EMPLOYMENT AGREEMENT
THIS AGREEMENT ("Agreement") is made on November 1, 1995 between Las
Vegas Sands, Inc., a Nevada corporation having its principal place of business
at 0000 Xxx Xxxxx Xxxxxxxxx Xxxxx, Xxx Xxxxx, Xxxxxx, d/b/a Sands Hotel Casino
("LVSI") and Xxxxxx X. Xxxxxxxxx, an individual residing at 0000 Xxxxxxxx Xxxxx,
Xxxxxxx, XX 00000 ("Xxxxxxxxx").
WHEREAS:
LVSI is engaged in the business of owning and operating a
hotel/casino on property owned by LVSI on the "Strip" in Las Vegas, Nevada
(the "Sands Property");
LVSI desires to reconstruct and expand the existing hotel/casino and
to further develop the adjacent parcels on the Sands Property and to
construct new improvements thereon (the "Development Project");
In furtherance of its business and development plans, LVSI has
need of qualified, experienced, management personnel;
Xxxxxxxxx has represented to LVSI that Xxxxxxxxx possesses
sufficient qualifications, experience and expertise in hotel and casino
operations and management to fulfill the terms of the employment described
in this Agreement; and
LVSI has offered to employ Xxxxxxxxx, and Xxxxxxxxx desires to
become employed by LVSI, under the terms, provisions and conditions set
forth herein;
NOW, THEREFORE, in consideration of the premises and of the mutual
covenants, understandings, representations, warranties, undertakings and
promises hereinafter set forth, and intending to be legally bound thereby, LVSI
and Xxxxxxxxx agree as follows:
1. Employment. LVSI shall employ Xxxxxxxxx, during the term and
subject to the conditions set forth in this Agreement, to serve as Senior Vice
President of LVSI or in such other managerial or executive capacity as the Board
of Directors of LVSI (sometimes hereinafter referred to as "the Board") may from
time to time determine.
2. Duties. Xxxxxxxxx shall have such powers, duties and
responsibilities as are generally associated with his office, as the same may be
modified and/or assigned to Xxxxxxxxx
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from time to time by the Chairman of the Board or President, and subject to the
supervision, direction and control of the Chairman and the Board and President,
including but not limited to:
(a) participation and involvement in the proposed development
activities of LVSI, including the planning, financing, construction and
implementation stages, as shall be requested by the Chairman of the Board;
(b) the efficient operation and maintenance of the hotel and casino
properties of LVSI;
(c) the promotion, marketing and sale of the goods and services
offered by LVSI;
(d) the preparation of budgets and allocation of funds;
(e) the establishment or continuation of adequate management
reporting and control systems;
(f) the recruitment, selection, training, delegation of duties and
responsibilities, and supervision, of subordinates; and
(g) the direction, review and oversight of all programs, systems,
departments and functions related to the management and administration of LVSI.
3. Performance. Xxxxxxxxx hereby unconditionally accepts the
employment described herein under the terms and conditions set forth in this
Agreement. Xxxxxxxxx covenants and agrees faithfully and diligently to perform
all of the duties of his employment, devoting his full business and professional
time, attention, energy and ability to promote the business interests of LVSI.
Xxxxxxxxx further agrees that during the period of his employment with LVSI, he
will not engage in any other business or professional pursuit whatsoever unless
LVSI shall consent thereto in writing.
4. Term. The parties acknowledge that Xxxxxxxxx is presently under
contract to another employer, which contract will expire on December 31, 1995.
The term of Xxxxxxxxx'x employment hereunder shall commence (the "Effective
Date") on the earlier of (a) January 1, 1996, or (b) such earlier date on which
Xxxxxxxxx shall advise LVSI that he has been released from his prior contractual
commitment and is ready to report for work with LVSI. The initial term of this
Agreement (the "Initial Term") shall expire on December 31, 1998, unless sooner
terminated as provided herein. The Initial Term may be automatically extended by
LVSI for an additional two years (the "Renewal Term") upon the giving of written
notice to Xxxxxxxxx not less than 120 days prior to the expiration of the
Initial Term.
