Document:

exv10w18

 

Exhibit
10.18

 

 

 

EMPLOYMENT AGREEMENT

among

CARDTRONICS, LP,

CARDTRONICS, INC.

and

DREW SOINSKI

July 12, 2005

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 1

DEFINITIONS; CONSTRUCTION
	 	 

	 	 	 	 	 
	 	 	 	 
	 	1.1	 	 	Definitions
	 	 	1	 
	 	1.2	 	 	Construction
	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 2

EMPLOYMENT AND DUTIES
	 	 

	 	 	 	 	 
	 	 	 	 
	 	2.1	 	 	Employment; Effective Date
	 	 	1	 
	 	2.2	 	 	Position
	 	 	1	 
	 	2.3	 	 	Duties and Services
	 	 	2	 
	 	2.4	 	 	Duty of Loyalty
	 	 	2	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 3

EMPLOYMENT TERM, TERMINATION AND RELATED MATTERS
	 	 

	 	 	 	 	 
	 	 	 	 
	 	3.1	 	 	Employment Term
	 	 	2	 
	 	3.2	 	 	Termination.
	 	 	2	 
	 	3.3	 	 	Effect of Termination
	 	 	3	 
	 	3.4	 	 	Miscellaneous Terms Relating to Termination.
	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 4

COMPENSATION, BONUSES, BENEFITS AND STOCK PURCHASE
	 	 

	 	 	 	 	 
	 	 	 	 
	 	4.1	 	 	Base Salary
	 	 	5	 
	 	4.2	 	 	Bonuses
	 	 	5	 
	 	4.3	 	 	Benefits.
	 	 	5	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 5

PROTECTION OF INFORMATION
	 	 

	 	 	 	 	 
	 	 	 	 
	 	5.1	 	 	Disclosure to and Property of the Company
	 	 	6	 
	 	5.2	 	 	Disclosure to the Employee
	 	 	6	 
	 	5.3	 	 	No Unauthorized Use or Disclosure
	 	 	7	 
	 	5.4	 	 	Ownership by Company
	 	 	7	 
	 	5.5	 	 	Assistance by the Employee
	 	 	8	 
	 	5.6	 	 	Remedies
	 	 	8	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 6

STATEMENTS CONCERNING THE COMPANY AND THE EMPLOYEE
	 	 

	 	 	 	 	 
	 	 	 	 
	 	6.1	 	 	In General
	 	 	8	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 7

NON-COMPETITION AFTER TERMINATION
	 	 

	 	 	 	 	 
	 	 	 	 
	 	7.1	 	 	In General
	 	 	9	 

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Employment Agreement

Drew Soinski

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	 	 	 	 	ARTICLE 8

MISCELLANEOUS
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	8.1	 	 	Notices
	 	 	10	 
	 	8.2	 	 	Applicable Law
	 	 	11	 
	 	8.3	 	 	No Waiver
	 	 	11	 
	 	8.4	 	 	Severability
	 	 	11	 
	 	8.5	 	 	Counterparts
	 	 	11	 
	 	8.6	 	 	Withholding of Taxes and Other Employee Deductions
	 	 	11	 
	 	8.7	 	 	Headings
	 	 	11	 
	 	8.8	 	 	Gender and Plurals
	 	 	11	 
	 	8.9	 	 	Assignment
	 	 	12	 
	 	8.10	 	 	Amendment; Entire Agreement
	 	 	12	 
	 	8.11	 	 	Arbitration
	 	 	12	 
	 	8.12	 	 	Employee’s Representation
	 	 	12	 
	 	8.13	 	 	Other Matters
	 	 	12	 
	 	8.14	 	 	Indemnification
	 	 	12	 

Exhibits:

	 	 	 
	A -

	 	Defined Terms
	B -

	 	Form of Release Agreement

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Employment Agreement

Drew Soinski

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EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT (this “Agreement”) is entered into by and among Cardtronics, LP, a
Delaware limited partnership (the “Company”), Cardtronics, Inc., a Delaware corporation
(“Cardtronics, Inc.”), and Drew Soinski, of 106 North Wilton Place, Los Angeles, California 90004
(the “Employee”), as of July 12, 2005. Cardtronics, Inc. joins in the execution of this Agreement
for the sole purpose of evidencing its agreement to the provisions set forth in Sections 4.3(d),
6.1 and 8.14.

     In consideration of the employment by the Company, and of the compensation and other
remuneration to be paid by the Company to the Employee for such employment, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the
Employee, the Company and the Employee agree as follows:

ARTICLE 1

DEFINITIONS; CONSTRUCTION

     1.1 Definitions. In addition to terms defined in the body of this Agreement, capitalized terms
used herein shall have the meanings given to them in Exhibit A.

     1.2 Construction. All article, section, subsection and exhibit references used in this Agreement
are to this Agreement unless otherwise specified. Exhibits attached to this Agreement constitute a
part of this Agreement and are incorporated herein. Unless the context of this Agreement clearly
requires otherwise, (a) the singular shall include the plural and the plural shall include the
singular wherever and as often as may be appropriate, (b) the words “includes” or “including” shall
mean “including without limitation,” and (c) the words “hereof,” “herein,” “hereunder” and similar
terms in this Agreement shall refer to this Agreement as a whole and not any particular section or
article in which such words appear.

ARTICLE 2

EMPLOYMENT AND DUTIES

     2.1 Employment; Effective Date. Subject to the terms of this Agreement, the Company agrees to
employ the Employee, and the Employee agrees to be employed by the Company, beginning as of August
1, 2005 (the “Effective Date”) and continuing until the last day of the Employment Term.

     2.2 Position. During the Employment Term, the Employee shall serve as the Company’s Chief
Marketing Officer and Executive Vice President Sales and Marketing. The Employee shall report
directly to the Chief Executive Officer of the Company and of Cardtronics, Inc. As the Chief
Marketing Officer and Executive Vice President Sales and Marketing, the Employee will responsible
for Cardtronics’ sales and revenue, organic growth initiatives, and developing strategies to
increase ATM transactions and functionalities. Employees reporting directly to the Chief Marketing
Officer and Executive Vice President Sales and Marketing will be the Executive Vice President,
National Sales, Vice President, Marketing, and a senior level officer (executive or senior vice
president) to head a “Business Development” section, to be created in the very near future.
Additionally, the Chief Marketing Officer and

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Executive Vice President Sales and Marketing will work closely with the Executive Vice President,
Financial Institutions, as a resource to help with bank branding and outsourcing opportunities.

     2.3 Duties and Services. The Employee shall perform diligently and to the best of his abilities
the duties and services appertaining to the Employee’s position as provided in Section 2.2, as well
as such additional duties and services appropriate to such position that the Board may determine
from time to time. Employee shall work at the Company’s principal offices in Houston. Additionally,
to effectively carry out his duties, Employee shall be required to travel on a regular to extensive
basis; with significant international travel. The Employee’s employment shall also be subject to
the policies maintained and established by the Board, as the same may be amended from time to time.
In furtherance of the foregoing, the Employee shall devote his full business time, energy and
efforts to the business and affairs of the Company and its Affiliates and shall not engage,
directly or indirectly, in any other business or businesses, whether or not similar to that of the
Company. The foregoing notwithstanding, the parties recognize that the Employee may engage in
passive personal investments and other non-competitive business activities that do not conflict
with the business and affairs of the Company or its Affiliates or interfere with the Employee’s
performance of his duties hereunder.

     2.4 Duty of Loyalty. The Employee acknowledges and agrees that the Employee owes a fiduciary duty
of loyalty, fidelity and allegiance to act at all times in the best interests of the Company and
its Affiliates and to do no act that would injure the business, interests or reputation of the
Company or any of its Affiliates. In keeping with these duties, the Employee shall make full
disclosure to the Board of all business opportunities pertaining to the Company’s business and
shall not appropriate for the Employee’s own benefit any such business opportunities.

ARTICLE 3

EMPLOYMENT TERM, TERMINATION AND RELATED MATTERS

     3.1 Employment Term. The term of this Agreement shall commence on the Effective Date and end on
the third anniversary of the Effective Date (the “Stated Term”) unless earlier terminated in
accordance with this Agreement (the Employee’s actual period of employment, whether extending
through the Stated Term or terminated earlier in accordance with this Agreement, is referred to
herein as the “Employment Term”).

     3.2 Termination. Notwithstanding the provisions of Section 3.1, the Employee’s employment shall
terminate prior to the expiration of the Stated Term as follows:

	 	(a)	 	automatically, upon the Employee’s death or voluntary resignation;
	 
	 	(b)	 	by the Company, upon notice to the Employee:

	 	(i)	 	upon the Employee becoming incapacitated by accident, sickness
or other circumstance that renders him Totally Disabled;

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	 	(ii)	 	upon the occurrence of any conduct or event constituting Cause,
but only after (A) an act or omission occurs which may constitute Cause, (B)
the Company notifies the Employee (the “For Cause Notice”) that the Company
intends to terminate his employment for Cause (and the acts or omissions which
allegedly constitute Cause must be described by the Company in reasonable
detail in the For Cause Notice); and (C) in the case of an act or omission
described in clauses (a), (c), (d) or (f) of the definition of the term Cause
set forth in Exhibit A, within 10 days after receiving such notice from the
Company, the Employee fails to cure the circumstances which gave rise to a
potential termination for Cause or otherwise prevent the event which
constituted grounds for Cause before the occurrence of such event; or
	 
	 	(iii)	 	for any reason other than (A) the expiration of the Stated
Term or (B) a reason described in Section 3.2(a), 3.2(b)(i) or 3.2(b)(ii)
(termination by the Company under this clause (iii) being referred to as a
“Without Cause Termination”).

     Termination under Section 3.2(b) is referred to elsewhere in this Agreement as a “Good Reason
Termination.”

     3.3 Effect of Termination

          (a) If the Employee’s employment under this Agreement terminates at the expiration of the
Stated Term or for any reason described in Section 3.2(a), 3.2(b)(i) or 3.2(b)(ii), all
compensation, bonuses and benefits to the Employee not yet accrued hereunder shall terminate
contemporaneously with the expiration of the Employment Term, but the Employee will be entitled to
(i) payment of all accrued and unpaid Base Salary to the date of termination, (ii) reimbursement
for all incurred but unreimbursed expenses for which the Employee is entitled to reimbursement in
accordance with the Company’s written policies, (iii) benefits to which the Employee is entitled
under the terms of any applicable benefit plan or program, and (iv) in the case of termination of
employment for any reason other than Cause as described in Section 3.2(b)(ii), payment of any
unpaid bonus for the fiscal year ending prior to the date of such termination and a pro rata bonus
for the fiscal year in which such termination occurs.

          (b) If the Employee’s employment terminates because of a Without Cause Termination by the
Company or a Good Reason Termination by the Employee, subject to delivery (without revocation) of
the release described in Section 3.4(c) and subject to the severance mitigation provisions of
Section 3.4(a), the Employee (or his estate, as applicable) shall be entitled to receive all
benefits described in clauses (i) through (iv) of Section 3.3(b) and severance pay equal to the
Base Salary and the benefits described in Section 4.3(a) for 12 months (the “Severance Period").
All severance payments due under this Section 3.3(b) shall become due and payable at such times and
in such installments as would have been payable if the Employee had not been so terminated. During
the portion, if any, of the Severance Period that the Employee elects to continue coverage for
himself and his eligible dependents under the Company’s group health plans under the Consolidated
Omnibus Budget Reconciliation Act of

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1985, as amended (COBRA), and/or Sections 601 through 608 of the Employee Retirement Income
Security Act of 1974, as amended, the Company shall promptly reimburse the Employee on a monthly
basis for the difference between the amount the Employee pays to effect and continue such coverage
and the employee contribution amount that active senior executive employees pay for the same or
similar coverage under the Company’s group health plans. In addition, during the Severance Period,
the Employee will be entitled to continued coverage under all other Company welfare benefit plans,
subject only to the requirement that he continue to pay the required premiums, if any, applicable
to active senior executive employees for the same or similar coverage.

