Document:

exhibit_10-1.htm

     

     

     

     

                                                                                                            EXHIBIT 10.1

     

     

    

      EMPLOYMENT
AGREEMENT

      

      This Employment Agreement ("Agreement")
is entered into as of April 3, 2009,
by and between The Majestic Star Casino, LLC ("Employer" or the “Company”) and
Michael Darley ("Executive").

      

      
        	
                1.  

              	
                Employment.  Employer
      hereby employs Executive, and Executive hereby accepts employment by the
      Employer, as Executive Vice President and Chief Operating Officer for the
      Company, and agrees to perform such executive, managerial and
      administrative duties, commensurate with Executive's position, as Employer
      may specify from time to time, during the Specified Term (defined
      below).

              

      

       

      
        	
                2.  

              	
                Effective Date;
      Specified Term.  Except as otherwise provided herein,
      this Agreement shall be effective as of April 3, 2009 (“Effective
      Date”).  Subject to earlier termination as provided herein, the
      Company shall retain Executive and Executive shall serve in the employ of
      the Employer for a period commencing at the Effective Date and extending
      through and including May 1, 2010 ("Specified Term").  If either
      party to this Agreement chooses not to renew or extend the terms and
      conditions of this Agreement, which renewal or extension shall be set
      forth in writing, but Executive remains employed after the Specified Term,
      then Executive’s employment with Employer may continue on an at-will basis
      and no paragraph, section, duty or obligation appearing in this Agreement
      shall be binding on the parties except paragraphs 6, 7, 8, 9, 14, 15, 16,
      17, 18, 19, 20, 21 and 23.

              

      

       

      
        	
                3.  

              	
                Compensation.

              

      

       

      
        	
                a.  

              	
                Base
      Salary. From January 1,
      2009 through the end of the Specified Term, in
      consideration of the performance by Executive of Executive's obligations
      hereunder to Employer, Employer shall pay Executive an annual base salary
      ("Base Salary") of Four Hundred Thousand Dollars
      ($400,000).  The Base Salary shall be payable in accordance with
      the payroll practices of Employer as in effect from time to time for
      Employer's executives.  The Base Salary shall be reviewed
      annually, exclusively by Employer, and any increase thereto shall be in
      Employer’s sole discretion.

              

      

       

      
        	
                b.  

              	
                Bonus
      Compensation.  Executive shall be
      entitled to participate in Employer’s discretionary bonus or incentive
      plan as formulated from time to time by Employer’s Board of Directors in
      its sole and absolute discretion.  Such program is primarily
      based on achievement of EBITDA goals and Executive's
      performance.  The target bonus for Executive will be forty
      percent (40%) of the actual Base Salary paid to Executive during the bonus
      plan year, and based on the Employer's bonus program in effect at that
      time ("Bonus Compensation"). Should the Company adopt an Executive
      Incentive Plan and Executive elects to participate in such plan, Executive
      must waive in writing any right he may have to Bonus Compensation for 2009
      pursuant to the discretionary bonus
plan.

              

      

       

      
        
           

        

        
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                c.  

              	
                Executive Benefit
      Programs.  From January 1, 2009 through the end of the
      Specified Term, Executive shall be entitled to participate in all of
      Employer's benefit plans ("Plans") as are generally made available from
      time-to-time to Employer's executives, subject to the terms and conditions
      of such plans, and subject to Employer's right to amend, terminate, or
      take other similar actions with respect to such plans.  To the
      extent such Plans include life insurance, the Company agrees to provide
      life insurance on terms and conditions no less favorable than similarly
      situated executives. Executive shall receive a maximum reimbursement of
      five thousand dollars ($5,000.00) per calendar year for unreimbursed
      medically necessary expenses incurred in the same calendar year and
      submitted in accordance with Employer’s expense reimbursement
      procedures.

              

      

       

      
        	
                d.  

              	
                Business Expense
      Reimbursements.  Pursuant to Employer’s expense
      reimbursement policies then in effect, and upon timely submission of
      appropriate documentation to Employer, Employer shall pay or reimburse
      Executive for all reasonable out-of-pocket expenses, including travel and
      training, Executive incurs from January 1, 2009 through the end of the
      Specified Term in the course of performing Executive's duties under this
      Agreement.

              

      

       

      
        	
                e.  

              	
                Vacation.  As
      of the January 1, 2009, Executive shall be entitled to vacation as
      outlined in the prevailing Corporate Policy Manual for Corporate
      Executives.

              

      

       

      
        	
                4.  

              	
                Extent of
      Services.  Executive agrees
      that the duties and services to be performed by Executive shall be
      performed exclusively for Employer.  Executive further agrees to
      perform such duties in an efficient, trustworthy, lawful, and businesslike
      manner.  Executive agrees not to render to others any service of
      any kind whether or not for compensation, or to engage in any other
      business activity whether or not for compen­sation, that is similar to
      or conflicts with the performance of Executive's duties under this
      Agreement, without the prior written approval of Employer’s President and
      Chief Executive Officer.

              

      

       

      
        	
                5.  

              	
                Policies and
      Procedures.  In addition to the terms herein, Executive
      agrees to be bound by Employer's policies and procedures, including drug
      testing and background checks, as may be established or amended by
      Employer in its sole discretion from time to time.  In the event
      the terms in this Agreement conflict with Employer's policies and
      procedures, the terms herein shall take
  precedence.

              

      

       

      
        	
                6.  

              	
                Licensing
      Requirements.  Executive acknowledges that Employer is
      engaged in a business that is or may be subject to and exists because of
      privileged licenses issued by governmental authorities in various
      jurisdictions in which Employer and its parents, subsidiaries, affiliates,
      and joint ventures (collectively “Employer Group”) are engaged in or have
      applied to engage in, or during the Specified Term, may apply to engage in
      business.  Executive shall apply for and obtain any license,
      qualification, clearance, or approval that shall be requested or required
      of Executive by any regulatory
authority

              

      

       

      
        
           

        

        
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      having
jurisdiction over Employer or Employer Group.  Additionally, Executive
shall timely prepare and submit to Employer all background information forms and
other documents required pursuant to Employer’s Gaming Compliance
Program.  Any and all costs associated with license qualifications,
clearances or approvals shall be paid by the Employer.

       

      
        	
                7.  

              	
                Failure to Satisfy
      Licensing Requirement.  If Executive fails to satisfy any
      licensing requirement referred to in paragraph 6 above, or if any
      governmental authority directs the Employer to terminate any relationship
      it may have with Executive, or if Employer shall determine, in Employer's
      sole and exclusive judgment, that Executive was, is or might be involved
      in, or is about to be involved in, any activity, relationship(s) or
      circumstance that could or does jeopardize the business of Employer or
      Employer's Group, their reputation or such licenses, or if any such
      license is threatened to be, or is, denied, curtailed, suspended or
      revoked, this Agreement may be terminated by Employer and the parties'
      obligations and responsibilities shall be determined by the provisions of
      paragraph 11(a).

