Document:

EXHIBIT 10.2

EXHIBIT 10.2

 

Execution Copy

 

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this “Agreement”) by and between Venetian Casino Resorts, LLC (“VCR” or “the Company”)), a subsidiary of Las Vegas Sands Corp. (LVSC), a Nevada corporation, and George M. Markantonis (the “Executive”) is made as of March 17, 2015 (or such earlier date as may be mutually agreed in writing) (the “Effective Date”).

WHEREAS, the Company desires to employ the Executive under the terms of this Agreement, and the Executive desires to be employed by the Company subject to and accepting the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein and for other good and valuable consideration, the Company and the Executive (each individually a “Party” and together the “Parties”) agree as follows:

	1.	Term, Positions and Duties.

		1.1	Term. Subject to any early termination as provided in accordance with the terms of this Agreement, the term of employment shall be considered as commencing on the Effective Date of this Agreement and shall terminate at the close of business on March 1, 2020 at 11:59 PM (PST) (the “Term”).

		1.2	Duties and Responsibilities. During the Term, the Executive shall be employed as President and Chief Operation Officer of VCR (doing business as The Venetian-The Palazzo) and shall report directly to the President & Chief Operating Officer of LVSC. The Executive shall be responsible for and shall have such powers, duties and responsibilities as are generally associated with his offices, including oversight and management of all operations in Las Vegas, Nevada for VCR including: casino, hotel, MICE, food & beverage, entertainment, and the Sands Expo Center, provided that same may be modified and/or assigned to the Executive from time to time by the President & Chief Operating Officer, and subject to the supervision, direction and control of the President & Chief Operating Officer, Chief Executive Officer, and the Board of Directors of LVSC.

		1.3	Licensing and Compliance Requirement. The Executive shall file an application to obtain a finding of suitability as an officer of the Company (the “License”) with the Nevada State Gaming Control Board and the Nevada Gaming Commission (collectively, the “Nevada Gaming Authorities”), pursuant to the provisions of applicable Nevada gaming laws and the regulations of the Nevada Gaming Commission. The Executive agrees, at the Company’s sole cost and expense, to cooperate with the Nevada Gaming Authorities at all times, including but not limited to in connection with the 

	
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processing of such application and any investigation thereof undertaken by the Nevada Gaming Authorities. In the event the Executive’s application to obtain a finding of suitability is rejected, this Agreement shall automatically terminate within sixty (60) days from the date of such revocation. Such termination hereunder shall be considered a Termination for Cause pursuant to the provisions of Section 6.1.

		1.4	Performance. The Executive hereby accepts the employment described herein under the terms and conditions set forth in this Agreement. The Executive covenants and agrees that during the Term, Executive will faithfully and diligently perform the duties of Executive’s employment, devoting Executive’s full business and professional time, attention, energy, experience and ability to promote the business interests of the Company. The Executive further agrees that during the period of Executive’s employment with the Company, Executive will not engage in any other employment, occupation, consultation or business or professional pursuits whatsoever unless LVSC’s Chief Executive Officer shall consent thereto in writing; provided, however, that the foregoing shall not preclude the Executive from engaging in civic, charitable, or religious activities or from devoting a reasonable amount of time to private investments that do not unreasonably interfere or conflict with the performance of the Executive’s duties under this Agreement.

		1.5	Policies and Procedures. In addition to the terms herein, the Executive agrees to be bound by the LVSC’s Code of Conduct, as well as its policies and procedures as such may be amended by LVSC from time to time. In the event the terms in this Agreement conflict with LVSC’s policies and procedures, the terms herein shall take precedence.

	2.	Base Salary. During the Term, the Executive shall be entitled to receive an annual base salary of One Million One Hundred Thousand Dollars ($1,100,000.00) payable in equal bi-monthly installments or as otherwise in accordance with the regular payroll of the Company and subject to applicable withholdings (the “Base Salary”).

	3.	Annual Bonus.  The Executive shall be eligible to participate in the LVSC Management Incentive Plan governing eligibility to receive an annual cash bonus. The amount and payment of any bonus shall be based on the achievement of Company and Executive’s performance objectives that shall be reasonably determined annually by the LVSC; provided, that the bonus target will be seventy-five percent (75%) of Executive’s annual Base Salary (the “Target Annual Bonus”), determined in accordance with the Management Incentive Plan. Additionally, Executive shall not have any enforceable right to receive any bonus except for such bonuses as are formally approved by the Compensation Committee of LVSC’s Board of Directors. Any bonus payable pursuant to this Section shall be paid by the end of the first calendar quarter of the year following the year to which the bonus relates, subject to applicable withholdings. Upon termination of the 

	
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Executive’s employment for cause, the Company shall have no obligation to pay the Executive any bonus, except to the extent provided elsewhere in this Agreement.

	4.	Equity Awards. The Executive shall be eligible to receive equity awards under the Company’s 2004 Equity Award Plan (the “Plan”). Management will recommend that the Compensation Committee of the Company’s Board of Directors, which administers the Plan, approve a one-time award of non-qualified options to purchase one hundred thousand (100,000) shares of the Company’s common stock (the “Option Shares”) shall become vested and exercisable twenty-five percent (25%) on each of the second through fifth anniversaries of the Effective Date of this Agreement, conditioned on Executive’s continued employment except as provided herein.

The exercise price of the Option Shares described above will be equal to the Fair Market Value (as defined in the Plan) of the Company’s common stock on the Date of Grant (as defined in the Plan), and the Date of Grant will be the first day of March, 2015. The additional terms of any option award will be governed by the terms of an option agreement to be provided to Employee upon the grant of the options and the terms of the Plan.

Executive may become eligible to receive additional equity based compensation in such amounts, form, and upon such terms as the Company may decide in its own discretion, it being expressly understood and agreed that this paragraph does not create any obligation on the part of the Company to grant any equity.

	5.	Employment Benefit Programs.

		5.1	Benefit Plans. During the Term, the Executive shall be entitled to participate in any fringe group health, medical, dental, hospitalization, life, accident insurance or other welfare plans, and any tax-qualified pension (including 401k plan), tax-qualified profit sharing or tax-qualified retirement plans, which may be placed in effect or maintained by the Company during the Term hereof for the benefit of its employees generally, or for its senior executives subject to all restrictions and limitations contained in such plans or established by governmental regulation. In addition to the foregoing, the Executive shall be entitled to participate in such executive retirement and capital accumulation plans as may be established, sponsored or maintained by the Company and in effect from time to time for the benefit of its senior executives, including without limitation, any nonqualified supplemental executive retirement plan or deferred compensation plan.

		5.2	Permitted Leave. The Executive shall be entitled to vacations and holidays as provided in the Company’s vacation, holiday or flex day policies as in effect from time to time, but no less than the following: four (4) weeks of 

	
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paid vacation leave per year at such times as may be requested by the Executive and approved by the Company. No more than three (3) weeks of vacation shall be taken consecutively. Up to two (2) weeks of vacation may be carried over to the following year (but not to the next). The Executive shall also be entitled to the same sick time, leaves of absence, and other time-off to which other senior executives of the Company are entitled, and in accordance with the rules and regulations applicable to all other employees of the Company.

		5.3	Relocation Assistance. The Company will pay Executive’s moving expenses to relocate Executive and his family from Nassau, Bahamas and/or Houston, Texas to Las Vegas, NV, according to The Las Vegas Sands Corporation Domestic Relocation Policy (including the additional items described below) and the Relocation Repayment Agreement, a copy of which will be given to Executive. This includes: 90 days of temporary living (no more than 30 days housing on property), airfare and reasonable expenses back and forth for 90 days for Executive or his spouse.

5.3.1  To the extent necessary, the Company will also provide assistance to Executive in securing such VISAs and work permits as may be necessary for him to assume his duties under this Agreement.

	6.	Termination.

		6.1	Termination by the Company for Cause.

6.1.1  “Cause” shall mean:

		(a)	(i) conviction of a felony, misappropriation of any material funds or material property of the Company or any of its Affiliates, (ii) commission of fraud or embezzlement with respect to the Company or any of its Affiliates or (iii) any material act of dishonesty relating to the Executive’s employment by the Company resulting in direct or indirect personal gain or enrichment at the expense of the Company or any of its Affiliates;

		(b)	use of alcohol or drugs that renders the Executive materially unable to perform the functions of his job or carry out his duties to the Company;

		(c)	a material breach of this Agreement by the Executive;

		(d)	a material breach of LVSC’s Code of Conduct, or

		(e)	committing any act or acts of serious and willful misconduct (including disclosure of Confidential Information or other material 

	
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breach of Exhibit B of this Agreement) that is likely to cause a material adverse effect on the business of the Company or any of its Affiliates;

provided that, with respect to (b) or (c) above, the Company shall have first provided the Executive with written notice stating with specificity the acts, duties or directives the Executive has committed or failed to observe or perform, and the Executive shall not have corrected the acts or omissions complained of within thirty (30) days of receipt of such notice.

6.1.2  In the event the Company terminates the Executive’s employment for Cause after the applicable cure period, if any, the Executive shall be entitled to “Standard Benefits” defined as follows:

		(a)	Base Salary at the rate in effect at the time of the termination through the date of termination of employment, subject to applicable withholdings;

		(b)	Reimbursement for expenses incurred, but not paid prior to such termination of employment, subject to the receipt of supporting information by the Company; and

		(c)	Such rights to other compensation and benefits as may be provided in applicable plans and programs of the Company, according to the terms and conditions of such plans and programs.

The exercise and termination of the Executive’s equity referred to in Section 4 and any other equity grants subsequently awarded to the Executive, pursuant to the Equity Plan during the Term (and any extensions of the Term) shall be governed by the Plan and the Executive’s equity agreements issued pursuant to the Plan.

6.1.3  Executive may terminate this Agreement on thirty (30) days written notice without Good Reason and receive the Standard Benefits.

		6.2	Termination by the Company Without Cause or By the Executive for Good Reason. In the event that the Company terminates the Executive’s employment without Cause or the Executive terminates Executive’s employment for Good Reason, in addition to the Standard Benefits, the Executive shall thereupon be entitled to:

		(a)	Continuation of the Base Salary (in effect on the date of termination), payable in bi-monthly installments or otherwise in accord with the Company’s policies and procedures, for twelve months if termination occurs prior to March 1, 2016 or six months 

	
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thereafter (the “Applicable Period”) (the “Salary Continuation”), subject to applicable withholdings.

		(b)	Continued participation in the health and welfare benefit plans of the Company described in Section 5.1 for the Executive and Executive’s spouse and dependents, if any, during the Applicable Period.

		(c)	Any Bonus awarded for the year prior to termination but not yet paid in the year of termination, to be paid at the time such bonuses are awarded in the ordinary course and subject to applicable withholding and Company payroll practice.

