EXECUTIVE EMPLOYMENT AGREEMENT
THIS AGREEMENT is made as of this 28 th day of June, 2002, by and between AMERICAN WAGERING, INC., a Nevada
corporation (hereinafter called the “Company”), and VICTOR J. SALERNO, an individual (hereinafter called the “Executive”).
The Company is a holding company which owns and operates several subsidiary corporations including, but not limited
to, Leroy’s Horse & Sports Place, Inc., Computerized Bookmaking Systems, Inc., AWI Manufacturing, Inc., Secured Telephone
Operating Platform, Inc., etc. Executive is knowledgeable and experienced regarding the Company’s business and its products
and services. The Company and Executive desire to enter into an employment agreement subject to the terms and conditions
For the purpose of this Agreement, the following terms shall have the meanings specified below:
1.1 “Affiliate” means any corporation, general or limited partnership, joint venture or other person or legal entity that (i) is
owned by, (ii) owns, or (iii) is under common control of the Company. For the purposes of this definition, ownership, directly or
indirectly, of 50% of the capital stock having the right to vote for directors of a corporation, or 50% of the equity interest of a
general or limited partnership or joint venture, shall constitute ownership thereof.
1.2 “Basic Salary” shall have the meaning assigned to that term in Section 5 of this Agreement.
1.3 “Board of Directors” means the board of directors of the Company.
1.4 “Cause” shall mean where the Executive has:
failed to cure, after reasonable notice of not less than Thirty (30) days, a material breach of any of the terms of this
(b) been formally charged with or convicted of a crime involving fraud, theft, embezzlement, assault, battery, rape, or
other violent act or another crime involving dishonesty, violence or moral turpitude;
(c) declined to