Document:

Exhibit 10.8

 

ESCROW AGREEMENT

 

This ESCROW AGREEMENT (the “Agreement”) is made
and entered into on June 13, 2008, by and among ISONICS CORPORATION (the “Company”),
YA GLOBAL INVESTMENTS, L.P., (the “Buyer”), YORKVILLE ADVISORS, LLC (“Investment
Manager”), and DAVID GONZALEZ, ESQ., as escrow agent (the “Escrow Agent”).  The Company, the Buyer, and Yorkville may be
referred to individually as a “Party” or collectively as the “Parties.”  All capitalized terms used herein but not
defined herein shall have the meanings ascribed to them in that certain
Securities Purchase Agreement dated June 13, 2008  entered into by and between the
Company and the Buyer (the “Securities Purchase Agreement”).

 

RECITALS

 

WHEREAS, the Company and the Buyer have entered
into a Securities Purchase Agreement, pursuant to which the Company shall issue
and sell to the Buyer, and the Buyer shall purchase certain Securities;

 

WHEREAS, at all times while the Buyer holds any of the Securities,
the Investment Manager shall perform monitoring and managing services for the
Buyer in connection with the Buyer’s purchase and investment in the Securities and
the Buyer’s rights and obligations under the Securities Purchase Agreement and
other related documents and agreements, and during such time, the Investment
Manager shall be paid on a monthly basis, a fee from the Buyer for services
performed;

 

WHEREAS, pursuant to the Securities Purchase Agreement, the Parties
desire that the Monitoring Fees (as defined in the Securities Purchase
Agreement) be deposited into a segregated escrow account to be held by the
Escrow Agent and disbursed to the Investment Manager on a monthly basis as set
forth in this Agreement as it performs its monitoring and managing services for
the Buyer;

 

WHEREAS, Escrow Agent has agreed to accept,
hold, and disburse the Monitoring Fees deposited with it hereunder in
accordance with the terms of this Agreement.

 

AGREEMENT

 

NOW THEREFORE, for and in consideration of the foregoing,
the mutual covenants and agreements hereinafter set forth, and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Parties hereby agree as follows:

 

1.             Appointment of Escrow Agent.  The Company,
the Buyer, and the Investment Manager hereby mutually appoint and designate the
Escrow Agent to receive, hold and release, as escrow agent, the Escrow Funds (as
defined below) and Escrow Agent hereby accepts such appointment and
designation, all in accordance with the terms hereof.

 

2.             Escrow Delivery.

 

2.1. Escrow Funds. 
Escrow Agent is hereby authorized and directed to use its bank account
as an escrow account for purposes of this Agreement.  The Company shall deposit into the Escrow
Account all of the Monitoring Fees in accordance with the terms and conditions
of Section 4(g)(ii) of the Securities Purchase Agreement (such
Monitoring Fee funds actually deposited into the Escrow Account shall be
referred to as the “Escrow Funds”). 
Such Escrow Funds shall be wired to the following account in accordance
with the wire instructions below and shall be held by Escrow Agent and released
only in accordance with the terms of this Agreement.

 

	
  Bank:

  	
   

  	
  Wachovia,
  N.A. of New Jersey

  
	
  Routing
  #:

  	
   

  	
  031201467

  

 

 

	
  Account
  #:

  	
   

  	
  2000014931121

  
	
  Name
  on Account:

  	
   

  	
  David
  Gonzalez Attorney Trust Account

  
	
  Name
  on Sub-Account:

  	
   

  	
  Isonics/Monitoring
  Fee

  

 

3.             Conditions of Escrow.

 

3.1. The Escrow Deposit.  Escrow Agent shall hold the Escrow Funds until
all funds have been disbursed in accordance with this Agreement (the “Term”)
for the benefit of the Buyer. The Escrow Funds shall be deposited into the
Escrow Account by the Company and the Buyer as set forth in the Securities
Purchase Agreement.  Upon each deposit
into the Escrow Account, the Buyer shall provide to the Escrow Agent a
completed Monitoring Fee Schedule in the form attached hereto as Exhibit A
(a “Monitoring Fee Schedule”) with respect to such deposit into escrow
setting forth the date and amount of such deposit and the schedule of
disbursements to be made from escrow.

