Document:

Exhibit
10.2

SECOND
AMENDMENT TO CREDIT AGREEMENT

THIS
SECOND AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into as of May 7,
2007, among UNIVERSAL AMERICAN FINANCIAL
CORP., a New York corporation (the “Borrower”),
the Banks party to the Credit Agreement (hereinafter defined) and BANK OF AMERICA, N.A., as the Administrative Agent for the
Banks.

The
Borrower, the Banks and the Administrative Agent are party to the Amended and
Restated Credit Agreement dated as of January 18, 2007, as amended by the First
Amendment to Credit Agreement dated as of March 22, 2007  (the “Credit Agreement”), and have agreed, upon
the following terms and conditions, to amend the Credit Agreement in certain
respects.  Accordingly, for valuable and
acknowledged consideration, the Borrower, the Banks and the Administrative
Agent agree as follows:

1.             Terms and
References.  Unless
otherwise stated in this Amendment, (a) terms defined in the Credit Agreement
have the same meanings when used in this Amendment and (b) references to “Sections” are to the Credit
Agreement’s sections.

2.             Amendment.   Section 7.15(a)(ii)(x) is amended to read in
its entirety as follows:

“(x) no part of such
preferred stock is mandatorily redeemable (whether on a scheduled basis or as a
result of the occurrence of any event or circumstance) prior to June 1, 2029
and”

3.             Conditions
Precedent to Effectiveness of Amendment.  This Amendment shall not be effective until
the Administrative Agent receives: (a) counterparts of this Amendment executed
by the Borrower, the Subsidiary Guarantors, the Required Banks and the
Administrative Agent; (b) payment
of all expenses, including legal fees and expenses of counsel to the
Administrative Agent, incurred by the Administrative Agent in connection with
this Amendment, to the extent invoiced to the Borrower on or prior to the date
hereof; and (c) such other agreements, documents, instruments and items as the
Administrative Agent may reasonably request, including, without limitation,
documents evidencing the due authorization of the execution, delivery and
performance by the Borrower and each of the Subsidiary Guarantors of this
Amendment, the incumbency of the officer of the Borrower and each of the
Subsidiary Guarantors executing this Amendment, and any other matters relevant
thereto.

4.             Representations.  The Borrower represents and warrants to the Administrative Agent
and the Banks as follows:  (a) the
execution, delivery and performance by the Borrower of this Amendment and the
Credit Agreement, as amended hereby, have been duly authorized by all necessary
corporate action; (b) all representations and warranties made or deemed made by
the Borrower in the Credit Documents are true and correct as of the date
hereof, except to the extent that such representations and warranties expressly
relate solely to an earlier date (in which case such representations and
warranties were true and accurate on and as of such earlier date) and except
for changes in factual circumstances not prohibited by the Credit Agreement;
and (c) no Default or Event of Default has occurred and is continuing as of the
date hereof.

5.             Effect of Amendment.  This Amendment is a Credit Document.  Except as expressly modified and amended by
this Amendment, all of the terms, provisions and conditions of the Credit
Documents shall remain unchanged and in full force and effect.  If any part of this Amendment is for any
reason found to be unenforceable, all other portions of it shall nevertheless
remain enforceable.  The Credit Documents
and any and all other documents heretofore, now or hereafter executed and
delivered pursuant to the terms of the Credit Agreement are hereby amended so
that any reference to the Credit Agreement shall mean a reference to the Credit
Agreement as amended hereby.

 

6.             Expenses.  The Borrower shall pay all reasonable fees
and expenses paid or incurred by the Administrative Agent incident to this
Amendment, including, without limitation, the reasonable fees and expenses of
the Administrative Agent’s counsel in connection with the negotiation,
preparation, delivery and execution of this Amendment and any related
documents.

7.             Governing Law.  This Amendment shall be governed by and
construed in accordance with and be governed by the laws of the State of New
York, without regard to conflict of laws principles.

8.             Counterparts.  This Amendment may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed to be an original and all
of which taken together shall constitute one and the same instrument.

9.             ENTIRETY. 
THIS AMENDMENT, THE CREDIT AGREEMENT, AND THE OTHER CREDIT DOCUMENTS
EMBODY THE ENTIRE AGREEMENT BETWEEN THE PARTIES AND SUPERCEDE ALL PRIOR
AGREEMENTS AND UNDERSTANDINGS, IF ANY, RELATING TO THE SUBJECT MATTER
HEREOF.  THESE CREDIT DOCUMENTS REPRESENT
THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE
OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

10.           Parties.  This Amendment binds and inures to the
benefit of the Borrower, the Subsidiary Guarantors, the Administrative Agent,
the Banks and their respective permitted successors and assigns.

[REMAINDER OF PAGE INTENTIONALLY
BLANK.

SIGNATURE PAGES FOLLOW.]

 

 

Signature
Page to that certain Second Amendment to Credit Agreement dated as of the date
first set forth above, among Universal American Financial Corp., as the
Borrower, Bank of America, N.A., as the Administrative Agent, and certain Banks
party thereto.

 

	
  UNIVERSAL AMERICAN FINANCIAL

  CORP., as the Borrower

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Robert A.
  Waegelein

  	
   

  
	
   

  	
  Name:

  	
  Robert A.
  Waegelein

  	
   

  
	
   

  	
  Title:

  	
  Executive Vice
  President and Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  BANK
  OF AMERICA, N.A., as a Bank
  and as 

  the Administrative Agent

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Joseph L.
  Corah

  	
   

  
	
   

  	
  Name:

  	
  Joseph L. Corah

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice
  President

  	
   

  

 

To induce the
Administrative Agent and the Banks to enter into this Amendment, the
undersigned consent and agree (a) to its execution and delivery and terms and
conditions thereof, (b) that this document in no way releases, diminishes,
impairs, reduces, or otherwise adversely affects any Liens, Subsidiary
Guaranties, assurances, or other obligations or undertakings of any of the
undersigned under any Credit Documents, and (c) that this Amendment binds each
of the undersigned and its successors and permitted assigns and inures to the
benefit of the Administrative Agent, the Banks, and their respective successors
and permitted assigns.

