Document:

Unassociated Document

Exhibit 10.2.1

 

	 	 [Sands China Ltd. Letterhead]	 

 

 

 

May 10, 2012

 

PRIVATE & CONFIDENTIAL

 

Mr. TRACY, Edward Matthew

 

Present

 

Dear Mr. Tracy,

 

SUBJECT:  CONTRACT RENEWAL

 

On behalf of Venetian Macau Limited (the “Company”), I am pleased to offer you the following contract renewal based upon the revised terms and conditions in this letter and subject to all other terms and conditions contained in your Letter of Appointment for Executive and Supplemental Employment Terms Agreement dated August 4, 2010, which remain in full force and effect, except those that conflict with the present document:

 

	
1.   Effective Date:

	
August 1, 2011

	 	 
	
2.   Terms:

	
The initial terms of employment shall be deemed to have commenced on August 1, 2011.  The term shall terminate upon the close of business on August 26, 2013 thereof (the “Initial Term”).  If for any reason the Employee is not able to maintain a valid Macau work permit, the term will automatically expire.

	 	 
	
3.   Duties  and Responsibilities:

	
Clause 2.3 “Duties and Responsibilities” in your Supplemental Employment Terms Agreement dated August 4, 2010 is replaced by the following:

	 	 
	  	
During the Term, the Employee is employed as President and Chief Executive Officer of Sands China Ltd. and reports as appropriate to the Las Vegas Sands Corp Executive Vice President Global Operations (EVPGO).  The Employee is responsible for and has such powers, duties and responsibilities as are generally associated with his offices, provided that same may be modified and/or assigned to the Employee from time to time by the EVPGO, and subject to the supervision, direction and control of the Board of Directors of the Company.

	 	 
	  	
During the Term, the Employee is, among other things, required to focus on the following areas:

	 	 
	  	
a)   Team Work (the Employee’s team and with Las Vegas Sands Corp.):  understanding and acceptance of Corporate resources and work on a more effective alignment with Corporate resources;

	  	
b)   Gaming:  focus on maximizing yield on the floor, working with Mr. Andrew MacDonald and team;

	  	
c)   Senior Leadership Team:  review, assess, and prepare a succession plan;

	  	
d)    Prepare a strategic plan on Macau assets for review pre-budget 2013;

	  	
e)    Successful opening of the Sheraton;

	  	
f)    Accelerate the Company’s ramp up of the performance at Cotai Central;

 

Employee’s signature:      /s/ ET     

Page 1 of 5

  

  

  

	 	 [Sands China Ltd. Letterhead]	 

 

 

 

	  	
g)    Successfully launch the Four Seasons Residences.

	  	
h)    Redevelopment plans for Sands

	 	 
	
4.   Major Compensation Elements:

	
Clause 10 “Major Compensation Elements” in your Letter of Appointment for Executive dated August 4, 2010 is replaced by the following:

	 	 
	
a)   Monthly Income:

	
You will be paid a salary of Eight Hundred Three Thousand and Four Hundred Patacas (MOP803,400.00), PER MONTH, (for reference purposes only, equivalent to USD1,200,000.00 per annum).  Salary will be reviewed annually in accordance with the Company’s compensation policies.

	 	 
	
b)   Incentive Plan:

	
You will be eligible to participate in the Company’s incentive plan, which is payable based on the achievement of individual and the Company’s performance goals.  Your targeted annual incentive opportunity is seventy-five percent (75%) of your Base Salary per annum for the year 2011, eighty-five percent (85%) of your Base Salary per annum for the years of 2012 and 2013.

	 	 
	  	
In the event that the Employee’s employment could be renewed by the Company for the period of years 2013 to 2014, your target annual incentive opportunity of one-hundred percent (100%) of your Base Salary per annum for the year 2013 will be retroactive.

	 	 
	  	
Notwithstanding any other language herein, any payment to you under the Company’s incentive plan is at the sole and absolute discretion of the Company.

	 	 
	
5.   Employment Benefit Programs:

	
Clause 7 “Employment Benefit Programs” in your Supplemental Employment Terms Agreement dated August 4, 2010 is replaced by the following:

	 	 
	  	
You will be eligible to participate in the benefit programs of the Company on the terms and conditions as offered to your grade level.

	 	 
	  	
In addition to the mandatory annual leave (6 days), you will be entitled to 16.5 working days of paid annual leave per year.

	 	 
	  	
Details of the benefit programs are described in the Team Member Handbook and similar materials which will be provided to you.  You agree that except for those specific benefits that are required under Macau SAR law, all other benefit programs may be changed or cancelled from time to time at the discretion of the Company.

	 	 
	  	
The Company will inform the Employee of any change on the benefit programs and if the Employee does not oppose such change or does not communicate such opposition in written to the Company within 60 days, the change is deemed accepted by the Employee.

