Document:

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

	
1. EMPLOYER:
    	
MTR   Gaming Group, Inc. (the “MTR” or the “Company”), having an   address of State Route 2 South, Chester, W.V. 26034 and Mountaineer Park Inc.   (“MPI”), having an address of State Route 2 South, P.O. Box 358,   Chester, W.V. 26034, which is a wholly owned subsidiary of MTR. 
    
	
 
    	
 
    
	
2. EMPLOYEE:
    	
Joseph   L. Billhimer, Jr. (the “Executive”) 
    
	
 
    	
 
    
	
3. PERIOD OF EMPLOYMENT:
    	
The   Company hereby agrees to employ the Executive, and the Executive hereby   agrees to work in the employ of the Company, subject to the terms and   conditions of this Agreement, for the period commencing on April 4, 2011   (the “Employment Date”) and ending on the second anniversary of the   Employment Date (such period, the “Agreement Term”); provided,   however, such Agreement Term shall automatically be extended on the last day   thereof for successive one (1) year periods unless either party provides   to the other party a written notice of non-renewal (a “Non-Renewal Notice”)   at least 90 days prior to the expiration date of the then applicable   Agreement Term.  The period of   Executive’s employment under this Agreement shall be hereinafter referred to   as the “Period of Employment.”
    
	
 
    	
 
    
	
4. DUTIES:
    	
Effective   as of the Employment Date, Executive shall serve, pursuant to the terms of   this Agreement, as MTR’s Senior Vice President for Operations and   Development, and concurrently serve as MPI’s President and General Manager,   and in such other positions, consistent with Executive’s role, which MTR may   appoint to Executive during the Period of Employment.  Executive shall devote all of his business   time, energy and skill to the business and affairs of the MTR and its   affiliates and to the promotion of their interests.  Executive shall report directly to and   shall be subject to the direction of Chief Executive Officer, as may be   determined from time to time by MTR.  
    
	
 
    	
 
    
	
5. COMPENSATION &   BENEFITS:
    	
 
    
	
 
    	
 
    
	
(a)
    	
Salary: During the Period of   Employment, the Executive shall be paid an annual base salary of $300,000, or   such greater amount as may be approved from time to time by the Compensation   Committee (the “Compensation Committee”) of the Board of Directors of   MTR (the “Board”) (the “Base Salary”).  The Base Salary shall be paid in accordance   with the normal payroll
    

 

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practices   of the Company.
    
	
 
    	
 
    
	
(b)
    	
Annual Incentive Bonus:    During the Period of   Employment, Executive shall be eligible to participate in the Company’s   annual incentive plan, as may be in effect from time to   time, in the sole discretion of the Compensation Committee (“Incentive   Plan”).  Executive’s target bonus   under the Incentive Plan shall be 40% of Base Salary (or such amount as may   be determined by the Compensation Committee, in its discretion); actual   awards may be earned above or below the targeted amount based on performance   objectives, as may be established by the Compensation Committee, in its   discretion.
    
	
 
    	
 
    
	
(c)
    	
Long Term Incentive Program: During the Period of Employment, Executive shall be   eligible to participate in the Company’s Long Term Incentive Program, as may   be in effect from time to time, and subject to the terms and conditions   determined by the Compensation Committee, in its sole discretion.
    
	
 
    	
 
    
	
(d)
    	
Benefits: During the Period of   Employment, Executive shall be eligible to participate in employee benefit   plans made available by the Company from time to time to the Company’s   executives, generally, as the Compensation Committee may periodically   approve, in its sole discretion.
    
	
 
    	
 
    
	
(e)
    	
Life Insurance: During the Period of   Employment, the Company will maintain, at its sole cost and expense, a term   life insurance policy for Executive with a face value equal to Executive’s   Base Salary. Executive shall have the right to name the beneficiary of such   term life insurance policy. Notwithstanding the foregoing, the Company’s   obligation to pay premiums for such term life insurance policy shall be   limited to the rate charged for preferred non-smokers.
    
	
 
    	
 
    
	
(f)
    	
Automobile Allowance: During the Period of   Employment, Executive shall be entitled to $800.00 per month toward the lease   or purchase, insurance and maintenance of an automobile.
    
	
 
    	
 
    
	
(g)
    	
Vacation: During the Period of   Employment, Executive shall be entitled to four (4) weeks of paid   vacation per year, subject to the terms of the Company’s vacation policy as   in effect from time to time.
    
