCKTON                     CA              95202
      6637       1240 W REDONDO BEACH BLVD                     GARDENA                      CA              90247
      6639       43537 13TH STREET WEST                        LANCASTER                    CA              93534
      6737       4049 N. BLACKSTONE #101                       FRESNO                       CA              93726
      6738       3447 WATT AVE.                                SACRAMENTO                   CA              95821
      6739       1939 ALUM ROCK, #C                            SAN JOSE                     CA              95116
      6741       5534 E. WHITTIER BLVD #C                      CITY OF COMMERCE             CA              90022
</Table>

<PAGE>

<Table>
<Caption>
    CENTER #     H&R BLOCK OFFICE ADDRESS                      CITY                         STATE         OFFICE ZIP
    --------     ------------------------                      ----                         -----         ----------
<S>              <C>                                           <C>                          <C>           <C>
      6742       2111 W. SUNSET BLVD.                          LOS ANGELES                  CA              90026
      6743       509/511 SWEETWATER ROAD                       SPRING VALLEY                CA              91977
      6745       9116 FOOTHILL BLVDE. #114                     RANCHO CUCAMONGA             CA              91730
      6746       2085 W. SHAW, #105                            FRESNO                       CA              93711
      6803       14519 VANOWEN ST                              VAN NUYS                     CA              91405
      6804       5095 TELEGRAPH AVE                            OAKLAND                      CA              94609
      6805       849 JEFFERSON BLVD, STE. #102                 WEST SACRAMENTO              CA              95691
      6806       4300 SONOMA BLVD, STE. 108                    VALLEJO                      CA              94589
      6640       2919 & 2921 W. 38TH AVE.                      DENVER                       CO              80211
      6748       3123 SOUTH ACADEMY BLVD.                      COLORADO SPRINGS             CO              80916
      6670       2561 SOUTH SENECA, SUITE 30                   WICHITA                      KS              67217
      6760       7616-18 STATE AVE                             KANSAS CITY                  KS              66112
      6612       7446 N 30 ST                                  OMAHA                        NE              68112
      6688       2601 CORNHUSKER AVE.                          SOUTH SIOUX CITY             NE              68776
      6689       2365 O STREET                                 LINCOLN                      NE              68510
      6690       2219 ODDIE BLVD                               SPARKS                       NV              89431
      6766       1025 S. WELLS AVE.                            RENO                         NV              89502
      6767       1426 EAST WILLIAM ST.                         CARSON CITY                  NV              89701
      6788       3450 S. MARYLAND PKWY./BLVD. M                LAS VEGAS                    NV              89109
      6792       2105 CIVIC CENTER DR.                         N. LAS VEGAS                 NV              89030
      6507       3200 SOUTH LANCASTER, #156A                   DALLAS                       TX              75216
      6549       5411 E Lancaster                              FT Worth                     TX              76112
      6553       1904 Martin L. King Blvd.                     DALLAS                       TX              75227
      6554       2223 S. BUCKNER #237                          DALLAS                       TX              75227
      6555       270 WYNNEWOOD VILLAGE                         DALLAS                       TX              75224
      6726       8458 CAMP BOWIE WEST                          FORT WORTH                   TX              76116
      6727       6246-A MCCART STREET                          FORT WORTH                   TX              76133
      6728       6738-C LAKE WORTH BLVD.                       LAKE WORTH                   TX              76135
      6729       1221 W. AIRPORT FWY. #115                     IRVING                       TX              75062
      6730       809 E BERRY                                   FORT WORTH                   TX              76104
      6780       315 N HIGH                                    LONGVIEW                     TX              75601
      6781       1809 W. LOOP 281 #114                         LONGVIEW                     TX              75604
      6782       5038 MONTANA                                  EL PASO                      TX              79903
      6783       1307 E 8TH STREET                             ODESSA                       TX              79761
      6793       2310 GUADALUPE ST.                            LAREDO                       TX              78043
      6794       512 W. STASSNEY, STE. 112                     AUSTIN                       TX              78745
      6795       925B HIGHWAY 80                               SAN MARCOS                   TX              78666
      6796       1130 W. DALLAS ST.                            CONROE                       TX              77301
      6797       2313 N. ALEXANDER                             BAYTOWN                      TX              77520
      6798       1501 SAN BERNARDO                             LAREDO                       TX              78041
      6800       2639 S. HAMPTON RD.                           DALLAS                       TX              75224
</Table>
<PAGE>

                                   SCHEDULE IV

                             INSURANCE REQUIREMENTS

1.       Required Theft/Loss Insurance Protection

<Table>
<Caption>
                         Required Theft/Loss*
SSM Type                 Insurance Protection
--------                 --------------------
<S>                      <C>
Diebold SSMs               $300,000 per SSM
Source SSMs                $300,000 per SSM
</Table>

* Minimum acceptable Theft/Loss coverage

2.       Required Errors and Omissions Insurance

                  Minimum Coverage: $2,000,000

3.       Required Fidelity Insurance

                  Minimum Coverage:  $2,000,000

<PAGE>
                                                                     Schedule V

ACE CASH EXPRESS, INC.
SSM LOCATIONS FY03

DZ BANK LOCATIONS
<Table>
<Caption>
                                                                                                                               CHECK
   CENTER #    H&R BLOCK OFFICE ADDRESS                            CITY                           STATE           OFFICE ZIP   FEE %
   --------    ------------------------                            ----                           -----           ----------   -----
<S>            <C>                                                 <C>                            <C>             <C>          <C>
     6630      1708 COGSWELL AVE.                                  PELL CITY                      AL                35125      *%
     6631      1616 TOWN SQUARE SW                                 CULLMAN                        AL                35055      *%
     6733      1516 QUINTARD AVE.                                  ANNISTON                       AL                36201      *%
     6614      210 SHOPPINGWAY BLVD.                               WEST MEMPHIS                   AR                72301      *%
     6537      90 EAST MAIN ST                                     NEW BRITAIN                    CT                06051      *%
     6538      593 Farmington Ave., #F                             Hartford                       CT                06106      *%
     6541      1548 BENNING ROAD                                   Washington                     DC                20002      *%
     6542      4059 MINNESOTA AVE. NE                              Washington                     DC                20019      *%
     6577      150 EAST 1ST AVENUE                                 Miami                          FL                33010      *%
     6578      6120 NW 7TH AVE.                                    Miami                          FL                33127      *%
     6643      1150 NORTH MAIN                                     GAINESVILLE                    FL                32601      *%
     6644      4901 PALM BEACH BLVD                                FORT MYERS                     FL                33905      *%
     6645      13 EAST JEFFERSON ST.                               QUINCY                         FL                32351      *%
     6647      5751 N. MAIN STREET                                 JACKSONVILLE                   FL                32208      *%
     6648      6733-2 103RD STREET                                 JACKSONVILLE                   FL                32210      *%
     6649      2261-3 EDGEWOOD AVE W.                              JACKSONVILLE                   FL                32209      *%
     6751      3228 SW 35 BLVD.                                    GAINESVILLE                    FL                32608      *%
     6785      20505 S. DIXIE HIGHWAY                              CUTLER RIDGE                   FL                33189      *%
     6786      1801 PALM BEACH LAKES BLVD.                         WEST PALM BEACH                FL                33401      *%
     6573      3197 GLENWOOD RD                                    Decatur                        GA                30032      *%
     6574      1157 Ralph D. Abernathy Blvd. SW                    Atlanta                        GA                30310      *%
     6575      5195 OLD NATIONAL HWY.                              Atlanta                        GA                30349      *%
     6576      1909 E. VICTORY DRIVE                               Savannah                       GA                31405      *%
     6650      112 E. BROUGHTON STREET                             SAVANNAH                       GA                31401      *%
     6660      1100 EISENHOWER DR. EISEN SQ.                       SAVANNAH                       GA                31406      *%
     6661      2685 METROPOLITAN PARKWAY                           ATLANTA                        GA                30315      *%
     6662      2636-4 MARTIN LUTHER KING, JR                       ATLANTA                        GA                30311      *%
     6663      531-533 MORELAND AVE                                ATLANTA                        GA                30316      *%
     6664      5306 MEMORIAL DRIVE                                 STONE MOUNTAIN                 GA                30083      *%
     6665      4729 MEMORIAL DRIVE                                 DECATUR                        GA                30032      *%
     6666      1745 HWY 138 SPACE A-6                              CONYERS                        GA                30013      *%
     6667      6067 OLD NATIONAL HIGHWAY                           COLLEGE PARK                   GA                30349      *%
     6752      2466 MEMORIAL DRIVE                                 WAYCROSS                       GA                31503      *%
     6753      8489 HOSPITAL DRIVE                                 DOUGLASVILLE                   GA                30134      *%
     6754      4693 JONESBORO RD.                                  FOREST PARK                    GA                30297      *%
     6756      2375 WESLEY CHAPEL RD.                              DECATUR                        GA                30035      *%
     6757      1289-A COLUMBIA DRIVE                               DECATUR                        GA                30032      *%
     6608      925 PIERCE STREET                                   Sioux City                     IA                51101      *%
     6594      2900 SOUTHEASTERN AVE.                              INDIANAPOLIS                   IN                46203      *%
     6668      5111 W. WASHINGTON ST.                              INDIANAPOLIS                   IN                46241      *%
     6669      1349 COVERT AVE.                                    EVANSVILLE                     IN                47714      *%
     6679      828 W. MCKINLEY AVE.                                MISHAWAKA                      IN                46545      *%
     6759      4755 POST RD.                                       INDIANAPOLIS                   IN                46226      *%
     6790      5390 BROADWAY                                       MERRILLVILLE                   IN                46410      *%
     6560      2600 W BROADWAY                                     LOUISVILLE                     KY                40211      *%
     6585      612 WEST BROADWAY                                   LOUISVILLE                     KY                40202      *%
     6586      1777 MONMOUTH STREET                                Newport                        KY                41071      *%
     6671      800 MADISON AVE                                     COVINGTON                      KY                41011      *%
     6761      3178 DIXIE HWY                                      ERLANGER                       KY                41018      *%
     6613      2353 ST CLAUDE ST.                                  NEW ORLEANS                    LA                70117      *%
     6672      117 MACARTHUR DRIVE                                 ALEXANDRIA                     LA                71303      *%
     6673      5151 PLANK ROAD                                     BATON ROUGE                    LA                70805      *%
     6674      246 MAIN STREET                                     BAKER                          LA                70714      *%
</Table>

* Confidential treatment has been requested for certain portions of this
document pusuant to an application for confidential treatment sent to the SEC.
Such portions are omitted from this filing and filed separately with the SEC.
<PAGE>

<Table>
<S>            <C>                                                 <C>                            <C>             <C>          <C>
     6675      1602 S. RUTH STREET                                 SULPHUR                        LA                70663      *%
     6676      2135 CATON ST.                                      NEW ORLEANS                    LA                70122      *%
     6677      6003 BULLARD AVE., SUITE 6                          NEW ORLEANS                    LA                70128      *%
     6678      3939 TULANE AVENUE                                  NEW ORLEANS                    LA                70119      *%
     6680      809 SOUTH SALISBURY BLVD                            SALISBURY                      MD                21801      *%
     6595      21500 NORTHWESTERN HWY., STE. 519                   SOUTHFIELD                     MI                48075      *%
     6596      7549 E 9 MILE RD                                    WARREN                         MI                48091      *%
     6597      SOUTHLD CTR. 23000 EUREKA RD.                       TAYLOR                         MI                48180      *%
     6598      12895 WOODWARD                                      HIGHLAND PARK                  MI                48203      *%
     6599      10765 GRAND RIVER                                   DETROIT                        MI                48204      *%
     6600      13032 GRATIOT                                       DETROIT                        MI                48205      *%
     6601      14418 GRATIOT                                       DETROIT                        MI                48205      *%
     6602      10017 JOSEPH CAMPAU                                 HAMTRAMCK                      MI                48212      *%
     6603      20200 W. 7 MILE                                     DETROIT                        MI                48219      *%
     6604      18000 VERNIER                                       HARPER WOODS                   MI                48225      *%
     6605      15570 JOY ROAD                                      DETROIT                        MI                48228      *%
     6606      16862 SCHAEFER                                      DETROIT                        MI                48235      *%
     6607      4919 CLIO ROAD                                      FLINT                          MI                48504      *%
     6681      1968 PIPESTONE                                      BENTON HARBOR                  MI                49022      *%
     6683      2032 E. EIGHT MILE ROAD                             DETROIT                        MI                48234      *%
     6684      3610 FORT STREET                                    LINCOLN PARK                   MI                48146      *%
     6686      3415 E GENESSEE                                     SAGINAW                        MI                48601      *%
     6764      13316 E. JEFFERSON                                  DETROIT                        MI                48215      *%
     6611      2746 CHEROKEE                                       ST LOUIS                       MO                63118      *%
     6687      57 N. FLORISSANT                                    FERGUSON                       MO                63135      *%
     6765      2049 MCLARAN                                        JENNINGS                       MO                63136      *%
     6610      5231-5235 DELMAR                                    ST LOUIS                       MO                63108      *%
     6789      4300 NORTH STATE ST.                                JACKSON                        MS                39206      *%
     6559      122 Mulberry St                                     LENIOR                         NC                28645      *%
     6570      1301B WARD BLVD                                     WILSON                         NC                27893      *%
     6571      6468 YADKIN ROAD                                    FAYETTEVILLE                   NC                28303      *%
     6572      1300-D PATTON AVENUE                                ASHEVILLE                      NC                28806      *%
     6682      1608 SPRING GARDEN ST.                              GREENSBORO                     NC                27403      *%
     6691      1100 NORTH MIAMI BLVD.                              DURHAM                         NC                27703      *%
     6692      207 SKYLAND PLAZA                                   SPRING LAKE                    NC                28390      *%
     6693      2879 OWEN DRIVE                                     FAYETTEVILLE                   NC                28306      *%
     6694      1100 RALEIGH BLVD.                                  RALEIGH                        NC                27610      *%
     6695      4532 CAPITAL BLVD.                                  RALEIGH                        NC                27604      *%
     6696      1201 HARGETT STREET, SUITE A                        JACKSONVILLE                   NC                28540      *%
     6697      1528 E MEMORIAL DRIVE UNIT #04                      AHOSKIE                        NC                27910      *%
     6698      735 E. DIXON BLVD                                   SHELBY                         NC                28152      *%
     6768      3915 RAMSEY STREET STE. 104                         FAYETTEVILLE                   NC                28311      *%
     6587      1503 E LIVINGSTON AVENUE                            Columbus                       OH                43205      *%
     6588      2147 EAKIN RD                                       Columbus                       OH                43223      *%
     6589      4925 JACKMAN RD, #30                                Toledo                         OH                43613      *%
     6590      10626 LORAIN AVE                                    Cleveland                      OH                44111      *%
     6591      13501 EUCLID AVENUE                                 E. Cleveland                   OH                44112      *%
     6592      5488 BROADWAY AVE                                   Cleveland                      OH                44127      *%
     6593      1400 S. ARLINGTON #18                               Akron                          OH                44306      *%
     6699      3737 SOUTH HIGH ST.                                 COLUMBUS                       OH                43207      *%
     6700      1202 30TH ST N.W.                                   CANTON                         OH                44709      *%
     6701      3816-B W. TUSCARAWAS                                CANTON                         OH                44708      *%
     6702      370 E STATE ST                                      ALLIANCE                       OH                44601      *%
     6703      707 N. CABLE SUITE D                                LIMA                           OH                45805      *%
     6704      2100 HARDING HWY                                    LIMA                           OH                45804      *%
     6705      1065 BECHTLE AVE.                                   SPRINGFIELD                    OH                45504      *%
     6706      4237 FULTON ROAD                                    CLEVELAND                      OH                44144      *%
     6708      16716 CHAGRIN BLVD.                                 SHAKER HEIGHTS                 OH                44120      *%
</Table>

* Confidential treatment has been requested for certain portions of this
document pusuant to an application for confidential treatment sent to the SEC.
Such portions are omitted from this filing and filed separately with the SEC.
<PAGE>

<Table>
<S>            <C>                                                 <C>                            <C>             <C>          <C>
     6710      15501 EUCLID AVE.                                   E. CLEVELAND                   OH                44112      *%
     6711      4000 GLENWAY AVE.                                   CINCINNATI                     OH                45205      *%
     6712      3350 CLEVELAND AVE                                  COLUMBUS                       OH                43224      *%
     6714      1651 N. MEMORIAL DRIVE                              LANCASTER                      OH                43130      *%
     6715      22354 LAKE SHORE BLVD                               EUCLID                         OH                44123      *%
     6716      613 E. CENTER STREET                                MARION                         OH                43302      *%
     6769      2590 DIXIE HWY.                                     HAMILTON                       OH                45015      *%
     6770      836 GALLIA STREET                                   PORTSMOUTH                     OH                45662      *%
     6771      2710 MARKET STREET                                  YOUNGSTOWN                     OH                44507      *%
     6772      4554 MONTGOMERY ROAD                                NORWOOD                        OH                45212      *%
     6562      101 N 8TH ST                                        Allentown                      PA                18101      *%
     6774      2935 NORTH 7TH STREET                               HARRISBURG                     PA                17110      *%
     6787      1259 WHITEHALL MALL                                 WHITEHALL                      PA                18052      *%
     6579      3302 GALLATIN ROAD                                  Nashville                      TN                37216      *%
     6580      4616 ROSSVILLE BLVD                                 CHATTANOOGA                    TN                37407      *%
     6581      292 N. CLEVELAND                                    Memphis                        TN                38104      *%
     6582      3180 N. THOMAS                                      Memphis                        TN                38107      *%
     6583      1891 SOUTH THIRD                                    Memphis                        TN                38109      *%
     6584      2721 PERKINS                                        Memphis                        TN                38118      *%
     6622      1590 FT. CAMPBELL BLVD.                             CLARKSVILLE                    TN                37042      *%
     6642      800 NW BROAD ST.                                    MURFREESBORO                   TN                37130      *%
     6717      201 KEITH STREET                                    CLEVELAND                      TN                37311      *%
     6718      6654 CHARLOTTE PIKE                                 NASHVILLE                      TN                37209      *%
     6719      2941 NOLENSVILLE ROAD                               NASHVILLE                      TN                37211      *%
     6720      4735 HIGHWAY 58                                     CHATTANOOGA                    TN                37416      *%
     6721      4805 N BROADWAY, SUITE 103                          KNOXVILLE                      TN                37918      *%
     6722      4226 ASHEVILLE HWY.                                 KNOXVILLE                      TN                37924      *%
     6723      4409-B CHAPMAN HWY                                  KNOXVILLE                      TN                37920      *%
     6724      1035 S. RIVERSIDE DRIVE                             CLARKSVILLE                    TN                37040      *%
     6725      3435 AUSTIN PEAY HWY.                               MEMPHIS                        TN                38128      *%
     6750      113 E. WOOD ST.                                     PARIS                          TN                38242      *%
     6775      291 N LOWREY STREET                                 SMYRNA                         TN                37167      *%
     6776      917 8TH AVENUE SOUTH                                NASHVILLE                      TN                37203      *%
     6777      170 CALDERWOOD STREET                               ALCOA                          TN                37701      *%
     6778      158 WOODMERE MALL                                   CROSSVILLE                     TN                38555      *%
     6779      308 N. FAIRMONT                                     MORRISTOWN                     TN                37814      *%
     6784      1200 SOUTHLAND MALL                                 MEMPHIS                        TN                38116      *%
     6801      3095-B FT CAMPBELL BLVD                             CLARKESVILLE                   TN                37042      *%
     6731      163 ELECTRIC ROAD                                   SALEM                          VA                24153      *%
     6732      2323 MEMORIAL AVE. #11 A-B                          LYNCHBURG                      VA                24501      *%
     6791      144 EAST LITTLE CREEK RD.                           NORFOLK                        VA                23505      *%
     6802      3115 MECHANICSVILLE PIKE                            RICHMOND                       VA                23224      *%
     6557      5209 W FOND DU LAC                                  MILWAUKEE                      WI                53216      *%
     6558      1842 SOUTH 15TH ST.                                 MILWAUKEE                      WI                53215      *%
     6609      1201 N. 35TH ST                                     MILWAUKEE                      WI                53208      *%
</Table>

