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Exhibit 10.45    
  

 
 

EMPLOYMENT AGREEMENT    
  

        THIS EMPLOYMENT AGREEMENT ("Agreement") is made and effective as of the 14th day of March, 2002, by and between PARK PLACE ENTERTAINMENT CORPORATION, a Delaware
corporation (the "Company"), and HARRY C. HAGERTY III ("Executive"). 

        In
consideration of the premises and of the covenants and agreements herein contained, the parties agree as follows: 

        1.    Employment.    

        A.    The
Company hereby employs Executive in the capacity of Executive Vice President and Chief Financial Officer, and such other capacity or capacities of equal status and
responsibility as the Chief Executive Officer of the Company (the "CEO") shall determine, reporting directly and solely to the CEO of the Company, and Executive hereby accepts such employment, all
upon and subject to the terms and conditions herein set forth. 

        B.    During
the term of his employment hereunder Executive shall devote his best efforts to such employment and perform such duties as are reasonably assigned or delegated to
him by the CEO, consistent with his position and capacities hereunder and such other related positions(s) and capacity or capacities as the CEO shall from time to time determine. While it is
understood and agreed that Executive's job capacities may change at the Company's discretion during the Term (hereafter defined) of this Agreement, his general level of responsibility shall not be
substantially reduced at any time. Furthermore, Executive agrees that the Company may direct him to perform some or all of his duties hereunder for the benefit of subsidiaries and affiliates of the
Company. Subject to the exceptions set forth in 1C(1) below, Executive shall devote his entire working time and attention to the business and
related interests of, and shall be loyal to, the Company and its subsidiaries and affiliates, and Executive agrees to render services hereunder on behalf of the Company and/or on behalf of such
subsidiaries and affiliates. 

        C.    During
the term of his employment hereunder Executive shall not: 

        (1)  Render
services of a business, professional or commercial nature to any person or entity, directly or indirectly, whether for compensation or otherwise, except that this
prohibition shall not be construed to prevent Executive from (a) engaging in occasional outside business activities which (i) are not in violation of 1C(2) and (ii) do not
interfere with the performance of his duties hereunder; (b) investing his assets in such form or manner as will not require any services on the part of Executive in the operation of the affairs
of the companies in which such investments are made and which are not in violation of (2) immediately below; or (c) from engaging in charitable activities so long as such activities do
not interfere with the performance of his duties hereunder. 

        (2)  Engage
in any activity competitive with or adverse to the welfare or business or related interests of the Company or any of its subsidiaries or affiliates, whether
alone, as a partner, officer, director, employee or shareholder of any other corporation or other entity, or otherwise, directly or indirectly, if Executive knows or should have known that such other
corporation or entity is competitive with or adverse to the Company, except that the ownership of not more than one percent of the stock of any one or more publicly traded corporations shall not be
deemed a violation of this subparagraph (2); 

        (3)  Be
engaged by any person or entity which conducts business with or acts as a consultant or advisor to the Company or any of its subsidiaries or affiliates, whether
alone, as a partner, officer, director, employee or shareholder of any other corporation or entity, or otherwise, directly 

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or indirectly, except that ownership of not more than one percent of the stock of any one or more publicly traded corporations shall not be deemed a violation of this subparagraph (3). 

        D.    Executive
acknowledges and agrees that he shall perform his duties hereunder at the corporate headquarters of the Company in Las Vegas, NV and such other locations as may
be required by the nature of Executive's responsibilities; provided, however, that Executive shall not, without his consent, be required to relocate permanently to any place other than LasVegas, NV. 

        2.    Term.    

        The
term of this Agreement (the "Term") shall begin on the effective date stated above and shall continue until February 28, 2005. The Term shall automatically renew beginning
March 1, 2005 for
successive periods of one year unless the Company or the Executive gives written notice to the other at least six months prior to the end of the then applicable term, that the Agreement shall not be
further extended. Otherwise, this Agreement may be terminated as specifically provided below. 

        3.    Compensation.    

        A.    In
consideration of the services to be rendered by Executive hereunder, the Company agrees to pay or cause to be paid to Executive, and Executive agrees to accept, the
sum of $500,000 (the "Base Salary") for the initial twelve month period following the effective date of this Agreement during the Term, which shall be paid in accordance with the regular payroll
practices of the Company. During the Term, the Base Salary shall be reviewed annually in accordance with the Company's then applicable merit policies or as otherwise determined by the CEO and the
Board in its discretion, but in no event shall the Base Salary be lower than $500,000 per annum. 

        B.    In
addition to Base Salary, the Executive shall be entitled to participate in the Company's annual incentive plan for senior executives (the "Annual Bonus"). The target
amount of any Annual Bonus shall be set at 100% of Base Salary depending upon company and individual performance and shall be subject to the discretion of the CEO and the Board. The Executive will be
eligible for additional special bonus awards if and when determined by the Board in its sole discretion. 

        C.    In
addition to Base Salary and Annual Bonus, the Executive shall be entitled to participate in the Company's Stock Option Plan and Long-Term Incentive Plans
as in effect from time to time in accordance with the terms of such Plans. Upon confirmation by the Compensation Committee of the Board, Executive shall be granted options to acquire 400,000 shares of
the Company's common stock. The option price shall be set on the date of approval of the grant as provided in the Option Plan. Additional grants shall be subject to the discretion of the Board. Such
options shall vest and be governed by the provisions of the Option Plan. 

        D.    If
the Company restructures the compensation arrangement applicable to its senior executives by replacing the plans described in B and C, above, Executive shall be
entitled to participate in the new plans at a level appropriate in light of his status and, as nearly as may be, with comparable economic effect to the compensation provided for in B and C, above. 

        4.    Vacation and Other Benefits.    

        A.    Executive
shall be entitled to reasonable paid vacation annually, as well as other employment benefits, including death and retirement plans, and group insurance programs
for medical, hospitalization, life, and long term disability, and the like, afforded in general to senior executives of the Company of comparable status and tenure, and consistent with the Company's
policies for executive
employment benefits. The Company may, in its sole discretion, change such benefits policies from time to time. 

        B.    So
long as Executive is employed hereunder, the Company shall maintain in full force and effect a policy of term insurance on the life of Executive in an amount as
provided by the applicable 

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policy of the Company. Executive shall promptly advise the Company of the designated beneficiary or beneficiaries of such policy. Upon termination of Executive's employment, to the extent permitted
under the policy, Executive shall have the right to transfer such policy to his own name or the name of a beneficiary thereof, provided Executive shall pay all premiums for such policy as shall accrue
thereafter. 

        5.    Expenses.    

        The
Company shall pay or cause to be paid all reasonable expenses incurred by Executive in the performance of his responsibilities and duties for the Company hereunder
[including reasonable and customary expenses (including, without limitation, attorneys' fees and expenses) incurred in connection with entering into this Agreement], as well
those reasonably incurred in the promotion of the Company's business, including but not limited to the costs of licensing or qualification as may be required by any gaming jurisdiction. Executive
shall submit to the Company periodic statements of all expenses so incurred in accordance with the Company's policy. Subject to such audits as the Company may deem appropriate, the Company shall,
promptly and in the ordinary course, reimburse Executive the full amount of any such expenses advanced by Executive. 

        6.    Covenants; Confidential Information.    

        A.    Executive
agrees that, for the applicable period specified below, he shall not, directly or indirectly, do any of the following: 

        (1)  Own,
manage, control, or participate in the ownership, management or control of, or be employed or engaged by, or otherwise affiliated or associated with, as a
consultant, independent contractor or otherwise, any other corporation, partnership, proprietorship, firm, association or other business entity, or otherwise engage in any business that is competitive
with any business or enterprise in which the Company is engaged at the time Executive's employment ceases including, without limitation, any gaming venture, Indian gaming, river boat gaming or
otherwise within any country or any state (or any metropolitan area involving multiple jurisdictions) in which there is located any gaming facility owned, managed or under development to be owned or
managed by the Company, determined as of the date Executive ceases to be employed hereunder. 

