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EX10.3412a2088833zex10_34.htmEXHIBIT10.34
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Exhibit10.34
FIRSTAMENDMENT
TO
AMENDEDANDRESTATEDOPERATINGAGREEMENT
OF
VALVINOLAMORE,LLC
ThisFirstAmendmenttoAmendedandRestatedOperatingAgreement(the"Amendment")ofValvinoLamore,LLC,a
Nevadalimitedliabilitycompany(the"Company"),isadopted,enteredinto,andeffectiveasofApril16,2001(the
"EffectiveDate"),byandbetweenthePersonssignatoryheretowithreferencetothefollowingfacts:
A.TheMembersoftheCompanypreviouslyadoptedtheAmendedandRestatedOperatingAgreementoftheCompany
effectiveasofOctober3,2000(the"OperatingAgreement").
B.OntheEffectiveDate,pursuanttothatcertainSharePurchaseAgreement(the"SharePurchaseAgreement")dated
asofApril16,2001,byandbetweentheCompanyandBaronAssetFund,aMassachusettsbusinesstrust("BaronAsset
Fund"),BaronAssetFundismakingacontributiontothecapitaloftheCompanyintheamountoftwentymillioneight
hundredthousanddollars($20,800,000)inexchangeforanInterestintheCompanyandbecomingaMemberofthe
Company,allasprovidedforherein.
C.InordertoeffecttheadmissionofBaronAssetFundasaMemberandmakecertainamendmentstotheOperating
Agreementinconnectiontherewith,thepartiesheretodesiretoamendtheOperatingAgreementassetforthbelow.
NOW,THEREFORE,inconsiderationoftheforegoingandofthemutualagreementscontainedbelow,thepartieshereto
herebyagreeasfollows:
1.AllcapitalizedtermsnotdefinedinthisAmendmentshallhavethemeaningsascribedtothemintheOperating
Agreement.
2.NewdefinitionsshallbeaddedtoArticleIoftheOperatingAgreement,suchdefinitionstoreadasfollows:
Aruze/WynnGroup."Aruze/WynnGroup"meansAruze,Wynn,andanyMemberwhoisadirectorindirect
transfereeofeitherAruzeorWynn.
BAMCO."BAMCO"meansBAMCO,Inc.,aNewYorkcorporation.Withoutlimitingthegeneralityofthe
definitionofAffiliate,BAMCOshallbetreatedasanAffiliateofBaronAssetFund.
BaronAssetFund."BaronAssetFund"meansBaronAssetFund,aMassachusettsbusinesstrust.
SubsequentContribution."SubsequentContribution"meansadditionalcapitalcontributionstotheCompany
bytheMembersorAffiliatesoftheMembersinexchangeforadditionalCommonSharesorotherequityinterestsin
theCompany,excludingcapitalcontributionsmadeby,orequityinterestsissuedto,anyofficer,employee,or
consultantoftheCompanyinconnectionwithanycompensatorygranttosuchPersonofanequityinterestinthe
Companyoranoptionthereon.
3.Thedefinitionof"IndependentQualifiedAppraiser"inArticleIoftheOperatingAgreementshallbeamendedand
restatedinitsentiretytoreadasfollows:
IndependentQualifiedAppraiser."IndependentQualifiedAppraiser"meansanindependentoutsidequalified
appraiserappointedbytheManagingMembertodeterminethefairmarketvalueofcertainSharesoranInterestinthe
Company,ortheCompanyitself,inallcasesconsideringtheCompanyasagoingconcern,ortodeterminethefair
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marketvalueofanassetforpurposesofSection10.2(d).TodeterminethefairmarketvalueofanySharesoran
InterestintheCompany,theIndependentQualifiedAppraisershallfirstdeterminethefairmarketvalueofthe
Company

