Document:

exhibit101promissorynote.htm - Generated by SEC Publisher for SEC Filing

Exhibit 10.1

REDEMPTION PRICE PROMISSORY NOTE

U.S.$1,936,442,631.36                                                                                                                                      February 18, 2012

WYNN RESORTS, LIMITED, a Nevada corporation (“Maker”), whose address is 3131 Las Vegas Boulevard South, Las Vegas, Nevada 89109, for value received, hereby promises to pay to the order of ARUZE USA, INC, a Nevada corporation (“Aruze”), whose address is 745 Grier Drive, Las Vegas, Nevada 89119, the principal amount of ONE BILLION NINE HUNDRED THIRTY-SIX MILLION FOUR HUNDRED FORTY-TWO THOUSAND SIX HUNDRED THIRTY-ONE AND 36/100 DOLLARS (U.S.$1,936,442,631.36), together with accrued interest thereon as hereinafter provided, subject to the terms and conditions set forth in this promissory note (this “Note”). 

1.                  Maturity Date.  Notwithstanding Section 5 hereof, the entire outstanding principal balance of this Note, together with all accrued and unpaid interest thereon as provided herein, shall be due and payable in full on the tenth (10th) anniversary of the date of this Note (the “Maturity Date”). 

2.                  Interest.  The balance of principal outstanding from time to time under this Note shall bear interest at the rate of two percent (2%) per annum (the “Interest Rate”), provided  that no interest shall accrue on any principal amount of this Note in respect of the day on which such principal amount is paid.  All computations of interest shall be made on the basis of a year of 365 or 366 days, as the case may be, and the actual number of days elapsed.  Interest shall be payable annually in arrears on each anniversary of the date of this Note, and, with respect to any principal amount, on the date of payment of such principal amount, including, as applicable, the Maturity Date.

3.                  Optional Prepayment.  Maker may, in its sole and absolute discretion, at any time and from time to time, and without penalty or premium, prepay the whole or any portion of the principal or interest due under this Note. In no instance shall any payment obligation hereunder be accelerated except in the sole and absolute discretion of Maker or as specifically mandated by law.

4.                  Payments.  All payments, including optional prepayments, shall be applied first to the payment of accrued and unpaid interest and then to the reduction of principal.  Whenever any payment to be made under this Note shall be due on a Saturday, Sunday or any other day on which commercial banks in Las Vegas, Nevada, are authorized or required by law to close (any other day being a “Business Day”), such payment may be made on the next succeeding Business Day.  Payments shall be made in the lawful money of the United States of America, and shall be payable by wire transfer and in immediately available funds.

5.                  Subordination. 

(a)                The indebtedness evidenced by this Note is and shall be subordinated in right of payment, to the extent and in the manner provided in this Section 5, to the prior payment in full of all existing and future obligations of Maker or any of its affiliates in respect of indebtedness for borrowed money of any kind or nature (collectively, “Senior Indebtedness”).  The provisions of this Section 5 are made for the benefit of the holders of any Senior Indebtedness, each of which is made a beneficiary of this Section 5 and any one or more of which may enforce such provisions.

(b)               Upon any distribution to creditors of the Maker in any bankruptcy, insolvency, liquidation or similar proceeding relating to the Maker or its property:

 

 

 

 

(i)                 holders of Senior Indebtedness shall be entitled to receive payment in full of all obligations due in respect of such Senior Indebtedness (including interest after the commencement of any such proceeding at the rate (if any) specified in the applicable Senior Indebtedness) before Aruze shall be entitled to receive any payment with respect to this Note; and

(ii)               until all obligations with respect to Senior Indebtedness (as provided in clause (i) above) are paid in full, any distribution to which Aruze would be entitled but for this Section 5 shall be made ratably to holders of Senior Indebtedness.

(c)                Upon the occurrence and during the continuance of any “default” or “event of default” under any Senior Indebtedness (or combination thereof) with an original aggregate principal amount in excess of $25,000,000, Maker shall not make any payment, whether of interest, principal or otherwise, in respect of this Note.

(d)               In the event that Aruze receives any payment of any obligations in contravention of this Section 5 with respect to this Note, such payment shall be held by Aruze, in trust for the benefit of, and shall be paid forthwith over and delivered, upon written request, ratably to, the holders of Senior Indebtedness or their representative under the indenture or other agreement (if any) pursuant to which Senior Indebtedness may have been issued, for application to the payment of all obligations with respect to Senior Indebtedness remaining unpaid to the extent necessary to pay such obligations in full and in cash in accordance with their terms, after giving effect to any concurrent payment or distribution to or for the holders of Senior Indebtedness.

