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Exhibit 10.37    
  

 
  EXECUTIVE EMPLOYMENT AGREEMENT    
  

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

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

        1.    Employment    

        A.    Employer
hereby employs Employee in the capacities of Executive Vice President/Law and Corporate Affairs, and Secretary of the corporation, and such other capacity or
capacities of equal status and responsibility as the Chief Executive Officer ("CEO") of Employer shall from time to time determine, reporting directly and solely to Employer's CEO, and Employee hereby
accepts such employment, all upon and subject to the terms and conditions herein set forth. 

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

        C.    Except
as otherwise set forth in subparagraph (4) immediately below, during the term of his employment hereunder Employee shall not: 

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

        (2)  Engage
in any activity competitive with or adverse to the welfare or business or related interests of Employer or any of its subsidiaries or affiliates, whether alone,
as a partner, officer, director, employee or shareholder of any other corporation or other entity, or otherwise, directly or indirectly, except that the ownership of not more than one percent (1%) of
the stock of any one or more publicly traded corporations shall not be deemed violative of this subparagraph (2); 

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

 

otherwise,
directly or indirectly, except that ownership of not more than one percent (1%) of the stock of any one or more publicly traded corporations shall not be deemed violative of this
subparagraph (3). 

        (4)  Anything
to the contrary notwithstanding, Employee shall be permitted to remain an active member of the law firm of Sills Cummis Radin Tischman Epstein & Gross,
P.A. and its successors, and subject to devoting his principal time to the affairs of Employer pursuant to this Agreement, Employee shall be permitted to devote working time and attention to the
affairs of and the practice of law for such law firm. 

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

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

        3.    Compensation.    

        A.    In
consideration of the services to be rendered by Employee hereunder, Employer agrees to pay or cause to be paid to Employee, and Employee agrees to accept, the sum of
$650,000.00 (the "Base Salary") for each twelve (12) month period following the effective date of this Agreement, which shall be paid on regularly recurring pay periods established by Employer.
The Base Salary shall be subject to increase (not decrease) pursuant to periodic review by Employer, provided that any determination to increase the
Base Salary shall be within Employer's sole discretion. 

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

        4.    Vacation and Other Benefits.    

        A.    Employee
shall be entitled to a reasonable vacation each year of his employment hereunder, as well as other employment benefits, including the use of a car in Nevada, if
necessary, and death and retirement plans, and group insurance programs for medical, hospitalization, life, and long term disability, and the like, afforded in general to senior executives of Employer
of comparable status and tenure, and consistent with Employer's policies for executive employment benefits. Employer may, at its sole discretion, change such benefits policies. 

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

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        5.    Expenses.    

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

        6.    Covenants and Confidential Information.    

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

        (1)  Own,
manage, control, or participate in the ownership, management or control of, or be employed or engaged by, or otherwise affiliated or associated with, as a
consultant, independent contractor or otherwise, any other corporation, partnership, proprietorship, firm, association or other business entity, or otherwise engage in any business which is engaged in
any manner in the operation of any gaming venture(s), respecting casinos, Indian gaming, river boat gaming, or otherwise, within any county of any state in which there is located any gaming facility
owned, managed or under development to be owned or managed by Employer ("Facility"), determined as of the date Employee ceases to be employed hereunder;  provided, that the ownership of not more than one
percent (1%) of the stock of any one or more publicly traded corporations shall not be deemed a
violation of this subparagraph (1); 

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

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

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

        B.    The
provisions of subparagraphs 6A(1) through 6A(4) hereof shall be operative throughout the Term except as provided in the remainder of this paragraph 6B. In the
event (i) of a "Change in Control", the provisions of subparagraphs 6A(1), 6A(2) and 6A(3) shall be operative only so long as Employee remains an employee of Employer, and (ii) Employee
is terminated for "Cause" (as defined in paragraph 8 hereof), the provisions of subparagraphs 6A(1), 6A(2) and 6A(3) shall be operative during the Term and for a period of one (1) year
thereafter. All obligations created by the terms of subparagraph 6A(4) 

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are
of a continuing nature and shall remain in effect at all times during Employee's period of employment hereunder and for a period of five (5) years thereafter;  provided, that if at any time
following the termination of this Agreement any Confidential Information shall become part of the public domain through no
fault of Employee, then the restrictions and limitations of subparagraph 6A(4) shall not apply to such particular information. 

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

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

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

        F.    If
any of the covenants contained in this paragraph 6 are determined by a court of competent jurisdiction to be unenforceable or invalid because of the geographic
scope or time duration of such restrictions, such provisions shall be deemed retroactively modified to provide for the maximum geographic scope and time duration that would permit such provisions to
be valid and enforceable. However, no such retroactive modification shall affect any of Employer's rights hereunder arising out of the breach of any such covenant, including without limitation
Employer's right to terminate this Agreement without further liability to Employee. The parties hereby authorize a court of competent jurisdiction to reform this Agreement to give effect to the
retroactive modification provisions contained in this paragraph 6F. 

        7.    Illness, Incapacity or Death During Employment.    

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

        (1)  In
the event of such termination, Employee shall have the right to the assignment of any and all Employer group insurance policies or health protection plans if and to
the extent that such policies and plans permit assignment out of the group to the individual Employee. 

        (2)  In
the event that Employer elects to terminate this Agreement by reason of 

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

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

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

        8.    Termination for Cause; Without Cause.    

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

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

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

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

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

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

        D.    The
employment of Employee under this Agreement may be terminated without Cause at any time. In any such case Employer shall have no liability arising out of such
termination except 

5

 

for
the following severance obligations to Employee: Employee shall have the same rights provided in paragraphs 9B and 9C hereof, as if such termination without Cause had occurred following a Change
in Control. 