	
 
    	
 
    
	
(h)
    	
Other Expenses: During the Period of   Employment, the Company shall (i) reimburse Executive for reasonable   travel and other expenses incident to the rendering of services by Executive   hereunder, in accordance with Company policies, (ii) pay for
    

 

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expenses   associated with Executive’s gaming licensure in each state in which Executive   is directed by the Company or any of its affiliates to become licensed, and   (iii) provide Executive a Company cellular telephone, or, at the   Company’s election, reimburse Executive for the cost of a cellular phone and   reasonable monthly service charges maintained by Executive, subject to   documentation in accordance with the Company’s policy, as in effect from time   to time. All payments and expense reimbursements under this   Section 5(h) shall be subject to Executive’s submission of   appropriate vouchers, bills and receipts in accordance with the Company’s policies.
    
	
 
    	
 
    
	
(i)
    	
Working Facilities: During the Period of   Employment, the Company shall provide Executive with an office, secretarial,   administrative and other assistance, and such other facilities and services   as shall be suitable to his position and appropriate for the performance of   his duties.
    
	
 
    	
 
    
	
(j)
    	
Housing and Relocations Expenses: Executive will be reimbursed for reasonable and customary moving   expenses, in accord with the policies of the Company. To facilitate   Executive’s transition and relocation, Executive will be permitted to stay at   Mountaineer’s Hotel for up to sixty (60) days. Additionally, Executive shall   be provided with a housing allowance of $3,000.00 per month for a total of   six (6) months from the date of the execution of this agreement.
    
	
 
    	
 
    
	
6. TERMINATION:
    	
Executive’s   employment under this Agreement may be terminated by either party at any time   and for any reason, subject to the consequences of termination as provided in   this Section 6. Upon Executive’s termination of employment for any   reason, the Period of Employment shall terminate and Executive shall be paid   the Accrued Rights. For purposes of   this Agreement, “Accrued Rights” shall include: (i) Executive’s   earned but unpaid Base Salary as of the date of his termination of employment   and his accrued and unused vacation pursuant to   Section 5(g) hereof, which shall be paid within thirty (30) days of   termination; (ii) reimbursement   for reasonable business expenses and authorized travel expenses incurred but   still outstanding under Section 5(h) hereof, which shall be paid   within thirty (30) days of termination; (iii) any bonus under the Incentive Plan earned and   approved to be paid by the Compensation Committee with respect to completed   fiscal periods that precede Executive’s date of termination but have not been   paid through the date of termination, which shall be paid within thirty (30)   days of the Compensation Committee’s approval of such payment, but in no   event later than March 15 following the calendar year to which the bonus   relates, if so approved; and (iv)
    

 

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all   payments, rights and benefits due as of the date of termination under the   terms of the Company’s or MTR’s (as applicable) employee and fringe benefit   plans and programs in which Executive participated during the Period of   Employment, the time and manner of payment of which shall be determined   according to the terms and conditions of the applicable plans and programs.
    
	
 
    	
 
    
	
(a)
    	
Termination Without Cause:  Subject to Section 6(f) hereof,   in the event that the Company terminates Executive’s employment hereunder   without Cause during the Agreement Term (which, for the avoidance of doubt,   shall not include Executive’s death or Disability (as defined below)), then,   in addition to the Accrued Rights, Executive shall be entitled to receive the   following severance payments and benefits (the “Severance Payments”):

 

(i) continued   payment of the Base Salary for a period of 12 (twelve) months following the   date of Executive’s termination of employment (the “Severance Period”),   payable in accordance with the Company’s normal payroll practice;

 

(ii) a bonus amount under the Incentive Plan,   based on achievement of the applicable performance criteria for the Incentive   Plan year in which Executive terminates employment, as determined at the   Compensation Committee’s discretion, and adjusted on a pro rata basis based   on the number of days Executive was actually employed during such year;   provided, however, that Executive shall only be entitled to such payment if   he is employed with the Company for a period of at least six (6) months   during such Incentive Plan year.  Such   amount shall be paid in a lump sum within thirty (30) days of the   Compensation Committee’s approval of such payment, but in no event later   than March 15 following the calendar year to which the bonus relates, if   so approved; and

 

(iii) continued   medical coverage under the Company’s group health plan for the Severance   Period on the same terms and conditions that applied to Executive at the time   of his termination of employment (including, without limitation, employee   contribution rates, if applicable, and coverage); following the Severance   Period, Executive shall be permitted to elect COBRA continuation coverage in   accordance with applicable law.

 

The   Severance Payments will begin on the 60th day following Executive’s   termination of employment, with the first such payment to include any amounts   attributable to payroll intervals occurring prior to such date, provided,   however, that, to the extent that the payments are exempt from   Section 409A of the Internal 
    

 

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Revenue   Code of 1986, as amended (the “Code”), such exempt payments shall be   made beginning with the first payroll date following the effectiveness of the   general release of claims set forth in Section 6(f) hereof.  
    