itself,andthefairmarketvalueoftheSharesorInterestshallbeequaltotheamountthatwouldbedistributedin
respectofsuchSharesorInterestif,basedonsuchfairmarketvalueoftheCompany,theCompanywerethen
dissolvedandliquidatedinaccordancewithArticleX.AnydeterminationbyanIndependentQualifiedAppraiseras
tofairmarketvalueshallbebindinguponallparties.
4.Thedefinitionof"PermittedTransferee"inArticleIoftheOperatingAgreementshallbeamendedandrestatedinits
entiretytoreadasfollows:
PermittedTransferee."PermittedTransferee"means:
(i)

inthecaseofaTransferbeingmadebyaMemberwhoispartoftheAruze/WynnGroup,(a)Okada
(b)animmediatefamilymemberofOkadaorWynn(c)anofficeroftheCompany(d)arevocable,
intervivostrustofwhichOkadaorWynnorafamilymemberofOkadaorWynnistrusteeorOkadaor
WynnorafamilymemberofOkadaorWynnisabeneficiaryor(e)anotherMemberoranentity
whollyownedbysuchMemberor

(ii)

inthecaseofaTransferbeingmadebyaMemberwhoisnotpartoftheAruze/WynnGroup,(a)the
MemberswhoarepartoftheAruze/WynnGroup,providedthatsuchTransferismadetoallMembers
oftheAruze/WynnGrouponaproratabasisinaccordancewiththerespectivePercentageInterestheld
byeachMemberoftheAruze/WynnGroup,or(b)iftheTransferisbeingmadebyBaronAssetFund,
theninadditiontothePermittedTransfereesdescribedinclause(a),anypubliclytraded,registered
mutualfundmanagedbyBAMCO.

