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Exhibit 10.23    
  

 
 

EMPLOYMENT AGREEMENT
  ("Agreement")
  
    -by and between-
  
    VALVINO LAMORE, LLC,
  ("Employer")
  
    -and-
  

 MATT MADDOX
  ("Employee")    
  

DATED: as of May 31, 2002  

EMPLOYMENT AGREEMENT  

        THIS EMPLOYMENT AGREEMENT ("Agreement") is made and entered into
as of the            day of May, 2002, by and between VALVINO LAMORE, LLC ("Employer") and
 MATT MADDOX ("Employee"). 

 
 

WITNESSETH:    
  

        WHEREAS, Employer is a limited liability company duly organized and existing under the laws of the State of
Nevada, maintains its principal place of business at 3145 Las Vegas Blvd. South, Las Vegas, Nevada, and is engaged in the business of developing, constructing and operating a casino/hotel complex at
such principal place of business; and, 

        WHEREAS, in furtherance of its business, Employer has need of qualified, experienced personnel; and, 

        WHEREAS, Employee is an adult individual residing at 10164 Birch Bluff Lane, Las Vegas, Nevada 89145; and, 

        WHEREAS, Employee has represented and warranted to Employer that Employee possesses sufficient qualifications and expertise in order to
fulfill the terms of the employment stated in this Agreement; and, 

        WHEREAS, Employer is willing to employ Employee, and Employee is desirous of accepting employment from Employer under the terms and
pursuant to the conditions set forth herein; 

        NOW, THEREFORE, for and in consideration of the foregoing recitals, and in consideration of the mutual covenants, agreements,
understandings, undertakings, representations, warranties and promises
hereinafter set forth, and intending to be legally bound thereby, Employer and Employee do hereby covenant and agree as follows: 

        1.    DEFINITIONS.    As used in this Agreement, the words and terms hereinafter defined have the respective meanings
ascribed to them herein, unless a different meaning clearly appears from the context: 

        (a)  "Affiliate"—means with respect to a specified Person, any other Person who or which is (i) a principal
of the specified Person, (ii) directly or indirectly controlling, controlled by or under common control with the specified Person, or (iii) any member, director, officer or manager of
the specified Person. For purposes of this definition, "control", "controlling", "controlled" mean the right to exercise, directly or indirectly, more than fifty percent of the voting power of the
stockholders, members or owners and, with respect to any individual, partnership, trust or other entity or association, the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of the controlled entity. 

        (b)  "Anniversary"—means each annual anniversary date of the Effective Date during the Term of this Agreement (as
defined in Section 6 hereof). 

        (c)  "Cause"—means 

        (i)    the
conviction of Employee of a felony by a court of competent jurisdiction; 

        (ii)  the
indictment of Employee by a state or federal grand jury of competent jurisdiction for embezzlement or misappropriation of Employer's funds or for any act of
dishonesty or lack of fidelity towards Employer; 

        (iii)  a
decree of a court of competent jurisdiction that Employee is not mentally competent or is unable to handle his/her own affairs; 

        (iv)  the
written confession by Employee of any act of dishonesty towards Employer or any embezzlement or misappropriation of Employer's funds; 

 

        (v)  the
payment (or, by the operation solely of the effect of a deductible, the failure of payment) by a surety or insurer of a claim under a fidelity bond issued to the
benefit of Employer reimbursing Employer for a loss due the wrongful act or wrongful omission to act of Employee (the occurrence of which shall cause Employee to be indebted to Employer for the LESSER
of either (A) the loss incurred by Employer or (B) the sums paid by Employer to Employee pursuant to this Agreement); 

        (vi)  Employee's
breach of the restrictive covenant set forth in Section 11 of this Agreement; 

        (vii) Employee's
failure to maintain in force and in good standing any and all licenses, permits and/or approvals required of Employee by the relevant governmental
authorities for the discharge of the obligations of Employee under this Agreement; or 

        (viii)Employer's
material violation of any statutory or common law duty of loyalty to Employer, any of its Affiliates or Wynn; 

provided, however, that Employee's disability due to illness or accident or any
other mental or physical incapacity shall not constitute "Cause" as defined herein. 

        (d)  "Complete Disability"—means the inability of Employee, due to illness or accident or other mental or physical
incapacity, to perform his/her obligations under this Agreement for a period as defined by Employer's local disability plan or plans. 

        (e)  "Effective Date"—means June 3, 2002. 

        (f)    "Prior Employment"—means any prior employment Employee has had with either Employer or Employer's Affiliate. 

        (g)  "Wynn"—means Stephen A. Wynn. 

        2.    PRIOR EMPLOYMENT.    This Agreement supersedes and replaces any and all prior employment agreements, change in
control agreements and severance plans or agreements, whether written or oral, by and between Employee, on the one side, and Employer or any of Employer's Affiliates, on the other side, or under which
Employee is a participant. From and after the Effective Date, Employee shall be the employee of Employer under the terms and pursuant to the conditions set forth in this Agreement. 

        3.    BASIC EMPLOYMENT AGREEMENT.    Subject to the terms and pursuant to the conditions hereinafter set forth,
Employer hereby employs Employee during the Term hereinafter specified to serve in a capacity, under a title, and with such duties not inconsistent with those set forth in Section 4 of this
Agreement, as the same may be modified and/or assigned to Employee by Employer from time to time; provided, however, that no change in Employee's duties shall be permitted if it would result in a
material reduction in the level of Employee's duties as in effect prior to the change, it being understood that no change in Employee's titles or reporting responsibilities shall in itself be a basis
for finding a material reduction in the level of duties. 

        4.    DUTIES OF EMPLOYEE.    Employee shall perform such duties assigned to Employee by Employer as are generally
associated with the duties of Vice President—Investor Relations & Treasurer for Employer or such similar duties as may be assigned to
Employee by Employer as Employer may determine, including, but not limited to (i) the efficient and continuous operation of Employer and Employer's Affiliates; (ii) the preparation of
relevant budgets and allocation or relevant funds; (iii) the selection and delegation of duties and responsibilities of subordinates; (iv) the direction, review and oversight of all
programs under Employee's supervision; and (v) such other and further duties specifically related to such duties as assigned by Employer to Employee. The foregoing notwithstanding, 

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Employee shall devote such time to Employer's Affiliates as may be required by Employer, provided such duties are not inconsistent with Employee's primary duties to Employer hereunder. 

        5.    ACCEPTANCE OF EMPLOYMENT.    Employee hereby unconditionally accepts the employment set forth hereunder, under
the terms and pursuant to the conditions set forth in this Agreement. Employee hereby covenants and agrees that, during the Term, Employee will devote the whole of Employee's normal and customary
working time and best efforts solely to the performance of Employee's duties under this Agreement and that, except upon Employer's prior express written authorization to that effect, Employee shall
not perform any services for any casino, hotel/casino or other similar gaming or gambling operation not owned by Employer or any of Employer's Affiliates. 

        6.    TERM.    Unless sooner terminated as provided in this Agreement, the term of this Agreement (the
"Term") shall consist of four (4) years commencing as of the Effective Date of this Agreement and terminating on the fourth Anniversary of the
Effective Date. 

        7.    SPECIAL TERMINATION PROVISIONS.    Notwithstanding the provisions of Section 6 of this Agreement, this
Agreement shall terminate upon the occurrence of any of the following events: 

        (a)  the
death of Employee; 

        (b)  the
giving of written notice from Employer to Employee of the termination of this Agreement upon the Complete Disability of Employee; 

        (c)  the
giving of written notice by Employer to Employee of the termination of this Agreement upon the discharge of Employee for Cause; 

        (d)  the
giving of written notice by Employer to Employee of the termination of this Agreement following a disapproval of this Agreement or the denial, suspension, limitation
or revocation of Employee's License (as defined in Section 9(b) of this Agreement); 

        (e)  the
giving of written notice by Employee to Employer upon a material breach of this Agreement by Employer, which material breach remains uncured for a period of thirty
(30) days after the giving of such notice; or 

        (f)    the
giving of written notice by Employee to Employer of termination of this Agreement without cause. 

In
the event of a termination of this Agreement pursuant to the provisions of Subsection 7(a), (b), (c), (d), or (f), Employer shall not be required to make any payments to Employee other than payment
of Base Salary and vacation pay accrued but unpaid and expenses incurred but not reimbursed through the termination date; specifically, in such event, Employee shall not be entitled to any benefits
pursuant to any severance plan in effect by Employer or any of Employer's Affiliates. In addition, in the event of a termination of this Agreement pursuant to Subsection 7(f), the provisions of
Subsection 11(a) shall continue to apply for the Term and the provisions of Subsection 11(b) shall continue to apply for one (1) year following the expiration of the Term. 

        8.    COMPENSATION TO EMPLOYEE.    For and in complete consideration of Employee's full and faithful performance of
Employee's duties under this Agreement, Employer hereby covenants and
agrees to pay to Employee, and Employee hereby covenants and agrees to accept from Employer, the following items of compensation: 

        (a)  BASE SALARY.    Employer hereby covenants and agrees to pay to Employee, and Employee hereby covenants and
agrees to accept from Employer, a base salary at the rate of Two Hundred Thousand Dollars ($200,000.00) per annum during the Term, payable in such installments as shall be convenient to Employer (the
"Base Salary"). Such Base Salary shall be exclusive of and in addition to any other benefits which Employer, in its sole discretion, may make available
to Employee, including, but not limited to, any discretionary bonus, stock option plan, profit sharing 

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plan, pension plan, retirement plan, disability or life insurance plan, medical and/or hospitalization plan, or any and all other benefit plan which may be in effect during the Term. Such Base Salary
shall be subject to merit reviews on each Anniversary Date and may be increased, but not decreased, as a result of such merit review(s). 

        (b)  BONUS COMPENSATION.    Employee also will be eligible to receive a bonus at such times and in such amounts as
Employer, in its sole, exclusive and unreviewable discretion, may determine, but in no event shall Employee's annual bonus be less than Fifty Thousand Dollars ($50,000.00) during any full calendar
year of the Term of this Agreement. The goals, if any, that Employee must meet or exceed in order to become eligible for bonus compensation shall be determined by Employer in Employer's sole
discretion, and disclosed to Employee before or at the commencement of the period for which such goals may apply. 

        (c)  EMPLOYEE BENEFIT PLANS.    Employer hereby covenants and agrees that it shall include Employee, if otherwise
eligible, in any stock option plan, profit sharing plan, pension plan, retirement plan, disability or life insurance plan, medical and/or hospitalization plan, and any and all other benefit plan which
may be placed in effect by Employer or any of its Affiliates for the benefit of Employer's employees during the Term. Unless prohibited by law or the terms of the applicable plan, Employee's
eligibility for medical and/or hospitalization benefits shall commence on the Effective Date of this Agreement. Nothing in this Agreement shall limit Employer's or its Affiliates' ability to adopt,
amend or terminate any such benefit plan at any time. 

        (d)  EXPENSE REIMBURSEMENT.    During the Term and provided the same are authorized in advance by Employer, Employer
shall either pay directly or reimburse Employee for Employee's reasonable expenses incurred for the benefit of Employer in accordance with Employer's general policy regarding reimbursement, as the
same may be amended, modified or changed from time to time. Prior to such payment or reimbursement, Employee shall provide Employer with sufficient detailed invoices of such expenses in accordance
with the then applicable guidelines of the Internal Revenue Service so as to entitle Employer to a deduction for such expenses. 

        (e)  VACATIONS AND HOLIDAYS.    Commencing as of the Effective Date of this Agreement, Employee shall be entitled to
(i) annual paid vacation leave in accordance with Employer's standard policy
therefor to be taken at such times as selected by Employee and approved by Employer, but in no event less than two (2) weeks during any year of the Term, and (ii) paid holidays (or, at
Employer's option, an equivalent number of paid days off) in accordance with Employer's standard policy therefor. 

        9.    LICENSING REQUIREMENTS.

        (a)  Employer
and Employee hereby covenant and agree that this Agreement may be subject to the approval of one or more gaming regulatory authorities (the
"Authorities") pursuant to the provisions of the relevant gaming regulatory statutes (the "Gaming Acts")
and the regulations promulgated thereunder (the "Gaming Regulations"). Employer and Employee hereby covenant and agree to use their best efforts to
obtain any and all approvals required by the Gaming Acts and/or Gaming Regulations. In the event that (i) an approval of this Agreement by the Authorities is required for Employee to carry out
his duties and responsibilities set forth in Section 4 of this Agreement, (ii) Employer and Employee have used their best efforts to obtain such approval, and (iii) this Agreement
is not so approved by the Authorities, then this Agreement shall immediately terminate and shall be null and void. 

        (b)  If
applicable, Employer and Employee hereby covenant and agree that, in order for Employee to discharge the duties required under this Agreement, Employee may be
required to apply for or hold a license, registration, permit or other approval (the "License") as issued by the Authorities pursuant to the terms of
the relevant Gaming Act and as otherwise required by this Agreement. In the event Employee fails to apply for and secure, or the Authorities refuse to issue 

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or renew Employee's License, Employee, at Employer's sole cost and expense, shall promptly defend such action and shall take such reasonable steps as may be required to either remove the objections
or secure the Authorities' approval, respectively. The foregoing notwithstanding, if the source of the objections or the Authorities' refusal to renew Employee's License arise as a result of any of
the events described in Subsection 1(c) of this Agreement, then Employer's obligations under this Section 9 shall not be operative and Employee shall promptly reimburse Employer upon demand for
any expenses incurred by Employer pursuant to this Section 9. 

        (c)  Employer
and Employee hereby covenant and agree that the provisions of this Section 9 shall apply in the event Employee's duties require that Employee also be
licensed by governmental agencies other than the Authorities. 

        10.  CONFIDENTIALITY. Employee hereby warrants, covenants and agrees that, without the prior express written approval of
Employer, Employee shall hold in the strictest confidence, and shall not disclose to any person, firm, corporation or other entity, any and all of Employer's confidential data, including but not
limited to (a) information, drawings, sketches, plans or other documents concerning Employer's business or development plans, customers or suppliers or those of Employer's Affiliates;
(b) Employer's or its Affiliates' development, design, construction or sales and marketing methods or techniques; or (c) Employer's trade secrets and other "know-how" or
information not of a public nature, regardless of how such information came to the custody of Employee. For purposes of this Agreement,
such confidential information shall include, but not be limited to, information, including a formula, pattern, compilation, program, device, method, technique or process, that (x) derives
independent economic value, present or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its
disclosure or use, and (y) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. The warranty, covenant and agreement set forth in this
Section 10 shall not expire, shall survive this Agreement, and shall be binding upon Employee without regard to the passage of time or other events. 

