Document:

Exhibit 10.21

 

FOURTH AMENDMENT TO
 HADDRILL EMPLOYMENT AGREEMENT

 

This Fourth Amendment to the Employment Agreement (the “Fourth Amendment”) is made and entered into as of February  13, 2008 (the “Effective Date”), by and between Bally Technologies, Inc., a Nevada corporation (the “Company”), and Richard Haddrill (“Haddrill”).

 

WHEREAS, the Company and Haddrill are parties to that certain Employment Agreement dated as of June 30, 2004, as amended on December 22, 2004, June 13, 2005 and June 20, 2006 (as amended, the “Employment Agreement”) pursuant to which Haddrill is employed as the Company’s Chief Executive Officer;

 

WHEREAS, the Employment Agreement is scheduled to terminate on January 1, 2009 (the “Original Expiration Date”); and

 

WHEREAS, the Company and Haddrill desire to further amend the Employment Agreement to grant additional non-statutory stock options and restricted stock units and to provide for the automatic extension of the term of the Employment Agreement beyond January 1, 2009, in each case, in accordance with and subject to the terms and conditions of this Fourth Amendment.

 

NOW THEREFORE, on the basis of the foregoing premises and in consideration of the mutual covenants and agreements contained herein, the parties hereto agree as follows:

 

1.                                      The Company and Haddrill agree that Section 3 of the Employment Agreement is hereby deleted in its entirety and replaced with the following:

 

“3.                                Term. The term of this Agreement will commence on a mutually agreeable date (the “Commencement Date”), which shall not be later than October 1, 2004. The term of this Agreement and Haddrill’s employment by the Company hereunder will continue, unless earlier terminated pursuant to Section 7 of this Agreement, through January 1, 2009 and shall thereafter be automatically renewed for an indefinite number of one (1) year periods unless either party gives written notice to the other party of its intention not to renew at least ninety (90) days prior to the expiration of said term.”

 

2.                                      During the term of the Employment Agreement, (i) Haddrill will continue to receive the compensation and benefits currently provided to him on the terms and conditions set forth in Sections 4(a) and (b) of the Employment Agreement, (ii) Haddrill’s base salary will remain at $998,000 per year and (iii) Haddrill will continue to be entitled to five weeks of vacation time per year.

 

3.                                      The Company shall grant Haddrill additional non-statutory stock options (the “Additional Options”) to acquire 50,000 shares of the Company’s common stock under the Company’s Amended and Restated 2001 Long Term Incentive Plan (the “Plan”). The grant date of the Additional Options shall be February 22, 2008. The Additional Options shall be granted at an exercise price per share equal to the closing price of the stock on the grant date. The Additional Options shall vest and be subject to the terms and conditions set forth in the Plan and on Schedule A-2.

 

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4.                                      The Company shall grant Haddrill a number of restricted stock units under the Plan (the “Additional Restricted Stock Units”) having a value equal to $1 million dollars, as calculated in accordance with Schedule B-2 hereto. The grant date of the Additional Restricted Stock Units shall be February 22, 2008. The Additional Restricted Stock Units shall vest and be subject to the terms and conditions set forth in the Plan and on Schedule B-2 hereto.

 

5.                                      Except as expressly modified by this Fourth Amendment, the Employment Agreement shall remain unchanged and shall remain in full force and effect.

 

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IN WITNESS WHEREOF, the Company and Haddrill have duly executed this Fourth Amendment as of the date first above written.

 

 

	
 
    	
BALLY TECHNOLOGIES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Richard Haddrill
    
					

 

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Schedule A-2

 

ADDITIONAL OPTIONS

 

1.                                      The Additional Options shall vest as follows:  (i) 16,667 shares shall vest on June 30, 2009, (ii) an additional 16,667 shares shall vest on December 31, 2009, and (iii) the final 16,666 shares shall vest on June 30, 2010, in each case, so long as Haddrill remains in continuous service with the Company through each such date.

