Document:

EXHIBIT
10.25

EXECUTIVE EMPLOYMENT AGREEMENT

(“Agreement”)

EXECUTIVE
EMPLOYMENT AGREEMENT, effective August 1, 2006 (“Effective Date”), by and
between Jacobs Entertainment, Inc., a Colorado corporation (the “Company”) and
Ian M. Stewart (the “Executive”).

WHEREAS,
the Company desires to employ the Executive on a full-time basis, and the
Executive desires to be so employed by the Company, from and after the date of
this Agreement.

NOW,
THEREFORE, in consideration of the mutual covenants contained herein, the
parties agree as follows:

ARTICLE I

EMPLOYMENT
DUTIES AND BENEFITS

Section 1.1                                   Employment.  The Company hereby employs the Executive as
President of Pari-mutuel Wagering Operations of the Company.  The Executive accepts such employment and
agrees to perform the duties and responsibilities assigned to him under this
Agreement.

Section 1.2                                   Duties
and Responsibilities.  During the
period of employment, Executive agrees to serve as the President of Pari-mutuel
Wagering Operations of the Company and in such other offices and directorships
of the Company and of its subsidiaries and related companies (collectively, “affiliates”)
to which he may be elected or appointed, and to perform the duties commensurate
with such positions and such other reasonable and appropriate duties as may be
requested of him by the Chief Executive Officer and/or President of the
Company, in accordance with this Agreement and in compliance with all
applicable laws and regulations. 
Excluding periods of vacation and sick leave to which Executive is
entitled, Executive shall devote such time, energy, and skill to the business
and affairs of the Company and its affiliates and to the promotion of their
interests as is necessary to perform the duties required of him by this
Agreement.

Section 1.3                                   Working
Facilities; Location.  The
Executive shall be furnished with facilities and services suitable to his
position and adequate for the performance of his duties under this
Agreement.  The principal place of
performance by Executive of his duties hereunder shall be at the offices of the
Company in New Kent, Virginia or at such other location as may reasonably be
required to travel outside that area in the performance of Executive’s
responsibilities.

Section 1.4                                   Vacations.  The Executive shall be entitled each year
during the Term, as defined below, to a vacation with full salary and benefits,
for the number of weeks set forth in the Company’s Employee Handbook.

Section 1.5                                   Vehicle
Allowance.  The Executive shall
be paid a vehicle allowance of approximately $600 per month, or at his
election, the Company shall lease a vehicle for not more than $600 per month.

Section 1.6                                   Expenses.  The Executive is authorized to incur
reasonable expenses for promoting the business of the Company in all respects,
including expenses for entertainment, travel and 

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similar
items.  The Company will promptly
reimburse the Executive for all such expenses upon the presentation by the
Executive, from time-to-time, of an itemized account of such expenditures.

Section 1.7                                   Benefit
Plans.  From the effective date
of this Agreement, the Executive shall be entitled to participate in benefit
plans provided to employees of the Company. 
Such participation shall be based upon the policies established in the
Company’s Employee Handbook as applicable to the Executive.

ARTICLE II

COMPENSATION

Section 2.1                                   Base
Salary.  The Company shall pay to
the Executive a Base Salary of $275,000 in the first year of this Agreement,
$287,500 in the second year of this Agreement, and $300,000 in the final year
of this Agreement payable in accordance with the Company’s payroll and
withholding policies.

Section 2.2                                   Bonus
and Bonus Plan Participation. 
The Executive is entitled to participate in a bonus plan or incentive
plan as formulated by the Company’s Board of Directors, Compensation Committee
or Chief Executive Officer and/or President. 
Within 60 days after the date of this Agreement, and at the beginning of
each calendar year thereafter during the Term hereof, the Chief Executive
Officer and/or President of the Company shall establish written goals and
performance criteria for the Executive. 
If such goals and performance criteria for the Executive are met for a
particular year, the Executive shall be entitled to a bonus of up to 33% of his
Base Salary.  Subject to Sections 3.3 and
3.4, the bonus shall be payable only if the Executive is employed by the
Company at December 31 of each year for which the bonus is determined.

