Exhibit 10.15
EMPLOYMENT AGREEMENT
This EMPLOYMENT AGREEMENT (the "Agreement") made this 22nd day of April
1999 by and between the MOHEGAN TRIBAL GAMING AUTHORITY, an instrumentality of
THE MOHEGAN TRIBE OF INDIANS OF CONNECTICUT, a sovereign Indian nation having an
address of Xxx Xxxxxxx Xxx Xxxxxxxxx, Xxxxxxxxxx, Xxxxxxxxxxx 00000 (the
"Employer"), and XXXXXXXX XXXXXXXXXX XXXXX, residing at 00 Xxxxxxx Xxxx, Xxx
Xxxx, Xxxxxxxxxxx 00000 ("Executive").
WITNESSETH:
WHEREAS, the Employer owns and operates the Mohegan Sun Casino and plans to
develop a resort hotel, convention center and future amenities (as presently
existing and hereafter developed, the "Business"); and
WHEREAS, the Employer desires to continue to employ Executive in the
Business for a term of years and for an increase in compensation but subject to
certain restrictions, all as more fully set forth in this Agreement, and
Executive desires to continue to be employed by Employer on the terms and
conditions set forth herein; and
WHEREAS the Employer is desirous of assuring that Executive has the
authority to fully carry out his duties hereunder by being responsible to the
Employer, acting through its Chief Executive Officer.
NOW, THEREFORE, in consideration of the promises and the mutual covenants,
terms and conditions hereinafter set forth, and for other good and valuable
consideration, receipt whereof is specifically acknowledged, the parties hereto
hereby agree as follows:
1. Nature of Services and Duties
(A) The Employer hereby agrees to continue to employ Executive as its
Executive Vice President, Marketing upon the terms set forth herein, and
Executive hereby accepts such continued employment.
(B) Executive shall perform such duties and services of an executive,
managerial and administrative nature as are customary for a marketing executive
vice president and which, consistent with the foregoing, the Employer may from
time to time through communication from the Chief Executive Officer hereafter
assign to him. Such duties shall include, but not be limited to, the creation
and execution of marketing plans, recruiting and hiring of executive marketing
staff, overseeing the creation and implementation of public relations and
advertising campaigns, developing marketing budget and staffing levels,
overseeing the development of special events and entertainment productions,
overseeing food and beverage operations, overseeing the hotel operations, and
participating at a senior executive level in the development of policy of the
Employer. Executive shall report exclusively to the Chief Executive Officer of
the Employer. The Employer shall not restrict, reduce or otherwise limit
Executive's responsibility or authority without his consent.
(C) Executive shall devote his best efforts and ability and all required
business time to the performance of his duties and responsibilities hereunder to
achieve the goals set forth in the employer's annual business plan. Executive
shall perform all of his duties to the Employer faithfully, competently, and
diligently.
2
(D) The Employer shall indemnify, defend, and hold Executive harmless,
including the payment of reasonable attorney fees, if the Employer does not
directly provide Executive's defense, from and against all claims made by
anyone, including, but not limited to, a corporate entity, company, other
employee, agent, patron, tribal member, or any member of the general public with
respect to any claim that asserts as a basis, any acts, omissions, or other
circumstances involving the performance of Executive.
2. Effective Date
This Agreement shall be effective on the date it is approved by the
Secretary of the United States Department of Interior (or his designee) or on
the date that the Secretary of the United States Department of Interior (or his
designee) writes to either party, stating that such approval is not required.
3. Term
This Agreement shall govern Executive's employment with the Employer from
the Effective Date through and including December 31, 2004. This Agreement,
including this paragraph, shall automatically renew for an additional term of
five years unless either party shall notify the other of its intention to
terminate, or unless otherwise terminated as provided herein. Any such notice
shall be delivered not later than 120 days prior to the end of the then current
term and shall be effective at the end of such term, except as otherwise
provided herein.