		(d)	A Bonus for the year of the termination, pro-rated for the amount of time during that year Executive was employed by the Company. The amount and payment of that Bonus will be reasonably determined based on the achievement of the Company and Executive’s performance objectives. The Bonus will be determined and paid at the time such bonuses are awarded in the ordinary course and subject to applicable withholding and Company payroll practice.

		6.3	Termination By the Executive For Good Reason. The Executive may terminate Executive’s employment hereunder during the Term for Good Reason (as such term is defined below), on the terms and in the manner set forth in this Agreement.

		(1)	“Good Reason” shall mean any of the following:

(a) (i) a material breach of this Agreement by the Company; (ii) a reduction in the Executive’s Base Salary; (iii) a material change in the duties and responsibilities of office that would cause the Executive’s position to have less dignity, importance or scope than intended at the Effective Date as set forth herein; or (iv) a “change of control” as defined in the Plan; provided, however, that “Good Reason” shall not be deemed to occur solely as a result of a transaction in which the Company becomes a subsidiary of another company, assuming no “change of control”, so long as the Executive’s duties and responsibilities of office are not materially changed as they relate solely to the Company;

		(2)	If the Executive determines that Good Reason exists for termination of this Agreement and Executive’s employment with the Company for any of the reasons described in Section 6.3(1)(a) above, the Executive shall provide the Company with written notice of Executive’s intention to terminate Executive’s employment.  Such 

	
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notice shall include a reasonably detailed description of the alleged grounds for termination. The Company shall have 30 business days from the date of its receipt of such notice within which to cure the alleged grounds for termination.

		6.4	Termination Upon Expiration of Terms. In case of a termination of employment upon its expiration pursuant to Section 1.1 without renewal or superseding Agreement between the parties, Executive shall be entitled to receive the Standard Benefits set forth in Section 6.1.2 (a)-(c) above and any Bonus awarded for the year prior to termination but not yet paid in the year of termination.

		6.5	Termination due to the Executive’s Disability or Death.

In the case of a termination of Executive’s employment hereunder due to the Executive’s disability or death, the Executive’s or, in event of death, Executive’s estate, shall be entitled to receive the Standard Benefits and:

(i)            Continuation of the Base Salary, subject to applicable withholdings, payable in bi-monthly installments or otherwise in accord with the Company’s policies and procedures for the Applicable Period following termination of employment.

(ii)            Any Bonus awarded for the year prior to termination but not yet paid in the year of termination, to be paid at the time such bonuses are awarded in the ordinary course and subject to applicable withholding and Company payroll practice.

(iii)            Continued participation in the health and welfare benefit plans of the Company described in Section 5.1 for the Executive’s spouse and dependents, if any, and the Executive, in the event of disability, during the Applicable Period following termination of employment.

		6.6	Health and Welfare Benefit Equivalents. To the extent that the health and welfare benefits provided for in Section 6 are not permissible after termination of employment under the terms of the benefit plans of the Company then in effect (and cannot be provided through the Company’s paying the applicable premium for the Executive and/or Executive’s spouse and dependents, if any, under COBRA), the Company shall pay to the Executive or Executive’s estate, as applicable, such amount as is necessary to provide the Executive and/or Executive’s spouse and dependents, if any, after tax, with an amount equal to the cost of acquiring, for the Executive and Executive’s spouse and dependents, if any, on a non-group basis, for the required period, those health and other welfare benefits that would 

	
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otherwise be lost to the Executive and Executive’s spouse and dependents, if any, as a result of the Executive’s termination.

		6.7	Timing of Certain Payments. Subject to Sections 6.8 & 6.9: (a) any amounts payable under Sections 6.1-6.5 shall be paid as soon as practicable, and in any event within 30 days following termination of employment; and (b) any reimbursements for expenses incurred under Sections 6.1-6.5 (to the extent such reimbursements are treated as deferred compensation subject to Section 409A) shall be paid as soon as practicable following submission of the claims but in any event not later than the third calendar year following the calendar year in which your separation from service occurs.

		6.8	Section 409A. For purposes of this Agreement, “Section 409A” means Section 409A of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder (and such other Treasury or Internal Revenue Service guidance) as in effect from time to time. In addition, for purposes of this Agreement, with respect to payments of any amounts that are considered to be “deferred compensation” subject to Section 409A, references to “termination of employment” (and substantially similar phrases) shall be deemed to refer to “separation from service” within the meaning of Section 409A (without application of any alternative definitions permitted thereunder) and shall be interpreted and applied in a manner that is consistent with the requirements of Section 409A.

		a)	It is intended that the provisions of this Agreement comply with Section 409A, and all provisions of this Agreement shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. In this regard, the provisions of this Section shall only apply if, and to the extent, required to avoid the imputation of any tax, penalty or interest pursuant to Section 409A. In light of the uncertainty as of the date hereof with respect to the proper application of Section 409A, the Company and you agree to negotiate in good faith to make amendments to this Agreement as the parties mutually agree are necessary or desirable to avoid the imposition of taxes or penalties under Section 409A. Notwithstanding the foregoing, you shall be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on or for your account in connection with this Agreement (including any taxes and penalties under Section 409A), and neither the Company nor any affiliate shall have 

	
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any obligation to indemnify or otherwise hold you (or any beneficiary) harmless from any or all of such taxes or penalties.

		b)	Except as permitted under Section 409A, any deferred compensation that is subject to Section 409A and is payable to or for your benefit under any Company-sponsored plan, program, agreement or arrangement may not be reduced by, or offset against, any amount owing by you to the Company.

		c)	Notwithstanding anything in this Agreement to the contrary, in the event that you are deemed to be a “specified employee” within the meaning of Section 409A(a)(2)(B)(i), no payments under Sections 6.1-6.5 that are “deferred compensation” subject to Section 409A shall be made to you prior to the date that is six (6) months after the date of your “separation from service” or, if earlier, your date of death. Following any applicable six (6) month delay, all such delayed payments will be paid in a single lump sum on the earliest permissible payment date. In addition, for a period of six months following the date of separation from service, to the extent that the Company reasonably determines that any of the benefit plan coverages described herein may not be exempt from U.S. federal income tax, you shall in advance pay to the Company an amount equal to the stated taxable cost of such coverages for six months. At the end of such six-month period, you shall be entitled to receive from the Company a reimbursement of the amounts paid by you for such coverages.

		d)	For purposes of Section 409A, each of the payments that may be made under the Agreement are designated as separate payments.

		e)	To the extent that any reimbursement for expenses or miscellaneous items are taxable to you, any such reimbursement payment due to you shall be paid to you as promptly as practicable, and in all events on or before the last day of your taxable year following the taxable year in which the related expense was incurred. Any such reimbursements are not subject to liquidation or exchange for another benefit and the amount of such benefits and reimbursements that you receive in one taxable year shall not affect the amount of such benefits or reimbursements that you receive in any other taxable year.

		6.9	Release. Notwithstanding any other provision of this Agreement to the contrary, the Executive acknowledges and agrees that any and all payments to which the Executive is entitled under this Section 6 are conditional upon and subject to the Executive’s execution, within 60 days following termination of Executive’s employment, of the General Release and Covenant Not to Sue in the form attached hereto as Exhibit A (which form 

	
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may be reasonably modified to reflect changes in the law), of all claims the Executive may have against the Company, its Affiliates and their respective directors, officers and employees, except as to matters covered by provisions of this Agreement that expressly survive the termination of this Agreement, such as the provisions of this Section 6.

	7.	Equitable Relief. The Executive acknowledges that the breach of Exhibit B of this Agreement by the Executive will cause irreparable injury to the Company and/or its Affiliates which could not be adequately compensated in money damages and shall entitle the Company and/or its Affiliates to all equitable remedies, including without limitation injunctive relief, specific performance and restraining orders. Equitable relief shall be in addition to all other remedies available to the Company. Notwithstanding the foregoing, the Company’s right to damages or other remedies for material breach by the Executive shall be unrestricted.

	8.	Indemnification & Insurance.

(a)            Indemnity. The Company agrees to indemnify and hold harmless Executive from all liability and costs incurred (including reasonable attorney’s fees and disbursements) as a consequence of claims by third parties, whether or not derivatively on behalf of the Company resulting from or growing out of Executive’s status as or as a result of Executive’s having been an officer or director of (or counsel to) the Company or any affiliate thereof, to the full extent permitted by law. In no event shall the terms, provisions and conditions of the indemnity provided for hereunder be less than the same as those presently provided for under the Certificate of Incorporation and By-Laws of the Company. Said terms, provisions and conditions of indemnity shall remain an independent, contractual obligation of the Company to Executive from and after the date hereof regardless of how the Company might hereafter amend or change its Certificate of Incorporation or By-Laws to provide for different terms, conditions and provisions of indemnity for other officers and directors of the Company. In the event the Company should amend its Certificate of incorporation or Bylaws to provide for different terms, conditions and provisions of indemnity after the effective date hereof, Executive shall be notified in writing of the change. Executive shall thereafter have thirty (30) days to elect in writing to accept the changed conditions of indemnity as a modification to the Company’s contractual obligation hereunder or to continue under the terms of indemnity as provided for herein. The Company’s agreement to provide indemnity hereunder shall survive the termination of this contract regardless of the cause of termination. The Company shall advance promptly as incurred reasonable fees and disbursements of counsel for Executive in defending Executive against any claims for which the Company would be so required to indemnify Executive provided (i) Executive shall otherwise comply with such mandatory requirements of Delaware law as may be required for such indemnification and (ii) Executive shall cause Executive’s counsel to cooperate fully in good faith with such requests as the 

	
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Company or its counsel may reasonably make in order to endeavor to keep such legal fees at a minimum level consistent with an adequate defense of Executive.

(b)            Officers & Directors. The Company agrees to provide, at no expense to the Executive, insurance insuring Executive in Executive’s capacity as an officer and/or director of the Company and its affiliates in such form and amount substantially equal to that presently maintained by the Company for or covering its executive officers and directors or in such other form and amount as Executive and Company may, from time to time, in good faith agree are reasonable and appropriate for executive officers and directors of corporations substantially similar in size to the Company.

	9.	Entire Agreement. This Agreement contains the entire agreement between the Parties concerning the subject matter hereof and supersedes all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral, between the Parties with respect thereto.

	10.	Assignability; Binding Nature. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors, heirs and assigns. No rights or obligations of the Parties may be assigned except that such rights or obligations may be assigned or transferred pursuant to a merger or consolidation in which the Company is not the continuing entity, or the sale or liquidation of all or substantially all of the assets of the Company, provided that the assignee or transferee is the successor to all or substantially all of the assets of the Company and such assignee or transferee assumes the liabilities, obligations and duties of the Company, as contained in this Agreement, either contractually or as a matter of law. The Company may also assign this Agreement to an Affiliate at its sole discretion.

