Document:

evri_Ex10-47

		
			Exhibit 10.47
		

		
			 
		

		
			FIRST AMENDMENT TO EMPLOYMENT AGREEMENT
		

		
			 
		

		
			This First Amendment to Employment Agreement (the "Amendment"), is made as of this 3rd day of January 2017 (the "Effective Date"), by and between Everi Payments Inc., a Delaware corporation formerly known as Global Cash Access, Inc. (the "Company") and wholly-owned subsidiary of Everi Holdings Inc., a Delaware corporation formerly known as Global Cash Access Holdings, Inc. ("Everi Holdings"), and David Lucchese ("Executive"). This Amendment amends that certain Employment Agreement, dated August 5, 2014, by and between the Company and the Executive (the "Agreement"). Capitalized terms used in this Amendment and not defined have the meanings given them in the Agreement.
		

		
			 
		

		
			R E C I T A L S
		

		
			 
		

		
			A.Whereas, the Company and Executive desire to amend the Agreement.
		

		
			 
		

		
			B.The Company and Executive therefore wish to enter into this Amendment regarding Executive's employment with Company.
		

		
			 
		

		
			AMENDMENT
		

		
			 
		

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

		
			 
		

		
			1.          Section 1.1 of the Agreement shall be deleted in its entirety and replaced with the following:
		

		
			 
		

		
			1.1 Position, Duties, Responsibilities
		

		
			 
		

		
			"1.1Position. The Company hereby employs Executive to render services to the Company in the position of Executive Vice President, Digital and Interactive Business Leader, reporting directly to the Executive Vice President and Games Business Leader. The duties of this position shall include such duties and responsibilities as are reasonably assigned to Executive by the Games Business Leader. Executive agrees to serve in a similar capacity for the benefit of Everi Holdings and any of the Company's direct or indirect, wholly-owned or partially-owned subsidiaries or Everi Holdings' affiliates. Additionally, Executive shall serve in such other capacity or capacities as the Games Business Leader may from time to time reasonably and lawfully prescribe. The Company and Executive further agree that a written job description shall be created for Executive's position within a reasonable period following final execution of this Agreement. The Company and Executive further agree that, once complete and agreed upon by the parties, said description shall be incorporated into this Agreement by reference and shall govern Executive's duties and responsibilities owed to the Company. During Executive's employment by the Company, Executive shall, subject to Section 1.2, devote Executive's full energies, interest, abilities and productive time to the proper and efficient performance of Executive's duties under this Agreement. Executive shall be deemed an "Executive Officer" for purposes of indemnification by the Company pursuant to Article XI of the Company's bylaws."
		

		
			 
		

		
			2.          For purposes of Section 2.1 of the Agreement, the Company and Executive agree that, beginning as of the Effective Date, the Company shall pay Executive a base salary at the rate of
		

		
			 
		

		
			
		

		
			

		 

 

		

		
			Three Hundred Seventy-Five Thousand Dollars ($375,000) per year, less required deductions for state and federal withholding tax, social security and all other employment taxes and payroll deductions, payable in regular periodic payments in accordance with Company payroll policy. Section 2.1 shall otherwise remain in full force and effect.
		

		
			 
		

		
			3.          Section 4.3 of the Agreement shall be amended to include a final sentence that reads as follows:
		

		
			 
		

		
			"If Executive provides not less than ninety (90) days' prior written notice of his intent to voluntarily resign from the Company as of a date that is on or prior to December 31, 2017, then, upon the effective date of his resignation following such ninety (90) day period, his resignation shall be deemed a Termination by Executive for Good Reason and he shall be entitled to the severance payments and benefits provided in the event of a Termination by Executive for Good Reason as set forth in Sections 4.3.1-4.3.4."
		

