Document:

ex101to8k05558_09112009.htm

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of September 14, 2009 (the “Commencement Date”), by and between Empire Resorts, Inc., a Delaware corporation (the “Company”), and Joseph A. D’Amato (the “Executive”, and the Company and the Executive collectively referred
to herein as “the Parties”).

 

W I T N E S S E T H:

 

WHEREAS, the Company desires to employ the Executive as Chief Financial Officer and to enter into an agreement embodying the terms of such employment (this “Agreement”), and the Executive desires to enter into employment with the Company, subject to the terms and conditions of this Agreement;

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants and promises of the Parties contained herein, the Parties, intending to be legally bound, hereby agree as follows:

 

1.            Term.  The term of employment under this Agreement shall be for the period beginning on the Commencement Date and ending on the third (3rd)
anniversary of the Commencement Date (the “Term”), or such earlier date upon which the Executive’s employment is terminated by either Party in accordance with the provisions of this Agreement.

 

2.             Employment.

 

(a)           Position.  As of the Commencement Date, the Executive shall be employed as Chief Financial Officer.  The Executive shall perform all of the duties normally accorded
to such position, as reasonably directed by the Company’s Chief Executive Officer.  The Executive shall report to the Company’s Chief Executive Officer.

 

(b)           Obligations.  The Executive agrees to perform his duties faithfully and devote all of his business time and attention to the business and affairs of the Company. Anything herein
to the contrary notwithstanding, nothing shall preclude the Executive from: (i) serving on the boards of directors of trade associations and/or charitable organizations; (ii) engaging in charitable activities and community affairs; and (iii) managing his personal investments and affairs, provided that the activities described in the preceding clauses (i) through (iii) do not materially interfere with the proper performance of his duties and responsibilities hereunder and do not prevent him from devoting his full
business time and attention to the affairs of the Company.  The Executive shall be required to perform his duties resident in the Company’s Monticello, New York office or such other place as the Company shall maintain its executive offices.

 

3.             Base Salary.  The Company agrees to pay or cause to be paid to the Executive during the Term a base salary at the rate of Two Hundred Fifty Thousand Dollars ($250,000)
per year for the Term (unless increased by the Company’s Board of Directors (the “Board”) in its sole discretion) (the base salary in effect shall be referred to herein as, the “Base Salary”).  Such Base Salary shall be payable, less applicable withholdings and deductions, in accordance with the Company’s reasonable and customary payroll practices applicable to its executive officers.

 

 

 

 

 

4.             Bonus.  The Executive shall be entitled to participate in any annual bonus plan maintained by the Company for its senior executives on such terms and conditions as may
be determined from time to time by the Compensation Committee of the Board.  The payment of any such bonus shall be in the absolute discretion of the Company.

 

5.             Additional Incentive.

 

(a)           The Compensation Committee of the Board granted to Executive an option to purchase 300,000 shares of the Company’s common stock (the “Options”) pursuant to the Company’s 2005 Equity Incentive Plan (the “Plan”) on September 1, 2009 (the
“Grant Date”) subject to the execution of this Agreement.  The per share exercise price applicable to the Options is $2.61, which represents 100% of the Fair Market Value (as defined in the Plan) of a share of the Company’s common stock on the Grant Date.  The Options vest as follows: 100,000 Options on September 14, 2010, 100,000 Options on September 14, 2011, and 100,000 Options on September 14, 2012, subject to earlier vesting as provided herein and in the Plan.  The
Options shall expire on the fifth anniversary of the Commencement Date.  Upon the occurrence of a Change in Control (as defined below), the Options shall be deemed fully vested and exercisable.  In the event of any conflict between the terms and provisions of this Section 5 and the Plan, the Plan shall govern.

 

(b)           For the purposes of this Agreement, “Change in Control” shall have the same meaning as in the Plan.

 

(c)           Employee Benefits.  The Executive shall be entitled to participate in all employee benefit plans, practices (including payment in lieu of participation) and programs maintained
by the Company and made available to senior level executive officers generally and as may be in effect from time to time, including any medical and health plans and any equity-based incentive programs that may be put into place, or to receive payment in lieu of participation in the Company’s medical plan consistent with Company policy.  The Executive’s participation in such plans, practices and programs shall be on the same basis and terms as are applicable to senior level executive officers
of the Company generally.  Such level of benefits shall be at a level commensurate with his position.

 

6.             Other Benefits.

 

(a)           Vacation.  During each calendar year of the Term, the Executive shall earn twenty (20) days of paid vacation in accordance with the Company’s vacation policy for senior
level executive officers.

 

(b)           Perquisites. The Executive shall be entitled to perquisites on the same basis as provided to other senior level executive officers at the Company.

 

(c)           Relocation.  The Executive shall be entitled to receive a payment of $10,000 for relocation less appropriate withholding taxes in connection with relocation to Monticello, New
York; provided that in the event the Executive terminates his employment without Good Reason (as defined herein) within 12 months of moving, he shall be required to reimburse the Company for such relocation payment.

