Document:

exv10w20

 

EXHIBIT
10.20

EXECUTIVE COMPENSATION ARRANGEMENTS

Each year, the Compensation Committee of the Board of Directors considers whether to alter the base
salary of our executive officers. In addition, the Compensation Committee determines bonus awards,
if any, to our executive officers for the fiscal year.

Listed below are salaries and bonuses for our executive officers that were awarded during fiscal
2005 and the salaries that have been established for fiscal 2006. Bonuses for fiscal 2006 have not
yet been determined.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Executive Officer	 	2005 Salary	 	 	2005 Bonus	 	 	2006 Salary	 
	Lawrence Bain
	 	$	175,100	 	 	$	196,000	 	 	$	325,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Chuck Sherman
	 	$	215,000	 	 	$	64,010	 	 	$	250,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Barry Sullivan
	 	$	140,000	 	 	$	70,000	 	 	$	160,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Dave Gomez
	 	$	115,000	 	 	$	13,254	 	 	$	140,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Dale Miller
	 	$	109,000	 	 	$	14,100	 	 	$	130,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Danny Lam
	 	$	150,000	 	 	$	0	 	 	$	150,000Voting Agreement

    Exhibit
      10.1

     

     

    
 

    VOTING
      AGREEMENT

     

    This
      VOTING AGREEMENT (this “Agreement”)
      is
      entered into as of April 30, 2006, by and among Kerzner International Limited,
      an international business company incorporated under the laws of the
      Commonwealth of The Bahamas (the “Company”),
      K-Two
      Holdco Limited, an international business company incorporated under the laws
      of
      the Commonwealth of The Bahamas (“Parent”)
      and
      each of the undersigned shareholders of the Company listed on the signature
      pages hereto (each, a “Shareholder”
and
      collectively, the “Shareholders”).

     

    WHEREAS,
      concurrently with the execution and delivery of this Agreement, the Company
      has
      entered into an Amended and Restated Agreement and Plan of Merger (as may be
      amended from time to time, the “Merger
      Agreement”)
      with
      Parent, and K-Two Subco Limited, an international business company incorporated
      under the laws of the Commonwealth of The Bahamas (“Merger
      Sub”),
      dated
      as of the date hereof, pursuant to which, upon the terms and subject to the
      conditions set forth therein, Merger Sub will merge with and into the Company,
      with the Company as the surviving corporation;

     

    WHEREAS,
      each Shareholder beneficially owns the number of Ordinary Shares set forth
      opposite such Shareholder’s name on Schedule I hereto (excluding Company
      Restricted Shares) (collectively, together with any Ordinary Shares subsequently
      acquired, the “Subject
      Shares”);

     

    WHEREAS,
      as a condition to the willingness of the Company to enter into the Merger
      Agreement, and as an inducement and in consideration therefor, the Company
      has
      required that the Shareholders agree, and the Shareholders have agreed, to
      enter
      into this Agreement.

     

    NOW,
      THEREFORE, in consideration of the foregoing and the mutual premises, covenants
      and agreements contained in this Agreement, the parties intending to be legally
      bound, hereby agree as follows:

     

     

    ARTICLE
      I 

    VOTING
      

     

    Section
      1.1  Agreement
      to Vote.
      (a)
      Each
      Shareholder hereby agrees that, during the Voting Period, such Shareholder
      shall
      vote or execute consents with respect to (or cause to be voted or consents
      to be
      executed with respect to) all Subject Shares beneficially owned by such
      Shareholder as of the applicable record date in favor of the approval of the
      Merger Agreement, the Merger and any other transaction contemplated by the
      Merger Agreement at any meeting (or any adjournment or postponement thereof)
      of
      the Company’s shareholders, or in any other circumstances upon which a vote,
      consent or other approval (including a written consent) with respect to the
      Merger Agreement, the Merger or any other transaction contemplated by the Merger
      Agreement is sought.