	
 
    	
 
    
	
(b)
    	
Termination For Cause; Termination by Executive: In the event   that (i) the Company terminates Executive’s employment hereunder for   Cause, or (ii) the Executive terminates his employment hereunder (except   for Good Reason as provided in Section 6(e) hereof), Executive   shall not be entitled to receive any payments or benefits under this   Agreement other than the Accrued Rights. “Cause” shall mean   (i) Executive’s conviction for a felony, crimen falsi or serious   misdemeanor, (ii) Executive’s embezzlement or misappropriation of funds   or property of the Company or any of its affiliates, (iii) Executive’s   consistent refusal to substantially perform, or willful misconduct in the   substantial performance of, his duties and obligations hereunder;   (iv) Executive’s engaging in activity that the Chief Executive Officer   of MTR determines in his reasonable judgment would result in the suspension   or revocation of any video lottery, pari-mutuel, or other gaming license or   permit held by MTR or any of its subsidiaries; (v) a determination by   any state gaming regulatory agency that Executive is not suitable to hold his   position or otherwise to participate in a gaming enterprise in the state in   question; or (vi) Executive’s material violation of the provisions of   Section 11(g) hereof.
    
	
 
    	
 
    
	
(c)
    	
Death or Disability: In the event of   Executive’s death or Disability, the Period of Employment shall terminate and   Executive shall not be entitled to receive any payments or benefits under   this Agreement other than the Accrued Rights. For purposes of this Agreement,   “Disability” shall mean the inability of Executive by reason of   physical or mental disability to continue the proper performance of his duties   hereunder for a period of 180 consecutive days. Notwithstanding the   foregoing, in the event of Executive’s death, his estate or beneficiaries, as   applicable, shall be entitled to receive the proceeds of the life insurance   policy referred to in Section 5(e) hereof.
    
	
 
    	
 
    
	
(d)
    	
Expiration of Period of Employment. Subject to   Section 6(f) hereof, in the event that Executive’s employment   terminates upon expiration of the Agreement Term (including any renewal   thereof) by reason of the Company’s provision of a Non-Renewal Notice, then   Executive shall receive the Accrued Rights and the Severance Payments set   forth in Section 6(a) hereof.
    

 

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(e)
    	
Change in Control:  Notwithstanding   any other provision of this Agreement to the contrary, and subject to Section 6(f) hereof,   if a Change in Control shall occur during the Period of Employment, and,   prior to the first anniversary of the consummation date of the Change in   Control,  either (i) the Company   terminates Executive’s employment without Cause or (ii) Executive   terminates his employment for Good Reason, then the Executive shall receive   the Accrued Rights and the Severance Payments set forth in Section 6(a) hereof,   except that the Severance Period shall be eighteen (18) months.  For the avoidance of doubt, in the event of   such a Change in Control, the Agreement Term shall continue in effect at   least until the first anniversary of the Change in Control.

 

“Change   in Control” shall mean the occurrence of either of the following:

 

(i) the   acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or   14(d)(2) of the Securities Exchange Act of 1934, as amended) (the “Act”)   of beneficial ownership (within the meaning of Rule 13d-3 of the Act) of   more than 50% of the (A) then outstanding voting stock of MTR; or (B) the   combined voting power of the then outstanding securities of MTR entitled to   vote;

 

(ii)    an ownership change in which the shareholders of MTR before such ownership   change do not retain, directly or indirectly, at least a majority of the   beneficial or legal interest in the voting stock of MTR after such   transaction, or in which MTR is not the surviving company;

 

(iii) the   direct or indirect sale or exchange by the beneficial owners (directly or   indirectly) of MTR of all or substantially all of the assets of MTR; or

 

(iv) during   any twenty-four (24) month period, individuals who, as of the beginning of   such period, constitute the Board (the “Incumbent Directors”) cease   for any reason to constitute at least a majority of the Board, provided that   any person becoming a director subsequent to the beginning of such period   whose election or nomination for election was approved by a vote of at least   a majority of the Incumbent Directors then on the Board (either by a specific   vote or by approval of the proxy statement of MTR in which such person is   named as a nominee for director, without written objection to such   nomination) shall be an Incumbent Director; provided, however, that no   individual initially elected or nominated as a director of MTR as a result of   an actual or threatened election contest with respect to directors or as a   result of
    

 

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any   other actual or threatened solicitation of proxies by or on behalf of any   person other than the Board shall be deemed to be an Incumbent Director.

 

“Good   Reason” shall mean the occurrence of either of the following events   without Executive’s consent:  (i) a   material diminution in Executive’s duties as contemplated herein, (ii) a   material reduction in Executive’s Base Salary or (iii) the relocation by   the Company of Executive’s place of employment to more than fifty (50)   miles from the Company’s offices in Chester, WV and/or Wexford, PA; provided,   however, that Executive shall give written notice to the Company of   the applicable event within ninety (90) days of the occurrence thereof, and   the Company shall have a period of thirty (30) business days after receipt of   such notice to cure the event, and in the event of cure, (or the commencement   of steps reasonably designed to result in prompt cure), Executive’s assertion   of Good Reason shall be null and void.    
    
