Document:

Prepared by MERRILL CORPORATION

Exhibit

10.23

 

 

Promissory Note

 

$364,999.50

                                                                                                                                Chester,

West Virginia

                                                                                                                                September

19, 2001

 

 

                On or before the 19th day of September,

2004, the undersigned promises to pay to the order of MTR Gaming Group, Inc.

the sum of $364,999.50 together with interest at 6.0%, the prime rate in effect

on the date hereof.

                The maker, endorsers, sureties, guarantors and

assignors of this note severally waive demand, presentment of payment, protest

and notice of protest, and nonpayment, and agree and consent that the time for

its payment may be extended, or said note renewed from time to time and for any

term or terms by agreement between the holder and any of them without notice,

and that after such extension or extensions, renewal or renewals, the liabilities

of all parties shall remain as if no extension or renewal has been had.  If this note is not paid when due, and is

given to an attorney for collection, or suit filed thereon, the maker agrees to

pay in addition to the unpaid principal and interest, the costs of collection

and reasonable attorney’s fees.

 

	

   

  	

   /s/  Robert L. Ruben

  	

   

  
	

   

  	

  Robert L. Ruben

  

 

 

STOCK PLEDGE AGREEMENT

 

 

                This Stock Pledge Agreement made

this 19th of September, 2001 by and between MTR Gaming Group, Inc.,

a Delaware corporation (the “Company”), and Robert L. Ruben

("Pledgor"), an individual.

 

W I T N E S S E T H:

 

                WHEREAS, on September 19, 2001

Pledgor exercised options to purchase 50,000 common shares of the Company (the

“Shares”) for $7.30 per share, which options were granted Pledgor on May 1,

2001 subject to the Company’s 2001 Stock Incentive Plan (the “Plan”); and

 

                WHEREAS, in return for the

Shares, Pledgor delivered to the Company the sum of $0.50 cash and a Promissory

Note (the "Note") pursuant to which Pledgor agreed to pay the Company

the original principal amount of $364,999.50 plus

interest, with payment due in full by the close of business on September 19,

2004; and

 

                WHEREAS, as security for the

Note, Pledgor has agreed to pledge the Shares pursuant to the terms and

conditions set forth below.

 

                NOW, THEREFORE, the parties

agree as follows:

 

                1.             The term "Pledged Stock" as used herein shall

mean and include all of the Shares.

 

                2.             (a)           As

collateral security for the due payment of all indebtedness of the Pledgor to

the Company under the Note, the Pledgor hereby pledges, assigns, hypothecates,

delivers, and sets over to the Company all the Pledged Stock, and hereby grants

to the Company a security interest in all the Pledged Stock and in any and all

proceeds thereof and substitutions therefor.

 

                                (b)           Pledgor shall herewith deliver to the

Company any and all stock certificates with respect to the Pledged Stock.

 

                3.             In the event of default by Pledgor under the Note, the

Company, without demand of performance or other demand or notice of any kind to

Pledgor, shall have all rights with respect to the Shares afforded to a secured

party under the Uniform Commercial Code. 

Pledgor acknowledges that the Note remains a full recourse obligation of

Pledgor.

 

                4.             Pledgor warrants and represents to the Company that upon

delivery of the Pledged Stock to the Company, this Stock Pledge Agreement

creates and grants a valid lien on and perfected security interest in the

Pledged Stock, subject to no prior security interest, lien, or encumbrance of any

kind.

 

                5.             The Pledgor shall at any time and from time to time upon

the written request of the Company execute and deliver such further documents

and perform such further acts as the Company may reasonably require to give

effect to the purposes of this Stock Pledge Agreement.

 

                IN WITNESS WHEREOF, the parties

have caused these presents to be duly executed and delivered the day and year

first above written.

