II GAMING
BY THE ACT (AS DEFINED BELOW); AND
2
(B) ANY OTHER LAWFUL COMMERCIAL ACTIVITY ALLOWED ON THE PROPERTY.
THE TRIBE
SHALL HAVE THE SOLE PROPRIETARY INTEREST IN AND RESPONSIBILITY FOR THE CONDUCT
OF ALL GAMING OPERATIONS (AS DEFINED BELOW) CONDUCTED BY THE ENTERPRISE, SUBJECT
TO THE RIGHTS AND RESPONSIBILITIES OF THE MANAGER UNDER THIS AGREEMENT.
1.5
"GAMING OPERATION" OR "GAMING" MEANS THE ECONOMIC ENTITY THAT IS
LICENSED BY THE TRIBE, OPERATES THE GAMES, RECEIVES THE REVENUES, ISSUES THE
PRIZES, AND PAYS THE EXPENSES.
1.6
"GAMING FACILITY" OR "FACILITY" MEANS THE BUILDING AND GROUNDS,
INCLUDING ANY PARKING AREAS AND DRIVES USED FOR INGRESS AND EGRESS AND
CONNECTING THE "FACILITY" TO THE CITY, COUNTY OR STATE ROADS AND HIGHWAYS.
"FACILITY" INCLUDES ANY AND ALL BUILDINGS AND IMPROVEMENTS LOCATED OR
CONSTRUCTED ON THE PREMISES, AND REFERENCES AUTHORITY AND CONTROL OVER ALL
BUSINESS ACTIVITIES CONDUCTED WITHIN SUCH IMPROVEMENTS OR UPON THE SUBJECT
PREMISES OR IN ANY WAY RELATED OR CONNECTED THERETO.
1.7
"GAMING RELATED OPERATING EXPENSES" SHALL MEAN THOSE EXPENSES,
(EXCLUDING MANAGEMENT FEES), CALCULATED IN ACCORDANCE WITH GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES (GAAP), NECESSARY FOR THE GAMING OPERATION, INCLUDING THE
FOLLOWING: (1) REPAYMENT OF INTEREST THEREON FOR LOANS -PROVIDED OR SECURED BY
OR WITH THE ASSISTANCE OF MANAGER TO THE TRIBE PURSUANT TO THIS AGREEMENT; (2)
THE PAYMENT OF SALARIES, WAGES, BENEFIT PROGRAMS, AND TRAINING FOR EMPLOYEES OF
THE GAMING OPERATION, INCLUDING MANAGER'S REPRESENTATIVE DEFINED IN SECTION 3.2
A HEREOF, AND CONTRACT LABOR OR SERVICES RETAINED ON BEHALF OF THE GAMING
OPERATION; (3) MATERIALS AND SUPPLIES FOR THE GAMING OPERATION; (4) UTILITIES;
(5) THE COST OF FIRE PROTECTION, EMERGENCY MEDICAL SERVICES AND LAW ENFORCEMENT;
(6) INTEREST ON INSTALLMENT CONTRACT PURCHASES OR LEASE-TYPE FINANCING BY THE
GAMING OPERATION; (7) INSURANCE AND BONDING; (8) ADVERTISING AND MARKETING,
INCLUDING BUSING AND TRANSPORTATION OF EMPLOYEES AND/OR CUSTOMERS TO THE
FACILITY AND
3
INCLUDING SUCH PORTION OF ANY LOSS REALIZED FROM NON-GAMING OPERATIONS
DETERMINED BY MANAGER AND TRIBE TO BE A PROPER ALLOCATION TO THE MARKETING
BUDGET; (9) FEES, COSTS, DUES AND CONTRIBUTIONS ASSOCIATED WITH TRIBAL AND
GAMING OPERATION MEMBERSHIP AND PARTICIPATION IN TRADE ASSOCIATIONS, POLITICAL
ACTION ASSOCIATIONS AND RELATED ASSOCIATIONS; (10) SECURITY COSTS AND BACKGROUND
CHECKS OF EMPLOYEES OF THE GAMING OPERATION; (11) REASONABLE TRAVEL EXPENSES FOR
OFFICERS OF THE MANAGER TO INSPECT AND OVERSEE THE GAMING OPERATION, AND FOR THE
CHAIRMAN OF THE TRIBE AND MEMBERS OF THE BUSINESS COMMITTEE AND KEY EMPLOYEES OF
TRIBE WHEN SUCH TRAVEL IS REASONABLY RELATED TO THE GAMING OPERATION, SUBJECT TO
THE BUDGET AGREED UPON BY THE MANAGER AND THE BUSINESS COMMITTEE; (12) TRASH
REMOVAL; (13) COSTS OF GOODS SOLD; (14) OTHER EXPENSES DESIGNATED AS OPERATING
EXPENSES IN THE ANNUAL BUDGET OF THE GAMING OPERATION AS APPROVED BY THE
BUSINESS COMMITTEE AND MANAGER; (15) PROFESSIONAL FEES AND EXPENSES, INCLUDING
LEGAL AND ACCOUNTING FEES INCURRED ON BEHALF OF THE GAMING OPERATION; (16)
NATIONAL INDIAN GAMING COMMISSION FEES; (17) AMORTIZATION OF START UP EXPENSES;
(18) ANY FEDERAL, STATE OR TRIBAL TAXES OR ASSESSMENTS WHICH ARE PROPERLY
ASSESSED AGAINST THE GAMING