Document:

Filed by Bowne Pure Compliance

Exhibit 10.1

HARD ROCK HOTEL HOLDINGS, LLC

2008 PROFITS INTEREST AWARD PLAN

Hard Rock Hotel Holdings, LLC, a Delaware limited liability company (including any successor
entity which assumes this plan, the “Company”), has adopted this Hard Rock Hotel Holdings, LLC 2008
Profits Interest Award Plan (the “Plan”), as amended, modified or supplemented from time to time,
effective September 10, 2008 for the benefit of its eligible employees. The purpose of this Plan
is to provide such eligible employees with an opportunity to participate in the Company’s future by
offering them equity Awards (as defined below) in the Company so as to enhance the Company’s
ability to attract and retain individuals of exceptional talent to contribute to the sustained
progress, growth and profitability of the Company.

Pursuant to this Plan, Participants (as defined below) will be granted an award of Class C
Units (as defined below) (each an “Award” and collectively the “Awards”) and will thereby become
Members (as defined below) of the Company. The Class C Units so acquired shall be governed by, and
will be subject to, the transfer and other restrictions contained in (a) this Plan, (b) a Profits
Interest Agreement to be executed by and between the Company and each such Participant (including
exhibits thereto), and (c) the LLC Agreement (as defined below).

ARTICLE I.

DEFINITIONS

Whenever the following terms are used in this Plan, they shall have the meaning specified
below unless the context clearly indicates to the contrary. Any other capitalized terms used in
this Plan but not otherwise defined herein shall have their respective meaning set forth in the LLC
Agreement. The masculine pronoun shall include the feminine and neuter and the singular shall
include the plural, where the context so indicates.

1.1. Affiliate. “Affiliate” with respect to any Person shall mean (i) any other
Person who controls, is controlled by or is under common control with such Person or (ii) any
director or officer of such Person or any Person specified in clause (i) above. As used in this
definition, “control” (including its correlative meanings, “controlled by” and
“under common control with”) shall mean possession, directly or indirectly, of power to
direct or cause the direction of management or policies (whether through ownership of securities or
partnership, membership or other ownership interests, by contract or otherwise).

1.2. Approved Development Budget. “Approved Development Budget” shall mean the
development and construction budget for the Expansion Project approved by the Board, as such budget
may be modified by the Board from time to time.

1.3. Approved Development Budget Target. “Approved Development Budget Target” shall
mean the development and construction budget target for the Expansion Project of $750 million, as
approved by the Board, and as such target may be modified by the Board from time to time.

1.4. Award. “Award” shall have the meaning set forth in the Preamble.

 

 

 

1.5. Board. “Board” shall mean the board of directors of the Company under the LLC
Agreement.

1.6. C-Corporation. “C-Corporation” shall mean a “C corporation” within the meaning
of Section 1361 of the Code.

1.7. Capital Contribution. “Capital Contribution” shall mean a capital contribution by
a Member to the Company in accordance with the terms of the LLC Agreement.

1.8. Cause. “Cause,” with respect to any Participant, shall mean “Cause” as defined
in such Participant’s applicable Profits Interest Agreement.

1.9. Class C Units. “Class C Units” shall mean Class C Units of the Company as
defined in the LLC Agreement.

1.10. Code. “Code” shall mean the Internal Revenue Code of 1986, as amended, or any
successor statute or statutes thereto. Reference to any particular Code section shall include any
successor section, and any regulations promulgated thereunder.

1.11. Committee. “Committee” shall have the meaning set forth in Section 5.1.

1.12. Company. “Company” shall have the meaning set forth in the Preamble.

1.13. EBITDA. “EBITDA” for a given period shall mean earnings before interest, taxes,
depreciation and amortization, as such items (e.g. interest, taxes, depreciation and amortization)
are determined by the Board in its sole and absolute discretion in accordance with GAAP applicable
to the operation of hotels and with the Uniform System.

1.14. Employee. “Employee” shall mean any officer or other employee of the Company or
any Subsidiary of the Company. A Participant shall not cease to be an Employee in the case of
(i) any leave of absence approved by the Company or a Subsidiary of the Company or (ii) transfers
between locations of the Company or between the Company or a Subsidiary of the Company, or any
successor of the foregoing.

1.15. Encumbrance. “Encumbrance” shall mean a pledge, alienation, mortgage,
hypothecation, encumbrance or similar collateral assignment by any other means, whether for value
or no value and whether voluntary or involuntary (including, without limitation, by operation of
law or by judgment, levy, attachment, garnishment, bankruptcy or other legal or equitable
proceedings). The term “Encumber” shall have a correlative meaning.

1.16. Equity Restructuring. “Equity Restructuring” shall mean a non-reciprocal
transaction between the Company and its equity holders, such as an equity dividend, equity split,
spin-off, rights offering or recapitalization through a large, nonrecurring cash dividend or
distribution, that affects the securities of the Company or the unit price of the Company’s
securities and causes a change in the per unit value of the Class C Units underlying outstanding
Awards.

 

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1.17. Equity Securities. “Equity Securities” shall mean, as to any Person (i) shares
of capital stock, membership interests, units or other equity interests in such Person, (ii)
obligations, evidences of indebtedness or other securities or interests convertible or exchangeable
into capital stock, membership interests, units or other equity interests in such Person and (iii)
subscriptions, calls, warrants, options or commitments of any kind or character relating to, or
entitling any Person to purchase or otherwise acquire, any capital stock, membership interests,
units or other equity interests in such Person.

1.18. Exchange Act. “Exchange Act” shall mean the Securities Exchange Act of 1934,
as amended, or any successor statute or statutes thereto. Reference to any particular Exchange Act
section shall include any successor section.

1.19. Expansion Project. “Expansion Project” shall mean the proposed development
project associated with expanding the Hard Rock Hotel & Casino in Las Vegas, Nevada, in accordance
with development plans approved by the Board, as such plans may be modified by the Board from time
to time.

1.20. Fair Market Value. “Fair Market Value” shall mean, with respect to any assets
or securities (including, without limitation, the Class C Units), the fair market value for such
assets or securities, reflecting the amount that a willing buyer would pay to a willing seller in
an arm’s length transaction occurring on the date of valuation, as determined in good faith by the
Board in its sole discretion, without taking into account discounts for non-marketability, minority
interests, preferred distributions, restrictions on transferability, forfeiture restrictions and
any additional discounts that may otherwise be applicable due to the rights, powers and other
traits or characteristics of such assets or securities; provided that the Fair Market Value of any
publicly traded securities listed on one or more national securities exchanges or a non-United
States securities exchange of similar standing shall be the closing price as reported for such
securities on the date of determination (or, if such date is not a trading day, on the last trading
day immediately preceding the date of determination), or if no sale occurred on such trading day,
then the mean between the closing bid and ask prices on such exchange or market on such trading
day.

1.21. Gaming Authorities. “Gaming Authorities” shall mean any Governmental Authority
with jurisdiction over the ownership of an interest in an entity that is licensed to conduct gaming
activities or with jurisdiction over gaming operations relating to the Company Assets (as defined
in the LLC Agreement) including, without limitation, the Nevada State Gaming Control Board, the
Nevada Gaming Commission and the Clark County Liquor and Gaming License Board.

1.22. Gaming Regulations. “Gaming Regulations” shall mean any applicable statutes,
laws, rules, regulations, or other legal requirements of or promulgated by any legislative body,
Gaming Authorities, police or investigative agency, or other government or political subdivisions
or agency or subdivision thereto in the United States (including those in the State of Nevada) or
elsewhere in the world pertaining to the ownership or operation of casinos, the suitability of
Persons involved in gaming or gambling or otherwise relating to gaming or gambling, including,
without limitation, the Nevada Gaming Control Act (Nevada Revised Statutes Chapter 463) and the
regulations promulgated thereunder, as amended from time to time.

 

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1.23. Good Reason. “Good Reason” with respect to any Participant, means the
occurrence of any of the following events without the Participant’s consent: (i) a material
reduction of the Participant’s base compensation by the Company or its Subsidiaries, (ii) a
material diminution in the Participant’s authority, duties, or responsibilities with respect to the
Company or its Subsidiaries at a time when there are no circumstances that would permit a
termination of the Participant for Cause, or (iii) the relocation of the Company’s offices at which
the Participant is principally employed to a location more than 50 miles from such location.
Notwithstanding the foregoing, no termination for Good Reason shall be effective unless (a) the
Participant has given written notice to the Company setting forth the specific facts or
circumstances constituting Good Reason within 30 days after the initial existence of the occurrence
of such facts or circumstances, (b) the Company has failed to remedy such facts or circumstances
within 30 days of receipt of the Participant’s written notice, and (c) the effective date of the
termination for Good Reason occurs no later than 65 days after the initial existence of the facts
or circumstances constituting Good Reason.