 

	

   

  	

  MTR GAMING GROUP, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   /s/ 

  Edson R. Arneault

  
	

   

  	

  By:

  	

  Edson

  R. Arneault

  
	

   

  	

  Its:

  	

  President

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  PLEDGOR

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   /s/ 

  Robert L. Ruben

  	

   

  
	

   

  	

  By:  Robert L. RubenPrepared by MERRILL CORPORATION

Exhibit 10.24

EMPLOYMENT

AGREEMENT

 

                AGREEMENT

made this     28th    day of September, 2001, by and between MTR Gaming Group, Inc., a

Delaware corporation having its principal office at State Route 2 South,

Chester, West Virginia 26034, together with all of its subsidiaries whether now

existing or hereafter formed or acquired (collectively, the “Company”), and

Edson R. Arneault, One Riverside Drive, New Cumberland, WV (“Executive”).

                WHEREAS, the Executive has been employed by

the Company in the capacity of President pursuant to an Employment Agreement

between the Company and the Executive dated February 1, 1999 as amended by

Amendment entered April 26, 2000 (the “Amended 1999 Agreement”); and

                WHEREAS,

the Executive has assumed significant additional responsibilities due to the

expansion of the Company’s facilities in West Virginia, the expansion of the

Company’s operation to two additional locations in Nevada, and the Company’s

pursuit of other gaming and entertainment opportunities; and

                WHEREAS,

the Company continues to explore additional expansion opportunities both to its

existing facilities and through new venues; and

                WHEREAS,

under the guidance and direction of the Executive, the Company has improved its

performance and profitability; and

                WHEREAS,

the parties wish to replace the Amended 1999 Agreement by entering into an

agreement reflecting the present status of the Executive's employment

relationship to the Company as well as to link the Executive’s long-term

incentive cash compensation more directly to a number of objective performance

criteria;

                Now, Therefore, the parties, in reliance upon the mutual

promises and covenants herein contained, do hereby agree as follows:

                1.             Termination of Amended 1999

Agreement.  Upon execution and

delivery of this Agreement, the Amended 1999 Agreement as well as any other

prior written or oral agreements with respect to employment shall terminate and

be replaced by this Agreement, upon which event neither party to the Amended

1999 Agreement or any other prior written or oral agreements with resect to

employment shall have any further rights or obligations thereunder, except for

obligations that have accrued but not been paid as of the date hereof;

provided, however, that this Agreement shall not affect the separate Deferred

Compensation Agreement entered by the Company and Executive in January of 1999.

                2.             Term.  The Company hereby agrees to employ

Executive, and Executive agrees to serve the Company, in the capacity of

President, Chief Executive Officer and Chairman of the Company for a five year

period commencing on January 1, 2001 (the “Employment Date”) and ending on

December 31, 2006 (such period, subject to earlier termination as provided

herein, being referred to as the “Period of Employment”).

                3.             Duties

and Services.  During the Period of

Employment, Executive agrees to serve the Company as President, Chief Executive

Officer, and Chairman, as well as President, Chief Executive Officer, and

Chairman of Mountaineer Park, Inc., Speakeasy Gaming of Las Vegas, Inc.,

Speakeasy Gaming of Reno, Inc. and in such other offices and directorships of

the Company and of its subsidiaries and related companies (collectively,

“Affiliates”) to which he may be elected or appointed, and to perform such

other reasonable and appropriate duties as may be requested of him by the board

of directors of the Company (the “Board of Directors”), in accordance with the

terms herein set forth.  In performance

of his duties, Executive shall be subject to the direction of the Board of

Directors.  Excluding periods of

vacation and sick leave to which Executive is entitled, Executive shall devote

his full time, energy and skill during regular business hours to the business

and affairs of the Company and its affiliates and to the promotion of their

interests.

                
                4.             Compensation.

(a)           Base

Salary.  The base salary of the

Executive for his services pursuant to the terms of this Agreement shall be

$750,000 per year, effective January 1, 2001, and shall be payable in equal

bi-monthly installments, or on such other terms as may mutually be agreed upon

by the Company and Executive. 

Executive's base salary shall be subject to an automatic cost-of-living

increase of five percent (5%) on each anniversary of this Agreement.

(b)           Annual Bonus. 