        (2)  Solicit
or induce any person who is an employee, officer, consultant or agent of the Company or of any subsidiary or affiliate of the Company, to terminate such
relationship. 

        (3)  Employ,
assist in employing, or otherwise be associated in business with any present or former employee or officer of the Company or of any subsidiary or affiliate of
the Company, including without limitation those who commence such positions with the Company or any such subsidiary or affiliate, after the effective date hereof; provided that if such circumstance
occurs without the knowledge or assistance of Executive, it shall not be a breach of this provision. 

        (4)  Disclose,
divulge, discuss, copy or otherwise use or suffer to be used in any manner, the customer lists, proprietary and confidential inventions, ideas, discoveries,
marketing methods, product research or other data or any other methodologies of the Company (collectively, "Confidential Information"), it being acknowledged by Executive that all such Confidential
Information compiled or obtained by, or furnished to, Executive while he is or was employed by or associated with the Company, is confidential and proprietary information which is the exclusive
property of the Company. 

        B.    The
provisions of subparagraphs 6A(1) through 6A(4) hereof shall be operative throughout the Term and for so long as Executive is receiving compensation (other than
benefit continuation) from the Company thereafter, except as provided in the following sentences. In the event that Executive is terminated pursuant to paragraph 8 hereof, for Cause, the
provisions of subparagraphs 6A(1), 6A(2) and 6A(3) shall be operative during the Term and for a period of one year thereafter. In the event that 

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Executive is terminated pursuant to paragraph 8, without Cause, the provisions of subparagraph 6A(1) shall be operative for a period of six months after the termination date and the provisions
of subparagraphs 6A(2) and 6A(3) shall be operative for a period of 12 months after the termination date. All obligations created by the terms of subparagraph 6A(4) are of a continuing nature
and shall remain in effect at all times during Executive's period of employment hereunder and for a period of five years thereafter; provided that if at
any time following the termination of this Agreement any Confidential Information shall become part of the public domain through no fault of Executive, then the restrictions and limitations of
subparagraph 6A(4) shall not apply to such particular information. 

        C.    The
Executive acknowledges and agrees that the restrictions contained in this paragraph are reasonable and necessary to protect and preserve the legitimate interests,
properties, goodwill and business of the Company, that the Company would not have entered into this Agreement in the absence of such restrictions and that irreparable injury will be suffered by the
Company should the Executive breach any of those provisions. Executive represents and acknowledges that (i) the Executive has been advised by the Company to consult Executive's own legal
counsel in respect of this Agreement, and (ii) that the Executive has had full opportunity, prior to execution of this Agreement, to review thoroughly this Agreement with the Executive's
counsel. The Executive further acknowledges and agrees that a breach of any of the restrictions in this paragraph cannot be adequately compensated by monetary damages. 

        D.    The
Company agrees to give the Executive written notice of any action taken by the Executive that it believes in good faith to constitute a violation of the Executive's
undertakings under Paragraph 6 and to give the Executive at least 10 days thereafter to cease any such action which, if he complies with such request, will preclude any further action or
any recovery by the Company. In the event that the Executive fails to do so, the Executive agrees that the Executive's right to any payment pursuant to Paragraph 8 shall be forfeited (but only
to the extent of those portions not previously received) and the Executive's right to exercise any and all stock options shall cease. In addition, in the case of any violation of the provisions of
this paragraph 6, the Company shall be entitled to preliminary and permanent injunctive relief, without the necessity of proving actual damages, as well as provable damages and an equitable
accounting of all earnings, profits and other benefits arising from any violation of this paragraph (with appropriate credit for the amounts forfeited by the Executive and the
non-exercisability of the stock options), which rights shall be cumulative and in addition to any other rights or remedies to which the Company may be entitled. 

        E.    In
the event that any of the provisions of this Paragraph 6 should ever be adjudicated to exceed the time, geographic, service, or other limitations permitted by
applicable law in any jurisdiction, it is the intention of the parties that the provision shall be amended to the extent of the maximum time, geographic, service, or other limitations permitted by
applicable law, that such amendment shall apply only within the jurisdiction of the court that made such adjudication and that the provision otherwise be enforced to the maximum extent permitted by
law. The Executive irrevocably and unconditionally (x) agrees that any suit, action or other legal proceeding arising out of this Paragraph, including without limitation, any action commenced
by the Company for preliminary and permanent injunctive relief and other equitable relief, may be brought (without posting a bond) in the United States District Court for the District of Nevada, or if
such court does not have jurisdiction or will not accept jurisdiction, in any court of general jurisdiction in Las Vegas, NV, (y) consents to the non-exclusive jurisdiction of any
such court in any such suit, action or proceeding, and (z) waives any objection which the Executive may have to the laying of venue of any such suit, action or proceeding in any such court. The
Executive also irrevocably and unconditionally consents to the service of any process, pleadings, notices or other papers in a manner permitted by the notice provisions of Paragraph 12 hereof. 

        F.    For
purposes of this Paragraph 6, the term "Company" shall be deemed to mean the Company and/or any of its subsidiaries or affiliates, together with their
respective successors or assigns. 

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        7.    Illness, Incapacity or Death During Employment.    

        A.    If
Executive is unable to perform services hereunder by reason of illness or incapacity resulting in a failure to discharge his duties under this Agreement as determined
by the Company in the manner described in Paragraph 5(A) of the Company's form of Change of Control Agreement applicable to Executive, for six or more consecutive months, then upon
30 days notice, the Company may terminate the employment of Executive and the Term under this Agreement, and upon such termination Executive shall be paid (i) his Base Salary on a
pro-rata basis to the date of termination through the
30-day period; (ii) an amount equal to his prior year's Annual Bonus on a pro-rata basis to the date of termination through the 30-day notice period;
(iii) reimbursement of all expenses reasonably incurred by Executive in performing his responsibilities and duties for the Company prior to and including such date; and (iv) applicable
insurance and other group benefits proceeds. In the event of termination pursuant to 7(A), 

        (1)  Executive
shall have the right to the assignment of any and all of the Company group insurance policies or health protection plans if and to the extent that such
policies and plans permit assignment out of the group to the individual Executive, and 

        (2)  Executive
shall be entitled to a salary continuation benefit equal to 60% of his Base Salary, reduced by the value of any salary continuation received (whether in lump
sum or periodically) under the Company's Long Term Disability Plan or any other applicable insurance or other group benefits provided by the Company. This salary continuation benefit shall be payable
for the same period as benefits would be provided to a similarly situated senior officer of the Company under the Plan. 

        B.    In
the event of Executive's death, this Agreement shall automatically terminate; provided that the Company shall pay to the Executive's estate (i) his Base Salary
on a pro-rata basis to the date of death; (ii) an amount equal to his prior year's Annual Bonus on a pro-rata basis to the date of death; (iii) reimbursement of
all expenses reasonably incurred by Executive in performing his responsibilities and duties for the Company prior to and including such date; and (iii) applicable insurance and other group
benefits proceeds. 

        8.    Termination for Cause or without Cause.    

        A.    The
employment of Executive under this Agreement, and the Term hereof, may be terminated by the Company for Cause at any time. If the Company properly terminates
Executive's employment hereunder for Cause, it shall be without liability to Executive except for all amounts and benefits accrued and due but not paid to the date of such termination. For all
purposes of this Agreement, the term "Cause" means: 

        (1)  Executive's
material fraud, dishonesty, willful misconduct or gross negligence in the performance of his duties hereunder, including willful failure to perform such
duties as may properly be assigned him hereunder; 

        (2)  Executive's
material breach of any provision of this Agreement; or 

        (3)  Executive's
failure to qualify (or having so qualified being thereafter disqualified or suspended) under any suitability or licensing requirement to which Executive may
be subject by reason of his position with the Company or any of its affiliates or subsidiaries, under the laws of any applicable gaming jurisdiction, except  that any such failure to qualify or
disqualification or suspension resulting from Executive's corporate conduct, rather than individual conduct, shall not constitute "Cause"
hereunder. 

