Document:

Exhibit 10.2

 

EMPLOYMENT AND NON-COMPETE
AGREEMENT

 

DOVER DOWNS GAMING &
ENTERTAINMENT, INC.

 

AND

 

KLAUS M. BELOHOUBEK

 

 

THIS AGREEMENT, is by and between Dover Downs Gaming
& Entertainment, Inc. (the “Company”) and Klaus M. Belohoubek (the
“Executive”) and is effective as of this 16th day of June, 2004 (the “Effective
Date”).

 

W I
T N E S S E T H:

 

WHEREAS, the Executive is currently employed by the
Company or an affiliate thereof in an executive position; and

 

WHEREAS, the Executive has, in the course of his
employment, developed relationships with employees and customers of the
Company, and learned valuable and sensitive information concerning the
Company’s operations, policies and procedures; and

 

WHEREAS, the Executive has, in the course of his
employment, been exposed to valuable and sensitive Company reports, files,
memoranda, records, software, and other property; and

 

WHEREAS, the Company recognizes that the solicitation
of its employees and customers, and the use or disclosure of the policies,
procedures, information, documents, and property of the Company would be
damaging to the Company’s interests; and

 

WHEREAS, the Company has determined that it is in the
best interests of the Company to protect its interests through the use of
Employment and Non-Compete Agreements; and

 

WHEREAS, the Company has determined that it is in the
best interests of the Company and its shareholders for the Company to agree to
provide benefits under the circumstances described below to the Executive and
other executives who agree to such an agreement.

 

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

 

 

Section
1

Definitions

 

“Announcement” shall mean a press release issued by
the Company announcing the signing of an agreement whereby the Company will be
acquired by or merge with any other entity or a tender offer for the shares of
the Company stock will be initiated.

 

“Board” shall mean the Board of Directors of the
Company or the ultimate corporate parent entity which owns the Company if the
Company is not public.

 

“Cause” shall mean a unanimous determination by the
Board that the Executive has been convicted of a felony, has embezzled from, or
committed fraud against, the Company which embezzlement or fraud has a material
adverse financial impact on the Company or gross insubordination which has
continued after written notice of such from the Board which determination is
upheld by a final, non-appealable arbitration award pursuant to Section 6.

 

“Change in Control” shall mean the earlier to occur of
(a) ten (10) days following the closing of a tender offer for the Company’s
stock following the Announcement or (b) the closing of a merger or similar
transaction (“Transaction”) of the Company and any other entity; provided,
however, a Transaction the result of which is the shareholders of the Company’s
voting securities immediately prior to the Transaction own, directly or
indirectly in substantially the same proportion, at least 60% of the voting securities
of the survivor of such Transaction immediately following such Transaction
shall not be a Change in Control.

 

“Change in Control Fee” shall mean $250, 000.

 

“Code” shall mean the Internal Revenue Code of 1986,
as amended.

 

“Company Information” shall mean (i) confidential
information including, without limitation, information received from third
parties under confidential conditions, (ii) information subject to the
Company’s and its affiliates’ attorney-client or work-product privilege; and
(iii) other technical, business, legal or financial information (including,
without limitation, customer lists), the use or disclosure of which might
reasonably be construed to be contrary to the Company’s and its affiliates’
interests.

 

“Date of Termination” shall mean the date on which the
Executive’s employment is terminated.

 

“Employment Period” shall mean the period of time
during the Extension Period the Executive is an employee of the Company.

 

“Extension Period” shall mean the 24 month period
following the Change in Control.

 

“Good Reason” shall mean a (i) reduction in title,
responsibilities, administrative support or support services, (ii) relocation
of Executive’s office, (iii) travel at a level that exceeds the travel
requirements before the Change in Control, (iv) any breach by the Company of
its obligations hereunder, (v) any breach by the purchaser under a merger or
acquisition agreement pursuant to which the Change in Control takes place
relating to employee benefits or directors’

 

2

 

and officers’ insurance or indemnification provisions,
or (vi) any reason whatsoever two months after the Change in Control.

 

“Monthly
Amount” shall be an amount equal to one-twelfth of the sum of (a) the
Executive’s then current annual base salary (excluding any incentive or bonus),
and (b) the amount of any cash bonus awarded to the Executive for the then most
recently concluded fiscal year of the Company.

 

 “Non-Compete
Monthly Amount” shall mean the portion of the Monthly Amount which is paid in
consideration of the Executive’s agreement to the restrictions and other
provisions of Section 7, with the remainder of the Monthly Amount and other
benefits under this Agreement paid after the Employment Period to be treated as
severance.  Executive’s Non-Compete
Monthly Amount shall be calculated by multiplying the Monthly Amount by fifty
percent.

 

“Retirement Plan” shall mean the Company’s qualified
defined benefit retirement plan(s) in which the Executive participates.

 

“SERP” shall mean any and all supplemental retirement
plans in which the Executive participates (including, but not limited to, any
benefit restoration plan(s) maintained by the Company from time to time).

 

Section
2

Term of Agreement

 

This Agreement shall be effective as of the Effective
Date but shall automatically terminate if no Announcement occurs within two (2)
years of the Effective Date or if the Executive’s employment is terminated
prior to an Announcement.  Renewal of
this Agreement for successive two (2) year terms shall require approval of the
Company’s Compensation and Stock Incentive Committee.

 

Section
3

Benefits

 

(a) On the date of a Change in Control, the Company
shall pay to the Executive in cash the Change in Control Fee.

 

(b) During the Extension Period, the Company shall pay
to the Executive the Monthly Amount, payable on the first day of each month,
prorated for partial months.

 

(c) If the Executive’s employment is terminated during
the Extension Period, then,

 

(i)            within
five business days after the Date of Termination, the Company shall pay to the
Executive (or if the Executive dies, to the estate of the Executive) in cash
all accrued but unpaid salary, earned but unpaid bonuses, and accrued but
unused vacation in accordance with Company policies;

 

3

 

(ii)           the
Company shall pay to the Executive (or if the Executive dies, to the estate of
the Executive) the Monthly Amount on the first day of each month during the
remainder of the Extension Period;

 

(iii)          the
Company shall pay to the Executive (or if the Executive dies, to his
beneficiary, if any, under the Retirement Plan) a lump sum amount equal to the
value of the monthly benefit under (x) the Retirement Plan and (y) the SERP,
that the Executive or his beneficiary, if any, under the Retirement Plan would
have received (1) for payments of the Monthly Amount had Executive been an
employee while receiving such payments, and (2) for payment of the Change of
Control Fee had such amount been treated as a normal bonus for pension accrual
purposes (giving credit for all purposes, including, but not limited to,
accrual of benefits, vesting, age and years of service and making the
determination without regard to compensation or benefit limitations prescribed
by federal law or regulation), which payment shall be paid within 10 days of
the Date of Termination and calculated by Buck Consultants (or such other
consultant as may be agreed upon) using the actuarial assumptions under the
Retirement Plan and the discount rate which would be utilized for purposes of
funding a Plan termination;

 

(iv)          on
the Date of Termination the Company shall transfer title and ownership to the
Executive of his laptop computer, if any, without any payment by the Executive
to the Company.

