Document:

2014 Q4 CEC Ex 10.107 - Employment Agreement - Shaukat

                  Exhibit 10.107

EMPLOYMENT AGREEMENT

THIS AGREEMENT, made as of April 2, 2012, (the “ Effective Date”) between Caesars Entertainment Operating Company, Inc., with offices at One Caesars Palace Drive, Las Vegas, Nevada (the “Company”), and Tariq M. Shaukat (“Executive”).

The Company and Executive agree as follows:

1.Introductory Statement.  The Company desires to secure the services of Executive effective on the Effective Date.

The Company hereby agrees to employ Executive, and Executive hereby agrees to be employed by the Company, subject to the terms and conditions of this Agreement, for a period beginning on the Effective Date and ending on the fourth anniversary thereof (the “Initial Term”); provided that, on the fourth anniversary of the Effective Date and each anniversary of the Effective Date thereafter, the employment period shall be extended by one year unless, at least six (6) months prior to such anniversary, the Company or Executive delivers a written notice (a “Notice of Non-Renewal”)to the other party that the employment period shall not be so extended (the Initial Term as from time to time extended or renewed, the “Employment Term”).

2.Agreement of Employment.  Effective as of the Effective Date, the Company agrees to, and hereby does, employ Executive, and Executive agrees to, and hereby does, accept continued employment by the Company, in a full-time capacity as Executive Vice President and Chief Marketing Officer pursuant to the provisions of this Agreement and of the bylaws of the Company, and subject to the control of the individual or individuals to whom Executive reports and the Board of Directors (the “Board”).

3.Executive's Obligations.  During the period of his or her service under this Agreement, Executive shall devote substantially all of his or her time and energy during business hours to the benefit of the Company's business.  Executive agrees to serve the Company diligently and to the best of his or her ability, and to follow the policies and directions of the Company.

Executive represents and warrants that he or she is not subject to any employment, severance, non-competition or other similar arrangement, and Executive agrees and covenants that the execution of this Agreement by Executive does not violate, conflict with, result in a breach of, or require any consent, waiver or approval under, any contract, arrangement or other agreement that Executive is a party to or by which Executive is bound by.

		
	4.
	Compensation.

1.Base Salary.  As compensation for all services performed by Executive under and during the Employment Term, the Company shall pay to Executive a base salary at the rate of $500,000 per year, in equal bi-weekly installments in accordance with its customary payroll practices.  The Human Resources Committee of the Board or any successor committee responsible for setting compensation levels for executives (the “ Committee”) shall, in good faith, review the salary of Executive, on an annual basis, with a view to consideration of appropriate merit increases (but not decreases) in such salary.  Such base salary, as may be increased from time to time, is hereafter referred to as the “Base Salary.” All payments will be subject to Executive's chosen benefit deductions and the deductions of payroll taxes and similar assessments as required by law.
2.Bonus.  Executive will participate in the Company's annual incentive bonus programs applicable to Executive's position, in accordance with the terms of such program(s), and shall have the oppo1tunity to earn an annual bonus thereunder based on the achievement of performance objectives determined by the Board.

If Executive dies or resigns pursuant to this Agreement or pursuant to any other agreement between the Company and Executive providing for such resignation during the period of this Agreement, service for any part of the month in which any such event occurs shall be considered service for the entire month.

5.Equity Award.  Executive is eligible for the grant of options (the “Options”) to purchase shares of common stock of the Company (the “Option Shares”) pursuant to the Caesars Entertainment Corporation Management Equity Incentive Plan dated as of February 27, 2008, as amended or any successor plan(s) (the “Opinion Plan”).  All grants of Options, if any, is subject to the review and approval of the Board or the Human Resources Committee of the Board, and Executive acknowledges and agrees that Executive has no right to the grant of any Options.

6.Benefits.  During the Employment Term, except as otherwise provided herein, Executive shall be entitled to participate in any and all incentive compensation and bonus arrangements maintained by the Company for its similarly-situated executives and to receive benefits and perquisites at least as favorable to Executive as those provided to similarly situated Executives of the Company.

1.Health Insurance.  Executive will receive the regular group health plan coverage(s) provided to similarly situated officers, which coverage(s) may be subject to generally applicable changes during the Employment Term, provided that such changes are generally applicable to similarly situated officers.  Executive will be required to contribute to the cost of the basic plan in the same manner as other similarly situated officers.

2.Long Term Disability Benefits.  Executive will be eligible to receive long term disability coverage paid by the Company in accordance with the terms of the Company’s policies.

3.Life Insurance.  Executive will receive life insurance paid by the Company in accordance with the terms of the Company's policies as in effect from time to time, which policies may be subject to changes during the Employment Term, provided that such changes are generally applicable to similarly situated officers.

4.Retirement Plan.  Executive will also be eligible during the Employment Term to participate in the Company's 401(k) Plan, as may be modified or changed.  In addition, Executive will also be eligible during the Employment Term to participate in the Company's deferred compensation plan, as may be modified or changed from time to time, in the same manner as other similarly situated officers of the Company.

5.Financial Counseling.  During the Employment Term, Executive will also receive financial counseling in accordance with the terms of the Company's policies as in effect from time to time, which policies may be subject to changes during the Employment Term, provided that such changes are generally applicable to similarly situated officers.

6.Vacation.  Executive will be entitled to paid vacation in accordance with the terms of the Company's policies, provided that Executive shall in all events be entitled to not less than four weeks' annual vacation.

7.Reimbursement of Expenses.  The Company shall pay, or will reimburse Executive for, reasonable business expenses incurred in the performance of Executive's duties hereunder in accordance with Company policy.

8.D&O Insurance.  The Company shall provide Executive with Director's and Officer's indemnification insurance coverage, in amount and scope that is customary for a company of the Company's size and nature, in accordance with the terms of the Company's policies as in effect from time to time, which policies may be subject to changes during the Employment Term, provided that such changes are generally applicable to similarly situated officers.

		
	9.
	Section 409A: Reimbursements: In-Kind Benefits.

(a)This Agreement is intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) (including the exceptions thereto), to the extent applicable, and the provisions of this Agreement will be administered, interpreted and construed accordingly.  If any provision contained in the Agreement conflicts with the requirements of Section 409A of the Code, the Agreement shall be deemed to be reformed so as to comply with the requirements of Section 409A of the Code (or the applicable exemptions thereto).  Notwithstanding anything to the contrary herein, to the extent permitted under Section 409A of the Code, each payment described under Section 8 or Exhibit A shall be deemed to be a separate payment for purposes of Section 409A of the Code.

(b)To the extent that any amount eligible for reimbursement or any in-kind benefit provided under this Agreement is deferred compensation subject to the requirements of Section 409A of the Code, the following rules shall apply:

(i)Payment of such reimbursements shall be made no later than the end of Executive's taxable year following the taxable year in which the expense is incurred;

(ii)All such amounts eligible for reimbursement or any in-kind benefit provided under this Agreement in one taxable year shall not affect the amount eligible for reimbursement or in-kind benefits to be provided in any other taxable year; and

(iii)The right to any such reimbursement or in-kind benefit hereunder shall not be subject to liquidation or exchange for any other benefit.
The parties intend that all reimbursements or in-kind benefits provided for hereunder will be made in a manner that makes such reimbursements and in-kind benefits consistent with or exempt from Section 409A of the Code.

		
	7.
	Severance Agreement.  Reserved.

8.Termination of Employment.  Except as expressly provided in Section 7 hereof, the following provisions shall govern Executive's rights to severance benefits (if any) upon a termination of his or her employment.

1.Termination Without Cause; Resignation for Good Reason; Company Failure to Renew.

(a)The Board reserves the right to terminate the Employment Term and Executive from his or her then current position without Cause at any time.  Executive reserves the right to terminate the Employment Term and resign from his or her position for Good Reason (as defined in Section 10.2 herein) by giving the Company thirty (30) days written notice which states the basis for such Good Reason.

(b)Upon (x) the Company's termination of Executive's employment without Cause, (y) a termination of Executive's employment due to the Company's delivery to Executive of a Notice of Non-Renewal in accordance with Section 1 hereof (it being understood and agreed that (1) the Company's obligations pursuant to this Section 8.l(b)(y) shall survive until fully discharged, notwithstanding the conclusion or expiration of the Employment Term and (2) for purposes of the Management Investor Rights Agreement, dated as of January 28, 2008, as amended, among Caesars Entertainment Corporation and the other parties thereto, the termination of Executive's employment with the Company due to the Company's delivery to Executive of a Notice of Non-Renewal  in accordance with Section 1 shall be treated as a termination of Executive's employment without Cause) or (z) Executive's resignation from his or her position for Good Reason as described in Section 8.l(a) above:

(i)The Company shall pay Executive, within thirty (30) days following his or her termination of employment, unreimbursed business expenses, Base Salary through the date of termination (to the extent not theretofore paid), and any prior year bonus earned by Executive (to the extent not theretofore paid) (the “Accrued Benefits”);

(ii)Subject to Executive executing and not revoking the release attached hereto as Exhibit B, the Company will pay Executive: (A) in approximately equal installments during the eighteen (18) month period following such termination (the “Severance Period”), a cash severance payment in an amount equal to1.5 multiplied by his or her Base Salary as in effect on the date of termination (the “Severance Payment”) and (B) at the time it pays annual bonuses to its similarly situated active officers (but not later than March 15 of the calendar year following Executive's termination of employment), a pro rated bonus for the year in which the termination of employment occurs if (x) as of the date of termination of employment, Executive has been employed with the Company for more than six (6) months, (y) the separation occurs after June 30 of the year in which the termination of employment occurs and (z) Executive is eligible to receive such bonus on the basis of actual performance in accordance with the terms of the applicable bonus plan.  Executive also will be entitled to receive the benefits set forth on Exhibit A hereto during the Severance Period.  Subject to the following sentence, the installments of the Severance Payment will be paid to Executive in accordance with the Company's customary payroll practices, and will commence on the first payroll date following the termination of Executive's employment, provided that the Severance Payments shall terminate if the release attached hereto as Exhibit B has not been executed and become irrevocable by Executive within thirty days after Executive's termination of employment. Notwithstanding the foregoing, if, as of the date of termination, Executive is a “specified employee” as defined in subsection (a)(2)(B)(i) of Section 409A of the Code (“Specified Employee”), installments of the Severance Payments will not commence, and payment of the pro rated bonus (if any) will not be made, until the first business day after the date that is six months following Executive's “separation from service” within the meaning of subsection (a)(2)(A)(i) of Section 409A of the Code (the “ Delayed Payment Date”) and, on the Delayed Payment Date, the Company will pay to Executive a lump sum equal to all amounts that would have been paid during the period of the delay if the delay were not required plus interest  on such amount at a rate equal to the short-te1m applicable federal rate then in effect, and will thereafter continue to pay Executive the Severance Payment in installments in accordance with this Section.  In addition, to the extent required in order to comply with Section 490A of the Code, until the Delayed Payment Date, Executive shall pay to the Company the fair market value of the benefits set forth on Exhibit A that are provided to Executive, and the Company shall reimburse the Executive for any such payment(s) on the Delayed Payment Date; and

(iii)Executive's Options and Option Shares will be treated in accordance with the terms of the Option Plan.

