Document:

Exhibit
10.27

 

EMPLOYMENT AGREEMENT

 

	
  1.

  	
   

  	
  EMPLOYER:

  	
   

  	
  MTR
  Gaming Group, Inc. (“MTR” or the “Company”)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  EMPLOYEE:

  	
   

  	
  Narciso
  (“Nick”) A. Rodriguez-Cayro (“Executive”)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  TERM:

  	
   

  	
  Two
  2 years, commencing on February 1, 2010 (the “Employment Date”),
  and ending on February 1, 2012 (such period, subject to earlier
  termination as provided herein, being referred to as the “Period of
  Employment”).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  DUTIES:

  	
   

  	
  Executive
  agrees to serve the Company as its General Counsel and in such other positions,
  consistent with Executive’s role as General Counsel, which the board of
  directors of the Company or its affiliates may appoint him. Executive shall
  devote all of his time, energy and skill during regular business hours to the
  business and affairs of the Company and its affiliates and to the promotion
  of their interests. Executive shall report directly to and shall be subject
  to the direction of the President of MTR.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  COMPENSATION

  	
   

  	
   

  
	
   

  	
   

  	
  &
  BENEFITS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
   

  	
  Salary: $258,000.00
  per year, subject to periodic increase or cash bonus by the Company’s
  Compensation Committee in its sole discretion. The base salary shall be paid
  in accordance with the normal payroll practices of the Company.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
   

  	
  Annual
  Incentive Bonus: Target bonus each year of 25%  of annual
  base salary. Bonus plan to be established by the Board of Directors.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
   

  	
  Restricted
  Stock Units: Restricted Stock Units award of 25,000 shares on
  the Employment Date, pursuant to the terms and conditions established by the
  Board of Directors under the Company’s restricted stock program. Vesting in
  equal 1/3 installments over 3 years from the date of grant based on continued
  employment.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d)

  	
   

  	
  Benefits: Employee
  benefit plans made available by the Company from time to time to its
  executives generally as the Company’s Compensation Committee may periodically
  approve in its discretion.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (e)

  	
   

  	
  Automobile
  Allowance: $600.00 per month toward the lease or purchase,
  insurance and maintenance of an automobile.

  

 

 

	
   

  	
   

  	
  (f)

  	
   

  	
  Vacation: Four
  (4) weeks of paid vacation annually to be taken at a time or times
  mutually satisfactory to Executive and the Company (Executive shall not in
  any event utilize more than six weeks of vacation in any twelve month
  period). Unused vacation will be paid to Executive at the end of the Period
  of Employment as additional compensation, subject to a maximum accrual in
  accordance with Company policy.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (g)

  	
   

  	
  Relocation
  Expenses: Reimbursement of reasonable expenses incident to
  the relocation of Executive, in accordance with the Company’s relocation
  policy.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (h)

  	
   

  	
  Indemnification
  and D&O Insurance: The Company shall indemnify and hold
  harmless Executive from and against any and all losses resulting from or
  arising out of the performance of Executives duties under this Agreement
  during the Period of Employment, in accordance with the Company’s
  indemnification policies for executives generally, as in effect from time to
  time, and provide Executive with coverage, at the Company’s expense, under the
  Company’s directors and officers insurance policy, as in effect from time to
  time for executives of the Company generally.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
   

  	
  Other
  Expenses: Reimbursement of reasonable travel and other
  expenses incident to the rendering of services by Executive. The Company
  shall pay for (A) expenses associated with Executive’s gaming licensure
  in each state in which Executive is directed by the Company or any of its
  affiliates to become licensed, and (B) Executive’s attorney licensure in
  Pennsylvania, New Jersey and any other state which the Company may require
  Executive to obtain such licensure. The Company shall also provide Executive
  a Company cellular telephone, or, at the Company’s election, reimburse
  Executive for the cost of a cellular phone and reasonable monthly service
  charges maintained by Executive, subject to documentation in accordance with
  the Company’s policy, as in effect from time to time.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (j)

  	
   

