Document:

Exhibit 10.15

 

FIRST AMENDMENT
TO MASTER VIDEO LOTTERY TERMINAL CONTRACT, AS

PREVIOUSLY AMENDED

 

This First Amendment
to Master Video Lottery Contract, as previously amended (“First Amendment”) is made and entered into on this 21st
day of December, 2010, by and between the Division of Lotteries of the Rhode Island Department of Revenue, an agency of the State
of Rhode Island (formerly known as the Division of Lotteries of the Rhode Island Department of Administration), with its principal
address at 1425 Pontiac Avenue, Cranston, Rhode Island 02920 (the “Division”), and Newport Grand, LLC, a Rhode Island
Limited Liability Company, with its principal address at 150 Admiral Kalbfus Road, Newport, Rhode Island 02840 (“Newport
Grand”), and amends that certain Master Video Lottery Terminal Contract by and between the Division and Newport Grand dated
as of November 23, 2005 and amended by Amendment dated January 25, 2006 (collectively the “Master Contract”). The Division
and Newport Grand are referred to herein collectively as the “Parties” and individually, as a “Party.”
This First Amendment shall take effect as set forth in Section 2 below.

 

WITNESSETH:

 

WHEREAS, the Division,
as successor-in-interest to the Division of Lotteries of the Rhode Island Department of Administration (the “Former Lottery
Division”) and Newport Grand are parties to the Master Contract;

 

WHEREAS, during the
2010 Session of the Rhode Island Legislature, the State of Rhode Island enacted into law House Bill 2010 - H8157, as amended, entitled
“An Act Relating to Authorizing the First Amendments to the Master Video Lottery Terminal Contracts,” signed by the
Governor of Rhode Island on May 27, 2010 (the “2010 VLT Contracts Act”) (Copy attached hereto as Exhibit A); and

 

WHEREAS, pursuant to
Part B, Section 4(a) and (b) and Section 4(f)(4) in Section 6 and 7 of the 2010 VLT Contracts Act, the Division and Newport Grand
are, as applicable, expressly authorized and empowered to enter into a First Amendment to the Master Contract, which amendments
are set forth in this First Amendment and this First Amendment is, accordingly, the “First Amendment” as that term
is defined in Part B, Section 2(d) of the 2010 VLT Contracts Act.

 

NOW, THEREFORE, in
consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
and in consideration of the mutual promises, covenants, obligations, and conditions herein contained, Newport Grand and the Division
hereby agree as follows,

 

1.           Definitions
and Interpretation

 

1.1           Any
references to the “Agreement” contained in this First Amendment and the Master Contract are, or shall be deemed to
be, references to the Master Contract as amended and extended by this First Amendment.

 

     

     

    

 

1.2           The
Parties hereby acknowledge and agree that the facility known on the date of the Master Contract as Newport Grand Jal Alai, located
at 150 Admiral Kalbfus Road, Newport, Rhode Island, 02840, and defined in the Master Contract as “Newport Grand Jai Alai”
is now known as “Newport Grand.” All references to “Newport Grand Jai Alai” contained in the Master Contract
shall be interpreted to mean “Newport Grand.”

 

1.3           The
Parties further acknowledge and agree that the Division has assumed all of the Former Division of Lotteries’ rights and obligations
under the Master Contract, and all references to the “Division” contained in the Master Contract shall be interpreted
to mean the Division, as that term is defined in the preamble of this First Amendment.

 

1.4           Capitalized
terms not defined in this First Amendment shall have the meanings given them in the Newport Grand Master Contract or in Part B,
Section 2 of the 2010 VLT Contracts Act, as applicable; provided however, if the same term is defined or identified differently
in the Newport Grand Master Contract and in the 2010 VLT Contracts Act, the definition in the 2010 VLT Contacts Act shall govern.

 

2.           Conditions
Precedent to This First Amendment becoming Effective

 

This First Amendment
shall become effective as of November 23, 2010, (the “First Amendment Effective Date”).

 

3.           Extension
of Term

 

3.1           Pursuant
to Part B, Section 4(a)(i) of the 2010 VLT Contracts Act, Newport Grand had the right to and did exercise its option to extend
the term of the Master Contract for the First Extension Term, which First Extension Term commenced on November 23, 2010 and shall
continue through and including November 23, 2015.

