Document:

Exhibit 10.1 09.30.2014

Exhibit  10.1

SEPARATION AGREEMENT AND GENERAL RELEASE

This Separation Agreement (the "Separation Agreement") is made as of this 4th day of September, 2014 by and among Pinnacle Entertainment, Inc., a Delaware corporation (the "Company") and Michelle Shriver ("Executive," and together with the Company are referred to in this Separation Agreement collectively, as the "Parties").

WHEREAS, Executive has been employed by the Company under terms set forth in the Employment Agreement dated as of July 30, 2013, effective as of August 13, 2013 (the "Employment Agreement");

WHEREAS, Executive's employment with the Company will end by Executive's separation of employment (the "Separation") on September 4, 2014 (the "Separation Date"); and

WHEREAS, the Parties desire to enter into this Separation Agreement in order to set forth the definitive rights and obligations of the Parties in connection with the Separation.

NOW, THEREFORE, in consideration of the mutual covenants, commitments and agreements contained herein, and for other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Parties intending to be legally bound hereby agree as follows:

1.     Acknowledgment of Separation. The Parties acknowledge and agree that the Separation will occur on the Separation Date and that the Separation shall be treated as a termination without cause other than in connection with a change of control for all purposes under the Employment Agreement (other than with respect to surviving provisions of the Employment Agreement as set forth below).  In addition, notwithstanding anything to the contrary, the Parties acknowledge and agree that all provisions of the Employment Agreement will terminate effective as of the Separation Date, with the exception of the provisions of Sections 7.1, 7.2, 7.3, 7.4, 7.5, 7.6, 7.7, 7.8, 7.9, 9.7, 9.8, 9.14, 9.15  and Article 8 of the Employment Agreement (collectively, the "Surviving Employment Agreement Provisions"), which shall survive the Separation and the effectiveness of this Separation Agreement and will remain in full force and effect after the Separation Date in accordance with their terms, regardless of the reason for this termination of employment.  The post-separation provisions of the Employment Agreement, including specifically Sections 7.3, 7.4, 7.5, 7.6 and 7.7, with respect to periods after the "Term," "Initial Term" or "Renewal Term" (as such terms are used in the Employment Agreement) shall be considered effective as of and shall run from the Separation Date.  Upon the Separation, Executive shall be treated as having resigned from all positions Executive held with the Company and its subsidiaries, whether as a director, officer, manager or any other position.

2.    Executive's Acknowledgment of Consideration.  Executive specifically acknowledges that the obligations and payments set forth in Section 3(a) below were agreed to by the Parties upon entering into the Employment Agreement, and the other obligations and payments of the Company set forth in Section 3 hereof and the release of the Company granted in Section 7 hereof are being provided by the Company in consideration for the release granted by Executive in Section 7 hereof.

3.     Payments and Benefits Upon and After the Separation.

(a)    Accrued Salary, Expenses and Bonus.  The Company shall pay or cause to be paid 

to Executive all accrued but unpaid base salary.  In addition, promptly upon submission by Executive of her unpaid expenses incurred prior to the Separation Date as described in Article 5 of the Employment Agreement, reimbursement for such expenses shall be made.  The Company shall pay these amounts within ten (10) days of the Separation Date.  In addition, Executive shall be eligible to receive a pro-rated annual bonus for the year 2014, payable along with other management bonuses no later than March 15, 2015. Executive shall not be eligible for any bonus for the year 2015 or any subsequent year.

(b)     Severance. The severance to be paid to Executive shall be equal to an aggregate amount of One Million Three Hundred Twenty Nine Thousand Three Hundred Dollars ($1,329,300), which is sum of the following amounts: (1) Seven Hundred Eighty Seven Thousand Five Hundred Dollars ($787,500) (referred to herein as the “Base Severance Amount”); and (2) Five Hundred Forty One Thousand Eight Hundred Dollars ($541,800) (referred to herein as the “Bonus Amount”).  The Base Severance Amount shall be payable in accordance with the Company's regular salary payment schedule through February 29, 2016 and the Bonus Amount shall be paid in two equal annual installments on September 4, 2015 and September 4, 2016.  
(c)      Stock Options, Restricted Stock, Restricted Stock Units, Performance Shares and Performance Share Units.  All of Executive’s outstanding stock options that would have vested between the Separation Date and September 4, 2015 shall immediately vest on Separation Date, a list of these outstanding stock options is attached as Exhibit A.  In addition, all of Executive’s outstanding restricted stock units that would have vested between the Separation Date and September 4, 2015 shall vest on the Separation Date and shall be settled on December 27, 2014 as set forth in Exhibit A.  All of Executive’s vested stock options as of the Separation Date shall survive the Separation Date until the earlier of (i) September 4, 2015 or (ii) the expiration of the original terms of the vested stock options (the “Exercise Period”).  During the Exercise Period, Executive may exercise such vested stock options and any of such stock options which vest between the Separation Date and September 4, 2015 and any of such stock options which remain unexercised shall expire thereafter and be cancelled and terminated.  All unvested stock options, unvested restricted stock, unvested restricted stock units, unvested performance shares and unvested performance share units on the Separation Date are hereby cancelled and terminated. 
  
(d)    Other Benefits Payments.  The Company shall pay or make available to Executive all benefits described under Section 6.5.2(b) of the Employment Agreement with respect to "Health and Disability Coverage Continuation" described therein until the earlier of (i) February 29, 2016, conditioned upon Executive’s timely election of COBRA coverage; or (ii) the date  Executive becomes covered or eligible under any other group health plan not maintained by the Company or any of its subsidiaries.  Executive shall promptly advise the Company if she becomes covered or eligible under any other group health plan not maintained by the Company or any of its subsidiaries or affiliates. Any reimbursement that is taxable to the Executive shall be made not later than December 31 of the calendar year following the calendar year in which Executive or family member incurred the expense.

(e)     Tax Withholding.  The Company shall be entitled to withhold from any amounts otherwise payable hereunder to Executive any amounts required to be withheld in respect of federal, state or local taxes and Executive shall be responsible for all taxes on amounts received under or related to this Separation Agreement.
(f)    No Duty to Mitigate.  The payments contemplated herein shall not be subject to any duty of mitigation by Executive nor to offset for any income earned by Executive following Separation. 

(g)    Violation of Non-Competition Provisions.  In the event the Executive competes with the Company or any of its subsidiaries prior to September 4, 2015 as discussed in Section 6 below, 

Executive shall not be entitled to receive any additional payments from the Company or Company benefits described in this Section 3 above with respect to periods after the commencement of any such competitive activity or otherwise, and all such obligations shall be extinguished.

4.    Consulting Services; Cooperation. 

(a)    Consulting.  From the Separation Date until February 29, 2016 (the "Consulting Period"), the Company will retain Executive to act on a part-time basis as an independent contractor (for no additional compensation), as reasonably directed by the Company, in assisting the Company as determined in the discretion of the Chief Executive Officer. On the last day of the Consulting Period, Executive shall have a conference telephone call with the Chief Executive Officer, President or General Counsel of the Company to report her activities during the Consulting Period and answer any last questions that the General Counsel may have. Executive shall make Executive reasonably available during the Consulting Period, but the Parties agree that said commitment shall not exceed twenty-five (25) hours per month.  The Company expressly agrees that Executive shall only be liable for breach of Executive's obligations under this Section 4(a) to the extent Executive engages in gross negligence or willful misconduct with respect to those services and, in such event, the Company expressly agrees that it shall not be entitled to seek money damages in excess of $10,000 for all such breaches.

(b)    Reimbursement of Expenses; Independent Contractor Status.  The Company agrees to reimburse Executive for all reasonable out-of-pocket costs and expenses incurred in connection with the consulting services provided under this Section 4 upon presentation of appropriate documentation thereof.  In connection with the Executive's activities on behalf of the Company as an independent contractor pursuant to this Section 4, Executive acknowledges and agrees that she is acting as an independent contractor, engaged in the conduct of  her own separate business and is not a partner, joint venturer, an agent or employee of the Company for any purpose.   Executive also acknowledges and agrees that Executive has no right or authority or ability to enter into any contracts or assume any obligations or give any warranties or make any representations on behalf of the Company or to bind the Company in any way, and Executive will not convey or represent that she has any such authority. Executive agrees that, other than the consulting services described in this Section 4, Executive will not otherwise hold herself out as acting for or on behalf of the Company.  The Company shall indemnify and hold Executive harmless from any claim or liability arising from actions taken by Executive in good faith in performing the services required under this Section 4, including any costs of defense or attorney's fees; provided that (1) the Company shall have the right, at its expense, to assume or participate in the defense of any claim or action covered by such indemnity, (2) the Company shall not be liable for any settlement or compromise of any claim or action covered by such indemnity unless the Company has consented in writing to such settlement or compromise (which consent shall not be unreasonably withheld) and (3) the Company shall not be liable under this indemnity to the extent that it is determined in a final judgment by a court of competent jurisdiction or final arbitration proceeding that such claim or liability resulted from any acts or failures to act undertaken or omitted to be taken by Executive through her gross negligence or willful misconduct.

