(State of incorporation) |
(I.R.S. Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
☒ |
Accelerated filer |
☐ | ||||
Non-accelerated filer |
☐ |
Smaller reporting company |
||||
Emerging growth company |
Page |
||||||
3 |
||||||
8 |
||||||
51 |
||||||
54 |
||||||
58 |
||||||
60 |
||||||
70 |
ITEM 10. |
Directors, Executive Officers, and Corporate Governance |
NAME |
AGE |
COMMITTEES | ||||
Anthony Rodio |
61 |
None | ||||
Thomas Benninger |
62 |
Audit, Strategy & Finance, Transaction | ||||
Juliana Chugg |
52 |
Compensation & Management Development, Governance & Corporate Responsibility | ||||
Denise Clark |
62 |
Audit, Compensation & Management Development (Chair) | ||||
Keith Cozza |
41 |
Governance & Corporate Responsibility, Strategy & Finance, Transaction | ||||
John Dionne |
56 |
Audit (Chair) | ||||
James Hunt |
64 |
Chairman of the Board | ||||
Jan Jones Blackhurst |
71 |
None | ||||
Don Kornstein |
68 |
Governance & Corporate Responsibility, Strategy & Finance (Chair), Transaction (Chair) | ||||
Courtney Mather |
43 |
Compensation & Management Development, Strategy & Finance, Transaction | ||||
James Nelson |
70 |
Audit |
NAME |
AGE |
POSITION | ||||
Richard D. Broome |
61 |
Executive Vice President, Communications and Government Relations | ||||
Michelle Bushore |
52 |
Executive Vice President, General Counsel, Chief Legal & Risk Officer, and Corporate Secretary | ||||
Monica Digilio |
57 |
Executive Vice President and Chief Human Resources Officer | ||||
Eric Hession |
45 |
Executive Vice President and Chief Financial Officer | ||||
Christopher Holdren |
50 |
Executive Vice President and Chief Marketing Officer | ||||
Thomas Jenkin |
65 |
Global President of Destination Markets | ||||
Christian Stuart |
41 |
Executive Vice President, Gaming and Interactive Entertainment |
ITEM 11. |
Executive Compensation |
Anthony Rodio (1) |
Chief Executive Officer | |
Mark Frissora (2) |
Former President and Chief Executive Officer | |
Eric Hession |
Executive Vice President and Chief Financial Officer | |
Thomas Jenkin |
Global President of Destination Markets | |
Christopher Holdren |
Executive Vice President and Chief Marketing Officer | |
Monica Digilio |
Executive Vice President and Chief Human Resources Officer | |
Timothy Donovan (3) |
Former Executive Vice President, General Counsel, and Chief Legal, Risk and Security Officer | |
Les Ottolenghi (4) |
Former Executive Vice President and Chief Information Officer |
(1) |
Mr. Rodio joined the Company effective on May 6, 2019, as discussed in greater detail in “-Discussion of the Summary Compensation Table.” |
(2) |
The Company and Mr. Frissora entered into a separation agreement, dated November 1, 2018 and amended on December 21, 2018, as discussed in greater detail in “-Discussion of the Summary Compensation Table,” pursuant to which Mr. Frissora’s employment terminated as of April 30, 2019. |
(3) |
Mr. Donovan’s employment terminated as of June 6, 2019, as discussed in greater detail in “-Discussion of the Summary Compensation Table.” In connection with his resignation, Mr. Donovan provided a general release of claims against the Company and we entered into a consulting agreement with him. |
(4) |
The Company and Mr. Ottolenghi entered into a separation agreement, dated November 15, 2019, as discussed in greater detail in “-Discussion of the Summary Compensation Table,” pursuant to which Mr. Ottolenghi’s employment terminated effective November 15, 2019. |
• | Introduced free cash flow as a financial performance metric of our 2019 Bonus Plan to supplement Adjusted EBITDA and customer satisfaction score in rewarding named executive officers for a combination of not only profitability and customer experience, but also cash flow management. |
• | Included Adjusted EBITDA as a performance metric in the 2018 performance stock units and Adjusted EBITDAR in the 2019 performance stock units as well as introduced performance stock units based on relative stockholder return (“rTSR”) in 2019, with payouts to be determined based on our three-year total shareholder return in relation to that of the S&P 500 index, to further align named executive officers’ long-term compensation with shareholder interests. |
• | Made 50% of our named executive officers’ equity grants performance based, substantially increasing the proportion of total compensation that is at risk. |
• | Our new Chief Executive Officer is compensated at a significantly lower rate than his predecessor. |
1 |
We added rTSR as a metric to our long-term incentive (“LTI”) program, to further enhance alignment with stockholder interests |
3 |
We introduced a new deferred compensation plan, the Executive Supplemental Savings Plan III, as a means for named executive officers to defer receipt and taxation of a portion of current compensation | |||||||
| ||||||||||
2 |
We granted cash retention bonuses to key executives to minimize disruption and encourage the continued availability of top talent through the completion of pending merger activity |
• | In August 2018, the Compensation Committee approved increases in base salaries for Messrs. Hession, Jenkin, Holdren, and Ottolenghi, effective January 1, 2019, which ranged from 2.5% to 10.8%. |
• | In December 2018, the Compensation Committee determined that free cash flow should supplement Adjusted EBITDA and customer satisfaction score for the 2019 Bonus Plan, to reward the named executive officers for a combination of profitability, customer experience and cash flow management. |
• | In January 2019, the Compensation Committee approved vesting of the first-year tranche of 2018 Performance Share Units (“PSUs”) at 95% of target, given that the 2018 Adjusted EBITDA result was at 99.5% of the target goal. |
• | In January 2019, the Compensation Committee approved the vesting of 150,000 non-qualified performance-based stock options that had been granted to Mr. Frissora in February 2015, for which performance criteria as outlined in the award agreement had been achieved. |
• | In March 2019, the Compensation Committee approved an annual LTI grant to our named executive officers that placed 50% weighting on PSUs tied to Adjusted EBITDAR performance goals and rTSR and 50% weighting on time-vesting Restricted Stock Units (“RSUs”). |
• | In January 2020, annual cash bonuses were determined at 95% of target based on 2019 results for the performance criteria, including Adjusted EBITDA, free cash flow, overall customer service and enterprise Net Promoter Score with an additional 5% adjustment to reflect employees’ efforts with respect to and to continue to incentivize employees to close the Merger with ERI. |
EARNED BASE SALARY ($) |
ANNUAL CASH BONUS AWARD (AT TARGET) ($) |
PERFORMANCE- BASED STOCK UNIT AWARD (ADJUSTED EBITDAR) (2019-2021) (AT TARGET) ($) |
PERFORMANCE- BASED STOCK UNIT AWARD (rTSR) (2019-2021) (AT TARGET) ($) |
FAIR VALUE OF TIME-VESTED RESTRICTED STOCK UNITS GRANTED ($) |
||||||||||||||
Mr. Rodio |
946,154 |
1,972,602 |
— |
— |
— |
|||||||||||||
Mr. Frissora |
715,385 |
1,430,769 (1) |
1,750,004 |
1,750,000 |
3,500,000 |
|||||||||||||
Mr. Hession |
812,596 |
812,596 |
407,506 |
407,507 |
815,003 |
|||||||||||||
Mr. Jenkin |
1,291,317 |
968,488 |
484,607 |
484,613 |
969,205 |
|||||||||||||
Mr. Holdren |
691,365 |
518,524 |
302,699 |
302,703 |
605,397 |
|||||||||||||
Ms. Digilio |
590,000 |
442,500 |
225,005 |
225,003 |
450,002 |
|||||||||||||
Mr. Donovan |
392,308 |
294,231 (2) |
325,005 |
325,008 |
650,001 |
|||||||||||||
Mr. Ottolenghi |
561,179 |
420,885 (2) |
271,308 |
271,305 |
542,616 |
(1) |
Per Mr. Frissora’s separation agreement entered into in connection with his resignation, Mr. Frissora’s 2019 annual cash bonus award was prorated based on his actual base earnings in 2019 while Mr. Frissora was employed by the Company. |
(2) |
Target award values for Messrs. Donovan and Ottolenghi have also been prorated based on their actual base salary earnings in 2019 for the time that each executive was employed by the Company. |
• | aligning our incentive compensation strategy with business objectives, including enhancing stockholder value and customer satisfaction; |
• | supporting a culture of strong performance and accountability by rewarding employees for results; |
• | attracting, retaining and motivating talented and experienced executives; and |
• | fostering a shared commitment among our senior executives by aligning company and individual goals. |
WHAT WE DO ✓ Pay for Performance: at-risk incentive-based compensation representing approximately 75% of the target compensation awarded to our named executive officers as a group for 2019.✓ Challenging Threshold Performance Goals and Limits on Payouts: ✓ Competitive Pay for Market: ✓ Advisory Say-on-Pay Vote: say-on-pay vote annually in order to obtain more timely feedback on our compensation philosophy and implementation decisions.✓ Robust Stock Ownership Guidelines: ✓ Insider Trading and Anti-Hedging Policies: ✓ Annual Pay Evaluations: ✓ Clawback Policy: |
WHAT WE DON’T DO Ñ No Guaranteed Bonuses: Ñ No Automatic Salary Increases or Incentive Grants: Ñ No Excise Tax Gross-ups: gross-ups for any officer (other than related to relocation benefits).Ñ No Single-Trigger Change in Control Severance: Ñ No Excess Executive Perquisites: |
• | Chief Executive Officer Compensation: |
• | Other Senior Executive Officer Compensation: |
• | Director Compensation: non-employee directors, which included a review of our practices against peers both within and outside the gaming and hospitality industry. |
• | Executive Compensation Plans: |
• | Equity Compensation Plans: |
• | Willis Towers Watson served as the Compensation Committee’s advisor in 2019 and provided advice and market-practice information on a variety of topics, including executive pay-level benchmarking, incentive design considerations, non-employee director compensation, govern and transaction-related pay considerations. |
• | Mercer Investment Consulting was retained by the Executive Deferred Compensation Plan Investment Committee to advise this committee on investment management performance, monitoring, investment policy development and investment manager searches relating to our executive deferred compensation plans. |
• | Salaries are linked to competitive factors and internal equity, and can be (but are not required to be) increased as a result of successful job performance. |
• | Our annual bonus programs are competitively based and provide incentive compensation based on our financial performance and customer service scores. |
• | Long-term incentives are tied to our financial performance and enhancing stockholder value. |
SHORT-TERM |
LONG-TERM | |
Fixed and Variable Pay |
Fixed and Variable Pay | |
Base salary |
Long-term cash incentive awards | |
Senior Executive Incentive Plan (employing the goals under the Bonus Plan) |
RSUs PSUs |
Boyd Gaming Corporation Darden Restaurants, Inc. Norwegian Cruise Lines Holdings, Inc. Hilton Worldwide Holdings, Inc. |
Las Vegas Sands Corporation Live Nation Entertainment, Inc. MGM Resorts International Marriott International, Inc. |
Royal Caribbean Cruises Ltd. Viacom, Inc. Wyndham Worldwide Corporation Wynn Resorts, Limited |
• | Merit: |
• | Market: |
• | Promotional: |
• | Additional Responsibilities: |
• | Retention: |
NAME |
2018 ANNUAL SALARY ($) |
2019 ANNUAL SALARY ($) |
% CHANGE |
|||||||||
Anthony Rodio |
— |
1,500,000 |
— |
% | ||||||||
Mark Frissora |
2,000,000 |
2,000,000 |
— |
% | ||||||||
Eric Hession (1) |
735,438 |
815,000 |
10.8 |
% | ||||||||
Thomas Jenkin (2) |
1,260,750 |
1,292,269 |
2.5 |
% | ||||||||
Christopher Holdren (3) |
675,000 |
691,875 |
2.5 |
% | ||||||||
Monica Digilio (4) |
590,000 |
590,000 |
— |
% | ||||||||
Timothy Donovan |
850,000 |
850,000 |
— |
% | ||||||||
Les Ottolenghi |
563,750 |
620,125 |
10 |
% |
(1) |
Mr. Hession’s base salary was increased to $839,450 effective as of January 1, 2020. |
(2) |
Mr. Jenkin’s base salary was increased to $1,318,114 effective as of January 1, 2020. |
(3) |
Mr. Holdren’s base salary was increased to $712,631 effective as of January 1, 2020. |
(4) |
Ms. Digilio’s base salary was increased to $607,700 effective as of January 1, 2020. |
Threshold |
Target |
Maximum |
Actual | |||||||||||
Adjusted EBITDA (70% Weighting) |
$2,070M |
$2,435M |
$2,800M |
$2,416.5M (Below Target = 67 points) | ||||||||||
Free Cash Flow (10% Weighting) |
$1,614M |
$1,774M |
$1,951M |
$1,739M (Below Target = 8 points) | ||||||||||
Customer Satisfaction - Overall Service (10% Weighting) |
—% |
1% |
N/A |
2.94% (Above Target = 10 points) | ||||||||||
Customer Satisfaction - Net Promoter Score (10% Weighting) |
0.5% |
1.5% |
N/A |
4.49% (Above Target = 10 points) | ||||||||||
Plan Payout |
25% |
100% |
200% |
95 points + 5 points adjustment |
NAME |
TARGET (% OF SALARY) |
TARGET AWARD ($ VALUE) (1) |
ACTUAL AWARD ($ VALUE) |
|||||||||
Anthony Rodio |
200 |
% | 1,972,602 |
1,972,602 |
||||||||
Mark Frissora |
200 |
% | 1,430,769 |
1,359,231 |
||||||||
Eric Hession |
100 |
% | 812,596 |
902,596 |
||||||||
Thomas Jenkin |
75 |
% | 968,488 |
968,488 |
||||||||
Christopher Holdren |
75 |
% | 518,524 |
608,524 |
||||||||
Monica Digilio |
75 |
% | 442,500 |
530,500 |
||||||||
Timothy Donovan |
75 |
% | 294,231 |
294,231 |
||||||||
Les Ottolenghi |
75 |
% | 420,885 |
399,840 |
(1) Target award values are based on actual base salary earnings in 2019 that each executive earned while employed by the Company. |
PERFORMANCE- BASED STOCK UNIT AWARD (ADJUSTED EBITDAR) (2019-2021) (AT TARGET) ($) |
PERFORMANCE- BASED STOCK UNIT AWARD (rTSR) (2019-2021) (AT TARGET) ($) |
FAIR VALUE OF TIME-VESTED RESTRICTED STOCK UNITS GRANTED ($) |
||||||||||
Mr. Rodio |
— |
— |
— |
|||||||||
Mr. Frissora |
1,750,004 |
1,750,000 |
3,500,000 |
|||||||||
Mr. Hession |
407,506 |
407,507 |
815,003 |
|||||||||
Mr. Jenkin |
484,607 |
484,613 |
969,205 |
|||||||||
Mr. Holdren |
302,699 |
302,703 |
605,397 |
|||||||||
Ms. Digilio |
225,005 |
225,003 |
450,002 |
|||||||||
Mr. Donovan |
325,005 |
325,008 |
650,001 |
|||||||||
Mr. Ottolenghi |
271,308 |
271,305 |
542,616 |
PERFORMANCE- BASED STOCK UNIT AWARD (2018 - Tranche 1) (#) |
||||
Mr. Rodio |
— |
|||
Mr. Frissora |
102,624 |
|||
Mr. Hession |
20,525 |
|||
Mr. Jenkin |
27,855 |
|||
Mr. Holdren |
14,844 |
|||
Ms. Digilio |
— |
|||
Mr. Donovan |
19,059 |
|||
Mr. Ottolenghi |
14,661 |
NAMED EXECUTIVE OFFICER OR DIRECTOR |
OWNERSHIP GUIDELINE |
|||
Chief Executive Officer |
6X Base Salary |
|||
Other Named Executive Officers |
5X Base Salary |
|||
Non-employee Directors |
5X Annual Fee Retainer |
(A) NAME AND PRINCIPAL POSITION |
(B) YEAR |
(C) SALARY ($) |
(D) BONUS (1) ($) |
(E) STOCK AWARDS (2) ($) |
(F) OPTION AWARDS (2) ($) |
(G) NON-EQUITY INCENTIVE PLAN COMPENSATION (3) ($) |
(H) CHANGE IN PENSION VALUE AND NONQUALIFIED- DEFERRED COMPENSATION EARNINGS ($) |
(I) ALL OTHER COMPENSATION (4) ($) |
(J) TOTAL ($) |
|||||||||||||||||||||||||||||||||||
Anthony Rodio Chief Executive Officer |
2019 |
946,154 |
250,000 |
— |
— |
1,972,602 |
— |
32,476 |
3,201,232 |
|||||||||||||||||||||||||||||||||||
Mark Frissora |
2019 |
715,385 |
2,330,000 |
2,871,680 |
(5) |
— |
1,359,231 |
— |
11,669,577 |
18,945,873 |
||||||||||||||||||||||||||||||||||
Former President |
2018 |
2,000,000 |
2,330,000 |
4,666,680 |
1,111,786 |
(12) |
3,840,000 |
— |
332,729 |
14,281,195 |
||||||||||||||||||||||||||||||||||
and Chief Executive Officer |
2017 |
2,000,000 |
330,000 |
16,500,006 |
400,000 |
4,494,000 |
— |
224,187 |
23,948,193 |
|||||||||||||||||||||||||||||||||||
Eric Hession |
2019 |
812,596 |
634,373 |
1,549,115 |
(6) |
— |
902,596 |
— |
35,398 |
3,934,078 |
||||||||||||||||||||||||||||||||||
Executive Vice President, Chief Financial Officer |
2018 2017 |
735,438 721,541 |
942,706 96,248 |
933,336 3,329,651 |
— 27,025 |
610,000 779,037 |
— — |
28,132 23,994 |
3,249,612 4,977,496 |
|||||||||||||||||||||||||||||||||||
Thomas Jenkin |
2019 |
1,291,317 |
1,087,499 |
1,874,258 |
(7) |
— |
968,488 |
536,268 |
33,551 |
5,791,381 |
||||||||||||||||||||||||||||||||||
Global President of Destination Markets |
2018 2017 |
1,260,750 1,236,927 |
1,454,166 164,999 |
1,266,667 5,073,754 |
— 131,260 |
927,740 1,091,897 |
427,373 370,020 |
29,842 27,438 |
5,366,538 8,096,295 |
|||||||||||||||||||||||||||||||||||
Christopher Holdren Executive Vice President and Chief Marketing Officer |
2019 |
691,365 |
100,000 |
1,146,966 |
(8) |
— |
608,524 |
— |
33,369 |
2,580,224 |
||||||||||||||||||||||||||||||||||
Monica Digilio Executive Vice President and Chief Human Resources Officer |
2019 |
590,000 |
67,500 |
750,007 |
(9) |
— |
530,500 |
— |
32,045 |
1,970,052 |
||||||||||||||||||||||||||||||||||
Timothy Donovan |
2019 |
392,308 |
634,373 |
1,260,491 |
(10) |
— |
294,231 |
— |
2,642,447 |
5,223,850 |
||||||||||||||||||||||||||||||||||
Former Executive Vice President, General Counsel and Chief Legal, Risk and Security Officer |
2018 2017 |
838,041 721,541 |
1,338,669 96,248 |
866,679 2,959,693 |
— 75,757 |
610,000 579,037 |
— — |
31,946 24,135 |
3,685,335 4,456,411 |
|||||||||||||||||||||||||||||||||||
Les Ottolenghi |
2019 |
561,179 |
488,125 |
1,655,363 |
(11) |
— |
399,840 |
— |
2,088,162 |
5,192,669 |
||||||||||||||||||||||||||||||||||
Former Executive Vice President & Chief Information Officer |
2018 |
563,750 |
621,458 |
666,674 |
— |
355,015 |
— |
30,115 |
2,237,012 |
(1) |
For 2019, reflects the cash portion of the 2017 Annual Grant Award under the 2012 PIP that vested on March 10, 2019 and the 2016 Annual Grant Award, a service-vesting award, under the 2012 PIP that vested on March 23, 2019 for Messrs. Frissora, Hession, Jenkin, Donovan, and Ottolenghi. For 2019, also reflects a sign-on bonus awarded to Mr. Rodio as outlined in his employment agreement. The bonuses in this column are separate from the bonuses under column (G) for Non-Equity Incentive Plan Compensation. |
(2) |
Amounts in these columns reflect the grant date fair value of stock awards and option awards granted during the applicable year and were determined as required by Accounting Standards Codification (“ASC”) Topic 718. Assumptions used in the |
calculations of these amounts are set forth in Note 16 to the consolidated financial statements included in our 2019 Annual Report. With respect to fiscal 2019, the PSUs granted to our named executive officers represents the aggregate grant date fair value of the 2019 rTSR PSUs, the first tranche of the 2019 Adjusted EBITDAR PSUs and the second tranche of the 2018 Adjusted EBITDA PSUs. The 2018 Adjusted EBITDA PSUs and 2019 Adjusted EBITDAR PSUs are valued using the closing price of our common stock on the April 2, 2019 and March 28, 2019, respectively, with the PSU being valued at target. The grant date fair value of the 2019 rTSR PSUs is based on a Monte Carlo valuation model, which determines potential award-payout results by simulating future stock prices of Caesars and constituent companies of the S&P 500 index. Monte Carlo modeling assumptions included: stock price volatility (based on three-year historical volatility of daily stock prices) of 46.0% for Caesars and an average of 25.0% for the S&P 500 index; stock price correlation coefficient between Caesars and the S&P 500 index (based on three-year historical daily stock price changes) of 25.6%; risk-free interest rate of 2.18%; and starting TSR (for the 30-day period immediately preceding the beginning of the performance period) of 23.2% for Caesars and 11.1% for the S&P 500 index. The fair value of 2019 rTSR PSUs was determined to be $12.63, or 145.0% of the grant-date stock price of $8.71. The actual vesting of the PSUs will be between zero and 200% of the target number of PSUs. |
(3) |
Messrs. Rodio, Frissora, Hession, Jenkin, Donovan, Ottolenghi and Holdren and Ms. Digilio received 2019 bonuses pursuant to the Senior Executive Incentive Plan in the amounts of $1,972,602, $1,359,231, $902,596, $968,488, $294,231, $399,840, $608,524 and $530,500, respectively. Such award values were prorated based on actual base salary earnings in 2019 that each executive earned while employed by the Company. |
(4) |
All Other Compensation includes perquisites and personal benefits, which may include executive security, personal aircraft usage, legal fee reimbursements, financial planning and Company lodging, and includes other compensation, which may include items such as severance, health, life and disability insurance, and tax reimbursements based on taxable earnings for Company lodging and on premiums paid for life and disability insurance. |
2019 |
||||||||||||||||||||||||
NAME |
401(K) EMPLOYER MATCH ($) |
RELOCATION ($) |
ALLOCATED AMOUNT FOR AIRCRAFT USAGE ($) |
HEALTH BENEFITS ($) |
EXPERIENCE OUR BEST ($) |
SEVERANCE ($) |
||||||||||||||||||
Anthony Rodio |
8,400 |
4,475 |
— |
16,698 |
2,903 |
— |
||||||||||||||||||
Mark Frissora |
— |
— |
200,000 |
(a) |
15,981 |
5,414 |
11,448,182 |
(b) | ||||||||||||||||
Eric Hession |
8,400 |
— |
— |
23,264 |
3,734 |
— |
||||||||||||||||||
Thomas Jenkin |
5,700 |
— |
— |
26,742 |
1,109 |
— |
||||||||||||||||||
Christopher Holdren |
8,400 |
— |
— |
18,918 |
6,051 |
— |
||||||||||||||||||
Monica Digilio |
8,400 |
— |
— |
18,918 |
4,727 |
— |
||||||||||||||||||
Timothy Donovan |
— |
— |
— |
17,683 |
6,678 |
2,618,086 |
(c) | |||||||||||||||||
Les Ottolenghi |
— |
— |
— |
20,376 |
7,462 |
2,060,324 |
(d) |
(a) Mr. Frissora was allocated up to $200,000 for per fiscal year for personal use of Company aircraft, which is calculated based on the incremental cost to us of fuel, trip-related maintenance, crew travel expenses, on-board catering, landing fees, trip-related hangar/parking costs and other miscellaneous variable costs. Since our aircraft is used primarily for business travel, we do not include the fixed costs that do not change based on usage, such as pilots’ salaries, depreciation of the purchase costs of our aircraft and the cost of maintenance not specifically related to trips. The other named executive officers may also access Company aircraft for personal purposes at their own personal expense. |
(b) |
Consists of payments provided to Mr. Frissora in connection with his separation, including (i) $8,000,000 in cash severance payments, (ii) $1,423,310 related to those PSU tranches for which the fair value had not been reported in the Summary Compensation Table (with vesting of PSUs remaining subject to achievement of applicable targets and options generally exercisable for two years after vesting), (iii) $2,000,000 in accelerated vesting of cash awards, and (iv) $24,872 in medical and welfare benefits. The value for the PSU tranches is calculated based on target attainment of the goals and the closing price of our common stock of $9.36 as of the separation date of April 30, 2019. |
(c) |
Consists of payments provided to Mr. Donovan in connection with his separation, including (i) $1,275,000 in cash severance payments, (ii) $410,284 related to those PSU tranches for which the fair value had not been reported in the Summary Compensation Table (with the value for PSU tranches calculated based on target attainment of the goals and the closing price of our common stock of $9.13 as of the separation date of June 6, 2019), (iii) $900,000 in accelerated vesting of cash awards, and (iv) $32,802 in medical and welfare benefits. |
(d) |
Consists of payments provided to Mr. Ottolenghi in connection with his separation, including (i) $930,188 in cash severance payments, (ii) $200,012 related to those PSU tranches for which the fair value had not been reported in the Summary Compensation Table (with the value for PSU tranches calculated based on target attainment of the goals and the closing price of our common stock of $12.96 as of the separation date November 15, 2019), (iii) $900,000 in accelerated vesting of cash awards, and (iv) $30,124 in medical and welfare benefits. |
(5) |
The value of the 2019 Adjusted EBITDAR PSUs awarded to Mr. Frissora on the date of grant assuming the highest level of performance conditions will be achieved is $3,500,008, which is based on the maximum vesting of 401,838 PSUs multiplied by the closing price of our common stock on March 28, 2019 of $8.71. This maximum is inclusive of all three PSU tranches. The value of 2019 rTSR PSUs awarded to Mr. Frissora on the date of grant assuming the highest level of performance conditions will be achieved is $3,500,000, which is based on the maximum vesting of 277,118 rTSR PSUs multiplied by the Monte Carlo fair value of $12.63 determined on the date of the grant, as described more fully in footnote (2) above. |
(6) |
The value of the 2019 Adjusted EBITDAR PSUs awarded to Mr. Hession on the date of grant assuming the highest level of performance conditions will be achieved is $815,012, which is based on the maximum vesting of 93,572 PSUs multiplied by the closing price of our common stock on March 28, 2019 of $8.71. This maximum is inclusive of all three PSU tranches. The value of rTSR PSUs awarded to Mr. Hession on the date of grant assuming the highest level of performance conditions will be achieved is $815,014, which is based on the maximum vesting of 64,530 rTSR PSUs multiplied by the Monte Carlo fair value of $12.63 determined on the date of the grant, as described more fully in footnote (2) above. |
(7) |
The value of the 2019 Adjusted EBITDAR PSUs awarded to Mr. Jenkin on the date of grant assuming the highest level of performance conditions will be achieved is $969,214, which is based on the maximum vesting of 111,276 PSUs multiplied by the closing price of our common stock on March 28, 2019 of $8.71. This maximum is inclusive of all three PSU tranches. The value of rTSR PSUs awarded to Mr. Jenkin on the date of grant assuming the highest level of performance conditions will be achieved is $969,226, which is based on the maximum vesting of 76,740 rTSR PSUs multiplied by the Monte Carlo fair value of $12.63 determined on the date of the grant, as described more fully in footnote (2) above. |
(8) |
The value of the 2019 Adjusted EBITDAR PSUs awarded to Mr. Holdren on the date of grant assuming the highest level of performance conditions will be achieved is $605,398, which is based on the maximum vesting of 69,506 PSUs multiplied by the closing price of our common stock on March 28, 2019 of $8.71. This maximum is inclusive of all three PSU tranches. The value of rTSR PSUs awarded to Mr. Holdren on the date of grant assuming the highest level of performance conditions will be achieved is $605,406, which is based on the maximum vesting of 47,934 rTSR PSUs multiplied by the Monte Carlo fair value of $12.63 determined on the date of the grant, as described more fully in footnote (2) above. |
(9) |
The value of the 2019 Adjusted EBITDAR PSUs awarded to Ms. Digilio on the date of grant assuming the highest level of performance conditions will be achieved is $450,010, which is based on the maximum vesting of 51,666 PSUs multiplied by the closing price of our common stock on March 28, 2019 of $8.71. This maximum is inclusive of all three PSU tranches. The value of rTSR PSUs awarded to Ms. Digilio on the date of grant assuming the highest level of performance conditions will be achieved is $450,006, which is based on the maximum vesting of 35,630 rTSR PSUs multiplied by the Monte Carlo fair value of $12.63 determined on the date of the grant, as described more fully in footnote (2) above. |
(10) |
The value of the 2019 Adjusted EBITDAR PSUs awarded to Mr. Donovan on the date of grant assuming the highest level of performance conditions will be achieved is $650,010, which is based on the maximum vesting of 74,628 PSUs multiplied by the closing price of our common stock on March 28, 2019 of $8.71. This maximum is inclusive of all three PSU tranches. The value of rTSR PSUs awarded to Mr. Donovan on the date of grant assuming the highest level of performance conditions will be achieved is $650,016, which is based on the maximum vesting of 51,466 rTSR PSUs multiplied by the Monte Carlo fair value of $12.63 determined on the date of the grant, as described more fully in footnote (2) above. |
(11) |
The value of the 2019 Adjusted EBITDAR PSUs awarded to Mr. Ottolenghi on the date of grant assuming the highest level of performance conditions will be achieved is $542,616, which is based on the maximum vesting of 62,298 PSUs multiplied by the closing price of our common stock on March 28, 2019 of $8.71. This maximum is inclusive of all three PSU tranches. The value of rTSR PSUs awarded to Mr. Ottolenghi on the date of grant assuming the highest level of performance conditions will be achieved is $542,610, which is based on the maximum vesting of 42,962 rTSR PSUs multiplied by the Monte Carlo fair value of $12.63 determined on the date of the grant, as described more fully in footnote (2) above. Amounts includes $345,615 which reflects the incremental cost associated with the modification of Mr. Ottolenghi’s RSU awards in connection with his separation agreement. |
(12) |
