Document:

Exhibit 4.5

 

PAYING
AGENT AGREEMENT

 

THIS PAYING AGENT AGREEMENT (the “Agreement”) is made as of the [  } day of 2006 between Wells Fargo Bank, National Association, a
national banking association maintaining its principal corporate trust office
at Sixth Street & Marquette Ave; N9303-120, Minneapolis, MN 55479 (the
“Paying Agent”), and Winmark Corporation,
a Minnesota corporation maintaining its principal place of business at
4200  Dahlberg Drive, Suite 100,
Minneapolis, Minnesota 55422-4837 (the “Issuer”).

 

WHEREAS, the Issuer has authorized and proposes to
issue up to $$50 million aggregate principal amount of its Unsecured
Subordinated Renewable Notes (the “Notes”) pursuant to an Indenture dated as
of        ,    2006  
(the “Indenture”), between the Issuer and Wells Fargo Bank, National
Association, as trustee (the “Trustee”);

 

WHEREAS, the Issuer desires to appoint the Paying
Agent as paying agent with respect to the Notes; and

 

WHEREAS, the Paying Agent agrees to act as such
paying agent in accordance with, and subject to the terms and provisions of,
this Agreement, the Indenture, the Notes and the Prospectus dated  [               ], as it may be
supplemented from time to time (as so supplemented, the “Prospectus”);

 

NOW, THEREFORE, in consideration of the mutual
promises hereinafter contained, the Paying Agent and the Issuer hereby covenant
and agree as follows:

 

 

ARTICLE I

APPOINTMENT

 

Section 1.1.                                The Issuer hereby appoints the Paying Agent
as its paying agent with respect to the Notes to perform the duties
hereinafter set forth.

 

Section 1.2.                                The Paying Agent hereby accepts such
appointment in accordance with, and subject to, the terms and provisions of
this Agreement, and subject to the terms and provisions of the
Indenture, the Notes and the Prospectus as such terms and provisions relate to
the Paying Agent, and agrees to perform the
duties hereinafter set forth and set forth in the Indenture, the Notes and the
Prospectus. The Issuer shall be entitled to receive interest or earnings on or
with respect to any amounts held or deposited with the Paying Agent overnight
or over a holiday or weekend, in which event the Paying Agent shall remit to
the Issuer any interest or earnings accrued or earned pursuant to the Issuer’s direction to
invest such amounts. Any interest or
earnings on or with respect to any amount held by or deposited with the Paying
Agent hereunder shall be remitted to the Issuer in accordance with the Issuer’s
written instructions. The Paying Agent shall be under no duty or obligation to
collateralize or pledge any security therefore, or to segregate such amounts
except as required by law.

 

 

ARTICLE II

DEPOSIT OF
FUNDS

 

Section 2.1.                                On the business day immediately prior to each
interest or principal payment date described in Article III, the Issuer
shall deposit, or cause to be deposited, with the Paying Agent immediately
available funds in an amount equal to the aggregate amount to be paid by the
Paying Agent on such payment date. In the event the amount deposited with
respect to a payment date is less than the sum of the aggregate amounts
specified in statements furnished to

 

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the
Paying Agent pursuant to this Article with respect to such payment date,
the Paying Agent shall immediately notify the Issuer, and shall effect no
payments with respect to such payment date until such discrepancy has been
resolved. Until paid as hereinafter provided, the Paying Agent shall hold such
amounts in trust for the benefit of the holders of the Notes, and the Issuer
shall deposit with the Paying Agent such additional funds as may be
required to pay additional interest to such holders in the event that their
interest or principal payments are so delayed as required under the Indenture.
The Paying Agent shall not pay any interest or earnings on or with respect to
amounts held or deposited hereunder to the Issuer, except as otherwise provided
in Section 1.2 hereof.

 

ARTICLE III

PAYMENTS

 

Section 3.1.                                Not later than five business days prior to
any date on which interest or principal on the Notes is due and payable, the
Issuer shall furnish, or cause to be furnished, to the Paying Agent a file
containing information necessary for the Paying Agent to effect such interest
or principal payments (each, a “Payment File”). Payment Files shall include
amounts payable (net of any tax withholding amounts), and complete bank account
information for each individual payment, and be delivered to the Paying Agent
by the Issuer, or agent thereof, in an electronic format satisfactory to the
Paying Agent.

