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Exhibit 10.19  

 
 

EMPLOYMENT AGREEMENT    
    
    by and between    
    
    SCIENTIFIC GAMES CORPORATION    
    
    and    
    
    MARTIN E. SCHLOSS    
    
    dated as of    
    
    November 1,
 2002    
    

 
 
 

Table of Contents    
    

	 
	 	 
	 	Page

	1.	 	Termination of Existing Employment Agreements	 	1
	2.	 	Employment; Term	 	1
	3.	 	Offices and Duties	 	1
	4.	 	Compensation	 	2
	5.	 	Benefits	 	2
	6.	 	Termination	 	3
	7.	 	Compensation Following Termination Prior to the End of the Term	 	5
	8.	 	Excise Tax Restoration Payment	 	12
	9.	 	Offsets; Withholding	 	12
	10.	 	Noncompetition; Nonsolicitation; Nondisclosure; etc	 	12
	 	 	10.1  Noncompetition; Nonsolicitation	 	12
	 	 	10.2  Proprietary Information	 	14
	 	 	10.3  Confidentiality and Surrender of Records	 	14
	 	 	10.4  Nondisparagement	 	15
	 	 	10.5  No Other Obligations	 	15
	 	 	10.6  Forfeiture of Outstanding Options	 	15
	 	 	10.7  Enforcement	 	15
	 	 	10.8  Cooperation with Regard to Litigation	 	16
	 	 	10.9  Survival	 	16
	 	 	10.10  Company	 	16
	11.	 	Insurance for the Company's Benefit	 	16
	12.	 	Indemnification	 	16
	13.	 	Notices	 	17
	14.	 	Assignability; Binding Effect	 	18
	15.	 	Complete Understanding; Amendment; Waiver	 	18
	16.	 	Severability	 	18
	17.	 	Survivability	 	19
	18.	 	Governing Law; Arbitration; Expenses; Interest	 	19
	 	 	18.1  Governing Law	 	19
	 	 	18.2  Arbitration	 	19
	 	 	18.3  Reimbursement of Expenses in Enforcing Rights	 	19
	 	 	18.4  Interest on Unpaid Amounts	 	19
	19.	 	Reimbursement of Expenses of Executive in Negotiating Agreement	 	20
	20.	 	Titles and Captions	 	20

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EMPLOYMENT AGREEMENT    
    

        This EMPLOYMENT AGREEMENT (this "Agreement") is made as of November 1, 2002 (the "Effective Date"), by and between SCIENTIFIC GAMES CORPORATION, a Delaware
corporation formerly known as Autotote Corporation (the "Company"), and Martin E. Schloss ("Executive"). 

W I T N E S S E T H :  

        WHEREAS, Executive has been employed by the Company pursuant to the resolutions approved by the Board of Directors
of the Company, dated August 30, 2001 and September 7, 2000 (the "Resolutions"), as memorialized in a letter agreement, dated January 11, 2001 (the "Letter Agreement"); and 

        WHEREAS, the Company desires to continue to employ Executive with the Company, and Executive wishes to continue to serve the Company, in
the capacities and on the terms and conditions set forth in this Agreement; and 

        WHEREAS, the Company and Executive desire that this Agreement replace and supersede the Resolution and the Letter Agreement; 

        NOW, THEREFORE, in consideration of the premises and the mutual benefits to be derived herefrom and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 

        1.    Termination of Existing Employment Agreements.    As of the Effective Date, all existing employment agreements
between the parties, whether oral or written, including the Resolutions and the Letter Agreement, are hereby terminated, except as provided in Section 12. 

        2.    Employment; Term.    The Company hereby agrees to employ Executive, and Executive hereby accepts continued
employment with the Company, in accordance with and subject to the terms and conditions set forth herein. The term of employment of Executive under this Agreement (the "Term") shall be the period
commencing on the Effective Date and ending on December 31, 2003, and any period of extension thereof in accordance with this Section 2, subject to earlier termination in accordance with
Section 6. The Term shall be extended automatically without further action by either party by one
additional year (added to the end of the Term) first on December 31, 2003 (extending the Term to December 31, 2004) and then on each succeeding December 31 thereafter, unless
either party shall have given written notice to the other party prior to the September 30 preceding the date upon which such extension would become effective electing not to further extend the
Term, in which case Executive's employment shall terminate on the date upon which such extension would otherwise have become effective, unless earlier terminated in accordance with Section 6;
provided, however, that any termination pursuant to this Section 2 shall be subject to and without limitation of or prejudice to Executive's rights with respect to (i) a termination for
Good Reason pursuant to Section 6(e)(viii), or (ii) a termination without Cause pursuant to Section 6(g), as applicable. 

        3.    Offices and Duties.    

        (a)   During
the Term, Executive shall serve as Vice President and General Counsel of the Company and shall report directly to the Chief Executive Officer of the Company (the
"CEO"). 

        (b)   Executive
shall have such duties and authority consistent with Executive's title as shall be reasonably assigned to Executive from time to time by the CEO or the Board
of Directors, including, without limitation, serving as Secretary of the Company, if so assigned. 

        (c)   Executive
shall devote his full business time and attention and best efforts to his positions with the Company without commitment to other business endeavors, except
that so long as such activities do not preclude or render unlawful Executive's employment by the Company or otherwise materially inhibit the performance of his duties under this Agreement or
materially impair the business of the Company or its subsidiaries, Executive (i) may make personal investments which are not in conflict with his duties to the Company and manage personal and 

 

family
financial and legal affairs, (ii) may continue to serve on any board of directors on which he is known by the Board to be serving on the Effective Date, as specified in Schedule A
hereto, (iii) may undertake public speaking engagements, and (iv) may serve as a director of (or hold a similar position with) any other organization upon approval by the Board of
Directors in writing. 

        4.    Compensation.    

        (a)    Base Salary.    During the Term the Company shall pay Executive a base salary (the "Base Salary") at the
initial rate of $306,870.00 per annum, payable biweekly (except to the extent deferred under a deferred compensation plan) and subject to all withholdings that are legally required or are agreed to by
Executive. The Base Salary shall be increased annually on each January 1 during the Term, beginning on January 1, 2003, by a percentage of the Base Salary then in effect equal to the
percentage increase, if any, during the preceding twelve months in the Consumer Price Index for the Greater New York area. In no event shall the Base Salary be reduced. 

        (b)    Incentive Compensation.    Executive shall have the opportunity annually to earn incentive compensation in
accordance with the applicable plan(s) of the Company as in effect from time to time; provided, however, that Executive may in the discretion of the Company receive additional incentive compensation. 

        (c)    Executive Compensation Plans.    Executive shall be entitled during the Term to participate, without
discrimination or duplication, in the Company's supplemental executive retirement plan and all other executive compensation plans and programs which are made generally available by the Company to its
other senior executives (including, without limitation, any stock option plans, performance share plans, management incentive plans, deferred compensation plans, and supplemental retirement plans) in
accordance with the terms of such plans and programs and subject to the Company's right to at any time amend or terminate any such plan or program. 

        5.    Benefits.    

        (a)   The
Company shall reimburse Executive for all reasonable and necessary travel, business entertainment and other business expenses incurred by Executive in connection
with the performance of his duties under this Agreement, on a timely basis upon submission by Executive of vouchers therefor in accordance with the Company's standard procedures. 

        (b)   Executive
shall be entitled to participate, without discrimination or duplication, in any and all medical insurance, group health, disability, life, accidental death,
dismemberment insurance, pension, retirement, profit sharing, stock ownership and other insurance, benefit, fringe benefits and perquisite plans and programs which are made generally available by the
Company to its other senior executives; provided, however, that Executive shall be eligible to participate in such insurance, benefit, fringe benefit and perquisite plans and programs on terms and
conditions at least as favorable to Executive as the most favorable terms and conditions offered to any other employee of the Company other than the Chief Executive Officer. The Company, in its sole
discretion, may at any time amend or terminate any such plans or programs; provided, however, that: 

          (i)  At
all times during the Term, such plans and programs in effect, in the aggregate, shall provide Executive with benefits and compensation substantially no less
favorable than is provided by the Company to Executive under such plans and programs as of the Effective Date; 

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         (ii)  The
Company shall provide Executive with long-term disability insurance and benefits substantially no less favorable (including any required contributions
by Executive) than such insurance and benefits in effect on the Effective Date; and 

        (iii)  The
Company shall provide Executive with Company-paid group and individual term life insurance providing a death benefit no less than that provided under
Company-paid insurance in effect on the Effective Date. 

        (c)   If
the Company adopts an equity investment program permitting executives to elect to forego salary, annual incentive, other bonuses, annual option opportunities under
long-term incentive plans, or other specified compensation or benefits in exchange for a grant of stock options, restricted stock or other equity or non-equity awards or
benefits, Executive will be eligible to participate in such program. 

        (d)   Executive
shall be entitled to participate in the Company's deferred compensation plan in accordance with the terms of such plan and subject to the Company's right to at
any time amend or terminate any such plan. 

        (e)   Executive
shall be entitled to paid vacation, holidays, and any other time off in accordance with the Company's policies in effect from time to time. 

        (f)    The
Company will use its best efforts to file with the Securities and Exchange Commission and thereafter maintain the effectiveness of one or more registration
statements registering under the Securities Act of 1933, as amended, the offer and sale of shares by the Company to Executive pursuant to stock options or other equity-based awards granted to
Executive under Company plans. 

        (g)   For
purposes of computing the "Retirement Benefit" or equivalent payment or benefit due to Executive under any SERP (as defined in Section 7(a) below) in which
Executive participates during the Term, or any payment or benefit under Section 7 of this Agreement in lieu of any SERP benefit or payment, the "Final Average Compensation" or equivalent
reference compensation amount, in the case of Executive, shall, notwithstanding the terms of such SERP, be the higher of (x) such amount as
otherwise determined pursuant to the terms of the SERP or (y) an amount equal to the sum of (i) Executive's then-current Base Salary immediately prior to termination plus
(ii) such then-current Base Salary multiplied by (A) the sum of the Incentive Compensation Percentages for each of the Reference Years divided by (B) 3; where
(X) "Incentive Compensation Percentage" for a Reference Year means the percentage expressed by dividing the aggregate incentive compensation and bonuses paid to Executive in such Reference Year
by Executive's Base Salary in such Reference Year, and (Y) "Reference Year" means each of the three consecutive calendar years with the highest Incentive Compensation Percentages during the
period of ten calendar years immediately preceding termination. 

        6.    Termination.    Executive's employment hereunder may be terminated prior to the end of the Term under the
following circumstances: 

        (a)    Death; Total Disability.    Executive's employment hereunder shall terminate upon Executive's death, and the
Company may terminate Executive's employment hereunder in the event of Executive's "Total Disability." For purposes of this Agreement, "Total Disability" shall mean Executive's failure to perform the
duties and responsibilities contemplated under this Agreement for a period of more than 180 days during any consecutive 12-month period, due to physical or mental incapacity or
impairment as determined by a physician or physicians selected by the Company and reasonably acceptable to Executive unless, within 30 days after Executive has received written notice from the
Company of a proposed termination due to such failure (as determined in accordance with the foregoing provisions of this sentence) which notice shall include a copy of the findings of such physician
or physicians and shall refer to this Section 6(a), Executive 

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shall
have returned to the full performance of his duties hereunder and shall have presented to the Company a written certificate of Executive's good health by a physician selected by Executive and
reasonably acceptable to the Company. 

        (b)    Retirement.    Executive may terminate his employment hereunder upon retirement at or after age 65 or at or
after age 55 following at least 10 years of full-time employment with the Company ("Normal Retirement") or prior to such age upon approval by the Company ("Approved Early
Retirement"), in each case upon forty-five (45) days' prior written notice to the Company referring to this Section 6(b). 

        (c)    Termination by the Company for Cause.    The Company may terminate Executive's employment hereunder for Cause
at any time upon written notice to Executive referring to this Section 6(c). For purposes of this Agreement, the term "Cause" shall mean Executive's gross misconduct (as defined herein) or
willful and material breach of Section 10.1(a) (other than the first sentence thereof), 10.1(b), 10.2 (other than the first and penultimate sentences thereof), 10.3, 10.4, or 10.8. For purposes
of this definition, "gross misconduct" shall mean (i) Executive's conviction in a court of law of a felony under applicable federal or state law that was committed while Executive was employed
by the Company; (ii) Executive's willful and continued failure or refusal to perform his duties under this Agreement; or
(iii) any act or omission on the part of Executive not requested or approved by the Company constituting willful malfeasance or gross negligence in the performance of Executive's duties under
this Agreement. For purposes of this Agreement, an act or failure to act on Executive's part shall not include any act or failure to act resulting from any physical or mental incapacity or impairment
of Executive. Executive may not be terminated for Cause unless and until there shall have been delivered to him, within ninety (90) days after the Company (A) had actual knowledge of
conduct or an event allegedly constituting Cause and (B) had reason to believe that such conduct or event could be grounds for termination for Cause, a written statement from the Company (after
giving Executive reasonable notice of the specific grounds for such termination and, except if a felony conviction is the grounds for termination, 30 days to correct such grounds, and affording
Executive and his counsel the opportunity to be heard by the Company), concluding that Executive was guilty of conduct constituting Cause (the "Cause Statement"). 

        If,
within 30 days of Executive's receipt of notice of his termination for Cause, Executive in good faith files a claim in an arbitration disputing the termination for Cause,
Executive shall, during the pendency of the arbitration, be considered a suspended employee of the Company and be entitled to receive benefits under Section 5 of this Agreement as if he had not
been terminated. If the arbitration panel finds that the Company did not have Cause to terminate Executive's employment: (x) Executive's employment shall be deemed to have been terminated
without Cause as of the date of notice of his termination for Cause; and (y) any amounts paid to Executive by the Company, including but not limited to the value of all benefits provided to
Executive, shall be credited against amounts owed to Executive under Section 7(c) or 7(d) of this Agreement. 

        If,
within 30 days of Executive's receipt of notice of his termination for Cause, Executive in good faith files a claim in arbitration disputing the termination for Cause,
Executive shall, during the pendency of the arbitration, be considered a suspended employee of the Company and be entitled to receive compensation and benefits under this Agreement as if he had not
been terminated. If the arbitration panel finds that the Company had Cause to terminate Executive's employment, Executive shall, within 5 days of the arbitration award, repay any amounts
provided to him by the Company in respect of periods commencing after his termination, including but not limited to salary continuation and the value of all benefits provided to Executive in respect
of periods commencing after his termination, in excess of any amounts to which he was entitled under this Agreement upon a termination for Cause. If the arbitration panel finds that the Company did
not have Cause to terminate Executive's employment: (x) Executive's employment shall be deemed 

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to
have been terminated without Cause as of the date which is 90 days after the date of notice of his termination for Cause; and (y) any amounts paid to Executive by the Company in
respect of periods commencing after 90 days following the date of the notice of his termination for Cause, including but not limited to salary continuation and the value of all benefits
provided to Executive, shall be credited against amounts owed to Executive under Section 7(c) or 7(d) of this Agreement. 

        (d)    Termination by the Company Without Cause.    The Company may terminate Executive's employment hereunder at any
time, without Cause, for any reason or no reason. 

