EXHIBIT 4.13
AMENDED 1996 EMPLOYEE STOCK OPTION PLAN
NON-QUALIFIED STOCK OPTION CONTRACT
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THIS NON-QUALIFIED STOCK OPTION CONTRACT is entered into as of July 29,
1998 by and between MTR Gaming Group, Inc. a Delaware corporation (the
"Company"), and Xxxxxx X. Xxxxx (the "Optionee").
In consideration of the mutual promises hereinafter set forth, and for
other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereby agree as follows:
1. OPTION GRANT. The Company, in accordance with the allotment and
grant made by the Company's Board of Directors (the "Board") on September 19,
1997 (the "Grant") and subject to the terms and conditions of the Amended
1996 Employee Stock Option Plan of the Company adopted by the Company's Board
of Directors, and approved by the Company's stockholders (the "Plan"), hereby
agree to be bound by the terms of this Contract with respect to the Grant to
the Optionee of the option to purchase an aggregate of 150,000 shares of
common stock, $.0001 par value per share, of the Company ("Common Stock") at
$1.3438 per share, being the fair market value of such shares of Common Stock
on the date of Grant. This option is not intended to constitute an
"incentive stock option" (within the meaning of Section 422 of the Internal
Revenue Code of 1986, as amended).
2. TERM; EXERCISE. The term of this option is five (5) years
commencing September 19, 1997, subject to earlier termination as provided in
the Plan (the "Term"). This option is exercisable at anytime during the
Term, subject to the terms of this option and the Plan. In no event may a
fraction of a share of Common Stock be purchased under this option.
3. NOTICE OF EXERCISE; PAYMENT. This option shall be exercisable by
giving written notice to the Company at its principal office, presently State
Route 2 South, Chester, West Xxxxxxxx, Attn.: Chief Financial Officer,
stating that the Optionee is exercising this option, specifying the number of
shares being purchased and accompanied by payment in full of the aggregate
purchase price therefor: (i) in cash or by certified check or bank cashier's
check at the time the option is exercised, or (ii) at the discretion of the
Board, either at the time of the grant or exercise of the option, (A) by
delivery to the Company of other Common Stock of the Company, (B) according
to a deferred payment or other arrangement (which may include, without
limiting the generality of the foregoing, the use of other common stock of
the Company) with the person to whom the option is granted or to whom the
option is transferred pursuant to Section 10 of the Plan, or (C) in any other
form of legal consideration that may be acceptable to the Board.
4. REPRESENTATIONS AND WARRANTIES OF OPTIONEE. Notwithstanding the
foregoing, this option shall not be exercisable by the Optionee unless: (a)
a Registration Statement under the Securities Act of 1933, as amended (the
"Securities Act") with respect to the shares of Common Stock to be received
upon the exercise of the option shall be effective and current at the time of
exercise; or (b) there is an exemption from the registration requirements
under the
Securities Act for the issuance of the shares of Common Stock upon exercise.
The Optionee hereby represents and warrants to the Company, that: (i) the
shares of Common Stock to be issued upon the exercise of this option are
being acquired by the Optionee for the Optionee's own account, for investment
only and not with a view to the resale or distribution thereof; and (ii) any
subsequent resale or distribution of shares of Common Stock by the Optionee
will be made only pursuant to (x) a Registration Statement under the
Securities Act which is effective and current with respect to the shares of
Common Stock being sold, or (y) a specific exemption from the registration
requirements of the Securities Act, but in claiming such exemption, the
Optionee shall, prior to any offer of sale or sale of such shares of Common
Stock, provide the Company with a favorable written opinion of counsel
satisfactory to the Company, in form, substance and scope satisfactory to the
Company, as to the applicability of such exemption to the proposed sale or
distribution. Such representation and warranties shall also be deemed to be
made by the Optionee upon each exercise of this option. Nothing herein shall
be construed as requiring the Company to register the shares subject to this
option under the Securities Act.