        11.  RESTRICTIVE COVENANT/NO SOLICITATION.

        (a)  Employee
hereby covenants and agrees that, during the Term or for such longer period so long as Employer pays to Employee the compensation set forth in Subsection 8(a)
of this Agreement, Employee shall not directly or indirectly, either as a principal, agent, employee, employer, consultant, partner, member of a limited liability company, shareholder of a closely
held corporation, or shareholder in excess of two (2%) per cent of a publicly traded corporation, corporate officer or director, manager, or in any other individual or representative capacity, engage
or otherwise participate in any manner or fashion in any business that is in competition in any manner whatsoever with the principal business activity of Employer or Employer's Affiliates, in or about
any market in which Employer or Employer's Affiliates have or have publicly announced a plan for hotel or gaming operations. Employee hereby further covenants and agrees that the restrictive covenant
contained in this Section 11 is reasonable as to duration, terms and geographical area and that the same protects the legitimate interests of Employer, imposes no undue hardship on Employee,
and is not injurious to the public. 

        (b)  Employee
hereby further covenants and agrees that, during the Term and for a period of one (1) year following the expiration of the Term, Employee shall not
directly or indirectly, and Employee shall not suffer others to, solicit or attempt to solicit for employment any management level employee of Employer or Employer's Affiliates with or on behalf of
any business that is in competition in any manner whatsoever with the principal business activity of Employer or Employer's Affiliates, in or about any market in which Employer or Employer's
Affiliates have or plan hotel or gaming operations. 

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        12.  BEST EVIDENCE.    This Agreement shall be executed in original and "Xerox" or photostatic copies and each copy
bearing original signatures in ink shall be deemed an original. 

        13.  SUCCESSION.    This Agreement shall be binding upon and inure to the benefit of Employer and Employee and their
respective successors and assigns. 

        14.  ASSIGNMENT.    Employee shall not assign this Agreement nor delegate his duties hereunder without the express
written prior consent of Employer thereto. Any purported assignment by Employee in
violation of this Section 14 shall be null and void and of no force or effect. Employer shall have the right to assign this Agreement freely. 

        15.  AMENDMENT OR MODIFICATION.    This Agreement may not be amended, modified, changed or altered except by a
writing signed by both Employer and Employee. 

        16.  GOVERNING LAW.    This Agreement shall be governed by and construed in accordance with the laws of the
jurisdiction where Employer's principal place of business is located in effect on the Effective Date of this Agreement, without regard to conflicts of law principles. 

        17.  NOTICES.    Any and all notices required under this Agreement shall be in writing and shall be either
hand-delivered or mailed, certified mail, return receipt requested, addressed to: 

	TO EMPLOYER:	 	Valvino Lamore, LLC

3145 Las Vegas Boulevard South

Las Vegas, Nevada 89109

Attn: Human Resources
	

WITH A COPY

THAT SHALL NOT BE

NOTICE TO:	
 	

Wynn Resorts, LLC

3145 Las Vegas Boulevard South

Las Vegas, Nevada 89109

Attn: Legal Department
	

TO EMPLOYEE:	
 	

Matt Maddox

10164 Birch Bluff Lane

Las Vegas, NV 89145

All
notices hand-delivered shall be deemed delivered as of the date actually delivered. All notices mailed shall be deemed delivered as of three (3) business days after the date
postmarked. Any changes in any of the addresses listed herein shall be made by notice as provided in this Section 17. 

        18.  INTERPRETATION.    The preamble recitals to this Agreement are incorporated into and made a part of this
Agreement; titles of sections are for convenience only and are not to be considered a part of this Agreement. 

        19.  SEVERABILITY.    In the event any one or more provisions of this Agreement is declared judicially void or
otherwise unenforceable, the remainder of this Agreement shall survive and such provision(s) shall be deemed modified or amended so as to fulfill the intent of the parties hereto. 

        20.  DISPUTE RESOLUTION.    Except for equitable actions seeking to enforce the provisions of Sections 10 and 11 of
this Agreement, jurisdiction and venue for which is hereby granted to the court of general trial jurisdiction in the state and county where Employer's principal place of business is located, any and
all claims, disputes, or controversies arising between the parties hereto regarding any of the terms of this Agreement or the breach thereof, on the written demand of either of the parties hereto,
shall be submitted to and be determined by final and binding arbitration held in the state and county where Employer's principal place is located, in accordance with Employer's or Employer's
Affiliates' arbitration policy governing employment disputes. This agreement to arbitrate shall be specifically enforceable in any court of competent jurisdiction. 

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        21.  WAIVER.    None of the terms of this Agreement, including this Section 21, or any term, right or remedy
hereunder shall be deemed waived unless such waiver is in writing and signed by the party to be charged therewith and in no event by reason of any failure to assert or delay in asserting any such
term, right or remedy or similar term, right or remedy hereunder. 

        22.  PAROL.    This Agreement constitutes the entire agreement between Employer and Employee with respect to the
subject matter hereto and this Agreement supersedes any prior understandings, agreements, undertakings or severance policies or plans by and between Employer or Employer's Affiliates, on the one side,
and Employee, on the other side, with respect to the subject matter hereof or Employee's employment with Employer or Employer's Affiliates. 

        IN WITNESS WHEREOF AND INTENDING TO BE LEGALLY BOUND THEREBY, the parties hereto have executed and delivered this Agreement as of the year
and date first above written. 

	 
	 	 
	 	 

	VALVINO LAMORE, LLC	 	EMPLOYEE
	

By:	
 	

/s/  MARC SCHORR      
	
 	

/s/  MATT MADDOX      
 Matt Maddox

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Exhibit 10.23

EMPLOYMENT AGREEMENT ("Agreement") -by and between- VALVINO LAMORE, LLC, ("Employer") -and- MATT MADDOX ("Employee")

WITNESSETHQuickLinks
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Exhibit 10.24    
  

 
 
  CONCESSION CONTRACT FOR THE OPERATION
  OF GAMES OF CHANCE OR OTHER GAMES IN CASINOS
  IN THE MACAU SPECIAL ADMINISTRATIVE REGION    
  

        On the 24th of June of the year 2002 in Macau and at the Seat of the Government of the Macau Special Administrative Region, at Avenida da Praia Grande, before me,
Chu Iek Chong, licensed, 2nd class technician of the Juridical Advisory Nucleus of the Finance Services Bureau, as alternate private notary of this Bureau in the absence of the head of
this office, having been appointed by Dispatch number 216/2000 of the Head of the Executive, of 8 November, before me appeared as Parties: 

        FIRST PARTY:    The Macau Special Administrative Region,  represented by the Chief Executive, Ho Hau Wah, married, with professional address in Macau, at the Government House of the Macau Special Administrative Region, located at
Avenida da Praia Grande, with the capacity and powers conferred for the present act by Article 45 of the Basic Law of the Macau Special Administrative Region. 

        SECOND PARTY:    Wynn Resorts (Macau), S.A. with head
office in Macau, at Avenida da Amizade, number 918, "World Trade Centre" building, 8th floor "C", registered at the Commercial and Automobile Central Registry Office under the number
14917, represented in this present act by its director Stephen Alan Wynn, married and residing at One Shadow Creek Drive, Las Vegas North, State of Nevada, United States of America, the capacity and
powers of whom I have verified by certificate issued by the above mentioned Central Registry Office, which I have filed. 

        I
verified the identity of the Parties by Passport No. 055142925, issued on 20th of January of 1998, by the San Francisco Passport Agency of United States of
America. And for the first party, with the indicated capacity and powers, the following was stated: 

        A
public tender was opened by Dispatch number 217/2001 of the Chief Executive, for the granting of 3 (three) concessions for the operation of games of chance or other games in casinos; 

        The
public tender for the granting of 3 concessions for the operation of games of chance or other games in casinos had, as a first stage, the opening of the proposals for awarding, that
was divided into two phases—the opening of the outward wrappings which were marked on the exterior with the indication "Documentos" and the opening of the outward wrappings which were
marked on the exterior the indication "Propostas", which was followed by a phase of consultations for the presentation and analysis of the proposals for awarding, and ended with the preparation of a
Documented Report, based on which the Chief Executive provisionally awarded the concessions for the operation of games of chance in casinos which were put up for tender; 

        "Wynn
Resorts (Macau), S.A." hereinafter designated as the concessionaire, was provisionally awarded by Dispatch number 26/2002 of the Chief Executive, one of the concessions for the
operation of games of chance or other games in casinos, that were the subject of the tender; 

        The
concessionaire deposited a bank guarantee to guarantee the fulfilment of its legal or contractual obligations, as per article 84, number 1, of Administrative Rule number
26/2001. 

        Evidence
was produced by the concessionaire to the Commission of the first public tender for the granting of concessions for the operation of games of chance in casinos that its capital
stock, amounting to not less than MOP 200,000,000.00 (two hundred million patacas), is totally paid up in money and deposited in a local credit institution or in a branch or subsidiary of a credit
institution authorized to operate in the Macau Special Administrative Region, under the terms of article 82, number 5, of Administrative Rule number 26/2001; 

        The
minutes of the present concession contract for the operation of games of chance or other games in casinos in the Macau Special Administrative Region was approved by the
concessionaire; 

        The
concessionaire, the shareholders holding 5% or more of its capital stock and its directors have been submitted to a suitability verification process, which led to the preparation of
a report stating their suitability; 

 

        The
concessionaire was submitted to verification process of its financial capacity to undertake a concession for the operation of games of chance or other games in casinos, which led to
the preparation of a report stating that it has an adequate financial capacity; 

        By
Dispatch number 142/2002 of the Chief Executive, "Wynn Resorts (Macau), S.A." was awarded one of the concessions for the operation of games of chance or other games in casinos that
were the subject of tender. 

        And
both Parties in their respective capacities said that the present administrative concession contract for the operation of games of chance or other games in casinos is mutually
accepted and reciprocally agreed, being ruled by the conditions hereinafter described. 

CHAPTER I

Object, type and term of the concession  

Clause One

Object of the concession  

        ONE—The object of the concession awarded by the present concession contract is the operation of games of chance or other games in casinos in the Macau
Special Administrative Region of the People's Republic of China, hereafter designated as the Macau Special Administrative Region or the grantee. 

        TWO—The
concession does not cover the operation of: 

	1)
	Mutual
betting;

	2)
	Operations
offered to the public except as provided for in number 7 of article 3 of Law number 16/2001:

	3)
	Interactive
games;

	4)
	Games
of chance or any other type of gaming, betting or operations on board ship or aircraft, except as established in paragraph 1) of number 3 and number 4 of article 5
of Law number 16/2001. 

Clause Two

Objectives of the concession  

        The concessionaire is committed to: 

	1)
	Ensure
the adequate operation and management of games of chance or other games in casinos;

	2)
	Employ
in the management and operation of games of chance or other games in casinos, solely persons suitable for those functions and for assuming those responsibilities;

	3)
	Manage
and operate the games of chance or other games in casinos in a fair and honest manner, free of criminal influence; and

	4)
	Safeguard
and protect the interests of the Macau Special Administrative Region in the receiving of taxes resultant from the operation of their casinos and other gaming areas. 

Clause Three

Applicable Law and proper jurisdiction  

        ONE—The present concession contract is exclusively governed by the law of the Macau Special Administrative Region. 

        TWO—The
concessionaire renounces litigation in any other jurisdiction outside of the Macau Special Administrative Region, as it recognizes and submits to the exclusive
jurisdiction of the courts of the Macau Special Administrative Region to decide any litigation or conflicts of interests that may arise. 

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Clause Four

Compliance with the legislation of the Macau Special Administrative Region  

        The concessionaire shall comply with the applicable legislation applicable in the Macau Special Administrative Region, and shall renounce to invoke legislation
from outside the Macau Special Administrative Region, namely in order to be considered exempt from fulfilling the obligations or the conduct to which it is committed. 

Clause Five

Participation in the operation of games of chance or any other games in

casinos in other jurisdictions  

        ONE—If the Concessionaire engages in any licensing process or contract to operate casino gaming or other forms of gaming in any other jurisdictions,
including the participation in operation merely through a management contract, it shall inform the Government of such engagement or contract. If the Concessionaire is aware that any of its directors,
any of its controlling shareholders, including the ultimate controlling shareholder, or if any one who directly or indirectly holds 10% or over 10% of the company capital of the Concessionaire has the
aforesaid engagement or contract, it shall also inform the Government immediately.

        TWO—For
the purposes of the above the Concessionaire should submit to and inform the Government, or make due diligence to obtain, any documents, information or data that the
Government may require as long such documents, information and data are not subject to confidentiality under the laws of the respective jurisdiction. 

Clause Six

Concession system  

        The concession system is included in the legal framework, which comprises the juridical system for the operation of games of chance or other games in casinos,
approved by Law number 16/2001, Administrative Rule number 26/2001, the rules for the operation of games of chance, namely those foreseen under article 55 of Law number 16/2001, and further
complementary regulations of the referred Law number 16/2001, as well as the present concession contract. 

Clause Seven

Operation of the concession  

        The concessionaire shall operate the concession under the terms and conditions established in the present concession contract. 

Clause Eight

Term of the concession  

        ONE—The term of the concession granted under the present contract is of twenty years, beginning on 27th day of June of the year two
thousand and two and terminating on 26th day of June of the year two thousand and twenty two. 

        TWO—The
provisions of the previous article do not inhibit the applicability of the clauses of the present concession contract that may last beyond the term of the concession. 

CHAPTER II

Locations for the operation and functioning of the casinos

and other gaming areas  

Clause Nine

Locations for the operation of the concession  

        ONE—In carrying out its activity, the concessionaire may only operate games of chance or other games, in casinos and other gaming areas previously
authorized and classified by the Government. 

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        TWO—The
allocation of any other premises to the operation of the concession requires the authorization of the Government. 

Clause Ten

Types of games, gaming tables and electric or mechanic gaming machines  

        ONE—The concessionaire is authorized to operate all types of gaming established under number 3 of article 3 of Law number 16/2001, as well as
other types of games authorized under the terms of numbers 4 and 5 of the same article. The concessionaire is furthermore authorized to operate any electrical or mechanical gaming machines, including  "slot
machines", under the terms of the law. 