Amount reflects the incremental cost associated with the modification of Mr. Frissora’s stock options in connection with his separation agreement. |
• | Accrued and unpaid base salary |
• | Unreimbursed business expenses |
• | Amounts or benefits due under benefit and equity plans in accordance with the terms thereof |
• | Cash severance equal to two times his base salary plus one times his target bonus paid in installments over 24 months; provided, that one-half times his base salary plus one times his target bonus paid in installments over 30 months; |
• | A bonus for the year of termination of employment, based on actual full-year performance, prorated to reflect service through the date of termination, paid when bonuses are payable generally to active employees |
• | Company-paid COBRA continuation and a subsidy, at the same levels in effect as of the date of termination, for continued disability and life insurance coverage, paid in installments over 24 months; and |
• | One year of additional vesting in respect of (i) Mr. Frissora’s CAC RSUs (which were converted into Company RSUs in connection with the merger with CAC), (ii) his award of RSUs granted on March 23, 2016, and (iii) any other equity awards granted by the Company or CAC to Mr. Frissora after July 5, 2016. |
• | payment of an annual base salary (which may be adjusted from time to time); |
• | participation in the Company’s annual incentive bonus program(s) applicable to the executive’s position; |
• | for Ms. Digilio, a one-time bonus payment of $250,000 for 2018; |
• | for Messrs. Donovan and Jenkin, an award of stock options under the applicable equity incentive plan and, for Messrs. Ottolenghi and Holdren and Ms. Digilio, participation in the Company’s LTI program at 150% of their base salary; |
• | for Mr. Holdren and Ms. Digilio, one-time sign-on awards, payable in cash or equity (respectively), equal to $50,000 and $442,500 (respectively) based on certain conditions; |
• | for Mr. Donovan, reimbursement of up to $80,000 for legal fees; and |
• | provisions relating to severance payments and benefits upon certain terminations of employment, as described further below. |
ESTIMATED FUTURE PAYOUTS UNDER NON-EQUITY INCENTIVE PLAN AWARDS (1) |
ESTIMATED FUTURE PAYOUTS UNDER EQUITY INCENTIVE PLAN AWARDS |
ALL OTHER STOCK AWARDS: SHARES OF STOCK OR UNITS (#) |
GRANT DATE FAIR VALUE OF STOCK AND OPTION AWARDS (2) ($) |
|||||||||||||||||||||||||||||||
NAME |
GRANT DATE |
THRESHOLD ($) |
TARGET ($) |
MAXIMUM ($) |
THRESHOLD (#) |
TARGET (#) |
MAXIMUM (#) |
|||||||||||||||||||||||||||
Anthony Rodio |
NA |
276,164 |
1,972,602 |
3,945,204 |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||
Mark Frissora (7) |
NA 3/28/2019 (3) 4/2/2019 (4) 3/28/2019 (5) 3/28/2019 (6) |
200,308 — — — — |
1,430,769 — — — — |
2,861,539 — — — — |
— — 27,007 16,744 34,640 |
— — 108,025 66,973 138,559 |
— — 216,050 133,946 277,118 |
— 401,837 — — — |
— 3,500,000 953,861 583,335 1,750,000 |
|||||||||||||||||||||||||
Eric Hession |
NA 3/28/2019 (3) 4/2/2019 (4) 3/28/2019 (5) 3/28/2019 (6) |
113,763 — — — — |
812,596 — — — — |
1,625,192 — — — — |
— — 5,402 3,899 8,067 |
— — 21,605 15,595 32,265 |
— — 43,210 31,190 64,530 |
— 93,571 — — — |
— 815,003 190,772 135,832 407,507 |
|||||||||||||||||||||||||
Thomas Jenkin |
NA 3/28/2019 (3) 4/2/2019 (4) 3/28/2019 (5) 3/28/2019 (6) |
135,588 — — — — |
968,488 — — — — |
1,936,975 — — — — |
— — 7,331 4,637 9,593 |
— — 29,321 18,546 38,370 |
— — 58,642 37,092 76,740 |
— 111,275 — — — |
— 969,205 258,904 161,536 484,613 |
|||||||||||||||||||||||||
Timothy Donovan |
NA 3/28/2019 (3) 4/2/2019 (4) 3/28/2019 (5) 3/28/2019 (6) |
41,192 — — — — |
294,231 — — — — |
588,461 — — — — |
— — 5,016 3,110 6,434 |
— — 20,062 12,438 25,733 |
— — 40,124 24,876 51,466 |
— 74,627 — — — |
— 650,001 177,147 108,335 325,008 |
|||||||||||||||||||||||||
Les Ottolenghi |
NA 3/28/2019 (3) 4/2/2019 (4) 3/28/2019 (5) 3/28/2019 (6) 11/15/2019 (8) |
58,924 — — — — — |
420,885 — — — — — |
841,769 — — — — — |
— — 3,858 2,596 5,371 — |
— — 15,432 10,383 21,481 — |
— — 30,864 20,766 42,962 — |
— 62,298 — — — 181,787 |
— 542,616 136,265 90,436 271,305 345,615 |
|||||||||||||||||||||||||
Christopher Holdren |
NA 3/28/2019 (3) 4/2/2019 (4) 3/28/2019 (5) 3/28/2019 (6) |
72,593 — — — — |
518,524 — — — — |
1,037,048 — — — — |
— — 3,907 2,896 5,992 |
— — 15,625 11,584 23,967 |
— — 31,250 23,168 47,934 |
— 69,506 — — — |
— 605,397 137,969 100,897 302,703 |
|||||||||||||||||||||||||
Monica Digilio |
NA 3/28/2019 (3) 3/28/2019 (5) 3/28/2019 (6) |
61,950 — — — |
442,500 — — — |
885,000 — — — |
— — 2,153 4,454 |
— — 8,611 17,815 |
— — 17,222 35,630 |
— 51,665 — — |
— 450,002 75,002 225,003 |
(1) |
Represents potential threshold, target and maximum incentive compensation for 2019 under our Bonus Plan. The threshold, target, and maximum payouts are calculated by applying the percentage payouts to each named executive officer’s base salary. Actual target and maximum payouts are determined by Adjusted EBITDA performance, Free Cash Flow, and customer satisfaction results under our Bonus Plan, as the means by which the Compensation Committee exercises its negative discretion under the Senior Executive Incentive Plan, described more fully under the section “-Compensation Discussion and Analysis-Elements of Executive Compensation and Benefits for 2019-Cash Incentive Payments-Senior Executive Incentive Plan.” |
(2) |
The figures in this column reflect the grant date fair value of stock awards granted during the year in accordance with ASC Topic 718. Assumptions used in the calculations of these amounts are set forth in Note 16 to the consolidated financial statements included in our 2019 Annual Report. |
(3) |
Reflects RSUs granted under the 2017 PIP as described under “-Compensation Discussion and Analysis-Elements of Executive Compensation and Benefits for 2019-Equity Awards-Annual Awards Update.” |
(4) |
Reflects the second tranche of the 2018 EBITDAR PSUs granted under the 2017 PIP for which the performance goals were established in 2019 as described under “-Compensation Discussion and Analysis-Elements of Executive Compensation and Benefits for 2019-Equity Awards-Achievement of 2018 PSU Awards.” The fair value shown in the table above is based on the closing price of our Common Stock on April 2, 2019. |
(5) |
Reflects the first tranche of the 2019 EBITDAR PSUs granted under the 2017 PIP as described under “-Compensation Discussion and Analysis-Elements of Executive Compensation and Benefits for 2019-Equity Awards-Annual Awards Update” that vested on March 28, 2020 based on the performance period of January 1, 2019 to December 31, 2019. The fair value shown in the table above is based on the closing price of our Common Stock on March 28, 2019. |
(6) |
Reflects rTSR PSUs granted under the 2017 PIP in 2019 as described under “-Compensation Discussion and Analysis-Elements of Executive Compensation and Benefits for 2019-Equity Awards-Annual Awards Update.” |
(7) |
Pursuant to the Frissora Separation Agreement, Mr. Frissora’s 2019 equity awards were prorated based on the number of days in 2019 that Mr. Frissora was employed by the Company. |
(8) |
Reflects Mr. Ottolenghi’s RSU awards that were modified in connection with his separation agreement and the related incremental cost. |
OPTION AWARDS |
STOCK AWARDS |
|||||||||||||||||||||||||||||
NAME |
NUMBER OF SECURITIES UNDERLYING UNEXERCISED OPTIONS EXERCISABLE (#) |
EQUITY INCENTIVE PLAN AWARDS: NUMBER OF SECURITIES UNDERLYING UNEXERCISED UNEARNED OPTIONS (#) |
OPTION EXPIRATION DATE |
OPTION EXERCISE PRICE ($) |
NUMBER OF SHARES OR UNITS OF STOCK THAT HAVE NOT VESTED (#) |
MARKET VALUE OF SHARES OR UNITS OF STOCK THAT HAVE NOT VESTED ($) (1) |
EQUITY INCENTIVE PLAN AWARDS: NUMBER OF UNEARNED SHARES, UNITS OR OTHER RIGHTS THAT HAVE NOT VESTED (#) |
EQUITY INCENTIVE PLAN AWARDS: MARKET OR PAYOUT VALUE OF UNEARNED SHARES, UNITS OR OTHER RIGHTS THAT HAVE NOT VESTED ($) (1) |
||||||||||||||||||||||
Mark Frissora |
— — — — — — — — — |
200,000 (2) — — — — — — — — |
2/5/2025 — — — — — — — — |
9.45 — — — — — — — — |
— 102,624 (3) — — — — 20,919 (8) — — |
— 1,395,686 — — — — 284,498 — — |
— — 5,401 (4) 108,025 (5) 5,401 (6) 45,554 (7) — 1,100 (9) 44,038 (10) |
— — 73,454 1,469,140 73,454 619,534 — 14,960 598,917 |
||||||||||||||||||||||
Eric Hession |
15,107 22,116 3,125 20,000 26,250 — — — — — — — — — — — |
3,486 (11) 1,705 (11) — — — — — — — — — — — — — — |
7/25/2022 8/21/2022 6/28/2023 5/7/2024 5/29/2025 — — — — — — — — — — |
8.23 8.22 9.45 9.45 9.36 — — — — — — — — — — — |
— — — — — 130,065 (12) 43,211 (13) 20,525 (3) — — — 93,571 (14) — 14,816 (8) — — |
— — — — — 1,768,884 587,670 279,140 — — — 1,272,566 — 201,498 — — |
— — — — — — — — 1,080 (4) 21,605 (5) 1,080 (6) — 32,265 (7) — 779 (9) 31,191 (10) |
— — — — — — — — 14,688 293,828 14,688 — 438,804 — 10,594 424,198 |
OPTION AWARDS |
STOCK AWARDS |
|||||||||||||||||||||||||
NAME |
NUMBER OF SECURITIES UNDERLYING UNEXERCISED OPTIONS EXERCISABLE (#) |
EQUITY INCENTIVE PLAN AWARDS: NUMBER OF SECURITIES UNDERLYING UNEXERCISED UNEARNED OPTIONS (#) |
OPTION EXPIRATION DATE |
OPTION EXERCISE PRICE ($) |
NUMBER OF SHARES OR UNITS OF STOCK THAT HAVE NOT VESTED (#) |
MARKET VALUE OF SHARES OR UNITS OF STOCK THAT HAVE NOT VESTED ($) (1) |
EQUITY INCENTIVE PLAN AWARDS: NUMBER OF UNEARNED SHARES, UNITS OR OTHER RIGHTS THAT HAVE NOT VESTED (#) |
EQUITY INCENTIVE PLAN AWARDS: MARKET OR PAYOUT VALUE OF UNEARNED SHARES, UNITS OR OTHER RIGHTS THAT HAVE NOT VESTED ($) (1) |
||||||||||||||||||
Thomas Jenkin |
363,541 37,500 88,000 50,040 — — — — — — — — — — — |
35,947 (11) — — — — — — — — — — — — — — |
8/21/2022 6/28/2023 5/7/2024 5/29/2025 — — — — — — — — — — — |
8.22 9.45 9.45 9.36 — — — — — — — — — — — |
— — — — 198,194 (12) 58,643 (13) 27,855 (3) — — — 111,275 (14) — 17,619 (8) — — |
— — — — 2,695,438 797,545 378,828 — — — 1,513,340 — 239,618 — — |
— — — — — — — 1,466 (4) 29,321 (5) 1,466 (6) — 38,370 (7) — 927 (9) 37,092 (10) |
— — — — — — — 19,938 398,766 19,938 — 521,832 — 12,607 504,451 |
||||||||||||||||||
Timothy Donovan |
— |
9,737 (11) |
8/21/2022 |
8.22 |
— 19,059 (3) — — — — 11,817 (8) — — |
— 259,202 — — — — 160,711 — — |
— — 1,003 (4) 20,062 (5) 1,003 (6) 25,733 (7) — 621 (9) 24,876 (10) |
— — 13,641 272,843 13,641 349,969 — 8,446 338,314 |
||||||||||||||||||
Les Ottolenghi |
— |
— |
— |
— |
14,661 (3) — — — |
199,390 — — — |
— 771 (4) 15,433 (5) 771 (6) |
— 10,486 209,889 10,486 |
||||||||||||||||||
Christopher Holdren |
— |
— |
— |
— |
71,670 (15) 31,251 (13) 14,844 (3) — — — 69,506 (14) 11,005 (8) — — — |
974,712 425,014 201,878 — — — 945,282 149,668 — — — |
— — — 781 (4) 15,625 (5) 781 (6) — — 579 (9) 23,169 (10) 23,967 (7) |
— — — 10,622 212,500 10,622 — — 7,874 315,098 325,951 |
||||||||||||||||||
Monica Digilio |
— |
— |
— |
— |
28,366 (16) 51,665 (14) 8,181 (8) — — — |
385,778 702,644 111,262 — — — |
— — — 430 (9) 17,222 (10) 17,815 (7) |
— — — 5,848 234,219 242,284 |
(1) |
Market value is determined based on the closing price of our common stock on December 31, 2019 or $13.60 per share. |
(2) |
200,000 of the options vest based on the achievement of a $15.00 stock price target. |
(3) |
Represents PSUs granted April 2, 2018 with respect to which the performance goals have been attained and vested on April 2, 2020. |
(4) |
Represents the remaining 5% of the second tranche of the PSUs granted on April 2, 2018 which remain outstanding and are eligible to vest on April 2, 2021 based on the achievement of certain Company cumulative EBITDA goals. The number of PSUs shown represents the number of performance shares remaining in the second tranche that may be earned during the performance periods based on target performance. |
(5) |
Represents PSUs granted on April 2, 2018 which are eligible to vest on April 2, 2021 based on achievement of certain Company EBITDA goals. The number of PSUs shown represents the number of performance shares that may be earned during the performance period based on target performance. |
(6) |
Represents the remaining 5% of the first tranche of the PSUs granted on April 2, 2018 which remain outstanding and are eligible to vest on April 2, 2021 based on the achievement of certain Company cumulative EBITDA goals. The number of PSUs shown represents the number of performance shares remaining in the first tranche that may be earned during the performance periods based on target performance. |
(7) |
Represents PSUs granted on March 28, 2019 which are eligible to vest on March 28, 2022 based on achievement of certain Company rTSR goals. The number of PSUs shown represents the number of performance shares that may be earned during the performance period based on target performance. |
(8) |
Represents PSUs granted on March 28, 2019 with respect to which the performance goals have been attained and vested on March 28, 2020. |
(9) |
Represents the remaining 5% of the first tranche of the PSUs granted on March 28, 2019 which remain outstanding and are eligible to vest on March 28, 2022 based on the achievement of certain Company cumulative EBITDA goals. The number of PSUs shown represents the number of performance shares remaining in the first tranche that may be earned during the performance periods based on target performance. |
(10) |
Represents PSUs granted on March 28, 2019, 50% of which are eligible to vest on March 28, 2021 and March 28, 2022, respectively, based on achievement of certain Company EBITDA goals. The number of PSUs shown represents the number of performance shares that may be earned during the performance periods based on target performance. |
(11) |
Performance options vest if the simple average of the last reported sale prices per share of the option shares for the 30 calendar day period ending on the day immediately preceding the date of determination is equal to or greater than $35. |
(12) |
One-half of RSUs vest on October 6, 2020 and 2021, respectively. |
(13) |
One-half of RSUs vest on April 2, 2020 and 2021, respectively. |
(14) |
33% of RSUs vest on March 28 of each 2020, 2021 and 2022, respectively. |
(15) |
50% of RSUs vest on November 1, 2020 and 2021, respectively. |
(16) |
50% of RSUs vest on September 24, 2020 and 2021, respectively. |
OPTION AWARDS |
STOCK AWARDS |
|||||||||||||||
NAME |
NUMBER OF SHARES EXERCISED (#) |
VALUE REALIZED ON EXERCISE (1) ($) |
NUMBER OF SHARES VESTING (#) |
VALUE REALIZED ON VESTING (2) ($) |
||||||||||||
Anthony Rodio |
— |
— |
— |
— |
||||||||||||
Mark Frissora |
800,000 |
9,208,000 |
1,859,834 |
17,180,312 |
||||||||||||
Eric Hession |
— |
— |
169,904 |
1,682,622 |
||||||||||||
Thomas Jenkin |
— |
— |
259,900 |
2,570,833 |
||||||||||||
Christopher Holdren |
— |
— |
66,303 |
711,595 |
||||||||||||
Monica Digilio |
— |
— |
14,183 |
166,367 |
||||||||||||
Timothy Donovan |
163,445 |
1,869,811 |
388,351 |
3,507,832 |
||||||||||||
Les Ottolenghi |
— |
— |
340,073 |
4,091,940 |
(1) |
Value represents the difference between the fair market value of our stock underlying the options at exercise and the exercise price of the option. |
(2) |
Value realized is calculated as the number of shares vested times the closing price of our common stock on the date vested. |
NAME |
PLAN |
EXECUTIVE CONTRIBUTIONS IN 2019 (1) ($) |
COMPANY’S CONTRIBUTIONS IN 2019 (1) ($) |
AGGREGATE EARNINGS IN 2019 (1) ($) |
AGGREGATE WITHDRAWALS/ DISTRIBUTIONS ($) |
AGGREGATE BALANCE AT DECEMBER 31, 2019 ($) |
||||||||||||||||||
Eric Hession |
Harrah’s Entertainment, Inc. Executive Supplemental Savings Plan II |
— |
— |
41,425 |
— |
190,849 |
||||||||||||||||||
Thomas Jenkin |
Harrah’s Entertainment, Inc. Executive Deferred Compensation Plan |
— |
— |
1,588,967 |
— |
14,066,252 |
(1) |
The following deferred compensation contribution and earnings amount were reported in the 2019 Summary Compensation Table. |
NAME |
CONTRIBUTIONS IN 2019 ($) |
ABOVE MARKET EARNINGS IN 2019 ($) (1) |
||||||
Eric Hession |
— |
— |
||||||
Thomas Jenkin |
— |
536,268 |
(1) |
All other earnings were at market rates from deferred compensation investments directed by the executive. |
NAME OF FUND |
2019 RATE OF RETURN |
|||
500 Index Trust B |
31.16 |
% | ||
Aggressive Growth Lifecycle |
24.84 |
% | ||
American International Trust |
22.40 |
% | ||
BlackRock Small Cap Index |
24.80 |
% | ||
Capital Appreciation Trust |
32.88 |
% | ||
Conservative Lifecycle |
13.89 |
% | ||
Diversified Bond |
13.00 |
% | ||
Equity-Income Trust |
26.47 |
% | ||
Growth Lifecycle |
21.88 |
% | ||
Inflation Managed |
8.64 |
% | ||
International Equity Index Trust B |
21.44 |
% | ||
Mid Cap Stock Trust |
34.63 |
% | ||
Mid Value Trust |
19.49 |
% | ||
Moderate Lifecycle |
17.57 |
% | ||
Money Market Trust |
1.97 |
% | ||
PSF Real Estate |
31.28 |
% | ||
Small Cap Stock Trust |
38.1 |
% | ||
Small Cap Value Trust |
26.62 |
% |
COMPENSATION |
VOLUNTARY TERMINATION ($) |
RETIREMENT ($) |
INVOLUNTARY NOT FOR CAUSE OR GOOD REASON TERMINATION ($) |
FOR CAUSE TERMINATION ($) |
INVOLUNTARY OR GOOD REASON TERMINATION (CHANGE IN CONTROL) ($) |
DISABILITY ($) |
DEATH ($) |
|||||||||||||||||||||
Severance Payment |
— |
— |
1,500,000 |
— |
3,000,000 |
— |
— |
|||||||||||||||||||||
Short-Term Incentive(5) |
— |
— |
1,972,602 |
— |
1,972,602 |
(8) |
— |
— |
||||||||||||||||||||
Accelerated Vesting of Stock and/or Cash Award (4) |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Benefits and Perquisites: |
||||||||||||||||||||||||||||
Post-retirement Health Care (1) |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Medical Benefits |
— |
— |
14,749 |
— |
14,749 |
14,749 |
— |
|||||||||||||||||||||
Life and Accident Insurance and Benefits (2) |
— |
— |
9,286 |
— |
9,286 |
9,286 |
3,500,000 |
|||||||||||||||||||||
Accrued Benefits Under Savings and Retirement Plan (3) |
8,400 |
8,400 |
8,400 |
8,400 |
8,400 |
8,400 |
8,400 |
|||||||||||||||||||||
Totals |
8,400 |
8,400 |
3,505,037 |
8,400 |
5,005,037 |
32,435 |
3,508,400 |
|||||||||||||||||||||
COMPENSATION |
VOLUNTARY TERMINATION ($) |
RETIREMENT ($) |
INVOLUNTARY NOT FOR CAUSE OR GOOD REASON TERMINATION ($) |
FOR CAUSE TERMINATION ($) |
INVOLUNTARY OR GOOD REASON TERMINATION (CHANGE IN CONTROL) ($) |
DISABILITY ($) |
DEATH ($) |
|||||||||||||||||||||
Severance Payment |
— |
— |
1,222,500 |
— |
1,222,500 |
1,222,500 |
— |
|||||||||||||||||||||
Short-Term Incentive (5) |
— |
— |
900,000 |
— |
1,802,956 |
(9) |
900,000 |
900,000 |
||||||||||||||||||||
Accelerated Vesting of Stock and/or Cash Award (4) |
— |
— |
— |
— |
2,347,659 |
— |
— |
|||||||||||||||||||||
Benefits and Perquisites: |
||||||||||||||||||||||||||||
Post-retirement Health Care (1) |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Medical Benefits |
— |
— |
22,588 |
— |
22,588 |
— |
— |
|||||||||||||||||||||
Life and Accident Insurance and Benefits (2) |
— |
— |
8,740 |
— |
8,740 |
8,740 |
2,207,000 |
|||||||||||||||||||||
Accrued Benefits Under Savings and Retirement Plan (3) |
8,400 |
8,400 |
8,400 |
8,400 |
8,400 |
8,400 |
8,400 |
|||||||||||||||||||||
Totals |
8,400 |
8,400 |
2,162,228 |
8,400 |
5,412,843 |
2,139,640 |
(6) |
3,115,400 |
||||||||||||||||||||
COMPENSATION |
VOLUNTARY TERMINATION ($) |
RETIREMENT ($) |
INVOLUNTARY NOT FOR CAUSE OR GOOD REASON TERMINATION ($) |
FOR CAUSE TERMINATION ($) |
INVOLUNTARY OR GOOD REASON TERMINATION (CHANGE IN CONTROL) ($) |
DISABILITY ($) |
DEATH ($) |
|||||||||||||||||||||
Severance Payment |
— |
— |
1,938,404 |
— |
1,938,404 |
1,938,404 |
— |
|||||||||||||||||||||
Short-Term Incentive (5) |
— |
— |
1,868,488 |
(10) |
— |
1,868,488 |
(10) |
900,000 |
900,000 |
|||||||||||||||||||
Accelerated Vesting of Stock and/or Cash Award (4) |
— |
— |
— |
— |
2,791,849 |
— |
— |
|||||||||||||||||||||
Benefits and Perquisites: |
||||||||||||||||||||||||||||
Post-retirement Health Care (1) |
119,573 |
119,573 |
119,573 |
— |
119,573 |
119,573 |
— |
|||||||||||||||||||||
Medical Benefits |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Life and Accident Insurance and Benefits (2) |
— |
— |
13,957 |
— |
13,957 |
13,957 |
3,500,000 |
|||||||||||||||||||||
Accrued Benefits Under Savings and Retirement Plan (3) |
5,700 |
5,700 |
5,700 |
5,700 |
5,700 |
5,700 |
5,700 |
|||||||||||||||||||||
Totals |
125,273 |
125,273 |
3,946,122 |
5,700 |
6,737,971 |
2,977,634 |
(7) |
4,405,700 |
||||||||||||||||||||
COMPENSATION |
VOLUNTARY TERMINATION ($) |
RETIREMENT ($) |
INVOLUNTARY NOT FOR CAUSE OR GOOD REASON TERMINATION ($) |
FOR CAUSE TERMINATION ($) |
INVOLUNTARY OR GOOD REASON TERMINATION (CHANGE IN CONTROL) ($) |
DISABILITY ($) |
DEATH ($) |
|||||||||||||||||||||
Severance Payment |
— |
— |
1,037,813 |
— |
1,037,813 |
1,037,813 |
— |
|||||||||||||||||||||
Short-Term Incentive (5) |
— |
— |
800,000 |
— |
1,408,524 |
(11) |
800,000 |
800,000 |
||||||||||||||||||||
Accelerated Vesting of Stock and/or Cash Award (4) |
— |
— |
— |
— |
1,743,874 |
— |
— |
|||||||||||||||||||||
Benefits and Perquisites: |
||||||||||||||||||||||||||||
Post-retirement Health Care (1) |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Medical Benefits |
— |
— |
15,715 |
— |
15,715 |
15,715 |
— |
|||||||||||||||||||||
Life and Accident Insurance and Benefits (2) |
— |
— |
6,169 |
— |
6,169 |
6,169 |
2,076,000 |
|||||||||||||||||||||
Accrued Benefits Under Savings and Retirement Plan (3) |
8,400 |
8,400 |
8,400 |
8,400 |
8,400 |
8,400 |
8,400 |
|||||||||||||||||||||
Totals |
8,400 |
8,400 |
1,868,097 |
8,400 |
4,220,495 |
1,868,097 |
2,884,400 |
|||||||||||||||||||||
COMPENSATION |
VOLUNTARY TERMINATION ($) |
RETIREMENT ($) |
INVOLUNTARY NOT FOR CAUSE OR GOOD REASON TERMINATION ($) |
FOR CAUSE TERMINATION ($) |
INVOLUNTARY OR GOOD REASON TERMINATION (CHANGE IN CONTROL) ($) |
DISABILITY ($) |
DEATH ($) |
|||||||||||||||||||||
Severance Payment |
— |
— |
885,000 |
— |
885,000 |
885,000 |
||||||||||||||||||||||
Short-Term Incentive (5) |
— |
— |
432,500 |
— |
963,000 |
(12) |
432,500 |
432,500 |
||||||||||||||||||||
Accelerated Vesting of Stock and/or Cash Award (4) |
— |
— |
— |
— |
1,296,257 |
— |
— |
|||||||||||||||||||||
Benefits and Perquisites: |
||||||||||||||||||||||||||||
Post-retirement Health Care (1) |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Medical Benefits |
— |
— |
15,746 |
— |
15,746 |
15,746 |
— |
|||||||||||||||||||||
Life and Accident Insurance and Benefits (2) |
— |
— |
5,397 |
— |
5,397 |
5,397 |
1,770,000 |
|||||||||||||||||||||
Accrued Benefits Under Savings and Retirement Plan (3) |
8,400 |
8,400 |
8,400 |
8,400 |
8,400 |
8,400 |
8,400 |
|||||||||||||||||||||
Totals |
8,400 |
8,400 |
1,347,043 |
8,400 |
3,173,800 |
1,347,043 |
2,210,900 |
|||||||||||||||||||||
(1) |
Reflects the estimated present value of all future benefits under our health plans. |
(2) |
Reflects the estimated present value of the cost of coverage for life and accident insurance policies and the estimated amount of proceeds payable to the executive’s beneficiaries in the event of the executive’s death. |
(3) |
Reflects the employer match portion for the Company’s 401(k) Plan. |
(4) |
Represents the value associated with the vesting of all outstanding RSUs and PSUs from the 2019 Annual Grant as of December 31, 2019 valued at the closing price of the Company’s common stock as of December 31, 2019 ($13.60). |
(5) |
Represents the actual bonus payment for the year ended December 31, 2019. |
(6) |
Total disability amount for Mr. Hession excludes long-term disability insurance payments of $25,000 per month. |
(7) |
Total disability amount for Mr. Jenkin is reduced by long-term disability insurance payments of $25,000 per month, for 18 months. |
(8) |
Under the Merger Agreement with ERI, Mr. Rodio is eligible for a pro-rated bonus if he is terminated without cause or terminated for good reason in relation to the Change in Control. |
(9) |
Under the Merger Agreement with ERI, Mr. Hession is eligible for a pro-rated bonus if he is terminated without cause or terminated for good reason (in each case, as defined in Mr. Hession’s employment agreement) in relation to the Change in Control. $1,802,596 is comprised of the pro-rata bonus ($902,596) and a cash incentive under the 2017 PIP of $900,000. |
(10) |
Under Mr. Jenkin’s employment agreement, he is eligible for a pro-rated bonus if he is terminated without cause or terminated for good reason. $1,868,488 is comprised of the pro-rata bonus ($968,488) and a cash incentive under the 2017 PIP of $900,000. |
(11) |
Under the Merger Agreement with ERI, Mr. Holdren is eligible for a pro-rated bonus if he is terminated without cause or terminated for good reason (in each case, as defined in Mr. Holdren’s employment agreement) in relation to the Change in Control. $1,408,524 is comprised of the pro-rata bonus ($608,524) and a cash incentive under the 2017 PIP of $800,000. |
(12) |
Under the Merger Agreement with ERI, Ms. Digilio is eligible for a pro-rated bonus if she is terminated without cause or terminated for good reason (in each case, as defined in Ms. Digilio’s employment agreement) in relation to the Change in Control. $963,000 is comprised of the pro-rata bonus ($530,500) and a cash incentive under the 2017 PIP of $432,500. |
NAME |
NUMBER OF EBITDA PSUs (#) |
VALUE ($) |
||||||
Anthony Rodio |
— |
— |
||||||
Mark Frissora |
287,508 |
3,910,109 |
||||||
Eric Hession |
91,076 |
1,238,634 |
||||||
Thomas Jenkin |
115,746 |
1,574,146 |
||||||
Christopher Holdren |
66,784 |
908,262 |
||||||
Monica Digilio |
25,833 |
351,329 |
||||||
Timothy Donovan |
78,441 |
1,066,798 |
||||||
Les Ottolenghi |
31,636 |
430,250 |
NAME |
NUMBER OF STOCK OPTIONS (#) |
VALUE ($) |
||||||
Anthony Rodio |
— |
— |
||||||
Mark Frissora |
200,000 |
830,000 |
||||||
Eric Hession |
5,191 |
27,893 |
||||||
Thomas Jenkin |
35,947 |
193,395 |
||||||
Christopher Holdren |
— |
— |
||||||
Monica Digilio |
— |
— |
||||||
Timothy Donovan |
9,737 |
52,385 |
||||||
Les Ottolenghi |
— |
— |
NAME |
NUMBER OF TIME- BASED RSUs (#) |
NUMBER OF MARKET-BASED PSUs(#) |
AGGREGATE VALUE ($) |
|||||||||
Anthony Rodio |
— |
— |
— |
|||||||||
Mark Frissora |
— |
45,554 |
619,534 |
|||||||||
Eric Hession |
266,847 |
32,265 |
4,067,923 |
|||||||||
Thomas Jenkin |
368,112 |
38,370 |
5,528,155 |
|||||||||
Christopher Holdren |
172,427 |
23,967 |
2,670,958 |
|||||||||
Monica Digilio |
80,031 |
17,815 |
1,330,706 |
|||||||||
Timothy Donovan |
— |
25,733 |
349,969 |
|||||||||
Les Ottolenghi |
— |
— |
— |
COMPONENT |
PAYABLE TO |
ANNUAL AMOUNT ($) |
||||
Annual retainer |
Each non-employee Director |
100,000 |
||||
Audit Committee service |
Each Audit Committee member |
25,000 |
||||
Compensation Committee service |
Each Compensation Committee member |
15,000 |
||||
Governance & Corporate Responsibility Committee service |
Each Governance & Corporate Responsibility Committee member |
15,000 |
||||
Strategy & Finance Committee service |
Each Strategy & Finance Committee member |
25,000 |
||||
Transaction Committee service |
Each Transaction Committee member (non-chair) |
50.000 |
||||
Chairman service |
Chairman of the Board |
100,000 |
||||
Chair of Transaction Committee |
100,000 |
|||||
Chair of each other Board Committee |
15,000 |
|||||
Annual equity grant |
Chairman of the Board |
205,000 |
||||
Each other non-employee Director |
155,000 |
• | Chairman of the board or committee: $2,500 |
• | Member of the board or committee: $1,500 |
• | Chairman of the board or committee: $2,000 |
• | Member of the board or committee: $1,000 |
NAME |
FEES EARNED OR PAID IN CASH ($) |
STOCK AWARDS (1) |
ALL OTHER COMPENSATION ($) |
TOTAL ($) |
||||||||||||
Thomas Benninger |
215,000 |
155,006 |
436 |
370,442 |
||||||||||||
John Boushy (2) |
22,167 |
25,484 |
— |
47,651 |
||||||||||||
Juliana Chugg |
140,000 |
103,200 |
5,263 |
248,463 |
||||||||||||
Denise Clark |
162,083 |
103,200 |
4,003 |
269,286 |
||||||||||||
Keith Cozza (3) |
181,667 |
129,954 |
— |
311,621 |
||||||||||||
John Dionne |
155,000 |
155,006 |
243 |
310,249 |
||||||||||||
Matthew Ferko (2) |
25,333 |
25,484 |
— |
50,817 |
||||||||||||
James Hunt |
215,000 |
205,010 |
2,071 |
422,081 |
||||||||||||
Jan Jones Blackhurst (4) |
25,000 |
39,073 |
3,552 |
67,625 |
||||||||||||
Don Kornstein |
259,792 |
155,006 |
492 |
415,290 |
||||||||||||
Courtney Mather (3) |
181,667 |
129,954 |
1,168 |
312,789 |
||||||||||||
James Nelson (3) |
116,167 |
129,954 |
1,198 |
247,319 |
||||||||||||
David Sambur (5) |
52,472 |
— |
— |
52,472 |
||||||||||||
Richard Schifter (6) |
113,681 |
155,006 |
2,885 |
271,572 |
||||||||||||
Christopher Williams (2)(7) |
19,167 |
25,484 |
— |
44,651 |
(1) |
