Document:

Exhibit 10.61

TAX INDEMNIFICATION
AGREEMENT

TAX INDEMNIFICATION AGREEMENT, dated as of December ___, 2004 and effective as of
the closing of the Restructuring (as defined herein) (the “Agreement”),
among Las Vegas Sands, Inc., a Nevada corporation (the “Company”), the
persons listed on Schedule A attached hereto (individually, a “Stockholder”
and, collectively, the “Stockholders”), and, solely for purposes of
being bound by Section 3.1 hereof, Las Vegas Sands Corp, a Nevada corporation
(“Holdco”), the Venetian Casino Resort, LLC (the “Venetian”), and Interface
Group Holding Company, Inc. (“Interface”).

WHEREAS, the Company holds 100% of the outstanding common interests in the
Venetian, and Interface holds 100% of the outstanding preferred interest in the
Venetian;

WHEREAS, the Company is and has been an “S corporation” (as defined
herein) since April 29, 1988;

WHEREAS, it is anticipated that the Company’s election to be an
S corporation will terminate, in accordance with Section 1362(d) of the
Internal Revenue Code of 1986, as amended (the “Code”) as a result of
the merger of a wholly-owned subsidiary of Holdco with and into the Company
with the Company becoming a wholly-owned subsidiary of Holdco (the “Restructuring”);

WHEREAS, Interface was an S corporation prior to the contribution of 100% of
the total outstanding stock of Interface to the Company pursuant to the
Contribution Agreement, dated as of July 29, 2004, among Sheldon G. Adelson and
the Company (the “Interface Contribution”);

WHEREAS, from and after the date of the Interface Contribution, Interface has
elected to be treated as a Qualified Subchapter S Subsidiary (a “QSub”) for
federal income tax purposes;

WHEREAS, it is anticipated that Interface’s QSub election will terminate, in
accordance with Treasury Regulation §1.1361-5(a), as a result of the
Restructuring;

WHEREAS, Holdco contemplates a public offering (the “Offering”) of its
stock;

WHEREAS, it is anticipated that the Restructuring will occur prior to and in
contemplation of the Offering;

WHEREAS, the closing of the Restructuring is a condition to the effectiveness
of this Agreement;

 

 

WHEREAS, in connection with the Offering, the Company and Stockholders wish to
provide for certain indemnification with respect to the prior status of the
Company and Interface as S corporations.

NOW THEREFORE, in consideration of the covenants and agreements
hereinafter set forth and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, and intended to be legally bound
hereby, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

1.1           Definitions.  The following terms as used herein have the
following meanings:

“Applicable Tax
Percentage” means the highest aggregate effective marginal rate of federal,
state and local income tax or, when applicable, alternative minimum tax, to
which any Stockholder subject to the highest marginal rate of tax would be
subject in the relevant taxable period of determination, taking into account
only that Stockholder’s share of income and deductions attributable to their
interest in the Company and/or Interface, as applicable, during such relevant
taxable period.  For the avoidance of
doubt, the determination of the Applicable Tax Percentage shall take into
account any difference in the applicable rate of federal, state and local
income tax attributable to the character each relevant income item (such as
capital gain as opposed to ordinary income).

“Final Determination”
means a settlement, compromise or other agreement with the Internal Revenue
Service or the relevant state or local Governmental Authorities, whether
contained in an Internal Revenue Service Form 870 or other comparable form, or
otherwise, or such procedurally later event, such as a closing agreement with
the Internal Revenue Service or the relevant state and local Governmental
Authorities, an agreement contained in Internal Revenue Service Form 870AD or
other comparable form, an agreement that constitutes a determination under
Section 1313(a)(4) of the Code, a deficiency notice with respect to which the
period for filing a petition with the Tax Court or the relevant state or local
tribunal has expired or a decision of any court of competent jurisdiction that
is not subject to appeal or as to which the time for appeal has expired.

“Interface Adjustment”
shall mean (i) any adjustment, pursuant to a Final Determination, to any tax
return of Interface for any particular S Taxable Year, or (ii) the filing of an
amended return for any particular S Taxable Year, in each case that results in
an increase in the net income of Interface attributable to its interest in the
Venetian (or results in a change in the character of such income for tax
purposes) and that is allocable to a Stockholder for such S Taxable Year as
determined by reference to the tax return originally filed (or the most recent
amended return filed) by the Company and/or Interface, as applicable, for such
S Taxable Year.

2

 

“LVSI Adjustment”
shall mean (i) any adjustment, pursuant to a Final Determination, to any tax
return of the Company for any particular S Taxable Year, or (ii) the filing of
an amended return for any particular S Taxable Year, in each case that results
in an increase in the net income of the Company (or results in a change in the
character of such income for tax purposes) that is allocable to a Stockholder
for such S Taxable Year as determined by reference to the tax return originally
filed (or the most recent amended return filed) by the Company for such S
Taxable Year.

“S Corporation”
shall have the meaning set forth in Section 1361(a)(1) of the Code.

“S Taxable Year”
shall mean, with respect to each of the Company and Interface, any taxable
period (or portion thereof) of such entity during which it was an
S corporation.  For the avoidance
of doubt, S Taxable Year shall not include any taxable period (or portion
thereof) of Interface during which it was a QSub.

“S Termination Year”
means the taxable year of the Company that includes the Termination Date.

“Short S Taxable Year”
shall mean that portion of the S Termination Year beginning on the first day of
such taxable year and ending on the day immediately preceding the Termination
Date.

“Tax Loss” shall
mean, with respect to any Stockholder for any particular taxable period (or
portion thereof), the excess, if any, of (x) the product of (i) the net income
of such Stockholder determined after taking into account any applicable
Interface Adjustment or LVSI Adjustment, as the case may be (but determined
without taking into account any other items of income, gain, loss, deductions
or other tax attributes of such Stockholder during such period or available for
use during such period), and (ii) the Applicable Tax Percentage for such
taxable period (or portion thereof) determined after taking into account any
changes in the character of the net income of Interface or the Company, as the
case may be, pursuant to an Interface Adjustment or an LVSI Adjustment, over
(y) the product of (iii) the net income of such Stockholder determined without
taking into account such Interface Adjustment or LVSI Adjustment (and
determined without taking into account any other items of income, gain, loss,
deductions or other tax attributes of such Stockholder during such period or
available for use during such period), and (iv) the Applicable Tax Percentage
for such taxable period (or portion thereof) determined without taking into
account such Interface Adjustment or LVSI Adjustment; provided, however, that
the computation of Tax Loss shall also take into account the deductibility of
state and local taxes for federal income tax purposes.  Tax Losses shall also include any interest
and penalties attributable to the excess of (x) over (y) described above.  For the avoidance of doubt, if during any
particular taxable period the amounts described in (y) equal or exceed the
amounts described in (x), the Stockholder shall be deemed to have no Tax Loss
with respect to such Interface Adjustment or LVSI Adjustment for such taxable
period.

3

 

“Taxing Authority”
means the IRS or any comparable state, local or foreign taxing authority.

“Termination Date”
means the date on which the S Corporation status of the Company will terminate
as a result of the Company becoming a member of Holdco’s consolidated group in
accordance with Treasury Regulation §1.1502-76(b)(1)(ii)(A).

 

ARTICLE II

OBLIGATIONS

2.1           Company Indemnification of
Stockholders for LVSI Income.  On or
before March 31, 2005, the Company shall make a payment to each Stockholder
equal to the excess of (i) the product of (x) the Applicable Tax Percentage and
(y) the net income of the Company as determined by reference to the Company’s
Internal Revenue Service Form 1120S the Short S Taxable Year, over (ii) any
prior distributions made to such Stockholder by the Company with respect to
such net income.

2.2           Company’s Indemnification of
Stockholders for LVSI Adjustments. 
In the event of an LVSI Adjustment, the Company hereby agrees to pay to
each of the Stockholders an amount equal to such Stockholder’s Tax Loss
attributable to such LVSI Adjustment. 
With respect to states in which the Company has previously filed
composite returns including a Stockholder, the foregoing obligation shall be
accomplished by the Company, as necessary, re-filing the composite returns and
paying directly any additional amounts owed.

2.3           Company’s Indemnification of
Stockholders for Interface Adjustments. 
In the event of an Interface Adjustment, the Company hereby agrees to
pay to each of the Stockholders an amount equal to such Stockholder’s Tax Loss
attributable to such Interface Adjustment. 
With respect to states in which Interface has previously filed composite
returns including a Stockholder, the foregoing obligation shall be accomplished
by Interface, as necessary, re-filing the composite returns and paying directly
any additional amounts owed.

2.4           Gross Up for Additional Tax.  In the event that any amounts paid to a
Stockholder pursuant to Sections 2.1, 2.2, 2.3 or 3.1 are determined, pursuant
to a Final Determination, to constitute taxable income to a Stockholder for
federal, state or local tax purposes, the Company hereby agrees to increase any
payment to such Stockholder to the extent necessary to ensure that, after
taking into account any income taxes attributable to the receipt of such
amounts (including, without limitation, any income taxes attributable
additional amounts paid to a Stockholder pursuant to this Section 2.4),  the Stockholder shall have received a net
sum equal to what such Stockholder would have received if the amounts payable
pursuant to this Article 2 or Section 3.1 were not treated as taxable income to
such Stockholder for federal, state or local tax purposes, as applicable.

4

 

2.5           Payment.  Any payment required to be made pursuant to
this Agreement shall be paid within thirty (30) days after receipt of written
notice from the Stockholder that a payment is due hereunder.

ARTICLE III

CONTESTS/COOPERATION

3.2           Cooperation.   If, in the course of any audit or other administrative
proceeding relating to a tax return of a Stockholder, Interface, the Company,
or the Venetian, as the case may be, any Taxing Authority proposes any adjustment
that, if determined pursuant to a Final Determination, would constitute an
Interface Adjustment or an LVSI Adjustment (a “Proposed Adjustment”),  the Stockholder, Interface, the Company or
the Venetian, as applicable, will provide notice of such Proposed Adjustment to
the other relevant parties hereto.  The
parties shall make available to each other, as reasonably requested, and to any
Taxing Authority all information, records or documents relating to any
liability for taxes covered by this Agreement and shall preserve such
information, records and documents until the expiration of any applicable
statute of limitations or extensions thereof. 
The Company shall reimburse the Stockholders for all reasonable
out-of-pocket costs incurred in producing such information.  In the case of any Proposed Adjustment in
connection with the audit or other administrative proceeding relating to a tax
return of any Stockholder, if such Stockholder elects to pay the tax associated
with such Proposed Adjustment and pursue a refund of such amount in the forum
of the Stockholder’s choice, the Company shall, promptly after receiving
written notice thereof from the Stockholder, pay an amount to such Stockholder
equal to the amount that would be payable by the Company to such Stockholder
pursuant to Article 2 hereof if the Proposed Adjustment was an Interface
Adjustment or an LVSI Adjustment pursuant to a Final Determination; provided,
however, that if (x) there is a Final Determination that the Interface
Adjustment or the LVSI Adjustment, as the case may be, is less than the
Proposed Adjustment, the Stockholder shall promptly refund any such difference
to the Company on an after tax basis, or (y) there is a Final Determination
that the Interface Adjustment or the LVSI Adjustment is greater than the Proposed
Adjustment, the Company shall promptly pay to the Stockholder an amount equal
to such excess in a manner consistent with Article 2.  The Stockholder, Interface, the Company or the Venetian, as
applicable, shall promptly provide the other relevant parties hereto with a
copy of any official document evidencing a Final Determination.   Holdco shall cause Interface, the Company
and the Venetian to perform their respective obligations under this Section 3.1
and shall provide such assistance to any Stockholder as may be reasonably
requested by such Stockholder.

