Document:

Prepared by MerrillDirect

Exhibit 10.14

[MTR GAMING GROUP, INC. LETTERHEAD]

 

 

June 11, 2001

 

Mr. Donald J.
Duffy

c/o Meyer, Duffy & Associates

780 Third Avenue, 15th Floor

New York, NY  10017

                           Re:       Nomination
to Board of Directors

Dear Mr. Duffy:

             On behalf of MTR Gaming Group, Inc.,
I am pleased to let you know that the board of directors has nominated you for
membership as an independent member of the board and the Audit Committee of the
Board.

             Your compensation for service on
the board will be as follows:

             1.          Stock
Purchase Options.  Upon your
acceptance of the nomination and approval by the Company’s Board of Directors
(the “Commencement Date”), and as an inducement to you to become a director of
the Company, for each year of service you will receive options to purchase
25,000 shares of common stock of the company (the “Options”).  The Options will be exercisable for a term
of five (5) years from the date of grant. 
For the first year of service, the grant date will be the Commencement
Date.  In subsequent years, your Options
under this Agreement will be granted to you by the Board when it grants Options
to employees generally.  The Options
will vest and be deemed earned immediately.

             2.          Registration.  At its sole cost, the Company will register
the shares of common stock underlying the Options for public sale by including
such shares in any registration statement the Company determines to file with
the Securities and Exchange Commission with respect to employee compensation.

             3.          Recapitalization.  If the Company declares a forward or reverse
split of its common stock, determines to exchange the common stock of the
Company for the equity securities of another issuer, or otherwise undergoes a
recapitalization, then the terms of the Options shall be adjusted or exchanged
equitably.

Mr. Don Duffy

June 11, 2001

Page 2

             4.          Annual
Fee.  For each year of service on
the Company’s Board of Directors you will receive an annual fee of
$12,000.  You will receive a pro rated
portion of such annual fee for any period of service that is less than one full
year.

             5.          Meeting
Fees.  For each regular meeting of
the board of directors, audit committee, or shareholders you attend, you will
receive a fee of $1,500 and reimbursement of expense for travel, food, and
lodging you incur in attending such meetings.

             6.          Conflict
of Interest.  By your signature, you
also acknowledge your receipt of and agreement to comply with the Company’s
policy concerning conflicts of interest, a copy of which accompanies this
letter.

             If these terms are acceptable to
you, please sign where indicated below and return this letter to me, at which
time the Commencement Date, as defined above, will have occurred.  We look forward to your joining the Company.

	 	 	Very truly yours,
	 	 	 
	 	 	/s/ 
  Edson R. Arneault
	 	 	

	 	 	Edson R. Arneault
	 	 	President
	 	 	 
	AGREED AND ACCEPTED:	 	 
	 	 	 
	/s/ 
  Donald J. Duffy	 	 
	

	 	 
	Donald J. DuffyPrepared by MerrillDirect

Exhibit
10.15

AIA Document A101-1997

Standard Form
of Agreement Between Owner and Contractor

where the basis of payment is a STIPULATED
SUM

AGREEMENT made
as of the 12th day of June in the year of 2001

BETWEEN the
Owner:

Mountaineer
Park, Inc.

P.O. Box 358

Chester, WV  26034

and the
Contractor

Just-Mark
Construction, Inc.

P.O. Box 14054

Pittsburgh, PA  15239

The Project is:

Mountaineer
Gaming and Race Track Resort: Hotel Construction

The Architect
is:

Devlin Design

681 Washington Road

Suite 220

Pittsburgh, PA  15228

The Owner and
Contractor agree as follows.

ARTICLE 1 THE CONTRACT
DOCUMENTS

The Contract Documents consist of this
Agreement, Conditions of the Contract (General, Supplementary and other
Conditions), Drawings, Specifications, Addenda issued prior to execution of
this Agreement, other documents listed in this Agreement and Modifications
issued after execution of the Agreement; these form the Contract, and are as
fully a part of the Contract as if attached to this Agreement or repeated
herein.  The Contract represents the
entire and integrated agreement between the parties hereto and supersedes prior
negotiations, representations or agreements, either written or oral.  An enumeration of the Contract Documents,
other than Modifications, appears in Article 8.

