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Exhibit 10.38    
  

EMPLOYMENT AGREEMENT

("Agreement")  

– by and between – 

WYNN DEVELOPMENT, LLC.

("Employer")  

– and – 

WILLIAM TODD NISBET

("Employee")  

 DATED: as of July 7, 2000 

  

 

EMPLOYMENT AGREEMENT
  

        THIS EMPLOYMENT AGREEMENT ("Agreement") is made and entered into as of the 7th day of July, 2000, by and between  WYNN DEVELOPMENT, LLC ("Employer") and WILLIAM TODD NISBET ("Employee"). 

 
 

WITNESSETH:    
  

        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, and is engaged in the business of developing and constructing a casino/hotel complex at such principal place of
business; and, 

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

        WHEREAS, Employee is an adult individual residing at 1813 Cedar Flat Lane, Las Vegas, Nevada, 89134; 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 do 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) a principal
of the specified Person, (ii) directly or indirectly controlling, controlled by or under common control with the specified Person, or (iii) any member, director, officer or manager of
the specified Person. For purposes of this definition, "control", "controlling", "controlled" mean the right to exercise, directly or indirectly, more than fifty percent of the voting power of the
stockholders, members or owners and, with respect to any individual, partnership, trust or other entity or association, or the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of the controlled entity. 

        (b)  "Anniversary"—means each anniversary date of the Effective Date during the Term of this Agreement (as defined
in Section 6 hereof). 

        (c)  "Cause"—means 

        (i)    the
conviction of Employee of a felony by a court of competent jurisdiction, 

        (ii)  the
indictment of Employee by a state or federal grand jury of competent jurisdiction for embezzlement or misappropriation of Employer's funds or for any act of
dishonesty or lack of fidelity towards Employer, 

        (iii)  a
decree of a court of competent jurisdiction that Employee is not mentally competent or is unable to handle his/her own affairs; 

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        (iv)  the
written confession by Employee of any act of dishonesty towards Employer or any embezzlement or misappropriation of Employer's funds; 

        (v)  the
payment (or, by the operation solely of the effect of a deductible, the failure of payment) by a surety or insurer of a claim under a fidelity bond issued to the
benefit of Employer reimbursing Employer for a loss due the wrongful act or wrongful omission to act of Employee (the occurrence of which shall cause Employee to be indebted to Employer for the
greater of either (A) the loss incurred by Employer or (B) the sums paid by Employer to Employee pursuant to thus Agreement), 

        (vi)  Employee's
breach of the restrictive covenant set forth in Paragraph 11 of this Agreement, or 

        (vii) Employee's
failure to maintain in force and in good standing any and all licenses, permits and/or approvals required of Employee by the relevant governmental
authorities for the discharge of the obligations of Employee under this Agreement, or 

        (viii)  Employer's
material violation of any statutory or common law duty of loyalty to Employer, Valvino or Wynn; 

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. 

        (d)  "Change of Control"—means the occurrence, after the effective date of this Agreement, of any of the following
events: 

        (i)    acquisition
of the Employer or Valvino by any natural person, any form of business or social organization and any other nongovernmental legal entity including, but not
limited to, a corporation, partnership, association, trust, unincorporated organization, estate or limited-liability company (collectively, a "Person"), other than an Affiliate of the Employer; 

        (ii)  the
right by any Person other than Valvino or Wynn, to exercise, directly or indirectly, more than fifty percent of the voting rights (collectively "Control") of the
members of the Company, or the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of the Company, other than an Affiliate of the Employer; 

        (iii)  a
change in the majority of the officers of the Company; or 

        (iv)  the
sale or other transfer or disposition to an unaffiliated third party of all or substantially all of Employer's or Valvino's assets. 

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

        (f)    "Effective Date"—means the date Employee begins full time employment with Employer, which shall be no later
than October 1, 2000, or this Agreement shall be null and void. 

        (g)  "Employee"—means Employee as earlier defined in this Agreement. 

        (h)  "Employer"—means Employer as earlier defined in this Agreement. 