 

Section 3.2.                                The Paying Agent shall effect payment of
interest on the Notes as such becomes due and payable on the respective
interest payment dates. Except as otherwise required pursuant to the terms of
the Notes, the Indenture or the Prospectus, such payment shall be accomplished
by the Paying Agent electronically transferring such amounts to an account
specified by the registered owner of the Note on the record date in a
designation in form and substance satisfactory to the Paying Agent (such
designation to be received by the Paying Agent from the Issuer or its
agent no later than the record date).

 

Section 3.3.                                The Paying Agent shall, at the
direction of the Issuer or its agent, effect
payment in full of principal on the Notes as of the respective maturity dates,
unless the term of the related Note is renewed or such Note becomes due and
payable on an earlier date by acceleration, redemption, repurchase or otherwise
pursuant to the terms of the Note, the Indenture or the Prospectus. If the
Notes are issued as definitive, certificated securities pursuant to the
Indenture, then the Paying Agent shall effect payment of the principal of the
Notes upon the presentation and surrender of the Notes at the principal
corporate trust office of the Paying Agent (a) at maturity, (b) upon
redemption or repurchase of the Notes or (c) as otherwise provided by the
Notes, the Indenture or the Prospectus. If the Notes are issued in book-entry form pursuant
to the Indenture, then the Paying Agent shall effect payment of the principal
of each Note upon a direction, instruction or confirmation from the Issuer or
registrar as the Issuer’s agent that the book-entry account evidencing such
Note is being terminated and cancelled as paid in full (a) at maturity, (b) upon
redemption or repurchase of the Notes or (c) as otherwise provided by the
Notes, the Indenture or the Prospectus.

 

Section 3.4.                                Notwithstanding any provision elsewhere
contained herein, payments by the Paying Agent shall be made only out of amounts
deposited with the Paying Agent by or on behalf of the Issuer with respect to
such payment.

 

Section 3.5.                                The Paying Agent will not charge, impose,
collect or receive, from the holder or owner of any Note, any fee or
consideration for any services performed in connection with any payment of
principal or interest to such holder or owner, and any charge for postage, for
wiring payment, or otherwise, shall be charged to and collected only from the
Issuer.

 

ARTICLE IV

ADDITIONAL
DUTIES OF PAYING AGENT

 

Section 4.1.                                The Paying Agent shall: (i) keep and
maintain such records in such form and manner consistent

 

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with
persons providing similar paying agent services; and (ii) perform such
related duties as may be necessary for the Paying Agent to perform. Such
records shall upon prior written request be available for inspection by
authorized officers, employees, and agents of the Issuer during the normal
business hours of the Paying Agent. Upon the termination of this Agreement,
and at the request and expense of the Issuer, the Paying Agent shall deliver to the Issuer copies of such records
reflecting all transactions as of such date, in the form and manner kept
by the Paying Agent.

 

Section 4.2.                                The Paying Agent shall, at the
direction of the Issuer or its agent,
file such federal and state tax returns concerning payments hereunder as shall
be required of it by applicable law, but shall not be responsible for the
collection or withholding of taxes due on such payments except, and only to the
extent, required of it as Paying Agent by applicable law or under the Notes,
the Indenture or the Prospectus. The Issuer shall provide, or cause to be
provided, to the Paying Agent, information necessary or required by the Paying
Agent to complete any applicable federal or state returns on behalf of the
Issuer, including, but not limited to, certified tax identification numbers for
each reportable payee.

 

Section 4.3.                                The Paying Agent shall have no duties or
responsibilities whatsoever except such duties and responsibilities as are
specifically set forth in this Agreement, the Notes, the Indenture or the
Prospectus, and no covenant or obligation shall be implied in this Agreement,
against the Paying Agent. Without limiting the generality of the foregoing, the
Paying Agent shall not be an office or agency of the Issuer where Notes may be
presented for re-registration or transfer, nor act as registrar or transfer
agent with respect to, or maintain record lists of holders of Notes.