              

      

       

      
        	
                8.  

              	
                Restrictive
      Covenants.

              

      

       

      
        	
                a.  

              	
                Competition.
      Executive acknowledges that, in the course of Executive's responsibilities
      hereunder, Executive will form relationships and become acquainted with
      certain confidential and proprietary information as further described
      herein. Executive further acknowledges that such relationships and
      information are and will remain valuable to the Employer and Employer
      Group and that the restrictions on future employment as set forth herein
      are reasonably necessary in order for Employer and Employer Group to
      remain competitive in the gaming industry. Executive agrees that during
      the period of his/her employment with the Company and for the twelve (12)
      month period following termination or expiration of his employment with
      the Company for whatever reason he will not become a stockholder,
      director, officer, employee or agent of or consultant to any corporation,
      partnership or other entity or engage in any business as a sole proprietor
      in or act as a consultant to any such entity or otherwise engage, directly
      or indirectly, in any enterprise, in each case which competes with or has
      a vendor relationship with any business or activity (“Competitor”) engaged
      in, or known by Executive to be contemplated to be engaged in, by the
      Company or the Employer Group in any county in which the Company or the
      Employer Group has gaming operations; provided, that if applicable,
      restrictions regarding the state of Nevada shall be limited to those
      Competitors who have a presence located on Fremont Street between Main
      Street and Las Vegas Boulevard. Competition shall not include the
      ownership (solely as an investor and without any other participation in or
      contact with the management of the business) of less than one percent 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.  The Company, in its
      sole discretion, may waive one or more of the restrictions set forth in
      this subparagraph; however, any such waiver must be in writing executed by
      an authorized Company representative, and shall be effective only to the
      extent it is set forth in writing.  In the event Company
      agrees

              

      

       

      
        
           

        

        
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      to waive
one or more of the restrictions in this subparagraph, Executive shall not be
entitled to compensation, if any is due, for the period waived.

       

      
        	
                b.  

              	
                Non-solicitation-Customers:  During
      and for twenty-four (24) months after Executive’s employment with
      Employer, the Executive covenants not
to:

              

      

       

      
        	
                 
      

              	
                 i.

              	
                Make
      known to any third party or use other than in the performance of his/her
      duties the names and addresses of any of the customers of Employer or any
      member of Employer Group, or any other information or data pertaining to
      those customers;

              

      

       

      
        	
                 
      

              	
                ii.

              	
                Call
      on, solicit, induce to leave and/or take away, or attempt to call on,
      solicit, induce to leave and/or take away, any of the customers of
      Employer or Employer Group, either for Executive's own account or for any
      third party;  or

              

      

       

      
        	
                 
      

              	
                iii.

              	
                Call
      on, solicit and/or take away any potential or prospective customer of
      Employer or Employer Group, on whom the Executive called or with whom
      Executive became acquainted during employment (either before or during the
      Specified Term), either for Executive's own account or for any third
      party.

              

      

       

      
        	
                 
      

              	
                c.

              	
                Non-Solicitation-Employees
      and Independent Contractors.   For the twelve (12)
      month period immediately following termination of Executive’s employment
      with Employer for any reason whatsoever, Executive covenants not to
      approach or solicit any employee or independent contractor of Employer or
      any member of the Employer Group with a view towards enticing such person
      to leave the employ or service of Employer or any member of the Employer
      Group, or hire or contract with any employee or independent contractor of
      Employer or any member of the Employer Group, without the prior written
      consent of the Employer, such consent to be within Employer's sole and
      absolute discre­tion.

              

      

       

      
        	
                 
      

              	
                d.

              	
                Confidentiality.  Executive
      covenants and agrees that Executive shall not at any time during the
      Specified Term or thereafter, without Employer's prior written consent,
      such consent to be within Employer's sole and absolute discretion,
      disclose or make known to any person or entity outside the Employer Group
      any Trade Secret (as defined below), or proprietary or other confidential
      information, in any form, concerning Employer or any member of the
      Employer Group, including without limitation, Employer's custom­ers,
      its casino, hotel, and marketing practices and procedures, management and
      employment practices, procedures and policies, or any other information
      regarding Employer or any member of the Employer Group, which is not
      already and generally known to the public through no wrongful act of
      Executive or any other party.  Executive covenants and agrees
      that Executive shall not at any time during the Specified Term or
      thereafter, without the Employer's prior written consent, utilize any such
      Trade Secrets, proprietary or confidential information in any way other
      than in

              

      

       

      
        
           

        

        
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      connection
with Executive’s employment hereunder. For purposes of this Agreement, Trade
Secrets is defined as data or information, including a formula, pattern,
compilation, program, device, method, know-how, technique or process, that
derives any economic value, present or potential, from not being generally known
to, and not being readily ascertainable by proper means by, other persons who
may or could obtain any economic value from its disclosure or use.

       

      
        	
                 
      

              	
                e.

              	
                Third Party
      Information.  Executive acknowledges that Employer and
      other members of the Employer Group have received and in the future will
      receive from third parties their confidential or proprietary information
      subject to a duty to maintain the confidentiality of such information and
      to use it only for certain limited purposes.  Executive shall
      hold all such confidential or proprietary information in the strictest
      confidence and will not disclose it to any person or entity or use it
      except as necessary in carrying out Executive's duties hereunder
      consistent with Employer's (or such other member of the Employer Group's)
      agreement with such third party.

              

      

       

      
        	
                 
      

              	
                f.

              	
                Employer's
      Property.  Executive hereby confirms that Trade Secrets,
      proprietary or confidential information and all information concerning
      Employer or Employer Group’s customers, goods, services or facilities
      owned, operated or managed by Employer constitute Employer's exclusive
      property (regard­less of whether Executive possessed or claims to have
      possessed such information prior to the date hereof).  Executive
      agrees that upon termination of employ­ment, Executive shall promptly
      return to Employer all documents, papers, notes, notebooks,
      memo­randa, computer disks, and any other similar repositories of
      information (regardless of whether Executive possessed such information
      prior to the date hereof) containing or relating in any way to the Trade
      Secrets or proprietary or confidential information of each member of the
      Employer Group, including but not limited to, the documents referred to in
      paragraph 8(d).  Such repositories of information also include
      but are not limited to any so-called personal files or other personal data
      compilations in any form, which in any manner contain any Trade Secrets or
      proprietary or confidential information of Employer or any member of the
      Employer Group.

              

      

       

      
        	
                 
      

              	
                g.

              	
                Notice to
      Employer.  Executive agrees to notify Employer
      immediately of any entity or person for whom Executive works or provides
      services (whether or not for remuneration to Executive or a third party)
      during the Specified Term and within the non-competition period specified
      in paragraph 8.a. above.