     3.4 Miscellaneous Terms Relating to Termination.

          (a) If the Employee is entitled to severance pay under Section 3.3(b) and the Employee
subsequently accepts employment with or provides services to a third party for compensation on a
full-time basis (which shall mean 20 hours or more per week), then the Company’s obligation to pay
the Employee any severance pay thereafter shall be reduced by the gross earnings paid to or earned
by the Employee from such other employment or provision of services during the Severance Period.
The Employee agrees promptly to notify the Company if he accepts any employment or enters into any
service arrangement as described above that provides the Employee with compensation.

          (b) Notwithstanding anything to the contrary in this Agreement, the Company may set off any
amounts of money owed by the Employee to the Company (arising under this Agreement or otherwise)
against any payments owed by the Company to the Employee (arising under this Agreement or
otherwise).

          (c) In light of the difficulties in estimating the damages for a termination of this Agreement
before the expiration of the Stated Term, the Company and the Employee hereby agree that the
severance payments, if any, to be received by the Employee pursuant to Section 3.3(b) shall be
received by the Employee as liquidated damages, and the Employee shall not have any right to any
other payment or damages except for such liquidated damages. As a condition to receiving any
severance payments owing under this Agreement, the Employee will enter into and deliver to the
Company a separate full release and waiver substantially in the form attached hereto as Exhibit B
(with such changes to such form as the Company or the Employee may reasonably require to reflect
the circumstances relating to the termination of the Employee’s employment and/or changes in
applicable law). Notwithstanding anything to the contrary in this Agreement, severance payments
will not be payable by the Company unless and until the release has been executed by the Employee
and has not been revoked and is no longer subject to revocation by the Employee.

          (d) Termination of the Employee’s employment with the Company (whether because of the
expiration of the Stated Term or for any other reason) shall not affect the continuing
applicability of the terms set forth in Articles 5, 6, 7 and 8, all of which shall continue in full
force and effect during and after the Employee’s employment hereunder.

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ARTICLE 4

COMPENSATION, BONUSES, BENEFITS AND STOCK PURCHASE

     4.1 Base Salary. During the Employment Term, the Company shall pay the Employee a gross base
salary of $250,000 (as such may be adjusted from time to time pursuant to the following sentence)
(the “Base Salary”), which the Company shall pay to the Employee in bi-weekly installments in
accordance with the Company’s regular payroll practice for management employees. The Base Salary
is expected to increase by 5% of the prior year’s Base Salary on each anniversary of the Effective
Date; provided, whether an increase actually occurs is subject to the sole discretion of the Board.
Thus, no obligation to increase Base Salary shall exist by reason of the foregoing expectation.

     4.2 Bonuses. In addition to the Base Salary due under Section 4.1, the Employee may be eligible
for a bonus (a “Bonus”) in each fiscal year during the Employment Term in accordance with and
pursuant to the Company’s then-current bonus plan (“Bonus Plan”). The Bonus Plan will be
implemented and administered by the Compensation Committee of the Board, and any bonuses payable
thereunder shall be based upon a number of factors determined and set by the Compensation Committee
in its sole discretion. Such factors may include, but not be limited to, the achievement by the
Company of certain performance objectives, and the operation of the Company within the budgets
approved by the Board. Subject to achieving the performance standards set by the Compensation
Committee, the targeted Bonus payable to the Employee will be 50% of the Employee’s annual Base
Salary, but the ultimate Bonus amount paid to the Employee, if any, will be determined at the sole
discretion of the Compensation Committee; provided, however with respect only to that portion of
the Employment Term that ends on December 31, 2005, so long as Employee has not been terminated for
cause the Company will pay Employee a bonus equal to 50% of his Base Salary.

If the Employment Term during any fiscal year is less than the Company’s full fiscal year, the
Bonus, if any, attributable to any fiscal year shall be prorated for the actual number of days of
the Employment Term that elapses during such fiscal year.

     4.3 Benefits.

          (a) During the Employment Term, except as expressly provided otherwise in this Agreement (e.g.
severance, vacation, bonuses and equity incentive compensation), the Employee shall be eligible for
participation in and to receive all benefits under welfare benefit plans, practices, policies and
programs of the Company, including the Company’s medical, dental, disability, and 401(k) plans as
may be in effect from time to time for other similarly situated employees of the Company.

          (b) The Employee shall be entitled to four weeks paid vacation for each 12-month period during
the Employment Term and sick leave in accordance with the Company’s prevailing policy for its
executives.

          (c) The Company shall reimburse the Employee for all reasonable and proper travel and
out-of-pocket expenses incurred by the Employee in connection with the performance

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of his duties, all in accordance with the Company’s written policies as provided to the
Employee from time to time.

          (d) Effective as of August 1, 2005, Cardtronics, Inc. shall grant to the Employee an option
(the “Initial Option”) to purchase 50,000 shares of Common Stock of Cardtronics, Inc. pursuant to a
stock incentive plan maintained by Cardtronics, Inc. The Initial Option shall be evidenced by a
Nonstatutory Stock Option Agreement executed contemporaneously herewith, and such agreement and the
plan referenced therein shall govern the terms and conditions of the Initial Option. The purchase
price for each share of Common Stock of Cardtronics, Inc. subject to the Initial Option shall be
equal to $83.84 per share.

     4.4 Sign-On Bonus in lieu of Relocation Expenses

          (a) To compensate Employee for any and all expenses incurred commuting to and living in
Houston prior to the permanent move as well as any and all expenses incurred in the family’s
permanent move to Houston (“Relocation Expenses”). Within ten (10) days of reporting to work,
Company will pay a $50,000 relocation bonus. In return, Employee will be solely responsible for any
and all Relocation Expenses. In recognition of this benefit, Employee agrees that should at
anytime prior to September 1, 2007, Employee voluntarily terminates employment with Company,
Employee will pay Company a sum equal to $2,083.00 multiplied by the number of partial or whole
months between the date of Employee’s voluntary termination and September 1, 2007.

ARTICLE 5

PROTECTION OF INFORMATION

     5.1 Disclosure to and Property of the Company. All information, designs, ideas, concepts,
improvements, product developments, discoveries and inventions, whether patentable or not, that are
conceived, made, developed or acquired by the Employee, individually or in conjunction with others,
during the Employment Term (whether during business hours or otherwise and whether on the Company’s
premises or otherwise) that relate to the Company’s or any of its Affiliates’ business, products or
services (including, without limitation, all such information relating to corporate opportunities,
research, financial and sales data, pricing terms, evaluations, opinions, interpretations,
acquisitions prospects, the identity of customers or their requirements, the identity of key
contacts within the customer’s organizations or within the organization of acquisition prospects,
or marketing and merchandising techniques, prospective names and marks) (collectively,
"Confidential Information”) shall be disclosed to the Company and are and shall be the sole and
exclusive property of the Company or its Affiliates. Moreover, all documents, videotapes, written
presentations, brochures, drawings, memoranda, notes, records, files, correspondence, manuals,
models, specifications, computer programs, E-mail, voice mail, electronic databases, maps,
drawings, architectural renditions, models and all other writings or materials of any type
embodying any of such information, ideas, concepts, improvements, discoveries, inventions and other
similar forms of expression (collectively, “Work Product”) are and shall be the sole and exclusive
property of the Company or its Affiliates. Upon termination of the Employee’s employment by the
Company, for any reason, the Employee promptly shall deliver such Confidential Information and Work
Product, and all copies thereof, to the Company.

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     5.2 Disclosure to the Employee. The Company shall disclose to the Employee, or place the Employee
in a position to have access to or develop, Confidential Information and Work Product of the
Company or its Affiliates; and/or shall entrust the Employee with business opportunities of the
Company or its Affiliates; and/or shall place the Employee in a position to develop business good
will on behalf of the Company or its Affiliates. The Employee agrees to preserve and protect the
confidentiality of all Confidential Information or Work Product of the Company or its Affiliates.

     5.3 No Unauthorized Use or Disclosure. The Employee agrees that he will not, at any time during or
after the Employee’s employment by the Company, make any unauthorized disclosure of, and will
prevent the removal from the Company premises of, Confidential Information or Work Product of the
Company or its Affiliates, or make any use thereof, except in the carrying out of the Employee’s
responsibilities hereunder. The Employee shall use commercially reasonable efforts to cause all
persons or entities to whom any Confidential Information shall be disclosed by him hereunder to
observe the terms and conditions set forth herein as though each such person or entity was bound
hereby. The Employee shall have no obligation hereunder to keep confidential any Confidential
Information if and to the extent disclosure thereof is specifically required by law; provided,
however, that in the event disclosure is required by applicable law, the Employee shall provide the
Company with prompt notice of such requirement prior to making any such disclosure, so that the
Company may seek an appropriate protective order. At the request of the Company, the Employee
agrees to deliver to the Company, at any time during the Employment Term, or thereafter, all
Confidential Information that he may possess or control. The Employee agrees that all Confidential
Information of the Company (whether now or hereafter existing) conceived, discovered or made by him
during the Employment Term exclusively belongs to the Company (and not to the Employee), and the
Employee will promptly disclose such Confidential Information to the Company and perform all
actions reasonably requested by the Company to establish and confirm such exclusive ownership.
Affiliates of the Company shall be third party beneficiaries of the Employee’s obligations under
this Section. As a result of the Employee’s employment by the Company, the Employee may also from
time to time have access to, or knowledge of, Confidential Information or Work Product of third
parties, such as customers, suppliers, partners, joint venturers, and the like, of the Company and
its Affiliates. The Employee also agrees to preserve and protect the confidentiality of such third
party Confidential Information and Work Product to the same extent, and on the same basis, as the
Company’s Confidential Information and Work Product.

     5.4 Ownership by Company. If, during the Employment Term the Employee creates any work of
authorship fixed in any tangible medium of expression that is the subject matter of copyright (such
as videotapes, written presentations, or acquisitions, computer programs, E-mail, voice mail,
electronic databases, drawings, maps, architectural renditions, models, manuals, brochures, or the
like) relating to the Company’s business, products, or services, whether such work is created
solely by the Employee or jointly with others (whether during business hours or otherwise and
whether on the Company’s premises or otherwise), the Company shall be deemed the author of such
work if the work is prepared by the Employee in the scope of the Employee’s employment; or, if the
work is not prepared by the Employee within the scope of the Employee’s employment but is specially
ordered by the Company as a contribution to a collective work, as a

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part of a motion picture or other audiovisual work, as a translation, as a supplementary work, as a
compilation, or as an instructional text, then the work shall be considered to be work made for
hire and the Company shall be the author of the work. If such work is neither prepared by the
Employee within the scope of the Employee’s employment nor a work specially ordered that is deemed
to be a work made for hire, then the Employee hereby agrees to assign, and by these presents does
assign, to the Company all of the Employee’s worldwide right, title, and interest in and to such
work and all rights of copyright therein.

     5.5 Assistance by the Employee. During the Employment Term and thereafter, the Employee, upon
reasonable notice and in exchange for reimbursement of any expenses reasonably incurred, shall
assist the Company and its nominee, at any time, in the protection of the Company’s or its
Affiliates’ worldwide right, title and interest in and to Work Product and the execution of all
formal assignment documents requested by the Company or its nominee and the execution of all lawful
oaths and applications for patents and registration of copyright in the United States and foreign
countries.

     5.6 Remedies. The Employee acknowledges that money damages would not be sufficient remedy for any
breach of this Article 5 by the Employee, and the Company or its Affiliates shall be entitled to
enforce the provisions of this Article 5 by terminating payments then owing to the Employee under
this Agreement or otherwise and to specific performance and injunctive relief as remedies for such
breach or any threatened breach. Such remedies shall not be deemed the exclusive remedies for a
breach of this Article, but shall be in addition to all remedies available at law or in equity,
including the recovery of damages from the Employee and his agents.