        (e)    Termination by Executive for Good Reason.    Executive may terminate his employment hereunder for Good Reason.
For purposes of this Agreement, "Good Reason" shall mean: without Executive's prior written consent, (i) a material change, adverse to Executive, in Executive's positions, titles or offices as
set forth in Section 3, or status rank, nature of responsibilities, or authority within the Company, except, in such case, in connection with the termination of Executive's employment for
Cause, Total Disability, Normal Retirement or Approved Early Retirement, or death, (ii) an assignment of any significant duties to Executive which are inconsistent with his positions or offices
held under Section 3, (iii) a decrease in Base Salary or other compensation or in any compensation opportunities or a material decrease in the aggregate benefits provided under this
Agreement, (iv) any other failure by the Company to perform any material obligation under, or breach by the Company of any material provision of, this Agreement, (v) the Company's
election not to further extend the Term under Section 2, (vi) a relocation of the Corporate Offices of the Company more than 35 miles from the latest location of such offices prior to
such relocation, (vii) any failure to secure the agreement of any successor corporation or other entity to the Company to fully assume the Company's obligations under this Agreement in a form
reasonably acceptable to Executive, and (viii) any attempt by the Company to terminate Executive for Cause which does not result in a valid termination for Cause, except where (x) valid
grounds for Cause exist but are corrected as permitted under Section 6(c) or (y) the Company, prior to 35 days after Executive's receipt of a copy of the Cause Statement, revokes
the Cause Statement, takes any and all other steps reasonably necessary to retract its allegations of Cause and fully restore Executive to active employment in accordance with the terms of this
Agreement, effective immediately prior to the issuance of the Cause Statement, and pays (or reimburses Executive for) any costs and expenses reasonably incurred by Executive in connection with such
attempted termination. Executive shall not be considered to have terminated for Good Reason unless Executive shall have provided the Company with written notice of the specific reasons for such
termination within ninety (90) days after he has actual knowledge of the event that is the basis for such termination and (except in the case of a termination pursuant to clause (viii)
of the preceding sentence) affords the Company at least thirty (30) days to cure the alleged conduct. 

        (f)    Termination by Executive for Other than Good Reason.    Executive may terminate his employment hereunder for
any reason or no reason upon thirty (30) days' prior written notice to the Company referring to this Section 6(f); provided, however, that a termination of Executive's employment by
reason of death, Total Disability, Normal or Early Retirement, or Good Reason shall not constitute a termination by Executive for other than Good Reason pursuant to this Section 6(f). 

        7.    Compensation Following Termination Prior to the End of the Term.    In the event that Executive's employment
hereunder is terminated prior to the end of the Term, Executive shall be entitled only to the following compensation and benefits: 

        (a)    Termination by Reason of Death, Normal Retirement, or Approved Early Retirement.    In the event that
Executive's employment is terminated prior to the expiration of the Term by reason of Executive's death, pursuant to Section 6(a), or by reason of his Normal Retirement or Approved Early
Retirement pursuant to Section 6(b), the Company shall pay the following amounts, and 

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make
the following other benefits available, to Executive (or Executive's spouse or estate, as the case may be): 

          (i)  Any
accrued but unpaid Base Salary (as determined pursuant to Section 4(a)) for services rendered to the date of termination; 

         (ii)  All
vested, nonforfeitable amounts owing or accrued at the date of termination under any compensation and benefit plans, programs, and arrangements set forth or
referred to in Sections 4(b), 4(c), and 5 (including any earned and vested payments and benefits under any supplemental executive retirement plan or substantially similar plan and any earned and
vested annual incentive compensation and long term incentive award but excluding any incentive compensation under Section 4(b) for the year of termination) in which Executive theretofore
participated, to be paid in accordance with the terms and conditions of such plans, programs, and arrangements (and agreements and documents thereunder); 

        (iii)  In
lieu of any incentive compensation under Section 4(b) for the year of termination, an amount equal to the amount of annual incentive compensation payable to
Executive assuming achievement of the maximum performance targets for such year, multiplied by a fraction the numerator of which is the number of days Executive was employed in the year of termination
and the denominator of which is the total number of days in the year of termination; 

        (iv)  Stock
options held by Executive at termination, if not then vested and exercisable, will become fully vested and exercisable at the date of such termination, and, in
other respects, all such options shall be governed by the plans and programs and the agreements and other documents pursuant to which such options were granted; 

         (v)  All
deferred stock awards, and all deferral arrangements under any deferred compensation plan, will be settled in accordance with the plans and programs under which the
awards were granted or governing the deferral including, if so permitted by the plans or programs, Executive's duly executed deferral election forms or the terms of any mandatory deferral; 

        (vi)  Reasonable
business expenses and disbursements incurred by Executive prior to such termination will be reimbursed in accordance with Section 5(a); 

       (vii)  Executive
shall be entitled to designate (and change, to the extent permitted under applicable law) a beneficiary or beneficiaries to receive any compensation or
benefits payable hereunder following Executive's death; 

Provided,
however, that Executive will be entitled to the benefit of any terms of plans or agreements applicable to Executive which are more favorable than those specified in this Section 7(a). 

Amounts
payable under (i), (ii), (iii), and (vi) above will be paid as promptly as practicable after termination of Executive's employment; provided, however, that, to the extent that the
Company would not be entitled to deduct any such payments (other than those under (i) above) under Internal Revenue Code Section 162(m), such payments shall be made at the earliest time
that the payments would be deductible by the Company without limitation under Section 162 (m) (unless this provision is waived by the Company). 

        (b)    Termination by the Company for Cause; Termination by Executive for Other than Good Reason.    In the event that
Executive's employment is terminated by the Company for Cause pursuant to Section 6(c) or by Executive for other than Good Reason pursuant to Section 6(f), the 

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Company
shall pay the following amounts, and make the following other benefits available, to Executive: 

          (i)  Any
accrued but unpaid Base Salary (as determined pursuant to Section 4(a)) for services rendered to the date of termination; 

         (ii)  All
vested nonforfeitable amounts owing or accrued at the date of termination under any compensation and benefit plans, programs, and arrangements set forth or referred
to in Sections 4(b), 4(c), and 5 hereof (including any earned and vested payments and benefits under any supplemental executive retirement plan or substantially similar plan and any earned and vested
annual incentive compensation) in which Executive theretofore participated will be paid under the terms and conditions of such plans, programs, and arrangements (and agreements and documents
thereunder); 

        (iii)  Except
as provided in Section 10.6, all stock options and deferred stock awards will be governed by the terms of the plans and programs under which the options
or awards were granted; 

        (iv)  Non-forfeitable
amounts credited to any deferral account of Executive under deferral arrangements referred to in Section 5(d) hereof at the date of
termination will be settled in accordance with the plans and programs under which the awards were granted or governing the deferral including, if so permitted by the plans or programs, Executive's
duly executed deferral election forms or the terms of any mandatory deferral; and 

         (v)  Reasonable
business expenses and disbursements incurred by Executive prior to such termination will be reimbursed, in accordance with Section 5(a). 

Amounts
payable under (i), (ii), and (v) above will be paid as promptly as practicable after termination of Executive's employment; provided, however, that, to the extent that the Company would
not be entitled to deduct any such payments under Internal Revenue Code Section 162(m), such payments shall be made at the earliest time that the payments would be deductible by the Company
without limitation under Section 162(m) (unless this provision is waived by the Company). 

        (c)    Termination by Reason of Total Disability; Termination by the Company Without Cause or by Executive For Good Reason Not at the Time of, Within
Two Years After, or in Anticipation of a Change in Control.    In the event that Executive's employment is terminated by reason of Total Disability pursuant to
Section 6(a), or by the Company without Cause pursuant to Section 6(d) before a Change in Control (and not in "anticipation of a Change in Control," as defined below) or more than two
years after a Change in Control, or by Executive for Good Reason pursuant to Section 6(e) before a Change in Control (and not in "anticipation of a Change in Control," as defined below) or more
than two years after a Change in Control, the Company shall pay the following amounts, and make the following other benefits available, to Executive: 

          (i)  A
lump sum cash payment in an amount equal (except as provided in clause (viii) of Section 6(e)) to the sum of (x) Executive's
then-current Base Salary at the rate payable in accordance with Section 4(a) hereof, at the date of termination plus (y) the Severance Annual Incentive Amount (as defined
below), will be paid to Executive; provided, however, that Executive may elect to receive the amount payable under this Section 7(c)(i) in equal monthly installments over the
12 months following termination, without interest, in lieu of receiving a lump sum cash payment. For purposes of this Agreement, the "Severance Annual Incentive Amount" shall be the greater of
(1) the average annual incentive compensation paid to Executive for the three years immediately preceding the year of termination or (2) the annual incentive compensation payable to
Executive upon achievement of the maximum performance targets for the year of termination; 

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         (ii)  The
unpaid portion of Base Salary at the rate payable, in accordance with Section 4(a) hereof, at the date of termination, pro rated through such date of
termination, will be paid; 

        (iii)  All
vested, nonforfeitable amounts owing or accrued at the date of termination under any compensation and benefit plans, programs, and arrangements set forth or
referred to in Sections 4(b) and 5(a) and 5(c) hereof (including any earned and vested payments and benefits under any supplemental executive retirement plan or substantially similar plan and any
earned and vested annual incentive compensation) in which Executive theretofore participated will be paid under the terms and conditions of such plans, programs, and arrangements (and agreements and
documents thereunder); 

        (iv)  Stock
options held by Executive at termination, if not then vested and exercisable, will become fully vested and exercisable at the date of such termination, and, in
other respects, all such options shall be governed by the plans and programs and the agreements and other documents pursuant to which such options were granted; 

         (v)  Deferred
stock held by Executive at termination will become fully vested and non-forfeitable, and shall be settled upon such termination, without regard to
any stated period of deferral otherwise remaining in respect of such amounts; 

        (vi)  Executive
shall be entitled to receive an amount equal to the amount accrued under any deferred compensation plan or agreement in effect at the date of termination in
which Executive is a participant or party, less required withholding taxes under Section 9, as promptly as practicable following such date of termination; the amount paid under this
Section 7(c)(vi) shall be equal to Executive's account balance on the date of the termination of Executive's employment if the deferred compensation amount is in the form of an account
balance or, if the deferred compensation amount is not in the form of an account balance, the present value of the deferred compensation on the date of the termination of Executive's employment,
calculated using a discount rate (the "Discount Rate") equal to the yield, at the time of determination, for U.S. Treasury securities having a maturity of thirty years; if Executive elects to receive
payment under this Section 7(c)(vi), Executive shall forfeit all rights under any such deferred compensation plan or agreement, and such deferred compensation plan or agreement shall have no
force and effect with respect to Executive; 

       (vii)  Reasonable
business expenses and disbursements incurred by Executive prior to such termination will be reimbursed, in accordance with Section 5(a); 

      (viii)  For
(A) a period of 3 years after such termination other than due to Total Disability or (B) the period from termination due to Total Disability
until Executive attains age 65, Executive shall continue to participate in all employee and executive benefit plans, programs, and arrangements under Section 5 providing health, medical,
disability and life insurance benefits in which Executive was participating immediately prior to termination, the terms of which allow Executive's continued participation, as if Executive had
continued in employment with the Company during such period or, if such plans, programs, or arrangements do not allow Executive's continued participation, Executive shall receive a cash payment
equivalent on an after-tax basis to the value of the additional benefits Executive would have received under such plans, programs, and arrangements in which Executive was participating
immediately prior to termination, as if Executive had received credit under such plans, programs, and arrangements for service and age with the Company during such period following Executive's
termination as provided in clause (A) or (B) above (as applicable), with such benefits payable by the Company at the same times and in the same manner as such benefits would have been
received by Executive under such plans (it being understood that the value of any insurance-provided benefits will be based on the premium cost to Executive, 

8

 

which
shall not exceed the highest risk premium charged by a carrier having an investment grade or better credit rating); 

        (ix)  In
lieu of any payments and benefits under any SERP in which Executive participated during the Term, Executive shall be entitled to receive the greater of:
(y) all payments and benefits to which Executive otherwise would have been entitled under the SERP (computed in accordance with Section 5(g) hereof); and (z) all payments and
benefits to which Executive otherwise would have been entitled under the SERP (computed in accordance with Section 5(g) hereof) if Executive's years of Service (as defined in the SERP) were
increased by five years. Such payments and benefits shall be payable in a lump sum or in equal installments, as determined by Executive in his discretion, in accordance with the terms and conditions
of the SERP; provided, however, that Executive shall not be entitled to receive payments in installments unless at least 12 months prior to the date of the termination of his employment, he
elected to receive payments in installment form under the SERP; if Executive receives such payment(s) under this Section 7(c)(ix), Executive shall forfeit all rights under the SERP, and the
SERP shall have no force and effect with respect to Executive; 

Provided,
however, that Executive will be entitled to the benefit of any terms of plans or agreements applicable to Executive which are more favorable than those specified in this Section 7(c).
Except as otherwise expressly provided above, amounts payable under this Section 7(c), will be paid as promptly as practicable after termination of Executive's employment, and in no event more
than 30 days after such termination. 

Notwithstanding
the foregoing, if a reduction in Base Salary or other level of compensation or benefit was a basis for Executive's termination for Good Reason, the Base Salary or other level of
compensation in effect before such reduction shall be used to calculate payments or benefits under this Section 7(c). 

        For
purposes of this Agreement, a "Change in Control" shall be deemed to have occurred if: 

	(i)
	Any
"person" as defined in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and as used in sections 13(d) and 14(d)
thereof, including a "group" as defined in Section 13 (d) of the Exchange Act but excluding the Company and any subsidiary and any employee benefit plan sponsored or maintained by the
Company or any subsidiary (including any trustee of such plan acting as trustee), directly or indirectly, becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange
Act) of securities of the Company representing at least 40% of the combined voting power of the Company's then-outstanding securities;

	(ii)
	The
stockholders of the Company approve a merger, consolidation, recapitalization, or reorganization of the Company, or a reverse stock split of any class of voting
securities of the Company, or the consummation of any such transaction if stockholder approval is not obtained, other than any such transaction which would result in at least 60% of the total voting
power represented by the voting securities of the Company or the surviving entity outstanding immediately after such transaction being beneficially owned by persons who together beneficially owned at
least 80% of the combined voting power of the voting securities of the Company outstanding immediately prior to such transaction; provided that, for purposes of this paragraph (ii), such
continuity of ownership (and preservation of relative voting power) shall be deemed to be satisfied if the failure to meet such 60% threshold is due solely to the acquisition of voting securities by
an employee benefit plan of the Company or such surviving entity or of any subsidiary of the Company or such surviving entity; 

9

 

	(iii)
	The
stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or
substantially all of its assets (or any transaction having a similar effect); or

	(iv)
	During
any period of two consecutive years, individuals who at the beginning of such period constitute the Board, together with any new director (other than a director
designated by a person who has entered into an agreement with the Company to effect a transaction described in paragraph (i), (ii), or (iii) hereof) whose election by the Board or
nomination for election by the Company's stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at
the beginning of the period or whose election or nomination for election was previously so approved (the "Continuing Directors"), cease for any reason to constitute at least a majority of the Board. 

For
purposes of this Agreement, a termination by the Company without Cause in "anticipation of a Change in Control" shall mean a termination of Executive's employment by the Company without Cause
after a Threatened Change in Control if a Change in Control actually occurs (i) within two years after such termination, unless relevant facts and circumstances clearly demonstrate that the
possibility of a Change in Control would occur was remote as of the date of such termination, or (ii) within six months after such termination. 

For
purposes of this Agreement, the term "Threatened Change in Control" shall mean (x) the issuance of a proxy statement by the Company with respect to an election of directors for which there
is proposed one or more directors who are not recommended by the Board of Directors of the Company or its nominating committee, where the election of such proposed director or directors would result
in a Change in Control; or (y) the announcement by any person of an intention to take actions which might reasonably result in a Change in Control. 