1.24. Governmental Authority. “Governmental Authority” shall mean any nation or
government (including, without limitation, the government of the United States), any state, county,
municipal or other political subdivision thereof (including the State of Nevada and Clark County,
Nevada) and any Person exercising legislative, judicial, regulatory or administrative functions of
or pertaining to the government.

1.25. LLC Agreement. “LLC Agreement” shall mean the Second Amended and Restated
Limited Liability Company Agreement of Hard Rock Hotel Holdings, LLC, dated as of May 30, 2008 by
and among DLJ MB IV HRH, LLC, DLJ Merchant Banking Partners IV, L.P., DLJMB HRH VoteCo, LLC,
Morgans Hotel Group Co., and Morgans Group LLC, as amended on August 1, 2008, and as further
amended, modified or supplemented from time to time.

1.26. Members. “Members” shall mean the members of the Company under the LLC
Agreement.

1.27. Membership Interests. “Membership Interests” shall mean the outstanding
membership interests of the Company under the LLC Agreement.

1.28. Participant. “Participant” shall mean any Employee who is selected by the
Committee to receive an Award pursuant to the provisions of Section 3.1 hereof, who
executes a Profits Interest Agreement pursuant to the provisions of Section 3.2 hereof, and
who joins the LLC Agreement as a Member thereunder.

1.29. Permitted Transferee. “Permitted Transferee,” with respect to any Participant,
shall mean such Participant’s Qualified Living Trust.

1.30. Person. “Person” shall mean and include an individual, a corporation, a
partnership, a limited liability company, a joint venture, a trust, an unincorporated organization
and a government or any department or agency thereof, or any entity similar to any of the
foregoing.

1.31. Plan. “Plan” shall mean this Hard Rock Hotel Holdings, LLC 2008 Profits
Interest Award Plan, as amended, modified or supplemented from time to time.

 

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1.32. Profits Interest Agreement. “Profits Interest Agreement” shall mean the Profits
Interest Agreement, as amended, modified or supplemented from time to time, pursuant to which Class
C Units shall be issued to a Participant under this Plan.

1.33. Property Management Agreement. “Property Management Agreement” shall mean the
Amended and Restated Property Management Agreement, dated as of May 30, 2008, among HRHH
Hotel/Casino, LLC, HRHH Development, LLC, and HRHH Café, LLC, as Owners, and Morgans Hotel Group
Management LLC, as Operator, for the Management of the Hard Rock Hotel and Casino, Located at
4405-4455 Paradise Road, Las Vegas, Nevada, and Certain Other Assets.

1.34. Qualified Appraiser. “Qualified Appraiser” means any nationally recognized
valuation or appraisal firm or investment bank with expertise in the gaming industry that: (i) does
not currently provide nor is currently negotiating to provide (nor in the last two years has
provided) services to the Company or any Member or their respective Affiliates; and (ii) does not
hold or have Affiliates that hold equity interests in the Company or any Member.

1.35. Qualified Living Trust. “Qualified Living Trust” shall mean a revocable living
trust established by the Participant pursuant to which: (i) the Participant is and remains the
sole trustee of the living trust (unless the Participant ceases to be the sole trustee as a result
of his or her death or disability), (ii) the trustee of the living trust executes a Joinder to the
LLC Agreement in a form prescribed by the Company, (iii) the governing documents for the living
trust provide that they are in all regards subject to the terms and conditions of this Plan, the
Profits Interest Agreement, and the LLC Agreement, (iv) any distribution of Class C Units from the
living trust shall only be to such Participant or to the Company, and (v) the living trust, its
trustee and all of its beneficiaries are counted as one record holder for purposes of Section 12(g)
of the Exchange Act. In addition, in order for a living trust to be a “Qualified Living Trust,”
the governing documents for the living trust must have been submitted to the Company for review and
approval and the Company must have agreed in writing that such trust governing
documents include terms that provide for the foregoing and do not contain any terms
inconsistent with the foregoing.

1.36. Rule 16b-3. “Rule 16b-3” shall mean that certain Rule 16b-3 under the Exchange
Act, as such rule may be amended from time to time.

1.37. Sale of the Company. “Sale of the Company” shall mean any of the following: (a)
a merger or consolidation of the Company into or with any other Person or Persons, or a sale,
exchange or other disposition of Membership Interests in a single transaction or a series of
transactions, in which in any case the Members of the Company or their Affiliates immediately prior
to such merger, consolidation, sale, exchange, or other disposition or first of such series of
transactions cease to own, directly or indirectly, at least a majority of the voting power of, and
equity interests in, the Company’s or any successor entity’s issued and outstanding capital
securities immediately after such transaction or series of such transactions; or (b) a single
transaction or series of transactions, pursuant to which a Person or Persons who are not Affiliates
of the Company acquire all or substantially all of the Company’s and/or any of its Subsidiaries’
assets determined on a consolidated basis. The Committee, in its absolute discretion, shall
determine the effect of all matters and questions relating to the Sale of the Company including,
but not by way of limitation, when a Sale of the Company has occurred.

 

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1.38. Subsidiary. “Subsidiary” shall mean, with respect to a specified Person, any
other Person of which a majority of the outstanding voting securities or other voting equity
interests are owned, directly or indirectly, by the specified Person.

1.39. Termination of Employment. “Termination of Employment” shall mean the
termination for any reason, including without limitation death, disability, resignation, retirement
or termination with or without Cause, at any time, of a Participant’s employment with the Company
(or any of its Subsidiaries), but excluding any termination which includes simultaneous
reemployment or continuous employment of the Participant by the Company (or any of its
Subsidiaries). The Committee, in its absolute discretion, shall determine the effect of all
matters and questions relating to Termination of Employment, including, but not by way of
limitation, when a Termination of Employment is effective, the question of whether a Termination of
Employment resulted from a discharge for Cause, and all questions of whether particular leaves of
absence constitute Terminations of Employment. Notwithstanding any other provision of this Plan,
the Company (or its Subsidiaries) has an absolute and unrestricted right to terminate an Employee’s
employment at any time for any reason whatsoever, with or without Cause, except to the extent
expressly provided otherwise in writing.

1.40. Transfer. “Transfer” shall mean, with respect to any Member, any sale,
conveyance, exchange, assignment, gift, bequest or other transfer or disposition (whether direct or
indirect, by operation of law or by any other means), of all or any part of such Member’s
Membership Interests in the Company, whether for value or no value and whether voluntary or
involuntary (including, without limitation, by realization upon any Encumbrance or by operation of
law or by judgment, levy, attachment, garnishment, bankruptcy or other legal or equitable
proceedings) or an agreement to do any of the foregoing.

1.41. Uniform System. “Uniform System” shall mean the “Uniform System of Accounts for
the Lodging Industry (10th revised edition, Copyright 2006)” by the Hotel Association of New York
City, Inc. and published by the Educational Institute of the American Hotel & Motel Association, as
the same may be revised from time to time.

ARTICLE II.

CLASS C UNITS SUBJECT TO PLAN

2.1. Amount of Awards Subject to Plan. The Awards that may be granted under this Plan
shall be Class C Units. Subject to the provisions of Section 6.3 hereof, the maximum
aggregate number of Class C Units which may be delivered hereunder is 1,000,000 units. Such Awards
may consist, in whole or in part, of authorized but unissued Class C Units acquired or reacquired
in private transactions, or Class C Units otherwise issuable by the Company, or any combination of
the foregoing, as determined by the Committee in its discretion.

2.2. Add-back. To the extent that any Award is forfeited by a Participant, the Class
C Units covered by such Award may thereafter be awarded or re-granted under this Plan, subject to
the limitations of Section 2.1 on the total amount of Class C Units that may be issued as
Awards under this Plan.

 

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ARTICLE III.

AWARDS

3.1. Awards.

(a) The Committee may from time to time, in its sole and absolute discretion:

(i) Select those Employees who in its opinion should receive Awards; and

(ii) Determine the purchase price, if any, form of payment for Awards and other terms
and conditions applicable to such Awards, including provisions for vesting and forfeiture,
consistent with this Plan and with the LLC Agreement.

(b) Upon the selection of an Employee to receive an Award, the Committee shall grant such
Awards and may impose such conditions on the issuance of such Awards as the Committee deems
appropriate; provided, however, that no such condition may be inconsistent with the terms of the
LLC Agreement, the terms of which by this reference are incorporated herein.