(e)                The terms of this Note shall be deemed automatically and immediately modified to the extent necessary to comply with any law or regulation (including, without limitation, gaming laws, rules and regulations) from time to time applicable to Maker or any of its affiliates or to prevent a default under, breach of, event of default under or acceleration of any Senior Indebtedness.  Any payment of principal and interest under this Note shall be made only if and to the extent that (a) payment of a distribution (as defined in Nevada Revised Statutes 78.191) to Maker’s stockholders could immediately thereafter be made in accordance with Nevada Revised Statutes 78.288 and (b) such payment would not violate or contravene any law or regulation (including, without limitation, gaming laws, rules and regulations) then applicable to Maker or any of its affiliates.

6.                  Restrictions on Transfer.  Without the prior written consent of Maker in each instance, Aruze shall not assign, transfer, pledge, hypothecate or otherwise cause or permit any person or entity to possess or control any right, interest or participation in this Note (each, a “Transfer”).  Notwithstanding any such consent by Maker, no Transfer shall be effected except in strict compliance with all applicable securities and gaming laws, rules and regulations.  Any Transfer in violation or contravention of this Section 6 shall be void and of no effect whatsoever.

7.                  Right to Set-Off.  Maker shall have the right, at any time and from time to time (and without notice or demand), to withhold, retain and set off against any amounts otherwise payable under this Note, any unpaid amount, obligation or liability of Aruze from time to time owing or payable to Maker.

8.                  Usury Savings Clause.  If at any time the Interest Rate exceeds the maximum rate of interest permitted to be charged under applicable law, then the portion of any payment attributable to interest charged in excess of such maximum rate shall be deemed to be a prepayment of principal.

9.                  Reservation of Rights.  Maker has entered into this Note without waiver of or prejudice to any and all rights and remedies (including, without limitation, indemnification and injunctive relief) 

-2-

 

available to Maker under its articles of incorporation or applicable law (including, without limitation, gaming laws, rules and regulations), all of which are hereby expressly reserved.

10.              Maker Not Liable for Taxes.  Aruze (and not Maker) shall be solely responsible for reporting all interest due under this Note (whether such interest is paid or imputed under applicable law) and shall be obligated to pay any associated tax obligation arising therefrom.

11.              Waivers.  No term or provision of this Note (including, without limitation, the rights of Maker hereunder) shall be waived except by an instrument in writing signed by the party waiving the same and then only to the extent set forth in such writing.

12.              Amendments.  Except as otherwise provided in Section 5(e), no term or provision of this Note may be modified or amended except by an instrument in writing signed by Maker and Aruze.

13.              Governing Law.  This Note shall be governed by and construed and enforced in accordance with the internal laws of the State of Nevada without regard to any choice of law or conflicts of law provisions thereof.  Any action, suit or proceeding arising out of or relating to this Note shall be brought and maintained exclusively in the courts of the State of Nevada sitting in Clark County, Nevada.

14.              Severability.  Except as otherwise provided in Section 8, if any term or provision of this Note is invalid, illegal or unenforceable, then such term or provision shall be enforceable to the maximum extent permitted by law and in a manner so as to preserve, to the greatest extent possible, the original intent of such term or provision. The invalidity, illegality or unenforceability of any term or provision of this Note shall not affect any other term or provision hereof.

[Signature appears on the following page.] 
[Remainder of this page intentionally left blank.] 

-3-

 

 

IN WITNESS WHEREOF, Maker has duly executed this Redemption Price Promissory Note as of the date first written above.

WYNN RESORTS, LIMITED

 

 

 

By:       /s/ Stephen A. Wynn                                        
            Name:  Stephen A. Wynn

            Title:    Chief Executive Officer

 

-4-sss_incentive-ex10.htm

 

  

 

  

	  	  	
Exhibit 10.1

SOVRAN SELF STORAGE, INC.

ANNUAL INCENTIVE COMPENSATION PLAN FOR EXECUTIVE OFFICERS

(as amended February 20, 2012)

          1.     Definitions.

                    As used herein, unless the context shall otherwise require, the following terms shall have the following meanings:

 

                    (a)     "Award Percentage" for a Bonus Year shall mean a percentage of Base Salary used to determine a Participant's Bonus Award which is the sum of the Award Percentages determined as provided in Schedule A for such Bonus Year;

 

                    (b)     "Base Salary" shall mean a Participant's annual base salary determined as of the last day of a Bonus Year; provided, however, if a Participant is participating in the Plan for less than a full Bonus Year, then the Compensation Committee, in its sole discretion, may adjust that Participant's Base Salary for purposes of determining the Participant's Bonus Award for such Bonus Year;

 

                    (c)     "Bonus Award" with respect to a Bonus Year shall be the product of the Participant's Award Percentage and the Participant's Base Salary for such Bonus Year;