        9.    Optional Termination Upon Change In Control.    

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

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

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

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

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

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

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

        (4)  the
stockholders of Employer approve (i) a merger or consolidation of Employer with any other corporation, other than a merger or consolidation that would result
in the voting securities of Employer outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving
entity) at least 80% of the combined 

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voting
power of the voting securities of Employer or such surviving entity outstanding immediately after such merger or consolidation, or (ii) a plan of complete liquidation of Employer or an
agreement for the sale or other disposition by Employer of all or substantially all of its assets. 

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

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

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

        (3)  As
a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination hereunder, it is possible that Excise Tax
Gross-Up Payments will not have been made by Employer that should have been made consistent with the calculations required to be made hereunder ("Underpayment"). In the event that Employee
is thereafter required to make a payment of any Excise Tax, any such Underpayment calculated in accordance with and in the same manner as the Excise Tax Gross-Up Payment in subparagraph
9E(1) hereof shall be promptly paid by Employer to or for the benefit of Employee. In the event that the Excise Tax Gross-Up Payment exceeds the amount subsequently determined to be due,
such excess shall constitute a loan from Employer to Employee which shall be repaid in full, together with interest thereon at the rate provided in Section 1274(b)(2)(B) of the Code, on the
(fifth) 5th day after written demand by Employer. 

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        10.    Severable Provisions.    

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

        11.    Binding Agreement.    

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

        12.    Attorneys' Fees.    

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

        13.    Notices.    

        Any
notice, request, demand, waiver, consent, approval or other communication (a "Notice") which is required or permitted hereunder shall
be in writing as referenced below. All Notices may be delivered by telecopier or similar device, with a true copy thereof sent the same day by Federal Express, DHL Courier, or other similar overnight
delivery service providing receipt against delivery, and shall be deemed given or made upon receipt thereof. All Notices are to be given or made to the parties at the following addresses (or to such
other address as any party may designate by a Notice given in accordance with the provisions of this paragraph 13): 

	If to Employer:	 	Park Place Entertainment Corporation

26 Main Street

Chatham, New Jersey 07928

Attention: General Counsel
	

If to Employee:	
 	

Clive S. Cummis

7 Oak Bend North

Llewellyn Park

West Orange, NJ 07075

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

        15.    Governing Law.    

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

        16.    Captions and Paragraph Headings.    

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

8

 

        17.    Entire Agreement.    

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

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

	 	 	Employer:
	

 	
 	

PARK PLACE ENTERTAINMENT CORPORATION
	

 	
 	

By:	
 	

/s/ Arthur M. Goldberg
 Arthur M. Goldberg

Chief Executive Officer
	

 	
 	

Employee:
	

 	
 	

/s/ Clive S. Cummis
 Clive S. Cummis

9

 
 
 

AGREEMENT    
  

        THIS AGREEMENT, made and entered into as of December 31, 2001, by and between Park Place Entertainment Corporation, a Delaware corporation (the "Company"),
with its principal office in Las Vegas, NV, and Clive S. Cummis, an individual residing at 7 Oak Bend North, Llewellyn Park, West Orange, NJ 07075 ("Cummis"), reads as follows: 

        I.    RECITALS    

        1.    The
Company and Cummis are party to that certain Employment Agreement entered into as of January 1, 1999, which expires on December 31, 2002 (the "Prior
Agreement"). The Company and Cummis have mutually agreed that Cummis' will resign his executive officer positions with the Company, effective as of December 31, 2001 and that Cummis will
transition out of his duties and employment over a period beginning on January 1, 2002 and ending with Cummis retiring from employment on December 31, 2004 (the "Retirement Date"). 

        2.    The
Company and Cummis wish to enter into a new agreement, effective January 1, 2002, to (a) supercede the Prior Agreement, except as specifically noted
below, and (ii) provide for transitional services to be rendered by Cummis in a manner reasonably requested by the Company's Chief Executive Officer (the "CEO") prior to the Retirement Date. 

        II.    SUBSTANTIVE PROVISIONS    

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

        1.    The
Company and Cummis agree that the Prior Agreement is terminated and superceded by this Agreement, effective on December 31, 2001, except as noted in
Section 4 below. Effective on such date, Cummis shall resign all offices with the Company and all affiliates, except his position as Vice-chairman and a member of the board of
directors of the Company. The parties further agree that Cummis shall continue in employment and perform such limited duties for the Company as Senior Advisor to the CEO, beginning on
January 1, 2002, and shall finally end his employment on the Retirement Date. During the term, Cummis shall be permitted to accept another position; provided, however, that Cummis agrees to
fully cooperate with the Company in providing information or knowledge, and to permit his deposition to be taken, in connection with any existing or future litigation against the Company, whether
administrative, civil or criminal in nature. 

        2.    In
consideration of the employment under Section 1 and the obligations undertaken by Cummis under Section 1 and 4, the Company shall pay or cause to be paid
or provided to Cummis, subject to applicable employment and income tax withholdings and deductions, the following amounts and benefits: 

        (a)  Compensation
through the Resignation Date of $1,000 per month, paid in a manner consistent with the Company's general payroll practices on the first business day of each
month. 

        (b)  In
full and complete satisfaction of all obligations of the Company under the Prior Agreement, the sum of $1,464,000, payable in equal bi-weekly installments
from January 1, 2002 through the Retirement Date. 

        (c)  A
bonus for the Company's fiscal year ended December 31, 2001 in such amount as shall be determined by the compensation committee of the board in accordance with
the formula previously adopted by such committee, payable promptly following such determination. 

