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EXHIBIT 10.1
AMENDMENT TO EMPLOYMENT AGREEMENT
This Amendment to Employment Agreement is entered into as of July 20, 1998, by
and between Xxxx X. Acres of 00 Xxxxxxx Xxxxxxx Xxxxx, Xxxxxxxxx, XX 00000
("Employee"), and Acres Gaming, Inc., a Nevada corporation with its principal
place of business located at 0000 X.X. Xxxxx Xxxxxx, Xxxxxxxxx, Xxxxxx
("Employer").
RECITALS
A. Employer and Employee entered into an Employment Agreement dated as of
July 1, 1996 ("Agreement"), pursuant to which Employee was employed as
Chief Executive Officer of the Company;
B. Employer and Employee have agreed that it is in their mutual best
interest that Xxxxx X. Xxxxxxx be elected as President and Chief
Executive Officer of the Company;
C. Employer and Employee have agreed that it is appropriate that Employee's
bonus be reduced.
In consideration of the foregoing and the mutual promises and agreements
set forth herein, Employer and Employee agree as follows:
SECTION 1. DUTIES
The first sentence of Section 1.2 of the Agreement is hereby amended to
read as follows:
"During the term of this Agreement, Employee shall perform
faithfully and to the best of Employee's ability such management duties
appropriate to the Chairman of the Board of Directors as may be assigned
from time to time by the Board of Directors of Employer."
SECTION 2. COMPENSATION
Section 3(b) of the Agreement is hereby amended to read as follows:
(b) An annual bonus ("Bonus") payable on or before September 30
of each year with respect to the preceding fiscal year, determined in
accordance with the table below.
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FISCAL
YEAR
ENDING PROFITS BONUS
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June 30, If less than $1,000,000 $50,000
1997 If $1,000,000 or more $100,000, plus 5% of the amount by
which Profits exceed $1,000,000
June 30, If less than $1,000,000 None
1998 If $1,000,000 or more but less than $50,000
$2,000,000
If $2,000,000 or more $100,000, plus 5% of the amount by
which Profits exceed $2,000,000
June 30, If less than $2,000,000 None
1999 If $2,000,000 or more but less than $50,000
$3,000,000
If $3,000,000 or more $100,000, plus 3% of the amount by
which Profits exceed $3,000,000
June 30, If less than $2,000,000 None
2000 If $2,000,000 or more but less than $50,000
$3,000,000
If $3,000,000 or more $100,000, plus 1% of the amount by
which Profits exceed $3,000,000
June 30, If less than $2,000,000 None
2001 If $2,000,000 or more but less than $50,000
$3,000,000
If $3,000,000 or more $100,000
"Profits" of Employer shall mean Income Before Income Taxes as adjusted
to add back any bonus paid pursuant to this Section 3(b). Profits for each
fiscal year shall be calculated by the certified public accountants regularly
employed to audit the books of Employer. Such calculation shall be in accordance
with generally accepted accounting principles applied on a basis consistent with
the practices of Employer.
SECTION 3. JURISDICTION; SERVICE OF PROCESS
The first sentence of Section 21 of the Agreement is amended by
replacing County of Washo with County of Xxxxx.
All other provisions of the Agreement shall remain in full force and
effect.
In witness whereof, the parties have executed this Amendment in Las
Vegas, Nevada, as of the date first above written.
EMPLOYEE EMPLOYER
Acres Gaming, Inc.,
a Nevada corporation
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Xxxx X. Acres By:
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Its:
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