Exhibit 10.46
Amendment to Employment and
Severance Benefits Agreement
Amendment to Employment Agreement
(this “Amendment”), dated as of December 30, 2008,
by and between Scientific Games Corporation, a Delaware corporation
(the “Company”), and Ira H. Raphaelson
(“Executive”).
WHEREAS, Executive has been employed
pursuant to an Employment and Severance Benefits Agreement dated as
of December 15, 2005 by and between the Company and Executive
(the “2005 Agreement”), as amended by a letter
agreement dated August 2, 2006 (the “August 2006
Amendment”) and as amended further by a letter agreement
dated October 6, 2008 (the “October 2008
Amendment” and, collectively with the 2005 Agreement and the
August 2006 Amendment, the “Employment
Agreement”); and
WHEREAS, the Company and Executive
desire to amend the Employment Agreement as set forth herein to
bring the Employment Agreement into compliance with
Section 409A of the Internal Revenue Code of 1986 and the
regulations and Treasury guidance thereunder; and
WHEREAS, the amendments contemplated
hereby are intended to bring the timing of, and certain procedural
aspects with respect to, certain payments under the Employment
Agreement into compliance with Section 409A but not to
otherwise affect Executive’s right to such
payments.
NOW THEREFORE, in consideration of
the premises and the mutual benefits to be derived herefrom and
other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as
follows:
1.
Section 8(b)(iii) of
the Employment Agreement is hereby amended to replace the initial
clause “Commencing on the six month anniversary of the
Termination Date” with “Commencing on the first payroll
following the Termination Date”.
2.
The second
sentence of Section 8(c) is hereby amended to
(a) delete the words commencing with “it will pay to
Executive” and ending with the word “provided”
and replacing such words with “it shall reimburse Executive
on an after-tax basis for the costs he incurs in obtaining the
benefits that are reasonably comparable to the benefits the Company
would otherwise provide” and (b) delete the portion of
the sentence after the semicolon and substitute a period for the
semicolon.
3.
Section 21
of the Employment Agreement is hereby amended by inserting the
following three sentences after the first sentence
thereof:
“The
Company shall provide Executive with the proposed form of release
referred to in the immediately preceding sentence no later than two
days following the Termination Date. The Executive shall have
21 days to consider the release and if he executes the release,
shall have seven (7) days after execution of the release to
revoke the release, and, absent such revocation, the release shall
become binding. Provided Executive does not revoke the
release, payments contingent on the release (if any) shall be paid
no earlier than eight (8) days after execution thereof in
accordance with the applicable provisions
herein.”
4.
Clause 2 of the
provisions of the October 2008 Amendment under the caption
“Termination in connection with Change in Control” is
hereby amended by deleting the end of such clause 2 commencing with
“in a lump sum” and replacing such portion of clause 2
with the following:
“in equal
monthly installments over a perio