ARTICLE 2     THE WORK OF
THIS CONTRACT

The Contractor shall fully execute the Work
described in the Contract Documents, except to the extent specifically
indicated in the Contract Documents to be the responsibility of others. Scope
of Work for Hotel Construction:  The
Scope of Work as more fully set forth in the Contract Documents shall be deemed
to include but not be limited to: 
foundation preparation and completion utilizing previously installed
augercast piles; steel erection and construction of a five (5) story hotel with
porte-a-cochere, partial mezzanine in the Grand Lobby and consisting of
approximately 218,000 square feet on a footprint of 37,790 square feet per
floor and containing 261 hotel rooms together with all required fire and life
safety systems, indoor pool, outdoor courtyard, upscale steakhouse restaurant
with kitchen, retail space (including ice cream shop, video arcade, and retail
area) and administrative areas; finished package, installation of all room
finishes, window treatments, furniture, fixtures and equipment for the Hotel
through the issuance of final Certificate of Occupancy for the Hotel, public
areas and guest rooms.

ARTICLE 3     DATE OF COMMENCEMENT AND SUBSTANTIAL
COMPLETION

3.1        The
date of commencement of the Work shall be the date of this Agreement unless a
different date is stated below or provision is made for the date to be fixed in
a notice to proceed issued by the Owner.

Commencement Date – June 12, 2001.

If, prior to the commencement of the Work, the
Owner requires time to file mortgages, mechanic’s liens and other security
interests, the Owner’s time requirement shall be as follows:

N/A

3.2        The
Contract Time shall be measured from the date of commencement.

3.3        The
Contractor shall achieve Substantial Completion of the entire Work not later
than March 15, 2002.

Notwithstanding anything to the contrary
contained in Section 9.8.  For purposes
of this Article 3.3, Substantial Completion shall mean the completion by
Contractor of all items of work called for hereunder, including long lead items
such that the Project shall be open and accessible to the public for use as a
transient guest lodging facility with full service lobby, functioning
amenities, pool and porte-a-cochere and steakhouse (all as evidenced by such
Certificates of Occupancy or similar permits from appropriate governing
authorities as the case may be) except for cosmetic non-material finish work
(Punchlist) items as more fully defined in the General Conditions.  As more fully defined in Paragraph 9.8.2,
such Punchlist items to be completed as approved by Architect not later than
the date which is sixty (60) days from the Date of Substantial Completion.  All such work shall be undertaken and
completed in a manner which does not interfere with guest occupancy; and to the
extent possible during low traffic hours.

ARTICLE 4     CONTRACT SUM

4.1        The
Owner shall pay the Contractor the Contract Sum in current funds for
Contractor’s performance of the Contract. 
The Contract Sum shall be Dollars ($), subject to additions and
deductions as provided in the Contract Documents

4.1.1     Contractor
and Owner, each on their respective behalf, acknowledge that this Project and
the Work contemplated hereunder is to be undertaken as “Fast Track”
construction.  Accordingly, the parties
acknowledge that at this time, it is difficult to determine the aggregate
Contract Sum for the Work in its entirety or for that matter the parties
respective financial and timing obligations, except as they relate to
Substantial Completion.  Therefore, the
parties have agreed to structure the Contract Sum pricing through four (4)
phases (the “Phases”).

4.1.2     To
facilitate timing, cost efficiencies and accuracy (and thereby minimize the
need for Change Orders), the Architect shall in turn provide Pricing Plans for
each Phase in accordance with the Milestone Schedule attached hereto as
Addendum A-1 and made a part hereof. 
The Contractor shall then bid the Scope of Work for that particular
Phase and present such work to Owner in the form of a Change Order.  Administration and approval of the Change
Order shall be undertaken in accordance with Article 7 of the General
Conditions.

