Document:

Exhibit 10.14

 

RESTRICTED STOCK AGREEMENT

 

	
Grantee:
    	
 Richard M. Haddrill
    	
 
    	
Grant Date:
    	
 December 22, 2004
    
	
 
    	
 
    
	
Plan:
    	
 2001 Long-Term Incentive Plan
    	
 
    	
Number of Units:
    	
 156,507
    
							

 

RESTRICTED STOCK UNIT AGREEMENT (this “Agreement”) dated as of the Grant Date specified above between Alliance Gaming Corporation, a Nevada corporation (the “Company”), and the Grantee specified above, pursuant to the Plan specified above as in effect and as amended from time to time.

 

1.                                       Incorporation By Reference.  This Agreement is subject in all respects to the terms and provisions of the Plan, all of which are by this reference made a part of and incorporated in this Agreement.  Any capitalized term not defined in this Agreement shall have the meaning ascribed to it in the Plan.  If and to the extent this Agreement and the Plan conflict, the Plan shall control.

 

2.                                       Grant of Restricted Stock Units.  The Company grants to the Grantee, as of the Grant Date specified above, an award of a number of restricted stock units equal to the Number of Units specified above (the “Restricted Stock Units”).  Each Restricted Stock Unit represents the right of the Grantee to receive one share of the common stock, $.10 par value, of the Company (the “Shares”) pursuant to the terms and conditions of this Agreement.

 

3.                                       Vesting of the Restricted Stock Units.  Except as otherwise provided in the Employment Agreement, dated as of June 30, 2004, between the Company and the Grantee, as amended (the “Employment Agreement”), the Restricted Stock Units shall vest (i.e., become nonforfeitable) on October 1, 2010, so long as the Grantee remains continuously employed by the Company as its Chief Executive Officer through such date; provided that the vesting of 50% of the Restricted Stock Units will be accelerated to each of October 1, 2005 and October 1, 2006 upon the attainment, in each case, of strategic and/or financial measures specified for the approximately nine month period ending October 1, 2005 and for the twelve month period ending October 1, 2006 to be mutually agreed to between the Board of Directors of the Company and the Grantee.  Restricted Stock Units that have vested and are no longer subject to forfeiture are referred herein to as “Vested Units.”  Restricted Stock Units that have not yet vested and thus remain subject to forfeiture are referred herein to as “Unvested Units.”

 

4.                                       Settlement of Restricted Stock Units.  Each Vested Unit represents the Grantee’s right to receive one Share as follows:

 

(a)                                  75% of the Shares represented by the Vested Units shall be issued to the Grantee (1) on the later of (a) October 1, 2007 or (b) the first date on which such payment or any portion thereof is no longer subject to the limits of section 162(m) of the Internal Revenue Code in which case that portion of the payment that is no longer subject to such limits shall be issued to the Grantee at the time such limits become inapplicable, or (2) in the event that the Grantee’s employment with the Company is terminated prior to October 1, 2007, on the first date in which such payment or any portion thereof is no longer subject to the limits of Section 162(m) of the Internal Revenue Code in

 

1

 

which case that portion of the payment that is no longer subject to such limits shall be issued to the Grantee at the time such limits become inapplicable.

 

(b)                                 25% of the Shares represented by the Vested Units shall be issued to the Grantee (1) on the later of (a) October 1, 2008 or (b) the first date on which such payment or any portion thereof is no longer subject to the limits of section 162(m) of the Internal Revenue Code in which case that portion of the payment that is no longer subject to such limits shall be issued to the Grantee at the time such limits become inapplicable, or (2) in the event that the Grantee’s employment with the Company is terminated prior to October 1, 2008, on the first date in which such payment or any portion thereof is no longer subject to the limits of Section 162(m) of the Internal Revenue Code in which case that portion of the payment that is no longer subject to such limits shall be issued to the Grantee at the time such limits become inapplicable.

 

5.                                       Rights as a Stockholder.  The Grantee shall have no rights as a stockholder (including, without limitation, any voting rights with respect to the Shares subject to the Restricted Stock Units) with respect to either the Restricted Stock Units granted hereunder or the Shares underlying the Restricted Stock Units, unless and until such Shares are issued in respect of Vested Units, and then only to the extent of such issued Shares.