 

3.2           Pursuant
to Part B, Section 4(a)(i) of the 2010 VLT Contracts Act, Newport Grand shall have the right and option to further extend the term
of the Master Contract as amended by this First Amendment for the Second Extension Term, which Second Extension Term would commence
in November 23, 2015, and continue through and including November 23, 2020; provided however, except as provided in Part B, Section
4(a)(vii) of the 2010 VLT Contracts Act, the exercise of the option to extend said Newport Grand Master Contract for the Second
Extension Term shall be subject to the terms and conditions of Section 2.3 of the Master Contract; provided further however, as
provided in Part B, Section 4(a)(i) of the 2010 VLT Contracts Act, said Section 2.3B of the Newport Grand Master Contract is hereby
amended such that with respect to Newport Grand’s exercise of the Second Extension Term, Newport Grand shall be required
to certify to the Division that (i) there are 180 full time equivalent employees at the Newport Grand facility on the date
of the exercise of the option for the Second Extension Term; and (ii) for the one-year period preceding the date said Second
Extension Term option is exercised, there had been 180 full-time equivalent employees on average, as the term full-time equivalent
employee is defined in Section 2.3B of the Newport Grand Master Contract and as confirmed by the Rhode Island Department of Labor
and Training.

 

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4.           Promotional
Points Program

 

4.1           Pursuant
to and in accordance with Part B, Section 4(a)(ii) of the 2010 VLT Contracts Act, Newport Grand is authorized to conduct a Promotional
Points Program as that term is defined in Part B, Section 2(i) of the 2010 VLT Contracts Act. The terms and conditions of the Promotional
Points Program shall be established from time to time by the Division, with such terms to include, but not be limited to, a State
fiscal year audit of the Promotional Points Program, the cost of which audit shall he borne by Newport Grand. The approved amount
of the Promotional Points Program shall not exceed four percent (4%) of the amount of net terminal income of the prior Marketing
Year as that term is defined in the Part B, Section 2(g) of the 2010 VLT Contracts Act. Promotional Points are to be used by Newport
Grand to provide promotional points to customers and prospective customers of Newport Grand at the Newport Grand facility. The
provisions of the 2010 VLT Contracts Act and this First Amendment shall not prohibit Newport Grand, with prior approval from the
Division, from spending additional funds on the Promotional Points Program; provided, however, that said additional amounts shall
not be funded in any party by net terminal income.

 

5.           Marketing
Program

 

5.1           Pursuant
to Part B, Section 4(a)(iii) of the 2010 VLT Contracts Act (and in accordance with and notwithstanding anything in the Master Contracts
to the contrary)commencing on July 1, 2010 Newport Grand is authorized to conduct a Marketing Program as that term is defined in
Part B, Section 2(f) of the 2010 VLT Contracts Act. Said Marketing Program shall be monitored by the Division. For each Marketing
Year, to the extent that Newport Grand’s marketing expenditures exceed Five Hundred Sixty Thousand Dollars ($560,000.00),
the Division shall pay Newport Grand an amount equal to the product of such excess multiplied by the Division Percentage, provided
however, that (1) the total amount payable by the Division for each Marketing Year pursuant to Part B, Section 4(a)(iii) of
the VLT Contracts Act shall be capped at an amount equal to the Division Percentage multiplied by Eight Hundred Forty Thousand
Dollars ($840,000.00) and (2) the Division shall not owe any amount pursuant to said Part B, Section 4(a)(iii) of the 2010
VLT Contracts Act in any given Marketing Year unless, pursuant to RI General Laws §42-61.2-7(a), the State has received net
terminal income for such Marketing Year in an amount equal to or exceeding the amount of the net terminal income the State received
for the State’s fiscal year 2010; provided further, that in any partial Marketing Year, the total amount payable by the Division
shall be capped at an amount equal to Eight Hundred Forty Thousand Dollars ($840,000.00) multiplied by the Division Percentage,
the product of which shall be further reduced by multiplying it by a fraction, (A) the numerator of which is the number of days
in any such partial Marketing Year and (B) the denominator of which is 365. (It is anticipated that the only partial Marketing
Years shall occur between the effective date of the First Amendment and the last day of the fiscal year of the State during which
such effective date occurred and/or the first day of the fiscal year of the State in which the termination of the Newport Grand
Master Contract occurs and the termination date of the Master Contract occurs and the termination date of the Master Contract,
as the case may be.)

 

5.2           Pursuant
to Part B, Section 4(a)(v) of the 2010 VLT Contracts Act, upon the effective date of this First Amendment to the Newport Grand
Master Contract, there will be an allocation to Newport Grand of total video lottery net terminal income equal in percentage terms
to that amount allocated under Section 3 of the Master Video Lottery Terminal Contract between the Division of Lotteries and UTGR,
Inc. dated July 18 2005 (UTGR Master Contract). Total net terminal income due to Newport Grand shall be the equivalent total percentage
as calculated in Section 3.4 of said UTGR Master Contract so as to result in an equalized percentage of net terminal income payable
to all facilities operating video lottery terminals; provided, however, said allocation to Newport Grand set forth herein and in
Part B, Section 4(a)(v) shall apply beginning in the State’s fiscal year 2011.

