Kevin DeSanctis, who officially became CEO of Revel on Feb. 17, 2011, resigned from his position effective March 19, 2013, when interim CEO Jeffrey Hartmann was approved for the position by the Casino Control Commission.
Under the Executive Transition Agreement, DeSanctis and Michael Garrity, the former chief investment officer who also resigned March 19, agreed to provide full-time development services through May 31. From June 1 through Sept. 19, the two shall provide part-time consulting services of up to about 20 percent of their time.
In addition to assisting the company with its bankruptcy filing and operational and business analyses, the two are required to provide substantial completion of certain projects by the end of May:
high-slot area and players lounge
HQ Day beach club
Noodle bar, additional player’s club sections and signage
If DeSanctis and Garrity substantially complete the development projects by the end of May, Revel will pay them $5.36 million. On Sept. 19, they will be entitled to an additional payment of $1.79 million, with a third of that based on the two substantially completing the high-slot area and players lounge, an additional third based on completion of the HQ Day beach club and final third based on the eateries and signage work.
The payment will be divided, with DeSanctis receiving nearly 60 percent and Garrity receiving the rest.
Revel’s new board will determine whether the tasks have been completed. It also will have the option of terminating the obligation, but the payment will be made as if the tasks and other work were completed.
Revel also will provide the executives with 12 months of medical and life insurance and reimburse them for any reasonable out-of-pocket expenses. But the two also will give up rights to severance, equity, equity-based compensation and cash adjustment, share adjustment and stock election under prior employment agreements.
Executives agree to refrain from making derogatory and disparaging remarks about the company or people affiliated with it and luring away employees of Revel and Atlantic City customers for one year.
Source: Revel Executive Transition Agreement filed with Securities and Exchange Commission