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Exhibit 10.40    
  

EMPLOYMENT AGREEMENT  

 ("Agreement")  

 —by and between—  

 WYNN RESORTS, LIMITED  

 ("Employer")  

 —and—  

 JOHN STRZEMP  

 ("Employee")  

 DATED: as of September 9th , 2002  

 EMPLOYMENT AGREEMENT  

        THIS EMPLOYMENT AGREEMENT ("Agreement") is made and entered into
as of the            day of September 2002, by and between WYNN RESORTS, LIMITED
("Employer") and John Strzemp  ("Employee").

W I T N E S S E T H:  

        WHEREAS, Employer is a corporation duly organized and existing under the laws of the State of Nevada, maintains
its principal place of business at 3145 Las Vegas Blvd. South, Las Vegas, Nevada 89109, and is engaged in the business of developing, constructing and operating a casino resorts; and, 

        WHEREAS, in furtherance of its business, Employer has need of qualified, experienced executive management; and, 

        WHEREAS, Employee is an adult individual residing at One Hughes Center Drive, #504, Las Vegas, Nevada 89109; and, 

        WHEREAS, Employee has represented and warranted to Employer that Employee possesses sufficient qualifications and expertise in order to
fulfill the terms of the employment stated in this Agreement; and, 

        WHEREAS, Employer is willing to employ Employee, and Employee is desirous of accepting employment from Employer under the terms and
pursuant to the conditions set forth herein; 

        NOW THEREFORE, for and in consideration of the foregoing recitals, and in consideration of the mutual covenants, agreements,
understandings, undertakings, representations, warranties and promises hereinafter set forth, and intending to be legally bound thereby, Employer and Employee hereby covenant and agree as follows: 

        1.    DEFINITIONS.    As used in this Agreement, the words and terms hereinafter defined have the respective meanings
ascribed to them herein, unless a different meaning clearly appears from the context: 

        (a)  "Affiliate"—means with respect to a specified Person, any other Person who or which is (i) directly or
indirectly controlling, controlled by or under common control with the specified Person, or (ii) any member, director, officer or manager of the specified Person. For purposes of this
definition, only "control", "controlling", and "controlled" mean the right to exercise, directly or indirectly, more than fifty percent (50%) of the voting power of the stockholders, members or owners
and, with respect to any individual, partnership, trust or other entity or association, the possession, directly or indirectly, of the power to direct or cause the direction of the management or
policies of the controlled entity. 

        (b)  "Cause"—means 

          (i)  the
willful destruction by Employee of the property of Employer or an Affiliate having a material value to Employer or such Affiliate: 

        (ii)  fraud,
embezzlement, theft, or comparable dishonest activity committed by Employee (excluding acts involving a de
minimis dollar value and not related to Employer or an Affiliate); 

        (iii)  Employee's
conviction of or entering a plea of guilty or nolo contendere to any crime constituting a felony or any
misdemeanor involving fraud, dishonesty or moral turpitude (excluding acts involving a de minimis dollar value and not related to Employer or an
Affiliate); 

        (iv)  Employee's
breach, neglect, refusal, or failure to materially discharge his duties (other than due to physical or mental illness) commensurate with his title and
function, or Employee's failure to comply with the lawful directions of Employer's Board of Directors, that 

 

is not cured within fifteen (15) days after Employee has received written notice thereof from the Board; 

        (v)  a
willful and knowing material misrepresentation to Employer's Board of Directors; 

        (vi)  a
willful violation of a material policy of Employer, which does or could result in material harm to Employer or to Employer's reputation; or 

      (vii)  Employee's
material violation of a statutory or common law duty of loyalty or fiduciary duty to Employer, 

provided, however, that Employee's disability due to illness or accident or any other mental or physical incapacity shall not constitute "Cause" as
defined herein. 

        (c)  "Change of Control"—means the occurrence, after the Effective Date, of any of the following events: 

          (i)  any
"Person" or "Group" (as such terms are defined in Section 13(d) of the Securities Exchange Act of 1934 (the "Exchange
Act") and the rules and regulations promulgated thereunder), excluding any Excluded Stockholder, is or becomes the "Beneficial Owner" (within the meaning of
Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of Employer, or of any entity resulting from a merger or consolidation involving Employer,
representing more than fifty percent (50%) of the combined voting power of the then outstanding securities of Employer or such entity; 

        (ii)  the
individuals who, as of the time immediately following the closing of Employer's initial public offering, are members of Employer's Board of Directors (the
"Existing Directors") cease, for any reason, to constitute more than fifty percent (50%) of the number of authorized directors of Employer as determined
in the manner prescribed in Employer's Articles of Incorporation and Bylaws: provided, however, that if the election, or nomination for election, by Employer's stockholders of any new director was
approved by a vote of at least fifty percent (50%) of the Existing Directors, such new director shall be considered an Existing Director; provided further, however, that no individual shall be
considered an Existing Director if such individual initially assumed office as a result of either an actual or threatened "Election Contest" (as described in Rule 14a-11 promulgated
under the Exchange Act) or other actual or threatened solicitation of proxies by or on behalf of anyone other than the Board (a "Proxy Contest"),
including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest; or 

        (iii)  the
consummation of (x) a merger, consolidation or reorganization to which Employer is a party, whether or not Employer is the Person surviving or resulting
therefrom, or (y) a sale, assignment, lease, conveyance or other disposition of all or substantially all of the assets of Employer, in one transaction or a series of related transactions, to
any Person other than Employer, where any such transaction or series of related transactions as is referred to in clause (x) or clause (y) above in this subparagraph (iii) (singly
or collectively, a "Transaction") does not otherwise result in a "Change in Control" pursuant to subparagraph (i) of this definition of "Change
in Control"; provided, however, that no such Transaction shall constitute a "Change in Control" under this subparagraph (iii) if the Persons who
were the stockholders of Employer immediately before the consummation of such Transaction are the
Beneficial Owners, immediately following the consummation of such Transaction, of fifty percent (50%) or more of the combined voting power of the then outstanding voting securities of the Person
surviving or resulting from any merger, consolidation or reorganization referred to in clause (x) above in this subparagraph (iii) or the Person to whom the assets of Employer are sold,
assigned, leased, conveyed or disposed of in any transaction or series of related transactions referred in clause (y) above in this subparagraph (iii), in substantially the same 

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proportions in which such Beneficial Owners held voting stock in Employer immediately before such Transaction. 

For
purposes of the foregoing definition of "Change in Control," the term "Excluded Stockholder" means Stephen A. Wynn, the spouse, siblings, children, grandchildren or great grandchildren of Stephen
A. Wynn, any trust primarily for the benefit of the foregoing persons, or any Affiliate of any of the foregoing persons. 

        (d)  "Complete Disability"—means the inability of Employee, due to illness or accident or other mental or physical
incapacity, to perform his obligations under this Agreement for a period as defined by Employer's disability plan or plans. 

        (e)  "Effective Date"—means the later of the effective date of Employer's initial public offering of shares of its
common stock or October 1, 2002, provided, however, that if the initial public offering does not occur on or before April 1, 2003, then
this agreement shall be come null and void. 

