exv10w3w33






Exhibit 10.3(33)




EMPLOYMENT AGREEMENT



This
Employment Agreement (this “Agreement”) is entered into as of August 13, 2009 by and
between MGM MIRAGE (“Employer”, “we” or “us”), and William M. Scott (“Employee” or “you”).





	1.	 	Employment. We hereby employ you, and you hereby accept employment by us, as Senior Vice
President and Deputy General Counsel to perform such executive, managerial or administrative
duties as we may specify from time to time during the Specified Term (as defined in Section
2). In construing the provisions of this Agreement, the term “Employer”, “we” or
“us” includes all of our subsidiary, parent and affiliated companies, but specifically
excludes Tracinda Corporation, its stockholder or stockholders, and its subsidiaries.
	 
	2.	 	Term. The term of your employment under this Agreement
commences on August 13, 2009 and it
terminates on September 15, 2013 (the “Specified Term”). Unless a new written employment
agreement is executed by the parties, upon the expiration of the Specified Term, all terms and
conditions of this Agreement will continue, except that the new Specified Term of the
Agreement shall be three (3) months, which shall renew for successive three (3) month periods
on each successive three (3) month anniversary, if the Agreement is not otherwise terminated
pursuant to its terms.
	 
	3.	 	Compensation. During the period commencing
August 13, 2009 through July 31, 2010, we shall pay
you a minimum annual salary at the rate of $400,000 per year. During the period commencing
August 1, 2010 through July 31, 2011, we shall pay you a minimum annual salary of $420,000.
During the period commencing August 1, 2011 through
July 31, 2012, we shall pay you a minimum
annual salary of $440,000. During the remainder of the Specified Term, we shall pay you a
minimum annual salary at the rate of $460,000 per year. Annual salary shall be payable in
arrears at such frequencies and times as we pay our other employees. You are also eligible to
receive generally applicable fringe benefits commensurate with our employees in positions
comparable to yours. We will also reimburse you for all reasonable business and travel
expenses you incur in performing your duties under this Agreement, payable in accordance with
our customary practices and policies, as we may modify and amend them from time to time. Your
performance may be reviewed periodically. You are eligible for consideration for a
discretionary raise, annual bonus, promotion, and/or participation in discretionary benefit
plans; provided, however, whether and to what extent you will be granted any of the above will
be determined by us in our sole and absolute discretion. In connection with your
transition, we will make a lump sum one-time payment to you of $13,150 (subject to applicable
withholdings) which shall be in addition to our customary relocation benefits.
	 
	4.	 	Extent of Services. You agree that your employment by us is full time and exclusive. You
further agree to perform your duties in a competent, trustworthy
and businesslike manner. You agree that during the Specified Term, except as specified on
Exhibit C, you will not render any services of any kind (whether or not for compensation)
for any person or entity other than us, and that you will not engage in any other business
activity (whether or not for compensation) that is similar to or conflicts with your duties
under this Agreement, without the approval




 









 






	 	 	of the Board of Directors of MGM MIRAGE
or the person or persons designated by the Board of Directors to determine such matters.
	 
	5.	 	Policies and Procedures. You agree and acknowledge that you are bound by our policies and
procedures as they may be modified and amended by us from time to time. In the event the terms
in this Agreement conflict with our policies and procedures, the terms of this Agreement shall
take precedence. As you are aware, problem gaming and underage gambling can have adverse
effects on individuals and the gaming industry as a whole. You acknowledge that you have read
and are familiar with our policies, procedures and manuals and agree to abide by them. Because
these matters are of such importance to us, you specifically confirm that you are familiar
with and will comply with our policies of prohibiting underage gaming, supporting programs to
treat compulsive gambling, and promoting diversity in all aspects of our business.
	 
	6.	 	Licensing Requirements. You acknowledge that we are engaged in a business that is or may be
subject to and exists because of privileged licenses issued by governmental authorities in
Nevada, New Jersey, Michigan, Mississippi, Illinois, Macau S.A.R., and other jurisdictions in
which we are engaged in a gaming business or where we have applied to (or during the Specified
Term may apply to) engage in a gaming business. You shall apply for and obtain any license,
qualification, clearance or other similar approval which we or any regulatory authority which
has jurisdiction over us requests or requires that you obtain.
	 
	7.	 	Failure to Satisfy Licensing Requirement. We have the right to terminate your employment
under Section 10.1 of this Agreement if: (i) you fail to satisfy any licensing requirement
referred to in Section 6 above; (ii) we are directed to cease business with you by any
governmental authority referred to in Section 6 above; (iii) we determine, in our
sole and exclusive judgment, that you were, are or might be involved in, or are about to be
involved in, any activity, relationship(s) or circumstance which could or does jeopardize our
business, reputation or such licenses; or (iv) any of our licenses is threatened to
be, or is, denied, curtailed, suspended or revoked as a result of your employment by us
or as a result of your actions.
	 
