Newgioco Group, Inc (OTCMKTS:EMGL) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On December 31, 2018, effective as of September 13, 2018 (the “Effective Date”), Newgioco Group, Inc. (the “Company”) entered into an employment agreement (the “Agreement”) with Michele Ciavarella, to which Mr. Ciavarella has agreed to continue to serve as Chief Executive Officer of the Company. Michele Ciavarella has served as our Chief Executive Officer since June 2011. The Agreement terminates on September 30, 2023, unless earlier terminated to the terms of the Agreement (the “Initial Term”). Upon the expiration of the Initial Term, the term of Mr. Ciavarella’s employment shall automatically be extended for successive one-year periods (the “Successive Term”) unless either party provides the other party with written notice not less than 60 days prior to the end of any Successive Term. to the terms of the Agreement, Mr. Ciavarella shall receive a base salary of $395,000 which base salary may be increased by the Company’s board of directors (the “Board”), in its sole discretion. In addition, Mr. Ciavarella shall be eligible to receive a bonus equal up to 75% of his base salary (the “Targeted Bonus”) and receive awards to the Company’s equity incentive plan, as determined by the Board. Mr. Ciavarella shall also be eligible to participate in pension, medical, retirement and other benefit plans which are available to the Company’s senior officers and directors.
The Company may terminate Mr. Ciavarella’s employment at any time without Cause (as defined in the Agreement) for any reason or no reason and Mr. Ciavarella may terminate his employment at any time for Good Reason (as defined in the Agreement). In the event Mr. Ciavarella’s employment is terminated by the Company without Cause (as defined in the Agreement) or by Mr. Ciavarella for Good Reason (as defined in the Agreement), Mr. Ciavarella shall be entitled to receive the following: (i) an amount equal to one times the sum of (A) Mr. Ciavarella’s then base salary and (B) an amount equal to the highest annual incentive compensation paid to Mr. Ciavarella during the two most recently completed fiscal years (but not more than the Bonus for the-then current fiscal year) payable over a period of twelve months; (ii) in lieu of any incentive compensation for the year in which such termination occurs, payment of an amount equal to (A) the Targeted Bonus (if any) which would have been payable to Mr. Ciavarella had Mr. Ciavarella remained in employment with the Company during the entire year in which such termination occurred, multiplied by (B) a fraction the numerator of which is the number of days Mr. Ciavarella was employed in the year in which such termination occurs and the denominator of which is the total number of days in the year in which such termination occurs.; (iii) reimbursement of expenses properly incurred by Mr. Ciavarella; (iv) if Mr. Ciavarella elects to continue medical coverage under the Company’s group health plan, an amount equal to the monthly premiums for such coverage less the amount of employee contributions payable until the earlier of twelve months and the date Mr. Ciavarella becomes eligible to receive such coverage under a subsequent employer’s insurance plan; and (v) except as otherwise provided at the time of grant, all outstanding stock options and restricted stock units issued to Mr. Ciavarella shall vest in full; provided, however, such vested stock options and restricted stock units shall not be exercisable after the earlier of (A) thirty days after the termination of Mr. Ciavarella’s employment and (B) the expiration date of such awards; provided further that, in the event Mr. Ciavarella’s employment is terminated prior to the compensation committee (the “Committee”) determining the satisfaction of performance criteria applicable with respect to the issuance of any such award, such award will not vest unless and until such determination has been made by the Committee. In the event Mr. Ciavarella’s employment is terminated by the Company without Cause (as defined in the Agreement) or by Mr. Ciavarella for Good Reason (as defined in the Agreement) and such termination occurs upon, or within two (2) years following, a Change in Control (as defined in the Agreement), Mr. Ciavarella shall be entitled to receive the payments described in the foregoing sentence multiplied by three (3) and such amount shall be payable over a period of twenty-four (24) months after termination.
Upon termination by the Company of Mr. Ciavarella’s employment for Cause (as defined in the Agreement), Mr. Ciavarella shall be entitled to receive the following: (i) accrued but unpaid base salary through the termination date and (ii) reimbursement of expenses properly incurred by Mr. Ciavarella payable on the termination date. In the event Mr. Ciavarella’s employment is terminated for death or Disability (as defined in the Agreement), Mr. Ciavarella shall be entitled to receive the following: (i) accrued but unpaid base salary through the termination date, (ii) reimbursement of expenses properly incurred by Mr. Ciavarella and (iii) one times Mr. Ciavarella’s then base salary payable within 45 days of the termination date. In the event Mr. Ciavarella terminates his employment for any reason other than Good Reason (as defined in the Agreement), Mr. Ciavarella shall be entitled to receive the following: (i) accrued but unpaid base salary through the termination date and (ii) reimbursement of expenses properly incurred by Mr. Ciavarella payable on the termination date. To be eligible to receive any of the severance payments upon termination of Mr. Ciavarella’s employment by the Company without Cause (as defined in the Agreement) or by Mr. Ciavarella for Good Reason (as defined in the Agreement), Mr. Ciavarella must execute a release of claims in favor of the Company as set forth in the Agreement.
The foregoing description is a summary only, does not purport to set forth the complete terms of the Agreement, and is qualified in its entirety by reference to the Agreement, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is hereby incorporated by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
10.1Employment Agreement between the Company and Michele Ciavarella dated December 31, 2018
Newgioco Group, Inc. Exhibit
EX-10.1 3 exhibit_10-1.htm EMPLOYMENT AGREEMENT BETWEEN THE COMPANY AND MICHELE CIAVARELLA DATED DECEMBER 31,…
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About Newgioco Group, Inc (OTCMKTS:EMGL)
Newgioco Group, Inc., formerly Empire Global Corp. is a licensed gaming operator. The Company offers Web-based and land-based gaming services in Italy. The Company’s product offering includes a range of online and offline lottery and casino gaming, as well as sports betting and online poker. The Company’s Website and shops offer gaming line-up, including sports betting, online casino, poker, bingo, skilled and interactive games, virtual sports and horse racing. Its sports betting offer both pre-live and live in-game betting opportunities for a range of sports. Its online casino offers casino games, live casino, poker, bingo and interactive skilled games. The Company offers poker games, such as Texas Hold’em and Omaha in both cash and tournament format. The Company has approximately 1,070 Web-based betting shops, over three corner and approximately two agency locations operating under its license.