              

      

       

      
        	
                9.  

              	
                Representations.  Executive hereby
      represents, warrants and agrees with Employer
  that:

              

      

       

      
        	
                a.  

              	
                The
      covenants and agreements contained in paragraphs 4 and 8 above are
      reasonable, appropriate and suitable in their geographic scope, duration
      and content; Employer's agreement to employ the Executive and a portion of
      the compensation and consideration to be paid to Executive hereunder is
      separate and partial consideration for such covenants and agreements;
      Executive shall not,

              

      

       

      
        
           

        

        
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      directly
or indirectly, raise any issue of the reasonableness, appropriateness and
suitability of the geographic scope, duration or content of such covenants and
agreements in any proceeding to enforce such covenants and agreements; and such covenants and
agreements shall survive the termina­tion of this Agreement, in accordance
with their terms;

       

      
        	
                 
      

              	
                b.

              	
                The
      enforcement of any remedy under this Agreement will not prevent Executive
      from earning a livelihood, because Executive's past work history and
      abilities are such that Executive can reasonably expect to find work in
      other areas and lines of business;

              

      

       

      
        	
                 
      

              	
                c.

              	
                The
      covenants and agreements stated in paragraphs 4 and 8 above are essential
      for the Employer's reasonable
protection;

              

      

       

      
        	
                 
      

              	
                d.

              	
                Employer
      has reasonably relied on these covenants and agreements by
      Executive;

              

      

       

      
        	
                 
      

              	
                e.

              	
                Executive
      has the full right to enter into this Agreement, and entering into and
      performance of this Agreement will not violate or conflict with any
      arrangements or agreements Executive may have or agreed to have with any
      other person or entity; and

              

      

       

      
        	
                 
      

              	
                f.

              	
                Executive
      acknowledges and warrants to Employer the receipt and sufficiency of
      separate consideration for the assignment by Employer of Employer's rights
      and Executive's obligation under paragraph
8.

              

      

       

      Notwithstanding
paragraph 20, Executive agrees that in the event of Executive's breach or
threatened breach of any covenants and agreements set forth in paragraphs 4 and
8 above, Employer may seek to enforce such covenants and agreements in court
through any equitable remedy, including specific performance or injunction,
without waiving any claim for damages.  In any such event, Executive
waives any claim that the Employer has an adequate remedy at law or for the
posting of a bond.

       

      
        	
                10.  

              	
                Termination for
      Death.  Executive's employment hereunder shall terminate
      upon Executive's death.  In the event of Executive's death,
      Executive (or Executive's estate)  shall have no right to
      receive any compensation or benefit hereunder or otherwise from Employer
      or any member of the Employer Group on and after the effective date of
      termination of employment other than: (1) unpaid Base Salary earned to the
      date of termination of employment (which shall be paid on Employer's next
      scheduled payroll date); (2) any discretionary Bonus Compensation that may
      be paid in accordance with Employer’s discretionary bonus plan then in
      effect; (3) business expense reimbursement pursuant to paragraph 3(d); (4)
      benefits provided pursuant to paragraph 3(c), subject to the terms and
      conditions applicable thereto; (5) payment of a lump sum amount equal to
      the equivalent of sixty (60) days Base Salary within ninety (90) days
      following Executive’s death; and (6) payment by the Company of the full
      cost for COBRA coverage on behalf of the Executive’s COBRA beneficiaries
      for the first twelve months of COBRA
coverage.

              

      

       

      
        
           

        

        
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                11.  

              	
                Termination by
      Employer

              

      

       

      
        	
                a.  

              	
                For
      Cause.  Employer may terminate Executive's employment
      hereunder for Cause (as defined below) at any time. If Employer terminates
      Executive's employment for Cause, Executive shall have no right to receive
      any compensation or benefits hereunder or otherwise from Employer or any
      member of the Employer Group on and after the effective date of
      termination of employment other than:   (1) unpaid Base
      Salary earned to the date of termination of employment (which shall be
      paid on Employer's next scheduled payroll date); (2) business expense
      reimbursement pursuant to paragraph 3(d); and, (3) benefits provided
      pursuant to paragraph 3(c), subject to the terms and conditions applicable
      thereto. For purposes of this paragraph 11, “Cause” is defined as
      Executive's:  (i) failure to abide by Employer’s policies and
      procedures; (ii) misconduct, gross negligence, insubordination, or
      inattention to Employer’s business; (iii) failure to perform the duties
      required of Executive up to the standards established by the President and
      Chief Executive Officer or other material breach of this Agreement,
      including the duty to implement cost savings and revenue generation
      initiatives as directed by the President and Chief Executive Officer; or
      (iv) failure or inability to satisfy the requirements stated in paragraphs
      6 and 8 above.  Should Employer believe that cause exists to
      terminate Executive, Employer agrees to provide written notice to
      Executive of the specific items identified as cause and afford Executive a
      period of thirty (30) business days from receipt of the written notice to
      remedy the deficiencies to Employer's satisfaction.  If, at the
      conclusion of the cure period, Employer determines Executive has not
      satisfactorily remedied the deficiency, Employer shall notify Executive
      who shall be immediately terminated.  Nothing in this paragraph
      11 precludes Employer from immediately terminating Executive's employment
      if Executive is convicted of felonious criminal conduct; physically
      aggressive conduct toward any co-worker, patron, vendor or customer of
      Employer; illegal drug use; or based upon any gaming authority's demand
      that Employer do so.

              

      

       

      
        	
                b.  

              	
                Without
      Cause.  Employer may terminate Executive at any time
      during the Specified Term upon thirty (30) days’ written notice, or, in
      the Employer’s sole discretion, pay Executive the equivalent of thirty
      (30) days’ Base Salary in lieu of notice upon termination.  In
      addition to any amount due in lieu of notice, should Employer terminate
      Executive’s employment without cause, then Executive shall have no right
      to receive any compensation or benefits hereunder or otherwise from
      Employer or any member of the Employer Group on or after the effective
      date of termination of employment other than:  (1) unpaid Base
      Salary earned to the date of termination of employment; (2) payment of a
      lump sum amount equal to twelve (12) months’ Base Salary within ninety
      (90) days following Executive’s termination; (3) any discretionary Bonus
      Compensation that may be paid in accordance with Employer’s discretionary
      bonus plan then in effect; (4) business expense reimbursement pursuant to
      paragraph 3(d); (5) benefits provided
pursuant

              

      

       

      
        
           

        

        
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      to
paragraph 3(c), subject to the terms and conditions applicable thereto; and (6)
payment by the Company of the full cost for COBRA coverage on behalf of the
Executive and his COBRA beneficiaries for the first twelve (12) months of COBRA
coverage.  