ARTICLE IV

 

MISCELLANEOUS

4.1           Counterparts.  This Agreement may be executed in several
counterparts, each of which, when executed, shall be deemed to be an original,
but all of 

5

 

which counterparts
collectively shall constitute a single instrument representing the agreement
among the parties hereto.

4.2           Construction of Terms.  Nothing herein expressed or implied is
intended, or shall be construed, to confer upon or give any person, firm or
corporation, other than the parties hereto and their respective successors and
permitted assigns, any rights or remedies under or by reason of this Agreement.

4.3           Governing Law.  This Agreement and the legal relations
between the parties hereto shall be governed by and construed in accordance
with the substantive laws of the state of New York without regard to any choice
of law rules of such state.

4.4           Amendment and Modification.  This Agreement may be amended, modified or
supplemented only by a writing executed by all the parties hereto.

4.5           Assignment.  Except by operation of law or in connection
with the sale of all or substantially all the assets of a party, this Agreement
shall not be assignable, in whole or in part, directly or indirectly, by the
Stockholders without the written consent of the Company or by the Company
without written consent of the Stockholders. 
Any attempt to assign any rights or obligations arising under this
Agreement without such consent shall be void. 
The provisions of this Agreement shall be binding upon and inure to the
benefit of, and be enforceable by, the parties hereto and their respective
successors and permitted assigns.

4.6           Interpretation.  The title, article and section headings
contained in this Agreement are solely for the purpose of reference, are not
part of the agreement of the parties, and shall not in any way affect the
meaning or interpretation of this Agreement.

4.7           Severability.  In the event that any one or more of the
provisions of this Agreement shall be held to be illegal, invalid or
unenforceable in any respect, the same shall not in any respect affect the
validity, legality or enforceability of the remainder of this Agreement, and
the parties shall use their best efforts to replace such illegal, invalid or
unenforceable provision with an enforceable provision approximating, to the
extent possible, the original intent of the parties.

4.8           Entire Agreement.  This Agreement embodies the entire agreement
and understanding of the parties hereto in respect to the subject matter
contained herein.  There are no
representations, promises, warranties, covenants or undertakings other than
those expressly sat forth herein.  This
Agreement supersedes all prior agreements and understandings between the
parties with respect to such subject matter.

4.9           Further Assurances.  Subject to the provisions of this Agreement,
the parties shall acknowledge such other instruments and documents and take all
other actions that may be reasonably required in order to effectuate the
purposes of this Agreement.

 

6

 

4.10         Waivers, Etc.  No failure or delay on the part of any party
in exercising any power or right under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power or
any abandonment or discontinuance of steps to enforce such right or power
preclude any other or further exercise thereof or the exercise of any other
right or power.  No waiver of any
provision of this Agreement nor consent to any departure by the parties
therefrom shall in any event be effective unless it shall be in writing, and
then such waiver or consent shall be effective only in the specific instance
and for the purpose for which it was given.

4.11         Set-off.  All payments to be made by the Company under
this Agreement shall be made without set-off, counterclaim or withholding, all
of which are expressly waived.

4.12         Change of Law.  If, due to any change in applicable law or
regulations or the interpretation thereof by any court or other governing body
having jurisdiction subsequent to the date of this Agreement, performance of
any provision of this Agreement shall be impracticable or impossible, the
parties shall use their best efforts to find an alternative means to achieve
the same or substantially the same results as are contemplated by such
provision.

4.13         Notices.  All notices under this Agreement shall be
validly given if in writing and delivered personally or sent by registered
mail, postage prepaid to the Company at:

Las Vegas Sands
Corp.

3355 Las Vegas Boulevard South

Las Vegas, Nevada 89109

Attention:  General Counsel

Telephone: (702) 414-4409

or at such other address as any party may, from time to time, designate
in a written notice given in a like manner. 
Notice given by mail shall be deemed delivered five calendar days after
the date mailed.

 

(Remainder of this page is intentionally left blank)

7

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.

	
   

  	
  LAS VEGAS SANDS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  LAS VEGAS SANDS CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  STOCKHOLDERS OF LAS VEGAS SANDS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Sheldon G. Adelson

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  William P.
  Weidner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Bradley H. Stone

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Robert G.
  Goldstein

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  David Friedman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Charles D.
  Forman

  

 

 

8

 

 

	
   

  	
   

  
	
   

  	
  Dan Raviv

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Harry D. Miltenberger

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Richard Heller

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Stuart Mason

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Jack Braman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FORMER STOCKHOLDER OF INTERFACE GROUP HOLDING COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Sheldon G. Adelson

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 

9Exhibit 10.63

 

Las Vegas Sands, Inc.

Deferred Compensation
Plan

Master Plan Document

 

 

Adopted
November 18, 2004

 

 

Effective
January 1, 2005

 

 

Copyright
© 2004

By Clark Consulting, Inc.

Executive Benefits Practice

All Rights Reserved

 

 

TABLE
OF CONTENTS

 

	
  ARTICLE 1

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
  Selection, Enrollment, Eligibility

  	
   

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Selection by Committee

  	
   

  
	
  2.2

  	
  Enrollment and Eligibility
  Requirements; Commencement of Participation

  	
   

  
	
  2.3

  	
  Termination of a Participant’s Eligibility

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
  Deferral Commitments/Company Contribution
  Amounts /Vesting/Crediting/Taxes

  	
   

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  Minimum Deferrals

  	
   

  
	
  3.2

  	
  Maximum Deferral

  	
   

  
	
  3.3

  	
  Election to Defer; Effect of
  Election Form

  	
   

  
	
  3.4

  	
  Withholding and Crediting of
  Annual Deferral Amounts

  	
   

  
	
  3.5

  	
  Company Contribution Amount

  	
   

  
	
  3.6

  	
  Crediting of Amounts afterBenefit Distribution

  	
   

  
	
  3.7

  	
  Vesting

  	
   

  
	
  3.8

  	
  Crediting/Debiting of Account Balances

  	
   

  
	
  3.9

  	
  FICA and Other Taxes

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
  Scheduled Distribution; Unforeseeable
  Financial Emergencies

  	
   

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Scheduled Distribution

  	
   

  
	
  4.2

  	
  Other Benefits Take Precedence
  Over Scheduled Distributions

  	
   

  
	
  4.3

  	
  Withdrawal Payout/Suspensions
  for Unforeseeable Financial Emergencies

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
  Change In Control Benefit

  	
   

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Change in Control
  Benefit

  	
   

  
	
  5.2

  	
  Payment of Change
  in Control Benefit

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
  Retirement Benefit

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Retirement Benefit

  	
   

  
	
  6.2

  	
  Payment of Retirement Benefit

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
  Termination Benefit

  	
   

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Termination Benefit

  	
   

  
	
  7.2

  	
  Payment of Termination Benefit

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
  Short-Term Disability Waiver; Disability
  Benefit

  	
   

  

 

i

 

	
  8.1

  	
  Short-Term Disability Waiver

  	
   

  
	
  8.2

  	
  Disability Benefit

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
  Death Benefit

  	
   

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  Death Benefit

  	
   

  
	
  9.2

  	
  Payment of Death Benefit

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
  Beneficiary Designation

  	
   

  
	
   

  	
   

  	
   

  
	
  10.1

  	
  Beneficiary

  	
   

  
	
  10.2

  	
  Beneficiary Designation; Change;
  Spousal Consent

  	
   

  
	
  10.3

  	
  Acknowledgement

  	
   

  
	
  10.4

  	
  No Beneficiary Designation

  	
   

  
	
  10.5

  	
  Doubt as to Beneficiary

  	
   

  
	
  10.6

  	
  Discharge of Obligations

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  	
  Leave of Absence

  	
   

  
	
   

  	
   

  	
   

  
	
  11.1

  	
  Paid Leave of Absence

  	
   

  
	
  11.2

  	
  Unpaid Leave of Absence

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12

  	
  Termination of Plan, Amendment or
  Modification

  	
   

  
	
   

  	
   

  	
   

  
	
  12.1

  	
  Termination of Plan

  	
   

  
	
  12.2

  	
  Amendment

  	
   

  
	
  12.3

  	
  Plan Agreement

  	
   

  
	
  12.4

  	
  Effect of Payment

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13

  	
  Administration

  	
   

  
	
   

  	
   

  	
   

  
	
  13.1

  	
  Committee Duties

  	
   

  
	
  13.2

  	
  Agents

  	
   

  
	
  13.3

  	
  Binding Effect of Decisions

  	
   

  
	
  13.4

  	
  Indemnity of Committee

  	
   

  
	
  13.5

  	
  Employer Information

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 14

  	
  Other Benefits and Agreements

  	
   

  
	
   

  	
   

  	
   

  
	
  14.1

  	
  Coordination with Other Benefits

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 15

  	
  Claims Procedures

  	
   

  
	
   

  	
   

  	
   

  
	
  15.1

  	
  Presentation of Claim

  	
   

  
	
  15.2

  	
  Notification of Decision

  	
   

  
	
  15.3

  	
  Review of a Denied Claim

  	
   

  

 

ii

 

	
  15.4

  	
  Decision on Review

  	
   

  
	
  15.5

  	
  Legal Action

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 16

  	
  Trust

  	
   

  
	
   

  	
   

  	
   

  
	
  16.1

  	
  Establishment of the Trust

  	
   

  
	
  16.2

  	
  Interrelationship of the Plan and the
  Trust

  	
   

  
	
  16.3

  	
  Distributions From the Trust

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 17

  	
  Miscellaneous

  	
   

  
	
   

  	
   

  	
   

  
	
  17.1

  	
  Status of Plan

  	
   

  
	
  17.2

  	
  Unsecured General Creditor

  	
   

  
	
  17.3

  	
  Employer’s Liability

  	
   

  
	
  17.4

  	
  Nonassignability

  	
   

  
	
  17.5

  	
  Not a Contract of Employment

  	
   

  
	
  17.6

  	
  Furnishing Information

  	
   

  
	
  17.7

  	
  Terms

  	
   

  
	
  17.8

  	
  Captions

  	
   

  
	
  17.9

  	
  Governing Law

  	
   

  
	
  17.10

  	
  Notice

  	
   

  
	
  17.11

  	
  Successors

  	
   

  
	
  17.12

  	
  Spouse’s Interest

  	
   

  
	
  17.13

  	
  Validity

  	
   

  
	
  17.14

  	
  Incompetent

  	
   

  
	
  17.15

  	
  Court Order

  	
   

  
	
  17.17

  	
  Insurance

  	
   

  

 

iii

 

LAS VEGAS SANDS, INC.

