Sample Business Contracts

Employment Agreement - World Poker Tour LLC and Steven Lipscomb

Employment Forms

  • Employment Agreement. Employers can customize an employment agreement that states the salary, benefits, working hours and other important provisions for their new or existing employee.
  • Consulting Agreement. Answer simple questions to build a contract with a consultant. Specify the services rendered, when payment is due, as well as IP rights.
  • Commission Agreement. Employers who compensate their sales employees based on commissions can prepare an agreement to reduce misunderstandings by specifying the base salary and how commissions are calculated.
  • Executive Employment Agreement. Companies may offer their business executives a contract that is different from the one provided to their regular employees. Executive employment agreements may be more complex because the compensation structure may include a combination of salary and commissions, provide for bonuses based on sales, stock or other financial targets, and include non-compete, confidentiality and severance provisions.
  • Sales Representative Contract. Independent sales representatives offer companies the potential to increase the sale of products or services without the burden of increasing headcount. Both parties should understand how commissions are calculated, when commissions will be paid, as well as how the representative will treat confidential information from the company and whether the representative may also sell a competing line of products or services.
  • More Employment Agreements

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                              WORLD POKER TOUR, LLC
                            1041 NORTH FORMOSA AVENUE
                           FORMOSA BUILDING, SUITE 99
                        WEST HOLLYWOOD, CALIFORNIA 90046

April 14, 2004

Mr. Steven Lipscomb
c/o World Poker Tour, LLC
1041 North Formosa Avenue
Formosa Building, Suite 99
West Hollywood, California  90046

         Re:  Employment Agreement Terms

Dear Steve:

         This term sheet sets forth the understandings with respect to the terms
and conditions of your proposed employment with WPT Enterprises, Inc. ("WPT").
The parties agree that this term sheet represents the good faith intention of
the parties to enter into a long form employment agreement that is consistent
with the terms set forth below (the "Employment Agreement"). Until such a long
form agreement is executed and delivered, this term sheet shall be binding on
both parties.

1.       TERM:  3-years commencing on December 29, 2003.

2.       TITLE:  Founder, President and Member, Board of Directors of WPT.

3.       SALARY AND BENEFITS: $500,000 per year, subject to increase at the
         discretion of the Board. Salary change will be effective as of December
         29, 2003 and any shortfall in the salary you received since December
         29, 2003 will be paid to you as soon as practicable following execution
         of this letter agreement. You will also be entitled to the benefits and
         perquisites which WPT provides to its employees generally, as
         determined by WPT's board of directors (or a committee thereof) in its

4.       BONUSES:  You will be entitled to receive annual bonuses during the
         term of the Employment Agreement as follows:

          o    You will continue participation in the10% bonus pool described in
               the Section 3 of the Management Contract and Contribution
               Agreement between you and World Poker Tour, LLC dated March 4,
               2002 (the "Prior Management Agreement") and Section 10.17 of the
               World Poker Tour Limited Liability Company Agreement dated March
               4, 2002 (10% of profits for the first five years of business);


          o    For each fiscal year, you will be entitled to 5% of the Profits
               (as such term is defined in the World Poker Tour Limited
               Liability Company Agreement dated March 4, 2003) in excess of
               $3,000,000 that is realized by WPT from and after the closing
               date of the initial public offering. In the event your employment
               with WPT is terminated either by you or by WPT for Cause (as
               defined in Section 8 hereof) prior to the end of a fiscal year in
               which you are entitled to receive this bonus, you will be
               entitled to receive a pro-rata portion of this bonus based on the
               portion of the applicable fiscal year during which you were

5.       STOCK OPTIONS: You will receive an option (the "Option") to purchase
         600,000 shares of WPT common stock on the closing date of the IPO at an
         exercise price equal to the per share IPO price of the common stock.
         The Option will vest in equal installments over three years, commencing
         on December 29, 2004. All limited liability company units you currently
         hold in World Poker Tour, LLC shall be converted to proportional shares
         of WPT common stock, with the forfeiture restrictions on such shares
         lapsing on the same schedule outlined in the Prior Management

         the bonus arrangements set forth in paragraph 4 above and the stock
         option grant contemplated by paragraph 5 above will be structured to
         ensure (i) qualification for expense deduction thereof by WPT under
         Section 162(m) of the Internal Revenue Code of 1986, and (ii)
         compliance with applicable Nasdaq Marketplace Rules (including without
         limitation Rule 4350(c)).

7.       EXCLUSIVITY: During the term of the Employment Agreement, you agree not
         to compete with WPT in connection with poker and gaming related
         television and film projects (the "Restricted Projects"). In addition,
         during the term of the Employment Agreement, you will advise the Board
         in advance of pursuing any television and film projects that are
         non-Restricted Projects and offer any such non-Restricted Projects to
         WPT, which the Board may accept or reject within ten (10) days in its
         sole discretion. If the Board rejects a non-Restricted Project, you
         may pursue such project individually. It is understood that your
         current "Psycho Bunnies," "Big Pitch with Norman Lear" and "The Music
         Man" projects will not be considered Restricted Projects and you will
         be able to pursue these projects individually without obtaining Board
         approval. In no event shall your individual pursuit of a
         non-Restricted Project rejected by the Board interfere with your
         duties under the Employment Agreement.

8.       SEVERANCE: Upon termination without Cause, you will be entitled to
         receive all salary and any applicable bonus amounts through the term
         of the Employment Agreement and the vesting of all previously unvested
         portions of the Option will



         accelerate. "Cause" will be defined as (i) your willful and continued
         failure to substantially perform your duties as reasonably assigned,
         (ii) your indictment for a criminal offense related to theft or
         embezzlement from WPT, which charges are not dismissed, or of which
         you are not acquitted within one (1) year, or (iii) your indictment
         for any felony offense that is not the result of actions performed by
         you within the scope of activities approved by the Board, which
         charges are not dismissed, or of which you are not acquitted, within
         one (1) year.

         If this term sheet is consistent with your understanding, please so
confirm by executing and returning the attached copy of this term sheet to
Timothy Cope, c/o Lakes Entertainment, Inc., 130 Cheshire Lane, Minnetonka,
Minnesota 55305.


By: /s/ Lyle Berman
    Lyle Berman, Chief Executive Officer

Accepted and agreed to on
April 14, 2004.

/s/ Steven Lipscomb
Steven Lipscomb