       

      
        	
                12.  

              	
                Termination By
      Executive

              

      

       

      
        	
                a.  

              	
                For Good
      Reason.  Executive may terminate Executive's employment
      hereunder for Good Reason upon thirty (30) days prior written notice to
      Employer.  “Good Reason” shall mean:  (a) failure of
      Employer to pay Executive's compensation when due; (b) material reductions
      in Executive's duties and responsibilities without Executive’s
      consent; or (c) following a Change in Control provided that Executive
      exercises such right to terminate pursuant to this paragraph 12(a)(c)
      within thirty (30) days after a Change in Control. "Change in Control"
      means:  (i) a sale, exchange or transfer of more than 50% of the
      assets or earning power of the Company on a consolidated basis or more
      than 50% of its ownership; (ii) a merger or consolidation of the Company
      (excluding merger or consolidation where the voting securities of the
      Company prior to the merger or consolidation continue to represent more
      than 50% of the combined voting power of the surviving entity after the
      merger or consolidation); (iii) any reorganization, reverse stock split or
      recapitalization that would result in a change in control; (iv) any
      liquidation or dissolution of the Company; or, (v) any transactions or
      series of related transactions having the same effect as a Change in
      Control.  Should Executive terminate for Good Reason, Executive
      shall be entitled to:  (1) unpaid Base Salary earned to the date
      of termination of employment; (2) payment of a lump sum amount equal to
      twelve (12) months’ Base Salary within ninety (90) days following
      Executive’s termination; (3) any Bonus Compensation earned as determined
      by and consistent with Employer's bonus program then in effect prorated
      for the period of employment during the applicable bonus period; (4)
      business expense reimbursement pursuant to paragraph 3(d); (5) benefits
      provided pursuant to paragraph 3(c), subject to the terms and conditions
      applicable thereto; and (6) payment by the Company of the full cost for
      COBRA coverage on behalf of the Executive and his COBRA beneficiaries for
      the first twelve (12) months of COBRA coverage.  Good Reason
      shall not exist unless Executive first provides the President and Chief
      Executive Officer with written notice of the facts alleged to constitute
      Good Reason and until such breach, reduction or requirement remains
      uncured for thirty (30) business days following the President and Chief
      Executive Officer’s receipt of such written notice from Executive. The
      thirty (30) business day cure period shall not apply to a Change in
      Control.

              

      

       

      
        	
                 
      

              	
                b.

              	
                Without Good
      Reason.  Executive may terminate
      his/her  employment for any reason (including no reason) other
      than Good Reason, death or disability, upon providing to Employer thirty
      (30) days’ advance written notice of such termination.  Should
      Executive terminate his/her employment for a reason other than Good
      Reason, death or disability, Executive shall have no right to receive any
      compensation or benefit hereunder or otherwise from Employer or
      any

              

      

      
        
           

        

        
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      member of
the Employer Group on and after the effective date of termination other than:
(1) unpaid Base Salary earned to the date of termination of employment (which
shall be paid on Employer's next scheduled payroll date); (2) business expense
reimbursement pursuant to paragraph 3(d); and (3) benefits provided pursuant to
paragraph 3(c), subject to the terms and conditions applicable
thereto.

      

      
        	
                13.  

              	
                Release; Full
      Satisfaction.  Notwithstanding anything to the contrary,
      no payments or benefits shall be provided pursuant to paragraphs 11(b) and
      12(a) unless and until Executive executes and delivers a standard form of
      general release of claims, and such release has become irrevocable;
      provided, however, that Executive shall not be required to release any
      indemnification rights or continuing rights to benefits under Employer's
      benefit plans, in accordance with the terms and conditions of such
      plans.

              

      

       

      
        	
                14.  

              	
                Cooperation Following
      Termination.  Following termination of Executive's
      employment hereunder for any reason, Executive agrees to cooperate with
      Employer upon the reasonable request of the Employer and to be reasonably
      available to Employer with respect to matters arising out of Executive's
      services.  Employer shall reimburse, or at Executive's request,
      advance Executive for expenses reasonably incurred in connection with such
      matters.

              

      

       

      
        	
                15.  

              	
                Interpretation; Each
      Party the Drafter.  Each of the parties was represented
      by or had the opportunity to consult with counsel who either participated
      in the formulation and documentation of, or was afforded the opportunity
      to review and provide comments on, this Agreement. Accordingly, this
      Agreement and the provisions contained in it shall not be construed or
      interpreted for or against any party to this Agreement because that party
      drafted or caused that party's legal representative to draft any of its
      provisions.

              

      

       

      
        	
                16.  

              	
                Severability.  If
      any provision hereof is unenforceable, illegal or invalid for any reason
      whatsoever, such fact shall not affect the remaining provisions hereof,
      except in the event a law or court decision, whether on application for
      declaration, or preliminary injunction or upon final judgment, declares
      one or more of the provisions of this Agreement that impose restrictions
      on Executive unenforceable or invalid because of the geographic scope or
      time duration of such restriction.  In such event, Employer
      shall have the option:

              

      

       

      (a)           To
deem the invalidated restrictions retroactively modified to provide for the
maximum geographic scope and time duration that would make such provisions
enforceable and valid; or

       

      (b)           To
terminate this Agreement pursuant to paragraph 11(a) or 11(b), whichever is
applicable.

       

      Exercise
of any of these options shall not affect Employer's right to seek damages or
such additional relief as may be allowed by law in respect to any breach by
Executive of the enforceable provisions of this Agreement.

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      

       

      
        	
                17.  

              	
                Notice.  For
      purposes of this Agreement, notices and all other communications provided
      for in this Agreement shall be in writing and shall be deemed to have been
      duly given: (i) when personally delivered; (ii) when delivered by
      facsimile upon receipt of confirmation that the transmission was
      successful; (iii) the business day following the day when deposited with a
      reputable and established overnight express courier (charges prepaid); or
      (iv) five (5) days following mailing by certified or registered mail,
      postage prepaid and return receipt requested.  Unless another
      address is specified, notices shall be sent to the addresses indicated
      below:

              

      

       

      To
Employer:                                                                                     With
a copy to its:

                     
The Majestic Star Casino,
LLC                                                      
The Majestic Star Casino, LLCc/o Barden Development
Inc.            

                   
  163 Madison Ave., Suite
2000                                                         301
Fremont Street – 12th
Floor                                                 

                     
Detroit,
MI                                                                                         
Las Vegas, Nevada 89101       

                    
 President and
CEO                                                                           
Sr. V.P. of Human
Resources                                  

      Facsimile
#:  (313)496-8700                                                              
Facsimile #: (702) 382-5562

      

      To
Executive:

      Michael
Darley

      3092 Via
Flamina Court

      Henderson,
NV  89052

      

      or to
such other address as either party shall have furnished to the other in writing
in accordance herewith.

