Document:

Exhibit 10.16

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (“Agreement”) is by and between HARRAH’S OPERATING COMPANY, INC.
(“Company”) and JOHN BOUSHY
(“Executive”). This Agreement supersedes and replaces any prior Employment
Agreement, and shall be effective on January 30, 2006.

 

The Company and Executive agree as follows:

 

1.             Employment. The
Company hereby employs Executive as Executive Vice President, Project
Development, Design and Construction, to lead the Company’s efforts in
developing new concepts for expanding the Company’s offerings and the design
and construction of new facilities, and the redevelopment of existing
facilities to support these concepts, as well as other similar duties.

 

2.             Duties. During
the term of this Agreement (“active employment”), Executive shall devote
substantially all of his working time, energies, and skills to the benefit of
the Company’s business. Executive agrees to serve the Company diligently and to
the best of his ability, and to follow the policies and directions of the
Company.

 

3.             Compensation. Executive’s
compensation and benefits during his active employment shall be as follows:

 

(a)           Base Salary. Beginning
no later than the effective date of this Agreement, the Company shall pay
Executive a base salary (“Base Salary”) of $875,000 per year, which will be
reviewed annually by the Company during the term of this Agreement in
accordance with its compensation practices regarding senior executives. Executive’s
Base Salary shall be paid bi-weekly in accordance with the Company’s normal
payroll schedule, subject to any deferred compensation arrangement separately
agreed upon by the Company and Executive. All payments shall be subject to
Executive’s chosen benefit deductions and the deduction of payroll taxes and
similar assessments as required by law. Executive’s grade will be M108 (the
division president grade level).

 

(b)           Bonus. In
addition to the Base Salary, Executive shall be eligible for an annual bonus in
accordance with the Company’s bonus plan.

 

(c)           Promotional Award.
The Company shall cause its parent company, Harrah’s Entertainment, Inc.
(“HET”) to issue Executive, as further consideration for entering into this
Agreement, including the non-compete and confidentiality provisions, a one time
promotional award of Stock Appreciation Rights (SARS) of Fifty Thousand
(50,000) shares and a Restricted Stock grant of Thirty Thousand (30,000) shares
of HET Stock, both of which shall be issued, subject to the approval, in its
sole discretion, of HET’s Human Resources Committee (“HRC”). The SARS will be
based on a strike price of the average share price of HET’s Stock on the date
the grant is approved by the

 

 

HRC. The SARS shall become
exercisable and the shares of HET Stock issued to Executive under the
Restricted Stock grant will both vest in increments of thirty-three and one
third percent (33 1/3%) on January 1, 2007, January 1, 2008, and January 1,
2009.

 

4.             Insurance and
Benefits. Executive will be eligible to participate in each employee
benefit plan and receive Executive benefits that the Company provides for its
Senior Executives at the Division President level, in accordance with the
applicable plan rules.

 

5.             Term. The term
of this Agreement shall be for three (3) years, beginning on the effective
date, subject to early termination as provided herein.

 

6.             No Cause
Termination/Non-Renewal of Agreement. The Company may terminate Executive’s
active employment at any time without cause upon thirty (30) days’ prior
written notice (“no cause termination”). The Company also, in its sole
discretion, may elect not to extend the term of this Agreement or enter into a
new Agreement upon expiration of this Agreement (“non-renewal of Agreement”). In
the event of such no cause termination or non-renewal of Agreement by the Company,
Executive shall be entitled only to the salary and benefits set forth below
after the last day worked by Executive following termination of the Executive’s
employment with the Company (the “Separation Date”) unless otherwise specified
in this Agreement.

 

	
  Benefits

  	
   

  	
  Benefit Termination Date

  
	
   

  	
   

  	
   

  
	
  Base Salary (rate as of Separation Date)

  	
   

  	
  Eighteen (18) months (78 weeks) (“Salary Continuation Period”) from
  the Separation Date

  
	
   

  	
   

  	
   

  
	
  PTO and Service Credit

  	
   

  	
  Separation Date (accrued PTO will be paid within thirty (30) days of
  Separation Date).