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        (c)  A
continuation of insurance coverage (group health, life, and long term disability) as in effect on the date of this Agreement, as the same may be changed from time to
time for employees generally, through the Retirement Date, or the earlier date that any such coverage is available from another employer, and Cummis agrees to keep the Company fully informed as to any
other coverage so provided. 

        (d)  Continued
vesting of existing stock options through the Retirement Date at which time all options shall expire and no longer be exercisable. In the event of Cummis'
death prior to the Retirement Date, such options will be exercisable only until the earlier of twelve months following Cummis' death or the Retirement Date. 

All
payments and benefits under this Section 2 (except as otherwise provided in subparagraph (d)) shall be made to Cummis (or his estate) regardless of whether he dies or becomes disabled
during the period in which payments are to be made. 

        3.    Cummis
agrees and acknowledges that the Company, on a timely basis, has paid, or agreed to pay, to Cummis all other amounts due and owing based on his prior services. 

        4.    (a)
Notwithstanding the termination of the Prior Agreement, Cummis agrees that all of the provisions of Sections 6A., C., D., E., and F. of the Prior Agreement shall
continue in full force and effect through the Retirement Date or until the resolution of any dispute instituted thereunder. 

                (b)  Nothing
in this Section 4 shall be construed to prohibit Cummis from being connected as a partner, principal, shareholder, associate, counsel or
otherwise with another lawyer or a law firm which performs services for clients engaged in any business or enterprise that is competitive with any business or enterprise in which the Company is
engaged, provided that Cummis, so long as he is a director of the Company, is not personally involved, directly or indirectly, in performing services for any such clients during the period specified
in the Prior Agreement and provided further that such lawyer or law firm
takes reasonable precautions to screen Cummis from participating for the period specified in the Prior Agreement in the representation of any such clients. 

        5.    Cummis
represents and acknowledges that (a) Cummis has been advised by the Company to consult Cummis's own legal counsel in respect of this Agreement, and
(b) that Cummis has had full opportunity, prior to execution of this Agreement, to review thoroughly this Agreement with Cummis' counsel. 

        6.    Cummis
hereby certifies that he has read the terms of this Agreement, that he has the opportunity to discuss it with his attorney, and that he understands its terms and
effects. Cummis acknowledges, further, that he is executing this Agreement of his own volition with a full understanding of its terms and effects. None of the above-named parties, nor their agents,
representatives, or attorneys have made any representations to Cummis concerning the terms or effects of this Agreement other than those contained herein. 

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

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

11

 

        9.    The
Company and Cummis mutually consent to the resolution by arbitration, in accordance with the National Rules for the Resolution of Employment Disputes of the American
Arbitration Association, to be held in Atlantic City, NJ, of all claims or controversies arising out of this Agreement other than a claim that is primarily for an injunction or other equitable relief.
The Company and Cummis shall share the fees and costs of the arbitrator and all other costs of a party in connection with any arbitration, including legal fee and expenses, shall be borne by the party
incurring the cost(s). 

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

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

	ATTEST:	 	PARK PLACE ENTERTAINMENT CORPORATION
	

 	
 	

 	
 	

 
	 	 	By:	 	/s/ STEVEN BELL
	
	 	 	 	

	Secretary	 	 	 	Steven Bell

Senior Vice President
	

 	
 	

/s/ CLIVE S. CUMMIS
	
	 	

	Witness	 	Clive S. Cummis

12

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Exhibit 10.37

EXECUTIVE EMPLOYMENT AGREEMENT

AGREEMENTQuickLinks
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Exhibit 10.38    
  

 
 

PARK PLACE ENTERTAINMENT CORPORATION    
  

 
 

Supplemental Retention Plan    
  

 
 
 

ARTICLE 1
  
    PURPOSE    
  

        In recognition of the valuable services provided to the Park Place Entertainment Corporation (the "Company") by its Executive Vice Presidents and other senior
executives of the Company and its subsidiaries designated as set forth below, the Board of Directors of the Company wishes to adopt the Park Place Entertainment Corporation Supplemental Retention Plan
(the "Plan"), effective November 1, 2001, to provide certain additional benefits to those individuals. This Plan is intended to be a non-qualified retirement plan which is unfunded
and maintained primarily for the purpose of providing deferred compensation for a "select group of management or highly compensated employees," within the meaning of Sections 201(2), 301(a)(3) and
401(a)(1) of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA") and, as such, to be exempt from the provisions of Parts II, III and IV of Title I of ERISA. 

 
 

ARTICLE 2
  
    DEFINITIONS    
  

        Account.    "Account" means, with respect to a Participant, the Account established on the books of the Employer pursuant to
Article 4. 

        Administrator.    "Administrator" means the committee that has been appointed to administer the Plan. 

        Affiliate.    "Affiliate" means any firm, partnership, or corporation that directly or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with the Company. 

        Base Salary.    "Base Salary" means the rate of base salary paid to each Participant on the date an allocation of Rights is
credited to a Participant under Article 4, as determined by the Employer. 

        Beneficiary.    "Beneficiary" means the beneficiary(ies) (or contingent beneficiary(ies) in the event that the primary
beneficiary does not survive the Participant) designated by the Participant, who will receive any portion of the Supplemental Benefit payable upon the death of the Participant. 

        Board.    "Board" means the Board of Directors of the Company. 

        CEO.    "CEO" mean the Chief Executive Officer of the Company. 