 

2.                                      If Haddrill’s employment with the Company is terminated under paragraphs 7(b) or 7(c) of the Employment Agreement, and such termination of employment occurs after January 1, 2009, in addition to the other compensation and benefits provided under the Employment Agreement, the vesting of the Additional Options shall be pro-rated through the month in which the date of termination occurs (taking into account that portion of the award that has already vested in accordance with its terms), based upon the number of full months between January 1, 2009, and the date of Haddrill’s termination of employment divided by 18 months.

 

3.                                      In addition to the above, notwithstanding any provision of the Employment Agreement, or the Plan to the contrary, in the event of a Change of Control (as defined in the Employment Agreement): (i) if such Change of Control is consummated on or prior to January 1, 2009, and, within one year following such Change of Control Haddrill’s service with the Company (or any successor) is terminated under paragraphs 7(b) or 7(c) of the Employment Agreement, the Additional Options shall become immediately and fully vested and exercisable effective as of immediately prior to the date of such termination of service and (ii) if such Change of Control is consummated after January 1, 2009, the Additional Options shall become immediately and fully vested and exercisable effective as of immediately prior to such Change of Control.

 

4.                                      Once the Additional Options become vested and exercisable hereunder, they shall remain exercisable until the seventh anniversary of the date of grant thereof without regard to whether Haddrill remains in continuous service with the Company through such date.

 

5.                                      Except as described in this Schedule A-2, upon a termination of Haddrill’s service with the Company (or any successor) for any reason, the unvested portion of the Additional Options at the time of such termination of service (after giving effect to the accelerated vesting, if any, described in this Schedule A-2, if any) shall terminate effective as of the date of termination.

 

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Schedule B-2

 

ADDITIONAL RESTRICTED STOCK UNITS

 

1.                                      The number of shares of common stock subject to the Additional Restricted Stock Units shall be determined by dividing $1 million dollars by the average per share closing price of the Company’s common stock on the stock exchange in which the stock is principally traded for the 20 business days immediately prior to the date of the grant.

 

2.                                      The Additional Restricted Stock Units shall vest as follows:  (i) 50% of the units shall vest on June 30, 2009 and (ii) the remaining 50% of the units shall vest on January 1, 2010, in each case, so long as Haddrill remains in continuous service with the Company through each such date.

 

3.                                      If Haddrill’s employment with the Company is terminated under paragraphs 7(b) or 7(c) of the Employment Agreement, and such termination occurs after January 1, 2009, in addition to the other compensation and benefits provided under the Employment Agreement, the vesting of the Additional Restricted Stock Units will accelerate in full as of the termination date.

 

4.                                      In addition to the above, notwithstanding any provision of the Employment Agreement, or the Plan to the contrary, in the event of a Change of Control (as defined in the Employment Agreement): (i) if such Change of Control is consummated on or prior to January 1, 2009, and, within one year following such Change of Control Haddrill’s service with the Company (or any successor) is terminated under paragraphs 7(b) or 7(c) of the Employment Agreement, the Additional Restricted Stock Units shall become immediately and fully vested and exercisable effective as of immediately prior to the date of such termination of service and (ii) if such Change of Control is consummated after January 1, 2009, the Additional Restricted Stock Units shall become immediately and fully vested and exercisable effective as of immediately prior to such Change of Control.

 

5.                                      Each vested Additional Restricted Stock Unit represents Haddrill’s right to receive one share of the Company’s common stock on the applicable vesting date (subject to the terms and conditions of the Plan, including the satisfaction of any tax withholding obligations).

 

6.                                      Except as described in this Schedule B-2, upon a termination of Haddrill’s service with the Company (or any successor) for any reason, the unvested portion of the Additional Restricted Stock Units at the time of such termination of service (after giving effect to the accelerated vesting, if any, described in this Schedule B-2, if any) shall be forfeited effective as of the date of termination.