     

    (b)  Each
      Shareholder hereby agrees that, during the Voting Period, such Shareholder
      shall
      vote or execute consents with respect to (or cause to be voted or consents
      to be
      executed with respect to) all Subject Shares beneficially owned by such
      Shareholder as of the applicable record date against each of the matters set
      forth in clauses (i), (ii), (iii) or (iv) below at any meeting (or any
      adjournment or 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    postponement
      thereof) of the Company’s shareholders, or in any other circumstances upon which
      a vote, consent or other approval (including a written consent) with respect
      to
      any of the following matters is sought:

     

    
      	(i)  	
              any
                action, proposal, transaction or agreement that would reasonably
                be
                expected to result in a breach in any respect of any covenant,
                representation or warranty or any other obligation or agreement of
                the
                Company contained in the Merger Agreement or of the Shareholder contained
                in this Agreement; 

            

    

     

    
      	(ii)  	
              any
                action, proposal, transaction or agreement involving the Company
                or any of
                its Subsidiaries that would reasonably be expected to prevent, impede,
                frustrate, interfere with, delay, postpone or adversely affect the
                Merger
                and the other transactions contemplated by the Merger Agreement;
                

            

    

     

    
      	(iii)  	
              any
                Company Acquisition Proposal (whether made prior to, as of or subsequent
                to the termination of the Merger Agreement);
                and

            

    

     

    
      	(iv)  	
              any
                material change in the present capitalization of the Company or any
                amendment to the Company’s articles of association or memorandum of
                association.

            

    

     

    (c)  Any
      vote
      required to be cast or consent required to be executed pursuant to this Section
      1.1 shall be cast or executed in accordance with the applicable procedures
      relating thereto so as to ensure that it is duly counted for purposes of
      determining that a quorum is present (if applicable) and for purposes of
      recording the results of that vote or consent. Each Shareholder agrees not
      to
      enter into any agreement or commitment with any Person the effect of which
      would
      be inconsistent with or violative of the provisions and agreements contained
      in
      this Article
      I.

     

    Section
      1.2  Grant
      of Irrevocable Proxy.
      Each
      Shareholder hereby appoints Parent and any designee of Parent, and each of
      them
      individually, as such Shareholder’s proxy and attorney-in-fact, with full power
      of substitution and resubstitution, to vote or act by written consent during
      the
      Voting Period with respect the Subject Shares in accordance with
      Section 1.1. This proxy is given to secure the performance of the duties of
      each Shareholder under this Agreement. Each Shareholder shall, from time to
      time, execute and deliver, or cause to be executed and delivered, such
      additional or further consents, documents and other instruments as the Company
      may reasonably request for the purpose of effectively carrying out the
      transactions contemplated by this Agreement.

     

    Section
      1.3  Nature
      of Irrevocable Proxy.
      The
      proxy and power of attorney granted pursuant to Section 1.2 by each
      Shareholder shall be irrevocable during the term of this Agreement, shall be
      deemed to be coupled with an interest sufficient in law to support an
      irrevocable proxy and shall revoke any and all prior proxies granted by such
      Shareholder. The power of attorney granted by each Shareholder herein is a
      durable power of attorney and shall survive the dissolution, bankruptcy, death
      or incapacity of such Shareholder.
      The
      proxy and power of attorney granted hereunder shall terminate upon the
      termination of this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    Section
      1.4  Transfers.
      Each
      Shareholder agrees that, during the Voting Period, such Shareholder shall not
      except as contemplated by this Section 1.4, sell, transfer, pledge, assign
      or
      otherwise dispose of (including by gift) (collectively, “Transfer”),
      or
      enter into any Contract, option or other arrangement (including, without
      limitation, any profit sharing arrangement) with respect to the Transfer of,
      any
      Subject Shares to any Person other than pursuant to the Merger. Notwithstanding
      the foregoing, the Shareholders may Transfer any Subject Shares to any of their
      respective Affiliates (“Affiliate
      Transferee”),
      provided
      that the
      effectiveness of any such Transfers shall be conditioned on the transferee
      agreeing in writing to be bound by the provisions of this Agreement in a form
      reasonably satisfactory to the Company and Parent. 

     

    Section
      1.5  Voting
      Arrangements. Except
      for this Agreement, no Shareholder shall enter into any voting arrangement,
      whether by proxy, voting agreement or otherwise, with respect to any of such
      Shareholder’s Subject Shares and shall not commit or agree to take any of the
      foregoing actions.