        (i)    "Good Reason"—means 

        (i)    without
Employee's express written consent and excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied
by Employer or Employer's Affiliate promptly after receipt of notice thereof given by Employee, (A) a reduction in Employee's annual base salary or any reduction in material compensation 

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or benefits arrangements, (B) the assignment to Employee of any duties inconsistent in any respect with Employee's position (including status, offices, titles and reporting requirements),
authority, duties or responsibilities, or (C) any other action by Employer or Employer's Affiliate which results in a diminution in such position, authority, duties or responsibilities; 

        (ii)  without
Employee's express written consent, Employer requiring Employee's work location to be other than within twenty-five (25) miles of the
location where Employee was principally working immediately prior to a Change of Control; or, 

        (iii)  any
failure by Employer to obtain the express written assumption of this Agreement from any successor to Employer. 

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

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

        (k)  "Separation Payment"—means a lump sum equal to twelve (12) months' of Employee's compensation as set
forth in Sections 8(a), (d) and (e) of this Agreement. 

        (l)    "Valvino"—means Valvino Lamore, LLC, a Nevada limited liability company. 

        (m)  "Wynn"—means Stephen A. Wynn. 

        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. 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, it being understood that, prior to a Change in
Control, no change in Employee's titles or reporting responsibilities shall be a basis for finding a material reduction in the level of duties. 

        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—Project Director for Employer or such similar duties as may be assigned to Employee
by Employer as Employer may determine, including, but not limited to (i) the efficient and continuous operation of Employer and Employer's Affiliate, (ii) the preparation of relevant
budgets and allocation or relevant funds, (iii) the selection and delegation of duties and responsibilities of subordinates, (iv) the direction, review and oversight of all projects
under Employee's supervision; (v) and such other and further duties specifically related to such duties as assigned by Employer to Employee. The foregoing notwithstanding, Employee shall devote
such time to Employer's Affiliate as 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. 

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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 Employer's 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 or any construction, development or design firm not owned by Employer or any of Employer's Affiliates. 

        6.    TERM.    Unless sooner terminated as provided in this Agreement,
the term of this Agreement (the "Term") shall consist of six (6) years commencing as of the Effective Date of this Agreement and terminating on
the sixth Anniversary Date of the Effective Date, together with any extensions of such term which result from the failure to give notice as provided in the following sentence. On the sixth Anniversary
Date, and on each Anniversary Date thereafter, the Term shall be automatically extended for an additional one (1) year period unless either party shall have provided the other party ninety
(90) days' advance notice of its election not to extend such Term. References herein to the Term of this Agreement shall refer to both the initial Term and any such extended Term which has
become effective prior to Employee's termination of employment. 

        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; 

        (d)  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 of such notice, Employer must tender the Separation Payment to Employee; 

        (e)  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 of the expiration of such cure period without the
cure having been effected, Employer must tender the Separation Payment to Employee; 

        (f)    at
Employer's sole election in writing as provided in Section 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 of Employer's receipt of Employee's written election, Employer must tender the Separation
Payment to Employee; 

        (g)  at
Employee's sole election in writing as provided in Section 17 of this Agreement, after the cancellation of the first major casino resort development project
proposed by Valvino or its Affiliate for the corner of Las Vegas Boulevard and Sands Avenue in Las Vegas, Nevada, provided, however, that, within ten
(10) calendar days of Employer's receipt of Employee's written election, Employer must tender the Separation Payment to Employee; or 

        (h)  the
giving of written notice by Employer to Employee of the termination of this Agreement following a termination of Employee's License (as defined in
Section 9(b) of this Agreement). 

In
the event of a termination of this Agreement pursuant to the provisions of this Section 7(a), (b), (c) or (h), 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 

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termination of this Agreement pursuant to the provisions of this Section 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 of Two Hundred Thousand Dollars ($200,000.00) per annum during the Term of this Agreement, payable in such
installments as shall be convenient to Employer ("the Base Salary"). Such Base Salary shall be exclusive of and in addition to any other benefits which
Employer, in its sole discretion, may make available to Employee, including, but not limited to, any discretionary bonuses, profit sharing plans, pension plans, retirement plans, disability or life
insurance plan, medical and/or hospitalization plans, or any and all other benefit plans which may be in effect during the Term of this Agreement. Such Base Salary shall be subject to merit reviews on
each Anniversary Date of this Agreement and may be increased, but not decreased, as a result of such merit review(s). 