Includes (1) an equity grant in consideration of Board service for the period of January through February 2019 with the number of shares granted determined by dividing the grant date value of the award ($25,479) by $8.97, the closing price of the Company’s common stock on March 1, 2019, the date of grant, rounded up to the nearest whole share for Messrs. Boushy, Ferko and Williams; (2) an equity grant in consideration of Board service for the period of March through June of 2019 with the number of shares granted determined by dividing the grant date value of the award ($49,260) by $9.13, the closing price of the Company’s common stock on June 6, 2019, the date of grant, rounded up to the nearest whole share for Messrs. Cozza, Mather and Nelson; (3) an equity grant for Ms. Blackhurst in consideration of Board service for the period of October through December of 2019 with the number of shares granted determined by dividing the grant date value of the award ($39,068) by $11.73, the closing price of the Company’s common stock on October 1, 2019, the date of grant, rounded up to the nearest whole share; and (4) the annual equity grant for 2019 with the number of shares granted determined by dividing the following grant date values of the awards by $12.09, the closing price of the Company’s common stock on July 2, 2019, the date of grant, rounded up to the nearest whole share: $205,000 for Mr. Hunt, $155,000 each for Messrs. Benninger, Dionne, Kornstein and Schifter, and $103,192 each for Mses. Chugg and Clark, and $80,685 for Messrs. Cozza, Mather and Nelson. As of December 31, 2019, Ms. Blackhurst held 154,857 outstanding performance share units and stock options. None of the other members of our Board held unvested awards as of December 31, 2019. |
(2) |
Messrs. John Boushy, Matthew Ferko, and Christopher Williams resigned from the Board effective March 1, 2019. |
(3) |
Messrs. Keith Cozza, Courtney Mather, and James Nelson were appointed to the Board on March 1, 2019. |
(4) |
Ms. Jones Blackhurst was appointed to the Board to fill the vacancy resulting from Mr. Schifter’s resignation, effective as of September 5, 2019. Ms. Blackhurst continued her role as Executive Vice President, Public Policy & Corporate Responsibility of the Company until October 1, 2019, at which time her employment with the Company ceased. In addition to the compensation received by Ms. Jones Blackhurst as a member of the Board, she also received $2,928,271, which included $1,296,880, consisting of (i) $665,738 in cash severance payments, (ii) $282,161 related to PSUs granted during 2019 (with the value for the PSUs calculated based on target attainment of the goals and the closing price of our common stock of $11.66 as of her last day of employment at the Company on September 30, 2019. This includes only the acceleration of those equity awards for which the performance goals had not been established and such the grant date fair value was not determined during her active employment.), (iv) $250,000 in accelerated vesting of cash awards, and (v) $98,981 in estimated lifetime medical and welfare benefits, in each case, pursuant to her Separation and General Release Agreement with the Company. |
(5) |
Mr. Sambur is an employee of Apollo (as defined in this Amendment). Pursuant to Apollo Management Group’s internal policies, Mr. Sambur assigned the right to receive compensation as a director in favor of an affiliate designated by Apollo. Mr. Sambur resigned from the Board effective April 4, 2019. |
(6) |
Mr. Schifter resigned from the Board effective September 5, 2019. |
(7) |
Mr. Williams had a total of 14,453 options on March 1, 2019 all of which were exercisable. |
• | As of November 14, 2017 (the “determination date”), our total U.S. and non-U.S. employee population consisted of 51,965 individuals. Employees who had no hours worked for pay periods ending within two weeks before the determination date were not considered in this analysis. |
• | We used this total number of employees to calculate the number of employees excludable under the “de minimis” exemption. As permitted by applicable SEC rules, in identifying the median employee, we used the “de minimis” exemption to exclude from our employee population approximately 2,523 employees, or 4.86% of our global workforce, as follows: |
COUNTRY OR TERRITORY |
NUMBER OF EMPLOYEES |
PERCENTAGE OF WORKFORCE |
||||||
United Kingdom |
1,499 |
2.88 |
% | |||||
Egypt |
431 |
0.83 |
% | |||||
South Africa |
585 |
1.13 |
% | |||||
Hong Kong |
8 |
0.02 |
% | |||||
Total |
2,523 |
4.86 |
% |
• | We used total cash compensation (which consisted of base salary, overtime pay, bonus, the Company’s contribution to health & welfare premiums, and the Company’s 401(k) match contribution) as our consistently applied compensation measure to identify the median employee. Compensation was annualized for permanent employees who joined Caesars in 2019. This was calculated using the same methodology that was used to calculate Mr. Rodio’s annualized total compensation in “Summary Compensation Table”. |
ITEM 12. |
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
• | Each person or group known to us to be the beneficial owner of more than 5% of our capital stock; |
• | Each of our named executive officers in the Summary Compensation Table; |
• | Each of our directors and director nominees; and |
• | All of our current directors and executive officers as a group. |
NAME OF BENEFICIAL OWNER |
SHARES OF COMMON STOCK BENEFICIALLY OWNED (#) |
PERCENTAGE OF CLASS (%) |
||||||
>5% Stockholders |
||||||||
Carl C. Icahn (1) |
119,975,363 |
17.39 |
% | |||||
BlackRock Inc. (2) |
64,824,871 |
9.47 |
% | |||||
Vanguard Group (3) |
49,896,557 |
7.29 |
% | |||||
Pacific Investment Management Co. (4) |
49,884,178 |
7.18 |
% | |||||
Canyon Capital Advisors LLC (5) |
45,454,371 |
6.65 |
% | |||||
Non-Employee Directors |
||||||||
Thomas Benninger (6) |
60,960 |
* |
||||||
Juliana Chugg |
32,273 |
* |
||||||
Denise Clark (7) |
16,780 |
* |
||||||
Keith Cozza (8) |
12,070 |
* |
||||||
John Dionne |
28,960 |
* |
||||||
James Hunt (9) |
38,303 |
* |
||||||
Jan Jones Blackhurst (10) |
403,877 |
* |
||||||
Don Kornstein |
116,373 |
* |
||||||
Courtney Mather (11) |
12,070 |
* |
||||||
James Nelson |
12,070 |
* |
||||||
Named Executive Officers |
||||||||
Anthony Rodio |
— |
* |
||||||
Timothy Donovan (12) |
738,569 |
* |
||||||
Mark Frissora (12)(14) |
2,828,188 |
* |
||||||
Eric Hession (13) |
505,541 |
* |
||||||
Christopher Holdren |
118,656 |
* |
||||||
Monica Digilio |
26,944 |
* |
||||||
Thomas Jenkin (13) |
1,123,023 |
* |
||||||
Les Ottolenghi (12) |
143,784 |
* |
||||||
All current directors and executive officers as a group (13)(15) |
3,155,506 |
* |
* | Indicates less than 1%. |
(1) |
Based on the Schedule 13D/A filed with the SEC August 8, 2019 by Carl C. Icahn (together with the Schedule 13D filed with the SEC by Mr. Icahn on February 19, 2019 and all subsequent amendments thereto, the “Schedule 13D”), Mr. Icahn and the following entities associated with Mr. Icahn may be deemed to beneficially own, in the aggregate, 119,975,363 shares of Company common stock (including 5,724,421 shares underlying the Convertible Bonds): High River Limited Partnership (“High River”), Hopper Investments LLC (“Hopper”), Barberry Corp. (“Barberry”), Icahn Partners Master Fund LP (“Icahn Master”), Icahn Offshore LP (“Icahn Offshore”), Icahn Partners LP (“Icahn Partners”), Icahn Onshore LP (“Icahn Onshore”), Icahn Capital LP (“Icahn Capital”), IPH GP LLC (“IPH”), Icahn Enterprises Holdings L.P. (“Icahn Enterprises Holdings”), Icahn Enterprises G.P. Inc. (“Icahn Enterprises GP”), Beckton Corp. (“Beckton”). |
(2) |
Based on the Schedule 13G/A filed with the SEC on February 7, 2020 by BlackRock Inc. (“BlackRock”), BlackRock Inc. beneficially owns an aggregate of 64,824,871 shares of Company common stock which includes 61,973,017 as to which BlackRock has sole voting power, 64,212,444 as to which BlackRock has sole dispositive voting power and 612,427 shares underlying the Convertible Bonds. The principal business address of BlackRock, Inc. is 55 East 52 nd Street, New York, New York 10055. |
(3) |
Based on the Schedule 13G filed with the SEC on February 10, 2020 by The Vanguard Group (“Vanguard”), Vanguard beneficially owns an aggregate of 49,896,557 shares of Company common stock which includes 286,480 shares as to which Vanguard has sole voting power, 89,950 shares as to which Vanguard has shared voting power, 49,589,624 shares as to which Vanguard has sole dispositive power and 306,933 shares as to which Vanguard has shared dispositive power. The principal business address of Vanguard is 100 Vanguard Blvd., Malvern, Pennsylvania 19355. |
(4) |
Based on the Schedule 13G filed with the SEC on February 13, 2020 by Pacific Investment Management Company LLC (“Pacific”), Pacific has sole voting and dispositive power over 49,872,473 shares. Pacific holds 38,655,280 shares of common stock and 11,198,898 shares underlying the Convertible Bonds. The principal business address of Pacific is 650 Newport Center Drive, Newport Beach, California 92660. |
(5) |
Based on the Schedule 13G/A filed with the SEC on February 14, 2020 by Canyon Capital Advisors, LLC, Canyon Capital Advisors, LLC has sole voting and dispositive power over such shares and Mitchell R. Julis and Joshua S. Friedman share voting and dispositive power over such shares. The principal business address of Canyon Capital Advisors, LLC is 2000 Avenue of the Stars, 11th Floor, Los Angeles, California 90067. |
(6) |
Represents shares of Caesars common stock owned directly by Mr. Benninger and indirectly by Mr. Benninger through the Thomas M. Benninger Revocable Trust. |
(7) |
Includes 8,536 shares of Caesars common stock awarded in 2019 with respect to which Ms. Clark has elected to defer receipt until her separation from service on the Caesars Board under the Caesars Entertainment Corporation Outside Director Deferred Compensation Plan. |
(8) |
Includes 12,070 shares of Caesars common stock awarded in 2019 with respect to which Mr. Cozza has elected to defer receipt until his separation from service on the Caesars Board under the Caesars Entertainment Corporation Outside Director Deferred Compensation Plan. |
(9) |
Includes 12,379 shares of Caesars common stock awarded in 2019 with respect to which Mr. Hunt has elected to defer receipt until his separation from service on the Caesars Board under the Caesars Entertainment Corporation Outside Director Deferred Compensation Plan. |
(10) |
Includes132,711 stock options that are exercisable; Ms. Jones Blackhurst was appointed to the Caesars Board effective September 5, 2019 and commenced service on October 2, 2019. |
(11) |
Includes 12,070 shares of Caesars common stock awarded in 2019 with respect to which Mr. Mather has elected to defer receipt until his separation from service on the Caesars Board under the Caesars Entertainment Corporation Outside Director Deferred Compensation Plan. |
(12) |
Mr. Donovan resigned from the Company effective June 6, 2019; Mr. Frissora resigned from the Company effective April 30, 2019; and Mr. Ottolenghi resigned effective November 15, 2019. |
(13) |
Includes common stock that may be acquired within 60 days of April 10, 2020 pursuant to outstanding stock options: Mr. Hession, 86,598 shares; Mr. Jenkin, 539,081; and 774,921 shares for all directors and executive officers as a group. |
(14) |
Includes 1,039,089 shares directly held in a trust and 1,900 shares held by Mr. Frissora’s daughter, of which Mr. Frissora disclaims beneficial ownership as of his last day of employment April 30, 2019. |
(15) |
Unless otherwise specified, the address of each of our directors and named executive officers is c/o Caesars Entertainment Corporation, One Caesars Palace Drive, Las Vegas, Nevada 89109. |
ITEM 13. |
Certain Relationships and Related Transactions, and Director Independence |
• | Compensation to an executive officer or director that is reported in the Company’s public filings and has been approved or recommended to the Board for approval by the Compensation Committee; |
• | Transactions where the interest of the related party arises only from (a) the related party’s position as a director on the board of another corporation that is a party to the transaction; (b) direct or indirect ownership by the related party and all other related parties, in the aggregate, of less than 5% of the another person (other than a partnership) which is a party to the transaction; or (c) the related party’s position as a partner in a partnership in which all related parties, in the aggregate, have an interest of less than 5% and the related party is not the general partner of and does not have another position in the partnership; |
• | Transactions involving services as a bank depository of funds, transfer agent, registrar, trustee under a trust indenture or similar services; |
• | Any transaction where the related party’s interest arises solely from the ownership of any class of the Company’s securities and all holders of that class of the Company’s securities receive the same benefit on a pro rata basis; and |
• | Any transaction involving a related party where the rates or charges involved are determined by competitive bids. |
ITEM 14. |
Principal Accounting Fees and Services |
(IN THOUSANDS) |
2019 ($) |
2018 ($) |
||||||
Audit Fees (1) |
10,632.8 |
14,037.9 |
||||||
Audit-Related Fees (2) |
986.9 |
860.7 |
||||||
Tax Fees (3) |
134.3 |
414.4 |
||||||
All Other Fees (4) |
— |
165.6 |
||||||
Total |
11,754 |
15,478.6 |
||||||
(1) | Audit Fees include: |
• | Audit of the Company’s annual financial statements, including the audits of the various subsidiaries’ financial statements, including those of gaming operations as required by the regulations of the respective jurisdictions; |
• | Sarbanes-Oxley Act, Section 404 attestation services; |
• | Reviews of the Company’s quarterly financial statements; |
• | Consultations related to accounting and reporting standards; |
• | Consents and other services related to SEC matters and debt offerings; and |
• | Related out-of-pocket expenses. |
(2) | Audit-Related Fees include: |
• | Quarterly revenue and compliance audits performed at certain of our properties as required by state gaming regulations; |
• | Agreed-upon procedures engagements; and |
• | Related out-of-pocket expenses. |
(3) | Tax Fees include: |
• | Fees for tax compliance services totaled $0 and $5,000 in 2019 and 2018, respectively. Tax compliance services are services rendered based upon facts already in existence or transactions that have already occurred to document, compute, and obtain government approval for amounts to be included in tax filings and consisted of: |
i. | Foreign income tax return assistance; |
ii. | Requests for technical advice from taxing authorities; and |
iii. | Assistance with tax audits and appeals. |
• | Fees for tax-planning and advice services totaled $134,000 and $320,000 in 2019 and 2018, respectively. Tax-planning and advice are services rendered with respect to proposed transactions or that alter a transaction to obtain a particular tax result. Such services consisted of: |
i. | Tax advice related to applicability of repairs and maintenance deductions; |
ii. | Tax advice related to review of tax provision software processes; |
iii. | Tax advice related to applicability of repairs and maintenance deductions; |
iv. | Tax advice related to research and development activities and expenditures related to IRC Section 41; |
v. | Tax advice related to cost segregation services; |
vi. | Tax advice related to transfer pricing; and |
vii. | Tax advice related to an intragroup restructuring. |
• | Ratio of Tax planning and Advice Fees to Audit Fees, Audit-Related Fees, and Tax Compliance Fees: |
○ |
2019 0.013:1 |
○ |
2018 0.021:1 |
(4) | All Other Fees include: |
• | Fees for advice related to our enterprise risk management assessment and other general policies and procedures. |
1. | the service is not an audit, review, or other attest service; |
2. | the estimated fees for such services to be provided under this provision do not exceed a defined amount of total fees paid to the independent auditor in a given fiscal year; |
3. | such services were not recognized at the time of the engagement to be non-audit services; and |
4. | such services are promptly brought to the attention of the Audit Committee and approved by the Audit Committee or its designee. |
ITEM 15. |
Exhibits, Financial Statement Schedules |
1. | Financial Statements. |
2. | Financial Statement Schedules. |
3. | Exhibits |
Incorporated by Reference |
||||||||||||||||||||||||
Exhibit Number |
Exhibit Description |
Filed Herewith |
Form |
Period Ending |
Exhibit |
Filing Date |
||||||||||||||||||
2.1 |
— |
8-K |
— |
2.1 |
7/11/2016 |
|||||||||||||||||||
2.2 |
— |
8-K |
— |
2.1 |
2/21/2017 |
|||||||||||||||||||
2.3 |
— |
S-4/A |
— |
2.6 |
6/5/2017 |
|||||||||||||||||||
2.4 |
— |
8-K |
— |
2.1 |
7/12/2018 |
|||||||||||||||||||
2.5 |
— |
8-K |
— |
2.2 |
7/12/2018 |
|||||||||||||||||||
2.6 |
— |
8-K |
— |
2.1 |
6/25/2019 |
|||||||||||||||||||
2.7 |
— |
8-K |
— |
2.1 |
8/16/2019 |
|||||||||||||||||||
3.1 |
— |
10-K |
12/31/2011 |
3.7 |
3/15/2012 |
|||||||||||||||||||
3.2 |
— |
S-8 |
— |
4.2 |
10/6/2017 |
|||||||||||||||||||
3.3 |
— |
S-8 |
— |
4.3 |
10/6/2017 |
|||||||||||||||||||
3.4 |
— |
S-8 |
— |
4.4 |
10/6/2017 |
|||||||||||||||||||
3.5 |
— |
10-Q |
— |
3.1 |
5/2/2019 |
|||||||||||||||||||
3.6 |
— |
8-K |
— |
3.1 |
7/2/2019 |
|||||||||||||||||||
3.7 |
— |
8-K |
— |
3.2 |
7/2/2019 |
|||||||||||||||||||
4.1 |
— |
8-K |
— |
4.1 |
10/13/2017 |
Incorporated by Reference |
||||||||||||||||||||||||
Exhibit Number |
Exhibit Description |
Filed Herewith |
Form |
Period Ending |
Exhibit |
Filing Date |
||||||||||||||||||
4.2 |
— |
8-K |
— |
4.1 |
10/16/2017 |
|||||||||||||||||||
4.3 |
— |
8-K |
— |
4.1 |
12/22/2017 |
|||||||||||||||||||
4.4 |
— |
8-K |
— |
4.1 |
11/29/2019 |
|||||||||||||||||||
10.1 |
— |
8-K |
— |
10.1 |
12/22/2017 |
|||||||||||||||||||
10.2 |
— |
8-K |
— |
10.1 |
10/16/2017 |
|||||||||||||||||||
10.3 |
— |
8-K |
— |
10.19 |
10/13/2017 |
|||||||||||||||||||
†10.4 |
— |
10-Q |
6/30/2007 |
10.69 |
8/9/2007 |
|||||||||||||||||||
†10.5 |
— |
10-Q |
6/30/2007 |
10.70 |
8/9/2007 |
|||||||||||||||||||
†10.6 |
— |
10-Q |
6/30/2007 |
10.71 |
8/9/2007 |
|||||||||||||||||||
†10.7 |
— |
10-Q |
6/30/2007 |
10.72 |
8/9/2007 |
|||||||||||||||||||
†10.8 |
— |
10-Q |
6/30/2007 |
10.73 |
8/9/2007 |
|||||||||||||||||||
†10.9 |
— |
8-K |
— |
10.2 |
2/13/2009 |
|||||||||||||||||||
†10.10 |
— |
10-K |
12/31/2014 |
10.48 |
3/16/2015 |
|||||||||||||||||||
†10.11 |
— |
8-K |
— |
10.20 |
10/13/2017 |
|||||||||||||||||||
10.12 |
— |
8-K |
— |
10.1 |
10/13/2017 |
|||||||||||||||||||
10.13 |
— |
8-K |
— |
10.1 |
12/26/2018 |
Incorporated by Reference |
||||||||||||||||||||||||
Exhibit Number |
Exhibit Description |
Filed Herewith |
Form |
Period Ending |
Exhibit |
Filing Date |
||||||||||||||||||
10.14 |
— |
8-K |
— |
10.2 |
10/13/2017 |
|||||||||||||||||||
**10.15 |
— |
8-K |
— |
10.2 |
12/26/2018 |
|||||||||||||||||||
10.16 |
— |
8-K |
— |
10.3 |
10/13/2017 |
|||||||||||||||||||
**10.17 |
— |
8-K |
— |
10.3 |
12/26/2018 |
|||||||||||||||||||
10.18 |
— |
8-K |
— |
10.4 |
10/13/2017 |
|||||||||||||||||||
10.19 |
— |
8-K |
— |
10.5 |
10/13/2017 |
|||||||||||||||||||
10.20 |
— |
8-K |
— |
10.6 |
10/13/2017 |
|||||||||||||||||||
10.21 |
— |
8-K |
— |
10.5 |
12/26/2018 |
|||||||||||||||||||
10.22 |
— |
8-K |
— |
10.6 |
12/26/2018 |
|||||||||||||||||||
10.23 |
— |
8-K |
— |
10.7 |
10/13/2017 |
|||||||||||||||||||
10.24 |
— |
8-K |
— |
10.8 |
10/13/2017 |
Incorporated by Reference |
||||||||||||||||||||||||
Exhibit Number |
Exhibit Description |
Filed Herewith |
Form |
Period Ending |
Exhibit |
Filing Date |
||||||||||||||||||
10.25 |
— |
8-K |
— |
10.7 |
12/26/2018 |
|||||||||||||||||||
10.26 |
— |
8-K |
— |
10.9 |
10/13/2017 |
|||||||||||||||||||
10.27 |
— |
8-K |
— |
10.8 |
12/26/2018 |
|||||||||||||||||||
10.28 |
— |
8-K |
— |
10.10 |
10/13/2017 |
|||||||||||||||||||
10.29 |
— |
8-K |
— |
10.11 |
10/13/2017 |
|||||||||||||||||||
10.30 |
— |
8-K |
— |
10.1 |
4/16/2018 |
|||||||||||||||||||
10.31 |
— |
8-K |
— |
10.12 |
10/13/2017 |
|||||||||||||||||||
10.32 |
— |
10-Q |
6/30/2018 |
10.2 |
8/1/2018 |
|||||||||||||||||||
*10.33 |
— |
10-Q |
6/30/2018 |
10.3 |
8/1/2018 |
|||||||||||||||||||
10.34 |
— |
10-Q |
6/30/2018 |
10.4 |
8/1/2018 |
|||||||||||||||||||
†10.35 |
— |
8-K |
— |
10.13 |
10/13/2017 |
|||||||||||||||||||
*10.36 |
— |
10-K |
12/31/2017 |
10.42 |
3/8/2018 |
Incorporated by Reference |
||||||||||||||||||||||||
Exhibit Number |
Exhibit Description |
Filed Herewith |
Form |
Period Ending |
Exhibit |
Filing Date |
||||||||||||||||||
*10.37 |
— |
10-K |
12/31/2017 |
10.43 |
3/8/2018 |
|||||||||||||||||||
*10.38 |
— |
10-K |
12/31/2017 |
10.44 |
3/8/2018 |
|||||||||||||||||||
10.39 |
— |
8-K |
— |
10.4 |
12/26/2018 |
|||||||||||||||||||
*10.40 |
— |
10-K |
12/31/2017 |
10.45 |
3/8/2018 |
|||||||||||||||||||
*10.41 |
— |
10-K |
12/31/2017 |
10.46 |
3/8/2018 |
|||||||||||||||||||
*10.42 |
— |
10-K |
12/31/2017 |
10.47 |
3/8/2018 |
|||||||||||||||||||
*10.43 |
— |
10-K |
12/31/2017 |
10.48 |
3/8/2018 |
|||||||||||||||||||
*10.44 |
— |
10-K |
12/31/2017 |
10.49 |
3/8/2018 |
|||||||||||||||||||
*10.45 |
— |
10-K |
12/31/2017 |
10.50 |
3/8/2018 |
|||||||||||||||||||
10.46 |
— |
8-K |
— |
99.1 |
8/17/2016 |
|||||||||||||||||||
*10.47 |
— |
10-Q |
9/30/2019 |
10.1 |
11/5/2019 |
|||||||||||||||||||
*10.48 |
— |
10-Q |
9/30/2019 |
10.2 |
11/5/2019 |
|||||||||||||||||||
10.49 |
— |
10-Q |
9/30/2019 |
10.3 |
11/5/2019 |
|||||||||||||||||||
10.50 |
— |
8-K |
— |
10.1 |
4/6/2020 |
Incorporated by Reference |
||||||||||||||||||||||||
Exhibit Number |
Exhibit Description |
Filed Herewith |
Form |
Period Ending |
Exhibit |
Filing Date |
||||||||||||||||||
10.51 |
— |
8-K |
— |
10.2 |
4/6/2020 |
|||||||||||||||||||
10.52 |
— |
8-K |
— |
10.3 |
4/6/2020 |
|||||||||||||||||||
10.53 |
— |
8-K /A |
— |
10.4 |
4/14/2020 |
|||||||||||||||||||
†10.54 |
— |
S-1/A |
— |
10.78 |
12/28/2011 |
|||||||||||||||||||
†10.55 |
— |
S-1/A |
— |
10.89 |
2/2/2012 |
|||||||||||||||||||
†10.56 |
— |
8-K |
— |
10.1 |
7/25/2012 |
|||||||||||||||||||
†10.57 |
— |
8-K |
— |
10.1 |
5/20/2015 |
|||||||||||||||||||
†10.58 |
— |
8-K |
— |
10.1 |
5/20/2016 |
|||||||||||||||||||
†10.59 |
— |
10-Q |
6/30/2016 |
10.3 |
8/2/2016 |
|||||||||||||||||||
†10.60 |
— |
SC-TO-I |
— |
(d)(3) |
7/25/2012 |
|||||||||||||||||||
†10.61 |
— |
SC-TO-I |
— |
(d)(4) |
7/25/2012 |
|||||||||||||||||||
†10.62 |
— |
10-K |
12/31/2012 |
10.84 |
3/15/2013 |
|||||||||||||||||||
†10.63 |
— |
8-K |
— |
10.1 |
7/2/2013 |
|||||||||||||||||||
†10.64 |
— |
8-K |
— |
10.1 |
1/9/2015 |
|||||||||||||||||||
†10.65 |
— |
S-1/A |
— |
10.75 |
11/16/2010 |
|||||||||||||||||||
†10.66 |
— |
10-K |
— |
10.64 |
3/8/2018 |
|||||||||||||||||||
†10.67 |
— |
SC-TO-I |
— |
(d)(7) |
7/25/2012 |
|||||||||||||||||||
†10.68 |
— |
SC-TO-I |
— |
(d)(8) |
7/25/2012 |
|||||||||||||||||||
†10.69 |
— |
10-K |
12/31/2012 |
10.90 |
3/15/2013 |
Incorporated by Reference |
||||||||||||||||||||||||
Exhibit Number |
Exhibit Description |
Filed Herewith |
Form |
Period Ending |
Exhibit |
Filing Date |
||||||||||||||||||
†10.70 |
— |
10-K |
12/31/2012 |
10.91 |
3/15/2013 |
|||||||||||||||||||
†10.71 |
— |
8-K |
— |
10.1 |
5/27/2016 |
|||||||||||||||||||
†10.72 |
— |
8-K |
— |
10.4 |
7/6/2016 |
|||||||||||||||||||
†10.73 |
— |
8-K |
— |
10.5 |
7/6/2016 |
|||||||||||||||||||
†10.74 |
— |
10-K |
12/31/2014 |
10.106 |
3/16/2015 |
|||||||||||||||||||
†10.75 |
— |
10-Q |
6/30/2015 |
10.5 |
8/6/2015 |
|||||||||||||||||||
†10.76 |
— |
8-K |
— |
10.1 |
7/6/2016 |
|||||||||||||||||||
†10.77 |
— |
10-Q |
3/31/2017 |
10.2 |
5/2/2017 |
|||||||||||||||||||
†10.78 |
— |
10-K |
12/31/2018 |
10.88 |
2/22/2019 |
|||||||||||||||||||
†10.79 |
— |
10-K |
12/31/2018 |
10.89 |
2/22/2019 |
|||||||||||||||||||
†10.80 |
— |
8-K |
— |
10.2 |
11/12/2014 |
|||||||||||||||||||
†10.81 |
— |
10-Q |
3/31/2017 |
10.3 |
5/2/2017 |
|||||||||||||||||||
†10.82 |
— |
8-K |
— |
10.1 |
1/9/2012 |
|||||||||||||||||||
†10.83 |
— |
10-Q |
3/31/2017 |
10.4 |
5/2/2017 |
|||||||||||||||||||
†10.84 |
— |
10-K |
12/31/2012 |
10.87 |
3/15/2013 |
|||||||||||||||||||
†10.85 |
— |
10-Q |
3/31/2017 |
10.5 |
5/2/2017 |
|||||||||||||||||||
†10.86 |
— |
8-K |
— |
10.1 |
8/13/2018 |
Incorporated by Reference |
||||||||||||||||||||||||
Exhibit Number |
Exhibit Description |
Filed Herewith |
Form |
Period Ending |
Exhibit |
Filing Date |
||||||||||||||||||
†10.87 |
— |
8-K |
— |
10.1 |
4/17/2019 |
|||||||||||||||||||
†10.88 |
— |
10-K /A |
12/31/2018 |
10.118 |
4/26/2019 |
|||||||||||||||||||
†10.89 |
— |
10-K /A |
12/31/2018 |
10.119 |
4/26/2019 |
|||||||||||||||||||
†10.90 |
— |
10-K |
12/31/2019 |
10.86 |
2/25/2020 |
|||||||||||||||||||
†10.91 |
— |
10-K |
12/31/2019 |
10.87 |
2/25/2020 |
|||||||||||||||||||
†10.92 |
— |
10-Q |
— |
10.4 |
5/2/2019 |
|||||||||||||||||||
†10.93 |
X |
|||||||||||||||||||||||
†10.94 |
X |
|||||||||||||||||||||||
†10.95 |
X |
|||||||||||||||||||||||
†10.96 |
X |
|||||||||||||||||||||||
†10.97 |
— |
10-K |
12/31/2018 |
10.97 |
2/22/2019 |
|||||||||||||||||||
†10.98 |
— |
8-K |
— |
10.2 |
7/6/2016 |
|||||||||||||||||||
†10.99 |
— |
8-K |
— |
10.3 |
7/6/2016 |
|||||||||||||||||||
†10.100 |
— |
8-K |
— |
10.17 |
10/13/2017 |
|||||||||||||||||||
†10.101 |
— |
8-K |
— |
10.1 |
2/2/2018 |
|||||||||||||||||||
†10.102 |
— |
S-8 |
— |
4.6 |
10/6/2017 |
|||||||||||||||||||
†10.103 |
— |
8-K |
— |
10.1 |
4/6/2018 |
|||||||||||||||||||
†10.104 |
— |
S-8 |
— |
4.7 |
10/6/2017 |
|||||||||||||||||||
†10.105 |
— |
S-8 |
— |
4.8 |
10/6/2017 |
Incorporated by Reference |
||||||||||||||||||||||||
Exhibit Number |
Exhibit Description |
Filed Herewith |
Form |
Period Ending |
Exhibit |
Filing Date |
||||||||||||||||||
†10.106 |
— |
8-K |
— |
10.2 |
4/6/2018 |
|||||||||||||||||||
†10.107 |
— |
8-K |
— |
10.3 |
4/6/2018 |
|||||||||||||||||||
†10.108 |
— |
8-K |
— |
10.4 |
4/6/2018 |
|||||||||||||||||||
†10.109 |
— |
S-8 |
— |
4.1 |
12/13/2018 |
|||||||||||||||||||
†10.110 |
— |
S-8 |
— |
4.2 |
12/13/2018 |
|||||||||||||||||||
†10.111 |
— |
10-K |
12/31/2018 |
10.111 |
2/22/2019 |
|||||||||||||||||||
†10.112 |
— |
10-K |
12/31/2018 |
10.112 |
2/22/2019 |
|||||||||||||||||||
†10.113 |
— |
***8-K |
— |
10.1 |
4/6/2014 |
|||||||||||||||||||
†10.114 |
— |
***8-K |
— |
10.2 |
4/16/2014 |
|||||||||||||||||||
†10.115 |
— |
***8-K |
— |
10.3 |
4/16/2014 |
|||||||||||||||||||
†10.116 |
— |
***8-K |
— |
10.4 |
4/16/2014 |
|||||||||||||||||||
†10.117 |
— |
****8-K |
— |
99.1 |
5/21/2014 |
|||||||||||||||||||
†10.118 |
— |
8-K |
— |
10.1 |
6/25/2019 |
|||||||||||||||||||
14 |
— |
10-K |
12/31/2019 |
14 |
2/25/2020 |
|||||||||||||||||||
21 |
— |
10-K |
12/31/2019 |
21 |
2/25/2020 |
|||||||||||||||||||
23 |
— |
10-K |
12/31/2019 |
23 |
2/25/2020 |
|||||||||||||||||||
31.1 |
— |
10-K |
12/31/2019 |
31.1 |
2/25/2020 |
|||||||||||||||||||
31.2 |
— |
10-K |
12/31/2019 |
31.2 |
2/25/2020 |
|||||||||||||||||||
31.3 |
X |
|||||||||||||||||||||||
31.4 |
X |
|||||||||||||||||||||||
32.1 |
— |
10-K |
12/31/2019 |
32.1 |
2/25/2020 |
|||||||||||||||||||
32.2 |
— |
10-K |
12/31/2019 |
32.2 |
2/25/2020 |
|||||||||||||||||||
99.1 |
— |
10-K |
12/31/2019 |
99.1 |
2/25/2020 |
Incorporated by Reference |
||||||||||||||||||||||||
Exhibit Number |
Exhibit Description |
Filed Herewith |
Form |
Period Ending |
Exhibit |
Filing Date |
||||||||||||||||||
101.INS |
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
— |
10-K |
12/31/2019 |
101.INS |
2/25/2020 |
||||||||||||||||||
101.SCH |
XBRL Taxonomy Extension Schema Document. |
— |
10-K |
12/31/2019 |
101.SCH |
2/25/2020 |
||||||||||||||||||
101.CAL |
XBRL Taxonomy Extension Calculation Linkbase Document. |
— |
10-K |
12/31/2019 |
101.CAL |
2/25/2020 |
||||||||||||||||||
101.DEF |
XBRL Taxonomy Extension Definition Linkbase Document. |
— |
10-K |
12/31/2019 |
101.DEF |
2/25/2020 |
||||||||||||||||||
101.LAB |
XBRL Taxonomy Extension Label Linkbase Document. |
— |
10-K |
12/31/2019 |
101.LAB |
2/25/2020 |
||||||||||||||||||
101.PRE |
XBRL Taxonomy Extension Presentation Linkbase Document. |
— |
10-K |
12/31/2019 |
101.PRE |
2/25/2020 |
||||||||||||||||||
104 |
The cover page from the Company’s Amendment No. 1 to Annual Report on Form 10-K for the year ended December 31, 2019 has been formatted in Inline XBRL. |
X |
† |
Denotes a management contract or compensatory plan or arrangement. | |
* |
Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Registrant agrees to furnish supplementally to the Securities and Exchange Commission a copy of any omitted schedule or exhibit upon request. | |
** |
Confidential treatment has been requested with respect to the omitted portions of Exhibits 10.15 and 10.17 pursuant to Rule 24b-2 promulgated under the Exchange Act which portions have been filed separately with the Securities and Exchange Commission. | |
*** |
Filed by Caesars Acquisition Company. | |
**** |
Filed by Caesars Entertainment Operating Company, Inc. |
CAESARS ENTERTAINMENT CORPORATION | ||||||
April 29, 2020 |
By: |
/s/ ERIC HESSION | ||||
Eric Hession | ||||||
Executive Vice President and Chief Financial Officer |
Exhibit 10.93
EMPLOYMENT AGREEMENT
This Employment Agreement (“Agreement”) is entered into as of September 24, 2018 (the “Effective Date”), by and between Caesars Enterprise Services, LLC, with offices at One Caesars Palace Drive, Las Vegas, Nevada (together with its successors and assigns, the “Company”) and Monica Digilio (“Executive”).