5.Intheprovisoofthedefinitionof"Reorganization"inArticleIoftheOperatingAgreement,thereferenceto
"Section8.2,includingbutnotlimitedtoSection8.2(l)"shallbeamendedandrestatedinitsentiretytoreadasfollows:
"Sections8.2(b)through8.2(m),inclusive,includingbutnotlimitedtoSection8.2(l)."
6.Pursuanttosubparagraph(b)ofthedefinitionof"GrossAssetValue"inArticleIoftheOperatingAgreement,asof
immediatelypriortotheEffectiveDate(i.e.,asofimmediatelypriortotheadmissionofBaronAssetFundasaMember),the
GrossAssetValuesoftheCompany'sassetsshallbeadjustedtoreflectthattheaggregatenetvalueoftheCompany(i.e.,the
aggregategrossvalueoftheCompany'sassetsminustheaggregateamount,orabsolutevalue,ofitsliabilities)wasfive
hundredseventythreemilliononehundredfortythousandfourhundredsixtythreedollars($573,140,463).
7.PursuanttotheSharePurchaseAgreement,asoftheEffectiveDate,(i)BaronAssetFundiscontributingtothe
capitaloftheCompanycashintheamountoftwentymillioneighthundredthousanddollars($20,800,000),(ii)the
CompanyisissuingtoBaronAssetFundseventhousandsixhundredninetytwopointthirtyone(7,692.31)Common
Shares,and(iii)BaronAssetFundisbeingadmittedasaMemberoftheCompany.ImmediatelyfollowingsuchCapital
ContributionandissuanceofShares,theCapitalAccountandnumberofSharesofeachMembershall,asoftheEffective
Date,beassetforthonScheduleIattachedhereto.
8.ThepartiesheretoacknowledgeandagreethatnofurtheractionbytheBoardorotherwiseisrequiredunder
Section3.2orSection14.6oftheOperatingAgreementinconnectionwiththeadmissionofBaronAssetFundasaMember
andtheadoptionofthisAmendment.
9.Section5.1(a)(1)oftheOperatingAgreementshallbeamendedandrestatedinitsentiretytoreadasfollows:
(1)First,toMembersproratainaccordancewiththerespectiveamountsoftheirinitialCapitalAccountsas
shownonScheduleI(asamendedandrestatedupontheadmissionofBaronAssetFundasaMember),without
adjustmentforsubsequentallocationsofProfitsorLossesor
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otherwise,untileachMemberhasreceivedanaggregateamountofdistributionspursuanttothisSubsection5.1(a)(1)
equaltotheamountofsuchinitialCapitalAccountand
10.AtthebeginningofSection6.4oftheOperatingAgreement,thephrase"Thefollowingactionsshallrequirethe
approvalofaMajority"shallbeamendedandrestatedinitsentiretytoreadasfollows:"UponinitiationbytheManaging
Member,thefollowingactionsmaybetakenbytheCompanyonlyupontheapprovalofaMajority."
11.ThefirstsentenceofSection7.3oftheOperatingAgreementshallbeamendedandrestatedinitsentiretytoreadas
follows:
OtherthantheadmissionofanewMemberbytheManagingMemberpursuanttoSection8.2(l)ortheadmission
ofasuccessortoWynnunderSection14.17,anyPersonwhoisnotaProhibitedTransfereeshallbeadmittedto
membershipintheCompanyonlyupontheconsentofbothaMajorityandtheManagingMember,andsuchPerson
shallbeissuedsuchSharesforsuchconsiderationastheManagingMembershalldetermine,subjecttothetermsand
conditionsofthisAgreementprovided,however,thatanytransfereewhoisaPermittedTransfereeshallbeadmitted
asaMemberoftheCompany.
12.InSection7.4oftheOperatingAgreement,thephrase"thatpercentageoftheOfferedShareswhichisequaltothe
TotalCommonShares(excludingtheOfferedShares)ownedbyeachsuchMember('ApplicablePercentage')"shallbe
amendedandrestatedinitsentiretytoreadasfollows:"thatpercentageoftheOfferedShareswhichisequaltotheTotal
CommonShares(excludingtheOfferedShares)ownedbyeachsuchMemberdividedbytheTotalCommonShares
(excludingtheOfferedShares)ownedbyallsuchMembers('ApplicablePercentage')."
13.Section7.5oftheOperatingAgreementshallbeamendedandrestatedinitsentiretytoreadasfollows:
7.5TagAlongRight.IfWynnistheTransferorrequiredtoprovidetheNoticeofOfferunderSection7.4(a),
thenBaronAssetFundshallhavearight(inadditiontoitsrightsunderSection7.4)toparticipateinsuchTransfer