Executive shall be entitled to (i) semi-annual cash bonuses of $50,000;

and (ii) an annual cash bonus in an amount equal to the factor, if any, by

which EBITDA (determined on the basis of independently audited financial

statements) for the calendar year then completed exceeded EBITDA for calendar

year 2000 (i.e., $32.1 million) multiplied by $250,000.  By way of example, if EBITDA for 2001 were

$40 million, then the bonus earned in 2001 and payable in 2002 upon completion

of the Company’s audit would be $311,500, which is calculated as follows:

$40,000,000 -

$32,100,000 = $7,900,000;

$7,900,000 ÷

$32,100,000 = 0.246;

$250,000 X 1.246 =

$311,500.

Each Annual Bonus shall be payable to Executive within

ten (10) days after the conclusion of the Company’s audit for the calendar year

then completed.

(c)           Long-Term Performance Bonus.  At the termination of the Period of

Employment, unless Executive’s employment shall have been terminated for Cause

(as defined in Section 5(d) hereof), in addition to any other compensation or

benefit payable or due hereunder, Executive shall be entitled to a cash payment

calculated as follows:

(i)            for each calendar year commencing

with 2001, calculate the factor, if any, by which each of the following

measures exceeded such measure for calendar year 2000 (referred to herein as

the “Base Year”):

(A)    EBITDA ($32.1 million for the Base Year);

(B)    Earnings per share ($0.59 for the Base

Year);

(C)    Stock Price (calculated by taking the

average of the last trade price for the last day of each calendar quarter as

reported on the Nasdaq Stock Market) ($5.24 for the Base Year”); and

(D)    Gross revenue ($170.6 million for the Base

Year).

(ii)           Calculate the average of all such

factors by adding them and dividing the sum by the total number of factors (20

factors assuming the Agreement is not terminated early) to determine the

“Factor Average”.

(iii)          Add 1.0 to the Factor Average for each

of the following to determine the “Adjusted Factor Average”:

(A)    Acquisition of a racetrack in a state

bordering any state in which the Company currently operates a gaming

enterprise;

(B)    Acquisition of a gaming venue; provided,

however, that such gaming venue generates positive EBITDA in the first full

year of operations; and

(C)    The passage of a law or regulation as to

which the Executive has devoted substantial effort that, in the judgment of the

compensation committee, substantially improves the gaming product at a Company

owned facility.

(iv)          Multiply the Adjusted Factor Average

by the Executive’s base pay for the final calendar year of the Period of

Employment.

The Long-Term Performance Bonus determined pursuant to

this Section 4(c)(i)-(iv) shall be payable to Executive within ten (10) days

after the conclusion of the Company’s audit for the last calendar year of the

Period of Employment; provided, however, that the Company may withhold from

such payment an amount sufficient to satisfy any promissory notes then

outstanding made by the Executive in favor of the Company.  Further, the Long-Term Performance Bonus

shall be capped at $9 million.

(d)           Survival

of Long-Term Performance Bonus.  The

provisions of Section 4(c) shall survive the early termination of this

Agreement, unless the Agreement is terminated for Cause (in which case no

Long-Term Performance Bonus will be due) or Executive voluntarily relinquishes

his duties hereunder (in which case the Long-Term Performance Bonus would be

calculated as of the end of the last calendar year of the Period of Employment.

(e)           Deferral of Non-Deductible Amounts.  Notwithstanding any provision to the

contrary contained herein, to the extent Executive’s total compensation for any

calendar year would otherwise exceed the amount the Company is permitted to

deduct as compensation expense for federal income tax purposes (the “Section

162 Maximum”) pursuant to Section 162 of the Internal Revenue Code of 1986, as

amended (the “Code”), Executive hereby elects to defer the time for payment of

any amounts above the Section 162 Maximum in a manner that will not result in

compensation exceeding the Section 162 Maximum.  In no event, however, shall such an election result in or be

construed as a waiver of the right to such compensation.  Executive’s right to receive such deferred compensation

(and, correspondingly, the Company’s deferred payment obligation) shall be

fully vested and shall be credited with investment earnings or losses.  The rate of investment earnings or losses on

such deferred compensation shall be equal to the rate of investment earnings or

losses of one or more stocks or mutual funds selected by the Company after

consultation with Executive and identified to Executive as such, which stocks

or mutual funds may be changed from time to time by the Company after

consultation with Executive.  While the

Company shall make reasonable efforts to act prudently in the selection of such

stocks or mutual funds, taking into account Executive’s investment preferences,

the Company shall not be responsible for the investment performance of any such

stock(s) and/or fund(s).

