Document:

ex101to8k07554_02172010.htm

    Exhibit
10.1

     

    YOUBET.COM,
INC.

     

    RETENTION
PROGRAM

     

    

     

    1.           Effective
Date.  This Retention Program (the “Plan”) of Youbet.com,
Inc. (the “Company”) shall be
effective as of February 17, 2010 (the “Effective Date”) and
shall remain in effect until the Termination Date (as defined in Exhibit A) (the
“Term”).

     

    2.           Participants
Covered.  Each person listed on Exhibit B shall become a
participant in the Plan on the Effective Date (each such person, a “Participant”) and,
except as otherwise determined in writing by the Compensation Committee (the
“Compensation
Committee”) of the Company’s Board of Directors, no person who is not
listed on Exhibit B on the date hereof shall become a Participant in this
Plan.

     

    3.           Retention
Payments.  On the Effective Date, the Company shall establish a
Retention Payment for each Participant, which shall be set forth on Exhibit
B.  A Participant’s Retention Payment shall be a bookkeeping entry
only and no trust, security, escrow, or similar account need be established for
the purpose of paying benefits hereunder.  Each Participant’s
Retention Payment shall be a general obligation of the Company and the claim of
a Participant or beneficiary to a benefit shall at all times be merely the claim
of an unsecured creditor of the Company.

     

    4.           Vesting of Retention
Payment.  A Participant’s right to receive all or a portion of
his/her Retention Payment shall vest and become non-forfeitable as set forth
below.

     

    4.1           Normal
Vesting.  50% of each Participant’s Retention Payment shall
vest on the Closing (as defined in Exhibit A) and the remaining 50% shall vest
on the six-month anniversary of the Closing (each, a “Vesting Date”) if the
Participant is then employed by the Company, any of its direct or indirect
subsidiaries or any affiliate thereof (an “Affiliate”).

     

    4.2           Accelerated
Vesting.  A Participant shall become 100% vested in his/her
Retention Payment immediately upon the termination of the Participant’s
employment with the Company and its Affiliates (i) by the Company or its
Affiliates for any reason other than for Cause (as defined in Exhibit A), (ii)
by the Participant for Good Reason (as defined in Exhibit A) or (iii) due to the
Participant’s death; provided, however, that in the event such termination
occurs prior to the Closing, the Participant’s Retention Payment shall not vest
until the Closing.

     

    5.           Forfeiture of Retention
Payment.  Subject to Section 4.2, above, a Participant shall
forfeit the Retention Payment upon any termination of employment with the
Company and its Affiliates.

     

    6.           Distribution of Vested
Retention Payment.

     

    6.1           General.  The
vested portion of a Participant’s Retention Payment shall be distributed in a
cash lump sum to the Participant (or his/her beneficiaries) within 10 days of
the date the Participant’s right to such portion becomes vested in accordance
with Section 4.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    6.2           Section
409A.  To the extent necessary to avoid imposition on the
Executive of a penalty tax pursuant to Section 409A of the Internal Revenue Code
of 1986, as amended (the “Code”), any
distribution payable as a result of a Participant’s termination of employment
shall be deferred for six months and one day after such termination and shall be
made in accordance with the provisions of Section 6.1.

     

    7.           Miscellaneous.

     

    7.1           Spendthrift
Clause.  No benefit, distribution or payment under the Plan may
be anticipated, assigned (either at law or in equity), alienated or subject to
attachment, garnishment, levy, execution or other legal or equitable process
whether pursuant to a “qualified domestic relations order” as defined in
Section 414(p) of the Code or otherwise.

     

    7.2           Withholding.  Any
amounts payable hereunder shall be reduced by all required withholdings for
state, federal and local employment, income, payroll or other
taxes.

     

    7.3           Beneficiary
Designation.  A Participant may from time to time designate, in
the manner specified by the Company, a beneficiary to receive payment pursuant
to Section 6 in the event of his/her death.  In the event that
there is no properly designated beneficiary living at the time of a
Participant’s death, his/her benefit hereunder shall be paid to his/her
estate.

     

    7.4           Amendment.  On
and after the Effective Date, the Plan may not be amended by the Company in a
manner that adversely affects a Participant without his/her written consent. The
Plan may be amended with the consent of Participants to comply with Section 409A
of the Code so long as such amendments do not materially adversely affect the
rights of any Participant hereunder.