(a)Except as otherwise provided in this Agreement, and except for any vested benefits under any tax qualified pension plans of the Company and vested deferred compensation under any applicable deferred compensation plans, and continuation of health insurance benefits on the terms and to the extent required by Section 4980B of the Code and Section 601 of the Employee Retirement Income Security Act of 1974, as amended (which provisions are commonly known as “ COBRA”), neither the Company nor Executive shall have any additional obligations under this Agreement.

		
	2.
	Termination for Cause or Resignation Without Good Reason.

(a)The Company will have the right to terminate the Employment Term and Executive's employment with the Company at any time from his or her then-current positions for Cause (as defined in Section 10.l herein).  A resignation by Executive without Good Reason shall not be a breach of this Agreement.

(b)If the Employment  Term and Executive's  employment are terminated for Cause, or if he or she resigns from his or her position without Good Reason, then:
(i) Executive's employment shall be deemed terminated on the date of such termination or resignation; (ii) Executive shall be entitled to receive all Accrued Benefits from the Company within thirty (30) days following such termination; and (iii) his or her rights with respect to his or her Options and Option Shares will be as set forth in the Option Plan.

(c)Except as otherwise provided in this Agreement, and except for any vested benefits under any tax qualified pension plans of the Company and vested deferred compensation under any applicable deferred compensation plans, and continuation of health insurance benefits on the terms and to the extent required by COBRA, neither the Company nor Executive shall have any additional obligations under this Agreement.

		
	3.
	Death.

(a)In the event that the Employment Term and Executive's employment are terminated due to his or her death, (i) Executive's right to receive his or her Base Salary and benefits under this Agreement (other than the Accrued Benefits) will terminate, and his or her estate and beneficiary(ies) will receive the benefits they are entitled to receive under the terms of the Company's benefit plans and programs by reason of a participant's death during active employment, (ii) Executive's estate shall be entitled to receive all Accrued Benefits from the Company within thirty (30) days following such termination and (iii) Executive's Options and Option Shares will be treated in accordance with the terms of the Option Plan.  For the avoidance of doubt, Executive's estate shall be an express third party beneficiary of this provision, with the right to enforce the provision for and on behalf of Executive's beneficiary(ies).

(b)If Executive dies at a time when the Company owes Executive any Severance Payment(s) pursuant to Section 8.l(b), the Company shall pay such remaining Severance Payment(s) in a lump sum to Executive's estate.

(c)Except as otherwise provided in this Agreement, and except for any vested benefits under any tax qualified pension plans of the Company and vested deferred compensation under any applicable deferred compensation plans, and continuation of health insurance benefits on the terms and to the extent required by COBRA, neither the Company nor Executive shall have any additional obligations under this Agreement.

		
	4.
	Disability.

(a)If the Employment Term and Executive's employment  are terminated by reason of Executive's disability (as defined below), he or she will be entitled to apply, at his or her option, for the Company's long-term disability benefits and, if he or she is accepted for such benefits, then Executive's Options and Option Shares will be treated in accordance with the terms of the Option Plan, and the terms and provisions of the Company's benefit plans and programs that are applicable in the event of such disability of an employee shall apply in lieu of the salary and benefits under this Agreement, except that:

(i)Executive will be paid his or her Accrued Benefits within thirty (30) days of termination; and

(ii)Executive will receive eighteen (18) months of Base Salary continuation (the “ Salary Continuation Payment”), offset by any long term disability benefits to which he or she is entitled during such period of salary continuation.  In addition to payment of his or her Base Salary, Executive will be entitled to all benefits during the salary continuation period. Notwithstanding  the foregoing, if, as of the date of termination pursuant to this Section 8.4, Executive is a Specified Employee, 

installments of the Salary Continuation Payment will not commence until the Delayed Payment Date and, on the Delayed Payment Date, the Company will pay to Executive a lump sum equal to all amounts that would have been paid during the period of the delay if the delay were not required plus interest on such amount at a rate equal to the short-term applicable federal rate then in effect, and will thereafter continue to pay Executive the Salary Continuation Payment in installments in accordance with this Section.

(b)If Executive is disabled so that he or she cannot perform his or her duties, then the Company may terminate his or her duties under this Agreement after giving Executive thirty (30) days' notice of such termination (during which period Executive shall not have returned to full time performance of his or her duties).  For purposes of this Agreement, disability will be the inability of Executive, with or without a reasonable accommodation, to perform the essential functions of his or her job for one hundred and eighty (180) days during any three hundred and sixty five (365) consecutive calendar day period as reasonably determined by the Committee (excluding Executive) based on independent medical advice from a physician who has examined Executive (such physician to be selected by the Company and reasonably acceptable to Executive).

(c)Except as otherwise provided in this Agreement, and except for any vested benefits under any tax qualified pension plans of the Company and vested deferred compensation under any applicable deferred compensation plans, and continuation of health insurance benefits on the terms and to the extent required by COBRA, neither the Company nor Executive shall have any additional obligations under this Agreement.

9.Voluntary Termination Notice Period. Executive may terminate this Agreement at any time for any or no reason during its term upon thirty (30) days’ prior written notice to the Company, except as specified in this Section.  If Executive is going to work or act in competition with the Company or its affiliates as described in Section 11 of this Agreement, Executive must give the Company six (6) months’ prior written notice of his or her intention to do so.  The written notice provided by Executive shall specify the last day to be worked by Executive (the “Separation Date”), which Separation Date must be at least thirty (30) days or up to six (6) months (as appropriate) after the date the notice is received by the Company (it being understood that Executive shall not work or act in competition with the Company or its affiliates as described in Section 11 of this Agreement for the six (6) month period following delivery of the written notice referenced in the immediately preceding sentence without the prior written consent of the Company).  Unless otherwise specified herein, or in a writing executed by both parties, Executive shall not receive any of the benefits provided in this Agreement after the Separation Date except for applicable rights and benefits that apply to employees generally after their termination of employment.

		
	10.
	Definitions of Cause and Good Reason.

1.(a)  For purposes of this Agreement, “Cause” shall mean:

(i)The willful failure of Executive to substantially perform Executive's duties with the Company (as described in Section 2 and Section 3) or to follow a lawful, reasonable directive from the Board or the chief executive officer of the Company ("CEO") or such other executive officer to whom Executive reports (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to Executive by the Board (or the CEO, as applicable) which specifically identifies the manner in which the Board (or the CEO, as applicable) believes that Executive has willfully not substantially performed Executive's duties or has willfully failed to follow a lawful, reasonable directive, except that such written demand shall not be required in situations that qualify under section (ii), below;

(ii)Any willful and gross violation by Executive of written Company policy, as determined by the Board, after a thorough investigation by the Company's Human Resources, Law, or Internal Audit Departments, or such third party as the Board deems appropriate to investigate the matter;

(iii)(A) Any willful act of fraud, or embezzlement or theft, by Executive, in each case, in connection with Executive's duties hereunder or in the course of Executive's employment hereunder or (B) Executive's admission in any court, or conviction of, or plea of nolo contendere to, a felony;

(iv)Executive being found unsuitable for or having a gaming license denied or revoked by the gaming regulatory authorities in any jurisdiction in which the Company,  Caesars Entertainment Corporation or any of their respective subsidiaries or affiliates conducts gaming operations;

(v)(A) Executive's willful and material violation of, or noncompliance with, any securities laws or stock exchange listing rules, including, without limitation, the Sarbanes­ Oxley Act of 2002, provided that such violation or 

noncompliance resulted in material economic harm to the Company, or (B) a final judicial order or determination prohibiting Executive from service as an officer pursuant to the Securities and Exchange Act of 1934 or the rules of the New York Stock Exchange or Nasdaq (as applicable); or Agreement.

(vi)A willful breach by Executive of Section 11 or Section 12 of this

(b)    For purposes of this Section 10, no act or failure to act on the part of Executive, shall be considered "willful" unless it is done, or omitted to be done, by Executive in bad faith and without reasonable belief that Executive's action or omission was in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by Executive in good faith and in the best interests of the Company.  The cessation of employment of Executive shall not be deemed to be for Cause unless and until Executive has been provided with written notice of the claim(s) against him or her under the above provision(s) and a reasonable opportunity (not to exceed thirty (30) days) to cure, if possible, and to contest said claim(s) before the Board.

2.For purposes of this Agreement, “Good Reason” shall mean, without Executive's express written consent, the occurrence of any of the following circumstances unless such circumstances are fully corrected prior to the date of termination specified in the written notice given by Executive notifying the Company of his or her intention to terminate his or her Employment for Good Reason:

(a)A reduction by the Company in Executive's annual Base Salary, as the same may be increased from time to time pursuant to Section 4.1 hereof, other than a reduction in base salary that applies to a similarly situated class of employees of the Company or its affiliates;

(b)Any material diminution in the duties or responsibilities of Executive as of the date hereof; provided that a change in control of the Company that results in the Company becoming part of a larger organization will not, in and of itself and unaccompanied by any material diminution in the duties or responsibilities of Executive, constitute Good  Reason;

(c)(i) The failure by the Company to pay or provide to Executive any material portion of his or her then current Base Salary or then current benefits hereunder (except pursuant to a compensation deferral elected by Executive) or (ii) the failure to pay Executive any material portion of deferred compensation under any deferred compensation program of the Company within thirty (30) days of the date such compensation is due and permitted to be paid under Section 409A of the Code, in each case other than any such failure that results from a modification to any compensation arrangement or benefit plan that is generally applicable to similarly situated officers;

(d)The Company's requiring Executive to be based anywhere other than Las Vegas, Nevada or within twenty-five miles thereof (except for required travel on the Company's business to an extent substantially consistent with Executive's present business travel obligations); or

(e)The Company's failure to obtain a satisfactory agreement from any successor to assume and agree to perform this Agreement, as contemplated in Section 16 hereof.