 

	
  

  WORLDNET SERVICES CORP., as a 

  Guarantor

  	
   

  	
  HERITAGE HEALTH SYSTEMS OF TEXAS, 

  INC., as a Guarantor

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Robert A. Waegelein

  	
   

  	
  By:

  	
  /s/ Theodore M. Carpenter, Jr.

  
	
   

  	
  Name:

  	
  Robert A. Waegelein

  	
   

  	
   

  	
  Name:

  	
  Theodore M. Carpenter, Jr.

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  UNIVERSAL
  AMERICAN FINANCIAL

  SERVICES, INC.,
  as a Guarantor

  	
   

  	
  HHS TEXAS MANAGEMENT, INC., as
  a 

  Guarantor

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Robert A. Waegelein

  	
   

  	
  By:

  	
  /s/ Theodore M. Carpenter, Jr.

  
	
   

  	
  Name:

  	
  Robert A. Waegelein

  	
   

  	
   

  	
  Name:

  	
  Theodore M. Carpenter, Jr.

  
	
   

  	
  Title:

  	
  President

  	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  QUINCY COVERAGE CORPORATION, as
  a 

  Guarantor

  	
   

  	
  CHCS SERVICES INC., as a
  Guarantor

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Robert A. Waegelein

  	
   

  	
  By:

  	
  /s/ Robert A. Waegelein

  
	
   

  	
  Name:

  	
  Robert A. Waegelein

  	
   

  	
   

  	
  Name:

  	
  Robert A. Waegelein

  
	
   

  	
  Title:

  	
  President

  	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HERITAGE HEALTH SYSTEMS, INC., as
  a 

  Guarantor

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Theodore M. Carpenter, Jr.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Theodore M. Carpenter, Jr.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  PSO MANAGEMENT OF TEXAS, LLC, as a
  Guarantor

  	
   

  	
  HHS TEXAS MANAGEMENT, L.P.,
  as a 

  Guarantor

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Theodore M. Carpenter, Jr.

  	
   

  	
  By:

  	
  HHS Texas Management, Inc.,
  its 

  general partner

  
	
   

  	
  Name:

  	
  Theodore M. Carpenter, Jr.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  	
   

  	
  By:  

  	
  /s/ Theodore M. Carpenter, Jr.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Theodore M.
  Carpenter, Jr.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  PresidentEXHIBIT
10.1

EXECUTIVE
EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT
AGREEMENT (this “Agreement”) is made and entered into as of this 14th
day of May 2007 (the “Effective Date”), by BLACK GAMING, LLC, a Nevada
limited liability company, (the “Company”), and JASON GOUDIE (the “Executive”).

RECITALS

WHEREAS, the Company desires to employ the Executive
on the terms and conditions set forth herein; and

WHEREAS, the Executive desires to accept employment
with the Company on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the promises and
mutual covenants contained herein and for other good and valuable
consideration, the Company and the Executive (each a “Party” and
collectively the “Parties”) agree that the foregoing recitals are true
and as follows:

AGREEMENT

1.             DEFINITIONS:
In addition to certain terms defined elsewhere in this Agreement, the following
terms shall have the following respective meanings:

1.1           “Affiliate”
shall mean any Person who controls, is controlled by, or is under common
control with the Company.

1.2           “Annual
Bonus” shall mean the bonus payable to Executive on an annual basis.

1.3           “Annual
Review” shall have the meaning as provided in Section 3.1.

1.4           “Base
Salary” shall have the meaning as provided in Section 3.1.

1.5           “Buyout
Payment” shall have the meaning as provided in Section 7.

1.6           “Cause”
shall mean that the Executive:

(a)                                  has
been charged with or convicted of any felony, or charged with or convicted of
any misdemeanor involving fraud, theft, 

 1
 

embezzlement,
dishonesty or moral turpitude during the Term;

(b)                                 has
been found unsuitable to hold a gaming license by a Gaming Authority;

(c)                                  has
failed to abide by the Company’s policies and procedures that are reasonably
and consistently enforced;

(d)                                 has
engaged in misconduct, failed to follow a reasonable directive, including any
reasonable directive given by the Company, or engaged in material inattention
to the Company’s business;

(e)                                  has
failed to perform the duties required of the Executive up to the standards
established by the Company;

(f)                                    has
materially breached this Agreement;

(g)                                 has
engaged in acts or omissions that constitute gross negligence or willful
misconduct resulting, in either case, in material economic harm to the Company;
or

(h)           has engaged in
excessive absenteeism.

1.7           “Change in Control”
shall be deemed to have occurred if (a) there is a sale or exchange of
outstanding stock of any class, as applicable, or membership interest in the
Company to a third party, the result of which leaves the Existing Majority
Equity Holder with less than 50% of the beneficial ownership in the surviving
entity(ies); (b) there is a sale of all or substantially all of the assets of
the Company; or (c) Robert R. Black, Sr. is no longer the Chief Executive
Officer or equivalent of the Company as a going gaming concern.  For purposes of this Section 1.7, “beneficial
ownership” shall have the same meaning as defined in Rules 13d-13d-5 under the
Securities Exchange Act of 1934, as amended, except that a Person shall be
deemed to have “beneficial ownership” of all shares or membership interest that
any such Person has the right to acquire, whether such right is immediately
exercisable or only after the passage of time.

 2
 

1.8           “Company Property”
shall mean all items and materials that are created, compiled, existing, or
received by the Company during the course of the Executive’s employment with
the Company, all items and materials provided by the Company to the Executive,
or to which the Executive has access, in the course of his employment,
including, without limitation, all files, records, documents, drawings,
specifications, memoranda, notes, reports, manuals, equipment, computer disks,
videotapes, drawings, blueprints, other similar items relating to or emanating
from the Company, its Affiliates or their respective customers, whether
prepared by the Executive or others, and any and all copies, abstracts and
summaries thereof.