1. Term of Employment. The Company hereby agrees to employ Executive under this Agreement, and Executive hereby accepts such employment, for the Term of Employment. The Term of Employment shall commence as of the Effective Date and shall end on the fourth (4th) anniversary of the Effective Date unless terminated earlier by either party in accordance with Section 7 of this Agreement; provided that, on the fourth anniversary of the Effective Date and each anniversary of the Effective Date thereafter, the employment period shall be extended by one year unless, at least six (6) months prior to such anniversary, the Company or Executive delivers a written notice (a “Notice of Non-Renewal”) to the other party that the employment period shall not be so extended (the Initial Term as from time to time extended or renewed, the “Term of Employment”).
2. Position, Duties, and Responsibilities.
(a) During the Term of Employment, Executive shall serve as the Executive Vice President & Chief Human Resources Officer, reporting to the President & Chief Executive Officer (the “CEO”), and shall perform such lawful duties as are customarily associated with such position in a company of the size and nature of the Company. In this position, Executive shall be responsible for leading all human resources (“HR”) related activities across the Company, its Subsidiaries (defined below), and its Affiliates (defined below) (collectively, the Company, Subsidiaries, and Affiliates are referred to herein as the “Enterprise”), and serving as the architect of the Enterprise’s HR vision. This includes but is not limited to: serving as a strategic business partner to the CEO to drive enhancement of the business and global HR strategy, and could also include the following: developing human capital plans and tactics that will drive improvement across the Enterprise; collaborating with other leaders in the organization to build and foster a deep roster of strong talent across the Enterprise; identifying successors to key roles in the organization based on a rigorous understanding of capabilities, experience, motivation, and career development needs; creating uniquely tailored career development plans for employees across the Enterprise; serving as the subject matter expert and key advisor to the CEO on strategic organizational design and effectiveness, workforce planning, leadership talent, executive compensation, and succession planning; ensuring that the Company’s business, strategy, plans, and performance are supported by a well-conceived and executed HR strategy; utilizing the latest tools to generate insight and identify areas of opportunity; leading an organization with methods and actions that are ethical and in full compliance with all applicable laws, regulations, and Company policies; identifying compliance risks and taking actions necessary to eliminate or minimize risks; and creating a compliance culture within the organization and fostering an environment where employees feel comfortable reporting potential violations or misconduct. If at any time during the Term of Employment Executive assumes a position other than Executive Vice President of Human Resources for the Company, any of its Subsidiaries or any of its Affiliates, Executive expressly understands and agrees that this Section
1 |
|
2(a) is automatically modified to include those lawful duties for which Executive is responsible and those performance responsibilities consistent with Executive’s new role as represented by, but not limited to, annual goals, financial performance metrics, and day-to-day oversight and supervision.
(b) During the Term of Employment, Executive shall perform Executive’s duties faithfully and to the best of Executive’s abilities and shall devote substantially all of Executive’s business time and attention, on a full time basis (except as otherwise expressly permitted herein), to the business and affairs of the Company. Executive shall use Executive’s reasonable best efforts to advance the best interests of the Company and shall comply with all of the policies of the Company, including, without limitation, such policies with respect to legal compliance, conflicts of interest, confidentiality, insider trading, code of conduct and business ethics, and other employment-related policies as are from time to time in effect (collectively, and as amended or modified from time to time by the Company, the “Policies”).
(c) During the Term of Employment, Executive hereby agrees that Executive’s services will be rendered exclusively to the Company, and Executive shall not, except as set forth on Exhibit A attached hereto, directly or indirectly, render services to, or otherwise act in a business or professional capacity on behalf of or for the benefit of, any other Person (as defined below), whether as an employee, advisor, member of a board or similar governing body, sole proprietor, independent contractor, agent, consultant, volunteer, intern, representative, or otherwise, whether or not compensated. With respect to the positions listed on Exhibit A attached hereto, Executive may engage in such activities so long as such activities do not materially interfere with the proper performance of Executive’s duties and responsibilities hereunder and/or otherwise materially conflict with any of the Policies of the Company or otherwise violate the terms of this Agreement.
(d) Executive’s services hereunder shall be performed by Executive in the Company’s principal offices located in Clark County, Nevada or such other location that serves as Executive’s primary office, if such other location is mutually agreed by Executive and by the Company; provided, that, Executive may be required to travel for business purposes during the Term of Employment. The Company shall move Executive to Clark County pursuant to its Relocation Plan 1HA. To the extent Executive decides to not sell her existing home, the Company shall provide Executive the cost equivalent of the benefits provided for under Relocation Plan 1HA as if she sold her home.
(e) Upon expiration of the Term of Employment or the termination of Executive’s employment for any reason, upon the request of the Board or its designee, Executive shall be deemed to have resigned, in writing, from any positions Executive then holds with the Company and any of its Subsidiaries and Affiliates, including membership on any Company, Subsidiary or Affiliate boards unless otherwise determined by the Company. For purposes of this Agreement, (i) an “Affiliate” of the Company or any other Person (as defined below) shall mean a Person that directly or indirectly controls, is controlled by, or is under common control with, the Person specified; (ii) a “Subsidiary” of any Person shall mean any Person of which such Person owns, directly or indirectly, more than half of the equity ownership interests (measured either by value or by ability to elect or control the board of directors or other governing body); and (iii) a “Person” or “person” means any individual, partnership, limited partnership, corporation, limited
2 |
|
liability company, trust, estate, cooperative, association, organization, proprietorship, firm, joint venture, joint stock company, syndicate, company, committee, government or governmental subdivision or agency, or other entity, in each case, whether or not for profit.
3. Base Salary. During the Term of Employment, the Company shall pay Executive an annualized base salary of Five Hundred Ninety-Thousand dollars ($590,000.00), minus applicable deductions and withholdings (“Base Salary”), payable in accordance with the regular payroll practices applicable to executives of the Company. During the Term of Employment, the Base Salary shall be subject to annual review by the Company, in its sole discretion, for possible increase and any such increased Base Salary shall constitute “Base Salary” for purposes of this Agreement. Executive shall not be entitled to receive any additional consideration for service during the Term of Employment as a member of the Board or the board of any of the Company’s Subsidiaries or Affiliates.
4. Bonus. During the Term of Employment, Executive shall participate in the Company’s annual incentive bonus program(s) applicable to Executive’s position (the “AIP”) and be eligible to receive a bonus (the “Bonus”) based upon the achievement of performance objectives as determined by the Caesars Entertainment Corporation Compensation and Management Development Committee (the “CMDC”) and 162(m) Plan Committee. The annual target for the Bonus shall be 75% of the Base Salary. Executive agrees and understands, however, that the actual amount of the Bonus, if any, will be determined by the CMDC in its sole discretion. The Bonus, if any, shall be paid in accordance with the terms of the AIP; provided, that, the Bonus shall not be considered earned for any purpose unless Executive is still employed by the Company on (and has not given or received a Notice of Termination (as defined below) prior to) the payment date.
Notwithstanding anything to the contrary herein, Executive shall not participate in the AIP for the 2018 calendar year but rather, shall receive a one-time bonus payment in the amount of two hundred and fifty thousand dollars ($250,000) (the “First Year Bonus”) in respect of the 2018 calendar year unless Executive is terminated by the Company for Cause (defined below) or voluntarily terminates without Good Reason (defined below) before the First Year Bonus payment date. The First Year Bonus shall be paid to Executive at or around the time other employees receive their bonus payment under the AIP in respect of the 2018 calendar year.
5. Claw-Back. Notwithstanding any provision in this Agreement to the contrary, amounts payable hereunder shall be subject to claw-back or disgorgement, to the extent applicable, under (A) the Policies or any claw-back policy adopted by the Company, (B) the Dodd-Frank Wall Street Reform and Consumer Protection Act, as amended, and rules, regulations, and binding, published guidance thereunder, which legislation provides for the clawback and recovery of incentive compensation in the event of certain financial statement restatements and (C) the Sarbanes–Oxley Act of 2002. If pursuant to Section 10D of the Securities Exchange Act of 1934, as amended (the “Act”), the Company (or any of its Subsidiaries or Affiliates) would not be eligible for continued listing, if applicable, under Section 10D(a) of the Act if it (or they) did not adopt policies consistent with Section 10D(b) of the Act, then, in accordance with those policies that are so required, any incentive-based compensation payable to Executive under this Agreement or otherwise shall be subject to claw-back in the circumstances, to the extent, and in the manner, required by Section 10D(b)(2) of the Act, as
3 |
|
interpreted by rules of the Securities Exchange Commission. Nothing in this provision is intended to supersede any existing or future claw-back provision adopted or amended by the Company, including, but not limited to the provision set forth in the Company’s Omnibus Incentive Plan.
6. Other Benefits.
(a) LTI Grant. Executive will participate in regular, periodic grants under the Company’s Long Term Incentive (“LTI”) Program. Executive understands and acknowledges that LTI grant(s) are subject to review, discretion, and approval of the CMDC. LTI grants are subject to vesting schedules at the discretion of the CMDC. The target value for Executive’s annual LTI grant is one hundred fifty percent (150%) of the Base Salary. Executive understands and acknowledges that the actual value of equity to be granted is at the discretion of the CMDC and is not guaranteed. Further, the actual future value of LTI grants is subject to risk based on the performance of the company’s stock and cannot be guaranteed.
In addition, the Company will recommend to the CMDC that Executive be awarded a sign-on equity grant (“Sign-On Grant”) as soon as administratively practicable after execution of this Agreement by both Executive and the Company, with a target of four hundred forty-two thousand and five hundred dollars ($442,500) based on value at time of the Sign-On Grant, using the Company’s typical methods for valuing equity, and subject to vesting at the CMDC’s sole discretion. Executive understands and acknowledges that any Sign-On Grant, including actual amount and value of equity granted, will be made at the sole discretion of the CMDC. The proposed award of the Sign-On Grant is attached hereto as Exhibit D.
(b) Employee Benefits. During the Term of Employment, Executive shall be entitled to participate in such employee benefit plans and insurance programs made available generally to employees of the Company, or which it may adopt from time to time, for its employees, in accordance with the eligibility requirements for participation therein. Nothing herein shall be construed as a limitation on the ability of the Company to adopt, amend, or terminate any such plans, policies, or programs.
(c) Vacations. During the Term of Employment, Executive shall be entitled to paid vacation in accordance with the normal vacation policies of the Company, as applicable to executive officers generally.
(d) Reimbursement of Business and Other Expenses. During the Term of Employment, Executive is authorized to incur reasonable expenses in carrying out Executive’s duties and responsibilities under this Agreement, and the Company shall promptly reimburse Executive for all such expenses, subject to documentation and subject to the policies of the Company relating to expense reimbursement.
(e) D&O Insurance. During the Term of Employment, the Company shall provide Executive with Director’s and Officer’s indemnification insurance coverage in accordance with the terms of the Company’s policies as in effect from time to time, which policies may be subject to change during the Term of Employment.
4 |
|
7. Termination of Employment. Executive’s employment hereunder may be terminated prior to the end of the Term of Employment under the following circumstances, and any such termination shall not be, nor be deemed to be, a breach of this Agreement:
(a) Death. Executive’s employment hereunder shall terminate upon Executive’s death.
(b) Disability. The Company shall have the right to terminate Executive’s employment hereunder for Disability (as defined below). “Disability” shall mean Executive’s inability to perform Executive’s duties hereunder on a full-time basis for a period of one hundred and eighty (180) days during any three hundred sixty-five (365) day period, as a result of physical or mental incapacity as determined by a medical doctor reasonably selected in good faith by the Company. Any action taken pursuant to this Section 7(b) shall be in accordance with the Americans with Disabilities Act.
(c) For Cause. The Company shall have the right to terminate Executive’s employment for Cause. Upon the reasonable belief by the Company that Executive has committed an act (or has failed to act in a manner) which constitutes Cause, including under the provisions of paragraph 13 of this Agreement, the Company may immediately suspend Executive from Executive’s duties herein and bar Executive from its premises during the Company’s investigation of such acts (or failures to act) and any such suspension shall not be deemed to be a breach of this Agreement by the Company and/or otherwise provide Executive a right to terminate Executive’s employment for Good Reason (the “Investigation Period”); provided, however, subject to the notice and cure provisions set forth below, that the Company shall have the right to terminate Executive’s employment for Cause immediately and nothing in this Agreement shall require the Company to provide an Investigation Period or otherwise provide advance notice of termination for Cause. In addition to violation of the provisions contained in paragraph 13 of this Agreement, for purposes of this Agreement, “Cause” shall mean (i) Executive’s conviction of or guilty plea or plea of no contest to a felony (or its equivalent under applicable law), (ii) conduct by Executive that constitutes fraud or embezzlement, or any acts of dishonesty in relation to Executive’s duties with the Company, (iii) Executive’s gross negligence, bad faith or willful misconduct which creates a likelihood of material reputational or economic harm to the Company or its Subsidiaries or its Affiliates as reasonably determined by the Company in its sole discretion, (iv) Executive’s refusal or failure to perform Executive’s duties hereunder as reasonably determined by the Company in its sole discretion, (v) Executive’s refusal or failure to perform any reasonable directive of the Company, (vi) Executive’s knowing misrepresentation of any material fact that the Company reasonably requests, (vii) Executive being found unsuitable by the Company’s Compliance Committee or by a gaming regulatory agency, or, the Company is either informed or notified by a federal, state or local regulatory authority that such regulatory authority will recommend a finding of unsuitability as to Executive, in any jurisdiction in which the Company, Caesars Entertainment Corporation, or any of their respective Subsidiaries or Affiliates conducts operations, (viii) Executive’s violation, as reasonably determined by the Company in its sole discretion, of any securities or employment laws or regulations, or (ix) Executive’s breach of Executive’s obligations under this Agreement or violation of the Policies as reasonably determined by the Company in its sole discretion. If the Company has reasonably determined in its sole discretion that an act by Executive supporting the Company’s finding of Cause under subsection (iv), (v) or
5 |
|
(ix) is curable, Executive shall have thirty (30) days to cure such actions; provided, however, that the determination of whether such action has been cured shall be in the Company’s sole discretion.
(d) Without Cause. The Company shall have the right to terminate Executive’s employment hereunder without Cause, at any time and for any reason or no reason, by providing Executive with a Notice of Termination.
(e) By Executive. Executive shall have the right to terminate Executive’s employment hereunder without Good Reason (as defined below) by providing the Company with a Notice of Termination at least thirty (30) days prior to such termination. Executive also shall have the right to terminate Executive’s employment hereunder with Good Reason as set forth herein. For purposes of this Agreement, Executive shall have “Good Reason” to terminate Executive’s employment if, (i) within thirty (30) days after Executive knows (or has reason to know) of the occurrence of any of the following events, Executive provides written notice to the Company requesting that it cure such events, (ii) the Company fails to cure, if curable, such events within sixty (60) days following such notice, and, (iii) within ten (10) days after the expiration of such cure period, Executive provides the Company with a Notice of Termination: (A) a material reduction in Executive’s Base Salary other than a reduction that applies to a similarly situated class of employees of the Company or its Subsidiaries or Affiliates; (B) a material diminution in Executive’s duties or responsibilities for a period of more than forty-five (45) days (not including any Investigation Period); (C) a material breach by the Company of any of its material obligations to the Executive under this Agreement; (D) a material diminution of the annual target for the Bonus other than a determination by the CMDC and 162(m) Plan Committee in its sole discretion about the actual amount of the Bonus; or (E)a relocation of Executive’s employment location more than 50 miles outside of Executive’s present primary location of Las Vegas, Nevada. .
(f) Due to Expiration of the Term of Employment. The Term of Employment shall terminate upon the expiration of the then current Term of Employment in the event that either Party delivers a Notice of Non-Renewal to the other Party in accordance with Section 1 of this Agreement.
8. Date of Termination. Executive’s employment shall terminate, and the effective date of termination of both this Agreement and of Executive’s employment (the “Date of Termination”) shall be as follows: (i) if Executive’s employment is terminated due to Executive’s death pursuant to Section 7(a) of this Agreement, the date of Executive’s death, as stated on the death certificate, shall be the Date of Termination; (ii) if Executive’s employment is terminated due to Executive’s disability pursuant to Section 7(b) of this Agreement, the Date of Termination shall be fifteen (15) days after a Notice of Termination is delivered to Executive, as set forth in Section 16 below; (iii) if Executive’s employment is terminated for Cause pursuant to Section 7(c) of this Agreement, the Date of Termination shall be the earlier of: (a) the date on which the Company notifies Executive (in writing) of her termination for Cause; or (b) the date on which a Notice of Termination is delivered to Executive pursuant to Section 16 below; (iv) if Executive’s employment is terminated without Cause, as set forth in Section 7(d) of this Agreement, the Date of Termination shall be the date set forth in the Notice of Termination and
6 |
|
delivered to Executive, as set forth in Section 16 below; (v) if Executive’s employment is terminated by Executive without Good Reason pursuant to Section 7(e) of this Agreement, the Date of Termination shall be (30) days after delivery to the Company of a Notice of Termination as set forth in Sections 7(e) and 16 of this Agreement; provided further, that in the event of termination of Executive’s employment hereunder without Good Reason, the Company may, in its sole and absolute discretion, accelerate such Date of Termination by delivering to Executive a written notice of such acceleration, as set forth in Section 16 below; (vi) if Executive’s employment is terminated by Executive for Good Reason pursuant to Section 7(e) of this Agreement, the Date of Termination shall be the date upon which a Notice of Termination is delivered to the Company, as set forth in Sections 7(e) and 16 of this Agreement; and (vii) if Executive’s employment is terminated by the Company or by Executive by delivering a Notice of Non-Renewal pursuant to Sections 1, 7(f), and 16 of this Agreement, the Date of Termination shall be the last day of the then-current Term of Employment.
A Notice of Termination shall identify the provision of this Agreement pursuant to which the Executive’s employment and this Agreement are being terminated.
9. Compensation Upon Termination. In the event Executive’s employment terminates prior to the expiration of the Term of Employment, the Company shall provide Executive with the payments and benefits set forth below. The payments described herein shall be in lieu of any other severance or termination benefits that Executive may otherwise have been eligible to receive under any severance policy, plan, or program maintained by the Company or its Subsidiaries or Affiliates or as otherwise mandated by law. To the extent that the Company and/or its Subsidiaries or Affiliates are required to pay Executive severance or termination pay under any such severance policy, plan, program, or applicable law, the amounts payable hereunder shall be reduced, but not below zero, on a dollar for dollar basis, and if and to the extent such reduction is permissible under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).
(a) Termination for Cause or Without Good Reason. If Executive’s employment is terminated by the Company for Cause or by Executive without Good Reason:
(i) within ten (10) business days following such termination, the Company shall pay to Executive any unpaid Base Salary earned through the Date of Termination;
(ii) within thirty (30) days following such termination, the Company shall reimburse Executive pursuant to Section 6(c) for reasonable expenses incurred but not paid prior to such termination of employment; and
(iii) the Company shall provide to Executive other or additional benefits (if any), in accordance with the then-applicable terms of any then-applicable plan, program, agreement or other arrangement of any of the Company, or of any of its Subsidiaries or Affiliates, in which
7 |
|
Executive participates (the rights described in sub-clauses (i), (ii), and (iii) are collectively referred to as the “Accrued Obligations”). Thereafter, the Company shall have no further obligation under this Agreement or otherwise to Executive or Executive’s legal representatives or estate except as required by any applicable law.
(b) Death. If Executive’s employment is terminated due to Executive’s death during the Term of Employment, Executive or Executive’s beneficiary, legal representative, or estate shall receive the Accrued Obligations. Thereafter, the Company shall have no further obligation under this Agreement to Executive or Executive’s beneficiaries, legal representatives or estate except as otherwise required by applicable law.
(c) Termination Without Cause, For Good Reason, or upon Expiration of the Term of Employment Due to Company’s Issuance of a Notice of Non-Renewal, or for Disability. In the event that Executive’s employment under this Agreement is terminated by the Company without Cause under Section 7(d) of this Agreement, by Executive with Good Reason under Section 7(e) of this Agreement, upon expiration of the Term of Employment due to Company’s issuance of a Notice of Non-Renewal pursuant to Section 7(f) of this Agreement, or by the Company for Disability under Section 7(b) of this Agreement during the Term of Employment, the Company shall pay or provide to Executive the Accrued Obligations and, subject to Executive’s signing a separation agreement and release in the form attached hereto as Exhibit B (with such changes as may be necessary due to applicable law) (the “Release”) within twenty-one (21) days or forty-five (45) days, whichever period is applicable under the ADEA (as defined in Exhibit B) following the Date of Termination, and not revoking the Release within seven (7) days of signing it, the Company shall pay to Executive a severance amount equal to Executive’s monthly rate of Base Salary (i.e., 1/12 of Executive’s annual rate of Base Salary) for each of eighteen (18) months (the “Severance Period”) commencing after execution of the release by Executive, but in no case sooner than expiration of the 7-day waiting period set forth in Section 5(b) of Exhibit B, in accordance with the Company’s regular payroll practices; provided, that, the Company may cease making the payments under this Section 9(c) (in addition to asserting any other rights it may have in law of equity) (i) if Executive is in breach of any of Executive’s obligations under Section 10 of this Agreement and Executive has failed to cure such breach, if curable, within ten (10) days following the Company’s notice to Executive of such breach; or (2) if Executive is in breach of any of the terms of the Release. If applicable, Executive will be entitled to receive the benefits set forth on Exhibit C hereto during the Severance Period.
(d) Executive’s Equity Awards. The Executive’s equity awards, including but not limited to, options and the shares acquired thereunder, restricted stock and restricted stock units, if any, will be treated in accordance with the terms of the plan pursuant to which such awards and grants were awarded.
10. Restrictive Covenants and Confidentiality.
(a) Acknowledgments. Executive acknowledges that: (i) as a result of Executive’s employment by the Company, Executive has obtained and will obtain Confidential Information
8 |
|
(as defined below); (ii) the Confidential Information has been developed and created by the Company and its Subsidiaries and Affiliates at substantial expense and the Confidential Information constitutes valuable proprietary assets of the Company; (iii) the Company and its Subsidiaries and Affiliates will suffer substantial damage and irreparable harm which will be difficult to compute if, during the Term of Employment or during the Restricted Period as defined in Section 10(c) below, Executive should engage in or assist a Competitive Business (as defined herein) in violation of the provisions of this Agreement; (iv) the nature of the Company’s and its Subsidiaries’ and Affiliates’ business is such that it can be conducted anywhere in the world and is not limited to a geographic scope or region; (v) the Company and its Subsidiaries and Affiliates will suffer substantial damage which will be difficult to compute if, during the Term of Employment or thereafter, Executive should solicit or interfere with the Company’s or its Subsidiaries’ or Affiliates’ employees, clients, or customers or should divulge Confidential Information relating to the business of the Company or its Subsidiaries or Affiliates in violation of the provisions of this Agreement; (vi) the provisions of this Agreement are reasonable and necessary for the protection of the business of the Company and its Subsidiaries and Affiliates; (vii) the Company would not have hired or continued to employ Executive or grant the benefits contemplated under this Agreement unless Executive agreed to be bound by the terms hereof; and (viii) the provisions of this Agreement will not preclude Executive from other gainful employment following Executive’s termination from the Company. “Competitive Business” as used in this Agreement shall mean any business which competes directly or indirectly with the Company’s or its Affiliates’ or Subsidiaries’ business of owning, operating, managing or branding casinos, casino/resorts, casino/hotels, internet gaming, or other gaming venture engaged in by the Company or any of its Affiliates or Subsidiaries as of the Date of Termination, as well as providing goods or services relating to casino resort operations and gaming. For the avoidance of doubt, nothing herein shall bar Executive from, among other things, providing services to any resort or hotel entity whose principal business or investment does not, on more than a de minimis basis, engage in similar casino resort operations and gaming, casinos, casino/resorts, casino/hotels, internet gaming, or other gaming venture engaged in by the Company or any of its Subsidiaries or Affiliates as of the Date of Termination. “Confidential Information” as used in this Agreement shall mean any and all confidential and/or proprietary knowledge, data, or confidential, non-public information of the Company or any Subsidiary or Affiliate, including, without limitation, any: (A) food and beverage procedures, recipes, finances, financial management systems, player identification systems (Total Rewards), pricing systems, organizational charts, salary and benefit programs, and training programs, (B) trade secrets, drawings, inventions, methodologies, mask works, ideas, processes, formulas, source or object codes, data, programs, software source documents, data, film, audio and digital recordings, works of authorship, know-how, improvements, discoveries, developments, designs or techniques, intellectual property or other work product of the Company or any Affiliate, whether or not patentable or registrable under trademark, copyright, patent, or similar laws; (C) information regarding plans for research, development, new service offerings and/or products, marketing, advertising, and selling, distribution, business plans, business forecasts, budgets, and unpublished financial statements, licenses, prices, costs, suppliers, customers, or distribution
9 |
|
arrangements; (D) non-public information regarding and collected from employees, suppliers, customers, clients, suppliers, vendors, agents, and/or independent contractors of the Company or any Subsidiary or Affiliate; (E) concepts and ideas relating to the development and distribution of content in any medium or to the current, future, or proposed business opportunities, products or services of the Company or any Subsidiary or Affiliate; or (F) any other information, data, or the like that is designated as confidential or treated as confidential by the Company or any of its Subsidiaries or Affiliates.
(b) Confidentiality. In consideration of the compensation and other items of benefit provided for in this Agreement, Executive agrees not to, at any time, either during the Term of Employment or thereafter, divulge, post, use, publish, or in any other manner reveal, directly or indirectly, to any person, firm, corporation or any other form of business organization or arrangement and keep in the strictest confidence any Confidential Information, except (i) as may be reasonably necessary to the performance of Executive’s duties hereunder, (ii) with the express written consent of the Company’s CEO or General Counsel, (iii) to the extent that any such information is in or becomes in the public domain other than as a result of Executive’s breach of any of obligations hereunder, or (iv) where required to be disclosed by court order, subpoena or other government process (including but not limited to disclosure(s) required by any gaming regulatory authority) and in such event, provided that Executive notifies the Company in writing in accordance with Section 16 below within three (3) days of receiving such order, subpoena, or process, cooperates with the Company in seeking an appropriate protective order and in attempting to keep such information confidential to the maximum extent possible. Executive agrees to promptly deliver to the Company the originals and all copies, in whatever medium, of all such Confidential Information in Executive’s possession, custody or control.
In addition, except as otherwise permitted by state or federal law, Executive agrees to keep the terms and conditions of this Agreement confidential, as set forth above, unless disclosure is otherwise required by applicable law or regulation including disclosure(s) required by any gaming regulatory authority. Executive understands that nothing contained in this Agreement limits Executive’s ability to file a charge or complaint with the U.S. Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state or local governmental agency or commission (government agencies). Executive further understands that this Agreement does not limit Executive’s ability to communicate with any government agencies or otherwise participate in any investigation or proceeding that may be conducted by any government agency, including providing documents or other information, without notice to the company. Executive may share the terms and conditions of this Agreement with Executive’s spouse, legal counsel, and accountants, provided that any such individual agrees to keep that information strictly confidential and disclose it to no other person. Executive agrees that if any such individual to whom Executive discloses information regarding the terms of this Agreement then discloses such information to any other person, Executive will be personally liable for such disclosure as a breach of this Agreement. Executive affirms that Executive has not made any prior disclosures that, if made after signing this Agreement, would have violated this obligation of confidentiality. Executive understands that confidentiality as set forth in this paragraph 10(b) is an important part of the consideration Executive is giving to the Company in this Agreement and that it would be very difficult for the Company to quantify the
10 |
|
effect of a breach of these provisions, and that, accordingly, injunctive relief is an appropriate remedy for any breach of these provisions, whether by Executive or by any person to whom Executive or Executive’s agent or agents have divulged information regarding the terms of this Agreement. Under the federal Defend Trade Secrets Act of 2016, Executive shall not be held criminally or civilly liable under federal or state trade secret law for the disclosure of a trade secret that: (a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made to Executive’s attorney in relation to a lawsuit for retaliation against Executive for reporting a suspected violation of law; or (c) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.
(c) Non-Compete. The Parties agree that, in the course of Executive performing Executive’s job duties for the Company, Executive will necessarily become intimately familiar with the Company’s human resources-related strategies, plans, techniques, systems, and financial information. The Parties further agree that, if Executive were to become employed by a Competitive Business within eighteen (18) months of the termination of Executive’s employment with Company, Executive would inevitably use and disclose the Company’s Confidential Information to such Competitive Business, giving such Competitive Business an unfair competitive advantage. In consideration of the compensation and other items of benefit provided for in this Agreement, Executive covenants and agrees that during the Term of Employment and for a period of eighteen (18) months following the Date of Termination of Executive’s employment for any reason, or from the entry by a court of competent jurisdiction of a judgment enforcing this Section, whichever of the foregoing is last to occur (the “Restricted Period”), Executive will not, for Executive, or in conjunction with any other Person (whether as a shareholder, partner, member, principal, agent, lender, director, officer, manager, trustee, representative, employee, intern, volunteer, consultant, or in another capacity), directly or indirectly, provide to any Competitive Business the same or substantially similar services as those provided by Executive to the Company whether (i) as a Executive Vice President of Human Resources, (ii) in any substantially similar role irrespective of title or, (iii) if Executive assumes a new position within the Enterprise during the Term of Employment, in the same or substantially similar role as reflected by such new position. Notwithstanding anything herein to the contrary, this Section 10(c) shall not prevent Executive from acquiring securities representing not more than 1% of the outstanding voting securities of any entity the securities of which are traded on a national securities exchange or in the over the counter market.
