Employment Separation Agreement

Exhibit 10.1

EMPLOYMENT SEPARATION AGREEMENT

     This Employment Separation Agreement (“Agreement”), dated as of June 30, 2005, is between Ace Cash Express, Inc., a Texas corporation (the “Company”), and Donald H. Neustadt, an individual resident of the State of Texas (“Neustadt”). The Company and Neustadt are hereinafter collectively referred to as the “Parties.”

     WHEREAS, Neustadt has been previously employed by the Company under an Employment Agreement dated as of July 1, 2004 (the “Employment Agreement”);

     WHEREAS, Neustadt is ceasing his employment with the Company under the Employment Agreement on the date of this Agreement (the “Separation Date”);

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

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

     1. Cessation of Employment. On the Separation Date, Neustadt resigns from, and ceases, his employment with the Company. The preceding sentence shall not, however, affect Neustadt’s continuing service as a director of the Company.

     2. General Releases and Covenants Not to Sue:

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     3. Revocation: Neustadt may revoke this Agreement by written notice to the Company within seven days after his execution hereof (the “Revocation Period”). Neustadt agrees that he will not receive the payments and benefits provided by this Agreement if he revokes this Agreement. Neustadt also acknowledges and agrees that if written notice of revocation of this Agreement has not been received by the Company before the expiration of the

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Revocation Period, he will have forever waived his right to revoke this Agreement, and this Agreement shall thereupon and thereafter be enforceable.

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

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

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

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

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

     9. No Effect on Other Agreements. This Agreement does not affect or supersede (a) the General Release and Covenant Not to Sue between the Parties dated as of June 30, 2004, which shall continue to be effective, or (b) any of the Parties’ respective post-employment covenants or obligations expressed or referred to in the Employment Agreement, which shall continue to be effective.

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

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

[Signature Page Follows]

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EXECUTED in Irving, Texas, this 30th day of June, 2005.

EXECUTED in Irving, Texas, this 30th day of June, 2005.