pursuanttotheprovisionsofthisSection7.5.DuringthefifteendayRefusalPerioddescribedinSection7.4(a),Baron
AssetFundmay,bywrittennoticetoWynn,electtoparticipateinsuchTransferandtosellthatpercentageofthe
TotalCommonSharesownedbyBaronAssetFundwhichisequaltotheTotalCommonSharesthatwillbesoldby
WynninsuchTransferdividedbytheTotalCommonSharesownedbyWynn.Thetermsandconditionsofsuch
Transfer(includingthepurchasepriceperCommonSharesoldinsuchTransfer,theidentityofthebuyer(s),andthe
consequencesresultingfromtheotherMembers'exerciseofanyrightsoffirstrefusal)shallbenolessfavorableto
BaronAssetFundthantoWynnprovided,however,that(i)thepurchasepriceperCommonSharepaidtoWynnmay
begreaterthanthatpaidtoBaronAssetFundif,andtotheextentappropriatetotakeintoaccountthat,theCapital
AccountbalanceassociatedwitheachCommonSharebeingsoldbyWynnexceedstheCapitalAccountbalance
associatedwitheachCommonSharebeingsoldbyBaronAssetFund,and(ii)Wynnmayenterintoservice,
noncompetition,orsimilaragreementswiththebuyerandreceiveappropriateconsiderationthereunder.
14.Section7.6(a)oftheOperatingAgreementshallbeamendedbyinsertingthephrase"(otherthanBaronAssetFund)"
immediatelyaftertheterm"holder"eachplacesuchtermappearstherein,andthelastsentenceofSection7.6(b)ofthe
OperatingAgreementshallbeamendedbyinsertingthefollowingattheendthereof:"(andtheforegoingprocedureshallbe
repeatedinrespectofanyIndirectTransferSharesnotpurchaseduntilsuchotherMembershavehadanopportunityto
purchaseanyremainingIndirectTransferShares)."
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15.AnewSection7.11shallbeaddedtotheOperatingAgreement,suchsectiontoreadasfollows:
7.11CooperationofCompany.IfaTransferofSharesisotherwiseinaccordancewiththeprovisionsofthis
Agreement,theCompanyshallreasonablycooperatewiththetransferorandtheproposedtransfereeinconnection
withseekinganyapprovalrequiredbytheGamingLawstoeffectuatesuchTransfer.
16.Section8.2(l)oftheOperatingAgreementshallbeamendedandrestatedinitsentiretytoreadasfollows:
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(l)admitadditionalinvestorsasMembersafterOctober3,2000,whosecollectiveInterestsmayatthediscretion
oftheManagingMemberhaveaPercentageInterestand/oraVotingInterestofuptotwentypercent(20%),andeach
ofwhosePercentageInterestandVotingInterestshalldiluteandreducethePercentageInterestandVotingInterestof
eachotherMemberonaproratabasisinaccordancewiththerespectivePercentageInterestofsuchMembersuch
Interestsshallbeissuedinexchangeforsuchconsiderationanduponsuchothertermsandconditionsasthe
ManagingMembershalldetermine,providedthatnoneoftheCommonSharescomprisingsuchInterestsshallhave
rightsorprivilegessuperiortoAruzeorWynnand
17.Section8.3(a)oftheOperatingAgreementshallbeamendedandrestatedinitsentiretytoreadasfollows:
(a)IftheManagingMemberinitiatesaSubsequentContribution,theManagingMembershalldeterminewhether
thesharesorotherequityinterestsproposedtobeissuedinconnectiontherewithshallbedesignatedasanadditional
classofshares,andshalldeterminethespecificrightsandpreferencesofsuchsharesorotherequityinterests.The
proposalofaSubsequentContributionshallbemadebywrittennoticetoeachoftheMembersatleastthirty
(30)dayspriortotheproposeddateofsuchSubsequentContribution,andshallinclude(i)theaggregateamountof
theproposedcontributions,and(ii)adescriptionoftheclassdesignation,rightsandpreferencesoftheshares
proposedtobeissuedinexchangefortheSubsequentContribution.
18.ThelastsentenceofSection8.3(b)oftheOperatingAgreementshallbeamendedbyinsertingthephrase"onthe
termsspecified"immediatelyaftertheterm"SubsequentContribution"eachplacesuchtermappearstherein.
19.Section8.4oftheOperatingAgreementshallbeamendedbydeletingtheword"or"attheendofparagraph(d)