Texas Capital Bank Locations

<Table>
<Caption>
   CENTER #    H&R BLOCK OFFICE ADDRESS                            CITY                           STATE           OFFICE ZIP
   --------    ------------------------                            ----                           -----           ----------
<S>            <C>                                                 <C>                            <C>             <C>          <C>
     6615      3750 WEST MCDOWELL                                  PHOENIX                        AZ                85009      *%
     6616      5127 W Indian School Rd                             PHOENIX                        AZ                85031      *%
     6617      5851 SO CENTRAL                                     PHOENIX                        AZ                85040      *%
     6632      657 WEST VALENCIA ROAD                              TUCSON                         AZ                85706      *%
     6633      7342 W. INDIAN SCHOOL RD.                           PHOENIX                        AZ                85033      *%
     6734      1062 N ARIZONA AVE                                  CHANDLER                       AZ                85225      *%
     6735      114 WEST 2ND STREET                                 CASA GRANDE                    AZ                85222      *%
     6736      4337 W BETHANY HOME RD.                             GLENDALE                       AZ                85301      *%
</Table>

* Confidential treatment has been requested for certain portions of this
document pusuant to an application for confidential treatment sent to the SEC.
Such portions are omitted from this filing and filed separately with the SEC.
<PAGE>

<Table>
<S>            <C>                                                 <C>                            <C>             <C>          <C>
     6511      2200 Columbus St                                    Bakersfield                    CA                93305      *%
     6512      2512 Wilson Road                                    Bakersfield                    CA                93304      *%
     6513      920 CHESTER AVE.                                    Bakersfield                    CA                93301      *%
     6514      2437 NORTHGATE BLVD                                 SACRAMENTO                     CA                95833      *%
     6515      5211 Fruitridge Road                                SACRAMENTO                     CA                95820      *%
     6516      6622 Florin Rd                                      SACRAMENTO                     CA                95828      *%
     6518      5723 Watt Ave                                       NORTH HIGHLANDS                CA                95660      *%
     6521      12 W Main St                                        Merced                         CA                95340      *%
     6526      14210 E. 14TH ST.                                   SAN LEANDRO                    CA                94578      *%
     6528      397 W. Highland Ave.                                SAN BERNARDINO                 CA                92404      *%
     6529      9810 Sierra Ave # F                                 Fontana                        CA                92335      *%
     6530      12901 HAWTHORNE BLVD                                HAWTHORNE                      CA                90250      *%
     6531      4520 ATLANTIC AVE                                   Long Beach                     CA                90807      *%
     6533      891 N GAREY AVE                                     POMONA                         CA                91768      *%
     6534      2307 Oakdale Rd Bldg #8, Ste. #2                    MODESTO                        CA                95355      *%
     6535      519 N GOLDEN STATE BLVD                             TURLOCK                        CA                95380      *%
     6548      3834 La Sierra Ave                                  Riverside                      CA                92505      *%
     6561      4243 EL CAJON BLVD.                                 San Diego                      CA                92105      *%
     6618      3020 S. FIGUEROA STREET                             LOS ANGELES                    CA                90007      *%
     6619      4855 W. PICO BLVD                                   LOS ANGELES                    CA                90019      *%
     6620      515 E MANCHESTER BLVD                               INGLEWOOD                      CA                90301      *%
     6621      2620 LONG BEACH BLVD                                Long Beach                     CA                90806      *%
     6623      3580 M SANTA ANITA                                  EL MONTE                       CA                91732      *%
     6624      1181 PALM AVE                                       IMPERIAL BEACH                 CA                91932      *%
     6625      1829 S. COAST HIGHWAY                               Oceanside                      CA                92054      *%
     6626      1762 N EUCLID AVE                                   San Diego                      CA                92105      *%
     6627      3250 E TULARE AVENUE                                Fresno                         CA                93702      *%
     6628      353 W. CHARTER WAY, SUITE C                         STOCKTON                       CA                95206      *%
     6629      10331 FOLSOM BLVD.                                  RANCHO CORDOVA                 CA                95670      *%
     6634      1801 NILES ST                                       BAKERSFIELD                    CA                93305      *%
     6635      1215-B OLIVE DRIVE                                  BAKERSFIELD                    CA                93308      *%
     6636      1446 N. HUNTER ST.                                  STOCKTON                       CA                95202      *%
     6637      1240 W REDONDO BEACH BLVD                           GARDENA                        CA                90247      *%
     6639      43537 13TH STREET WEST                              LANCASTER                      CA                93534      *%
     6737      4049 N. BLACKSTONE #101                             FRESNO                         CA                93726      *%
     6738      3447 WATT AVE.                                      SACRAMENTO                     CA                95821      *%
     6739      1939 ALUM ROCK, #C                                  SAN JOSE                       CA                95116      *%
     6741      5534 E. WHITTIER BLVD #C                            CITY OF COMMERCE               CA                90022      *%
     6742      2111 W. SUNSET BLVD.                                LOS ANGELES                    CA                90026      *%
     6743      509/511 SWEETWATER ROAD                             SPRING VALLEY                  CA                91977      *%
     6745      9116 FOOTHILL BLVDE. #114                           RANCHO CUCAMONGA               CA                91730      *%
     6746      2085 W. SHAW, #105                                  FRESNO                         CA                93711      *%
     6803      14519 VANOWEN ST                                    VAN NUYS                       CA                91405      *%
     6804      5095 TELEGRAPH AVE                                  OAKLAND                        CA                94609      *%
     6805      849 JEFFERSON BLVD, STE. #102                       WEST SACRAMENTO                CA                95691      *%
     6807      7604 PACIFIC AVE.                                   STOCKTON                       CA                95207      *%
     6640      2919 & 2921 W. 38TH AVE.                            DENVER                         CO                80211      *%
     6748      3123 SOUTH ACADEMY BLVD.                            COLORADO SPRINGS               CO                80916      *%
     6670      2561 SOUTH SENECA, SUITE 30                         WICHITA                        KS                67217      *%
     6760      7616-18 STATE AVE                                   KANSAS CITY                    KS                66112      *%
     6612      7446 N 30 ST                                        OMAHA                          NE                68112      *%
     6688      2601 CORNHUSKER AVE.                                SOUTH SIOUX CITY               NE                68776      *%
     6689      2365 O STREET                                       LINCOLN                        NE                68510      *%
     6690      2219 ODDIE BLVD                                     SPARKS                         NV                89431      *%
     6766      1025 S. WELLS AVE.                                  RENO                           NV                89502      *%
     6767      1426 EAST WILLIAM ST.                               CARSON CITY                    NV                89701      *%
     6788      3450 S. MARYLAND PKWY./BLVD. M                      LAS VEGAS                      NV                89109      *%
     6792      2105 CIVIC CENTER DR.                               N. LAS VEGAS                   NV                89030      *%
</Table>

* Confidential treatment has been requested for certain portions of this
document pusuant to an application for confidential treatment sent to the SEC.
Such portions are omitted from this filing and filed separately with the SEC.
<PAGE>

<Table>
<S>            <C>                                                 <C>                            <C>             <C>          <C>
     6507      3200 SOUTH LANCASTER, #156A                         DALLAS                         TX                75216      *%
     6549      5411 E Lancaster                                    FT Worth                       TX                76112      *%
     6553      1904 Martin L. King Blvd.                           DALLAS                         TX                75227      *%
     6554      2223 S. BUCKNER #237                                DALLAS                         TX                75227      *%
     6555      270 WYNNEWOOD VILLAGE                               DALLAS                         TX                75224      *%
     6726      8458 CAMP BOWIE WEST                                FORT WORTH                     TX                76116      *%
     6727      6246-A MCCART STREET                                FORT WORTH                     TX                76133      *%
     6728      6738-C LAKE WORTH BLVD.                             LAKE WORTH                     TX                76135      *%
     6729      1221 W. AIRPORT FWY. #115                           IRVING                         TX                75062      *%
     6730      809 E BERRY                                         FORT WORTH                     TX                76104      *%
     6780      315 N HIGH                                          LONGVIEW                       TX                75601      *%
     6781      1809 W. LOOP 281 #114                               LONGVIEW                       TX                75604      *%
     6782      5038 MONTANA                                        EL PASO                        TX                79903      *%
     6783      1307 E 8TH STREET                                   ODESSA                         TX                79761      *%
     6793      2310 GUADALUPE ST.                                  LAREDO                         TX                78043      *%
     6794      512 W. STASSNEY, STE. 112                           AUSTIN                         TX                78745      *%
     6795      925B HIGHWAY 80                                     SAN MARCOS                     TX                78666      *%
     6796      1130 W. DALLAS ST.                                  CONROE                         TX                77301      *%
     6797      2313 N. ALEXANDER                                   BAYTOWN                        TX                77520      *%
     6798      1501 SAN BERNARDO                                   LAREDO                         TX                78041      *%
     6800      2639 S. HAMPTON RD.                                 DALLAS                         TX                75224      *%

     6749      122 N. BEACH STREET                                 DAYTONA BEACH                  FL                32114      *%
     6755      1552 RIVERSTONE PKWY., #140                         CANTON                         GA                30114      *%
     6758      400 EAST 2ND AVE.                                   ROME                           GA                30161      *%
     6763      123 N. CRAIN HWY. SUITE B                           GLEN BURNIE                    MD                21061      *%
     6773      4005 E. BROAD STREET                                WHITEHALL                      OH                43213      *%
</Table>

* Confidential treatment has been requested for certain portions of this
document pusuant to an application for confidential treatment sent to the SEC.
Such portions are omitted from this filing and filed separately with the SEC.
<PAGE>

                                                                    EXHIBIT 2.01
                                                                    FORM OF NOTE

                                      NOTE

$190,000,000                                                   December 18, 2002

         FOR VALUE RECEIVED, the undersigned, ACE FUNDING LLC, (the "Borrower"),
hereby promises to pay to the order of AUTOBAHN FUNDING COMPANY LLC (the
"Lender"), on or before the Maturity Date (as defined in the Loan and Servicing
Agreement referred to below), the principal amount of ONE HUNDRED AND NINETY
MILLION DOLLARS ($190,000,000), or, if less, the aggregate unpaid principal
amount of all of the Loans (as defined in the Loan and Servicing Agreement,
dated as of December 18, 2002 , among the Borrower, the Lender, ACE Cash
Express, Inc., in its individual capacity and as Check-Casher, DZ Bank AG
Deutsche Zentral-Genossenschaftsbank, as Administrative Agent and as Liquidity
Agent and U.S. Bank National Association, as Collateral Agent; as the same may
be amended, modified or supplemented from time to time, the "Loan and Servicing
Agreement") made by the Lender to the Borrower pursuant to the Loan and
Servicing Agreement (as shown in the records of the Administrative Agent or, at
the Administrative Agent's option, on Schedule I attached hereto and any
continuation thereof). Each Loan shall be payable from time to time in amounts
as provided in the Loan and Servicing Agreement, and in any event shall be
payable on the Maturity Date. Capitalized terms used but not defined herein have
the meanings provided in the Loan and Servicing Agreement.

         The undersigned also promises to pay interest on the unpaid principal
amount of each Loan evidenced by this Note from the date of such Loan until such
Loan is paid in full, payable at the rates and on the dates specified in the
Loan and Servicing Agreement.

         This Note evidences indebtedness incurred as Loans under, and is
entitled to the benefits of, the Loan and Servicing Agreement, to which Loan and
Servicing Agreement reference is hereby made for a statement of its terms and
conditions, including those under which the maturity of this Note may be
accelerated. Upon the occurrence of an Event of Default as specified in the Loan
and Servicing Agreement, the principal balance hereof and the interest accrued
hereon may be declared to be forthwith due and payable.

         This Note is secured by and entitled to the benefits specified in
Section 1.03 of the Loan and Servicing Agreement, and reference is hereby made
to such Section for a description of the nature and extent of the collateral and
the rights of the parties to and beneficiaries of the Loan and Servicing
Agreement in respect of such collateral.

<PAGE>

         In addition to and not in limitation of the foregoing and the
provisions of the Loan and Servicing Agreement, the undersigned further agrees,
subject only to any limitation imposed by applicable law, to pay on demand all
expenses, including reasonable attorneys' fees and legal expenses, incurred by
the holder of this Note in endeavoring to collect any amounts payable hereunder
which are not paid when due, whether by acceleration or otherwise.

         All parties hereto, whether as makers, endorsers, or otherwise,
severally waive presentment for payment, demand, protest and notice of dishonor.

         This Note shall be governed by and construed in accordance with the
laws of the State of New York (including Sections 5-1401 and 5-1402 of the
General Obligations Law of the State of New York, but otherwise without regard
to conflicts of law principles).

                  [Remainder of page intentionally left blank]

<PAGE>

         IN WITNESS WHEREOF, the Borrower has caused this instrument to be
signed, manually or in facsimile, by its duly authorized officer as of the date
above first written.

                                       ACE FUNDING LLC

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

<PAGE>

                                   SCHEDULE I

         Schedule attached to Note, dated December 18, 2002, of ACE FUNDING LLC
payable to the order of AUTOBAHN FUNDING COMPANY LLC.

<Table>
<Caption>
                                                                                    Principal
      Date of             Amount of                              Amount of            Amount            Notation
        Loan                Loan                Rate             Repayment         Outstanding           Made by
--------------------- ------------------ ------------------- ------------------ ------------------- ------------------
<S>                   <C>                <C>                 <C>                <C>                 <C>

</Table>

<PAGE>
                                                                 EXHIBIT 5.01(U)

                                 NON-NEGOTIABLE
                                    TERM NOTE

                                                               December 18, 2002

         FOR VALUE RECEIVED, the undersigned, ACE FUNDING LLC, a Delaware
limited liability company (the "Company"), promises to pay to ACE CASH EXPRESS,
INC., a Texas corporation ("ACE"), on the terms and subject to the conditions
set forth herein and in the Loan and Servicing Agreement referred to below, a
principal sum without interest of up to ONE MILLION NINE HUNDRED THOUSAND
DOLLARS ($1,900,000) (as such amount may be increased by borrowings hereunder
from time to time, reduced by any repayments hereunder and increased by
reborrowings hereunder, the "Principal Amount").

         1. Loan and Servicing Agreement. This Term Note is the Company Note
described in, and is subject to the terms and conditions set forth in, that
certain Loan and Servicing Agreement dated as of December 18, 2002, among ACE
Funding LLC, as Borrower, ACE Cash Express, Inc., in its individual capacity and
as Check-Casher, Autobahn Funding Company LLC, as Lender, DZ Bank AG Deutsche
Zentral-Genossenschaftsbank Frankfurt am Main, as Administrative Agent and as
Liquidity Agent, and U.S. Bank National Association, as Collateral Agent (as the
same may be amended, supplemented, amended and restated or otherwise modified in
accordance with its terms, the "Loan and Servicing Agreement"). Reference is
hereby made to the Loan and Servicing Agreement for a statement of certain other
rights and obligations of the Company and ACE.

         2. Definitions. Capitalized terms used but not defined herein have the
meanings provided in the Loan and Servicing Agreement. In addition, as used
herein, the following terms have the following meanings:

                  "Bankruptcy Proceedings" has the meaning set forth in clause
         (b) of paragraph 6 hereof.

                  "Final Maturity Date" means the the date that falls ten (10)
          Business Days after the Final Payout Date.

                  "Senior Interests" means, collectively and without
          duplication, (i) all amounts accrued in respect of the Loans, (ii) all
          amounts payable pursuant to Sections 3.03(d) and (e), 4.01, 4.02 and
          4.03 of the Loan and Servicing Agreement, and (iii) all other
          obligations of the Company and ACE that are due and payable to (a) the
          Lender, the Administrative Agent, the Liquidity Agent, the Collateral
          Agent, the other Secured Parties and their respective successors,
          permitted transferees and assigns arising in connection with the
          Transaction Documents and (b) any Indemnified Party arising in
          connection with the Loan and Servicing Agreement, in each case,
          howsoever created, arising or evidenced, whether direct or indirect,
          absolute or contingent, now or hereafter existing, or due or to become
          due, together with any and all interest accruing on any such amount
          after the commencement of any Bankruptcy Proceedings, notwithstanding
          any

<PAGE>

         provision or rule of law that might restrict the rights of any Senior
         Interest Holder, as against the Company or anyone else, to collect such
         interest.

                  "Senior Interest Holders" means, collectively, Lender, the
          Administrative Agent, the Liquidity Agent, the Collateral Agent, the
          Affected Parties, the Indemnified Parties and the other Secured
          Parties.

                  "Subordination Provisions" means, collectively, clauses (a)
         through (l) of paragraph 6 hereof.

         3. Principal Payment Dates. Subject to the Subordination Provisions set
forth below, payments of the principal amount of this Term Note shall be made as
follows:

                  (a) The entire Principal Amount shall be paid on the Final
         Maturity Date.

                  (b) Subject to the Subordination Provisions set forth below,
         the principal amount of this Term Note may be prepaid in whole or in
         part on any Business Day without premium or penalty.

         4. Payment Mechanics. All payments of principal hereunder are to be
made in lawful money of the United States of America.

         5. Enforcement Expenses. In addition to and not in limitation of the
foregoing, but subject to the Subordination Provisions set forth below and to
any limitation imposed by applicable law, the Company agrees to pay all
expenses, including reasonable attorneys' fees and legal expenses, incurred by
ACE in seeking to collect any amounts payable hereunder which are not paid when
due.