  	
  Working
  Facilities: The Company shall provide Executive with an
  office, secretarial, administrative and other assistance, and such other
  facilities and services as shall be suitable to his position and appropriate
  for the performance of his duties.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  TERMINATION:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
   

  	
  Termination
  Without Cause: The Company may, by notice to Executive,
  terminate Executive’s employment without Cause at any time, in which event
  Executive shall be entitled to receive in full, upon the effective date of
  the termination payment in an

  

 

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  amount
  equal to the base salary (as set forth in Subsection 5(a)) and incentive
  bonus (at the 25%  target level, as set forth
  in Subsection 5(b)) that would be payable over the longer of (x) the
  remainder of the term of the Agreement and (y) one year following the
  effective date of the termination; (ii) any accrued but unpaid vacation
  pay; and (iii) reimbursement for any expenses; provided, however,
  that Executive shall concurrently with such payments execute a release in
  form and substance acceptable to the Company in its discretion (and any
  revocation periods contained in such release have expired) and Executive
  shall have complied with the Company’s termination procedures. Executive’s
  demotion from General Counsel or the material reduction of Executive’s duties
  as General Counsel, will constitute Termination without Cause.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
   

  	
  Termination
  For Cause: The Company may also terminate Executive’s
  employment without notice (and without payment in lieu of notice) for Cause.
  “Cause” shall mean (i) conviction of a felony, (ii) embezzlement or
  misappropriation of funds or property of the Company or any of its
  affiliates, (iii) Executive’s consistent refusal to substantially
  perform, or willful misconduct in the substantial performance of his duties and
  obligations hereunder; (iv) Executive’s engaging in activity that the
  President determines in his reasonable judgment would result in the
  suspension or revocation of any video lottery, pari-mutuel, or other gaming
  license or permit held by the Company or any of its subsidiaries; or
  (v) a determination by any state gaming regulatory agency that Executive
  is not suitable to hold his position or otherwise to participate in a gaming
  enterprise in the state in question. In the event of termination for Cause,
  neither party shall have any further obligations or duties under this
  Agreement, except as set forth in Subsection 6(d) and Section 7
  hereof and except that the Company shall be obligated to pay any salary and
  vacation pay that are accrued but unpaid through the effective date of
  termination, provided that Executive complies with the Company’s termination
  procedures.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
   

  	
  Death
  or Disability: The Period of Employment shall cease and
  terminate upon the earliest to occur of the following events: (i) the
  death of Executive or (ii) at the election of the CEO (subject to the
  Americans With Disabilities Act), the inability of Executive by reason of
  physical or mental disability to continue the proper performance of his
  duties hereunder for a period of 180 consecutive days. Upon termination of
  the Period of Employment as a result of Executive’s death or disability, in
  consideration for Executive or his heirs and beneficiaries releasing the
  Company from any claims, damages or causes of action by execution of a
  release in form and substance acceptable to the Company in its

  

 

3

 

	
   

  	
   

  	
   

  	
   

  	
  sole
  discretion, the Company shall pay to Executive or his estate, as the case may
  be, a lump sum payment in an amount equal to the base salary (as set forth in
  Subsection 5(a)) that would be payable over the longer of (x) the
  remainder of the term of the Agreement and (y) one year from the date of
  Executive’s death.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d)

  	
   

  	
  Change
  in Control: If during the Period of Employment and at any time
  within six (6) months following a Change in Control, (i) Executive
  is terminated by the Company or any resulting entity without Cause pursuant
  to Subsection 6(a) above, or (H) Executive is not offered the
  position of General Counsel or an equivalent position with the resulting
  entity, and Executive voluntarily terminates his employment with the Company
  or resulting entity within 30 days therefrom (“Constructive Termination”),
  then Executive shall be entitled to the same severance and benefits as set
  forth in Subsection 6(a) above.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  “Change
  in Control” shall mean a change in 50% or more of the ownership or the
  combined voting power of the Company’s outstanding voting securities or a
  sale of substantially all of the assets of the Company.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (e)

  	
   

