Document:

Exhibit
10.1

AVENTINE RENEWABLE
ENERGY HOLDINGS, INC.

2003 STOCK INCENTIVE PLAN

(Amended and Restated as of April 16, 2007)

 

ARTICLE
1

PURPOSE

 

Aventine Renewable
Energy Holdings, Inc. (the “Company”)
established the Aventine Renewable Energy Holdings, Inc. 2003 Stock Option Plan
effective May 30, 2003, as amended September 6, 2005, was further amended and
renamed the Aventine Renewable Energy Holdings, Inc. 2003 Stock Incentive Plan,
as of December 12, 2005 (as so amended and restated, the “Prior Plan”)
and was further amended and restated as of March 22, and April 16, 2007 (as
amended and restated as of April 16, 2007, the “Plan”).  The purposes of the Plan are to advance the
interests of the Company and its stockholders by providing a means by which the
Company and its Subsidiaries can attract, retain and motivate selected
directors, officers, other key employees and consultants and provide such
personnel with an opportunity to participate in the increased value of the
Company which their effort, initiative and skill have helped produce.

 

ARTICLE
2

DEFINITIONS

 

“Affiliate” of any particular Person means any other Person
controlling, controlled by or under common control with such particular Person
where “control” means the possession, directly
or indirectly, of the power to direct the management and policies of a Person
whether through the ownership of voting securities, by contract or otherwise.

 

“Award” means any grant of an Option, Stock Appreciation
Right, Restricted Stock, Restricted Stock Unit, Performance Share, Performance
Unit or other equity-based award under the Plan.

 

“Award Agreement” means any written agreement, contract or
other instrument or document evidencing any Award, which may, but need not (as
determined by the Committee) be required to be executed or acknowledged by a
Participant as a condition precedent to receiving an Award or the benefits
under an Award.

 

“Board” means the Board of Directors of the Company.

 

“Cause” means, with respect to any Participant, that such
Participant (i) is convicted of or enters a plea of guilty or nolo contendere to a felony, or to a crime or offense
involving the property of the Company or any of its Subsidiaries, (ii) commits
any act involving dishonesty, fraud or disloyalty, or breach of his or her
fiduciary duty to the Company or any of its Subsidiaries, which in any such
case is of material detriment to the business, condition (financial or
otherwise), reputation, character or standing of the Company or any of its
Subsidiaries, (iii) engages in gross negligence or willful 

misconduct with respect to his or her duties on behalf of the Company
or any of its Subsidiaries, or (iv) breaches any of the covenants contained in
the Award Agreement.

 

“Code” means the Internal Revenue Code of 1986, as amended.

 

“Committee” means either the Board or the Compensation
Committee of the Board, as duly appointed from time to time by the Board.

 

“Covered Employee” means a “covered employee” within the
meaning of Section 162(m)(3) of the Code or any successor provision thereto.

 

“Disability” means, with respect to any Participant, (i) any
permanent physical or mental incapacity or disability rendering such
Participant unable or unfit to perform effectively the duties and obligations
under his or her employment, directorship or other consulting relationship with
the Company or any of its Subsidiaries, as applicable, or (ii) any illness,
accident, injury, physical or mental incapacity or other disability, where such
condition has rendered such Participant unable or unfit to perform effectively
the duties and obligations under his or her employment, directorship or other
consulting relationship with the Company or any of its Subsidiaries, as
applicable for a period of at least ninety consecutive days or four months in
any twelve-month period (in either case, as determined in the good faith
judgment of the Committee).

 

“Dividend Equivalent Rights” means a right, granted under
this Plan, to receive cash, Shares, other Awards or other property equal in
value to all or a specified portion of dividends paid with respect to a
specified number of Shares.

 

“Eligible Individual” means any officer, director or employee
of, or consultant to, the Company or a Subsidiary and includes any holders of
Substitute Awards (whether or not employed by the Company or a Subsidiary).

 

“Ending Value” has the meaning set forth in Section 8.01.

 

“Exercise Price” means (i) in the case of an Option, the
price at which a Share may be purchased by a Participant pursuant to such
Option and (ii) in the case of a Stock Appreciation Right, the base price of
such Stock Appreciation Right.

 

“Fair Market Value” means the closing price of a Share (at
the end of the regular session, as reported on the Consolidated Tape) on the
NYSE.

 

“Good Reason” means, with respect to a Participant, the
occurrence of one or more of the following events, without such Participant’s
consent, following a Sale of the Company: (i) any material diminution in such
Participant’s positions, duties, responsibilities or authority immediately
prior to such Sale of the Company; (ii) the assignment to such Participant of
duties or responsibilities that are materially inconsistent with such
Participant’s position immediately prior to such Sale of the Company; (iii) any
material adverse change to such Participant’s compensation or benefits
structure unless such material adverse change is generally applicable to
Company officers; (iv) a 

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relocation of Participant’s principal place of employment more than 50
miles from such location as in effect immediately prior to such Sale of the
Company.

 

“Initial Value” has the meaning set forth in Section 8.01.

 

“ISOs” has the meaning set forth in Section 6.01.

 

“LLC” means Aventine Renewable Energy Holdings, LLC, a
Delaware limited liability company and its successors.

 

“MSCP Funds” means, collectively, Morgan Stanley Dean Witter
Capital Partners IV, L.P., Morgan Stanley Dean Witter Capital Investors IV,
L.P. and MSDW IV 892 Investors, L.P., and any of their permitted transferees.

 

“Option” means an option to purchase Shares granted to an
Eligible Individual under Article 6.

 

“Participant” means an Eligible Individual who receives an
Award under the Plan.

 

“Performance-based Objectives” means any one or more of the
following:  price of Shares or the stock
of any affiliate; shareholder return; return on assets; return on equity;
return on investment; return on capital; sales productivity; economic profit;
economic value added; net income; operating income; earnings (including
earnings before taxes; earnings before interest and taxes; or earnings before
interest, taxes, depreciation, and amortization); gross margin; sales; sales
growth; product sales growth; free cash flow; earnings per share; earnings per
share growth; operating company contribution or market share; improvements in
or attainment of expense levels or working capital levels; comparisons of gross
selling price over time or with specified competitors; freight, commissions and
other selling expenses;  regulatory
achievements; and implementation, completion or attainment of measurable
objectives with respect to research, development, products or projects,
production volume levels, acquisitions and divestitures; and recruiting and
maintaining personnel.  Such performance
goals may be based solely by reference to the Company’s performance or the
performance of a Subsidiary, division, business segment or business unit of the
Company, or based upon the relative performance of other companies or upon
comparisons of any of the indicators of performance relative to other companies.  The Committee may also exclude charges
related to an event or occurrence which the Committee determines should
appropriately be excluded, including (a) restructurings, discontinued
operations, extraordinary items, and other unusual or non-recurring charges,
(b) an event either not directly related to the operations of the Company or
not within the reasonable control of the Company’s management, or (c) the
cumulative effects of tax or accounting changes in accordance with U.S.
generally accepted accounting principles. 
Such performance goals shall be set by the Committee within the time
period prescribed by, and shall otherwise comply with the requirements of,
Section 162(m) of the Code, and the regulations thereunder.

 

“Performance Period” has the meaning set forth in Section
8.02.

 

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“Performance Shares” means units representing Shares, as
described in Article 8.

 

“Performance Share Account” has the meaning set forth in
Section 8.01.

 

“Performance Units” means units which do not represent Shares
but which may be paid in the form of Shares, as described in Article 8.

 

“Performance Unit Account” has the meaning set forth in
Section 8.02.

 

“Person” means an individual, corporation, partnership,
association, trust, limited liability company or any other entity or
organization, including a government or political subdivision or an agency,
unit or instrumentality thereof.

 

“Restricted Stock” means any Share granted to an Eligible
Individual under Article 7.

 

“Restricted Stock Unit” or “RSU”
means a contractual right granted to an Eligible Individual under Article 7
that is denominated in Shares.  Each unit
represents a right to receive the value of one Share (or a percentage of such
value) upon the terms and conditions set forth in the Plan and the applicable
Award Agreement. 

