Casino Lease

CASINO LEASE


By and Between


VENETIAN CASINO RESORT, LLC


and


LAS VEGAS SANDS, INC.


TABLE OF CONTENTS


PAGE NO.


SECTION 1 BASIC LEASE PROVISIONS...........................................1


SECTION 2 DEFINITIONS......................................................3
2.1 Definitions......................................................3
2.2 Interpretation...................................................8


SECTION 3 DEMISED PREMISES.................................................8
3.1 Premises...........................................................8
3.2 Landlord Reservation...............................................9
3.3 Tenant Control.....................................................9


SECTION 4 TERM; COMMENCEMENT DATE..........................................9
4.1 Commencement.......................................................9
4.2 Term...............................................................9
4.3 Extension..........................................................9


SECTION 5 RENT............................................................10
5.1 Minimum Rent......................................................10
5.2 Place of Payment..................................................10
5.3 Default and Late Charge...........................................10


SECTION 6 GAMING..........................................................11
6.1 Regulation.......................................................11
6.2 Taxation.........................................................11


SECTION 7 POSSESSION AND SURRENDER OF LEASED PROPERTY.....................12
7.1 Acceptance.......................................................12
7.2 Surrender and Fixtures............................................12
7.3 Holding Over......................................................13


SECTION 8 COMMON AREA COST................................................13


SECTION 9 USE OF LEASED PROPERTY/CONDUCT OF BUSINESS......................13
9.1 First Class Resort................................................13
9.2 Permitted Use.....................................................14
9.3 Tenant's Employees................................................14
9.4 Compliance With Law...............................................15
9.5 Furnishings and Fixtures.........................................15
9.6 Hours of Operation...............................................15
9.7 Tenant Maintenance................................................15
9.8...................................................................15
9.9 Tenant Conduct...................................................16


SECTION 10 IMPROVEMENTS AND ALTERATIONS....................................16
10.1 Landlord's Work..................................................16
10.2 Tenant's Work Commencement.......................................16
10.3 Required Completion..............................................16


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10.4 Failure to Open..................................................17
10.5 Acceptance of Work...............................................17
10.6 Other Alterations................................................18
10.7 Liens............................................................19


SECTION 11 LANDLORD'S REPAIRS..............................................19


SECTION 12 PARKING AND COMMON AREAS ACCESS.................................20
12.1 Parking..........................................................20


SECTION 13 INTELLECTUAL PROPERTY & ADVERTISEMENTS..........................21


SECTION 14 TAXES...........................................................21
14.1 Personal Property................................................21
14.2 Real Property....................................................21
14.3 Other Taxes......................................................21
14.4 Casino Entertainment Tax.........................................22


SECTION 15 UTILITIES/LEASED PROPERTY MAINTENANCE SERVICES..................22
15.1 Utilities.......................................................22
15.2 Landlord Services...............................................23


SECTION 16 INSURANCE.......................................................23
16.1 Tenant's Insurance...............................................23
16.2 Tenant's Property Insurance......................................24
16.3 Business Interruption............................................24
16.4 Worker's Compensation............................................24
16.5 Policy Requirements..............................................25
16.6 Hazardous Activities.............................................25
16.7 Waiver of Subrogation............................................26
16.8 Coverage.........................................................26


SECTION 17 LIENS...........................................................27


SECTION 18 INDEMNIFICATION.................................................27
18.1 Tenant Indemnification...........................................27
18.2 Hazardous Material...............................................28
18.3 Limitations on Liability.........................................28


SECTION 19 SUBORDINATION...................................................29
19.1 Subordination of Tenant's Interests..............................29
19.2 Priority.........................................................29
19.3 Attornment.......................................................29


SECTION 20 ASSIGNMENT AND SUBLETTING.......................................30
20.1 Prohibition......................................................30
20.2 No Release of Tenant.............................................30
20.3 Assumption of Lease..............................................31
20.4 No Merger........................................................31