	 	 
	
a)   Home Leave

       Allowance:

	
The Employee is entitled to four (4) business class airfare return tickets to Pennsylvania, USA, per year, for Employee and Spouse and two (2) business class airfare return tickets from Pennsylvania, USA to Macau, per year, for the Employee’s dependent.

 

 

Employee’s signature:      /s/ ET     

Page 2 of 5

  

  

  

	 	 [Sands China Ltd. Letterhead]	 

 

 

	
6.   Termination:

	
Clause 8.2 “Termination Without Cause” in your Supplemental Employment Terms Agreement dated August 4, 2010 is varied as follows:

	 	 
	
a)   Termination by the 

Company without 

cause, Executive Death 

or Disability:

	
1) Immediate vesting of all granted options, the exercise of such options shall be governed in all other aspects by the plan under which they were granted;

2) Six (6) months base salary in lump sum payment;

3) Pro-rated bonus for the year of termination when and if the bonus for the year will be awarded to other Executives in the Company.

	 	 
	
7.   Upon the End of the agreement:

	
1) Immediate vesting of all granted options, the exercise of such options shall be governed in all other aspects by the plan under which they were granted;

	  	
2) Pro-rated bonus for the year of termination when and if the bonus for the year will be awarded to other Executives in the Company.

	 	 
	
8.   Termination by the Employee 

    for Good Reason:

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

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

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

	 	 
	  	
2)        If the Employee determines that Good Reason exists for termination of this Agreement and Employee’s employment with the Company for any of the reasons described in Section 7b)1) above, the Employee shall provide the Company with written notice of the Employee’s intention to terminate the Employee’s employment.  Such notice shall include a reasonably detailed description of the alleged grounds for termination.  The Company shall have thirty (30) business days from the date of its receipt of such notice within which to cure the alleged grounds for termination.

	 	 
	
9.   Stock:

	
It is the Company intention to grant additional 260,000 SCL stock options, subject to required approval by the Remuneration Committee.  These stock options become effective for the proposes of clause 6 of this letter.  The Employee may become eligible for additional equity if in compliance with Company future equity programs or company discretion.

 

 

Employee’s signature:      /s/ ET     

Page 3 of 5

  

  

  

	 	 [Sands China Ltd. Letterhead]	 

 

 

	
10.   Employment Location:

	
Clause 12 “Employment Location” in your Letter of Appointment for Executive dated August 4, 2010 is varied as follows:

	 	 
	  	
Sands Macao Hotel, The Venetian Macao-Resort-Hotel, The Plaza Macao, Sands Cotai Central or any other Hotels in Macau owned by the Employer and/or subsidiary owned by or other related affiliated of the Company, subject to change at the Company’s discretion.

	 	 
	
11.   Transfer:

	
Clause 17 “Transfer” in your Letter of Appointment for Executive dated August 4, 2010 is replaced by the following:

	 	 
	  	
You may be transferred to another position or to another premises or properties of the Company in Macau SAR, as long as it is consistent with your skills, qualifications and experience at the sole discretion of the Company.  You agree that this agreement may also be transferred to the following but not limited to Sands Macao Hotel, The Venetian Macao-Resort-Hotel, The Plaza Macao, Sands Cotai Central and/or subsidiary owned by or other related affiliated company of Venetian Macau Limited.  Any transference shall be communicated to you in writing.  The terms and conditions of this letter will continue to apply to that new position.

	 	 
	  	
You hereby also agree to be assigned, at any time during your employment with the Company, to any other Macau affiliates of the Company (meaning parent, subsidiary or/and affiliated of the Company) at the sole discretion of the Company.  This assignment will only be effective after communicated to you in writing by a letter of transfer signed by the Company and/or the relevant affiliate.  In any event, your assignment to the affiliate will not affect your vested rights at the time of transfer.

	 	 
	  	
You hereby acknowledged that in any case of transference there will be no cause for termination of your employment agreement.

You also agree that you will not claim nor receive any compensation for any such change in position or assignment to another company unless agreed in writing by the Company.

 

 

Employee’s signature:      /s/ ET     

Page 4 of 5

  

  

  

	 	 [Sands China Ltd. Letterhead]	 

 

 

This letter and any other side letter related to your appointment, signed by both parties shall be read together with and form an integral part of your Letter of Appointment for Executive and Supplemental Employment Terms Agreement dated August 4, 2010.

 

The proposed conditions are only binding upon your signature of this letter and necessary approval from the SCL board of Directors.  Please indicate your acceptance of these employment terms and conditions by signing below and returning the signed copies to Senior Vice President of Human Resources, no later than May 16, 2012.