 

    	 	3	 

     

    

 

5.3           Pursuant
to Part B, Section 4(c) and Section 5 of the 2010 VLT Contracts Act, any amounts related to the Marketing Program payable by the
Division shall be paid on a frequency agreed by the Division (but not less frequently than annually) out of that share of net terminal
income disbursed pursuant to R.I. Gen. Laws § 42-61.2-7(a)(l) as an administrative expense of the Division, after allocation
of net terminal income pursuant to R.I. Gen. Laws § 42-61.2-7(a)(l),(2),(3),(4),(5) and (6). In accordance with Part
B, Section 5(e) of the 2010 VLT Contracts Act, notwithstanding anything in R.I. Gen. Laws§ 42-61.2 to the contrary, the
Director of the Division is authorized to fund the Marketing Program as described in Part B, Section 4(a)(iii) of the 2010 VLT
Contracts Act.

 

6.           Hours
of Operation

 

6.1           Pursuant
to Part B, Section 4(a)(vi) of the 2010 VLT Contracts Act, Newport Grand, at its discretion, shall be permitted to maintain and
operate all video lottery games at Newport Grand up to between the hours of 9:00 A.M. and 2:00 A.M. the following day, seven (7)
days per week, including without limitation, federal and state recognized holidays.

 

7.           Waiver
and Release of Newport Grand

 

7.1           Pursuant
to Part B, Sections 4(a)(vii) and Section 4(e) entitled “Waiver and Release of Newport Grand” in Sections 6 and 7 of
the 2010 VLT Contracts Act, the State, on behalf of itself and each entity thereof, including, but not limited to the Division,
and the Department of Revenue, hereby expressly waives, and authorizes the Division, on behalf of itself and the Department of
Revenue on behalf of itself, to separately irrevocably waive, release, acknowledge the fulfillment of or to deem fulfilled, as
applicable, as of the effective date of the First Amendment to the Newport Grand Master Contract: (1) any obligation, covenant,
condition or commitment performed or to be performed by Newport Grand under or in section 4.1(i), of the Newport Grand Master Contract
prior to and/or including the effective date of the First Amendment to the Newport Grand Master Contract; (2) any Newport
Grand breach, default, noncompliance or delayed compliance on the part of Newport Grand of any representation, warranty, covenant,
term or condition of or under Section 4.1(i) of the Newport Grand Master Contract any time prior to and/or including the effective
date of the First Amendment to the Newport Grand Master Contract; and (3) in connection with Newport Grand’s right to
exercise the option for the First Extension only, any obligation, covenant, condition, circumstance or commitment under Section
2.3B of the Newport Grand Master Contract; specifically, said waiver, release, and acknowledgment shall not relate to the Second
Extension Term.

 

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8.           Enforcement
of Obligations

 

8.1           Pursuant
to Part B, Section 4(f) entitled “Enforcement of Obligations” in Part B Sections 6 and 7 of the 2010 VLT Contracts
Act, except as currently exists for Newport Grand under the provisions of R.I. Gen. Laws§ 42-61.2-7(a)(2) of the Rhode
Island Laws, and except as expressly provided in Section 8.2 below and in Section 4(f)(2) in Part B, Sections 6 and 7 of the 2010
VLT Contracts Act if the State or any entity thereof, including the Division, enters into any agreement or adopts, modifies or
amends any law, rule or regulation that would impair the rights of Newport Grand under the 2010 VLT Contracts Act and/or under
the Newport Grand Master Contract and/or this First Amendment, as may be amended in the future, and as extended pursuant to the
2010 VLT Contracts Act and as may be extended in the future (as so amended and extended hereby and as may be amended and extended
in the future), and/or fails to provide Newport Grand with slippage protection as described in the 2010 VLT Contracts Act and in
the Newport Grand Master Contract, Newport Grand may bring a claim against the State and/or Division, for actual damages and/or
specific performance and/or other equitable relief, notwithstanding any limitation on such damages imposed by the laws of the State.
For purposes of computing the actual damages with respect to any claim by Newport Grand against the State and/or the Division for
a failure to provide slippage protection pursuant to the provisions of the 2010 VLT Contracts Act and the Newport Grand Master
Contract, “actual damages” means the positive difference between: (i) the gaming facility revenues Newport Grand
would have retained had the State or any entity thereof, including, the Division, provided slippage protection for the period of
time that the State and/or the Division fails to provide slippage protection during the term of the Newport Grand Master Contract;
and (ii) the gaming facility revenues actually retained by Newport Grand.

