Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Resignation of Mark Zoldan as Chief Financial Officer
On March 13, 2023, Mark Zoldan, the Chief Financial Officer of Marblegate
Acquisition Corp. (the "Company"), separated from the Company in order to pursue
other interests, effective March 13, 2023.
Appointment of Jeffrey Kravetz as Chief Financial Officer
On March 17, 2023, the Company's board of directors (the "Board") appointed
Jeffrey Kravetz as the Company's Chief Financial Officer and principal
accounting officer, effective as of March 13, 2023.
Mr. Kravetz, 44, has served as Chief Financial Officer of Marblegate Asset
Management LLC since March 13, 2023. From 2015 to 2023, he served as the Chief
Financial Officer of Contrarian Capital Management, L.L.C., an investment
management firm, where he was responsible for the accounting, operational and
financial activities of the firm's investment and management entities. From 2015
to 2023, Mr. Kravetz served as director of various non-public investment
vehicles affiliated with Contrarian Capital Management, L.L.C. Mr. Kravetz holds
a B.S. in Accounting from Binghamton University School of Management and is a
Certified Public Accountant. He is a member of the New York State Society of
Certified Public Accountants.
As disclosed in the Company's Annual Report on Form 10-K, none of the Company's
officers has received any cash compensation for services rendered to the
Company. The Company has agreed to pay Marblegate Acquisition LLC ("MAM") a
total of $10,000 per month for secretarial and administrative support. Upon
completion of the Company's initial business combination or its liquidation, the
Company will cease paying these monthly fees. No compensation of any kind,
including any finder's fee, advisory fee, reimbursement or consulting fee, will
be paid by the Company to MAM, MAM's officers and directors, or any affiliate of
MAM or their respective officers and directors, prior to, or in connection with
any services rendered in order to effectuate, the consummation of the Company's
initial business combination. However, these individuals will be reimbursed for
any out-of-pocket expenses incurred in connection with activities on the
Company's behalf such as identifying potential target businesses and performing
due diligence on suitable business combinations. The Company does not have a
policy that prohibits MAM, its executive officers or directors, or any of their
respective affiliates, from negotiating for the
reimbursement of out-of-pocket expenses by a target business. The Company's
audit committee reviews on a quarterly basis all payments that were made to MAM,
its officers or directors, or any of our or MAM's affiliates.
As previously disclosed in the Company's Current Report on Form 8-K, on
February 14, 2023, the Company entered into a business combination agreement (as
it may be amended or restated from time to time, the "Business Combination
Agreement"), with MAM, Marblegate Capital Corporation, a Delaware corporation
("New MAC"), MAC Merger Sub, Inc., a Delaware corporation and a wholly-owned
subsidiary of New MAC ("Merger Sub"), DePalma Acquisition I LLC, a Delaware
limited liability company ("DePalma I"), and DePalma Acquisition II LLC, a
Delaware limited liability company ("DePalma II," and together with DePalma I,
the "DePalma Companies" or "DePalma"), pursuant to which MAC agreed to combine
with DePalma in a series of transactions that will result in New MAC becoming a
publicly-traded company whose shares are expected trade on the Nasdaq Global
Market (collectively, the "Business Combination").
Upon consummation of the Business Combination, MAM and New MAC will enter into a
Management Services Agreement ("MSA"), pursuant to which MAM will provide
certain management services to New MAC including (i) evaluating, managing,
performing due diligence on, negotiating and overseeing the acquisition and
disposition of New MAC's and its subsidiaries' assets, (ii) evaluating,
managing, negotiating and overseeing the origination, structuring, restructuring
and workout of taxi-medallion loans and other loans held by New MAC (other than
typical daily loan servicing activities), (iii) managing New MAC's and its
subsidiaries' day-to-day business and operations in complying with any
regulatory requirements applicable to them in respect of their business
activities, (iv) evaluating the financial and operational performance of any of
New MAC's subsidiaries, (v) providing a management team to serve as executive
officers of New MAC and/or its subsidiaries, including providing day-to-day
financial, operational and other executive management services (vi) identifying,
evaluating, managing, performing due diligence on, negotiating and overseeing
the provision of debt or equity financing as well as the acquisition of all or a
portion of target businesses or assets, in each case, by New MAC, and
(vii) performing any other services for and on behalf of New MAC and its
subsidiaries to the extent that such services are consistent with those that are
customarily performed by the executive officers and employees of a publicly
listed company.
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The MSA shall be effective upon consummation of the Business Combination and
continue in operation, unless terminated in accordance with its terms, until the
fifth (5th) anniversary of the Closing, subject to certain automatic renewals.
After the completion of the Company's Business Combination, directors of the
Company who become directors of New MAC may be paid fees by New MAC. In
addition, the management services for New MAC following the consummation of the
Business Combination will be provided by MAM and paid pursuant to the MSA. All
of these director and management services fees will be fully disclosed to
stockholders, to the extent then known, in the proxy solicitation materials
furnished to the Company's stockholders in connection with the Business
Combination. The Company has engaged in preliminary discussions with MAM
regarding the MSA but not established any limit on the amount of director or
management services fees that may be paid by New MAC to its directors or to MAM
under the MSA. Any payments to be made pursuant to the MSA will be determined,
or recommended to the Board for determination, either by a compensation
committee constituted solely by independent directors or by a majority of the
independent directors on the Board.
Neither Mr. Kravetz nor any member of his immediate family has or had a direct
or indirect interest in any transaction in which the Company or any of its
subsidiaries was or is a participant that would be required to be disclosed
under Item 404(a) of Regulation S-K.
The Company has entered into a standard director indemnity agreement with
Mr. Kravetz, a form of which was filed as Exhibit 10.9 to the Company's
Registration Statement on Form S-1, filed with the SEC on September 9, 2021.
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