Document:

Exhibit
10.1

EMPLOYMENT
AGREEMENT

This
Employment Agreement is made and entered into this 30th day of October, 2006, by and between Gary Gregg (“Employee”) and 155 East
Tropicana, LLC dba  Hooters Casino Hotel
(“Company”).

WHEREAS,
the Company has offered and the Employee has accepted a position of employment
as Chief Operating Officer;

NOW,
THEREFORE, for good and valuable consideration and in consideration of the
mutual promises and mutual covenants contained herein, Company and Employee
agree as follows:

1.             EMPLOYMENT TERM.

This
Agreement shall commence as of the 30th day of October, 2006, and continue until the
29th day of October, 2009, unless terminated as
hereinafter provided.  The Company may
renew this Agreement by providing Employee with its written intention to do so
within thirty (30) days prior to the expiration of the then current term.

2.             DUTIES.

Employee
will perform the duties of Chief Operating Officer in accordance with the
Company’s Operating Agreement and Joint Venture Agreement and will perform such
other duties and services as required by the Company’s Management Board and/or
Chief Executive Officer.  Employee shall
report directly to the Company’s Chief Executive Officer.

3.             OTHER SERVICES AND ACTIVITIES.

Employee
will devote substantially all of his efforts to the Company’s business.  During the term of this Agreement, Employee
will not engage in any other employment or business activity or hold any office
or a position in other companies or organizations that would limit the fulfillment
of his duties as Chief Operating Officer or that would pose a conflict of
interest with the Company’s business. 
Employee will obtain express written consent of the Company’s Chief
Executive Officer before engaging in any such activity.

4.             COMPENSATION AND BENEFITS.

4.1           Base Salary

Employee
will be paid an annual base salary of Two Hundred Fifty Thousand Dollars and
00/100 Cents ($250,000.00), payable in biweekly installments of Nine Thousand
Six Hundred Fifteen Dollars and 39/100 Cents ($9,615.39) in accordance with the
Company’s regular payroll practices.  Any
subsequent increases in base salary shall be determined solely at the
discretion of the Company’s Management Board.

 1
 

 

4.2           Annual Performance Bonus

Employee
will also be eligible to receive an Annual Performance Bonus (“APB”) for the
fiscal year beginning January 1, 2007 to December 31, 2007, and each year the
contract continues, based on the Company’s performance and EBITDA once the
following thresholds have been met:

	
  EBIDTA

  	
   

  	
  Bonus Amount

  	
   

  
	
  $15 million but less
  than $18 million

  	
   

  	
  $

  	
  100,000.00

  	
   

  
	
  $18 million but less
  than $21 million

  	
   

  	
  $

  	
  150,000.00

  	
   

  
	
  $21 million but less
  than $24 million

  	
   

  	
  $

  	
  200,000.00

  	
   

  
	
  $24 million or higher

  	
   

  	
  $

  	
  250,000.00

  	
   

  

 

In
order to earn the APB, Employee must be employed by the Company as of December
31, 2007.  The APB, if earned, will be
paid following the close of the Company’s books each fiscal year.  The Company’s fiscal year end is December
31.  It is expected that the APB will be
paid by February 28 of the year following the close of the fiscal year.

4.3           Benefit Plans

Employee
is eligible to enroll in and participate in the Company’s benefit plans (i.e.,
group health insurance, 401(k), etc.) to the extent such benefits are regularly
offered to similarly situated executives of the Company.  Employee’s participation in such benefit
plans shall be governed by the applicable guidelines or parameters set for each
plan.  To the extent that the Company
alters, adds to or discontinues any of its benefit plans during the term of
this Agreement, such changes shall also be applicable to Employee.

5.             ILLNESS OR DISABILITY OF
EMPLOYEE.

If
Employee is unable to perform his duties for the Company for a period of more
than ninety (90) days, the Company may terminate this Agreement upon not less
than thirty (30) days written notice to the Employee.  In the event of such termination, all of the
Company’s obligations hereunder will terminate immediately.