1.9           “Competing Business”
shall mean any Person engaged in the gaming industry that directly or through
an affiliate conducts or has, before or during the Term, publicly announced
plans to conduct its gaming business within the Restricted Area.

1.10         “Confidential
Information” shall mean all nonpublic and/or proprietary information
respecting the business of the Company or any Affiliate, including, without
limitation, its patrons, customer lists, products, programs, projects,
promotions, marketing plans and strategies, business plans or practices,
business operations, employees, invitees, research and development products or
information, intellectual property, software, databases, trademarks, pricing
information and accounting and financing data. Confidential Information also
shall include information concerning the Company’s or any Affiliate’s
customers, such as their identity, address, preferences, playing patterns and
ratings or any other information kept by the Company or any Affiliate
concerning its customers regardless of whether such information has been
reduced to documentary or tangible form. Confidential Information does not
include information that is, or becomes, available to the general public unless
such availability occurs through an unauthorized act on the part of the
Executive.

1.11         “Disability” shall
mean a physical or mental incapacity that occurs during the Term that prevents
the Executive from performing, with reasonable accommodation, the essential
functions of his position with the Company for a minimum period of ninety (90)
days.  In the Event of Disability, the
Executive hereby agrees to submit to medical examinations by a licensed
healthcare professional selected by the Company, in its sole discretion, to
determine whether a Disability exists. In addition, the Executive may submit to
the Company documentation of a Disability, or lack thereof, from a licensed
healthcare professional of his choice. Following a determination of a
Disability or lack of Disability by the Company’s or the Executive’s licensed
healthcare professional, the other Party may submit subsequent documentation
relating to the existence of a Disability from a licensed healthcare
professional selected by such other Party. 

 3
 

In the event that
the medical opinions of such licensed healthcare professionals conflict, such
licensed healthcare professionals shall appoint a third licensed healthcare
professional to examine the Executive, and the opinion of such third licensed
healthcare professional shall be dispositive.

1.12         “Existing Majority
Equity Holder” shall mean Robert R. Black, Sr.

1.13         “Gaming Authorities”
shall mean the federal, state and local governmental, regulatory and
administrative authorities, agencies, boards and officials responsible for or
involved in the regulation of gaming or gaming activities in any jurisdiction
and, within the State of Nevada, specifically, the Nevada Gaming Commission and
the Nevada State Gaming Control Board.

1.14         “Good Reason”
shall mean and exist if, without the Executive’s prior written consent, one or
more of the following events occurs:

(a)                                  the
Executive is required to relocate from, or maintain his principal office
outside of, Clark County, Nevada;

(b)                                 the
Executive is given or is assigned significant duties or responsibilities that
are inconsistent, in any material respect, with the position of Chief Financial
Officer;

(c)                                  the
Company fails to agree to or to actually indemnify the Executive for his
actions and/or inactions, as either a director or an officer of the Company, in
accordance with Nevada law and specifically NRS Chapter 78 and NRS Chapter 86,
as applicable, and/or the Company fails to maintain commercially reasonable
levels of directors’ and officers’ liability insurance coverage for the
Executive when such insurance is available.

1.15         “Long
Term Incentive Plan” or “LTIP” shall mean the long term incentive
plan as that plan was adopted effective October 1, 2006 and amended from time
to time.

1.16         “Membership
Interest” shall mean the membership interest held by any member of the
Company.

 4
 

1.17         “NRS”  shall
mean the Nevada Revised Statutes, as amended.

1.18         “Person”
shall mean a natural person, any form of business and any other
non-governmental legal entity including, but not limited to, a corporation,
partnership, trust, or limited liability company.

1.19         “Restricted Area”
shall mean the area within a 25 mile radius of any casino operated by the
Company or any of its affiliates or within a 25 mile radius of any site for
which the Company or any of its affiliates has applied for a gaming license
during the Restriction Period.

1.20         “Restriction Period”
shall mean the period expiring at 11:59 p.m. on that date immediately preceding
the two (2) year anniversary of the effective date of (a) the termination of
this Agreement by the Company with or without Cause; (b) the termination of
this Agreement by the Executive with or without Good Reason; or (c) a Buyout
Payment.

1.21         “Term” shall have
the meaning as provided in Section 2.2.

1.22         “Voting Stock”  shall mean capital stock of any class or
classes having general voting power under ordinary circumstances, in the
absence of contingencies, to elect the directors of a corporation.

2.             TERM; POSITION AND
RESPONSIBILITIES.

2.1           
Employment Accepted.  The Company
hereby employs the Executive, and the Executive hereby accepts employment with
the Company, for the Term, in the position and with the responsibilities set
forth in Section 2.3 and upon such other terms and conditions as are stated in
this Agreement.

2.2           Term.  This Agreement shall be for a term of five
(5) years commencing on the Effective Date and expiring at 11:59 p.m. on that
date immediately preceding the five (5) year anniversary of the Effective Date,
unless earlier terminated as provided herein (the “Term”).

2.3           Responsibilities.  During the Term, the Executive shall be
employed as the Chief Financial Officer of the Company and shall have such
responsibilities as are commensurate with the title of Chief Financial
Officer.  During the Term, the Executive
shall devote his full time and attention to the business and affairs of the
Company and shall use commercially reasonable efforts, skills and abilities to
promote the Company’s interests. Anything set forth herein to the contrary
notwithstanding, the Executive shall not be precluded from engaging in
charitable and community affairs and managing his personal investments.

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3.             COMPENSATION.