                        (c)   Cooperation.  Executive also agrees to  cooperate with the Company and its attorneys in any current or future litigation or claims involving the Company or any of its subsidiaries in which Executive might be a witness or for which Executive may have material information including, but not limited to, any and all meetings, depositions, arbitrations, mediations, trials, etc.  This cooperation obligation shall be limited to forty (40) hours per year and it shall expire on February 29, 2016.

5.     Confidential Information; Prohibitions on Certain Actions by Executive; Cooperation.

(a)    Disclosure of Separation Agreement.  In addition to and without limiting the provisions of Section 7.1 of the Employment Agreement, the Executive shall, and the Company agrees to cause each of the Chief Executive Officer, Chief Financial Officer, General Counsel and any executive and senior vice president of the Company (the "Designated Company Executives") to, keep this Separation Agreement, and the terms and subject matter hereof, strictly confidential, and no disclosure or public announcement will be made by any of them (except as required by applicable law, including but not limited to any securities laws and the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC")) with respect to this Separation Agreement (including the existence thereof, or the terms or subject matter hereof) without the prior agreement of the other Party; provided, however, that (i) the Company may issue a mutually agreed upon press release announcing Executive's departure and from time to time may comment on, or make public disclosures regarding, the Separation in a manner consistent with such press release; (ii) the Company and Executive may provide this Separation Agreement to and share such information with applicable gaming regulatory authorities; and (iii) the Company and Executive may share such information with their legal, tax and accounting advisors.  Executive agrees to direct all inquiries concerning Executive's employment with the Company to the Company's Chief Executive Officer or General Counsel.  Executive acknowledges that the Company intends to file this Separation Agreement with the SEC as an exhibit to its periodic reports filed with the SEC and to describe its terms in its SEC filings.  The Company acknowledges that Executive may disclose the existence of this Separation Agreement and any details related thereto to the extent that such information has been filed by the Company with the SEC or if the Company has otherwise released such information to the public.

(b)    Prohibition on Certain Actions by Executive.  Executive acknowledges that, given Executive's position with the Company prior to the Separation, Executive possesses substantial non-public information and other confidential information regarding the Company which has substantial economic value to the Company, including without limitation information relating to the Company's development plans, prospects, and financial, organizational, managerial, administrative, customer and marketing information regarding the Company, much of which the Company considers highly sensitive information.  Executive has agreed, pursuant to Section 7.1 of the Employment Agreement, to, among other things, not directly or indirectly disclose, divulge, communicate, use or otherwise disclose any such information.  In order to better ensure that such information is not used inappropriately by Executive, in addition to Executive's obligations under Section 7.1 of the Employment Agreement, which survives the Separation and the effectiveness of this Separation Agreement, for a period of  eighteen (18) months  from the Separation Date, Executive shall not, nor shall it permit any Affiliate or Associate (as such terms are hereinafter defined) or representative of Executive (such Affiliates, Associates and representatives, collectively and individually, the "Executive Affiliates") to, directly or indirectly:
(i)  effect or seek, offer or propose (whether publicly or otherwise) to effect, or cause or participate in or in any way assist any other person to effect or seek, offer or propose (whether publicly or otherwise) to effect or participate in:
                 (1)  any solicitation of proxies or written consents of stockholders, or conduct any other type of referendum (binding or non-binding) with respect to, or from the holders of, the common stock of the Company (the "Common Stock") (other than by voting her or its shares of Common Stock in a way that does not violate this Separation Agreement), or become a participant in any contested solicitation with respect to the Company, including without limitation relating to the removal or the election of directors of the Company or seek representation on the Company's Board of Directors or a change in the composition or size of the Company's Board of Directors; 

(2)  any acquisition of any securities (or beneficial ownership thereof) or assets of the Company or any of its subsidiaries (other than the exercise by Executive of stock options held by Executive as of the Separation Date, and excluding personal, passive investments by Executive in the Company’s securities from time to time),
(3)  any tender or exchange offer, merger or other business combination involving the Company or any of its subsidiaries, or
(4)  any recapitalization, restructuring, liquidation, dissolution or other extraordinary transaction with respect to the Company or any of its subsidiaries; or
           (ii)  form, join or participate in a partnership, limited partnership, limited liability company, syndicate, person or other group, including without limitation a group as defined under Section 13(d) of the Exchange Act (as defined below), with respect to the Common Stock, or otherwise assist, support or participate in any effort by any person with respect to the matters set forth in subparagraph (i) above, or deposit any shares of Common Stock in a voting trust or subject any shares of Common Stock to any voting agreement;
(iii)  otherwise act, alone or in concert with others, to seek to control or influence the management, Board of Directors or policies of the Company;
(iv)  publicly announce any intention to take any action, or take any action which might force the Company to make a public announcement, in either case,  regarding any of the types of matters set forth in subparagraph (i) above; or
(v)  enter into any discussions or arrangements with any person with respect to any of the foregoing (including the matters set forth in subparagraph (i) above).
Executive also agrees, on behalf of itself and its Affiliates, Associates and representatives, not to request the Company (or its directors, officers, employees or agents), directly or indirectly, to amend or waive any provision of this Section 5 (including this sentence).
(c)    For purposes of this Agreement:  the terms "Affiliate" and "Associate" shall have the respective meanings set forth in Rule 12b-2 promulgated by the SEC under the Securities Exchange Act of 1934, as amended (the "Exchange Act") (except that the 10% threshold in the definition of "Associate" shall be replaced with 1% and beneficial ownership under such definition shall include the right to acquire securities whether such right is exercisable immediately or only after the passage of time or only after satisfaction of conditions); and the terms "person" or "persons" shall mean any individual, corporation (including not-for-profit), general or limited partnership, limited liability or unlimited liability company, joint venture, estate, trust, association, organization or other entity of any kind or nature.

6.    Covenant Not to Compete. For a period of twelve months (12) after the Separation Date or until September 4, 2015 (but only six (6) months after the Separation Date in the case of an entity whose only competitive relationship with the Company is in the market in which the Company has its principal place of business but does not also own or manage a casino), Executive shall not, directly or indirectly, work for or provide services to or own an equity interest (except for a Permissible Investment as defined in the Employment Agreement) in any person, firm or entity engaged (directly or indirectly or through an investment in another entity) in the casino, gaming, card club or horseracing business which competes against the Company in any “market” in which the Company has its principal place of business or in which the Company owns (in whole or in part, directly or through an investment in another entity) or 

operates a casino, card club or horseracing facility. For purposes of this Separation Agreement, “market” shall be defined as the area within a 100 mile radius of the Company’s principal place of business or of any casino, card club or horseracing facility owned (in whole or in part, directly or through an investment in another entity) or operated or under construction by the Company.   

7.     Executive Release and Waiver.

(a)     Executive Release. Executive, for and on behalf of herself and each of her heirs, executors, administrators, personal representatives, successors and assigns (the "Releasors"), to the maximum extent permitted by law, hereby fully and forever releases, acquits and discharges the Company, together with its subsidiaries, parents and affiliates, and each of their past and present direct and indirect stockholders, directors, members, partners, officers, employees, attorneys, agents and representatives, and their heirs, executors, administrators, personal representatives, successors and assigns (collectively, the "Releasees"), from any and all claims, demands, suits, causes of action, liabilities, obligations, judgments, orders, debts, liens, contracts, agreements, covenants and causes of action of every kind and nature, whether known or unknown, suspected or unsuspected, concealed or hidden, vested or contingent, in law or equity, existing by statute, common law, contract or otherwise, which have existed, may exist or do exist, through and including the execution and delivery by Executive of this Separation Agreement, including, without limitation, any of the foregoing arising out of or in any way related to or based upon: 

(i)     Executive's application for and employment with the Company, her being an officer, director or employee of the Company or any of its subsidiaries, or the Employment Agreement or the Separation; 

(ii)     any and all claims in tort or contract, and any and all claims alleging breach of an express or implied, or oral or written, contract, policy manual or employee handbook;

(iii)    any alleged misrepresentation, defamation, interference with contract, intentional or negligent infliction of emotional distress, sexual harassment, negligence or wrongful discharge; or

(iv)    any federal, state or local statute, ordinance or regulation, including but not limited to the Age Discrimination in Employment Act of 1967, as amended, Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act and Women's Equity Act of 1991; Sections 1981 through 1988 of Title 42 of the United States Code; the Equal Pay Act of 1963, as amended; the Occupational Safety and Health Act of 1970; the Americans with Disabilities Act of 1990; the Family and Medical Leave Act of 1993; the Consolidated Omnibus Budget Reconciliation Act of 1985; the Vocational Rehabilitation Act of 1973; the Worker Adjustment Retraining and Notification Act of 1988; the Employee Retirement Income Security Act of 1974; the Fair Labor Standards Act and the National Labor Relations Act, as amended, and the Older Workers Benefit Protection Act.
                                     