 

 

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(d)           Temporary Housing.  The Executive shall be entitled to receive prompt reimbursement for expenses for up to 45 days of temporary housing upon receipt of appropriate documentation
of such expenses.

 

7.             Expenses.  The Executive shall be entitled to receive prompt reimbursement on not less than a monthly basis for all expenses reasonably incurred by him in connection with
the performance of his duties hereunder or for promoting, pursuing or otherwise furthering the business or interests of the Company (including but not limited to travel costs, dining and entertainment), in each case in accordance with policies established by the Board from time to time and upon receipt of appropriate documentation of such expenses (which policies comply with the Section 409A Rules (defined below in Section 11).

 

8.             Termination.

 

(a)           Death.  The Executive’s employment hereunder shall terminate automatically upon the Executive’s death.

 

(b)           Disability.  If during the Term of this Agreement, Executive becomes physically or mentally unable to perform his duties for the Company hereunder and such incapacity has continued
for a total of ninety (90) consecutive days or any one hundred twenty (120) days in a period of three hundred sixty-five (365) consecutive days (“Disability”), then the Company shall have the right to terminate Executive’s employment with the Company upon written notice to Executive.

 

(c)           Cause.  The Company shall be entitled to terminate the Executive’s employment for “Cause.” For purposes of this Agreement, “Cause” shall mean that
the Executive: (i) pleads “guilty” or “no contest” to or is convicted of an act which is defined as a felony under federal or state law or as a crime under federal or state law which involves Executive’s fraud or dishonesty; (ii) in carrying out his duties, engages in conduct that constitutes willful neglect or willful misconduct; provided such plea, conviction, neglect or misconduct results in material economic harm to the Company; (iii) fails to obtain or maintain required licenses
in the jurisdiction where the Company currently operates or has plans to operate; (iv) willfully and intentionally fails to reasonably perform the material responsibilities of the Executive’s position, (v) engages in any conduct that is reasonably likely to cause harm to the reputation of the Company; or (vi) materially breaches any term of this Agreement.  In the event any of the occurrences in (i) through (vi) above have occurred, the Executive shall be given written notice by the Company of
its intention to so terminate his employment, such notice; (i) to state in detail the particular act or acts or failure or failures to act that constitute the grounds on which the proposed termination for Cause is based and (ii) to be given within sixty (60) days after the Board knew of such acts or failures to act.  In the event such notice is timely given by the Company, the Executive shall have thirty (30) days after the date that the notice is given in which to cure such conduct, to the extent such
cure is possible.  For the avoidance of doubt, any of the occurrences constituting Cause set forth in clause (i) above cannot be cured.  No act or failure to act on Executive’s part will be considered “willful” unless done, or omitted to be done by Executive not in good faith and without reasonable belief that his action or omission was in the best interests of the Company.

 

 

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(d)           Good Reason.  The Executive may terminate his employment hereunder for “Good Reason”, which is defined to include the following events arising without the consent
of the Executive: (A) a diminution in the Executive’s Base Salary; (B) a material diminution in the Executive’s authority, duties or responsibilities under this Agreement; (C) the relocation of the Company’s executive office more than 100 miles from its current location if the Executive is required to relocate to such executive office; or (D) any other action or inaction that constitutes a material breach of the terms of this Agreement, as permitted under Section 409A of the Internal Revenue
Code of 1986, as amended (the “Code”).  In the event any of the occurrences in (A) through (C) above have occurred, the Company shall be given written notice by the Executive of his intention to so terminate his employment, such notice; (i) to state in detail the particular act or acts or failure or failures to act that constitute the grounds on which the proposed termination for Good Reason is based and (ii) to be given within thirty (30) days after the Executive knew of such acts or failures
to act.  In the event such notice is timely given by the Executive, the Company shall have thirty (30) days after the date that the notice is given in which to cure such conduct, to the extent such cure is possible.  The Executive shall have sixty (60) days from the date Executive knew of such acts or failures to act that constitute the grounds on which the proposed termination for Good Reason is based to terminate his employment for Good Reason.

 

(e)           Without Cause.  The Company may terminate the Executive’s employment hereunder without Cause at any time and for any reason (or for no reason) by giving the Executive a
Notice of Termination (as defined below).

 

(f)           Voluntary.  Notwithstanding anything contained elsewhere in this Agreement to the contrary, the Executive may terminate his employment hereunder at any time and for any reason
whatsoever or for no reason at all in the Executive’s sole discretion by giving the Company a Notice of Termination.  Such termination shall not be deemed a breach of this Agreement.

 

(g)           Notice of Termination.  For purposes of this Agreement, a “Notice of Termination” shall mean a notice which indicates the specific termination provision of this Agreement
relied upon and which sets forth in reasonable detail, if applicable, the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated.  For purposes of this Agreement, no purported termination of employment which requires a Notice of Termination shall be effective without such Notice of Termination.  The Termination Date (as defined below) specified in such Notice of Termination shall be no less than thirty (30) days
from the date the Notice of Termination is given.

