Document:

Exhibit 10.57

 

DIRECTOR STOCK OPTION AGREEMENT

(NON-QUALIFIED STOCK OPTION)

 

THIS DIRECTOR STOCK OPTION AGREEMENT (the “Agreement”)
is entered into and effective March 20, 2008 (the “Date of Grant”), by and
between Southwest Casino Corporation (the “Company”) and [Independent member of Board of Directors]
(the “Optionee”).

 

A.                 The Company has
adopted its 2004 Stock Incentive Plan (the “Plan”) which authorizes the Board
of Directors of the Company, or a committee as provided for in the Plan (the
Board or this committee are referred to as the “Committee” in this Agreement),
to grant incentive stock options to directors of the Company (as defined in the
Plan).

 

B.                   The Company
desires to give the Optionee an inducement to acquire a proprietary interest in
the Company and an added incentive to advance the interests of the Company by
granting to the Optionee an option to purchase shares of common stock of the
Company under the Plan.

 

C.                   Terms
stated but not otherwise defined in this Agreement have the meanings assigned
to those terms in the Plan.

 

Accordingly, the parties agree as follows:

 

1.                                      Grant of Option.

 

The Company hereby grants
to the Optionee the right, privilege, and option (the “Option”) to purchase
150,000 shares (the “Option Shares”) of the Company’s common stock, $.001 par
value (the “Common Stock”), according to the terms and subject to the
conditions stated in this Agreement and as stated in the Plan.  This Option is not intended to be an “incentive
stock option,” as that term is used in Section 422 of the Internal Revenue
Code of 1986, as amended (the “Code”).

 

2.                                      Option Exercise Price.

 

The per share price to be paid by Optionee upon
exercise of this Option will be $0.48.

 

3.                                      Duration of Option and
Time of Exercise.

 

3.1                                 Initial Period of Exercisability. 
Subject to Sections 3.2 and 3.3 below, this Option will become
exercisable with respect to the Option Shares in 12 quarterly installments
beginning on December 31, 2008 and continuing on the last day of each
fiscal quarter of the Company, as provided in the table below.  The table below states the initial dates of
exercisability of each installment and the number of Option Shares as to which
this Option will become exercisable on those dates:

 

	
  Initial Date of

  Exercisability

  	
   

  	
  Number of Option Shares

  Available for

  Exercise at each Date

  	
   

  
	
  Dec. 31, 2008

  	
   

  	
  12,500

  	
   

  
	
  Mar. 31, June 30, Sept. 30, &
  Dec. 31, 2009

  	
   

  	
  12,500

  	
   

  
	
  Mar. 31, June 30, Sept. 30, &
  Dec. 31, 2010

  	
   

  	
  12,500

  	
   

  
	
  Mar. 31, June 30, & Sept. 30

  	
   

  	
  12,500

  	
   

  

 

 

The right to exercise this Option is cumulative with
respect to the Option Shares becoming exercisable on the dates stated above;
provided, however, that in no event will this Option be exercisable after, and
this Option will become void and expire as to all unexercised Option Shares at,
5:00 p.m. (Minnesota time) on March 19, 2018 (the “Time of
Termination”).

 

3.2                                 Termination of Service.

 

(a)                                  Termination Due to Mandatory Retirement. 
If Optionee’s service with the Board of Directors of the Company is
terminated by reason of the Optionee’s mandatory retirement in accordance with
the policies of the Company and its Board of Directors, this Option will
continue to become exercisable and remain exercisable as if the Optionee
continued to serve as a Director of the Company (but not after the Time of Termination).

 

(b)                                 Termination Due to Death or Disability. 
If Optionee’s service with the Board of Directors of the Company is
terminated by reason of the Optionee’s death or Disability, this Option will
become immediately exercisable in full as of the date of death or Disability
and remain exercisable for a period of 12 months after such termination (but
not after the Time of Termination).

 

(c)                                  Termination for Reasons Other Than Death,
Disability or Retirement.  Except as provided in Section 3.3,
if Optionee’s service with the Board of Directors is terminated for any reason
other than death, Disability or mandatory retirement, this Option will remain
exercisable to the extent exercisable on the date of termination of Optionee’s
service on the Board of Directors and remain exercisable for a period of 90
days after such termination.

