Document:

Exhibit 10.26

 

EMPLOYMENT
AGREEMENT

 

This Employment Agreement (this “Agreement”) is entered into as of September 1,
2004, by and between OpBiz, L.L.C. (“Employer”), and Donna Lehmann (“Employee”).

 

1.                                       Employment.  Employer hereby employs Employee, and Employee
hereby accepts employment by the Employer, as Employer’s Chief Financial
Officer to perform such executive, managerial or administrative duties,
commensurate with Employee’s position, as Employer may specify from time to
time, during the Specified Term as defined in Section 2.

 

2.                                       Effective
Date; Specified Term.  This Agreement
shall be effective as of Employee’s commencement date.  Subject to earlier termination as provided
herein, the term of the Employee’s employment hereunder shall commence on September 1,
2004, and terminate on the first anniversary thereof (the “Specified Term”).  If Employee remains employed by Employer
following the Specified Term, any such employment shall be on an at-will basis,
unless the parties agree in writing to extend the Specified Term.

 

3.                                       Compensation.

 

a.                                       Base Salary.  During
the Specified Term, in consideration of the performance by Employee of Employee’s
obligations hereunder to Employer and its parents, subsidiaries, affiliates,
and joint ventures (collectively, the “Employer Group”), Employer shall pay
Employee an annual base salary (the “Base Salary”)  of $250,000.00.  Any increases in Base Salary shall be at
Employer’s sole discretion and shall be effective on the annual anniversary
date under Section 2 hereof; provided, however, Employer agrees
that the minimum Base Salary increase for Employee shall be five percent (5%)
per annum for the first two years, should Employee remain employed with
Employer.  The Base Salary shall be
payable in accordance with the payroll practices of Employer as in effect from
time to time for Employer’s senior executives.

 

b.                                      Bonus
Compensation.  Employee is eligible to participate
in Employer’s bonus program as formulated from time to time by Employer’s Board
of Directors in its sole discretion (“Employer Bonus Program”).  Such Employer Bonus Program is primarily
based on achievement of Employer’s EBITDA goals and Employee’s performance as
determined by the Board of Directors. 
The annual bonus for the in each year may be up to fifty percent (50%)
of Employee’s Base Salary.  In addition
to the participation by Employee in the Employer Bonus Program, Employer agrees
that Employee shall be paid a one-time transition bonus of $75,000, within
thirty (30) days of the date first set forth above and payable in accordance
with the payroll practices of Employer

 

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c.                                       Employee
Benefit Programs.  During the
Specified Term, Employee shall be entitled to participate in Employer’s
employee benefit plans as are generally made available from time to time to
Employer’s senior executives, subject to the terms and conditions of such
plans, and subject to Employer’s right to amend, terminate or take other
similar actions with respect to such plans.

 

d.                                      Business
Expense Reimbursements.  Employer
will pay or reimburse Employee for all reasonable out-of-pocket expenses,
including travel expenses, Employee incurs during the Specified Term in the
course of performing Employee’s duties under this Agreement upon timely
submission of appropriate documentation to Employer, as prescribed from time to
time by Employer.

 

e.                                       Options.  Subject to the prior approval of the Nevada
Gaming Commission, the availability of an exemption from registration under
applicable securities laws, and the approval of appropriate members of the
Employer Group, Employee is eligible to receive options to purchase three
tenths (.3) of one percent (1%) (subject to dilution
in the discretion of the Employer Group) of equity interest (non-voting) in
Mezzco, LLC (or such other entity as determined by the Employer Group).  Employee’s options shall carry a strike price
based on a $100 million equity value, will vest in three (3) equal
installments on the annual anniversary of Employee’s employment with the
Employer, should Employee remain employed with the Employer, and will be
subject to such terms and conditions as may be set forth in the option grant.

 

4.                                       Extent of
Services.  Employee agrees that the duties and services
to be performed by Employee shall be performed exclusively for members of the
Employer Group.  Employee further agrees
to perform such duties in an efficient, trustworthy, lawful, and businesslike
manner.  Employee agrees not to render to
others any service of any kind whether or not for compensation, or to engage in
any other business activity whether or not for compensation, that is similar to
or conflicts with the performance of Employee’s duties under this Agreement,
without the prior written approval of the Board.  Such services shall be rendered primarily in
Las Vegas, Nevada.

 

5.                                       Policies and
Procedures.  In addition to the terms
herein, Employee agrees to be bound by Employer’s policies and procedures
including drug testing and background checks, as they may be established or
amended by Employer in its sole discretion from time to time.  In the event the terms in this Agreement
conflict with Employer’s policies and procedures, the terms herein shall take
precedence.  Employer recognizes that it
has a responsibility to see that its employees understand the adverse effects
that problem gambling and underage gambling can have on individuals and the
gaming industry as a whole.  Employee
agrees to read, understand, and comply with Employer’s policy prohibiting
underage gaming and supporting programs to treat compulsive gambling.

 

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6.                                       Licensing
Requirements.  Employee represents,
warrants, and acknowledges that Employer is engaged in a business that is or
may be subject to and exists because of privileged licenses issued by
governmental authorities in Nevada and other jurisdictions in which Employer or
Employer Group is engaged or has applied or, during the Specified Term, may
apply to engage in the gaming business. 
If requested to do so by Employer or Employer Group, Employee shall
apply for and obtain any license, qualification, clearance or the like that
shall be requested or required of Employee by any regulatory authority having
jurisdiction over Employer or Employer Group.

 

7.                                       Failure to
Satisfy Licensing Requirement.  If
Employee fails to satisfy any licensing requirement referred to in Section 6
above, or if any governmental authority directs the Employer to terminate any
relationship it may have with Employee, or if Employer shall determine, in
Employer’s reasonable judgment, that Employee was, is or might be involved in,
or is about to be involved in, any activity, relationship(s) or circumstance
that could or does jeopardize the business of Employer or Employer’s Group,
reputation or such licenses, or if any such license is threatened to be, or is,
denied, curtailed, suspended or revoked, this Agreement may be terminated by
Employer and the parties’ obligations and responsibilities shall be determined
by the provisions of Section 11.

 

8.                                       Restrictive
Covenants.

 

a.                                       Competition. 
Employee acknowledges that, in the course of Employee’s responsibilities
hereunder, Employee will form relationships and become acquainted with certain
confidential and proprietary information as further described in Section 8(b).  Employee further acknowledges that such
relationships and information are and will remain valuable to the Employer and
Employer Group and that the restrictions on future employment, if any, are
reasonably necessary in order for Employer and Employer Group to remain
competitive in the gaming industry.  In
recognition of their heightened need for protection from abuse of relationships
formed or information garnered before and during the Specified Term of the
Employee’s employment hereunder, Employee covenants and agrees for the Minimum
Employment Period (defined below)  , not
to directly or indirectly be employed by, provide consultation or other
services to, engage or participate in, provide advice, information or
assistance to, fund or invest in, or otherwise be connected or associated in
any way or manner with, any firm, person, corporation or other entity which is
either directly, indirectly or through an affiliated company or entity, engaged
in gaming or proposes to engage in gaming in Clark County,  Nevada.  
The covenants under this Section 8(a) include
but are not limited to Employee’s covenant not to:

 

i.                                          Make known to any third party the
names and addresses of any of the customers of Employer or any member of
Employer Group, or any other information or data pertaining to those customers;
provided that for purposes of this Section 8(a)(i), the Restrictive Period
shall be for a two

 

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(2) year period immediately following termination of employment
for any reason (the “Restrictive Period”);

 

ii.                                       Call on, solicit, induce to leave
and/or take away, or attempt to call on, solicit, induce to leave and/or take
away, any of the customers of Employer or any member of the Employer Group,
either for Employee’s own account or for any third party; provided that for
purposes of this Section 8(a)(i), the Restrictive
Period shall be for a one (1) year period immediately following
termination of employment for any reason;

 

iii.                                    Call on, solicit and/or take away,
any potential or prospective customer of Employer or any member of the Employer
Group, on whom the Employee called or with whom Employee became acquainted
during employment (either before or during the Specified Term), either for
Employee’s own account or for any third party; provided that for purposes of
this Section 8(a)(i), the Restrictive Period
shall be for a one (1) year period immediately following termination of
employment for any reason; and

 

iv.                                   Approach or solicit any employee or
independent contractor of Employer or any member of the Employer Group with a
view towards enticing such person to leave the employ or service of Employer or
any member of the Employer Group, or hire or contract with any employee or
independent contractor of Employer or any member of the Employer Group, without
the prior written consent of the Employer, such consent to be within Employer’s
sole and absolute discretion; provided that for purposes of this Section 8(a)(i),
the Restrictive Period shall be for a one (1) year period immediately
following termination of employment for any reason.

 

b.                                      Confidentiality. 
Employee covenants and agrees that Employee shall not at any time during
the Specified Term or thereafter, without Employer’s prior written consent,
such consent to be within Employer’s sole and absolute discretion, disclose or
make known to any person or entity outside of the Employer Group any Trade
Secret (as defined below), or proprietary or other confidential information
concerning Employer or any member of the Employer Group, including without
limitation, Employer’s customers and its casino, hotel, and marketing data
practices, procedures, management policies or any other information regarding
Employer or any member of the Employer Group, which is not already and
generally known to the public through no wrongful act of Employee or any other
party.  Employee covenants and agrees
that Employee shall not at any time during the Specified Term, or thereafter,
without the Employer’s prior written consent, utilize any such Trade Secrets,
proprietary or confidential information in any way, including communications
with or contact with any such customer other than in connection with employment
hereunder.  For purposes of this Section 8,
Trade Secrets is defined as data or information, including a

 

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formula, pattern,
compilation, program, device, method, know-how, technique or process, that
derives any economic value, present or potential, from not being generally known
to, and not being readily ascertainable by proper means by, other persons who
may or could obtain any economic value from its disclosure or use.

 

c.                                       Former Employer Information. 
Employee will not intentionally, during the Specified Term, improperly
use or disclose any proprietary information or Trade Secrets of any former
employer or other person or entity and will not bring onto the premises of the
Employer any unpublished document or proprietary information belonging to any
such employer, person or entity unless consented to in writing by such
employer, person or entity.

 

d.                                      Third Party Information. 
Employee acknowledges that Employer and other members of the Employer
Group have received and in the future will receive from third parties their
confidential or proprietary information subject to a duty to maintain the
confidentiality of such information and to use it only for certain limited
purposes.  Employee will hold all such
confidential or proprietary information in the strictest confidence and will
not disclose it to any person or entity or to use it except as necessary in
carrying out Employee’s duties hereunder consistent with Employer’s (or such
other member of the Employer Group’s) agreement with such third party.

 

e.                                       Employer’s Property. 
Employee hereby confirms that Trade Secrets, proprietary or confidential
information and all information concerning customers who utilize the goods,
services or facilities of any hotel and/or casino owned, operated or managed by
Employer constitute Employer’s exclusive property (regardless of whether
Employee possessed or claims to have possessed such information prior to the
date hereof).  Employee agrees that upon
termination of employment, Employee shall promptly return to the Employer all
notes, notebooks, memoranda, computer disks, and any other similar repositories
of information (regardless of whether Employee possessed such information prior
to the date hereof) containing or relating in any way to the Trade Secrets or
proprietary or confidential information of each member of the Employer Group,
including but not limited to, the documents referred to in Section 8(b).  Such repositories of information also include
but are not limited to any so-called personal files or other personal data
compilations in any form, which in any manner contain any Trade Secrets or proprietary or confidential information of
Employer or any member of the Employer Group.

 

f.                                         Notice to Employer. 
Employee agrees to notify Employer immediately of any employers for whom
Employee works or provides services (whether or not for remuneration to
Employee or a third party) during the Specified Term or within the Restrictive
Period.  Employee further agrees to
promptly notify Employer, during Employee’s employment with Employer, of any
contacts made by any

 

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gaming licensee that concern or relate to
an offer of future employment (or consulting services) to Employee.

 

9.                                       Representations.  Employee hereby represents,
warrants and agrees with Employer that:

 

a.                                       The covenants and agreements
contained in Sections 4 and 8 above are reasonable, appropriate and suitable in
their geographic scope, duration and content; the Employer’s agreement to
employ the Employee and a portion of the compensation and consideration to be
paid to Employee hereunder is separate and partial consideration for such
covenants and agreements; the Employee shall not, directly or indirectly, raise
any issue of the reasonableness, appropriateness and suitability of the geographic
scope, duration or content of such covenants and agreements in any proceeding
to enforce such covenants and agreements; and
such covenants and agreements shall survive the termination of this Agreement,
in accordance with their terms;

 

b.                                      The enforcement of any remedy under
this Agreement will not prevent Employee from earning a livelihood, because
Employee’s past work history and abilities are such that Employee can
reasonably expect to find work in other geographic areas and lines of business;

 

c.                                       The covenants and agreements stated
in Sections 4, 6, 7, and 8 above are essential for the Employer’s reasonable
protection;

 

d.                                      Employer has reasonably relied on
these covenants and agreements by Employee; and

 

e.                                       Employee has the full right to enter
into this Agreement and by entering into and performance of this Agreement will
not violate or conflict with any arrangements or agreements Employee may have
or agreed to have with any other person or entity.

 

f.                                         Employee acknowledges and warrants
to Employer the receipt and sufficiency of separate consideration for the
assignment by Employer of Employer’s rights and Employee’s obligation under Section 8.

 

Notwithstanding Section 21 Employee agrees that in the event of
Employee’s breach or threatened breach of any covenants and agreements set
forth in Sections 4 and 8 above, Employer may seek to enforce such covenants
and agreements in court through any equitable remedy, including specific
performance or injunction, without waiving any claim for damages.  In any such event, Employee waives any claim
that the Employer has an adequate remedy at law or for the posting of a bond.