3.1           Base
Salary. 
During the Term, the Executive shall be entitled to a base
salary (the “Base Salary”) payable no less frequently than in equal
bi-weekly installments (each, an “Installment”) at an annualized rate of
TWO HUNDRED THOUSAND DOLLARS ($200,000.00). 
During the Term, the Base Salary shall be reviewed annually for increase
(but not decrease) by the Company, and any such increase shall be at the sole
discretion of the Company. In conducting such annual review (the “Annual
Review”), the Company shall take into account any change in the Executive’s
responsibilities, increases in the compensation of other executives of the
Company or of any Affiliate (or of any competitor(s) of either or both), the
performance of the Executive and/or any other pertinent factors.  If an increase is approved by the Company,
then such increased Base Salary shall then constitute the Executive’s “Base
Salary” for purposes of this Agreement.

3.2           Annual
Bonus.  Provided he is still employed
on the payment date, Executive shall receive an Annual Bonus in the amount of
fifty percent (50%) of total amount of Base Salary paid to Executive in the
prior calendar year.  The payment date of
the Annual Bonus shall be on or before the last day of the first calendar
quarter of the year following the year to which the Annual Bonus applies.

3.3           LTIP.  The Executive is eligible to participate in
the LTIP on the terms of the plan which was adopted on October 1, 2006 as the
plan is amended from time to time.

3.4           Merger
Bonus.  Executive has advised Company
that on or about April 5, 2007 the stockholders of Harrah’s Entertainment
approved a merger and merger agreement with affiliates of Texas Pacific Group
(TPG) and Apollo Management, L.P. (the Merger). 
Provided that Executive is still employed with the Company on the date
that the Merger closes, Executive shall receive a payment of $50,000 within ten
business days of the date that Harrah’s shareholders receive their cash payment
for their shares.

4.             PENSION AND WELFARE
BENEFIT PLANS.  Beginning on the
Effective Date, the Executive shall be entitled to participate in all employee
benefit programs and plans, consistent with the terms of such programs and
plans, made available to the Company’s executives or salaried employees
generally, as such programs may be in effect from time to time.

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5.             BUSINESS EXPENSE
REIMBURSEMENT AND PERQUISITES.

5.1           Expense
Reimbursement. During the Term, and in accordance with applicable company
policies, the Executive shall be entitled to receive reimbursement by the Company
for all reasonable out-of-pocket expenses incurred by him in performing
services under this Agreement and in relation to the Company, subject to
providing reasonable documentation of such expenses.

5.2           Perquisites.
During the Term, the Executive also shall be entitled to any of the Company’s
executive perquisites in accordance with the terms and provisions of the
applicable policies.  Executive shall be
entitled to participate in all PTO and Vacation programs, consistent with the
terms of such programs, made available to the Company’s executives or salaried
employees generally, as such programs may be in effect from time to time.

6.             TERMINATION OF
EMPLOYMENT.

6.1           Termination Due to
Death or Disability.  The Executive’s
employment shall be terminated immediately in the event of his death or
Disability. In the event of a termination due to the Executive’s death or
Disability, the Executive or his estate, as applicable, shall be entitled, in
lieu of any other compensation whatsoever, to the following:

(a)                                  any
earned and non-paid Installment of Base Salary at the rate in effect at the
time of his termination through the date of death;

(b)                                 reimbursement
of expenses incurred but not paid prior to such termination of employment;

(c)                                  such
rights to other payments and benefits as may be provided in applicable plans
and programs of the Company, including the LTIP, according to the terms and
provisions of such plans and programs;

6.2           Termination by the
Company for Cause.  The Company may
terminate the Executive’s employment for Cause at any time during the Term by
giving written notice to the Executive of the Company’s intention to terminate
his employment for Cause.  In the event
of a termination for Cause, the Executive shall be entitled, in lieu of any
other compensation and benefits whatsoever, to the following:

 7
 

(a)                                  any
earned and non-paid Installment of Base Salary at the rate in effect at the
time of his termination through the date of termination of employment;

(b)                                 reimbursement
of expenses incurred but not paid prior to such termination of employment; and

6.3           Termination by the
Company Without Cause. 
Notwithstanding any other provision of this Agreement, the Company may
terminate the Executive’s employment without Cause, other than due to death or
Disability, at any time during the Term by giving thirty (30) days’ written
notice to the Executive or payment in lieu of notice. In the event that the
Company terminates the Executive’s employment without Cause, the Executive
shall be subject to and shall be entitled, in lieu of any other compensation
and benefits whatsoever, to:

(a)                                  in
addition to any earned and non-paid Installment of Base Salary at the rate in
effect at the time of his termination through the date of termination of
employment, an amount equal to twelve (12) months of Executive’s Base Salary in
effect at the time of termination.

(I)                                    the
forgoing amount (set out in Section 6.3 (a) above) shall be paid to Executive
in equal monthly payments during the Restriction Period.  The first of the monthly payments shall be
made upon satisfaction of the conditions set forth in Section 8.3;

(b)                                 reimbursement
for expenses incurred but not paid prior to such termination of employment.

(c)                                  such
rights to other payments and benefits as may be provided in applicable plans
and programs of the Company, including the LTIP, according to the terms and
conditions of such plans and programs; and

(d)                                 Executive
shall be subject to the Restricted Area and the Restriction Period provision
set 

 8
 

forth
herein in Sections 1.19 and 1.20 respectively.

6.4           Termination by the
Executive for Good Reason.  The
Executive may terminate his employment for Good Reason by giving written notice
to the Company of the Executive’s intention to terminate his employment for
Good Reason. Such written notice shall describe with reasonable specificity (a)
the particular act, acts, or omission that provides the basis for the Executive’s
termination for Good Reason; and (b) one or more reasonable and acceptable
remedy(ies) for such act, acts or omission. The Company shall be given thirty
(30) calendar days from the receipt of such notice to cure such act, acts, or
omission as stated in the foregoing notice.   
During such cure period, the Executive shall continue to perform as set
forth herein. If after thirty (30) calendar days, the Company is unable to cure
such act, acts, or omission that was the written basis for termination by the
Executive for Good Reason the Executive shall terminate his employment with the
Company under this Section 6.4.  In the
event of a termination for Good Reason, the Executive shall be entitled, in
lieu of any other compensation and benefits whatsoever, to the following:

(a)                                  in
addition to any earned and non-paid Installment of Base Salary at the rate in
effect at the time of his termination through the date of termination of
employment, an amount equal to three (3) months of Executive’s Base Salary in
effect at the time of termination.