		
	11.
	Non-Competition Agreement.

11.1    During the Employment Term (so long as Executive remains employed by the Company or its affiliates) and for a period following the termination of Executive's employment with the Company and its affiliates equal to the Non-Compete Period (as defined below), he or she will not, directly or indirectly, engage in any activity, including development activity, whether as an employer, employee, consultant, director, investor, contractor, or otherwise, directly or indirectly, which is in competition with the casino, casino/hotel and/or casino/resort businesses conducted by the Company or any of its subsidiaries or affiliates in the United States, Canada or Mexico or such other location that the Company or an affiliate of the Company conducts significant business operations (a) with respect to periods prior to the termination of Executive's employment with the Company and its affiliates, at any time during Executive's active employment period and (b) with respect to periods following the termination of Executive's employment with the Company and its affiliates, at any time during the twelve months preceding the termination of Executive's employment with the Company and its affiliates.  Notwithstanding anything herein to the contrary, this Section 11.1 shall not prevent Executive from: (i) acquiring securities representing not more than 1% of the outstanding voting securities of any entity the securities of which are traded on a national securities exchange or in the over the counter market; or (ii) obtaining employment in the hotel/resort industry for an entity that does not 

engage in the casino business.  Executive acknowledges that the restrictions described above are reasonable as to both time and geographic scope, as the Company competes for customers with all gaming establishments in these areas.  For purposes of this Agreement, “Non-Compete Period” shall mean the following: (w) if the Executive has voluntarily terminated employment with the Company without Good Reason, the notice period under Section 9 (including for the avoidance of doubt, the six-month notice period in the event Executive is  going to work or act in competition with the Company as described in this Section 11); (x) (1) if the Company has terminated Executive's employment with the Company without Cause, (2) if Executive has terminated employment with the Company with Good Reason or (3) if the Company delivers to Executive a Notice of Non-Renewal  in accordance with Section 1, the period during which the Company is obligated to pay Executive severance pursuant to Section 8.1, (y) if the Company has terminated Executive's employment with the Company for Cause, six (6) months, or (z) if the Executive's employment with the Company is terminated due to disability, the salary continuation period pursuant to Section 8.4.

1.If Executive breaches any of the covenants in Section 11.1, then the Company may terminate any of his or her rights under this Agreement, whereupon all of the Company's obligations under this Agreement shall terminate without further obligation to him or her except for obligations that have been paid (except as otherwise provided in Section 11.6), accrued or are vested as of or prior to such termination date.  In addition, the Company shall be entitled to seek to enforce any such covenants, including obtaining monetary damages, specific performance and injunctive relief.  Executive's Options and Option Shares will be treated in accordance with the terms of the Option Plan.

2.During the Employment Term (so long as Executive remains employed by the Company or its affiliates) and for a period of eighteen (18) months following the termination of Executive's employment with the Company and its affiliates, Executive will not, directly or indirectly hire, induce, persuade or attempt to induce or persuade, any Salary Grade 10 or higher employee of the Company or its subsidiaries, to leave or abandon employment with the Company, its subsidiaries or affiliates, for any reason whatsoever (other than Executive's personal secretary and/or assistants).

3.During the Employment Term (so long as Executive remains employed by the Company or its affiliates) and for a period of eighteen (18) months following the termination of Executive's employment with the Company and its affiliates, Executive will not communicate with employees, customers, or suppliers of the Company, or its subsidiaries or affiliates of the Company or any principals or employee thereof, or any person or organization in any manner whatsoever that is detrimental to the business interests of the Company, its subsidiaries or affiliates.  Executive further agrees from the end of Executive's full-time employment with the Company and its affiliates not to make statements to the press or general public with respect to the Company or its subsidiaries or affiliates that are detrimental to the Company, its subsidiaries, affiliates or employees without the express written prior authorization of the Company, and the Company agrees that it will not make statements to the press or general public with respect to Executive that are detrimental to him or her without the express written prior authorization of Executive.  Notwithstanding the foregoing, Executive shall not be prohibited at the expiration of the non-competition period from pursuing his or her own business interests that may conflict with the interests of the Company.

4.Each of Executive and the Company intends and agrees that if, in any action before any court, agency or arbitration tribunal legally empowered to enforce the covenants in this Section 11, any term, restriction, covenant or promise contained herein is found to be unreasonable and, accordingly, unenforceable, then such term, restriction, covenant or promise shall be deemed modified to the extent necessary to make it enforceable by such court, agency or arbitration tribunal.

5.Should any court, agency or arbitral tribunal legally empowered to enforce the covenants contained in this Section 11 find that Executive has breached the terms,  restrictions, covenants or promises herein in any material respect (except to the extent it has been modified to make it enforceable): (a) the Company will not be obligated to continue to pay Executive the salary or benefits provided for under the severance provisions contained in the Agreement (including all required benefits under benefit plans), and (b) Executive will reimburse the Company any severance benefits received after the date of termination as well as any reasonable costs and attorney fees necessary to secure such repayments.  For the avoidance of doubt, the Company shall be entitled to money damages and/or injunctive relief due to Executive's breach of the terms, restrictions, covenants or promises contained in this Section 11 without regard to whether or not such breach is material, it being understood that the limiting effect of the phrase “in any material respect” in the immediately preceding sentence shall operate solely with respect to the remedies available pursuant to this Section 11.6.

6.For the avoidance of doubt, for purposes of this Section 11, “Executive's employment” shall not include any period of salary continuation hereunder.

7.This Section and all of its provisions will survive Executive's separation from employment for any reason.

		
	12.
	Confidentiality.

1.Executive's position with the Company will or has resulted in his or her exposure and access to confidential and proprietary information which he or she did not have access to prior to holding the position, which information is of great value to the Company and the disclosure of which by him or her, directly or indirectly, would be irreparably injurious and detrimental to the Company.  During his or her term of employment and without limitation thereafter, Executive agrees to use his or her best efforts and to observe the utmost diligence to guard and protect all confidential or proprietary information relating to the Company from disclosure to third parties.  Executive shall not at any time during and after the end of his or her full-time active employment, make available, either directly or indirectly, to any competitor or potential competitor of the Company or any of its subsidiaries, or their affiliates, or divulge, disclose, communicate to any firm, corporation or other business entity in any manner whatsoever, any confidential or proprietary information covered or contemplated by this Agreement, unless expressly authorized to do so by the Company in writing.  Notwithstanding the above, Executive may provide such Confidential Information if ordered by a federal or state court, arbitrator or any governmental authority, pursuant to subpoena, or as necessary to secure legal and financial counsel from third party professionals or to enforce his or her rights under this Agreement.  In such cases, Executive will use his or her reasonable best efforts to notify the Company, at least five (5) business days prior to providing such information, including the nature of the information required to be provided.

2.For the purpose of this Agreement, “Confidential Information” shall mean all information of the Company, its subsidiaries and affiliates relating to, or useful in connection with, the business of the Company, its subsidiaries and affiliates, whether or not a “trade secret” within the meaning of applicable law, which is not generally known to the general public and which has been or is from time to time disclosed to, or developed by, Executive as a result of his or her employment with the Company.  Confidential Information includes, but is not limited to, the Company's product development and marketing programs, data, future plans, formula, food and beverage procedures, recipes, finances, financial management systems, player identification systems (Total Rewards), pricing systems, client and customer lists, organizational charts, salary and benefit programs, training programs, computer software, business records, files, drawings, prints, prototyping models, letters, notes, notebooks, reports, and copies thereof, whether prepared by him, her or others, and any other information or documents which Executive is told or reasonably ought to know that the Company regards as confidential.

3.Executive agrees that upon separation from employment for any reason whatsoever, he or she shall promptly deliver to the Company all Confidential Information, including but not limited to documents, reports, correspondences, computer printouts, work papers, files, computer lists, telephone and address books, rolodex cards, computer tapes, disks, and any and all records in his or her possession (and all copies thereof) containing any such Confidential Information, and all items created in whole or in part by Executive within the scope of his or her employment even if the items do not contain Confidential Information.

4.Executive shall also be required to sign a non-disclosure or confidentiality agreement if Executive is not currently a party to such an agreement with the Company.  Such agreement shall also remain in full force and effect, provided that, in the event of any conflict between any such agreement(s) and this Agreement, this Agreement shall control.  The form of non-disclosure or confidentiality agreement is attached hereto as Exhibit C.

5.This Section and all of its provisions will survive Executive's separation from employment for any reason.

13.Injunctive Relief.  Executive acknowledges and agrees that the terms provided in Sections 11 and 12 are the minimum necessary to protect the Company, its affiliates and subsidiaries, and their successors and assigns, in the use and enjoyment of the Confidential Information and the good will of the business of the Company.  Executive further agrees that damages cannot fully and adequately compensate the Company in the event of a breach or violation of the restrictive covenants set forth herein and that without limiting the right of the Company to pursue all other legal and equitable remedies available to it, the Company shall be entitled to seek injunctive relief, including but not limited to a temporary restraining order, preliminary injunction and permanent injunction, to prevent any such violations or any continuation of such violations for the protection of the Company.  The granting of injunctive relief will not act as a waiver by the Company of its right to pursue any and all additional remedies.