 

“Sale of the Company” means either (i) a sale, lease,
transfer, conveyance or other disposition, in one or a series of related
transactions, of all or substantially all of the assets of the Company and its
Subsidiaries, taken as a whole or (ii) a transaction or series of transactions
(including by way of merger, consolidation, sale of stock or otherwise) the
result of which is that any Person or “group” (as defined in Section 13 of the
Securities Exchange Act), other than the LLC, the MSCP Funds or any of their
respective Affiliates (or a group containing any of them), becomes the
“beneficial owner” (as such term is defined in Rule 13d-3 and Rule 13d-5
promulgated under the Securities Exchange Act), directly or indirectly, of more
than 50% of the voting power of the outstanding voting stock of the Company.

 

“Securities Act” means the Securities Act of 1933, as
amended.

 

“Securities Exchange Act” means the Securities Exchange Act
of 1934, as amended.

 

“Shares” means shares of common stock of the Company, par
value $0.001 per share.

 

“SAR” or “Stock Appreciation Right”
means any right granted to an  Eligible
Individual under Article 6 to receive, upon exercise by such individual, the
excess of (i) the Fair Market Value of one Share on the date of exercise or at
any time during a specified period before the date of exercise over
(ii) the Exercise Price of the right on the date of grant, or if granted
in connection with an outstanding Option, on the date of grant of the related
Option, as specified by the Committee in its sole discretion.

 

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“Subsidiary” means (i) any company during any period in which
it is a “subsidiary corporation” as that term is defined in Section 424(f) of
the Code with respect to the Company, or (ii) any other entity of which
ownership interests having ordinary voting power to elect a majority of the
Board of Directors or other persons performing similar functions are directly
or indirectly owned by the Company.

 

“Substitute Award” means an Award granted pursuant to Article
5 in assumption of, or as an alternative to or replacement of, an outstanding
award previously granted by a business or entity all or a portion of which is
acquired by the Company or any Affiliate, or with which the Company or any
Affiliate combines.

 

ARTICLE
3

ADMINISTRATION

 

Section 3.01.  Committee.  The Plan shall be administered by
the Committee.  Following an initial
public offering of the Shares, it is intended that each member of the Committee
shall be (a) independent, within the meaning of and to the extent required by
applicable rulings and interpretations of 
the Securities and Exchange Commission and the applicable stock exchange
on which the Shares trade or are quoted, (b) a “Non-Employee Director”, as defined
from time to time for purposes of Section 16 of the Securities Act and the
rules promulgated thereunder and
(c) an outside director pursuant to Section 162(m) of the Code, and any
regulations issued thereunder, in each case at such time as the Company becomes
subject to the respective regulatory regime.

 

Section 3.02.  Authority of the
Committee.  Subject to the
provisions of the Plan, the Committee shall have the authority, in its
discretion and on behalf of the Company:

 

(a)   to select from among the Eligible Individuals
those persons who shall receive Awards, to determine the time or times of
receipt, to determine the types of Awards and the number of Shares covered by
the Awards, to establish the terms, conditions, performance criteria,
restrictions and other aspects of the Awards and the provisions of the
applicable Award Agreement and to modify, amend, cancel or suspend Awards;

(b)   to interpret the Plan;

(c)   to prescribe, amend and rescind any rules and
regulations relating to the Plan;

(d)   to determine whether, to what extent and under
what circumstances Awards may be settled in cash, Shares, other Awards or other
property, including without limitation the authority to settle Awards in cash
or property upon a Sale of the Company or other similar corporate transaction;

(e)   to determine whether, to what extent and
under what circumstances cash, Shares, other Awards, other property and any
other amounts payable with respect to an Award shall or may be deferred either
automatically or at the election of the Participant or of the Committee;

(f)    to determine whether, and to what extent and
under what circumstances an Award shall include Dividend Equivalent Rights;

(g)   subject to Article 16, to accelerate vesting
of an Award previously granted under the Plan; and

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(h)   to make all other determinations and
findings, including factual findings, deemed necessary or advisable for the
administration of the Plan.

 

Section 3.03.  Committee Discretion.  In exercising its authority, the
Committee shall have the broadest possible discretion. Unless otherwise
expressly provided in the Plan, all designations, determinations,
interpretations and other decisions made in good faith by the Committee under
or with respect to the Plan, any Award or Award Agreement shall be final,
binding and conclusive on all persons.

 

Section 3.04.  Committee Delegation.  To the extent permitted by
applicable law or regulation, the Committee may delegate its authority, or
specified items thereof, to one or more designated individuals or other
committees of the Board.

 

ARTICLE
4

SHARES SUBJECT TO THE PLAN

 

Section 4.01.  General Limitation.  (a) 
Subject to the provisions of Section 4.02, the maximum number of Shares
that may be delivered to Participants and their beneficiaries under the Plan
shall be 6,701,172 Shares (including shares available for awards under the
Prior Plan).  Notwithstanding the foregoing and subject
to adjustment as provided in Section 4.02, no Covered Employee may be granted
under this Plan in any calendar year (i) Options or SARs that relate to more
than 750,000 Shares, (ii) Restricted Stock, Restricted Stock Units, Performance
Shares or Performance Units that relate to more than 500,000 Shares, or (iii)
Awards payable in cash in any amount exceeding $5 million.

 

Notwithstanding
anything herein to the contrary and subject to adjustment as provided in
Section 4.02, ISOs relating to more than 1,000,000 Shares in the aggregate may
not be granted under the Plan.

(b)           To the extent any Shares covered by
an Award are not delivered to a Participant or beneficiary because the Award is
forfeited, canceled, expires without being exercised, or the Shares are not
delivered because the Award is settled in cash or used to satisfy applicable
minimum tax withholding obligations or otherwise, such Shares shall not be
deemed to have been delivered for purposes of determining the maximum number of
Shares available for delivery under the Plan.

 

(c)           If the Exercise Price of any Option
or SAR granted under the Plan is satisfied by tendering Shares to the Company
(by either actual delivery or by attestation), only the number of Shares issued
net of the Shares tendered shall be deemed delivered for purposes of
determining the maximum number of Shares remaining available for delivery under
the Plan.

 

(d)           Any Shares covered
by a Substitute Award shall not be deemed to have been delivered for purposes
of determining the maximum number of Shares remaining available for delivery
under the Plan.

 

Section 4.02.  Adjustments. 
In the event that any corporate transaction or distribution
(including, without limitation, any stock split, stock dividend, extraordinary 

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cash dividend,
issuance of warrants or other rights to purchase Shares or other securities of
the Company, recapitalization, reorganization, merger, consolidation, split-up,
spin-off, repurchase, combination or exchange of Shares or other securities of
the Company) affects the Shares such that an adjustment is necessary in order
to prevent dilution or enlargement of the benefits or potential benefits
intended to be made available under the Plan, then the Committee shall, in such
manner as it deems equitable, adjust any or all of (i) the number of Shares or
other securities of the Company (or number and kind of other securities or
property) with respect to which Awards may be granted under Section 4.01; (ii)
the number of Shares or other securities of the Company (or number and kind of
other securities and property) subject to outstanding Awards; and (iii) the
grant, purchase or exercise price or other terms and conditions of any Award
or, if deemed appropriate, the Committee may make provision for a cash payment
to the holder of an outstanding Award in full satisfaction of such Award.

 

ARTICLE
5

ELIGIBILITY
AND PARTICIPATION

 

Subject to the
terms and conditions of the Plan, the Committee shall determine and designate,
from time to time, from among the Eligible Individuals those persons who will
be granted one or more Awards under the Plan and thereby become Participants in
the Plan.  Awards may be granted on
conditions specified by the Committee. Awards may be granted as alternatives to
or in replacement of Awards outstanding under the Plan or any other plan or
arrangement of the Company or an Affiliate (including a plan or arrangement of
a business or entity, all or a portion of which is acquired by or combines with
the Company or an Affiliate).

 

ARTICLE
6

OPTIONS AND STOCK APPRECIATION RIGHTS

 

Section 6.01.  Options.  The Committee is hereby authorized
to grant Options to Participants. 
Options granted pursuant to the Plan may be either “incentive stock
options” within the meaning of Section 422 of the Code (“ISOs”)
or nonqualified stock options. 
“Incentive stock options” may only be granted to officers and other key
employees of the Company or its Subsidiaries. 
Any Option granted under the Plan will be evidenced by an Award
Agreement and shall contain terms and conditions not inconsistent with the
following limitations and conditions.