 

3.3                                 Change in Control.

 

(a)                                  Impact of Change in Control. 
If a Change in Control of the Company occurs whereby the acquiring
entity or successor to the Company does not assume this Option or replace it
with a substantially equivalent incentive award, then, as of the date of the
Change of Control, this Option will vest as to all shares and become
immediately exercisable in full and will remain exercisable until the Time of
Termination, regardless of whether the Optionee remains in the service of the
Company.  In addition, if a change in
control occurs, the Committee, in its sole discretion and without consent of
the Optionee, may determine that the Optionee will receive, with respect to
some or all of the Option Shares, cash in the amount of the excess of the Fair
Market Value (as defined in the Plan) of those Option Shares immediately before
the effective date of the Change in Control over the per share exercise price
of this Option.

 

(b)                                 Limitation on Change in Control Payments. 
Notwithstanding anything in this Section 3.3 to the contrary, if,
with respect to the Optionee, the acceleration of the vesting of this Option as
provided above (which acceleration could be deemed a “payment” within the
meaning of Section 280G(b)(2) of the Code), together with any other
payments that the Optionee has the right to receive from the Company or any
corporation which is a member of an “affiliated group” (as defined in Section 1504(a) of
the Code without regard to Section 1504(b) of the Code) of which the
Company is a member, would constitute a “parachute payment” (as defined in Section 280G(b)(2) of
the Code), the payments to the Optionee stated herein will be reduced to the
largest amount that will result in no portion of the payments being subject to
the excise tax 

 

2

 

imposed by Section 4999 of the Code; provided,
however, that if the Optionee is subject to a separate agreement with the
Company that expressly addresses the potential application of Sections 280G or
4999 of the Code (including, without limitation, that “payments” under such
agreement or otherwise will be reduced, that the Optionee will have the
discretion to determine which “payments” will be reduced, that such “payments”
will not be reduced or that such “payments” will be “grossed up” for tax
purposes), then this Section 3.3(b) will not apply, and any payments
to the Optionee under Section 3.3(a) of this Agreement will be
treated as payments arising under such separate agreement.

 

4.                                      Manner of Option Exercise.

 

4.1                                 Notice.  Optionee may
exercise this Option, in whole or in part from time to time, subject to the
conditions in the Plan and in this Agreement, by delivery, in person, by
facsimile or electronic transmission (if confirmed) or through the mail, to the
Company at its principal executive office (Attention: Chief Financial Officer),
of a written notice of exercise.  This
notice must (a) be in a form substantially similar to the form attached to
this Agreement as Exhibit A, or such other form as is satisfactory
to the Committee, (b) identify this Option, (c) specify the number of
Option Shares with respect to which this Option is being exercised, and (d) be
signed by the person or persons so exercising this Option.  The notice must be accompanied by payment in
full of the total purchase price of the Option Shares purchased.  If this Option is being exercised as provided
by the Plan and Section 3.2 above, by any person or persons other than the
Optionee, the notice must be accompanied by appropriate proof of right of that
person or persons to exercise this Option. 
As soon as practicable after the effective exercise of this Option, the
Optionee will be recorded on the stock transfer books of the Company as the
owner of the Option Shares purchased, and the Company will deliver to the
Optionee one or more duly issued stock certificates evidencing ownership.

 

4.2                                 Payment.  At the time
of exercise of this Option, the Optionee must pay the total purchase price of
the Option Shares to be purchased entirely in cash (including a check, bank
draft or money order, payable to the order of the Company); provided, however,
that the Committee, in its sole discretion, may allow such payment to be made,
in whole or in part, by tender of a promissory note (on terms acceptable to the
Committee in its sole discretion) or a Broker Exercise Notice or Previously
Acquired Shares, or by a combination of such methods.  If Optionee is permitted to pay the total
purchase price of this Option in whole or in part with Previously Acquired
Shares, the value of those shares will equal their Fair Market Value on the
date of exercise, in whole or in part, of this Option.

