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EXHIBIT 10.10    
  

 
  LEHMAN BROTHERS HOLDINGS INC.
  EMPLOYEE INCENTIVE PLAN
  As amended through July 23, 2002    
  

SECTION 1—PURPOSE  

        The purpose of the Lehman Brothers Holdings Inc. Employee Incentive Plan (the "Plan") is to strengthen Lehman Brothers Holdings Inc. (the "Company")
by providing selected employees of the Company with the opportunity to acquire a proprietary and vested interest in the growth and performance of the Company, thus generating an increased incentive to
contribute to the Company's future success and prosperity, enhancing the value of the Company for the benefit of stockholders, and enhancing the Company's ability to attract and retain individuals of
exceptional talent. 

        The
purposes of the Plan are to be achieved through the grant of various types of stock-based awards. 

SECTION 2—DEFINITIONS  

        For purposes of the Plan, the capitalized terms shall have the meanings ascribed to them in Exhibit A hereof. 

SECTION 3—SHARES SUBJECT TO THE PLAN  

        (a)  Shares
of Common Stock which may be issued under the Plan may be either authorized and unissued shares of Common Stock or authorized and issued shares of Common Stock
held in the Company's treasury, or any combination thereof. Subject to adjustment as provided in Section 14, the number of shares of Common Stock with respect to which Awards (whether
distributable in shares of Common Stock or in cash) may be granted under the Plan shall be 246 million shares. The maximum number of shares of Common Stock available for stock options, stock
appreciation rights or Other Stock-based Awards that may be granted to a Participant during a calendar year shall not exceed two million. 

        (b)  Notwithstanding
the last sentence of Section 3(a), to the extent that the number of shares of Common Stock with respect to which Awards may be granted under the
Plan to an individual in any calendar year exceeds the number of shares of Common Stock with respect to which Awards were granted under the Plan during that calendar year, such excess shall be
available for grant under the Plan in succeeding calendar years. 

        (c)  In
the event that any other Award subject to repurchase or forfeiture rights is reacquired by the Company or if any Award is canceled, terminates or expires unexercised
(except with respect to a stock option which terminates on the exercise of a stock appreciation right) for any reason under the Plan, any Common Stock allocated in connection with such Award shall
thereafter again be available for grant pursuant to the Plan. 

SECTION 4—ELIGIBILITY  

        Selected employees, officers, directors and consultants to the Company and its subsidiaries are eligible to be Participants in the Plan. 

SECTION 5—ADMINISTRATION  

        The Plan shall be administered by the Committee, which shall have the power to select those Participants who shall receive Awards and to determine the terms of
such Awards. As to the selection of, and the terms of Awards granted the Committee may delegate any or all of its responsibilities to officers or employees of the Company. 

        The
Committee's authority hereunder shall include, without limitation, the establishment of vesting schedules or exercisability in installments with respect to Awards. The Committee may,
in its sole discretion, accelerate or waive vesting or exercise periods or the lapse of restrictions on all or any 

 

portion of any Award, or extend the exercisability (including to extend or provide for post-termination exercisability) of stock options or stock appreciation rights; provided that such
exercisability shall not extend past ten years from the date of grant of any incentive stock options. 

        Subject
to the provisions of the Plan, the Committee shall be authorized to interpret the Plan, to establish, amend and rescind any rules and regulations relating to the Plan, to
determine the terms and provisions of any agreements entered into hereunder, and to make all other determinations necessary or advisable for the administration of the Plan. The Committee may correct
any defect, supply any omission or reconcile any inconsistency in the Plan or in any Award in the manner and to the extent it shall deem desirable to carry the Plan or any such Award into effect. The
determinations of the Committee in the administration of the Plan, as described herein, shall be final and conclusive. 

        The
validity, construction and effect of the Plan and any rules and regulations relating to the Plan shall be determined in accordance with the laws of the State of Delaware and
applicable Federal law. 

SECTION 6—STOCK OPTIONS  

        (a)  Any
stock options granted under the Plan shall be in such form as the Committee may from time to time approve and shall be subject to the terms and conditions provided
herein and such additional terms and conditions not inconsistent with the terms of the Plan as the Committee shall deem desirable. 

        (b)  Stock
options may be granted to any Participant. Each grant of stock options shall specify whether the underlying options are intended to be incentive stock options or
non-incentive stock options. In the case of incentive stock options, the terms and conditions of such grants shall be subject to and comply with such requirements as may be prescribed by
Section 422(b) of the Code, as from time to time amended, and any implementing regulations, including, but not limited to, the requirement that such stock options are exercisable during the
Participant's lifetime only by such Participant. The Committee shall establish the option price at the time each stock option is granted, which price shall not be less than 100 percent of the
Fair Market Value of the Common Stock on the date of grant. 