14.Post Employment Cooperation.  Executive agrees that upon separation for any reason from the Company, Executive will cooperate in assuring an orderly transition of all  matters being handled by him or her.  Upon the Company providing reasonable notice to him or her, he or she will also appear as a witness at the Company's request and/or assist the Company  in any litigation, bankruptcy or similar matter in which the Company or any affiliate thereof is a party or otherwise 

involved.  It is understood and agreed that any such appearances and/or assistance shall be of reasonable scope and duration and shall not materially interfere with Executive's employment or business obligations.  The Company will pay any reasonable out-of­ pocket expenses incurred by Executive in connection with any such appearance or assistance.  In connection therewith, the Company agrees to indemnify Executive as prescribed in Article Tenth of the Certificate of Incorporation, as amended, of the Company and to the fullest extent permitted under applicable law.

15.Release.  Upon the termination of Executive's active full-time employment, and in consideration of and as a condition to the actual receipt of all compensation and benefits described in this Agreement (including without limitation any severance payments pursuant to this Agreement or any Severance Agreement), except for claims arising from the covenants, agreements, and undertakings of the Company as set forth herein and except as prohibited by statutory language, Executive and the Company will enter into an agreement which forever and unconditionally waives and releases Caesars Entertainment Corporation, Caesars Entertainment Operating Company, Inc., their subsidiaries and affiliates, and their officers, directors, agents, benefit plan trustees, and employees from any and all claims, whether known or unknown, and regardless of type, cause or nature (including claims arising under all salary, vacation, insurance, bonus, stock, and all other benefit plans), and all state and federal anti-discrimination, civil rights and human rights laws, ordinances and statutes, including Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act, concerning Executive's employment with Caesars Entertainment Corporation its subsidiaries and affiliates, the cessation of that employment and Executive's service as a shareholder, employee, officer and director of the Company and its subsidiaries.  The form of release is set forth in Exhibit B.

16.Assumption of Agreement on Merger, Consolidation or Sale of Assets.  In the event the Company agrees to (a) enter into any merger or consolidation with another company in which the Company is not the surviving company or (b) sell or dispose of all or substantially all of its assets, and the company which is to survive fails to make a written agreement with Executive to either: (1) assume the Company's financial obligations to Executive under this Agreement or (2) make such other provision for Executive as is reasonably satisfactory to Executive, then Executive shall have the right to resign for Good Reason as defined under this Agreement.

17.Assurances on Liquidation.  The Company agrees that until the termination of this Agreement as above provided, it will not voluntarily liquidate or dissolve without first making a full settlement or, at the discretion of Executive, a written agreement with Executive satisfactory to and approved by him or her in writing, in fulfillment of or in lieu of its obligations to him or her under this Agreement.
18.Amendments; Entire Agreement.  This Agreement may not be amended or modified orally, and no provision hereof may be waived, except in a writing signed by the pai1ies hereto. This Agreement and the Option Plan and, to the extent expressly provided herein, the Severance Agreement (as modified herein), contain the entire agreement between the parties concerning the subject matter hereof and supersede all prior agreements and understandings, written and oral, between the parties with respect to the subject matter of this Agreement and the Option Plan, including without limitation the Prior Employment Agreement.

		
	19.
	Assignment.

19.l    Except as otherwise provided in Section 19.2, this Agreement cannot be assigned by either party hereto, except with the written consent of the other.  Any assignment of this Agreement by either party shall not relieve such pai1y of its or his or her obligations hereunder.

19.2    The Company may elect to perform any or all of its obligations under this Agreement through a subsidiary or affiliate, and if the Company so elects, Executive will be an employee of such subsidiary or affiliate.  Notwithstanding any such election, the Company's obligations to Executive under this Agreement will continue in full force and effect as obligations of the Company, and the Company shall retain primary liability for their performance.

20.Binding Effect.  This Agreement shall be binding upon and inure to the benefit of the personal representatives and successors in interest of the Company.

21.Governing Law.  This Agreement shall be governed by the laws of the State of Nevada as to all matters, including but not limited to matters of validity, construction, effect and performance.

22.Jurisdiction.  Any judicial proceeding seeking to enforce any provision of, or based on any right arising out of, this Agreement or any agreement identified herein may be brought only in state or federal courts of the State of Nevada, and by the execution and delivery of this Agreement, each of the parties hereto accepts for themselves the exclusive jurisdiction of the aforesaid courts and irrevocably consents to the jurisdiction of such courts (and the appropriate appellate courts) in 

any such proceedings, waives any objection to venue laid therein and agrees to be bound by the judgment rendered thereby in connection with this Agreement or any agreement identified herein.

23.Notices.  Any notice to be given hereunder by either party to the other may be effected by personal delivery, in writing, or by mail, registered or certified, postage prepaid with return receipt requested.  Mailed notices shall be addressed to the parties at the addresses set forth below, but each party may change his, her or its address by written notice in accordance
with this Section 24.  Notices shall be deemed communicated as of the actual receipt or refusal of receipt.
If to Executive:

2628 Broadway #35A New York, NY 10025

And to:

If to Company:            Caesars Entertainment Operating Company, Inc.
One Caesars Palace Drive Las Vegas, NV  89109 Attn: General Counsel

24.Construction.  This Agreement is to be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties.

25.Severability.  If any provision of this Agreement shall be determined by a court to be invalid or unenforceable, the remaining provisions bf this Agreement shall not be affected thereby, shall remain in full force and effect, and shall be enforceable to the fullest extent permitted by applicable law.

26.Withholding Taxes.  Any payments or benefits to be made or provided to Executive pursuant to this Agreement shall be subject to any withholding tax (including social security contributions and federal income taxes) as shall be required by federal, state, and local withholding tax laws.

27.Counterparts.  This Agreement may be executed by the parties in any number of counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same agreement.

[Signature Page Follows]

IN WITNESS WHEREOF, Executive has hereunto set his or her hand and the Company has caused this Agreement to be executed in its name and on its behalf and its corporate seal to be hereunto affixed and attested by its corporate officers thereunto duly authorized.

 /s/ Tariq Shaukat________________________________
  Executive

Caesars Entertainment Operating Company, Inc.

 By: /s/ Mary Thomas_____________________________
 Name:  Mary Thomas____________________________
 Its: EVP Human Resources________________________

Exhibit A

		
	•
	Medical Insurance (including health, dental and vision), provided that to the extent such coverage is subject to Section 105(h) of the Code, the Company shall instead pay to Executive during the Severance Period a monthly cash payment equal, on an after tax basis, to the cost of COBRA coverage for the highest level of family coverage available under the applicable group health plans(s).  Such payments shall be subject to the third sentence of Section 8.l(b)(ii) of this Agreement as if they were Severance Payments and shall be treated and paid (together with interest) in a corresponding manner.

		
	•
	Life Insurance and accidental death and dismemberment insurance

		
	•
	Accrued benefits under savings and retirement plan

		
	•
	D&O Insurance

		
	•
	Financial Counseling (in accordance with Company policy, maximum benefit is funds allocated as of termination of employment - no new funds)

Exhibit B

GENERAL RELEASE

THIS GENERAL RELEASE (the "Release") is entered into between Caesars Entertainment Operating Company, Inc. (the "Company") and Tariq M. Shaukat (the "Employee") as of the    day of ___________. The Company and the Employee agree as follows:

1.Employment Status.  The Employee's employment with the Company shall terminate effective as of _______________, _________ (the "Separation Date").

2.Payment and Benefits.  Upon the effectiveness of the terms set forth herein, the Company shall provide the Employee with all of the applicable payments and benefits set forth in the Employment Agreement between the Company and the Employee, dated as of ______(as amended from time to time, the "Employment Agreement").

3.No Liability.  This Release does not constitute an admission by the Company, or any of its subsidiaries, affiliates, divisions, trustees, officers, directors, partners, agents, or employees, or by the Employee, of any unlawful acts or of any violation of federal, state or local laws.

4.Release.  In consideration of the payments and benefits set forth in Section 8.1 (Termination Without Cause; Resignation for Good Reason; Company Failure to Renew) of the Employment Agreement, the Employee for himself, his heirs, administrators, representatives, executors, successors and assigns (collectively, "Employee Releasors") does hereby irrevocably and unconditionally release, acquit and forever discharge the Company and each of its subsidiaries, affiliates, divisions, successors, assigns, trustees, officers, directors, partners,  agents, and former and current employees, including without limitation all persons acting by, through, under or in concert with any of them, including without limitation the Sponsors (as defined in the Management Investor Rights Agreement, dated as of January 28, 2008, as amended, among the Company, Employee and the other parties specified therein) (collectively, "Company Releasees"), and each of them from any and all charges, complaints, claims, liabilities, obligations, promises, agreements, controversies, damages, remedies, actions, causes of action, suits, rights, demands, costs, losses, debts and expenses (including attorneys' fees and costs) of any nature whatsoever, known or unknown, whether in law or equity and whether arising under federal, state or local law and in particular including any claim for discrimination based upon race, color, ethnicity, sex, national origin, religion, disability age (including without limitation under the Age Discrimination in Employment Act of 1967 as amended by the Older Workers Benefit Protection Act ("ADEA''), Title VII of the Civil Rights Act of 1964 as amended by the Civil Rights Act of 1991, the Equal Pay Act of 1962, and the Americans with Disabilities Act of 1990) or any other unlawful criterion or circumstance, which Employee Releasors had, now have, or may have or claim to have in the future against each or any of the Company Releasees by reason of any matter, cause or thing occurring, done or omitted to be done from the beginning of the world until the date of the execution of this Release; provided, however, that nothing herein shall release (i) any obligation of Company under Section 8 (Termination of Employment), Section 18 (Amendments; Entire Agreement) or Section 22 (Jurisdiction) of the Employment Agreement, (ii) any right of indemnification or to director and officer liability insurance coverage under any of the company's organizational documents or at law under any plan or agreement and applicable to the Employee, or (iii) any vested rights of the Employee and/or his or her dependents and beneficiaries under the Company's and its affiliates' benefit plans, programs, and policies.

In addition, nothing in this Release is intended to interfere with the Employee's right to file a charge with the Equal Employment Opportunity Commission in connection with any claim the Employee believes he may have against the Company Releasees.  However, by executing this Release, the Employee hereby waives the right to recover in any proceeding that the Employee may bring before the Equal Employment Opportunity Commission or any state human rights commission or in any proceeding brought by the Equal Employment Opportunity Commission or any state human rights commission on the Employee's behalf.  In addition, this release is not intended to interfere with the Employee's right to challenge that his waiver of any and all ADEA claims pursuant to this Release is a knowing and voluntary waiver, notwithstanding the Employee's specific representation to the Company that he has entered into this Agreement knowingly and voluntarily.

