Document:

exv10w27

 

Exhibit 10.27

Cardtronics, Inc.

2006 Executive Bonus Plan

Overview

     In 2006, Cardtronics, Inc.’s (the “Company”) executive bonus plan will be based on the
achievement of a target level of earnings before interest, taxes, depreciation and amortization
(“EBITDA”), as outlined in the Company’s 2006 Annual Budget (the “Budget”). Additional adjustments
will be made to such EBITDA the amount for certain items, as provided for by the Company’s bank credit
facility. If the Company’s actual adjusted EBITDA falls below
90% of the Budget, or there is a
violation of a bank covenant, no bonus pool will be funded and no bonuses will be granted.

Bonus Pool

     Starting with the achievement of 90% of the budgeted EBITDA amount, the bonus pool will be
determined on the following basis:

	 	 	 
	EBITDA	 	% of Target
	90% of Budget
	 	50%
	95% of Budget
	 	75%
	100% of Budget
	 	100%
	105% of Budget
	 	150%
	110% of Budget
	 	200%
	115% of Budget
	 	250%
	120% of Budget
	 	300%
	125% of Budget
	 	350%
	130% of Budget
	 	400%

Individual Executive Performance

     All bonuses are considered to be discretionary and will be based on performance. Each
individual’s bonus, which must be approved by the Compensation Committee of the Company’s Board of
Directors, will be based on the achievement of his or her goals. Each executive’s 2006 goals will
be directly tied to achieving the 2006 Budget EBITDA amount. To ensure proper focus on the attainment of
the 2006 Budget EBITDA, each individual’s 2006 goals will be weighted/prioritized at the start of the
year.

Other Considerations

     Should the Board of Directors formally approve actions that will affect the attainment of the
Budget, the impact on the Budget will be determined and presented to the Board for approval. At
such time, a revised budgeted EBITDA figure will be determined for purposes of bonus
calculations. Additionally, should the Company make one or more acquisitions, the Budget will
be adjusted appropriately.

 

 

Effective Date

     The 2006 Executive Bonus Program is effective as of January 1, 2006. Audited financial results
will be used in the calculation of EBITDA, which is used in the ultimate calculation of the bonus
pool, if bonuses are paid. As a result, any payment of bonuses will be delayed until the results
of the Company’s 2006 audit are finalized. Each executive can expect to receive payment in March
2007. To be eligible to receive a bonus for fiscal 2006, each executive must be an active employee
on the date the bonus is paid.exv10w28

 

Exhibit 10.28

EXECUTION COPY

AMENDMENT NO. 4 TO CREDIT AGREEMENT

          AMENDMENT NO. 4 TO CREDIT AGREEMENT dated as of February 14, 2006 (this “Amendment”) among (a)
Cardtronics, Inc., a Delaware corporation (the “Borrower”), (b) Cardtronics, LP, a Delaware limited
partnership, Cardtronics GP, Inc., a Delaware corporation, and Cardtronics LP, Inc., a Delaware
corporation (collectively, the “Guarantors”), (c) the lenders party to the Credit Agreement
referred to below (the “Lenders”), and (d) BNP Paribas, as administrative agent (the
“Administrative Agent”) for the Lenders.

          PRELIMINARY STATEMENTS:

          (1) The Borrower, the Guarantors, the Lenders, the Administrative Agent and others have
entered into a Third Amended and Restated First Lien Credit Agreement dated as of May 17, 2005, as
amended by Amendment No. 1 to Credit Agreement dated as of July 6, 2005, Amendment No. 2 to Credit
Agreement dated as of August 5, 2005 and Amendment No. 3 to Credit Agreement dated as of November
17, 2005 (as so amended, the “Credit Agreement”; capitalized terms used herein and not otherwise
defined in this Amendment being used herein as defined in the Credit Agreement);

          (2) The Borrower has requested that the Lenders amend certain provisions of the Credit
Agreement as provided herein;

          (3) The Lenders have agreed, subject to the terms and conditions hereinafter set forth, to
amend the Credit Agreement as set forth below;

          (4) The Borrower has given notice to the Administrative Agent of the Borrower’s desire to
reduce the Total Revolving Credit Commitment, effective as of the effective date of the amendments
set forth herein, to $125 million.

          (5) NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto
hereby agree as follows:

          SECTION 1. Amendments to Credit Agreement. Upon, and subject to, the satisfaction of
the conditions precedent set forth in Section 2 below, the Credit Agreement is hereby amended as
follows:

     (a) The definition of “Total Leverage Ratio” in Section 1.01 of the Credit Agreement is
deleted in its entirety.

     (b) Section 8.12(a) of the Credit Agreement is deleted in its entirety.