 

(h)           Termination Date.  “Termination Date” shall mean the date of the termination of the Executive’s employment with the Company and specifically (i) in the case
of the Executive’s death, his date of death; (ii) in the case of a termination of the Executive’s employment for Cause, the relevant date specified in Section 8(c) of this Agreement; (iii) in the case of a termination of the Executive’s employment for Good Reason, the relevant date specified in Section 8(d) of this Agreement; (iv) in the case of the expiration of the Term of this Agreement in accordance with Section 1, the date of such expiration; and (v) in all other cases, the date specified
in the Notice of Termination.

 

9.             Compensation Upon Termination of Employment.

 

(a)           For Cause; Without Good Reason.  If during the Term of this Agreement, the Executive’s employment under this Agreement is terminated by the Company for Cause or by the
Executive without Good Reason (and other than by reason of the Executive’s death or Disability), the Company’s sole obligation hereunder shall be to pay the Executive the following amounts earned hereunder but not paid as of the Termination Date:

 

(i)           the Executive’s Base Salary through the Termination Date;

 

(ii)           reimbursement of any and all reasonable expenses incurred in connection with the Executive’s duties and responsibilities under this Agreement; and

 

(iii)           other or additional benefits and entitlements in accordance with applicable plans, programs and arrangements of the Company (subsections (i) through (iii) collectively, the “Accrued Compensation”).

 

(b)           Without Cause or for Good Reason.  If the Executive’s employment hereunder is terminated by the Executive for Good Reason or by the Company without Cause, the Company’s
sole obligation hereunder shall be to pay the Executive the following amounts:

 

(i)           the Accrued Compensation;

 

(ii)           a pro-rata portion (based on the days worked by the Executive during the applicable year) of any bonus awarded pursuant to any annual bonus plan maintained by the Company for its senior executives to which the Executive would have been entitled had he not been terminated,
which shall be paid at such time as other participants in the bonus plan are paid their respective bonuses in respect of that fiscal year, but no later than March 15 of the calendar year following the Termination Date;

 

(iii)           The Executive’s Base Salary for the following period (the “Salary Continuation Period”): (A) in the event that Executive’s employment hereunder is terminated prior to the occurrence of a Change in Control, the lesser of (x) eighteen (18) months
following such termination or (y) the remaining duration of the Term; or (B) in the event that Executive’s employment hereunder is terminated on or following the occurrence of a Change in Control, the greater of (x) twenty-four (24) months following such termination or (y) the remaining duration of the Term; in each instance such amount payable in equal installments in accordance with the Company’s payroll practices applicable to its executive officers which payments shall commence on the earlier
of the first payroll date following the 75th day after the Termination Date, or thirty (30) days after the effective date of the Release referenced below in Section 9(g).  The first payment pursuant to this Section 9(b)(iii) shall include those payments that would have previously been paid if the payments described in this Section had begun on the first payroll date following the Termination Date.  This timing of
the commencement of payments pursuant to this Section 9(b)(iii) is subject to Section 11 below; and

 

 

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(iv)           that portion of the Options that is unvested on the Termination Date shall be deemed vested on the Termination Date and such Options shall remain outstanding through the remainder of the original 5 year term.

 

(c)           Disability.  If the Executive’s employment hereunder is terminated by the Company by reason of the Executive’s Disability, the Company’s sole obligation hereunder
shall be to pay the Executive the following amounts:

 

(i)           the Accrued Compensation; and

 

(ii)           any accrued benefits under the Company’s regular and any supplemental long-term disability plan or plans; and

 

(iii)           that portion of the Options that is unvested on the Termination Date shall be deemed vested on the Termination Date and such Options shall remain outstanding through the remainder of the original 5 year term.

 

(d)           Death.  If the Executive’s employment hereunder is terminated due to his death, the Company’s sole obligation hereunder shall be to pay the Accrued Compensation to
the person or persons designated in writing by the Executive to receive such payment, or if no such designation was made, the Executive’s estate.  In addition, that portion of the Options that is unvested on the Termination Date shall be deemed vested on the Termination Date and such Options shall remain outstanding through the remainder of the original 5 year term.

 

(e)           Continuation of Employee Benefits.  Notwithstanding anything to the contrary, in addition to any amounts payable above, the Company shall, during the Salary Continuation Period,
provide to the Executive and his beneficiaries continued participation in all medical, dental, vision, prescription drug, hospitalization by fully subsidizing the cost of all COBRA premiums, and life insurance coverages (to the extent such coverage may be continued under all policies), and in all other employee welfare and pension benefit plans, programs and arrangements in which the Executive was participating immediately prior to the Termination Date (exclusive of participation in any Section 401(k) Plan for
severance benefits). The Executive may continue COBRA coverage at the Executive’s cost for the remaining COBRA period after the Salary Continuation Period. Notwithstanding the foregoing, the Company’s obligation to provide welfare benefits under this Section shall be reduced to the extent that equivalent coverages and benefits are made available under the plans, programs or arrangements of a subsequent employer.