 

3.2. Release of Escrow
Funds.   The Escrow Agent shall disburse
the Escrow Funds in accordance with the following procedures:

 

(i)            The Escrow Agent shall disburse the
designated portion of the Escrow Funds to the Investment Manager in the amounts
and at the times set forth on the Monitoring Fee Schedules promptly upon
receipt from the Buyer of a signed written instruction directing the Escrow
Agent to make such disbursement.  In
disbursing Escrow Funds, the Escrow Agent is authorized to rely upon such
written instruction from the Buyer and may accept any signatory from the Buyer
that Escrow Agent has on file.

 

(ii)           In the event that the Securities are Fully Retired (as defined in the
Securities Purchase Agreement) prior to the full disbursement of all the Escrow
Funds, the Buyer and the Company shall execute a joint written instruction
directing the Escrow Agent to disburse the remaining Escrow Funds to the
Company, or to such other Person as set forth in such joint written direction,
provided however, the Buyer may instruct, by delivery of a signed written
instruction, which the Buyer, in its sole determination may provide, the Escrow
Agent to disburse all or a portion of the remaining Escrow Funds to the Buyer,
which amount shall be credited to any fees, costs, expenses, or other amounts
owed to the Buyer from the Company pursuant to the Securities, the Securities
Purchase Agreement, or any related documents after the Securities are Fully
Retired, so long as the Buyer first provides the Company with advanced written
notice of such amounts owed to it and provides the Company with five business
days to directly pay such amounts to the Buyer.

 

3.3. Conflict.  If a controversy arises between the Parties concerning
the release of the Escrow Funds hereunder, they shall notify Escrow Agent.  In that event (or, in the absence of such
notification, if in the good faith judgment of Escrow Agent such controversy
exists), Escrow Agent shall not be required to resolve such controversy or take
an action but shall be entitled to await resolution of the controversy by joint
written instructions from the Parties or may immediately return the Escrow
Funds to the respective Parties, in which event Escrow Agent shall have no
further liability hereunder.  If a suit
is commenced against Escrow Agent, it may answer by way of interpleader and
name the Parties as additional parties to such action, and Escrow Agent may
tender the Escrow Funds into such court for determination of the respective
rights, titles and interests of the Parties. 
Upon such tender, Escrow Agent shall be entitled to receive from the
Parties its reasonable attorneys’ fees and expenses incurred in connection with
said interpleader action or in any related action or suit.  If and when Escrow Agent shall so interplead such Parties, or either of them, and deliver the
Escrow Funds to the clerk of such court, all of its duties hereunder shall
cease, and it shall have no further obligation in this regard.

 

 

3.4. Cause of Action.           The Company agrees and acknowledges that in no event shall it have any
cause of action, standing, claim, or any other rights against the Buyer or the
Investment Manager with respect written instructions provided by the Buyer or
disbursements made to the Investment Manager in accordance with Section 3.2.
hereunder.

 

4.             Escrow Agent.

 

4.1. Liability of Escrow
Agent.  The Parties acknowledge,
understand and agree that Escrow Agent has accepted Escrow Agent’s appointment
under this Agreement and shall perform and satisfy Escrow Agent’s duties,
liabilities and obligations under this Agreement only as an accommodation to the
Parties.  The Parties, jointly and
severally, hereby indemnify Escrow Agent and each representative of Escrow
Agent and hereby agree to hold Escrow Agent and each such representative free
and harmless from and to defend and protect Escrow Agent and such
representative against any claim made, asserted or threatened against Escrow
Agent or such representative (including any such claim made, asserted or
threatened by the Parties), and any claim incurred by Escrow Agent or such
representative, excluding, however, any claim arising from the gross
negligence, willful misconduct, criminal conduct or intentionally tortuous
conduct of Escrow Agent or such representative.