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SECTION 21 INSOLVENCY AND DEATH............................................32
21.1 No Transfer......................................................32
21.2 Bankruptcy.......................................................32


SECTION 22 CONDEMNATION....................................................33
22.1 Award............................................................33
22.2 Taking...........................................................33
22.3 Deed-in-Lieu.....................................................34


SECTION 23 DESTRUCTION OF PREMISES.........................................34
23.1 Termination by Landlord..........................................34
23.2 Damage by Tenant.................................................35
23.3 Damage to Resort.................................................35
23.4 Repair Obligations...............................................35
23.5 Insurance Proceeds...............................................35


SECTION 24 RECORDS AND BOOKS OF ACCOUNT....................................36


SECTION 25 RIGHT OF ACCESS.................................................36
25.1 Right of Access..................................................36
25.2 Inconvenience to Tenant..........................................37


SECTION 26 EXPENDITURES BY LANDLORD........................................37


SECTION 27 ESTOPPEL CERTIFICATES...........................................37


SECTION 28 DELIVERY OF DOCUMENTS...........................................38


SECTION 29 REPRESENTATIONS AND WARRANTIES..................................38


SECTION 30 DEFAULT.........................................................39
30.1 Events of Default................................................39
30.2 Remedies.........................................................40
30.3 Removal of Tenant................................................42
30.4 Attorney's Fees..................................................43
30.5 Waiver...........................................................43


SECTION 31 QUIET POSSESSION................................................44


SECTION 32 SALE BY LANDLORD................................................45
32.1 Landlord's Transfer..............................................45
32.2 Attornment.......................................................45
32.3 Release of Landlord..............................................45


SECTION 33 DEFAULT BY LANDLORD.............................................45


SECTION 34 FORCE MAJEURE...................................................46


SECTION 35 NO PARTNERSHIP..................................................46


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SECTION 36 SERVICE OF NOTICES..............................................47
36.1 Method...........................................................47
36.2 Addresses........................................................47
36.3 Change of Address................................................47


SECTION 37 REMEDIES CUMULATIVE.............................................48


SECTION 38 SUCCESSORS AND ASSIGNS..........................................48


SECTION 39 PARTIAL INVALIDITY..............................................48


SECTION 40 TIME OF THE ESSENCE.............................................48


SECTION 41 ENTIRE AGREEMENT................................................48


SECTION 42 BROKERS.........................................................49


SECTION 43 NO MEMORANDUM...................................................49


SECTION 44 MISCELLANEOUS...................................................49
44.1 Captions.........................................................49
44.2 Interpretation...................................................49
44.3 Governing Law....................................................49
44.4 Covenant.........................................................49
44.5 Joint Liability..................................................50
44.6 Submission.......................................................50
44.7 Notice of Liens..................................................50
44.8 Drafting.........................................................50
44.9 Effectiveness....................................................50
44.10 Consents........................................................50
44.11 Other Tenants...................................................50


SECTION 45 DISPUTE RESOLUTION..............................................51


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EXHIBIT INDEX


EXHIBIT NO. DESCRIPTION


Exhibit A Designation of Leased Property/Site Plan


Exhibit B Description of Resort, Legal and Site Plan


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LEASE


This Lease (the "Lease") is made and entered into as of November 14, 1997, by and between VENETIAN CASINO RESORT, LLC (hereinafter referred to as "Landlord"), and LAS VEGAS SANDS, INC. (hereinafter referred to as "Tenant").


