Document:

Amended and Restated Investor Rights Agreement

 EXHIBIT 4.4 
 IMPERVA, INC. 
 AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 NOVEMBER 1, 2011 

 TABLE OF CONTENTS 

 

									
	 	  	 	  	 	  	Page	 
			
	 1.
	  	 Registration Rights
	  	 	1	  
		  	 1.1
	  	 Definitions
	  	 	1	  
		  	 1.2
	  	 Request for Registration
	  	 	3	  
		  	 1.3
	  	 Company Registration
	  	 	5	  
		  	 1.4
	  	 Form S-3 Registration
	  	 	6	  
		  	 1.5
	  	 Obligations of the Company
	  	 	8	  
		  	 1.6
	  	 Information from Holder
	  	 	9	  
		  	 1.7
	  	 Expenses of Registration
	  	 	9	  
		  	 1.8
	  	 Delay of Registration
	  	 	10	  
		  	 1.9
	  	 Indemnification
	  	 	10	  
		  	 1.10
	  	 Reports Under the 1934 Act
	  	 	12	  
		  	 1.11
	  	 Assignment of Registration Rights
	  	 	13	  
		  	 1.12
	  	 Limitations on Subsequent Registration Rights
	  	 	13	  
		  	 1.13
	  	 “Market Stand-Off” Agreement
	  	 	13	  
		  	 1.14
	  	 Termination of Registration Rights
	  	 	14	  
			
	 2.
	  	 Miscellaneous
	  	 	14	  
		  	 2.1
	  	 Successors and Assigns
	  	 	14	  
		  	 2.2
	  	 Governing Law
	  	 	15	  
		  	 2.3
	  	 Counterparts
	  	 	15	  
		  	 2.4
	  	 Titles and Subtitles
	  	 	15	  
		  	 2.5
	  	 Notices
	  	 	15	  
		  	 2.6
	  	 Expenses
	  	 	15	  
		  	 2.7
	  	 Entire Agreement: Amendments and Waivers
	  	 	15	  
		  	 2.8
	  	 Severability
	  	 	15	  
		  	 2.9
	  	 Aggregation of Stock
	  	 	15	  
		  	 2.10
	  	 Amendment and Restatement of Prior Agreement
	  	 	16	  

  
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 AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT 

THIS AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT (the “Agreement”) is made as of the 1st day of
November, 2011, by and among Imperva, Inc., a Delaware corporation (the “Company”), and the investors listed on Schedule A hereto, each of which is herein referred to as an “Investor.” 

RECITALS 
 WHEREAS, the Company and the Investors have previously entered into an Amended and Restated Investors’ Rights Agreement dated as of April 2, 2008 (the “Prior Agreement”);

 WHEREAS, the Prior Agreement may be amended, and any provision therein waived, with the written
consent of the Company and the holders of at least 80% of the outstanding Registrable Securities (as such term is defined in the Prior Agreement); 
 WHEREAS, Sections 2.1, 2.2 and 2.3 of the Prior Agreement may be amended, and any provision therein waived, with the written consent of the Company and the holders of at least 66.67% of the
outstanding Registrable Securities (as such term is defined in the Prior Agreement) then held by Major Investors (as such term is defined in the Prior Agreement); 

WHEREAS, the Company intends to offer to the public, in connection with its initial public offering, shares of its
Common Stock pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission (such transaction, the “IPO”); and 

WHEREAS, subject to and effective upon the IPO, the undersigned Investors as holders of at least 80% of the
outstanding Registrable Securities (as such term is defined in the Prior Agreement) of the Company and as holders of at least 66.67% of the outstanding Registrable Securities (as such term is defined in the Prior Agreement) of the Company held by
Major Investors (as such term is defined in the Prior Agreement) of the Company desire to amend and restate the Prior Agreement and to accept the rights created pursuant hereto in lieu of the rights granted to them under the Prior Agreement.

 NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, the Investors
hereby agree that the Prior Agreement shall be amended and restated and replaced in its entirety by this Agreement, and the parties hereto further agree as follows: 

1. Registration Rights. The Company covenants and agrees as follows: 

1.1 Definitions. For purposes of this Section 1: 

(a) The term “Act” means the Securities Act of 1933, as amended. 

 (b) The term “Affiliate” and “Affiliated” means any
person who is an “affiliate” as defined in Rule 12b-2 of the General Rules and Regulations under the U.S. Securities Exchange Act of 1934, as amended, including without limitation, (i) any entity controlling, controlled by or
under common control with such person; (ii) in respect of any person which is a limited or general partnership, its partners, affiliated partnerships managed by the same management company or managing (general) partner or by an entity which
controls, is controlled by, or is under common control with, such management company or managing (general) partner; (iii) the beneficiaries of any person which is a trust; or (iv) with respect to an investment fund, any investment fund
managed by the same general partner or management company or by an affiliate thereof and/or the investors of the investment fund. For purposes of this definition, “person” shall mean any individual, firm, corporation, partnership, trust,
incorporated or unincorporated association, joint venture, joint stock company, governmental authority or other entity of any kind, and shall include any successor (by merger or otherwise) of such entity. 

(c) The term “Form S-3” means such form under the Act as in effect on the date hereof or any registration
form under the Act subsequently adopted by the SEC that permits inclusion or incorporation of substantial information by reference to other documents filed by the Company with the SEC. 

(d) The term “Gold Hill Warrant” shall mean that certain Preferred Stock Purchase Warrant issued by the
Company to Gold Hill Venture Lending 03, LP on December 22, 2005. 
 (e) The term “Holder” means
any person owning or having the right to acquire Registrable Securities or any assignee thereof in accordance with Section 1.11 hereof. 
 (f) The term “Initial Offering” means the Company’s first firm commitment underwritten public offering of its Common Stock under the Act. 

(g) The term “1934 Act” means the Securities Exchange Act of 1934, as amended. 

(h) The terms “register,” “registered,” and “registration” refer to a registration
effected by preparing and filing a registration statement or similar document in compliance with the Act, and the declaration or ordering of effectiveness of such registration statement or document. 

(i) The term “Registrable Securities” means (i) the Common Stock issuable or issued upon conversion of
the Preferred Stock, (ii) the shares of Common Stock issuable or issued upon conversion of the shares of Series B Preferred Stock issuable under the Gold Hill Warrant; provided, however, that such shares shall not be deemed to be Registrable
Securities for purposes of Sections 1.2, 1.12 and 2.7, (iii) the shares of Common Stock issuable or issued upon conversion of the shares of Series B Preferred Stock issuable under the SVB Warrant; provided, however, that such shares shall not
be deemed to be Registrable Securities for purposes of Sections 1.2, 1.12 and 2.7 and (iv) any Common Stock of the Company issued as (or 

  
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issuable upon the conversion or exercise of any warrant, right or other security that is issued as) a dividend or other distribution with respect to, or in exchange for, or in replacement of, the
shares referenced in (i) above, excluding in all cases, however, any Registrable Securities sold by a person in a transaction in which his rights under this Section 1 are not assigned. 

(j) The number of shares of “Registrable Securities” outstanding shall be determined by the number of shares
of Common Stock outstanding that are, and the number of shares of Common Stock issuable pursuant to then exercisable or convertible securities that are, Registrable Securities. 

(k) The term “Rule 144” shall mean Rule 144 under the Act. 

(l) The term “SEC” shall mean the Securities and Exchange Commission. 

(m) The term “SVB Warrant” shall mean that certain Preferred Stock Purchase Warrant issued by the Company to
Silicon Valley Bank on December 22, 2005. 
 1.2 Request for Registration. 

(a) Subject to the conditions of this Section 1.2, if the Company shall receive at any time after the earlier of
(i) four (4) years after the date of this Agreement or (ii) six (6) months after the effective date of the Initial Offering, a written request from the Holders of thirty percent (30%) or more of the Registrable Securities
then outstanding (for purposes of this Section 1.2, the “Initiating Holders”) that the Company file a registration statement under the Act covering the registration of Registrable Securities with an anticipated aggregate offering
price of at least $10,000,000, then the Company shall, within twenty (20) days of the receipt thereof, give written notice of such request to all Holders, and subject to the limitations of this Section 1.2, use all commercially reasonable
efforts to effect, as soon as practicable, the registration under the Act of all Registrable Securities that the Holders request to be registered in a written request received by the Company within twenty (20) days of the mailing of the
Company’s notice pursuant to this Section 1.2(a). 
 (b) If the Initiating Holders intend to
distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to this Section 1.2 and the Company shall include such information in the
written notice referred to in Section 1.2(a). In such event the right of any Holder to include its Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of
such Holder’s Registrable Securities in the underwriting (unless otherwise mutually agreed by a majority in interest of the Initiating Holders and such Holder) to the extent provided herein. All Holders proposing to distribute their securities
through such underwriting shall enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting by a majority in interest of the Initiating Holders (which underwriter or underwriters shall
be reasonably acceptable to the Company). Notwithstanding any other provision of this Section 1.2, if the underwriter advises the Company that marketing factors require a limitation of the number of securities underwritten (including
Registrable Securities), then the Company shall so advise 

  
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all Holders of Registrable Securities that would otherwise be underwritten pursuant hereto, and the number of shares that may be included in the underwriting shall be allocated to the Holders of
such Registrable Securities on a pro rata basis based on the number of Registrable Securities held by all such Holders (including the Initiating Holders). In no event shall any Registrable Securities be excluded from such underwriting unless all
other securities are first excluded. Any Registrable Securities excluded or withdrawn from such underwriting shall be withdrawn from the registration. 
 (c) The Company shall not be required to effect a registration pursuant to this Section 1.2: 
 (i) in any particular jurisdiction in which the Company would be required to execute a general consent to service of process in effecting such registration, unless the Company is already subject to
service in such jurisdiction and except as may be required under the Act; or 
 (ii) after the Company has
effected two (2) registrations pursuant to this Section 1.2, and such registrations have been declared or ordered effective; or 
 (iii) during the period starting with the date sixty (60) days prior to the Company’s good faith estimate of the date of the filing of, and ending on a date one hundred eighty (180) days
following the effective date of, a Company-initiated registration subject to Section 1.3 below, provided that the Company is actively employing in good faith all commercially reasonable efforts to cause such registration statement to become
effective; or 
 (iv) if the Initiating Holders propose to dispose of Registrable Securities that may be
registered on Form S-3 pursuant to Section 1.4 hereof; or 
 (v) if the Company shall furnish to
Holders requesting a registration statement pursuant to this Section 1.2, a certificate signed by the Company’s Chief Executive Officer or Chairman of the Board stating that in the good faith judgment of the Board of Directors of the
Company, it would be seriously detrimental to the Company and its stockholders for such registration statement to be effected at such time, in which event the Company shall have the right to defer such filing for a period of not more than ninety
(90) days after receipt of the request of the Initiating Holders, provided that such right shall be exercised by the Company not more than once in any twelve (12)-month period, provided further that the Company shall not register any
securities for the account of itself or any other stockholder during such one ninety (90) day period (other than a registration relating solely to the sale of securities of participants in a Company stock plan, a registration relating to a
corporate reorganization or transaction under Rule 145 of the Act, a registration on any form that does not include substantially the same information as would be required to be included in a registration statement covering the sale of the
Registrable Securities, or a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered). 

  
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 1.3 Company Registration. 

(a) If the Company proposes to register any of its securities either for its own account of for the account of a security
holder or holders (other than a registration effected pursuant to Section 1.2 or Section 1.4, a registration relating solely to the sale of securities of participants in a Company stock plan, a registration relating to a corporate
reorganization or transaction under Rule 145 of the Act, a registration on any form that does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable
Securities, or a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered), the Company shall, at such time, promptly give each Holder written notice of
such registration. Upon the written request of each Holder given within twenty (20) days after mailing of such notice by the Company in accordance with Section 2.5, the Company shall, subject to the provisions of Section 1.3(c), use
all commercially reasonable efforts to cause to be registered under the Act all of the Registrable Securities that each such Holder has requested to be registered. 

(b) Right to Terminate Registration. The Company shall have the right to terminate or withdraw any registration
initiated by it under this Section 1.3 prior to the effectiveness of such registration whether or not any Holder has elected to include securities in such registration. The expenses of such withdrawn registration shall be borne by the Company
in accordance with Section 1.7 hereof. 
 (c) Underwriting Requirements. In connection with any
offering involving an underwriting of shares of the Company’s capital stock, the Company shall not be required under this Section 1.3 to include any of the Holders’ securities in such underwriting unless they accept the terms of the
underwriting as agreed upon between the Company and the underwriters selected by it (or by other persons entitled to select the underwriters) and enter into an underwriting agreement in customary form, subject to compliance with the terms of
Section 1.9 herein, with such underwriters, and then only in such quantity as the underwriters determine in their sole discretion will not jeopardize the success of the offering by the Company. If the total amount of securities, including
Registrable Securities, requested by stockholders to be included in such offering exceeds the amount of securities sold other than by the Company that the underwriters determine in their sole discretion is compatible with the success of the
offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, that the underwriters determine in their sole discretion will not jeopardize the success of the offering.
In no event shall any Registrable Securities be excluded from such offering unless all other stockholders’ securities are first excluded. In the event that the underwriters determine that less than all of the Registrable Securities requested to
be registered can be included in such offering, then the Registrable Securities that are included in such offering shall be apportioned pro rata among the selling Holders based on the number of Registrable Securities held by all selling Holders or
in such other proportions as shall mutually be agreed to by all such selling Holders. Notwithstanding the foregoing, in no event shall (i) the amount of securities of the selling Holders included in the offering be reduced below thirty
percent (30%) of the total amount of securities included in such offering, unless such offering is the initial public offering of the Company’s securities, in which case the selling Holders may be excluded if the underwriters

  
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make the determination described above and no other stockholder’s securities are included, or (ii) notwithstanding (i) above, any shares being sold by a stockholder exercising a
demand registration right similar to that granted in Section 1.2 be excluded from such offering, except as set forth in Section 1.2. For purposes of the preceding sentence concerning apportionment, for any selling stockholder that
is a Holder of Registrable Securities and that is a venture capital fund, partnership or corporation, the affiliated venture capital funds, partners, retired partners and stockholders of such Holder, or the estates and family members of any such
partners and retired partners and any trusts for the benefit of any of the foregoing persons shall be deemed to be a single “selling Holder,” and any pro rata reduction with respect to such “selling Holder” shall be based upon
the aggregate amount of Registrable Securities owned by all such related entities and individuals. 
 1.4
Form S-3 Registration. In case the Company shall receive from the Holders of at least twenty percent (20%) of the Registrable Securities (for purposes of this Section 1.4, the “Initiating Holders”) a written request or
requests that the Company effect a registration on Form S-3 and any related qualification or compliance with respect to all or a part of the Registrable Securities owned by such Holder or Holders, the Company shall: 

(a) promptly give written notice of the proposed registration, and any related qualification or compliance, to all other
Holders; and 
 (b) use all commercially reasonable efforts to effect, as soon as practicable, such
registration and all such qualifications and compliances as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of such Holders’ Registrable Securities as are specified in such request,
together with all or such portion of the Registrable Securities of any other Holders joining in such request as are specified in a written request given within fifteen (15) days after receipt of such written notice from the Company, provided,
however, that the Company shall not be obligated to effect any such registration, qualification or compliance, pursuant to this section 1.4: 
 (i) if Form S-3 is not available for such offering by the Holders; 
 (ii) if the Holders, together with the holders of any other securities of the Company entitled to inclusion in such registration, propose to sell Registrable Securities and such other securities (if any)
at an aggregate price to the public (net of any underwriters’ discounts or commissions) of less than $5,000,000; 
 (iii) if the Company shall furnish to Holders requesting a registration statement pursuant to this Section 1.4, a certificate signed by the Company’s Chief Executive Officer or Chairman of the
Board stating that in the good faith judgment of the Board of Directors of the Company, it would be seriously detrimental to the Company and its stockholders for such registration statement to be effected at such time, in which event the Company
shall have the right to defer such filing for a period of not more than ninety (90) days after receipt of the request of the Initiating Holders, provided that such right shall be exercised by the Company not more than once in any
twelve (12)-month period and provided further that the Company shall not register any securities for the account of itself or any other stockholder 

  
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during such ninety (90) day period (other than a registration relating solely to the sale of securities of participants in a Company stock plan, a registration relating to a corporate
reorganization or transaction under Rule 145 of the Act, a registration on any form that does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable
Securities, or a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered); 

(iv) if the Company has, within the twelve (12) month period preceding the date of such request, already effected
one registration on Form S-3 for the Holders pursuant to this Section 1.4; 
 (v) during the period
starting with the date sixty (60) days prior to the Company’s estimated date of filing of, and ending on the date one hundred eighty (180) days immediately following the effective date of, a Company-initiated registration subject to
Section 1.3 above (other than a registration relating solely to the sale of securities of participants in a Company stock plan, a registration relating to a corporate reorganization or transaction under Rule 145 of the Act, a registration
on any form that does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable Securities, or a registration in which the only Common Stock being registered
is Common Stock issuable upon conversion of debt securities that are also being registered), provided that the Company is actively employing in good faith reasonable efforts to cause such registration statement to become effective and that the
Company’s estimate of the date of filing such registration statement is made in good faith; or 
 (vi) in
any particular jurisdiction in which the Company would be required to qualify to do business or to execute a general consent to service of process in effecting such registration, qualification or compliance. 