  
	
   

  	
   

  	
   

  
	
  Use of Credit Cards

  	
   

  	
  Separation Date

  
	
   

  	
   

  	
   

  
	
  Bonus – Payment Eligibility

  	
   

  	
  (i) Eligible for prior year bonus if Executive’s employment is
  terminated during payment year but prior to payment; (ii) eligible for
  prorated bonus for current year if in job for more than six (6) months and
  Separation Date occurs after June 30; (iii) not eligible for bonus for year
  following Separation Date.

  
	
   

  	
   

  	
   

  
	
  Insurance, including health, vision, dental
  insurance and contributions to health care 

  	
   

  	
  End of Salary Continuation Period; provided, however, that Executive,
  his spouse and other eligible dependents shall be eligible for the 

  

 

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  spending accounts within Company policy,
  (excluding life insurance)

  	
   

  	
  continuation of health insurance benefits for the Life Coverage
  Period as provided under the provisions of Paragraph 10 below. If the Life
  Coverage Period benefits are not applicable, the eighteen (18)-month COBRA
  rights period for health insurance will commence on the last day of the
  Salary Continuation Period. Harrah’s Benefit Service Center will furnish the
  COBRA information. Executive has thirty-one (31) days from the last day of
  the month in which he is actively at work to convert his life insurance.
  Executive must contact Harrah’s Benefit Service Center to obtain the required
  form to effectuate the conversion of his life insurance.

  
	
   

  	
   

  	
   

  
	
  Retaining
  Existing Stock Options for Vesting and Other Rights

  	
   

  	
  Annual Stock Options
  and/or Stock Appreciation Rights (SARS) continue to vest and can be exercised
  through the end of Salary Continuation Period; provided, however, that all
  unvested portions, if any, of Executive’s 60,000 share-promotional
  Stock-Option grant awarded to Executive as of October 14, 2004, shall become
  fully vested and exercisable on the Separation Date. Exercise of vested
  annual Stock Options/SARS after Salary Continuation Period per plan rules.
  Accelerated vesting of all annual Stock Options/SARS if Change of Control (as
  defined in Paragraph 11 below) occurs during Salary Continuation Period.

  
	
   

  	
   

  	
   

  
	
  Restricted Stock (Non-TARSAP)

  	
   

  	
  Separation Date

  
	
   

  	
   

  	
   

  
	
  Eligibility for New SARS

  	
   

  	
  Separation Date.

  
	
   

  	
   

  	
   

  
	
  TARSAP II

  	
   

  	
  Next potential vesting installment of TARSAP II, after Separation
  Date, if the installment is earned will vest for Executive (all, part, or
  none) at the CEO’s and HRC’s discretion. If a Change in Control (as defined
  in Paragraph 11 below) occurs during Salary Continuation Period, Executive
  will only be entitled to the next potential vesting installment of TARSAP II
  not otherwise earned. Unvested shares at the end of Salary Continuation are
  forfeited. 

  

 

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  Notwithstanding anything to the contrary contained in this Agreement,
  if Executive’s employment ceases for reasons other than For Cause, as set
  forth in Paragraph 8, then Executive will receive the next (final) vesting of
  the TARSAP II shares.

  
	
   

  	
   

  	
   

  
	
  Use of Financial Counseling per Plan
  Provisions

  	
   

  	
  End of Salary Continuation Period. The maximum remaining benefit
  shall be annual benefit remaining as of Separation Date.

  
	
   

  	
   

  	
   

  
	
  Savings and Retirement Plan Deduction
  (Active Participation)

  	
   

  	
  Separation Date.

  
	
   

  	
   

  	
   

  
	
  Employee Supplemental Savings Plan (ESSP)
  (Active Participation)

  	
   

  	
  Separation Date. ESSP distribution date will commence when Salary
  Continuation ends, in accordance with plan and as selected previously by
  Executive.