		
			 
		

		
			4.          Section 4.3.1 of the Agreement shall be amended by deleting the first sentence thereof and replacing such first sentence with the following:
		

		
			 
		

		
			"The Company shall continue to pay Executive's base salary at the then-current base annual salary rate of Executive (determined prior to any reduction constituting a condition giving rise to Good Reason) for a period of twelve (12) months following the date of termination of Executive's employment (the "Salary Continuation Period"); provided, that if Executive voluntarily resigns his employment with the Company during the fiscal year ending December 31, 2017 in accordance with the last sentence of Section 4.3 and, pursuant to the last sentence of Section 4.3, such voluntary resignation is treated as a Termination by Executive for Good Reason, then the Company shall continue to pay Executive's base salary for the Salary Continuation Period at the annual salary rate of $425,000."
		

		
			 
		

		
			5.           Section 4.3.2 of the Agreement shall be deleted in its entirety and replaced with the following:
		

		
			 
		

		
			"4.3.2. Target Bonus.
		

		
			 
		

		
			(a)In the event that the termination of Executive's employment occurs after the first anniversary of the Effective Date of the Agreement, the Company shall also pay to Executive, subject to standard deductions and withholdings, an additional severance benefit in an amount equal to one-hundred (100%) of Executive's then-current target bonus for the calendar year in which the termination occurred, payable in substantially equal installments concurrent with the salary continuation payments pursuant to Section 4.3.1 (including a catch-up payment as described therein); provided, that if Executive voluntarily resigns his employment with the Company during the fiscal year ending December 31, 2017 in accordance with the last sentence of Section 4.3 and, pursuant to the last sentence of Section 4.3, such voluntary resignation is treated as a Termination by Executive for Good Reason, then the bonus payable by the Company under this Section 4.3.2(a) shall be based upon a base salary of $425,000.
		

		
			 
		

		
			(b)In addition to the benefits provided under Section 4.3.2(a) above, if Executive voluntarily resigns his employment with the Company during the fiscal year
		

		
			 
		

		
			
		

		
			

		 

 

		

		
			ending December 31, 2017 in accordance with the last sentence of Section 4.3 and, pursuant to the last sentence of Section 4.3, such voluntary resignation is treated as a Termination by Executive for Good Reason, then Executive shall be entitled to receive a bonus (the "Pro Rata Bonus") equal to Executive's base salary at the effective date of termination multiplied by a percentage equal to the product of (i) the average percentage of base salary earned by and paid to the other senior executives of the Company as a group as an incentive bonus for the fiscal year ending December 31, 2017, as calculated by the Company pursuant to its 2017 cash incentive bonus plan, multiplied by (ii) a fraction, the numerator of which is the number of days elapsed between January 1, 2017 and the effective date of Executive's voluntary resignation, and the denominator of which is 365.  For the avoidance of doubt, "the average percentage of base salary" shall be determined by adding together the percentages earned by each person in the senior executive group and dividing by the number of persons in the senior executive group, such that, if there are five other members of the senior executive group who receive bonuses equal to 40%, 50%, 60%, 70% and 80% of base salary, then the average percentage of base salary would be 60%. For example, if, pursuant to the last sentence of Section 4.3, Executive provides written notice on March 1, 2017 of his intent to voluntarily resign from the Company effective May 31, 2017, and the other senior executives of the Company later are determined to have earned bonuses for the fiscal year ending December 31, 2017 equal to an average of 60% of base salary, then Executive shall be entitled to receive a Pro Rata Bonus equal to Executive's base salary at the effective date of termination multiplied by 24.82%, such percentage being determined as follows: (A) Executive's base salary at the effective date of termination, multiplied by (B) 60%, multiplied by (C) 151/365. Any such Pro Rata Bonus payable pursuant to the foregoing, if any, shall be paid in cash when the other senior executives of the Company are paid their annual bonuses for 2017, and on or before March 15, 2018.
		