        Change of Control.    "Change of Control" means the first to occur of any of the following events: 

        (a)  An
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a "Person") of beneficial ownership
(within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 20% or more of either (1) the then outstanding shares of common stock of the Company (the "Outstanding Company Common Stock") or (2) the combined
voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the "Outstanding Company Voting Securities") (a "Control Purchase");
excluding, however, the following: (1) Any acquisition directly from the Company, other than an acquisition by virtue of the exercise of a conversion privilege unless the security being so
converted was itself acquired directly from the Company, (2) Any acquisition by the Company, (3) Any acquisition by any employee benefit plan (or related trust) sponsored or maintained
by the Company or any corporation controlled by the Company, (4) Any acquisition by any corporation pursuant to a transaction which complies with clauses (1), (2) and (3) of
subsection (c) of this definition, or (5) Any acquisition by Barron Hilton, the Charitable 

2

 

Remainder Unitrust created by Barron Hilton to receive shares from the Estate of Conrad N. Hilton, or the Conrad N. Hilton Fund; or 

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

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

        (d)  The
approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. 

        Code.    "Code" means the Internal Revenue Code of 1986, as amended from time to time. 

        Company Stock.    "Company Stock" means the shares of common stock of the Company that may be issued or transferred under the
Plan. 

        Disabled or Disability.    "Disabled or Disability" means that the Participant is disabled due to sickness or injury that
qualifies the Participant for disability under the Employer's long-term disability plan. A Participant shall be considered totally disabled on the date he qualified for such
long-term disability payments. 

        Effective Date.    "Effective Date" means November 1, 2001. 

3

 

        Employee.    "Employee" means any executive of the Employer. 

        Employer.    "Employer" means the Company and any Affiliate which is authorized by the Board to adopt the Plan and to cover its
eligible Employees and whose designation as such has become effective upon acceptance of such status by the board of directors of the Affiliate. An Affiliate may revoke its acceptance of such
designation at any time, but until such acceptance has been revoked, all the provisions of the Plan and amendments thereto shall apply to the eligible Employees of the Affiliate. In the event such
designation is revoked by the board of directors of any Affiliate, the Plan shall be deemed terminated only with respect to such Affiliate. 

        Fair Market Value.    "Fair Market Value" means the amount determined as follows: (x) if the principal trading market for
the Company Stock is a national securities exchange or the Nasdaq National Market, the mean between the highest and lowest reported sale price thereof on the relevant date or (if there were no trades
on that date) the latest preceding date upon which a sale was reported, or (y) if the Company Stock is not principally traded on such exchange or market, the mean between the last reported
"bid" and "asked" prices of Company Stock on the relevant date, as reported on Nasdaq or, if not so reported, as reported by the National Daily Quotation Bureau, Inc. or as reported in a
customary financial reporting service, as applicable and as the Board determines. If the Company Stock
is not publicly traded or, if publicly traded, is not subject to reported transactions or "bid" or "asked" quotations as set forth above, the Fair Market Value per share shall be as determined by the
Board. 

        Participant.    "Participant" means any Employee who is selected by the CEO of the Company to participate in the Plan pursuant
to Section 3 and who is a member of a select group of management or highly compensated employees within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA. In the event of the
death or incompetency of a Participant, the term shall mean the Participant's personal representative or guardian. 

        Plan.    "Plan" means the Park Place Entertainment Corporation Supplemental Retention Plan as set forth herein and as it may be
amended from time to time. 

        Plan Year.    "Plan Year" means each calendar year during which the Plan is in effect. 

        Retirement.    "Retirement" means (i) the termination of the Participant's employment with the Employer (for reasons
other than death) on or after age 65, or on or after the combination of the Participant's age and Years of Service equals at least 55, or (ii) in the case of a Participant who ceases to be
employed by, or provide services to the Employer, for any reason prior to Retirement, the date the former Participant would have reached Retirement had he or she not terminated employment with the
Employer but only taking into account the number of Years of Service the Participant had at the time of cessation of employment. 

        Right.    "Right" means a right equivalent to one share of Company Stock. The Company may issue to a Participant a certificate
evidencing his or her Rights awarded under the Plan. 

        Rights Agreement.    "Rights Agreement" means an agreement provided to each Participant that provides the number of Rights
awarded and the terms and conditions related to the Rights awarded and constitutes the Participant's acknowledgement that the award is subject to the terms of the Plan and the Participant's acceptance
of the Administrator's authority and discretion. 

        Right Value.    "Right Value" means, at any time, the value of each Right issued under the Plan, which value shall be equal to
the Fair Market Value of a share of Company Stock. 

        Supplemental Benefit.    "Supplemental Benefit" means a supplemental retirement benefit equal to the balance of the
Participant's Account as determined under Article 4 as of any date of reference. 

4

 

        Years of Service.    "Years of Service" means the number of years that the Participant has been employed with the Employer
commencing on or after December 31, 1998. 

 
 

ARTICLE 3
  
    ELIGIBILITY    
  

        Each Employee shall be a Participant in the Plan if, and as of the date, such Employee is so designated by the CEO. 

 
 

ARTICLE 4
  
    SUPPLEMENTAL BENEFIT    
  

        4.1    The Supplemental Benefit of a Participant shall be an amount equal to the value of the Participant's Account on the date of reference, determined
as provided herein. 

        4.2    The
Employer shall create and maintain an unfunded Account on its books to reflect the number of Rights credited to each Participant hereunder in any Plan Year and the
Rights Value of such Rights. The number of Rights credited to a Participant's Account in any Plan Year shall be determined by the CEO, taking into account such factors as Base Salary, a multiplier
(based on job title) and such other factors are the CEO determines to be relevant. A Participant's initial credit and any subsequent credits shall be shown on Schedule A (as revised from time
to time) opposite the Participant's name. No Account shall be credited with a fractional Right. Each grant of Rights to a Participant shall be evidenced by a Rights Agreement. 