 

6.                                       Forfeiture of Unvested Units.  Except as otherwise provided in the Employment Agreement, if the Grantee’s ceases to serve as the Company’s Chief Executive Officer, all Unvested Units shall be immediately forfeited.

 

7.                                       Withholding Taxes.  The Company has the right to deduct or otherwise effect a withholding of the amount of any taxes (including, but not limited to, any FICA, FUTA, and similar taxes) required by federal, state, local or foreign laws to be withheld or otherwise deducted and paid with respect to the grant, vesting or settlement of the Restricted Stock Units; or, in lieu of such withholding, to require that the Grantee pay to the Company in cash (or, at the sole discretion of the Board or the Committee, in the form of Shares) the amount of any taxes required to be withheld or otherwise deducted and paid by the Company or its Subsidiary in connection with the grant, vesting or settlement of the Restricted Stock Units.  Unless the tax withholding obligations of the Company or any affiliate are satisfied, the Company will have no obligation to issue a certificate for any of the Shares subject to the Restricted Stock Units (whether vested or unvested).

 

8.                                       Non-transferability.  Neither the Grantee nor the Grantee’s beneficiaries shall sell, exchange, transfer, assign, or otherwise dispose of any Restricted Stock Units (whether vested or unvested) or any rights or interests therein (including any Shares subject to Restricted Stock Units (whether vested or unvested) that have not yet been delivered to the Grantee).  The Grantee shall pledge, encumber, or otherwise hypothecate the Restricted Stock Units (whether vested or unvested) or any rights or interests therein (including any Shares subject to Restricted Stock Units (whether vested or unvested) that have not yet been delivered to the Grantee) in any way at any time.  The Restricted Stock Units (and any undelivered Shares subject thereto) shall not be subject to execution, attachment, or similar legal process.  Any attempted sale, pledge, or other disposition of the Restricted Stock Units (or any undelivered Shares subject thereto) in violation of this paragraph shall be void and of no force or effect.

 

2

 

9.                                       Entire Agreement; Amendment.  This Agreement contains the entire agreement between the parties and supersedes other oral and written agreements previously entered into by the parties concerning the same subject matter.  This Agreement may be modified or rescinded only with the written consent of both parties.

 

10.                                 Governing Law.  Nevada law shall govern this Agreement and its interpretation.  The issuance of the Restricted Stock pursuant to this Agreement shall be subject to, and shall comply with, any applicable requirements of any federal and state securities laws, rules, and regulations (including but not limited to the Securities Act, the Exchange Act, and the respective rules and regulations promulgated thereunder) and any other applicable law or regulation.

 

11.                                 Binding Effect.  This Agreement shall bind and inure to the benefit of the Company and its successors and assigns.

 

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

 

ALLIANCE GAMING CORPORATION

 

 

	
By:
    	
/s/ Mark   Lerner
    	
 
    	
/s/ Richard   M. Haddrill
    
	
 
    	
Mark Lerner,   Secretary
    	
Richard M.   Haddrill
    

 

3Exhibit 10.17

 

SECOND AMENDMENT TO
 HADDRILL EMPLOYMENT AGREEMENT

 

This Second Amendment to the Employment Agreement (the “Second Amendment”) is made and entered into as of June 13, 2005 (the “Effective Date”), by and between Alliance Gaming Corporation, a Nevada corporation (the “Company”), and Richard Haddrill (“Haddrill”).

 

WHEREAS, the Company and Haddrill are parties to that certain Employment Agreement dated as of June 30, 2004 (the “Employment Agreement”) pursuant to which Haddrill is employed as the Company’s Chief Executive Officer;

 

WHEREAS, the Company and Haddrill are parties to that certain Amendment to the Employment Agreement dated as of December 22, 2004 (the “First Amendment”);

 

WHEREAS, pursuant to the Employment Agreement, the Company granted to Haddrill non-statutory stock options to acquire 500,000 shares of the Company’s common stock (the “Employment Agreement Options”) pursuant to the Company’s 2001 Long Term Incentive Plan (the “Plan”);