The
Company agrees to make available to Employee a Disability Plan to provide for
partial salary continuation in the circumstance where Employee is unable to
perform services for the Company for a period in excess of ninety (90) days,
subject to the terms and conditions of the plan obtained.

6.             DEATH OF EMPLOYEE.

This
Agreement shall terminate immediately upon the death of the Employee.  If Employee dies during the term of this
Agreement, the Company will pay to Employee’s estate the compensation that
would otherwise be payable to Employee through the end of the month of Employee’s
death.

 2
 

 

7.             TERMINATION FOR CAUSE.

The
Company may terminate this Agreement and all of its obligations hereunder upon
occurrence of any of the following events: 
(a) Employee’s material breach of this Agreement; (b) Employee’s failure
or inability to perform his duties within the expectations of the Company; (c)
Employee’s conviction of a felony or any other crime involving moral turpitude
or dishonesty which, in the good faith opinion of the Company, would impair
Employee’s ability to perform his duties or the Company’s business reputation;
(d) Employee’s failure or refusal to comply with the Company’s policies,
standards or regulations; (e) Employee’s unauthorized disclosure of the Company’s
trade secrets and/or other confidential business information; (f) Employee’s
breach of his duty of loyalty; (g) Employee’s act of fraud, misrepresentation,
theft or embezzlement or the misappropriation of Company assets; or (h)
Employee’s failure to secure and/or maintain his required licenses by
government agencies with jurisdiction over the Company’s business.

8.             TERMINATION WITHOUT CAUSE.

Should
the Company terminate Employee without cause during the term of this Agreement,
the total amount owing of compensation, benefits, and wages shall be equal to
six (6) months of base salary at the then current rate.

9.             TERMINATION BY EMPLOYEE.

Should
Employee desire to terminate employment with the Company prior to the
expiration of the term of this Agreement, Employee shall give sixty (60) days
advance written notice to the Company. 
In the event Employee terminates employment before the expiration of the
term of this Agreement and fails to give the required amount of notice,
Employee will forfeit his interest in the APB.

10.          CONFIDENTIAL INFORMATION.

Employee
agrees that he will not use or disclose (directly or indirectly) any
Confidential Information and Trade Secrets of the Company whether in written,
verbal, or, model form, at any time or in any manner, except as required and
authorized by the Company in the course of Employee’s employment with the
Company.  The obligations of this
Agreement are continuing and survive the termination of Employee’s employment
relationship with the Company.  Employee
acknowledges and agrees that such trade secrets and other confidential information
constitute the Company’s sole and exclusive property.  For purposes of this Paragraph, the term “Confidential
Information and Trade Secrets” refers to any information that is not generally
known to persons engaged in business similar to that conducted or contemplated
by the Company and includes, without limitation:  know how, trade secrets, business plans,
copyrights, inventions, patents, intellectual property, data, process, process
parameters, databases, methods, 

 3
 

 

practices,
products, product design information, research and development data, financial
records, operational manuals, pricing, technical plans, computer programs,
customer information, customer lists, price lists, supplier lists, marketing
plans, financial information, and/or all other compilations of information
which relate to the business of the Company, and any other proprietary material
of the Company, which have not been released by the Company to the general
public.

Upon
termination of his employment, Employee shall turn over to the Company the
originals, plus all copies, of any and all files, contact lists, phone books,
papers, notes, price lists, customer contracts, bids, customer lists, files,
notebooks, books, memoranda, drawings, or other documents made, compiled by or
delivered to him concerning any customer served by the Company or any product,
apparatus, or process manufactured, used, developed or investigated by the
Company or containing any Confidential Information or Trade Secrets or
otherwise relating to Employee’s performance of duties under this
Agreement.  Employee further acknowledges
and agrees that all such documents are the Company’s sole and exclusive
property.

11.          INDEMNIFICATION.

Employee
will keep, save, protect, defend, indemnify and hold the Company harmless from
and against any and all costs, claims, expenses, damages, or deficiencies
resulting from any misrepresentation, breach, default or non-fulfillment of the
terms of this Agreement either made or caused by Employee.