        (f)    "Good Reason"—means the occurrence, on or after the occurrence of a Change in Control, of any of the
following (except with Employee's written consent or resulting from an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by Employer or its Affiliate promptly
after receipt of notice thereof from Employee): 

          (i)  Employer
or an Affiliate reduces Employee's Base Salary (as defined in Subparagraph 8(a) below); 

        (ii)  Employer
discontinues its bonus plan in which Employee participates as in effect immediately before the Change in Control without immediately replacing such bonus plan
with a plan that is the substantial economic equivalent of such bonus plan, or amends such bonus plan so as to materially reduce Employee's potential bonus at any given level of economic performance
of Employer or its successor entity; 

        (iii)  Employer
materially reduces the aggregate benefits and perquisites to Employee from those being provided immediately before the Change in Control; 

        (iv)  Employer
or any of its Affiliates requires Employee to change the location of Employee's job or office, so that Employee will be based at a location more than 25 miles
from the location of Employee's job or office immediately before the Change in Control; 

        (v)  Employer
or any of its Affiliates reduces Employee's responsibilities or directs Employee to report to a person of lower rank or responsibilities than the person to whom
Employee reported immediately before the Change in Control; or 

        (vi)  the
successor to Employer fails or refuses expressly to assume in writing the obligations of Employer under this Agreement. 

For
purposes of this Agreement, a determination by Employee that Employee has "Good Reason" shall be final and binding on Employer and Employee absent a showing of bad faith on Employee's part. 

        (g)  "Prior Employment"—means any prior employment Employee has had with either Employer or Employer's Affiliate. 

        (h)  "Separation Payment"—means a lump sum equal to (A) Employee's Base Salary (as defined in Subparagraph
8(a) of this Agreement) for the remainder of the Term, but not less than one (1) year of Base Salary, plus (B) the bonus that was paid to Employee under Subparagraph 8(b) for the
preceding bonus period, projected over the remainder of the Term (but not less than the preceding bonus that was paid), plus (C) any accrued but unpaid vacation pay, plus (D) any 

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Gross-Up Payment required by Exhibit 1 to this Agreement, which is incorporated herein by reference. 

        2.    PRIOR EMPLOYMENT.    This Agreement supersedes and replaces any and all prior employment agreements, change in
control agreements and severance plans or agreements, whether written or oral, by and between Employee, on the one side, and Employer or any of Employer's Affiliates, on the other side, or under which
Employee is a participant, with the exception of any agreement pertaining to the issuance of restricted stock to Employee by Employer or any of its Affiliates. From and after the Effective Date,
Employee shall be the employee of Employer under the terms and pursuant to the conditions set forth in this Agreement. 

        3.    BASIC EMPLOYMENT AGREEMENT.    Subject to the terms and pursuant to the conditions hereinafter set forth,
Employer hereby employs Employee during the Term hereinafter specified to
serve in a managerial or executive capacity, under a title and with such duties not inconsistent with those set forth in Paragraph 4 of this Agreement, as the same may be modified and/or
assigned to Employee by Employer from time to time; provided, however, that no change in Employee's duties shall be permitted if it would result in a material reduction in the level of Employee's
duties as in effect prior to the change. 

        4.    DUTIES OF EMPLOYEE.    Employee shall perform such duties assigned to Employee by Employer as are generally
associated with the duties of Executive Vice President—Chief Financial Officer of Employer or such similar duties as may be assigned to Employee by Employer as Employer may determine,
including, but not limited to (a) the efficient and continuous operation of Employer and Employees Affiliates, (b) the preparation of relevant budgets and allocation or relevant funds,
(c) the selection and delegation of duties and responsibilities of subordinates, (d) the direction, review and oversight of all programs and projects under Employee's supervision, and
(e) such other and further related duties as specifically assigned by Employer to Employee. The foregoing notwithstanding, Employee shall devote such time to Employer's Affiliates as may be
required by Employer, provided such duties are not inconsistent with Employee's primary duties to Employer hereunder. 

        5.    ACCEPTANCE OF EMPLOYMENT.    Employee hereby unconditionally accepts the employment set forth hereunder, under
the terms and pursuant to the conditions set forth in this Agreement. Employee hereby covenants and agrees that, during the Term of this Agreement, Employee will devote the whole of Employee's normal
and customary working time and best efforts solely to the performance of Employee's duties under this Agreement and that, except upon Employees prior express written authorization to that effect,
Employee shall not perform any services for any casino, hotel/casino or other similar gaming or gambling operation not owned by Employer or any of Employer's Affiliate. 

        6.    TERM.    Unless sooner terminated as provided in this Agreement, the term of this Agreement (the
"Term") shall commence on the Effective Date and terminate at the end of the day on October 31, 2004. 

        7.    SPECIAL TERMINATION PROVISIONS.    Notwithstanding the provisions of Paragraph 6 of this Agreement, this
Agreement shall terminate upon the occurrence of any of the following events: 

        (a)  the
death of Employee; 

        (b)  the
giving of written notice from Employer to Employee of the termination of this Agreement upon the Complete Disability of Employee; 

        (c)  the
giving of written notice by Employer to Employee of the termination of this Agreement upon the discharge of Employee for Cause; 

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        (d)  the
giving of written notice by Employer to Employee of the termination of this Agreement following a denial or revocation of Employee's License (as defined in
Subparagraph 9(b) of this Agreement). 

        (e)  the
giving of written notice by Employer to Employee of the termination of this Agreement without Cause, provided,
however, that, within ten (10) calendar days after such notice, Employer must tender the Separation Payment to Employee; 

        (f)    the
giving of written notice by Employee to Employer upon a material breach of this Agreement by Employer, which material breach remains uncured for a period of thirty
(30) days after the giving of such notice, provided, however, that, within ten (10) days after the expiration of such cure period without
the cure having been effected, Employer must tender the Separation Payment to Employee; or 

        (g)  at
Employee's sole election in writing as provided in Paragraph 17 of this Agreement, after both a Change of Control and as a result of Good Reason,  provided, however, that, within ten (10)
 calendar days after Employer's receipt of Employee's written election, Employer must tender the
Separation Payment to Employee. 

In
the event of a termination of this Agreement pursuant to the provisions of Subparagraph 7(a), (b), (c) or (d), Employer shall not be required to make any payments to Employee other than
payment of Base Salary and vacation pay accrued but unpaid through the termination date. In the event of a termination of this Agreement pursuant to the provisions of Subparagraph (e), (f) or
(g), Employee will also be entitled to receive health benefits coverage for Employee and Employee's dependents under the same plan(s) or arrangement(s) under which Employee was covered immediately
before Employee's termination, or plan(s) established or arrangement(s) provided by Employer or any of its Affiliates thereafter. Such health benefits coverage shall be paid for by Employer to the
same extent as if Employee were still employed by Employer, and Employee will be required to make such payments as Employee would be required to make if Employee were still employed by Employer. The
health benefits provided under this Paragraph 7 shall continue until the earlier of (x) the expiration of the period for which the Separation Payment is paid, (y) the date
Employee becomes covered under any other group health plan not maintained by Employer or any of its Affiliates; provided, however, that if such other
group health plan excludes any pre-existing condition that Employee or Employee's dependents may have when coverage under such group health plan would otherwise begin, coverage under this
Paragraph 7 shall continue (but not beyond the period described in clause (x) of this sentence) with respect to such pre-existing condition until such exclusion under such
other group health plan lapses or expires. In the event Employee is required to make an election under Sections 601 through 607 of the Employee Retirement Income Security Act of 1974, as amended
(commonly known as COBRA) to qualify for the health benefits described in this Paragraph 7, the obligations of Employer and its Affiliates under this Paragraph 7 shall be conditioned
upon Employee's timely making such an
election. In the event of a termination of this Agreement pursuant to any of the provisions of this Paragraph 7, Employee shall not be entitled to any benefits pursuant to any severance plan in
effect by Employer or any of Employer's Affiliates. 