 

(f)           No Mitigation; No Offset.  In the event of any termination of his employment hereunder, the Executive shall not be required to mitigate the amount of any payment provided for
in this Agreement by seeking other employment or otherwise and no such payment shall be offset or reduced by the amount of any compensation provided to the Executive in any subsequent employment, except as provided in Section 9(e) of this Agreement.

 

(g)           Release.  In exchange for the payment by the Company of the amounts contemplated by Section 9(b)(ii) and (iii) of this Agreement and before such amounts shall be deemed payable
to the Executive hereunder, the Executive and the Company each agree to execute and deliver a release with respect to claims for such payment in such form as is reasonably requested by the Company.

 

 

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(h)           Timing of Payments.  Other than the benefits provided for in Section 9(e) above, unless otherwise specifically indicated herein, the payments provided for in this Section 9 shall
be made to the Executive within sixty (60) days of the termination of the Executive’s employment with the Company.

 

(i)            Limitation on Benefits.  Notwithstanding anything to the contrary contained in this Agreement, to the extent that any of the payments and benefits provided for under this Agreement
or any other agreement or arrangement between the Company and the Executive (collectively, the “Payments”) (i) constitute a “parachute payment” within the meaning of Section 280G of the Code and (ii) but for this Section 9(i), would be subject to the excise tax imposed by Section 4999 of the Code, then the Payments shall be payable either (i) in full or (ii) as to such lesser amount which would result in no portion of such Payments being subject to excise tax under Section 4999 of the
Code; whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, results in the Executive’s receipt on an after-tax basis, of the greatest amount of benefits under this Agreement, notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code.  Unless the Executive and the Company otherwise agree in writing, any determination required under this Section shall be
made in writing by the Company’s independent public accountants (the “Accountants”), whose determination shall be conclusive and binding upon the Executive and the Company for all purposes.  For purposes of making the calculations required by this Section, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely in reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code.  The
Company and the Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section.  The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section.  If the limitation set forth in this Section 9(i) is applied to reduce an amount payable to the Executive, and the Internal Revenue Service successfully asserts that, despite
the reduction, the Executive has nonetheless received payments which are in excess of the maximum amount that could have been paid to the Executive without being subjected to any excise tax, then, unless it would be unlawful for the Company to make such a loan or similar extension of credit to the Executive, the Executive may repay such excess amount to the Company as though such amount constitutes a loan to the Executive made at the date of payment of such excess amount, bearing interest at 120% of the applicable
federal rate (as determined under section 1274(d) of the Code in respect of such loan).

 

(j)           Valuation of Non-Competition Obligations.  The Company shall make reasonable efforts to cooperate with the Executive with regard to the value for tax purposes of the Executive’s
non-competition obligations under this Agreement.

 

10.           Employee Covenants.

 

(a)           Unauthorized Disclosure.  The Executive shall not, during the Term of this Agreement and thereafter, make any Unauthorized Disclosure (as defined below).  For purposes
of this Agreement, “Unauthorized Disclosure” shall mean disclosure by the Executive without the prior written consent of the Board to any person, other than an employee of the Company or a person to whom disclosure is reasonably necessary or appropriate in connection with the performance by the Executive of his duties hereunder, of any confidential information relating to the business or prospects of the Company, including, but not limited to, any information with respect to any of the Company’s
customers, products, methods of distribution, strategies, business and marketing plans and business policies and practices, including information disclosed to the Company by others under agreements to hold such information confidential (the “Confidential Information”).  Notwithstanding the foregoing, the Executive may disclose Confidential Information (i) to the extent such disclosure is or may be required by law, but only after providing (A) notice to the Company of any third party’s
request for such information, which notice shall include the Executive’s intent with respect to such request, and (B) to the extent possible under the circumstances, sufficient opportunity for the Company to challenge or limit the scope of the disclosure, or (ii) in confidence to an attorney, accountant or other advisor for the purpose of securing professional advice concerning the Executive’s personal matters, provided that such attorney or other advisor agrees to observe these confidentiality provisions.  Confidential
Information shall not include the use or disclosure by the Executive of any information known generally to the public or known within the Company’s trade or industry (other than as a result of disclosure by the Executive in violation of this Section 10(a)).  This confidentiality covenant has no temporal, geographical or territorial restriction.

 

 

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(b)           Non-Competition.  During the Non-Competition Period (as defined below), the Executive shall not, directly or indirectly, without the prior written consent of the Company, own,
manage, operate, join, control, be employed by, consult with or participate in the ownership, management, operation or control of, or be connected with (as a stockholder, partner, or otherwise) any business competing with, or substantially similar to, the businesses of Company and its present and future subsidiaries, joint ventures, partners or other affiliates (except that affiliates that are in a business unrelated to the Company’s business shall not be included)(the “Empire Companies”), as
such businesses exist within 60 miles of the location in which any such entity conducts, or is actively investigating the possibility of conducting, its businesses as of the beginning of the Non-Competition Period.  Notwithstanding the foregoing, the provisions of this Section 10(b) shall not be deemed to prohibit the Executive’s ownership of up to 2% of the total shares of all classes of stock outstanding of any publicly held company.