For good and valuable consideration which the Parties hereby acknowledge, the Parties agree as follows:


SECTION 1


BASIC LEASE PROVISIONS


1.1 Date of Lease: As of November 14, 1997.
1.2 Landlord: Venetian Casino Resort, LLC.
1.3 Notice Address of LandloVenetian Casino Resort, LLC


3355 Las Vegas Boulevard South


Room 1C
Las Vegas, Nevada 89109
Attn: General Counsel


1.4 Tenant: Las Vegas Sands, Inc.
1.5 Notice Address of TenantGrand Canal Shops


Mall Construction, LLC


3355 Las Vegas Boulevard South


Room 1G
Las Vegas, Nevada 89109
Attn: General Counsel


1.6 Leased Property: Premises indicated by cross-hatching on the site plan attached hereto as Exhibit A, and casino area and ancillary areas of the Resort as more particularly described in Section 2.1 below.


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1.7 Term: Initial Term: Fifteen (15) Lease Years.
Renewal Term: Four (4) options of Five (5) Lease Years each.


1.8 Landlord's Right to Terminate: In the event Landlord obtains a gaming license from the Nevada Gaming Commission and the Clark County Liquor and Gaming License Board allowing it to operate gaming activities within the Resort, then Landlord may terminate this Lease by giving thirty (30) days prior notice to Tenant.


1.9 Option to Purchase Gaming Assets: In the event Landlord exercises its termination rights pursuant to 1.8 above, the Landlord shall have the right to purchase from Tenant all of its gaming assets consisting of all rights, properties and businesses which directly or indirectly comprise, are used in, or relate to Tenants casino business (collectively the "Gaming Assets"), including without limitation, the furniture, fixtures, gaming devices, and all warranties applicable thereto, equipment, inventory, appliances, tools, trade name, goodwill, telephone number, credit files, computer records, financial statements, gaming tax returns, customer lists, all related accounting files, all computer hardware, software, all cash, including cash in the cages and slot machines, bank rolls, cash equivalents, deposits, refund claims, deferred charges, and all other personal property, tangible or intangible, owned by Tenant and used directly or indirectly in ownership, operation and maintenance of the Business at any mutually agreed upon price by Landlord and Tenant.


1.10 Utilities: Landlord shall be responsible for payment for all utilities and shall pay all utility connection charges.


1.11 Common Area Cost Charges: Tenant shall not be charged any Common Area Cost Charges.


1.12 Exhibits: The following Exhibits are attached hereto and incorporated herein by reference:


Exhibit A, Designation of Leased Property/Site Plan;
Exhibit B, Description of Resort, Legal and Site Plan;


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In the event of a conflict between the provisions of this Section 1 and the specific provisions as set forth in the body of the Lease, the specific provisions as set forth in the body of the Lease shall prevail.


SECTION 2
DEFINITIONS


2.1 Definitions. The following terms shall have the following meanings for purposes of this Lease:


"Affiliates" shall mean, in relation to any Person, any other Person controlled, directly or indirectly, by such Person, any other Person that controls, directly or indirectly, such Person or any Person directly or indirectly under common control with such Person.


"Business" shall mean the operation of a casino pursuant to the Nevada Gaming Control Act, NRS ss. 463.010 et seq. as amended ("Gaming Laws") including without limitation, all accounting and cashier operations, all surveillance operations and any and all services necessary to comply with Gaming Laws.


"Business Day" shall mean a day on which commercial banks are generally open for business in Las Vegas, Nevada.


"Certified", "Certification" or "Certificate" shall mean that the relevant document or material which is the subject of certification is attested to by an officer or official of the Person charged with certification in a signed written statement that such document is true, accurate and complete.


"Common Areas" shall mean all square footage, both indoors and outdoors, in the Resort related to retail and restaurant operations which is not the subject of any lease to a particular tenant nor a vacant space intended to be leased by Landlord, and shall include, without limitation, an allocable portion of all parking grounds and facilities, an allocable portion of all delivery and loading dock areas.


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"Common Area Cost" shall mean the total cost and expense incurred in managing, operating, equipping, lighting, repairing (including, without limitation, Landlord's Repairs), replacing and maintaining the Common Areas.


"Commencement Date" shall mean the date as established by Landlord pursuant to Section 4.