ARTICLE 6

STATEMENTS CONCERNING THE COMPANY AND THE EMPLOYEE

     6.1 In General. The Employee shall refrain, both during the Employment Term and thereafter, from
publishing any oral or written statements about the Company, any of its Affiliates or any of such
entities’ officers, employees and consultants, agents or representatives that are (a) slanderous,
libelous or defamatory, (b) that disclose Confidential Information about the Company, any of its
Affiliates or any of such entities’ business affairs, officers, employees and consultants, agents
or representatives, (c) that constitute an intrusion into the seclusion or private lives of any
officers, employees and consultants, agents or representatives of the Company or any of its
Affiliates, (d) that give rise to unreasonable publicity about the private lives of any officers,
employees and consultants, agents or representatives of the Company or any of its Affiliates, (e)
that place the Company, any of its Affiliates, or any of such entities’ officers, employees and
consultants, agents or representatives in a false light before the public or (f) that constitute a
misappropriation of the name or likeness of the Company, any of its Affiliates or any of such
entities’ officers, employees and consultants, agents or representatives; provided, however, that
nothing in this Agreement shall apply to or restrict in any way the communication of information by
the Employee to any state or federal law enforcement agency or require notice to the Company
thereof, and the Employee will not be in breach of the covenant contained above solely by reason of
his testimony which is compelled by process of law. The Company and Cardtronics, Inc. shall
refrain, both during the Employment Term and thereafter, from publishing any oral or written
statements regarding the Employee that are (a) slanderous,

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libelous or defamatory, (b) that constitute an intrusion into the seclusion or private lives of the
Employee or any member of his family, (c) that give rise to unreasonable publicity about the
private lives of the Employee or his family, or (d) that place the Employee or his family in a
false light before the public; provided, however, that nothing in this Agreement shall apply to or
restrict in any way the communication of information by the Company or Cardtronics, Inc. to any
state or federal law enforcement agency or require notice to the Employee thereof, and the Company
and Cardtronics, Inc. will not be in breach of the covenant contained above solely by reason of
their testimony which is compelled by process of law. A violation or threatened violation of this
prohibition may be enjoined by the courts. The rights afforded the Company and its Affiliates and
the Employee under this provision are in addition to any and all rights and remedies otherwise
afforded by law.

ARTICLE 7

NON-COMPETITION AFTER TERMINATION

     7.1 In General. As part of the consideration for the compensation and benefits to be paid to the
Employee hereunder; to protect the trade secrets and Confidential Information of the Company or its
Affiliates that will in the future be disclosed or entrusted to the Employee, the business good
will of the Company or its Affiliates that will in the future be developed in the Employee, or the
business opportunities that will in the future be disclosed or entrusted to the Employee by the
Company or its Affiliates; and as an additional incentive for the Company to enter into this
Agreement, the Company and the Employee agree to the provisions of this Section 7.1. The Employee
agrees that, from the date hereof until 24 months after the end of the Employment Term (the
"Non-Compete Period”), the Employee shall not:

          (a) directly or indirectly participate in the ownership, management, operation or control of,
or be connected as an officer, employee, partner, director, contractor or otherwise with, or have
any financial interest in or aid or assist anyone else in the conduct of, the segment or division
of any business in any of the business territories in which the Company is presently or from
time-to-time conducting business that either conducts a business similar to that conducted by the
Company or its Affiliates or provides or sells a service or product that is the same, substantially
similar to or otherwise competitive with the products and services provided or sold by the Company
or its Affiliates (a “Competitive Operation”); provided, however, that this provision shall not
preclude the Employee from owning less than 2% of the equity securities of any publicly held
Competitive Operation so long as the Employee does not serve as an employee, officer, director or
consultant to such business;

          (b) directly or indirectly, either as principal, agent, independent contractor, consultant,
director, officer, employee, employer, advisor, stockholder, partner or in any other individual or
representative capacity whatsoever, either for his own benefit or for the benefit of any other
person or entity either (i) hire, contract or solicit, or attempt any of the foregoing, with
respect to hiring any employee of the Company or its Affiliates, or (ii) induce or otherwise
counsel, advise or encourage any employee of the Company or its Affiliates to leave the employment
of the Company or its Affiliates;

          (c) directly or indirectly, either as principal, agent, independent contractor, consultant,
director, officer, employee, employer, advisor, stockholder, partner or in any other

Cardtronics, LP

Employment Agreement

Drew Soinski
9

 

 

individual or representative capacity whatsoever, either for his own benefit or for the
benefit of any other person or entity call upon, solicit, divert or take away, any customer or
vendor of the Company or its Affiliates with whom the Employee dealt, directly or indirectly,
during his engagement with the Company or its Affiliates, in connection with a Competitive
Operation;

          (d) call upon any prospective acquisition candidate on the Employee’s own behalf or on behalf
of any Competitive Operation, which candidate is a Competitive Operation or which candidate was, to
the Employee’s knowledge after due inquiry, either called upon by the Company or for which the
Company or any of its Affiliates made an acquisition analysis, for the purpose of acquiring such
entity; or

          (e) directly or indirectly participate in the ownership, management, operation or control of
more than 2% of the ownership interest in the segment or division of any business which is a
customer, vendor, supplier or lessor of goods and services to the Company without the written
consent of the Board which, after the Employment Term, shall not be unreasonably withheld. This
restriction shall include any Family Member of the Employee. Further, the Employee shall, on an
annual basis or from time to time as required by the Company, disclose which entities, if any, in
which they or any Family Member directly or indirectly participate in the ownership, management,
operation or control of, or are connected as an officer, employee, partner, director or otherwise
with, or have any financial interest in or aid or assist anyone else in the conduct of any business
that is a customer, vendor, supplier or lessor of goods, services or real property to the Company.

     It is agreed by the parties that the foregoing covenants in this Article 7 impose a reasonable
restraint on the Employee.

     The covenants in this Article 7 are severable and separate, and the unenforceability of any
specific covenant shall not affect the provisions of any other covenant. Moreover, in the event
any court of competent jurisdiction shall determine that the scope, time or territorial
restrictions set forth are unreasonable, then it is the intention of the parties that such
restrictions be enforced to the fullest extent that the court deems reasonable, and the Agreement
shall thereby be reformed.

ARTICLE 8

MISCELLANEOUS

     8.1 Notices. For purposes of this Agreement, notices and all other communications provided for
herein shall be in writing and shall be deemed to have been duly given when personally delivered or
when mailed by United States registered or certified mail, return receipt requested, postage
prepaid, addressed as follows:

			
	     If to the Company to:	 	Cardtronics, LP

3110 Hayes, Suite 300

Houston, Texas 77082

Attention: Chief Executive Officer

Cardtronics, LP

Employment Agreement

Drew Soinski
10

 

 

			
	     If to the Employee to:	 	Drew Soinski

106 North Wilton Place

Los Angeles, CA 90004

or to such other address as either party may furnish to the other in writing in accordance
herewith, except that notices of changes of address shall be effective only upon receipt.

     8.2 Applicable Law. This Agreement is entered into under, and shall be governed for all purposes
by, the laws of the State of Texas.

     8.3 No Waiver. No failure by either party hereto at any time to give notice of any breach by the
other party of, or to require compliance with, any condition or provision of this Agreement shall
be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.

     8.4 Severability. To the extent permitted by applicable law, the Company and the Employee hereby
agree that any term or provision of this Agreement that renders such term or provision or any other
term or provision hereof invalid or unenforceable in any respect shall be modified to the extent
necessary to avoid rendering such term or provision invalid or unenforceable, and such modification
shall be accomplished in the manner that most nearly preserves the benefit of the Company and the
Employee’s bargain hereunder. If a court of competent jurisdiction determines that any term or
provision of this Agreement is invalid or unenforceable, then the invalidity or unenforceability of
that term or provision shall not affect the validity or enforceability of any other term or
provision of this Agreement, and all other terms or provisions shall remain in full force and
effect so long as the economic or legal substance of the transactions contemplated hereby is not
affected in a materially adverse manner with respect to either party.

     8.5 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall
be deemed to be an original, but all of which together will constitute one and the same Agreement.

     8.6 Withholding of Taxes and Other Employee Deductions. The Company may withhold from any benefits
and payments made pursuant to this Agreement all federal, state, city and other taxes as may be
required pursuant to any law or governmental regulation or ruling and all other normal employee
deductions made with respect to the Company’s employees generally.

     8.7 Headings. The section headings have been inserted for purposes of convenience and shall not be
used for interpretive purposes.

     8.8 Gender and Plurals. Wherever the context so requires, the masculine gender includes the
feminine or neuter, the singular number includes the plural and vice-versa, “or” has the inclusive
meaning identified with the phrase “and/or” and “including” has the inclusive meaning frequently
identified with the phrase “but not limited to.”

Cardtronics, LP

Employment Agreement

Drew Soinski
11

 

 

     8.9 Assignment. This Agreement shall be binding upon and inure to the benefit of the Company and
any successor of the Company, by merger or otherwise. Except as provided in the preceding sentence
and except that the Company may assign its rights hereunder to an Affiliate, this Agreement and the
rights and obligations of the parties hereunder are personal and neither this Agreement nor any
right, benefit or obligation of either party hereto shall be subject to voluntary or involuntary
assignment, alienation or transfer, whether by operation of law or otherwise, without the prior
written consent of the other party.

     8.10 Amendment; Entire Agreement. This Agreement may not be changed orally but only by an
agreement in writing agreed to and signed by both parties. This Agreement constitutes the entire
agreement of the parties with regard to the subject matter hereof, contains all the covenants,
promises, representations, warranties and agreements between the parties with respect to employment
of the Employee by the Company and supersedes any and all prior agreements, including employment
agreements, bonus plans, benefit plans and other compensation or benefit plans and agreements.

     8.11 Arbitration. In the event of any dispute, difference or question arising between the Company
and the Employee in connection with this Agreement or the discussion, negotiation, drafting or
making hereof, or any clause or the construction thereof, or the rights, duties or liabilities of
either party, then and in every such case, unless the parties agree on the appointment of a single
arbitrator, the matter of difference shall be referred to one arbitrator appointed by the American
Arbitration Association, and the arbitration of such dispute shall be administered in accordance
with the employment rules of the American Arbitration Association. The arbitrator shall determine
the place or places in Harris County, Texas, where meetings are to be held. The arbitrator must
base his or her decision, with respect to the difference before him or her, on the contents of this
Agreement and the relevant facts, and the decision of the arbitrator shall be binding on both
parties. Nothing herein is or shall be deemed to preclude the Company’s resort to the injunctive
relief prescribed in this Agreement, including any injunctive relief implemented by the arbitrators
pursuant to this Section 8.11.

     8.12 Employee’s Representation. The Employee hereby warrants and represents to Company that the
Employee has carefully reviewed the Agreement and has consulted with such advisors as the Employee
considers appropriate in connection with this Agreement, and is not subject to any covenants,
agreements or restrictions, including without limitation any covenants, agreements or restrictions
arising out of the Employee’s prior employment that would be breached or violated by the Employee’s
execution of this Agreement or by the Employee’s performance of his duties hereunder.

     8.13 Other Matters. Employee agrees and hereby acknowledges that the obligations owed to the
Employee under this Agreement are solely those of the Company, and, where expressly noted,
Cardtronics, Inc. and that none of the Company’s stockholders, directors, officers, other
Affiliates, representatives, agents or lenders will have any obligations or liabilities in respect
of this Agreement and the subject matter hereof.

     8.14 Indemnification. The Company agrees to indemnify the Employee to the extent set forth in the
Company’s and Cardtronics, Inc.’s partnership agreement or Certificate of Incorporation and
By-Laws, as applicable, in effect as of the date hereof.