 

Section 6.02.  Stock Appreciation
Rights.  The Committee is
hereby authorized to grant Stock Appreciation Rights to Participants with terms
and conditions as the Committee shall determine not inconsistent with the
provisions of the Plan.  SARs may be
granted hereunder to Participants either alone or in addition to other Awards
granted under the Plan and may, but need not, relate to a specific Option
granted under this Article 6.  Any SAR
granted under the Plan will be evidenced by an Award Agreement.

 

Section 6.03.  Exercise Price.  Other than in connection with
Substitute Awards or a result of adjustments made pursuant to Section 4.02, the
Exercise Price shall be no less than 100% of the Fair Market Value of a Share
on the date of grant of an Option or SAR, as applicable.  

 

 7
 

Section 6.04.  Vesting.  Unless the Committee at any time
determines otherwise, subject to Article 16, Options or SARs granted to
employees of the Company or any Subsidiary will not be exercisable before the
first anniversary of the date of grant.

 

Section 6.05.  Terms of Exercise.  An Option or SAR shall be
exercisable only in accordance with the terms and conditions and during such
periods as may be established by the Committee in the Award Agreement or
otherwise in accordance with the Plan and the Award Agreement. The Committee
may, in its discretion, provide that such an Option or SAR may be exercised in
whole or in part, in installments, cumulative or otherwise, for any period of
time specified by the Committee or based on performance or other criteria
established by the Committee.

 

Section 6.06.  Payment.  No Shares shall be delivered pursuant
to any exercise of an Option until payment in full of the Exercise Price, or
adequate provision therefor (in the discretion of the Committee), is received
by the Company.  The Committee shall
determine the method or methods by which such payment shall be made, and the
form or forms of such payment, which shall include:  (i) cash, (ii) Shares owned by the
Participant or in Shares which may be received by the Participant upon exercise
of the Option or SAR (in each case, the value of such Shares shall be their
Fair Market Value on the date of exercise), or (iii) any combination thereof.

 

Section 6.07.  Expiration and
Termination.  An Option or SAR
and all rights and obligations thereunder shall expire on the date to be
determined by the Committee and set forth in the Award Agreement, which shall
not be greater than ten years from the date of grant of such Option or SAR, as
applicable, provided, however,
that except as otherwise determined by the Committee at the time of grant or
thereafter, upon any termination of a Participant’s employment or service with
the Company or the Subsidiaries, the unvested portion of an Option or SAR, as
applicable, held by such Participant shall be deemed immediately forfeited and
cancelled without any payment or consideration being due from the Company.

 

Section 6.08.  Special Rules Applicable To
ISOs.  

 

(a)  10% Shareholders.  Notwithstanding any other provision of this
Plan to the contrary, no Participant may receive an ISO under the Plan if such
Participant, at the time the award is granted, owns (after application of the
rules contained in Section 424(d) of the Code) Shares possessing more than ten
(10) percent of the total combined voting power of all classes of stock of the
Company or its subsidiaries, unless (i) the option price for such ISO is at
least 10 percent of the fair market value of the Shares subject to such ISO on
the date of grant and (ii) such Option is not exercisable after the date five
(5) years from the date such ISO is granted.

 

(b)  Limitation on Grants.  The aggregate fair market value (determined
with respect to each ISO at the time such ISO is granted) of the Shares with
respect to which Incentive Stock Options are exercisable for the first time by
a Participant during any calendar year (under this Plan or any other plan of
the Company or a Subsidiary) shall not exceed $100,000.

 

 8
 

(c)  Limitations on Time of
Grant.  No grant of an ISO
shall be made under this Plan more than ten (10) years after the earlier of the
date of adoption of the Plan by the Board or the date the Plan is approved by
stockholders.

 

ARTICLE
7

RESTRICTED
STOCK AND RESTRICTED STOCK UNITS

 

Section 7.01.  Restricted Stock and
Restricted Stock Units. (a) 
The Committee is hereby authorized to grant Awards of Restricted Stock
and Restricted Stock Units (payable in shares) to Participants.  Restricted Stock and Restricted Stock Units
shall be subject to such restrictions on transferability, risk of forfeiture
and other restrictions, if any, as the Committee may impose (including, without
limitation, any limitation on the right to vote Shares underlying the
Restricted Stock or the right to receive any dividend, other rights or
property), which restrictions may lapse separately or in combination at such
times, under such circumstances (including future service requirements), in
such installments or otherwise and under such other circumstances as the
Committee may determine at the date of grant or thereafter.  Awards of Restricted Stock and Restricted
Stock Units may be issued to Participants for no consideration, for such
minimum consideration as may be required by applicable law or for other
consideration, as determined by the Committee in its sole discretion.

 

(b)  Forfeiture.  Except as otherwise determined by the
Committee at any time, upon termination of employment or service during the
applicable restriction period, Restricted Stock or Restricted Stock Units that
are at that time subject to restrictions shall be forfeited and reacquired by
the Company; provided that the Committee may
provide, by rule or regulation or in any Award Agreement, or may determine in
any individual case, that restrictions or forfeiture conditions relating to
Restricted Stock and Restricted Stock Units will lapse in whole or in part on
certain events, including in the event of terminations resulting from specified
causes.

 

(c)  Certificates for Stock.  Restricted Stock granted under the Plan may
be evidenced in such manner as the Committee shall determine.  If certificates representing Restricted Stock
are registered in the name of the Participant, the Committee may require that
such certificates bear an appropriate legend referring to the terms, conditions
and restrictions applicable to such Restricted Stock, that the Company retain
physical possession of the certificates, and that the Participant deliver a
stock power to the Company, endorsed in blank, relating to the Restricted
Stock.

 

ARTICLE
8

PERFORMANCE SHARES AND UNITS

 

Section 8.01.  Award of Performance Shares.  

 

(i)  For each Performance Period (as defined in
Section 8.02), Performance Shares or Performance Units may be granted under the
Plan.  Each Performance Share shall be
deemed to be equivalent to one (1) Share. 
Performance Shares granted to a Participant shall be credited to an
account (a 

 9
 

“Performance Share Account”)
established and maintained for such Participant.

 

(ii)  The Award Agreement covering Performance
Units shall specify a value for each Performance Unit or shall set forth a
formula for determining the value of each Performance Unit at the time of
payment (the “Ending Value”).  If necessary to make the calculation of the
amount to be paid to the Participant pursuant to Section 8.03, the Committee
shall also state in the Award Agreement the initial value of each Performance
Unit (the “Initial Value”).  Performance Units granted to a Participant
shall be credited to an account (a “Performance Unit Account”)
established and maintained for such Participant.

 

Section 8.02.  Performance Period.  “Performance
Period” shall mean such period of time as shall be determined by the
Committee in its sole discretion; provided, however, that a Performance period
shall not be shorter than 12 months nor longer than five years.  Different Performance Periods may be established
for different Participants receiving Performance Shares.  Performance Periods may run consecutively or
concurrently.

 

Section 8.03.  Right to Payment of
Performance Shares and Performance Units. 
With respect to each award of Performance Shares or
Performance Units under this Plan, the Committee shall specify
Performance-Based Objectives which must be satisfied in order for the
Participant to vest in the Performance Shares which have been awarded the
Participant for the Performance Period. 
The Committee may also determine, in its sole discretion, that
Performance Shares or Performance Units awarded to a Participant shall become
partially or fully vested upon the Participant’s death, Disability or
retirement, or the termination of the Participant’s employment prior to the end
of the Performance Period.

 

Section 8.04.  Payment for Performance Shares
and Performance Units.  

 

(a)  As soon as practicable following the end of a
Performance Period, the Committee shall determine whether and to what extent
the Performance Objectives for the Performance Period have been achieved.  If the Performance Objectives for the
Performance Period have been exceeded, the Committee shall determine whether
additional Performance Shares or Performance Units shall be granted to the
Participant pursuant to Section 8.03.

 

(b)  As soon as reasonably practicable after such
determinations, or at such later date as the Committee shall determine at the
time of grant, the Company shall pay to the Participant one Share with respect
to each vested Performance Share.  