 

(c)           Non-Solicitation.  During the period from the termination of the Executive’s employment with the Company through the one year anniversary of the date of termination, the
Executive shall not, directly or indirectly, alone or in conjunction with another person, (i) hire, solicit, retain, compensate or otherwise induce or attempt to induce any individual who is an employee of any of the Empire Companies, to leave the employ of the Empire Companies or in any way interfere with the relationship between any of the Empire Companies and any employee thereof, (ii) hire, engage, send any work to, place orders with, or in any manner be associated with any supplier, contractor, subcontractor
or other business relation of any of the Empire Companies if such action by the Executive would have a material adverse effect on the business, assets or financial condition of any of the Empire Companies, or materially interfere with the relationship between any such person or entity and any of the Empire Companies, or (iii) solicit or accept business from any customer of any of the Empire Companies.  In connection with the foregoing provisions of this Section 10, the Executive represents that his
experience, capabilities and circumstances are such that such provisions will not prevent him from earning a livelihood.  The Executive further agrees that the limitations set forth in this Section 10 (including, without limitation, time and territorial limitations) are reasonable and properly required for the adequate protection of the current and future businesses of the Empire Companies.

 

 

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(d)           Non-Competition Period.  For purposes of this Agreement, the “Non-Competition Period” means the period from the termination of the Executive’s employment with
the Company through (i) in the case of a termination without Cause by the Company, the end of the Salary Continuation Period, (ii) in the case of a voluntary termination by the Executive without Good Reason, one (1) year following the date of such termination (for the avoidance of doubt, if Executive terminates his employment for Good Reason there shall be no Non-Competition Period) and (iii) in the case of a termination by the Company with Cause, for one (1) year following such termination.

 

(e)           Remedies.  The Executive agrees that any breach of the terms of this Section 10 would result in irreparable injury and damage to the Company for which the Company would have
no adequate remedy at law.  The Executive therefore also agrees that in the event of said breach or any threat of such a breach, the Company shall be entitled to seek an immediate injunction and restraining order to prevent such breach or continued breach by the Executive, in addition to any other remedies to which the Company may be entitled at law or in equity.  The Executive and the Company further agree that the provisions of the covenants not to compete and solicit in this Section 10
are reasonable and that the Company would not have entered into this Agreement but for the inclusion of such covenants herein.  Should a court determine, however, that any provision of the covenants is unreasonable, either in period of time, geographical area, or otherwise, the Parties agree that such covenants should be interpreted and enforced to the maximum extent which such court deems reasonable and such determination shall have no effect upon, and shall not impair the enforceability of, any other
provision of this Agreement.

 

11.           Section 409A.  It is the intention of the Parties that this Agreement be exempt from or comply strictly with the provisions of Section 409A of the Code, and Treasury Regulations
and other Internal Revenue Service guidance promulgated thereunder (the “Section 409A Rules”).  Consistent with that intention, all references hereunder to termination of the Executive’s employment with the Company shall mean separation from the service of the service recipient under the 409A Rules.  Further, to the extent the Executive is a specified employee under the 409A Rules, any payments of deferred compensation within the meaning of the 409A Rules will be deferred
and accumulated for a period of six (6) months and one (1) day and will be paid in a lump sum on such date, unless the Executive dies within such period, in which event payment will be made upon his death.  Thereafter, the normal schedule for the remaining payments will commence.  In addition, Executive’s entitlement to the payments of the severance benefits described in Section 9(b)(iii) shall be treated as the entitlement to a series of separate payments for purposes of the Section 409A
Rules.  Accordingly, this Agreement, including, but not limited to, any provisions relating to severance payments, may be amended from time to time as may be necessary or appropriate to comply with the Section 409A Rules.

 

 

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12.           Withholding of Taxes.  The Company may take such actions as are reasonably appropriate or consistent with applicable law and the Plan in connection with any compensation paid
pursuant to this Agreement with respect to the withholding of any taxes (including income or employment taxes) or any other tax matters, including, but not limited to, requiring the Executive to furnish to the Company any applicable withholding taxes prior to the issuance of stock pursuant to an option grant or the vesting of restricted stock.