        TWO—The
concessionaire shall annually submit, during the month of December, to the Games Supervision and Coordination Bureau, (Direcção de
Inspecção e Coordenação de Jogos) hereinafter designated as DICJ, a list which shall specify the number of gaming tables and electrical or
mechanical machines, including "slot machines", that it intends to operate during the following year, as well as their respective location. 

        THREE—The
number of gaming tables and of electrical or mechanical machines, including "slot machines" to be operated by the
concessionaire may be altered by means of prior communication to DICJ. 

Clause Eleven

Continuous functioning of the casinos  

        ONE—The concessionaire shall open the casinos every day of each year. 

        TWO—Without
prejudice of the provisions of the previous article the concessionaire may establish a daily period of opening to the public of the casinos and the activities
they integrate. 

        THREE—The
schedule of the daily period of opening to the public of the casinos and the activities they integrate, shall be submitted in advance to the Government, and affixed
at the entrance to the casinos. 

        FOUR—The
alteration to the daily period in which casinos and the activities they integrate are open to the public shall be submitted to the Government with a minimum advance
of three days. 

Clause Twelve

Suspension of operations of the casino and other gaming areas  

        ONE—The concessionaire shall request from the Government, with a minimum advance of three days, by means of a documented petition, authorization to
suspend the operations of one or more casinos and other gaming areas for a period of one or more days. 

        TWO—The
authorization referred to in the previous article is waived in emergency situations or in cases of force majeure,
namely those resulting from serious accident, catastrophe or natural calamity, that may entail serious risk to the safety of persons, in which case the concessionaire shall inform the Government as
soon as possible, of the suspension of operation of the casino or other gaming areas. 

Clause Thirteen

Electronic equipment for surveillance and control  

        ONE—The concessionaire shall install, in the casinos and other gaming areas, electronic equipment for surveillance and control of high international
quality and approved by DICJ. To that effect, the concessionaire shall submit a written request to the same Bureau, identifying the equipment it intends to install, enclosing the technical
specifications thereof. However, the DICJ may, at any moment, request the presentation of specimens or samples of the referred equipment. 

        TWO—The
concessionaire is further committed to install electronic equipment for surveillance and control approved by the DICJ, in other areas attached to the casinos and
other gaming areas or in access and connecting areas, whenever so requested by the same Bureau. 

4

 

        THREE—The
concessionaire shall promote the installation of new electronic equipment for surveillance and control, approved by DICJ, whenever a substantiated request is made
by the same Bureau namely in order to maintain the high international quality referred in number ONE. 

        FOUR—The
concessionaire shall inform the proper authorities as soon as possible, of any acts or facts which constitute crime or administrative infraction of which it has
knowledge, as well as any other illegal acts or facts that it may consider as serious. 

CHAPTER III

Concessionaire Company  

Clause Fourteen

Corporate purpose, head office and form of company  

        ONE—The concessionaire is committed to have, as an exclusive corporate purpose, the operation of games of chance or other games in casinos. 

        TWO—The
corporate purpose of the concessionaire may, depending on Government authorization, include activities related to the operation of games of chance or other games in
casinos. 

        THREE—The
concessionaire shall maintain its head office within the Macau Special Administrative Region under the form of Limited Liability Company. 

Clause Fifteen

Capital stock and shares  

        ONE—The concessionaire shall maintain a capital stock amounting to not less than MOP 200,000,000.00 (two hundred million patacas). 

        TWO—The
total capital stock of the concessionaire is represented exclusively by registered nominative shares. 

        THREE—An
increase of the concessionaire's capital through public subscription requires authorization by the Government. 

        FOUR—The
issuing of preferential shares by the concessionaire requires authorization by the Government. 

        FIVE—Without
prejudice of the established in the previous article, the creation or the issuing of types or series of shares representing the concessionaire's capital stock,
as well as their conversion of one type of shares into another, requires Government authorization. 

        SIX—The
concessionaire shall make all efforts, to have the total capital stock of the concessionaire's shareholders who are corporate bodies, and the total capital stock of
the holders of capital shares who are corporate bodies, and so on, up to the ultimate holders of capital shares, whether these are individual or corporate bodies, be exclusively represented by
registered nominative shares, except in relation to corporate bodies that are quoted on the stock exchange in what refers to the transacted shares. 

Clause Sixteen

Transfer and encumbering of shares  

        ONE—The transfer or encumbering, for any reason, of the property or other rights on registered shares representing the concessionaire's capital stock
or the carrying out of any other act that may involve the granting of voting rights or other social rights to a person other than the holder, requires government authorization. 

        TWO—In
the case referred to in the previous article, the concessionaire shall always refuse the registry and shall not recognize as shareholder any entity that may acquire or
possess shares representing its capital stock in violation of the provisions of the present concession contract or the 

5

 

law, and shall not carry out any action by which it, implicitly or explicitly recognises the transfer among living or encumbering as referred to in the previous article. 

        THREE—The
transfer mortis causa of the property or other rights on shares representing the concessionaire's capital stock must
be communicated to the Government, as soon as possible; the
concessionaire shall, at the same time, make all efforts to have the transfer registered in its Shares Registration Book. 

        FOUR—Once
obtained the authorization referred in number ONE, the holder of the property or other right on shares representing the concessionaire's capital stock, when
transferring or encumbering or carrying out an act which involves the transfer to another party of the voting right or other social rights, shall immediately inform the concessionaire, who shall
inform the DICJ, within thirty days of the register in the Shares Registration Book of the concessionaire or equivalent formality, and shall send copy of the documents that formalize that juridical
transaction and furnish detailed information on any established terms and conditions. 

        FIVE—The
concessionaire shall make all efforts to submit for Government approval any transfer between living parties, for whatever reason, of the property or other right on
the capital shares of the holders representing the capital stock of the concessionaire, be they individual or corporate bodies and the capital stock of the holders of capital shares that are corporate
bodies, whether these holders are individual or corporate bodies, and so on, up to the ultimate holders of capital shares, whether they are individual or corporate bodies, except for corporate bodies
that are quoted on the exchange market in what refers to the shares therein traded, when this capital share directly or indirectly corresponds to a value of 5% or more of the concessionaire's capital
stock. 

        SIX—The
transfer mortis causa of the property or other right on the capital share of holders of 5% or more of capital shares
representative the capital stock of the concessionaire's shareholders, whether individual or corporate bodies, and of the capital stock of the holders of 5% or more of capital shares of those that are
corporate bodies, whether those holders are individual or corporate bodies, and so on, up to the ultimate holders of capital shares, whether these are individual or corporate bodies, should be
submitted by the concessionaire to the Government, as soon as possible after the fact is known. 

        SEVEN—The
concessionaire shall, furthermore, inform the Government, as soon as the fact is known, of the encumbering, for any reason, of the capital share representing the
capital stock of its shareholders and of the capital shares held by holders of the capital stock of these shareholders, and so on, up to the capital share of the ultimate holders when the same capital
share indirectly corresponds to 5% or more of the concessionaire's capital stock except for the corporate bodies that are quoted on the stock exchange in what concerns the shares therein traded, 

        EIGHT—The
previous article is equally applicable to the implementation of any acts that involve the granting of voting rights or other social rights to a person other than
its holder, except as to corporate bodies that are quoted on the stock market in what refers to the shares therein traded. 

        NINE—The
provisions of number FOUR are applicable to the transfer, under any title, of the property or other right on the capital shares referred to in number FIVE, with the
appropriate adaptations. 

        TEN—In
the case of a dominant shareholder of the concessionaire not wishing to continue to be a shareholder of the same, by virtue of having received written instructions to
that end from an agency charged with the regulation of the activity of operation of games of chance or other games in casinos of
another jurisdiction in which it is a concessionaire or is licensed to operate games of chance in casinos or in which it is the dominant partner of the concessionaire or company licensed to operate
games of chance in casinos, the Government, if it considers that such written instructions result from acts not of the responsibility of the concessionaire or the referred dominant partner, authorizes
that the dominant partner transfer the ownership of the capital stock it holds in the concessionaire, without prejudice of the necessity of authorization of the Government as to the acquisition of
said capital stock by a third party. 

6

 

Clause Seventeen

Issue of bonds  

        The issue of bonds by the concessionaire requires Government authorization. 

Clause Eighteen

Quoted on the stock exchange  

        ONE—The concessionaire or a company of which it is the dominant partner may not be quoted on the stock exchange, without prior Government
authorization. 

        TWO—The
concessionaire shall also make all efforts so that the corporate bodies that are its dominant partners and whose principal activity consists on the execution,
directly or indirectly, of projects referred to in the Investment Plan attached to the present concession contract, do not request or proceed to be quoted on the stock exchange without previously
informing the Government. 

        THREE—The
request for authorization referred in number ONE, and the advance information of the Government referred in the previous number must be, respectively, formulated or
effected by the concessionaire and documented with all the necessary data, without prejudice of the Government requesting additional documents, data or information. 

Clause Nineteen

Share and capital stock structure  

        ONE—The concessionaire shall submit to the Government annually, during the month of December, its share structure as well as the structure of the
capital stock of the corporate bodies, maxime companies, holders of 5% or more of the concessionaire's capital stock, as well as the structure of the
capital stock of the corporate bodies who are holders of 5% or more of the capital stock, and so on up to the individual or corporate bodies who are the ultimate shareholders, except in relation to
corporate bodies
that are quoted on the stock exchange in what refers to the shares therein traded, or submit a declaration attesting that these did not suffer any alteration. 

        TWO—The
concessionaire shall also endeavour to obtain and deliver to the Government, together with the update or the declaration referred to in the previous paragraph, a
declaration signed by each of its shareholders and the persons referred to in the previous number, duly authenticated, attesting that they are holders of the number of shares declared, and that these
are registered nominative shares, accompanied by a copy of the shares representing the respective equity. 

Clause Twenty

Prohibition to concentrate positions in governing bodies  

        ONE—The concessionaire shall not appoint to the Board of Directors, the Board of the General Meeting, the Audit Board or any other governing body, any
person who holds a position in a governing body of another concessionaire, sub-concessionaire or concessionaire's management company, operating in the Macau Special Administrative Region. 

        TWO—The
concessionaire shall inform the government, in the shortest possible period of time, of the appointment of any person to assume a position in the Board of Directors,
the Board of the General Meeting, the Audit Board or any other governing body of the concessionaire. 

        THREE—The
Government shall inform the concessionaire of the appointment of any person to assume a position on the Board of Directors, the Board of the General Meeting, the
Audit Board or any other governing body of other concessionaires, sub-concessionaires or concessionaire's management companies, operating in the Macau Special Administrative Region. 

Clause Twenty One

Management  

        ONE—The delegation of the management of the concessionaire, including the appointment of the Executive-Director, the scope of his powers and the term
of the delegation, as well as any alteration, 

7

 

namely when involving replacement, temporary or definitive of the Executive-Director, is subject to Government authorization. For that purpose, the concessionaire shall send to the Government a draft
of the resolution of its Board of Directors, containing the proposal for the delegation of the management of the concessionaire, including the identification of the Executive-Director, the scope of
his powers and the term of the delegation, references relative to replacement in situations of impediment, as well as any deliberation relative to replacement, temporary of definitive, of the
Executive-Director. A delegation of the management of the concessionaire does not have any effect, in any form, without the authorization of the Government in relation to every element. 

        TWO—If
the Government does not approve any or some of the terms of the delegation referred in the previous paragraph, the concessionaire is bound to send to the Government,
within fifteen days from the day the concessionaire receives the notification of non-acceptance, a new resolution draft, and in case the person appointed as Executive Director is not
accepted by the Government, a new Annex II of the Administrative Rule number 26/2001 should be submitted by the new Executive Director. 

        THREE—The
concessionaire shall ensure that no powers of attorney granting, based on a stable relation, powers that are conferred on the Board of Directors, to carry out any
business in relation to the operation of the company on behalf of the concessionaire, with the exception of acts of the mere running of current business, namely with public offices and services,
except with the authorization of the Government. 

Clause Twenty Two

Articles of Association and shareholders agreements  

        ONE—Any change to the concessionaire's articles of association requires the approval of the Government. 

        TWO—The
project for the change of the concessionaire's articles of association shall be sent, for approval, to the Government, with a minimum advance of thirty days in
relation to the date of the Shareholders General Assembly in which the change will be discussed. 

        THREE—The
concessionaire shall deliver to the Government an authenticated copy of the change to its articles of association, within thirty days after the execution. 

        FOUR—The
concessionaire shall inform the Government of any shareholders agreement of which it gains knowledge. To that effect, and without prejudice of other courses of
action it can or shall take, the concessionaire is bound to enquire from its shareholders, in the 15 days preceding any shareholder's General Assembly, or in the course of a General Assembly if
it was not called, on the existence of shareholders agreements namely in relation to the exercise of voting rights or other social rights, and to inform the Government of the result of such enquiries. 

        FIVE—The
government must, within sixty days, notify the concessionaire of the approval of the change of the Articles of Association and of the shareholders agreements. 

8

   Clause Twenty Three

Duty to inform  

        ONE—Without prejudice of other obligations to inform established in the system of concessions referred to in clause six, the concessionaire shall: 

	1)
	Inform
the Government, with the shortest possible delay, of any circumstances that may affect its normal functioning, such as those that may be related to its liquidity or solvency,
the existence of any law proceedings against it or any one of its directors, shareholders with 5% or more of its capital stock and main employees with positions of relevance in the casino, any act or
fact that takes place in the casinos and other gaming areas that may be considered a crime or administrative infraction that may come to its notice and any adverse attitude directed at the
concessionaire or members of its governing bodies, by a responsible member of an entity or a worker of the Public Administration of the Macau Special Administrative Region, including agents of the
Security Forces and Services.

