Document:

Exhibit
10.18

 

THIS
AGREEMENT made and entered into this
          day of          ,
2001, by and between TROPICANA CASINO & ENTERTAINMENT RESORT, Iowa Avenue
and Boardwalk, Atlantic City, NJ (hereinafter referred to as the “Employer”),
and the INTERNATIONAL UNION OF OPERATING ENGINEERS, Local 68-68A-68B,
affiliated with the AFL-CIO, 11 Fairfield Place, West Caldwell, New Jersey and
INTERNATIONAL ALLIANCE OF THEATRICAL STAGE EMPLOYEES, AND MOTION PICTURE
MACHINE OPERATORS OF THE UNITED STATES OF AMERICA, LOCAL 917 (hereinafter
referred to jointly as the “Union”).

 

W I T N E S S E T H

 

WHEREAS,
the parties hereto desire to cooperate to stabilize labor relations by
establishing general standard of wages, hours, and other conditions of
employment, and to ensure the peaceful, speedy, and orderly adjustment of
differences that may arise from time to time between the Employer and its
employees, without resort to strikes, lockouts, boycotts, slowdowns or other
economic interferences with the smooth operation of the hotel/casino business
of the Employer.

 

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

 

ARTICLE I - RECOGNITION

 

1.                                       The Employer
recognizes the Union as the sole and exclusive collective bargaining
representative for the classifications listed below employed by the Employer at
its Atlantic City, New Jersey facility.

 

(a)                                  Technician and Wardrobe Leader (those
employees designated as Leaders shall be working employees who, in addition to
their regular duties, shall be responsible for directing assigned employees so
that the work involved is performed at the time, place and in the manner
prescribed by the Employer).

 

 

(b)                                      Stage and Lounge Technicians (those employees responsible
for the successful operation, equipment movement and ordinary maintenance of
all theatrical sound, light, and stage equipment utilized in the showroom and
lounges).

 

(c)                                       Stage Helpers (those employees who work with or under the
direction of an employee designated more experienced or highly trained stage
technician in connection with the staging of showroom entertainment functions).

 

(d)                                      Wardrobe Attendants, Hairdressers and Make-Up Specialists (those
employees engaged exclusively in the preparation and maintenance of costumes,
equipment movement, and special grooming of showroom entertainers).

 

2.                                       Job
classifications expressly excluded from the Agreement are Clerical Employees,
Professional Employees, Guards, Watchmen and Supervisory Employees, as defined
in the National Labor Relations Act.

 

3.                                       It is further
understood and agreed that the Employer shall have the unrestricted right to
contract out warranty work, service contract work, and any other work that
cannot be performed by the house crew due to either lack of technical skill or
knowledge, or lack of equipment or other facilities in the work area, or lack
of available house manpower to perform the work in the time limits required.

 

The
Employer shall also have the unrestricted right to subcontract as it has in the
past. Before subcontracting kinds of work not previously subcontracted, the
Employer shall notify the Union in advance and give the Union an opportunity to
discuss such action, provided there are employees in the bargaining unit
working at the time of the subcontracting who are qualified to perform the
work.

 

If
the Employer elects to contract out the production and/or staging of
entertainment to be presented in the main showroom or lounges, it shall give
the Union as much prior notice as possible. This commitment shall not be
construed as applying to the fabrication or repair of props, scenery, drapes,
costumes or accessories off the premises. In addition, this commitment shall
not be construed as applying to the installation, alteration, fitting, or warranty
work related to such outside contracts which are performed on the Employer’s
premises, provided that such work does not result in the layoff or loss of work
for active employees covered by this Agreement.

 

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Nothing
in this Article shall restrict the Employer’s right to enter into arrangements
with other persons, firms, corporations or organizations to use the Employer’s
showroom or lounges, or any other Employer facility or equipment for the
purpose of presenting industrial and/or commercial shows.

 

4.                                       The Employer
recognizes that the following work shall be performed by employees in the
bargaining unit represented by the Union, except as otherwise permitted by the
collective bargaining agreement:

 

(a)                        The setting up
of all sound, lighting and stage equipment utilized for special events in
ballrooms and convention centers and for other special events;

 

(b)              The setting up
of all sound and lighting systems (including the installation of video cable)
in connection with the broadcasting or taping of shows; and

 

(c)               The handling
and setting up of boxing rings and camera platforms.

 

5.                                       Nothing herein
shall preclude convention groups or their exhibitors from setting up and/or
operating their own booths and equipment during a convention; or the Employer
from using employees outside the bargaining unit to set up and/or operate
equipment for in-house meetings or training sessions.

 

6.                                       The parties
recognize that the State of New Jersey Casino Control Act (“Act”)  provides that
Unions seeking to represent employees licensed under the Act are required to
register with the Casino Control Commission. It is understood and agreed that,
unless exempted from the registration requirements, the Union will as a
condition of this Agreement, so register. Should the Union fail, for any
reason, to obtain an exemption from registration or to obtain timely and valid
registration, or should such registration, once obtained, be suspended or
canceled, the Employer’s recognition of the Union and its obligation to bargain
with the Union and to observe the provisions of Article I, Paragraph 1, hereof,
or to deal with the Union under Article XV, hereof, shall terminate; provided,
however, that upon obtaining an exemption from registration or upon
registration as required under the Act within the term of this Agreement and
the provisions so terminated shall be reinstated, if the Union represents a
majority of the employees within the unit at said time.

 

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ARTICLE II - EMPLOYMENT AND UNION SECURITY

 

1.                                       It shall be a
condition of employment that all employees covered by this Agreement who are
members of the Union in good standing on the effective date of this Agreement
shall remain members in good standing, and those who are not members on the
effective date of this Agreement shall on or after the sixtieth (60th) day
following the effective date hereof, or their hire date, whichever is later,
become members in good standing. In the event any employee fails to comply with
the requirements of this Section to the extent of tendering customary dues and
initiation fees, the Employer shall summarily discharge that employee upon
receipt of written demand therefore from the Union. The sixty (60) day period
during which new employees are not obligated to become members of the Union
shall be designated as a trial or probationary period for the benefit of the
Employer, during which period the Employer has the right to discharge said
employee with or without cause, and neither the probationary employee nor the
Union shall have any recourse to the grievance and arbitration procedure set
forth herein. Probationary employees shall not be covered by this Agreement nor
derive any benefits thereof.

 

2.                                       Whenever
additional employees are required, the Employer shall notify the Union and the
Union shall assist the Employer in obtaining qualified and competent employees,
reserving to itself the right of first referral for potential employees;
provided, however, nothing herein contained shall preclude the Employer from
employing workers on the open market. Whenever an employee is hired or rehired,
the Employer shall, within thirty (30) days, notify the Union in writing of the
name and address of said employee.

 

3.                                       The Union agrees
to furnish the Employer with a memorandum showing the amount of dues payable as
members of the Union by each of the employees covered by this Agreement.
Likewise, the Union agrees to furnish the Employer with a memorandum showing
the amount of initiation fees, if any, payable by each new member covered by
this Agreement. Upon receipt of a signed authorization from the employee, the
Employer agrees to deduct dues and initiation fees from the wages and salaries
of the respective employees pursuant to the aforesaid memoranda. Such written
authorization shall be irrevocable for successive one (1) year periods
consistent with and coincident to the periods or dates of

 

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succeeding
collective bargaining agreements between the parties hereto. Notwithstanding
the foregoing, if any employee notifies the Employer and Union in writing
fifteen (15) days before the expiration of the time periods stated above of his
wish to revoke its authority, the same shall be honored.

 

4.                                       The Union will
defend, indemnify, and save harmless the Employer against and from any and all
claims, demands, liabilities, and disputes arising out of or by reason of
action taken or not taken by the Employer for the purpose of complying with Section
3 of this Article.

 

ARTICLE III - MANAGEMENT RIGHTS

 

1.                                       The Union
recognizes that the management of the hotel/casino and direction of the
workforce is vested exclusively in the Employer including, but not limited to,
the right to schedule work; to assign work and working hours to employees; to
establish quality and production standards and most efficient utilization of
the employee’s services; to hire, to transfer, to discharge or relieve
employees from duty because of lack of work; to install and utilize the most
efficient equipment; and to create or eliminate any or all operations or job
classifications, subject to the seniority provisions herein contained. The
Employer shall have the right to make and enforce reasonable rules for the
conduct of employees not inconsistent with the provisions of this Agreement.

 

2.                                       It is
understood that all management rights held prior to the execution of this
Agreement, other than those specifically surrendered by this Agreement,
continue to be retained by the Employer.

 

ARTICLE IV - CONTROL AND DISCHARGE

 

1.                                         The Employer
shall have the sole right to direct and control his employees. The Employer
reserves the right, which right is hereby recognized by the Union, to hire, retain,
promote, demote, transfer, lay off, suspend, discharge or rehire according to
the requirements of the business and according to skill and efficiency, giving
due consideration

 

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to
seniority. The Employer shall have the unquestioned right to suspend or
discharge an employee for actions such as, but not limited to, dishonesty,
willful misconduct, incompetence, drinking or drunkenness or other intoxication
on the job, insubordination, or other just cause, or participation in a proven,
deliberate slowdown, work stoppage, or strike in violation of this Agreement;
provided, however, the Union does not waive its right to arbitrate, in cases of
incompetence or insubordination.

 

2.                                       It is further
understood and agreed that, as a condition of employment, Union members
employed in the Employer’s casino/hotel are required to be licensed under the
Act. If a Union member fails to obtain such proper license or loses such a
license for any reason, the employee shall be released from employment without
pay, and such release shall not be subject to the grievance and arbitration
procedure of this Agreement nor shall the employee initiate any other action
against the Employer; provided, however, that should the Union member’s license
subsequently be issued or reinstated, the employee will be eligible for re-employment
if a vacancy exists in the employee’s job classification.

 

ARTICLE V - SENIORITY

 

1.                                       For the purpose
of this Agreement, seniority shall be defined as length of continuous service
from the employee’s last employment date and hour with the Employer in the
bargaining unit covered by this Agreement.

