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EMPLOYMENT AGREEMENT    
  

        THIS
EMPLOYMENT AGREEMENT ("Agreement") is made and effective as of the 1st day of November, 2001, by and between PARK PLACE ENTERTAINMENT CORPORATION, a Delaware corporation (the
"Company"), and WALLACE R. BARR ("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 continues to employ Executive in the capacity of Executive Vice President and Chief Operating 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. Other than as provided in Paragraph 3D below, this Agreement supercedes in its entirety that certain Executive
Employment Agreement (the "Prior Agreement") by and between Executive and Company dated March 15, 1999. 

        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. 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 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 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 of 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, 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 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 at the Company's east coast
office located in Atlantic City, New Jersey, and such other locations as may be required by the nature of Executive's responsibilities. It is understood that Executive maintains his primary residence
in Linwood, NJ and it is agreed that he shall not be required to relocate his primary residence to Las Vegas, 

 

Nevada or any other location. While performing his duties in Las Vegas, Executive shall have the use of a company vehicle for his business and personal use. 

	2.
	Term.

        The
term of this Agreement (the "Term") shall begin on the effective date stated above and shall continue until March 31, 2006. The Term shall automatically renew beginning
April 1, 2006 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 $800,000 (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. In addition, Executive's Base Salary for the period July 1, 2001 through October 31, 2001 shall be increased retroactively to the same annual rate. During the
Term, the Base Salary shall be reviewed for possible increase (but not decrease) annually in accordance with the Company's then applicable merit policies or as otherwise determined by the CEO and the
Board in its discretion. 

        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 Long-Term Incentive Plans as in effect from time
to time in accordance with the terms of such Plans. Effective upon the date hereof, Executive has been granted 120,000 stock retention units pursuant to the provisions of the Company's Supplemental
Retention Plan dated November 1, 2001. Executive shall be eligible for additional annual grants in the discretion of CEO and the Board. Except as otherwise provided in Paragraphs 7C and 9, the
provisions of that Plan shall govern such units. 

        D.    All
stock options granted pursuant to the Prior Agreement shall continue to be governed by the Company's Stock Option Plan. In addition, for all years during the Term,
Executive shall be entitled to annual grants of stock options in accordance with the Company's Stock Option Plan in effect from time to time as and when granted for other senior executives. The amount
of any such grants shall be subject to the absolute discretion of the Board. In consideration of Executive's agreement to enter into this Agreement and the provisions contained herein, Executive has
been granted options to purchase an aggregate of 128,000 shares of the Company's common stock in accordance with the Stock Option Agreement dated October 29, 2001 between the Company and the
Executive. Except as otherwise expressly provided in Paragraph 9 below, such options shall vest and be governed by the provisions of the Option Plan and such Option Agreement. 

	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. 

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        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 the amount of
$2,200,000. 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, 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 involves any
gaming venture, Indian gaming, river boat gaming or other gaming, casino or similar business within any foreign country or any state of the United States (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. 

        (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 as set forth in Paragraphs 8C(3) and 9C below) 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 180 days thereafter as to
subparagraph 6A(1) and for one year thereafter as to subparagraphs 6A(2) and 6A(3). In the event that Executive is terminated pursuant to paragraph 8 hereof, without Cause, the provisions of
subparagraph 6A(1), 6A(2) and 6A(3) shall be operative 

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during Executive's employment with the Company and for a period of 180 days after the termination date. In the event that the Special Retirement Provisions of Paragraph 9 become
applicable, the provisions of subparagraphs 6A(1), 6A(2) and 6A(3) shall be operative during the Term and for an additional period equal to the portion of the vesting period of any options or stock
retention units that has been accelerated pursuant to Paragraph 9, but not in excess of one year for such additional period. 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 the 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 New Jersey,
or if such court does not have jurisdiction or will not accept jurisdiction, in any court of general jurisdiction in Atlantic City, New Jersey, (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. 

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        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. 

	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 through age 65, 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. 

        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. 