(b)    Exceptions to Executive Release. Notwithstanding any other provision of this Separation Agreement to the contrary, the release by the Executive does not: (i) limit in any way the Executive's rights under this Separation Agreement and under the Surviving Employment Agreement Provisions, (ii) release any rights under applicable law which cannot be waived or released pursuant to any agreement, (iii) release any rights Executive may have to indemnification under the bylaws, indemnification agreement or governing documents of the Company or any of its subsidiaries or under applicable law, or (iv) release any rights Executive may have as a direct insured under the Company's directors' and officers' liability insurance policies.

(c)    Current or Pending Claims of any Kind and No Relief for Released Claims. Executive and Releasors have not and as of the date of this Separation Agreement will not have filed any civil action, suit, arbitration, administrative charge or legal proceeding against any Releasee, nor has the Executive or any Releasor assigned, pledged or hypothecated any claim as of the Separation Date to any person and no other person has any interest in the claims that Executive or any Releasor is releasing herein. Executive agrees that should any person or entity file or cause to be filed any civil action, suit, arbitration or other legal proceedings seeking equitable or monetary relief concerning any claim released by Executive, neither Executive nor any Releasor will seek or accept any personal relief from or as the result of any action, suit or arbitration or other legal proceeding.

(d)    Effect of Executive Release and Waiver.  Executive understands and intends that this Section 7 constitutes a general release of all claims except as otherwise provided in Section 7(b), above, and that no reference therein to a specific form of claim, statute or type of relief is intended to limit the scope of such general release and waiver.

(e)    Executive Waiver of Unknown Claims.  Executive or any Releasor may hereafter discover claims or facts in addition to or different than those which Executive now knows or believes to exist with respect to the subject matter of this Separation Agreement and which, if known or suspected at the time of entering into this Separation Agreement, may have materially affected this Separation Agreement and Executive’s decision to enter into it; nevertheless, Executive hereby waives any right, claim or cause of action that might arise as a result of such different or additional claims or facts.

(f)    ADEA Release.  Executive agrees and expressly acknowledges that this Separation Agreement includes a waiver and release of all claims which Executive has or may have under the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. § 621, et seq. ("ADEA").  The following terms and conditions apply to and are part of the waiver and release of ADEA claims under this Separation Agreement:
(i)    The waiver and release of claims under the ADEA contained in this Agreement do not cover rights or claims that may arise after the date on which Executive executes and delivers this Separation Agreement to the Company.
(ii)    This Separation Agreement involves consideration in addition to anything of value to which Executive is already entitled.
(iii)    Executive is advised to consult an attorney before signing this Separation Agreement.  If Executive executes this Separation Agreement prior to the expiration of the period specified in Section 7(f)(iv) below, Executive does so voluntarily and after having had the opportunity to consult with an attorney.
(iv)    Executive is granted twenty-one (21) days after Executive is presented with this Agreement to decide whether or not to sign this Separation Agreement.
(v)    Executive will have the right to revoke the waiver and release of claims under the ADEA within seven (7) days after the Separation Date and Executive has reaffirmed this Agreement.  This Section 7(f) shall not become effective or enforceable until that revocation period has expired.  Executive understands and agrees that Executive shall refund any consideration that has been previously paid to Executive, and shall receive no further consideration, if Executive revokes the waiver and release of ADEA claims.

8.    Company Release and Waiver.  The Company, on its behalf, and on behalf of all of its subsidiaries and its and their successors and assigns ("Company Parties"), intending to be legally bound, to the maximum extent permitted by law, hereby fully and forever releases, acquits, and discharges Executive, Executive’s heirs, executives, administrators, personal representatives, attorneys, agents, successors and permitted assigns, from any and all liabilities, obligations, judgments, orders, debts, liens, contracts, agreements, covenants and causes of action of every kind and nature, whether known or unknown, suspected or unsuspected, concealed or hidden, vested or contingent, in law or equity, existing by statute, common law, contract or otherwise, which have existed, may exist or do exist, up to and including the execution and delivery by Executive of this Separation Agreement, including, without limitation, any of the foregoing arising out of or in any way related to or based upon all causes of action, suits, debts, claims and demands whatsoever in law or in equity, which the Company ever had, now has, or hereafter may have, by reason of any matter, cause or thing whatsoever up to and including the execution and delivery by Executive of this Separation Agreement, and particularly, but without limitation of the foregoing general terms, any claims arising from or relating in any way to Executive's relationship with Company or its subsidiaries as an employee or director, the terms and conditions of that relationship, the termination of that relationship, and any claim that the Executive violated any provision of the Employment Agreement, including, but not limited to, any claims under any federal, state or local common law, statutory, or regulatory provision, now or hereafter recognized. This release is effective without regard to the legal nature of the claims raised and without regard to whether any such claims are based upon tort, equity, implied or express contract or discrimination of any sort. 

(a)    Scope of Company Release.  The Company expressly waives all rights afforded by any statute which limits the effect of a release with respect to unknown claims. The Company understands the significance of its release of unknown claims and its waiver of statutory protection against a release of unknown claims.

(b)    Exceptions to Company Release. Notwithstanding any other provision of this Separation Agreement to the contrary, the release by the Company does not: (i) limit in any way the Company's rights under this Separation Agreement and under the Surviving Employment Agreement Provisions, (ii) release any claim based on any other act or omission for which the Company would not have the power to indemnify Executive pursuant to Section 145 of the Delaware General Corporate Law, (iii) release any claim based on any rights under applicable law which cannot be waived or released pursuant to any agreement, or (iv) release any claim to any short-swing trading profits earned by Executive in violation of the provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended.

(c)    Current or Pending Claims of any Kind and No Relief for Released Claims. The Company and the other Company Parties have not and as of the date of this Separation Agreement will not have filed any civil action, suit, arbitration, administrative charge or legal proceeding against the Executive, nor have the Company or any of the other Company Parties assigned, pledged or hypothecated any claim as of the Separation Date to any person and no other person has any interest in the claims that the Company and the other Company Parties are releasing herein. The Company and the other Company Parties agree that should any person or entity file or cause to be filed any civil action, suit, arbitration or other legal proceedings seeking equitable or monetary relief concerning any claim released by the Company and the other Company Parties, the Company and the other Company Parties will not seek or accept any personal relief from or as the result of any action, suit or arbitration or other legal proceeding.

(d)    Effect of the Company's Release and Waiver. The Company and the other Company Parties understand and intend that this Section 8 constitutes a general release of all claims except as otherwise provided in Section 8(b), above, and that no reference therein to a specific form of claim, statute 

or type of relief is intended to limit the scope of such general release and waiver.

(e)    The Company's Waiver of Unknown Claims. The Company and the other Company Parties may hereafter discover claims or facts in addition to or different than those which they now know or believe to exist with respect to the subject matter of this Separation Agreement and which, if known or suspected at the time of entering into this Separation Agreement, may have materially affected this Separation Agreement and their decision to enter into it; nevertheless, the Company and the other Company Parties hereby waive any right, claim or cause of action that might arise as a result of such different or additional claims or facts.

9.     Return of Corporate Property.  Executive hereby covenants and agrees to immediately return all Company files, records and other property in Executive's possession.

10.    Non-Disparagement.  

(a)    Executive agrees that from and after the Separation Date, Executive will not disparage (or induce or encourage others to disparage) the Company, any of its affiliates or any of its or their officers, directors, executives, employees or stockholders.  As used herein, the term "disparage," includes, without limitation, comments or statement to the press, any of the Company's or its affiliates' officers, directors, executives, employees (as it relates to an employee’s employment with the Company), their or stockholders or any person with whom the Company or any of its affiliate has a business relationship which is designed to or would reasonably be expected to adversely affect in any manner, the conduct of any of the Company's or any of its affiliates' business or the business or personal reputations of the Company, its affiliates or any of the Company's or its affiliates' officers, directors, executives, employees or shareholders.

(b)       The Company shall not permit the Designated Company Executives to disparage (or induce or encourage others to disparage) Executive.  As used herein, the term "disparage," includes, without limitation, comments or statement to the press, any of the Company's or its affiliates' officers, directors, executives, employees, or stockholders or any person known to the Company to have a business relationship with Executive which is designed to or would reasonably be expected to adversely affect in any manner the conduct of Executive's business or the personal reputation of Executive.