 

13.           Indemnification; Insurance; Limitation of Liability.

 

(a)           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 (a “Proceeding”), by reason of the fact that he is or was a director,
officer or employee 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, partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, the Executive shall be indemnified and held harmless by the Company to the fullest extent legally permitted or authorized by the Company’s certificate of incorporation, by-laws or resolutions of the Board against all cost, expense, liability
and loss (including, without limitation, attorneys’ fees, judgments, fines, ERISA excise taxes or other liabilities or penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by the Executive in connection therewith, and such indemnification shall continue as to the Executive even if he has ceased to be a director, member, employee or agent of the Company or other entity and shall inure to the benefit of the Executive’s heirs, executors and administrators.  The
Company shall advance to the Executive all costs and expenses incurred by him in connection with a Proceeding within a reasonable time after submission of reasonable documentation of such costs and expenses.  Such request shall include an undertaking by the Executive to repay the amount of such advance if it shall ultimately be determined that he is not entitled by law to be indemnified against such costs and expenses; provided that the amount of such obligation to repay shall be limited to the after-tax
amount of any such advance except to the extent the Executive is able to offset such taxes incurred on the advance by the tax benefit, if any, attributable to a deduction realized by him for the repayment.

 

(b)           Neither the failure of the Company (including its Board, independent legal counsel or stockholders) to have made a determination prior to the commencement of any Proceeding concerning payment of amounts claimed by the Executive under Section 13(a) above that indemnification
of the Executive is proper because he has met the applicable standard of conduct, nor a determination by the Company (including its Board, independent legal counsel or stockholders) that the Executive has not met such applicable standard of conduct, shall create a presumption in any judicial proceeding that the Executive has not met the applicable standard of conduct.

 

(c)           The Company agrees to continue and maintain director’s and officer’s liability insurance policy covering the Executive, until such time as actions against the Executive are no longer permitted by law, with terms and conditions no less favorable than the most
favorable coverage then applying to any other senior level executive officer or director of the Company.

 

 

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14.           Representations.  The Executive represents and warrants that he has the free and unfettered right to enter into this Agreement and to perform his obligations under it and that
he knows of no agreement between him and any other person, firm or organization, or any law or regulation, that would be violated by the performance of his obligations under this Agreement.  The Company represents and warrants that it is duly formed or organized, validly existing and in good standing under the laws of the State of Delaware and is registered or qualified to conduct business in all other jurisdictions in which the failure to be so registered or qualified would adversely affect the ability
of the Company to perform its obligations under this Agreement.  The Company has taken all company action required to execute, deliver and perform this Agreement and to make all of the provisions of this Agreement the valid and enforceable obligations they purport to be and has caused this Agreement to be executed by a duly authorized officer of the Company.  All consents and approvals by any third party required to be obtained by the Company in order for it to be authorized to enter into
and consummate this Agreement have been obtained and no further third party approvals or consents are required to consummate this Agreement.  Execution and delivery of this Agreement and all related documents, and performance of the obligations hereunder by the Company do not conflict with any provision of any law or regulation to which the Company or any of its affiliates are subject, conflict with or result in a breach of or constitute a default under any of the terms, conditions or provisions of
any agreement or instrument to which the Company or any of its affiliates are a party or by which the Company is bound or any order or decree applicable to the Company, or result in the creation or imposition of any lien on any assets or property of the Company, and/or which would materially and adversely affect the ability of the Company to perform its obligations under this Agreement. The Company has obtained all consents, approvals, authorizations or orders of any court or governmental agency or body, if any,
required for the execution, delivery and performance by the Company of this Agreement.

 

15.           Successors and Assigns.

 

(a)           This Agreement shall be binding upon and shall inure to the benefit of the Company, its successors and assigns and the Company shall require any successor or assign to expressly assume and agree to perform this Agreement in the same manner and to the same extent that
the Company would be required to perform it if no such succession or assignment had taken place.  The term “the Company” as used herein shall include any such successors and assigns.  The term “successors” and “assigns” as used herein shall mean a corporation or other entity acquiring or otherwise succeeding to, directly or indirectly, all or substantially all the assets and business of the Company (including this Agreement) whether by operation of law or
otherwise.

 

(b)           Neither this Agreement nor any right or interest hereunder shall be assignable or transferable by the Executive, his beneficiaries or legal representatives, except by will or by the laws of descent and distribution.  This Agreement shall inure to the benefit
of and be enforceable by the Executive’s legal personal representative.

 

16.           Notice.  For the purposes of this Agreement, notices and all other communications provided for in this Agreement (including the Notice of Termination) shall be in writing and
shall be deemed to have been duly given when personally delivered or sent by registered or certified mail, return receipt requested, postage prepaid, or upon receipt if overnight delivery service or facsimile is used, and addressed as follows:

 

 

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To the Executive:

 

Joseph A. D’Amato

PO Box 243

Port Republic, NJ 08241

 

To the Company:

 

Empire Resorts, Inc.

c/o Monticello Casino and Raceway, Route 17B

P.O. Box 5013

Monticello, New York 12701

with a copy to:

 

Robert H. Friedman

Olshan Grundman Frome Rosenzweig & Wolosky LLP

Park Avenue Tower

65 East 55th Street

New York, New York 10022

 

17.           Survivorship.  Except as otherwise set forth in this Agreement, the respective rights and obligations of the Executive and the Company hereunder shall survive any termination
of the Executive’s employment.