12.          DISPUTE RESOLUTION.

Except
for a claim by a party for injunctive relief, any dispute or difference of
opinion between the parties involving the meaning, interpretation, and
application of any provision of this Agreement, including any dispute which may
arise in the future, shall be adjusted exclusively through mediation followed
by binding arbitration in Las Vegas, Nevada. 
The parties agree to first select a neutral mediator to mediate their
dispute, and further agree that if no agreement can be reached, they shall
request a panel of mediators from the regional office of the American
Arbitration Association with jurisdiction over Las Vegas, Nevada.  Should mediation fail to resolve their
dispute, the parties shall attempt to mutually select an arbitrator, and
further agree that if no agreement can be reached, they shall request a panel
of 15 arbitrators from the Mountain States Employment Panel from the regional
office of the American Arbitration Association with jurisdiction over Las
Vegas, Nevada.  The Mediator or
Arbitrator shall be selected by the mutual strike method; a coin toss will
determine the first strike.  The
Commercial Arbitration Rules and Mediation Procedures of the AAA will apply,
except that no dispute will be submitted to Expedited Arbitration or Large,
Complex Case Arbitration without the consent of both parties.  The award of the Arbitrator shall be final
and binding on the parties.  The
Arbitrator shall have the authority to determine whether the grievant has
proven his or its case by a preponderance of the evidence, and the Arbitrator
shall have no authority, jurisdiction, or power to amend, modify, nullify, or
add to the provisions of this Agreement. 
Arbitration costs and attorney’s fees shall be borne by each respective
party.  No request to mediate or
arbitrate will be entertained or processed unless it is received in writing by
the opposing party to this 

 4
 

 

Agreement within
ninety (90) calendar days from the time the aggrieved knew or could have
reasonably learned of the breach.  A
failure to timely file a claim will render such claim moot.

To
the extent that the AAA Commercial Arbitration Rules conflict with this
Paragraph, this Paragraph shall govern.

13.          NOTICES.

Any
notice required or desired to be given under this Agreement by either party to
the other shall be in writing and may be effective by personal delivery or by
registered or certified mail at the addresses listed below or at such other
addresses as either party may notify the other:

	
  A.

  	
   

  	
  If to the Company, to:

  	
   

  	
  Mr. Neil Kiefer

  
	
   

  	
   

  	
   

  	
   

  	
  Hooters Management Corporation

  
	
   

  	
   

  	
   

  	
   

  	
  107 Hampton Road, 2nd Floor

  
	
   

  	
   

  	
   

  	
   

  	
  Clearwater, Florida 33759

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B.

  	
   

  	
  If to the Employee, to:

  	
   

  	
  Mr. Gary Gregg

  
	
   

  	
   

  	
   

  	
   

  	
  5204 Jessica Joy St.

  
	
   

  	
   

  	
   

  	
   

  	
  Las Vegas NV 89149

  

 

Notices personally
delivered will be deemed effective upon receipt.  Notices sent by registered or certified mail
will be deemed effective three (3) days after mailing.

14.          ENFORCEMENT.

This
Agreement shall be construed in accordance with and governed for all purposes
by the laws of the State of Nevada.  In
case any one or more provisions contained in this Agreement shall, for any
reason, be held to be invalid, illegal, or unenforceable in any respect, such
invalidity, illegality, or unenforceability shall not affect any other
provision of this Agreement, but this Agreement shall be construed as if such
invalid, illegal, or unenforceable provision had never been contained
herein.  If, moreover, any one or more of
the provisions contained in this Agreement shall for any reason be held to be
excessively broad as to time, duration, geographical scope, activity or
subject, it shall be construed, by limiting and reducing it, so as to be
enforceable to the maximum extent compatible with the applicable law as it
shall then appear.

15.          AMENDMENTS.

This
Agreement may be amended or modified only by a writing executed and agreed upon
by both parties.

