Document:

CACQ-ex10.24 Irrevocable Proxy

EXHIBIT 10.24
IRREVOCABLE PROXY
IRREVOCABLE PROXY (this “Proxy”), dated as of October 21, 2013, and made and granted by the parties listed on Schedule A-1 hereto (each a “Sponsor”, and collectively, the “Sponsors”) and by the parties listed on Schedule A-2 hereto (each a “Co-Investor”, and collectively, the “Co-Investors”, and together with the Sponsors, each, a “Stockholder” and, collectively, the “Stockholders”).
WHEREAS, on the date hereof, Caesars Acquisition Company, a Delaware corporation (the “Company”), has issued shares of voting common stock, par value $0.001 per share of the Company (the “Class A CAC Stock”), to the Sponsors in connection with their participation (the “Investment”) in the Company’s offering of subscription rights for Class A CAC Stock (the “Rights Offering”) and intends to issue Class A CAC Stock to the Co-Investors in connection with their participation in the Rights Offering, made by the Company to all stockholders of Caesars Entertainment Corporation, a Delaware corporation (“CEC”);
WHEREAS, the Class A CAC Stock represents an indirect economic interest, and the sole voting interest, in Caesars Growth Partners, LLC, a Delaware limited liability company (“CGP”), which is a joint venture between CAC and certain subsidiaries of CEC;
WHEREAS, in connection with the Investment and/or the Rights Offering, each Stockholder owns or will own the number of shares of Class A CAC Stock set forth opposite its name on Schedule A-1 and on Schedule A-2 hereto (the “Subject Shares”);
WHEREAS, as of the date hereof, the Subject Shares constitute and, as of the date of the closing of the Rights Offering, will constitute, the majority of the issued and outstanding Class A CAC Stock and therefore, the Stockholders hold as of the date hereof, and will hold as of the date of the closing of the Rights Offering, majority voting control of the Company;
WHEREAS, in connection with the Investment and/or the Rights Offering, and in compliance with gaming regulatory requirements, each Stockholder desires to vest voting and dispositive control in Hamlet Holdings LLC, a Delaware limited liability company (“VoteCo”), with respect to matters relating to the Company and the Subject Shares by granting this Proxy as set forth below; and
WHEREAS, for the avoidance of doubt, VoteCo is the current holder, by irrevocable proxy, of the majority voting control in CEC.
NOW THEREFORE, in consideration of the foregoing and of the mutual promises of the parties hereto, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows: 
Section 1.Representations and Warranties of Each Stockholder.  Each Stockholder represents and warrants to VoteCo with respect to itself as follows:

