Document:

License Agreement

  10-25-02
 EXHIBIT 10.58
 
  LICENCE AGREEMENT
  BETWEEN
  WYNN LAS VEGAS, LLC
 
3145 Las Vegas Blvd. South, Las Vegas, NV 89109, USA (“Wynn Las Vegas”),
  AND
  CALITRI SERVICES AND LICENSING LIMITED LIABILITY COMPANY
  2724 Ujlengyel – Dorsa, Gyorgy – Utea 1 -   Hungary,
Europe (“Calitri”),
  DATED
  October 31, 2002
 
 

	  WHEREAS Wynn Las Vegas, wishes to have the right to produce and present an aquatic live show (the “Show”) based and developed on a
Concept which has been approved by Wynn Las Vegas and described in a document entitled “Genesis” dated October 2001 (the “Show Concept”), at the Le Rêve resort, in Las Vegas, Nevada (“Le
Rêve”);
 
	  
 
	  WHEREAS Calitri will create and own the rights to use and exploit the storyline, plot, themes, characters, concept developments, ideas, costumes, sets,
choreographies, lighting concepts, staging, sound designs and copyrights in the Show (all of which being herein together referred to as the “Rights”);
 
	  
 
	 WHEREAS Calitri agrees to licence to Wynn Las Vegas on an exclusive basis the necessary rights to produce and present live performances of the Show and to
create, manufacture, produce, sell and distribute derivative products and merchandising and to produce, distribute and sell publications relating to the Show, subject to the terms and conditions of this Agreement.
 
	  
 
	  Now, therefore, in consideration of the mutual covenants herein contained the parties hereto agree as follows:
 
	  
 	  
 
	  1.
 	  DEFINITIONS
 
	  
 
	  All capitalized words and terms not defined in this Agreement shall have the meaning given to them in the “Production Services Agreement” entered into
between Wynn Las
 

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	  Vegas and Productions du Dragon S.A. on October 31, 2002 (the “Dragon Production Agreement”).
 
	  
 	  
 
	  2.
 	  GRANT OF LICENSE
 
	  
 	  
 
	 A)
 	  Subject to the terms of this Agreement and in consideration of the payments to be made pursuant to Section 11 hereto, Calitri hereby grants to Wynn Las Vegas
for the whole duration of the Term and any Extension an exclusive license, to:
 
	  
 	  
 	  
 
	  
 	  (1)
 	  produce and present live performances of the Show at Le Rêve and at any other Wynn Casino;
 
	  
 	  
 	  
 
	  
 	  (2)
 	  adapt, change, rearrange, modify, add to or delete from the Show for the purposes mentioned in Section 2.A) (1) hereof, with the prior consent and the assistance of Calitri and
provided that any such adaptation, change, rearrangement, modification or addition shall become the sole property of Calitri;
 
	  
 	  
 	  
 
	  
 	  (3)
 	  create, manufacture, produce, sell and distribute, anywhere throughout the world, derivative products incorporating or representing the name and/or the logo of the Show
(the “Show Trademarks”) or any visual elements of the Show, and any other derivative products approved and authorized by Calitri (collectively the “Show Products”);
 
	  
 	  
 	  
 
	  
 	 (4)
 	  advertise the Show by any method and through any media; and
 
	  
 	  
 	  
 
	  
 	  (5)
 	  publish, distribute and sell anywhere throughout the world printed material directly related to the live performances of the Show, in book, magazine, program or other printed
form.
 
	  
 	  
 	  
 
	  B)
 	  Subject to the terms of this Agreement and in consideration of the payments to be made pursuant to Section 11 hereof, Calitri hereby grants to Wynn Las Vegas
the perpetual exclusive license to exploit the Show Trademarks exclusively with the other rights hereunder granted.
 
	  
 	  
 
	  C)
 	  All rights and licenses herein granted are cumulative; Wynn Las Vegas may exercise or use any or all of such rights and licenses simultaneously with or separately
from the exercise of any other rights and licenses.
 
	  
 	  
 
	 D)
 	  Calitri and Wynn Las Vegas mutually acknowledge the relationship of trust and confidence established between the parties. Calitri hereby represents that it and
Franco Dragone representing Creations du Dragon S.P.R.L.U. (“Créations”) will use their best efforts in furthering the interests of Wynn Las Vegas to provide
 

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 	  first-class entertainment attractions for Le Rêve and in the performance of their duties and obligations under this Agreement.
 
	  
 	  
 
	  
 	  Wynn Las Vegas hereby represents that it and Stephen A. Wynn individually will use their best efforts to further the interests of Calitri to provide first-class
entertainment attractions to Le Rêve and in the performance of their duties and obligations under this Agreement.
 
	  
 	  
 
	  E)
 	  Wynn Las Vegas hereby accepts and acknowledges that Calitri will be the sole creator of the Show and that Calitri, as may be deemed necessary or as may be in the
best interests to the Show, may utilize consultants and subcontractors to assist Calitri in the performance of the services contemplated hereunder, provided that
 
	  
 	  
 	  
 
	  
 	 (1)
 	  Franco Dragone, representing Créations, shall be personally appointed to control and oversee the creation and artistic direction of the Show; and
 
	  
 	  
 	  
 
	  
 	  (2)
 	  Calitri shall remain responsible to Wynn Las Vegas hereunder.
 
	  
 	  
 
	  3.
 	  CREATIVE AND ARTISTlC CONTROL
 
	  
 
	  Calitri will lead all creative and artistic matters concerning the development, production, staging, running and operation of the Show including, without
limitation, the Show Concept, creation, preparation, development, production, selection of acts and performers, casting, sets, costumes, lighting, music, staging, and other related showroom operations.
 
	  
 
	  Calitri will fully and meaningfully consult with Wynn Las Vegas as may be reasonably requested by Wynn Las Vegas on matters relating to the creation of the Show.
All creative and artistic decisions pertaining the Show will be made jointly by Franco Dragone, representing Créations, and Stephen A. Wynn.
 
	  
 
	 Without limiting the foregoing, Calitri and Wynn Las Vegas will share control and approval rights on all creative and artistic decisions and matters pertaining to
the marketing of the Show including, without limitation, the creation, development, promotion and marketing of the Show Products, the creation of visual campaigns, the use of music and promotion and the names and titles to be associated with said
promotion.
 
	  
 	  
 
	  4.
 	  LENGTH OF SHOW
 
	  
 
	  The Show shall run for approximately ninety (90) minutes with no intermission.
 
	  
 	  
 
	  5.
 	  TITLE OF SHOW
 
	  
 
	  The title of the Show will be mutually agreed upon between Wynn Las Vegas and Calitri. Wynn Las Vegas agrees that, at the request of Calitri, whenever or wherever
the
 

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	  title of the Show will figure or be used, reference to such title shall also include a reference as follows: “created by Dragone”, and including
Dragone’s logo when possible. Wynn Las Vegas also agrees, at the request of Calitri, to include credits for the various creators of the Show in all printed material, press releases, and souvenir programs related to the Show. Wynn Las Vegas and
Calitri mutually agree to establish the parameters of such inclusion or reference when deemed necessary.
 
	  
 	  
 
	 6.
 	  PRODUCTION OF SHOW
 
	  
 
	  Any costs of the nature set out in the Show Production Budget and incurred by Calitri pursuant to this Agreement shall be reimbursed to Calitri by Wynn Las Vegas in
accordance with Section 11 hereof.
 
	  
 	  
 
	  7.
 	  THEATRE AND EQUIPEMENT
 
	  
 	  
 
	  A)
 	  The Show shall be presented by Wynn Las Vegas in a first class theatre situated in the Le Rêve resort, which theatre shall seat approximately 2000 patrons
(“Showroom”). The Showroom shall be designed, constructed and laid out or remodelled, as the case may be, by Wynn Las Vegas in accordance with general parameters and specifications discussed with Calitri, including, without
limitation, stage dimensions, sound, backstage services, lighting, and theatrical equipment required by Calitri. Wynn Las Vegas agrees that the theatre and Showroom will have to be completed and delivered to Calitri dust free for the production of
the Show by no later than 183 days before the Opening Date.
 
	  
 	  
 
	  B)
 	  Wynn Las Vegas shall consult with Calitri at every material stage of the construction of the Showroom, so as to ensure that it remains suitable for the Show.
 
	  
 	  
 
	 C)
 	  During the Term, Wynn Las Vegas shall maintain the Showroom, including its theatrical and specialised equipment, in good working order, at its sole cost.
 
	  
 	  
 
	  8.
 	  PERFORMANCE OF SHOW
 
	  
 
	  Wynn Las Vegas shall present the Show in the Showroom during the Term, commencing on the Opening Date, at its sole cost and expense.  Wynn Las Vegas hereby
represents that there shall be a minimum of 470 performances of the Show presented during each complete year of the Term.
 
	  
 	  
 
	  9.
 	  EXCLUSIVITY
 
	  
 	  
 
	  A)
 	  During the Term, neither Calitri nor any of its affiliates shall present:
 

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AGREEMENT IS STRICTLY CONFIDENTIAL

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 	 (1)
 	  the Show or any other show using same or similar characters or story line as a live presentation at any place in the world but Le Rêve or any other Wynn Casino;
and
 
	  
 	  
 	  
 
	  
 	  (2)
 	  any show whatsoever at any casino or any casino resort complex in North America (USA and Canada) or Macau other than a Wynn Casino. This provision shall also include
the production or creation of any show or theatrical presentation at any theatre or performance venue in North America (USA and Canada) or Macau located within five miles of any Wynn Casino.
 
	  
 	  
 	  
 
	  
 	  
 	  The foregoing restrictions do not apply to:
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (ii)
 	  Services provided in connection with a Céline Dion production show to be presented in Las Vegas or its replacement show; and
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (iii)
 	  Services provided in connection with “Mystere” and/or “O” in Las Vegas, Nevada.
 
	  
 	  
 
	  B)
 	  During the Term, Calitri shall be entitled, at its sole discretion, to prevent Wynn Las Vegas or any other Wynn Casino from presenting, directly or
indirectly:
 
	  
 	  
 	  
 
	  
 	  (1)
 	  the Show or any other show using same or similar characters or story line as a live presentations at any place in the world but a Wynn Casino; and
 
	  
 	  
 	  
 
	  
 	  (2)
 	  any other show whatsoever, provided that such other show is similar in type to those being or having been created, presented by or through Calitri at the time Wynn
Las Vegas would be willing to present or produce such other show. Without limiting the foregoing it is agreed that such other shows would include any show of the nature of a theatre play, musical, opera, circus style show and any other production
involving many performers or disciplines. In the event Wynn Las Vegas would be willing to present such other show at any place anywhere in the world, Calitri shall have a right of first refusal to create and/or produce said other show at the
conditions proposed by Wynn Las Vegas. Calitri’s right of first refusal shall be exercised in a timely manner.
 
	  
 	  
 
	 10.
 	  ENHANCEMENTS
 
	  
 
	  If reasonably requested by Calitri and agreed to by Wynn Las Vegas, Wynn Las Vegas shall incur, on a cumulative basis, up to US$1,000,000 in costs per year, for
enhancements of the show, during the first nine years of the Term and, if the Term is extended, during each year of the Extension.
 

