Document:

Exhibit 10.1

 

Conformed Copy

 

AXCELIS TECHNOLOGIES, INC.

 

EXECUTIVE RETIREMENT AGREEMENT

 

THIS EXECUTIVE RETIREMENT AGREEMENT, dated as of January 17, 2011, is made by and between Axcelis Technologies, Inc. (hereinafter referred to as the “Company”) and Stephen G. Bassett (hereinafter referred to as “Executive”).  In consideration of the mutual covenants contained herein, the parties agree as follows:

 

1.                                       Retirement Date.   Executive’s employment with the Company will terminate on March 31, 2011 (the “Termination Date”).  As described in Section 2, Executive will receive the separation pay and benefits under this Agreement.  Prior to the Termination Date, the Executive shall cooperate with the reasonable requests of the Company to support the transition of the Executive’s duties to other Company personnel.

 

2.                                       Retirement Compensation.

 

2.1.                              Accrued Obligations.  Employee has been or will be as of the Termination Date paid in full for any and all wages, including accrued but unused vacation time.

 

2.2.                              Separation Pay.  The Company will make 39 weeks of Executive’s full base pay at the weekly rate of $5,769.23, less legally required payroll taxes, payable bi-weekly in accordance with the Company’s usual payroll cycle.

 

2.3.                              Axcelis Time Management (ATM).  After the Termination Date, Executive will receive a lump sum amount for his accrued ATM balance, if any. Overdrawn ATM time will be deducted from Executive’s final paycheck.

 

2.4.                              COBRA Payments.  If Executive elects to continue health coverage under the Company’s health plan in accordance with COBRA, the Company will pay for the full cost of such coverage until the earlier of (i) the date Executive begins full-time employment or full-time self-employment; or (ii) the end of the ninth month after the Date of Termination (December 31, 2011).

 

2.5.                              2010 Axcelis Management Incentive Plan Payments. To the extent not already paid in full as of the Termination Date, the Company will make on or before the Termination Date, any payments due to Executive under the Company’s 2010 Axcelis Management Incentive Plan without regard to the payment terms of the plan or Executive’s termination of employment.

 

2.6.                              Benefits.  Detailed information on the impact of Executive’s separation on Company-provided benefits is set forth on Attachment A which is attached hereto and incorporated herein.

 

 

2.7.                              Transition Assistance.  During the period (the “Transition Period”) from the Date of Termination until September 30, 2011 (the date 6 (six) months after the Date of Termination), the following provisions will apply:

 

(a)                                  Email.  The Company agrees to allow Executive to maintain webmail access to the Executive’s Axcelis email account until the earlier of the end of the Transition Period or the date on which Executive commences other employment.

 

(b)                                 Cell Phone.  The Company agrees to assign to the Executive the mobile phone owned by the Company and used by the Executive as of the Date of Termination and pay the Executive a lump sum amount to cover six months’ of cell phone premiums at the Executive’s plan level (but not more than $99 per month).

 

(c)                                  Outplacement.  At the request of Executive, the Company will pay up to $12,500 for an outplacement service for services rendered in assisting Executive in locating other employment, provided such payments are contingent upon Executive’s cooperation with the outplacement service and upon active efforts by Executive to locate another position.

 

2.8.                              Equity Actions.  The following modifications to equity grants held by the Executive will be effective on the Termination Date:

 

(a)                                  Acceleration of Vesting of Stock Options.  The Compensation Committee of the Board of Directors has resolved, in accordance with Section 6.03(c) of the 2000 Stock Plan, to accelerate the vesting of certain non-qualified stock options held by the Executive as set forth on Schedule 1 hereto.

 

(b)                                 Retirement Exercisability of Stock Options.  As provided in Section 6.03(e)(i) (B) of the 2000 Stock Plan, in light of Executive’s retirement, the vested non-qualified stock options held by the Executive remain exercisable until March 31, 2012, which is the first anniversary of the Executive’s termination of employment, as set forth on Schedule 1 hereto.

 

(c)                                  Acceleration of Vesting of Restricted Stock Units.  The Compensation Committee of the Board of Directors has resolved, in accordance with Section 7.04(c) of the 2000 Stock Plan, to accelerate the vesting of certain Restricted Stock Units held by the Executive as set forth on Schedule 1 hereto.

 

3.                                       Executive Acknowledgement of Compensation. The Executive acknowledges that in exchange for entering into this Agreement the Executive has received good, sufficient and valuable consideration in excess of that to which the Executive would otherwise have been entitled in the absence of this Agreement.  The Executive acknowledges that the Executive has been paid in full for any and all wages, including accrued unused vacation pay.  Unless otherwise provided for expressly in this Agreement, all other benefits have ceased as of the Termination Date.

 

4.                                       Effect of Breach on Compensation.   The Executive agrees that the compensation and benefits contained in this Agreement and which flow to the Executive from

 

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the Company are subject to termination, reduction or cancellation in the event that the Executive takes any action or engages in any conduct deemed by the Company to be in violation of this Agreement, provided however, that prior to any such termination , the Company will notify the Executive of the particular concern and provide the Executive with a reasonable opportunity to cure.

 

5.                                       Executive Obligations.

 

5.1.                              Return of Property.  The Executive shall return all papers, files, documents, computers, reference guides, equipment, keys, identification, credit cards, software, computer access codes, disks and institutional manuals, or other property belonging to the Company within one week after the Termination Date; provided the Executive shall return the laptop computer referenced in Section 2 above not later than the end of the Transition Period. The Executive shall not retain any copies, duplicates, reproductions or excerpts of any of the Company’s property.   The Executive may retain copies of all agreements between the Executive and the Company and other documents relating to his personal performance.

 

5.2.                              Nondisclosure of Confidential Information.  During the course of the Executive’s employment with the Company, the Executive has become acquainted with and/or developed confidential information belonging to the Company and its customers. The Executive agrees not to use or to disclose to any person or entity any confidential information of the Company or of any past or present customer of the Company, including but not limited to financial data or projections, customer lists, projects, economic information, systems, plans, methods, procedures, operations, techniques, know-how, trade secrets or merchandising or marketing strategies. In addition, Executive shall continue to be bound by the terms of  Employee Invention Assignment, and Confidentiality Agreement, which the Executive executed in connection with his employment. That Agreement is affixed hereto and incorporated by reference as Attachment B. The provisions of this Section 5.2 shall not apply to any such confidential information that is (a) presently publicly available or a matter of public knowledge or public domain generally without breach of this Agreement, or (b) lawfully received by the Executive from a third party who is or was not bound in any confidential relationship to the Company, or (c) required to be disclosed by the Executive pursuant to judicial or government order, provided the Executive shall give the Company reasonable notice prior to such disclosure and shall comply with any applicable protective order.

 

5.3.                              Nondisparagement.  Provided the Executive is not in breach of his obligations under this Agreement, the Company agrees not to disparage or make negative statements about the Executive. The Executive agrees not to disparage or make negative statements about the Company or any of its officers, directors, agents, employees, successors and assigns.