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(a)    Authority; Execution and Delivery; Enforceability.  The Stockholder has requisite limited liability company power and authority to execute and deliver this Proxy.  The execution and delivery of this Proxy and the grant hereunder have been duly and validly authorized by the Stockholder, and no other limited liability company proceedings on the part of the Stockholder are necessary to authorize the grant contemplated by this Proxy.  This Proxy has been duly and validly executed and delivered by the Stockholder and constitutes the valid and binding proxy of the Stockholder, enforceable against the Stockholder in accordance with its terms, except as enforceability may be limited by bankruptcy laws, other similar laws affecting creditors’ rights and general principles of equity.
(b)    No Conflicts.  Neither the execution and delivery by the Stockholder of this Proxy nor the compliance by the Stockholder with the terms and conditions hereof will violate, result in a breach of, or constitute a default under its organizational documents, or violate, result in a breach of, or constitute a default under, in each case in any material respect, any agreement, instrument, judgment, order or decree to which the Stockholder is a party or is otherwise bound or give to others any material rights or interests (including rights of purchase, termination, cancellation or acceleration) under any such agreement or instrument.
(c)    The Subject Shares.  Upon the issuance thereof, (i) the Stockholder will be the record and beneficial owner of the Subject Shares set forth opposite its name on Schedule A; (ii) the Stockholder will have the sole right to vote and dispose such Stockholder’s Subject Shares, except as contemplated by this Proxy, and (iii) none of such Stockholder’s Subject Shares will be subject to any voting trust or other agreement, arrangement or restriction with respect to the voting of such Subject Shares, except as contemplated by this Proxy, that certain Harrah’s Entertainment, Inc. Stockholders Agreement, dated as of January 28, 2008, as it may be amended from time to time in accordance with its terms (the “CEC Stockholders Agreement”) and that certain Omnibus Voting Agreement, dated as of the date hereof and as it may be amended from time to time in accordance with its terms (the “Omnibus Voting Agreement”).
Section 2.    Irrevocable Proxy.
(a)    Each Stockholder hereby irrevocably constitutes and appoints VoteCo, with full power of substitution, its true and lawful proxy and attorney-in-fact to (i) vote all of the Subject Shares at any meeting (and any adjournment or postponement thereof) of the Company’s stockholders, and in connection with any written consent of the Company’s stockholders and (ii) direct and effect the sale, transfer or other disposition of all or any part of the Subject Shares, if, as and when so determined in the sole discretion of VoteCo.  For the avoidance of doubt, this Proxy shall be effective with respect to the portion of the Subject Shares acquired by the Co-Investors pursuant to the Rights Offering immediately upon the closing of such Rights Offering.
(b)    The proxy and power of attorney granted herein shall be irrevocable during the Term (as defined below), shall be deemed to be coupled with an interest sufficient in law to support an irrevocable proxy, and shall revoke all prior proxies granted by each Stockholder (if any) with respect to the Subject Shares.  Each Stockholder shall not grant to any person any proxy which conflicts with the proxy granted herein, and any attempt to do so shall be void.

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(c)    VoteCo may exercise the proxy granted herein with respect to Subject Shares, only during the Term, and shall have the right to vote the Subject Shares at any meeting of the Company’s stockholders and in any action by written consent of the Company’s stockholders in accordance with the provisions of Section 2(a) above.  Unless expressly requested by VoteCo in writing, each Stockholder shall not vote any or all of the Subject Shares at any such meeting or in connection with any such written consent of stockholders.  The vote of VoteCo shall control in any conflict between a vote of, or written consent with respect to, the Subject Shares by VoteCo and a vote or action by Stockholder with respect to the Subject Shares.
(d)    All or a portion of the Subject Shares, as the case may be, shall be released from the proxy and voting arrangement created in this Section 2 and in Section 3 below, upon the sale, transfer or other disposition by VoteCo (including pursuant to the consummation of a registered offering) of the Subject Shares (a “Release Event”).  Such release of Subject Shares hereunder shall occur automatically, without any requirement for any further act by such Stockholder or the delivery of any certificate to memorialize the same.
Section 3.    Covenants of Each Stockholder.  Each Stockholder covenants and agrees during the Term as follows:
(a)    The Stockholder hereby agrees, while this Proxy is in effect with respect to any Subject Shares, and except as contemplated hereby or with respect to the CEC Stockholders Agreement or Omnibus Voting Agreement, (i) not to enter into any voting agreements, whether by proxy, voting agreement or other voting arrangement with respect to such Subject Shares, and (ii) not to take any action that would make any representation or warranty of such Stockholder contained herein untrue or incorrect, in each case, that would have the effect of preventing the Stockholder from performing its obligations under this Proxy.
(b)    The Stockholder shall not (i) sell, transfer, pledge or otherwise dispose or encumber of any of its Subject Shares, any beneficial ownership thereof or any other interest therein, and (ii) enter into any contract, arrangement or understanding with any person that violates or conflicts with or would reasonably be expected to violate or conflict with, such Stockholder’s obligations under this Section 3(b).
Section 4.    Term and Termination.  The term of this Proxy, including the proxy granted pursuant to Section 2 hereof and each Stockholder’s covenants and agreements contained herein with respect to the Subject Shares held by such Stockholder, shall commence as of the date hereof and shall terminate automatically with respect to any and all Subject Shares as and when, and to the extent, that such Subject Shares are subject to a Release Event as set forth above (the “Term”).
Section 5.    No Liability.  Neither VoteCo (or any of its affiliates), nor any direct or indirect former, current or future partner, member, stockholder, director, manager, officer or agent of VoteCo or any of its affiliates, or any direct or indirect former, current or future partner, member, stockholder, employee, director, manager, officer or agent of any of the foregoing (each, an “Indemnified Person”) shall be liable, responsible or accountable in damages or otherwise to any or all of the Stockholders or to any or all of the members thereof, their respective successors 