ARTICLE III

TERM OF
EMPLOYMENT AND TERMINATION

Section 3.1                                   Term.
 This Agreement shall be for a period
of three years commencing on August 1, 2006 and ending three years thereafter,
subject, however, to earlier termination during such period as provided in this
Article (the “Term”).

Section 3.2                                   Termination
by the Company With Cause.  The
Company may terminate the Executive’s employment, at any time, for cause upon
ten days’ written notice and opportunity for the Executive to remedy any
non-compliance with the terms of this Agreement (if such non-compliance can be
remedied).  Grounds for termination “for
cause” shall be one or more of the following: 
(i) intentional and material breach of his duty of loyalty or care to
the Company, (ii) gross negligence or willful misconduct in performance of his
duties during the course of his employment, (iii) failure to abide by the
corporate policies and procedures set forth in the Company’s Employee Handbook;
(iv) failure to execute the reasonable and lawful instructions of the Company’s
Chief Executive Officer and/or President relating to the operation of the
Company’s business; (v) conviction of any felony crime or loss or material
impairment of his gaming license in Colorado, Nevada, or any jurisdiction in
which the Company conducts its business; and (vi) Executive’s inability to
perform his duties hereunder for a period of more than 30 days because of a
restraining order, injunction or other legal prohibition.  Upon the date of termination of the Executive’s
employment pursuant to this Section 3.2, the Company’s obligation to pay any
compensation including bonuses shall terminate, at which time the Company shall
be responsible for compensating the Executive for any unpaid salary, vacation
time not taken and unreimbursed expenses. 
Subject to this exception and the obligation of the Company to
compensate the

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Executive through
the notice period, no other compensation shall be payable to the Executive
should this Agreement be terminated pursuant to this Section 3.2.  The one-year noncompetition covenant in
Section 4.1(c) below shall begin to run on the date of termination under this
Section 3.2.

Section
3.3                                  Termination
by the Company Without Cause.  If
the Executive’s employment is terminated by the Company, without cause, all
compensation shall cease, but the Company shall be obligated to compensate the
Executive with a lump sum severance payment equal to a total of six months of
salary compensation (i.e. one-half of the Base Salary then being paid to the
Executive).  In the event the Executive’s
employment is terminated pursuant to this Section 3.3, the Executive shall be
entitled to participate in the bonus payable pursuant to Section 2.2, with
respect to the year in which his employment is terminated, prorated for the
year based on the number of full months employed during such year compared to
12.  In addition, the non-competition
covenants in Sections 4.1 (a) and (c) below shall be automatically terminated
on the effective date of any termination of Executive’s employment by the
Company without cause.

Section 3.4                                  Termination
upon Death of the Executive.  In
addition to any other provision relating to termination, this Agreement shall
terminate upon the Executive’s death.  In
such event, all unpaid compensation, compensation for vacation time not taken
by the Executive and all expense reimbursements due to the Executive shall be
paid to the Executive’s estate.  In the
event Executive’s employment is terminated pursuant to this Section 3.4, the
Executive’s estate shall be entitled to a death benefit equal to six months of
salary compensation (i.e. one-half of the Base Salary then being paid to the
Executive), and to participate in the bonus pursuant to Section 2.2 with
respect to the year in which his employment is terminated pro rated for the
year based on the number of full months worked during such year compared to 12.

Section 3.5                                  Termination
by the Executive.  This Agreement
may be terminated by the Executive upon 60 days prior written notice, in which
event the Executive shall be entitled to salary compensation only during the
notice period (i.e. two months from the date of notice at the Base Salary rate
then in effect) and no pro rated bonus shall be paid or payable.  In the event the Executive’s employment is
terminated pursuant to this Section 3.5 the one-year noncompetition covenants
in Sections 4.1 (a) and (c) below shall begin to run 60 days after such notice
of termination.

Section 3.6                                   Termination
upon Change of Control.  (a) If
during the Term there is a Change of Control of the Company and the Executive
is not offered, by the acquiring company or person, an employment position, or
not offered an employment position satisfactory to him , he shall be deemed
Terminated Without Cause and shall be entitled to a severance payment in an
amount equal to one year’s Base Salary, which shall be in addition to amounts
payable to the Executive under Section 3.3 above.