(d) Non-Solicitation of Employees. In consideration of the compensation and other items of benefit provided for in this Agreement, Executive covenants and agrees that during the Term of Employment and for a period of eighteen (18) months following the Date of Termination of Executive’s employment for any reason, or from the entry by a court of competent jurisdiction of a judgment enforcing this Section, whichever of the foregoing is last to occur, Executive shall not, without the prior written permission of the Company’s CEO or General Counsel, directly or indirectly (i) solicit, or have or assist any other person or entity to solicit any person who is employed by or providing services to the Company or its Subsidiaries or Affiliates, at the time Executive’s employment with the Company terminates, or who was employed by the Company or its Subsidiaries or Affiliates within the six-month period prior to the termination of Executive’s employment or (ii) encourage, assist, entice, request and/or
11 |
|
directly or indirectly cause any employee or consultant of the Company or its Subsidiaries or Affiliates to breach or threaten to breach any terms of such employee’s or consultant’s agreements with the Company or its Subsidiaries or Affiliates or to terminate his or her employment with the Company or its Subsidiaries or Affiliates.
(e) Non-Solicitation of Clients and Customers. In consideration of the compensation and other items of benefit provided for in this Agreement, Executive covenants and agrees that during the Term of Employment and for a period of eighteen (18) months following the termination of Executive’s employment for any reason, or from the entry by a court of competent jurisdiction of a judgment or any appeal thereon, whichever of the foregoing is last to occur, Executive will not, for Executive, or in conjunction with any other Person (whether as a shareholder, partner, member, lender, principal, agent, director, officer, manager, trustee, representative, employee, consultant or in another capacity), directly or indirectly: (i) solicit any Person who, to Executive’s knowledge, was an existing or prospective customer, client, supplier, or vendor of the Company or its Subsidiaries or Affiliates at the time of, or at the time during the six (6) months preceding, Executive’s termination of employment (an “Associated Person”); or (ii) request or cause any of the Company’s or its Subsidiaries’ or Affiliates’ clients, customers, suppliers, or vendors (an “Associated Person”) to cancel, terminate, reduce or otherwise interfere with any business relationship with the Company or its Subsidiaries or Affiliates. For the avoidance of doubt, an Associated Person does not include a guest at a Company hotel or casino in the ordinary course. The restrictive covenants detailed in this Section 10(e) shall not apply if: (i) Executive did not solicit the Associated Person; (ii) the Associated Person voluntarily chooses to cancel, terminate or reduce its relationship with the Company and voluntarily seek the services of Executive; and (iii) Executive otherwise complies with all restrictive covenants detailed in Section 10.
(f) Post-Employment Property. The Parties agree that any work of authorship, invention, design, discovery, development, technique, improvement, source code, hardware, device, data, apparatus, practice, process, method, or other work product whatever (whether patentable or subject to copyright, or not, and hereinafter collectively called “discovery”) that Executive, either solely or in collaboration with others, has conceived, created, made, discovered, invented, developed, perfected, or reduced to practice during the term of Executive’s employment, whether or not during regular business hours or on the Company’s or any Subsidiaries and Affiliates’ premises and relate at the time of conception or reduction to practice of the invention to the Company’s business, or actual or demonstrably anticipated research or development of the Company, shall be the sole and complete property of the Company and/or its Subsidiaries and Affiliates. More particularly, and without limiting the foregoing, Executive agrees that all of the foregoing and any (i) inventions (whether patentable or not, and without regard to whether any patent therefor is ever sought); (ii) marks, names, or logos (whether or not registrable as trade or service marks, and without regard to whether registration therefor is ever sought); (iii) works of authorship (without regard to whether any claim of copyright therein is ever registered); and (iv) trade secrets, ideas, and concepts (subsections (i) - (iv) collectively, “Intellectual Property Products”) created, conceived, or prepared on the Company’s or its Subsidiaries and Affiliates’ premises or otherwise, whether or not during normal business hours or on the Company’s premises, and related to the Company’s business, shall perpetually and throughout the world be the exclusive property of the Company and/or its Subsidiaries and Affiliates, as shall all tangible media (including, but not limited to, papers, computer media, and
12 |
|
digital and cloud-based of all types and models) in which such Intellectual Property Products shall be recorded or otherwise fixed. Upon termination of Executive’s employment with the Company for any reason whatsoever, and at any earlier time the Company so requests, Executive will promptly deliver to the custody of the person designated by the CEO or General Counsel of the Company all originals and copies of any documents and other property of the Company or any of its Subsidiaries or Affiliates in Executive’s possession or under Executive’s custody or control.
(g) Works for hire. Executive agrees that all works of authorship created in whole or in part by Executive during Executive’s engagement by the Company and relate at the time of conception or reduction to practice of the invention to the Company’s business, or actual or demonstrably anticipated research or development of the Company shall be works made for hire of which the Company or its Subsidiaries and Affiliates is the author and owner of copyright. To the extent that any competent decision-making authority should ever determine that any work of authorship created by Executive during Executive’s engagement by the Company is not a work made for hire, Executive hereby assigns all right, title, and interest in the copyright therein, in perpetuity and throughout the world, to the Company. To the extent that this Agreement does not otherwise serve to grant or otherwise vest in the Company or any of its Subsidiaries or Affiliates all rights in any Intellectual Property Product created in whole or in part by Executive during Executive’s engagement by the Company, Executive hereby assigns all right, title, and interest therein, in perpetuity and throughout the world, to the Company. Executive agrees to execute, immediately upon the Company’s reasonable request and without any additional compensation, any further assignments, applications, conveyances or other instruments, at any time after execution of this Agreement, whether or not Executive remains employed by the Company at the time such request is made, in order to permit the Company, its Subsidiaries and Affiliates, and/or their respective successors and assigns to protect, perfect, register, record, maintain, or enhance their rights in any Intellectual Property Product; provided, that, the Company shall bear the cost of any such assignments, applications, or consequences.
(h) Non-Disparagement. Executive agrees that Executive will not defame, denigrate, or publicly criticize the services, plans, methodologies, business, integrity, veracity or personal or professional reputation of the Company or any of its Subsidiaries or Affiliates or their respective officers, directors, partners, executives, or agents in either a professional or personal manner at any time during or following the Term of Employment. The Company agrees to instruct the CEO, Executive Vice President, General Counsel, and Chief Legal, Risk & Security Officer and members of the Board of Directors of the Company not to defame, denigrate, or publically criticize the Executive at any time during or following the Term of Employment. Nothing in this Section 10(h) shall prohibit truthful disclosure (i) as required by law; (ii) made in connection with any legal or regulatory process; or (iii) made in the course of Executive carrying out her duties and discussing personnel issues internally.
(i) Enforcement. If Executive commits a breach of any of the provisions of this Section 10, the Company shall have the right and remedy to have the provisions specifically enforced by any court having jurisdiction, it being acknowledged and agreed by Executive that Executive possesses considerable Confidential Information and that the services being rendered hereunder are of a special, unique, and extraordinary character and that any such breach will cause irreparable injury to the Company and its Subsidiaries and Affiliates and that money
13 |
|
damages will not provide an adequate remedy to the Company or its Subsidiaries or Affiliates. Such right and remedy shall be in addition to, and not in lieu of, any other rights and remedies available to the Company and its Subsidiaries and Affiliates, at law or in equity. Accordingly, Executive consents to the issuance of a temporary and/or preliminary injunction, in aid of arbitration, consistent with the terms of this Agreement.
(j) Modification/Blue Pencil. Except where prohibited, if, at any time, a reviewing court of appropriate jurisdiction called upon to issue an injunction in accordance with Section 10(i) finds any of the provisions of this Section 10 to be invalid or unenforceable under any applicable law, by reason of being vague or unreasonable as to area, duration, or scope of activity, this Agreement shall be considered divisible and such court shall have authority to modify or blue pencil this Agreement to cover only such area, duration, and scope as shall be determined to be reasonable and enforceable by the court. Executive and the Company agree that this Agreement, as so amended, shall be valid and binding as though any invalid or unenforceable provision had not been included herein.
(k) EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS CAREFULLY READ THIS SECTION 10 AND HAS HAD THE OPPORTUNITY TO REVIEW ITS PROVISIONS WITH ANY ADVISORS AS EXECUTIVE CONSIDERED NECESSARY, AND THAT EXECUTIVE UNDERSTANDS THIS AGREEMENT’S CONTENTS AND SIGNIFIES SUCH UNDERSTANDING AND AGREEMENT BY SIGNING BELOW.
11. Assignability; Binding Nature. The rights and benefits of Executive hereunder shall not be assignable, whether by voluntary or involuntary assignment or transfer by Executive or otherwise. This Agreement shall be binding upon, and inure to the benefit of, the successors and assigns of the Company, and the heirs, beneficiaries, executors, and administrators of Executive, and shall be assignable by the Company only to any entity acquiring substantially all of the assets of the Company, whether by merger, consolidation, sale of assets or similar transactions. In the event of such an assignment, Executive shall receive $1,000, subject to applicable deductions and withholding taxes, in addition to Executive’s compensation hereunder as additional consideration for such assignment.
12. Representations. Executive represents and warrants to the Company, and Executive acknowledges that the Company has relied on such representations and warranties in employing Executive, that neither Executive’s duties as an employee of the Company nor Executive’s performance in accordance with the terms of this Agreement will breach any other obligations of Executive, including under any other agreement to which Executive is a party, including, without limitation, any agreement limiting the use or disclosure of any information acquired by Executive prior to Executive’s employment by the Company. Executive represents and warrants that Executive has not willfully or knowingly misrepresented or withheld any material fact that the Company would reasonably need to make an informed decision regarding an offer of employment to Executive. In addition, Executive represents and warrants and acknowledges that the Company has relied on such representations and warranties in employing Executive, and that Executive has not entered into, and will not enter into, any agreement, either oral or written, in conflict herewith.
14 |
|
13. Compliance. Executive agrees to comply with all federal, state, local, provincial or other laws or regulations in all jurisdictions both domestic and international. Failure to do so could result in termination of this Agreement for Cause pursuant to paragraph 7(c) of this Agreement. As a holder of privileged gaming licenses, the Company and its affiliates are required to adhere to strict laws and regulations regarding its associations, including associations with key employees as defined under the Caesars Entertainment Corporation Ethics and Compliance Program (“E&C Program”). If at any time: (a) the Company’s Compliance Committee determines, in its sole discretion, that Executive is an unsuitable person as that term is defined in the E&C Program, or that it would be in the Company’s best interest to terminate the employment of Executive in order to protect any proposed or pending gaming licenses or any of its privileged gaming licenses; or (b) the Company is either informed or notified by a federal, state or local regulatory authority that such regulatory authority will recommend a finding of unsuitability as to Executive, the Company may immediately terminate this Agreement pursuant to paragraph 7(c) of this Agreement. During the term of this Agreement, to the extent that any prior disclosure made by Executive becomes inaccurate, including but not limited to the initiation of any criminal proceeding or any civil or administrative proceeding or process which alleges any violations of law involving Executive shall disclose the information to Company within 10 calendar days from that event. Executive agrees to comply with any background investigation conducted in connection with the disclosure of this updated information. If Executive is or becomes required to be licensed by any federal, state, and/or local gaming regulatory agency and fails to become so licensed, or, once licensed, fails to maintain such license or fails to continue to be suitable by the governmental regulatory agency, the Company may immediately terminate this Agreement for Cause pursuant to paragraph 7(c) of this Agreement.
By signing this Agreement, Executive acknowledges that Executive has received a copy of the E&C Program, the Caesars Anti-Corruption Compliance Policy, and the Caesars Entertainment Corporation Anti-Money Laundering Policy and Program. Executive understands and agrees to comply with these and all other policies adopted by the Company. Executive shall sign all certification/attestation forms associated with these policies and return them to the Caesars Corporate Compliance Department. Executive further understands Executive’s obligation to report suspected violations of law, regulation, policies, or of unethical conduct occurring within the Company and/or its affiliates to the Chief Regulatory & Compliance Officer, his/her designee, or through the Ethics and Compliance Hotline, the number for which is posted on the Caesars Entertainment Corporation intranet website.
14. Litigation And Regulatory Cooperation. During the Term of Employment and continuing thereafter upon termination of employment, Executive shall reasonably cooperate with the Company and its Subsidiaries and Affiliates in the defense or prosecution of any claims or actions now in existence or that may be brought or threatened in the future against or on behalf of any of the Company, its Subsidiaries, Affiliates, divisions, successors, and assigns, about which the Company believes Executive may have relevant information. Executive’s cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company, its Subsidiaries, Affiliates, successors and assigns at mutually convenient times. Executive also shall cooperate fully with the Company in connection with any investigation or review by any federal, state, or local regulatory authority as any such investigation or review
15 |
|
relates to events or occurrences that transpired while Executive was employed by the Company; provided, that, the Company will reimburse Executive for Executive’s reasonable travel expenses incurred with respect to such cooperation. The Company shall attempt to schedule such cooperation at mutually convenient times and places, taking into account Executive’s other personal and professional obligations.
15. Resolution of Disputes. Any dispute arising in connection with the validity, interpretation, enforcement, or breach of this Agreement or arising out of Executive’s employment or termination of employment with the Company; under any statute, regulation, ordinance or the common law; or otherwise arising between Executive, on the one hand, and the Company or any of its Subsidiaries or Affiliates, on the other hand, the Parties, shall (except to the extent otherwise provided in Section 10(i) with respect to certain requests for injunctive relief) be submitted to binding arbitration before the American Arbitration Association (“AAA”) for resolution. Such arbitration shall be conducted in Las Vegas, Nevada, and the arbitrator will apply the law of the jurisdiction as provided in Section 17(h), below, including federal law as applied in the courts in the jurisdiction specified in Section 17(h). The arbitration shall be conducted in accordance with the AAA’s Employment Arbitration Rules, as modified by the terms set forth in this Agreement. The arbitration will be conducted by a single arbitrator, who shall be an attorney who specializes in the field of employment law and shall have prior experience arbitrating employment disputes. The Company will pay the fees and costs of the Arbitrator and/or the AAA, except that Executive will be responsible for paying the applicable filing fee not to exceed the fee that Executive would otherwise pay to file a lawsuit asserting the same claim in court. The arbitrator shall not have the authority to modify the terms of this Agreement except to the extent that the Agreement violates any governing statue, in which case the arbitrator may modify the Agreement solely as necessary to not conflict with such statute. The Arbitrator shall have the authority to award any remedy or relief that could a court in the jurisdiction specified in Section 17(h) could grant in conformity with the applicable law on the basis of claims actually made in the arbitration. The Arbitrator shall render an award and written opinion which shall set forth the factual and legal basis for the award. The award of the arbitrator shall be final and binding on the Parties, and judgment on the award may be confirmed and entered in any state or federal court located in the jurisdiction specified in Section 17(h). The arbitration shall be conducted on a strictly confidential basis, and Executive shall not disclose the existence of a claim, the nature of a claim, any documents, exhibits, or information exchanged or presented in connection with any such a claim, or the result of any arbitration (collectively, “Arbitration Materials”), to any third party, with the sole exception of Executive’s legal counsel, who Executive shall ensure adheres to all confidentiality terms in this Agreement. In the event of any court proceeding to challenge or enforce an arbitrator’s award, the Parties hereby consent to the exclusive jurisdiction of the state and federal courts in the jurisdiction specified in Section 17(h) and agree to venue in that jurisdiction. The Parties agree to take all steps necessary to protect the confidentiality of the Arbitration Materials in connection with any such proceeding, agree to file all Confidential Information (and documents containing Confidential Information) under seal to the extent possible, and agree to the entry of an appropriate protective order encompassing the confidentiality terms of this Agreement. Each party agrees to pay its own costs and fees in connection with any arbitration of a dispute arising under this Agreement, and any court proceeding arising therefrom, regardless of outcome. To
16 |
|
the extent any dispute is found not to be subject to this arbitration provision, both Executive and Company hereby waive their respective rights to trial by jury.
EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS CAREFULLY READ THIS SECTION 15, VOLUNTARILY AGREES TO ARBITRATE ALL DISPUTES, AND HAS HAD THE OPPORTUNITY TO REVIEW THE PROVISIONS OF SECTION 15 WITH ANY ADVISORS AS EXECUTIVE CONSIDERED NECESSARY. BY SIGNING BELOW, EXECUTIVE SIGNIFIES EXECUTIVE’S UNDERSTANDING AND AGREEMENT TO SECTION 15.
16. Notices. Any written notice required to be provided by the Company to the Executive, or by the Executive to the Company, pursuant to this Agreement shall be delivered, and receipt shall be deemed effective, as follows:
|
If to the Company: |
|
Caesars Enterprise Services, LLC One Caesars Palace Drive Las Vegas, Nevada 89109 Phone: 702-407-6300 Attention: General Counsel
Such notice must be sent by a nationally recognized overnight courier. Delivery to the Company shall be deemed effective two days after the notice is given to the overnight courier for delivery. |
|
|
|
|
|
If to Executive: |
(i) Hand delivered to the Executive (in which case delivery shall be deemed effective at the moment notice is handed to the Executive); or (ii) sent by a nationally recognized overnight courier to the address of Executive’s principal residence as it appears in the Company’s records. Delivery to the Executive shall be deemed effective two days after the notice is given to the overnight courier for delivery. Nothing in the foregoing provision is intended to alter the company’s right to terminate Executive’s employment immediately for Cause orally or by other means, as set forth in Sections 7(c) and 8 above. | |
|
|
|
|
|
If to a beneficiary, heir or executor: |
Sent by a nationally recognized overnight courier to the address most recently specified by Executive, beneficiary, or executor. Delivery shall be deemed effective two days after the notice is given to the overnight courier. |
17. Miscellaneous.
(a) Entire Agreement. This Agreement, including its Exhibits A, B, C, and D contains the entire understanding and agreement among the Parties concerning the subject matter hereof and supersedes all prior agreements, understandings, discussions, negotiations, and undertakings, whether written or oral, among them with respect thereto.
17 |
|
(b) Amendment or Waiver. No provision in this Agreement may be amended unless such amendment is set forth in a writing that specifically identifies the provision being amended and that is signed by Executive and the CEO or Company General Counsel. No waiver by any Person of any breach of any condition or provision contained in this Agreement shall be deemed a waiver of any similar or dissimilar condition or provision at the same or any prior or subsequent time.
(c) Headings. The headings of the Sections and sub-sections contained in this Agreement are for convenience only and shall not be deemed to control or affect the meaning or construction of any provision of this Agreement.
(d) Beneficiaries/References. Executive shall be entitled, to the extent permitted under applicable law, to select and change a beneficiary or beneficiaries to receive any compensation or benefit under this Agreement in the event of Executive’s death by giving the Company written notice thereof. In the event of Executive’s death or a judicial determination of Executive’s incompetence, references in this Agreement to Executive shall be deemed, where appropriate, to refer to Executive’s beneficiary, estate or other legal representative.
(e) Survivorship. Except as otherwise set forth in this Agreement, the respective rights and obligations of the Parties hereunder shall survive any termination of Executive’s employment under this Agreement. Additionally, if any provision of this Agreement is deemed unenforceable for any reason by a court of competent jurisdiction, the remaining provisions in this Agreement shall survive and remain valid and enforceable.
(f) Withholding Taxes. The Company may withhold from any amounts or benefits payable under this Agreement, including its Exhibit B, C and Exhibit D, any taxes that are required to be withheld pursuant to any applicable law or regulation.
(g) 409A Provisions. Notwithstanding anything herein to the contrary, this Agreement is intended to be interpreted and applied so that the payment of the benefits set forth herein either shall either be exempt from the requirements of Section 409A of the Code, or shall comply with the requirements of such provision. Notwithstanding any provision in this Agreement or elsewhere to the contrary, if Executive is a “specified employee” within the meaning of Section 409A of the Code as of the Date of Termination, any payments or benefits due upon a termination of Executive’s employment under any arrangement that constitutes a “deferral of compensation” within the meaning of Section 409A of the Code and which do not otherwise qualify under the exemptions under Treas. Regs. Section 1.409A-1 (including without limitation, the short-term deferral exemption and the permitted payments under Treas. Regs. Section 1.409A-1(b)(9)(iii)(A)), shall be delayed and paid or provided within thirty (30) days following the earlier of (i) the date which is six (6) months after Executive’s separation from service (as defined in Section 409A of the Code and the regulations and other published guidance thereunder) for any reason other than death, and (ii) the date of Executive’s death. Notwithstanding anything in this Agreement or elsewhere to the contrary, distributions upon termination of Executive’s employment may only be made upon a “separation from service” as determined under Section 409A of the Code and such date shall be the Date of Termination for
18 |
|
purposes of this Agreement. Each separately identified amount to which Executive is entitled under this Agreement or otherwise shall be treated as a separate payment for purposes of Section 409A of the Code. In addition, to the extent possible under Section 409A of the Code, any series of installment payments under this Agreement shall be treated as a right to a series of separate payments. In no event may Executive, directly or indirectly, designate the calendar year of any payment to be made under this Agreement or otherwise if such designation would constitute a “deferral of compensation” within the meaning of Section 409A of the Code. All reimbursements and in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A of the Code. To the extent that any reimbursements pursuant to this Agreement or otherwise are taxable to Executive, any reimbursement payment due to Executive shall be paid to Executive on or before the last day of Executive’s taxable year following the taxable year in which the related expense was incurred; provided, that, Executive has provided the Company written documentation of such expenses in a timely fashion and such expenses otherwise satisfy the Company’s expense reimbursement policies. Reimbursements pursuant to this Agreement or otherwise are not subject to liquidation or exchange for another benefit and the amount of such reimbursements that Executive receives in one taxable year shall not affect the amount of such reimbursements that Executive receives in any other taxable year. Notwithstanding any of the foregoing to the contrary, the Company and its officers, directors, employees, agents, and representatives make no guarantee or representation that the payments or benefits provided under this Agreement comply with, or are exempt from, the provisions of Section 409A of the Code, and none of the foregoing shall have any liability or other obligation to indemnify or hold harmless Executive or any beneficiary of Executive for any Tax, additional tax, interest or penalties that Executive or any beneficiary of Executive may incur in the event that any provision of this Agreement, or any amendment or modification thereof, or any other action taken with respect thereto, is deemed to violate any of the requirements of Section 409A of the Code.
(h) Governing Law. This Agreement shall be governed, construed, performed and enforced in accordance with its express terms, and otherwise in accordance with the laws of the State of Nevada applicable to contracts to be performed therein.
(i) Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall be deemed to be one and the same instrument.
(j) Construction. This Agreement shall not be construed against either Party, and no consideration shall be given or presumption made on the basis of who drafted the Agreement or any particular provision hereof or who supplied the form of this Agreement. In construing the Agreement, (i) examples shall not be construed to limit, expressly or by implication, the matter they illustrate, (ii) the connectives “and,” “or,” and “and/or” shall be construed either disjunctively or conjunctively so as to construe a sentence or clause most broadly and bring within its scope all subject matter that might otherwise be construed to be outside of its scope; (iii) the word “includes” and its derivatives means “includes, but is not limited to” and corresponding derivative expressions, (iv) a defined term has its defined meaning throughout the
19 |
|
Agreement, whether it appears before or after the place where it is defined, and (v) the headings and titles herein are for convenience only and shall have no significance in the interpretation hereof.
(k) Third Party Beneficiaries. The parties agree that each of the Company’s Affiliates and Subsidiaries are intended third party beneficiaries of this Agreement and shall have the authority to enforce the provisions applicable to them in accordance with the terms of hereof.
20 |
(l) Expenses. Each party shall pay all costs and expenses that it incurs with respect to the negotiation, execution, delivery, and performance of the Agreement.
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first set forth above.
|
|
CAESARS ENTERPRISE SERVICES, LLC |
|
|
|
|
|
|
|
|
|
|
|
By: /s/ Mark Frissora |
|
|
|
Name: Mark Frissora Title: President & Chief Executive Officer |
|
|
|
Executive
|
|
|
|
/s/ Monica Digilio |
|
|
|
Monica Digilio |
|
21 |
EXHIBIT A
· | Board Member, The Arthur Lee Foundation |
|
|
· |
Advisory Board Member - Leland C. and Mary M. Pillsbury Institute for Entrepreneurship, Cornell University School of Hospitality Management |
22 |
EXHIBIT B
SEPARATION AGREEMENT AND RELEASE
In consideration of and in accordance with the _______________ Employment Agreement by and between Executive and Caesars Enterprise Services, LLC with offices at One Caesars Palace Drive, Las Vegas, Nevada 89109 (together with its successors and assigns, the “Company”) (“Employment Agreement”), of which this Exhibit B is part, Monica Digilio (“Executive”) hereby agrees as follows. All terms not defined in this Separation Agreement and Release (“Separation Agreement”) shall have the same meanings as those set forth in the Employment Agreement.
1. Consideration. Executive acknowledges and agrees that the payments and benefits paid or granted to Executive under the Employment Agreement (the “Consideration Amounts”), including but not limited to Section 9, thereof, represent good, valuable, and sufficient consideration for signing this Separation Agreement, and exceed any amounts or interests to which Executive otherwise would be entitled. Executive acknowledges and agrees that except as specifically provided in this Separation Agreement, the Company shall have no other obligations or liabilities, monetary or otherwise, to Executive following the date hereof (the “Effective Date”) and that the payments and benefits contemplated herein constitute a complete settlement, satisfaction, and waiver of any and all claims Executive may have against the Company.
2. Release of Claims.
(a) Executive, for Executive, Executive’s spouse, and each of Executive’s heirs, beneficiaries, representatives, agents, successors, and assigns (collectively, “Executive Releasors”), irrevocably and unconditionally releases and forever discharges the Company, each and all of its predecessors, parents, Subsidiaries, Affiliates, divisions, successors, and assigns (collectively with the Company, the “Company Entities”), and each and all of the Company Entities’ current and former officers, directors, employees, shareholders, representatives, attorneys, agents, and assigns (collectively, with the Company Entities, the “Company Releasees”), from any and all causes of action, claims, actions, rights, judgments, obligations, damages, demands, accountings, or liabilities of any kind or character, whether known or unknown, whether accrued or contingent, that Executive has, had, or may have against them, or any of them, by reason of, arising out of, connected with, touching upon, or concerning Executive’s employment with the Company, Executive’s separation from the Company, and Executive’s relationship with any or all of the Company Releasees, and from any and all statutory claims, regulatory claims, claims under the Employment Agreement, and any and all other claims or matters of whatever kind, nature, or description, arising from the beginning of the world up through the Separation Agreement Effective Date (as defined below) (collectively, the “Released Claims”). Executive acknowledges that the Released Claims specifically include, but are not limited to, any and all claims for fraud, breach of express or implied contract, breach of the implied covenant of good faith and fair dealing, interference with contractual rights, violation of public policy, invasion of privacy, intentional or negligent infliction of emotional distress, intentional or negligent misrepresentation, defamation, libel, slander, or breach of privacy; claims for failure to pay wages, benefits, deferred compensation, commissions, bonuses, vacation pay, expenses, severance pay, attorneys’ fees, or other compensation of any sort; claims related to stock options, equity awards, or other grants, awards, or warrants; claims related to any tangible or intangible property of Executive that remains with the Company; claims for retaliation, harassment or discrimination on the basis of race, color, sex, sexual orientation, national origin, ancestry, religion, age, disability, medical condition, marital status, gender identity, gender expression, or any other characteristic or criteria protected
23 |
|
by law; any claim under Title VII of the Civil Rights Act of 1964 (Title VII, as amended), 42 U.S.C. §§ 2000e, et seq., the Civil Rights Act of 1991, the Civil Rights Act of 1866, the Family and Medical Leave Act (“FMLA”), 29 U.S.C. §§ 2601, et seq., the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 201, et seq., the Equal Pay Act, 29 U.S.C. §206(a) and interpretive regulations, the Americans with Disabilities Act (“ADA”), 42 U.S.C. §§ 12101, et seq., the Consolidated Omnibus Budget Reconciliation Act of 1986 (“COBRA”), the Occupational Safety and Health Act (“OSHA”) or any other health and/or safety laws, statutes, or regulations, the Uniformed Services Employment and Reemployment Rights Act (“USERRA”), 38 U.S.C. §§ 4301-4333, the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. §§ 301, et seq., the Immigration Reform and Control Act of 1986, 8 U.S.C. §§ 1101, et seq., or the Internal Revenue Code of 1986, as amended, the Worker Adjustment and Retraining Notification Act; all claims arising under the Sarbanes-Oxley Act of 2002 (Public Law 107-204), including whistleblowing claims under 18 U.S.C. §§ 1513(e) and 1514A; the Nevada Wage and Hour Laws, NEV. REV. STAT. § 608.005, et seq., the Nevada Fair Employment Practices Act. NEV. REV. STAT. § 613.310 et seq., and any and all other foreign, federal, state, or local laws, common law, or case law, including but not limited to all statutes, regulations, common law, and other laws in place in Clark County, Nevada. Notwithstanding the foregoing, Executive understands that she has not released any claim or right which a statute provides may not be released under any circumstances or any rights to vested benefits under any Company plan. Executive further understands that nothing contained in this agreement limits Executive’s ability to file a charge or complaint with the U.S. Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state or local governmental agency or commission (government agencies). Executive further understands that this Agreement does not limit Executive’s ability to communicate with any government agencies or otherwise participate in any investigation or proceeding that may be conducted by any government agency, including providing documents or other information, without notice to the Company. This Agreement does not limit Executive’s right to receive an award for information provided to any government agencies. Moreover, this Agreement does not release Executive’s rights to enforce the terms of this Agreement, Executive’s rights to indemnification and D&O coverage or Executive’s rights as a shareholder of the Company.
(b) Executive acknowledges that there is a risk that after the execution of this Separation Agreement, Executive will incur or suffer damage, loss, or injury that is in some way caused by or connected with Executive’s employment with the Company or its Subsidiaries or Affiliates or Executive’s separation from the Company or its Subsidiaries or Affiliates, and any relationship with or membership or investment in the Company Releasees, but that is unknown or unanticipated at the time of execution of this Separation Agreement. Executive specifically assumes that risk, and agrees that this Separation Agreement and the Released Claims apply to all unknown or unanticipated, accrued or contingent claims and all matters caused by or connected with Executive’s employment with the Company or its Subsidiaries or Affiliates and/or Executive’s separation from the Company or its Subsidiaries or Affiliates, as well as those claims currently known or anticipated. Executive acknowledges and agrees that this Separation Agreement constitutes a knowing and voluntary waiver of any and all rights and claims Executive does or may have as of the Separation Agreement Effective Date. Executive acknowledges that Executive has waived rights or claims pursuant to this Separation Agreement in exchange for consideration, the value of which exceeds payment or remuneration to which Executive otherwise would be entitled.
24 |
|
(c) To the extent permitted by law, Executive agrees never to file a lawsuit or other adversarial proceeding with any court or arbitrator against the Company or any other Company Releasee asserting any Released Claims. Executive represents and agrees that, prior to signing this Separation Agreement, Executive has not filed or pursued any complaints, charges, or lawsuits of any kind with any court, governmental or administrative agency, arbitrator, or other forum against the Company or any of the other Company Releasees, asserting any claims whatsoever. Executive understands and acknowledges that, in the event Executive files an administrative charge or commences any proceeding with respect to any Released Claim, or in the event another person or entity does so in whole or in part on Executive’s behalf, Executive waives and is estopped from receiving any monetary award or other legal or equitable relief in connection with any such proceeding.
(d) Executive represents and warrants that Executive has not assigned, transferred, or permitted the subrogation of any of Executive’s rights, claims, and/or causes of action, including any claims referenced in this Separation Agreement, or authorized any other person or entity to assert any such claim or claims on Executive’s behalf, and Executive agrees to indemnify and hold harmless the Company against any assignment, transfer, or subrogation of said rights, claims, and/or causes of action
3. Survival. The following Sections of the Employment Agreement shall remain in full force and effect following the Termination Date: Section 5 (“Claw-Back”), Section 9 (“Compensation Upon Termination”), Section 10 (“Restrictive Covenants and Confidentiality”), Section 11 (“Assignability; Binding Nature”), Section 13 (“Compliance”), Section 14 (“Litigation And Regulatory Cooperation”), Section 15 (“Resolution of Disputes”), Section 16 (“Notices”), and Section 17 (“Miscellaneous”). Any disputes arising in connection with this Separation Agreement or otherwise arising between any of Executive Releasors, on the one hand, and any of the Company Releasees, on the other hand, shall be resolved in accordance with Sections 10 and 15 of the Employment Agreement.
4. Tax Liability. Executive expressly acknowledges that neither the Company nor its attorneys have made any representations to Executive regarding the tax consequences of the consideration provided to Executive pursuant to this Separation Agreement and Section 9 of the Employment Agreement. It is the intention of the parties to this Separation Agreement that no payments made under this Separation Agreement and/or Section 9 of the Employment Agreement be subject to the additional tax on deferred compensation imposed by Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), but Company does not guarantee that any such payment complies with or is exempt from Code Section 409A. Each payment made under this Separation Agreement or Section 9 of the Employment Agreement will be treated as a separate payment for purposes of Code Section 409A and the right to a series of installment payments under this Separation Agreement is to be treated as a right to a series of separate payments.