 

WHEREAS, the award of the Employment Agreement Options has been evidenced by those certain Stock Option Agreements between the Company and Haddrill dated June 30, 2004 (the “June Stock Option Agreement”) and October 27, 2004 (the “October Stock Option Agreement”);

 

WHEREAS, pursuant to that certain Stock Option Agreement between the Company and Haddrill dated January 8, 2004 (the “January Stock Option Agreement”), the Company granted to Haddrill non-statutory stock options to acquire 195,000 shares of the Company’s common stock pursuant to the Plan (the “January Options” and together with the Employment Agreement Options, the “Accelerated Options”);

 

WHEREAS, pursuant to that certain Stock Option Agreement between the Company and Haddrill dated April 23, 2003 (the “April Stock Option Agreement” and together with the June Stock Option Agreement, the October Stock Option Agreement and the January Stock Option Agreement, the “Stock Option Agreements”), the Company granted to Haddrill non-statutory stock options to acquire 50,000 shares of the Company’s common stock pursuant to the Plan (the “April Options” and together with the Accelerated Options, the “Pre-Amendment Options”);

 

WHEREAS, the Board of Directors of the Company has determined that it is in the best interests of the Company to accelerate the vesting of the Accelerated Options;

 

WHEREAS, the Company has determined that the terms of certain of the Stock Option Agreements do not accurately reflect the agreed upon terms of the Pre-Amendment Options with respect to the post-termination exercise period applicable to such Pre-Amendment Options; and

 

WHEREAS, the Company and Haddrill desire to amend the Employment Agreement to (i) accelerate the vesting of the Accelerated Options and (ii) clarify the post-termination exercise provisions of the Pre-Amendment Options in accordance with and subject to the terms and conditions of this Second Amendment.

 

1

 

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

 

1.                                       Effective as of the Effective Date, the Accelerated Options shall be fully vested and immediately exercisable in their entirety by Haddrill.

 

2.                                       Notwithstanding anything in the Employment Agreement, the First Amendment, the Plan or the Stock Option Agreements to the contrary, Haddrill and the Company hereby agree that Haddrill may not sell, encumber, pledge or otherwise transfer any of the shares of the Company’s common stock received upon exercise of the Accelerated Options until the dates set forth in the following schedule and that any attempted transfer shall be without force or effect:

 

(a)                                  With respect to 100% of the shares subject to the January Options, such shares shall become freely transferable on January 1, 2008.

 

(b)                                 With respect to the shares subject to the Employment Agreement Options, (i) one-third of such shares shall become freely transferable on October 1, 2006, (ii) an additional one-third of such shares shall become freely transferable on October 1, 2007 and (iii) the remaining one-third of the shares shall become freely transferable on October 1, 2008.

 

(c)                                  In the event of Change in Control (as defined in the First Amendment), all of the transfer restrictions described in this paragraphs 2(a) and 2(b) hereof shall immediately lapse.

 

(d)                                 In the event that Haddrill’s employment is terminated under paragraphs 7(b) or 7(c) of the Employment Agreement, the transfer restrictions described in paragraphs 2(a) and 2(b) hereof shall lapse with respect to a pro rated number of shares based upon the number of full months between October 1, 2004 and the date of Haddrill’s termination of employment divided by 36 months.

 

3.                                       The Pre-Amendment Options shall become “Portable Options” and subject to the applicable extended post-termination exercise period described in paragraph 4(b) of this Second Amendment in accordance with the following schedule:

 

(a)                                  100% of the April Options shall be considered Portable Options as of the Effective Date.

 

(b)                                 100% of the January Options shall become Portable Options October 1, 2007; provided that Haddrill remains continuously employed by the Company as Chief Executive Officer until such date.

 

(c)                                  With respect to the Employment Agreement Options, (i) one-third of such options shall become Portable Options on October 1, 2005, (ii) an additional one-third of such options shall become Portable Options on October 1, 2006 and (iii) the remaining one-third of such options shall become Portable Options on October 1, 2007, in each case, provided that Haddrill remains continuously employed by the Company as Chief Executive Officer until the applicable date.