 

10.                                 Termination for
Death or Disability.  Employee’s
employment hereunder shall terminate upon Employee’s death or Disability (as
defined below).  In the event of Employee’s
death

 

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or Disability, Employee (or Employee’s estate
or beneficiaries in the case of death) shall have no right to receive any
compensation or benefit hereunder or otherwise from Employer or any member of
the Employer Group on and after the effective date of termination of employment
other than (1) unpaid Base Salary earned to the date of termination of
employment (which shall be paid on Employer’s next scheduled payroll date), (2) any
earned but unpaid bonus then payable to Employee (which shall be paid on
Employer’s next scheduled payroll date), (3) business expense
reimbursement pursuant to Section 3(d), and (4) benefits provided
pursuant to Section 3(c), subject to the terms and conditions applicable
thereto. For purposes of this Section 10, Disability is defined as
Employee’s incapacity, certified by a licensed physician selected by Employer (“Employer’s
Physician”), which precludes Employee from performing the essential functions
of Employee’s duties hereunder for sixty (60) days or more.  In the event Employee disagrees with the
conclusions of the Employer’s Physician, Employee (or Employee’s
representative) shall designate a physician (“Employee’s Physician”), and
Employer’s Physician and Employee’s Physician shall jointly select a third
physician (“Third Physician”), who shall make the determination which
determination shall be final and binding on the parties hereto.  Employee hereby consents to any examination
or to provide or authorize access to any medical records that may be reasonably
required by Employer’s Physician or the Third Physician in connection with any
determination to be made pursuant to this Section 10.

 

11.                                 (a)                                  Termination
by Employer for Cause.  Employer may
terminate Employee’s employment hereunder for Cause (as defined below) at any
time.  If Employer terminates Employee’s
employment for Cause, Employee shall have no right to receive any compensation
or benefit hereunder or otherwise from Employer or any member of the Employer
Group on and after the effective date of termination of employment other than (1) unpaid
Base Salary earned to the date of termination of employment (which shall be
paid on Employer’s next scheduled payroll date), (2) business expense
reimbursement pursuant to Section 3(d), and (3) benefits provided
pursuant to Section 3(c), subject to the terms and conditions applicable
thereto.  For purposes of this Section 11
(a), Cause is defined as Employee’s (i) failure to abide by Employer’s
policies and procedures, (ii) misconduct, insubordination, or inattention
to Employer’s business, (iii) failure to perform the duties required of
Employee up to the standards established by the Board, or other material breach
of this Agreement (other than as a result of a Disability), or (iv) failure
or inability to satisfy the requirements stated in Section 7 above.

 

(b)                                 At Will Termination
by Employer.  Employer may terminate
Employee at will at any time upon fifteen (15) days prior written notice, or, in
the Employer’s sole discretion, the equivalent of two weeks of Base Salary in
lieu of notice.

 

If Employer terminates Employee at will under
this Section 11(b), Employee shall have no right to receive any
compensation or benefit hereunder or otherwise from Employer or any member of
the Employer Group on and after the effective date of termination of employment
other than (1) unpaid Base Salary earned to the date of termination of

 

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employment (which shall be paid on Employer’s
next scheduled payroll date), (2) business expense reimbursement pursuant
to Section 3(d), and (3) benefits provided pursuant to Section 3(c),
subject to the terms and conditions applicable thereto, and (4) three (3) months
of Base Salary if Employee is terminated in Year 1 of the Specified Term; or
six (6) months of Base Salary if Employee is terminated in Year 2 of the
Specified Term; or nine (9) months of Base Salary if Employee is
terminated in Year 3 of the Specified Term, provided that severance pay
shall  not exceed an amount equivalent to
Base Salary from the date of termination to the date this Employment Agreement
would otherwise expire but for earlier termination.

 

(c)                                  Licensing
Contingency.  Employer acknowledges
that Employee must relinquish other employment to enter into this Employment
Agreement.  Various state licensing
requirements have not yet been finalized with Employer and may not be
granted.  In the event Employee resigns
her position with her current employer and a gaming license is not granted to
the Employer, Employer agrees to compensate Employee for a period of time not
greater than sixty (60) days after Employee ceases employment or until Employee
finds substitute employment, whichever is shorter, with Employer due solely to
the failure of Employer to obtain gaming licenses, due to no fault of Employee.

 

12.                                 Termination by
Employee.  Employee may terminate
Employee’s employment hereunder upon sixty (60) days’ prior written notice to
Employer.  If Employee shall terminate
her employment other than for (a) death, (b) Disability, (c) failure
of Employer to pay Employee’s compensation when due, or (d) material
reductions in Employee’s duties and responsibilities without her consent,
Employee shall have no right to receive any compensation or benefit hereunder
or otherwise from Employer or any member of the Employer Group on and after the
effective date of termination of employment other than (1) unpaid Base
Salary earned to the date of termination of employment (which shall be paid on
Employer’s next scheduled payroll date), (2) any earned but unpaid bonus
then payable to Employee (which shall be paid on Employer’s next scheduled
payroll date), (3) business expense reimbursement pursuant to Section 3(d),
and (4) benefits provided pursuant to Section 3(c), subject to the
terms and conditions applicable thereto.   
Notwithstanding anything contained in this Agreement to the contrary,
Employee agrees that Employee shall not give notice of Employee’s termination of
Employee’s employment hereunder for a minimum of six (6) months from the
date first set forth above, such period of time, coupled with the notice
contained in this Section 12, shall be the “Minimum Employment Period” for
purposes of this Agreement.

 

13.                                 Release; Full
Satisfaction.  Notwithstanding
anything to the contrary, no payments or benefits shall be provided that are in
addition to the payments or benefits that would be provided pursuant to Section 12,
unless and until Employee executes and delivers a standard form of general
release of claims, and such release has become irrevocable; provided, however,
that Employee shall not be required to release any indemnification

 

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rights or
continuing rights to benefits under Employer’s benefit plans, in accordance
with the terms and conditions of such plans.

 

14.                                 Cooperation
Following Termination.  Following
termination of employment of Employee’s employment hereunder for any reason,
Employee agrees to reasonably cooperate with Employer upon the reasonable
request of the Board and to be reasonably available to Employer with respect to
matters arising out of Employee’s services to any member of the Employer
Group.  Employer shall reimburse, or at
Employee’s request, advance Employee for expenses reasonably incurred in
connection with such matters.

 

15.                                 Interpretation;
Each Party the Drafter.  Each of the
parties was represented by or had the opportunity to consult with counsel who
either participated in the formulation and documentation of, or was afforded
the opportunity to review and provide comments on, this Agreement.  Accordingly,
this Agreement and the provisions contained in it shall not be construed or
interpreted for or against any party to this agreement because that party
drafted or caused that party’s legal representative to draft any of its
provisions.

 

16.                                 Indemnification.  Employer shall indemnify Employee to the
fullest extent permitted by Nevada law and the articles of incorporation and
bylaws of the Employer.  Such
indemnification shall include, without limitation, the following:

 

a.                                       Indemnification Involving Third
Party Claims.  Employer shall indemnify Employee if Employee
is a party to or is threatened to be made a party to or otherwise involved in
any threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (each a “Claim”), other than a Claim
by or in the name of Employer or any entity in the Employer Group, by reason of
the fact that Employee is or was serving as an employee or agent of Employer or
any entity in the Employer Group (each an “Indemnifiable Event”), against all
expenses, including attorneys’ fees, judgments, fines, and amounts paid in
settlement (collectively, “Expenses”) actually and reasonably incurred by
Employee in connection with the investigation, defense, settlement or appeal of
such Claim, if Employee either is not liable pursuant to NRS Section 78.138
or acted in good faith and in a manner Employee reasonably believed to be in or
not opposed to the best interests of Employer and, in the case of a criminal
Claim, in addition had no reasonable cause to believe that her conduct was
unlawful.