"Default Interest Rate" shall mean the "prime rate of interest" announced from time to time by Bank of America N.T. & S.A. plus six percent (6%) per annum.


"Deposit" shall mean None Dollars ($ None ).


"Encumbrance" shall mean any security interest, lien, pledge, charge, hypothecation or any other encumbrance of whatever nature.


"Environmental Laws" shall be all those laws, statutes, regulations, ordinances and rules as set forth in or referred to in the definition of Hazardous Substances herein.


"Event of Default" shall mean those events as described in Section 32 as well as those other items designated as Events of Default throughout this Lease.


"Fixtures" shall mean tangible items affixed to the Leased Property in such a manner that the removal of same from the Leased Property would cause, leave or in any manner achieve a material injury to the Leased Property, and without limiting the foregoing, lighting fixtures, bulbs and tubes and all partitions, whether removable or not, shall be deemed to be included within this definition of Fixtures and part of the Leased Property.


"Gaming Authorities" shall mean the Nevada Gaming Commission, and any other agency or subdivision of the State of Nevada, or any other government agency regulating gaming.


"Hazardous Substance" shall mean those substances, chemicals and mixtures as may be defined as "hazardous substances," "hazardous materials", "toxic substances," "imminently hazardous chemical substance or mixture," "pesticide," "heavy metal," "hazardous air pollutant," "toxic pollutant," "toxic waste," "pollutant," "regulated substance," "asbestos,"


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"asbestos containing material," "solid waste" "hazardous waste," "medical waste," or "radioactive waste" in the Toxic Substances Control Act, 15 U.S.C. Sec. 2601 et seq., as now or hereafter amended, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Sec. 9601 et seq. as now or hereafter amended, the Resource Conservation and Recovery Act of 1976, 42 U.S.C. Sec. 5901 et seq., as now or hereafter amended, the Federal Hazardous Substances Act, 15 U.S.C. Sec. 1261 et seq., as now or hereafter amended, the Federal Water Pollution Control Act, 33 U.S.C. Sec. 1251 et seq., as now or hereafter amended, the Clean Air Act, 42 U.S.C. Sec. 7401, et seq., as now or hereafter amended, the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. Sec. 136 et seq., as now or hereafter amended, the Emergency Planning and Community Right to Know Act of 1986, 42 U.S.C. Sec. 11001 et seq. as now or hereafter amended, the Occupational Safety and Health Act of 1970, 29 U.S.C. Sec. 651 et seq., as now or hereafter amended ("OSHA"), the Hazardous Materials Transportation Act, 49 U.S.C. Sec. 1801 et seq., as now or hereafter amended, the statutes of the State of Nevada found currently at ch. 444, 445, 459, 477, 590, 618 or in the Uniform Fire Code, 1991 edition and the rules, orders and regulations now in effect or promulgated and effective hereafter pursuant to each respective law listed above as well as such other substances, materials and wastes which are regulated under applicable local, state or federal law, or which are classified as hazardous or toxic under federal, state or local laws or regulations.


"Knowledge" shall mean with respect to any Person, the actual knowledge of such Person's directors, officers, executives, and other employees or agents granted decision-making authority for such Person sufficient to bind contractually such Person to third Persons.


"Landlord" shall have the meaning as set forth in the first paragraph hereof.


"Landlord Parties" shall mean Landlord, Landlord's Affiliates, directors, officers, mployees, agents, representatives, successors and assigns.


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"Landlord's Repairs" shall mean all those repairs necessary to keep in good order, condition and repair all portions of the Leased Property except for reasonable wear and tear and except for any damage thereto caused by any act or negligence of Tenant, Tenant Parties or Tenant's customers or invitees.


"Landlord's Work" shall mean all such work required in, to and about the Resort in order for the Leased Property to be in condition for Tenant to commence installation of Tenant's leasehold improvements, trade fixtures, equipment, gaming equipment and personal property.


