EXHIBIT 10(x)
November 26, 2001
Xxx Xxxxxxxx, General Manager
Gold Ranch Casino
Gold Ranch Road
Verdi, Nevada
Dear Xxx:
The following will outline our employee agreement that will go into effect
on the closing date of the acquisition of the Gold Ranch Casino by the Sands
Regent via its wholly-owned subsidy, Last Chance, Inc., and will be the only
agreement between these entities and yourself. Neither Last Chance, Inc., nor
The Sands Regent will be responsible for any prior agreements as an employee of
Prospector Gaming Enterprises, Inc., or Xxxxx and Xxxxx Xxxxxxxx.
Position: Your title, in addition to General Manager of the Gold Ranch
Casino, will be that of Chief Operating Officer of the Sands
Regent, the parent Company, and serve at the pleasure of the
Board of Directors as an Officer and Board Member of Last
Chance, Inc.
Term: This Agreement shall commence as of the date of the closing of
the Gold Ranch acquisition and continue until the second
anniversary of such date and shall be renewed annually on that
date June 1st for an additional one-year period so that the
term hereof at each renewal date shall be a two-year period
unless either party to this Agreement gives notice prior to
such renewal date that this Agreement shall not be renewed, in
which case, this Agreement will terminate at the end of the
ensuing year. It is understood that this Agreement may be
terminated by you without consent of the Company or by the
Company for cause.
Cause shall be defined as a breach of a fiduciary obligation
to any member of the Company, a continual failure to perform
your duties to the Company, excessive absenteeism or
dishonesty, your arrest, conviction, indictment or written
confession of a felony, the inability to maintain in good
standing a gaming license in the State of Nevada or any state
the Company chooses to do business in or upon your death.
In the event of your death or total disability, which
precludes you from carrying out your assigned tasks, the
salary portion of this Agreement will remain in effect for a
six-month period.
Should the Company terminate you without cause, you shall
receive a continued salary at your then current level and
insurance benefits as made available to other executive
personnel for a continued twelve-month period.
Salary: During the first twelve months, a salary of $165,000.00;
during the second twelve months, a salary of $175,000.00.
Salary to be paid in accordance with the Company policy for
the payment of Company executives.
Xxx Xxxxxxxx
Re: Employment Agreement
November 26, 2001
Page TWO
Bonus: Should pre-established, financial, operational and strategic
goals of the Company be met, you will be eligible for a bonus
of up to 40% of your annual compensation. It is understood
that you must be employed by the Company in good standing on
the date bonuses are paid in line with other senior management
positions. Should this Agreement go into effect covering only
a partial segment of the Company's fiscal year, bonus
eligibility would be prorated for that period.
Stock
Options: As of the date of this Agreement, the Company hereby grants to
you an option to purchase 60,000 shares of the common stock of
the Company at a price reflecting the closing market price as
of that date. An additional 60,000 shares of common stock will
be granted on the first anniversary date. Should this
Agreement be extended an additional year, then an additional
60,000 shares of commons stock will be granted on the first
day of that twelve-month period. These stock options shall
vest over a four-year period, 25% each year, and are subject
to the terms and conditions of the Sands Stock Option Plan.
Car: It is understood that you have a company vehicle at your
disposal that is currently leased. You will retain use of said
vehicle until the expiration of that lease, and there is no
provision in this Agreement for future use of a company
vehicle beyond the current lease term.
Insurance
Benefits: You will be eligible to participate in all insurance programs in
like manner to senior management and such benefits will be made
available immediately upon hire.
Vacation
Benefits: You shall have four weeks paid vacation during each year of
this Agreement taken at such times as mutually convenient to
you and the Company. You will retain all vacation benefits
currently accrued through Gold Ranch. Such accrued benefits
will be transferred with your employment by the Sands Regent.
Xxx, I believe your skills and enthusiasm will be a huge asset to our Company
and I look forward to working with you in the future.
Best wishes,
/s/ Xxxxxx X. Xxxxx
Xxxxxx Xxxxx, President and
Chief Executive Officer
AGREED to this 3rd day of January 2002.
/s/ Xxx Xxxxxxxx
Xxx Xxxxxxxx