		
			 
		

		
			(c)In addition to the benefits provided under Section 4.3.2(a) and Section 4.3.2(b) above, if Executive voluntarily resigns his employment with the Company during the fiscal year ending December 31, 2017 in accordance with the last sentence of Section 4.3 and, pursuant to the last sentence of Section 4.3, such voluntary resignation is treated as a Termination by Executive for Good Reason, then the Company shall pay to Executive an amount equal to $75,000, as a reimbursement for moving expenses incurred by Executive, such amount to be paid in a single lump sum on the first regular payroll date of the Company following the Release Deadline (as defined in Section 4.8) and to be subject to standard deductions and withholdings."
		

		
			 
		

		
			6.          Section 7.2 of the Agreement shall be amended by deleting the second and third sentences thereof and replacing such sentences with the following:
		

		
			 
		

		
			"For the avoidance of doubt, the foregoing shall not prohibit Executive from (a) being employed by or engaged as a consultant by, or having any ownership interest in, or participating in the financing, operation, management or control of, any of the following companies (or their respective subsidiaries and successors): Scientific Games Corporation, International Game Technology or Novomatic AG, or (b) engaging in, owning an interest in, or participating in any business that processes credit card, debit card or automated teller machine transactions originated from outside of gaming establishments, unless the Company has expanded its operations to 
		

		
			 
		

		
			
		

		
			

		 

 

		

		
			encompass such activities at the time of termination. For purposes of this Agreement, the "Noncompete Term" shall be the period of one (I) year after the termination of Executive's employment hereunder."
		

		
			 
		

		
			7.          Except as otherwise set forth specifically in this Amendment, the Agreement shall remain in full force and effect.
		

		
			 
		

		
			 
		

		
			(Signatures on following page)
		

		
			 
		

		
			
		

		
			

		 

 

		

		
			IN WITNESS WHEREOF, each of the undersigned has executed this Amendment as of the date first set forth above.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						EVERI PAYMENTS INC.

					
					
						   

					
					
						EXECUTIVE

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						By:   

					
					
						/s/ Michael D. Rumbolz

					
					
						 

					
					
						/s/ David Lucchese

				
	
					
						 

					
					
						By: Michael D. Rumbolz, President and

					
					
						 

					
					
						David Lucchese

				
	
					
						 

					
					
						Chief Executive OfficerExhibit

Exhibit 10.9

SYNALLOY CORPORATION
2016 Executive Incentive Plan

		
	1.
	Purpose. This Executive Incentive Plan (the “Incentive Plan”) is intended to provide key executive employees of Synalloy Corporation (the “Company”, which term shall include Synalloy Corporation and any of its affiliates or subsidiaries) the opportunity to participate in the Company’s profitability, future prosperity and growth. The purpose of the Incentive Plan is to provide short and Long Term incentive for gain through outstanding service to the Company and its shareholders, and to assist in attracting and retaining executives of ability and initiative.

		
	2.
	Administration. The Incentive Plan shall be administered by the Company’s Compensation & Long Term Incentive Committee (the “Committee”). The same restrictions set forth in the Company’s 2015 Stock Awards Plan (the “Restricted Stock Plan”), shall also apply under this Incentive Plan. To the extent this Incentive Plan differs from or is inconsistent with the Restricted Stock Plan, the terms and provisions of the Restricted Stock Plan shall govern. The Committee shall have complete authority and discretion to (1) interpret all provisions of this Incentive Plan consistent with law and the Restricted Stock Plan, (2) to adopt, amend, and rescind general and special rules and regulations for its administration, and (3) to make all other determinations necessary or advisable for the administration of the Incentive Plan. No member of the Committee shall be liable for any action or determination in respect thereto, if made in good faith, and shall be entitled to indemnification by the Company with respect to all matters arising from his or her service on the Committee to the fullest extent allowable under the Company’s charter documents and applicable law.