 

5Exhibit 10.28

 

RESTRICTED STOCK UNIT AGREEMENT

 

	
Grantee:   Ramesh Srinivasan
    	
 
    	
Grant   Date: December 14, 2012
    
	
 
    	
 
    	
 
    
	
Plan:   2010 Long-Term Incentive Plan
    	
 
    	
Number   of Units: 66,122 (target)
    

 

RESTRICTED STOCK UNIT AGREEMENT (this “Agreement”) dated as of the Grant Date specified above between Bally Technologies, Inc., a Nevada corporation (the “Company”), and the Grantee specified above, pursuant to the Plan specified above as in effect and as amended from time to time.

 

1.                                            Incorporation By Reference. This Agreement is subject in all respects to the terms and provisions of the Plan, all of which are by this reference made a part of and incorporated in this Agreement.  Any capitalized term not defined in this Agreement shall have the meaning ascribed to it in the Plan.  If and to the extent this Agreement and the Plan conflict, the Plan shall control.

 

2.                                            Grant of Restricted Stock Units. The Company grants to the Grantee, as of the Grant Date specified above, an award of a number of restricted stock units equal to the Number of Units specified above (the “Restricted Stock Units”).  Each Restricted Stock Unit represents the right of the Grantee to receive one share of the common stock, $.10 par value, of the Company (the “Shares”) pursuant to the terms and conditions of this Agreement.

 

3.                                            Vesting of the Restricted Stock Units. Except as otherwise provided in the Employment Agreement, dated as of November 14, 2012, between the Company and the Grantee, as amended from time to time (the “Employment Agreement”), the Restricted Stock Units shall vest (i.e., become nonforfeitable) in accordance with Appendix A, attached hereto, so long as the Grantee remains in continuous service with the Company through any applicable vesting date.  Restricted Stock Units that have vested and are no longer subject to forfeiture are referred herein to as “Vested Units.”  Restricted Stock Units that have not yet vested and thus remain subject to forfeiture are referred herein to as “Unvested Units.”

 

4.                                            Settlement of Restricted Stock Units.  Each Vested Unit will be settled by the delivery of one Share (subject to adjustment under the Plan) to the Grantee or, in the event of the Grantee’s death, to the Grantee’s estate, heir or beneficiary, on the applicable vesting date; provided that the Grantee has satisfied all of the tax withholding obligations in connection with the vesting of the award, and that the Grantee has completed, signed and returned any documents and taken any additional action that the Company deems appropriate to enable it to accomplish the delivery of the Shares.  No fractional shares will be issued under this Agreement.

 

5.                                            Rights as a Stockholder. The Grantee shall have no rights as a stockholder (including, without limitation, any voting rights with respect to the Shares subject to the Restricted Stock Units) with respect to either the Restricted Stock Units granted hereunder or the Shares underlying the Restricted Stock Units, unless and until such Shares are issued in respect of Vested Units, and then only to the extent of such issued Shares.

 

6.                                            Forfeiture of Unvested Units. Except as otherwise provided in the Employment Agreement or any amendment thereto, if the Grantee’s service with the Company ceases, all Unvested Units shall be immediately forfeited.

 

7.                                            Withholding Taxes. The Company has the right to deduct or otherwise effect a withholding of the amount of any taxes (including, but not limited to, any FICA, FUTA, and similar taxes) required by federal, state, local or foreign laws to be withheld or otherwise deducted and paid with respect to the grant, vesting or settlement of the Restricted Stock Units; or, in lieu of such withholding, to require that the Grantee

 

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pay to the Company in cash (or, at the sole discretion of the Board or the Committee, in the form of Shares) the amount of any taxes required to be withheld or otherwise deducted and paid by the Company or its Subsidiary in connection with the grant, vesting or settlement of the Restricted Stock Units.  Unless the tax withholding obligations of the Company or any affiliate are satisfied, the Company will have no obligation to issue a certificate for any of the Shares subject to the Restricted Stock Units (whether vested or unvested).