	8.	 	Restrictive Covenants






	 	8.1	 	Competition. You acknowledge that, in the course of performing your responsibilities
under this Agreement, you will form relationships and become acquainted with Confidential
Information. You further acknowledge that such relationships and the Confidential
Information are valuable to us, and the restrictions on your future employment contained in
this Agreement, if any, are reasonably necessary in order for us to remain competitive in
our various businesses. In consideration of this Agreement and the compensation payable to
you
under this Agreement, and in recognition of our heightened need for protection from abuse
of relationships formed or Confidential Information garnered before and during the
Specified Term of this Agreement, you covenant and agree that, except as otherwise
explicitly provided in Section 10 of this Agreement, if you are not employed by us for the
entire Specified Term, then during the entire Restrictive Period you shall not directly or
indirectly be employed by, provide consultation or other services to, engage in,
participate in or otherwise be connected in any way with any Competitor. The terms




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	 	 	 	“Confidential Information,” “Restrictive Period” and “Competitor” are
defined in Section 22. Your obligations during the Specified Term and Restrictive
Period under this Section 8.1 include but are not limited to the following:






	 	8.1.1	 	You will not make known to any third party the names and addresses of any of
our customers, or any other information pertaining to those customers.
	 
	 	8.1.2	 	You will not call on, solicit and/or take away, or attempt to call on,
solicit and/or take away, any of our customers, either for your own account or for
any third party.
	 
	 	8.1.3	 	You will not call on, solicit and/or take away, any of our potential or
prospective customers, on whom you called or with whom you became acquainted
during employment by us (either before or during the Specified Term), either for
your own account or for any third party.
	 
	 	8.1.4	 	You will not approach or solicit any of our employees with a view towards
enticing such employee to leave our employ to work for you or for any third party,
or hire any of our employees, without our prior written consent, which we may give
or withhold in our sole discretion.






	 	8.2	 	Confidentiality. You further covenant and agree that you will not at any time during or
after the Specified Term, without our prior written consent, disclose to any other person
or business entities any Confidential Information or utilize any Confidential Information
in any way, including communications with or contact with any of our customers or other
persons or entities with whom we do business, other than in connection with your employment
hereunder.
	 
	 	8.3	 	Employer’s Property. You hereby confirm that the Confidential Information constitutes
our sole and exclusive property (regardless of whether you possessed or claim to have
possessed any of such Confidential Information prior to the date hereof). You agree that
upon termination of your active employment with us, you will promptly return to us all
notes, notebooks, memoranda, computer disks, and any other similar repositories of
Confidential Information (regardless of whether you possessed such Confidential Information
prior to the date hereof) containing or relating in any way to the Confidential Information,
including but not limited to the documents referred to on Exhibit A hereto.
Such repositories of Confidential Information also include but are not limited
to any so-called personal files or other personal data compilations in any form,
which in any manner contain any Confidential Information.
	 
	 	8.4	 	Notice to Employer. You agree to notify us immediately of any other persons or entities
for whom you work or provide services during the Specified Term or within the Restrictive
Period. You further agree to promptly notify us, during the Specified Term, of any contacts
made by




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	 	 	 	any gaming licensee which concern or relate to an offer to employ you or for you to
provide consulting or other services.






	9.	 	Representation and Additional Agreements. You hereby represent, warrant and agree that:






	 	9.1	 	The covenants and agreements contained in Sections 4 and 8 above are reasonable in
their geographic scope, duration and content; our agreement to employ you and a portion of
the compensation and consideration we have agreed to pay you under Section 3 of this
Agreement, are in partial consideration for such covenants and agreements; you agree that
you will not raise any issue of the reasonableness of the geographic scope, duration or
content of such covenants and agreements in any proceeding to enforce such covenants and
agreements, and such covenants and agreements shall survive the termination of this
Agreement;
	 
	 	9.2	 	The enforcement of any remedy under this Agreement will not prevent you from earning a
livelihood, because your past work history and abilities are such that you can reasonably
expect to find work in other areas and lines of business;
	 
	 	9.3	 	The covenants and agreements stated in Sections 4, 6, 7 and 8 of this Agreement are
essential for our reasonable protection;
	 
	 	9.4	 	We have reasonably relied on your representations, warranties and agreements, including
those set forth in this Section 9; and
	 
	 	9.5	 	You have the full right to enter into this Agreement and by entering into and
performance of this Agreement, you will not violate or conflict with any arrangements or
agreements you may have with any other person or entity.
	 
	 	9.6	 	You agree that in the event of your breach of any covenants and agreements set forth in
Sections 4 and 8 above, we may seek to enforce such covenants and agreements through any
equitable remedy, including specific performance or injunction, without waiving any claim
for damages. In any such event, you waive any claim that we have an adequate
remedy at law.






	10.	 	Termination.






	 	10.1	 	Employer’s Good Cause Termination. We have the right to terminate this Agreement at
any time during the Specified Term hereof for Employer’s Good
Cause (which term is defined in Section 22). Upon any such termination, we will have no
further liability or obligations whatsoever to you under this Agreement except as provided
under Sections 10.1.1, 10.1.2, and 10.1.3 below.






	 	10.1.1	 	In the event Employer’s Good Cause termination is the result of
your death during the Specified Term, your beneficiary (as designated by you on our
benefit records) will be entitled to receive




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	 	 	 	your salary for a three (3)
month period following your death, such amount to be paid at regular payroll
intervals.
	 
	 	10.1.2	 	In the event Employer’s Good Cause termination is the result of
your Disability (which term is defined in Section 22), we will pay you (or your
beneficiary in the event of your death during the period in which payments are being
made) an amount equal to your salary for three (3) months following your
termination, such amount to be paid at regular payroll intervals, net of payments
received by you from any short term disability policy which is either self-insured
by us or the premiums of which were paid by us (and not charged as compensation to
you).
	 