(f)            Deferred Compensation Trust.  In order to facilitate the payment of the

Company's deferred payment obligation, at the time that the Company would

otherwise make a payment to Executive but for the Section 162 Maximum, the

Company shall deposit an amount of cash equal to the amount which is being

deferred into a "rabbi trust" to be known as the Deferred

Compensation Trust (the "Trust") to be established by the Company

with an independent corporate trustee acceptable to the Company and Executive.

The Trust shall be in substantially the form attached hereto as Exhibit A.  Amounts deferred pursuant to Section 4(e)

and this Section 4(f), and the earnings thereon, shall be paid to the Executive

at the earliest time possible without being nondeductible by the Company under

Section 162 of the Code.  It is

understood and agreed by the parties that (i) the Trust shall remain subject to

the claims of the Company's general creditors; (ii) any income tax payable with

respect to the Trust shall be the sole obligation and responsibility of the

Company (and shall not reduce the assets in the Trust so long as the Trust

remains a "grantor trust" for federal income tax purposes); and (iii)

the establishment of the Trust shall not relieve the Company of its liability

to pay amounts due under this Agreement except to the extent that payments are

made by the Trust to the Executive or his estate in accordance with the terms

of this Agreement and the Trust.

(g)           Health Insurance. 

Executive shall be entitled at his election but at the Company's

expense, either to participate in and receive benefits under policies of health

insurance maintained by the Company for its employees or reimbursement for

premiums paid by the Executive for comparable health insurance.

(h)           Benefit Plans and Fringe Benefits.  Executive shall receive such employment

fringe benefits and shall be entitled to participate in other employee benefit

plans, including without limitation any pension plan, profit-sharing plan,

savings plan, deferred compensation plan, stock option plan, life insurance made

available by the Company now or in the future to its executives as the

Compensation Committee of the Board of Directors may periodically award in its

discretion based on the Executive's performance, subject to and on a basis

consistent with the terms, conditions and overall administration of such

Benefit Plans.

(i)            Expenses. 

All travel and other expenses incident to the rendering of services by

Executive hereunder shall be paid by the Company.  If any such expenses are paid in the first instance by Executive,

the Company shall reimburse him therefor on presentation of the appropriate

documentation required by the Internal Revenue Code or Treasury Regulations

promulgated thereunder, or otherwise required under the Company's policy with

respect to such expenses.

(j)            Living/Office

Quarters.  Executive shall be

entitled, at the Company’s expense, to lease living and/or office quarters for

himself and the Company in any state or jurisdiction in which the Company is

currently doing business or commences substantial business operations.  The expense incurred for living and/or

office quarters shall be reasonable and shall be paid directly by the Company,

or at Executive’s election, reimbursed by the Company.  Executive acknowledges that the Company may

elect, in its sole discretion, to purchase such living or office quarters.

(k)           Vacation. 

Executive shall be entitled to six (6) weeks paid vacation to be taken

at time or times mutually satisfactory to Executive and the Company.  Accrued vacation time not utilized by Executive

due to business commitments may be carried over to the following year

(provided, however, that Executive shall not in any event utilize more than six

weeks of vacation in any twelve month period) or paid to Executive at the end

of the year as additional compensation at Executive's election.

(l)            Working Facilities.  The Company shall provide Executive with an office, secretarial,

administrative and other assistance, and such other facilities and services as

shall be suitable to his position and appropriate for the performance of his

duties.  All such Working Facilities

shall be provided at the Company's corporate headquarters as well as on an as

needed basis in any other jurisdiction in which the Company is conducting or

pursuing substantial business. 

                5.             Early

Termination.

