Document:

Exhibit 10.4

 

May 3, 2011

 

Via Hand Delivery

Donna Lehmann

c/o Herbst Gaming, LLC

3440 West Russell Road

Las Vegas, NV 89118

 

Dear Donna:

 

This letter, when effective as set forth below, shall serve as the amendment (the “Amendment”) to the Letter Agreement dated January 11, 2011 (the “Letter Agreement”) by and between you and Herbst Gaming, LLC (the “Company”) governing the terms and conditions of your employment with the Company.   All capitalized terms set forth in this Amendment, unless otherwise hereinafter defined, shall have the same meaning as in the Letter Agreement.

 

1.             Paragraph 1(a) of the Letter Agreement is amended to provide that, effective this date, you will be employed by the Company in the position of Senior Vice President, Finance.

 

2.             Paragraph 1(d) of the Letter Agreement is amended to provide that, effective this date, you will report to the directly to the Company’s Chief Financial Officer, but this reporting relationship may change in accordance with the business needs of the Company.

 

3.             With respect to paragraph 3(c) of  the Letter Agreement, your 2011 option grant under the Herbst Gaming, LLC 2011 Long Term Incentive Plan shall be made at a projected value of $75,000, and otherwise shall be in accordance with the terms of the Plan and an agreement entered into in connection therewith.

 

4.             Except as specifically set forth in paragraphs 1 through 3 of this Amendment, all other terms and conditions of the Letter Agreement, as well as each of the Executive Severance Agreement and the Duty of Loyalty Agreement dated January 11, 2011 and between you and the Company (together, the “Ancillary Agreements”), shall remain unchanged.

 

5.             In consideration of your continuing employment with the Company under the terms and conditions of the Letter Agreement as amended by this Amendment, you voluntarily and knowingly release and forever discharge the Company, its

 

 

subsidiaries, affiliates, related entities, and employee benefit plans, and its and their shareholders, members, directors, managers, officers, employees, trustees, administrators and fiduciaries, and its and their successors and assigns, from any and all claims, demands, causes of action, obligations, damages and liabilities of whatever kind, in law or equity, by statute or otherwise, including without limitation all attorney’s fees, costs, disbursements and the like (all collectively referred to as “Claims”), whether known or unknown, arising out of or relating directly or indirectly in any way to your employment and the terms and conditions of your employment up to and including the end of the revocation period described in paragraph 10 below, including but not limited to:

 

·      Claims of discrimination, harassment and retaliation in employment under, without limitation:

·      the Age Discrimination in Employment Act, as amended;

·      Title VII of the Civil Rights Act of 1964, as amended;

·      the Americans with Disabilities Act, as amended;

·      Sections 1981 through 1988 of Title 42 of the United States Code;

·      the Employment Retirement Income Security Act of 1974, as amended; and

·      the Family Medical Leave Act, as amended;

·      Claims under Nevada laws on compensation, wages and hours and employment practices, and similar state and local laws; and

·      Claims for breach of contract (express or implied), retaliation, wrongful discharge, detrimental reliance, defamation, emotional distress, and compensatory and punitive damages.

 

6.             By signing below, you acknowledge and agree that you will not be able to benefit monetarily from any of the Claims released in paragraph 5 of this Amendment and that you have waived any right to equitable relief that may have been available to you with respect to any Claim released.  Your signature below further acknowledges the fact that you are receiving sufficient consideration for this release of Claims, and that you will not be entitled to receive any other payments or benefits from the Company apart from the payments and benefits described in the Letter Agreement, as amended, and the Ancillary Agreements.

 

7.             By signing below, you are not releasing claims that arise after this Amendment becomes effective, claims to enforce this Amendment, claims or rights you may have to workers’ compensation or unemployment benefits, claims for accrued, vested benefits under any employee benefit plan of the Company in accordance with the terms of such plans and applicable law, or claims or rights which cannot be waived by law.  Additionally, by signing below, you are not waiving your right to file a charge with, or participate in an investigation conducted by, any governmental agency, including, without limitation, the United States Equal Employment Opportunity Commission (“EEOC”).  Nevertheless, as set forth above, you acknowledge that you cannot benefit monetarily or obtain damages or equitable relief of any kind from or through any charge pursued or any action

 

2

 

commenced by a government agency or third party with respect to claims waived in paragraph 5 of this Amendment.

 

8.             As amended by this Amendment, the Letter Agreement, together with the Ancillary Agreements, contain the entire agreement and understanding between you and the Company, and supersede any and all prior agreements and understandings, whether written or oral, between or among you, the Company or any of its affiliates and related entities, with respect to the terms and conditions of your employment with the Company.

 

9.             This Amendment (a) is governed by the laws of the State of Nevada applicable to agreements made and to be performed wholly within the state, and as such will be construed under and in accordance with the laws of the State of Nevada without regard to conflicts of law principles, and (b) may not be modified unless evidenced by a writing signed by you and an authorized representative of the Company.

 

10.           You have 21 days from your receipt of this Amendment to consider and accept its terms, but may sign it at any time within the 21-day period up to and including the 21st day after you receive it.  If you decide to sign this Amendment, you will have seven (7) days thereafter in which to revoke your decision by sending written notice of revocation to the Company.  Provided you do not revoke your decision, this Amendment will become effective on the eighth (8th) day after you sign it.  We encourage you to speak with an attorney before signing this Amendment.

 

11.           By signing this Amendment, you agree that you are signing it voluntarily of your own free will, that you were given 21 days within which to consider its terms and to consult with an attorney, and that you understand and agree to its terms.