        (d)    Termination by the Company Without Cause or by Executive For Good Reason at the Time of or Within Two Years After a Change in Control or in
Anticipation of a Change in Control.    In the event that Executive's employment is terminated at the time of or within two years after a Change in Control, or in
"anticipation of a Change in Control" as defined above, by the Company without Cause pursuant to Section 6(d) or by Executive for Good Reason pursuant to Section 6(e) the Company shall
pay the following amounts, and make the following other benefits available, to Executive: 

          (i)  A
lump sum cash payment in an amount equal to three times the sum of (x) Executive's then-current Base Salary at the rate payable in accordance with
Section 4(a) hereof, at the date of termination plus (y) the Severance Annual Incentive Amount (as defined in Section 7(c)(i)), will be paid to Executive; provided, however, that
Executive may elect to receive the amount payable under this Section 7(d)(i) in equal monthly installments over the 36 months following termination, without interest, in lieu of
receiving a lump sum cash payment. 

         (ii)  The
unpaid portion of Base Salary at the rate payable, in accordance with Section 4(a) hereof, at the date of termination, pro rated through such date of
termination, will be paid; 

        (iii)  All
vested, nonforfeitable amounts owing or accrued at the date of termination under any compensation and benefit plans, programs, and arrangements set forth or
referred to in Sections 4(b) and 5(a) and 5(c) hereof (including any earned and vested payments and benefits under any supplemental executive retirement plan or substantially similar plan and any
earned and vested annual incentive compensation) in which Executive theretofore participated will be paid under the terms and conditions of such plans, programs, and arrangements (and agreements and
documents thereunder); 

10

  

	(iv)
	In
lieu of any annual incentive compensation under Section 4(b) for the year in which Executive's employment terminated (unless otherwise payable under
(iii) above), Executive will be paid an amount equal to (X) the Severance Annual Incentive Amount as defined in Section 7(c)(i), multiplied by (Y) a fraction the numerator
of which is the number of days Executive was employed in the year of termination and the denominator of which is the total number of days in the year of termination;

	(v)
	Stock
options held by Executive at termination, if not then vested and exercisable, will become fully vested and exercisable at the date of such termination, and, in
other respects, all such options shall be governed by the plans and programs and the agreements and other documents pursuant to which such options were granted;

	(vi)
	Deferred
stock held by Executive at termination will become fully vested and non-forfeitable, and shall be settled upon such termination, without regard to
any stated period of deferral otherwise remaining in respect of such amounts;

	(vii)
	Executive
shall be entitled to receive an amount equal to the amount accrued under any deferred compensation plan or agreement in effect at the date of termination in
which Executive is a participant or party, less required withholding taxes under Section 9, as promptly as practicable following such date of termination; the amount paid under this
Section 7(d)(vi) shall be equal to Executive's account balance on the date of the termination of Executive's employment if the deferred compensation amount is in the form of an account
balance or, if the deferred compensation amount is not in the form of an account balance, the present value of the deferred compensation on the date of the termination of Executive's employment,
calculated using a discount rate (the "Discount Rate") equal to the yield, at the time of determination, for U.S. Treasury securities having a maturity of thirty years; if Executive elects to receive
payment under this Section 7(d)(vi), Executive shall forfeit all rights under any such deferred compensation plan or agreement, and such deferred compensation plan or agreement shall have no
force and effect with respect to Executive;

	(viii)
	Reasonable
business expenses and disbursements incurred by Executive prior to such termination will be reimbursed, in accordance with Section 5(a);

	(ix)
	In
lieu of any payments and benefits under any SERP in which Executive participated during the Term, Executive shall be entitled to receive the greater of:
(y) all payments and benefits to which Executive otherwise would have been entitled under the SERP (computed in accordance with Section 5(h) hereof); and (z) all payments and
benefits to which Executive otherwise would have been entitled under the SERP (computed in accordance with Section 5(g) hereof) if Executive's years of Service (as defined in the SERP) were
increased by five years. Such payments and benefits shall be payable in a lump sum or in equal installments, as determined by Executive in his discretion, in accordance with the terms and conditions
of the SERP; provided, however, that Executive shall not be entitled to receive payments in installments unless at least 12 months prior to the date of the termination of his employment, he
elected to receive payments in installment form under the SERP; if Executive receives such payment(s) under this Section 7(c)(x), Executive shall forfeit all rights under the SERP, and the SERP
shall have no force and effect with respect to Executive; 

Provided,
however, that Executive will be entitled to the benefit of any terms of plans or agreements applicable to Executive which are more favorable than those specified in this Section 7(d).
Except as otherwise expressly provided above, amounts payable under this Section 7(d), will be paid as promptly as practicable after termination of Executive's employment, and in no event more
than 30 days after such termination. 

11

 

        (e)    No Obligation to Mitigate.    Executive shall not be required to seek other employment or otherwise to mitigate
Executive's damages upon any termination of employment; provided, however, that, to the extent Executive receives from a subsequent employer health or other insurance benefits substantially similar to
the benefits referred to in Section 5, any such benefits to be provided by the Company to Executive following the Term shall be correspondingly reduced. 

        (f)    No Other Benefits or Compensation.    Except as may be provided under this Agreement, under any other written
agreement between Executive and the Company, or under the terms of any plan or policy applicable to Executive, Executive shall have no right to receive any other compensation from the Company, or to
participate in any other plan, arrangement or benefit provided by the Company, with respect to any future period after such termination or resignation. 

        (g)    Release of Employment Claims.    Executive agrees, as a condition to receipt of any termination payments and
benefits provided for in Section 7 (other than compensation and benefits earned through the date of termination), that he will execute a general release agreement, in a form reasonably
satisfactory to the Company, releasing any and all claims arising out of Executive's employment (other than enforcement of this Agreement) 

        8.    Excise Tax Restoration Payment.    Notwithstanding anything to the contrary in this Agreement, in the event that
any payment or distribution of any type to or for the benefit of Executive made by the Company, by any of its affiliates, by any person who acquires ownership or effective control or ownership of a
substantial portion of the Company's assets (within the meaning of section 280G of the Internal Revenue Code of 1986, as amended, and the regulations thereunder (the "Code")) or by any
affiliate of such person, whether paid or payable or distributed or distributable pursuant to the terms of an employment agreement or otherwise (the "Total Payments"), would be subject to the excise
tax imposed by section 4999 of the Code or any interest or penalties with respect to such excise tax (such excise tax, together with any such interest or penalties, are collectively referred to
as the "Excise Tax"), then Executive shall be entitled to receive an additional payment (an "Excise Tax Restoration Payment") in an amount that shall fund the payment by Executive of any Excise Tax on
the Total Payments as well as all income taxes imposed on the Excise Tax Restoration Payment, any Excise Tax imposed on the Excise Tax Restoration Payment and any interest or penalties imposed with
respect to taxes on the Excise Tax Restoration or any Excise Tax. 

        9.    Offsets; Withholding.    Amounts required to be paid by the Company to Executive pursuant to this Agreement
shall not be subject to offset except for any amounts that are owed to the Company by Executive due to his receipt of funds as a result of his fraudulent activity. The foregoing and other provisions
of this Agreement notwithstanding (but without limiting the terms of Section 8), all payments to be made to Executive under this Agreement, including under Section 7, or otherwise by the
Company will be subject to required withholding taxes and other legally required deductions. 

        10.    Noncompetition; Nonsolicitation; Nondisclosure; etc.    

        10.1    Noncompetition; Nonsolicitation.    

        (a)   Executive
acknowledges the highly competitive nature of the Company's business and that access to the Company's confidential records and proprietary information renders
him special and unique within the Company's industry. In consideration of the amounts that may hereafter be paid to Executive pursuant to this Agreement (including, without limitation, Sections 4 and
7), Executive agrees that during the Term (and any extensions thereof) and during the Covered Time (as defined in Section 10.1(e)), Executive, alone or with others, will not, directly or
indirectly, engage (as owner, investor, partner, stockholder, employer, employee, consultant, advisor, director or otherwise) in any business in which he has been directly engaged on behalf of the
Company, or which he has supervised as an executive thereof, during the last two years prior to such termination, or was engaged in by the 

12

 

Company
with Executive's actual knowledge or planned by the Company with Executive's actual knowledge at the time of such termination, in any geographic area in which such business was conducted or
planned to be conducted (a "Competing Business"); provided, however, that this Section 10.1(a) shall not restrict Executive from engaging in (and the term "Competing Business" shall not
include) any business in which the Company no longer engages or plans to engage; provided further that this Section 10.1(a) shall not apply if Executive terminates his employment for Good
Reason pursuant to Section 6(e) or if Executive's employment is terminated by the Company without Cause before a Change in Control or more than two years after a Change in Control (and not in
"anticipation of a Change in Control"); and provided further that activities of the Company, or activities engaged in by Executive for or on behalf of the Company, are not restricted by this
Section 10.1(a) and shall not constitute a "Competing Business." Ownership of (i) the securities of any entity for which a Competing Business represents less than 10% of net sales or net
income (as determined in accordance with generally accepted accounting principles) for the most recent fiscal year (or if such entity has not completed a fiscal year, net sales or net income projected
for its first fiscal year) or (ii) not more than two percent of the equity securities of any company having securities listed on an exchange or regularly traded in the
over-the-counter market shall not, of itself, be deemed inconsistent with this Section 10.1(a). Nothing herein shall require Executive to sell or otherwise dispose of
any securities of any entity if the acquisition of such securities did not violate the terms of this Section 10.1(a) at the time of such acquisition. 

        (b)   In
further consideration of the amounts that may hereafter be paid to Executive pursuant to this Agreement (including, without limitation, Sections 4, 5, and 7),
Executive agrees that during the Term (including any extensions thereof) and during the Covered Time he shall not, directly or indirectly, (i) solicit or attempt to induce any of the employees,
agents, consultants or representatives of the Company to terminate his, her, or its relationship with the Company; (ii) solicit or attempt to induce any of the employees, agents, consultants or
representatives of the Company to become employees, agents, consultants or representatives of any other person or entity; (iii) solicit or attempt to induce any customer, vendor or distributor
of the Company to curtail or cancel any business with the Company; or (iv) hire any person who, to Executive's actual knowledge, is, or was within 180 days prior to such hiring, an
employee of the Company. 

        (c)   During
the Term (including any extensions thereof) and during the Covered Time, Executive agrees that upon the earlier of Executive's (i) negotiating with any
Competitor (as defined below) concerning the possible employment of Executive by the Competitor, (ii) responding to (other than for the purpose of declining) an offer of employment from a
Competitor, or (iii) becoming employed by a Competitor,
(x) Executive will provide copies of Section 10 of this Agreement to the Competitor, and (y) in the case of any circumstance described in (i) or (ii) above occurring
during the Covered Time, and in the case of any circumstance described in (iii) above occurring during the Term or during the Covered Time, Executive will promptly provide notice to the Company
of such circumstances. Executive further agrees that the Company may provide notice to a Competitor of Executive's obligations under this Agreement. For purposes of this Agreement, "Competitor" shall
mean any entity (other than the Company) that engages, directly or indirectly, in the United States in any Competing Business. 

        (d)   Executive
understands that the restrictions in this Section 10.1 may limit his ability to earn a livelihood in a business similar to the business of the Company
but nevertheless agrees and acknowledges that the consideration provided under this Agreement (including, without limitation, Sections 4, 5, and 7) is sufficient to justify such restrictions.
In consideration 

13

 

thereof
and in light of Executive's education, skills and abilities, Executive agrees that he will not assert in any forum that such restrictions prevent him from earning a living or otherwise should
be held void or unenforceable. 

        (e)   For
purposes of this Section 10.1, "Covered Time" shall mean the period beginning on the date of termination of Executive's employment (the "Date of Termination")
and ending twenty-four months after the Date of Termination; provided, however, that if Executive terminates his employment for Good Reason pursuant to clause (viii) of
Section 6(e), "Covered Time" shall mean for purposes of Section 10.1(a) the period beginning on the Date of Termination and ending six months after the Date of Termination. 

        10.2    Proprietary Information.    Executive acknowledges that during the course of his employment with the Company
he will necessarily have access to and make use of proprietary information and confidential records of the Company. Executive covenants that he shall not during the Term or at any time thereafter,
directly or indirectly, use for his own purpose or for the benefit of any person or entity other than the Company, nor otherwise disclose to any individual or entity, any such proprietary information,
unless such disclosure has been authorized in writing by the Company or is otherwise required by law. The term "proprietary information" means: (a) the software products, programs,
applications, and processes utilized by the Company; (b) the name and/or address of any customer or vendor of the Company or any information concerning the transactions or relations of any
customer or vendor of the Company with the Company; (c) any information concerning any product, technology, or procedure employed by the Company but not generally known to its customers or
vendors or competitors, or under development by or being tested by the Company but not at the time offered generally to customers or vendors; (d) any information relating to the Company's
computer software, computer systems, pricing or marketing methods, sales margins, cost of goods, cost of material, capital structure, operating results, borrowing arrangements or business plans;
(e) any information identified as confidential or proprietary in any line of business engaged in by the Company; (f) any information that, to Executive's actual knowledge, the Company
ordinarily maintains as confidential or proprietary; (g) any business plans, budgets, advertising or marketing plans; (h) any information contained in any of the Company's written or
oral policies and procedures or manuals; (i) any information belonging to customers, vendors or any other person or entity which the Company, to Executive's actual knowledge,
has agreed to hold in confidence; (j) any inventions, innovations or improvements covered by this Agreement; and (k) all written, graphic, electronic data and other material containing
any of the foregoing. Executive acknowledges that information that is not novel or copyrighted or patented may nonetheless be proprietary information. The term "proprietary information" shall not
include information generally known or available to the public or generally known or available to the industry or information that becomes available to Executive on a non-confidential
basis from a source other than the Company or its directors, officers, employees, or agents (without breach of any obligation of confidentiality of which Executive has actual knowledge at the time of
the relevant disclosure by Executive.) 

        10.3    Confidentiality and Surrender of Records.    Executive shall not during the Term or at any time thereafter
(irrespective of the circumstances under which Executive's employment by the Company terminates), except as required by law, directly or indirectly publish, make known or in any fashion disclose any
confidential records to, or permit any inspection or copying of confidential records by, any individual or entity other than in the course of such individual's or entity's employment or retention by
the Company, nor shall he retain, and will deliver promptly to the Company, any of the same following termination of his employment hereunder for any reason or upon request by the Company. For
purposes hereof, "confidential records" means those portions of correspondence, memoranda, files, manuals, books, lists, financial, operating or marketing records, magnetic tape, or electronic or
other media or equipment of any kind in Executive's 

14

 

possession
or under his control or accessible to him which contain any proprietary information. All confidential records shall be and remain the sole property of the Company during the Term and
thereafter. 

        10.4    Nondisparagement.    Executive shall not, during the Term and thereafter, disparage in any material respect
the Company, any affiliate of the Company, any of their respective businesses, any of their respective officers, directors or employees, or the reputation of any of the foregoing persons or entities.
Notwithstanding the foregoing, nothing in this Agreement shall preclude Executive from making truthful statements that are required by applicable law, regulation or legal process or are reasonably
required to describe the conduct, decisions, or policies of the Company or any of its affiliates, or their respective businesses, officers, directors or employees. 

        10.5    No Other Obligations.    Executive represents that he is not precluded or limited in his ability to undertake
or perform the duties described herein by any contract, agreement or restrictive covenant. Executive covenants that he shall not employ the trade secrets or proprietary information of any other person
in connection with his employment by the Company without such person's authorization. 