 

5.                                      Rights of Optionee;
Transferability.

 

5.1                                 Rights as a Shareholder. 
The Optionee has no rights as a shareholder with respect to the Option
Shares issuable upon exercise of this Option unless and until all conditions to
the effective exercise of this Option (including, without limitation, the
conditions stated in Sections 4 and 6 of this Agreement) have been satisfied
and the Optionee has become the holder of record of the Option Shares.  No adjustment will be made for dividends or
distributions for which the record Date precedes the date the Optionee becomes
the holder of record of the Option Shares, except as may otherwise be provided
in the Plan or determined by the Committee in its sole discretion.

 

5.2                                 Restrictions on Transfer. 
Except under testamentary will or the laws of descent and distribution
or as otherwise expressly permitted by the Plan, no right or interest of the 

 

3

 

Optionee in this Option
before exercise may be assigned or transferred, or subjected to any lien,
during the lifetime of the Optionee, either voluntarily or involuntarily,
directly or indirectly, by operation of law or otherwise.  The Optionee will, however, be entitled to
designate a beneficiary to receive this Option upon Optionee’s death, and, in
the event of the Optionee’s death, exercise of this Option (to the extent
permitted under Section 3.2(a) of this Agreement) may be made by the
Optionee’s legal representatives, heirs and legatees.

 

5.3                                 Breach of Confidentiality, Assignment of
Inventions or Non-Compete Agreements.  Notwithstanding
anything in this Agreement or the Plan to the contrary, if Optionee materially
breaches the terms of any written confidentiality, assignment of inventions or
non-compete agreement entered into with the Company or any Subsidiary, whether
such breach occurs before or after termination of the Optionee’s service to the
Company, the Committee may immediately terminate all rights of the Optionee
under the Plan and this Agreement.

 

6.                                      Securities Law and Other
Restrictions.

 

Notwithstanding any other provision of the Plan or
this Agreement, the Optionee may not sell, assign, transfer or otherwise
dispose of, any Option Shares unless (a) there is in effect with respect
to the Option Shares a registration statement under the Securities Act and any
applicable state or foreign securities laws or an exemption from such
registration, and (b) there has been obtained any other consent, approval
or permit from any other regulatory body that the Committee, in its sole
discretion, deems necessary or advisable. 
The Company may condition a sale or transfer by Optionee upon the
receipt of any representations or agreements from the parties involved, and the
placement of any legends on certificates representing Option Shares, as may be
deemed necessary by the Company in order to comply with such securities law or
other restrictions.

 

7.                                      Withholding Taxes.

 

The Company is entitled to (a) withhold and
deduct from future amounts owed to Optionee, or make other arrangements for the
collection of, all legally required amounts necessary to satisfy any federal,
state or local withholding and employment-related tax requirements attributable
to this Option including, without limitation, the grant or exercise of this
Option or a disqualifying disposition of any Option Shares, or (b) require
the Optionee promptly to remit the amount of such withholding to the Company
before acting on the Optionee’s notice of exercise of this Option.  If the Company is unable to withhold such
amounts, for whatever reason, the Optionee agrees to pay to the Company an
amount equal to the amount the Company would otherwise be required to withhold
under federal, state or local law.

 

8.                                      Adjustments.

 

If any reorganization, merger, consolidation,
recapitalization, liquidation, reclassification, stock dividend, stock split,
combination of shares, rights offering, divestiture or extraordinary dividend
(including a spin-off), or any other similar change in the corporate structure
or shares of the Company occurs, the Committee (or, if the Company is not the
surviving corporation in any such transaction, the board of directors of the
surviving corporation), in order to prevent dilution or enlargement of the
rights of the Optionee, must make appropriate adjustment to the number and kind
of securities or other property (including cash) subject to, and the exercise
price of, this Option.