        8.    COMPENSATION TO EMPLOYEE.    For and in complete consideration of Employee's full and faithful performance of
Employee's duties under this Agreement, Employer hereby covenants and agrees to pay to Employee, and Employee hereby covenants and agrees to accept from Employer, the following items of compensation: 

        (a)    BASE SALARY.    Employer hereby covenants and agrees to pay to Employee, and Employee hereby covenants and
agrees to accept from Employer, a base salary at the rate of Four Hundred Fifty-Nine Thousand Dollars ($459,000.00) per annum during the Term, payable in such weekly, bi-weekly
or semi-monthly installments as shall be convenient to Employer (the "Base Salary"). Employee's Base Salary shall be exclusive of and in
addition to any other benefits which 

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Employer, in its sole discretion, may make available to Employee, including, but not limited to, those benefits described in Subparagraphs 8(b) through (e) of this Agreement. Employee's Base
Salary shall be subject to merit review by Employer's Board of Directors periodically, and may be increased, but not decreased, as a result of any such review. 

        (b)    BONUS COMPENSATION.    Employee also will be eligible to receive a bonus at such times and in such amounts as
Employer's Board of Directors, in its sole and exclusive discretion, may determine, until such time as the Board may adopt a performance-based bonus plan, and thereafter in accordance with such plan,
but in no event shall Employee's bonus be less than One Hundred Fifty Thousand Dollars ($150,000,00) for any calendar year ending during the Term. Nothing in this Agreement shall limit the Board's
discretion to adopt, amend or terminate any performance-based bonus plan at any time prior to a Change of Control. 

        (c)    EMPLOYEE BENEFIT PLANS.    Employer hereby covenants and agrees that it shall include Employee, if otherwise
eligible, in any profit sharing plan, executive stock option plan, pension plan, retirement plan, disability or life insurance plan, medical and/or hospitalization plan, and/or any and all other
benefit plans which may be placed in effect by Employer or any of its Affiliates for the benefit of Employer's executives during the Term. Unless prohibited by law or the terms of the applicable plan,
Employee's eligibility for medical and/or hospitalization benefits shall commence on the Effective Date of this Agreement. Nothing in this Agreement shall limit (i) Employer's ability to
exercise the discretion provided to it under any such benefit plan, or (ii) Employer's or its Affiliates' discretion to adopt, amend or terminate any such benefit plan, at any time prior to a
Change of Control. 

        (d)    EXPENSE REIMBURSEMENT.    During the Term and provided the same are authorized by Employer, Employer shall
either pay directly or reimburse Employee for Employee's reasonable expenses incurred for the benefit of Employer in accordance with Employer's general policy regarding expense reimbursement, as the
same may be amended, modified or changed from time to time. Such
reimbursable expenses shall include, but are not limited to, (i) reasonable entertainment and promotional expenses, (ii) gift and travel expenses, (iii) dues and expenses of
membership in clubs, professional societies and fraternal organizations, and (iv) the like. Prior to reimbursement, Employee shall provide Employer with sufficient detailed invoices of such
expenses as may be required by Employer's expense reimbursement policy. 

        (e)    VACATIONS AND HOLIDAYS.    Commencing as of the Effective Date of this Agreement, Employee shall be entitled to
(i) annual paid vacation leave in accordance with Employer's standard policy, but in no event less than four (4) weeks each year of the Term, to be taken at such times as selected by
Employee and approved by Employer, and (ii) paid holidays (or, at Employer's option, an equivalent number of paid days off) in accordance with Employer's standard policy. 

        (f)    WITHHOLDINGS.    All compensation to Employee identified in this Paragraph 8 shall be subject to
applicable withholdings for federal, state or local income or other taxes, Social Security Tax, Medicare Tax, State Unemployment Insurance, State Disability Insurance, voluntary charitable
contributions and the like. 

        9.    LICENSING REQUIREMENTS.    

        (a)  Employer
and Employee hereby covenant and agree that this Agreement may be subject to the approval of one or more gaming regulatory authorities (the
"Gaming Authorities") pursuant to the provisions of the applicable gaming regulatory statutes and the regulations promulgated thereunder (the
"Gaming Laws"). Employer and Employee hereby covenant and agree to use their best efforts, at Employer's sole cost and expense, to obtain any and all
approvals required by the Gaming Laws. In the event that (i) an approval of this Agreement by the Gaming Authorities is 

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required for Employee to carry out his duties and responsibilities set forth in Paragraph 4 of this Agreement, (ii) Employer and Employee have used their best efforts to obtain such
approval, and (iii) this Agreement is not so approved by the Gaming Authorities, then this Agreement shall immediately terminate and shall be null and void. 

        (b)  Employer
and Employee hereby covenant and agree that, in order for Employee to discharge the duties required under this Agreement, Employee may be required to apply for
or hold a license, registration, permit or other approval as issued by the Gaming Authorities pursuant to the terms of the applicable Gaming Laws and as otherwise required by this Agreement (the
"License"). In the event Employee fails to apply for and secure, or the Gaming Authorities refuse to issue or renew, or revoke or suspend any required
License, then Employee, at Employer's sole cost and expense, shall promptly defend such action and shall take such reasonable steps as may be required to either remove the objections, secure the
Gaming Authorities' approval, or reinstate the License, respectively. The foregoing notwithstanding, if the source of the objections or the Gaming Authorities' refusal to renew the License or their
imposition of disciplinary action against Employee is any of the events described in Subparagraph 1(b) of this Agreement, then Employer's obligations under this Paragraph 9 shall not be
operative and Employee shall promptly reimburse Employer upon demand for any expenses incurred by Employer pursuant to this Paragraph 9. 

        (c)  Employer
and Employee hereby covenant and agree that the provisions of this Paragraph 9 shall apply in the event Employee's duties require that Employee also be
licensed by such relevant governmental agencies other than the Gaming Authorities. 

        10.    CONFIDENTIALITY.    Employee hereby warrants, covenants and agrees that, without the prior express written
approval of Employer or unless required by law or court order, Employee shall hold in the strictest confidence, and shall not disclose to any person, firm, corporation or other entity, any and all of
Employer's data, including but not limited to (a) information, drawings, sketches, plans or other documents concerning Employer's business or development plans, customers or suppliers or those
of Employer's Affiliates, (b) Employer's or its Affiliates' development, design, construction or sales and marketing methods or techniques, or (c) Employer's trade secrets and other
"know-how" or information not of a public nature, regardless of how such information came to the custody of Employee. For purposes of this Agreement, such information shall include, but
not be limited to, information, including a formula, pattern, compilation, program, device, method, technique or process, that (i) derives independent economic value, present or potential, from
not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and (ii) is the subject of efforts
that are reasonable under the circumstances to maintain its secrecy. The warranty, covenant and agreement set forth in this Paragraph 10 shall not expire, shall survive this Agreement and shall
be binding upon Employee without regard to the passage of time or other events. 

