Sample Business Contracts

Employment Agreement - MGM Grand Inc. and Patrick Smith

Employment Forms

Employment Contract. Employers can customize an employment agreement that states the salary, benefits, working hours and other important provisions for their new or existing employee.
Consulting Agreement. Answer simple questions to build a contract with a consultant. Specify the services rendered, when payment is due, as well as IP rights.
Commission Agreement. Employers who compensate their sales employees based on commissions can prepare an agreement to reduce misunderstandings by specifying the base salary and how commissions are calculated.
Executive Employment Agreement. Companies may offer their business executives a contract that is different from the one provided to their regular employees. Executive employment agreements may be more complex because the compensation structure may include a combination of salary and commissions, provide for bonuses based on sales, stock or other financial targets, and include non-compete, confidentiality and severance provisions.
Sales Representative Contract. Independent sales representatives offer companies the potential to increase the sale of products or services without the burden of increasing headcount. Both parties should understand how commissions are calculated, when commissions will be paid, as well as how the representative will treat confidential information from the company and whether the representative may also sell a competing line of products or services.
More Employment Agreements

Sponsored Links

                        [LETTERHEAD OF MGM GRAND, INC.]
================================================================================


September 25, 1995



Mr. Patrick Smith
132 Ithaca
Newport Beach, CA 92663

Dear Patrick:

This letter will memorialize the agreement between you and MGM Grand, Inc. 
("Company").

1.   Commencement Date:  September 18, 1995
     -----------------

2.   Position/Title:  Vice President - Real Estate Operations
     --------------

3.   Compensation:
     ------------

     a)   Base:  $250,000 per year
          ----

     b)   Stock Options:  50,000 shares of MGM Grand, Inc.'s common stock 
          -------------
          pursuant to its Non-Qualified Stock Option Plan, and subject to the   
          following vesting schedule:

               End of Year                   Percent Vesting
               -----------                   ---------------

                    1                                0
                    2                                0
                    3                               20
                    4                               20
                    5                               20
                    6                               40

     c)   Acceleration of Stock Options:  If there is a change in control as a 
          -----------------------------
          result of a sale or exchange to a third party of outstanding common 
          stock (as distinguished from a change in control resulting from the
          issuance of treasury shares or from any other transaction) before the
          stock options are fully vested, all unvested stock options shall
          become fully vested as of the date of such sale or exchange.

     d)   Additional Compensation:  You will be entitled to receive an annual 
          -----------------------
          bonus, not to exceed 50% of your base compensation, at the sole 
          discretion of the Company's executive committee.
<PAGE>
 
Mr. Patrick Smith
September 25, 1995
Page 2



        e)   Taxes: All payments to you under this section will be subject to
             -----
             withholding taxes and other tax requirements, as applicable.

4.      Duties and Responsibilities: Those consistent with position/title.
        ---------------------------

5.      Exclusivity: You agree to devote your full business time to the Company,
        -----------
        and to render your services solely and exclusively for the Company and
        any of its affiliates.

6.      Representations and Warranties: You represent and warrant that:
        ------------------------------

        a)   You can and will be unconditionally licensed by all applicable
             gaming authorities, and other authorities, including those to which
             the Company may become subject in the future.

        b)   There are no existing conditions which may impair your ability to
             perform your duties hereunder.

        c)   You have the full right to enter into this agreement, and your
             entering into this agreement will not violate or conflict with any
             arrangements or agreements you have with any other entity.


7.      Termination Right: Each party shall have the right to terminate this
        -----------------
        agreement and your employment hereunder on thirty (30) days notice
        without any further obligations to the other, including, without
        limitation, any obligations under Paragraph 3 above.


8.      Employee Benefits: You shall be entitled to all the employee benefits
        -----------------
        that are in place at the Company as of the commencement date of this
        agreement, subject to change from time to time at the discretion of the
        Company.

<PAGE>
 
Mr. Patrick Smith
September 25, 1995
Page 3



If the foregoing properly reflects your understanding, please so acknowledge by 
signing where indicated below.

Sincerely yours,


J. Terrence Lanni
Chairman & CEO
MGM Grand, Inc.


Agreed to and acknowledged:


________________________
Patrick Smith


Dated: _________________