Document:

Exhibit 10.1

 

First Amendment to
Letter Agreement

 

This First Amendment is entered into this 2nd day of September, 2008,
by and between Bally Gaming, Inc., a Nevada corporation (the “Company”)
and Michael Gavin Isaacs (“Employee”).

 

RECITALS

 

A.                                   The Company and Employee
entered into a letter agreement dated June 19, 2006 (the “Agreement”)
which provides for the employment of Employee by the Company.

 

B.                                     The Company and Employee
desire to amend the Agreement as set forth herein.

 

NOW THEREFORE, the parties hereby agree as
follows:

 

1.                                       The
first two sentences of Section 2(B) of the Agreement are hereby deleted
in their entirety and replaced with the following:

 

Your base salary will be $600,000 a year
beginning on September 1, 2008. Thereafter, your performance and salary
will be reviewed by the CEO and or the Board of Directors as they determine
appropriate.

 

2.                                       The
second and third sentences of Section 3(A) of the Agreement are
hereby deleted in their entirety and replaced with the following:

 

You agree not to compete with the Company for
two years after your employment with the Company terminates if the Company
terminates you for Cause or if you quit for any reason other than in accordance
with Section 2(E)(a) of this letter agreement.

 

If you are terminated without Cause or you
terminate your employment under the circumstances described in Section 2(E)(a) of
this letter agreement, you agree not to compete with the Company for one year
following your termination. 
Notwithstanding anything herein to the contrary, the Company, in its
sole discretion, may extend such one-year period to two years following your
termination by notifying you of such extension at any time prior to the last
day of such one-year period and agreeing in connection with such extension to continue
to pay you Salary Continuation until the end of such two-year period.

 

3.                                       The
first sentence of Section 3(B) of the Agreement is hereby deleted in
its entirety and replaced with the following:

 

You agree that during your employment with
the Company and for two years after your employment ends for any reason, you
shall not, directly or indirectly, (i) aid or endeavor to solicit or
induce any other employee or consultant of the Company to leave the Company to
accept employment of any kind with any other person or entity, or (ii) solicit
the trade or patronage of any of the Company’s customers (which includes
customers of any of the Company’s subsidiaries or 

 

 

affiliates) or of anyone who has traded or
dealt with the Company with respect to any technologies, services, products,
trade secrets, or other matters in which the Company is active.

 

4.                                       All
remaining provisions of the Agreement, other than those expressly modified in
this First Amendment, remain in full force and effect.

 

(signature page follows)

 

 

This First Amendment is effective September 1,
2008 and is dated the date first written above.

 

	
  COMPANY

  	
  EMPLOYEE

  
	
  Bally Gaming, Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
   /s/ Richard Haddrill

  	
   

  	
  By

  	
   /s/ Michael
  Gavin Isaacs

  
	
         Richard
  Haddrill

  	
  Michael Gavin IsaacsEXHIBIT 10.1

 

August 29, 2008

 

SURPLUS NOTE

 

Allstate Life Insurance
Company, a life stock insurance company duly organized and existing under the
laws of the State of Illinois (the “Company”) for value received hereby
promises to pay to Allstate Insurance Company, or its assigns, the principal
sum of $400,000,000.00 (Four Hundred Million Dollars) in cash on August 29,
2028 and to pay interest thereon semi-annually on the first day of April and
October in each year, commencing April 1, 2009, at the rate of 7.50 %
per annum, until the principal hereof is paid, except that the final payment of
any accrued and unpaid interest shall be concurrent with the payment of
principal.  Interest will be computed on
the basis of a 360-day year of twelve 30-day months.  All principal and interest shall be paid at
the principal corporate office of the Company or such other place, which shall
be acceptable to the Company, as the holder hereof shall designate in writing
to the Company, in collected and immediately available funds in lawful money of
the United States of America.  Principal
and interest shall be payable on the terms and conditions set forth below:

 

1.             No payment of
principal or interest shall be permitted on this Surplus Note without the prior
written approval of the Director of Insurance of the State of Illinois (the “Director”)
and shall only be made out of surplus of the Company in excess of the minimum
surplus the company is required to maintain under Section 13 of the
Illinois Insurance Code [215 ILCS 5/13]. 
The Company covenants that it shall use its best efforts to obtain such
approvals on or prior to the date on which such principal or interest shall
become due and payable.  In addition to
and not in lieu of the foregoing, the holder of this Surplus Note shall have
the option of seeking such approvals itself and, in such event, the Company
covenants to cooperate fully with the holder of this Surplus Note in seeking
such approvals.