 

5.4.                              Non-Compete and Non-Solicitation.  The Executive hereby agrees with the Company that for a period of 12 months following the Termination Date:

 

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(a)                                  The Executive shall not, without the prior written consent of the Chief Executive Officer of the Company, directly or indirectly, engage in, be employed by, act as a consultant or advisor to, be a director, officer, owner or partner of, or acquire an interest in, any business engaged in manufacturing implant or dry strip semiconductor processing systems (a “competitive business”), nor directly or indirectly have any interest in, own, manage, operate, control, be connected with as a stockholder, lender, joint venturer, officer, employee, partner or consultant, or otherwise engage, invest or participate in any competitive business; provided, however, that nothing contained in this Section 5.4 shall prevent the Executive from investing or trading in publicly traded stocks, bonds, commodities or securities or in real estate or other forms of investment for Executive’s own account and benefit (directly or indirectly);

 

(b)                                 The Executive shall not actively solicit any employee of the Company or any of its subsidiaries or affiliates to leave the employment thereof; and the Executive shall not enter onto Company property without prior written consent from the Chief Executive Officer of the Company or other executive officer of the Company;

 

(c)                                  The Executive shall not induce or attempt to induce any customer, supplier, licensor, licensee or other individual, corporation or business organization having a business relationship with the Company or its subsidiaries or affiliates to cease doing business with the Company or its subsidiaries or affiliates or in any way interfere with the relationship between any such customer, supplier, licensor, licensee or other individual, corporation or business organization and the Company or its subsidiaries or affiliates.  Solicitation of customers for the purposes of this obligation refers to existing and/or contemplated products as of the time of this Agreement;

 

(d)                                 The applicable time periods set forth in this Section 5.4 shall be extended by the time of any breach by the Executive of any terms of this Agreement;

 

(e)                                  The provisions of Section 5.4 contain the sole and exclusive obligations of the Executive with respect to non-competition and non-solicitation other than those provided by law, if any; and

 

(f)                                    The Company acknowledges that negotiations or discussions between or among Executive and any third party about prospective employment, business ventures, or other opportunities shall not, alone, constitute a breach of Section 5.4(a) of this Agreement.

 

5.5.                              Resignations from Corporate Office.  Not later than the Termination Date, the Executive will execute and deliver to the Company his resignation as Executive Vice President and Chief Financial Officer of the Company, attached here to as Attachment C.  From time to time on or after the Termination Date, the Executive will execute such resignations from offices held in the Company’s subsidiaries, as the Company may reasonably request.  Executive expressly acknowledges that the compensation payable to Executive under this Agreement is in full satisfaction of any compensation due to him in connection with his corporate positions described in this Section 5.5.  It is understood that the force and effect of Attachment C arises exclusively in the context of, and as part of, this Agreement.

 

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5.6.                              Cooperation.  The Executive will cooperate fully with the Company in its defense of or other participation in any administrative, judicial or other proceeding arising from any charge, complaint or other action which has been or may be filed against the Company and with respect to which Executive has knowledge, provided, however, that the Company will pay all reasonable costs associated with such cooperation, including compensation for the Executive’s time at the Executive’s usual, and reasonable, rate.  The Executive agrees to be responsive to requests for information related to the smooth transition of a successor to his position.

 

6.                                       SEC Reporting and Applicability of the Company’s Insider Trading Policy.

 

6.1.                              Rule 144.  For the purposes of Rule 144 promulgated by the Securities Exchange Commission, the Executive shall cease to be an “affiliate” of the Company on the Termination Date.

 

6.2.                              Section 16 Reporting.  The Executive shall cease to be a reporting person under the Securities Exchange Act of 1934, as amended, as of the Termination Date, provided however, the Executive must file a Form 4 with the SEC to report any purchase, sale, or option exercise after the Termination Date if the transaction occurs within six months following a Form 4 transaction going the opposite way (e.g., sale vs. purchase) prior to the Termination Date.

 

7.                                       Insider Trading Policy.  Assuming the Executive does not acquire material non-public information after the Termination Date, beginning on the date two trading days after the Company’s public announcement of its earnings for the first fiscal quarter ending after the Termination Date, the Executive will no longer be subject to restrictions on trading arising under the Company’s insider trading policy.

 

8.                                       General Release and Covenant Not to Sue.

 

8.1.                              Release.  In consideration of the Company’s covenants in this Agreement, the Executive hereby releases and discharges the Company and its officers, directors, agents, employees, successors and assigns (“Released Parties”) from any and all claims by the Executive arising before the signing of this Agreement, including all claims arising out of the Executive’s employment with the Company or the termination thereof (except (1) those relating to performance of this Agreement and (2) the Company’s obligations under the Indemnification Agreement between the Executive and the Company dated June 26, 2003, a copy of which is attached hereto as Attachment D (the “Indemnification Agreement”)) and claims arising under common law and claims arising under federal or state labor and employment laws and laws prohibiting discrimination on the basis of age, sex, race, national origin or disability. The laws referred to in the preceding sentence include Title VII of the Civil Rights Act of 1964, as amended; the Equal Pay Act of 1963, as amended; the Age Discrimination in Employment Act of 1967 (ADEA), as amended; the Fair Labor Standards Act of 1938, as amended; the Americans With Disabilities Act of 1990, as amended; the Rehabilitation Act of 1973, as amended; the Family and Medical Leave Act of 1993, as amended; Chapter 151B of the Massachusetts General Laws, Chapter 149 of the

 

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Massachusetts General Laws; the Massachusetts Civil Rights Act and the Massachusetts Equal Rights Law; the Worker Adjustment and Retraining Notification (“WARN”) Act; Maryland Ann. Code Article 100 Sections 88-94, and Maryland Ann. Code Article 49B, Sections 1 et seq; or any other state or federal law, order, public policy or regulation affecting or relating to the rights and/or claims of employees.  Nothing in this Agreement shall be construed to be a release of certain ADEA and Title VII rights that is not allowed by law, except that the Executive waives and shall not accept any damages from any such claims.

 

8.2.                  Covenant Not to Sue.  The Executive represents and warrants that he has not filed any complaints, charges, or claims for relief against the Released Parties with any local, state or federal court or administrative agency.  The Executive agrees and covenants not to sue or bring any claims or charges against the Released Parties with respect to any matters arising out of or relating to the Executive’s employment with or separation from the Company, other than enforcement of the terms of this Agreement or the Indemnification Agreement.  In the event that the Executive institutes any such action, that claim shall be dismissed upon presentation of this Agreement and he shall reimburse the Company for all legal fees and expenses incurred in defending such claim and obtaining its dismissal.

 

8.3.                  No Implied Admission.  It is understood and agreed that this Agreement does not constitute any admission by the Company that any action taken with respect to the Executive was unlawful or wrongful, or that such action constituted a breach of contract or violated any federal or state law, policy, rule or regulation.

 

9.                                       Compliance with Federal Older Workers Benefit Protection Act of 1990.

 

9.1.                  Time to Consider Agreement.  The Executive acknowledges that he has been advised in writing to consult with an attorney and has had ample opportunity to consult with and review this Agreement with an attorney of his choice, and has been given a period of at least forty-five (45) days within which to consider whether to sign this Agreement.  If the Executive has signed this Agreement prior to the end of this forty-five (45) day period, he represents that he has done so knowingly and voluntarily.