5. Knowing/Voluntary Waiver.
(a) Executive is entitled to consider the terms of this Separation Agreement for twenty-one (21) days before signing it. If Executive fails to execute this Separation Agreement within this twenty-one (21) day period, this Separation Agreement will be null and void and of no force or effect. To execute this Separation Agreement, Executive must sign and date the Separation Agreement below, and return a signed copy hereof to Attn: Corporate Compensation, Caesars Enterprise Services, LLC, One Caesars Palace Drive, Las Vegas, Nevada 89109, (phone):702-880-6829, compensationrequests@caesars.com, via nationally recognized overnight carrier or email.
25 |
|
(b) Executive may revoke this Separation Agreement within seven (7) days of Executive’s signing it by delivering a written notice of such revocation to Attn: Corporate Compensation, Caesars Enterprise Services, LLC, One Caesars Palace Drive, Las Vegas, Nevada 89109, (phone): 702-880-6829, compensationrequests@caesars.com, via nationally recognized overnight carrier or email. If Executive revokes this Separation Agreement within seven (7) days of signing it, this Separation Agreement and the promises contained herein or in Section 9 of the Employment Agreement automatically will be null and void. If Executive signs this Separation Agreement and does not revoke this Separation Agreement within seven (7) days of signing it, this Separation Agreement shall become binding, effective, and irrevocable on the eighth (8th) day after the Separation Agreement is executed by both parties (the “Separation Agreement Effective Date”).
(c) Executive acknowledges that Executive (a) has carefully read this Separation Agreement and the Employment Agreement; (b) is competent to manage Executive’s own affairs; (c) fully understands the Separation Agreement’s and Employment Agreement’s contents and legal effect, and understands that Executive is giving up any legal claims Executive has against any of the Company Releasees, including but not limited to any and all legal rights or claims under the Age Discrimination in Employment Act of 1967 (“ADEA”) (29 U.S.C. § 626, as amended), and all other federal, state, foreign, and local laws regarding age discrimination, whether those claims are presently known or hereafter discovered; (d) has been advised to consult with an attorney of Executive’s choosing prior to signing this Separation Agreement, if Executive so desires; and (e) has chosen to enter into this Separation Agreement freely, without coercion, and based upon Executive’s own judgment, and that Executive has not relied upon any promises made by any of the Company Releasees, other than the promises explicitly contained in this Separation Agreement.
6. Miscellaneous.
This Separation Agreement may be executed in counterparts, each of which shall be deemed an original, and both of which together shall constitute one and the same instrument. The section headings in this Separation Agreement are provided for convenience only and shall not affect the construction or interpretation of this Separation Agreement or the provisions hereof.
This Separation Agreement shall not in any way be construed as an admission that the Company, Executive, or any other individual or entity has any liability to or acted wrongfully in any way with respect to Executive, the Company, or any other person.
This Separation Agreement shall not be construed against either Party, and no consideration shall be given or presumption made on the basis of who drafted the Separation Agreement or any particular provision hereof or who supplied the form of this Separation Agreement. In construing the Separation Agreement, (i) examples shall not be construed to limit, expressly or by implication, the matter they illustrate, (ii) the connectives “and,” “or,” and “and/or” shall be construed either disjunctively or conjunctively so as to construe a sentence or clause most broadly and bring within its scope all subject matter that might otherwise be construed to be outside of its scope; (iii) the word “includes” and its derivatives means “includes, but is not limited to” and corresponding derivative expressions, (iv) a defined term has its defined meaning throughout the Separation Agreement, whether it appears before or after the place where it is defined, and (v) the headings and titles herein are for convenience only and shall have no significance in the interpretation hereof.
26 |
|
The parties agree that each of the Company Releasees is an intended third party beneficiary of this Separation Agreement and shall have the authority to enforce the provisions applicable to it, her, or Executive in accordance with the terms of hereof.
7. Entire Agreement. Except as otherwise specifically provided herein, this Separation Agreement constitutes the entire agreement of the Parties with respect to the subject matter hereof, contains all the covenants, promises, representations, warranties, and agreements between the Parties with respect to Executive’s separation from the Company and all positions therewith; provided, however, that nothing in this Agreement shall supersede the Sections in the Employment Agreement identified in Paragraph 3 (“Survival”) of this Separation Agreement. Any modification of this Separation Agreement will be effective only if it is in writing and signed by Executive and the Chief Executive Officer or General Counsel of the Company.
IN WITNESS WHEREOF, the parties hereto have executed this General Release on this ___ day of _______________.
|
|
CAESARS ENTERPRISE SERVICES, LLC |
|
|
|
|
|
|
|
EXHIBIT ONLY - NOT FOR EXECUTION |
|
|
|
|
|
|
|
By: |
|
|
|
Name: NAME Title: TITLE |
|
|
|
Executive
|
|
|
|
EXHIBIT ONLY - NOT FOR EXECUTION |
|
|
|
|
|
|
|
NAME |
|
|
|
|
|
Exhibit C
· |
Medical Insurance (including health, dental and vision) |
|
|
· |
Disability and Life and Accidental Death and Dismemberment Insurance |
|
|
· |
Accrued benefits under Savings and Retirement Plan |
27 |
EXHIBIT D
CAESARS ENTERTAINMENT CORPORATION
2017 PERFORMANCE INCENTIVE PLAN
RESTRICTED STOCK UNIT AWARD AGREEMENT
THIS RESTRICTED STOCK UNIT AWARD AGREEMENT (the “Agreement”) is
made by and between Caesars Entertainment Corporation, a Delaware corporation (the “Corporation”), and Monica Digilio (“Participant”) on the date set forth on the final page of this Agreement. Any capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in the Plan.
WHEREAS, the Corporation has adopted the Caesars Entertainment Corporation 2017 Performance Incentive Plan (as the same may be amended from time to time in accordance with its terms, the “Plan”), pursuant to which Restricted Stock Units may be granted; and
WHEREAS, the Administrator has determined that it is in the best interests of the Corporation and its stockholders to grant the Restricted Stock Units provided for herein to Participant subject to the terms set forth herein.
NOW, THEREFORE, the parties hereto, for themselves, their successors and assigns, hereby agree as follows:
1. Grant of Restricted Stock Units.
(a) Grant. The Corporation hereby grants to Participant, on the Date of Grant (set forth on the final page of this Agreement) the number of Restricted Stock Units set forth on the final page of this Agreement (the “RSUs”), on the terms and conditions set forth in this Agreement and as otherwise provided in the Plan. Each RSU represents the right to receive payment in respect of one share of Common Stock of the Corporation (a “Share”) as of the Settlement Date (as defined below), subject to the terms of this Agreement and the Plan. The RSUs are subject to the restrictions described herein, including forfeiture under the circumstances described in Section 4 hereof. The RSUs shall vest and become nonforfeitable in accordance with Section 2 and Section 4 hereof.
(b) Incorporation by Reference, Etc. The provisions of the Plan are hereby incorporated herein by reference. Except as otherwise expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any interpretations, amendments, rules and regulations promulgated by the Administrator from time to time pursuant to the Plan. The Administrator shall have final authority to interpret and construe the Plan and this Agreement and to make any and all determinations under them, and its decisions shall be binding and conclusive upon Participant and his or her legal representative in respect of any questions arising under the Plan or this Agreement.
(c) Acceptance of Agreement. In order to accept this Agreement, Participant must indicate acceptance of the RSUs and acknowledgment that the terms of the Plan and this
28 |
|
Agreement have been read and understood by signing and returning a copy of this Agreement as instructed by the Corporation. By accepting this Agreement, Participant consents to the electronic delivery of prospectuses, annual reports and other information required to be delivered by Securities and Exchange Commission rules (which consent may be revoked in writing by Participant at any time upon three business days’ notice to the Corporation, in which case subsequent prospectuses, annual reports and other information will be delivered in hard copy to Participant).
2. Vesting. Except as may otherwise be provided herein, subject to Participant’s continued employment with the Corporation or one of its Subsidiaries (in accordance with Section 4 herein and the terms of the Plan), the RSUs shall become vested on the dates set forth on the final page of this Agreement.
3. Settlement. The obligation to make payments and distributions with respect to RSUs shall be satisfied through the issuance of one Share for each vested RSU (the “settlement”), and the settlement of the RSUs may be subject to such conditions, restrictions and contingencies as the Administrator shall determine. The RSUs shall be settled as soon as practicable after the RSUs vest, but in no event later than March 15 of the year following the calendar year in which the RSUs vested (as applicable, the “Settlement Date”). The payment dates set forth in this Section 3 have been specified for the purpose of causing the RSUs to be exempt from the provisions of Section 409A of the Code.
4. Termination of Employment or Service. Except as otherwise provided in an employment agreement (or similar agreement) between Participant and the Corporation or any of its Subsidiaries in effect on the Date of Grant, if Participant’s employment or service with the Corporation or any Subsidiary, as applicable, terminates for any reason, then the unvested portion of the RSUs shall be cancelled immediately and Participant shall immediately forfeit any rights to the RSUs subject to such unvested portion.
5. Adjustments; Acceleration.
(a) Adjustments. In the event of any change in the outstanding Shares by reason of a recapitalization, reclassification, reorganization, stock split, reverse stock split, combination of shares, stock dividend, extraordinary dividend distribution or other transaction set forth in Section 7.1 of the Plan or a similar transaction, the Administrator shall adjust, in a manner deemed equitable by the Administrator in accordance with the terms of Plan, in its sole discretion, the number of RSUs held by Participant under this Agreement.
(b) Acceleration of Vesting. In the event of a transaction described in Section 7.2 of the Plan, the Administrator shall cause the vesting date of the RSUs to accelerate in accordance with the requirements of Section 7.2 of the Plan.
6. No Rights as a Stockholder. Except as set forth in the Plan, neither Participant nor any person claiming through Participant shall be, or have any rights or privileges of, a stockholder of the Corporation in respect of shares issuable pursuant to RSUs granted hereunder until the Shares have been delivered to Participant.
29 |
7. Compliance with Legal Requirements.
(a) Generally. The granting and settlement of the RSUs, and any other obligations of the Corporation under this Agreement, shall be subject to all applicable federal, provincial, state, local and foreign laws, rules and regulations and to such approvals by any regulatory or governmental agency as may be required. The Administrator shall have the right to impose such restrictions or delay the settlement of the RSUs as it deems necessary or advisable under applicable federal securities laws, the rules and regulations of any stock exchange or market upon which the Shares are then listed or traded, and/or any blue sky or state securities laws applicable to the Shares; provided that any settlement shall be delayed only until the earliest date on which settlement would not be so prohibited. Participant agrees to take all steps the Administrator or the Corporation determines are necessary to comply with all applicable provisions of federal and state securities law in exercising his or her rights under this Agreement.
(b) Tax Withholding. All distributions under the Plan shall be subject to Participant satisfying any applicable federal, state, local and foreign tax withholding obligations. The Corporation shall have the power and the right to require Participant to remit to the Corporation or deduct or withhold from all amounts payable to Participant in connection with the RSUs or otherwise, an amount sufficient to satisfy any applicable taxes allowed by law. Further, the Corporation may permit or require Participant to satisfy, in whole or in part, the tax obligations by withholding Shares that would otherwise be received upon settlement of the RSUs.
8. Miscellaneous.
(a) Transferability. The RSUs may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant other than by will or by the laws of descent and distribution, pursuant to a qualified domestic relations order if approved or ratified by the Administrator or as otherwise permitted under Section 5.7.2 or 5.7.3 of the Plan.
(b) Waiver. Any right of the Corporation contained in this Agreement may be waived in writing by the Administrator. No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages. No waiver by any party of any breach of this Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach.
(c) Section 409A. It is intended that any amounts payable under this Agreement shall either be exempt from or comply with Section 409A of the Code and all regulations, guidance and other interpretive authority issued thereunder (“Code Section 409A”) so as not to subject the Participant to payment of any additional tax, penalty or interest imposed under Code Section 409A and any ambiguities herein shall be interpreted to so comply. Notwithstanding the foregoing or any provision of the Plan or this Agreement, if any provision of the Plan or this Agreement contravenes Code Section 409A or could cause Participant to incur any tax, interest or penalties under Code Section 409A , the Administrator may, in its sole discretion and without Participant’s consent, modify such provision to (i) comply with, or avoid being subject to, Code Section 409A , or to avoid the incurrence of taxes, interest and penalties under Code Section
30 |
409A, and/or (ii) maintain, to the maximum extent practicable, the original intent and economic benefit to Participant of the applicable provision without materially increasing the cost to the Corporation or contravening the provisions of Code Section 409A. This Section 8(c) does not create an obligation on the part of the Corporation to modify the Plan or this Agreement and does not guarantee the tax treatment of the RSUs. Notwithstanding any other provision of the Plan or this Agreement to the contrary, if any payment hereunder is subject to Code Section 409A and (A) such payment is to be paid or provided on account of Participant’s termination of employment (or other separation from service), (B) Participant is a specified employee (within the meaning of Section 409A(a)(2)(B) of the Code), and (C) such payment is required to be made or provided prior to the first day of the seventh month following Participant’s separation from service or termination of employment, then such payment shall be delayed until the first day of the seventh month following Participant’s termination of employment (or other or separation from service). For purposes of applying the requirements of Code Section 409A, the determination as to whether Participant has had a termination of employment (or separation from service) shall be made in accordance with the provisions of Code Section 409A and the guidance issued thereunder without application of any alternative levels of reductions of bona fide services permitted thereunder.
(d) Notices. Any written notices provided for in this Agreement or the Plan shall be in writing and shall be deemed sufficiently given if either hand delivered or if sent by fax, pdf/email or overnight courier, or by postage paid first class mail. Notices sent by mail shall be deemed received three business days after mailing but in no event later than the date of actual receipt. Notices shall be directed, if to Participant, at Participant’s address indicated by the Corporation’s records, or if to the Corporation, to the Corporation’s principal business office.
(e) Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.
(f) No Rights to Employment. Nothing contained in this Agreement shall be construed as giving Participant any right to be retained, in any position, as an employee, consultant or independent contractor of the Corporation or its Subsidiaries or shall interfere with or restrict in any way the right of the Corporation or its Subsidiaries, which are hereby expressly reserved, to remove, terminate or discharge Participant at any time for any reason whatsoever.
(g) No Rights to Award. The grant to Participant of the RSUs pursuant to this Agreement shall not give Participant any claim or rights to be granted any future award or additional awards under the Plan, subject to any express contractual rights (set forth in a document other than the Plan and this Agreement) to the contrary.
(h) Fractional Shares. No fractional shares shall be delivered under this Agreement. In lieu of issuing a fraction of a share in settlement of vested RSUs, the Corporation shall be entitled to pay to Participant an amount in cash equal to the fair market value (as defined in the Plan) of such fractional share.
31 |
(i) Beneficiary. Participant may file with the Administrator a written designation of a beneficiary on such form as may be prescribed by the Administrator and may, from time to time, amend or revoke such designation. If no validly designated beneficiary survives Participant, Participant’s estate shall be deemed to be Participant’s beneficiary.
(j) Bound by Plan. By signing this Agreement, Participant acknowledges that Participant has received a copy of the Plan and has had an opportunity to review the Plan and agrees to be bound by all the terms and provisions of the Plan.
(k) Successors. The terms of this Agreement shall be binding upon and inure to the benefit of the Corporation and its successors and assigns, and of Participant and the beneficiaries, executors, administrators, heirs and successors of Participant.
(l) Entire Agreement. This Agreement and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto. No change, modification or waiver of any provision of this Agreement shall be valid unless the same be in writing and signed by the parties hereto, except for any changes permitted without consent under Section 8.6.4 of the Plan or Section 8(c) hereof.
(m) Governing Law. This Agreement shall be governed, construed and interpreted in accordance with the laws of the State of Delaware without regard to principles of conflicts of law thereof, or principles of conflicts of laws of any other jurisdiction which could cause the application of the laws of any jurisdiction other than the State of Delaware.
(n) Captions. The captions and headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement.
[Signatures on next page]
32 |
IN WITNESS WHEREOF, the Corporation and Participant have executed this Agreement as set forth below.
CAESARS ENTERTAINMENT CORPORATION
By___________________________________
Name: Russell Goldich
Title: SVP of Compensation & HR Analytics
Date:_________________________________
Agreed to and Accepted by:
_____________________________________
Date:_________________________________
Number of RSUs: To be determined based on Fair Market Value (FMV) of CZR stock as of September 24, 2018. Units granted shall be equal to $442,500 in total value divided by the FMV on the Date of Grant, rounded up to the nearest whole share.
Date of Grant: |
|
September 24, 2018 |
|
|
|
Vesting Schedule: |
|
The RSUs shall vest in equal increments on September 24, 2019, September 24, 2020, and September 24, 2021, subject to Participant’s continued employment or service with the Corporation or one of its Subsidiaries on such vesting date. |
33 |
Exhibit 10.94
Amendment No. 1 to Employment Agreement
This Amendment No. 1 (this “Amendment”) to the Employment Agreement (the “Agreement”), dated as of September 24, 2018, between Caesars Enterprise Services, LLC (the “Company”) and Monica Digilio (“Executive”) is effective as of December 12, 2018 (the “Amendment Effective Date”).
WHEREAS, in consideration of Executive’s service and in order to induce Executive to remain in the employ of the Company, the Company desires to provide Executive with certain incentives;
WHEREAS, Executive and the Company wish to amend the Agreement; and
WHEREAS, pursuant to Section 17(b) of the Agreement, any amendment to the Agreement must be made in writing signed by the parties thereto.
NOW THEREFORE, in consideration for the promises and the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged and intending to be legally bound hereby, the parties hereby agree as follows:
1. The following Section, Section 9(e) is added to read as follows:
(e) Vesting of Long Term Incentive Awards upon Certain Terminations. Notwithstanding anything to the contrary herein, in the event that (i) Executive’s employment is terminated by the Company without Cause, (ii) Executive resigns for Good Reason, (iii) Executive’s employment is terminated by reason of Executive’s death or (iv) Executive is terminated by the Company on account of Executive’s Disability, in each case at any time between the Amendment Effective Date and December 5, 2019, all outstanding awards under the Caesars Entertainment Corporation 2012 Performance Incentive Plan, the Caesars Entertainment Corporation 2017 Performance Incentive Plan, and any other Company long-term incentive program will immediately vest; provided, however, that such awards will be settled in accordance with the terms of the applicable award agreement or incentive plan; and provided, further, that in the case of any award that is subject to Section 409A of the Code, such award shall be settled in a manner consistent with the requirements with Section 409A of the Code and nothing herein shall be construed to change the payment timing of such award in violation of Section 409A of the Code. In addition, any outstanding stock options will remain exercisable until the second anniversary of such termination; provided, however, that in no event shall the exercise period extend beyond the original term of the option. Notwithstanding anything to the contrary herein, any performance-based long-term incentive awards that vest pursuant to this Section 9(e) will vest (if at all) based on actual performance through the end of the applicable performance period.
2. This Amendment shall in all respects be governed by and construed in accordance with the laws of the State of Nevada as to all matters, including but not limited to matters of validity, construction, effect and performance.
|
3. This Amendment may be executed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.
4. Except as specifically amended by this Amendment, the Agreement shall remain in full force and effect in accordance with its terms.
[SIGNATURE PAGE FOLLOWS]
2 |
|
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the Amendment Effective Date.
Caesars Enterprise Services, LLC | |||
By: | /s/Mark Frissora | ||
|
|
By: Mark Frissora | |
Title: Vice President & Chief Executive Officer | |||
|
|
|
|
|
|
/s/Monica Digilio |
|
|
|
Monica Digilio |
|
|
|
Executive |
|
3 |
Exhibit 10.95
EMPLOYMENT AGREEMENT
This Employment Agreement (“Agreement”) is entered into as of November 1, 2017 (the “Effective Date”), by and between Caesars Enterprise Services, LLC, with offices at One Caesars Palace Drive, Las Vegas, Nevada (together with its successors and assigns, the “Company”) and Christopher Holdren (“Executive”).
1. Term of Employment. The Company hereby agrees to employ Executive under this Agreement, and Executive hereby accepts such employment, for the Term of Employment. The Term of Employment shall commence as of the Effective Date and shall end on the fourth (4th) anniversary of the Effective Date unless terminated earlier by either party in accordance with Section 7 of this Agreement; provided that, on the fourth anniversary of the Effective Date and each anniversary of the Effective Date thereafter, the employment period shall be extended by one year unless, at least six (6) months prior to such anniversary, the Company or Executive delivers a written notice (a “Notice of Non-Renewal”) to the other party that the employment period shall not be so extended (the Initial Term as from time to time extended or renewed, the “Term of Employment”).
2. Position, Duties, and Responsibilities.
(a) During the Term of Employment, Executive shall serve as the Executive Vice President and Chief Marketing Officer, reporting directly to the President and Chief Executive Officer of the Company (the “CEO”), and shall perform such lawful duties as are specified from time to time by the Company. In this position, Executive shall be responsible for leading all marketing-related activities across the Company, its Subsidiaries (defined below), and its Affiliates (defined below) (collectively, the Company, Subsidiaries, and Affiliates are referred to herein as the “Enterprise”), including at all affiliated hotels, casinos, live entertainment venues, interactive online entertainment, and related business operations. This includes but is not limited to: leading the day-to-day oversight, budgeting, and strategic planning for all Enterprise marketing activities; designing compelling, brand enhancing customer experiences; maintaining and constantly improving the Enterprise’s competitive position through innovative marketing, strategy, and campaigning to enhance brand equity, initiatives, and products; developing segmentation, competitive analysis, market intelligence, prospecting, lead generation, product and market development, pricing, promotions, communications, and sales force effectiveness protocols to drive revenue retention and growth; serving as a member of the Company’s senior management team, and participating in the development of overall business strategy for the Enterprise; developing, measuring, and monitoring key metrics around the marketing function of the business; leading an organization with methods and actions that are ethical and in full compliance with all applicable laws, regulations, and Company policies; identifying compliance risks and taking actions necessary to eliminate or minimize risks; and creating a compliance culture within the organization and fostering an environment where employees feel comfortable reporting potential violations or misconduct. If at any time during the Term of Employment Executive voluntarily assumes and accepts a position other than Executive Vice President and Chief Marketing Officer for the Company, any of its Subsidiaries or any of its Affiliates, Executive expressly understands and agrees that this Section 2(a) is automatically modified to include those lawful duties for which Executive is responsible and those performance
1 |
|
responsibilities consistent with Executive’s new role as represented by, but not limited to, annual goals, financial performance metrics, and day-to-day oversight and supervision.
(b) During the Term of Employment, Executive shall perform Executive’s duties faithfully and to the best of Executive’s abilities and shall devote all of Executive’s business time and attention, on a full time basis (except as otherwise expressly permitted herein), to the business and affairs of the Company. Executive shall use Executive’s best efforts to advance the best interests of the Company and shall comply with all of the policies of the Company, including, without limitation, such policies with respect to legal compliance, conflicts of interest, confidentiality, insider trading, code of conduct and business ethics, and other employment-related policies as are from time to time in effect (collectively, and as amended or modified from time to time by the Company, the “Policies”).
(c) During the Term of Employment, Executive hereby agrees that Executive’s services will be rendered exclusively to the Company, and Executive shall not, except as set forth on Exhibit A attached hereto, directly or indirectly, render services to, or otherwise act in a business or professional capacity on behalf of or for the benefit of, any other Person (as defined below), whether as an employee, advisor, member of a board or similar governing body, sole proprietor, independent contractor, agent, consultant, volunteer, intern, representative, or otherwise, whether or not compensated. With respect to the positions listed on Exhibit A attached hereto, Executive may engage in such activities so long as such activities do not interfere with the proper performance of Executive’s duties and responsibilities hereunder and/or otherwise conflict with any of the Policies of the Company or otherwise violate the terms of this Agreement. Excepting the period following any Notice of Non-Renewal, during the Term of Employment, Executive further agrees that Executive shall not seek, solicit, or otherwise look for employment (whether as an employee, consultant, or otherwise) with any other Person (as defined below).
(d) Executive’s services hereunder shall be performed by Executive in the Company’s principal offices located in Clark County, Nevada or, such other location that serves as Executive’s primary office, if such other location is designated by the Company; provided, that, Executive may be required to travel for business purposes during the Term of Employment. The Company shall relocate Executive to Clark County, Nevada pursuant to the Company’s 1HA Relocation Plan.
(e) Upon expiration of the Term of Employment, the delivery of a Notice of Non-Renewal or the termination of Executive’s employment for any reason, upon the request of the Board or its designee, Executive shall be deemed to have resigned, in writing, from any positions Executive then holds with the Company and any of its Subsidiaries and Affiliates, including membership on any Company, Subsidiary or Affiliate boards unless otherwise determined by the Company. For purposes of this Agreement, (i) an “Affiliate” of the Company or any other Person (as defined below) shall mean a Person that directly or indirectly controls, is controlled by, or is under common control with, the Person specified; (ii) a “Subsidiary” of any Person shall mean any Person of which such Person owns, directly or indirectly, more than half of the equity ownership interests (measured either by value or by ability to elect or control the board of directors or other governing body); and (iii) a “Person” or “person” means any individual, partnership, limited partnership, corporation, limited liability company, trust, estate, cooperative,
2 |
|
association, organization, proprietorship, firm, joint venture, joint stock company, syndicate, company, committee, government or governmental subdivision or agency, or other entity, in each case, whether or not for profit.
3. Base Salary. During the Term of Employment, the Company shall pay Executive an annualized base salary of six hundred and seventy-five thousand dollars ($675,000), minus applicable deductions and withholdings (“Base Salary”), payable in accordance with the regular payroll practices applicable to executives of the Company. During the Term of Employment, the Base Salary shall be subject to annual review by the Company, in its sole discretion, for possible increase and any such increased Base Salary shall constitute “Base Salary” for purposes of this Agreement. Executive shall not be entitled to receive any additional consideration for service during the Term of Employment as a member of the Board or the board of any of the Company’s Subsidiaries or Affiliates.
4. Bonus. During the Term of Employment, Executive shall participate in the Company’s annual incentive bonus program(s) applicable to Executive’s position (the “AIP”) and be eligible to receive a bonus (the “Bonus”) based upon the achievement of business performance objectives as determined by the Board. The Bonus, if any, shall be paid in accordance with the terms of the AIP; provided, that, the Bonus shall not be considered earned for any purpose unless Executive is still employed by the Company on (and has not given or received a Notice of Termination (as defined below)) prior to the payment date. Executive shall have an annual bonus target of 75% of the Base Salary.
5. Claw-Back. Notwithstanding any provision in this Agreement to the contrary, amounts payable hereunder shall be subject to claw-back or disgorgement, to the extent applicable, under (A) the Policies or any claw-back policy adopted by the Company, (B) the Dodd-Frank Wall Street Reform and Consumer Protection Act, as amended, and rules, regulations, and binding, published guidance thereunder, which legislation provides for the clawback and recovery of incentive compensation in the event of certain financial statement restatements and (C) the Sarbanes–Oxley Act of 2002. If pursuant to Section 10D of the Securities Exchange Act of 1934, as amended (the “Act”), the Company (or any of its Subsidiaries or Affiliates) would not be eligible for continued listing, if applicable, under Section 10D(a) of the Act if it (or they) did not adopt policies consistent with Section 10D(b) of the Act, then, in accordance with those policies that are so required, any incentive-based compensation payable to Executive under this Agreement or otherwise shall be subject to claw-back in the circumstances, to the extent, and in the manner, required by Section 10D(b)(2) of the Act, as interpreted by rules of the Securities Exchange Commission. Nothing in this provision is intended to supersede any existing or future claw-back provision adopted or amended by the Company, including, but not limited to the provision set forth in the Company’s Omnibus Incentive Plan.
6. Other Benefits.
(a) LTI Grant. Executive will be eligible to participate in regular, periodic grants under the Company’s Long Term Incentive (“LTI”) Program. Executive understands and acknowledges that LTI grant(s) are subject to review, discretion, and approval of the Human Resources Committee of the Caesars Entertainment Corporation Board of Directors (the
3 |
|
“HRC”). LTI grants are subject to vesting schedules at the discretion of the HRC. Executive will have an annual equity grant target of 150% of Executive’s base salary based on value at time of grant using the company’s typical methods for valuing equity. Executive understands and acknowledges that the actual value of equity to be granted is at the discretion of the HRC and is not guaranteed. Further, the actual future value of LTI grants is subject to risk based on the performance of the company’s stock and cannot be guaranteed.
(b) Employee Benefits. During the Term of Employment, Executive shall be entitled to participate in such employee benefit plans and insurance programs made available generally to employees of the Company, or which it may adopt from time to time, for its employees, in accordance with the eligibility requirements for participation therein. Nothing herein shall be construed as a limitation on the ability of the Company to adopt, amend, or terminate any such plans, policies, or programs.
(c) Vacations. During the Term of Employment, Executive shall be entitled to paid vacation in accordance with the normal vacation policies of the Company, as applicable to employees at Executive's level.
(d) Reimbursement of Business and Other Expenses. During the Term of Employment, Executive is authorized to incur reasonable expenses in carrying out Executive’s duties and responsibilities under this Agreement, and the Company shall promptly reimburse Executive for all such expenses, subject to documentation and subject to the policies of the Company relating to expense reimbursement.
(e) D&O Insurance. During the Term of Employment, the Company shall provide Executive with Director’s and Officer’s indemnification insurance coverage in accordance with the terms of the Company’s policies as in effect from time to time, which policies may be subject to change during the Term of Employment.
(f) Ninety (90) Day Bonus. The Company agrees to pay Executive a lump-sum payment, subject to normal payroll withholdings, in the amount of fifty thousand dollars ($50,000) (the “Stay Bonus”) as soon as is practicable following Executive’s ninetieth (90th) day of employment, so long as Executive is employed by Company in good standing on the 90th day. “Good standing” shall mean actively employed on the Company’s payroll, and not on a final written warning or action plan.
(g) Proposed Retention Program. Executive will be eligible to participate in the Company’s Proposed Retention Program (as defined in the Amendment No. 1 to Form S-4 filed by Caesars Entertainment Corporation on June 5, 2017), if and when adopted. Executive understands and agrees that the granting and vesting of any equity grants are to be determined at the sole discretion of the HRC. Executive understands and agrees that the Company cannot guarantee a period required for vesting for any grant of equity. Rather, the HRC will set the vesting schedule in its sole discretion. The Company will recommend to the HRC that Executive receive a retention grant target of one million eight hundred fifty six thousand two hundred and fifty dollars ($1,856,250) based on value at time of grant, using the company’s typical methods
4 |
|
for valuing equity. Executive understands and acknowledges that the actual amount and value of equity to be granted is at the sole discretion of the HRC and is not guaranteed.
7. Termination of Employment. Executive’s employment hereunder may be terminated prior to the end of the Term of Employment under the following circumstances, and any such termination shall not be, nor be deemed to be, a breach of this Agreement:
(a) Death. Executive’s employment hereunder shall terminate upon Executive’s death.
(b) Disability. The Company shall have the right to terminate Executive’s employment hereunder for Disability (as defined below). “Disability” shall mean Executive has been unable to perform Executive’s duties hereunder on a full-time basis for a period of ninety (90) days during any three hundred sixty-five (365) day period, as a result of physical or mental incapacity as determined by a medical doctor mutually agreed upon by the Company and Executive. Any action taken pursuant to this Section 7(b) shall be in accordance with the Americans with Disabilities Act.