 

2.             To the extent that
a payment of all or a portion of the principal of this Surplus Note or interest
hereon is prohibited pursuant to the provisions of Paragraph 1 hereof, such
prohibition shall not be considered to be a forgiveness of the indebtedness
hereunder, and interest shall continue to be accrued and paid at the rate provided
herein through the date of payment on any such unpaid principal (but not on
interest the payment of which was prohibited pursuant to the provisions of
Paragraph 1 hereof, during the period of such prohibition), and promptly (and
in no event later than 30 days) after the removal of any such prohibition the
Company shall make payment of all amounts then past due and owing hereunder.

 

3.             The Company
covenants that if:

 

(a)           default is made in the payment of any
installment of interest on this Surplus Note when such interest becomes due and
payable and such default continues for a period of 30 days, other than to the
extent such interest payment is prohibited pursuant to Paragraph 1 hereof, or

 

(b)           default is made in the payment of the
principal of this Surplus Note when such principal becomes due and payable,
other than to the extent that such principal payment is prohibited pursuant to
Paragraph 1 hereof,

 

 

the Company will,
upon demand by the holder of this Surplus Note, and subject to the provisions
of Paragraph 1 hereof, pay to it the whole amount of the principal of this
Surplus Note, plus accrued interest, with interest upon the overdue principal
and, to the extent that payment of such interest shall be legally enforceable,
upon overdue installments of interest (excluding interest payments prohibited
pursuant to Paragraph 1 hereof), at the rate borne by this Surplus Note; and,
in addition thereof, such further amount as shall be sufficient to cover the
costs and expenses of collection, including reasonable attorneys’ fees.

 

4.             In the event of the
liquidation of the Company, the claims under this Surplus Note shall be paid
out of any assets remaining after the payment of all policy obligations and all
other liabilities but before distribution of assets to shareholders; provided,
however, that the claims of the holder of this Surplus Note shall not be
subordinated to the claims of the holder of any other such surplus note.

 

5.             Subject to the
provisions of Paragraph 1 hereof, payments of principal and interest on this
Surplus Note may be repaid or prepaid, in whole at any time or in part from
time to time, without premium or penalty and with interest to the date of
payment only.

 

6.             Except for the
events described in Paragraphs 1 and 4 above, no provision of this Surplus Note
shall alter or impair the obligation of the Company, which is absolute and
unconditional, to pay the principal of and interest on this Surplus Note at the
times, place and rate, and in the coin or currency, herein prescribed.  No provision of this Surplus Note shall
extinguish ultimate liability for the payment of principal and interest
hereunder.

 

7.             The obligation of
the Company to pay this Surplus Note shall not form a part of the Company’s
legal liabilities until authorized for payment by the Director and shall not be
a basis of any set off, but, until authorized for repayment by the Director,
all statements published or filed with the Director by the Company shall show
the amount thereof then remaining unpaid as a special surplus account.  The obligation of the Company under this
Surplus Note may not be offset or be subject to recoupment with respect to any
liability or obligation owed to the Company.

 

8.             Each payment made
hereunder will be credited first to accrued but unpaid interest, if any, and
the balance of such payment will be credited to the principal amount hereof.

 

9.             In the event that
any payment of principal or interest on this surplus note is scheduled to be
made on a day that is not a Business Day, then such payment shall be made on
the next following business Day and no additional interest shall accrue as a
result of payment on such following Business Day.  For the purpose of this Paragraph 9, “Business
Day” shall mean any day that is not a Saturday, Sunday or any other day on
which banking institutions in the state of Illinois are permitted or required
by any applicable law to close.

 

10.           No agreement or
interest securing any obligation of the Company, whether existing on the date
of this Surplus Note or subsequently entered into, shall apply to or secure the
obligation of the Company under this Surplus Note.

 

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11.           In the event the Company consolidates
or merges into another entity or transfers substantially all of its assets to
another entity, the entity into which the Company consolidates or merges or to
which the assets of the Company are transferred must assume the liability of
the Company hereunder.

 

12.           This Surplus Note
shall be construed in accordance with, and governed by, the laws of the State
of Illinois, including the provisions of Section 215 ILCS 5/34.1 of the
Illinois Insurance Code, and applicable regulations issued pursuant thereto.

 

IN WITNESS WHEREOF, the Company has caused this Surplus Note to be
executed in its name and attested to by its authorized officer, and its
corporate seal to be hereunto affixed, all as of the date first written above.

 

	
   

  	
  ALLSTATE LIFE INSURANCE
  COMPANY

  
	
   

  	
   

  
	
  (CORPORATE SEAL)

  	
   

  
	
   

  	
   

  
	
    

  	
  By:

  	
  /s/ John C. Pintozzi

  
	
   

  	
   

  	
  Name:  John C. Pintozzi

  
	
   

  	
   

  	
  Title:  Senior Vice President and Chief Financial
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attest: 

  	
  /s/ Susan L. Lees

  	
   

  
	
   

  	
  Name:  Susan L. Lees

  
	
   

  	
     Senior
  Vice President, Secretary and General Counsel

  
									

 

 

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