 

2.                                       The seniority
of employees who successfully complete the sixty (60) day probationary period
set forth in Article II, Paragraph 1 above, -shall -date from the employee’s date of hire and hour in a
bargaining unit job.

 

3.                                       Seniority shall
be broken by any of the following events:

 

(a) Voluntary quit;

 

(b) Discharge for cause;

 

(c) Failure because of layoff, or any other reason to perform any work
for the Employer for six (6) months (one [1] year for illness), or a period
equal to the affected employee’s seniority at the time he last ceased active
work for the Employer, whichever period is shorter;

 

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(d) Failure to report to work on the next scheduled work day after the
Employer sends notice of recall from layoff by telegram to the employee’s last
known address or failure to so report on the second scheduled work day after
such notice is sent by registered or certified mail;

 

(e) Failure to report for work upon expiration of a leave of absence;
or

 

(f) Absence from work
without notice to the Employer for two (2) consecutive days.

 

4.                                       Failure to
report or failure to notify the Employer under Subsections (d), (e) or (f)
shall not result in a break of seniority, if such failure is due to conditions
beyond the employee’s control and shall not constitute a voluntary leaving of
work without good cause.

 

ARTICLE VI - NO DISCRIMINATION

 

1.                                       There shall be
no discrimination against any employee because of Union membership or lawful
Union activities or because of age, race, religion, color, national origin,
ancestry, marital status, sex, liability for service in the U.S. Armed forces
or as required by law.

 

2.                                       The parties
recognize and agree to comply with the Equal Employment Opportunity and
Affirmative Action requirements of the New Jersey Casino Control Act, and the
affirmative action program adopted by the Employer in compliance therewith.

 

3.                                       In this
Agreement, whenever the context so requires, the masculine gender shall include
the feminine.

 

ARTICLE VII - VACATIONS

 

1.                                       All employees
covered by this Agreement, at the conclusion of their first anniversary year of
employment shall be entitled to one (1) week of vacation, with pay.

 

2.                                       All employees
covered by this Agreement who shall have been regularly employed for two (2) years
but less than eight (8) years shall receive two (2) weeks’ vacation, with pay.

 

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3.                                       All employees
covered by this Agreement who shall have been regularly employed for more than
eight (8) years but less than ten (10) years shall receive three (3) weeks’
vacation, with pay.

 

4.                                       All employees
covered by this Agreement who shall have been regularly employed for more than
ten (10) years as of their first anniversary date after the effective date of
this Agreement, shall receive four (4) weeks’ vacation, with pay. The fourth
week may, with mutual consent, be taken on a per day basis, provided the
employee gives the employer ten (10) days’ notice of the day to be taken.

 

5.                                       Vacations shall
be taken at the convenience of the Employer, but seniority shall be recognized
in scheduling the same.

 

6.                                       All employees
who have completed more than one (1) year of employment whose employment is
terminated for reasons other than cause, shall be entitled to a proration of
earned vacation for the year in which the termination or retirement of said
employee occurs.

 

ARTICLE VIII - HOLIDAYS

 

1.                                       All employees
covered by this Agreement shall be granted a holiday with pay, on the following
days:

 

	
  New
  Year’s Day

  	
   

  	
  Memorial
  Day

  
	
   

  	
   

  	
   

  
	
  Independence
  Day

  	
   

  	
  Labor
  Day

  
	
   

  	
   

  	
   

  
	
  Veteran’s
  Day - (November 11)

  	
   

  	
  Christmas
  Day

  
	
   

  	
   

  	
   

  
	
  Thanksgiving
  Day

  	
   

  	
   

  

 

and,
subject to supervisory approval, two (2) other personal holidays of his choice.

 

2.                                       Holiday pay
shall consist of eight (8) hours at the straight-time hourly rate shown on
Schedule A-1. Employees who are required to work on a holiday shall be paid
time and one-half (1 1/2) for work performed on said holiday at the appropriate
rate, in addition to the holiday pay.

 

3.                                       In order to
qualify for holiday pay, the employee must report for work on his last
scheduled day before said holiday and his first scheduled day after said
holiday, unless said requirement is specifically waived by the Employer. If an
employee is scheduled to

 

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work
on a holiday but does not report for work, he shall not receive holiday pay
unless he shall have been excused by his Employer from working on said holiday.

 

4.                                       When pay day
falls on a holiday specified in the contract, employees will be paid on the day
before.

 

ARTICLE IX - HOURS OF WORK - OVERTIME

 

1.                                       It is expressly
understood and agreed that the work day and week may fluctuate and that the Employer
shall at all times have the right to schedule its employees, in accordance with
the needs of the business. Employees’ work schedules will be posted in advance.
Method of payment, i.e., performance rate versus hourly rate, shall not
change within the employees’ established pay period.

 

2.                                       Employees may,
but need not be paid at the performance rate, in which case they are paid at a
predetermined rate for a given performance, which duties shall include all
performance related work within the show call, or may be paid at an hourly rate
for all hours worked.

 

3.                                       When so
scheduled, the normal work week for “performance rate employees” shall consist
of six (6) days, and the normal work day shall consist of six and one-half (6
1/2) consecutive hours, including a one-half (1/2) hour meal period.

 

4.                                       For employees
paid “per performance,” all time worked in excess of six and one-half (6 1/2)
hours per day and less than eight (8) hours per day will be compensated for at
the straight-time hourly rate as shown in Schedule A-1. All hours worked in
excess of eight (8) hours per day will be compensated for at one and one-half
(1 1/2) times the straight-time hourly rate as shown on Schedule A-1. All time
worked on the seventh (7th) day of the employee’s work week shall be
compensated for at one and one-half (1 1/2) times the appropriate hourly rate.

 

5.                                       When so
scheduled, a normal work week for “per hour rate employees” shall consist of
five (5) consecutive days, and the normal work day shall consist of eight (8) consecutive
hours, including a one-half (1/2) hour meal period that will start prior to the
end of the sixth (6th) hour of work.

 

9

 

6.                                       For employees
paid “per hour,” all work performed in excess of eight (8) hours in any one
day, or forty (40) hours in any one week shall be considered as overtime and
paid for at the appropriate overtime rate.

 

7.                                       The Employer
shall have the right to establish four (4) ten (10) hour shifts. Overtime shall
be paid for all hours worked beyond ten (10) in any one day, or forty (40) in
any one week at one and one-half (1 1/2) times the basic hourly wage rate. If
the Employer utilizes this option after a sixty (60) day trial period, either
party may notify the other in writing that it no longer desires to retain this
provision in the Contract and upon such notice, this shift option shall
terminate.

 

8.                                       It is
understood that in the case of either performance or hourly pay, there shall be
no pyramiding of overtime and premium payment, and employees working under this
Agreement will not receive both daily and weekly overtime or overtime and
premium pay for the same hours worked, but shall receive only one, whichever is
higher.

 

9.                                       Overtime and
holiday time shall be paid for and shall not be compensated for by giving
employees time off.

 

10.                                 The time that
meals may be taken will be as per Employer’s direction.

 

11.                                 When an
employee is scheduled at the per hour rate, the Employer will not attempt to
circumvent the payment of overtime after forty (40) hours by scheduling
employees to work less than eight (8) hours in any of the first five (5) days
of the week. This shall not constitute a guarantee of work per day or per week.

 

12.                                 Regular
full-time employees being paid under the performance rate shall be normally
scheduled to work six (6) days of six and one-half (6 1/2) hours each, for each
week they are scheduled to work except:

 

(a)                                  where the
Employer is unable to provide such work because of conditions beyond its
control such as labor disputes, accidents, fires, mechanical breakdowns,
floods, power failures, civil insurrection, cancellation of a performance by a
performer, Act of God, necessary business decisions, or other circumstances
beyond the control of the Employer; or

 

(b)                                 where the
employees are laid off, terminated, or otherwise not available for work, or the
showroom is closed.

 

10

 

13.           Regular
full-time employees being paid under the hourly rate shall be normally
scheduled to work either five (5) days of eight (8) hours each, or four (4) days
of ten (10) hours each, for each week they are scheduled to work except:

 

(a)           where the Employer is unable
to provide such work because of conditions beyond its control such as labor
disputes, accidents, fires, mechanical breakdowns, floods, power failures,
civil insurrection, cancellation of a performance by a performer, Act of God,
necessary business decisions, or other circumstances beyond the control of the
Employer; or

 

(b)           where the employees are laid
off, terminated, or otherwise not available for work, or the showroom is
closed.

 

14.           Nothing in this
Labor Agreement shall preclude the Employer from utilizing part-time or
temporary employees or assigning regular full-time employees who have been or
are being laid off to lesser amounts of daily or weekly work. Nothing in this
Agreement shall prevent the Employer from assigning to employees more than the
normal number of hours of work per day or per week.

 

15.           If the Employer
reduces the schedule of performances to one performance per day, it will
exercise reasonable effort to give the Union seven (7) days’ advance notice.
Employees affected by the reduced schedule shall have the option, on a
seniority basis, of being laid off rather than working on a reduced schedule
for the duration of the reduction. Employees electing to be laid off shall be
recalled on a seniority basis when the Employer resumes its regular weekly
schedule. Regular full-time employees being paid under the performance rate who
are scheduled to work only one performance per day shall be paid for four (4) hours
at the combined performance rate (3 1/4 hours) and the hourly rate (3/4 hour)
for each day so worked.

 

16.           Regular
full-time employees shall be entitled to a minimum of eight (8) hours’ rest
between calls. The rest period shall begin when the employee is released from
work (“goes off the clock”). If the employee is called back before he has
completed eight (8) hours of rest, he will be paid at one and one-half (1 1/2)
times his regular rate for all hours worked until eight (8) hours have elapsed
from his release time. After eight (8) hours have elapsed, the employee will revert
to straight time.

 

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Example:

 

	
  A.

  	
  Employee
  released from work

  	
    4:00 a.m.

  
	
  B.

  	
  Employee
  call

  	
  10:00
  a.m.

  
	
  C.

  	
  Employee
  released from work

  	
    6:00 p.m.