  	
  Termination
  Procedures: Upon termination of his employment with the
  Company for any reason, Executive agrees to return to the Company all
  tangible manifestations of Confidential Materials (as defined below) and all
  copies thereof, All programs, ideas, strategies approaches, practices or
  inventions created, developed, obtained or conceived of by Executive during
  the term hereof by reason of his engagement by the Company, shall be owned by
  and belong exclusively to the Company, provided that they are related in any
  manner to the Company’s business or that of any of its Affiliates. Executive
  shall (i) promptly disclose all such programs, ideas, strategies,
  approaches, practices, inventions or business opportunities to the Company,
  and (ii) execute and deliver to the Company, without additional
  compensation, such instruments as the Company may require from time to time
  to evidence its ownership of any such items.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  RESTRICTIVE

  	
   

  	
   

  
	
   

  	
   

  	
  COVENANTS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
   

  	
  Confidentiality: The Company
  and Executive acknowledge that as an attorney, Executive has affirmative
  duties under the Pennsylvania Rules of Professional Conduct to
  (a) maintain the confidences of the client communications (see
  Rule 1.6) and (b) representation of organizations (Rule 1.13).
  Executive agrees that during the Period of Employment and at all times
  thereafter,

  

 

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  he
  will not, directly or indirectly, (i) disclose to any other person or
  entity either during or after his employment by the Company or (ii) use,
  except during his employment by the Company in the business and for the
  benefit of the Company or any of its affiliates, any confidential information
  and trade secrets (collectively, “Confidential Material”) relating to the business
  practices of the Company and its affiliates acquired by Executive during his
  employment by the Company.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
   

  	
  Non-Competition: Executive
  agrees that during the Period of Employment and for 1 year following
  expiration or termination of this agreement he will not become a stockholder,
  director, officer, employee or agent of or consultant to any corporation, or
  member of or consultant to any partnership or other entity, or engage in any
  business as a sole proprietor or act as a consultant to any such entity, or
  otherwise engage, directly or indirectly, in any enterprise, in each case
  which competes with any business or activity engaged in, or known by
  Executive to be contemplated to be engaged in, by the Company or any of its
  affiliates within one hundred (100) miles of any location in which the
  Company or any affiliate does business provided, however, that competition
  shall not include the ownership (solely as an investor and without any other
  participation in or contact with the management of the business) of less than
  five percent (5%)  of the outstanding shares of
  stock of any corporation engaged in any such business, which shares are
  regularly traded on a national securities exchange or in an over-the-counter
  market.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
   

  	
  Non-Solicitation: Executive
  agrees that during the Period of Employment and for the two-year period
  following the end of the Period of Employment, Executive shall not, directly
  or indirectly, without the express written consent of the Company, solicit
  any person who is or shall be in the employ or service of the Company to
  leave such employ or service for any other employment opportunity.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d)

  	
   

  	
  Acknowledgement: Executive
  acknowledges and agrees that (A) the agreements and covenants contained
  in this Section 7 are (i) reasonable and valid in geographical and
  temporal scope and in all other respects and (ii) essential to protect
  the value of the business and assets of the Company, and (B) by his
  employment with the Company, Executive has obtained and will obtain knowledge,
  contacts, know-how, training, and experience, and there is a substantial
  probability that such knowledge, contacts, know-how, training, and experience
  could be used to the substantial advantage of a competitor of the Company and
  to the substantial detriment of the Company.

  

 

5

 

	
   

  	
   

  	
  (e)

  	
   

  	
  Injunctive
  Relief: Without limiting the remedies available to
  members of the Company, Executive acknowledges that a breach of any of the
  covenants contained in Section 7 hereof may result in material
  irreparable injury to the Company (or a member thereof) for which there is no
  adequate remedy at law, that it will not be possible to measure damages for
  such injuries precisely and that, in the event of such a breach or threat thereof,
  the Company shall be entitled to obtain a temporary restraining order and/or
  a preliminary or permanent injunction, without the necessity of proving
  irreparable harm or injury as a result of such breach or threatened breach of
  Section 7 hereof, restraining Executive from engaging in activities
  prohibited by Section 7 hereof or such other relief as may be required
  specifically to enforce any of the covenants in Section 7 hereof.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  TAXES:

  	
   

  	
  The
  Company may withhold from any payments made under this agreement all
  applicable taxes, including but not limited to income, employment, and social
  insurance taxes, as shall be required by law. Executive acknowledges and
  represents that the Company has not provided any tax advice to his in
  connection with this agreement and that he has been advised by the Company to
  seek tax advice from his own tax advisors regarding this agreement and
  payments that may be made to him pursuant to this agreement, including
  specifically, the application of the provisions of Section 409A of the
  Internal Revenue Code of 1986, as amended (the “Code”), to such
  payments.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  APPLICATION
  OF

  	
   

  	
   

  
	
   

  	
   

  	
  SECTION 409A
  OF

  	
   

  	
   

  
	
   

  	
   

  	
  THE CODE:

  	
   

  	
  To the extent applicable, it is intended that this agreement comply
  with the provisions of Section 409A of the Code, so as to prevent inclusion
  in gross income of any amounts payable or benefits provided hereunder in a
  taxable year that is prior to the taxable year or years in which such amounts
  or benefits would otherwise actually be distributed, provided or otherwise
  made available to you. This agreement shall be construed, administered, and
  governed in a manner consistent with this intent. In no event shall the
  Company be liable for any additional tax, interest or penalties that may be
  imposed on you under Section 409A of the Code or any damages for failing
  to comply with Section 409A of the Code.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  GENERAL:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
   

  	
  Parties
  In Interest: This Agreement shall be binding upon and inure to
  the benefit of Executive and his heirs and beneficiaries, and it shall be
  binding upon and inure to the benefit of the Company and its successors and
  assigns.

  

 

6

 

	
   

  	
   

  	
  (b)

  	
   

  	
  Arbitration: Any disputes
  arising under the terms of this Agreement shall be settled by binding
  arbitration between the parties in the Weirton/Chester, West Virginia or
  Wexford, Pennsylvania area in a proceeding held under the rules of the
  American Arbitration Association. The arbitrators shall have no authority to
  grant either party any consequential, incidental, punitive or special
  damages.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
   

  	
  Entire
  Agreement: This Agreement supersedes any and all other
  agreements, either oral or in writing, between the parties hereto with
  respect to the employment of Executive by the Company and contains all of the
  covenants and agreements between the parties with respect to such employment
  in any manner whatsoever. Any modification of this Agreement will be
  effective only if it is in writing signed by the parties.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d)

  	
   

  	
  Governing
  Law: West Virginia without giving effect to the choice of law or
  conflicts of law rules and laws of such jurisdiction.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (e)

  	
   

  	
  Severability: In the event
  that any term or condition contained in this Agreement shall for any reason
  be held by a court of competent jurisdiction to be invalid, illegal or
  unenforceable in any respect, such invalidity, illegality or unenforceability
  shall not affect any other term or condition of this Agreement, but this
  Agreement shall be construed as if such invalid or illegal or unenforceable
  term or condition had never been contained herein,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (f)

  	
   

  	
  Counterparts: This
  agreement may be executed in two or more counterparts, each of which shall be
  deemed to be an original but all of which together shall constitute one and
  the same instrument, The execution of this agreement may be by actual or
  facsimile signature.

  

 

7

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of this 29th
day of Dec, 2009.

 

	
   

  	
  MTR Gaming Group, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ROBERT F. GRIFFIN

  
	
   

  	
   

  	
  Robert F. Griffin, President & CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/NARCISO A. RODRIGUEZ-CAYRO

  
	
   

  	
   

  	
  Narciso (“Nick”) A. Rodriguez-Cayro

  

 

8Exhibit 10.30

 

RESTRICTED STOCK UNIT AND CASH AWARD AGREEMENT

 

THIS
RESTRICTED STOCK UNIT AND CASH AWARD AGREEMENT (the “Agreement”), dated as of                
        ,      (the
“Date of Grant”), is made by and between MTR Gaming Group, Inc., a Delaware
corporation (the “Company”), and                                     
(the “Grantee”).