DEFERRED COMPENSATION PLAN

Effective January
1, 2005

 

Purpose

 

The purpose of this Plan
is to provide specified benefits to Directors and a select group of management
or highly compensated Employees who contribute materially to the continued
growth, development and future business success of Las Vegas Sands, Inc., a
Nevada corporation, and its parent or subsidiaries, if any, that sponsor this
Plan.  This Plan shall be unfunded for
tax purposes and for purposes of Title I of ERISA.

 

ARTICLE 1

Definitions

 

For the purposes of this
Plan, unless otherwise clearly apparent from the context, the following phrases
or terms shall have the following indicated meanings:

 

1.1                                 “Account
Balance” shall mean, with respect to a Participant, an entry on the records
of the Employer equal to the sum of (i) the Deferral Account balance, and
(ii) the Company Contribution Account balance. 
The Account Balance shall be a bookkeeping entry only and shall be
utilized solely as a device for the measurement and determination of the
amounts to be paid to a Participant, or his or her designated Beneficiary,
pursuant to this Plan.

 

1.2                                 “Annual
Deferral Amount” shall mean that portion of a Participant’s Base Salary,
Bonus and Director Fees that a Participant defers in accordance with
Article 3 for any one Plan Year, without regard to whether such amounts
are withheld and credited during such Plan Year.  In the event of a Participant’s Retirement, Disability, death or
Termination of Employment prior to the end of a Plan Year, such year’s Annual
Deferral Amount shall be the actual amount withheld prior to such event.

 

1.3                                 “Annual
Installment Method” shall be an annual installment payment over the number
of years selected by a Participant  in
accordance with this Plan, calculated as follows: (i) for the first annual
installment, a Participant’s vested Account Balance shall be calculated as of
the close of business on or around  the Participant’s Benefit Distribution Date,
as determined by the Committee in its sole discretion,  and (ii) for remaining annual installments,
the Participant’s vested Account Balance shall be calculated on the first
business day of each Plan Year following the Plan Year in which the
Participant’s Benefit Distribution Date occurs.  Each annual installment shall be calculated by multiplying this
balance by a fraction, the numerator of which is one and the denominator of
which is the remaining number of annual payments due the Participant.  By way of example, if a Participant elects a
ten (10) year Annual Installment Method for the Retirement Benefit, the first
payment shall be 1/10 of the vested Account Balance, calculated as described in
this definition.  The following year,
the payment shall be 1/9 of the vested Account Balance, calculated as described
in this definition.

 

1.4                                 “Base
Salary” shall mean the annual cash compensation relating to services
performed during any calendar year, excluding distributions from nonqualified
deferred compensation plans, bonuses, commissions, overtime, fringe benefits,
stock options and other equity based awards,

 

1

 

relocation expenses,
incentive payments, non-monetary awards, Director Fees and other fees, and
automobile and other allowances paid to a Participant for employment services
rendered (whether or not such allowances are included in the Employee’s gross
income).  Base Salary shall be
calculated before reduction for compensation voluntarily deferred or
contributed by the Participant pursuant to all qualified or nonqualified plans
of any Employer and shall be calculated to include amounts not otherwise
included in the Participant’s gross income under Code Sections 125, 402(e)(3),
402(h), or 403(b) pursuant to plans established by any Employer; provided,
however, that all such amounts will be included in compensation only to the
extent that had there been no such plan, the amount would have been payable in
cash to the Employee.

 

1.5                                 “Beneficiary”
shall mean one or more persons, trusts, estates or other entities, designated
in accordance with Article 10, that are entitled to receive benefits under
this Plan upon the death of a Participant.

 

1.6                                 “Beneficiary
Designation Form” shall mean the form established from time to time by the
Committee that a Participant completes, signs and returns to the Committee to
designate one or more Beneficiaries.

 

1.7                                 “Benefit
Distribution Date” shall mean the date that triggers distribution of a
Participant’s vested Account Balance.  A
Participant’s Benefit Distribution Date shall be determined upon the occurrence
of any one of the following:

 

(a)                                  If
the Participant Retires, his or her Benefit Distribution Date shall be the last day of the six-month period
immediately following the date on which the Participant Retires; provided,
however, in the event the Participant changes his or her Retirement
Benefit election in accordance with Section 6.2(a), his or her Benefit
Distribution Date shall be no sooner than the five (5) year anniversary of the
last day of the six-month period immediately following the date on which the Participant
Retires; or

 

(b)                                 If
the Participant experiences a Termination of Employment, his or her Benefit
Distribution Date shall be the last
day of the six-month period immediately following the date on which the
Participant experiences a Termination of Employment; or

 

(c)                                  The
date on which the Committee is provided with proof that is satisfactory to the
Committee of the Participant’s death, if the Participant dies prior to the
complete distribution of his or her vested Account Balance; or

 

(d)                                 The
date on which the Participant becomes Disabled; or

 

(e)                                  The date on which the Company experiences a
Change in Control, as determined by the Committee in its sole discretion, if
(i) the Participant has elected to receive a Change in Control Benefit, as set
forth in Section 5.1 below, and (ii) if a Change in Control occurs prior to the
Participant’s Termination of Employment, Retirement, death or Disability.

 

1.8                                 “Board”
shall mean the board of directors of the Company.

 

1.9                                 “Bonus”
shall mean any compensation, in addition to Base Salary, earned by a
Participant for services rendered during a Plan Year, under any Employer’s
annual bonus, base bonus or cash incentive plans.

 

2

 

1.10                           “Change
in Control” shall be deemed to occur upon:

 

(a)                    the acquisition by any individual, entity or group (within the meaning
of Section 13(d)(3) or 14(d)(2) of the Exchange Act (a “Person”) of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under
the Exchange Act) of 50% or more (on a fully diluted basis) of either
(A) the then outstanding shares of Common Stock of LVSC, taking into
account as outstanding for this purpose such Common Stock issuable upon the
exercise of options or warrants, the conversion of convertible stock or debt,
and the exercise of any similar right to acquire such Common Stock (the “Outstanding
LVSC Common Stock”) or (B) the combined voting power of the then
outstanding voting securities of LVSC entitled to vote generally in the
election of directors (the “Outstanding LVSC Voting Securities”); provided,
however, that for purposes of this Plan, the following acquisitions
shall not constitute a Change in Control: 
(I) any acquisition by LVSC or any Affiliate, (II) any
acquisition by any employee benefit plan sponsored or maintained by LVSC or any
Affiliate, (III) any acquisition by Sheldon G. Adelson (“Adelson”) or
any Related Party or any group of which Adelson or a Related Party is a member
(a “Designated Holder”) or (IV) any acquisition which complies with
clauses (A) and (B) of subsection (e) of this Section 1.10;

 

(b)                   individuals who, on the date hereof,
constitute the board of directors of LVSC (the “Incumbent Directors”)
cease for any reason to constitute at least a majority of the board of directors
of LVSC, provided that any person becoming a director subsequent to the date
hereof, whose election or nomination for election was approved by a vote of at
least two-thirds of the Incumbent Directors then on the board of directors of
LVSC (either by a specific vote or by approval of a registration statement of LVSC describing such person’s
inclusion on the board of directors of LVSC, or a proxy statement of LVSC in which such person is named as
a nominee for director, without written objection to such nomination) shall be
an Incumbent Director; provided, however, that no individual
initially elected or nominated as a director of LVSC as a result of an actual or threatened election contest, as
such terms are used in Rule 14a-11 of Regulation A promulgated under the
Exchange Act, with respect to directors or as a result of any other actual or
threatened solicitation of proxies or consents by or on behalf of any person
other than the board of directors of LVSC shall be deemed to be an Incumbent
Director;

 

(c)                    the dissolution or liquidation of LVSC;

 

(d)                   the sale, transfer or other
disposition of all or substantially all of the business or assets of LVSC, other than any such sale,
transfer or other disposition to one or more Designated Holders; or

 

(e)                    the consummation of a
reorganization, recapitalization, merger, consolidation, statutory share
exchange or similar form of corporate transaction involving LVSC that requires the approval of LVSC’s stockholders, whether for such
transaction or the issuance of securities in the transaction (a “Business
Combination”), unless immediately following such Business Combination:  (A) more than 50% of the total voting power
of (x) the entity resulting from such Business Combination (the “Surviving
Company”), or (y) if applicable, the ultimate parent entity that directly
or indirectly has beneficial ownership of sufficient voting

 

3

 

securities eligible to
elect a majority of the members of the board of directors (or the analogous
governing body) of the Surviving Company (the “Parent Company”), is
represented by the Outstanding LVSC Voting Securities that were outstanding immediately prior
to such Business Combination (or, if applicable, is represented by shares into
which the Outstanding LVSC
Voting Securities were converted pursuant to such Business Combination), and
such voting power among the holders thereof is in substantially the same
proportion as the voting power of the Outstanding LVSC Voting Securities among the holders thereof immediately
prior to the Business Combination, and (B) at least a majority of the members
of the board of directors (or the analogous governing body) of the Parent
Company (or, if there is no Parent Company, the Surviving Company) following
the consummation of the Business Combination were members of the board of
directors of LVSC at the time of such board’s approval of the execution of the
initial agreement providing for such Business Combination.

 

Notwithstanding
the foregoing, the Committee shall interpret all provisions relating to a
Change in Control, including this definition, in a manner that is consistent
with Code Section 409A and
other applicable tax law, including but not limited to Treasury Regulations or
other guidance issued pursuant to such Code Section 409A after the effective
date of this Plan.

 

For
purposes of this Section 1.10:

 

(i)                                     “Affiliate”
shall mean (a) any entity that directly or indirectly is controlled by,
controls or is under common control with LVSC
and (b) to the extent provided by the Committee, any entity in which LVSC has a significant equity
interest.

 

(ii)                                  “Common Stock”
shall mean the common stock, par value $0.001 per share, of LVSC and any stock into which such
common stock may be converted or into which it may be exchanged.

 

(iii)                               “Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended.

 

(iv)                              “LVSC” shall mean
Las Vegas Sands Corp., a Nevada Corporation and the parent of the Company.

 

(v)                                 “Related Party”
shall mean: (A) any spouse, child, stepchild, sibling or descendant of Adelson;
(B) any estate of Adelson or any person described in clause (A); (C) any person
who receives a beneficial interest in the Company or any Subsidiary from any
estate described in clause (B) to the extent of such interest; (D) any
executor, personal administrator or trustee who hold such beneficial interest
in the Company or any Subsidiary for the benefit of, or as fiduciary for, any
person under clauses (A), (B) or (C) to the extent of such interest; (E) any
corporation, trust or similar entity owned or controlled by Adelson or any
person referred to in clause (A), (B), (C) or (D) or for the benefit of any
person referred to in clause (A); or (F) the spouse or issue of one or more of
the persons described in clause (A).

