Document:

ex10-6.htm

    EXHIBIT
10.6

    WMS
GAMING INC.

    800 South
Northpoint Boulevard

    Waukegan,
IL 60085

    

    

    July 1,
2008

    

     

    Mr. Larry
J. Pacey

    c/o WMS
GAMING INC.

    800 South
Northpoint Boulevard

    Waukegan,
IL 60085

    

    

    Dear
Larry:

     

    Reference
is made to the Employment Agreement between you and WMS Gaming Inc., dated
September 7, 2005, as amended (the “Employment Agreement”).  The
Employment Agreement is hereby further amended as follows:

    

    1.           The
last sentence of Paragraph 1 of the Employment Agreement is deleted and replaced
in its entirety with “Employee’s title shall be Executive Vice President, Global
Products & Chief Innovation Officer, reporting to the President, which title
and reporting may change at any time in the sole discretion of
Management.

    

    2.           Section
3 of the Employment Agreement is hereby amended by adding the following sentence
at the end thereof:

    

    “To the
extent that any severance payments required to be made pursuant to the preceding
sentence do not qualify for either the “short-term deferral” exception to
Section 409A set forth in Treasury Regulations Section 1.409A-1(b)(4) or the
involuntary separation pay exception to Section 409A set forth in Treasury
Regulations Section 1.409A-1(b)(9)(iii), then such payments (i) may not be made
before the date that is six months after the date the Executive’s employment is
terminated, and (ii) may not be accelerated except to the extent an acceleration
of payment may be permitted under final regulations issued by the Internal
Revenue Service under Code Section 409A.”

    

    3.           The
first sentence of Paragraph 4.1 of the Employment Agreement is deleted and
replaced in its entirety with “The Corporation shall pay to Executive a base
salary at the rate of $500,000.

    

    4.           Section
4.2 of the Employment Agreement is hereby amended by adding the following
sentence at the end thereof:

     

    “Any
bonus payable under this Section 4.2 shall be paid no later than the 15th day of
the third month following the end of the fiscal year for which the bonus is
payable.”

    

    5.           Section
5 of the Employment Agreement is hereby amended by adding the following sentence
thereto:

    

    “The
amount of expenses eligible for reimbursement in a calendar year shall not
affect the expenses eligible for reimbursement in any other calendar
year.”

    

    6.           Section
12.1 of the Employment Agreement is hereby amended by adding the following
sentence at the end thereof:

    

    “To the
extent that any severance payments required to be made pursuant to the preceding
sentence do not qualify for either the “short-term deferral” exception to
Section 409A set forth in Treasury Regulations Section 1.409A-1(b)(4) or the
involuntary separation pay exception to Section 409A set forth in Treasury
Regulations Section 1.409A-1(b)(9)(iii), then such payments (i) may not be made
before the date that is six months after the date the Executive’s employment is
terminated, and (ii) may not be accelerated except to the extent an acceleration
of payment may be permitted under final regulations issued by the Internal
Revenue Service under Code Section 409A.”

    

    7.           The
amendments set forth in this letter agreement shall be effective as of July 1,
2008, notwithstanding any earlier date of execution of this letter agreement by
the parties.  Except as expressly modified herein, the terms and
conditions of the Employment Agreement shall remain in full force and
effect.

    

    Please
indicate your agreement to the foregoing by signing this letter in the place
provided below.

     

    
      	
               

            	
              Very
      truly yours,

            

    

     

     

    
      	
               
      

            	
              WMS
      INDUSTRIES INC.

            

    

     

     

    
      	
               

            	
              By:  /s/ Brian
      R. Gamache

            

    

    
      	
               
      

            	
              Brian
      R. Gamache

            

    

    
      	
               
      

            	
              Chief
      Executive Officer

            

    

    

    Accepted
and Agreed to:

    

    /s/ Larry J.
Pacey

    Larry J.
Paceyex10-7.htm

    EXHIBIT
10.7

    

    DEFERRED
COMPENSATION AGREEMENT

    

    

    THIS DEFERRED COMPENSATION
AGREEMENT (the "Agreement") is entered into this 27th day of January,
2007, by and between WMS INDUSTRIES, INC., a Delaware corporation (the
"Employer") and Larry J. Pacey("Executive") and shall be effective as of
February 1, 2007 (the “Effective Date”).