 

4.2. Proceeding.  Escrow Agent, in Escrow Agent’s sole
discretion, may commence any judicial proceeding necessary or appropriate to
determining the respective rights of the Parties under this Agreement or to
interpreting or enforcing any term, condition or other provision of this
Agreement.  The Parties shall jointly and
severally be liable for any and all costs and expenses (including attorneys
fees, expert witness fees, accounting fees and related costs) incurred by
Escrow Agent in connection with such proceeding.

 

5.             Termination.  This
Agreement shall be terminated upon the occurrence of any one of the following: (i) the
release of all the Escrow Funds in accordance with the terms and conditions of Section hereof;
or (ii) otherwise by written mutual consent signed by the Parties.

 

6.             Notice.  All notices, demands,
requests, or other communications which may be or are required to be given,
served or sent by any of the Parties or the Escrow Agent to any other party pursuant
to this Agreement shall be in writing and shall be hand delivered (including
delivery by courier), sent by facsimile, sent by a nationally recognized
overnight delivery service, or mailed by first-class, registered or certified
mail, return receipt requested, postage prepaid, addressed to the parties last
known address or such other address as the addressee may indicate by written
notice to the other Parties or the Escrow Agent.  Each notice, demand, request or communication
that is given or made in the manner described above shall be deemed
sufficiently given or made for all purposes at such time as it is delivered to
the addressee (with the return receipt, the delivery receipt or the affidavit
of messenger being deemed conclusive but not exclusive evidence of such
delivery) or at such time as delivery is refused by the addressee upon
presentation.

 

7.             Benefit and Assignment.  None
of the Parties may assign this Agreement without the prior written consent of
all Parties and the Escrow Agent.  This
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors and assigns as permitted hereunder.  No person or entity other than the Parties
and their respective successors and assigns is or shall be entitled to bring
any action to enforce any provision in this Agreement against any of the
Parties, and the covenants and agreements set forth in this Agreement shall be
solely for the benefit of, and shall be enforceable only by, the Parties or
their respective successors and assigns.

 

8.             Entire Agreement; Amendment. This Agreement, along with the Purchase
Agreement and any other agreement executed on the date hereof between the
Parties, contains the entire agreement among the parties with respect to the
subject matter hereof and supersedes all prior oral or written agreements,
commitments or 

 

 

understandings with respect to such matters. 
This Agreement may not be changed orally, but only by an instrument in
writing signed by the Party against whom enforcement of any waiver, change,
modification, extension or discharge is sought.

 

9.             Headings.  The headings of the sections and subsections
contained in this Agreement are inserted for convenience only and do not form a
part or affect the meaning, construction or scope thereof.

 

10.           Governing Law; Venue.  This
Agreement shall be governed and constructed under and in accordance with the
laws of the State of New Jersey (but not including the conflicts of laws and rules thereof).  For purposes of any action or proceeding
involving this Agreement each of the parties to this Agreement expressly submits
to the jurisdiction of the federal and state courts located in the State of New
Jersey and consents to the service of any process or paper by registered mail
or by personal service within or without the State of New Jersey in accordance
with applicable law, provided a reasonable time for appearance is allowed.  Each Party hereby acknowledges that Hudson County,
New Jersey is the proper venue for any action brought hereunder.

 

11.           Signature in Counterparts.  This
Agreement may be executed in separate counterparts, none of which need contain
the signature of all parties, each of which shall be deemed to be an original
and all of which taken together constitute one and the same instrument.  It shall not be necessary in making proof of
this Agreement to produce or account for more than the number of counterparts
containing the respective signatures of, or on behalf of, all of the parties
hereto.