3.2. Profits Interest Agreement. Awards shall be issued only pursuant to a Profits
Interest Agreement, which shall be executed by the selected Employee and an officer of the Company
designated by the Committee on behalf of the Company and which shall contain
such terms and conditions as the Committee shall determine, consistent with this Plan and with
the terms of the LLC Agreement. Upon receipt of an Award, a Participant shall, automatically and
without further action on his or her part, be deemed to be a party to, signatory of and bound by
the LLC Agreement. At the Company’s request, such Participant shall execute the LLC Agreement.
All Awards issued under this Plan shall be subject to the terms of the LLC Agreement and shall, in
the terms of each individual Profits Interest Agreement, be subject to such additional restrictions
as the Committee shall provide, which restrictions may include, without limitation, restrictions
concerning transferability and restrictions based on duration of employment with the Company,
performance by Employees of the Company or Company performance; provided, however, that, by action
taken in its absolute discretion after the Award is issued, the Committee may, on such terms and
conditions as it may determine to be appropriate, remove any or all of the restrictions imposed by
the terms of the Profits Interests Agreement.

3.3. Eligibility. An Award of Class C Units may only be issued to a Participant for
the performance of services to or for the benefit of the Company and its Subsidiaries (i) in the
Participant’s capacity as a Member, (ii) in anticipation of the Participant becoming a Member, or
(iii) as otherwise determined by the Committee, provided that the Class C Units would constitute
“profits interests” within the meaning of the Code, Treasury Regulations promulgated thereunder and
any published guidance by the Internal Revenue Service with respect thereto.

 

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3.4. Rights as Members. Upon the grant of Awards pursuant to this Plan, the
Participant shall have, unless otherwise provided by the Committee, all the rights and obligations
of a Member holding Class C Units with respect to said Awards as provided in this Plan and the LLC
Agreement, subject to the restrictions in his or her Profits Interest Agreement and the LLC
Agreement. As set forth in the LLC Agreement, the Participants shall not, by virtue of their
holding Awards, have the right to influence or control the management or operation of the Company.

3.5. Escrow. The Committee or such other escrow holder as the Committee may appoint
shall retain physical custody of each certificate, if any, representing any Award issued hereunder
until all of the restrictions, if any, imposed under the Profits Interest Agreement with respect to
the Award evidenced by such certificate expire or shall have been removed.

ARTICLE IV.

RESTRICTIONS ON AWARDS

4.1. Forfeiture of Awards. Unless otherwise determined by the Committee, upon any
Termination of Employment of a Participant, such Participant’s Award and all Class C Units subject
thereto, to the extent not vested as of the date of such Termination of Employment (and the
proportionate amount of the balance of Participant’s Capital Account (as defined in the LLC
Agreement) attributable to such Class C Units), shall thereupon automatically and without further
action be cancelled and forfeited by Participant, and Participant shall have no
further right or interest in or with respect to such unvested Class C Units (or such
proportionate amount of Participant’s Capital Account balance).

4.2. Restrictions on Class C Units. In addition to any applicable transfer
restrictions, repurchase rights and other restrictions set forth in the LLC Agreement with respect
to the Class C Units, the Class C Units shall be subject to such restrictions as the Committee
shall determine in its sole discretion, including, without limitation, transfer restrictions,
repurchase rights, requirements that Class C Units be transferred in the event of certain
transactions, rights of first refusal with respect to permitted transfers of Class C Units, voting
agreements, tag-along rights and drag-along rights. Such restrictions may, in the Committee’s sole
discretion, be contained in the applicable Profits Interest Agreement or in such other agreement as
the Committee shall determine, in each case in a form determined by the Committee in its sole
discretion. The issuance of the Class C Units shall be conditioned on the Participant’s consent to
such restrictions or the Participant’s entering into such agreement or agreements.

4.3. Legend. In order to enforce the restrictions imposed upon the Class C Units
issued pursuant to Awards granted hereunder, the Committee shall cause a legend or legends to be
placed on certificates, if any, representing the Awards that are still subject to restrictions
under the Profits Interest Agreements, which legend or legends shall make appropriate reference to
the conditions imposed thereby.

 

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ARTICLE V.

ADMINISTRATION

5.1. Committee. Prior to the Company’s conversion to a C-Corporation and the initial
registration of the common stock of such C-Corporation under Section 12 of the Exchange Act, the
“Committee” shall consist of the Board. Following such registration, the Committee shall be a
committee of the Board of Directors of the Company that complies with Rule 16b-3 and Section 162(m)
of the Code. For the avoidance of doubt, the registration of the Company as a “Form 10” Company
under Section 15 of the Exchange Act shall not constitute a registration for purposes of this
Section 5.1.

5.2. Duties and Powers of Committee. It shall be the duty of the Committee to conduct
the general administration of this Plan in accordance with its provisions. The Committee shall
have the power to interpret this Plan and the Profits Interest Agreements pursuant to which Awards
are issued, and to adopt such rules for the administration, interpretation, and application of this
Plan as are consistent therewith and to interpret, amend or revoke any such rules. Any Award under
this Plan need not be the same with respect to each Participant.

5.3. Governance of Committee. The governance of the Committee shall be subject to the
applicable provisions of the LLC Agreement.

5.4. Professional Assistance; Good Faith Actions; Compensation. All expenses and
liabilities which members of the Committee incur in connection with the administration of this Plan
shall be borne by the Company. The Committee may employ attorneys, consultants, accountants,
appraisers, brokers, or other Persons in connection with the administration of this Plan. The
Committee, the Company and the Company’s officers shall be entitled to rely upon the advice,
opinions or valuations of any such Persons. All actions taken and all interpretations and
determinations made by the Committee in good faith shall be final and binding upon all
Participants, the Company and all other interested Persons. No members of the Committee shall be
personally liable for any action, determination or interpretation made in good faith with respect
to this Plan, including grant of Awards, and all members of the Committee shall be fully protected
by the Company in respect of any such action, determination or interpretation. The members of the
Committee shall serve without compensation for their services as representatives of the Committee.

5.5. Financial Statements and Business Information. To the extent required by
applicable securities laws, each Participant shall receive financial statements and other
information relating to the Company, subject to applicable confidentiality obligations (including,
without limitation, the confidentiality obligations set forth in the LLC Agreement).

 

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ARTICLE VI.

MISCELLANEOUS PROVISIONS

6.1. Restrictions on Transfer of Awards. Each Award granted to a Participant under
this Plan is subject to the terms of the Profits Interest Agreement pursuant to which such Award
was issued and the applicable provisions of this Plan and the LLC Agreement, including, without
limitation, any applicable provisions regarding a Sale of the Company and the restrictions on
Transfer of Class C Units. Any Permitted Transferee of an Award shall take such Award subject to
the terms of this Plan, the Profits Interest Agreement pursuant to which such Award was issued, and
the LLC Agreement. Any Transfer of an Award which is not made in compliance with the Plan, the LLC
Agreement and the Profits Interest Agreement pursuant to which such Award was issued shall be null
and void and of no force or effect, and further, such Award may be cancelled and forfeited by the
Participant pursuant to the LLC Agreement.

6.2. Amendment, Suspension or Termination of this Plan. Except as otherwise provided
in this Section 6.2, this Plan may be wholly or partially amended or otherwise modified,
suspended or terminated at any time and from time to time by the Board; provided, however, that any
amendment that requires Member approval under applicable law shall be subject to such approval to
the extent required to comply with such law. No amendment, suspension or termination of this Plan
shall, without the consent of the holder of an Award, materially alter or impair any rights or
obligations under such Award theretofore granted or awarded, unless the Award itself otherwise
expressly so provides. No Award may be granted or awarded during any period of suspension or after
termination of this Plan.

6.3. Changes in Capitalization and Other Corporate Events.

(a) (i) Subject to Section 6.3(a)(ii) below, in the event that the Committee
determines, in its sole discretion, that any dividend or other distribution (whether in the form of
cash, additional Class C Units, other Equity Securities, or other property), any Capital
Contributions, any recapitalization, reclassification, reorganization, change to corporate form,
merger, consolidation, split-up, spin-off, combination, repurchase, liquidation, dissolution, or
sale, transfer, exchange or other disposition of all or substantially all of the assets of the
Company (including, but not limited to, a Sale of the Company), or exchange of Class C Units or
other Equity Securities of the Company, issuance of warrants or other rights to purchase Class C
Units or other Equity Securities of the Company, or other similar corporate transaction or event,
affects the Class C Units such that an adjustment is determined by the Committee to be appropriate
in order to prevent dilution or enlargement of the benefits or potential benefits intended to be
made available under the Plan or with respect to an Award, then the Committee shall, in such manner
as it may deem equitable, adjust any or all of:

(I) the number of Class C Units or the number and kind of Equity Securities with
respect to which Awards may be granted under the Plan (including, but not limited to,
adjustments of the limitations in Section 2.1 on the maximum number and kind of
Class C Units or Equity Securities which may be issued);

(II) the number of Class C Units or the number and kind of Equity Securities subject to
outstanding Awards; and

(III) the purchase price, if any, with respect to any Award.