         6. Subordination Provisions. The Company covenants and agrees, and ACE
and any other holder of this Term Note (collectively, ACE and any such other
holder are called the "Holder"), by its acceptance of this Term Note, likewise
covenants and agrees on behalf of itself and any holder of this Term Note, that
the payment of the principal amount of this Term Note is hereby expressly
subordinated in right of payment to the payment and performance of the Senior
Interests to the extent and in the manner set forth in the following clauses of
this paragraph 9:

                  (a) No payment or other distribution of the Company's assets
         of any kind or character, whether in cash, securities, or other rights
         or property, shall be made on account of this Term Note except (i) to
         the extent such payment or other distribution is made pursuant to
         clause (a) of paragraph 6 of this Term Note, (ii) at any time during a
         Usage Period, the Company is permitted to pay and the Holder is
         permitted to receive principal payments in respect of this Term Note
         from funds received by Borrower in accordance with the priority of
         payments set forth in Section 3.03 of the Loan and Servicing Agreement,
         provided that, after giving effect to such payments, the outstanding
         principal balance on this Term Note will be not less than one percent
         (1%) of the outstanding Net Balance, and (iii) immediately following
         the end of a Usage Period, the Company is permitted to pay and the
         Holder is permitted to receive payments necessary to pay this Term Note
         in full from funds received by

                                       2
<PAGE>

         Borrower in accordance with the priority of payments set forth in
         Section 3.03 of the Loan and Servicing Agreement, provided that, the
         outstanding Loans have been paid in full.;

                  (b) In the event of any dissolution, winding up, liquidation,
         readjustment, reorganization or other similar event relating to the
         Company, whether voluntary or involuntary, partial or complete, and
         whether in bankruptcy, insolvency or receivership proceedings, or upon
         an assignment for the benefit of creditors, or any other marshalling of
         the assets and liabilities of the Company or any sale of all or
         substantially all of the assets of the Company (such proceedings being
         herein collectively called "Bankruptcy Proceedings"), the Senior
         Interests shall first be paid and performed in full and in cash before
         ACE shall be entitled to receive and to retain any payment or
         distribution in respect of this Term Note. In order to implement the
         foregoing: (i) all payments and distributions of any kind or character
         in respect of this Term Note to which Holder would be entitled except
         for this clause (b) shall be made directly to the Collateral Agent (for
         the benefit of the Senior Interest Holders); (ii) Holder shall promptly
         file a claim or claims, in the form required in any Bankruptcy
         Proceedings, for the full outstanding amount of this Term Note, and
         shall use commercially reasonable efforts to cause said claim or claims
         to be approved and all payments and other distributions in respect
         thereof to be made directly to the Collateral Agent (for the benefit of
         the Senior Interest Holders) until the Senior Interests shall have been
         paid and performed in full and in cash; and (iii) Holder hereby
         irrevocably agrees that the Collateral Agent, in the name of Holder or
         otherwise, may demand, sue for, collect, receive and receipt for any
         and all such payments or distributions, and file, prove and vote or
         consent in any such Bankruptcy Proceedings with respect to any and all
         claims of Holder relating to this Term Note, in each case until the
         Senior Interests shall have been paid and performed in full and in
         cash;

                  (c) In the event that Holder receives any payment or other
         distribution of any kind or character from the Company or from any
         other source whatsoever, in respect of this Term Note, other than as
         expressly permitted by the terms of this Term Note, such payment or
         other distribution shall be received in trust for the Senior Interest
         Holders and shall be turned over by Holder to the Collateral Agent (for
         the benefit of the Senior Interest Holders) forthwith. Holder will mark
         its books and records so as clearly to indicate that this Term Note is
         subordinated in accordance with the terms hereof. All payments and
         distributions received by the Collateral Agent in respect of this Term
         Note, to the extent received in or converted into cash, may be applied
         by the Collateral Agent (for the benefit of the Senior Interest
         Holders) first to the payment of any and all expenses (including
         reasonable attorneys' fees and legal expenses) paid or incurred by the
         Senior Interest Holders in enforcing these Subordination Provisions, or
         in endeavoring to collect or realize upon this Term Note, and any
         balance thereof shall, solely as between ACE and the Senior Interest
         Holders, be applied by the Collateral Agent (in the order of
         application set forth in Section 3.03 of the Loan and Servicing
         Agreement) toward the payment of the Senior Interests; but as between
         the Company and its creditors, no such payments or distributions of any
         kind or character shall be deemed to be payments or distributions in
         respect of the Senior Interests;

                  (d) Notwithstanding any payments or distributions received by
         the Senior Interest Holders in respect of this Term Note, while any
         Bankruptcy Proceedings are pending Holder

                                        3
<PAGE>

         shall not be subrogated to the then existing rights of the Senior
         Interest Holders in respect of the Senior Interests until the Senior
         Interests have been paid and performed in full and in cash. If no
         Bankruptcy Proceedings are pending, Holder shall only be entitled to
         exercise any subrogation rights that it may acquire by reason of a
         payment or distribution to the Senior Interest Holders in respect of
         this Term Note;

                  (e) These Subordination Provisions are intended solely for the
         purpose of defining the relative rights of Holder, on the one hand, and
         the Senior Interest Holders on the other hand. Nothing contained in
         these Subordination Provisions or elsewhere in this Term Note is
         intended to or shall impair, as between the Company, its creditors
         (other than the Senior Interest Holders) and Holder, the Company's
         obligation, which is unconditional and absolute, to pay Holder the
         principal of this Term Note as and when the same shall become due and
         payable in accordance with the terms hereof or to affect the relative
         rights of Holder and creditors of the Company (other than the Senior
         Interest Holders);

                  (f) Holder shall not, until the Senior Interests have been
         paid and performed in full and in cash, (i) cancel, waive, forgive, or
         commence legal proceedings to enforce or collect, or subordinate to any
         obligation of the Company, howsoever created, arising or evidenced,
         whether direct or indirect, absolute or contingent, or now or hereafter
         existing, or due or to become due, other than the Senior Interests,
         this Term Note or any rights in respect hereof, (ii) assign or transfer
         this Term Note or (iii) convert this Term Note into an equity interest
         in the Company, unless Holder shall have received the prior written
         consent of the Administrative Agent and the Lender in each case;

                  (g) Holder shall not, without the advance written consent of
         the Administrative Agent, the Collateral Agent and the Lender,
         commence, or join with any other Person in commencing, any Bankruptcy
         Proceedings with respect to the Company until at least one year and one
         day shall have passed since the Senior Interests shall have been paid
         and performed in full and in cash;

                  (h) If, at any time, any payment (in whole or in part) of any
         Senior Interest is rescinded or must be restored or returned by a
         Senior Interest Holder (whether in connection with Bankruptcy
         Proceedings or otherwise), these Subordination Provisions shall
         continue to be effective or shall be reinstated, as the case may be, as
         though such payment had not been made;

                  (i) Each of the Senior Interest Holders may, from time to
         time, at its sole discretion, without notice to Holder, and without
         waiving any of its rights under these Subordination Provisions, take
         any or all of the following actions: (i) retain or obtain an interest
         in any property to secure any of the Senior Interests; (ii) retain or
         obtain the primary or secondary obligations of any other obligor or
         obligors with respect to any of the Senior Interests; (iii) extend or
         renew for one or more periods (whether or not longer than the original
         period), alter or exchange any of the Senior Interests, or release or
         compromise any obligation of any nature with respect to any of the
         Senior Interests; (iv) amend, supplement, amend and restate, or
         otherwise modify any Transaction Document; and (v) release its security
         interest in, or surrender, release or permit any substitution or
         exchange for all or any

                                        4
<PAGE>

         part of any rights or property securing any of the Senior Interests, or
         extend or renew for one or more periods (whether or not longer than the
         original period), or release, compromise, alter or exchange any
         obligations of any nature of any obligor with respect to any such
         rights or property;

                  (j) Holder hereby waives: (i) notice of acceptance of these
         Subordination Provisions by any of the Senior Interest Holders; (ii)
         notice of the existence, creation, non-payment or non-performance of
         all or any of the Senior Interests; and (iii) all diligence in
         enforcement, collection or protection of, or realization upon, the
         Senior Interests, or any thereof, or any security therefor;

                  (k) Each of the Senior Interest Holders may, from time to
         time, on the terms and subject to the conditions set forth in the
         Transaction Documents to which such Persons are party, but without
         notice to Holder, assign or transfer any or all of the Senior
         Interests, or any interest therein; and, notwithstanding any such
         assignment or transfer or any subsequent assignment or transfer
         thereof, such Senior Interests shall be and remain Senior Interests for
         the purposes of these Subordination Provisions, and every immediate and
         successive assignee or transferee of any of the Senior Interests or of
         any interest of such assignee or transferee in the Senior Interests
         shall be entitled to the benefits of these Subordination Provisions to
         the same extent as if such assignee or transferee were the assignor or
         transferor; and

                  (l) These Subordination Provisions constitute a continuing
         offer from the holder of this Term Note to all Persons who become the
         holders of, or who continue to hold, Senior Interests; and these
         Subordination Provisions are made for the benefit of the Senior
         Interest Holders, and the Administrative Agent may proceed to enforce
         such provisions on behalf of each of such Persons.

         7. General. No failure or delay on the part of the Holder in exercising
any power or right hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any such power or right preclude any other or
further exercise thereof or the exercise of any other power or right. No
amendment, modification or waiver of, or consent with respect to, any provision
of this Term Note shall in any event be effective unless (i) the same shall be
in writing and signed and delivered by the Company and Holder and consented to
by the Administrative Agent and (ii) all consents required for such actions
under the Transaction Documents shall have been received by the appropriate
Persons.

         8.       No Negotiation.  This Term Note is not negotiable.

                                        5
<PAGE>

         9. GOVERNING LAW. THIS TERM NOTE SHALL BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS
5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BUT
OTHERWISE WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES).

         10. Captions. Paragraph captions used in this Term Note are for
convenience only and shall not affect the meaning or interpretation of any
provision of this Term Note.

                  [Remainder of page intentionally left blank]

                                        6
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this instrument to be
signed, manually or in facsimile, by its duly authorized officer as of the date
above first written.

                                  ACE FUNDING LLC

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

<PAGE>
                                                                 EXHIBIT 5.01(v)

                        ELECTRONIC PRESENTMENT AGREEMENT

         This Agreement is made as of the 6th day of January, 2003 ("Effective
Date"), between Ace Funding, LLC, a limited liability company organized under
the laws of Delaware ("Funding") and a subsidiary of ACE Cash Express, Inc., a
Texas corporation, having its principal place of business at 1231 Greenway
Drive, Suite 600, Irving, Texas 75038, ACE Cash Express, Inc., a Texas
corporation, having its principal place of business at 1231 Greenway Drive,
Suite 600, Irving, Texas 75038 ("ACE"), H&R Block Tax Services, Inc., a Missouri
corporation ("Block"), Imperial Capital Bank, a California state-chartered bank
and subsidiary of ITLA Capital Corporation ("Bank"), and Household Tax Masters
Inc., a Delaware corporation having its principal place of business at 200
Somerset Corporate Boulevard, Suite 102, Bridgewater, New Jersey 08807-2862
("HTM").

         A. WHEREAS, pursuant to that certain License Agreement between ACE and
Block dated November 22, 2000, and Addendum No. 1 to the License Agreement dated
May 31, 2001 (collectively the "License") ACE operates Self Service Machines
("SSMs") in approximately 248 Block business premises ("locations"), during that
period of time from the first Monday after January 1st through May 31st of each
year ("Tax Season");

         B. WHEREAS, Block desires to expedite the disbursement of cash to their
customers ("Customers") who obtain Refund Anticipation Loans ("RAL") or Refund
Anticipation Checks ("RAC") (collectively, the "Customer Checks"); and

         C. WHEREAS, HTM provides the Bank with critical services in order for
Bank to conduct the Refund Anticipation Loan program ("RAL Program"); and

         D. WHEREAS, Bank is the originator of Refund Anticipation Loans for the
RAL program and the issuer of the Refund Anticipation Checks; and

         E. WHEREAS, ACE wishes to facilitate cash disbursements through the
SSMs and to deliver to the Bank, at the conclusion of the Tax Season, the
Customer Checks that were deposited into the SSMs during the Tax Season; and

         F. WHEREAS, the parties hereto desire to provide for electronic
presentment of Customer Checks to Bank in accordance with the terms and
conditions of this Agreement to facilitate the payment of amounts due with
respect to Customer Checks cashed in SSMs.

         NOW, THEREFORE, ACE, Funding, Bank, Block and HTM agree as follows:

1. SSM CUSTOMER PROCEDURES AND DISCLOSURE

1.1. Paper Checks - When a Customer applies and is accepted for a RAL or RAC and
indicates that he/she wants to utilize a SSM to cash his/her Customer Check,
Block shall provide all disclosures to the Customer as previously agreed to
between HTM and Block, which in any event shall be in accordance with applicable
law and regulations. Block and ACE agree and warrant that no part of any check
cashing fee or other fee charged for the privilege of using the SSM shall be
included in or deducted from the amount of the RAL or RAC prior to the Customer
check being cashed in the SSM.

<PAGE>

1.2. Electronic Checks - When a Customer applies and is accepted for a RAL or
RAC and indicates that he/she wants his/her proceeds to be disbursed in cash
from a SSM, Block agrees to provide that Customer with Truth-in-Lending and
other disclosures required by applicable law and regulation and obtain the
Customer's agreement to those disclosures (including by signature, whether
physical or electronic) in a form and manner to be determined solely by HTM and
Bank prior to any cash being disbursed. Further, Block and ACE agree, represent
and warrant that no part of any check cashing fee, funds disbursement fee or
other fee charged for the privilege of using the SSM shall be included in or
deducted from the amount of the RAL or RAC prior to the proceeds being disbursed
from the SSM. ACE agrees that each such disbursement transaction shall be
considered as being accomplished through the issuance and negotiation of a check
by electronic means and that such issuance and negotiation shall be governed by
the Uniform Commercial Code ("UCC") as that code has been enacted in the State
of New York.

2. SETTLEMENT DIRECTIONS

         Each business day, at 3:00 p.m. Central Time, ACE will compile (i) the
check approval and check print files for Customer Checks cashed in SSMs pursuant
to this Agreement which are presented electronically and that originate from the
Block host system ("Block's Check Authorization File") and are received by the
ACE host system and (ii) the cash dispensed from SSMs in order to prepare a
checks cleared file in NACHA format. This process will generate pre-commit
information on the Customer Checks that were cashed in the SSMs after 3:00 p.m.
(local time) the immediately preceding business day until 3:00 p.m. (local time)
of the current business day. ACE will, following review and correction, if any,
finalize and commit the file by 4:00 p.m. Central Time on such business day,
thereby automatically creating a check cleared file in NACHA Format (a "Check
Cleared File"). By 4:00 p.m. on such day ACE will electronically send the Check
Cleared File to HTM for review and confirmation.

         By 4:00 p.m. on such day such Check Cleared File shall include, with
respect to each Customer Check, the data indicated on the attached Exhibit "A".
HTM shall review and approve each such Check Cleared File, provided that HTM may
elect, by notice to ACE, to disapprove specific Customer Checks ("Exceptions").
Upon such approval, and in time to permit the wire transfer by the time set
forth below, HTM shall forward such Check Cleared File (adjusted for the
Exceptions) to Bank with instructions to wire funds to U.S. Bank, National
Association as collateral agent for secured parties pursuant to the following
wire instructions: Account # 1801211673C5 ABA #091000622 Re: 33480100 Attn.:
Dawn Gipson/Ace Funding, which instructions shall not be modified without the
prior written consent of U.S. Bank National Association, the designated
recipient of such funds. Bank shall use its best efforts to complete such wire
on or before 1:00 pm Pacific Time of the business day following receipt of the
Check Cleared File authorizing the wire, but shall, in any event, complete such
wire transfer on the next business day.

3. CHECK PROCESSING AND DELIVERY

         (a)  The endorsement on paper checks shall be voided by ACE
              immediately upon deposit into a SSM.

                                       2
<PAGE>

         (b)  ACE will be responsible for voiding and safekeeping the checks
              until the conclusion of Tax Season, at which time ACE will
              deliver the voided checks to HTM as servicer for Bank.

         (c)  ACE and Bank will resolve Exceptions, through HTM as servicer for
              Bank, on an individual item-by-item basis. If ACE and HTM are
              unable to resolve an Exception with respect to any specific check
              cashed in an SSM and have it included in a Check Cleared File,
              ACE shall retain all remedies under the applicable Uniform
              Commercial Code with respect to pursuing payment of such Customer
              Check by Bank.

4. GUARANTEE OF CHECK AUTHORIZATION FILES

         As an inducement for HTM and Bank to enter into this Agreement, ACE and
Block hereby represent, warrant and guarantee that the information contained in
the Check Cleared File delivered to HTM and to Bank from ACE will be true and
accurate in all material respects. Further, Block represents, warrants and
guarantees that the information contained in Block's Check Authorization File
will be true and correct in all material respects. ACE and Block represent,
warrant and guarantee the identity of the Customers who cash Customer Checks or
otherwise receive funds through transactions appearing in the Check Cleared
File, provided the foregoing shall not modify, as between ACE and Block, the
risk-sharing terms of the License. With respect to all such transactions, ACE
makes to Bank and guarantees all warranties of presentment contained in UCC
Sections 3-417 and 4-208. This Agreement shall be considered an agreement for
Electronic Presentment pursuant to UCC Section 4-110. Bank agrees (i) to pursue
any claims against Block or ACE directly against Block and ACE and (ii) under no
circumstances shall any funds to be wired pursuant to Section 2 following HTM's
approval, subject to Exceptions, of the Check Cleared File, hereof be subject to
any offset or deduction of any kind, with respect to disputes with Block or ACE
or otherwise.

5. CUSTOMER PRIVACY

         A. ACE and/or Block, in performing their obligations pursuant to this
Agreement, may have access to or receive disclosure of information (either from
Bank, HTM or a Customer) about a Customer, including but not limited to,
Non-Public Personal Information, as hereinafter defined in subparagraph b.
below. ACE and Block agree that all such information obtained from Bank, HTM or
from a Customer in the course of this Agreement (hereinafter referred to as
"Consumer Personal Information") by ACE or Block, their directors, officers,
employees, subcontractors and any other party with whom they contract, is and
shall be considered, confidential and neither ACE nor Block shall use, disclose,
give, sell, or otherwise transfer or make available, directly or indirectly,
Consumer Personal Information to any third party, except as may be necessary to
perform their obligations pursuant to this Agreement and except as may be agreed
upon in writing by Bank specifically. ACE and Block shall adopt and maintain
respective comprehensive privacy policies with respect to their handling of the
Consumer Personal Information, which policies, in any event, shall at all times
comply with applicable law and regulation governing the use and dissemination of
such Consumer Personal Information. Notwithstanding the foregoing, Consumer
Personal Information obtained from Customers by Block and ACE, respectively, may
be used by Block and ACE as allowed in their respective privacy policies.

                                       3
<PAGE>

         B. All parties agree that, during the term of this Agreement and
thereafter, Consumer Personal Information will be used by each party solely
according to the terms of their respective privacy policies.

         C. Each party has developed, implemented and will maintain effective
information security policies and procedures that include administrative,
technical and physical safeguards designed to 1) ensure the security and
confidentiality of Consumer Personal Information provided hereunder, 2) protect
against anticipated threats or hazards to the security or integrity of such
Consumer Personal Information, 3) protect against unauthorized access or use of
such Consumer Personal Information and 4) comply with applicable law and
regulations. All personnel of each party handling such Consumer Personal
Information have been appropriately trained in the implementation of the party's
information security policies and procedures. Each party regularly audits and
reviews its information security policies and procedures to ensure their
continued effectiveness and determine whether adjustments are necessary in light
of circumstances including, without limitation, changes in technology, customer
information systems or threats or hazards to Consumer Personal Information.

         D. Bank covenants and agrees that Bank will not use any information
received by reason of this Agreement to market products or services to Block
Customers. ACE covenants and agrees that ACE will not use any information
contained in Block's Check Authorization File received by ACE or any other
information which is confidential pursuant to the License to market products or
services to Block Customers.

6. TERM; RENEWALS; TERMINATION

         A. The initial term of this Agreement shall commence on January 1, 2003
and end at midnight Central Time, May 31, 2003, unless terminated earlier
pursuant to Section 6(B).