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5. Licensing Requirement. Xxxxxxxxx has represented to LVSI that
he ispresently licensed by the New Jersey Casino Control Commission. The parties
acknowledge that, in order to discharge the duties required under this Agreement
and to hold the Options provided for herein, Xxxxxxxxx must apply for and obtain
a casino key employee and equity holder license ("the License") issued by the
Nevada Gaming Commission upon the recommendation of the state Gaming Control
Board (collectively, the "Nevada Gaming Authorities"), pursuant to the
provisions of applicable Nevada laws and regulations. LVSI and Xxxxxxxxx agree
to cooperate with the Nevada Gaming Authorities, the Board and with each other
in applying for the License and in removing any objections that may be raised by
the Nevada Gaming Authorities in connection with the granting of the License. If
the Nevada Gaming Authorities shall refuse to grant the License to Xxxxxxxxx,
then this Agreement shall terminate and neither LVSI nor Xxxxxxxxx shall have
any further obligation hereunder.
6. Compensation. For all of the services to be rendered by Xxxxxxxxx
to LVSI hereunder, LVSI shall pay Xxxxxxxxx the following:
(a) Salary. During the Initial Term, Xxxxxxxxx shall receive a
salary of Three Hundred Sixty Nine Thousand Seven Hundred and Seventy Dollars
($369,770) per year, payable in accordance with the usual payroll practices of
LVSI. During the Renewal Term, if any, this salary shall be increased by a
percentage equal to the percentage increase in the Consumer Price Index, All
Urban Consumers, All Items, Las Vegas Area (the "Index") between the last
published Index as of the date on which the Renewal Term begins and the last
published Index as of the date which is one year earlier. No such adjustment
shall be made in the event that, prior to the commencement of the Renewal Term,
LVSI has established for Xxxxxxxxx a written incentive compensation program.
Except as provided herein, Xxxxxxxxx shall not be considered for any additional
incentive or bonus compensation.
(b) Employee Benefit Plans. LVSI shall include Xxxxxxxxx in
any group health, medical, dental, hospitalization, life or accident insurance
plans, and any qualified pension, profit sharing or retirement plans, which may
be placed in effect or maintained by LVSI during the Term hereof for the benefit
of its employees generally, subject to all restrictions and limitations
contained in such plans or established by governmental regulation.
(c) Expense Reimbursement. Xxxxxxxxx is authorized to incur
such reasonable expenses as may be necessary for the performance of his duties
hereunder in accordance with the policies of LVSI established and in effect from
time to time and, except as may be otherwise agreed, LVSI will reimburse
Xxxxxxxxx for all such authorized expenses upon
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submission of an itemized accounting and substantiation of such expenditures
adequate to secure for LVSI a tax deduction for the same in accordance with
applicable Internal Revenue Service guidelines.
(d) Vacations and Holidays. Xxxxxxxxx shall be entitled to
four weeks of paid vacation leave per year at such times as may be requested by
Xxxxxxxxx and approved by LVSI. No more than three weeks of vacation shall be
taken consecutively. Up to two weeks of vacation may be carried over to the
following year (but not to the next). In addition, Xxxxxxxxx may take the
following paid holidays or, at LVSI's option, an equivalent number of paid days
off: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day
and Christmas Day.
(e) Licensing Expenses. LVSI shall pay all fees and expenses
incurred by Xxxxxxxxx in securing and maintaining such licenses and permits as
may be required by the Nevada Gaming Authorities in order to perform his duties
under this Agreement.
(f) Relocation Expenses. LVSI shall reimburse Xxxxxxxxx for
the following expenses associated with Xxxxxxxxx'x relocation to Las Vegas,
Nevada ("Relocation Expenses"):
(i) LVSI shall engage and pay for the services of a
professional moving company to pack, ship, store (for up to 30
days), insure in transit, and unpack Xxxxxxxxx'x family's household
goods and personal property, including automobiles, from his present
home to his new living quarters in Las Vegas, Nevada. However, LVSI
will not pay the cost of shipping such items as boats, trailers, or
perishables.