 

12.           Attorney’s Fees. 
Should any action be commenced between any of the Parties concerning the
matters set forth in this Agreement or the right and duties of any other Party
in relation thereto, the prevailing Party in such action shall be entitled, in
addition to such other relief as may be granted, to a reasonable sum as and for
its attorney’s fees and costs; except that Escrow Agent’s attorney’s fees and
costs incurred in connection with disputes arising hereunder between Company,
the Buyer, and the Investment Manager shall be paid by Company, the Buyer and
the Investment Manager as otherwise provided herein.

 

13.           Conflict Waiver.  The
Company hereby acknowledge that the Escrow Agent is
general counsel to the Buyer, a partner of the Investment Manager and counsel
to both the Buyer and the Investment Manager in connection with the
transactions contemplated and referred herein. 
The Company agrees that in the event of any dispute arising in
connection with this Agreement or otherwise in connection with any transaction
or agreement contemplated and referred herein, the Escrow Agent shall be
permitted to continue to represent the Buyer and the Investment Manager and the
Company will not seek to disqualify such counsel.  The Company waives any right to seek the
disqualification of Escrow Agent to act as legal counsel to the Buyer or the
Investment Manager as a result of Escrow Agent’s duties hereunder.  The Buyer and the Investment Manager hereby
consents to Escrow Agent acting as escrow agent pursuant to the terms of this Agreement
and hereby acknowledge that in so acting, Escrow Agent shall be bound to act in
accordance with this Agreement and not in the best interest of the Buyer or the
Investment Manager and may be required to enforce its rights under this
Agreement against the Buyer or the Investment Manager.  The Buyer or the Investment Manager further
acknowledges and agrees that all communication delivered to Escrow Agent in
furtherance of this Agreement or Escrow Agent’s duties hereunder may not be
kept confidential by Escrow Agent and may not be protected by the
attorney-client privilege.  The Buyer or
the Investment Manager hereby waive the conflict of
interest and any potential conflict of interest that may arise as a result of
Escrow Agent’s performance of its duties or exercise of its rights under this
Agreement.

 

[Remainder of Page Intentionally
Left Blank]

 

 

IN
WITNESS WHEREOF, each of the parties has caused this Agreement to be duly
executed and delivered in its name and on its behalf, all as of the date and
year first above written.

 

	
   

  	
  “Company”

  
	
   

  	
   

  
	
   

  	
  ISONICS CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Gregory
  A. Meadows

  
	
   

  	
  Title:

  	
  Vice
  President/Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  “Buyer”

  
	
   

  	
   

  
	
   

  	
  YA GLOBAL INVESTMENTS, L.P.

  
	
   

  	
   

  
	
   

  	
  By:
  Yorkville Advisors, LLC

  
	
   

  	
  Its:
   Investment Manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:
  Mark Angelo

  
	
   

  	
  Title:
  Portfolio Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  “Investment Manager”

  
	
   

  	
   

  
	
   

  	
  YORKVILLE ADVISORS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:
  Mark Angelo

  
	
   

  	
  Title:
  Portfolio Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  “Escrow Agent”

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:  David Gonzalez, Esq.

  
				

 

 

EXHIBIT A

 

MONITORING FEE SCHEDULE

 

To:          Escrow Agent

 

In
accordance with the Agreement, upon each deposit into the Escrow Account, the
Buyer shall provide to the Escrow Agent a completed Monitoring Fee Schedule
with respect to such deposit into escrow setting forth the date and amount of
such deposit and the Schedule of Disbursements to be made to the Investment
Manager from the Escrow Account.  Below
please find the Monitoring Fee Schedule in connection with the Monitoring Fee
to be deposited into the Escrow Account pursuant to a Closing under the Securities
Purchase Agreement:

 

Part I.  Deposits of Monitoring Fee Into
Escrow Account

 

Deposit
Into Escrow Account  $100,000.00                   Date of Deposit  June     ,
2008

 