3
4. Base Annual Salary
Commencing with the Effective Date and until December 21, 1999, the
Employer shall continue to pay Executive his current Base annual Salary in equal
weekly installments. Commencing January 1, 2000, the Base Annual Salary shall
be increased to $485,000.00 payable in equal weekly installments of $9,326.92.
Commencing on January 1, 2001 and on each January 1 thereafter during the term
of this Agreement, the Base Annual Salary shall be increased in an amount
mutually agreed to by Executive and the Employer, which amount shall in no event
be less that 5% of the then current Base Annual Salary.
5. Annual Bonus
The Employer shall determine an annual bonus payable to Executive, the
amount of which shall be based upon the financial goals and the division goals
of the Employer, and the personal goals of Executive, all as established by
mutual agreement at the beginning of each fiscal year. The annual bonus for the
previous fiscal year shall be paid no later than October 31 of each year during
the term. The annual bonus for the period from the Effective Date through
September 30, 1999 shall be determined in accordance with the Mohegan Sun Bonus
Plan as is effect as of the Effective Date. The annual bonus for the period
from and after October 1, 1999, shall be not less than 33 1/3% of the Annual
Base Salary in effect for the period for which the annual bonus is to be paid.
4
6. Life Insurance
(A) The Employer shall, during the term of this Agreement apply for and
procure insurance on the life of Executive as more fully described in subsection
(B) of this Paragraph 6. Upon request of Employer, Executive shall submit to
such medical examinations, supply such information, and execute such documents
as may be required by the Employer or insurance companies to whom the Employer
has made application.
(B) So long as Executive is employed hereunder, the Employer shall maintain
a life insurance policy on the life of Executive in the face amount equal to one
times the Executive's Annual Base Salary. Such policy shall be guaranteed
renewable during the term of this Agreement, including any extension hereof.
Executive shall be and remain the owner of such policy of life insurance and
shall enjoy all incidents of ownership, including the right to designate the
beneficiary and any right to borrow on such policy; provided, however, that the
beneficiary of such policy shall be the spouse of Executive, his child or
children, trustees for their benefit, his estate, or any one or more of them.
The Employer shall pay all premiums on such policy when due. In the event that
the Employer is unable to obtain such life insurance in the amount required or
is unable to obtain all or part of such insurance at standard rates, the
Employer shall at its option all or part of such insurance at non-standard rates
or shall self-insure in whole or in part.
In addition, Employer may at its option obtain key man insurance in amounts
determined by Employer, with the Employer as owner and beneficiary of
5
such policy or policies, and Executive shall cooperate with Employer and shall
be available for any and all examinations made at Employer's request.
(C) The results of any examinations conducted pursuant to this section
shall at all times remain confidential and shall not be sought by or disclosed
to the Employer or to any third party other than the insurance carrier.
7. Reimbursement of Certain Expenses; Vacation; Medical Benefits
(A) The Employer will reimburse Executive for necessary and reasonable
business expenses incurred by him in the performance of his duties hereunder,
provided, that he shall obtain the approval for such expenditures in accordance
with the procedures adopted by the Employer from time to time and generally
applicable to its executive-level employees, including such procedures with
respect to submission of appropriate documentation and receipts. Failure by
Executive to follow such procedures shall entitle the Employer to refuse to
reimburse Executive for such expenses until such time as such failure has been
cured. It is understood and agreed that Employer shall not be responsible for
any expense of Executive for leasing or operation of a vehicle for Executive
(except that Executive shall be entitled to reimbursement for the expenses,
including mileage, actually incurred in connection of his use of his automobile
for the business-related purposes of the Employer), nor for any expense of
Executive for legal expenses or tax planning expenses incurred by Executive in
interpreting this or any other agreement between Executive and Employer.
(B) Executive shall be entitled to four weeks paid vacation per fiscal year
(at least two weeks of which must be taken in 14 consecutive days).
6
(C) Executive shall participate in such employee benefit plans and programs
(including but not limited to medical insurance programs) as are now or may
hereafter be adopted by the Employer for its executive employees and their
families. Employer shall continue to provide such medical insurance coverage
for a period of one year after any termination by Employer of Executive's
employment hereunder if such termination was without Cause, as hereinafter
defined.