 

(c)  As soon as reasonably practicable after such
determinations, or at such later date as the Committee shall determine, the
Company shall pay to the Participant an amount with respect to each vested
Performance Unit equal to the Ending Value of the Performance Unit.  Payment shall be made entirely in cash,
entirely in Shares (including Restricted Shares) or in such combination of cash
and Shares as the Committee shall determine.

 

 10
 

Section 8.05.  Voting and Dividend
Rights.  Except as the
Committee may otherwise provide, no Participant shall be entitled to any voting
rights, to receive any dividends, or to have his or her Performance Share
Account credited or increased as a result of any dividends or other
distribution with respect to Common Shares. 
Notwithstanding the foregoing, within sixty (60) days from the date of
payment of a dividend by the Company on its Shares, the Committee, in its
discretion, may credit a Participant’s Performance Share Account with
additional Performance Shares having an aggregate fair market value equal to
the dividend per share paid on the Shares multiplied by the number of
Performance Shares credited to his or her account at the time the dividend was
declared.

 

ARTICLE
9

OTHER
STOCK-BASED AWARDS

 

The Committee is
authorized, subject to limitations under applicable law, to grant to
Participants such other Awards that may be denominated or payable in, valued in
whole or in part by reference to, or otherwise based on, or related to,
Shares.  The Committee shall determine
the terms and conditions of such Awards, which shall be consistent with the
terms of the Plan.  Shares or other
securities delivered pursuant to an Award in the nature of a purchase right
granted under this Article 9 shall be purchased for such consideration, which
may be paid by such method or methods and in such form or forms, including,
without limitation, cash, Shares, other securities, other Awards, or other
property, or any combination thereof, as the Committee shall determine.

 

ARTICLE
10

OTHER
PROVISIONS APPLICABLE TO ALL AWARDS

 

Section 10.01.  Sale of the Company.  Unless otherwise determined by the
Committee and specified in the Award Agreement, upon a Sale of the Company in
which the successor company assumes or substitutes for any unvested Award, if a
Participant terminates employment for Good Reason or there is a termination of
a Participant’s employment other than for Cause, in
each case within the 24-month period beginning on the date of such Sale, any
unvested Awards held by such Participant shall become fully vested and
nonforfeitable.  Unless otherwise
determined by the Committee and specified in the Award Agreement, upon a Sale
of the Company in which the successor company does not assume or substitute for
any unvested Award, any unvested Awards held by such Participant shall become
fully vested and nonforfeitable.

 

Section 10.02.  Settlement of Award.  Shares delivered pursuant to the
exercise of an Option or SAR or upon settlement of any other Award shall be
subject to such conditions, restrictions and contingencies as the Committee may
establish pursuant to the Plan and any Award Agreement, in addition to the
conditions set forth herein.

 

Section 10.03.  Amendment to Awards.  Subject to Article 16, the
Committee may waive any conditions or rights under, amend any terms of, or
alter, suspend, discontinue, cancel or terminate, any Award theretofore
granted, prospectively or retroactively.

 

 11
 

Section 10.04.  Other Provisions. The
grant of any Award may also be subject to such other provisions as the
Committee deems appropriate (whether or not applicable to any Award granted to
any other Participant), including the treatment of Awards and Shares upon the
occurrence of any corporate transaction or distribution involving the Company,
including any merger, reorganization, recapitalization or other similar
corporate event.  

 

ARTICLE
11

DEFERRALS

 

This Plan shall be
operated and interpreted in accordance with Code Section 409A, any regulations
promulgated thereunder or any other applicable guidance.  Subject to the foregoing, the Committee, in
an Award Agreement or otherwise, may permit a Participant to defer such
Participant’s receipt of the payment of cash or delivery of Shares that would
otherwise be due to such Participant by virtue of the exercise of an Option or SAR
or the settlement of any other Award made under this Plan.

 

ARTICLE
12

TAX WITHHOLDING

 

All distributions
under the Plan are subject to withholding of all applicable taxes, and the
Committee may condition the delivery of Shares or other benefits upon satisfaction
of all applicable withholding requirements. The Committee, in its discretion
and subject to such requirements as it may prescribe, may permit such
withholding obligations to be satisfied through any combination of the
following:  (i) cash payment by the
Participant, (ii) payroll withholding of the Participant’s salary, wages or
other compensation, (iii) surrender of Shares which the Participant already
owns (either by actual surrender or attestation), or (iv) surrender of Shares
or other benefits to which the Participant is otherwise entitled (e.g., upon exercise of an Option or SAR or the settlement of
any other Award made under this Plan) under the terms of the Plan.

 

ARTICLE
13

TRANSFERABILITY OF OPTIONS AND OTHER AWARDS

 

Except as
otherwise expressly provided in an Award Agreement, no Award granted under this
Plan may be anticipated, assigned, attached, garnished, optioned, transferred
or made subject to any creditor’s process, whether voluntarily, involuntarily
or by operation of law.  An Option or any
other Award granted under this Plan may be exercised during the lifetime of the
Participant only by him or her or by his or her legal representative. 

 

ARTICLE
14

LIMITATION ON IMPLIED RIGHTS

 

Section 14.01.  Property Rights.  Neither a Participant nor any
other Person shall, by reason of participation in the Plan, acquire any right
in or title to any assets, funds or property of the Company or any Affiliate
whatsoever including without limitation, any 

 12
 

specific funds, assets or other property which the
Company or any Affiliate, in its or their sole discretion, may set aside in
anticipation of a liability under the Plan. 
Subject to the terms of the Plan, a Participant shall have only a
contractual right to the Shares or amounts, if any, payable under the Plan,
unsecured by any assets of the Company or any Affiliate, and nothing contained
in the Plan shall constitute a representation or guarantee that the assets of
the Company or any Affiliate shall be sufficient to pay any benefits to any
Person.

 

Section 14.02.  Employment Rights.  Nothing in this Plan nor in any
Award Agreement shall confer upon any Participant any promise or commitment by
the Company or an Affiliate regarding employment, employment positions, work
assignments, compensation or any other term or condition of employment or
affiliation.

 

Section 14.03.  No Implied Rights or
Obligations.  The Company, in
establishing and maintaining this Plan as a voluntary and unilateral
undertaking, expressly disavows the creation of any rights in Participants or
others claiming entitlement under the Plan or any obligations on the part of
the Company, any Affiliate or the Committee, except as expressly provided
herein. In particular, unless otherwise expressly provided for in the Award
Agreement, no third-party beneficiary rights shall be created under the Plan.  

 

Section 14.04.  No Trust or Fund Created.  Neither the Plan nor any Award
shall create or be construed to create a trust or separate fund of any kind or
a fiduciary relationship between the Company or any Affiliate and a Participant
or any other Person. To the extent that any Person acquires a right to receive
payments from the Company or any Affiliate pursuant to an Award, such right
shall be no greater than the right of any unsecured general creditor of the
Company or any Affiliate.

 

Section 14.05.  Rights as a Shareholder.  No Participant or holder of any
Option or of any other Award under this Plan shall have any rights as a
shareholder with respect to any Shares to be issued with respect to any Option
or other Award under the Plan until he or she shall have become the holder of
such Shares in accordance with the terms of the Plan.

 

ARTICLE
15

GOVERNMENT AND STOCK EXCHANGE REGULATIONS

 

The Committee may
refuse to issue or transfer any Shares or other consideration under an Award
if, acting in its sole discretion, it determines that the issuance or transfer
of such Shares or such other consideration might violate any applicable law or
regulation or entitle the Company to recover the same under Section 16(b) of
the Exchange Act, and any payment tendered to the Company by a Participant,
other holder or beneficiary in connection with the exercise of such Award shall
be promptly refunded to the relevant Participant, holder or beneficiary. Without
limiting the generality of the foregoing, no Award granted hereunder shall be
construed as an offer to sell securities of the Company, and no such offer
shall be outstanding, unless and until the Committee in its sole discretion has
determined that any such offer, if made, would be in compliance with all
applicable requirements of the U.S. federal and state securities laws and any
other laws to which such offer, if made, would be subject.

