Document:

exv4w5

 

Exhibit 4.5

SUPPLEMENTAL INDENTURE

     This
Supplemental Indenture (this “Supplemental
Indenture”), dated as of
          , 2005,
is by and among Global Cash Access Holdings, Inc., a Delaware corporation (“Holdings”),
Global Cash Access, Inc., a Delaware corporation and successor to Global Cash Access, L.L.C., a
Delaware limited liability company (the “Company”), Central Credit, LLC, a Delaware limited
liability company, as the sole current Subsidiary Guarantor (as defined in the Indenture referred
to herein) and The Bank of New York, as trustee under the Indenture referred to below (the
“Trustee”).

W I T N E S S E T H

     WHEREAS, the Company and Global Cash Access Finance Corporation, a Delaware corporation that
was subsequently merged with and into the Company, has heretofore executed and delivered to the
Trustee an indenture (the “Indenture”), dated as of
March 10, 2004, providing for the issuance of an
aggregate principal amount of $235 million of 83/4% Senior Subordinated
Notes due 2012 (the “Notes”);

     WHEREAS, Holdings holds 100% of the outstanding equity interests in the Company and Holdings
desires to execute and deliver to the Trustee a supplemental indenture pursuant to which Holdings
shall unconditionally guarantee all of the Company’s obligations under the Notes and the Indenture
on the terms and conditions set forth herein (the “Guarantee”); and

     WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and
deliver this Supplemental Indenture.

     NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, Holdings and the Trustee mutually
covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:

     1. Capitalized Terms. Capitalized terms used herein without definition shall have
the meanings assigned to them in the Indenture.

     2. Agreement to Guarantee. Holdings hereby agrees as follows:

     (a)      Along with all Subsidiary Guarantors, to jointly and severally guarantee to each Holder of
a Note authenticated and delivered by the Trustee and to the Trustee and its successors and
assigns, irrespective of the validity and enforceability of the Indenture, the Notes or the
obligations of the Company hereunder or thereunder, that:

               (i)      the principal of and interest on the Notes will be promptly paid in full when due, whether
at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of and
interest on the Notes, if any, if lawful, and all other obligations of the Company to the Holders
or the Trustee hereunder or thereunder will be promptly paid in full or performed, all in
accordance with the terms hereof and thereof; and

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               (ii)      in case of any extension of time of payment or renewal of any Notes or any of such other
obligations, the same will be promptly paid in full when due or performed in accordance with the
terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise.
Failing payment when due of any amount so guaranteed or any performance so guaranteed for whatever
reason, Holdings and the Subsidiary Guarantors shall be jointly and severally obligated to pay the
same immediately.

     (b)      The obligations hereunder shall be unconditional, irrespective of the validity, regularity
or enforceability of the Notes or this Indenture, the absence of any action to enforce the same,
any waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof,
the recovery of any judgment against the Company, any action to enforce the same or any other
circumstance that might otherwise constitute a legal or equitable discharge or defense of a
guarantor.

     (c)      The following are hereby waived: diligence, presentment, demand of payment, filing of
claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company, protest, notice and all demands whatsoever.

     (d)      This Guarantee shall not be discharged except by complete performance of the obligations
contained in the Notes and the Indenture.

     (e)      If any Holder or the Trustee is required by any court or otherwise to return to the
Company, Holdings, the Subsidiary Guarantors, or any Custodian, Trustee, liquidator or other
similar official acting in relation to either the Company, Holdings or the Subsidiary Guarantors,
any amount paid by either to the Trustee or such Holder, this Guarantee, to the extent theretofore
discharged, shall be reinstated in full force and effect.

     (f)      Holdings shall not be entitled to any right of subrogation in relation to the Holders in
respect of any obligations guaranteed hereby until payment in full of all obligations guaranteed
hereby.

     (g)      As between Holdings and the Subsidiary Guarantors, on the one hand, and the Holders and
the Trustee, on the other hand, (x) the maturity of the obligations guaranteed hereby may be
accelerated as provided in Article Six of the Indenture for the purposes of this Guarantee,
notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect
of the obligations guaranteed hereby, and (y) in the event of any declaration of acceleration of
such obligations as provided in Article Six of the Indenture, such obligations (whether or not due
and payable) shall forthwith become due and payable by Holdings and the Subsidiary Guarantors for
the purpose of this Guarantee.

     (h)      The obligations of Holdings pursuant to its Guarantee shall be limited to the maximum
amount which, after giving effect to any all other contingent and fixed liabilities that are
relevant under any applicable Bankruptcy or fraudulent conveyance laws, and after giving effect to
any collections from, rights to receive contribution from or payments made by or on behalf of any
Subsidiary Guarantor in respect of the obligations of such Subsidiary Guarantor under Article
Eleven of the Indenture, will result in the obligations of Holdings under its Guarantee not
constituting a fraudulent transfer or conveyance under federal or state law.

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     3. Subordination. The Obligations of Holdings under its Guarantee pursuant to this
Supplemental Indenture shall be junior and subordinated to the Senior
Indebtedness (as defined in the Indenture, except that all references
in such definition to “Co-Obligors” shall be deemed for
purposes of this section to be references to “Holdings”) of Holdings on
the same basis as the Notes are junior and subordinated to the Senior Indebtedness of the Company.
For the purposes of the foregoing sentence, the Trustee and the Holders shall have the right to
receive and/or retain payments by Holdings only at such time as they may receive and/or retain
payments in respect of the Notes pursuant to the Indenture, including Article Ten thereof.

     4. Execution and Delivery. Holdings agrees that its Guarantee shall remain in full
force and effect notwithstanding any failure to endorse on each Note a notation of such Guarantee.