 

4

 

(vi)                              “Subsidiary” shall
mean any subsidiary of the Company as defined in Section 424(f) of the Code.

 

1.11                            “Change in Control Benefit” shall
have the meaning set forth in Article 5.

 

1.12                           “Claimant”
shall have the meaning set forth in Section 15.1.

 

1.13                           “Code”
shall mean the Internal Revenue Code of 1986, as it may be amended from time to
time.

 

1.14                            “Committee”
shall mean the committee described in Article 13.

 

1.15                            “Company”
shall mean Las Vegas Sands, Inc., a Nevada corporation, and any successor to
all or substantially all of the Company’s assets or business.

 

1.16                           “Company
Contribution Account” shall mean (i) the sum of the Participant’s Company
Contribution Amounts, plus (ii) amounts credited or debited to the
Participant’s Company Contribution Account in accordance with this Plan, less
(iii) all distributions made to the Participant or his or her Beneficiary
pursuant to this Plan that relate to the Participant’s Company Contribution
Account.

 

1.17                           “Company
Contribution Amount” shall mean, for any one Plan Year, the amount
determined in accordance with Section 3.5.

 

1.18                           “Death
Benefit” shall mean the benefit set forth in Article 9.

 

1.19                           “Deferral
Account” shall mean (i) the sum of all of a Participant’s Annual Deferral
Amounts, plus (ii) amounts credited or debited to the Participant’s Deferral
Account in accordance with this Plan, less (iii) all distributions made to the
Participant or his or her Beneficiary pursuant to this Plan that relate to his or
her Deferral Account.

 

1.20                           “Director”
shall mean any non-employee member of the board of directors of any Employer.

 

1.21                           “Director
Fees” shall mean the annual fees earned by a Director from any Employer,
including retainer fees and meetings fees, as compensation for serving on the
board of directors.

 

1.22                           “Disability”
or “Disabled” shall mean that a Participant is (i) unable to engage in
any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can
be expected to last for a continuous period of not less than twelve (12)
months, or (ii) by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last
for a continuous period of not less than twelve (12) months, receiving income
replacement benefits for a period of not less than three (3) months under an
accident or health plan covering employees of the Participant’s Employer.

 

1.23                           “Disability
Benefit” shall mean the benefit set forth in Article 8.

 

1.24                           “Election
Form” shall mean the form established from time to time by the Committee
that a Participant completes, signs and returns to the Committee to make an
election under the Plan.

 

1.25                           “Employee”
shall mean a person who is an employee of any Employer.

 

1.26                           “Employer(s)”
shall mean the Company, its parent and/or any of its subsidiaries (now in
existence or hereafter formed or acquired) that have been selected by the Board
to participate in the Plan and have adopted the Plan as a sponsor.

 

5

 

1.27                           “ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as it may be
amended from time to time.

 

1.28                           “Participant”
shall mean any Employee or Director (i) who is selected to participate in
the Plan, (ii) who submits an executed Plan Agreement, Election Form and
Beneficiary Designation Form, which are accepted by the Committee, and (iii)
whose Plan Agreement has not terminated.

 

1.29                           “Plan”
shall mean the Las Vegas Sands, Inc. Deferred Compensation Plan, which shall be
evidenced by this instrument and by each Plan Agreement, as they may be amended
from time to time.

 

1.30                           “Plan
Agreement” shall mean a written agreement, as may be amended from time to
time, which is entered into by and between an Employer and a Participant.  Each Plan Agreement executed by a
Participant and the Participant’s Employer shall provide for the entire benefit
to which such Participant is entitled under the Plan; should there be more than
one Plan Agreement, the Plan Agreement bearing the latest date of acceptance by
the Employer shall supersede all previous Plan Agreements in their entirety and
shall govern such entitlement.  The
terms of any Plan Agreement may be different for any Participant, and any Plan
Agreement may provide additional benefits not set forth in the Plan or limit
the benefits otherwise provided under the Plan; provided, however, that any
such additional benefits or benefit limitations must be agreed to by both the
Employer and the Participant.

 

1.31                           “Plan
Year” shall  mean a period
beginning on January 1 of each calendar year and continuing through December 31
of such calendar year.

 

1.32                           “Retirement”,
“Retire(s)” or “Retired” shall mean, with respect to an Employee,
separation from service with all Employers for any reason other than a leave of
absence, death or Disability on or after the earlier of the attainment of (a)
age sixty-two (62) or (b) age fifty-five (55) with ten (10) Years of Service;
and shall mean with respect to a Director, severance of his or her
directorships with all Employers.

 

Notwithstanding the
foregoing, a Participant who would otherwise qualify for Retirement, shall not
be deemed to be Retired for purposes of vesting under Section 3.7(c) if the
Participant’s employment is terminated for Cause.  For purposes of this Section, “Cause” shall be defined in accordance
with any applicable employment agreement between the Participant and an
Employer.  In the absence of such an
agreement, “Cause” shall mean a Participant’s termination of employment due to:

 

(a)                                  His conviction or plea of guilty or no
contest to a felony involving fraud or embezzlement with respect to his
employment with the Employer; or

 

(b)                                 His conviction or plea of guilty or no
contest to an intentional and willful violation of federal securities laws
involving his duties at the Employer or Company securities.

 

Notwithstanding
the preceding sentence, the Committee may, in its discretion, determine that a
termination of employment following an event described in (a) or (b) above
shall not be deemed for “Cause.”

 

1.33                           “Retirement
Benefit” shall mean the benefit set forth in Article 6.

 

1.34                           “Scheduled
Distribution” shall mean the distribution set forth in Section 4.1.

 

6

 

1.35                           “Short-Term
Disability” shall mean a determination that a Participant is disabled made
by the carrier of any individual or group short-term disability insurance
policy, sponsored by the Participant’s Employer or, if there is no such policy
by the Committee in its sole discretion. 
Upon request by the Employer, the Participant must submit proof of the
carrier’s determination.

 

1.36                             “Terminate the Plan”, “Termination
of the Plan” shall mean a determination by an Employer’s board of directors
that (i) all of its Participants shall no longer be eligible to
participate in the Plan, (ii) all deferral elections for such Participants
shall terminate, and (iii) such Participants shall no longer be eligible to
receive Company contributions to their Company Contribution Account under this
Plan.

 

1.37                           “Termination
Benefit” shall mean the benefit set forth in Article 7.

 

1.38                           “Termination
of Employment” shall mean the separation from service with all Employers,
voluntarily or involuntarily, for any reason other than Retirement, Disability,
death or an authorized leave of absence.

 

1.39                           “Trust”
shall mean one or more trusts established by the Company in accordance with
Article 16.

 

1.40                           “Unforeseeable
Financial Emergency” shall mean an unanticipated emergency that is caused
by an event beyond the control of a Participant that would result in severe
financial hardship to the Participant resulting from (i) a sudden and
unexpected illness or accident of the Participant, the Participant’s spouse, or
a dependent of the Participant, (ii) a loss of the Participant’s property
due to casualty, or (iii) such other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of
the Participant, all as determined in the sole discretion of the Committee.

 

1.41                           “Years
of Service” shall mean the total number of full years in which a
Participant has been employed by one or more Employers.  For purposes of this definition, a year of
employment shall be a 365 day period (or 366 day period in the case of a leap
year) that, for the first year of employment, commences on the Employee’s date
of hiring and that, for any subsequent year, commences on an anniversary of
that hiring date.  The Committee shall
make a determination as to whether any partial year of employment shall be
counted as a Year of Service.

 

ARTICLE
2

Selection, Enrollment, Eligibility

 

2.1                                 Selection by Committee.  Participation in the Plan shall be limited
to Directors and, as determined by the Committee in its sole discretion, a
select group of management or highly compensated Employees.  From that group, the Committee shall select,
in its sole discretion, those Employees who may actually participate in this
Plan.

 

2.2                                 Enrollment and Eligibility
Requirements; Commencement of Participation.

 

(a)                                  As
a condition to participation, each Director or selected Employee who is
eligible to participate in the Plan effective as of the first day of a Plan
Year shall complete, execute and return to the Committee a Plan Agreement, an
Election Form and a Beneficiary Designation Form, prior to the first day of
such Plan Year, or such other earlier deadline as may be established by the
Committee in its sole discretion.  In
addition, the Committee

 

7

 

shall establish from time
to time such other enrollment requirements as it determines, in its sole
discretion, are necessary.

 

(b)                                 A
Director or selected Employee who first becomes eligible to participate in this
Plan after the first day of a Plan Year must complete these requirements within
thirty (30) days after he or she first becomes eligible to participate in the
Plan, or within such other earlier deadline as may be established by the
Committee, in its sole discretion, in order to participate for that Plan
Year.  In such event, such person’s
participation in this Plan shall not commence earlier than the date determined
by the Committee pursuant to Section 2.2(c) and such person shall not be
permitted to defer under this Plan any portion of his or her Base Salary, Bonus
and/or Director Fees that are paid with respect to services performed prior to
his or her participation commencement date.

 

(c)                                  Each
Director or selected Employee who is eligible to participate in the Plan shall
commence participation in the Plan on the date that the Committee determines,
in its sole discretion, that the Director or Employee has met all enrollment
requirements set forth in this Plan and required by the Committee, including
returning all required documents to the Committee within the specified time
period.  Notwithstanding the foregoing,
the Committee shall process such Participant’s deferral election as soon as
administratively practicable after such deferral election is submitted to and
accepted by the Committee.

 

(d)                                 If
a Director or an Employee fails to meet all requirements contained in this
Section 2.2 within the period required, that Director or Employee shall not be
eligible to participate in the Plan during such Plan Year.

 

2.3                                 Termination of a Participant’s Eligibility.  If the Committee determines that an Employee
Participant no longer qualifies as a member of a select group of management or
highly compensated employees, as membership in such group is determined in
accordance with Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA, or that the inclusion of Directors in this
Plan could jeopardize the status of this Plan as a plan intended to be
“unfunded” and “maintained by an employer primarily for the purpose of
providing deferred compensation for a select group of management or highly
compensated employees” within the meaning of ERISA Sections 201(2), 301(a)(3)
and 401(a)(1), the Committee shall have the right, in its sole
discretion, to (i) terminate any deferral election the Participant has
made for the remainder of the Plan Year in which the Committee makes such
determination, (ii) prevent the Participant from making future deferral
elections, and/or (iii) take further action that the Committee deems
appropriate.  Notwithstanding the
foregoing, in the event of a Termination of the Plan in accordance with Section
1.36, the termination of the affected Participants’ eligibility for
participation in the Plan shall not be governed by this Section 2.3, but rather
shall be governed by Section 1.36 and Section 12.1.  In the event that a Participant is no longer eligible to defer
compensation under this Plan, the Participant’s Account Balance shall continue
to be governed by the terms of this Plan until such time as the Participant’s
Account Balance is paid in accordance with the terms of this Plan.