         B. HTM, Bank or Block may terminate this Agreement immediately upon
notice to ACE and Block (if such notice is from HTM or Bank) or notice to ACE,
HTM and Bank (if such notice is from Block) upon any of the following events
(provided Block's termination rights shall not apply to matters in paragraph
(i)): (i) ACE presents paper items to Bank for which payment has already been
received or for which electronic presentment has already been made; (ii) ACE
fails to maintain adequate insurance coverage for the content of the SSMs; (iii)
ACE shall elect to wind up or dissolve its operation or is wound up and
dissolved; becomes insolvent or repeatedly fails to pay its debts as they become
due; makes an assignment for the benefit of creditors; files a voluntary
petition in bankruptcy, or for reorganization or is adjudicated as bankrupt or
insolvent; or has a liquidator or trustee appointed over its affairs; (iv) if
there occurs any material adverse change in ownership of ACE or if a material
adverse change occurs in ACE's financial condition as determined by HTM or Bank
in their sole discretion, or if ACE suspends or goes out of business or
substantially reduces its business operations or sends a notice of a proposed
bulk sale of all or part of its business; (v) ACE materially breaches its
obligations or any guarantee, warranty or representation under this Agreement;
(vi) Bank or HTM has reasonable cause to believe that ACE will not be able to
perform its obligations under this Agreement as the result of adverse regulatory
rulings or decisions; (vii) Bank or HTM has reasonable cause to believe that
Block or ACE, their employees or agents have engaged in any fraudulent activity
in connection with any of the transactions contemplated by this Agreement or
Bank or HTM receives a disproportionate

                                       4
<PAGE>

number of Customer inquiries, disputes, or complaints; or (viii) in Bank's or
HTM's judgment, any applicable law requires that this Agreement or any party's
rights or obligations hereunder be amended, modified, waived or suspended in any
material respect and such amendment is not completed within a reasonable time
following notice.

         C. Excluded SSMs. This Agreement shall not include the ten SSMs listed
on Exhibit B unless and until HTM and Bank, in their sole discretion, each
notify Ace and Block that such SSMs will be included in this Agreement.

         D. Ace or Funding shall have the right to terminate this Agreement
immediately upon notice to Block, HTM and Bank if (a) Bank materially breaches
its obligations hereunder and fails to cure such breach with two (2) business
days of written notice thereof, or (b) HTM materially breaches its obligations
hereunder and fails to cure such breach with two (2) business days of written
notice thereof.

         E. Termination of this Agreement shall not affect any of the Parties'
responsibilities for performing its obligations under this Agreement prior to
the effective date of such termination.

         F. Termination of this Agreement shall not, in any way, affect Ace's,
Funding's or U.S. Bank National Association's (as collateral agent) ability to
present paper checks cashed at SSMs and not paid in accordance with the terms
hereof in accordance with customary deposit procedures, including without
limitation, checks cashed following termination (regardless of whether any
endorsement thereon has been voided).

         G. Sections 5, 6, 7, 13 and 14 shall survive termination of this
Agreement.

7. INDEMNIFICATION

         ACE shall be liable to and shall defend, indemnify and hold harmless
Bank, HTM and their Affiliates and their respective officers, employees, agents
and directors from any losses, damages, claims or complaints threatened against
or incurred by Bank or HTM or any Affiliate of Bank or HTM or their respective
officers, employees, agents and directors arising out of (i) ACE's actual or
alleged failure to comply with its obligations under this Agreement or breach of
a representation, warranty or guarantee; (ii) any claim, dispute, complaint or
setoff against Bank or HTM or any affiliate of Bank or HTM made by a Customer
with respect to anything actually or allegedly done or not done by ACE in
connection with this Agreement; (iii) the death or injury to any person or the
loss, destruction or damage to any property arising out of anything done or not
done by ACE in connection with the design, manufacture or furnishing by ACE of
any SSM; (iv) any claim or complaint of a third party against Bank or HTM or any
affiliate of Bank or HTM in connection with ACE's advertisements and promotions
relating to the check cashing services under this Agreement; (v) any actual
illegal or asserted improper, negligent or other wrongful conduct of ACE or its
employees or agents in connection with this Agreement; and (vi) any claim or
complaint by a Consumer or governmental agency against Bank or HTM or any
affiliate of Bank or HTM asserting that ACE has violated any applicable laws.

         ACE shall be liable to and shall defend, indemnify and hold harmless
Block and their Affiliates and their respective officers, employees, agents and
directors from any losses, damages,

                                       5
<PAGE>

claims or complaints threatened against or incurred by Block or any Affiliate of
Block or their respective officers, employees, agents and directors arising out
of (i) ACE's actual or alleged failure to comply with its obligations under this
Agreement or breach of a representation, warranty or guarantee; (ii) the death
or injury to any person or the loss, destruction or damage to any property
arising out of anything done or not done by ACE in connection with the design,
manufacture or furnishing by ACE of any SSM and (iii) any actual illegal or
asserted improper, negligent or other wrongful conduct of ACE or its employees
or agents in connection with this Agreement provided that the foregoing
indemnities shall be subject to the risk sharing provisions of the License.

         Block shall be liable to and shall defend, indemnify and hold harmless
Bank, HTM and their Affiliates and their respective officers, employees, agents
and directors from any losses, damages, claims or complaints threatened against
or incurred by Bank or HTM or any Affiliate of Bank or HTM or their respective
officers, employees, agents and directors arising out of (i) any claim, dispute,
complaint or setoff against Bank or HTM or any affiliate of Bank or HTM made by
a Customer with respect to anything actually or allegedly done or not done by
Block in connection with Block's obligations under this Agreement and with
respect to an actual or alleged breach of representation, warranty, and
guarantee by Block under this Agreement; (ii) any claim or complaint of a third
party against Bank or HTM or any of their affiliates arising from Block's
advertisements and promotions relating to the check cashing services under this
Agreement; (iii) any actual illegal or asserted improper, negligent or other
wrongful conduct of Block or its employees or agents in connection with any of
the transactions contemplated by this Agreement; and (iv) any claim or complaint
by a Consumer or governmental agency against Bank or HTM or any affiliate of
Bank or HTM that Block by its conduct in connection with its obligations under
this Agreement has violated any applicable laws or regulations. HTM shall
indemnify ACE, Funding and U.S. Bank National Association, as collateral agent,
against any claim or complaint related to the RAL and RAC documentation provided
that ACE and/or Block provide such documentation to Customers in exactly the
form prescribed to them by HTM, as servicer for Bank. In the event that any
party shall receive any claim or demand or be subject to any suit or proceeding
of which a claim may be made against Bank, HTM, or ACE under this Section, the
indemnified parties shall give prompt written notice thereof to the indemnifying
parties and the indemnifying parties will be entitled to participate in the
settlement or defense thereof with counsel satisfactory to indemnified parties
at the indemnifying parties' expense. In any case, the indemnifying parties and
the indemnified parties shall cooperate (at no cost to the indemnified parties)
in the settlement or defense of any such claim, demand, suit, or proceeding.

8. COMPLIANCE WITH LAWS

         The Parties will perform their respective obligations under this
Agreement in compliance, in all material respects, with all applicable laws,
orders, and regulations.

9. NOTICES

         Any notice, consent, or other communication to be given under this
         Agreement by either Party to another Party shall be in writing and
         shall be either (a) personally delivered, (b) mailed by registered or
         certified mail, postage prepaid with return receipt requested, or (c)
         delivered by overnight express delivery service or same-day local
         courier service at such other address as may have previously been
         designated by a Party for it by notice to

                                       6
<PAGE>

         the other Parties in accordance with this Section 6. Notices delivered
         personally, or by overnight express delivery service, or by local
         courier service shall be deemed given as of actual receipt. Mailed
         notices shall be deemed given three business days after mailing.

<Table>
<S>                                                    <C>
         If to Funding:                                If to HTM:
         ACE Funding, LLC                              Household Tax Masters Inc
         1231 Greenway Drive, Suite 600                200 Somerset Corporate Blvd.
         Irving, Texas 75038                           Bridgewater, NJ  08807
         Facsimile no.: 972/ 582-1425                  Facsimile no.: 908-203-4211
         Attn: Wanda Palmer-Strong                     Attn: Susan E. Artmann
         Vice President

         If to Funding:                                If to U.S. Bank, National Association
         ACE Cash Express, Inc.                        as Collateral Agent:
         1231 Greenway Drive, Suite 600                180 East Fifth Street
         Irving, Texas 75038                           St. Paul, Minnesota 55101
         Facsimile no.: 972/ 582-1464                  Facsimile no.: 651-244-0089/1797
         Attn:  Joe Conner, Chief Financial Officer    Attn:  Eve Kaplan

         If to Bank:                                   If to Block:
         Imperial Capital Bank                         4400 Main Street
         111 West Tenth Street                         Kansas City, Missouri 64111
         Suites B & C
         Carson City, Nevada 89703                     ------------------------------
         Facsimile no.:  775/ 841-4388                 Facsimile no.:816-932-1904
         Attention:  David B. Sundry                   Attn: Ms. Betsy Stephens

         If to Bank with a copy to:
         Imperial Capital Bank
         888 Prospect Street
         Suite 110
         La Jolla, California 92037
         Facsimile no.: 858/ 551-1212
         Attn: Timothy M. Doyle
</Table>

10. STATUS OF THE PARTIES

         In performing their responsibilities pursuant to this Agreement, all
parties are in the position of independent contractors, and in no circumstances
shall any party be deemed to be the agent or employee of any other. This
Agreement is not intended to create, nor does it create and shall not be
construed to create, a relationship of partner or joint venture or an
association for profit between any parties. The parties hereto acknowledge and
agree that the Customer Checks cashed in the SSMs and the funds to be wired
hereunder in settlement thereof are owned by Funding (which has granted a
security interest therein to U.S. Bank, National Association, as collateral
agent) and do not belong to ACE.

                                       7
<PAGE>

11. FORCE MAJEURE

         No party to this Agreement shall be liable to any other by reason of
any failure in performance of this Agreement in accordance with its terms if
such failure arises out of a cause beyond the control and without the fault or
negligence of such party. Such causes may include but are not limited to acts of
God, of the public enemy or of civil or military authority, unavailability of
energy resources, system or communication failure, delay in transportation,
fires, strikes, riots or war. In the event of any force majeure occurrence, the
disabled party shall use its best efforts to meet its obligations as set forth
in this Agreement.

12. GOVERNING LAW

         This Agreement shall be governed by, construed in accordance with, and
enforced under the laws of the State of New York (including Sections 5-1401 and
5-1402 of the New York General Obligations Law, but otherwise without respect to
its choice of laws provisions). In the event that any provision of this
Agreement conflicts with the Uniform Commercial Code, the Uniform Commercial
Code shall control.

13. AMENDMENT: WAIVER

         This Agreement may only be amended by the written consent of all
Parties and U.S. Bank National Association, as collateral agent, and any
provision hereof may be waived only by a document signed by the Party against
which the waiver is sought to be enforced.

14. HEADINGS AND CAPTIONS

         Headings, captions, and titles of articles, sections, paragraphs, or
other subparts of this Electronic Presentment Agreement are for convenience of
reference only and shall be ignored in interpreting, defining or construing the
text of this Agreement.

15. JURISDICTION

         ANY SUIT, COUNTERCLAIM, ACTION OR PROCEEDING ARISING OUT OF OR RELATING
TO THIS AGREEMENT MUST BE BROUGHT SOLELY IN THE COURTS OF THE STATE OF NEW YORK
OR IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW YORK; AND ALL
PARTIES HEREBY IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS
AND ANY APPELLATE COURTS THEREOF FOR THE PURPOSE OF ANY SUCH SUIT, COUNTERCLAIM,
ACTION, PROCEEDING OR JUDGMENT (IT BEING UNDERSTOOD THAT SUCH CONSENT TO THE
EXCLUSIVE JURISDICTION OF SUCH COURTS WAIVES ANY RIGHT TO SUBMIT ANY DISPUTES
HEREUNDER TO ANY COURTS OTHER THAN THOSE ABOVE).

16. WAIVER OF JURY TRIAL

         ALL PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY
RIGHT TO A TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING OR COUNTERCLAIM
CONCERNING ANY RIGHTS UNDER

                                       8
<PAGE>

THIS AGREEMENT, ANY RELATED DOCUMENT OR UNDER ANY OTHER DOCUMENT OR AGREEMENT
DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR
THEREWITH, OR ARISING FROM ANY RELATIONSHIP EXISTING IN CONNECTION WITH THIS
AGREEMENT, AND AGREE THAT ANY SUCH ACTION, SUIT, PROCEEDING OR COUNTERCLAIM
SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY; THIS PROVISION IS A
MATERIAL INDUCEMENT FOR ALL PARTIES ENTERING INTO THIS AGREEMENT. SUCH WAIVER BY
THE PARTIES HERETO SHALL NOT ACT AS A WAIVER OF ANY SUCH RIGHTS UNDER ANY OTHER
UNRELATED AGREEMENTS OF ANY OF THE PARTIES TO THIS AGREEMENT.

17. THIRD PARTY BENEFICIARY

         U.S. Bank National Association, as collateral agent, and its successors
and assigns in such capacity shall be third-party beneficiaries to the
provisions of this Agreement and shall be entitled to rely upon and directly
enforce such provisions of this Agreement.

18. MULTIPLE COUNTERPARTS

         This Agreement may be executed in multiple and separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which when taken together shall constitute one agreement.

                                       9
<PAGE>

         IN WITNESS WHEREOF, the Parties have caused this Agreement to be
executed by their duly authorized representatives and effective as of the
Effective Date.

ACE FUNDING, LLC.,                           HOUSEHOLD TAX MASTERS INC.
a Delaware limited liability company

By:                                          By:
   ----------------------------------           --------------------------------
Name:  Wanda Palmer-Strong                   Name:
Title: Vice President                              -----------------------------
                                             Title:
                                                   -----------------------------

Date:                                        Date:
     ---------------------                        ---------------------

IMPERIAL CAPITAL BANK                        H&R BLOCK TAX SERVICES, INC.

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

Date:                                        Date:
     ---------------------                        ---------------------

ACE CASH EXPRESS, INC.,
a Texas corporation

By:
   --------------------------------
Name:  Joe Conner
Title: Chief Financial Officer

Date:
     ---------------------

               [Signature Page - Electronic Presentment Agreement]

<PAGE>
                                                                         ANNEX I

                                 ACE FUNDING LLC
                         1231 GREENWAY DRIVE, SUITE 800
                               IRVING, TEXAS 75038

                                December 18, 2002

AT SYSTEMS SOUTHWEST, INC.
914 Paulsun Drive
San Antonio, TX 78219

Attn: Eddie Lira

         Re:      Custodial Acknowledgment in favor of the Collateral Agent (as
                  hereinafter defined)

Ladies and Gentlemen:

                  ACE FUNDING LLC, a Delaware limited liability company (the
"Borrower"), ACE CASH EXPRESS, INC., a Texas corporation, individually and as
check casher ("ACE"), AUTOBAHN FUNDING COMPANY LLC, a Delaware limited liability
company (the "Lender"), DZ BANK AG DEUTSCHE ZENTRAL-GENOSSENSCHAFTSBANK
FRANKFURT AM MAIN ("DZ Bank"), as administrative agent for Lender (in such
capacity, the "Administrative Agent") and as liquidity agent for Liquidity
Providers (in such capacity, the "Liquidity Agent"), and U.S. Bank National
Association, as collateral agent for the Secured Parties (as defined below) (in
such capacity, the "Collateral Agent") as parties to that certain Loan and
Servicing Agreement dated as of December 18, 2002 (as amended, restated,
supplemented or otherwise modified from time to time, the "Loan Agreement")
hereby notify you ("Approved Courier") and you hereby acknowledge, that the
Borrower has assigned, pledged and granted to the Collateral Agent, for the
benefit of the Secured Parties, a first and prior security interest in certain
property of Borrower, including all currency, coin, checks, securities and other
valuable property and proceeds thereof received, transported and delivered by
you from time to time (the "Property") in accordance with the contract between
you and the Borrower (as amended and supplemented the "Contract") and pertaining
to locations of the self-service check cashing machines listed on Schedule I
attached hereto as such schedule may be amended, restated,

<PAGE>

AT SYSTEMS SOUTHWEST, INC.
December 18, 2002
Page 2

supplemented or otherwise modified from time to time with the consent of the
Collateral Agent (the "SSMs") located in certain business premises of H&R Block
Tax Services, Inc., to secure certain obligations and indebtedness of the
Borrower owing to the "Secured Parties" as defined in the Loan Agreement.

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

                  (a) Approved Courier is hereby irrevocably authorized and
directed by Borrower, upon the request of the Collateral Agent, to retrieve (if
necessary) and deliver to the Collateral Agent or its designee (as the
Collateral Agent may direct), to the applicable financial institution as
indicated on the attached Schedule I ("Approved Vault Bank") any and all
Property then and thereafter received, transported or delivered by Approved
Courier pursuant to the Contract (including, without limitation, all Property
contained in cartridges at the SSMs). All requests, instructions and notices to
be given to Approved Courier pursuant to this letter agreement by the Collateral
Agent may be oral or written (unless provided otherwise below) and shall be made
by a Vice President of the Collateral Agent and shall be delivered to Approved
Courier at the address indicated above, facsimile no. (210) 222-8329, phone no.
(210) 222-8505 extension 103 (subject to change only by prior written notice
from Approved Courier to the Borrower and the Collateral Agent as provided in
the last paragraph hereof) and to the attention of Eddie Lira. All requests,
instructions and notices shall be confirmed in writing, by telex, facsimile,
certified mail or express delivery service not later than the second business
day next following the date or time such request, instruction or notice is
effective. Approved Courier shall have a reasonable period of time (but in any
event not to exceed two business days) following the receipt of any request,
instruction or notice to comply therewith. Approved Courier accepts and agrees
to comply with the preceding authorization and direction, and with any such
request or instruction from the Collateral Agent until such time as the
Collateral Agent otherwise directs in writing, as provided above; provided, that
Approved Courier shall incur no liability whatsoever to the Borrower or the

<PAGE>

AT SYSTEMS SOUTHWEST, INC.
December 18, 2002
Page 3

Collateral Agent in acting upon any request or instruction which Approved
Courier reasonably believes to have been given in the manner provided herein by
an authorized representative of the Collateral Agent. Instructions of the
Collateral Agent shall control, and, except as permitted by the Collateral Agent
below in this letter agreement or otherwise in writing, the Borrower shall not
have any right or authority whatsoever to instruct Approved Courier with respect
to the Property.

                  (b) The Collateral Agent shall pay directly to Approved
Courier all costs and expenses payable to Approved Courier pursuant to the
Contract, including any additional cost or expense which Approved Courier shall
require if Approved Courier is directed by the Collateral Agent to perform any
service additional to or different from the services specifically set forth in
the Contract to the extent funds are available in Account # 33480100 at the
Collateral Agent (the "Trust Collection Account"). To the extent the Collateral
Agent fails to pay the amounts referenced in the foregoing sentence, the
Borrower (or ACE in the event the Borrower does not have sufficient funds) will
pay such amounts. Approved Courier waives and disclaims any and all interest
(whether ownership, security or otherwise), at law or in equity, including
without limitation any right of offset or counterclaim against, or carrier's
lien in, the Property and expressly agrees that the Borrower owns the Property,
free and clear of all liens, interests, claims or other rights arising by,
through or under Approved Courier.