(c) For Cause. The Company shall have the right to terminate Executive’s employment for Cause. Upon the reasonable belief by the Company that Executive has committed an act (or has failed to act in a manner) which constitutes Cause, including under the provisions of paragraph 13 of this Agreement, the Company may immediately suspend Executive from Executive’s duties herein and bar Executive from its premises during the Company’s investigation of such acts (or failures to act) and any such suspension shall not be deemed to be a breach of this Agreement by the Company and/or otherwise provide Executive a right to terminate Executive’s employment for Good Reason (the “Investigation Period”); provided, however, that the Company shall have the right to terminate Executive’s employment for Cause immediately and nothing in this Agreement shall require the Company to provide an Investigation Period or otherwise provide advance notice of termination for Cause. In addition to violation of the provisions contained in paragraph 13 of this Agreement, for purposes of this Agreement, “Cause” shall mean (i) Executive’s commission of or guilty plea or plea of no contest to a felony (or its equivalent under applicable law), (ii) conduct by Executive that constitutes fraud or embezzlement, or any acts of dishonesty in relation to Executive’s duties with the Company, (iii) Executive’s gross negligence, bad faith, or gross misconduct which creates a likelihood of reputational or economic harm to the Company or its Subsidiaries or its Affiliates as determined by the Company in its sole discretion, (iv) Executive’s refusal or willful failure to perform Executive’s duties hereunder as determined by the Company in its sole discretion, (v) Executive’s refusal or willful failure to perform any reasonable directive of the Company, (vi) Executive’s knowing misrepresentation of any material fact that the Company reasonably requests, (vii) Executive being found unsuitable by the Company’s Compliance Committee or by a gaming regulatory agency, or, the Company is either informed or notified by a federal, state or local regulatory authority that such regulatory authority will recommend a finding of unsuitability as to Executive, in any jurisdiction in which the Company, Caesars Entertainment Corporation, or any of their respective Subsidiaries or Affiliates conducts operations, (viii) Executive’s violation, as determined by the Company in its sole discretion, of any securities or employment laws or regulations, or (ix) Executive’s material breach of Executive’s obligations under this Agreement or material violation of the Policies as determined
5 |
|
by the Company in its sole discretion. Executive shall have thirty (30) days to cure any and all actions supporting the Company’s Cause finding under (iv), (v) and (ix) above, subject to the Company’s determination that such act is curable and to the Company’s sole discretion that Executive has successfully cured any and all actions supporting Cause for termination.
(d) Without Cause. The Company shall have the right to terminate Executive’s employment hereunder without Cause, at any time and for any reason or no reason, by providing Executive with a Notice of Termination.
(e) By Executive. Executive shall have the right to terminate Executive’s employment hereunder without Good Reason (as defined below) by providing the Company with a Notice of Termination at least thirty (30) days prior to such termination. Executive also shall have the right to terminate Executive’s employment hereunder with Good Reason as set forth herein. For purposes of this Agreement, Executive shall have “Good Reason” to terminate Executive’s employment if, (i) within sixty (60) days after Executive knows (or has reason to know) of the occurrence of any of the following events, Executive provides written notice to the Company requesting that it cure such events, (ii) the Company fails to cure, if curable, such events within sixty (60) days following such notice, and, (iii) within ten (10) days after the expiration of such cure period, Executive provides the Company with a Notice of Termination: (A) a material reduction in Executive’s Base Salary other than a reduction that applies to a similarly situated class of employees of the Company or its Subsidiaries or Affiliates; (B) a material diminution in Executive’s duties, responsibilities or authority for a period of more than forty-five (45) days (not including any Investigation Period); or (C) a material breach by the Company of any of its material obligations to the Executive under this Agreement.
(f) Due to Expiration of the Term of Employment. The Term of Employment shall terminate upon the expiration of the then current Term of Employment in the event that either Party delivers a Notice of Non-Renewal to the other Party in accordance with Section 1 of this Agreement.
8. Date of Termination. Executive’s employment shall terminate, and the effective date of termination of both this Agreement and of Executive’s employment (the “Date of Termination”) shall be as follows: (i) if Executive’s employment is terminated due to Executive’s death pursuant to Section 7(a) of this Agreement, the date of Executive’s death, as stated on the death certificate, shall be the Date of Termination; (ii) if Executive’s employment is terminated due to Executive’s disability pursuant to Section 7(b) of this Agreement, the Date of Termination shall be fifteen (15) days after a Notice of Termination is delivered to Executive, as set forth in Section 16 below; (iii) if Executive’s employment is terminated for Cause pursuant to Section 7(c) of this Agreement, the Date of Termination shall be the earlier of: (a) the date on which the Company notifies Executive (orally or by other means) of his termination for Cause; or (b) the date on which a Notice of Termination is delivered to Executive pursuant to Section 16 below; (iv) if Executive’s employment is terminated without Cause, as set forth in Section 7(d) of this Agreement, the Date of Termination shall be the date set forth in the Notice of Termination and delivered to Executive, as set forth in Section 16 below; (v) if Executive’s employment is terminated by Executive without Good Reason pursuant to Section 7(e) of this Agreement, the Date of Termination shall be (30) days after delivery to the Company of a Notice of Termination as set forth in Sections 7(e) and 16 of this Agreement; provided further, that in
6 |
|
the event of termination of Executive’s employment hereunder without Good Reason, the Company may, in its sole and absolute discretion, accelerate such Date of Termination by delivering to Executive a written notice of such acceleration, as set forth in Section 16 below; (vi) if Executive’s employment is terminated by Executive for Good Reason pursuant to Section 7(e) of this Agreement, the Date of Termination shall be the date upon which a Notice of Termination is delivered to the Company, as set forth in Sections 7(e) and 16 of this Agreement; and (vii) if Executive’s employment is terminated by the Company or by Executive by delivering a Notice of Non-Renewal pursuant to Sections 1, 7(f), and 16 of this Agreement, the Date of Termination shall be the last day of the then-current Term of Employment.
A Notice of Termination shall identify the provision of this Agreement pursuant to which the Executive’s employment and this Agreement are being terminated.
9. Compensation Upon Termination. In the event Executive’s employment terminates prior to the expiration of the Term of Employment, the Company shall provide Executive with the payments and benefits set forth below. The payments described herein shall be in lieu of any other severance or termination benefits that Executive may otherwise have been eligible to receive under any severance policy, plan, or program maintained by the Company or its Subsidiaries or Affiliates or as otherwise mandated by law. To the extent that the Company and/or its Subsidiaries or Affiliates are required to pay Executive severance or termination pay under any such severance policy, plan, program, or applicable law, the amounts payable hereunder shall be reduced, but not below zero, on a dollar for dollar basis, and if and to the extent such reduction is permissible under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).
(a) Termination for Cause or Without Good Reason. If Executive’s employment is terminated by the Company for Cause or by Executive without Good Reason:
(i) within ten (10) business days following such termination, the Company shall pay to Executive any unpaid Base Salary earned through the Date of Termination;
(ii) within thirty (30) days following such termination, the Company shall reimburse Executive pursuant to Section 6(c) for reasonable expenses incurred but not paid prior to such termination of employment; and
(iii) the Company shall provide to Executive other or additional benefits (if any), in accordance with the then-applicable terms of any then-applicable plan, program, agreement or other arrangement of any of the Company, or of any of its Subsidiaries or Affiliates, in which Executive participates (the rights described in sub-clauses (i), (ii), and (iii) are collectively referred to as the “Accrued Obligations”). Thereafter, the Company shall have no further obligation under this Agreement or otherwise to Executive or Executive’s legal representatives or estate except as required by any applicable law.
7 |
|
(b) Death. If Executive’s employment is terminated due to Executive’s death during the Term of Employment, Executive or Executive’s beneficiary, legal representative, or estate shall receive the Accrued Obligations. Thereafter, the Company shall have no further obligation under this Agreement to Executive or Executive’s beneficiaries, legal representatives or estate except as otherwise required by applicable law.
(c) Termination Without Cause, For Good Reason, or upon Expiration of the Term of Employment Due to Company’s Issuance of a Notice of Non-Renewal, or for Disability. In the event that Executive’s employment under this Agreement is terminated by the Company without Cause under Section 7(d) of this Agreement, by Executive with Good Reason under Section 7(e) of this Agreement, upon expiration of the Term of Employment due to Company’s issuance of a Notice of Non-Renewal pursuant to Section 7(f) of this Agreement, or by the Company for Disability under Section 7(b) of this Agreement during the Term of Employment, the Company shall pay or provide to Executive the Accrued Obligations and, subject to Executive’s signing a separation agreement and release in the form attached hereto as Exhibit B (with such changes as may be necessary due to applicable law) (the “Release”) within twenty-one (21) days or forty-five (45) days, whichever period is applicable under the ADEA (as defined in Exhibit B) following the Date of Termination, and not revoking the Release within seven (7) days of signing it, the Company shall pay to Executive a severance amount equal to Executive’s monthly rate of Base Salary (i.e., 1/12 of Executive’s annual rate of Base Salary) for each of eighteen (18) months (the “Severance Period”) commencing after execution of the release by Executive, but in no case sooner than expiration of the 7-day waiting period set forth in Section 5(b) of Exhibit B, in accordance with the Company’s regular payroll practices; provided, that, the Company may cease making the payments under this Section 9(c) (in addition to asserting any other rights it may have in law of equity) (i) if Executive is in breach of any of Executive’s obligations under Section 10 of this Agreement and Executive has failed to cure such breach, if curable, within ten (10) days following the Company’s notice to Executive of such breach; or (2) if Executive is in breach of any of the terms of the Release. If applicable, Executive will be entitled to receive the benefits set forth on Exhibit C hereto during the Severance Period
(d) Offset. To the extent permissible under Section 409A of the Code, in the event of any termination of Executive’s employment under this Agreement, the Company is specifically authorized to offset against amounts due to Executive under this Agreement or otherwise on account of any claim that any of the Company or any of its Subsidiaries or Affiliates may have against Executive.
(e) Executive’s Equity Awards. The Executive’s equity awards, including but not limited to, options and the shares acquired thereunder, restricted stock and restricted stock units, if any, will be treated in accordance with the terms of the plan pursuant to which such awards and grants were awarded.
10. Restrictive Covenants and Confidentiality.
(a) Acknowledgments. Executive acknowledges that: (i) as a result of Executive’s employment by the Company, Executive has obtained and will obtain Confidential Information (as defined below); (ii) the Confidential Information has been developed and created by the Company and its Subsidiaries and Affiliates at substantial expense and the Confidential
8 |
|
Information constitutes valuable proprietary assets of the Company; (iii) the Company and its Subsidiaries and Affiliates will suffer substantial damage and irreparable harm which will be difficult to compute if, during the Term of Employment or during the Restricted Period as defined in Section 10(c) below, Executive should engage in or assist a Competitive Business (as defined herein) in violation of the provisions of this Agreement; (iv) the nature of the Company’s and its Subsidiaries’ and Affiliates’ business is such that it can be conducted anywhere in the world and is not limited to a geographic scope or region; (v) the Company and its Subsidiaries and Affiliates will suffer substantial damage which will be difficult to compute if, during the Term of Employment or thereafter, Executive should solicit or interfere with the Company’s or its Subsidiaries’ or Affiliates’ employees, clients, or customers or should divulge Confidential Information relating to the business of the Company or its Subsidiaries or Affiliates in violation of the provisions of this Agreement; (vi) the provisions of this Agreement are reasonable and necessary for the protection of the business of the Company and its Subsidiaries and Affiliates; (vii) the Company would not have hired or continued to employ Executive or grant the benefits contemplated under this Agreement unless Executive agreed to be bound by the terms hereof; and (viii) the provisions of this Agreement will not preclude Executive from other gainful employment following Executive’s termination from the Company. “Competitive Business” as used in this Agreement shall mean any business which owns, operates or manages any casino/resorts, casino/hotels, internet gaming, or other gaming venture or entity. “Confidential Information” as used in this Agreement shall mean any and all confidential and/or proprietary knowledge, data, or information of the Company or any Subsidiary or Affiliate, including, without limitation, any: (A) food and beverage procedures, recipes, finances, financial management systems, player identification systems (Total Rewards), pricing systems, organizational charts, salary and benefit programs, and training programs, (B) trade secrets, drawings, inventions, methodologies, mask works, ideas, processes, formulas, source or object codes, data, programs, software source documents, data, film, audio and digital recordings, works of authorship, know-how, improvements, discoveries, developments, designs or techniques, intellectual property or other work product of the Company or any Affiliate, whether or not patentable or registrable under trademark, copyright, patent, or similar laws; (C) information regarding plans for research, development, new service offerings and/or products, marketing, advertising, and selling, distribution, business plans, business forecasts, budgets, and unpublished financial statements, licenses, prices, costs, suppliers, customers, or distribution arrangements; (D) non-public information regarding and collected from employees, suppliers, customers, clients, suppliers, vendors, agents, and/or independent contractors of the Company or any Subsidiary or Affiliate; (E) concepts and ideas relating to the development and distribution of content in any medium or to the current, future, or proposed business opportunities, products or services of the Company or any Subsidiary or Affiliate; or (F) any other information, data, or the like that is designated as confidential or treated as confidential by the Company or any of its Subsidiaries or Affiliates.
(b) Confidentiality. In consideration of the compensation and other items of benefit provided for in this Agreement, Executive agrees not to, at any time, either during the Term of Employment or thereafter, divulge, post, use, publish, or in any other manner reveal, directly or
9 |
|
indirectly, to any person, firm, corporation or any other form of business organization or arrangement and keep in the strictest confidence any Confidential Information, except (i) as may be necessary to the performance of Executive’s duties hereunder, (ii) with the express written consent of the Company’s CEO or General Counsel, (iii) to the extent that any such information is in or becomes in the public domain other than as a result of Executive’s breach of any of obligations hereunder, or (iv) where required to be disclosed by court order, subpoena or other government process (including but not limited to disclosure(s) required by any gaming regulatory authority) and in such event, provided that Executive notifies the Company in writing in accordance with Section 16 below within three (3) days of receiving such order, subpoena, or process, cooperates with the Company in seeking an appropriate protective order and in attempting to keep such information confidential to the maximum extent possible. Executive agrees to promptly deliver to the Company the originals and all copies, in whatever medium, of all such Confidential Information in Executive’s possession, custody or control.
In addition, except as otherwise permitted by state or federal law, Executive agrees to keep the terms and conditions of this Agreement confidential, as set forth above, unless disclosure is otherwise required by applicable law or regulation including disclosure(s) required by any gaming regulatory authority. Executive understands that nothing contained in this Agreement limits Executive’s ability to file a charge or complaint with the U.S. Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state or local governmental agency or commission (government agencies). Executive further understands that this Agreement does not limit Executive’s ability to communicate with any government agencies or otherwise participate in any investigation or proceeding that may be conducted by any government agency, including providing documents or other information, without notice to the company. Executive may share the terms and conditions of this Agreement with Executive’s spouse, legal counsel, and accountants, provided that any such individual agrees to keep that information strictly confidential and disclose it to no other person. Executive agrees that if any such individual to whom Executive discloses information regarding the terms of this Agreement then discloses such information to any other person, Executive will be personally liable for such disclosure as a breach of this Agreement. Executive affirms that Executive has not made any prior disclosures that, if made after signing this Agreement, would have violated this obligation of confidentiality. Executive understands that confidentiality as set forth in this paragraph 10(b) is an important part of the consideration Executive is giving to the Company in this Agreement and that it would be very difficult for the Company to quantify the effect of a breach of these provisions, and that, accordingly, injunctive relief is an appropriate remedy for any breach of these provisions, whether by Executive or by any person to whom Executive or Executive’s agent or agents have divulged information regarding the terms of this Agreement. Under the federal Defend Trade Secrets Act of 2016, Executive shall not be held criminally or civilly liable under federal or state trade secret law for the disclosure of a trade secret that: (a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made to Executive’s attorney in relation to a lawsuit for retaliation against Executive for reporting a suspected violation of law; or (c) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.
10 |
|
(c) Non-Compete. The Parties agree that, in the course of Executive performing Executive’s job duties for the Company, Executive will necessarily become intimately familiar with the Company’s marketing strategies, plans, techniques, systems, and financial portfolios. The Parties further agree that, if Executive were to become employed by a Competitive Business within eighteen (18) months of the termination of Executive’s employment with Company, Executive would inevitably use and disclose the Company’s Confidential Information to such Competitive Business, giving such Competitive Business an unfair competitive advantage. In consideration of the compensation and other items of benefit provided for in this Agreement, Executive covenants and agrees that during the Term of Employment and for a period of eighteen (18) months following the Date of Termination of Executive’s employment for any reason, or from the entry by a court of competent jurisdiction of a judgment enforcing this Section, whichever of the foregoing is last to occur (the “Restricted Period”), Executive will not, for Executive, or in conjunction with any other Person (whether as a shareholder, partner, member, principal, agent, lender, director, officer, manager, trustee, representative, employee, intern, volunteer, consultant, or in another capacity), directly or indirectly, provide to any Competitive Business the same or substantially similar services as those provided by Executive to the Company whether (i) as a Executive Vice President and Chief Marketing Officer, (ii) in any substantially similar role irrespective of title or, (iii) if Executive assumes a new position within the Enterprise during the Term of Employment, in the same or substantially similar role as reflected by such new position. Notwithstanding anything herein to the contrary, this Section 10(c) shall not prevent Executive from acquiring securities representing not more than 1% of the outstanding voting securities of any entity the securities of which are traded on a national securities exchange or in the over the counter market.
(d) Non-Solicitation of Employees. In consideration of the compensation and other items of benefit provided for in this Agreement, Executive covenants and agrees that during the Term of Employment and for a period of eighteen (18) months following the Date of Termination of Executive’s employment for any reason, or from the entry by a court of competent jurisdiction of a judgment enforcing this Section, whichever of the foregoing is last to occur, Executive shall not, without the prior written permission of the Company’s CEO or General Counsel, directly or indirectly (i) solicit, or have or assist any other person or entity to solicit any person who is employed by or providing services to the Company or its Subsidiaries or Affiliates, at the time Executive’s employment with the Company terminates, or who was employed by the Company or its Subsidiaries or Affiliates within the six-month period prior to the termination of Executive’s employment or (ii) encourage, assist, entice, request and/or directly or indirectly cause any employee or consultant of the Company or its Subsidiaries or Affiliates to breach or threaten to breach any terms of such employee’s or consultant’s agreements with the Company or its Subsidiaries or Affiliates or to terminate his or her employment with the Company or its Subsidiaries or Affiliates.
(e) Non-Solicitation of Clients and Customers. In consideration of the compensation and other items of benefit provided for in this Agreement, Executive covenants and agrees that during the Term of Employment and for a period of eighteen (18) months following the termination of Executive’s employment for any reason, or from the entry by a court of competent jurisdiction of a judgment or any appeal thereon, whichever of the foregoing is last to occur, Executive will not, for Executive, or in conjunction with any other Person (whether as a shareholder, partner, member, lender, principal, agent, director, officer, manager, trustee,
11 |
|
representative, employee, consultant or in another capacity), directly or indirectly: (i) solicit any Person who, to Executive’s knowledge, was an existing or prospective customer, client, supplier, or vendor of the Company or its Subsidiaries or Affiliates at the time of, or at the time during the six (6) months preceding, Executive’s termination of employment (an “Associated Person”); or (ii) request or cause any of the Company’s or its Subsidiaries’ or Affiliates’ clients, customers, suppliers, or vendors (an “Associated Person”) to cancel, terminate, reduce or otherwise interfere with any business relationship with the Company or its Subsidiaries or Affiliates. The restrictive covenants detailed in this Section 10(e) shall not apply if: (i) Executive did not solicit the Associated Person; (ii) the Associated Person voluntarily chooses to cancel, terminate or reduce its relationship with the Company and voluntarily seek the services of Executive; and (iii) Executive otherwise complies with all restrictive covenants detailed in Section 10.
(f) Post-Employment Property. The Parties agree that any work of authorship, invention, design, discovery, development, technique, improvement, source code, hardware, device, data, apparatus, practice, process, method, or other work product whatever (whether patentable or subject to copyright, or not, and hereinafter collectively called “discovery”) that Executive, either solely or in collaboration with others, has conceived, created, made, discovered, invented, developed, perfected, or reduced to practice during the term of Executive’s employment, whether or not during regular business hours or on the Company’s or any Subsidiaries and Affiliates’ premises, and that is related to Executive’s work for the Company or which results from or is suggested by the work Executive does for or on behalf of the Company, shall be the sole and complete property of the Company and/or its Subsidiaries and Affiliates. More particularly, and without limiting the foregoing, Executive agrees that all of the foregoing and any (i) inventions (whether patentable or not, and without regard to whether any patent therefor is ever sought); (ii) marks, names, or logos (whether or not registrable as trade or service marks, and without regard to whether registration therefor is ever sought); (iii) works of authorship (without regard to whether any claim of copyright therein is ever registered); and (iv) trade secrets, ideas, and concepts (subsections (i) - (iv) collectively, “Intellectual Property Products”) created, conceived, or prepared on the Company’s or its Subsidiaries and Affiliates’ premises or otherwise, whether or not during normal business hours or on the Company’s premises, and related to the Company’s business, shall perpetually and throughout the world be the exclusive property of the Company and/or its Subsidiaries and Affiliates, as shall all tangible media (including, but not limited to, papers, computer media, and digital and cloud-based of all types and models) in which such Intellectual Property Products shall be recorded or otherwise fixed. Upon termination of Executive’s employment with the Company for any reason whatsoever, and at any earlier time the Company so requests, Executive will immediately deliver to the custody of the person designated by the CEO or General Counsel of the Company all originals and copies of any documents and other property of the Company or any of its Subsidiaries or Affiliates in Executive’s possession or under Executive’s custody or control.
(g) Works for hire. Executive agrees that all works of authorship created in whole or in part by Executive during Executive’s engagement by the Company and that is related to Executive’s work for the Company or which results from or is suggested by the work Executive does for or on behalf of the Company, shall be works made for hire of which the Company or its Subsidiaries and Affiliates is the author and owner of copyright. To the extent that any competent decision-making authority should ever determine that any work of authorship created by Executive during Executive’s engagement by the Company is not a work made for hire,
12 |
|
Executive hereby assigns all right, title, and interest in the copyright therein, in perpetuity and throughout the world, to the Company. To the extent that this Agreement does not otherwise serve to grant or otherwise vest in the Company or any of its Subsidiaries or Affiliates all rights in any Intellectual Property Product created in whole or in part by Executive during Executive’s engagement by the Company, Executive hereby assigns all right, title, and interest therein, in perpetuity and throughout the world, to the Company. Executive agrees to execute, immediately upon the Company’s reasonable request and without any additional compensation, any further assignments, applications, conveyances or other instruments, at any time after execution of this Agreement, whether or not Executive remains employed by the Company at the time such request is made, in order to permit the Company, its Subsidiaries and Affiliates, and/or their respective successors and assigns to protect, perfect, register, record, maintain, or enhance their rights in any Intellectual Property Product; provided, that, the Company shall bear the cost of any such assignments, applications, or consequences.
(h) Non-Disparagement. Executive agrees that Executive will not defame, denigrate, or publicly criticize the services, plans, methodologies, business, integrity, veracity or personal or professional reputation of the Company or any of its Subsidiaries or Affiliates or their respective officers, directors, partners, executives, or agents in either a professional or personal manner at any time during or following the Term of Employment.
(i) Enforcement. If Executive commits a breach of any of the provisions of this Section 10, the Company shall have the right and remedy to have the provisions specifically enforced by any court having jurisdiction, it being acknowledged and agreed by Executive that Executive possesses considerable Confidential Information and that the services being rendered hereunder are of a special, unique, and extraordinary character and that any such breach will cause irreparable injury to the Company and its Subsidiaries and Affiliates and that money damages will not provide an adequate remedy to the Company or its Subsidiaries or Affiliates. Such right and remedy shall be in addition to, and not in lieu of, any other rights and remedies available to the Company and its Subsidiaries and Affiliates, at law or in equity. Accordingly, Executive consents to the issuance of a temporary and/or preliminary injunction, in aid of arbitration, consistent with the terms of this Agreement.
(j) Modification/Blue Pencil. Except where prohibited, if, at any time, a reviewing court of appropriate jurisdiction called upon to issue an injunction in accordance with Section 10(i) finds any of the provisions of this Section 10 to be invalid or unenforceable under any applicable law, by reason of being vague or unreasonable as to area, duration, or scope of activity, this Agreement shall be considered divisible and such court shall have authority to modify or blue pencil this Agreement to cover only such area, duration, and scope as shall be determined to be reasonable and enforceable by the court. Executive and the Company agree that this Agreement, as so amended, shall be valid and binding as though any invalid or unenforceable provision had not been included herein.
(k) EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS CAREFULLY READ THIS SECTION 10 AND HAS HAD THE OPPORTUNITY TO REVIEW ITS PROVISIONS WITH ANY ADVISORS AS EXECUTIVE CONSIDERED NECESSARY, AND THAT EXECUTIVE UNDERSTANDS THIS AGREEMENT’S CONTENTS AND SIGNIFIES SUCH UNDERSTANDING AND AGREEMENT BY SIGNING BELOW.
13 |
|
11. Assignability; Binding Nature. The rights and benefits of Executive hereunder shall not be assignable, whether by voluntary or involuntary assignment or transfer by Executive or otherwise. This Agreement shall be binding upon, and inure to the benefit of, the successors and assigns of the Company, and the heirs, beneficiaries, executors, and administrators of Executive, and shall be assignable by the Company only to any entity acquiring substantially all of the assets of the Company, whether by merger, consolidation, sale of assets or similar transactions. In the event of such an assignment, Executive shall receive $1,000, subject to applicable deductions and withholding taxes, in addition to Executive’s compensation hereunder as additional consideration for such assignment.
12. Representations. Executive represents and warrants to the Company, and Executive acknowledges that the Company has relied on such representations and warranties in employing Executive, that neither Executive’s duties as an employee of the Company nor Executive’s performance in accordance with the terms of this Agreement will breach any other obligations of Executive, including under any other agreement to which Executive is a party, including, without limitation, any agreement limiting the use or disclosure of any information acquired by Executive prior to Executive’s employment by the Company. Executive represents and warrants that Executive has not willfully or knowingly misrepresented or withheld any material fact that the Company would reasonably need to make an informed decision regarding an offer of employment to Executive. In addition, Executive represents and warrants and acknowledges that the Company has relied on such representations and warranties in employing Executive, and that Executive has not entered into, and will not enter into, any agreement, either oral or written, in conflict herewith.
13. Compliance. Executive agrees to comply with all federal, state, local, provincial or other laws or regulations in all jurisdictions both domestic and international. Failure to do so could result in termination of this Agreement for Cause pursuant to paragraph 7(c) of this Agreement. As a holder of privileged gaming licenses, the Company and its affiliates are required to adhere to strict laws and regulations regarding its associations, including associations with key employees as defined under the Caesars Entertainment Corporation Ethics and Compliance Program (“E&C Program”). If at any time: (a) the Company’s Compliance Committee determines, in its sole discretion, that Executive is an unsuitable person as that term is defined in the E&C Program, or that it would be in the Company’s best interest to terminate the employment of Executive in order to protect any proposed or pending gaming licenses or any of its privileged gaming licenses; or (b) the Company is either informed or notified by a federal, state or local regulatory authority that such regulatory authority will recommend a finding of unsuitability as to Executive, the Company may immediately terminate this Agreement pursuant to paragraph 7(c) of this Agreement. During the term of this Agreement, to the extent that any prior disclosure made by Executive becomes inaccurate, including but not limited to the initiation of any criminal proceeding or any civil or administrative proceeding or process which alleges any violations of law involving Executive shall disclose the information to Company within 10 calendar days from that event. Executive agrees to comply with any background investigation conducted in connection with the disclosure of this updated information. If Executive is or becomes required to be licensed by any federal, state, and/or local gaming regulatory agency and fails to become so licensed, or, once licensed, fails to maintain such license or fails to continue to be suitable by the governmental regulatory agency, the Company may immediately terminate this Agreement for Cause pursuant to paragraph 7(c) of this
14 |
|
Agreement. By signing this Agreement, Executive acknowledges that Executive has received a copy of the E&C Program, the Caesars Anti-Corruption Compliance Policy, and the Caesars Entertainment Corporation Anti-Money Laundering Policy and Program. Executive understands and agrees to comply with these and all other policies adopted by the Company. Executive shall sign all certification/attestation forms associated with these policies and return them to the Caesars Corporate Compliance Department. Executive further understands Executive’s obligation to report suspected violations of law, regulation, policies, or of unethical conduct occurring within the Company and/or its affiliates to the Chief Regulatory & Compliance Officer, his/her designee, or through the Ethics and Compliance Hotline, the number for which is posted on the Caesars Entertainment Corporation intranet website.
14. Litigation And Regulatory Cooperation. During the Term of Employment and continuing thereafter upon termination of employment, Executive shall reasonably cooperate with the Company and its Subsidiaries and Affiliates in the defense or prosecution of any claims or actions now in existence or that may be brought or threatened in the future against or on behalf of any of the Company, its Subsidiaries, Affiliates, divisions, successors, and assigns, about which the Company believes Executive may have relevant information. Executive’s cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company, its Subsidiaries, Affiliates, successors and assigns at mutually convenient times. Executive also shall cooperate fully with the Company in connection with any investigation or review by any federal, state, or local regulatory authority as any such investigation or review relates to events or occurrences that transpired while Executive was employed by the Company; provided, that, the Company will reimburse Executive for Executive’s reasonable travel expenses incurred with respect to such cooperation.
15. Resolution of Disputes. Any dispute arising in connection with the validity, interpretation, enforcement, or breach of this Agreement or arising out of Executive’s employment or termination of employment with the Company; under any statute, regulation, ordinance or the common law; or otherwise arising between Executive, on the one hand, and the Company or any of its Subsidiaries or Affiliates, on the other hand, the Parties, shall (except to the extent otherwise provided in Section 10(i) with respect to certain requests for injunctive relief) be submitted to binding arbitration before the American Arbitration Association (“AAA”) for resolution. Such arbitration shall be conducted in Las Vegas, Nevada, and the arbitrator will apply the law of the jurisdiction as provided in Section 17(h), below, including federal law as applied in the courts in the jurisdiction specified in Section 17(h). The arbitration shall be conducted in accordance with the AAA’s Employment Arbitration Rules, as modified by the terms set forth in this Agreement. The arbitration will be conducted by a single arbitrator, who shall be an attorney who specializes in the field of employment law and shall have prior experience arbitrating employment disputes. The Company will pay the fees and costs of the Arbitrator and/or the AAA, except that Executive will be responsible for paying the applicable filing fee not to exceed the fee that Executive would otherwise pay to file a lawsuit asserting the same claim in court. The arbitrator shall not have the authority to modify the terms of this Agreement except to the extent that the Agreement violates any governing statue, in which case the arbitrator may modify the Agreement solely as necessary to not conflict with such statute. The Arbitrator shall have the authority to award any remedy or relief that a court in the jurisdiction specified in Section 17(h) could grant in conformity with the applicable law on the
15 |
|
basis of claims actually made in the arbitration. The Arbitrator shall render an award and written opinion which shall set forth the factual and legal basis for the award. The award of the arbitrator shall be final and binding on the Parties, and judgment on the award may be confirmed and entered in any state or federal court located in the jurisdiction specified in Section 17(h). The arbitration shall be conducted on a strictly confidential basis, and Executive shall not disclose the existence of a claim, the nature of a claim, any documents, exhibits, or information exchanged or presented in connection with any such a claim, or the result of any arbitration (collectively, “Arbitration Materials”), to any third party, with the sole exception of Executive’s legal counsel, who Executive shall ensure adheres to all confidentiality terms in this Agreement. In the event of any court proceeding to challenge or enforce an arbitrator’s award, the Parties hereby consent to the exclusive jurisdiction of the state and federal courts in the jurisdiction specified in Section 17(h) and agree to venue in that jurisdiction. The Parties agree to take all steps necessary to protect the confidentiality of the Arbitration Materials in connection with any such proceeding, agree to file all Confidential Information (and documents containing Confidential Information) under seal to the extent possible, and agree to the entry of an appropriate protective order encompassing the confidentiality terms of this Agreement. Each party agrees to pay its own costs and fees in connection with any arbitration of a dispute arising under this Agreement, and any court proceeding arising therefrom, regardless of outcome. To the extent any dispute is found not to be subject to this arbitration provision, both Executive and Company hereby waive their respective rights to trial by jury. Notwithstanding anything to the contrary herein, the arbitrator shall have the authority to award reasonable costs, expenses, and attorneys' fees to the party that substantially prevails.
EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS CAREFULLY READ THIS SECTION 15, VOLUNTARILY AGREES TO ARBITRATE ALL DISPUTES, AND HAS HAD THE OPPORTUNITY TO REVIEW THE PROVISIONS OF SECTION 15 WITH ANY ADVISORS AS EXECUTIVE CONSIDERED NECESSARY. BY SIGNING BELOW, EXECUTIVE SIGNIFIES EXECUTIVE’S UNDERSTANDING AND AGREEMENT TO SECTION 15.