 

(d) During the Extension Period (whether or not during
the Employment Period) the Executive shall be entitled to the following
additional benefits:

 

(i)            The
Executive and, as applicable, the Executive’s covered dependents shall be
entitled to all health, welfare, and fringe benefits provided by the Company to
its key employees generally or to the Executive on an individual or group basis
(including, but not limited to, any life, accident, health, hospitalization or
long-term disability insurance, maintained from time to time by the Company),
whether maintained pursuant to a plan, policy or other arrangement (written or
unwritten), as if the Executive were still employed during such period, at the
same level of benefits and at the same dollar cost to the Executive as is
available generally to comparable employees of the Company (but in no instances
shall such benefits be at a level less than as in effect on the date of the
Change in Control).  If the Company reasonably
determines that the coverage required under this Section would cause a welfare
plan sponsored by the Company to violate any provision of the Code prohibiting
discrimination in favor of highly compensated employees or key employees, or if
any benefits described in this Section cannot be provided (or the Company
determines that it does not wish to provide such benefits) pursuant to the
appropriate plan or program maintained for employees of the Company, the
Company shall provide such benefits outside such plan or program at no
additional cost (on an after tax basis) to the Executive or, if the parties
shall so agree, the Company will pay to the Executive the cash equivalent
thereof.  The health benefits provided
in accordance with this Section shall be secondary to any comparable benefits provided
by another employer if and only if the Executive chooses to be covered by such
other employee plan.

 

(ii)           Executive
shall receive continued payment of professional and organizational dues and
fees as in effect prior the Change in Control.

 

4

 

(e) Executive shall have exclusive use of the office
space identified on the attached Exhibit A for the term set forth thereon,
together with all furniture, fixtures, equipment and systems currently therein
(or comparable equipment and systems, such as phone, voicemail, email, copiers
or computers, if Company wishes to change service providers), all of which
shall be provided and maintained (including utilities and janitorial service)
at no cost to Executive (on an after tax basis) consistent with past practices,
except that for any period of such use which extends past the Employment
Period, Executive shall be responsible to reimburse Company for long distance
phone charges.  Executive shall also be
given title to the law library in such offices (including the unexpired term of
any subscription series) at no cost to Executive (on an after tax basis).

 

(f)            (i)      If
all, or any portion, of the payments and benefits provided under this
Agreement, if any, either alone or together with other payments and benefits
which the Executive receives or is entitled to receive from the Company, would
constitute an excess “parachute payment” within the meaning of Section 280G of
the Code (whether or not under an existing plan, arrangement, or other
agreement) (each such parachute payment, a “Parachute Payment”), and would
result in the imposition on the Executive of an excise tax under Section 4999
of the Code, then, in addition to any other benefits to which the Executive is
entitled under this Agreement or otherwise, the Executive shall be paid an
amount in cash equal to the sum of the excise taxes payable by the Executive by
reason of receiving Parachute Payments plus the amount necessary to place the
Executive in the same after-tax position (taking into account any and all
applicable federal, state and local excise, income or other taxes at the
highest possible applicable rates on such Parachute Payments (including,
without limitation, any payments under this Section) as if no excise taxes had
been imposed with respect to Parachute Payments (the “Parachute
Gross-Up”).  Any Parachute Gross-Up
otherwise required by this Section shall not be made later than the time of the
corresponding payment or benefit hereunder giving rise to the underlying
Section 4999 excise tax, even if the payment of the excise tax is not required
under the Code until a later time.

 

(ii)           Subject
to the provisions of Section 3(d) and except as may otherwise be agreed to by
the Company and the Executive, the amount or amounts (if any) payable under
this Section 3 shall be as conclusively determined by the KPMG LLP, or such
other firm as mutually agreed to by the Company and the Executive (“Independent
Tax Counsel”), whose determination or determinations shall be final and binding
on all parties.  The Executive shall
agree to utilize such determination or determinations, as applicable, in filing
all of the Executive’s tax returns with respect to the excise tax imposed by
Section 4999 of the Code, if any.  If
such Independent Tax Counsel fails or refuses to make the required
determinations for any reason, then such determinations shall be made by a
comparable firm or group of national reputation to which the parties reasonably
mutually agreed.  All fees and expenses
of the Independent Tax Counsel or its replacement shall be paid by the Company.

 

(iii)          As
a result of the uncertainty in the application of Section 4999 of the Code at
the time of the initial determination by the Independent Tax Counsel hereunder,
it is possible that Parachute Gross-Up payments, if any, which will not have
been made by the Company, should have been made, together with any interest,
penalties or taxes of any kind thereon, consistent with the calculations
required to be made hereunder (an “Underpayment”).  The Company shall pay all such Underpayments to or for the
benefit of the Executive.  The

 

5

 

Executive shall
notify the Company in writing of any claim by the Internal Revenue Service
that, if successful, would require the payment by the Company of the Gross-Up
Payment within ten (10) business days after the Executive is informed in
writing of such claim.  The Company
shall notify the Executive within ten (10) business days of receipt of the Executive
notice that the Company (x) will pay the Underpayment and do so on or before
the date due, or (y) that it desires to contest such claim.  The Executive will cooperate with the
Company in any such contest; provided, however, that the Company shall bear and
pay directly all costs and expenses (including additional interest and
penalties) incurred in connection with such contest and shall indemnify and
hold the Executive harmless, on an after-tax basis, for any Excise Tax or
income tax (including interest and penalties with respect thereto) imposed as a
result of such representation and payment of costs and expenses.  Furthermore, the Company’s control of the
contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and the Executive shall be entitled, at Executive’s
expense, to settle or contest, as the case may be, any other issue raised by
the Internal Revenue Service or any other taxing authority.