  

 

Employee entitlement:

 

2
hours at 1 1/2x (10:00 a.m. - 12:00 Noon)

 

6
hours at lx (12:00 Noon - 6:00 p.m.)

 

17.           In the event
that all employees of the Employer agree to be paid on a bi-weekly basis, the
Union agrees that bargaining unit employees will be paid in the same manner.

 

ARTICLE X - WAGES

 

1.             All employees
working in any of the classifications in “Schedule A-1” annexed hereto shall be
paid each week for services performed.

 

2.             Attached hereto
and marked “Schedule A-1”  and made part of this Agreement are
the minimum wage scales applicable to the employees under normal circumstances.

 

3.             In an emergency
situation when an employee may be called back to work after completing his
normal work, the minimum work call shall be four (4) hours and the employee
shall be compensated for no less than four (4) hours at the applicable
straight-time or overtime rate, regardless of the number of hours actually
worked by the Employee.

 

ARTICLE XI - BENEFITS

 

1.             Welfare
Fund: The Employer agrees to make contributions to the
Union Welfare Fund as per “Schedule B”  annexed hereto. All contributions
are for all straight times hours worked or paid, not to exceed 2,080 hours per
year, for every employee covered hereby, retroactive to the first (1st) day worked on behalf of
employees who have completed their probationary period.

 

2.             Pension
Fund: The Employer agrees to make contributions to the
Union Pension Fund as per “Schedule B”  annexed hereto. All contributions
are for all straight time hours

 

12

 

worked
or paid, not to exceed 2,080 hours per year, for every employee covered hereby,
retroactive to the first (1st) day worked on behalf of employees who have completed their
probationary period.

 

3.             The
contributions provided for herein shall be for the purpose of allowing the Fund,
under financially responsible conditions, to maintain the level of benefits
that existed on the date of the execution of this Agreement. To this end, the
Employer(s) will collectively designate a voting trustee on the Fund(s).

 

4.             In
the event the Employer(s) determine that any other Participating Employer currently
pays or is allowed by the Union to pay lesser contributions than the
Employer(s), then at such time the Employer(s) shall automatically reduce its
contribution to the lowest rate of any Participating Employer. In the event the
Union allows a Participating Employer to withdraw from the Fund and such
Participating Employer obtains health insurance for its Union employees at a
lower rate, then the Employer(s) may automatically reduce its Fund contribution
to the same rate.

 

5.             The
Union will have the right thirty (30) days prior to the end of each contract
year to reallocate wage increases to the Health and Welfare, Pension or Annuity
Funds. Funds to be paid in accordance with existing language in the collective
bargaining agreement. Annuity cannot, during the year, go back and forth to
wages and annuity ..... it must be one or the other.

 

6.             Annuity
Fund: The Employer agrees to make contributions to the
Union Annuity Fund for each hour worked by employees covered herein, as per “Schedule
B” annexed hereto.

 

ARTICLE XII - JURY DUTY

 

1.             Non-probationary
employees who serve as a juror on regularly scheduled work day or days shall be
paid the difference only between the amount received by him for such

 

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service
and his daily base hourly rate for eight (8) hours, to a maximum of ten (10) days
for each call. The employee will provide his immediate supervisor with:

 

(a)           Seventy-two (72) hours’
notice of such case.

 

(b)           Copy of court order to “appear.”

 

(c)           Official court documentation
as to appearance and amount paid Juror by court.

 

2.             It is understood that
employees will be expected to report to work if excused from Jury Duty during
normal work hours which reasonably coincide with scheduled work time.

 

ARTICLE XIII - FUNERAL LEAVE

 

Members
of the bargaining unit shall be permitted time off, with pay, to a maximum of
three (3) scheduled work days for the purpose of arranging and attending the
funeral of a member of the employee’s immediate family, defined as mother,
father, spouse, brother, sister, children, mother-in-law, father-in-law and
grandparents. Pay shall be the daily base hourly rate for eight (8) hours. The
Employer reserves the right to require official notification and/or proof of
death and attendance at the funeral.

 

ARTICLE XIV - VISITATION

 

Representatives of the Union shall have the
right to visit the Hotel at reasonable times in order to investigate matters
covered by this Agreement and grievances hereunder. Said visits shall not be
made at such time or in such manner as to interfere with or prevent the orderly
operation of the Employer’s business, and Union representatives shall announce
their presence to the Employer when coming upon the premises.

 

ARTICLE XV - GRIEVANCES AND
ARBITRATION

 

1.             For the purpose of this
Agreement, a grievance is defined as a complaint, dispute, or controversy
between the parties as to the application or interpretation of this

 

14

 

Agreement.
All grievances shall be presented by either party to the other within five (5) working
days, excluding Saturdays and Sundays, of their origin in order to be raised in
a timely fashion. All grievances not raised in a timely fashion or not
processed in accordance with the time periods set out below shall be considered
waived and abandoned.

 

2.             The following procedure
shall be followed exclusively in the settlement of all grievances arising under
this Agreement:

 

Step 1

 

The
first step of the grievance procedure shall be between the employee and/or the
shop steward and the employee’s supervisor. If the employee is dissatisfied
with the action taken by the supervisor on his grievance, the employee shall be
able to reduce the grievance to writing and present the written grievance to
his supervisor within two (2) working days of the supervisor’s verbal response.

 

Step 2

 

If
the grievance is not resolved in Step 1, then the shop steward shall forward
the written grievance to the department head within three (3) working days of
the response of the supervisor.

 

Step 3

 

In
the event that the grievance is not adjusted satisfactorily after the timely
presentation of the written grievance to the department head, then a meeting
between the Union Business Agent and a designated representative of the
Employer shall be arranged, within ten (10) working days after the department
head has given his response.

 

Step 4

 

In
the event that the grievance is not adjusted satisfactorily in Step 3, then the
matter may be referred to final and binding arbitration within fourteen (14)
calendar days, after the Employer has sent its Step 3 answer to the grievance.

 

It is understood that the parties, by mutual agreement, may extend the
time periods for processing grievances.

 

In the event that the Employer is the aggrieved party, the Employer may
begin the processing of the grievance at Step 3.

 

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Grievances shall not be processed by shop stewards or Union officials during
working hours, unless mutually agreed to between the Union and the Employer.

 

In the event that a grievance is referred to arbitration, the grievance
shall be submitted to the American Arbitration Association with the request
that the Association send to the parties a list of arbitrators pursuant to its
procedures. A grievance so submitted shall be heard by the arbitrator, and his
decision or award shall be final and binding upon the parties hereto. The
expenses of the arbitrator shall be borne equally by the Union and the
Employer. Only one (1) grievance at a time shall be heard by the arbitrator
unless otherwise agreed to by the parties. The arbitrator shall have no power
to add to, subtract from, or modify any of the terms of this Agreement, and his
authority is hereby limited expressly to this Agreement and its terms.

 

ARTICLE XVI - CASUAL EMPLOYEE

 

1.             A casual
employee shall be defined as an employee required to supplement specific
classifications in the normal house crew on an intermittent basis. Hiring
procedures and licensing requirements will be the same as for regular
employees. Provisions of Articles II (Sec. 1,3,&4), V, VII, VIII, IX, XI,
XII, XIII and XV shall not apply to casual employees.

 

2.             Wages for
casual employees will be paid in accordance with “Schedule A-2,” annexed hereto
and made a part hereof. The premium wages paid for casual work and casual
employees exempts the Employer from payment of contributions to the Health and
Welfare, Pension and Annuity Funds.

 

3.             The minimum
work call for casual employees will be four (4) hours with overtime to be paid
at one and one-half (1 1/2) times the applicable casual rate for hours
worked in excess of eight (8) hours per day.

 

4.             Casual
employees will answer a call with those hand tools specified by the Employer.
The Employer will notify the Union of hand tools required when the call is made
for casual employees.

 

5.             If a casual
employee works for the Employer forty (40) or more hours per week for a period
of three (3) consecutive months and continues in the employ of the Employer on

 

16

 

that
basis, he shall automatically enter the probationary period for regular
employees, as described in Article II.

 

6.             Any casual who
has worked 240 hours in a calendar year will be entitled upon request from the
Union to be advised of the reason for the removal of the employee from the
casual list and may request a meeting with the Employer to discuss the issue.
This in no way alters the limitation that casuals have no access to the
grievance and arbitration procedure.

 

ARTICLE XVII - NO STRIKES, NO
LOCKOUTS

 

1.             Both the Union
and the Employer recognize the service nature of the casino/hotel business and
the duty of the Employer to render continuous and hospitable service to the
public in the way of lodging, food and other necessary accommodations.
Therefore, the Union agrees that it will not call, engage in, participate in,
or sanction any strike, sympathy strike, work stoppage, picketing, sit-down,
sit-in, boycott, refusal to handle merchandise, or other interference with the
conduct of the Employer’s business for any reason whatsoever, including the
dealing by Employer with non-Union suppliers or deliverymen; nor will the Union
interfere with any guest or tenant at the hotel engaged in selling or
exhibiting non-Union made merchandise or in so doing employing non-Union help.
Any such action shall be a violation of this Agreement. Upon written
telegraphic notice of a violation to the Union office, the Union and its officers
shall take immediate affirmative action and will use its best efforts, to
include all actions legally available to prevent, end or avert any such
aforementioned activity or the threat thereof by any of its officers, members,
representatives or employees, either individually or collectively, including,
but not limited to, publicly disavowing any such action and ordering all such
officers, representatives, employees or members who participate in such
unauthorized activity to cease and desist from same immediately and to return
to work and comply with its orders. Nothing in this Agreement shall be
construed to limit or restrict the right of any of the parties to this
Agreement to pursue fully any and all remedies available under law in

 

17

 

the
event of a violation of this Article. Instructions and orders referred to in
this Section will be confirmed in writing, and copies will be furnished by the
Union to the Employer.

 

2.             In
consideration of the foregoing, the Employer agrees that it shall not lockout
its employees. The term “lockout” does not refer to the discharge, termination
or layoff of employees by the Employer for any reason in the exercise of its
rights as set forth in any provision of this Agreement, nor does “lockout”
include the Employer’s decision to terminate or suspend work or any portion
thereof for any reason, other than for the sole purpose of supporting a
management position during a collective bargaining impasse.