 

9.2.                  Revocation Right.  It is agreed and understood that for a period of seven (7) days following the execution of this Agreement, which period shall end at 5:00 p.m. on the seventh day following the date of execution by the Executive, he may revoke this Agreement.  This Agreement will not become effective until this revocation period has expired.  This seven (7) day revocation period cannot be shortened by agreement of the parties or by any other means.

 

10.                                 Miscellaneous.

 

10.1.            Availability of Equitable Remedies.  The Executive agrees and warrants that the covenants contained herein are reasonable, that valid consideration has been and will be received therefor and that the agreements set forth herein are the result of arms-length negotiations between the parties hereto.  The Executive recognizes and acknowledges that the provisions of Section 5 are vitally important to the continuing welfare of the Company, and its subsidiaries and

 

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affiliates, and that money damages constitute a totally inadequate remedy for any violation thereof.  Accordingly, in the event of any such violation by the Executive, the Company, and its subsidiaries and affiliates, in addition to any other remedies they may have, shall have the right to institute and maintain a proceeding to compel specific performance thereof or to obtain an injunction restraining any action by the Executive in violation of Section 5.

 

10.2.            Severability.   In the event that any provision of this Agreement is found by a court, arbitrator or other tribunal to be illegal, invalid or unenforceable, then such provision shall not be voided, but shall be enforced to the maximum extent permissible under applicable law, and the remainder of this Agreement shall remain in full force and effect.

 

10.3.            Entire Agreement.  This Agreement and its Exhibits constitutes the entire agreement between the parties about or relating to the Executive’s termination of employment from the Company, or the Company’s obligations to the Executive with respect to his termination and fully supersedes any and all prior agreements (including but not limited to the Change of Control Agreement between the Company and the Executive dated May 12, 2005) or understanding between the parties, other than the Indemnification Agreement.  The Company represents and warrants that there has been no Change of Control as defined in the above-mentioned Change of Control Agreement prior to the date hereof and that no Change of Control transaction is contemplated by the Company as of the date hereof.   Upon execution of this Agreement, the obligations of the Executive and the Company relating to the Executive’s employment by the Company will arise solely and exclusively out of this Agreement and the Indemnification Agreement.

 

10.4.            Binding Benefit.  This Agreement shall be binding on the parties and upon their heirs, administrators, representatives, executors, successors and assigns and shall inure to their benefit and to that of their heirs, administrators, representatives, executors, successors and assigns.

 

10.5.            Amendments.  This Agreement may not be altered, amended or modified, except by a further written document signed by the Executive and the Company.

 

10.6.            Governing Law. This Agreement shall be governed by the laws of the Commonwealth of Massachusetts, without regard to or application of choice-of-law rules or principles.

 

10.7.            Limitations on Recovery.  In the event that the Executive institutes legal proceedings to enforce this Agreement, he agrees that the sole remedy available shall be enforcement of the terms of this Agreement and/or a claim for damages resulting from the breach of this Agreement, but that under no circumstances shall the Executive be entitled to receive or collect any damages for claims that Executive has released under this Agreement.

 

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IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first set forth above.

 

 

	
 
    	
AXCELIS TECHNOLOGIES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Lynnette C. Fallon
    
	
 
    	
Title:   Lynnette C. Fallon, EVP HR/Legal and
   General Counsel
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Stephen G. Bassett
    
	
 
    	
Stephen   G. Bassett
    

 

 

Attachments

 

	
Schedule 1
    	
 
    	
Equity Actions for Stephen G. Bassett
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Attachment   A
    	
 
    	
Benefits   after Termination Date
    
	
Attachment   B
    	
 
    	
Employee   Invention Assignment and Confidentiality Agreement
    
	
Attachment   C
    	
 
    	
Resignation   from Office
    
	
Attachment   D
    	
 
    	
Indemnification   Agreement dated June 26, 2003
    

 

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Schedule 1

 

Equity Actions for Stephen G. Bassett

 

	
Grant Date
    	
 
    	
Exercise Price
    	
 
    	
Expiration
   Date
    	
 
    	
Vested
   Shares as of
   March 31,
   2011
    	
 
    	
Unvested
   Shares as of
   March 31,
   2011
    	
 
    	
Effect of Retirement Package
    	
 
    
	
Options 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
12/18/2003
    	
 
    	
$
    	
9.90
    	
 
    	
12/18/2013
    	
 
    	
20,000
    	
 
    	
—
    	
 
    	
Exercisable   until 3/31/2012
    	
 
    
	
6/25/2004
    	
 
    	
$
    	
11.87
    	
 
    	
6/25/2014
    	
 
    	
25,000
    	
 
    	
—
    	
 
    	
Exercisable   until 3/31/2012
    	
 
    
	
12/27/2004
    	
 
    	
$
    	
7.97
    	
 
    	
6/25/2014
    	
 
    	
25,000
    	
 
    	
—
    	
 
    	
Exercisable   until 3/31/2012
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
11/17/2008
    	
 
    	
$
    	
0.70
    	
 
    	
11/17/2018
    	
 
    	
62,500
    	
 
    	
62,500
    	
 
    	
Eliminate   stock price condition and accelerate so 125,000 shares are fully vested and   exercisable until 3/31/2012
    	
 
    
	
11/16/2009
    	
 
    	
$
    	
1.16
    	
 
    	
11/16/2019
    	
 
    	
31,250
    	
 
    	
93,750
    	
 
    	
Accelerate   31,250 so 62,500 are vested and exercisable until 

 

3/31/2012;   62,500 expire
    	
 
    
	
7/15/2010
    	
 
    	
$
    	
1.60
    	
 
    	
7/15/2020
    	
 
    	
—
    	
 
    	
125,000
    	
 
    	
Expires
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Restricted Stock Units
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
7/1/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
40,058
    	
 
    	
—
    	
 
    	
Fully   vested, no impact
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
7/3/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
46,000
    	
 
    	
—
    	
 
    	
Fully   vested, no impact
    	
 
    
	
7/16/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
29,628
    	
 
    	
14,816
    	
 
    	
Accelerate   so fully vested on 

 

3/31/2011
    	
 
    
	
2/16/2010
    	
 
    	
 
    	
 
    	
 
    	
 
    	
33,488
    	
 
    	
—
    	
 
    	
Fully   vested, no impact
    	
 
    

 

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List of Attachments Omitted from the Executive Retirement Agreement by and between 
 Axcelis Technologies, Inc. (“Axcelis”) and Stephen G. Bassett, dated January 17, 2011 
 as filed with the Securities Exchange Commission (the “Commission”) on Form 8-K

 

	
Attachment   A
    	
 
    	
A   document providing detail on the status of Mr. Bassett’s employee   benefits following his termination of employment.
    
	
 
    	
 
    	
 
    
	
Attachment   B
    	
 
    	
A   copy of the Employee Invention Assignment and Confidentiality Agreement   between the Company and Mr. Bassett signed on December 19, 2003.
    