	 	10.1.3	 	You or your beneficiary will be entitled to exercise your vested
but unexercised stock options to acquire Company’s stock, stock appreciation
rights (“SAR”) or other stock-based compensation (“Other Right”) as of the date
of termination, if any, upon compliance with all of the terms and conditions
required to exercise such options, SARs or Other Rights.






	 	10.2	 	Employer’s No Cause Termination. We have the right to terminate this Agreement on
written notice to you in our sole discretion for any cause we deem sufficient or for no
cause, at any time during the Specified Term.
Upon such termination, our sole liability to you shall be as follows:






	 	10.2.1	 	We will treat you as an inactive employee through the Specified Term and (i)
pay your salary for the period remaining in the Specified Term, and (ii) maintain
you as a participant in all health and insurance programs in which you and your
dependents, if applicable, are then participating (as such programs may be changed
by us from time to time for its employees in positions comparable to yours and
subject to satisfying the eligibility requirements of such programs to the extent
imposed by third party providers) through the first to occur of (x) the end of the
Specified Term or (y) the date on which you become eligible to receive health
and/or insurance benefits, as applicable from a new employer. However, you would
not be eligible for flex or vacation time, discretionary bonus or new grants of
stock options, SARs or Other Rights, but (subject to Section 10.5.1 of this
Agreement, if applicable) you would continue to vest previously granted stock
options, SARs or
Other Rights, if any, for the shorter of twelve (12) months from the date you are
placed in an inactive status or the remaining period of the Specified Term if you
remain in inactive status for such period; and
	 
	 	10.2.2	 	You will be entitled to exercise your vested but unexercised stock options
to acquire Company stock, SARs or Other Rights, if any, while you are on inactive
status and upon termination of your inactive status, upon your compliance with all
of the terms and conditions required to exercise such options, SARs or Other
Rights.






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	 	 	 	Upon any such termination, you will continue to be bound by the restrictions in
Section 8 above. Notwithstanding anything herein to the contrary, while you are in an
inactive status, you may be employed by or provide consultation services to a
non-Competitor, provided that we will be entitled to offset the compensation being paid
by us during the Specified Term by the compensation and/or consultant’s fees being paid
to you, and provided further, that we will not be required to continue to provide
benefits to the extent that you are entitled to receive benefits from a third party. In
addition, at any time after the end of the Restrictive Period, if you are in an inactive
status, you may notify us in writing that you desire to terminate your inactive status
(an “Employee Inactive Termination Notice”) and immediately thereafter we will have no
further liability or obligations to you, except under Section 10.2.2 above.
	 
	 	10.3	 	Employee’s Good Cause Termination. You may terminate this Agreement
for Employee’s Good Cause (which term is defined in Section 22). Prior
to any termination under this Section 10.3 being effective, you agree to
give us thirty (30) days’ advance written notice specifying the facts and
circumstances of our alleged breach. During such thirty (30) day period,
we may either cure the breach (in which case your notice will be
considered withdrawn and this Agreement will continue in full force and
effect) or declare that we dispute that Employee’s Good Cause exists, in
which case this Agreement will continue in full force until the dispute is
resolved in accordance with Section 12. In the event this Agreement is
terminated under this Section 10.3, you will be entitled to exercise your
vested but unexercised stock options to acquire Company stock, SARs or
Other Rights, if any, upon your compliance with all the terms and
conditions required to exercise such options, SARs or Other Rights, but
you will have no further claim against us arising out of such breach. In the
event of termination of this Agreement under Section 10.3, the restrictions
of Section 8.1 shall no longer apply.
	 
	 	10.4	 	Employee’s No Cause Termination. In the event you terminate your
employment under this Agreement without cause, we will have no further
liability or obligations whatsoever to you hereunder, except that you will
be entitled to exercise your vested but unexercised stock options to acquire
Company stock, SARs or Other Rights, if any, upon your compliance with
all the terms and conditions required to exercise such options, SARs or
Other Rights and all salary through the date of termination; provided,
however, that we will be entitled to all of our rights and remedies by
reason of such termination, including without limitation, the right to
enforce the covenants and agreements contained in Section 8 and our right
to recover damages.
	 
	 	10.5	 	Change in Control. In the event there is a Change in Control of Company
(which term is defined in Section 22), then:






	 	10.5.1	 	In the event this Agreement is terminated on or prior to the first anniversary of a
Change of Control: (a) by us under Section 10.1 by reason of your death or disability
or under Section 10.2 (Employer’s No Cause Termination) or (b) by you under Section
10.3 (Employee’s Good Cause Termination), then all of your options, SARs or Other
Rights, if any, which would have vested but for such termination during the shorter
of twelve (12)





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	 	 	 	months of the date of termination or the remainder of the Specified Term shall become
vested and immediately exercisable. However, so long as you remain employed by us after
a Change of Control, your options, SARs or Other Rights would not be accelerated, and if
your employment was terminated by us under Section 10.1 (Employer’s For Cause
Termination), other than by reason of death or disability, or by you under Section 10.4
(Employee’s No Cause Termination), your stock options, SARs or Other Rights would be
exercisable only to the extent they were exercisable at the date of termination.
	 