 

4

 

9.                                      Subject to Plan.

 

This Option and the Option Shares granted and issued
under this Agreement have been granted and issued under, and are subject to the
terms of, the Plan.  The terms of the
Plan are incorporated by reference in this Agreement in their entirety, and the
Optionee, by execution of this Agreement, acknowledges having received a copy
of the Plan.  The provisions of this Agreement
will be interpreted as to be consistent with the Plan, and any ambiguities in
this Agreement will be interpreted by reference to the Plan.  If any provision of this Agreement is
inconsistent with the terms of the Plan, and the Plan does not permit that
provision to vary from the terms of the Plan, the terms of the Plan will
prevail.

 

10.                               Miscellaneous.

 

10.1                           Binding Effect. 
This Agreement will be binding upon the heirs, executors, administrators
and successors of the parties to this Agreement.

 

10.2                           Governing Law. 
This Agreement and all rights and obligations under this Agreement will
be construed in accordance with the Plan and governed by the laws of the State
of Minnesota, without regard to conflicts of laws provisions.  Any legal proceeding related to this
Agreement will be brought in an appropriate Minnesota court and the parties to
this Agreement consent to the exclusive jurisdiction of the court for this
purpose.

 

10.3                           Entire Agreement. 
This Agreement and the Plan state the entire agreement and understanding
of the parties to this Agreement with respect to the grant and exercise of this
Option and the administration of the Plan and supersede all prior agreements,
arrangements, plans and understandings relating to the grant and exercise of this
Option and the administration of the Plan.

 

10.4                           Amendment and Waiver. 
Other than as provided in the Plan, this Agreement may be amended,
waived, modified or canceled only by a written instrument executed by the
parties to this Agreement or, in the case of a waiver, by the party waiving
compliance.

 

The parties to this Agreement have executed this
Agreement effective the day and year first above written.

 

	
   

  	
  SOUTHWEST
  CASINO CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   Thomas E.
  Fox, President

  
	
   

  	
   

  
	
   

  	
   

  
	
  By execution of
  this Agreement,

  	
  OPTIONEE

  
	
  the Optionee
  acknowledges having

  	
   

  
	
  received a copy
  of the Plan.

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
  (Name and
  Address)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

5Exhibit 10.58

 

DIRECTOR STOCK OPTION AGREEMENT

(NON-QUALIFIED STOCK OPTION)

 

THIS DIRECTOR STOCK OPTION AGREEMENT (the “Agreement”)
is entered into and effective March 20, 2008 (the “Date of Grant”), by and
between Southwest Casino Corporation (the “Company”) and David H. Abramson (the
“Optionee”).

 

A.                 The Company has
adopted its 2004 Stock Incentive Plan (the “Plan”) which authorizes the Board
of Directors of the Company, or a committee as provided for in the Plan (the
Board or this committee are referred to as the “Committee” in this Agreement),
to grant incentive stock options to directors of the Company (as defined in the
Plan).

 

B.                   The Company
desires to give the Optionee an inducement to acquire a proprietary interest in
the Company and an added incentive to advance the interests of the Company by
granting to the Optionee an option to purchase shares of common stock of the
Company under the Plan.

 

C.                   Terms
stated but not otherwise defined in this Agreement have the meanings assigned
to those terms in the Plan.

 

Accordingly, the parties agree as follows:

 

1.                                      Grant of Option.

 

The Company hereby grants
to the Optionee the right, privilege, and option (the “Option”) to purchase
75,000 shares (the “Option Shares”) of the Company’s common stock, $.001 par
value (the “Common Stock”), according to the terms and subject to the
conditions stated in this Agreement and as stated in the Plan.  This Option is not intended to be an “incentive
stock option,” as that term is used in Section 422 of the Internal Revenue
Code of 1986, as amended (the “Code”).

 

2.                                      Option Exercise Price.

 

The per share price to be paid by Optionee upon
exercise of this Option will be $0.48.

