Employment Agreement between Wynn Las Vegas, LLC and James E. Pettis



 Exhibit 10.36 
  

  
 EMPLOYMENT AGREEMENT 
 (“Agreement”) 
  
 - by and between - 
  
 WYNN LAS VEGAS, LLC, 
 dba Le
Rêve 
 (“Employer”) 
  
 - and - 
  
 JAMES E. PETTIS 
 (“Employee”) 
  

  
 DATED: as of December 16, 2002 
  








 EMPLOYMENT AGREEMENT 
  
 THIS EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of the 16th day of December,
2002, by and between WYNN LAS VEGAS, LLC, dba Le Rêve (“Employer”) and JAMES E. PETTIS (“Employee”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, Employer is a limited liability company duly organized and existing under the laws of the State of Nevada, maintains its principal
place of business at 3145 Las Vegas Blvd. South, Las Vegas, Nevada, and is engaged in the business of developing, constructing and operating a casino resort at such place of business; and, 
  
 WHEREAS, in furtherance of its business, Employer has need of
qualified, experienced personnel; and, 
  
 WHEREAS,
Employee is an adult individual residing at 1216 Strong Drive, Las Vegas, Nevada 89102; and, 
  
 WHEREAS, Employee has represented and warranted to Employer that Employee possesses sufficient qualifications and expertise in order to fulfill the terms of the employment stated in this Agreement; and,

  
 WHEREAS, Employer is willing to employ Employee,
and Employee is desirous of accepting employment from Employer under the terms and pursuant to the conditions set forth herein; 
  
 NOW, THEREFORE, for and in consideration of the foregoing recitals, and in consideration of the mutual covenants, agreements,
understandings, undertakings, representations, warranties and promises hereinafter set forth, and intending to be legally bound thereby, Employer and Employee do hereby covenant and agree as follows: 
  
 1. DEFINITIONS. As used in this Agreement, the words
and terms hereinafter defined have the respective meanings ascribed to them, unless a different meaning clearly appears from the context: 
  
 (a) “Affiliate” - means with respect to a specified Person, any other Person who or which is (i) directly or
indirectly controlling, controlled by or under common control with the specified Person, or (ii) any member, director, officer or manager of the specified Person. For purposes of this definition, only, “control”, “controlling”,
and “controlled” mean the right to exercise, directly or indirectly, more than fifty percent (50%) of the voting power of the stockholders, members or owners and, with respect to any 








 
individual, partnership, trust or other entity or association, the possession, directly or indirectly, of the power to direct or cause the direction of the
management or policies of the controlled entity. 
  
 (b) “Anniversary” - means each anniversary date of the Effective Date during the Term (as defined in Paragraph 6 hereof). 
  
 (c) “Cause” - means 
  
 (i) the willful destruction by Employee of the property of Employer or an Affiliate having a material value to Employer or such Affiliate;

  
 (ii) fraud, embezzlement, theft, or
comparable dishonest activity committed by Employee (excluding acts involving a de minimis dollar value and not related to Employer or an Affiliate); 
  
 (iii) Employee’s conviction of or entering a plea of guilty or nolo contendere to any crime constituting a felony or any
misdemeanor involving fraud, dishonesty or moral turpitude (excluding acts involving a de minimis dollar value and not related to Employer or an Affiliate); 
  
 (iv) Employee’s breach, neglect, refusal, or failure to materially discharge his duties (other than due
to physical or mental illness) commensurate with his title and function, or Employee’s failure to comply with the lawful directions of Employer, that is not cured within fifteen (15) days after Employee has received written notice thereof from
Employer; 
  
 (v) a willful and knowing material
misrepresentation to Employer’s or an Affiliate’s Board of Directors; 
  
 (vi) a willful violation of a material policy of Employer or an Affiliate, which does or could result in material harm to Employer or to
Employer’s reputation, or that of an Affiliate; or 
  
 (vii) Employee’s material violation of a statutory or common law duty of loyalty or fiduciary duty to Employer or an Affiliate, 
  

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 provided, however, that Employee’s disability due to illness or accident or any
other mental or physical incapacity shall not constitute “Cause” as defined herein. 
  