                  (c) Neither this letter agreement nor the Contract shall be
modified or amended without the prior written consent of Approved Courier, the
Borrower, the Administrative Agent, ACE and the Collateral Agent. In that
connection, it is agreed that the Contract may be amended to add thereto or to
delete therefrom the location of the SSMs by an amendment duly executed by
Approved Courier, the Collateral Agent, the Administrative Agent, ACE and the
Borrower and that the Contract as amended shall thereafter continue in full
force and effect.

<PAGE>

AT SYSTEMS SOUTHWEST, INC.
December 18, 2002
Page 4

                  (d) Approved Courier hereby acknowledges that (i) the Property
is legally and equitably owned by the Borrower and is not the property of the
Approved Vault Bank, the owner of any SSM, H&R Block, ACE or any other party,
(ii) the Collateral Agent has been granted by the Borrower and currently holds a
security interest in the Property and (iii) pursuant to such grant, the
Collateral Agent has the right to exercise the rights of the Borrower under the
Contract. Approved Courier agrees and acknowledges that at all times during
which Approved Courier is in possession of Property received, transported and
delivered by Approved Courier pursuant to the Contract, Approved Courier shall
maintain possession of such Property in the capacity of a custodian and bailee
of such Property for the benefit of the Collateral Agent on behalf of the
Secured Parties for the purpose of perfecting the security interest of the
Collateral Agent pursuant to applicable provisions of the Uniform Commercial
Code or other applicable law, subject and pursuant to the provisions of the
Contract as amended from time to time and pursuant to the provisions of this
letter agreement.

                  (e) Approved Courier agrees to provide the Collateral Agent
with such information and records relating solely to the performance of the
Contract as the Collateral Agent may reasonably request from time to time;
provided that, Approved Courier shall furnish to the Borrower a copy of all such
information and records which are so provided to the Collateral Agent.

                  (f) In the event of loss of the Property, the Collateral
Agent, the Borrower or ACE (each of the Borrower and ACE as agent for the
Collateral Agent) shall have the right to present a claim to Approved Courier
for loss reimbursement in the manner specified and allowed under the terms of
the Contract. All such loss reimbursements shall be deposited directly into the
Vault Collection Account ("Vault Collection Account") designated from time to
time by the Collateral Agent at the applicable Approved Vault Bank to satisfy
any outstanding obligations under the Loan Agreement.

<PAGE>

AT SYSTEMS SOUTHWEST, INC.
December 18, 2002
Page 5

                  (g) Approved Courier 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 Approved Courier's nonperformance of its
obligations set forth herein, and the Borrower agrees to pay all court costs and
reasonable attorneys' fees which Approved Courier may incur as a result of any
such dispute.

                  2. Until notice is given to the Approved Courier by the
Collateral Agent under Paragraph 1 above:

                  (a) Approved Courier shall continue, pursuant to the Contract,
to pick up sealed cartridges said or represented to contain currency at the
Approved Vault Bank for delivery to the SSMs. The sealed cartridges shall be
delivered by Approved Courier to the SSMs specifically designated in writing by
ACE, as check casher, but (notwithstanding any provision of the Contract to the
contrary) no cartridge shall be delivered to any location other than one or more
of the SSMs.

                  (b) Furthermore, Approved Courier shall continue to pick up
sealed cartridges said to contain all excess cash and items other than checks
and checks (unless checks are voided pursuant to the Electronic Presentment
Agreement referenced below) that are made available to Approved Courier from the
SSMs and shall deliver them to the Approved Vault Bank pursuant to the Contract.
If instructed by ACE (and approved by the Collateral Agent and the
Administrative Agent) that an Electronic Presentment Agreement has been
executed, Approved Courier shall continue to pick up all voided checks and shall
deliver them to Texas Capital Bank for safekeeping ("Texas Capital") pursuant to
the Contract.

                  (c) The instructions provided by ACE pursuant to this
Paragraph 2 may be revoked at any time by notice to that effect by an authorized
representative of the Collateral Agent given to Approved Courier and/or to the
attention of the Branch Manager or, in his or her absence, an Assistant Branch
Manager, of the Approved Vault Bank and any such oral notice shall be confirmed
in writing by certified mail or express delivery service not

<PAGE>

AT SYSTEMS SOUTHWEST, INC.
December 18, 2002
Page 6

later than the business day next following the date or time such notice is
effective.

                  3. By accepting this letter agreement, Approved Courier
represents that the Contract is in full force and effect and that Approved
Courier will not amend the Contract in any manner except in accordance with
paragraph 1(c) hereof. Approved Courier agrees that the Contract will not be
terminated without at least ten (10) days' prior written notice to the
Collateral Agent and prior to any such termination all Property shall be
collected and delivered to the Approved Vault Bank (or, in the case of voided
checks, Texas Capital as set forth in paragraph 2(b) above).

                  This letter agreement shall be governed by and construed in
accordance with the laws of the State of Texas.

                  Approved Courier covenants and agrees that prior to the date
which is one year and one day (or the then applicable preference period) after
the date upon which all obligations under the Loan Agreement have been paid in
full, Approved Courier will not institute against, or join any other party in
instituting against the Borrower any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceeding or other proceedings under any federal or
state bankruptcy or similar law.

                  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 following, which are also the addresses for notice
to the Collateral Agent and the Borrower (subject to change only by prior notice
from the Collateral Agent or the Borrower to you as provided in Paragraph l(a)
hereof): US Bank, 180 East Fifth Street, St. Paul, Minnesota 55101 (Attention:
Structured Finance/ACE Cash Express), facsimile no. (651) 244-1797; and to the
Borrower, 1231 Greenway Drive, Suite 800, Irving, Texas 75038 (Attention: Joe
Conner), facsimile no. (972) 550-5150. This letter agreement may be executed in
multiple counterparts.

<PAGE>

AT SYSTEMS SOUTHWEST, INC.
December 18, 2002
Page 7

                  Thank you.

                                        Yours very truly,

                                        ACE Funding LLC

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

<PAGE>

AT SYSTEMS SOUTHWEST, INC.
December 18, 2002
Page 8

Approved as of the date first above written:

ACE CASH EXPRESS, INC.

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

DZ BANK AG DEUTSCHE ZENTRAL-GENOSSENSCHAFTSBANK FRANKFURT AM MAIN, as
Administrative Agent and Liquidity Agent

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

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

Address: 609 Fifth Avenue, 7th Floor
         New York, NY 10017

US BANK, N.A. as Collateral Agent

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

Address:  180 East Fifth Street
          St. Paul, Minnesota 55101

<PAGE>

AT SYSTEMS SOUTHWEST, INC.
December 18, 2002
Page 9

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

AT SYSTEMS SOUTHWEST, INC.

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

<PAGE>

                                   SCHEDULE I

SSM Location               Approved Vault Bank               Approved Vault Bank
                                                                   Contact

<PAGE>
                                                                        ANNEX VI

                                 ACE FUNDING LLC
                         1231 GREENWAY DRIVE, SUITE 800
                               IRVING, TEXAS 75038

                                December 18, 2002

LOOMIS, FARGO & CO.
3030 LBJ Freeway, Suite 1394
Dallas, TX 75234 (if necessary) and deliver to the Collat

Attn: John Brett

         Re:      Custodial Acknowledgment in favor of the Collateral Agent (as
                  hereinafter defined)

Ladies and Gentlemen:

                  ACE FUNDING LLC, a Delaware limited liability company (the
"Borrower"), ACE CASH EXPRESS, INC., a Texas corporation, individually and as
check casher ("ACE"), AUTOBAHN FUNDING COMPANY LLC, a Delaware limited liability
company (the "Lender"), DZ BANK AG DEUTSCHE ZENTRAL-GENOSSENSCHAFTSBANK
FRANKFURT AM MAIN ("DZ Bank"), as administrative agent for Lender (in such
capacity, the "Administrative Agent") and as liquidity agent for Liquidity
Providers (in such capacity, the "Liquidity Agent"), and U.S. Bank National
Association, as collateral agent for the Secured Parties (as defined below) (in
such capacity, the "Collateral Agent") as parties to that certain Loan and
Servicing Agreement dated as of December 18, 2002 (as amended, restated,
supplemented or otherwise modified from time to time, the "Loan Agreement")
hereby notify you ("Approved Courier") and you hereby acknowledge, that the
Borrower has assigned, pledged and granted to the Collateral Agent, for the
benefit of the Secured Parties, a first and prior security interest in certain
property of Borrower, including all currency, coin, checks, securities and other
valuable property and proceeds thereof received, transported and delivered by
you from time to time (the "Property") in accordance with the contract between
you and the Borrower (as amended and supplemented the "Contract") and pertaining
to locations of the self-service check cashing machines listed on Schedule I
attached hereto as such schedule may be amended, restated,

<PAGE>

LOOMIS, FARGO & CO.
December 18, 2002
Page 2

supplemented or otherwise modified from time to time with the consent of the
Collateral Agent (the "SSMs") located in certain business premises of H&R Block
Tax Services, Inc., to secure certain obligations and indebtedness of the
Borrower owing to the "Secured Parties" as defined in the Loan Agreement.

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

                  (a) Approved Courier is hereby irrevocably authorized and
directed by Borrower, upon the request of the Collateral Agent, to retrieveeral
Agent or its designee (as the Collateral Agent may direct), to the applicable
financial institution as indicated on the attached Schedule I ("Approved Vault
Bank") any and all Property then and thereafter received, transported or
delivered by Approved Courier pursuant to the Contract (including, without
limitation, all Property contained in cartridges at the SSMs). All requests,
instructions and notices to be given to Approved Courier pursuant to this letter
agreement by the Collateral Agent may be oral or written (unless provided
otherwise below) and shall be made by a Vice President of the Collateral Agent
and shall be delivered to Approved Courier at the address indicated above,
facsimile no. (972) 241-4642, phone no. (972) 241-9876 (subject to change only
by prior written notice from Approved Courier to the Borrower and the Collateral
Agent as provided in the last paragraph hereof) and to the attention of John
Brett, with a copy to _____________________. All requests, instructions and
notices shall be confirmed in writing, by telex, facsimile, certified mail or
express delivery service not later than the second business day next following
the date or time such request, instruction or notice is effective. Approved
Courier shall have a reasonable period of time (but in any event not to exceed
two business days) following the receipt of any request, instruction or notice
to comply therewith. Approved Courier accepts and agrees to comply with the
preceding authorization and direction, and with any such request or instruction
from the Collateral Agent until such time as the Collateral Agent otherwise
directs in writing, as provided above; provided, that Approved Courier shall
incur no liability whatsoever to the Borrower or the

<PAGE>

LOOMIS, FARGO & CO.
December 18, 2002
Page 3

Collateral Agent in acting upon any request or instruction which Approved
Courier reasonably believes to have been given in the manner provided herein by
an authorized representative of the Collateral Agent. Instructions of the
Collateral Agent shall control, and, except as permitted by the Collateral Agent
below in this letter agreement or otherwise in writing, the Borrower shall not
have any right or authority whatsoever to instruct Approved Courier with respect
to the Property.

                  (b) The Collateral Agent shall pay directly to Approved
Courier all costs and expenses payable to Approved Courier pursuant to the
Contract, including any additional cost or expense which Approved Courier shall
require if Approved Courier is directed by the Collateral Agent to perform any
service additional to or different from the services specifically set forth in
the Contract to the extent funds are available in Account # 33480100 at the
Collateral Agent (the "Trust Collection Account"). To the extent the Collateral
Agent fails to pay the amounts referenced in the foregoing sentence, the
Borrower (or ACE in the event the Borrower does not have sufficient funds) will
pay such amounts. Approved Courier waives and disclaims any and all interest
(whether ownership, security or otherwise), at law or in equity, including
without limitation any right of offset or counterclaim against, or carrier's
lien in, the Property and expressly agrees that the Borrower owns the Property,
free and clear of all liens, interests, claims or other rights arising by,
through or under Approved Courier.

                  (c) Neither this letter agreement nor the Contract shall be
modified or amended without the prior written consent of Approved Courier, the
Borrower, the Administrative Agent, ACE and the Collateral Agent. In that
connection, it is agreed that the Contract may be amended to add thereto or to
delete therefrom the location of the SSMs by an amendment duly executed by
Approved Courier, the Collateral Agent, the Administrative Agent, ACE and the
Borrower and that the Contract as amended shall thereafter continue in full
force and effect.

<PAGE>

LOOMIS, FARGO & CO.
December 18, 2002
Page 4

                  (d) Approved Courier hereby acknowledges that (i) the Property
is legally and equitably owned by the Borrower and is not the property of the
Approved Vault Bank, the owner of any SSM, H&R Block, ACE or any other party,
(ii) the Collateral Agent has been granted by the Borrower and currently holds a
security interest in the Property and (iii) pursuant to such grant, the
Collateral Agent has the right to exercise the rights of the Borrower under the
Contract. Approved Courier agrees and acknowledges that at all times during
which Approved Courier is in possession of Property received, transported and
delivered by Approved Courier pursuant to the Contract, Approved Courier shall
maintain possession of such Property in the capacity of a custodian and bailee
of such Property for the benefit of the Collateral Agent on behalf of the
Secured Parties for the purpose of perfecting the security interest of the
Collateral Agent pursuant to applicable provisions of the Uniform Commercial
Code or other applicable law, subject and pursuant to the provisions of the
Contract as amended from time to time and pursuant to the provisions of this
letter agreement.

                  (e) Approved Courier agrees to provide the Collateral Agent
with such information and records relating solely to the performance of the
Contract as the Collateral Agent may reasonably request from time to time;
provided that, Approved Courier shall furnish to the Borrower a copy of all such
information and records which are so provided to the Collateral Agent.

                  (f) In the event of loss of the Property, the Collateral
Agent, the Borrower or ACE (each of the Borrower and ACE as agent for the
Collateral Agent) shall have the right to present a claim to Approved Courier
for loss reimbursement in the manner specified and allowed under the terms of
the Contract. All such loss reimbursements shall be deposited directly into the
Vault Collection Account ("Vault Collection Account") designated from time to
time by the Collateral Agent at the applicable Approved Vault Bank to satisfy
any outstanding obligations under the Loan Agreement.

<PAGE>

LOOMIS, FARGO & CO.
December 18, 2002
Page 5

                  (g) Approved Courier 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 Approved Courier's nonperformance of its
obligations set forth herein, and the Borrower agrees to pay all court costs and
reasonable attorneys' fees which Approved Courier may incur as a result of any
such dispute.

                  2. Until notice is given to the Approved Courier by the
Collateral Agent under Paragraph 1 above:

                  (a) Approved Courier shall continue, pursuant to the Contract,
to pick up sealed cartridges said or represented to contain currency at the
Approved Vault Bank for delivery to the SSMs. The sealed cartridges shall be
delivered by Approved Courier to the SSMs specifically designated in writing by
ACE, as check casher, but (notwithstanding any provision of the Contract to the
contrary) no cartridge shall be delivered to any location other than one or more
of the SSMs.

                  (b) Furthermore, Approved Courier shall continue to pick up
sealed cartridges said to contain all excess cash and items other than checks
and checks (unless checks are voided pursuant to the Electronic Presentment
Agreement referenced below) that are made available to Approved Courier from the
SSMs and shall deliver them to the Approved Vault Bank pursuant to the Contract.
If instructed by ACE (and approved by the Collateral Agent and the
Administrative Agent) that an Electronic Presentment Agreement has been
executed, Approved Courier shall continue to pick up all voided checks and shall
deliver them to Texas Capital Bank for safekeeping ("Texas Capital") pursuant to
the Contract.

                  (c) The instructions provided by ACE pursuant to this
Paragraph 2 may be revoked at any time by notice to that effect by an authorized
representative of the Collateral Agent given to Approved Courier and/or to the
attention of the Branch Manager or, in his or her absence, an Assistant Branch
Manager, of the Approved Vault Bank and any such oral notice shall be confirmed
in writing by certified mail or express delivery service not later than the
business day next following the date or time such notice is effective.

<PAGE>

LOOMIS, FARGO & CO.
December 18, 2002
Page 6

                  3. By accepting this letter agreement, Approved Courier
represents that the Contract is in full force and effect and that Approved
Courier will not amend the Contract in any manner except in accordance with
paragraph 1(c) hereof. Approved Courier agrees that the Contract will not be
terminated without at least ten (10) days' prior written notice to the
Collateral Agent and prior to any such termination all Property shall be
collected and delivered to the Approved Vault Bank (or, in the case of voided
checks, Texas Capital as set forth in paragraph 2(b) above).

                  This letter agreement shall be governed by and construed in
accordance with the laws of the State of Texas.

                  Approved Courier covenants and agrees that prior to the date
which is one year and one day (or the then applicable preference period) after
the date upon which all obligations under the Loan Agreement have been paid in
full, Approved Courier will not institute against, or join any other party in
instituting against the Borrower any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceeding or other proceedings under any federal or
state bankruptcy or similar law.

                  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 following, which are also the addresses for notice
to the Collateral Agent and the Borrower (subject to change only by prior notice
from the Collateral Agent or the Borrower to you as provided in Paragraph l(a)
hereof): US Bank, 180 East Fifth Street, St. Paul, Minnesota 55101 (Attention:
Structured Finance/ACE Cash Express), facsimile no. (651) 244-1797; and to the
Borrower, 1231 Greenway Drive, Suite 800, Irving, Texas 75038 (Attention: Joe
Conner), facsimile no. (972) 550-5150. This letter agreement may be executed in
multiple counterparts.

<PAGE>

LOOMIS, FARGO & CO.
December 18, 2002
Page 7

                  Thank you.

                                                 Yours very truly,

                                                 ACE Funding LLC

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

<PAGE>

LOOMIS, FARGO & CO.
December 18, 2002
Page 8

Approved as of the date first above written:

ACE CASH EXPRESS, INC.

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

DZ BANK AG DEUTSCHE ZENTRAL-GENOSSENSCHAFTSBANK FRANKFURT AM MAIN, as
Administrative Agent and Liquidity Agent

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

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

Address: 609 Fifth Avenue, 7th Floor
         New York, NY 10017

US BANK, N.A. as Collateral Agent

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

Address:  180 East Fifth Street
          St. Paul, Minnesota 55101

<PAGE>

LOOMIS, FARGO & CO.
December 18, 2002
Page 9

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

LOOMIS, FARGO & CO.

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

<PAGE>

                                   SCHEDULE I

SSM Location               Approved Vault Bank               Approved Vault Bank
                                                                   Contact

<PAGE>

                                    Annex VI

[U.S. Bank logo]

November 21, 2002

Mr. Michael J. Briskey
Vice President of Finance
Ace Cash Express, Inc.
1231 Greenway Drive
Suite 800
Irving, TX 75038-9904

Re:      ACE CASH EXPRESS, INC. "Borrower"
         FACILITY WITH AUTOBAHN FUNDING COMPANY LLC "Lender"

Dear Mr. Briskey:

Thank you for the upcoming appointment as Collateral Agent for the referenced
financing.

Further to your conversation with Patrick Preece, I have enclosed a schedule of
fees for our services. We reserve the right to amend our fees following the
review of final documents and responsibilities.

U.S. Bank is a major provider of trust services and document file custody for
issuers all over the world. Demonstrating our commitment to the business, U.S.
Bank has one of the largest corporate trust businesses in the country, with
offices in twenty-six U.S. cities. The bank's long-term rating is currently Aa2,
A+, AA- from Moody's Investors Service, Standard & Poor's and Fitch IBCA,
respectively. U.S. Bank's balance sheet reflects $173 billion in assets and is
currently ranked as the eighth largest bank holding company in the United
States.