 

3.                                      Duration of Option and
Time of Exercise.

 

3.1                                 Initial Period of Exercisability. 
Subject to Sections 3.2 and 3.3 below, this Option will become
exercisable with respect to the Option Shares in 12 quarterly installments
beginning on December 31, 2008 and continuing on the last day of each
fiscal quarter of the Company, as provided in the table below.  The table below states the initial dates of
exercisability of each installment and the number of Option Shares as to which
this Option will become exercisable on those dates:

 

	
  Initial Date of

  Exercisability

  	
   

  	
  Number of Option Shares

  Available for

  Exercise at each Date

  	
   

  
	
  Dec. 31, 2008

  	
   

  	
  6,250

  	
   

  
	
  Mar. 31, June 30, Sept. 30, &
  Dec. 31, 2009

  	
   

  	
  6,250

  	
   

  
	
  Mar. 31, June 30, Sept. 30, &
  Dec. 31, 2010

  	
   

  	
  6,250

  	
   

  
	
  Mar. 31, June 30, & Sept. 30

  	
   

  	
  6,250

  	
   

  

 

The right to exercise this Option is cumulative with
respect to the Option Shares becoming exercisable on the dates stated above;
provided, however, that in no event will this Option be 

 

 

exercisable after, and this Option will become void
and expire as to all unexercised Option Shares at, 5:00 p.m. (Minnesota
time) on March 19, 2018 (the “Time of Termination”).

 

3.2                                 Termination of Service.

 

(a)                                  Termination Due to Mandatory Retirement. 
If Optionee’s service with the Board of Directors of the Company is
terminated by reason of the Optionee’s mandatory retirement in accordance with
the policies of the Company and its Board of Directors, this Option will
continue to become exercisable and remain exercisable as if the Optionee
continued to serve as a Director of the Company (but not after the Time of
Termination).

 

(b)                                 Termination Due to Death or Disability. 
If Optionee’s service with the Board of Directors of the Company is
terminated by reason of the Optionee’s death or Disability, this Option will
become immediately exercisable in full as of the date of death or Disability
and remain exercisable for a period of 12 months after such termination (but
not after the Time of Termination).

 

(c)                                  Termination for Reasons Other Than Death,
Disability or Retirement.  Except as provided in Section 3.3,
if Optionee’s service with the Board of Directors is terminated for any reason
other than death, Disability or mandatory retirement, this Option will remain
exercisable to the extent exercisable on the date of termination of Optionee’s
service on the Board of Directors and remain exercisable for a period of 90
days after such termination.

 

3.3                                 Change in Control.

 

(a)                                  Impact of Change in Control. 
If a Change in Control of the Company occurs whereby the acquiring
entity or successor to the Company does not assume this Option or replace it
with a substantially equivalent incentive award, then, as of the date of the
Change of Control, this Option will vest as to all shares and become
immediately exercisable in full and will remain exercisable until the Time of
Termination, regardless of whether the Optionee remains in the service of the
Company.  In addition, if a change in
control occurs, the Committee, in its sole discretion and without consent of
the Optionee, may determine that the Optionee will receive, with respect to
some or all of the Option Shares, cash in the amount of the excess of the Fair
Market Value (as defined in the Plan) of those Option Shares immediately before
the effective date of the Change in Control over the per share exercise price
of this Option.

 

(b)                                 Limitation on Change in Control Payments. 
Notwithstanding anything in this Section 3.3 to the contrary, if,
with respect to the Optionee, the acceleration of the vesting of this Option as
provided above (which acceleration could be deemed a “payment” within the
meaning of Section 280G(b)(2) of the Code), together with any other
payments that the Optionee has the right to receive from the Company or any
corporation which is a member of an “affiliated group” (as defined in Section 1504(a) of
the Code without regard to Section 1504(b) of the Code) of which the
Company is a member, would constitute a “parachute payment” (as defined in Section 280G(b)(2) of
the Code), the payments to the Optionee stated herein will be reduced to the
largest amount that will result in no portion of the payments being subject to
the excise tax imposed by Section 4999 of the Code; provided, however,
that if the Optionee is subject to a separate agreement with the Company that
expressly addresses the potential 

 

2

 

application of Sections 280G or 4999 of the Code
(including, without limitation, that “payments” under such agreement or
otherwise will be reduced, that the Optionee will have the discretion to
determine which “payments” will be reduced, that such “payments” will not be
reduced or that such “payments” will be “grossed up” for tax purposes), then
this Section 3.3(b) will not apply, and any payments to the Optionee
under Section 3.3(a) of this Agreement will be treated as payments
arising under such separate agreement.