(c) If the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an
underwriting, they shall so advise the Company as a part of their request made pursuant to this Section 1.4 and the Company shall include such information in the written notice referred to in Section 1.4(a). The provisions of
Section 1.2(b) shall be applicable to such request (with the substitution of Section 1.4 for references to Section 1.2). 
 (d) Subject to the foregoing, the Company shall file a registration statement covering the Registrable Securities and other securities so requested to be registered as soon as practicable after receipt of
the request or requests of the Initiating Holders. Registrations effected pursuant to this Section 1.4 shall not be counted as requests for registration effected pursuant to Sections 1.2. 

  
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 1.5 Obligations of the Company. Whenever required under this
Section 1 to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible: 
 (a) prepare and file with the SEC a registration statement with respect to such Registrable Securities and use all commercially reasonable efforts to cause such registration statement to become effective,
and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective for a period of up to one hundred twenty (120) days or, if earlier, until the distribution
contemplated in the Registration Statement has been completed; 
 (b) prepare and file with the SEC such
amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions of the Act with respect to the disposition of all securities covered
by such registration statement; 
 (c) furnish to the Holders such numbers of copies of a prospectus, including
a preliminary prospectus, in conformity with the requirements of the Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them; 

(d) use all commercially reasonable efforts to register and qualify the securities covered by such registration
statement under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably requested by the Holders, provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business
or to file a general consent to service of process in any such states or jurisdictions; 
 (e) in the event of
any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, subject to compliance with the terms of Section 1.9 herein, with the managing underwriter of such offering;

 (f) notify each Holder of Registrable Securities covered by such registration statement at any time when a
prospectus relating thereto is required to be delivered under the Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or
omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing; 

(g) cause all such Registrable Securities registered pursuant to this Section 1 to be listed on a national exchange
or trading system and on each securities exchange and trading system on which similar securities issued by the Company are then listed; 
 (h) provide a transfer agent and registrar for all Registrable Securities registered pursuant hereunder and a CUSIP number for all such Registrable Securities, in each case not later than the effective
date of such registration; and 
 (i) use commercially reasonable efforts to furnish, on the date that such
Registrable Securities are delivered to the underwriters for sale, if such securities are being sold through underwriters, (A) an opinion, dated as of such date, of the counsel representing the Company for the purposes of such registration, in
form and substance as is customarily given to underwriters in an underwritten public offering, addressed to the 

  
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underwriters, if any, and (B) a letter, dated as of such date, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent
certified public accountants to underwriters in an underwritten public offering addressed to the underwriters. 

Notwithstanding the provisions of this Section 1, the Company shall be entitled to postpone or suspend, for a reasonable period of
time, the filing, effectiveness or use of, or trading under, any registration statement if the Company shall determine that any such filing or the sale of any securities pursuant to such registration statement would: 

(i) in the good faith judgment of the Board of Directors of the Company, materially impede, delay or interfere with any
material pending or proposed financing, acquisition, corporate reorganization or other similar transaction involving the Company for which the Board of Directors of the Company has authorized negotiations; 

(ii) in the good faith judgment of the Board of Directors of the Company, materially adversely impair the consummation
of any pending or proposed material offering or sale of any class of securities by the Company; or 
 (iii) in
the good faith judgment of the Board of Directors of the Company, require disclosure of material nonpublic information that, if disclosed at such time, would be materially harmful to the interests of the Company and its stockholders;
provided, however, that during any such period all executive officers and directors of the Company are also prohibited from selling securities of the Company (or any security of any of the Company’s subsidiaries or affiliates).

 In the event of the suspension of effectiveness of any registration statement pursuant to this
Section 1.5, the applicable time period during which such registration statement is to remain effective shall be extended by that number of days equal to the number of days during which the effectiveness of such registration statement was
suspended. 
 1.6 Information from Holder. It shall be a condition precedent to the obligations of the
Company to take any action pursuant to this Section 1 with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and
the intended method of disposition of such securities as shall be reasonably required to effect the registration of such Holder’s Registrable Securities. 
 1.7 Expenses of Registration. All expenses other than underwriting discounts and commissions and stock transfer taxes incurred in connection with registrations, filings or qualifications pursuant
to Sections 1.2, 1.3 and 1.4, including (without limitation) all registration, filing and qualification fees, printers’ and accounting fees, fees and disbursements of counsel for the Company and the reasonable fees and disbursements of one
counsel for the selling Holders shall be borne by the Company. Notwithstanding the foregoing, the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to Section 1.2 or Section 1.4 if the
registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered (in which case all 

  
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participating Holders shall bear such expenses pro rata based upon the number of Registrable Securities that were to be included in the withdrawn registration), unless, in the case of a
registration requested under Section 1.2, the Holders of a majority of the Registrable Securities agree to forfeit their right to one demand registration pursuant to Section 1.2 and provided, however, that if at the time of such
withdrawal, the Holders have learned of a material adverse change in the condition, business, or prospects of the Company from that known to the Holders at the time of their request and have withdrawn the request with reasonable promptness following
disclosure by the Company of such material adverse change, then the Holders shall not be required to pay any of such expenses and shall retain their rights pursuant to Section 1.2 or 1.4. 

1.8 Delay of Registration. No Holder shall have any right to obtain or seek an injunction restraining or otherwise
delaying any such registration as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 1. 
 1.9 Indemnification. In the event any Registrable Securities are included in a registration statement under this Section 1: 

(a) To the extent permitted by law, the Company will indemnify and hold harmless each Holder, the partners, officers,
directors and stockholders of each Holder, legal counsel and accountants for each Holder, any underwriter (as defined in the Act) for such Holder and each person, if any, who controls such Holder or underwriter within the meaning of the Act or the
1934 Act, against any losses, claims, damages or liabilities (joint or several) to which they may become subject under the Act, the 1934 Act, any state securities laws or any rule or regulation promulgated under the Act, insofar as such losses,
claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively a “Violation”): (i) any untrue statement or alleged untrue statement
of a material fact contained in such registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material
fact required to be stated therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Act, the 1934 Act, any state securities laws or any rule or regulation promulgated
under the Act; the 1934 Act or any state securities laws, and the Company will reimburse each such Holder, underwriter, controlling person or other aforementioned person for any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action as such expenses are incurred; provided, however, that the indemnity agreement contained in this subsection l.9(a) shall not apply to amounts paid in settlement of any
such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such case for any such loss, claim, damage,
liability or action to the extent that it arises out of or is based upon a Violation that occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by any such Holder,
underwriter, controlling person or other aforementioned person; provided further, however, that the foregoing indemnity agreement with respect to any preliminary prospectus shall not inure to the benefit of any Holder or underwriter or other
aforementioned person, or any person controlling such Holder 

  
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or underwriter, from whom the person asserting any such losses, claims, damages or liabilities purchased shares in the offering, if a copy of the most current prospectus was not sent or given by
or on behalf of such Holder or underwriter or other aforementioned person to such person, if required by law so to have been delivered, at or prior to the written confirmation of the sale of the shares to such person, and if the prospectus (as so
amended or supplemented) would have cured the defect giving rise to such loss, claim, damage or liability. 

(b) To the extent permitted by law, each selling Holder will indemnify and hold harmless the Company, each of its
directors, each of its officers who has signed the registration statement, each person, if any, who controls the Company within the meaning of the Act, legal counsel and accountants for the Company, any underwriter, any other Holder selling
securities in such registration statement and any controlling person of any such underwriter or other Holder, against any losses, claims, damages or liabilities (joint or several) to which any of the foregoing persons may become subject, under the
Act, the 1934 Act, any state securities laws or any rule or regulation promulgated under the Act, the 1934 Act or any state securities laws, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are
based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Holder expressly for use in connection with such registration; and
each such Holder will reimburse any person intended to be indemnified pursuant to this subsection l.9(b) for any legal or other expenses reasonably incurred by such person in connection with investigating or defending any such loss, claim, damage,
liability or action as such expenses are incurred; provided, however, that the indemnity agreement contained in this subsection l.9(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Holder (which consent shall not be unreasonably withheld), and provided that in no event shall any indemnity under this subsection l.9(b) exceed the net proceeds from the offering received by
such Holder. 
 (c) Promptly after receipt by an indemnified party under this Section 1.9 of notice of the
commencement of any action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 1.9, deliver to the indemnifying party a written notice
of the commencement thereof and the indemnifying party shall have the right to participate in and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with
counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties that may be represented without conflict by one counsel) shall have the right to retain one separate counsel,
with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such
indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to its ability to
defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 1.9, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may
have to any indemnified party otherwise than under this Section 1.9. 

  
 11 

 (d) If the indemnification provided for in this Section 1.9 is held by
a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage or expense referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder,
shall contribute to the amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and
of the indemnified party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage or expense, as well as any other relevant equitable considerations; provided, however, that no contribution by
any Holder, when combined with any amounts paid by such Holder pursuant to Section 1.9(b), shall exceed the net proceeds from the offering received by such Holder. The relative fault of the indemnifying party and of the indemnified party shall
be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and
the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission. 
 (e) Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public
offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control. 
 (f) The obligations of the Company and Holders under this Section 1.9 shall survive the completion of any offering of Registrable Securities in a registration statement under this Section 1, and
otherwise. 
 1.10 Reports Under the 1934 Act. With a view to making available to the Holders the
benefits of Rule 144 and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a registration on Form S-3, the Company agrees to:

 (a) make and keep public information available, as those terms are understood and defined in Rule 144,
at all times after the effective date of the Initial Offering; 
 (b) file with the SEC in a timely manner all
reports and other documents required of the Company under the Act and the 1934 Act; and 
 (c) furnish to any
Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) a written statement by the Company that it has complied with the reporting requirements of Rule 144 (at any time after ninety (90) days after
the effective date of the first registration statement filed by the Company), the Act and the 1934 Act (at any time after it has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold
pursuant to Form S-3 (at any time after it so qualifies), (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may
be reasonably requested in availing any Holder of any rule or regulation of the SEC that permits the selling of any such securities without registration or pursuant to such form. 

  
 12 

 1.11 Assignment of Registration Rights. The rights to cause the
Company to register Registrable Securities pursuant to this Section 1 may be assigned (but only with all related obligations) by a Holder to a transferee or assignee of such securities that (i) is a subsidiary, parent, partner, limited
partner, retired partner, Affiliate, member, retired member or stockholder of a Holder, (ii) is a Holder’s family member or trust for the benefit of an individual Holder, or (iii) after such assignment or transfer, holds all of such
transferring Holder’s shares or at least 500,000 shares of Registrable Securities (subject to appropriate adjustment for stock splits, stock dividends, combinations and other recapitalizations), provided: (a) the Company is, within a
reasonable time after such transfer, furnished with written notice of the name and address of such transferee or assignee and the securities with respect to which such registration rights are being assigned; (b) such transferee or assignee
agrees in writing to be bound by and subject to the terms and conditions of this Agreement, including, without limitation, the provisions of Section 1.13 below; and (c) such assignment shall be effective only if immediately following such
transfer the further disposition of such securities by the transferee or assignee is restricted under the Act. 

1.12 Limitations on Subsequent Registration Rights. From and after the date of this Agreement, the Company shall
not, without the prior written consent of the Holders of a majority of the Registrable Securities, enter into any agreement with any holder or prospective holder of any securities of the Company that would allow such holder or prospective holder
(a) to include such securities in any registration filed under Section 1.2, Section 1.3 or Section 1.4 hereof, unless under the terms of such agreement, such holder or prospective holder may include such securities in any such
registration only to the extent that the inclusion of such securities will not reduce the amount of the Registrable Securities of the Holders that are included or (b) to demand registration of their securities. 

1.13 “Market Stand-Off” Agreement. 

(a) Each Holder hereby agrees that it will not, without the prior written consent of the managing underwriter, during the
period commencing on the date of the final prospectus relating to the Company’s Initial Offering and ending on the date specified by the Company and the managing underwriter (such period not to exceed one hundred eighty (l80) days or such
longer period as may be requested by the Company or the managing underwriter (but in no event shall such longer period exceed the number of days deemed necessary in good faith to allow compliance with NASD Rule 2711 or any successor rule thereto))
(i) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any
shares of Common Stock or any securities convertible into or exercisable or exchangeable for Common Stock held immediately prior to the effectiveness of the Registration Statement for such offering, or (ii) enter into any swap or other
arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Common Stock, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock
or such other securities, in cash or otherwise. The foregoing provisions of this Section 1.13 shall apply only to the Company’s initial public offering of equity 

  
 13 

 
securities, shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, and shall only be applicable to the Holders if all officers and directors and
greater than one percent (1%) stockholders of the Company enter into similar agreements. The underwriters in connection with the Company’s Initial Offering are intended third party beneficiaries of this Section 1.13 and shall have the
right, power and authority to enforce the provisions hereof as though they were a party hereto. Each Holder further agrees to execute such agreements as may be reasonably requested by the underwriters in the Company’s Initial Offering that are
consistent with this Section 1.13 or that are necessary to give further effect thereto. Other than with respect to the Initial Offering and for hardship cases involving a waiver or termination with respect to no more than 25,000 shares an any
individual instance and 100,000 shares in the aggregate, any discretionary waiver or termination of the restrictions of any or all of such agreements by the Company or the underwriters shall apply to all Holders subject to such agreements pro rata
based on the number of shares subject to such agreements. 
 In order to enforce the foregoing covenant, the Company may impose
stop-transfer instructions with respect to the Registrable Securities of each Holder (and the shares or securities of every other person subject to the foregoing restriction) until the end of such period. 

(b) Each Holder agrees that a legend reading substantially as follows shall be placed on all certificates representing
all Registrable Securities of each Holder (and the shares or securities of every other person subject to the restriction contained in this Section 1.13): 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A LOCK-UP PERIOD AFTER THE EFFECTIVE DATE OF THE ISSUER’S REGISTRATION STATEMENT FILED UNDER THE ACT, AS AMENDED, WITH RESPECT TO THE
ISSUER’S INITIAL PUBLIC OFFERING OF ITS COMMON STOCK, AS SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL HOLDER OF THESE SECURITIES, A COPY OF WHICH MAY BE OBTAINED AT THE ISSUER’S PRINCIPAL OFFICE. SUCH LOCK-UP PERIOD IS
BINDING ON TRANSFEREES OF THESE SHARES. 
 1.14 Termination of Registration Rights. No Holder shall be
entitled to exercise any right provided for in this Section 1 (a) after five (5) years following the consummation of the Initial Offering, (b) as to any Holder, such earlier time after the Initial Offering at which such
Holder holds one percent (1%) or less of the Company’s outstanding Common Stock and all Registrable Securities held by such Holder (together with any affiliate of the Holder with whom such Holder must aggregate its sales under
Rule 144) can be sold in any three (3)-month period without registration in compliance with Rule 144. 
 2. Miscellaneous. 
 2.1 Successors and Assigns.
Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties (including transferees of any shares of Registrable Securities).
Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement. 

  
 14 

 2.2 Governing Law. This Agreement shall be governed by and construed
under the laws of the State of California as applied to agreements among California residents entered into and to be performed entirely within California. 
 2.3 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 2.4 Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience
only and are not to be considered in construing or interpreting this Agreement. 
 2.5 Notices. All
notices and other communications given or made pursuant hereto shall be in writing and shall be deemed effectively given: (i) upon personal delivery to the party to be notified, (ii) when sent by confirmed facsimile if sent during normal
business hours of the recipient; if not, then on the next business day, (iii) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (iv) one (1) day after deposit
with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the respective parties at the addresses set forth on the signature pages attached hereto (or at
such other addresses as shall be specified by notice given in accordance with this Section 2.5). 
 2.6
Expenses. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any
other relief to which such party may be entitled. 
 2.7 Entire Agreement: Amendments and Waivers. This
Agreement (including the Exhibits hereto, if any) constitutes the full and entire understanding and agreement among the parties with regard to the subjects hereof and thereof. Any term of this Agreement may be amended and the observance of any term
of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of the Company and the holders of 80% of the Registrable Securities. Any amendment or waiver
effected in accordance with this paragraph shall be binding upon each holder of any Registrable Securities, each future holder of all such Registrable Securities, and the Company. 

2.8 Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law,
such provision(s) shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision(s) were so excluded and shall be enforceable in accordance with its terms. 

2.9 Aggregation of Stock. All shares of Registrable Securities held or acquired by affiliated entities (including
affiliated venture capital funds) or persons shall be aggregated together for the purpose of determining the availability of any rights under this Agreement. 

  
 15 

 2.10 Amendment and Restatement of Prior Agreement. Upon the
effectiveness of this Agreement, the Prior Agreement shall be amended and restated in its entirety and shall be of no further force and effect. 

  
 16 

 IN WITNESS WHEREOF, the parties have executed this Amended and Restated
Investors’ Rights Agreement as of the date first above written. 
  

			
	 IMPERVA, INC.

		
	 By:
	 	 /s/ Shlomo Kramer

		
	 Name:
	 	 Shlomo Kramer

		
	 Title:
	 	 President and Chief Executive
Officer

 
			
		
	 Address:
	 	 3400 Bridge Parkway, Suite 200
 Redwood Shores, CA 94065

  

  

SIGNATURE PAGE TO IMPERVA, INC. 

AMENDED AND RESTATED INVESTORS’ RIGHTS
AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Amended and Restated
Investors’ Rights Agreement as of the date first above written. 
  