 

b.                                      Determination of Appropriateness of
Indemnification.  Notwithstanding the foregoing, the
obligations of Employer under Section 16 shall be subject to the condition
that, unless ordered by a court, a determination shall have been made that
indemnification is proper under the specific circumstances, pursuant to and in
accordance with NRS Section 78.751, as in effect from time to time.

 

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c.                                       Indemnification for Defense Only. 
The indemnification authorized by this Section 16 does not include
any actions, suits or proceedings initiated by Employee against Employer or any
entity in the Employer Group.

 

d.                                      Settlement of Claims. 
Neither Employee nor Employer shall settle any Claim without the prior
written consent of the other (such consent not to be unreasonably withheld or
delayed).

 

17.                                 Severability.  If any provision hereof is unenforceable,
illegal or invalid for any reason whatsoever, such fact shall not affect the
remaining provisions hereof, except in the event a law or court decision,
whether on application for declaration, or preliminary injunction or upon final
judgment, declares one or more of the provisions of this Agreement that impose
restrictions on Employee unenforceable or invalid because of the geographic
scope or time duration of such restriction. 
In such event, Employer shall have the option:

 

(A)                              To
deem the invalidated restrictions retroactively modified to provide for the
maximum geographic scope and time duration that would make such provisions
enforceable and valid.

 

Exercise of this option shall not affect Employer’s right to seek
damages or such additional relief as may be allowed by law in respect to any
breach by Employee of the enforceable provisions of this Agreement.

 

18.                                 Survival.  Notwithstanding anything in this Agreement to
the contrary, to the extent applicable, Sections 8 through and including Section 17
shall survive the termination of this Agreement.

 

19.                                 Notice.  For purposes of this Agreement, notices and
all other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given (i) when personally delivered, (ii) the
business day following the day when deposited with a reputable and established
overnight express courier (charges prepaid), or (iii) five (5) days
following mailing by certified or registered mail, postage prepaid and return
receipt requested.  Unless another
address is specified, notices shall be sent to the addresses indicated below:

 

To Employer:

 

 

OpBiz, LLC

3667 Las Vegas Blvd.

Las Vegas, Nevada 89109

Attn: Michael V. Mecca

 

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With a copy to:

 

 

To Employee:

 

Donna Lehmann

9501 Scenic Sunset Dr.

Las Vegas, Nevada 89117

 

or
to such other address as either party shall have furnished to the other in
writing in accordance herewith.

 

20.                                 Tax Withholding.  Notwithstanding any other provision of this
Agreement, Employer may withhold from any amounts payable under this Agreement,
or any other benefits received pursuant hereto, such Federal, state, local and
other taxes as shall be required to be withheld under any applicable law or
regulation.

 

21.                                 Dispute Resolution.

 

a.                                       Any dispute, claim or controversy
arising from or related in any way to this Agreement or the interpretation,
application, breach, termination or validity thereof, including any claim of
inducement of this Agreement by fraud, or arising from or related in any way to
Employee’s employment with Employer will be submitted first to mediation to be
exclusively paid for by Employer up to a maximum of $2,000 in mediation fees
and costs, with each party to bear its own attorney’s fees and costs.  If the parties wish to engage in mediation,
which mediator’s fee and costs exceeds $2,000, the parties shall, after payment
of the first $2,000 by Employer, thereafter equally share the mediator’s fee
and costs.  If the parties are not
successful in resolving disputes pursuant to mediation, the parties agree that
any claim or controversy arising from or in any way related to this Agreement
to the interpretation, application, breach, termination or validity thereof,
including any claim of inducement of this Agreement by fraud or arising from or
related in any way to Employee’s employment with Employer, will be submitted
for final resolution by private arbitration before a single arbitrator and in
accordance with the National Rules for the Resolution of Employment
Disputes and practices then in effect of, the American Arbitration Association,
or any successors thereto (“AAA”), except where those rules conflict with
these provisions, in which case these provisions control; provided, however,
that Employer shall have the right to seek in court equitable relief, including
a temporary restraining order, preliminary or permanent injunction or an
injunction in aid of arbitration, to enforce its rights set forth in Section 8.  The arbitration will be held in Las Vegas,
Nevada.

 

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b.                                      Giving recognition to the
understanding of the parties hereto that they contemplate reasonable discovery,
including document demands and depositions, the arbitrator shall provide for
discovery in accordance with the Nevada Rules of Civil Procedure as
reasonably applicable to this private arbitration.

 

c.                                       To the extent possible, the
arbitration hearings and award will be maintained in confidence, except as may
be required by law or for the purpose of enforcement of an arbitral award.

 

d.                                      Each party shall bear its own
attorney’s fees, costs and expenses incurred in connection with arbitration
proceedings pursuant to this Agreement to arbitrate.  The fees, costs, and expenses of the
arbitrators and related expenses shall be paid by the Employer up to a maximum
of $5,000.  Any fees, costs and expenses
of the arbitrators shall thereafter be shared equally between Employer, on one
hand, and Employee on the other hand.

 

e.                                       Each party hereto waives, to the
fullest extent permitted by law, any claim to punitive or exemplary or
liquidated or multiplied damages from the other.

 

22.                                 No Waiver of Breach
or Remedies.  No failure or delay on
the part of Employer or Employee in exercising any right, power or remedy
hereunder shall operate as a waiver thereof nor shall any single or partial
exercise of any such right, power or remedy preclude any other or further
exercise thereof or the exercise of any other right, power or remedy
hereunder.  The remedies herein provided
are cumulative and not exclusive of any remedies provided by law.

 

23.                                 Amendment or
Modification.  No amendment,
modification, termination or waiver of any provision of this Agreement shall be
effective unless the same shall be in writing and signed by a member of the
Board (other than Employee), and Employee, nor consent to any departure by the
Employee from any of the terms of this Agreement shall be effective unless the
same is signed by a member of the Board (other than Employee).  Any such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given.

 

24.                                 Governing Law;
Venue.  The laws of the State of
Nevada shall govern the validity, construction, and interpretation of this
Agreement, without regard to conflict of law principles.  Each party irrevocably submits to the
exclusive jurisdiction of the courts of the State of Nevada located in Clark
County in any action, suit or proceeding arising out of or relating to this
Agreement or any matters contemplated hereby, and agrees that any such action,
suit or proceeding shall be brought only in such court.

 

25.                                 Headings.  The headings in this Agreement have been
included solely for convenience of reference and shall not be considered in the
interpretation or construction of this Agreement.

 

12

 

26.                                 Assignment.  This Agreement is personal to Employee and
may not be assigned by Employee.

 

 

[THIS SPACE INTENTIONALLY LEFT
BLANK]

 

13

 

27.  Prior
Agreements.  This Agreement shall
supersede and replace any and all other prior discussions and negotiations as
well as any and all agreements and arrangements that may have been entered into
by and between Employee or any predecessor thereof, on the one hand, and
Employee, on the other hand, prior to the date first written above relating to
the subject matter hereof.  Employee
acknowledges that all rights under such prior agreements and arrangements shall
be extinguished.

 

IN WITNESS WHEREOF,
Employer and Employee have entered into this Agreement in Las Vegas, Nevada, as
of the date first written above.