 (d) “Change of Control” - means the occurrence, after the Effective Date, of any of the following events:

  
 (i) any “Person” or
“Group” (as such terms are defined in Section 13(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) and the rules and regulations promulgated thereunder), excluding any Excluded Stockholder, is or becomes the
“Beneficial Owner” (within the meaning of Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of Employer, or of any entity resulting from a merger or consolidation involving Employer, representing more
than fifty percent (50%) of the combined voting power of the then outstanding securities of Employer or such entity; 
  
 (ii) the individuals who, as of the time immediately following the closing of Employer’s initial public offering, are members of
Employer’s Board of Directors (the “Existing Directors”) cease, for any reason, to constitute more than fifty percent (50%) of the number of authorized directors of Employer as determined in the manner prescribed in Employer’s
Articles of Incorporation and Bylaws; provided, however, that if the election, or nomination for election, by Employer’s stockholders of any new director was approved by a vote of at least fifty percent (50%) of the
Existing Directors, such new director shall be considered an Existing Director; provided further, however, that no individual shall be considered an Existing Director if such individual initially assumed office as a
result of either an actual or threatened “Election Contest” (as described in Rule 14a-11 promulgated under the Exchange Act) or other actual or threatened solicitation of proxies by or on behalf of anyone other than the Board (a
“Proxy Contest”), including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest; or 
  
 (iii) the consummation of (x) a merger, consolidation or reorganization to which Employer is a party, whether or not Employer is the
Person surviving or resulting therefrom, or (y) a sale, assignment, lease, conveyance or other disposition of all or substantially all of the assets of Employer, in one transaction or a series of related transactions, to any Person other than
Employer, where any 

  

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such transaction or series of related transactions as is referred to in clause (x) or clause (y) above in this subparagraph (iii) (singly or collectively, a
“Transaction”) does not otherwise result in a “Change in Control” pursuant to subparagraph (i) of this definition of “Change in Control”; provided, however, that no such Transaction shall constitute
a “Change in Control” under this subparagraph (iii) if the Persons who were the stockholders of Employer immediately before the consummation of such Transaction are the Beneficial Owners, immediately following the consummation of such
Transaction, of fifty percent (50%) or more of the combined voting power of the then outstanding voting securities of the Person surviving or resulting from any merger, consolidation or reorganization referred to in clause (x) above in this
subparagraph (iii) or the Person to whom the assets of Employer are sold, assigned, leased, conveyed or disposed of in any transaction or series of related transactions referred in clause (y) above in this subparagraph (iii), in substantially the
same proportions in which such Beneficial Owners held voting stock in Employer immediately before such Transaction. 
  
 For purposes of the foregoing definition of “Change in Control,” the term “Excluded Stockholder” means Stephen A. Wynn, the spouse,
siblings, children, grandchildren or great grandchildren of Stephen A. Wynn, any trust primarily for the benefit of the foregoing persons, or any Affiliate of any of the foregoing persons. 
  
 (e) “Complete Disability” - means
the inability of Employee, due to illness or accident or other mental or physical incapacity, to perform his obligations under this Agreement for a period as defined by Employer’s disability plan or plans. 
  
 (f) “Effective Date” - means
December 16, 2002. 
  
 (g) “Good
Reason” - means the occurrence, on or after the occurrence of a Change in Control, of any of the following (except with Employee’s written consent or resulting from an isolated, insubstantial and inadvertent action not taken in bad
faith and which is remedied by Employer or its Affiliate promptly after receipt of notice thereof from Employee): 
  
 (i) Employer or an Affiliate reduces Employee’s Base Salary (as defined in Subparagraph 8(a) below); 
  
 (ii) Employer discontinues its bonus plan in which Employee
participates as in effect immediately before the 

  

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Change in Control without immediately replacing such bonus plan with a plan that is the substantial economic equivalent of such bonus plan, or amends such
bonus plan so as to materially reduce Employee’s potential bonus at any given level of economic performance of Employer or its successor entity; 
  
 (iii) Employer materially reduces the aggregate benefits and perquisites to Employee from those being provided immediately before the
Change in Control; 
  
 (iv) Employer or any of
its Affiliates requires Employee to change the location of Employee’s job or office, so that Employee will be based at a location more than 25 miles from the location of Employee’s job or office immediately before the Change in Control;

  
 (v) Employer or any of its Affiliates reduces
Employee’s responsibilities or directs Employee to report to a person of lower rank or responsibilities than the person to whom Employee reported immediately before the Change in Control; or 
  
 (vi) the successor to Employer fails or refuses expressly to
assume in writing the obligations of Employer under this Agreement. 
  