		
	3.
	Eligibility. Any salaried employee of the Company who in the judgment of the Committee occupies a management position in which his or her efforts contribute to the profit and growth of the Company may be eligible to participate in the Incentive Plan. The named participants to this Incentive Plan shall be recommended by the division Presidents and the CEO, and approved by the Committee. The key metric used to measure management performance in a particular division or the Company as a whole, as the case may be, is “Adjusted EBITDA” defined as operating income before interest, change in fair value of interest rate swap, income taxes, depreciation and amortization, excluding inventory profits and losses, acquisition costs and costs associated with raising capital. The Adjusted EBITDA Target described herein and reflected on Exhibit A are derived from the Company’s annual budget approved by the Company’s Board of Directors and are exclusive of and calculated prior to allocation of the cash and restricted stock incentives payable to the executives participating in the Incentive Plan.  Exhibit A to this Incentive Plan, as may be amended from time to time by the Committee, sets forth for each named participant, his or her Base Salary, the Short Term Cash Incentive and the Long Term  Incentive (both as a percentage of Base Salary). 

		
	4.
	Short Term Cash Incentive.

		
	A.
	Components: The Short Term Cash Incentive has two components: an annual Adjusted EBITDA Performance metric (70% of total) and an annual goal achievement metric (30% of total).  The table below illustrates Total Short Term Cash Incentive as a percentage of base salary when both components are achieved. Exhibit A details each Executive, their corresponding level, Adjusted EBITDA metrics and annual goals.

	
				
	Total Short Term Cash Incentive

	Incentive as a % of Base Salary
	Threshold Performance
	Target 
Performance
	Maximum Performance

	Level 1
	60%
	65%
	100%

	Level 2
	42%
	65%
	85%

	Level 3
	35%
	50%
	72%

	Level 4
	30%
	50%
	60%

		
	A.
	Adjusted EBITDA Performance Metric. At the beginning of each year, the Company’s Board of Directors will approve the upcoming year’s budget that shall include the Adjusted EBITDA target for each division and for the Company as a whole. Threshold and Maximum Adjusted EBITDA are calculated as a percentage of the Target Adjusted EBITDA as approved by the Committee. The Adjusted EBITDA component of the Short Term Cash Incentive will be based on a percentage of Base Salary for each Executive Level as applicable (see chart below).

	
				
	Adjusted EBITDA Component of the Short Term Cash Incentive

	Incentive as a % of Base Salary
	Threshold Adjusted EBITDA Performance
	Target Adjusted EBITDA Performance
	Maximum Adjusted EBITDA Performance

	Level 1
	42.0%
	45.5%
	70.0%

	Level 2
	29.4%
	45.5%
	59.5%

	Level 3
	24.5%
	35.0%
	50.4%

	Level 4
	21.0%
	35.0%
	42.0%

		
	B.
	Goal Achievement Metric: At the beginning of each year, Management will propose annual goals for each Executive to the Committee for review and approval.  The Achieved Goals component of the Short Term Cash Incentive will be based on a percentage of Base Salary for each Executive Level as applicable (see chart below).  

	
				
	Goals Achieved Component of the Short Term Cash Incentive

	Incentive as a % of Base Salary
	Threshold Goals Achieved
	Target 
Goals Achieved
	Maximum Goals Achieved

	Level 1
	18.0%
	19.5%
	30.0%

	Level 2
	12.6%
	19.5%
	25.5%

	Level 3
	10.5%
	15.0%
	21.6%

	Level 4
	9.0%
	15.0%
	18.0%

		
	5.
	Long Term Incentive (“LTI”).

		
	A.
	Components:  The LTI has two components: a Time Based metric (50% of total) and a Performance Based metric (50% of total).  The total LTI will be based on a percentage of Base Salary for each Executive Level as applicable (see chart below).    The number of shares will be determined by an average of the High and Low Synalloy stock price on the day prior to the restricted stock grant.   Exhibit A details each Executive, their corresponding level, and Adjusted EBITDA metrics.