For
purposes of this Section 3.6, “Change of Control” means the occurrence of any
of the following:

(1)                                  any
person or group of related persons for purposes of Section 13(d) of the
Exchange Act (a “Group”), other than Richard E. Jacobs, Jeffrey P. Jacobs and
their related trusts becomes the beneficial owner of more than 331¤3% of the total
voting power of the Company’s or its parent’s voting stock, and Richard E.
Jacobs, Jeffrey P. Jacobs and their related trusts beneficially own, in the
aggregate, a lesser percentage of the total voting power of the voting stock of
the Company or its parent than such other person or group and do not have the
right or ability by voting power, contract or otherwise to elect or designate
for election a majority of the Board of Directors of the Company or its parent;

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(2)                                  there
is consummated any sale, lease, exchange or other transfer (in one transaction
or a series of related transactions) of all or substantially all of the assets
of the Company to any person or group, together with any affiliates thereof
and/or any of their affiliates; or

(3)                                  there
is consummated any consolidation or merger of the Company or its parent in
which the Company or its parent is not the continuing or surviving person or
pursuant to which the common stock of the Company or its parent would be
converted into cash, securities or other property, other than a merger or
consolidation of the Company or its parent in which the holders of the capital stock
of the Company or its parent outstanding immediately prior to the consolidation
or merger hold, directly or indirectly, at least a majority of the voting power
of the surviving corporation immediately after such consolidation or merger.

ARTICLE IV

CONFIDENTIALITY
AND COMPETITION

Section
4.1                                   Further
Obligations of the Executive During and After Employment.

(a)                                  The
Executive agrees that during the term of his employment under this Agreement
and for an additional period of one year, he will engage in no business
activities which are or may be competitive with, or which might place him in a
competing position to that of, the Company or any Affiliate except as
authorized by the Company’s Board of Directors in its reasonable discretion.

(b)                                 The
Executive realizes that during the course of his employment, the Executive will
have produced and/or have access to confidential business plans, information,
business opportunity records, notebooks, data, marketing strategies, trade
secrets, customer lists and account lists of the Company and its affiliates (“Confidential
Information”).  Therefore, during or
subsequent to his employment by the Company, or by an affiliate, the Executive
agrees to hold in confidence and not to directly or indirectly disclose or use
or copy or make lists of any such Confidential Information, except to the
extent authorized by the Company in writing. 
All records, files, business plans, documents, equipment and the like,
or copies thereof, relating to Company’s business, or the business of an affiliated
company, which the Executive shall prepare, or use, or come into contact with,
shall remain the sole property of the Company, or of an affiliated company, and
shall not be removed from the Company’s or the affiliated company’s premises
without its written consent, and shall be promptly returned to the Company upon
termination or resignation of employment with the Company or its affiliated
companies.

(c)                                  Because
of his employment by the Company, the Executive will have access to secrets and
confidential information about the Company, its business plans, its customers,
its business opportunities, its expansion plans into other geographic areas and
its methods of doing business.  The
Executive agrees that for the Term of this Agreement and an additional period
of one year he will not take any actions which are calculated to persuade any
employee, customer, vendor or supplier of the Company to terminate or modify in
any adverse manner his or its association with the Company.

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(d)                                 In
the event a court of competent jurisdiction finds any provision of this Section
4.1 to be so overbroad as to be unenforceable, then such provision shall be
reduced in scope by the court, to the extent deemed necessary by the court to
render the provision reasonable and enforceable.  Executive acknowledges and agrees that any
breach of this Agreement by Executive would cause immediate irreparable harm to
the Company.  Executive agrees that
should he violate any of the terms and conditions of this Agreement, the
Company, at its sole discretion, shall be entitled to seek to obtain immediate
injunctive relief and enjoin further and future violations of this Agreement.

ARTICLE V

DISABILITY
AND ILLNESS

Section
5.1                                   Disability
and Salary Continuation.