        11.    RESTRICTIVE COVENANT/NO SOLICITATION.    

        (a)  Employee
hereby covenants and agrees that, during the Term, or for such period as Employee receives cash compensation under this Agreement, whichever period is shorter,
Employee shall not directly or indirectly, either as a principal, agent, employee, employer, consultant, partner, member or manager of a limited liability company, shareholder of a closely held
corporation, or shareholder in excess of two (2%) of a publicly traded corporation, corporate officer or director, or in any other individual or representative capacity, engage or otherwise
participate in any manner or fashion in any gaming business that is in competition in any manner whatsoever with the principal business activity of Employer or Employer's Affiliates, in or about any
market in which Employer or Employer's Affiliates have or have publicly announced a plan for gaming operations. Employee hereby further covenants and agrees that the restrictive covenant contained in
this Paragraph 11 is reasonable as to duration, terms and geographical area and that 

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the same protects the legitimate interests of Employer, imposes no undue hardship on Employee, and is not injurious to the public. 

        (b)  Employee
hereby further covenants and agrees that, for the period described in Subparagraph 11(a), Employee shall not directly or indirectly solicit or attempt to
solicit for employment any management level employee of Employer or Employer's Affiliates with or on behalf of any business that is in competition in any manner whatsoever with the principal business
activity of Employer or Employees Affiliates, in or about any market in which Employer or Employer's Affiliates have or plan gaming or hotel operations. 

        12.    BEST EVIDENCE.    This Agreement shall be executed in original and "Xerox" or photostatic copies and each copy
bearing original signatures in ink shall be deemed an original. 

        13.    SUCCESSION.    This Agreement shall be binding upon and inure to the benefit of Employer and Employee and their
respective successors and assigns. 

        14.    ASSIGNMENT.    Employee shall not assign this Agreement or delegate his duties hereunder without the express
written prior consent of Employer thereto. Any purported assignment by Employee in violation of this Paragraph 14 shall be null and void and of no force or effect. Employer shall have the right
to assign this Agreement to any of its Affiliates, provided that this agreement shall be reassigned to Employer upon a sale of that Affiliate or substantially all of that Affiliate's assets to an
unaffiliated third party, provided further that, in any event, Employer shall have the right to assign this Agreement to any successor of Employer that is not an affiliate of Employer. 

        15.    AMENDMENT OR MODIFICATION.    This Agreement may not be amended, modified, changed or altered except by a
writing signed by both Employer and Employee. 

        16.    GOVERNING LAW.    This Agreement shall be governed by and construed in accordance with the laws of the
jurisdiction where Employer's principal place of business is located in effect on the Effective Date of this Agreement. 

        17.    NOTICES.    Any and all notices required under this Agreement shall be in writing and shall be either
hand-delivered or mailed, certified mail, return receipt requested, addressed to: 

	To Employer:	 	Wynn Resorts, Limited

3145 Las Vegas Boulevard South

Las Vegas, Nevada 89109
	

With a copy that shall not be notice to:	
 	

Wynn Resorts, Limited

3145 Las Vegas Boulevard South

Las Vegas, Nevada 89109

Attn: Legal Department
	

To Employee:	
 	

John Strzemp

One Hughes Center Drive

#504

Las Vegas, NV 89109

All
notices hand-delivered shall be deemed delivered as of the date actually delivered. All notices mailed shall be deemed delivered as of three (3) business days after the date
postmarked. Any changes in any of the addresses listed herein shall be made by notice as provided in this Paragraph 17. 

        18.    INTERPRETATION.    The preamble recitals to this Agreement are incorporated into and made a part of this
Agreement; titles of paragraphs are for convenience only and are not to be considered a part of this Agreement. 

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        19.    SEVERABILITY.    In the event any one or more provisions of this Agreement is declared judicially void or
otherwise unenforceable, the remainder of this Agreement shall survive and such provision(s) shall be deemed modified or amended so as to fulfill the intent of the parties hereto. 

        20.    DISPUTE RESOLUTION.    Except for equitable actions seeking to enforce the covenants in Paragraph 10 or
11 of this Agreement, jurisdiction and venue for which is hereby granted to the court of general trial jurisdiction in the state and county where Employer's or its applicable Affiliate's principal
place of business is located, any and all claims, disputes, or controversies arising between the parties regarding any of the terms of this Agreement or the breach thereof, shall, on the written
demand of either of the parties, be submitted to and be determined by final and binding arbitration held in the local jurisdiction where Employer's or Employer's Affiliate's principal place of
business is located, in
accordance with Employer's or Employer's Affiliate's arbitration policy governing employment disputes. This agreement to arbitrate shall be specifically enforceable in any court of competent
jurisdiction. 

        21.    WAIVER.    None of the terms of this Agreement, including this Paragraph 21, or any term, right or
remedy hereunder shall be deemed waived unless such waiver is in writing and signed by the party to be charged therewith and in no event by reason of any failure to assert or delay in asserting any
such term, right or remedy or similar term, right or remedy hereunder. 

        22.    PAROL.    This Agreement constitutes the entire agreement between Employer and Employee with respect to the
subject matter hereto and, except for any agreement pertaining to the issuance of restricted stock to Employee by Employer or any of its Affiliates, this Agreement supersedes any prior understandings,
agreements, undertakings or severance policies or plans by and between Employer or Employer's Affiliates, on the one side, and Employee, on the other side, with respect to the subject matter hereof or
Employee's employment with Employer or its Affiliates. 

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        IN WITNESS WHEREOF AND INTENDING TO BE LEGALLY BOUND THEREBY, the parties hereto have executed and delivered this Agreement as of the year
and date first above written. 

	
WYNN RESORTS, LIMITED	
 	
EMPLOYEE
	

By:	

/s/  MARC D. SCHORR      
 Marc D. Schorr
 Chief Operating Officer	

 	

/s/ JOHN STRZEMP    9/9/02
 John Strzemp

10

 
EXHIBIT 1  

 Indemnification and Gross-Up for Excise Taxes  

        (a)  Employer
shall indemnify and hold Employee harmless from and against any and all liabilities, costs and expenses (including, without limitation, attorney's fees and
costs) which Employee may incur as a result of the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the
"Code") or any similar provision of state or local income tax law (the "Excise Tax"), to the end that
Employee shall be placed in the same tax position with respect to the Severance Payment under Employee's Employment Agreement and all other payments from Employer to Employee in the nature of
compensation as Employee would have been in if the Excise Tax had never been enacted. In furtherance of such indemnification, Employer shall pay to Employee a payment (the
"Gross-Up Payment") in an amount such that, after payment by Employee of all taxes, including income taxes and the Excise Tax imposed on the
Gross-Up Payment and any interest or penalties (other than interest and penalties imposed by reason of Employee's failure to file timely tax returns or to pay taxes shown due on such
returns and any tax liability, including interest and penalties, unrelated to the Excise Tax or the Gross-Up Amount), Employee shall be placed in the same tax position with respect to the
Severance Payment under this Plan and all other payments from Employer to Employee in the nature of compensation as Employee would have been in if the Excise Tax had never been enacted. When Employer
pays Employee's Severance Payment, it shall also pay to Employee a Gross-Up Payment for the Severance Payment and any other payments in the nature of compensation that Employer determines
are "excess parachute payments" under Section 280G(b)(1) of the Code ("Excess Parachute Payments"). If, through a determination of the Internal
Revenue Service or any state or local taxing authority (a "Taxing Authority"), or a judgment of any court, Employee becomes liable for an amount of
Excise Tax not covered by the Gross-Up Payment payable pursuant to the preceding sentence, Employer shall pay Employee an additional Gross-Up Payment to make Employee whole for
such additional Excise Tax; provided, however, that, pursuant to Section 2.3(c), Employer shall have the right to require Employee to protest,
contest, or appeal any such determination or judgment. For purposes of this Section 2.3, any amount that Employer is required to withhold under Sections 3402 or 4999 of the Code or under any
other provision of law shall be deemed to have been paid to Employee. 