8. Disability; Termination
(A) If Executive shall become unable to perform all of his duties set forth
in paragraph 1 of this Agreement due to mental or physical disability, all
compensation and benefits provided in this Agreement shall continue to be paid
and provided in full for a period not exceeding 180 consecutive days. Upon
completion of such 180 days (or if Executive shall be disabled for an aggregate
period of 180 days in any period of 360 consecutive days by the same incapacity)
the Employer may, at its sole option, suspend Executive's employment until
Executive is recovered from such mental or physical disability (as reasonably
certified by a physician designated by the Employer). During any period of
suspension, Executive shall receive only such compensation as may be provided
under the disability insurance described in Paragraph 8(B).
(B) Employer, at the sole expense of Employer, shall provide disability
insurance coverage for Executive. Such policy shall provide payment of 50% of
Base Annual Salary commencing with termination of employment by reason of
physical or mental disability and for a period of two years if such disability
was the result of injury and to age 65 if such disability was the result of
physical or mental illness.
7
In the event the Employer is unable to obtain disability insurance in the amount
required, or is unable to obtain all or part of such insurance at standard
rates, the Employer shall at its option obtain part or all of such insurance at
non-standard rates or shall self-insure in whole or in part.
(C) Subject to the provisions of this paragraph, the Employer may terminate
Executive's employment for Cause, which shall mean only that (i) Executive shall
be in violation of the restriction contained in paragraph 9 of this Agreement,
(ii) Executive shall fail to be, for a period of thirty (30) consecutive days,
licensed by the State of Connecticut or Class III gaming; (iii) Executive shall
have been convicted of any crime involving fraud, theft or moral turpitude, or
(iv) Executive shall have intentionally committed a material breach of his
obligations under this Agreement in order to cause the Employer, acting through
the Chief Executive Officer, to terminate Executive. In the event that Employer
desires to terminate Executive, the Employer shall give written notice
specifying the act(s) claimed to constitute cause and specifying an effective
date of termination, which date shall be no sooner than thirty (30) days after
the giving of such notice. Upon the written request of Executive, the
Management Board of the Employer shall meet with Executive to discuss the
reasons for termination and to provide Executive with an opportunity to respond.
In the event Executive fails to cure the act(s) claimed to constitute cause as
set forth in the notice of termination, Executive will cease employment with the
Employer effective upon the date provided in the notice of termination. If such
termination is for Cause, then
8
Executive shall not be entitled to any further compensation from and after the
date of termination.
(D) Subject to the provisions of this paragraph, the Employer may terminate
Executive's employment other than for Cause, as defined above. In the event of
termination other than for Cause, Executive shall be paid, at termination, the
Annual Base Salary plus an annual bonus equal to one hundred percent (100%) of
the Annual Base Salary from the date of termination to the expiration date of
this Agreement (without regard to any renewal right after the date of
termination).
(E) In the event that Executive voluntarily terminates his employment
hereunder, Executive's employment shall cease as of the date provided in
Executive's notice to Employer of his voluntary termination, and thereafter,
provided that the Employer shall not then be in material breach of this
Agreement, Executive shall not be entitled to any further compensation
hereunder.
9. Covenants of Executive Not to Compete
Executive acknowledges that in the states of New York, Connecticut,
Massachusetts, Rhode Island, Vermont, New Hampshire and Maine (the "Restricted
Area") (i) the Employer is one of a limited number of entities engaged in the
Business; (ii) his services to the Employer are special and unique; (iii) his
work for the Employer has given him and will continue to give him access to
confidential information concerning the Employer; and (iv) he has the means to
support himself and his dependents other than by engaging in the Business of the
Employer and the provisions of this Paragraph 9 will not impair such ability.