        (c)  No
stock options may be exercisable later than ten years after their date of grant. The option price of each share of Common Stock as to which a stock option is
exercised shall be paid in full at the time of such exercise. Such payment may be made at the sole discretion of the Committee, pursuant to and in accordance with criteria and guidelines established
by the Committee (which criteria and guidelines may be different for executive officers and for other Participants), as the same may be modified from time to time, (i) in cash, (ii) by
tender of shares of Common Stock already owned by the Participant, valued at Fair Market Value as of the date of exercise, (iii) if authorized by the Committee, by withholding pursuant to the
election of the Participant, which election is subject to the disapproval of the Committee, from those shares that would otherwise be obtained upon exercise of the option a number of shares having a
Fair Market Value equal to the option price, (iv) if authorized by the Committee, and in combination with services rendered by the exercising Participant, by delivery of a properly executed
exercise notice together with irrevocable instructions to a securities broker (or, in the case of pledges, lender) approved by the Company to, (a) sell shares of Common Stock subject to the
option and to deliver promptly to the Company a portion of the proceeds of such sale transaction on behalf of the exercising Participant to pay the option price, or (b) pledge shares of Common
Stock subject to the option to a margin account maintained with such broker or lender, as security for a loan, and such broker or lender, pursuant to irrevocable instructions, delivers to the Company
the loan proceeds, at the time of exercise to pay the option price, (v) by any combination of (i), (ii), (iii) or (iv) above or (vi) by other means that the Committee deems
appropriate. 

        (d)  A
stock option holder may, in the discretion of the Committee, have the right to surrender a stock option or any portion thereof to the Company within 30 days
following a Change in Control and to receive from the Company in exchange therefor a cash payment in an amount equal to (a) the number of unexercised shares of Common Stock under the option
which are being surrendered 

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multiplied by (b) the excess of (i) the greater of (A) the highest price per share of Common Stock paid in connection with the Change in Control or (B) the highest Fair
Market Value per share of Common Stock in the 90-day period preceding such Change in Control, over (ii) the purchase price of the option as set forth in the underlying option
agreement (the foregoing, a "Limited SAR"). 

SECTION 7—STOCK APPRECIATION RIGHTS  

        (a)  Stock
appreciation rights may be granted independent of any stock option or in conjunction with all or any part of any stock option granted under the Plan, either at the
same time as the stock option is granted or at any later time during the term of the option. Stock appreciation rights shall be subject to such terms and conditions as determined by the Committee, not
inconsistent with the provisions of the Plan. 

        (b)  Upon
exercise, a stock appreciation right shall entitle the Participant to receive from the Company an amount equal to the excess of the Fair Market Value of a share of
Common Stock on the date of
exercise of the stock appreciation right over the per share grant or option price, as applicable (or such lesser amount as the Committee may determine at the time of grant), multiplied by the number
of shares of Common Stock with respect to which the stock appreciation right is exercised. Upon the exercise of a stock appreciation right granted in connection with a stock option, the stock option
shall be canceled to the extent of the number of shares as to which the stock appreciation right is exercised, and upon the exercise of a stock option granted in connection with a stock appreciation
right or the surrender of such stock option, the stock appreciation right shall be canceled to the extent of the number of shares as to which the stock option is exercised or surrendered. The
Committee shall determine whether the stock appreciation right shall be settled in cash, Common Stock or a combination of cash and Common Stock. 

        (c)  A
holder of a stock appreciation right may, in the discretion of the Committee, have the right to surrender the stock appreciation right or any portion thereof to the
Company within 30 days following a Change in Control and to receive from the Company in exchange therefor a cash payment in an amount equal to (a) the number of shares of Common Stock
under the stock appreciation right which are being exercised, multiplied by (b) the excess of (i) the greater of (A) the highest price per share of Common Stock paid in connection
with the Change in Control or (B) the highest Fair Market Value per share of Common Stock in the 90 day period preceding such Change in Control, over (ii) the per share grant
price of the stock appreciation right as set forth in the underlying agreement. 

SECTION 8—OTHER STOCK-BASED AWARDS  

        (a)  Other
Awards of Common Stock and Awards that are valued in whole or in part by reference to, or otherwise based on, the Fair Market Value of Common Stock (all such
Awards being referred to herein as "Other Stock-based Awards"), may be granted under the Plan in the discretion of the Committee. Other Stock-based Awards shall be in such form as the Committee shall
determine, including without limitation, (i) the right to purchase shares of Common Stock, (ii) shares of Common Stock subject to restrictions on transfer until the completion of a
specified period of service, the occurrence of an event or the attainment of performance objectives, each as specified by the Committee, and (iii) shares of Common Stock issuable upon the
completion of a specified period of service, the occurrence of an event or the attainment of performance objectives, each as specified by the Committee. Other Stock-based Awards may be granted alone
or in addition to any other Awards made under the Plan. All references in the preceding sentence to "specified period of service," in the case of Other Stock-based Awards which (i) are not in
lieu of cash compensation to employees generally, (ii) are not paid to recruit a new employee in an amount of less than 5% of the total awards available for grant under the Plan or
(iii) are not subject to the attainment of performance objectives, shall provide that vesting, restrictions on transfer or some other comparable restriction which incents continued performance
of the recipient, will be for a period of not less than three years (although vesting or lapsing may occur in tranches over the three years), unless there is a Change in Control or 

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the recipient retires, becomes disabled or dies. Subject to the provisions of the Plan, the Committee shall have sole and absolute discretion to determine to whom and when such Other Stock-based
Awards will be made, the number of shares of Common Stock to be awarded under (or otherwise
related to) such Other Stock-based Awards and all other terms and conditions of such Awards. The Committee shall determine whether Other Stock-based Awards shall be settled in cash, Common Stock or a
combination of cash and Common Stock. 

