EXECUTIVE OFFICER SALARY/BONUS AGREEMENT
This Agreement is entered into this 1 day of March, 1998, effective as of
the 1st day of January, 1998, by and between Casino Magic Corp. (the
"Company") and James E. Ernst (the "Employee").
RECITALS
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A. The Employee is employed by the Company as its President and Chief
Executive Officer.
B. The Company and the Employee are parties to an Employment
Agreement dated December 20, 1995, as amended on April 1, 1997, which provides
for termination without cause upon 30 days notice (the "Employment
Agreement").
C. Under the Employment Agreement, Employee is entitled to a salary
at the annual rate of $425,000 beginning January 1, 1998.
D. Employee is desirous of participating in the Company's 1998
Executive Officer Bonus Plan (the "Plan"), a copy of which has been provided
to Employee.
E. The Compensation Committee has adopted resolutions regarding the
payment of bonuses to Employee under the Plan.
AGREEMENT
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Accordingly, the Company and Employee agree as follows:
1. Bonus Plan. Employee shall be a Participant in the Plan, based
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upon the resolutions of the Compensation Committee adopted on March 20, 1998
(the "Resolutions"), a copy of which Resolutions has been provided to
Employee.
2. Salary. The Company shall pay and the Employee will accept a
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salary at the annual rate of $375,000 in semi-monthly installments, commencing
January 1, 1998, through December 31, 1998.
3. Superseding Effect. This Agreement shall amend and supersede the
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provisions of all other agreements between the Company and Employee relating
to the amount of Employee's base salary, including that contained in the
salary provision of the Employment Agreement. Except for provisions relating
to salary, all written agreements between the Company and Employee shall
remain in full force and effect.
4. Acknowledgement by Employee. Employee acknowledges that by
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executing this Agreement, Employee may be accepting a salary payable at a
lower rate than he would otherwise be entitled, and that the criteria for the
payment of a Bonus under the Plan and Resolutions may not be met at one or
more times for the calendar year 1998, and that as a result, Employee's
compensation in 1998 may be less than that which he would have gotten had he
not executed this Agreement.
5. No Guaranty of Employment. Nothing in this Agreement, the Plan or
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the Resolutions shall be construed as an agreement for continued employment of
Employee, and Employee acknowledges that, except as may be provided under any
other written agreement between the Company and Employee, Employee is an
at-will employee of the Company subject to termination with or without cause
upon notice.
6. Waiver. No waiver of any term, condition or covenant of this
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Agreement by a party shall be deemed to be a waiver of any subsequent breaches
of the same or other terms, covenants or conditions hereof by such party.
7. Counterparts. This Agreement may be executed in counterparts,
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each of which shall be deemed to be an original, and all such counterparts
shall constitute one instrument.
8. Construction. Whenever possible, each provision of this Agreement
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shall be interpreted in such manner as to be effective or valid under
applicable law, but if any provision of this Agreement shall be prohibited by
or invalid under applicable law, such provision shall be ineffective only to
the extent of such prohibition or invalidity without invalidating the
remainder of such provision or the remaining provisions of this Agreement.
9. Applicable Law. This Agreement shall be governed by, and
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construed in accordance with, the laws of the state of Mississippi.
10. Attorneys Fees. In the event a judgment is entered against any
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party hereto in a court of competent jurisdiction based upon a breach of the
terms of this Agreement, the prevailing party shall be entitled to receive, as
part of any award, the amount of reasonable attorney's fees and expenses
incurred by the prevailing party in such action. A party shall be deemed to
have prevailed if the judgment entered (without including attorney's fees and
expenses) is more favorable to that party than any offer of settlement made to
that party within twenty days after the services of the complaint in such
action.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
as of the date first above written.
CASINO MAGIC CORP. EMPLOYEE
By: _________________________________
_________________________________
James E. Ernst, President James E. Ernst