	11.	Amendment. No provision in this Agreement may be amended, changed or modified unless such amendment, change or modification is agreed to in writing.

	12.	Construction. The terms and conditions of this Agreement shall be construed as a whole according to its fair meaning and not strictly for or against any Party. The Parties acknowledge that each of them has reviewed this Agreement and has had the opportunity to have it reviewed by their attorneys and that any rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not apply in the interpretation of this Agreement.

	13.	Waiver. Neither the failure nor any delay on the part of any Party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver of that right, remedy, power or privilege. No provision in this Agreement may be waived unless such waiver is agreed to in writing.

	14.	Partial Invalidity. If any provision or provisions of this Agreement shall be held to be invalid, illegal, or unenforceable for any reason whatsoever.

	
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		a)	The validity, legality, and unenforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; and

		b)	To the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal, or unenforceable) shall be construed so as to give maximum possible effect to the intent manifested by the provision held invalid, illegal, or unenforceable.

	15.	Notices. All notices, consents, or other communications provided for hereunder, including without limitation notices of default, termination of this Agreement and readiness for inspection of portions of the employment, shall be deemed effective (i) on the date when hand-delivered; (ii) on the date when forwarded by confirmed facsimile transmission; or (iii) upon receipt of certified mail, return receipt requested and postage prepaid. All notices shall be addressed to the Parties at their respective addresses set forth below:

		As to the Company:	Venetian Casino Resort, LLC

Attn: General Counsel

3355 Las Vegas Boulevard South

Las Vegas, NV 89109

		With copy to:	Las Vegas Sands Corp.

Attn: Office of the General Counsel

3355 Las Vegas Boulevard South

Las Vegas, NV 89109

As to the Executive:

With copy to Executive:

at the last known address in the Company’s records

	16.	Governing Law. This Agreement shall be governed by and construed and interpreted in accordance with the laws of Nevada without reference to the principles of conflict of laws, which could cause the application of the law of any other jurisdiction.

	17.	Dispute Resolution. Except as set forth in Section 7 above, disputes between the Company and Executive shall be pursuant to arbitration as described in Exhibit C hereto.

	
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	18.	Headings. The headings of the 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.

	19.	Counterparts. This Agreement may be executed in counterparts each of which shall be deemed an original and all of which shall constitute one and the same agreement with the same effect as if all Parties and signed the same signature page.

IN WITNESS WHEREOF, the Parties have executed and delivered this Agreement on the date first set forth above.

	
VENETIAN CASINO RESORT, LLC:

 

 

		
EXECUTIVE:

 	
	
By:

	
/s/ Robert G. Goldstein

		
By:

	
/s/ George M. Markantonis

	
	Name:

Title:	 		 	 	

 

 

 

	
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EXHIBIT A

GENERAL RELEASE

AND COVENANT NOT TO SUE

TO ALL WHOM THESE PRESENTS SHALL COME OR MAY CONCERN, KNOW that:

George M. Markantonis (the “Executive”), on the Executive’s own behalf and on behalf of the Executive’s descendants, dependents, heirs, executors and administrators and permitted assigns, past and present, in consideration for the amounts payable and benefits to be provided to the Executive under that Employment Agreement dated as of March 1, 2015 (the “Employment Agreement”) by and between Las Vegas Sands Corp., a Nevada corporation (the “Company”) and the Executive, does hereby covenant not to sue or pursue any litigation against, and waives, releases and discharges the Company, its assigns, affiliates, subsidiaries, parents, predecessors and successors, and the past and present shareholders, employees, officers, directors, representatives and agents of any and all of them (collectively, the “Company Group”), from any and all claims, demands, rights, judgments, defenses, actions, charges or causes of action whatsoever, of any and every kind and description, whether known or unknown, accrued or not accrued, that the Executive ever had, now has or shall or may have or assert as of the date of this General Release and Covenant Not to Sue against the Company Group relating to his employment with the Company or the termination thereof or Executive’s service as an officer or director of any subsidiary or affiliate of the Company or the termination of such service, including, without limiting the generality of the foregoing, any claims, demands, rights, judgments, defenses, actions, charges or causes of action related to employment or termination of employment or that arise out of or relate in any way to the Age Discrimination in Employment Act of 1967 (“ADEA,” a law that prohibits discrimination on the basis of age), the National Labor Relations Act, the Civil Rights Act of 1991, the Americans With Disabilities Act of 1990, Title VII of the Civil Rights Act of 1964, the Employee Retirement Income Security Act of 1974, the Family and Medical Leave Act, the Sarbanes-Oxley Act of 2002, all as amended, and other Federal, state and local laws relating to discrimination on the basis of age, sex or other protected class, all claims under Federal, state or local laws for express or implied breach of contract, wrongful discharge, defamation, intentional infliction of emotional distress, and any related claims for attorneys’ fees and costs; provided, however, that nothing herein shall release the Company from any of its obligations to the Executive under the Employment Agreement (including, without limitation, its obligation to pay the amounts and provide the benefits upon which the execution, delivery and non-revocation of this General Release and Covenant Not to Sue is conditioned) or any rights the Executive may have to indemnification under any charter or by-laws (or similar documents) of any member of the Company Group or any insurance coverage under any directors and officers insurance or similar policies.

	
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The Executive further agrees that this General Release and Covenant Not to Sue may be pleaded as a full defense to any action, suit or other proceeding covered by the terms hereof that is or may be initiated, prosecuted or maintained by the Executive or the Executive’s heirs or assigns. The Executive understands and confirms that the Executive is executing this General Release and Covenant Not to Sue voluntarily and knowingly, but that this General Release and Covenant Not to Sue does not affect the Executive’s right to claim otherwise under ADEA. In addition, the Executive shall not be precluded by this General Release and Covenant Not to Sue from filing a charge with any relevant Federal, state or local administrative agency, but the Executive agrees to waive the Executive’s rights with respect to any monetary or other financial relief arising from any such administrative proceeding.

In furtherance of the agreements set forth above, the Executive hereby expressly waives and relinquishes any and all rights under any applicable statute, doctrine or principle of law restricting the right of any person to release claims that such person does not know or suspect to exist at the time of executing a release, which claims, if known, may have materially affected such person’s decision to give such a release. In connection with such waiver and relinquishment, the Executive acknowledges that the Executive is aware that the Executive may hereafter discover claims presently unknown or unsuspected, or facts in addition to or different from those that the Executive now knows or believes to be true, with respect to the matters released herein. Nevertheless, it is the intention of the Executive to fully, finally and forever release all such matters, and all claims relating thereto, that now exist, may exist or theretofore have existed, as specifically provided herein. The parties hereto acknowledge and agree that this waiver shall be an essential and material term of the release contained above. Nothing in this paragraph is intended to expand the scope of the release as specified herein.

This General Release and Covenant Not to Sue shall be governed by and construed in accordance with the laws of the State of Nevada, applicable to agreements made and to be performed entirely within such State, without regard to principles of conflicts of laws which would cause the application of the law of any other jurisdiction.

To the extent that the Executive is forty (40) years of age or older, this paragraph shall apply. The Executive acknowledges that the Executive has been offered a period of time of at least twenty-one (21) days to consider whether to sign this General Release and Covenant Not to Sue, which the Executive has waived, and the Company agrees that the Executive may cancel this General Release and Covenant Not to Sue at any time during the seven (7) days following the date on which this General Release and Covenant Not to Sue has been signed by all parties to this General Release and Covenant Not to Sue. In order to cancel or revoke this General Release and Covenant Not to Sue, the Executive must deliver to the Chief Executive Officer of the Company written notice stating that the Executive is canceling or revoking this General Release and Covenant Not to Sue. If this General Release and Covenant Not to Sue is timely cancelled or revoked, none of the provisions of this General Release and Covenant Not to Sue shall be effective or enforceable and the Company shall not be obligated to make the payments to the Executive or to provide the Executive with the other benefits described in the Employment Agreement 

	
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and all contracts and provisions modified, relinquished or rescinded hereunder shall be reinstated to the extent in effect immediately prior hereto.

The Executive acknowledges and agrees that the Executive has entered into this General Release and Covenant Not to Sue knowingly and willingly and has had ample opportunity to consider the terms and provisions of this General Release and Covenant Not to Sue.

IN WITNESS WHEREOF, the parties hereto have caused this General Release and Covenant Not to Sue to be executed on this _20th__ day of February, 2015.

		
Venetian Casino Resort, LLC

 	 
	 			
	 			
		
By:

	
/s/ Robert G. Goldstein

	 
		
Its:

	 	 
	 			
	 			
		
EXECUTIVE

 	 
	 			
	 			
		
/s/ George M. Markantonis

	 
		
George M. Markantonis

	 

 

 

	
Executive Initials:

	/s/ GM 

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Exhibit B

Restrictive Covenants, Confidentiality, Warranties & Acknowledgements

1.            Restrictive Covenant and Covenants not to Engage in Certain Other Acts.

		1.1	Restrictive Covenant. The Executive acknowledges and recognizes the highly competitive nature of the businesses of the Company and its subsidiaries and Affiliates and accordingly agrees that during the Term and for a period equal to one (1) year from the date of termination of employment, the Executive shall not, directly, either as principal, employee, partner, consultant, officer or director, own, manage, operate, control or otherwise engage in, any casino hotel in (i) Clark County, Nevada (including, without limitation, the City of Las Vegas), (ii) the Macau Special Administrative Region of The People’s Republic of China or the Republic of Singapore, (iii) Bethlehem, Pennsylvania or (iv) any other location in which the Company or any of its Affiliates is doing business or has made substantial plans to commence doing business, in each case at the time of the Executive’s termination.

		1.2	Non-solicitation. In addition to, and not in limitation of, the provisions of Section ___, the Executive agrees, for the benefit of the Company and its Affiliates, that during the Term and for the period commencing on the date of the Executive’s termination and ending on the second anniversary of such date of termination, the Executive shall not, directly, either as principal, employee, partner, officer or director, on behalf of the Executive or any other person or entity other than the Company or its Affiliates, (i) solicit or induce, or attempt to solicit or induce, directly or indirectly, any person who is, or during the six months prior to the termination of the Executive’s employment with the Company was, an employee or agent of, or consultant to, the Company or any of its Affiliates to terminate its, his or her relationship therewith, or (ii) hire or engage any person who is, or during the six months prior to the termination of the Executive’s employment with the Company was, an employee, agent of or consultant to the Company or any of its Affiliates.