        C.    If
Executive's employment hereunder is terminated by reason of his illness or incapacity as provided in A immediately above, or his death as provided in B immediately
above, then all remaining unvested options granted to Executive under the Prior Agreement, together with the portion of any options granted pursuant Paragraph 3D that would otherwise have
become vested as of the applicable anniversary date for the year in which such termination occurred, shall thereupon become vested. In addition, any unvested stock retention units granted pursuant to
Paragraph 3C, including those issued effective upon the date hereof and all future stock retention unit grants, shall become vested. 

	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 

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        (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 Nevada or New Jersey, 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. 

        C.    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) an amount equal to Base Salary for the balance of the Term or for a period of twelve months, whichever is greater, paid in a lump sum
no later than 10 days after termination, plus (b) an 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, paid in a lump sum no later than 10 days after termination; 

        (2)  Any
remaining unvested options or stock retention units shall be vested, and 

        (3)  Executive
and family shall be entitled to continuation of health (including prescription) and dental benefits for the remaining portion of the otherwise applicable Term
after which the provisions of Section 9C shall apply, regardless of Executive's age. 

        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 Section, 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. 

        D.    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.
	Special Retirement Provisions

        In
the event that the Term of the Agreement is not renewed by the Executive or the Company for an additional term as provided in Paragraph 2 above, then, effective upon the
expiration of the then applicable Term, such non-renewal may, at the option of the Executive, be deemed to be a "retirement" and the following provisions shall apply upon the Executive's
execution, and non-revocation, of the Release: 

        A.    If
at the effective date of such retirement, the Executive is at least 62 years old, then 100% of all remaining options and stock retention units previously
granted to Executive shall be fully vested as of such date. 

        B.    If
at the effective date of such retirement, the Executive is at least 60 years old but less than 62, then: 

        (1)  If
the decision not to renew the Term is mutually agreed by the Executive and the Company, then 100% of all remaining options and stock retention units shall be fully
vested as of such retirement date; and 

        (2)  If
the decision not to renew the Term was solely by the Executive (rather than mutual), then 50% of such remaining options and stock retention units shall be fully
vested as of such date if Executive's age is less than 61, and 75% if Executive's age is greater than 61 and less than 62. 

        C.    In
the event of any such retirement and the Executive is at least 60 years old on such retirement date, health (including prescription) and dental benefits for
Executive and family shall continue until age 65 at the Company's expense unless otherwise available to Executive and family in connection with any employment of Executive by any other employer in any
other capacity. 

	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") which 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 

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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 Section 12): 

	If to the Company:	 	Park Place Entertainment Corporation

3930 Howard Hughes Parkway

Las Vegas, NV 89109

Attention: General Counsel
	

If to Executive:	
 	

Wallace R. Barr

222 Arlington Avenue

Linwood, NJ 08221

	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 him 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 New Jersey, without reference to such State's principles of conflict of
laws. 

	15.
	Tax Withholding. 

        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.
	Legal Fees. 

        In
the event that Executive is required to commence legal action to enforce the provisions of this Agreement and Employee prevails in such action, Executive shall pay Executive's costs
and expenses, including reasonable attorneys' fees incurred in such action. 

	18.
	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. 

8

 

        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:
	

 	
 	

    
 Wallace R. Barr

9

 
 
 

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 November 1, 2001 (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 ("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 which 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 him 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 

10

 

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	
 	

    

11

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EMPLOYMENT AGREEMENT

ANNEX 1 GENERAL RELEASEQuickLinks
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Exhibit 10.36    
  

 
  EXECUTIVE EMPLOYMENT AGREEMENT    
  

        THIS EXECUTIVE EMPLOYMENT AGREEMENT ("Agreement") is made and effective as of the first day of January, 1999, by
and between PARK PLACE ENTERTAINMENT CORPORATION, a Delaware corporation ("Employer") and SCOTT A. LA
PORTA ("Employee"). 

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

        1.    Employment    

        A.    Employer
hereby employs Employee 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 ("CEO") of Employer shall from time to time determine, reporting directly and solely to Employer's CEO, and Employee hereby accepts such employment, all
upon and subject to the terms and conditions herein set forth. 