        (b)  With
respect to any restricted stock units granted under the Plan, the obligations of the Company or any Subsidiary are limited solely to the delivery of shares of
Common Stock on the date when such shares of Common Stock are due to be delivered under each Agreement, and in no event shall the Company or any Subsidiary become obligated to pay cash in respect of
such obligation (except that the Company or any Subsidiary may pay to Participants amounts in cash in respect of a restricted stock unit equal to cash dividends paid to a holder of shares of Common
Stock, for fractional shares or for any amounts payable in cash upon the occurrence of a Change in Control). 

SECTION 9—DIVIDENDS, EQUIVALENTS AND VOTING RIGHTS  

        Awards other than stock options and stock appreciation rights may, at the discretion of the Committee, provide the Participant with dividends or dividend
equivalents and voting rights prior to either vesting or earnout. 

SECTION 10—AWARD AGREEMENTS  

        Each Award under the Plan shall be evidenced by an agreement setting forth the terms and conditions, not inconsistent with the provisions of the Plan, as
determined by the Committee, which shall apply to such Award. 

SECTION 11—WITHHOLDING  

        The Company shall have the right to deduct from all amounts paid to any Participant in cash (whether under this Plan or otherwise) any taxes required by law to be
withheld therefrom. In the case of payments of Awards in the form of Common Stock, at the Committee's discretion, the Participant may be required to pay to the Company the amount of any taxes required
to be withheld with respect to such Common Stock, or, in lieu thereof, the Company shall have the right to retain the number of shares of Common Stock the Fair Market Value of which equals the amount
required to be withheld. Without limiting the foregoing, the Committee may, in its discretion and subject to such conditions as it shall impose, permit share withholding to be done at the
Participant's election. 

SECTION 12—NON-TRANSFERABILITY  

        No Award shall be assignable or transferable, and no right or interest of any Participant in any Award shall be subject to any lien, obligation or liability of
the Participant, except by will, the laws of descent and distribution, or as otherwise set forth in the Award agreement. 

SECTION 13—NO RIGHT TO EMPLOYMENT OR CONTINUED PARTICIPATION IN PLAN/NO RIGHTS AS STOCKHOLDERS  

        (a)  No
person shall have any claim or right to the grant of an Award, and the grant of an Award shall not be construed as giving a Participant the right to be retained in
the employ of the Company or to be eligible for any subsequent Awards. Further, the Company expressly reserves the right at any time to dismiss a Participant free from any liability or any claim under
the Plan, except as provided herein or in any agreement entered into hereunder. 

        (b)  The
grant of an Award shall not be construed as giving a Participant the rights of a stockholder of Common Stock unless and until shares of Common Stock have been issued
to Participants pursuant to Awards hereunder. 

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SECTION 14—ADJUSTMENT OF AND CHANGES IN COMMON STOCK  

        In the event of any change in the outstanding shares of Common Stock by reason of any Common Stock dividend or split, recapitalization, merger, consolidation,
spin-off, combination or exchange of shares or other corporate exchange, or any distribution to stockholders of Common Stock other than regular cash dividends, the Committee shall make a
substitution or adjustment to the number or kind of shares of Common Stock or other securities issued or reserved for issuance pursuant to the Plan, and to outstanding Awards, as well as the option
price or other affected terms of such Awards as in its judgment shall be necessary to preserve the Participant's rights substantially proportionate to the rights existing prior to such event. 

        Unless
otherwise provided in an award agreement, after a merger of one or more corporations into the Company or after a consolidation of the Company and one or more corporations (a
"Merger Event") in which the Company shall be the surviving or resulting corporation, an Award holder shall, where
applicable, at the same cost, be entitled upon the exercise of an Award, to receive (subject to any action required by stockholders) such securities of the surviving or resulting corporation as shall
be equivalent to the shares underlying such Award as nearly as practicable to the nearest whole number and class of shares of stock or other securities. 

        Unless
otherwise provided in an award agreement, if the Company enters into any agreement with respect to any transaction which would, if consummated, result in a Merger Event in which
the Company will not be the surviving corporation, the Committee in its sole discretion and without liability to any person shall determine what actions shall be taken with respect to outstanding
Awards, if any, including, without limitation, the payment of a cash amount in exchange for the cancellation of an Award or the requiring of the issuance of substitute Awards that will substantially
preserve the value, rights and benefits of any affected Awards previously granted hereunder as of the date of the consummation of the Merger Event. 

SECTION 15—AMENDMENT  

        The Committee or the Board may amend, suspend or terminate the Plan or any portion hereof at any time. 