Cardtronics, LP

Employment Agreement

Drew Soinski
12

 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set
forth above, to be effective as of the Effective Date.

	 	 	 	 	 
	 	THE COMPANY:

CARDTRONICS, LP

 	 
	 	By:  	/s/ Jack M. Antonini 	 
	 	 	Jack M. Antonini 	 
	 	 	President and Chief Executive Officer 	 
	 
	 	EMPLOYEE:
 

/s/ Drew Soinski

	 	Drew Soinski

 	 
	 	 	 
	 	 	 
	 	 	 
	 
	 	Solely for purposes of Sections 4.3(d), 6.1 and

8.14:

CARDTRONICS, INC.

 	 
	 	By:  	Jack M. Antonini 	 
	 	 	Jack M. Antonini 	 
	 	 	President and Chief Executive Officer 	 
	 

Cardtronics, LP

Employment Agreement

Drew Soinski

Signature Page

 

 

EXHIBIT A

DEFINED TERMS

     As used in the Agreement, the following terms shall have the respective meanings set forth
below or set forth in the provision of the Agreement following such term.

     "Affiliate” means, with respect to any other person or entity, any other person or entity (a)
that is directly or indirectly controlled by the person or entity in question, (b) that directly or
indirectly controls the person or entity in question or (c) that directly or indirectly is under
common control with the person or entity in question. For purposes of the foregoing definition,
(i) a person or entity controls another entity if it or he directly or indirectly owns, or has the
right to vote, at least 20% of the beneficial interests in the entity or if through other
agreements (e.g., management agreement) has the right to control the policies of such entity; (ii)
indirect control includes control held through one or more tiers of subsidiary or intervening
entities (such as corporations, partnerships, trusts, or limited liability companies) and (iii)
“control” includes the ability, directly or indirectly, to direct the management or policies of
such entity, whether through the ownership of voting rights, pursuant to a contract, or otherwise.

     "Base Salary” shall have the meaning ascribed to such term in Section 4.1 of this Agreement.

     "Board” means the Board of Directors of Cardtronics, Inc., a Delaware corporation that
indirectly owns all of the partnership interests of the Company. Cardtronics, Inc. is the sole
managing partner of the general partner of the Company. In such capacity, the Board makes certain
decisions on behalf of Cardtronics, Inc., which acts on behalf of the general partner of the
Company.

     "Bonus” shall have the meaning ascribed to such term in Section 4.2 of this Agreement.

     “CapStreet Investors” has the meaning given such term in that First Amended and Restated
Investors Agreement dated February 10, 2005 among Cardtronics, Inc. and certain of its
stockholders.

     "Cause” shall exist if the Employee (a) has engaged in gross negligence or willful misconduct
in the performance of the duties required of him hereunder, (b) has been indicted with respect to a
felony offense, (c) has willfully refused to perform the duties and responsibilities required of
him hereunder, (d) has materially breached any Company policy or code of conduct established by the
Company of which he is aware or should have been aware, (e) has willfully engaged in conduct that
he knows or should know is materially injurious to the Company or any of its Affiliates or (f) has
materially breached any provision of this Agreement.

     "Change in Control” means:

     (a) prior to the date of an IPO, (i) any transaction or event pursuant to which the
CapStreet Investors and the TA Investors cease to collectively own 50% or more of the
outstanding and issued shares of or (ii) all or substantially all of the assets of

Cardtronics, LP

Employment Agreement

Drew Soinski

Exhibit A — Defined Terms

 

 

Cardtronics, Inc. are transferred to an entity that is not owned (in substantially the
same proportions) by the holders of equity securities of Cardtronics, Inc. immediately prior
to such transaction; and

     (b) from and after the date of an IPO, (i) a merger of Cardtronics, Inc. with another
entity, a consolidation involving Cardtronics, Inc., or the sale of all or substantially all
of the assets of Cardtronics, Inc. to another entity if, in any such case, (A) the holders
of equity securities of Cardtronics, Inc. immediately prior to such transaction or event do
not beneficially own immediately after such transaction or event equity securities of the
resulting entity entitled to 60% or more of the votes then eligible to be cast in the
election of directors generally (or comparable governing body) of the resulting entity in
substantially the same proportions that they owned the equity securities of Cardtronics,
Inc. immediately prior to such transaction or event or (B) the persons who were members of
the Board immediately prior to such transaction or event shall not constitute at least a
majority of the board of directors of the resulting entity immediately after such
transaction or event, (ii) the dissolution or liquidation of Cardtronics, Inc., (iii) when
any person or entity, including a “group” as contemplated by Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended (other than the CapStreet Investors or the TA
Investors) acquires or gains ownership or control (including, without limitation, power to
vote) of more than 50% of the combined voting power of the outstanding securities of, (A) if
Cardtronics, Inc. has not engaged in a merger or consolidation, Cardtronics, Inc. or (B) if
Cardtronics, Inc. has engaged in a merger or consolidation, the resulting entity or (iv) as
a result of or in connection with a contested election of directors, the persons who were
members of the Board immediately before such election shall cease to constitute a majority
of the Board. For purposes of this paragraph (b), (I) “resulting entity” in the context of
a transaction or event that is a merger, consolidation or sale of all or substantially all
assets shall mean the surviving entity (or acquiring entity in the case of an asset sale)
unless the surviving entity (or acquiring entity in the case of an asset sale) is a
subsidiary of another entity and the holders of common stock of Cardtronics, Inc. receive
capital stock of such other entity in such transaction or event, in which event the
resulting entity shall be such other entity and (II) subsequent to the consummation of a
merger or consolidation that does not constitute a Change in Control, the term “Cardtronics,
Inc.” shall refer to the resulting entity and the term “Board” shall refer to the board of
directors (or comparable governing body) of the resulting entity.

     Notwithstanding the foregoing, in no event shall an IPO constitute a Change in Control.

     "Company” shall have the meaning ascribed to such term in the preamble of this Agreement.

     "Compensation Committee” means a committee formed by the Board for the purpose of determining
compensation levels (including base salary, bonus and stock options) of key management and officers
of the Company; provided, however, that in the event the Board does not appoint such a committee,
the Board shall be considered the Compensation Committee for purposes of this Agreement.

Cardtronics, LP

Employment Agreement

Drew Soinski

Exhibit A — Defined Terms
Page 2

 

 

     "Competitive Operation” shall have the meaning ascribed to such term in Section 7.1(a) of this
Agreement.

     "Confidential Information” shall have the meaning ascribed to such term in Section 5.1 of this
Agreement.

     "Employee” shall have the meaning ascribed to such term in the preamble of this Agreement.

     "Employment Term” shall have the meaning ascribed to such term in Section 3.1 of the
Agreement.

     "Family Member” means any relative or spouse of such person or any relative of such spouse,
any one of whom has the same home as such person.

     "Good Reason Event” means any of the following events:

     (a) a Change in Control occurs;

     (b) without the Employee’s prior consent, the assignment to the Employee by the Company
of duties inconsistent with the Employee’s position as Executive Vice President -
International or any significant reduction or significant change in either position or job
function, except in connection with the termination of employment for Cause or in connection
with the termination of employment by reason of the Employee becoming Totally Disabled; or

     (c) a material breach of Article 4 of the Agreement by the Company or an Affiliate.

     "IPO” means the initial sale of any class of common stock of Cardtronics, Inc. pursuant to an
effective registration statement under the Securities Act (other than a registration statement on
Form S-8, Form S-4 or any successor forms).

     "Non-Compete Period” shall have the meaning ascribed to such term in Section 7.1 of this
Agreement.

     “TA Investors” has the meaning given such term in that First Amended and Restated Investors
Agreement dated February 10, 2005 among Cardtronics, Inc. and certain of its stockholders.

     "Totally Disabled” shall mean failure by the Employee, by reason of illness, incapacity or
other disability, to perform his duties or fulfill his obligations under this Agreement in the view
of the Company and as certified in writing by a competent medical physician chosen by the Company,
for a cumulative total of 180 days in any 12-month period.

     "Work Product” shall have the meaning ascribed to such term in Section 5.1 of this Agreement.

Cardtronics, LP

Employment Agreement

Drew Soinski

Exhibit A — Defined Terms
Page 3

 

 

EXHIBIT B

RELEASE AGREEMENT

     This Release Agreement (this “Agreement”) constitutes the release referred to in that certain
Employment Agreement (the “Employment Agreement”) dated as of July ___, 2005, by and among Drew
Soinski (“Employee”), Cardtronics, LP (the “Company”) and Cardtronics, Inc. (“Parent”).

     For good and valuable consideration, including the Company’s provision of certain payments and
benefits to Employee in accordance with Section 3.3(b) of the Employment Agreement and an increase
in the vested percentage of the Initial Option (as such term is defined in the Employment
Agreement), Employee hereby releases, discharges and forever acquits the Company, Parent, their
respective Affiliates (as such term is defined in the Employment Agreement) and the past, present
and future stockholders, members, partners, directors, managers, employees, agents, attorneys,
heirs, legal representatives, successors and assigns of the foregoing, in their personal and
representative capacities (collectively, the “Company Parties"), from liability for, and hereby
waives, any and all claims, damages, or causes of action of any kind related to Employee’s
employment with any Company Party, the termination of such employment, and any other acts or
omissions related to any matter on or prior to the date of this Agreement including without
limitation any alleged violation through the date of this Agreement of: (i) the Age Discrimination
in Employment Act of 1967, as amended; (ii) Title VII of the Civil Rights Act of 1964, as amended;
(iii) the Civil Rights Act of 1991; (iv) Section 1981 through 1988 of Title 42 of the United States
Code, as amended; (v) the Employee Retirement Income Security Act of 1974, as amended; (vi) the
Immigration Reform Control Act, as amended; (vii) the Americans with Disabilities Act of 1990, as
amended; (viii) the National Labor Relations Act, as amended; (ix) the Fair Labor Standards Act, as
amended; (x) the Occupational Safety and Health Act, as amended; (xi) the Family and Medical Leave
Act of 1993; (xii) any state anti-discrimination law; (xiii) any state wage and hour law; (xiv) any
other local, state or federal law, regulation or ordinance; (xv) any public policy, contract, tort,
or common law claim; (xvi) any allegation for costs, fees, or other expenses including attorneys’
fees incurred in these matters; (xvii) any and all rights, benefits or claims Employee may have
under any employment contract, incentive compensation plan or stock option plan with any Company
Party or to any ownership interest in any Company Party except as expressly provided in the
Employment Agreement, the Investors Agreement of Cardtronics, Inc. and any stock option or other
equity compensation agreement between Employee and Parent and (xviii) any claim for compensation or
benefits of any kind not expressly set forth in the Employment Agreement or any such stock option
or other equity compensation agreement (collectively, the “Released Claims"). In no event shall
the Released Claims include any claim which arises after the date of this Agreement or any claim to
vested benefits under an employee benefit plan . This Agreement is not intended to indicate that
any such claims exist or that, if they do exist, they are meritorious. Rather, Employee is simply
agreeing that, in exchange for the consideration recited in the first sentence of this paragraph,
any and all potential claims of this nature that Employee may have against the Company Parties,
regardless of whether they actually exist, are expressly settled, compromised and waived. By
signing this Agreement, Employee is bound by it. Anyone who succeeds to Employee’s rights and
responsibilities, such as heirs or the executor of

Cardtronics, LP

Employment Agreement

Drew Soinski

Exhibit B — Release Agreement

 

 

Employee’s estate, is also bound by this Agreement. This release also applies to any claims
brought by any person or agency or class action under which Employee may have a right or benefit.
THIS RELEASE INCLUDES MATTERS ATTRIBUTABLE TO THE SOLE OR PARTIAL NEGLIGENCE (WHETHER GROSS OR
SIMPLE) OR OTHER FAULT, INCLUDING STRICT LIABILITY, OF ANY OF THE COMPANY PARTIES.