        10.6    Forfeiture of Outstanding Options.    The provisions of Section 7 notwithstanding, if Executive
willfully and materially fails to comply with any restrictive covenant under Section 10.1(a) (other than the first sentence thereof), 10.1(b), 10.2 (other than the first and penultimate
sentences thereof), 10.3, 10.4, or 10.8, all options to purchase Common Stock granted by the Company and then held by Executive or a
transferee of Executive shall be immediately forfeited and thereupon such options shall be cancelled. Notwithstanding the foregoing, Executive shall not forfeit any option (i) unless there
shall have been delivered to him, within ninety (90) days after the Board (A) had knowledge of conduct or an event allegedly constituting grounds for such forfeiture and (B) had
reason to believe that such conduct or event could be grounds for such forfeiture, a written statement from the Company (after giving Executive reasonable notice specifying the nature of the grounds
for such forfeiture and not less than 30 days to correct such grounds and affording Executive and his counsel the opportunity to be heard by the Company), concluding that, in the good faith
opinion of the Company, Executive has engaged and continues to engage in conduct set forth in this Section 10.6 which constitutes grounds for forfeiture of Executive's options; and
(ii) if, within 30 days following his receipt of such written statement, Executive commences an arbitration proceeding in accordance with Section 18.2 disputing such grounds, in
which case such forfeiture shall be tolled pending the resolution of Executive's claim and shall not occur if the arbitration panel finds that the Company is not entitled to cause the forfeiture. 

        If
the arbitration panel finds that the Company is entitled to cause the forfeiture of Executive's options, Executive shall be required to forfeit such options immediately. If any option
is exercised after delivery of the Board's notice of forfeiture and if such forfeiture subsequently occurs pursuant to the foregoing terms of this Section 10.6, Executive shall be required to
return to the Company all shares acquired upon such exercise; provided further that if Executive has sold any shares he acquired upon such exercise, Executive shall pay to the Company an amount equal
to the difference between the aggregate sale price of the shares sold and the aggregate exercise price paid by Executive for such shares. Any such forfeiture shall apply to such options
notwithstanding any term or provision of any option agreement. If the Board or the arbitration panel finds that the Company is not entitled to cause a forfeiture for which a notice is given to
Executive, the Company shall pay (or reimburse, if already paid by Executive) all expenses actually incurred by Executive in connection with such attempted forfeiture. 

        10.7    Enforcement.    Executive acknowledges and agrees that, by virtue of his position, services and access to and
use of confidential records and proprietary information, any violation by 

15

 

him
of any of the undertakings contained in this Section 10 would cause the Company immediate, substantial and irreparable injury for which it has no adequate remedy at law. Accordingly,
Executive agrees and consents to the entry of an injunction or other equitable relief by a court of competent jurisdiction restraining any violation or threatened violation of any undertaking
contained in this Section 10. The Company agrees and consents to the entry of an injunction or other equitable relief by a court of competent jurisdiction restraining the Company from making
any defamatory statements, whether orally or in writing, relating to alleged violations or threatened violations by Executive of any undertaking contained in this Section 10. Executive and the
Company each waive posting of any bond otherwise necessary to secure such injunction or other equitable relief. Rights and remedies provided for in this Section 10 are cumulative and shall be
in addition to rights and remedies otherwise available to the parties hereunder or under any other agreement or applicable law. Subject to Section 18.3, the Company shall bear all costs and
expenses arising in connection with any enforcement pursuant to this Section 10.7. 

        10.8    Cooperation with Regard to Litigation.    Except to the extent that Executive has or intends to assert in good
faith an interest or position adverse to or inconsistent with the interest or position of the Company, Executive agrees to cooperate reasonably with the Company, during the Term and thereafter
(including following Executive's termination of employment for any reason), by making himself available to testify on behalf of the Company in any action, suit, or proceeding, whether civil, criminal,
administrative, or investigative, and to assist the Company in any such action, suit, or proceeding, by providing information and meeting and consulting with the Board or its representatives or
counsel, or representatives or counsel to the Company, in each case, as reasonably requested by the Company. The Company agrees to pay (or reimburse, if already paid by Executive) all expenses
actually incurred in connection with Executive's cooperation and assistance including, without limitation, reasonable fees and disbursements of counsel, if any, chosen by Executive if Executive
reasonably determines in good faith, on the advice of counsel, that it is appropriate that Executive be separately represented by his own counsel in such proceeding. 

        10.9    Survival.    The provisions of this Section 10 shall survive the termination of the Term and any
termination or expiration of this Agreement. 

        10.10    Company.    For purposes of this Section 10, references to the "Company" shall include both the
Company and each subsidiary of the Company. 

        11.    Insurance for the Company's Benefit.    The Company may at any time and for the Company's own benefit (or for
the benefit of a lender to the Company) apply for and take out life, health, accident or other insurance covering Executive, either independently or together with others, in any amount which the
Company may deem to be in its best interests. The Company shall own all rights in such insurance and proceeds thereof and Executive shall not have any right, title or interest therein. Executive shall
assist the Company at the Company's expense in obtaining and maintaining any such insurance by submitting to reasonable and customary medical examinations and preparing, signing and delivering such
applications and other documents as reasonably may be required. 

        12.    Indemnification.    During the Term of this Agreement and all periods after the expiration of this Agreement or
termination of Executive's employment for any reason, the Company shall indemnify Executive to the full extent permitted under the Company's Certificate of Incorporation or By-Laws and
pursuant to any other agreements or policies in effect from time to time; provided, however, that Executive shall at all times have at least all rights to indemnification by the Company as are
provided in the Company's Certificate of Incorporation or By-Laws or pursuant to other agreements in effect on or immediately prior to the Effective Date, and the Company shall also
advance expenses for which indemnification may be ultimately claimed as such expenses are incurred to the fullest extent permitted under applicable law, subject to any requirement that Executive
provide an undertaking to repay such 

16

 

advances
if it is ultimately determined that Executive is not entitled to indemnification; provided, however, that any determination required to be made with respect to whether Executive's conduct
complies with the standards required to be met as a condition of indemnification or advancement of expenses under applicable law and the Company's Certificate of Incorporation, By-Laws, or
other agreement, shall be made by independent counsel mutually acceptable to Executive and the Company (except to the extent otherwise required by law). After the Effective Date, the Company shall not
amend its Certificate of Incorporation or By-Laws or any agreement in any manner which adversely affects the rights of Executive to indemnification thereunder. Any provision contained
herein notwithstanding, this Agreement shall not limit or reduce, and the Company hereby agrees to provide to Executive, any and all rights to indemnification to the full extent permitted under
applicable law. In addition, the Company will maintain directors' and officers' liability insurance in effect and covering acts and omissions of Executive during the Term and for a period of six years
thereafter on terms substantially no less favorable than those in effect on the Effective Date. For purposes of this Section 12, references to the "Company" shall include both the Company and
each of its subsidiaries for which Executive has acted, acts or will in the future act in any capacity. The provisions of this Section 12 shall survive the termination of the Term and any
termination or expiration of this Agreement. 

        13.    Notices.    Whenever under this Agreement it becomes necessary to give notice, such notice shall be in writing,
signed by the party or parties giving or making the same, and shall be served on the person or persons for whom it is intended or who should be advised or notified, by Federal Express or other similar
overnight service or by certified or registered mail, return receipt requested, postage prepaid and addressed to such party at the address set forth below or at such other address as may be designated
by such party by like notice: 

	To the Company:	 
	 	Scientific Games Corporation

750 Lexington Avenue

25th Floor

New York, New York 10022

Attention: Chief Executive Officer
	

With a copy to:	

 
	 	Kramer Levin Naftalis & Frankel LLP

919 Third Avenue

New York, NY 10022

(212) 715-9100

Attention: Peter G. Smith, Esq.
	

To Executive:	

 
	 	Martin E. Schloss, Esq.

869 President Street

Brooklyn, New York 11215
	

With a copy to:	

 
	 	Madelyn D. Schloss

869 President Street

Brooklyn, New York 11215

If
the parties by mutual written agreement supply each other with telecopier numbers for the purposes of providing notice by facsimile, such notice shall also be proper notice under this Agreement and
shall be deemed given on the next business day after the date on which successful and complete transmission is confirmed by the receiving facsimile machine or otherwise confirmed in writing on behalf
of the 

17

 

recipient.
In the case of Federal Express or other similar overnight service, such notice or advice shall be effective on the next business day after it is sent, and, in the cases of certified or
registered mail, shall be effective 5 days after deposit into the mails by delivery to the U.S. Postal Service. 

        14.    Assignability; Binding Effect.    Neither this Agreement nor the rights or obligations hereunder of the parties
hereto shall be transferable or assignable by Executive, except in accordance with the laws of descent and distribution and as specified below. The Company may assign this Agreement and the Company's
rights and obligations hereunder, and shall assign this Agreement and such rights and obligations, to any Successor (as hereinafter defined) which, by operation of law or otherwise, continues to carry
on substantially the business of the Company prior to the event of succession, and the Company shall, as a condition of the succession, require such Successor to agree in writing to assume the
Company's obligations and be bound by this Agreement. For purposes of this Agreement, "Successor" shall mean any person that succeeds to, or has the practical ability to control, the Company's
business directly or indirectly, by merger or consolidation, by purchase or ownership of voting securities of the Company or all or substantially all of its assets, or otherwise. The Company may also
assign this Agreement and the Company's rights and obligations hereunder to any affiliate of the Company, provided that upon any such assignment the Company shall remain liable for the obligations to
Executive hereunder. This Agreement shall be binding upon and inure to the benefit of Executive, his heirs, executors, administrators, and beneficiaries, and shall be binding upon and inure to the
benefit of the Company and its successors and assigns. 

        15.    Complete Understanding; Amendment; Waiver.    This Agreement constitutes the complete understanding between the
parties with respect to the employment of Executive and supersedes all other prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof
(including the Letter Agreement), except as provided in Section 12, and no statement, representation, warranty or covenant has been made by either party with respect thereto except as expressly
set forth herein. This Agreement shall not be modified, amended or terminated except by a written instrument signed by each of the parties. Any waiver of any term or provision hereof, or of the
application of any such term or provision to any circumstances, shall be in writing signed by the party charged with giving such waiver. Waiver by either party of any breach hereunder by the other
party shall not operate as a waiver of any other breach, whether similar to or different from the breach waived. No delay by either party in the exercise of any rights or remedies shall operate as a
waiver thereof, and no single or partial exercise by either party of any such right or remedy shall preclude other or further exercise thereof. 

        16.    Severability.    If any provision of this Agreement or the application of any such provision to any person or
circumstances shall be determined by any court of competent jurisdiction to be invalid or unenforceable to any extent, the remainder of this Agreement, or the application of such provision to such
person or circumstances other than those to which it is so determined to be invalid or unenforceable, shall not be affected thereby, and each provision hereof shall be enforced to the fullest extent
permitted by law. If any provision of this Agreement, or any part thereof, is held to be invalid or unenforceable because of the scope or duration of or the area covered by such provision, the parties
hereto agree that the court making such determination shall reduce the scope, duration and/or area of such provision (and shall substitute appropriate provisions for any such invalid or unenforceable
provisions) in order to make such provision enforceable to the fullest extent permitted by law and/or shall delete specific words and phrases, and such modified provision shall then be enforceable and
shall be enforced. The parties hereto recognize that if, in any judicial proceeding, a court shall refuse to enforce any of the separate covenants contained in this Agreement, then that invalid or
unenforceable covenant contained in this Agreement shall be deemed eliminated from these provisions to the extent necessary to permit the remaining separate covenants to be enforced. In the event that
any court determines that the time period or the area, or both, are unreasonable and that any of the covenants is to that extent invalid or unenforceable, the parties hereto agree that such covenants
will remain in full 

18

 

force
and effect, first, for the greatest time period, and second, in the greatest geographical area that would not render them unenforceable. To the extent that a court of competent jurisdiction
determines that Executive willfully and materially breached Section 10.1(a) (other than the first sentence thereof), 10.1(b), 10.2 (other than the first and penultimate sentences thereof),
10.3, 10.4, or 10.8, the Company's obligations to make payments hereunder shall immediately be limited to the amounts, if any, remaining to be paid pursuant to Section 7(b) to the extent not
theretofore paid, provided that the Company's obligations to make such greater payments shall immediately be reinstated in the event that the determination of such court is overturned or reversed by
any higher court. 

        17.    Survivability.    The provisions of this Agreement which by their terms call for performance subsequent to
termination of Executive's employment hereunder, or of this Agreement, shall so survive such termination, whether or not such provisions expressly state that they shall so survive. 

        18.    Governing Law; Arbitration; Expenses; Interest.    

        18.1    Governing Law.    This Agreement shall be governed by and construed in accordance with the laws of the State
of New York applicable to agreements made and to be wholly performed within that State, without regard to its conflict of laws provisions. 

        18.2    Arbitration.    Any dispute or controversy arising under or in connection with this Agreement shall be settled
exclusively by arbitration in New York, New York by three arbitrators in accordance with the rules of the American Arbitration Association in effect at the time of submission to arbitration; provided,
however, that the Company shall be entitled to commence an action in any court of
competent jurisdiction to enforce Section 10, in part or in its entirety. Judgment may be entered on the arbitrators' award in any court having
jurisdiction. For purposes of entering such judgment or seeking enforcement of Section 10, the Company and Executive hereby consent to the jurisdiction of any or all of the following courts:
(i) the United States District Court for the Southern District of New York; (ii) any of the courts of the State of New York or the State of Delaware; or (iii) any other court
having jurisdiction. The Company and Executive further agree that any service of process or notice requirements in any such proceedings shall be satisfied if the rules of such court relating thereto
have been substantially satisfied. The Company and Executive hereby waive, to the fullest extent permitted by applicable law, any objection which either may now or hereafter have to such jurisdiction
and any defense of inconvenient forum. The Company and Executive hereby agree that a judgment upon an award rendered by the arbitrators may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Notwithstanding any provision in this Section 18, Executive shall be entitled to seek in any court of competent jurisdiction specific performance of
Executive's right, if any, to receive benefits during the pendency of any dispute or controversy arising under or in connection with this Agreement, which, to the extent such benefits are provided by
the Company, shall be credited against the total amounts otherwise finally determined to be owed to Executive pursuant to this Agreement. 

        18.3    Reimbursement of Expenses in Enforcing Rights.    If Executive seeks to interpret this Agreement or enforce
rights pursuant to this Agreement after such interpretation or such rights are disputed by the Company and Executive's position with respect to such interpretation or enforcement of such rights
prevails, the Company shall pay on behalf of Executive (or, if already paid by Executive, reimburse to Executive) all reasonable costs and expenses (including, without limitation, reasonable fees and
disbursements of counsel) actually incurred by Executive in asserting such prevailing position. 

        18.4    Interest on Unpaid Amounts.    Any amounts that have become payable pursuant to the terms of this Agreement or
any decision by arbitrators or judgment by a court of law pursuant to this Agreement but which are not timely paid shall bear interest at the prime rate in effect at the time such payment first
becomes payable, as quoted by the Company's principal bank. 

19

 

        19.    Reimbursement of Expenses of Executive in Negotiating Agreement.    All reasonable costs and expenses
(including, without limitation, reasonable fees and disbursements of counsel) incurred by Executive in connection with the negotiation, preparation, execution, or delivery of this Agreement shall be
paid on behalf of Executive (or, if already paid by Executive, reimbursed to Executive) promptly by the Company. 

        20.    Titles and Captions.    All paragraph titles or captions in this Agreement are for convenience only and in no
way define, limit, extend or describe the scope or intent of any provision hereof. 

        IN WITNESS WHEREOF, each of the parties hereto has duly executed this Agreement on November 12, 2003, to be deemed effective as of
the date first above written. 