4.1.3     For
definitional purposes only, and as more fully provided in the Construction
Documents, the Phases are as follows:

(A)       Phase
I – Division 1 - 11, inclusive, 13 & 14, all as set forth in the Project
Manual and as more fully defined herein: 
Foundations; Site Preparation, Steel Fabrication and Erection; Roofing;
Concrete Deck Planks with required Coatings; Interior Framing; Drywall
Installation with Insulation; Laundry with Equipment; Pool Installation (but
not Finishes); Porte-A-Cochere Construction; Interior Finishes with Mirrors for
Guestrooms and Administrative Areas; Exterior Walls, Windows and Doors with
Hardware; Elevators; and General Conditions (for entire Work).

(B)        Phase
II – shall include the following: 
Completion and Installation of Mechanicals, Electrical, HVAC, Fire and
Life Safety and Plumbing.

(C)        Phase
III – shall include Finish Packages for all public areas including, but not
limited to, Lobby, Bar, Steakhouse, Retail Areas, Pool and Hallways.

(D)        Phase
IV – shall include installation of all Furniture, Fixtures and Equipment for
public areas, administrative areas and guest rooms.

4.1.4     The
Contract Sum for Phase I shall be Twelve Million, Eight Hundred Ninety-Five
Thousand, Seven Hundred Fifty-Seven and 00/100 Dollars ($12,895,757).

4.2        The
Contract Sum is based upon the following alternates, if any, which are
described in the Contract Documents and are hereby accepted by the Owner:

The Contract Sum shall include all costs of work
including, but not limited to, salaries and other compensation of Contractor’s
personnel, expense of a site office, overhead and general expenses, capital
expenses, rental costs for any machinery, profit wages and compensation of
construction workers, costs of storage and transportation of materials and
equipment payments to Contractors and Subcontractors, insurance premiums,
losses not covered by insurance, costs of debris removal, cost to prevent
damage, injury or loss and other costs associated with the work.

4.3        Unit
prices, if any, are as follows:

ARTICLE 5     PAYMENTS

5.1        PROGRESS
PAYMENTS

5.1.1     Based
upon Applications for Payment submitted to the Architect by the Contractor and
Certificates for Payment issued by the Architect, the Owner shall make progress
payment on the account of the Contract Sum to the Contractor as provided below
and elsewhere in the Contract Documents. 
All payments by Owner shall be conditioned upon acceptance by Owner and
delivery by Architect of Certificate for Payment together with releases and
lien waivers from Contractor and all Subcontractors conditional only upon
payment together with all appropriate back-up documentation, all as more fully
provided for in the General Conditions.

5.1.2     The
period covered by each Application for Payment shall be one calendar month
ending on the last day of the month.

5.1.3     Provided
that an Application for Payment is received by the Architect not later than the
25th day of a month, the Owner shall make payment to the Contractor
not later than the 15th day of the next following month.  If an Application for Payment is received by
the Architect after the application date fixed above, payment shall be made by
the Owner not later than twenty (20) days after the Architect receives the
Application for Payment.

5.1.4     Each
application for Payment shall be based on the most recent schedule of values
submitted by the Contractor in accordance with the Contract Documents.  The schedule of values shall be prepared in
such form and supported by such data to substantiate its accuracy as the
Architect may require.  This schedule,
unless objected to by the Architect, shall be used as a basis for reviewing the
Contractor’s Application for Payment.

5.1.5     Applications
for Payment shall indicate the percentage of completion of each portion of the
Work as of the end of the period covered by the Application for Payment.

5.1.6     Subject
to other provisions of the Contract Documents, the amount of each progress
payment shall be computed as follows:

	 	.1	Take that portion of the Contract Sum properly
  allocable to completed Work as determined by multiplying the percentage
  completion of each portion of the Work by the share of the Contract Sum
  allocated to that portion of the Work in the schedule of values, less
  retainage of Five percent (5%). 
  Pending final determination of cost to the Owner of changes in the
  Work, amounts not in dispute shall be included as provided in Subparagraph
  7.3.8 of AIA Document A201-1997.
	 	 	 