	
 
    	
 
    	
 
    
	
Attachment   C
    	
 
    	
The   form of resignation from office to be signed by Mr. Bassett
    
	
 
    	
 
    	
 
    
	
Attachment   D
    	
 
    	
A   copy of the Indemnification Agreement between the Company and   Mr. Bassett dated June 26, 2003
    
	
 
    	
 
    	
 
    
	
Axcelis will furnish supplementally a copy of any   omitted attachment to the Commission upon request.
    

 

10Exhibit 10.1

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (“Agreement”), which expressly includes and references non-competition, non-solicitation and confidentiality provisions, is made and entered into on the 18th day of January, 2011 (the “Agreement Date”) and effective as of the Effective Date (as defined below), by and between Isle of Capri Casinos, Inc., a Delaware corporation (“Isle”, together with its subsidiary and affiliated companies, the “Company”), and James B. Perry (“Employee”).

 

WHEREAS, Employee and Isle are currently parties to an employment agreement dated as of March 4, 2008, as amended (the “Prior Agreement”) pursuant to which Employee is employed as Isle’s Chief Executive Officer (“CEO”) and serves as Chairman of the Board of Directors of Isle (the “Board”);

 

WHEREAS, Employee and Isle desire that Employee transition out of his role as CEO on or before December 31, 2011, which transition will be effected by means of a written notice from Employee to the Board, which notice is accepted by the Board (the “Transition Notice”);

 

WHEREAS, from and after the effective date specified in the Transition Notice (the “Effective Date”, which date shall be no later than December 31, 2011), it is expected that Employee will serve as the Executive Chairman of the Board and Isle desires to continue to employ Employee in an executive capacity, and Employee desires to continue to perform services for, and to continue to be employed by, Isle in such capacity, all on the terms and conditions set forth herein;

 

WHEREAS, as a condition of Employee’s continuing employment, the Company desires to retain certain covenants from Employee including, but not limited to, the following: (a) to refrain from carrying on or engaging in a business similar to that of the Company; (b) to refrain from soliciting Employees of the Company for employment elsewhere; and (c) to protect and maintain the confidentiality of the Company’s trade secrets and any proprietary information, which the parties expressly acknowledge are a condition of Employee’s continued employment;

 

WHEREAS, Isle and Employee desire to set forth in writing the terms and conditions of their agreements and understandings with respect to Employee’s continued employment at Isle, as well as the covenants referenced above, and the parties expressly acknowledge that these covenants are a condition of Employee’s continued employment; and

 

WHEREAS, this Agreement shall become effective as of the Effective Date only if Employee is employed by Isle on the Effective Date and the Prior Agreement shall remain in effect until the Effective Date, subject to the terms and conditions thereof, whereupon the Prior Agreement shall be superseded by this Agreement.

 

NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions set forth in this Agreement, Isle and Employee agree as follows:

 

1.                                       Term of Employment; Duties; Compensation.

 

(a)                                  Term.  Isle hereby continues to employ Employee, and Employee accepts such continued employment and agrees to continue to perform services for the Company for an 

 

 

initial period beginning on the Effective Date and expiring on the third anniversary thereof  (the “Initial Term”) and for successive one (1)-year periods thereafter (the “Renewal Term(s)”), unless either: (i) the Company provides ninety (90) days’ written notice of non-renewal to Employee prior to the expiration of the Initial Term or applicable Renewal Term, or (ii) the Agreement is terminated at an earlier date in accordance with Section 2 or Section 3 of this Agreement (the Initial Term and the Renewal Terms together referred to as the “Term of Employment”).

 

(b)                                 Duties.  Subject to the terms and conditions of this Agreement, effective as of the Effective Date, Employee shall cease serving as the CEO and, for the Term of Employment, Employee will continue to be employed as an executive of Isle and shall continue to serve as the Executive Chairman of the Board.  In his capacity as an employee of Isle, Employee will perform and exercise such duties and powers incident to such office as may be assigned to or vested in Employee by the Board; provided, however, that none of his duties as an employee shall interfere with his duties as the Executive Chairman of the Board.  For the avoidance of doubt, Employee’s change in role shall not entitle him to any payments or benefits under the terms of the Prior Agreement and specifically shall not be treated as a termination for reasons other than “cause” as defined in the Prior Agreement or as a failure by the Company to continue the Prior Agreement.

 

(c)                                  Performance of Duties.  During the Term of Employment, Employee agrees to serve the Company faithfully and to the best of his ability and shall devote such business time, attention, skill and efforts to the performance of his duties for the Company as shall be reasonable necessary to carry out his duties hereunder.  The foregoing shall not preclude Employee from engaging in other civic endeavors and, with the approval of the Board, serving on charitable boards and other boards of directors so long as, in any case, the same do not interfere with the performance of his duties under this Agreement.

 

(d)                                 Compensation.  From and after the Effective Date and during the remaining Term of Employment, Isle shall pay to Employee as compensation for services to be rendered hereunder at the rate determined by the Compensation Committee of the Board (the “Compensation Committee”) immediately prior to the Effective Date taking into account the role of Employee from and after the Effective Date (the “Annual Base Salary”) payable in substantially equal monthly, or more frequent, payments, subject to increases, if any, as may be determined by the Compensation Committee.  In addition to the Annual Base Salary, Employee shall be entitled to participate in bonus plans and incentive plans (including equity-based pans) as determined in the sole discretion of the Compensation Committee and in any other employee benefit plans or programs of the Company as are or may be made generally available to similarly-situated employees of Isle.  Employee shall be entitled to vacation in accordance with the Isle’s policies for similarly-situated employees.

 

(e)                                  Office and Support Staff.  During the Term of Employment, Employee shall have the right to maintain his principal domicile in California, and he shall be entitled to an office and to a personal administrative and other assistance as provided generally with respect to other similarly-situated senior employees of Isle.

 

(f)                                    No Violation.  Employee represents and warrants to the Company that the execution and delivery of this Agreement by Employee, and the carrying out of Employee’s 

 

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duties on behalf of the Company as contemplated hereby, do not violate or conflict with the terms of any other agreements to which Employee is or was a party.

 

(g)                                 Expense Reimbursement.  The Company will pay or reimburse Employee for all reasonable and necessary out-of-pocket expenses incurred by him in the performance of his duties under this Agreement, subject to the presentment of appropriate vouchers in accordance with the Company’s policies for expense verification.  For the avoidance of doubt, Employee shall be entitled to payment or reimbursement of travel expenses incurred in connection with Employee’s duties and responsibilities under this Agreement (including, without limitation, travel between his California home and the Company’s offices) and the Company shall hold Employee harmless from any income tax liability he might incur resulting from the payment or reimbursement of such travel expenses.  To the extent that any such reimbursements are taxable to Employee, such reimbursements shall be paid to Employee only if (i) the expenses are incurred and reimbursable pursuant to a reimbursement plan that provides an objectively determinable nondiscretionary definition of the expenses that are eligible for reimbursement and (ii) the expenses are incurred during the Term of Employment and are submitted for reimbursement no later than ninety (90) days after the end of the calendar year in which the expense giving rise to the claim for reimbursement is incurred.  With respect to any expenses that are reimbursable pursuant to the preceding sentence, the amount of the expenses that are eligible for reimbursement during one calendar year may not affect the amount of reimbursements to be provided in any subsequent calendar year, the reimbursement of an eligible expense shall be made promptly upon the Company’s receipt of such information and supporting documentation as it may reasonably request but no later than the last day of the calendar year following the calendar year in which the expense was incurred, and the right to reimbursement of the expenses shall not be subject to liquidation or exchange for any other benefit.  To the extent Employee receives any tax gross-up payment relating to any such expenses, such payment shall be made on or before the last day of the calendar year following the calendar year in which Employee remits the related taxes.