 

 

	
   

  	
  “EMPLOYEE”

  
	
   

  	
   

  
	
   

  	
  DONNA
  LEHMANN

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  “EMPLOYER”

  
	
   

  	
   

  
	
   

  	
  OpBiz,
  L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
  Title

  

 

14Exhibit 10.27

 

EMPLOYMENT
AGREEMENT

 

This Employment Agreement (this “Agreement”)
is entered into as of November 2, 2004, by and between OpBiz, LLC, d/b/a
Planet Hollywood Resort & Casino (“Employer”), and Mark S. Helm (“Employee”).

 

1.                                       Employment.  Employer hereby employs Employee, and
Employee hereby accepts employment by the Employer, as Employer’s Senior Vice
President & General Counsel to perform such executive, managerial or
administrative duties, commensurate with Employee’s position, as Employer may
specify from time to time, during the Specified Term as defined in Section 2.  Employee shall report directly to the Chief
Executive Officer of the Employer.

 

2.                                       Effective
Date; Specified Term.  This Agreement
shall be effective as of Employee’s commencement date.  Subject to earlier termination as provided
herein, the term of the Employee’s employment hereunder shall commence on November 2,
2004 and terminate on the third (3rd)
anniversary thereof (the “Specified Term”). 
If Employee remains employed by Employer following the Specified Term,
any such employment shall be expressly on an at will basis, unless the parties
specifically agree in writing to extend the Specified Term.

 

3.                                       Compensation.

 

a.                                       Base Salary.  During
the Specified Term, in consideration of the performance by Employee of Employee’s
obligations hereunder to Employer and its parents, subsidiaries, affiliates,
and joint ventures (collectively, the “Employer Group”), Employer shall pay
Employee an annual base salary (the “Base Salary”) of $215,000, subject to
annual review (provided that such review shall not entail a reduction in the
Base Salary).  The Base Salary shall be
payable in accordance with the payroll practices of Employer as in effect from
time to time for Employer’s senior executives.

 

b.                                      Bonus
Compensation.  Employee is eligible to participate
in the Planet Hollywood Resort and Casino Discretionary Management Bonus Plan
according to its terms, as amended from time to time by the Board of Directors
in its sole discretion.  Such Bonus Plan
is primarily based on achievement of Employer’s EBITDA goals and Employee
performance as determined by the Board; provided that such Bonus Plan shall
contemplate up to 50% of Employee’s Base Salary being paid out on such EBITDA
goals and Employee performance.  Employee
shall be eligible to receive such other bonuses as may be determined in the
sole discretion of Employer’s Board of Directors.

 

c.                                       Employee
Benefit Programs.  During the
Specified Term, Employee shall be entitled to participate in Employer’s
employee benefit plans as are generally made 

 

1

available from time to time to Employer’s
senior executives, subject to the terms and conditions of such plans, and
subject to Employer’s right to amend, terminate or take other similar actions
with respect to such plans.

 

d.                                      Relocation
Expense Reimbursements.  Employer
requires Employee to relocate to Las Vegas, Nevada as soon as practicable.  Accordingly, Employer will pay or reimburse
Employee for Employee’s reasonable relocation expenses from Orlando, Florida to
Las Vegas, Nevada, such expenses to include: 
(i) one house-hunting trip for Employee and Employee’s spouse; (ii) relocation
expenses in moving Employee’s personal property and household goods, including
packing and transport (and shipment of two (2) automobiles, if necessary);
(iii) final travel expenses for Employee and spouse (and two pets); (iv) direct
and actual closing costs and broker fees on sale of residence in Orlando,
Florida capped at ten thousand dollars ($10,000.00); and (v) temporary
housing in the Las Vegas area for Employee; provided that such temporary
housing shall be subject to Employee’s obligation to use commercially
reasonable best efforts to immediately secure permanent housing and shall in
any event be capped at three thousand dollars ($3,000.00) (collectively, the “Relocation
Expenses”).  Reimbursement of Relocation
Expenses will be fully “grossed-up” by the Company for any imputed income
required to be recognized so that the economic effect to Employee is the same
as if these benefits were provided to Employee on a non-taxable basis.  Notwithstanding the foregoing, Employee
agrees that if Employee resigns within the first six months of employment under
this Agreement, Employee shall repay to Employer all Relocation Expenses paid
by Employer.  If Employee resigns between
the seventh and twelfth month of employment under this Agreement, Employee
shall repay to Employer 50% of the Relocation Expenses.  From and after the first anniversary of
employment, Employee shall have no reimbursement obligation of any kind with
respect to Relocation Expenses.

 

e.                                       Business
Expense Reimbursements.  Employer
will pay or reimburse Employee for all reasonable out-of-pocket expenses,
including travel expenses, bar licensing expenses and continuing legal
education that Employee incurs during the Specified Term in the course of
performing Employee’s duties under this Agreement upon timely submission of
appropriate documentation to Employer, as prescribed from time to time by
Employer.

 

f.                                         Option
Plan.  Employee is eligible to
participate in the Planet Hollywood Resort and Casino Management Incentive
Options Plan (“Options Plan”) according to its terms, as established and
amended from time to time by the Board of Directors in its sole discretion.

 

Pursuant to the terms of the Options Plan,
Employee is eligible to receive options to purchase two tenths of one percent
(.2%) (subject to dilution as set forth in the 

 

2

Options Plan) of equity interest in Mezzco,
LLC (or such other entity as determined by the Options Plan).  Employee’s options shall carry a strike price
based on a $100 million equity value and will vest in three equal installments
on the first three annual anniversary dates of the Specified Term.

 

4.                                       Extent
of Services.  Employee agrees that the duties and services
to be performed by Employee shall be performed exclusively for members of the
Employer Group.  Employee further agrees
to perform such duties in an efficient, trustworthy, lawful, and businesslike
manner.  Employee agrees not to render to
others any service of any kind whether or not for compensation, or to engage in
any other business activity whether or not for compensation, that is similar to
or conflicts with the performance of Employee’s duties under this Agreement,
without the prior written approval of the Board.

 

5.                                       Policies
and Procedures.  In addition to the
terms herein, Employee agrees to be bound by Employer’s policies and procedures
including drug testing and background checks, as they may be established or
amended by Employer in its sole discretion from time to time.  In the event the terms in this Agreement
conflict with Employer’s policies and procedures, the terms herein shall take
precedence.  Employer recognizes that it
has a responsibility to see that its employees understand the adverse effects
that problem gambling and underage gambling can have on individuals and the gaming
industry as a whole.  Employee agrees to
read, understand, and comply with Employer’s policy prohibiting underage gaming
and supporting programs to treat compulsive gambling.

 

6.                                       Licensing
Requirements.  Employee acknowledges
that Employer is engaged in a business that is or may be subject to and exists
because of privileged licenses issued by governmental authorities in Nevada and
other jurisdictions in which Employer or Employer Group is engaged or has
applied or, during the Specified Term, may apply to engage in the gaming
business.  If requested to do so by
Employer or Employer Group, Employee shall apply for and obtain, at Employer’s
cost, any license, qualification, clearance or the like that shall be requested
or required of Employee by any regulatory authority having jurisdiction over Employer
or Employer Group.

 

7.                                       Failure
to Satisfy Licensing Requirement.  If
Employee fails to satisfy any licensing requirement referred to in Section 6
above, or if any governmental authority directs the Employer to terminate any
relationship it may have with Employee, or if Employer shall determine, in
Employer’s sole and exclusive judgment, that Employee was, is or might be
involved in, or is about to be involved in, any activity, relationship(s) or
circumstance that could or does jeopardize the business of Employer or Employer’s
Group, reputation or such licenses, or if any such license is threatened to be,
or is, denied, curtailed, suspended or revoked, this Agreement may be
terminated by Employer and the parties’ obligations and responsibilities shall
be determined by the provisions of Section 11(b).