 

(iv)          References
herein to Code sections shall apply to comparable Code sections in the event of
any amendment to the Code.

 

(v)           The
foregoing provisions of this subsection (f) shall similarly apply to any
benefit provided elsewhere in this Agreement where it is expressly provided
that the benefit is to be provided on an after tax basis.

 

(g) In the event of the Executive’s termination of
employment under this Agreement, the Executive shall be under no obligation to
seek other employment, and there shall be no offset against amounts due the
Executive under this Agreement on account of any remuneration attributable to
any subsequent employment.

 

In the event that Executive’s employment is terminated
by the Company for Cause (and Executive was not capable of voluntarily
terminating for Good Reason at or prior to such time) or if Executive
voluntarily terminates without Good Reason, the Company shall remain obligated
to pay the Non-Compete Monthly Amount but shall not be obligated to pay the
balance of the Monthly Amount.  Executive
is free to terminate his employment for Good Reason.

 

Section
4

Employment

 

Following a Change in Control, the Executive will,
except as provided below, continue as an employee during the Extension
Period.  During the Employment Period:

 

(i)            The
Executive shall perform services consistent with his past practices,

 

(ii)           The
Executive shall not be required to relocate or travel in excess of past
practices,

 

(iii)          The
Executive shall enjoy the same office, administrative support and support
services as he enjoyed prior to the Change in Control.

 

6

 

(iv)          The
Executive shall not be required to devote more time to Company business than he
did prior to the Change in Control and may continue director or officer
positions with other private or public entities that do not violate Section 7.

 

(v)           The
Executive’s expenses shall be reimbursed consistent with past practices, and

 

(vi)          The
Executive shall receive at least the same vacation as he currently enjoys, but
not less than four weeks paid vacation.

 

No breach or alleged breach of this Section 4 shall
constitute grounds for, or otherwise entitle, the Company to offset payments
otherwise owing to the Executive under this Agreement.

 

Section
5

Source
of Payments

 

All payments provided for in this Agreement shall be
paid in cash from the general funds of the Company; provided, however, that
such payments shall be reduced by the amount of any payments made to the
Executive or his dependents, beneficiaries or estate from any trust or special
or separate fund established by the Company to assure such payments.  The Company shall not be required to
establish a special or separate fund or other segregation of assets to assure
such payments.

 

Section
6

Litigation
Expenses and Arbitration

 

In addition to the Company’s other obligations under
this Agreement, the Company shall pay all legal fees and expenses incurred in a
legal proceeding (including arbitration) by the Executive in seeking to obtain
or enforce any right or benefit provided by this Agreement (including, without
limitation, any rights to a tax gross-up). 
Such payments are to be made within five days after the Executive’s
request for payment accompanied with such evidence of fees and expenses
incurred as the Company reasonably may require; provided, however, that if the
Executive institutes a proceeding and the judge or other decision-maker
presiding over the proceeding affirmatively finds that the Executive has failed
to prevail substantially, he shall pay his own costs and expenses (and, if
applicable, return any amounts theretofore paid on his behalf under this
Section 6.

 

All disputes with respect to the subject matter of
this Agreement and the enforcement of rights hereunder shall be submitted to
binding arbitration in accordance with the rules of the American Arbitration
Association (the “AAA”).  Each party
hereto shall designate one arbitrator (who need not be impartial) within
fifteen (15) days after notice of the dispute. The two arbitrators so
designated shall endeavor to designate promptly a third, neutral arbitrator. If
the two arbitrators have not designated the third arbitrator by the fifteenth
(15th) day following the designation of the second arbitrator, or if
a second arbitrator has not been designated by the (15th) day
following the designation of the first, either Party may request the AAA to
designate the remaining arbitrator(s). The third arbitrator shall take an oath
of neutrality. The arbitrators shall not be bound by judicial formalities and
may abstain from following the strict rules of evidence and shall interpret
this Agreement as an honorable engagement and not merely as a legal

 

7

 

obligation. The arbitrators shall have the power to
render equitable relief as may be available in accordance with applicable
law.  Unless otherwise agreed by the
parties, any such arbitration shall take place in such City within the United
States as Executive may designate, and shall be conducted in accordance with
the Rules of the AAA.  The determination
reached in such arbitration shall be final and binding on both parties without
any right of appeal or further dispute. The arbitrators’ award may be confirmed
in, and judgment upon the award entered by, any federal or state court having
jurisdiction over the parties.

 

Section
7

Restrictive Covenants

 

(a) Within a reasonable period of time following his
termination of employment, the Executive shall return to the Company all
Company Information, reports, files, memoranda, records, credit cards, cardkey
passes, door and file keys, computer access codes, and other property which the
Executive has received, prepared, or helped to prepare in connection with his
employment with the Company, except as provided in Section 3.  The Executive acknowledges that in the course
of employment with the Company, he has acquired Company Information and that
such Company Information has been disclosed to him in confidence and for the
Company’s use only.  The Executive
agrees that, during the Extension Period, he (i) will keep such Company
Information confidential at all times, (ii) will not disclose or communicate
Company Information to any third party, and (iii) will not make use of Company
Information on his own behalf or on behalf of any third party.  The Executive further acknowledges and
agrees that the Company’s remedy in the form of monetary damages for any breach
by him of any of the provisions of this Section may be inadequate and that, in
addition to any monetary damages for such breach, the Company shall be entitled
to institute and maintain any appropriate proceeding or proceedings, including
an action for specific performance and/or injunction.

 

(b) Executive agrees not to, during the Extension
Period, within the Territory, directly or indirectly, individually or on behalf
of persons not now parties to this Agreement, or as a director, officer,
principal, agent, executive, or in any other capacity or relationship, engage
in the casino business (except as a passive investor holding not more than 3%
of the equity of such business), or aid or endeavor to assist any business or
legal entity, that is in the casino business and that competes with the Company
anywhere in the Territory.  The
Territory shall consist of both the entire State of Delaware and a 50-mile
radius around the Company’s facility in Dover, Delaware.  The Company and Executive acknowledge the
reasonableness of this covenant not to compete and the reasonableness of the
geographic area and duration of time which are a part of said covenant.

 

(c) Unless waived in writing by the Company, Executive
further agrees that he will not, directly or indirectly, during the Extension
Period, solicit the trade or patronage of any of the customers of the Company,
regardless of the location of such customers of the Company with respect to any
services, products, or other matters in which the Company is active.