	
 
    	
 
    
	
(f)
    	
Release;   Cessation of Severance Payments:  Executive   hereby agrees that Executive shall be entitled to the Severance Payments and   other benefits provided for in Sections 6(a), 6(d) and 6(e) hereof   (other than the Accrued Rights) (i) only if Executive timely executes   and delivers to the Company a general release of claims specified by the   Company and substantially in the form attached hereto as Exhibit A,   and the general release of claims has become effective and irrevocable in   accordance with its terms, and (ii) only so long as Executive does not   breach any of the restrictive covenants in Section 7 hereof.
    
	
 
    	
 
    
	
7. RESTRICTIVE COVENANTS:
    	
 
    
	
 
    	
 
    
	
(a)
    	
Intellectual Property:  All programs, ideas, strategies approaches,   practices or inventions created, developed, obtained or conceived of by   Executive during the term hereof by reason of his engagement by the Company,   MPI or their affiliates (collectively, the “Protected Parties”), shall   be owned by and belong exclusively to the Protected Parties, provided that   they are related in any manner to the Protected Parties’ business.  Executive shall (i) promptly disclose   all such programs, ideas, strategies, approaches, practices, inventions or   business opportunities to the Protected Parties, and (ii) execute and   deliver to the applicable Protected Party, without additional compensation,   such instruments as the Protected Party may require from time to time to   evidence its ownership of any such items.
    
	
 
    	
 
    
	
(b)
    	
Confidentiality: Executive   agrees that during the Period of 
    

 

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Employment   and at all times thereafter, he will not, directly or indirectly,   (i) disclose to any other person or entity, either during or after his   employment by the Company, or (ii) use, except during his employment by   the Company in the business and for the benefit of the Protected Parties, any   confidential information, proprietary information, competitive information   and/or trade secrets (collectively, “Confidential Material”) relating   to the business practices of the Protected Parties acquired by Executive   during his employment by the Company, provided, however, that such   Confidential Material shall not include any information that has become   generally available to the public other than as a result of a disclosure by   Executive. Nothing herein shall preclude Executive from disclosing   Confidential Material to the extent such disclosure is required by law or   court or administrative order, in which case Executive shall notify the   Company in advance of any such disclosure (or if advance notice is not   practicable, as soon as possible following such disclosure). Upon termination   of his employment with the Company for any reason, Executive agrees to return   to the Company all tangible manifestations of Confidential Materials and all   copies thereof.
    
	
 
    	
 
    
	
(c)
    	
Non-Competition:  Executive agrees that   during the Restricted Period (as defined below), Executive will not become a   stockholder, member, director, officer, employee or agent of or consultant to   any corporation, partnership or other entity that is engaged in a Competing   Business within the Restricted Area (as each term is defined below), or   otherwise engage, directly or indirectly, in a Competing Business within the   Restricted Area.  “Competing   Business” shall mean the business of competitive gaming (including,   without limitation, casino operation and horseracing).  “Restricted Area” shall mean one   hundred (100) miles from any location in which any Protected Party does   business or in which Executive has knowledge that any of the Protected   Parties contemplates doing business.    The foregoing shall not preclude the ownership by Executive (solely as   an investor and without any other participation in or contact with the   management of the business) of less than five percent (5%) of the   outstanding shares of stock of any corporation engaged in any such business,   which shares are regularly traded on a national securities exchange or in an   over-the-counter market.

 

“Restricted   Period” shall mean the Period of Employment and (i) if Executive’s   employment terminates under the circumstances described in Section 6(a),   (d), or (e) hereof, the applicable Severance Period provided for under   such sections, or (ii) if Executive’s employment terminates under any   other circumstances (including, without limitation, by the Company for Cause,   or by
    

 

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Executive   without Good Reason), the ninety (90) day period immediately following the   Period of Employment.  
    
	
 
    	
 
    
	
(d)
    	
Non-Solicitation:   Executive agrees that during the Period of Employment and for the one   (1) year period immediately following Executive’s termination of   employment from the Company for any reason, Executive shall not, directly or   indirectly, without the express written consent of the applicable Protected   Party, solicit any person who is or shall be in the employ or service of such   Protected Party to leave such employ or service for any other employment   opportunity.
    
	
 
    	
 
    
	
(e)
    	
Acknowledgement: Executive   acknowledges and agrees that (A) the agreements and covenants contained   in this Section 7 are (i) reasonable and valid in geographical and temporal   scope and in all other respects and (ii) essential to protect the value   of the business and assets of the Protected Parties, and (B) by his   employment with the Company, Executive has obtained and will obtain   knowledge, contacts, know-how, training, and experience, and there is a   substantial probability that such knowledge, contacts, know-how, training,   and experience could be used to the substantial advantage of a competitor of   the Protected Parties and to the substantial detriment of the Protected   Parties.
    