     

    Section
      1.6  Representations.
      Each
      Shareholder represents and warrants to the Company that the Subject Shares
      set
      forth opposite such Shareholder’s name on Schedule I hereto represent all
      Ordinary Shares owned beneficially (determined for the purposes of this
      paragraph as set forth in Rule 13d-3 promulgated under the Exchange Act) or
      of record by such Shareholder or by a trust of which such Shareholder is a
      trustee. Each Shareholder has the sole right to vote the Subject Shares set
      forth opposite such Shareholder’s name on Schedule I hereto, and none of such
      Subject Shares is subject to any voting trust or other agreement, arrangement
      or
      restriction with respect to the voting of such Subject Shares, except as
      contemplated by this Agreement. No trust of which a Shareholder is a trustee
      requires the consent of any beneficiary to the execution and delivery of this
      Agreement or to the consummation of the transactions contemplated
      hereby.

     

    Section
      1.7  Definitions.
      For
      purposes of this Agreement, “Voting
      Period”
means
      the period from and including the date of this Agreement through and including
      the earliest to occur of (i) the obtaining of the Requisite Shareholder Vote,
      (ii) the termination of the Merger Agreement in accordance with its terms other
      than pursuant to Sections 9.1(b)(iii) (but only under circumstances in which
      the
      Termination Fee may become subsequently payable pursuant to Section 9.2(c)
      thereof), 9.1(d)(ii) or 9.1(d)(iii) thereof, and (iii) if the Merger Agreement
      is terminated pursuant to Sections 9.1(b)(iii) (under circumstances in which
      the
      Termination Fee may become subsequently payable pursuant to Section 9.2(c)
      thereof), 9.1(d)(ii) or 9.1(d)(iii) thereof, the date that is six months after
      the date of such termination; provided
      that, if
      the Merger Agreement is terminated pursuant to any of the provisions thereof
      described in this clause (iii) and an agreement with respect to a Company
      Acquisition Proposal is entered into during the Voting Period and has not been
      consummated by the time the Voting Period would otherwise expire, the Voting
      Period shall be extended until the earlier of the consummation of the
      transaction contemplated by that agreement (as it may be amended, modified
      or
      supplemented from time to time) or the termination of that agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      ARTICLE
        II

    

    MISCELLANEOUS

     

    Section
      2.1  Defined
      Terms.
      Capitalized terms that are used but not otherwise defined herein shall have
      the
      respective meanings ascribed to them in the Merger Agreement.

     

    Section
      2.2  Appraisal
      Rights.
      To the
      extent permitted by applicable law, each Shareholder hereby waives any rights
      of
      appraisal or rights to dissent from the Merger that it may have under applicable
      law.

     

    Section
      2.3  Notices.
       All
      notices, requests and other communications to any part hereunder shall be in
      writing (including facsimile or similar writing) and shall be
      given:

     

    if
      to the
      Company, to:

     

    Kerzner
      International Limited 

    730
      Fifth
      Avenue -- Fifth Floor

    New
      York,
      New York 10019

    Attention:
      Richard Levine 

    Fax:
      (212) 659-5196

    

    if
      to
      Parent, to:

     

    K-Two
      Holdco Limited 

    Coral
      Towers

    Paradise
      Island

    Attention:
      Giselle M. Pyfrom 

    Fax:
      +1
      242 363 2767 

    

    if
      to a
      Shareholder, to the address set forth for such Shareholder on Schedule I
      hereto.

     

    Section
      2.4  Governing
      Law. This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Delaware.

     