			
	INVESTORS:
	
	MERITECH CAPITAL PARTNERS III L.P.
		
	By:	 	 Meritech Capital Associates III L.L.C.
 its General Partner

		
	By:	 	 Meritech Management Associates III L.L.C.
 a managing member

		
	By:	 	 /s/ Rob Ward

		 	Rob Ward, a managing member
	
	MERITECH CAPITAL AFFILIATES III L.P.
		
	By:	 	 Meritech Capital Associates III L.L.C.
 its General Partner

		
	By:	 	 Meritech Management Associates III L.L.C.
 a managing member

		
	By:	 	 /s/ Rob Ward

		 	Rob Ward, a managing member

 
			
		
	Address:	 	245 Lytton Avenue, Suite 350
		 	Palo Alto, CA 94301
		
	Copy to:	 	Latham & Watkins LLP
		 	140 Scott Drive
		 	Menlo Park, CA 94025
		 	Attention Mark V. Roeder, Esq.

  

  

SIGNATURE PAGE TO IMPERVA, INC. 

AMENDED AND RESTATED INVESTORS’ RIGHTS
AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Amended and Restated
Investors’ Rights Agreement as of the date first above written. 
  

			
	INVESTORS:
	
	GREYLOCK XII LIMITED PARTNERSHIP
		
	By:	 	Greylock XII GP LLC, its General Partner
		
	By:	 	 /s/ Donald A. Sullivan

		 	Donald A. Sullivan
		
	Title:	 	Administrative Partner
	
	GREYLOCK XII-A LIMITED PARTNERSHIP
		
	By:	 	Greylock XII GP LLC, its General Partner
		
	By:	 	 /s/ Donald A. Sullivan

		 	Donald A. Sullivan
		
	Title:	 	Administrative Partner
	
	GREYLOCK XII PRINCIPALS LLC
		
	By:	 	Greylock Management Corporation, Sole
	Member
		
	By:	 	 /s/ Donald A. Sullivan

		 	Donald A. Sullivan
		
	Title:	 	Treasurer

  

SIGNATURE PAGE TO IMPERVA, INC. 

AMENDED AND RESTATED INVESTORS’ RIGHTS
AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Amended and Restated
Investors’ Rights Agreement as of the date first above written. 
  

			
	INVESTORS:
	
	ACCEL VIII L.P.
		
	By:	 	Accel VIII Associates L.L.C.
	Its General Partner
		
	By:	 	 /s/ Richard Zamboldi

		 	Managing Member
	
	ACCEL INTERNET FUND IV L.P.
	By:	 	Accel VIII Associates L.L.C.
	Its General Partner
		
	By:	 	 /s/ Richard Zamboldi

		 	Managing Member
	
	ACCEL INVESTORS 2002 L.L.C.
		
	By:	 	 /s/ Richard Zamboldi

		 	Managing Member

 
			
		
	Address:	 	Accel Partners
		 	428 University Avenue
		 	Palo Alto, CA 94301
		 	(650) 614-4800 - Tel.
		 	(650) 614-4880 – Fax

  

SIGNATURE PAGE TO IMPERVA, INC. 

AMENDED AND RESTATED INVESTORS’ RIGHTS
AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Amended and Restated
Investors’ Rights Agreement as of the date first above written. 
  

			
	 INVESTORS:

	
	 /s/ Shlomo Kramer

	 Shlomo Kramer

 
			
		
	 Address:
	 	  

		 	  

			
	
	 Hapri Limited

		
	 By:
	 	 /s/ Shlomo Kramer

	 Name:
	 	 Shlomo Kramer

	 Title:
	 	
Director

 

			
		
	 Address:
	 	  

		 	  

  

  

SIGNATURE PAGE TO IMPERVA, INC. 

AMENDED AND RESTATED INVESTORS’ RIGHTS
AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Amended and Restated
Investors’ Rights Agreement as of the date first above written. 
  

			
	 INVESTORS:

	
	 U.S. VENTURE PARTNERS VIII, L.P.

	 USVP VIII AFFILIATES FUND, L.P.

	 USVP ENTREPRENEUR PARTNERS VIII-A, L.P.

	 USVP ENTREPRENEUR PARTNERS VIII-B, L.P.

	 By Presidio Management Group VIII, L.L.C.

	 The General Partner of Each

		
	 By:
	 	 /s/ Michael P. Maher

		 	 Michael P. Maher, Attorney-In-Fact

	
	 Address:

	 2735 Sand Hill Road

	 Menlo Park CA 94025

	 Facsimile No.: (650) 854-3018

	 Attn: Chief Financial Officer

	 Email: deals@usvp.com

  

SIGNATURE PAGE TO IMPERVA, INC. 

AMENDED AND RESTATED INVESTORS’ RIGHTS
AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Amended and Restated
Investors’ Rights Agreement as of the date first above written. 
  

			
	 INVESTORS:

	
	 VENROCK ASSOCIATES,
 by a General Partner

	
	 VENROCK ASSOCIATES III, L.P.,
 by its General Partner,

	 Venrock Management III LLC

 
 VENROCK ENTREPRENEURS FUND III,
L.P.,

	 by its General Partner,
 VEF Management III LLC

		
	 By:
	 	 /s/ David L. Stepp

		 	 Authorized Signatory

 
			
		
	 Name:
	 	 David L. Stepp

  

  

SIGNATURE PAGE TO IMPERVA, INC. 

AMENDED AND RESTATED INVESTORS’ RIGHTS
AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Amended and Restated
Investors’ Rights Agreement as of the date first above written. 
  

			
	 INVESTORS:

	
	 THE BOARD OF TRUSTEES OF THE LELAND STANFORD JUNIOR UNIVERSITY (Daper1)

		
	 By:
	 	 /s/ Martina Poquet

		 	 Martina Poquet, Managing Director –

		 	 Separate Investments

	
	 THE BOARD OF TRUSTEES OF THE LELAND STANFORD JUNIOR UNIVERSITY (SEVF2)

		
	 By:
	 	 /s/ Martina Poquet

		 	 Martina Poquet, Managing Director –

		 	 Separate Investments

  

SIGNATURE PAGE TO IMPERVA, INC. 

AMENDED AND RESTATED INVESTORS’ RIGHTS
AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Amended and Restated
Investors’ Rights Agreement as of the date first above written. 
  

			
	 INVESTORS:

	
	 SVB FINANCIAL GROUP

		
	 By:
	 	 /s/ Michael Kruse

		
	 Name:
	 	 Michael Kruse

		
	 Title:
	 	 Treasurer

  

  

SIGNATURE PAGE TO IMPERVA, INC. 

AMENDED AND RESTATED INVESTORS’ RIGHTS
AGREEMENT 

 SCHEDULE A 

INVESTORS 
 Accel VIII
L.P. 
 Accel Internet Fund IV L.P. 

Accel Investors 2002 L.L.C. 
 Gold Hill Venture
Lending 03, LP 
 Greylock XII Limited Partnership 
 Greylock XII-A Limited Partnership 
 Greylock XII Principals LLC 

SVB Financial Group 
 Shlomo Kramer 

Hapri Limited 
 U.S. Venture Partners VIII,
L.P. 
 USVP VIII Affiliates Fund, L.P. 
 USVP Entrepreneur Partners VIII-A, L.P. 
 USVP Entrepreneur Partners VIII-B, L.P. 

Venrock Associates 
 Venrock Associates III,
L.P. 
 Venrock Entrepreneurs Fund III, L.P. 
 The Board of Trustees of the Leland Stanford Junior University (Daper1) 
 The Board of Trustees of
the Leland Stanford Junior University (SEVF2) 
 Meritech Capital Partners III L.P. 
 Meritech Capital Affiliates III L.P.Subconcession Contract for the Exploitation of Games Fortune and Chance or Other

 EXHIBIT 10.1 
 Translation 
 SUBCONCESSION CONTRACT FOR THE EXPLOITATION OF GAMES OF

 FORTUNE AND CHANCE OR OTHER GAMES IN CASINO IN THE SPECIAL 

ADMINISTRATIVE REGION OF MACAU 
 Between 
 Sociedade de Jogos de Macau, SA,
hereinafter designated concessionaire, with head office in Macau, at Avenida de Lisboa, numbers 2-4, Hotel Lisboa,
9th floor, registered with the Commercial Registry Office
of Macau under the number 15056, represented in this contract by its director Ho Hung Sun, Stanley also known as Stanley Hung Sun Ho or Stanley Ho, widower, holder of the Macau Resident Identity Card n° 1/260888/1, issued 08/09/1999, and Living
in Macau, at Estrada da Penha n° 15, with powers for the act, 
 And 

MGM Grand Paradise, SA, hereinafter designated subconcessionaire, with head office in Macau, at
Avenida da Praia Grande n° 759, 5th floor, registered
with the Commercial Registry Office of Macau under the number 18972, represented in this contract by its directors Ho, Pansy Catilina Chiu King, also known as Pansy Ho, married, holder of the Macau Permanent Resident Identity Card n° 1265941(3),
issued on 14/07/2003 and living in Macau at Avenida da Praia Grande n° 759, 5th floor, and Gary Neil Jacobs, married, holder of the United States of America Passport n° 036187011, issued on 29/04/1997, and living at 3600 Las Vegas Boulevard South, Las Vegas, Nevada 89109, United
States of America, with powers for the act, 
 And bearing in mind that: - 

The Special Administrative Region of Macau granted the concessionaire a concession for the
exploitation of the games of fortune and chance and other games in casino, through the execution of an administrative concession contract for the exploitation of the games of fortune and chance and other games in casino in the Special Administrative
Region of Macau on 28th March 2002, altered on
19th April 2005; 

 

 Sociedade de Jogos de Macau S. A. was authorized, under the terms of the
number one of the clause 75 of the concession contract executed between the Special Administrative Region of Macau and the concessionaire, to execute this subconcession contract; 

Is accepted and reciprocally agreed this administrative subconcession contract for the exploitation of the games of
fortune and chance and other games in casino that will be governed by the following clauses. 
 CHAPTER I 

Object, type and period of the subconcession 
 Clause 1 
 Object of the subconcession 

One. The subconcession granted by this subconcession contract has as object the exploitation of games of fortune
and chance or other games in casino in the Special Administrative Region of Macau of the People’s Republic of China, hereinafter designated Special Administrative Region of Macau. 

Two. The subconcession granted by this subconcession contract has as object the exploitation of games of fortune
and chance or other games in casino granted to the concessionaire and is, as to that concession, partial, being the concessionaire exonerated of the obligations imputed to the subconcessionaire by and under the terms of this subconcession contract.

 Three. The subconcession does not include the exploitation of: - 

1) Mutual betting; 
 2) Operations offered to the public, with exception of the provisions of number 7 article 3 of the Law n° 16/2001; 

3) Interactive games; 
 4) Games of fortune and chance or any other type of game, betting or operations on a ship or aircraft, with exception of the provisions of paragraph 1) number 3 and number 4 of article 5 of the Law number
16/2001. 

  
 2 

 Clause 2 
 Objectives of the subconcession 
 The subconcessionaire
pledges to: - 
 1) Ensure the adequate exploitation and operation of the games of fortune and chance or other
games in casino. 
 2) To employ in the management and operation of the games of fortune and chance or other
games in casino only persons competent to carry out that duties and assume that responsibilities; 
 3) To
exploit and operate the games of fortune and chance or other games in casino in a fair and honest manner and free from criminal influence; and 
 4) To safeguard and protect the interests of the Special Administrative Region of Macau in the taxation resulting from running its casinos and other gambling areas. 

Clause 3 

Applicable law and jurisdiction 
 One. Exclusively the laws of the Special Administrative Region of Macau govern this subconcession contract. 
 Two. The concessionaire and the subconcessionaire renounce to litigate between themselves, or against the Special Administrative Region of Macau, de per si, conjunctly or with others, in any
court outside the Special Administrative Region of Macau as they recognize and submit to the exclusive jurisdiction of the Special Administrative Region of Macau courts to resolve any eventual litigations or conflicts of interest. 

Clause 4 
 Observance of the Special Administrative Region of Macau legislation 
 The concessionaire and the subconcessionaire pledge to abide by the legislation applicable in the Special Administrative Region of Macau, renouncing to invoke any legislation alien to the Special
Administrative Region of Macau, namely to exempt themselves from the fulfillment of the obligations or conducts to which are bound or impending on them. 

  
 3 

 Clause Five 
 Participation in the exploitation of games of fortune and chance 
 or
other games in casinos in other jurisdictions 
 One. The subconcessionaire pledges to notify the
Government of the Special Administrative Region of Macau, hereinafter the Government, about its participation, and immediately afterwards, the participation of any of its directors, its controlling shareholder, including the last controlling
shareholder, or any corporate participation corresponding directly or indirectly to 10% or more of its capital stock, in the process for licensing or concession of an exploitation of games of fortune and chance or other games in casino, and as well
in the exploitation of games of fortune and chance or other games in casino, even if merely through a management contract, in any other jurisdiction. 
 Two. For effects of the previous number, the subconcessionaire pledges, according to the case, to submit and provide to the Government or endeavor to obtain to submit or provide to the Government
any documents, information or data it has been asked for the effect, except those that by legal provision, are confidential. 

Clause 6 

Concessions regime 
 One. This subconcession contract is ruled by the concessions regime contemplated in the legal framing of the legal system that governs the exploitation of the games of fortune and chance or other
games in casino, approved by the Law number 16/2001, the Administrative Regulation number 26/2001, the rules for the practice of games of fortune and chance, namely those contemplated in article 55 of the Law number 16/2001, and any other
complementary regulation of the referred Law number 16/2001, and as well the concession contract executed between the Special Administrative Region of Macau and the concessionaire. 

Two. Without prejudice of the obligations stipulated in this subconcession contract, the subconcessionaire
undertakes also with the Government to comply with any obligations similar to those that at any time will be stipulated to the concessionaires for the exploitation of games of fortune and chance or other games in casino within the legal framing
mentioned in the previous number. 

  
 4 

 Clause 7 
 Exploitation of the subconcession 
 The subconcessionaire
pledges to exploit the subconcession in the terms and conditions stipulated in this subconcession contract. 
 Clause 8

 Subconcession period 
 One. The term of the subconcession granted by this contract ends on the thirty-first day of March in the year two thousand twenty. 

Two. The ruling of the previous number does not hinder the application of the clauses of this subconcession
contract that remain valid after the term of the subconcession. 
 CHAPTER II 

Locations for the casinos exploitation and operation 
 and other gambling areas 
 Clause 9 

Locations for the subconcession exploitation 

One. In the exercise of its activity, the subconcessionaire can only exploit games of fortune and chance or other
games in casino in the casinos and other gambling areas previously authorized and classified by the Government. 

Two. The allotment of any other location to exploit the subconcession depends from the Government authorization.

 Clause 10 
 Type of games, tables and electrical and mechanical machines games 
 One. The subconcessionaire is authorized to exploit all types of games the concessionaire is licensed to operate, and other type of games to be authorized by dispatch of the Secretary for Economy
and Finances, requested by the subconcessionaire and after a favorable opinion of Direcçāo de Inspecçāo e Coordenaçāo de Jogos [Gaming Authority], hereinafter designated DICJ, whose rules for
its practice will be approved by dispatch of the Secretary for Economy and Finances, under DICJ proposal. The 

  
 5 

 
subconcessionaire is also authorized to operate, under the terms of the law, any electrical or mechanical machines games, including slot machines. 

Two. The subconcessionaire pledges to submit annually to DICJ, during December, a list stating the number of
tables and electrical or mechanical machines, including slot machines, it intends to exploit during the following year, and as well their location. 
 Three. The number of tables and electrical or mechanical machines, including slot machines, to be exploited by the subconcessionaire can be altered by previous notification to DICJ by the
subconcessionaire. 
 Four. The subconcessionaire pledges to maintain and exploit in its casinos a
minimal variety of games, according to DICJ instructions. 
 Clause 11 

Continuous operation of the casinos 
 One. The subconcessionaire pledges to have the casinos open every day of the year. 
 Two. Without prejudice of the previous number provisions, the subconcessionaire can establish a daily period for the casinos and their related activities to be opened to the public. 

Three. The schedule of a daily period for the casinos and their related activities to be opened to the public must
be notified previously to the Government and be affixed at the casinos entrance. 
 Four. The alteration
of the daily opening of the casinos and their related activities to the public must be notified to the Government with a minimal antecedence of three days. 
 Clause 12 
 Suspension of the operation in casino and other gambling
areas 
 One. The subconcessionaire pledges to request the Government, with a minimal antecedence of
three days, upon presentation of reasonable grounds, authorization to halter the operations of one or more casinos and other gambling areas, for a period of one or more days. 

  
 6 

 Two. The authorization mentioned in the previous number is waived in
urgent situations or in cases of force majeure, namely emerging from a serious accident, catastrophe or natural calamity, causing serious risk to the persons safety, and in this case the subconcessionaire must notify the Government and the
concessionaire as soon as possible, about the suspension of the casino or other gambling areas operation. 
 Clause 13

 Electronic surveillance and control equipment 

One. The subconcessionaire pledges to install in the casinos and other gambling areas, an electronic surveillance
and control equipment of international high quality approved by DICJ. For the effect, the subconcessionaire must send a request in writing to that Department, identifying the equipment to be installed, attaching the respective technical data.
Notwithstanding, DICJ can, at anytime, request the presentation of specimens or samples of the referred equipment. 
 Two. The subconcessionaire pledges also to install electronic surveillance and control equipment, approved by DICJ, in other areas near the casinos and other gambling areas or leading to or
connecting them, whenever requested for such by that Department. 
 Three. The subconcessionaire pledges
to install new electronic surveillance and control equipment, approved by DICJ, whenever reasonably asked for such by that Department, namely to maintain the international high quality mentioned in number One. 