	2)
	Inform
the Government, with the shortest possible delay, of any and every event that injure, hinder or substantially increase the financial burden or the difficulty in fully complying
with the obligations resulting from the present concession contract, or that may cause the termination of the concession contract under the terms established in chapter XIX;

	3)
	Inform
the Government, with the shortest possible delay, as to any of the following facts or occurrences:

	1.
	Regular
or incidental, periodical or extraordinary remuneration of its directors, financers and main employees with positions of relevance in the casino, whether these are received as
salaries, wages, remunerations or other, and well as any mechanism for their participation in profits;

	2.
	Existing
benefits or benefits to be created, including share in the profits;

	3.
	Contracts
for management and services, existing or to be proposed. 

	4)
	Deliver
to the Government, with the shortest possible delay, authenticated copies of:

	1.
	Contracts
or other instruments that refer or describe any remuneration mentioned in number 1 of the previous paragraph;

	2.
	Contracts
or other instruments that refer or describe any benefits or forms of distribution of profits, existing or to be created;

	3.
	Contracts
for management and services, existing or to be proposed. 

	5)
	Inform
the Government, with the shortest possible delay as to any serious alteration, imminent or foreseeable, to its economic and financial situation, as well as to the economic and
financial situation:

	1.
	Of
its dominant partners;

	2.
	Of
entities closely associated, namely those that have taken any commitment or pledged any guarantee towards the financing of the investments and obligations that the concessionaire
must carry out or accept by reasons of the contract; and

	3.
	Of
the shareholders that hold 5% or more of its capital stock who, in accordance with the terms of paragraph 2) of number 1 of article 18 of Law number 16/2001, have
assumed the commitment or pledged a guarantee for the financing of the investments and obligations that the concessionaire must carry out or accept by reasons of contract. 

9

 

	6)
	Inform
the Government, with the shortest possible delay, when the average annual turnover with a third party has reached MOP 250,000,000.00 (two hundred and fifty million patacas) or
more;

	7)
	To
annually submit to DICJ, during the month of January, a document referring to all its bank accounts and respective balance;

	8)
	To
deliver, in the shortest possible period of time, any complementary or additional information requested by the Government;

	9)
	To
deliver to DICJ and to the Financial Services Bureau, hereinafter designated as DSF, with the shortest possible delay, all elements and information that these entities may require
for the complete fulfilment of their functions. 

        TWO—The
Government may determine that the obligations foreseen in 3) and 4) of the previous paragraph be fulfilled annually. 

CHAPTER IV

Management Company  

Clause 24

Requirement to inform in advance and request Government authorization  

        ONE—The concessionaire shall inform the Government, with a minimum prior notice of ninety days, of its intention to enter into a contract with a
management company. 

        TWO—The
concessionaire shall request authorization from the Government whenever it intends to sign a management contract with a management company by which the mentioned
company will assume its managing powers. 

        THREE—For
the purposes of the previous paragraph, the concessionaire shall submit, together with the request for authorization, an authenticated copy of the articles of
association of the management company or equivalent document and the draft of the respective management contract. 

CHAPTER V

Suitability  

Clause Twenty Five

Suitability of the concessionaire  

        ONE—The concessionaire shall keep its suitability qualifications for the term of the concession, in accordance to legal terms. 

        TWO—For
the purposes of the previous paragraph, the concessionaire is subject to on-going and permanent monitoring and supervision by the Government, in
accordance with legal terms. 

        THREE—The
concessionaire undertakes to defray, as soon as possible, the costs incurred with the verification of its suitability; for that purpose, the DICJ shall issue a
document, which will specify those costs that shall constitute sufficient evidence of same. 

Clause Twenty Six

Suitability of the shareholders, directors and main employees of the

concessionaire and management companies  

        ONE—The concessionaire's shareholders who hold 5% or more of its capital stock, its directors and its main employees with relevant positions in the
casino must retain their suitability qualifications for the term of the concession, in accordance with legal terms. 

10

 

        TWO—For
the purposes of the previous paragraph, the concessionaire's shareholders who hold 5% or more of its capital stock, its directors and its main employees with relevant
positions in the casino, are subject to a continuous and permanent monitoring and supervision by the Government, in accordance with legal terms. 

        THREE—The
concessionaire shall make all efforts for the shareholders that hold 5% or more of its capital stock, its directors and main employees with relevant positions in
the casino, to retain their suitability qualifications during the term of the concession, considering that their good name reflects on the good name of the concessionaire. 

        FOUR—The
concessionaire shall request its shareholders who hold 5% or more of its capital stock, its directors and its main employees with relevant positions in the casino,
to inform the Government with
the shortest possible delay, of any and every factor that may be relevant to the good repute of the concessionaire or their own. 

        FIVE—For
the purposes of the previous paragraph, the concessionaire shall enquire, every six months, from the shareholders who hold 5% or more of its capital stock, its
directors and its main employees with relevant positions in the casino, whether they have knowledge of any fact that may relate to the good repute of the concessionaire or their own, although the
concessionaire, having knowledge of any relevant fact, is bound to inform the Government with the shortest possible delay. 

        SIX—The
concessionaire shall inform the Government, with the shortest possible delay upon gaining knowledge of any and every fact that may relate to the good repute of its
shareholders who hold 5% or more of its capital stock, its directors and its main employees with relevant positions in the casino. 

        SEVEN—The
concessionaire shall make all efforts for the managing companies it may contract, as well as holders of 5% or more of its capital stock, its directors and main
employees with relevant positions in the casino, to retain their good name reflect on the good name of the concessionaire. 

        EIGHT—The
regulations in number THREE of the previous clause are applicable to the process of verification of suitability of the concessionaire's shareholders and the
managing companies that hold 5% or more of its capital stock, its directors and main employees with relevant positions in the concessionaire's casino, and of the managing companies with whom it may
establish contracts. 

Clause Twenty Seven

Special duty to cooperate  

        Without prejudice of the general duty to cooperate established in clause sixty seven, the concessionaire shall immediately submit to the Government any document,
information or data that the Government may deem necessary to verify its continued suitability. 

Clause Twenty Eight

Special duty to inform  

        ONE—The concessionaire shall inform the Government, with the shortest possible delay after obtaining knowledge, of the cessation of a licence or
concession for the operation of games of chance or other games in casinos in any jurisdiction of any shareholder who holds 5% or more of its capital stock. 

        TWO—The
concessionaire shall inform the Government, with the shortest possible delay after obtaining knowledge, of any investigation related to a fact that could lead an
agency that governs the activity of the operation of games of chance or other games in casinos in another jurisdiction to punish, suspend or in any way affect the licence or concession for the
operation of games of chance or other 

11

 

games in casinos that any shareholder who holds 5% or more of its capital stock may have in that jurisdiction. 

CHAPTER VI

Financial and financing capacity  

Clause Twenty Nine

Financial capacity of the concessionaire  

        ONE—The concessionaire shall maintain its financial capacity to operate the concession and to fulfil timely and totally the obligations pertaining to
any aspect of its activity, investments and obligations committed by contract or under the terms of the present concession contract, especially as to the Investment Plan attached to the present
concession contract. 

        TWO—For
the purposes established in the previous paragraph the concessionaire and the shareholders holding 5% or more of its capital stock are subject to continuous and
permanent monitoring and supervision by the Government, in accordance with legal terms. 

        THREE—The
concessionaire undertakes to defray, as soon as possible, the costs incurred with the verification of its financial capacity and that of the shareholders holding 5%
or more of its capital stock; for that purpose, the DICJ shall issue a document, which will specify those costs that shall constitute sufficient evidence of same. 

Clause Thirty

Loans or similar contracts  

        ONE—The concessionaire shall inform the Government of any loan granted or similar contract signed with a third party, for an amount of more than MOP
30,000,000.00 (thirty million patacas). 

        TWO—The
concessionaire shall not grant any loan or sign any similar contract with its directors, shareholders or main employees with relevant positions in the casino, without
the authorization of the Government. 

        THREE—The
concessionaire shall not sign any contract with a commercial businessman by which he may assume management powers or the possibility of intervening in the
management of the concessionaire, namely through "step in rights", without the authorization of the Government. 

Clause Thirty One

Assumption of risk  

        ONE—The concessionaire is committed to all the obligations and shall be fully and exclusively responsible for all risks inherent to the concession in
what concerns its financial capacity and its financing, without prejudice of the provisions of clauses forty and seventy five. 

        DOIS—The
grantee shall not be subject to any obligation, and does not assume any responsibility or risk, in what concerns the financing of the concessionaire. 

Clause Thirty Two

Obtaining Financing  

        ONE—The concessionaire shall obtain the necessary financing for the timely and complete fulfilment of the obligations related to any aspect of its
activity, investments and obligations to which it is contractually bound or that it may assume under the terms of the present concession contract, especially of the Investment Plan attached to the
present concession contract. 

12

 

        TWO—The
grantee shall not be held liable for any exceptions or means of defence that may result from contractual relationships established by the concessionaire with third
parties, including financing entities and shareholders of the concessionaire, in order to obtain the financing referred in the previous paragraph. 

Clause Thirty Three

Legal reserves  

        The concessionaire shall maintain the reserves legally required. 

Clause Thirty Four

Special duty to cooperate  

        One—Without prejudice of the general duty to cooperate established in clause sixty seven, the concessionaire shall immediately submit to the
Government any document, information or data that the Government may deem necessary to verify its continued financial capacity. 

        TWO—The
concessionaire shall inform the Government, with the shortest possible delay, of any loans, mortgages, declarations of debt, guarantees or any other obligation
contracted or to be contracted to finance any aspect of its activity, in the amount of MOP 8,000,000.00 (eight million patacas) or more. 

        THREE—The
concessionaire shall send to the Government, with the shortest possible delay, authenticated copies of documents relating to any loans, mortgages, declarations of
debt, guarantees or any other obligation contracted or to be contracted for the financing of any aspect of its activity. 

        FOUR—The
concessionaire shall endeavour to obtain and submit to the Government a declaration subscribed by each one of its dominant partners, including its determinant and
ultimate partner, in which they accept to comply with this special duty to cooperate and shall present any documents and supply any information, data, authorizations or proof that they may be asked
for to that effect. 

CHAPTER VII

Investment Plan  

Clause Thirty Five

Investment Plan  

        ONE—The concessionaire shall carry out the Investment Plan attached to the present concession contract in the terms therein presented. 

        TWO—The
concessionaire shall namely: 

	1)
	Use
skilled labour for all projects;

	2)
	Give
preference, when contracting firms and workers for the execution of the projects referred to in the Investment Plan attached to the present concession contract, to those that
permanently conduct business or are residents of the Macau Special Administrative Region;

	3)
	Respect,
in the execution of the construction projects related to the projects referred to in the Investment Plan attached to the present concession contract, the technical norms and
regulations in practice in the Macau Special Administrative Region, namely the Regulation on Foundations, approved by Decree-Law number 47/96/M of 26 August, and the Regulation for Safety
and Work in the Structure of Buildings and Bridges, approved by Decree-Law number 56/96/M, of 16 September, as well as the specifications and homologation documents of official entities
and the instructions of manufacturers or holders of patents; 

13

 

	4)
	Document
the projects referred to in the Investment Plan attached to the present concession contract, for the approval of the Direcção dos
Serviços de Solos, Obras Públicas e Transportes, hereinafter designated as DSSOPT, with a quality control handbook, prepared by an entity with proven experience in
similar services and of the same type, whose technical competence is recognized and approved by this Direction, with a work plan and respective financial and execution chronograms, with samples of the
most significant materials and the curricula of those responsible for each speciality, apart from all other documents foreseen in the legislation in force, namely Decree-Law number 79/85/M
of August 21; and if the quality control handbook is not submitted or not approved, the concessionaire shall be committed to follow the quality control handbook prepared in the meantime by
experts designated by the DSSOPT;

	5)
	Carry
out the work in perfect conformity with the approved projects, in accordance with legal and regulatory norms in force and in accordance with internationally recognized standards
for construction and supply of the same type, as well as in accordance with art rules;

	6)
	Respect
deadlines in the construction and opening to the public of the projects referred to in the Investment Plan attached to the present concession contract;

	7)
	Use,
for the carrying out of the plans referred in the Investment Plan attached to the present concession contract, materials, systems and equipment certified and approved by
recognized entities and in accordance with international standards, generally accepted as having high international quality;

	8)
	Maintain
the quality of all the plans referred to in the Investment Plan attached to the present concession contract, in accordance with high international standards of quality.

	9)
	Ensure
that commercial businesses comprised in their premises have high international quality standards;

	10)
	Maintain
a modern, efficient and high quality management, in accordance with high international quality standards;

	11)
	Inform
the Government, with the shortest delay possible, of any and every situation that significantly alters or may alter, both in the construction phase of its premises and in the
operation phase of any aspect of its activity, the normal progress of work, as well as of any structural or other anomaly in their premises, by means of a detailed and documented report of these
situations, possibly comprising any contribution from outside sources of recognized competence and repute, also indicating any measures taken or to be taken in order to solve those situations. 

        THREE—The
concessionaire is responsible towards the grantee and third parties for any damage caused by deficiencies, errors or serious omissions in the conception and
dimension of the plans, the execution of construction work and maintenance inherent to the Investment Plan attached to the present concession contract that may be attributed to it. 

        FOUR—The
Government may authorize the alteration of the deadlines referred to in paragraph 6) of number TWO, without the need to revise the present concession
contract. 

        FIVE—The
grantee shall facilitate the direct or indirect execution of the plans referred to in the Investment Plan attached to the present concession contract, by the
concessionaire, in accordance with the terms of the law. 

14

 

Clause Thirty Six

Alteration to the projects comprised in the Investment Plan  

        ONE—In the execution of the Investment Plan attached to the present concession contract, the Government may request any documentation or make
alterations to the execution of these plans, to guarantee the fulfilment of the technical norms and regulations in force and the required quality standards. 

        TWO—The
Government shall not make any alterations to the referred plans that would imply an increase in the global amount referred to in clause thirty nine. 

Clause Thirty Seven

Inspection  

        ONE—The Government, namely through DSSOPT, shall oversee and inspect the construction work, namely the compliance with the work plan and the quality
of materials, systems and equipment, in accordance with applicable legislation in regard to the requirements of the Investment Plan attached to the present concession contract. 

        TWO—The
concessionaire shall be notified by this Direction on the appointment of the DSSOPT representatives to oversee and inspect the construction work; when the overseeing
and inspection of the construction work is to be carried out by more than one representative, one will be appointed to be in charge. 

        THREE—The
concessionaire shall deliver, for the purposes of number ONE, detailed monthly reports, in writing, showing the progress of the Investment Plan attached to the
present concession contract. The said monthly reports shall include, at least: 

	1)
	The
most relevant events, number of employees, quantities of materials, systems and equipment involved;

	2)
	The
work progress in relation to the work programme (progress control);

	3)
	Updates
to the financial and execution chronograms;

	4)
	The
requirements for plans, supplies, means to be used, materials, systems and equipment;

	5)
	The
main measures taken to guarantee compliance with the work programme;

	6)
	Action
to be taken to correct deviations. 