 

WHEREAS,
the Company has adopted the                             
Plan, (the “         Plan”), pursuant
to which the Company may grant Restricted Stock Units and Cash Awards; and

 

WHEREAS,
the Company desires to grant to the Grantee the number of Restricted Stock
Units provided for herein and to pay to the Grantee the additional cash
compensation provided for herein; and

 

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

 

Section 1.    
Grant of Restricted Stock Units; Payment of
Cash Compensation

 

(a) Grant of Restricted Stock Units. The
Company hereby grants to the Grantee an aggregate of                                         
(                )
Restricted Stock Units (the “Award”) on the terms and conditions set forth in
this Agreement and as otherwise provided in the applicable Plan.

 

(b) Agreement to Pay Additional Cash Compensation.
The Company hereby agrees to pay the Grantee the aggregate sum of                                                     
($              )
as additional cash compensation (the “Cash Compensation”), payable pursuant to
and subject to the terms and conditions set forth herein.

 

(c) Incorporation of Plan; Capitalized Terms.
The provisions of the applicable Plan are hereby incorporated herein by
reference with respect to awards under such Plan. Except as otherwise expressly
set forth herein, this Agreement shall be construed in accordance with the
provisions of the applicable Plan and any capitalized terms not otherwise
defined in this Agreement shall have the definitions set forth in such
Plan.  In the event of any conflict or
inconsistency between this Agreement and the applicable Plan, the terms of the
applicable Plan shall govern.

 

Section 2.    
Terms and Conditions of Award and Cash
Compensation

 

The
grant of Restricted Stock Units provided in Section 1(a) shall be
subject to the following terms, conditions and restrictions:

 

(a) Limitations on Rights Associated with the Restricted
Stock Units. The Restricted Stock Units are bookkeeping entries
only. The Grantee shall have no rights as a 

 

 

stockholder
of the Company, no dividend rights and no voting rights with respect to the
Restricted Stock Units.

 

(b) Restrictions. Restricted Stock Units and
any interest therein, may not be sold, assigned, transferred, pledged,
hypothecated or otherwise disposed of, except by will or the laws of descent
and distribution, during the period commencing on the Date of Grant and ending
on the date the Restricted Stock Units vest. 
Any attempt to dispose of any Restricted Stock Units in contravention of
the above restriction shall be null and void and without effect.

 

(c) Lapse of Restrictions. Subject to Sections
2(e) & 2(f) below, one-third (1/3) of the Restricted Stock
Units and one-third (1/3) of the Cash Compensation granted under each of the
Plans shall vest and become non-forfeitable upon each of the first, second, and
third anniversaries of the Date of Grant.

 

(d) Timing and Manner of Payment of Restricted Stock
Units and Cash Compensation. Any Restricted Stock Units and Cash
Compensation that become non-forfeitable shall be paid as soon as practicable
after the Restricted Stock Units subject to the Award and Cash Compensation
become non-forfeitable (such date, the “Payment Date”); provided, however, that
(i) if and to the extent required by Section 409A of the Internal
Revenue Code, payment upon the Grantee’s “separation from service” shall be
deferred until the six month anniversary of such separation of service and (ii) subject
to the foregoing deferral, the Payment Date shall be made no later than March 15th in the year following the calendar year in
which the Restricted Stock Units and Cash Compensation became
non-forfeitable.  Such Restricted Stock
Units shall be paid by the Company delivering to the Grantee a number of Shares
equal to the number of Restricted Stock Units adjusted for any stock splits,
stock dividends, stock rights or extraordinary cash dividends that become
non-forfeitable upon that Payment Date. Subject to Section 2(g), the
Company shall issue the Shares either (i) in certificate form or (ii) in
book entry form, registered in the name of the Grantee. Delivery of any
certificates will be made to the Grantee’s last address reflected on the books
of the Company and its Subsidiaries unless the Company is otherwise instructed
in writing. Neither the Grantee nor any of the Grantee’s successors, heirs,
assigns or personal representatives shall have any further rights or interests
in any Restricted Stock Units that are so paid. Notwithstanding anything herein
to the contrary, the Company shall have no obligation to issue Shares in
payment of the Restricted Stock Units unless such issuance and such payment
shall comply with all relevant provisions of law and the requirements of any
stock exchange provided, however that the Company shall use its best efforts to
comply.