	
 
    	
 
    
	
8. TAXES:
    	
The   Company and its affiliates may withhold from any payments made under this   Agreement all applicable taxes, including but not limited to income,   employment, and social insurance taxes. Executive acknowledges and represents   that the Company has not provided any tax advice to him in connection with   this Agreement and that he has been advised by the Company to seek tax advice   from his own tax advisors regarding this agreement and payments that may be   made to Executive pursuant to this agreement, including specifically, the   application of the provisions of Section 409A of the Code to such   payments.
    
	
 
    	
 
    
	
9. APPLICATION   OF SECTION 409A OF THE CODE:
    	
To   the extent applicable, it is intended that this Agreement comply with, or   otherwise be exempt from, the provisions of Section 409A of the Code, so   as to prevent inclusion in gross income of any amounts payable or benefits   provided hereunder in a taxable year that is prior to the taxable year or   years in which such amounts or benefits would otherwise actually be   distributed, provided or otherwise made available to Executive. This   Agreement shall be construed, administered, and governed in a manner   consistent with this intent. If and to the extent that any payment or benefit   under this Agreement is determined by the Company to constitute   “non-qualified deferred compensation” subject to Section 409A of the   Code and is payable to Executive by reason of Executive’s
    

 

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termination   of employment, then such payment or benefit shall be made or provided to   Executive only upon a “separation from service” as defined for purposes of   Section 409A of the Code. In no event will the reimbursements or in-kind   benefits to be provided pursuant to this Agreement in one taxable year affect   the amount of reimbursements or in-kind benefits to be provided in any other   taxable year, nor Executive’s right to reimbursement or in-kind benefits be   subject to liquidation or exchange for another benefit. Each payment under   this Agreement will be considered a “separate payment” and not one of a   series of payments for purposes of Section 409A of the Code.   Notwithstanding any provision of this Agreement to the contrary, if Executive   is a “specified employee” within the meaning of Section 409A(a)(2)(B) of   the Code (as determined by the Company), any payment (or portion thereof)   otherwise due Executive during the first six months following Executive’s   termination of employment that is not exempt from Section 409A of the   Code either as separation pay or as a short term deferral under applicable   Treasury regulations will be held until and paid on the day following the   expiration of such six-month period. In no event shall the Company be liable   for any additional tax, interest or penalties that may be imposed on   Executive under Section 409A of the Code or any damages for failing to   comply with Section 409A of the Code.
    
	
 
    	
 
    
	
10. INDEMNIFICATION
    	
The   Company shall indemnify and hold harmless Executive to the fullest extent   permitted by the Company’s by-laws and certificate of incorporation for any   action or inaction of the Executive while serving as an officer or director   of the Company.
    
	
 
    	
 
    
	
11. GENERAL:
    	
 
    
	
 
    	
 
    
	
(a)
    	
Parties In Interest: This Agreement shall be   binding upon and inure to the benefit of Executive and his heirs and   beneficiaries, and it shall be binding upon and inure to the benefit of the   Company and its successors and assigns.
    
	
 
    	
 
    
	
(b)
    	
Arbitration; Injunctive Relief: Any disputes   arising under the terms of this Agreement shall be settled by binding   arbitration between the parties in the Wexford, Pennsylvania area in a   proceeding held under the rules of the American Arbitration Association.   The arbitrators shall have no authority to grant either party any   consequential, incidental, punitive or special damages. Notwithstanding the   foregoing provisions of this Section 11(b), recognizing the irreparable   damage will result to the Protected Parties in the event of the breach or   threatened breach of any of the covenants in Section 7 hereof, and that   the Protected Parties’ remedies at law for any such breach or threatened   breach will be
    

 

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inadequate,   the Protected Parties, in addition to such other remedies which may be   available to it (including, without, limitation immediate cessation of the   Severance Payments), shall be entitled to an injunction, including a   mandatory injunction, to be issued by any court of competent jurisdiction   ordering compliance with this Agreement or enjoining and restraining   Executive from the continuation of such breach.
    
	
 
    	
 
    
	
(c)
    	
Entire Agreement (Merger & Integration):  This Agreement supersedes any and all other   agreements, either oral or in writing, between the parties hereto with   respect to the employment of Executive by the Company or MTR and contains all   of the covenants and agreements between the parties with respect to such   employment in any manner whatsoever.    Any modification of this Agreement will be effective only if it is in   writing signed by the parties.
    
	
 
    	
 
    
	
(d)
    	
Governing Law:  Pennsylvania without giving effect to the   choice of law or conflicts of law rules and laws of such jurisdiction.
    