     5. No Recourse Against Others. No director, officer, employee, incorporator or
stockholder of the Company, Holdings or any Subsidiary Guarantor, as such, shall have any liability
for any obligations of the Company, Holdings or any Subsidiary Guarantor under the Notes, this
Indenture, the Guarantee or for any claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder of Notes by accepting a Note waives and releases all
such liability. The waiver and release are part of the consideration for issuance of the Notes.
The waiver may not be effective to waive liabilities under the federal securities laws.

     6. NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN
AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE BUT WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

     7. Counterparts. The parties may sign any number of copies of this Supplemental
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.

     8. Effect of Headings. The Section headings herein are for convenience only and
shall not affect the construction hereof.

     9. Trustee. The Trustee shall not be responsible in any manner whatsoever for or in
respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the
recitals contained herein, all of which recitals are made solely by Holdings and the Company.

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     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed and attested, all as of the date first above written.

Dated:
                , 2005

	 	 	 	 	 
	 	GLOBAL CASH ACCESS HOLDINGS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Kirk Sanford 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	GLOBAL CASH ACCESS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Kirk Sanford 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	CENTRAL CREDIT, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	Kirk Sanford 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	THE BANK OF NEW YORK, AS TRUSTEE

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

GUARANTEE

     For value received, Global Cash Access Holdings, Inc., a Delaware corporation (“Holdings”)
has, jointly and severally with each Subsidiary Guarantor (as defined in the Indenture, which term
includes any successor person under the Indenture), fully and unconditionally and irrevocably
guaranteed, to the extent set forth in the Indenture and subject to the provisions in the Indenture
dated as of March 10, 2004, as amended by that certain Supplemental
Indenture dated as of
                
                , 2005, (the “Indenture”) among Global Cash Access, Inc., a Delaware corporation
and successor to Global Cash Access, L.L.C., a Delaware limited liability company (the “Company”),
the Subsidiary Guarantors (as defined in the Indenture), and The Bank of New York, as trustee (the
“Trustee”), (a) the due and punctual payment of the principal of, premium, if any, and interest on
the Notes (as defined in the Indenture), whether at maturity, by acceleration, redemption or
otherwise, the due and punctual payment of interest on overdue principal and premium, and, to the
extent permitted by law, interest, and the due and punctual performance of all other obligations of
the Company to the Holders (as defined in the Indenture) or the Trustee all in accordance with the terms of the Indenture and (b)
in case of any extension of time of payment or renewal of any Notes or any such other obligations,
that the same will be promptly paid in full when due or performed in accordance with the terms of
the extension or renewal, whether at stated maturity, by acceleration or otherwise. The obligations
of Holdings to the Holders of Notes and to the Trustee pursuant to this Guarantee are expressly set
forth in the Indenture, and reference is hereby made to the Indenture for the precise terms of the Guarantee. The
Indebtedness evidenced by this Guarantee is, to the extent and in the manner provided in the
Indenture, subordinate and subject in right of payment to the prior payment in full of all Senior
Indebtedness (as defined in the Indenture, except that all references
in such definition to “Co-Obligors” shall be deemed to be
references to “Holdings”) of Holdings, whether outstanding on the date of the Indenture or thereafter, and this
Guarantee is issued subject to such provisions. Each Holder of a Note, by accepting the same, (a)
agrees to and shall be bound by such provisions, (b) authorizes and directs the Trustee, on behalf
of such Holder, to take such action as may be necessary or appropriate to effectuate the
subordination as provided in the Indenture, and (c) appoints the Trustee as attorney-in-fact of
such Holder for such purpose; provided that the Indebtedness evidenced by this Guarantee shall
cease to be so subordinated and subject in right of payment upon any defeasance of this Note in
accordance with the provisions of the Indenture. This Guarantee shall be governed by and construed
in accordance with the laws of the State of New York, without regard to conflicts of laws
principles thereof.

 

 

     IN WITNESS WHEREOF, Holdings has caused this Guarantee to be
signed manually or by facsimile by its duly authorized officers.

	 	 	 	 	 
	 	GLOBAL CASH ACCESS HOLDINGS, INC.

 	 
	 	By:  	 	 
	 	 	Kirk Sanford, President and Chief Executive Officer 	 
	 	 	 
	 	By:  	
 	 
	 	 	Harry Hagerty, Chief Financial Officerexv10w26

 

Exhibit 10.26

EMPLOYMENT AGREEMENT

     This Employment Agreement (this “Agreement”) by and between Global Cash Access, Inc., a
Delaware corporation (the “Company”), and Kirk E. Sanford
(“Executive”), is entered into on March 22, 2005, to be effective upon the consummation of the initial public offering of equity
securities of Global Cash Access Holdings, Inc., a Delaware corporation and the sole stockholder of
the Company, pursuant to an effective registration statement under the Securities Act of 1933, as
amended (the “Effective Date”).

R E C I T A L S

     A. Executive has been employed by the Company pursuant to an oral arrangement and has been
appointed President and Chief Executive Officer by the Board of Directors of the Company on June 7,
2004.

     B. The Company desires assurance of the continued association and services of Executive in
order to retain Executive’s experience, skills, abilities, background and knowledge, and desires to
memorialize the terms and conditions of Executive’s services as set forth in this Agreement.

     C. Executive desires to continue in the employ of the Company, and is willing to accept such
employment on the terms and conditions set forth in this Agreement.

     D. The Company and Executive wish to enter into an employment relationship pursuant to a
written employment agreement intended to supersede all other written and oral representations
regarding Executive’s employment with Company.