    Section
      2.5  Jurisdiction.
      Each
      party irrevocably submits to the jurisdiction of (a) any Delaware State court,
      and (b) any Federal court of the United States sitting in the State of Delaware,
      solely for the purposes of any suit, action or other proceeding between any
      of
      the parties hereto arising out of this Agreement or any transaction contemplated
      hereby. Each party agrees to commence any suit, action or proceeding relating
      hereto either in any Federal court of the United States sitting in the State
      of
      Delaware or, if such suit, action or other proceeding may not be brought in
      such
      court for reasons of subject matter jurisdiction, in any Delaware State court.
      Each party irrevocably and unconditionally waives any objection to the laying
      of
      venue of any suit, action or proceeding between any of the parties hereto
      arising out of this Agreement or any transaction contemplated hereby in (i)
      any
      Delaware State court, and (ii) any Federal court of the United States sitting
      in
      the State of Delaware, and hereby further irrevocably and unconditionally waives
      and agrees not to plead or claim in any such court that any such suit, action
      or
      proceeding brought in any such court has been brought in an inconvenient forum.
      Each party further irrevocably 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    consents
      to the service of process out of any of the aforementioned courts in any such
      suit, action or other proceeding by the mailing of copies thereof by registered
      mail to such party at its address set forth in this Agreement, such service
      of
      process to be effective upon acknowledgment of receipt of such registered mail;
      provided that nothing in this Section 2.5 shall affect the right of any party
      to
      serve legal process in any other manner permitted by law. The consent to
      jurisdiction set forth in this Section 2.5 shall not constitute a general
      consent to service of process in the State of Delaware and shall have no effect
      for any purpose except as provided in this Section 2.5. The parties agree that
      a
      final judgment in any such suit, action or proceeding shall be conclusive and
      may be enforced in other jurisdictions by suit on the judgment or in any other
      manner provided by law.  EACH
      PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER
      THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND
      THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY
      RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
      DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE
      TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND
      ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY
      HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN
      THE
      EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (II) EACH PARTY
      UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (III) EACH
      PARTY
      MAKES THIS WAIVER VOLUNTARILY AND (IV) EACH PARTY HAS BEEN INDUCED TO ENTER
      INTO
      THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
      IN
      THIS SECTION 2.5.

     

    Section
      2.6  Severability. 
      If
      any
      term or other provision of this Agreement is invalid, illegal or incapable
      of
      being enforced by virtue of any Law, or due to any public policy, all other
      conditions and provisions of this Agreement shall nevertheless remain in full
      force and effect so long as the economic or legal substance of the transactions
      contemplated hereby is not affected in any manner materially adverse to any
      party. Upon such determination that any term or other provision is invalid,
      illegal or incapable of being enforced, the parties hereto shall negotiate
      in
      good faith to modify this Agreement so as to effect the original intent of
      the
      parties as closely as possible in an acceptable manner so that the transactions
      contemplated hereby are fulfilled to the extent possible.

     

    Section
      2.7  Assignment.
      The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      the parties hereto and their respective successors and assigns, provided that
      no
      party may assign, delegate or otherwise transfer any of its rights or
      obligations under this Agreement without the consent of the other parties
      hereto.

     

    Section
      2.8  Counterparts.
      This
      Agreement may be executed in separate counterparts, each of which shall be
      deemed an original and both of which shall constitute one and the same document.
      This Agreement may be executed by facsimile signatures and in any number of
      counterparts, each of which shall be an original, with the same effect as if
      the
      signatures thereto and hereto were upon the same instrument.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    Section
      2.9  Entire
      Agreement. This
      Agreement constitutes the entire agreement between the parties hereto with
      respect to the subject matter hereof and may be amended only in a writing
      executed by the parties to be bound thereby.

     

    Section
      2.10  Amendment.This
      Agreement may not be amended except by an instrument in writing signed by the
      parties hereto (in the case of the Company, acting through the Special
      Committee, if such committee still exists, or otherwise by resolution of a
      majority of its Disinterested Directors).

     

    Section
      2.11  Termination
      of Agreement. This
      Agreement may be terminated by the mutual written consent of the parties hereto
      (in the case of the Company, acting through the Special Committee, if such
      committee still exists, or otherwise by resolution of a majority of its
      Disinterested Directors). This Agreement shall terminate automatically without
      any further action on the part of the parties hereto upon the expiration of
      the
      Voting Period. 

     

    Section
      2.12  Enforcement.
      Each
      Shareholder agrees that irreparable damage would occur, damages would be
      difficult to determine and would be an insufficient remedy and no other adequate
      remedy would exist at law or in equity, in each case in the event that any
      of
      the provisions of this Agreement were not performed in accordance with their
      specific terms or were otherwise breached (or any party hereto threatens such
      a
      breach). Accordingly,
      it is agreed that in the event of a breach or threatened breach of this
      Agreement by any Shareholder, the
      Company and Parent (and their respective successors and assigns) shall be
      entitled to an injunction or injunctions to prevent breaches of this Agreement
      and to enforce specifically the terms and provisions of this Agreement, in
      addition to any other remedy to which such party is entitled at law or in
      equity. Each Shareholder irrevocably waives any defenses based on adequacy
      of
      any other remedy, whether at law or in equity, that might be asserted as a
      bar
      to the remedy of specific performance of any of the terms or provisions hereof
      or injunctive relief in any action brought therefor by the Company or
      Parent.