 

2.                                       Termination.

 

(a)                                  The Term of Employment shall terminate prior to its expiration, and Employee’s employment shall terminate, in the event that at any time during the Term of Employment:

 

(i)                                    Isle terminates the Term of Employment and Employee’s employment for “Cause” by a written notice of termination delivered to Employee.  For purposes of this Agreement, “Cause” shall mean any (A) dishonesty, disloyalty or breach of corporate policies, in each case that is material to the ability of Employee to continue to effectively function in his capacity as Executive Chairman of the Board and an employee of Isle given the strict regulatory standards of the industry in which the Company does business; (B) gross misconduct on the part of Employee in the performance of Employee’s duties hereunder (as determined by the Board); (C) Employee’s violation of Section 4 of this Agreement; or (D) Employee’s failure to be licensed as a “key person” or similar role under the laws of any jurisdiction where the Company does business, or the loss of any such license for any reason.  If Employee’s employment is terminated for Cause (after the Board has given him ten (10) days’ 

 

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advance written notice in the case of an event or circumstances giving rise to Isle’s ability to terminate Employee’s employment for Cause that are capable of being cured during such ten (10) day cure period and if such event or circumstance is not cured to the satisfaction of the Board within such ten (10) day period), there shall be no severance paid to Employee and his benefits shall terminate as of his termination date, except as may be required by law.

 

(ii)                                 Isle terminates the Term of Employment and Employee’s employment for any reason without Cause (other than as a result of Employee’s death or Disability (as defined in Section 2(a)(iv)) (including through non-renewal of the Agreement).  In this case, if Employee signs a Mutual and General Release in reasonable and typical form that is acceptable to Isle (a “Release”) that releases the Company from any and all claims that Employee may have and affirmatively agrees not to violate any of the provisions of Section 4 hereof (which shall not be expanded beyond what is set forth in Section 4 as of the Effective Date), Employee shall be entitled to receive the severance payments and continued benefits described in this Section 2(a)(ii); provided, however, that Employee shall only be entitled to such severance payments or benefits if the Release has been executed, is effective and the applicable revocation period has expired (collectively, the “Release Requirements”) no later than the date as of which such severance payments or benefits are otherwise to be paid or provided and if the Release Requirements are not satisfied as of such date, Employee shall not be entitled to such severance payments or benefits.

 

Subject to the foregoing, if Isle terminates the Term of Employment and Employee’s employment without Cause, then Employee shall be entitled to (A) continue to receive his Annual Base Salary (and shall receive any earned but unpaid portion of his annual bonus) payable in twelve (12) substantially equal monthly installments beginning on the first day following the six (6)-month anniversary of Employee’s termination date; and (B) to the extent legally permissible, Medical Continuation Benefits (as defined below).  Notwithstanding the foregoing, the Board may authorize that portion of the Annual Base Salary and any of his earned but unpaid bonus that is not subject to section 409A of the Internal Revenue Code of 1986, as amended (the “Code”)(the “409A Exempt Payment”) to be paid in a single lump sum to Employee on any date following Employee’s termination date and prior to the six (6)-month anniversary of Employee’s termination date (provided that in no event shall Employee be permitted to elect the year of payment); and the remaining Annual Base Salary and bonus (that is, the Annual Base Salary and bonus minus the 409A Exempt Payment) to be paid to Employee in accordance with Section 2(a)(ii)(A).

 

For purposes of this Agreement, “Medical Continuation Benefits” means continuation coverage under the Company’s major medical, dental and 

 

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vision plans (collectively, the “Medical Plan”) for Employee and his spouse and dependents consistent with the level of coverage otherwise in effect as of his termination date for the period beginning on Employee’s termination date and ending on the earlier of (I) twelve (12) months after Employee’s termination date or (II) the date on which Employee, his spouse or dependents obtains comparable alternative group coverage during the twelve (12) months after Employee’s termination (such period being referred to as the “Continuation Period”), at Employee’s sole expense, and for each year (or portion thereof) during the Continuation Period, the Company shall pay to Employee an amount such that, after the payment of all income and employment taxes due with respect to such amount, there remains an amount  equal to the Company’s premium contribution paid with respect to its similarly-situated active employees for the level of coverage provided to Employee and his spouse and dependents under the Medical Plan during the portion of the Continuation Period within such year.  Any payments to be made to Employee pursuant to the preceding sentence shall be made no later than March 15 of the year following the year to which they relate.  The Medical Continuation Benefit shall not be deemed to offset or otherwise limit the period of continuation coverage otherwise available to Employee and his spouse or dependents under section 4980B of the Code which shall be deemed to commence following the end of the Continuation Period and shall be provided at Employee’s sole expense.

 

In the event of termination without Cause pursuant to this Section 2(a)(ii), all of Employee’s outstanding unvested equity-based awards that would have vested, and, if applicable, become exercisable had Employee remained employed under this Agreement for one (1) year following his termination date, shall vest and, if applicable, become exercisable as of his termination date.

 

As used in this Agreement, the term “earned but unpaid bonus” shall refer to the annual bonus, if any, to which Employee is entitled for any fiscal year completed prior to Employee’s termination of employment which has not been paid as of the date on which Employee’s employment terminates.

 

(iii)                              Employee for any reason voluntarily terminates the Term of Employment and his employment.  In that case, there shall be no severance paid to Employee and his benefits shall terminate as of his termination date, except as may be required by law.  Notwithstanding the foregoing, if Employee voluntarily terminates the Term of Employment and his employment due to Retirement (as defined below) all of his outstanding equity-based awards shall become fully vested and, if applicable, exercisable as of his termination date.  The term “Retirement” shall mean the termination by Employee of his employment after attaining age sixty-five (65) and completing at least three (3) years of service or such later date approved by the Board.

 

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(iv)                             Employee dies or Isle terminates the Term of Employment and Employee’s employment as a result of Employee’s Disability.  In the event Employee’s employment is terminated due to his death or Disability, Employee, or, in the event of his death, his estate shall receive (A) payment of his earned but unpaid bonus and continuing payment of his Annual Base Salary payable in twelve (12) substantially equal monthly installments beginning on the first day following the six (6) month anniversary of Employee’s termination date; (B) to the extent legally permissible, continuation coverage under the Medical Plan for the Continuation Period; and (C) a lump sum payment to be paid on the first payroll date following Employee’s termination date equal to the average of the last three (3) years annual bonus payments, if any, inclusive of deferred amounts.