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	  11.
 	  COMPENSATION
 
	  
 	  
 
	  A)
 	  In consideration of the foregoing grant of licenses and rights, and in addition to the payment of certain costs and expenses as set forth in other sections of this
Agreement, Wynn Las Vegas shall pay to Calitri:
 
	  
 	  
 	  
 
	  
 	  (1)
 	  a non-refundable Creation Fee of US$2,000,000 (the ”Creation Fee”), of which US$1,000,000 has been paid. The balance of the Creation Fee will be
payable within thirty (30) days after completion of the Le Rêve financing, but in no event later than December 31, 2002.
 
	  
 	  
 	  
 
	  
 	 (2)
 	  such amounts, by way of advances, as are necessary to pay the non refundable advances, if any, payable to the Show Conceptors other than Créations
(“Advances to Conceptors”). Such Advances to Conceptors shall neither be included in the Show Production Costs nor in Show Operating Expenses for the purpose of this Section 11 hereunder, except for the financing costs
of such Advances to Conceptors (as stated below). The Advances to Conceptors shall be reimbursed to Wynn Las Vegas by deduction from the First Royalty (as defined below) to be paid to Calitri. Calitri acknowledges having received from Wynn Las
Vegas  an amount of US$180,418 as of August 31, 2002, in partial payment of the Advances to Conceptors. The parties agree that the total amount of the Advances to Conceptors shall not exceed US$875,000.
 
	  
 	  
 	  
 
	  
 	  (3)
 	  during the Term and any Extension thereof, the following non-refundable royalties (“Royalties”):
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (i)
 	  For each week and within seven days from the end thereof, a royalty (“First Royalty”) equal to ten percent (10%) of one hundred percent (100%) of Net
Ticket Revenue from the Show.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (ii)
 	  In respect of each Fiscal Quarter, a royalty (“Second Roya1ty”) equal to thirty percent (30%) of the Show Net Profits.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (iii)
 	  Wynn Las Vegas shall be entitled to deduct from the First Royalty, before paying Calitri, the amount of the Advances to Conceptors (as defined above).
 
	  
 	  
 	  
 
	  
 	  (4)
 	  Reimbursement of all Show Production Costs incurred by Calitri pursuant to Section 6. hereof.
 
	  
 	  
 	  
 
	  
 	  (5)
 	  Reimbursement of all costs, if any,  incurred by Calitri in connection with name searches for the Show and preparing, filing and registration of trademarks in
connection with the Show.
 
	  
 	  
 	  
 
	  
 	 (6)
 	  Reimbursement of all operating and follow up costs incurred by Calitri during the Fiscal. Quarter.
 

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	  B)
 	  Wynn Las Vegas shall retain for its own account all of the Net Ticket Revenue from the Show, and all of the Show Net Profits, subject to the amounts payable to Calitri
hereunder.
 
	  
 	  
 
	  C)
 	  All sums payable to Calitri pursuant to Section 11 A(3)(ii) hereof shall be payable as follows:
 
	  
 	  
 
	  
 	  Within ten (10) business days following each month of each Fiscal Quarter, Wynn Las Vegas shall provide Calitri with a statement showing the total Show Revenue received by Le
Rêve and the total Show Operating Expenses incurred by Wynn Las Vegas over such month, and Wynn Las Vegas shall pay to Calitri together with such statements thirty percent (30%) of the Show Net Profits, if any, for such month.  Then,
within fifteen (15) days following the end of each Fiscal Quarter during the Term, Wynn Las Vegas shall provide Calitri with the Quarterly Net Profit Statement showing (i) the total Show Revenue received by Wynn Las Vegas and the total Show
Operating Expenses incurred by Wynn Las Vegas over such Fiscal Quarter, and (ii) the portion of the Show Net Profits due and payable to Calitri for such Fiscal Quarter, and Wynn Las Vegas shall remit to Calitri together with such statement the
portion of the Show Net Profits then still due and payable to Calitri.
 
	  
 	  
 
	  
 	 Within forty-five (45) days after the end of each Year during the Term, Wynn Las Vegas shall provide Calitri with a yearly statement (i) the total Show Revenue received by Wynn
Las Vegas and the total Show Operating Expenses incurred by Wynn Las Vegas over such Year (ii) the amount of any adjustment required to the Show Net Profits as set forth below and (iii) the portion of the Show Net Profits due and payable to Calitri,
or refundable to Wynn Las Vegas, for such Year based upon the actual results of each Fiscal Quarter, and Wynn Las Vegas shall remit to Calitri together with such statement the portion of the Show Net Profits due and payable to Calitri, if any. 
Any refund due to Wynn Las Vegas from Calitri may be applied against future quarterly Show Net Profits due and payable to Calitri until fully paid.  If, on termination or expiration, a refund remains due to Wynn Las Vegas. such refund shall be
paid within ten (10) days after said expiration or termination in immediately available US$funds or bank draft as per Wynn Las Vegas’ written instructions.
 
	  
 	  
 
	  
 	  All sums payable to Calitri pursuant to Section 11.A)(4), (5) and (6) shall be payable within ten (10) days after insurance by Calitri of invoices in respect thereof accompanied
by appropriate supporting document.
 
	  
 	  
 
	  D)
 	  All of the aforesaid amounts payable to Calitri shall be paid by Wynn Las Vegas in immediately available $US funds or bank draft as per Calitri’s written
instructions.
 
	  
 	  
 
	 E)
 	  As compensation for the creation of the show and ongoing overseeing the creation and artistic direction of the Show, Franco Dragone shall receive 189,723
 

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 	  shares of the common stock of Wynn Resorts, Limited, subsequent to that company’s initial public offering and pursuant to a restricted stock agreement which
shall include certain vesting conditions and other restrictions.
 
	  
 	  
 
	  12.
 	  MERCHANDISING
 
	  
 	  
 
	  A)
 	  During the Term and without prejudice of the other provisions hereof, Wynn Las Vegas shall have the sole and exclusive worldwide right to license and/or manufacture
and sell Show Products of all types or kinds.
 
	  
 	  
 
	  B)
 	  Calitri and Wynn Las Vegas shall select together:
 
	  
 	  
 	  
 
	  
 	 (1)
 	  The particular types of Show Products to be licensed and/or manufactured and sold by Wynn Las Vegas and other Wynn Casinos, and all elements of the design thereof, including
without limitation, colors, shapes, packaging, depiction in all respects of the trademarks; and
 
	  
 	  
 	  
 
	  
 	  (2)
 	  The particular types of Show Products sold in the Showroom and the manner in which Show Products are sold elsewhere in the world.
 
	  
 	  
 	  
 
	  
 	  Quality and manufacturing standards of the Show Products shall in any case be comparable to the highest quality in manufacturing standards of similar types of
merchandise sold by Wynn Las Vegas and Calitri.
 
	  
 	  
 
	  C)
 	  Wynn Las Vegas shall sell Show Products in the lobby of the Showroom and in a retail store situated at a prime retail location in the Le Rêve and in proximity
to the Showroom entrance and/or at any alternate location in Le Rêve determined to provide optimal visibility and traffic flow to and from the Showroom entrance, which location shall be approved by Calitri, and which store shall sell Show
Products exclusively.
 
	  
 	  
 
	 D)
 	  Calitri may develop and create, subject to reasonable approval of Wynn Las Vegas, a souvenir program in respect of the Show (“Souvenir
Program”), to be sold by Wynn Las Vegas during the Term and any Extension thereof in the retail store referenced to above and the Showroom. The parties shall mutually agree as to the best method of manufacture and production of the
Souvenir Program.
 
	  
 	  
 
	  E)
 	  Wynn Las Vegas in consideration of the license granted in this section 12 shall pay to Calitri a merchandise royalty of:
 
	  
 	  
 	  
 
	  
 	  (1)
 	  ten percent (10%) of one hundred (100%) of the retail selling price of all Show Products, and Souvenir Programs sold by Wynn Las Vegas, less sales taxes, credit card and
handling fees and customer returns, and shall retain all of the gross proceeds of such sales; and
 
	  
 	  
 	  
 
	  
 	  (2)
 	  fifty percent (50%) of one hundred percent (100%) of the before tax profits generated by all non retail sales of Show Products and Souvenir Programs sold by or on behalf of Wynn
Las Vegas. Such before tax
 

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 	  profits shall be equal to one hundred percent (100%) of the gross proceeds generated by all such non retail sales of Show Products and Souvenir Program less all direct out of
pocket expenses incurred by Wynn Las Vegas in relation with such sales. For the purpose hereof, such direct out of pocket expenses shall not include any interest and other financing expenses incurred by Wynn Las Vegas, any cost of a capital nature
and any amortisation in respect thereof and any income taxes payable by Wynn Las Vegas.
 
	  
 	  
 
	  F)
 	  Notwithstanding the foregoing, the parties agree that the exploitation of the following rights pertaining to the Show shall be “frozen” and cannot be
marketed without the mutual approval of both parties.
 
	  
 	  
 	  
 
	  
 	  (1)
 	  All videos, audiovisual works, motion pictures, television series, sound recordings and interactive multimedia products, in whatever form and medium, including without
limitation internet web sites specially devoted to the show.  (In such a case, Wynn Las Vegas acknowledges that appropriate compensation shall be payable to the Show music publisher(s) for the synchronization or mechanical rights, in accordance
with the industry standards and practices); and
 
	  
 	  
 	  
 
	  
 	 (2)
 	  All books, magazines, comic strips or other publications, incorporating aspects of the Show including, but not limited to, the characters, costumes and any pictorial, visual
graphics or sculptural works forming part or appearing in or using the title or logos of the Show or based upon or utilising the visual the Show.
 
	  
 	  
 
	  G)
 	  Wynn Las Vegas shall have the right to include the Show Trademarks in the Show Products and in all advertising and promotional materials prepared for the
Show.
 
	  
 	  
 
	  13.
 	  SPONSORSHIP
 
	  
 
	  During the Term, the Show as presented in the Showroom should not be utilised so as to endorse any third-party products or services and shall not develop
sponsorship arrangements without the express prior written consent of Wynn Las Vegas and Calitri, which consents may be arbitrarily withheld.
 
	  
 	  
 
	  14.
 	  LICENSING AND SUBLICENSING
 
	  
 	  
 
	 A)
 	  Calitri hereby represents and warrants that it owns or controls the Rights, that Calitri is not a party to any agreement which would prohibit Calitri from granting
the licenses granted herein to Wynn Las Vegas and that the licenses granted herein by Calitri to Wynn Las Vegas do not and will not conflict with or result in a breach of the terms, conditions, provisions of, or constitute a default under any
agreement to which Calitri is a party.
 