Bear in mind that U.S. Bank can offer:

         o        efficiency with funds movement due to our current role as
                  issuing and paying agent on Autobahn Funding LLC

         o        experience on over 925 current mortgage and asset-backed
                  appointments with aggregate outstandings in excess of $300
                  billion

         o        top five ranking in the year 2001 in aggregate dollar volume
                  of new public asset-backed trusteeships according to Thomson
                  Financial Securities Data

         o        Delaware office qualifying U.S. Bank as a Delaware Owner
                  Trustee

<PAGE>

Ace cash Express, Inc.
Page 2

         o        one of the most experienced corporate trust
                  asset/mortgage-backed administrative teams in the industry

         o        resources and commitment to meet expected financing deadlines

         o        internet access to complete account information including
                  asset positions, account balances, trade settlement activity
                  and historical transaction data

Please feel free to call me at (212) 361-2548 if you should have any questions.
We look forward to working with you on this opportunity and expanding your
relationship with U.S. Bank.

Sincerely,

Edward F. Kachinski
Senior Vice President

Enclosure(s)

cc:      Patrick Preece
         DZ Bank

         Mark Parsa
         DZ Bank

<PAGE>

                         U.S. BANK NATIONAL ASSOCIATION

                                SCHEDULE OF FEES
                                 FOR SERVICES AS

                                COLLATERAL AGENT

                                       FOR

                        ACE CASH EXPRESS, INC. "BORROWER"
                   FACILITY WITH AUTOBAHN FUNDING LLC "LENDER"

<Table>
<Caption>
<S>                                                                                             <C>
INITIAL ACCEPTANCE FEE:                                                                         $*
The acceptance fee includes the review and execution of the documents related to
the transaction and initial set-up of the account. Payable at the closing.

MONTHLY ADMINISTRATION FEE (JANUARY 15, 2003 - APRIL 15, 2003):                                 $*
The fee includes the Collateral Agent's duties as outlined in the governing
documents. The administration fee assumes that the trust accounts will be
invested in our automated sweep vehicles that are rated Aaa, AAAm by Moody's
Investors Service and Standard & Poor's Corporation, respectively. Payable
monthly from the transaction cash distributions for the four-month term.

OUT-OF-POCKET EXPENSES:                                                                         $*
Includes all related expenses, including but not limited to: postage, travel,
counsel fees and their disbursements. Attorney's fees for review of the
transaction will not exceed $6,000.00 barring unforeseen complications in the
closing. U.S. Bank will use Dorsey & Whitney as Collateral Agent's counsel.

Final account acceptance is subject to review of documents. Fees are based on
our understanding of the transaction and are subject to revision if the
structure is changed. In the event that this transaction does not close, any
related out-of-pocket expenses we incur will be billed to you at cost.
</Table>

DATED:  November 21, 2002

----------

* 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.

<PAGE>

                         U.S. BANK NATIONAL ASSOCIATION

                                  CONTACT LIST

                                       FOR

                        ACE CASH EXPRESS, INC. "BORROWER"
                   FACILITY WITH AUTOBAHN FUNDING LLC "LENDER"

<Table>
<S>                                             <C>                  <C>
U.S. Bank National Association                     Account            Eve Kaplan
180 East Fifth Street                              Manager:           Vice President
St. Paul, MN 55101                                                    Tel: (651) 244-0727
                                                                      Fax: (651) 244-1797
                                                                      E-Mail: eve.kaplan@usbank.com

                                                                      Toby Robillard
                                                                      Assistant Vice President
                                                                      Tel: (651) 244-1171
                                                                      Fax: (651) 244-0089
                                                                      E-Mail: toby.robillard@usbank.com

Dorsey & Whitney                                   Counsel:           Michael Reeslund, Esq.
50 South Sixth Street                                                 Tel: (612) 340-2960
Suite 1500                                                            Fax: (612) 340-8738
Minneapolis, MN 55402-1498                                            E-Mail: reeslund.mike@dorseylaw.com

U.S. Bank National Association                     Business           Edward Kachinski
100 Wall Street                                    Development:       Senior Vice President
16th Floor                                                            Tel: (212) 361-2548
New York, NY 10005                                                    Fax: (212) 514-6841
                                                                      E-Mail: Edward.kachinski@usbank.com
</Table><PAGE>
                                                                     EXHIBIT 4.1

                           MOBILITY ELECTRONICS, INC.

             SERIES E PREFERRED STOCK AND WARRANT PURCHASE AGREEMENT

                                JANUARY 14, 2003

<PAGE>

                           MOBILITY ELECTRONICS, INC.

             SERIES E PREFERRED STOCK AND WARRANT PURCHASE AGREEMENT

         This Series E Preferred Stock and Warrant Purchase Agreement (the
"Agreement") is made as of January 14, 2003, by and between Mobility
Electronics, Inc., a Delaware corporation (the "Company"), and Dolphin Offshore
Partners, L.P. (the "Investor").

         The parties hereby agree as follows:

         1. PURCHASE AND SALE OF PREFERRED STOCK AND WARRANT.

                  1.1 SALE AND ISSUANCE OF SERIES E PREFERRED STOCK AND WARRANT.

                           (a) The Company is undertaking a private placement
(the "Offering") to "accredited investors" (as such term is defined in Section
501(a) of Regulation D promulgated under the Securities Act of 1933, as amended
(the "Act")) ("Accredited Investor") of up to 865,051 shares of Series E
Preferred Stock, par value $0.01 per share (the "Series E Stock") at a purchase
price of $0.7225 per share (the "Issuance Price") and up to 729,407 shares of
Series F Preferred Stock, par value $0.01 per share (the "Series F Stock") at a
purchase price of $0.85 per share. For each share of Series E Stock purchased by
an Accredited Investor in the Offering, such Accredited Investor will be issued,
for no additional cost, a warrant to purchase twenty-five percent (25%) of a
share of common stock, par value $0.01 per share, of the Company ("Common
Stock"), at an exercise price of $0.867 per share (the "Warrant Exercise
Price"). For each share of Series F Stock purchased by an Accredited Investor in
the Offering, such Accredited Investor will be issued, for no additional cost, a
warrant to purchase forty-seven percent (47%) of a share of common stock, par
value $0.01 per share, of the Company ("Common Stock"), at an exercise price of
$1.02 per share. The Series F Stock portion of the Offering has been developed
in order to permit the Company's officers and directors, and their affiliates,
to participate in the Offering without obtaining stockholder approval pursuant
to NASD Rule 4350, and will be offered only to the Company's officers and
directors, and their affiliates. The Offering may be closed at one or more
closings.

                           (b) The Company has adopted and filed with the
Secretary of State of the State of Delaware a Certificate of the Designations,
Preferences, Rights and Limitations of Series E Preferred Stock of the Company,
a copy of which is attached hereto as Exhibit A (the "Certificate of
Designations").

                           (c) The Company has adopted and filed with the
Secretary of State of the State of Delaware a Certificate of the Designations,
Preferences, Rights and Limitations of Series F Preferred Stock of the Company,
a copy of which is attached hereto as Exhibit A-2 (the "Series F Designations").

                           (d) Subject to the terms and conditions of this
Agreement, Investor agrees to purchase at the Closing (as defined below) and the
Company agrees to sell and issue to Purchaser at the Closing 865,051 shares of
Series E Stock at the Issuance Price per share, for an

                                       1
<PAGE>

aggregate purchase price of $624,999.35. The shares of Series E Stock issued to
Purchaser pursuant to this Agreement shall be hereinafter referred to as the
"Stock".

                           (e) Subject to the terms and conditions of this
Agreement, at the Closing the Company agrees to issue to Purchaser, at no
additional cost, a warrant to purchase up to 216,263 shares of Common Stock, at
the Warrant Exercise Price per share, which warrant shall be in the form of
Exhibit B attached hereto (the "Warrant"). The Stock and Warrant are sometimes
collectively referred to herein as the "Securities".

                           (f) Notwithstanding any provision in this Agreement
or the Certificate of Designations to the contrary, Purchaser (i) expressly
acknowledges that the issuance consideration for the Series E Stock and Series F
Stock are different, (ii) expressly acknowledges that a purchaser of a share of
Series F Stock will receive warrants to purchase more shares of Common Stock
than a purchaser of a share of Series E Stock, and (iii) consents to the
authorization and issuance by the Company of the Series F Stock in the Offering
and any future issuance of Series F Stock as payment of any dividends required
to be paid to holders of Series F Stock under the Series F Designations.

                           (g) The Company hereby grants to Investor, with
respect to the shares of Common Stock underlying the Stock and the Warrants,
registration rights as set forth in Exhibit C; it being specifically agreed and
understood that the shares of Common Stock underlying the Stock and Warrant will
be included in any registration statement filed by the Company which includes
shares of Common Stock underlying other shares of Series E Stock, Series F Stock
and Common Stock Purchase Warrants sold to Accredited Investors in the Offering.

                  1.2 CLOSING; DELIVERY.

                           (a) The purchase and sale of the Stock shall take
place at the offices of the Company, 17800 N. Perimeter Drive, Suite 200,
Scottsdale, Arizona 85255, at 10:00 a.m. (Scottsdale time), on the date hereof,
or at such other time and place as the Company and Investor agree upon, orally
or in writing (which time and place are designated as the "Closing").

                           (b) At the Closing, the Company shall deliver to
Investor: (i) a certificate representing the Stock being purchased hereby; and
(ii) the Warrant, against payment of $624,999.35 by wire transfer to the
Company's bank account.

         2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company hereby
represents and warrants to Investor that, except as set forth on a Schedule of
Exceptions attached hereto as Exhibit D, which exceptions shall be deemed to be
representations and warranties as if made hereunder:

                  2.1 ORGANIZATION AND GOOD STANDING. The Company is a
corporation duly organized, validly existing and in good standing under the laws
of the state of Delaware, with all requisite corporate power and authority to
carry on the business in which it is engaged, to own the properties it owns, to
execute and deliver this Agreement and to consummate the transactions
contemplated hereby.

                                       2
<PAGE>

                  2.2 AUTHORIZATION AND VALIDITY. The execution, delivery and
performance by the Company of this Agreement and the Warrant, and the
consummation of the transactions contemplated hereby, have been duly authorized
by the Company. This Agreement and the Warrant have been duly executed and
delivered by the Company and constitute legal, valid and binding obligations of
the Company, enforceable against the Company in accordance with their respective
terms, except as may be limited by applicable bankruptcy, insolvency or similar
laws affecting creditors' rights generally or the availability of equitable
remedies.

                  2.3 NO VIOLATION. Neither the execution, delivery or
performance of this Agreement or the Warrant nor the consummation of the
transactions contemplated hereby or thereby will (a) conflict with, or result in
a violation or breach of the terms, conditions and provisions of, or constitute
a default under, the Certificate of Incorporation, as amended, or Bylaws of the
Company or any agreement, indenture or other instrument under which the Company
is bound or (b) violate or conflict with any judgment, decree, order, statute,
rule or regulation of any court or any public, governmental or regulatory agency
or body having jurisdiction over the Company or the properties or assets of the
Company.

                  2.4 FINDER'S FEE. Except as described in Section 7.5 below,
the Company has not incurred any obligation for any finder's, broker's or
agent's fee in connection with the transactions contemplated hereby.

                  2.5 CAPITALIZATION; AUTHORIZATION FOR THE SECURITIES. The
authorized and issued capital stock of the Company are set forth on Exhibit D.
No shares of the stock of the Company are held in the treasury of the Company.
Except as set forth on Exhibit D, there exists no options, warrants,
subscriptions or other rights to purchase, or securities convertible into or
changeable for, the stock of the Company. Except as set forth on Exhibit D,
there exists no rights in favor of any third party to require the Company to
register securities owned by or to be issued to such third party. No shares of
capital stock of the Company have been issued or disposed of in violation of the
preemptive rights of any of the Company's stockholders. The Company has taken
all action necessary to permit it to issue the Stock, Warrant and the shares of
Common Stock underlying the Stock and the Warrant. The Stock and the shares of
Common Stock underlying the Stock and the Warrant when issued pursuant to this
Agreement and/or when converted under the Stock or exercised under the Warrant
(as applicable) will, when issued, be duly authorized, validly issued, fully
paid and nonassessable, free and clear of any liens, claims, charges or security
interests and no stockholder of the Company will have any preemptive right of
subscription or purchase in respect thereof.

                  2.6 SEC REPORTS. Since January 1, 2001, the Company has filed
all forms, documents and reports with the Securities and Exchange Commission
(the "SEC") required to be filed by it pursuant to federal securities laws and
the SEC rules and regulations thereunder (the "SEC Reports"), all of which
complied in all material respects with all applicable requirements of the
Securities Act and the Securities Exchange Act of 1934, as amended. The SEC
Reports do not contain any untrue statement of a material fact or omit to state
a material fact required to be stated therein to make the statements contained
therein not misleading.

                  2.7 FINANCIAL STATEMENTS. The consolidated balance sheets and
the related statements of income, stockholders' equity and cash flow (including
the related notes thereto) of

                                       3
<PAGE>

the Company and its consolidated subsidiaries included in the SEC Reports
complied as to form in all material respects with applicable accounting
requirements and the published rules and regulations of the SEC with respect
thereto, have been prepared in accordance with generally accepted accounting
principles applied on a basis consistent with prior periods (except as otherwise
noted therein) and present fairly the consolidated financial position of the
Company and its consolidated subsidiaries as of their respective dates, and the
results of their operations and their cash flow for the periods presented
therein.

                  2.8 OFFERING. Subject in part to the truth and accuracy of
Investor's representations and warranties set forth in Section 3 of this
Agreement, the offer, sale and issuance of the Securities as contemplated by
this Agreement are exempt from the registration requirements of the Securities
Act and any applicable state securities laws, and neither the Company nor any
authorized agent acting on its behalf will take any action hereafter that would
cause the loss of such exemption.

                  2.9 NASD RULE 4350. The purchase in the Offering of the Series
F Stock by the Company's officers and directors, and their affiliates, pursuant
to the terms of those certain Series F Preferred Stock and Warrant Purchase
Agreements dated as of the date of this Agreement does not require the approval
of the Company's stockholders under NASD Rule 4350.

         3. REPRESENTATIONS AND WARRANTIES OF INVESTOR. Investor hereby
represents and warrants to the Company that:

                  3.1 AUTHORIZATION. Investor has full power and authority to
enter into this Agreement. This Agreement constitutes the valid and legally
binding obligation of Investor, enforceable in accordance with its terms, except
as limited by applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance, and any other laws of general application affecting
enforcement of creditors' rights generally, and as limited by laws relating to
the availability of a specific performance, injunctive relief, or other
equitable remedies.

                  3.2 PURCHASE ENTIRELY FOR OWN ACCOUNT. This Agreement is made
with Investor in reliance upon Investor's representation to the Company, which
by Investor's execution of this Agreement Investor hereby confirms, that the
Securities to be acquired by Investor will be acquired for investment for
Investor's own account, not as a nominee or agent, and not with a view to the
resale or distribution of any part thereof, and that Investor has no present
intention of selling, granting any participation in, or otherwise distributing
the same. By executing this Agreement, Investor further represents that Investor
does not presently have any contract, undertaking, agreement or arrangement with
any person to sell, transfer or grant participation to such person or to any
third person, with respect to any of the Securities. Investor has not been
formed for the specific purpose of acquiring the Securities.

                  3.3 DISCLOSURE OF INFORMATION. Investor has had an opportunity
to discuss the Company's business, management, financial affairs and the terms
and conditions of the offering of the Securities with the Company's management.
Investor understands that such discussions, as well as any other written
information delivered by the Company to Investor, were intended to describe the
aspects of the Company's business which it believes to be material.

                                       4
<PAGE>

                  3.4 RESTRICTED SECURITIES. Investor understands that the
Securities and the shares of Common Stock underlying the Securities have not
been registered under the Securities Act, by reason of a specific exemption from
the registration provisions of the Securities Act which depends upon, among
other things, the bona fide nature of the investment intent and the accuracy of
Investor's representations as expressed herein. Investor understands that the
Securities, and the shares of Common Stock underlying the Securities are
"restricted securities" under applicable United States federal and state
securities laws and that, pursuant to these laws, Investor must hold the
Securities indefinitely unless they are registered with the SEC and qualified by
state authorities, or an exemption from such registration and qualification
requirements is available. Investor acknowledges that the Company has no
obligation to register or qualify the Securities for resale except as set forth
in Exhibit C. Investor further acknowledges that if an exemption from
registration or qualification is available, it may be conditioned on various
requirements including, but not limited to, the time and manner of sale, the
holding period for the Securities, and on requirements relating to the Company
which are outside of Investor's control, and which the Company is under no
obligation and may not be able to satisfy.

                  3.5 NO PUBLIC MARKET. Purchaser understands that no public
market now exists, or will ever exist, for the Securities.

                  3.6 LEGENDS. Purchaser understands that the Securities, and
the shares of Common Stock underlying the Securities, may bear one or all of the
following legends (or substantially similar legends):

                           (a) "THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN
ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE
OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A
FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER
THE SECURITIES ACT OF 1933."

                           (b) Any legend required by the Blue Sky laws of any
state to the extent such laws are applicable to the shares represented by the
certificate so legended.

                  3.7 ACCREDITED INVESTOR. Investor is an Accredited Investor.

         4. CONDITIONS OF THE INVESTOR'S OBLIGATIONS AT CLOSING. The obligations
of Investor to the Company under this Agreement are subject to the fulfillment,
on or before the Closing, of each of the following conditions, unless otherwise
waived:

                  4.1 CONSENTS; QUALIFICATIONS. The Company shall have obtained
any and all consents, permits and waivers necessary or appropriate for
consummation of the transactions contemplated by this Agreement and the Warrant
(except for such as may be properly obtained subsequent to the Closing Date).
All authorizations, approvals or permits, if any, of any governmental authority
or regulatory body of the United States or of any state that are required in

                                       5
<PAGE>

connection with the lawful issuance and sale of the Securities pursuant to this
Agreement shall be obtained and effective as of the Closing.

                  4.2 OPINION OF COMPANY COUNSEL. The Company shall have
received from Jackson Walker L.L.P., counsel for the Company, an opinion, dated
as of the Closing, in substantially the form of Exhibit E. ---------

                  4.3 RESERVATION OF COMMON STOCK ISSUABLE UPON CONVERSION OF
THE STOCK AND EXERCISE OF THE WARRANT. The Common Stock issuable upon conversion
of the Stock and exercise of the Warrant shall have been duly authorized and
reserved for issuance upon such conversion.

         5. CONDITIONS OF THE COMPANY'S OBLIGATIONS AT CLOSING. The obligations
of the Company to Investor under this Agreement are subject to the fulfillment,
on or before the Closing, of each of the following conditions, unless otherwise
waived:

                  5.1 QUALIFICATIONS. All authorizations, approvals or permits,
if any, of any governmental authority or regulatory body of the United States or
of any state that are required in connection with the lawful issuance and sale
of the Stock and the Warrant pursuant to this Agreement shall be obtained and
effective as of the Closing.

         6. EXCHANGE RIGHT. In the event that on or prior to January 13, 2004,
the Company issues any capital stock or capital stock equivalent of the Company
in a private placement, then the Company shall give Investor written notice of
such issuance, and Investor shall have a period of ten (10) days thereafter to
convert the Stock and Warrant into the securities issued in such subsequent
placement or offering, which conversion election shall be made in writing by
Investor, and such election shall be accompanied by the original certificate(s)
representing the Stock and the original Warrant issued to Investor in the
Offering.