 

(e) Termination of Employment.  Except as otherwise determined by the
Committee and except as otherwise provided herein, unvested Restricted Stock
Units and rights to receive Cash Compensation shall be automatically forfeited
if the Grantee’s employment or service with the Company is terminated for any
reason prior to the lapsing of the restrictions in accordance with Section 2(c) hereof.  Notwithstanding the foregoing, the Grantee’s
unvested Restricted Stock Units and rights to receive Cash Compensation shall
vest in full (and shall not be automatically forfeited) if the Company
terminates the Grantee’s employment or service with the Company and such
termination is not due to Cause (as defined below), the death of the Grantee,
or the Disability of the Grantee.

 

 

Neither
the Grantee nor any of the Grantee’s successors, heirs, assigns or personal
representatives shall have any rights or interests in any Restricted Stock
Units or Cash Compensation that are so forfeited.  For purposes of this Agreement, the term “Cause”
shall mean: (i) conviction of a felony; (ii) embezzlement or
misappropriation of funds or property of the Company or any of its affiliates
(the “Affiliates”); (iii) consistent refusal to substantially perform, or
willful misconduct in the substantial performance of, his duties and obligations
hereunder; (iv) engaging in activity that the Board unanimously determines
in its reasonable judgment would result in the suspension or revocation of any
video lottery, pari-mutuel, or other gaming license or permit held by the
Company or any of its subsidiaries; or (v) a final determination by any
state gaming regulatory agency that Grantee is not suitable to hold his or her
position or otherwise to participate in a gaming enterprise in the state in
question.

 

(f) Change in Control. The following provisions
shall apply in the event of a Change in Control (as such term is defined
below):

 

i)                 Any unvested
Restricted Stock Units and unvested Cash Compensation shall vest on the date of
the Change of the Change of Control.

 

ii)              For purposes of
this Agreement, “Change in Control” shall mean the occurrence of any of the
following events: (i) an acquisition of any voting securities of Company
by any person or group immediately after which such person or group has
beneficial ownership of more than 50% of the combined voting power of Company’s
then outstanding voting securities; (ii) during any twenty-four (24) month
period, individuals who, as of the beginning of such period, constitute the
Board (the “Incumbent Directors”) cease for any reason to constitute at least a
majority of the Board, provided that any person becoming a director subsequent
to the beginning of such period whose election or nomination for election was
approved by a vote of at least a majority of the Incumbent Directors then on
the Board (either by a specific vote or by approval of the proxy statement of
the Company in which such person is named as a nominee for director, without
written objection to such nomination) shall be an Incumbent Director; provided,
however, that no individual initially elected or nominated as a director of the
Company as a result of an actual or threatened election contest with respect to
directors or as a result of any other actual or threatened solicitation of
proxies by or on behalf of any person other than the Board shall be deemed to
be an Incumbent Director; or (iii) the consummation of (A) a merger,
consolidation or reorganization involving Company, unless the company resulting
from such merger, consolidation or reorganization (the “Surviving Corporation”)
shall adopt or assume this Agreement and the stockholders of Company
immediately before such merger, consolidation or reorganization, own more than
50% of the combined voting power of the Surviving Corporation in substantially
the same proportion as their ownership immediately before such merger,
consolidation or reorganization, (B) a complete liquidation or dissolution
of Company, or (C) a sale or transfer of all or substantially all of the
assets of Company.