 

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(ii) Notwithstanding the foregoing, if any transaction or event described in Section
6.3(a)(i) constitutes an Equity Restructuring:

(I) The number and type of securities subject to each outstanding Award and the
exercise price or grant price thereof, if applicable, shall be proportionately adjusted.
Such adjustments shall be nondiscretionary and final and binding on the affected Participant
and the Company; and

(II) The Committee shall make such proportionate adjustments, if any, as the Committee
in its discretion may deem appropriate to reflect such Equity Restructuring with respect to
the number and kind of Equity Securities that may be granted under the Plan (including, but
not limited to, adjustments of the limitations in Section 2.1 on the maximum number
and kind of Class C Units or Equity Securities which may be issued).

(b) In the event of any Sale of the Company or other transaction or event described in
Section 6.3(a) or any unusual or nonrecurring transactions or events affecting the Company,
any Affiliate of the Company, or the financial statements of the Company or any Affiliate, or of
changes in applicable laws, regulations, or accounting principles, the Committee in its discretion,
and on such terms and conditions as it deems appropriate, is hereby authorized to take any one or
more of the following actions whenever the Committee determines that such
action is appropriate in order to prevent dilution or enlargement of the benefits or potential
benefits intended to be made available under the Plan or with respect to any Award under this Plan,
to facilitate such transactions or events or to give effect to such changes in laws, regulations or
principles:

(i) The Committee may provide, either by the terms of the agreement or by action taken prior
to the occurrence of such transaction or event and either automatically or upon the Participant’s
request, for either (A) the purchase of all or any portion of such Award for an amount of cash
equal to the amount that could have been attained upon the realization of the Participant’s rights
had such Award (or portion thereof) been fully vested, or (B) the replacement of such Award with
other rights or property selected by the Committee in its sole discretion, which replacement award
may be subject to vesting or the lapsing of restrictions, as applicable, on terms not substantially
less favorable to the affected Participant than the terms of the Award for which such replacement
award is substituted;

(ii) The Committee may provide, either by the terms of such Award or by action taken prior to
the occurrence of such transaction or event, that upon such event, such Award be assumed by the
successor or survivor entity, or a parent or subsidiary thereof, or shall be substituted for by
similar awards covering the stock or Equity Securities of the successor or survivor entity, or a
parent or subsidiary thereof, with appropriate adjustments as to the number and kind of Equity
Securities subject to such Award and prices thereof;

(iii) The Committee may make adjustments in the number and type of Class C Units (or other
Equity Securities or property) subject to outstanding Awards and/or in the terms and conditions of
(including the purchase price, the repurchase price or the vesting schedule), and the criteria
included in, outstanding Awards and the related agreements and Awards which may be granted in the
future; and

(iv) The Committee may provide that such Award cannot vest or become payable after such
transaction or event.

 

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(c) Upon consummation of a conversion of the Company from a limited liability company to a
C-Corporation, subject to the provisions of the applicable agreement setting forth the terms of
such conversion, all Awards granted under the Plan shall be converted into shares of the resulting
corporation’s common stock or other awards or securities on terms and conditions which are
substantially equivalent to the terms and conditions of the Class C Units that such shares are
intended to replace. Without limiting the generality of the foregoing, to the extent that an Award
is vested at the time of such conversion, such Award shall be converted into vested shares of the
resulting corporation’s common stock or other vested awards or securities, and to the extent that
an Award is unvested at the time of such conversion, such Award shall be converted into unvested or
restricted shares of the resulting corporation’s common stock or other unvested or restricted
awards or securities. In addition, the Committee may take such action as is necessary to reflect
the conversion of the Company to a C-Corporation, including but not limited to amendment of any
Profits Interest Agreement to impose
additional restrictions necessary to satisfy any applicable law, including the requirements of
any stock exchange upon which the stock may be listed.

(d) Subject to Section 6.3(b), the Committee may, in its discretion, include such
further provisions and limitations in any Award as it may deem equitable and in the best interests
of the Company with respect to any event described in this Section 6.3.

6.4. Section 83(b) Election. Unless otherwise determined by the Board in its sole
discretion, each Participant who is granted an Award under the Plan shall be required to make an
election under Section 83(b) of the Code with respect to the Class C Units covered by such Award,
and the grant of such Award shall be conditioned on the Participant making such Section 83(b)
election.

6.5. Tax Withholding. The Company may withhold from each Participant’s wages, or
require each Participant to pay to the Company, any applicable withholding or employment taxes
resulting from the issuance of any Award hereunder, from the vesting or lapse of any restrictions
imposed on such Award, or from the ownership or disposition of any Class C Units.

6.6. Compliance with Laws. This Plan, the granting and vesting of Awards under this
Plan, the issuance and delivery of Class C Units pursuant to the Awards, and the payment of money
under this Plan or under the Awards granted hereunder are subject to compliance with all applicable
federal and state laws, rules and regulations (including, but not limited to, state and federal
securities law and federal margin requirements) and to such approvals by any listing, regulatory or
Governmental Authority as may, in the opinion of counsel for the Company, be necessary or advisable
in connection therewith. Any Equity Securities delivered under this Plan shall be subject to such
restrictions, and the Person acquiring such Equity Securities shall, if requested by the Company,
provide such assurances and representations to the Company as the Company may deem necessary or
desirable to assure compliance with all applicable legal requirements. To the extent permitted by
applicable law, the Plan and any Awards awarded hereunder shall be deemed amended to the extent
necessary to conform to such laws, rules and regulations.

 

12

 

6.7. Headings. Headings are provided herein for convenience only and are not to serve
as a basis for interpretation or construction of this Plan.

6.8. Governing Law. This Plan and any agreements hereunder shall be administered,
interpreted and enforced under the internal laws of the State of Delaware without regard to
conflicts of laws thereof.

6.9. Section 409A. No Award or Class C Unit is intended to constitute or provide for
“nonqualified deferred compensation” within the meaning of Section 409A of the Code. To the extent
that the Committee determines that any Award granted under the Plan is subject to Section 409A of
the Code, the Profits Interest Agreement evidencing such Award shall incorporate the terms and
conditions required by Section 409A of the Code. Notwithstanding
any provision of the Plan to the contrary, in the event that following the effective date
hereof the Committee determines that any Award may be subject to Section 409A of the Code and
related Department of Treasury guidance (including such Department of Treasury guidance as may be
issued after the effective date hereof), the Committee may adopt such amendments to the Plan and
the applicable Profits Interest Agreement or adopt other policies and procedures (including
amendments, policies and procedures with retroactive effect), or take any other actions, that the
Committee determines are necessary or appropriate to (a) exempt the Award from Section 409A of the
Code and/or preserve the intended tax treatment of the benefits provided with respect to the Award,
or (b) comply with the requirements of Section 409A of the Code and related Department of Treasury
guidance.

 

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I hereby certify that the foregoing Plan was duly adopted by the Board of the Company on
September 10, 2008.

Executed on
 _____, 2008.

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:Filed by Bowne Pure Compliance

Exhibit 10.2

HARD ROCK HOTEL HOLDINGS, LLC

CLASS C PROFITS INTEREST AGREEMENT

THIS CLASS C PROFITS INTEREST AGREEMENT (this “Agreement”) is made and entered into as of
                             , 2008 (the “Effective Date”), by and between Hard Rock Hotel Holdings, LLC, a Delaware
limited liability company (the “Company”), and                      (“Participant”). Capitalized
terms used in this Agreement but not otherwise defined herein shall have their respective meanings
set forth in the Plan and the LLC Agreement (each as defined below), as applicable.

THE PARTIES HERETO AGREE AS FOLLOWS:

1. Issuance of Award. In consideration of Participant’s agreement to provide services
to or for the benefit of the Company and its Subsidiaries, effective as of the Effective Date, the
Company hereby (a) issues to Participant an Award which represents                      Class C Units of
the Company (the “Award”), and (b) if not already a Member, admits Participant as a Member of the
Company, in consideration of Participant’s agreement to provide services to the Company and its
Subsidiaries on the terms and conditions set forth herein, in the Hard Rock Hotel Holdings, LLC
2008 Profits Interest Award Plan (as amended, modified or supplemented from time to time, the
“Plan”) and in the Second Amended and Restated Limited Liability Company Agreement of Hard Rock
Hotel Holdings, LLC, dated as of May 30, 2008, as amended on August 1, 2008, and as further
amended, modified or supplemented from time to time (the “LLC Agreement”), and upon execution of a
Form of Joinder to the LLC Agreement, in the form attached hereto as Exhibit B. The
Company and Participant acknowledge and agree that the Class C Units are hereby issued to
Participant for the performance of services to or for the benefit of the Company and its
Subsidiaries in his or her capacity as a Member or in anticipation of Participant becoming a
Member. Participant acknowledges that the Company from time to time may issue or cancel (or
otherwise modify) Class C Units in accordance with the terms of the Plan or LLC Agreement.
Participant further acknowledges that this agreement and the LLC Agreement substantially restrict
the Transfer of Class C Units, and provide for drag along rights, cancellation provisions and other
provisions that impact ownership of the Class C Units.