        B.    Any
termination for Cause shall not be in limitation of any other right or remedy the Company may have under law, pursuant to this Agreement or otherwise. 

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        C.    If
the Company believes that Executive has engaged in conduct that would be cause for termination of this Agreement, the Company shall give written notice of the grounds
for such action and may suspend Executive with pay until such time as the Company has made a decision whether to terminate Executive for cause. Unless such cause constitutes a crime or jeopardizes the
safety or welfare of the Company's property, employees, customers or licenses (in which case no cure period shall apply), Executive shall have 30 days to cure such grounds to the Company's
satisfaction. In the event that the Company exercises its right to terminate this Agreement for Cause, Executive shall have the right to challenge such action by seeking arbitration in the manner
provided in Paragraph 9. 

        D.    The
employment of Executive under this Agreement may be terminated without Cause at any time upon written notice to Executive. (A non-renewal of the Term
shall not be treated as a Termination without Cause.) In such case the Company shall have no liability arising out of such termination except as follows: 

        (1)  Executive
shall be paid (a) the Base Salary for the balance of the Term or for a period of twelve months, whichever is greater, paid in accordance with the
regular payroll practices of the Company, plus (b) a lump sum amount equal to the greater of the average of the Annual Bonuses, if any, paid to the Executive for the three prior years or the
amount of the Annual Bonus, if any, paid for the prior year; 

        (2)  Any
remaining unvested options or stock retention units that would have vested during the applicable Term of this Agreement shall be vested, and 

        (3)  Executive
shall be entitled to continuation of health and dental benefits for the remaining portion of the otherwise applicable Term. 

        Fifty
percent of amounts paid after termination hereunder shall be consideration for the Executive's undertaking not to breach the terms of the covenants contained in Paragraph 6
hereof. The Company shall also pay to the Executive, in a lump sum in cash within ten (10) days after the date of termination, the Executive's accrued but unpaid cash compensation (the "Accrued
Obligations"), which shall include but not be limited to: (1) any portion of the Executive's Annual Base Salary through the date of termination that has not yet been paid and an amount
representing the Annual Bonus for the year of termination determined at the target rate under the Company's then applicable incentive bonus plan, and multiplying that amount by a fraction, the
numerator of which is the number of days in the current fiscal year through the date of termination, and the denominator of which is 365 (the "Annual Bonus Amount"); (2) any compensation
previously deferred by the Executive (together with any accrued interest or earnings thereof) that has not yet been paid; (3) any earned but unpaid vacation pay; and (4) similar unpaid
items that have accrued or to which the Executive has become entitled as of the date of termination, including declared but unpaid bonuses and unreimbursed employee business expenses, and provided
further that the Company's obligation to make any payments under this paragraph 8, to the extent that any such payment shall not have accrued as of the day before the date of termination shall
also be conditioned upon the Executive's execution, and non-revocation, of a written release, substantially in the form attached hereto as Annex 1 (the "Release"), of any and all claims
against the Company and all related parties with respect to all matters arising out of the Executive's employment by the Company (other than any entitlements under the terms of this Agreement or under
any other plans or programs of the Company in which the Executive participated and under which the Executive has accrued or become entitled to a benefit), or the termination thereof. 

        E.    In
the event of a Change of Control (as defined in the Change of Control Agreement), Executive shall have certain rights as set forth in a separate agreement (a "Change
of Control Agreement") of even date herewith by and between Executive and the Company. 

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        9.    Arbitration.    

        The
Company and the Executive mutually consent to the resolution by arbitration by a panel of three arbitrators, in accordance with the National Rules for the Resolution of Employment
Disputes of the American Arbitration Association, to be held in Las Vegas, Nevada, of all claims or controversies arising out of the Executive's employment (or its termination) that the Company may
have against the Executive or that the Executive may have against the Company or against its officers, directors, shareholders, employees or agents in their capacity as such other than a claim which
is primarily for an injunction or other equitable relief. 

        10.    Severable Provisions.    

        The
provisions of this Agreement are severable, and if any one or more provisions hereof may be determined to be illegal or otherwise unenforceable, in whole or in part, the remaining
provisions, and
any partially unenforceable provision to the extent enforceable, shall nevertheless be binding and enforceable. 

	11.
	Binding Agreement.

        The
rights and obligations of the Company and Executive under this Agreement shall be binding upon and inure to the benefit of, and be enforceable by and against, the parties hereto and
their respective heirs, personal representations, and successors and assigns. 

	12.
	Notices.

        Any
notice, request, demand, waiver, consent, approval or other communication (a "Notice") that is required or permitted hereunder shall be in writing as referenced below. All Notices
may be delivered by telecopier or similar device, with a true copy thereof sent the same day by Federal Express, DHL Courier, or other similar overnight delivery service providing receipt against
delivery, and shall be deemed given or made upon receipt thereof. All Notices are to be given or made to the parties at the following addresses (or to such other address as any party may designate by
a Notice given in accordance with the provisions of this Paragraph 12): 

	If to the Company:	 	Park Place Entertainment Corporation

3930 Howard Hughes Parkway

Las Vegas, NV 89109

Attention: General Counsel
	

If to Executive:	
 	

Harry C. Hagerty III

c/o 3930 Howard Hughes Parkway

Las Vegas, NV 89109

	13.
	Waiver.

        Either
party's failure to enforce any provision(s) of this Agreement shall not in any way be construed as a waiver of any such provision(s) as to any future violations(s) thereof, nor
prevent that party thereafter from enforcing each and every other provision of this Agreement. The rights granted the parties herein are cumulative, and the waiver by a party of any single remedy
shall not constitute a waiver of such party's right to assert all other legal remedies available to his or it under the circumstances. 

	14.
	Governing Law.

        This
Agreement shall be governed by and construed and interpreted according to the internal laws of the State of Nevada, without reference to such State's principles of conflict of laws. 

	15.
	Tax Withholding.

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        Notwithstanding
anything the to contrary set forth in this Agreement, the Company may withhold from amounts payable under this Agreement, all federal, state, local and foreign income and
employment taxes that are required to be withheld by applicable laws or regulations. 

	16.
	Captions and Paragraph Headings.

        Captions
and paragraph headings used herein are for convenience only and are not a part of this Agreement and shall not be used in construing it. 

	17.
	Entire Agreement.

        This
Agreement constitutes the entire agreement between the Company and Executive with respect to the subject matter hereof, and may not be modified or terminated orally. No
modification, termination or attempted waiver of this Agreement shall be valid unless in writing and signed by the party against whom the same is sought to be enforced. 

        IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written. 