      

      
        	
                18.

              	
                Tax
      Withholding.  Notwithstanding any other provision of this
      Agreement, Employer may withhold from any amounts payable under this
      Agreement, or any other benefits received pursuant hereto, such federal,
      state, local and other taxes as shall be required to be
      withheld under any applicable law or
  regulation.

              

      

       

      
        
          	
                  19.

                	Indemnification and Expense
      Reimbursement. The Company will indemnify Executive and
      advance or reimbursement reasonable expenses incurred by Executive in
      defending a proceeding for which indemnification
      is       permitted to the fullest extent
      provided under the Company’s Operating Agreement as amended from time to
      time

        

         

        
           

          
            	
                    20.          

                  	
                    Dispute
      Resolution.

                  

          

           

        

      

      
        	
                a.  

              	
                Any
      dispute, claim or controversy arising from or related in any way to this
      Agreement or the interpretation, application, breach, termination or
      validity thereof, including any claim of inducement of this Agreement by
      fraud, or arising from or related in any way to Executive's employment
      with Employer will be submitted for final resolution by private
      arbitration before a single arbitrator
and

              

      

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      in
accordance with the National Rules for the Resolution of Employment Disputes and
practices then in effect of the American Arbitration Association or any
successors thereto ("AAA"), except where those rules conflict with these
provisions, in which case these provisions control; provided, however, that
Employer shall have the right to seek in court equitable relief, including a
temporary restraining order, preliminary or permanent injunction or an
injunction in aid of arbitration, to enforce its rights set forth in paragraph
8.  The arbitration shall be held in Las Vegas, Nevada.

       

      
        	
                b.  

              	
                Giving
      recognition to the understanding of the parties hereto that they
      contemplate reasonable discovery, including document demands and
      depositions, the arbitrator shall provide for discovery in accordance with
      the Nevada Rules of Civil Procedure as reasonably applicable to this
      private arbitration.

              

      

       

      
        	
                c.  

              	
                To
      the extent possible, the arbitration hearings and award will be maintained
      in confidence, except as may be required by law or for the purpose of
      enforcement of an arbitration
award.

              

      

       

      
        	
                d.  

              	
                Each
      party shall bear its own costs and expenses incurred in connection with
      arbitration proceedings pursuant to this Agreement to arbitrate. To the
      extent permitted by law, the costs and expenses of the arbitrator(s) and
      related expenses shall be shared equally between Employer and
      Executive.

              

      

       

      
        	
                e.  

              	
                Each
      party hereto waives, to the fullest extent permitted by law, any claim to
      punitive, exemplary, liquidated, or multiplied damages from the
      other.

              

      

       

      
        	
                21.

              	
                No Waiver of Breach or
      Remedies.  No failure or delay on the part of Employer or
      Executive in exercising any right, power or remedy hereunder shall operate
      as a waiver thereof nor shall any single or partial exercise of any such
      right, power or remedy preclude any other or further exercise thereof or
      the exercise of any other right, power or remedy hereunder.  The
      remedies herein provided are cumulative and not exclusive of any remedies
      provided by law.

              

      

       

      
        	
                22.

              	
                Amendment or
      Modification.  No amendment, modification, termination or
      waiver of any provision of this Agreement shall be effective unless the
      same shall be in writing and signed and approved by the Company’s
      President and Chief Executive Officer and Executive, nor shall consent to
      any departure by the Executive from any of the terms of this Agreement be
      effective unless the same is signed by the Company’s President and Chief
      Executive Officer.  Any such waiver or consent shall be
      effective only in the specific instance and for the specific purpose for
      which given.

              

      

       

      
        	
                23.

              	
                Governing Law;
      Venue.  The laws of the State of Nevada shall govern the
      validity, construction, and interpretation of this Agreement, without
      regard to conflict of law principles.  Each party irrevocably
      submits to the exclusive jurisdiction of the courts of the State of Nevada
      in any action, suit or proceeding of any kind arising out of or
      relating

              

      

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      to this
Agreement (including arbitration) or any matters contemplated hereby, and agrees
that any such action, suit or proceeding shall be brought only in such
court.

       

      
        	
                24.

              	
                Headings.  The
      headings in this Agreement have been included solely for convenience of
      reference and shall not be considered in the interpretation or
      construction of this Agreement.

              

      

       

      
        	
                25.

              	
                Assign­ment.  This
      Agreement is personal to Executive and Employer and may not be assigned by
      either party without written consent from the other, which consent may be
      withheld for any reason (including no
reason).

              

      

       

      
        	
                26.

              	
                Prior
      Agreements.  At the Effective Date, this Agreement shall
      supersede and replace any and all other prior discussions and negotiations
      as well as any and all agreements and arrangements that may have been
      entered into by and between Employer or any predecessor thereof, on the
      one hand, and Executive, on the other hand, prior to the Effective Date
      relating to the subject matter hereof.  Executive acknowledges
      that all rights under such prior agreements and arrangements shall be
      extinguished.

              

      

       

      IN WITNESS WHEREOF, Employer
and Executive have entered into this Agreement as of the date first written
above.

      

      MICHAEL DARLEY

      

      

      /s/ Michael L. Darley

      Signature

      

                  Date:  4/3/09

      

      THE MAJESTIC STAR CASINO,
LLC

      

      

      By:           /s/ Don H. Barden

       Don H. Barden

      Its:           President
and Chief Executive Officer

      

                  Date:  4/3/09

      
        
           

        

        
          12exhibit_10-2.htm

     

     

     

                                                                                                                   EXHIBIT 10.2

     

    

      THE
MAJESTIC STAR CASINO, LLC

      2009
EXECUTIVE INCENTIVE PLAN

      

      

      Plan
Objectives

      

      In
recognition of the current financial position of The Majestic Star Casino, LLC
and its wholly-owned subsidiaries (collectively, “MSC” or the “Company”), and
given the necessity to substantially improve financial and operating performance
during the upcoming year, the Company has elected to adopt the Executive
Incentive Plan (the “Incentive Plan”) set forth herein (and the exhibits
attached hereto) for the 2009 calendar year and any subsequent period(s) as may
be determined from time to time by the MSC board of directors.  Among
other things, the Incentive Plan is designed to: i) incentivize each member of
MSC’s executive management team to perform at his / her highest level; ii)
reward members of the executive management team for increasing the value of the
enterprise through improved financial performance; iii) encourage MSC executives
to coordinate and collaborate as a team; and iv) compensate those members of the
executive management team whose workloads have and/or will continue to increase
substantially due to the Company’s financial restructuring and turnaround
efforts.