11.     Remedies. 

(a)    The Parties hereby acknowledge and affirm that in the event of any breach by Executive or the Company of any of the covenants, agreements, and obligations hereunder, monetary damages would be inadequate to compensate the Parties. Accordingly, in addition to other remedies which may be available to the Parties hereunder or otherwise at law or in equity, the Parties shall be entitled to specifically enforce such covenants, obligations and restrictions through injunctive and/or equitable relief, in each case without the posting of any bond or other security with respect thereto. Should any provision hereof be adjudged to any extent invalid by any court or tribunal of competent jurisdiction, each provision shall be deemed modified to the minimum extent necessary to render it enforceable.

(b)    Executive hereby acknowledges and affirms that, in the event of a breach by Executive of any of Executive's covenants, agreements, and obligations under this Agreement, in addition to any other remedies which may be available to the Company hereunder or otherwise at law or in equity, the Company shall have the right to terminate any payments due hereunder and to recover of any payments previously made and rights previously granted hereunder.

12.    Acknowledgment of Voluntary Agreement. Executive acknowledges that Executive has entered into this Separation Agreement freely and without coercion, that Executive has been advised by the Company to consult with counsel of her choice, that Executive has had adequate opportunity to so consult, and that Executive has been given all time periods required by law to consider this Separation Agreement, including but not limited to the 21-day period required by the ADEA. 

13.     Complete Agreement; Inconsistencies. This Separation Agreement, including the Surviving Employment Agreement Provisions and any other documents referenced herein, constitute the complete and entire agreement and understanding of the Parties with respect to the subject matter hereof, and supersedes in its entirety any and all prior understandings, commitments, obligations and/or agreements, whether written or oral, with respect thereto; it being understood and agreed that this Separation Agreement and including the mutual covenants, agreements, acknowledgments and affirmations contained herein, is intended to constitute a complete settlement and resolution of all matters set forth in Sections 7 and 8 hereof. 

14.    409A Additional Tax.  In the event that any compensation with respect to the Executive's termination is "deferred compensation" within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations thereunder ("Section 409A"), payment of such compensation shall be delayed as required by Section 409A.  Such delay shall last six months from the Separation Date, except in the event of the Executive’s death.  Within 30 days following the end of such six-month period, or, if earlier, the Executive’s death, the Company will make a catch-up payment to the Executive equal to the total amount of such payments that would have been made during the six-month period but for this Section 14.  Wherever payments under this Separation Agreement are to be made in installments, each such installment shall be deemed to be a separate payment for purposes of Section 409A.
15.    Arbitration.  Except for a claim for injunctive relief, any controversy, dispute, or claim between the Parties arising out of this Separation Agreement shall be settled exclusively by arbitration pursuant to the provisions of Article 8 of the Employment Agreement, and such provision is incorporated herein by this reference.
16.     Governing Law. All issues and questions concerning the construction, validity, enforcement and interpretation of this Separation Agreement shall be governed by, and construed in accordance with, the laws of the State of Nevada, without giving effect to any choice of law or conflict of law rules or provisions that would cause the application hereto of the laws of any jurisdiction other than the State of Nevada. In furtherance of the foregoing, the internal law of the State of Nevada shall control the interpretation and construction of this Separation Agreement, even though under any other jurisdiction's choice of law or conflict of law analysis the substantive law of some other jurisdiction may ordinarily apply.

17.    Notices.  All notices, requests, demands and other communications to be given under this Separation Agreement shall be in writing and shall be deemed to have been duly given on the date of service, if personally served on the Party to whom notice is to be given, or 48 hours after mailing, if mailed to the Party to whom notice is to be given by certified or registered mail, return receipt requested, postage prepaid, and properly addressed to the Party at Executive’s address set forth as follows or any other address that any Party may designate by written notice to the other Parties:
To Executive:        Michelle Shriver
at the current address on file with 
the Company.

                                    
To the Company:    Pinnacle Entertainment, Inc.    
3980 Howard Hughes Parkway
Las Vegas, Nevada 89169
Attn:  General Counsel 
Telephone:  (702) 541-7777
Facsimile:  (702) 541-7773

18.     Severability. The invalidity or unenforceability of any word, phrase, clause, section or other provision of this Separation Agreement, in whole or in part, shall not affect the validity or enforceability of any word, phrase, clause, section or other provision of this Separation Agreement, in whole or in part, which shall otherwise remain in full force and effect. Moreover, the invalidity or unenforceability of any word, phrase, clause, or other provision of this Separation Agreement under any particular law or in any particular jurisdiction shall not affect the validity or enforceability of the same or any other word, phrase, clause, or other provision of this Separation Agreement under any other law or in any other jurisdiction.

19.     Counterparts. This Separation Agreement may be executed in separate counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

20.     Successors and Assigns. The Parties' obligations hereunder shall be binding upon their successors and permitted assigns. The Parties' rights and the rights of the other Releasees shall inure to the benefit of, and be enforceable by, any of the Parties' and Releasees' respective successors and permitted assigns. Executive may not assign any of Executive’s rights and obligations under this Separation Agreement, except as may be agreed to in writing by the Company.  The Company may assign all rights and obligations of this Separation Agreement to any successor in interest to the assets of the Company.  In the event that the Company is dissolved, all obligations of the Company under this Separation Agreement shall be provided for in accordance with applicable law.

21.     Amendments, Waivers and Delay. The failure or delay on the part of the Company, or Executive to exercise any right or remedy, power or privilege hereunder shall not operate as a waiver thereof.  No amendment to or waiver of this Separation Agreement or any of its terms shall be binding upon any Party unless consented to in writing by such Party.  

22.     Headings. The headings of the sections and subsections hereof are for purposes of convenience only, and shall not be deemed to amend, modify, expand, limit or in any way affect the meaning of any of the provisions hereof. 

23.    Construction.  All terms and definitions contained herein shall be construed in such a manner that shall give effect to the fullest extent possible to the express or implied intent of the Parties hereby.

24.     Attorneys' Fees.  In the event a Party commences an action to enforce the terms of this Separation Agreement or for damages for a breach arising out of or relating to this Separation Agreement, the prevailing Party shall be entitled to an award of reasonable attorneys' fees.

25.    Counsel.  Executive has been advised by the Company that Executive should consider seeking the advice of counsel in connection with the execution of this Separation Agreement and 

Executive has had an opportunity to do so. Executive has read and understands this Separation Agreement, and has sought the advice of counsel to the extent she has determined appropriate.      
26.    Community Property.  Without prejudice to the actual rights of the spouses as between each other, for all purposes of this Separation Agreement, the Executive shall be treated as agent and attorney-in-fact for that interest held or claimed by Executive’s spouse with respect to this Separation Agreement.  This appointment is coupled with an interest and is irrevocable.

[signatures appear on following page]

IN WITNESS WHEREOF, the Parties have executed this Separation Agreement effective as of the date of the first signature affixed below or as otherwise provided in this Separation Agreement.

DATED:  September 4, 2014

PINNACLE ENTERTAINMENT, INC.

By: /s/ John A. Godfrey
John A. Godfrey
Executive Vice President, General Counsel and Secretary 

READ CAREFULLY BEFORE SIGNING

I have read this Separation Agreement and have had the opportunity to consult legal counsel and my own tax advisors prior to my signing of this Separation Agreement.  I understand that by executing this Separation Agreement, I will relinquish any right or demand I may have against the Releasees or any of them, unless otherwise provided in this Separation Agreement and/or the surviving terms of my Employment Agreement.

DATED: September 4, 2014

By: /s/ Michelle Shriver
       Michelle Shriver

      

EXHIBIT A

List of Options that Vest on the Separation Date 

	
							
	Grant Type
	Grant Date
	Number of Shares Originally Granted
	Number of Shares that Vest on September 4, 2014
	Exercise Price
	Vesting Date 
	Term

	Option
	08/13/2013
	40,000
	10,000
	$21.96
	09/04/2014
	08/13/2020

	Option
	05/20/2014
	21,540
	5,385
	$23.55
	09/04/2014
	05/20/2021

List of Restricted Stock Units that Vest on the Separation Date

	
							
	Grant Type
	Grant Date
	Number of Shares Originally Granted
	Number of Shares that Vest on Separation Date
	Exercise Price
	Settlement Date 
	Term

	RSUs
	08/13/2013
	16,000
	4,000
	N/A
	12/27/2014
	N/A

	RSUs
	05/20/2014
	4,600
	1,150
	N/A
	12/27/2014
	N/AExhibit 10.5 09.30.2014

Exhibit 10.5
Execution Version
    
FIRST AMENDMENT TO THE 
FOURTH AMENDED AND RESTATED SHAREHOLDERS AGREEMENT 

This FIRST AMENDMENT TO THE FOURTH AMENDED AND RESTATED SHAREHOLDERS AGREEMENT (this “Amendment”), dated as of September 5, 2014, is by and among (i) Asian Coast Development (Canada) Ltd., a British Columbia corporation (the “Company”), (ii) Harbinger II S.à r.l., Blue Line ACDL, Inc., Breakaway ACDL, Inc., Credit Distressed Blue Line Master Fund, Ltd., Global Opportunities Breakaway Ltd., Harbinger China Dragon Intermediate Fund, L.P., (iii) PNK Development 18, LLC, a Delaware limited liability company and a subsidiary of Pinnacle Entertainment, Inc., a Delaware corporation (such subsidiary, “Pinnacle”) and (iv) PNK Development 31, LLC, a Delaware limited liability company and a subsidiary of Pinnacle Entertainment, Inc., and is being entered into in order to amend the Fourth Amended and Restated Shareholders Agreement, dated as of June 11, 2014, by and among the aforementioned parties (the “Shareholders Agreement”).  