        FOUR—The
concessionaire shall submit extraordinary reports, detailed and in writing, whenever deemed necessary, namely when the normal work progress related to the execution
of the Investment Plan attached to the present concession contract may be jeopardized. 

        FIVE—The
concessionaire shall submit, upon the request of the Government, within the established deadline, any documents, namely written and drawn relating to the Investment
Plan attached to the present concession contract. 

        SIX—The
concessionaire shall furthermore supply in addition to the documents mentioned in the previous paragraph, any clarification and information that may be requested. 

        SEVEN—If
the Government has any doubts as to the quality of the work, it may require that tests be carried out, apart from those foreseen by the concessionaire, consulting
the latter, if necessary, as to the rules of decision to be adopted. 

        EIGHT—The
expenses incurred with the tests referred to in the previous paragraph and the correction of detected deficiencies will be paid by the concessionaire. 

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        NINE—The
orders and notifications related with technical aspects of the work may be addressed, by the Government, namely through DSSOPT, directly to the technical director of
the site. 

        TEN—The
technical director of the site must follow the work closely and be present at the site whenever so required. 

        ELEVEN—The
Government, namely through DSSOPT, may suspend and embargo, under the terms of law, the work in progress whenever there is evidence of non-conformity
with the plans approved, or violation of the legal rules and regulations applicable by law and by virtue of any contract. 

        TWELVE—The
powers of inspection on the compliance with the requirements resulting from the present concession contract do not involve any responsibility on the part of the
grantee for the execution of the construction work: the concessionaire is exclusively responsible for any defect or fault in the conception, execution or operation of the said works, except for those
that may have resulted from a decision of the grantee. 

Clause Thirty Eight

Contracting and subcontracting  

        Contracting and subcontracting of third parties does not exempt the concessionaire from its legal or contractual obligations. 

Clause Thirty Nine

Allocation of the remaining value of the investments included in the

Investment Plan  

        If, on completion of the work of the Investments Plan attached to the present concession contract, the total value of the concessionaire's direct or indirect
expenses, is inferior to the global amount anticipated of MOP 4,000,000,000.00 (four thousand million patacas) for the investments described in the awarding proposal submitted by the concessionaire as
bidder to the first public tender for the awarding of three concessions for the operation of games of chance or other games in casinos and included in the above mentioned Investments Plan, the
concessionaire shall spend the remainder in projects related to its activity, to be indicated by the concessionaire and accepted by the Government, or in projects of relevant public interest for the
Macau Special Administrative Region, to be indicated by the Government. 

Clause Forty

Insurance  

        ONE—The concessionaire shall establish and keep up to date the insurance contracts that will guarantee an effective and comprehensive coverage of the
risks inherent to the activities integrated in the concession. These insurance policies shall be contracted with authorized insurance companies operating in the Macau Special Administrative Region or
if not feasible or too expensive for the concessionaire, with the Government's authorization, with outside insurers, 

        TWO—The
concessionaire shall, specifically, ensure that the following insurance contracts exist and are maintained in force: 

	1)
	Insurance
for work related accidents and professional illnesses;

	2)
	Third
party liability insurance for all its vehicles;

	3)
	Third
party liability insurance for ships, aircraft or other flying engines that are the property of the concessionaire or being used under the leasing system;

	4)
	Third
party liability insurance for the posting of advertising materials; 

16

 

	5)
	General
third party liability insurance related to the operation of games of chance or other games in casinos in the Macau Special Administrative Region, as well as the development of
other activities integrated in the concession and that are not covered by any other insurance policy;

	6)
	Insurance
against damage to buildings, furniture, equipment and other goods allocated to the activities integrated in the concession;

	7)
	Insurance
of buildings (all risks, including third party liability) covering any construction work of, or on, buildings related to the activities integrated in the concession; 

        THREE—The
insurance coverage mentioned in 6) of the previous paragraph is to be of the multi-risk type, and shall cover at least, the following: 

	1)
	Fire,
lightning or explosion (whatever the nature);

	2)
	Rupture
of pipes, spillage or overflowing of tanks, boilers, plumbing, tanks, toilettes or equipment for the transport of water;

	3)
	Floods,
typhoons, tropical storms, volcanic eruptions, earthquakes or other convulsions of nature;

	4)
	Fall
or clashing of aircraft or other flying engines or objects fallen or thrown from them;

	5)
	Vehicle
crashes;

	6)
	Larceny
or theft;

	7)
	Strikes,
assaults, riots, disturbances of public order or other facts of a similar nature. 

        FOUR—The
capital or the minimum limit to be insured, with reference to the insurance mentioned in TWO is the following: 

	1)
	In
accordance with legislation in force for the insurance foreseen in items 1) to 4);

	2)
	An
amount to be determined by the Government for the insurance in item 5), taking into account, among other factors, the turnover of activities integrated in the concession and the
accident rate of the previous year,

	3)
	Equal
to the net value of the goods to be covered by the insurance under item 6), net value meaning the gross value minus accumulated depreciation;

	4)
	The
value of the construction work for the insurance referred in item 7). 

        FIVE—the
concessionaire shall further ensure that the entities they may contract have valid insurance against work related accidents and professional illnesses. 

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        SIX—The concessionaire shall make proof, before the Government, of the existence and full validity of the insurance contracts, by submitting a copy of these at the time they
are contracted and upon renovation. 

        SEVEN—The
concessionaire shall not start any construction or work without previously submitting to the Government the copies referred to in the previous paragraph. 

        EIGHT—Except
by Government authorization, the concessionaire may not cancel, suspend, modify or substitute any insurance contracts, except in the case of a mere change of
insurance company, in which case the concessionaire shall inform the Government of the fact as soon as possible. 

        NINE—The
Government may, at the concessionaire's expense, and resorting to the bail deposited to guarantee the legal or contractual obligations of the concessionaire,
directly pay the insurance, if the concessionaire has not done so. 

CHAPTER VIII

ASSETS  

Clause Forty One

Assets of the Macau Special Administrative Region  

        ONE—The concessionaire shall ensure the maintenance or replacement, in accordance to instructions of the DICJ, of the property/goods of the Macau
Special Administrative Region that may be allocated to the operation of the concession through the temporary transfer of its use, fruition and utilization. 

        TWO—The
concessionaire shall ensure the maintenance of the land, grounds or natural resources, whose management is the responsibility of the Government, under the terms of
article 7 of the Basic Law of
the Macau Special Administrative Region, and that have been or may be allocated to the operation of the concession, either by rental or by concession. 

Clause Forty Two

Other assets  

        ONE—The casinos, as well as the equipment and all utensils pertaining to the games, must be located in the concessionaire's premises, and no expenses
or encumbering may fall on the casinos, equipment and utensils, except with the Government's authorization. 

        TWO—In
spite of the authorization referred to in the previous paragraph, the concessionaire shall ensure that the casinos, as well as the equipment and utensils pertaining to
the games, even if located outside these, are free of any expense or onus at the time the concession terminates. 

        THREE—Except
by Government authorization, the casinos may not be located in buildings, the use and fruition of which are entitled by leasing contracts, whatever their nature,
or any other type of contract that does not confer to the concessionaire total property rights, even if atypical; the said authorization may namely impose the condition, in order to allow the reversal
of the casinos to the Macau Special Administrative Region, that the concessionaire acquire the independent units where the casinos are located, up until one hundred and eighty days before the date
foreseen in number ONE of clause forty three, except if the concession becomes extinct before that date, in which the acquisition must take place in the shortest possible period of time. 

        FOUR—When
duly authorized, the concessionaire shall submit to the Government, a copy of the contracts referred to in the previous paragraph, as well as all the alterations
and changes, even if retroactive. 

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        FIVE—The
concessionaire shall locate all its casinos in buildings or groups of buildings, even though they may constitute a single economic and functional unit, established
as horizontal property, so that they are integrated in one or more independent units, with areas perfectly identified and defined. 

        SIX—For
purposes of the previous paragraph, the concessionaire shall submit to the government, with the shortest possible delay, a certificate of the real estate registry in
relation to the constitution of horizontal property, which shall include the specifications of all independent units, together with a blueprint where the respective areas are defined and marked. 

        SEVEN—The
concessionaire shall register any alteration to the constitution deed for the horizontal property, submitting to the Government, through the DSF, as soon as
possible, the respective real estate registry certificate. 

        EIGHT—The
concessionaire shall furthermore submit for the approval of the Government the regulation of the condominium relating to the horizontal property. 

Clause Forty Three

Reversal of the casinos and equipment and utensils allocated to the games  

        ONE—On the 26th day of June two thousand and twenty two, except if the concession becomes extinct before that date, the casinos, as well
as the equipment and utensils pertaining to the games, even though they may be placed outside these, shall revert cost-free and automatically to the grantee, and the concessionaire shall
surrender them in perfect working order, without prejudice of the normal wear and tear resulting from the operation of the present concession contract, and free of any onus or charge. 

        TWO—The
concessionaire shall immediately deliver the property referred to in the previous paragraph. 

        THREE—If
the concessionaire does not immediately surrender the property referred to in ONE, the Government shall take immediate administrative possession of same, the
expenses being paid for out of the bail to guarantee the compliance with the legal or contractual obligations of the concessionaire. 

        FOUR—When
the concession terminates, the Government shall inspect the property referred to in clauses Forty One and Forty Two, in the presence of the representatives of the
concessionaire, in order to ascertain the condition and maintenance of the mentioned property and a report shall be prepared. 

        FIVE—Should
the dissolution or liquidation of the concessionaire occur, the distribution of its estate cannot be effected until the Government certifies, through the
mandatory inventory mentioned in the next clause, that the property to be reverted is in perfect order and working condition, or until there is assurance, by means of a guarantee accepted by the
Government, of payment of any amounts due to the grantee, by way of indemnity or any other title. 

        SIX—The
ruling in the last part of number ONE does not preclude the normal renovation of equipment and utensils pertaining to the games. 

Clause Forty Four

Inventory of property allocated to the concession  

        ONE—The concessionaire shall prepare, in triplicate, and maintain updated, the inventory of all goods and rights pertaining to the Macau Special
Administrative Region for the use of the concession, as well as all property that shall revert to the Macau Special Administrative Region, and shall annually and prior to the thirty first of May,
update the maps corresponding to alterations that have taken place and send them to the DICJ and the DSF. 

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        TWO—In
the year of the final term of the concession, it is mandatory that the above-described inventory be prepared sixty days before termination. 

        THREE—In
other cases of extinction of the concession, the inventory referred in ONE shall take place at a date and time determined by the Government. 

Clause Forty Five

Improvements  

        The improvements that, for any reason, are done to the property referred to in clause Forty One, as well as to the property reverting to the grantee, do not
entitle the concessionaire to any compensation or indemnity. 

Clause Forty Six

Granting of land for the use of the concessionaire  

        ONE—The system of granting of land for the use of the concessionaire, namely for the operation of the concession, is established in the respective
land granting contract. 

        TWO—The
clauses of the land granting contract to be signed by the Government and the concessionaire are subject to the conditions of the present concession contract, in what
is applicable. 

CHAPTER IX

Premium  

Clause Forty Seven

Premium  

        ONE—The concessionaire shall pay the Macau Special Administrative Region an annual premium, for the term of the concession, as payment for the
awarding of a concession for the operation of games of chance or other games in casinos. 

        TWO—The
amount of the annual premium to be paid by the concessionaire is composed of a fixed and a variable portion. 

        THREE—The
amount of the fixed portion of the premium to be paid by the concessionaire is, under the terms of Dispatch number 215/2001 of the Chief Executive, of MOP
30,000,000.00 (thirty million patacas) per year. 

        FOUR—The
amount of the variable part of the premium to be paid annually by the concessionaire shall be calculated based on the number of gaming tables and electric or
mechanical machines, including "slot machines", operated by same. 

        FIVE—For
the purposes of the previous number: 

	1)
	For
each gaming table reserved for particular games and players, namely operated in a special area or room, the concessionaire shall pay, per year, MOP 300,000,00 (three hundred
thousand patacas).

	2)
	For
each gaming table non-reserved for particular games and players, the concessionaire shall pay, per year, MOP 150,000,00 (one hundred and fifty thousand patacas);

	3)
	For
each electric or mechanic gaming machine, including "slot machines", operated by the concessionaire, the concessionaire shall pay,
per year, MOP 1,000.00 (one thousand patacas). 

        SIX—Apart
from the number of gaming tables that the concessionaire operates at a given time, the amount of the variable portion of the premium cannot be less than the amount
that would result from the permanent operation of 100 (one hundred) gaming tables reserved for particular games and 

20

 

players, namely operated in gaming rooms or special areas, and 100 (one hundred) gaming tables non-reserved for particular games and players. 

        SEVEN—The
concessionaire shall pay the amount of the fixed portion of the premium, up until the tenth day of the month of January of the year to which it refers: payment in
monthly instalments is possible at the discretion of the Government. 

        EIGHT—The
concessionaire shall pay monthly, up until the tenth day of the month following that to which it refers, the amount of the variable portion of the premium referring
to the gaming tables, electric or mechanic gaming machines, including "slot machines" that it operated during the previous month. 

        NINE—For
purposes of the calculation of the amount of the variable part of the premium referred in the previous number, consideration is given to the number of days that in a
given month each gaming table and each electric or mechanic gaming machine, including "slot machines", was operated by the concessionaire. 

        TEN—The
payment of the premium is carried out by submitting the respective payment invoice in the Receiving section of the Finance Department of the Macau Special
Administrative Region. 

Chapter X

Contributions under paragraphs 7) and 8) of article 22 of Law number 16/2001  

Clause Forty Eight

Contribution under paragraph 7) of article 22 of Law number 16/2001  

        ONE—The concessionaire shall pay to the grantee a contribution corresponding to 1.6% (one point six percent) of the gross revenues of the gaming
operation, that will be made available to a public foundation for the promotion, development and study of social, cultural, economic, educational, scientific, academic and charity activities, to be
indicated by the Government. 

        TWO—The
contribution referred above is paid monthly by the concessionaire, prior to the tenth day of the month following that to which it relates, by submission of the
respective payment invoice in the Receiving section of the Finance Department of the Macau Special Administrative Region. 

        THREE—The
contribution referred in number ONE will be the object of a special budget record by the grantee. 

Clause Forty Nine

Contribution under item 8) of article 22 of Law number 16/2001  

        ONE—The concessionaire undertakes to pay the grantee a contribution corresponding to 2.4% (two point four percent) of the gross revenues of the gaming
operation, to be used for urban development, tourist promotion and the social security of the Macau Special Administrative Region. 