	 	 	SCIENTIFIC GAMES CORPORATION
	 	 	By:	 
	 	 	 	

	 	 	Name: A. Lorne Weil

Title: Chairman and Chief Executive Officer
	

 	
 	

 Martin E. Schloss

20

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EMPLOYMENT AGREEMENT by and between SCIENTIFIC GAMES CORPORATION and MARTIN E. SCHLOSS dated as of November 1, 2002

Table of Contents

EMPLOYMENT AGREEMENTQuickLinks
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Exhibit 10.20  

EMPLOYMENT AGREEMENT  

 by and between  

 SCIENTIFIC GAMES CORPORATION  

 and  

 RICHARD M. WEIL  

 dated as of  

 January 1, 2003  

 
 
 

Table of Contents    
    

	 
	 	 
	 	 
	 	Page

	1.	 	Termination of Existing Employment Agreements	 	1
	2.	 	Employment; Term	 	1
	3.	 	Offices and Duties	 	1
	4.	 	Compensation	 	2
	5.	 	Benefits	 	2
	6.	 	Termination	 	3
	7.	 	Compensation Following Termination Prior to the End of the Term	 	5
	8.	 	Excise Tax Restoration Payment	 	13
	9.	 	Offsets; Withholding	 	13
	10.	 	Noncompetition; Nonsolicitation; Nondisclosure; etc	 	13
	 	 	10.1	 	Noncompetition; Nonsolicitation.	 	13
	 	 	10.2	 	Proprietary Information	 	15
	 	 	10.3	 	Confidentiality and Surrender of Records	 	15
	 	 	10.4	 	Nondisparagement	 	15
	 	 	10.5	 	No Other Obligations	 	16
	 	 	10.6	 	Forfeiture of Outstanding Options	 	16
	 	 	10.7	 	Enforcement	 	16
	 	 	10.8	 	Cooperation with Regard to Litigation	 	17
	 	 	10.9	 	Survival	 	17
	 	 	10.10	 	Company	 	17
	11.	 	Insurance for the Company's Benefit	 	17
	12.	 	Indemnification	 	17
	13.	 	Notices	 	18
	14.	 	Assignability; Binding Effect	 	18
	15.	 	Complete Understanding; Amendment; Waiver	 	19
	16.	 	Severability	 	19
	17.	 	Survivability	 	19
	18.	 	Governing Law; Arbitration; Expenses; Interest	 	20
	 	 	18.1	 	Governing Law	 	20
	 	 	18.2	 	Arbitration	 	20
	 	 	18.3	 	Reimbursement of Expenses in Enforcing Rights	 	20
	 	 	18.4	 	Interest on Unpaid Amounts	 	20
	19.	 	Reimbursement of Expenses of Executive in Negotiating Agreement	 	20
	20.	 	Titles and Captions	 	20

i

 
 

EMPLOYMENT AGREEMENT    
    

        This EMPLOYMENT AGREEMENT (this "Agreement") is made as of January 1, 2003 (the "Effective Date"), by and between SCIENTIFIC GAMES CORPORATION, a Delaware
corporation formerly known as Autotote Corporation (the "Company"), and Richard M. Weil ("Executive"). 

W I T N E S S E T H: 

        WHEREAS, Executive has been employed by the Company, as memorialized in a letter agreement, dated January 9, 2003 (the "Letter
Agreement"); and 

        WHEREAS, the Company desires to continue to employ Executive with the Company, and Executive wishes to continue to serve the Company, in
the capacities and on the terms and conditions set forth in this Agreement; and 

        WHEREAS, the Company and Executive desire that this Agreement replace and supersede the Resolution and the Letter Agreement; 

        NOW, THEREFORE, in consideration of the premises and the mutual benefits to be derived herefrom and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 

        1.    Termination of Existing Employment Agreements.    As of the Effective Date, all existing employment agreements
between the parties, whether oral or written, including the Letter Agreement, are hereby terminated, except as provided in Section 12. 

        2.    Employment; Term.    The Company hereby agrees to employ Executive, and Executive hereby accepts continued
employment with the Company, in accordance with and subject to the terms and conditions set forth herein. The term of employment of Executive under this Agreement (the "Term") shall be the period
commencing on the Effective Date and ending on December 31, 2004, and any period of extension thereof in accordance with this Section 2, subject to earlier termination in accordance with
Section 6. The Term shall be extended automatically without further action by either party by one additional year (added to the end of the Term) first on December 31, 2004 (extending the
Term to
December 31, 2005) and then on each succeeding December 31 thereafter, unless either party shall have given written notice to the other party prior to the September 30 preceding
the date upon which such extension would become effective electing not to further extend the Term, in which case Executive's employment shall terminate on the date upon which such extension would
otherwise have become effective, unless earlier terminated in accordance with Section 6; provided, however, that any termination pursuant to this Section 2 shall be subject to and
without limitation of or prejudice to Executive's rights with respect to (i) a termination for Good Reason pursuant to Section 6(e)(viii), or (ii) a termination without Cause
pursuant to Section 6(g), as applicable. 

        3.    Offices and Duties.    

        (a)   During
the Term, Executive shall serve as Vice President of International Business Development of the Company and shall report directly to the Chief Executive Officer of
the Company (the "CEO"). 

        (b)   Executive
shall have such duties and authority consistent with Executive's title as shall be reasonably assigned to Executive from time to time by the CEO or the Board
of Directors. 

        (c)   Executive
shall devote his full business time and attention and best efforts to his positions with the Company without commitment to other business endeavors, except
that so long as such activities do not preclude or render unlawful Executive's employment by the Company or otherwise materially inhibit the performance of his duties under this Agreement or
materially impair the business of the Company or its subsidiaries, Executive (i) may make personal investments which are not in conflict with his duties to the Company and manage personal and
family financial and legal affairs, (ii) may continue to serve on any board of directors on which he is known by the Board to be serving on the Effective Date, as specified in Schedule A
hereto, 

 

(iii) may
undertake public speaking engagements, and (iv) may serve as a director of (or hold a similar position with) any other organization upon approval by the Board of Directors in
writing. 

        4.    Compensation.    

        (a)   Base Salary. During the Term the Company shall pay Executive a base salary (the "Base Salary") at the initial rate of
$273,000.00 per annum, payable biweekly (except to the extent deferred under a
deferred compensation plan) and subject to all withholdings that are legally required or are agreed to by Executive. The Base Salary shall be increased annually on each January 1 during the
Term, beginning on January 1, 2004, by a percentage of the Base Salary then in effect equal to the percentage increase, if any, during the preceding twelve months in the Consumer Price Index
for the Greater New York area. In no event shall the Base Salary be reduced. 

        (b)   Incentive Compensation. Executive shall have the opportunity annually to earn incentive compensation in accordance with
the applicable plan(s) of the Company as in effect from time to time; provided, however, that Executive may in the discretion of the Company receive additional incentive compensation. 

        (c)   Executive Compensation Plans. Executive shall be entitled during the Term to participate, without discrimination or
duplication, in the Company's supplemental executive retirement plan and all other executive compensation plans and programs which are made generally available by the Company to its other senior
executives (including, without limitation, any stock option plans, performance share plans, management incentive plans, deferred compensation plans, and supplemental retirement plans) in accordance
with the terms of such plans and programs and subject to the Company's right to at any time amend or terminate any such plan or program. 

        5.    Benefits.    

        (a)   The
Company shall reimburse Executive for all reasonable and necessary travel, business entertainment and other business expenses incurred by Executive in connection
with the performance of his duties under this Agreement, on a timely basis upon submission by Executive of vouchers therefor in accordance with the Company's standard procedures. 

        (b)   Executive
shall be entitled to participate, without discrimination or duplication, in any and all medical insurance, group health, disability, life, accidental death,
dismemberment insurance, pension, retirement, profit sharing, stock ownership and other insurance, benefit, fringe benefits and perquisite plans and programs which are made generally available by the
Company to its other senior executives; provided, however, that Executive shall be eligible to participate in such insurance, benefit, fringe benefit and perquisite plans and programs on terms and
conditions at least as favorable to Executive as the most favorable terms and conditions offered to any other employee of the Company other than the Chief Executive Officer. The Company, in its sole
discretion, may at any time amend or terminate any such plans or programs; provided, however, that: 

        (i)    At
all times during the Term, such plans and programs in effect, in the aggregate, shall provide Executive with benefits and compensation substantially no less favorable
than is provided by the Company to Executive under such plans and programs as of the Effective Date; 

        (ii)   The
Company shall provide Executive with long-term disability insurance and benefits substantially no less favorable (including any required contributions
by Executive) than such insurance and benefits in effect on the Effective Date; and 

2

 

        (iii)  The
Company shall provide Executive with Company-paid group and individual term life insurance providing a death benefit no less than that provided under
Company-paid insurance in effect on the Effective Date. 

        (c)   If
the Company adopts an equity investment program permitting executives to elect to forego salary, annual incentive, other bonuses, annual option opportunities under
long-term incentive plans, or other specified compensation or benefits in exchange for a grant of stock options, restricted stock or other equity or non-equity awards or
benefits, Executive will be eligible to participate in such program. 

        (d)   Executive
shall be entitled to participate in the Company's deferred compensation plan in accordance with the terms of such plan and subject to the Company's right to at
any time amend or terminate any such plan. 

        (e)   Executive
shall be entitled to paid vacation, holidays, and any other time off in accordance with the Company's policies in effect from time to time. 

        (f)    The
Company will use its best efforts to file with the Securities and Exchange Commission and thereafter maintain the effectiveness of one or more registration
statements registering under the Securities Act of 1933, as amended, the offer and sale of shares by the Company to Executive pursuant to stock options or other equity-based awards granted to
Executive under Company plans. 

        (g)   For
purposes of computing the "Retirement Benefit" or equivalent payment or benefit due to Executive under any SERP (as defined in Section 7(a) below) in which
Executive participates during the Term, or any payment or benefit under Section 7 of this Agreement in lieu of any SERP benefit or payment, the "Final Average Compensation" or equivalent
reference compensation amount, in the case of Executive, shall, notwithstanding the terms of such SERP, be the higher of (x) such amount as otherwise determined pursuant to the terms of the
SERP or (y) an amount equal to the sum of (i) Executive's then-current Base Salary immediately prior to termination plus (ii) such then-current Base Salary
multiplied by (A) the sum of the Incentive Compensation Percentages for each of the Reference Years divided by (B) 3; where (X) "Incentive Compensation Percentage" for a Reference
Year means the percentage expressed by dividing the aggregate incentive compensation and bonuses paid to Executive in such Reference Year by Executive's Base Salary in such
Reference Year, and (Y) "Reference Year" means each of the three consecutive calendar years with the highest Incentive Compensation Percentages during the period of ten calendar years
immediately preceding termination. 

        6.    Termination.    Executive's employment hereunder may be terminated prior to the end of the Term under the
following circumstances: 

        (a)   Death; Total Disability. Executive's employment hereunder shall terminate upon Executive's death, and the Company may
terminate Executive's employment hereunder in the event of Executive's "Total Disability." For purposes of this Agreement, "Total Disability" shall mean Executive's failure to perform the duties and
responsibilities contemplated under this Agreement for a period of more than 180 days during any consecutive 12-month period, due to physical or mental incapacity or impairment as
determined by a physician or physicians selected by the Company and reasonably acceptable to Executive unless, within 30 days after Executive has received written notice from the Company of a
proposed termination due to such failure (as determined in accordance with the foregoing provisions of this sentence) which notice shall include a copy of the findings of such physician or physicians
and shall refer to this Section 6(a), Executive shall have returned to the full performance of his duties hereunder and shall have presented to the Company a written certificate of Executive's
good health by a physician selected by Executive and reasonably acceptable to the Company. 

3

 

        (b)   Retirement. Executive may terminate his employment hereunder upon retirement at or after age 65 or at or after age 55
following at least 10 years of full-time employment with the Company ("Normal Retirement") or prior to such age upon approval by the Company ("Approved Early Retirement"), in each
case upon forty-five (45) days' prior written notice to the Company referring to this Section 6(b). 

        (c)   Termination by the Company for Cause. The Company may terminate Executive's employment hereunder for Cause at any time
upon written notice to Executive referring to this Section 6(c). For purposes of this Agreement, the term "Cause" shall mean Executive's gross misconduct (as defined herein) or willful and
material breach of Section 10.1(a) (other than the first sentence thereof), 10.1(b), 10.2 (other than the first and penultimate sentences thereof), 10.3, 10.4, or 10.8. For purposes of this
definition, "gross misconduct" shall mean (i) Executive's conviction in a court of law of a felony under applicable federal or state law that was committed while Executive was employed by the
Company; (ii) Executive's willful and continued failure or refusal to perform his duties under this Agreement; or (iii) any act or omission on the part of Executive not requested or
approved by the Company constituting willful malfeasance or gross negligence in the performance of Executive's duties under this Agreement. For purposes of this Agreement, an act or failure to act on
Executive's part shall not include any act or failure to act resulting from any physical or mental incapacity or impairment of Executive. Executive may not be terminated for Cause unless and until
there shall have been delivered to him, within ninety (90) days after the Company (A) had actual knowledge of conduct or an event allegedly constituting Cause and (B) had reason
to believe that such conduct or event could be grounds
for termination for Cause, a written statement from the Company (after giving Executive reasonable notice of the specific grounds for such termination and, except if a felony conviction is the grounds
for termination, 30 days to correct such grounds, and affording Executive and his counsel the opportunity to be heard by the Company), concluding that Executive was guilty of conduct
constituting Cause (the "Cause Statement"). 

        If,
within 30 days of Executive's receipt of notice of his termination for Cause, Executive in good faith files a claim in an arbitration disputing the termination for Cause,
Executive shall, during the pendency of the arbitration, be considered a suspended employee of the Company and be entitled to receive benefits under Section 5 of this Agreement as if he had not
been terminated. If the arbitration panel finds that the Company did not have Cause to terminate Executive's employment: (x) Executive's employment shall be deemed to have been terminated
without Cause as of the date of notice of his termination for Cause; and (y) any amounts paid to Executive by the Company, including but not limited to the value of all benefits provided to
Executive, shall be credited against amounts owed to Executive under Section 7(c) or 7(d) of this Agreement. 

        If,
within 30 days of Executive's receipt of notice of his termination for Cause, Executive in good faith files a claim in arbitration disputing the termination for Cause,
Executive shall, during the pendency of the arbitration, be considered a suspended employee of the Company and be entitled to receive compensation and benefits under this Agreement as if he had not
been terminated. If the arbitration panel finds that the Company had Cause to terminate Executive's employment, Executive shall, within 5 days of the arbitration award, repay any amounts
provided to him by the Company in respect of periods commencing after his termination, including but not limited to salary continuation and the value of all benefits provided to Executive in respect
of periods commencing after his termination, in excess of any amounts to which he was entitled under this Agreement upon a termination for Cause. If the arbitration panel finds that the Company did
not have Cause to terminate Executive's employment: (x) Executive's employment shall be deemed to have been terminated without Cause as of the date which is 90 days after the date of
notice of his termination for Cause; and (y) any amounts paid to Executive by the Company in respect of periods commencing after 90 days following the date of the notice of his
termination for Cause, including but not limited to salary continuation and 

4

 

the
value of all benefits provided to Executive, shall be credited against amounts owed to Executive under Section 7(c) or 7(d) of this Agreement. 

        (d)   Termination by the Company Without Cause. The Company may terminate Executive's employment hereunder at any time, without
Cause, for any reason or no reason. 