 5
 

 

16.          WAIVER.

Waiver
by either party of any term or condition of this Agreement or any breach hereof
will not operate or be construed as a waiver of any other term or condition or
subsequent breach.  No waiver shall be
binding unless executed in writing by the party making the waiver.

17.          ASSIGNMENT.

Employee
acknowledges that his services are unique and personal and, accordingly,
Employee may not assign his rights or delegate his duties and obligations under
this Agreement.  The Company’s rights and
obligations under this Agreement will inure to the benefit of, and be binding
upon, the Company’s successors and assigns.

18.          MERGER.

This
Agreement constitutes the entire agreement of the parties and supersedes all
prior agreements, arrangements and communications between the parties, whether
oral or written, express or implied.

19.          HEADINGS.

The
headings of the Paragraphs of this Agreement are for convenience only and shall
not affect the construction or interpretation of any of its provisions.

20.          REVIEW/UNDERSTANDING OF AGREEMENT.

Each
party to this Agreement has reviewed the Agreement with legal counsel of their
choice and has had the opportunity to modify or eliminate any ambiguous
provisions.  Therefore, it is agreed that
each party hereto is considered a drafter of this Agreement and that the
contract interpretation rule which holds ambiguities are to be interpreted
against the original drafter of a document is expressly waived by the parties.

21.          COUNTERPARTS.

This
Agreement may be executed in any number of counterparts conformed by facsimile
signatures transmitted by telephone, each of which shall be deemed a duplicate
original.

155 EAST
TROPICANA, LLC dba

	
  HOOTERS CASINO HOTEL

  	
   

  	
  GARY GREGG

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BY

  	
   

  	
  /s/ Neil G. Kiefer

  	
   

  	
  BY:

  	
  /s/ Gary A. Gregg

  
	
  ITS:

  	
   

  	
  Chief Executive Officer

  	
   

  	
   

  	
   

  
	
  DATE:

  	
   

  	
  October 23, 2006

  	
   

  	
  DATE:

  	
  October 23, 2006

  

 

 6Exhibit
10.2

EXECUTIVE
EMPLOYMENT AGREEMENT

(“Agreement”)

EXECUTIVE
EMPLOYMENT AGREEMENT, effective October 31, 2006 (“Effective Date”), by and
between 155 E. Tropicana LLC (the “Company”) and Michael J. Hessling (the “Executive”).

PREAMBLE

Per Section 9.2 of
the Amended and Restated Operating Agreement of 155 East Tropicana LLC, certain
decisions are entitled “Unanimous Board Decisions”. The Management Board shall
have the power and authority, upon the affirmative vote or written consent of
all of the Board members to make certain decisions including the following:

1) Establish
policies, job descriptions, salaries, and terms of employment, procedures and
guidelines for the Chief Executive Officer, Chief Operating Officer and Chief
Financial Officer of the Company to follow and have the sole authority to offer
a job to any Person for either position and to fire or otherwise terminate such
Person, and

2) Establish any
Officers of the Company and to delegate to such officers management and
operational responsibilities, including the power and authority to bind the
Company and appoint Persons to act as such officers and remove Persons there
from.

On August 16th, 2004, by unanimous written
consent, the Management Board appointed Michael J. Hessling as Chief Operating
Officer of the Company.

WHEREAS, the
Company desires that Executive resign as Chief Operating Officer, but desires
to employ the Executive as President, and the Executive desires to be so
employed by the Company, from and after the date of this Agreement.

NOW, THEREFORE, in
consideration of the mutual covenants contained herein, the parties agree as
follows:

ARTICLE I

EMPLOYMENT
DUTIES AND BENEFITS

Section
1.1            Employment.

The Company hereby
employs the Executive as President of the Company. The Executive accepts such
employment and agrees to perform the duties and responsibilities assigned to
him under this Agreement.

Section
1.2            Duties and Responsibilities.