      

      Plan
Participants

      

      After a
comprehensive review of the MSC management team and the Company’s organizational
structure, 11 executives have been selected to participate in the Incentive Plan
(the “Eligible Executives”).  The Eligible Executives were selected
using various criteria including, but not limited to, the following: i) the
duties and responsibilities assigned to the executive and the degree to which
such duties / responsibilities are critical to the future success of the
organization; ii) the degree to which the executive is likely to have a
meaningful positive impact on the future operating and financial performance of
the Company; iii) that the executive does not hold an equity interest (either in
the form of stock, options or warrants) in the Company that would otherwise
serve to incentivize and reward the executive for achieving the desired
financial and operating performance; and iv) the executive agrees to waive (in
writing) any right he/she may have pursuant to an employment agreement (or
otherwise) to any performance-based compensation other than the Incentive
Compensation (as defined below) to which he/she would be entitled pursuant to
the Incentive Plan for the period(s) during which the Incentive Plan is intended
to apply.

      

      

      General Overview of the
Incentive Plan

      

      As noted
above, the universe of Eligible Executives consists of 11 members of the MSC
management team.  The list of Eligible Executives may be expanded at
the Company’s sole discretion. The Eligible Executives as of the date hereof are
referenced at Exhibit 1 attached hereto. In connection with formulating the
Incentive Plan, the Eligible Executives have been grouped into three (3) subsets
based on the level of duties and

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      responsibilities
assigned to each and their potential impact on the future operating and
financial performance of the Company.  The three (3) subsets of
Eligible Executives are as follows:

      

      Group 1
consists of Eligible Executives who have the most significant corporate /
Company-wide responsibilities and have a direct reporting relationship to either
the Company’s Chief Executive Officer or Chief Operating Officer (hereinafter,
the “Group 1 Executives”). There are five (5) Group 1 Executives, each of whom
is specifically identified at Exhibit 1.

      

      Group 2
consists solely of the General Managers of MSC gaming properties (hereinafter,
the “Group 2 Executives”).  There are three (3) Group 2 Executives,
each of whom is specifically identified at Exhibit 1.

      

      Group 3
consists of executives at the corporate level who are responsible for critical
corporate / Company-wide functions but whose scope of duties and level of
responsibilities are less than that of the Group 1 Executives (hereinafter, the
“Group 3 Executives”).  There are three (3) Group 3 Executives, each
of whom is specifically identified at Exhibit 1.

      

      Based on
the group to which each Eligible Executive is assigned, he or she shall be
eligible to earn incremental compensation over and above his or her base salary
(“Incentive Compensation”) based on performance and the results achieved during
the period(s) covered by the Incentive Plan.  The Incentive
Compensation that can be earned under the Incentive Plan ranges from 40% to
80%1 (as a percentage of the annual base salary
then in effect) depending on the individual Eligible Executive and the group to
which he or she is assigned.  To the extent an Eligible Executive and
the Company have previously entered into an employment agreement with respect to
the executive’s services, and such employment agreement provides for the
executive to receive a performance bonus (or other similar form of incentive
compensation), such performance bonus (or other similar form of incentive
compensation) for any period during which the Incentive Plan is in effect will
be determined (and paid) in accordance with the Incentive Plan in lieu of any
other performance-based bonus (or other similar form of incentive compensation)
to which the Eligible Executive may have otherwise been entitled during such
period(s) pursuant to his/her respective employment agreement; provided, however, the Eligible
Executive must execute the Acknowledgment presented
herewith prior to being paid any Incentive Compensation to which he/she may
otherwise be entitled under the Incentive Plan and shall not be entitled to
participate in the Incentive Plan unless such Acknowledgment is executed by
the Eligible Executive and returned to the Company’s General Counsel on or
before April 30, 2009, or as of such later date as the Company may determine in
its sole discretion.  The Incentive
Plan is intended to be in effect for calendar year 2009 unless otherwise
indicated herein or in the exhibits hereto.

      

        

      

        
        1
Represents the “target” Incentive Compensation range for Eligible Executives
assuming such executives meet, but do not exceed, the
annual EBITDAR targets (at the 100% level) for the Company and each of the
individual gaming properties.  Actual Incentive Compensation earned
may vary materially above or below this range depending on
performance.

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      Extension of the
Incentive Plan (or some modified version thereof) to any period(s) beyond 2009
is subject to the discretion of the MSC board of
directors.  In the event the
Company materially modifies the operating strategy for one or more of its
properties, the 2009 operating budget(s) for such property(ies) (and MSC on a
consolidated basis) are subject to adjustment. Accordingly, any financial
targets referenced in this Incentive Plan and/or the exhibits hereto are subject
to corresponding adjustments.

      

      

      Description of Plan (by
Group)

      

      Group 1 Executives shall be
eligible to earn Incentive Compensation of up to a range of 70% to 80%2 of their respective base salaries as in effect
for 2009.  The Incentive Compensation for Group 1 Executives shall be
divided into four (4) performance-based components which are to be weighted as
set forth at Exhibit 1.  The four (4) performance-based components are
as follows:

      

      Workload
Component – Because a substantial portion of the workload associated with
MSC’s financial restructuring and turnaround efforts falls on the shoulders of
certain of the Group 1 Executives and is incremental to such executives’
“regular” duties, these individuals have worked exceptionally long hours during
the past several months and are expected to continue to work exceptionally long
hours until such time as the Company’s operations are stabilized and its
financial position has substantially improved.  In respect of their
significantly increased workloads, certain of the Group 1 Executives will
receive a portion of their Incentive Compensation in the form of a temporary
incremental upward adjustment equal to specified percentages (as set forth at
Exhibit 1) of their respective base salaries as in effect during such period(s)
(the “Workload Component”).  The Workload Component shall be paid to
Group 1 Executives in conjunction with each regular payroll cycle throughout
calendar year 2009.

      

      Milestones
Component -   Because each Group 1 Executive performs
mission-critical corporate / Company-wide functions, a portion (as set forth at
Exhibit 1) of the Incentive Compensation that each Group 1 Executive will be
eligible to earn shall be conditioned upon the Eligible Executive achieving the
significant objective(s) as established for him/her by the Company (the
“Significant Milestones”), on or before the target completion
date(s).  The Significant Milestone(s) and target completion date(s)
established with respect to each Group 1 Executive’s Milestones Component (as
defined below) are set forth at Exhibit 2(A).3  By achieving the Significant
Milestones by the target completion dates, Group 1 Executives will significantly
contribute to the success of the Company’s overall plan for improving its
financial condition and operating performance.

      

        

      

        
        2
Represents the “target” Incentive Compensation level assuming that actual
EBITDAR meets, but does not exceed, the
annual EBITDAR target (at the 100% level) for the Company.  Actual
Incentive Compensation earned may vary materially above or below this range
depending on performance.

      

        
        3 With
respect to Group 1 Executives, the Significant Milestones have been reviewed and
expressly approved by the MSC board of directors.