(a)                                  Definition
of Total Disability.  For purposes of
this Agreement, the terms “totally disabled” and “total disability” shall mean
disability as defined in any total disability insurance policy or policies, if
any, in effect with respect to the Executive. 
If no insurance policy is in effect, “total disability” shall mean a
medically determinable physical or mental condition, which, in the opinion of
two physicians chosen by the mutual consent of the parties, renders the
Executive unable to perform substantially all of the duties required pursuant
to this Agreement.  Total disability
shall be deemed to have occurred on the date of the disabling injury or onset
of the disabling illness, as determined by the two independent physicians.  In the event that the two independent
physicians are unable to agree as to the date of the disabling injury or onset
of the disabling illness, such date shall be deemed to be the later of the two
dates determined by the physicians chosen pursuant to this Section 5.1(a).

(b)                                 Salary
Continuation.  If the Executive
becomes totally disabled during the term of this Agreement, his full salary
shall be continued for 90 days from the date of the disabling injury or onset
of the disabling illness as determined in accordance with the provisions of
Section 5.1(a) above and thereafter the Executive’s employment may be
terminated in accordance with the provisions of Section 3.3.

Section 5.2                                   Illness.  If the Executive is unable to perform the
services required under this Agreement by reason of illness or physical injury
not amounting to total disability, also as determined in this Article, the
compensation otherwise payable to the Executive under this Agreement shall be
continued for a period of six months and he shall be entitled to participate in
the bonus payable in Section 2.4 with respect to the year in which the illness
occurred prorated for the year based on the number of months worked during such
year compared to 12 after which the Company shall have no further obligation to
the Executive.

ARTICLE VI

GENERAL
MATTERS

Section
6.1                                   Governing
Law.  This Agreement shall be
governed by the laws of the State of Colorado and shall be construed in
accordance therewith.

Section 6.2                                   No
Waiver.  No provision of this
Agreement may be waived except by an agreement in writing signed by the waiving
party.  A waiver of any term or provision
shall not be construed as a waiver of any other term or provision.

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Section 6.3                                   Amendment.  This Agreement may be amended, altered or
revoked at any time, in whole or in part, by filing with this Agreement a
written instrument setting forth such changes, signed by each of the parties.

Section 6.4                                   Benefit.  This Agreement shall be binding upon the
Executive and the Company, and shall not be assignable by either party without
the other parties’ written consent.

Section 6.5                                   Severability.  If any provision of this Agreement is
declared by any court of competent jurisdiction to be invalid for any reason,
such invalidity shall not affect the remaining provisions.  On the contrary, such remaining provisions
shall be fully severable, and this Agreement shall be construed and enforced as
if such invalid provisions had not been included in the Agreement.

Section 6.6                                   Effective
Date.  The effective date of this
Agreement shall be August 1, 2006.

Section 6.7                                   Arbitration.  The Company and the Executive expressly agree
that all disputes arising out of this Agreement shall be resolved by
arbitration in accordance with the following provisions.  Either party must demand in writing such
arbitration within 10 days after the controversy arises by sending a notice to
arbitrate to both the other party and to any recognized and reputable
alternative dispute resolution firm, such as the Judicial Arbitrators Group
located in Denver, Colorado.  The
controversy shall then be arbitrated pursuant to the rules promulgated by any
such firm at the firm’s offices located in Denver, Colorado. The parties will
select by mutual agreement the arbitrator or arbitrators (hereinafter
collectively referred to as “arbitrator”) to hear and resolve the
controversy.  The express terms of this
Agreement and the laws of the State of Colorado shall govern the
arbitrator.  The arbitrator’s decision
shall be final and binding on the parties and shall bar any suit, action, or
proceeding instituted in any federal, state, or local court or administrative
tribunal.  Notwithstanding the preceding
sentence, the arbitrator’s judgment may be entered in any court of competent
jurisdiction.  These arbitration
provisions shall survive the termination of this Agreement.

Section
6.8                                  Executive’s Representation.  The Executive represents that he has engaged
legal counsel to review this Agreement and advise him with respect to each
Section hereof.