Four. The subconcessionaire pledges to notify the competent public authorities as soon as possible of any acts or
facts constituting crime or administrative infraction of which is aware and as well any illegal acts or facts it may consider serious. 
 CHAPTER III 
 Subconcessionaire company 

Clause 14 

Corporate purpose, head office and incorporation 

One. The subconcessionaire pledges to have as exclusive corporate purpose the exploitation of games of fortune and
chance or other games in casino. 

  
 7 

 Two. The subconcessionaire corporate purpose can, by authorization of
the Government, include activities correlative to the exploitation of games of fortune and chance or other games in casino. 
 Three. The subconcessionaire pledges to maintain its head office in the Special Administrative Region of Macau and to be incorporated as a joint stock company. 

Clause 15 

Capital stock and shares 
 One. The subconcessionaire pledges to maintain a capital stock in an amount no less than MOP$200,000,000.00 (two hundred million Patacas). 

Two. The subconcessionaire pledges to increase its capital stock if and when ordered by the Chief Executive if
supervening circumstances so justifies. 
 Three. Only nominal shares represent the totality of the
capital stock. 
 Four. The increase of the subconcessionaire capital stock by public subscription
requires the Government authorization. 
 Five. The subconcessionaire issue of preferential shares
requires the Government authorization. 
 Six. Without prejudice of the previous number, the creation or
issue of types or category of shares representative of the subconcessionaire capital stock, and also their transformation, require the Government authorization. 

Seven. The subconcessionaire pledges to ensure that the totality of the capital stock of the subconcessionaire
shareholders that are companies, and the capital stock of the holders of their corporate participations that are companies, and so on until the last holders of the corporate participations, whether individuals or companies, is represented
exclusively by nominal shares, except companies that are listed in stock exchanges in what refers to the shares dealt there. 

Clause 16 

Transfer and encumbrance of shares 
 One. The transfer or encumbrance inter vivos, at whatever title, of the ownership or other rights on the shares representative of the subconcessionaire capital stock and as well any acts
involving the assignment of the voting right or other corporate rights to any other person than its holder, require the Government authorization. 

  
 8 

 Two. In the case mentioned in the previous number, the
subconcessionaire is bound to refuse the registration and to not recognize the quality of shareholder to any entity that obtains or holds shares representative of its capital stock in violation of this subconcession contract or the law and to not do
any act that implicitly or explicitly recognizes any effect to the transfer or encumbrance inter vivos or operation mentioned in the previous number. 
 Three. The transfer mortis causa of the ownership or other rights on the shares representative of the subconcessionaire capital stock must be notified to the Government as soon as possible;
the subconcessionaire pledges at the same time to ensure the transfer is registered in its shares registration book. 
 Four. After securing the authorization mentioned in number One, the holder of the ownership or other rights on the shares representative of the subconcessionaire capital stock when transferring or
encumbering or doing an act involving the assignment to others of the voting right or other corporate rights will notify the subconcessionaire immediately which is bound to notify DICJ within thirty days after the registration in the shares book or
an equivalent formality, sending a copy of the documents that formalize that legal business and providing detailed information on any terms and conditions established. 

Five. The subconcessionaire pledges to request the Government authorization for the transfer inter vivos,
at whatever title, of the ownership or any other rights on the corporate participations of the holders of corporate participations representative of the capital stock of the subconcessionaire shareholders, being such holders individuals or
companies, and the capital stock of the holders of corporate participations of those that are companies, being such holders individuals or companies, and so on until the last holders of the corporate participations, being individuals or companies,
when that corporate participations correspond, directly or indirectly, to 5% or more of the subconcessionaire capital stock, except companies that are listed in stock exchanges in what refers to the shares dealt there. 

Six. The subconcessionaire must notify the Government as soon as possible after having knowledge of it, about the
transfer mortis causa of the ownership or other rights on corporate participations of the holders of 5% or more of corporate participations representative of the capital stock of the subconcessionaire shareholders, being such holders
individuals or companies, and the capital stock of the holders of 5% 

  
 9 

 
or more of corporate participations of those that are companies, being such holders individuals or companies, and so on until the last holders of the corporate participations, whether individuals
or companies. 
 Seven. The subconcessionaire pledges also to notify the Government as soon as having
knowledge of it, of the encumbrance at whatever title of corporate participations representative of the capital stock of its shareholders, and corporate participations held by holders of corporate participations of that shareholders, and so on until
the corporate participations of the last holders when that corporate participations correspond indirectly to 5% or more of the subconcessionaire capital stock, except the corporate participations representative of the capital stock of companies that
are listed in stock exchanges in what refers to the shares dealt there. 
 Eight. The previous number
applies also to any acts involving the assignment of the voting right or other corporate rights to another person than their holder, except the companies that are listed in stock exchanges in what refers to the shares dealt there. 

Nine. The stipulated in number four applies to the transfer at whatever title of the ownership of other right on
the corporate participations referred in number five with the necessary adjustments. 
 Ten. In case of a
controlling shareholder of the subconcessionaire not wanting to continue to be the latter shareholder due to having received written instructions on that regard from an agency governing the exploitation of the games of fortune and chance or other
games in casino from another jurisdiction in which is concessionaire or licensed to exploit games of fortune and chance and other games in casino, or in which is controlling shareholder of a concessionaire or licensed company to exploit games of
fortune and chance and other games in casino, the Government, if considering that such written instructions arise from acts not imputable to the subconcessionaire or to the controlling shareholder in question, can authorize that controlling
shareholder to transfer the ownership of the corporate participation it holds in the subconcessionaire, without prejudice of the need to obtain consent from the Government for the purchase of that participation by others. 

Clause 17 

Issue of shares 

  
 10 

 The subconcessionaire shall obtain the Government authorization prior to
issue shares. 
 Clause 18 
 Listing in the stock exchange 
 One. The
subconcessionaire or a company in which is a controlling shareholder cannot be listed in the stock exchange without the Government authorization. 
 Two. The subconcessionaire pledges also to ensure that the companies that are its controlling shareholders and whose main activity is, directly or indirectly, the execution of projects referred in
the Investments Plan attached to this subconcession contract, to not request admission or are listed in the stock exchange without previously notifying the Government. 

Three. The request for authorization mentioned in number one and the prior information mentioned in the previous
number must be respectively formulated or made by the subconcessionaire and with all the necessary documents, without prejudice of the Government asking for additional documents, data or information. 

Clause 19 

Structure of the shareholding and capital stock 

One. The subconcessionaire pledges to deliver annually to the Government, during December, a document stating its
shareholding structure, and as well the structure of the capital stock of the companies holding 5% or more of the subconcessionaire capital stock, and also the structure of the capital stock of the companies holding 5% or more of these companies
capital stock, and so on until the individuals or companies that are last shareholders, except the companies that are listed in stock exchanges in what concerns the shares dealt therein, or to present a declaration attesting that they did not have
any alteration. 
 Two. The subconcessionaire pledges also to endeavor to obtain and deliver to the
Government, together with the updating or declaration mentioned in number One, a declaration signed by each of its shareholders, and the persons mentioned in the previous number, duly certified, attesting that they hold the number of corporate
participations declared and that they are nominative, together with copy of the shares that incorporate the respective corporate participations. 

  
 11 

 Clause 20 
 Prohibition to accumulate functions in corporate bodies 

One. The subconcessionaire pledges to not appoint to the board of directors, general meeting board, statutory
audit board or any other corporate body, a person holding functions in a concessionaire corporate body, another subconcessionaire or a company managing one concessionaire in what refers the exploitation of games of fortune and chance and other games
in casino operating in the Special Administrative Region of Macau. 
 Two. The subconcessionaire pledges
to notify the Government and the concessionaire, as soon as possible, the appointment of any person to hold functions in the subconcessionaire board of directors, general meeting board, statutory audit board or any other corporate body. 

Three. The Government pledges to inform the subconcessionaire about the appointment of any person to hold
functions in the board of directors, general meeting board, statutory audit board or any other corporate body of other concessionaires and subconcessionaires and the companies managing concessionaires in what refers the exploitation of games of
fortune and chance and other games in casino operating in the Special Administrative Region of Macau. 
 Clause 21

 Management 
 One. The delegation of the subconcessionaire management, including the appointment of the managing director, the scope of his powers and the period of the delegation, and as well any alteration to
it, namely involving replacement, temporary or definitive, of the managing director, is subject to prior Government consent. For the effect, the subconcessionaire will send to the Government a minutes of its board of directors containing the
proposal of delegation of the subconcessionaire management, including the identity of the managing director, scope of his powers and the period of the delegation, references relative of his replacement in cases of impediment, and as well any
resolution relative to the replacement, temporary or definitive, of the managing director. A delegation of the subconcessionaire management has no validity until the Government authorization regarding all its elements. 

  
 12 

 Two. If the Government does not approve any or all the delegation
terms mentioned in the previous number, the subconcessionaire undertakes, within fifteen days from the non-acceptance notification, to send a new minutes and, in case of the person named not being accepted, a copy of the Annex II of the
Administrative Regulation number 26/2001 duly filled by the new named managing director. 
 Three. The
subconcessionaire pledges that no mandates or powers of attorney are executed bestowing, based on a stable relation, powers of the board of directors competence to execute businesses on behalf of the subconcessionaire, excepting the powers to carry
routine acts, namely with departments or public services, unless authorized by the Government. 
 Clause 22 

Articles of association and agreements between shareholders 

One. Any amendment to the subconcessionaire articles of association requires the Government approval, 

Two. The project for amendment of the subconcessionaire articles of association must be sent for the Government
approval with a minimal antecedence of thirty days before the date of the shareholders meeting to analyze that amendment. 
 Three. The subconcessionaire pledges to provide the Government with a certified copy of the document approving any alteration of its articles of association within thirty days after its execution.

 Four. The subconcessionaire pledges to notify the Government of any agreements between shareholders it
may be aware of. For this purpose, and without prejudice of any other measures it may or should take, the subconcessionaire shall indagate with its shareholders, fifteen days prior to any shareholders general meeting, or during a general meeting, if
it was not preceded of notice, about the existence of any agreements between shareholders, namely regarding the exercise of voting rights or other corporate rights, and inform the Government about the results of that measures. 

Five. The Government shall notify the subconcessionaire within sixty days if approves the alteration of its
articles of association and as well its agreements between shareholders. 

  
 13 

 Clause 23 
 Duty of information 
 One. Without prejudice of any
other duties of information established for the concessionaires under the concessions regime mentioned in Clause 6, the subconcessionaire pledges to: - 
 1) Notify the Government, as soon as possible, of any information that might affect its proper operation, such as those related with its liquidity and solvency, the existence of any legal proceedings
against itself or any of its directors, shareholders holding 5% or more of its capital stock and executive staffs with relevant functions in the casinos, any act or fact committed in its casinos and other gambling areas constituting a crime
or administrative breach of which has knowledge and any harmful attitude against the subconcessionaire or members of its corporate bodies by a director or worker of the Civil Service of the Special Administrative Region of Macau, including Security
Forces officers; 
 2) Notify the Government as soon as possible of all and any events that might harm, hinder,
make excessively onerous or excessively difficult the punctual and cabal execution of any obligation arising from this subconcession contract, or might cause the subconcession extinction, in the terms stipulated in Chapter XIX; 

3) Notify the Government as soon as possible about any of the following facts or occurrences: - 

1. Remunerations fixed or eventual, periodical or extraordinary, paid to the directors of the Concessionaire, investors
and executive employees with relevant positions in the casino, being received as salaries, remunerations, honoraries or others, and as well eventual mechanisms of participations on its profits; 

2. Benefits existent or to be created, including distribution of profits; 

3. Management and provision of services contracts existent or proposed by the subconcessionaire. 

4) To send to the Government, as soon as possible, certified copies of: - 

1. The contracts or other documents titling or describing any remuneration mentioned in number 1 of the previous
paragraph; 
 2. The contracts or other documents titling or describing any benefits or distribution of profits,
existent or to be created. 

  
 14 

 3. The management and provision of services contracts existent or proposed
by the subconcessionaire 
 5) Inform the Government, as soon as possible, of any imminent or foreseeable major
alteration in its economic and financial situation, and as well in the economic and financial situation of: - 

1. Its controlling shareholders; 

2. Any entities closely associated with the subconcessionaire, namely those that assumed or guaranteed the financing of
the investments or obligations the subconcessionaire is contractually bound to realize or assume; and 
 3. The
shareholders holding 5% or more of its capital stock that assumed or guaranteed the financing of the investments or obligations the subconcessionaire is contractually bound to realize or assume. 

6) To inform the Government as soon as possible, when the annual average of the business volume with a third party
reaches or exceeds MOP$250,000,000.00 (two hundred and fifty million Patacas). 
 7) To present annually to
DICJ, during January, a document stating all its bank accounts and respective balances. 
 8) To present, at its
soonest, supplementary or additional information as required by the Government. 
 9) To provide the DICJ and
the Finances Department, hereinafter DSF, as soon as possible, the data and information necessary for the cabal execution of their functions. 
 Two. The Government can determinate that the obligations contemplated in paragraphs 3) and 4) of the previous number be annual, 

CHAPTER IV 

Management Company 
 Clause 24 
 Duty of communication 

One. The subconcessionaire pledges to notify the Government, with a minimal antecedence of ninety days, about its
intention to contract with a management company 

  
 15 

 
not related with the exploitation of games of fortune and chance and other games in casino. 
 Two. For the effects of the previous number, the subconcessionaire pledges to send to the Government a certified copy of the management company articles of association or an equivalent document and
the draft of the respective management contract. 
 Three. The subconcessionaire pledges before the
Special Administrative Region of Macau to not execute a contract in which another entity assumes management powers relatively to the subconcessionaire for the exploitation of the games of fortune and chance and other games in casino. 

Four. The breach of the stipulated in the previous number, and without prejudice of other applicable sanctions or
penalties, incurs the payment to the Special Administrative Region of Macau of a penal clause in the amount of MOP$500,000,000.00 (five hundred million Patacas). 
 CHAPTER V 
 Idoneity 

Clause 25 

Subconcessionaire idoneity 
 One. The subconcessionaire pledges to remain idoneous during the subconcession validity, under the legal terms. 

Two. For the effects of the previous number, the Government, under the legal terms, subjects the subconcessionaire
to a continuous and permanent monitoring and supervision. 
 Three. The subconcessionaire pledges to
burden, at its soonest, the costs occurred, with its idoneity checking processes; for the effect, DCIJ will issue a document stating such costs, that will be their sufficient evidence. 

  
 16 

 Clause 26 
 Subconcessionaire shareholders, directors and executive staffs idoneity 
 One. The subconcessionaire shareholders holding 5% or more of its capital stock, its directors and executive staffs with relevant positions in the casino must remain idoneous during the
subconcession validity, under the legal terms. 
 Two. For effects of the previous number, the
subconcessionaire shareholders holding 5% or more of its capital stock, its directors and executive staffs with relevant positions in the casino are subjected to a Government continuous and permanent monitoring and supervision, under the legal
terms. 
 Three. The subconcessionaire pledges to ensure that the shareholders holding 5% or more of its
capital stock, its directors and executive staffs with relevant positions in the casino remain idoneous during the validity of the subconcession, being fully aware that their idoneity reflects in its own idoneity. 

Four. The subconcessionaire pledges to demand that the shareholders holding 5% or more of its capital stock, its
directors and executive staffs with relevant positions in the casino notify the Government, as soon as they have knowledge of it, of all and any fact that might be relevant to the subconcessionaire or theirs idoneity. 

Five. For the effects of the previous number, the subconcessionaire pledges to ask bi-annually its shareholders
holding 5% or move of its capital stock, its directors and executive staffs with relevant positions in the casino if they have any knowledge of any fact that might be relevant to the subconcessionaire or theirs idoneity, without prejudice of the
subconcessionaire, having knowledge of any relevant fact, informing the Government at its soonest. 
 Six.
The subconcessionaire pledges to inform the Government as soon as it comes to its knowledge of all and any fact that might be relevant to the idoneity of the shareholders holding 5% or more of its capital stock, its directors and executive
staffs with relevant positions in the casino. 
 Seven. The ruling of number three of the previous clause
applies to the processes of checking the idoneity of the shareholders holding 5% or more of its capital stock, its directors and executive staffs with relevant positions in the casino. 

  
 17 

 Clause 27 
 Special duty of cooperation 
 Without prejudice of the
general duty of cooperation stipulated in Clause 67, the subconcessionaire pledges to provide the Government with any document, information or data the Government considers necessary to verify whether its idoneity still holds. 