	 	10.5.2	 	If the Change of Control results from an exchange of outstanding common stock as a result
of which the common stock of MGM MIRAGE is no longer publicly held, then all your options to
purchase common stock of MGM MIRAGE, SARs and Other Rights will vest or be exercisable, as
applicable, at the time or times they would otherwise have vested or been exercisable for
the consideration (cash, stock or otherwise) which the holders of MGM MIRAGE common stock
received in such exchange. For example, if immediately prior to the Effective Date, you had
vested and exercisable options to acquire 5,000 shares of MGM MIRAGE’s common stock and the
exchange of stock is one share of common stock of MGM MIRAGE for two shares of common stock
of the acquiring entity, then your options will be converted into options to acquire, upon
payment of the exercise price, 10,000 shares of the acquiring entity’s common stock. If, in
addition, you had vested but unexercisable stock options, at the time those options became
exercisable, each option would, on exercise and payment of the exercise price, entitle you
to receive two shares of the acquiring company’s common stock.
	 
	 	10.5.3	 	If the Change of Control results from a sale of MGM MIRAGE’s outstanding common stock for
cash with the result that MGM MIRAGE’s common stock is no longer publicly held, then upon the
Change of Control, all of your options to purchase common stock of MGM MIRAGE, SARs and Other
Rights that are vested on the date of such Change in Control will be cashed out within 30
days after such Change in Control for an amount of cash equal to the difference between the
purchase price and the exercise price for the options, SARs or Other Rights. Any options,
SARs or Other Rights that are not vested on the date of the Change in Control will continue
to vest and become exercisable, as applicable, at the time or times they would otherwise have
vested or been exercisable, and within 30 days after any option, SAR or Other Right becomes
vested or exercisable, as applicable, it will be cashed out for an amount of cash equal to
the difference between the purchase price and the exercise price for the options, SARs or
Other Rights. For example, if immediately prior to the Change in Control, you have vested and
exercisable options to acquire 2,000 shares of MGM MIRAGE’s common stock at an exercise price
of $35, and the purchase price for MGM MIRAGE common stock was $40, then you would be
entitled to receive $10,000 in full satisfaction of those vested options (2,000 shares times
$5 per share). If, in





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	 	 	 	addition, you had unvested stock options with an exercise price of $35 at
the time of the Change in Control, at the time those options became
vested, you would be entitled to receive $5, net of applicable taxes, for
each option that became vested in full satisfaction of that option.






	 	10.6	 	Survival of Covenants. Notwithstanding anything contained in this
Agreement to the contrary, except as specifically provided in Section 10.3
with respect to the undertaking contained in Section 8.1, the covenants and
agreements contained in Section 8 will survive a termination of this
Agreement or of your employment, regardless of the reason for such
termination.
	 
	 	10.7	 	Acknowledgement Concerning Options, Stock Appreciation Rights and Other Rights. The parties acknowledge that the provisions contained
herein with respect to stock options, SARs or Other Rights are only
applicable to stock options, SARs or Other Rights, if any, which are
granted to you contemporaneously with, or after the date of this
Agreement. With respect to any other stock options, SARs or Other
Rights, if any, granted to you prior to the date of this Agreement, such
provisions herein shall not be applicable and the provisions originally
governing such stock options, SARs or Other Rights shall remain in full
force and effect and shall not be altered by this Agreement.






	11.	 	Arbitration. Except as otherwise provided in Exhibit B to this Agreement (which
constitutes a material provision of this Agreement) disputes relating to this
Agreement shall be resolved by arbitration pursuant to Exhibit B.
	 
	12.	 	Disputed Claim. In the event of any Disputed Claim (such term is defined in
Section 22), such Disputed Claim shall be resolved by arbitration pursuant to
Exhibit B. Unless and until the arbitration process for a Disputed Claim is finally
resolved in your favor and we thereafter fail to satisfy such award within thirty
(30) days of its entry, no Employee’s Good Cause exists for purposes of your
termination rights pursuant to Section 10.3 with respect to such Disputed Claim.
Nothing herein shall preclude or prohibit us from invoking the provisions of
Section 10.2, or of our seeking or obtaining injunctive or other equitable relief.
	 
	13.	 	Severability. If any provision hereof is unenforceable, illegal, or invalid for any
reason whatsoever, such fact shall not affect the remaining provisions of this
Agreement, except in the event a law or court decision, whether on application for
declaration, or preliminary injunction or upon final judgment, declares one or
more of the provisions of this Agreement that impose restrictions on you
unenforceable or invalid because of the geographic scope or time duration of such
restriction. In such event, you and we agree that the invalidated restrictions are
retroactively modified to provide for the maximum geographic scope and time
duration which would make such provisions enforceable and valid. This
Section 12 does not limit our rights to seek damages or such additional relief as
may be allowed by law and/or equity in respect to any breach by you of the
enforceable provisions of this Agreement.
	 
	14.	 	No Waiver of Breach or Remedies. No failure or delay on the part of you or us in
exercising any right, power or remedy hereunder shall operate as a waiver thereof
nor shall any single or partial exercise of any such right, power or remedy





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	 	 	preclude any other or further exercise thereof or the exercise of any other right, power or
remedy hereunder. The remedies herein provided are cumulative and not exclusive of any
remedies provided by law.
	 
	15.	 	Amendment or Modification. No amendment, modification, termination or
waiver of any provision of this Agreement shall be effective unless the same shall
be in writing and signed by you and a duly authorized member of our senior
management. No consent to any departure by you from any of the terms of this
Agreement shall be effective unless the same is signed by a duly authorized
member of our senior management. Any such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given.
	 