	
  

  	
  JACOBS ENTERTAINMENT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Stephen R. Roark

  
	
   

  	
   

  	
   Stephen R.
  Roark

  
	
   

  	
   

  	
   Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Ian M. Stewart

  

 

 6EXHIBIT 10.26

EXECUTIVE
EMPLOYMENT AGREEMENT

(“Agreement”)

EXECUTIVE EMPLOYMENT AGREEMENT, effective December 5, 2006 (“Effective Date”), by and between Jacobs Entertainment, Inc., a
Colorado corporation (the “Company”) and Brett Kramer (the “Executive”).

WHEREAS, the Company desires to employ the Executive
on a full-time basis, and the Executive desires to be so employed by the
Company, from and after the date of this Agreement.

NOW, THEREFORE, in consideration of the mutual
covenants contained herein, the parties agree as follows:

ARTICLE
I

EMPLOYMENT DUTIES AND BENEFITS

Section 1.1                                   Employment.  The
Company hereby employs the Executive as Chief Financial Officer of the
Company.  The Executive accepts such
employment and agrees to perform the duties and responsibilities assigned to
him under this Agreement.

Section 1.2                                   Duties and Responsibilities. 
During the period of employment, Executive agrees to serve as the Chief
Financial Officer of the Company and in such other offices and directorships of
the Company and of its subsidiaries and related companies (collectively, “affiliates”)
to which he may be elected or appointed, and to perform the duties commensurate
with such positions and such other reasonable and appropriate duties as may be
requested of him by the Chief Executive Officer and/or President of the
Company, in accordance with this Agreement and in compliance with all
applicable laws and regulations. 
Excluding periods of vacation and sick leave to which Executive is
entitled, Executive shall devote such time, energy, and skill to the business
and affairs of the Company and its affiliates and to the promotion of their
interests as is necessary to perform the duties required of him by this
Agreement.

Section 1.3                                   Working Facilities; Location.  The
Executive shall be furnished with facilities and services suitable to his
position and adequate for the performance of his duties under this
Agreement.  The principal place of
performance by Executive of his duties hereunder shall be at the offices of the
Company in Golden, Colorado or at such other location as may reasonably be
required to travel outside that area in the performance of Executive’s
responsibilities.

Section 1.4                                   Vacations.  The
Executive shall be entitled each year during the Term, as defined below, to a
vacation with full salary and benefits, for the number of weeks set forth in
the Company’s Employee Handbook.

Section 1.5                                   Vehicle Allowance.  The
Executive shall be paid a vehicle allowance of approximately $600 per month, or
at his election, the Company shall lease for not more than $600 per month a
vehicle suitable for travel from Denver to Black Hawk, Colorado in all weather
conditions.

Section 1.6                                   Expenses.  The
Executive is authorized to incur reasonable expenses for promoting the business
of the Company in all respects, including expenses for entertainment, travel
and 

 1
 

 

similar items.  The Company will
promptly reimburse the Executive for all such expenses upon the presentation by
the Executive, from time-to-time, of an itemized account of such expenditures.

Section
1.7                                   Benefit Plans.  From
the effective date of this Agreement, the Executive shall be entitled to
participate in benefit plans provided to employees of the Company.  Such participation shall be based upon the
policies established in the Company’s Employee Handbook as applicable to the
Executive.

ARTICLE
II

COMPENSATION

Section 2.1                                   Base Salary.  The
Company shall pay to the Executive a Base Salary of $200,000 in the first year
of this Agreement, $225,000 in the second year of this Agreement, and $250,000
in the final year of this Agreement payable in accordance with the Company’s
payroll and withholding policies.

Section
2.2                                   Bonus and Bonus Plan
Participation.  The
Executive is entitled to participate in a bonus plan or incentive plan as
formulated by the Company’s Board of Directors, Compensation Committee or Chief
Executive Officer and/or President.  Within
60 days after the date of this Agreement, and at the beginning of each calendar
year thereafter during the Term hereof, the Chief Executive Officer and/or
President of the Company shall establish written goals and performance criteria
for the Executive.  If such goals and
performance criteria for the Executive are met for a particular year, the
Executive shall be entitled to a bonus of up to 35% of his Base Salary.  Subject to Sections 3.3 and 3.4, the bonus shall be payable only if the
Executive is employed by the Company at December 31 of each year for which the
bonus is determined.