        (b)  Upon
payment to Employee of a Gross-Up Payment, Employer shall provide Employee with a written statement showing Employer's computation of such
Gross-Up Payment and the Excess Parachute Payments and Excise Tax to which it relates, and setting forth Employer's determination of the amount of gross income Employee is required to
recognize as a result of such payments and Employee's liability for the Excise Tax. Employee shall cause his or her federal, state, and local income tax returns for the period in which Employee
receive such Gross-Up Payment to be prepared and filed in accordance with such statement, and, upon such filing, Employee shall certify in writing to Employer that such returns have been
so prepared and filed. Notwithstanding the provisions of Section 2.3(a), Employer shall not be obligated to indemnify Employee from and against any tax liability, cost or expense (including,
without limitation, any liability for the Excise Tax or attorney's fees or costs) to the extent such tax liability, cost or expense is attributable to your failure to comply with the provisions of
this Section 2.3(b). 

        (c)  If
any controversy arises between Employee and a Taxing Authority with respect to the treatment on any return of the Gross-Up Amount, or of any payment
Employee receives from Employer as an Excess Parachute Payment, or with respect to any return which a Taxing Authority asserts should show an Excess Parachute Payment, including, without limitation,
any audit, protest to an appeals authority of a Taxing Authority or litigation (a "Controversy"), Employer shall have the right to participate with
Employee in the handling of such Controversy. Employer shall have the right, solely with respect to a Controversy, to direct Employee to protest or contest any 

11

 

proposed adjustment or deficiency, initiate an appeals procedure within any Taxing Authority, commence any judicial proceeding, make any settlement agreement, or file a claim for refund of
tax, and Employee shall not take any of such steps without the prior written approval of Employer, which Employer shall not unreasonably withhold. If Employer so elects, Employee shall be represented
in any Controversy by attorneys, accountants, and other advisors selected by Employer, and Employer shall pay the fees, costs and expenses of such attorneys, accountants, or advisors, and any tax
liability Employee may incur as a result of such payment. Employee shall promptly notify Employer of any communication with a Taxing Authority, and Employee shall promptly furnish to Employer copies
of any written correspondence, notices, or documents received from a Taxing Authority relating to a Controversy. Employee shall cooperate fully with Employer in the handling of any Controversy by
furnishing Employer any information or documentation relating to or bearing upon the Controversy; provided, however, that Employee shall not be
obligated to furnish to Employer copies of any portion of his or her tax returns which do not bear upon, and are not affected by, the Controversy. 

        (d)  Employee
shall pay over to Employer, within ten (10) days after receipt thereof, any refund Employee receive from any Taxing Authority of all or any portion of
the Gross-Up Payment or the Excise Tax, together with any interest Employee receive from such Taxing Authority on such refund. For purposes of this Section 2.3(d), a reduction in
Employee's tax liability attributable to the previous payment of the Gross-Up Amount or the Excise Tax shall be deemed to be a refund. If Employee would have received a refund of all or
any portion of the Gross-Up Payment or the Excise Tax, except that a Taxing Authority offset the amount of such refund against other tax liabilities, interest, or penalties, Employee shall
pay the amount of such offset over to Employer, together with the amount of interest Employee would have received from the Taxing Authority if such offset had been an actual refund, within ten
(10) days after receipt of notice from the Taxing Authority of such offset. 

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EXHIBIT 4.3    
  

 
 

2001 STOCK OPTION PLAN
  OF
  2C COMPUTING, INC.    
  

        Section 1.    Establishment, Purpose and Effective Date of Plan    

        1.1    Establishment.    2C Computing, Inc., an Alabama corporation, hereby establishes a stock option plan for
key Employees (as defined herein), which shall be known as the "2001 STOCK OPTION PLAN OF 2C COMPUTING, INC." (the "Plan"). It is intended that certain of the Options issued pursuant to the
Plan may constitute incentive stock options ("ISOs") within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"). The Plan also shall provide for the
issuance of options which are not qualified under Section 422 of the Code, the latter of which are referred to herein as non-qualified stock options ("NQSOs"). 

        1.2    Purpose.    The purpose of the Plan is to advance the interests of the Corporation, by encouraging and
providing for the acquisition of an equity interest in the Corporation by key Employees through the grant of ISOs and NQSOs. The Plan will enable the Corporation to attract and retain the services of
key Employees upon whose judgment, interest, and special effort the successful conduct of its business operations is largely dependent. 

        1.3    Effective Date.    The Plan shall become effective as of May 15, 2001, subject to ratification by the
shareholders of the Corporation within twelve (12) months following such date. 

        Section 2.    Definitions    

        2.1    Definitions.    

        (a)  "Board"
means the Board of Directors of the Corporation. 

        (b)  "Corporation"
means 2C Computing, Inc., an Alabama corporation, as well as any subsidiary of which the Corporation owns 50% or more of the outstanding voting
stock or other equity interest. 

        (c)  "Disability"
means the permanent and total inability, by reason of physical or mental infirmity, or both, of a Participant to perform the work customarily assigned to
him by the Corporation. The determination of the existence or nonexistence of Disability shall be made by the Board pursuant to a medical examination by a medical doctor selected or approved by the
Board. 

        (d)  "Employee"
means those employees, including officers and directors (including any non-employee director), consultants and advisors of the Corporation who, in
the judgment of the Board, directly or through the Compensation Committee of the Board, are considered (i) to be unusually valuable, (ii) to possess superior training, experience or
ability, and/or (iii) to be actively interested in the development and financial success of the Corporation. 

        (e)  "Option"
means the right to purchase Stock at a stated price for a specified period of time. For purposes of the Plan, an Option may be designated as either
(i) an ISO or (ii) an NQSO at the time of grant. 

        (f)    "Option
Price" means the exercise price per share of Stock as determined by the Board at the time an Option is granted, subject to the requirements of  Section 7.3 of the Plan. 

        (f)    "Participant"
means an Employee designated by the Board to participate in the Plan. 

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        (g)  "Retirement"
(including "Early Retirement" and "Normal Retirement") means termination of employment under the terms of the Corporation's then current retirement program. 

        (h)  "Stock"
means the Common Stock of the Corporation, having a par value of one cent ($0.01) per share, or as it may then be constituted. 

        (i)    "Ten
Percent Shareholder" means any individual who, immediately prior to the time an Option is granted pursuant to the Plan, directly or indirectly owns Stock possessing
more than ten percent (10%) of the total combined voting power of all classes of stock of the Corporation, or of its parent or subsidiary corporation. For purposes of the Plan, an individual shall be
treated as owning indirectly any Stock which is owned by such individual's brothers and sisters (whether by the whole or half blood), spouse, ancestors and lineal descendants, and stock owned directly
or indirectly, by or for a corporation, partnership, trust or estate shall be considered as being owned proportionately by or for its shareholders, partners, or beneficiaries. 