	16.	 	Governing Law. The laws of the State of Nevada shall govern the validity,
construction and interpretation of this Agreement, and except for Disputed
Claims, the courts of the State of Nevada shall have exclusive jurisdiction over
any claim with respect to this Agreement.
	 
	17.	 	Number and Gender. Where the context of this Agreement requires the singular
shall mean the plural and vice versa and references to males shall apply equally to
females and vice versa.
	 
	18.	 	Headings. The headings in this Agreement have been included solely for
convenience of reference and shall not be considered in the interpretation or
construction of this Agreement.
	 
	19.	 	Assignment. This Agreement is personal to you and may not be assigned by you.
	 
	20.	 	Successors and Assigns. This Agreement shall be binding upon our successors
and assigns.
	 
	21.	 	Prior Agreements. This Agreement shall supersede and replace any and all other
employment agreements which may have been entered into by and between the
parties. Any such prior employment agreements shall be of no force and effect.
	 
	22.	 	Certain Definitions. As used in this Agreement:
	 
	 	 	“Change of Control” shall mean the first to occur of any of the following events:






	 	(1)	 	Any “person” or “group” of persons (as such terms are used
in §13 and 14(d)(2) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”)), other than the Company’s principal stockholder as
reflected in the Company’s Proxy Statement dated March 29, 2002 (the
“Principal Stockholder”), the Principal Stockholder’s sole shareholder,
members of the immediate family, as well as the heirs and legatees, of the
Principal Stockholder’s sole shareholder and trusts or other entities for the
benefit of such persons or affiliates of such persons (as such term
“affiliates” is defined in the rules promulgated by the Securities and
Exchange Commission) (the “Principal Stockholder Group”), becomes the
beneficial owner (as that term is used in §13(d) of the Exchange





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	 	 	 	Act), directly or indirectly, of fifty percent (50%) or more of the Company’s
capital stock entitled to vote generally in the election of directors;
	 
	 	(2)	 	At any time, individuals who, at the date of this Agreement,
constitute the Board of Directors of the Company, and any new
director whose election by the Board or nomination for election by
the Company’s stockholders was approved by a vote of in excess
of seventy five percent (75%) by the directors then still in office
who either were directors at the beginning of the period or whose
election or nomination for election was previously so approved,
cease for any reason to constitute at least a majority of the Board;
	 
	 	(3)	 	Any consolidation or merger of the Company, other than a
consolidation or merger of the Company in which the holders of
the Stock immediately prior to the consolidation or merger hold
more than fifty percent (50%) of the Stock of the surviving
corporation immediately after the consolidation or merger;
	 
	 	(4)	 	Any liquidation or dissolution of the Company; or
	 
	 	(5)	 	The sale or transfer of all or substantially all of the assets of the
Company to parties that are not within a “controlled group of
corporations” (as defined in Internal Revenue Code §1563) in
which the Company is a member.






“Company” means MGM MIRAGE.




“Competitor” means any person, corporation, partnership, limited liability company or other entity
which is either directly, indirectly or through an affiliated company, engaged in or proposes to
engage in the development, ownership, operation or management of (i) gaming facilities; (ii) one
or more hotels; (iii) resort-style condominiums; (iv) convention or meeting facilities or (v) any
retail or shopping venue in excess of 100,000 square feet, and which activities are in the State
of Nevada or in or within a 150 mile radius of any other jurisdiction in which Employer is engaged
in any such activities or proposes to engage in any such activities”.




“Confidential Information” means all knowledge, know-how, information, devices or materials,
whether of a technical or financial nature, or otherwise relating in any manner to the business
affairs of Employer, including without limitation, names and addresses of Employer’s customers,
any and all other information concerning customers who utilize the goods, services or facilities
of any hotel and/or casino owned, operated or managed by Employer, Employer’s casino, hotel,
retail, entertainment and marketing practices, procedures, management policies, any trade secret,
including but not limited to any formula, pattern, compilation, program, device, method, technique
or process, that derives 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 any




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	 	 	economic value
from its disclosure or use, and any other information regarding the Employer which is not
already and generally known to the public, whether or not any of the foregoing is subject to
or protected by copyright, patent, trademark, registered or unregistered design, and whether
disclosed or communicated (in writing or orally) before, on or after the date of this
Agreement, by Employer to Employee. Confidential Information shall also specifically
include, without limitation, those documents and reports set forth on Exhibit A attached
hereto and incorporated herein by this reference.
	 
	 	 	“Disputed Claim” means that Employee maintains pursuant to Section 10.3 that Employer
has breached its duty to Employee and Employer has denied such breach.
	 
	 	 	“Employee’s Good Cause” shall mean (i) the failure of Employer to pay Employee any
compensation when due, save and except a Disputed Claim to compensation; or (ii) a material
reduction in the scope of duties or responsibilities of Employee or any reduction in
Employee’s salary save and except a Disputed Claim.
	 
	 	 	“Employee’s Physician” shall mean a licensed physician selected by Employee for
purposes of determining Employee’s disability pursuant to the terms of this Agreement.
	 
	 	 	“Employer’s Good Cause” shall mean:






	 	(1)	 	Employee’s death or disability; disability is hereby defined to include incapacity for
medical reasons certified to by Employer’s Physician which precludes the Employee from
performing the essential functions of Employee’s
duties hereunder for a substantially consecutive period of six (6) months or more. (In the
event Employee disagrees with the conclusions of Employer’s Physician, Employee (or
Employee’s representative) shall designate an Employee’s Physician, and Employer’s Physician
and Employee’s Physician shall jointly select a third physician, who shall make the
determination);
	 
	 	(2)	 	Employee’s failure to abide by Employer’s policies and procedures, misconduct,
insubordination, inattention to Employer’s business, failure to perform the duties required
of Employee up to the standards established by the Employer’s senior management, or other
material breach of this Agreement; or
	 
	 	(3)	 	Employee’s failure or inability to satisfy the requirements stated in Section 6 above.