 

Section 4.4.                                The Paying Agent shall incur no liability and
shall be fully protected in acting upon any written instruction of the Issuer.
The Issuer agrees to provide, or cause its agent to provide, written
instructions to the Paying Agent with respect to any and all actions to be
taken by the Paying Agent where failure to take such actions would adversely
affect the rights of or impose liability or penalties (including tax liability
or penalties) upon, the Issuer or the registered owners, past or present, of
the Notes, and in the absence of such instructions, the Paying Agent shall have
no duty to take any such action.

 

Section 4.5.                                The Paying Agent shall use its best efforts
to perform its obligations hereunder, including the timely taking of
action as required hereunder, provided, however, that the Paying Agent shall
not be liable for its failure to meet such deadlines, including, without
limitation, deadlines for the payment of money to owners of Notes, except such
failure as shall result from its negligence, willful misconduct or bad faith.

 

Section 4.6.                                With respect to any notices required to be
sent by the Paying Agent, the Paying Agent shall not be liable for its failure
to include required information in such notices unless such information has
been timely provided to it.

 

Section 4.7.                                The Paying Agent shall comply with Sections
2.4, 2.7, 4.1, 8.3, 10.10, 10.12 and any other relevant sections of the Indenture
(a copy of which will be provided to the Paying Agent, to the extent the
Trustee is not also appointed as the Paying Agent) as they pertain to the
Paying Agent.

 

Section 4.8.                                In connection with the submission of each
subscription agreement and other related subscription documents (collectively,
the “Subscription Agreement”) by an investor desiring to purchase Notes, the
Paying Agent shall perform the following: (i) accept physical
delivery by U.S. mail or courier service of such Subscription Agreement and the
accompanying investor form of payment, if any; (ii) photocopy the
first page of each Subscription Agreement and prepare a record or log (the
“Subscription Log”) of each Subscription Agreement received with the name of
the investor, the amount of the Notes to be purchased per the Subscription
Agreement and the amount of the accompanying investor payment, if any,
received; (iii) on the day of receipt, forward each original Subscription
Agreement and form of investor payment, if any, to the Issuer or the
designated selling agent of the Issuer; (iv) on each day on which one or
more Subscription Agreements are received, forward a copy of the Subscription
Log to the Issuer and its designated selling agent, if any; and (v) if the
Paying Agent receives any correspondence pertaining to the Notes, forward such
correspondence to the addressee thereof with a copy to the Issuer or its
designated selling agent, as the case may be. The

 

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Issuer
shall provide written notice to the Paying Agent of any person designated as
its selling agent or subsequently terminated as its selling agent. In the event
that the Paying Agent is terminated pursuant to this Agreement, at the request
of the Issuer, the Paying Agent shall use reasonable efforts to transfer and
cooperate with the transfer of its duties under this Section 4.9 to the
Issuer or a successor paying agent or other party as designated by the Issuer,
including the forwarding of any Subscription Agreements and investor payments
received.

 

ARTICLE V

CONCERNING
THE PAYING AGENT

 

Section 5.1.                                The Paying Agent shall not be liable for any
loss or damage, including reasonable counsel fees and expenses, resulting from
its actions or omissions to act hereunder, except for any loss or damage
arising out of its own bad faith, negligence or willful misconduct. Without
limiting the generality of the foregoing, the Paying Agent shall not be liable
for any action taken or omitted in reliance on any notice, direction, consent,
certificate, affidavit, statement, designation or other paper or document
reasonably believed by it to be genuine and to have been duly and properly
signed or presented to it by the Issuer.