		1.3	General. The Executive understands that the provisions of this Section may limit Executive’s ability to earn a livelihood in a business similar to the business of the Company but he nevertheless agrees and hereby acknowledges that (i) such provisions do not impose a greater restraint than is necessary to protect the goodwill or other business interests of the Company and its Affiliates, (ii) such provisions contain reasonable limitations as to time and scope of activity to be restrained, (iii) such provisions are not harmful to the general public, (iv) such provisions are not unduly burdensome to the Executive, and (v) the consideration provided hereunder is sufficient to compensate the Executive for the restrictions 

	
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contained in this Section. In consideration of the foregoing and in light of the Executive’s education, skills and abilities, the Executive agrees that he shall not assert that, and it should not be considered that, any provisions of Section otherwise are void, voidable or unenforceable or should be voided or held unenforceable.

It is expressly understood and agreed that although the Executive and the Company consider the restrictions contained in this Exhibit to be reasonable, if a judicial determination is made by a court of competent jurisdiction that the time or territory or any other restriction contained in this Agreement is an unenforceable restriction against the Executive, the provisions of this Agreement shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent as such court may judicially determine or indicate to be enforceable. Alternatively, if any court of competent jurisdiction finds that any restriction contained in this Agreement is unenforceable, and such restriction cannot be amended so as to make it enforceable, such finding shall not affect the enforceability of any of the other restrictions contained herein.

In the event that the Executive violates any of the restrictive covenants set forth in Sections 1.1 or 1.2, in addition to any other remedy which may be available (i) at law or in equity, (ii) pursuant to any other provision of this Agreement or (iii) pursuant to any applicable equity award agreement, all outstanding restricted stock units to purchase shares of the Company’s common stock and other unvested equity awards granted to the Executive shall be automatically forfeited effective as of the date on which such violation first occurs.

		1.4	Waiver. Notwithstanding anything to the contrary in this Exhibit, in the event of a termination by the Company without Cause or by the Executive for Good Reason, and the Executive waives all right to payments and other compensation under this Agreement with respect to the Salary Continuation or any part of thereof, then the restrictive covenant of this Exhibit shall be inapplicable to the Executive with respect to the period for which compensation is so waived.

		1.5	Survival. The Executive agrees that the provisions of this Exhibit shall survive the termination of this Agreement and the termination of the Executive’s employment, provided that the restrictive covenants in this Exhibit shall not apply to termination of employment due to expiration of the Term in Section 1.1. The Company agrees that the restrictive covenants contained herein are in consideration for the payments described in Sections 2-4 and 6 of this Agreement.

2.            Covenants to Protect Confidential Information:

	
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		a)	As used in this Agreement:

		(i)	“Confidential Information” shall mean all material private, personal, confidential or proprietary information, tangible or intangible, owned by or pertaining to the Company or its Affiliates, which information was learned or acquired by the Executive as a result of the employment relationship with the Company; provided, however, that “Confidential Information” shall not include information or data: (i) generally publicly known, (ii) learned by the Executive from third persons with a legal right to disclose such information or (iii) discovered by the Executive through means entirely independent from and in no way arising from the disclosure to the Executive by the Company.

		(ii)	“Trade Secrets” shall mean the Company’s and/or its Affiliates’ “trade secrets” as such term is defined in the Uniform Trade Secrets Act, as promulgated generally in the United States of America.

		b)	Non-Disclosure. Both during and after the employment, the Executive agrees to hold confidential all Confidential Information learned or acquired by the Executive and will take all action necessary to preserve that confidentiality. The Executive represents and covenants that the Executive shall treat any Confidential Information disclosed to, or learned by, the Executive as fiduciary agent of the Company, recognizing that the Company only made the Confidential Information accessible to the Executive by reason of the special trust and confidence which the Company placed in the Executive. The Executive shall not disclose, disseminate, transmit, publish, distribute, make available or otherwise convey any of the Company’s or any of its Affiliates’ Trade Secrets to any person except directors, officers and executives of the Company that in the Executive’s actual and reasonable knowledge are entitled and authorized to view such Trade Secrets and who need to know such Trade Secrets in order to conduct bona fide activities on behalf of the Company.

		(c)	Without the prior written approval of duly authorized representatives of the Company or any of its Affiliates, which the Company or any of its Affiliates may in their discretion withhold, the Executive agrees that, during the term of this Agreement or at any time thereafter, the Executive shall keep confidential and shall not directly or indirectly disclose, reveal, publish, exploit or otherwise make use of the Confidential Information in any manner whatsoever including, but not limited to, interviews, articles, accounts, books, plays, movies, and documentaries, whether non-fiction or fictional.

		(d)	Security Measures. While in possession or control of Confidential Information, or any media embodying same, the Executive shall take reasonable efforts to keep such Confidential Information reasonably inaccessible from persons not otherwise authorized to view the Confidential Information.

		(e)	Forced Disclosure. If the Executive is requested or required (by oral questions, interrogatories, requests for information or documents in legal proceedings, subpoena, civil investigative demand or other similar process) to disclose any of the Confidential Information, the Executive shall provide an officer of the 

	
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Company with prompt written notice of such request or requirement so that the Company may seek a protective order or other appropriate remedy and/or waive compliance with the provisions of this Agreement.

		(f)	Ownership. Notwithstanding any other provision of this Agreement, the Executive hereby acknowledges that the Company owns the exclusive right, title and interest in and to the Confidential Information and the intellectual property embodied in, relating to, based upon or arising from Confidential Information.

		(g)	Return of Materials. When the Executive’s employment with the Company ends, the Executive shall return to the Company all content, in whatever media, owned by the Company, including, without limitation, all Confidential Information, papers, drawings, notes, memoranda, manuals, specifications, designs, devices, code, e-mail, documents, diskettes, tapes and any other material. The Executive shall also return any keys, access cards, cell phones, computers, identification cards and other property and equipment belonging to the Company and/or its Affiliates. All data and information stored on or transmitted using the Company owned or leased equipment is the property of the Company.

	3.	Cooperation. At any time following the effective date of termination of this Agreement, the Executive shall reasonably cooperate with the Company in any litigation or administrative proceedings involving any matters with which the Executive was involved during Executive’s employment by the Company. The Company shall reimburse the Executive for reasonable costs, fees and expenses, if any, incurred in providing such assistance.

	
4.

	
Warranties.

		4.1	The Executive warrants and certifies that the Executive has fully read and understands the terms, nature and effect of this Agreement. In executing this Agreement, the Executive does not rely on any inducements, promises or representations by the Company or any person other than the terms and conditions of this Agreement.

		4.2	The Executive warrants and represents that the Executive does not know of any restriction or agreement to which the Executive is bound which arguably conflicts with the execution of this Agreement or the employment hereunder.

	5.	Controlled Substance and Alcohol Screening. Throughout the term of this Agreement, the Executive must abide by the Company’s controlled substance and alcohol policy as adopted from time to time. The Executive acknowledges and agrees that these policies may include requirements that the Executive submit to 

	
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testing for controlled substances or alcohol on the basis of reasonable suspicion in accordance with the Company’s controlled substance or alcohol policies.

		5.1	The Executive agrees that failure to consent or cooperate in testing for controlled substances or alcohol or positive results from such testing may be the subject of disciplinary action up to and including termination.

		5.2	The Executive agrees that testing for controlled substance or alcohol may include taking and testing of the Executive’s urine, blood or hair.

		5.3	The Executive shall hold the Company and its Affiliates and each of their respective officers, directors, employees, agents and shareholders harmless from any and all claims, demands or liability arising from testing for controlled substances or alcohol and from any disciplinary action resulting from such proposed or actual testing.

Acknowledged this _19th__ day of February, 2015.

		
By:

	
EXECUTIVE

	
	 		
	 		
		
/s/ George M. Markantonis

	
		
George M. Markantonis

	

 

	
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Exhibit C

DISPUTE RESOLUTION BY ARBITRATION

JURY TRIAL WAIVER. THE PARTIES EXPRESSLY AND KNOWINGLY WAIVE ANY RIGHT TO A JURY TRIAL IN THE EVENT ANY ACTION ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE EXECUTIVE’S EMPLOYMENT WITH THE COMPANY IS LITIGATED OR HEARD IN ANY COURT.

	
VCR:

	
(Initial)

	 	
Executive:

	
/s/ GM    (Initial)

	1.	Any controversy or claim arising out of or related to any provision of this Agreement other than Section 7 shall be settled by final, binding non-appealable arbitration in Las Vegas, Nevada. Subject to the following provisions, the arbitration shall be conducted in accordance with the Commercial Rules of the American Arbitration Association (the “AAA”) then in effect. The arbitration shall be conducted by a panel of three arbitrators. One of the arbitrators shall be appointed by the Company, one shall be appointed by the Executive and the third shall be appointed by the first two arbitrators. If the first two arbitrators cannot agree on the third arbitrator within thirty (30) days of the appointment of the second arbitrator, then the third arbitrator shall be selected from a list of seven arbitrators selected by the AAA, each of whom shall be experienced in the resolution of disputes under employment agreements for executive officers of major corporations. From the list of seven arbitrators selected by the AAA, one arbitrator shall be selected by each Party striking in turn with the Party to strike first being chosen by a coin toss. Any award entered by the arbitrators shall be final, binding and non-appealable and judgment may be entered thereon by either Party in accordance with applicable law in any court of competent jurisdiction. This arbitration provision shall be specifically enforceable. The arbitrators shall have no authority to modify any provision of this Agreement or to award a remedy for a dispute involving this Agreement other than a benefit specifically provided under or by virtue of the Agreement. The Company shall be responsible for all of the fees of the AAA and the arbitrators (if applicable).

	2.	If the Executive prevails on any material issue which is the subject of an arbitration or litigation, as applicable, the Company shall reimburse one hundred percent (100%) of the Executive’s reasonable legal fees and expenses. If the Company prevails on all issues, the Executive shalt reimburse one hundred percent (100%) of the Executive’s reasonable legal fees and expenses. Otherwise, each Party shall be responsible for its own expenses relating to the conduct of the 

	
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arbitration or litigation, as applicable (including reasonable attorneys’ fees and expenses).

 

	
3.

	
The arbitrators shall render an award and written opinion explaining the award.

	4.	The hearing and arbitration proceedings (as well as any resulting judicial proceedings seeking to enforce or vacate any arbitration award) shall be conducted in a confidential manner and both the conduct and the results of the arbitration shall be kept confidential by the Parties, their attorneys, consultants and agents. The arbitrators shall be advised of the confidentiality of the proceedings and any award and decision of the arbitrators shall be written in such a way as to protect the confidentiality of personal information or information made (or recognized as) confidential by this Agreement or recognized as confidential by any confidentiality agreement.

	5.	In the event of litigation to secure provisional relief, or to enforce, confirm or review an arbitration award under this Agreement, any such court action shall be brought under seal to the extent permitted by the court in order to maintain the confidentiality of the matter as well as the confidentiality of the arbitration, the decision and award, any personal information and the confidentiality of any information which any Party is required to keep confidential pursuant to this Agreement or any other agreement involving the Parties. Each Party to any such judicial action shall make every effort in any pleadings filed with the court and in Executive’s or its conduct of any court litigation to maintain the confidentiality of any personal information and any information which any Party is required to keep confidential pursuant to this Agreement or any other agreement involving the Parties. To this end, the court shall, inter alia, be informed of the confidentiality obligations of this Agreement and shall be requested that any decision, opinion or order issued by the court be written in such a manner as to protect the confidentiality of any information which is required to be kept confidential pursuant to this Agreement or any other agreement involving the Parties.

