HAVE ANY SUBSIDIARIES.
ARTICLE V
GENERAL COVENANTS OF BORROWER AND MCRI
To induce the Banks to enter into this Credit Agreement, Borrower and MCRI
covenant to Banks as follows:
A.
General Covenants.
SECTION 5.01.
FF&E.
BORROWER SHALL FURNISH,
FIXTURE AND EQUIP THE HOTEL/CASINO FACILITY WITH FF&E IT REASONABLY DEEMS
APPROPRIATE FOR THE OPERATION OF THE HOTEL/CASINO FACILITY.
ALL FF&E THAT IS
PURCHASED AND INSTALLED IN THE HOTEL/CASINO FACILITY SHALL BE PURCHASED FREE AND
CLEAR OF ANY LIENS, ENCUMBRANCES OR CLAIMS, OTHER THAN PERMITTED ENCUMBRANCES.
SECTION 5.02.
PERMITS; LICENSES AND LEGAL
REQUIREMENTS.
BORROWER 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 REAL PROPERTY AS THE HOTEL/CASINO
FACILITY.
BORROWER SHALL COMPLY IN ALL MATERIAL RESPECTS WITH ALL APPLICABLE
MATERIAL EXISTING AND FUTURE LAWS, RULES, REGULATIONS, ORDERS,
73
ORDINANCES AND REQUIREMENTS OF ALL GOVERNMENTAL AUTHORITIES, AND WITH ALL
RECORDED RESTRICTIONS AFFECTING THE REAL PROPERTY.
SECTION 5.03.
PROTECTION AGAINST LIEN CLAIMS.
BORROWER 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 FACILITY IN ACCORDANCE WITH THIS
SECTION 5.03.
IF ANY MECHANIC'S LIEN OR MATERIALMAN'S LIEN SHALL BE RECORDED,
FILED OR SUFFERED TO EXIST AGAINST THE REAL PROPERTY, HOTEL/CASINO FACILITY 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 FACILITY, UPON BORROWER'S RECEIPT OF WRITTEN NOTICE FROM AGENT BANK
DEMANDING THE RELEASE AND DISCHARGE OF SUCH LIEN: (A) SAID LIEN OR CLAIM SHALL
BE PAID, RELEASED AND DISCHARGED OF RECORD WITHIN SIXTY (60) DAYS FOLLOWING ITS
RECEIPT OF SUCH NOTICE, OR (B) BORROWER SHALL CAUSE SAID MECHANIC'S LIEN OR
MATERIALMAN'S LIEN TO BE RELEASED OF RECORD PURSUANT TO THE PROVISIONS SET FORTH
IN THE NEVADA REVISED STATUES 108.2413, ET. SEQ., WITHIN NINETY (90) DAYS
FOLLOWING ITS RECEIPT OF SUCH NOTICE.
SECTION 5.04.
CONTINUANCE OF OUTSTANDING BALANCE OF
EXISTING BANK LOAN.
ON THE RESTATEMENT EFFECTIVE DATE, EACH LENDER SHALL FUND
ITS PRO RATA SHARE OF THE OUTSTANDING PRINCIPAL AND INTEREST OWING UNDER THE
EXISTING BANK LOAN FOR PAYMENT TO THE EXISTING LENDERS FOR THE PURPOSE OF
CONTINUING THE UNPAID PRINCIPAL UNDER THE EXISTING BANK LOAN AS FUNDED
OUTSTANDINGS UNDER THE CREDIT FACILITY.
SECTION 5.05.
NO CHANGE IN CHARACTER OF
BUSINESS OR LOCATION OF CHIEF EXECUTIVE OFFICE.
AT ALL TIMES THROUGHOUT THE
TERM OF THE CREDIT FACILITY (A) THE CHIEF EXECUTIVE OFFICE OF BORROWER AND MCRI
SHALL BE LOCATED AT 3800 SOUTH VIRGINIA STREET, RENO, NEVADA 89502; PROVIDED,
HOWEVER, BORROWER SHALL BE ENTITLED TO MOVE ITS CHIEF EXECUTIVE OFFICE TO
ANOTHER LOCATION WITHIN THE STATE OF NEVADA UPON NO LESS THAN THIRTY (30) DAYS
PRIOR WRITTEN NOTICE TO AGENT BANK, (B) THE HOTEL/CASINO FACILITY SHALL BE
OPERATED BY THE BORROWER, AND (C)