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

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

        (1)  Render
services of a business, professional or commercial nature to any person or entity other than as provided in this Agreement, directly or indirectly, whether for
compensation or otherwise, except that this prohibition shall not be construed to prevent Employee from investing his assets in such form or manner as will not require any services on the part of
Employee in the operation of the affairs of the companies in which such investments are made and which are not in violation of subparagraph (2) immediately below, or 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 Employer 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, except that the ownership of not more than one percent (1%) of
the stock of any one or more publicly traded corporations shall not be deemed violative of this subparagraph (2); 

        (3)  Be
engaged by any person or entity which conducts business with or acts as consultant or advisor to Employer 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 or indirectly, except that ownership of not more than one percent (1%) of the stock of
any one or more publicly traded corporations shall not be deemed violative of this subparagraph (3). 

        D.    Employee
acknowledges and agrees that he shall perform his duties hereunder at such principal business location in Nevada as Employer's CEO may from time to time
determine. 

        2.    Term.    The term of this Employment Agreement ("Term") shall begin on the effective date stated above and shall
continue for four (4) years and 16 days from such date; and unless the Term is extended by mutual agreement, the Term shall continue thereafter from month-to-month until
termination by either party in his or its sole discretion upon thirty (30) days written notice. 

 

        3.    Compensation.    

        A.    In
consideration of the services to be rendered by Employee hereunder, Employer agrees to pay or cause to be paid to Employee, and Employee agrees to accept the sum of
$450,000 (the "Base Salary") for each twelve (12) month period following the effective date of this Agreement, which shall be paid on regularly recurring pay periods established by Employer.
The Base Salary shall be subject to increase (not decrease) pursuant to periodic review by Employer, provided that any determination to increase the
Base Salary shall be within Employer's sole discretion. 

        B.    It
is further understood by both parties that, in addition to the Base Salary, a bonus payment will be made to Employee on an annual basis in such amount as is determined
by Employer in accordance with Employer's bonus plan as then in effect. 

        4.    Vacation and Other Benefits    

        A.    Employee
shall be entitled to a reasonable vacation each year of his employment hereunder, 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 Employer of comparable status and tenure, and
consistent with Employer's policies for executive employment benefits. Employer may, at its sole discretion, change such benefits policies. 

        B.    Employee
shall be awarded an option to acquire an aggregate of five hundred thousand (500,000) shares of Employer's common stock, which shall be exercisable, while his
employment hereunder continues in effect and subject to the exception provided in paragraph 7C hereof, at the rate of one hundred twenty-five thousand (125,000) shares per year, on
the first anniversary date of the grant and each year thereafter on such anniversary date, for a total of four (4) years, all at the same per share price equal to the "strike price" of such
stock as fixed by the Board of Directors on the date of the formal grant of such option. 

        5.    Expenses.    

        Employer
shall pay or cause to be paid all reasonable expenses incurred by Employee in the performance of his responsibilities and duties for Employer hereunder, as well those reasonably
incurred in the promotion of Employer's business, including but not limited to the costs of licensing or qualification as may be required by any gaming jurisdiction. Employee shall submit to Employer
periodic statements of all expenses so incurred. Subject to such audits as Employer may deem appropriate, Employer shall, promptly and in the ordinary course, reimburse Employee the full amount of any
such expenses advanced by Employee. 

        6.    Covenants and Confidential Information.    

        A.    Employee
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 which is engaged in
any manner in the operation of any gaming venture(s), respecting casinos, Indian gaming, river boat gaming, or otherwise, within any county of any state in which there is located any gaming facility
owned, managed or under development to be owned or managed by Employer ("Facility"), determined as of the date Employee ceases to be employed hereunder;  provided, that the ownership of not more than one
percent (1%) of the stock of any one or more publicly traded corporations shall not be deemed a
violation of this subparagraph (1); 

2

 

        (2)  Induce
any person who is an employee, officer or agent of Employer or of any subsidiary or affiliate of Employer, to terminate such relationship. 

        (3)  Employ,
assist in employing, or otherwise be associated in business with any present or former employee or officer of Employer or of any subsidiary or affiliate of
Employer, including without limitation those who commence such positions with Employer or any such subsidiary or affiliate, after the effective date hereof. 