thereof,byamendingandrestatingparagraph(e)thereofinitsentiretytoreadasfollows,andbyaddinganewparagraph(f)
theretotoreadasfollows:
(e)makeapublicofferingofsecuritiesor
(f)altertheorganizationalformoftheCompanytocreateapublicfinancingvehicletofacilitatethefinancing
oroperationoftheCompany'sbusiness(includingforthepurposeofmakingapublicofferingofsecuritiesofthe
Company),orcausesuchanentitytobeorganizedwithclassesofstockorotherinterestsheldbyWynnwith
disproportionatelygreatervotingpowerthantheclassesofstockorotherinterestsheldbytheotherMembers.
20.ThefirstsentenceofSection8.7oftheOperatingAgreementshallbeamendedandrestatedinitsentiretytoreadas
follows:
TheBoardshallmeetnolessfrequentlythanquarterly.
21.Section8.11oftheOperatingAgreementshallamendedandrestatedinitsentiretytoreadasfollows:
8.11InformationforBaronAssetFund.InadditiontotheinformationavailabletoitunderSections9.2and
9.3,BaronAssetFundshallbeentitledtoreceivecertaininformationasprovidedinthisSection8.11.Withinseven
(7)daysfollowingameetingoftheBoard,theCompanyshalldelivertoBaronAssetFundacopyofthematerials
preparedforanddistributedtothe
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representativesoftheBoardfortheiruseatthatmeeting.Ifprepared,minutesofthatmeetingshallalsobedelivered
toBaronAssetFundbytheCompanywithinseven(7)daysofbeingprepared.UponwrittenrequestfromBaronAsset
Fundprovidingatleastseven(7)days'notice,theCompanyshallmakeanofficeroftheCompanyreasonably
availabletoBaronAssetFundtodiscussthestateoftheCompany'sbusiness.BaronAssetFundagreesthatthe
informationprovidedtoitpursuanttothisSection8.11isandshallremainconfidential.Therightsauthorizedbythis
Section8.11maybedeniedtoBaronAssetFunduponitsrefusaltofurnishtheCompanywithanaffidavitthatsuch
reviewordiscussionisnotdesiredforanypurposenotrelatedtoitsInterestintheCompanyasaMember.
22.Section10.2(d)oftheOperatingAgreementshallbeamendedandrestatedinitsentiretytoreadasfollows:
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(d)AnyProfitsorLossesrealizedbytheCompanyuponthesaleofanyofitsPropertyshallberecognizedand
allocatedtotheMembersinthemannersetforthinArticleIV(totheextentanassetistobedistributedinkind,such
assetshallbedeemedtohavebeensoldatitsfairmarketvalueonthedateofdistribution,theProfitsorLosses
deemedrecognizeduponsuchdeemedsaleshallbeallocatedinaccordancewithArticleIVandtheamountofthe
distributionshallbeconsideredtobesuchfairmarketvalueoftheassetasofthedateofdissolution,whichfair
marketvalueshallbedeterminedbyanIndependentQualifiedAppraiserorbyagreementofalltheMembers).
23.Section11.8oftheOperatingAgreementshallbeamendedandrestatedinitsentiretytoreadasfollows:
11.8NoticeandReportingofLitigation.TheManagingMembershallprovidenoticetoeachMemberwhose
PercentageInterestexceedstwentyfivepercent(25%)withinfortyeight(48)hoursafterMaterialLitigationis
commencedbyoragainsttheCompany.TheManagingMembershallnotifyotherMembersofMaterialLitigationas
soonasreasonablypracticalafterthecommencementofsuchMaterialLitigationagainsttheCompany.The
ManagingMemberalsoshallcausetheCompanytoprepareandissuemonthlytoeachMemberwhosePercentage
Interestexceedstwentyfivepercent(25%)andtoBaronAssetFundastatusreportonallMaterialLitigation.Forthe
purposeofthisSection11.8,theterm"MaterialLitigation"meanslitigationotherthanroutinecollection,premises
liabilityandemploymentmatters.
24.Section13.3oftheOperatingAgreementshallberenumbered13.4,andanewSection13.3shallbeaddedtothe
OperatingAgreementtoreadasfollows:
13.3BaronNondisclosure.BaronAssetFundagreesthatneitherBaronAssetFundnoranyofitsAffiliates
shalluseanyinformationreceivedbyBaronAssetFundorbyanyofitsAffiliatespursuanttothisAgreementforany
purposeotherthanevaluatingandmanagingBaronAssetFund'sinvestmentintheCompany,andthatsuch