        Section 3.    Eligibility and Participation    

        3.1    Eligibility and Participation.    Participants in the Plan shall be selected by the Board from among those
Employees who, in the opinion of the Board, are in a position to contribute materially to the Corporation's continued growth and development and to its long-term financial success. The
Compensation Committee of the Board shall review and approve or ratify participation in the Plan and recommend such participation to the Board; however, participation shall be subject to approval by
the Board. 

        Section 4.    Administration    

        4.1    Administration.    The Board shall be responsible for the administration of the Plan. The Board, by majority
action thereof, is authorized to interpret the Plan, to prescribe, amend, and rescind rules and regulations relating to the Plan, to provide for conditions and assurances deemed necessary or advisable
to protect the interests of the Corporation, and to make all other determinations necessary or advisable for the administration of the Plan, but only to the extent not contrary to the express
provisions of the Plan. Determinations, interpretations, or other actions made or taken by the Board pursuant to the provisions of the Plan shall be final and binding and conclusive for all purposes
and upon all persons whomsoever. The Board shall have the right to request the Compensation Committee of the Board to administer the Plan, subject in all events to Board approval. 

        Section 5.    Stock Subject to Plan    

        5.1    Number.    The total number of shares of Stock subject to issuance under the Plan may not exceed One Thousand
Five Hundred (1,500), subject to adjustment as provided by Section 5.3 hereof. The shares to be delivered under the Plan may consist, in whole or
in part, of authorized but unissued Stock or treasury Stock not reserved for any other purpose. 

        5.2    Unused Stock.    In the event any shares of Stock are subject to an Option which, for any reason, expires,
terminates or, with the consent of the Participant, is canceled as to such shares, such Stock may again be made subject to an Option pursuant to the Plan. 

        5.3    Adjustment in Capitalization.    In the event of any change in the outstanding shares of Stock that occurs
after ratification of the Plan by the shareholders of the Corporation by reason of a stock dividend, stock split, recapitalization or other similar corporate change in which the number of shares of
Stock outstanding is increased, decreased or then changed without the receipt by the Corporation of additional consideration, the aggregate number of shares of Stock subject to each outstanding
Option, and the Option Price, and the aggregate number of shares of Stock reserved for issuance under the Plan shall be appropriately adjusted by the Board, whose 

2

 

determination shall be conclusive; provided, however, that fractional shares shall be rounded to the nearest whole share. 

        Section 6.    Duration of Plan    

        6.1    Duration of Plan.    The Plan shall remain in effect, subject to the Board's right to earlier terminate the
Plan pursuant to Section 9.1 hereof, until all Stock subject to it shall have been purchased or acquired pursuant to the provisions hereof.
Notwithstanding the foregoing, no Option may be granted under the Plan on or after the tenth (10th) anniversary of the Plan's effective date. 

        Section 7.    Terms of Options    

        7.1    Grant of Options.    Subject to the provisions of Sections 3.1 and
5.1 hereof, Options may be granted to Employees at any time and from time to time as shall be determined by the Board. The Board also shall determine and state at the time of
grant whether an Option is to be designated as an ISO or an NQSO. With respect to Options granted under the Plan, if the fair market value (determined at the date of grant) of Stock with respect to
which ISOs may become exercisable for the first time in any calendar year by any Participant is greater than $100,000, then any such Options in excess of such amount shall constitute NQSOs and shall
not be ISOs. 

        7.2    Option Agreement.    As determined by the Board on the date of grant, each Option shall be evidenced by a
written Option agreement that shall specify the type of Option granted, the Option Price, the duration of the Option, the number of shares of Stock to which the Option pertains, and any other terms,
limitations or restrictions which may be made applicable to such Options in the Board's discretion. 

        7.3    Option Price.    No ISO granted pursuant to the Plan shall have an Option Price that is less than the fair
market value of the Stock on the date such Option is granted; furthermore, no ISO which is
granted to a Ten Percent Shareholder shall have an Option Price that is less than 110% of the fair market value of the Stock on the date such ISO is granted. At the time any ISO is granted under the
Plan the Board shall make a good faith effort to determine the fair market value of the Stock subject to such Option, using any methods which the Board deems appropriate, and such determination of
fair market value shall be binding upon all parties for all purposes under the Plan. 

        7.4    Duration of Options.    Each Option shall expire at such time as the Board shall determine at the time it is
granted; provided, however, that no Option shall be exercisable after the tenth anniversary date of its grant. Furthermore, no ISO which is granted to a
Ten Percent Shareholder shall be exercisable after the fifth anniversary date of its grant. 

        7.5    Exercise of Options.    

        (a)  ISOs
granted under the Plan shall be exercisable as follows: 

          (i)  twenty-five
percent (25%) of the ISOs shall become exercisable on the first to occur of either the first anniversary of the date on which the ISOs are
granted to the Employee or the first anniversary of the Employee's employment by the Corporation (the "Anniversary Date"); 

        (ii)  twenty-five
percent (25%) of the ISOs shall become exercisable on the first anniversary of the Anniversary Date; 

        (iii)  twenty-five
percent (25%) of the ISOs shall become exercisable on the second anniversary of the Anniversary Date; and 

        (iv)  twenty-five
percent (25%) of the ISOs shall become exercisable on the third anniversary of the Anniversary Date. 

3

 

        In
addition, ISOs granted under the Plan shall be exercisable at such times as are set forth in Section 10 hereof. 

        (b)  NQSOs
granted under the Plan shall be exercisable at such times and be subject to such restrictions and conditions as the Board shall in each instance approve, which
need not be the same for all Participants and at such times as are set forth in Section 10 hereof. 

        7.6    Restrictions on Stock Transferability.    The Board shall impose such restrictions on any shares of Stock
acquired pursuant to the exercise of an Option under the Plan as it may deem advisable, including, without limitation, restrictions under applicable federal securities law and under any blue sky or
state securities laws applicable to such shares. 

        7.7    Payment.    The Option Price upon exercise of any Option shall be payable to the Corporation in United States
Dollars, in full in cash or its equivalent. The proceeds from such payment shall be added to the general funds of the Corporation and shall be used for general corporate purposes. 

        7.8    Termination of Employment Due to Death or Disability.    In the event the employment of a Participant is
terminated by reason of death or Disability, the rights under any then outstanding Option granted pursuant to the Plan (including, without limitation, any Options that become vested pursuant to  Section 10.1 hereof) shall terminate upon the expiration date of the Option or one year after such date of termination of employment, whichever
first occurs. 

        7.9    Termination of Employment Other Than for Death or Disability.    If the employment of the Participant shall
terminate for any reason other than death or Disability, the rights under any then outstanding Option granted pursuant to the Plan (including, without limitation, any Options that become vested
pursuant to Section 10.1 hereof) shall terminate upon the expiration date of the Option or three months after such date of termination of
employment, whichever first occurs. 

        7.10    Non-Transferability of Options.    No Option granted under the Plan may be sold, transferred,
pledged, or assigned, or otherwise alienated or hypothecated, except by will or by the laws of descent and distribution. Further, during the Participant's lifetime, Options granted to such Participant
under the Plan are exercisable solely by such Participant. 

        Section 8.    Rights of Employees.    

