CERTAIN TRANSACTIONS
Time Sharing Agreements
The Company and its subsidiaries use
aircraft owned by companies controlled by the Adelson family for business purposes, including flying patrons to our properties. The Company believes its use of these aircraft provides the Company with a significant competitive advantage in
attracting patrons to the Companys properties and similar aircraft with comparable amenities are not generally available for charter. The Company believes the amounts paid to companies controlled by the Adelson family for the use of the
aircraft are less than the Company would be required to pay to a third party provider, if comparable aircraft were available, and also believes the amounts paid pursuant to the agreements relating to the use of the aircraft described below do not
provide for profits or a return on investment to the companies controlled by the Adelson family.
The Company has entered into several aircraft time
sharing agreements and aircraft cost sharing agreements with Interface Operations. Under the agreements, the party using an aircraft pays fees of up to (i) twice the cost of the fuel, oil and other additives used, (ii) all fees, including
fees for landing, parking, hangar, tie-down, handling, customs, use of airways and permission for overflight, (iii) all expenses for catering and in-flight
entertainment materials, (iv) all expenses for flight planning and weather contract services, (v) all travel expenses for pilots, flight attendants and other flight support personnel, including food, lodging and ground transportation and
(vi) all communications charges, including in-flight telephone. Under the agreements, the Company charged Interface Operations approximately $2.7 million in respect of Interface Operations 2021
use of the Companys aircraft, and Interface Operations charged the Company approximately $2.4 million in respect of the Companys 2021 use of Interface Operations aircraft.
In addition, the Company has entered into an aircraft cost allocation agreement with Interface Operations Bermuda Ltd. (Interface Bermuda), a
wholly owned subsidiary of Interface Operations, providing the Company access to a Boeing 747 aircraft and an Airbus A-340 aircraft. Under the agreement, the Company has agreed to pay Interface Bermuda fees of
up to (i) a pro-rata share of all fixed costs, such as hangar, insurance, pilot salaries and training, maintenance, subscription services, support personnel and other similar items (exclusive of tax depreciation), (ii) actual costs of fuel, oil
and other additives used, (iii) all fees, including fees for landing, parking, hangar, tie-down, handling, customs, use of airways and permission for overflight, (iv) all expenses for catering and in-flight entertainment materials, (v) all expenses for flight planning and weather contract services, (vi) all travel expenses for pilots, flight attendants and other flight support personnel, including
food, lodging and ground transportation and (vii) all communications charges, including in-flight telephone. In 2021, no charges were incurred by the Company for the Boeing 747. Interface Bermuda charged
the Company approximately $48,000 in respect of the Companys 2021 use of Interface Bermudas Airbus 340 aircraft.
Aircraft Maintenance Master
Services Agreement
Sands Aviation and Citadel Completions LLC (Citadel), an entity owned by a trust for the benefit of certain
members of the Adelson family, have entered into an aircraft maintenance master services agreement under which Citadel may perform aircraft refurbishment and maintenance services on aircraft managed by Sands Aviation. During 2021, Citadel charged
Sands Aviation approximately $0.8 million for services provided by Citadel under this agreement.
OTHER TRANSACTIONS
We have employed Dr. Adelson since February 2021 as Co-Founder and Special Advisor to the Company, and from August
1990 to February 2021 as the Director of Community Involvement. In conjunction with our Government Relations Department, Dr. Adelson oversees and facilitates our partnerships with key community groups and other charitable organizations. We paid
her approximately $0.1 million during 2021.
The Adelson family made payments of $0.5 million to the Company during 2021 for lodging,
banquet, transportation, food and beverage services and personal protection equipment.
Mr. Goldstein made payments of $45,256 to the Company
during 2021 for lodging, transportation and food and beverage services.
Mr. Dumont and his family made payments of $32,055 to the Company during
2021 for lodging, transportation and food and beverage services.
During 2021, the Company made payments of $3.1 million for food and beverage
services, newspaper subscriptions, and security support from entities in which the Adelson family have an ownership interest.
The Company provided
security services to Dr. Adelson and her family amounting to $3.1 million during 2021. These security measures were provided for the benefit of the Company and based on the advice of an independent security consultant.
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LAS VEGAS SANDS 2022 Proxy Statement
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