 

(d) Unless waived in writing by the Company, Executive
further agrees that he will not, directly or indirectly, during the Extension
Period, solicit or attempt to entice away from the Company any director, agent
or employee of the Company.

 

8

 

(e) Executive acknowledges that the Company has no
adequate remedy at law and would be irreparably harmed if Executive breaches or
threatens to breach any of the provisions of this Section and, therefore,
agrees that the Company shall be entitled to injunctive relief to prevent any
such breach or threatened breach thereof and to specific performance of the
terms of this Section (in addition to any other legal or equitable remedy the
Company may have, including if so determined by arbitration, that the Company
is not obligated to pay to the Executive (or the Executive is required to repay
to the Company) a portion or all of the Non-Compete Monthly Amount; provided,
however, in all instances the Company shall continue to pay to Executive the
Non-Compete Monthly Amount unless and until all appeals have been exhausted or
the time for such has expired).  Executive
further agrees that Executive shall not, in any equity proceeding relating to
the enforcement of this Section, raise the defense that the Company has an
adequate remedy at law.  Nothing in this
Agreement shall be construed as prohibiting the Company from pursuing any other
remedies at law or in equity that it may have under and in respect of this
Agreement or any other agreement.

 

(f) The Executive agrees to pay to the Company any
outstanding amounts owed to the Company; provided, however, that no breach or
alleged breach of this subsection (f) or any other provision of this Section
shall constitute grounds for, or otherwise entitle, the Company to offset
payments otherwise owed to the Executive under this Agreement.

 

Section
8

Severability

 

If, for any reason, any one or more of the provisions
or part of a provision contained in this Agreement shall be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision or part of a provision of
this Agreement not held so invalid, illegal or unenforceable, and each other
provision or part of a provision shall to the fullest extent consistent with
law continue in full force and effect.

 

Section
9

Amendment, Termination, or Modification

 

Except as provided below, this Agreement may not be
terminated, modified or amended other than by an instrument in writing signed
by the parties hereto.  No term or
condition of this Agreement shall be deemed to have been waived, nor shall there
be any estoppel against the enforcement of any provision of this Agreement,
except by written instrument signed by the party charged with such waiver or
estoppel.  No such written waiver shall
be deemed a continuing waiver unless specifically stated therein, and each such
waiver shall operate only as to the specific term or condition waived and shall
not constitute a waiver of such term or condition for the future or as to any
act other than that specifically waived.

 

Section
10

Consolidation, Merger, or Sale of Assets; Assignability

 

The Company shall require (a) any successor (whether
direct or indirect, by purchase, merger, consolidation, or otherwise) to all or
substantially all of the business or assets of the Company and (b) the parent
entity owning or controlling such successor expressly to assume and

 

9

 

agree to perform under the terms of this Agreement in
the same manner and to the same extent that the Company and its affiliates
would be required to perform it if no such succession had taken place (provided
that such a requirement to perform which arises by operation of law shall be
deemed to satisfy the requirements for such an express assumption and
agreement).  Except as provided herein,
the Executive’s rights hereunder shall not be assignable.

 

Section
11

Tax
Withholding

 

The Company may withhold from any payments made under
this Agreement all federal, state or other taxes as shall be required pursuant
to any law or governmental regulation or ruling.

 

Section
12

Entire Understanding

 

This Agreement contains the entire understanding
between the Company and the Executive with respect to the subject matter hereof
and supersedes any prior agreement between the Company and the Executive
regarding non-compete provisions, except that this Agreement shall not affect
or operate to reduce any benefit or compensation inuring to the Executive of
any kind elsewhere provided and not expressly dealt with in this Agreement.

 

Section
13

Binding Agreement

 

This Agreement shall be binding upon, and shall inure
to the benefit of, the Executive and the Company and their respective permitted
successors and assigns.

 

Section
14

Employment
Status

 

Nothing herein contained shall
be deemed to create an employment agreement between the Company and the
Executive providing for the employment of the Executive by the Company for any
fixed period of time prior to a Change in Control.  The Executive’s employment with the Company is terminable at will
by the Company or Executive and each shall have the right to terminate Executive’s
employment with the Company at any time, with or without Cause, subject to the
Company’s obligation to provide any benefits required hereunder.   There are no other agreements or
understandings between the Company and the Executive which guarantee continued
employment to the Executive or guarantee any level of compensation, including
incentive or bonus payments, to the Executive.

 

Section
15

No
Attachment

 

Except as required by law, no right to receive
payments under this Agreement shall be subject to anticipation, commutation,
alienation, sale, assignment, encumbrance, charge, pledge or hypothecation or
to execution, attachment, levy or similar process or assignment by operation of
law, and any attempt, voluntary or involuntary, to effect any such action shall
be null, void and of no effect.

 

10

 

Section
16

Notices

 

All notices, requests, demands and other
communications required or permitted hereunder shall be given in writing and
shall be deemed to have been duly given if delivered or mailed, postage
prepaid, first class as follows:

 

(a) to the Company, at its Dover, Delaware address

 

(b) to the Executive, at the address maintained by the
Company for the Executive for payroll purposes;

 

or to such address as either party shall have
previously specified in writing to the other.

 

Section
17

Revocation and Executive Acknowledgments

 

The Executive acknowledges that he has read and
understands the provisions of this Agreement. 
The Executive further acknowledges that he has been given an opportunity
for his legal counsel to review this Agreement and that the provisions of this
Agreement are reasonable and that he has received a copy of this Agreement.

 

Section
18

Headings of No Effect

 

The section headings contained in this Agreement are
included solely for convenience of reference and shall not in any way affect
the meaning or interpretation of any of the provisions of this Agreement.

 

Section
19

Applicable Law

 

This Agreement and its validity, interpretation,
performance, and enforcement shall be governed by the laws of the State of
Delaware.

 

Section
20

Counterparts

 

This Agreement may be executed in two or more
counterparts, each of which shall be an original and all of which shall be
deemed to constitute one and the same instrument.

 

IN WITNESS WHEREOF, the Company through its officer
duly authorized, and the

 

11

 

Executive both intending to be legally bound have duly
executed and delivered this Agreement, to be effective as of the Effective
Date.

 

	
   

  	
  Dover Downs Gaming
  & Entertainment,

  Inc.