	6.	In the event of a dispute subject to this Section, the Parties shall be entitled to reasonable, but expedited discovery related to the claim that is the subject of the dispute, subject to the discretion of the arbitrators. Any discovery agreed upon or authorized by the arbitrators shall be concluded prior to the date set for the hearing. In the event of a conflict between the applicable rules of the AAA and the procedures set forth in this Section, the provisions of this Section shall govern.

Acknowledged this 19th day of February, 2015.

		
By:

	
EXECUTIVE

	
	 		
	 		
		
/s/ George M. Markantonis

	
		
George M. Markantonis

	

 

	
Executive Initials:

	/s/ GM 

 

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/s/ George M. Markantonis

		
George M. Markantonis

 

 

 

 

	
Executive Initials:

	/s/ GM 

 

 

 

 

24EXHIBIT 10.3

EXHIBIT 10.3

 

 

SEPARATION FROM EMPLOYMENT UPON RETIREMENT

Notice Regarding Last Day of Employment.

Through your letter of January 16, 2015 (Attachment D), it is understood that you have asked to terminate your Letter of Appointment for Executive and Supplemental Employment Terms Agreement issued on August 4, 2010 and Offer Amendment Letters issued on May 10, 2012 and May 1, 2013 (the “Agreement”) as of March 6, 2015 (the “Termination Date”).  In consideration of your substantial contributions during your tenure with the Company and the conditions set forth below and in the attached Separation & General Release Agreement (“Separation Agreement”), the benefits set forth herein will be provided by the Company:

		1.	You will not be required to maintain regular office hours as of the Termination Date.

		2.	You agree that you will provide best efforts in achieving an orderly transition of your responsibilities, to the Chairman of the Board of Sands China Limited (“SCL”) (or such senior executives of either VML or LVS as he may designate) and the SCL Board of Directors as may be necessary.

		3.	You acknowledge that you understand and agree that you are required to return, as of the Termination Date, all property of the Company in your possession, including without limitation, files, memoranda, records, contact lists, customer lists, computers, ipads, wireless devices and any other documents and physical items and items in electronic format.  Additionally, the Company will assist you in transferring personal contacts and calendar information to electronic devices necessary for you to perform the consultancy agreement attached hereto during the consultancy period, at the conclusion of which you will return those devices, contents and other Company property to the Company.

SEPARATION AGREEMENT AND GENERAL RELEASE

THIS SEPARATION AGREEMENT AND GENERAL RELEASE (“Separation Agreement”), effective as of the Effective Date (as defined below), is entered into by and between Edward M. Tracy (“Executive”) and Venetian Macau Limited, its subsidiaries, affiliated and related entities (whether domestic or foreign), including but not limited to its parent Sands China Ltd. (“SCL”) and SCL’s majority owner, Las Vegas Sands Corp. (“LVSC”), their respective employees, officers, and directors (collectively referred to as the “Company”) as well as their shareholders (each individually a “Party” and together, the “Parties”).

WHEREAS, the Parties desire at this time to enter into this Separation Agreement regarding Executive’s separation from employment with the Company, and desire to ensure the amicable parting and to settle any and all differences or claims that might otherwise arise.

NOW THEREFORE, in consideration of the recitals and the mutual promises, covenants and agreements set forth herein, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Parties covenant and agree as follows:

 

	
Employee initials

	
/s/ ET

 

 

 

	1.	Termination of Employment & Transition.  Effective upon signing of this Separation Agreement and continuing until Termination Date, Executive will maintain the title of CEO & President of VML provided, however, that Executive hereby resigns all of his positions as an officer and director of Sands China Ltd. and its affiliates as of the Termination Date and will devote his energies to licensing and project matters, as well as transitioning of his responsibilities under the direction of the Chairman of the Board of Sands China Ltd. (or such person as he may designate in writing) as well as such other significant matters so directed.

	
2.

	
Payments by the Company.

In consideration for entering into this Agreement, and subject to all other terms and conditions in this Agreement, the Company shall pay the Employee the following, subject to professional tax withholding or charges as applicable this amount calculated as follows:

		 	
ITEMS

	
AMOUNT BEFORE TAX 

(In USD to be paid in MOP)

	
PAYMENT DUE DATE

		
(i)

	
Regular Base Salaries:

6 March 2015

	
Subject to final PTO record to be updated by Human Resources

	
No later than

3 April 2015

		
(ii)

	
Annual leave remaining unused as of 6 March 2015

	
Subject to final PTO record to be updated by the Employee

	
No later than

3 April 2015

	
2.1.

	
Consideration/Payment in Full.

(a)            Consideration/Severance Benefits.  In return for Executive’s signing and not revoking this Agreement, complying with the requirement to return Company property set forth in the attached Notice Regarding Last Day of Employment, and complying with the promises made by Executive in this Agreement, the Company will provide Executive with the pay described above and other benefits (the “Severance Benefits”), as follows

		(i)	The Company will pay Employee US$1,500,000.00 subject to applicable tax withholding, along with any other appropriate payroll deductions on or before 3 April 2015;

		(ii)	In lieu of delivering a pro-rated number of restricted stock units that would otherwise be agreed based on the May 1, 2013 Award, the Company will pay the Executive an additional lump sum equal to the average price of 503,731 shares of SCL stock on March 6, 2015, subject to applicable payroll deductions, on or before 3 April 2015;  

		(iii)	The Company will payout to Executive 100% of his accrued Provident Fund as soon as possible;

		(iv)	The Company will pay Executive a bonus for 2014 on the same basis as like-situated executives as though he were still employed on the date of 

 

	
Employee initials

	
/s/ ET

2

 

such payment when (and if) such bonuses are paid no later than the end of the First Quarter 2015;

 

		(v)	Subject to the approval of the Company’s Remuneration Committee, you hereby agree that the RSU Grants provided for in the May 1, 2013 Supplement to your Employment Agreement, any options vested on or before the Termination Date and the Equity Agreements related thereto will be amended such that the Vesting Date set out in the Grant of Share Award (Restricted Stock Units) pursuant to your May 1, 2013 shall, subject to the approval of the Remuneration Committee, be amended as follows:

		·	503,731 shares shall lapse on 28 February 2015.

		·	496,269 shares shall vest on December 31, 2016 at the conclusion of the consultancy period in the attached Consultancy Agreement.

		(vi)	SCL Options granted and vested prior to the Termination Date will be governed according the Company’s equity plan/ be exercisable by you after the Termination Date during the consultancy period established through Attachment A but will expire 90 days after the end of the consultancy period or on the date on which the attached Consultancy Agreement is terminated, if earlier.

Unless agreed otherwise in writing, you shall continue to be subject to the Company’s trading ‘black out’ periods during the term of the attached Consultancy Agreement and are required to seek approval before trading in the Company’s shares. All other terms of the Option Grants remain unchanged and are subject in all respects to the terms of the respective Share Option Grants and the Company’s Equity Award Plan.

		(vii)	SCL will engage the Executive as a consultant for a period of 21 months and 25 days starting March 7, 2015 and ending December 31, 2016 pursuant to the attached Consultant’s Agreement.

		(viii)	In the event of Executive’s death prior to the time when all payments under this Section 2 have been made, Executive’s estate shall receive such payments not already paid to Executive in accordance with the provisions of this Section 2.

		(ix)	Repatriation: Company will pay for your repatriation to the United States including assistance with transportation of household pets (including special handling as needed for family dog).

		(x)	Business expenses submitted in accordance with Company policy will be reimbursed.

		(xi)	Health insurance through the Consultancy Agreement with eligibility for COBRA or COBRA equivalent coverage thereafter.

 

	
Employee initials

	
/s/ ET

3

 

 

		(xii)	Accommodation. The Company will, in accordance with your Employment Agreement, continue to provide accommodation for you until 3 April 2015 as needed.

	3.	No Severance Benefits Unless Executive Signs this Separation Agreement and General Release.  Executive understands and agrees that he will not receive any of the Severance Benefits specified in Section 2 above unless he signs and does not revoke this Separation Agreement and General Release within the time periods specified in Section 22 below and fulfills all of the promises contained herein.

 

	4.	General Release of Claims.

		(a)	In consideration for the benefits specified in this agreement, Employee  hereby understands and agrees that Employee is knowingly and voluntarily releasing, waiving and forever discharging (and Employee hereby does knowingly and voluntarily release, waive and forever discharge), to the fullest extent permitted by law, on Employee’s own behalf and on behalf of Employee’s agents, assignees, lawyers, heirs, executors, administrators and anyone else claiming by or through Employee (collectively referred to as the “Releasors”):

		(i)	the Company, its affiliates, subsidiaries, predecessors, successors or assigns, and any of its or their past or present stockholders, members or other equity holders, and any of its or their respective past or present directors, executives, officers, insurers, lawyers, employees, consultants, agents, employee benefits plans and trustees, fiduciaries, and administrators of those plans (collectively referred to as the “Released Parties”),

		(ii)	of and from any and all claims under Macau law or equity, whether known or unknown, asserted and unasserted, that Employee and/or the other Releasors have or may have against Released Parties as of the Effective Date (as defined below), including but not limited to all matters relating to or in any way arising out of any aspect of Employee’s employment with the Company, separation from employment with the Company, or Employee’s treatment by the Company while in the Company’s employ, and all other claims, charges, complaints, liens, demands, causes of action, obligations, damages (including consequential, punitive or exemplary damages), liabilities or the like of whatever nature (including, without limitation, lawyers’ fees and costs) (collectively “Claims”), including but not limited to all Claims for:

(A)          salary and other compensation or benefits, including, but not limited to, overtime if applicable, incentive compensation and other bonuses, severance pay, paid time off or any benefits in accordance with Macau Law;

(B)          breach of implied or express contract (whether written or oral), 

	
Employee initials

	
/s/ ET

4

 

 

breach of promise, misrepresentation, fraud, estoppel, waiver or breach of any covenant of good faith and fair dealing, including without limitation breach of any express or implied covenants of any employment agreement that may be applicable to Employee;

(C)          defamation, negligence, infliction of emotional distress, violation of public policy, wrongful or constructive discharge, or any employment-related tort recognized under any Macau law;

(D)          costs, fees, or other expenses, including lawyers’ fees; and

(E)          any other claim, charge, complaint, lien, demand, cause of action, obligation, damages, liabilities or the like of any kind whatsoever, including, without limitation, any claim that this Agreement was induced or resulted from any fraud or misrepresentation by Company.