	 	 	“Employer’s Physician” shall mean a licensed physician selected by Employer for
purposes of determining Employee’s disability pursuant to the terms of this Agreement.
	 
	 	 	“Restrictive Period” means the twelve (12) month period immediately following any
separation by Employee from active employment occurring during the Specified Term (or such
shorter period remaining in the Specified Term should Employee separate from active
employment with less than twelve (12) months remaining in the Specified Term).




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	23.	 	The parties acknowledge that neither Tracinda Corporation nor Kirk Kerkorian, individually or
collectively, is a party to this Agreement or any exhibit or agreement provided for herein.
Accordingly, the parties hereby agree that in the event (i) there is any alleged breach or default
by any party under this Agreement or any exhibit or agreement provided for herein, or (ii) any
party has any claim arising from or relating to any such agreement, no party, nor any party
claiming through it (to the extent permitted by applicable law), shall commence any proceedings or
otherwise seek to impose any liability whatsoever against Tracinda Corporation or Kirk Kerkorian by
reason of such alleged breach, default or claim.
	 
	24.	 	Section 409A.






	 	24.1	 	This Agreement is intended to comply with, or otherwise be exempt
from, Section 409A of Internal Revenue Code of 1986, as amended (the “Code”) and any
regulations and Treasury guidance promulgated thereunder (“Section 409A”). If we
determine in good faith that any provision of this Agreement would cause you to
incur an additional tax, penalty, or interest under Section 409A, the Compensation
Committee and you shall use reasonable efforts to reform such provision, if
possible, in a mutually agreeable fashion to maintain to the maximum extent
practicable the original intent of the applicable provision without violating the
provisions of Section 409A or causing the imposition of such additional tax,
penalty, or interest under Section
409A. The preceding provisions, however, shall not be construed as a guarantee by us
of any particular tax effect to you under this Agreement.
	 
	 	24.2	 	“Termination of employment,” or words of similar import, as used in this
Agreement means, for purposes of any payments under this Agreement that are
payments of deferred compensation subject to Section 409A, your “separation from
service” as defined in Section 409A.
	 
	 	24.3	 	For purposes of Section 409A, the right to a series of installment payments
under this Agreement shall be treated as a right to a series of separate payments.
	 
	 	24.4	 	With respect to any reimbursement of your expenses, or any provision of in-kind
benefits to you, as specified under this Agreement, such reimbursement of expenses
or provision of in-kind benefits shall be subject to the following conditions: (1)
the expenses eligible for reimbursement or the amount of in-kind benefits provided
in one taxable year shall not affect the expenses eligible for reimbursement or the
amount of in-kind benefits provided in any other taxable year, except for any
medical reimbursement arrangement providing for the reimbursement of expenses
referred to in Section 105(b) of the Code; (2) the




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	 	 	 	reimbursement of an eligible
expense shall be made pursuant to our reimbursement policy but no later than the end
of the year after the year in which such expense was incurred; and (3) the right to
reimbursement or in-kind benefits shall not be subject to liquidation or exchange
for another benefit.
	 
	 	24.5	 	If a payment obligation under this Agreement arises on account of your
separation from service while you are a “specified employee” (as defined under
Section 409A), any payment of “deferred compensation” (as defined under Treasury
Regulation Section 1.409A-l(b)(1), after giving effect to the exemptions in
Treasury Regulation Sections 1.409A-l(b)(3) through (b)(12)) that is scheduled to be
paid within six (6) months after such separation from service shall accrue without
interest and shall be paid within 15 days after the end of the six-month period
beginning on the date of such separation from service or, if earlier, within 15
days after the appointment of the personal representative or executor of your
estate following your death.





     IN WITNESS WHEREOF, Employer and Employee have entered into this Agreement
in Las Vegas, Nevada, as of the date first written above.



	 	 	 

	EMPLOYEE — WILLIAM M. SCOTT

	 	 
	 
	 	 
	/s/ William M. Scott
	 	 
	 
	 	 
	 
	 	 
	EMPLOYER — MGM MIRAGE
	 	 
	 
	 	 
	/s/ Gary N. Jacobs
	 	 
	 
	 	 
	Gary
N. Jacobs

President Corporate Strategy

General Counsel & Secretary
	 	 







13











 





EXHIBIT A




	 	 	 
	Name of Report	 	Generated By
	Including, but not limited to:
	 	 
	Arrival Report

	 	Room Reservation
	Departure Report

	 	Room Reservation
	Master Gaming Report

	 	Casino Audit
	Department Financial Statement

	 	Finance
	$5K Over High Action Play Report

	 	Casino Marketing
	$50K Over High Action Play Report

	 	Casino Marketing
	Collection Aging Report(s)

	 	Collection Department
	Accounts Receivable Aging

	 	Finance
	Marketing Reports

	 	Marketing
	Daily Player Action Report

	 	Casino Operations
	Daily Operating Report

	 	Slot Department
	Database Marketing Reports

	 	Database Marketing







14












 





EXHIBIT B — ARBITRATION



This Exhibit B sets forth the methods for resolving disputes should any arise under the Agreement,
and accordingly, this Exhibit B shall be considered to be a part of the Agreement.