        4.3    Notwithstanding
the creation of an Account for each Participant, no Participant or any other person shall, under any circumstance, acquire any property interest in any
specific assets of the Employer. In the event a dividend is declared with respect to shares of the Company's Stock, the amount of the dividend that would have been distributed as to those Rights had
each such Right been a share of Company Stock, shall be converted into additional Rights based upon the Fair Market Value of the Company Stock on the date of the dividend is paid and credited to the
Participant's Account. 

        4.4    The
value of a Participant's Account as of any date shall be determined as if those Rights were shares of Company Stock. The Administrator shall provide to each
Participant, not less frequently than
quarterly, a statement in such form as the Administrator deems desirable setting forth the balance standing to the credit of each Participant in his or her Account. 

 
 

ARTICLE 5
  
    VESTING    
  

        5.1    A Participant's entitlement to the Rights credited to the Participant's Account shall vest at a rate of twenty percent (20%) of the Rights on
each of the first two anniversaries of the date as of which the Rights are initially credited to the Participant's Account, and thirty percent (30%) on each of the two succeeding anniversaries of such
date, in each case if the Participant is employed by, or providing service to, the Employer on such anniversary. The vesting of the Rights is cumulative and each grant of Rights shall be fully vested
on the fourth anniversary of the date as of which such Rights were initially credited to the Participant's Account, if the Participant continues to be employed by, or provide services to, the Employer
through such date. If the vesting percentage produces fractional Rights, the number of Rights that vest shall be rounded down to the nearest whole Rights. 

        5.2    Unless
determined otherwise by the CEO or specified otherwise in the Rights Agreement, if a Participant ceases to be employed by, or provide services to the Employer,
for any reason except death or Disability, any Rights which have not otherwise vested shall terminate as of the date on which 

5

 

the Participant ceases to be employed by, or provide services to the Employer, determined without regard to any severance or salary continuation plan or program. 

        5.3    If
a Participant dies or becomes Disabled while still an Employee any Rights that have not otherwise vested shall vest as of the date of the Participant's death or
Disability. 

        5.4    Upon
a Change of Control any Rights that have not otherwise vested as of the date of the Change of Control shall be fully vested as of such date, if the Participant
continues to be employed by, or provide services to, the Employer through such date. 

 
 

ARTICLE 6
  
    DISTRIBUTION OF SUPPLEMENTAL BENEFIT    
  

        6.1    A Participant's Supplemental Benefit shall be distributed in that number of shares of Company Stock that equals the number of Rights credited to
the Participant's Account and being distributed. A Participant does not have the right to receive a cash payment under the Plan. 

        6.2    The
Employer shall distribute the Supplemental Benefit to a Participant (or the Participant's Beneficiary) in a single distribution as soon as reasonably practicable on
the first day of the thirteenth month following the Participant's Retirement. Alternatively, prior to Retirement, the Participant may make a written election in the manner determined by the
Administrator, to delay distribution to the month of January in any of the next four Plan Years and/or to have the distribution commence in the Plan Year it would otherwise have been made or in
January of any of the next four Plan Years in an equal number of shares of Company Stock over a designated period (not to exceed ten years). 

        6.3    If
a Participant dies after beginning to receive a Supplemental Benefit in installments, any further payments shall cease and the balance of the distribution shall be
made to the Participant's Beneficiary in a single distribution as soon as reasonably practicable following the Participant's death in accordance with procedures established by the Administrator. 

        6.4    If
a Participant dies prior to beginning to receive a Supplemental Benefit, the Participant's Beneficiary shall be entitled to receive the Supplemental Benefit in a
single distribution, as soon as administratively feasible in accordance with procedures established by the Administrator. 

        6.5    In
the event a Participant attains eligibility for Retirement while employed by the Employer, such Participant may make a written election, in the manner and at the time
determined by the Administrator, to receive an in-service distribution of a number of shares of Company Stock equal to up to 50% of the Participant's vested Supplemental Benefit,
determined at the time of the election. Unless otherwise permitted by the Administrator, a Participant may only elect one in-service distribution during the Participant's employment with
the Employer. An in-service distribution may be made on the first day of the thirteenth month following the Participant's election, or in any of the next four Plan Years, in either a
single distribution or in a distribution of an equal number of shares of Company Stock over a designated period (not to exceed five years). 

 
 

ARTICLE 7
  
    FUNDING AND SHARES    
  

        7.1    The Board may, but shall not be required to, authorize the establishment of a trust by the Employer to serve as the funding vehicle for the
benefits described herein. In any event, the Employer's obligations hereunder shall constitute a general, unsecured obligation, payable solely out of its general assets, and no Participant shall have
any right to any specific assets of the Employer. 

        7.2    Subject
to adjustment as described below, the aggregate number of shares of Company Stock that may be issued or transferred under the Plan is 2,500,000 shares. The
shares issued under the Plan 

6

 

will be treasury shares that have been reacquired by the Company. If any Rights are forfeited, the shares of Company Stock represented by such Rights shall again be available for purposes of the
Plan. 

        7.3    If
there is any change in the number or kind of shares of Common Stock outstanding (i) by reason of a stock dividend, spinoff, recapitalization, stock split, or
combination or exchange of shares, (ii) by reason of a merger, reorganization (including a change in the Company's business structure from a corporation to a limited liability company) or
consolidation in which the Company is the surviving corporation, (iii) by reason of a reclassification or change in par value, or (iv) by reason of any other extraordinary or unusual
event affecting the outstanding Company Stock as a class without the Company's receipt of consideration, or if the value of outstanding shares of Company Stock is substantially reduced as a result of
a spinoff or the Company's payment of an extraordinary dividend or distribution the maximum number of shares of Company Stock available for Rights, the number of shares covered by outstanding Rights,
the kind of shares issued under the Plan, and the price per share of such Rights may be appropriately adjusted by the Administrator acting on behalf of the Company to reflect any increase or decrease
in the number of, or change in the kind or value of, issued shares of Company Stock; provided, however, that any fractional shares resulting from such adjustment shall be eliminated. Any adjustments
determined by the Administrator shall be final, binding and conclusive. 