 

Section 5.2.                                The Issuer shall indemnify and hold harmless
the Paying Agent from and against any and all claims, demands, expenses
(including reasonable counsel fees and out-of-pocket expenses) and liabilities
of any and every nature which the Paying Agent may sustain or incur or
which may be asserted against the Paying Agent as a result of any action
taken or omitted by the Paying Agent hereunder without bad faith, negligence or
willful misconduct. At any time, the Paying Agent may apply to the Issuer
for written instructions with respect to any matter arising under this
Agreement and shall be fully protected in acting in accordance with such
instructions. In addition, the Paying Agent may, as reasonably necessary,
consult counsel to the Issuer, and shall be fully protected with respect to any
action taken or omitted in good faith in accordance with such advice or opinion
of counsel to the Issuer.

 

Section 5.3.                                The Paying Agent may employ agents or
attorneys-in-fact, and shall not be liable for any loss or damage arising out
of, or in connection with, the actions or omissions to act of such agents or
attorneys-in-fact provided the Paying Agent acted without bad faith,
negligence, or willful misconduct in connection with the selection of such
agents or attorneys-in-fact.

 

Section 5.4.                                The Paying Agent makes no representations
with respect to the validity or sufficiency of the Notes, or the use or
application of the proceeds of the sale or distribution thereof, and shall
incur no liability with respect to the foregoing.

 

Section 5.5.                                Notwithstanding any other provision elsewhere
contained in this Agreement, the Paying Agent is acting solely as agent of the
Issuer and does not assume any obligation or relationship of agency or trust
for or with any owners or holders of Notes other than the limited obligations
with respect to amounts deposited for the payment of principal of and interest
on the Notes and the obligations set forth in Sections 4.7, and 4.8 hereof.

 

Section 5.6.                                The Issuer shall pay to the Paying Agent for
its performance hereunder: (a) such compensation as may mutually be
agreed upon in writing in a schedule to this Agreement or otherwise; and (b) its
out-of-pocket expenses (including reasonable counsel fees and expenses)
incurred in connection with this Agreement, including, without limitation,
those referred to in Section 3.4 hereof.

 

ARTICLE VI

GENERAL

 

Section 6.1.                                Either of the parties hereto may terminate
this Agreement by giving to the other a notice in writing specifying a
termination date which, unless otherwise waived by the other party, is at least
forty-five (45) days after the giving of such notice; provided, however, that
each party hereto may terminate this Agreement upon the breach or failure
of the other party to perform any obligations hereunder and such breach or
failure to perform shall continue for

 

4

 

ten
(10) days after written notice thereof or upon the entry of a decree or
order of involuntary bankruptcy, commencement of a voluntary case under
applicable bankruptcy laws, appointment of a trustee in bankruptcy or an
assignment for the benefit of creditors by either party thereto. Upon the date
specified in such notice, the Paying Agent shall, upon making the delivery
required by Section 4.1 hereof, be relieved of all duties and
responsibilities pursuant to this Agreement; provided that the provisions of
Sections 5.1, 5.2 and 5.6 hereof shall survive the termination of this
Agreement.

 

Section 6.2.                                Any notice, instruction, request for
instructions or other instrument in writing authorized or required by this
Agreement to given to either party shall be deemed given if addressed and
mailed certified mail to it at its offices at the address first above written,
or at such other place as such party may from time to time designate in
writing.

 

Section 6.3.                                As of the date hereof, the Issuer hereby
designates Sumner Harrington Ltd. as its designated selling agent for purposes
of this agreement. The Paying Agent may rely on information received from
Sumner Harrington, Ltd. in connection herewith as is if such information had
been delivered by the Issuer, including Payment Files, information provided in
connection with federal or state filings, and subscription information, if
applicable. Notices given to Sumner Harrington Ltd. pursuant to Section 6.2
shall be sent to its office address at 11100 Wayzata Boulevard. Suite 170,
Minneapolis, Minnesota 55305.

 

Section 6.4.                                This Agreement may not be amended or
modified in any manner except by a written agreement executed by both parties
and shall be acknowledged and agreed to by the designated selling agent, to the
extent the amendment or modification effects the duties of the selling agent.

 

Section 6.5.                                This Agreement shall extend to and be binding
upon the parties hereto and their respective successors and assigns.