 

                    (d)     "Bonus Year" or "Year" shall mean a calendar year;

 

                    (e)     "Compensation Committee" shall mean the Compensation Committee of the Board of Directors of Sovran;

 

                    (f)     "Executive Officer" shall mean the Executive Chairman, Chief Executive Officer, President, Chief Financial Officer and such other officers of Sovran as from time to time designated by the Compensation Committee;

 

  

 

 

  2

                    (g)     "Participant" shall mean an Executive Officer participating in the Plan;

 

                    (h)     "Participants" shall mean all Executive Officers participating in the Plan;

 

                    (i)     "Plan" shall mean the Sovran Self Storage, Inc. Incentive Compensation Plan for Executive Officers; and

 

                    (j)     "Sovran" shall mean Sovran Self Storage, Inc. and its affiliates.

 

          2.     Eligibility; Participation.

 

                    Each Executive Officer shall be a Participant in the Plan.

 

                    Participants will be paid a Base Salary determined by the Compensation Committee. Participants will be paid Bonus Awards under the Plan in addition to a Participant's Base Salary.  Fringe benefits available now or in the future shall be based on Base Salary only.

 

          3.     Compensation Committee.

 

                    The Compensation Committee is authorized to conclusively interpret the terms and provisions of the Plan, adopt such rules and regulations for its administration as it may deem advisable, decide all questions arising with respect to its operation, and modify, waive or amend the Plan from time to time as may be equitable, except to the extent such modification, waiver or amendment may deprive a Participant of any rights previously granted under the Plan for a Bonus Year.  The Compensation Committee shall annually review the components of the Award Percentage and make such changes as it deems appropriate and advise the Participants of such changes prior to March 31 of such Bonus Year.

 

          4.     Change in Performance Objectives, Etc.

 

                    The Compensation Committee in its sole discretion, may change the Award Percentage or any of its components at any time and from time to time upon notice to the affected Participants by amending Schedule A.  Any such change shall be effective as of the effective date set forth in the notice except that a change which is not prospective only shall not disadvantage the Participants.

 

  

 

 

3 

 

          5.     Payment of Bonus Award.

 

                    A Participant's Bonus Award for a Bonus Year shall be paid in such form as determined by the Compensation Committee, as soon as practicable following the end of the Bonus Year.  Payment shall be made in accordance with the Sovran's standard payroll procedures and all amounts required by law to be withheld (including, without limitation, federal, state and local income and Social Security taxes) shall be deducted.

 

          6.     Restatement of Audited Financial Statements.

 

                    If a Participant receives a Bonus Award for a Bonus Year and Sovran subsequently restates its audited financial statements for such Bonus Year as a result of misconduct of a Participant, the Award Percentage applicable to such Participant shall, as the Compensation Committee deems appropriate, be recalculated based upon the restatement.  If such recalculation results in a reduction of the Award Percentage for a Participant for such Bonus Year, such Participant shall promptly repay to Sovran the excess of the Bonus Award paid over the amount due after such recalculation.  If an Award Percentage is based in part upon financial statements of another company and such financial statements are restated, the Compensation Committee may, as it deems appropriate, recalculate the Award Percentage of Participants adversely affected.

 

          7.     Termination.

 

                    The employment of a Participant with Sovran, and the participation of a Participant in the Plan, may be terminated at any time.  No promise or representation, either express or implied, is made with respect to continued employment, transfer or promotion because of set forth in the notice except that a change which is not prospective only shall not disadvantage the Participants.

 

  

 

 

4  

 

                    If a Participant's employment with Sovran terminates before the end of a Bonus year he or she will receive no incentive compensation for the Bonus Year unless such termination is due to death, disability, retirement after attaining age 60 or such other reason as the Compensation Committee determines appropriate.  In such case, the Compensation Committee shall determine what Bonus Award is appropriate.

 

          8.     Headings.

 

                    The headings in the Plan are for purposes of reference only.

 

          9.     Modification or Termination of the Plan.

 

                    The Compensation Committee reserves the right to modify or terminate the Plan at any time in its sole discretion.  Any modification or termination of the Plan shall be effective on the date notice thereof is mailed or delivered, or announced or otherwise made known, to a Participant or on such other date as may be specified in the notice.

 

 

*  *  *  *  *  *  *  *  *

  

 

 

  

Schedule A

          A.     Definitions.

 

                    As used herein, unless the context shall otherwise require, the following terms shall have the following meanings:

 

                    (i)     "Applicable Four Quarter Period” for a Bonus Year shall mean the four calendar quarter period consisting of the last calendar quarter of the immediately preceding Bonus Year and the first three calendar quarters of the Bonus Year.