  

 

7.             Death of Executive.
Upon the death of Executive during his active employment, his salary and all
rights and benefits hereunder will terminate (unless otherwise provided for
herein), and his estate and his beneficiary(ies) will receive the benefits to
which they are entitled under the terms of the Company’s benefit plans and
programs by reason of a participant’s death during employment, including the
applicable rights and benefits under the Company’s Stock and Stock Option plans.
Under the Stock Option Plan, upon his death all unvested portions, if any, of
Executive’s 60,000-share-promotional-Stock-Option grant awarded to Executive as
of October 14, 2004, shall become fully vested and exercisable, and fifty
percent (50%) of all other unvested annual Stock Options/SARS, if any, will
vest and become exercisable, and the other fifty percent (50%) of the unvested
annual Stock Options/SARS will terminate. Upon Executive’s death, fifty percent
(50%) of all shares of Restricted Stock, other than TARSAP II Restricted Stock,
issued to Executive that are then unvested shall immediately become vested in
Executive, and the balance of such unvested shares shall be returned to the
Company. All shares of TARSAP II Restricted Shares that are unvested as of
Executive’s death shall become fully vested as of Executive’s death. All earned
PTO will also be paid to Executive’s estate. The amount of PTO is fixed at
$45,256 minus standard deductions. If Executive dies during the Salary
Continuation Period, all of the remaining salary continuation will be paid in a
lump sum to Executive’s estate.

 

8.             Termination
By Company For Cause. The Company shall have the right to
terminate Executive’s active employment for cause. All salary and benefits
shall cease, except COBRA rights and as otherwise provided in applicable
benefit plans. All earned PTO will be paid to Executive. The amount of PTO is
fixed at $45,256 minus standard deductions. Termination for cause shall be
effective immediately upon notice

 

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sent
or given to Executive. For purposes of this Agreement, the term “Cause” shall
mean:  (i) conviction of any crime that
materially discredits the Company or is materially detrimental to the
reputation or goodwill of the Company; (ii) being found unsuitable for a gaming
license or having a gaming license denied or revoked by any gaming regulatory
authority in the states of Arizona, California, Colorado, Illinois, Indiana,
Iowa, Kansas, Louisiana, Maryland, Mississippi, Missouri, Nevada, New Jersey,
New York, North Carolina; Pennsylvania and Rhode Island, or any other state in
which the Company currently or in the future conducts business; (iii)
commission of any material act of fraud or dishonesty against the Company, or
commission of an immoral or unethical act that materially reflects negatively
on the Company, or engaging in willful misconduct; (iv) material breach of
Executive’s obligations under Paragraph 2 of this Agreement, as so determined
by the HET Board of Directors; and (v) Executive’s (a) willful, knowing and
material violation of, or noncompliance with, any securities laws or stock
exchange listing rules, including, without limitation, the Sarbanes-Oxley Act
of 2002, provided that such violation or noncompliance resulted in material
economic harm to the Company, or (b) a final judicial order or determination
prohibiting Executive from service as an officer pursuant to the Securities and
Exchange Act of 1934 or the rules of the New York Stock Exchange. Executive
shall first be provided with written notice of the claim(s) against him under
the above provisions and given a reasonable opportunity (not to exceed thirty
(30) days) to cure, if possible, and to contest said claim(s) before the HET
Board of Directors.

 

9.             Voluntary
Termination/Notice Period. Executive may terminate this Agreement
voluntarily at any time and for any or no reason during its term upon thirty
(30) days’ prior written notice to the Company, except as specified in this
paragraph. If Executive elects to terminate his employment with the Company in
order to work or act in competition with the Company as described in Paragraph
13(a) of this Agreement, Executive must give the Company six (6) months’ prior
written notice of his intention to do so; provided, however, that even if
Executive elects to terminate his employment with the Company in order to work
or act in competition with the Company, such six (6)-month notice shall not be
required or applicable if Executive’s prospective employment is to be with one
of those companies which satisfies the provisions of Paragraph 13(d) below. The
written notice provided by Executive shall specify the last day to be worked by
Executive (“Separation Date”), which Separation Date must be at least thirty
(30) days or six (6) months (as appropriate) after the date the notice is
received by the Company. Unless otherwise specified herein, or in a writing
executed by both parties, Executive shall not receive any of the benefits
provided in this Agreement after the Separation Date set forth in his written
notice except for benefits that have become fully vested and those that are
available to Executive under Paragraph 10 below (to the extent set forth in
Paragraph 10) and applicable rights and benefits that apply to employees
generally upon termination of employment. Notwithstanding anything to the
contrary contained in this paragraph, all shares of TARSAP II Restricted Shares
that are unvested shall become fully vested as of Executive’s voluntary
termination. This will not apply if the voluntary termination occurs after
Executive has been notified he is being terminated For Cause.