     Employee agrees not to bring or join any lawsuit against any of the Company Parties in any
court relating to any of the Released Claims. Employee represents that Employee has not brought or
joined any lawsuit or filed any charge or claim against any of the Company Parties in any court or
before any government agency and has made no assignment of any rights Employee has asserted or may
have against any of the Company Parties to any person or entity, in each case, with respect to any
Released Claims.

     By executing and delivering this Agreement, Employee acknowledges that:

     (a) Employee has carefully read this Agreement;

     (b) Employee has had at least 21 days to consider this Agreement before the execution
and delivery hereof to the Company;

     (c) Employee has been and hereby is advised in writing that Employee may, at Employee’s
option, discuss this Agreement with an attorney of Employee’s choice and that Employee has
had adequate opportunity to do so; and

     (d) Employee fully understands the final and binding effect of this Agreement; the only
promises made to Employee to sign this Agreement are those stated in the Employment
Agreement and herein; and Employee is signing this Agreement voluntarily and of Employee’s
own free will, and that Employee understands and agrees to each of the terms of this
Agreement.

     This Agreement will not be effective unless Employee executes this Agreement before a notary
public on a day after ___and before ___and delivers an original
counterpart of the executed and notarized Agreement to the Company on or prior to
___.

     Notwithstanding the initial effectiveness of this Agreement, Employee may revoke the delivery
(and therefore the effectiveness) of this Agreement within the seven day period beginning on the
date Employee delivers this Agreement to the Company (such seven day period being referred to
herein as the “Release Revocation Period"). To be effective, such revocation must be in writing
signed by Employee and must be delivered to the Chief Executive Officer of the Company before 11:59
p.m., Houston, Texas time, on the last day of the Release Revocation Period. If an effective
revocation is delivered in the foregoing manner and timeframe, this Agreement shall be of no force
or effect and shall be null and void ab initio. No consideration shall be paid [nor
increase in the vested percentage of the Initial Option shall occur] if this Agreement is revoked
by Employee in the foregoing manner.

Cardtronics, LP

Employment Agreement

Drew Soinski

Exhibit B — Release Agreement
Page 2

 

 

Executed on this ___day of ___, ___.

	 	 	 	 	 
	 	Drew Soinski

 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	STATE OF

	 	                               
	 	§
	 

	 	 	 	§
	COUNTY OF

	 	                           
	 	§

     BEFORE ME, the undersigned authority personally appeared Drew Soinski, by me known or who
produced valid identification as described below, who executed the foregoing instrument and
acknowledged before me that he subscribed to such instrument on this ___day of ___,
___.

 

NOTARY PUBLIC in and for the

State of _____________

My Commission Expires: ___________

Identification produced:

Cardtronics, LP

Employment Agreement

Drew Soinski

Exhibit B — Release Agreement
Page 3exv10w19

 

Exhibit 10.19

DATED 17 MAY 2005

(1) BANK MACHINE LIMITED

(2) RON DELNEVO

AMENDED AND RESTATED SERVICE AGREEMENT

1

 

CONTENTS

Clause

	 	 	 	 	 	 	 
	1.

	 	Definitions and Interpretation
	 	 	3	 
	2.

	 	Appointment and Term
	 	 	6	 
	3.

	 	Duties
	 	 	6	 
	4.

	 	Conflicts of Interest and Dealings in Securities
	 	 	7	 
	5.

	 	Salary and Bonus
	 	 	8	 
	6.

	 	Car Allowance
	 	 	9	 
	7.

	 	Pension and other Benefits
	 	 	9	 
	8.

	 	Holidays
	 	 	10	 
	9.

	 	Incapacity
	 	 	11	 
	10.

	 	Expenses
	 	 	12	 
	11.

	 	Termination
	 	 	12	 
	12.

	 	Confidentiality
	 	 	15	 
	13.

	 	Protection of Business Interests
	 	 	15	 
	14.

	 	Intellectual Property Rights
	 	 	15	 
	15.

	 	Disciplinary and Grievance Procedure
	 	 	16	 
	16.

	 	Working Time
	 	 	17	 
	17.

	 	Employee Information
	 	 	17	 
	18.

	 	Notices
	 	 	18	 
	19.

	 	Deductions
	 	 	18	 
	20.

	 	Disclosures in the Public Interest
	 	 	18	 
	21.

	 	General
	 	 	18	 

Schedule

	 	 	 	 	 	 	 
	1.

	 	Power of Attorney
	 	 	20	 
	2.

	 	Protection of Business Interests
	 	 	22	 

2

 

THIS AGREEMENT is made on 17 May 2005

BETWEEN:

	(1)	 	BANK MACHINE LIMITED (registered number 4594964) whose registered office is at Unit 1, The
Beacons, Beaconsfield Road, Hatfield, Hertfordshire AL10 8RS (the Company); and
	 
	(2)	 	RON DELNEVO of 119 Pollards Hill South, London SW16 4LS (the Executive).

IT IS AGREED as follows:

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	In this Agreement the following words and expressions shall have the following meanings:

	 	 	 
	Act

	 	the Employment Rights Act 1996.
	 
	 	 
	Affiliate

	 	means with respect to any Person, any other Person directly or
indirectly controlling, controlled by or under common control with
such Person. For the purpose of this definition, the term “control”
(including with correlative meanings, the terms “controlling”,
“controlled by” and “under common control with”) as used with
respect to any Person, shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of the
management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise.
	 
	 	 
	Articles of Association

	 	the Articles of Association of the Company from time to time.
	 
	 	 
	Board

	 	the board of directors of the Company from time to time.
	 
	 	 
	Cause

	 	for the purposes of Exhibit B Section 8 of the Investors Agreement,
“Cause” shall mean any event set out in Clause 11.3 of this
Agreement.
	 
	 	 
	Effective Date

	 	17 May 2005.

3

 

	 	 	 	 	 	 	 
	Group Company
	 	(a)	 	any undertaking which from time to time is:
	 
	 	 	 	 	 	 
	 

	 	 	 	(i)
	 	a subsidiary of the Company;
	 
	 	 	 	 	 	 
	 

	 	 	 	(ii)
	 	a parent undertaking of the Company (for the avoidance of
doubt, such parent undertaking to include Cardtronics, Inc. until
the date it ceases to be a parent undertaking of the Company); or
	 
	 	 	 	 	 	 
	 

	 	 	 	(iii)
	 	a subsidiary of any such parent undertaking (for the avoidance
of doubt, such subsidiary to include subsidiaries and Affiliates of
Cardtronics, Inc. until the date Cardtronics, Inc. ceases to be a
parent undertaking of the Company); or
	 
	 	 	 	 	 	 
	 
	 	(b)	 	any other undertaking:
	 
	 	 	 	 	 	 
	 

	 	 	 	(i)
	 	in which any of the above from time to time holds directly or
indirectly; or
	 
	 	 	 	 	 	 
	 

	 	 	 	(ii)
	 	which from time to time holds in any of the above directly or indirectly,
	 
	 	 	 	 	 	 
	 

	 	 	 	50% or more of the issued share capital or voting rights.

	 	 	 	 
	 

	 	in this Agreement, the words subsidiary and parent undertaking shall
have the meanings attributed to them by the Companies Act 1985.
	 
	 	 
	Investors Agreement

	 	the First Amended and Restated Investors Agreement of 10 February
2005 made between Cardtronics, Inc. and the Securityholders (as
defined therein) as adhered to by the Executive on or around the
date of this Agreement.
	 
	 	 
	Person

	 	means an individual, corporation, limited liability company,
partnership, association, trust or other entity or organisation,
including a government or political subdivision or an agency
thereof.

4

 

	 	 	 	 
	Share Sale and
Purchase Agreement

	 	the agreement of even date to this Agreement made between the
Sellers and Cardtronics Limited.
	 
	 	 
	Term

	 	the period of the Executive’s employment hereunder.
	 
	 	 
	Termination Date

	 	(other than for the purposes of Schedule 2 to this Agreement) the
date on which the employment of the Executive under this Agreement
shall terminate for whatever reason.
	 
	 	 
	Totally Disabled

	 	shall for the purposes of the Non-Statutory Option Agreement of even
date to this Agreement made between Cardtronics, Inc. and the
Executive, mean failure by the Executive, by reason of illness,
incapacity or other disability, to perform his duties or fulfil his
obligations under this Agreement in the view of the Company and as
certified in writing by a competent medical practitioner chosen by
the Company for a cumulative total of 180 days in any 12-month
period.

	 	 	and derivative expressions shall be construed accordingly.
	 
	1.2	 	Words and phrases which are not defined in this Agreement but which are defined in the Act,
the Companies Act 1985 or the Insolvency Act 1986 shall be construed as having those meanings.
	 
	1.3	 	References to any statute, statutory instrument or any statutory provision shall be construed
as references to the statute, statutory instrument or statutory provision as in force at the
date of this Agreement and as subsequently re-enacted, consolidated or amended and shall
include references to any statute, statutory instrument or any statutory provision of which it
is a re-enactment, consolidation or amendment.
	 
	1.4	 	Unless the context otherwise requires, references in this Agreement to the masculine gender
shall, where appropriate, be deemed to include the feminine and vice versa.
	 
	1.5	 	The Schedules to this Agreement are an integral part of this Agreement and references to this
Agreement shall include reference thereto.
	 
	1.6	 	The headings in this Agreement are for convenience only and shall not affect the
interpretation of any provision of this Agreement.

5

 

	2.	 	APPOINTMENT AND TERM
	 
	2.1	 	The Company shall employ the Executive and the Executive shall serve the Company as Managing
Director on the terms set out in this Agreement.
	 
	2.2	 	The Executive’s employment under this Agreement commenced on the Effective Date and shall
terminate automatically on the fourth anniversary of the date of this Agreement unless
terminated earlier in accordance with this Agreement.
	 
	2.3	 	Notwithstanding the provisions of Clause 2.2, either party may terminate the Executive’s
employment by giving 12 months’ notice to the other, to expire at any time. The Executive’s
employment shall in any event terminate (without any compensation due and/or payable) on the
date on which the Executive reaches the age of 65.
	 
	2.4	 	For the purposes of the Act the Executive’s previous employment with Euronet Services (UK)
Limited and with Bank Machine (Holdings) Limited counts as part of the Executive’s continuous
employment with the Company and the Executive’s continuous employment accordingly began on 9
November 1999.
	 
	2.5	 	The Executive represents to the Company that he is entitled to enter into this Agreement and
to implement and carry out its terms and that by so doing he shall not be in breach of any
obligation (contractual or otherwise) to any third party which would entitle that third party
to damages or any other remedy at law.
	 
	3.	 	DUTIES
	 
	3.1	 	The Executive shall perform the duties and exercise the powers which from time to time may be
assigned to him or vested in him by the Board and shall devote the whole of his time, ability
and attention to his duties under this Agreement during normal office hours and at such other
times as may be reasonably required for the proper performance of his duties and he shall use
his best endeavours to promote the interests of the Company and any Group Company and shall
not knowingly do or willingly permit to be done anything to the prejudice, loss or injury of
the Company or any Group Company and shall carry out such duties in a competent manner. The
Executive shall not be entitled to any additional remuneration for work performed outside
normal office hours.
	 
	3.2	 	The Company shall be entitled at any time:

	 	3.2.1	 	subject to the Executive’s prior written consent to appoint a further
executive, director or employee having responsibilities similar to the Executive to act
jointly with the Executive

6

 

	 	 	 	and in that event the Executive shall perform his duties and exercise his powers in a
manner which shall be consistent with such appointment; and

	 	3.2.2	 	to require the Executive to perform services (which are consistent with his
current role) without any entitlement to additional remuneration arising not only for
the Company but also for any Group Company including, if so required, acting as a
director of any Group Company.