Part II.  Schedule of Disbursements to Investment
Manager From Escrow Account

 

	
  Disbursement Date

  	
   

  	
  Disbursement Amount

  	
   

  	
  Remaining Escrow

  Funds

  	
   

  
	
  Initial Deposit

  	
   

  	
   

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  July 1, 2008

  	
   

  	
  $

  	
  75,000

  	
   

  	
  $

  	
  25,000

  	
   

  
	
  August 1, 2008

  	
   

  	
  $

  	
  5,000

  	
   

  	
  $

  	
  20,000

  	
   

  
	
  September 1, 2008

  	
   

  	
  $

  	
  5,000

  	
   

  	
  $

  	
  15,000

  	
   

  
	
  October 1, 2008

  	
   

  	
  $

  	
  5,000

  	
   

  	
  $

  	
  10,000

  	
   

  
	
  November 1, 2008

  	
   

  	
  $

  	
  5,000

  	
   

  	
  $

  	
  5,000

  	
   

  
	
  December 1, 2008

  	
   

  	
  $

  	
  5,000

  	
   

  	
  $

  	
  0Exhibit
10.1

 

SEPARATION AGREEMENT AND GENERAL RELEASE

 

THIS
SEPARATION AGREEMENT AND GENERAL RELEASE (this “Agreement”) is made and entered into as of the 16th day of June,
2008, by and between STATION CASINOS, INC.,
a Nevada corporation (the “Company”), and LORENZO J. FERTITTA (the “Executive”).

 

WHEREAS,
the Company and the Executive are parties to an Employment Agreement dated as
of November 7, 2007 (collectively, the “Employment
Agreement”); and

 

WHEREAS,
the Executive desires to resign his employment with the Company; and

 

WHEREAS,
the Company and the Executive have agreed that the Executive will resign his
employment with the Company effective June 30, 2008 (the “Termination Date”).

 

NOW,
THEREFORE, in consideration of the premises and mutual
covenants contained herein and for other good and valuable consideration, the
Company and the Executive (each individually a “Party”
and together the “Parties”) agree
as follows:

 

1.                                       Termination Of Employment.

 

(a)                                  The resignation by the Executive shall
constitute a “Termination by the Executive” pursuant to Section 6.3 of the
Employment Agreement.  The Company hereby
waives the one hundred eighty (180) day notice period for any such termination
by the Executive pursuant to Section 6.3 of the Employment Agreement.

 

(b)                                 Except as otherwise provided in the
following sentence, the Executive shall end his employment and resign all
offices and board memberships with the Company and its subsidiaries and
affiliates effective as of the Termination Date.  Notwithstanding the foregoing, the Executive
shall (i) remain a member of the Board of the Directors of the Company, (ii) remain
as an officer and member of the Board of Managers of Fertitta Colony Partners
LLC, (iii) remain as an officer and member of the Board of Managers of
Fertitta Partners LLC, and (iv) remain as an officer and member of the
Board of Managers of FCP Voteco, LLC.

 

2.                                       Survival of Certain
Employment Agreement Provisions.  The Parties
acknowledge and agree that the provisions of Section 8.2 (“No Mitigation; No
Offset”), Section 9 (“Special Reimbursement”), Section 10 (“Indemnification”)
and Section 11 (“Confidential Information”) of the Employment Agreement
(collectively, the “Surviving Sections”)
shall survive the termination of the Employment Agreement and the termination
of the Executive’s employment with the Company, and shall remain in full force
and effect.