WHEREAS:
		
	A.
	The Company, Harbinger II S.à r.l., Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situations Fund, L.P. propose to enter into a Loan Agreement (the “September 2014 Loan Agreement”); and

		
	B.
	The parties wish to amend the Shareholders Agreement to, inter alia, provide Pinnacle with lookback protection with respect to loan advances made by or for and behalf of Harbinger II S.à r.l. to the Company under the September 2014 Loan Agreement.

NOW THEREFORE, in consideration of the mutual covenants and promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
1.    Definitions.  Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Shareholders Agreement.
2.    Amendments to the Shareholders Agreement.  
		
	(a)
	Section 6.1(a)(vi) of the Shareholders Agreement is hereby deleted in its entirety and replaced with the following:

“(vi) issue or sell any capital stock of any class or series or any other securities of the Company, or issue or grant any warrants, rights or options, or securities that are exchangeable for, or convertible into, shares of the Company’s capital stock, except for security issuances resulting from rights granted as of the date hereof or contemplated herein (including without limitation, (A) the grant or exercise of (1) the Pinnacle Option, (2) the Backstop Warrants, (3) the May 2013 Minimum Warrants, (4) the Alternate May 2013 Warrants, (5) the November 2013 Warrants, (6) the Alternate November 2013 Warrants, (7) the Alternate November 2013 Common Share Warrants, (8) the January 2014 Warrants, (9) the Alternate January 2014 Warrants, (10) the Alternate January 2014 Common Share Warrants, (11) the April 2014 Warrants, (12) the Alternate April 2014 Warrants (13) the Alternate April 2014 Common Share Warrants, (14) the Pinnacle Backstop Warrants or Alternate Backstop Warrants, (15) the September 2014 Warrants, or (16) the Alternate September 2014 Warrants,  (B) top-up issuances pursuant to the 2011 Harbinger Subscription Agreement or the Pinnacle Subscription Agreement, (C) the exercise of options or warrants outstanding as of the date hereof), or (D) the conversion of convertible securities outstanding as of the date hereof);”

		
	(b)
	Section 6.7 (Related Provisions) of the Shareholders Agreement is hereby deleted in its entirety and replaced with the following:

“(a)     In case the Company shall propose (i) to pay any dividend, make any interest payment or other payment or distribution in respect of any Additional Backstop Warrants, Backstop Common Shares, May 2013 Minimum Warrants, May 2013 Common Shares, November 2013 Advances, November 2013 Warrants, November 2013 Common Shares, January 2014 Advances, January 2014 Warrants, January 2014 Common Shares, April 2014 Advances, April 2014 Warrants, April 2014 Common Shares, September 2014 Advances, September 2014 Warrants or Common Shares, in cash or in any form other than additional Securities (excluding interest accruals contemplated by the November 2013 Loan Agreement, the January 2014 Loan Agreement, the April 2014 Loan Agreement and the September 2014 Loan Agreement), (ii) any repurchase, retirement, redemption, prepayment, refinancing, exchange, conversion or other similar action with respect to any Additional Backstop Warrants, Backstop Common Shares, May 2013 Minimum Warrants, May 2013 Common Shares, November 2013 Advances, November 2013 Warrants, November 2013 Common Shares, January 2014 Advances, January 2014 Warrants, January 2014 Common Shares, April 2014 Advances, April 2014 Warrants, April 2014 Common Shares, September 2014 Advances, September 2014 Warrants or Common Shares, (iii) to effect any reclassification or capital reorganization, (iv) to effect any consolidation, merger or sale, organic change, transfer or other disposition of all or substantially all of its property, assets or business, or (v) to effect the liquidation, dissolution or winding up of the Company, then in each such case, at least twenty (20) Business Days before such action, the Company shall deliver to Pinnacle a written notice of such proposed action, which shall specify the date on which a record is to be taken for the purposes of such dividend, interest or other payment or distribution or rights, or the date on which such repurchase, retirement, redemption, prepayment, refinancing, exchange, conversion or other similar action, reclassification, reorganization, consolidation, merger, sale, organic change, transfer, disposition, liquidation, dissolution, or winding up is to take place and the date of participation therein by the holders of any Additional Backstop Warrants, Backstop Common Shares, May 2013 Minimum Warrants, May 2013 Common Shares, November 2013 Advances, November 2013 Warrants, November 2013 Common Shares, January 2014 Advances, January 2014 Warrants, January 2014 Common Shares, April 2014 Advances, April 2014 Warrants, April 2014 Common Shares, September 2014 Advances, September 2014 Warrants or Common Shares, if any such date is to be fixed, and shall also set forth such facts with respect thereto as shall be reasonably necessary to indicate the effect of such action on any Additional Backstop Warrants, Backstop Common Shares, May 2013 Minimum Warrants, May 2013 Common Shares, November 2013 Advances, November 2013 Warrants, November 2013 Common Shares, January 2014 Advances, January 2014 Warrants, January 2014 Common Shares, April 2014 Advances, April 2014 Warrants, April 2014 Common Shares, September 2014 Advances, September 2014 Warrants or Common Shares.
(b)    In case Harbinger or its Entity Affiliates shall propose to sell, transfer or otherwise dispose of all or a portion of its Additional Backstop Warrants, Backstop Common Shares, May 2013 Minimum Warrants, May 2013 Common Shares, November 2013 Advances, November 2013 Warrants, November 2013 Common Shares, January 2014 Advances, January 2014 Warrants, January 2014 Common Shares, April 2014 Advances, April 2014 Warrants, April 2014 Common Shares, September 2014 Advances, or September 2014 Warrants, then in each such case, at least twenty-five (25) Business Days before such action, Harbinger shall deliver to Pinnacle a written notice of such proposed action.  This twenty-five (25) Business Day notice period shall run concurrently with the time periods set forth in the various Transfer related provisions set forth in Article 3. 
(c)    The Company shall take all such action as may reasonably be required to give effect to any purchase and assignment undertaken in accordance with Sections 6.5, 6.6, 6.9, 6.10, 6.11, 6.11.1, 6.12, 6.13 or 6.14 of the relevant Additional Backstop Warrants, the Backstop Common Shares, the relevant May 2013 Minimum Warrants, the May 2013 Common Shares, the November 2013 Loan Agreement, the relevant November 2013 Advances, November 2013 Warrants, the November 2013 Common Shares, the January 2014 Loan Agreement, the relevant January 2014 Advances, January 2014 Warrants, the January 2014 Common Shares, the April 2014 Loan Agreement, the relevant April 2014 Advances, April 2014 Warrants, the April 2014 Common Shares, the September 2014 Loan Agreement, the relevant September 2014 Advances and the September 2014 Warrants.

(d)    For purposes of clarity, Pinnacle’s right to acquire Backstop Assets, May 2013 Assets, November 2013 Assets, November 2013 Common Share Assets, January 2014 Assets, January 2014 Common Share Assets, April 2014 Assets, April 2014 Common Share Assets and September 2014 Assets from Harbinger and its Entity Affiliates shall be governed by Section 6.5, Section 6.6, Section 6.7, Section 6.9, Section 6.10, Section 6.11, Section 6.11.1, Section 6.12, Section 6.13, Section 6.14 and not Section 6.2 of this Agreement.”
		