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

        B.    The
provisions of subparagraphs 6A(1) through 6A(4) hereof shall be operative throughout the Term except as provided in the following sentences. In the event
(i) of a "Change in Control", the provisions of subparagraphs 6A(1), 6A(2) and 6A(3) shall be operative only so long as Employee remains an employee of Employer, and (ii) Employee is
terminated for "Cause" (as defined in paragraph 8 hereof), the provisions of subparagraphs 6A(1), 6A(2) and 6A(3) shall be operative during the Term and for a period of one (1) year
thereafter. All obligations created by the terms of subparagraph 6A(4) are of a
continuing nature and shall remain in effect at all times during Employee's period of employment hereunder and for a period of five (5) 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 Employee, then the restrictions and limitations of subparagraph 6A(4) shall not apply to such particular information. 

        C.    Employee
expressly agrees and understands that the remedy at law for any breach by him of any of the provisions of this paragraph 6 will be inadequate and that the
damages flowing from such breach are not readily susceptible of being measured in monetary terms. Accordingly, it is acknowledged that Employer shall be entitled to immediate injunctive relief, and if
the court so permits may obtain a temporary order restraining any threatened or further breach. Nothing contained in this paragraph 6 shall be deemed to limit Employer's remedies at law or in equity
for any breach by Employee of any of the provisions of this paragraph 6 which may be pursued or availed of by Employer. Any covenant on Employee's part contained in this paragraph 6
which may not be specifically enforceable, shall nevertheless, if breached, give rise to a cause of action for monetary damages. 

        D.    Employee
has carefully considered the nature and extent of the restrictions upon him and the rights and remedies conferred upon Employer under this paragraph 6,
and hereby acknowledges and agrees that the same are reasonable in time and territory, are designed to eliminate competition which otherwise would be unfair to Employer, do not stifle the inherent
skill and experience of Employee, would not operate as a bar to Employee's sole means of support, are fully required to protect the legitimate interests of Employer, and do not confer a benefit upon
Employer disproportionate to the detriment to Employee. 

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

        F.    If
any of the covenants contained in this paragraph 6 are determined by a court of competent jurisdiction to be unenforceable or invalid because of the geographic
scope or time duration of such restrictions, such provisions shall be deemed retroactively modified to provide for the maximum geographic scope and time duration that would permit such provisions to
be valid and enforceable. 

3

 

However, no such retroactive modification shall affect any of Employer's rights hereunder arising out of the breach of any such covenant, including without limitation Employer's right to terminate
this Agreement without further liability to Employee. The parties hereby authorize a court of competent jurisdiction to reform this Agreement to give effect to the retroactive modification provisions
contained in this paragraph 6F. 

        7.    Illness, Incapacity or Death During Employment.    

        A.    If
Employee is unable to perform services hereunder by reason of illness or incapacity resulting in a failure to discharge his duties under this Agreement for six
(6) or more consecutive months, then upon thirty (30) days notice, Employer may terminate the employment of Employee under this Agreement, and upon such termination Employee shall be
paid (i) his Base Salary on a pro-rata basis to the date of termination through the thirty (30) day notice period, and (ii) an amount equal to his prior year's bonus
on a pro-rata basis to the date of termination through the thirty (30) day notice period. 

        (1)  In
the event of such termination, Employee shall have the right to the assignment of any and all Employer 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 Employee. 

        (2)  In
the event that Employer elects to terminate this Agreement by reason of Employee's illness or incapacity, then Employee shall be entitled to all Long Term Disability
("LTD") benefits provided to senior officers of Employer. The benefit amount to which Employee shall be entitled hereunder shall be 60% of his Base Salary as of the date of termination, without
reference to set-offs or caps existing in any LTD plan. 

        B.    In
the event of Employee's death, all obligations of Employer under this Agreement shall terminate other than the payment of (i) any unpaid portion of Employee's
Base Salary on a pro-rata basis accrued to the date of death, (ii) reimbursement of all expenses reasonably incurred by Employee in performing his responsibilities and duties for
Employer prior to and including such date, (iii) applicable insurance and other group benefits proceeds, and (iv) an amount equal to his prior year's bonus on a pro-rata
basis to the date of termination. 