 

3

8.                                       Restrictive
Covenants.

 

a.                                       Competition. 
Employee acknowledges that, in the course of Employee’s responsibilities
hereunder, Employee will form relationships and become acquainted with certain
confidential and proprietary information as further described in Section 8(b).  Employee further acknowledges that such
relationships and information are and will remain valuable to the Employer and
Employer Group and that the restrictions on future employment, if any, are
reasonably necessary in order for Employer and Employer Group to remain
competitive in the gaming industry.  In
recognition of their heightened need for protection from abuse of relationships
formed or information garnered before and during the Specified Term of the
Employee’s employment hereunder, Employee covenants and agrees for:

 

i.                                          the twelve (12) month period
immediately following termination of employment for any reason (the “Restrictive
Period”), not to, unless required by law or administrative process:

 

A.                                   Make known to any third party the
names and addresses of any of the customers of Employer or any member of
Employer Group, or any other information or data pertaining to those customers;

 

B.                                     Call on, solicit, induce to leave
and/or take away, or attempt to call on, solicit, induce to leave and/or take
away, any of the customers of Employer or any member of the Employer Group,
either for Employee’s own account or for any third party;

 

C.                                     Call on, solicit and/or take away,
any potential or prospective customer of Employer or any member of the Employer
Group, on whom the Employee called or with whom Employee became acquainted
during employment (either before or during the Specified Term), either for
Employee’s own account or for any third party; and

 

D.                                    Approach or solicit any employee or
independent contractor of Employer or any member of the Employer Group with a
view towards enticing such person to leave the employ or service of Employer or
any member of the Employer Group, or hire or contract with any employee or
independent contractor of Employer or any member of the Employer Group, without
the prior written consent of the Employer, such consent to be within Employer’s
sole and absolute discretion.

 

4

b.                                      Confidentiality. 
Employee covenants and agrees that Employee shall not at any time during
the Specified Term or thereafter, without Employer’s prior written consent,
such consent to be within Employer’s sole and absolute discretion, disclose or
make known to any person or entity outside of the Employer Group any Trade
Secret (as defined below), or proprietary or other confidential information
concerning Employer or any member of the Employer Group, including without
limitation, Employer’s customers and its casino, hotel, and marketing data
practices, procedures, management policies or any other information regarding
Employer or any member of the Employer Group, which is not already and generally
known to the public through no wrongful act of Employee or any other
party.  Employee covenants and agrees
that Employee shall not at any time during the Specified Term, or thereafter,
without the Employer’s prior written consent, utilize any such Trade Secrets,
proprietary or confidential information in any way, including communications
with or contact with any such customer other than in connection with employment
hereunder.  For purposes of this Section 8,
Trade Secrets is defined as data or information, including a formula, pattern,
compilation, program, device, method, know-how, technique or process, that
derives any economic value, present or potential, from not being generally
known to, and not being readily ascertainable by proper means by, other persons
who may or could obtain any economic value from its disclosure or use.

 

c.                                       Former Employer Information. 
Employee will not intentionally, during the Specified Term, improperly
use or disclose any proprietary information or Trade Secrets of any former
employer or other person or entity and will not bring onto the premises of the
Employer any unpublished document or proprietary information belonging to any
such employer, person or entity unless consented to in writing by such
employer, person or entity.

 

d.                                      Third Party Information. 
Employee acknowledges that Employer and other members of the Employer
Group have received and in the future will receive from third parties their
confidential or proprietary information subject to a duty to maintain the confidentiality
of such information and to use it only for certain limited purposes.  Employee will hold all such confidential or
proprietary information in the strictest confidence and will not disclose it to
any person or entity or to use it except as necessary in carrying out Employee’s
duties hereunder consistent with Employer’s (or such other member of the
Employer Group’s) agreement with such third party.

 

e.                                       Employer’s Property. 
Employee hereby confirms that Trade Secrets, proprietary or confidential
information and all information concerning customers who utilize the goods,
services or facilities of any hotel and/or casino owned, operated or managed by
Employer constitute Employer’s exclusive property (regardless of whether
Employee possessed or claims to have possessed such information prior to the
date hereof).  Employee agrees that upon
termination of employment, 

 

5

Employee shall
promptly return to the Employer all notes, notebooks, memoranda, computer
disks, and any other similar repositories of information (regardless of whether
Employee possessed such information prior to the date hereof) in the possession
of Employee containing or relating in any way to the Trade Secrets or
proprietary or confidential information of each member of the Employer Group,
including but not limited to, the documents referred to in Section 8(b).  Such repositories of information also include
but are not limited to any so-called personal files or other personal data
compilations in any form, which in any manner contain any Trade Secrets or
proprietary or confidential information of Employer or any member of the
Employer Group.

 

f.                                         Notice to Employer. 
Employee agrees to notify Employer immediately of any employers for whom
Employee works or provides services (whether or not for remuneration to
Employee or a third party) during the Specified Term or within the Restrictive
Period.  Employee further agrees to
promptly notify Employer, during Employee’s employment with Employer, of any
contacts made by any gaming licensee that concern or relate to an offer of
future employment (or consulting services) to Employee.

 

9.                                       Representations.  Employee hereby represents, warrants and
agrees with Employer that:

 

a.                                       The covenants and agreements
contained in Sections 3, 4, 6, 7, and 8 above are reasonable, appropriate, and
suitable in their geographic scope, duration, and content; the Employer’s
agreement to employ the Employee and a portion of the compensation and
consideration to be paid to Employee hereunder is separate and partial
consideration for such covenants and agreements; the Employee shall not,
directly or indirectly, raise any issue of the reasonableness, appropriateness
and suitability of the geographic scope, duration or content of such covenants
and agreements in any proceeding to enforce such covenants and agreements; and such covenants and agreements shall
survive the termination of this Agreement, in accordance with their terms;

 

b.                                      The enforcement of any remedy under
this Agreement will not prevent Employee from earning a livelihood, because
Employee’s past work history and abilities are such that Employee can
reasonably expect to find work in other areas and lines of business;

 

c.                                       The covenants and agreements stated
in Sections 4, 6, 7, and 8 above are essential for the Employer’s reasonable
protection;

 

d.                                      Employer has reasonably relied on
these covenants and agreements by Employee; and

 

6

e.                                       Employee has the full right to enter
into this Agreement and by entering into and performance of this Agreement will
not violate or conflict with any arrangements or agreements Employee may have
or agreed to have with any other person or entity.

 

f.                                         Employee acknowledges and warrants
to Employer the receipt and sufficiency of separate consideration for the
assignment by Employer of Employer’s rights and Employee’s obligation under Section 8.

 

Notwithstanding Section 25, Employee agrees that in the event of
Employee’s breach or threatened breach of any covenants and agreements set
forth in Sections 4 and 8 above, Employer may seek to enforce such covenants
and agreements in court through any equitable remedy, including specific
performance or injunction, without waiving any claim for damages.  In any such event, Employee waives any claim
that the Employer has an adequate remedy at law or for the posting of a bond.