	 	.2	Add that portion of the Contract Sum properly
  allocable to materials and equipment delivered and suitable stored at the
  site for subsequent incorporation in the completed construction (or, if
  approved in advance by the Owner, suitably stored off the site at a location
  agreed upon in writing), less retainage of Five percent (5%);
	 	 	 
	 	.3	Subtract the aggregate of previous payments
  made by the Owner; and
	 	 	 
	 	.4	Subtract amounts, if any, for which the
  Architect has withheld or nullified a Certificate for Payment as provided in
  Paragraph 9.5 of AIA Document A201-1997.

5.1.7     The
progress payment amount determined in accordance with Subparagraph 5.1.6 shall
be further modified under the following circumstances:

	 	.1	Add, upon Substantial Completion of the Work,
  a sum sufficient to increase the total payments to the full amount of the
  Contract Sum, less such amounts as the Architect shall determine for
  incomplete Work, retainage applicable to such work and unsettled claims; and
	 	 	 
	 	.2	Add, if final completion of the Work is
  thereafter materially delayed through no fault of the Contractor, any
  additional amounts payable in accordance with Subparagraph 9.10.3 of  AIA Document A201-1997.

5.1.8     [Intentionally
Omitted]

5.1.9     Except
with the Owner’s prior approval, the Contractor shall not make advance payments
to suppliers for materials or equipment which have not been delivered and
stored at the site.

5.2        FINAL
PAYMENT

5.2.1     Final
payment, constituting the entire unpaid balance of the Contract Sum, shall be
made by the Owner to the Contractor when:

	 	.1	the Contractor has fully performed the
  Contract except for the Contractor’s responsibility to correct Work as
  provided in Subparagraph 12.2.2 of AIA Document A201-1997, and to satisfy
  other requirements, if any, which extend beyond final payment; and
	 	 	 
	 	.2	a final Certificate for Payment has been
  issued by the Architect.

5.2.2     The
Owner’s final payment to the Contractor shall be made no later than 30 days
after the issuance of the Architect’s final Certificate for Payment, or as
follows:

ARTICLE 6     TERMINATION OR SUSPENSION

6.1        The
Contract may be terminated by the Owner or the Contractor as provided in
Article 14 of AIA Document A201-1997.

6.2        The
Work may be suspended by the Owner as provided in Article 14 of AIA Document
A201-1997.

ARTICLE 7     MISCELLANEOUS PROVISIONS

7.1        Where
reference is made in this Agreement to a provision of AIA Document A201-1997 or
another Contract Document, the reference refers to that provision as amended or
supplemented by other provisions of the Contract Documents.

7.2        Payments
due and unpaid the Contract shall bear interest from the date payment is due at
the rate stated below, or in the absence thereof, at the legal rate prevailing
from time to time at the place where the Project is located.

7.3        The
Owner’s representative is:

	 	Patrick J. Arneault
	 	Mountaineer Park, Inc.
	 	P.O. Box 358
	 	Chester, WV 
  26034

7.4        The
Contractor’s representative is:

	 	Ronald Speicher
	 	Just-Mark Construction, Inc.
	 	P.O. Box 14954
	 	Pittsburgh, PA  15239

7.5        Neither
the Owner’s nor the Contractor’s representative shall be changed without ten
days written notice to the other party.

7.6 Other provisions:

7.6.1.    Simultaneous
with its execution of this Agreement, Contractor shall provide Owner with evidence
that it (solely on its own behalf and as an independent obligor (except to the
extent any shareholders shall be joined)) has obtained a Line of Credit
Facility from a nationally chartered lending institution in the available
principal amount of at least $1,000,000 U.S. 
It is acknowledged that this facility is critical to Owner’s security of
the financial strength of Contractor. 
And, any failure by Contractor to maintain this facility in good
standing with Contractor’s lender shall be deemed a default by Contractor
hereunder.