	
 
    	
 
    
	
(e)
    	
Severability:  In the event that any term or condition   contained in this Agreement shall for any reason be held by a court of   competent jurisdiction to be invalid, illegal or unenforceable in any   respect, such invalidity, illegality or unenforceability shall not affect any   other term or condition of this Agreement, but this Agreement shall be   construed as if such invalid or illegal or unenforceable term or condition   had never been contained herein.
    
	
 
    	
 
    
	
(f)
    	
Counterparts:  This Agreement may be executed in two or   more counterparts, each of which shall be deemed to be an original but all of   which together shall constitute one and the same instrument.  The execution of this Agreement may be by   actual or facsimile signature.
    
	
 
    	
 
    
	
(g)
    	
Code   of Ethics:  Executive   acknowledges receipt of and agrees to comply with (i) MTR Gaming   Group, Inc.’s Code of Ethics and Business Conduct, as well as the   Conflicts of Interest Policies, copies of which are attached hereto as Exhibit B   and incorporated by reference.    Additionally, Executive acknowledges that MTR’s securities are   publicly traded and agrees that due to his position he may be in possession   of material non-public information.    Accordingly, Executive warrants that he will neither (i) trade in   MTR’s securities nor (ii) “tip” another person or entity, in each case,   while Executive is in possession of material non-public information about MTR   or its affiliates.
    

 

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(h)
    	
Notice:  Any notice required or   permitted to be given pursuant to this Agreement shall be sufficient only if   in writing and sent by certified or registered mail, return receipt   requested, (i) if the notice is to the Company, to the Chief Executive   Officer of MTR at MTR’s Corporate office, with copies to the General Counsel   and (ii) if the notice is to Executive, at his address on record with   the Company.  Notice shall also be   sufficient if delivered by hand to the persons specified in the preceding   sentence, as applicable.
    
	
 
    	
 
    
	
(i)
    	
Board   Approval:  This   Agreement shall neither be valid nor binding until such time that it is   approved of and/or ratified by the Board.
    
	
 
    	
 
    
	
(j)
    	
Survival:  For the avoidance of doubt, neither the   termination of the Agreement Term nor the termination of the Period of   Employment shall relieve the parties of those obligations that are intended   to survive any such termination.
    

 

SIGNATURE PAGE FOLLOWS.

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of this 30th day of March, 2011.

 

	
 
    	
ACCEPTED   AND ACKNOWLEDGED BY
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MOUNTAINEER   PARK, INC. AND MTR GAMING GROUP, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/S/   JEFFREY J. DAHL
    
	
 
    	
Name:   
    	
Jeffrey   J. Dahl
    
	
 
    	
 
    	
President   and Chief Executive Officer of MTR Gaming Group, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Accepted   by: 
    	
/S/   JOSEPH L. BILLHIMER
    
	
 
    	
 
    	
Joseph   L. Billhimer
    
	
 
    	
 
    	
Executive
    
				

 

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Exhibit A

 

GENERAL RELEASE OF CLAIMS

 

This general release of claims (this “General Release”) is entered into by and between Joseph L. Billhimer (“Executive”) and MTR Gaming Group, Inc.(the “Company”), as of the date hereof, pursuant to the terms of the Employment Agreement dated as of March 30, 2011 by and between Executive and the Company (the “Employment Agreement”).

 