 

3.                                       Payments and Benefits. 
Subject to the Executive’s execution of this Agreement and the General
Release (as defined in Section 4 hereof), the Company shall pay or
provide to the Executive (subject to applicable employment and income tax
withholdings and deductions) the following payments and benefits:

 

 

(a)                                  continued payments of Base Salary (as
defined in the Employment Agreement) through the Termination Date;

 

(b)                                 for so long as the Executive serves as a
member of the Board of Directors of the Company, continuation of the group
medical and dental insurance coverages for the Executive and his eligible
dependents that are substantially comparable to the coverages provided
immediately prior to the Termination Date; provided, however,
that if the Executive enrolls in any medical or dental insurance coverage
provided by a future employer, the Company shall have no further obligations
respect to the continued Company coverages (other than its obligations, if any,
under COBRA);

 

(c)                                  reimbursement for expenses incurred but
not paid prior to the Termination Date; and

 

(d)                                 such rights to other benefits as may be
provided in the applicable plans and programs of the Company, including,
without limitation, the Deferred Compensation Program, according to the terms
and conditions of such plans and programs.

 

4.                                       Release of Claims. 
The Executive shall have no rights under the Employment Agreement after
the Termination Date, except as otherwise provided in Section 2 hereof.  In addition, concurrently with the execution
of this Agreement and as a condition of the Executive’s receipt of the payments
and benefits provided for in Section 3 hereof, the Executive shall execute
the general release and covenant not to sue (the “General
Release”), in favor of the Released Parties (as such term is defined
in the General Release) attached hereto as Exhibit “A.”  Notwithstanding the foregoing, the Executive
expressly reserves, and does not waive, (a) his direct and indirect rights
under that Second Amended and Restated Operating Agreement of Fertitta Colony
Partners LLC, dated as of November 7, 2007, as the same may be amended
from time to time, (b) his direct and indirect rights under that Amended
and Restated Operating Agreement of Fertitta Partners LLC, dated as of November 7,
2007, as the same may be amended from time to time, (c) his direct and
indirect rights under that Amended and Restated Operating Agreement of FCP
Voteco, LLC, dated as of November 7, 2007, as the same may be amended from
time to time, and (d) his direct and indirect rights under that
Equityholders Agreement of Station Casinos, Inc., Fertitta Colony Partners
LLC and Fertitta Partners LLC, dated as of November 7, 2007, as the same
may be amended from time to time.

 

5.                                       Cooperation. 
The Parties agree to cooperate fully with each other in order to achieve
the purposes of this Agreement and to take all actions not specifically
described herein that may be required to carry out the purposes and intent of
this Agreement.

 

6.                                       Notices. 
All notices, demands and requests required or permitted to be given to
either Party under this Agreement shall be in writing and shall be deemed to
have been given when delivered personally or sent by certified or registered
mail, postage prepaid, return receipt requested, duly addressed to the Party
concerned at the address indicated below or to such changed address as such
Party may subsequently give notice of:

 

2

 

	
   

  	
  If to the
  Company:

  	
  Station
  Casinos, Inc.

  
	
   

  	
   

  	
  1505 S. Pavilion
  Center Drive

  
	
   

  	
   

  	
  Las Vegas,
  Nevada 89135

  
	
   

  	
   

  	
  Attention:
  Richard J. Haskins, Esq.

  
	
   

  	
   

  	
   

  
	
   

  	
  If to the
  Executive:

  	
  Lorenzo J.
  Fertitta

  
	
   

  	
   

  	
  1505 S. Pavilion
  Center Drive

  
	
   

  	
   

  	
  Las Vegas,
  Nevada 89135

  

 

7.                                       Entire Agreement. 
This Agreement, including the exhibits hereto, contains the entire
agreement between the Parties concerning the subject matter hereof and
supersedes all prior agreements, understandings, discussions, negotiations and
undertakings, whether written or oral, express or implied, between the Parties
with respect hereto.  No representations,
inducements, promises or agreements not embodied herein shall be of any force
or effect.  Without limiting the
generality of the foregoing, the Executive acknowledges and agrees that neither
the Company nor any of its employees or agents have made any representations to
the Executive concerning the terms or effects of this Agreement other than
those representations expressly set forth herein.