	3.3	 	The Executive shall at all times keep the Board promptly and fully informed (in writing if so
requested) of his conduct of the business or affairs of the Company and any Group Company and
provide such explanations of his conduct as the Board may reasonably require.
	 
	3.4	 	Notwithstanding the provisions of Clause 3.1, the Company may, at any time following the
giving of notice by either party to terminate this Agreement and for such period as it may
specify not exceeding the length of notice given, cease to provide work for the Executive, in
which event during such period the other provisions of this Agreement, including those
relating to the Executive’s remuneration, and the provisions of Clause 4.1 shall continue to
have full force and effect, but the Executive shall not be entitled to access to any premises
of the Company or any Group Company, or to contact any Relevant Customers, Prospective
Customers or Relevant Suppliers of the Company or any Group Company without the Company’s
written consent. During such period, the Board shall be entitled at any time to appoint a
further executive, director or employee having responsibilities similar to the Executive to
perform the Executive’s duties.
	 
	3.5	 	Subject always to Clause 4, during the Term the Executive shall not without the prior written
consent of the Board engage in any activities, public office or other occupation outside his
employment which may detract from the proper and timely performance of his duties under this
Agreement.
	 
	3.6	 	The Executive’s principal place of work shall be at Unit 1, The Beacons, Beaconsfield Road,
Hatfield, Hertfordshire AL10 8RS or such other location in the United Kingdom as may be
required by the Company from time to time (whether on a permanent or temporary basis) and he
shall undertake any travel (within the United Kingdom or abroad) as may be necessary for the
proper performance of his duties. Travelling and other expenses shall be reimbursed in
accordance with Clause 10.
	 
	4.	 	CONFLICTS OF INTEREST AND DEALINGS IN SECURITIES
	 
	4.1	 	During the Term, the Executive shall not whether alone or jointly with or on behalf of any
other person, firm or company and whether as principal, partner, manager, employee,
contractor, director, consultant, investor or otherwise (except as a representative or nominee
of the Company or any

7

 

	 	 	Group Company or otherwise with the prior consent in writing of the Board) be engaged,
concerned or interested in any other business or undertaking which:

	 	4.1.1	 	is wholly or partly in competition with any business carried on by the Company
or any Group Company, or
	 
	 	4.1.2	 	as regards any goods or services is a supplier to or customer of the Company
or any Group Company,

provided that the Executive may hold (directly or through nominees) by way of bona fide
personal investment

	 	(a)	 	any units of any authorised unit trust and up to 1% of the issued shares,
debentures or other securities of any class of any company whose shares are listed on a
recognised investment exchange within the meaning of section 285 of the Financial
Services and Markets Act 2000 or dealt in the Alternative Investment Market or any such
other exchange as may be specified by the Board from time to time; and
	 
	 	(b)	 	any shares in Euronet Worldwide Inc. acquired as a result of the exercise of
any option granted to the Executive pursuant to the Euronet Long Term Incentive Plan
adopted by Euronet Worldwide Inc. on 17 December 1996.

	4.2	 	The Executive acknowledges that he shall not enter into any transaction which contravenes the
insider dealing provisions contained in Part V of the Criminal Justice Act 1993.
	 
	4.3	 	The Executive shall at all times comply with any share dealing rules adopted from time to
time by the Company for directors of the Company and any Group Company and/or their employees.
	 
	5.	 	SALARY AND BONUS
	 
	5.1	 	The Executive shall receive a fixed annual salary of £135,000 which shall accrue from day to
day and be payable by equal monthly instalments in arrears on or before the last day of each
calendar month or such salary as may be agreed and confirmed to the Executive in writing by
the Company in its sole discretion from time to time. The Executive shall be eligible to be
considered for a discretionary increase of up to 5% in fixed annual salary provided that the
Executive shall not be entitled to any such increase unless approved by the Board of the
Company and the Board shall have sole discretion as to whether to award such an increase.
	 
	5.2	 	In addition to the Executive’s fixed annual salary, the Company may pay to the Executive a
bonus from time to time of such amount as the Company shall in its sole discretion determine.
The

8

 

	 	 	Executive shall be eligible to be considered for payment of a discretionary bonus of up to
40% of salary, based on the Company’s assessment of both the Executive’s personal
performance and the performance of the Company and Group Companies, provided that the
Executive shall not be entitled to be considered for a discretionary bonus unless approved
by the Board of the Company and the Board shall have sole discretion as to whether to award
such a bonus. For the avoidance of doubt, this Subclause 5.2 shall supersede existing
arrangements in relation to the Executive Directors Bonus Plan 2005. The Remuneration
Committee resolution dated 18 March 2005 relating to Executive Bonus arrangements in respect
of the Executive shall continue to apply subject to a 30% cap in relation to basic salary.
The Executive will be eligible for consideration for an additional discretionary bonus of up
to 10% of basic salary at the discretion of the Cardtronics Board of Directors’ Compensation
Committee, based on the performance of the Company and of the Executive.
	 
	5.3	 	The Executive shall not be entitled to any fees in respect of any directorship of the Company
or any Group Company and to give effect to this Clause the Executive shall forthwith pay to
the Company or procure that the Company is paid all such fees received.
	 
	6.	 	CAR ALLOWANCE
	 
	 	 	During the Term, the Company shall provide the Executive with a car allowance of £12,000 per
annum subject to tax and National Insurance which shall be payable by equal monthly
instalments on or before the last day of each calendar month.
	 
	7.	 	PENSION AND OTHER BENEFITS
	 
	7.1	 	The Company shall pay an annual contribution (in equal monthly instalments) of 10% of the
Executive’s basic annual salary payable from time to time under Clause 5.1 (which for the
avoidance of doubt excludes any bonus payable under Clause 5.2) into a personal pension scheme
to be nominated by the Executive. Such contributions shall be subject to the rules of such
scheme and any Inland Revenue limits from time to time in force.
	 
	7.2	 	A contracting-out certificate under the Pension Schemes Act 1993 is not in force for the
Executive’s employment.
	 
	7.3	 	During the Term, the Company shall pay in respect of the Executive, his spouse and dependent
children premiums to a private medical insurance scheme with a level of benefits comparable to
those provided as at the date of this Agreement.

9

 

	7.4	 	During the Term, the Company shall pay premiums to a life assurance scheme selected by the
Company and approved by the Inland Revenue for the Executive save that the Company shall not
be bound to pay such premiums to the extent that, and so long as, in the reasonable opinion of
the Company from time to time, life assurance at the requisite levels cannot reasonably be
obtained for the Executive at normal rates of premium for the Executive’s age and sex. The
Company shall be entitled at any time to cease paying premiums to such life assurance scheme
provided that it pays premiums to a replacement life assurance scheme intended to provide
benefits which taken overall are broadly comparable with those of the original life assurance
scheme.
	 
	7.5	 	During the Term, the Company shall pay premiums in respect of the Executive into a Directors
and Officers Liability Assurance Policy on such terms and at such level as shall be determined
by the Company in its absolute discretion from time to time.
	 
	7.6	 	Any benefits and/or cover available under Clauses 7.3, 7.4 and 7.5 above are/is subject to
the rules of the relevant scheme from time to time in force, which are available on request
from the Company, and to the approval of the relevant insurer.
	 
	8.	 	HOLIDAYS
	 
	8.1	 	The Executive shall, subject to this Clause 8, be entitled (in addition to the usual public
and bank holidays in England and Wales) to 25 days’ holiday on full pay in every calendar year
to be taken at such reasonable time or times as the Board shall approve provided that the
Board may require the Executive to take his outstanding holiday entitlement in any calendar
year during any notice period under Clause 2.3. The Executive may carry forward up to 5 days’
holiday from one calendar year to the following calendar year (provided that such carried
forward holiday may only be taken in that following calendar year) but any other holiday not
so used in a calendar year may not be carried forward and the Executive shall, subject to
Clause 8.2, have no right to payment in lieu of any holiday not taken.
	 
	8.2	 	For the calendar year in which the Executive’s employment commences the Executive shall be
entitled to his annual holiday entitlement calculated on a pro rata basis. Upon termination
of the Executive’s employment the Executive shall either be entitled to salary in lieu of any
outstanding pro rata holiday entitlement or be required to repay to the Company any salary
received in respect of holiday taken in excess of his pro rata holiday entitlement, such
payment to be calculated on the basis of l/260th of the fixed annual salary payable to the
Executive pursuant to Clause 5.1 for each day of outstanding or excess holiday entitlement as
appropriate.

10

 

	8.3	 	If this Agreement is terminated under Clause 11.3, Clause 8.2 continues to apply save that
the Executive will be entitled to the sum of £1 in lieu of holiday not taken at the
Termination Date.
	 
	9.	 	INCAPACITY
	 
	9.1	 	The Executive shall from time to time at the request and expense of the Company submit to
medical examinations and tests by a medical practitioner nominated by the Company to help
determine his fitness for continued employment or in connection with any benefits provided in
connection with his employment, the results of which shall, subject to the provisions of the
Access to Medical Reports Act 1988 (as applicable), be disclosed to the Company.
	 
	9.2	 	If the Executive is absent from and unable to perform his duties as a result of his
incapacity for a period of 7 days or more he will produce medical certificates to the Company
in respect of his absence.
	 
	9.3	 	Subject to Clause 9.4, if the Executive shall be absent from and unable properly to perform
his duties owing to his incapacity, the Executive shall be entitled to full salary and
benefits excluding any bonus or commission for up to 16 weeks of such absence in any rolling
period of 12 consecutive months. For the avoidance of doubt, such entitlement shall be
limited to each rolling 12-month period. Payment (if any) in respect of any further period of
absence shall be at the discretion of the Company.
	 
	9.4	 	The Executive’s entitlement under Clause 9.3 shall cease if at any time the Executive becomes
eligible to receive benefits under any permanent health insurance scheme or any other such
scheme in respect of which the Company or any Group Company pays or has paid premiums on
behalf of the Executive, in which case the Company shall have no further obligation to the
Executive under this Clause.
	 
	9.5	 	During any period of absence referred to in Clause 9.2, the Board shall be entitled at any
time to appoint a further Executive Director or employee to perform the Executive’s duties and
to exercise his powers. Following the conclusion of any such period of absence, such further
Executive Director or employee shall only continue in that role for as long as is deemed
necessary by the Board for the adequate handover of the Executive’s duties back to the
Executive.
	 
	9.6	 	The Company shall pay the Executive all sums payable by way of statutory sick pay in
accordance with the legislation in force at the time of absence and any remuneration paid
under Clause 9.3 shall be deemed to be inclusive of statutory sick pay.

11

 

	9.7	 	The Executive shall promptly inform the Company if his inability to perform his duties
results from incapacity caused by a third party and for which compensation is or may be
recoverable by or on behalf of the Executive. In that event, any payments made under Clause
9.3 shall be treated as being made to the Executive by way of loan and shall be recoverable by
the Company. The Executive will keep the Board regularly informed of the progress of any
action which he takes against such third party, provide such information as the Board may from
time to time reasonably require and will immediately notify the Board in writing of any
compromise, settlement, award or judgment in connection with the claim. At the Board’s
request, the Executive will refund to the Company the lesser of the amount recovered by him
and the aggregate cost of payments and benefits provided under Clause 9.3 in respect of such
period of absence. Any such payment under this Clause shall be subject to the maximum
aggregate sum permitted to be lent by the Company to the Executive under the restrictions
contained in the Companies Act 1985 relating to loans made to directors.
	 
	10.	 	EXPENSES
	 
	 	 	The Executive shall be entitled to be reimbursed all reasonable out-of-pocket expenses
(including hotel, travelling and entertainment expenses but excluding any car parking fines
or road traffic offence fines) reasonably incurred by him in the proper performance of his
duties, subject to the production of such receipts or other evidence as the Company may
reasonably require and subject to the Company’s executive expense reimbursement policies
adopted from time to time.
	 