     

    7.5           Governing
Law.  This Plan shall be governed by and construed and enforced
in accordance with the laws of the State of Delaware without giving effect to
the conflict of law principles thereof.  For purposes of jurisdiction
and venue, the Company hereby consents to jurisdiction and venue in any action,
suit or proceeding in any court of competent jurisdiction in any state in which
the Participant resides at the commencement of such action, suit of proceeding
and waives any objection, challenge or dispute as to such jurisdiction or venue
being proper.

     

    7.6           Right of Discharge
Preserved.  Nothing contained in this Plan shall be construed
as a guarantee or right of any Participant to be continued as an employee of the
Company or its Subsidiaries or as a limitation of the right of the Company or
its Subsidiaries to terminate the employment of any Participant.

     

    7.7           Successors and
Assigns.  This Plan 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 (including any purchaser of all or substantially
all the Company’s asset) to expressly assume and agree to maintain this Plan and
to perform under this Plan to the same extent that the Company would be required
to perform under the Plan if no such succession or assignment had taken
place.  The term "Company" as used herein shall include such
successors and assigns.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, the Company has
caused this Plan to be adopted February 17, 2010.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
A

    CERTAIN
DEFINITIONS

    

    A-1           Cause. The Company
and its Subsidiaries may terminate a Participant for Cause in the event that,
after the Effective Date, the Participant:

    

    (i)           Continues
to fail to perform any of the material duties of his/her position with the
Company or its Subsidiaries, including special projects and assignments, after
notice and a reasonable opportunity to correct performance;

    

    (ii)           Breaches
any material provision of the Company’s Code of Conduct; or

    

    (iii)           Is
convicted of, or pleads nolo
contendere to, any felony or misdemeanor which has a material impact on
the Participant’s ability to perform the duties of his/her
position.

    

    A-2           Closing means the
“Closing” as defined in the Agreement and Plan of Merger, dated as of November
11, 2009, by and among Churchill Downs Incorporated, Tomahawk Merger Corp.,
Tomahawk Merger LLC and the Company (the “Merger
Agreement”).

    

    A-3           Good
Reason.  A Participant may terminate his/her employment with
the Company and its Subsidiaries for Good Reason in the event that, on or after
the Closing, (i) the Participant is subjected to a reduction in base salary paid
by the Company to a level that is less than the Participant’s base salary
immediately prior to the Closing or (ii) the Participant is subjected to a
substantial relocation of the Participant’s principal place of employment from
his/her principal place of employment immediately prior to the Closing without
the Participant’s consent.

    

    A-4           Termination Date
means the earlier to occur of (i) the termination of the Merger Agreement in
accordance with its terms or (ii) the date of payment of all payments required
to be made hereunder.

     

    
      
        
        

      

      
        4Exhibit (10.1)

Exhibit (10.1)

SUPPLEMENTAL PLAN

FOR EXECUTIVES COVERED BY MGIC INVESTMENT CORPORATION

KEY EXECUTIVE EMPLOYMENT AND SEVERANCE AGREEMENTS

Effective February 18, 2010

1. Purpose. The purpose of the Supplemental Plan for Executives Covered by MGIC
Investment Corporation Key Executive Employment and Severance Agreements (the Supplemental Plan) is
to extend a portion of the economic security provided to Executives who are parties to MGIC
Investment Corporation Key Executive Employment and Severance Agreements (Company KEESAs) to any
period of their continued employment with the Employer after the Executive has attained his or her
Normal Retirement Date while the Executive remains covered by a Company KEESA.

2. Incorporation by Reference; Defined Terms. The term “Executive” means each Company
executive who is a party to a Company KEESA. The Company KEESA in effect between the Company and
each Executive is incorporated into this Supplemental Plan by this reference and may be referred to
as that Executive’s Company KEESA. Capitalized terms in this Supplemental Plan have the same
meaning, with respect to an individual Executive, assigned to such terms in that Executive’s
Company KEESA, except as specifically provided otherwise herein.

3. Effective Date. This Supplemental Plan is effective February 18, 2010.

4. Participation. Subject to the terms and conditions of the Supplemental Plan, each
Executive covered by a Company KEESA on or after February 18, 2010 is designated an eligible
Participant in the Supplemental Plan. Each eligible Participant shall become an Active Participant
on February 18, 2010, or if later, on the date on which the Executive attains his or her Normal
Retirement Date. On the date an eligible Participant becomes an Active Participant, such Active
Participant’s rights to Supplemental Plan benefits shall be and remain fully and immediately vested
and nonforfeitable while such Active Participant continues to be covered by a Company KEESA.
Within a reasonable time period before or after satisfying the conditions for becoming an Active
Participant, each Eligible Participant shall be requested by the Compensation Committee to execute
a Supplemental Plan Confirmation Agreement in the form of Exhibit A attached hereto and
incorporated by this reference. Affirmative refusal to execute such Confirmation Agreement in
writing delivered to the Committee shall irrevocably terminate an Executive’s status as an Active
Participant.