2. Vesting, Termination of Employment, and Repurchase Right.

2.1 Vesting.

(a) One-fourth of the total number of Class C Units covered by the Award shall vest on the
Effective Date. Subject to Section 2.2 and 2.3 below, the remainder of the Award shall vest with
respect to one-fourth of the total number of Class C Units covered by the Award on each of December
31, 2008, December 31, 2009 and December 31, 2010.

(b) Vesting Upon Sale of the Company. In the event that a Sale of the Company occurs
prior to December 31, 2010 and Participant remains an Employee until the
closing date of the Sale of the Company, 100% of the remaining outstanding unvested Class C
Units covered by the Award (not cancelled or forfeited prior to such date) shall vest immediately
prior to the Sale of the Company.

 

 

 

2.2 Effect of Termination of Service on Unvested Units.

(a) In the event of Participant’s Termination of Employment by the Company without Cause (as
defined below) or by Participant for Good Reason, to the extent that the date of termination (the
“Termination Date”) occurs on or after April 1 of the calendar year of termination (the
“Termination Year”), the number of any unvested Class C Units that could have vested on December 31
of the Termination Year pursuant to Section 2.1(a) above, multiplied by a fraction, the numerator
of which is the number of completed calendar quarters of the Termination Year that preceded the
Termination Date, and the denominator of which is four, shall vest immediately prior to the
Termination Date. Any other Class C Units, to the extent not vested as of the Termination Date
(and the proportionate amount of Participant’s Capital Account balance attributable to such Class C
Units), shall thereupon automatically and without further action be cancelled and forfeited, and
Participant shall have no further right or interest in or with respect to such unvested Class C
Units (or such proportionate amount of Participant’s Capital Account balance). No portion of the
Award and no Class C Units which are unvested as of Participant’s Termination of Employment shall
thereafter become vested.

(b) For purposes of this Agreement, “Cause” shall mean, with respect to any Participant: (i)
the Participant’s unauthorized use or disclosure of confidential information or trade secrets of
the Company or its Affiliates (including the Morgans Parties) or any other breach of a written
agreement between the Participant and the Company or its Affiliates (including the Morgans
Parties), including without limitation a breach of any employment or confidentiality agreement;
(ii) the Participant’s commission of a felony or commission of any other crime involving dishonesty
under the laws of the United States or any state thereof; (iii) the Participant’s gross negligence
or willful misconduct or the Participant’s willful or repeated failure or refusal to substantially
perform assigned duties; (iv) any act of fraud, embezzlement, misappropriation or dishonesty
committed by the Participant against the Company or its Affiliates (including the Morgans Parties);
(v) any acts, omissions or statements by the Participant which the Company reasonably determines to
be detrimental or damaging to the reputation, operations, prospects or business relations of the
Company or its Affiliates (including the Morgans Parties); (vi) any acts, omissions, or statements
by a Participant which result in the Participant or the Company or its Affiliates (including the
Morgans Parties) having been found unsuitable or denied or disqualified from eligibility for any
license or approval by the Nevada Gaming Authorities; or (viii) any breach of the LLC Agreement or
this Agreement by the Participant.

2.3 Effect of Termination of Service on Vested Class C Units.

(a) Forfeiture Upon Termination for Cause. In the event of a Termination of
Employment by the Company for Cause (a “Forfeiture Termination”), the Award and all Class C Units,
whether vested or unvested as of the Termination Date (and the proportionate amount of
Participant’s Capital Account balance attributable to such Class C Units), shall thereupon
automatically and without further action be cancelled and forfeited, and Participant shall have no
further right or interest in or with respect to such Class C Units (or such proportionate amount of
Participant’s Capital Account balance).

 

2

 

(b) Company’s Repurchase Right Upon Other Terminations.

(i) In the event of Participant’s Termination of Employment for any reason other than a
Forfeiture Termination, the Company shall have the right, for a period equal to 180 days following
the later of the Termination Date or December 31, 2010 (the later of the Termination Date or
December 31, 2010, the “Repurchase Right Date”), to purchase from Participant, or Participant’s
personal representative, as the case may be, any or all of the vested Class C Units then owned by
Participant at a price per Class C Unit equal to the Repurchase Price (as defined below) (the
“Repurchase Right”). The “Repurchase Price” shall equal the greater of (A) the per unit value of
such Class C Units calculated by the Company based on the amount of Participant’s Capital Account
balance attributable to such Class C Units as of the Repurchase Right Date, assuming a deemed
liquidation of the Company on the Repurchase Right Date at an enterprise value of the Company equal
to the excess, if any, of (x) ten (10) times the Company’s aggregate EBITDA for the four completed
fiscal quarters ending on or immediately preceding the Repurchase Right Date, minus (y)  the
Company’s total debt as of the Repurchase Right Date determined in accordance with GAAP applicable
to the operation of hotels and with the Uniform System, or (B) the fair market value of such a
Class C Unit as of the Repurchase Right Date determined by a Qualified Appraiser selected by the
Company, provided that, within 10 calendar days after the Company’s delivery of a Repurchase Notice
(as defined below), Participant provides written notice to the Company that Participant wishes to
compel the Company to engage a Qualified Appraiser to value the Class C Units. The Company may
exercise the Repurchase Right by delivering personally or by registered mail to Participant (or his
or her transferee or legal representative, as the case may be), within the applicable time period
specified above, a notice in writing indicating the Company’s intention to exercise the Repurchase
Right and setting forth a date and manner for closing not later than thirty (30) days from the
mailing of such notice (the “Repurchase Notice”). Upon payment of the foregoing consideration by
the Company to Participant, the Class C Units subject to the Repurchase Right shall be cancelled by
the Company without any further action of Participant.

(ii) The Repurchase Right shall terminate upon the earlier to occur of (A) a Sale of the
Company, or (B) the consummation of the initial sale of common stock of the Company or its
successor to the general public in a firm commitment underwriting pursuant to a registration
statement filed with and declared effective by the Securities and Exchange Commission under the
Securities Act of 1933, as amended.

3. Transfers.

3.1 Restrictions on Transfers of Class C Units. Subject to Section 3.2 below and
except as provided in Sections 4, 5, and 6 below, Participant shall not Transfer or Encumber the
Award or any Class C Units (the “Transfer Restriction”); provided, however, that such
prohibition shall not apply to any Transfer of the Award or Class C Units to the Company or
any Subsidiary.

3.2 Exception for Permitted Transferees. Anything to the contrary contained in this
Section notwithstanding, the Transfer of the Award or any Class C Units during Participant’s
lifetime to a Permitted Transferee shall be exempt from the Transfer Restriction. In such case,
the Permitted Transferee shall receive and hold the Class C Units so Transferred subject to the
provisions of this Section and there shall be no further Transfer of such Class C Units except in
accordance with the terms of this Section. Any Transfer of the Award or Class C Units which is not
made in compliance with the Plan, the LLC Agreement and this Agreement shall be null and void and
of no effect, and further, such Award may be cancelled and forfeited by Participant pursuant to the
LLC Agreement.

 

3

 

4. Drag-Along Right.

(a) Right to Cause Sale. If at any time the holders of at least an aggregate
fifty-one percent Membership Interest in the Company and/or their Affiliates (collectively, the
“Majority Holders”) propose to Transfer, directly or indirectly, in a single transaction or a
series of related transactions more than an aggregate fifty percent Membership Interest in the
Company in an arm’s-length transaction to a bona fide third party that is not an Affiliate of the
Majority Holders (an “Approved Sale”), then the Majority Holders can require Participant to sell a
portion of his or her Membership Interest that is represented by Class C Units equal to the
proportionate share of Membership Interests being sold by the Majority Holders and all other
Members in such Approved Sale (based upon the total Membership Interests held by the Majority
Holders and all other Members at such time) on substantially the same terms and conditions (the
“Drag-Along Right”); provided, however, that, in the event that the Morgans Parties (as defined in
the LLC Agreement) then own any Membership Interests, then, as a condition to the Majority Holders’
right to require Participant to effect such sale, the Morgans Parties must be required to sell (or
must have agreed to sell or otherwise waive any right to sell) a proportionate share of their
Membership Interests in the Approved Sale (the “Morgans Group Drag Condition”). In the event of
an Approved Sale, the Majority Holders will deliver a written notice to Participant at least twenty
days before entering into a binding agreement with respect to such Approved Sale, specifying in
reasonable detail the identity of the prospective transferee, the amount of Membership Interests to
be Transferred by the Majority Holders, the terms and conditions of the Approved Sale and whether
or not the Majority Holders are electing to exercise the Drag-Along Right (the “Approved Sale
Notice”).

