SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported):
OCTOBER 1, 2005
EZCORP, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-19424 74-2540145
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation) Identification No.)
1901 CAPITAL PARKWAY
AUSTIN, TEXAS 78746
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(512) 314-3400
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
INCENTIVE COMPENSATION PROGRAM FOR SENIOR MANAGEMENT TEAM
On October 1, 2005, EZCORP, Inc. ("EZCORP") adopted and approved a Fiscal Year
2006 Incentive Compensation Program (the "ICP"). The ICP is an annual plan for
EZCORP's officers and certain key employees, including its executive officers
(as defined in the Securities and Exchange Commission's rules)(collectively the
"Participants"). The ICP provides each of the Participants an opportunity to
receive an annual incentive cash bonus based on EZCORP's financial performance
as a company and the Participant's personal performance during fiscal 2006. A
Compensatory Advisory Group comprised of the President and Chief Executive
Officer, the Senior Vice President of Administration and the Senior Vice
President and Chief Financial Officer of EZCORP administers the ICP. The
Compensatory Advisory Group established the bonus opportunities and the
performance goals and will also determine performance and award bonuses, if any,
pursuant to the terms of the ICP. The Compensation Committee of the Board of
Directors of EZCORP reviewed and approved the ICP including the Participants,
the performance goals, and potential incentive compensation to be received by
the Participants.
The key terms of the ICP and the criteria for awarding bonuses under the ICP for
the fiscal year ending September 30, 2006 are:
- Each Participant's target bonus is determined as a percentage of base
pay based on the Financial Performance Component and Personal Component
discussed below. The percentages vary by position;
- EZCORP's financial performance during fiscal 2006, measured by its net
income which may be adjusted for any special items, charges or credits
pursuant to the terms of the ICP (the "Financial Performance
Component"). The Financial Performance Component payout ranges from 0%
to 150% of the Financial Performance Component target bonus for each
Participant; and
- The Participant's performance during fiscal 2006, in accomplishing
defined personal (financial or non-financial) objectives, which are
intended to enhance and support EZCORP's strategic initiatives (the
"Personal Component"). The Personal Component payout ranges from 0% to a
maximum of 100% of the Personal Component target bonus for each
Participant. No Personal Component payout is allowed unless EZCORP's net
income is at least 90% of the target net income (as described above).
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
EZCORP, INC.
(Registrant)
Date: October 6, 2005 By: /s/ Daniel N. Tonissen
-----------------------------------
(Signature)
Senior Vice President, Chief
Financial Officer, and Director