	 	 	The Company:
	

 	
 	
PARK PLACE ENTERTAINMENT CORPORATION
	

 	
 	

By:	

 
	 	 	 	

	

 	
 	

Executive:
	

 	
 	

 Harry C. Hagerty III

 
 

ANNEX 1
  
    GENERAL RELEASE    
  

        1.    I,                        ,
for and in consideration of certain payments to be made and the benefits to be provided to me under Section 8 of my Employment Agreement dated
as of March    , 2002 (the "Employment Agreement") with Park Place Entertainment Corporation (the "Company"), and conditioned upon such payments and provisions, do hereby REMISE, RELEASE,
AND FOREVER DISCHARGE the Company and each of its subsidiaries and affiliates, their officers, directors, shareholders, partners, employees and agents, their respective successors and assigns, heirs,
executors and administrators (hereinafter collectively included within the term the "Company"), acting in any capacity whatsoever, of and from any and all manner of actions and causes of actions,
suits, debts, claims and demands whatsoever in law or in equity, which I ever had, now have, or hereafter may have, or which my heirs, executors or administrators hereafter may have, by reason of any
matter, cause or thing whatsoever from the beginning of my employment with Park Place Entertainment Corporation to the date of these presents arising from or relating in any way to my employment
relationship and the termination of my employment relationship with Park Place Entertainment Corporation, including but not limited to, any claims which have been asserted, could have been asserted,
or could be asserted now or in the future under any federal, state or local laws, including any claims under the Age Discrimination in Employment Act ("ADEA"), 29 U.S.C. §621  et seq., Americans
with Disabilities Act 

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("ADA"), 42 U.S.C. §2000e et seq., Title VII of the Civil Rights Act of 1964, 42 U.S.C. §2000e et
seq., any contracts between the Company and me and any common law claims now or hereafter recognized and all claims for counsel fees and costs; provided, however, that this
General Release shall not apply to any entitlements under the terms of the Employment Agreement or under any other plans or programs of the Company in which I participated and under which I have
accrued and become entitled to a benefit. 

        2.    Subject
to the limitations of paragraph 1 above, I expressly waive all rights afforded by any statute that expressly limits the effect of a release with respect to
unknown claims. I understand the significance of this release of unknown claims and the waiver of statutory protection against a release of unknown claims which provides as follows: 

A
general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by his must have materially affected
his settlement with the debtor. 

        3.    I
hereby agree and recognize that my employment by the Company was permanently and irrevocably severed on                        ,
            and the Company has no
obligation, contractual or otherwise to me to hire, rehire or re-employ me in the future. I acknowledge that the terms of the Employment Agreement provide me with payments and benefits
which are in addition to any amounts to which I otherwise would have been entitled. 

        4.    I
hereby agree and acknowledge that the payments and benefits provided by the Company are to bring about an amicable resolution of my employment arrangements and are not
to be construed as an admission of any violation of any federal, state or local statute or regulation, or of any duty owed by the Company and that this Agreement and General Release is made
voluntarily to provide an amicable resolution of my employment relationship with the Company and the termination of the Employment Agreement. 

        5.    I
hereby certify that I have read the terms of this General Release, that I have been advised by the Company to discuss it with my attorney, and that I understand its
terms and effects. I acknowledge, further, that I am executing this General Release of my own volition with a full understanding of its terms and effects and with the intention of releasing all claims
recited herein in exchange for the consideration described in the Employment Agreement, which I acknowledge is adequate and satisfactory to me. None of the above-named parties, nor their agents,
representatives, or attorneys have made any representations to me concerning the terms or effects of this General Release other than those contained herein. 

        6.    I
hereby acknowledge that I have been informed that I have the right to consider this General Release for a period of 21 days prior to execution. I also understand
that I have the right to revoke this General Release for a period of seven days following execution by giving written notice to the Company at 3930 Howard Hughes Parkway, Las Vegas, NV 89101,
Attention: General Counsel. 

        Intending
to be legally bound hereby, I execute the foregoing General Release this            day
of                        , 20    . 

	
 Witness	 	 	 	

10

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Exhibit 10.45

EMPLOYMENT AGREEMENT

ANNEX 1 GENERAL RELEASEQuickLinks
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Exhibit 10.46    
  

 
 

CHANGE OF CONTROL AGREEMENT    
  

        AGREEMENT by and between Park Place Entertainment Corporation, a Delaware corporation (the "Company"), and Harry C. Hagerty III (the "Employee"), dated as of the
25th day of March, 2002. 

        The
Board of Directors of the Company (the "Board"), has determined that it is in the best interests of the Company and its shareholders to assure that the Company will have the
continued dedication of the Employee, notwithstanding the possibility, threat, or occurrence of a Change of Control (as defined below) of the Company. The Board believes it is imperative to diminish
the inevitable distraction of the Employee by virtue of the personal uncertainties and risks created by a pending or threatened Change of Control, to encourage the Employee's full attention and
dedication to the Company currently and in the event of any threatened or pending Change of Control, and to provide the Employee with compensation arrangements upon a Change of Control which provide
the Employee with individual financial security and which are competitive with those of other corporations and, in order to accomplish these objectives, the Board has caused the Company to enter into
this Agreement. 

        NOW,
THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: 

        1.    Certain Definitions.

        (a)  The
"Effective Date" shall be the first date during the "Change of Control Period" (as defined in Section 1(b)) on which a Change of Control occurs. Anything in
this Agreement to the contrary notwithstanding, if the Employee's employment with the Company is terminated prior to the date on which a Change of Control occurs, and it is reasonably demonstrated by
Employee that such termination (1) was at the request of a third party who has taken steps reasonably calculated to effect a Change of Control or (2) otherwise arose in connection with
or anticipation of a Change of Control,
then for all purposes of this Agreement the "Effective Date" shall mean the date immediately prior to the date of such termination. 

        (b)  The
"Change of Control Period" is the period commencing on the date hereof and ending on the earlier to occur of (i) the third anniversary of such date or
(ii) the first day of the month next following the Employee's attainment of age 65; provided, however, that commencing on the date one year after
the date hereof, and on each annual anniversary of such date (such date and each annual anniversary thereof is hereinafter referred to as the "Renewal Date"), the Change of Control Period shall be
automatically extended so as to terminate on the earlier of (x) three years from such Renewal Date or (y) the first day of the month coinciding with or next following the Employee's
attainment of age 65, unless at least 60 days prior to the Renewal Date the Company shall give the Employee written notice that the Change of Control Period shall not be so extended. 

        [c]    The
"Employment Agreement" shall mean the Employment Agreement by and between the Company and the Employee on the Effective Date. 

        2.    Change of Control. For the purpose of this Agreement, a "Change of Control" shall mean: 

        (a)  An
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a "Person") of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either (1) the then outstanding shares of common stock of the Company (the
"Outstanding Company Common Stock") or (2) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the
"Outstanding Company Voting 

1

 

Securities") (a "Control Purchase"); excluding, however, the following: (1) any acquisition directly from the Company, other than an acquisition by virtue of the exercise of a conversion
privilege unless the security being so converted was itself acquired directly from the Company; (2) any acquisition by the Company, (3) Any acquisition by any employee benefit plan (or
related trust) sponsored or maintained by the Company or any corporation controlled by the Company; (4) any acquisition by any corporation pursuant to a transaction which complies with clauses
(1), (2) and (3) of subsection (c) of this definition; or (5) any acquisition by Barron Hilton or the Conrad N. Hilton Fund; or 

        (b)  A
change in the composition of the Board such that the individuals who, as of the effective date of this Agreement, constitute the Board (such Board shall be hereinafter
referred to as the "Incumbent Board") cease for any reason to constitute at least a majority of the Board; provided,  however, for purposes of this
definition, that any individual who becomes a member of the Board subsequent to the effective date of this Agreement,
whose election, or nomination for election by the Company's stockholders, was approved by a vote of at least a majority of those individuals who are members of the Board and who were also members of
the Incumbent Board (or deemed to be such pursuant to this proviso) shall be considered as though such individual were a member of the Incumbent Board; but, provided
further, that any such individual whose initial assumption of office occurs as a result of either
an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the Board shall not be so considered as a member of the Incumbent Board; or 

        (c)  The
consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company ("Corporate
Transaction"); excluding however, such a Corporate Transaction pursuant to which (1) all or substantially all of the individuals and entities who are the beneficial owners, respectively, of the
outstanding Company common stock and outstanding Company voting securities immediately prior to such Corporate Transaction will beneficially own, directly or indirectly, more than 60% of,
respectively, the outstanding shares of common stock, and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may
be, of the corporation resulting from such Corporate Transaction (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the
Company's assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction, of the outstanding
Company common stock and outstanding Company voting securities, as the case may be, (2) no Person (other than the Company, any employee benefit plan (or related trust) of the Company or such
corporation resulting from such Corporate Transaction) will beneficially own, directly or indirectly, 20% or more of, respectively, the outstanding shares of common stock of the corporation resulting
from such Corporate Transaction or the combined voting power of the outstanding voting securities of such corporation entitled to vote generally in the election of directors except to the extent that
such ownership existed prior to the Corporate Transaction, and (3) individuals who were members of the Incumbent Board will constitute at least a majority of the members of the board of
directors of the corporation resulting from such Corporate Transaction; or 

	(d)
	A
complete liquidation or dissolution of the Company. 