During the period
of employment, Executive agrees to serve as the President of the Company and such
other offices and directorships of the Company and of its subsidiaries and
related companies  (collectively “affiliates”)  to which he may be elected or appointed, and
to perform any mutually agreed upon, reasonable and appropriate duties 

 1
 

 

as may be requested
of him by the  Management Board and/or
Chief Executive Officer in accordance with this Agreement and in compliance
with all applicable laws and regulations.

Section
1.3            Working Facilities; Location.

The Executive
shall be furnished with facilities and services suitable to his position and
adequate for the performance of his duties under this Agreement. The principal
place of performance by Executive of his duties hereunder shall be at the
offices of the Company in Las Vegas Nevada or at such other location as may
reasonable be requires to travel outside that area in the performance of
Executive responsibilities.

Section
1.4            Benefits Plan.

From the effective
date of this agreement, the Executive shall be entitled to participate in any
benefit plans provided to senior management of the Company.

Section
1.5            Expenses.

The Executive is
authorized to incur reasonable expenses for promoting the business of the
Company in all respects, including expenses for entertainment, travel and
similar items. The Company will promptly reimburse the Executive for all such
expenses upon the presentation by the Executive, from time-to-time, of an
itemized account of such expenditures.

ARTICLE II

COMPENSATION

Section
2.1            Base Salary. 

The Company shall
pay to the Executive a Base Salary of $275,000 per year payable in accordance
with the Company’s payroll and withholding policies.

Section
2.2            Bonus and Bonus Plan Participation.

If the Management
Board establishes a Bonus program for its Senior Management Team, the Executive
will be entitled to participate in the program. If the goals and performance
criteria set for the Executive are met for a particular year, the Executive
shall be entitled to a Bonus as determined in the discretion of the Company’s
Management Board or Compensation Committee.

ARTICLE III

TERM OF EMPLOYMENT AND TERMINATION

Section
3.1            Term.

Executive will
continue to serve as President of the Company for a period of one year from the
date of this agreement.

Section
3.2            Termination by the Company.

The Company may
terminate the Executive’s employment, at any time.

 2
 

 

Upon the date of
termination of the Executive’s employment pursuant to this Section 3.2 the
company shall be responsible for compensating the Executive for all salary due
for balance of the entire term of this agreement, vacation time not taken and
un-reimbursed expenses.

If the Executive
is terminated by the Company, the Company may elect to pay the balance due as a
lump sum or in normal bi-weekly payroll amounts. The Executive will be entitled
to continue to receive all health, medical, and life insurance benefits for the
balance of the term of this agreement, plus all COBRA benefits he is entitled
to under applicable laws.

Section
3.3            Termination upon Death of the Executive.

In Addition to any
other provision relation to termination, this agreement shall terminate upon
the Executive’s death. In such event, all unpaid compensation, compensation for
vacation time not taken by the Executive and all expense reimbursements due to
the Executive shall be paid to the Executive’s estate.

Section
3.4            Termination by the Executive.

This Agreement may
be terminated by the Executive upon at least 30 days prior written notice, in
which event the Executive shall be entitled to salary compensation only during
the notice period and no pro rated bonus shall be paid or payable.

Section
3.5            Other

After the
Executives employment terminates, if requested by EW Common, the Executive will
function as EW Owners Representative. The Owners Representative will be
provided an office on property and afforded access to all records and personnel
of the Company as permitted under Nevada law and afforded to any other
Management Board Member. The Owners Representative will have no authority other
than what is granted other members of the Management Board.

ARTICLE IV

CONFIDENTIALLY AND COMPETITION

Section
4.1            Further
Obligation of the Executive During and After Employment.

(a)           The Executive agrees that while
employed under this Agreement, he will not engage in any business activities
which are or may be competitive with, or which might place him in a competing
position to that of the Company except as authorized by the Company’s Board of
Directors in its reasonable discretion.