1.             Release.  In exchange for and in consideration of the severance payments, benefits and other payments and rights of Executive described in the Employment Agreement (the “Severance Payments and Benefits”) and for other good and valuable consideration, Executive, on behalf of himself, his agents, representatives, administrators, receivers, trustees, estates, spouse, heirs, devisees, assignees, transferees, legal representatives and attorneys, past or present (as the case may be), hereby irrevocably and unconditionally releases, discharges, and acquits all of the Released Parties (as defined below) from any and all claims, promises, demands, liabilities, contracts, debts, losses, damages, attorneys’ fees and causes of action of every kind and nature, known and unknown, which Executive may have against them up to the Effective Date (as defined below) of this General Release (the “Released Claims”), including but not limited to causes of action, claims or rights arising out of, or which might be considered to arise out of or to be connected in any way with: (i) Executive’s employment with the Company or the termination thereof, (ii) any treatment of Executive by any of the Released Parties, which shall include, without limitation, any treatment or decisions with respect to hiring, placement, promotion, work hours, discipline, transfer, termination, compensation, performance review or training; (iii) any damages or injury that Executive may have suffered, including without limitation, emotional or physical injury, or compensatory damages; (iv) employment discrimination, which shall include, without limitation, any individual or class claims of discrimination on the basis of age, disability, sex, race, religion, national origin, citizenship status, marital status, sexual preference, or any other basis whatsoever; and (v) all such other claims that Executive could asset against any, some, or all of the Released Parties in any forum, accrued or unaccrued, liquidated or contingent, direct or indirect.  This release shall be construed as broadly as possible and, without limiting the foregoing, the Released Claims shall include any and all claims that Executive has alleged or could have alleged, whether known or unknown, accrued or unaccrued, based on acts, omissions, transactions or occurrences which occurred up to the Effective Date against any Released Party for violation(s) of any of the following, in each case, as amended: the National Labor Relations Act; Title VII of the Civil Rights Act of 1964; the Age Discrimination in Employment Act; the Older Workers Benefit Protection Act of 1990; the Civil Rights Act of 1991; Sections 1981-1988 of Title 42 of the United States Code; the Equal Pay Act; the Employee Retirement Income Security Act of 1974; the Immigration Reform Control Act; the Americans with Disabilities Act of 1990; the Fair Labor Standards Act; the Occupational Safety and Health Act; the Sarbanes-Oxley Act of 2002; any other federal, state, or local law or ordinance; any public policy, whistleblower, contract, tort, or common law; and any demand for costs or litigation expenses, including but not limited to attorneys’ fees.  In no event, however, shall any claims, causes of action, suits, demands or other obligations or liabilities be released pursuant to the foregoing if and to the extent they relate to (a) the Severance Payments and Benefits which Executive is entitled to receive pursuant to the provisions of the Employment

 

 

Billhimer Release- Reviewed 30 March, 2011 Initials                  

 

 

Agreement; (b) any rights or benefits which Executive is entitled to under the Company’s option, restricted stock or other equity incentive plans; (c) any vested benefits which Executive is entitled to under the Company’s pension, savings, retirement, 401K or other plans; or (d) any rights that Executive has or may have to be indemnified by the Company pursuant to any contract, statute, or common law principle including, without limitation, the Company’s Certificate of Incorporation, By-laws and directors and officers liability insurance policies.

 

2.  Released Parties.  The term “Released Parties” or “Released Party” as used herein shall mean and include: (i) the Company; (ii) the Company’s former, current and future parents, subsidiaries, affiliates, shareholders and lenders; (iii) any predecessor or successor of any person listed in clauses (i) an (ii); and (iv) each former, current, and future officer, director, agent, representative, employee, servant, owner, shareholder, partner, joint venturer, attorney, employee benefit plan, employee benefit plan administrator, insurer, administrator, and fiduciary of any of the persons listed in clauses (i) through (iii), and any other person acting by, through, under, or in concert with any of the persons or entities listed herein.

 

3.  OWBPA and ADEA Release.  Pursuant to the Older Workers Benefit Protection Act of 1990, Executive understands and acknowledges that by executing this General Release and releasing all claims against any of the Released Parties, he has waived any and all rights or claims that he has or could have against any Released Party under the Age Discrimination in Employment Act (“ADEA”), which includes any claim that any Released Party discriminated against Executive on account of his age.  Executive also acknowledges the following:

 

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

 

(b) Executive has had the opportunity to consult with his own attorney concerning this General Release;

 

(c) This General Release does not include claims arising from any act, omission, transaction or occurrence which happens on or after the Effective Date of this General Release, provided, however, that any claims arising after the Effective Date of this General Release from the then-present effect of acts or conduct occurring before the Effective Date of this General Release shall be deemed released under this General Release; and

 

(d) The Company has provided Executive the opportunity to review and consider this General Release for 21 days or, if Executive’s termination of employment is “in connection with an exit incentive or other employment termination program” (as such phrase is defined in ADEA), 45 days from the date Executive receives this General Release (the “Review Period”).  At Executive’s option and sole discretion, Executive may waive the Review Period and execute this General Release before the expiration of 21 or 45 days, as applicable.  In electing to waive the Review Period, Executive acknowledges and admits that he was given a reasonable period of time within which to consider this General Release and his waiver is made freely and voluntarily, without duress or any coercion by any other person.

 

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4.  ADEA Revocation Period. Executive may revoke this General Release within a period of seven days after execution of this General Release. Executive agrees that any such revocation is not effective unless it is made in writing and delivered to the attention of the Secretary of the Company by the end of the seventh calendar day. Under any such valid revocation, Executive shall not be entitled to any Severance Payment and Benefits under the Employment Agreement. This General Release becomes effective on the eighth calendar day after it is executed by both parties (the “Effective Date”).

 

5.  Representations by Executive.  Executive confirms that no claim, charge, or complaint against any of the Released Parties, brought by him, exists before any federal, state, or local court or administrative agency.  Executive represents and warrants that he has no knowledge of any improper or illegal actions or omissions by the Company, nor does he know of any basis on which any third party or governmental entity could reasonably assert such a claim. This expressly includes any and all conduct that potentially could give rise to claims under the Sarbanes-Oxley Act of 2002 (Public Law 107-204).