As of the Separation Date, Employee acknowledges and represents that Employee has not been either directly or indirectly involved in, witnessed or asked or directed to participate in any conduct that could give rise to an allegation that the Company or any of its subsidiaries or affiliates has violated any laws applicable to its businesses or that could otherwise be construed as inappropriate or unethical in any way, even if such conduct is not, or does not appear to be, a violation of any law.  Employee confirms that Employee has been given the opportunity to report such conduct to the Company and to third parties and that Employee has not made such report. Employee also confirms that Employee has no charge, complaint or action against 

the Company or any Company Releasees in any forum or form.

5.Bar.  The Employee acknowledges and agrees that if he should hereafter make any claim or demand or commence or threaten to commence any action, claim or proceeding against the Company Releasees with respect to any cause, matter or thing which is the subject of the release under Paragraph 4 of this Release (other than a claim brought under ADEA), this Release may be raised as a complete bar to any such action, claim or proceeding, and the applicable Company Releasee may recover from the Employee all costs incurred in connection with such action, claim or proceeding, including attorneys' fees.

6.Restrictive Covenants.  The Employee acknowledges that the provisions of Section 11 (Non-Competition Agreement) through Section 14 (Post Employment Cooperation), inclusive, of the Employment Agreement shall continue to apply pursuant to their terms.

7.Governing Law.  This Release shall be governed by and construed in accordance with the laws of the State of Nevada, without regard to conflicts of laws principles.

8.Acknowledgment.  The parties hereto have read this Release, understand it, and voluntarily accept its terms, and the Employee acknowledges that he has been advised by Company to seek the advice of legal counsel before entering into this Release, and has been provided with a period of twenty-one (21) days in which to consider entering into this Release.

9.Revocation. The Employee has a period of seven (7) days following the execution of this Release during which the Employee may revoke this Release, and this Release shall not become effective or enforceable until such revocation period has expired. If within the ten (10) day period following such expiration, Company fails to execute this Release, then this Release shall become null and void and have no force or effect.

10.Counterparts.  This Release may be executed by the parties hereto in counterparts, which taken together shall be deemed one original.

[REMAINDER OF PAGE INTENTIONALLY  LEFT BLANK]

IN WITNESS WHEREOF, Executive has hereunto set his or her hand and the Company has caused this Release to be executed in its name and on its behalf and its corporate seal to be hereunto affixed and attested by its corporate officers thereunto duly authorized.

            _____________________________________
            Employee

             Caesars Entertainment Operating Company, Inc.

            By: ___________________________________
                     Name: ________________________________
                     Its: ___________________________________

Exhibit C

EMPLOYEE'S AGREEMENT 
(CONCERNING PROTECTED AND CONFIDENTIAL 
COMPANY INFORMATION AND MATERIALS)

In consideration of, and as a condition precedent to, my employment and/or continued employment, with Caesars Entertainment Operating Company, Inc., or one of its direct or indirect subsidiaries (hereinafter referred to jointly as the "Company"), and for other good and valuable consideration, including but not limited to any future, additional compensation, bonus, stock options, 401(k) matching contributions and other benefits, I hereby specifically agree as follows:

1.I recognize that the Company is engaged in the business of developing, owning and/or managing casinos and related hotels, as well as other gaming related activity. I understand that the Company has developed and is the owner of certain commercially valuable technical and non-technical information, which is not public knowledge, which is a valuable asset essential to and used in the business of the Company. A non-exhaustive list of examples of such Confidential Information is: computer programs including software related documentation, source codes, object codes, technical plans, processes, methods, practices, algorithms and the reports derived from such processes, manuals and databases; internal financial data; marketing programs, strategies and campaigns; internal manuals; new product development plans and ideas; lists of customers, including those lists obtained and maintained by the Company during my employment; and designs, blueprints, architectural plans and engineering data. I acknowledge that the Confidential Information is proprietary to the Company and that, as such, some of the information, including but not limited to that involving computer programs, is treated as a trade secret by the Company and is also protected by certain copyright laws. I recognize and agree that the Company is engaged in a highly competitive industry and that the maintenance of the secret nature of this information is essential to preserving its value to the Company; that disclosure of any of this information would be detrimental to and cause substantial harm to the Company; and that as I have or may have access to or be informed of such information during the course of my employment, that I am obligated to and will safeguard all such information during my employment with the Company. I further agree that I will not duplicate, reverse engineer, alter, replicate or modify the Confidential Information or any part of the Confidential Information made available to me nor disclose to any third  party  any Confidential Information.

2.In addition to the information developed and owned by the Company that is confidential, I also understand that certain information received from third parties is also confidential and proprietary. Third parties may include, but not be limited to, any and all tribal entities, business enterprises, or other organizations or individuals who have relationships with the Company. To this end, any information received by me from third parties during any furtherance of my obligations as an employee of the Company which concerns the personal, financial, or other affairs of the third party will be treated in full confidence and will not be revealed to any other persons, forms, or organizations and shall be governed by this Agreement in the same manner as the Company's confidential and proprietary information.

3.I agree that any work, invention, innovation, idea or report that I produce in connection with my work for the Company, or which results from or is suggested by the work I do for or on behalf of the Company is a "work for hire", and will be the sole property of the Company. (Such work, inventions, innovations, ideas, and reports are referred to as the "Work".) The foregoing applies whether or not the Work was conceived or performed during Company hours or on Company equipment. I agree that I will execute all necessary documents or take other actions necessary to assist the Company in obtaining patents, copyrights or other legal protection of the Work for the Company's benefit (although the Work will be the exclusive property of the Company whether or not patented or copyrighted).

4.I will not at any time, directly or indirectly, either during my employment or for two years thereafter, disclose to any person, corporation or other entity which offers any product or service which is, in any way, in competition with any product or service offered by the Company, or use in competition with the Company, any of the Company's confidential or proprietary information, except on behalf of the Company, without first obtaining the Company's written consent thereto, which consent can be given only by a duly authorized officer of the Company.

5.Upon the termination of my employment for any reason whatsoever, I will promptly deliver to the Company all documents, computer software, files, databases, drawings, prints, prototypes, models, manuals, letters, lists, notes, notebooks, reports and copies thereof, whether prepared by me or others, all other material of a secret, confidential or proprietary nature relating to the Company's business, and any other document relating or referring to such material.

6.If I am or become an employee of the Company in Salary Grade 10 or above (manager or above), I recognize that both I and all others in Salary Grade 10 or above (manager or above) are key employees of the Company who have special and unique knowledge of the Company's operations and personnel and who, as a result of those and other factors, occupy positions of trust and responsibility which bring with them a special duty of care and loyalty to the Company.  I recognize that the Company has substantial good will in the casino gaming industry which reaches beyond the Company location at which I am currently employed.  I also recognize that the Company has spent substantial time and has incurred substantial expense in maintaining and creating customer good will among its manager-level employees; that the training, experience, skills and unique knowledge of the Company's operation are an integral part of, and are necessary for, an efficient, profitable operation; and that, therefore, the Company has  a protectable business interest in maintaining these employees.  I understand that my solicitation of any manager-level employee, with whom I have had a reporting relationship (up or down) or other direct contact or association while employed by the Company or thereafter, for employment at a casino and/or related hotel which competes with the Company in the gaming business would cause detrimental and irreparable harm to the Company.  Accordingly, neither during my employment with the Company nor for eighteen (18) months following the cessation of that employment will I either directly or indirectly induce, persuade, solicit, or attempt to induce or persuade any Company employee in Salary Grade 10 or above (manager or above)  as described above in this paragraph to leave or abandon his/her employment with the Company for employment at a casino and/or related hotel which competes with the Company in the gaming business.  I understand that such inducement, persuasion and/or solicitation includes, but is not limited to, recommending that the manager-level employee contact any person affiliated with a competitor of the Company in the gaming business.

7.I understand and agree that a breach by me of any of the obligations set forth above will cause the Company to suffer irreparable harm. Accordingly, I understand and agree that if I breach any of my obligations set forth above, the Company has the right to petition a court for, and to obtain therefrom, an injunction enjoining me from breaching any such obligations. I further understand and agree that, to the extent that they can be proven by the Company, I will be liable for such monetary damages as a result from any breach by me of my obligations set forth above prior to such breach being enjoined by the Company.

8.The Company's rights and my obligations created by this Agreement are intended to be in addition to, and not in limitation of, any obligation I may have, or right the Company may have, under otherwise applicable law. This Agreement replaces any prior "Employee's Agreement (Concerning Protected and Confidential Information and Materials)." Also, this Agreement and the obligations referred to herein are separate from and in addition to any other obligations I may have to the Company. I understand that I have an affirmative obligation to advise any future employer of mine of the existence of this Agreement and to provide said employer with a copy of the Agreement; and that the Company may also advise and provide any future employer a copy of this Agreement. I specifically acknowledge that both my obligations and the Company's remedies hereunder are fair and reasonable.

9.If any provision of this Agreement is held to be unenforceable,  I understand and agree that such unenforceability shall not affect any other provision hereof and that the remainder of the Agreement shall be enforceable.  I also agree that the Company may assign its rights under this Agreement to any parent, subsidiary, or affiliate or to any successor entity that becomes my employer through any merger, spin-off, reorganization or restructuring.

10.I agree that this Agreement shall be governed by and construed under the laws of the State of Nevada (where employed), and I hereby consent to the jurisdiction of the courts of the State of Nevada (where employed) in any action brought by the Company to enforce this Agreement. I further agree that I will pay all costs and expenses, including reasonable attorneys fees, incurred by the Company in enforcing any of my obligations under this Agreement.

[Signature Page Follows]

            COMPANY                            EMPLOYEE

/s/ Mary Thomas                            Printed:  Tariq M. Shaukat                

By: /s/ Mary Thomas                        Signed: /s/ Tariq Shaukat                

Date: March 22, 2012                        Date: March 20, 2012                

ACKNOWLEDGEMENT

The undersigned hereby acknowledges that he/she has received, read and understands  the Caesars Entertainment Operating Company,  Inc., or one of its direct or indirect subsidiaries, Employee's Agreement (Concerning Protected and Confidential Company Info1mation and Materials).