(b) Obligations of Participant. If the consummation of the Approved Sale would result
in a Transfer of 100% of the Membership Interests in the Company, then the Majority Holders may in
their sole discretion elect to cause the Company to structure the Approved Sale as a merger or
consolidation or a as a sale of the Company’s assets. If such Approved Sale is structured as a
merger, consolidation or a sale of assets, then Participant shall not have any dissenter’s rights,
appraisal rights or similar rights in connection therewith. Participant agrees to consent to and
raise no objections against an Approved Sale. In the event of the exercise by the Majority Holders
of their Drag-Along Right, Participant shall take all
necessary or desirable actions approved by the Majority Holders in connection with the
consummation of the Approved Sale, including the execution of such agreements and such instruments
and other actions necessary to provide customary representations, warranties, indemnities,
covenants, conditions and other agreements relating to such Approved Sale and to otherwise effect
the transaction; provided, however, that Participant shall not be required to indemnify the
transferee pursuant to such agreements in an amount in excess of the gross proceeds paid to
Participant in connection with the Approved Sale. Participant shall bear his or her ratable share
(based on its percentage of the aggregate Membership Interests to be sold by all Members) of the
out of pocket costs of the Approved Sale to the extent such costs are incurred for the benefit of
all Members and are not otherwise paid by the Company or the acquiring party. Costs incurred by
Members on their own behalf shall not be considered costs of the Approved Sale.

 

4

 

5. Tag-Along Right. If the Approved Sale Notice indicates that the Majority Holders
are not exercising the Drag-Along Right, then Participant may elect to participate in the
contemplated Approved Sale by delivering irrevocable written notice to the Majority Holders within
fifteen days after delivery of the Approved Sale Notice; provided, however, that, in the event that
the Morgans Parties then own any Membership Interests, then, as a condition to Participant’s right
to participate in such sale, the Morgans Parties must have similar rights (or must have waived any
such rights) to participate in the sale of a proportionate share of their Membership Interests in
the Approved Sale (the “Morgans Group Tag Condition”). If Participant elects to participate in the
Approved Sale, then he or she will be entitled to sell, on the same terms and conditions specified
in the Approved Sale Notice, a portion of his or her Membership Interests represented by Class C
Units equal to the proportionate share of Membership Interests being sold by the Majority Holders
and all other Members (based upon the total Membership Interests held by the Majority Holders and
all other Members at such time). The Majority Holders shall use their commercially reasonable
efforts to obtain the agreement of the prospective transferee to the participation of Participant
in the contemplated Approved Sale. If, within fifteen days after delivery of the Approved Sale
Notice, Participant does not provide the Majority Holders irrevocable notice of its election to
participate in the Approved Sale, then the Majority Holders shall be entitled to Transfer to the
prospective transferee the amount of Membership Interests specified in the Approved Sale Notice on
substantially the same terms and conditions specified therein.

6. Piggyback Registration Rights. In the event the Board elects to convert the
Company to a C-Corporation and register any of its securities under the Securities Act pursuant to
an underwritten initial public offering of the Company’s securities by the Company and/or its
stockholders, the Company will give written notice (the “Registration Notice”) to Participant of
its intention to effect such a registration at least ten days prior to the anticipated filing of
the registration statement relating to the registration (which notice will specify the intended
method of distribution of the registered shares). Upon the written request of Participant made
within ten days after the receipt of the Company’s notice, which request shall specify the number
of shares converted from Class C Units of Participant intended to be disposed (the “Requested
Shares”), the Company shall use its commercially reasonable efforts to effect the registration
under the Securities Act of all Requested Shares according to its intended method of disposition
thereof. Notwithstanding the foregoing, if the lead underwriter(s) advise the Board in writing that
marketing factors require a limitation of the number of shares to be underwritten, then the Board
shall so advise Participant, and the number of shares that may be included in such underwriting
shall be allocated among Participant and all other holders who have validly exercised piggyback
registration rights in connection with such registration in proportion (as nearly as practicable)
to the number of shares owned and requested to be registered by each such holder, including
Participant. In connection with such registration, Participant shall provide customary
representations, warranties, indemnities, covenants, conditions and other agreements relating to
such registration to the underwriters; provided, however, that Participant shall not be required to
indemnify any underwriter in an amount in excess of the total price at which Participant’s
registered shares were offered to the public in connection with the registration (net of discounts
and commissions paid by Participant in connection with the registration).

 

5

 

7. Representations, Warranties, Covenants, and Acknowledgments of Participant.
Participant hereby represents, warrants, covenants, acknowledges and agrees on behalf of
Participant and his or her spouse, if applicable, that:

7.1 Investment. Participant is holding the Award for Participant’s own account, and
not for the account of any other Person. Participant is holding the Award for investment and not
with a view to distribution or resale thereof except in compliance with applicable laws regulating
securities.

7.2 Relation to Company. Participant is presently an Employee and in such capacity
has become personally familiar with the business of the Company.

7.3 Access to Information. Participant has had the opportunity to ask questions of,
and to receive answers from, the Company with respect to the terms and conditions of the
transactions contemplated hereby and with respect to the business, affairs, financial conditions,
and results of operations of the Company.

7.4 Registration. Participant understands that the Class C Units have not been
registered under the Securities Act of 1933, as amended (the “Securities Act”), and the Class C
Units cannot be transferred by Participant other than in accordance with the terms and conditions
set forth in the Plan, this Agreement and the LLC Agreement and, in any event, unless such transfer
is registered under the Securities Act or an exemption from such registration is available. The
Company has made no representations, warranties or covenants whatsoever as to whether any exemption
from the Securities Act is available.

7.5 Public Trading. None of the Company’s Equity Securities is presently publicly
traded, and the Company has made no representations, covenants or agreements as to whether there
will be a public market for any of its Equity Securities.

7.6 Tax Advice. The Company has made no warranties or representations to Participant
with respect to the income tax consequences of the issuance of the Class C Units or the
transactions contemplated by this Agreement (including, without limitation, with respect to
the making of an election under Section 83(b) of the Code), and Participant is in no manner
relying on the Company or its representatives for an assessment of such tax consequences.
Participant is advised to consult with his or her own tax advisor with respect to such tax
consequences and his or her ownership of the Class C Units.

7.7 Accredited Investor. Participant is an “accredited investor” as that term is
defined under Regulation D of the Securities Act.

8. Capital Account. Participant shall make no Capital Contribution to the Company in
connection with the Award and, as a result, Participant’s Capital Account (as defined in the LLC
Agreement) balance in the Company immediately after his or her receipt of the Class C Units shall
be equal to zero, unless Participant was a Member in the Company prior to such issuance, in which
case Participant’s Capital Account balance shall not be increased as a result of his or her receipt
of the Class C Units.

 

6

 

9. Binding Effect. Subject to the limitations set forth in this Agreement, this
Agreement shall be binding upon, and inure to the benefit of, the executors, administrators, heirs,
legal representatives, successors and assigns of the parties hereto.

10. Section 83(b) Election. Participant covenants that he shall make a timely
election under Section 83(b) of the Code (and any comparable election in the state of Participant’s
residence) with respect to the Class C Units covered by the Award. In connection with such
election, Participant and Participant’s spouse, if applicable, shall execute and deliver to the
Company with this executed Agreement, a copy of the Election Pursuant to Section 83(b) of the
Internal Revenue Code, substantially in the form attached hereto as Exhibit A. Participant
represents that Participant has consulted any tax consultant(s) that Participant deems advisable in
connection with the filing of an election under Section 83(b) of the Code and similar state tax
provisions. Participant acknowledges that it is Participant’s sole responsibility and not the
Company’s to timely file an election under Section 83(b) of the Code (and any comparable state
election), even if Participant requests that the Company or any representative of the Company make
such filing on Participant’s behalf. Participant should consult his or her tax advisor to
determine if there is a comparable election to file in the state of his or her residence.