Clause 28 

Special duty of notification 
 One. The subconcessionaire pledges to notify the Government, as soon as it becomes aware of it, about the termination of a license or concession for the exploitation of games of fortune and
chance or other games in casino in any other jurisdiction of any shareholder holding 5% or more of the its capital stock. 
 Two. The subconcessionaire pledges to notify the Government as soon as it becomes aware of any investigation related with a fact allowing any agency regulating the exploitation of games of fortune
and chance and other games in casino activity in another jurisdiction to punish, interrupt or in any other way affect the license or concession for the exploitation of games of fortune and chance and other games in casino that any shareholder
holding 5% or more of its capital stock has in that jurisdiction. 
 CHAPTER VI 

Financial Capacity and Financing 
 Clause 29 
 The subconcessionaire financial capacity 

One. The subconcessionaire pledges to maintain financial capacity to operate the subconcession, and as well to
punctually and fully fulfill the obligations relative to any aspect of its activity, the investments and obligations to which is contractually bound or assumed under the terms of this subconcession contract, in special the Investments Plan attached
to this subconcession contract. 
 Two. For the effects of the previous number, the Government, under the
legal terms, subjects the subconcessionaire and the shareholders holding 5% or more of its capital stock to a continuous and permanent monitoring and supervision. 

Three. The subconcessionaire pledges to burden, at its soonest, the costs occurred with the processes for checking
its own and the shareholders holding 5% or more of its 

  
 18 

 
capital stock financial capacity; for the effect, DCIJ will issue a document stating such costs, that will be their sufficient evidence, 

Clause 30 

Loans and similar contracts 
 One. The subconcessionaire pledges to inform the Government of any loan or similar contract executed with a third party and amounting to more than MOP$30,000,000.00 (thirty million Patacas).

 Two. The subconcessionaire pledges to not grant any loan or execute a similar contract with its
directors, shareholders or executive staffs with relevant position in its casino, unless approved by the Government. 
 Three. The subconcessionaire pledges to not execute any contract with a commercial entrepreneur by which he could assume management or intervention powers in the subconcessionaire management,
namely through step in rights, unless approved by the Government. 
 Clause 31 

Assumption of risks 
 One. The subconcessionaire expressly assumes all the obligation and the integral and exclusive responsibility for all risks inherent to the subconcession in what concerns its financial capacity and
its financing, without prejudice of the provisions of Clause 40. 
 Two. The Special Administrative
Region of Macau is not subjected to any obligation, nor assumes any responsibility or risk, in what concerns the subconcessionaire financing. 
 Clause 32 
 Securing of financing 

One. The subconcessionaire pledges to secure the financing necessary to the punctual and cabal compliance of the
obligations relative to any aspect of its activity, the investments and obligations to which is contractually bound to execute or has assumed under the terms of this snbconcession contract, specially the Investments Plan attached to this
subconcession contract. 

  
 19 

 Two. Are not opposable to the Special Administrative Region of Macau
any exceptions or means of defense resulting from the contractual relations established by the subconcessionaire with third parties, including financing entities and shareholders of the subconcessionaire, in order to secure the financing mentioned
in the previous number. 
 Clause 33 
 Reserve funds 
 The subconcessionaire pledges to maintain
the reserve funds required by law. 
 Clause 34 
 Special duty of cooperation 
 One. Without prejudice
of the general duty of cooperation foreseen in Clause 67, the subconcessionaire pledges to make immediately available to Government any document, information or data the Government may consider necessary to verify if the adequate financial capacity
is maintained. 
 Two. The subconcessionaire pledges to notify the Government, as soon as possible, about
any loans, mortgages, declarations of debt, guaranties or any obligation contracted or to be contracted for financing any aspect of its activity, in an amount equal or higher than MOP$8,000,000.00 (eight million Patacas). 

Three. The subconcessionaire pledges to send to the Government as soon as possible, certified copies of any
documents relative to any loans, mortgages, declarations of debt, guaranties or any obligation contracted or to be contracted for financing any aspect of its activity. 

Four. The subconcessionaire pledges to obtain and present to the Government a declaration signed by each of its
controlling shareholders, including the last controlling shareholder, accepting to subject to this special duty of cooperation, and undertake to present any documents and to provide any information, data, authorizations or evidence that for the
purpose are requested. 

  
 20 

 CHAPTER VII 
 Investments Plan 
 Clause 35 

Investments Plan 
 One. The subconcessionaire pledges to execute the Investments Plan attached to this subconcession contract under the terms stipulated therein.  

Two. The subconcessionaire pledges namely: - 

1) To use, in all projects, skilled labor; 

2) To give preference, in the contracting of companies and workers to execute the projects listed in the Investments Plan
attached to this subconcession contract, to those that operate their business permanently or reside in the Special Administrative Region of Macau; 
 3) To observe in the preparation of the projects of the works relative to the projects specified in the Investments Plan attached to this subconcession contract, the norms and technical regulations in
force in the Special Administrative Region of Macau, namely the Foundations Regulations approved by the Law-Decree number 47/96/M of August 26 and the Buildings and Bridges Structures Safety and Actions Regulation, approved by the Law-Decree
number 56/96/M of September 16, and as well governmental departments specifications and homologation documents and the instructions of manufacturers or patent holding entities; 

4) To attach to the projects referred in the Investments Plan attached to this subconcession contract sent for approval
to Direcção dos Serviços de Solos, Obras Publicas e Trasportes [Land, Public Works and Transport Department], hereinafter designated DSSOPT, a quality control manual compiled by an entity technically qualified in
identical and similar works, whose technical competency is recognized and approved by this Department, with a works plan and respective financial and execution chronograms, with samples of the most significant materials and the curriculums of the
persons responsible for each specialty, besides other documents stipulated in the legislation in force, namely the Law-Decree number 79/85/M, of August 21; in case of non-presentation or if the quality control manual presented is non-approved,
the subconcessionaire pledges to abide by the quality control manual meanwhile complied by a specialized entity designated by DSSOPT; 

  
 21 

 5) To execute the works in strictly compliance with the projects approved,
according to the legal and regulatory provisions in force and conforming to standards internationally recognized in works and supplies of the same type, and as well according to the trade regulations; 

6) To observe the construction and opening to the public deadlines for the projects described in the Investments Plan
attached to this subconcession contract; 
 7) To use in the execution of the projects described in the
Investments Plan attached to this subconcession contract, materials, systems and equipment certified and approved by renowned entities and according to international standards, generally recognized as having high international quality; 

8) To maintain the quality of all projects described in the Investments Plan attached to this subconcession contact,
according to high standards of international quality; 
 9) To ensure that the commercial businesses included in
its enterprises present high standards of international quality; 
 10) To maintain a modern, efficient and high
quality management in accordance with high standards of international quality; 
 11) To notify the Government,
as soon as possible, of all and any situation altering or that might alter in a relevant way, either during its enterprises construction phase, or in the phase of exploitation of any aspect of its activity, the normal progress of the works, and as
well the occurrence of structural or other anomalies in its enterprises, with a detailed and grounded report of that situations, integrating eventually the contribution of entities alien to the subconcessionaire and of recognized competence and
reputation, with the indication of the measures taken or to be implemented to overcome that situations. 

Three. The subconcessionaire is liable before the Special Administrative Region of Macau and others for any losses
resulting from deficiencies, errors or serious omissions in the design and dimensioning of the project, in the execution of construction works and in the maintenance of constructions subjacent to the Investments Plan attached to this subconcession
contract, for which is imputable. 
 Four. The Government can authorize that the periods mentioned in
paragraph 6) of the number Two be altered with no need to revise this subconcession contract. 

  
 22 

 Five. The Government pledges to enable the subconcessionaire to
execute, directly or indirectly, under the legal terms, the projects described in the Investments Plan attached to this subconcession contract. 
 Clause 36 
 Alterations to the projects listed in the Investments Plan

 One. In the execution of the Investments Plan attached to this subconcession contract, the
Government can demand any documents or impose alterations relatively to the execution of the projects listed therein to guarantee the fulfillment of the norms and technical regulations in force and the level of quality standards demanded.

 Two. The Government shall not impose any alterations to the referred projects resulting in an increase
of the global amount referred in Clause 39. 
 Clause 37 

Supervision 
 One. The Government, namely through DSSOPT, shall follow and supervise the execution of the works, specifically the accomplishment of the work plan and the materials, systems and equipment quality,
according to the legislation applicable in function of the Investments Plan attached to this subconcession contract. 
 Two. DSSOPT will inform the subconcessionaire the appointment of representatives to follow up and supervise the works execution; if more than one representative will be responsible for such work,
one of them will be appointed as the leader. 
 Three. For the effects of number one, the
subconcessionaire pledges to present detailed monthly reports on the evolution of the Investments Plan attached to this subconcession contract on a monthly basis. These monthly reports shall specify at least - 

1) The most relevant events, staffs numbers, materials, systems and equipment quantities involved; 

2) The evolution of the works relative to the works plan (progress control); 

3) Updating of the financial and execution chronograms; 

4) The need of projects, supplies, means to be used, materials, systems and equipment; 

5) Major measures taken to ensure the implementation of work plan; 

  
 23 

 6) Actions to be taken to correct deviations. 

Four. The subconcessionaire pledges to present written and detailed extraordinary reports, whenever necessary,
namely when the normal progress of the works relative to the execution of the Investments Plan attached to this subconcession contract is jeopardized. 
 Five. The subconcessionaire pledges to provide, at the Government request, and within the period stipulated, any documents, namely texts and drawings relative to the Investments Plan attached to
this subconcession contract. 
 Six. The subconcessionaire pledges also to provide all clarifications and
information requested in order to complement all the documents mentioned in the previous number. 
 Seven.
Whenever the Government has doubts concerning the works quality, it can demand the execution of any tests besides those contemplated by the subconcessionaire, consulting the subconcessionaire, if necessary, on the decision rules to be adopted.

 Eight. The subconcessionaire shall burden the costs of the tests mentioned in the previous number and
with the repair of the deficiencies found. 
 Nine. The Government, namely through DSSPT, can address
orders, notices and notifications related with the works execution technical aspects, directly to the project technical director. 
 Ten. The project technical director shall follow the works with assiduity and be at the site whenever being requested. 

Eleven. Under the terms of the law, the Government, namely through DSSPOT, can halt and stop the execution of the
works whenever exist discrepancy with the projects approved or breach of the applicable legal, regulatory or contractual norms or provisions. 
 Twelve. The powers to supervise the compliance of the obligations arising from this subconcession contract do not involve any liability of the Special Administrative Region of Macau for the
execution of the construction works, being exclusive responsibility of the subconcessionaire all the imperfections or defects of the design, execution or running of the referred works, except those resulting from decisions taken by the Government.

  
 24 

 Clause 38 
 Contracting and subcontracting 
 The contracting and
subcontracting of others does not exempt the subconcessionaire from its legal or contractual obligations. 
 Clause 39

 Application of the Investments Plan remaining funds 

If after conclusion of the Investments Plan attached to this subconcession contract, the total amount of disbursements by
the subconcessionaire directly, or indirectly against the Government authorization, will be less than the global amount of MOP 4,000,000,000,00 (four billion Patacas), the subconcessionaire pledges to spend the remaining funds in projects
correlative to its activity, to be named by the subconcessionaire and accepted by the Government, or in projects of relevant public interest for the Special Administrative Region of Macau, to be indicated by the Government. 

Clause 40  
 Insurance 
 One. The subconcessionaire pledges to
execute and maintain updated insurance contracts necessary to guarantee an effective and complete cover of the risks inherent to the development of the activities integrated in the subconcession, being those insurances underwritten with insurance
companies authorized to operate in the Special Administrative Region of Macau or, with the Government authorization, with insurance companies from abroad, when the insurance proves to be unviable or too onerous to the subconcessionaire. 

Two. The subconcessionaire must, namely, ensure the existence and maintenance in force of the following insurance
contracts: - 
 1) Labor accidents and occupational diseases insurance for its workers; 

2) Civil liability insurance for all its vehicles; 

3) Civil liability insurance for its vessels, airplanes or other aircraft apparatus or when using them under leasing;

 4) Civil liability insurance for installation of advertising materials; 

5) General civil liability insurance related with the exploitation of games of fortune and chance or other games in
casino in the Special Administrative Region of 

  
 25 

 
Macau, and as well the development of other activities integrated in the subconcession and not covered by another insurance contract; 

6) Insurance against damage in buildings, furniture, equipment and other properties used in the subconcession activities;

 7) Construction insurance (all risks, including civil liability) relatively to the execution of any works or
in buildings for the subconcessionaire activities. 
 Three. The insurance mentioned in paragraph 6) of
the previous number is multi-risks, covering, at least, the following: - 
 1) Fire, lightning or explosion
(whatever its nature); 
 2) Pipes bursting, leakage or overflow of tanks, boilers, canalizations, cisterns,
lavatories or water transport apparatus; 
 3) Floods, typhoons, tropical storms, volcano eruptions, earthquake
or other natural disasters; 
 4) Airplanes or other aircraft apparatus crash or collision, or drop or jettison
of objects from them; 
 5) Vehicles collision; 

6) Theft or robbery; 
 7) Strikes, robberies, riots, public order disturbances or other events of similar nature. 
 Four. The capital or minimum limit for the insurances referred in number two is as follows: - 
 1) In accordance with the legislation in force for the insurances contemplated in paragraphs 1) to 4); 
 2) In an amount to be stipulated by the Government for the insurance contemplated in paragraph 5), bearing in mind, among other parameters, the volume of business of the activities integrated in the
subconcession license and the accidents rate of the previous year; 
 3) Equal to the net value of the
properties contemplated in paragraph 6), being considered as net value the gross value minus the accumulated depreciation; 
 4) The value of the works for the insurance contemplated in paragraph 7). 
 Five. The subconcessionaire pledges also to ensure that the entities with who contracts cover labor accidents and occupational diseases. 

  
 26 

 Six. The subconcessionaire must provide the Government with evidence
of the insurance policies existence and validity, sending it their copies, at the time of their execution or whenever there is a renewal. 
 Seven. The subconcessionaire pledges to not start any works without sending first the copies mentioned in the previous number to the Government. 

Eight. Unless approved by the Government, the subconcessionaire can not cancel, interrupt, alter or replace any
insurance contracts, except for a mere change of the insurer, and in this case the subconcessionaire will notify this fact as soon as possible to the Government. 

Nine. The Government can use the guarantee to fulfill the legal or contractual obligations of the
subconcessionaire, if the subconcessionaire fails to pay the insurance premiums. 
 Ten. The insurances
the subconcessionaire is bound to contract under the terms of the concession contract executed between the Special Administrative Region of Macau and the concessionaire do not include nor replace the ones foreseen in this clause. 

CHAPTER VIII 

Property 

Clause 41 

Special Administrative Region of Macau property 

One, The subconcessionaire pledges to ensure the maintenance or replacement, according to DICJ instructions, of
the Special Administrative Region of Macau property that may be affected to the subconcession exploitation through the temporary transfer of its usufruct, fruition and use. 

Two. The subconcessionaire pledges to ensure the maintenance of the land, soils or natural resources for whose
management the Government is responsible, in the terms of article n° 7 of the Special Administrative Region of Macau Basic Law, that were or will be affected to the subconcession exploitation, either by lease or by concession. 

  
 27 

 Clause 42 
 Other property 
 One. The casinos, and as well the
equipment and implements affected to the games, shall be compulsorily located in the subconcessionaire buildings, and no onus or encumbrances shall be imposed on the casinos, equipment and implements, except with the Government approval. 

Two. Notwithstanding the approval referred in the previous paragraph, the subconcessionaire pledges that upon
expiration of the subconcession, the casinos, and as well the equipment and implements affected to the casinos, even if outside their premises, are free of any onus or encumbrances. 

Three. Unless authorized by the Government, the casinos cannot be located in properties whose use and fruition are
titled by lease contracts, independently of their nature, or any other type of contract that does not attribute the subconcessionaire full ownership, even if atypical; the referred authorization can, namely, impose as condition, in order to allow
the reversion of the casinos to the Special Administrative Region of Macau, that the subconcessionaire purchases the properties where the casinos are located until one hundred eighty days before the date foreseen in number one of the Clause 43,
unless when the subconcession expires before that date, then the purchase must be made as soon as possible. 

Four. Once authorized, the subconcessionaire pledges to send to the Government copies of the contracts mentioned
in the previous number, and as well copies of all the alterations and amendments, even with retroactive effects. 
 Five. The subconcessionaire pledges to locate all its casinos in buildings or buildings complexes, even if an economical and functional property, under the independent units system, for the casinos
to be integrated in one or more independent units, being those areas perfectly identified and defined. 

Six. For the effects of the previous number, the subconcessionaire pledges, as soon as possible, to present to the
Government a certificate of the property registration, describing all its independent units, together with a floor plan where the respective areas are identified and defined. 

Seven, The subconcessionaire is bound to register any alteration to the independent units ownership, and shall
send, as soon as possible, to the Government and through DSSOPT, the respective certificate of the properly registration. 

  
 28 

 Eight. The Concessionaire pledges also to submit for the Government
approval, the condominiums regulation concerning the independent units ownership. 
 Clause 43 

Reversion of the casinos, equipment and implements affected to the games 

One. For the effects of this subconcession contract, on 31st March in the year two thousand twenty, except when the subconcession
expires before that date, the subconcessionaire casinos, and likewise the equipment and implements affected to the games, even if located outside their premises, will revert gratuitously and automatically to the Special Administrative Region of
Macau, pledging the subconcessionaire to deliver them in perfect condition and operation, without prejudice of their normal wear and tear from the use, and free from any onus or encumbrance. 

Two. The subconcessionaire pledges to immediately deliver the property mentioned in the previous number.