SECTION 16—UNFUNDED STATUS OF PLAN  

        The Plan is intended to constitute an "unfunded" plan for long-term incentive compensation. With respect to any payments not yet made to a
Participant, including any Participant optionee, by the Company, nothing herein contained shall give any Participant any rights that are greater than those of a general creditor of the Company. In its
sole discretion, the Committee may authorize the creation of trusts or other arrangements to meet the obligations created under the Plan to deliver Common Stock or payments in lieu thereof or with
respect to options, stock appreciation rights and other Awards under the Plan; provided, however, that the existence of such trusts or other arrangements is consistent with the unfunded status of the
Plan. 

SECTION 17—EFFECTIVE DATE  

        This Plan shall be effective on April 5, 1995. No Awards may be granted under the Plan on or after April 4, 2005. 

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EXHIBIT A    
  

        (a)  "Award"
shall mean any type of stock-based award granted pursuant to the Plan. 

        (b)  "Board"
shall mean the Board of Directors of the Company; provided, however, that any action taken by a duly authorized committee of the Board within the scope of
authority delegated to such committee by the Board shall be considered an action of the Board for purposes of this Plan. 

        (c)  "Change
in Control" shall mean the occurrence during the term of the Plan of: 

        a)    The
commencement (within the meaning of Rule 14d-2 under the Securities Exchange Act of 1934 (the "Exchange Act")) of a tender offer for more than 20%
of the Company's outstanding shares of capital stock having ordinary voting power in the election of directors (the "Voting Securities"); 

        b)    An
acquisition (other than directly from the Company) of any voting securities of the Company by any "Person" (as the term person is used for purposes of
Section 13(d) or 14(d) of the Exchange Act) immediately after which such Person has "Beneficial Ownership" (within the meaning of Rule 13d-3 promulgated under the Exchange
Act) of 20% or more of the combined voting power of the Company's then outstanding Voting Securities; provided, however, in determining whether a Change in Control has occurred, Voting Securities
which are acquired in a "Non-Control Acquisition" (as hereinafter defined) shall not constitute an acquisition which would cause a Change in Control. A "Non-Control
Acquisition" shall mean an acquisition by (i) an employee benefit plan (or a trust forming a part thereof or a trustee thereof acting solely in its capacity as trustee) maintained by
(A) the Company or (B) any corporation or other Person of which a majority of its voting power or its voting equity securities or equity interest is owned, directly or indirectly, by the
Company (for purposes of this definition, a "Subsidiary"), (ii) the Company or its Subsidiaries, or (iii) any Person who files in connection with such acquisition a Schedule 13D
which expressly disclaims any intention to seek control of the Company and does not expressly reserve the right to seek such control; provided, however, that any amendment to such statement of intent
which either indicates an intention or reserves the right to seek control shall be deemed an "acquisition" of the securities of the Company reported in such filing as beneficially owned by such Person
for purposes of this paragraph (b); 

        c)    The
individuals who, as of the effective date of the 1994 initial public trading in Company shares, are members of the Board (the "Incumbent Board"), ceasing for any
reason to constitute at least a majority of the members of the Board; provided, however, that if the election, or nomination for election by the Company's common stockholders, of any new director was
approved by a vote of at least two-thirds of the Incumbent Board, such new director shall, for purposes of this Plan, be
considered as a member of the Incumbent Board; provided further, however, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result
of either an actual or threatened "Election Contest" (as described in Rule 14a-11 promulgated under the Exchange Act or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board (a "Proxy Contest") including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest; or 

        d)    Approval
by stockholders of the Company of: 

        (i)    A
merger, consolidation or reorganization involving the Company, unless such merger, consolidation or reorganization is a "Non-Control Transaction"; i.e.,
meets each of the requirements described in (A), (B) and (C) below: 

        (A)  the
stockholders of the Company, immediately before such merger, consolidation or reorganization, own, directly or indirectly, immediately following such merger, 

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consolidation or reorganization, at least the Applicable Minimum Percentage (as defined below) of the combined voting power of the outstanding voting securities of the corporation resulting from such
merger or consolidation or reorganization (the "Surviving Corporation") in substantially the same proportion as their ownership of the Voting Securities immediately before such merger, consolidation
or reorganization; 

        (B)  the
individuals who were members of the Incumbent Board immediately prior to the execution of the agreement providing for such merger, consolidation or reorganization
constitute at least the Applicable Minimum Proportion (as defined below) of the members of the board of directors of the Surviving Corporation immediately following the consummation of such merger,
consolidation or reorganization; and 

        (C)  no
Person other than the Company, any Subsidiary, any employee benefit plan (or any trust forming a part thereof or a trustee thereof acting solely in its capacity as
trustee) maintained by the Company, the Surviving Corporation, or any Subsidiary, or any Person who, immediately prior to such merger, consolidation or reorganization had Beneficial Ownership of 20%
or more of the then outstanding Voting Securities has Beneficial Ownership of 20% or more of the combined voting power of the Surviving Corporation's then outstanding voting securities immediately
following the consummation of such merger, consolidation or reorganization; 

        (ii)  A
complete liquidation or dissolution of the Company; or 

        (iii)  An
agreement for the sale or other disposition of all or substantially all of the assets of the Company to any Person (other than a transfer to a Subsidiary). 