 
 

ARTICLE 8
  
    ADMINISTRATION OF THE PLAN AND DISCRETION    
  

        8.1    The Administrator shall have full power and authority to interpret the Plan, to prescribe, amend and rescind any rules, forms and procedures as
it deems necessary or appropriate for the proper administration of the Plan and to make any other determinations, including factual determinations, and to take any other such actions as it deems
necessary or advisable in carrying out its duties under the Plan. All action taken by the Administrator arising out of, or in connection with, the administration of the Plan or any rules adopted
thereunder, shall, in each case, lie within its sole discretion, and shall be final, conclusive and binding upon the Company, the Employer, the Board, all Employees, all Beneficiaries and all other
persons and entities having an interest therein. 

        8.2    The
Administrator shall serve without compensation for services unless otherwise determined by the Board. The Employer shall pay all expenses of administering the Plan
except as otherwise determined by the Administrator. 

        8.3    The
Employer shall indemnify and hold harmless the Administrator from any and all claims, losses, damages, expenses (including counsel fees) and liability (including any
amounts paid in settlement of any claim or any other matter with the consent of the Board) arising from any act or omission of such member, except when the same is due to gross negligence or willful
misconduct. 

        8.4    Any
decisions, actions or interpretations to be made under the Plan by the CEO, the Company, the Employer, the Board, or the Administrator acting on behalf of the
Company, shall be made in its respective sole discretion, not as a fiduciary and need not be uniformly applied to similarly situated individuals and shall be final, binding and conclusive on all
persons interested in the Plan and a Participant's Rights Agreement shall constitute that Participant's acknowledgement and acceptance of this authority and discretion. 

        8.5    Nothing
contained in this Plan and no action taken pursuant hereto shall create or be construed to create a fiduciary relationship between the Company, the Employer or
the Board and any Participant or any other person. To the extent that any person acquires a right to receive payment from the Employer hereunder, such right shall be no greater than the right of any
unsecured general creditor of the Employer. 

7

 

 
 

ARTICLE 9
  
    MISCELLANEOUS    
  

        9.1    Amendment and Termination.    The Plan may be amended, suspended, discontinued or terminated at any time by the
Board; provided, however, that no such amendment, suspension, discontinuance or termination shall reduce or in any manner adversely affect the rights of any Participant with respect to benefits that
are payable or may become payable under the Plan based upon the balance of the Participant's vested benefit as of the effective date of such amendment, suspension, discontinuance or termination. 

        9.2    Claims Procedure.    

        (a)  Claim. A person who believes that he is being denied a benefit to which he is entitled under the Plan (hereinafter
referred to as a "Claimant") may file a written request for such benefit with the Administrator, setting forth the claim. 

        (b)  Claim Decision. Upon receipt of a claim, the Administrator shall advise the Claimant that a reply will be forthcoming
within ninety days and shall, in fact, deliver such reply within such period. The Administrator may, however, extend the reply period for an additional ninety days for reasonable cause. 

        If
the claim is denied in whole or in part, the Claimant shall be provided a written opinion, using language calculated to be understood by the Claimant, setting forth: 

        (i)    The
specific reason or reasons for such denial; 

        (ii)  The
specific reference to relevant provisions of the Plan on which such denial is based; 

        (iii)  A
description of any additional material or information necessary for the Claimant to perfect his claim and an explanation why such material or such information is
necessary; 

        (iv)  Appropriate
information as to the steps to be taken if the Claimant wishes to submit the claim for review; 

        (v)  The
time limits for requesting a review under subsection (c) and for review under subsection (d) hereof; and 

        (vi)  the
Participant's right to bring an action for benefits under Section 502 of ERISA. 

        (c)  Request for Review. Within sixty days after the receipt by the Claimant of the written opinion described above, the
Claimant may request in writing that the Administrator review the determination of the Administrator. The Claimant or his duly authorized representative may, but need not, review the relevant
documents and submit issues and comment in writing for consideration by the Administrator. If the Claimant does not request a review of the initial determination within such sixty-day
period, the Claimant shall be barred and estopped from challenging the determination. 

        (d)  Review of Decision. Within sixty days after the Administrator's receipt of a request for review, it will review the
initial determination. After considering all materials presented by the Claimant, the Administrator will render a written opinion, written in a manner calculated so as to be understood by the
Claimant, setting forth the specific reasons for the decision and containing specific references to the relevant provisions of the Planon which the decision is based. If special circumstances require
that the sixty day time period be extended, the Administrator will so notify the Claimant and will render the decision as soon as possible, but no later than one hundred twenty days after receipt of
the request for review. 

8

 

        9.3    Designation of Beneficiary.    Each Participant may designate a Beneficiary or Beneficiaries (which Beneficiary
may be an entity other than a natural person), and a contingent Beneficiary or contingent Beneficiaries, to receive any payments that may be made following the Participant's death. Such designation
may be changed or canceled at any time without the consent of any such Beneficiary. Any such designation, change or cancellation must be made in a form approved by the Administrator and shall not
become effective until received by the Administrator, or its designee. If no Beneficiary has been named, or the designated Beneficiary or Beneficiaries shall have predeceased the Participant, the
Beneficiary shall be the Participant' s estate. If a Participant designates more than one Beneficiary, the interests of such Beneficiaries shall be paid in equal shares, unless the Participant has
specifically designated otherwise. 