        8.1    Employment.    Nothing in the Plan shall interfere with or limit in any way the right of the Corporation to
terminate any Employee's employment at any time, nor confer upon any Employee any right to continue in the employ of the Corporation. 

        Section 9.    Amendment, Modification, and Termination of Plan    

        9.1    Amendment, Modification, and Termination of Plan.    The Board may at any time terminate, and from time to time
may amend or modify the Plan; provided, however, that no such action of the Board, without approval of the shareholders, may: 

        (i)    increase
the total amount of Stock which may be issued under the Plan, except as provided in Section 5.3 hereof; 

        (ii)  change
the class of Employees eligible to receive Options; 

        (iii)  change
the provisions of the Plan regarding the Option Price except as permitted by Section 5.3 hereof; 

        (iv)  materially
increase the cost of the Plan; 

        (v)  extend
the period during which Options may be granted; or 

        (vi)  extend
the maximum period after the date of grant during which Options may be exercised. 

4

 

No
amendment, modification, or termination of the Plan shall in any manner adversely affect any Option theretofore granted under the Plan, without the consent of the Participant. 

        Section 10.    Merger, Consolidation or Acquisition of Control    

        10.1    Vesting of Options in Certain Events.    

        (a)  In
the event of any merger or consolidation of the Corporation in which the Corporation is not the surviving entity, all of the NQSO's which have been granted pursuant
to the Plan, but are then unvested, shall become vested on the thirtieth day immediately preceding the effective date of such merger or consolidation and fifty percent (50%) of all ISO's which have
been granted pursuant to the Plan, but are then unvested, shall become vested on the thirtieth day immediately preceding the effective date of such merger or consolidation and the remaining fifty
percent (50%) (the "Unvested
Options") shall become exercisable as follows: (i) fifty percent (50%) of the Unvested Options shall become exercisable on the first anniversary date of the effective date of such merger or
consolidation, and (ii) the remaining Unvested Options shall become exercisable on the second anniversary date of the effective date of such merger or consolidation;  provided, however, that if the
Participant's employment by the surviving entity is terminated for any reason other than "for cause," all of the Unvested
Options which are then not exercisable shall become exercisable as of the date of such termination of employment. (For the purposes of this  Section 10.1, the term "for cause" shall mean a written
determination by the surviving entity, after a reasonable investigation of the
circumstances, that the Participant has engaged in any of the following conduct: violation of the written policies of the surviving entity after a written notice of such conduct and a period of at
least thirty (30) days to correct such conduct, misappropriation of the surviving entity's property, self-dealing, or conviction of a felony, and the term "self-dealing"
shall mean engaging in any transaction which is intended to result in the Participant receiving any pecuniary advantage in connection with any transaction entered into or foregone on behalf of the
surviving entity, except as may be expressly permitted by the surviving entity's written policies or which has been fully disclosed to, and approved in writing by, the chief executive officer or the
governing board of the surviving entity) 

        (b)  In
the event of any dissolution or a liquidation of the Corporation or a sale of substantially all the property of the Corporation, all of the NQSO's which have been
granted pursuant to the Plan, but are then not exercisable, and all of the ISO's which have been granted pursuant to the Plan, but are then not exercisable, shall become exercisable on the thirtieth
day immediately preceding the effective date of such dissolution or liquidation of the Corporation or the sale of substantially all the property of the Corporation. 

        10.2    Treatment of Options.    (a) Subject in all events to  Section 10.1 hereof, in the event of a dissolution or a
liquidation of the Corporation, a merger and consolidation in which the Corporation is
not the surviving corporation, or a sale of substantially all the property of the Corporation to another corporation or person, no Option outstanding hereunder shall terminate and, in the event of a
merger or consolidation in which the Corporation is not the surviving entity, provision shall be made in writing in connection with such transaction for the substitution for the Options theretofore
granted under the Plan for options covering the stock of a successor employer entity, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of shares and prices, in
which event every Option outstanding hereunder shall continue in the manner and under the terms so provided; provided, however, that in the event of any
such substitution of the Options under the Plan, for a period of thirty (30) days prior to the effective date of any such transaction described above in this  Section 10.2(a) (the "Pre-Closing
Period"), and subject to the other provisions of the Plan, the Participant shall have the right to
exercise any exercisable Options; and, in addition, in the event of an acquisition of stock representing more than eighty percent (80%) of the voting 

5

 

power of the stock of the Corporation then outstanding by another entity or person, the Options outstanding hereunder shall not lapse or terminate, but for a period of thirty (30) days
following the effective date of such acquisition, and subject to the other provisions of the Plan, each Participant shall have the right to exercise any otherwise exercisable Options; and  provided, further, that: 

        (i)    If
the transaction described in this Section 10.2(a) involves a merger or consolidation of the Corporation in
which cash or other currency denominated consideration or equity securities of the
surviving corporation are to be issued to some or all of the shareholders of the Corporation, and if ISOs granted to any Participant under the Plan become exercisable for the first time, by virtue of
the acceleration provisions of Section 10.1 with respect to Stock having a fair market value (determined at the date of grant) in excess of the
Excess Amount then, at the election of any Participant holding any such ISOs, which shall be exercised, prior to the expiration of the Pre-Closing Period, by a notice in writing to the
Corporation, either (A) the surviving corporation shall substitute for all ISOs comprising the Excess Amount, or such portion thereof as the Participant may elect, ISOs relating to equity
securities of the surviving corporation, in like kind as those issuable in such merger or consolidation, which substituted options shall cover such number of shares of such equity securities of the
surviving corporation as shall equal the number of shares of Stock comprising the Excess Amount, or such portion thereof as the Participant has elected to be subject to the provisions of this  Section 10.2(a)(ii)(A)
, multiplied by the ratio at which equity securities of the surviving corporation are to be exchanged in such merger or
consolidation for shares of Stock, shall have an option price equal to the per share Option Price of the Stock with respect to which the substituted options relate and shall be exercisable at such
times as were the ISOs comprising the Excess Amount or the portion thereof elected by the Participant to be subject to the provisions of this  Section 10.2(a)(ii), or (B) all ISOs constituting
the Excess Amount, or such portion thereof as the Participant may elect, shall
immediately be canceled and the Corporation shall, prior to the expiration of the Pre-Closing Period, issue new Options pursuant to the Plan which shall be NQSOs, which shall have the same
provisions on the date of grant as the canceled Options, and which shall be accelerated immediately pursuant to the acceleration provisions of  Section 10.1.

        (ii)  If
the transaction described above in this Section 10.2(a) involves a merger or consolidation of the Corporation
in which cash or other currency denominated consideration or equity securities of the surviving corporation are to be issued to some or all of the shareholders of the Corporation, then, at the
election of any Participant, which shall be exercised, prior to the expiration of the Pre-Closing Period, by a notice in writing to the Corporation, either (A) all NQSOs granted to
any Participant under the Plan, or such portion thereof as the Participant may elect, shall, within such Pre-Closing Period, become exercisable, or (B) the surviving corporation
shall substitute for all NQSOs granted under the Plan, or such portion thereof as the Participant may elect, NQSOs relating to equity securities of the surviving corporation, in like kind as those
issuable in such merger or consolidation, which substituted options shall cover such number of shares of such equity securities of the surviving corporation as shall equal the number of shares of
Stock subject to the Options being substituted, multiplied by the ratio at which equity securities of the surviving corporation are to be exchanged in such merger or consolidation for shares of Stock,
shall have an option price equal to the per share Option Price of the Stock with respect to which the substituted options relate and shall be exercisable at such times as were the NQSOs for which the
substituted options are being issued (including, without imitation, the acceleration provisions of Section 10.1); 

6

 

provided, however, that notwithstanding the foregoing provisions, any substituted option issued hereunder to replace any ISO shall comply, in any event,
with the provisions of Section 424 of the Code. 