/s/ Tariq M. Shaukat            
Signature

Tariq M. Shaukat                
Printed Name

            Date: March 20, 2012EX-10.1

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 

This EMPLOYMENT AGREEMENT (“Agreement”), is dated as of October 20, 2014, between Marc Adelson
(“Executive”) and Medallion Financial Corporation, a Delaware corporation (“Company”). 
 WHEREAS, the
Company wishes to employ Executive, and Executive wishes to serve the Company, in the capacities and on the terms and conditions set forth in this Agreement. 

WHEREAS, if Executive does not sign and deliver a fully executed copy of this Agreement to the Company on or before October 20, 2014 at
2:00 p.m., all of terms of this Agreement shall be revoked and rendered unenforceable. 
 NOW, THEREFORE, it is hereby agreed as follows:

 1. Employment. 
 1.1 Agreement to
Employ. Upon the terms and subject to the conditions of this Agreement, the Company hereby agrees to employ Executive and Executive hereby agrees to his employment by the Company. 

1.2 Employment Period. Unless terminated pursuant to Section 4 hereof, the term of this Agreement shall commence on a date to be
determined by Executive on not less than five days’ notice to the Company, but in no event later than November 20, 2014 (“Commencement Date”) and shall continue until one year after the Commencement Date
(“Term”). Upon the conclusion of the Term, Executive shall remain employed by the Company as an at-will employee. As an at-will employee, both Executive and the Company have the right to terminate Executive’s employment at any
time, for any reason, with or without Cause or Good Reason (as those terms are defined below). 
 2. Position; Duties and Responsibilities. 

2.1 General. During the Term, Executive shall serve as the President of the Company’s asset-based lending division, Medallion
Business Credit. Notwithstanding the title listed above, Executive shall be the primary executive in charge of the Company’s asset-based lending division reporting to Andrew Murstein and Brian O’Leary (or their successors). Executive shall
have such duties and responsibilities as are consistent with and customarily assigned to his position with the Company. Executive shall also have such other reasonable duties and responsibilities as may from time to time be assigned to him by the
Chief Executive Officer, the President or the Board of Directors (“Board”), including, without limitation, active membership and participation on the credit committee of Medallion Business Credit. During Executive’s employment
with the Company, he shall devote his full attention and time to the business and affairs of the Company and shall carry out such duties and responsibilities faithfully and to the best of his ability. Executive may also be required to perform such
additional duties within his business expertise for the Company’s subsidiaries as may be reasonably requested from time to time by the Chief Executive Officer, the President or the Board. 

2.2 Exclusivity. During Executive’s employment with the Company and subject to the Company’s Code of Conduct, Executive shall
not engage in any other business activities that interfere in any material respect with the duties and responsibilities of Executive hereunder. 

  

					
					

 3. Compensation and Related Matters. 

3.1 Base Salary. During the Term, the Company shall pay to Executive an annual base salary (“Base Salary”) of
$312,500. The Base Salary shall be payable in accordance with the normal payroll procedures of the Company. The Base Salary shall be reviewed by the Board not less than once each fiscal year. 

3.2 Annual Bonus. During the Term, Executive shall be eligible to receive an annual bonus based upon Executive’s level of
performance and the overall success of the Company (“Annual Bonus”). The decision to provide any Annual Bonus and the amount and terms of any Annual Bonus shall be in the sole and absolute discretion of the Compensation Committee of
the Board; provided, however, for the fiscal year ending December 31, 2014, Executive shall be entitled to receive a bonus of $25,000 (“2014 Bonus”), so long as Executive remains employed with the Company through
December 31, 2014, payable to Executive on or before March 15, 2015 or such earlier date as bonuses are paid to similarly situated executives of the Company and is subject to applicable tax withholdings. 

3.3 Signing Bonus. The Company shall pay Executive a signing bonus in the amount of $25,000 (“Signing Bonus”). Such
amount shall be processed and paid to Executive with the first payroll after the Commencement Date and is subject to applicable tax withholdings. Executive shall repay the gross amount of the Signing Bonus if, during the Term, Executive terminates
his employment without Good Reason (as defined below) or is terminated by the Company for Cause (as defined below). 
 3.4 Other
Benefits. During the Term, subject to, and to the extent Executive is eligible under their respective terms, Executive shall be entitled to receive such benefits as are, or are from time to time hereafter, generally provided by the Company to
its employees (other than those provided under or pursuant to separately negotiated individual employment agreements or arrangements) under any retirement plan, group life insurance, medical and dental insurance, accidental death and dismemberment
insurance, short-term disability insurance, travel accident insurance or other similar plan or program of the Company. 
 3.5 Expense
Reimbursement. The Company shall reimburse Executive in accordance with its general reimbursement policies for all ordinary and necessary expenses incurred by Executive on behalf of the Company upon the presentation of appropriate supporting
documentation. The Company shall reimburse Executive in an amount up to $5,000 (“Fee Reimbursement Amount”) to pay for a portion of Executive’s legal fees and expenses in connection with this Agreement. Executive shall provide
the Company with evidence of the total amount of his legal fees and expenses within 14 days of the Commencement Date, and the Company shall pay a maximum of the Fee Reimbursement Amount to Executive within 14 days of receipt of such documentation.

 3.6 Vacations. Executive shall be entitled to three weeks paid vacation for each year during his employment with the Company,
which vacations shall be taken at such time or times as shall not unreasonably interfere with Executive’s performance of his duties under this Agreement. 

  

					
			2		

 3.7 Stock Options/Restricted Stock. 

(a) Executive shall be granted incentive stock options (as defined in Section 422 of the Internal Revenue Code)
(“Options”) to acquire 14,000 shares of common stock of the Company, at an exercise price per share equal to the closing price per share on the NASDAQ on the date of grant, which grant date shall be the later of receipt of approval
of the Compensation Committee of the Board (which shall meet on or before November 7, 2014) or the Commencement Date. The Options shall be issued pursuant to the Company’s 2006 Employee Stock Option Plan (“Plan”). The
Options shall be subject to vesting based solely upon the passage of time and Executive’s continued employment with the Company during the vesting period and shall vest one-third each year commencing on the first anniversary of the date of
grant, subject to accelerated vesting in accordance with Section 5.1. The Options shall be further governed by the terms of a stock option agreement entered into between Executive and the Company, in accordance with the Plan. 

(b) Executive shall be granted restricted stock equal to such number of shares of common stock of the Company as equals the quotient obtained
by dividing 100,000 by the closing stock price of shares of the Company’s common stock on the NASDAQ on the date of grant (“Restricted Stock”), which grant date shall be the later of receipt of approval of the Compensation
Committee of the Board (which shall meet on or before November 7, 2014) or the Commencement Date. The Restricted Stock shall be issued pursuant to the Company’s 2009 Employee Restricted Stock Plan (“Restricted Stock Plan”)
and shall be subject to vesting based solely upon the passage of time and Executive’s continued employment with the Company during the vesting period and shall fully vest one-third each year, commencing on the first anniversary of the date of
grant, subject to accelerated vesting in accordance with Section 5.1 herein. The Restricted Stock shall be further governed by the terms of a restricted stock agreement entered into between Executive and the Company in accordance with and
pursuant to the Restricted Stock Plan. 
 3.8 Clawbacks. Any amounts payable under this Agreement (whether in cash, Options or
Restricted Stock), to the extent earned based on financial performance of the Company, shall be subject to the Company’s ability to recoup or recover the cash, option or restricted stock award as required by applicable law or regulation,
including, without limitation, Section 304 of the Sarbanes-Oxley Act of 2002. 
 4. Termination of Executive’s Employment. 

4.1 Termination Without Cause. The Company may, with no less than 14 days’ prior written notice to Executive, at any time during
his employment with the Company terminate his employment without Cause (as defined below). 
 4.2 Termination With Cause. The Company
may, by written notice to Executive at any time during his employment with the Company, terminate his employment with Cause (as defined below). For purposes of this Agreement, “Cause” shall mean, as determined by the Board, acting
reasonably and in good faith: (i) willful acts of gross misconduct or gross negligence by Executive (x) in the performance of his duties hereunder or (y) in contravention of the Company’s Code of Ethical Conduct, Employee
Handbook or Rule 38a-l Compliance Manual, (ii) an intentional and material breach of this Agreement by Executive, other than due to disability or due to being directed by Andrew Murstein, Brian O’Leary, the Company’s CEO, President or
Board to commit any immoral, illegal or unethical act, (iii) substantial and continued failure by Executive to perform his duties hereunder other than due to disability or due to being directed by

  

					
			3		

 
Andrew Murstein, Brian O’Leary, the Company’s CEO, President or Board to commit any immoral, illegal or unethical act, which would be materially injurious to the Company; provided that
the Company’s economic performance or failure to meet any specific projection shall not, in and of itself, constitute “Cause”, (iv) Executive’s illegal use of drugs (including narcotics) which is, or could reasonably be
expected to become, materially injurious to the reputation or business of the Company or which materially impairs the performance of Executive’s duties hereunder, (v) Executive’s conviction by a court of competent jurisdiction of, or
pleading “guilty” or “no contest” to (x) felony fraud, embezzlement or a crime of a similar nature, or (y) a felony, or (vi) Executive’s violation of any of the provisions of Section 6, 7, or 8 herein.

 Any notice of termination for Cause given by the Company shall specify in writing in reasonable detail the nature of Executive’s
action or inaction that is the Cause for termination. Executive shall have 30 days to cure, to the reasonable satisfaction of the Board, any action or inaction charged by the Company for Cause under (i), (ii) or (iii) above. In the event
of a termination of Executive’s employment for Cause under (iv), (v) or (vi) above, the Executive’s employment shall terminate immediately upon notice by the Company of termination for Cause. 