 

3.             Any employee or
employees inciting, encouraging, or participating in any strike, slowdown,
picketing, sympathy strike, or other activity in violation of this Agreement is
subject to immediate discharge.

 

ARTICLE XVIII - SAFETY

 

1.             The Union and
the Employer agree that it is in the best interests of all members of the
bargaining unit to maintain a safe and healthy work place and to observe all
safety requirements.

 

2.             Violations of
established safety policies and procedures shall be grounds for disciplinary
action up to and including discharge.

 

ARTICLE XIX - NEW JERSEY CASINO CONTROL ACT

 

The parties hereto recognize and agree that the State of New Jersey
Casino Control Act (P.L. 1977, C. 110) (the “Act”) and the rules and
regulations thereunder contain provisions requiring the licensing of employees,
the certifications of this and other provisions regulating and controlling “Casino
Hotel” employees of the Employer, and that this Agreement is subject hereto in
all respects.

 

18

 

ARTICLE XX - MOST FAVORED EMPLOYER

 

Recognizing
the competitive nature of the casino/hotel industry and the desirability of
maintaining a balance among the hotels in Atlantic City, the Unions agree that
if they enter into any contract with another employer operating a casino/hotel
or contractor on behalf of a casino/hotel in Atlantic City, containing terms as
to wages, hours or conditions which are more favorable to said other employer
than the terms or conditions of this Contract, then, at the Employer’s option,
said terms shall be incorporated into this Agreement and become supplementary
thereto. The Unions agree that upon demand of the Employer they shall exhibit
to the Employer or its authorized representative any agreement entered into
with another casino/hotel in Atlantic City, New Jersey. A failure on the part
of the Employer to insist upon the application of this Section, whether said
failure is intentional or a result of an oversight, shall not constitute a
waiver of the Employer’s right to demand enforcement of this provision on other
occasions. Nothing herein contained shall be interpreted to render this
provision applicable to a hotel or motel which does not own or operate a casino
in Atlantic City.

 

ARTICLE XXI - UNION JURISDICTIONAL DISPUTES

 

Both
Local Union #68-68A-68B of the International Union of Operating Engineers,
AFL-CIO, and Local Union #917 of the International Alliance of Theatrical Stage
Employees and Motion Picture Machine Operators of the United States and Canada,
agree that whenever unresolved disputes arise involving work jurisdiction, the
Employer will have the right to assign the work, and the Unions agree to settle
the dispute.

 

The
Employer’s assignments are specifically exempt from the grievance and
arbitration procedure provided in this Agreement. The Unions also agree to hold
the Employer harmless from all claims and liabilities by reason of action taken
or not taken by the Employer for the purpose of complying with this Article.

 

19

 

ARTICLE XXII - MULTI-LOCATION EMPLOYER

 

Employees
may be assigned to work at other properties owned and operated by their parent
company if parent company owns or operates more than one property in Atlantic
City. Employees shall first be offered the opportunity to take such an
assignment in accordance with their shop seniority, by shift. If an
insufficient number of employees accept the offered assignment, employees shall
be assigned in inverse order of shop seniority. In either case, the employee so
selected must have the requisite skill and ability to perform the assigned
work. Employees so assigned shall be paid at the rate of time and one-half (1
1/2) their base hourly rate for all hours worked on such assignment. This in no
way affects the Employers’ use of casuals.

 

ARTICLE XXIII - SAVINGS CLAUSE

 

If
any clause in this Agreement or portion thereof is found to be illegal or
invalid, the remainder of the clause or provision shall remain unaffected, and
all other provisions of the Contract shall remain in full force and effect.

 

ARTICLE XXVI - TERM OF CONTRACT

 

1.             This Agreement, including
Schedules A-1, A-2 and B, shall become effective July 1, 2001, and shall
continue in full force and effect until midnight, June 30, 2006, and from year
to year thereafter, unless either party gives written notice to the other at
least sixty (60) days prior to any expiration date as to its desire to modify
or terminate this Agreement.

 

2.             The parties expressly
recognize that, although this Agreement is essentially identical to the
contracts between the Union and other Atlantic City casino/hotels,
nevertheless, this Agreement is solely between the Employer herein and the
Union. Therefore, other casino/hotel practices under, or interpretations of,
contract language similar or identical to that in this Agreement shall not be
controlling under this Agreement, and evidence of other casino/hotel practices
or interpretations shall not be offered or admitted in any grievance discussion
or arbitration or other legal proceeding between the

 

20

 

Employer
and the Union, unless both parties agree to the discussion or introduction of
such evidence.

 

IN
WITNESS THEREOF, the parties hereto have set their hands and seals the day and
year first above written, in Atlantic County, State of New Jersey.

 

 

	
  TROPICANA CASINO &

  ENTERTAINMENT RESORT

  	
   

  	
  INTERNATIONAL UNION OF OPERATING

  ENGINEERS, LOCAL 68-68A-68B-68C, AFL-CIO

  
	
   

  	
   

  	
   

  
	
  [ILLEGIBLE]

  	
   

  	
  /s/
  Vincent J. Giblin

  
	
   

  	
   

  	
  VINCENT
  J. GIBLIN

  
	
   

  	
   

  	
  Business
  Manager

  
	
   

  	
   

  	
   

  
	
  [ILLEGIBLE]

  	
   

  	
  /s/
  Thomas P. Giblin

  
	
   

  	
   

  	
  THOMAS
  P. GIBLIN

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/
  Stephen Mc Guire

  
	
   

  	
   

  	
  STEPHEN
  MC GUIRE

  
	
   

  	
   

  	
  Recording
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/
  Edward Boylan

  
	
   

  	
   

  	
  EDWARD
  BOYLAN 

  
	
   

  	
   

  	
  Business
  Representative

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  INTERNATIONAL ALLIANCE OF

  THEATRICAL STAGE EMPLOYEES AND

  MOTION PICTURE MACHINE OPERATORS

  OF THE UNITED STATES OF AMERICA

  AND CANADA, LOCAL 917

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [ILLEGIBLE]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

21

 

	
  SCHEDULE
  “A-1”

  	
   

  	
  TROPICANA

  

 

WAGE
RATES - FULL-TIME EMPLOYEES

 

	
  CLASSIFICATION

  	
   

  	
  7/1/01

  	
   

  	
  7/102

  	
   

  	
  7/1/03

  	
   

  	
  7/1/04

  	
   

  	
  7/1/05

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Technician & Wardrobe Lead

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hourly Rate

  	
   

  	
  $

  	
  23.47

  	
   

  	
  $

  	
  23.87

  	
   

  	
  $

  	
  24.27

  	
   

  	
  $

  	
  24.67

  	
   

  	
  $

  	
  25.07

  	
   

  
	
  Performance

  	
   

  	
  $

  	
  84.49

  	
   

  	
  $

  	
  85.93

  	
   

  	
  $

  	
  87.37

  	
   

  	
  $

  	
  88.81

  	
   

  	
  $

  	
  90.25

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stage & Lounge Technician

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hourly Rate

  	
   

  	
  $

  	
  21.90

  	
   

  	
  $

  	
  22.30

  	
   

  	
  $

  	
  22.70

  	
   

  	
  $

  	
  23.10

  	
   

  	
  $

  	
  23.50

  	
   

  
	
  Performance

  	
   

  	
  $

  	
  78.84

  	
   

  	
  $

  	
  80.28

  	
   

  	
  $

  	
  81.72

  	
   

  	
  $

  	
  83.16

  	
   

  	
  $

  	
  84.60

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stage Helper Wardrobe Att., Hairdressers & Make-up
  Specialist

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hourly Rate

  	
   

  	
  $

  	
  20.73

  	
   

  	
  $

  	
  21.13

  	
   

  	
  $

  	
  21.53

  	
   

  	
  $

  	
  21.93

  	
   

  	
  $

  	
  22.33

  	
   

  
	
  Performance

  	
   

  	
  $

  	
  74.63

  	
   

  	
  $

  	
  76.07

  	
   

  	
  $

  	
  77.51

  	
   

  	
  $

  	
  78.95

  	
   

  	
  $

  	
  80.39

  	
   

  

 

RATE WITH
$.55 ADDED (Plus Pension Diversions)

 

	
  CLASSIFICATION

  	
   

  	
  7/101

  	
   

  	
  7/1/02

  	
   

  	
  7/1/03

  	
   

  	
  7/1/04

  	
   

  	
  7/1/05

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Technician & Wardrobe Lead

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hourly Rate

  	
   

  	
  $

  	
  24.17

  	
   

  	
  $

  	
  24.72

  	
   

  	
  $

  	
  25.27

  	
   

  	
  $

  	
  25.82

  	
   

  	
  $

  	
  26.37

  	
   

  
	
  Performance

  	
   

  	
  $

  	
  87.01

  	
   

  	
  $

  	
  88.99

  	
   

  	
  $

  	
  90.97

  	
   

  	
  $

  	
  92.95

  	
   

  	
  $

  	
  94.93

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stage & Lounge Technician

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hourly Rate

  	
   

  	
  $

  	
  22.60

  	
   

  	
  $

  	
  23.15

  	
   

  	
  $

  	
  23.70

  	
   

  	
  $

  	
  24.25

  	
   

  	
  $

  	
  24.80

  	
   

  
	
  Performance

  	
   

  	
  $

  	
  81.36

  	
   

  	
  $

  	
  83.34

  	
   

  	
  $

  	
  85.32

  	
   

  	
  $

  	
  87.30

  	
   

  	
  $

  	
  89.28

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stage Helper Wardrobe Att., Hairdressers & Make-up
  Specialist

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hourly Rate

  	
   

  	
  $

  	
  21.43

  	
   

  	
  $

  	
  21.98

  	
   

  	
  $

  	
  22.53

  	
   

  	
  $

  	
  23.08

  	
   

  	
  $

  	
  23.63

  	
   

  
	
  Performance

  	
   

  	
  $

  	
  77.15

  	
   