Excluded from the release set forth in this Section 4(a) are: (i) any Claims or rights to enforce this Agreement against the Company; (ii) any Claims that may arise after the Effective Date; and (iii) any Claims that Employee cannot lawfully release.

		(b)	The Released Parties, for good consideration which they hereby acknowledge receiving, hereby release Employee from any and all claims, demands, causes of action, liability or the like which they had, now have or may claim to have against Employee, as of the Effective Date, whether known or unknown (it being understood and agreed that excluded from the release set forth in this Section 4(b) are (i) any claims or rights to enforce this Agreement against Employee, (ii) any claims that may arise after the Effective Date and (iii) any claims that the Released Parties cannot lawfully release).

	
5.

	
Additional Agreements by Executive.

(a)            BY AGREEING TO THE RELEASE CONTAINED IN THIS AGREEMENT EXECUTIVE HEREBY KNOWINGLY AND VOLUNTARILY WAIVES ANY RIGHTS (KNOWN OR UNKNOWN) TO BRING OR PROSECUTE A LAWSUIT OR MAKE ANY LEGAL CLAIM AGAINST THE RELEASED PARTIES WITH RESPECT TO ANY OF THE CLAIMS DESCRIBED IN SECTION 4 HEREOF.  Executive agrees that the release set forth herein will bar all claims or demands of every kind, known or unknown, referred in Section 4 hereof and further agrees that no non-governmental person, organization or other entity acting on Executive’s behalf has in the past or will in the future file any lawsuit, arbitration or proceeding asserting any claim that is waived or released under this Agreement. If Executive initiates, files or pursues a lawsuit, arbitration or other proceeding asserting any Claim waived or released in this Agreement, (i) Executive will pay for all costs, including reasonable attorneys’ fees, incurred by the Released Parties in defending against such Claim; (ii) Executive gives up any right to individual damages in connection with any administrative, arbitration or court proceeding with respect to Executive’s employment with and/or separation from the Company; and (iii) if Executive is awarded money damages, Executive will assign to the Released Parties Executive’s right and interest to all such money damages.

	
Employee initials

	
/s/ ET

5

 

 

(b)            Executive agrees that Executive shall not solicit, encourage, assist or participate (directly or indirectly) in bringing any Claims or actions against any of the Released Parties by other current or former employees, officers or third parties, except as compelled by subpoena or other court order or legal process, and only after providing the Company with prior notice of any such subpoena, order or legal process and an opportunity to timely contest such process.

(c)            Executive represents, warrants and agrees that Executive has not filed any administrative, judicial or other form of complaint or initiated any claim, charge, complaint, suit or legal or other proceeding against any of the Released Parties, and that Executive will not make such a filing at any time hereafter based on any events, actions or omissions occurring prior to the Effective Date.  Executive understands and agrees that this Agreement will be pleaded as a full and complete defense to any such claim, charge, complaint, suit or proceeding which is or may be instituted, prosecuted or maintained by Executive, Executive’s agents, assignees, attorneys, heirs, executors, administrators and anyone else claiming by or through Executive.

	
6.

	
Affirmations.  In signing this Agreement, Executive hereby affirms that:

(a)            Subject to payment as set forth in the Notice Regarding Last Day of Employment, Executive has have been paid and/or has received all compensation, wages, bonuses, commissions, overtime and/or benefits to which Executive may be entitled (except as set forth in this Agreement), and that no other amounts and/or benefits are due to Executive except as specifically provided in this Agreement;

(b)            Executive is not eligible to receive payments or benefits under any other Company and/or other Released Party’s severance pay policy, plan, practice or arrangement;

(c)            Executive has no known workplace injuries or occupational diseases that Executive has not reported to the Company;

(d)            Executive has not complained of and Executive is not aware of any fraudulent activity or any act(s) which would form the basis of a claim of fraudulent or illegal activity by the Company or any other Released Party that Executive has not reported to the Company.  Executive also affirms that Executive has not been retaliated against for reporting any allegations of wrongdoing by any Released Party, including any allegations of corporate fraud.  Both Parties acknowledge that this Agreement does not limit either Party’s right, where applicable, to file or to participate in an investigative proceeding of any Macau governmental agency.  To the extent permitted by law, Executive agrees that if such an administrative claim is made, Executive shall not be entitled to recover any individual monetary relief or other individual remedies;

(e)            Executive acknowledges and agrees that if Executive breaches the provisions of this Agreement, the Company will have the right to seek any appropriate legal and/or equitable remedies as a result of Executive’s breach, which may include, but may not be limited to, injunctive relief, the return of any payments, reimbursements or benefits Executive has received under any provision of this Agreement, other monetary damages, and the payment of the Company’s attorneys’ fees.

 

	
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	7.	Cooperation.

(a)            Executive agrees that Executive will cooperate with the Company, its subsidiaries and its affiliates with respect to matters or issues which took place or arose during Executive’s tenure with the Company, specifically including without limitation any attorney retained by any of them or any other representative acting on their behalf, in connection with any pending or future internal investigation or judicial, administrative or regulatory matter, proceeding or investigation.  The Parties acknowledge and agree that such cooperation may include, but shall not be limited to, Executive making himself reasonably available for meetings, interviews, statements, testimony or the signing of affidavits, and providing to the Company any documents or information in Executive’s possession or under Executive’s control relating to any such litigation, regulatory matter or investigation, provided that any such meeting, interviews, statements or testimony do not unduly interfere with Executive’s work schedule or other post-Company duties.  The Company shall reimburse Executive for reasonable and documented expenses, including but not limited to attorneys' fees and out of pocket travel expenses, in connection with Executive’s performance under this Section 7, subject to the Company’s policies on business expense reimbursement including, without limitation, the receipt of supporting documentation by the Company; provided, however, that Executive shall not be entitled to any payment or reimbursement for a reasonable amount of his own time spent testifying or otherwise cooperating in any matter in which Executive is a defendant or witness in a court or administrative proceeding or a named subject or target of the litigation, regulatory matter or investigation.

(b)            Executive represents and warrants that Executive has and will accurately, completely and truthfully disclose to the Company any and all materials and information requested, including without limitation in connection with any pending or future internal investigation or judicial, administrative or regulatory matter, proceeding or investigation involving conduct in which Executive was involved or had knowledge in connection with Executive’s employment with the Company.  In the event of a material breach of this Section 7, Executive agrees that the Company may terminate this Agreement and render it null and void as of the Termination Date or any time thereafter, and that in such event, Executive shall be required to reimburse the Company in full any payments, reimbursements or benefits Executive has received under any provision of this Agreement.

(c)            Executive agrees that from and after the Termination Date, as reasonably requested by the Company, Executive shall provide assistance and support in connection with the transition of Executive’s duties and responsibilities to others.  Executive also agrees to cooperate with the Company and take all reasonable steps necessary to effectuate this Agreement, each of its terms and the intent of the Parties.

(d)            Pursuant to the Bylaws and Company policy, the Company agrees to indemnify and hold Executive harmless for any liability that may accrue to Executive as a result of any work he performed in good faith within the scope of his duties for the Company to the extent permitted by law.  The Company agrees to provide Executive with legal representation, at the Company’s expense and by an attorney of the Company’s choice, in the event Executive is required to testify, whether orally or in writing, on matters relating to his employment at the Company.

 

	
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	8.	Confidentiality of This Agreement.

(a)            Until such time, if required by law, it is filed as an Exhibit to a public filing by the Company, the Parties agree that it is a material condition of this Agreement that Executive shall keep the terms of this Agreement strictly and completely confidential. Executive shall not communicate with the press, media, analysts, investors in the Company or employees of the Company or its subsidiaries or affiliates with respect to the business of the Company and Executive’s employment with (and departure from) the Company, including but not limited to communications with respect to the terms, conditions and circumstances of this Agreement and Executive’s departure from the Company, except as may be required by law or to refute false statements about Executive.

	9.	Confidentiality/Non-Disclosure.  Executive agrees to make no disclosure or use of any proprietary or confidential information, including without limitation, data, developments, customer information or trade secrets belonging to the Company or learned or acquired by Executive and will take all action necessary to preserve that confidentiality.  Executive shall continue to comply with any confidentiality agreements, provisions and policies by which Executive has previously agreed to abide.  For purposes of emphasis and as a reminder, portions of this Agreement set forth obligations already imposed on Executive by the Employment Agreement entered into on as of October 26, 2010 and on file with the Company, including, but not limited to, obligations related to nondisclosure. The provisions of this Section do not supersede the Confidentiality Agreement or any other written agreement Executive may have with the Company.

	10.	Public Statements/Mutual Non-disparagement.

(a)            Executive shall neither cause to be made or offered, nor make or offer any slanderous, denigrating, disparaging or malicious comments, remarks, statements or opinions regarding Sheldon G. Adelson, the Company, its subsidiaries or affiliates, or any of their respective predecessors or successors, or any individuals or entities that to Executive’s knowledge are current or former directors, officers, employees, shareholders, partners, members, agents or representatives of any of the foregoing, in their capacities as such, with respect to any of their respective past or present activities, or otherwise publish (whether in writing or orally) statements that tend to portray any of the aforementioned parties in an unfavorable light; provided, that nothing herein shall or shall be deemed to prevent or impair Executive from testifying truthfully in any legal or administrative proceeding if such testimony is compelled or requested or otherwise complying with any subpoenas or other judicial or governmental requests for information.

(b)            The Senior Management of the Company, which for the purposes of this Agreement shall consist of the President of SCL, President and Chief Operating Officer, the General Counsel, President, Global Gaming, Executive Vice President, Operations, the Senior Vice President, Human Resources, Chief Financial Officer, and any successor General Counsel or Company Secretary shall neither cause to be made or offered, nor make or offer any slanderous, denigrating, disparaging or malicious comments, remarks, statements or opinions regarding Executive to the public provided that: (i) the Company 

 

	
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may comply with any subpoenas or other judicial or governmental requests for information; (ii) this prohibition shall not apply to any employee of the Company acting in an individual capacity outside the course and scope of his or her employment with the Company; and (iii) this prohibition shall not apply to any employee of the Company who offers a personal recommendation at Executive’s request.

	11.	Severability.  If any provision of this Agreement is held to be unenforceable, Executive understands and agrees that such unenforceability shall not affect any other provision hereof and that the remainder of the Agreement shall be enforceable.

	12.	No Admission.  The Parties hereto recognize that, by entering into this Agreement, the Company does not admit, and does specifically deny, any violation of any law, whether regulatory, common or statutory.  The Parties further recognize that any payment by the Company under this Agreement is not an admission of liability, but a compromise of any and all issues that have been or may be disputed between the Company and Executive in connection with Executive’s employment by the Company. This Agreement is made for the purpose of terminating any and all potential disputes between the Company and Executive and the amounts payable to Executive hereunder are in addition to anything of value to which he is already entitled.