A G R E E M E N T

     NOW, THEREFORE, based on the foregoing recitals and in consideration of the commitments set
forth below, Executive and the Company agree as follows:

     1. Position, Duties, Responsibilities

          1.1. Position. The Company hereby employs Executive to render services to the Company
in the position of President and Chief Executive Officer, reporting directly to the Board of
Directors of the Company, for the period commencing on the Effective Date and ending on the third
anniversary of the Effective Date (the “Term”). The duties of this position shall include such
duties and responsibilities as are reasonably assigned to Executive by the Board of Directors,
including but not limited to those customarily performed by chief executive officers of similarly
situated corporations. Additionally, Executive shall serve in such other capacity or capacities as
the Board of Directors may from time to time prescribe. During his employment by the Company,
Executive shall, subject to Section 1.2, devote his full energies, interest, abilities and
productive time to the proper and efficient performance of his duties under this Agreement.

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          1.2. Other Activities. Except upon the prior written consent of the Board of
Directors of the Company, Executive will not (i) accept any other employment, (ii) receive any
compensation or other remuneration from USA Payments, USA Payment Systems, Infonox on the Web or
from Robert Cucinotta or Karim Maskatiya or any entity controlled by either one or both of them
other than amounts to be paid to Executive on the Effective Date pursuant to that certain
Promissory Note, dated March 22, 2005, issued by M&C International to Executive, (iii) engage,
directly or indirectly, in any other business activity (whether or not pursued for pecuniary
advantage) that is or may be in conflict with, or that might place Executive in a conflicting
position to that of, the Company. Notwithstanding the foregoing, Executive shall be permitted to
engage in occasional professional or charitable activities outside the scope of his employment with
the Company so long as such activities (A) do not conflict with the actual or proposed business of
the Company or any of its subsidiaries or affiliates, and (B) do not affect the performance of his
duties hereunder. In addition, subject to the prior written consent of the Board of Directors of
the Company and subject to Executive’s fiduciary duties to the Company, Executive shall be
permitted to serve as a director of other corporations provided that their businesses are not
competitive with the actual or proposed business of the Company or any of its subsidiaries or
affiliates and provided further that Executive’s service as a director of such other corporations
does not interfere with his performance of his duties hereunder. Any such prior written consent
may be subsequently revoked in the event that the Board of Directors determines, in good faith,
that Executive’s position as a director of any such other corporation has developed into a conflict
of interest.

          1.3. Proprietary Information. Executive recognizes that his employment with the
Company will involve contact with information of substantial value to the Company, which is not
generally known in the trade, and which gives the Company an advantage over its competitors who do
not know or use such information. As a condition precedent to Executive’s employment by the
Company, Executive agrees to execute and deliver to the Company, concurrent with his execution and
delivery of this Agreement, a copy of the “Employee Proprietary Information and Inventions
Agreement” attached hereto as Exhibit A.

     2. Compensation of Executive

          2.1. Base Salary. In consideration of the services to be rendered under this
Agreement, while employed by the Company, the Company shall pay Executive an initial base annual
salary of two hundred ninety-seven thousand five hundred dollars ($297,500), less standard
deductions and withholdings, payable in regular periodic payments in accordance with Company
payroll policy. Such salary shall be prorated for any partial month of employment on the basis of
a thirty (30) day fiscal month. Such base salary shall be subject to annual review by the Board of
Directors.

          2.2. Bonus. Executive also shall be eligible for such bonuses as may be awarded by
the Board of Directors in its sole discretion from time to time.

          2.3.
Stock Option. On January 8, 2005
pursuant to Global Cash Access Holdings, Inc.’s 2005 Stock Incentive
Plan (the “Stock Option Plan”), the Board of Directors of Global Cash Access Holdings, Inc. approved the grant to
Executive of an option to purchase one million four hundred forty-four

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thousand four hundred thirty
(1,444,430) shares of Global Cash Access Holdings, Inc.’s Class A Common Stock pursuant
to a Stock Option Agreement entered into as of January 8, 2005 by and between Executive and Global
Cash Access Holdings, Inc. (the “Stock Option Agreement”).

          2.4. Benefits. Executive shall be entitled to participate in the Company’s group
medical, dental, life insurance, 401(k), deferred compensation or other benefit plans and programs
on the same terms and conditions as other members of the Company’s senior executive management.
Executive shall be provided such perquisites of employment, including four (4) weeks of paid
vacation per year, and all paid holidays and sick leave as are provided to all other members of the
Company’s senior executive management. Executive shall be entitled to reimbursement of all
reasonable expenses incurred by Executive in the performance of his duties hereunder, in accordance
with the policies and procedures established by the Company from time to time, and as may be
amended from time to time.

     3. Employment At Will

     Company or Executive may terminate Executive’s employment with Company at any time for any
reason, including no reason at all, notwithstanding anything to the contrary contained in or
arising from any statements, policies, or practices of Company relating to the employment,
discipline, or termination of its employees. This at-will employment relationship cannot be
changed except in writing signed by a duly authorized officer of the Company other than Executive.
This Section 3 shall survive any termination or expiration of this Agreement.

     4. Termination of Employment

          4.1. Termination by Executive. Executive may terminate his employment upon notice to
the Company. In the event that Executive elects to terminate his employment other than for Good
Reason (as defined below), the Company shall pay Executive all base salary due and owing and all
other accrued but unpaid benefits (e.g., accrued vacation) through the last day actually worked and
thereafter the Company’s obligations under this Agreement shall terminate.