(ii) LVSI shall reimburse Xxxxxxxxx for reasonable
expenses incurred by him and his family in connection with travel
and lodging expenses for house hunting trips made on or before July
1, 1996, provided that travel arrangements are made through LVSI's
affiliate, GWV Travel of Needham, Massachusetts ("GWV");
(iii) The cost of reasonable travel by Xxxxxxxxx between
New Jersey and Nevada on or before August 1, 1996 shall be paid by
LVSI, travel arrangements to be made through GWV;
(iv) LVSI shall provide, at no cost to Xxxxxxxxx,
temporary living accommodations and reasonable related expenses in
its hotel facility or elsewhere until August 1, 1996 or such earlier
date as his family shall relocate to Nevada;
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(v) If requested by Xxxxxxxxx on or before July 31,
1996, LVSI shall, in connection with Xxxxxxxxx'x purchase of a new
home in Nevada, make or arrange for an equity loan secured by
Xxxxxxxxx'x current home in New Jersey which loan shall be repayable
upon the sale of that home;
(vi) LVSI shall track and report all expenses paid in
connection with Xxxxxxxxx'x relocation in accordance with all
Internal Revenue Service rules and regulations in effect in 1996;
(vii) The parties expressly agree and acknowledge that
other costs incurred by Xxxxxxxxx in connection with the relocation
of his principal residence from New Jersey to Nevada shall be borne
by Xxxxxxxxx and not LVSI; and
(viii) If, and only if, the net proceeds (sale price
less selling expenses) from the sale of Xxxxxxxxx'x New Jersey house
shall be insufficient to pay off the balance of any mortgages
secured thereby (and in existence on September 1, 1995), the amount
of such insufficiency being hereinafter referred to as the "Mortgage
Deficit," LVSI shall reimburse Xxxxxxxxx for the lesser of the
Mortgage Deficit or the brokerage commission payable by Xxxxxxxxx in
connection with the sale.
provided, however, that if Xxxxxxxxx'x employment with LVSI shall terminate by
reason of a Cause Termination, Xxxxxxxxx Breach Termination, Voluntary
Termination, or Licencing Termination (all as defined in Section 11 (a)) during
the first twelve (12) months after the Effective Date, he shall repay 75% of
such Relocation Expenses to LVSI, and if such a termination shall occur after 12
months but before 24 months, he shall repay 50% of such Relocation Expenses to
LVSI, in each case such reimbursement to occur within thirty (30) days following
the Termination Event.
(g) Lump Sum Auto. In lieu of any provision for the use of a
company-owned vehicle, or for any allowance for an automobile lease, insurance,
fuel, repair and maintenance expenses, LVSI shall pay to Xxxxxxxxx an annual
lump sum of $7,200.00 which sum shall be paid in installments which shall be
added to and paid with the salary provided for in Section 6(a) hereof. If LVSI
shall ever adopt a policy or program to provide selected executives with
company-owned or leased vehicles, it shall include Xxxxxxxxx in that policy or
program and the lump sum provided for herein may cease.
7. Stock Options. In consideration of the execution and performance
of this Agreement, in addition to all other sums payable hereunder, LVSI or its
principal shareholder,
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Xxxxxxx X. Xxxxxxx ("Xxxxxxx"), (XXXX and Xxxxxxx being hereinafter sometimes
referred to, collectively or individually, as "Grantor") shall grant to
Xxxxxxxxx the right to acquire certain shares of the common capital stock of
LVSI (or of such alternative or other entity as may be formed by Grantor to
construct and own the Development Project, as limited pursuant to Section 7(e)
hereof, or to enter into a joint-venture or other arrangement to accomplish the
same) ("Shares"), as follows:
(a) Following execution of this Agreement and receipt of the
License, Grantor shall grant to Xxxxxxxxx options (the "Options") to acquire
Shares representing one percent (1%) of the Shares which shall be issued and
outstanding upon the issuance of all Shares for which options have been or may
be granted under this Agreement or any of the other employment agreements
executed simultaneous herewith or presently contemplated (the "Fully Diluted
Number").
(b) One-half of the Options shall be exercisable by Xxxxxxxxx
on the date that the first phase of the Development Project, comprised of a
newly-constructed major hotel/casino shall open for business to the public
("Grand Opening Date") and one-sixth of the Options shall be exercisable by
Xxxxxxxxx on each of the next three anniversaries of the Grand Opening Date (the
"Subsequent Vesting Dates"), provided, however, that if the Grand Opening Date
shall occur after January 1, 1998, the Subsequent Vesting Dates shall be
December 31, 2000 (the "Final Vesting Date") and two earlier dates such as shall
divide into three equal periods the time between the Grand Opening Date and the
Final Vesting Date.