 

2

 

(d)                                 In the event that a Change in Control (as defined in the First Amendment) occurs prior to a termination of Haddrill’s employment with the Company, 100% of the Pre-Amendment Options shall immediately become Portable Options upon the consummation of such Change in Control.

 

(e)                                  In the event that Haddrill’s employment is terminated under paragraphs 7(b) or 7(c) of the Employment Agreement prior to October 1, 2007, a pro rated portion of both the January Options and the Employment Agreement Options that have not yet become Portable Options shall become Portable Options based upon the number of full months between October 1, 2004 and the date of Haddrill’s termination of employment divided by 36 months.

 

4.                                       Notwithstanding anything in the Employment Agreement, the First Amendment, the Plan or the Stock Option Agreements to the contrary, Haddrill and the Company hereby agree that following a termination of Haddrill’s employment with the Company for any reason (a) that portion of each of the Pre-Amendment Options that have not become Portable Options pursuant to paragraph 3 of this Second Amendment shall terminate sixty (60) days following the date of termination of employment, unless exercised during such 60-day period, and (b) that portion of each of the Pre-Amendment Options that have become Portable Options pursuant to paragraph 3 of this Second Amendment shall remain exercisable until (i) in the case of the Employment Agreement Options, October 1, 2014, (ii) in the case of the April Options, April 23, 2013, and (iii) in the case of the January Options, July 8, 2011 or the Extension Date (as such term is defined in the January Stock Option Agreement).

 

5.                                       The Company and Haddrill further agree that, in the case of the January Options, should Haddrill remain continuously employed by the Company as Chief Executive Officer until October 1, 2007, he shall be deemed to have satisfied Section 4(c)(v) of the January Stock Option Agreement (which provision provides for an extended post-termination exercise period for the January Options following Haddrill’s resignation from the Board of Directors at the request of the Board of Directors).

 

6.                                       Section 3 of Schedule B-1 to the First Amendment are hereby amended and restated in their entirety to read as follows:

 

“3.                                 Each vested Additional RSU represents Haddrill’s right to receive one (1) share of Company common stock, as follows:

 

a.                                       75% of the shares represented by the vested Additional RSUs shall be issued to Haddrill (1) on the later of (a) October 1, 2007 or (b) the first date on which such payment or any portion thereof is no longer subject to the limits of section 162(m) of the Internal Revenue Code in which case that portion of the payment that is no longer subject to such limits shall be issued to Haddrill at the time such limits become inapplicable, or (2) in the event that Haddrill’s employment with the Company, as amended, is terminated prior to October 1, 2007, on the first date in which such payment or any portion thereof is no longer subject to the limits of Section 162(m) of the Internal Revenue Code in which case that portion of the payment that is no longer subject to such limits shall be issued to Haddrill at the time such limits become inapplicable.

 

3

 

b.                                      The remaining 25% of the shares represented by the vested Additional RSUs shall be issued to Haddrill (1) on the later of (a) October 1, 2008 or (b) the first date on which such payment or any portion thereof is no longer subject to the limits of section 162(m) of the Internal Revenue Code in which case that portion of the payment that is no longer subject to such limits shall be issued to Haddrill at the time such limits become inapplicable, or (2) in the event that Haddrill’s employment with the Company is terminated prior to October 1, 2008, on the first date in which such payment or any portion thereof is no longer subject to the limits of Section 162(m) of the Internal Revenue Code in which case that portion of the payment that is no longer subject to such limits shall be issued to Haddrill at the time such limits become inapplicable.”

 

7.                                       Except as expressly modified by this Second Amendment, the Employment Agreement, the First Amendment and the Stock Option Agreements shall remain unchanged and shall remain in full force and effect.

 

[signatures on next page]

 

4

 

IN WITNESS WHEREOF, the Company and Haddrill have duly executed this Second Amendment as of the date first above written.

 

 

	
 
    	
ALLIANCE GAMING CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mark Lerner
    
	
 
    	
Name:
    	
Mark Lerner
    
	
 
    	
Title:
    	
Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Richard Haddrill
    
	
 
    	
Richard Haddrill
    
					

 

 

[Signature Page to Second Amendment to Haddrill Employment Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}]]