11. Taxes. The Company and Participant intend that (i) the Class C Units be treated
as “profits interests” within the meaning of the Code, Treasury Regulations promulgated thereunder,
and any published guidance by the Internal Revenue Service with respect thereto, including, without
limitation, Internal Revenue Service Revenue Procedure 93-27, as clarified by Internal Revenue
Service Revenue Procedure 2001-43, (ii) the issuance of such interests not be a taxable event to
the Company or Participant as provided in such Revenue Procedure, and (iii) the LLC Agreement, the
Plan and this Agreement be interpreted consistently with such intent. In furtherance of such
intent, effective immediately prior to the issuance of the Class C Units, the Company will cause
the Gross Asset Value (as defined in the LLC Agreement) of all Company assets to be adjusted to
equal their respective gross fair market values, and make the resulting adjustments to the Capital
Accounts of the Members, in each case as set forth in the LLC Agreement. The Company may withhold
from Participant’s wages, or require Participant to pay
to the Company, any applicable withholding or employment taxes resulting from the issuance of
the Award hereunder, from the vesting or lapse of any restrictions imposed on the Award, or from
the ownership or disposition of the Class C Units.

12. Non-Competition, Non-Solicitation, and Confidentiality.

12.1 In consideration of and in connection with the grant of the Award to Participant,
Participant agrees that

(a) During the period of Participant’s employment with the Company, Participant shall not,
directly or indirectly, own, manage, join, control, operate, consult with, render services for, or
participate in the ownership, management, operation or control of, or be connected as a director,
officer, employee, partner, consultant or otherwise with, or in any other manner engage in any
business which, directly or indirectly, competes with, or in any way interferes with, the hotel
casino business of the Company or any of its Affiliates, including the Morgans Parties (including
without limitation, the hotel casino’s nightclub business, restaurant business, and other
businesses), in any part of the Restricted Territory (any such activity, “Competitive Activity”);
and

 

7

 

(b) In the event of termination of Participant’s employment with the Company (i) for Cause at
any time, or (ii) by Participant without Good Reason during the Covered Period (but excluding any
Termination of Employment upon the expiration of the Covered Period if Participant elects to
terminate Participant’s employment as of the expiration of the Covered Period by notifying the
Company, in writing, of such election not less than 90 days prior to the last day of the Covered
Period then in effect), Participant shall not, during the Non-Compete Period (as defined below),
directly or indirectly engage in Competitive Activity;

provided, however, that nothing in Section 12.1(a) or (b) shall restrict Participant from any such
activities undertaken for the benefit of the Morgans Parties or their Affiliates to the extent such
activities do not contravene the provisions of the Property Management Agreement.

(c) For purposes of this Agreement, (i) “Covered Period” shall mean the period commencing on
the Effective Date and terminating on December 31, 2010; provided, however, that the Covered Period
shall automatically be extended for one additional year on December 31, 2010 and on each subsequent
anniversary thereof, unless either Participant or the Company elects to terminate Participant’s
employment as of the expiration of the Covered Period then in effect by notifying the other party,
in writing, of such election not less than 90 days prior to the last day of the Covered Period then
in effect, (ii) “Non-Compete Period” shall mean the greater of (A) the 12 month period immediately
following the Termination Date, or (B) the period during which Participant is entitled to receive
severance payments or benefits from the Company or any of the Morgans Parties (or, if severance is
paid in a lump-sum, the period of time that would be covered by such severance had it been paid in
the form of salary continuation), provided, however, that the Company may, in its discretion, elect
to extend such period to no later than the two year anniversary of the Termination Date by
providing at least 60 days advance notice to Participant (or, in the event of a Termination of
Employment by Participant, notice within 10 days after Participant notifies the Company of such termination) that it
wishes to extend the Non-Compete Period, in which case the Company shall pay Participant not to
engage in Competitive Activity during such extended period at a rate equal to no less than
Participant’s base salary and bonus (as in effect as of the Termination Date) for such extended
period, and (iii) “Restricted Territory” shall mean the greater Las Vegas metropolitan area and any
territory within a 25 mile radius thereof. Notwithstanding the foregoing, nothing herein shall
prohibit Participant from being a passive owner of not more than five percent (5%) of the
outstanding stock of any class of a corporation which is publicly traded, so long as Participant
has no active participation in the business of such corporation. Participant understands that the
foregoing restrictions may limit his or her ability to earn a livelihood in a business similar to
the business of the Company, but Participant nevertheless believes that he has received and will
receive sufficient consideration and other benefits as an Employee of the Company and as otherwise
provided hereunder to clearly justify such restrictions which, in any event (given Participant’s
education, skills and ability), Participant does not believe would prevent him or her from
otherwise earning a living.

 

8

 

12.2 During the period of Participant’s employment with the Company and for a period of 12
months thereafter, Participant shall not, directly or indirectly, (i) induce or attempt to induce
any employee of the Company to work for, render services or provide advice to or supply
confidential business information or trade secrets of the Company to any third person, firm or
corporation, or in any way interfere with the relationship between the Company, on the one hand,
and any employee thereof, on the other hand, (ii) induce or attempt to induce any customer,
supplier, licensee or other business relation of the Company to cease doing business with the
Company, or (iii) in any way interfere with the relationship between any such customer, supplier,
licensee or business relation, on the one hand, and the Company, on the other hand; provided,
however, that with respect to the Company’s customers, the foregoing provisions of this Section
12.2 shall not restrict Participant from any such activities undertaken for the benefit of the
Morgans Parties or their Affiliates to the extent such activities do not contravene the provisions
of the Property Management Agreement.

12.3 As a condition to the grant of the Award, Participant agrees to execute the Company’s
standard employee non-disclosure, assignment of inventions, and confidentiality agreement in a form
prescribed by the Company.

13. Remedies. Participant shall be liable to the Company for all costs and damages,
including incidental and consequential damages, resulting from a disposition of the Award which is
in violation of the provisions of this Agreement. Participant acknowledges that a breach by him or
her of any of the covenants or restrictions contained or referenced herein will cause irreparable
damage to the Company, the exact amount of which will be difficult to ascertain, and that the
remedies at law for any such breach will be inadequate. Accordingly, Participant agrees that if he
or she breaches or attempts to breach any such covenants or restrictions, the Award may be
cancelled and forfeited by Participant pursuant to the LLC Agreement, and/or the Company shall be
entitled to temporary or permanent injunctive relief with respect to any such breach or attempted
breach (in addition to any other remedies, at law or in equity, as may be
available to the Company), without posting bond or other security. Participant will not
assert as a defense that there is an adequate remedy at law.

14. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware without regard to any otherwise governing principles of
conflicts of law, except that the laws of the State of Nevada shall be so applied to Section 12 of
this Agreement.

15. Notice of Restrictions. Participant is hereby notified and acknowledges that:

(a) The offering and sale of the Class C Units have not been registered under the
Securities Act of 1933, as amended (the “Securities Act”). Any transfer of such securities
will be invalid unless a Registration Statement under the Securities Act is in effect as to
such transfer or in the opinion of counsel for the Company such registration is unnecessary
in order for such transfer to comply with the Securities Act.

(b) The Class C Units are subject to forfeiture, a right of repurchase and to
transferability and other restrictions as set forth in this Agreement and the LLC
Agreement, in each case, as may be amended, supplemented or modified from time to time, and
such securities may not be sold or otherwise transferred except pursuant to the provisions
of such documents.

 

9

 

16. Code Section 409A. Neither the Award nor the Class C Units are intended to
constitute or provide for “nonqualified deferred compensation” within the meaning of Section 409A
of the Code (“Section 409A”), and, provided that Section 409A of the Code, Treasury Regulations and
related Department of Treasury guidance do not require otherwise, the Company shall not treat the
Award or the Class C Units as nonqualified deferred compensation. However, notwithstanding any
other provision of the Plan or this Agreement, if at any time the Committee determines that the
Award or the Class C Units may be subject to Section 409A, the Committee shall have the right, in
its sole discretion, to adopt such amendments to the Plan or this Agreement or take such other
actions (including amendments and actions with retroactive effect) as the Committee determines are
necessary or appropriate either for the Award and the Class C Units to be exempt from the
application of Section 409A or to comply with the requirements of Section 409A.

17. Counterparts. This Agreement may be executed in any number of counterparts, any
of which may be executed and transmitted by facsimile, and each of which shall be deemed to be an
original, but all of which together shall be deemed to be one and the same instrument.

18. Successors and Assigns. Subject to the limitations set forth in this Agreement,
this Agreement shall be binding upon, and inure to the benefit of, the executors, administrators,
heirs, legal representatives, successors and assigns of the parties hereto, including, without
limitation, any business entity that succeeds to the business of the Company. This Agreement may
not be assigned by Participant without the consent of the Company in its sole discretion.