        C.    If
Employee's employment hereunder is terminated by reason of his illness or incapacity as provided in A immediately above or his death as provided in B immediately
above, then Employee or his personal representative(s), as applicable, shall have the right to exercise the option for 125,000 shares of Employer's common stock on the applicable anniversary date for
the year in which the employment was terminated, as otherwise provided in paragraph 4B hereof. 

        8.    Termination for Cause; Without Cause.    

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

        (1)  Employee'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)  Employee's
material breach of any provision of this Agreement; or 

        (3)  Employee's
failure to qualify (or having so qualified being thereafter disqualified or suspended) under any suitability or licensing requirement to which Employee may be
subject by reason of his position with Employer or any of its affiliates or subsidiaries, under the laws of 

4

 

Nevada, except that any such failure to qualify or disqualification or suspension resulting from Employer's corporate conduct, rather than Employee's
individual conduct, shall not constitute "Cause" hereunder. 

        B.    Any
termination by reason of the foregoing shall not be in limitation of any other right or remedy Employer may have under law, pursuant to this Agreement or otherwise. 

        C.    In
the event Employer exercises its right under this paragraph 8 to terminate this Agreement for Cause, Employee shall have the right to challenge such action by
seeking arbitration. Such arbitration proceeding shall commence by Employee filing a written demand therefor with the American Arbitration Association ("AAA"), Las Vegas office, within twenty
(20) days of receipt of Employer's notice of termination. Subject to the provisions of paragraph 12 hereof, such arbitration shall be governed by AAA Labor Arbitration Rules. 

        D.    The
employment of Employee under this Agreement may be terminated without Cause at any time. In any such case Employer shall have no liability arising out of such
termination except for the following severance obligations to Employee: Employee shall have the same rights provided in paragraphs 9B and 9C hereof, as if such termination without Cause had occurred
following a Change in Control. 

        9.    Optional Termination Upon Change in Control.    

        A.    In
the event there is a Change in Control of Employer, Employee may, at his option, terminate this Agreement at any time thereafter upon thirty (30) days written
notice to Employer. If Employee exercises this right to terminate, no later than the last day of his employment, he shall be paid a lump sum amount equal to twelve (12) months Base Salary
within ten (10) days thereafter. 

        B.    In
the event there is a Change in Control of Employer and the successor in control terminates this Agreement without Cause, then in lieu of the payment provided for in A
immediately above, Employee shall be paid a lump sum amount equal to (i) twenty-four (24) months Base Salary or his Base Salary for
the balance of the Term, whichever is greater, plus (ii) the greater of the average of the bonuses, if any, paid to Employee by Employer for the three (3) prior years or the amount of
the bonus, if any, paid to Employee by Employer for the prior year, within ten (10) days thereafter. If the successor in control changes Employee's title, compensation or reporting
responsibilities, or substantially changes his duties or functions from those which he previously performed hereunder, the successor in control shall be deemed to have terminated Employee's services
without Cause. 

        C.    In
any case where this Agreement is terminated pursuant to paragraph 9A or paragraph 9B hereof, all of Employee's stock options provided for in
paragraph 4B hereof which have not then been exercised shall immediately and automatically become exercisable by Employee, in whole or in part at any time and from time to time thereafter, at
the per share price described in paragraph 4B hereof. 

        D.    For
purposes of this Agreement, a "Change in Control" means a change in control of Employer of a nature that would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934 as in effect on the effective date of this Agreement (the "Exchange Act"), whether or not Employer is
then subject to such reporting requirement; provided that, without limitation, such a Change in Control shall be deemed to have occurred if: 

        (1)  Arthur
M. Goldberg ceases to be CEO of Employer; 

        (2)  any
"person" (as defined in subsections 13(d) and 14(d) of the Exchange Act) other than Arthur M. Goldberg or any person with which Arthur M. Goldberg is affiliated or
of which he is a part, is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of Employer representing 20% or
more of the combined voting power of Employer's then outstanding securities; 

5

 

        (3)  during
any period of two (2) consecutive years or less (not including any period prior to the effective date of this Agreement) there shall cease to be a majority
of the Board of Directors of Employer comprised of Continuing Directors (as defined below); or 

        (4)  the
stockholders of Employer approve (i) a merger or consolidation of Employer with any other corporation, other than a merger or consolidation that would result
in the voting securities of Employer outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving
entity) at least 80% of the combined voting power of the voting securities of Employer or such surviving entity outstanding immediately after such merger or consolidation, or (ii) a plan of
complete liquidation of Employer or an agreement for the sale or other disposition by Employer of all or substantially all of its assets. 