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	  B)
 	  Except as otherwise provided herein in Section 12. A) hereof, the rights granted to Wynn Las Vegas under this Agreement shall not be transferred, licensed,
sublicensed, assigned, sold or otherwise disposed of by Wynn Las Vegas without the prior written consent of Calitri except that:
 
	  
 	  
 	  
 
	  
 	  (1)
 	  Wynn Las Vegas shall be entitled to transfer, license, sublicense, assign, sell or dispose of the rights granted under this Agreement to any Wynn Casino without the prior
written consent of Calitri; and
 
	  
 	  
 	  
 
	  
 	 (2)
 	  Wynn Las Vegas shall be entitled to sublicense the right to exploit the Show Trademarks in relation with the advertising of the Show to any third party without the prior written
consent of Calitri.
 
	  
 	  
 
	  15.
 	  TERMINATION AND REVERSION OF RIGHTS
 
	  
 	  
 
	  A)
 	  The licenses hereinabove granted shall cease and terminate, and the rights hereinabove granted shall automatically revert to the Calitri, if:
 
	  
 	  
 	  
 
	  
 	  (1)
 	  Wynn Las Vegas files a petition in bankruptcy or is adjudicated a bankrupt or if a proceeding, petition or notice in bankruptcy, voluntary or involuntary, is filed against Wynn
Las Vegas or if Wynn Las Vegas becomes insolvent or makes an assignment for the benefit of its creditors or an arrangement pursuant to any bankruptcy law or if Wynn Las Vegas discontinues its business or if a receiver is appointed for it or its
business or if a suspension of payments is given by any court of competent jurisdiction in respect of Wynn Las Vegas; or
 
	  
 	  
 	  
 
	  
 	 (2)
 	  Either party violates any of its obligations or conditions under the term of this Agreement, provided the other party gives sixty (60) days’ notice in writing of such
violation and such violation is not remedied within said sixty (60) days; or
 
	  
 	  
 	  
 
	  
 	  (3)
 	  The Dragon Production Agreement is terminated.
 
	  
 	  
 
	  B)
 	  If the Agreement herein is terminated in accordance with any of the provisions of Section 15.A), all compensation theretofore accrued shall become due and
payable immediately to Calitri and Wynn Las Vegas shall indemnify Calitri for all costs, expenses and charges payable by Calitri to employees or contractors and other third parties as may reasonably and necessarily result from such termination, and
Calitri shall not be obligated to reimburse Wynn Las Vegas for any payment theretofore paid by Wynn Las Vegas to Calitri.
 
	  
 	  
 
	  16.
 	  TAXES AND ASSESSMENTS
 
	  
 	  
 
	  A)
 	  All payments and compensation hereinabove provided are exclusive of any taxes of any nature and of any government whatsoever, whether the fiscal law is in

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 	  force presently or at any time in the future, except for income taxes, but are subject to withholding taxes, if any.
 
	  
 	  
 
	  B)
 	  The parties hereto agree to cooperate with each other to obtain the appropriate certificates of reduction or exemption of taxes, wherever applicable.
 
	  
 	  
 
	  17.
 	  BOOKS AND RECORDS
 
	  
 	  
 
	  A)
 	  Wynn Las Vegas shall keep or have any assignees or licensees of Wynn Las Vegas’ rights keep accurate books of account and records covering all transactions relating to the
rights and licenses herein granted and Calitri or its nominees shall have the right upon notice and at all reasonable hours during any business day to an examination of said books of account and records and all other documents and materials, whether
in the possession of Wynn Las Vegas or any assignees or sublicensees of Wynn Las Vegas’ rights or otherwise, with respect to the subject matter and the terms of this Agreement, and shall have free and full access thereto for the purpose of
taking extracts or copies thereof.
 
	  
 	  
 
	 B)
 	  Calitri shall keep accurate books of account and records covering all transactions performed by Calitri pursuant to the terms of this Agreement and Wynn Las Vegas shall have the
right upon notice and at reasonable hours during any business day to an examination of said books of account and records with respect to the amounts reimbursable to Calitri under the terms of this Agreement, and shall have free and full access
thereto for the purpose of taking extracts or copies thereof.
 
	  
 	  
 
	  18.
 	  INDEMNITIES OF CALITRI
 
	  
 	  
 
	  A)
 	  Calitri agrees to indemnify and hold harmless Wynn Las Vegas, its members, managers, directors, officers and agents and all others claiming by, through or under Wynn Las Vegas
against any claims, demands, suits, losses, costs, expenses (including, without limitation, reasonable counsel fees, costs and disbursements), damages or recoveries (including, without limitation, any amounts paid by Wynn Las Vegas in settlement),
suffered, paid, incurred or assumed by Wynn Las Vegas, its members, managers, directors, officers, agents and all other claiming by, through or under Wynn Las Vegas by reason of any breach or non-performance of any representation, warranty or
covenant of Calitri contained in this Agreement, or by Calitri’s negligence or willful misconduct .
 
	  
 	  
 
	  B)
 	  Wynn Las Vegas shall notify Calitri in writing of the existence of any such claim, demand or suit, which if sustained, would give rise to liability on the part of Calitri
hereunder, promptly after Wynn Las Vegas has knowledge of any such claim, demand or suit. Calitri shall have the option to designate counsel to defend any such claim, demand or suit designated by it and shall control such defense. Wynn Las Vegas
shall cooperate in the defense of any such claim, demand or suit and may participate in the defense of any such claim, demand or
 

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 	  suit with counsel of its own choosing (if Wynn Las Vegas does not approve counsel designated by Calitri) at its own expense, it being understood that Calitri shall not be
responsible for the payment of any fees of any such counsel.  Wynn Las Vegas shall not take any action to compromise or settle any such claim, demand or suit unless consented to in writing by Calitri.
 
	  
 	  
 
	  19.
 	  INDEMNITIES OF WYNN LAS VEGAS
 
	  
 	  
 
	  A)
 	  Wynn Las Vegas agrees to indemnify and hold harmless Calitri, its directors, officers and agents and all others claiming by, through or under Calitri against any claims,
demands, suits, losses, costs, expenses (including, without limitation, reasonable counsel fees, costs and disbursements), damages or recoveries (including, without limitation, any amounts paid by Calitri in settlement), suffered, paid, incurred or
assumed by Calitri, its directors, officers, agents and all other claiming by, through or under Calitri by reason of any breach or non-performance of any representation, warranty or covenant of Wynn Las Vegas contained in this Agreement, or by Wynn
Las Vegas’ negligence or willful misconduct.
 
	  
 	  
 
	 B)
 	  Calitri shall notify Wynn Las Vegas in writing of the existence of any such claim, demand or suit, which if sustained, would give rise to liability on the part of Wynn Las Vegas
hereunder, promptly after Calitri has knowledge of any such claim, demand or suit. Wynn Las Vegas shall have the option to designate counsel to defend any such claim, demand or suit designated by it and shall control such defense. Calitri shall
cooperate in the defense of any such claim, demand or suit with counsel of its own choosing (if Calitri does not approve counsel designated by Wynn Las Vegas) at its own expense, it being understood that Wynn Las Vegas shall not be responsible for
the payment of any fees of any such counsel Calitri shall not take any action to compromise or settle any such claim, demand or suit unless consented to in writing by Wynn Las Vegas.
 
	  
 	  
 
	  20.
 	  OPTION
 
	  
 
	  Wynn Las Vegas or one of its affiliates shall have the option to have Calitri create, develop and produce a second new first-class theatrical entertainment
attraction (the “Other Show”) to be financed, produced and presented by Wynn Las Vegas or its affiliate at Le Rêve or any other of the Wynn Casinos and to obtain an exclusive licence to produce and present the Other Show
upon terms and conditions similar to those set out in this Agreement, provided that (a) Wynn Las Vegas or its affiliate has informed Calitri in writing by no later than December 31, 2003 that it wishes to produce and present such Other Show; (b) the
first public performance of the Other Show is scheduled to take place no earlier than 15 months and no later than 30 months after the notice provided in the preceding clause (a), taking into account the size and complexity of the Show; and
(c) within ten (10) days following the approval of the concept of the Other Show, Wynn Las Vegas or its affiliate pays Calitri the sum of US$1,000,000. The
 

 THIS AGREEMENT IS STRICTLY CONFIDENTIAL

   Page 13 of 15

	  parties acknowledge and agree that Wynn Las Vegas has already paid Calitri US$1,000,000 to obtain and secure this option right.
 
	  
 	  
 
	  21.
 	  MISCELLANEOUS
 
	  
 	  
 
	  A)
 	  This Agreement together with any attachments hereto shall be the definitive Agreement between the parties and define each party’s rights and obligations to the other. This
Agreement may be modified with the consent of both parties by written amendment, which, upon execution shall become a part of this Agreement with the same full force and effect as if first written.
 
	  
 	  
 
	  B)
 	  Calitri acknowledges that Wynn Las Vegas and its affiliates conduct businesses that are subject to and exist because of privileged licenses issued by governmental authorities in
the State of Nevada and elsewhere, that regulate gaming and related matters.  In the event Calitri is found unsuitable by the appropriate governmental authority or if Wynn Las Vegas is advised by such governmental authority to terminate its
relationship with Calitri, or Wynn Las Vegas reasonably determines, based on its internal compliance investigation and based on substantial, objective and evidenced elements, that it is required to terminate its relationship with Calitri to avoid
the loss of its privileged licenses or receive sanctions, Wynn Las Vegas shall be entitled to terminate the agreement between the parties without liability to Calitri except for the obligation to pay all costs incurred to the date of such
termination.
 
	  
 	  
 
	  
 	 Notwithstanding the above, Calitri shall be allowed an opportunity to pursue any appeal rights it may have with respect to any governmental determination which Wynn Las Vegas is
using as the basis of exercising its termination rights.
 
	  
 	  
 
	  
 	  If the licenses are terminated for any reason other than as a result of Calitri’s activities as referred to above, Calitri shall be entitled to full indemnification by Wynn
Las Vegas for all and any provable losses incurred by Calitri due to such termination.
 
	  
 	  
 
	  C)
 	  Each party undertakes not to disclose the existence of this Agreement to any third party except to its professional advisors and its consultants and to such other persons as is
reasonably required in order to consummate the transactions contemplated herein.
 
	  
 	  
 
	  
 	  This paragraph shall survive the termination of this Agreement. This confidentiality restriction does not apply in the event of litigation between the parties in relation to
this Agreement, or in the event its disclosure is compelled by law or regulation or by order of any court or regulatory authority having jurisdiction over one of the parties.  In this regard, Calitri acknowledges and agrees that this Agreement
may be required to be disclosed by Wynn Las Vegas and its affiliates in connection with the financing of Le Rêve.
 

 THIS AGREEMENT IS STRICTLY
CONFIDENTIAL

   Page 14 of 15

	  D)
 	  This Agreement shall be governed by and construed in accordance with the laws and of the State of Nevada, without regard to conflict of laws principles, and the parties hereby
consent to the exclusive jurisdiction of the state or federal court located in Clark County, Nevada for any dispute arising out of or relating to this Agreement.
 