Accordingly, in order to
9
induce the Employer to enter into this Agreement, Executive covenants and agrees
that :
(A) So long as Executive is employed by Employer and, if Executive's
employment is voluntarily terminated by Executive or terminated by the Employer
for Cause for a period of twelve (12) months thereafter (the "Restricted
Period") Executive shall not, in the Restricted Area, entertain any solicitation
of employment and shall not compete in any manner, either directly or
indirectly, including, without limitation, as an employee or independent
contractor, investor, partner, shareholder, officer, director, principal, agent
or trustee of any entity engaged in casino gaming, in the Restricted Area,
without the express written approval of the Employer; provided, however, that
ownership of less than five percent (5%) of the shares of a publicly traded
corporation engaged in casino gaming shall not be deemed to violate this
Paragraph.
(B) During the Restricted Period, Executive shall not, directly or
indirectly, hire or solicit any employee of the Employer or encourage any such
employee to leave such employment.
10. Confidential Information
Executive agrees to receive Confidential Information (as hereinafter
defined) of the Employer in confidence, and not to disclose to others, assist
others in the application of, or use or his own gain, such information, or any
part thereof, unless and until it has become public knowledge, has come into the
possession of such other or others by legal and equitable means, or if required
to do so by order of a court of competent jurisdiction. Executive further
agrees that, upon termination of
10
his employment with the Employer, all documents, records, notebook and similar
repositories of or containing Confidential Information, including copies
thereof, then in Executive's possession, whether prepared by him or others, will
be left with the Employer. For purposes of this Paragraph 10, "Confidential
Information" means information disclosed to Executive or known by Executive as a
consequence of or through his employment by the Employer, not generally known in
the industry in which the Employer is or may become engaged about the Employer's
Business, products, processes and services. Executive's obligations under this
Paragraph 10 shall survive any termination or expiration of this Agreement and
Executive's employment hereunder.
11. Rights and Remedies Upon Breach
Executive acknowledges and agrees that a violation of any provision of
Paragraph 9 or 10 of this Agreement (the "Restrictive Covenants") shall cause
irreparable harm to the Employer, and the Employer shall be entitled to specific
performance of this Agreement or an injunction without proof of special damages,
together with costs and attorney's fees incurred by the Employer in enforcing
its rights under this Agreement. If Executive breaches, or threatens to commit
a breach of any of the Restrictive Covenants, the Employer shall have the
following rights and remedies, each of which rights and remedies shall be
independent of the other and severally enforceable, and all of which rights and
remedies shall be in addition to, and not in lieu of, any other rights and
remedies available to the Employer under law or in equity:
11
(A) The right and remedy to have the Restrictive Covenants specifically
enforced by any court of competent jurisdiction including, without limitation,
the right to entry against Executive of restraining orders and injunctions
(preliminary, mandatory, temporary and permanent), without proof of special
damages, against violations, threatened or actual, and whether or not then
continuing of such covenants, it being acknowledged and agreed that any such
breach or threatened breach will cause irreparable injury to the Employer and
that money damages will not provide an adequate remedy to the Employer and
(B) The right and remedy to require Executive to account for and pay over
to the Employer all compensation, profits, monies, accruals, increments or other
benefits derived or received by Executive as the result of any transaction
constituting a breach of the Restrictive Covenants. The Employer may set off
any amounts due it under this Paragraph 11(B) against any amounts owed to
Executive under Paragraph 4, 5 or 8.
12. Notice
All notices hereunder shall be in writing. Any notice, request,
information, legal process, or other instrument to be given or served hereunder
by any party to another shall be deemed given or served hereunder by any party
to the other if either delivered personally or sent by prepaid registered or
certified mail, return receipt requested. Any such notice to the Employer shall
be sent to the address set forth in the introductory paragraph of this
Agreement, to the attention of the Chief Executive Officer. Any such notice to
Executive shall be sent to his residential address as set forth in the
introductory paragraph of this Agreement. Either party
12
may change the address of notice purposes to the other party as provided in this
Paragraph.