     

    Section
      2.13  Effect
      on Other Agreements. The
      parties hereto acknowledge and agree that the Voting Agreement, dated as of
      March 20, 2006, among the Company, World Leisure Group Limited, Solomon Kerzner
      and Howard B. Kerzner and the provisions relating to the voting of Ordinary
      Shares in the equity rollover letter, dated as of March 20, 2006, from Istithmar
      PJSC to Parent, shall terminate concurrently with the execution and delivery
      of
      this Agreement by each of the parties hereto and shall thereafter be of no
      further force or effect and no Person shall have any rights or obligations
      with
      respect thereto.

     

    [The
      remainder of this page is blank]

     

    

     

    

     

    
      
        
          

           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

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

     

     

    
      	
              KERZNER
                INTERNATIONAL LIMITED

               

               

            
	By:  /s/
              Eric Siegel_________________     
	
              Name:
                Eric Siegel

            
	
              Title:
                Director

            

    

    
 

    
      	
              K-TWO
                HOLDCO LIMITED

               

               

            
	By:  /s/
              Howard B. Kerzner________  __    
	
              Name:
                Howard B. Kerzner

            
	
              Title:
                President

            

    

    

     

    
      	
              WORLD
                LEISURE GROUP LIMITED

               

               

            
	By:  /s/
              Solomon Kerzner_______   ____    
	
              Name:
                Solomon Kerzner

            
	Title:
              Chairman

    

    
 

    
      
        	
                SOLOMON
                  KERZNER

              
	 
	
                          
                  /s/ Solomon Kerzner_________    

              

      

    

    
 

    
      
        
          	 HOWARD B. KERZNER
	 
	          /s/ Howard
                  B.
                  Kerzner                       

        

      

      
 

    

    
      
        
          |[Voting
            Agreement Signature Page]|

        

      

      
         

        
          

        

      

      
         

      

    

    
 

    
      	
              ISTITHMAR
                PJSC

               

               

            
	By:  /s/ Peter
              Jodlowski___________    
	
              Name:
                Peter Jodlowski

            
	
              Title:
                Chief Financial Officer

            

    

    

    

     

     

     

    
      
        
          [Voting
            Agreement Signature Page]

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    Schedule
      I

     

    Ownership
      of Ordinary Shares

     

    
      	
              Name
                and Address of Shareholder

               

            	
              Number
                of Shares

               

            
	
              World
                Leisure Group Limited

              c/o
                Kerzner International Limited 

              Coral
                Towers

              Paradise
                Island

              Attention:
                Giselle M. Pyfrom 

              Fax:
                +1 242 363 2767 

               

            	
              3,795,794(1)

               

            
	
              Solomon
                Kerzner

              c/o
                Kerzner International Limited 

              Coral
                Towers

              Paradise
                Island

              Attention:
                Giselle M. Pyfrom 

              Fax:
                +1 242 363 2767 

               

            	
              3,795,794(2)

               

            
	
              Howard
                B. Kerzner

              c/o
                Kerzner International Limited 

              Coral
                Towers

              Paradise
                Island

              Attention:
                Giselle M. Pyfrom 

              Fax:
                +1 242 363 2767

               

            	
              0(3)

               

            
	
              Istithmar
                PJSC

              Emirates
                Towers, Level 4

              Sheikh
                Zayed Road - PO Box 17000

              Dubai,
                United Arab Emirates

              Attention:
                David Jackson, Chief Investment Officer

              Fax:
                +971 4 3903818

               

            	
              4,500,000

               

            

    

    _____________

     

    
      	 	
              (1)

            	
              Excludes
                116,225 Ordinary Shares over which World Leisure Group Limited has
                the
                right to vote through certain proxy arrangements with Sun International
                Limited (formerly known as Kersaf Investments
                Limited).

            

    

     

    
      	 	
              (2)

            	
              Includes
                3,795,794 Ordinary Shares beneficially owned by World Leisure Group
                Limited.

            

    

     

    
      	 	
              (3)

            	
              Excludes
                500,000 Company Restricted Shares beneficially owned by Howard B.
                Kerzner.

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