"Laws" shall mean the Environmental Laws, OSHA as it applies generally to the workplace, as well as all federal, state and local laws, rules, regulations, and ordinances regarding equal employment opportunity, sexual harassment, business licensing, food and liquor services, restaurant services and all other laws relating primarily to the Business.


"Lease" shall have the meaning as set forth in the first paragraph hereof.


"Lease Term" shall mean the period beginning on the Commencement Date and ending on the Termination Date.


"Leased Property" shall mean the casino and gaming areas of the Resort, including, without limitation, the areas of the Resort containing and immediately adjacent the slot machines, video machines, all gaming devices, table games, poker room, keno area, baccarat areas, and any other areas which are subject to direct supervision by the Gaming Authorities, together with all surveillance areas, counting rooms, cashier cages and other areas ancillary to casino gaming, all of which will be more particularly designated upon completion of the Resort and which will be attached at such time as Exhibit A hereto.


"Lease Year" shall mean each calendar year during the Lease Term, together with the partial year which begins on the Commencement Date and ends on the succeeding December 31 and the partial year, if any, which ends on the Termination Date.


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"Losses" shall mean all claims, injuries, charges, damages, costs, fees (including, without limitation, reasonable attorneys', accountants', investigators', experts' and other professional fees), liabilities, fines, penalties, assessments, expenses and other losses.


"Parties" shall mean Tenant and Landlord.


"Person" shall mean any natural person, corporation, limited liability company, partnership, limited partnership, limited liability partnership, association, organization or any other entity of whatsoever nature.


"Real Estate Impositions" shall mean:


(a) Any real estate taxes, fees, assessments or other charges
assessed against the Leased Property and the Common Areas or
any improvements thereon as allocated by Landlord.


(b) All personal property taxes on personal property used in
connection with the Common Areas and related structures other
than taxes payable by Tenant under Section 16.1 hereof and
taxes of the same kind as those described in said Section 16.1
payable by other tenants in the Resort pursuant to
corresponding provisions of their leases.


(c) Any and all taxes, assessments, license fees, and public
charges levied, assessed, or imposed and which become payable
during the Term upon all leasehold improvements in the Leased
Property.


(d) Any and all environmental levies or charges now in force
affecting the Common Areas and the Leased Property, or any
portion thereof, or which may hereafter become effective,
including, but not limited to, parking taxes, levies, or
charges, employer parking regulations, and any other parking
or vehicular regulations, levies, or charges imposed by any
municipal, state or federal agency or authority.


(e) Any other taxes levied or assessed in addition to or in lieu
of such real or personal property taxes.


"Resort" shall mean that hotel, casino, retail, restaurant and parking complex as further described in Exhibit B.


"Tenant" shall have the meaning as set forth in the first paragraph hereof.


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"Tenant Parties" shall mean Tenant, Tenant's concessionaires licensees, sublessees or assignees, (whether or not authorized pursuant to the provisions of this Lease), Affiliates, directors, officers, employees, agents, representatives and any other Person permitted by Tenant to conduct business or other activities from, on or about the Leased Property.


"Term" shall mean the period of time beginning on the date first written above and ending on the Termination Date.


"Termination Date" shall mean the date fifteen (15) years after the Commencement Date, or such earlier date this Lease terminates due to the occurrence of an Event of Default or other termination effected by the Landlord pursuant to the terms of this Lease, unless extended pursuant to extension rights, if any, set forth in Section 4.


"Trade Fixtures" are those items present in or on the Leased Property which were installed or placed by Tenant Parties and which are readily movable from the Leased Property without material injury to the Leased Property.


2.2 Interpretation. Other terms defined parenthetically herein shall have the meanings ascribed to those terms by the text immediately preceding such terms. References to a "Section" are references to the numbered provisions of this Lease. References to an "Exhibit" are references to exhibits which are attached hereto and are incorporated by reference into the provisions of this Lease.


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