          4.2. Termination by the Company for Cause. In the event that the Company terminates
Executive’s employment for Cause, the Company shall pay Executive all base salary due and owing and
all other accrued but unpaid benefits (e.g., accrued vacation) through the last day actually worked
and thereafter the Company’s obligations under this Agreement shall terminate. For the purposes of
this Agreement, termination shall be for “Cause” if (i) Executive refuses or fails to act in
accordance with any lawful order or instruction of the Board of Directors, and such refusal or
failure to act has not been cured within thirty (30) days of notice of such disobedience, (ii)
Executive fails to devote reasonable attention and time during normal business hours to the
business affairs of the Company or Executive is reasonably determined by the Board of Directors to
have been unfit (e.g., denied any license, permit or qualification required by any gaming regulator
or found unsuitable by any gaming regulator) (other than as a result of an Incapacity), unavailable
for service (other than as a result of an Incapacity) or grossly negligent in connection with the
performance of his duties on behalf of the Company, which unfitness, unavailability or gross
negligence has not been cured within thirty

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(30) days of notice of the same; (iii) Executive is reasonably determined by the Board of
Directors to have committed a material act of dishonesty or willful misconduct or to have acted in
bad faith to the material detriment of the Company in connection with the performance of his duties
on behalf of the Company; (iv) Executive is convicted of a felony or other crime involving
dishonesty, breach of trust, moral turpitude or physical harm to any person, or (v) Executive
materially breaches any agreement with the Company which breach has not been cured within thirty
(30) days notice of the same. For purposes of this Agreement, the term “without Cause” shall mean
termination of Executive’s employment for reasons other than for “Cause.”

          4.3. Termination by the Company without Cause or Termination by Executive for Good
Reason. In the event that the Company terminates Executive’s employment without Cause or
Executive terminates his employment for Good Reason other than within twelve (12) months following
a Change of Control (as defined in Section 4.6), the Company shall pay Executive all base salary
due and owing and all other accrued but unpaid benefits (e.g., accrued vacation) through the last
day actually worked, and Executive shall be entitled to receive the severance payments and benefits
set forth below in this Section 4.3; provided, however, that such severance and benefits are
conditioned on Executive’s execution and non-revocation of a release agreement, the form of which
is attached hereto as Exhibit B, and thereafter the Company’s obligations under this
Agreement shall terminate. For the purposes of this Agreement, termination shall be for “Good
Reason” if (i) there is a material diminution of Executive’s responsibilities with the Company, or
a material change in the Executive’s reporting responsibilities or title, in each case without
Executive’s consent; (ii) there is a reduction by the Company in the Executive’s annual base salary
then in effect without Executive’s consent; or (iii) Executive’s principal work location is
relocated outside of the Las Vegas, Nevada metropolitan area without Executive’s consent.
Executive agrees that he may be required to travel from time to time as required by the Company’s
business and that such travel shall not constitute grounds for Executive to terminate his
employment for Good Reason.

               4.3.1. Pro Rata Target Bonus for Current Year. Within ten (10) days of the
termination of Executive’s employment, the Company shall pay to Executive, in a single lump-sum
payment, subject to standard deductions and withholdings, a bonus in the amount of two-thirds (2/3)
of his then-current base salary, pro rated based on the number of days actually elapsed through the
date of termination in the year in which such termination occurs (the “Target Bonus”).

               4.3.2. Base Salary Continuation. The Company shall continue to pay to Executive his
then-current base annual salary for a period of twelve
(12) months following his termination. Such salary continuation shall
be subject to standard deductions and withholdings and shall be payable in regular periodic
payments in accordance with Company payroll policy.

               4.3.3. Target Bonus on Base Salary Continuation. The Company shall pay to Executive,
subject to standard deductions and withholdings, a bonus in the amount of two-thirds (2/3) of his
then-current base salary, payable in equal installments concurrent with the salary continuation
payments pursuant to Section 4.3.2.

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               4.3.4. Vesting of Stock Option. Shares subject to the stock option described in
Section 2.3 shall vest in accordance with and subject to the terms of the Stock Option Agreement.

               4.3.5. Group Medical Coverage. The Company shall provide the Executive with continued
coverage for the remainder of the Term under the Company’s group health insurance plans in effect
upon termination of Executive’s employment without Cause or for Good Reason to the extent permitted
under the terms of such plans then in effect, at no cost to Executive. If such continued coverage
is not permitted under the terms of such plans, then the Company shall, subject to Executive making
an election under the Federal COBRA law within the time prescribed by law, reimburse Executive for
his payment of premiums for such benefits for the remainder of the Term. If COBRA or similar
benefits are not available by law during any portion of the remainder of the Term, then the Company
shall pay Executive each month during which COBRA or similar benefits are not available by law an
amount equal to the premium paid by Executive for the last month during which such COBRA or similar
benefits were available.

          4.4. Termination for Incapacity. In the event that Executive suffers an Incapacity
during the Term, the Company may elect to terminate Executive’s employment pursuant to this Section
4.4. In such event, the Company shall pay Executive all base salary due and owing and all other
accrued but unpaid benefits (e.g., accrued vacation) through the date on which an Incapacity is
determined to exist (the “Determination Date”). In addition, within ten (10) days of such
termination of Executive’s employment, the Company shall pay to Executive, in a single lump-sum
payment, subject to standard deductions and withholdings, a bonus in the amount of two-thirds (2/3)
of his then-current base salary, pro rated based on the number of days through the Determination
Date in the year in which such termination occurs. Thereafter the Company’s obligations under this
Agreement shall terminate; provided, however, that nothing

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contained in this Agreement shall limit Executive’s rights to payments or other benefits under
any long-term disability plans of the Company in which Executive participates, if any. For the
purposes of this Agreement, Executive shall be deemed to have suffered an “Incapacity” if Executive
shall, due to illness or mental or physical incapacity, be unable to perform the duties and
responsibilities required to be performed by him on behalf of the Company for a period of at least
one hundred eighty (180) days.