 

8.                                       Assignability. 
Neither Party shall have the right to assign any rights or obligations
under this Agreement without the prior written approval of the other Party
other than an assignment to a successor of the Company, provided that
such successor assumes the liabilities, obligations and duties of the Company
under this Agreement, either contractually or  as a matter of law.  The Parties acknowledge and agree that the
provisions of this Section 8 were negotiated at arms’ length and
that the Executive received separate and adequate consideration in return for
providing the Company the right to assign this Agreement.

 

9.                                       Amendment or Waiver. 
No provision in this Agreement may be amended or waived unless such
amendment or waiver is agreed to in writing, signed by both Parties.  No waiver by one Party of any breach by the
other Party of any condition or provision of this Agreement to be performed by
such other Party shall be deemed a waiver of a similar or dissimilar condition
or provision at the same or any prior or subsequent time.

 

10.                                 Severability. 
In the event that any provision or portion of this Agreement shall be
determined to be invalid or unenforceable for any reason, in whole or in part,
the remaining provisions of this Agreement shall be unaffected thereby and
shall remain in full force and effect to the fullest extent permitted by law.

 

11.                                 Construction. 
The Parties agree that this Agreement is the product of negotiations
between sophisticated parties, both of whom had to opportunity to be
represented by counsel, and each of whom had an opportunity to participate in
and did participate in, the drafting of each provision hereof.  Accordingly, this Agreement shall be
construed as if both Parties prepared this Agreement, and any rules of construction
to the contrary are hereby waived.

 

3

 

12.                                 Governing Law. 
This Agreement shall be governed by and construed and interpreted in
accordance with the laws of the State of Nevada without reference to the
principles of conflict of laws thereof. 
In the event of any dispute or controversy arising out of or relating to
this Agreement, the Parties mutually and irrevocably consent to, and waive any
objection to, the exclusive jurisdiction of any court of competent jurisdiction
in Clark County, Nevada, to resolve such dispute or controversy.

 

13.                                 Headings. 
The headings of the sections and subsections contained in this Agreement
are for convenience only and shall not be deemed to control or affect the meaning
or construction of any provision of this Agreement.

 

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

 

15.                                 Acknowledgement.

 

(a)                                  The Executive acknowledges that he
received a copy of this Agreement prior to its execution and has had a
reasonable amount of time to review and consider this Agreement prior to its
execution.

 

(b)                                 The Executive further acknowledges that
he has had the opportunity to consult with an attorney prior to executing this
Agreement.

 

(c)                                  The Executive enters into this Agreement
having freely and knowingly elected, after due consideration, to execute this
Agreement and to fulfill the promises set forth herein.

 

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

 

	
   

  	
  “COMPANY”

  
	
   

  	
   

  
	
   

  	
  STATION
  CASINOS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J.
  Haskins

  
	
   

  	
  Name:

  	
  Richard J.
  Haskins

  
	
   

  	
  Title:

  	
  Executive Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  “EXECUTIVE”

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
        /s/
  Lorenzo J. Fertitta

  
	
   

  	
  LORENZO
  J. FERTITTA

  

 

 

EXHIBIT A

 

GENERAL RELEASE AND COVENANT NOT TO SUE

 

This
GENERAL RELEASE AND COVENANT NOT TO SUE
(this “General Release”) is executed and
delivered by LORENZO J. FERTITTA (the “Executive”) to STATION CASINOS, INC.,
a Nevada corporation (the “Company”).