	(c)
	The following section is added to Article 6 (Consent Rights and Additional Covenants) of the Shareholders Agreement as the new section 6.11.1 (September 2014 Loan Agreement Lookback Protection):

“Section 6.11.1 September 2014 Loan Agreement Lookback Protection
(a)During the September 2014 Lookback Period, Pinnacle (together with its Entity Affiliates) shall have the right to require each September 2014 Subscriber to assign to Pinnacle up to the September 2014 Proportionate Amount of each September 2014 Advance made by, or for and on behalf of, such September 2014 Subscriber as calculated below in respect of the applicable September 2014 Advance:

(i)up to but not including the First September 2014 Anniversary of the applicable September 2014 Advance, Pinnacle (together with its Entity Affiliates) shall have the right, by delivering written notice to the Harbinger Agent, to require each September 2014 Subscriber in respect of such September 2014 Advance to assign to Pinnacle up to the September 2014 Proportionate Amount of such September 2014 Advance made by, or for and on behalf of, such September 2014 Subscriber; and
(ii)from the First September 2014 Anniversary of such September 2014 Advance up to and including the Third September 2014 Anniversary of such September 2014 Advance, Pinnacle (together with its Entity Affiliates) shall have the right, by delivering written notice to the Harbinger Agent, to require each September 2014 Subscriber in respect of such September 2014 Advance to assign to Pinnacle up to the Sliding Proportionate September 2014 Amount of such September 2014 Advance made by, or for and on behalf of, such September 2014 Subscriber.  For purposes of this subsection, the “Sliding Proportionate September 2014 Amount” in respect of any particular September 2014 Advance means an amount determined by multiplying (A) the September 2014 Proportionate Amount in respect of such September 2014 Advance by (B) the quotient obtained by dividing (1) the total number of days between (and including) (x) the date of exercise of Pinnacle’s right to purchase the Sliding Proportionate September 2014 Amount in respect of such September 2014 Advance and (y) the Third September 2014 Anniversary of such September 2014 Advance, by (2) seven hundred and thirty (730).  Such adjustment to such September 2014 Proportionate Amount in arriving at the Sliding Proportionate September 2014 Amount in respect of such September 2014 Advance shall be referred to as the “Sliding September 2014 Adjustment” in respect of such September 2014 Advance.

(b)Solely for purposes of this Section 6.11.1:

(i)the “September 2014 Proportionate Amount” applicable to an assignment to Pinnacle and its Entity Affiliates pursuant to this Section 6.11.1 of a portion of any particular September 2014 Advance made by, or for and on behalf of, an September 2014 Subscriber shall equal:

(A)twenty-seven percent (27%), multiplied by 

		
	(B)
	the amount of such September 2014 Advance, net of any repayments or prepayments thereon.

(c)In the event of a sale, transfer or other disposition by an September 2014 Subscriber of all or any portion of the September 2014 Advances, the September 2014 Warrants or all or any portion of its commitment under the September 2014 Loan Agreement to make an September 2014 Advance (each September 2014 Advance, each September 2014 Warrant, each commitment under the September 2014 Loan Agreement to make an September 2014 Advance and any September 2014 PIK Securities are each referred to herein as an 

“September 2014 Asset” and, collectively, as the “September 2014 Assets”) to an unaffiliated third party which would cause such September 2014 Subscriber to hold less than twenty-seven percent (27%) of its original interest in any September 2014 Asset (the “Minimum September 2014 Retained Original Interest”), such transferee shall, as a condition to the completion of such sale, transfer or other disposition, assume the obligations of such September 2014 Subscriber hereunder, provided, however, only in respect of such portion of the percentage of the September 2014 Asset so acquired by the transferee as relates to the shortfall in such September 2014 Subscriber’s Minimum September 2014 Retained Original Interest; provided, however that in the event of a sale, transfer or other disposition by an September 2014 Subscriber of all or any portion an September 2014 Asset to Harbinger or any of its Entity Affiliates, such transferee shall, as a condition to the completion of such sale, transfer or other disposition, assume the obligations of an September 2014 Subscriber hereunder related to the percentage of the September 2014 Asset so acquired;  provided, further that the required assumption of the obligations of an September 2014 Subscriber under this Section 6.11.1(c) shall not apply in the case of a sale, transfer or other disposition by an September 2014 Subscriber to Pinnacle or its Entity Affiliates.  An assumption of the obligations by a transferee as set forth in and required by this Section 6.11.1(c) shall be in writing in a form reasonably satisfactory to Pinnacle.  For the avoidance of doubt, the obligation of a transferor to ensure that a transferee of an September 2014 Asset becomes subject to this Section 6.11.1(c) and assumes the obligations hereunder relating to such September 2014 Asset shall apply to successive sales, transfers and other dispositions of such September 2014 Asset and to subsequent transferors and transferees thereof, except in the case of a transfer to Pinnacle or its Entity Affiliates.  

(d)The purchase price payable by Pinnacle (or its Entity Affiliates purchasing a part of an September 2014 Advance) to an September 2014 Subscriber for an assignment of a part of an September 2014 Advance under this Section 6.11.1 shall be an amount equal to one hundred percent (100%) of the original principal amount of the portion of such September 2014 Advance being assigned, net of any repayments or prepayments received by such September 2014 Subscriber as of immediately prior to the effective time of such assignment to Pinnacle or its Entity Affiliates.  Such assignment shall exclude any and all accrued but unpaid interest on the original principal amount of such September 2014 Advance so assigned up to (but not including) the date of such assignment, which excluded interest shall continue to be payable by the Company to that September 2014 Subscriber.

(e)The parties shall consummate such assignment (including the assignments of September 2014 Warrants contemplated by Section 6.11.1(f) and of September 2014 PIK Securities contemplated by Section 6.11.1(g) by an September 2014 Subscriber to Pinnacle on a Business Day within fifteen (15) Business Days (or such shorter time as may be reasonably necessary under the circumstances, to the extent commercially practicable for Harbinger, but in any event, all legal and economic rights and benefits in connection with Pinnacle's rights hereunder shall be preserved as if such assignment had been so consummated in the event such assignment cannot be consummated within such shorter time) of the giving of such written notice of exercise by Pinnacle to the Harbinger Agent.  The assigning September 2014 Subscriber or Pinnacle shall deliver to the Company the fully executed document(s) pursuant to which such assignment was effected, together with all information reasonably required by the Company to determine the appropriate future payments to be made by the Company to the assigning September 2014 Subscriber and Pinnacle in respect of such September 2014 Advance.

(f)The right of Pinnacle (together with its Entity Affiliates) to require an assignment from each September 2014 Subscriber of a part of any particular September 2014 Advance made by, or for and on behalf of, such September 2014 Subscriber pursuant to this Section 6.11.1 shall include the right of Pinnacle to acquire from each such September 2014 Subscriber on the date of such assignment, at no additional cost to Pinnacle, subject to compliance with Applicable Laws, the September 2014 Warrants issued to such September 2014 Subscriber in respect of such September 2014 Advance  covering the number of Common Shares equal to:

		
	(i)
	(A)     the number of Common Shares covered by such September 2014 Warrant, in the aggregate, originally issued to such September 2014 Subscriber (as such number of Common Shares may be adjusted pursuant to the terms of such September 2014 Warrant), multiplied by 

		
	(B)
	twenty-seven percent (27%);

(ii)multiplied by (1) the portion of such September 2014 Advance acquired by Pinnacle (and/or its Entity Affiliates) from such September 2014 Subscriber, divided by (2) the maximum portion of such September 2014 Advance that Pinnacle (and its Entity Affiliates) are entitled to acquire from such September 2014 Subscriber pursuant to Section 6.11.1(a) as of the date of such assignment (and, for the avoidance of doubt, Pinnacle and its Entity Affiliates shall remain entitled to acquire such September 2014 Warrants covering their full entitlement of Common Shares notwithstanding any repayment or prepayment of the associated September 2014 Advance);

(iii)multiplied by the Sliding September 2014 Adjustment in respect of such September 2014 Advance, if and as applicable;
provided, however, that, such September 2014 Warrants shall be assigned to Pinnacle and/or its Entity Affiliates notwithstanding that such assigned September 2014 Warrants have been exercised by the relevant September 2014 Subscriber in part prior to such assignment, and Pinnacle and/or its Entity Affiliates shall have the benefit of all remaining rights of such assigned September 2014 Warrants.
For the avoidance of doubt, any sales, transfers or other dispositions by Harbinger of any September 2014 Advances or September 2014 Warrants to any Persons other than Pinnacle and its Entity Affiliates shall not reduce the amount of September 2014 Warrants that Pinnacle or its Entity Affiliates are entitled to acquire pursuant to this Section 6.11.1(f).