 

 13
 

Upon the exercise
of an Option or settlement of any other Award under this Plan at a time when
there is not in effect a registration statement under the Securities Act
relating to the Shares issuable upon exercise or payment thereof and available
for delivery a prospectus meeting the requirements of Section 10(a)(3) of the
Securities Act or if the rules or interpretations of the Securities and
Exchange Commission so require, the Shares may be issued only if the holder
represents and warrants in writing to the Company that the Shares purchased are
being acquired for investment and not with a view to distribution thereof.

 

The Company is
under no duty to ensure that Shares may legally be delivered under the Plan,
and shall have no liability to Award recipients in the event such delivery of
Shares may not be made.

 

ARTICLE
16

AMENDMENTS,
SUSPENSIONS OR TERMINATION OF PLAN

 

The Board may at
any time suspend or terminate the Plan and may amend it from time to time in
such respects as the Board may deem advisable in order that Awards granted
thereunder shall conform to any change in the law, or in any other respect
which the Board may deem to be in the best interests of the Company; provided, however, that any amendment that would constitute
a “material revision” of the Plan within the meaning of NYSE Rule 303A(8) shall
be subject to the approval of the holders of a majority of the voting power
represented by the securities of the Company entitled to vote.  If the Plan is terminated, the terms of the
Plan shall, notwithstanding such termination, continue to apply to Awards
granted prior to such termination.  No
suspension, termination, modification or amendment of the Plan may, without the
written consent of the Participants to whom an Award shall theretofore have
been granted, adversely affect the rights of such Participant under such Award.

 

ARTICLE
17

TERMINATION

 

The Plan shall
continue in effect until March 21, 2017, unless earlier terminated by the Board
pursuant to Article 16.

 

ARTICLE
18

GOVERNING LAW

 

The validity,
construction and effect of the Plan, the Award Agreements and any rules,
regulations or procedures relating thereto shall be determined in accordance
with the laws of the State of Delaware, without application of the conflict of
laws principles thereof.

 14Exhibit
10.1

EXECUTION COPY

EMPLOYMENT
AGREEMENT

THIS
EMPLOYMENT AGREEMENT (this “Agreement”) is
dated as of this 10th day of April, 2007, by and
between the Seneca Gaming Corporation (“Parent”), a
governmental instrumentality of the Seneca Nation of Indians of New York (the “Nation”) and Robert Victoria (“Executive”).

WHEREAS,
Parent desires that Executive serve as the Senior Vice President of Marketing
of Parent and each of the Seneca Niagara Falls Gaming Corporation (“SNFGC”), the Seneca Territory Gaming Corporation (“STGC”), and the Seneca Erie Gaming Corporation (“SEGC”), each a wholly-owned subsidiary of Parent and a
governmental instrumentality of the Nation (collectively, the “Subsidiaries” and together with Parent, “Employer”); and

WHEREAS,
Executive desires to serve as Senior Vice President of Marketing of Employer in
accordance with the terms and conditions of this Agreement.

IT
IS HEREBY AGREED AS FOLLOWS:

1.             Employment. Employer hereby
employs Executive as its Senior Vice President of Marketing.  Executive shall report and be accountable to
and work under the authority of the President and Chief Executive Officer and
the Board of Directors of Parent (the “Board”).  Executive shall perform such duties and have
such responsibilities that are customary for such position and including those
that may be specified from time to time by the President and Chief Executive
Officer and/or the Board that are not inconsistent with such position.

2.             Term.  The term of this Agreement shall commence on March 5, 2007 (the “Commencement Date”)
and terminate on September 30, 2009 (the “Termination Date”), unless renewed by a subsequent written
agreement of the parties.

3.             Compensation.

(a)                                  Executive shall be
paid an annual base salary (“Base
Compensation”) of Three Hundred Twenty-Five Thousand Dollars
($325,000) for Employer’s fiscal year ending September 30, 2007.  Employer shall review said salary on an
annual basis (prior to or in connection with the close of its fiscal year) at
which time Employer shall determine in its sole discretion whether or not said
salary shall be increased and the timing thereof.  Said salary shall be payable in periodic
payments in accordance with Employer’s regular payroll practices.

(b)                                 Executive shall be
provided with coverage under Employer’s employee benefit insurance programs and
retirement programs, if any, at least equal to the coverage provided to other
senior executive officers of Employer.

(c)                                  Executive
shall also be eligible to receive performance or incentive compensation, which is
approved by the Board in its sole discretion. 
Said additional performance or incentive compensation, if any, shall be
in addition to and shall not lessen or reduce the Base Compensation.

(d)                                 Should
Executive become unable to perform the duties required under this Agreement as
a result of temporary, documented medical disability, he shall be eligible to
continue to receive his Base Compensation for a period of up to one hundred and
eighty (180) days.

4.             Licensing Issues.  Executive represents and warrants to Employer
that he shall maintain in good standing such licenses as may be required
pursuant to the Nation-State Gaming Compact between the Nation and the
State of New York (the “Compact”) and/or the Nation’s or Employer’s gaming
ordinances as in effect on the date hereof, as may be necessary to enable him
to engage in his employment hereunder.

5.             Termination.

(a)                                  Executive’s
employment hereunder may be terminated by Parent only under the following
circumstances and such termination by Parent shall be a termination with
respect to Parent and each of the Subsidiaries, unless otherwise determined by
the Board:

(i)                                     upon
revocation or disapproval of the license required pursuant to the Compact, or
upon disapproval by the National Indian Gaming Commission of the issuance of
any license by the Nation pursuant to its own gaming ordinances, if either such
action renders it unlawful for Executive to perform as Senior Vice President of
Marketing of Parent or any of the Subsidiaries, or if any event renders it unlawful
for the Nation and/or Employer to continue to conduct casino gaming on Nation
Territory.  For purposes of this
Agreement, “Nation Territory” shall include current or future Nation territory
where Employer conducts or will conduct its gaming operations as of the date
Executive’s employment is terminated.

(ii)                                  upon
revocation or disapproval of such licenses for Executive as are required
pursuant to the Compact and/or by the Nation’s or Employer’s gaming ordinances;

(iii)                               Executive
shall commit an act constituting “Cause,” which is defined to mean an act of
dishonesty by Executive intended to result in gain or personal enrichment of
Executive or others at Employer’s expense, or the deliberate and intentional
refusal by Executive (except by reason of disability) to perform his duties
hereunder, or by acts constituting gross negligence in the performance of such
duties, or the failure to perform any material term or condition of this
Agreement after written notice thereof from Company and a reasonable opportunity
to cure such failure (as determined by Company and specified in the notice of
breach); or

 2
 

(iv)                              Executive
shall die or Employer shall for any reason within Employer’s or the Nation’s
control permanently cease to conduct casino gaming on Nation Territory.

(b)                                 If
Executive’s employment should be terminated under Section 5(a) above (or any
subsection) then Employer shall at that time pay Executive (or his estate, as
applicable) Base Compensation earned through the date Executive is terminated,
whereupon Employer shall have no further liability or obligation to Executive
under this Agreement or otherwise.

(c)                                  If
Executive’s employment should be terminated by Parent for any reason other than
those specified in Section 5(a) above (it being understood that a purported
termination for Cause which is contested by Executive and finally determined
not to have been proper shall be treated as a termination under this Section
5(c)), then Employer shall: (i) pay Executive his Base Compensation earned, but
unpaid, through the date Executive is terminated, (ii)  continue to pay
Executive his Base Compensation in effect as of the date of termination for a
period following his termination (the “Severance Period”) equal to the lesser
of (A) twelve (12) months or (B) the remainder of the period ending on the
Termination Date, and (iii) to the extent elected by Executive, pay for the
cost of (A) Executive’s premiums for continuation healthcare coverage
under Section 4980B of the Internal Revenue Code of 1986, as amended (“COBRA”),
and (B) the premiums for Exec-u-Care® or any similar executive medical
reimbursement insurance plan maintained by Employer on the date Executive’s
employment is terminated, for the lesser of (1) the Severance Period,
(2) until Executive is no longer eligible for COBRA continuation coverage,
or (3) until Executive obtains comparable healthcare benefits from any
other employer during the Severance Period, whereupon Employer shall have no
further liability or obligation to Executive under this Agreement or otherwise;
provided, however, that Executive shall have a duty to mitigate
damages as follows: during the Severance Period, Executive shall endeavor to
mitigate damages by seeking employment with duties and salary comparable to
those provided for herein, and if he shall obtain such employment, he shall
reimburse Employer the amount of the compensation he has received from such
other entity for such period, but not to exceed the amount of the compensation
Employer shall have paid him for such period.