 

8

 

ARTICLE
3

Deferral Commitments/Company Contribution Amounts/

 

Vesting/Crediting/Taxes

 

3.1                                 Minimum Deferrals.

 

(a)                                  Annual
Deferral Amount.  For
each Plan Year, a Participant may elect to defer, as his or her Annual Deferral
Amount, Base Salary, Bonus and/or Director Fees in the following minimum
amounts for each deferral elected: 

 

	
  Deferral

  	
   

  	
  Minimum
  Amount

  	
   

  
	
  Base Salary
  and/or Bonus

  	
   

  	
  $5,000 aggregate

  	
   

  
	
  Director Fees

  	
   

  	
  $0

  	
   

  

 

If the Committee
determines, in its sole discretion, prior to the beginning of a Plan Year that
a Participant has made an election for less than the stated minimum amounts, or
if no election is made, the amount deferred shall be zero.  If the Committee determines, in its sole
discretion, at any time after the beginning of a Plan Year that a Participant
has deferred less than the stated minimum amounts for that Plan Year, any
amount credited to the Participant’s Account Balance as the Annual Deferral
Amount for that Plan Year shall be distributed to the Participant within 60
days after the last day of the Plan Year in which the Committee determination
was made.

 

(b)                                 Short
Plan Year. 
Notwithstanding the foregoing, if a Participant first becomes a
Participant after the first day of a Plan Year,the minimum Annual Deferral Amount shall be an amount equal to the
minimum set forth above, multiplied by a fraction, the numerator of which is
the number of complete months remaining in the Plan Year and the denominator of
which is 12.

 

3.2                                 Maximum Deferral.

 

(a)                                  Annual
Deferral Amount.  For
each Plan Year, a Participant may elect to defer, as his or her Annual Deferral
Amount, Base Salary, Bonus and/or Director Fees up to the following maximum
percentages for each deferral elected: 

 

	
  Deferral

  	
   

  	
  Maximum
  Percentage

  	
   

  
	
  Base Salary

  	
   

  	
  75

  	
  %

  
	
  Bonus

  	
   

  	
  100

  	
  %

  
	
  Director Fees

  	
   

  	
  100

  	
  %

  

 

(b)                                 Short Plan Year.  Notwithstanding the foregoing, if a
Participant first becomes a Participant after the first day of a Plan Year  the maximum Annual Deferral Amount shall
be limited to the amount of compensation not yet earned by the Participant as
of the date the Participant submits a Plan Agreement and Election Form to the
Committee for acceptance.

 

9

 

3.3                                 Election to Defer; Effect
of Election Form.

 

(a)                                  First
Plan Year.  In connection
with a Participant’s commencement of participation in the Plan, the Participant
shall make an irrevocable deferral election for the Plan Year in which the
Participant commences participation in the Plan, along with such other
elections as the Committee deems necessary or desirable under the Plan.  For these elections to be valid, the
Election Form must be completed and signed by the Participant, timely delivered
to the Committee (in accordance with Section 2.2 above) and accepted by the
Committee.

 

(b)                                 Subsequent
Plan Years.  For each
succeeding Plan Year, an irrevocable deferral election for that Plan Year, and
such other elections as the Committee deems necessary or desirable under the
Plan, shall be made by timely delivering a new Election Form to the Committee,
in accordance with its rules and procedures, before the end of the Plan Year
preceding the Plan Year for which the election is made.  If no such Election Form is timely delivered
for a Plan Year, the Annual Deferral Amount shall be zero for that Plan Year.

 

(c)                                  Performance-Based Compensation. Notwithstanding
the foregoing, the Committee may, in its sole discretion, determine that an
irrevocable deferral election pertaining to performance-based compensation may
be made by timely delivering a new Election Form to the Committee, in
accordance with its rules and procedures, no later than six (6) months before
the end of the performance service period. 
“Performance-based compensation” shall be compensation based on
services performed over a period of at least twelve (12) months, in accordance
with Code Section 409A and related guidance.

 

3.4                                 Withholding and Crediting of
Annual Deferral Amounts. 
For each Plan Year, the Base Salary portion of the Annual Deferral
Amount shall be withheld in equal amounts through payroll deductions from each
regularly scheduled Base Salary installment, as adjusted from time to time for
increases and decreases in Base Salary. 
The Bonus and/or Director Fees portion of the Annual Deferral Amount
shall be withheld at the time the Bonus or Director Fees are or otherwise would
be paid to the Participant, whether or not this occurs during the Plan Year
itself.  Annual Deferral Amounts shall
be credited to a Participant’s Deferral Account at the time such amounts would
otherwise have been paid to the Participant.

 

3.5                                 Company Contribution Amount.

 

(a)                                  For
each Plan Year, an Employer may be required to credit amounts to a Participant’s
Company Contribution Account in accordance with employment or other agreements
entered into between the Participant and the Employer.  Such amounts shall be credited on the date
or dates prescribed by such agreements.

 

(b)                                 For
each Plan Year, an Employer, in its sole discretion, may, but is not required
to, credit any amount it desires to any Participant’s Company Contribution
Account under this Plan, which amount shall be for that Participant the Company
Contribution Amount for that Plan Year. 
The amount so credited to a Participant may be smaller or larger than
the amount credited to any other Participant, and the amount credited to any
Participant for a Plan Year may be zero, even though one or more other
Participants receive a Company Contribution Amount for that Plan Year.  The Company Contribution Amount described

 

10

 

in this Section 3.5(b),
if any, shall be credited on a date or dates to be determined by the Committee,
in its sole discretion.

 

3.6                                 Crediting of Amounts after Benefit Distribution.  Notwithstanding any provision in this Plan
to the contrary, should the complete distribution of a Participant’s vested
Account Balance occur prior to the date on which any portion of (i) the Annual Deferral
Amount that a Participant has elected to defer in accordance with Section 3.3,
or (ii) the Company Contribution Amount, would otherwise be credited to the
Participant’s Account Balance, such amounts shall not be credited to the
Participant’s Account Balance, but shall be paid to the Participant in a manner
determined by the Committee, in its sole discretion.

 

3.7                                 Vesting.

 

(a)                                  A
Participant shall at all times be 100% vested in his or her Deferral Account.

 

(b)                                 A
Participant shall be vested in his or her Company Contribution Account in
accordance with the vesting schedule(s) set forth in his or her Plan Agreement,
employment agreement or any other agreement entered into between the
Participant and his or her Employer.  If
not addressed in such agreements, a Participant shall vest in his or her
Company Contribution Account in accordance with the schedule declared by the
Committee in its sole discretion.

 

(c)                                  Notwithstanding
anything to the contrary contained in this Section 3.7, in the event of a Change in Control, or upon a Participant’s Retirement
(excluding a Participant whose employment is terminated for “Cause” as provided
in Section 1.32), death while employed by an Employer, or Disability, a
Participant’s Company Contribution Account shall immediately become 100% vested
(if it is not already vested in accordance with the above vesting schedules).

 

(d)                                 Notwithstanding subsection 3.7(c) above, the
vesting schedule for a Participant’s Company Contribution Account shall not be
accelerated upon a Change in Control to the extent that the Committee
determines that such acceleration would cause the deduction limitations of
Section 280G of the Code to become effective. 
In the event that all of a Participant’s Company Contribution Account is
not vested pursuant to such a determination, the Participant may request
independent verification of the Committee’s calculations with respect to the
application of Section 280G.  In such
case, the Committee must provide to the Participant within ninety (90) days of
such a request an opinion from the accounting firm regularly used by the
Company for preparation of tax returns (the “Accounting Firm”).  The opinion shall state the Accounting
Firm’s opinion that any limitation in the vested percentage hereunder is
necessary to avoid the limits of Section 280G and contain supporting
calculations.  The cost of such opinion
shall be paid for by the Company.

 

(e)                                  Section 3.7(d) shall not prevent the
acceleration of the vesting schedule applicable to a Participant’s Company
Contribution Account if such Participant is entitled to a “gross-up” payment,
to eliminate the effect of the Code section 4999 excise tax, pursuant to his or
her employment agreement or other agreement entered into between such
Participant and the Employer.

 

11

 

3.8                                 Crediting/Debiting of Account Balances.  In accordance with, and subject to, the
rules and procedures that are established from time to time by the Committee,
in its sole discretion, amounts shall be credited or debited to a Participant’s
Account Balance in accordance with the following rules:

 

(a)                                  Measurement
Funds.  The Participant
may elect one or more of the measurement funds selected by the Committee, in
its sole discretion, which are based on certain mutual funds (the “Measurement
Funds”), for the purpose of crediting or debiting additional amounts to his
or her Account Balance.  As necessary,
the Committee may, in its sole discretion, discontinue, substitute or add a
Measurement Fund.  Each such action will
take effect as of the first day of the first calendar quarter that begins at
least thirty (30) days after the day on which the Committee gives Participants
advance written notice of such change.

 

(b)                                 Election
of Measurement Funds.  A
Participant, in connection with his or her initial deferral election in
accordance with Section 3.3(a) above, shall elect, on the Election Form, one or
more Measurement Fund(s) (as described in Section 3.8(a) above) to be used to
determine the amounts to be credited or debited to his or her Account
Balance.  If a Participant does not
elect any of the Measurement Funds as described in the previous sentence, the
Participant’s Account Balance shall automatically be allocated into the
lowest-risk Measurement Fund, as determined by the Committee, in its sole
discretion.  The Participant may (but is
not required to) elect, by submitting an Election Form to the Committee that is
accepted by the Committee, to add or delete one or more Measurement Fund(s) to
be used to determine the amounts to be credited or debited to his or her
Account Balance, or to change the portion of his or her Account Balance
allocated to each previously or newly elected Measurement Fund.  If an election is made in accordance with
the previous sentence, it shall apply as of the first business day deemed
reasonably practicable by the Committee, in its sole discretion, and shall
continue thereafter for each subsequent day in which the Participant
participates in the Plan, unless changed in accordance with the previous
sentence.

 

(c)                                  Proportionate
Allocation.  In making
any election described in Section 3.8(b) above, the Participant shall specify
on the Election Form, in increments of one percent (1%), the percentage of his
or her Account Balance or Measurement Fund, as applicable, to be
allocated/reallocated.

 

(d)                                 Crediting
or Debiting Method.  The
performance of each Measurement Fund (either positive or negative) will be
determined on a daily basis based on the manner in which such Participant’s
Account Balance has been hypothetically allocated among the Measurement Funds
by the Participant.