        3.    Employment Period. If there is a Change of Control, the Company hereby agrees to continue the Employee in its employ, and
the Employee hereby agrees to remain in the employ of the Company, for the period commencing on the Effective Date and ending on the earlier to occur of (a) the later of (i) the third
anniversary of such date, and (ii) the expiration of the Term (as set forth in the Employment Agreement), or (b) the first day of the month coinciding with or next following the
Employee's attainment of age 65 (the"Employment Period"). 

2

 

        4.    Terms of Employment.

        (a)  Position and Duties.

        (i)    During
the Employment Period, (A) the Employee's position (including status, offices, titles and reporting requirements), authority, duties and responsibilities
shall be at least commensurate in all material respects with the most significant of those held, exercised and assigned at any time during the 90-day period immediately preceding the
Effective Date and (B) subject to the provisions of the Employment Agreement, the Employee's services shall be performed at the location where the Employee was employed immediately preceding
the Effective Date or any office or location less than thirty-five (35) miles from such location. 

        (ii)  During
the Employment Period, and excluding any periods of vacation and sick leave to which the Employee is entitled, the Employee agrees to devote reasonable attention
and time during normal business hours to the business and affairs of the Company and, to the extent necessary to discharge the responsibilities assigned to the Employee hereunder and as provided in
the Employment Agreement, to use the Employee's reasonable best efforts to perform faithfully and efficiently such responsibilities. During the Employment Period it shall not be a violation of this
Agreement for the Employee to (A) serve on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill speaking engagements or teach at educational institutions,
(C) manage personal investments or (D) participate as a member or consultant to professional associations and to otherwise participate in the activities of associations in such manner as
has been historically conducted by the Employee, so long as such activities do not significantly interfere with the performance of the Employee's responsibilities as an employee of the Company in
accordance with this Agreement. It is expressly understood and agreed that to the extent that any such activities have been conducted by the Employee prior to the Effective Date, the continued conduct
of such activities (or the conduct of activities similar in nature and scope thereto) subsequent to the Effective Date shall not thereafter be deemed to interfere with the performance of the
Employee's responsibilities to the Company. 

        (b)  Compensation.

        (i)    Base Salary. During the Employment Period, the Employee shall receive an annual base salary ("Base Salary") at a monthly
rate at least equal to the highest monthly base salary paid or payable to the Employee by the Company during the twelve-month period immediately preceding the month in which the Effective Date occurs.
During the Employment Period, the Base Salary shall be reviewed at least annually and shall be increased at any time and from time to time as shall be substantially consistent with increases in base
salary awarded in the ordinary course of business to other key employees of the Company and its subsidiaries. Any increase in Base Salary shall not serve to limit or reduce any other obligation to the
Employee under this Agreement. Base Salary shall not be reduced after any such increase. 

        (ii)  Annual Bonus. In addition to Base Salary, the Employee shall be awarded, for each fiscal year during the Employment
Period, an annual bonus (an "Annual Bonus") (either pursuant to the incentive compensation plan of the Company or otherwise) in cash at least equal to the average bonus payable to the Employee from
the Company and its subsidiaries in respect of the three fiscal years immediately preceding the fiscal year in which the Effective Date occurs. 

        (iii)  Incentive, Savings and Retirement Plans. In addition to Base Salary and Annual Bonus payable as hereinabove provided,
the Employee shall be entitled to participate during the Employment Period in all incentive, savings and retirement plans, practices, policies and programs applicable to other key employees of the
Company and its subsidiaries (including 

3

 

the Company's employee benefit plans, in each case providing benefits which are the economic equivalent to those in effect on the Effective Date or as subsequently amended for employees generally).
Such plans, practices, policies and programs, in the aggregate, shall provide the Employee with compensation, benefits and reward opportunities at least as favorable as the most favorable of such
compensation, benefits and reward opportunities provided by the Company for the Employee under such plans, practices, policies and programs as in effect at any time during the 90-day
period immediately preceding the Effective Date or, if more favorable to the Employee, as provided at any time thereafter with respect to other key employees of the Company and its subsidiaries. 

        (iv)  Welfare Benefit Plans. During the Employment Period, the Employee and/or the Employee's family, as the case may be,
shall be eligible for participation in and shall receive all benefits under welfare benefit plans, practices, policies and programs provided by the Company and its subsidiaries (including, without
limitation, medical, prescription, dental, disability, salary continuance, employee life, group life, accidental death and travel accident insurance plans and programs), at least as favorable as the
most favorable of such plans, practices, policies and programs in effect at any time during the 90-day period immediately preceding the Effective Date or, if more favorable to the Employee
and/or the Employee's family, as in effect at any time thereafter with respect to other key employees of the Company and its subsidiaries. 

        (v)  Expenses. During the Employment Period, the Employee shall be entitled to receive prompt reimbursement for all reasonable
expenses incurred by the Employee in accordance with the most favorable policies, practices and procedures of the Company and its subsidiaries in effect at any time during the 90-day
period immediately preceding the Effective Date or, if more favorable to the Employee, as in effect at any time thereafter with respect to other key employees of the Company and its subsidiaries. 

        (vi)  Fringe Benefits. During the Employment Period, the Employee shall be entitled to fringe benefits in accordance with the
most favorable plans, practices, programs and policies of the Company and its subsidiaries in effect at any time during the 90-day period immediately preceding the Effective Date or, if
more favorable to the Employee, as in effect at any time thereafter with respect to other key employees of the Company and its subsidiaries. 

        (c)  Office and Support Staff. During the Employment Period, the Employee shall be entitled to an office or offices of a size
and with furnishings and other appointments, and to secretarial and other assistance, at least equal to the most favorable of the foregoing provided to the Employee by the Company and its subsidiaries
at any time during the 90-day period immediately preceding the Effective Date or, if more favorable to the Employee, as provided at any time thereafter with respect to other similarly
situated key employees of the Company and its subsidiaries. 

        (d)  Vacation. During the Employment Period, the Employee shall be entitled to paid vacation in accordance with the most
favorable plans, policies, programs and practices of the Company and its subsidiaries as in effect at any time during the 90-day period immediately preceding the Effective Date or, if more
favorable to the Employee, as in effect at any time thereafter with respect to other key employees of the Company and its subsidiaries. 

        (e)  Indemnification. During the term of the Employee's employment with the Company and for a period of not less than three
years (or, if applicable, such longer period as the Company then provides coverage for its executives generally) after the Date of Termination (as defined below) the Employee shall be entitled to
indemnification and, to the extent available on commercially reasonable terms, insurance coverage therefor, with respect to the various liabilities as to which the Employee has been customarily
indemnified during the Change of Control Period. 

4

 

        5.    Termination.

        (a)  Death or Disability. This Agreement shall terminate automatically upon the Employee's death. If the Company determines in
good faith that the Disability of the Employee has occurred (pursuant to the definition of "Disability" set forth below), it may give to the Employee written notice of its intention to terminate the
Employee's employment. In such event, the Employee's employment with the Company shall terminate effective on the 30th day after receipt of such notice by the Employee (the "Disability Effective
Date"), provided that, within the 30 days after such receipt, the Employee shall not have returned to full-time performance of the Employee's duties. For purposes of this Agreement,
"Disability" means disability which, at least 26 weeks after its commencement, is determined to be total and permanent by a physician selected by the Company or its insurers and acceptable to the
Employee or the Employee's legal representative (such agreement as to acceptability not to be withheld unreasonably). 