(g)The right of Pinnacle (together with its Entity Affiliates) to purchase a part of each September 2014 Advance together with a portion of the associated September 2014 Warrants under this Section 6.11.1 shall include the right of Pinnacle (together with its Entity Affiliates) to acquire from each September 2014 Subscriber in respect of an September 2014 Advance, at the time of Pinnacle’s purchase of a portion of such September 2014 Advance and associated September 2014 Warrants, at a purchase price and on the timing set forth below, all Securities (other than the September 2014 Warrants themselves, which shall be included in the assignment of such September 2014 Advance and other than Common Shares issued upon exercise of the September 2014 Warrants not in contravention of the terms of this Agreement) received by, or accrued in favour of, each September 2014 Subscriber in respect of such September 2014 Advance or the associated September 2014 Warrants as dividends (including, without limitation, accrued but undeclared dividends) or other payments or distributions (excluding interest (whether paid or accrued and unpaid) on such September 2014 Advance up to (but not including) the date of such purchase by Pinnacle (or its Entity Affiliates)) since the time of completion of such September 2014 Advance (the “September 2014 PIK Securities”). 

(h)Pinnacle shall pay the consideration for the September 2014 PIK Securities in respect of each September 2014 Advance for which Pinnacle has exercised its right pursuant to Section 6.11.1(g) by issuing one or more promissory notes to each September 2014 Subscriber in respect of such September 2014 Advance :

(i)with an aggregate principal amount equal to the value of such September 2014 PIK Securities;

(ii)bearing no interest;

(iii)with the term (with payment in full being due on the last day of the term) being a period of time equal to the earliest to occur of (A) five (5) years, (B) a bona fide sale by Pinnacle of such September 2014 PIK Securities to an unaffiliated third party, or any other liquidity event involving such September 2014 PIK Securities in which cash is received in full satisfaction of such September 2014 PIK Securities (including, but not limited to, a redemption in full for cash of such September 2014 PIK Securities by the Company), or (C) a 

bona fide sale by each of the September 2014 Subscribers of all, but not less than all, of the September 2014 Advances related to the September 2014 PIK Securities to an unaffiliated third party, or any other liquidity event involving such September 2014 Advances in which cash is received in full satisfaction of such September 2014 PIK Securities (including, but not limited to, a repayment in full for cash of such September 2014 Advances by the Company and termination of any further obligation to lend with respect thereto); and

(iv)which shall be secured by a first priority security interest, in form and substance reasonably satisfactory to Harbinger for and behalf of each of the September 2014 Subscribers, in such September 2014 PIK Securities.

(i)Each September 2014 Subscriber agrees, upon any exercise by Pinnacle or its Entity Affiliates of their right to acquire any September 2014 Assets of such September 2014 Subscriber, to transfer and assign good and marketable title to the relevant September 2014 Assets held by such September 2014 Subscriber to Pinnacle or its Entity Affiliates free and clear of any Liens.  In the event that upon such exercise, in Pinnacle's reasonable determination, an September 2014 Subscriber is not able to assign good and marketable title to any relevant September 2014 Asset to Pinnacle or its Entity Affiliates free and clear of Liens (such subscriber in such case, a “Proposed September 2014 Subscriber Transferor”), then in addition to all other remedies at law and/or in equity that Pinnacle and/or its Entity Affiliates may have against such Proposed September 2014 Subscriber Transferor, upon Pinnacle's written notice to the Company (which notice shall state that Pinnacle had attempted to acquire September 2014 Assets from such Proposed September 2014 Subscriber Transferor identified in such notice in accordance with Section 6.11.1(a) and Section 6.11.1(f)), the following transactions shall be consummated so as to afford Pinnacle, to the maximum extent possible, the full benefit of its rights under Section 6.11.1:

(i)Pinnacle and/or its Entity Affiliates shall lend and the Company shall borrow from Pinnacle and/or its Entity Affiliates, on substantially the same terms and conditions as the September 2014 Advance (including with respect to maturity, interest rate and other terms), a principal amount equal to the portion of the Payment Amount (as such term is defined in the September 2014 Loan Agreement) of the September 2014 Advance that Pinnacle and/or its Entity Affiliates sought to acquire from such Proposed September 2014 Subscriber Transferor (such loan, an “Alternate September 2014 Loan”), which shall be recorded as set forth in the September 2014 Loan Agreement and have the same effect as if  Pinnacle or such Entity Affiliate had received an assignment of a portion of an September 2014 Advance from the Proposed September 2014 Subscriber Transferor as the September 2014 Subscriber under Section 6.11.1(a);

(ii)the Company agrees to apply all the cash proceeds of the Alternate September 2014 Loan promptly to prepay to such Proposed September 2014 Subscriber Transferor its respective portion of such September 2014 Advance that Pinnacle and/or its Entity Affiliates had intended to acquire from such Proposed September 2014 Subscriber Transferor;

(iii)the holder of an Alternate September 2014 Loan shall be entitled to its proportionate interest in all of the benefits and security afforded to the September 2014 Subscribers under and pursuant to the September 2014 Loan Agreement.  The Company, Harbinger and each of Harbinger’s relevant Entity Affiliates agree to execute and deliver all instruments and agreements, and to consent to such registrations, as may be required in the opinion of Pinnacle, acting reasonably, to properly entitle Pinnacle to all of the rights it would otherwise have been entitled to receive as if the September 2014 Assets referable to the September 2014 Advance, as replaced by the Alternate September 2014 Loan, were assigned to Pinnacle by such Proposed September 2014 Subscriber Transferor;

(iv)the number of Common Shares covered by the associated September 2014 Warrant of such Proposed September 2014 Subscriber Transferor shall be automatically reduced, and without requirement of any action on the part of such Proposed September 2014 Subscriber Transferor, by the number of Common Shares that would have been covered by such September 2014 Warrant (or portion thereof) assigned to Pinnacle and/or its Entity Affiliates pursuant to Section 6.11.1(f), and the Company shall notify such Proposed September 2014 Subscriber Transferor of the calculation of such reduction, which calculation shall be conclusive absent manifest error;

(v)the Company agrees to and shall issue a warrant or warrants (each, an “Alternate September 2014 Warrant”) to Pinnacle or its Entity Affiliates, in form and substance substantially identical to the form of September 2014 Warrant issued to such Proposed September 2014 Subscriber Transferor (excluding any of the provisions as shall not be applicable to Pinnacle and its Entity Affiliates including, without limitation, any restriction on exercise and any automatic reduction in the shares covered by such warrant relating to PNK Prepayments) covering the number of Common Shares covered by the September 2014 Warrants Pinnacle and/or its Entity Affiliates sought to acquire from such Proposed September 2014 Subscriber Transferor under Section 6.11.1(f).  An Alternate September 2014 Warrant shall be an September 2014 Warrant for all purposes of this Agreement as if Pinnacle or such Entity Affiliate had received an assignment of all or a portion of an September 2014 Warrant from an September 2014 Subscriber under Section 6.11.1(f); and

(vi)for greater clarity, the references to “Proposed September 2014 Subscriber Transferor” in this Section 6.11.1(i) shall not include Pinnacle and/or its Entity Affiliates. 

(j)Each September 2014 Subscriber agrees that, during the September 2014 Lookback Period, it shall not exercise any September 2014 Warrant associated with a particular September 2014 Advance it holds with respect to more than:

(i)the number of such September 2014 Subscriber’s original Common Share Entitlement then exercisable under such September 2014 Warrant (as adjusted pursuant to the terms of such September 2014 Warrant); minus

(ii)the product of:

(A)twenty-seven percent (27%) of such September 2014 Subscriber’s original Common Share Entitlement then exercisable under such September 2014 Warrant (as adjusted pursuant to the terms of such September 2014 Warrant); multiplied by 

(B)the Sliding September 2014 Adjustment in respect of such September 2014 Advance, if and as applicable, 
(the “September 2014 Unreserved Lookback Amount”).
Any attempted exercise by such September 2014 Subscriber of any portion of such September 2014 Warrant as relates to more than the September 2014 Unreserved Lookback Amount shall be null and void, of no force or effect whatsoever, and shall not be honoured by the Company.

(k)For purposes of this Section 6.11.1, in the event that an September 2014 Subscriber assigns or transfers all or any portion of its commitment under the September 2014 Loan Agreement to make an September 2014 Advance (other than to Pinnacle), the assigning or transferring September 2014 Subscriber and the assignee or transferee of such commitment (other than Pinnacle) shall be treated as one and the same September 2014 Subscriber, including without limitation for purposes of the calculations contemplated by this Section 6.11.1 

and for purposes of the obligation to transfer September 2014 Assets to Pinnacle should Pinnacle exercise its right to acquire September 2014 Assets as contemplated herein.”

		
	(d)
	Sections 6.5(e), 6.6(e), 6.9(e), 6.10(e), 6.11(e), 6.12(e), 6.13(e) and 6.14(e) of the Shareholders Agreement are each amended by inserting the parenthetical “(or such shorter time as may be reasonably necessary under the circumstances, to the extent commercially practicable for Harbinger, but in any event, all legal and economic rights and benefits in connection with Pinnacle's rights hereunder shall be preserved as if such assignment had been so consummated in the event such assignment cannot be consummated within such shorter time)” after the phrase “on a Business Day within fifteen (15) Business Days” and before the phrase “of the giving of such written notice of exercise by Pinnacle to the Harbinger Agent” in each of such subsections.