(d)                                 Executive
may terminate his employment for any reason upon one-hundred-twenty (120) days
written notice to Parent.  If Executive
terminates his employment pursuant to this paragraph 5(d), Employer shall pay
Executive the Base Compensation earned through the date of termination,
whereupon Employer shall have no further liability or obligation to Executive
under this Agreement or otherwise.

(e)                                  Executive
acknowledges and agrees that the payments set forth in this section 5
constitute liquidated damages for termination of his employment during the
employment term and such liquidated damages shall be his only remedy with
respect to any claim, including, without limitation, breach of contact, he may
have 

 3
 

under this
Agreement and that prior to receiving any such payments under Section 5 and as
a material condition thereof, Executive shall sign and agree to be bound by a
general release of claims against Employer related to Executive’s employment
(and termination of employment) with Employer in substantially the form as
attached hereto as Exhibit A as may be modified by Employer in good
faith to reflect changes in law or its employment practices.  Notwithstanding any other provision of this
Agreement to the contrary, Executive acknowledges and agrees that other than any
claim for the liquidated damages contemplated hereunder, he waives any rights
to be awarded any other damages with respect to any claim he may have under
this Agreement, including, without limitation, compensatory or punitive
damages.

6.             Restrictive Covenants.

(a)                                  Executive
acknowledges that:  (i) as a result of
Executive’s employment  with Employer, he
will obtain secret, proprietary and confidential information concerning the
business of Employer, including, without limitation, business and marketing plans,
strategies, employee lists, patron lists, operating procedures, business
relationships (including persons, corporations or other entities performing
services on behalf of or otherwise engaged in business transactions with
Employer), accounts, financial data, know-how, computer software and related
documentation, trade secrets, processes, policies and/or personnel, and other
information relating to Employer (“Confidential Information”);
(ii) the Confidential Information has been developed and created by Employer at
substantial expense and the Confidential Information constitutes valuable
proprietary assets and Employer will suffer substantial damage and irreparable
harm which will be difficult to compute if, during the Restricted Period,
Executive should enter a Competitive Business (as defined herein) in violation
of the provisions of this Agreement; (iii) Employer will suffer substantial
damage which will be difficult to compute if, during the Restricted Period,
Executive should solicit or interfere with Employer’s employees or patrons, or
should divulge Confidential Information relating to the business of Employer;
(iv) the provisions of this Section 6 are reasonable and necessary for the
protection of the business of Employer; (v) Employer would not have hired or
employed Executive unless he signed this Agreement; and (vi) the provisions of
this Agreement will not preclude Executive from other gainful employment.  “Competitive Business”
shall mean any gaming establishment which provides to its patrons games of
chance such as slot machines, card games, roulette, and similar games in the
State of New York or within the 100 mile radius of Nation Territory.

(b)                                 Executive
acknowledges and agrees that the unauthorized disclosure or misuse of
Confidential Information will cause substantial damage to Employer.  Therefore, Executive agrees not to, at any
time, either during the term of the Agreement or thereafter, divulge, use,
publish or in any other manner reveal, directly or indirectly, to any person,
firm or corporation any Confidential Information obtained or learned by
Executive during the course of his employment with Employer, with regard to the
operational, financial, business or other affairs and 

 4
 

activities of Employer, their officers, directors or
employees and the entities with which they have business relationships, except
(i) as may be necessary to the performance of Executive’s duties with Employer,
(ii) with Parent’s express written consent, (iii) to the extent that any such
information is in the public domain other than as a result of Executive’s
breach of any of obligations hereunder, or (iv) where required to be disclosed
by court order, subpoena or other government process and, in such event,
Executive shall cooperate with Employer in attempting to keep such information
confidential.

(c)                                  During
Executive’s employment with Employer and for twelve (12) months after his
termination of employment for any reason (the “Restricted
Period”), Executive, without the prior written permission of Parent,
shall not, directly or indirectly, (i) enter into the employ of or render any
services to any person, engaged in a Competitive Business; or (ii) become
associated with or interested in any Competitive Business as an individual,
partner, shareholder, member, creditor, director, officer, principal, agent,
employee, trustee, consultant, advisor or in any other relationship or
capacity.   This paragraph 6(c) shall not
prevent Executive from owning common stock in a publicly traded corporation
which owns or manages a casino provided Executive does not take an active role
in the ownership or management of such corporation and his ownership interest
represents less than 3% of the voting securities and/or economic value of such
corporation.

(d)                                 By
executing this Agreement, Executive acknowledges that he understands that
Employer’s ability to operate its business depends upon its ability to attract
and retain skilled people and that Employer has and will continue to invest
substantial resources in training such individuals.  Therefore, during the Restricted Period,
Executive shall not, without the prior written permission of Parent, directly
or indirectly solicit, employ or retain, or have or cause any other person or
entity to solicit, employ or retain, any person who is employed or is providing
personal services to Employer.

(e)                                  By
executing this Agreement, Employee acknowledges that Executive understands that
Employer’s ability to operate its business depends upon its ability to attract
and retain vendors and patrons.  Therefore,
during the Restricted Period, Executive shall not, directly or indirectly,
solicit, contact, interfere with, or endeavor to entice away from Employer any
of its current or potential patrons or any such persons or entities that were
patrons of Employer within the one year period immediately prior to Executive’s
termination of employment.  Executive
further agrees that, during the Restricted Period, Executive shall not,
directly or indirectly, endeavor to entice away from Employer any of its current
or potential vendors or any such persons or entities that were vendors of
Employer within the one year period immediately prior to Employee’s termination
of employment.

(f)                                    Executive
acknowledges and agrees during his employment and for all time thereafter that
he will not defame or publicly criticize the services, business, integrity,
veracity or personal or professional reputation of Employer and its 

 5
 

officers, directors, employees, affiliates, or agents
thereof in either a professional or personal manner.  Employer acknowledges and agrees that during
Executive’s employment and for all time thereafter, Employer will not defame or
publicly criticize Executive either in a professional or personal manner,
except as may be necessary to defend Employer from comments made by or on
behalf of Executive.

(g)                                 If
Executive commits a breach, or threatens to commit a breach, of any of the
provisions of this paragraph 6 of the Agreement, Employer shall have the right
and remedy to have the provisions specifically enforced by any court having
jurisdiction, it being acknowledged and agreed by Executive that the services
being rendered hereunder to Employer are of a special, unique and extraordinary
character and that any such breach or threatened breach will cause irreparable
injury to Employer and that money damages will not provide an adequate remedy
to Employer.  Such right and remedy shall
be in addition to, and not in lieu of, any other rights and remedies available
to Employer at law or in equity. 
Accordingly, Executive consents to the issuance of an injunction,
whether preliminary or permanent, consistent with the terms of this Agreement.

(h)                                 If,
at any time, the provisions of this Agreement shall be determined to be invalid
or unenforceable under any applicable law, by reason of being vague or
unreasonable as to area, duration or scope of activity, this Agreement shall be
considered divisible and shall become and be immediately amended to only such
area, duration and scope of activity as shall be determined to be reasonable
and enforceable by the court or other body having jurisdiction over the matter
and Executive and Employer agree that this Agreement as so amended shall be
valid and binding as though any invalid or unenforceable provision had not been
included herein.

7.             Miscellaneous.

(a)                                  Executive
agrees that during the term of this
Agreement  unless earlier
terminated, he will commit his full time and energies to the duties imposed
hereby; provided, that, with the prior written approval of the
Board, Executive may expend as much of his personal time on his own ventures or
investments, so long as: (i) such time is not substantial and does not
interfere with his ability to perform his duties hereunder; (ii) such
activities do not compete or conflict with the business of Employer or create a
personal conflict of interest to Executive and (iii) such venture or investment
does not transact any business with Employer without prior disclosure to, and
approval by, the Board.