        With
respect to paragraph (d)(i) above, "Applicable Minimum Percentage" means (1) eighty percent (80%) with respect to Awards made prior to November 14, 2000,
and (2) fifty percent (50%) with respect to Awards made on or after November 14, 2000; and "Applicable Minimum Proportion" means (1) two-thirds with respect to Awards
made prior to November 14, 2000, and (2) a majority with respect to Awards made on or after November 14, 2000. 

        Notwithstanding
the foregoing, a Change in Control shall not be deemed to occur solely because any Person (the "Subject Person") acquired Beneficial Ownership of more than the permitted
amount of the outstanding Voting Securities as a result of the acquisition of Voting Securities by the Company which, by reducing the number of Voting Securities outstanding, increases the
proportional number of shares Beneficially Owned by the Subject Persons, provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of
Voting Securities by the Company, and thereafter such Beneficial Owner acquires any additional Voting Securities which increases the percentage of the then outstanding Voting Securities Beneficially
Owned by the Subject Person, then a Change in Control shall occur. 

        (d)  "Code"
shall mean the Internal Revenue Code of 1986, as from time to time amended. 

        (e)  "Committee"
shall mean the Compensation and Benefits Committee of the Company. 

        (f)    "Common
Stock" shall mean the common stock of the Company, $.10 par value. 

        (g)  "Company"
shall mean Lehman Brothers Holdings Inc. and, except as otherwise specified in this Plan in a particular context, any successor thereto, whether by
merger, consolidation, purchase of substantially all its assets or otherwise. 

        (h)  "Fair
Market Value" on any date means the closing price of the shares on such date on the principal national securities exchange on which such shares are listed or
admitted to trading (or, if such exchange is not open on such date, the immediately preceding date on which such exchange is open), the arithmetic mean of the per share closing bid price and per share
closing asked price on such date 

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as quoted on the National Association of Securities Dealers Automated Quotation System, or such other market in which such prices are regularly quoted, or, if there have been no published bid or
asked quotations with respect to such shares on such date, the Fair Market Value shall be the value
established by the Committee in good faith and, in the case of an incentive stock option, in accordance with Section 422 of the Code. 

        (i)    "Other
Stock-based Award" shall mean any of those Awards described in Section 8 hereof. 

        (j)    "Participant"
shall mean an employee, officer, director or consultant of the Company. 

        (k)  "Subsidiary"
shall mean any corporation which at the time qualifies as a subsidiary of the Company under the definition of "subsidiary corporation" in
Section 424(f) of the Code, as amended from time to time. 

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EXHIBIT 10.10

LEHMAN BROTHERS HOLDINGS INC. EMPLOYEE INCENTIVE PLAN As amended through July 23, 2002

EXHIBIT AQuickLinks
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Exhibit 10.1    
  

September 12,
2002 

Gérard
Charlier

6 Rue de Mezières

75006 Paris, France 

Dear
Mr. Charlier: 

Subject
to your acceptance in the manner indicated below, Paul-Son Gaming Corporation (the "Company") hereby offers to employ you on the terms and conditions hereinafter set forth. 

1.    EMPLOYMENT—DUTIES.  

        The Company hereby agrees to employ you, and you hereby accept such employment by the Company, as President and Chief Executive Officer of the Company and, to the
extent allowed by applicable laws, all its existing subsidiaries, Paul-Son Gaming Supplies ("P-S Gaming"); Authentic Products; Industrias Paul-Son Mexico, SA CV
("P-S Mexico"); Paul-Son Mexicana, SA CV ("P-S Mexicana"); The Bud Jones Company, Inc., a Nevada corporation ("Bud Jones"), and Etablissements Bourgogne et
Grasset S.A., a French corporation ("B&G") (P-S Gaming, Authentic Products, P-S Mexico, P-S Mexicana, Bud Jones and B&G are sometimes collectively referred to as
the "Subsidiaries" and individually as a "Subsidiary"). You shall report to and be under the direction and control of the Board of Directors of the Company. Subject to the limitations set forth in
Section 2 hereof, you shall have supervision and control over, and responsibility for, the day-to-day operations of the Company and the Subsidiaries and such other
powers and duties as may from time to time be prescribed by the Board of Directors. You agree to devote your best efforts and all of your business time and attention to the business of the Company and
its Subsidiaries and to the best interests of the Company and its Subsidiaries, and during the term of this Agreement, you shall not engage in any other business activity. 

2.    COMPENSATION; EXPENSES.  

        (a)  While
you are serving as President and Chief Executive Officer of the Company and its Subsidiaries, you shall be paid the following annual salaries (the "Salaries"),
payable in accordance with the executive payroll schedule in effect from time to time at the Company and B&G: 

	(i)
	by
B&G: One Hundred Fifteen Thousand Euros (E 115,000); and

	(ii)
	by
Paul-Son or Bud Jones (based on your visa): One Hundred Thousand Dollars (US$ 100,000). 