(c) Upon exercise of the Options, Xxxxxxxxx shall pay to the
Grantor a price for each of the Shares (the "Exercise Price") equal to (i) the
value, at the time of a financing transaction for the purpose of constructing a
hotel/casino, determined by the investment banking firm retained by LVSI to
advise LVSI with respect to such transaction (the "Investment Banking Value"),
of the land owned by LVSI on the Effective Date underlying the Development
Project (as defined and limited by Subparagraph (e) below), plus (ii) the amount
of any cash equity contributed to LVSI by Xxxxxxx or persons other than
Xxxxxxxxx after the date hereof and prior to the date on which such Options are
exercised, plus (iii) the value of any real or personal property similarly
contributed as it appears on the books of LVSI; divided by (iv) the Fully
Diluted Number.
(d) Each and all of the Options shall expire ("the Option
Expiration Date") on the earlier of (i) the date which is three (3) days prior
to the effective date of any public offering of LVSI stock as the same shall be
referenced in a request for acceleration or other
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document filed by LVSI with the U.S. Securities and Exchange Commission, (ii)
the date which is three (3) days prior to the designated closing date in any
agreement providing for the merger of LVSI or the sale of all or substantially
all of its assets or a majority of its stock (other than a transaction pursuant
to Section 12 hereof), or (iii) eight (8) years from the date on which the
Options were granted; provided that all Options granted but not otherwise
exercisable by the Option Expiration Date shall be accelerated and shall become
exercisable for a period of ten (10) days (the "Accelerated Exercise Period")
immediately preceding the Option Expiration Date, provided that no Options shall
expire pursuant to (i) or (ii) above unless LVSI has given Xxxxxxxxx notice of
the Accelerated Exercise Period promptly upon its learning of the time (or
approximate time) when the Accelerated Exercise Period will occur.
(e) Xxxxxxxxx understands and acknowledges that the
Development Project shall include a retail merchandise shopping or other
consumer "experience" or attraction (the "Retail Portion"), ownership of which
shall be in an entity other than that for which the Options shall have been
issued. It is anticipated that the entity issuing the Shares pursuant to the
Options granted hereunder shall own and operate only one or more hotel/casinos
and not the Retail Portion of the Development Project, the Sands Expo and
Convention Center, or related parking facilities which, together with the land
(or other interest in real estate) on which they are located, may be owned by
or, after the date hereof, be transferred to, persons affiliated with LVSI and
operated in coordination with the hotel/casinos of LVSI.
(f) Shares issued to Xxxxxxxxx hereunder may be pledged to a
financial institution to secure a loan the proceeds of which are used to pay to
LVSI the Exercise Price or to pay taxes payable by Xxxxxxxxx in connection with
his acquisition of the Shares. The Options granted and Shares issued hereunder
may not be otherwise assigned, transferred or pledged by Xxxxxxxxx, and
Xxxxxxxxx will have no rights as a shareholder in LVSI unless and until Shares
have been issued to him hereunder. Except as set forth above, the Shares shall
be subject to restrictions on transfer and to such additional restrictions as
shall be imposed by the Articles of Incorporation or Bylaws of LVSI or by
applicable law.
8. Confidentiality. Xxxxxxxxx agrees that he will hold in strictest
confidence and, without the prior express written approval of LVSI, will not
disclose to any person, firm, corporation or other entity, any confidential
information which he has acquired or may hereafter acquire during his employment
by LVSI pertaining to the business or affairs of LVSI, including but not limited
to (i) proprietary information or other documents concerning LVSI's policies,
prices, systems, methods of operation, contractual arrangements, customers or
suppliers; (ii) LVSI's marketing methods, credit and collection techniques and
files; and (iii) LVSI's trade
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secrets and other "know how" or information concerning its business
and affairs not of a public nature. The covenant and agreement set forth in this
Section shall apply during Xxxxxxxxx'x employment by LVSI and shall survive
termination of this Agreement by any means and shall remain binding upon
Xxxxxxxxx without regard to the passage of time or other events.
