(A) ARE TRUE, CORRECT AND COMPLETE
COPIES OF THE ORIGINALS THEREOF, AS IN EFFECT ON THE DATE HEREOF, AND NO
AMENDMENTS OR MODIFICATIONS TO ANY OF THEM WHICH ARE NOT INCLUDED IN SUCH COPIES
HAVE BEEN MADE; AND (B) HAVE NOT BEEN TERMINATED AND ARE ALL IN FULL FORCE AND
EFFECT.
SGFI IS NOT IN DEFAULT IN THE OBSERVANCE OR PERFORMANCE OF ITS
OBLIGATIONS UNDER EITHER OF THE SGFI LEASES AND SGFI HAS DONE ALL THINGS
REQUIRED TO BE DONE AS OF THE RESTATEMENT DATE TO KEEP UNIMPAIRED ITS RIGHTS
UNDER THE SGFI LEASES.
EACH OF THE SGFI LEASES ARE PARTICULARLY DESCRIBED BY
SCHEDULE 4.30 ATTACHED HERETO AND INCORPORATED BY REFERENCE HEREIN.
105
ARTICLE V
GENERAL COVENANTS OF BORROWERS
To induce the Banks to enter into this Credit Agreement, Borrowers covenant to
Banks as follows:
SECTION 5.01.
FF&E.
THE BORROWER CONSOLIDATION
SHALL FURNISH, FIXTURE AND EQUIP THE HOTEL/CASINO FACILITIES WITH FF&E IT
REASONABLY DEEMS APPROPRIATE FOR THE OPERATION OF THE HOTEL/CASINO FACILITIES.
ALL FF&E THAT IS PURCHASED AND INSTALLED IN THE HOTEL/CASINO FACILITIES SHALL BE
PURCHASED FREE AND CLEAR OF ANY LIENS, ENCUMBRANCES OR CLAIMS, OTHER THAN
PERMITTED ENCUMBRANCES.
SECTION 5.02.
PERMITS; LICENSES AND LEGAL
REQUIREMENTS.
BORROWERS SHALL COMPLY IN ALL MATERIAL RESPECTS WITH AND KEEP IN
FULL FORCE AND EFFECT, AS AND WHEN REQUIRED, ALL GAMING PERMITS AND ALL MATERIAL
PERMITS, LICENSES AND APPROVALS OBTAINED FROM ANY GOVERNMENTAL AUTHORITIES WHICH
ARE REQUIRED FOR THE OPERATION AND USE OF THE MPI HOTEL/CASINO FACILITIES, SGLVI
HOTEL/CASINO FACILITY, SDI FACILITY, SGFI HOTEL/CASINO FACILITY AND PIDI
FACILITY.
BORROWERS SHALL COMPLY IN ALL MATERIAL RESPECTS WITH ALL APPLICABLE
MATERIAL EXISTING AND FUTURE LAWS, RULES, REGULATIONS, ORDERS, ORDINANCES AND
REQUIREMENTS OF ALL GOVERNMENTAL AUTHORITIES, AND WITH ALL RECORDED RESTRICTIONS
AFFECTING THE COLLATERAL PROPERTIES.
SECTION 5.03.
PROTECTION AGAINST LIEN CLAIMS.
BORROWERS SHALL PROMPTLY PAY AND DISCHARGE OR CAUSE TO BE PAID AND DISCHARGED
ALL CLAIMS AND LIENS FOR LABOR DONE AND MATERIALS AND SERVICES SUPPLIED AND
FURNISHED IN CONNECTION WITH THE HOTEL/CASINO FACILITIES IN ACCORDANCE WITH THIS
SECTION 5.03, EXCEPT SUCH CLAIMS AND LIENS, IF ANY, AS ARE BEING CONTESTED IN
GOOD FAITH BY BORROWERS BY APPROPRIATE PROCEEDINGS AND FOR WHICH BORROWERS HAVE
MAINTAINED ADEQUATE RESERVES FOR THE PAYMENT THEREOF IN ACCORDANCE WITH GAAP.
IF ANY MECHANIC'S LIEN OR MATERIALMAN'S LIEN SHALL BE RECORDED, FILED OR
SUFFERED TO EXIST AGAINST THE COLLATERAL PROPERTIES OR ANY OF THEM OR ANY
INTEREST THEREIN BY REASON OF WORK, LABOR, SERVICES OR MATERIALS SUPPLIED,
FURNISHED OR CLAIMED TO HAVE BEEN SUPPLIED AND FURNISHED IN CONNECTION WITH THE
HOTEL/CASINO FACILITIES, UPON BORROWERS RECEIPT OF WRITTEN NOTICE FROM AGENT
BANK DEMANDING THE RELEASE AND DISCHARGE OF SUCH LIEN, SAID LIEN OR CLAIM SHALL
BE PAID, RELEASED AND DISCHARGED OF RECORD WITHIN NINETY (90) DAYS FOLLOWING ITS
RECEIPT OF SUCH NOTICE, OR, IN LIEU OF SUCH PAYMENT BORROWERS MAY (I) WITH
RESPECT TO THE SGLVI HOTEL/CASINO FACILITY CAUSE SAID MECHANIC'S LIEN OR
MATERIALMAN'S LIEN TO BE RELEASED OF RECORD PURSUANT TO THE PROVISIONS SET FORTH
IN THE NEVADA REVISED STATUTES 108.2413, ET.