 For purposes of this Agreement, a determination by Employee that Employee has “Good Reason” shall be final and binding on Employer and Employee absent a showing of bad faith on Employee’s part. 
  
 (h) “Separation Payment” - means a
lump sum equal to (A) Employee’s Base Salary (as defined in Subparagraph 8(a) of this Agreement) for the twelve (12) months immediately following termination, plus (B) the bonus that was paid to Employee under Subparagraph 8(b) for the
preceding bonus period, projected over the twelve (12) months following that bonus period, plus (C) any accrued but unpaid vacation pay, plus (D) any Gross-Up Payment required by Exhibit 1 to this Agreement, which is incorporated herein by
reference. 
  
 2. PRIOR EMPLOYMENT. This
Agreement supersedes and replaces any and all prior employment agreements, change in control agreements and severance plans or agreements, whether written or oral, by and between Employee, on the one side, and Employer or any Affiliate of Employer,
on the other side, or under which Employee is a participant. From and after the Effective Date, Employee shall be the employee of Employer under the terms and pursuant to the conditions set forth in this Agreement. 
  

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 3. BASIC EMPLOYMENT AGREEMENT. Subject to the terms and pursuant to the conditions
hereinafter set forth, Employer hereby employs Employee during the Term hereinafter specified to serve in a capacity, under a title, and with such duties not inconsistent with those set forth in Section 4 of this Agreement, as the same may be
modified and/or assigned to Employee by Employer from time to time; provided, however, that no change in Employee’s duties shall be permitted if it would result in a material reduction in the level of Employee’s duties as in effect prior
to the change, it being understood, however, that a change in Employee’s reporting responsibilities is not, itself, a basis for finding a material reduction in the level of duties. 
  
 4. DUTIES OF EMPLOYEE. Employee shall perform such duties assigned to Employee by Employer as are
generally associated with the duties of Senior Vice President - Administration for Employer or such similar duties as may be assigned to Employee by Employer as Employer may determine. Employee’s duties shall include, but not be limited
to: (i) the efficient and continuous operation of Employer and its Affiliates; (ii) the preparation of relevant budgets and allocation or relevant funds; (iii) the selection and delegation of duties and responsibilities of subordinates; (iv) the
direction, review and oversight of all programs under Employee’s supervision; and (v) such other and further duties as may be assigned by Employer to Employee from time to time. The foregoing notwithstanding, Employee shall devote such time to
Employer’s Affiliates as may be required by Employer, provided such duties are not inconsistent with Employee’s primary duties to Employer hereunder. 
  

5. ACCEPTANCE OF EMPLOYMENT. Employee hereby unconditionally accepts the employment set forth hereunder, under the terms and
pursuant to the conditions set forth in this Agreement. Employee hereby covenants and agrees that, except for continuing his historical practice of consulting and advising third parties on insurance matters on a limited and periodic basis (provided
the same does not interfere with the performance of Employee’s duties under this Agreement), and in other instances only upon Employer’s prior express written authorization, Employee will devote the whole of Employee’s normal and
customary working time and best efforts solely to the performance of Employee’s duties under this Agreement and shall not perform any services for any casino, hotel/casino or other similar gaming or gambling operation not owned by Employer or
any of Employer’s Affiliates. 
  
 6.
TERM. Unless sooner terminated as provided in this Agreement, the term of this Agreement (the “Term”) shall consist of five (5) years commencing as of the Effective Date of this Agreement and terminating on the fifth
Anniversary Date of the Effective Date. 
  