5. Operations. The Supplemental Plan shall be unlimited in duration and, in the event
of Plan termination, shall remain in effect as long as any Active Participant is covered by a
Company KEESA and/or entitled to Supplemental Plan benefits. The Compensation Committee shall
supervise Supplemental Plan operations and provide any necessary administration of it.

 

 

 

6. Supplemental Plan Benefits.

(a) Subject to the limitation set forth in (b), below, the Supplemental Plan benefit to be
paid to an Executive is a cash payment equal to the amount of the Termination Payment that would have been paid, as provided by currently designated Section 10(b) of the
Executive’s Company KEESA, had the Executive not attained the Executive’s Normal Retirement Date on
or before the date of the Change in Control of the Company. For purposes of determining this
amount, it shall be hypothetically assumed that currently designated subsection 2(i), “Employment
Period,” of the Executive’s Company KEESA was amended to read in its entirety as follows prior to
determination of the amount of the Executive’s Termination Payment:

(i) Employment Period. Subject to Subsection
3(b) hereof, for purposes of this Agreement, the term
“Employment Period” means a period commencing on the date of
a Change in Control of the Company, and ending at 11:59 p.m.
Central Time on the third anniversary of such date.

(b) Under no circumstance shall the amount of Supplemental Plan benefit determined under
paragraph (a), above, equal or exceed the amount that causes the Executive to be in receipt of
Total Payments that constitute an “excess parachute payment” and requires payment to the Executive
of a Gross-Up Payment.

(c) Payment of the Supplemental Plan benefits shall be made as if such amount constituted a
Termination Payment under currently designated Section 10(b)(i) of the Executive’s Company KEESA so
as to comply in all respects with the requirements of Internal Revenue Code Section 409A.

 

2

 

Exhibit A to the Supplemental Plan

SUPPLEMENTAL PLAN CONFIRMATION AGREEMENT

THIS AGREEMENT is made and entered into as of the
 _____ 

day of
 _____ 

, by and between
MGIC Investment Corporation, a Wisconsin corporation (hereinafter referred to as the “Company”),
and the person whose name appears on the signature page hereof (hereinafter referred to as
“Executive”).

WHEREAS, the Executive is employed by the Company and/or a subsidiary of the Company
(hereinafter referred to collectively as the “Employer”) in a key executive capacity and the
Executive and the Company have entered into a Key Executive Employment and Severance Agreement
(KEESA), and remains covered by it or a successor KEESA (the Company KEESA); and

WHEREAS, the Company desires to preserve a portion of the economic security the Company KEESA
provides to its key executives, generally, for the period of the Executive’s continued employment
with the Employer after attainment of the Executive’s Normal Retirement Date, as defined in the
Company KEESA, while the Executive remains covered by such KEESA and continues to provide valuable
service to the Employer.

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements
hereinafter set forth, the parties hereto mutually covenant and agree as follows:

1. Entitlement to Supplemental Plan Benefits. The Company and the Executive agree
that the Executive qualifies as an Active Participant under the Supplemental Plan for Key
Executives Covered by MGIC Investment Corporation Key Executive Employment and Severance Agreements
(the Supplemental Plan) effective as of the date on which the Executive attains the Executive’s
Normal Retirement Date, as defined in the Company KEESA, and is, thereafter, entitled to the
additional economic security made available by the Supplemental Plan.

2. Rules of Construction. This Supplemental Plan Confirmation Agreement shall be
interpreted consistent with its intent and as an integral component of the Executive’s Company
KEESA. The Company KEESA provisions currently designated as Section 18, regarding Successors;
Section 19, regarding Severability; Section 20, regarding Contents of Agreement; Waiver of Rights;
and Amendment; Section 21, regarding Withholding; Section 22 regarding Section 409A; Section 23,
regarding Certain Rules of Construction; Section 24, regarding Governing Law; Resolutions of
Dispute; Section 25, Regarding Notice; Section 26, regarding no Waiver; and Section 27, regarding
Headings shall be reasonably applied with respect to this Agreement as if set forth herein.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
above written.

	 	 	 	 	 	 	 
	MGIC INVESTMENT CORPORATION	 	 	 	EXECUTIVE
	 
	 	 	 	 	 	 
	By:

	 	 	 	 	 	(Seal)
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Its:

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