    

    WHEREAS, the Executive is
employed by the Employer as its Senior Vice President – Product Development
pursuant to an Employment Agreement dated September 7, 2005 (the "Employment
Agreement"); and

    

    WHEREAS, the Employer
maintains the WMS Industries, Inc. Nonqualified Deferred Compensation Plan (the
"Nonqualified Plan") for the benefit of certain of its management and highly
compensated employees; and

    

    WHEREAS, the Employer desires
to retain the services of the Executive for an extended period of time and is
willing to provide the Executive with additional Nonqualified Plan benefits in
order to encourage the Executive to remain in the employ of the
Employer;

    

    NOW, THEREFORE, the parties
agree as follows:

    

    1.           Employer Contributions
Account.  The Employer agrees that Executive shall be eligible
to receive Employer Contributions to his Account under the Nonqualified Plan,
which Employer Contributions shall be subject to the terms and conditions set
forth in this Agreement and the Nonqualified Plan.  Employer
Contributions made on Executive's behalf shall be credited to a subaccount
established under Executive's Account under the Nonqualified Plan, which
subaccount will be known as the "Employer Contributions Account."

    

    2.           Contributions to Employer
Contributions Account.  Subject to the provisions of Section 6
below, the Employer will credit Executive's Account under the Nonqualified Plan
with Employer Contributions in such amounts and at such times as the Employer,
in its sole discretion, shall determine, provided that the aggregate
contributions for each Contract Year (as defined below) will equal One Hundred
Thousand Dollars ($100,000).  For purposes of this Agreement, the term
“Contract Year” means each 12 month period commencing on the Effective Date or
any anniversary thereof during the term of the Agreement.

    

    3.           Investment of Employer
Contributions.  The balance in Executive’s Employer
Contributions Account shall be invested as directed by Executive in accordance
with the terms of the Nonqualified Plan.

    

    4.           Vesting.  Subject
to the provisions of Section 6 below, Executive shall not vest in any portion of
his Employer Contributions Account unless he remains continuously employed by
the
Employer until the tenth anniversary of the Effective Date (the "Vesting Date"),
at which time he shall be 100 percent vested in his Employer Contributions
Account.

    

    5.           No Guaranteed Account
Balance.  Executive acknowledges that Employer does not
guarantee the balance that will available in Executive’s Employer Contributions
Account on the Vesting Date or on any other date.

    

    6.           Impact of Involuntary
Termination of Employment.  In the event Executive's employment
with the Employer shall terminate prior to the Vesting Date as a result of
death, Disability (as defined below) or termination of employment by the
Employer for reasons other than Cause (as defined in the Nonqualified Plan),
Executive shall become 100 percent vested in his Employer Contributions Account
on the date of such termination of employment (the "Early Vesting Date") and
will be entitled to receive the full balance then available in the Employer
Contributions Account.  In event of the occurrence of an Early Vesting
Date, Employer shall have no obligation to continue making contributions to such
account provided that, for the Contract Year in which the Early Vesting Date
occurs, Employer shall have contributed at least a pro rata amount of the
contribution amount specified in Section 2 for the Contract Year in which the
Early Vesting Date occurs. For purposes of this Section 6, the term "Disability"
shall mean the absence of Executive from Executive’s duties with the Employer on
a full-time basis for 90 consecutive business days, or for six months in any
12-month period, as a result of incapacity due to mental or physical illness
which is determined to be total and permanent by a physician selected by the
Employer or its insurers and acceptable to Executive or Executive’s legal
representative.

    

    7.           Distribution of Employer
Contributions Account.  Executive's Employer Contributions
Account shall be distributed to him following the Vesting Date or Early Vesting
Date at the time and in the form elected by Executive pursuant to the terms of
the Nonqualified Plan.

    

    8.           Entire
Understanding.  This Agreement contains the entire
understanding of the parties with respect to the subject matter hereof and
supersedes any and all prior statements, representations or negotiations with
respect to the subject matter hereof.  Notwithstanding the foregoing,
(i) this Agreement shall not supersede any provisions of the Employment
Agreement and (ii) all applicable terms of the Nonqualified Plan shall apply to
Executive's Employer Contributions Credit Account.

    

    9.           Governing
Law.  To the extent not preempted by ERISA, this Agreement
shall be governed by and construed in accordance with the substantive law of the
State of Illinois.

    

    10.           Amendment.  This
Agreement may be amended only by an instrument in writing signed by the parties
hereto.

     

    IN WITNESS WHEREOF, the
Employer has caused this Agreement to be executed by its duly authorized
officer, and Executive has signed this Agreement, all as of the date first above
written.

    

    WMS
INDUSTRIES, INC.

    

    By: /s/ Scott D.
Schweinfurth

    Its:
Executive Vice President and Chief

    Financial
Officer and Treasurer

    

    EXECUTIVE

    

    /s/ Larry J.
Pacey

    Larry J.
Pacey

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