 7. SPECIAL
TERMINATION PROVISIONS. Notwithstanding the provisions of Section 6 of this Agreement, this Agreement shall terminate upon the occurrence of any of the following events: 
  
 (a) the death of Employee; 
  

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 (b) the giving of written notice from Employer to Employee of the termination of this
Agreement upon the Complete Disability of Employee; 
  
 (c) the giving of written notice by Employer to Employee of the termination of this Agreement upon the discharge of Employee for Cause; 
  
 (d) the giving of written notice by Employer to Employee of the termination of this Agreement following a denial or revocation of
Employee’s License (as defined in Subparagraph 9(b) of this Agreement). 
  
 (e) the giving of written notice by Employer to Employee of the termination of this Agreement without Cause, provided, however, that, within ten (10) calendar days after such notice,
Employer must tender the Separation Payment to Employee; 
  
 (f) the giving of written notice by Employee to Employer upon a material breach of this Agreement by Employer, which material breach remains uncured for a period of thirty (30) days after the giving of such
notice, provided, however, that, within ten (10) days after the expiration of such cure period without the cure having been effected, Employer must tender the Separation Payment to Employee; or 

 
 (g) at Employee’s sole election in writing as
provided in Paragraph 17 of this Agreement, after both a Change of Control and as a result of Good Reason, provided, however, that, within ten (10) calendar days after Employer’s receipt of Employee’s
written election, Employer must tender the Separation Payment to Employee. 
  
 In
the event of a termination of this Agreement pursuant to the provisions of Subparagraph 7(a), (b), (c) or (d), Employer shall not be required to make any payments to Employee other than payment of Base Salary and vacation pay accrued but unpaid
through the termination date. In the event of a termination of this Agreement pursuant to the provisions of Subparagraph (e), (f) or (g), Employee will also be entitled to receive health benefits coverage for Employee and Employee’s dependents
under the same plan(s) or arrangement(s) under which Employee was covered immediately before Employee’s termination, or plan(s) established or arrangement(s) provided by Employer or any of its Affiliates thereafter. Such health benefits
coverage shall be paid for by Employer to the same extent as if Employee were still employed by Employer, and Employee will be required to make such payments as Employee would be required to make if Employee were still employed by Employer. The
health benefits provided under this Paragraph 7 shall continue until the earlier of (x) the expiration of the period for which the Separation Payment is paid, (y) the date Employee becomes covered under any other group health plan not maintained by
Employer or any of its Affiliates; provided, however, that if such other group health plan excludes any pre-existing condition that Employee or Employee’s dependents may have when coverage under such group health
plan would otherwise begin, coverage under this Paragraph 7 shall continue (but not beyond the period 

  

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described in clause (x) of this sentence) with respect to such pre-existing condition until such exclusion under such other group health plan lapses or
expires. In the event Employee is required to make an election under Sections 601 through 607 of the Employee Retirement Income Security Act of 1974, as amended (commonly known as COBRA) to qualify for the health benefits described in this Paragraph
7, the obligations of Employer and its Affiliates under this Paragraph 7 shall be conditioned upon Employee’s timely making such an election. In the event of a termination of this Agreement pursuant to any of the provisions of this Paragraph 7,
Employee shall not be entitled to any benefits pursuant to any severance plan in effect by Employer or any of Employer’s Affiliates. 
  
 8. COMPENSATION TO EMPLOYEE. For and in complete consideration of Employee’s full and faithful performance of Employee’s
duties under this Agreement, Employer hereby covenants and agrees to pay to Employee, and Employee hereby covenants and agrees to accept from Employer, the following items of compensation: 
  
 (a) Base Salary. Employer hereby covenants and
agrees to pay to Employee, and Employee hereby covenants and agrees to accept from Employer, a base salary at the rate of Two Hundred Thousand Dollars ($200,000.00) per annum during the Term, payable in such installments as shall be convenient to
Employer (the “Base Salary”). Such Base Salary shall be subject to periodic merit reviews and may be increased, but not decreased, as a result of any such review. Such Base Salary shall be exclusive of and in addition to any other benefits
which Employer, in its sole discretion, may make available to Employee, including, but not limited to, any discretionary bonus, profit sharing plan, pension plan, retirement plan, disability or life insurance plan, medical and/or hospitalization
plan, or any and all other benefit plan which may be in effect during the Term. 
  