        (b)  Cause. During the Employment Period, the Company may terminate the Employee's employment for Cause (as provided in the
Employment Agreement). 

        (c)  Good Reason. During the Employment Period, the Employee's employment may be terminated by the Employee for Good Reason.
For purposes of this Agreement, "Good Reason" means: 

          (i)  the
assignment to the Employee of any duties inconsistent in any respect with the Employee's position (including status, offices, titles and reporting requirements),
authority, duties or responsibilities as contemplated by Section 4(a) of this Agreement or the Employment Agreement, or any other action
by the Company which results in a diminution in such position, authority, duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad
faith and which is remedied by the Company promptly after receipt of notice thereof given by the Employee; 

        (ii)  any
failure by the Company to comply with any of the provisions of Section 4(b) of this Agreement, other than an isolated, insubstantial and inadvertent failure
not occurring in bad faith and which is remedied by the Company promptly after receipt of notice thereof given by the Employee; 

        (iii)  the
Company's requiring the Employee to be based at any office or location other than that described in Section 4(a)(i)(B) hereof, except for travel reasonably
required in the performance of the Employee's responsibilities; 

        (iv)  any
purported termination by the Company of the Employee's employment otherwise than as expressly permitted by this Agreement or the Employment Agreement; or 

        (v)  any
failure by the Company to comply with and satisfy Section 11(c) of this Agreement. 

        For
purposes of this Section 5(c), any good faith determination of "Good Reason" made by the Employee shall be conclusive. 

        Anything
in this Agreement to the contrary notwithstanding, a termination of employment by the Employee for any reason during the 30-day period immediately following the
first anniversary of the Effective Date shall be deemed to be a termination for Good Reason for all purposes of this Agreement. 

        (d)  Notice of Termination. During the Employment Period, any termination by the Company for Cause or by the Employee for Good
Reason shall be communicated by Notice of Termination to the other party hereto given in accordance with Section 12(b) of this Agreement. For purposes of this Agreement, a "Notice of
Termination" means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) sets forth in reasonable detail the facts and 

5

 

circumstances claimed to provide a basis for termination of the Employee's employment under the provision so indicated and (iii) if the Date of Termination is other than the date of receipt of
such notice, specifies the termination date (which date shall be not more than fifteen (15) days after the giving of such notice). The failure by the Employee to set forth in the Notice of
Termination any fact or circumstance which contributes to a showing of Good Reason shall not waive any right of the Employee hereunder or preclude the Employee from asserting such fact or circumstance
in enforcing his rights hereunder. 

        (e)  Date of Termination. During the Employment Period, "Date of Termination" means the date of receipt of the Notice of
Termination or any later date specified therein, as the case may be; provided, however, that
(i) if the Employee's employment is terminated by the Company other than for Cause or Disability, the Date of Termination shall be the date on which the Company notifies the Employee of such
termination and (ii) if the Employee's employment is terminated by reason of death or Disability, the Date of Termination shall be the date of death of the Employee or the Disability Effective
Date, as the case may be. 

        6.    Obligations of the Company upon Termination.    

        (a)  Death. If the Employee's employment is terminated during the Employment Period by reason of the Employee's death, this
Agreement shall terminate without further obligations to the Employee's legal representatives under this Agreement, other than those obligations specifically provided for in this Agreement or the
Employment Agreement (which shall be paid in accordance with their terms) and obligations accrued or earned and vested (if applicable) by the Employee as of the Date of Termination, which shall
include for this purpose (i) the Employee's full Base Salary through the Date of Termination at the rate in effect on the Date of Termination or, if higher, at the highest rate in effect at any
time from the start of the 90-day period preceding the Effective Date through the Date of Termination (the "Highest Base Salary"), (ii) the product of the Annual Bonus paid to the
Employee for the last full fiscal year and a fraction, the numerator of which is the number of days in the current fiscal year through the Date of Termination, and the denominator of which is 365 and
(iii) any compensation previously deferred by the Employee (together with any accrued interest thereon) and not yet paid by the Company and any accrued vacation pay not yet paid by the Company
(such amounts specified in clauses (i), (ii) and (iii) are hereinafter referred to as "Accrued Obligations"). All such Accrued Obligations shall be paid to the Employee's estate or
beneficiary, as applicable, in a lump sum in cash within 30 days of the Date of Termination. In the event that the benefits hereunder are greater than those provided in the Employment Agreement
in the event of death, the benefits hereunder shall be paid superceding the provisions of the Employment Agreement, otherwise the provisions of the Employment Agreement shall govern. Anything in this
Agreement to the contrary notwithstanding, the Employee's family shall be entitled to receive benefits at least equal to the most favorable benefits provided by the Company and any of its subsidiaries
to surviving families of employees of the Company and such subsidiaries under such plans, programs, practices and policies relating to family death benefits, if any, in accordance with the most
favorable plans, programs, practices and policies of the Company and its subsidiaries in effect at any time during the 90-day period immediately preceding the Effective Date or, if more
favorable to the Employee and/or the Employee's family, as in effect on the date of the Employee's death with respect to the Employee. 

        (b)  Disability. If the Employee's employment is terminated by reason of the Employee's Disability, this Agreement shall
terminate without further obligations to the Employee, other than those obligations accrued or earned and vested (if applicable) by the Employee as of the Date of Termination, including for this
purpose, all Accrued Obligations. All such Accrued Obligations shall be paid to the Employee in a lump sum in cash within 30 days of the Date of Termination. In the event that benefits payable
hereunder in the event of termination due to Employee's Disability are greater than those payable under the Employment Agreement, the provisions of this Agreement shall govern and supercede the
provisions of the Employment Agreement; otherwise, the provisions of the 

6

 

Employment Agreement shall govern. Anything in this Agreement to the contrary notwithstanding, the Employee shall be entitled after the Disability Effective Date to receive disability and other
benefits at least equal to the most favorable of those provided by the Company and its subsidiaries to disabled employees and/or their families in accordance with such plans, programs, practices and
policies relating to disability, if any, in accordance with the most favorable plans, programs, practices and policies of the Company and its subsidiaries in effect at any time during the
90-day period immediately preceding the Effective Date or, if more favorable to the Employee and/or the Employee's family, as in effect at any time thereafter prior to the Disability
Effective Date with respect to the Employee. 

        (c)  Cause; Other than for Good Reason. If the Employee's employment shall be terminated for Cause, this Agreement shall
terminate without further obligations to the Employee. If the Employee terminates employment other than for Good Reason, this Agreement shall terminate without further obligations to the Employee,
other than those obligations accrued or earned and vested (if applicable) by the Employee through the Date of Termination, including for this purpose, all Accrued Obligations. All such Accrued
Obligations shall be paid to the Employee in a lump sum in cash within 30 days of the Date of Termination. 