	  
 	  
 
	  E)
 	  Neither this Agreement nor any rights or obligations conveyed hereunder may be transferred, assigned, or delegated (including by sublicense) without the written consent of the
other party, which consent may be withheld for any reason whatsoever. Notwithstanding the foregoing, this Agreement may be assigned by Wynn Las Vegas or by Calitri to any of its affiliated entities, without the prior consent of the other party;
provided that such assignment shall not discharge or otherwise affect the obligations of the assignor to perform, fulfill and satisfy its obligations and responsibilities hereunder. This Agreement shall inure to the benefit of and be binding upon
the parties hereto and each of their respective successors, permitted assigns, administrators and/or legal representatives.
 
	  
 	  
 
	  F)
 	  Faxed signatures shall be sufficient to bind each party to this Agreement and this Agreement may be executed in one or more counterparts, which shall form together the entire
Agreement between the parties.
 
	  
 	  
 
	 G)
 	  Nothing herein contained shall constitute a partnership or joint venture between the parties hereto. No party shall act in any manner contrary to the terms of this
Section 21.G) and no party shall become liable by any representation, act or omission of the other.
 
	  
 	  
 
	  H)
 	  Except as otherwise specifically set forth above, nothing contained herein shall be interpreted or construed as creating on Calitri, its staff and personnel, including Franco
Dragone representing Créations, an obligation to devote time and resources on an exclusive basis.
 
	  
 	  
 
	  I)
 	  This Agreement constitutes the complete and exclusive agreement between the parties and replaces and supersedes all prior agreements, negotiations, statements, memoranda and
understandings with respect to its subject matter.
 
	  
 	  
 
	  J)
 	  The voiding of any provision of this Agreement by any Court shall not serve as to void or place in less than full force and effect any other provision of this
Agreement.
 

  THIS AGREEMENT IS STRICTLY CONFIDENTIAL

  Page 15 of 15
  This Agreement is agreed to and accepted this 31st day of October 2002 by those
parties whose duly authorized signatures are set forth below:

	  
 	  CALITRI SERVICES AND
 LICENSING LIMITED
 LIABILITY
COMPANY
 	  
 	  
 	  WYNN  LAS VEGAS, LLC
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  Per: WYNN RESORTS HOLDINGS LLC
 
	  
 	  
 	  
 	  
 	  its sole member
 
	  
 	  
 	  
 	  
 	  Per: VALVINO LAMORE, LLC
 
	  
 	  
 	  
 	  
 	 its sole member
 
	  
 	  
 	  
 	  
 	  Per: WYNN RESORTS, LIMITED
 
	  
 	  
 	  
 	  
 	  its sole member
 
	  
 	  
 	  
 	  
 	  
 
	  Per
 	  /s/ AUSTIN L. SEALY
 	  
 	  Per:
 	  /s/ STEPHEN A. WYNN
 
	  
 	 
 	  
 	  
 	 
 
	  
 	 Austin L. Sealy
 Managing Director
 	  
 	  
 	  Stephen A. Wynn
 Chairman and Chief Executive Officer
 
	  
 	  
 	  
 	  
 	  
 
	  As to the personal obligations in Sections 2.D) and E):
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  /s/ FRANCO DRAGONE
 	  
 	  
 	  
 
	  
 	 
 	  
 	  
 	  
 
	  
 	  Franco Dragone,  Représenting Créations
 du Dragon S.P.R.L.U.
 	  
 	  
 	  
 

 THIS AGREEMENT IS STRICTLY CONFIDENTIALProduction Services Agreement

  EXHIBIT 10.60
 
 PRODUCTION SERVICES AGREEMENT
  BETWEEN
  WYNN LAS VEGAS, LLC
  3145 Las Vegas Blvd. South, Las Vegas, NV
89109, USA (“Wynn Las Vegas”),
  AND
  PRODUCTIONS DU DRAGON, S.A.
  Rue de Belle Vue 23-7100 La Louvière - Belgique, Europe (“Dragon”)
  DATED
 
October 31, 2002
 
  WHEREAS Wynn Las Vegas wishes to produce and present an aquatic live show
(the “Show”) based and developed on a concept which has been approved by it and which is described in a document entitled “Genesis” dated October 2001
(the “Show Concept”), at the Le Rêve resort in Las Vegas, Nevada (“Le Rêve”);
  WHEREAS Wynn Las Vegas has entered into a
License Agreement with Calitri Services and Licensing Limited Liability Company (“Calitri”) pursuant to which Wynn Las Vegas has been granted an exclusive license to produce and present live performances of the Show at
Le Rêve and to create, manufacture, produce, sell and distribute derivative products, merchandise and publications relating to the Show;
  WHEREAS Wynn Las Vegas will finance, produce
and present the Show at Le Rêve and requires the services of Dragon to co-produce the Show with it and Calitri, act as executive producer and project manager in relation with the production of the Show, and ensure the artistic follow-up and
coordination of the Show after the opening;
 WHEREAS Wynn Las Vegas also requires the services of Dragon to collaborate with Wynn Las Vegas and Calitri, assist in designing, manufacturing and
producing the sets, theatrical and acrobatic equipment and costumes for the Show, cast and train the artists and performers who will be part of the Show, and commence rehearsing and preparing the Show in Belgium and in Las Vegas;
 
WHEREAS Dragon has reviewed the Show Concept, and agrees to provide all of such services to Wynn Las Vegas.

   Now, therefore, in consideration of the mutual covenants herein contained the parties hereto agree as follows:

	  1.
 	  DESCRIPTION OF SERVICES
 
	  
 	  
 
	  A)
 	  In consideration of the payments to be made pursuant to Section 8 of this Agreement, Dragon will co-produce the Show with Wynn Las Vegas and Calitri, and act as executive
producer for the production of the Show and, as such, assist in designing, manufacturing and producing the sets, theatrical and acrobatic equipment and costumes for the Show, cast and train the artists and performers who will be part of the Show,
and commence rehearsing and preparing the Show in Belgium and in Las Vegas, all in consultation with and with the collaboration of Wynn Las Vegas and Calitri, and in accordance with the Show Production Budget (as hereinafter defined). 
Specifically, Dragon shall, without limiting the generality of the foregoing:
 

 

	  
 	  (1)
 	  Be responsible to conceive, design, research, develop, test and modify as directed by Calitri and in consultation with and with the collaboration of Wynn Las Vegas and Calitri,
and in accordance with their specifications (as may be modified), the following:
 

 

	  
 	  
 	  a)
 	  all costumes and props, and their accessories;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  b)
 	  all artistic and acrobatic equipment and rigging, and their accessories;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  c)
 	  all stage, sets and scenery;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  d)
 	  all lighting, video, sound, musical instruments and any other type of equipment, tools and devices necessary for the performance of each of the acts of the Show;

 

	  
 	  (2)
 	  Be responsible, in consultation with and with the collaboration of Wynn Las Vegas and Calitri, and in accordance with their specifications (as may be modified), to
manufacture and/or to provide and have ready by the Opening Date, the following:
 
	  
 	  
 	  
 
	  
 	  
 	  a)
 	  all costumes and props, and their accessories;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  b)
 	  all artistic and acrobatic equipment and rigging, and their accessories;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  c)
 	  all stage, sets and scenery;
 

 THIS AGREEMENT IS STRICTLY CONFIDENTIAL

	  
 	  
 	  d)
 	  all lighting, video, sound, musical instruments and any other type of equipment, tools and devices necessary for the performance of each of the acts of the Show;

	  
 	  
 	  
 	  
 
	  
 	  
 	  e)
 	  all computer hardware and software related to the equipment required for the Show, and their accessories;
 

 

	  
 	  (3)
 	  Be responsible during the production period of the Show and the Term for the appropriate physical training of the artists and the technical staff as directed by
Calitri;
 
	  
 	  
 	  
 
	  
 	  (4)
 	  Be responsible during the production period of the Show for the housing in Belgium and local transportation of the artists and the technical staff in training;
 
	  
 	  
 	  
 
	  
 	 (5)
 	  Find, negotiate with and, as and when it may be decided by Dragon and Wynn Las Vegas, hire under reasonable terms and conditions, all artists, personnel and staff members of the
management, technical, training and production teams which will be needed for and during the production period of the Show;
 
	  
 	  
 	  
 
	  
 	  (6)
 	  Build, purchase or lease as may be decided by Dragon and Wynn Las Vegas training and rehearsal facilities and equipment and all premises required for the making of costumes and
sets and for administrative purposes during the production period of the Show;
 
	  
 	  
 	  
 
	  
 	  (7)
 	  Be responsible to create and experiment with acrobatic and artistic techniques as may be required by Calitri for the concept of the Show;
 
	  
 	  
 	  
 
	  
 	  (8)
 	  Ensure that the Show is in a presentable and produceable state for the Term and is of a quality acceptable to the creators and Wynn Las Vegas by the Opening Date as hereinafter
defined; and
 
	  
 	  
 	  
 
	  
 	 (9)
 	  Assist Wynn Las Vegas in making all arrangements needed for the transportation of the artists, personnel and staff members and of items mentioned in Section 1A)(2) herein
which will be needed for and during the Term to the Le Rêve premises, and to prepare fully and timely all declarations and provide all such documents as may be required in connection therewith, including without limitation, immigration and
customs officials.
 

 

	  B)
 	  Dragon hereby also undertakes to find and to train in training facilities in Belgium or elsewhere as may be agreed by both parties and to make available at all times 

  THIS AGREEMENT IS STRICTLY CONFIDENTIAL

	  
 	  during the Term, replacement and back-up artists to replace, when needed, any artist who may leave the Show or be injured and become unable to perform in the Show during the
Term, and shall, without limiting the generality of the foregoing:
 

 

	  
 	  (1)
 	  Be responsible for the appropriate training of the replacement artists, back-up artists and injured artists for the Term;
 
	  
 	  
 	  
 
	  
 	 (2)
 	  Be responsible when needed for the housing and local transportation in Belgium of the replacement artists, back-up artists and injured artists in training;
 
	  
 	  
 	  
 
	  
 	  (3)
 	  If needed and requested by Wynn Las Vegas, build, purchase, lease, repair and maintain throughout the Term training and rehearsal facilities and equipment and provide trainers
services in order to properly train the replacement artists, back-up artists and injured artists needed for the presentation of the Show during the Term and for any new act of the Show which they might perform during the Term.  This decision
will be made twelve (12) months before the Opening Date to allow Dragon and Wynn Las Vegas adequate time to determine the best solution;
 
	  
 	  
 	  
 
	  
 	  (4)
 	  Find, negotiate with and, as and when it may be decided by Dragon and Wynn Las Vegas, hire under reasonable terms and conditions, until their final departure from the rehearsal
facilities to Le Rêve where their services may be needed during the Term, all back-up artists which may be needed for the presentation and production of the Show during the Term and, if hired by Dragon, pay all their wages, salaries, fringe
benefits, per diem allowances and reimbursement of expenses until their final departure from the rehearsal facilities;
 
	  
 	  
 	  
 
	  
 	 (5)
 	  Generally supervise and have ready, at any time during the Term but subject to reasonable and appropriate training time, to be mutually agreed, all replacement artists and
back-up artists; and
 
	  
 	  
 	  
 
	  
 	  (6)
 	  Assist Wynn Las Vegas in making all arrangements needed for the transportation of the replacement artists, back-up artists and injured artists to and from Le Rêve, prepare
fully and timely all declaration, and provide all such documents as may be required in connection therewith, including without limitation by immigration and customs officials.
 