        9.4    Limitation of Participant's Right.    Nothing in this Plan shall be construed as conferring upon any
Participant any right to continue in the employment of the Employer, nor shall it interfere with the rights of the Employer to terminate the employment of any Participant and/or to take any personnel
action affecting any Participant without regard to the effect which such action may have upon such Participant as a recipient or prospective recipient of benefits under the Plan. Any amounts payable
hereunder shall not be deemed salary or other compensation to a Participant for the purposes of computing benefits to which the Participant may be entitled under any other arrangement established by
the Employer for the benefit of its employees. 

        9.5    No Limitation on Company Actions.    Nothing contained in the Plan shall be construed to prevent the Company
from taking any action that is deemed by it to be appropriate or in its best interest. No Participant, Beneficiary, or other person shall have any claim against the Company or the Employer as a result
of such action. 

        9.6    Nonalienation of Benefits.    Except as expressly provided herein, no Participant or Beneficiary shall have the
power or right to transfer (otherwise than by will or the laws of descent and distribution), alienate, or otherwise encumber the Participant's interest under the Plan. The Employer's obligations under
this Plan are not assignable or transferable except to (a) any corporation or partnership that acquires all or substantially all of the Employer's assets or (b) any corporation or
partnership into which the Employer may be merged or consolidated. The provisions of the Plan shall inure to the benefit of each Participant and the Participant's Beneficiaries, heirs, executors,
administrators or successors in interest. 

        9.7    Withholding Taxes.    The Employer may make such provisions and take such action as it may deem necessary or
appropriate for the withholding of any taxes which the Employer is required by any law or regulation of any governmental authority, whether Federal, state or local, at the minimum required level, to
withhold in connection with any benefits under the Plan, including, but not limited to, the withholding of appropriate sums from any amount otherwise payable to the Participant (or his Beneficiary).
Each Participant, however, shall be responsible for the payment of all individual tax liabilities relating to any such benefits. 

        9.8    Unfunded Status of Plan.    The Plan is intended to constitute an "unfunded" plan of deferred compensation for
Participants. Benefits payable hereunder shall be payable out of the general assets of the Employer, and no segregation of any assets whatsoever for such benefits shall be made. Notwithstanding any
segregation of assets or transfer to a grantor trust, with respect to any payments not yet made to a Participant, nothing contained herein shall give any such Participant any rights to assets that are
greater than those of a general creditor of the Employer. In the event that the Board determines that a Change of Control is imminent, the Board shall cause the Company to create and fund a grantor
trust of the Company that shall serve as the vehicle for paying all benefits due under the Plan and the number of shares of Company Stock contributed by the Company shall be that number of shares the
Board determines would then due if the Plan were to terminate and all benefits were then to be paid in a single distribution. If a Change of Control shall not have occurred within six 

9

 

months of such contribution by the Company, the Board may adopt a resolution to the effect that a Change of Control is not imminent and, in that event, up to all shares contributed to the Trust and
all earnings thereon, shall be redistributed to the Company at the direction of the Board. 

        9.9    Severability.    If any provision of this Plan is held unenforceable, the remainder of the Plan shall continue
in full force and effect without regard to such unenforceable provision and shall be applied as though the unenforceable provision were not contained in the Plan. 

        9.10    Governing Law.    The Plan shall be construed in accordance with and governed by the laws of the State of
Delaware, without reference to the principles of conflict of laws. 

        9.12    Headings.    Headings are inserted in this Plan for convenience of reference only and are to be ignored in the
construction of the provisions of the Plan. 

        9.13    Gender, Singular and Plural.    All pronouns and any variations thereof shall be deemed to refer to the
masculine, feminine, or neuter, as the identity of the person or persons may require. As the context may require, the singular may read as the plural and the plural as the singular. 

        9.14    Notice.    Any notice or filing required or permitted to be given to the Administrator under the Plan shall be
sufficient if in writing and hand delivered, or sent by registered or certified mail, to the Human Resources Department, 3930 Howard Hughes Parkway, Las Vegas, Nevada 89109, Attention: Senior Vice
President—Human Resources, or to such other entity as the Administrator may designate from time to time. Such notice shall be deemed given as to the date of delivery, or, if delivery is
made by mail, as of the date shown on the postmark on the receipt for registration or certification. 

###

10

 
 
 

SCHEDULE A    
  

	Participant
 
	 	Rights Credited
	 	Date

11

 
 
 

PARK PLACE ENTERTAINMENT CORPORATION    
  

        SUPPLEMENTAL RETENTION PLAN 

RIGHTS
AGREEMENT 

        The
undersigned Participant has been granted Rights pursuant to the Park Place Entertainment Corporation Supplemental Retention Plan (the "Plan"). Park Place Entertainment Corporation
(the "Company") has credited the Participant's Account with the amount of Rights as an inducement for the Participant to promote the best interests of the Company and its shareholders and provide the
Participant with certain additional benefits. The Company has appointed the Compensation Committee of the Board of Directors to administer the Plan. A copy of the Plan is attached. 

 
 

SUMMARY OF RIGHTS    
  

	Participant:	 	

	
Total Number of Rights:	
 	

	
Date of credit:	
 	

	
Vesting Commencement Date:	
 	

	
Vesting Dates:	
 	

	
Fair Market Value of Company Stock On Date of Credit:	
 	

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        The
parties to this Agreement, intending to be legally bound hereby agree as follows: 

1.    Grant of Rights. 

        Subject
to the terms and conditions set forth in this Agreement and in the Plan, the Company hereby grants to the Participant the number of Rights set forth above. The Rights shall vest
according to Paragraph 2 below. 

