Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Effective July 1, 2015, AGS, LLC (“AGS”), a subsidiary of AP Gaming Holdco, Inc. (the “Registrant”), entered into an employment agreement with Mauro Franic to serve as Chief Operating Officer of AGS (the “Employment Agreement”). Mr. Franic, age 44, most recently served as Chief Operating Officer of Cadillac Jack, Inc., which the Registrant acquired on May 29, 2015. Prior to his role as Chief Operating Officer at Cadillac Jack, Mr. Franic served as Vice President of Product Management and Marketing at Cadillac Jack. Mr. Franic joined Cadillac Jack in September 2006 as Director of Product Management, during which time he was instrumental in the development and introduction of new product lines in the US and Mexico. He brings more than eighteen years of product management experience to Cadillac Jack, having led business development for Exxon Mobil in Argentina and for Radiant Systems in the US, Spain, and the Caribbean. Mr. Franic is a graduate of Instituto Tecnologico de Buenos Aires, with a Bachelor of Arts degree and a Master of Arts degree, each in Industrial Engineering, as well as a Master of Business Administration from William E. Simon School of Business.
Pursuant to the Employment Agreement, Mr. Franic’s annual base salary shall be $300,000, and Mr. Franic shall be eligible to receive an annual performance-based bonus, with an annual target bonus opportunity equal to 75% of his base salary. He shall also be entitled to cash retention bonuses if he remains continuously employed with AGS or its affiliates through December 31, 2015, December 31, 2016 and July 1, 2017. If during the term of the Employment Agreement, AGS terminates Mr. Franic’s employment without “cause” (as defined in the Employment Agreement), then, subject to receiving a signed release of claims from Mr. Franic, AGS shall pay or provide Mr. Franic with severance equal to eighteen (18) months base salary. Pursuant to his Employment Agreement, Mr. Franic will also be subject to certain non-solicitation and non-competition restrictions for twenty-four (24) months post-termination of employment, as well as perpetual confidentiality and non-disparagement.