	  
 	  
 	  
 

  THIS AGREEMENT IS STRICTLY CONFIDENTIAL

	  
 	  (7)
 	  If needed and requested by Wynn Las Vegas, Dragon further undertakes to maintain and replace when needed during the Term in accordance with the specifications (as may be
modified) of and as agreed upon with Wynn Las Vegas and Calitri, the following;
 

 

	  
 	  
 	 a)
 	  all costumes and props, and their accessories;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  b)
 	  all artistic and acrobatic equipment and rigging, and their accessories;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  c)
 	  all stage, sets and scenery;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  d)
 	  all lighting, video, sound, musical instruments and any other type of equipment, tools and devices necessary for the performance of each of the acts of the Show;

 

	  
 	  
 	 and to assist Wynn Las Vegas in making all arrangements needed for the transportation of such items to Le Rêve, prepare fully and timely all declarations, and provide all
such documents as may be required, including without limitation, by immigration and customs officials.
 

 

	  C)
 	  Dragon also agrees to assist and support Wynn Las Vegas in marketing and promoting the Show and derivative products incorporating or representing any visual elements of the Show
or any trademarks or titles related to the Show to be sold by Wynn Las Vegas;
 
	  
 	  
 
	  D)
 	  Dragon also agrees and undertakes to maintain the artistic integrity and provide for the artistic directions of the Show after the Opening Date and during the Term in accordance
with the specifications (as my be modified) of Wynn Las Vegas and Calitri and hereby also undertakes to continue to ensure that, following to the Opening Date, the Show is presentable, is of a quality acceptable to Calitri and the creator(s) of the
Show, and meets with their requirement until the end of the last Show of the Term.
 
	  
 	  
 
	  E)
 	  In providing the foregoing services, Dragon and Wynn Las Vegas accept the relationship of trust and confidence established between them.  Dragon and Franco Dragone,
representing Dragon, individually, agree to use their best efforts in furthering the interests of Wynn Las Vegas, and Wynn Las Vegas agrees to use its best efforts in furthering the interests of Dragon, to provide a first class entertainment
attraction for Le Rêve, and in the performance of their duties and obligations under this Agreement.  Franco Dragone shall personally control and oversee the creation, development, artistic direction and executive production of the
Show, and shall be personally responsible for the creation, development and artistic direction to Wynn Las Vegas.
 

 THIS AGREEMENT IS STRICTLY
CONFIDENTIAL

	  2.
 	  PRODUCTION AND PRESENTATION OF THE SHOW
 
	  
 	  
 
	  A)
 	  Wynn Las Vegas shall, at its sole cost and expense, be the financial producer and shall present the Show with Dragon as its sole executive and artistic producer. As financial
producer, Wynn Las Vegas shall provide, upon indications and advice of Dragon and as may reasonably be required by Dragon, all personnel (including but not limited to technical director, show technicians, engineers, artistic co-ordinator, artists
and other staff), costumes and props, equipments and rigging and other accessories, stage, sets and scenery, lighting, video, sound, musical instruments and any other type of equipment, computer hardware and software, as may be required to produce
and to present the Show during the Term or any Extension thereof.
 
	  
 	  
 
	  
 	  Any decision relating to the provision of the above personnel and materials for the production of the Show shall be made jointly by Wynn Las Vegas and Dragon in accordance with
the Show Production Budget, as hereinafter defined. In case of persistent disagreement between the parties, the final decision shall be made by Stephen A. Wynn, representing Wynn Las Vegas, in consultation with Franco Dragone, representing Dragon.
The foregoing does not apply to the construction of the Showroom (as defined below) and its equipment.
 
	  
 	  
 
	  
 	 Wynn Las Vegas shall further provide and make available at its costs for the production and presentation of the Show, all of its then supporting corporate services in human
resources, finance and accounting, taxation, legal and contractual matters, information technologies and procurement as reasonably requested by Dragon;
 
	  
 	  
 
	  B)
 	  Schedule 1 hereto is the Show Production Budget (the “Show Production Budget”), which describes the production costs (the “Show
Production Costs”) to be incurred in connection with the production of the Show. Any costs of the nature set out in the Show Production Budget and incurred by Dragon pursuant to this Agreement shall be reimbursed to Dragon by Wynn Las
Vegas in accordance with Section 8 hereof.
 
	  
 	  
 
	  C)
 	  All direct, overhead and out-of-pocket expenses incurred by Dragon and its affiliates after the Opening Date and in connection with the on-going presentation of the Show,
including general supervision and control over artistic matters, and its administrative overhead and out-of-pocket expenses, as agreed upon with Wynn, shall be assumed by Wynn Las Vegas and treated as “Show Operating
Expenses”. On a yearly basis, not later than sixty (60) days before the end of each year of the Term (except the final year), Wynn Las Vegas shall prepare, in consultation with Dragon, a budget for the Show Operating Expenses of the
forthcoming year, which shall be jointly agreed to by Wynn Las Vegas and Dragon.
 

  THIS AGREEMENT IS STRICTLY CONFIDENTIAL

	 3.
 	  THEATRE AND EQUIPEMENT
 
	  
 	  
 
	  A)
 	  The Show shall be presented by Wynn Las Vegas in a first class theatre in the Le Rêve resort, which theatre shall seat approximately 2000 patrons (the
“Showroom”). The Showroom shall be designed, constructed and laid out or remodelled, as the case may be, by Wynn Las Vegas in accordance with general parameters and specifications discussed with Dragon and subject to the
Theatre Construction and Specialized Equipment Budget, including, without limitation, stage dimensions, sound, backstage services, lighting, and theatrical equipment required by Dragon. Wynn Las Vegas agrees that the Showroom will have to be
completed and delivered to Dragon dust free for the load in and rehearsal of the Show by no later than 183 days before the Opening Date, as defined herein, by which completion and delivery date Wynn Las Vegas shall have obtained all of the permits,
licenses, registrations and certificates necessary for load-in and installation and no further work on the Showroom shall be required except for work on minor punch list items performed at times approved by Dragon in its sole discretion or at times
which Dragon is not using the Showroom.
 
	  
 	  
 
	  B)
 	  Wynn Las Vegas shall consult with Dragon at every material stage of the construction of the Showroom, so as to ensure that it remains suitable for the Show.
 
	  
 	  
 
	 C)
 	  The costs of the Showroom, which shall include construction expense and engineering fees, costs of sound, lighting and other theatrical and specialised equipment set out in
Schedule 2, shall be established by Wynn Las Vegas. During the Term, Wynn Las Vegas shall maintain the Showroom, including its theatrical and specialised equipment, in good working order, at its sole cost.
 
	  
 	  
 
	  4.
 	  PERFORMANCE OF SHOW
 

 

	  Wynn Las Vegas shall present, at its sole cost and expense, the Show in the Showroom for a period of ten (10) consecutive years (“Term”) commencing on
the date of the first public performance of the Show (“Opening Date”), which shall be jointly determined by the parties by no later than December 31, 2003 (provided Wynn Las Vegas receives the proceeds of the financing
of Le Rêve by no later than April 30, 2003), and shall coincide with the opening of Le Rêve. Notwithstanding the foregoing, Wynn Las Vegas hereby represents and warrants that such Opening Date shall in no event be later than
September 30, 2005.
 

 

	  A)
 	  The Show shall run for approximately ninety (90) minutes with no intermission. The frequency and number of performances of the Show presented during each year of the Term shall
be determined by mutual agreement of the parties, and shall take into consideration seasonality, provided that there shall be a minimum of 470 performances of the Show presented during each complete year of the Term.
 

 THIS AGREEMENT IS STRICTLY CONFIDENTIAL

	  B)
 	  Wynn Las Vegas shall be entitled, with the written consent of Dragon which shall not be unreasonably refused, to extend the presentation of the Show on the same terms and
conditions set out herein for a further five (5) year period following the end of the Term (“Extension”), provided that Wynn Las Vegas notifies Dragon in writing of such desire to extend the presentation of the Show by no
later than the eighth anniversary date of the opening of the Show.
 
	  
 	  
 
	  C)
 	  If after the first twelve months following the Opening Date, the total Show Revenue (as defined below) shall be less than the total of the Show Operating Expenses (as defined
below) during such 12-month period, Wynn Las Vegas shall have the right within sixty (60) days following the end of such 12-month period, to give Dragon written notice that Wynn Las Vegas elects to terminate the run of the Show, such termination to
become effective thirty (30) days from receipt of such written notice by Dragon. Upon such termination Dragon shall be entitled to retain all payments received by and pursuant to this Agreement, and Wynn Las Vegas shall immediately pay to Dragon all
amounts due and unpaid pursuant to this Agreement and any amount or indemnity which Dragon may reasonably and necessarily have to pay to third parties by reason of such termination.
 
	  
 	  
 
	  D)
 	  If Wynn Las Vegas fails to give Dragon notice of termination pursuant to the preceding paragraph, Wynn Las Vegas shall have the right to give Dragon a termination notice within
sixty (60) days following the end of each subsequent year during the Term, provided that the total Show Revenue shall have been less than the total Show Operating Expenses during such year, such termination to become effective thirty (30) days from
receipt of such notice. Upon such termination Dragon shall be entitled to retain all payments received by it pursuant to this Agreement, and Wynn Las Vegas shall immediately pay to Dragon all amounts due and unpaid pursuant to this Agreement and any
amount or indemnity which Dragon may have to pay to third parties by reason of such termination.
 
	  
 	  
 
	 5.
 	  EXCLUSIVITY
 
	  
 	  
 
	  A)
 	  During the Term, neither Dragon nor any of its affiliates shall present:
 

 

	  
 	  (1)
 	  the Show or any other show using same or similar characters or story line as a live presentation at any place in the world but Le Rêve or any other casino or hotel owned or
controlled by Stephen A. Wynn or Wynn Las Vegas or any other entity in which Stephen A. Wynn shall have a controlling interest (each a “Wynn Casino”); and
 
	  
 	  
 	  
 
	  
 	  (2)
 	  any show whatsoever at any casino or any casino resort in North America (USA and Canada) or Macau other than a Wynn Casino. This provision shall also include the production or
creation of any show or theatrical 
 

  THIS AGREEMENT IS STRICTLY CONFIDENTIAL

	  
 	  
 	 presentation at any theatre or performance venue in North America (USA and Canada) or Macau located within five miles of any Wynn Casino.
 

 

	  
 	  The foregoing does not apply to:
 

 

	  
 	  (1)
 	  Services provided in connection with a Céline Dion production show to be presented in Las Vegas or its replacement show; and
 
	  
 	  
 	  
 
	  
 	  (2)
 	  Services provided in connection with “Mystere” and/or “O” in Las Vegas, Nevada.
 

 

	  B)
 	  During the Term, Dragon shall be entitled, at its sole discretion, to prevent Wynn Las Vegas or any other Wynn Casino from presenting, directly or indirectly.
 