(I)                                    the
forgoing amount (set out in Section 6.4 (a) above) shall be paid to Executive
in equal monthly payments during the Restriction Period.  The first of the monthly payments shall be
made upon satisfaction of the conditions set forth in Section 8.3;

(b)                                 reimbursement
for expenses incurred but not paid prior to such termination of employment;

(c)
                               such
rights to other payments and benefits as may be provided in applicable plans
and programs of the Company, including the LTIP, according to the terms and
conditions of such plans and programs; and

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(d)                                 Executive
shall be subject to the Restricted Area and the Restriction Period provision
set forth herein in Sections 1.19 and 1.20 respectively.

6.5           Termination by the
Executive Without Good Reason.  The
Executive may terminate his employment on his own initiative at any time and
for any reason upon thirty (30) days’ prior written notice to the Company.  In the event of a termination without Good
Reason, the Executive shall be entitled, in lieu of any other compensation and
benefits whatsoever, to the following:

(a)                                  any
earned and non-paid Installment of Base Salary at the rate in effect at the
time of his termination through the date of termination of employment;

(b)                                 reimbursement
of expenses incurred but not paid prior to such termination of employment; and

(c)                                  Executive
shall be subject to the Restricted Area and the Restriction Period provisions
set forth herein in Sections 1.19 and 1.20 respectively.

6.6           Expiration.  Upon
expiration of the Term, the Executive shall not be entitled to any additional
compensation after the expiration thereof, but such termination of employment
shall not otherwise affect accrued but unpaid compensation, benefits, bonus, or
otherwise provided under this Agreement or pursuant to any Company plan or
program.

7.             CHANGE IN CONTROL;
BUY-OUT OPTION.

7.1           Buyout Termination.  The
Company shall give the Executive at least ninety (90) calendar days’ notice of
any pending Change in Control.  Within
thirty (30) calendar days of receiving notice of a pending Change in Control,
the Executive shall have the option, in his sole and absolute discretion, to
terminate this Agreement by delivering written notice to the Company (“Buy-Out
Termination”).  A Buy-Out Termination
pursuant to this Section 7 shall be effective upon the consummation, or
closing, of the transaction(s) that will result in the Change in Control.

 10
 

7.2           Buyout
Payment. Upon a Buyout Termination
pursuant to this Section 7, the Executive shall be entitled to all earned but
unpaid Base Salary and all accrued but unpaid benefits provided under this
Agreement or pursuant to any Company plan or program.  In addition to the foregoing, the Company
shall pay the Executive a Buyout Payment in an amount equal to twelve (12)
months of Executive’s Base Salary in effect at the time of the Buyout Payment
plus a bonus in the amount of six (6) months of Executive’s Base Salary in
effect at the time of the Buyout Payment. 
One hundred percent (100%) of the foregoing payment shall be made by the
Company to the Executive in a lump sum upon satisfaction of the conditions set
forth in Section 8.3.

8.             CONDITIONS
TO PAYMENTS UPON TERMINATION.

8.1           Timing
of Payments.  Unless otherwise
provided herein, any payments to which the Executive shall be entitled pursuant
to Sections 6 (excluding Section 6.2) or 7 shall be payable upon the
satisfaction of the conditions set forth in Subsection 8.3.

8.2           No
Mitigation; No Offset. 
Notwithstanding any contrary provision contained herein, so long as the
Executive’s employment terminates in accordance with Sections 6 or 7 of this
Agreement, the exclusive remedies available to the Executive shall be the
amounts due under Sections 6 or 7, which are in the nature of severance
payments, or liquidated damages, or both, and are not in the nature of a
penalty. The Executive shall have no duty to mitigate, and there shall be no offset
against amounts due to the Executive on account of any remuneration
attributable to any subsequent employment that the Executive may obtain after
termination of this Agreement. In the event of a termination of this Agreement,
neither Party shall publish in any way or make any negative comment or
statement about the other Party or concerning the reasons for such termination.
The provisions of this Subsection 8.2 shall survive the expiration or earlier
termination of this Agreement.

8.3           General
Release.  No payments or benefits
payable to the Executive upon the termination of his employment pursuant to
Sections 6 (excluding Section 6.2) or 7 of this Agreement shall be made to the
Executive unless and until he executes a general release substantially in the
form attached hereto as Exhibit “A”.

8.4           Compliance with
the Agreement. Payments or benefits payable to the Executive upon the
termination of his employment pursuant to Sections 6 or 7 of this Agreement
shall be made by the Company to the Executive in reliance upon the Executive’s
compliance with any material, post-employment obligation contained in this
Agreement, including, without limitation, those obligations contained in
Sections 10 and 11 of this Agreement.

 11

8.5           Continuing
Obligations of the Executive. No act or omission by the Executive in breach
of this Agreement, including, without limitation, his failure to execute the
general release, shall be deemed to permit the Executive to forego or waive
such payments in order to avoid his obligations under Sections 10 and 11 of
this Agreement.