 (b) Bonus Compensation. Employee also will be eligible to receive a bonus at such times and in such amounts as Employer, in
its sole, exclusive and unreviewable discretion, may determine. The goals, if any, that Employee must meet or exceed in order to become eligible for bonus compensation greater than the guaranteed minimum shall be determined by Employer in
Employer’s sole discretion and disclosed to Employee before or at the commencement of the period for which such goals may apply. 
  
 (c) Employee Benefit Plans. Employer hereby covenants and agrees that it shall include Employee, if otherwise eligible, in
any profit sharing plan, pension plan, executive stock option plan, retirement plan, disability or life insurance plan, medical and/or hospitalization plan, and/or any and all other benefit plans that may be placed in effect by Employer or any of
its Affiliates for the benefit of Employer’s eexecutives during the Term. Nothing in this Agreement shall limit Employer’s or its Affiliates’ ability to adopt, amend or terminate any benefit plan at any time. 
  

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 (d) Expense Reimbursement. During the Term and provided the same are
authorized in advance by Employer, Employer shall either pay directly or reimburse Employee for Employee’s reasonable expenses incurred for the benefit of Employer in accordance with Employer’s general policy regarding expense
reimbursement, as the same may be modified from time to time. Prior to such payment or reimbursement, Employee shall provide Employer with sufficient detailed invoices of such expenses as may be required by Employer’s policy. 
  
 (e) Vacations and Holidays. Commencing as of
the Effective Date, Employee shall be entitled to annual paid vacation and paid holidays (or, at Employer’s option, an equivalent number of paid days off) in accordance with Employer’s respective standard policies. 
  
 (f) Withholdings. All compensation provided to
Employee by Employer under this Section 8 shall be subject to applicable withholdings for federal, state or local income or other taxes, Social Security Tax, Medicare Tax, State Unemployment Insurance, State Disability Insurance, charitable
contributions and the like. 
  
 9. LICENSING
REQUIREMENTS. 
  
 (a) Employer
and Employee hereby covenant and agree that this Agreement may be subject to the approval of one or more gaming regulatory authorities (the “Authorities”) pursuant to the provisions of the relevant gaming regulatory statutes (the
“Gaming Acts”) and the regulations promulgated thereunder (the “Gaming Regulations”). Employer and Employee hereby covenant and agree to use their best efforts to obtain any and all approvals required by the Gaming
Acts and/or Gaming Regulations. In the event that (i) an approval of this Agreement by the Authorities is required for Employee to carry out his duties and responsibilities set forth in Section 4 of this Agreement, (ii) Employer and Employee have
used their best efforts to obtain such approval, and (iii) this Agreement is not so approved by the Authorities, then this Agreement shall immediately terminate and shall be null and void. 
  
 (b) If applicable, Employer and Employee hereby covenant and
agree that, in order for Employee to discharge the duties required under this Agreement, Employee must apply for or hold a license, registration, permit or other approval (the “License”) as issued by the Authorities pursuant to the
terms of the relevant Gaming Act and as otherwise required by this Agreement. In the event Employee fails to apply for and secure, or the Authorities refuse to issue or renew Employee’s License, Employee, at Employer’s sole cost and
expense, shall promptly defend such action and shall take such reasonable steps as may be required to either remove the objections or secure or reinstate the Authorities’ approval, respectively. The 

  

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foregoing notwithstanding, if the source of the objections or the Authorities’ refusal to renew or maintain Employee’s License arise as a result of
any of the events described in Subsection 1(c) of this Agreement, then Employer’s obligations under this Section 9 also shall not be operative and Employee shall promptly reimburse Employer upon demand for any expenses incurred by Employer
pursuant to this Section 9. 
  
 (c) Employer and
Employee hereby covenant and agree that the provisions of this Section 9 shall apply in the event Employee’s duties require that Employee also be licensed by governmental agencies other than the Authorities. 
  