  	
  $

  	
  79.13

  	
   

  	
  $

  	
  81.11

  	
   

  	
  $

  	
  83.09

  	
   

  	
  $

  	
  85.07

  	
   

  

 

22

 

OVERTIME RATE (WITH $.55 INCLUDED and Pension
Diversions)

 

	
  CLASSIFICATION

  	
   

  	
  7/1/01

  	
   

  	
  7/1/02

  	
   

  	
  7/1/03

  	
   

  	
  7/1/04

  	
   

  	
  7/105

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Technician & Wardrobe Lead

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hourly Rate

  	
   

  	
  $

  	
  36.26

  	
   

  	
  $

  	
  37.08

  	
   

  	
  $

  	
  37.91

  	
   

  	
  $

  	
  38.73

  	
   

  	
  $

  	
  39.56

  	
   

  
	
  Performance

  	
   

  	
  $

  	
  130.52

  	
   

  	
  $

  	
  133.49

  	
   

  	
  $

  	
  136.46

  	
   

  	
  $

  	
  139.43

  	
   

  	
  $

  	
  142.40

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stage & Lounge Technician

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hourly Rate

  	
   

  	
  $

  	
  33.90

  	
   

  	
  $

  	
  34.78

  	
   

  	
  $

  	
  35.55

  	
   

  	
  $

  	
  36.38

  	
   

  	
  $

  	
  37.20

  	
   

  
	
  Performance

  	
   

  	
  $

  	
  122.04

  	
   

  	
  $

  	
  125.01

  	
   

  	
  $

  	
  127.98

  	
   

  	
  $

  	
  130.95

  	
   

  	
  $

  	
  133.92

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stage Helper Wardrobe Att., Hairdressers & Make-up
  Specialist

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hourly Rate

  	
   

  	
  $

  	
  32.15

  	
   

  	
  $

  	
  32.97

  	
   

  	
  $

  	
  33.80

  	
   

  	
  $

  	
  34.62

  	
   

  	
  $

  	
  35.45

  	
   

  
	
  Performance

  	
   

  	
  $

  	
  115.72

  	
   

  	
  $

  	
  118.69

  	
   

  	
  $

  	
  121.66

  	
   

  	
  $

  	
  124.63

  	
   

  	
  $

  	
  127.60

  	
   

  

 

23

 

	
  SCHEDULE
  “A-2”

  	
   

  	
  TROPICANA

  

 

WAGE
RATES - CASUAL EMPLOYEES

 

	
  CLASSIFICATION

  	
   

  	
  7/1/01

  	
   

  	
  7/1/02

  	
   

  	
  7/1/03

  	
   

  	
  7/1/04

  	
   

  	
  7/1/05

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Technician & Wardrobe Lead

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hourly Rate

  	
   

  	
  $

  	
  28.24

  	
   

  	
  $

  	
  29.19

  	
   

  	
  $

  	
  30.09

  	
   

  	
  $

  	
  31.04

  	
   

  	
  $

  	
  31.99

  	
   

  
	
  Performance

  	
   

  	
  $

  	
  101.66

  	
   

  	
  $

  	
  105.08

  	
   

  	
  $

  	
  108.32

  	
   

  	
  $

  	
  111.74

  	
   

  	
  $

  	
  115.16

  	
   

  

 

OVERTIME
RATE

 

	
  CLASSIFICATION

  	
   

  	
  7/1/01

  	
   

  	
  7/102

  	
   

  	
  7/1/03

  	
   

  	
  7/1/04

  	
   

  	
  7/1/05

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Technician & Wardrobe Lead

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hourly Rate

  	
   

  	
  $

  	
  42.36

  	
   

  	
  $

  	
  43.79

  	
   

  	
  $

  	
  45.14

  	
   

  	
  $

  	
  46.56

  	
   

  	
  $

  	
  47.99

  	
   

  
	
  Performance

  	
   

  	
  $

  	
  152.50

  	
   

  	
  $

  	
  157.63

  	
   

  	
  $

  	
  162.49

  	
   

  	
  $

  	
  167.62

  	
   

  	
  $

  	
  172.75

  	
   

  

 

24

 

	
  SCHEDULE ”B”

  	
   

  	
  TROPICANA

  

 

BENEFITS

 

	
  BENEFIT

  	
   

  	
  7/1/01

  	
   

  	
  7/1/02

  	
   

  	
  7/1/03

  	
   

  	
  7/1/04

  	
   

  	
  7/1/05

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Welfare Fund

  	
   

  	
  $

  	
  3.95

  	
   

  	
  $

  	
  4.05

  	
   

  	
  $

  	
  4.25

  	
   

  	
  $

  	
  4.45

  	
   

  	
  $

  	
  4.65

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pension Fund

  	
   

  	
  $

  	
  1.55

  	
   

  	
  $

  	
  1.70

  	
   

  	
  $

  	
  1.85

  	
   

  	
  $

  	
  2.00

  	
   

  	
  $

  	
  2.15

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Annuity Fund

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  On Hours Worked:

  	
   

  	
  $

  	
  .25

  	
   

  	
  $

  	
  .25

  	
   

  	
  $

  	
  .25

  	
   

  	
  $

  	
  .25

  	
   

  	
  $

  	
  .25

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  On Hours Worked and Paid
  (Including OT, Holiday and Vacation):

  	
   

  	
  $

  	
  2.05

  	
   

  	
  $

  	
  2.45

  	
   

  	
  $

  	
  2.80

  	
   

  	
  $

  	
  3.20

  	
   

  	
  $

  	
  3.60

  	
   

  

 

25Exhibit
10.19

 

EMPLOYMENT
AGREEMENT

 

This Employment Agreement
(the “Agreement”) is entered into effective as of January 1, 2009 (the “Effective
Date”), by and between TROPICANA ENTERTAINMENT HOLDINGS, LLC, a Delaware
limited liability company (the “Company”), and SCOTT C. BUTERA (“Executive”) to
provide the terms and conditions for Executive’s employment with the Company
and its subsidiaries from time to time (together, the “Group”).

 

The Company and Executive
have agreed that Executive will be employed by the Company and will serve as
the Company’s President and Chief Executive Officer, upon the terms and
conditions set forth herein.

 

Accordingly, and in
consideration of the mutual obligations set forth in this Agreement, which
Executive and the Company agree are sufficient, Executive and the Company agree
as follows:

 

1.                                      Term of Employment.

 

The term of this Agreement
(the “Term of Employment”) shall commence as of the Effective Date and, subject
to the termination provisions of paragraph 4 hereof, continue until the
second anniversary of the Effective Date; provided that commencing on the
second anniversary of the Effective Date and each anniversary thereof, the Term
of Employment shall automatically be extended by 12 months unless either the
Company or Executive provides notice to the other party no less than 30 days
before the end of the Term of Employment of its or his intention not to extend
the Term of Employment.

 

2.                                      Position and Responsibilities.

 

During the Term of
Employment, Executive shall be employed as the Company’s President and Chief
Executive Officer, with the general executive powers and authority that
accompany those positions.  Executive
shall report directly and exclusively to the Board of Managers of the Company
(the “Board”) and shall have the duties and responsibilities that are typically
performed by the president and chief executive officer of a substantially
similar enterprise, as well as any other duties consistent with his positions
that are assigned to Executive by the Board. 
Executive agrees to comply with such lawful policies of the Company as
may be adopted from time to time. 
Although Executive may be reasonably required to travel from time to
time for business reasons, his principal place of employment shall be the
Company’s principal corporate offices in Las Vegas, Nevada or wherever the
Company and Executive agree.  Executive
shall devote all of his full business time and his best efforts, skill, and
attention to the Group’s business and affairs and to promoting the Group’s best
interests.  Notwithstanding the
foregoing, nothing herein shall preclude Executive from (a) serving on the
boards of directors or managers of other companies, corporations, and/or
charitable organizations (subject to the approval of the Board, such approval
not to be unreasonably withheld), (b) engaging in charitable activities
and community affairs, and (c) managing his personal investments and
affairs, provided that any such activities do not interfere in more than a de
minimis manner with the proper performance of his duties and responsibilities
hereunder and such activities comply with the limitations set forth in
paragraph 5.a hereof.

 

 

3.                                      Compensation.

 

For all of his services
during the Term of Employment, Executive shall receive the following compensation:

 

a.                                       Base Salary.  Executive’s annual base salary shall be
$1,100,000 (as may be increased from time to time, the “Base Salary”).  The Board will review the Base Salary at
least annually and may increase it at any time for any reason, in its sole
discretion; however, it shall have no obligation to do so.

 

b.                                      Bonus.  In addition to his Base Salary, Executive
shall be eligible to receive an annual cash performance bonus of between 50%
(the “Minimum Annual Bonus”) and 150% of his Base Salary (collectively, the “Bonus”)
for each calendar year ending during the Term of Employment if, and to the
extent that, Executive remains employed by the Company on the last day of such
calendar year and corporate performance objectives established by the Board are
achieved, as determined by the Board or a committee thereof in its sole
discretion.  Factors that shall be taken
into account in determining the amount of Executive’s Bonus shall include the
performance of the Company relative to its competitors, Executive’s success in
recruiting senior executives and other key employees, whether the Company is
successful in re-establishing operations in Atlantic City, New Jersey and the
Executive’s performance in connection with the Company’s restructuring.

 

c.                                       Payment of Bonus.  Payment of the Bonus
shall be made as soon as practicable after the end of the calendar year during
which such Bonus is earned, but in any event during the calendar year following
the calendar year to which such Bonus relates.

 

d.                                      Benefits.  Executive shall be eligible to participate in
all Company benefit plans and programs as are generally available for its
senior executives, and Executive’s benefits shall be based on the terms of the
applicable plan as established by the Company from time to time.  Nothing in this Agreement shall restrict the
Company’s ability to change or terminate any or all of its employee benefit
plans and programs from time to time; nor shall anything in this Agreement
prevent any such change from affecting Executive.