 

                    (ii)     "Award Percentage" for a Bonus Year shall mean a percentage of Base Salary used to determine a Participant's Bonus Award which is the sum of the FFO Award Percentage, the Peer Companies Award Percentage and the Performance Award Percentage;

 

                    (iii)     "FFO" shall mean net income (computed in accordance with generally accepted accounting principles), excluding gains or losses from debt restructuring and sales of property plus real property depreciation and related amortization expense and after adjustments to record unconsolidated partnerships and joint ventures on the same basis.  The determination of FFO for any period shall be made based upon a company’s consolidated financial statements for such period; provided however for the purposes of this Plan the Compensation Committee may make adjustments to "FFO" to eliminate the impact of unusual and unforeseen factors as the Compensation Committee deems necessary to avoid inequitable results;

 

                    (iv)     "FFO Award Percentage" shall mean the percentage determined pursuant to Section B(i) hereof;

 

                    (v)     "FFO Target" for a bonus year shall mean the midpoint of the FFO per Share range initially publicly announced by Sovran as its earnings guidance for such year;

 

                    (vi)     "FFO Growth Percentage per Share" shall mean the percentage determined by dividing (x) the increase, if any, in the FFO per Share for the Applicable Four Quarter Period over the FFO per Share for the four calendar quarter period immediately preceding the Applicable Four Quarter Period by (x) the FFO per Share for such preceding four calendar quarter period;

 

  

  

 

 2 

 

                    (vii)     "FFO per Share" shall mean the FFO for an Applicable Four Quarter Period  divided by the average number of shares outstanding for such Applicable Four Quarter Period;

 

                    (viii)     "NOI" shall mean net operating income at the property reporting level (computed in accordance with generally-accepted accounting principles);

 

                    (ix)     "Peer Companies" shall mean Extra Space Storage, Inc., CubeSmart and Public Storage, Inc.;

 

                    (x)     "Peer Companies Award Percentage" shall mean the percentage determined pursuant to Section B(ii) hereof; and

 

                    (xi)     "Performance Award Percentage" shall mean the percentage determined pursuant to Section B(iii) hereof.

 

          B.     Award Percentage.

 

                    (i)     The FFO Award Percentage is determined based upon the FFO per Share for Sovran for the Bonus Year determined as follows:

 

	  	
Sovran's FFO per Share

	  	
Award Percentage

	  
	  	
 

Less than 97.5% of FFO Target

 

	  	
 

          0%

	  
	  	
97.5% or more but less

than 98.75% of FFO Target

 

	  	
 

         15%

	  
	  	
98.75% or more but less

than 100% of FFO Target

 

	  	
 

         30%

	  
	  	
100% of FFO Target

	  	
         40%

 

	  
	  	
More than 100% but less

than 101.125% of FFO Target

 

	  	
 

         45%

	  
	  	
101.125% or more but less

than 102.5% of FFO Target

	  	
 

         50%

 

	  
	  	
102.5% or more of FFO Target

	  	
         60%

	  

 

 

 

  

  

 3 

 

 

                    (ii)     The Peer Companies Award Percentage is determined based upon Sovran's FFO Growth Percentage per Share for the Applicable Four Quarter Period compared to the FFO Growth Percentage per Share for the Applicable Four Quarter Period for each of the Peer Companies as reported in the financial statements of the Peer Companies for the Applicable Four Quarter Period as follows:

 

	  	
Number of Peer Companies' FFO

Growth Percentage Per Share

Exceeded by Sovran's FFO

Growth Percentage Per Share

	  	
 

 

Peer Companies

Award Percentage

	  	
0

	  	
0%

	  	
1

	  	
20%

	  	
2

	  	
40%

	  	
3

	  	
60%

    

                (iii)     The Performance Award Percentage (which shall not exceed 60%) is based upon the Compensation Committee's review of the Participant's overall performance for a Bonus Year and shall include factors such as:

 

	  	
—

	
Improvements in same store revenues, expenses and NOI;

 

	  	
—

	
Results of expansions and enhancements;

 

	  	
—

	
Marketing innovations;

 

	  	
—

	
Monitoring and improving Sovran's enterprise risk management and legal compliance program;

 

	  	
—

	
Use of funds from property dispositions;

 

	  	
—

	
Maintenance of cost control programs;

 

	  	
—

	
Financing Sovran growth including joint venture initiatives and improvements to short and long term debt structures;

 

	  	
—

	
Succession planning with respect to Sovran's key employees;

 

	  	
—

	
Results related to acquisition and disposition of Sovran's properties;

 

	  	
—

	
Such other matters as the Compensation Committee deems appropriate as communicated to the Executive Officers.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}]]