 10. CONFIDENTIALITY. Employee hereby warrants, covenants
and agrees that, without the prior express written approval of Employer, Employee shall hold in the strictest confidence, and shall not disclose to any person, firm, corporation or other entity, any and all of Employer’s confidential data,
including but not limited to (a) information, drawings, sketches, plans or other documents concerning Employer’s business or development plans, customers or suppliers or those of Employer’s Affiliates; (b) Employer’s or its
Affiliates’ development, design, construction or sales and marketing methods or techniques; or (c) Employer’s trade secrets and other “know-how” or information not of a public nature, regardless of how such information came to
the custody of Employee. For purposes of this Agreement, such confidential information shall include, but not be limited to, information, including a formula, pattern, compilation, program, device, method, technique or process, that (x) derives
independent economic value, present or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use and (y) is the subject of efforts
that are reasonable under the circumstances to maintain its secrecy. The warranty, covenant and agreement set forth in this Section 10 shall not expire, shall survive this Agreement, and shall be binding upon Employee without regard to the passage
of time or other events. 
  
 11. RESTRICTIVE
COVENANT/NO SOLICITATION. 
  
 (a) Employee hereby covenants and agrees that, during the Term or for such longer period so long as Employer pays to Employee the compensation set forth in Subsection 8(a) of this Agreement, Employee shall not directly or indirectly, either
as a principal, agent, employee, employer, consultant, partner, member of a limited liability company, shareholder of a closely held corporation, or shareholder in excess of two (2%) per cent of a publicly traded corporation, corporate officer or
director, manager, or in any other individual or representative capacity, engage or otherwise participate in any manner or fashion in any business that is in competition in any manner whatsoever with the principal business activity of Employer or
Employer’s Affiliates, in or about any market in which Employer or Employer’s Affiliates have or plan to have hotel or gaming operations. Employee hereby further covenants and agrees that the restrictive covenant 

  

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contained in this Section 11 is reasonable as to duration, terms and geographical area and that the same protects the legitimate interests of Employer,
imposes no undue hardship on Employee, and is not injurious to the public. 
  
 (b) Employee hereby further covenants and agrees that, during the Term and for a period of one (1) year following the expiration of the Term, Employee shall not directly or indirectly, and Employee shall not suffer
others to, solicit or attempt to solicit for employment any management level employee of Employer or Employer’s Affiliates with or on behalf of any business that is in competition in any manner whatsoever with the principal business activity of
Employer or Employer’s Affiliates, in or about any market in which Employer or Employer’s Affiliates have or plan hotel or gaming operations. 
  
 12. BEST EVIDENCE. This Agreement shall be executed in original and “Xerox” or photostatic copies and each copy bearing
original signatures in ink shall be deemed an original. 
  
 13. SUCCESSION. This Agreement shall be binding upon and inure to the benefit of Employer and Employee and their respective successors and assigns. 
  
 14. ASSIGNMENT. Employee shall not assign this Agreement or delegate his duties hereunder without the
express written prior consent of Employer thereto. Any purported assignment by Employee in violation of this Section 14 shall be null and void and of no force or effect. Employer shall have the right to assign this Agreement freely. 
  
 15. AMENDMENT OR MODIFICATION. This Agreement may not be
amended, modified, changed or altered except by a writing signed by both Employer and Employee. 
  
 16. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada, without
regard to conflicts of law principles. 
  
 17.
NOTICES. Any and all notices required under this Agreement shall be in writing and shall be either hand-delivered or mailed, certified mail, return receipt requested, addressed to: 
  

			
	 TO EMPLOYER:
	  	Wynn Resorts, Limited
	 	  	3145 Las Vegas Boulevard South
	 	  	Las Vegas, Nevada 89109
	 	  	Attn: President
		
	 WITH A COPY
	  	Wynn Resorts, Limited
	 THAT SHALL NOT BE
	  	3145 Las Vegas Boulevard South
	 NOTICE TO:
	  	Las Vegas, Nevada 89109
	 	  	Attn: Legal Department

  

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	 TO EMPLOYEE:
	  	James E. Pettis
	 	  	1216 Strong Drive
	 	  	Las Vegas, Nevada 89102

  
 All notices hand-delivered shall be
deemed delivered as of the date actually delivered. All notices mailed shall be deemed delivered as of three (3) business days after the date postmarked. Any changes in any of the addresses listed herein shall be made by notice as provided in this
Section 17. 
  