  
	
   

  	
   

  
	
   

  	
    /S/  Denis
  McGlynn

  
	
   

  	
  Its

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
    /S/  Klaus
  M. Belohoubke

  

 

12

 

Exhibit A – Office Space

 

Office Space shall be Suite 203

 

Concord Plaza

3505 Silverside Road

Plaza Centre Bldg.,

Wilmington, DE 19810

 

 

Term shall be through
initial lease term with Concord Properties expiring January 31, 2008

 

13Exhibit 10.3

 

EMPLOYMENT
AND NON-COMPETE AGREEMENT

 

DOVER
DOWNS GAMING & ENTERTAINMENT, INC.

 

AND

 

TIMOTHY R. HORNE

 

 

THIS AGREEMENT, is by and between Dover Downs Gaming
& Entertainment, Inc. (the “Company”) and Timothy R. Horne (the
“Executive”) and is effective as of this 16th day of June, 2004 (the “Effective
Date”).

 

W I
T N E S S E T H:

 

WHEREAS, the Executive is currently employed by the
Company or an affiliate thereof in an executive position; and

 

WHEREAS, the Executive has, in the course of his employment,
developed relationships with employees and customers of the Company, and
learned valuable and sensitive information concerning the Company’s operations,
policies and procedures; and

 

WHEREAS, the Executive has, in the course of his
employment, been exposed to valuable and sensitive Company reports, files,
memoranda, records, software, and other property; and

 

WHEREAS, the Company recognizes that the solicitation
of its employees and customers, and the use or disclosure of the policies,
procedures, information, documents, and property of the Company would be
damaging to the Company’s interests; and

 

WHEREAS, the Company has determined that it is in the
best interests of the Company to protect its interests through the use of
Employment and Non-Compete Agreements; and

 

WHEREAS, the Company has determined that it is in the
best interests of the Company and its shareholders for the Company to agree to
provide benefits under the circumstances described below to the Executive and
other executives who agree to such an agreement.

 

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

 

 

Section
1

Definitions

 

“Announcement” shall mean a press release issued by
the Company announcing the signing of an agreement whereby the Company will be
acquired by or merge with any other entity or a tender offer for the shares of
the Company stock will be initiated.

 

“Board” shall mean the Board of Directors of the
Company or the ultimate corporate parent entity which owns the Company if the
Company is not public.

 

“Cause” shall mean a unanimous determination by the
Board that the Executive has been convicted of a felony, has embezzled from, or
committed fraud against, the Company which embezzlement or fraud has a material
adverse financial impact on the Company or gross insubordination which has
continued after written notice of such from the Board which determination is
upheld by a final, non-appealable arbitration award pursuant to Section 6.

 

“Change in Control” shall mean the earlier to occur of
(a) ten (10) days following the closing of a tender offer for the Company’s
stock following the Announcement or (b) the closing of a merger or similar
transaction (“Transaction”) of the Company and any other entity; provided,
however, a Transaction the result of which is the shareholders of the Company’s
voting securities immediately prior to the Transaction own, directly or
indirectly in substantially the same proportion, at least 60% of the voting
securities of the survivor of such Transaction immediately following such
Transaction shall not be a Change in Control.

 

“Change in Control Fee” shall mean $250, 000.

 

“Code” shall mean the Internal Revenue Code of 1986,
as amended.

 

“Company Information” shall mean (i) confidential
information including, without limitation, information received from third
parties under confidential conditions, (ii) information subject to the
Company’s and its affiliates’ attorney-client or work-product privilege; and
(iii) other technical, business, legal or financial information (including,
without limitation, customer lists), the use or disclosure of which might
reasonably be construed to be contrary to the Company’s and its affiliates’
interests.

 

“Date of Termination” shall mean the date on which the
Executive’s employment is terminated.

 

“Employment Period” shall mean the period of time
during the Extension Period the Executive is an employee of the Company.

 

“Extension Period” shall mean the 24 month period
following the Change in Control.

 

“Good Reason” shall mean a (i) reduction in title,
responsibilities, administrative support or support services, (ii) relocation
of Executive’s office, (iii) travel at a level that exceeds the travel
requirements before the Change in Control, (iv) any breach by the Company of
its obligations hereunder, (v) any breach by the purchaser under a merger or
acquisition agreement pursuant to which the Change in Control takes place
relating to employee benefits or directors’

 

2

 

and officers’ insurance or indemnification provisions,
or (vi) any reason whatsoever two months after the Change in Control.

 

“Monthly
Amount” shall be an amount equal to one-twelfth of the sum of (a) the
Executive’s then current annual base salary (excluding any incentive or bonus),
and (b) the amount of any cash bonus awarded to the Executive for the then most
recently concluded fiscal year of the Company.

 

“Non-Compete Monthly Amount” shall mean the portion of
the Monthly Amount which is paid in consideration of the Executive’s agreement
to the restrictions and other provisions of Section 7, with the remainder of
the Monthly Amount and other benefits under this Agreement paid after the
Employment Period to be treated as severance. 
Executive’s Non-Compete Monthly Amount shall be calculated by
multiplying the Monthly Amount by fifty percent.

 

“Retirement Plan” shall mean the Company’s qualified
defined benefit retirement plan(s) in which the Executive participates.

 

“SERP” shall mean any and all supplemental retirement
plans in which the Executive participates (including, but not limited to, any
benefit restoration plan(s) maintained by the Company from time to time).

 

Section
2

Term of Agreement

 

This Agreement shall be effective as of the Effective
Date but shall automatically terminate if no Announcement occurs within two (2)
years of the Effective Date or if the Executive’s employment is terminated
prior to an Announcement.  Renewal of
this Agreement for successive two (2) year terms shall require approval of the
Company’s Compensation and Stock Incentive Committee.

 

Section
3

Benefits

 

(a) On the date of a Change in Control, the Company
shall pay to the Executive in cash the Change in Control Fee.

 

(b) During the Extension Period, the Company shall pay
to the Executive the Monthly Amount, payable on the first day of each month,
prorated for partial months.