 

18.           Waiver.  The waiver by either Party of a breach of any provision of this Agreement shall not be construed as a waiver of any subsequent breach.  The failure of a Party
to insist upon strict adherence to any provision of this Agreement on one or more occasions shall not be considered a waiver or deprive that Party of the right thereafter to insist upon strict adherence to that provision or any other provision of this Agreement.  Any waiver must be in writing and signed by the Executive and the Company.

 

19.           Governing Law.  Subject to Section 12, this Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New York without giving effect
to the conflict of law principles thereof.  Any action, suit or other legal proceeding that is commenced to resolve any matter arising under or relating to any provision of this Agreement shall be submitted to the exclusive jurisdiction of any state or federal court in New York County.

 

20.           Severability.  The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability
of the other provisions hereof.

 

 

11

 

 

21.           Entire Agreement. This Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements,
understandings and arrangements, oral or written, between the Parties with respect to the subject matter hereof.  This Agreement may be executed in one or more counterparts.

 

[Signature Page to Follow]

 

 

12

 

 

[Signature Page to D’Amato Employment Agreement]

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer and the Executive has executed this Agreement as of the day and year first above written.

 

	  	
EMPIRE RESORTS, INC.

	  	  
	  	
By:
	

/s/ Joseph E. Bernstein

	  	  	
Name:
	
Joseph E. Bernstein

	  	  	
Title:
	
Chief Executive Officer

	  	  
	  	  
	  	
EXECUTIVE:

	  	  
	  	

/s/ Joseph A. D’Amato

	  	
JOSEPH A. D’AMATO

 

 

13ex102to8k05558_09112009.htm

Exhibit 10.2

 

CONSULTING AGREEMENT

_________________________________

THIS CONSULTING AGREEMENT (this "Agreement") is made and entered into this 1st day of September, 2009, by and between Empire Resorts, Inc. ("Empire") and Ralph J. Bernstein (the "Consultant").

W I T N E S S E T H:

WHEREAS, the Consultant has specialized and unique skills, knowledge and contacts with respect to the gaming industry and real estate development; and

WHEREAS, Empire desires to retain the Consultant as a consultant in order to assist Empire in expanding Empire’s presence in the gaming industry and casino development.

NOW, THEREFORE, in consideration of the terms and mutual undertakings herein contained, Empire and the Consultant hereby agree as follows:

1.           Consulting Services; Term.  Commencing on September 1, 2009 and ending on August 31, 2010 (such period, the “Term”), the Consultant agrees to make himself available at all times to provide
to Empire the consulting services (the “Consulting Services”) described on Exhibit A hereto.  Consultant shall report to the Chief Executive Officer of Empire or such other person acting in such capacity or such other person as may be designated by the Board of Directors of Empire and, as a precondition to payment of the Consultant’s monthly fee, shall submit a monthly report to the Chief Executive Officer summarizing the Consultant’s activities for the prior month for presentation
to the Empire’s Board of Directors.  Consultant shall not have any responsibility or authority for the supervision or management of the employees of Empire or its subsidiaries.  The Term may be extended by mutual agreement of the parties hereto in accordance with Section 7(c).  Upon the expiration of the Term, (i) Empire will pay (or cause to be paid) all accrued but unpaid Consulting Compensation and expense reimbursements as of the date of such expiration; and (ii) this Agreement
will terminate except that Sections 3, 5, 6 and 7 will continue in full force and effect.

2.           Compensation and Expenses.  As compensation for performing the Consulting Services, Empire will pay (or cause to be paid) to the Consultant the Consulting Compensation set forth on Exhibit A hereto
(the "Consulting Compensation").  Empire will reimburse the Consultant for all reasonable, documented out-of-pocket expenses incurred by the Consultant in performing the Consulting Services that are submitted for reimbursement to the Empire’s Chief Financial Officer, or, in the absence of a full-time Chief Financial Officer, the chairperson on the Compensation Committee of the Board of Directors of Empire, within thirty (30) days of the incurrence of such expense.

 

 

 

	  	  
	
CONSULTING AGREEMENT
	
PAGE 1

 

 

 

 

3.           Confidentiality.  In connection with performing the Consulting Services, the Consultant may come into possession of information regarding Empire and its partners, manager, affiliates and their respective
employees, officers and directors (collectively, "Confidential Information").  During and after the Term, the Consultant agrees to refrain from disclosing any Confidential Information to any person or entity, except to the extent (i) required by subpoena or other legal proceeding (and only after prior notice to Empire); (ii) required in connection with performing the Consulting Services; (iii) Confidential Information is or becomes generally available to the public through no action or omission of the
Consultant; or (iv) Empire has consented in writing to such disclosure.  Upon the expiration of the Term and upon the request of Empire, the Consultant will return to Empire all Confidential Information that has been provided to the Consultant.