         7. MISCELLANEOUS.

                  7.1 SURVIVAL OF WARRANTIES AND COVENANTS. The warranties and
representations of the Company and Investor contained in or made pursuant to
this Agreement shall survive the execution and delivery of this Agreement and
the Closing for a period of one (1) year following the Closing. The covenants
set forth in this Agreement shall survive the Closing.

                  7.2 TRANSFER; SUCCESSORS AND ASSIGNS. The terms and conditions
of this Agreement shall inure to the benefit of and be binding upon the
respective successors and assigns of the parties. Nothing in this Agreement,
express or implied, is intended to confer upon any party other than the parties
hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as
expressly provided in this Agreement.

                  7.3 GOVERNING LAW. This Agreement and all acts and
transactions pursuant hereto and the rights and obligations of the parties
hereto shall be governed, construed and interpreted in accordance with the laws
of the State of Delaware, without giving effect to principles of conflicts of
law.

                                       6
<PAGE>

                  7.4 NOTICES. Any notice required or permitted by this
Agreement shall be in writing and shall be deemed sufficient upon delivery, when
delivered personally or by overnight courier or sent by telegram or fax, or
forty-eight (48) hours after being deposited in the United States mail, as
certified or registered mail, with postage prepaid, addressed to the party to be
notified at such party's address as set forth on the signature page hereto, or
as subsequently modified by written notice.

                  7.5 FINDER'S FEE. Each party represents that it neither is nor
will be obligated for any finder's fee or commission in connection with
Investor's investment hereunder. Investor agrees to indemnify and to hold
harmless the Company from any liability for any commission or compensation in
the nature of a finder's fee (and the costs and expenses of defending against
such liability or asserted liability) for which Investor or any of its officers,
employees, or representatives is responsible. The Company agrees to indemnify
and hold harmless Investor from any liability for any commission or compensation
in the nature of a finder's fee (and the costs and expenses of defending against
such liability or asserted liability) for which the Company or any of its
officers, employees or representatives is responsible.

                  7.6 FEES AND EXPENSES. Each party shall be responsible for any
fees or expenses, incurred by it with respect to this Agreement, the documents
referred to herein and the transactions contemplated hereby and thereby.

                  7.7 ATTORNEY'S FEES. If any action at law or in equity
(including arbitration) is necessary to enforce or interpret the terms of any of
the Agreements, the prevailing party shall be entitled to reasonable attorney's
fees, costs and necessary disbursements in addition to any other relief to which
such party may be entitled.

                  7.8 AMENDMENTS AND WAIVERS. Any term of this Agreement may be
amended or waived only with the written consent of the Company and Investor.

                  7.9 SEVERABILITY. If one or more provisions of this Agreement
are held to be unenforceable under applicable law, the parties agree to
renegotiate such provision in good faith. In the event that the parties cannot
reach a mutually agreeable and enforceable replacement for such provision, then
(a) such provision shall be excluded from this Agreement, (b) the balance of the
Agreement shall be interpreted as if such provision were so excluded and (c) the
balance of the Agreement shall be enforceable in accordance with its terms.

                  7.10 DELAYS OR OMISSIONS. No delay or omission to exercise any
right, power or remedy accruing to any party under this Agreement, upon any
breach or default of any other party under this Agreement, shall impair any such
right, power or remedy of such non-breaching or non-defaulting party nor shall
it be construed to be a waiver of any such breach or default, or an acquiescence
therein, or of or in any similar breach or default thereafter occurring; nor
shall any waiver of any single breach or default be deemed a waiver of any other
breach or default theretofore or thereafter occurring. Any waiver, permit,
consent or approval of any kind or character on the part of any party of any
breach or default under this Agreement, or any waiver on the part of any party
of any provisions or conditions of this Agreement, must be in writing and shall
be effective only to the extent specifically set forth in such writing. All
remedies,

                                       7
<PAGE>

either under this Agreement or by law or otherwise afforded to any party, shall
be cumulative and not alternative.

                  7.11 ENTIRE AGREEMENT. This Agreement, and the Exhibits
attached hereto, constitute the entire agreement between the parties hereto
pertaining to the subject matter hereof, and any and all other written or oral
agreements relating to the subject matter hereof existing between the parties
hereto are expressly canceled.

                  7.12 COUNTERPARTS. This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument.

                                       8
<PAGE>

         The parties have executed this Agreement as of the date first written
above.

                                   MOBILITY ELECTRONICS, INC.

                                   By: /s/ Charles R. Mollo
                                       Charles R. Mollo, Chief Executive Officer

                                   Address: 17800 N. Perimeter Drive, Suite 200
                                            Scottsdale, Arizona 85255

                                   DOLPHIN OFFSHORE PARTNERS, L.P.

                                    /s/ General Partner

                                   Address: 129 E. 17th Street
                                            New York, NY 10003

                                       9
<PAGE>

                                    EXHIBITS

Exhibit A -     Certificate of the Designations, Preferences, Rights and
                Limitations of Series E Preferred Stock

Exhibit A-2 -   Certificate of the Designations, Preferences, Rights and
                Limitations of Series F Preferred Stock

Exhibit B -     Form of Warrant

Exhibit C -     Registration Rights

Exhibit D -     Schedule of Exceptions to Representations and Warranties

Exhibit E -     Form of Legal Opinion of Jackson Walker L.L.P.

<PAGE>

                                    EXHIBIT C

                               REGISTRATION RIGHTS

                             [See attached document]

                                       C-1
<PAGE>

                               REGISTRATION RIGHTS

1. Definitions.

         (a) As used in this Exhibit C, the following terms shall have the
meanings specified below:

                  (i) "AFFILIATE," of any specified Person means any other
         Person who directly, or indirectly through one or more intermediaries,
         is in control of, is controlled by, or is under common control with,
         such specified Person. For purposes of this definition, control of a
         Person means the power, directly or indirectly, to direct or cause the
         direction of the management and policies of such Person whether by
         contract, securities ownership or otherwise; and the terms
         "controlling" and "controlled" have the respective meanings correlative
         to the foregoing.

                  (ii) "COMMISSION" means the Securities and Exchange
         Commission.

                  (iii) "EXCHANGE ACT" means the Securities Exchange Act of
         1934, as amended, and the rules and regulations of the Commission
         thereunder, or any similar successor statute.

                  (iv) "INVESTORS" means all persons and entities purchasing
         Securities from the Company pursuant to the terms and conditions of the
         Agreement or Stock Purchase Agreements in form and substance
         substantially similar to the Agreement (except as may otherwise be
         contemplated by the Agreement) and any permitted transferee or assignee
         of Registrable Securities who agrees to become bound by all of the
         terms and provisions of this Exhibit C and the applicable Stock
         Purchase Agreement.

                  (v) "PERSON" means any individual, partnership, corporation,
         limited liability company, joint stock company, association, trust,
         unincorporated organization, or a government agency or political
         subdivision thereof.

                  (vi) "PREFERRED STOCK" means the Series E Preferred Stock, par
         value $0.01 per share, and Series F Preferred Stock, par value $0.01
         per share, of the Company

                  (vii) "PROSPECTUS" means the prospectus (including any
         preliminary prospectus and/or any final prospectus filed pursuant to
         Rule 424(b) under the Securities Act and any prospectus that discloses
         information previously omitted from a prospectus filed as part of an
         effective registration statement in reliance on Rule 430A under the
         Securities Act) included in the Registration Statement, as amended or
         supplemented by any prospectus supplement with respect to the terms of
         the offering of any portion of the Registrable Securities covered by
         the Registration Statement and by all other amendments and supplements
         to such prospectus, including all material incorporated by reference in
         such prospectus and all documents filed after the date of such
         prospectus by the Company under the Exchange Act and incorporated by
         reference therein.

                                       1
<PAGE>

                  (viii) "PUBLIC OFFERING" means a firm commitment underwritten
         offering registered with the Commission and the appropriate state
         securities commissions by the Company of its Common Stock and made
         pursuant to the Securities Act.

                  (ix) "REGISTRABLE SECURITIES" means the shares of Common Stock
         underlying the Preferred Stock and Warrants purchased by Investors in
         the Offering; provided, however, a share of Common Stock shall cease to
         be a Registrable Security for purposes of this Exhibit C when it no
         longer is a Restricted Security.

                  (x) "REGISTRATION STATEMENT" means a registration statement of
         the Company filed on Form S-3 under the Securities Act providing for
         the registration of, and the sale on a continuous or delayed basis by
         the holders of, all of the Registrable Securities pursuant to Rule 415
         under the Securities Act, including the Prospectus contained therein
         and forming a part thereof, any amendments to such registration
         statement and supplements to such Prospectus, and all exhibits and
         other material incorporated by reference in such registration statement
         and Prospectus. In the event that Form S-3 is unavailable for such a
         registration, the Company shall use such other form as is available for
         such a registration.

                  (xi) "RESTRICTED SECURITY" means any share of Common Stock
         except any that (i) has been registered pursuant to an effective
         registration statement under the Securities Act and sold in a manner
         contemplated by the prospectus included in such registration statement,
         (ii) has been transferred in compliance with the resale provisions of
         Rule 144 under the Securities Act (or any successor provision thereto)
         or is transferable pursuant to paragraph (k) of Rule 144 under the
         Securities Act (or any successor provision thereto), or (iii) otherwise
         has been transferred and a new share of Common Stock not subject to
         transfer restrictions under the Securities Act has been delivered by or
         on behalf of the Company.

                  (xii) "SECURITIES ACT" means the Securities Act of 1933, as
         amended, and the rules and regulations of the Commission thereunder, or
         any similar successor statute.

                  (xiii) "STOCK PURCHASE AGREEMENTS" means the Series E
         Preferred Stock and Warrant Purchase Agreement to which this Exhibit C
         is attached and the other purchase agreements executed as part of the
         Offering.

                  (xiv) "WARRANTS" means the Warrants to Purchase Shares of
         Common Stock issued to Investors in the Offering.

         (b) All capitalized terms used and not defined herein have the
respective meaning assigned to them in the Agreement to which this Exhibit C is
attached.

2. Registration.

         (a) Filing and Effectiveness of Registration Statement. The Company
shall prepare and file with the Commission not later than twenty days following
the initial closing (the "Initial Closing") of sales of Offered Shares and
Warrants under the Offering (the "Filing Deadline") a Registration Statement
relating to the offer and sale of the Registrable Securities by the Investors

                                       2
<PAGE>

and shall use all commercially reasonable efforts to cause the Commission to
declare such Registration Statement effective under the Securities Act as
promptly as practicable, but not later than 120 days after the Initial Closing.
All of the shares of Common Stock sold in the Offering shall be included in such
Registration Statement; provided, however, that the Company shall not be
required to include in the Registration Statement Registrable Securities of any
Investor who has failed to provide the Company with the information pertaining
to such Investor that is required to be included in such Registration Statement
pursuant to Item 507 and/or Item 508 of Regulation S-K. The Company shall notify
the Investors in writing by telecopy or e-mail notice that such Registration
Statement has been declared effective by the Commission on the date of such
declaration by the Commission. The Company agrees to keep such Registration
Statement effective until the earlier of: (i) the passage of two years from the
effective date of such Registration Statement; or (ii) the date on which all
Registrable Securities may be resold by all Investors by reason of Rule 144(k)
under the Securities Act or any other rule of similar effect.

         (b) Piggyback Registration Rights. (i) Without limiting the obligations
of the Company pursuant to Section 2(a) above, until such date as the
Registration Statement to be filed in accordance with Section 2(a) is declared
effective by the Commission, if the Company proposes to register any of its
Common Stock or any other shares of common stock of the Company under the
Securities Act (other than a registration (A) on Form S-8 or S-4 or any
successor or similar forms, (B) relating to Common Stock or any other shares of
common stock of the Company issuable upon exercise of employee or consultant
share options or in connection with any employee benefit or similar plan of the
Company or (C) in connection with a direct or indirect acquisition by the
Company of another Person or any transaction with respect to which Rule 145 (or
any successor provision) under the Securities Act applies), whether or not for
sale for its own account, it will each such time, give prompt written notice at
least 20 days prior to the anticipated filing date of the registration statement
relating to such registration to the Investors, which notice shall set forth
such Investors' rights under this Section 2(c) and shall offer the Investors the
opportunity to include in such registration statement such number of Registrable
Securities as the Investors may request. Upon the written request of an Investor
made within 10 days after the receipt of notice from the Company (which request
shall specify the number of Registrable Securities intended to be disposed of by
such Investors), the Company will use all reasonable commercial efforts to
effect the registration under the Securities Act of all Registrable Securities
that the Company has been so requested to register by the Investors, to the
extent requisite to permit the disposition of the Registrable Securities to be
so registered; provided, however, that (A) if such registration involves a
Public Offering, the Investors must sell their Registrable Securities to the
underwriters on the same terms and conditions as apply to the Company and (B)
if, at any time after giving written notice of its intention to register any
Common Stock pursuant to this Section 2(b) and prior to the effective date of
the registration statement filed in connection with such registration, the
Company shall determine for any reason not to register such Common Stock, the
Company shall give written notice to the Investors and, thereupon, shall be
relieved of its obligation to register any Registrable Securities in connection
with such registration. The Company's obligations under this Section 2(b) shall
terminate on the date that the Registration Statement to be filed in accordance
with Section 2(a) is declared effective by the Commission. (ii) If a
registration pursuant to this Section 2(b) involves a Public Offering and the
managing underwriter thereof advises the Company that, in its view, the number
of shares of Common Stock, if any, or other shares of Common Stock that the
Company and the Investors intend to include in such registration exceeds the
largest number of shares of

                                       3
<PAGE>

Common Stock (including any other shares of Common Stock or warrants of the
Company) that can be sold without having a material adverse effect on such
Public Offering (the "Maximum Offering Size"), the Company will include in such
registration only that number of shares of Common Stock which does not exceed
the Maximum Offering Size, in the following order of priorities: (1) first, all
securities the Company proposes to sell for its own account, (2) second, up to
the full number of securities proposed to be registered for the account of the
holders of securities entitled to inclusion of their securities in the
Registration Statement by reason of demand registration rights, and (3) third,
the securities requested to be registered by other holders of securities
entitled to participate in the registration, drawn from them pro-rata based on
the number of shares each has requested to be included in such registration and
the Investors pursuant to this Exhibit C. If as a result of the proration
provisions of this Section 2(b), the Investors are not entitled to include all
such Registrable Securities in such registration, such Investors may elect to
withdraw their request to include any Registrable Securities in such
registration.

         Notwithstanding the foregoing, the Company shall have no obligations
under this Section 2(b) hereof at any time that such Registrable Securities are
the subject of an effective registration statement.

3. Obligations of the Company. In connection with the registration of the
Registrable Securities, the Company shall use all commercially reasonable
efforts to:

         (a) Subject to the provisions of Section 3(q) hereof, promptly (i)
prepare and file with the Commission such amendments (including post-effective
amendments) to the Registration Statement and supplements to the Prospectus as
may be necessary to keep the Registration Statement continuously effective and
in compliance with the provisions of the Securities Act applicable thereto so as
to permit the Prospectus forming part thereof to be current and useable by
Investors for resales of the Registrable Securities for a period of two years
from the date the Registration Statement is first declared effective by the
Commission (the "Effective Time") or such shorter period that will terminate
when all the Registrable Securities covered by the Registration Statement have
been sold pursuant thereto in accordance with the plan of distribution provided
in the Prospectus or otherwise cease to be Registrable Securities (the
"Registration Period") and (ii) take all lawful action such that each of (A) the
Registration Statement and any amendment thereto does not, when it becomes
effective, contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein, not misleading and (B) the Prospectus forming part of the Registration
Statement, and any amendment or supplement thereto, does not at any time during
the Registration Period include an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading. Notwithstanding the foregoing, the Company's obligations
hereunder shall terminate as to any investor at such time as that Investor's
Registrable Securities can be sold under Rule 144(k);

         (b) During the Registration Period, comply with the provisions of the
Securities Act with respect to the Registrable Securities of the Company covered
by the Registration Statement until such time as all of such Registrable
Securities have been disposed of in accordance with the

                                       4
<PAGE>

intended methods of disposition by the Investors as set forth in the Prospectus
forming part of the Registration Statement;

         (c) (i) Prior to the filing with the Commission of any Registration
Statement (including any amendments thereto) and the distribution or delivery of
any Prospectus (including any supplements thereto), provide draft copies thereof
to the Investors and reflect in such documents all such comments as the
Investors reasonably may propose (including comments as to the Investors' plans
of distribution); and (ii) furnish to each Investor whose Registrable Securities
are included in the Registration Statement, (A) promptly after the same is
prepared and publicly distributed, filed with the Commission, or received by the
Company, one copy of the Registration Statement, each Prospectus, and each
amendment or supplement thereto, and (B) such number of copies of the Prospectus
and all amendments and supplements thereto and such other documents, as such
Investor may reasonably request in order to facilitate the disposition of the
Registrable Securities owned by such Investor;

         (d) (i) Register or qualify the Registrable Securities covered by the
Registration Statement under such securities or "blue sky" laws of all
jurisdictions requiring blue sky registration or qualification, (ii) prepare and
file in such jurisdictions such amendments (including post-effective amendments)
and supplements to such registrations and qualifications as may be reasonably
necessary to maintain the effectiveness thereof at all times during the
Registration Period, (iii) take all such other lawful actions as may be
reasonably necessary to maintain such registrations and qualifications in effect
at all times during the Registration Period, and (iv) take all such other lawful
actions reasonably necessary or advisable to qualify the Registrable Securities
for sale in such jurisdictions; provided, however, that the Company shall not be
required in connection with any of its obligations under this Section 3(d) to
(A) qualify to do business in any jurisdiction where it would not otherwise be
required to qualify but for this Section 3(d), (B) subject itself to general
taxation in any such jurisdiction or (C) file a general consent to service of
process in any such jurisdiction;

         (e) As promptly as practicable after becoming aware of such event,
notify each Investor of the occurrence of any event, as a result of which the
Prospectus included in the Registration Statement, as then in effect, includes
an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading, and
promptly prepare an amendment to the Registration Statement and supplement to
the Prospectus to correct such untrue statement or omission, and deliver a
number of copies of such supplement and amendment to each Investor as such
Investor may reasonably request;

         (f) Notify each Investor who holds Registrable Securities being sold
(or, in the event of an underwritten offering, the managing underwriters) of the
issuance by the Commission of any stop order or other suspension of the
effectiveness of the Registration Statement on the date of receipt of any such
stop order or other suspension, and take all lawful action to effect the
withdrawal, recession or removal of such stop order or other suspension;

         (g) Cause all the Registrable Securities covered by the Registration
Statement to be listed, not later than the date that Registration Statement is
declared effective by the Commission, on a principal national securities
exchange, or included in an inter-dealer quotation

                                       5
<PAGE>

system of a registered national securities association, on or in which
securities of the same class or series issued by the Company are then listed or
included;

         (h) Maintain a transfer agent and registrar, which may be a single
entity, for the Registrable Securities not later than the effective date of the
Registration Statement;