9.             INDEMNIFICATION.   The Company agrees that if the Executive is
made a party or is threatened to be made a party to any action, suit or
proceeding, whether civil, criminal, administrative or investigative (an “Indemnifiable
Action”), by reason of the fact that he is or was a director or officer of
the Company or is or was serving at the request of the Company as a director,
officer, member, employee or agent of another corporation or of a partnership,
joint venture, trust or other enterprise, including service with respect to
employee benefit plans, regardless of whether the basis of such Indemnifiable
Action is alleged action in an official capacity as a director, officer, member,
employee or agent, he shall be indemnified and held harmless by the Company to
the fullest extent permitted by Nevada law and the Company’s by-laws and
operating agreements, as applicable, as the same exist or may hereafter be
amended (but, in the case of any such amendment to the Company’s by-laws and/or
operating agreement(s), only to the extent such amendment permits the Company
to provide broader indemnification rights than the Company’s by-laws and/or
operating agreement(s) permitted the Company to provide before such amendment),
against all expense, liability and loss (including, without limitation,
attorneys’ fees, costs, judgments, fines, and amounts paid or to be paid in
settlement) reasonably incurred or suffered by the Executive in connection
therewith.

10.           NON-SOLICITATION
AND NON-DISCLOSURE.

10.1         General.   The Parties understand and agree that the
purpose of the restrictions contained in this Section 10 is to protect the
goodwill and other legitimate business interests of the Company, and that the
Company would not have entered into this Agreement in the absence of such
restrictions. The Executive acknowledges and agrees that the restrictions are
reasonable and do not, and will not, unduly impair his ability to make a living
after the termination of his employment with the Company.

10.2         Non-Solicitation.   In consideration for this Agreement to
employ the Executive and the other valuable consideration provided for
hereunder, the Executive warrants and covenants that during the Term and during
the Restriction Period, if applicable, that Executive shall not unless acting
on behalf of the Company or on behalf of any Affiliate,  directly or indirectly, for himself or any
third party, or alone or as a member of a partnership, or as an officer, director,
shareholder or otherwise:

 12
 

(a)                                  call
on, solicit, induce to leave and/or take away, or attempt to call on, solicit,
induce to leave and/or take away, any of the customers of the Company, either
for Executive’s own account or for any third party;

(b)                                 call
on, solicit and/or take away, any potential or prospective customer of the
Company, on whom the Executive called or with whom Executive became acquainted
during employment (either before or during the Term), either for Executive’s
own account or for any third party; and/or

(c)                                  approach
or solicit any employee or independent contractor of the Company with a view
towards enticing such person to leave the employ or service of the Company, or
hire or contract with any employee or independent contractor of the Company,
without the prior written consent of the Company, such consent to be within the
Company’s sole and absolute discretion.

10.3         Non-Compete.   In consideration for this Agreement to
employ the Executive and the other valuable consideration provided for
hereunder, the Executive warrants and covenants that during the Term, Executive
shall not accept any position or affiliation with, or render any services to
any Competing Business. Further, Executive warrants and covenants that
Executive, during the Restriction Period, if applicable, shall not accept any
position or affiliation with, or render any services to any Competing Business
within the Restricted Area.

10.4         Non-Disclosure.   In consideration for this Agreement to
employ the Executive and the other valuable consideration provided for
hereunder, the Executive warrants and covenants that Executive shall not engage
in the following acts:

(a)                                  make
known to any third party the names and addresses of any of the customers of the
Company, or any other information pertaining to those customers; and/or

 13
 

(b)                                 make
known to any third party any Confidential Information.

10.5         Survival.   The Executive agrees that the provisions of
this Section 10 shall survive the termination of this Agreement by the Company
with or without Cause or by the Executive with or without Good Reason.

11.           CONFIDENTIAL
INFORMATION AND COMPANY PROPERTY.

11.1         Confidential
Information.   The Executive
understands and acknowledges that Confidential Information constitutes a
valuable asset of the Company and its Affiliates and may not be converted to
the Executive’s own or any third party’s use by the Executive. Accordingly, the
Executive hereby agrees that he shall not directly or indirectly, during the
Term or any time thereafter, disclose any Confidential Information
intentionally to any Person not authorized by the Company to receive such
Confidential Information. The Executive further agrees that he shall not
directly or indirectly, during the Term or any time thereafter, use or make use
of any Confidential Information in connection with any business activity other
than that of the Company. The Parties acknowledge and agree that this Agreement
is not intended to, and does not, alter either the Company’s rights or the
Executive’s obligations under any applicable laws regarding trade secrets and
unfair trade practices.

11.2         Company
Property.  All Company Property is
and shall remain exclusively the property of the Company. Unless authorized in
writing to the contrary, the Executive promptly shall deliver to the Company
upon termination or expiration of this Agreement, or at any other time the
Company reasonably may so request, all Company Property that the Executive has
in his possession.

11.3         Required
Disclosure.  In the event the
Executive is required by law or court order to disclose any Confidential
Information or to produce any Company Property, the Executive promptly shall
notify the Company of such requirement and provide the Company with a copy of
any court order or of any law that requires such disclosure and, if the Company
so elects, to the extent permitted by law, give the Company an adequate
opportunity, at its own expense, to contest such law or court order prior to
any such required disclosure or production by the Executive.

11.4         Survival.   The Executive agrees that the provisions of
this Section 11 shall survive the termination of this Agreement.

12.           MUTUAL
ARBITRATION AGREEMENT.  Except for
disputes relating to Worker’s Compensation claims of the Executive, any and all
disputes that may arise between the Parties, which shall include but are not
limited to any 

 14
 

employment related claim whether based on statute or common law and/or
disputes relating to this Agreement, shall be resolved by arbitration
administered by the American Arbitration Association under its National Rules
for Resolution of Employment Disputes or other applicable rules or as otherwise
mutually agreed to by the Parties.  Any
arbitration under this paragraph shall take place in Las Vegas, Nevada and
shall be governed by the procedural and substantive law of Nevada.  However, nothing herein shall preclude or
prohibit the Company or the Executive from seeking or obtaining injunctive
relief in court.