	11.	 	TERMINATION
	 
	11.1	 	The Company shall at all times be entitled to terminate this Agreement pursuant to Clauses
2.2, 11.2, or 11.3 notwithstanding that such termination may prejudice the Executive’s
eligibility for or entitlement to receive benefits under any permanent health insurance scheme
or any other such scheme in respect of which the Company or any Group Company pays or has paid
premiums for the Executive or to sick pay referred to in Clause 9.3.
	 
	11.2	 	The Company may, at its sole and absolute discretion, terminate the Executive’s employment
forthwith at any time by serving a notice under this Clause stating that this Agreement is
being terminated in accordance with this Clause 11.2 and undertaking to pay to the Executive
within 14 days salary in lieu of any required period of notice or unexpired part thereof
(subject to tax and National Insurance) together with any accrued holiday entitlement only in
full and final settlement of his contractual claims, with deductions pursuant to Clause 8.2
where appropriate. For the avoidance of doubt, any such payment in lieu of notice shall not
exceed 12 months. Where the Company terminates this Agreement in accordance with this Clause
the terms of, inter alia, Clause 12, Clause 14 and Schedule 2 shall remain in full force and
effect.

12

 

	11.3	 	Notwithstanding the provisions of Clauses 11.1 and 11.2, the Company shall be entitled, by
notifying the Executive in writing, to terminate this Agreement and the Executive’s employment
forthwith without any payment by way of compensation, damages, payment in lieu of notice or
otherwise if the Executive shall:

	 	11.3.1	 	commit any act of serious misconduct;
	 
	 	11.3.2	 	commit any material or persistent breach of any of the terms or conditions of this
Agreement, the Share Sale and Purchase Agreement or the Investors Agreement including
any wilful neglect or refusal to carry out any of his duties or to comply with any
reasonable instruction given to him by the Board provided that if any such breach or
any such neglect or refusal is, in the reasonable opinion of the Board, capable of
remedy then this Clause 11.3.2 shall have effect only if written notice of that breach
is served by the Company on the Executive specifying that it is served under this
Clause 11.3.2 and the Executive shall have failed to remedy such a breach within 30
days of the service of such notice;
	 
	 	11.3.3	 	have a bankruptcy order made against him or shall compound with or enter into any
voluntary arrangements with his creditors;
	 
	 	11.3.4	 	be charged with or convicted of any criminal offence (other than an offence under
road traffic legislation in the UK or elsewhere for which a penalty of imprisonment
cannot be imposed);
	 
	 	11.3.5	 	be disqualified from holding office in the Company or any other company under the
Insolvency Act 1986 or the Company Directors Disqualification Act 1986 or be
disqualified or disbarred from membership of, or be subject to any serious disciplinary
sanction by, any professional or other body, which undermines the confidence of the
Board in the Executive’s continued employment with the Company;
	 
	 	11.3.6	 	act in any way which may in the reasonable opinion of the Board bring the Company or
any Group Company into disrepute or discredit; or
	 
	 	11.3.7	 	except where this has been required by the Company pursuant to Clause 11.4.2 resign
as a director of the Company,

in which event, for the purposes of this Agreement, the Termination Date shall be the date
of the written notice terminating the Executive’s employment.

13

 

	11.4	 	The Executive shall resign from the Board and the boards of any Group Company of which he is
a director:

	 	11.4.1	 	immediately on death;
	 
	 	11.4.2	 	if at any time during the term the Executive is prevented from performing his duties
whether through incapacity in excess of 3 consecutive months or because the Company has
exercised its rights under Clause 3.4 and the Company requires the Executive to resign;
and in any event
	 
	 	11.4.3	 	on the Termination Date.

	11.5	 	The Executive shall, at the time of signing this Agreement, appoint the Company as his
attorney by executing a Power of Attorney in the form set out in Schedule 1.
	 
	11.6	 	The exercise by the Company of its right of termination under Clause 11.3 shall be without
prejudice to any other rights or remedies which the Company or any Group Company may have or
be entitled to exercise against the Executive.
	 
	11.7	 	If the employment of the Executive under this Agreement shall be terminated for the purpose
of reconstruction or amalgamation only whether by reason of the liquidation of the Company or
otherwise and he shall be offered employment with any concern or undertaking resulting from
this reconstruction or amalgamation on terms and conditions no less favourable than the terms
of this Agreement (including for the avoidance of doubt his length of continuous employment)
then the Executive shall have no claim against the Company in respect of the termination of
his employment hereunder.
	 
	11.8	 	The Executive shall not at any time during any period when he is required to cease the
performance of his duties under Clause 3.4 or after the Termination Date make any public
statements in relation to the Company or any Group Company or any of their officers or
employees. The Executive shall not after the Termination Date represent himself as being
employed by or connected with the Company or any Group Company.
	 
	11.9	 	All property of the Company and any Group Company including all credit, charge and expense
cards, books, notes, memoranda, correspondence, tapes, codes, keys, papers, drawings, designs,
documents, records, computer discs, computer hardware, computer software and mobile telephones
in the possession or control of the Executive are and remain the property of the Company or
such Group Company and the Executive shall deliver all such items in his possession, custody
or control immediately to the Company on the Termination Date, or earlier if requested by the
Company.

14

 

	12.	 	CONFIDENTIALITY
	 
	12.1	 	The Executive acknowledges that during the Term he shall in the performance of his duties
become aware of trade secrets and other confidential information relating to the Company, the
Group Companies, their businesses and its or their past, current or prospective clients or
customers and their businesses.
	 
	12.2	 	Without prejudice to his general duties at common law in relation to such trade secrets and
other confidential information, the Executive shall not during the Term or at any time
thereafter disclose or communicate to any person or persons or make use of or copy (other than
in the proper performance of his duties under this Agreement) and shall use his best
endeavours to prevent any disclosure, communication or use by any other person of any such
trade secrets or confidential information and all books, notes, memoranda, correspondence,
papers, drawings, designs, documents, records, computer discs, computer hardware or computer
software containing such trade secrets or confidential information except he shall be
permitted to do so where disclosure is required by law or with the express written consent of
the Board.
	 
	12.3	 	The provisions of this Clause shall cease to apply to information or knowledge which comes
into the public domain otherwise than by reason of the default of the Executive.
	 
	12.4	 	For the avoidance of doubt, the Executive’s obligations in relation to confidential
information gained during the course of the Executive’s employment under this Clause 12 relate
to the Company and to any Group Company, even if a Group Company ceases to be a Group Company
after the Executive has become aware of such confidential information, and such obligations
shall survive the termination or expiry of this Agreement.
	 
	13.	 	PROTECTION OF BUSINESS INTERESTS
	 
	 	 	The Executive shall be bound by the provisions of Schedule 2.
	 
	14.	 	INTELLECTUAL PROPERTY RIGHTS
	 
	14.1	 	To the extent permitted by law, all intellectual property rights which arise during the
period of the Executive’s employment by the Company and by virtue of his activities in the
course of his employment shall belong to the Company absolutely. These shall include (without
limitation) copyright, trade marks, patents and other rights in inventions, trade and business
names, design rights and registered designs, rights in know-how and rights in databases and in
each case whether registered or unregistered which may from time to time subsist in any part
of the world and all applications for the grant of the foregoing.

15

 

	14.2	 	The Executive further acknowledges that he has a special obligation to further the interests
of the Company’s undertaking (for the purposes of Section 39(1)(b) of the Patents Act 1977)
and agrees that patent rights which arise from an invention made in the course of the normal
duties of the Executive or outside the course of those duties (as envisaged by Section
39(1)(a) of the said Act) shall belong to the Company absolutely.
	 
	14.3	 	The Executive shall, at the request and expense of the Company, forthwith execute such
documents and do such things as may reasonably be required to obtain and enforce the Company’s
interest in any intellectual property rights falling within the scope of Clause 14.1.
	 
	14.4	 	The Executive shall at the time of signing this Agreement appoint the Company as his attorney
in the form set out in Schedule 1.
	 
	14.5	 	Where any intellectual property rights falling within the scope of Clause 14.1 have been
created jointly by the Executive and any other person or persons, the Executive shall, without
prejudice to his obligations under this Clause 14, use his best endeavours to procure that the
other person or persons assign(s) to the Company his or their interest in such rights.
	 
	14.6	 	Without prejudice to his obligations under Clauses 11.9 or 14.1 of this Agreement, the
Executive shall immediately on the Termination Date, or earlier if requested by the Company,
deliver to the Secretary of the Company or such other person as the Board may nominate in
writing all materials in his possession or in his control relating to any intellectual
property rights belonging to the Company (including rights falling within the scope of Clause
14.1 which have not yet formally vested in the Company) which shall include (without
limitation) all reports, studies, data, drawings, diagrams, charts, designs, records and
computer software on whatever media together with all drafts and working papers relating to
such materials.
	 
	15.	 	DISCIPLINARY AND GRIEVANCE PROCEDURE
	 
	15.1	 	Any disciplinary matters affecting the Executive will be dealt with by the Board and shall be
in accordance with the relevant UK legislation in respect of disciplinary and grievance
procedures in force from time to time. There are no specific disciplinary rules affecting the
Executive. Should the Executive wish to appeal against any disciplinary decision he should
submit his appeal in writing to the Board whose decision on such appeal shall be final.
	 
	15.2	 	If the Executive wishes to seek redress for any grievance relating to his employment he
should first discuss the matter with the Board. Any grievance procedures shall be conducted
in accordance with the relevant UK legislation in respect of disciplinary and grievance
procedures in force from time to

16

 

	 	 	time. If the matter is not settled following discussion with the Board, the Executive
should submit his grievance to the Board in writing.
	 
	15.3	 	In order to investigate a complaint against the Executive, the Company reserves the right to
suspend the Executive on full pay with full entitlement to all other benefits and to exclude
the Executive from any premises of the Company and any Group Company for so long as it deems
necessary to carry out a proper investigation and to hold any appropriate disciplinary
hearings.
	 
	16.	 	WORKING TIME
	 
	16.1	 	The Working Time Regulations 1998 provide that the average working time including overtime
must not exceed 48 hours for each period of 7 days. The Executive agrees that this limit
shall not apply to him. This agreement regarding the Working Time Regulations will remain in
force indefinitely during the Executive’s employment with the Company but the Executive or the
Company may terminate this agreement regarding the Regulations at any time by giving not less
than three months’ written notice to the other. The Executive must supply to the Company on
request information regarding the hours the Executive has worked (whether for the Company or,
to the extent allowed by the Executive’s obligations to the Company, anyone else) to enable
the Company to comply with its obligations under the Regulations.
	 
	16.2	 	Normal office hours are 9 a.m. to 5 p.m. Monday to Friday, but due to the particular needs of
the Company, the Executive is required to work such hours as the needs of the business
requires. This may include working in the evenings outside normal office hours, at weekends
or on public holidays. No additional pay or time off will be permitted.
	 
	17.	 	EMPLOYEE INFORMATION
	 
	17.1	 	The Company and/or any Group Company processes employee information which is held for the
purposes of staff administration (the Agreed Purposes).
	 
	17.2	 	Processing includes obtaining, holding, editing, destroying and disclosing employee
information to any Group Company and/or any third parties (for example, insurers, pension
scheme trustees, banks and other employers following a business transfer or merger) for the
Agreed Purposes (Processing or Process).
	 
	17.3	 	The Company may transfer employee information to any Group Company and/or any third parties
(for example, insurers, pension scheme trustees, banks and other employers following a
business transfer or merger) located inside and outside the European Economic Area in order to
Process employee information for the Agreed Purposes.

17

 

	17.4	 	The Executive agrees to provide his employee information to the Company and consents to the
Processing of employee information (either inside or outside the EEA) for the Agreed Purposes.
	 
	17.5	 	If the Executive’s circumstances change at any time he should inform the Company as soon as
possible in order to ensure that all employee information remains accurate.
	 