 

Section 6.6.                                Nothing in this Agreement, express or
implied, shall give to any person, other than the parties hereto, the Trustee
(which is expressly made a third-party beneficiary hereto for purposes of Section 4.7
of this Agreement), and their successors hereunder, any benefit or any legal or
equitable right, remedy or claim under this Agreement.

 

Section 6.7.                                This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Minnesota, without
regard to conflicts of laws principles thereof.

 

Section 6.8.                                This Agreement may be signed in any
number of counterparts with the same effect as if the signatures to each
counterparts were upon a single instrument, and all such counterparts together
shall be deemed an original of this Agreement.

 

[Signature Page begins on next page]

 

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IN WITNESS WHEREOF, the parties hereto have caused
this Paying Agent Agreement to be executed by their respective corporate
officers, thereunto duly authorized, as of the day and year first above
written.

 

	
   

  	
  Winmark Corporation, as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as Paying Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
					

 

 

ACKNOWLEDGED
AND AGREED TO:

 

Sumner
Harrington Ltd.,

as
Issuer’s Agent pursuant to Section 6.3 hereof

 

 

	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:Exhibit 10.1

 

RIVER ROCK ENTERTAINMENT
AUTHORITY

 

EMPLOYMENT AGREEMENT

 

This
Employment Agreement (“Agreement”) is entered into as of the 13th day of April,
2006 (“Effective Date”) by and between the River Rock Entertainment Authority (“Authority”),
a governmental instrumentality of the Dry Creek Rancheria Band of Porno Indians
(“Tribe”), on behalf of its Tribal governmental gaming project, the River Rock
Casino (“Casino”), and Shawn Smyth (“Employee”).

 

The
parties hereto expressly intend that this Agreement describe Employee’s
relationship as an employee of the Authority and not as a contractor, including
but not limited to not being a contractor as that term is used in 25 USC § 2711
and 25 CFR § 502.15. The parties have reached the terms of this Agreement
and purposefully drafted the provisions of this Agreement consistent with, and
in furtherance of, this expressed intent.

 

1.                                      Employment. On and
subject to the terms and conditions of this Agreement, the Authority hereby
employs Employee, and Employee hereby accepts employment by the Authority, as
its Chief Executive Officer (CEO) and as General Manager of the Casino. Employee
shall report to, be accountable to and work under the authority of the
Authority’s Board of Directors (the “Board”).

 

2.                                      Reporting
and Duties. Employee shall report directly to the Board with
respect to all operations and expenditures of the Authority and Casino and
otherwise to the extent requested by the Board. Without limiting the foregoing,
Employee shall perform such executive duties as are commonly attendant
upon the office of a CEO and a casino general manager, and such further
executive duties as may be specified from time to time by the Board, such
as but not limited to:

 

(a)                                  Managing,
directing and supervising the operations of the Casino, including all of its
employees, and with the assistance of executive and management employees, and
including all of its departments (such as but not limited to its gaming,
regulatory compliance, food and beverage, transportation, parking, public
relations, accounting, marketing, purchasing, and other departments);

 

(b)                                 Enforcing the
River Rock Casino mission statement;

 

(c)                                  Providing
leadership to all personnel of the Casino;

 

(d)                                 In
collaboration with Human Resources Department, overall responsibility for the
selection, hiring, assignment, re-assignment, disciplining and termination of
all Casino and Authority employees (“Employees”), the implementation of
personnel, wage and benefit policies approved by the Board for the Employees,
and the implementation and enforcement of the Tribe’s TERO ordinance;

 

(e)                                  Developing
short and long term goals and objectives for the Authority and Casino;

 

 

(f)                                    Preparing
annual operating budgets and, subject to the approval of the Board,
implementing such budgets;

 

(g)                                 Overseeing all
marketing, promotional, advertising and public relations campaigns for the
Authority and Casino;

 

(h)                                 Supervising and
causing the preparation and presentation to the Board of periodic economic,
financial, business, marketing, regulatory and other reports to the Board;

 