 

 

	
Sincerely,
    	
 
    
	
 
    	
 
    
	
/s/   David   D. Ross
    	
 
    
	
David   D. Ross
    	
 
    
	
Chief   Executive Officer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
ACCEPTED   and AGREED TO
    	
 
    
	
this 6th day of May, 2011:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Donna   Lehmann
    	
 
    
	
Donna   Lehmann
    	
 
    

 

3exhibit10-1.htm

Exhibit 10.1

 

 

 

  

Exhibit 10.1 - Page - 1

  

 

 

 

 

 

  

Exhibit 10.1 - Page - 2

  

 

 

 

 

 

  

Exhibit 10.1 - Page - 3

  

 

 

 

 

 

  

Exhibit 10.1 - Page - 4

  

 

 

 

 

 

  

Exhibit 10.1 - Page - 5ex10_03.htm

Exhibit 10.03

2011 Quarterly Bonus Plan

 

Shutterfly’s Quarterly Bonus Plan is designed to support our high performance culture

 

Key Plan Components

 

	
  

	
·

	
Performance objectives will be set, measured, and rewarded in 90 day increments.  These measurement periods allow all participants to focus on and execute on key imperatives.

 

	
  

	
·

	
Each quarter will be measured independently.  Quarters 1-3 will each provide 20% of the annual opportunity.  Q4 will provide 40% to align rewards with cash-flow, revenue, profit, and to encourage participants to focus on full-year objectives and to remain active employees with the Company.

 

	
  

	
·

	
Objectives will be set for both Company financial targets and individual performance objectives.  Specific financial targets are not communicated to participants during the quarter.

 

	
  

	
·

	
The Company must achieve its minimum financial objectives in order for any bonuses to be paid.

 

	
  

	
·

	
Individual objectives will measure both what was achieved, and how it was achieved.

 

	
  

	
·

	
Initial bonus guidelines are based upon the table below, subject to further modification determined at the discretion of management.

 

 

Here is a bonus calculation example

	 	
Determine the quarterly bonus target opportunity

	 	 
	 	
Annual Base Pay

	
x  Bonus Target

	
= Annual Bonus Target

	
x  Quarterly Weight

	
= Quarterly Target

	 	
$60,000

	
x  5%

	
= $3,000

	
x  20%*

	
= $600

	 	  	  	  	  	  
	 	
If Company performance is at Target and you Meet Expectations...

	 	 
	 	
Quarterly Target

	
x  Matrix Payout %

	
= Guideline Bonus

	  	  
	 	
$600

	
x  75% - 95%

	
= $450 - $570

	  	  
	 	  	  	  	  	  
	 	
Or if Company performance is at Maximum and you Exceed Expectations...

	 	 
	 	
Quarterly Target

	
x  Matrix Payout %

	
= Guideline Bonus

	  	  
	 	
$600

	
x  140% - 175%

	
= $840 - $1,050

	  	  

 

*This example uses a 20% quarterly weight.  The plan uses 20% for Q1-Q3 and 40% in Q4.

 

  

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2011 Quarterly Bonus Plan 

  

Plan Details

 

Participation:  Eligible positions are identified each year and eligibility one year does not guarantee eligibility in future years.  Employees may contact Human Resources to determine whether or not they are eligible.  Employees hired or promoted into eligible positions before the start of a quarter are eligible to earn a bonus for the next quarter if performance criteria are met.  Employees hired after the start of a quarter are not eligible to participate for that current quarter.  Employees who participate in another bonus plan are not eligible.  This Plan replaces any prior quarterly bonus program.

 

Bonus Target:  Participants are assigned an incentive bonus target based on their position.  This target is identified as a percentage of the ending quarterly base salary.

 

Performance Plan:  Participants meet with their managers at the start of a quarter to establish a performance plan, identifying specific objectives and expected achievements.  At the end of a quarter, managers assign a performance rating to each participant based upon performance.

 

Company Performance:  Each quarter, Company financial objectives will be established, including a minimum EBITDA margin and a minimum revenue amount.  In order for any bonuses to be earned, the Company must meet or surpass both measures.  The better the Company performs – the more bonus dollars available.

 

Individual Performance:  Individual Performance ratings are calculated each quarter based upon performance and achievement of objectives and competencies.  The better an individual does - the larger the bonus available to them.

 

Payments:  Plan awards are determined based on both Company performance and individual performance, and are subject to additional modifications, including possible reductions, based on management discretion.  If the Company fails to achieve the minimum financial objectives, or the participant fails to meet the necessary individual performance conditions, no bonus will be earned for that measurement period.

 

Payment Eligibility Conditions:  In addition to meeting at least the minimum thresholds for Company performance and individual performance, participants are also subject to the following conditions:

 

	
  

	
·

	
A participant on an approved leave of absence during any portion of the performance period shall be eligible for a pro-rated bonus.

 

	
  

	
·

	
A participant whose employment ends before the payment date will not be eligible to earn a bonus. Payment Date:  Bonuses are not earned until paid.  Plan awards will generally be paid on the next regular payday following the public announcement of quarterly financial performance and after the bonus is reasonably calculable.  Plan awards are subject to all applicable taxes and withholdings.

 

Plans Changes:  To the extent permitted by law, the Company reserves complete discretion and rights to amend, modify, or terminate this program at any time without notice.

 

 

The Company will not be bound by or liable to any employee for any representation, promise or inducement made by any person that is not embodied in this program or in any authorized written modification or amendment to this plan.  Nothing here alters the “at will” employment relationship with the Company, as described in the employee handbook.  Neither the program nor the transactions authorized under the program constitute an express or implied promise of continued employment for any period.  Nothing in the program shall interfere with or limit in any way the right of the employee or the Company to terminate employment at any time, with or without cause or notice.

 

 

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