	18.	 	NOTICES
	 
	 	 	Any notice to be given under this Agreement shall be in writing. Notices may be served by
either party by personal service or by recorded delivery or by first-class post addressed to
the other party or by leaving such notice at (in the case of the Company) its registered
office for the time being and (in the case of the Executive) his last known address and any
notice given shall be deemed to have been served at the time at which the notice was
personally served or if sent by recorded delivery at the time of delivery as recorded or if
sent by first-class post on the second working day after posting or in the case of being
left as appropriate at the registered office or last known address, the date on which it was
so left.
	 
	19.	 	DEDUCTIONS
	 
	19.1	 	The Executive shall pay to the Company any sums owing by him to the Company upon demand by
the Company at any time (whether during the Term or thereafter).
	 
	19.2	 	For the purposes of the Act and otherwise, the Executive consents to the deduction from his
wages or from any other sums owed to the Executive by the Company of any sums owing by him to
the Company at any time.
	 
	19.3	 	This Clause is without prejudice to the rights of the Company to recover any sums or balance
of sums owing by the Executive to the Company by legal proceedings.
	 
	20.	 	DISCLOSURES IN THE PUBLIC INTEREST
	 
	 	 	Nothing in this Agreement shall preclude the Executive from making a protected disclosure
under the Act.
	 
	21.	 	GENERAL
	 
	21.1	 	The information in this Agreement constitutes a written statement of the terms of employment
of the Executive in accordance with the provisions of the Act.

18

 

	21.2	 	Except for the bonus agreement between Bank Machine Limited and the Executive of even date
with this Agreement, this Agreement (including the Schedules to it) constitutes the entire and
only legally binding agreement between the parties relating to the employment of the Executive
by the Company or any Group Company and replaces any previous employment agreements or
arrangements and for the avoidance of doubt, replaces the agreement dated 17 January 2003
between the Executive and Bank Machine (Holdings) Limited. No variation to this Agreement
shall be effective unless made by the parties and evidenced in writing and signed by or on
behalf of the parties and expressed to be such a variation.
	 
	21.3	 	This Agreement may be executed in one or more counterparts which, when taken together, shall
be deemed to constitute the entire agreement.
	 
	21.4	 	No term in this Agreement is enforceable under the Contracts (Rights of Third Parties) Act
1999 but this does not affect any right or remedy of a third party which exists or is
available apart from that act.
	 
	21.5	 	Where, in connection with this Agreement, the Executive undertakes any obligation in respect
of any Group Company, the Executive unconditionally and irrevocably acknowledges and agrees
that the Company is entering into this Agreement and accepting the benefit of such obligations
not only for itself but also as agent and trustee for such other Group Company.
	 
	21.6	 	No failure or delay by the Company in exercising any remedy, right, power or privilege under
or in relation to this Agreement shall operate as a waiver of the same nor shall any single or
partial exercise of any remedy, right, power or privilege preclude any further exercise of the
same or the exercise of any other remedy, right, power or privilege.
	 
	21.7	 	No waiver by the Company of any of the requirements of this Agreement or of any of its rights
under this Agreement shall have effect unless given in writing and signed by the Board. No
waiver of any particular breach of the provisions of this Agreement shall operate as a waiver
of any repetition of that breach.
	 
	21.8	 	If any provision of this Agreement shall be, or become, void or unenforceable for any reason
within any jurisdiction, this shall affect neither the validity of that provision within any
other jurisdiction nor any of the remaining provisions of this Agreement.
	 
	21.9	 	This Agreement and the rights and obligations of the parties hereto shall be governed by and
construed in accordance with the laws of England.

AS WITNESS the hands of the parties hereto or their duly authorised representatives:

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SCHEDULE 1

POWER OF ATTORNEY

BY THIS POWER OF ATTORNEY made on 17 May 2005, I, RON DELNEVO of 119 Pollards Hill South, London
SW16 4LS in accordance with the terms of the service agreement (the Service Agreement) of even date
between myself and BANK MACHINE LIMITED (the Company) APPOINT the Company to act as my attorney
with authority and on my behalf (so that words and expressions defined in the Service Agreement
shall have the same meanings herein):

	(a)	 	on or after the Termination Date to do all such things and sign any documents as may be
required under the constitution of the Company and each Group Company to make my resignation
as a director of those companies effective; and
	 
	(b)	 	to sign or execute any and all agreements, instruments, deeds or other papers and to do all
such things in my name as may be necessary or desirable to implement my obligations in
connection with Clause 14 of the Service Agreement; and
	 
	(c)	 	after the expiry of 2 days from the Company having requested my resignation pursuant to
Clause 11.4.2 of the Service Agreement to do all such things and sign any documents as may be
required under the constitution of the Company and each Group Company to make my resignation
as a director of those companies effective; and
	 
	(d)	 	in respect of any shares in the Company or any Group Company which are vested in me as a
nominee of the Company or any Group Company, to sign or execute any and all instruments, deeds
or other papers and to do all such things as may be necessary or desirable to transfer all
such shares; and
	 
	(e)	 	to appoint any substitute attorney and to delegate to that substitute all or any powers
conferred by this Power of Attorney.

I declare that this Power of Attorney, having been given by me to secure my obligations in
connection with Clauses 11.4 and 14 of the Service Agreement, shall be irrevocable in accordance
with Section 4 of the Powers of Attorney Act 1971.

IN WITNESS whereof this Power of Attorney has been duly executed.

	 	 	 	 	 
	EXECUTED as a DEED and

	 	)	 
	DELIVERED by

	 	) /s/ Ron Delnevo

	RON DELNEVO

	 	)	 
	in the presence of:

	 	) /s/ Ylan Steiner, Solicitor

20

 

Witness’ name:

Address:

Occupation:

21

 

SCHEDULE 2

PROTECTION OF BUSINESS INTERESTS

	1.	 	In this Schedule the following words and expressions shall have the following meanings:

	 	 	 
	Business

	 	the business or businesses of the Company or
any Group Company in or with which the
Executive has been involved or concerned in
the course of his employment at any time
during the Relevant Period.
	 
	 	 
	Directly or Indirectly

	 	the Executive acting either alone or jointly
with or on behalf of any other person, firm or
company, whether as principal, partner,
manager, employee, contractor, director,
consultant, investor or otherwise.
	 
	 	 
	Key Personnel

	 	the Chairman; the Finance Director, the Sales
Director, and the Operations Director (in each
case of the Company); and any other person who
is at the Termination Date or was at any time
during the Relevant Period employed or engaged
as a consultant in the Business in an
executive or senior managerial or senior sales
capacity and in each case with whom the
Executive has had dealings in the course of
his employment other than in a minimal way at
any time during the Relevant Period.
	 
	 	 
	Prospective Customer

	 	any person, firm or company who has been
engaged in negotiations with the Company or
any Group Company with a view to entering into
a contract for purchasing or leasing of goods
and/or services from the Company or any Group
Company at any time during the Relevant Period
in which negotiations the Executive has been
personally concerned other than in a minimal
way in the course of his employment.
	 
	 	 
	Relevant Area

	 	United Kingdom and the Republic of Ireland.
	 
	 	 
	Relevant Customer

	 	any person, firm or company who at any time
during the Relevant Period was a customer of
the Company or any Group Company, with whom or
which the Executive directly dealt other than
in a minimal way or for whom or which the Executive

22

 

	 	 	 
	 

	 	was responsible or in respect of
whom the Executive was in possession of
confidential information in the course of his
employment at any time during the Relevant
Period whether or not goods and/or services
were provided during that period.
	 
	 	 
	Relevant Goods and Services

	 	any other goods and/or services which are (a)
the same as or (b) similar to those supplied
by the Company or any Group Company at any
time during the Relevant Period, or those
planned to be supplied by the Company or any
Group Company at any time during the
Restricted Period, in particular the provision
of commercial and operational services for the
ownership and/or outsourced management of
Automated Teller Machines, and in the supply
or planned supply of which the Executive was
directly concerned other than in a minimal way
in the course of his employment at any time
during the Relevant Period.
	 
	 	 
	Relevant Period

	 	the period of 12 months immediately prior to
the Termination Date or, where the Executive
has not been provided with work pursuant to
Clause 3.4 of this Agreement, the period of 12
months immediately prior to the start of any
period during which the Executive has not been
provided with work pursuant to Clause 3.4 of
this Agreement.
	 
	 	 
	Relevant Supplier

	 	any person, firm or company who at any time
during the Relevant Period was a supplier to
the Company or any Group Company of any goods
or services and with whom or which the
Executive had direct dealings in the course of
his employment other than in a minimal way at
any time during the Relevant Period.
	 
	 	 
	Restricted Period

	 	the period of 12 months starting with the
Termination Date less any period during which
the Executive has not been provided with work
pursuant to Clause 3.4 of this Agreement.
	 
	 	 
	Termination Date

	 	the date on which the employment of the
Executive under this Agreement shall
terminate.

23

 

	2.	 	The Executive shall not without the prior written consent of the Board directly or indirectly
at any time during the Restricted Period:

	 	2.1	 	solicit away from the Company or any Group Company; or
	 
	 	2.2	 	endeavour to solicit away from the Company or any Group Company; or
	 
	 	2.3	 	employ or engage; or
	 
	 	2.4	 	endeavour to employ or engage,

any Key Personnel.

	3.	 	The Executive shall not without the prior written consent of the Board directly or indirectly
at any time within the Restricted Period:

	 	3.1	 	solicit the custom of; or
	 
	 	3.2	 	deal with,

any Relevant Customer or Prospective Customer in respect of any Relevant Goods and Services;
or

	 	3.3	 	interfere; or
	 
	 	3.4	 	endeavour to interfere,

with either the continuance of supplies to the Company and/or any Group Company (or the
terms relating to those supplies) by any Relevant Supplier or the relations between the
Company and/or any Group Company and any Relevant Customer or any Prospective Customer.

	4.	 	The Executive shall not without the prior written consent of the Board directly or indirectly
at any time within the Restricted Period engage or be concerned or interested in any business
which within the Relevant Area at any time during the period of 8 months starting with the
Termination Date less any period during which the Executive has not been provided with work
pursuant to Clause 3.4 of this Agreement (a) competes or (b) will compete or (c) is likely to
compete with the Business provided that the Executive may hold (directly or through nominees)
by way of bona fide personal investment any units of any authorised unit trust and up to 1% of
the issued shares, debentures or securities of any class of any company whose shares are
listed on a recognised investment exchange within the meaning of Section 285 of the Financial
Services and Markets Act 2000 or dealt in the Alternative Investment Market.

24

 

	5.	 	The Executive acknowledges that the provisions of this Schedule are fair, reasonable and
necessary to protect the goodwill and interests of the Company and the Group Companies.
	 
	6.	 	The Executive acknowledges that the provisions of this Schedule including paragraphs shall
constitute severable undertakings given for the benefit of the Company and each Group Company
and may be enforced by the Company on behalf of any of them.
	 
	7.	 	If any of the restrictions or obligations contained in this Schedule is held to be invalid or
unenforceable but would be valid or enforceable if part of the provision were deleted then
such restrictions or obligations shall apply with such deletions as may be necessary to make
them enforceable.
	 
	8.	 	The Executive acknowledges and agrees that he shall be obliged to draw the provisions of this
Schedule to the attention of any third party who may at any time before or after the
termination of the Executive’s employment hereunder offer to employ or engage the Executive
and for whom or with whom the Executive intends to work at any time during the Restricted
Period.

25

 

	 	 	 	 	 
	SIGNED by

	 	)	 
	a Director duly authorised

	 	)	 
	for and on behalf of

	 	) /s/ Anthony Horne

	BANK MACHINE

	 	)	 
	   LIMITED

	 	)	 
	SIGNED by RON DELNEVO

	 	) /s/ Ron Delnevo

	in the presence of:

	 	) /s/ Ylan Steiner, Solicitor

26

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