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or assigns by reason of any act or omission related to the possession or exercise of this Proxy, and each Stockholder shall indemnify, defend and hold harmless each Indemnified Person in respect of the same.  Each Stockholder acknowledges and agrees that no duty is owed to such Stockholder by VoteCo (or any or all of the other Indemnified Persons) in connection with or as a result of the granting of this Proxy or by reason of any act or omission related to the possession or the exercise thereof, and, to the extent any duty shall nonetheless be deemed or found to exist, each Stockholder hereby expressly and knowingly irrevocably waives, to the fullest extent permitted by applicable law, any and all such duty or duties, regardless of type or source.
Section 6.    General Provisions.
(a)    Assignment.  This Proxy shall not be assignable by any or all of the Stockholders.
(b)    No Ownership Interest.  Except as expressly set forth in this Proxy, nothing contained in this Proxy shall be deemed to vest in VoteCo any direct or indirect ownership or incidence of ownership of or with respect to the Subject Shares.
(c)    Severability.  If any provision of this Proxy would be held in any jurisdiction to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Proxy or affecting the validity or enforceability of such provision in any other jurisdiction.  Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn; without invalidating the remaining provisions of this Proxy or affecting the validity or enforceability of such provision in any other jurisdiction.
(d)    Governing Law.  This Proxy shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of laws.

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IN WITNESS WHEREOF, each Stockholder has duly executed this Proxy as of the date first written above.
APOLLO HAMLET HOLDINGS, LLC
		
	By:
	/s/Marc Rowan     
Name: Marc Rowan 
Title:    

APOLLO HAMLET HOLDINGS B, LLC
		
	By:
	/s/ Marc Rowan     
Name: Marc Rowan 
Title:    

[Signature Page to Irrevocable Proxy]

TPG HAMLET HOLDINGS, LLC
		
	By:
	/s/ David Bonderman     
Name: David Bonderman 
Title:

TPG HAMLET HOLDINGS B, LLC
		
	By:
	/s/David Bonderman     
Name: David Bonderman 
Title:

[Signature Page to Irrevocable Proxy]

CO-INVEST HAMLET HOLDINGS, SERIES LLC
By Its Managing Members
Apollo Management VI, L.P. 
on behalf of affiliated investment funds
By: AIF VI Management, LLC, 
its general partner
		
	By:
	/s/ Marc Rowan     
Name: Marc Rowan 
Title:   

TPG GenPar V, L.P.
By: TPG GenPar V Advisors, LLC 
its general partner
		
	By:
	/s/ David Bonderman     
Name: David Bonderman 
Title:

CO-INVEST HAMLET HOLDINGS B, LLC
By Its Managing Members
Apollo Management VI, L.P. 
on behalf of affiliated investment funds
By: AIF VI Management, LLC, 
its general partner
		
	By:
	/s/ Marc Rowan     
Name: Marc Rowan 
Title:   

TPG GenPar V, L.P.
By: TPG GenPar V Advisors, LLC 
its general partner
		
	By:
	/s/ David Bonderman     
Name: David Bonderman 
Title:

[Signature Page to Irrevocable Proxy]

[Signature Page to Irrevocable Proxy]

Schedule A-1
Sponsors
	
			
	Stockholder
	Shares of CAC Stock
	Address

	Apollo Hamlet Holdings, LLC
	12,406,404
	Apollo Management VI, L.P.
9 West 57th St., 43rd Flr.
New York, NY 10019