        (e)   Termination by Executive for Good Reason. Executive may terminate his employment hereunder for Good Reason. For purposes
of this Agreement, "Good Reason" shall mean: without Executive's prior written consent, (i) a material change, adverse to Executive, in Executive's positions, titles or offices as set forth in
Section 3, or status rank, nature of responsibilities, or authority within the Company, except, in such case, in connection with the termination of Executive's employment for Cause, Total
Disability,
Normal Retirement or Approved Early Retirement, or death, (ii) an assignment of any significant duties to Executive which are inconsistent with his positions or offices held under
Section 3, (iii) a decrease in Base Salary or other compensation or in any compensation opportunities or a material decrease in the aggregate benefits provided under this Agreement,
(iv) any other failure by the Company to perform any material obligation under, or breach by the Company of any material provision of, this Agreement, (v) the Company's election not to
further extend the Term under Section 2, (vi) a relocation of the Corporate Offices of the Company more than 35 miles from the latest location of such offices prior to such relocation,
(vii) any failure to secure the agreement of any successor corporation or other entity to the Company to fully assume the Company's obligations under this Agreement in a form reasonably
acceptable to Executive, and (viii) any attempt by the Company to terminate Executive for Cause which does not result in a valid termination for Cause, except where (x) valid grounds for
Cause exist but are corrected as permitted under Section 6(c) or (y) the Company, prior to 35 days after Executive's receipt of a copy of the Cause Statement, revokes the Cause
Statement, takes any and all other steps reasonably necessary to retract its allegations of Cause and fully restore Executive to active employment in accordance with the terms of this Agreement,
effective immediately prior to the issuance of the Cause Statement, and pays (or reimburses Executive for) any costs and expenses reasonably incurred by Executive in connection with such attempted
termination. Executive shall not be considered to have terminated for Good Reason unless Executive shall have provided the Company with written notice of the specific reasons for such termination
within ninety (90) days after he has actual knowledge of the event that is the basis for such termination and (except in the case of a termination pursuant to clause (viii) of the
preceding sentence) affords the Company at least thirty (30) days to cure the alleged conduct. 

        (f)    Termination by Executive for Other than Good Reason. Executive may terminate his employment hereunder for any reason or
no reason upon thirty (30) days' prior written notice to the Company referring to this Section 6(f); provided, however, that a termination of Executive's employment by reason of death,
Total Disability, Normal or Early Retirement, or Good Reason shall not constitute a termination by Executive for other than Good Reason pursuant to this Section 6(f). 

        7.    Compensation Following Termination Prior to the End of the Term.    In the event that Executive's employment
hereunder is terminated prior to the end of the Term, Executive shall be entitled only to the following compensation and benefits: 

        (a)   Termination by Reason of Death, Normal Retirement, or Approved Early Retirement. In the event that Executive's employment
is terminated prior to the expiration of the Term by reason of Executive's death, pursuant to Section 6(a), or by reason of his Normal Retirement or Approved Early Retirement pursuant to
Section 6(b), the Company shall pay the following amounts, and 

5

 

make
the following other benefits available, to Executive (or Executive's spouse or estate, as the case may be): 

        (i)    Any
accrued but unpaid Base Salary (as determined pursuant to Section 4(a)) for services rendered to the date of termination; 

        (ii)   All
vested, nonforfeitable amounts owing or accrued at the date of termination under any compensation and benefit plans, programs, and arrangements set forth or
referred to in Sections 4(b), 4(c), and 5 (including any earned and vested payments and benefits under any supplemental executive retirement plan or substantially similar plan and any earned and
vested annual incentive compensation and long term incentive award but excluding any incentive compensation under Section 4(b) for the year of termination) in which Executive theretofore
participated, to be paid in accordance with the terms and conditions of such plans, programs, and arrangements (and agreements and documents thereunder); 

        (iii)  In
lieu of any incentive compensation under Section 4(b) for the year of termination, an amount equal to the amount of annual incentive compensation payable to
Executive assuming achievement of the maximum performance targets for such year, multiplied by a fraction the numerator of which is the number of days Executive was employed in the year of termination
and the denominator of which is the total number of days in the year of termination; 

        (iv)  Stock
options held by Executive at termination, if not then vested and exercisable, will become fully vested and exercisable at the date of such termination, and, in
other respects, all such options shall be governed by the plans and programs and the agreements and other documents pursuant to which such options were granted; 

        (v)   All
deferred stock awards, and all deferral arrangements under any deferred compensation plan, will be settled in accordance with the plans and programs under which the
awards were granted or governing the deferral including, if so permitted by the plans or programs, Executive's duly executed deferral election forms or the terms of any mandatory deferral; 

        (vi)  Reasonable
business expenses and disbursements incurred by Executive prior to such termination will be reimbursed in accordance with Section 5(a); 

        (vii) Executive
shall be entitled to designate (and change, to the extent permitted under applicable law) a beneficiary or beneficiaries to receive any compensation or
benefits payable hereunder following Executive's death; 

Provided,
however, that Executive will be entitled to the benefit of any terms of plans or agreements applicable to Executive which are more favorable than those specified in this Section 7(a). 

Amounts
payable under (i), (ii), (iii), and (vi) above will be paid as promptly as practicable after termination of Executive's employment; provided, however, that, to the extent that the
Company would not be entitled to deduct any such payments (other than those under (i) above) under Internal Revenue Code Section 162(m), such payments shall be made at the earliest time
that the payments would be deductible by the Company without limitation under Section 162 (m) (unless this provision is waived by the Company). 

        (b)   Termination by the Company for Cause; Termination by Executive for Other than Good Reason. In the event that Executive's
employment is terminated by the Company for Cause pursuant to Section 6(c) or by Executive for other than Good Reason pursuant to Section 6(f), the 

6

 

Company
shall pay the following amounts, and make the following other benefits available, to Executive: 

        (i)    Any
accrued but unpaid Base Salary (as determined pursuant to Section 4(a)) for services rendered to the date of termination; 

        (ii)   All
vested nonforfeitable amounts owing or accrued at the date of termination under any compensation and benefit plans, programs, and arrangements set forth or referred
to in Sections 4(b), 4(c), and 5 hereof (including any earned and vested payments and benefits under any supplemental executive retirement plan or substantially similar plan and any earned and vested
annual incentive compensation) in which Executive theretofore participated will be paid under the terms and conditions of such plans, programs, and arrangements (and agreements and documents
thereunder); 

        (iii)  Except
as provided in Section 10.6, all stock options and deferred stock awards will be governed by the terms of the plans and programs under which the options
or awards were granted; 

        (iv)  Non-forfeitable
amounts credited to any deferral account of Executive under deferral arrangements referred to in Section 5(d) hereof at the date of
termination will be settled in accordance with the plans and programs under which the awards were granted or governing the deferral including, if so permitted by the plans or programs, Executive's
duly executed deferral election forms or the terms of any mandatory deferral; and 

        (v)   Reasonable
business expenses and disbursements incurred by Executive prior to such termination will be reimbursed, in accordance with Section 5(a). 

Amounts
payable under (i), (ii), and (v) above will be paid as promptly as practicable after termination of Executive's employment; provided, however, that, to the extent that the Company would
not be entitled to deduct any such payments under Internal Revenue Code Section 162(m), such payments shall be made at the earliest time that the payments would be deductible by the Company
without limitation under Section 162(m) (unless this provision is waived by the Company). 

        (c)   Termination by Reason of Total Disability; Termination by the Company Without Cause or by Executive For Good Reason Not at the Time of, Within
Two Years After, or in Anticipation of a Change in Control. In the event that Executive's employment is terminated by reason of Total Disability pursuant to
Section 6(a), or by the Company without Cause pursuant to Section 6(d) before a Change in Control (and not in "anticipation of a Change in Control," as defined below) or more than two
years after a Change in Control, or by Executive for Good Reason pursuant to Section 6(e) before a Change in Control (and not in "anticipation of a Change in Control," as defined below) or more
than two years after a Change in Control, the Company shall pay the following amounts, and make the following other benefits available, to Executive: 

        (i)    A
lump sum cash payment in an amount equal (except as provided in clause (viii) of Section 6(e)) to the sum of (x) Executive's
then-current Base Salary at the rate payable in accordance with Section 4(a) hereof, at the date of termination plus (y) the Severance Annual Incentive Amount (as defined
below), will be paid to Executive; provided, however, that Executive may elect to receive the amount payable under this Section 7(c)(i) in equal monthly installments over the
12 months following termination, without interest, in lieu of receiving a lump sum cash payment. For purposes of this Agreement, the "Severance Annual Incentive Amount" shall be the greater of
(1) the average annual incentive compensation paid to Executive for the three years immediately preceding the year of termination or (2) the annual incentive compensation payable to
Executive upon achievement of the maximum performance targets for the year of termination; 

7

 

        (ii)   The
unpaid portion of Base Salary at the rate payable, in accordance with Section 4(a) hereof, at the date of termination, pro rated through such date of
termination, will be paid; 

        (iii)  All
vested, nonforfeitable amounts owing or accrued at the date of termination under any compensation and benefit plans, programs, and arrangements set forth or
referred to in Sections 4(b) and 5(a) and 5(c) hereof (including any earned and vested payments and benefits under any supplemental executive retirement plan or substantially similar plan and any
earned and vested annual incentive compensation) in which Executive theretofore participated will be paid under the terms and conditions of such plans, programs, and arrangements (and agreements and
documents thereunder); 

        (iv)  Stock
options held by Executive at termination, if not then vested and exercisable, will become fully vested and exercisable at the date of such termination, and, in
other respects, all such options shall be
governed by the plans and programs and the agreements and other documents pursuant to which such options were granted; 

        (v)   Deferred
stock held by Executive at termination will become fully vested and non-forfeitable, and shall be settled upon such termination, without regard to
any stated period of deferral otherwise remaining in respect of such amounts; 

        (vi)  Executive
shall be entitled to receive an amount equal to the amount accrued under any deferred compensation plan or agreement in effect at the date of termination in
which Executive is a participant or party, less required withholding taxes under Section 9, as promptly as practicable following such date of termination; the amount paid under this
Section 7(c)(vi) shall be equal to Executive's account balance on the date of the termination of Executive's employment if the deferred compensation amount is in the form of an account
balance or, if the deferred compensation amount is not in the form of an account balance, the present value of the deferred compensation on the date of the termination of Executive's employment,
calculated using a discount rate (the "Discount Rate") equal to the yield, at the time of determination, for U.S. Treasury securities having a maturity of thirty years; if Executive elects to receive
payment under this Section 7(c)(vi), Executive shall forfeit all rights under any such deferred compensation plan or agreement, and such deferred compensation plan or agreement shall have no
force and effect with respect to Executive; 

        (vii) Reasonable
business expenses and disbursements incurred by Executive prior to such termination will be reimbursed, in accordance with Section 5(a); 

        (viii) For
(A) a period of 3 years after such termination other than due to Total Disability or (B) the period from termination due to Total Disability
until Executive attains age 65, Executive shall continue to participate in all employee and executive benefit plans, programs, and arrangements under Section 5 providing health, medical,
disability and life insurance benefits in which Executive was participating immediately prior to termination, the terms of which allow Executive's continued participation, as if Executive had
continued in employment with the Company during such period or, if such plans, programs, or arrangements do not allow Executive's continued participation, Executive shall receive a cash payment
equivalent on an after-tax basis to the value of the additional benefits Executive would have received under such plans, programs, and arrangements in which Executive was participating
immediately prior to termination, as if Executive had received credit under such plans, programs, and arrangements for service and age with the Company during such period following Executive's
termination as provided in clause (A) or (B) above (as applicable), with such benefits payable by the Company at the same times and in the same manner as such benefits would have been
received by Executive under such plans (it being understood that the value of any insurance-provided benefits will be based on the premium cost to Executive, 

8

 

which
shall not exceed the highest risk premium charged by a carrier having an investment grade or better credit rating); 

        (ix)  In
lieu of any payments and benefits under any SERP in which Executive participated during the Term, Executive shall be entitled to receive the greater of:
(y) all payments and benefits to which Executive otherwise would have been entitled under the SERP (computed in accordance with Section 5(g) hereof); and (z) all payments and
benefits to which Executive otherwise would have been entitled under the SERP (computed in accordance with Section 5(g) hereof) if Executive's years of Service (as defined in the SERP) were
increased by five years. Such payments and benefits shall be payable in a lump sum or in equal installments, as determined by Executive in his discretion, in accordance with the terms and conditions
of the SERP; provided, however, that Executive shall not be entitled to receive payments in installments unless at least 12 months prior to the date of the termination of his employment, he
elected to receive payments in installment form under the SERP; if Executive receives such payment(s) under this Section 7(c)(ix), Executive shall forfeit all rights under the SERP, and the
SERP shall have no force and effect with respect to Executive; 

Provided,
however, that Executive will be entitled to the benefit of any terms of plans or agreements applicable to Executive which are more favorable than those specified in this Section 7(c).
Except as otherwise expressly provided above, amounts payable under this Section 7(c), will be paid as promptly as practicable after termination of Executive's employment, and in no event more
than 30 days after such termination. 

Notwithstanding
the foregoing, if a reduction in Base Salary or other level of compensation or benefit was a basis for Executive's termination for Good Reason, the Base Salary or other level of
compensation in effect before such reduction shall be used to calculate payments or benefits under this Section 7(c). 

For
purposes of this Agreement, a "Change in Control" shall be deemed to have occurred if: 

	(i)
	Any
"person" as defined in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and as used in sections 13(d) and 14(d)
thereof, including a "group" as defined in Section 13 (d) of the Exchange Act but excluding the Company and any subsidiary and any employee benefit plan sponsored or maintained by the
Company or any subsidiary (including any trustee of such plan acting as trustee), directly or indirectly, becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange
Act) of securities of the Company representing at least 40% of the combined voting power of the Company's then-outstanding securities;

	(ii)
	The
stockholders of the Company approve a merger, consolidation, recapitalization, or reorganization of the Company, or a reverse stock split of any class of voting
securities of the Company, or the consummation of any such transaction if stockholder approval is not obtained, other than any such transaction which would result in at least 60% of the total voting
power represented by the voting securities of the Company or the surviving entity outstanding immediately after such transaction being beneficially owned by persons who together beneficially owned at
least 80% of the combined voting power of the voting securities of the Company outstanding immediately prior to such transaction; provided that, for purposes of this paragraph (ii), such
continuity of ownership (and preservation of relative voting power) shall be deemed to be satisfied if the failure to meet such 60% threshold is due solely to the acquisition of voting securities by
an employee benefit plan of the Company or such surviving entity or of any subsidiary of the Company or such surviving entity; 

9

 

	(iii)
	The
stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or
substantially all of its assets (or any transaction having a similar effect); or

	(iv)
	During
any period of two consecutive years, individuals who at the beginning of such period constitute the Board, together with any new director (other than a director
designated by a person who has entered into an agreement with the Company to effect a transaction described in paragraph (i), (ii), or (iii) hereof) whose election by the Board or
nomination for election by the Company's stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at
the beginning of the period or whose election or nomination for election was previously so approved (the "Continuing Directors"), cease for any reason to constitute at least a majority of the Board. 

10

   
For purposes of this Agreement, a termination by the Company without Cause in "anticipation of a Change in Control" shall mean a termination of Executive's employment by the Company without Cause
after a Threatened Change in Control if a Change in Control actually occurs (i) within two years after such termination, unless relevant facts and circumstances clearly demonstrate that the
possibility of a Change in Control would occur was remote as of the date of such termination, or (ii) within six months after such termination. 

For
purposes of this Agreement, the term "Threatened Change in Control" shall mean (x) the issuance of a proxy statement by the Company with respect to an election of directors for which there
is proposed one or more directors who are not recommended by the Board of Directors of the Company or its nominating committee, where the election of such proposed director or directors would result
in a Change in Control; or (y) the announcement by any person of an intention to take actions which might reasonably result in a Change in Control. 