        As
used herein, the term "Continuing Directors" means individuals who constitute the Board of Directors of Employer as of the effective date of this Agreement and any new director(s)
whose election by such Board or nomination for election by Employer's stockholders was approved by a vote of at least two-thirds of the directors then in office who either were directors
as of the effective date of this Agreement or whose election or nomination for election was previously so approved. 

        E.    (1)
If it shall be determined that any payment, distribution or benefit received or to be received by Employee from Employer ("Payments") would be subject to the excise
tax imposed by Section 4999 of the Internal Revenue Code (the "Excise Tax"), then Employee shall be entitled to receive an additional payment (the "Excise Tax Gross-Up Payment") in
an amount such that the net amount retained by Employee, after the calculation and deduction of any Excise Tax on the Payments and any federal, state and local income and employment taxes and excise
tax on the Excise Tax Gross-Up Payment provided for in this paragraph 9E, shall be equal to the Payments. In determining this amount, the amount of the Excise Tax
Gross-Up Payment attributable to federal income taxes shall be reduced by the maximum reduction in federal income taxes that could be obtained by the deduction of the portion of the Excise
Tax Gross-Up Payment attributable to state and local income and employment taxes. Finally, the Excise Tax Gross-Up Payment shall be reduced by income, employment or excise tax
withholding payments made by Employer or any affiliate of any federal, state or local taxing authority with respect to the Excise Tax Gross-Up Payment that was not deducted from
compensation payable to Employee. 

        (2)  All
determinations required to be made under this paragraph 9E, including whether and when an Excise Tax Gross-Up Payment is required and the amount
of such Excise Tax Gross-Up Payment and the assumptions to be utilized in arriving at such determination, except as specified in subparagraph 9E(1) hereof, shall be made by Employer's
independent auditors (the "Accounting Firm"), which shall provide detailed supporting calculations both to Employer and Employee within fifteen (15) business days after Employer makes any
Payments to Employee. The determination of tax liability made by the Accounting Firm shall be subject to review by Employee's tax advisor, and, if Employee's tax advisor does not agree with the final
determination reached by the Accounting Firm, then the Accounting Firm and Employee's tax advisor shall jointly designate a nationally recognized public accounting firm, which shall make the final
determination. All fees and expenses of the accountants and tax advisors retained by either Employee or Employer, or by both pursuant to this subparagraph 9E(2), shall be borne by Employer. Any Excise
Tax Gross-Up Payment, as determined pursuant to this paragraph 9E, shall be paid by Employer to Employee within five (5) days after Employer's receipt of the final
determination. Any final determination by a jointly designated public accounting firm shall be binding upon Employer and Employee, and not subject to appeal. 

        (3)  As
a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination hereunder, it is possible that Excise Tax
Gross-Up Payments will not have been made by Employer that should have been made consistent with the calculations required to be 

6

 

made hereunder ("Underpayment"). In the event that Employee is thereafter required to make a payment of any Excise Tax, any such Underpayment calculated in accordance with and in the same manner as
the Excise Tax Gross-Up Payment in subparagraph 9E(1) hereof shall be promptly paid by Employer to or for the benefit of Employee. In the event that the Excise Tax Gross-Up
Payment
exceeds the amount subsequently determined to be due, such excess shall constitute a loan from Employer to Employee which shall be repaid in full, together with interest thereon at the rate provided
in Section 1274(b)(2)(B) of the Code, on the (fifth) 5th day after written demand by Employer. 

        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 Employer and Employee under this Agreement shall be binding upon and enure to the benefit of, and be enforceable by and against, the parties hereto and
their respective heirs, personal representations, and successors and assigns. 