 

Notwithstanding the foregoing, the Board may authorize that portion of the payment under Section 2(a)(iv)(A) that qualifies as a 409A Exempt Payment (as defined in Section 2(a)(ii)) to be paid in a single lump sum to Employee on any date following Employee’s termination date and prior to the six (6) month anniversary of his Termination Date (provided that in no event shall Employee be permitted to elect the year of payment) with the remaining amount to be paid to Employee in accordance with Section 2(a)(iv)(A).

 

For purposes of this Agreement, Employee shall be deemed to have a “Disability” if, by reason of a medically-determinable physical or mental impairment that can be expected to result in death or to last for a continuous period of at least twelve (12) months, (I) he is unable to engage in any substantial gainful employment, or (II) has been receiving benefits under the Company’s separate long-term disability plan for a period of at least three (3) months.. The Company shall certify whether Employee have a Disability as defined herein.

 

(v)                                Employee ceases for any reason to be the Executive Chairman of the Board.  If Employee’s employment is terminated because he ceases, for any reason, to be the Executive Chairman of the Board, he shall be entitled to payments and benefits under the foregoing provisions of this Section 2 based on the reason that he ceases to be the Executive Chairman of the Board; provided, however, that if Employee ceases to be Executive Chairman of the Board because he is not re-elected or is not proposed for re-election to the Board, or is not designated by the then incumbent Board as the Executive Chairman of the Board, Employee’s termination shall be deemed to be a termination by Isle without Cause.

 

(b)                                 Except as provided hereunder, the vesting of equity-based awards shall be governed by the provisions of the Isle of Capri Casinos, Inc. 2009 Long-Term Stock Incentive Plan as the same may be amended, restated or otherwise replaced from time to time (the “Equity Plan”).

 

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3.                                       Change In Control of Isle.  If (i) there is a sale, acquisition, merger, or buyout of Isle to an unaffiliated person, or any person that is not an “affiliate” (as such term is defined under the Securities Exchange Act of 1934) of Isle or any of its shareholders on the Effective Date becomes the legal and beneficial owner of more than 50% of Isle’s common stock (a “Change in Control”), and (ii) Employee has a Qualifying Termination (as defined below), then in lieu of the severance payments and benefits, if any, otherwise payable to Employee under Section 2 of the Agreement, Employee will be entitled to the following severance payments and benefits:

 

(a)                                  (i)  Two (2) times his Annual Base Salary payable in twenty-four (24) substantially equal monthly installments beginning on the first day following the six (6)-month anniversary of Employee’s termination date; (ii) payment of his earned but unpaid bonus, if any, payable at the same time as annual bonuses are paid to similarly-situated employees of Isle; and (iii) an amount equal to the average of the previous three (3) years’ annual bonus payment, if any, inclusive of deferred amounts, if any, payable in a lump sum, which lump sum shall be paid to Employee on the first day following the six (6)-month anniversary of Employee’s termination date.  Notwithstanding the foregoing, the Board may authorize that portion of the foregoing payments under this Section 3(a) that qualify as a 409A Exempt Payment (as defined in Section 2(a)(ii)) to be paid in a single lump sum to Employee on any date following Employee’s termination date and prior to the six (6)-month anniversary of Employee’s termination date (provided that in no event shall Employee be permitted to elect the year of payment) and the remaining amounts to be paid in accordance with this Section 3(a).

 

(b)                                 The Medical Continuation Benefits; provided, however, that for purposes of this Section 3(b), the “Continuation Period” shall be based on twenty four (24) months rather than twelve (12) months.

 

(c)                                  Upon the occurrence of a change in control (as defined in the Equity Plan), all of Employee’s outstanding equity-based awards shall governed by the provisions of the Equity Plan.

 

For purposes of this Agreement, a “Qualifying Termination” means a termination of Employee’s employment with the Company by the Company without Cause or a termination by Employee for Good Reason (as defined below), in either case within thirty (30) days prior to the occurrence of a Change in Control or upon or within twelve (12) months after a Change in Control.  For purposes of this Agreement, Employee’s termination shall be considered to be for “Good Reason” if Employee terminates his employment with the Company within the time period described above following (I) a significant reduction in Employee’s authority, responsibilities, position or compensation or (II) a material relocation of the principal place at which Employee performs services hereunder, but in no event less than thirty-five (35) miles from the principal place at which Employee performs such services immediately prior to the Change in Control, in either case which the Company has failed to remedy within thirty (30) days after receipt of Employee’s written notice thereof.

 

As a condition to receiving the payments described in Sections 3(a) and (b) above, the Release Requirements must be satisfied no later than the date as of which such severance payments or benefits are otherwise to be made or provided and if the Release Requirements are not satisfied as of such date, Employee shall not be entitled to such severance payments or benefits.

 

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Notwithstanding the foregoing provisions of this Section 3, if (1) during the period beginning on the first anniversary of Employee’s termination date and ending on the second anniversary thereof (the “Second Year Period”), Employee is or becomes employed by a new employer, and (2) such new employment would be prohibited by the provisions of Section 4(c) if the post-termination restrictions of Section 4(c) applied during the Second Year Period (which they do not), then, Employee shall forfeit all future payments and benefits under this Section 3 and all future payments and benefits shall thereupon cease.  Nothing in this paragraph is intended to relieve Employee of the restrictions of Section 4(c) for the first year following his termination date or to result in a forfeiture of payments and benefits during the Second Year Period if Employee is or becomes employed by a new Employer if such new employment would not be prohibited by the provisions of Section 4(c) if the post-termination restrictions of Section 4(c) applied during the Second Year Period.

 

4.                                       Confidentiality, Non-Competition and Non-Solicitation.

 

(a)                                  The Company’s Business.  It is expressly agreed by the parties that, as of the Effective Date, the Company is engaged in the business of owning, managing and operating gaming and casino facilities in the states of Missouri, Mississippi, Iowa, Louisiana, Colorado and Florida, as of the Agreement Date has pending licenses in Nevada and Pennsylvania, and is in the business of seeking new gaming properties in additional jurisdictions and is engaged in all aspects of such gaming and casino operations.  Employee desires to continue to be employed by the Company from and after the Effective Date and acknowledges and agrees that the Company would be adversely affected if Employee competes with the Company during, and subsequent to, Employee’s employment with the Company.

 

(b)                                 Trade Secrets and Confidential Information.  The Company and Employee acknowledge the existence of trade secrets and other confidential information as defined below (collectively referred to as “Confidential Information”), all of which are owned by the Company, regardless of whether such Confidential Information was conceived, originated, devised or supplemented by Employee, the Company, or any other person or entity.  Employee acknowledges that he has had and will continue to have access to Confidential Information during his employment with the Company.

 

Except as required by law, during the term of this Agreement and thereafter, Employee shall not, without the prior written consent of the Company, directly or indirectly disclose or disseminate to any other person, firm or organization, any Confidential Information other than on behalf of the Company.  The foregoing obligation shall not apply to any Confidential Information that shall have become known to competitors of the Company or to the public other than through an act or omission by Employee or that shall have been disclosed to Employee by a person or entity unaffiliated with the Company who has legitimate possession thereof in its entirety and possesses the unrestricted right to make such disclosure.  Employee agrees to indemnify, defend and hold harmless the Company from and against any damages (including attorneys’ fees, court costs, investigative costs and amounts paid in settlement) suffered by the Company or any of its affiliates arising out of the unauthorized disclosure or use of Confidential Information by Employee.