19. Entire Agreement; Amendments and Waivers. This Agreement, together with the Plan
and the LLC Agreement, constitutes the entire agreement among the parties pertaining to the subject
matter hereof and supersedes all prior agreements, understandings, negotiations and discussions,
whether oral or written, of the parties. This Agreement may not be amended except in an instrument
in writing signed on behalf of each of the parties hereto and approved by the Committee. No
amendment, supplement, modification or waiver of this Agreement shall be binding unless executed in
writing by the party to be bound thereby. Notwithstanding the foregoing, the Committee shall have
the right to amend this Agreement in accordance with Section 6.3(b) of the Plan without the consent
of Participant or to the extent that such amendment does not materially adversely impair the rights
of Participant hereunder. No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provision hereof (whether or not similar), nor shall such
waiver constitute a continuing waiver unless otherwise expressly provided.

20. Third Party Beneficiary. The parties hereto expressly intend that (i) with
respect to Sections 4, 5, and 12, the Majority Holders, and (ii) with respect to Section 12 and the
Morgans Group Drag Condition set forth in Section 4, the Morgans Parties, be intended third party
beneficiaries and shall have standing to enforce such provisions hereof as if they were a party
hereto. Notwithstanding any provision of this Agreement to the contrary, Sections 4, 5, and 12
shall not be amended without the express prior written consent of the Majority Holders, and Section
12 and the Morgans Group Drag Condition set forth in Section 4 shall not be amended without the
express prior written consent of the Morgans Parties. Notwithstanding the foregoing, at such time
as the Majority Holders or the Morgans Parties cease to own any Membership Interest, the third
party beneficiary rights, enforcement rights and consent rights under this Section 20 of the
Majority Holders or the Morgans Parties, respectively, shall automatically terminate and be of no
further force or effect.

 

10

 

21. Severability. If any term, provision, covenant or condition of this Agreement is
held by a court of competent jurisdiction to exceed the limitations permitted by applicable law,
then the provisions will be deemed reformed to the maximum limitations permitted by applicable law
and the parties hereby expressly acknowledge their desire that in such event such action be taken.
If for any reason one or more of the provisions contained in this Agreement or in any other
instrument referred to herein, shall, for any reason, be held to be invalid, illegal or
unenforceable in any respect, then to the maximum extent permitted by law, such invalidity,
illegality or unenforceability shall not affect any other provision of this Agreement or any other
such instrument.

22. Titles. The titles, captions or headings of the Sections herein are inserted for
convenience of reference only and are not intended to be a part of or to affect the meaning or
interpretation of this Agreement.

[Signature page follows]

 

11

 

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

	 	 	 	 	 
	 	
Hard Rock Hotel Holdings, LLC,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Participant hereby accepts and agrees to be bound by all of the terms and conditions of this
Agreement.

	 	 	 	 	 
	 	
Participant:
	 
	 	 	 
	 	(Sign Name) 	 

					
	 	
 	 
	 	(Print Name) 	 

PROFITS INTEREST AGREEMENT

 

12

 

	 	 	 	 	 

EXHIBIT A

ELECTION PURSUANT TO SECTION 83(b) OF THE

INTERNAL REVENUE CODE TO INCLUDE IN GROSS

INCOME THE EXCESS OVER THE PURCHASE PRICE,

IF ANY, OF THE VALUE OF PROPERTY TRANSFERRED

IN CONNECTION WITH SERVICES

The undersigned hereby elects pursuant to Section 83(b) of the Internal Revenue Code of 1986,
as amended, to include in the undersigned’s gross income for the 2008 taxable year the excess (if
any) of the fair market value of the property described below, over the amount the undersigned paid
for such property, if any, and supplies herewith the following information in accordance with the
Treasury regulations promulgated under Section 83(b):

1. The undersigned’s name, address and taxpayer identification (social security) number are:

	 	 	 
	Name:
	 	 
	 

	 	 

	 	 	 
	Address:
	 	 
	 

	 	 

	 	 	 
	Social Security #:
	 	 
	 

	 	 

The undersigned’s spouse’s name, address and taxpayer identification (social security) number
are (complete if applicable):

	 	 	 
	Name:
	 	 
	 

	 	 

	 	 	 
	Address:
	 	 
	 

	 	 

	 	 	 
	Social Security #:
	 	 
	 

	 	 

2. The property with respect to which the election is made consists of                      Class C Units
(the “Award”) of Hard Rock Hotel Holdings, LLC, a Delaware limited liability company (the
“Company”), representing an interest in the future profits, losses and distributions of the
Company.

3. The date on which the above property was transferred to the undersigned was
                                        , 2008, and the taxable year to which this election relates is 2008.

4. The above property is subject to the following restrictions: (a) forfeiture and/or a right
of repurchase by the Company if the undersigned ceases to be an employee of, or consultant to, the
Company, and (b) certain other restrictions pursuant to the Class C Profits Interest Agreement
evidencing the Award and the Second Amended and Restated Limited Liability Company Agreement of
Hard Rock Hotel Holdings, LLC, dated as of May 30, 2008, as
amended on August 1, 2008, and as further amended, modified or supplemented from time to time,
should the undersigned wish to transfer the Award (in whole or in part).

 

A-1

 

5. The fair market value of the above property at the time of transfer (determined without
regard to any restrictions other than those which by their terms will never lapse) is $0.

6. The amount paid for the above property by the undersigned was $0.

7. A copy of this election has been furnished to the Company, and the original will be filed
with the income tax return of the undersigned to which this election relates.

	 	 	 
	Date:                     , 2008
	 	 
	 

	 	 
	 

	 	Participant
	Date:                     , 2008
	 	 
	 

	 	 
	 

	 	Participant’s Spouse

 

A-2

 

EXHIBIT B

FORM OF JOINDER

The undersigned is executing and delivering this Joinder Agreement pursuant to the Second
Amended and Restated Limited Liability Company Agreement of Hard Rock Hotel Holdings, LLC (the
“Company”), dated as of May 30, 2008, as amended on August 1, 2008, and as further amended,
modified or supplemented from time to time (the “LLC Agreement”).

By executing this Joinder Agreement and delivering it to the Company, the undersigned hereby
agrees to become a party to, to be bound by, and to comply with the provisions of the LLC Agreement
in the same manner as if the undersigned were an original signatory to such agreement, and all of
the undersigned’s Class C Units of the Company shall be subject to the terms and conditions of the
LLC Agreement.

By executing this Joinder Agreement and delivering it to the Company, the undersigned hereby
represents and warrants that he or she is (you must check one of the following boxes): o not
married; OR  o married and is concurrently herewith delivering a completed and signed Consent By
Spouse to the Company.

Accordingly, the undersigned has executed and delivered this Joinder Agreement as of

 _____, 2008.

	 	 	 
	Participant:
	 	 
	 
	 	 
	 

(Sign Name)

	 	 
	 
	 	 
	 

(Print Name)

	 	 
	 
	 	 
	ACKNOWLEDGED & ACCEPTED:

HARD ROCK HOLDINGS, LLC
	 	 

	 	 	 	 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Its: 	 	 
	 

 

B-1

 

CONSENT BY SPOUSE

I acknowledge that I have read the Class C Profits Interest Agreement (as amended, modified or
supplemented from time to time, the “Agreement”), by and between Hard Rock Hotel Holdings, LLC (the
“Company”), and my spouse,                                           and the Hard Rock Hotel Holdings, LLC 2008 Profit
Interest Award Plan (as amended, modified or supplemented from time to time, the “Plan”), and that
I know its contents. I am aware that by its provisions, my spouse agrees to sell, convert, dispose
of, or otherwise transfer his or her Class C Units of the Company (the “Award”) hereunder under
certain circumstances. I hereby consent to such sale, conversion, disposition or other transfer;
and approve of the provisions of this Agreement and any action hereafter taken by my spouse
thereunder with respect to his or her Award, and I agree to be bound thereby.

I further agree that in the event of my death or a dissolution of marriage or legal
separation, my spouse shall have the absolute right to have my interest, if any, in the Award set
apart to him or her, whether through a will, a trust, a property settlement agreement or by decree
of court, or otherwise, and that if he or she be required by the terms of such will, trust,
settlement or decree, or otherwise, to compensate me for said interest, that the price shall be an
amount equal to: (i) the Fair Market Value (as defined in the Plan) of the Award;
multiplied by (ii) my percentage of ownership in such interest.

This consent, including its existence, validity, construction, and operating effect, and the
rights of each of the parties hereto, shall be governed by and construed in accordance with the
laws of the State of Delaware without regard to otherwise governing principles of choice of law or
conflicts of law.

	 	 	 	 	 
	Dated:
	 	 
	 	 

	 	 	 
	Participant’s Spouse:
	 	 
	 
	 	 
	 

(Sign Name)

	 	 
	 
	 	 
	 

(Print Name)

	 	 

 

B-2

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