          4.5. Termination upon Death. In the event that Executive dies during the Term,
Executive’s employment shall be deemed to have terminated upon the date of death. In such event,
the Company shall pay Executive’s estate all base salary due and owing and all other accrued but
unpaid benefits (e.g., accrued vacation) through the date of death. In addition, within ten (10)
days of such termination of Executive’s employment, the Company shall pay to Executive’s estate, in
a single lump-sum payment, subject to standard deductions and withholdings, a bonus in the amount
of two-thirds (2/3) of his then-current base salary, pro rated based on the number of days actually
elapsed during the year in which such termination occurs. Thereafter the Company’s obligations
under this Agreement shall terminate; provided, however, that nothing contained in this Agreement
shall limit Executive’s estate’s or beneficiaries’ rights to payments or other benefits under any
life insurance plan or policy in which Executive participates or with respect to which Executive
has designated a beneficiary, if any.

          4.6. Termination following Change of Control. In the event that (i) the Company or
the resulting or surviving entity in a Change in Control (as defined in the Stock Option Plan) or
Corporate Transaction (as defined in the Stock Option Plan) (Change in Control and Corporate
Transaction collectively referred to herein as “Change of Control”) terminates Executive’s
employment without Cause within twelve (12) months following the occurrence of such Change of
Control, or (ii) there is a material diminution of Executive’s responsibilities with the Company or
the resulting or surviving entity in a Change of Control, or a material change in the Executive’s
reporting responsibilities or title, in each case without Executive’s consent and within twelve
(12) months following the occurrence of such Change of Control (which diminution or change the
parties hereby agree shall constitute a constructive termination of Executive’s employment without
Cause), then (A) the Company shall pay Executive all base salary due and owing and all other
accrued but unpaid benefits (e.g., accrued vacation) through the last day actually worked, and (B)
within ten (10) days of the termination of Executive’s employment, the Company shall pay to
Executive, in a single lump-sum payment, subject to standard deductions and withholdings, an amount
equal to two and ninety-nine one hundredths (2.99) times the sum of his then-current base salary
and the Target Bonus as severance; provided, however, that such payments and benefits are
conditioned on Executive’s execution and non-revocation of a release agreement, the form of which
is attached hereto as Exhibit B, and thereafter the Company’s or the resulting or surviving
entity’s obligations under this Agreement shall terminate. The parties’ obligations under this
Section 4.6 shall survive the expiration of this Agreement for a period of twelve (12) months and
ten (10) days following the occurrence of a Change of Control.

          4.7. Gross-Up Payment. Anything in this Agreement to the contrary notwithstanding, in
the event that it shall be determined that any payment or distribution by the Company to or for the
benefit of Executive, whether paid or payable or distributed or

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distributable pursuant to the terms of this Agreement or otherwise (the “Payment”), would
constitute an “excess parachute payment” within the meaning of Section 280G of the Internal Revenue
Code of 1986, as amended (the “Code”), Executive shall be paid an additional amount (the “Gross-Up
Payment”) such that the net amount retained by Executive after deduction of any excise tax imposed
under Section 4999 of the Code, and any federal, state and local income and employment tax and
excise tax imposed upon the Gross-Up Payment shall be equal to the Payment. For purposes of
determining the amount of the Gross-Up Payment, Executive shall be deemed to pay federal income tax
and employment taxes at the highest marginal rate of federal income and employment taxation in the
calendar year in which the Gross-Up Payment is to be made and state and local income taxes at the
highest marginal rate of taxation in the state and locality of Executive’s residence (or, if
greater, the state and locality in which Executive is required to file a nonresident income tax
return with respect to the Payment) on the date on which the Executive’s employment terminates, net
of the maximum reduction in federal income taxes that may be obtained from the deduction of such
state and local taxes.

               4.7.1. All determinations to be made under this Section 4.7 shall be made by a
nationally-recognized independent public accountant (the “Accounting Firm”), which firm shall
provide its determinations and any supporting calculations both to the Company and Executive within
thirty (30) days of each of a Change of Control and the termination of Executive’s employment. Any
such determination by the Accounting Firm shall be binding upon the Company and Executive. Within
five (5) days after the Accounting Firm’s determination, the Company shall pay (or cause to be
paid) or distribute (or cause to be distributed) to or for the benefit of Executive such amounts as
are then due to Executive pursuant to this Section 4.7.

               4.7.2. Executive shall notify the Company in writing of any claim by the Internal Revenue
Service or any other taxing authority that, if successful, would require the payment by the Company
of the Gross-Up Payment (taking into account any amounts theretofore already paid by the Company).
Such notification shall be given as soon as practicable but no later than ten (10) business days
after Executive knows of such claim and shall apprise the Company of the nature of such claim and
the date on which such claim is requested to be paid. Executive shall not pay such claim prior to
the expiration of the thirty (30) day period following the date on which he gives such notice to
the Company (or such shorter period ending on the date that any payment of taxes with respect to
such claim is due). If the Company notifies Executive in writing prior to the expiration of such
period that it desires to contest such claim, Executive shall:

                    (a) give the Company any information reasonably request by the Company relating to such claim;

                    (b) take such action in connection with contesting such claim as the Company shall reasonably
request in writing from time to time, including, without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company;

                    (c) cooperate with the Company in good faith in order to effectively contest such claim; and

7

 