        (b)  Subject
in all events to Section 10.1 hereof, in the event of a merger of one or more corporations into the
Corporation, or a consolidation of the Corporation and one or more corporations in which the Corporation shall be the surviving corporation, a Participant shall, if the Option is then outstanding, at
no additional cost, be entitled upon exercise of the Option to receive (subject to any required action by shareholders) in lieu of the number of shares as to which the Option shall be exercisable at
the time of such exercise, the number and class of shares of stock or other securities to which it would have been entitled pursuant to the terms of the agreement of merger or consolidation if,
immediately prior to such merger or consolidation, the Participant had been the holder of record of a number of shares of Stock equal to the number of shares as to which the Option shall be so
exercised. Notwithstanding the foregoing, if the shareholders of the Corporation are required to surrender their shares of stock in the Corporation pursuant to the terms of any such consolidation or
merger and receive any portion of the purchase price in cash or other property (excluding stock in the acquiring corporation) for their surrendered shares, the Board may cancel any unexercised options
as of the effective date of any such consolidation or merger, so long as and upon the condition that (i) such merger consolidation or sale results in a change of control of the business and
operations of the Corporation rather than a mere change of form or domicile of the Corporation, (ii) written notice of any such cancellation is given to the Participant not later than thirty
(30) days prior to the effective date of such consolidation or merger, and (iii) the Participant shall have the right to exercise such Option in full during a period of thirty
(30)-days immediately preceding the effective date of such consolidation or merger. The surviving corporation shall be entitled to assume the Plan in connection with such consolidation or
merger. 

        (c)  Subject
in all events to Section 10.1 hereof, in the event that the Corporation is merged into or consolidated
with another corporation under circumstances where the Corporation is not the surviving corporation, or if the Corporation sells or otherwise disposes of all or substantially all its property or
assets to another corporation or other entity while the Option remains outstanding, after the effective date of such merger, consolidation or sale, as the case may be, the Participant shall be
entitled, upon exercise of the option, to receive, in lieu of shares of Stock, the number and class of shares of such stock or other securities as the holders of shares of Stock received pursuant to
the terms of the merger, consolidation or sale and to which the Participant would have been entitled if, immediately prior to such merger, consolidation or sale the Participant had been the holder of
record of a number of shares of Stock equal to the number of shares as to which the Option shall be so exercised; and the Board may cancel the Option, so long as and upon the condition that
(i) such merger consolidation or sale results in a change of control of the business and operations of the Corporation rather than a mere change of form or domicile of the Corporation,
(ii) written notice of any such cancellation is given to the Participant not later than thirty (30) days prior to the effective date of such consolidation or merger, and (iii) the
Participant shall have the right to exercise such Option in full during a period of thirty (30)-days immediately preceding the effective date of such consolidation or merger. 

        (d)  Except
as hereinbefore expressly provided, the issue by the Corporation of shares of stock of any class, or securities convertible into shares of stock of any class, for
cash or property, or for labor or services either upon direct sale or upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares or obligations of the Corporation
convertible into such shares or other securities, shall not affect, and no adjustment by reason 

7

 

thereof shall be made with respect to, the Option Price or the number of shares of Stock then subject to the option. 

        (e)  In
the event of a change in the Stock of the Corporation as presently constituted, which is limited to a change of all of its authorized shares with a par value into the
same number of shares with a different par value or without par value, the shares resulting from any such change shall be deemed to be the Stock within the meaning of the Plan. 

        (f)    To
the extent that the foregoing adjustments relate to stock or securities of the Corporation, such adjustments shall be made by the Board, whose determination in that
respect shall be final, binding and conclusive, provided that each Option granted pursuant to the Plan shall not be adjusted in a manner that causes the Option to fail to continue to qualify as an
incentive stock option within the meaning of Code Section 422. 

        (g)  Except
as hereinabove expressly provided in Section 5, the Participant shall have no rights by reason of any
subdivision or consolidation of shares of stock of any class or the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class or by reason of any
dissolution, liquidation, merger, or consolidation or spin-off of assets or stock of another corporation, and any issue by the Corporation of shares of stock of any class, or securities
convertible into shares of stock of any class, shall not affect, and no adjustments by reason thereof shall be made with respect to, the number or price of shares of Stock subject to the Option. 

        (h)  The
grant of an Option pursuant to the Plan shall not affect in any way the right or power of the Corporation to make adjustments, reclassifications, reorganizations or
changes of its capital or business structure or to merge or to consolidate or to dissolve, liquidate or sell, or transfer all or any part of its business or assets. 

        Section 11.    Tax Withholding    

        11.1    Tax Withholding.    Whenever shares of Stock are to be issued under the Plan, the Corporation shall have the
power to require the recipient of the Stock to remit to the Corporation an amount sufficient to satisfy federal, state, and local withholding tax requirements. The Corporation also shall have the
power to withhold an appropriate number of shares of Stock sufficient to satisfy federal, state and local withholding tax requirements upon the exercise of an Option under the Plan. 

        Section 12.    Indemnification    

        12.1    Indemnification.    Each person who is or shall have been a member of the Board shall be indemnified and held
harmless by the Corporation against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him in connection with or resulting from any claim, action, suit,
or proceeding to which he may be a party or in which he may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by him in
settlement thereof, with the Corporation's approval, or paid by him in satisfaction of any judgment in any such action, suit, or proceeding against him, provided,
however, that such person shall give the
Corporation an opportunity, at its own expense, to handle and defend the same before he undertakes to handle and defend it on his own behalf. The foregoing right of indemnification shall not be
exclusive of any other rights of indemnification to which such persons may be entitled under the Corporation's Certificate of Incorporation, as amended and restated from time to time, or Bylaws, as
amended an restated from time to time, as a matter of law, or otherwise, or any power that the Corporation may have to indemnify them or hold them harmless. 

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        Section 13.    Requirements of Law; Miscellaneous    

        13.1    Requirements of Law.    The granting of Options and the issuance of shares of Stock upon the exercise of an
Option shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 

        13.2    Governing Law.    The Plan, and all agreements hereunder, shall be construed in accordance with and governed
by the laws of the State of Alabama. 

        13.3    Gender and Number.    Except when otherwise indicated by the context, words in the masculine gender when used
in the Plan shall include the feminine gender, the singular shall include the plural, and the plural shall include the singular. 

	 	 	Approved and Adopted by Board of Directors of 2C Computing, Inc. on January 18, 2002
	

 	
 	

/s/  DONALD J. DAVIDSON      
 Donald J. Davidson, Secretary
	

 	
 	

Ratified by the shareholders of 2C Computing, Inc. on February 21, 2002
	

 	
 	

/s/  DONALD J. DAVIDSON      
 Donald J. Davidson, Secretary

9

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EXHIBIT 4.3

2001 STOCK OPTION PLAN OF 2C COMPUTING, INC.

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