 

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10.           Certain Health
Insurance Benefits. If Executive’s employment terminates for any reason
other than by the Company for “Cause” as described in Paragraph 8 above,
regardless of his age or years of service at such time, Executive and his
then-eligible dependents shall be entitled to participate in the Company’s
group health insurance plan, as amended from time to time by the Company, after
Executive’s Separation Date or the end of the Salary Continuation Period, as
applicable, for the remainder of Executive’s life and the remainder of
Executive’s spouse’s life, if Executive is married and his spouse should
survive Executive at his death; provided further, however, that if Executive
should die leaving eligible dependents as survivors, such dependents shall be
entitled to participate in the Company’s group health plan until they reach the
age upon which they would no longer be so eligible to participate if Executive
were still living and participating in the group health plan (the Executive’s,
spouse’s and eligible dependents’ applicable coverage period, the “Life
Coverage Period”). During the Life Coverage Period, Executive (or Executive’s
spouse or other surviving dependents, as applicable) shall pay twenty percent
(20%) of the then prevailing health insurance premium (revised annually) on an
after-tax basis each quarter, and the Company shall pay eighty percent (80%) of
said premium on an after-tax basis, which contribution will be imputed income
to Executive, or Executive’s surviving spouse or other dependents, as
applicable. As soon after the Separation Date as Executive becomes eligible for
Medicare coverage, the Company’s group health insurance plan shall become
secondary to Medicare.

 

Notwithstanding the forgoing provisions that provide that Executive and
his dependents shall be entitled to participate in the Company’s group health
insurance plan, in the event that the terms of the Company’s group health
insurance plan should at any time not permit coverage of Executive and his dependents
under the plan as contemplated above, the Company will, during the Life
Coverage Period, arrange for an individual health insurance policy with
identical or better coverage to be provided to Executive and his dependents at
no greater out-of-pocket cost and expense to Executive than that contemplated
above. And, if the Company is unable to secure an individual insurance policy
for Executive and his dependents, the Company shall, during the Life Coverage
Period, provide health care benefits to Executive and his dependents on a
self-insured basis. In the event that the Company provides such health care
benefits on a self-insured basis, Executive’s (or his spouse’s/dependents’)
cost for such insurance coverage shall be calculated in accordance with the formula
provided above as if Executive and his dependents were insured under the
Company’s group health insurance plan.

 

If Executive engages in any of the prohibited activities described in
Paragraphs 13(a)(i) and (ii) below (except as permitted under Paragraph 13(d)
below), during the Life Coverage Period, the entitlement of Executive and his
then-eligible dependents to participate in the Company’s group health insurance
plan shall terminate automatically, without any further action or notice by
either party, subject to applicable COBRA rights, which shall commence upon
such automatic termination. If Executive becomes employed during the Life
Coverage Period by any company (including any company in the race track, casino
or casino hotel/casino resort business that pursuant to the

 

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provisions of Paragraph 13(d)
below is excluded from the provisions of Paragraph 13(a) of this Agreement)
that does not compete with the Company, or any of its subsidiaries, the Company’s
group health insurance plan shall become secondary to any primary health
insurance plan or coverage made available to Executive by that company, if any,
as long as Executive is employed by such company.

 

Executive also shall receive the benefits and be bound by the
provisions of this Paragraph 10 if a Change in Control, as defined in
Executive’s Severance Agreement, dated as of January 1, 2003, with Harrah’s
Entertainment, Inc. (the “Severance Agreement”), occurs during Executive’s
active employment with the Company and if the Severance Agreement is in force
when the Change of Control occurs.

 

If there exists a dispute between the Company and Executive relating to
the parties’ rights and obligations under Section 10, and the dispute involves
the use of attorneys on the part of the Company or Executive, the prevailing
party in such dispute shall be entitled to be reimbursed by the other party for
any attorneys’ fees incurred in resolving such dispute. If there is no
prevailing party, each party shall bear his own expenses.

 

11.           Change in Control.
If a Change in Control, as defined in Executive’s Severance Agreement, occurs
during Executive’s active employment, and if the Severance Agreement is in
force when the Change in Control occurs, then the Severance Agreement
supersedes and replaces this Agreement, except Paragraphs 10, 12, 13 (to the
extent provided in Paragraph 13) and 14. If, prior to a Change in Control (as
defined above), Executive’s active employment has been terminated for any
reason by either party or this Agreement is not renewed by the Company, then
Executive’s Severance Agreement terminates automatically upon Executive’s
Separation Date.