(b)                                 Executive
represents to Employer that there are no restrictions or agreements to which he
is a party which would be violated by his execution of this Agreement and his
employment hereunder.

(c)                                  No
provisions of this Agreement may be amended, modified, or waived unless such
amendment or modification is agreed to in writing signed by Executive and by a
duly authorized officer of Parent, and such waiver is set forth in writing and 

 6
 

signed by the party to be charged.  No waiver by any party hereto at any time of
any breach by the other party hereto of any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.  No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not set forth
expressly in this Agreement.  The
respective rights and obligations of the parties hereunder of this Agreement
shall survive Executive’s termination of employment and the termination of this
Agreement to the extent necessary for the intended preservation of such rights
and obligations.

(d)                                 The
validity, interpretation, construction and performance of this Agreement shall
be governed by the laws of the State of New York without regard to its
conflicts of law principles.

(e)                                  Except
as provided in paragraph 6(g) of this Agreement, any dispute, controversy or
claim arising out of or relating to this Agreement shall be settled by binding
arbitration in Niagara Falls, New York in accordance with the Rules of the
American Arbitration Association, and judgment upon the award rendered by the
arbitrator(s) may be entered in the United States District Court for the
Western District of New York.  The parties
agree that the only remedies available to Executive under this Agreement are
those that are set forth in paragraph 5 and the arbitrator shall have no
authority to award any other damages, including, without limitation, punitive
and/or compensatory damages.

(f)                                    For
the purposes of this Agreement, notices, demands and all other communications
provided for in this Agreement shall be in writing and shall be deemed to have
been duly given when delivered either personally or by United States certified
or registered mail, return receipt requested, postage prepaid, addressed as
follows:

If
to Executive:

________________________

________________________

________________________

If to Parent:

310
4th Street

P.O.
Box 77

Niagara
Falls, New York (Seneca Nation Territory) 14303

Attn:  General Counsel

 7
 

or to such other address as any party may have furnished to the others
in writing in accordance herewith, except that notices of change of address
shall be effective only upon receipt.

(g)                                 The
invalidity or unenforceability of any provision or provisions of this Agreement
shall not affect the validity or enforceability of any other provision of this
Agreement, which shall remain in full force and effect.

(h)                                 This
Agreement may be executed in one or more counterparts, each of which shall be
deemed to be an original but all of which together will constitute one and the
same instrument.

(i)                                     Except
as otherwise provided herein, this Agreement sets forth the entire agreement of
the parties hereto in respect of the subject matter contained herein and
supersedes all prior agreements, promises, covenants, arrangements,
communications, representations or warranties, whether oral or written, by any
officer, employee or representative of any party hereto in respect of such
subject matter.  Except as otherwise
provided herein, the Original Employment Agreement and any other prior
agreement of the parties hereto in respect of the subject matter contained
herein is hereby terminated and cancelled.

(j)                                     All
payments hereunder shall be subject to any required withholding of federal,
state and local taxes pursuant to any applicable law or regulation.

(k)                                  The
section headings in this Agreement are for convenience of reference only, and
they form no part of this Agreement and shall not affect its interpretation.

8.             Waiver
of Sovereign Immunity.

(a)                                  Parent
grants a waiver of its sovereign immunity from suit exclusively to Executive
(and his estate in the event of his death) for the purpose of enforcing this
Agreement, or permitting or compelling arbitration and other remedies as
provided herein.  This waiver is solely
for the benefit of the aforesaid parties and for no other person or
entity.  For this limited purpose, Parent
consents to be sued solely with respect to the enforcement of any decision by
an arbitrator relating to this Agreement as provided in paragraph 7(e) of this
Agreement in the United States District Court for the Western District of New
York.

(b)                                 Parent
hereby waives any requirement of exhaustion of tribal remedies, and agrees that
it will not present any affirmative defense in any dispute based on any alleged
failure to exhaust such remedies. 
Without in any way limiting the generality of the foregoing, Parent
expressly authorizes any governmental authorities who have the right and duty
under applicable law to take any action authorized or ordered by any court, to
take such action, including, without limitation, repossessing any property and
equipment subject to a security interest or otherwise giving effect to any
judgment entered; provided, however that Parent does not hereby
waive the defense of sovereign immunity with respect to any action by third
parties.

 8
 

(c)                                  Parent’s
waiver of immunity from suit is irrevocable and specifically limited to the
remedies provided in paragraph 5 of this Agreement regarding liquidated
damages.  Any monetary award related to
any such action shall be satisfied solely from the net income of Parent.

(d)                                 Notwithstanding
anything in this Agreement to the contrary, this waiver is to be interpreted in
a manner consistent with Parent’s ability to enter into this Agreement,
including, without limitation, this paragraph 8, as provided in the Charter of
Parent, as it may be amended from time to time. 
Accordingly, the Nation shall not be liable for the debts or obligations
of Parent, and Parent shall have no power to pledge or encumber the assets of
the Nation.  Furthermore, this paragraph
8 does not constitute a waiver of any immunity of the Nation or a delegation to
Parent of the power to make any such waiver. This paragraph 8 shall be strictly
construed with a view toward protecting the Nation’s assets from the reach of
creditors and others.

	
  EXECUTED, as of the date first written above.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SENECA GAMING CORPORATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  E. Brian Hansberry

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Interim President and CEO

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXECUTIVE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Robert Victoria

  	
   

  	
   

  

 9

EXECUTION COPY

 

Exhibit A

Form of Release

See Attached.

EXECUTION COPY

 

MUTUAL RELEASE OF ALL CLAIMS

Release of Claims by Executive.

It is understood and agreed by the Seneca Gaming Corporation (the
“Company”), a governmental instrumentality of the Seneca Nation of Indians of
New York, and ___________________ (“Executive”), that in consideration of the
mutual promises and covenants contained in this general release of all claims
(the “Release Agreement”), Executive, on behalf of Executive and Executive’s
agents, representatives, administrators, receivers, trustees, estates, heirs,
devisees, assignees, legal representatives, and attorneys, past or present (as
the case may be), hereby irrevocably and unconditionally releases, discharges,
and acquits all the Released Parties (as defined below) from any and all claims,
promises, demands, liabilities, contracts, debts, losses, damages, attorneys’
fees and causes of action of every kind and nature, known and unknown, up to
and including the Effective Date (as defined below), provided, however, that
any claims arising after the Effective Date from the then present effect of
acts or conduct occurring on or before the Effective Date shall be deemed
released under this agreement, including but not limited to causes of action,
claims or rights arising out of, or which might be considered to arise out of
or to be connected in any way with (i) Executive’s employment or service with
the Company and, to the extent applicable, a Released Party, or the termination
thereof; (ii) the Employment Agreement dated as of _______________ between
the Company and Executive, or the termination thereof; (iii) any treatment of
Executive by any of the Released Parties, which shall include, without
limitation, any treatment or decisions with respect to hiring, placement,
promotion, discipline, work hours, demotion, transfer, termination,
compensation, performance review, or training; (iv) any statements or alleged
statements by the Company or any of the Released Parties regarding Executive,
whether oral or in writing; (v) any damages or injury that Executive may have
suffered, including without limitation, emotional or physical injury,
compensatory damages, or lost wages; (vi) employment discrimination, which
shall include, without limitation, any individual or class claims of
discrimination on the basis of age, disability, sex, race, religion, national
origin, citizenship status, marital status, sexual preference, or any other
basis whatsoever; or (vii) all such other claims that Executive could assert
against any, some, or all of the Released Parties in any forum, whether such
claims are known or unknown, accrued or unaccrued, liquidated or contingent,
direct or indirect.

Said release shall be construed as broadly as possible and shall also
extend to release the Released Parties, without limitation, from any and all
claims that Executive has alleged or could have alleged, whether known or
unknown, accrued or unaccrued, against any Released Party for violation(s) of
any of the following, to the extent applicable: 
the National Labor Relations Act, as amended; Title VII of the Civil
Rights Act of 1964, as amended; the Age Discrimination in Employment Act; the
Civil Rights Act of 1991; Sections 1981-1988 of Title 42 of the United States
Code; the Equal Pay Act; the Employee Retirement Income Security Act of 1974,
as amended; the Immigration Reform Control Act, as amended; the Americans with
Disabilities Act of 1990, as amended; the Fair Labor Standards Act, as amended;
the Occupational Safety and Health Act, as amended; the New York Human Rights
Law; the New York City Human Rights 

   
 

Law;
the New York Labor Law; the New York Whistleblower Protection Law; the New York
Wage and Hour Laws; the New York City Administrative Code; any other tribal,
federal, state, or local law or ordinance; any public policy, whistleblower,
contract, tort, or common law; and any demand for costs or litigation expenses,
including but not limited to attorneys’ fees.