 

10.                                 Termination
for Death or Disability.  Employee’s
employment hereunder shall terminate upon Employee’s death or disability (as
defined below).  In the event of Employee’s
death or disability, Employee (or Employee’s estate or beneficiaries in the
case of death) shall have no right to receive any compensation or benefit
hereunder or otherwise from Employer or any member of the Employer Group on and
after the effective date of termination of employment other than (1) unpaid
Base Salary earned to the date of termination of employment (which shall be
paid on Employer’s next scheduled payroll date), (2) any earned but unpaid
bonus then payable to Employee (which shall be paid on Employer’s next
scheduled payroll date), (3) expense reimbursement pursuant to Section 3(d) and
(e), and (4) benefits provided pursuant to Section 3(c), subject to
the terms and conditions applicable thereto. For purposes of this Section 10,
disability is defined as Employee’s incapacity, certified by a licensed
physician selected by Employer (“Employer’s Physician”), which precludes
Employee from performing the essential functions of Employee’s duties hereunder
for sixty (60) days or more.  In the
event Employee disagrees with the conclusions of the Employer’s Physician,
Employee (or Employee’s representative) shall designate a physician (“Employee’s
Physician”), and Employer’s Physician and Employee’s Physician shall jointly
select a third physician (“Third Physician”), who shall make the determination
which determination shall be final and binding on the parties hereto.  Employee hereby consents to any examination
or to provide or authorize access to any medical records that may be reasonably
required by Employer’s Physician or the Third Physician in connection with any
determination to be made pursuant to this Section 10.

 

11.                                 a.             Termination
by Employer for Cause.  Employer may
terminate Employee’s employment hereunder for Cause (as defined below) at any
time.  If Employer terminates Employee’s
employment for Cause, Employee shall have no right to receive any compensation
or benefit hereunder or otherwise from Employer or any member of the Employer
Group on and after the effective date of termination of employment other than (1) unpaid
Base Salary earned to the date of termination of 

 

7

employment (which shall be paid on Employer’s
next scheduled payroll date), (2) business expense reimbursement pursuant
to Section 3(e), and (3) benefits provided pursuant to Section 3(c),
subject to the terms and conditions applicable thereto.  For purposes of this Section 11, Cause
is defined as Employee’s (a) failure to abide by Employer’s policies and
procedures, (b) misconduct, insubordination, or inattention to Employer’s
business, (c) failure to perform the duties required of Employee up to the
standards established by the Board, or other material breach of this Agreement
(other than as a result of a Disability), or (d) failure or inability to
satisfy the requirements stated in Section 7 above.  Prior to a termination for cause under this
paragraph 11(a), the Employer must provide a written letter of deficiency to
Employee that details Employee’s deficient conduct and thereafter provide
Employee 30 days to cure such deficiency. 
If after 30 days Employer continues to believe cause exists to terminate
the Employee, then Employer shall send a second letter to Employee terminating Employee
that memorializes the failure of Employee to cure the asserted deficiency.

 

b.                                      Termination by
Employer without Cause.  Employer may
terminate Employee “at will” at any time upon fifteen (15) days prior written
notice, or, in the Employer’s sole discretion, the equivalent of two weeks of
Base Salary in lieu of notice.  If
Employer terminates Employee at will under this paragraph, Employee shall have
no right to receive any compensation or benefit hereunder or otherwise from
Employer or any member of the Employer Group on and after the effective date of
termination of employment other than (1) unpaid Base Salary earned to the
date of termination of employment (which shall be paid on Employer’s next
scheduled payroll date), (2) any earned but unpaid bonus then payable to
Employee (which shall be paid on Employer’s next scheduled payroll date), (3) expense
reimbursement pursuant to Section 3(d) and (e), (4) benefits
provided pursuant to Section 3(c), subject to the terms and conditions
applicable thereto, and (5) twelve (12) months of Base Salary.

 

12.           Termination
by Employee.  Employee may terminate
Employee’s employment hereunder upon thirty (30) days’ prior written notice to
Employer.  If Employee terminates his
employment other than for (a) death, (b) disability, (c) failure
of Employer to pay Employee’s compensation when due, (d) an uncured
default of this Agreement by Employer following written notice to Employer and
a reasonable opportunity for Employer to cure, or (e) material reductions
in Employee’s duties and responsibilities without his consent, and (f) a
change of control of Employer other than through a public offering, Employee
shall have no right to receive any compensation or benefit hereunder or
otherwise from Employer or any member of the Employer Group on and after the
effective date of termination of employment other than (1) unpaid Base
Salary earned to the date of termination of employment (which shall be paid on
Employer’s next scheduled payroll date), (2) expense reimbursement pursuant
to Section 3(e), and (3) benefits provided pursuant to Section 3(c),
subject to the terms and conditions applicable thereto. 

 

8

In the event that Employee terminates this
Agreement as a result of Sections 12(c),(d),(e) or (f), Employee shall
have no right to receive any compensation or benefit hereunder or otherwise
from Employer or any member of the Employer Group on and after the effective
date of termination of employment other than (1) unpaid Base Salary earned
to the date of termination of employment (which shall be paid on Employer’s
next scheduled payroll date), (2) any earned but unpaid bonus then payable
to Employee (which shall be paid on Employer’s next scheduled payroll date), (3) expense
reimbursement pursuant to Section 3(d) and (e), (4) benefits
provided pursuant to Section 3, subject to the terms and conditions
applicable thereto, and (5) twelve (12) months of Base Salary.

 

13.           Release;
Full Satisfaction.  Notwithstanding
anything to the contrary, no payments or benefits shall be provided that are in
addition to the payments or benefits that would be provided pursuant to Section 12,
unless and until Employee executes and delivers a standard form of general
release of claims; provided, however, that Employee shall not be required to
release any indemnification rights or continuing rights to benefits under
Employer’s benefit plans, in accordance with the terms and conditions of such
plans.

 

14.           Cooperation
Following Termination.  Following
termination of employment of Employee’s employment hereunder for any reason,
Employee agrees to reasonably cooperate with Employer upon the reasonable
request of the Board and to be reasonably available to Employer with respect to
matters arising out of Employee’s services to any member of the Employer
Group.  Employer shall reimburse, or at
Employee’s request, advance Employee for expenses reasonably incurred in
connection with such matters.

 

15.           Interpretation;
Each Party the Drafter.  Each of the
parties was represented by or had the opportunity to consult with counsel who
either participated in the formulation and documentation of, or was afforded
the opportunity to review and provide comments on, this Agreement.  Accordingly,
this Agreement and the provisions contained in it shall not be construed or
interpreted for or against any party to this agreement because that party
drafted or caused that party’s legal representative to draft any of its
provisions.

 

16.           Indemnification.  Employer shall indemnify Employee to the
fullest extent permitted by Nevada law and the articles of incorporation and
bylaws of the Employer.  Such
indemnification shall include, without limitation, the following:

 

a.                                       Indemnification Involving Third
Party Claims.  Employer shall indemnify Employee if Employee
is a party to or is threatened to be made a party to or otherwise involved in
any threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (each a “Claim”), other than a Claim
by or in the name of Employer or any entity in the Employer Group, by reason of
the fact that Employee is or was serving as an employee or agent of Employer or
any entity in the Employer Group (each an “Indemnifiable Event”), against all
expenses, including attorneys’ fees, judgments, fines, and amounts paid in
settlement (collectively, “Expenses”) actually and 

 

9

reasonably
incurred by Employee in connection with the investigation, defense, settlement or
appeal of such Claim, if Employee either is not liable pursuant to NRS Section 78.138
or acted in good faith and in a manner Employee reasonably believed to be in or
not opposed to the best interests of Employer and, in the case of a criminal
Claim, in addition had no reasonable cause to believe that his or her conduct
was unlawful.