13.           NOTICES.  All notices, demands and requests required or
permitted to be given to either Party under this Agreement shall be in writing
and shall be deemed to have been given when delivered personally or sent by
certified or registered mail, postage prepaid, return receipt requested, duly
addressed to the Party concerned at the address indicated below or to such
changed address of which such Party may subsequently give written notice:

	
  If to the Company:

  	
   

  	
  Black Gaming LLC

  
	
   

  	
  Attn.

  	
  Mr. Robert R. Black, Sr.

  
	
   

  	
   

  	
  10777 West Twain
  Avenue

  
	
   

  	
   

  	
  Las Vegas,
  Nevada 89135

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Black, LoBello & Sparks

  
	
   

  	
  Attn.

  	
  Tisha Black-Chernine, Esq.

  
	
   

  	
   

  	
  10777 West Twain
  Avenue

  
	
   

  	
   

  	
  Las Vegas,
  Nevada 89135

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  If to the
  Executive:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

14.           ASSIGNMENT.
Executive understands that his employment, or continued employment, is
consideration for the Non-Competition, Non-Disclosure and Non-Solicitation
Covenants contained herein in Section 10 of this Agreement. Executive also
understands and agrees that in consideration of the payment of ONE HUNDRED
DOLLARS ($100.00), which Executive has received upon execution of this
Agreement, the Non-Competition Covenants in Section 10 of this Agreement shall
be assignable by Company as set forth herein. Further, it is understood that
the Executive may not assign any rights or delegate any duties under this
Agreement.

15.           BENEFICIARIES/REFERENCES.  The Executive shall be entitled to select a
beneficiary or beneficiaries to receive any compensation or benefit payable 

 15
 

hereunder following the Executive’s death and may change such election
by giving the Company written notice thereof pursuant to this Agreement.  In the event of the Executive’s death or a
judicial determination of his incompetence, reference in this Agreement to the
Executive shall be deemed, where appropriate, to refer to his beneficiaries,
estate or other legal representative.

16.           SURVIVORSHIP.  The respective rights and obligations of the
Parties hereunder shall survive the expiration or earlier termination of this
Agreement to the extent necessary to the intended preservation of such rights
and obligations. The provisions of this Section 16  are in addition to the survivorship provisions of any other
section of this Agreement.

17.           REPRESENTATIONS
AND WARRANTIES OF THE EXECUTIVE.  The Executive
hereby represents and warrants that he has the full legal capacity to enter
into this Agreement and that there is no agreement to which he is a party or
beneficiary that would prevent, contravene or otherwise adversely impact the
Executive’s ability to comply with the terms and obligations set forth herein.

18.           REPRESENTATIONS
AND WARRANTIES OF THE COMPANY. The Company hereby represents and warrants to
the Executive that there is no agreement to which it is a party or beneficiary
that would prevent, contravene or otherwise adversely impact the Company’s
ability to comply with the terms and obligations set forth herein.  As of the Effective Date, the Company further
represents and warrants to the Executive that upon execution of this Agreement,
this Agreement shall become a binding obligation of the Company and shall be
enforceable against it in accordance with its terms, except as may be limited
by laws generally affecting the enforcement of contracts.  The Company further represents and warrants
that the Company is a limited liability company, duly organized and
incorporated, validly existing and in good standing under the laws of the State
of Nevada and is duly qualified and in good standing in such other
jurisdictions wherein the nature of the business transacted by it or property
owned by it makes such qualification necessary. 
The Company has the valid limited liability company power to enter into
and perform all of its obligations under this Agreement, and this Agreement has
been authorized by all necessary limited liability company action.

19.           ENTIRE
AGREEMENT.  This Agreement contains the
entire agreement between the Parties concerning the subject matter hereof and
supersedes all prior agreements, understandings, discussions, negotiations and
undertakings, whether written or oral, express or implied, between the Parties
with respect hereto. No representations, inducements, promises or agreements
that are not set forth herein shall be of any force or effect.

 16
 

20.           ASSIGNABILITY;
BINDING NATURE.  This Agreement shall be
binding upon and inure to the benefit of the parties and their respective
successors, heirs and assigns; provided, however, that no rights or obligations
of the Executive under this Agreement may be assigned or transferred by the
Executive, other than rights to compensation and benefits hereunder, that may
be transferred only by will or operation of law and subject to the limitations
of this Agreement.

21.           AMENDMENT
OR WAIVER.  No provision in this
Agreement may be amended or waived unless such amendment or waiver is agreed to
in writing, signed by both Parties. No waiver by one Party of any breach by the
other Party of any condition or provision of this Agreement to be performed by
such other Party shall be deemed a waiver of a similar or dissimilar condition
or provision at the same or any prior or subsequent time.

22.           SEVERABILITY.  In the event that any provision or portion of
this Agreement, except Section 6, Section 7 and Section 10, shall be determined
to be invalid or unenforceable for any reason, in whole or in part, the
remaining provisions of this Agreement shall be unaffected thereby and shall
remain in full force and effect to the fullest extent permitted by law. If
Section 6, Section 7 or Section  10
is determined to be invalid or unenforceable for any reason, in whole or in
part, either Party may terminate this Agreement without further obligations or
duties hereunder.

23.           GOVERNING
LAW.  To the extent not otherwise
expressly stated herein, any and all dispute resolution shall be governed by
and construed and interpreted in accordance with the procedural and substantive
laws of the State of Nevada without reference to the principles of conflict of
laws thereof.

24.           HEADINGS.  The headings of the sections and subsections
contained in this Agreement are for convenience only and shall not be deemed to
control or affect the meaning or construction of any provision of this
Agreement.

25.           COUNTERPARTS.  This Agreement may be executed in
counterparts, including facsimile counterparts, each of which shall be deemed
an original and all of which shall constitute one and the same Agreement with
the same effect as if all Parties had signed the same signature page. Any
signature page of this Agreement may be detached from any counterpart of this
Agreement and reattached to any other counterpart of this Agreement identical
in form hereto but having attached to it one or more additional signature
pages.