(i)                                     Assuring
compliance by the Authority and the Casino with all applicable laws, including
but not limited to compliance with federal securities law, Treasury Department
tax reporting and withholding (including payroll and gambling tax), federal
anti-money laundering statutes and regulations, Sarbannes – Oxley laws, Indian
Gaming Regulatory statutes and regulations, the Johnson Act, the Tribal-State
compact with California, the Tribal Gaming Ordinance, and all other applicable
federal, state and tribal laws;

 

(j)                                     Responsibility
for the overall ambience, maintenance and cleanliness of the Casino;

 

(k)                                  Optimizing
Casino operational efficiency through, among other things, increasing cost
effectiveness and ensuring that quality assurance programs are adopted and
implemented;

 

(1)                                  Developing and
implementing programs for hiring, training and advancing Tribal members for
supervisory and management positions in accordance with the preference policies
of the Tribe and the Casino;

 

(n)                                 Preparing,
implementing and directing programs that assure that the Casino meets all
federal, Tribal, Tribal Gaming Authority (“TGA”) and Compact requirements for
internal controls, including establishment and enforcement of policies designed
to maintain the integrity of the Casino and any other Tribal or Authority
gaming operations to which Employee is assigned, for the protection of the
Tribe, the Authority, the Board, the Casino, its customers and the public in
accordance with law and standards in the industry; and

 

(p)                                 Attending all
meetings and trainings as required by the Board.

 

3.                                      Term. The term of
this Agreement (“Term”) shall commence on the Effective Date and shall end two (2) years
after the Effective Date, unless terminated earlier by the parties as provided
herein.

 

4.                                      Full-Time
Service. Employee agrees that during the Term of this
Agreement unless earlier terminated, he will commit his full time and energies
to the duties imposed hereby and, further, agrees that during the term of this
Agreement he will not (whether as an officer, director, member, employee,
partner, proprietor, investor, security holder, lender, associate, consultant,
adviser or otherwise) directly or indirectly, engage in the business of the
Casino as a

 

 

competitor or otherwise without the express prior written consent of
the Board in its sole discretion.

 

5.                                       Compensation.

 

(a)                                  Employee will be paid a
salary of Two Hundred Fifty Thousand Dollars ($250,000.00) per annum (“Compensation”),
subject to applicable withholding taxes and required deductions.

 

(b)                                 Payments in discharge of the
Compensation shall be made in 1/26 annual payments thereof every other workweek
on the day established for payroll payments to other employees of the Casino.

 

(c)                                  Employee shall be eligible
for an annual bonus of not more than twenty-five percent (25%), as determined
by the Board in its sole discretion, based on the Compensation earned for the
year in question, payable within 45 days after the Anniversary Date.

 

(d)                                 Employee will be entitled,
on the same basis as other executive employees of the Casino, to participate in
and receive benefits under the Casino’s benefit plans for executives, if any,
as such plans may be modified from time to time, except that Employee will
be entitled to seven (7) days of additional Personal Time Off (PTO) in
excess of the Casino’s normal PTO policy.

 

(e)                                  The Employee shall be
reimbursed all reasonable and necessary business expenses incurred on behalf of
his employment during the performance of his duties under this Agreement,
subject to the existing reimbursement policy established by the Casino. Such
reimbursements shall be supported by adequate record-keeping and other
requirements as may be necessary or appropriate to comply with the
Internal Revenue Code.

 

(f)                                    Employee will have the right
to be reimbursed for any legal fees incurred as the result of defending himself
in any third party lawsuit arising out of Employee’s authorized services under
this Agreement; provided that all such defenses shall be managed and controlled
by the Authority and with counsel reasonably approved by Authority. Employee is
and will continue to be covered under the Authority’s errors and omissions
insurance as such insurance covers all members of the Board.

 

6.                                      Licensing
Issues. Employee warrants and represents that he is
eligible and suitable for a background clearance and license as being suitable
for holding a key employee or manager’s position in a gaming establishment
under Tribal, State and federal law. Employee agrees to timely apply for any
license(s) and background investigations as may be required under
applicable law and as may be necessary to enable him to engage in his employment
hereunder. The Authority or the Casino shall pay all costs associated with such
Licensing and backgrounding. Employee will maintain all gaming licenses and suitability
determinations in good standing as a continuing condition of his employment
under this Agreement, and shall notify the Tribal Gaming Commission (“TGA”) of
any information that is material to, or a change from, any information sought
or contained in his Tribal gaming license application or his

 

 

suitability in general for a gaming license, and shall do so as soon as
possible after such information is known to Employee.