7.6.2     Contractor
and Owner, each on their respective behalf, acknowledge that damages for
failure to meet the timing requirements of this Agreement are difficult to
determine.  Accordingly, in order to
avoid the necessity of proving such damages upon a default by Contactor
hereunder and as compensation and not a penalty, Contractor agrees that in the
event it fails to achieve Substantial Completion of the Work on or before March
15, 2002, then Liquidated Damages shall accrue to the benefit of Owner from and
including March 16, 2002 through April 14, 2002 at a rate of $1,000 per
day.  In the event, however, Contractor
fails to achieve Substantial Completion of the Work on or before April 15,
2002, then Liquidated Damages shall accrue against Contractor from and
including April 16, 2002 at a rate of $25,000 per day until Substantial
Completion.  The exercise by Owner of
its rights hereunder, shall be in addition to and not in limitation of any of
its rights under the Agreement, specifically including the liability set forth
in Article 14 (except as they may relate to obtaining consequential or other
damages).  Further, in the event of the
exercise by Owner of its rights hereunder, Contractor shall, upon two (2) days
business notice pay the amount owing to Owner on demand equal to the number of
days multiplied by the per diem Liquidated Damage.  The Owner will have the right to deduct the total amount of
Liquidated Damages for which the Contractor may be liable under this Paragraph
from any payments then or thereafter due the Contractor.

7.6.3     The
Contractor shall keep full and detailed accounts and exercise such controls as
may be necessary for proper financial management under this Contract; the
accounting and control systems shall be satisfactory to the Owner, in its
reasonable discretion.  The Owner and
the Owner’s accountants shall be afforded reasonable access upon reasonable
advance notice to the Contractor’s records relating to this Contract.  The Contractor shall preserve these records
for a period of three years after final payment, or for such longer period as
may be required by law.

7.6.4     The
Contractor shall schedule and conduct meetings to discuss such matters as
procedures, progress and Project scheduling no more than once every week.  The Contractor shall prepare and promptly
distribute minutes to the Owner, Architect and subcontractors.  Contractor shall coordinate these meetings
with both the Owner and Architect.

7.6.5     Contractor
agrees it has unique skill and expertise in undertaking construction projects
such as the contemplated by this Agreement and as such agrees that none of its
duties or obligations hereunder are assignable.  Contractor cannot delegate its responsibilities and duties as
Contractor under this Agreement but specifically has the right to award
subcontracts to satisfy this Contract.

7.6.6     Contractor
shall be responsible for its own costs and compliance with all insurance
requirements and requirements of any governmental authority having jurisdiction
over the conduct of construction work in general, as opposed to Owner’s lease
with the Government, in the completion of the Work.  Further, Contractor acknowledges that it is not an agent,
partner, or joint venture of Owner.

ARTICLE 8     ENUMERATION OF CONTRACT DOCUMENTS

8.1        The
Contract Documents, except for Modifications issued after execution of this
Agreement, are enumerated as follows:

8.1.1     The
Agreement is this executed 1997 edition of the Standard Form of Agreement
Between Owner and Contractor, AIA Document A101-1999

8.1.2     The
General Conditions are the 1997 edition of the General Condition of the
Contract for Construction, AIA Document A201-1997, as amended and attached
hereto as Addendum No. A-2.

8.1.3     The
Supplementary and other Conditions of the Contract are those contained in the
Project Manual dated ____, and are as follows:

Document                                                Title                                             Pages

8.1.4     The
Specifications are those contained in the Project Manual dated as in
Subparagraph 8.1.3, and are as follows:

Section                                                                   Title                                             Pages

8.1.5     The
Drawings are as follows, and are dated unless a different date is shown below

Number                                                     Title                                             Date

8.1.6     The
Addenda, if any, are as follows:

Number                                                     Date                                             Pages

Portions of Addenda relating to bidding
requirements are not part of the Contract

Documents unless the bidding requirements are also enumerated in this Article
8.

8.1.7     Other
documents, if any, forming part of the Contract Documents are as follows:

             Schedule A-3 attached hereto, and
made a part hereof:

This Agreement is entered into as of the day and
year first written above and is executed in at least three original copies, of
which one is to be delivered to the Contractor, one to the Architect for use in
the administration of the Contract, and the remainder to the Owner.

 

	 	MOUNTAINEER PARK, INC.	JUST-MARK CONSTRUCTION, INC.
	 	(OWNER)	(CONTRACTOR)
	 	 	 
	 	 	 
	 	/s/ Edson R. Arneault	/s/ Anthony J. Pivik
	 	

	 	

	 
	 	Edson R. Arneault	Anthony J. Pivik
	 	CEO & President	President

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