 

12.           Disability. If
Executive becomes disabled (as defined below) prior to the termination of his
active employment or the non-renewal of this Agreement, he will be entitled to
apply at his option for the Company’s long-term disability benefits. If he is
accepted for such benefits, then the terms and provisions of the Company’s
benefit plans and the programs (including the Company’s Stock Option, SARS and
Restricted Stock Plans) that are applicable in the event of such disability of
an employee shall apply in lieu of the salary and benefits under this
Agreement, except that he will be entitled to the lifetime group insurance
benefits described in Paragraph 10. If Executive is disabled so that he cannot
perform his duties (as reasonably determined by the HRC), then the Company may
terminate his duties under this Agreement. For purposes of this Agreement,
disability will be the inability of Executive, with or without reasonable
accommodation, to perform the essential functions of the job. In such event, he
will receive eighteen (18) months salary continuation (offset by any long term
disability benefits to which he is entitled), together with all other benefits,
and during such period of salary continuation any Stock Options/SARS and
Restricted Stock grants then in existence will continue in force for vesting
purposes. Executive, if disabled, shall also be eligible for lifetime health
benefits provided under Paragraph 10 as if Executive’s

 

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employment with the Company
were terminated by the Company without cause. However, during such period of
salary continuation for disability, Executive will not be eligible to
participate in the annual bonus plan, nor will he be eligible to receive SARS
or Restricted Stock grants or any other long-term incentive awards except to
the extent approved by the HRC. After the eighteen (18) months of salary
continuation has expired, per plan documents, fifty percent (50%) of any
remaining unvested annual options/SARS and any remaining unvested Restricted
Stock grants, if any, will vest and the other fifty percent (50%) of the
unvested annual options/SARS and Restricted Stock grants, if any, will
terminate. All PTO will also be paid out. The amount of PTO is fixed at $45,256
minus standard deductions. The payment of PTO will also survive the occurrence
of a Change in Control and be paid out pursuant to its terms.

 

If Executive becomes disabled during the Salary Continuation Period, he
will be entitled only to the salary and benefits described in Paragraphs 6 and
10 above, for the periods set forth in those respective Paragraphs.

 

Executive shall also receive the benefits and be bound by the
provisions of this Paragraph 12 if a Change in Control, as defined in
Executive’s Severance Agreement, occurs during Executive’s active employment
and if the Severance Agreement is in force when the Change in Control occurs.

 

13.           Non-Competition.

 

(a)           Non-Competition. During Executive’s active employment, and
during the Salary Continuation Period described in Paragraph 6 above,
Executive:

 

(i)            shall not engage in
any activity, including development activity, whether as employer, proprietor,
partner, stockholder (other than the holder of less than five percent (5%) of
the stock of a corporation, the securities of which are traded on a national
securities exchange or in the over-the-counter market), director, officer,
employee, consultant or otherwise, in competition with (x) the casino,
casino/hotel and/or casino/resort businesses conducted at the date hereof by
the Company or any subsidiary or affiliate (“Company” for purposes of this
Paragraph 13) or (y) any casino, casino/hotel and/or casino/resort business in
which the Company is substantially engaged at any time during the active
employment period;

 

(ii)           shall not solicit, in
competition with the Company, any person who is a customer of the businesses
conducted by the Company at the date hereof or of any business in which the
Company is substantially engaged at any time during the term of this Agreement.

 

(b)           Scope of Covenants;
Remedies. The following provisions shall apply to the covenants of
Executive contained in this Paragraph 13:

 

(i)            the covenants
contained in Paragraphs (i) and (ii) of Paragraph 13(a) shall apply within the
United States, Canada and Mexico, plus any

 

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territories in which Company is
actively engaged in the conduct of business while Executive is employed under
this Agreement, including, without limitation, the territories in which
customers are then being solicited;

 

(ii)           without limiting the
right of the Company to pursue all other legal and equitable remedies available
for violation by Executive of the covenants contained in this Paragraph 13, it
is expressly agreed by Executive and the Company that such other remedies
cannot fully compensate the Company for any such violation and that the Company
shall be entitled to injunctive relief to prevent any such violation or any
continuing violation thereof;

 

(iii)          each party
intends and agrees that if, in any action before any court or agency legally
empowered to enforce the covenants contained in this Paragraph 13, any term,
restriction, covenant or promise contained therein is found to be unreasonable
and accordingly unenforceable, then such term, restriction, covenant or promise
shall be deemed modified to the extent necessary to make it enforceable by such
court or agency.