	13.	Rights After Breach.  Executive agrees that, in the event Executive materially breaches any provision of this Agreement or otherwise engages in any other act or omission that has caused or may reasonably be expected to cause injury to the interest or business reputation of the Company, in addition to rights otherwise set forth in this Agreement: (a) the Company shall have the right to (i) offset or reduce or discontinue any payments, reimbursements or benefits he otherwise would be entitled to receive under the provisions of this Agreement; and (ii) demand repayment of or reimbursement for, and Executive shall immediately repay or reimburse the Company upon demand, any or all payments, reimbursements or benefits paid or provided to Executive under the provisions of this Agreement; and (b) the Released Parties shall be entitled to file counterclaims against Executive in the event of Executive’s breach of the covenant not to sue and may recover from Executive any repayment or reimbursement not made to the Company, as required by Section 13(a) hereof, as well as any and all other resulting actual or consequential damages, including reasonable attorneys’ fees and costs.

		14.	Notices.  Any and all notices required by this Agreement shall be either hand-delivered, by e-mail or mailed, via certified mail, return receipt requested or via nationally recognized commercial courier, addressed to:

 

		
TO THE COMPANY:

	 	 
		 	 	 
		 	 	 
		
Copy to:

	 	 
		 	 	 

 

	
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TO EXECUTIVE:

	
Edward M. Tracy

	 
		 	
Contact No.:

	 
		 	
Email:

	 

 

All notices hand-delivered, e-mailed or delivered via nationally recognized commercial courier shall be deemed delivered as of the date actually delivered to the addressee.  All notices mailed shall be deemed delivered as of three (3) business days after the date postmarked.  All notices faxed shall be deemed delivered on the date faxed if electronic confirmation of delivery is obtained and retained.

	15.	Binding Release.  This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors, heirs and assigns.

	16.	Assignment.  Neither the Company nor Executive shall have the right to assign this Agreement or its respective rights or interests hereunder without the prior written consent of the other Party.  Any purported assignment or transfer in violation of this Section 16 shall be null and void.

	17.	Counterparts.  This Agreement may be executed in several counterparts, each of which shall be considered an original, but which when taken together, shall constitute one agreement.

	18.	Amendment or Modification.  This Agreement may not be amended or modified except by a writing signed by all Parties hereto.

	19.	Governing Law and Enforcement.  The Company and the Employee hereby agree to the exclusive jurisdiction of the laws and courts of Macau (SAR) for any legal proceedings related to this Agreement.

The prevailing party in any dispute, controversy or claim arising out of or related to this Agreement shall be entitled to recover its reasonable costs and attorney fees.

	20.	Entire Agreement.  This Agreement constitutes the entire agreement and understanding of the Parties hereto with respect to the subject matter hereof and no representations, oral or written, are being relied upon by either Party in executing this Agreement other than the express representations of this Agreement.  This Agreement supersedes any prior understanding, agreement or undertakings between the Parties, subject to the provisions of Section 9 above.

	21.	Drafting.  This Agreement shall not be construed either for or against the Company or Executive, by reason of the Party drafting its provisions. Executive may accept this Agreement by delivering to Executive hereby acknowledges and confirms that Executive has read all pages of this Separation Agreement and General Release and hereby freely 

 

	
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and voluntarily assents to all the terms and conditions in this Agreement, and signs the same as Executive’s own free act with the full intent of accepting the benefits contemplated hereby in return for releasing the Released Parties (as defined above) from all Claims.

	Accepted and Agreed:          		Accepted and Agreed:	
	 				
	
Venetian Macau Limited

	 	
Edward M. Tracy

	 
	 	 	 	 	 
	 	 	 	 	 
	
By:

	
/s/ Robert G. Goldstein

	 	
/s/ Edward M. Tracy

	 
	
Name:

	
Robert Goldstein

	 	
Executive Signature

	 
	Title: 	
Member Board of Directors

	 	 	 
	 	
of Sands China Ltd.

	 	 	 
	 	 	 	 	 
	January
15, 2015	 	
January
15, 2015

	 
	Date of Signature	 	
Date of Signature

	 

 

 

 

	
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Attachment A

Consultancy Agreement

AGREEMENT FOR SERVICES

(“Agreement”)

- by and between -

Venetian Macau Limited

(“the Company”)

- and -

Edward M. Tracy (“Consultant”)

 

Effective Date: March 7, 2015

 

 

	
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 AGREEMENT FOR SERVICES

This is an AGREEMENT FOR SERVICES (“Agreement”) by and between VENETIAN MACAU LIMITED (“VML or the Company”) and Mr. Edward M. Tracy (the “Consultant”).

W I T N E S S E T H:

WHEREAS, the Company is a corporation duly organized and existing under the laws of the Macao Special Administrative Region of the People’s Republic of China (“Macao”), and maintains its registered address at Estrada da Baía de N. Senhora da Esperança, s/n, Executive Office, The Cotai StripTM, Taipa, Macao, and the Company is engaged in the business of developing, designing, constructing, equipping, staffing, owning and operating legalized casino(s) in Macao and, via a wholly owned subsidiary of the Company, operates a passenger ferry business between Hong Kong and Macao;

WHEREAS, the Consultant represents and warrants to the Company that he has the requisite knowledge, ability and experience to assist the Company with Legal projects issues.

NOW, THEREFORE, for and in consideration of the foregoing recitals and the mutual promises, representations, understandings, undertaking and agreements hereinafter set forth, the Company and the Consultant hereby covenant and agree as follows:

1.            CONSULTANT SCOPE OF WORK.  During the Term of this Agreement, the Company retains the Consultant to perform, and the Consultant agrees to perform on behalf of the Company, certain consulting and advisory services in relation to all aspects of the Company’s Legal projects and other related responsibilities that may be assigned by the Company’s President and Chief Executive Officer of Sands China Ltd., Vice President & Global General Counsel of Las Vegas Sands Corp and the Sands China Ltd. Board of Directors as may be necessary, subject to change at the Company’s sole discretion.

1.1  Duties of the Consultant.  Consultant shall:

		a)	Use Consultant’s reasonable commercial efforts, skills and abilities in the performance of the services set forth in Appendix A of this Consultancy Agreement and to promote the best interests of the Company;

		b)	Communicate on an as necessary basis with the Company Monitor for this Consultancy Agreement, Robert Goldstein or any other person(s) designated by him in writing with notice to the Consultant. The Company Monitor has the responsibility for managing Consultant’s performance; and

		c)	Submit all invoices to the Company in the name of Consultant for services rendered and expenses incurred by Consultant for the Company during the periods covered by such invoices, including accurate receipts for expenses

 

	
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		d)	Consultant shall not have the authority to bind the Company or its affiliates in contract or to extend business complimentaries at the Company’s facilities.

1.2  Representations and Warranties of the Parties

		a)	Representations and Warranties of Consultant

		b)	Consultant agrees to comply with all the representations as set forth in Appendix B.

		c)	Warranty of the Company:

The Company warrants that it does not desire and will not request any service or action by Consultant that would or might constitute a violation of any law, regulation, or administrative requirement of Macau and the United States.

1.3. Regardless any eventual visits to Macau, both parties agree that none of the Consultant ́s services will be performed in Macau.

1.4  If necessary and at the discretion of the VML Chief Executive Officer and Global General Counsel of LVS, the Company shall provide appropriate office accommodation in the Company’s Hong Kong office during the term of this Consultancy.

2.            COMPENSATION TO CONSULTANT. For and in complete consideration of the Consultant’s full and faithful observance of all of the Consultant’s duties under this Agreement, the Company shall pay to the Consultant, and the Consultant shall accept from the Company the professional fee of USD$250,000.00 per annum (paid monthly in MOP) per month.  The Company will withhold the relevant tax according to the Macao Tax Laws.

3.            TERM.  This Agreement shall be effective as of March 7, 2015 and shall continue in full force and effect until the Consultant’s Services are completed on December 31, 2016.

4.            INDEPENDENT CONSULTANT.  The Company and the Consultant hereby covenant and agree that the Consultant shall furnish the Consultant’s Services pursuant to this Agreement solely as an independent Consultant and not as an employee or agent of the Company; it is specifically agreed that the Consultant and the Company shall not be deemed to have a relationship other than as an independent Consultant. The Consultant shall have no power or authority to bind the Company to any contract or agreement.  All purchase orders and supply contracts shall be executed directly between the Company and the third party vendor.

5.            FCPA,
OFAC AND BUSINESS CONDUCT.

5.1            The Consultant hereby agrees to comply with all laws of Macao, the Hong Kong (SAR), the U.S. Foreign Corrupt Practices Act (“FCPA”), and the Nevada Gaming Control Regulations (“Nevada Regulations”) that are applicable to the Consultant in its performance of the Agreement and must, to the extent the Consultant is able to do so, assist and co-operate with VML in assuring compliance with all such laws.  The Consultant hereby agrees use all reasonable endeavors to ensure that it and its employees, agents or affiliates do not directly or indirectly take any actions which could expose VML to any adverse action by regulatory authorities.

 

	
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5.2            The Consultant confirms its understanding that VML is committed to conducting its business in accordance with high ethical standards and in compliance with all laws of Macao and the FCPA and Nevada Regulations.  The Consultant represents and warrants that it (including its officers, directors, employees, agents and any other third parties acting on its behalf) will not directly or indirectly through any third party or person (i) pay; (ii) offer; (iii) promise; or (iv) authorize payment, of any monies or anything of value to any “official” for the purpose of improperly inducing or rewarding favorable treatment or advantage in connection with this Agreement or with the Consultant’s relationship with the VML, or in any other manner inconsistent with the laws of Macao or the FCPA or Nevada Regulations.  For this purposes, “official” includes any official, agent, or employee, or the close relative of any official, agent, or employee, of: the government of Macao; or any department, agency, or any entity that is wholly owned or controlled by the government of Macao; or any international public organization; or any recognized political party in Macao; or any candidate for political office in Macao.

5.3            Given that Las Vegas Sands Corporation (“LVSC”), a parent Company of VML, is headquartered in the United States of America, hotels operating under the LVSC portfolio of brands are legally restricted from conducting business with any persons or entities that are designated on the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) List of Specially Designated Nationals and Other Blocked Persons (including terrorists and narcotics traffickers) (the “OFAC List”), since such hotels and LVSC could be determined to have derived income, directly or indirectly, from any such prohibited business activities. The OFAC List can be found by visiting http://www.treasury.gov/resource-center/sanctions/SDNList/Pages/default.aspx. The Consultant represents and warrants that it is currently not on the OFAC List, nor on any similar restricted party listings, including those maintained by other governments pursuant to applicable United Nations, regional or national trade or financial sanctions. If the Consultant is added to any such restricted party list during the term of the agreement, the Consultant undertakes to notify VML immediately and VML shall have the right to terminate this Agreement (and any other agreement with the Consultant) without any further delay upon receipt of the said notification from the Consultant.