        12.    Attorneys' Fees.    

        In
the event Employee is required to commence legal action to enforce the provisions of this Agreement and Employee prevails in such action, Employer shall pay Employee's costs and
expenses, including reasonable attorneys' fees, incurred in such action. 

        13.    Notices.    

        Any
notice, request, demand, waiver, consent, approval or other communication (a "Notice") which 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 13): 

	If to Employer:	 	Park Place Entertainment Corporation

26 Main Street

Chatham, New Jersey 07928

Attention: General Counsel
	

If to Employee:	
 	

Scott A. LaPorta

2203 Ocean Avenue

#107

Santa Monica, California 90405

        14.    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 violation(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 him or it
under the circumstances. 

7

 

        15.    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. 

        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 Employer and Employee 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. 

	 	 	Employer:
	

 	
 	

PARK PLACE ENTERTAINMENT CORPORATION
	

 	
 	

By:	
 	

/s/ ARTHUR M. GOLDBERG
 Arthur M. Goldberg
 Chief Executive Officer
	

 	
 	

Employee:
	 	 	/s/ SCOTT A. LAPORTA
 Scott A. LaPorta

8

AGREEMENT  

        THIS AGREEMENT, made and entered into on this 30th day of January, 2002, by and between Park Place Entertainment Corporation, a Delaware corporation (the
"Company"), with a principal office in Las Vegas, NV, and Scott A. LaPorta, an individual residing at 1940 Glenview Drive, Las Vegas, Nevada ("LaPorta"), reads as follows: 

        I.    RECITALS    

        1.    The
Company currently employs LaPorta pursuant to an employment agreement entered into as of January 1, 1999 (the "Employment Agreement"). LaPorta has exercised a
voluntary termination right under the Employment Agreement and accordingly, the Company and LaPorta have mutually agreed that LaPorta will resign as the Company's Executive Vice President and Chief
Financial Officer and the Employment Agreement will terminate, except as specifically provided below, on January 31, 2002 (the "Resignation Date"), but that LaPorta will serve as Special
Advisor to the Company's Chief Executive Officer (the "CEO") until December 31, 2002 (the "Termination Date"), when LaPorta will terminate all employment with the Company. 

        2.    The
Company and LaPorta wish to enter into this Agreement to supercede the Employment Agreement, except as specifically provided below. 

        II.    SUBSTANTIVE PROVISIONS    

        In
consideration of the mutual promises contained in this Agreement, the Company and LaPorta, intending to be legally bound, agree as follows: 

        1.    The
Company and LaPorta agree that LaPorta will resign all executive positions with the Company and that the Employment Agreement is terminated and superceded by this
Agreement, except to the extent set forth below, all effective on the Resignation Date. Beginning on February 1, 2002, the parties further agree that LaPorta shall continue in employment and
perform such duties for the Company as Senior Advisor to, and in the manner reasonably directed by, the CEO, and shall end his employment on the Termination Date. Prior to the Termination Date,
LaPorta shall be permitted to accept another position and the services required by the CEO shall be designed not to unreasonably interfere with LaPorta's ability to perform in a new position;
provided, however, that, in any event, LaPorta agrees to
cooperate with the Company in providing information or knowledge, and to permit his deposition to be taken, in connection with any existing or future litigation against the Company, whether
administrative, civil or criminal in nature. The Company shall pay for or reimburse LaPorta for any reasonable and documented expenses. 

        2.    In
consideration of the employment under Section 1, the obligations undertaken by LaPorta under Section 4, the Company shall pay or provide to LaPorta (or,
in the event of his death, his estate), the following amounts and benefits, subject to reduction for applicable employment and income tax withholdings and deductions: 

        (a)  A
monthly salary through the Resignation Date equal to current base salary (as adjusted) and compensation for the period immediately following the Resignation Date and
through the Termination Date, of $1000 per month, paid in a manner consistent with the Company's general payroll practices on the first business day of each month. 

        (b)  In
full and complete satisfaction of all obligations of the Company under the Employment Agreement, including any payments required pursuant to such Agreement as a
result of LaPorta's exercise of his voluntary termination right, the sum of $945,000, on or before the Resignation Date. 