                    (d) permit the Company to participate in any proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest and shall indemnify and
hold Executive harmless, on an after-tax basis, for any excise tax, income tax or employment tax,
including interest and penalties, with respect thereto, imposed as a result of such representation
and payment of costs and expenses. Without limiting the foregoing provisions of this Section
4.7.2, the Company shall control all proceedings taken in connection with such contest and, at its
sole option, may pursue or forego any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its sole option, either
direct Executive to pay the tax claimed and sue for a refund or contest the claim in any
permissible manner, and Executive agrees to prosecute such contest to a determination before any
administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as
the Company shall determine; provided further, however, that if the Company directs Executive to
pay such claim and sue for a refund the Company shall advance the amount of such payment to
Executive, on an interest-free basis and shall indemnify and hold Executive harmless, on an
after-tax basis, from any excise tax, income tax or employment tax, including interest or penalties
with respect thereto, imposed with respect to such advance or with respect to any imputed income
with respect to such advance; and provided further that any extension of the statute of limitations
relating to payment of taxes for the taxable year of Executive with respect to which such contested
amount is claim to be due is limited solely to such contested amount. Furthermore, the Company’s
control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be
payable hereunder and Executive shall be entitled to settle or contest, as the case may be, any
other issue raised by the Internal Revenue Service or any other taxing authority.

               4.7.3. If, after the receipt by Executive of an amount advanced by the Company pursuant to
this Section 4.7, Executive becomes entitled to receive any refund with respect to such claim,
Executive shall promptly pay to the Company the amount of such refund (together with any interest
paid or credited thereon after taxes applicable thereto). If, after the receipt by Executive of an
amount advanced by the Company pursuant to this Section 4.7, a determination is made that Executive
shall not be entitled to any refund with respect to such claim and the Company does not notify
Executive in writing of its intent to contest such denial of refund prior to the expiration of
thirty (30) days after such determination, then such advance shall be forgiven and shall not be
required to be repaid and the amount of such advance shall offset, to the extent thereof, the
amount of Gross-Up Payment required to be paid.

               4.7.4. All of the fees and expenses of the Accounting Firm in performing determinations
referred to in subsections 4.7.1 and 4.7.2 above shall be borne solely by the Company.

          4.8. No Other Compensation or Benefits. Executive acknowledges that except as
expressly provided in this Agreement, he will not be entitled to any additional compensation,
severance payments or benefits after the termination of his employment.

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     5. Termination Obligations

          5.1. Return of Company’s Property. Without in any way limiting Executive’s
obligations and the Company’s rights under the Employee Proprietary Information and Inventions
Agreement described in Section 1.3, Executive hereby acknowledges and agrees that all books,
manuals, records, reports, notes, contracts, lists, spreadsheets and other documents or materials,
or copies thereof, and equipment furnished to or prepared by Executive in the course of or incident
to Executive’s employment, belong to Company and shall be promptly returned to Company upon
termination of Executive’s employment.

          5.2. Cooperation in Pending Work. Following any termination of Executive’s
employment, Executive shall, at the Company’s request, reasonably cooperate with the Company in all
matters relating to the winding up of pending work on behalf of the Company and the orderly
transfer of work to other employees of the Company. Executive shall also cooperate, at the
Company’s request, in the defense of any action brought by any third party against the Company that
relates in any way to Executive’s acts or omissions while employed by the Company. In
consideration of Executive’s cooperation under this Section 5.2, the Company shall reimburse
Executive for his reasonable out-of-pocket costs incurred to cooperate and the Company shall pay
Executive an hourly consulting fee equal to the hourly rate that results from dividing his
then-current base annual salary by two thousand eighty (2,080).

          5.3. Resignation. Upon the termination of Executive’s employment for any reason,
Executive shall be deemed to have resigned from all offices and directorships then held with the
Company, GCA Holdings or any of their respective subsidiaries or affiliates. Executive agrees to
execute and delivery such documents or instruments as are reasonably requested by the Company, GCA
Holdings or any such subsidiary or affiliate to evidence such resignations.

          5.4. Survival. The representations and warranties contained herein and Executive’s
obligations under Sections 5, and 8 and under the Employee Proprietary Information and Inventions
Agreement shall survive termination of Executive’s employment and the expiration of this Agreement.

     6. Intentionally Omitted

     7. Intentionally Omitted

     8. Arbitration

          8.1. Agreement to Arbitrate Claims. The Company and Executive hereby agree that, to
the fullest extent permitted by law, any and all claims or controversies between them (or between
Executive and any present or former officer, director, agent, or employee of the Company or any
parent, subsidiary, or other entity affiliated with the Company) relating in any manner to the
employment or the termination of employment of Executive shall be resolved by final and binding
arbitration. Except as specifically provided herein, any arbitration proceeding shall be conducted
in accordance with the National Rules for the

9

 

Resolution of Employment Disputes of the American Arbitration Association (“the AAA Rules”).
Claims subject to arbitration shall include contract claims, tort claims, claims relating to
compensation and stock options, as well as claims based on any federal, state, or local law,
statute, or regulation, including but not limited to any claims arising under Title VII of the
Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities
Act, and the California Fair Employment and Housing Act. However, claims for unemployment
compensation, workers’ compensation, and claims under the National Labor Relations Act shall not be
subject to arbitration.

          8.2. Arbitrator. A neutral and impartial arbitrator shall be chosen by mutual
agreement of Executive and the Company; however, if Executive and the Company are unable to agree
upon an arbitrator within a reasonable period of time, then a neutral and impartial arbitrator
shall be appointed in accordance with the arbitrator nomination and selection procedure set forth
in the AAA Rules. The arbitrator shall prepare a written decision containing the essential
findings and conclusions on which the award is based so as to ensure meaningful judicial review of
the decision. The arbitrator shall apply the same substantive law, with the same statutes of
limitations and same remedies, that would apply if the claims were brought in a court of law. The
arbitrator shall have the authority to consider and decide pre-hearing motions, including
dispositive motions.