The term “Released Parties” or “Released Party” as used herein shall
mean and include: the Company and the Company’s parents, subsidiaries,
affiliates, and all of their predecessors and successors (collectively, the
“Released Entities”), and with respect to each such Released Entity, all of its
former, current, and future officers, directors, agents, representatives, employees,
servants, owners, shareholders, partners, joint venturers, attorneys, insurers,
administrators, and fiduciaries, and any other persons acting by, through,
under, or in concert with any of the persons or entities listed herein.

Pursuant to the Older Workers Benefit Protection Act of 1990, Executive
understands and acknowledges that by executing this Release Agreement and
releasing all claims against any of the Released Parties, Executive has waived
any and all rights or claims that Executive has or could have against any
Released Party under the Age Discrimination in Employment Act, which includes
any claim that any Released Party discriminated against Executive on account of
Executive’s age.  Executive also acknowledges
the following:

(a)                                  The Company, by this written
Release Agreement, has advised Executive to consult with an attorney prior to
executing this Release Agreement;

(b)                                 This Release Agreement does
not include claims arising after the Effective Date, provided, however, that
any claims arising after the Effective Date from the then present effect of
acts or conduct occurring on or before the Effective Date shall be deemed
released under this Release Agreement;

(c)                                  The Company has provided
Executive the opportunity to review and consider this Release Agreement for
twenty-one (21) days from the date Executive receives this Release
Agreement.  At Executive’s option and
sole discretion, Executive may waive the twenty-one (21) day review period and
execute this Release Agreement before the expiration of twenty-one (21)
days.  If Executive elects to waive the
twenty-one (21) day review period, Executive acknowledges and admits that
Executive was given a reasonable period of time within which to consider this
Release Agreement and Executive’s waiver is made freely and voluntarily,
without duress or any coercion by any other person; and

(d)                                 Executive may revoke this
Release Agreement within a period of seven (7) days after execution of the
agreement.  Executive agrees that any
such revocation is not effective unless it is made in writing and delivered to
the Company, to the attention of the General Counsel of the Seneca Gaming
Corporation, 310 Fourth Street, Niagara Falls, New York (Seneca Nation
Territory) 14303, by the end of the seventh (7th) calendar day.  Under any such valid revocation, Executive
shall not be entitled to any benefits under this Release Agreement and this
Release Agreement shall become null and void. 
This Release Agreement becomes effective on the eighth (8th) calendar
day after it is executed by both parties (the “Effective Date”).

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Executive confirms that no claim, charge, or complaint against any of
the Released Parties, brought by Executive, exists before any federal, state,
or local court or administrative agency. 
Executive hereby waives Executive’s right to accept any relief or
recovery, including costs and attorney’s fees, from any charge or complaint
before any federal, state, or local court or administrative agency against any
of the Released Parties, except as such waiver is prohibited by law.

Executive agrees that Executive will not, unless otherwise prohibited
by law, at any time hereafter, participate in as a party, or permit to be filed
by any other person on  Executive’s
behalf or as a member of any alleged class of persons, any action or proceeding
of any kind, against the Released Parties or any past, present or future
employee benefit and/or pension plans or funds of the Released Entities with
respect to any act, omission, transaction or occurrence up to and including the
date of the execution of this Release Agreement.  Executive further agrees that Executive will
not seek or accept any award or settlement from any source or proceeding with
respect to any claim or right covered by this paragraph or by the Release
Agreement and that this Release Agreement shall act as a bar to recovery in any
such proceedings.

Executive agrees that neither this Release Agreement nor the furnishing
of the consideration for the general release set forth in this Release
Agreement shall be deemed or construed at any time for any purpose as an
admission by the Released Parties of any liability or unlawful conduct of any
kind.  Executive further acknowledges and
agrees that the consideration provided for herein is adequate consideration for
Executive’s obligations under this Release Agreement.

Release
of Claims by Company.

Subject to the provisions of this Release Agreement and subject to
Executive not exercising Executive’s revocation rights hereunder, the Company
hereby irrevocably and unconditionally releases, waives and fully and forever
discharges Executive, from and against any and all claims, liabilities,
obligations, covenants, rights, demands and damages of any nature whatsoever,
whether known or unknown, anticipated or unanticipated, arising from, by reason
of or in any way related to any transaction, event or circumstance which
occurred or existed prior to and including the date of this Release Agreement
arising out of or in any way related to Executive’s employment with the Company
and, to the extent applicable, a Released Party, or the termination
thereof.  Notwithstanding the provisions
of this paragraph, nothing in this waiver or release shall be construed to
constitute any release or waiver by the Company of its rights or claims against
Executive arising out of any intentional or willful misconduct or fraudulent or
criminal acts engaged in by Executive while in the course of Executive’s
employment or service.

Miscellaneous.

This Agreement and all questions relating to its
validity, interpretation, performance and enforcement shall be governed by and
construed in accordance with the laws of the Seneca Nation of Indians.  If any provision of the Release Agreement
other than the general release set 

 3
 

forth above, is declared legally or factually invalid or unenforceable
by any court of competent jurisdiction and if such provision cannot be modified
to be enforceable to any extent or in any application, then such provision
immediately shall become null and void, leaving the remainder of this Release
Agreement in full force and effect.  If
any portion of the general release set forth in this Release Agreement is
declared to be unenforceable by a court of competent jurisdiction in any action
in which Executive participates or joins, Executive agrees that all
consideration paid to Executive under this Release Agreement shall be offset
against any monies that Executive may receive in connection with any such
action.

This Release Agreement sets forth the entire agreement between
Executive and the Released Parties and it supersedes any and all prior
agreements or understandings with respect to the subject matter hereof, whether
written or oral, between the parties, except as otherwise specified in this
Release Agreement.  Executive
acknowledges that Executive has not relied on any representations, promises, or
agreements of any kind made to her in connection with Executive’s decision to
sign this Release Agreement, except for those set forth in this Release
Agreement.

This Release Agreement may not be amended except by a written agreement
signed by both parties, which specifically refers to this Release Agreement.

EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE CAREFULLY HAS READ THIS RELEASE
AGREEMENT; THAT EXECUTIVE HAS HAD THE OPPORTUNITY TO THOROUGHLY DISCUSS ITS
TERMS WITH COUNSEL OF EXECUTIVE’S CHOOSING; THAT EXECUTIVE FULLY UNDERSTANDS
ITS TERMS AND ITS FINAL AND BINDING EFFECT; THAT THE ONLY PROMISES MADE TO SIGN
THIS RELEASE AGREEMENT ARE THOSE STATED AND CONTAINED IN THIS RELEASE
AGREEMENT; AND THAT EXECUTIVE IS SIGNING THIS RELEASE AGREEMENT KNOWINGLY AND
VOLUNTARILY.  EXECUTIVE STATES THAT
EXECUTIVE IS IN GOOD HEALTH AND IS FULLY COMPETENT TO MANAGE EXECUTIVE’S
BUSINESS AFFAIRS AND UNDERSTANDS THAT EXECUTIVE MAY BE WAIVING SIGNIFICANT
LEGAL RIGHTS BY SIGNING THIS RELEASE AGREEMENT.

[Signature
Page Follows]

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IN WITNESS
WHEREOF, Executive has executed this Release Agreement as of the date set forth
below.

	
  

  	
   

  	
   

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Date:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Sworn to and subscribed before me

this ___ day of _____________, 20___.

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
  Notary Public

  	
   

  	
   

  	
   

  	
   

  

 

	
  

  	
   

  	
   

  	
   

  	
  ACCEPTED AND ACKNOWLEDGED BY

  
	
   

  	
   

  	
   

  	
   

  	
  SENECA GAMING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Date:

  

 

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