 

b.                                      Determination of Appropriateness of
Indemnification.  Notwithstanding the foregoing, the
obligations of Employer under Section 16 shall be subject to the condition
that, unless ordered by a court, a determination shall have been made that
indemnification is proper under the specific circumstances, pursuant to and in
accordance with NRS Section 78.751, as in effect from time to time.

 

c.                                       Indemnification for Defense Only. 
The indemnification authorized by this Section 16 does not include
any actions, suits or proceedings initiated by Employee against Employer or any
entity in the Employer Group.

 

d.                                      Settlement of Claims. 
Neither Employee nor Employer shall settle any Claim without the prior
written consent of the other (such consent not to be unreasonably withheld or
delayed).

 

17.           Severability.  If any provision hereof is unenforceable,
illegal or invalid for any reason whatsoever, such fact shall not affect the
remaining provisions hereof, except in the event a law or court decision,
whether on application for declaration, or preliminary injunction or upon final
judgment, declares one or more of the provisions of this Agreement that impose
restrictions on Employee unenforceable or invalid because of the geographic
scope or time duration of such restriction. 
In such event, Employer shall have the option:

 

(A)                              To
deem the invalidated restrictions retroactively modified to provide for the
maximum geographic scope and time duration that would make such provisions
enforceable and valid; or

 

(B)                                To
terminate this Agreement pursuant to Section 11 as a Termination without
Cause.

 

Exercise of any of these options shall not affect Employer’s right to
seek damages or such additional relief as may be allowed by law in respect to
any breach by Employee of the enforceable provisions of this Agreement.

 

18.           Survival.  Notwithstanding anything in this Agreement to
the contrary, to the extent applicable, Sections 8 through and including Section 17
shall survive the termination of this Agreement.

 

19.           Notice.  For purposes of this Agreement, notices and
all other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given

 

10

(i) when
personally delivered, (ii) the business day following the day when
deposited with a reputable and established overnight express courier (charges
prepaid), or (iii) five (5) days following mailing by certified or
registered mail, postage prepaid and return receipt requested.  Unless another address is specified, notices
shall be sent to the addresses indicated below:

 

	
   

  	
  To Employer:

  
	
   

  	
   

  
	
   

  	
  OpBiz, LLC

  
	
   

  	
  3667 Las Vegas Boulevard

  
	
   

  	
  Las Vegas, Nevada 89109

  
	
   

  	
  Attn: Michael V. Mecca

  
	
   

  	
   

  
	
   

  	
  To Employee:

  
	
   

  	
   

  
	
   

  	
  Mark S. Helm

  
	
   

  	
  3734 Britainshire Court

  
	
   

  	
  Orlando, Florida 32837

  

 

or to such other address as either party
shall have furnished to the other in writing in accordance herewith.

 

20.           Tax
Withholding.  Notwithstanding any
other provision of this Agreement, Employer may withhold from any amounts
payable under this Agreement, or any other benefits received pursuant hereto,
such Federal, state, local and other taxes as shall be required to be withheld
under any applicable law or regulation.

 

21.           Dispute
Resolution.

 

a.                                       Any dispute, claim or controversy
arising from or related in any way to this Agreement or the interpretation,
application, breach, termination or validity thereof, including any claim of
inducement of this Agreement by fraud, or arising from or related in any way to
Employee’s employment with Employer will be submitted for final resolution by
private arbitration before a single arbitrator and in accordance with the
National Rules for the Resolution of Employment Disputes and practices
then in effect of, the American Arbitration Association, or any successors
thereto (“AAA”), except where those rules conflict with these provisions,
in which case these provisions control; provided, however, that Employer shall
have the right to seek in court equitable relief, including a temporary
restraining order, preliminary or permanent injunction or an injunction in aid
of arbitration, to enforce its rights set forth in Section 8.  The arbitration will be held in Las Vegas,
Nevada.

 

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b.                                      Giving recognition to the
understanding of the parties hereto that they contemplate reasonable discovery,
including document demands and depositions, the arbitrator shall provide for
discovery in accordance with the Nevada Rules of Civil Procedure as
reasonably applicable to this private arbitration.

 

c.                                       To the extent possible, the
arbitration hearings and award will be maintained in confidence, except as may
be required by law or for the purpose of enforcement of an arbitral award.

 

d.                                      Each party shall bear its own costs
and expenses incurred in connection with arbitration proceedings pursuant to
this Agreement to arbitrate.  The costs
and expenses of the arbitrators and related expenses shall be shared equally
between Employer, on one hand, and Employee on the other hand.

 

e.                                       Each party hereto waives, to the
fullest extent permitted by law, any claim to punitive or exemplary or
liquidated or multiplied damages from the other.

 

22.           No
Waiver of Breach or Remedies.  No
failure or delay on the part of Employer or Employee in exercising any right,
power or remedy hereunder shall operate as a waiver thereof nor shall any
single or partial exercise of any such right, power or remedy preclude any
other or further exercise thereof or the exercise of any other right, power or
remedy hereunder.  The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.

 

23.           Amendment
or Modification.  No amendment,
modification, termination or waiver of any provision of this Agreement shall be
effective unless the same shall be in writing and signed by a member of the
Board (other than Employee), and Employee, nor consent to any departure by the
Employee from any of the terms of this Agreement shall be effective unless the
same is signed by a member of the Board (other than Employee).  Any such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given.

 

24.           Governing
Law; Venue.  The laws of the State of
Nevada shall govern the validity, construction, and interpretation of this
Agreement, without regard to conflict of law principles.  Each party irrevocably submits to the
exclusive jurisdiction of the courts of the State of Nevada located in Clark County
in any action, suit or proceeding arising out of or relating to this Agreement
or any matters contemplated hereby, and agrees that any such action, suit or
proceeding shall be brought only in such court.

 

25.           Headings.  The headings in this Agreement have been
included solely for convenience of reference and shall not be considered in the
interpretation or construction of this Agreement.

 

26.           Assignment.  This Agreement is personal to Employee and
may not be assigned by Employee.

 

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27.           Successors
and Assigns.  This Agreement may be
assigned by Employer to its successors and shall be binding upon the successors
and assigns of Employer.

 

28.           Prior
Agreements.  This Agreement shall
supersede and replace any and all other prior discussions and negotiations as
well as any and all agreements and arrangements that may have been entered into
by and between Employee or any predecessor thereof, on the one hand, and
Employee, on the other hand, prior to the Closing Date relating to the subject
matter hereof.  Employee acknowledges
that all rights under such prior agreements and arrangements shall be
extinguished.

 

IN WITNESS WHEREOF,
Employer and Employee have entered into this Agreement in Las Vegas, Nevada, as
of the date first written above.

 

 

	
   

  	
  “EMPLOYEE”

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MARK S. HELM

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  “EMPLOYER”

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OPBIZ, LLC,
  d/b/a PLANET HOLLYWOOD RESORT & CASINO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
  Title

  	
   

  

 

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