9. Restrictive Covenant. Xxxxxxxxx shall not, either during the term
of this Agreement or until December 31, 1998 (the "Restrictive Covenant
Expiration Date") if the Agreement terminates prior to the end of the Initial
Term by reason of a Cause Termination, Xxxxxxxxx Breach Termination, Voluntary
Termination, or Licensing Termination (all as defined in Section 11 (a)), or by
reason of an LVSI Breach Termination, Constructive Termination, or Involuntary
Termination if and only if LVSI is paying to Xxxxxxxxx the amount set forth in
Section 11 (d) (iv), directly or indirectly, either as principal, agent,
employee, consultant, partner, officer, director, shareholder, or in any other
individual or representative capacity, own, manage, finance, operate, control or
otherwise engage or participate in any manner or fashion in, any hotel or casino
in the City of Las Vegas or Xxxxx County, Nevada. In the event that this
Agreement shall be extended beyond the Initial Term, the Restrictive Covenant
Expiration Date shall be extended to the second anniversary of the date of any
Termination Event. Xxxxxxxxx acknowledges and agrees that the restrictive
covenant contained in this Section is reasonable as to duration, terms, and
geographical scope and that the covenant protects the legitimate interests of
LVSI and imposes no undue hardship on Xxxxxxxxx and is not injurious to the
public.
10. Disability. If, during his employment by LVSI, Xxxxxxxxx shall,
in the opinion of an independent physician selected by agreement between the
Board and Xxxxxxxxx, become suddenly and immediately unable to perform the
duties of his employment due to severe illness or accident or other grave mental
or physical incapacity, or if Xxxxxxxxx shall be unable to perform the duties of
his employment for a continuous period of three months, then LVSI shall have the
right to suspend in whole or in part the future payments of compensation
hereunder or to terminate Xxxxxxxxx'x employment hereunder in accordance with
the provisions of Section 11.
11. Termination.
(a) Notwithstanding the provisions of Section 4 of this
Agreement, Xxxxxxxxx'x employment hereunder shall terminate upon the occurrence
of any of the following events (each, a "Termination Event"):
(i) Xxxxxxxxx'x death (a "Death Termination");
(ii) the giving of written notice of termination by LVSI
based upon
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Xxxxxxxxx'x disability, as defined in Section 10 hereof (a
"Disability Termination");
(iii) the giving of written notice to Xxxxxxxxx by LVSI
that he is discharged for Cause (as hereinafter defined) (a "Cause
Termination");
(iv) the giving of written notice by LVSI to Xxxxxxxxx
of a material breach of this Agreement by Xxxxxxxxx, which breach
remains uncured for a period of ten (10) days after receipt of such
notice by Xxxxxxxxx (a "Xxxxxxxxx Breach Termination");
(v) the giving of written notice by Xxxxxxxxx to LVSI of
a material breach of this Agreement by LVSI, which breach remains
uncured for a period of ten (10) days following receipt of such
notice by LVSI (an "LVSI Breach Termination");
(vi) the giving of written notice by Xxxxxxxxx to LVSI
that a Constructive Termination (as hereinafter defined) has
occurred and that he has elected to resign, in which event
termination shall occur thirty (30) days after delivery of such
notice unless such Constructive Termination has been cured (a
"Constructive Termination");
(vii) the giving of sixty (60) days written notice to
Xxxxxxxxx by LVSI that LVSI has chosen to terminate this Agreement
without Cause (an "Involuntary Termination");
(viii) the giving of written notice by Xxxxxxxxx that he
has chosen to terminate his employment with LVSI, no breach or
Constructive Termination by LVSI having occurred, in which case this
Agreement shall terminate sixty (60) days after receipt of such
notice by LVSI (a "Voluntary Termination");
(ix) the refusal of the Nevada Gaming Authorities to
grant to Xxxxxxxxx the License described in Section 5 hereof or,
following the grant of the License, the revocation or suspension of
the License for a period longer than thirty (30) days (a "Licensing
Termination"); or
(x) if no notice of extension for a Renewal Term is sent
by LVSI upon the discharge of Xxxxxxxxx at the end of the Initial
Term (a "Non-Renewal Termination") or at any time thereafter (a
"Post-Contract Termination").
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(b) "Cause," as used in Subsection (a)(iii) above, shall mean:
(i) conviction of a felony, misappropriation of any
material funds or property of LVSI, commission of fraud or
embezzlement with respect to LVSI, or any material act or acts of
dishonesty relating to Xxxxxxxxx'x employment by LVSI resulting or
intended to result in direct or indirect personal gain or enrichment
at the expense of LVSI;
(ii) use of alcohol or drugs that renders Xxxxxxxxx
materially unable to perform the functions of his job or carry out
his duties to LVSI;
(iii) materially failing to fulfill the duties set forth
in Section 2 hereof; or
(iv) committing any act or acts of serious and wilful
misconduct (including disclosure of confidential information) that
is likely to cause a material adverse effect on the business of
LVSI;
provided that, with respect to (iii) or (iv) above, LVSI shall have first
provided Xxxxxxxxx with written notice stating with specificity the acts, duties
or directives Xxxxxxxxx has committed or failed to observe or perform, and
Xxxxxxxxx shall not have corrected the acts or omissions complained of within
thirty (30) days of receipt of such notice. Any dispute between the parties as
to whether a "cause" has occurred shall be resolved by binding Arbitration in
Las Vegas, Nevada before a single arbitrator jointly selected by the parties or,
if the parties cannot agree, by the American Arbitration Association, such
arbitration to be conducted in accordance with the rules of the American
Arbitration Association.