	1.	 	Except for a claim by either Employee or Employer for injunctive relief where such would be
otherwise authorized by law, any controversy or claim arising out of or relating to the
Agreement, the breach hereof, or Employee’s employment by Employer, including without
limitation any claim involving the interpretation or application of the Agreement or wrongful
termination or discrimination claims, shall be submitted to binding arbitration in accordance
with the employment arbitration rules then in effect of the Judicial Arbitration and Mediation
Service (“JAMS”), to the extent not inconsistent with this paragraph. This Exhibit B covers
any claim Employee might have against any officer, director, employee, or agent of Employer,
or any of Employer’s subsidiaries, divisions, and affiliates, and all successors and assigns
of any of them. The promises by Employer and Employee to arbitrate differences, rather than
litigate them before courts or other bodies, provide consideration for each other, in addition
to other consideration provided under the Agreement.






	2.	 	Claims Subject to Arbitration. This Exhibit B covers all claims arising in the course of
Employee’s employment by Employer except for those claims specifically excluded from coverage
as set forth in paragraph 3 of this Exhibit B. It contemplates mandatory arbitration to the
fullest extent permitted by law. Only claims that are justiciable under applicable state or
federal law are covered by this Exhibit B. Such claims include any and all alleged violations
of any state or federal law whether common law, statutory, arising under regulation or
ordinance, or any other law, brought by any current or former employees. Such claims may
include, but are not limited to, claims for: wages or other compensation; breach of contract;
torts; work-related injury claims not covered under workers’ compensation laws; wrongful
discharge; and any and all unlawful employment discrimination and/or harassment claims.






	3.	 	Claims Not Subject to Arbitration. Claims under state workers’ compensation statutes or
unemployment compensation statutes are specifically excluded from this Exhibit B. Claims
pertaining to any of Employer’s employee welfare benefit and pension plans are excluded from
this Exhibit B. In the case of a denial of benefits under any of Employer’s employee welfare
benefit or pension plans, the filing and appeal procedures in those plans must be utilized.
Claims by Employer for injunctive or other relief for violations of non-competition and/or
confidentiality agreements are also specifically excluded from this Exhibit B.




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	4.	 	Non-Waiver of Substantive Rights. This Exhibit B does not waive any rights or remedies
available under applicable statutes or common law. However, it does waive Employee’s right to
pursue those rights and remedies in a judicial forum.
By signing the Agreement and the acknowledgment at the end of this Exhibit B, the
undersigned Employee voluntarily agrees to arbitrate his or her claims covered by this
Exhibit B.






	5.	 	Time Limit to Pursue Arbitration; Initiation: To ensure timely resolution of disputes,
Employee and Employer must initiate arbitration within the statute of limitations (deadline
for filing) provided for by applicable law pertaining to the claim, or one year, whichever is
shorter, except that the statute of limitations imposed by relevant
law shall solely apply in
circumstances where such statute of limitations cannot legally be shortened by private
agreement. The failure to initiate arbitration within this time limit will bar any such claim.
The parties understand that Employer and Employee are waiving any longer statutes of
limitations that would otherwise apply, and any aggrieved party is encouraged to give written
notice of any claim as soon as possible after the event(s) in dispute so that arbitration of
any differences may take place promptly. The parties agree that the aggrieved party must,
within the time frame provided by this Exhibit B, give written notice of a claim to the
President of Employer with a copy to MGM MIRAGE’s Executive Vice President and General
Counsel. Written notice shall identify and describe the nature of the claim, the supporting
facts and the relief or remedy sought.






	6.	 	Selecting an Arbitrator: This Exhibit B mandates Arbitration under the then current rules of
the Judicial Arbitration and Mediation Service (JAMS) regarding employment disputes. The
arbitrator shall be either a retired judge or an attorney experienced in employment law and
licensed to practice in the state in which arbitration is convened. The parties shall select
one arbitrator from among a list of three qualified neutral arbitrators provided by JAMS. If
the parties are unable to agree on the arbitrator, each party shall strike one name and the
remaining named arbitrator shall be selected.






	7.	 	Representation!Arbitration Rights and Procedures:






	 	a.	 	Employee may be represented by an attorney of his/her choice at his/her own expense.






	 	b.	 	The arbitrator shall apply the substantive law (and the law of remedies, if
applicable) of Nevada (without regard to its choice of law provisions) and/or federal
law when applicable. In all cases, this Exhibit B shall provide for the
broadest level of arbitration of claims between an employer and employee under Nevada
law. The arbitrator is without jurisdiction to apply any different substantive law or
law of remedies.