        (b)    BONUS COMPENSATION.    Employee also will be eligible to
receive a bonus at such times and in such amounts as Employer, in its sole, exclusive and unreviewable discretion, may determine. The goals, if any, which Employee must meet or exceed in order to
become eligible for bonus compensation shall be determined by Employer in Employer's sole discretion prior to or at the commencement of the period for which such goals may apply. Should Employee
voluntarily terminate his employment prior to the expiration of this Agreement, other than as set forth in Section 7(f) and (g), Employee shall be eligible only for a pro-rata
calculation of any bonus that might otherwise have been paid for the applicable fiscal period for which bonuses would have next been paid. 

        (c)    EMPLOYEE BENEFIT PLANS.    Employer hereby covenants and agrees
that it shall include Employee, if otherwise eligible, in any profit sharing plans, pension plans, retirement plans, disability or life insurance plans, medical and/or hospitalization plans, 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 employees during the Term. Nothing in this Agreement shall limit
Employer's or its Affiliates' ability to adopt, amend or terminate any such benefit plans at any time prior to a Change of Control. 

        (d)    EXPENSE REIMBURSEMENT.    During the Term and provided the same
are authorized in advance 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 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 (upon Employer's
prior approval), and (iv) the like. Prior to reimbursement, Employee shall provide Employer with sufficient detailed invoices of such expenses in accordance with the then applicable guidelines
of the Internal Revenue Service so as to entitle Employer to a deduction for such expenses. 

        (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 therefor, but in no event less than two (2) weeks each of
the first two (2) years of the Term and three (3) weeks for each of the next four (4) years of the Term, to be 

5

 

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 therefor. 

        (f)    LONG TERM INCENTIVE COMPENSATION.    Employee's
long-term compensation shall be governed by the separate letter dated 7/10/2000 from Stephen A. Wynn to Employee, a true and correct copy of which is attached hereto as Exhibit "A". 

        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 Commission") pursuant to the provisions of the relevant gaming regulatory statutes ("the Gaming
Acts") and the regulations promulgated thereunder ("the Gaming Regulations"). Employer and Employee hereby covenant and agree to
use their best efforts to obtain any and all approvals required by the Gaming Acts and/or Gaming Regulations. In the event that (1) an approval of this Agreement by the Commission is not
required for Employee to carry out his duties and responsibilities set forth in Section 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 Commission, this Agreement shall immediately terminate and shall be null and void. 

        (b)  If
applicable, Employer and Employee hereby covenant and agree that, in order for Employee to discharge the duties required under this Agreement, Employee must apply for
or hold a license, registration, permit or other approval ("the License") as issued by the Commission pursuant to the terms of the relevant Gaming Act
and as otherwise required by this Agreement. In the event Employee fails to apply for and secure, or the Commission refuses to originally issue or renew Employee's License, 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 or secure the Commission's approval, respectively. The
foregoing notwithstanding, if the source of the objections or the Commission's refusal to renew Employee's License arise as a result of any of the events described in Paragraph 1(c) of this
Agreement, 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 Commission. 

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        10.    CONFIDENTIALITY.    Employee hereby
warrants, covenants and
agrees that, without the prior express written approval of Employer, 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 confidential data, including but not limited to (i) information, drawings, sketches, plans or other documents concerning Employer's business or development plans, customers or
suppliers or those of Employer's Affiliates, (ii) Employer's or its Affiliates' development, design, construction or marketing methods or techniques, or (iii) 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 confidential
information shall include, but not be limited to, information, including a formula, pattern, compilation, program, device, method, technique or process, that (a) 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
(b) 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 of this Agreement or for such longer period so long as Employer pays to Employee the compensation set forth in
Paragraph 8(a) of this Agreement, Employee shall not directly or indirectly, either as a principal, agent, employee, employer, consultant, partner, member of a limited liability company,
shareholder of a closely held corporation, or shareholder in excess of two (2%) per cent 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 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 plan 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 the same protects the legitimate interests of Employer, imposes no undue hardship on Employee, and is not
injurious to the public. Notwithstanding the foregoing, the provisions of this Section 11(a) shall not apply in the event of a termination of this Agreement pursuant to either
Section 7(d) or Section 7(f) of this Agreement. 