(c) "Constructive Termination," as used in Subsection (a)(vi) above,
shall mean:
(i) the failure of LVSI to re-elect Xxxxxxxxx as a
named officer of LVSI;
(ii) a material change in the duties and
responsibilities of office that would cause Xxxxxxxxx'x position to
have less dignity, importance or scope than intended at the
Effective Date and as set forth herein;
(iii) liquidation, dissolution or bankruptcy of LVSI;
or
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(iv) failure of LVSI to proceed with the Development
Project, including obtaining financing for the Development Project,
within eighteen (18) months after the Effective Date.
(d) Termination pursuant to this Section shall have the following
consequences:
(i) in the case of a Death Termination, salary shall be
paid through the date of death, all unexercised Options shall be
automatically canceled and the Shares issued to Xxxxxxxxx shall be
redeemed by LVSI for a price payable by LVSI to Xxxxxxxxx'x estate
equal to all sums paid by Xxxxxxxxx for Shares, plus the difference
between (x) the Exercise Price paid or payable for all Shares
purchased pursuant to Options and for all Options granted but not
yet exercised, and (y) the Fair Market Value (as hereafter defined)
of such Shares, which price shall be payable by LVSI, with interest
at the Applicable Federal Rate (as hereafter defined) on the date of
death, in thirty-six (36) equal consecutive monthly installments of
interest and principal commencing ninety (90) days following the
date on which Fair Market Value is established;
(ii) in the case of a Disability Termination, salary,
less any applicable disability insurance payments, shall be
continued for a period of six months following the date of
termination, and all Options and Shares issued to Xxxxxxxxx shall be
treated as described in the immediately preceding Subsection (i);
(iii) in the case of a Cause Termination, Xxxxxxxxx
Breach Termination, Voluntary Termination, or Licensing Termination,
salary and benefits payable to Xxxxxxxxx shall immediately cease,
subject to any requirements of law, all unexercised Options held by
Xxxxxxxxx shall be canceled and forfeited, Shares held by Xxxxxxxxx
shall be redeemed by LVSI for a price payable by LVSI to Xxxxxxxxx
equal to the lesser of the Exercise Price for such Shares or the
Fair Market Value on the date of termination, which price shall be
payable, with interest at the Applicable Federal Rate on the date of
termination, in sixty (60) equal consecutive monthly installments of
interest and principal commencing ninety (90) days following the
date on which Fair Market Value is established;
(iv) in the case of an LVSI Breach Termination,
Constructive Termination, or Involuntary Termination, LVSI shall
continue to pay to Xxxxxxxxx the salary set forth in Section 6(a)
hereof for the Term of this Agreement unless and until Xxxxxxxxx
shall become employed elsewhere in which event LVSI shall pay only
the difference, if any, between the income earned in such
employment,
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including salary and bonus compensation, and the salary set forth in
Section 6(a) hereof; provided further that all unexercised Options
held by Stone shall be canceled and forfeited, Shares held by Stone
shall be redeemed by LVSI for a price payable by LVSI to Stone equal
to the greater of the Exercise Price for such Shares or the Fair
Market Value on the date of termination, which price shall be
payable, with interest at the Applicable Federal Rate on the date of
termination, in thirty-six (36) equal consecutive monthly
installments of interest and principal commencing ninety (90) days
following the date in which Fair Market Value is established. In the
case of a Non-Renewal Termination or a Post-Contract Termination,
salary shall be paid only through the date of discharge;
(v) in the case of a Non-Renewal Termination or a
Post-Contract Termination, all Options and Shares issued to
Xxxxxxxxx shall be treated as described in Subsection (i) above.