13. Entire Agreement; Modification
Except as otherwise provided herein, this Agreement supersedes and cancels
any and all prior agreements between the parties hereto, express or implied,
relating to the subject matter hereof. This Agreement sets forth the entire
agreement of the parties hereto with respect to the subject matter hereof. This
Agreement may not be changed, modified, amended or altered except in a writing
signed by both parties.
14. Non-Waiver
The failure or refusal of either party to insist upon the strict
performance of any provision of this Agreement or to exercise any right in any
one or more instances or circumstances shall not be construed as a waiver or
relinquishment of such provision or right and shall in no way effect such
provision or right, nor shall such failure or refusal be deemed a custom or
practice contrary to such provision or right.
15. Severability
If any paragraph, term or provision of this Agreement shall be held or
determined to be unenforceable, the balance of this Agreement shall nevertheless
continue in full force and effect and unaffected by such holding or
determination. In addition, in any such event, the parties agree that it is
their intention and agreement that any such paragraph, term or provision which
is held or determined to be unenforceable as written, shall nonetheless be
enforced and binding to the
13
fullest extent permitted by law as though such paragraph, term or provision
had been written in such a manner to such an extent as to be enforceable under
the circumstances. Without limitation of the foregoing, with respect to any
Restrictive Covenant contained herein, if it is determined that any such
provision is excessive as to duration or scope, it is intended that it
nonetheless be enforced for such shorter duration or without such narrower scope
as will render it enforceable.
16. Governing Law
This Agreement shall be governed and construed in accordance with the laws
of the State of Connecticut and the parties agree that, except as provided in
section 19, only the federal and state courts located in the State of
Connecticut shall have jurisdiction over this Agreement.
17. Limited Waiver of Sovereign Immunity
The Employer hereby waives its sovereign immunity from suit for claims by
the Executive for the enforcement of this Agreement and any remedies for breach
thereof under Connecticut law. Nothing herein shall limit the Executive's
right to proceed with any claims otherwise allowed under the laws of the Mohegan
Tribe of Indians of Connecticut. The Employer hereby consents to personal
jurisdiction and venue in any court of the State of Connecticut or any federal
court sitting in the State of Connecticut, and hereby waives any claim that it
may have that such court is an inconvenient forum for the purposes of any
proceeding arising under this Agreement as aforesaid and any requirement that
tribal remedies must be exhausted.
14
18. Dispute Resolution
Except as otherwise provided herein, whenever during the term of this
Agreement, any disagreement or dispute arises between the parties as to the
interpretation of this Agreement or any rights or obligations arising hereunder,
including the licensing of Executive by the Tribal Gaming Commission, such
matters shall be resolved, whenever possible, by meeting and conferring. Any
party may request such a meeting by giving notice to the other, in which case
such other party shall make itself available within seven (7) days thereafter.
If such matters cannot be resolved within ten (10) days after such meeting,
either party may seek a resolution by binding arbitration in accordance with the
then prevailing rules of the American Arbitration Association (or any successor
thereto to the extent not inconsistent herewith), upon notice to the other party
of its intention to do so. The parties agree that in any such arbitration each
party shall be entitled to discovery as provided by the Federal Rules of Civil
Procedure. All hearings shall be conducted in Hartford County, Connecticut
within fifteen (15) days after the arbitrator is selected and shall be conducted
in his or her presence. The decision of the arbitrator will be final and
binding on the parties. The costs and expenses of the arbitration shall be
shared equally by the parties.
19. Gaming Disputes Court Jurisdiction
The Gaming Disputes Court of the Mohegan Tribe of Indians shall have
limited jurisdiction, in the event that a state or federal court denies
jurisdiction, to (a) enforce the requirement that the parties submit disputes to
arbitration as required by Paragraph 18 and (b) enforce the arbitration
decision as provided in Paragraph 18.
15
20. Headings
The headings of this Agreement are inserted for convenience only and shall
not be considered in construction of the provisions hereof.