2.    Vesting of Rights.    The Rights shall vest at a rate of twenty percent (20%) of the Rights on each of the first two
anniversaries of the date as of which the Rights are initially credited to the Participant's Account, and thirty percent (30%) on each of the two succeeding anniversaries of such initial credit date,
in each case if the Participant is employed by, or providing service to, the Employer on such anniversary date. The vesting of the Rights is cumulative and all Rights shall be fully vested on the
4th
anniversary as of the date as of which the Rights are initially credited to the Participant's Account, if the Participant continues to be employed by,
or provide services to, the Employer through such date. If the vesting percentage produces fractional Rights, the number of Rights that vest on any date shall be rounded down to the nearest whole
Right. If the Participant ceases to be employed by, or provide services to the Employer, for any reason except death or Disability, any Rights which have not otherwise vested shall terminate as of the
date on which the Participant ceases to be employed by, or provide services to the Employer, determined without regard to any severance or salary continuation plan or program. If the Participant dies
or becomes Disabled while still an Employee any Rights that have not otherwise vested shall vest as of the date of the Participant's death or Disability. Upon a Change of Control, as defined in the
Plan, any Rights that have not otherwise vested as of the date of the Change of Control shall be fully vested as of such date if you are still employed by or providing services to the Employer through
such date. 

3.    Rights Subject to Plan Provisions.    This crediting of Rights is made pursuant to the Plan, the terms of which are
incorporated herein by reference, and in all respects shall be interpreted in accordance with the Plan. The grant of the Rights and payment to the Participants are subject to the provisions of the
Plan and to interpretations, regulations and determinations concerning the Plan established from time to time by the Company in accordance with the provisions of the Plan, including, but not limited
to, provisions pertaining to (i) rights and obligations with respect to withholding taxes, (ii) changes in capitalization of the Company and (iii) other requirements of applicable
law. The Administrator shall have the authority to interpret and construe the Rights pursuant to the terms of the Plan, and its decisions shall be conclusive as to any questions arising hereunder. 

4.    No Employment or Other Rights.    The grant of the Rights shall not confer upon the Participant any right to be retained by or
in the employ or service of the Company and shall not interfere in any way with the right of the Company to terminate the Participant's employment or service at any time. 

5.    No Shareholder Rights.    Neither the Participant, nor any Beneficiary(ies) in the event of the Participant's death, shall
have any of the rights and privileges of a shareholder with respect to the Rights, until certificates for shares of Common Stock have been issued upon the distribution of the Participant's Account. 

6.    Assignment and Transfers.    The rights and interests of the Participant under this Agreement may not be sold, assigned,
encumbered or otherwise transferred except, in the event of the death of the Participant, by will or by the laws of descent and distribution. In the event of any attempt by the Participant to
alienate, assign, pledge, hypothecate, or otherwise dispose of the Right or any right hereunder, except as provided for in this Agreement, or in the event of the levy or any attachment, execution or
similar process upon the rights or interests hereby conferred, the Company may terminate the Right by notice to the Participant, and the Right and all rights hereunder shall thereupon become null and
void. The rights and protections of the Company hereunder shall extend to any successors or 

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assigns of the Company and to the Company's parents, subsidiaries, and affiliates. This Agreement may be assigned by the Company without the Participant's consent. 

7.    Applicable Law.    The validity, construction, interpretation and effect of this instrument shall be governed by and construed
in accordance with the laws of the State of Delaware, without giving effect to the conflicts of laws provisions thereof. 

8.    Notice.    Any notice to the Company provided for in this instrument shall be addressed to the Company in care of the Chief
Executive Officer at 3930 Howard Hughes Parkway, Las Vegas, NV 89109, and any notice to the Participant shall be addressed to such Participant at the current address shown on the payroll of the
Company, or to such other address as the Participant may designate to the Company in writing. Any notice shall be delivered by hand, sent by telecopy or enclosed in a properly sealed envelope
addressed as stated above, registered and deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service. 

9.    Acknowledgement.    By signing this Rights Agreement, Participant acknowledges and understands that this award of Rights has
been made in conformity with and subject to the terms of the Plan and Participant hereby acknowledges Participant's agreement with the discretionary, administrative provisions and claims procedures,
as such terms, provisions and procedures are set forth in the Plan. Participant also hereby acknowledges receipt of a copy of the Plan and the summary of the Plan terms and features. 

        [Signature
Page Follows] 

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        IN
WITNESS WHEREOF, the Company has caused its duly authorized officers to execute and attest this Agreement, and the Participant has executed this Agreement, effective as of the Date of
Grant. 

	Attest:	 	PARK PLACE ENTERTAINMENT CORPORATION
	

	
 	

By:	
 	

	

 	
 	

Accepted:	
 	

	 	 	 	 	Participant

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QuickLinks

Exhibit 10.38

PARK PLACE ENTERTAINMENT CORPORATION

Supplemental Retention Plan

ARTICLE 1 PURPOSE

ARTICLE 2 DEFINITIONS

ARTICLE 3 ELIGIBILITY

ARTICLE 4 SUPPLEMENTAL BENEFIT

ARTICLE 5 VESTING

ARTICLE 6 DISTRIBUTION OF SUPPLEMENTAL BENEFIT

ARTICLE 7 FUNDING AND SHARES

ARTICLE 8 ADMINISTRATION OF THE PLAN AND DISCRETION

ARTICLE 9 MISCELLANEOUS

SCHEDULE A

PARK PLACE ENTERTAINMENT CORPORATION

SUMMARY OF RIGHTS

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