        TWO—The
contribution mentioned in the previous paragraph is paid monthly by the concessionaire until the tenth day of the month following that to which it relates, by
submitting the respective payment invoice in the Receiving Section of the Finance Department of the Macau Special Administrative Region. 

        THREE—The
contribution referred to in number ONE will be the subject to a special budget record by the grantee. 

        FOUR—The
Government may appoint one or more projects or one or more entities as beneficiaries of the allocation of part the amounts paid. 

21

 

        FIVE—The
Government and the concessionaire may agree to allocate, to one or more entities or one or more projects, funds, up to the maximum amount of 1.2% (one point two) of
the gross revenue of the gaming operations, in such case the concessionaire may allocate directly the funds to such entities or projects, in which case the amount of the contribution referred to in
ONE to be submitted to the Receiving Section of the Finance Department of the Macau Special Administrative Region, will be reduced accordingly. 

CHAPTER XI

Fiscal obligations and submission of documents  

Clause 50

Special gaming tax  

        ONE—The concessionaire shall pay the Macau Special Administrative Region the special gaming tax established by law, which shall be paid in
duodecimals, by a monthly remittance to the Government up to the tenth day of the month following that to which it refers. 

        TWO—The
payment of the special gaming tax may be effected in patacas or in a currency accepted by the Government. 

        THREE—The
payment of the special gaming tax in patacas is made directly to the Treasury of the Macau Special Administrative Region. 

        FOUR—The
payment of the special gaming tax in currency accepted by the Government is made by means of remittance of that currency to the Macau Monetary Authority who will
place the corresponding amount in patacas at the order of the Treasury of the Macau Special Administrative Region. 

Clause Fifty One

Tax withholding  

        ONE—The concessionaire shall withhold, on a definitive basis, the legally established tax on commissions and other remunerations paid to game
promoters, submitting the respective amounts monthly, up to the tenth day of the month following that to which it refers, to the Receiving section of the Finance Department of the Macau Special
Administrative Region. 

        TWO—The
concessionaire shall withhold, on a definitive basis, the legally established income tax for workers, submitting the respective amounts monthly, up to the tenth day
of the month following that to which it refers, at the Receiving section of the Finance Department of the Macau Special Administrative Region, in accordance with the law. 

Clause Fifty Two

Payment of other taxes, contributions, rates or emoluments due  

        The concessionaire shall pay other taxes, contributions, rates or emoluments due in accordance with the legislation of the Macau Special Administrative Region
from which it has not been exempted. 

Clause Fifty Three

Document proving the non-existence of debts to the Treasury of the

Macau Special Administrative Region  

        ONE—The concessionaire shall supply to the Government annually, until the thirty first of March, a certificate issued by the DSF, referred to the
previous year, confirming that the concessionaire has no debts to the Treasury of the Macau Special Administrative Region, for contributions and taxes, fines or accruals, being including in this
concept the interest on deferred payments and the 3% of debts. 

22

 

        TWO—The
concessionaire shall furthermore supply to the Government, annually and up to thirty first of March, a document referred to the previous year, describing the fiscal
situation of its executive director, the members of its governing bodies and of its shareholders holding 5% or more of its capital stock. 

Clause Fifty Four

Document proving the non-existence of debts to the Social Security of the

Macau Special Administrative Region  

        The concessionaire shall supply the Government annually, until the thirty first of March, a certificate issued by the Social Security Fund of the Macau Special
Administrative Region confirming that the concessionaire has its payments to the Social Security Fund of the Macau Special Administrative Region in order. 

Clause Fifty Five

Furnishing of information  

        ONE—The concessionaire shall submit to the Government every quarter, until the last day of the month following the end of the respective quarter, its
trial balance relating to the previous quarter, except for the last quarter of each year that is sent until the last day of the month of February of the following year. 

        TWO—The
concessionaire shall also submit to the Government, until thirty days before the date of the annual general meeting to approve the accounts, the following elements: 

	1)
	The
set of accounting and statistic maps referring to the previous fiscal year;

	2)
	The
full names, in all possible versions, of those who, during the respective year were part of management and fiscal boards, of the appointed attorneys, as well as of the person
responsible for the accounts department; and

	3)
	A
copy of the annual report of the board of directors, together with the report of the audit board and of the external auditors. 

Clause Fifty Six

Accounting and internal control  

        ONE—The concessionaire shall have its own accounting, a sound administrative organization and adequate control procedures, and shall follow, as to
these matters, the instructions issued by the government, namely through the DICJ or the DSF. 

        TWO—In
the format and rendering of the accounts, the concessionaire shall solely follow the criteria of the Official Accounting Plan in effect in the Macau Special
Administrative Region, without prejudice of the Head of the Executive, by proposal of the director of the DICJ or the director of the DSF, eventually making mandatory the existence of certain books,
documents or other accounting elements, as well as determining the criteria to be adopted by the concessionaire in the accounting records of its operations and the observance of special norms in their
preparation or presentation. 

Clause Fifty Seven

External audit of annual accounts  

        The concessionaire shall carry out an annual audit to its accounts, conducted by an external independent agent of recognized international repute, previously
accepted by the DICJ and the DSF, supplying in advance all the necessary documentation, namely that referred in article 34 of Law number 16/2001. 

23

 

Clause Fifty Eight

Extraordinary Audits  

        The concessionaire shall at any moment, with or without advance notice, accept extraordinary audits, carried out by an external independent agent of recognized
international repute or by another entity, as and when the DICJ or the DSF deem it necessary or convenient. 

Clause Fifty Nine

Mandatory publications  

        ONE—The concessionaire is committed to annually publishing, until the thirtieth of April, and in relation to the previous fiscal year ended at the
thirty first of December, in the Official Gazette of the Macau Special Administrative Region, and in two of the most widely read newspapers of the Macau Special Administrative Region, one being
necessarily in the Chinese language and the other in the Portuguese language, the following information: 

	1)
	Balance
sheet, statement of results and attachments;

	2)
	Summary
of the activity report;

	3)
	Report
of the fiscal board

	4)
	Summary
of the external auditors' report

	5)
	List
of qualified shareholders, holding 5% or more of the capital stock, in any period of the year, with indication of the respective percentage value; and

	6)
	The
names of the members of the governing bodies. 

        TWO—The
concessionaire shall submit to the Government, a copy of all the elements referred in the previous paragraph, and of other elements for publication, which is required
by the concession system referred to in clause six, with the minimum advance of ten days prior to the date of publication. 

Clause Sixty

Special duty of cooperation  

        Without prejudice of the general duty to cooperate contemplated in clause sixty seven, the concessionaire shall cooperate with the Government, namely with the
DICJ and the DSF, as to the supply of elements and information that may be solicited by them, and as to the analysis or inspection of its accounts, holding extraordinary audits and, in general, as to
the duties entailed by the concession system referred to in clause six. 

CHAPTER XII

Guarantees  

Clause Sixty One

Bail as guarantee of fulfilment of the legal or contractual obligations

of the concessionaire  

        ONE—The bail, as guarantee of the fulfilment of the legal or contractual obligations of the concessionaire may be given in any one of the forms
legally contemplated, as long as accepted by the Government. 

        TWO—The
concessionaire shall maintain, in favour of the Government, the first demand autonomous bank guarantee, issued by the Banco Nacional Ultramarino, S.A. to guarantee: 

	1)
	the
exact and timely fulfilment of the legal or contractual obligations to which the concessionaire is bound; 

24

 

	2)
	the
exact and timely payment of the premium that the concessionaire is committed to pay for Macau Special Administrative Region under clause Forty Seven;

	3)
	the
payment of fines or other pecuniary penalties that may be levied on the concessionaire by reason of legal ruling or of any clause in the present concession contract;

	4)
	the
payment of any indemnity resulting from contractual responsibility for damage suffered and failed income due to the total or partial non-compliance of the obligations
to which the concessionaire is bound by the present concession contract. 

        THREE—The
concessionaire shall maintain in favour of the Government, the autonomous bank guarantee referred in the previous paragraph in the maximum value of MOP
700,000,000.00 (seven hundred million patacas) from the signing of the present concession contract until the thirty first of March of the year two thousand and seven, and with the maximum value of MOP
300,000,000.00 (three hundred million patacas) from the first of April of the year two thousand and seven until one hundred and eighty days after the term of the concession contract. 

        FOUR—The
concessionaire shall make every effort to fulfil all necessary obligations to maintain in effect the autonomous guarantee referred in number TWO. 

        FIVE—The
Government may resort to the autonomous bank guarantee referred in number TWO, independent of any prior judicial decision, whenever the concessionaire does not
fulfil any of the legal or contractual obligations to which it is bound, does not proceed to effect exact and timely payment of the premiums to which it is bound, does not pay nor contest within the
legal time limit the fines or other pecuniary penalties that have been levied by reason of legal ruling or clause of the present concession contract; the Government may also resort to the autonomous
bank guarantee referred in number TWO if there is cause for payment of any indemnity resulting from contractual responsibility for suffered damage and failed income resulting from the total or partly
non-fulfilment of the obligations to which the concessionaire is bound by the present concession contract. 

        SIX—Whenever
the Government resorts to the autonomous bank guarantee referred in number TWO, the concessionaire shall take all the necessary steps to reinstate its full
effect, within 15 days from the date of notification of the fact. 

        SEVEN—The
autonomous bank guarantee referred to in number TWO may only be cancelled by means of Government authorization. 

        EIGHT—The
Government may authorize the alteration of the terms or conditions referred in numbers THREE to SIX, as well as authorize the substitution of the autonomous bank
guarantee referred in number TWO by another form legally accepted for the posting of bail as guarantee of fulfilment of the legal or contractual obligations of the concessionaire. 

        NINE—The
costs incurred with the issue, maintaining and cancellation of bail as a guarantee of fulfilment of the legal or contractual obligations of the concessionaire are
borne entirely by the concessionaire. 

Clause Sixty Two

Specific bank guarantee for guarantee of the payment of the

special gaming tax  

        ONE—The concessionaire shall produce, on demand by the Government under number 5 of article 27 of Law number 16/2001, if there is justified
concern that the concessionaire may not pay the probable monthly amounts of the special gaming tax, within the deadline and under the terms, conditions and amounts to be established by the Government,
a special autonomous bank guarantee, on first demand, issued in favour of the Government to guarantee the payment of those same amounts. 

25

 

        TWO—The
terms and conditions of the autonomous bank guarantee referred to in the previous paragraph may not be altered without Government authorization, the concessionaire
being bound to fulfil all the obligations that result or may result from maintaining in effect the guarantee in the exact terms in which it was given. 

        THREE—The
Government may resort to the autonomous bank guarantee referred in number ONE, independently of any previous judicial decision, whenever the concessionaire does not
pay the special gaming tax owed to the grantee under the terms of the law and the present concession contract. 

        FOUR—Whenever
the Government resorts to the autonomous bank guarantee referred in number ONE, the concessionaire shall take, within 15 days counting from the date of
notification of the fact, all the necessary steps to reinstate its full effect. 

        FIVE—The
autonomous bank guarantee referred to in number ONE may only be cancelled by the concessionaire one hundred and eighty days after the end of the concession and with
Government authorization. 

        SIX—The
costs incurred with the issue, maintaining and cancellation of the bail of the autonomous bank guarantee referred in number ONE are borne entirely by the
concessionaire. 

Clause Sixty Three

Other Guarantees  

        The autonomous bank guarantee referred in number TWO of clause sixty one includes the guarantees established in number 3 of article 20 and in item 2 of
article 22 of the Law number 16/2001 and on numbers 1 and 2 of article 84 of the Administrative Rule number 26/2001. 

CHAPTER XIII

Inspection of fulfilment of the concessionaire's obligations  

Clause Sixty Four

Inspection, supervision and monitoring by the Government  

        ONE—The power to inspect, supervise and monitor the fulfilment of the obligations of the concessionaire is exercised by the Government, namely through
the DICJ and the DSF. 

        TWO—For
all purposes the concessionaire shall, whenever so required by the Government and without need of advance notice, offer the Government, or any other entity appointed
by the Government and duly mandated to that effect and identified, free access to any part of its premises, as well as free access to examine its accounting or bookkeeping, including any transactions,
books, minutes, accounts and other registers or documents, statistics and registers of management used, supplying the Government or the entity appointed, with photocopies of what they may consider
necessary. 

        THREE—The
concessionaire shall abide by and comply with the determinations of the Government issued within the scope of its powers of inspection and verification, namely the
instructions of the DICJ, including those relating to an eventual suspension of the operations in casinos and other gaming areas. 

        FOUR—The
operation of the concession is subject to the permanent verification and inspection of the DICJ under the terms of applicable legislation. 

26

 

Clause Sixty Five

Daily inspection of the gross revenues of the game operation  

        The concessionaire is subject to daily inspection, by the Government, through the DICJ, of its gross revenues from the game operation, in accordance with legal
terms. 

CHAPTER XIV

General duty to cooperate  

Clause Sixty Six

General duty of the Government to cooperate  

        The Government shall cooperate with the concessionaire thus allowing it fulfil its legal and contractual obligations. 

Clause Sixty Seven

General duty of the Concessionaire to cooperate  

        For purposes of the provisions of the present concession contract, the concessionaire shall cooperate with the Government, producing any documents and giving any
information, data, authorizations or proof that may be solicited. 

CHAPTER XV

Other duties of the concessionaire  

Clause Sixty Eight

Operation of the casinos and other premises and annexes  

        The concessionaire shall keep in normal operation all areas of the casinos and other premises and annexes that are used for the operation of the concession and
for the uses for which they are intended or authorized. 

Clause Sixty Nine

General duties of the concessionaire  

        ONE—It is the special obligation of the concessionaire to promote and demand from all entities that may be contracted for the development of
activities integrated in the concession, the observance of all rules of good organization and functioning, and the special measures related to the patrons of its casinos and other game zones and of
its workers and other persons therein holding working positions. 

        TWO—The
concessionaire undertakes to contract, for the prosecution of the activities integrated in the concession, entities duly licensed and authorized, with the necessary
technical and professional qualifications. 

Clause Seventy

Other Government authorizations  

        Government authorization is required for the replacement, cancellation or change of proof documents and registers related to the activity of the concessionaire or
to the acquisition of equipment and materials for the games. 