        (d)  Good Reason; Other Than for Cause or Disability. If, during the Employment Period, the Company shall terminate the
Employee's employment other than for Cause, Disability, or death (including termination without cause as provided in the Employment Agreement), or if the Employee shall terminate his employment for
Good Reason and the Employee executes, and does not revoke, a written release, substantially in the form then used by the Company for its executives generally, of any and all claims against the
Company and all related parties with respect to all matters arising out of the Employee's employment by the Company (other than any entitlements under the terms of this Agreement or under any other
plans or programs of the Company in which the Employee participated and under which the Employee has accrued a benefit), or the termination thereof, 

        (i)    the
Company shall pay to the Employee in a lump sum in cash within 30 days after the Date of Termination the aggregate of the following amounts: 

        (A)  to
the extent not theretofore paid, the Employee's Highest Base Salary through the Date of Termination; and 

        (B)  the
product of (x) the Annual Bonus paid to the Employee for the last full fiscal year (if any) ending during the Employment Period or, if higher, the Annual
Bonus paid to the Employee for the last full fiscal year prior to the Effective Date (as applicable, the "Recent Bonus") and (y) a fraction, the numerator of which is the number of days in the
current fiscal year through the Date of Termination and the denominator of which is 365; and 

        (C)  the
product of (x) 1.49 and (y) the sum of (i) the Highest Base Salary and (ii) the Recent Bonus; and 

        (D)  in
exchange for the Employee's obligations under Section 10 of this Agreement, the product of (x) 1.5 and (y) the sum of (i) the Highest Base
Salary and (ii) the Recent Bonus; and 

        (E)  in
the case of compensation previously deferred by the Employee, all amounts previously deferred (together with any accrued interest thereon) and not yet paid by the
Company, and any accrued vacation pay not yet paid by the Company; and 

        (F)  the
Employee shall be entitled to receive a lump-sum cash payment equal to the amount which the Company would have credited to the Employees Company
Contribution Account under the Company's Executive Deferred Compensation Plan (the "Deferred Compensation Plan") during the remainder of the Employment Period if during the remainder of the Employment
Period the Employee had deferred under the Deferred Compensation 

7

 

Plan the average amount of deferral the Employee had elected with respect to the Employee's Compensation for the 12 months immediately preceding the Date of Termination and if the Employee's
annual Compensation during the Employment Period were equal to the sum of the Employee's Highest Base Salary and Recent Bonus. 

        (ii)  for
the remainder of the Employment Period, or such longer period as the Employment Agreement or any plan, program, practice or policy may provide, the Company shall
continue benefits to the Employee and/or the Employee's family at least equal to those which would have been provided to them in accordance with the plans, programs, practices and policies described
in Sections 4(b)(iv) and (vi) of this Agreement if the Employee's employment had not been terminated, including health insurance and life insurance, in accordance with the most favorable
plans, practices, programs or policies of the Company and its subsidiaries during the 90-day period immediately preceding the Effective Date or, if more favorable to the Employee, as in
effect at any time thereafter prior to termination with respect to the Employee and for purposes of eligibility for retiree benefits pursuant to such plans, practices, programs and policies, the
Employee shall be considered to have remained employed until the end of the Employment Period and to have retired on the last day of such period. 

        7.    Non-exclusivity of Rights.    During and after the Employment Period, nothing in this Agreement
shall prevent or limit the Employee's continuing or future participation in any benefit, bonus, incentive or other plans, programs, policies or practices provided by the Company or any of its
subsidiaries and for which the Employee may qualify, nor shall anything herein limit or otherwise affect such rights as the Employee may have under any stock option or other agreements with the
Company or any of its subsidiaries. Amounts which are vested benefits or for which the Employee is otherwise entitled to receive under any plan, policy, practice or program of the Company or any of
its subsidiaries at or subsequent to the Date of Termination shall be payable in accordance with such plan, policy, practice or program. 

        8.    Full Settlement.    The Company's obligation to make the payments provided for in this Agreement and otherwise
to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against the Employee
or others except as specifically provided herein. In no event shall the Employee be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the
Employee under any of the provisions of this Agreement and it is agreed that the Company shall not have any right of set-off for amounts due hereunder should Employee obtain such other
employment. The Company and Employee mutually consent to the resolution by arbitration, in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration
Association, to be held in Atlantic City, New Jersey, of all claims or controversies arising out of this Agreement other than a claim for equitable relief or seeking an injunction. The Company shall
pay the fees and costs of the arbitrator and all other costs in connection with any arbitration, including reasonable legal fees and expenses, unless the arbitrator shall determine that such claim or
controversy was without reasonable basis or that payment of such legal fees and expenses would otherwise be unfair to the Company. 

        9.    Certain Additional Payments by the Company.    

        (a)  Anything
in this Agreement to the contrary notwithstanding, in the event that it shall be determined that any payment or distribution by the Company to or for the
benefit of the Employee, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (the "Payment"), would constitute an "excess parachute payment"
within the meaning of Section 280G of the Code, the Employee shall be paid an additional amount (the "Gross-Up Payment") such that the net amount retained by the Employee after
deduction of any excise tax imposed under Section 4999 of the Code, and any federal, state and local income and employment tax 

8

 

and excise tax imposed upon the Gross-Up Payment shall be equal to the Payment. For purposes of determining the amount of the Gross-Up Payment, the Employee shall be deemed to
pay federal income tax and employment taxes at the highest marginal rate of federal income and employment taxation in the calendar year in which the Gross-Up Payment is to be made and
state and local income taxes at the highest marginal rate of taxation in the state and locality of the Employee's residence (or, if greater, the state and locality in which the Employee is required to
file a nonresident income tax return with respect to the Payment) on the Termination Date, net of the maximum reduction in federal income taxes that may be obtained from the deduction of such
state and local taxes. 

        (b)  All
determinations to be made under this Section 9 shall be made by the Company's independent public accountant immediately prior to the Change of Control (the
"Accounting Firm"), which firm shall provide its determinations and any supporting calculations both to the Company and the Employee within 10 days of the Termination Date. Any such
determination by the Accounting Firm shall be binding upon the Company and the Employee. Within five days after the Accounting Firm's determination, the Company shall pay (or cause to be paid) or
distribute (or cause to be distributed) to or for the benefit of the Employee such amounts as are then due to the Employee under this Agreement. 

        (c)  The
Employee shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the
Gross-Up Payment (taking into account any amounts theretofore already paid by the Company). Such notification shall be given as soon as practicable but no later than ten business days
after the Employee knows of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Employee shall not pay such claim prior
to the expiration of the thirty-day period following the date on which it gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect
to such claim is due). If the Company notifies the Employee in writing prior to the expiration of such period that it desires to contest such claim, the Employee shall: 

          (i)  give
the Company any information reasonably requested by the Company relating to such claim; 

        (ii)  take
such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting
legal representation with respect to such claim by an attorney reasonably selected by the Company; 

        (iii)  cooperate
with the Company in good faith in order to effectively contest such claim; and 

        (iv)  permit
the Company to participate in any proceedings relating to such claim; 

provided,
however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and
hold the Employee harmless, on an after-tax basis, for any Excise Tax, income tax or employment tax, including interest and penalties, with respect thereto, imposed as a result of such
representation and payment of costs and expenses. Without limitation on the foregoing provisions of this Section 9, the Company shall control all proceedings taken in connection with such
contest and, at its sole option, may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole
option, either direct the Employee to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and the Employee agrees to prosecute such contest to a determination
before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided further, however, that if the Company directs the
Employee to pay such claim and sue for a refund the Company shall advance the amount of such payment to the Employee, on an interest-free basis and shall indemnify and hold the Employee
harmless, on an after-tax basis, from any Excise Tax, 

9

 

income tax or employment tax, including interest or penalties with respect thereto, imposed with respect to such advance or with respect to any imputed income with respect to such advance; and
provided further that any extension of the statute of limitations relating to payment of taxes for the taxable year of the Employee with respect to which such contested amount is claimed to be due is
limited solely to such contested amount. Furthermore, the Company's control of the contest shall be
limited to issues with respect to which a Gross-Up Payment would be payable hereunder and the Employee shall be entitled to settle or contest, as the case may be, any other issue raised by
the Internal Revenue Service or any other taxing authority. 

        (d)  If,
after the receipt by the Employee of an amount advanced by the Company pursuant to this Section, the Employee becomes entitled to receive any refund with respect to
such claim, the Employee shall (subject to the Company's complying with the requirements of subsection (b)) promptly pay to the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by the Employee of an amount advanced by the Company pursuant to this Section, a determination is made that the Employee shall
not be entitled to any refund with respect to such claim and the Company does not notify the Employee in writing of its intent to contest such denial of refund prior to the expiration of thirty days
after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of
Gross-Up Payment required to be paid. 