 

e.                                       Success Fee.  When
a plan of reorganization that is confirmed by the Bankruptcy Court (the “Plan”)
becomes effective (the “Plan Effective Date”) during Executive’s tenure as
Chief Executive Officer of the Company, Executive shall be eligible to receive
and shall be paid a one-time payment (the “Success Fee”), which shall be in an
amount targeted to be between $750,000 and $1,500,000; provided, however,
that if Executive is entitled to and has been or will be paid the Severance
Benefit (as defined herein) and if Executive is terminated without Cause (under
paragraph 4.a(iii) hereof) or Executive terminates his employment for
Good Reason (under paragraph 4.a(v) hereof) within twelve months
after the Plan Effective Date, Executive shall not be eligible to receive the
Success Fee.  The Board shall determine
the amount of the Success Fee in its sole discretion after taking into account
the timing of the Company’s emergence from reorganization, the enterprise value
of the Company upon such emergence and the 

 

2

 

Board’s
evaluation of the Executive’s performance in connection with the Company’s
reorganization.  If Executive terminates
employment due to his death or Disability, resigns his employment with Good
Reason (as defined herein) or Executive’s employment is terminated by the
Company without Cause (as defined herein), in each case, before the Plan
Effective Date, Executive shall be entitled to receive payment of the Success
Fee if the Plan Effective Date occurs within nine months after the date of
termination of employment.  Executive
shall not be entitled to all or any portion of the Success Fee if the Company
terminates his employment for Cause or Executive resigns his employment without
Good Reason before the Plan Effective Date.

 

4.                                      Termination

 

a.                                       Termination of Employment.  Executive’s
employment may be terminated in accordance with this paragraph 4.  Any such termination of employment shall also
terminate the Term of Employment.

 

(i)                                     Termination by the Company for Cause.  The Board may
terminate Executive’s employment for Cause at any time after:

 

(1)                                  providing
Executive with 15 business days’ advance written notice explaining the
circumstances that justify the termination (a “Termination Notice”); and

 

(2)                                  except in the
case of termination for an event covered by paragraph 4.a(ii)(2) hereof,
providing Executive with the opportunity to appear before the Board prior to
any vote to terminate Executive’s employment for Cause, which opportunity may
occur during the 15-business-day notice period.

 

(ii)                                  “Cause” means any of the following:

 

(1)                                  Executive’s
breach of any material term of this Agreement that is not corrected within 10
days after delivery of a Termination Notice to Executive with respect to such
breach;

 

(2)                                  Executive’s
commission of, or formal prosecutorial charge or indictment alleging commission
of, a felony or any crime of similar status, any crime involving fraud, or any
crime involving moral turpitude (other than motor vehicle related) (it being
agreed that in the case of a crime involving moral turpitude, only to the
extent such crime materially and adversely affects the business, standing or
reputation of the Company or any other member of the Group);

 

(3)                                  Executive’s
breach of fiduciary duty to the Company or any other member of the Group that
has any material and adverse impact on the Company that is not corrected within
10 days after delivery of a Termination Notice to Executive with respect to
such breach;

 

3

 

(4)                                  Executive’s
misappropriation of funds or material property of the Company or any other
member of the Group;

 

(5)                                  Executive’s
refusal to follow the lawful directives of the Board without a materially valid
business justification that is not corrected within 10 days after delivery of a
Termination Notice to Executive with respect to such refusal;

 

(6)                                  Executive’s
fraud related to the Company;

 

(7)                                  Executive’s
material dishonesty, disloyalty, gross negligence, or willful misconduct, where
such dishonesty, disloyalty, gross negligence, or willful misconduct is
reasonably likely to result, in substantial and material damage to the Company
or any other member of the Group and that is not corrected within 10 days after
delivery of a Termination Notice to Executive with respect to such event;

 

(8)                                  Executive’s
willful and material violation of any of the Company’s code of conduct or employment policies that is not corrected
within 10 days after delivery of a Termination Notice to Executive with respect
to such violation;

 

(9)                                  Executive’s
material violation of any federal, state, or local laws that could result in a
direct or indirect financial loss to the Company or any other member of the
Group or damage the reputation of the Company or any other member of the Group;

 

(10)                            any Approval
(as defined herein) that Executive is required to hold to perform any of his
duties or responsibilities for the Company or its subsidiaries is terminated
and/or suspended by any Gaming Authority (as defined herein); or

 

(11)                            Executive shall
otherwise have failed to comply in any material respect with paragraph 16
hereof.

 

For the definition of “Cause,” no act or
omission by the Executive will be “willful” unless it is made by him in bad
faith or without a reasonable belief that his act or omission was in the best
interests of the Company or the Group. 
Any act, or failure to act, based upon the advice of counsel to the
Company or any member of the Group shall be presumed to be done, or omitted to
be done, by the Executive in good faith and in the best interests of the
Company and the Group.

 

(iii)                               Termination by the Company without Cause.  Upon at least 15
days’ prior written notice to Executive, the Company may terminate Executive’s 

 

4

 

employment
under this Agreement for any reason other than (1) Cause or (2) due
to Executive’s death or Disability, in which case the Company is obligated to
pay Executive in accordance with paragraph 4.b hereof.

 

(iv)                              Death or Disability.  Executive’s
employment by the Company will immediately terminate upon Executive’s death and
at the option of either Executive or the Company, exercisable upon written
notice to the other party, may terminate upon the Executive’s Disability.  For purposes of this Agreement, “Disability”
will occur if (1) Executive becomes eligible for benefits under a
long-term disability policy provided by the Company, if any, or (2) Executive
has become unable, due to physical or mental illness or incapacity, to
substantially perform the essential duties of his employment with reasonable
accommodation for a period of 90 days or an aggregate of 180 days during any
consecutive 12 month period, as determined by an independent physician approved
by the Company and Executive.

 

(v)                                 Termination by Executive for Good Reason.  Executive may
terminate his employment for Good Reason within 90 days of the occurrence of an
event constituting Good Reason.  “Good
Reason” shall mean the occurrence, during the Term of Employment, of any of the
following actions or failures to act, but in each case only if it is not
consented to by Executive in writing:  (1) a
material adverse change in Executive’s duties, reporting responsibilities,
titles, or elected or appointed offices as in effect immediately prior to the
effective date of such change; (2) any material reduction or material
failure to pay when due the Executive’s Base Salary, Minimum Annual Bonus, or
Success Fee; (3) the Company’s breach of any material term of this
Agreement that is not corrected within 10 days after delivery of a notice to
the Company with respect to such breach; or (4) the failure of the Company
to obtain the assumption in writing of this Agreement by any successor to, or
an acquirer of, all or substantially all of the assets of the Company on or
prior to a merger, consolidation, sale or similar transaction; provided,
however, that Executive first notifies the Company in writing of an
occurrence constituting Good Reason within 60 days of the occurrence thereof
and the Company fails to cure such occurrence within 30 days of such
notice.  For purposes of this definition,
none of the actions described in clauses (1) through (4) of this
paragraph 4.a(v) shall constitute “Good Reason” with respect to
Executive if it was an isolated and inadvertent action not taken in bad faith
by the Company and if it is remedied by the Company within 10 days after
receipt of written notice thereof given by Executive.

 

(vi)                              Termination by Executive without Good
Reason.  Executive may terminate his employment under
this Agreement without Good Reason upon at least 30 days’ prior written notice
to the Company.

 

5

 

b.                                      Consequences of Termination of Employment.

 

(i)                                     Termination by the Company without Cause or
by Executive for Good Reason.  Executive shall be entitled to and shall
receive the severance benefits described in this paragraph 4.b(i) if
Executive’s employment is terminated without Cause (under paragraph 4.a(iii) hereof)
or Executive terminates his employment for Good Reason (under paragraph 4.a(v) hereof)
in the amount of $2,000,000, which shall be reduced to $1,000,000 in the event
that the “OpCo Debtors” do not exit bankruptcy by October 31, 2009 (the “Severance
Benefit”); provided that if such Severance Benefit becomes due before
the Plan Effective Date, the Company shall be obligated to pay the maximum
amount that may be provided at such time in accordance with section 503(c)(2) of
the Bankruptcy Code (as conclusively determined by the Bankruptcy Court for the
District of Delaware), which shall be paid over the one-year period commencing
on Executive’s termination of employment in ratable installments in accordance
with the Company’s payroll practices in effect on Executive’s date of
termination or as agreed between the Company and Executive, subject to
paragraph 4.b(v) and paragraph 18.c hereof and to the extent permitted by
Internal Revenue Code Section 409A and the regulations and guidance
promulgated thereunder (collectively “Section 409A”); provided, however,
that if Executive has been paid the Success Fee and if Executive is terminated
without Cause (under paragraph 4.a(iii) hereof) or Executive
terminates his employment for Good Reason (under paragraph 4.a(v) hereof)
within twelve months after the Plan Effective Date, the amount of the Severance
Benefit shall be reduced by the amount of the Success Fee paid to
Executive.  In addition and in any event,
for a period of one year following the date of such termination of Executive’s
employment from the Company described in this paragraph 4.b(i), the
Company shall at its sole cost and expense (but disregarding any individual tax
liability of Executive), and at the election of COBRA by Executive, provide
Executive (and his spouse and eligible dependents) with group health benefits
substantially similar to those benefits that Executive (and his spouse and
eligible dependents) were receiving immediately before his termination (which
may at the Company’s election be pursuant to reimbursement of the applicable
COBRA premium).  Such coverage shall be
provided to Executive as COBRA benefits and shall terminate prior to the end of
the one-year period if Executive, his spouse or eligible dependents are no
longer eligible for COBRA coverage.  To
the extent possible, the benefits under this paragraph 4.b(i) shall
be made in a manner that is tax efficient for the Executive so long as there is
no adverse tax consequences to the Company. 
If Executive receives the benefits set forth in this
paragraph 4.b(i), Executive shall not be eligible for severance benefits
from any other plan, program, or policy of the Company then in effect.