Clause Seventy One

Government authorizations and approvals  

        The authorizations and approval of the Government, and their possible refusals, do not exonerate the concessionaire from the timely fulfilment of the obligations
assumed under the present concession 

27

 

contract, neither do they imply, on the part of the Government, of any responsibilities except when its acts have caused expenses or special and abnormal damage to the concessionaire. 

CHAPTER XVI

Responsibility of the concessionaire  

Clause Seventy Two

Civil liability to the grantee  

        The concessionaire is responsible towards the grantee for damage resulting from the total or partial non-fulfilment of its contractual obligations,
due to facts it may be held responsible for. 

Clause Seventy Three

Exoneration of the grantee in the extra-contractual responsibility of the

concessionaire toward third parties  

        ONE—The grantee shall not take or share any responsibility that may arise for the concessionaire from acts carried out by it or at its request that
involve or might involve civil liability or any other. 

        TWO—The
concessionaire will furthermore answer, under the general relationship of consigner-commissioner, for damages caused by entities it has contracted for the operation
of the activities that integrate the concession. 

CHAPTER XVII

Subjective changes to the concession  

Clause Seventy Four

Cession of contractual position, burden, transfer and alienation  

        ONE—The concessionaire shall not cede, transfer, alienate or in any way burden, in total or in part, in express or tacit form, formally or informally,
the operation of a casino or a gaming area or make any juridical deal that has the same result, except with Government authorization. 

        TWO—An
action carried out in violation of the rulings of the previous paragraph, and without prejudice of other applicable sanctions or penalties, entails the payment to the
Macau Special Administrative Region, of the following penal clauses: 

	•
	in
the case of cession, transfer or alienation, as a whole—MOP 1,000,000,000.00 (one thousand million patacas);

	•
	in
the case of cession, transfer or alienation, as a part—MOP 500,000,000.00 (five hundred million patacas);

	•
	in
the case of encumbering, in total or in part—MOP 300,000,000.00 (three hundred million patacas). 

        THREE—The
request for authorization referred in number ONE must be supported by all the necessary documents and the indication of all the details of the juridical deal that
the concessionaire wishes to effect, without prejudice of the Government soliciting additional documents, data or information. 

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   Clause Seventy Five

Sub-concession  

        ONE—The concessionaire, except with Government authorization, undertakes the obligation not to grant a sub-concession, in all or in part,
or make any juridical deal that has the same result. 

        TWO—An
action carried out in violation of the rulings of the previous paragraph, and without prejudice of other applicable sanctions or penalties, entails the payment, to the
Macau Special Administrative Region, of the following penal clauses: 

	•
	In
the case of sub-concession, as whole—MOP 500,000,000.00 (five hundred million patacas);

	•
	In
the case of sub-concession, as a part—MOP 300,000,000.00 (three hundred million patacas); 

        THREE—For
the purposes of the authorization referred in number ONE, the concessionaire shall advise the Government of its intention to sub-concede, supplying all
details that the Government may deem necessary, including all the correspondence exchanged between the concessionaire and the entity with whom it wishes to contract. 

        FOUR—The
sub-concession does not exonerate the concessionaire from the legal or contractual obligations to which it is bound, except if, and in accordance with
the terms of Government authorization, being further subsidiarily responsible before the Macau Special Administrative Region, independent of guilt, for damages resulting from the
non-compliance with the total or part of the contractual obligations of the sub-concessionaire, owing to facts that may be attributed to it, benefiting from the  "privilege of exhaustion of remedies".

CHAPTER XVIII

Non-fulfilment of contract  

Clause Seventy Six

Non-fulfilment of contract  

        ONE—Without prejudice of the rulings in clauses seventy seven and seventy eight, the non-fulfilment attributable to the concessionaire of
the duties and obligations resulting from the present concession contract, or from Government determinations, shall subject the concessionaire to the sanctions or penalties legally or contractually
foreseen. 

        TWO—The
concessionaire is exonerated from the responsibility referred to in the previous chapter in cases of force majeure or
other events that clearly cannot be attributed to it, but only if the timely and total fulfilment has in fact been hindered. 

        THREE—The
only cases considered of force majeure, with the consequences described in the next paragraph, are the unpredictable
and irresistible events, exterior to the concessionaire, the effects of which are independent of the will or the personal circumstances of the concessionaire, namely acts of war, terrorism,
disturbances of the public order, epidemics, atomic radiations, fire, lightning, serious flooding, cyclones, tropical storms, earthquakes and other natural cataclysms that directly affect the
activities integrated in the concession. 

        FOUR—The
concessionaire shall immediately advise the Government of any case of force majeure, and indicate, as soon as
possible the obligations resulting from the present concession contract that it cannot fulfil due to the occurrence, and also, if it be the case, the measures it wishes to implement to reduce the
impact of the said event and/or normalize the fulfilment of those obligations. 

        FIVE—In
any of the cases referred in number THREE, the concessionaire shall reconstruct and/or restore the damaged property to its previous condition, as soon as possible,
reinstating the management and operation of the games of chance or other games in casinos; should the concessionaire have no 

29

 

economic interest in the reconstruction and/or restoring of the referred property, it shall transfer to the grantee the amount of the insurance. 

CHAPTER XIX

Extinction and suspension of the concession  

Clause Seventy Seven

Termination by mutual agreement  

        ONE—The Government and the concessionaire may, at any moment, terminate the present concession contract of by mutual agreement. 

        TWO—The
concessionaire shall be fully responsible for the cessation of the effects of any contracts of which it is part, and the grantee shall not be responsible for anything
in this matter, unless otherwise established. 

Clause Seventy Eight

Redemption  

        ONE—Unless otherwise legally established, the Government may, as from the fifteenth year of the concession, redeem it, by notifying the concessionaire
by registered letter, with receipt notice, at least one year in advance. 

        TWO—Through
the redemption, the grantee assumes all the rights and obligations of the concessionaire resulting from juridical deals validly contracted by it before the date
of the notification referred to in the previous paragraph. 

        THREE—The
obligations contracted by the concessionaire by virtue of the contracts it has signed after the notification referred in number ONE, shall only be assumed by the
grantee if those contracts were, prior to their celebration, authorized by the Government. 

        FOUR—The
assumption by the grantee of the obligations contracted by the concessionaire is made without prejudice of the right of regression for the obligations contracted by
the concessionaire that exceed the normal management of the concession. 

        FIVE—Once
the concession is redeemed, the concessionaire is entitled to a fair and equitable compensation corresponding to the losses resulting from the redemption of the
Resort-Hotel-Casino referred in the Investment Plan annexed to the present contract. The amount of compensation shall be equal to the earnings of the Resort-Hotel-Casino referred in the Investment
Plan annexed to the present contract before interest, depreciation and amortization for the fiscal year immediately preceding the date the redemption is declared, multiplied by the number of years
remaining on the term of the concession contract. 

Clause Seventy Nine

Sequestration  

        ONE—When the cessation or interruption occur or are imminent, as a whole or in part of the operation of the concession by the concessionaire, not
authorized and not due to case of force majeure, or if there are serious disturbances or deficiencies in the organization and management of the
concessionaire or in the general conditions of the installations and equipment, susceptible of compromising the regular operation of the concession, the Government may replace the concessionaire,
directly or by resorting to third parties, ensuring the operation of the concession and promoting the necessary measures to ensure the objective of the present concession contract, for the duration of
the cessation or interruption or if the disturbances and deficiencies continue. 

30

 

        TWO—During
the sequestration, the expenditures necessary for the maintenance and normalization of the operation of the concession are charged to the concessionaire, and the
Government may, to that effect, resort to the bail to fulfil the legal or contractual obligations and to the guarantee posted by the dominant partner of the concessionaire. 

        THREE—As
soon as the reasons for the sequestration are over and the Government judges it appropriate, the concessionaire is notified to resume, within a time limit that will
be fixed, the normal operation of the concession. 

        FOUR—If
the concessionaire does not want to or cannot resume the operation of the concession or if, having done so, the serious disturbances or deficiencies in its
organization and operation continue to exist, the Government may declare the unilateral rescission for non-fulfilment of the present concession contract. 

Clause Eighty

Unilateral rescission for non-fulfilment  

        ONE—The Government may terminate the concession, by means of unilateral rescission for non-fulfilment of the present concession contract,
in case of non-fulfilment of the fundamental obligations by which the concessionaire is legally or contractually bound. 

        TWO—Reasons
for unilateral rescission of the present concession contract are, specifically: 

	1)
	The
deviation from the objective of the concession, either by operating non-authorized games, or by carrying out activities that are excluded from the corporate purpose of
the concessionaire;

	2)
	The
abandonment of the operation of the concession or its unjustified suspension for a period of more than 7 consecutive days or 14 interpolate days within one calendar year;

	3)
	The
transmission, in total or in part of the operation, temporarily or definitively, effected in disrespect of what is established in the concession system as referred to in clause
Six;

	4)
	The
default in payment of taxes, premiums, contributions or other retributions foreseen in the concession system as referred to in clause Six owed to the grantee and not impugned
within the legal period;

	5)
	The
refusal or impossibility of the concessionaire to resume the concession under the terms of number FOUR of the previous clause, or when, having done so, the reasons for the
sequestration continue to exist;

	6)
	The
reiterated opposition to the supervision and inspection or repeated disobedience of the determinations of the Government, namely through the directions of the DICJ;

	7)
	The
systematic non-observance of fundamental obligations foreseen in the concession system as referred to in clause Six;

	8)
	The
default on payment or reinforcement of the bails or guarantees foreseen in the present concession contract under the terms and within the deadlines established;

	9)
	The
bankruptcy or insolvency of the concessionaire;

	10)
	The
practice of serious fraudulent activity, damaging to the public interest;

	11)
	The
serious and reiterated violation of the rules of operation for the practice of games of chance or other games in casinos or of the integrity of the games of chance or other games
in casinos. 

31

 

        THREE—Without
prejudice of the provisions of clause Eighty Three, and in the presence of one of the situations referred to in the previous paragraph or any other that, under
the terms of the present clause, may motivate the unilateral rescission for non-fulfilment of the concession contract, the Government shall notify the concessionaire to, within an
established deadline, fully comply with its obligations and correct, or repair the consequences of its acts, except if it is the case of a non-reparable violation. 

        FOUR—If
the concessionaire does not fulfil its obligations or does not correct or repair the consequences of its acts, in the terms determined by the Government, the
Government may unilaterally rescind the present concession contract by communicating this fact to the concessionaire, and also may notify in writing, the entities who guaranteed the financing of the
investments and obligations assumed by the concessionaire, under the terms and for the purposes established in the concession system as referred to in clause Six, relative to financial capacity. 

        FIVE—The
communication to the concessionaire of the decision to rescind referred to in the previous paragraph takes immediate effect, independent of any other formality. 

        SIX—In
the case of well-founded urgency that cannot accommodate the delays of the process of solving the non-fulfilment foreseen in number THREE, the
Government may, without prejudice of the observance of that process and the observance of the provisions of number FOUR, proceed immediately with the sequestration of the concession under the terms
defined in the previous clause. 

        SEVEN—The
unilateral rescission for non-fulfilment of the present concession contract, under the terms of the present clause, gives rise to a duty to compensate,
on the part of the concessionaire, and the compensation shall be calculated in accordance with the general terms of the Law. 

        EIGHT—The
unilateral rescission for non-fulfilment of the present concession contract entails the immediate and gratuitous reversion of its casinos to the
grantee, as well as the equipment and utensils pertaining to the games even if located elsewhere. 

Clause Eighty One

Termination  

        ONE—The present concession contract terminates on the date of the final term of the concession foreseen in clause Eight and the contractual
relationship between the Parties shall end, without prejudice of the clauses of the present concession contract that shall continue beyond the end of the concession. 

        TWO—When
there is a termination in accordance with the terms of the previous paragraph, the concessionaire shall be fully responsible for the cessation of the effects of any
contract of which it is part, and the grantee shall not assume any responsibility in that matter. 

CHAPTER XX

Revisions and alterations to the contract  

Clause Eighty Two

Revisions to the concession contract  

        ONE—The present concession contract may be revised after negotiations between the Government and the concessionaire, in accordance with the terms of
the law. 

        TWO—The
revision of the present concession contract, as well as any addenda to the same, observes the formalities foreseen in article 91 of Administrative Rule number
26/2001. 

32

 

CHAPTER XXI

Pre-contentious phase  

Clause Eight Three

Consultations in pre-contentious phase  

        ONE—The Parties shall effect consultations whenever there is a question or difference of opinion between them as to validity, application, execution,
interpretation or integration of rules by which the present concession contract is governed. 

        TWO—The
questions that arise do not exonerate the concessionaire from the timely and total fulfilment of the conditions of the present concession contract and the
determinations of the Government that, within its scope, are issued, neither does it permit any interruption of the carrying out of any aspect of its activity, that shall continue to take place under
the conditions established at the time the question is submitted. 

        THREE—The
provisions of the previous paragraph relating to the compliance with Government determinations by the concessionaire is applicable also to successive determinations
on the same matter, even if issued after the date of the beginning of consultations, as long as the first of these successive determinations was communicated to the concessionaire prior to that date. 

CHAPTER XXII

Final provisions  

Clause Eighty Four

Obtaining licenses, permits or authorizations  

        ONE—The present concession contract does not exempt the concessionaire from petitioning, paying costs for and/or make the effort to obtain all the
licences or authorizations necessary to carry out any aspect of its activity or fulfilling the obligations foreseen in the present concession contract, as well as observing and fulfilling all the
requisites necessary for obtaining and maintaining them valid. 

        TWO—The
concessionaire must immediately inform the Government should any licences or authorizations referred to in the previous paragraph be withdrawn, terminated, suspended
or revoked for any reason, or its effect ceased to be operative, indicating at the same time the measures it has taken or will take in order to recover or reactivate such licences, or authorizations. 

        THREE—No
clause of the present concession contract may be considered as a replacement to the need to obtain any license, or authorization legally or contractually foreseen. 

Clause Eighty Five

Rights to industrial and intellectual property  

        ONE—The concessionaire shall respect, in the course of its activity, the rights to industrial and intellectual property, in accordance with the terms
in force in the Macau Special Administrative Region, and the effects that may result from the violation of these rights shall be of the exclusive responsibility of the concessionaire. 

        TWO—The
licenses or authorizations granted to the concessionaire, namely those relating to compliance with the Investment Plan attached to the present concession contract,
presuppose that all rights of industrial and intellectual property have been respected by the concessionaire. 