 

4.                                      Manner of Option Exercise.

 

4.1                                 Notice.  Optionee may
exercise this Option, in whole or in part from time to time, subject to the
conditions in the Plan and in this Agreement, by delivery, in person, by
facsimile or electronic transmission (if confirmed) or through the mail, to the
Company at its principal executive office (Attention: Chief Financial Officer),
of a written notice of exercise.  This
notice must (a) be in a form substantially similar to the form attached to
this Agreement as Exhibit A, or such other form as is satisfactory
to the Committee, (b) identify this Option, (c) specify the number of
Option Shares with respect to which this Option is being exercised, and (d) be
signed by the person or persons so exercising this Option.  The notice must be accompanied by payment in
full of the total purchase price of the Option Shares purchased.  If this Option is being exercised as provided
by the Plan and Section 3.2 above, by any person or persons other than the
Optionee, the notice must be accompanied by appropriate proof of right of that
person or persons to exercise this Option. 
As soon as practicable after the effective exercise of this Option, the
Optionee will be recorded on the stock transfer books of the Company as the
owner of the Option Shares purchased, and the Company will deliver to the
Optionee one or more duly issued stock certificates evidencing ownership.

 

4.2                                 Payment.  At the time
of exercise of this Option, the Optionee must pay the total purchase price of the
Option Shares to be purchased entirely in cash (including a check, bank draft
or money order, payable to the order of the Company); provided, however, that
the Committee, in its sole discretion, may allow such payment to be made, in
whole or in part, by tender of a promissory note (on terms acceptable to the
Committee in its sole discretion) or a Broker Exercise Notice or Previously
Acquired Shares, or by a combination of such methods.  If Optionee is permitted to pay the total
purchase price of this Option in whole or in part with Previously Acquired
Shares, the value of those shares will equal their Fair Market Value on the
date of exercise, in whole or in part, of this Option.

 

5.                                      Rights of Optionee;
Transferability.

 

5.1                                 Rights as a Shareholder. 
The Optionee has no rights as a shareholder with respect to the Option
Shares issuable upon exercise of this Option unless and until all conditions to
the effective exercise of this Option (including, without limitation, the
conditions stated in Sections 4 and 6 of this Agreement) have been satisfied
and the Optionee has become the holder of record of the Option Shares.  No adjustment will be made for dividends or
distributions for which the record Date precedes the date the Optionee becomes
the holder of record of the Option Shares, except as may otherwise be provided
in the Plan or determined by the Committee in its sole discretion.

 

5.2                                 Restrictions on Transfer. 
Except under testamentary will or the laws of descent and distribution
or as otherwise expressly permitted by the Plan, no right or interest of the
Optionee in this Option before exercise may be assigned or transferred, or
subjected to any lien, during the lifetime of the Optionee, either voluntarily
or involuntarily, directly or indirectly, by 

 

3

 

operation of law or
otherwise.  The Optionee will, however,
be entitled to designate a beneficiary to receive this Option upon Optionee’s
death, and, in the event of the Optionee’s death, exercise of this Option (to
the extent permitted under Section 3.2(a) of this Agreement) may be
made by the Optionee’s legal representatives, heirs and legatees.

 

5.3                                 Breach of Confidentiality, Assignment of
Inventions or Non-Compete Agreements. 
Notwithstanding anything in this Agreement or the Plan to the contrary,
if Optionee materially breaches the terms of any written confidentiality,
assignment of inventions or non-compete agreement entered into with the Company
or any Subsidiary, whether such breach occurs before or after termination of
the Optionee’s service to the Company, the Committee may immediately terminate
all rights of the Optionee under the Plan and this Agreement.