 

(e)                                  No Actual
Investment. 
Notwithstanding any other provision of this Plan that may be interpreted
to the contrary, the Measurement Funds are to be used for measurement purposes
only, and a Participant’s election of any such Measurement Fund, the allocation
of his or her Account Balance thereto, the calculation of additional amounts
and the crediting or debiting of such amounts to a Participant’s Account
Balance shall  not be considered or construed in any manner as an
actual investment of his or her Account Balance in any such Measurement
Fund.  In the event that the Company or
the Trustee (as that term is defined in the Trust), in its own discretion,
decides to invest funds in any or

 

12

 

all of the investments on
which the Measurement Funds are based, no Participant shall have any rights in
or to such investments themselves. 
Without limiting the foregoing, a Participant’s Account Balance shall at
all times be a bookkeeping entry only and shall not represent any investment
made on his or her behalf by the Company or the Trust; the Participant shall at
all times remain an unsecured creditor of the Company, if applicable.

 

3.9                                 FICA and Other Taxes.

 

(a)                                  Annual
Deferral Amounts.  For
each Plan Year in which an Annual Deferral Amount is being withheld from a
Participant, the Participant’s Employer(s) shall withhold from that portion of
the Participant’s Base Salary and/or Bonus that is not being deferred, in a
manner determined by the Employer(s), the Participant’s share of FICA and other
employment taxes on such Annual Deferral Amount.  If necessary, the Committee may reduce the Annual Deferral Amount
in order to comply with this Section 3.9.

 

(b)                                 Company
Contribution Account. 
When a Participant becomes vested in a portion of his or her Company
Contribution Account, the Participant’s Employer(s) shall withhold from that
portion of the Participant’s Base Salary and/or Bonus that is not deferred, in
a manner determined by the Employer(s), the Participant’s share of FICA and
other employment taxes on such Company Contribution Amount.  If necessary, the Committee may reduce the
vested portion of the Participant’s Company Contribution Account, as
applicable, in order to comply with this Section 3.9, if applicable.

 

(c)                                  Distributions.  The Participant’s Employer(s), or the
trustee of the Trust, shall withhold from any payments made to a Participant
under this Plan all federal, state, local or foreign income, employment and
other taxes required to be withheld by the Employer(s), or the trustee of the
Trust, in connection with such payments, in amounts and in a manner to be
determined in the sole discretion of the Employer(s).

 

ARTICLE
4

 Scheduled
Distribution; Unforeseeable Financial Emergencies 

 

4.1                                 Scheduled Distribution.  In connection with each election to defer an Annual Deferral
Amount, a Participant may irrevocably elect to receive a Scheduled
Distribution, in the form of a lump sum payment, from the Plan with respect to
all or a portion of the Annual Deferral Amount.  The Scheduled Distribution shall be a lump sum payment in an
amount that is equal to the portion of the Annual Deferral Amount the
Participant elected to have distributed as a Scheduled Distribution, plus
amounts credited or debited in the manner provided in Section 3.8 above on
that amount, calculated as of the close of business on or around the date on
which the Scheduled Distribution becomes payable, as determined by the
Committee in its sole discretion. 
Subject to the other terms and conditions of this Plan, each Scheduled
Distribution elected shall be paid out during a sixty (60) day period
commencing immediately after the first day of any Plan Year designated by the
Participant.  The Plan Year designated
by the Participant must be at least three (3) Plan Years after the end of the
Plan Year to which the Participant’s deferral election described in Section 3.3
relates.  By way of example, if a
Scheduled Distribution is elected for Annual Deferral Amounts that are earned
in the Plan Year commencing January 1, 2005, the

 

13

 

Scheduled Distribution
would become payable during a sixty (60) day period commencing January 1,
2009.

 

4.2                                 Other Benefits Take Precedence
Over Scheduled Distributions. 
Should a Benefit Distribution Date occur that triggers a benefit under
Articles 5, 6, 7, 8, or 9, any Annual Deferral Amount, that is subject to a
Scheduled Distribution election under Section 4.1 shall not be paid in
accordance with Section 4.1, but shall be paid in accordance with the other
applicable Article.  Notwithstanding the
foregoing, the Committee shall interpret this Section 4.2 in a manner that is
consistent with applicable tax law, including but not limited to guidance
issued after the effective date of this Plan.

 

4.3                                 Withdrawal Payout/Suspensions
for Unforeseeable Financial Emergencies.

 

(a)                                  If a Participant experiences an Unforeseeable
Financial Emergency, the Participant may petition the Committee to suspend
deferrals of Base Salary, Bonus, and Director Fees to the extent deemed
necessary by the Committee to satisfy the Unforeseeable Financial
Emergency.  If suspension of deferrals is
not sufficient to satisfy the Participant’s Unforeseeable Financial Emergency,
or if suspension of deferrals is not required under applicable tax law, the
Participant may further petition the Committee to receive a partial or full
payout from the Plan.  The Participant
shall only receive a payout from the Plan to the extent such payout is deemed
necessary by the Committee to satisfy the Participant’s Unforeseeable Financial
Emergency, plus amounts reasonably necessary to pay
taxes reasonably anticipated as a result of the distribution.

 

(b)                                 The
payout shall not exceed the lesser of (i) the Participant’s vested Account
Balance, calculated as of the close of business on or around the date on which
the amount becomes payable, as determined by the Committee in its sole
discretion, or (ii) the amount necessary to satisfy the Unforeseeable Financial
Emergency, plus amounts reasonably
necessary to pay taxes reasonably anticipated as a result of the distribution.  Notwithstanding the foregoing, a Participant
may not receive a payout from the Plan to the extent that the Unforeseeable
Financial Emergency is or may be relieved (A) through reimbursement or
compensation by insurance or otherwise, (B) by liquidation of the Participant’s
assets, to the extent the liquidation of such assets would not itself cause
severe financial hardship or (C) by suspension of deferrals under this Plan, if
the Committee, in its sole discretion, determines that suspension is required
by applicable tax law.

 

(c)                                  If
the Committee, in its sole discretion, approves a Participant’s petition for
suspension, the Participant’s deferrals under this Plan shall be suspended as
of the date of such approval.  If the
Committee, in its sole discretion, approves a Participant’s petition for
suspension and payout, the Participant’s deferrals under this Plan shall be
suspended as of the date of such approval and the Participant shall receive a
payout from the Plan within sixty (60) days of the date of such approval.

 

(d)                                 Notwithstanding
the foregoing, the Committee shall interpret all provisions relating to
suspension and/or payout under this Section 4.3 in a manner that is consistent
with applicable tax law, including but not limited to guidance issued after the
effective date of this Plan.

 

14

 

ARTICLE 5

Change in
Control Benefit 

 

5.1                                 Change in Control Benefit.  A Participant, in
connection with his or her commencement of participation in the Plan, shall
irrevocably elect on an Election Form whether to (i) receive a Change in
Control Benefit, which shall be equal to the Participant’s vested Account
Balance, calculated as of the close of business on or around the Participant’s
Benefit Distribution Date, as determined by the Committee in its sole
discretion, or (ii) to have his or her Account Balance remain in the Plan upon
the occurrence of a Change in Control and to have his or her Account Balance
remain subject to the terms and conditions of the Plan.  If a Participant does not make any election
with respect to the payment of the Change in Control Benefit, then such
Participant’s Account Balance shall remain in the Plan upon a Change in Control
and shall be subject to the terms and conditions of the Plan.

 

5.2                                 Payment of Change in Control Benefit. 
The Change in Control Benefit, if any, shall be paid to the Participant
in a lump sum no later than sixty (60) days after the Participant’s
Benefit Distribution Date. Notwithstanding the foregoing, the Committee shall
interpret all provisions in this Plan relating to a Change in Control Benefit
in a manner that is consistent with applicable tax law, including but not
limited to guidance issued after the effective date of this Plan.

 

ARTICLE
6

Retirement Benefit

 

6.1                                 Retirement Benefit.  A Participant who Retires shall receive, as
a Retirement Benefit, his or her vested Account Balance, calculated as of the
close of business on or around the Participant’s Benefit Distribution Date, as
determined by the Committee in its sole discretion.

 

6.2                                 Payment of Retirement
Benefit.

 

(a)                                  A
Participant, in connection with his or her commencement of participation in the
Plan, shall elect on an Election Form to receive the Retirement Benefit in a
lump sum or pursuant to an Annual Installment Method of up to 20 years.  The
Participant may change this election one time by submitting an Election Form to
the Committee in accordance with the following criteria:

 

(i)                                     Such Election Form must be submitted to and
accepted by the Committee in its sole discretion at least twelve (12) months
prior to the Participant’s originally scheduled Benefit Distribution Date
described in Section 1.7(a); and

 

(ii)                                  The first
Retirement Benefit payment is delayed
at least five (5) years from the Participant’s originally scheduled Benefit Distribution
Date described
in Section 1.7(a); and

 

(iii)                               The election to
modify the Retirement Benefit shall have no effect until at least twelve (12)
months after the date on which the election is made; and

 

15

 

(iv)                              Notwithstanding the foregoing, the Committee
shall interpret all provisions relating to changing the Retirement Benefit
election under this Section 6.2 in a manner that is consistent with applicable
tax law, including but not limited to guidance issued after the effective date
of this Plan.  Accordingly, if a Participant’s
subsequent Retirement Benefit distribution election would result in the
shortening of the length of the Retirement Benefit payment period (e.g., a
Participant changes an existing distribution election from annual installments
to a lump sum payment; from 15 annual installments to 5 annual installments,
etc.), and the Committee determines such election to be inconsistent with
applicable tax law, the election shall not be effective.

 

The
Election Form most recently accepted by the Committee shall govern the payout
of the Retirement Benefit.  If a Participant does not make any election
with respect to the payment of the Retirement Benefit in connection with his or
her commencement of participation in the Plan, then such Participant shall be
deemed to have elected to receive the Retirement Benefit in a lump sum.

 

(b)                                 The
lump sum payment shall be made, or installment payments shall commence, no
later than sixty (60) days after the Participant’s Benefit Distribution
Date.  Remaining installments, if any,
shall be paid no later than sixty (60) days after the first day of each Plan
Year following the Plan Year in which the Participant’s Benefit Distribution
Date occurs.

 

ARTICLE
7

Termination Benefit

 

7.1                                 Termination Benefit.  A Participant who experiences a Termination
of Employment shall receive, as a Termination Benefit, his or her vested
Account Balance, calculated as of the close of business on or around the
Participant’s Benefit Distribution Date, as determined by the Committee in its
sole discretion.

 

7.2                                 Payment of Termination Benefit.  The Termination Benefit shall be paid to the
Participant in a lump sum payment no later than sixty (60) days after the
Participant’s Benefit Distribution Date.

 

ARTICLE
8

Short-Term Disability Waiver;  Disability Benefit

 

8.1                                 Short-Term Disability Waiver.

 

(a)                                  Waiver of
Deferral.  If a Participant is both (i) suffering from
a Short-Term Disability, and (ii) receiving less than 100 percent of his or her
Base Salary or Director Fees during the period of such Short-Term Disability,
then such Participant shall be excused from fulfilling his or her Annual
Deferral Amount commitment that would otherwise have been withheld during the
remainder of the Plan Year in which the Participant first suffered a Short-Term
Disability.  During the period of
Short-Term Disability, the Participant shall not be allowed to make any
additional deferral elections, but will

 

16

 

continue
to be eligible for the benefits provided in Articles 4, 5, 6, 7, 8, or 9
in accordance with the provision of
those Articles.