informationshallbekeptconfidentialandshallnotbedisclosedinanymannerwhatsoeverprovided,however,that
(i)BaronAssetFundoritsAffiliatesmaymakeanydisclosureofsuchinformationtowhichtheCompanygivesits
priorwrittenconsentand(ii)anyofsuchinformationmaybedisclosedtorepresentativesofBaronAssetFundwho
needtoknowsuchinformationforthesolepurposeofevaluatingandmanagingtheinvestmentofBaronAssetFund
intheCompany,whoagreetokeepsuchinformationconfidentialandwhoagreetobeboundbythetermsofthis
Section13.3tothesameextentasiftheywerepartieshereto.BaronAssetFundagreestoundertakereasonable
precautionstosafeguardandprotecttheconfidentialityofanysuchinformation,toacceptresponsibilityforany
breachofthisAgreementbyanyofitsAffiliatesorrepresentatives,andatitsexpensetotakeallreasonablemeasures
(includingbutnotlimitedtocourtproceedings)torestrainitsAffiliatesorrepresentativesfromprohibitedor
unauthorizeddisclosureoruseoftheinformation.NeitherBaronAssetFundnoranyofitsAffiliatesshallusethe
informationinanywaydirectlyorindirectlydetrimentaltotheCompany.
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25.IntheintroductoryparagraphofSection14.4oftheOperatingAgreement,thephrase"thefollowinglegends"shall
beamendedandrestatedinitsentiretytoreadasfollows:"legendsinsubstantiallythefollowingform."
26.Section14.6oftheOperatingAgreementshallbeamendedandrestatedinitsentiretytoreadasfollows:
14.6Amendments.AnyamendmenttothisAgreementshallbeadoptedandbeeffectiveasanamendment
heretoonlyupontheapprovaloftheManagingMemberprovided,however,that(i)noamendmenttothisAgreement
mayhaveadisproportionateadverseeffectontheVotingInterestorPercentageInterestofanyMemberwithoutboth
thatMember'sconsentandtheapprovaloftheBoard,and(ii)noamendmentmaybemadetothisSection14.6
withouttheunanimousconsentofalltheMembers.
27.ScheduleIoftheOperatingAgreementisamendedandrestatedinitsentiretytoreadasScheduleItothis
Amendment.
28.IntheeventofaconflictbetweenthetermsandconditionsofthisAmendmentandthetermsandconditionsofthe
OperatingAgreement,thetermsandconditionsofthisAmendmentshallcontrol.
29.OnandaftertheEffectiveDate,eachreferenceintheOperatingAgreementto"thisAgreement,""hereunder,"
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"hereof,""herein,"oranyotherexpressionofthelikeimportreferringtotheOperatingAgreementshallmeanandbea
referencetotheOperatingAgreementasamendedbythisAmendment,unlessthecontextoftheOperatingAgreement
requiresotherwise(suchasinthecontextofSections3.4and5.2oftheOperatingAgreement).Exceptasexpresslyamended
hereby,theprovisionsoftheOperatingAgreement,includingwithoutlimitationSection8.5oftheOperatingAgreement,
shallremaininfullforceandeffect.
30.Totheextentreasonablyapplicable,theprovisionsofArticleXIVoftheOperatingAgreementarehereby
incorporatedhereinandmadeaparthereof.ThisAmendmentmaybeexecutedintwoormorecounterparts,eachofwhich
shalltogetherconstituteoneandthesameinstrument.
INWITNESSWHEREOF,thisAmendmentisbeingexecuted,asofthedatefirstabovewritten,by(i)Wynn,asthe
Company'sManagingMemberpursuanttoSection14.6oftheOperatingAgreement,and(ii)BaronAssetFund,asanew
MemberjoininginandagreeingtobeboundbyallthetermsandconditionsoftheOperatingAgreementasamendedbythis
Amendment.

/s/StephenA.Wynn
StephenA.Wynn,ManagingMemberofValvinoLamore,LLC

BaronAssetFund

By:

/s/RonaldBaron
RonaldBaron
ChairmanandCEO

SCHEDULEI
MEMBERS,CAPITALACCOUNTS,ANDSHARES
ASOFAPRIL16,2001
Members

Address

StephenA.Wynn
AruzeUSA,Inc.
BaronAssetFund

Common
Shares

CapitalAccounts

$
$
$

302,740,544
270,399,919
20,800,000

100,000.00
100,000.00
7,692.31

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Exhibit10.34
SCHEDULEIMEMBERS,CAPITALACCOUNTS,ANDSHARESASOFAPRIL16,2001

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