          8.3. Enforcement Actions. Either the Company or Executive may bring an action in
court to compel arbitration under this Agreement and to enforce an arbitration award. Except as
otherwise provided in this Agreement, neither party shall initiate or prosecute any lawsuit in any
way related to any arbitrable claim, including without limitation any claim as to the making,
existence, validity, or enforceability of the agreement to arbitrate. All arbitration hearings
under this Agreement shall be conducted in Las Vegas, Nevada.

          8.4. Exceptions. Nothing in this Agreement precludes a party from filing an
administrative charge before an agency that has jurisdiction over an arbitrable claim. In
addition, either party may, at its option, seek injunctive relief in a court of competent
jurisdiction for any claim or controversy arising out of or related to the unauthorized use,
disclosure, or misappropriation of the confidential and/or proprietary information of either party.
By way of example, the Company may choose to use the court system to seek injunctive relief to
prevent disclosure of its proprietary information or trade secrets; similarly, Executive may elect
to use the court system to seek injunctive relief to protect Executive’s own inventions or trade
secrets.

          8.5. Governing Law. The agreement to arbitrate under this Section 8 shall be governed
by the Uniform Arbitration Act of 2000 (Nevada Revised Statutes 38.206 et seq).
In ruling on procedural and substantive issues raised in the arbitration itself, the Arbitrator
shall in all cases apply the substantive law of the State of Nevada.

          8.6. Attorneys’ Fees. Each party shall pay its own costs and attorney’s fees, unless
a party prevails on a statutory claim, and the statute provides that the prevailing party is
entitled to payment of its attorneys’ fees. In that case, the arbitrator may award reasonable
attorneys’ fees and costs to the prevailing party as provided by law. The costs and fees of the
arbitrator shall be borne equally by Executive and the Company.

10

 

          8.7. Survival. The parties’ obligations under this Section 8 shall survive the
termination of Executive’s employment with the Company and the expiration of this Agreement.

          8.8. Acknowledgements. THE PARTIES UNDERSTAND AND AGREE THAT THIS SECTION 8
CONSTITUTES A WAIVER OF THEIR RIGHT TO A TRIAL BY JURY OF ANY CLAIMS OR CONTROVERSIES COVERED BY
THIS SECTION 8. THE PARTIES AGREE THAT NONE OF THOSE CLAIMS OR CONTROVERSIES SHALL BE RESOLVED BY
A JURY TRIAL. THE PARTIES FURTHER ACKNOWLEDGE THAT THEY HAVE BEEN GIVEN THE OPPORTUNITY TO DISCUSS
THIS SECTION 8 WITH THEIR LEGAL COUNSEL AND HAVE AVAILED THEMSELVES OF THAT OPPORTUNITY TO THE
EXTENT THEY WISH TO DO SO.

     9. Expiration of Term

     The terms of this Agreement are intended by the parties to govern Executive’s employment with
the Company during the Term. Upon the expiration of the Term, this Agreement shall terminate and
be of no further force or effect, except to the extent of provisions hereof which expressly survive
the expiration or termination of this Agreement.

     10. Entire Agreement

     The terms of this Agreement are intended by the parties to be the final and exclusive
expression of their agreement with respect to the employment of Executive by Company and may not be
contradicted by evidence of any prior or contemporaneous statements or agreements. Nothing herein
is intended to modify or supersede Executive’s obligations under that certain Noncompete Agreement
between Executive and the parent corporation of the Company made as
of May 14, 2004. The parties
further intend that this Agreement shall constitute the complete and exclusive statement of its
terms and that no extrinsic evidence whatsoever may be introduced in any judicial, administrative,
or other legal proceeding involving this Agreement. To the extent any provisions in this
Agreement are inconsistent with any provisions of the Exhibits, the provisions of the Exhibits
shall supersede and be controlling.

     11. Amendments, Waivers

     This Agreement may not be modified, amended, or terminated except by an instrument in writing,
signed by Executive and by a duly authorized representative of the Company other than Executive.
No failure to exercise and no delay in exercising any right, remedy, or power under this Agreement
shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy,
or power under this Agreement preclude any other or further exercise thereof, or the exercise of
any other right, remedy, or power provided herein or by law or in equity.

     12. Assignment; Successors and Assigns

     Executive agrees that Executive may not assign, sell, transfer, delegate or otherwise dispose
of, whether voluntarily or involuntarily, or by operation of law, any rights or obligations under
this Agreement, nor shall Executive’s rights be subject to encumbrance or the claims of

11

 

creditors. Any purported assignment, transfer, or delegation shall be null and void. Nothing
in this Agreement shall prevent the consolidation of the Company with, or its merger into, any
other corporation, or the sale by the Company of all or substantially all of its properties or
assets, or the assignment by the Company of this Agreement and the performance of its obligations
hereunder to any successor in interest.

     13. Entire Agreement; Severability; Enforcement

     This Agreement constitutes the entire agreement of the parties with respect to the subject
matter hereof and supersedes in its entirety all prior undertakings and agreements of the Company
and Executive with respect to the subject matter hereof; provided, however, that to the extent of
any conflict between the provisions of this Agreement, on the one hand, and either the Employee
Proprietary Information and Inventions Agreement attached hereto as Exhibit A or the Stock
Option Agreement attached hereto as Exhibit B, on the other hand, the provisions of such
Employee Proprietary Information and Inventions Agreement or Stock Option Agreement shall govern.
If any provision of this Agreement, or the application thereof to any person, place, or
circumstance, shall be held by a court of competent jurisdiction to be invalid, unenforceable, or
void, the remainder of this Agreement and such provisions as applied to other persons, places, and
circumstances shall remain in full force and effect. Such court shall have the authority to modify
or replace the invalid or unenforceable term or provision with one which most accurately represents
the parties’ intention with respect to the invalid or unenforceable term or provision.