        (e)  All
of the fees and expenses of the Accounting Firm in performing the determinations referred to in subsections (b) and (c) above shall be borne solely by
the Company. The Company agrees to indemnify and hold harmless the Accounting Firm of and from any and all claims, damages and expenses resulting from or relating to its determinations pursuant to
subsections (b) and (c) above, except for claims, damages or expenses resulting from the gross negligence or willful misconduct of the Accounting Firm. 

        10.    Confidential Information; Non-solicitation; Non-competition.    In exchange for the
Company agreeing to the payment to the Employee provided under subsection (d)(i)(D) of Section 6, the Employee agrees as follows: 

        (a)  The
Employee shall hold in a fiduciary capacity for the benefit of the Company all secret or confidential information, knowledge or data, customer information, supplier
information, cost and pricing information, marketing and sales techniques, strategies and programs, computer programs and software and financial information relating to the Company or any of its
affiliated companies and their respective businesses that the Employee obtains during the Employee's employment by the Company or any of its affiliated companies and that is not public knowledge
(other than as a result of the Employee's violation of this subsection (a) of Section 10) ("Confidential Information"). The Employee shall not communicate, divulge or disseminate
Confidential Information at any time during or after the Employee's employment with the Company, except in the good faith performance of his duties hereunder, with the prior written consent of the
Company or as otherwise required by law or legal process. In no event shall an asserted violation of the provisions of this paragraph (a) of Section 10 constitute a basis for deferring
or withholding any amounts otherwise payable to the Employee under this Agreement. 

        (b)  For
a period of one year after the expiration or termination of the Employee's employment with the Company, the Employee will not, except with the prior written consent
of the Board, directly or indirectly, own, manage, operate, join, control, finance or participate in the ownership, management, operation, control or financing of, or be connected as an officer,
director, employee, partner, principal,
agent, representative, consultant or otherwise with, or use or permit Employee's name to be used in connection with, any business or enterprise which is engaged in any business that is competitive
with any business or enterprise in which the Company is engaged at the Date of Termination or expiration of the Employment Period. In addition, the Employee agrees that he will not, for a period of
two years 

10

 

after the expiration or termination of the Employee's employment with the Company, without the prior written consent of the Company, whether directly or indirectly, employ, whether as an employee,
officer, director, agent, consultant or independent contractor, or solicit the employment of, any managerial or higher level person who is or at any time during the previous twelve months was an
employee, representative, officer or director of the Company or any of its subsidiaries. 

        (c)  The
Employee acknowledges and agrees that the restrictions contained in this Section are reasonable and necessary to protect and preserve the legitimate interests,
properties, goodwill and business of the Company, that the Company would not have entered into this Agreement in the absence of such restrictions and that irreparable injury will be suffered by the
Company should the Employee breach any of those provisions. Employee represents and acknowledges that (i) the Employee has been advised by the Company to consult Employee's own legal counsel in
respect of this Agreement, and (ii) that the Employee has had full opportunity, prior to execution of this Agreement, to review thoroughly this Agreement with the Employee's counsel. The
Employee further acknowledges and agrees that a breach of any of the restrictions in this Section cannot be adequately compensated by monetary damages. The Employee agrees that the Employee's right to
the payments specified above in consideration for his undertakings under this Section shall be forfeited and Company shall be entitled to preliminary and permanent injunctive relief, without the
necessity of proving actual damages, as well as an equitable accounting of all earnings, profits and other benefits in the event of any violation of this Section, which rights shall be cumulative and
in addition to any other rights or remedies to which the Company may be entitled; provided, however, that the foregoing remedies shall be conditioned upon the Company providing the Employee with at
least 30 days written notice of its good faith belief that a violation of the Employee's undertakings hereunder has occurred and Employee failing to cease any such prohibited activity within
30 days after such written notice is given. In the event that any of the provisions of this Section should ever be adjudicated to exceed the time, geographic, service, or other limitations
permitted by applicable law in any jurisdiction, it is the intention of the parties that the provision shall be amended to the extent of the maximum time, geographic, service, or other limitations
permitted by applicable law, that such amendment shall apply only within the jurisdiction of the court that made such adjudication and that the provision otherwise be enforced to the maximum extent
permitted by law. The Employee irrevocably and unconditionally (i) agrees that any suit, action or other legal proceeding arising out of this Section, including without limitation, any action
commenced by the Company for preliminary and permanent injunctive relief and other equitable relief, may be brought in the United States District Court for the District of Nevada, or if such court
does not have jurisdiction or will not accept jurisdiction, in any court of general jurisdiction in Las Vegas, Nevada, (ii) consents to the non-exclusive jurisdiction of any such
court in any such suit, action or proceeding, and (iii) waives any objection which the Employee may have to the laying of venue of any such suit, action or proceeding in any such court. The
Employee also irrevocably and unconditionally consents to the service of any process, pleadings, notices or other papers in a manner permitted by the notice provisions of Section 12 hereof. 

        11.    Successors.    

        (a)  This
Agreement is personal to the Employee and without the prior written consent of the Company shall not be assignable by the Employee otherwise than by will or the
laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Employee's legal representatives. 

        (b)  This
Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. 

        (c)  The
Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that 

11

 

the Company would be required to perform it if no such succession had taken place. As used in this Agreement, "Company" shall mean the Company as hereinbefore defined and any successor to its
business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise. 

        12.    Miscellaneous.    

        (a)  This
Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without reference to principles of conflict of laws. The captions
of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties
hereto or their respective successors and legal representatives. 

        (b)  All
notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return
receipt requested, postage prepaid, addressed as follows: 

If to the Employee:

Harry C. Hagerty III

c/o Park Place Entertainment

3930 Howard Hughes Parkway

Las Vegas, NV 89109 

If to the Company:

Park Place Entertainment Corporation

3930 Howard Hughes Parkway

Las Vegas, NV 89109

Attention: General Counsel 

or
to such other address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually received by the addressee. 

        (c)  The
invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. 

        (d)  The
Company may withhold from any amounts payable under this Agreement such Federal, state or local taxes as shall be required to be withheld pursuant to any applicable
law or regulation. 

        (e)  The
Employee's failure to insist upon strict compliance with any provision hereof shall not be deemed to be a waiver of such provision or any other provision thereof. 

        (f)    The
Employee and the Company acknowledge that, except as may be otherwise provided in the Employment Agreement, the employment of the Employee by the Company is "at
will", and, prior to the Effective Date, may be terminated by either the Employee or the Company at any time. Upon a termination of the Employee's employment or upon the Employee's ceasing to be an
officer of the Company, in each case, prior to the Effective Date, there shall be no further rights under this Agreement. 

        (g)  The
Company represents and warrants that: (i) it is fully authorized and empowered to enter into this Agreement; (ii) its Board of Directors has approved
this Agreement; and (iii) the performance of its obligations under this Agreement will not violate any agreement between it and any other person, firm or organization. 

        (h)  This
Agreement may be executed in two or more counterparts and by facsimile, all of which when taken together shall constitute a signed agreement. 

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        IN
WITNESS WHEREOF, the Employee has hereunto set his hand and, pursuant to the authorization from its Board of Directors, the Company has caused these presents to be executed in its
name on its behalf, all as of the day and year first above written. 

	 	 	EMPLOYEE:
	

 	
 	

 	
 	

 
	 	 	
 Harry C. Hagerty III
	

 	
 	

 	
 	

 
	 	 	PARK PLACE ENTERTAINMENT CORPORATION
	

 	
 	

 	
 	

 
	 	 	By:	 	 
	 	 	 	 	

	 	 	Name:	 	Thomas E. Gallagher
	 	 	Title:	 	President and CEO

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QuickLinks

Exhibit 10.46

CHANGE OF CONTROL AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}]]