        (b)  While
you are serving as President and Chief Executive Officer of the Company and its Subsidiaries, the Company shall pay directly or pay to you a monthly housing
allowance (the "Housing Allowance") not to exceed One Thousand Five Hundred Dollars ($ 1,500), payable in advance to provide you with housing in Las Vegas. The first installment of the Housing
Allowance shall be paid on the date hereof. Additionally, the Company shall pay for the assistance of professional tax consultants/accountants needed to prepare your tax filings in the United States
and France. Additionally, you shall be entitled to the use of two automobiles (one located in Las Vegas and the other located in France) for your exclusive use on business and personal matters, and
the Company shall pay all operating expenses associated therewith, including, without limitation, collision and liability insurance. The Company agrees that it will periodically acquire new
replacement vehicles as you reasonably request during the Term of this Agreement, subject to approval by the Board of Directors as to both the timing and cost of such replacement vehicles. 

        (c)  While
serving as President and Chief Executive Officer of the Company and its Subsidiaries, you shall be reimbursed by the Company and B&G for reasonable expenses
incurred by you in connection with performing services hereunder in accordance with the Company's policy at the time. You shall submit to the Company written, itemized expense accounts and such
additional substantiation and justification as the Company may reasonably request. 

 

3.    STOCK OPTIONS.  

        Subject to the terms and conditions hereunder and in the Company's 1994 Long term Incentive Plan (the "Plan"), the Company hereby grants you the following stock
options: 

        (a)  an
option to purchase 200,000 shares of Common Stock of the Company at a price equal to the last sale price of the Company's Common Stock on the date of this Agreement.
The option shall vest on the fifth anniversary of the date hereof and shall be exercisable during the five (5) year period following the date of vesting; and 

        (b)  an
option to purchase 100,000 shares of Common Stock of the Company at a price equal to the last sale price of the Company's Common Stock on the date of this Agreement.
The option shall vest only if and when the Company's audited annual consolidated financial statements show a net profit after tax of at least $2,000,000; provided, however, that if the option has not
vested by the fifth anniversary of the date hereof the option shall automatically terminate. The option shall be exercisable during the five (5) year period following the date of vesting. In
the event your employment with the Company is terminated for any reason whatsoever, this option, if not vested, shall be forfeited. In no event shall either option be exercisable more than ten
(10) years after the date of grant. 

4.    BENEFIT PLANS, VACATIONS, ETC.  

        (a)  During
the term of this Agreement, you shall be eligible to participate in any medical, retirement, pension or other benefit plans or arrangements made available by the
Company to its employees. 

        (b)  You
shall be entitled to receive four (4) weeks of paid vacation during each year of this Agreement in accordance with Company policy in effect from time to time.
Vacation shall be taken at such times as are mutually agreed upon by you and the Chairman of the Board of the Company. 

5.    TERM.  

        Unless sooner terminated as provided in Section 6 hereof, the term of your employment (the "Term") shall be for a period of five (5) years
commencing on September 12, 2002 and terminating on September 12, 2007. 

6.    TERMINATION.  

        (a)  Termination
By the Company With or Without Cause. The Company may terminate your employment hereunder at any time, for any reason or for no reason; and upon any
termination all unaccrued payments of your Salaries and non-vested benefits will cease, except as expressly provided herein. 

        (b)  Resignation.
You may voluntarily resign from the Company on written notice of your intention to resign and your employment shall terminate on the effective date of the
resignation. If you resign or otherwise voluntarily leave the Company's employment, however, you shall forfeit all unaccrued rights to Salaries and non-vested benefits, from and after the
effective date of the resignation. 

        (c)  Death,
Disability or Cause. Upon your death, or upon your "Permanent Disability" or termination for "Cause" (each as hereinafter defined), all unaccrued payments of
Salaries and non-vested benefits shall cease (but benefits provided under any Company benefit plans or other provisions, as applicable, shall be provided in accordance with the terms of
those plans or provisions). 

Page 2 of 6

 

        (d)  Severance
Benefits. If your employment is terminated by the Company during the Term for any reason other than death, Permanent Disability or Cause (each as hereinafter
defined), you shall be entitled to receive the following amounts and benefits: 

	(i)
	the
sum of your full base Salaries through the date of termination of your employment at the rate in effect at the time of termination, and an amount equal to your accrued vacation
time. These amounts shall be paid to you in a lump sum within five (5) days following the date of termination;

	(ii)
	subject
to the provisions of Section 7(c), your Salaries at the rate in effect on the date of termination, payable for the remainder of the Term in accordance with the
Company's and B&G's executive payroll schedule then in effect; provided that in any event, payments under this subsection 6(d)(ii) shall continue for not less than two (2) years from the
date of termination. The payment of the amounts set forth in this subsection 6(d) shall be your exclusive remedy in the event the Company terminates your employment hereunder for any reason other than
death, Permanent Disability or Cause; and

	(iii)
	the
medical and dental benefits provided to you and your dependents on the date of termination shall be continued for a period of twelve (12) months following your date of
termination at no cost to you or your dependents. This may be accomplished through payment by the Company of your premiums under the "continuation coverage" provisions of the Consolidated Omnibus
Budget Reconciliation Act of 1985, as amended ("COBRA"). 