ARTICLE
III

TERM OF EMPLOYMENT AND TERMINATION

Section 3.1                                   Term.  This
Agreement shall be for a period of three years commencing on December 5, 2006 and ending three years thereafter, subject, however, to earlier
termination during such period as provided in this Article (the “Term”).

Section 3.2                                   Termination by the Company With
Cause.  The
Company may terminate the Executive’s employment, at any time, for cause upon
ten days’ written notice and opportunity for the Executive to remedy any
non-compliance with the terms of this Agreement (if such non-compliance can be
remedied).  Grounds for termination “for
cause” shall be one or more of the following: 
(i) intentional and material breach of his duty of loyalty or care to
the Company, (ii) gross negligence or willful misconduct in performance of his
duties during the course of his employment, (iii) failure to abide by the
corporate policies and procedures set forth in the Company’s Employee Handbook;
(iv) failure to execute the reasonable and lawful instructions of the Company’s
Chief Executive Officer and/or President relating to the operation of the
Company’s business; (v) conviction of any felony crime or loss or material
impairment of his gaming license in Colorado, Nevada, or any jurisdiction in
which the Company conducts its business; and (vi) Executive’s inability to
perform his duties hereunder for a period of more than 30 days because of a
restraining order, injunction or other legal prohibition..  Upon the date of termination of the Executive’s
employment pursuant to this Section 3.2, the Company’s obligation to pay any
compensation including bonuses shall terminate, at which time the Company shall
be responsible for compensating the Executive for any unpaid salary, vacation
time not taken and unreimbursed expenses. 
Subject to this exception and the obligation of the Company to
compensate the

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Executive through the notice period, no other compensation shall be
payable to the Executive should this Agreement be terminated pursuant to this
Section 3.2.  The one-year noncompetition
covenant in Section 4.1(c) below shall begin to run on the date of termination
under this Section 3.2.

Section 3.3                                 Termination by the Company Without
Cause.  If
the Executive’s employment is terminated by the Company, without cause, all
compensation shall cease, but the Company shall be obligated to compensate the
Executive with a lump sum severance payment equal to a total of six months of
salary compensation (i.e. one-half of the Base Salary then being paid to the
Executive).  In the event the Executive’s
employment is terminated pursuant to this Section 3.3, the Executive shall be
entitled to participate in the bonus payable pursuant to Section 2.2, with
respect to the year in which his employment is terminated, prorated for the
year based on the number of full months employed during such year compared to
12.  In addition, the non-competition
covenants in Sections 4.1 (a) and (c) below shall be automatically terminated
on the effective date of any termination of Executive’s employment by the
Company without cause.

Section 3.4                                 Termination upon Death of the
Executive.  In
addition to any other provision relating to termination, this Agreement shall
terminate upon the Executive’s death.  In
such event, all unpaid compensation, compensation for vacation time not taken
by the Executive and all expense reimbursements due to the Executive shall be
paid to the Executive’s estate.  In the
event Executive’s employment is terminated pursuant to this Section 3.4, the
Executive’s estate shall be entitled to a death benefit equal to six months of
salary compensation (i.e. one-half of the Base Salary then being paid to the
Executive), and to participate in the bonus pursuant to Section 2.2 with
respect to the year in which his employment is terminated pro rated for the
year based on the number of full months worked during such year compared to 12.

Section 3.5                                 Termination by the Executive. 
This Agreement may be
terminated by the Executive upon 60 days prior written notice, in which event
the Executive shall be entitled to salary compensation only during the notice
period (i.e. two months from the date of notice at the Base Salary rate then in
effect) and no pro rated bonus shall be paid or payable.  In the event the Executive’s employment is
terminated pursuant to this Section 3.5 the one-year noncompetition covenants
in Sections 4.1 (a) and (c) below shall begin to run 60 days after such notice
of termination.

Section 3.6                                   Termination upon Change of
Control.  (a) If during the Term there is a
Change of Control of the Company and the Executive is not offered, by the
acquiring company or person, an employment position, or not offered an
employment position satisfactory to him, he shall be deemed Terminated Without
Cause and shall be entitled to a severance payment in an amount equal to one
year’s Base Salary, which shall be in addition to amounts payable to the
Executive under Section 3.3 above.