 

(c) If the Executive’s employment is terminated during
the Extension Period, then,

 

(i)            within
five business days after the Date of Termination, the Company shall pay to the
Executive (or if the Executive dies, to the estate of the Executive) in cash
all accrued but unpaid salary, earned but unpaid bonuses, and accrued but
unused vacation in accordance with Company policies;

 

3

 

(ii)           the
Company shall pay to the Executive (or if the Executive dies, to the estate of
the Executive) the Monthly Amount on the first day of each month during the
remainder of the Extension Period;

 

(iii)          the
Company shall pay to the Executive (or if the Executive dies, to his
beneficiary, if any, under the Retirement Plan) a lump sum amount equal to the
value of the monthly benefit under (x) the Retirement Plan and (y) the SERP,
that the Executive or his beneficiary, if any, under the Retirement Plan would
have received (1) for payments of the Monthly Amount had Executive been an
employee while receiving such payments, and (2) for payment of the Change of
Control Fee had such amount been treated as a normal bonus for pension accrual
purposes (giving credit for all purposes, including, but not limited to,
accrual of benefits, vesting, age and years of service and making the
determination without regard to compensation or benefit limitations prescribed by
federal law or regulation), which payment shall be paid within 10 days of the
Date of Termination and calculated by Buck Consultants (or such other
consultant as may be agreed upon) using the actuarial assumptions under the
Retirement Plan and the discount rate which would be utilized for purposes of
funding a Plan termination;

 

(iv)          on
the Date of Termination the Company shall transfer title and ownership to the
Executive of his laptop computer, if any, without any payment by the Executive
to the Company.

 

(d) During the Extension Period (whether or not during
the Employment Period) the Executive shall be entitled to the following
additional benefits:

 

(i)            The
Executive and, as applicable, the Executive’s covered dependents shall be
entitled to all health, welfare, and fringe benefits provided by the Company to
its key employees generally or to the Executive on an individual or group basis
(including, but not limited to, any life, accident, health, hospitalization or
long-term disability insurance, maintained from time to time by the Company),
whether maintained pursuant to a plan, policy or other arrangement (written or
unwritten), as if the Executive were still employed during such period, at the
same level of benefits and at the same dollar cost to the Executive as is
available generally to comparable employees of the Company (but in no instances
shall such benefits be at a level less than as in effect on the date of the
Change in Control).  If the Company
reasonably determines that the coverage required under this Section would cause
a welfare plan sponsored by the Company to violate any provision of the Code
prohibiting discrimination in favor of highly compensated employees or key
employees, or if any benefits described in this Section cannot be provided (or
the Company determines that it does not wish to provide such benefits) pursuant
to the appropriate plan or program maintained for employees of the Company, the
Company shall provide such benefits outside such plan or program at no
additional cost (on an after tax basis) to the Executive or, if the parties
shall so agree, the Company will pay to the Executive the cash equivalent
thereof.  The health benefits provided
in accordance with this Section shall be secondary to any comparable benefits
provided by another employer if and only if the Executive chooses to be covered
by such other employee plan.

 

(ii)           Executive
shall receive continued payment of professional and organizational dues and
fees as in effect prior the Change in Control.

 

4

 

(e)   (i)    If
all, or any portion, of the payments and benefits provided under this
Agreement, if any, either alone or together with other payments and benefits
which the Executive receives or is entitled to receive from the Company, would
constitute an excess “parachute payment” within the meaning of Section 280G of
the Code (whether or not under an existing plan, arrangement, or other
agreement) (each such parachute payment, a “Parachute Payment”), and would
result in the imposition on the Executive of an excise tax under Section 4999
of the Code, then, in addition to any other benefits to which the Executive is
entitled under this Agreement or otherwise, the Executive shall be paid an
amount in cash equal to the sum of the excise taxes payable by the Executive by
reason of receiving Parachute Payments plus the amount necessary to place the
Executive in the same after-tax position (taking into account any and all
applicable federal, state and local excise, income or other taxes at the
highest possible applicable rates on such Parachute Payments (including,
without limitation, any payments under this Section) as if no excise taxes had
been imposed with respect to Parachute Payments (the “Parachute Gross-Up”).  Any Parachute Gross-Up otherwise required by
this Section shall not be made later than the time of the corresponding payment
or benefit hereunder giving rise to the underlying Section 4999 excise tax,
even if the payment of the excise tax is not required under the Code until a
later time.

 

(ii)           Subject
to the provisions of Section 3(d) and except as may otherwise be agreed to by
the Company and the Executive, the amount or amounts (if any) payable under
this Section 3 shall be as conclusively determined by the KPMG LLP, or such
other firm as mutually agreed to by the Company and the Executive (“Independent
Tax Counsel”), whose determination or determinations shall be final and binding
on all parties.  The Executive shall
agree to utilize such determination or determinations, as applicable, in filing
all of the Executive’s tax returns with respect to the excise tax imposed by
Section 4999 of the Code, if any.  If
such Independent Tax Counsel fails or refuses to make the required determinations
for any reason, then such determinations shall be made by a comparable firm or
group of national reputation to which the parties reasonably mutually
agreed.  All fees and expenses of the
Independent Tax Counsel or its replacement shall be paid by the Company.

 

(iii)          As
a result of the uncertainty in the application of Section 4999 of the Code at
the time of the initial determination by the Independent Tax Counsel hereunder,
it is possible that Parachute Gross-Up payments, if any, which will not have
been made by the Company, should have been made, together with any interest,
penalties or taxes of any kind thereon, consistent with the calculations
required to be made hereunder (an “Underpayment”).  The Company shall pay all such Underpayments to or for the
benefit of the Executive.  The Executive
shall notify the Company in writing of any claim by the Internal Revenue
Service that, if successful, would require the payment by the Company of the
Gross-Up Payment within ten (10) business days after the Executive is informed
in writing of such claim.  The Company
shall notify the Executive within ten (10) business days of receipt of the
Executive notice that the Company (x) will pay the Underpayment and do so on or
before the date due, or (y) that it desires to contest such claim.  The Executive will cooperate with the
Company in any such contest; provided, however, that the Company shall bear and
pay directly all costs and expenses (including additional interest and
penalties) incurred in connection with such contest and shall indemnify and hold
the Executive harmless, on an after-tax basis, for any Excise Tax or income tax
(including interest and penalties with respect thereto) imposed as a result of
such representation and payment of costs and expenses.  Furthermore, the Company’s control of the

 

5

 

contest shall be
limited to issues with respect to which a Gross-Up Payment would be payable
hereunder and the Executive shall be entitled, at Executive’s expense, to
settle or contest, as the case may be, any other issue raised by the Internal
Revenue Service or any other taxing authority.

 

(iv)          References
herein to Code sections shall apply to comparable Code sections in the event of
any amendment to the Code.