 

(b)                           Deferral
Following Short-Term Disability.  If a Participant (i) returns to
employment, or service as a Director, with an Employer after a Short-Term
Disability ceases, and (ii) payment of 100 percent of his or her Base Salary or
Director Fees recommences, the Participant may elect to defer an Annual
Deferral Amount for the Plan Year following his or her return to employment or
service and for every Plan Year thereafter while a Participant in the Plan;
provided such deferral elections are otherwise allowed and an Election Form is
delivered to and accepted by the Committee for each such election in accordance
with Section 3.3 above.

 

(c)                            Notwithstanding
the foregoing, the Committee shall interpret all provisions relating to waiver
of a Participant’s deferral commitment under this Section 8.1 in a manner that
is consistent with applicable tax law, including, but not limited to, guidance
issued after the effective date of this Plan.

 

8.2                                 Disability Benefit.

 

(a)                                  Disability Benefit. 
Upon a Participant’s Disability, the Participant shall receive a
Disability Benefit, which shall be equal to the Participant’s vested Account
Balance, calculated as of the close of business on or around the Participant’s
Benefit Distribution Date, as selected by the Committee in its sole discretion.

 

(b)                                 Payment
of Disability Benefit.  The Disability Benefit shall be paid
to the Participant in a lump sum payment no later than sixty (60) days after
the Participant’s Benefit Distribution Date.

 

ARTICLE
9

Death Benefit

 

9.1                                 Death Benefit. 
A Participant’s Beneficiary(ies) shall receive a Death Benefit upon the
Participant’s death which will be equal to the Participant’s vested Account
Balance, calculated as of the close of business on or around the Participant’s
Benefit Distribution Date, as selected by the Committee in its sole discretion.

 

9.2                                 Payment of Death Benefit.  The Death Benefit shall be paid to the
Participant’s Beneficiary(ies) in a lump sum payment no later than sixty (60)
days after the Participant’s Benefit Distribution Date.

 

ARTICLE
10

Beneficiary Designation

 

10.1                           Beneficiary. 
Each Participant shall have the right, at any time, to designate his or
her Beneficiary(ies) (both primary as well as contingent) to receive any
benefits payable under the Plan upon the death of a Participant.  The Beneficiary(ies) designated under this
Plan may be the

 

17

 

same as or different from
the Beneficiary(ies) designated under any other plan of an Employer in which
the Participant participates.

 

10.2                           Beneficiary Designation;
Change; Spousal Consent. 
A Participant shall designate his or her Beneficiary(ies) by completing
and signing the Beneficiary Designation Form, and returning it to the Committee
or its designated agent.  A Participant
shall have the right to change a Beneficiary by completing, signing and
otherwise complying with the terms of the Beneficiary Designation Form and the
Committee’s rules and procedures, as in effect from time to time.  If the Participant names someone other than
his or her spouse as a Beneficiary, the Committee may, in its sole discretion,
determine that spousal consent is required to be provided in a form designated
by the Committee, executed by such Participant’s spouse and returned to the
Committee.  Upon the acceptance by the
Committee of a new Beneficiary Designation Form, all Beneficiary designations
previously filed shall be canceled.  The
Committee shall be entitled to rely on the last Beneficiary Designation Form
filed by the Participant and accepted by the Committee prior to his or her
death.

 

10.3                           Acknowledgment.  No designation or change in designation of a
Beneficiary shall be effective until received and acknowledged in writing by
the Committee or its designated agent.

 

10.4                           No Beneficiary Designation.  If a Participant fails to designate a
Beneficiary as provided in Sections 10.1, 10.2 and 10.3 above or, if all
designated Beneficiaries predecease the Participant or die prior to complete distribution
of the Participant’s benefits, then the Participant’s designated Beneficiary
shall be deemed to be his or her surviving spouse.  If the Participant has no surviving spouse, the benefits
remaining under the Plan to be paid to a Beneficiary shall be payable to the
executor or personal representative of the Participant’s estate.

 

10.5                           Doubt as to Beneficiary.  If the Committee has any doubt as to the
proper Beneficiary(ies) to receive payments pursuant to this Plan, the
Committee shall have the right, exercisable in its discretion, to cause the
Participant’s Employer to withhold such payments until this matter is resolved
to the Committee’s satisfaction.

 

10.6                           Discharge of Obligations.  The payment of benefits under the Plan to a
Participant’s Beneficiary(ies) shall fully and completely discharge all
Employers and the Committee from all further obligations under this Plan with
respect to the Participant, and that Participant’s Plan Agreement shall
terminate upon such full payment of benefits.

 

ARTICLE
11

Leave of Absence

 

11.1                           Paid Leave of Absence.  If a Participant is authorized by the
Participant’s Employer to take a paid leave of absence from the employment of
the Employer, (i) the Participant shall continue to be considered eligible for
the benefits provided in Articles 4, 5, 6, 7, 8, or 9 in accordance with the
provisions of those Articles, and (ii) the Annual Deferral Amount  shall continue to be withheld during such
paid leave of absence in accordance with Section 3.3.

 

11.2                           Unpaid Leave of Absence.  If a Participant is authorized by the
Participant’s Employer to take an unpaid leave of absence from the employment
of the Employer for any reason, such Participant shall continue to be eligible
for the benefits provided in Articles 4, 5, 6, 7, 8, or 9 in

 

18

 

accordance with the
provisions of those Articles. However, the Participant shall be excused from
fulfilling his or her Annual Deferral Amount commitment that would otherwise
have been withheld during the remainder of the Plan Year in which the unpaid
leave of absence is taken.  During the
unpaid leave of absence, the Participant shall not be allowed to make any
additional deferral elections.  However,
if the Participant returns to employment, the Participant may elect to defer an
Annual Deferral Amount for the Plan Year following his or her return to
employment and for every Plan Year thereafter while a Participant in the Plan,
provided such deferral elections are otherwise allowed and an Election Form is
delivered to and accepted by the Committee for each such election in accordance
with Section 3.3 above.

 

ARTICLE
12

Termination of Plan, Amendment or Modification

 

12.1                           Termination of Plan.  Although each Employer anticipates that it
will continue the Plan for an indefinite period of time, there is no guarantee
that any Employer will continue the Plan or will not terminate the Plan at any
time in the future.  Accordingly, each
Employer reserves the right to Terminate the Plan (as defined in Section 1.36).  In
the event of a Termination of the Plan, the Measurement Funds available to
Participants following the Termination of the Plan shall be comparable in
number and type to those Measurement Funds available to Participants in the
Plan Year preceding the Plan Year in which the Termination of the Plan is
effective. 
Following a Termination of the Plan, Participant Account
Balances shall remain in the Plan until the Participant becomes eligible for
the benefits provided in Articles 4, 5, 6, 7, 8 or 9 in accordance with the
provisions of those Articles.  The termination of the Plan shall
not adversely affect any Participant or Beneficiary who has become entitled to
the payment of any benefits under the Plan as of the date of termination.

 

12.2                           Amendment. 
The Board may, at any time, amend or modify the Plan in whole or in
part.  Notwithstanding the foregoing,
(i) no amendment or modification shall be effective to decrease the value of a
Participant’s vested Account Balance in existence at the time the amendment or
modification is made, and (ii) no amendment or modification of this Section
12.2 shall be effective.

 

12.3                           Plan Agreement.  Despite the provisions of Sections 12.1 and 12.2 above, if a
Participant’s Plan Agreement contains benefits or limitations that are not in
this Plan document, the Employer may only amend or terminate such provisions
with the written consent of the Participant.

 

12.4                           Effect of Payment.  The full payment of a Participant’s vested
Account Balance under Articles 4, 5, 6, 7, 8, or 9 of the Plan shall
completely discharge all obligations to such Participant and his or her
Beneficiaries under this Plan, and the Participant’s Plan Agreement shall
terminate.

 

ARTICLE
13

Administration

 

13.1                           Committee Duties.  This Plan shall be administered by a
Committee, which shall consist of the Board, or such committee as the Board
shall appoint.  Members of the Committee
may be

 

19

 

Participants under this
Plan.  The Committee shall also have the
discretion and authority to (i) make, amend, interpret, and enforce all
appropriate rules and regulations for the administration of this Plan and
(ii) decide or resolve any and all questions, including interpretations of
this Plan, and find facts necessary to make such determinations as may arise in
connection with the Plan.  Any
individual serving on the Committee who is a Participant shall not vote or act
on any matter relating solely to himself. 
When making a determination or calculation, the Committee shall be
entitled to rely on information furnished by a Participant, the Company or
appropriate experts, including agents and actuarial experts.  The Committee may, in its sole discretion
and from time to time, delegate any administrative or ministerial duties related
to the Plan to any officers or staff of the Company.

 

13.2                           Agents. In the administration of this Plan,
the Committee may, from time to time, employ agents and delegate to them such
administrative duties as it sees fit (including acting through a duly appointed
representative) and may from time to time consult with counsel who may but need
not, be counsel to any Employer.

 

13.3                           Binding Effect of Decisions.  The decision or action of the Committee with
respect to any question arising out of or in connection with the
administration, interpretation and application of the Plan and the rules and
regulations promulgated hereunder shall be final and conclusive and binding
upon all persons having any interest in the Plan.

 

13.4                           Indemnity of Committee.  All Employers shall indemnify and hold
harmless the members of the Committee from any and all claims, losses, damages,
expenses or liabilities arising from any action or failure to act with respect
to this Plan, except in the case of willful misconduct by the Committee, any of
its members or any such Employee.

 

13.5                           Employer Information.  To enable the Committee to perform its
functions, the Company and each Employer shall supply full and timely
information to the Committee, as the case may be, on all matters relating to
the compensation of its Participants, the date and circumstances of the
Retirement, Disability, death or Termination of Employment of its Participants,
and such other pertinent information as the Committee may reasonably require.

 

ARTICLE
14

Other Benefits and Agreements

 

14.1                           Coordination with Other
Benefits.  The benefits
provided for a Participant and Participant’s Beneficiary under the Plan are in
addition to any other benefits available to such Participant under any other
plan or program for employees of the Participant’s Employer.  The Plan shall supplement and shall not
supersede, modify or amend any other such plan or program except as may
otherwise be expressly provided.

 

ARTICLE
15

Claims Procedures

 

15.1                           Presentation of Claim.  Any Participant or Beneficiary of a deceased
Participant (such Participant or Beneficiary being referred to below as a “Claimant”)
may deliver to the Committee a written claim for a determination with respect
to the amounts distributable to such Claimant

 

20

 

from the Plan.  If such a claim relates to the contents of a
notice received by the Claimant, the claim must be made within sixty
(60) days after such notice was received by the Claimant.  All other claims must be made within
180 days of the date on which the event that caused the claim to arise
occurred.  The claim must state with
particularity the determination desired by the Claimant.