        (e)  Certain
Definitions 

	(i)
	Permanent Disability.    A termination by the Company of your employment based on "Permanent Disability" shall mean
termination because of your absence from your duties with the Company and/or any Subsidiary on a full-time basis for 90 consecutive calendar days, as a result of your incapacity due to
physical or mental illness, unless within thirty (30) days after Notice of Termination (as hereinafter defined) is given following such absence, you shall have returned to the
full-time performance of your duties.

	(ii)
	Cause.    Termination of your employment for "Cause" shall mean termination upon: (A) your willful and continued
failure to substantially perform your duties with the Company and the Subsidiaries (other than any such failure resulting from your incapacity due to physical or mental illness) or (B) your
willful engaging in misconduct which is materially injurious to the Company, monetarily or otherwise, or (C) your conviction of, or plea of nolo contendere  to, a felony, or (D) your breach of
Section 7 hereof. For purposes of this paragraph, no act, or failure to act, on your part shall be considered "willful" unless
done, or omitted to be done, by you not in good faith and without reasonable belief that your action or omission was in the best interest of the Company.

	(iii)
	Notice of Termination.    Any purported termination of your employment by you or the Company shall be communicated by
written Notice of Termination. For purposes of this Agreement, a "Notice of Termination" shall mean a notice that shall indicate the specified termination provision in this Agreement relied upon and
shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of your employment under the provision indicated. 

7.    CONFIDENTIALITY AND RESTRICTIONS.  

        (a)  You
hereby recognize that the value of the Confidential Information, as defined below, of the Company and its affiliates, and the Confidential Information to be
disclosed to you by the Company and its affiliates in the course of your employment with the Company is attributable substantially to the 

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fact that such Confidential Information has been and continues to be maintained by the Company, B&G, Bud Jones and their respective affiliates and their respective licensors, suppliers, contractors
and customers in the strictest confidentiality and secrecy and is unavailable to others without the expenditure of substantial time, effort or money. You, therefore, covenant and agree to keep
strictly secret and confidential the Confidential Information in accordance with the following provisions of this Section 7(a). You covenant and agree that, while you are serving as President
and Chief Executive officer of the Company and its Subsidiaries, and at all times thereafter, you shall safeguard the Confidential Information, and you shall not, directly or indirectly, use or
disclose any such Confidential Information except as required in the course of your employment with the Company. In implementation of the foregoing, you shall not disclose any of the Confidential
Information to any employee or consultant except to the extent that such disclosure is necessary for the effective performance of such employee's or consultant's responsibilities to the Company. The
obligations undertaken by you pursuant to this Section 7(a) shall not apply to any Confidential Information which hereafter shall become published or otherwise generally available to the
public, except in consequence of an act or omission by you in contravention of the obligations hereinabove set forth in this Section 7(a), and such obligations shall, as so limited, survive
expiration or termination of this Agreement. As used in this Section 7, "Confidential Information" means all information not in the public domain relating to the business of the Company, B&G,
Bud Jones, their respective affiliates, and their respective customers, licensors, suppliers and contractors and the products and programs developed and/or commercialized by any of the foregoing,
including, without limitation, information relating to inventions, ideas, discoveries, know-how, methods, research, engineering, processes, data, databases, operations, techniques,
customer lists, and other trade secrets. Notwithstanding anything to the contrary herein, you shall not be responsible for any disclosure by a third person (including employees) so long as your
disclosure to that third party was not in violation of this Section 7. 

        (b)  On
the termination of your employment with the Company for any reason, you will deliver to the Company all correspondence, documents, papers and other media containing
information about the Confidential Information together with all copies thereof in your possession or control. 

        (c)  While
you are serving as President and Chief Executive Officer of the Company and its Subsidiaries and for a period which is the longer of (i) two
(2) years after the termination of your employment with the Company for any reason whatsoever; or (ii) the period during which the Company is paying you Salaries in accordance with
subsection 6(d)(ii) hereof (the "Post-Termination Period"), you shall not engage (and shall assure that none of your agents or affiliates engages and use your best efforts to assure
that none of your associates engages) in any Restricted Activity (as hereinafter defined) anywhere in the world, nor directly or indirectly perform services (as employee, manager, consultant,
independent contractor, advisor or otherwise) for any business, or own any equity interest in any business (other than an aggregate of not more than one percent (1%) of the stock issued by any
publicly held corporation) that engages in any Restricted Activity. In addition, during such period, you shall not (and shall assure that none of your agents or affiliates shall and use your best
efforts to assure that none of your associates shall) directly or indirectly solicit, raid or entice, or otherwise induce any customer or supplier of the Company, B&G, Bud Jones, or any of their
respective affiliates to cease doing business therewith or to do business with another business engaged in any Restricted Activity. As used herein, "Restricted Activities" means engaging in the
research, development, manufacture, marketing, promotion, distribution or sale of any product, process or service which competes with any product, process or service offered by the Company, B&G, Bud
Jones or any of their respective affiliates. A product, process or service "competes" with a product, process or service of the Company, B&G, Bud Jones or any of their respective affiliates if it can
be substituted for any product, process or service of the Company, B&G, Bud Jones, or any of their respective affiliates. The foregoing to the contrary notwithstanding, if following termination of
your employment by the Company without Cause,
you desire during the Post-Termination Period to accept employment with a business that engages in any Restricted Activity or otherwise to engage in any Restricted Activity, you 