         (i) Reasonably cooperate with the Investors who hold Registrable
Securities being offered to facilitate the timely preparation and delivery of
certificates for the Registrable Securities to be offered pursuant to the
Registration Statement and enable such certificates for the Registrable
Securities to be in such denominations or amounts, as the case may be, as the
Investors reasonably may request and registered in such names as the Investors
may request; and, within five business days after a registration statement which
includes Registrable Securities is declared effective by the Commission, deliver
and cause legal counsel selected by the Company to deliver to the transfer agent
for the Registrable Securities (with copies to the Investors whose Registrable
Securities are included in such registration statement) an appropriate
instruction and, to the extent necessary, an opinion of such counsel;

         (j) Take all such other lawful actions reasonably necessary to expedite
and facilitate the disposition by the Investors of their Registrable Securities
in accordance with the intended methods therefor provided in the Prospectus
which are customary under the circumstances;

         (k) Make generally available to its security holders as soon as
practicable, but in any event not later than three (3) months after (i) the
effective date (as defined in Rule 158(c) under the Securities Act) of the
Registration Statement, and (ii) the effective date of each post-effective
amendment to the Registration Statement, as the case may be, an earnings
statement of the Company and its subsidiaries complying with Section 11(a) of
the Securities Act and the rules and regulations of the Commission thereunder
(including, at the option of the Company, Rule 158);

         (l) In the event of an underwritten offering, promptly include or
incorporate in a Prospectus supplement or post-effective amendment to the
Registration Statement such information as the managers reasonably agree should
be included therein and to which the Company does not reasonably object and make
all required filings of such Prospectus supplement or post-effective amendment
as soon as practicable after it is notified of the matters to be included or
incorporated in such Prospectus supplement or post-effective amendment;

         (m) In connection with any underwritten offering, make such
representations and warranties to the Investors participating in such
underwritten offering and to the managers, in form, substance and scope as are
customarily made by the Company to underwriters in secondary underwritten
offerings;

         (n) In connection with any underwritten offering, obtain opinions of
counsel to the Company (which counsel and opinions (in form, scope and
substance) shall be reasonably satisfactory to the managers) addressed to the
underwriters, covering such matters as are customarily covered in opinions
requested in secondary underwritten offerings (it being agreed that the matters
to be covered by such opinions shall include, without limitation, as of the date
of the opinion and as of the date the Registration Statement is first declared
effective or most recent

                                       6
<PAGE>

post- effective amendment thereto, as the case may be, the absence from the
Registration Statement and the Prospectus, including any documents incorporated
by reference therein, of an untrue statement of a material fact or the omission
of a material fact required to be stated therein or necessary to make the
statements therein (in the case of the Prospectus, in light of the circumstances
under which they were made) not misleading, subject to customary limitations);

         (o) In connection with any underwritten offering, obtain "cold comfort"
letters and updates thereof from the independent public accountants of the
Company (and, if necessary, from the independent public accountants of any
subsidiary of the Company or of any business acquired by the Company, in each
case for which financial statements and financial data are, or are required to
be, included in the Registration Statement), addressed to each underwriter
participating in such underwritten offering (if such underwriter has provided
such letter, representations or documentation, if any, required for such cold
comfort letter to be so addressed), in customary form and covering matters of
the type customarily covered in "cold comfort" letters in connection with
secondary underwritten offerings;

         (p) In connection with any underwritten offering, deliver such
documents and certificates as may be reasonably required by the managers, if
any;

         (q) Notwithstanding anything to the contrary in Section 3, at any time
after the Registration Statement has been declared effective, the Company may
delay the disclosure of material non-public information concerning the Company,
the disclosure of which at the time is not, in the good faith opinion of the
Board of Directors of the Company and its counsel, in the best interest of the
Company (a "Grace Period"); provided, that the Company shall promptly (i) notify
the Investors in writing of the existence of material non-public information
giving rise to a Grace Period and the date on which the Grace Period will begin,
and (ii) notify the Investors in writing in advance of, or on the same date on
which, the Grace Period ends; and, provided further, that during the
Registration Period, there shall be only three Grace Periods (not to exceed 30
days each) nor more than one Grace Period (not to exceed 30 days each) in any
six-month period. For purposes of determining the length of a Grace Period
above, the Grace Period shall begin on and include the date the holders receive
the notice referred to in clause (i) and shall end on and include the date
specified as the Grace Period ending date in the notice referred to in clause
(ii).

         Notwithstanding the foregoing, the Company shall have no obligations
under Section 3(l) through (p) unless it is effecting an underwritten offering
pursuant to Section 2(b).

4. Obligations of the Investors. In connection with the registration of the
Registrable Securities, the Investors shall have the following obligations,
which obligations shall be several and not joint:

         (a) It shall be a condition precedent to the obligations of the Company
to complete the registration pursuant to this Exhibit C with respect to the
Registrable Securities of a particular Investor that such Investor shall furnish
to the Company such information regarding itself, the Registrable Securities
held by it and the intended method of disposition of the Registrable Securities
held by it as shall be reasonably required to effect the registration of such

                                       7
<PAGE>

Registrable Securities and shall execute such documents in connection with such
registration as the Company may reasonably request.

         (b) Each Investor by its acceptance of the Registrable Securities
agrees to cooperate in all reasonable respects with the Company in connection
with the preparation and filing of the Registration Statement hereunder, unless
such Investor has notified the Company in writing of its election to exclude all
of its Registrable Securities from the Registration Statement;

         (c) As promptly as practicable after becoming aware of such event,
notify the Company of the occurrence of any event, as a result of which the
Prospectus included in the Registration Statement, as then in effect, includes
an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading; and

         (d) Each Investor agrees that, upon receipt of any notice from the
Company of the occurrence of any event of the kind described in Section 3(e) or
3(f), it shall immediately discontinue its disposition of Registrable Securities
pursuant to the Registration Statement covering such Registrable Securities
until such Investor's receipt of the copies of the supplemented or amended
Prospectus contemplated by Section 3(e) and, if so directed by the Company, such
Investor shall deliver to the Company (at the expense of the Company) or destroy
(and deliver to the Company a certificate of destruction) all copies in such
Investor's possession, of the Prospectus covering such Registrable Securities
current at the time of receipt of such notice.

5. Expenses of Registration. All expenses, other than underwriting discounts and
commissions arising from sales of Registrable Securities, incurred in connection
with registrations, filings or qualifications pursuant to Section 3, but
including, without limitation, all registration, listing, and qualifications
fees, printing and engraving fees and accounting fees shall be borne by the
Company.

6. Indemnification and Contribution.

         (a) The Company shall indemnify and hold harmless each Investor and
each underwriter, if any, which facilitates the disposition of Registrable
Securities, and each of their respective officers and directors, trustees,
employees, advisors, legal counsel and accountants and each person who controls
such Investor or underwriter within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act (each such person being sometimes
hereinafter referred to as an "Indemnified Person") from and against any losses,
claims, damages or liabilities, joint or several, to which such Indemnified
Person may become subject under the Securities Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon an untrue statement or alleged untrue statement of a
material fact contained in any Registration Statement or an omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein, not misleading, or arise out of or are
based upon an untrue statement or alleged untrue statement of a material fact
contained in any Prospectus or an omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; and the

                                       8
<PAGE>

Company hereby agrees to reimburse such Indemnified Person for all reasonable
legal and other expenses incurred by them in connection with investigating or
defending any such action or claim as and when such expenses are incurred;
provided, however, that the Company shall not be liable to any such Indemnified
Person in any such case to the extent that any such loss, claim, damage or
liability arises out of or is based upon (i) an untrue statement or alleged
untrue statement made in, or an omission or alleged omission from, such
Registration Statement or Prospectus in reliance upon and in conformity with
written information furnished to the Company by such Indemnified Person
expressly for use therein or (ii) in the case of the occurrence of an event of
the type specified in Section 3(e), the use by the Indemnified Person of an
outdated or defective Prospectus after the Company has provided to such
Indemnified Person written notice that such Prospectus is outdated or defective.

         (b) Indemnification by the Investors and Underwriters. Each Investor
agrees, as a consequence of the inclusion of any of its Registrable Securities
in a Registration Statement, and each underwriter, if any, which facilitates the
disposition of Registrable Securities shall agree, as a consequence of
facilitating such disposition of Registrable Securities, severally and not
jointly, to (i) indemnify and hold harmless the Company, its directors
(including any person who, with his or her consent, is named in the Registration
Statement as a director nominee of the Company), its officers, employees,
advisors, legal counsel and accountants and each person, if any, who controls
the Company within the meaning of either Section 15 of the Securities Act or
Section 20 of the Exchange Act, against any losses, claims, damages or
liabilities to which the Company or such other persons may become subject, under
the Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon: (y)
an untrue statement or alleged untrue statement of a material fact contained in
such Registration Statement or Prospectus or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein (in light of the
circumstances under which they were made, in the case of the Prospectus), not
misleading, in each case to the extent, but only to the extent, that such untrue
statement or alleged untrue statement or omission or alleged omission was made
in reliance upon and in conformity with written information furnished to the
Company by such Investor or underwriter expressly for use therein; or (z) in the
case of the occurrence of an event of the type specified in Section 3(e) above,
the use by the Indemnified Person of an outdated or defective Prospectus after
the Indemnified Person has received from the Company written notice that such
Prospectus is outdated or defective; provided, however, that no Investor or
underwriter shall be liable under this Section 6(b) for any amount in excess of
the net proceeds paid to such Investor or underwriter in respect of shares sold
by it; and (ii) reimburse the Company for any reasonable legal or other expenses
incurred by the Company in connection with investigating or defending any such
action or claim as such expenses are incurred.

         (c) Notice of Claims, Etc. Promptly after receipt by a party seeking
indemnification pursuant to this Section 6 (an "Indemnified Party") of written
notice of any investigation, claim, proceeding or other action in respect of
which indemnification is being sought (each, a "Claim"), the Indemnified Party
shall notify the party against whom indemnification pursuant to this Section 6
is being sought (the "Indemnifying Party") of the commencement thereof; but the
omission to so notify the Indemnifying Party shall not relieve it from any
liability that it otherwise may have to the Indemnified Party, except to the
extent that the Indemnifying Party is materially prejudiced and forfeits
substantive rights and defenses by reason of such failure. In

                                       9
<PAGE>

connection with any Claim as to which both the Indemnifying Party and the
Indemnified Party are parties, the Indemnifying Party shall be entitled to
assume the defense thereof. Notwithstanding the assumption of the defense of any
Claim by the Indemnifying Party, the Indemnified Party shall have the right to
employ one separate legal counsel and to participate in the defense of such
Claim, and the Indemnifying Party shall bear the reasonable fees, out-of-pocket
costs and expenses of such separate legal counsel to the Indemnified Party if
(and only if): (i) the Indemnifying Party shall have agreed to pay such fees,
costs and expenses, (ii) counsel to the Indemnified Party shall reasonably have
concluded that representation of the Indemnified Party and the Indemnifying
Party by the same legal counsel would not be appropriate due to actual or, as
reasonably determined by legal counsel to the Indemnified Party, potentially
differing interests between such parties in the conduct of the defense of such
Claim, or if there may be legal defenses available to the Indemnified Party that
are in addition to or disparate from those available to the Indemnifying Party,
or (iii) the Indemnifying Party shall have failed to employ legal counsel
reasonably satisfactory to the Indemnified Party within a reasonable period of
time after notice of the commencement of such Claim. If the Indemnified Party
employs separate legal counsel in circumstances other than as described in
clauses (i), (ii) or (iii) above, the fees, costs and expenses of such legal
counsel shall be borne exclusively by the Indemnified Party. Except as provided
above, the Indemnifying Party shall not, in connection with any Claim in the
same jurisdiction, be liable for the fees and expenses of more than one firm of
counsel for the Indemnified Party (together with appropriate local counsel). The
Indemnified Party shall not, without the prior written consent of the
Indemnifying Party (which consent shall not unreasonably be withheld), settle or
compromise any Claim or consent to the entry of any judgment that does not
include an unconditional release of the Indemnifying Party from all liabilities
with respect to such Claim or judgment.

         (d) Contribution. If the indemnification provided for in this Section 6
is unavailable to or insufficient to hold harmless an Indemnified Person under
subsection (a) or (b) above in respect of any losses, claims, damages or
liabilities (or actions in respect thereof) referred to therein, then each
Indemnifying Party shall contribute to the amount paid or payable by such
Indemnified Party as a result of such losses, claims, damages or liabilities (or
actions in respect thereof) in such proportion as is appropriate to reflect the
relative fault of the Indemnifying Party and the Indemnified Party in connection
with the statements or omissions which resulted in such losses, claims, damages
or liabilities (or actions in respect thereof), as well as any other relevant
equitable considerations. The relative fault of such Indemnifying Party and
Indemnified Party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by
such Indemnifying Party or by such Indemnified Party, and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. The parties hereto agree that it would not be just
and equitable if contribution pursuant to this Section 6(d) were determined by
pro rata allocation (even if the Investors or any underwriters were treated as
one entity for such purpose) or by any other method of allocation which does not
take account of the equitable considerations referred to in this Section 6(d).
The amount paid or payable by an Indemnified Party as a result of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to above
shall be deemed to include any legal or other fees or expenses reasonably
incurred by such Indemnified Party in connection with investigating or defending
any such action or claim. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be

                                       10
<PAGE>

entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The obligations of the Investors and any underwriters in this
Section 6(d) to contribute shall be several in proportion to the percentage of
Registrable Securities registered or underwritten, as the case may be, by them
and not joint.

         (e) Notwithstanding any other provision of this Section 6, in no event
shall any (i) Investor be required to undertake liability to any person under
this Section 6 for any amounts in excess of the dollar amount of the net
proceeds to be received by such Investor from the sale of such Investor's
Registrable Securities pursuant to any Registration Statement under which such
Registrable Securities are to be registered under the Securities Act.

         (f) The obligations of the Company under this Section 6 shall be in
addition to any liability that the Company may otherwise have to any Indemnified
Person and the obligations of any Indemnified Person under this Section 6 shall
be in addition to any liability that such Indemnified Person may otherwise have
to the Company. The remedies provided in this Section 6 are not exclusive and
shall not limit any rights or remedies that may otherwise be available to an
indemnified party at law or in equity.

7. Rule 144. With a view to making available to the Investors the benefits of
Rule 144 under the Securities Act or any other similar rule or regulation of the
Commission that may at any time permit the Investors to sell securities of the
Company to the public without registration ("Rule 144"), the Company agrees to:

         (a) comply with the provisions of paragraph (c) (1) of Rule 144; and

         (b) use all commercially reasonable efforts to file with the Commission
in a timely manner all reports and other documents required to be filed by the
Company pursuant to Section 13 or 15(d) under the Exchange Act; and, if at any
time it is not required to file such reports but in the past had been required
to or did file such reports, it will, upon the request of any Investor, make
available other information as required by, and so long as necessary to permit
sales of, its Registrable Securities pursuant to Rule 144.

8. Assignment. The rights to have the Company register Registrable Securities
pursuant to this Exhibit C may be assigned or transferred only with the prior
written consent of the Company (which consent shall not be unreasonably withheld
or delayed), and any such assignment or transfer without such consent shall be
void and of no effect. Notwithstanding the foregoing, such consent of the
Company shall not be required with respect to: (i) any assignment or transfer of
Registrable Securities to an Affiliate of Investor, including for this purpose
if Investor is an investment company, any fund or account advised by Investor's
investment adviser or any Affiliate thereof; or (ii) any assignment or transfer
of all of the Registrable Securities owned by an Investor. In the event of any
such permitted assignment or transfer by the Investors to any permitted
transferee of all or any portion of such Registrable Securities such transfer
will be allowed only if: (a) the Investor agrees in writing with the transferee
or assignee to assign such rights, and a copy of such agreement is furnished to
the Company within a reasonable time after such assignment, (b) the Company is,
within a reasonable time after such transfer or assignment, furnished with
written notice of (i) the name and address of such transferee or assignee and
(ii) the securities with respect to which such registration rights are being
transferred or assigned, (c)

                                       11
<PAGE>

immediately following such transfer or assignment, the securities so transferred
or assigned to the transferee or assignee constitute Restricted Securities, (d)
at or before the time the Company received the written notice contemplated by
clause (b) of this sentence the transferee or assignee agrees in writing with
the Company to be bound by all of the provisions contained herein, and (e) the
Company is furnished with an opinion of counsel, which counsel and opinion shall
be reasonably satisfactory to the Company, to the effect that the permitted
assignment would be in compliance with the Securities Act and State Acts.

9. Amendment and Waiver. Any provision of this Exhibit C may be amended and the
observance thereof may be waived (either generally or in a particular instance
and either retroactively or prospectively), only with the written consent of the
Company and Investors who hold a majority interest of the Registrable
Securities. Any amendment or waiver effected in accordance with this Section 9
shall be binding upon each Investor and the Company.

10. Miscellaneous.

         (a) A person or entity shall be deemed to be a holder of Registrable
Securities whenever such person or entity owns of record such Registrable
Securities. If the Company receives conflicting instructions, notices or
elections from two or more persons or entities with respect to the same
Registrable Securities, the Company shall act upon the basis of instructions,
notice or election received from the registered owner of such Registrable
Securities.

         (b) Except as may be otherwise provided herein, any notice or other
communication or delivery required or permitted hereunder shall be in writing
and shall be delivered personally or sent by certified mail, postage prepaid, or
by a nationally recognized overnight courier service as follows, and shall be
deemed given three days following the date of mailing, in the case of a notice
sent by certified mail, or, in all other cases, when actually received.

          If to the Company, to:    Mobility Electronics, Inc.
                                    17800 N. Perimeter Drive, Suite 200
                                    Scottsdale, Arizona  85255
                                    Attention: Chief Financial Officer

          If to the Investors, to:  Each Investor at the address provided in its
                                    executed Stock Purchase Agreement

         The Company or any Investor may change the foregoing address by notice
given pursuant to this Section 10(b).

         (c) Failure of any party to exercise any right or remedy under this
Exhibit C or otherwise, or delay by a party in exercising such right or remedy,
shall not operate as a waiver thereof.

         (d) This Exhibit C shall be governed by and interpreted in accordance
with the laws of the State of Delaware, without regard to the conflict of laws
provisions thereof.

                                       12
<PAGE>

         (e) If any term, provision, covenant or restriction of this Exhibit C
is held by a court of competent jurisdiction to be invalid, illegal, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions set forth herein shall remain in full force and effect and shall in
no way be affected, impaired or invalidated, and the parties hereto shall use
their best efforts to find and employ an alternative means to achieve the same
or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

         (f) The Company shall not enter into any agreement with respect to its
securities that is inconsistent with the rights granted to the holders of
Registrable Securities in this Exhibit C or otherwise conflicts with the
provisions hereof. The restrictions on the Company's rights to grant
registration rights under this paragraph shall terminate on the date all
Registrable Securities have been registered pursuant to a Registration Statement
that has been declared effective by the Commission.

         (g) This Exhibit C and the various Stock Purchase Agreements constitute
the entire agreement among the parties hereto with respect to the subject matter
hereof. There are no restrictions, promises, warranties or undertakings, other
than those set forth or referred to herein. This Exhibit C and such Stock
Purchase Agreements supersede all prior agreements and undertakings among the
parties hereto with respect to the subject matter hereof.

         (h) Subject to the requirements of Section 8 hereof, this Exhibit C
shall inure to the benefit of and be binding upon the successors and assigns of
each of the parties hereto.

         (i) All pronouns and any variations thereof refer to the masculine,
feminine or neuter, singular or plural, as the context may require.

         (j) The headings in this Exhibit C are for convenience of reference
only and shall not limit or otherwise affect the meaning thereof.

                                       13

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