 

(v)           The
foregoing provisions of this subsection (f) shall similarly apply to any
benefit provided elsewhere in this Agreement where it is expressly provided
that the benefit is to be provided on an after tax basis.

 

(f) In the event of the Executive’s termination of
employment under this Agreement, the Executive shall be under no obligation to
seek other employment, and there shall be no offset against amounts due the
Executive under this Agreement on account of any remuneration attributable to
any subsequent employment.

 

In the event that Executive’s
employment is terminated by the Company for Cause (and Executive was not
capable of voluntarily terminating for Good Reason at or prior to such time) or
if Executive voluntarily terminates without Good Reason, the Company shall
remain obligated to pay the Non-Compete Monthly Amount but shall not be
obligated to pay the balance of the Monthly Amount.  Executive is free to terminate his employment for Good Reason.

 

Section
4

Employment

 

Following a Change in Control, the Executive will,
except as provided below, continue as an employee during the Extension
Period.  During the Employment Period:

 

(i)            The
Executive shall perform services consistent with his past practices,

 

(ii)           The
Executive shall not be required to relocate or travel in excess of past practices,

 

(iii)          The
Executive shall enjoy the same office, administrative support and support
services as he enjoyed prior to the Change in Control.

 

(iv)          The
Executive shall not be required to devote more time to Company business than he
did prior to the Change in Control and may continue director or officer
positions with other private or public entities that do not violate Section 7.

 

(v)           The
Executive’s expenses shall be reimbursed consistent with past practices, and

 

(vi)          The
Executive shall receive at least the same vacation as he currently enjoys, but
not less than four weeks paid vacation.

 

6

 

No breach or alleged breach of this Section 4 shall
constitute grounds for, or otherwise entitle, the Company to offset payments
otherwise owing to the Executive under this Agreement.

 

Section
5

Source
of Payments

 

All payments provided for in this Agreement shall be
paid in cash from the general funds of the Company; provided, however, that
such payments shall be reduced by the amount of any payments made to the
Executive or his dependents, beneficiaries or estate from any trust or special
or separate fund established by the Company to assure such payments.  The Company shall not be required to
establish a special or separate fund or other segregation of assets to assure
such payments.

 

Section
6

Litigation
Expenses and Arbitration

 

In addition to the Company’s other obligations under
this Agreement, the Company shall pay all legal fees and expenses incurred in a
legal proceeding (including arbitration) by the Executive in seeking to obtain
or enforce any right or benefit provided by this Agreement (including, without
limitation, any rights to a tax gross-up). 
Such payments are to be made within five days after the Executive’s
request for payment accompanied with such evidence of fees and expenses
incurred as the Company reasonably may require; provided, however, that if the
Executive institutes a proceeding and the judge or other decision-maker
presiding over the proceeding affirmatively finds that the Executive has failed
to prevail substantially, he shall pay his own costs and expenses (and, if
applicable, return any amounts theretofore paid on his behalf under this
Section 6.

 

All disputes with respect to the subject matter of
this Agreement and the enforcement of rights hereunder shall be submitted to
binding arbitration in accordance with the rules of the American Arbitration
Association (the “AAA”).  Each party
hereto shall designate one arbitrator (who need not be impartial) within
fifteen (15) days after notice of the dispute. The two arbitrators so
designated shall endeavor to designate promptly a third, neutral arbitrator. If
the two arbitrators have not designated the third arbitrator by the fifteenth
(15th) day following the designation of the second arbitrator, or if
a second arbitrator has not been designated by the (15th) day
following the designation of the first, either Party may request the AAA to
designate the remaining arbitrator(s). The third arbitrator shall take an oath
of neutrality. The arbitrators shall not be bound by judicial formalities and
may abstain from following the strict rules of evidence and shall interpret
this Agreement as an honorable engagement and not merely as a legal obligation.
The arbitrators shall have the power to render equitable relief as may be
available in accordance with applicable law. 
Unless otherwise agreed by the parties, any such arbitration shall take
place in such City within the United States as Executive may designate, and
shall be conducted in accordance with the Rules of the AAA.  The determination reached in such
arbitration shall be final and binding on both parties without any right of
appeal or further dispute. The arbitrators’ award may be confirmed in, and
judgment upon the award entered by, any federal or state court having
jurisdiction over the parties.

 

7

 

Section
7

Restrictive Covenants

 

(a) Within a reasonable period of time following his
termination of employment, the Executive shall return to the Company all
Company Information, reports, files, memoranda, records, credit cards, cardkey
passes, door and file keys, computer access codes, and other property which the
Executive has received, prepared, or helped to prepare in connection with his
employment with the Company, except as provided in Section 3.  The Executive acknowledges that in the
course of employment with the Company, he has acquired Company Information and
that such Company Information has been disclosed to him in confidence and for
the Company’s use only.  The Executive
agrees that, during the Extension Period, he (i) will keep such Company
Information confidential at all times, (ii) will not disclose or communicate
Company Information to any third party, and (iii) will not make use of Company
Information on his own behalf or on behalf of any third party.  The Executive further acknowledges and
agrees that the Company’s remedy in the form of monetary damages for any breach
by him of any of the provisions of this Section may be inadequate and that, in
addition to any monetary damages for such breach, the Company shall be entitled
to institute and maintain any appropriate proceeding or proceedings, including
an action for specific performance and/or injunction.

 

(b) Executive agrees not to, during the Extension
Period, within the Territory, directly or indirectly, individually or on behalf
of persons not now parties to this Agreement, or as a director, officer,
principal, agent, executive, or in any other capacity or relationship, engage
in the casino business (except as a passive investor holding not more than 3%
of the equity of such business), or aid or endeavor to assist any business or
legal entity, that is in the casino business and that competes with the Company
anywhere in the Territory.  The
Territory shall consist of both the entire State of Delaware and a 50-mile
radius around the Company’s facility in Dover, Delaware.  The Company and Executive acknowledge the
reasonableness of this covenant not to compete and the reasonableness of the
geographic area and duration of time which are a part of said covenant.

 

(c) Unless waived in writing by the Company, Executive
further agrees that he will not, directly or indirectly, during the Extension
Period, solicit the trade or patronage of any of the customers of the Company,
regardless of the location of such customers of the Company with respect to any
services, products, or other matters in which the Company is active.