 

7.                                      Termination.

 

(a)                                  Employee may be
terminated prior to the end of the Term by the Authority under the following
circumstances:

 

(i)                                     Upon
termination, revocation or disapproval of any license or suitability
determination required by law to be obtained by Employee in order to perform lawfully
as an employee of any Tribal gaming activity, or if any event renders it
unlawful for the Tribe or the Authority to continue to operate the Casino; or

 

(ii)                                  Employee shall
commit an act constituting “Cause,” Cause being defined as (a) an act of
intentional dishonesty against the Tribe, the Authority or the Casino; (b) conviction
of any criminal charge involving moral turpitude; (c) the deliberate or
intentional refusal by Employee (except by reason of disability) to perform his
duties hereunder; (d) gross negligence in the performance of his duties
hereunder; or, (e) failure to perform his duties in a manner
consistent with his professional obligations after prior sufficient verbal and
written warnings;

 

(iii)                               Employee shall
die;

 

(iv)                              The Authority
shall for any reason cease to operate the Casino;

 

(v)                                 Employee shall
become unable to perform the duties and responsibilities set forth in this
Agreement by reason of long-term physical or mental disability, defined as a
period of disability that exceeds three (3) months; or

 

(vi)                              Either party
shall give the other party hereto ninety (90) days’ written notice of Employee’s
resignation or termination.

 

(b)                                 If Employee’s employment
should be terminated under paragraphs 7 (a)(i), (a)(ii) or (a)(vi) above
(provided that this subparagraph (b) shall only apply to paragraph 7(a)(vi) to
the extent that Employee has resigned), then Authority shall within ten (10) days
of such termination pay Employee the accrued Compensation to the date Employee is
terminated, whereupon Authority shall have no further liability or obligation
to Employee under this Agreement.

 

(c)                                  If Employee is terminated
under paragraphs 7 (a)(iii), (a)(iv), (a)(v) or (a)(vi) (provided
that this subparagraph (c) shall only apply to paragraph 7 (a)(vi) to
the extent that Authority has terminated Employee), the Authority shall pay to
the Employee on a pro-rata basis the Compensation for a period of three (3) months
from the date of termination and he shall be eligible for all employee benefits
during that three-month period, pro-rated to period. Employee shall be paid all
amounts due him at the time of termination when they would otherwise be paid,
including the pro rata share of the bonus for the year in which the termination
occurred.

 

 

(d)                                 Upon the payment of all or
any part of the compensation provided for in this paragraph 7, or its
mitigation under this paragraph, the Authority will have no further liability
or obligation to Employee under this Agreement or arising from the employment
relationship except that obligation provided for in this paragraph 7.

 

(e)                                  Employee will be liable in
damages for all losses incurred by Authority if he is terminated for cause or
if Employee terminates his employment for any reason not authorized herein,
with the exception of termination by written notice agreed to by both parties. Any
such termination of or by Employee will constitute a waiver by Employee of all
claims against the Authority and the Casino except for the accrued Compensation
to the date of his termination as provided for in this Section 7, and
subject to any amounts due from Employee.

 