        (d)    Termination by the Company Without Cause or by Executive For Good Reason at the Time of or Within Two Years After a Change in Control or in
Anticipation of a Change in Control.    In the event that Executive's employment is terminated at the time of or within two years after a Change in Control, or in
"anticipation of a Change in Control" as defined above, by the Company without Cause pursuant to Section 6(d) or by Executive for Good Reason pursuant to Section 6(e) the Company shall
pay the following amounts, and make the following other benefits available, to Executive: 

          (i)  A
lump sum cash payment in an amount equal to three times the sum of (x) Executive's then-current Base Salary at the rate payable in accordance with
Section 4(a) hereof, at the date of termination plus (y) the Severance Annual Incentive Amount (as defined in Section 7(c)(i)), will be paid to Executive; provided, however, that
Executive may elect to receive the amount payable under this Section 7(d)(i) in equal monthly installments over the 36 months following termination, without interest, in lieu of
receiving a lump sum cash payment. 

         (ii)  The
unpaid portion of Base Salary at the rate payable, in accordance with Section 4(a) hereof, at the date of termination, pro rated through such date of
termination, will be paid; 

        (iii)  All
vested, nonforfeitable amounts owing or accrued at the date of termination under any compensation and benefit plans, programs, and arrangements set forth or
referred to in Sections 4(b) and 5(a) and 5(c) hereof (including any earned and vested payments and benefits under any supplemental executive retirement plan or substantially similar plan and any
earned and vested annual
incentive compensation) in which Executive theretofore participated will be paid under the terms and conditions of such plans, programs, and arrangements (and agreements and documents thereunder); 

        (iv)  In
lieu of any annual incentive compensation under Section 4(b) for the year in which Executive's employment terminated (unless otherwise payable under
(iii) above), Executive will be paid an amount equal to (X) the Severance Annual Incentive Amount as defined in Section 7(c)(i), multiplied by (Y) a fraction the numerator
of which is the number of days Executive was employed in the year of termination and the denominator of which is the total number of days in the year of termination; 

         (v)  Stock
options held by Executive at termination, if not then vested and exercisable, will become fully vested and exercisable at the date of such termination, and, in
other respects, all such options shall be governed by the plans and programs and the agreements and other documents pursuant to which such options were granted; 

11

 

        (vi)  Deferred
stock held by Executive at termination will become fully vested and non-forfeitable, and shall be settled upon such termination, without regard to
any stated period of deferral otherwise remaining in respect of such amounts; 

       (vii)  Executive
shall be entitled to receive an amount equal to the amount accrued under any deferred compensation plan or agreement in effect at the date of termination in
which Executive is a participant or party, less required withholding taxes under Section 9, as promptly as practicable following such date of termination; the amount paid under this
Section 7(d)(vi) shall be equal to Executive's account balance on the date of the termination of Executive's employment if the deferred compensation amount is in the form of an account
balance or, if the deferred compensation amount is not in the form of an account balance, the present value of the deferred compensation on the date of the termination of Executive's employment,
calculated using a discount rate (the "Discount Rate") equal to the yield, at the time of determination, for U.S. Treasury securities having a maturity of thirty years; if Executive elects to receive
payment under this Section 7(d)(vi), Executive shall forfeit all rights under any such deferred compensation plan or agreement, and such deferred compensation plan or agreement shall have no
force and effect with respect to Executive; 

      (viii)  Reasonable
business expenses and disbursements incurred by Executive prior to such termination will be reimbursed, in accordance with Section 5(a); 

        (ix)  In
lieu of any payments and benefits under any SERP in which Executive participated during the Term, Executive shall be entitled to receive the greater of:
(y) all payments and benefits to which Executive otherwise would have been entitled under the SERP (computed in accordance with
Section 5(h) hereof); and (z) all payments and benefits to which Executive otherwise would have been entitled under the SERP (computed in accordance with Section 5(g) hereof) if
Executive's years of Service (as defined in the SERP) were increased by five years. Such payments and benefits shall be payable in a lump sum or in equal installments, as determined by Executive in
his discretion, in accordance with the terms and conditions of the SERP; provided, however, that Executive shall not be entitled to receive payments in installments unless at least 12 months
prior to the date of the termination of his employment, he elected to receive payments in installment form under the SERP; if Executive receives such payment(s) under this Section 7(c)(x),
Executive shall forfeit all rights under the SERP, and the SERP shall have no force and effect with respect to Executive; 

Provided,
however, that Executive will be entitled to the benefit of any terms of plans or agreements applicable to Executive which are more favorable than those specified in this Section 7(d).
Except as otherwise expressly provided above, amounts payable under this Section 7(d), will be paid as promptly as practicable after termination of Executive's employment, and in no event more
than 30 days after such termination. 

        (e)    No Obligation to Mitigate.    Executive shall not be required to seek other employment or otherwise to mitigate
Executive's damages upon any termination of employment; provided, however, that, to the extent Executive receives from a subsequent employer health or other insurance benefits substantially similar to
the benefits referred to in Section 5, any such benefits to be provided by the Company to Executive following the Term shall be correspondingly reduced. 

        (f)    No Other Benefits or Compensation.    Except as may be provided under this Agreement, under any other written
agreement between Executive and the Company, or under the terms of any plan or policy applicable to Executive, Executive shall have no right to receive any other compensation from the Company, or to
participate in any other plan, arrangement or benefit provided by the Company, with respect to any future period after such termination or resignation. 

12

 

        (g)    Release of Employment Claims.    Executive agrees, as a condition to receipt of any termination payments and
benefits provided for in Section 7 (other than compensation and benefits earned through the date of termination), that he will execute a general release agreement, in a form reasonably
satisfactory to the Company, releasing any and all claims arising out of Executive's employment (other than enforcement of this Agreement) 

        8.    Excise Tax Restoration Payment.    Notwithstanding anything to the contrary in this Agreement, in the event that
any payment or distribution of any type to or for the benefit of Executive made by the Company, by any of its affiliates, by any person who acquires ownership or effective control or ownership of a
substantial portion of the Company's assets (within the meaning of section 280G of the Internal Revenue Code of 1986, as amended, and the regulations thereunder (the "Code")) or by any
affiliate of such person, whether paid or payable or distributed or distributable pursuant to the terms of an employment agreement or otherwise (the "Total Payments"), would be subject to the excise
tax imposed by section 4999 of the Code or any interest or penalties with respect to such excise tax (such excise tax, together with any such interest or penalties, are collectively referred to
as the "Excise Tax"), then Executive shall be entitled to receive an additional payment (an "Excise Tax Restoration Payment") in an amount that shall fund the payment by Executive of any Excise Tax on
the Total Payments as well as all income taxes imposed on the Excise Tax Restoration Payment, any Excise Tax imposed on the Excise Tax Restoration Payment and any interest or penalties imposed with
respect to taxes on the Excise Tax Restoration or any Excise Tax. 

        9.    Offsets; Withholding.    Amounts required to be paid by the Company to Executive pursuant to this Agreement
shall not be subject to offset except for any amounts that are owed to the Company by Executive due to his receipt of funds as a result of his fraudulent activity. The foregoing and other provisions
of this Agreement notwithstanding (but without limiting the terms of Section 8), all payments to be made to Executive under this Agreement, including under Section 7, or otherwise by the
Company will be subject to required withholding taxes and other legally required deductions. 

        10.    Noncompetition; Nonsolicitation; Nondisclosure; etc.    

        10.1    Noncompetition; Nonsolicitation.    

        (a)   Executive
acknowledges the highly competitive nature of the Company's business and that access to the Company's confidential records and proprietary information renders
him special and unique within the Company's industry. In consideration of the amounts that may hereafter be paid to Executive pursuant to this Agreement (including, without limitation, Sections 4 and
7), Executive agrees that during the Term (and any extensions thereof) and during the Covered Time (as defined in Section 10.1(e)), Executive, alone or with others, will not, directly or
indirectly, engage (as owner, investor, partner, stockholder, employer, employee, consultant, advisor, director or otherwise) in any business in which he has been directly engaged on behalf of the
Company, or which he has supervised as an executive thereof, during the last two years prior to such termination, or was engaged in by the Company with Executive's actual knowledge or planned by the
Company with Executive's actual knowledge at the time of such termination, in any geographic area in which such business was conducted or planned to be conducted (a "Competing Business"); provided,
however, that this Section 10.1(a) shall not restrict Executive from engaging in (and the term "Competing Business" shall not include) any business in which the Company no longer engages or
plans to engage; provided further that this Section 10.1(a) shall not apply if Executive terminates his employment for Good Reason pursuant to Section 6(e) or if Executive's employment
is terminated by the Company without Cause before a Change in Control or more than two years after a Change in Control (and not in "anticipation of a Change in Control"); and provided further that
activities of the Company, or activities engaged in by Executive for or on behalf of the Company, are not restricted by this 

13

 

Section 10.1(a)
and shall not constitute a "Competing Business." Ownership of (i) the securities of any entity for which a Competing Business represents less than 10% of net sales or net
income (as determined in accordance with generally accepted accounting principles) for the most recent fiscal year (or if such entity has not completed a fiscal year, net sales or net income projected
for its first fiscal year) or (ii) not more than two percent of the equity securities of any company having securities listed on an exchange or regularly traded in the
over-the-counter market shall not, of itself, be deemed inconsistent with this Section 10.1(a). Nothing herein shall require Executive to sell or otherwise dispose of
any securities of any entity if the acquisition of such securities did not violate the terms of this Section 10.1(a) at the time of such acquisition. 

        (b)   In
further consideration of the amounts that may hereafter be paid to Executive pursuant to this Agreement (including, without limitation, Sections 4, 5, and 7),
Executive agrees that during the Term (including any extensions thereof) and during the Covered Time he shall not, directly or indirectly, (i) solicit or attempt to induce any of the employees,
agents, consultants or representatives of the Company to terminate his, her, or its relationship with the Company; (ii) solicit or attempt to induce any of the employees, agents, consultants or
representatives of the Company to become employees, agents, consultants or representatives of any other person or entity; (iii) solicit or attempt to induce any customer, vendor or distributor
of the Company to curtail or cancel any business with the Company; or (iv) hire any person who, to Executive's actual knowledge, is, or was within 180 days prior to such hiring, an
employee of the Company. 

        (c)   During
the Term (including any extensions thereof) and during the Covered Time, Executive agrees that upon the earlier of Executive's (i) negotiating with any
Competitor (as defined below) concerning the possible employment of Executive by the Competitor, (ii) responding to (other than for the purpose of declining) an offer of employment from a
Competitor, or (iii) becoming employed by a Competitor, (x) Executive will provide copies of Section 10 of this Agreement to the Competitor, and (y) in the case
of any circumstance described in (i) or (ii) above occurring during the Covered Time, and in the case of any circumstance described in (iii) above occurring during the Term or
during the Covered Time, Executive will promptly provide notice to the Company of such circumstances. Executive further agrees that the Company may provide notice to a Competitor of Executive's
obligations under this Agreement. For purposes of this Agreement, "Competitor" shall mean any entity (other than the Company) that engages, directly or indirectly, in the United States in any
Competing Business. 

        (d)   Executive
understands that the restrictions in this Section 10.1 may limit his ability to earn a livelihood in a business similar to the business of the Company
but nevertheless agrees and acknowledges that the consideration provided under this Agreement (including, without limitation, Sections 4, 5, and 7) is sufficient to justify such restrictions.
In consideration thereof and in light of Executive's education, skills and abilities, Executive agrees that he will not assert in any forum that such restrictions prevent him from earning a living or
otherwise should be held void or unenforceable. 

        (e)   For
purposes of this Section 10.1, "Covered Time" shall mean the period beginning on the date of termination of Executive's employment (the "Date of Termination")
and ending twenty-four months after the Date of Termination; provided, however, that if Executive terminates his employment for Good Reason pursuant to clause (viii) of
Section 6(e), "Covered Time" shall mean for purposes of Section 10.1(a) the period beginning on the Date of Termination and ending six months after the Date of Termination. 

14

 

        10.2    Proprietary Information.    Executive acknowledges that during the course of his employment with the Company
he will necessarily have access to and make use of proprietary information and confidential records of the Company. Executive covenants that he shall not during the Term or at any time thereafter,
directly or indirectly, use for his own purpose or for the benefit of any person or entity other than the Company, nor otherwise disclose to any individual or entity, any such proprietary information,
unless such disclosure has been authorized in writing by the Company or is otherwise required by law. The term "proprietary information" means: (a) the software products, programs,
applications, and processes utilized by the Company; (b) the name and/or address of any customer or vendor of the Company or any information concerning the transactions or relations of any
customer or vendor of the Company with the Company; (c) any information concerning any product, technology, or procedure employed by the Company but not generally known to its customers or
vendors or competitors, or under development by or being tested by the Company but not at the time offered generally to customers or vendors; (d) any information relating to the Company's
computer software, computer systems, pricing or marketing methods, sales margins, cost of goods, cost of material, capital structure, operating results, borrowing arrangements or business plans;
(e) any information identified as confidential or proprietary in any line of business engaged in by the Company; (f) any information that, to Executive's actual knowledge, the Company
ordinarily maintains as confidential or proprietary; (g) any business plans, budgets, advertising or marketing plans; (h) any information contained in any of the Company's written or
oral policies and procedures or manuals; (i) any information belonging to customers, vendors or any other person or entity which the Company, to Executive's actual knowledge, has agreed to hold
in confidence; (j) any inventions, innovations or improvements covered by this Agreement; and (k) all written, graphic, electronic data and other material containing any of the
foregoing. Executive acknowledges that information that is not novel or copyrighted or patented may nonetheless be proprietary information. The term "proprietary information" shall not include
information generally known or available to the public or generally known or available to the industry or information that becomes available to Executive on a non-confidential basis from a
source other than the Company or its directors, officers, employees, or agents (without breach of any obligation of confidentiality of which Executive has actual knowledge at the time of the relevant
disclosure by Executive.) 

        10.3    Confidentiality and Surrender of Records.    Executive shall not during the Term or at any time thereafter
(irrespective of the circumstances under which Executive's employment by the Company terminates), except as required by law, directly or indirectly publish, make known or in any fashion disclose any
confidential records to, or permit any inspection or copying of confidential records by, any individual or entity other than in the course of such individual's or entity's employment or retention by
the Company, nor shall he retain, and will deliver promptly to the Company, any of the same following termination of his employment hereunder for any reason or upon request by the Company. For
purposes hereof, "confidential records" means those portions of correspondence, memoranda, files, manuals, books, lists, financial, operating or marketing records, magnetic tape, or electronic or
other media or equipment of any kind in Executive's possession or under his control or accessible to him which contain any proprietary information. All confidential records shall be and remain the
sole property of the Company during the Term and thereafter. 

        10.4    Nondisparagement.    Executive shall not, during the Term and thereafter, disparage in any material respect
the Company, any affiliate of the Company, any of their respective businesses, any of their respective officers, directors or employees, or the reputation of any of the foregoing persons or entities.
Notwithstanding the foregoing, nothing in this Agreement shall preclude Executive from making truthful statements that are required by applicable law, regulation or legal process or are reasonably
required to describe the conduct, decisions, or policies of the Company or any of its affiliates, or their respective businesses, officers, directors or employees. 

15

 

        10.5    No Other Obligations.    Executive represents that he is not precluded or limited in his ability to undertake
or perform the duties described herein by any contract, agreement or restrictive covenant. Executive covenants that he shall not employ the trade secrets or proprietary information of any other person
in connection with his employment by the Company without such person's authorization. 