(a)           Notwithstanding the provisions of

Section 2 hereof, Executive may be discharged by the Company for Cause (as

defined in Section 5(d) hereof), in which event the Period of Employment

hereunder shall cease and terminate and the Company shall have no further

obligations or duties under this Agreement, except for obligations accrued

under Section 4 at the date of termination. 

In addition, the Period of Employment shall cease and terminate upon the

earliest to occur of the following events: 

(i) the death of Executive or (ii) at the election of the Board of

Directors (subject to the Americans With Disabilities Act), the inability of

Executive by reason of physical or mental disability to continue the proper

performance of his duties hereunder for a period of 180 consecutive days.  Upon termination of the Period of Employment

pursuant to the preceding sentence, the Company shall continue to pay to

Executive or his estate, as the case may be, the entire compensation otherwise

payable to him under Section 4(a) hereof for two years.

(b)           In the event Executive is discharged

by the Company other than for Cause (as defined in Section 5(d) hereof) or

other than pursuant to Section 5(a) hereof by reason of physical or mental

disability, Executive shall have no further obligations or duties under this

Agreement; provided, however, that Executive shall continue to be bound by the

provisions of Section 6 hereof if the Company performs its obligations under

this Section 5(b).  In the event of termination

of the Period of Employment pursuant to the preceding sentence, the Company

shall continue to pay Executive the entire compensation otherwise payable to

him under the provisions of Section 4 hereof for the otherwise remaining Period

of Employment without any duty on the part of Executive to mitigate such

payments; provided, however, that if Executive should die prior to the end of

such period, the provisions of Section 5(a) hereof shall be applicable as

though Executive's employment hereunder had not been so terminated.

(c)           Notwithstanding

Section 5(b) hereof, in the event that following a Change in Control (as

defined in Section 5(f) hereof) Executive is discharged by the Company other

than for Cause (as defined in Section 5(d) hereof) or other than pursuant to

Section 5(a) hereof by reason of physical or mental disability, or Executive

terminates employment with the Company for Good Reason (as defined in Section

5(e) hereof), Executive shall have no further obligations or duties under this

Agreement; provided, however, that Executive shall continue to be bound by the

provisions of Section 6 hereof if the Company performs its obligations under

this Section 5(c).  In the event of

termination of the Period of Employment pursuant to the preceding sentence, the

Company shall, in addition to paying the obligations accrued under Section 4 at

the date of termination, (i) pay Executive, within 30 days of such termination,

a cash severance payment, with no duty by Executive to mitigate such payment,

in an amount equal to three times the annual base salary payable to Executive

under Section 4(a) on the day before such termination; provided, however, that

the amount of such severance payment shall be capped to the extent necessary to

avoid an excess parachute payment that would trigger an excise tax; and (ii)

pay on Executive’s behalf the next five annual premium payments for Executive’s

deferred compensation plan then in effect.

(d)           For purposes of this Section 5, the

term “Cause” shall mean (i) conviction of a felony, (ii) embezzlement or

misappropriation of funds or property of the Company or any of its Affiliates,

(iii) Executive's consistent refusal to substantially perform, or willful

misconduct in the substantial performance of, his duties and obligations hereunder;

or (iv) Executive's engaging in activity that the Board of Directors determines

in its reasonable judgment could result in the suspension or revocation of any

video lottery, parimutuel, or other gaming license or permit held by the

Company or any of its subsidiaries.

(e)           For

purposes of this Section 5, the term “Good Reason” shall mean (i) the

assignment to Executive of any duties or responsibilities which in the

reasonable judgment of Executive are inconsistent in any respect with

Executive’s position (including status, offices, titles and reporting

requirements), authority, duties or responsibilities as contemplated by Section

3, or any other action by the Company which in the reasonable judgment of

Executive results in a substantial diminishment in such position, authority,

duties or responsibilities (provided, however, that the assignment of tasks or

responsibilities previously performed by Executive to Executive’s subordinates

shall not constitute Good Reason); (ii) the Company’s requiring relocation of

Executive, without his prior written consent, to a place of employment other

than Ada, Michigan, Chester, West Virginia, or Las Vegas or Reno, Nevada,

except for travel reasonably required in the performance of Executive’s

responsibilities (it being understood that the Company’s obligation to provide

Working Facilities only at its corporate headquarters shall not constitute

relocation for purposes of determining Good Reason); or (iii) the Company’s

failure to substantially comply with the provisions of Section 4 of this

Agreement.