8.                                      Confidentiality
of Proprietary Information. Any information acquired
by Employee while employed under this Agreement in any way connected with the
Tribe, its officers and members, the Authority, its officers, the TGA, or the
Casino or any other Tribal or Authority gaming operation, related to employee
lists, patron lists, marketing plans, operating procedures, surveillance and
security equipment, policies, procedures or personnel, Tribal deliberations,
plans or decisions (by any Tribal body) and other information proprietary to
the Tribe, the Authority, the TGA, or the Casino, and such information is
hereby acknowledged by Employee to be confidential information belonging to one
or more of such entities, and Employee shall not disclose such information
without the express written authorization of the Board except in the ordinary course
of the business of the Casino. Employee shall, upon termination of this
Agreement for reason whatsoever, turn over to the Board any and all copies he may have
of employee lists, patron lists, marketing programs, operating procedures and
other information proprietary to the Tribe, the Authority, the TGA or the Casino. Employee
acknowledges that employee lists, patron lists, marketing programs, operating
procedures and other information proprietary to the Tribe, the Authority or the
Casino are confidential and proprietary information of one or more of such
entities and the Tribe, the Authority, the TGA, or the Casino, or any of them, may exercise
any and all remedies available at law or in equity to enforce this Agreement
with respect to non-disclosure of any such proprietary information. Particularly,
the parties agree that, because of the nature of the subject matter of this
paragraph 8, in event of a threat or danger of disclosure of such information,
it could be extremely difficult to determine the actual damages suffered or to
be suffered by breach of this Section 8 or to fully repair the harm done
by such action. Accordingly, Authority shall be entitled to injunctive relief
(both temporary and permanent), it being acknowledged and agreed that any such
actual or threatened breach will cause irreparable injury and that money
damages alone will not provide an adequate remedy. Notwithstanding the
foregoing, Tribe, Authority and Casino or any of them as may be
appropriate shall be entitled to money damages for any loss suffered or to be
suffered as a consequence of Employee’s breach of this Agreement. The parties
acknowledge that this provision shall survive the termination of this Agreement.
Notwithstanding anything herein to the contrary, Employee acknowledges and
agrees that information regarding the internal operations, actions, plans,
statements (other than public statements), public information, or activities of
the Tribe, the Authority, the TGA, the Casino, the Board, the Tribal Board of
Directors, or the Tribal Council, or any of their officers, employees, members
or representatives, are included within the meaning of confidential or proprietary
information herein and shall be protected as such.

 

 

9.                                      Assignment. This
Agreement may be assigned by the Authority, on behalf of itself or the
Casino, to any entity formed by the Tribe or the Authority for the express
purpose of operating a casino and any related economic development activities. This
Agreement contemplates the personal services of Employee and neither this
Agreement nor any of the rights herein granted to Employee or the duties
assumed by him hereunder may be assigned by him.

 

10.                               Miscellaneous.

 

(a)                                  Employee warrants and
represents that there are no restrictions to which he is subject or agreements
to which he is a party that would be violated by his execution of this
Agreement and his employment hereunder.

 

(b)                                 Employee warrants and
represents that he is familiar with the licensing and suitability standards
generally in the gaming industry in the United States and specifically win
respect to the Tribe, the Authority, the TGA, the Casino and the State of
California, and is unaware of any information that is likely to cause doubt
about his suitability for a gaming license or cause him to be rejected as a
candidate for a gaming license or a positive suitability determination.

 

(c)                                  This Agreement and all
questions relating to its validity, interpretation, performance and enforcement
shall be governed by and construed in accordance with the laws of the Dry Creek
Rancheria and the State of California.

 

(d)                                 No amendment to this
Agreement or any attempted waiver of a provision of this Agreement shall be
effective unless in writing and signed by the parties to this Agreement.

 

(e)                                  Any controversy that arises
out of this Agreement shall be determined in accordance with the laws of the
Tribe and the State of California. In no event shall any liability of the
Tribe, the Authority, TGA or the Casino or any of them, exceed an amount equal
in total to three (3) months of the Compensation for a one year period.

 

The Parties have executed this Agreement on April 17,
2006, as of the Effective Date hereof.

 

RIVER ROCK ENTERTAINMENT AUTHORITY, a government Instrumentality of the
DRY CREEK RANCHERIA BAND OF POMO INDIANS, a federally recognized Indian tribe,
on behalf of its governmental economic development project, the RIVER ROCK
CASINO,

 

	
  By:

  	
  /s/ Harvey
  Hopkins

  	
   

  
	
   

  	
  HARVEY HOPKINS, Its Chairman

  
	
   

  
	
  EMPLOYEE

  
	
   

  
	
  /s/ Shawn
  Smyth

  	
   

  
	
  SHAWN SMYTH

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