 

(ii)                                  Death or Disability.  In the event of
termination of Executive’s employment due to death or Disability (under
paragraph 4.a(iv) hereof), Executive shall be entitled to receive (in
addition to any other payments 

 

6

 

specifically
contemplated in this Agreement) a pro rata portion of his Minimum Annual Bonus
for the portion of the calendar year before the date of termination of
employment, as promptly as practicable and in no event later than the date set
forth in paragraph 3.c hereof; but Executive shall not be eligible to
receive any severance benefit under this paragraph 4.b.  Executive’s eligibility (if any) to receive a
severance or retirement benefit under any other severance or retirement plan or
program maintained by the Company shall be determined by the terms of that plan
or program as in effect on his termination date.

 

(iii)                               Termination for Cause or Voluntary
Termination.   If the Company terminates Executive’s
employment for Cause (under paragraph 4.a(i) hereof), or if Executive
terminates his employment without Good Reason (under paragraph 4.a(vi) hereof),
Executive shall not be eligible to receive any severance benefit under this
paragraph 4.b.  Executive’s
eligibility (if any) to receive a severance or retirement benefit under any
other severance or retirement plan or program maintained by the Company shall
be determined by the terms of that plan or program as in effect on his
termination date.  The foregoing shall
not limit the remedies available to the Group, at law or in equity, for any
loss or other injury caused directly or indirectly by Executive.

 

(iv)                              Earned but Unpaid Bonus.  In addition to any
other amounts owed to Executive under this paragraph 4.b, if the Company
terminates the Executive’s employment for any reason other than Cause or if
Executive terminates employment after December 31 of any year, Executive
shall be entitled to receive any Bonus earned by Executive for the preceding
year but not yet paid as of the termination date as calculated in accordance
with paragraph 3.b and paid as set forth in paragraph 3.c hereof.

 

(v)                                 Release.  Executive shall forfeit his right to the
payments set forth in this paragraph 4 unless a general release of claims
covering all liability (other than Executive’s rights under this Agreement and
any indemnification arrangement of the Company with respect to Executive)
against the Group and any of their respective past or present directors,
officers, employees, shareholders, controlling persons, or agents of the Group
is executed and delivered to the Company (and is no longer subject to
revocation, if applicable) within 60 days of Executive’s termination of
employment.  This agreement will be
substantially in the form attached hereto as Exhibit A.

 

5.                                      Restrictive Covenants.

 

a.                                       Non-Competition.  During the Term of Employment, Executive shall not
directly or indirectly manage, operate, participate in, be employed by, perform
consulting services for, or otherwise be connected with any casino licensee or
casino applicant in or within a 250 mile radius of any casino owned, operated,
or managed by the Company or any subsidiary or affiliate thereof (a “Competitive
Enterprise”), nor shall Executive receive compensation from any other company 

 

7

 

or business during the Term of Employment unless
the arrangement giving rise to such compensation has been (i) disclosed to
and approved by the Board in advance or (ii) is otherwise permitted by the
terms of this Agreement.  Executive may
invest in any Competitive Enterprise, provided that Executive and his immediate
family members (as defined in Section 1361(c)(B) of the Internal
Revenue Code) do not own collectively more than three percent of the voting
securities of any such entity during the Term of Employment.

 

b.                                      Use and Disclosure of Proprietary
Information.

 

(i)                                     Definition of Proprietary Information.  “Proprietary
Information” means confidential or proprietary information, knowledge, or data
concerning (1) the Group’s businesses, strategies, operations, financial
affairs, organizational matters, personnel matters, budgets, business plans,
marketing plans, studies, policies, procedures, products, ideas, processes,
software systems, trade secrets, and technical know-how, (2) any other
matter relating to the Group, (3) any matter relating to clients of the
Group or other third parties having relationships with the Group and (4) any
confidential information from which the Group derives business advantage or
economic value.  Proprietary Information
includes (1) the names, addresses, phone numbers, buying habits and
preferences, and other information concerning clients and prospective clients
of the Group, and (2) information and materials concerning the personal
affairs of employees of the Group.  In
addition, Proprietary Information may include information furnished to
Executive orally or in writing (whatever the form or storage medium) or
gathered by inspection, in each case before or after the date of this
Agreement.  Proprietary Information does
not include information that was or becomes generally available to the public,
other than as a result of a disclosure by Executive, directly or indirectly.

 

(ii)                                  Acknowledgements.  Executive
acknowledges that he will obtain or create Proprietary Information in the
course of Executive’s involvement in the Group’s activities and may already
have Proprietary Information.  Executive
agrees that the Proprietary Information is the exclusive property of the
Group.  In addition, nothing in this
Agreement will operate to weaken or waive any rights the Group may have under
statutory or common law, or any other agreement, to the prohibition of unfair
competition or the protection of trade secrets, confidential business
information, and other confidential information.

 

(iii)                               During Employment.  Executive will use
and disclose Proprietary Information only for the Group’s benefit and in
accordance with any restrictions placed on its use or disclosure by the Group.

 

(iv)                              Post-Employment.  After the
termination of Executive’s employment, Executive will not use or disclose any
Proprietary Information for any purpose. 
For the avoidance of doubt, but without limitation of the foregoing,
after termination of Executive’s employment, Executive will 

 

8

 

not
directly or indirectly use Proprietary Information from which the Group derives
business advantage or economic benefit to solicit, impair, or interfere with,
or attempt to solicit, impair, or interfere with, any person or entity, who, at
the time of the termination of Executive’s employment, is then a customer,
vendor, or business relationship of the Group (or who Executive knew was a
potential customer, vendor, or business relationship of the Company within the
six months prior to the termination of his Employment).

 

c.                                       Non-Solicitation of Employees.  During the Term of
Employment and for a 12 month period after termination of Executive’s
employment, Executive will not directly or indirectly solicit or attempt to
solicit anyone who, at the time of the termination of Executive’s employment,
is then a Service Provider (as defined herein) or who was a Service Provider
within the six months prior to the termination of his Employment to resign from
service with the Group or to apply for or accept service with any company or
other enterprise.  For this purpose, a “Service
Provider” means an employee, consultant, independent contractor, or similar
representative of any member of the Group.

 

d.                                       Non-Disparagement.  During and after
Executive’s employment with the Company, the parties mutually covenant and
agree that neither will directly or indirectly disparage the other, or make or
solicit any comments, statements, or the like to any clients, competitors,
suppliers, employees, or former employees of the Company, the press, other
media, or others that may be considered derogatory or detrimental to the good
name or business reputation of the other party. 
Nothing herein shall be deemed to constrain either party’s cooperation
in any Board-authorized investigation or governmental action.

 

e.                                       Work Product.  Executive agrees that
any work, invention, innovation, idea, or report that Executive produces or
that results from or is suggested by the work Executive performs on behalf of
the Group is a “work for hire” and will be the sole property of the Company.
(Such work, invention, innovation, ideas, and reports are referred to herein as
the “Work”). Executive will promptly communicate to the Company, in writing
when requested, all Work that is conceived or developed by Executive, alone or
with others, at any time while Executive is employed by the Company. The foregoing
applies whether or not the Work was conceived or performed during business
hours or on or using the Company’s equipment. Both during and after termination
of Executive’s employment, Executive agrees to sign any documents that the
Company deems necessary or appropriate to confirm its ownership of the Work,
and Executive agrees to otherwise cooperate with the Company in order to allow
the Company to take full advantage of the Work as the Company may require. This
may include assisting the Company in obtaining patents, copyrights, or other
legal protection of the Work for the Company’ s benefit (although the Work will
be the exclusive property of the Company, whether or not patented or
copyrighted).

 

9

 

6.                                      Employment Taxes.

 

All payments and other
compensation under this Agreement shall be subject to withholding of the
applicable income and employment taxes.

 

7.                                      Payment of Professional Fees and Expenses

 

The Company shall promptly
pay all professional fees and expenses incurred by Executive in connection with
the negotiation and preparation of this Agreement and any related agreements,
including the fees and expenses of his counsel and other professionals.

 

8.                                      Nonduplication of Benefits.

 

No term or other provision
of this Agreement may be interpreted to require the Company to duplicate any
payment or other compensation that Executive is already entitled to receive
under a compensation or benefit plan, program, or other arrangement maintained
by the Company.

 

9.                                      Indemnification.

 

To the fullest extent
permitted by applicable law and its constituent documents (including its
limited liability company agreement), the Company shall provide indemnification
for Executive against any and all damages, costs, liabilities, losses, and
expenses (including reasonable attorneys’ fees) as a result of any claim or
proceeding (whether civil, criminal, administrative, or investigative), or any
threatened claim or proceeding (whether civil, criminal, administrative, or
investigative), against Executive that arises out of or relates to Executive’s
service as an officer, director, or employee, as the case may be, of the Group,
or Executive’s service in any such capacity or similar capacity with an
affiliate of the Company or other entity at the request of the Company
(excluding any action in which Executive’s interests are adverse to those of
the Company or any of its affiliates). 
Executive shall be covered by any director and officer’s liability
insurance policy maintained by the Company.

 

10.                               Successors.

 

Any successor to the Company
or to all or substantially all of the Company’s business and/or assets (whether
a direct or indirect successor, and whether by purchase, lease, merger,
consolidation, liquidation, or otherwise) shall assume the obligations under
this Agreement.  In case of any
succession, the term “Company” shall refer to the successor.  The terms of this Agreement and all of
Executive’s rights hereunder shall inure to the benefit of, and be enforceable
by, Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees, and legatees.

 

11.                               No Third-Party Beneficiaries.

 

Except as provided in
paragraph 10 hereof, nothing in this Agreement may confer upon any person
or entity not a party to this Agreement any rights or remedies of any nature or
kind whatsoever under or by reason of this Agreement.

 

12.                               No Duty to Mitigate.

 

Executive shall not be
required to seek new employment or otherwise to mitigate the payments contemplated
by this Agreement.  The payments
contemplated by this Agreement shall

 

10

 

not
be reduced by earnings that Executive may receive from any other source;
provided, however, that COBRA payments may cease in accordance with the
provisions of this Agreement.

 

13.                               Notice.

 

Notices and other
communications between the parties to this Agreement shall be delivered in
writing and shall be deemed to have been given when personally delivered or on
the third business day after mailing by U.S. registered or certified mail,
return receipt requested and postage prepaid.