     (c) Section 8.12(b) of the Credit Agreement is amended and restated in full to read as
follows:

 

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     “(b) Senior Leverage Ratio. The Borrower will not permit at any time the
Senior Leverage Ratio to be greater than the ratio set forth below for each corresponding
period set forth below:

	 	 	 
	Four (4) Quarter Period Ending:	 	Ratio:
	December 31, 2005
	 	3.50:1.00
	March 31, 2006
	 	2.00:1.00
	June 30, 2006
	 	2.00:1.00
	September 30, 2006
	 	2.00:1.00
	December 31, 2006
	 	2.00:1.00
	March 31, 2007
	 	2.00:1.00
	June 30, 2007
	 	2.00:1.00
	September 30, 2007
	 	2.00:1.00
	December 31, 2007
	 	2.00:1.00
	March 31, 2008 and each fiscal quarter-end thereafter
	 	1.75:1.00

     (d) Section 8.12(c) of the Credit Agreement is amended and restated in full to read as
follows:

     “(c) Fixed Charge Coverage Ratio. The Borrower will not permit at any time the
Fixed Charge Coverage Ratio to be less than the ratio set forth below for each corresponding
period set forth below:

	 	 	 
	Four (4) Quarter Period Ending:	 	Ratio:
	December 31, 2005
	 	1.25:1.00
	March 31, 2006
	 	1.25:1.00
	June 30, 2006
	 	1.25:1.00
	September 30, 2006
	 	1.25:1.00
	December 31, 2006
	 	1.35:1.00
	March 31, 2007
	 	1.35:1.00
	June 30, 2007
	 	1.35:1.00
	September 30, 2007
	 	1.35:1.00
	December 31, 2007
	 	1.40:1.00
	March 31, 2008 and each fiscal quarter-end thereafter
	 	1.40:1.00

     (e) The list of Scheduled Capital Expenditures in Section 8.13(a) of the Credit
Agreement is amended and restated in full to read as follows:

	 	 	 
	Test Period Ending:	 	Amounts:
	June 30, 2005
	 	$31,776,000
	September 30, 2005
	 	$37,689,854

 

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	Test Period Ending:	 	Amounts:
	December 31, 2005
	 	$39,083,512
	March 31, 2006
	 	$45,000,000
	June 30, 2006
	 	$50,000,000
	September 30, 2006
	 	$50,000,000
	December 31, 2006
	 	$50,000,000
	March 31, 2007
	 	$50,000,000
	June 30, 2007
	 	$50,000,000
	September 30, 2007
	 	$50,000,000
	December 31, 2007
	 	$50,000,000
	March 31, 2008 and each fiscal quarter-end thereafter
	 	$45,000,000

          SECTION 2. Conditions of Effectiveness of Amendment. (a) The amendments to the Credit
Agreement set forth in Section 1 shall become effective on the date (the “Effective Date”) when the
Administrative Agent shall have received counterparts of this Amendment executed by (i) the
Borrower and each Loan Party, (ii) the Administrative Agent, and (iii) the Requisite Lenders, or,
as to any of the foregoing parties, advice satisfactory to the Administrative Agent that each of
the foregoing parties has executed this Amendment.

          SECTION 3. Reduction of Total Revolving Commitment. Effective as of the Effective
Date, the Total Revolving Commitment shall be reduced to $125 million.

          SECTION 4. Representations and Warranties. The Borrower represents and warrants as
follows:

     (a) The execution, delivery and performance by each of the Borrower and each of the
other Loan Parties of this Amendment and the consummation of the transactions contemplated
hereby are within its corporate powers, have been duly authorized by all necessary corporate
action and do not contravene (i) its charter or by-laws or (ii) any law or any contractual
restriction binding on or affecting it the contravention of which would be reasonably likely
to have a Material Adverse Effect.

     (b) After giving effect to this Amendment, the representations and warranties contained
in each of the Loan Documents are correct in all material respects on and as of the date
hereof as though made on and as of such date (other than any such representations or
warranties that, by their terms, refer to a specific date, in which case as of such specific
date).

     (c) After giving effect to this Amendment, no event shall have occurred and be
continuing that constitutes a Default.

          SECTION 5. Reference to and Effect on the Credit Agreement and the Loan Documents

     (a) On and after the effectiveness of this Amendment, each reference in the Credit
Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to
the Credit Agreement, and each reference in the Notes and each of the other

 

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Loan Documents
to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the
Credit Agreement, shall mean and be a reference to the Credit Agreement, as amended by this
Amendment.