 18. INTERPRETATION. The
preamble recitals to this Agreement are incorporated into and made a part of this Agreement; titles of paragraphs are for convenience only and are not to be considered a part of this Agreement. 
  
 19. SEVERABILITY. In the event any one or more
provisions of this Agreement is declared judicially void or otherwise unenforceable, the remainder of this Agreement shall survive and such provision(s) shall be deemed modified or amended so as to fulfill the intent of the parties hereto.

  
 20. DISPUTE RESOLUTION. Except for
equitable actions seeking to enforce the provisions of Sections 10 and 11 of this Agreement, jurisdiction and venue for which is hereby granted to the court of general trial jurisdiction in Las Vegas, Nevada, any and all claims, disputes, or
controversies arising between the parties hereto regarding any of the terms of this Agreement or the breach thereof, on the written demand of either of the parties hereto, shall be submitted to and be determined by final and binding arbitration held
in Las Vegas, Nevada, in accordance with Employer’s or Employer’s Affiliates’ arbitration policy governing employment disputes, or, in the absence of any such policy, as conducted by and in accordance with the labor arbitration rules
of the American Arbitration Association. This agreement to arbitrate shall be specifically enforceable in any court of competent jurisdiction. 
  
 21. WAIVER. None of the terms of this Agreement, including this Section 21, or any term, right or remedy hereunder shall be deemed
waived unless such waiver is in writing and signed by the party to be charged therewith and in no event by reason of any failure to assert or delay in asserting any such term, right or remedy or similar term, right or remedy hereunder. 

 
 22. PAROL. This
Agreement constitutes the entire agreement between Employer and Employee with respect to the subject matter hereto and this Agreement supersedes any prior understandings, agreements, undertakings or severance policies or plans by and between
Employer or Employer’s Affiliates, on the one side, and Employee, on the other side, with respect to the subject matter hereof or Employee’s employment with Employer or Employer’s Affiliates. 
  

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 IN WITNESS WHEREOF AND INTENDING TO BE LEGALLY BOUND THEREBY, the parties hereto have
executed and delivered this Agreement as of the year and date first above written. 
  

					
	WYNN LAS VEGAS, LLC, dba Le Rêve	 	EMPLOYEE
			
	 By:
	 	 /s/ Marc Schorr

	 	 /s/ James Pettis


	 	 	 Marc Schorr
	 	 James E. Pettis

	 	 	 President
	 	 

  

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 EXHIBIT 1 
  

Indemnification and Gross-Up for Excise Taxes 
  
 (a) Employer shall indemnify and hold Employee harmless from and against any and all liabilities, costs and expenses (including, without limitation,
attorney’s fees and costs) which Employee may incur as a result of the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”) or any similar provision of state or local income tax law (the
“Excise Tax”), to the end that Employee shall be placed in the same tax position with respect to the Severance Payment under Employee’s Employment Agreement and all other payments from Employer to Employee in the nature of
compensation as Employee would have been in if the Excise Tax had never been enacted. In furtherance of such indemnification, Employer shall pay to Employee a payment (the “Gross-Up Payment”) in an amount such that, after payment by
Employee of all taxes, including income taxes and the Excise Tax imposed on the Gross-Up Payment and any interest or penalties (other than interest and penalties imposed by reason of Employee’s failure to file timely tax returns or to pay taxes
shown due on such returns and any tax liability, including interest and penalties, unrelated to the Excise Tax or the Gross-Up Amount), Employee shall be placed in the same tax position with respect to the Severance Payment under this Plan and all
other payments from Employer to Employee in the nature of compensation as Employee would have been in if the Excise Tax had never been enacted. When Employer pays Employee’s Severance Payment, it shall also pay to Employee a Gross-Up Payment
for the Severance Payment and any other payments in the nature of compensation that Employer determines are “excess parachute payments” under Section 280G(b)(1) of the Code (“Excess Parachute Payments”). If, through a
determination of the Internal Revenue Service or any state or local taxing authority (a “Taxing Authority”), or a judgment of any court, Employee becomes liable for an amount of Excise Tax not covered by the Gross-Up Payment payable
pursuant to the preceding sentence, Employer shall pay Employee an additional Gross-Up Payment to make Employee whole for such additional Excise Tax; provided, however, that, pursuant to Section 2.3(c), Employer shall have the right to require
Employee to protest, contest, or appeal any such determination or judgment. For purposes of this Section 2.3, any amount that Employer is required to withhold under Sections 3402 or 4999 of the Code or under any other provision of law shall be
deemed to have been paid to Employee. 
  