 

8.                                            Non-transferability. Neither the Grantee nor the Grantee’s beneficiaries shall sell, exchange, transfer, assign, or otherwise dispose of any Restricted Stock Units (whether vested or unvested) or any rights or interests therein (including any Shares subject to Restricted Stock Units (whether vested or unvested) that have not yet been delivered to the Grantee).  The Grantee shall not pledge, encumber, or otherwise hypothecate the Restricted Stock Units (whether vested or unvested) or any rights or interests therein (including any Shares subject to Restricted Stock Units (whether vested or unvested) that have not yet been delivered to the Grantee) in any way at any time.  The Restricted Stock Units (and any undelivered Shares subject thereto) shall not be subject to execution, attachment, or similar legal process.  Any attempted sale, pledge, or other disposition of the Restricted Stock Units (or any undelivered Shares subject thereto) in violation of this paragraph shall be void and of no force or effect.

 

9.                                            Entire Agreement; Amendment. This Agreement contains the entire agreement between the parties and supersedes other oral and written agreements previously entered into by the parties concerning the same subject matter.  This Agreement may be modified or rescinded only with the written consent of both parties.

 

10.                                     Governing Law. Nevada law shall govern this Agreement and its interpretation.  The issuance of the Restricted Stock pursuant to this Agreement shall be subject to, and shall comply with, any applicable requirements of any federal and state securities laws, rules, and regulations (including but not limited to the Securities Act, the Exchange Act, and the respective rules and regulations promulgated thereunder) and any other applicable law or regulation.

 

11.                                     Binding Effect. This Agreement shall bind and inure to the benefit of the Company and its successors and assigns.

 

12.                                     Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which, taken together, shall constitute one and the same instrument.

 

	
BALLY   TECHNOLOGIES, INC.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Neil Davidson
    	
 
    	
/s/   Ramesh Srinivasan
    
	
 
    	
Neil   Davidson
    	
 
    	
Ramesh   Srinivasan
    

 

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Appendix A

 

The Restricted Stock Units shall vest as follows, subject to continued employment through the applicable vesting date.

 

1)                                     Vesting.

 

a)                                     For each Performance Period:

i)                                         22,040 Restricted Stock Units shall vest if the CAGR of the Company’s TSR is 10 percent;

ii)                                      11,020 Restricted Stock Units shall vest if the CAGR of the Company’s TSR is 8 percent;

iii)                                   11,021 to 22,039 Restricted Stock Units (subject to linear interpolation) shall vest if the CAGR of the Company’s TSR is between 8 to 10 percent; and

iv)                                  0 Restricted Stock Units shall vest if the CAGR of the Company’s TSR is below 8 percent.

 

b)                                     Any Restricted Stock Units that could have, but did not vest in the first or second Performance Period, shall vest at the end of the second or third Performance Period, as applicable, as follows:

i)                                         100 percent if the CAGR of the Company’s TSR is 10 percent;

ii)                                      50 percent if the CAGR of the Company’s TSR is 8 percent; and

iii)                                   50 to 100 percent (subject to linear interpolation) if the CAGR of the Company’s TSR is between 8 to 10 percent.

 

2)                                     Definitions.

 

a)                                     “CAGR” shall mean Compound Annual Growth Rate from the Starting Stock Price to the Closing Stock Price.

b)                                     “Closing Stock Price” shall mean the average closing stock price over the 20-day trading period ending on the last trading day of the applicable Performance Period.

c)                                      “Performance Period” shall mean each of the following three periods: December 14, 2012 – December 13, 2013, December 14, 2013 – December 13, 2014 and December 14, 2014 – December 13, 2015.

d)                                     “Starting Stock Price” shall mean the average closing stock price over the 20-day trading period ending on the Grant Date.

e)                                      “TSR” mean Total Shareholder Return.

 

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