 

	  
 	 (1)
 	  the Show or any other show using same or similar characters or story line as a live presentation at any place in the world but a Wynn Casino; and
 
	  
 	  
 	  
 
	  
 	  (2)
 	  any other show whatsoever, provided that such other show is similar in type to those being or having been created, produced or presented by or through Dragon or any of its
affiliates at the time Wynn Las Vegas would be willing to present or produce such other show. Without limiting the foregoing it is agreed that such other shows would include any show of the nature of a theatre play, musical, opera, circus style show
and any other production involving many performers or disciplines. In the event Wynn Las Vegas would be willing to present such other show at any place anywhere in the world, Dragon or any of its affiliates shall have a right of first refusal to
create and/or produce said other show at the conditions proposed by Wynn Resort. Dragon’s right of first refusal shall be exercised in a timely manner.
 

 

	  6.
 	  FlNANCIAL MATTERS
 
	  
 	  
 
	  A)
 	  Wynn Las Vegas shall advance to Dragon the funds as may be required for the payment of Dragon’s share of the Show Production Costs, according to approved cash flows
required for the ongoing development and production of the Show.
 
	  
 	  
 
	  
 	 Dragon shall open and maintain a separate bank account (“Show Bank Account”) with a bank to be mutually agreed by the parties hereto which shall be used solely
for depositing all advances of Wynn Las Vegas to Dragon for its share of the Show Production Costs and for Dragon to make all payments of Show Production Costs which it has to incur pursuant to this Agreement.
 
	  
 	  
 
	  
 	  All advances made by Wynn Las Vegas to Dragon to pay such Show Production Costs shall be deposited by Dragon in the Show Bank Account and shall be used by Dragon solely for the
purpose of making all payments of Show Production Costs (any interest accrued in the Show Bank Account shall also be used by Dragon to pay Show Production Costs).
 

  THIS AGREEMENT IS STRICTLY CONFIDENTIAL

	  B)
 	  Not less than ten (10) days before the beginning of each quarterly period following the execution of this Agreement, Dragon shall submit to Wynn Las Vegas a statement
(“Quarterly Statement of Cash Requirements”) based on the Show Production Budget, as modified from time to time by mutual consent of the parties hereto, showing:
 

 

	  
 	  (1)
 	  An estimate of the Show Production Costs estimated to be incurred by Dragon during the quarterly period immediately following such notice, broken down into each of the
categories specified in the Show Production Budget or such greater detail as may be required by Wynn Las Vegas to the extent such information is available;
 
	  
 	  
 	  
 
	  
 	 (2)
 	  The amount of all cash balances expected to be held in such account as of the first day of such quarterly period; and
 
	  
 	  
 	  
 
	  
 	  (3)
 	  The total amount required to be paid to Dragon by Wynn Las Vegas in order to meet such Show Production Costs to be incurred by Dragon during said quarter.
 
	  
 	  
 	  
 
	  
 	  
 	  The Quarterly Statement of Cash Requirements submitted by Dragon shall, if requested, be accompanied by the Show Bank Account statements for the previous quarter (or, if such
bank statement is not available at such time, Dragon shall provide same to Wynn Las Vegas as soon as it receives it), and upon request by Wynn Las Vegas, Dragon shall also provide Wynn Las Vegas with a bank reconciliation showing the total amount of
Show Production Costs actually paid from the Show Bank Account for the previous quarter as compared to the amount of funds requested on the Quarterly Statement of Cash Requirements for the same quarter accompanied, if required by Wynn Las Vegas, by
sufficient supporting documentary evidence in that regard. Wynn Las Vegas shall approve or disapprove the Quarterly Statement of Cash Requirements by the start of the applicable quarterly period, and, on a monthly basis after its approval, cause to
be deposited in the Show Bank Account the necessary portion of the contribution requested to fund the Show development and production, subject to the constraints of the Disbursement Agreement for the Le Rêve project.
 

 

	  C)
 	  Wynn Las Vegas shall at its own expense at all reasonable times through its on site representative or others, have the right to examine, analyze, copy any and all documents,
books and records of Dragon relating to the Show Production Costs and the Show Bank Account, and to have same audited by its representatives.
 

  THIS AGREEMENT
IS STRICTLY CONFIDENTIAL

	  D)
 	  Wynn Las Vegas will retain control over all financial matters, including timing of disbursements, concerning the Show provided, however, that Wynn Las Vegas will fully and
meaningfully consult Dragon as reasonably requested from time to time by Dragon, especially with regards to all financial matters dealing with creative and artistic elements of the Show.
 
	  
 	  
 
	  E)
 	  Wynn Las Vegas shall have the right to place one or more on site representatives in Belgium where Dragon will conduct its development and co-production activities for the Show.
The representative(s) shall have the authority and responsibility to act on behalf of Wynn Las Vegas with regard to financial matters affecting the production of the Show. Wynn Las Vegas shall consult with Dragon with regard to the choice of the
representative(s).
 
	  
 	  
 
	  
 	  The representative shall, in conjunction with Dragon, determine all policies and procedures affecting the use of Wynn Las Vegas funds, including without limitation, methods of
procurement (including bidding procedures), budget preparation and approvals, methods of accounting and document control procedures (including disbursements), and any other activity that potentially requires the expenditure of the funds by Wynn Las
Vegas in direct connection with the Show.
 
	  
 	  
 
	 F)
 	  Dragon shall provide adequate office space and support for the representative(s).
 
	  
 	  Nothing contained herein is intended to hinder Dragon’s or its affiliates’ control of the creative aspects including the process of production of the Show. The parties
agree that the presence and exercise of powers delegated to the representative(s) are to be exercised in the best interest of the Show.
 
	  
 	  
 
	  
 	  Although the parties anticipate that much of the Show development design and production will occur in Belgium, it is the parties’ mutual intent to have, if possible,
elements carried out within North America during the development and Production Period.
 
	  
 	  
 
	  G)
 	  The parties mutually understand and recognise that for the production process or for the benefit of the creative process it will be necessary to fabricate some materials in
Belgium as long as the quality (according to industry standards, cost efficiency and after delivery services) is equal to or greater than that which may be available in the United States. All payments by Wynn Las Vegas to Dragon or affiliates, for
the costs and expenses defined in Section 2 herein, shall be based upon Budgets, other documentation and supporting schedules of deliverables as mutually agreed upon by the parties. All aspects of the Show Production Budget, including all
pre-production expenses, set design and fabrication, other scenic elements, training and rehearsal expenses, travel expenses for Dragon’s personnel shall be disbursed in accordance with the Show Production Budget and Show Production
requirements in accordance with the financial and administrative
 

 THIS AGREEMENT IS STRICTLY CONFIDENTIAL

	  
 	  procedures established by Dragon and Wynn Las Vegas and approved by Wynn Las Vegas. All expenses requiring a disbursement of over US$50,000 shall be approved in advance by Wynn
Las Vegas. Franco Dragone shall be entitled to travel First Class at all times. Louis Parenteau and Patrice Bilodeau shall be permitted Business Class travel within Europe (for flights over two hours) and to North America. All documents related to
the Show Production or operation are subject to audit by the representative(s).
 
	  
 	  
 
	  H)
 	  Wynn Las Vegas acknowledges and agrees that a fair allocation of Dragon’s or its affiliates’ general overhead will be chargeable to the Show as part of the Show
Production Costs and of the Show Operating Expenses. Such amounts shall be pre-approved by Wynn, allocated fairly based upon generally accepted US accounting principles and be a part of all Budgets contemplated hereunder. In the event that any
dispute arising out of or in connection with this Section cannot be resolved between Dragon and the representative(s) of Wynn Las Vegas or Kenneth Wynn, then Stephen A. Wynn in consultation with Franco Dragone representing Dragon shall have the sole
authority to resolve such dispute.
 
	  
 	  
 
	  I)
 	  The parties agree that, until a different amount is established by the parties in the manner set out in this Section 6, an amount of US$25,000 per month shall be charged to
the Show in respect of the overhead referred to in Section 6H).  Notwithstanding the foregoing it is acknowledged that unless the parties otherwise agree, the maximum amount payable to Dragon hereunder before the Opening Date and to be
included in the Show Production Costs shall not exceed US$850,000 in total.
 
	  
 	  
 
	 7.
 	  ENHANCEMENTS
 

 

	  Dragon acknowledges that Wynn Las Vegas may incur on a cumulative basis, up to US$1,000,000 in costs per year during the first nine years of the Term and, if the Term is
extended, during each year of the Extension, for replacement of one or more segments of the Show with new acts (“Enhancements”), which new acts may include new costumes, lighting, equipment and new choreographies. Dragon
agrees that the terms and conditions of this Agreement shall apply to such Enhancements and to render its services with respect to such Enhancements in accordance with the terms and conditions of this Agreement.
 

 

	  8.
 	  COMPENSATION
 
	  
 	  
 
	  A)
 	  As compensation to Dragon, Wynn Las Vegas shall pay to Dragon:
 

 

	  
 	  (1)
 	  In respect of each period of three months during the Term and any extension thereof (“Fiscal Quarter”), a non-refundable amount equal to twenty percent
(20%) of the Show Net Profits. The Show Net Profits is the amount by which all of the Show Revenue (as defined below) for any 
 

 THIS AGREEMENT IS STRICTLY
CONFIDENTIAL

	  
 	  
 	  Fiscal Quarter exceeds the sum of the Show Operating Expenses (as defined below) for such Fiscal Quarter (the “Show Net Profits”).
 
	  
 	  
 	  
 
	  
 	  (2)
 	  Reimbursement of all Show Production Costs incurred by Dragon pursuant to Sections 1 and 2 hereof.
 
	  
 	  
 	  
 
	  
 	  (3)
 	  Reimbursement of all indirect costs and general overhead expenses incurred by Dragon pursuant to Sections 6.H) and 6.I) hereof.
 
	  
 	  
 	  
 
	  
 	  (4)
 	  Reimbursement of all direct operating and follow up costs incurred by Dragon during the Fiscal Quarter.
 

 

	 B)
 	  Wynn Las Vegas shall retain for its own account all of the Net Ticket Revenue from the Show, and all of the Show Net profits, subject to the amounts payable to Dragon under this
agreement.
 