 Three. Should the subconcessionaire fail to deliver the property mentioned in number one, the
Government will take immediate administrative possession of the property, being the respective expenses burdened on account of the guarantee for compliance of the subconcessionaire legal or contractual obligations. 

Four. On the date mentioned in number one, the Government will survey the property mentioned in Clauses 41, and
42, which representatives of the subconcessionaire can attend, to check the conservation and maintenance conditions of that property, being drawn a survey report. 

Five. Upon dissolution or liquidation of the subconcessionaire, the respective corporate properties division shall
not be carried out unless the Government attests, through the compulsory inventory mentioned in the next clause, that the properties object of reversion are in good conservation and operation conditions, or without being secured, by means of any
guarantee accepted by the Government, the payment of any sums due to the Special Administrative Region of Macau, as compensation or any other title. 
 Six. The provisions of the last part of number one does not hinder the normal renewal of the equipment and implements affected to the games. 

  
 29 

 Clause 44 
 Inventory of the assets affected to the sub concession 
 One. The subconcessionaire pledges to prepare in triplicate and maintain updated the inventory of all properties and rights belonging to the Special Administrative Region of Macau and affected to
the subconcession, and as well all properties revertible to the Special Administrative Region of Macau, doing for the effect, until the 31st day of May of each year, the updating of the maps showing the alterations occurred and sending them to DICJ and DSF.

 Two. In the last year of the subconcession, the inventory aforementioned will be done, compulsorily,
sixty days before its term. 
 Three. In the other cases of the subconcession extinction, the inventory
mentioned in number one will be done on a date to be stipulated by the Government. 
 Clause 45  

Improvements 
 Any improvements made, at whatever title, in the properties mentioned in Clause 41, and as well in properties revertible to the Special Administrative Region of Macau, do not entitle the subconcessionaire
and/or the concessionaire to any compensation or indemnification and do not need to be removed. 
 Clause 46 

Concession of land to be used by the subconcessionaire 

One. The concession system for land to be used by the subconcessionaire, namely for the subconcession.
exploitation, is stipulated in the respective land concession contract. 
 Two. The land concession
contract to be executed between the Government and the subconcessionaire is governed by the provisions of this subconcession contract, in the applicable part. 

  
 30 

 CHAPTER IX 
 Premium 
 Clause 47 

Premium 
 One. The subconcessionaire pledges to pay an annual premium to the Special Administrative Region of Macau while the subconcession is in force, as consideration for the exploitation of the games of
fortune and chance or other games in casino. 
 Two. The amount of the annual premium payable by the
subconcessionaire is formed by a fixed part and a variable part. 
 Three. The amount relative to the
fixed part of the annual premium payable by the subconcessionaire is MOP30,000,000.00 (thirty million Patacas) per year. 
 Four. The amount relative to the variable part of the annual premium payable by the subconcessionaire will be calculated based on the number of the tables and electrical or mechanical machines,
including the slot machines, operated by the subconcessionaire. 
 Five. For effects of the previous
number provisions: - 
 1) The subconcessionaire will pay MOP300,000.00 (three hundred thousand Patacas) per
year and per each table reserved to certain games and gamblers, namely operated in a special room or area; 
 2)
The subconcessionaire will pay MOP150,000.00 (one hundred fifty thousand Patacas) per year and per each table non reserved to certain games and gamblers; 
 3) The subconcessionaire will pay MOP1,000.00 (one thousand Patacas) per year and per each electrical or mechanical gambling machine, including slot machines. 

Six. Independently of the number of tables the subconcessionaire operates at any time, the amount relative to the
variable part of the premium shall not be less than the sum originated by the permanent operation of 100 (one hundred) tables reserved to certain games or gamblers, namely operated in special gambling rooms or areas, and 100 (one hundred) tables non
reserved to certain games and gamblers. 
 Seven. The subconcessionaire pledges to pay the amount
relative to the fixed part of the annual premium until the tenth day of January of the respective year, and the Government can stipulate that the payment be made in monthly installments. 

  
 31 

 Eight. The Concessionaire pledges to pay monthly, until the tenth day
of the following month, the amount relative to the variable part of the annual premium concerning the tables and electric or mechanical gambling machines, including slot machines, it operated during the previous month. 

Nine. For the computation of the amount relative to the variable part of the annual premium referred in the
previous number, is taken into account the number of days that, in the month in question, each table and each electric or mechanical gambling machine, including slot machines, was operated by the subconcessionaire. 

Ten. The payment of the annual premium is settled by presentation of the respective payment form at the Special
Administrative Region of Macau Finances Department Treasury. 
 CHAPTER X 

Contributions 

Clause 48 

Contributions to a public foundation 
 One. The subconcessionaire pledges to pay the Special Administrative Region of Macau a contribution in an amount corresponding to 1.6% (one point six percent) of the gambling gross revenue that
will be made available to a public foundation whose purposes are the promotion, study and development of cultural, social, economic, educative, scientific, academic and philanthropic actions to be indicated by the Government. 

Two. The subconcessionaire pays the contribution mentioned in the previous number monthly until the tenth day of
the following month by presentation of the respective payment form at the Special Administrative Region of Macau Finances Department Treasury. 
 Three. The contribution mentioned in number one will be object of its own budgetary inscription by the Special Administrative Region of Macau. 

  
 32 

 Clause 49 
 Contribution to the urban development, tourism promotion 
 and social
security 
 One. The subconcessionaire pledges to pay the Special Administrative Region of Macau a
contribution in an amount corresponding to 2.4% (two point four percent) of the gambling gross revenue for the urban development, tourism promotion and social security of the Special Administrative Region of Macau. 

Two. The contribution mentioned in the previous number is paid monthly until the tenth day of the following month
by presentation of the respective payment form at the Special Administrative Region of Macau Finances Department Treasury. 
 Three. The contribution mentioned in number one will be object of its own budgetary inscription by the Special Administrative Region of Macau. 

Four. The Government can nominate one or more projects or one or more entities as beneficiaries of part of the
sums paid. 
 Five. The Government and the subconcessionaire can, up to the maximum amount of 1.2% (one
point two percent) of the gambling gross revenue, agree on one or more projects or one or more entities for awarding these sums, in which case the subconcessionaire can award them directly, being the contribution mentioned in number one to be paid
at the Special Administrative Region of Macau Finances Department Treasury correspondently reduced. 
 CHAPTER XI 

Taxation and submission of documents 
 Clause 50 
 Special tax on gambling 

One. The subconcessionaire pledges to pay the Special Administrative Region of Macau the special tax on gambling
lawfully stipulated, that will be paid in twelfths, settling it monthly with the Government until the tenth day of the following month. 
 Two. The payment of the special tax on gambling can be made in Patacas or in a currency accepted by the Government. 

Three. The payment of the special tax on gambling in Patacas is made directly to the public treasury coffers of
the Special Administrative Region of Macau. 

  
 33 

 Four. The payment of the special tax on gambling in a currency
accepted by the Government is made through the delivery of the respective currency to the Monetary Authority of Macau, that will made available the correspondent amount in Patacas to the public treasury coffers of the Special Administrative Region
of Macau. 
 Clause 51 
 Taxation at source 
 One. The subconcessionaire
pledges to deduct at source, at definitive title, the tax lawfully stipulated on the commissions or other remunerations paid to junkets, handing the respective amounts monthly, until the tenth day of the following month, to the Treasury of the
Finances Department of the Special Administrative Region of Macau. 
 Two. The subconcessionaire pledges
to deduct at source, at definitive title, the professional tax lawfully stipulated relative to its staffs, handing the respective amounts to the Treasury of the Finances Department of the Special Administrative Region of Macau, under the legal
terms. 
 Clause 52 
 Payment of other taxes, contributions, duties or emoluments due 
 The subconcessionaire pledges to pay other taxes, contributions, duties or emoluments due and stipulated in the legislation of the Special Administrative Region of Macau and from which payment is
not exempted. 
 Clause 53 
 Document corroborative of the inexistence of debts to the Public Treasury 

of the Special Administrative Region of Macau 

One. The subconcessionaire pledges to present yearly to the Government, until March 31, a certificate
relative to the previous year and issued by DSF, attesting the subconcessionaire is not in debt with the Public Treasury of the Special Administrative Region of Macau in respect of any taxes and duties, fines or accrued, being considered
incorporated in this concept the compensatory interests and interests on arrears and the 3% of debts. 
 Two.
The subconcessionaire pledges as well to present annually to the Government a document stating the fiscal situation, relative to the previous year, of its 

  
 34 

 
managing director, members of its corporate bodies and its shareholders holding 5% or more of its capital stock. 
 Clause 54 
 Document corroborative of the inexistence of debts to the
Social Security 
 of the Special Administrative Region of Macau 

The subconcessionaire pledges to present annually to the Government, until March 31, a document issued by the Social
Security Fund of the Special Administrative Region of Macau attesting the subconcessionaire has its situation with the Social Security of the Special Administrative Region of Macau in order. 

Clause 55 

Provision of information 
 One. The subconcessionaire pledges to send quarterly to the Government, until the last day of the month following the trimester in question, its balance sheet of the previous trimester, except the
one relative to the last quarter of each year, which is sent until the last day of February of the following year. 
 Two. The subconcessionaire pledges also to send to the Government, until thirty days prior to the annual general meeting for approval of accounts, the following data: - 

1) The accounting and statistical maps referent to the previous year; 

2) The full names, in all their possible versions, of the persons that during that year were members of the board of
directors and statutory audit board, the appointed attorneys, and as well the chief accountant; and 
 3) A copy
of the board of directors’ report and accounts, together with the statutory audit board and external auditors opinions, 

Clause 56 

Accounting and internal control 
 One. The subconcessionaire pledges to have its own accounting system, well organized administratively and with an appropriate internal control and to comply with the directives issued by the
Government in this regard, namely through DICJ or DFS. 
 Two. The subconcessionaire shall adopt in the
compilation and presentation of the accounts only the criteria of the Accounting Official Plan in force in the Special 

  
 35 

 
Administrative Region of Macau, without prejudice of the Chief Executive, by proposal of the DICJ director or the DSF director, order the existence of certain books, documents or other accounting
data, and as well determinate the criteria to be adopted by the subconcessionaire in the accounting of its operations and the observance of special norms in its compilation and presentation. 

Clause 57 

Annual accounts external auditing 
 The subconcessionaire pledges to hold annually an auditing of its accounts, by an external independent entity of renowned international reputation, previously accepted by DICJ and DSF, providing in
advance all the documents necessary, namely those referred in article 34 of the Law number 16/2001. 
 Clause 58

 Extraordinary auditing 
 The subconcessionaire pledges at any time, with or without previous notice, to subject to extraordinary auditing, by an external independent entity of renowned international reputation or any other
entity, whenever DICJ or DSF deem necessary or convenient. 
 Clause 59 

Compulsory publications 
 One. The subconcessionaire pledges, in relation to the previous year, closed on thirty first December, to publish annually, until April 30, in the Official Gazette of the Special
Administrative Region of Macau and in two of the newspapers with biggest circulation in the Special Administrative Region of Macau, being one in Chinese and another in Portuguese, the following data: - 

1) Balance, profit and loss account and annex; 

2) Synthesis of the activity report; 

3) Opinion of the statutory audit board; 

4) Synthesis of the external auditors opinion; 

5) List of the shareholders, holding 5% or more of its capital stock, in any period of the year, stating the respective
percentage; and 
 6) Names of its corporate bodies members. 

  
 36 

 Two. The subconcessionaire pledges to send to the Government copies
of all data mentioned in the previous number, and any other data for publication required by the concessions regime mentioned in Clause 60, with the minimal antecedence of ten days prior to the publication date. 

Three. The concessionaire and the subconcessianaire pledge to publish conjunctly the data mentioned in number one.

 Clause 60 
 Special duty of cooperation 
 Without prejudice of the
general duty of cooperation stipulated in Clause 67, the subconcessionaire pledges to cooperate with the Government, namely the DICJ and DSF, to provide data and information required for the analysis or checking of its accounting, the execution of
extraordinary auditing, and in general, the duties stipulated in the concessions regime referred in Clause 60. 
 CHAPTER XII

 Guarantees 
 Clause 61 
 Surety to guarantee the fulfillment of the subconcessionaire

 legal or contractual obligations 

One. The surety to guarantee the fulfillment of the subconcessionaire legal or contractual obligations can be
provided in any of the ways lawfully stipulated, as long as accepted by the Government. 
 Two. The
subconcessionaire pledges to keep an autonomous first demand guarantee in favor of the Government, issued by Banco Nacional Ultramarino, S. A., to guarantee: - 
 1) The exact and punctual compliance of the legal or contractual obligations to which the subconcessionaire is bound; 

2) The exact and punctual payment of the premium to which the subconcessionaire is bound before the Special
Administrative Region of Macau and foreseen on Clause 47; 
 3) The payment of fines or other pecuniary
penalties that might be mulcted to the subconcessionaire due to a legal provision or clause of this subconcession contract; 

  
 37 

 4) The payment of any indemnification arising from contractual liability for
the emergent losses and cessant profits resulting from the total or partial noncompliance of the obligations to which the subconcessionaire is bound in this subconcession contract. 

Three. The subconcessionaire pledges to keep in favor of the Government the autonomous first demand guarantee
referred in the previous number with the maximum value of MOP500,000,000.00 (five hundred million Patacas) since the execution of this subconcession contract till the twentieth day of April of the year two thousand ten and with the maximum value of
MOP300,000,000.00 (three hundred million Patacas) since the twentieth day of April of the year two thousand ten till one hundred eighty (180) days after the final term of the subconcession, foreseen in Clause 8. 

Four. The subconcessionaire pledges to take all measures and comply with all obligations necessary to maintain
valid the autonomous bank guarantee mentioned in number two. 
 Five. The Government shall use the
autonomous bank guarantee mentioned in number two, independently of previous judicial decision, whenever the subconcessionaire fails to comply with any of the legal or contractual obligations to which is bound, doesn’t settle exactly and
punctually the payment of the premiums to which is bound, doesn’t pay or contest within the legal time the fines or other pecuniary penalties it has been mulcted by reason of legal provision or clause of this subconcession contract; the
Government shall also use the autonomous bank guarantee mentioned in number two for any compensation arisen from contractual liability for the emergent losses and cessant profits resulting from the total or partial noncompliance of the obligations
to which the subconcessionaire is bound in this subconcession contract 
 Six. Whenever the Government
uses the autonomous bank guarantee mentioned in number two, the subconcessionaire is bound, within fifteen days from being informed of that use, to take all the necessary measures to restore the full effect of the surety. 

Seven. The autonomous bank guarantee mentioned in number two can only be revoked upon Government approval.

 Eight. The Government can authorize the amendment of the terms or conditions referred in numbers 3 to
6, and as well authorize the replacement of the autonomous bank guarantee mentioned in number 2 by any other lawful form foreseen to provide the 

  
 38 

 
surety to guarantee the compliance of the subconcessionaire legal or contractual obligations. 
 Nine. The costs with the issue, maintenance and cancellation of the surety to guarantee the compliance of the subconcessionaire legal or contractual obligations are fully burdened by the
subconcessionaire. 
 Clause 62 
 Specific bank guarantee to secure the payment of the special tax on gambling 
 One. The subconcessionaire pledges to present, whenever required by the Government, if there are justified fears that the subconcessionaire would not pay the probable monthly sums of the special
tax on gambling, in the period and in the terms, conditions and amount to be stipulated by the Government, a first demand autonomous bank guarantee in favor of the Government and to guarantee the payment of that amounts. 

Two. The terms and conditions of the autonomous bank guarantee mentioned in the previous number cannot be altered
without the Government authorization, pledging the subconcessionaire to fulfill any obligations deriving or that might derive from maintaining valid that guarantee, in the exact terms in which was executed. 

Three. The Government can use the autonomous bank guarantee mentioned in number one, independently of previous
judicial decision, whenever the subconcessionaire fails to pay the special tax on gambling due to the Special Administrative Region of Macau in the terms of the law and this subconcession contract. 

Four. Whenever the Government uses the autonomous bank guarantee mentioned in number one, the subconcessionaire is
bound, within fifteen days from being informed of that use, to take all the necessary measures to restore the full effect of the surety. 
 Five. The subconcessionaire can only revoke the autonomous bank guarantee mentioned in number one after elapsing one hundred eighty days from the extinction of the subconcessionaire and upon
Government approval. 
 Six. The costs with the issue, maintenance and cancellation of the autonomous
bank guarantee mentioned in number one are fully burdened by the subconcessionaire. 

  
 39 

 Clause 63 
 Guarantee provided by a controlling shareholder 
 or shareholders of the
subconcessionaire 
 One. The Government can demand one controlling shareholder of the
subconcessionaire to provide a guarantee acceptable by the Government, relative to the compliance of the commitments and obligations assumed by the subconcessionaire; if there is no controlling shareholder, the Government can demand that the
subconcessionaire shareholders provide the guarantee. 
 Two. The guarantee mentioned in the previous
number can be demanded, namely if there are justified fears that the subconcessionaire is not able to fulfill the legal and contractual obligations to which is bound. 

Three. The guarantee mentioned in number one can be provided by a deposit in cash, a bank guarantee, a surety
insurance or any other form stipulated in Article 619 of the Civil Code, in the period, terms, conditions and amount to be defined by Dispatch of the Chief Executive. 