     (b) Each of the Credit Agreement, the Notes and each of the other Loan Documents, as
specifically amended by this Amendment, is and shall continue to be in full force and effect
and is hereby in all respects ratified and confirmed. Without limiting the generality of
the foregoing, the Guaranty does and shall continue to guarantee the Guaranteed Obligations,
in each case, as amended by this Amendment.

     (c) The execution, delivery and effectiveness of this Amendment shall not, except as
expressly provided herein, operate as a waiver of any right, power or remedy of any Lender
or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any
provision of any of the Loan Documents. On and after the effectiveness of this Amendment,
this Amendment shall for all purposes constitute a Loan Document.

          SECTION 6. Execution in Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute but one
and the same agreement. Delivery of an executed counterpart of a signature page to this Amendment
by telecopier shall be effective as delivery of a manually executed counterpart of this Amendment.

          SECTION 7. Governing Law. This Amendment shall be governed by, and construed in
accordance with, the laws of the State of New York.

[The remainder of this page is intentionally left blank]

 

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

	 	 	 	 	 	 	 
	 	 	Borrower
	 
	 	 	 	 	 	 
	 	 	CARDTRONICS, INC.
	 
	 	 	 	 	 	 
	 

	 	By	 	/s/ J. Chris Brewster	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: J. Chris Brewster	 	 
	 

	 	 	 	Title: CFO and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	Guarantors
	 
	 	 	 	 	 	 
	 	 	CARDTRONICS, LP
	 
	 	 	 	 	 	 
	 

	 	By:
	 	CARDTRONICS GP, INC.,	 	 
	 

	 	 	 	its general partner	 	 

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ J. Chris Brewster	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: J. Chris Brewster	 	 
	 

	 	 	 	Title: CFO and Treasurer	 	 

	 	 	 	 	 	 	 
	 	 	CARDTRONICS GP, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ J. Chris Brewster	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: J. Chris Brewster	 	 
	 

	 	 	 	Title: CFO and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	CARDTRONICS LP, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Peter J. Winnington	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Peter J. Winnington	 	 
	 

	 	 	 	Title: President	 	 

 

 

	 	 	 	 	 	 	 
	 	 	BNP PARIBAS, as Administrative Agent
	 
	 	 	 	 	 	 
	 

	 	By	 	/s/ Sean Davenport	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Sean Davenport	 	 
	 

	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	/s/ Matthew Wyatt	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Matthew Wyatt	 	 
	 

	 	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 
	 

	 	Lenders:	 	 
	 
	 
	 	BNP Paribas	 	 
	 	 	 	 	 
	 	 	[Please print name of lender]	 	 
	 
	 	 	 	 
	 

	 	By	 	/s/ Sean Davenport	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Sean Davenport
	 

	 	 	 	Title:   Director	 
	 
	 	 	 	 
	 

	 	By	 	/s/ Matthew Wyatt	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Matthew Wyatt
	 

	 	 	 	Title:   Vice President

 

 

	 	 	 	 	 
	 	Lenders: 

General Electric Capital Corporation

 	 
	 	By  	/s/ Jeffrey A. Skinner
 	 
	 	 	Name:  	Jeffrey A. Skinner 	 
	 	 	Title:  	Duly Authorized Signatory 	 
	 

 

 

	 	 	 	 	 
	 	Lenders:

Bank of America, N. A. as Lender

 	 
	 	By  	/s/ David A. Batson
 	 
	 	 	Name:  	David A. Batson 	 
	 	 	Title:  	Senior Vice President 	 
	 

 

 

Lenders:

	 	 	 	 	 
	 

	 	JP Morgan Chase Bank N.A.
	 	 
	 

	 	 	 	 
	 

	 	     [Please print name of lender]	 	 

	 	 	 	 	 
	 	 	 
	 	By  	                     /s/ Michael Becker
 	 
	 	 	Name:  	Michael Becker 	 
	 	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	Lenders:

AMEGY BANK NATIONAL ASSOCIATION

 	 
	 	By  	/s/ David C. Moriniere
 	 
	 	 	David C. Moriniere 	 
	 	 	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	Lenders:

COMPASS BANK

 	 
	 	By  	/s/ D. G. Mills
 	 
	 	 	Name:  	D. G. Mills 	 
	 	 	Title:  	Senior Vice President 	 
	 

 

 

	 	 	 	 	 
	 	Lenders:

Wells Fargo Bank, N.A.

 	 
	 	By  	/s/ Karen Patterson
 	 
	 	 	Name:  	Karen Patterson 	 
	 	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	Lenders: 

	 

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	     Allied Irish Banks, Plc
	 	 

	 	 	 	 	 
	 	By  	/s/ Gregory J. Wiske
 	 
	 	 	Name:  	Gregory J. Wiske 	 
	 	 	Title:  	Vice President

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