For
purposes of this Section 3.6, “Change of Control” means the occurrence of any
of the following:

(1)                                  any
person or group of related persons for purposes of Section 13(d) of the
Exchange Act (a “Group”), other than Richard E. Jacobs, Jeffrey P. Jacobs and
their related trusts becomes the beneficial owner of more than 331¤3% of the total
voting power of the Company’s or its parent’s voting stock, and Richard E.
Jacobs, Jeffrey P. Jacobs and their related trusts beneficially own, in the
aggregate, a lesser percentage of the total voting power of the voting stock of
the Company or its parent than such other person or group and do not have the right
or ability by voting power, contract or otherwise to elect or designate for
election a majority of the Board of Directors of the Company or its parent;

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(2)                                  there
is consummated any sale, lease, exchange or other transfer (in one transaction
or a series of related transactions) of all or substantially all of the assets
of the Company to any person or group, together with any affiliates thereof
and/or any of their affiliates; or

(3)                                  there
is consummated any consolidation or merger of the Company or its parent in
which the Company or its parent is not the continuing or surviving person or
pursuant to which the common stock of the Company or its parent would be
converted into cash, securities or other property, other than a merger or
consolidation of the Company or its parent in which the holders of the capital
stock of the Company or its parent outstanding immediately prior to the
consolidation or merger hold, directly or indirectly, at least a majority of
the voting power of the surviving corporation immediately after such
consolidation or merger.

ARTICLE IV

CONFIDENTIALITY AND COMPETITION

Section 4.1                                   Further Obligations of the
Executive During and After Employment.

(a)                                  The Executive agrees that during the term of
his employment under this Agreement and for an additional period of one year,
he will engage in no business activities which are or may be competitive with,
or which might place him in a competing position to that of, the Company or any
Affiliate except as authorized by the Company’s Board of Directors in its
reasonable discretion.

(b)                                 The Executive realizes that during the course
of his employment, the Executive will have produced and/or have access to
confidential business plans, information, business opportunity records,
notebooks, data, marketing strategies, trade secrets, customer lists and
account lists of the Company and its affiliates (“Confidential Information”).  Therefore, during or subsequent to his
employment by the Company, or by an affiliate, the Executive agrees to hold in
confidence and not to directly or indirectly disclose or use or copy or make
lists of any such Confidential Information, except to the extent authorized by
the Company in writing.  All records,
files, business plans, documents, equipment and the like, or copies thereof,
relating to Company’s business, or the business of an affiliated company, which
the Executive shall prepare, or use, or come into contact with, shall remain
the sole property of the Company, or of an affiliated company, and shall not be
removed from the Company’s or the affiliated company’s premises without its
written consent, and shall be promptly returned to the Company upon termination
or resignation of employment with the Company or its affiliated companies.

(c)                                  Because of his employment by the Company, the
Executive will have access to secrets and confidential information about the
Company, its business plans, its customers, its business opportunities, its
expansion plans into other geographic areas and its methods of doing business.  The Executive agrees that for the Term of
this Agreement and an additional period of one year he will not take any
actions which are calculated to persuade any employee, customer, vendor or
supplier of the Company to terminate or modify in any adverse manner his or its
association with the Company.

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(d)                                 In the event a court of competent
jurisdiction finds any provision of this Section 4.1 to be so overbroad as to
be unenforceable, then such provision shall be reduced in scope by the court,
to the extent deemed necessary by the court to render the provision reasonable
and enforceable.  Executive acknowledges
and agrees that any breach of this Agreement by Executive would cause immediate
irreparable harm to the Company. 
Executive agrees that should he violate any of the terms and conditions
of this Agreement, the Company, at its sole discretion, shall be entitled to
seek to obtain immediate injunctive relief and enjoin further and future
violations of this Agreement.

ARTICLE V

DISABILITY AND ILLNESS

Section 5.1                                   Disability and Salary
Continuation.