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	 	c.	 	The arbitrator shall have no authority to award non-economic
damages or punitive damages except where such relief is specifically authorized by an
applicable state or federal statute or common law. In such a situation, the
arbitrator shall specify in the award the specific statute or other basis under which
such relief is granted.






	 	d.	 	The applicable law with respect to privilege, including attorney-client privilege,
work product, and offers to compromise must be followed.






	 	e.	 	The parties shall have the right to conduct reasonable discovery, including written
and oral (deposition) discovery and to subpoena and/or request copies of records,
documents and other relevant discoverable information consistent with the procedural
rules of JAMS. The arbitrator shall decide disputes regarding the scope of discovery and
shall have authority to regulate the conduct of any hearing and/or trial proceeding. The
arbitrator shall have the right to entertain a motion to dismiss and/or motion for
summary judgment.






	 	f.	 	The parties shall exchange witness lists at least 30 days prior to the trial/hearing
procedure. The arbitrator shall have subpoena power so that either Employee or Employer
may summon witnesses. The arbitrator shall use the Federal Rules of Evidence. Both
parties have the right to file a posthearing brief. Any party, at its own expense, may
arrange for and pay the cost of a court reporter to provide a stenographic record of
the proceedings.






	 	g.	 	Any arbitration hearing or proceeding shall take place in private, not open to the
public, in Las Vegas, Nevada.






	8.	 	Arbitrator’s Award: The arbitrator shall issue a written decision containing the specific
issues raised by the parties, the specific findings of fact, and the specific conclusions of
law. The award shall be rendered promptly, typically within 30 days after conclusion of the
arbitration hearing, or the submission of post-hearing briefs if requested. The arbitrator may
not award any relief or remedy in excess of what a court could grant under applicable law. The
arbitrator’s decision is final and binding on both parties. Judgment upon an award rendered by
the arbitrator may be entered in any court having competent jurisdiction.






	 	a.	 	Either party may bring an action in any court of competent jurisdiction to compel
arbitration under this Exhibit B and to enforce an arbitration award.






	 	b.	 	In the event of any administrative or judicial action by any agency or
third party to adjudicate a claim on behalf of Employee which is subject to arbitration
under this Exhibit B, Employee hereby waives the right to




17









 












	 	 	 	participate in any
monetary or other recovery obtained by such agency or third party in any such action,
and Employee’s sole remedy with respect to any such claim shall be any award decreed by
an arbitrator pursuant to the provisions of this Exhibit B.






	9.	 	Fees and Expenses: Employer shall be responsible for paying any filing fee and the fees and
costs of the arbitrator; provided, however, that if Employee is the party initiating the
claim, Employee will contribute an amount equal to the filing fee to initiate a claim in the
court of general jurisdiction in the state in which Employee is (or was last) employed by
Employer. Employee and Employer shall each pay for their own expenses, attorney’s fees (a party’s responsibility
for his/her/its own attorney’s fees is only limited by any applicable statute specifically
providing that attorney’s fees may be awarded as a remedy), and costs and fees regarding
witness, photocopying and other preparation expenses. If any party prevails on a statutory
claim that affords the prevailing party attorney’s fees and costs, or if there is a written
agreement providing for attorney’s fees and/or costs, the arbitrator may award reasonable
attorney’s fees and/or costs to the prevailing party, applying the same standards a court
would apply under the law applicable to the claim(s).






	10.	 	The arbitration provisions of this Exhibit B shall survive the termination of Employee’s
employment with Employer and the expiration of the Agreement. These arbitration provisions can only be modified or revoked in a writing signed by
both parties and which expressly states an intent to modify or revoke the provisions of
this Exhibit B.






	11.	 	The arbitration provisions of this Exhibit B do not alter or affect the termination
provisions of this Agreement.






	12.	 	Capitalized terms not defined in this Exhibit B shall have the same definition as in the
Employment Agreement to which this is Exhibit B.






	13.	 	If any provision of this Exhibit B is adjudged to be void or otherwise unenforceable, in
whole or in part, such adjudication shall not affect the validity of the remainder of Exhibit B.
All other provisions shall remain in full force and effect.





ACKNOWLEDGMENT



BOTH PARTIES ACKNOWLEDGE THAT: THEY HAVE CAREFULLY READ THIS EXHIBIT B IN ITS ENTIRETY, THEY
UNDERSTAND ITS TERMS, EXHIBIT B CONSTITUTES A MATERIAL TERM AND CONDITION OF THE EMPLOYMENT
AGREEMENT BETWEEN THE PARTIES TO WHICH IT IS EXHIBIT B, AND THEY AGREE TO ABIDE BY ITS TERMS.





18









 







The parties also specifically acknowledge that by agreeing to the terms of this Exhibit
B, they are waiving the right to pursue claims covered by this Exhibit B in a judicial forum and
instead agree to arbitrate all such claims before an arbitrator without a court or jury. It
is specifically understood that this Exhibit B does not waive any rights or remedies which are
available under applicable state and federal statutes or common law. Both parties enter into this
Exhibit B voluntarily and not in reliance on any promises or representation by the other party
other than those contained in the Agreement or in this Exhibit B.



Employee further acknowledges that Employee has been given the opportunity to discuss this
Exhibit B with Employee’s private legal counsel and that Employee has availed himself/herself of
that opportunity to the extent Employee wishes to do so.






	 	 	 
	EMPLOYEE

	 	EMPLOYER
	 
	 	 
	/s/ William M. Scott

	 	/s/ Gary N. Jacobs
	 

	 	 
	WILLIAM M. SCOTT

	 	GARY N. JACOBS

PRESIDENT CORPORATE STRATEGY,
GENERAL COUNSEL & SECRETARY







19









 







EXHIBIT C

PERMITTED OUTSIDE ACTIVITIES



Through December 31, 2009, Employee will concurrently provide certain services to and remain
as a partner of Sheppard, Mullin, Richter & Hampton, LLP (the “Law Firm”) on a
transitional basis pursuant to a letter agreement of even date between the Law Firm, Employer and
Employee.





20