 

6.  No Right to File Claims.  Executive agrees that he will not, unless otherwise prohibited by law, at any time hereafter, voluntarily participate in as a party, or permit to be filed by any other person on his behalf or as a member of any alleged class of persons, any action or proceeding of any kind, against the Company, or its past, present, or future parents, subsidiaries, divisions, affiliates, successors and assigns and any of their past, present or future directors, officers, agents, trustees, administrators, attorneys, employees or assigns (whether acting as agents for the Company or in their individual capacities), with respect to any Released Claims; in addition, Executive agrees to have himself removed from any such action or proceeding with respect to which he has involuntarily become a party.  Executive further agrees that he will not seek or accept any award or settlement from any source or proceeding with respect to any claim or right covered by this General Release and that this General Release shall act as a bar to recovery in any such proceedings.

 

7.  No Admission of Liability.  Executive agrees that neither this General Release nor the furnishing of the consideration for the general release set forth in this General Release shall be deemed or construed at any time for any purpose as an admission by the Released Parties of any liability or unlawful conduct of any kind.  Executive further acknowledges and agrees that the consideration provided for herein is adequate consideration for Executive’s obligations under this General Release.

 

8.  Governing Law.  This General Release shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania without regard to its conflict of laws provisions.  If any provision of the General Release other than the general release set forth above, is declared legally or factually invalid or unenforceable by any court of competent jurisdiction and if such provision cannot be modified to be enforceable to any extent or in any application, then such provision immediately shall become null and void, leaving the remainder of this General Release in full force and affect.

 

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9.  Prior Agreements.  This General Release sets forth the entire agreement between Executive and the Released Parties with respect to the matters set forth herein, and supersedes any and all prior agreements or understandings, whether written or oral, between the parties with respect to the matters set forth herein, except as otherwise specified in this General Release.  This General Release shall not affect the continuing obligations of Executive under the Employment Agreement.  Executive acknowledges that he has not relied on any representations, promises, or agreements of any kind made to him in connection with his decision to sign this General Release, except for those set forth in this General Release.

 

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

 

11.  Counterparts; Execution Signatures.  This General Release may be executed in any number of counterparts by the parties hereto and in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement.

 

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

 

(SIGNATURE PAGE TO FOLLOW)

 

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IN WITNESS WHEREOF,  Executive has executed this General Release as of the         day of                  20    .

 

	
 
    	
EXECUTIVE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:   Joseph L. Billhimer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ACCEPTED   AND ACKNOWLEDGED BY
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MOUNTAINEER   PARK, INC. AND MTR GAMING GROUP, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Jeffrey   J. Dahl
    
	
 
    	
Title:
    	
President   and Chief Executive Officer of MTR Gaming Group, Inc.
    

 

18EXHIBIT 10.2

 

ENDORSEMENT TO 10% SENIOR SECURED CONVERTIBLE NOTE

 

Precision Optics Corporation, Inc.
 New York, New York
 March 31, 2011

 

The 10% Senior Secured Convertible Note dated June 25, 2008 and amended December 11, 2008, June 25, 2010 July 26, 2010, September 15, 2010, October 15, 2010, November 15, 2010, November 30, 2010, December 1, 2010, December 3, 2010 and December 17, 2010, January 10, 2011,  January 24, 2011, February 7, 2011, February 25, 2011 and March 11, 2011 (the “Note”) of Precision Optics Corporation, Inc., a Massachusetts corporation (the “Company”), payable to the order of Special Situations Private Equity Fund, L.P. (the “Holder”) in an aggregate principal amount of $275,000 and to which the Endorsement is affixed is hereby amended in the following respects:

 

1.           The term “Stated Maturity Date” is hereby restated to be “April 15, 2011.”

 

2.           Except as expressly amended by this Endorsement, the Note remains in full force and effect and the Company hereby reconfirms its obligations thereunder.

 

IN WITNESS WHEREOF, the Company has caused this Endorsement to be duly executed, and the Holder has caused this Endorsement to be duly accepted, by their respective duly authorized representatives as of the day and year first above written.

 

 

	
 
    	
PRECISION   OPTICS CORPORATION, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/   Joseph N. Forkey
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:   
    	
Joseph   N. Forkey
    
	
 
    	
 
    	
Title:   
    	
Chief   Executive Officer
    
					

 

	
Accepted:
    
	
 
    
	
SPECIAL SITUATIONS PRIVATE EQUITY FUND, L.P.
    
	
 
    	
 
    
	
By:
    	
 
    	
/s/   David Greenhouse
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:   
    	
David   Greenhouse
    
	
 
    	
Title:   
    	
General   Partner

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