4.           Independent Contractor Status.  The relationship of the Consultant to Empire in performing the Consulting Services shall be that of an independent contractor, and nothing contained in this Agreement
shall create or imply a partnership, joint venture, agency or employment relationship between the Consultant and Empire.  Without Empire's written consent, the Consultant, when acting as a consultant under the terms of this Agreement, is not authorized to bind Empire or its subsidiaries or to otherwise make any representation, agreement or commitment on behalf of Empire; provided, however, Consultant shall require not require such written consent with respect to the incurrence of any expenses on behalf
of Empire or its subsidiaries of less than $1,000 or $5,000 in the aggregate.  Empire will not withhold any federal, state or local payroll taxes or any state unemployment or similar taxes in respect of the Consulting Services.  The Consultant will be responsible for the payment of all federal, state or local taxes relating to the Consulting Compensation.

5.           Notices.  All notices, requests, demands and other communications under this Agreement shall be in writing, shall be addressed as follows, and shall be deemed to have been duly given on the date
of delivery:

 

	
  
	
If to Empire:
	
Empire Resorts, Inc.

	
  
	
Monticello Casino and Raceway

Route 17B, P.O. Box 5013

Monticello, NY  12701

Attn:  Joseph Bernstein

	
  
	
If to the Consultant:
	
Ralph Bernstein

	
  
	
235 Baldwin Road

	
  
	
Bedford Corners, NY 10549

 

 

 

	  	  
	
CONSULTING AGREEMENT
	
PAGE 2

 

 

 

 

 

Either party hereto may change its address for purposes of this Section 5 by giving the other party hereto written notice of the new address in the manner set forth above.

6.           Indemnity.  Except to the extent caused by the gross negligence, fraud or intentional misconduct of the Consultant, Empire will indemnify and hold the Consultant harmless against all claims by third
parties arising from the Consultant's provision of the Consulting Services and against all costs, including reasonable attorneys' fees, to defend such claims.  The Consultant shall not settle any matter that would give rise to indemnification obligations of Empire hereunder without Empire 's prior written approval.

7.           Miscellaneous.

 

	
  
	
(a)
	
Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to the choice of law principles thereof.  The parties hereto agree that all actions or proceedings relating to this Agreement shall be brought only in the federal or state courts of New York.

	
  
	
(b)
	
Severability.  The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.

	
  
	
(c)
	
Waivers and Amendments.  This Agreement may be amended, modified, superseded, canceled, renewed or extended, and the terms and conditions hereof may be waived, only by a written instrument executed by all of the parties hereto or, in the case of a waiver, by the party waiving compliance.  The failure of any party hereto at any time
or times to require performance of any provision hereof shall in no manner affect the right at a later time to enforce such provision.  No waiver by any party of the breach of any term or covenant contained in this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such breach, or a waiver of the breach of any other term or covenant contained herein.

	
  
	
(d)
	
Entire Agreement.  This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all other prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof.

 

 

 

	  	  
	
CONSULTING AGREEMENT
	
PAGE 3

 

 

 

 

 

	
  
	
(e)
	
Assignment.  The Consultant may not assign this Agreement, or any right or obligation hereunder, without the prior written consent of Empire.  Any such attempted assignment shall be null and void.

*   *   *   *

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement on the date first above written.

	
Empire Resorts, Inc.

	  
	  
	  
	  
	
By:
	/s/ Joseph E. Bernstein
	  	
Name: Joseph E. Bernstein

	  	
Title: Chief Executive Officer

	  
	  
	
CONSULTANT:

	  
	/s/ Ralph J. Bernstein
	
Name: Ralph J. Bernstein

 

 

 

	  	  
	
CONSULTING AGREEMENT
	
 

 

 

 

 

EXHIBIT A

CONSULTING SERVICES.  The Consulting Services shall include, but not be limited to, the following services that Empire may request from time to time during the Term:

	
  
	
1. Functioning as a strategic advisor to Empire with respect to the raceway business, and Native American and government relations.

	
  
	
2. Advisory services regarding corporate finance, development and master planning of 230 acres for the new Monticello Entertainment City.

	
  
	
3. Pursuing legalization for Sullivan County casinos and/or racetracks.

	
  
	
4. Active involvement in all New York State government relations, including extension of free play beyond 6 months, and preserving dark day money.

	
  
	
5. Continuation of negotiations for a settlement with New York City OTB.

	
  
	
6. New business development, including investigation of relocation of the raceway to a location on Long Island or Staten Island.

	
  
	
7. Strategic advisor and negotiations with potential strategic partners.

	
  
	
8. Develop new deal strategies and expansion opportunities in New York and elsewhere.

CONSULTING COMPENSATION.  In consideration of performing the Consulting Services, Empire will pay (or cause to be paid) to the Consultant the following Consulting Compensation:

	
  
	
1. $12,500 per month, paid in on a monthly basis following submission of monthly summary to the Empire’s Chief Executive Officer to be approved and submitted for payment by the Chief Executive Officer; and

	
  
	
2. Options to purchase 500,000 shares of Empire’s common stock, vesting one year from the date hereof, pursuant to Empire’s 2005 Equity Incentive Plan.

.

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