 (b) Upon payment to
Employee of a Gross-Up Payment, Employer shall provide Employee with a written statement showing Employer’s computation of such Gross-Up Payment and the Excess Parachute Payments and Excise Tax to which it relates, and setting forth
Employer’s determination of the amount of gross income Employee is required to recognize as a result of such payments and Employee’s liability for the Excise Tax. Employee shall cause his or her federal, state, and local income tax returns
for the period in which Employee receive such Gross-Up Payment to be prepared and filed in accordance with 

  

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such statement, and, upon such filing, Employee shall certify in writing to Employer that such returns have been so prepared and filed. Notwithstanding the
provisions of Section 2.3(a), Employer shall not be obligated to indemnify Employee from and against any tax liability, cost or expense (including, without limitation, any liability for the Excise Tax or attorney’s fees or costs) to the extent
such tax liability, cost or expense is attributable to your failure to comply with the provisions of this Section 2.3(b). 
  
 (c) If any controversy arises between Employee and a Taxing Authority with respect to the treatment on any return of the Gross-Up Amount, or of any
payment Employee receives from Employer as an Excess Parachute Payment, or with respect to any return which a Taxing Authority asserts should show an Excess Parachute Payment, including, without limitation, any audit, protest to an appeals authority
of a Taxing Authority or litigation (a “Controversy”), Employer shall have the right to participate with Employee in the handling of such Controversy. Employer shall have the right, solely with respect to a Controversy, to direct Employee
to protest or contest any proposed adjustment or deficiency, initiate an appeals procedure within any Taxing Authority, commence any judicial proceeding, make any settlement agreement, or file a claim for refund of tax, and Employee shall not take
any of such steps without the prior written approval of Employer, which Employer shall not unreasonably withhold. If Employer so elects, Employee shall be represented in any Controversy by attorneys, accountants, and other advisors selected by
Employer, and Employer shall pay the fees, costs and expenses of such attorneys, accountants, or advisors, and any tax liability Employee may incur as a result of such payment. Employee shall promptly notify Employer of any communication with a
Taxing Authority, and Employee shall promptly furnish to Employer copies of any written correspondence, notices, or documents received from a Taxing Authority relating to a Controversy. Employee shall cooperate fully with Employer in the handling of
any Controversy by furnishing Employer any information or documentation relating to or bearing upon the Controversy; provided, however, that Employee shall not be obligated to furnish to Employer copies of any portion of his or her tax
returns which do not bear upon, and are not affected by, the Controversy. 
  
 (d) Employee shall pay over to Employer, within ten (10) days after receipt thereof, any refund Employee receive from any Taxing Authority of all or any portion of the Gross-Up Payment or the Excise Tax, together with
any interest Employee receive from such Taxing Authority on such refund. For purposes of this Section 2.3(d), a reduction in Employee’s tax liability attributable to the previous payment of the Gross-Up Amount or the Excise Tax shall be deemed
to be a refund. If Employee would have received a refund of all or any portion of the Gross-Up Payment or the Excise Tax, except that a Taxing Authority offset the amount of such refund against other tax liabilities, interest, or penalties, Employee
shall pay the amount of such offset over to Employer, together with the amount of interest Employee would have received from the Taxing Authority if such offset had been an actual refund, within ten (10) days after receipt of notice from the Taxing
Authority of such offset. 
  

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