 

(c)           Executive
shall also be bound by the provisions of this Paragraph 13 if (i) a Change in
Control, as defined in Executive’s Severance Agreement, occurs during
Executive’s active employment, (ii) the Severance Agreement is in full force
and effect when the Change in Control occurs and (iii) Executive receives the
payments and benefits provided in Section 4 of the Severance Agreement, in
which events this Paragraph 13 will supersede any non-compete provision in
Executive’s Severance Agreement.

 

(d)           Notwithstanding
anything to the contrary set forth above, Executive shall not be prohibited
from working for a company with business interests or operations in the race
track, casino, or casino hotel/casino resort industries whose annual gross
revenues, at the time Executive’s employment with such entity is to begin, does
not exceed twenty-five percent (25%) of the gross revenues of Harrah’s
Entertainment, Inc.

 

14.           Confidential
Information.

 

(a)           Executive’s position
with the Company will result or has resulted in his exposure and access to
confidential and proprietary information which he did not have access to prior
to holding the position, which information is of great value to the Company and
the disclosure of which by him, directly or indirectly, would be irreparably
injurious and detrimental to the Company. During his term of employment and
without limitation thereafter, Executive agrees to use his best efforts and to
observe the utmost diligence to guard and protect all confidential or
proprietary information relating to the Company from disclosure to third
parties. Executive shall not at any time during and after his Separation Date,
make available, either directly or indirectly, to any competitor or potential
competitor of the Company or any of its subsidiaries, or their affiliates or
divulge, disclose, communicate to any firm, corporation or other business
entity in any manner whatsoever, any confidential or proprietary information
covered or

 

9

 

contemplated by this Agreement,
unless expressly authorized to do so by the Company in writing. Executive is
not prohibited from taking with him the general experience, knowledge, memory
and skill acquired while employed by the Company, and using it in the future.

 

(b)           For the purpose of this
Agreement, “Confidential Information” shall mean all information of the
Company, its subsidiaries and affiliates, relating to or useful in connection
with the business of the Company, its subsidiaries, affiliates, whether or not
a “trade secret” within the meaning of applicable law, that is not generally
known to the general public or to the Company’s competitors, and which has been
or is from time to time disclosed to or developed by Executive as a result of
his employment with the Company. Confidential Information includes, but is not
limited to the Company’s product development and marketing programs, data,
future plans, formula, food and beverage procedures, recipes, finances,
financial management systems, player identification systems (Total Rewards
and/or Total Rewards 2), pricing systems, client and customer lists,
organizational charts, salary and benefit programs, training programs, computer
software, business records, files, drawings, prints, prototyping models,
letters, notes, notebooks, reports, and copies thereof, whether prepared by him
or others, and any other Company information or documents which Executive is
told or reasonably ought to know that the Company regards as confidential. Notwithstanding
the above, Confidential Information will not include:  (1) information to which Executive had
knowledge from a source outside the Company, including previous employment,
prior to a subsequent disclosure by the Company; (2) information that is or
becomes known or available to the public at large or to the Company’s
competitors other than through the Executive or with the assistance of the
Executive; and (3) information that the Company has made a conscious decision
to make public.

 

(c)           Executive agrees that
upon separation of employment for any reason whatsoever, he shall promptly
deliver to the Company all Confidential Information, including but not limited
to, documents, reports, correspondence, computer printouts, work papers, files,
computer lists, telephone and address books, rolodex cards, computer tapes,
disks, and any and all records in his possession (and all copies thereof)
containing any such Confidential Information created in whole or in part by
Executive within the scope of his employment.

 

(d)           Executive has signed a
non-disclosure or confidentiality agreement. Such an agreement shall also
remain in full force and effect, provided that, in the event of any
conflict between any such agreement(s) and this Agreement, this Agreement shall
control.

 

(e)           This Paragraph 14 shall
supersede any confidentiality provision contained in Executive’s Severance
Agreement.