(b)           The Executive realizes that during
the course of his employment, the Executive will have produced and/or have
access to confidential business plans, information, business opportunity
records, notebooks, date, marketing strategies, trade secrets, customer  lists and accounts lists of the Company and
its affiliates (“Confidential Information”). Therefore, during or subsequent to
his employment by the Company, or 

 3
 

 

by an affiliate,
the Executive agrees to hold in confidence and not to directly or indirectly
disclose or use or copy or make lists of any such confidential information,
except to the extent authorized by the Company in writing. All records, files,
business plans, documents, equipment and the like, or copies thereof, relating
to Company’s business, or the business of an affiliated company, which the
Executive shall prepare, or use, or come into contact with, shall remain the
sole property of the Company, or of an affiliated company, and shall not be
removed from the Company’s or the affiliated company’s premises without its
written consent, and shall be  promptly returned
to the Company upon termination or resignation of employment with the  Company or its affiliated companies.

(c)           Because of his employment by the
Company, the Executive will have access to secrets and confidential information
about the Company, its business plans, its customers, its business
opportunities, its expansion pans into other geographic areas and its methods
of doing business. The Executive agrees that for the Term of this Agreement and
an additional period of six months he will not take any actions which are
calculated to persuade any employee, customer, vendor or supplier of the
Company to terminate or modify any adverse manner his or its association with
the Company.

ARTICLE V

DISABILITY AND ILLNESS

Section
5.1            Disability
and Salary Continuation.

If the Executive
becomes totally disabled during the term of this Agreement, he will be entitled
to the same benefits afforded all other senior executives under any disability
programs the company may have in place.

ARTICLE VI

GENERAL MATTERS

Section
6.1            Governing Law.

This Agreement
shall be governed by the laws of the State of Nevada and shall be construed in
accordance therewith.

Section
6.2            No Waiver.

No provision of
this Agreement may be waived except by an agreement in writing signed by the
waiving party. A waiver of any term or provision shall no be construed as a
waiver of any other term or provision.

Section
6.3            Amendment.

This Agreement may
be amended, altered or revoked at a time in whole or in part, by filling with
this Agreement a written instrument setting forth such changes, signed by each
of the parties.

 4
 

 

Section
6.4            Benefit.

This Agreement
shall be binding upon the Executive and the Company, and shall not be
assignable by either party without the other parties written consent.

Section
6.5            Severability.

If any provision
of this Agreement is declared by any court of competent jurisdiction to be
invalid for any reason, such invalidity shall not affect the remaining
provision. On the contrary, such remaining provision shall be fully severable,
and this Agreement shall be construed and enforced as if such invalid provision
had not been included in the Agreement.

Section
6.6            Effective Date.

The effective date
of this Agreement shall be October 31st, 2006.

Section
6.7            Arbitration.

The Company and
the Executive expressly agree that all disputes arising out of this Agreement
shall be resolve by arbitration in accordance with the following provision.
Either party must demand in writing such arbitration within 30 days after
controversy arises by sending a notice to arbitrate to both the other party and
to any recognized and reputable alternative dispute resolution firm. The
parties will select by mutual agreement the arbitrator or arbitrators
(hereinafter collective referred to as “arbitrator”) to hear and resolve the
controversy. The controversy shall then be arbitrated pursuant to the rules
promulgated by such firm at offices located in Las Vegas NV. The express terms
of this Agreement and the laws of the State of Nevada shall govern the arbitrator’s
decision and shall be final and binding on the parties and shall bar any suit,
action, or proceeding instituted in any federal, state or local court or
administrative tribunal. Notwithstanding the preceding sentence, the arbitrator’s
judgment may be entered in any court or competent jurisdiction. These
arbitration shall survive the termination of this Agreement.

In witness
whereof, the undersigned have executed this agreement as of October 31, 2006.

155 E. Tropicana
LLC

	
  By:

  	
   

  	
  /s/ Neil Kiefer

  	
   

  
	
   

  	
   

  	
  Neil Kiefer, CEO

  
	
   

  	
   

  	
   

  
	
  Executive:

  	
   

  	
  /s/ Michael J. Hessling

  	
   

  
	
   

  	
   

  	
  Michael J. Hessling

  
							

 

 5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]