 

(d) Unless waived in writing by the Company, Executive
further agrees that he will not, directly or indirectly, during the Extension
Period, solicit or attempt to entice away from the Company any director, agent
or employee of the Company.

 

(e) Executive acknowledges that the Company has no
adequate remedy at law and would be irreparably harmed if Executive breaches or
threatens to breach any of the provisions of this Section and, therefore,
agrees that the Company shall be entitled to injunctive relief to prevent any
such breach or threatened breach thereof and to specific performance of the
terms of this Section (in addition to any other legal or equitable remedy the
Company may have, including if so determined by arbitration, that the Company
is not obligated to pay to the Executive (or the Executive is required to repay
to the Company) a portion or all of the Non-Compete Monthly Amount; provided,
however, in all instances the Company shall continue to pay to Executive the

 

8

 

Non-Compete
Monthly Amount unless and until all appeals have been exhausted or the time for
such has expired).  Executive further
agrees that Executive shall not, in any equity proceeding relating to the
enforcement of this Section, raise the defense that the Company has an adequate
remedy at law.  Nothing in this
Agreement shall be construed as prohibiting the Company from pursuing any other
remedies at law or in equity that it may have under and in respect of this Agreement
or any other agreement.

 

(f) The Executive agrees to pay to the Company any
outstanding amounts owed to the Company; provided, however, that no breach or
alleged breach of this subsection (f) or any other provision of this Section
shall constitute grounds for, or otherwise entitle, the Company to offset
payments otherwise owed to the Executive under this Agreement.

 

Section
8

Severability

 

If, for any reason, any one or more of the provisions
or part of a provision contained in this Agreement shall be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision or part of a provision of
this Agreement not held so invalid, illegal or unenforceable, and each other
provision or part of a provision shall to the fullest extent consistent with
law continue in full force and effect.

 

Section
9

Amendment, Termination, or Modification

 

Except as provided below, this Agreement may not be
terminated, modified or amended other than by an instrument in writing signed
by the parties hereto.  No term or
condition of this Agreement shall be deemed to have been waived, nor shall
there be any estoppel against the enforcement of any provision of this
Agreement, except by written instrument signed by the party charged with such waiver
or estoppel.  No such written waiver
shall be deemed a continuing waiver unless specifically stated therein, and
each such waiver shall operate only as to the specific term or condition waived
and shall not constitute a waiver of such term or condition for the future or
as to any act other than that specifically waived.

 

Section
10

Consolidation, Merger, or Sale of Assets; Assignability

 

The Company shall require (a) any successor (whether
direct or indirect, by purchase, merger, consolidation, or otherwise) to all or
substantially all of the business or assets of the Company and (b) the parent
entity owning or controlling such successor expressly to assume and agree to
perform under the terms of this Agreement in the same manner and to the same
extent that the Company and its affiliates would be required to perform it if
no such succession had taken place (provided that such a requirement to perform
which arises by operation of law shall be deemed to satisfy the requirements
for such an express assumption and agreement). 
Except as provided herein, the Executive’s rights hereunder shall not be
assignable.

 

9

 

Section
11

Tax
Withholding

 

The Company may withhold from any payments made under
this Agreement all federal, state or other taxes as shall be required pursuant
to any law or governmental regulation or ruling.

 

Section
12

Entire Understanding

 

This Agreement contains the entire understanding
between the Company and the Executive with respect to the subject matter hereof
and supersedes any prior agreement between the Company and the Executive
regarding non-compete provisions, except that this Agreement shall not affect
or operate to reduce any benefit or compensation inuring to the Executive of
any kind elsewhere provided and not expressly dealt with in this Agreement.

 

Section
13

Binding Agreement

 

This Agreement shall be binding upon, and shall inure
to the benefit of, the Executive and the Company and their respective permitted
successors and assigns.

 

Section
14

Employment
Status

 

Nothing herein contained shall
be deemed to create an employment agreement between the Company and the
Executive providing for the employment of the Executive by the Company for any
fixed period of time prior to a Change in Control.  The Executive’s employment with the Company is terminable at will
by the Company or Executive and each shall have the right to terminate
Executive’s employment with the Company at any time, with or without Cause,
subject to the Company’s obligation to provide any benefits required
hereunder.   There are no other
agreements or understandings between the Company and the Executive which
guarantee continued employment to the Executive or guarantee any level of
compensation, including incentive or bonus payments, to the Executive.

 

Section
15

No
Attachment

 

Except as required by law, no right to receive
payments under this Agreement shall be subject to anticipation, commutation,
alienation, sale, assignment, encumbrance, charge, pledge or hypothecation or
to execution, attachment, levy or similar process or assignment by operation of
law, and any attempt, voluntary or involuntary, to effect any such action shall
be null, void and of no effect.

 

10

 

Section
16

Notices

 

All notices, requests, demands and other
communications required or permitted hereunder shall be given in writing and
shall be deemed to have been duly given if delivered or mailed, postage
prepaid, first class as follows:

 

(a) to the Company, at its Dover, Delaware address

 

(b) to the Executive, at the address maintained by the
Company for the Executive for payroll purposes;

 

or to such address as either party shall have
previously specified in writing to the other.

 

Section
17

Revocation and Executive Acknowledgments

 

The Executive acknowledges that he has read and
understands the provisions of this Agreement. 
The Executive further acknowledges that he has been given an opportunity
for his legal counsel to review this Agreement and that the provisions of this
Agreement are reasonable and that he has received a copy of this Agreement.

 

 

Section
18

Headings of No Effect

 

The section headings contained in this Agreement are
included solely for convenience of reference and shall not in any way affect
the meaning or interpretation of any of the provisions of this Agreement.

 

Section
19

Applicable Law

 

This Agreement and its validity, interpretation,
performance, and enforcement shall be governed by the laws of the State of
Delaware.

 

Section
20

Counterparts

 

This Agreement may be executed in two or more
counterparts, each of which shall be an original and all of which shall be
deemed to constitute one and the same instrument.

 

IN WITNESS WHEREOF, the Company through its officer
duly authorized, and the

 

11

 

Executive both intending to be legally bound have duly
executed and delivered this Agreement, to be effective as of the Effective
Date.

 

	
   

  	
  Dover Downs Gaming
  & Entertainment,

  Inc.

  
	
   

  	
   

  
	
   

  	
    /S/  Denis
  McGlynn

  
	
   

  	
  Its

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
    /S/  Timothy
  R. Horne

  

 

12

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