21. Assignment and Successors; Binding Effect
The rights and obligations of the Employer under this Agreement shall inure
to the benefit of and shall be binding upon the successors of the Employer and
may be assigned, for all or any part of the term hereof, by the Employer but the
Employer shall continue to be financially responsible to Executive hereunder.
Executive shall have no right to assign, transfer, pledge or otherwise encumber
any of the rights, nor to delegate any of the duties created by this Agreement
without prior written consent of the Employer. Subject to the foregoing, this
Agreement shall be binding upon and inure to the benefit of the Employer, its
successors and assigns, and Executive, his heirs and legal representatives.
22. Federal Approval Provisions
Consistent with the provisions of 25 U.S.C. (S) 81, the parties set forth
the following:
Party in Interest: Mohegan Tribal Gaming Authority
Address: Xxx Xxxxxxx Xxx Xxxxxxxxx, Xxxxxxxxxx, Xxxxxxxxxxx 00000
Occupation: Instrumentality of an Indian Tribe
Party in Interest: Xxxxxxxx X. Xxxxx
Address: 00 Xxxxxxx Xxxx, Xxx Xxxx, Xxxxxxxxxxx 00000
Occupation: Executive Vice President, Marketing, Mohegan Tribal Gaming
Authority
Fixed limited time to run: From the effective date up to and including December
31, 2004, subject to renewal for an additional five (5) years.
16
Purpose: This Agreement governs the employment of Xxxxxxxx X. Xxxxx as the
Executive Vice President, Marketing of the Mohegan Sun Casino.
Scope of Tribal Authority and Reason for Exercising that Authority: The
Chairman of the Management Board of the Mohegan Tribal Gaming Authority is
authorized to execute this Agreement pursuant to pursuant (i) Article XIII,
Section 1 of the Mohegan Tribe Constitution, (ii) An Ordinance Establishing the
Mohegan Tribal Gaming Authority, and (iii) Resolution No. _______ of the
Management Board dated April 22, 1999. The Chairman of the Management Board
exercises his authority in this instance because the Management Board has
determined that execution of this Agreement will further the economic
development objectives of the Mohegan Tribal Gaming Authority and of The Mohegan
Tribe of Indians of Connecticut.
Time and Place of Execution: This Agreement was executed on or about 2:45 PM
(time) on April 22, 1999, at Uncasville, Connecticut, for the particular
purposes set forth above.
Execution in Duplicate: This Agreement shall be executed in duplicate originals
for each party.
The undersigned agree that the foregoing Agreement is in compliance with 25
U.S.C. Section 81.
IN WITNESS WHEREOF, the Employer has caused this Agreement to be executed
by the Chairman of its Management Board, duly authorized, and
17
Executive has affixed his signature hereto, on the date and year first above
written.
Employer: Executive:
MOHEGAN TRIBAL XXXXXXXX X. XXXXX
GAMING AUTHORITY
By: _____________________________ ___________________________________
Xxxxxx X. Xxxxxx, Chairman Xxxxxxxx X. Xxxxx
Management Board
STATE OF CONNECTICUT )
ss. Montville April 22, 0000
XXXXXX XX XXX XXXXXX )
Personally appeared XXXXXX X. XXXXXX, Chairman of the Management Board of
the MOHEGAN TRIBAL GAMING AUTHORITY, an instrumentality of The Mohegan Tribe of
Indians of Connecticut, signer and sealer of the foregoing instrument, and
acknowledged the same to be his free act and deed and the free act and deed of
the Mohegan Tribal Gaming Authority, before me.
___________________________________
Notary Public
My Commission Expires:
STATE OF CONNECTICUT )
ss. Montville April 22, 0000
XXXXXX XX XXX XXXXXX )
Personally appeared XXXXXXXX X. XXXXX, signer and sealer of the foregoing
instrument, and acknowledged the same to be his free act and deed, before me.
____________________________________
Notary Public
My Commission Expires:
18
Approved pursuant to 25 U.S.C. (S) 81 this ____ day of _________, 1999.
UNITED STATES DEPARTMENT OF
INTERIOR
By: ________________________________
Its
19