 

15.           Injunctive
Relief. Executive acknowledges and agrees that the terms provided
in Paragraphs 13 and 14 are the minimum necessary to protect the Company, its
affiliates and subsidiaries, its successors and assigns in the use and
enjoyment of

 

10

 

the
Confidential Information and the good will of the business of the Company. Executive
further agrees that damages cannot fully and adequately compensate the Company
in the event of a breach or violation of the restrictive covenants
(Confidential Information and Non-Competition) and that without limiting the
right of the Company to pursue all other legal and equitable remedies available
to it, that the Company shall be entitled to seek injunctive relief, including
but not limited to a temporary restraining order, temporary injunction and
permanent injunction, to prevent any such violations or any continuation of
such violations for the protection of the Company. The granting of injunctive
relief will not act as a waiver by the Company to pursue any and all additional
remedies.

 

16.           Post Employment
Cooperation. Upon the termination of his active employment, Executive will
cooperate with, and provide information to, the Company in assuring an orderly
transition of all matters being handled by him. Upon the Company providing
reasonable notice to him, he will also appear as a witness at the Company’s
request and/or assist the Company in any litigation, bankruptcy or similar
matter in which the Company or any affiliate thereof is a party; provided
that the Company will defray any approved out-of-pocket expenses incurred by
him in connection with any such appearance and that, if Executive is no longer
receiving salary compensation from the Company, the Company will compensate him
for all time spent, at either his then current compensation rate or his salary
rate as of the Separation Date, whichever is higher. The Company agrees further
to indemnify him as prescribed in his Indemnification Agreement and Article
TENTH of the Certificate of Incorporation of Harrah’s Entertainment, Inc.

 

17.           Release. Upon
the termination of Executive’s active employment, and in consideration of the
receipt of the salary and benefits described in this Agreement, except for
claims arising from the covenants, agreements, and undertakings of the Company
as set forth herein and except as prohibited by statutory language, Executive
will be required to sign an agreement that forever and unconditionally waives,
and releases Harrah’s Entertainment, Inc., Harrah’s Operating Company, Inc.,
their subsidiaries and affiliates, and their officers, directors, agents,
benefit plan trustees, and employees (“Released Parties”) from any and all
claims, whether known or unknown, and regardless of type, cause or nature,
including but not limited to claims arising under all salary, vacation,
insurance, bonus, Stock, and all other benefit plans, and all state and federal
anti-discrimination, civil rights and human rights laws, ordinances and
statutes, including Title VII of the Civil Rights Act of 1964 and the Age
Discrimination in Employment Act, concerning his employment with Harrah’s
Operating Company, Inc., its subsidiaries and affiliates, and the cessation of
that employment. The release does not waive his indemnification rights
described in the Indemnification Agreement between Executive and the Company,
dated July 30, 1993, applicable to all senior executives; nor does it or will
it release Company from its continuing obligations to Executive under this
Agreement, including the Company’s obligations under Paragraph 10 above to
provide Executive and his dependents with health insurance coverage during the
Life Coverage Period (to the extent set forth in Paragraph 10).

 

11

 

18.           General Provisions.

 

Notices. Any notice
to be given hereunder by either party to the other may be effected by personal
delivery, in writing, or by mail, registered or certified, postage prepaid with
return receipt requested. Mailed notices shall be addressed to the parties at
the addresses set forth on Schedule 1 hereto, but each party may change his or
its address by written notice in accordance with this Paragraph 18. Notices
shall be deemed communicated as of the actual receipt or refusal of receipt.

 

19.           Governing Law. This
Agreement shall be governed by the laws of the State of Nevada as to all
matters, including but not limited to matters of validity, construction, effect
and performance.

 

20.           Jurisdiction. Any
judicial proceeding seeking to enforce any provision of, or based on any right
arising out of, this Agreement or any agreement identified herein may be
brought only in state or federal courts of the State of Nevada, and by the
execution and delivery of this Agreement, each of the parties hereto accepts
for themselves the exclusive jurisdiction of the aforesaid courts and
irrevocably consents to the jurisdiction of such courts (and the appropriate
appellate courts) in any such proceedings, waives any objection to venue laid
therein and agrees to be bound by the judgment rendered thereby in connection
with this Agreement or any agreement identified herein.

