OF DEVELOPMENT COSTS - LOAN
7.1
REPAYMENT OF LOAN.
CERTAIN EXPENDITURES HAVE BEEN, AND/OR WILL
BE, MADE, SECURED OR ARRANGED BY MANAGER, TOWARD THE DEVELOPMENT, INCLUDING
CONSTRUCTION AND REMODELING OF THIS GAMING FACILITY.
SUCH EXPENDITURES INCLUDE
BUT ARE NOT LIMITED TO THE PURCHASE OF EQUIPMENT, MACHINERY, FURNITURE AND
FIXTURES, AS WELL AS ATTORNEY FEES AND RELATED TRANSACTIONAL EXPENSES.
ALL SUCH
EXPENSES WILL BE EVIDENCED BY A NOTE OR NOTES OR A LOAN AGREEMENT OR LOAN
AGREEMENTS TO BE NEGOTIATED IN GOOD FAITH.
ALL INTEREST CHARGED ON ANY SUCH
LOANS SHALL BE EQUAL TO MANAGER'S INTEREST COST AND SHALL OTHERWISE BE
COMPETITIVE AND COMMERCIALLY REASONABLE RATES, AFTER TAKING INTO CONSIDERATION
THE NATURE AND TERM OF THE LOAN AND THE SECURITY AVAILABLE .FOR REPAYMENT
THEREOF.
THE INITIAL LOAN, IN THE APPROXIMATE AMOUNT OF FIVE MILLION EIGHT
HUNDRED THOUSAND AND NO/100) DOLLARS ($5,800,000.00), SHALL BEAR INTEREST AT THE
RATE OF 9.25% PER ANNUM AND SHALL BE AMORTIZED OVER SEVEN (7) YEARS.
SUCH LOANS
ARE HEREBY SECURED BY THE BUSINESS CORPORATION'S PLEDGE OF REMOVABLE EQUIPMENT,
FURNITURE AND TRADE FIXTURES PURCHASED WITH FUNDS LOANED TO THE BUSINESS
CORPORATION, AND BY THE FUTURE GAMING REVENUES FROM THE GAMING OPERATION OR THE
GAMING FACILITY.
THE FURNITURE, TRADE FIXTURES AND EQUIPMENT AND GAMING
REVENUES SHALL BE THE SOLE SOURCE OF REPAYMENT AND COLLATERAL AND NEITHER THE
TRIBE NOR THE BUSINESS CORPORATION SHALL HAVE ANY OTHER RESPONSIBILITY FOR
RETIREMENT OF THE DEBT.
THE REAL PROPERTY, INCLUDING THE BUILDING AND ALL
PERMANENT EQUIPMENT AND FIXTURES WHICH BECOME REALTY UNDER OKLAHOMA LAW, SHALL
NOT BE COLLATERAL FOR THE LOAN.
DURING THE TERM OF THIS AGREEMENT AS LONG AS
MANAGER IS MANAGING THE GAMING.
ENTERPRISE, IN THE EVENT THAT CASH FLOW FROM
OPERATIONS IS INADEQUATE TO PAY PRINCIPAL OR INTEREST ON THE LOAN, ANY SHORTAGE
SHALL BE SUSPENDED UNTIL CASH FLOW IS ADEQUATE TO CURE SUCH DELINQUENCY AND ANY
SUCH SUSPENSION SHALL NOT CAUSE AN DEFAULT IN THE LOAN DOCUMENTS.
28
7.2
LIMITATIONS ON LOAN.
TRIBE AND MANAGER AGREE THAT MANAGER'S
INITIAL DEVELOPMENT COSTS FOR THE PROJECT SHALL NOT EXCEED FIVE MILLION EIGHT
HUNDRED THOUSAND AND NO/100 DOLLARS ($5,800,000.00) IN COSTS, CREDIT OR OTHER
FORMS OF FINANCIAL CONTRIBUTION BY PURCHASE OF GAMING EQUIPMENT AND OTHER
NECESSARY EQUIPMENT, MACHINERY AND FURNISHINGS, INCLUDING OVERHEAD, FINANCING
COSTS AND FOR FUNDING OF THE HOUSE BANK AND INITIAL PAYROLL AND PRE-OPENING
COSTS, AND THAT THE LOAN FROM MANAGER TO THE BUSINESS CORPORATION SHALL NOT
EXCEED FIVE MILLION EIGHT HUNDRED THOUSAND AND NO/100 DOLLARS ($5,800,000.00).
7.3
THIS SECTION INTENTIONALLY LEFT BLANK.
7.4
FINAL DISTRIBUTION.
UPON TERMINATION OR EXPIRATION OF THIS
AGREEMENT, MANAGER SHALL BE ENTITLED TO RECEIVE FROM THE TRIBE, CASH EQUAL TO
THIRTY PERCENT (30%) OF THE GAMING OPERATION UNDISTRIBUTED NET REVENUES AND
NON-GAMING NET REVENUES.
ARTICLE VIII
NOTICE
8.1
NOTICES.
ANY NOTICE REQUIRED TO BE GIVEN PURSUANT TO THIS
AGREEMENT SHALL BE DELIVERED BY CERTIFIED MAIL ADDRESSED TO TRIBE AT:
CHEYENNE AND ARAPAHO TRIBES OF Oklahoma
P.O. Box 38
Concho, Oklahoma
73022
and to the Manager at:
Southwest Casino and Hotel Corp.
c/o James B.