26.           ACKNOWLEDGMENT.  The Executive represents and acknowledges
that he has carefully read this Agreement in its entirety, understands the
terms and conditions contained herein, has had the opportunity to review this
Agreement with 

 17
 

legal counsel of his own choosing and has not relied on any statements
made by the Company or its legal counsel as to the meaning of any term or
condition contained herein or in deciding whether to enter into this Agreement,
and is entering into this Agreement knowingly and voluntarily.

27.           ATTORNEYS’
FEES. In the event an action, claim or suit is brought to enforce the terms of
this Agreement or to collect damages claimed as a result of a breach of this
Agreement, the prevailing party shall be entitled to recover its reasonable
attorneys’ fees, costs and all other expenses reasonably associated with the
enforcement of this Agreement.

28.           GAMING
INVESTIGATION.  In the event the
Executive is required to apply for and obtain any license, permit, approval,
authorization, registration, finding of suitability, or otherwise from any
Gaming Authority necessary for the conduct of the Executive’s business on
behalf of the Company (collectively, the “Approvals”), then the Company
shall pay all costs and expenses of any nature whatsoever, including reasonable
attorneys’ fees, in connection with such Approvals, including, without limitation,
any costs and expenses of any nature whatsoever associated with the
investigation of the Executive by any Gaming Authority.

29.           TOLLING.
In the event Executive breaches any of the covenants contained herein and
Company seeks compliance with those covenants by judicial proceedings, the time
periods during which Executive is restricted by said covenants shall be
extended by the time during which the Executive is found by a court of
competent jurisdiction to have been in breach of said covenants.

30.           LIMITATION
OF RESTRICTIONS.   It is the
intention of the parties hereto that the potential restrictions on Executive’s
future employment and communications imposed by Sections 10 and 11 of this
Agreement be reasonable in both duration and geographic scope and in all other
respects. If for any reason any court of competent jurisdiction shall find any
of the provisions of Sections 10 and 11 unreasonable in duration or geographic
scope or otherwise, the parties agree that the restrictions and prohibitions
contained therein shall be reduced or limited so as to be effective to the
fullest extent allowable under applicable law.

[Signatures appear on the following page.]

 18
 

IN WITNESS WHEREOF, the Parties have executed this
Agreement as of the Effective Date.

BLACK GAMING, LLC,

a Nevada limited liability company.

	
   

  	
   

  
	
  

  	
   

  
	
  By:

  	
   

  	
  Robert “Randy” Black, Sr.

  
	
  Its:

  	
   

  	
  Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
  Jason Goudie

  
				

 

 19
 

EXHIBIT
A

GENERAL
RELEASE

1. I,                                                  
(the “Executive”), for and in consideration of certain payments to be made and
the benefits to be provided to me under Section 8 of my Employment Agreement
dated as of                                   
(the “Employment Agreement”) with BLACK GAMING, LLC (the “Company”), and
conditioned upon such payments and provisions, do hereby REMISE, RELEASE, AND
FOREVER DISCHARGE the Company and each of its parents, subsidiaries and
affiliates, their officers, directors, shareholders, partners, members,
employees, attorneys and agents, their respective successors and assigns,
heirs, executors and administrators (hereinafter collectively included within
the term the “Company”), acting in any capacity whatsoever, of and from any and
all manner of actions and causes of actions, suits, debts, claims and demands
whatsoever in law or in equity, which I ever had, now have, or hereafter may
have, or which my heirs, executors or administrators hereafter may have, by
reason of any matter, cause or thing whatsoever from the beginning of my employment
with the Company to the date of these presents arising from or relating in any
way to my employment relationship and the termination of my employment
relationship with the Company, including but not limited to, any claims which
have been asserted, could have been asserted, or could be asserted now or in
the future under any federal, state or local laws, including any claims under
the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. §621 et seq., Americans with Disabilities Act (“ADA”),
42 U.S.C. §2000e et seq., Title
VII of the Civil Rights Act of 1964, 42 U.S.C. §2000e et seq., any contracts between the Company
and me and any common law claims now or hereafter recognized and all claims for
counsel fees and costs; provided, however, that this General Release shall not
apply to any entitlements under the terms of the Employment Agreement or under
any other plans or programs of the Company in which I participated and under
which I have accrued and become entitled to a benefit.

2. I hereby agree and
recognize that my employment by the Company was permanently and irrevocably
severed on                  
, and the Company has no obligation, contractual or otherwise to me to hire,
rehire or re-employ me in the future. I acknowledge that the terms of the
Employment Agreement provide me with payments and benefits which are in
addition to any amounts to which I otherwise would have been entitled.

3. I hereby agree and
acknowledge that the payments and benefits provided by the Company are to bring
about an amicable resolution of my employment arrangements and are not to be
construed as an admission of any violation of any federal, state or local
statute or regulation, or of any duty owed by the Company and that this
Agreement and General Release is made voluntarily to provide an amicable
resolution of my employment relationship with the Company and the termination
of the Employment Agreement.

 20
 

4. I hereby certify that
I have read the terms of this General Release, that I have been advised by the
Company to discuss it with my attorney, and that I understand its terms and
effects. I acknowledge, further, that I am executing this General Release of my
own volition with a full understanding of its terms and effects and with the
intention of releasing all claims recited herein in exchange for the
consideration described in the Employment Agreement, which I acknowledge is
adequate and satisfactory to me. None of the above-named parties, nor their
agents, representatives, or attorneys have made any representations to me
concerning the terms or effects of this General Release other than those
contained herein.

5. I hereby acknowledge
that I have been informed that I have the right to consider this General
Release for a period of 21 days prior to execution. I also understand that I
have the right to revoke this General Release for a period of seven days
following execution by giving written notice to the Company.

Intending to be legally bound hereby, I execute the foregoing General
Release this               
day of                           ,
20       . 

	
  Witness

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Executive

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Jason Goudie

  
												

 

 21

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