16. Notices. Any written notice required to be provided by the Company to the Executive, or by the Executive to the Company, pursuant to this Agreement shall be delivered, and receipt shall be deemed effective, as follows:
|
If to the Company: |
|
Caesars Enterprise Services, LLC One Caesars Palace Drive Las Vegas, Nevada 89109 Phone: 702-407-6300 Attention: General Counsel
Such notice must be sent by a nationally recognized overnight courier. Delivery to the Company shall be deemed effective two days after the notice is given to the overnight courier for delivery. |
|
|
|
|
|
If to Executive: |
|
(i) Hand delivered to the Executive (in which case delivery shall be deemed effective at the moment notice is handed to the Executive); or (ii) sent by a nationally recognized overnight courier to the |
16 |
|
|
|
address of Executive’s principal residence as it appears in the Company’s records. Delivery to the Executive shall be deemed effective two days after the notice is given to the overnight courier for delivery. Nothing in the foregoing provision is intended to alter the company’s right to terminate Executive’s employment immediately for Cause orally or by other means, as set forth in Sections 7(c) and 8 above. In addition, the Company shall send a copy of such notice to Executive’s attorney:
Outten & Golden LLP 685 Third Avenue, 25th Floor New York, NY 10017 Attention: Wayne Outten | |
|
|
|
|
|
If to a beneficiary, heir or executor: | ||
|
|
|
|
|
Sent by a nationally recognized overnight courier to the address most recently specified by Executive, beneficiary, or executor. Delivery shall be deemed effective two days after the notice is given to the overnight courier. |
17. Miscellaneous.
(a) Entire Agreement. This Agreement, including its Exhibits A, B, and C contains the entire understanding and agreement among the Parties concerning the subject matter hereof and supersedes all prior agreements, understandings, discussions, negotiations, and undertakings, whether written or oral, among them with respect thereto.
(b) Amendment or Waiver. No provision in this Agreement may be amended unless such amendment is set forth in a writing that specifically identifies the provision being amended and that is signed by Executive and the CEO or Company General Counsel. No waiver by any Person of any breach of any condition or provision contained in this Agreement shall be deemed a waiver of any similar or dissimilar condition or provision at the same or any prior or subsequent time.
(c) Headings. The headings of the Sections and sub-sections contained in this Agreement are for convenience only and shall not be deemed to control or affect the meaning or construction of any provision of this Agreement.
(d) Beneficiaries/References. Executive shall be entitled, to the extent permitted under applicable law, to select and change a beneficiary or beneficiaries to receive any compensation or benefit under this Agreement in the event of Executive’s death by giving the Company written notice thereof. In the event of Executive’s death or a judicial determination of Executive’s incompetence, references in this Agreement to Executive shall be deemed, where appropriate, to refer to Executive’s beneficiary, estate or other legal representative.
17 |
|
(e) Survivorship. Except as otherwise set forth in this Agreement, the respective rights and obligations of the Parties hereunder shall survive any termination of Executive’s employment under this Agreement.
(f) Withholding Taxes. The Company may withhold from any amounts or benefits payable under this Agreement, including its Exhibit B and Exhibit C, any taxes that are required to be withheld pursuant to any applicable law or regulation.
(g) 409A Provisions. Notwithstanding anything herein to the contrary, this Agreement is intended to be interpreted and applied so that the payment of the benefits set forth herein either shall either be exempt from the requirements of Section 409A of the Code, or shall comply with the requirements of such provision. Notwithstanding any provision in this Agreement or elsewhere to the contrary, if Executive is a “specified employee” within the meaning of Section 409A of the Code as of the Date of Termination, any payments or benefits due upon a termination of Executive’s employment under any arrangement that constitutes a “deferral of compensation” within the meaning of Section 409A of the Code and which do not otherwise qualify under the exemptions under Treas. Regs. Section 1.409A-1 (including without limitation, the short-term deferral exemption and the permitted payments under Treas. Regs. Section 1.409A-1(b)(9)(iii)(A)), shall be delayed and paid or provided within thirty (3) days following the earlier of (i) the date which is six (6) months after Executive’s separation from service (as defined in Section 409A of the Code and the regulations and other published guidance thereunder) for any reason other than death, and (ii) the date of Executive’s death. Notwithstanding anything in this Agreement or elsewhere to the contrary, distributions upon termination of Executive’s employment may only be made upon a “separation from service” as determined under Section 409A of the Code and such date shall be the Date of Termination for purposes of this Agreement. Each separately identified amount to which Executive is entitled under this Agreement or otherwise shall be treated as a separate payment for purposes of Section 409A of the Code. In addition, to the extent possible under Section 409A of the Code, any series of installment payments under this Agreement shall be treated as a right to a series of separate payments. In no event may Executive, directly or indirectly, designate the calendar year of any payment to be made under this Agreement or otherwise if such designation would constitute a “deferral of compensation” within the meaning of Section 409A of the Code. All reimbursements and in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A of the Code. To the extent that any reimbursements pursuant to this Agreement or otherwise are taxable to Executive, any reimbursement payment due to Executive shall be paid to Executive on or before the last day of Executive’s taxable year following the taxable year in which the related expense was incurred; provided, that, Executive has provided the Company written documentation of such expenses in a timely fashion and such expenses otherwise satisfy the Company’s expense reimbursement policies. Reimbursements pursuant to this Agreement or otherwise are not subject to liquidation or exchange for another benefit and the amount of such reimbursements that Executive receives in one taxable year shall not affect the amount of such reimbursements that Executive receives in any other taxable year. Notwithstanding any of the foregoing to the contrary, the Company and its officers, directors, employees, agents, and representatives make no guarantee or representation that the payments or benefits provided under this Agreement comply with, or are exempt from, the provisions of Section 409A of the Code, and none of the foregoing shall have any liability or other obligation to indemnify or hold harmless Executive or any beneficiary of
18 |
|
Executive for any Tax, additional tax, interest or penalties that Executive or any beneficiary of Executive may incur in the event that any provision of this Agreement, or any amendment or modification thereof, or any other action taken with respect thereto, is deemed to violate any of the requirements of Section 409A of the Code.
(h) Governing Law. This Agreement shall be governed, construed, performed and enforced in accordance with its express terms, and otherwise in accordance with the laws of the State of Nevada applicable to contracts to be performed therein.
(i) Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall be deemed to be one and the same instrument.
(j) Construction. This Agreement shall not be construed against either Party, and no consideration shall be given or presumption made on the basis of who drafted the Agreement or any particular provision hereof or who supplied the form of this Agreement. In construing the Agreement, (i) examples shall not be construed to limit, expressly or by implication, the matter they illustrate, (ii) the connectives “and,” “or,” and “and/or” shall be construed either disjunctively or conjunctively so as to construe a sentence or clause most broadly and bring within its scope all subject matter that might otherwise be construed to be outside of its scope; (iii) the word “includes” and its derivatives means “includes, but is not limited to” and corresponding derivative expressions, (iv) a defined term has its defined meaning throughout the Agreement, whether it appears before or after the place where it is defined, and (v) the headings and titles herein are for convenience only and shall have no significance in the interpretation hereof.
(k) Third Party Beneficiaries. The parties agree that each of the Company’s Affiliates and Subsidiaries are intended third party beneficiaries of this Agreement and shall have the authority to enforce the provisions applicable to them in accordance with the terms of hereof.
Expenses. Each party shall pay all costs and expenses that it incurs with respect to the negotiation, execution, delivery, and performance of the Agreement. IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first set forth above.
19 |
|
|
|
CAESARS ENTERPRISE SERVICES, LLC |
|
|
|
|
|
|
|
By:/s/ Mary Thomas |
|
|
|
Name: Mary Thomas Title: Executive Vice President of Human Resources |
|
|
|
Executive
|
|
|
|
/s/ Christopher Holdren |
|
|
|
Christopher Holdren |
|
20 |
EXHIBIT A
· |
Blue Gate LLC |
|
|
· |
Dhanya LLC |
|
|
· |
Eklektikos LLC |
|
|
· |
Handy Technologies, LLC |
|
|
21 |
EXHIBIT B
SEPARATION AGREEMENT AND RELEASE
In consideration of and in accordance with the ______________ Employment Agreement by and between Executive and Caesars Enterprise Services, LLC with offices at One Caesars Palace Drive, Las Vegas, Nevada 89109 (together with its successors and assigns, the “Company”) (“Employment Agreement”), of which this Exhibit A is part, Christopher Holdren (“Executive”) hereby agrees as follows. All terms not defined in this Separation Agreement and Release (“Separation Agreement”) shall have the same meanings as those set forth in the Employment Agreement.
1. Consideration. Executive acknowledges and agrees that the payments and benefits paid or granted to Executive under the Employment Agreement (the “Consideration Amounts”), represent good, valuable, and sufficient consideration for signing this Separation Agreement, and exceed any amounts or interests to which Executive otherwise would be entitled. Executive acknowledges and agrees that except as specifically provided in this Separation Agreement, the Company shall have no other obligations or liabilities, monetary or otherwise, to Executive following the date hereof (the “Effective Date”) and that the payments and benefits contemplated herein constitute a complete settlement, satisfaction, and waiver of any and all claims Executive may have against the Company.
2. Release of Claims.
(a) Executive, for Executive, Executive’s spouse, and each of Executive’s heirs, beneficiaries, representatives, agents, successors, and assigns (collectively, “Executive Releasors”), irrevocably and unconditionally releases and forever discharges the Company, each and all of its predecessors, parents, Subsidiaries, Affiliates, divisions, successors, and assigns (collectively with the Company, the “Company Entities”), and each and all of the Company Entities’ current and former officers, directors, employees, shareholders, representatives, attorneys, agents, and assigns (collectively, with the Company Entities, the “Company Releasees”), from any and all causes of action, claims, actions, rights, judgments, obligations, damages, demands, accountings, or liabilities of any kind or character, whether known or unknown, whether accrued or contingent, that Executive has, had, or may have against them, or any of them, by reason of, arising out of, connected with, touching upon, or concerning Executive’s employment with the Company, Executive’s separation from the Company, and Executive’s relationship with any or all of the Company Releasees, and from any and all statutory claims, regulatory claims, claims under the Employment Agreement, and any and all other claims or matters of whatever kind, nature, or description, arising from the beginning of the world up through the Separation Agreement Effective Date (as defined below) (collectively, the “Released Claims”). Executive acknowledges that the Released Claims specifically include, but are not limited to, any and all claims for fraud, breach of express or implied contract, breach of the implied covenant of good faith and fair dealing, interference with contractual rights, violation of public policy, invasion of privacy, intentional or negligent infliction of emotional distress, intentional or negligent misrepresentation, defamation, libel, slander, or breach of privacy; claims for failure to pay wages, benefits, deferred compensation, commissions, bonuses, vacation
|
pay, expenses, severance pay, attorneys’ fees, or other compensation of any sort; claims related to stock options, equity awards, or other grants, awards, or warrants; claims related to any tangible or intangible property of Executive that remains with the Company; claims for retaliation, harassment or discrimination on the basis of race, color, sex, sexual orientation, national origin, ancestry, religion, age, disability, medical condition, marital status, gender identity, gender expression, or any other characteristic or criteria protected by law; any claim under Title VII of the Civil Rights Act of 1964 (Title VII, as amended), 42 U.S.C. §§ 2000e, et seq., the Civil Rights Act of 1991, the Civil Rights Act of 1866, the Family and Medical Leave Act (“FMLA”), 29 U.S.C. §§ 2601, et seq., the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 201, et seq., the Equal Pay Act, 29 U.S.C. §206(a) and interpretive regulations, the Americans with Disabilities Act (“ADA”), 42 U.S.C. §§ 12101, et seq., the Consolidated Omnibus Budget Reconciliation Act of 1986 (“COBRA”), the Occupational Safety and Health Act (“OSHA”) or any other health and/or safety laws, statutes, or regulations, the Uniformed Services Employment and Reemployment Rights Act (“USERRA”), 38 U.S.C. §§ 4301-4333, the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. §§ 301, et seq., the Immigration Reform and Control Act of 1986, 8 U.S.C. §§ 1101, et seq., or the Internal Revenue Code of 1986, as amended, the Worker Adjustment and Retraining Notification Act; all claims arising under the Sarbanes-Oxley Act of 2002 (Public Law 107-204), including whistleblowing claims under 18 U.S.C. §§ 1513(e) and 1514A; the Nevada Wage and Hour Laws, NEV. REV. STAT. § 608.005, et seq., the Nevada Fair Employment Practices Act. NEV. REV. STAT. § 613.310 et seq., and any and all other foreign, federal, state, or local laws, common law, or case law, including but not limited to all statutes, regulations, common law, and other laws in place in Clark County, Nevada. Executive understands that nothing contained in this agreement limits Executive’s ability to file a charge or complaint with the U.S. Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state or local governmental agency or commission (government agencies). Executive further understands that this Agreement does not limit Executive’s ability to communicate with any government agencies or otherwise participate in any investigation or proceeding that may be conducted by any government agency, including providing documents or other information, without notice to the Company. This Agreement does not limit Executive’s right to receive an award for information provided to any government agencies.
(b) Executive acknowledges that there is a risk that after the execution of this Separation Agreement, Executive will incur or suffer damage, loss, or injury that is in some way caused by or connected with Executive’s employment with the Company or its Subsidiaries or Affiliates or Executive’s separation from the Company or its Subsidiaries or Affiliates, and any relationship with or membership or investment in the Company Releasees, but that is unknown or unanticipated at the time of execution of this Separation Agreement. Executive specifically assumes that risk, and agrees that this Separation Agreement and the Released Claims apply to all unknown or unanticipated, accrued or contingent claims and all matters caused by or connected with Executive’s employment with the Company or its Subsidiaries or Affiliates and/or Executive’s separation from the Company or its Subsidiaries or Affiliates, as well as those claims currently known or anticipated. Executive acknowledges and agrees that this Separation Agreement constitutes a knowing and voluntary waiver of any and all rights and claims Executive does or may have as of the Separation Agreement Effective Date. Executive acknowledges that Executive has waived rights or claims pursuant to this Separation Agreement
2 |
|
in exchange for consideration, the value of which exceeds payment or remuneration to which Executive otherwise would be entitled.
(c) To the extent permitted by law, Executive agrees never to file a lawsuit or other adversarial proceeding with any court or arbitrator against the Company or any other Company Releasee asserting any Released Claims. Executive represents and agrees that, prior to signing this Separation Agreement, Executive has not filed or pursued any complaints, charges, or lawsuits of any kind with any court, governmental or administrative agency, arbitrator, or other forum against the Company or any of the other Company Releasees, asserting any claims whatsoever. Executive understands and acknowledges that, in the event Executive files an administrative charge or commences any proceeding with respect to any Released Claim, or in the event another person or entity does so in whole or in part on Executive’s behalf, Executive waives and is estopped from receiving any monetary award or other legal or equitable relief in connection with any such proceeding.
(d) Executive represents and warrants that Executive has not assigned, transferred, or permitted the subrogation of any of Executive’s rights, claims, and/or causes of action, including any claims referenced in this Separation Agreement, or authorized any other person or entity to assert any such claim or claims on Executive’s behalf, and Executive agrees to indemnify and hold harmless the Company against any assignment, transfer, or subrogation of said rights, claims, and/or causes of action
3. Survival. The following Sections of the Employment Agreement shall remain in full force and effect following the Termination Date: Section 5 (“Claw-Back”), Section 9 (“Compensation Upon Termination”), Section 10 (“Restrictive Covenants and Confidentiality”), Section 11 (“Assignability; Binding Nature”), Section 13 (“Litigation And Regulatory Cooperation”), Section 14 (“Resolution of Disputes”), Section 15 (“Notices”), and Section 16 (“Miscellaneous”). Any disputes arising in connection with this Separation Agreement or otherwise arising between any of Executive Releasors, on the one hand, and any of the Company Releasees, on the other hand, shall be resolved in accordance with Sections 10 and 14 of the Employment Agreement.
4. Tax Liability. Executive expressly acknowledges that neither the Company nor its attorneys have made any representations to Executive regarding the tax consequences of the consideration provided to Executive pursuant to this Separation Agreement and Section 9 of the Employment Agreement. It is the intention of the parties to this Separation Agreement that no payments made under this Separation Agreement and/or Section 9 of the Employment Agreement be subject to the additional tax on deferred compensation imposed by Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), but Company does not guarantee that any such payment complies with or is exempt from Code Section 409A. Each payment made under this Separation Agreement or Section 9 of the Employment Agreement will be treated as a separate payment for purposes of Code Section 409A and the right to a series of installment payments under this Separation Agreement is to be treated as a right to a series of separate payments.
5. Knowing/Voluntary Waiver.
3 |
|
(a) Executive is entitled to consider the terms of this Separation Agreement for twenty-one (21) days before signing it. If Executive fails to execute this Separation Agreement within this twenty-one (21) day period, this Separation Agreement will be null and void and of no force or effect. To execute this Separation Agreement, Executive must sign and date the Separation Agreement below, and return a signed copy hereof to Attn: Corporate Compensation, Caesars Enterprise Services, LLC, One Caesars Palace Drive, Las Vegas, Nevada 89109, (phone):702-880-6829, compensationrequests@caesars.com, via nationally recognized overnight carrier or email.
(b) Executive may revoke this Separation Agreement within seven (7) days of Executive’s signing it by delivering a written notice of such revocation to Attn: Corporate Compensation, Caesars Enterprise Services, LLC, One Caesars Palace Drive, Las Vegas, Nevada 89109, (phone): 702-880-6829, compensationrequests@caesars.com, via nationally recognized overnight carrier or email. If Executive revokes this Separation Agreement within seven (7) days of signing it, this Separation Agreement and the promises contained herein or in Section 9 of the Employment Agreement automatically will be null and void. If Executive signs this Separation Agreement and does not revoke this Separation Agreement within seven (7) days of signing it, this Separation Agreement shall become binding, effective, and irrevocable on the eighth (8th) day after the Separation Agreement is executed by both parties (the “Separation Agreement Effective Date”).
(c) Executive acknowledges that Executive (a) has carefully read this Separation Agreement and the Employment Agreement; (b) is competent to manage Executive’s own affairs; (c) fully understands the Separation Agreement’s and Employment Agreement’s contents and legal effect, and understands that Executive is giving up any legal claims Executive has against any of the Company Releasees, including but not limited to any and all legal rights or claims under the Age Discrimination in Employment Act of 1967 (“ADEA”) (29 U.S.C. § 626, as amended), and all other federal, state, foreign, and local laws regarding age discrimination, whether those claims are presently known or hereafter discovered; (d) has been advised to consult with an attorney of Executive’s choosing prior to signing this Separation Agreement, if Executive so desires; and (e) has chosen to enter into this Separation Agreement freely, without coercion, and based upon Executive’s own judgment, and that Executive has not relied upon any promises made by any of the Company Releasees, other than the promises explicitly contained in this Separation Agreement.
6. Miscellaneous.
This Separation Agreement may be executed in counterparts, each of which shall be deemed an original, and both of which together shall constitute one and the same instrument. The section headings in this Separation Agreement are provided for convenience only and shall not affect the construction or interpretation of this Separation Agreement or the provisions hereof.
This Separation Agreement shall not in any way be construed as an admission that the Company, Executive, or any other individual or entity has any liability to or acted wrongfully in any way with respect to Executive, the Company, or any other person.
4 |
|
This Separation Agreement shall not be construed against either Party, and no consideration shall be given or presumption made on the basis of who drafted the Separation Agreement or any particular provision hereof or who supplied the form of this Separation Agreement. In construing the Separation Agreement, (i) examples shall not be construed to limit, expressly or by implication, the matter they illustrate, (ii) the connectives “and,” “or,” and “and/or” shall be construed either disjunctively or conjunctively so as to construe a sentence or clause most broadly and bring within its scope all subject matter that might otherwise be construed to be outside of its scope; (iii) the word “includes” and its derivatives means “includes, but is not limited to” and corresponding derivative expressions, (iv) a defined term has its defined meaning throughout the Separation Agreement, whether it appears before or after the place where it is defined, and (v) the headings and titles herein are for convenience only and shall have no significance in the interpretation hereof.
The parties agree that each of the Company Releasees is an intended third party beneficiary of this Separation Agreement and shall have the authority to enforce the provisions applicable to it, her, or Executive in accordance with the terms of hereof.
7. Entire Agreement. Except as otherwise specifically provided herein, this Separation Agreement constitutes the entire agreement of the Parties with respect to the subject matter hereof, contains all the covenants, promises, representations, warranties, and agreements between the Parties with respect to Executive’s separation from the Company and all positions therewith; provided, however, that nothing in this Agreement shall supersede the Sections in the Employment Agreement identified in Paragraph 3 (“Survival”) of this Separation Agreement. Any modification of this Separation Agreement will be effective only if it is in writing and signed by Executive and the Chief Executive Officer or General Counsel of the Company.
IN WITNESS WHEREOF, the parties hereto have executed this General Release on this ___ day of _______________.
|
|
CAESARS ENTERPRISE SERVICES, LLC |
|
|
|
|
|
|
|
EXHIBIT ONLY - NOT FOR EXECUTION |
|
|
|
|
|
|
|
By: |
|
|
|
Name: NAME Title: TITLE |
|
|
|
Executive
|
|
|
|
EXHIBIT ONLY - NOT FOR EXECUTION |
|
|
|
|
|
|
|
NAME |
|
|
|
|
|
5 |
|
Exhibit C
· |
Medical Insurance (including health, dental and vision) |
|
|
· |
Disability and Life and Accidental Death and Dismemberment Insurance |
|
|
· |
Accrued benefits under Savings and Retirement Plan |
|
|
6 |
Exhibit 10.96
Amendment No. 1 to Employment Agreement
This Amendment No. 1 (this “Amendment”) to the Employment Agreement (the “Agreement”), dated as of November 1, 2017, between Caesars Enterprise Services, LLC (the “Company”) and Christopher Holdren (“Executive”) is effective as of December 22, 2018 (the “Amendment Effective Date”).
WHEREAS, in consideration of Executive’s service and in order to induce Executive to remain in the employ of the Company, the Company desires to provide Executive with certain incentives;
WHEREAS, Executive and the Company wish to amend the Agreement; and
WHEREAS, pursuant to Section 17(b) of the Agreement, any amendment to the Agreement must be made in writing signed by the parties thereto.
NOW THEREFORE, in consideration for the promises and the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged and intending to be legally bound hereby, the parties hereby agree as follows:
1. The following Section, Section 9(f) is added to read as follows:
(f) Vesting of Long Term Incentive Awards upon Certain Terminations. Notwithstanding anything to the contrary herein, in the event that (i) Executive’s employment is terminated by the Company without Cause, (ii) Executive resigns for Good Reason, (iii) Executive’s employment is terminated by reason of Executive’s death or (iv) Executive is terminated by the Company on account of Executive’s Disability, in each case at any time between the Amendment Effective Date and December 5, 2019, all outstanding awards under the Caesars Entertainment Corporation 2012 Performance Incentive Plan, the Caesars Entertainment Corporation 2017 Performance Incentive Plan, and any other Company long-term incentive program will immediately vest; provided, however, that such awards will be settled in accordance with the terms of the applicable award agreement or incentive plan; and provided, further, that in the case of any award that is subject to Section 409A of the Code, such award shall be settled in a manner consistent with the requirements with Section 409A of the Code and nothing herein shall be construed to change the payment timing of such award in violation of Section 409A of the Code. In addition, any outstanding stock options will remain exercisable until the second anniversary of such termination; provided, however, that in no event shall the exercise period extend beyond the original term of the option. Notwithstanding anything to the contrary herein, any performance-based long-term incentive awards that vest pursuant to this Section 9(f) will vest (if at all) based on actual performance through the end of the applicable performance period.
2. This Amendment shall in all respects be governed by and construed in accordance with the laws of the State of Nevada as to all matters, including but not limited to matters of validity, construction, effect and performance.
|
3. This Amendment may be executed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.
4. Except as specifically amended by this Amendment, the Agreement shall remain in full force and effect in accordance with its terms.
[SIGNATURE PAGE FOLLOWS]
2 |
|
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the Amendment Effective Date.
Caesars Enterprise Services, LLC | |||
By: | /s/Monica Digilio |
||
|
|
By: Monica Digilio | |
Title: EVP & Chief Human Resources Officer | |||
|
|
|
|
|
|
/s/Christopher Holdren |
|
|
|
Christopher Holdren |
|
|
|
Executive |
|
3 |
Exhibit 31.3
I, Tony Rodio, certify that:
1. | I have reviewed this Amendment No. 1 to the annual report on Form 10-K/A of Caesars Entertainment Corporation; and |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report. |
Date: April 29, 2020 | By: | /s/ Tony Rodio | ||
Tony Rodio | ||||
Chief Executive Officer |
Exhibit 31.4
I, Eric Hession, certify that:
1. | I have reviewed this Amendment No. 1 to the annual report on Form 10-K/A of Caesars Entertainment Corporation; and |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report. |
Date: April 29, 2020 | By: | /s/ Eric Hession | ||
Eric Hession | ||||
Executive Vice President and Chief Financial Officer |
DT]/ 7>9+B,
MP/ +"G;B/@N/FO2Z3";FV8PGOF)X#Q"4[\1YK%X#C6>C$7@+$!3OQ(43:3Q;
ML_ \OE.\$Q<;I/%@(_ 6("C>B8L-TOAF#&\!@N*=N@L::3P;CZU-LIV);ZQ SZJ?#==E&IONM.9/6^&5_?APNC3^%DBFKZ-K/X"4$L#
M!!0 ( #%BG5 O0?;%40@ *06 4 >&PO
Cover Page - USD ($) $ in Billions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2019 |
Apr. 15, 2020 |
Jun. 30, 2019 |
|
Cover page. | |||
Document Type | 10-K/A | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-10410 | ||
Entity Registrant Name | CAESARS ENTERTAINMENT CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 62-1411755 | ||
Entity Address, Address Line One | One Caesars Palace Drive | ||
Entity Address, City or Town | Las Vegas | ||
Entity Address, State or Province | NV | ||
Entity Address, Postal Zip Code | 89109 | ||
City Area Code | 702 | ||
Local Phone Number | 407-6000 | ||
Title of 12(b) Security | Common stock, $0.01 par value | ||
Trading Symbol | CZR | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6.8 | ||
Entity Common Stock, Shares Outstanding | 683,987,258 | ||
Amendment Flag | true | ||
Amendment Description | Amendment No. 1 to Form 10-K/A This Amendment No. 1 to Form 10-K/A (the “Amendment”) amends the Annual Report on Form 10-K of Caesars Entertainment Corporation (the “Company,” “Caesars,” “we,” “us,” “our”) for the year ended December 31, 2019, which was originally filed with the Securities and Exchange Commission (the “SEC”) on February 25, 2020 (the “Original Report” and, as amended by this Amendment, the “2019 Annual Report”), and is being filed to provide certain information required by Items 10, 11, 12, 13, and 14 of Part III and to update certain of the information included in the list of exhibits included in Item 15 of Part IV and the Exhibit Index of this report. The information required by Items 10 through 14 of Part III was previously omitted from the Original Report in reliance on General Instruction G(3) to Form 10-K, which permits the information in the above-referenced items to be incorporated in the Form 10-K by reference from our definitive proxy statement if such statement is filed no later than 120 days after our fiscal year end. We are filing this Amendment to include Part III information in our Form 10-K because a definitive proxy statement containing this information will not be filed by us within 120 days after the end of the fiscal year covered by the Form 10-K. The reference on the cover of the Original Report to the incorporation by reference to portions of a definitive proxy statement or amendment to our Form 10-K into Part III of the Original Report is hereby deleted. In accordance with Rule 12b-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), Part III, Items 10 through 14 of the Original Report are hereby amended and restated in their entirety. Pursuant to Rule 12b-15 under the Exchange Act, this Amendment also contains new certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, which are attached hereto, and includes certain agreements that are related to named executive officers or that were filed after the Original Report. Because no financial statements are included in this Amendment and this Amendment does not contain or amend any disclosure with respect to Items 307 and 308 of Regulation S-K, paragraphs 3, 4, and 5 of the certifications have been omitted. Except as specifically set forth herein, this Amendment does not amend or otherwise update any other information in the Original Report. Accordingly, this Amendment should be read in conjunction with the Original Report and with our filings with the SEC subsequent to the Original Report. Merger Agreement with Eldorado Resorts, Inc. On June 24, 2019, Eldorado Resorts, Inc., a Nevada corporation (“ERI”), and Caesars entered into an Agreement and Plan of Merger (as amended by Amendment No. 1 to Agreement and Plan of Merger, dated as of August 15, 2019, and as it may be further amended from time to time, the “Merger Agreement”), pursuant to which ERI will acquire Caesars. The Merger Agreement provides for a business combination in which a wholly owned subsidiary of ERI will merge with and into Caesars (the “Merger”), with Caesars continuing as the surviving corporation and as a direct wholly owned subsidiary of ERI. | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Entity Central Index Key | 0000858339 | ||
Current Fiscal Year End Date | --12-31 |
V#:-'LAF37XGS5X%L%
MJ[5?^F. /3H+'[[ZW&>IV-5*02
M=3*[]:U&-I;ZYOZ[W?YW ]N4^ .M-4?\,N_?_2.
MC#V.!8_32/RJ=,B/\*T>17^5#8OC5(\9@R LXHIA%>#2U[>,^Z&(NA\,R?<#
M",B__JQ_:-EY +NLQ][?XB-K;FVV]B 2[# 6KM8MRL]-#,Q!#;&
MP,88/"("O#*)'NLI/\S9MI<+C$9B5H4Y@FB_XJGH3?N3^PE*9%CBY%"[98HF
MLJ)_9\Q!CE4NI0K'3NZ00CN984[.B;C4097P#]+:I>2X,H,%K55#&DL[?9H'
M!RUZ0/FFS$.;,6W-VG_PS456)O, 9A?S9Q9:H0-'MI!7R:5D#D MKLIA:CK;
MBIN1]1VLMF8FB?P+!+7AK/^LD$%#G-:!TT*UJCKV?'$0_> K'GA-O4_>].)F%
MR1S.8NZ+/!.\Z+'L\^!2W=E<#R'>%(A-6/80W1YQL9[P9N:W6"HNL#+4H%9\
M9G' 094&?J^XA\I;NW-.]"+5T@Q2P 4["BUJ2!"-FW<(0'*=-M0 LL(L:BOD
M/+>0(XLH ZRWNVWX^05^?#D_?F#T8&ET@^K,NG_G!KJARQ!+I-PKGHUXAID-
MOHO88T3IM1HY]3$$@4I"4UZ?'+T-%%!FJY45O]W9$_!F*ST1I@%8$PODZ$+^
M6_WJLG$8H >Z&-#(P@DF$Z>!=,]3AEQVG+FO%,2179;]>9VL[FWLS,'JM@,6+U66K=*L'E&PR!1'_1^>B9-
M*MM0UX<\V"N^\Q5W-\\W>YNL,Y[XX51$K(C_J!Y57#>A+?Q *;.P&P>4[PA]
MZLP%+/"B';307G<&200"E')?,-8(@1HKB)3!)
M9-_2@RP]L_""F5:LQJ#823Z.I4<%\RU!<68I&GW4%89I0I/F6=:P_ME"W!4,
MXCHT:*."I(Z;RD,L)W/.IF#7NT']7-Z!(_0P/TZ^_P'L(4&_@>+$*L=&)5%JA0 XM;>G'YN^;!>62-A<&;AC81J"/PL1ZG4,J_=G
B2W_\"6WD\ =I5@I3BVRJ'05EZLKS3U78'AN,'@1*MB=)$JLRBRGV7&^?R9F+: OG]HIL9()4_KV#^
MDSW[W9KF5=A7#'WI
D9^B*'-NB#*6 %@"\#8)
M0"YMM!HUC=ND;VNW.AFJ#?-"6>K/"TZ0:4"*]W%F+ZABTC4T,?HI^
P;M@(#8+EL_ I+.(9$*W2(0.RH)8,
MF\
\K7%&V+NF*M-[+&&=8"I[2^M41V
MZ^A9!R_%',?$818_#%S1EY[LD3>Q'I\'QIT70LZIPB%(&B*Z(LV"^@.X8B(H
MD8VA0Q?CL-,@%GZM$-*-##U.R:ZK?+HR8D'*!V1&^5O4E I3RZ,U36LVTQ4.
M50 LM2Q4+E[3:&W$5&0!G;79F-7">]*:K+(=9_5!:GYHY"QBAI29$&G(,VR0
MRJ )[<(FFW)V9.19CW$45#ZG"X,A+L@N7CA&D)W2^+8W:>I)&DW"6%[2'"%0
MGW9FQ9+6=G7T1NS)(B"1,)$W$W?DE9IM(A788 Y9%-#QYCO2-6[5
B[,> SF*IMC;8E]OV5;"SL_F=\"LK*
M5O7Z,Q-!!X,21 N$1\4H1"QE&KGEPY#(IWKI>VE/FU)4<0326Y3FN+JX/KN\
M[=Z=7UT:\,O%^=W=V9EQ 5\] XKZE3-L==__5+P[&=#\9<[0R !
M D " !( !T4 MYWB^R,=\#:M\;>;^ D81>.E"6>+X2SAQ# WR-P3F([PB=]6
MB'C:UK*L\PK[1+WL=MT/4/5%T>W_4H/$;2#C
MU\VN@RVNBF4?_3@VOI'1A7[+ZRM=
:<@"?5**:V41S.1@B:%]Q\#RNVU
BJ<;%@"O
M=GM6RNKY.