 

“Confidential Information” shall mean any data or information and documentation, whether in tangible form, electronic form or verbally disclosed, that is of material value to the Company and not known to the public or the Company’s competitors, and which the Company 

 

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has kept confidential.  To the fullest extent consistent with the foregoing and as otherwise lawful, Confidential Information shall include, without limitation, the Company’s trade secrets, computer programs, sales techniques and reports, formulas, data processes, methods, articles of manufacture, machines, apparatus, designs, compositions of matter, products, improvements, inventions, discoveries, developmental or experimental work, corporate strategy, marketing techniques, pricing lists and data and other pricing information, business plans, ideas and opportunities, accounting and financial information including financial statements and projections, personnel records, specialized customer information, proprietary agreements with vendors, special products and services the Company may offer or provide to its customers/guests from time to time, pending acquisitions, negotiations and transactions, or the terms of existing proposed business arrangements.  Confidential Information shall also include all customer lists, accounts and specifications, and contacts of the Company, and shall further include work in progress, plans or any other matter belonging to or relating to the technical or business activities of the Company.

 

Employee, at the time of the effective date of the termination of the employment relationship with the Company, shall turn over to the Company all “Confidential Information” and any and all copies thereof in his possession regardless of who provided Employee with such information.  Should Employee be legally served with a lawfully issued subpoena expressly directing Employee to turn over the Company’s Confidential Information, Employee shall immediately, and certainly no later than five (5) days after notice, advise the Company in writing of the subpoena and also provide a copy of the subpoena to the Company, at its lawful address as stated in this Agreement, thereby providing the Company with adequate time to lawfully object to the disclosure of its Confidential Information.  Employee’s failure to immediately advise the Company of the subpoena shall subject Employee to any and all remedies afforded to the Company, including, but not limited to, damages resulting to the Company for breach of contract.

 

Employee agrees that all such Confidential Information is, and shall remain, the sole and exclusive property of the Company and Employee further agrees that during and after the term of his employment with the Company, Employee will not publish, disclose, communicate or otherwise disseminate to any entity and/or person any Confidential Information.  Employee acknowledges and agrees that such Confidential Information is of critical importance to the Company and its business, and any unauthorized dissemination of such information would cause great harm to the Company, thereby entitling the Company to any and all rights and remedies as provided by law, and as specifically provided in Section 5 of this Agreement.

 

Employee hereby assigns and agrees to assign to the Company any invention, improvement, or discovery made by him, alone or jointly with others, during the term of his employment, including any period of authorized leave of absence, or as a result of his employment, and which in any way relates to, or may be useful in, the business of the Company, together with each patent that may be obtained thereon in any country.  Employee will promptly and fully disclose to the Company any such invention, improvement or discovery and, without further consideration, will upon request by the Company execute all proper papers for use in applying for, obtaining and maintaining any United States or foreign patent and all proper assignments thereof, at the Company’s expense and through its Patent Counsel.  Each such invention, improvement or discovery, whether or not patented, shall be the exclusive property of the Company.

 

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(c)                                  Restrictions on Competition.  In exchange for consideration of employment, and in consideration for Employee receiving and being given access to confidential business information, including, but not limited to trade secrets, customer and supplier contacts and relationships, goodwill, loyalty and other information, and as a condition of employment of Employee by the Company, during the term of Employee’s employment with the Company, and for a period of one (1) year after the voluntary or involuntary termination of Employee’s employment with the Company for any reason whatsoever, Employee will refrain from carrying on or engaging in the casino or gaming business (as defined in Section 4(a)), or, without the written consent of the Company (which shall not be unreasonably withheld), the hotel or restaurant business, or any other business in which the Company may be engaged on Employee’s termination date, in any case either directly or indirectly, either individually or jointly or on behalf of or in concert with any other person, as a proprietor, partner, shareholder, investor (other than in less than 5% of any class of securities of any publicly traded company), lender, financial backer, director, officer, employee, agent, advisor, consultant or manager, or in any other capacity or manner whatsoever.  The provisions of this Section 4(c) apply to any gaming operation or gaming facility within a 75-mile radius of (A) any gaming operation or gaming facility owned (in whole or in part) by the Company or with respect to which the Company renders or proposes to render consulting or management services, in each case on the Effective Date or, for periods after Employee’s termination date, on such termination date, or (B) any of the foregoing as to which the Company has taken any substantive step toward owning (in whole or in part) or managing such facility in the future.

 

(d)                                 Non-Solicitation of Employees.  In exchange for and in consideration of continuing employment, and in consideration for Employee receiving and being given access to confidential business information, including, but not limited to trade secrets, customer and supplier contacts and relationships, goodwill, loyalty and other information, and as a condition of continuing employment of Employee by the Company, during the term of Employee’s employment with the Company and for one (1) year after Employee’s termination date for any reason, Employee shall not, without the prior written consent of the Company, either directly or indirectly, either individually or jointly or on behalf of or in concert with any other person, as a proprietor, partner, shareholder, investor (other than in less than 5% of any class of securities of any publicly traded company), lender, financial backer, director, officer, employee, agent, advisor, consultant or manager, or in any other capacity or manner whatsoever, solicit for hire, enter into any contract or other arrangement with, or interfere with, disrupt or attempt to interfere with or disrupt the Company’s relationships with, any person, who is employed by the Company; provided that for periods after Employee’s termination date, the foregoing shall apply only to a person who, as of Employee’s termination date, is employed by the Company.

 

(e)                                  Reasonable Terms.  Employee agrees that the geographic areas, duration and scope of activities outlined in this Agreement are reasonable under the circumstances.  Employee further agrees that such terms are no broader than necessary to protect the Company’s business and maintain the confidentiality of the Confidential Information.  Employee further agrees that the terms of this Agreement are not oppressive and will not impose an unreasonable burden or restraint on Employee.

 

5.                                       Miscellaneous.

 

(a)                                  Successors and Assigns.  This Agreement is binding on and inures to the benefit of the Company’s successors and assigns.  Isle may assign this Agreement in connection 

 

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with a merger, consolidation, assignment, sale or other disposition of substantially all of its assets or business (subject to the provisions of Section 4).  This Agreement may not be assigned by Employee.

 

(b)                                 Modification, Waivers.  This Agreement may be modified or amended only by a writing signed by an authorized representative of Isle and Employee.  The Company’s failure, or delay in exercising any right, or partial exercise of any right, will not waive any provision of this Agreement or preclude the Company from otherwise or further exercising any rights or remedies hereunder, or any other rights or remedies granted by any law or any related document.

 

(c)                                  Governing Law, Arbitration.  The laws of Missouri will govern the validity, construction, and performance of this Agreement without regard to the location of execution or performance of this Agreement.  Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be settled by binding arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.  Both Isle and Employee hereby consent to this binding arbitration provision.