 

15.2                           Notification of Decision.  The Committee shall consider a Claimant’s
claim within a reasonable time, but no later than ninety (90) days after
receiving the claim.  If the Committee
determines that special circumstances require an extension of time for
processing the claim, written notice of the extension shall be furnished to the
Claimant prior to the termination of the initial ninety (90) day period.  In no event shall such extension exceed a
period of ninety (90) days from the end of the initial period.  The extension notice shall indicate the
special circumstances requiring an extension of time and the date by which the
Committee expects to render the benefit determination.  The Committee shall notify the Claimant in
writing:

 

(a)                                  that
the Claimant’s requested determination has been made, and that the claim has
been allowed in full; or

 

(b)                                 that
the Committee has reached a conclusion contrary, in whole or in part, to the
Claimant’s requested determination, in which case such notice must set forth in
a manner calculated to be understood by the Claimant:

 

(i)                                     the
specific reason(s) for the denial of the claim, or any part of it;

 

(ii)                                  specific
reference(s) to pertinent provisions of the Plan upon which such denial was
based;

 

(iii)                               a
description of any additional material or information necessary for the
Claimant to perfect the claim, and an explanation of why such material or
information is necessary;

 

(iv)                              an
explanation of the claim review procedure set forth in Section 15.3 below;
and

 

(v)                                 a
statement of the Claimant’s right to bring a civil action under ERISA Section
502(a) following an adverse benefit determination on review.

 

15.3                           Review of a Denied Claim.  On or before sixty (60) days after
receiving a notice from the Committee that a claim has been denied, in whole or
in part, a Claimant (or the Claimant’s duly authorized representative) may file
with the Committee a written request for a review of the denial of the
claim.  The Claimant (or the Claimant’s
duly authorized representative):

 

(a)                                  may,
upon request and free of charge, have reasonable access to, and copies of, all documents,
records and other information relevant to the claim for benefits;

 

(b)                                 may
submit written comments or other documents; and/or

 

(c)                                  may
request a hearing, which the Committee, in its sole discretion, may grant.

 

15.4                           Decision on Review.  The Committee shall render its decision on
review promptly, and no later than sixty (60) days after the Committee
receives the Claimant’s written request for a review of the denial of the
claim.  If the Committee determines that
special circumstances require an extension of time, such extension may not
exceed a period of sixty (60) days from the end of the

 

21

 

initial period.  In rendering its decision, the Committee
shall take into account all comments, documents, records and other information
submitted by the Claimant relating to the claim, without regard to whether such
information was submitted or considered in the initial benefit
determination.  The decision must be
written in a manner calculated to be understood by the Claimant, and it must
contain:

 

(a)                                  specific
reasons for the decision;

 

(b)                                 specific
reference(s) to the pertinent Plan provisions upon which the decision was
based;

 

(c)                                  a
statement that the Claimant is entitled to receive, upon request and free of
charge, reasonable access to and copies of, all documents, records and other
information relevant (as defined in applicable ERISA regulations) to the
Claimant’s claim for benefits; and

 

(d)                                 a
statement of the Claimant’s right to bring a civil action under ERISA Section
502(a).

 

15.5                           Legal Action. 
A Claimant’s compliance with the foregoing provisions of this
Article 15 is a mandatory prerequisite to a Claimant’s right to commence
any legal action with respect to any claim for benefits under this Plan.  

 

ARTICLE
16

Trust

 

16.1                           Establishment of the Trust.  In
order to provide assets from which to fulfill the obligations of the
Participants and their beneficiaries under the Plan, the Company may establish
a trust by a trust agreement with a third party, the trustee, to which each
Employer may, in its discretion, contribute cash or other property, including
securities issued by the Company, to provide for the benefit payments under the
Plan, (the “Trust”).

 

16.2                           Interrelationship of the Plan and the Trust.  The provisions of the Plan and the Plan
Agreement shall govern the rights of a Participant to receive distributions
pursuant to the Plan.  The provisions of
the Trust shall govern the rights of the Employers, Participants and the
creditors of the Employers to the assets transferred to the Trust.  Each Employer shall at all times remain
liable to carry out its obligations under the Plan.

 

16.3                           Distributions From the
Trust.  Each Employer’s
obligations under the Plan may be satisfied with Trust assets distributed
pursuant to the terms of the Trust, and any such distribution shall reduce the
Employer’s obligations under this Plan.

 

ARTICLE
17

Miscellaneous

 

17.1                           Status of Plan.  The Plan is not intended to be a plan
qualified within the meaning of Code Section 401(a) and is intended to be
“unfunded and maintained by an employer primarily for the purpose of providing
deferred compensation for a select group of management or highly compensated
employees” within the meaning of ERISA Sections 201(2), 301(a)(3) and 401(a)(1).  The Plan shall be administered and
interpreted in a manner consistent with that intent.

 

22

 

17.2                           Unsecured General Creditor.  Participants and their Beneficiaries, heirs,
successors and assigns shall have no legal or equitable rights, interests or
claims in any property or assets of an Employer.  For purposes of the payment of benefits under this Plan, any and
all of an Employer’s assets shall be, and remain, the general, unpledged
unrestricted assets of the Employer.  An
Employer’s obligation under the Plan shall be merely that of an unfunded and
unsecured promise to pay money in the future.

 

17.3                           Employer’s Liability.  An Employer’s liability for the payment of
benefits shall be defined only by the Plan and the Plan Agreement, as entered
into between the Employer and a Participant. 
An Employer shall have no obligation to a Participant under the Plan
except as expressly provided in the Plan and his or her Plan Agreement.

 

17.4                           Nonassignability.  Neither a Participant nor any other person
shall have any right to commute, sell, assign, transfer, pledge, anticipate,
mortgage or otherwise encumber, transfer, hypothecate, alienate or convey in
advance of actual receipt, the amounts, if any, payable hereunder, or any part
thereof, which are, and all rights to which are expressly declared to be,
unassignable and non-transferable.  No
part of the amounts payable shall, prior to actual payment, be subject to
seizure, attachment, garnishment or sequestration for the payment of any debts,
judgments, alimony or separate maintenance owed by a Participant or any other
person, be transferable by operation of law in the event of a Participant’s or
any other person’s bankruptcy or insolvency or be transferable to a spouse as a
result of a property settlement or otherwise.

 

17.5                           Not a Contract of Employment.  The terms and conditions of this Plan shall
not be deemed to constitute a contract of employment between any Employer and a
Participant.  Such employment is hereby
acknowledged to be an “at will” employment relationship that can be terminated
at any time for any reason, or no reason, with or without cause, and with or
without notice, unless expressly provided in a written employment agreement.  Nothing in this Plan shall be deemed to give
a Participant the right to be retained in the service of any Employer, either
as an Employee or a Director, or to interfere with the right of any Employer to
discipline or discharge a Participant at any time.

 

17.6                           Furnishing Information.  A Participant or his or her Beneficiary will
cooperate with the Committee by furnishing any and all information requested by
the Committee and take such other actions as may be requested in order to
facilitate the administration of the Plan and the payments of benefits
hereunder, including but not limited to taking such physical examinations as
the Committee may deem necessary.

 

17.7                           Terms. 
Whenever any words are used herein in the masculine, they shall be
construed as though they were in the feminine in all cases where they would so
apply; and whenever any words are used herein in the singular or in the plural,
they shall be construed as though they were used in the plural or the singular,
as the case may be, in all cases where they would so apply.

 

17.8                           Captions.  The captions of the articles, sections and paragraphs of this
Plan are for convenience only and shall not control or affect the meaning or
construction of any of its provisions.

 

17.9                           Governing Law.  Subject to ERISA, the provisions of this Plan
shall be construed and interpreted according to the internal laws of the State
of Nevada without regard to its conflicts of laws principles.

 

23

 

17.10                     Notice.  Any notice or filing required or permitted
to be given to the Committee under this Plan shall be sufficient if in writing
and hand-delivered, or sent by registered or certified mail, to the address
below: 

 

Las Vegas Sands,
Inc.

Attn: Chairman of the Compensation Committee

3355 Las Vegas
Boulevard South

Las Vegas, Nevada
89109

 

Such notice shall
be deemed given as of the date of delivery or, if delivery is made by mail, as
of the date shown on the postmark on the receipt for registration or
certification.

 

Any notice or
filing required or permitted to be given to a Participant under this Plan shall
be sufficient if in writing and hand-delivered, or sent by mail, to the last
known address of such Participant.

 

17.11                     Successors.  The provisions of this Plan shall bind and
inure to the benefit of each Participant’s Employer and its successors and
assigns and the Participant and the Participant’s designated Beneficiaries.

 

17.12                     Spouse’s
Interest. 
The interest in the benefits hereunder of a spouse of a Participant who
has predeceased the Participant shall automatically pass to the Participant and
shall not be transferable by such spouse in any manner, including but not
limited to such spouse’s will, nor shall such interest pass under the laws of
intestate succession.

 

17.13                     Validity.  In case any provision of this Plan shall be
illegal or invalid for any reason, said illegality or invalidity shall not
affect the remaining parts hereof, but this Plan shall be construed and
enforced as if such illegal or invalid provision had never been inserted
herein.

 

17.14                     Incompetent.  If the Committee determines in its
discretion that a benefit under this Plan is to be paid to a minor, a person
declared incompetent or to a person incapable of handling the disposition of
that person’s property, the Committee may direct payment of such benefit to the
guardian, legal representative or person having the care and custody of such
minor, incompetent or incapable person. 
The Committee may require proof of minority, incompetence, incapacity or
guardianship, as it may deem appropriate prior to distribution of the
benefit.  Any payment of a benefit shall
be a payment for the account of the Participant and the Participant’s
Beneficiary, as the case may be, and shall be a complete discharge of any
liability under the Plan for such payment amount.

 

17.15                     Court Order.  Notwithstanding the language in Section 17.4
to the contrary, the Committee is authorized to comply with any court order in
any action in which the Plan or the Committee has been named as a party,
including any action involving a determination of the rights or interests in a
Participant’s benefits under the Plan. 
Notwithstanding the foregoing, the Committee shall interpret this
provision in a manner that is consistent with applicable tax law, including but
not limited to guidance issued after the effective date of this Plan.

 

17.16                     Insurance.  The Employers, on their own behalf or, if
applicable, on behalf of the trustee of the Trust, and, in their sole
discretion, may apply for and procure insurance on the life of a

 

24

 

Participant, in such
amounts and in such forms as the Employer or Trustee of the Trust may
elect.  The Employers or the trustee of
the Trust, as the case may be, shall be the sole owner and beneficiary of any
such insurance.  The Participant shall
have no interest whatsoever in any such policy or policies, and at the request
of the Employers shall submit to medical examinations and supply such
information and execute such documents as may be required by the insurance
company or companies to whom the Employers have applied for insurance.

 

 

IN WITNESS WHEREOF, this
Plan document is adopted as of November 18, 2004.

 

	
   

  	
  Las Vegas Sands, Inc.,
  a Nevada corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

25

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