	
					
	Long Term Incentive

	Incentive as a % of Base Salary
	Total Long Term Incentive 
	 
	Time Based Incentive
	Performance Based Incentive

	Level 1
	65.0%
	 
	32.5%
	32.5%

	Level 2
	45.0%
	 
	22.5%
	22.5%

	Level 3
	25.0%
	 
	12.5%
	12.5%

	Level 4
	12.5%
	 
	6.25%
	6.25%

		
	A.
	LTI: Time Based Incentive:  The Time Based Incentive is intended to be a reward and retention tool for the Company Executives.  The restricted stock calculation is based on a percentage of base salary by Executive Level.  The grant date is generally in February at the beginning of Year 1 as approved by the Committee.  The restricted stock should have a three year vesting period with 33.3% vesting each year.

		
	B.
	LTI: Performance Based Incentive:  The Performance Based Incentive is a Three Year Cumulative Adjusted EBITDA 

Target calculated by taking the current year Adjusted EBITDA target as approved in the Short Term Incentive and then applying a compounded growth rate for years two and three.  The growth rates are proposed by Management and approved by the Committee.  Threshold and Maximum Adjusted EBITDA are calculated as a percentage of the Target Adjusted EBITDA as approved by the Committee.   The Performance Based Incentive of the LTI will be based on a percentage of Base Salary for each Executive Level as applicable (see chart below).    The grant date is generally in February at the beginning of Year 1 as approved by the Committee.  The restricted stock should have a three year vesting period with 100.0% vesting at the end of year 3 at the level of 3 year cumulative Adjusted EBITDA achievement.

	
			
	Performance Based Component of LTI

	 
	3 Year Cumulative Adjusted EBTIDA
	% of Performance Based Incentive

	Below Threshold
	$XXM
	0%

	Threshold Performance
	$XXM
	50%

	Target Performance
	$XXM
	100%

	Maximum Performance
	$XXM
	150%

		
	6.
	Mid-Year Acquisition Adjustments. The Company, from time to time, may acquire another business or operating division mid-year, which acquisition will not be budgeted or accounted for in the annual or three year Adjusted EBITDA Targets that are established at the beginning of the fiscal year. Upon consultation with the CEO and division Presidents, the Committee may amend the applicable Adjusted EBITDA Targets to account for any and all mid-year acquisitions.

		
	7.
	General Provisions. Neither the adoption of this Incentive Plan nor its operation, nor any document describing or referring to this Incentive Plan, or any part thereof, shall confer upon any employee any right to continue in the employ of the Company or any subsidiary, or shall in any way affect the right and power of the Company to terminate the employment of any employee at any time with or without assigning a reason therefor to the same extent as the Company might have done if this Incentive Plan had not been adopted. In light of the importance of promoting Long Term relationships and a long- term commitment to the ongoing success of the Company, in order to receive any cash payments or grants of restricted stock under this Incentive Plan, an employee must be employed by the Company on the last day of the applicable fiscal year; provided, however, that if termination of employment occurs as a result of death, disability (unable to work for 12 consecutive months), or retirement (with a minimum of 5 years of employment with the Company), payment of the cash bonus and/or the grant of restricted will be determined as otherwise provided in this Incentive Plan but shall be prorated to reflect that portion of the prior year in which the employee was an employee of the Company. Eligible employees must have entered into a confidentiality and non-competition agreement in a form acceptable to the CEO of the Company in order to receive any benefits under this Incentive Plan. Payments under this Incentive Plan will be prior to March 15th of the year following the Company’s fiscal year end. This Incentive Plan shall be governed by the laws of the Commonwealth of Virginia.

		
	8.
	Duration and Amendment of the Incentive Plan. Unless previously terminated by the Committee, the Incentive Plan shall be effective for the fiscal year specified in the Incentive Plan. The Committee may alter, amend, or terminate this Incentive Plan, including any exhibits attached hereto, at any time.

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