 

a.                                       Notices and other communications to Executive shall be
addressed to Executive, at the most recent home address that he provided in
writing to the Company.

 

b.                                      Notices and other communications to the Company shall be
addressed to the Company’s corporate headquarters, to the attention of the
Company’s Secretary.

 

14.                               Waiver and Amendments.

 

No provision of this
Agreement may be modified, waived, or discharged, unless the modification,
waiver, or discharge is agreed to in writing signed by Executive and by an
authorized representative of the Company (other than Executive).  Unless specifically characterized as a
continuing waiver, no waiver of a condition or provision at anyone time may be
considered a waiver of the same provision or condition (or any different
provision or condition) at any other time.

 

15.                               Ability to Enter this Agreement.

 

Executive represents and
warrants that neither the execution and delivery of this Agreement nor the
performance of Executive’s services hereunder will conflict with or result in a
breach of any employment or other agreement to which Executive is a party or by
which Executive might be bound or affected. 
Executive further represents and warrants that Executive has full right,
power, and authority to enter into and carry out the provisions of this Agreement.

 

16.                               Gaming Approvals.

 

Executive hereby represents
that Executive presently holds, or, that Executive shall use Executive’s best
efforts promptly to apply for, obtain and hold, each qualification, license, or
suitability determination (each, an “Approval”) required by any gaming
commission, council, authority, or similar governing body (each such governing
body, a “Gaming Authority”) in connection with Executive’s employment as an
executive officer of the Company. 
Executive hereby agrees to use Executive’s best efforts to renew any
Approval should such renewal be required in order for Executive to discharge
the duties of an executive officer of the Company in accordance with applicable
law or any applicable gaming regulations.

 

17.                               Remedy at Law Inadequate.

 

Executive acknowledges that
a remedy at law for any breach or attempted breach of the covenants described
in paragraph 5 hereof will be inadequate and agrees that the Group shall
be entitled to specific performance and injunctive and other equitable relief
in the case of any such breach or attempted breach.

 

11

 

18.                               Section 409A Compliance.

 

a.                                       The intent of the parties is
that payments and benefits under this Agreement comply with Section 409A
and, accordingly, to the maximum extent permitted, this Agreement shall be
interpreted to be in compliance therewith. 
To the extent that any provision hereof is modified in order to comply
with Section 409A, such modification shall be made in good faith and
shall, to the maximum extent reasonably possible, maintain the original intent
and economic benefit to Executive and the Company of the applicable provision
without violating the provisions of Section 409A.  In no event whatsoever shall the Company be
liable for any additional tax, interest or penalty that may be imposed on
Executive by Section 409A or damages for failing to comply with Section 409A.

 

b.                                      A termination of employment
shall not be deemed to have occurred for purposes of any provision of this
Agreement providing for the payment of any amounts or benefits upon or
following a termination of employment unless such termination is also a “separation
from service” within the meaning of Section 409A and, for purposes of any
such provision of this Agreement, references to a “termination,” “termination
of employment” or like terms shall mean “separation from service.”  If Executive is deemed on the date of
termination to be a “specified employee” within the meaning of that term under Section 409A(a)(2)(B),
then with regard to any payment or the provision of any benefit that is
considered deferred compensation under Section 409A payable on account of
a “separation from service,” such payment or benefit shall be made or provided
at the date which is the earlier of (i) the expiration of the six
(6)-month period measured from the date of such “separation from service” of
Executive, and (ii) the date of Executive’s death.  Upon the expiration of such delay period, all
payments and benefits delayed pursuant to this paragraph (whether they would
have otherwise been payable in a single sum or in installments in the absence
of such delay) shall be paid or reimbursed to Executive in a lump sum, and any
remaining payments and benefits due under this Agreement shall be paid or
provided in accordance with the normal payment dates specified for them herein.

 

c.                                       Notwithstanding anything else
contained herein, to the extent that any payments or benefits are subject to a release agreement contemplated by paragraph 4.b(v) hereof
and such release is executed and delivered and no longer subject to revocation
as provided in said paragraph 4.b(v), then the following shall apply:

 

(i)                                     To the extent that any cash payment or continuing benefit
conditioned on the execution of the release is not “nonqualified deferred
compensation” for purposes of Code Section 409A, then such payment or
benefit shall commence upon the first scheduled payment date immediately
following the date that the release is executed, delivered and no longer subject
to revocation (the “Release Effective Date”). 
The first such cash payment shall
include payment of all amounts that otherwise would have been due prior to the
Release Effective Date under the terms of this Agreement 

 

12

 

applied
as though such payments commenced immediately upon Executive’s termination of
employment, and any payments made thereafter shall continue as provided
herein.  The delayed benefits shall in
any event expire at the time such benefits would have expired had such benefits
commenced immediately following Executive’s termination of employment.

 

(ii)                                  To the extent that any such cash payment or continuing
benefit conditioned on the execution of the release is “nonqualified deferred
compensation” for purposes of Section 409A, then such payments or benefits
shall be made or commence upon the sixtieth (60th) day following Executive’s
termination of employment.  The first
such cash payment shall include payment of all amounts that otherwise would
have been due prior thereto under the terms of this Agreement had such payments
commenced immediately upon Executive’s termination of employment, and any
payments made thereafter shall continue as provided herein.  The delayed benefits shall in any event
expire at the time such benefits would have expired had such benefits commenced
immediately following Executive’s termination of employment.

 

d.                                      For purposes of this Agreement, (i) all
expenses or other reimbursements under this Agreement shall be made on or prior
to the last day of the taxable year following the taxable year in which such
expenses were incurred by Executive, (ii) any right to reimbursement or in
kind benefits shall not be subject to liquidation or exchange for another
benefit, and (iii) no such reimbursement, expenses eligible for
reimbursement, or in-kind benefits provided in any taxable year shall in any
way affect the expenses eligible for reimbursement, or in-kind benefits to be
provided, in any other taxable year.

 

e.                                       For purposes of Section 409A,
Executive’s right to receive installment payments pursuant to this Agreement
shall be treated as a right to receive a series of separate and distinct
payments.  Whenever a payment under this
Agreement specifies a payment period with reference to a number of days, the
actual date of payment within the specified period shall be within the sole
discretion of the Company.

 

f.                                         Notwithstanding any other
provision of this Agreement to the contrary, in no event shall any payment
under this Agreement that constitutes “nonqualified deferred compensation” for
purposes of Section 409A be subject to offset, counterclaim or recoupment
by any other amount unless otherwise permitted by Section 409A.

 

19.                               Choice of Law.

 

This Agreement (including
its validity, interpretation, construction, and performance) shall be governed
by the laws of the State of New York, without regard to any concerning
conflicts or choice of law that might otherwise refer construction or
interpretation to the substantive law of another jurisdiction.  In the event of any dispute or controversy
arising out of or relating to this Agreement, the parties hereto mutually and
irrevocably consent, and waive any 

 

13

 

objection,
to the exclusive jurisdiction and venue of (a) before the Plan Effective
Date, the Bankruptcy Court for the District of Delaware, and (b) after the
Plan Effective Date, any federal or state court in the State of Nevada.  The Company shall promptly reimburse
Executive for reasonable legal fees or other expenses incurred in any dispute
regarding the interpretation or validity of this Agreement if Executive
substantially prevails on any material issue involved in such dispute.

 

20.                               Section Headings.

 

All headings in this Agreement
are inserted for convenience only. 
Headings do not constitute a part of the Agreement and may not affect
the meaning or interpretation of any term or other provision of this Agreement.

 

21.                               Severability and Reformation.

 

Each substantive provision of
this Agreement is a separate agreement, independently supported by good and
adequate consideration, and is severable from the other provisions of the
Agreement.  If a court of competent
jurisdiction determines that any term or provision of this Agreement is
unenforceable, then the other terms and provisions of this Agreement shall
remain in full force and effect, and the unenforceable terms or provisions
shall be equitably modified to the extent necessary to achieve the underlying
purpose in an enforceable way.

 

22.                               Whole Agreement.

 

This Agreement reflects the
entire understanding and agreement between the Company and Executive regarding
Executive’s employment.  This Agreement
supersedes all prior negotiations, discussions, correspondence, communications,
understandings, and agreements, whether oral or written, relating to Executive’s
employment with the Company for the Term of Employment.  The respective rights and obligations of the
parties to this Agreement shall survive the termination of Executive’s employment
to the extent necessary to give such rights and obligations their intended
effect.  Notwithstanding anything to the
contrary contained herein, this Agreement is entered into subject to, and is
qualified in its entirety by, the requirements of any applicable gaming law or
regulation or any determination reached by an applicable Gaming Authority.  This Agreement shall be of no force or effect
if it is determined to contravene any applicable gaming law or regulation, in
which event such Agreement shall be void ab
initio.

 

23.                               Bankruptcy Court Approval

 

The effectiveness of this
Agreement is conditioned on approval of the Bankruptcy Court for the District
of Delaware.

 

24.                               Survival.

 

The provisions of paragraphs
5, 9, 10, 11, 12, 13, 14, 17, 19, 21, 22 and 25 hereof, this paragraph 24,
and the Company’s obligation to make payments required by this Agreement shall
survive the termination of Executive’s employment and the termination or
expiration of this Agreement.

 

25.                               Counterparts.

 

This Agreement may be
executed in counterparts, each of which shall be deemed an original but all of
which together shall constitute a single instrument.

 

*                                      *                                      *

 

14

 

IN WITNESS WHEREOF, the
parties to this Agreement have executed this Agreement on January 22,
2009.

 

	
  TROPICANA
  ENTERTAINMENT HOLDINGS, LLC

  	
   

  	
  SCOTT
  C. BUTERA

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Richard Baldwin

  	
   

  	
  By:

  	
  /s/
  Scott C. Butera

  
	
  Name:

  	
  Richard
  Baldwin

  	
   

  	
  Name:

  	
   

  
	
  Title:

  	
  Chief
  Financial Officer

  	
   

  	
  Title:

  	
   

  

 

 

Exhibit A

 

Form of Release

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