(e) "Fair Market Value" as used in this Section, shall mean
and refer tothe fair market value as agreed by LVSI and Xxxxxxxxx (or, in the
case of a Death Termination or Disability Termination, his personal or legal
representative) or, in the absence of such agreement, as determined by an
appraisal conducted by a national investment banking firm selected and paid by
LVSI. "Applicable Federal Rate," as used herein, shall mean and refer to the
rate published from time to time by the U.S. Internal Revenue Service and
designated as the applicable federal rate, as such rate shall prevail on the
date on which the Redemption Note (as hereafter defined) is issued.
(f) Any redemption of Shares provided for in this Section
shall take place as follows: Not later than thirty (30) days following any
Termination Event, Xxxxxxxxx (or his personal representative) shall surrender to
LVSI all certificates for Shares and, whether so surrendered or not, such Shares
shall thereupon be canceled. LVSI shall, upon receipt of the Shares and
determination of the Fair Market Value as set forth above, deliver to Xxxxxxxxx
(or his personal representative) a promissory note (the "Redemption Note") for
the sum payable to Xxxxxxxxx in respect of his Shares (the "Redemption Price").
The Redemption Note shall be payable over the term hereinabove provided, with
interest fixed at the Applicable Federal Rate, in equal consecutive monthly
installments of interest and principal. The Redemption Note and all payments
thereunder shall be, in all respects, subject to the limitations and
restrictions, if any, imposed by any note, credit facility, indenture, mortgage,
line of credit or similar contractual arrangement with an institutional or
similar lender by which LVSI is or may become bound ("Lender Restrictions"),
whether in the form of financial covenants or otherwise and whether arising
prior to or after execution and delivery of the Redemption Note. No failure by
LVSI to pay sums due on the Redemption Note on account of the Lender
Restrictions shall result in a
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default under the Redemption Note and all such payments, to the extent (and only
to the extent) prohibited by the Lender Restrictions, shall be deferred and
accrue until such time as they may be paid without violating the Lender
Restrictions.
(g) In the event that, at the time of any Termination Event,
the Shares shall be publicly traded, either on a registered securities exchange
or in the over-the-counter market, all provisions hereof providing for the
redemption of Shares by LVSI shall be void.
12. Assignment and Assumption. LVSI and Xxxxxxxxx acknowledge and
agree that the Development Project or any subsequent public offering of
securities may lead to a restructuring or other reorganization of LVSI or its
assets. In such event, this Agreement may be assigned to, and assumed by, any
new or different corporation, limited liability company or other entity that
shall own the hotel/casinos constructed on the Sands Property and Xxxxxxxxx'x
employment shall continue pursuant to the terms hereof as if such assignee,
rather than LVSI, had been an original party to this Agreement. Upon such
assignment, all rights and obligations of LVSI hereunder shall inure to the
benefit of and be binding upon the designated assignee. No such assignment shall
relieve LVSI of its obligations hereunder to the extent that those obligations
are not satisfied or discharged by the assignee.
13. Approval of Agreement. Xxxxxxxxx and LVSI acknowledge that the
terms of this Agreement are subject to the approval of the Nevada Gaming
Authorities and each agrees to make reasonable modifications in this Agreement,
if necessary, to secure such approval. If this Agreement shall be disapproved by
the Nevada Gaming Authorities and reasonable modifications shall be insufficient
to obtain such approval, then this Agreement shall terminate and neither party
shall have any further responsibility to the other hereunder.
14. Miscellaneous Provisions.
(a) [Notices] All notices and other communications required or
permitted hereunder shall be in writing and shall be deemed to have been duly
given if sent via a national overnight courier service or by certified mail,
return receipt requested, postage prepaid, addressed to the parties as follows:
If to Xxxxxxxxx, to:
Xxxxxx X. Xxxxxxxxx
0000 Xxxxxxxx Xxxxx
Xxxxxxx, Xxx Xxxxxx 00000
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If to LVSI, to:
Las Vegas Sands, Inc.
0000 Xxx Xxxxx Xxxxxxxxx Xxxxx
Xxx Xxxxx, Xxxxxx 00000
Att: Xxxxxxx X. Xxxxxxx, Chairman
With a copy to:
Xxxx X. Xxxxxxx
Vice President and General Counsel
The Interface Group
000 Xxxxx Xxxxxx
Xxxxxxx, Xxxxxxxxxxxxx 00000
or to such other address as any party shall request of the others by giving
notice in accordance with this Section.