		
	(e)
	The following definitions are added to section 7.1 (Certain Definitions) of the Shareholders Agreement in the appropriate alphabetical order:

“Alternate September 2014 Loan” has the meaning set forth in Section 6.11.1(i)(i).
“Alternate September 2014 Warrant” has the meaning set forth in Section 6.11.1(i)(v).
“First September 2014 Anniversary” means, with respect to any particular September 2014 Advance, the first anniversary of the date of completion of such September 2014 Advance.
“Minimum September 2014 Retained Original Interest” has the meaning set forth in Section 6.11.1(c).
“Proposed September 2014 Subscriber Transferor” has the meaning set forth in Section 6.11.1(i).
“September 2014 Advance” means a loan advance completed by an September 2014 Subscriber to the Company pursuant to the terms of the September 2014 Loan Agreement.
“September 2014 Asset” has the meaning set forth in Section 6.11.1(c).
“September 2014 Loan Agreement” means the Loan Agreement dated September ___, 2014, by and among the Company and the September 2014 Subscribers, as the same may be amended, restated, supplemented or otherwise modified from time to time.
“September 2014 Lookback Period” means, in respect of any particular September 2014 Advance, the period commencing on the date of completion of such September 2014 Advance, and ending on the Third September 2014 Anniversary of such September 2014 Advance, provided that such period as it applies to each September 2014 Subscriber shall be extended by any Funding Default Period referable to such September 2014 Subscriber.
“September 2014 PIK Securities” has the meaning set forth in Section 6.11.1(g).
“September 2014 Proportionate Amount” has the meaning set forth in Section 6.11.1(b)(i).
“September 2014 Subscriber” means (a) each of Harbinger II S.à r.l., Harbinger Capital Partners Master Fund I, Ltd., Harbinger Capital Partners Special Situations Fund, L.P. and (b) any Entity Affiliate of Harbinger II S.à r.l., Harbinger Capital Partners Master Fund I, Ltd., and Harbinger Capital Partners Special Situations Fund, L.P. who becomes a party to the September 2014 Loan Agreement in connection with its assumption of a portion of one or more September 2014 Advances.
“September 2014 Unreserved Lookback Amount” has the meaning set forth in Section 6.11.1(j).
“September 2014 Warrants” means the aggregate entitlement of the September 2014 Subscribers under the warrant certificate(s) issued by the Company to each September 2014 Subscriber in connection with an September 2014 Advance from time to time pursuant to section 4.4 of the September 2014 Loan Agreement, and, if issued, the Alternate September 2014 Warrants referable to such, referable, upon exercise of the warrants 

evidenced thereby, to a number of Common Shares up to the aggregate Common Share Entitlement(s) contained therein, 
“Sliding September 2014 Adjustment” has the meaning set forth in Section 6.11.1(a)(ii).
“Sliding Proportionate September 2014 Amount” has the meaning set forth in Section 6.11.1(a)(ii).
“Third September 2014 Anniversary” means, with respect to any particular September 2014 Advance, the third anniversary of the date of completion of such September 2014 Advance.
		
	(f)
	The definition of “Common Share Entitlement” in section 7.1 (Certain Definitions) of the Shareholders Agreement is hereby deleted in its entirety and replaced with the following:

““Common Share Entitlement” has the meaning set forth in each May 2013 Minimum Warrant, each Alternate May 2013 Warrant, each November 2013 Warrant, each Alternate November 2013 Warrant, each January 2014 Warrant, each Alternate January 2014 Warrant, each April 2014 Warrant, each Alternate April 2014 Warrant, each September 2014 Warrant and each Alternate September 2014 September Warrant, as applicable.”
		
	(g)
	The definition of “Fully Diluted Basis” in section 7.1 (Certain Definitions) of the Shareholders Agreement is hereby deleted in its entirety and replaced with the following:

““Fully Diluted Basis” means the aggregate number of Common Shares, assuming the issuance, conversion or exercise (as the case may be) into Common Shares of any and all options (including the vested portion of such options, including the Pinnacle Option, but excluding any unvested portion of such options, including the Pinnacle Option), warrants (but excluding any outstanding warrants, including any outstanding May 2013 Minimum Warrants, November 2013 Warrants, January 2014 Warrants, April 2014 Warrants and September 2014 Warrants to the extent not yet exercisable on the date of any relevant determination of the number of Common Shares on a “Fully Diluted Basis”) and convertible or exchangeable securities issued by the Company (excluding the November 2013 Advances, the January 2014 Advances and the April 2014 Advances), in accordance with their respective terms.” 
		
	(h)
	The definition of “PNK Prepayment” in section 7.1 (Certain Definitions) of the Shareholders Agreement is hereby deleted in its entirety and replaced with the following:

““PNK Prepayment” has the meaning set forth in the Backstop Loan Agreement, the May 2013 Loan Agreement, the November 2013 Loan Agreement, the January 2014 Loan Agreement, the April 2014 Loan Agreement, and the September 2014 Loan Agreement, as the context may require.”
3.    No Other Changes.  Except as set forth in this Amendment, the Shareholders Agreement shall remain in full force and effect without any further changes or modifications.
4.    Governing Law.  This Amendment shall be deemed to be made in, and in all respects shall be interpreted, construed and governed by and in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable therein without regard to any conflict of law principles thereof that would result in the application of the laws of any other jurisdiction.  Each party submits to the exclusive jurisdiction of the Supreme Court of the Province of British Columbia for the purposes of all legal actions and proceedings arising out of or relating to this Amendment. 
5.     Headings.  The headings are for convenience only, do not form a part of this Amendment and are not intended to interpret, define or limit the scope, extent or intent of this Amendment or any of its provisions.
6.    Further Assurances.  Each party will execute and deliver such further agreements and other documents and do such further acts and things as the other party reasonably requests to evidence, carry out or give full force and effect to the intent of this Amendment.  

7.      Counterparts.  This Amendment may be executed in as many counterparts as may be necessary and may be delivered by facsimile or electronically transmitted and each such counterpart will be deemed to be an original and such counterparts together will constitute one and the same instrument.

[Remainder of Page Left Intentionally Blank]

IN WITNESS WHEREOF the parties, intending to be legally bound, have executed and delivered this Amendment as of the date first referenced above.

	
		
	ASIAN COAST DEVELOPMENT
(CANADA) LTD.
	HARBINGER II S.À R.L.

	Per:  ___/s/ Stephen H. Shoemaker
Name:  
Title:  
	Per:  /s/ Nicolas Gerard
Name: Nicolas Gerard
Title:  B manager

	 
	Per:  __/s/ Keith M. Hladek
Name:  Keith M. Hladek
Title:     Authorized Signatory

	BLUE LINE ACDL, INC.
	BREAKAWAY ACDL, INC.

	Per:  __/s/ Keith M. Hladek
Name:  Keith M. Hladek
Title:     Chief Financial Officer
	Per:  __/s/ Keith M. Hladek
Name:  Keith M. Hladek
Title:     Chief Financial Officer

	HARBINGER CHINA DRAGON INTERMEDIATE FUND, L.P., By: Harbinger Capital Partners II LP, its investment manager
	CREDIT DISTRESSED BLUE LINE MASTER FUND, LTD., By: Harbinger Capital Partners II LP, its investment manager

	Per:  __/s/ Keith M. Hladek
Name:  Keith M. Hladek
Title:     Chief Financial Officer
	Per:  __/s/ Keith M. Hladek
Name:  Keith M. Hladek
Title:     Chief Financial Officer

	GLOBAL OPPORTUNITIES BREAKAWAY LTD., By: Harbinger Capital Partners II LP, its investment manager
	PNK DEVELOPMENT 18, LLC

	Per:  __/s/ Keith M. Hladek
Name:  Keith M. Hladek
Title:     Chief Financial Officer
	Per:  ___________________________
Name:  
Title:

 [Signature Page- First Amendment to the Fourth Amended and Restated Shareholders Agreement]

	
		
	

PNK DEVELOPMENT 18, LLC

Per:  __/s/ Carlos Ruisanchez
Name:  Carlos Rusianchez
Title:     Chief Financial Officer, Treasurer

PNK DEVELOPMENT 31, LLC
	 

	Per:  _/s/ Carlos Rusianchez
Name:   Carlos Ruisanchez
Title:    Executive Vice President, Chief Financial Officer, Treasurer

 [Signature Page- First Amendment to the Fourth Amended and Restated Shareholders Agreement]

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