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      Accordingly,
a significant component of the Incentive Compensation that Group 1 Executives
will be eligible to earn shall be tied to the achievement of the Significant
Milestones by the target completion date(s). The component of the Incentive Plan
that is conditioned upon an Eligible Executive achieving the Significant
Milestone(s) is hereinafter referred to as the “Milestones
Component.”

      

      MSC EBITDAR
Component – In order to incentivize Group 1 Executives to maximize
enterprise value by improving MSC’s financial performance, a portion (as set
forth at Exhibit 1) of the Incentive Compensation that Group 1 Executives will
be eligible to earn shall be conditioned upon the Company meeting and/or
exceeding the 2009 consolidated EBITDAR4 targets referenced at Exhibit 3 (the “MSC
EBITDAR Component”).

      

      MSC Cost Savings
Component – In order to incentivize Group 1 Executives to improve the
efficiency of MSC’s operations by successfully managing the implementation of,
and realizing the benefits from, Company-wide cost and/or property-specific
savings plans, a portion (as set forth at Exhibit 1) of the Incentive
Compensation that Group 1 Executives will be eligible to earn shall be
conditioned upon the Company holding “Total Operating Expenses”5 for 2009 at or below the lesser of: i) the
target set forth at Exhibit 5; and ii) the product of (a) the Company’s actual
2009 “gross” revenue, multiplied by (b) the Total Operating Expense % reflected
at Exhibit 5, (the “MSC Cost Savings Component”); provided, however, if MSC’s
actual consolidated EBITDAR for 2009 meets or exceeds the 2009 consolidated
EBITDAR budget (at the 100% level), the Group 1 Executives shall be deemed to
have automatically earned the MSC Cost Savings Component for such
period.

      

      Group 2 Executives shall be
eligible to earn Incentive Compensation of up to 50%6 of their respective base salaries as in effect
for 2009.  The Incentive Compensation for Group 2 Executives shall be
divided into three (3) performance-based components which are to be weighted as
set forth at Exhibit 1.  The three (3) performance-based components
are as follows:

      

        

      

        
        4 EBITDAR
is defined as earnings before interest, taxes, depreciation, amortization,
restructuring charges /reorganization items and certain other items (if any, as
deemed appropriate by the Company) which are non-cash and/or
non-recurring.

      

        
        5 For
purposes of the Incentive Plan, Total Operating Expenses equal the sum of
various expense categories (and contra-revenue items to the extent applicable)
including the following: i) Promotional Allowances; ii) Cost of Goods Sold; iii)
Payroll & Payroll-Related; iv) Gaming Taxes; v) Marketing; vi) Controllable
- Other; vii) Non-Controllable; viii) Admission Taxes; ix) Cash Back Coupons;
and x) any other expense(s) / contra-revenue item(s) referenced at any exhibit
attached hereto which contains the relevant Total Operating Expenses
target.  The forgoing notwithstanding, the computation of Total
Operating Expenses is subject to modification based on the reasonable sole
discretion of the Company.

      

        
        6
Represents the “target”  Incentive Compensation level assuming that
actual EBITDAR meets, but does not exceed, the
annual EBITDAR targets (at the 100% level) for the Company and each of the
individual gaming properties.  Actual Incentive Compensation earned
may vary materially above or below this level depending on
performance.

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      

      MSC EBITDAR
Component – In order to incentivize Group 2 Executives to work together
with the objective of maximizing enterprise value by improving MSC’s overall
financial performance, a portion (as set forth at Exhibit 1) of the Incentive
Compensation that Group 2 Executives will be eligible to earn shall be
conditioned upon the Company meeting and/or exceeding the 2009 consolidated
EBITDAR targets referenced at Exhibit 3.

      

      Property EBITDAR
Component – In order to incentivize Group 2 Executives to maximize the
financial performance of the MSC gaming property for which they have managerial
oversight responsibility, a portion (as set forth at Exhibit 1) of the Incentive
Compensation that Group 2 Executives will be eligible to earn shall be
conditioned upon their respective properties meeting and/or exceeding the
EBITDAR targets referenced at Exhibits 4(A) through 4(C) (“Property EBITDAR
Component”).

      

      Property Cost
Savings Component – In order to incentivize Group 2 Executives to improve
the efficiency of the MSC gaming properties for which they have managerial
oversight responsibility by successfully implementing, and realizing the
benefits from, the targeted cost savings for their respective properties, a
portion (as set forth at Exhibit 1) of the Incentive Compensation that Group 2
Executives will be eligible to earn shall be conditioned upon their respective
gaming properties holding Total Operating Expenses for 2009 at or below the
lesser of: i) the targets set forth at Exhibits 6(A) through 6(C), respectively;
and ii) the product of (a) each respective gaming property’s 2009 “gross”
revenue, multiplied by (b) the corresponding Total Operating Expense % for each
such gaming property as set forth at Exhibits 6(A) through 6(C), respectively
(the “Property Cost Savings Component”); provided, however, if the
actual 2009 EBITDAR for any given MSC property meets or exceeds the 2009 EBITDAR
budget (at the 100% level) for the respective gaming property, the Group 2
Executive with managerial oversight responsibility for such gaming property
shall be deemed to have automatically earned the Property Cost Savings Component
for such period.

      

      Group 3 Executives shall be
eligible to earn Incentive Compensation up to a range of 40% to 50%7 of their respective base salaries as in effect
for 2009.  The Incentive Compensation for Group 3 Executives shall be
divided into three (3) or four (4) (depending on the specific Eligible
Executive) performance-based components which are to be weighted as set forth at
Exhibit 1.  The performance-based components are as
follows:

      

      Workload
Component – Because MSC’s financial restructuring and turnaround efforts
have substantially increased the workloads of certain Group 3
Executives,

      

        

      

        
        7
Represents the “target” Incentive Compensation range assuming that actual
EBITDAR meets, but does not exceed, the
annual EBITDAR target (at the 100% level) for the Company.  Actual
Incentive Compensation earned may vary materially above or below this range
depending on performance.

      

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      and given
that their workloads are not anticipated to decrease in the near term, select
Group 3 Executives will receive a portion of their Incentive Compensation in the
form of a temporary incremental upward adjustment equal to specified percentages
(as set forth at Exhibit 1) of their respective base salaries as in effect for
2009.  The Workload Component shall be paid to Group 3 Eligible
Executives in conjunction with each regular payroll cycle throughout calendar
year 2009.

      

      Milestones
Component – Because each Group 3 Executive performs a mission-critical
corporate / Company-wide function, a portion (as set forth at Exhibit 1) of the
Incentive Compensation that each Group 3 Executive will be eligible to earn
shall be conditioned upon the Eligible Executive achieving the Significant
Milestones, as established for him/her by the Company, on or before the target
completion dates.  The Significant Milestones and target completion
dates established with respect to each Group 3 Executive’s Milestones Component
are set forth at Exhibit 2(B). By achieving these Significant Milestones, Group
3 Executives will contribute to the success of the Company’s overall plan for
improving its financial condition and operating performance.