(f)            For purpose of this Section 5, the

term “Change in Control” shall mean: (i) a change in control of a nature that

would be required to be reported in response to Item 6(e) of Schedule 14A, as

in effect on the date hereof, under the Securities Exchange Act of 1934, as

amended (the “Exchange Act”); (ii) any person, including a “group” as such term

used in Section 13(d)(3) of the Exchange Act, becoming the beneficial owner,

directly or indirectly, of 20% or more of the combined voting power of the

Company’s outstanding voting securities other than a person who was an officer

or director of the Company on the date of this Agreement; or (iii) individuals

who, as of the date hereof, constitute the Board of Directors ceasing for any

reason to constitute at least a majority of the Board of Directors; provided,

however, that in the case of a Change in Control pursuant to this Section

5(f)(iii), Executive may not terminate this Agreement for Good Reason unless

Executive does so by written notice within five (5) business days after

Executive has actual notice that such Change in Control has occurred.

(g)           Upon the termination of the Executive’s Period of

Employment pursuant to Section 2 or Section 5 (other than for Cause) hereof, the

Executive shall have the right to purchase from the Company for a price equal

to the then-depreciated book value (i) the furnishings in the Executive's

office at the Company’s headquarters as well as in any living quarters/office

contemplated by Section 4(i) hereof; (ii) any residence then owned by the

Company pursuant to Section 4(i) hereof; and (iii) any passenger automobiles

owned by the Company and generally used by the Executive; provided, however,

that Executive’s right pursuant to this Section 5(g) shall not prevent the

Company from selling any of such real or personal property during the Period of

Employment and thus shall not be deemed as an encumbrance or defect with

respect to the Company’s title to such property.  Further, with respect to any purchases pursuant to this

Paragraph 5(g), the Executive shall have forty-five (45) days in which to

notify the Company of his intent to exercise such right, with closing to occur

within a reasonable time thereafter. 

Executive’s rights hereunder shall not be transferable.

                6.             Confidentiality and

Non-Competition:

(a)           The Company and Executive acknowledge

that the services to be performed by Executive under this Agreement are unique

and extraordinary and, as a result of such employment, Executive will be in possession

of confidential information and trade secrets (collectively, “Confidential

Material”) relating to the business practices of the Company and its

affiliates.  Executive agrees that he

will not, directly or indirectly, (i) disclose to any other person or entity

either during or after his employment by the Company or (ii) use, except during

his employment by the Company in the business and for the benefit of the

Company or any of its affiliates, any Confidential Material acquired by

Executive during his employment by the Company, without the prior written

consent of the Company or otherwise than as required by law or any rule or

regulation of any federal or state authority. 

Upon termination of his employment with the Company for any reason,

Executive agrees to return to the Company all tangible manifestations of

Confidential Materials and all copies thereof. 

All programs, ideas, strategies approaches, practices or inventions

created, developed, obtained or conceived of by Executive prior to or during the

term hereof by reason of his engagement by the Company, shall be owned by and

belong exclusively to the Company, provided that they are related in any manner

to its business or that of any of its Affiliates.  Executive shall (i) promptly disclose all such programs, ideas,

strategies, approaches, practices, inventions or business opportunities to the

Company, and (ii) execute and deliver to the Company, without additional

compensation, such instruments as the Company may require from time to time to

evidence its ownership of any such items.