        10.6    Forfeiture of Outstanding Options.    The provisions of Section 7 notwithstanding, if Executive
willfully and materially fails to comply with any restrictive covenant under Section 10.1(a) (other than the first sentence thereof), 10.1(b), 10.2 (other than the first and penultimate
sentences thereof), 10.3, 10.4, or 10.8, all options to purchase Common Stock granted by the Company and then held by Executive or a transferee of Executive shall be immediately forfeited and
thereupon such options shall be cancelled. Notwithstanding the foregoing, Executive shall not forfeit any option (i) unless there shall have been delivered to him, within ninety
(90) days after the Board (A) had knowledge of conduct or an event
allegedly constituting grounds for such forfeiture and (B) had reason to believe that such conduct or event could be grounds for such forfeiture, a written statement from the Company (after
giving Executive reasonable notice specifying the nature of the grounds for such forfeiture and not less than 30 days to correct such grounds and affording Executive and his counsel the
opportunity to be heard by the Company), concluding that, in the good faith opinion of the Company, Executive has engaged and continues to engage in conduct set forth in this Section 10.6 which
constitutes grounds for forfeiture of Executive's options; and (ii) if, within 30 days following his receipt of such written statement, Executive commences an arbitration proceeding in
accordance with Section 18.2 disputing such grounds, in which case such forfeiture shall be tolled pending the resolution of Executive's claim and shall not occur if the arbitration panel finds
that the Company is not entitled to cause the forfeiture. 

        If
the arbitration panel finds that the Company is entitled to cause the forfeiture of Executive's options, Executive shall be required to forfeit such options immediately. If any option
is exercised after delivery of the Board's notice of forfeiture and if such forfeiture subsequently occurs pursuant to the foregoing terms of this Section 10.6, Executive shall be required to
return to the Company all shares acquired upon such exercise; provided further that if Executive has sold any shares he acquired upon such exercise, Executive shall pay to the Company an amount equal
to the difference between the aggregate sale price of the shares sold and the aggregate exercise price paid by Executive for such shares. Any such forfeiture shall apply to such options
notwithstanding any term or provision of any option agreement. If the Board or the arbitration panel finds that the Company is not entitled to cause a forfeiture for which a notice is given to
Executive, the Company shall pay (or reimburse, if already paid by Executive) all expenses actually incurred by Executive in connection with such attempted forfeiture. 

        10.7    Enforcement.    Executive acknowledges and agrees that, by virtue of his position, services and access to and
use of confidential records and proprietary information, any violation by him of any of the undertakings contained in this Section 10 would cause the Company immediate, substantial and
irreparable injury for which it has no adequate remedy at law. Accordingly, Executive agrees and consents to the entry of an injunction or other equitable relief by a court of competent jurisdiction
restraining any violation or threatened violation of any undertaking contained in this Section 10. The Company agrees and consents to the entry of an injunction or other equitable relief by a
court of competent jurisdiction restraining the Company from making any defamatory statements, whether orally or in writing, relating to alleged violations or threatened violations by Executive of any
undertaking contained in this Section 10. Executive and the Company each waive posting of any bond otherwise necessary to secure such injunction or other equitable relief. Rights and remedies
provided for in this Section 10 are cumulative and shall be in addition to rights and remedies otherwise available to the parties hereunder or under any other 

16

 

agreement
or applicable law. Subject to Section 18.3, the Company shall bear all costs and expenses arising in connection with any enforcement pursuant to this Section 10.7. 

        10.8    Cooperation with Regard to Litigation.    Except to the extent that Executive has or intends to assert in good
faith an interest or position adverse to or inconsistent with the interest or position of the Company, Executive agrees to cooperate reasonably with the Company, during the Term and thereafter
(including following Executive's termination of employment for any reason), by making himself
available to testify on behalf of the Company in any action, suit, or proceeding, whether civil, criminal, administrative, or investigative, and to assist the Company in any such action, suit, or
proceeding, by providing information and meeting and consulting with the Board or its representatives or counsel, or representatives or counsel to the Company, in each case, as reasonably requested by
the Company. The Company agrees to pay (or reimburse, if already paid by Executive) all expenses actually incurred in connection with Executive's cooperation and assistance including, without
limitation, reasonable fees and disbursements of counsel, if any, chosen by Executive if Executive reasonably determines in good faith, on the advice of counsel, that it is appropriate that Executive
be separately represented by his own counsel in such proceeding. 

        10.9    Survival.    The provisions of this Section 10 shall survive the termination of the Term and any
termination or expiration of this Agreement. 

        10.10    Company.    For purposes of this Section 10, references to the "Company" shall include both the
Company and each subsidiary of the Company. 

        11.    Insurance for the Company's Benefit.    The Company may at any time and for the Company's own benefit (or for
the benefit of a lender to the Company) apply for and take out life, health, accident or other insurance covering Executive, either independently or together with others, in any amount which the
Company may deem to be in its best interests. The Company shall own all rights in such insurance and proceeds thereof and Executive shall not have any right, title or interest therein. Executive shall
assist the Company at the Company's expense in obtaining and maintaining any such insurance by submitting to reasonable and customary medical examinations and preparing, signing and delivering such
applications and other documents as reasonably may be required. 

        12.    Indemnification.    During the Term of this Agreement and all periods after the expiration of this Agreement or
termination of Executive's employment for any reason, the Company shall indemnify Executive to the full extent permitted under the Company's Certificate of Incorporation or By-Laws and
pursuant to any other agreements or policies in effect from time to time; provided, however, that Executive shall at all times have at least all rights to indemnification by the Company as are
provided in the Company's Certificate of Incorporation or By-Laws or pursuant to other agreements in effect on or immediately prior to the Effective Date, and the Company shall also
advance expenses for which indemnification may be ultimately claimed as such expenses are incurred to the fullest extent permitted under applicable law, subject to any requirement that Executive
provide an undertaking to repay such advances if it is ultimately determined that Executive is not entitled to indemnification; provided, however, that any determination required to be made with
respect to whether Executive's conduct complies with the standards required to be met as a condition of indemnification or advancement of expenses under applicable law and the Company's Certificate of
Incorporation, By-Laws, or other agreement, shall be made by independent counsel mutually acceptable to Executive and the Company (except to the extent otherwise required by law). After
the Effective Date, the Company shall not amend its Certificate of Incorporation or By-Laws or any agreement in any manner which adversely affects the rights of Executive to
indemnification thereunder. Any provision contained herein notwithstanding, this Agreement shall not limit or reduce, and the Company hereby agrees to provide to Executive, any and all rights to
indemnification to the full extent permitted under applicable law. In addition, the Company will maintain directors' and officers' liability insurance in effect and covering 

17

 

acts
and omissions of Executive during the Term and for a period of six years thereafter on terms substantially no less favorable than those in effect on the Effective Date. For purposes of this
Section 12, references to the "Company" shall include both the Company and each of its subsidiaries for which Executive has acted, acts or will in the future act in any capacity. The provisions
of this Section 12 shall survive the termination of the Term and any termination or expiration of this Agreement. 

        13.    Notices.    Whenever under this Agreement it becomes necessary to give notice, such notice shall be in writing,
signed by the party or parties giving or making the same, and shall be served on the person or persons for whom it is intended or who should be advised or notified, by Federal Express or other similar
overnight service or by certified or registered mail, return receipt requested, postage prepaid and addressed to such party at the address set forth below or at such other address as may be designated
by such party by like notice: 

To
the Company: 

Scientific
Games Corporation

750 Lexington Avenue

25th Floor

New York, New York 10022

Attention: Chief Executive Officer 

With
a copy to: 

Kramer
Levin Naftalis & Frankel LLP

919 Third Avenue

New York, NY 10022

(212) 715-9100

Attention: Peter G. Smith, Esq. 

To
Executive: 

Richard
M. Weil

207 East 74th Street

New York, New York 10021 

If
the parties by mutual written agreement supply each other with telecopier numbers for the purposes of providing notice by facsimile, such notice shall also be proper notice under this Agreement and
shall be deemed given on the next business day after the date on which successful and complete transmission is confirmed by the receiving facsimile machine or otherwise confirmed in writing on behalf
of the recipient. In the case of Federal Express or other similar overnight service, such notice or advice shall be effective on the next business day after it is sent, and, in the cases of certified
or registered mail, shall be effective 5 days after deposit into the mails by delivery to the U.S. Postal Service. 

        14.    Assignability; Binding Effect.    Neither this Agreement nor the rights or obligations hereunder of the parties
hereto shall be transferable or assignable by Executive, except in accordance with the laws of descent and distribution and as specified below. The Company may assign this Agreement and the Company's
rights and obligations hereunder, and shall assign this Agreement and such rights and obligations, to any Successor (as hereinafter defined) which, by operation of law or otherwise, continues to carry
on substantially the business of the Company prior to the event of succession, and the Company shall, as a condition of the succession, require such Successor to agree in writing to assume the
Company's obligations and be bound by this Agreement. For purposes of this Agreement, "Successor" shall mean any person that succeeds to, or has the practical ability to control, the Company's
business directly or indirectly, by merger or consolidation, by purchase or ownership of voting securities of the Company or all or substantially all of its assets, or otherwise. The Company may 

18

 

also
assign this Agreement and the Company's rights and obligations hereunder to any affiliate of the Company, provided that upon any such assignment the Company shall remain liable for the
obligations to Executive hereunder. This Agreement shall be binding upon and inure to the benefit of Executive, his heirs, executors, administrators, and beneficiaries, and shall be binding upon and
inure to the benefit of the Company and its successors and assigns. 

        15.    Complete Understanding; Amendment; Waiver.    This Agreement constitutes the complete understanding between the
parties with respect to the employment of Executive and supersedes all other prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof
(including the Letter Agreement), except as provided in Section 12, and no statement, representation, warranty or covenant has been made by either party with respect thereto except as expressly
set forth herein. This Agreement shall not be modified, amended or terminated except by a written instrument signed by each of the parties. Any waiver of any term or provision hereof, or of the
application of any such term or provision to any circumstances, shall be in writing signed by the party charged with giving such waiver. Waiver by either party of any breach hereunder by the other
party shall not operate as a waiver of any other breach, whether similar to or different from the breach waived. No delay by either party in the exercise of any rights or remedies shall operate as a
waiver thereof, and no single or partial exercise by either party of any such right or remedy shall preclude other or further exercise thereof. 

        16.    Severability.    If any provision of this Agreement or the application of any such provision to any person or
circumstances shall be determined by any court of competent jurisdiction to be invalid or unenforceable to any extent, the remainder of this Agreement, or the application of such provision to such
person or circumstances other than those to which it is so determined to be invalid or unenforceable, shall not be affected thereby, and each provision hereof shall be enforced to the fullest extent
permitted by law. If any provision of this Agreement, or any part thereof, is held to be invalid or unenforceable because of the scope or duration of or the area covered by such provision, the parties
hereto agree that the court making such determination shall reduce the scope, duration and/or area of such provision (and shall substitute appropriate provisions for any such invalid or unenforceable
provisions) in order to make such provision enforceable to the fullest extent permitted by law and/or shall delete specific words and phrases, and such modified provision shall then be enforceable and
shall be enforced. The parties hereto recognize that if, in any judicial proceeding, a court shall refuse to enforce any of the separate covenants contained in this Agreement, then that invalid or
unenforceable
covenant contained in this Agreement shall be deemed eliminated from these provisions to the extent necessary to permit the remaining separate covenants to be enforced. In the event that any court
determines that the time period or the area, or both, are unreasonable and that any of the covenants is to that extent invalid or unenforceable, the parties hereto agree that such covenants will
remain in full force and effect, first, for the greatest time period, and second, in the greatest geographical area that would not render them unenforceable. To the extent that a court of competent
jurisdiction determines that Executive willfully and materially breached Section 10.1(a) (other than the first sentence thereof), 10.1(b), 10.2 (other than the first and penultimate sentences
thereof), 10.3, 10.4, or 10.8, the Company's obligations to make payments hereunder shall immediately be limited to the amounts, if any, remaining to be paid pursuant to Section 7(b) to the
extent not theretofore paid, provided that the Company's obligations to make such greater payments shall immediately be reinstated in the event that the determination of such court is overturned or
reversed by any higher court. 

        17.    Survivability.    The provisions of this Agreement which by their terms call for performance subsequent to
termination of Executive's employment hereunder, or of this Agreement, shall so survive such termination, whether or not such provisions expressly state that they shall so survive. 

19

 

        18.    Governing Law; Arbitration; Expenses; Interest.    

        18.1    Governing Law.    This Agreement shall be governed by and construed in accordance with the laws of the State
of New York applicable to agreements made and to be wholly performed within that State, without regard to its conflict of laws provisions. 

        18.2    Arbitration.    Any dispute or controversy arising under or in connection with this Agreement shall be settled
exclusively by arbitration in New York, New York by three arbitrators in accordance with the rules of the American Arbitration Association in effect at the time of submission to arbitration; provided,
however, that the Company shall be entitled to commence an action in any court of competent jurisdiction to enforce Section 10, in part or in its
entirety. Judgment may be entered on the arbitrators' award in any court having jurisdiction. For purposes of entering such judgment or seeking
enforcement of Section 10, the Company and Executive hereby consent to the jurisdiction of any or all of the following courts: (i) the United States District Court for the Southern
District of New York; (ii) any of the courts of the State of New York or the State of Delaware; or (iii) any other court having jurisdiction. The Company and Executive further agree that
any service of process or notice requirements in any such proceedings shall be satisfied if the rules of such court relating thereto have been substantially satisfied. The Company and Executive hereby
waive, to the fullest extent permitted by applicable law, any objection which either may now or hereafter have to such jurisdiction and any defense of inconvenient forum. The Company and Executive
hereby agree that a judgment upon an award rendered by the arbitrators may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Notwithstanding any
provision in this Section 18, Executive shall be entitled to seek in any court of competent jurisdiction specific performance of Executive's right, if any, to receive benefits during the
pendency of any dispute or controversy arising under or in connection
with this Agreement, which, to the extent such benefits are provided by the Company, shall be credited against the total amounts otherwise finally determined to be owed to Executive pursuant to this
Agreement. 

        18.3    Reimbursement of Expenses in Enforcing Rights.    If Executive seeks to interpret this Agreement or enforce
rights pursuant to this Agreement after such interpretation or such rights are disputed by the Company and Executive's position with respect to such interpretation or enforcement of such rights
prevails, the Company shall pay on behalf of Executive (or, if already paid by Executive, reimburse to Executive) all reasonable costs and expenses (including, without limitation, reasonable fees and
disbursements of counsel) actually incurred by Executive in asserting such prevailing position. 

        18.4    Interest on Unpaid Amounts.    Any amounts that have become payable pursuant to the terms of this Agreement or
any decision by arbitrators or judgment by a court of law pursuant to this Agreement but which are not timely paid shall bear interest at the prime rate in effect at the time such payment first
becomes payable, as quoted by the Company's principal bank. 

        19.    Reimbursement of Expenses of Executive in Negotiating Agreement.    All reasonable costs and expenses
(including, without limitation, reasonable fees and disbursements of counsel) incurred by Executive in connection with the negotiation, preparation, execution, or delivery of this Agreement shall be
paid on behalf of Executive (or, if already paid by Executive, reimbursed to Executive) promptly by the Company. 

        20.    Titles and Captions.    All paragraph titles or captions in this Agreement are for convenience only and in no
way define, limit, extend or describe the scope or intent of any provision hereof. 

20

 

        IN WITNESS WHEREOF, each of the parties hereto has duly executed this Agreement on November 12, 2003, to be deemed effective as of
the date first above written. 

	 	SCIENTIFIC GAMES CORPORATION
	

 	

By:	

 Name: A. Lorne Weil

Title: Chairman and Chief Executive Officer
	

 	

 	

 Richard M. Weil

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