ChangeInControl Executive Severance Agreement.docx

ChangeInControl Executive Severance Agreement.docx

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ChangeInControlExecutiveSeveranceAgreement

CHANGE-IN-CONTROLEXECUTIVESEVERANCEAGREEMENT

ThisChange-in-ControlExecutiveSeveranceAgreement（this"Agreement"）,dated

andeffectiveJuly1,2004,isbetweenAceCashExpress,Inc.,aTexas

corporation（the"Company"）,andJayB.Shipowitz（the"Executive"）.

StatementofPurpose

TheCompanydesires,foritscontinuedsuccess,tohavethebenefitofservices

ofexperiencedmanagementpersonnelliketheExecutive.TheBoardofDirectors

oftheCompanythereforebelievesthatitisinthebestinterestoftheCompany

that,intheeventofanyprospectivechangeincontroloftheCompany,the

ExecutivebereasonablysecureinhisemploymentandpositionwiththeCompany,

sothattheExecutivecanexerciseindependentjudgmentastothebestinterest

oftheCompanyanditsshareholders,withoutdistractionbyanypersonal

uncertaintiesorrisksregardingtheExecutive'scontinuedemploymentwiththe

CompanycreatedbythepossibilityofachangeincontroloftheCompany.

Therefore,theCompanyandtheExecutiveenteredintoaChange-in-Control

ExecutiveSeveranceAgreementdatedAugust20,1998（the"PreviousSeverance

Agreement"）,toassureseverancebenefitstotheExecutiveinconnectionwith

certainterminationsofemploymentuponorafterachangeincontrolofthe

Company,andtheynowwishtoamendandsupersedethePreviousSeverance

Agreement（aspreviouslyamended）withthisAgreementtoeffectthesame

purpose.

Agreement

InconsiderationofthestatementsmadeintheStatementofPurposeandthe

mutualagreementssetforthbelow,theCompanyandtheExecutiveagreeas

follows:

1.DefinitionsandInterpretation.VarioustermsusedinthisAgreementare

definedinExhibitA;eachofthedefinedtermsusedinthisAgreement

beginswithacapitalletter.Variousinterpretativemattersforthis

AgreementarealsosetforthinExhibitA.ExhibitAisanintegralpart

ofthisAgreementandisincorporatedinthisAgreementbyreference.

2.TermofAgreement.ThisAgreementwillcontinueineffectuntilthe

earlierof:

（a）TheterminationorcessationoftheExecutive'semploymentwiththe

CompanyundertheEmploymentAgreement,ortheterminationofthe

EmploymentAgreement,beforeaChangeinControl.

（b）TheCompany'sperformanceofallofitsobligations,andthe

Executive'sreceiptofallofthepaymentsandbenefitstowhichhe

isentitled,underthisAgreementafteraSeverancePaymentEvent.

3.SeveranceBenefits.UponaSeverancePaymentEvent,inadditiontoany

Otherseveranceoremployment-terminationcompensationorbenefitstowhichtheExecutivemaybeentitledfromtheCompanyoranySubsidiaryunderthetermsofanyPlanofwhichtheExecutivewasaparticipantora

beneficiaryimmediatelybeforetheSeverancePaymentEvent,theCompany

shall:

（a）PaytheExecutiveincash,withinfiveBusinessDaysafterthe

SeverancePaymentEvent,allofhisBaseSalaryandallotherearned

butunpaidcashcompensationorentitlementsduetotheExecutive

through（andincluding）thedateoftheSeverancePaymentEvent,

includingunusedearnedandaccruedvacationpayandunreimbursed

reimbursablebusinessexpenses.

（b）MaketheSeverancePaymentincashwithinfiveBusinessDaysafter

theSeverancePaymentEvent.

（c）ProvideorarrangetoprovidetheExecutive（whetherornotunder

anyWelfareBenefitPlanthenmaintained）,attheCompany'ssole

expenseandfortheBenefitContinuationPeriod,WelfareBenefits

thataresubstantiallythesametheWelfareBenefitsprovidedtothe

Executive（andtheExecutive'sdependentsandbeneficiaries）

immediatelybeforetheSeverancePaymentEvent,exceptthatthe

WelfareBenefitstowhichtheExecutiveisentitledunderthis

subsection（c）willbesubjecttotheExecutive'scompliancewith

Section4andwillbereducedtotheextentthatcomparablewelfare

benefitsarereceivedbytheExecutivefromanemployerotherthan

theCompanyoranySubsidiaryduringtheBenefitContinuation

Period.（Thefactthatthecostoftheparticipationbythe

Executive,ortheExecutive'sdependentsorbeneficiaries,inany

WelfareBenefitPlanwaspaidindirectlybytheCompany,asa

reimbursementoracredittotheExecutive,beforetheSeverance

PaymentEventdoesnotmeanthatthecorrespondingWelfareBenefits

werenot"providedtotheExecutive"bytheCompanyforthepurpose

ofthissubsection（c）.）

Inaddition,eachStockAwardoutstandingimmediatelybeforetheSeverance

PaymentEventandnotyetexercisedorforfeited（asthecasemaybe）will

accelerateandbecomefullyvested,exercisable,ornonforfeitableupon

theSeverancePaymentEvent,asthoughallrequisitetimehadpassedto

vesttheStockAwardorcauseittobecomeexercisableornonforfeitable.