 

6.                                      Securities Law and Other
Restrictions.

 

Notwithstanding any other provision of the Plan or this
Agreement, the Optionee may not sell, assign, transfer or otherwise dispose of,
any Option Shares unless (a) there is in effect with respect to the Option
Shares a registration statement under the Securities Act and any applicable
state or foreign securities laws or an exemption from such registration, and (b) there
has been obtained any other consent, approval or permit from any other
regulatory body that the Committee, in its sole discretion, deems necessary or
advisable.  The Company may condition a
sale or transfer by Optionee upon the receipt of any representations or
agreements from the parties involved, and the placement of any legends on
certificates representing Option Shares, as may be deemed necessary by the
Company in order to comply with such securities law or other restrictions.

 

7.                                      Withholding Taxes.

 

The Company is entitled to (a) withhold and
deduct from future amounts owed to Optionee, or make other arrangements for the
collection of, all legally required amounts necessary to satisfy any federal,
state or local withholding and employment-related tax requirements attributable
to this Option including, without limitation, the grant or exercise of this
Option or a disqualifying disposition of any Option Shares, or (b) require
the Optionee promptly to remit the amount of such withholding to the Company
before acting on the Optionee’s notice of exercise of this Option.  If the Company is unable to withhold such
amounts, for whatever reason, the Optionee agrees to pay to the Company an
amount equal to the amount the Company would otherwise be required to withhold
under federal, state or local law.

 

8.                                      Adjustments.

 

If any reorganization, merger, consolidation,
recapitalization, liquidation, reclassification, stock dividend, stock split,
combination of shares, rights offering, divestiture or extraordinary dividend
(including a spin-off), or any other similar change in the corporate structure
or shares of the Company occurs, the Committee (or, if the Company is not the
surviving corporation in any such transaction, the board of directors of the
surviving corporation), in order to prevent dilution or enlargement of the
rights of the Optionee, must make appropriate adjustment to the number and kind
of securities or other property (including cash) subject to, and the exercise
price of, this Option.

 

4

 

9.                                      Subject to Plan.

 

This Option and the Option Shares granted and issued
under this Agreement have been granted and issued under, and are subject to the
terms of, the Plan.  The terms of the
Plan are incorporated by reference in this Agreement in their entirety, and the
Optionee, by execution of this Agreement, acknowledges having received a copy
of the Plan.  The provisions of this
Agreement will be interpreted as to be consistent with the Plan, and any
ambiguities in this Agreement will be interpreted by reference to the
Plan.  If any provision of this Agreement
is inconsistent with the terms of the Plan, and the Plan does not permit that
provision to vary from the terms of the Plan, the terms of the Plan will
prevail.

 

10.                               Miscellaneous.

 

10.1                           Binding Effect. 
This Agreement will be binding upon the heirs, executors, administrators
and successors of the parties to this Agreement.

 

10.2                           Governing Law. 
This Agreement and all rights and obligations under this Agreement will
be construed in accordance with the Plan and governed by the laws of the State
of Minnesota, without regard to conflicts of laws provisions.  Any legal proceeding related to this
Agreement will be brought in an appropriate Minnesota court and the parties to
this Agreement consent to the exclusive jurisdiction of the court for this
purpose.

 

10.3                           Entire Agreement. 
This Agreement and the Plan state the entire agreement and understanding
of the parties to this Agreement with respect to the grant and exercise of this
Option and the administration of the Plan and supersede all prior agreements,
arrangements, plans and understandings relating to the grant and exercise of
this Option and the administration of the Plan.

 

10.4                           Amendment and Waiver. 
Other than as provided in the Plan, this Agreement may be amended,
waived, modified or canceled only by a written instrument executed by the
parties to this Agreement or, in the case of a waiver, by the party waiving
compliance.

 

The parties to this Agreement have executed this
Agreement effective the day and year first above written.

 

	
   

  	
  SOUTHWEST
  CASINO CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   Thomas E. Fox, President

  
	
   

  	
   

  
	
   

  	
   

  
	
  By execution of
  this Agreement,

  	
  OPTIONEE

  
	
  the Optionee
  acknowledges having

  	
   

  
	
  received a copy
  of the Plan.

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   David H. Abramson 

  
	
   

  	
  (Name and
  Address)

  
	
   

  	
   Parkdale Plaza

  
	
   

  	
   1660 South Highway 100, Suite 500

  
	
   

  	
   St. Louis Park, MN 55416

  

 

5

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