        (b)  Employee
hereby further covenants and agrees that, during the Term of this Agreement and for a period of one (1) year following the expiration of the Term of this
Agreement, Employee shall not directly or indirectly, and Employee shall not suffer others to, 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 Employer's Affiliates, in or about any market in which Employer or Employer's Affiliates have or plan gaming 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 freely. 

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        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 Development, LLC

3145 Las Vegas Boulevard South

Las Vegas, Nevada 89109
	

WITH A COPY THAT SHALL NOT BE NOTICE TO:	
 	

Valvino Lamore, LLC

3145 Las Vegas Boulevard South

Las Vegas, Nevada 89109

Attn: General Counsel
	

TO EMPLOYEE:	
 	

William Todd Nisbet

1813 Cedar Flat Lane

Las Vegas, NV 89134

        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. 

        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 provisions of Paragraphs 10 and 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
principal place of business is located, any and all claims, disputes, or controversies arising between the parties hereto regarding any of the terms of this Agreement or the breach thereof, on the
written demand of either of the parties hereto, shall be submitted to and be determined by final and binding arbitration held in the state and county where Employer's principal place is located, in
accordance with Employer's or Employer's Affiliates' 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 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 Employer's 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 DEVELOPMENT, LLC	EMPLOYEE
	
 By:	

/s/  KENNETH WYNN      
 Kenneth Wynn

President	

/s/  WILLIAM TODD NISBET      
 William Todd Nisbet

9

EXHIBIT A 

July 10,
2000 

Mr. Todd
Nisbet

HAND DELIVERED 

Dear
Mr. Nisbet: 

        Desert
Inn is now owned by Valvino Lamore LLC ("Owner"). Owner is at the present time pursuing equity financing for the construction of a new facility on the site of the Desert Inn
casino. It is not clear at this time what form of entity will ultimately be used as the vehicle for such financing or for the ownership of the new facility (such entity is referred to as the "Casino
Company"). Furthermore, until the completion of such arrangements, the ownership interest of the new equity participants in the Casino Company and the cost and terms of such equity investment will not
be known. 

        You
have entered into a long-term employment agreement with Owner which contemplates that you will receive an equity participation in the Casino Company. For the reasons
discussed in the first paragraph, it is not possible to specify the exact amount or the exact form of the equity participation that you are to receive pursuant to your employment contract. The purpose
of this letter agreement is to describe the minimum level of equity participation to be provided as incentive compensation and the essential terms under which participation is to be granted: 

        1.    Your
equity interest will be in the form of an option to purchase an interest in the Casino Company (the "Option"). The Option shall be not be transferable. The term of
the Option shall be 10 years. 

        2.    If
the Casino Company is organized as a corporation, the Option will provide for the purchase of at least that number of shares of common stock equal to one percent of
the common stock ownership of Stephen A. Wynn ("Wynn") after the completion of the original round of equity financing. Such percentage shall be calculated on a fully diluted basis, assuming the
exercise of all outstanding options or conversion rights with respect to the equity of the Casino Company. The exercise price of the Option will be equal to the effective cost per share of the common
stock held in the Casino Company by Wynn after the completion of the original round of equity financing. 

        3.    If
the Casino Company is organized as a limited liability company or similar non-corporate entity, the Option will provide for the purchase of units in the
LLC with a share of profits and losses equal to one percent of the share of profits and losses owned by Wynn after the completion of the original round of equity financing (and a capital interest
equal to the aggregate exercise price). Such percentage shall be calculated on a fully diluted basis, assuming the exercise of all outstanding options or conversion rights with respect to the equity
of the Casino Company. The exercise price of the Option will be equal to the effective cost per unit held in the Casino Company by Wynn after the completion of the original round of equity financing. 

        4.    The
Option shall vest on a single vesting date that is six years after the effective date of your employment agreement. If your employment is terminated with cause for
any reason before the vesting date, you shall forfeit the Option and the Option shall terminate immediately. 