Page 4 of 6

 

may give the Company prior written notice of such desire, describing the particulars of your prospective employment or activity in detail. The Company in its sole discretion may consent in writing to
your accepting such employment or engaging in such activities. If the Company so consents, (i) you may accept such employment or engage in such activity and (ii) all payments and
benefits being provided to you pursuant to Section 7 shall immediately cease. 

        (d)  While
you are serving as President and Chief Executive Officer of the Company and its Subsidiaries and during the Post-Termination Period, you shall not (and
shall assure that none of your agents or affiliates shall and use your best efforts to assure that none of your associates shall), without the Company's prior written consent, directly or indirectly
solicit for employment, offer employment to, or employ for your or such agent's, affiliate's or associate's own account or for the account of another, any employee or consultant of the Company, B&G,
Bud Jones or any of their respective affiliates. As used in Sections 7(c) and 7(d), the terms "affiliates" and "associates" shall have the meaning set forth in Rule 405 under the Securities Act
of 1933, as amended. 

        (e)  You
expressly agree that, in addition to any other rights or remedies which the Company may have, the Company shall be entitled to injunctive and other equitable relief
to prevent a breach of this Section 7 by you, including a temporary restraining order or temporary injunction from any court of competent jurisdiction restraining any threatened or actual
violation, and you consent to the entry of such an order and injunctive relief and waive the making of a bond or undertaking as a condition for obtaining such relief to the extent permitted by law or
consent to the posting of a bond or undertaking in the minimum amount permitted by applicable law.. 

8.    NOTICES.  

        Any notice required or pertained to be given hereunder shall be in writing and may be given by prepaid and certified return receipt requested first class mail
addressed: 

        (a)  if
to the Company, to the Chairman at the principal office of the Company; 

        (b)  if
to you, at your home mailing address on file with the Company; or 

        (c)  to
either party at such other address as the party to which such notice is to be given shall have notified (in accordance with the provisions of this Section 8)
as its substitute address for the purposes of this Agreement. 

        Any
notice given as aforesaid shall be deemed conclusively to have been received on the fifth business day after such mailing. 

9.    AMENDMENT.  

        It is agreed that no change or modification of this Agreement shall be made except in a writing signed by both parties. 

10.  SEVERABILITY.  

        If in any jurisdiction, any provision of this Agreement or its application to any party or circumstance is restricted, prohibited or unenforceable, such provision
shall, as to such jurisdiction, be ineffective only to the extent of such restriction, prohibition or unenforceability without invalidating the remaining provisions hereof and without affecting the
validity or enforceability of such provision in any other jurisdiction or its application to other parties or circumstances. In addition, if any one or more of the provisions contained in this
Agreement shall for any reason in any jurisdiction be held to be excessively broad as to time, duration, geographic scope, activity or subject, it shall be construed, by limiting and reducing it, so
as to be enforceable to the extent compatible with the application law of such jurisdiction as it shall then appear. 

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11.  LAW GOVERNING.  

        The validity, interpretation and effect of this Agreement shall be governed by the laws of the State of Nevada without regard to any principles of conflict of
laws or choice of law, whether of the State of Nevada or any other jurisdiction which would result in the application of the law of any jurisdiction other than the State of Nevada. 

12.  EXCLUSIVE JURISDICTION.  

        The parties hereby agree that the Nevada State and the U.S. Federal courts sitting in Nevada shall have exclusive jurisdiction to enforce the terms of this
Agreement, and the parties hereby consent to that jurisdiction and agree that they will not proceed in or before any other court, tribunal, or
government agency or official to seek enforcement of any of the terms of this Agreement, except that any judgment entered by a court sitting in Nevada may be enforced by any court of competent
jurisdiction in any state or nation. 

13.  ENTIRE AGREEMENT.  

        This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof, and all prior or contemporaneous agreements of the
parties with respect to the subject matter hereof, and all other prior or contemporaneous agreements of the parties with respect to said subject matter, whether oral or written, are hereby merged into
and superseded by this Agreement. 

        Please
indicate your acceptance of and agreement to the foregoing by signing where indicated on the counterpart of this Agreement provided and returning it to the undersigned. 

	 	 	Sincerely,
	 	 	 	 	 	 	 
	 	 	PAUL-SON GAMING CORPORATION
	 	 	 	 	 	 	 
	 	 	By:	 	

	 	 	 	 	Title:	 	 
	 	 	 	 	 	 	 
	ACCEPTED AND AGREED TO:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
 Gérard Charlier	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Dated: September 12, 2002	 	 	 	 	 	 
	 	 	 	 	 	 	 

Page 6 of 6

QuickLinks

Exhibit 10.1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}]]