     14. Governing Law

     The validity, interpretation, enforceability, and performance of this Agreement shall be
governed by and construed in accordance with the law of the State of Nevada.

     15. Acknowledgment

     The parties acknowledge (a) that they have consulted with or have had the opportunity to
consult with independent counsel of their own choice concerning this Agreement, and (b) that they
have read and understand the Agreement, are fully aware of its legal effect, and have entered into
it freely based on their own judgment and not on any representations or promises other than those
contained in this Agreement.

     16. Notices

     All notices or demands of any kind required or permitted to be given by the Company or
Executive under this Agreement shall be given in writing and shall be personally delivered (and
receipted for) or mailed by certified mail, return receipt requested, postage prepaid, addressed as
follows:

	 	 	 
	If to Company:

	 	Global Cash Access, Inc.
	

	 	Attn: Corporate Secretary
	

	 	3525 East Post Road, Suite 120
	

	 	Las Vegas, NV 89120

12

 

	 	 	 
	If to Executive:

	 	Kirk E. Sanford
	

	 	 
	

	 	 
	

	 	 
	

	 	 

Any such written notice shall be deemed received when personally delivered or three (3) days after
its deposit in the United States mail as specified above. Either party may change its address for
notices by giving notice to the other party in the name specified in this section.

     17. Representations and Warranties.

     Executive represents and warrants that he is not restricted or prohibited, contractually or
otherwise, from entering into and performing each of the terms and covenants contained in this
Agreement, and that his execution and performance of this Agreement will not violate or breach any
other agreements between Executive and any other person or entity.

     18. Counterparts

     This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, all of which together shall contribute one and the same instrument.

13

 

     IN WITNESS WHEREOF, each of the undersigned has executed this Employment Agreement as of the
date first set forth above, to be effective upon the Effective Date.

	 	 	 	 	 
	GLOBAL CASH ACCESS, INC.	 	KIRK E. SANFORD
	

	 	 	 	 
	By:

	 	/s/ Karim Maskatiya
	 	/s/ Kirk E. Sanford
	

	 	 
	 	 
	

	 	Karim Maskatiya
	 	Kirk E. Sanford
	

	 	Co-Chairman of the Board of Directors
	 	President and Chief Executive Officer

14

 

EXHIBIT A

EMPLOYEE PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

1

 

EXHIBIT B

RELEASE AND WAIVER OF CLAIMS

     In exchange for the severance payments and other benefits to which I would not otherwise be
entitled, I hereby furnish Global Cash Access, Inc., its parent corporation, Global Cash Access
Holdings, Inc. and each of their respective subsidiaries and affiliates (collectively, the
“Company”) with the following release and waiver.

     I hereby release, and forever discharge the Company, its officers, directors, agents,
employees, stockholders, attorneys, successors, assigns and affiliates, of and from any and all
claims, liabilities, demands, causes of action, costs, expenses, attorneys fees, damages,
indemnities and obligations of every kid and nature, in law, equity, or otherwise, known and
unknown, suspected and unsuspected, disclosed and undisclosed, arising at any time prior to and
including the date I sign this Release with respect to any claims relating to my employment and the
termination of my employment, including but not limited to: any and all such claims and demands
directly or indirectly arising out of or in any way connected with my employment with the Company
or the termination of that employment; claims or demands related to salary, bonuses, commissions,
stock, stock options, or any other ownership interests in the Company, vacation pay, fringe
benefits, expense reimbursements, sabbatical benefits, severance benefits, or any other form of
compensation; claims pursuant to any federal, state or local law or cause of action including, but
not limited to, the federal Civil Rights Act of 1964, as amended; the federal Age Discrimination
Act of 1990; the Delaware Fair Employment Practices Act, as amended; tort law; contract law;
wrongful discharge; discrimination; harassment; fraud; emotional distress; and breach of the
implied covenant of good faith and fair dealing, provided, however, that this Release shall not
apply to claims or causes of action for defamation, libel, or invasion of privacy.

     In granting the releases herein, I acknowledge that I understand that I am waiving any and all
rights and benefits conferred by the provisions of Section 1542 of the Civil Code of the State of
California and any similar provision of law of any other state or territory of the United States or
other jurisdiction to the following effect: “A general release does not extend to claims which the
creditor does not know or suspect to exist in his favor at the time of executing the release, which
if known by him must have materially affected his settlement with the debtor.” I hereby expressly
waive and relinquish all rights and benefits under that section and any law or legal principle of
similar effect in any jurisdiction with respect to the release of unknown and unsuspected claims
granted in this Agreement.

     I acknowledge that, among other rights, I am waiving and releasing any rights I may have under
ADEA, that this waiver and release is knowing and voluntary, and that the consideration given for
this waiver and release is in addition to anything of value to which I was already entitled. I
further acknowledge that I have been advised, as required by the Older Workers Benefit Protection
Act, that: (a) the waiver and release granted herein does not relate to claims which may arise
after this agreement is executed; (b) I have the right to consult with an attorney prior to
executing this agreement (although I may choose voluntarily not to do so); (c) I have twenty-one
(21) days from the date I receive this agreement, in which to consider this agreement (although I
may choose voluntarily to execute this agreement earlier); (d) I have seven (7) days
following the execution of this agreement to revoke my consent to the agreement; and (e) this
agreement shall not be effective until the seven (7) day revocation period has expired.

	 	 	 	 	 
	Date:
	 	 	 	 
	

	 	 
	 	 
	

	 	 	 	Kirk E. Sanford

1

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