        (c)  LaPorta's
remaining unexercised options (491,400) to purchase shares of the Company's common stock shall be exercisable through the Termination Date. The options granted
under the Employment Agreement shall become vested in full pursuant to the terms of the Employment Agreement on January 31, 2002, and shall be exercisable through the Termination Date. 

 

        (d)  LaPorta's
full account balance under the Company's deferred compensation plan, including all matching contributions, shall be fully vested and paid on January 31,
2002. 

All
benefit coverages (group health, life, long term disability, 401(k) and other insurance coverages) shall cease on the Resignation Date subject to the requirements of COBRA, as to the Company's
health program. Conversion rights will be provided for these benefits programs, if any, in accordance with the Company's policy and practice for employees generally 

        3.    LaPorta
agrees and acknowledges that the Company has no obligation, contractual or otherwise to LaPorta, except as provided herein, nor does it have any obligation to
hire, rehire or re-employ LaPorta in the future. LaPorta agrees that, upon satisfaction of all obligations hereunder, the Company will have satisfied any and all obligations under the
Employment Agreement. 

        4.    Notwithstanding
the termination of the Employment Agreement, LaPorta agrees that all of the provisions of Sections 6A., C., D., E., and F. of the Employment Agreement
shall continue in full force and effect; provided, however, that LaPorta also agrees that the provisions of Subsections 6A(1) through (3) shall remain in effect through December 31,
2003, and the provisions of Section 6A(4) shall remain in effect through January 31, 2007. All claims arising from these provisions will be limited to direct damages caused willfully or
by gross negligence and shall be resolved in accordance with the provisions of Section 9 of this Agreement. 

        5.    The
parties mutually agree not to disparage the name, business reputation or business practices of each other. 

        6.    The
parties agree that each of them has read the terms of this Agreement, has had the opportunity to discuss it with his or its attorney, and that each understands its
terms and effects. The parties acknowledge, further, that each of them is executing this Agreement of his or its 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 above, which LaPorta acknowledges is adequate and satisfactory to him. None of the above-named parties, nor their
agents, representatives, or attorneys have made any representations to LaPorta nor has LaPorta made any such representations to the Company concerning the terms or effects of this Agreement other than
those contained herein. 

        7.    The
parties hereto agree that if any part of this Agreement is determined to be invalid, illegal or otherwise unenforceable, the remaining provisions of this Agreement
shall not be affected and will remain in full force and effect. 

        8.    This
Agreement may be assigned to any subsidiary, affiliate or successor of the Company and shall inure to the benefit of and be binding upon the Company and LaPorta and
the successors and assigns of each; provided, however, that any assignment by the Company shall not relieve it of its obligation to ensure the satisfaction of its obligations to LaPorta as required by
Section 2. LaPorta may not assign any of his personal undertakings hereunder. 

        9.    The
Company and LaPorta 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 Las Vegas, Nevada, of all claims or controversies arising out of this Agreement other than a claim which is primarily for an injunction or other equitable
relief. The non-prevailing party shall pay the fees and costs of the arbitrator and all other costs of the prevailing party in connection with any
arbitration, including legal fee and expenses. Any such arbitration proceedings must be instituted by the party requesting a resolution within twelve months of the time that party knew, or should have
known, of the events or facts giving rise to the dispute requiring resolution. The failure to institute arbitration proceedings within such period shall constitute an absolute bar to the institution
of any proceedings and a waiver of all claims. 

        10.  This
Agreement shall be interpreted and enforced under the laws of the State of Nevada. 

2

 

        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written. 

	 	 	PARK PLACE ENTERTAINMENT CORPORATION
	

 	
 	

By:	
 	

/s/ STEVEN BELL
 Steven Bell, Senior Vice President
	

 	
 	

Attest:	
 	

/s/ KIM SINATRA

	

/s/ CLIVE CUMMIS
 Witness	
 	

/s/ SCOTT LAPORTA
 Scott LaPorta

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QuickLinks

Exhibit 10.36

EXECUTIVE EMPLOYMENT AGREEMENT

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