 

21.           No Conflicting
Agreement. By signing this Agreement, Executive warrants that he is not a
party to any restrictive covenant, agreement or contract which limits the
performance of his duties and responsibilities under this Agreement or under
which such performance would constitute a breach.

 

22.           Headings. The
paragraph and subparagraph headings are for convenience or reference only and
shall not define or limit the provisions hereof.

 

23.           Amendments. Any
amendments to this Agreement must be in writing and signed by both parties.

 

24.           Binding Agreement.
This Agreement is binding on the parties and their heirs, successors and
assigns.

 

25.           Survival of
Provisions. The provisions of this Agreement shall survive the termination
of Executive’s employment with the Company if so provided herein and if
necessary or desirable fully to accomplish the purposes of such provisions,
including without limitation the rights and obligations of Executive under
Paragraphs 6, 7, 10, 13, 14, 15 and 16 hereof.

 

26.           This entire
Agreement is subject to the HRC approving the provisions of this Agreement.

 

12

 

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

 

 

	
  Executive

  	
   

  	
  Harrah’s Operating Company, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  John Boushy

  	
   

  	
  Gary Loveman

  
	
   

  	
   

  	
  Chairman, President and

  
	
   

  	
   

  	
  Chief Executive Officer

  
					

 

 

Guarantee of Performance and Payment by
Harrah’s Entertainment, Inc.

 

For good and valuable consideration, the receipt of which is hereby
acknowledged, and in order to induce Executive to enter into the foregoing
Employment Agreement, Harrah’s Entertainment, Inc., parent company of Harrah’s
Operating Company, Inc., hereby guarantees the performance of Harrah’s
Operating Company, Inc., under the Employment Agreement and Harrah’s
Entertainment, Inc., hereby guarantees all payments to Executive under the
Employment Agreement.

 

	
   

  	
   

  	
  Harrah’s Entertainment, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Gary Loveman

  
	
   

  	
   

  	
  Chairman, President and

  
	
   

  	
   

  	
  Chief Executive Officer

  
					

 

13Exhibit 10.1

AMENDMENT OF EMPLOYMENT AGREEMENT

THIS AMENDMENT OF AGREEMENT is made as of the 8th day of May, 2006.

BETWEEN:

(1)                                                                       Ness Technologies, Inc.

a Delaware Corporation

of  Ness Tower, Atidim, Israel

Israel (the “Company”)

(2)                                                                       Mr. Aharon Fogel

Israeli I.D. 10176485

(the “Executive”)

WHEREAS, the Company and
the Executive have previously entered into an Employment Agreement dated as of August 1,
1999 as amended on May 31, 2001 (the “Agreement”), setting forth the terms
and conditions of the employment relationship of the Executive with the
Company;

WHEREAS, the Company and
the Executive desire to amend the provisions of the Agreement in the manner
hereinafter appearing;

NOW, THEREFORE, in consideration of the
premises, and intending to be legally bound, the parties hereto hereby agree as
follows:

1.                                       In
section 2 of the Agreement (automatic extension of the term) the words “three (3) months”
shall be replaced by the words: “twelve (12) months”.

2.                                       In
section 6 (b) (iv) of the Agreement (advance notice period) the words
“six (6) months” shall be replaced by the words: “twelve (12) months”.

3.                                       Except
as set forth in Sections 1 and 2 hereof, the terms, conditions and agreements
set forth in the Agreement are hereby ratified and confirmed and shall continue
in full force and effect.

IN
WITNESS WHEREOF, the parties have executed this agreement on
the date first above written.

Ness
Technologies, Inc.

	
  DATE:

  	
  May 8, 2006

  	
   

  	
  BY:

  	
  /s/ RAVIV ZOLLER

  	
   

  
	
   

  	
   

  	
  Raviv Zoller

  	
   

  
	
   

  	
   

  	
  Title:
  CEO & President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BY:

  	
  /s/ YTZHAK EDELMAN

  	
   

  
	
   

  	
   

  	
  Ytzhak Edelman

  	
   

  
	
   

  	
   

  	
  Title:
  CFO & Deputy CEO

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  DATE:

  	
  May 8, 2006

  	
   

  	
   

  	
  /s/ AHARON FOGEL

  	
   

  
	
   

  	
   

  	
  Aharon Fogel

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