6.            CONFIDENTIALITY AND OWNERSHIP OF WORKS.  The Consultant agrees that neither it nor any of its employees, either during or after this Agreement, shall disclose or communicate to any third party any information about the Company’s policies, prices, systems, methods of operation, contractual agreements or other proprietary matters concerning the Company’s business or affairs, except to the extent necessary in the ordinary course of performing the Consultant’s Services.  Upon termination of this Agreement for any reason, all papers and documents in the Consultant’s possession or under its control belonging to the Company, must be returned to the Company.

7.            ASSIGNMENT.  Neither this Agreement nor any rights or obligations hereunder may be assigned, delegated, or otherwise transferred by the Consultant in whole or in part without the prior written consent of the Company, which consent may be unreasonably withheld, nor shall this Agreement inure to the benefit of any trustee in bankruptcy, receiver, or other successor of the Consultant whether by operation of law or otherwise without such consent.  Any attempts so to assign, delegate, or transfer this Agreement or any rights or obligations hereunder without such consent shall be null and void and of no force and effect.

8.            WAIVER.  The Company’s failure to enforce or delay in enforcement of any 

 

	
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provision hereof or any right hereunder shall not be construed as a waiver of such provision or right.  The Company’s exercise of any right hereunder shall not preclude or prejudice the exercise thereafter of the same or any other right.

9.            SEVERABILITY.  If any term, provision, covenant, or condition of this Agreement, or any application thereof, should be held by a court of competent jurisdiction to be invalid, void, or unenforceable, all provisions, covenants and conditions of this Agreement, and all applications thereof, not held invalid, void, or unenforceable, shall continue in full force and effect and shall in no way be affected, impaired, or invalidated thereby.

10.            GOVERNING LAW & MISCELLANEOUS PROVISIONS.

(a)            This Agreement is the complete, entire, and exclusive statement of the contract terms between the parties.

(b)            This Agreement supersedes any prior understandings, agreements or undertakings between the parties except those referenced in the Separation Agreement to which this Agreement is appended.

(c)            This Agreement shall be governed by and interpreted in accordance with the laws of Macao.

(d)             Consultant and Company agree that final and binding arbitration shall be the exclusive forum for any dispute or controversy between them, including, without limitation, disputes arising under or in connection with this Agreement;

Disputes will be decided by three arbitrators, one to be appointed by each party and the third by the two so appointed. A party wishing to refer a dispute to arbitration shall appoint its arbitrator and send notice of such appointment to the other party requiring the other party to appoint its arbitrator within fourteen (14) days of that notice and stating that it will appoint its arbitrator as sole arbitrator unless the other party appoints its own arbitrator and give notice that it has done so within fourteen (14) days specified. If the other party does not appoint its own arbitrator and give notice that it has done so within fourteen (14) days specified, the party referring the dispute to arbitration may, without the requirement of any further prior notice to other party, appoint its arbitrator as sole arbitrator and shall advise the other party accordingly. Company and Consultant hereby agree that a judgment upon an award rendered by the arbitrators may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  The Company shall pay all costs uniquely attributable to arbitration, including the administrative fees and costs of the arbitrators.  Each Party shall pay its own costs and attorney fees, if any, unless the arbitrators rule otherwise.  Consultant understands that he is giving up no substantive rights, and this Agreement simply governs forum.  The prevailing party in any dispute, controversy or claim arising out of or related to this Agreement shall be entitled to recover its reasonable costs and attorney fees.

(e)              Each party warrants that it has full power and authority to execute and deliver this Agreement.

(f)              No modification of or addition or amendment to this Agreement shall be binding unless agreed to in writing and signed by both the parties.

(g)              The Consultant agrees to comply with all laws of Macao and the US.

(h)              The Consultant agrees that the restrictive covenant (non-competition) (Section 9.1) and non-solicitation (Section 9.2) provisions of his August 4, 2010 Employment Agreement will be in full force and effect being incorporated as part this Consultancy Agreement.

	
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IN WITNESS WHEREOF, the Company and the Consultant have caused this Agreement to be executed and delivered as of the date and year first above written.

	 	 		 	 	 
	 	 		
VENETIAN MACAU LIMITED

	 
	 	 		 	 	 
	 	 		 	 	 
	 	 		 	 	 
	
/s/ Robert G. Goldstein

		
By: 

	/s/ Edward M. Tracy	 
		 		
CONSULTANT – Edward M. Tracy

	 
	 	 		 	 	 
	 	 		 	 	 
	 	 		 	 	 
	 	 		 	 	 
	
DATED: 

	January 15, 2015		
January
15, 2015

	 

	
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Appendix A

		1.	Consultant shall provide professional advice and consultation in connection with the Company and its affiliated entities relating to affairs of the Company and its affiliated entities in Macau.

		2.	Consultant’s services will include conferring with his successor as General Counsel and Company Secretary, providing transition to auditors, assisting in transition of any law firm and regulatory relationships, and working with regulators as necessary as approved in writing by the Agreement Monitor.

		3.	Consultant shall not perform any activity undertaken to promote, advocate, influence or oppose some official action of the executive or legislative branch of any federal, state or local government (“Lobbying”).

		4.	Consultant does not have the authority to bind the Company or its affiliates in contract.

	
/s/ Edward M. Tracy

	
Edward M. Tracy

	 	
	
Date: 

	January
15, 2015

 

 

	
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Appendix B

(a)            Consultant warrants that in performing the duties required under this Agreement, Consultant will comply with the laws, regulations, and published administrative requirements of Macau (except to the extent inconsistent with, or penalized under, United States law), and to the best of his ability the United States, including but not limited to fair competition and anti-corruption laws, and shall take not take any action which would subject the Company to penalties under United States or Macau laws, regulations, and administrative requirements.

(b)            Consultant warrants that, in connection with the provisions of its services to the Company, Consultant has not and will not make any payments or gifts or any offers or promises of payments or gifts of any kind, directly or indirectly, to any employee or official of any  government or any agency or instrumentality thereof in Macau, including state-owned enterprises, or to any official of any political party, or to anyone acting on such employee or official’s behalf, in exchange for business or unfair advantage.

(c)            Consultant represents and warrants that: (i) neither Consultant nor any of Consultant’s employees or officers is an official or employee of the Macau government; an official of a political party, or a candidate for political office; or an officer, director, or employee, or an "affiliate" (as defined in regulations under the U.S. Securities Exchange Act of 1934) of a  customer or potential customer of the Company; and, (ii) as of the date of execution of this Consultancy Agreement and during the Term of this Consultancy Agreement, no Macau government official, and no official of any Macau government agency or instrumentality, is or will become associated with, or will own or presently owns an interest, whether direct or indirect, in Consultant, or has or will have any legal or beneficial interest in this Consultancy Agreement or the payments made by the Company hereunder.

(d)            Consultant warrants that Consultant is familiar with, and will comply in all respects with, Macau Law and to the extent that he has been advised U.S. laws, regulations, and administrative requirements applicable to the Company’s relationship with Consultant, including, but not limited to, the Foreign Corrupt Practices Act (FCPA), Export Administration Act, as amended, and the Anti-boycott Regulations and Guidelines issued under the Export Administration Act, as amended, and Section 999 of the Internal Revenue Code, as amended (Anti-boycott Regulations). The Company acknowledges that upon Consultant’s request it will furnish Consultant with copies of applicable U.S. laws and regulations.

(e) Consultant warrants that at all times Consultant will act in the best interests of the Company and will not take actions which are or may be detrimental to the Company in exposing the Company to legal risk.

(f)            Consultant represents and certifies that Consultant has not been convicted of or pleaded guilty or nolo contendere to an offense involving fraud, corruption, or moral turpitude, and that he is not now listed by any government agency as debarred, suspended, proposed for suspension or debarment.

(g)            Consultant hereby acknowledges receipt of a copy of the Company’s "Code of Business Conduct" and by execution of this Agreement, Consultant warrants and certifies that it fully understands the Company’s policy with respect to international sales transactions and relations 

 

	
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with customers and suppliers, and that Consultant will do nothing in the performance of the services required under this Agreement which will be in conflict with such Code of Business Conduct.

(h)            Consultant agrees to give written notice within twenty-four hours to the Company in the event that, at any time during the Term of this Consultancy Agreement, Consultant has or believes he may have failed to comply with, or has or believes it may have breached any of his warranties hereunder.

(i)            Consultant acknowledges the Company’s Code of Conduct and Anti-Corruption Policy and will adhere thereto.

	
/s/ Edward M. Tracy

	
Edward M. Tracy

	 	
	
Date: 

	January
15, 2015

	
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Schedule 1

FCPA Disclosure Statement

Edward M. Tracy, ("CONSULTANT") hereby certifies that he has paid, or offered or agreed to pay, or has caused to be paid, or offered or agreed to be paid directly or indirectly, in respect of this Consultancy Agreement the following political contributions, fees, and commissions:

I.  (State "none" if no political contributions, fees, or commissions have been paid, or offered or agreed to be paid or caused to be paid.) _____None    X     

If CONSULTANT has made any entry in space I. above, CONSULTANT shall furnish further information detailing such contributions, fees and or commissions in space II.

II.  (State "Not Applicable" if no entry has been made in space I.)_Not applicable

CONSULTANT further certifies that it has not and will not offer, pay, promise to pay, or

authorize the payment of any money, or offer, give, promise to give, or authorize the giving of anything of value to a Macau official, including employees and officials (appointed or elected) of any government, agency, instrumentality or state owned enterprise (as defined in the Foreign Corrupt Practices Act, as amended), to any Macau political party or official thereof or any candidate for Macau  political office, or to any person, while knowing or being aware of a high probability that all or a portion of such money or thing of value will be offered, given or promised, directly or indirectly, to any Macau official, to any Macau political party or official thereof, or to any candidate for Macau political office, for the purposes of:

(a) influencing any act or decision of such Macau official, political party, party official, or candidate in his or its official capacity, including a decision to fail to perform his or its official functions; or

(b) inducing such Macau official, political party, party official, or candidate to use his or its influence with the Macau government or instrumentality thereof to affect or influence any act or decision of such government or instrumentality, in order to assist the Company or CONSULTANT in obtaining or retaining business for or with, or directing business to the Company or CONSULTANT or to obtain an unfair advantage.

CONSULTANT further agrees that if subsequent developments cause the certifications and information reported hereinafter to be no longer accurate or complete,

CONSULTANT will immediately furnish the Company with a supplementary report detailing such change in circumstances.

 

	
/s/ Edward M. Tracy

	
Consultant

	 	
	
Date: 

	January
15, 2015

 

	
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Attachment D

	
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23

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