(b) [Approval or Consent] Whenever under any provision of this
Agreement the approval or consent of either party is required, said approval or
consent shall be given or denied in a prompt manner.
(c) [Integration] This Agreement is the result of substantial
negotiations between the parties, represents the complete agreement of the
parties with respect to the subject matter hereof, and supersedes all prior
agreements and understandings.
(d) [Severability] If any provision of this Agreement shall be
declared void or unenforceable by any judicial or administrative authority, the
validity of any other provision and of the entire Agreement shall not be
affected thereby.
(e) [Waiver of Provisions] The failure of either party to insist
upon a strict performance of any of the terms or provisions of this Agreement or
to exercise any option, right, or remedy herein contained, shall not be
construed as a waiver or as a relinquishment for the future of such term,
provision, option, right, or remedy, but the same shall continue and remain
in full force and effect. No waiver by either party of any term or provision
hereof shall be deemed to have been made unless expressed in writing and signed
by such party.
(f) [Fees and Expenses] Each of the parties hereto shall bear its
own attorneys fees, consultants fees and other costs, fees, and expenses
incurred in connection with the negotiation, preparation and consummation of
this Agreement and the transactions contemplated hereby.
14
(g) [Amendments] This Agreement may not be amended, changed or
modified except by a written document signed by each of the parties hereto.
(h) [Successors and Assigns] All provisions of this Agreement shall
be binding upon, inure to the benefit of, and be enforceable by and against the
parties hereto, and their respective heirs, personal representatives, successors
and permitted assigns.
(i) [Governing Law] This Agreement shall be governed by, construed
under, and interpreted in accordance with the laws of the State of Nevada, and
enforced (except as otherwise provided herein) only in its state and federal
courts.
(j) [Headings] Section and Subsection headings in this Agreement are
included for convenience of reference only and are not intended to define, limit
or describe the scope or intent of any provision of this Agreement.
(k) [Counterparts] This Agreement may be executed in two
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.
(l) [Survival] The representations, warranties, and covenants
contained in this Agreement shall survive its termination for any reason.
IN WITNESS WHEREOF, the parties have executed and delivered this
Agreement as a contract under seal.
LAS VEGAS SANDS, INC.
By /s/ Xxxxxxx X. Xxxxxxx
----------------------------
Xxxxxxx X. Xxxxxxx
Chairman of the Board
/s/ Xxxxxx X. Xxxxxxxxx
----------------------------
XXXXXX X. XXXXXXXXX
15
TERMINOLOGY USED IN THIS AGREEMENT
TERM DEFINED AT
---- ----------
Accelerated Exercise Period ss.7(d)
Xxxxxxx xx.7
Applicable Federal Rate ss.11(e)
Agreement Recitals
Board ss.1
Cause ss.11(b)
Cause Termination ss.11(a)(iii)
Constructive Termination ss.11(c)
Death Termination ss.11(a)(i)
Development Project Recitals
Disability Termination ss.11(a)(ii)
Effective Date ss.4
Exercise Price ss.7(c)
Fair Market Value ss.11(e)
Final Vesting Date ss.7(b)
Fully Diluted Number ss.7(a)
Grand Opening Date ss.7(b)
Grantor ss.7
GWV ss.6(f)(ii)
Index ss.6(a)
Initial Term ss.4
Investment Banking Value ss.7(c)
Involuntary Termination ss.11(a)(vii)
Lender Restrictions ss.11(f)
License ss.5
Licensing Termination ss.11(a)(ix)
LVSI Recitals
LVSI Breach Termination ss.11(a)(v)
Mortgage Deficit ss.6(f)(viii)
Nevada Gaming Authorities ss.5
Non-Renewal Termination ss.11(a)(x)
Options ss.7(a)
Option Expiration Date ss.7(d)
Post-Contract Termination ss.11(a)(x)
Redemption Note ss.11(f)
Redemption Price ss.11(f)
Relocation Expenses ss.6(f)
Renewal Term ss.4
Restrictive Covenant Expiration Date ss.9
Retail Portion ss.7(e)
Sands Property First Whereas, paragraph
Shares ss.7
Subsequent Vesting Dates ss.7(b)
Termination Event ss.11(a)
Voluntary Termination ss.11(a)(viii)
Xxxxxxxxx Recitals
Xxxxxxxxx Breach Termination ss.11(a)(iv)