	Apollo Hamlet Holdings B, LLC
	14,088,900
	Apollo Management VI, L.P.
9 West 57th St., 43rd Flr.
New York, NY 10019

	TPG Hamlet Holdings, LLC
	23,299,360
	TPG Capital, L.P.
301 Commerce Street, Suite 3300
Fort Worth, TX 76102

	TPG Hamlet Holdings B, LLC
	3,195,944
	TPG Capital, L.P.
301 Commerce Street, Suite 3300
Fort Worth, TX 76102

A-1
 

Schedule A-2
Co-Investors
	
			
	Stockholder
	Shares of CAC Stock
	Address

	Co-Invest Hamlet Holdings, Series LLC
	 
	Apollo Management VI, L.P.
9 West 57th St., 43rd Flr.
New York, NY 10019
and
TPG Capital, L.P.
301 Commerce Street, Suite 3300
Fort Worth, TX 76102

	Co-Invest Hamlet Holdings B, LLC
	 
	Apollo Management VI, L.P.
9 West 57th St., 43rd Flr.
New York, NY 10019
and
TPG Capital, L.P.
301 Commerce Street, Suite 3300
Fort Worth, TX 76102

A-12013.12.3110-KEx10.5.7

Exhibit 10.5.7
KNOWLES CORPORATION
2014 EQUITY AND CASH INCENTIVE PLAN
NONEMPLOYEE DIRECTOR DEFERRAL PROGRAM
		
	1.
	Purpose of Program

The purpose of this Nonemployee Director Deferral Program (the “Program”), adopted and administered under the Knowles Corporation 2014 Equity and Cash Incentive Plan (the “Incentive Plan”), is to enable nonemployee directors of Knowles Corporation (the “Company”) to elect to defer the receipt of shares of common stock of the Company (“Common Stock”) payable to them for their service on the Board of Directors of the Company (the “Board”).
		
	2.
	Administration of Program

The Program shall be administered by the Compensation Committee of the Board (the “Committee”). The Committee shall have the power and authority to administer, construe and interpret the Program, to make rules for administering the Program and to make changes in such rules. 
		
	3.
	Participation

All Nonemployee Directors shall be eligible to participate in the Program. The term “Nonemployee Director” means a member of the Board who, at the time of performance of the services relevant to payment under the Incentive Plan, is not an employee of the Company or any of its subsidiaries. 
		
	4.
	Election to Defer Payment Date of Shares

(a)    Initial Year of Service.  Prior to the time at which a Nonemployee Director commences his or her service on the Board, such Nonemployee Director may elect to defer the receipt of 100% of the shares of Common Stock to be granted by the Company for services to be performed by the Nonemployee Director in the calendar year in which such service commences.  
(b)    Subsequent Years.  A Nonemployee Director may elect to defer the receipt of 100% of the shares of Common Stock to be granted by the Company for services performed in any subsequent calendar year by submitting a deferral election during the open enrollment period prior to the first day of such calendar year.  
(c)    Changing Deferral Elections.  An election made by a Nonemployee Director shall be irrevocable for the calendar year to which it applies and shall continue in effect for subsequent calendar years unless the Nonemployee Directors submits a new deferral election or terminates his or her previous deferral election prior to the first day of such subsequent year.
		
	5.
	Deferred Stock Unit Account

(a)    Deferred Stock Units.  Each share of Common Stock deferred by a Nonemployee Director pursuant to Section 4 shall be converted into a deferred stock unit (a “Deferred Stock Unit”), which shall be credited to an account established on behalf of such Nonemployee Director (an “Account”).  Each Deferred Stock Unit represents the right to receive one share of Common Stock at the time determined in accordance with Section 6 of this Program.  

(b)    Dividend Equivalents.  As of the record date for each normal cash dividend, if any, payable with respect to shares of Common Stock, a dividend equivalent shall be credited to the Account of each Nonemployee Director in an amount equal to the cash dividend that would have been paid on the number of Deferred Stock Units then credited to such Account if such Deferred Stock Units were issued and outstanding shares of Common Stock.  Such dividend equivalents shall be paid in cash, without interest or earnings, at the time that shares of Common Stock are distributed in settlement of the related Deferred Stock Units, in accordance with Section 6 of this Program.
		