4.3 Voluntary Termination by Executive with Good Reason. Executive may terminate his employment with the Company for Good Reason during
his employment with the Company upon 30 days’ written notice, which notice shall specifically set forth the nature of such Good Reason. The term “Good Reason” shall mean: (i) the substantial and material diminution in
Executive’s duties, responsibilities, reporting relationship or position, (ii) without Executive’s consent, the relocation of Executive’s principal office location more than 50 miles from its current location, or (iii) the
Company’s material breach of any provision of this Agreement; provided, however, that the term “Good Reason” shall not include a termination pursuant to Section 4.5 hereof. Notwithstanding the occurrence of any such event or
circumstance above, such occurrence shall not be deemed to constitute Good Reason hereunder if, within the 30-day notice period, the event or circumstance giving rise to Good Reason has been fully corrected by the Company. 

4.4 Voluntary Termination by Executive without Good Reason. Executive may, by written notice to the Company at any time during his
employment with the Company, voluntarily resign without Good Reason from employment with the Company. The effective date of such resignation shall be the date that is 30 days following the date Executive gives written notice. 

4.5 Disability. During the Term, if, as a result of physical or mental incapacity or infirmity, Executive shall be unable to perform
his duties under this Agreement for period of at least ninety (90) continuous days during any employment period of 12 consecutive months (each a “Disability Period”), the Company, by notice to Executive, shall have the right to
terminate Executive’s employment at, as of or after the end of the Disability Period, in accordance with applicable laws. 
 4.6
Death. Executive’s employment shall end on the date of Executive’s death. 
 5. Termination Compensation. 

5.1 Termination Without Cause by the Company, or by Executive with Good Reason. If Executive’s employment is terminated during the
Term under Sections 4.1 or 4.3, the Company shall pay to Executive in a lump sum Executive’s accrued but unpaid Base Salary, as in effect immediately prior to such termination, through the date of termination. In addition, upon execution of a
release of claims in favor of the Company, its affiliates and their respective 

  

					
			4		

 
officers and directors in a form provided by the Company (“Release”), the Company: (i) shall continue to pay Executive’s Base Salary until the expiration date of the
Term, (ii) shall continue health benefits payments for Executive (and his family, if applicable) until the expiration date of the Term, and (iii) shall pay to Executive a lump sum payment equivalent to two weeks’ salary for every year
Executive has been employed by the Company, not to exceed six months of his then-current Base Salary. A “Release” shall mean a release agreement substantially in the Company’s standard form as may be modified from time to time to
comply with federal, state and local laws, and the Company’s standard policies; provided that the terms of the Release shall be subject to good faith negotiation. The Release shall not relieve either party with respect to any rights or
obligations set forth in this Agreement which by its terms specifically survive termination. 
 If Executive’s employment is terminated
after the Term under Sections 4.1 or 4.3, in accordance with the terms of the Release, he shall only be eligible for the severance benefits described in Section 5.1(iii). 

If Executive’s employment is terminated during the Term or after the Term under Sections 4.1 or 4.3, in accordance with the terms of the
Release, all Options and Restricted Stock previously granted to Executive (including at commencement of employment and thereafter) shall become immediately vested and exercisable. The payments set forth in Sections 5.1 (i) and 5.1(ii) shall be
payable in accordance with the normal payroll procedures of the Company. The Company shall have no obligation to continue any other benefits provided for hereunder past the date of termination, except as provided by the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”) or similar state insurance laws. 
 5.2 Termination on Account of Death. If
Executive’s employment is terminated under Section 4.6, the Company shall pay to Executive (or his estate) in a lump sum Executive’s Base Salary through the date of termination. The Company shall have no obligation to continue any
other benefits provided for hereunder past the date of termination, except as provided by COBRA or similar state insurance laws. 
 5.3
Termination on Account of Disability. If Executive’s employment is terminated during the Term under Section 4.5, the Company shall pay to Executive in a lump sum Executive’s accrued but unpaid Base Salary as in effect
immediately prior to such termination through the date of termination. In addition, in accordance with the terms of the Release, the Company: (i) shall continue to pay Executive’s Base Salary for six months following the termination, and
(ii) shall continue health benefits payments for Executive (and his family, if applicable) for six months following the termination. The Company shall have no obligation to continue any other benefits provided for hereunder past the date of
termination, except as provided by COBRA or similar state insurance laws. 
 If Executive’s employment is terminated after the Term
under Section 4.5, in accordance with the terms of the Release, the Company: (i) shall continue to pay Executive’s Base Salary for three months following the termination, and (ii) shall continue health benefits payments for
Executive (and his family, if applicable) for three months following the termination. The Company shall have no obligation to continue any other benefits provided for hereunder past the date of termination, except as provided by COBRA or similar
state insurance laws. 

  

					
			5		

 5.4 Certain Other Terminations. If Executive’s employment is terminated during the
Term or after the Term under Sections 4.2 or 4.4, the Company shall pay to Executive in a lump sum Executive’s Base Salary through the dale of termination. The Company shall have no obligation to continue any other benefits provided for
hereunder past the date of termination, except as provided by COBRA or similar state insurance laws. If Executive’s employment is terminated during the Term or after the Term under Sections 4.2 or 4.4, all unvested Options shall be forfeited.

 5.5 Indemnification. During the term of Executive’s employment with the Company and thereafter, he shall be included under
any D&O liability insurance coverage made available and provided for the benefit of officers and directors of the Company, as well as any indemnification, defense and reimbursement provisions contained in the Company’s bylaws or other
policies applicable to executive employees. Rights and benefits under the foregoing shall survive Executive’s termination of employment for all acts or omissions occurring during Executive’s employment with the Company. 

6. Confidentiality. Executive shall contemporaneously execute and deliver to the Company a Proprietary Information and Inventions Agreement
(“PIIA”); provided, however, that notwithstanding anything contained in the PIIA to the contrary, in the event of any inconsistency between the provisions of this Agreement and the PIIA, the provisions of this Agreement shall control.
Further, for purposes of clarity, Sections VI and VII of the PIIA are expressly superseded by Sections 7 and 8 of this Agreement. 
 7.
Noncompetition. 
 7.1 Because of the Company’s legitimate business interest as described herein and the good and valuable
consideration offered to Executive, for the period commencing on the Commencement Date and (i) ending three months after the termination of Executive’s employment if Executive’s employment is terminated under Sections 4.1 or 4.3 or
(ii) ending six months after the termination of Executive’s employment if Executive’s employment is terminated under Sections 4.2, 4.4 or 4.5, Executive shall not, directly or indirectly, individually or jointly, own any interest in,
operate, join, control or participate as a partner, director, principal, officer, or agent of, enter into the employment of, act as a consultant to, or perform any services for any entity that competes with or is planning or has undertaken any
preparation to compete with the Company’s asset-based lending division, or any other business of the Company or its affiliates in which Executive performs services. 

7.2 Because of the Company’s legitimate business interest as described herein and the good and valuable consideration offered to
Executive, for the period commencing on the Commencement Date and ending 12 months after the termination of Executive’s employment for any reason, Executive shall not, directly or indirectly, individually or jointly, own any interest in,
operate, join, control or participate as a partner, director, principal, officer, or agent of, enter into the employment of, act as a consultant to, or perform any services for any entity that borrowed assets or capital from the Company during
Executive’s employment with the Company. 
 7.3 Notwithstanding the generality of the foregoing, nothing in Section 7 shall
prohibit Executive from acquiring or holding any issue of stock or securities of any competitive business, individual, partnership, firm, or corporation (collectively “Entity”) that has any securities listed on a national securities
exchange or quoted in the daily listing of over-the-counter market securities, provided that at any one time he does not own more than two percent (2%) of the voting securities of any such Entity. The obligations of Executive pursuant to this
Section 7 shall 

  

					
			6		

 
survive the expiration or termination of this Agreement. Executive acknowledges and agrees that the restrictions, limitations and covenants in this paragraph apply to any geographic area within
the United States, and that the Company has a legitimate business interest and right in prohibiting Executive from competing with the Company. Executive also acknowledges and agrees that the Company’s business is not limited by geographic
boundaries and that the covenants herein are reasonable in geographic scope. 
 8. Nonsolicitation; non-disparagement. Because of the Company’s
legitimate business interest as described herein and the good and valuable consideration offered to Executive, for the period commencing on the Commencement Date and ending 12 months after the termination of Executive’s employment for any
reason, 
 (a) Executive shall not (i) hire (directly or indirectly), solicit (other than by newspaper or other media general
solicitation), take away, or otherwise interfere with the relationship of the Company or its subsidiaries with any person who is, or within the most recent twelve-month period was, employed by the Company or otherwise engaged pursuant to a
consulting agreement or independent contractor agreement to perform services for the Company or its subsidiaries (provided, however, that it is not intended that the limitations set forth in this Section 8(a)(i) would apply to any third
party/non-employee of the Company that generally provides accounting, legal, valuation, appraisal, turnaround, financial consulting, quality of earnings evaluations, field examination and similar services to lenders and/or their borrowers); or (ii)
take away, or otherwise interfere with the relationship of the Company or its subsidiaries with any person or entity who is, or within the then most recent 12-month period was, a customer, client, prospective customer or prospective client
(prospective customer or prospective client meaning a person or entity that has been actively pursued by the Company for business purposes) of the Company’s asset-based lending division, or any other business of the Company or its affiliates in
which Executive performs services. The obligations of Executive pursuant to this Section 8 shall survive the expiration or termination of this Agreement. Executive acknowledges and agrees that the restrictions, limitations and covenants in this
paragraph apply to any geographic area within the United States, and that the Company has a legitimate business interest and right in prohibiting Executive from soliciting, enticing, inducing or encouraging employees, former employees, clients and
prospective clients of the Company. Executive also acknowledges and agrees that the Company’s business is not limited by geographic boundaries and that the covenants herein are reasonable in geographic scope. 

(b) Executive shall not at any time make, publish or communicate to any person or entity or in any public forum any defamatory or disparaging
remarks, comments or statements concerning the Company or its businesses, or any of its employees, officers, and existing and prospective customers, suppliers, investors and other associated third parties. This Section 8(b) does not, in any
way, restrict or impede Executive from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an
authorized government agency, provided that such compliance does not exceed that required by the law, regulation or order. Executive shall promptly provide written notice of any such order to the Company’s General Counsel. 

9. Successors; Binding Agreement. This Agreement and all rights of Executive hereunder shall inure to the benefit of and be enforceable by Executive
and Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If Executive should die while any amounts would still be payable to him hereunder if he had continued to live,
all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to Executive’s devisee, legatee, or other beneficiary or, if there be no such beneficiary, to Executive’s estate. 