(a)                                  Definition of Total Disability.  For
purposes of this Agreement, the terms “totally disabled” and “total disability”
shall mean disability as defined in any total disability insurance policy or
policies, if any, in effect with respect to the Executive.  If no insurance policy is in effect, “total
disability” shall mean a medically determinable physical or mental condition,
which, in the opinion of two physicians chosen by the mutual consent of the
parties, renders the Executive unable to perform substantially all of the
duties required pursuant to this Agreement. 
Total disability shall be deemed to have occurred on the date of the
disabling injury or onset of the disabling illness, as determined by the two
independent physicians.  In the event
that the two independent physicians are unable to agree as to the date of the
disabling injury or onset of the disabling illness, such date shall be deemed
to be the later of the two dates determined by the physicians chosen pursuant
to this Section 5.1(a).

(b)                                 Salary Continuation.  If
the Executive becomes totally disabled during the term of this Agreement, his
full salary shall be continued for 90 days from the date of the disabling
injury or onset of the disabling illness as determined in accordance with the
provisions of Section 5.1(a) above and thereafter the Executive’s employment
may be terminated in accordance with the provisions of Section 3.3.

Section 5.2                                   Illness.  If
the Executive is unable to perform the services required under this Agreement
by reason of illness or physical injury not amounting to total disability, also
as determined in this Article, the compensation otherwise payable to the
Executive under this Agreement shall be continued for a period of six months
and he shall be entitled to participate in the bonus payable in Section 2.4
with respect to the year in which the illness occurred prorated for the year
based on the number of months worked during such year compared to 12 after
which the Company shall have no further obligation to the Executive.

ARTICLE VI

GENERAL MATTERS

Section 6.1                                   Governing Law.  This
Agreement shall be governed by the laws of the State of Colorado and shall be
construed in accordance therewith.

Section
6.2                                   No Waiver.  No
provision of this Agreement may be waived except by an agreement in writing
signed by the waiving party.  A waiver of
any term or provision shall not be construed as a waiver of any other term or
provision.

 5
 

 

Section 6.3                                   Amendment.  This
Agreement may be amended, altered or revoked at any time, in whole or in part,
by filing with this Agreement a written instrument setting forth such changes,
signed by each of the parties.

Section 6.4                                   Benefit.  This
Agreement shall be binding upon the Executive and the Company, and shall not be
assignable by either party without the other parties’ written consent.

Section 6.5                                   Severability.  If
any provision of this Agreement is declared by any court of competent
jurisdiction to be invalid for any reason, such invalidity shall not affect the
remaining provisions.  On the contrary,
such remaining provisions shall be fully severable, and this Agreement shall be
construed and enforced as if such invalid provisions had not been included in
the Agreement.

Section 6.6                                   Effective Date.  The
effective date of this Agreement shall be December 5, 2006.

Section 6.7                                   Arbitration.  The
Company and the Executive expressly agree that all disputes arising out of this
Agreement shall be resolved by arbitration in accordance with the following
provisions.  Either party must demand in
writing such arbitration within 10 days after the controversy arises by sending
a notice to arbitrate to both the other party and to any recognized and
reputable alternative dispute resolution firm, such as the Judicial Arbitrators
Group located in Denver, Colorado.  The
controversy shall then be arbitrated pursuant to the rules promulgated by any
such firm at the firm’s offices located in Denver, Colorado.  The parties will select by mutual agreement
the arbitrator or arbitrators (hereinafter collectively referred to as “arbitrator”)
to hear and resolve the controversy.  The
express terms of this Agreement and the laws of the State of Colorado shall
govern the arbitrator.  The arbitrator’s
decision shall be final and binding on the parties and shall bar any suit,
action, or proceeding instituted in any federal, state, or local court or
administrative tribunal.  Notwithstanding
the preceding sentence, the arbitrator’s judgment may be entered in any court
of competent jurisdiction.  These arbitration
provisions shall survive the termination of this Agreement.

Section 6.8                                 Executive’s Representation.  The
Executive represents that he has engaged legal counsel to review this Agreement
and advise him with respect to each Section hereof.

	
  

  	
  JACOBS ENTERTAINMENT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /s/ Jeffrey P. Jacobs

  
	
   

  	
   

  	
   Jeffrey P.
  Jacobs

  
	
   

  	
   

  	
   Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Brett Kramer

  
	
   

  	
  Brett Kramer

  

 

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