Four. The Government can use the guarantee provided under this clause, independently of previous judicial
decision, whenever the subconcessionaire fails to fulfill its commitments and obligations, in the terms of the law and this subconcession contract. 
 Five. Whenever the Government uses the guarantee provided under this clause, the subconcessionaire pledges that its controlling shareholders or the respective shareholders take all the necessary
measures to restore the full effect of the guarantee, within fifteen days from being informed of the dispatch relative to the use of the guarantee. 
 Six. The terms and conditions of the guarantee provided under this clause cannot be altered without the Government approval 
 CHAPTER XIII 
 Supervision of the subconcessionaire obligations compliance

 Clause 64 
 Inspection, supervision and control by the Government 

  
 40 

 One. The right to inspect, supervise and control the execution of the
subconcessionaire obligations is exerted by the Government, namely through the DICJ and DSF. 
 Two. For
the due effects, the subconcessionaire pledges, whenever requested by the Government, and with no need to previous notice, to provide the Government, or any other entity appointed by the Government, duly mandated and identified for the effect, free
access to any of its facilities, and as well free access and inspection of its accounting or bookkeeping, including any transactions, books, minutes of meetings, accounts and other records or documents, the statistics and management records used,
providing also photocopies of whatever the Government or the entity appointed by the Government may consider necessary. 
 Three. The subconcessionaire pledges to abide to and fulfill any Government decisions within the powers of inspection and supervision, namely the DICJ directions, including those relative to the
eventual interruption of the operations in casino and other gambling areas. 
 Four. The subconcession
exploitation is subjected to DICJ permanent inspection and supervision, under the terms of the applicable legislation. 

Clause 65 

Daily supervision of the gambling exploitation gross revenues 

The subconcessionaire shall subject to the daily supervision of its gambling exploitation gross revenues by the
Government through DICJ, under the legal terms. 
 CHAPTER XIV 

General duties of cooperation 
 Clause 66 
 General duty of cooperation by the Government 

and the concessionaire 
 The Government and the concessionaire pledge to cooperate with the subconcessionaire in order to allow the latter to comply with its legal and contractual obligations. 

  
 41 

 Clause 67 
 Subconcessionaire general duty of co operation 
 One.
For the effects of this subconcession contract, the subconcessionaire pledges to cooperate with the Government, providing any documents and any information, data, authorizations or evidence that might be requested. 

Two. The subconcessionaire pledges also to cooperate with the concessionaire in order to allow the latter to
comply with its legal and contractual obligations. 
 CHAPTER XV 

Other duties of the subconcessionaire 
 Clause 68 
 Operation of the casinos and other facilities and
outbuildings 
 The subconcessionaire pledges to operate normally all the casinos branches and other
facilities and outbuildings used for the authorized purposes of the subconcession exploitation. 
 Clause 69 

General duties of the subconcessionaire 
 One. Is special obligation of the subconcessionaire to foment and demand from all entities to be contracted for the development of activities integrated in the subconcession the observance of all
good organization and operation rules and the special measures of security relative to its casinos and other gambling areas, clients, staffs and other persons working therein. 

Two. The subconcessionaire pledges to contract for the activities integrated in the subconcession, entities duly
licensed and authorized, and technically skilled and professionally adequate for the effect. 
 Clause 70 

Other Government approvals 
 The replacement, cancellation or alteration of documents of proof and records relative to the subconcessionaire activities or the purchase of gaming equipment and material requires the Government
authorization. 

  
 42 

 Clause 71 
 Government authorizations and approvals 
 The Government
authorizations and approvals, and its eventual refusals, do not exempt the subconcessionaire from the punctual compliance of the obligations assumed in this subconcession contract, nor imply the assumption, by the Government, of any liabilities,
unless when its actuation resulted in costs or caused special and exceptional losses to the subconcessionaire. 
 CHAPTER XVI

 Liability of the subconcessionaire and the concessionaire 

Clause 72 

Civil liability towards the Special Administrative Region of Macau 

One. The subconcessionaire is liable towards the Special Administrative Region of Macau for any losses resulting
from the total or partial noncompliance of its legal or contractual obligations due to facts for which is imputable. 
 Two. The concessionaire does not assume nor shares any liability towards the Special Administrative Region of Macau for any losses resulting from the total or partial noncompliance of the
subconcessionaire legal or contractual obligations due to facts imputable to the latter. 
 Clause 73 

Exoneration of the Special Administrative Region of Macau and the concessionaire 

from the subconcessionaire extra-contractual liability with others 

One. The Special Administrative Region of Macau does not assume or share any subconcessionaire liability resulting
from acts committed by the latter or committed on its account, involving or that may involve civil or another liability. 
 Two. The concessionaire does not assume or share any subconcessionaire liability resulting from acts committed by the latter or committed on its account, involving or that may involve civil or
another liability. 
 Three. The subconcessionaire will be also liable, under the principal-commissary
relation general terms, for the losses caused by the entities it contracted for the development of activities integrating the subconcession. 

  
 43 

 CHAPTER XVII 
 Subjective changes in the subconcession 
 Clause 74 

Assignment of the contractual position, encumbrance, 
 conveyance and alienation 
 One. The
subconcessionaire pledges with the Special Administrative Region of Macau to not assign, convey, alienate or in any other way burden, in the whole or in part, in a tacit or explicit form, formally or informally, the exploitation of a casino or one
gambling area nor execute any legal business intending to attain a similar result, except if authorized by the Government. 
 Two. An act executed breaching the previous number provisions, and without prejudice of other sanctions or penalties applicable, implies the payment to the Special Administrative Region of Macau of
the following penal clauses: - 
  

	 	•	 	 in case of the whole assignment, conveyance or alienation – MOP1,000,000,000.00 (one billion Patacas); 

 

	 	•	 	 in case of a partial assignment, conveyance or alienation – MOP500,000,000.00 (five hundred million Patacas); 

 

	 	•	 	 in case of encumbrance, in the whole or in part – MOP300,000,000.00 (three hundred million Patacas). 

Three. The request of authorization mentioned in number one shall be accompanied with all the necessary documents
and details of all the legal business the subconcessionaire intends to carry out, without precluding the Government from requesting additional documents, data or information. 
 Clause 75 
 Prohibition of subconcession 

One. The subconcessionaire pledges before the Special Administrative Region of Macau to not subconcession the
subconcession, in the whole or in part, or carry out any legal business to attain the same result. 
 Two.
An act breaching the provisions set forth in the previous number, and without prejudice of other applicable sanctions or penalties, implies the payment to the 

  
 44 

 
Special Administrative Region of Macau of a penal clause in the amount of MOP500,000,000.00 (five hundred million Patacas). 

CHAPTER XVIII 

Noncompliance of the contract 
 Clause 76 
 Noncompliance of the contract 

One. Without prejudice of the provisions set forth in Clauses 77 and 78, the noncompliance of the duties
and obligations imputable to the subconcessionaire arising from this subconcession contract or the Government instructions subjects it to the application of the sanctions or penalties legally or contractually foreseen. 

Two. The subconcessionaire is exempted from the liability mentioned in the previous number in events of force
majeure or other facts for which the subconcessionaire is corroboratively unaccountable, but only if their punctual and cabal compliance has been effectively hindered. 

Three. Are only considered facts of force majeure, with the consequences stipulated in the next number, the
unforeseeable and unpreventable events, outside the subconcessionaire control and occurring notwithstanding its will or personal circumstances, namely acts of war, terrorism, disturbance of the public order, epidemics, nuclear radiation, fire,
lightning, serious floods, cyclones, tropical storms, earthquakes and other natural disasters affecting directly the activities integrated in the subconcession. 

Four. The subconcessionaire pledges to immediately inform the Government about the occurrence of any event of
force majeure, and as well, as soon as possible, to indicate which obligations emerging from this subconcession contract whose compliance, in its understanding, is hindered to fulfill due to such occurrence and, likewise, if that will be the case,
the measures it intends to take in order to lessen the impact of the referred event and/or normalize the compliance of such obligations. 
 Five. In case of any of the events mentioned in number three occurring, the subconcessionaire pledges to rebuild or restore as soon as possible the property to its original state, in order to
resume the adequate exploitation and operation of the games of fortune and chance and other games in casino; if the subconcessionaire has no 

  
 45 

 
economical interest in rebuilding and/or restoring the above referred property, pledges to transfer the insurance value to the Special Administrative Region of Macau. 

CHAPTER XIX 

Termination and interruption of the subconcession 
 Clause 77 
 Rescission by mutual agreement 

One. The concessionaire and the subconcessionaire can at any time rescind this subconcession contract by mutual
agreement. 
 Two. If the Government and subconcessionaire agree to rescind this subconcession contract
by mutual agreement, the concessionaire will give its agreement. 
 Three. The subconcessionaire will be
totally liable for the stoppage of the effects of any contracts in which is a party, with the Special Administrative Region of Macau and the concessionaire not assuming any liability on that matter, unless expressly agreed otherwise. 

Clause 78 

Redemption 
 One. Except if otherwise provided by law, the Government can from the twelfth year of the subconcession redeem the same by notification to the subconcessionaire by means of a prepaid registered
letter with a minimal antecedence of one year. 
 Two. With the redemption, the Special Administrative
Region of Macau will assume all the subconcessionaire rights and obligations arising from legal businesses lawfully executed by the latter before the date of the notification mentioned in the previous number. 

Three. The obligations undertaken by the subconcessionaire due to contracts it had executed, after the
notification mentioned in number one, will only be assumed by the Special Administrative Region of Macau when such contracts had previously obtained the Government authorization for their granting. 

Four. The assumption by the Special Administrative Region of Macau of obligations assumed by the subconcessionaire
is made without prejudice of the right of 

  
 46 

 
return for the obligations contracted by the subconcessionaire that go beyond the subconcession normal management, 

Five. In the event of the subconcession redemption, the subconcessionaire is entitled to a fair and reasonable
compensation corresponding to the benefits it ceased to obtain in consequence of the redemption of its Resort – Hotel – Casino enterprise as listed in the Investments Plan attached to this subconcession contract. The amount of the
compensation shall correspond to the revenues value of the mentioned enterprise attained during the fiscal year prior to the redemption’s, before interests, depreciations and amortizations, multiplied by the number of year elapsing until the
end of the subconcession. 
 Clause 79 
 Attachment 
 One. When occurs or is imminent the
stoppage or interruption, total or partial, of the subconcession exploitation by the subconcessionaire, non authorized and not due to a case of force majeure, or if serious disturbances or deficiencies occur in the subconcessionaire organization and
running or in the facilities and equipment general condition, susceptible of jeopardizing the subconcession exploitation regularity, the Government can itself replace the subconcessionaire directly or resorting to others, ensuring the subconcession
exploitation and promoting the execution of the measures necessary to guarantee the object of this subconcession contract while the stoppage or interruption lasts or the disturbance and deficiencies remain. 

Two. During the attachment, the subconcessionaire will burden the expenses incurred in the maintenance and
normalization of the subconcession exploitation, and for this purpose the Government can use the surety to guarantee the fulfillment of the subconcessionaire legal or contractual obligations and the guarantee provided by the controlling shareholder
of the subconcessionaire. 
 Three. As soon as the reasons for the attachment cease and the Government
considers fit, the subconcessionaire is notified to resume, within the period stipulated, the subconcession normal exploitation. 
 Four. If the subconcessionaire does not wish or can not resume the subconcession exploitation or if, having resumed it, the serious disturbances or

  
 47 

 
deficiencies in its organization and running still remain, the Government can unilaterally rescind it by noncompliance of this subconcession contract 

Clause 80 

Unilateral rescission 
 One. The Government can terminate the subconcession by unilateral rescission, with no need to consult the concessionaire, due to noncompliance of this subconcession contract, in case of the
subconcessionaire not complying with the fundamental obligations to which is legally or contractually bound. 

Two. Are, in special, reasons For unilateral rescission of this subconcession contract: - 

1) The deviation from the subconcession object, either by the exploitation of non-authorized games, or by the exercise of
activities excluded from the subconcessionaire corporate purpose; 
 2) The abandon of the subconcession
exploitation or its unjustified interruption for a period higher than seven consecutive days or fourteen interpolated days in a calendar year; 
 3) The total or partial assignment of the exploitation, temporary or definitive, with disregard to the provisions stipulated in the concessions regime mentioned in Clause 6; 

4) The non-payment of taxes, premiums, contributions or other retributions foreseen in the concessions regime mentioned
in Clause 6, due to the Special Administrative Region of Macau and non-impugned within the legal period; 
 5)
The subconcessionaire refusal or impossibility to resume the subconcession in the terms of number 5 of the previous clause or, when indeed resumed, remaining the situations that caused the attachment. 

6) The reiterated opposition to the exercise of supervision and inspection or repeated disobedience to the Government
decisions, namely the DICJ instructions; 
 7) The systematic non-observance of fundamental obligations
stipulated in the concessions regime mentioned in Clause 6; 
 8) The failure to provide or restore the sureties
or guarantees foreseen in this subconcession contract according to the stipulated terms and periods; 
 9) The
subconcessionaire bankruptcy or insolvency; 

  
 48 

 10) The practice of serious fraudulent activity intended to damage the
public interest; 
 11) The serious and reiterated breach of the rules for the practice of games of fortune and
chance and other games in casino or the integrity of the games of fortune and chance and other games in casino; 

12) The execution of a contract by which other entity assumes power of management over the subconcessionaire in what
concerns the exploitation of games of fortune and chance and other games in casino or the subconcession, in the whole or in part, of the subconcession or the execution of a legal business intending to attain the same purpose; 

13) The non-assignment mentioned in number ten of the Clause 60 within ninety days for a reason imputable to the
subconcessionaire controlling shareholder. 
 Three, Without prejudice of the provisions of Clause 83, in
the event of occurring one of the situations mentioned in the previous number or any other that, in the terms of this clause, may cause the unilateral rescission by noncompliance of this subconcession contract, the Government will notify the
subconcessionaire to integrally fulfill its obligations and correct or repair the consequences of its acts within a period to be stipulated, except if it will bean irreparable breach. • 

Four. If the subconcessionaire fails to fulfill its obligations, or does not correct or repair the consequences of
its acts, in the terms stipulated by the Government, the latter can unilaterally rescind this subconcession contract by informing the subconcessionaire, and can also notify such intention in writing to the entities that secured the financing of the
investments and obligations assumed by the subconcessionaire, in the terms and for the effects of the stipulated in the concession regime mentioned in Clause 6, regarding the financial capacity. 

Five. The notification to the subconcessionaire about the decision of rescission mentioned in the previous number
takes effect immediately, notwithstanding any other formality. 
 Six. In cases of founded urgency that
does not commiserate with the delays of the noncompliance remedy process foreseen in number three, the Government can, without prejudice of that process observance and the observance of the number four provisions, execute the immediate attachment of
the subconcession under the terms stipulated in the previous clause. 

  
 49 

 Seven. The unilateral rescission by noncompliance of this
subconcession contract implies the immediate and gratuitous reversion to the Special Administrative Region of Macau of the respective casinos, and as well the equipment and implements affected to the games, even being outside their premises.

 Clause 81 
 Forfeiture 
 One. This subconcession contract
forfeits on the date of the final term foreseen in Clause 80, ceasing the contractual relations existent between the Parties, without prejudice of the clauses of this subconcession contract persisting beyond that date. 

Two. In case of forfeiture in the terms of the previous number, the subconcessionaire will be fully liable for
termination of the effects of any contracts in which is a party, and the Special Administrative Region of Macau will not assume any liability in that matter. 
 CHAPTER XX 
 Revisions and alterations to the contract 

Clause 82 

Revisions of the subconcession contract 
 One. This subconcession contract can be revised after negations between the concessionaire and the subconcessionaire, under the legal terms, without prejudice of the Government authorization.

 Two. The concessionaire gives at once its agreement to the revisions to this subconcession contract
that may be agreed between the Government and the subconcessionaire when the same will not involve any increase of its responsibility. 
 Three. The revision of this subconcession contract, and as well any addenda, shall comply with the formalities set forth by the Government. 

CHAPTER XXI 

Pre-litigation phase 
 Clause 83 
 Advice during pre-litigation phase 

  
 50 

 One. The Government, the concessionaire and the subconcessionaire, or
the Government and the subconcessionaire, or the Government and the concessionaire pledge to ask for advice whenever questions or divergences arise amongst them on matter of validity, application, execution, interpretation or integration of rules by
which this subconcession contract is governed. 
 Two. The questions arisen do not exonerate the
subconcessionaire and/or the concessionaire from the punctual and cabal compliance of this subconcession contract and the Government directions that within its scope are transmitted, nor allow any interruption of any aspect of the subconcessionaire
activity that shall continue to be carried out in the terms in force at the time of the question submission. 

Three. The provisions of the previous number relatively to the compliance of the Government directions by the
subconcessionaire and/or the concessionaire apply also to successive directions about the same matter, even if issued after the date the advice has been asked, if the first of that successive directions had been transmitted to the subconcessionaire
and/or the concessionaire, respectively, prior to that date. 
 CHAPTER XXII 

Final Provisions 

Clause 84 

Securing licenses, permits or authorizations 

One. This subconcession contract does not exempt the subconcessionaire from applying, paying or obtaining all
licenses, permits or authorizations necessary for the operation of any aspect of its activity or the compliance of the obligations foreseen in this subconcession contract, and as well to observe or fulfill all the requirements necessary to secure
and maintain their validity. 
 Two. The subconcessionaire must inform immediately the Government if any
licenses, permits or authorizations referred in the previous number are withdrawn, forfeit, discontinued or revoked or by any reason cease to have effect, stating the measures it took or will take to restore or reactivate such licenses, permits or
authorizations. 