(b)           Executive

agrees that during the term hereof, and for a period of two years from the

termination of Executive’s employment if for Cause (as defined in Section

5(d)), he will not become a stockholder, director, officer, employee or agent

of or consultant to any corporation (other than an Affiliate), or member of or

consultant to any partnership or other entity, or engage in any business as a

sole proprietor or act as a consultant to any such entity, or otherwise engage,

directly or indirectly, in any enterprise, in each case which competes with any

business or activity engaged in, or known by Executive to be contemplated to be

engaged in, by the Company or any of its Affiliates within ninety miles of any

location in which the company or any Affiliate does business or in which

Executive has knowledge that the Company or any of its Affiliates contemplates

doing business (five miles in the case of Nevada); provided, however, that

competition shall not include the ownership (solely as an investor and without

any other participation in or contact with the management of the business) of

less than five percent (5%) of the outstanding shares of stock of any

corporation engaged in any such business, which shares are regularly traded on

a national securities exchange or in an over-the-counter market. Executive

agrees that during the non-compete period referred to in this Section 6,

neither Executive nor any person or enterprise controlled by Executive will

solicit for employment any person employed by the Company or any of its

Affiliates at, or at any time within three months prior to, the time of the

solicitation.

(c)           Executive agrees that the remedy at

law for any breach by him of this Section 6 will be inadequate and that the Company

shall be entitled to injunctive relief.

                7.             General.  This Agreement is further governed by the

following provisions:

(a)           Notices.  Any notice or other communication required

or permitted to be given hereunder shall be made in writing and shall be delivered

in person, by facsimile transmission or mailed by prepaid registered or

certified mail, return receipt requested, addressed to the parties at the

address stated above or to such other address as either party shall have

furnished in writing in accordance with this Section.  Such notices or communications shall be effective upon delivery

if delivered in person or by facsimile and either upon actual receipt or three

(3) days after mailing, whichever is earlier, if delivered by mail.

(b)           Parties In Interest.  This Agreement shall be binding upon and inure to the benefit of

Executive, and it shall be binding upon and inure to the benefit of the Company

and any corporation succeeding to all or substantially all of the business and

assets of the Company by merger, consolidation, purchase of assets or

otherwise.

(c)           Arbitration. 

Any disputes arising under the terms of this Agreement shall be settled

by binding arbitration between the parties in Hancock County, West Virginia in

a proceeding held under the rules of the American Arbitration Association.  In such proceeding, each party shall choose

one arbitrator and the two so chosen shall choose a third arbitrator.  The vote of two of the arbitrators shall be

sufficient to determine an award.

(d)           Entire Agreement. 

The Amended 1999 Agreement having been cancelled as of the date of this

Agreement, this Agreement supersedes any and all other agreements, either oral

or in writing, between the parties hereto with respect to the employment of

Executive by the Company and contains all of the covenants and agreements

between the parties with respect to such employment in any manner

whatsoever.  Any modification of this

Agreement will be effective only if it is in writing signed by the party to be

charged.

(e)           Governing Law. 

This Agreement shall be governed by and construed in accordance with the

laws of the State of Delaware without giving effect to the choice of law or

conflicts of law rules and laws of such jurisdiction.

(f)            Severability. 

In the event that any term or condition contained in this Agreement

shall for any reason be held by a court of competent jurisdiction to be

invalid, illegal or unenforceable in any respect, such invalidity, illegality

or unenforceability shall not affect any other term or condition of this

Agreement, but this Agreement shall be construed as if such invalid or illegal

or unenforceable term or condition had never been contained herein.

                IN WITNESS WHEREOF, the parties hereto have executed

this Agreement as of the day and year first above written.

	

   

  	

   

  	

  MTR GAMING GROUP, INC.

  
	

  /s/  Edson R. Arneault

  	

   

  	

   /s/ 

  Robert L. Ruben

  
	

  Edson R. Arneault

  	

   

  	

  Robert L. Ruben, Assistant Secretary,

  
	

   

  	

   

  	

       Chairman

  of the Compensation

  
	

   

  	

   

  	

       Committee

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   /s/  Robert A. Blatt

  
	

   

  	

   

  	

  Robert A. Blatt, Assistant Secretary,

  
	

   

  	

   

  	

       Member of

  the Compensation

  
	

   

  	

   

  	

       Committee

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   /s/ 

  Edson R. Arneault

  
	

   

  	

   

  	

  Edson R. Arneault, President and

  
	

   

  	

   

  	

       Chief

  Executive Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]