5. LISTING OF SHARES. Notwithstanding anything herein to the
contrary, if at any time the Board shall determine in its sole discretion
that the listing or qualification of the shares of Common Stock subject to
this option on any securities exchange, Nasdaq or under any applicable law,
or the consent or approval of any governmental regulatory body, is necessary
or desirable as a condition of, or in connection with, the granting of an
option, or the issue of shares of Common Stock thereunder, this option may
not be exercised in whole or in part unless such listing, qualification,
consent or approval shall have been effected or obtained free of any
conditions not acceptable to the Board.
6. NO RIGHT TO CONTINUED EMPLOYMENT. Nothing in the Plan or herein
shall confer upon the Optionee any right to continue in the employ of the
Company, any of its Subsidiaries or a Parent, or interfere in any way with
any right of the Company, any Subsidiary or a Parent to terminate such
employment at any time for any reason whatsoever without liability to the
Company, the Subsidiary or Parent.
7. LEGENDS; STOP TRANSFER INSTRUCTIONS. The Company may affix
appropriate legends upon the certificates for shares of Common Stock issued
upon exercise of this option and may issue such "stop transfer" instructions
to its transfer agent in respect of such shares as it determines, in its
discretion, to be necessary or appropriate to: (a) prevent a violation of, or
to perfect an exemption from, the registration requirements of the Securities
Act and any applicable state securities laws; or (b) implement the provisions
of the Plan or any agreement between the Company and the Optionee with
respect to such shares of Common Stock.
8. TAXES. The Company may withhold cash and/or shares of Common
Stock to be issued to the Optionee in the amount which the Company determines
is necessary to satisfy its obligation to withhold taxes or other amounts
incurred by reason of the grant or exercise of this option, its disposition
or the disposition of the underlying shares of Common Stock. Alternatively,
the Company may require the Optionee to pay the Company such amount in cash
promptly upon demand.
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9. APPLICABILITY OF THE PLAN. The Company and the Optionee agree
that they will both be subject to and bound by all of the terms and
conditions of the Plan, a copy of which is attached hereto and made a part
hereof. Any capitalized term not defined herein shall have the meaning
ascribed to it in the Plan. In the event of a conflict between the terms of
this Contract and the terms of the Plan, the terms of the Plan shall govern.
10. COMPLIANCE WITH APPLICABLE LAWS. The Optionee agrees to comply
with all applicable laws relating to the Plan and the grant and exercise of
the option and the disposition of the shares of Common Stock acquired upon
exercise of the option, including without limitation, federal and state
securities and "blue sky" laws.
11. TRANSFERABILITY. The option is not transferable otherwise than
by will or the laws of descent and distribution and may be exercised, during
the lifetime of the Optionee, only by the Optionee.
12. SUCCESSORS AND ASSIGNS. Except as otherwise provided by the
Plan, this Contract shall be binding upon and inure to the benefit of the
parties hereto and any successor or assign of the Company.
13. RESTRICTION ON SALES. The Optionee agrees not to sell more than
25,000 shares of Common Stock issuable pursuant to this agreement in any
calendar week without the written consent of the Company.
14. GOVERNING LAW. This Contract shall be governed by, and construed
and enforced in accordance with, the laws of the State of Delaware, without
regard to the conflicts of law rules thereof.
15. VALIDITY. The invalidity, illegality or unenforceability of any
provision herein shall not affect the validity, legality or enforceability of
any other provision, all or which shall be valid, legal and enforceable to
the fullest extent permitted by applicable law.
16. AMENDMENTS. The Optionee agrees that the Company may amend the
Plan and the options granted to the Optionee under the Plan, subject to the
limitations contained in the Plan.
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IN WITNESS WHEREOF, the parties hereto have executed this Contract as of
the day and year first above written.
MTR GAMING GROUP, INC.
By: /s/ Xxxxx X. Xxxxxxxx
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Name: Xxxxx X. Xxxxxxxx
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Its: President
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OPTIONEE
By: /s/ Xxxxxx X. Xxxxx
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Xxxxxx X. Xxxxx
(Name of Optionee)
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(Address)
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(Social Security Number)
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