4.NondisclosureandNoncompetition.AsaninducementtotheCompanytoenter

intothisAgreement,theExecutiverepresentstoandcovenantswithorin

favoroftheCompanyasfollows:

（a）TheExecutivehasacquiredandwillacquireduringhisemployment

withtheCompanyknowledgeorawarenessofvariousTradeSecrets.

AlloftheTradeSecretsarevaluable,special,anduniqueassetsof

theCompany,andthedisclosureofanyofthem,ortheiruseinany

manner,otherthanonbehalfoftheCompanywouldcausesubstantial

injury,lossofprofits,andlossofgoodwilltotheCompany.

（b）DuringhisemploymentwiththeCompanyandatalltimesthereafter,

theExecutiveshallnot,directlyorindirectly,discloseor

disseminateanyTradeSecrettoanyotherPersonorlectureupon,

publisharticlesconcerning,orotherwiseuseoremployanyTrade

Secret,except（inanycase）totheextentrequiredinthecourseof

hisemploymentwiththeCompanyorbyapplicablelaw,rule,or

regulation（includinglegalprocess）.Inaddition,allTradeSecrets

andmaterialscontainingTradeSecretspreparedorcompiledbythe

Executiveorfurnishedormadeavailabletohimduringhis

employmentwiththeCompanyarethesoleandexclusivepropertyof

theCompany,andnoneofthoseTradeSecretsormaterialscontaining

TradeSecretsmayberetainedbytheExecutiveuponorfollowingany

terminationofhisemploymentwiththeCompany.

（c）IftheExecutive'semploymentwiththeCompanyterminates（other

thanbecauseoftheExecutive'sdeathorDisability）uponorbefore

theterminationofthisAgreement,theExecutiveshallnot,atany

timeduringthefirstyearafterthatterminationofemployment

anywhereintheRestrictedTerritory,directlyorindirectlyengage

inanyactivitywhich,oranyactivityforanyenterpriseorentity

amaterialpartofthebusinessofwhich,iscompetitivewiththe

businessconducted,orproposedduringhisemploymentwiththe

Companytobeconducted,bytheCompany.Theactivityprohibitedby

theprecedingsentenceincludesanykindofownership（otherthan

ownershipofsecuritiesofapubliclyheldentityofwhichthe

Executiveownslessthan1%ofaclassofoutstandingsecurities）in

orof,oractingasadirector,officer,agent,employee,or

consultantoforfor,anyenterpriseorentityreferredtointhe

precedingsentence.

（d）TheExecutiveacknowledgesandagreesthattherestrictionsinthis

Section4arereasonableandnotundulyburdensometohimunderthe

circumstances.

（e）TheExecutive'scompliancewiththisSection4andwiththe

post-employmentrestrictivecovenantsintheEmploymentAgreementisaconditiontotheCompany'sobligationtocontinuetoprovide

WelfareBenefitstotheExecutiveundersubsection（c）ofSection3

andtomakeoneormoreGross-UpPaymentstotheExecutiveunder

Section5;theCompanymayrefusetocontinueprovidingthose

WelfareBenefitsortomakealloranyGross-UpPaymentifthereis

anysuchnoncompliance,asreasonablydeterminedbytheBoard.For

thepurposeofthisAgreementonly,theCompanyshallhavethe

burdenofproofregardinganyquestionoftheExecutive'scompliance

ornoncompliancewiththisSection4ortomakealloranyGross-Up

Payment.

5.ExciseTaxes.

（a）IfalloranyportionoftheTotalSeveranceBenefits,determined

withoutregardtoanyadditionalpaymentsrequiredunderthis

Section5（a"Payment"）,wouldbesubjecttotheExciseTax,then

theExecutiveshallbeentitledtoreceiveanadditionalpayment

（"Gross-UpPayment"）inanamountsuchthatafterpaymentbythe

Executiveofalltaxes（includinganyinterestorpenaltiesimposed

withrespecttosuchtaxes）,includinganyincometaxes（andany

interestandpenaltiesimposedwith

respectthereto）andExciseTax,imposedupontheGross-UpPayment,

theExecutiveretainsanamountoftheGross-UpPaymentequaltothe

ExciseTaximposeduponthePayment,multipliedbythepercentage

setforthbelowcorrespondingtothePerShareChange-in-Control

Price:

PerShareChange-in-ControlPricePercentage

--------------------------------------------------

Lessthan$330%

$33tolessthan$3925%

$39tolessthan$4550%

$45tolessthan$5175%

$51ormore100%

（b）Subjecttosubsection（c）ofthisSection5,alldeterminations

requiredtobemadeunderthisSection5,includingwhetherandwhen

aGross-UpPaymentisrequired,theamountofanyGross-UpPayment,

andtheassumptionstobeusedinarrivingatsuchdetermination,

shallbemadebytheAccountingFirm,whichshallberetainedto

providedetailedsupportingcalculationstothePartieswithin15

BusinessDaysoftheAccountingFirm'sreceiptofwrittennotice

fromtheCompanyortheExecutivethattherehasbeenaPaymentor

suchearliertimeasisrequestedbytheCompany.Allfeesand

expensesoftheAccoun