	  
 	  
 
	  C)
 	  As used herein:
 

 

	  
 	  (1)
 	  “Show Revenue” means, for each Fiscal Quarter, the sum of
 

 

	  
 	  
 	  a)
 	  100% of Net Ticket Revenue for the Show; and
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  b)
 	  100% of the gross proceeds (being gross revenue less sales and entertainment tax only, if any) for the sale of food and beverages sold in or immediately adjacent to the
Showroom;
 

 

	  
 	  (2)
 	  “Show Operating Expenses” means, for each Fiscal Quarter, the sum of:
 

 

	  
 	  
 	  a)
 	  Any royalty amount paid by Wynn Las Vegas to Calitri during such Fiscal Quarter calculated directly on the Net Ticket Revenue;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  b)
 	  All direct operating expenses including but not limited to Showroom and equipment maintenance costs (as opposed to major replacement costs) incurred by Wynn Las Vegas in
connection with the presentation of the Show during such Fiscal Quarter;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  c)
 	  All direct expenses incurred by Wynn Las Vegas during such Fiscal Quarter in the sale of food and beverages in or immediately adjacent to the Showroom;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 d)
 	  During the first twenty-four (24) months following the Opening Date only, such portion of the aggregate (i) initial launch advertising and promotional campaign expenses, and
(ii) pre-opening operating expenses (a budget for which shall have been agreed by the parties) relating to the presentation of the Show, each paid by Wynn Las Vegas, attributable to such Fiscal Quarter,
 

  THIS AGREEMENT IS STRICTLY CONFIDENTIAL

	  
 	  
 	  
 	  as shall be determined based on amortising all of such expenses on a straight-line basis over such 24-month period;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  e)
 	  During the first sixty (60) months following the Opening Date only:
 

 

	  
 	  
 	  
 	  (i)
 	  such portion of the Show Production Costs paid by Wynn Las Vegas;
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (ii)
 	  such portion of any guaranteed creation fee paid to Calitri; and
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  (iii)
 	  such portion of the costs incurred with name searches for the Show and filing and registration of trademarks in respect of the Show attributable to such Fiscal
Quarter,
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  as shall be determined based on amortising of all such costs on a straight-line basis over such 60-month period.
 

 

	  
 	  
 	  f)
 	  In respect of the amortisation of the capital costs of all sound, lighting and other equipment purchased by Wynn Las Vegas for Enhancement, during a period of sixty (60) months
only following the purchase of such equipment, such portion of such costs paid by Wynn Las Vegas, attributable to such Fiscal Quarter, as shall be determined based on amortising such costs on a straight-line basis over such period of time;
and
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 g)
 	  Six percent (6%) of one hundred percent (100%) of Net Ticket Revenues from the Show, which amount shall include the value of all complimentary tickets distributed by Wynn Las
Vegas. Such amount retained by Wynn Las Vegas is deemed to compensate Wynn Las Vegas for all the costs incurred for the construction or remodelling costs of the Theatre and Showroom (as defined above).
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  h)
 	  An amortisation of the financing expenses of the advances on royalties made to the creators of the Show before the Opening Date, at Wynn Las Vegas’ average cost of debt,
incurred prior to the Opening Date. Such amortisation shall be over a period of 24-months from the Opening Date. The financing expenses of the remaining balance of the advance on royalties to the creators of the Show shall be based upon Wynn Las
Vegas’ cost of debt as computed quarterly.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  i)
 	  All operating expenses incurred by Dragon and any of its affiliates, including without limitation Calitri, pursuant to this Agreement or any other agreement relating to the Show
and reimbursed by 
 

 THIS AGREEMENT IS STRICTLY CONFIDENTIAL

	  
 	  
 	  
 	  Wynn Las Vegas to Dragon or any such affiliates during such Fiscal Quarter.
 

 

	  
 	  (3)
 	  The “Net Ticket Revenue” shall be equal to the gross ticket price of all tickets sold or given away as complimentaries by Wynn Las Vegas less admission,
entertainment and sales taxes, if any, levied on such price.
 

 

	  D)
 	  For the purpose of the definitions above, Show Production Costs, Show pre-opening costs and Show Operating Expenses shall not include, unless otherwise stated,
 

 

	  
 	  (1)
 	  except for financing expenses relating to advance on royalties to the creators of the Show, any interest and any other financing expenses incurred by Wynn Las Vegas,

	  
 	  
 	  
 
	  
 	 (2)
 	  except as specifically provided above, any costs of a capital nature and any amortisation in respect thereof, except amortisation in the manner set forth above,
 
	  
 	  
 	  
 
	  
 	  (3)
 	  any costs and expenses relating to the Showroom, excluding its maintenance costs but including its theatrical and specialised equipment; and
 
	  
 	  
 	  
 
	  
 	  (4)
 	  any income taxes, real estate taxes, capital taxes or similar taxes, levies and duties payable by Wynn Las Vegas.
 
	  
 	  
 	  
 
	  D)
 	  E)
 	  All sums payable to Dragon pursuant to Section 8.A)(1) hereof shall be payable as follows:
 

 

	  
 	  Within ten (10) business days following each month of each Fiscal Quarter, Wynn Las Vegas shall provide Dragon with a statement showing the total Show Revenue received by Wynn
Las Vegas and the total Show Operating Expenses incurred by Wynn Las Vegas over such month, and Wynn Las Vegas shall pay to Dragon together with such statement twenty percent (20%) of the Show Net Profits, if any, for such month.  Then, within
fifteen (15) days following the end of each Fiscal Quarter during the Term, Wynn Las Vegas shall provide Dragon with a quarterly statement (the “Quarterly Net Profit Statement”) showing (i) the total Show Revenue received by Wynn
Las Vegas and the total Show Operating Expenses incurred by Wynn Las Vegas over such Fiscal Quarter, and (ii) the portion of the Show Net Profits due and payable to Dragon for such Fiscal Quarter, and Wynn Las Vegas shall remit to Dragon together
with such statement the portion of the Show Net Profits then still due and payable to Dragon.
 
	  
 	  
 
	  
 	 Within forty-five (45) days after the end of each Year during the Term, Wynn Las Vegas shall provide Dragon with a yearly statement showing (i) the total Show Revenue received by
Wynn Las Vegas and the total Show Operating Expenses incurred by Wynn Las Vegas over such Year, (ii) the amount of any adjustment required to the Show Net Profits as set forth below, and (iii) the portion of the 
 

  THIS AGREEMENT IS STRICTLY CONFIDENTIAL

	  
 	  Show Net Profits due and payable to Dragon, or refundable to Wynn Las Vegas, for such Year based upon the actual results of each Fiscal Quarter, and Wynn Las Vegas
shall remit to Dragon together with such statement the portion of the Show Net Profits due and payable to Dragon, if any.  Any refund due to Wynn Las Vegas from Dragon may be applied against future quarterly Show Net Profits due and payable to
Dragon until fully paid.  If, on termination or expiration, a refund remains due to Wynn Las Vegas, such refund shall be paid within ten (10) days after said expiration or termination in immediately available US$funds or bank draft as per Wynn
Las Vegas’ written instructions.
 
	  
 	  
 
	  
 	  All sums payable to Dragon pursuant to Sections 8.A)(2), (3), (4) and (5) shall be payable within ten (10) days after issuance by Dragon of invoices in respect
thereof accompanied by appropriate supporting document.
 
	  
 	  
 
	 E)
 	  All of the aforesaid amounts payable to Dragon shall be paid by Wynn Las Vegas in immediately available US$ funds or bank draft as per Dragon’s written
instructions.
 
	  
 	  
 
	  9.
 	  TERMINATION
 
	  
 	  
 	  
 	  
 	  
 
	  A)
 	  This Agreement shall automatically terminate:
 

 

	  
 	  (1)
 	  if Wynn Las Vegas files a petition in bankruptcy or is adjudicated a bankrupt or if a proceeding, petition or notice in bankruptcy, voluntary or involuntary, is filed against
Wynn Las Vegas or if Wynn Las Vegas becomes insolvent or makes an assignment for the benefit of its creditors or an arrangement pursuant to any bankruptcy law or if Wynn Las Vegas discontinues its business or if a receiver is appointed for it or its
business or if a suspension of payments is given by any court of competent jurisdiction in respect of Wynn Las Vegas; or
 
	  
 	  
 	  
 
	  
 	 (2)
 	  if either party violates any of the terms or conditions  of this Agreement, provided the other party gives sixty (60) days’ notice in writing of such violation, and
such violation is not remedied within said sixty (60) days; or
 
	  
 	  
 	  
 
	  
 	  (3)
 	  the complete run of the Show is at any time cancelled; or
 
	  
 	  
 	  
 
	  
 	  (4)
 	  upon termination of the License agreement for the Show between Wynn Las Vegas and Calitri, unless the option set forth in Section 14 has been exercised and remains in
effect and a separate Production Services Agreement for the Other Show has not been executed; or
 
	  
 	  
 	  
 
	  
 	  (5)
 	  if Franco Dragone dies or becomes completely disabled before the Opening Date and Wynn Las Vegas elects at its discretion to terminate this agreement by giving Dragon written
notice to that effect, provided such written notice is given within a period of sixty (60) days following  death or disability.
 

 THIS AGREEMENT IS
STRICTLY CONFIDENTIAL

	  B)
 	  If the Agreement herein is terminated in accordance with any of the provisions of Section 9.A), then all compensation theretofore accrued shall become due and payable
immediately to Dragon and Wynn Las Vegas shall indemnify Dragon for all costs, expenses and charges reasonably and necessarily payable by Dragon to employees or contractors and other third parties as may reasonably and necessarily result from such
termination, and Dragon shall not be obligated to reimburse Wynn Las Vegas for any payment theretofore paid by Wynn Las Vegas to Dragon.
 
	  
 	  
 
	  10.
 	  TAXES AND ASSESSMENTS
 
	  
 	  
 
	  A)
 	  All payments and compensation hereinabove provided are exclusive of any taxes of any nature and of any government whatsoever, whether the fiscal law is in force presently or at
any time in the future, except for income taxes, but are subject to withholding taxes, if any.
 
	  
 	  
 
	  B)
 	  The parties hereto agree to cooperate with each other to obtain the appropriate certificates of reduction or exemption of taxes, wherever applicable.
 
	  
 	  
 
	 11.
 	  BOOKS AND RECORDS
 
	  
 	  
 
	  A)
 	  Wynn Las Vegas shall keep or have any assignees or licensees of Wynn Las Vegas rights keep accurate books of account and records covering all transactions relating to this
Agreement and Dragon or its nominees shall have the right upon notice and at all reasonable hours during any business day to an examination of said books of account and records and all other documents and materials, whether in the possession of Wynn
Las Vegas or any assignees or sublicensees of Wynn Las Vegas’ rights or otherwise, with respect to the subject matter and the terms of this Agreement, and shall have free and full access thereto for the purpose of taking extracts or copies
thereof.
 
	  
 	  
 
	  B)
 	  Dragon shall keep accurate books of account and records covering all transactions performed by Dragon pursuant to the terms of this Agreement and Wynn Las Vegas or its nominees
shall have the right upon notice and at reasonable hours during any business day to an examination of said books of account and records with respect to the amounts reimbursable to Dragon under the terms of this Agreement, and shall have free and
full access thereto for the purpose of taking extracts or copies thereof.
 
	  
 	  
 
	  12.
 	  INDEMNITIES OF DRAGON
 
	  
 	  
 
	 A)
 	  Dragon agrees to indemnify and hold harmless Wynn Las Vegas, its members, managers, directors, officers and agents and all others claiming by, through or under Wynn Las Vegas
against any claims, demands, suits, losses, costs, expenses (including, without limitation, reasonable counsel fees, costs and disbursements), damages or recoveries (including, without limitation, any amounts paid by Wynn 
 

  THIS AGREEMENT IS STRICTLY CONFIDENTIAL

	  
 	  Las Vegas in settlement), suffered, paid, incurred or assumed by Wynn Las Vegas, its members, managers, directors, officers, agents and all other claiming by, through or under
Wynn Las Vegas by reason of any breach or non-performance of any representation, warranty or covenant of Dragon contained in this Agreement, or by Dragon’s negligence or willful misconduct.
 