  

					
			7		

 10. Survivorship. The respective rights and obligations of the parties hereunder shall survive any
termination of this Agreement to the extent necessary to the intended preservation of such rights and obligations. 
 11. Representations of
Executive. Executive represents and warrants to the Company that (a) Executive’s acceptance of employment with the Company and the performance of his duties hereunder does not (and will not) conflict with or result in a violation of a
breach of, or a default under any contract, agreement or understanding to which he is a party or is otherwise bound and (b) Executive’s acceptance of employment with the Company and the performance of his duties hereunder does not (and will
not) violate any non-solicitation, non-competition or other similar covenant or agreement of a prior employer. 
 12. Miscellaneous. 

12.1 Notices. Any notice, consent or authorization required or permitted to be given pursuant to this Agreement shall be in writing and
received by the party for or to whom intended, at the address of such party set forth below, by registered or certified mail, postage paid or personally delivered or sent by facsimile transmission (deemed given upon receipt), or at such other
address as either party shall designate by notice given to the other in the manner provided herein. 
  If to the Company: 

 Medallion Financial Corporation 
  437 Madison Avenue

  New York, NY 10022 
  Attn: President 

 Facsimile: 212-328-2121 
  If to Executive: 

 To his most recent address on file with the Company. 

12.2 Taxes. The Company is authorized to withhold (from any compensation or benefits payable hereunder to Executive) such amounts for
income tax, social security, unemployment compensation and other taxes as shall be necessary or appropriate in the reasonable judgment of the Company to comply with applicable laws and regulations. 

12.3 Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New
York, without reference to the principles of conflicts of laws therein. 
 12.4 Headings. All descriptive headings in this Agreement
are inserted for convenience only and shall be disregarded in construing or applying any provision of this Agreement. 
 12.5
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. 

  

					
			8		

 12.6 Severability. If any provision of this Agreement, or any part thereof, is held to be
unenforceable, the remainder of such provision and this Agreement, as the case may be, shall nevertheless remain in full force and effect. 

12.7 Entire Agreement. This Agreement and the PIIA contain the entire agreement and understanding between the Company and Executive
with respect to the subject matter hereof. This Agreement supersedes any prior agreement between the parties relating to the subject matter hereof. The terms of this Agreement may not be modified except by a writing duly executed by Executive and
the Company. This Agreement may not be modified by e-mail. 
 12.8 Validity. If any covenants or such other provisions of this
Agreement are found to be invalid or unenforceable by a final determination of a court of competent jurisdiction or an arbitrator, the remaining terms and provisions hereof shall be unimpaired and enforceable without regard to the invalid or
unenforceable term or provision. 
 12.9 Construction. The parties have cooperated in the drafting and preparation of this Agreement.
In any construction to be made of this Agreement, it shall not be construed against either party. 
 12.10 Remedies. 

(a) Executive acknowledges that the Company’s remedy at law for a breach by Executive of the provisions of Sections 6, 7 or 8 will be
inadequate. Executive further acknowledges that Executive’s agreement to abide by the provisions of Sections 6, 7 and 8 is a material condition precedent to the Company’s willingness to employ Executive and enter into this Agreement.
Accordingly, in the event of a breach or threatened breach by Executive of any provision of Sections 6, 7 or 8, the Company shall be entitled to injunctive relief in addition to any other remedy it may have. 

(b) The parties agree that the restrictions contained in Sections 6, 7 and 8 are reasonable and that it is Executive’s intention and the
intention of the Company that such restrictions shall be enforceable to the fullest extent permissible by law. If a court of competent jurisdiction or an arbitrator shall find that any such restriction is unenforceable, but would be enforceable if
some part were deleted or modified, then such restriction or remedy shall apply with the deletion or modification necessary to make it enforceable and shall in no way affect any other provision of this Agreement or the validity or enforceability of
this Agreement. 
 12.11 Pre-Arbitration Attempts at Dispute Resolution. In the event that any party believes that another party to
this Agreement has breached any of the provisions of this Agreement (except for circumstances in which the Company is seeking injunctive relief with respect to Sections 6, 7 or 8 of this Agreement), the parties shall attempt to resolve the matter
informally, by agreement, through their attorneys. If the matter is not resolved by agreement, any party to this Agreement may refer it for confidential and binding arbitration under Section 12.12. 

12.12 Arbitration. 
 (a)
In consideration of the Company employing Executive or continuing to employ Executive and the mutual promises set forth herein, Executive and the Company agree, for themselves and for their representatives, successors, and assigns, that, subject to
the proviso below, any controversy or claim arising out of or relating to this Agreement, its enforcement or interpretation, or because of an alleged breach, default, or misrepresentation in connection with

  

					
			9		

 
any of its provisions, or arising out of or relating in any way to Executive’s employment with the Company or termination thereof, shall be settled by final and binding arbitration in New
York County, New York (or such other place as may be agreed to by the parties) before a single arbitrator, selected in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association
(“AAA”), in accordance with the procedures required under New York law; provided, however, that in the event of a claimed violation of this Agreement, the Company may seek injunctive relief in a court of competent
jurisdiction in order to prevent irreparable harm or preserve the status quo. Executive and the Company further agree that claims by Executive or by the Company may only be brought in the party’s individual capacity, and not as a plaintiff or
class member in any purported class or representative proceeding. In that regard, Executive specifically agrees not to file, initiate directly or indirectly, join, or participate in any class or collective action. If a class or collective action is
filed purporting to include Executive, then Executive shall take all steps necessary to refrain from opting in or to opt-out or otherwise exclude Executive from the action, as appropriate. 

(b) To the extent not inconsistent with law, the following shall govern any arbitration hereunder (which shall take precedence over any
contrary rule of the AAA): 
 (i) The arbitrator may award any form of remedy or relief (including injunctive relief) that would otherwise
be available in court, consistent with applicable laws. Any award pursuant to said arbitration shall be accompanied by a written opinion of the arbitrator setting forth the reason for the award, including findings of fact and conclusions of law. The
award rendered by the arbitrator shall be conclusive and binding upon the parties hereto, and judgment upon the award may be entered, and enforcement may be sought in, any court of competent jurisdiction or application may be made to such court for
a judicial acceptance of the award and an order of enforcement. 
 (ii) Except as provided in this Agreement or as required by law, each
party shall pay its own expenses incurred in connection with arbitration (including, without limitation, filing fees, administrative costs and attorneys’ fees). If Executive seeks to arbitrate a claim against the Company, then Executive shall
pay the applicable filing fee, up to the amount Executive would be required to pay to file the same claims(s) in a New York state or federal court. The expenses of the arbitrator (including compensation of the arbitrator) shall be borne equally by
the parties. Notwithstanding the foregoing, if any matter of dispute raised by a party or any defense or objection thereto was unreasonable or made in bad faith, the arbitrator may assess, as part of the arbitration award, all or any part of the
arbitration expenses of the other party, and the arbitration fees against the party raising such unreasonable matter of dispute or defense or objection thereto. 

(iii) This predispute resolution agreement covers all matters directly or indirectly related to Executive’s recruitment, employment, or
termination of employment by the Company, including, but not limited to, alleged violations of Title VII of the Civil Rights Act of 1964, sections 1981 through 1988 of Title 42 of the United States Code and all amendments thereto, Employee
Retirement Income Security Act of 1974 (“ERISA”), the Americans with Disabilities Act of 1990 (“ADA”), the Age Discrimination in Employment Act of 1967 (“ADEA”), the Older Workers Benefits Protection Act of 1990
(“OWBPA”), the Fair Labor Standards Act (“FLSA”), the Occupational Safety and Health Act (“OSHA”), the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), and any and all claims under federal,
state, and local laws against discrimination, but excluding Worker’s Compensation Claims. 

  

					
			10		

 (iv) In the event that either party files, and is allowed by the courts to prosecute, a court
action against the other, the plaintiff in such action agrees not to request, and hereby waives such party’s right to a trial by jury. 

(v) If for any reason the arbitration provisions herein are found to be unenforceable, any action with respect to or arising out of this
Agreement shall be brought and maintained in a state or federal court of competent jurisdiction located in New York County, and the parties irrevocably consent to the personal jurisdiction of and venue in such court. 

(vi) In construing this Agreement and disputes arising hereunder, the Arbitrator shall apply the law of the State of New York, without regard
to its conflict of laws principles. 
 (vii) There shall be a stenographic transcription of the arbitration proceedings, the costs thereof
to be shared equally by the parties. 
 (viii) Upon an application to a court of competent jurisdiction with respect to an award rendered
by the arbitrator, any court having jurisdiction may enter judgment upon any award either by confirming the award, or by vacating, modifying or correcting the award in accordance with applicable New York law. 

(ix) This arbitration clause, and its enforcement, shall be governed by the laws of the State of New York. 

(x) EXECUTIVE AND THE COMPANY UNDERSTAND THAT, ABSENT THIS AGREEMENT, THEY WOULD HAVE THE RIGHT TO SUE EACH OTHER IN COURT, AND THE RIGHT TO
A JURY TRIAL, BUT, BY THIS AGREEMENT, GIVE UP THAT RIGHT AND AGREE TO RESOLVE ANY AND ALL GRIEVANCES BY ARBITRATION. 
 12.13
Acknowledgement of Full Understanding. EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO THIS AGREEMENT. EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND
CONSULT WITH AN ATTORNEY OF HIS CHOICE BEFORE SIGNING THIS AGREEMENT. 
 13. Deadline for Executive’s Signature. Executive understands and
agrees that if he does not sign and deliver a fully executed copy of this Agreement on or before October 20, 2014 at 2:00 p.m., the Company shall have no obligation to enter into this Agreement, Executive shall not be entitled to receive any of
the consideration provided in this Agreement, and all of the promises and undertakings in this Agreement shall be null and void. 

  

					
			11		

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written. 
  

									
	MEDALLION FINANCIAL CORP.
					
	By:		

				Date:		10/20/14
		 	  
	 		 		 	  

	Name:		Andrew Murstein						
	Title:		President						
				
	MARC ADELSON						
				
	

				Date:		10/20/14
	  
	 		 		 	  

  
 12

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