  
 51 

 Three. No clause of this subconcession contract can be considered as
substitutive of the need to obtain any foreseen license, permit or legal or contractual authorization. 
 Clause 85

 Industrial and intellectual property rights 

One. The subconcessionaire pledges to respect in the exercise of its activities, the industrial and intellectual
property rights under the terms of the law in force in the Special Administrative Region of Macau, being its exclusive responsibility the effects resulting from their breach. 

Two. The licenses, permits and authorizations granted to the subconcessionaire, namely those relative to the
compliance of the Investments Plan attached to this subconcession contract, presuppose that the subconcessionaire respected all the industrial and intellectual property rights. 

Three. The subconcessionaire cedes gratuitously to the Special Administrative Region of Macau all its studies,
projects, plans, drawings, documents and other materials, of whatever nature, that may be necessary or useful for the execution of its operations under the terms of this subconcession contract, or the exercise of its rights under its terms.

 Four. Upon request of the Special Administrative Region of Macau, the subconcessionaire pledges to
prepare any type of document or statement in order to confirm or register the rights mentioned in the previous number. 
 Five. If the subconcessionaire does not solve any existent litigations with third parties relative to eventual infringements of the industrial or intellectual property rights granted or to be
granted to the Special Administrative Region of Macau under the terms of this clause, the Special Administrative Region of Macau can always intervene in their defense, undertaking the subconcessionaire to provide all the assistance it may be
requested for the effect. 
 Clause 86 
 Notifications, communications, notices, 
 authorizations and approvals

  
 52 

 One. The notifications, communications, notices, authorizations and
approvals referred in this subconcession contract, unless otherwise stipulated, shall be in writing and delivered: - 
  

	 	1)	 By hand, and corroborated by docket; 

  

	 	2)	 By fax, and corroborated by transmittal receipt; 

  

	 	3)	 By prepaid registered letter. 

 Two. The authorizations to be granted by the Government are always previous and can impose conditions. 
 Three. The lack of reply to a request for authorization and approval or other request, filed by the subconcessionaire and/or the concessionaire, has as effect its refusal. 

Four. Are considered, for effects of this subconcession contract, as Government, concessionaire and
subconcessionaire domiciles, the following addresses and fax reception posts: - 
 Government of the Special
Administrative Region of Macau: - 
 Gaming Inspection and Coordination Department 

Avenida da Praia Grande, numbers 762-804, China Plaza Building, No. 762-804, 21st floor, Macau, 

Fax: 370296 
 Concessionaire: Sociedade de Jogos de Macau, S.A 
 Head Office: Avenida de Lisboa, numbers 2-4, Hotel Lisboa, 9th Floor, parish of Sé, Macau 
 Fax:570082

 Subconcessionaire: MGM Grand Paradise, S. A. 

Head Office: Avenida da Praia Grande, n° 759, 5th floor, Macau 

Fax: 553098 
 Five. The Government, the concessionaire and the subconcessionaire can change the addresses and fax reception posts stated in the previous number by previous communication to the other parties.

  
 53 

 Clause 87 
 Prohibition of restrictive practices of the competition 

One. The subconcessionaire pledges to carry its activity in an honest and loyal competition, respecting the
principles inherent to an economy of market. 
 Two. The subconcessionaire pledges to not enter into any
agreement nor exert deliberated practices, in any form, that include, in conjunct with concessionaires, other subconcessionaires or companies managing concessionaries in what concerns the exploitation of games of fortune and chance and other games
in casinos, that operate in the Special Administrative Region of Macau or with companies belonging to the respective groups, susceptible of hindering, restricting or misrepresenting the competition. 

Three. The subconcessionaire pledges to not abusively exploit a dominant position in the market or in a
substantial part of the market, susceptible of hindering, restricting or misrepresenting the competition. 
 Clause 88

 Junkets 
 The subconcessionaire is liable before the Government for the activity conducted in the casinos and other gambling areas by the junkets registered with the subconcessionaire, and as well their directors
and collaborators, and shall for the effect supervise their activity. 
 Clause 89 

Promotion of the subconcessionaire enterprises 

One. The subconcessionaire pledges to carry out, in and out of the Special Administrative Region of Macau
advertising and marketing campaigns of its enterprises, namely its casinos. 
 Two. The Government and
the subconcessionaire pledge to coordinate its advertising and marketing campaigns with the actions and campaigns to promote Macau abroad. 
 Three. The subconcessionaire pledges to not allow the use of images or large contextual references of its casinos and other enclosures and outbuildings affected to the

  
 54 

 
subconcession exploitation, on any Internet sites or addresses or in any other place intended to promote interactive games, without the Government authorization. 

Clause 90 

Elements integrated in the subconcession contract 

The executive summary presented by the subconcessionaire to the Government is considered integrated in this subconcession
contract, in all that is not explicitly or implicitly contradicted by it. 
 Clause 91 

Chips to be used in the subconcession exploitation 

One. The subconcessionaire pledges to comply with the Government directions in regard of the issue and circulation
of chips, independently of their type or nature. 
 Two. Without prejudice of (the Government ordering a
maximum limit, the number of chips to be issued is not subjected to the Government authorization. 
 Three.
The subconcessionaire pledges to guarantee the reimbursement of the chips in circulation, either in cash or cheque or equivalent credit order. 
 Four. The subconcessionaire pledges to keep a solvency ratio, to provide funds and other prudential rules to be stipulated from time to time by the Government on the total of chips issued, in cash
or titles of high level of liquidity, to secure their prompt payment. 
 Clause 92 

Confidentiality 
 One. The documents created by the Government, the concessionaire and the subconcessionaire in compliance with the provisions in the concessions regime mentioned in Clause 6 or in this subconcession
contract are confidential and can only be made available to third parties with the Government authorization. 

Two. The Government, the concessionaire and the subconcessionaire pledge to take the necessary steps to guarantee
that their staffs are bound to the duty of secrecy. 
 Three. The Government, the concessionaire and the
subconcessionaire pledge to impose the duty of secrecy to other persons that had or may have access to confidential documents, namely through consultancy, services or other contracts. 

  
 55 

 Four. The concessionaire and the subconcessionaire pledge to maintain
confidential the full contents of this subconcession contract, including all and any documents that can make possible the knowledge of its contents, being only revealed to others by Government authorization. 

Five. Are excepted from the stipulated in number one and the previous number, all documents, information or data
justifiably requested by a competent judicial entity, by an agency regulating the exploitation of games of fortune and chance and other games in casino activity or an agency regulating the securities markets, being however the concessionaire or the
subconcessionaire, according to the case, bound to impart that fact to the Government. 
 Six. Are also
excepted from the stipulated in numbers one and four all documents, information or data the concessionaire or the subconcessionaire, according to the case, considers necessary to submit to the financing entity, investor, lawyer, accountant, auditor
or consultant, although imposing the same duty of secrecy in regard of third parties. 
 Seven. Upon the
authorization foreseen in number four, the concessionaire or the subconcessionaire, according to the case, pledge also to take all the necessary steps to guarantee that other persons or entities that had or may have knowledge of the contents of this
subconcession contract, including all and any documents that can make possible the knowledge of its contents, are bound to this duty of secrecy. 
 Clause 93 
 Complaints book 

One. The subconcessionaire pledges to create and maintain available to the clients of the casinos and other
gambling areas a complaints book for complaints relative to the exploitation of games of fortune and chance and other games in casino. 
 Two. The subconcessionaire pledges to post a notice in a visible place of the casinos and other gambling areas, relative to the existence of the complaints book. 

Three. The subconcessionaire pledges to send to the Government, within forty-eight hours, a copy of the complaints
recorded in the complaints book, together with a report of the subconcessionaire relative to those same complaints. 

  
 56 

 Clause 94 
 Termination of the concession 
 One. The termination
of the concession granted to the concessionaire before the period mentioned in Clause 8 of this subconcession contract, does not imply the termination of the subconcession granted by this subconcession contract. 

Two. In the case mentioned in the previous number, the Government will arrange for the concessionaire position in
this subconcession contract to be assumed by another concessionaire for the exploitation of games of fortune and chance and other games in casino. 
 CHAPTER XXIII 
 Interim Provisions 

Clause 95 

Professional training plans 
 One. The subconcessionaire pledges to develop plans relative to the professional training of the staffs that will work in the activities integrated in the subconcession, within the period to be
stipulated by the Government. 
 Two. The subconcessionaire pledges to deliver to the Government, within
the stipulated time, any other additional documents or information relative to the plans mentioned in the previous number. 

Clause 96 

Deposit of the capital stock 
 The subconcessionaire pledges to keep its capital stock deposited with a local credit institution or with a branch or subsidiary of a credit institution authorized to trade in the Special Administrative
Region of Macau and to not use it before the beginning of its activity, being considered the subconcessionaire beginning of activity the date to be stipulated by the Government by dispatch of the Secretary for Economy and Finances. 

Clause 97 

Designated managing director 
 One. The Government will inform the subconcessionaire, within fifteen days from the granting of this subconcession contract, if authorizes the person listed in the

  
 57 

 
Annex I of the Administrative Regulation number 26/2001, delivered by the subconcessionaire, to be the subconcessionaire managing director. 

Two. The provisions of the numbers one and two of the Clause 21 will apply to the first delegation of management
to a managing director after the granting of this subconcession contract. 
 Clause 98 

Bank accounts 
 The subconcessionaire pledges to submit to the Government, within seven days from the granting of this subconcession contract, a document listing all its bank accounts and respective balances. 

Clause 99 

Declaration regarding the duty of cooperation 

The subconcessionaire pledges to endeavor to obtain and deliver to the Government, within fifteen days from the granting
of this subconcession contract, a declaration signed by each of the shareholders holding 5% or more of its capital stock, its directors and executive staffs with relevant positions ion the casino, and as well its controlling shareholders, declaring
that they accept to subject to a special duty of cooperation with the Government and pledge to present any documents and provide any information, data, authorizations or evidence they will be requested for that effect. 

Clause 100 

Fixed and variable part of the premium 
 One. The payment of the fixed part of the annual premium foreseen in Clause 47, in the respective proportion, will only be due from the twenty sixth day of June of the year two thousand seven
except if, until that date, the subconcessionaire will start the exploitation of a casino or gambling area in the Resort - Hotel - Casing enterprise mentioned in the Investments Plan attached to this subconcession contract, then the payment becomes
due since that moment. 
 Two. The payment of the variable part of the annual premium foreseen in Clause
47, will only be due from the beginning of the exploitation of the games of fortune and chance or other games in casino, whether in temporary facilities or in the enterprise mentioned in the previous number; for effects of the computation of the

  
 58 

 
variable part of the annual premium, the subconcessionaire pledges to submit to the Government, until ten days before the opening of its first casino or gambling area, a list staling the number
of tables and electrical or mechanical machines, including slot machines, that intends to exploit that year, and as well the respective location. 
 Three. If the subconcessionaire opens its first casino or gambling area in temporary facilities, the sum relative to the variable part of the annual premium can not be less than the sum attained by
the permanent exploitation of 20 (twenty) tables reserved to certain games and gamblers, namely exploited in special gambling rooms or areas, and 20 (twenty) tables non reserved to certain games and gamblers, until the beginning of the exploitation
of a casino or gambling area in the enterprise mentioned in number one. 
 Four. The sums relative to the
variable part of the annual premium mentioned in number five of the Clause 47 will be object of revision between the Government and the subconcessionaire from the third year of the granting of this subconcession contract. 

Clause 101 

Approval of the articles of association and agreements between shareholders 

The Government shall, within sixty days from the granting of this subconcession contract, notify the subconcessionaire
whether approves its articles of association, and as well its agreements between shareholders. 
 Clause 102 

Mandates and powers of attorney 
 The subconcessionaire pledges to inform the Government, within fifteen days from the granting of this subconcession contract, about all and any mandates or powers of attorney existent at the time of the
granting of this subconcession contract bestowing, based on a stable relation, powers of the board of directors’ competence to execute businesses regarding the practice of the company on behalf of the subconcessionaire, with exception of powers
for the conduction of routine acts, namely with public offices or departments, for effects of authorization, or to deliver, within the same period, a declaration attesting their inexistence. 

  
 59 

 Clause 103 
 Actual participation in the exploitation of games of fortune and chance 

and other games in casino in other jurisdictions 

The subconcessionaire pledges to inform the Government, within fifteen days from the granting of this subconcession
contract, about the actual participation of any of its directors, a controlling shareholder, including the last controlling shareholder, or any holder of corporate participation, when it corresponds, directly or indirectly, to a value equal or
higher than 10% of its capital stock, in the exploitation of games of fortune and chance and other games in casino, even if only through a management contract, in any other jurisdiction. 

Clause 104 

Composition of the subconcessionaire corporate bodies 

The subconcessionaire pledges to inform the Government, within seven days from the granting of this subconcession
contract, about the composition, at the time of the granting of this subconcession contract, of the subconcessionaire board of directors, general meeting board, the statutory audit board and other corporate bodies. 

Clause 105 

Shareholding and capital stock structure 
 One. The subconcessionaire pledges to send to the Government, within seven days from the granting of this subconcession contract, a document stating the subconcessionaire shareholding structure, at
the time of the granting of this subconcession contract. 
 Two. The subconcessionaire pledges to send to
the Government, within seven days from the granting of this subconcession contract, a document stating the capital stock structure of the collective bodies, maxime companies, holding 5% or more of the subconcessionaire capital stock, and as
well the capital stock structure of the collective bodies holding 5% or more of the latter’s capital stock, and so on, until the individual and collective bodies that are last shareholders, at the time of the granting of this subconcession
contract. 

  
 60 

 Three. The subconcessionaire pledges to deliver to the Government,
within fifteen days from the granting of this subconcession contract, the declarations mentioned in the number two of Clause 19, relative to the year two thousand two. 
 Clause 106 
 More favorable conditions 

If the Special Administrative Region of Macau, in virtue of the granting of new concessions for the exploitation of games
of fortune and chance and other games in casino whose conditions will be, in global terms, more favorable than those foreseen in this subconcession contract, the Government undertakes to extend them to the subconcessionaire by alteration of this
subconcession contract. 
 Clause 107 
 Revision of the contributions percentages 
 The percentages
of the contributions mentioned in Clauses 48 and 49 herein, will be object of revision between the Government and the subconcessionaire during the year two thousand ten. 
 Clause 108 
 Validity 

This subconcession contract, executed in both official languages, becomes valid on the twentieth day of April of the year
two thousand five. 
 After read by the Grantors and its contents having been explained to them, it is going to
be signed by them, because it corresponds to their will, in the quality in which they grant. 
 This
subconcession contract is executed in triplicate, being one copy to the concessionaire, another to the subconcessionaire and the other to the Government of the Special Administrative Region of Macau. 

  
 61 

 Macau, on 19th April 2005. 
 For and on behalf of the Concessionaire 
 (Signed) 

For and on behalf of the Subconcessionaire  
 (Signed) 
  

					
	 Carlos Duque Simōes Notary Private Office I hereby certify the above signature of Ho Hung Sun,
Stanley, also known as Stanley Ho, signed before me in the quality of Managing Director of the “SOCIEDADE DE JOGOS DE MACAU, S. A.”, being his identity, quality and sufficiency of powers for the act of my personal knowledge. Macau,
19th April 2005.

 
 Account N° 14 The Notary MOP$14.00

(signed)
	 		 	 Account n° 10
                                 Emol. $28.00 I hereby certify the above signatures of
Ho, Pansy Catilina Chiu King, also known as Pansy Ho and Gary Neil Jacobs, signed before me in the quality of directors of the company “MGM GRAND PARADISE, S. A.”, with powers for the act, being their identities, quality and powers of my
personal knowledge.
  
 Macau, Frederico Rato
Notary Private Office, on. 19th April 2005.
  

The Notary

(signed)

  
 62 

 ANNEX TO THE SUBCONCESSION CONTRACT 

INVESTMENTS PLAN 
 Without prejudice of the provisions of Clause 39 of this subconcession contract, the subconcessionaire pledges to execute, namely:- 

One Resort – Hotel – Casino complex, to be finished and opened to the public in December 2007. 

Global value: MOP4,000,000,000.00 (four billion Patacas), to be spent within the maximum period of 7 (seven) from the
granting of this subconcession contract. 

  
 63 

 LAWYERS [illegible] 

To all to whom these presents shall come, 
 Adelino Correia, Lawyer, 
 with professional address at
3rd floor, 759 Avenida da Praia Grande, in Macau, Special
Administrative Region of the People’s Republic of China, DO HEREBY CERTIFY that on this date appeared before me Manuela Nazaré Ribeiro, Registered Translator, of Portuguese nationality, holder of the Licence number 50881358, who
presented a document translated into English relative to a photocopy of a document written in Portuguese and attached herein, who under oath declared that it is a true and accurate translation of the said document. 

 

	
	In TESTIMONY whereof I have hereunto subscribed my name on this 27th day of September in the year of Our Lord Two thousand and five.

  

	
	
	/s/ Adelino Correia
	Adelino Correia
	Lawyer
	Macau SAR
	People’s Republic of China
	27 SEP 2005

  
 64

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