        THREE—The
concessionaire shall gratuitously cede to the grantee all its studies, projects, plans, blueprints, documents and other materials, of whatever nature that may prove
useful to the functions attributed to the latter, under the terms of the present concession contract, or for the exercise of the rights to which it is entitled under the terms of the same. 

33

 

        FOUR—In
answer to the grantee's request, the concessionaire shall prepare any type of document or declaration, to confirm or register the rights referred to in the previous
paragraph. 

        FIVE—Should
the concessionaire not solve any dispute existing with third parties in relation to eventual violations of the rights of industrial or intellectual property
attributed or to be attributed to the grantee under the terms of the present clause, the grantee may always act in their defence for which the concessionaire shall give all the assistance that may be
required. 

Clause Eighty Six

Notifications, communications, notices, authorizations and approvals  

        ONE—the notifications, communications, notices, authorizations and approvals referred to in the present concession contract, unless otherwise
determined, will be made in writing and be forwarded: 

	1)
	by
hand, as long as covered by register;

	2)
	by
telefax, as long as covered by transmission receipt;

	3)
	by
mail, registered and with receipt notice. 

        TWO—Authorizations
to be granted by the Government must always be in advance, and may establish conditions. 

        THREE—The
lack of answer to a request for authorization and approval, or any other solicitation, expressed by the concessionaire, has the effect of refusal. 

        FOUR—For
the purposes of the present concession contract, the following addresses and telefax numbers shall be considered as the permanent addresses the Parties: 

Government
of the Macau Special Administrative Region:

Direcção de Inspecção e Coordenação de Jogos

Avenida da Praia Grande, numbers 762-804, "China Plaza" building, 21st floor, Macau

Fax: 370296 

Concessionaire:
Wynn Resorts (Macau), S.A,.

Head Office: Avenida da Amizade, number 918,

"World Trade Centre" building, 8th floor, "C", Macau.

Fax: 336057 

        FIVE—The
Parties may alter the addresses and telefax reception numbers indicated in the previous number by means of advance communication addressed to the other Party. 

Clause Eighty Seven

Prohibition of practices restrictive of competition  

        ONE—The concessionaire shall carry out its activities in loyal and healthy competition, respecting the principles applying to a market economy. 

        TWO—The
concessionaire undertakes not to enter into agreements or combined deals, in whatever form, together with other concessionaires, sub-concessionaires or
management companies of concessionaires that operate in the Macau Special Administrative Region, or with companies belonging to the respective groups, that are liable to impede, restrict or distort
competition. 

        THREE—The
concessionaire undertakes not to exploit abusively a dominant position in the market, or a substantial part of it that could impede, restrict or distort
competition. 

34

 

Clause Eighty Eight

Games Promoters  

        For the Government, the concessionaire is responsible for the activity exercised in the casinos and other gaming areas by its registered games promoters, as well
as its directors and collaborators and should therefore supervise their activity. 

Clause Eighty Nine

Promotion of the concessionaire's business  

        ONE—The concessionaire shall promote, within the Macau Special Administrative Region and abroad, advertising and marketing campaigns for its business,
namely its casinos. 

        TWO—The
Government and the concessionaire shall combine their events and advertising and marketing campaigns with the events and campaigns aimed at promoting Macau abroad. 

        THREE—The
concessionaire shall not allow, without the authorization of the Government, the use of images or long written references about its casinos and other premises and
annexes allocated to the operation of the concession, in sites and internet pages, or any other place that aims at promoting interactive games. 

Clause Ninety

Elements integrated in the concession contract  

        The tender for adjudication entered by the concessionaire as an entrant for the first public tender for the attribution of three concessions for the operation of
games of chance or other games in casinos, is considered to be integrated in the present concession contract for all purposes that are not explicitly or implicitly contrary to it. 

Clause Ninety One

Chips to be used in the operation of the concession  

        ONE—The concessionaire shall comply with the instructions of the Government as to the issue and circulation of chips, independent of their type or
nature. 

        TWO—Notwithstanding
the possibility for the Government to determine the maximum amount of chips to be put into circulation, the quantity chips to be put into circulation is
not subject to the consent of the Government. 

        THREE—The
concessionaire has the obligation to guarantee the reimbursement, in cash or through cheque or equivalent credit document, of the chips that have been put into
circulation. 

        FOUR—The
concessionaire shall maintain a ratio of solvency, and constitute provisions and other rules of prudence to be indicated at each moment by the Government as to the
total number of chips to be placed in circulation, in cash or through high level liquidity bonds in order to ensure the immediate payment of same. 

Clause Ninety Two

Confidentiality  

        ONE—The documents produced by the Government or by the concessionaire, in keeping with the conditions of law or the present concession contract, have
a confidential character, and can only be made available to third parties with the authorization of the other Party. 

35

 

        TWO—The
Government and the concessionaire take all the necessary steps to ensure that, respectively, the workers of the Public Administration of the Macau Special
Administrative Region, and the workers of the concessionaire are bound by the duty of secrecy. 

        THREE—The
Government and the concessionaire undertake to enforce the duty of secrecy on other persons who have had or who might have access to confidential documents, namely
through consulting, services and other contracts. 

Clause Ninety Three

Claims register  

        ONE—The concessionaire shall keep and maintain at the disposal of visitors of the casinos and other gaming areas, a claims register, specific for
claims related to the operation of games of chance or other games in casinos. 

        TWO—The
concessionaire shall affix in the casinos and other gaming areas, in a visible manner, a notice indicating the existence of a claims register. 

        THREE—The
concessionaire undertakes to remit to the Government, within 48 hours, copy of the claims registered in the claims register, together with the
concessionaire's report about the same. 

CHAPTER XXIII

Transitory dispositions  

Clause Ninety Four

Professional Training Plan  

        ONE—The concessionaire shall prepare plans regarding professional training for employees who come to occupy positions in the activities integrated in
the concession, within a time limit established by the Government. 

        TWO—The
concessionaire shall submit to the Government, within the time limit established, any other documents or additional information relative to the plans referred to in
the previous paragraph. 

Clause Ninety Five

Appointed Executive-Director  

        ONE- The Government shall inform the concessionaire, within fifteen days from the signing of the present concession contract whether it authorizes
that the person indicated in Attachment I of the Administration Rule number 26/2001, submitted by the concessionaire as bidder for the first public tender for the awarding of three concessions for the
operation of games of chance or other games in casinos, to be the Executive Director for the concessionaire. 

        TWO—The
provisions of numbers ONE and TWO of clause Twenty One are applicable to the first delegation of management by the concessionaire on an Executive Director after the
awarding of the present concession contract. 

Clause Ninety Six

Bank accounts  

        The concessionaire shall submit to the Government within seven days from the signing of the present concession contract, a document stating all its bank accounts
and respective balances. 

36

 

Clause Ninety Seven

Declaration relating to the duty to cooperate  

        The concessionaire shall endeavour to obtain and submit to the Government, within fifteen days from the signing of the present concession contract, a declaration
subscribed by each of its shareholders holding 5% or more of its capital stock, its directors and main employees with relevant positions in the casino, as well as its dominant partners, including the
ultimate dominant partner, by which they accept to be subject to a special duty to cooperate with the Government and to produce any documents and supply whatever information, data, authorizations or
proof that may be requested for that purpose. 

Clause Ninety Eight

Fixed part and variable part of the premium  

        ONE—The payment of the fixed part of the yearly premium foreseen in clause 47, in the respective proportion, is due only from the 26th day of
June of the year two thousand and five, except if, before that date, the concessionaire begins the operation of a casino or gaming area in the Resort—Hotel—Casino complex,
foreseen in the Investment Plan annex to the present concession contract, in which case payment becomes due at once. 

        TWO—The
payment of the variable part of the yearly premium foreseen in clause 47 is only due from the date of starting of operation of the games of chance or other
games in casinos, whether the starting of operations takes place in temporary installations or in the Resort-Hotel-Casino above mentioned. For the purpose of calculation of the variable part of the
premium the concessionaire shall submit to the Government, up to ten days prior to the opening of its first casino or gaming area, whether it be in temporary installations or in the complex referred
in the previous number, a list with the number of gaming tables and electric or mechanic machine, including "slot machines", that it intends to operate
in that year, as well as their respective location. 

        THREE—In
case the concessionaire opens its first casino or gaming area in temporary installations, the amount of the variable portion of the premium cannot be less than the
amount that would result from the permanent operation of 20 (twenty) gaming tables reserved for particular games and players, namely operated in gaming rooms or special areas, and 20 (twenty) gaming
tables non-reserved for particular games and players, until the beginning of operation of a casino or gaming area in the resort complex referred in number ONE. 

        FOUR—The
amounts relative to the variable part of the yearly premium referred in number FIVE of clause 47 will be subject to revision by the Parties as from the third
year of the awarding of the present concession contract. 

Clause Ninety nine

Approval of the articles of association and shareholders agreements  

        The Government shall notify the concessionaire, within sixty days of the signing of the present concession contract, as to whether it approves its articles of
association as well as its shareholders agreements. 

Clause One Hundred

Mandates or Power of Attorney  

        The concessionaire shall inform the Government within fifteen days from the signing of the present concession contract, of each and every mandate or power of
attorney existing on the date of the awarding of the present concession contract, verifying, based on a stable relationship, the powers inherent to the board of directors to conduct business relating
to the operation of the company in the name of the concessionaire, with the exception of the powers for carrying out everyday current 

37

 

business, namely at public offices or services, for the purpose of authorization, or to submit, within the same timing, a declaration of non-existence of same. 

Clause One Hundred and One

Actual participation in the operation of games of chance or other games in

casinos under other jurisdictions  

        The concessionaire shall inform the Government within fifteen days from the signing of the present concession contract, of the actual participation of any one of
its administrators, of the dominant partner, including the ultimate dominant partner or any holder of capital share when corresponding, directly or indirectly, to an amount of 10% or more of its
capital stock, in the operation of games of chance or other games in casinos, even if only through a management contract, in any other jurisdiction. 

Clause One Hundred and Two

Composition of the governing bodies of the concessionaire  

        The concessionaire shall inform the Government within seven days from the signing of the present concession contract as to the composition, at the time of
awarding of the present concession contract, of the board of directors, the annual general meeting, the audit board and other governing bodies of the concessionaire. 

Clause One Hundred and Three

Structure of shareholders and capital stock  

        ONE—The concessionaire shall submit to the Government, within seven days from the signing of the present concession contract, the shareholder
structure of the concessionaire on the date of the awarding of the present concession contract. 

        TWO—The
concessionaire shall submit to the Government, within seven days from the signing of the present concession contract, the structure of the capital stock of corporate
bodies, maxime companies, holding 5% or more of the capital stock of the concessionaire, as well as the structure of the capital stock of corporate
bodies that hold 5% or more of the capital stock of same, and so on up to the individual or corporate bodies who are ultimate partners, on the date of the awarding of the present concession contract. 

        THREE—The
concessionaire shall submit to the Government, within fifteen days from the signing of the present concession contract, the declarations referred to in number TWO
of clause Nineteen, relative to the year two thousand and two. 

Clause One Hundred and Four

Limit to the number of concessions  

        ONE—The grantee shall not award, until the first of April of the year two thousand and nine, concessions for the operation of games of chance or other
games in casinos, so that, at any given time, there are not more than three, as per provisions of the law. 

        TWO—Should
the grantee, after the date referred to in the previous paragraph, award new concessions for the operation of games of chance or other games in casinos, the
conditions of which are, in global terms, more favourable than those foreseen in the present concession contract, the Government shall extend them to the concessionaire by altering the present
concession contract. 

38

 

Clause One Hundred and Five

Revision of the percentage of contributions  

        The percentages of the contributions referred to in clauses Forty Eight and Forty Nine shall be the object of revision by the Parties during the year two thousand
and ten. 

Clause One Hundred and Six

Effective Date  

        The present concession contract, written in both official languages, will come into effect as from 27th day of June of year 2002. 

Thus
it was granted 

        The
Stamp Duty due, as per articles 17 and 24 of Stamp Duty Regulation, on the amount of MOP 115, 00 (one hundred and fifty patacas) and the Notary Fees Due, as per article 4
number 1 and 2 of the Notary Regulation, on the amount of MOP 708.600,00 (seven hundred and eighth thousand six hundred patacas) were paid by the Second Party and the proof of payment was filed. 

        All
the documents mentioned in the concession contract are filed with the Notary Division of the Macau Finance Department under number 17039. 

        This
deed has been read to the parties and its contents were explained out loud to all those present, and the representative of the second party had access to a translation into the
English language as he does not understand either of the official languages. 

	 
	 	 

	/s/  HO HAU WAH      
	 	 
	

/s/  STEPHEN A. WYNN      
	
 	

 
	

 	
 	

/s/  ILLEGIBLE      
 Notary

39

  

 
 

ANNEX TO THE CONCESSION CONTRACT
  INVESTMENT PLAN    
  

        Without prejudice of the provisions of Clause thirty nine of the present concession contract, the concessionaire must build: 

	•
	A
Resort-Hotel-Casino that must be concluded and open to the public on December 2006.

	•
	Total
Investment—4,000,000,000.00 (four thousand million patacas), which must be expended within 7 years upon the signing of this
concession contract. 

40

 

	 	 	 	 	AMERICAN EMBASSY LISBON
	 	 	 	 	Av. Das Forças Armadas

1600-081 Lisboa, Portugal

Tel: 21 -770 -2499

Fax: 21- 727-2354
	

 	
 	

 	
 	

 
	

 	
 	

 	
 	

 
	Republic of Portugal	 	)	 	 
	Providence of Estremadura	 	)	 	 
	City of Lisbon	 	)	 	 
	Embassy of the United States	 	)	 	 
	Of America	 	)	 	 
	

 	
 	

 	
 	

 

        I,
Victoria Perestrello, being duly sworn, do hereby declare that I am thoroughly aquainted with the Portuguese and English languages, that I am accustomed to make translations in these
languages, and that the annexed translation(s) was (were) made by me and it is a (are) true and correct translation(s). 

        This
document consists of 166 pages, each initialed by the translator. 

	

 	
 	

/s/  VICTORIA PERESTRELLO      

	

 	
 	

 

Subscribed and sworn to before me this 29th day of July 2002.

	 	 	/s/  DANIEL BAZAN      
        Daniel
Bazan

        Consul
	

 	
 	

 

41

QuickLinks

Exhibit 10.24

CONCESSION CONTRACT

ANNEX TO THE CONCESSION CONTRACT INVESTMENT PLAN

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]