 

(g) Income Taxes. The Grantee’s receipt of the
Restricted Stock Units and Cash Compensation is conditioned upon the Grantee
satisfying applicable income tax withholding requirements. The Company shall
have the power and the right to deduct or

 

 

withhold,
or require a participant to remit to the Company, the minimum statutory amount
to satisfy federal, state, and local taxes, domestic or foreign, required by
law or regulation to be withheld with respect to any taxable event arising as a
result of this plan, but in no event shall such deduction or withholding or
remittance exceed the minimum statutory withholding requirements. In the event
the Company cannot (under applicable legal, regulatory, listing or other
requirements, or otherwise) satisfy such tax withholding obligation in such
method, the Company may satisfy such withholding by any one or combination of
the following methods as elected by the grantee: (i) by requiring the
Grantee to pay such amount in cash or check; (ii) by deducting such amount
out of any other compensation otherwise payable to the Grantee; and/or (iii) by
allowing the Grantee to surrender shares of common stock of the Company which (a) in
the case of shares initially acquired from the Company (upon exercise of a
stock option or otherwise), have been owned by the Grantee for such period (if
any) as may be required to avoid a charge to the Company’s earnings, and (b) have
a fair market value on the date of surrender equal to the amount required to be
withheld. For these purposes, the fair market value of the Shares to be
withheld or repurchased, as applicable, shall be determined on the date that
the amount of tax to be withheld is to be determined.

 

Section 3.    
Miscellaneous

 

(a) Notices. Any and all notices,
designations, consents, offers, acceptances and any other communications provided
for herein shall be given in writing and shall be delivered either personally
or by registered or certified mail, postage prepaid, which shall be addressed,
in the case of the Company to both the Chief Financial Officer and the General
Counsel of the Company at the principal office of the Company and, in the case
of the Grantee, to the Grantee’s address appearing on the books of the Company
or to the Grantee’s residence or to such other address as may be designated in
writing by the Grantee.

 

(b) No Right to Continued Employment. Nothing
in the Plans or in this Agreement shall confer upon the Grantee any right to
continue in the employ of the Company, a Parent or any Subsidiary or shall
interfere with or restrict in any way the right of the Company, Parent or any
Subsidiary to remove, terminate or discharge the Grantee at any time for any
reason whatsoever, with or without Cause and with or without advance notice
provided, however that notwithstanding anything in this Agreement to the
contrary, this Agreement is not intended to supersede or otherwise modify the
parties’ rights and obligations under any employment agreement between the
parties.

 

(c) Bound by Plans. By signing this Agreement,
the Grantee acknowledges that she has received a copy of the Plans and has had
an opportunity to review the Plans and agrees to be bound by all the terms and
provisions of the applicable Plan.

 

(d) Successors. The terms of this Agreement
shall be binding upon and inure to the benefit of the Company, its successors
and assigns, and of the Grantee and the beneficiaries, executors,
administrators, heirs and successors of the Grantee.

 

(e) Invalid Provision. The invalidity or
unenforceability of any particular provision thereof shall not affect the other
provisions hereof, and this Agreement shall be construed in all respects as if
such invalid or unenforceable provision had been omitted.

 

 

(f) Modifications. No change, modification or
waiver of any provision of this Agreement shall be valid unless the same is in
writing and signed by the parties hereto.

 

(g) Entire Agreement and Full Satisfaction.
This Agreement, the Plans and the Employment Agreement contain the entire
agreement and understanding of the parties hereto with respect to the subject
matter contained herein and therein and supersede all prior communications,
representations and negotiations in respect thereto.

 

(h) Governing Law. This Agreement and the
rights of the Grantee hereunder shall be construed and determined in accordance
with the laws of the State of Delaware.

 

(i) Headings. The headings of the Sections
hereof are provided for convenience only and are not to serve as a basis for
interpretation or construction, and shall not constitute a part, of this
Agreement.

 

(j) Counterparts. This Agreement may be executed
in counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

IN
WITNESS WHEREOF, this Agreement has been executed and delivered by the parties
hereto as of the           
day of                         ,
              .

 

 

	
  COMPANY

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  MTR
  GAMING GROUP, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  
	
  Its:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  GRANTEE

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