        5.    The
Option shall provide for early exercise prior to vesting in order to permit you to effect an election under Section 83(b) of the Internal Revenue Code. Any
stock or units received pursuant to such early exercise shall be subject to repurchase at the exercise price if your employment is terminated for any reason before the vesting date. Until such time as
the Casino Company becomes a publicly traded company, vested stock or units received pursuant to the Option will be subject to repurchase at the then fair market value of such stock or units if your
employment is terminated for any reason after the vesting date. 

        6.    The
Option shall provide for customary dilution adjustments for stock dividends, stock splits and similar corporate transactions, but shall not be protected from dilution
in connection with subsequent equity financings or similar events. 

        7.    In
the sixth year of your employment contract (unless your employment has been terminated before that time for any reason) you will be paid a bonus equal to the exercise
price of the Option. 

        8.    Stock
or units purchased pursuant to the Option (whether vested or unvested) shall be subject to any shareholders or operating agreements or other restrictions imposed on
other shareholders or unit holders of the Casino Company, and exercise of the Option shall be contingent upon execution of any documentation reasonably required by the Casino Company to implement such
agreements and restrictions. 

        9.    Exercise
of the Option shall be contingent on your obtaining any licenses or approvals required by applicable gaming regulations. 

        10.  The
Option and agreements described herein shall constitute a material consideration of your employment. 

        Please
sign and acknowledge your agreement to the foregoing where indicated below. 

Valvino
Lamore, LLC 

	/s/  STEPHEN A. WYNN      
 by Stephen A. Wynn	 	 
	

AGREED AND ACKNOWLEDGED	
 	

 
	

/s/  TODD NISBET      
 Todd Nisbet	
 	

 

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Exhibit 10.38

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Exhibit 10.39    
  

EMPLOYMENT AGREEMENT  

 ("Agreement")  

 —by and between—  

 WYNN RESORTS, LIMITED  

 ("Employer")  

 —and—  

 MARC H. RUBINSTEIN  

 ("Employee")  

 DATED: as of September 6th, 2002  

 EMPLOYMENT AGREEMENT  

         THIS EMPLOYMENT AGREEMENT ("Agreement") is made and entered into as of the 6th day of September 2002, by
and between WYNN RESORTS, LIMITED ("Employer") and Marc H.
Rubinstein ("Employee"). 

WITNESSETH:  

        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 2302 Prometheus Court, Henderson, Nevada 89074; 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)  "Anniversary"—means each anniversary date of the Effective Date during the Term of this Agreement (as defined
in Paragraph 6 hereof). 

        (c)  "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. 

        (d)  "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 

2

 

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 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. 

        (e)  "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. 

        (f)    "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. 

        (g)  "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. 

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

3

 

        (i)    "Separation Payment"—means a lump sum equal to (A) Employee's Base Salary (as defined in
Subparagraph 8(a) of this Agreement) for the twelve (12) months immediately following termination, plus (B) the bonus that was paid to Employee under Subparagraph 8(b) for
the preceding bonus period, projected over the twelve (12) months following that bonus period, plus (C) any accrued but unpaid vacation pay, plus (D) any 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. 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 Senior Vice President—General Counsel 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 Employer's
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 Employer's
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 Affiliates. 

        6.    TERM.    Unless sooner terminated as provided in this Agreement,
the term of this Agreement (the "Term") shall consist of five (5) years commencing as of the Effective Date of this Agreement and terminating on
the fifth Anniversary Date of the Effective Date. 

        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; 

4

 

        (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 Three Hundred Sixty Thousand Dollars ($360,000.00) 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 

5

 

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. 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 required for Employee to carry out his duties and responsibilities set
forth in Paragraph 4 of this 

6

 

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(c) 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 confidential 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 confidential 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 percent (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 

7

 

and that 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 Employer's 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	
 	

Wynn Resorts, Limited
	

THAT SHALL NOT BE NOTICE TO:	
 	

3145 Las Vegas Boulevard South

Las Vegas, Nevada 89109

Attn: Legal Department
	

TO EMPLOYEE:	
 	

Marc H. Rubinstein

2302 Prometheus Court

Henderson, Nevada 89074

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. 

8

 

        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 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 Employer's Affiliates. 

9

 

        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	
 	

By:	

/s/  MARC H. RUBINSTEIN      
 Marc H. Rubinstein

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 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 

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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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QuickLinks

Exhibit 10.39

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