 

(d)                                 Remedies.  Employee expressly acknowledges and the parties recognize that the restrictions contained herein are reasonable and necessary to protect the business and interests of the Company, and that any violation of these restrictions will cause substantial irreparable injury and damage to the Company, and the extent of such damage would be difficult if not impossible to calculate.  Accordingly, the parties to this Agreement expressly agree that (i) if Employee breaches any provision of this Agreement, the damage to the Company may be substantial, although difficult to ascertain, and monetary damages may not afford an adequate remedy, and (ii) if Employee is in breach of any provision of this Agreement, or threatens a breach of this Agreement, the Company shall be entitled, in addition to all other rights and remedies as may be provided by law, to seek specific performance and injunctive and other equitable relief, including, but not limited to, restraining orders and preliminary and permanent injunctions, to enforce the provisions of this Agreement, particularly those provisions governing noncompetition, nonsolicitation and confidentiality, contained in this Agreement, as well as to prevent or restrain a breach of any provisions of this Agreement.  The parties expressly agree that the Company has these specific and express rights to injunctive relief without posting any bond that might be requested or required, and without the necessity of proving irreparable injury, and that Employee expressly agrees not to claim in any such equitable proceedings that a remedy at law is available to the Company.  The existence of any claim or cause of action by Employee, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company or any of its affiliates of any provision hereof.  The parties to this Agreement also expressly agree that the Company is entitled to recover any and all damages for any losses sustained, and rights of which it has been deprived, as well as any damages allowed by law.

 

(e)                                  If any proceeding is brought for the enforcement of this Agreement, or because of an alleged dispute, breach or default in connection with any of the provisions of this Agreement, the successful or prevailing party or parties shall be entitled to recover reasonable attorney’s fees and other costs incurred in that proceeding, in addition to any other relief to which it may be entitled.  All of the Company’s remedies for breach of this Agreement shall be cumulative and the pursuit of one remedy shall not be deemed to exclude any other remedies.

 

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(f)                                    Captions.  The headings in this Agreement are for convenience only and do not affect the interpretation of this Agreement.

 

(g)                                 Severability.  To the extent any provision of this Agreement shall be invalid or enforceable with respect to Employee, it shall be considered deleted herefrom with respect to Employee and the remainder of such provision and this Agreement shall be unaffected and shall continue in full force and effect.  In furtherance to and not in limitation of the foregoing, should the duration or geographical extent of, or business activities covered by, any provision of this Agreement be in excess of that which is valid and enforceable under applicable law with respect to Employee, then such provision shall be construed to cover only that duration, extent or activities which are validly and enforceably covered with respect to Employee.  Employee acknowledges the uncertainty of the law in this respect and expressly stipulates that this Agreement be given the construction which renders its provisions valid and enforceable to the maximum extent (not exceeding its expressed terms) possible under applicable laws.

 

(h)                                 Entire Agreement.  This Agreement contains the entire agreement and understanding by and between the Company and Employee, and, as of the Effective Date, supersedes all previous and contemporaneous oral negotiations, commitments, writings and understandings between the parties concerning the matters herein or therein, including without limitation, the Prior Agreement and any policy or personnel manuals of the Company to the extent any provisions herein are inconsistent therewith.  No change to this Agreement shall be valid or binding unless it is in writing and signed by the parties.

 

(i)                                     Indemnification.  Isle shall indemnify Employee and hold Employee harmless to the full extent permitted by Section 145 of the Delaware General Corporation Law from and against any and all claims, liabilities and losses he may suffer arising in connection with his employment as an officer of the Company as set forth herein, subject to the exceptions set forth in the Delaware General Corporation Law.  The agreement of the Company set forth in this Section 5(i) shall survive the termination of this Agreement.

 

(a)                                  Notices.  All notices and all other communications provided for in this Agreement shall be in writing and shall be delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid, or sent by facsimile or prepaid overnight courier to the parties at the addresses set forth below (or such other addresses as shall be specified by the parties by like notice).  Such notices and other communications shall be deemed given:

 

(i)                                    in the case of delivery by overnight service with guaranteed next day delivery, the next day or the day designated for delivery;

 

(ii)                                 in the case of certified or registered U.S. mail, five days after deposit in the U.S. mail; or

 

(iii)                              in the case of facsimile, the date upon which the transmitting party received confirmation of receipt by facsimile, telephone or otherwise;

 

provided, however, that in no event shall any such communications be deemed to be given later than the date they are actually received.  Communications that are to be delivered by the U.S. mail or by overnight service are to be delivered to the addresses set forth below:

 

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(j)

 

If to the Company, to:

 

Isle of Capri Casinos, Inc.
 600 Emerson Road
 Suite 300
 St. Louis, MO 63141

 

Attention: General Counsel

 

With a copy to:

 

Paul W. Theiss
 Mayer Brown LLP
 71 S. Wacker Drive
 Chicago, IL 60606

 

If to Employee, to:

 

James B. Perry
 At the most recent address on the Company’s records

 

With a copy to:

 

John M. Donnelly
 Levine, Staller, Sklar, Chan, Brown & Donnelly, P.A.
 3030 Atlantic Avenue
 Atlantic City, NJ 08401

 

(k)                                  Independent Review and Advice.  Employee represents and warrants that Employee has carefully read this Agreement; that Employee executes this Agreement with full knowledge of the contents of this Agreement, the legal consequences thereof, and any and all rights which each party may have with respect to each other; that Employee has had the opportunity to receive independent legal advice with respect to the matters set forth in this Agreement and with respect to the rights and asserted rights arising out of such matters, and that Employee is entering into this Agreement of Employee’s own free will.  Employee expressly agrees that there are no expectations contrary to the Agreement and no usage of trade or regular practice in the industry shall be used to modify the Agreement.

 

(l)                                     Special 409A Provisions. Notwithstanding any other provision of this Agreement to the contrary, if any payment hereunder is subject to section 409A of the Code and if such payment is to be paid on account of Employee’s separation from service (within the meaning of section 409A of the Code), if Employee is a specified employee (within the meaning of section 409A(a)(2)(B) of the Code), and if any such payment is required to be made prior to the first day of the seventh month following Employee’s separation from service, such payment shall be delayed until the first day of the seventh month following Employee’s separation from service.  To the extent that any payments or benefits under this Agreement are subject to section 409A of the Code and are paid or provided on account of Employee’s termination of 

 

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employment or the Term of Employment, the determination as to whether Employee has had a termination of employment (or separation from service) shall be made in accordance with section 409A of the Code and the guidance issued thereunder without application of any alternative levels of reductions of bona fide services permitted thereunder.  Any delayed payment shall be made without liability for interest or other loss of investment opportunity.

 

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IN WITNESS HEREOF, each party has caused this Agreement to be executed in a manner appropriate for such party as of the date first above written.

 

	
 
    	
ISLE   OF CAPRI CASINOS, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Edmund L. Quatmann, Jr.
    
	
 
    	
Name:   Edmund L. Quatmann, Jr.
    
	
 
    	
Title:   SVP and General Counsel
    
	
 
    	
 
    
	
 
    	
EMPLOYEE
    
	
 
    	
 
    
	
 
    	
/s/   James B. Perry
    
	
 
    	
JAMES   B. PERRY
    

 

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