 

	
Yours Sincerely,

For and on behalf of

Venetian Macau Limited

	  	
Accepted by:

 

 

 

	/s/ Michael A. Leven	  	/s/ Edward Matthew Tracy
	
Michael A. Leven

Director

	  	
TRACY, Edward Matthew

	 	 	 
	
Date:  10 May 2012

	  	
Date:  10 May 2012

 

 

 

 

Employee’s signature:      /s/ ET     

Page 5 of 5Unassociated Document

Exhibit 10.2.2

 

Letterhead of Venetian Macau Limited

 

 

May 1, 2013

 

 

Mr. Edward Tracy

Venetian Macau

Estrada da Baia de N Senhora da Esperanca

Taipa, Macao SAR

P.R. China

 

 

Subject: Contract Renewal

 

Dear Mr. Tracy,

 

On behalf of Venetian Macau Limited (the “Company”), I am pleased to offer you the following contract renewal based upon the revised terms and conditions in this letter and subject to all other terms and conditions contained in your Letter of Appointment for Executive and Supplemental Employment Terms Agreement dated August 4, 2010 and Offer Amendment Letter dated May 10, 2012, which remain in full force and effect, except those that conflict with and are modified/replaced by those in the present document:

 

	
1.

	
Effective Date: May 1st 2013

 

	
2.

	
Term: For the purpose of this contract renewal the initial terms of employment shall commence on May 1, 2013. The Term shall terminate upon the close of business on December 31, 2016. If for any reason the Employee is not able to maintain a valid Macau Work Permit or the Employer’s Employment Permit is revoked or expire, the term of this contract will automatically expire.

 

	
3.

	
Compensation Amendments: The terms of the Contract Renewal offer and acceptance letter dated May 10, 2012 are amended as follows:

 

	
  

	
a.

	
Base Salary: You will be paid an annual salary of USD One Million, Five Hundred Thousands (US$1,500,000) in Macau Patacas in monthly rests. Your salary will be reviewed annually in accordance with the Company’s remuneration policy applicable to senior executives of your rank and seniority.

 

	
  

	
b.

	
Incentive Plan: You will be eligible to participate in the Company’s incentive plan, which provides for incentive bonuses based on the achievement of individual and the Company’s performance goals. Your targeted annual incentive opportunity is one hundred percent (100%) of your Base Salary per annum.

 

	
  

	
 

	

Other than for cause, in the event that Company terminates your employment without cause, or your right to remain and work in Macau is revoked, or in case of termination due to disability, the Company shall pay you the prorated portion of any incentive bonus plus any other incentive payment calculated on annual basis to which you may be entitled.

 

 

  

  

  

 

	
  

	
 

	

Notwithstanding any other provision herein, any payment to you under the Company’s incentive plan is, in accord with Company policy payable at the sole and absolute discretion of the Company which shall not be unreasonably exercised.

 

	
  

	
c.

	

Restricted Stock Award: The Company shall take all steps necessary to ensure that its controlling shareholder Sands China Limited grant One Million (1,000,000) shares of Sands China Limited as restricted stock, to you. All of the said stock shall become vested and exercisable on December 31, 2016, or at such other date or dates as the parties may agree, subject to the required approval of the Sands China Limited’s Remuneration Committee and Board of Directors as well as any amendments to the Sands China Limited Incentive scheme as the Committee may deem necessary.

 

In the event that Company terminates your employment without cause, that your right to remain in Macau is revoked through no fault on your part, or in case of termination due to disability, the Company shall immediately take such steps as may be necessary to ensure that the said restricted stock is vested pro rata and that you be permitted to exercise the prorated portion of the restricted stock so awarded within ninety (90) days of the cessation of your employment.

 

4.           Prior Stock Options: In accord with the terms of the Contract Renewal offer and acceptance letter dated May 10, 2012, all Sands China limited options exercisable at August 26, 2013 shall remain exercisable upon the date.

 

5.           This letter shall be read together with and form an integral part of your original Letter of Appointment and the supplemental terms set out in the aforesaid Agreement dated August 4, 2010 and the Contract Renewal offer and acceptance letter dated May 10, 2012. To the extent that the terms of this Contract Renewal are inconsistent with any of the aforesaid prior agreements, the terms set out herein shall prevail.

 

6.           The parties shall be bound by the aforesaid terms upon the execution of this letter in the manner set out below. Please indicate your acceptance of the aforesaid terms and conditions by signing below and returning the signed copies to the Senior Vice President of Human Resource, no later than May 10, 2013.

 

Yours Sincerely,

 

For and on behalf of

 

Venetian Macau Limited

 

 

/s/ Antonio Ferreira                                        

 

Mr Wu Shun Him (Antonio Ferreira)

Managing Director

Date: 8 May 2013

 

 

  

  

  

 

For and on behalf of

 

Sands China Limited

 

/s/ Michael A. Leven                                 

 

Michael A. Leven

Director

Date: 3 May 2013

 

Accepted by:

 

/s/ Edward Tracy                                       

 

TRACY, Edward Matthew

Date: 7 May 2013

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