	  
 	  
 
	  B)
 	  Wynn Las Vegas shall notify Dragon in writing of the existence of any such claim, demand or suit, which if sustained, would give rise to liability on the part of Dragon
hereunder, promptly after Wynn Las Vegas has knowledge of any such claim, demand or suit. Dragon shall have the option to designate counsel to defend any such claim, demand or suit designated by it and shall control such defense. Wynn Las Vegas
shall cooperate in the defense of any such claim, demand or suit and may participate in the defense of any such claim, demand or suit with counsel of its own choosing (if Wynn Las Vegas does not approve counsel designated by Dragon) at its own
expense, it being understood that Dragon shall not be responsible for the payment of any fees of any such counsel.  Wynn Las Vegas shall not take any action to compromise or settle any such claim, demand or suit unless consented to in writing
by Dragon.
 
	  
 	  
 
	 13.
 	  INDEMNITIES OF WYNN LAS VEGAS
 
	  
 	  
 
	  A)
 	  Wynn Las Vegas agrees to indemnify and hold harmless Dragon, its directors, officers and agents and all others claiming by, through or under Dragon against any claims, demands,
suits, losses, costs, expenses (including, without limitation, reasonable counsel fees, costs and disbursements), damages or recoveries (including, without limitation, any amounts paid by Dragon in settlement), suffered, paid, incurred or assumed by
Dragon, its directors, officers, agents and all other claiming by, through or under Dragon by reason of any breach or non-performance of any representation, warranty or covenant of Wynn Las Vegas contained in this Agreement, or by Wynn Las
Vegas’s negligence or willful misconduct.
 
	  
 	  
 
	  B)
 	  Dragon shall notify Wynn Las Vegas in writing of the existence of any such claim, demand or suit, which if sustained, would give rise to liability on the part of Wynn Las Vegas
hereunder, promptly after Dragon has knowledge of any such claim, demand or suit. Wynn Las Vegas shall have the option to designate counsel to defend any such claim, demand or suit designated by it and shall control such defense. Dragon shall
cooperate in the defense of any such claim, demand or suit with counsel of its own choosing (if Dragon does not approve counsel designated by Wynn Las Vegas) at its own expense, it being understood that Wynn Las Vegas shall not be responsible for
the payment of any fees of any such counsel Dragon shall not take any action to compromise or settle any such claim, demand or suit unless consented to in writing by Wynn Las Vegas.
 

 THIS AGREEMENT IS STRICTLY CONFIDENTIAL

	  14.
 	  OPTION
 
	  
 	  
 
	  Wynn Las Vegas or an affiliate has been granted an option to produce and present a second new first-class theatrical entertainment attraction
(the “Other Show”) to be presented at Le Rêve or another Wynn Casino, which option shall be exercised by no later than December 31, 2003.  Wynn Las Vegas hereby represents and agrees that in the event the
option is exercised, then it or its affiliate shall hire and retain the services of Dragon on terms and conditions no less favourable to Dragon than those provided in this Agreement.
 
	  
 	  
 
	  15.
 	  MISCELLANEOUS
 
	  
 	  
 
	  A)
 	  This Agreement together with any attachments hereto shall be the definitive Agreement between the parties and define each party’s rights and obligations to the other. This
Agreement may be modified with the consent of both parties only by written amendment, which, upon execution shall become a part of this Agreement with the same full force and effect as if first written.
 
	  
 	  
 
	 B)
 	  Dragon acknowledges that Wynn Las Vegas and its affiliates conduct businesses that are subject to and exist because of privileged licenses issued by governmental authorities in
the State of Nevada and elsewhere that regulate gaming and related matters.  In the event Dragon is found unsuitable by the appropriate governmental authority or if Wynn Las Vegas is advised by such governmental authority to terminate its
relationship with Dragon, or Wynn Las Vegas reasonably determines, based on its internal compliance investigation and based on substantial, objective and evidenced elements, that it is required to terminate its relationship with Dragon to avoid the
loss of its privileged licenses or receive sanctions, Wynn Las Vegas shall be entitled to terminate the agreement between the parties without liability to Dragon except for the obligation to pay all costs incurred to the date of such
termination.
 
	  
 	  
 
	  
 	  Notwithstanding the above, Dragon shall be allowed an opportunity to pursue any appeal rights it may have with respect to any governmental determination which Wynn Las Vegas is
using as the basis of exercising its termination rights.
 
	  
 	  
 
	  
 	  If this Agreement is terminated for any reason other than as a result of Dragon’s activities as referred to above or as otherwise provided in this Agreement, Dragon shall
be entitled to full indemnification by Wynn Las Vegas for all and any provable losses incurred by Dragon due to such termination.
 
	  
 	  
 
	  C)
 	  Each party undertakes not to disclose the existence of this Agreement to any third party except to its professional advisors and its consultants and to such other persons as is
reasonably required in order to consummate the transactions contemplated herein.
 

 THIS AGREEMENT IS STRICTLY CONFIDENTIAL

	  
 	  This paragraph shall survive the termination of this Agreement. This confidentiality restriction does not apply in the event of litigation between the parties in relation to
this Agreement, or in the event its disclosure is compelled by law or regulation or by order of any court or regulatory authority having jurisdiction over one of the parties.  In this regard, Dragon acknowledges and agrees that this Agreement
may be required to be disclosed by Wynn Las Vegas and its affiliates in connection with the financing of Le Rêve.
 
	  
 	  
 
	  D)
 	  This Agreement shall be governed by and construed in accordance with the laws and of the State of Nevada, without regard to conflict of laws principles, and the parties hereby
consent to the exclusive jurisdiction of the state or federal court located in Clark County, Nevada, for any dispute arising out of or relating to this Agreement.
 
	  
 	  
 
	  E)
 	  Neither this Agreement nor any rights or obligations conveyed hereunder may be transferred, assigned, or delegated (including by sublicense) without the written consent of the
other party, which consent may be withheld for any reason whatsoever. Notwithstanding the foregoing, this Agreement may be assigned by Wynn Las Vegas or Dragon to any of its affiliated entities, without the prior consent of the other party; provided
that such assignment shall not discharge or otherwise affect the obligations of  the assignor to perform, fulfil and satisfy its obligations and responsibilities hereunder. This Agreement shall inure to the benefit of and be binding upon the
parties hereto and each of their respective successors, permitted assigns, administrators and/or legal representatives.
 
	  
 	  
 
	 F)
 	  Faxed signatures shall be sufficient to bind each party to this Agreement and this Agreement may be executed in one or more counterparts, which shall form together the entire
Agreement between the parties.
 
	  
 	  
 
	  G)
 	  Nothing herein contained shall constitute a partnership or joint venture between the parties hereto. No party shall act in any manner contrary to the terms of this Section 15.G)
and no party shall become liable by any representation, act or omission of the other.
 
	  
 	  
 
	  H)
 	  Except as otherwise specifically set forth above, however, nothing contained herein shall be interpreted or construed as creating on Dragon, its staff and personnel, including
Franco Dragone, an obligation to devote time and resources on an exclusive basis.
 
	  
 	  
 
	  I)
 	  This Agreement constitutes the complete and exclusive agreement between the parties and replaces and supersedes all prior agreements, negotiations, statements, memoranda and
understandings with respect to its subject matter.
 

  THIS AGREEMENT IS STRICTLY CONFIDENTIAL

	 J)
 	  The voiding of any provision of this Agreement by any Court shall not serve as to void or place in less than full force and effect any other provision of this
Agreement.
 

 

	  This Agreement is agreed to and accepted this 31st day of October 2002 by those parties whose duly authorized signatures are set forth below:
 

 

	  
 	  PRODUCTIONS DU DRAGON S.A.
 	  
 	  
 	  WYNN LAS VEGAS L.L.C.
 	  
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  Per:
 	  WYNN RESORTS HOLDINGS, LLC
 Its Sole Member
 	  
 
	  
 	  
 	 Per:
 	  VALVINO LAMORE, LLC,
 Its Sole Member
 	  
 
	  
 	  
 	  Per:
 	  WYNN RESORTS, LIMITED
 Its Sole Member
 	  
 
	  
 	  
 	  
 	  
 	  
 
	  Per:
 	  /s/ FRANCO DRAGONE
 	  
 	  Per:
 	  /s/ STEPHEN A. WYNN
 	  
 
	  
 	 
 	  
 	  
 	 
 	  
 
	 Franco Dragone
 	   
 	   
 	  Stephen A. Wynn,
 Chairman and Chief Executive 
 Officer
 	   
 

  As to the personal obligations in Section 1.E):

	  /s/ FRANCO DRAGONE
 	  
 
	 
 	  
 
	  Franco Dragone, individually
 	   
 

  THIS AGREEMENT IS STRICTLY CONFIDENTIAL

   SCHEDULE 1
  SHOW PRODUCTION BUDGET

	  Artistic Direction & Development
 	  
 	  $
 	  5,362,242
 	  
 
	  Production Development
 	  
 	  $
 	  6,652,293
 	  
 
	 Show Components
 	  
 	  $
 	  4,933,351
 	  
 
	  Logistics & Travel
 	  
 	  $
 	  5,452,114
 	  
 
	  Creation Fee
 	  
 	  $
 	  2,000,000
 	  
 
	  TOTAL PRODUCTION BUDGET
 	  
 	  $
 	  24,400,000
 	  
 

   SCHEDULE 2
  CONSTRUCTION BUDGET

	  Theater Construction:
 	  
 	  
 	  
 	  
 
	  
 	 Base Construction
 	  
 	  $
 	  32,259,917
 	  
 
	  
 	  Interiors
 	  
 	  $
 	  3,341,914
 	  
 
	  
 	  Theatrical Equipment
 	  
 	  $
 	  22,784,377
 	  
 
	  
 	  Sub Total
 	  
 	  $
 	  58,386,208
 	  
 
	  Soft Costs
 	  
 	  
 	  
 	  
 
	  
 	 Design/Engineering/CM Expenses
 	  
 	  $
 	  3,196,197
 	  
 
	  
 	  Sub Total
 	  
 	  $
 	  3,196,197
 	  
 
	  Project Contingency
 	  
 	  
 	  
 	  
 
	  
 	  Construction Contingency
 	  
 	  $
 	  2,919,310
 	  
 
	  
 	  Soft Costs Contingency
 	  
 	  $
 	  79,905
 	  
 
	  
 	 Sub Total
 	  
 	 $
 	 2,999,215
 	  
 
							

 

	 16.
 	  
 	  
 	 Estimated Contractor Fee
 	  
 	 $
 	 1,335,811
 	  
 
	 17.
 	  
 	  
 	 TOTAL DESIGN & CONSTRUCTION
 	  
 	 $
 	 65,917,431
 	  
 

 THIS AGREEMENT IS STRICTLY CONFIDENTIAL

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