      

      MSC EBITDAR
Component – In order to incentivize Group 3 Executives to support
Company-wide efforts to maximize enterprise value through improving MSC’s
financial performance, a portion (as set forth at Exhibit 1) of the Incentive
Compensation that Group 3 Executives will be eligible to earn shall be
conditioned upon the Company meeting and/or exceeding the 2009 consolidated
EBITDAR targets referenced at Exhibit 3.

      

      MSC Cost Savings
Component – In order to incentivize Group 3 Executives to support the
Company-wide efforts to improve the efficiency of MSC’s operations through the
successful implementation of the Company-wide and/or property-specific cost
savings plan, a portion (as set forth at Exhibit 1) of the Incentive
Compensation that Group 3 Executives will be eligible to earn shall be
conditioned upon the Company holding Total Operating Expenses for 2009 at or
below the lesser of: i) the target set forth at Exhibit 5; and ii) the product
of (a) Company’s actual 2009 “gross” revenue, multiplied by (b) the Total
Operating Expense % reflected at Exhibit 5; provided, however, if MSC’s
actual 2009 consolidated EBITDAR meets or exceeds the 2009 consolidated EBITDAR
budget (at the 100% level), the Group 3 Executives shall be deemed to have
automatically earned the MSC Cost Savings Component for such
period.

      

      Timing of Incentive
Compensation Payments

      

      Unless
otherwise indicated herein or in the exhibits hereto, Incentive Compensation
owing (if any) to each Eligible Executive pursuant to the Incentive Plan shall
be finally determined and paid to each such Eligible Executive on the earlier
of: i) the closing of the Company’s financial books and records for 2009 and the
completion of field work by the Company’s independent public accountants (“Audit
Completion Date”); and ii) March 31, 2010 (“Outside Date”).  The
foregoing notwithstanding, the following timing

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      parameters
shall apply: i) Group 1 Executives and Group 3 Executives shall be paid a pro rata share of their
respective Workload Components in conjunction with each regular payroll cycle
throughout calendar year 2009; ii) Group 1 Executives and Group 3 Executives
shall, within 45 days of the end of each applicable financial reporting quarter,
be paid an amount in respect of the Milestones Component earned (if any) during
such financial reporting quarter; iii) Group 1 Executives shall be paid an
amount in respect of the Milestones Component earned after December 31, 2009 (to
the extent applicable) within 15 days of having achieved the Significant
Milestone by the target completion date; and iv) Group 2 Executives shall,
within 45 days of the end of each financial reporting quarter for calendar year
2009, be paid an amount in respect of the Property EBITDAR Component earned (if
any) during such quarter up to the Maximum Quarterly Payout % (as reflected at
Exhibits 4(A) through 4(C)); provided, however, to the
extent the amount of the Property EBITDAR Component earned (if any) as measured
on an annual basis exceeds the sum of the quarterly payout amounts, such
Eligible Executives shall be entitled to an incremental payment equal to such
difference on the earlier of: i) the Audit Completion Date; and ii) the Outside
Date.  Notwithstanding any provision contained herein to the contrary,
the MSC board of directors reserves its right to, at its sole discretion,
accelerate the date of any payment for Incentive Compensation owing under the
Incentive Plan.

      

      Unless
terminated without “Cause” (as defined below), the Eligible Executive must be
employed by the Company as of December 31, 2009 in order to earn and receive
payment of any Incentive Compensation under the Incentive Plan; provided, however, any amounts
paid (prior to termination of employment) in respect of the Workload Component,
Milestones Component and/or Property EBITDAR Component shall not be subject to
disgorgement unless the Eligible Executive was terminated for
Cause.  To the extent an Eligible Executive commenced employment with
the Company after January 1, 2009 or is terminated without Cause prior to
December 31, 2009, he or she shall receive a pro rata8 share of any Incentive Compensation that the
Eligible Executive would otherwise have been eligible to earn under the
Incentive Plan for the 2009 calendar year; provided, however, such amounts
of Incentive Compensation owing (if any) will be determined and paid in
accordance with the timing and other relevant provisions set forth
herein.  The foregoing notwithstanding, the MSC board of directors
expressly reserves  the right to withhold and not pay any Incentive
Compensation otherwise owing to an Eligible Executive under the Incentive Plan
in the event such Eligible Executive was subject to any documented (in writing)
disciplinary action by the Company at any time prior to the date on which any
earned  Incentive Compensation under the Incentive Plan is scheduled
to be paid.

      

      For
purposes of the Incentive Plan, “Cause” shall mean: i) the conviction of, or
judgment against, the Eligible Executive by a civil or criminal court of
competent jurisdiction or the filing of a criminal complaint or information, for
a felony or any other offense involving embezzlement or misappropriation of
funds, or any act of moral turpitude,

      

        

      

        
        8 For
purposes of this specific provision of the Incentive Plan, the pro ration of
Incentive Compensation earned (if any) shall be calculated based on the number
of calendar days in 2009 (or other applicable period) during which the Eligible
Executive was employed by the Company divided by 365.

      

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      dishonesty
or lack of fidelity; ii) the indictment of the Eligible Executive by a state or
federal grand jury of competent jurisdiction or the filing of a criminal
complaint or information for a felony or any other offense involving
embezzlement or misappropriation of funds, or any act of moral turpitude,
dishonesty or lack of fidelity; iii) the confession by the Eligible Executive of
embezzlement or misappropriation of funds, or any act of moral turpitude,
dishonesty, lack of fidelity or that constitutes a material breach of the
Company’s policies and/or procedures; iv) the payment (or, by the operation
solely of the effect of a deductible, the failure of payment) by a surety or
insurer of a claim under a fidelity bond issued for the benefit of the Company
for a loss due to the wrongful act, or wrongful omission to act, of the Eligible
Executive; v) the denial, revocation or suspension of a license, qualification
or certificate of suitability to the Eligible Executive by any of the Gaming
Authorities; and vi) any action or failure to act by the Eligible Executive that
the Company reasonably believes, as a result of a communication or action by the
Gaming Authorities or on the basis of consultations with its gaming counsel
and/or other professional advisors, will likely cause any of the Gaming
Authorities to: (a) fail to license, qualify and/or approve the Company to own
and operate a gaming business; (b) grant any such licensing, qualification
and/or approval only upon terms and conditions that are unacceptable to the
Company; (c) significantly delay any such licensing, qualification and/or
approval process; or (d) revoke or suspend any existing
license.

      
        
           

        

        
          8

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