 

In
consideration of the agreement by the Company to provide the separation
payments and benefits described in the Separation Agreement and General Release
(the “Separation Agreement”) to which this
General Release is attached, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Executive hereby
agrees as follows:

 

1.                                       RELEASE AND COVENANT.  The Executive, of his own free will, voluntarily
releases and forever discharges the Company, Colony Capital, LLC, Fertitta
Colony Partners LLC and Fertitta Partners LLC and each of their parent
companies, subsidiaries and affiliates, and each of their respective past and
present agents, employees, managers, representatives, officers, directors,
attorneys, accountants, trustees, shareholders, partners, investors, insurers,
heirs, predecessors-in-interest, advisors, successors and assigns
(collectively, the “Released Parties”) from, and covenants not to sue or
proceed against any of the foregoing on the basis of, any and all past or
present causes of action, suits, agreements or other rights or claims which the
Executive, his dependents, relatives, heirs, executors, administrators,
successors and assigns has or have against any of the Released Parties upon or
by reason of any matter arising out of his employment by the Company and the
cessation of said employment, as of the date of execution of this General
Release, and including, but not limited to, any alleged violation of the Civil
Rights Acts of 1964 and 1991, the Equal Pay Act of 1963, the Age Discrimination
in Employment Act of 1967 (including the Older Workers Benefit Protection Act
of 1990), the Rehabilitation Act of 1973, the Family and Medical Leave Act of
1993, the Americans with Disabilities Act of 1990, the Employment Retirement
Income Security Act of 1974, the Nevada Fair Employment Practices Act, the
labor laws of the United States, and Nevada and any other federal, state or
local law, regulation or ordinance, or public policy, contract or tort law,
having any bearing whatsoever on the terms and conditions or cessation of his
employment with the Company.  Notwithstanding
the foregoing, the Executive expressly reserves, and does not waive, (a) his
direct and indirect rights under that Second Amended and Restated Operating
Agreement of Fertitta Colony Partners LLC, dated as of November 7, 2007, as
the same may be amended from time to time, (b) his direct and indirect
rights under that Amended and Restated Operating Agreement of Fertitta Partners
LLC, dated as of November 7, 2007, as the same may be amended from time to
time, (c) his direct and indirect rights under that Amended and Restated
Operating Agreement of FCP Voteco, LLC dated as of November 7, 2007, as
the same may be amended from time to time, (d) his direct and indirect
rights under that Equityholders Agreement of Station Casinos, Inc.,
Fertitta Colony Partners LLC and Fertitta Partners LLC, dated as of November 7,
2007, as the same may be amended from time to time, and (e) his rights
under the Surviving Sections (as defined in the Separation Agreement).

 

 

2.                                       DUE CARE.  The Executive acknowledges that he has
received a copy of this General Release prior to its execution and has been advised
hereby of his opportunity to review and consider this General Release for up to
seven (7) days prior to its execution. 
The Executive further acknowledges that he has been advised hereby to
consult, and has consulted, with an attorney prior to executing this General
Release.  The Executive enters into this
General Release having freely and knowingly elected, after due consideration,
to execute this General Release and to fulfill the promises set forth herein.

 

3.                                       RELIANCE BY THE EXECUTIVE.  The Executive acknowledges that, in his
decision to enter into this General Release, he has not relied on any
representations, promises or arrangement of any kind, including oral statements
by representatives of the Company, except as set forth in this General Release.

 

4.                                       MISCELLANEOUS.  This General Release shall be governed by and
construed and interpreted in accordance with the laws of the State of Nevada
without reference to the principles of conflict of laws thereof.  If any provision of this General Release is
held invalid or unenforceable for any reason, the remaining provisions shall be
construed as if the invalid or unenforceable provision had not been included.

 

This GENERAL RELEASE AND COVENANT NOT TO SUE is executed by the
Executive and delivered to the Company on this 16th day of June, 2008.

 

 

 

 

 

 

	
  STATE OF NEVADA

  	
  )

  
	
   

  	
  ) ss:

  
	
  COUNTY OF CLARK

  	
  )

  

 

On this 16th day of June, 2008, before me, a Notary Public of the State
of Nevada, personally appeared Lorenzo J. Fertitta, to me known and known to me
to be the person described and who executed the foregoing General Release and
did then and there acknowledge to me that he voluntarily executed the same.

 

 

	
   

  	
   

  
	
   

  	
  NOTARY PUBLIC

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00143-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00143-of-00352.parquet"}]]