	6.
	Timing of Payment

Upon the earliest to occur of (i) the date of a Nonemployee Director’s separation from service on the Board, (ii) an anniversary of the grant date elected by the Nonemployee Director at the time such Nonemployee Director made his or her deferral election for such year, which may not be less than one year or more than 15 years after the grant date, and (iii) a change in control event, as defined in Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), the Company shall (A) issue to such Nonemployee Director a share of Common Stock for each Deferred Stock Unit credited to such Nonemployee Director’s Account maintained under this Program and (B) make a cash payment to such Nonemployee Director in an amount equal to the dividend equivalents credited to the Nonemployee Director’s Account.    
		
	7.
	Limitations and Conditions 

(a)    Shares issued under the Program shall be granted pursuant to the Incentive Plan or any successor thereto.  The terms of this Program and the awards deferred hereunder are subject to the terms and conditions of the Incentive Plan, which are hereby incorporated herein in their entirety and made a part of this Program. Unless otherwise indicated, any capitalized term used but not defined herein has the meaning ascribed to such term in the Incentive Plan.
(b)    Nothing contained herein shall be deemed to create the right in any Nonemployee Director to remain a member of the Board, to be nominated for reelection or to be reelected as such or, after ceasing to be such a member, to receive any shares of Common Stock under the Program to which he or she is not already entitled with respect to any year. 
		
	8.
	Stock Adjustments

In the event of any change in the Common Stock through merger, consolidation, reorganization, reincorporation, recapitalization, reclassification, stock dividend, stock split, reverse stock split, split-up, split-off, spin-off, combination of shares, exchange of shares or similar change in the capital structure of the Company, if all or substantially all the assets of the Corporation are transferred to any other corporation in a reorganization, or in the event of payment of a dividend or distribution to the stockholders of the Company in a form other than Common Stock (excepting normal cash dividends) that has a material effect on the fair market value of shares of Common Stock, appropriate adjustments shall be made by the Committee in the number of Deferred Stock Units credited to each Account maintained under this Program. 
		
	9.
	Amendment and Termination

The Board shall have the power to amend or terminate the Program at any time, subject to stockholder approval requirements under applicable laws. 
		
	10.
	Miscellaneous 

(a)    Severability. If any provision of the Program is held illegal or invalid for any reason, the illegality or invalidity will not affect the remaining parts of the Program, and the Program will be construed and enforced as if the illegal or invalid provision had not been included. 

    

(b)    Requirements of Law. The issuance of payments under the Program will be subject to all applicable laws, rules, and regulations, and to any approvals required by any governmental agencies or national securities exchanges. 
(c)    Unfunded Status of the Program. The Program is intended to constitute an unfunded plan. With respect to any payments not yet made to a Nonemployee Director by the Company, nothing contained herein will give any rights to a Nonemployee Director that are greater than those of a general creditor of the Company. 
(d)    Section 409A.  The provisions of this Program shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A of the Code.  If the Company determines that any amounts payable hereunder may be taxable to the Nonemployee Director under Section 409A of the Code, the Company may (i) adopt such amendments to the Program and appropriate policies and procedures, including amendments and policies with retroactive effect, that the Company determines necessary or appropriate to preserve the intended tax treatment of the benefits provided by this Program and/or (ii) take such other actions as the Company determines necessary or appropriate to avoid or limit the imposition of an additional tax under Section 409A; provided, that neither the Company nor any of its affiliates nor any other person or entity shall have any liability to any Nonemployee Director with respect to the tax imposed by Section 409A of the Code.
(e)    Governing Law. The Program will be construed in accordance with and governed by the laws of the State of Delaware, determined without regard to its conflict of law rules. 
		
	11.
	Effective Date

The Program shall be effective as of February 28, 2014.

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