 

8.2           Except
only as provided in Part B, Section 4(e) entitled “Waiver and Release of Newport Grand” in Part B, Sections 6 and 7
of the 2010 VLT Contracts Act nothing in the 2010 VLT Contracts Act or this First Amendment shall limit the authority of the Division
to enforce its rights under the Newport Grand Master Contract, nor limit the authority of the State or any department or division
thereof to enact, adopt and enforce laws and regulations which are of general application.

 

8.3           To
the extent any provisions of Part B, Section 4(f) entitled “Enforcement of Obligations” in Sections 6 and 7 of
the 2010 VLT Contracts Act and/or Section 8 of this First Amendment are inconsistent with the provisions of subsections (c) and
(d) of Section 5 of Chapters 322 and 323 of the public laws of 2005, the provisions of said Section 4(f) in Sections 6 and 7 of
the 2010 VLT Contracts Act shall govern.

 

9.           Assignment

 

As authorized by Part
B, Section 4(a)(iv) of the 2010 VLT Contracts Act, , the Parties agree that the Newport Grand Master Contract shall be amended
by deleting Section 12.5 of the Master Contract in its entirety and replacing it with the following:

 

“12.5 Assignment

 

The Newport Grand Master
Contract shall not be assigned by either Party without the prior written consent of the other Party, provided however, that so
long as the proposed assignee of Newport Grand or any of its permitted successors shall have been found to be qualified by the
Division to hold a video lottery terminal license, the Division shall not unreasonably withhold or delay its consent to such proposed
assignment. Proposed assignees and/or successors shall be subject to licensure by the appropriate regulatory authorities.”

 

    	 	5	 

     

    

 

10.         Interpretation

 

10.1         To
the extent that there is a conflict between the provisions of the Master Contract, this First Amendment and/or the 2010 VLT Contracts
Act, the provisions of the 2010 VLT Contracts Act shall govern.

 

11.         Notices

 

11.1         Each
of the Parties acknowledges and agrees that Section 12.6 of the Master Contract is hereby amended by revising the addresses for
notice as follows:

 

	If to Newport Grand:	Diane Hurley, Chief Executive Officer
	 	Newport Grand, LLC
	 	150 Admiral Kalbfus Road
	 	Newport, Rhode Island  02840
	 	 
	With copy to:	Laurent L. Rousseau, Esq.
	 	Moore Virgadamo & Lynch, Ltd.
	 	97 John Clarke Road
	 	Middletown, Rhode Island  02842
	 	 
	If to the Division:	Director, Division of Lotteries
	 	1425 Pontiac Avenue
	 	Cranston, Rhode Island  02920
	 	 
	With a copy to:	Director, Department of Revenue
	 	One Capitol Hill
	 	Providence, Rhode Island  02908

 

12.         Miscellaneous

 

12.1         Except
as modified hereby, the Master Contract shall be and remain in full force and effect, enforceable in accordance with its terms.
As such, it is hereby ratified and confirmed.

 

12.2         The
First Amendment contains the entire agreement by and between the Parties with respect to the subject matter of this First Amendment,
and supersedes and replaces all prior understandings or agreements (if any) oral and written, with respect to subject matter.

 

12.3         This
First Amendment may be executed in counterparts, each of which is deemed an original, but when taken together constitute one and
the same instrument.

 

[Remainder of page intentionally blank;
Signature page follows]

 

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IN WITNESS WHEREOF,
the Parties have caused this First Amendment to be signed by their duly-authorized representatives as of the date first set forth
above.

 

	NEWPORT GRAND, LLC	 	DIVISION OF LOTTERIES OF THE RHODE ISLAND DEPARTMENT OF REVENUE
	By:	/s/ Diane S. Hurley	 	By:	/s/ Gerald S. Aubin
	Name: 	Diane S. Hurley	 	Name:	Gerald S. Aubin
	Title:	Chief Executive Officer	 	Title:	Director

 

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Exhibit
A

 

2010 — H 8157 AS AMENDED

 

	LC02676	 

 

STATE
OF RHODE ISLAND

 

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2010

 

_____________

 

AN ACT

RELATING TO AUTHORIZING THE FIRST AMENDMENTS TO THE MASTER VIDEO LOTTERY TERMINAL CONTRACTS

 

Introduced By: Representatives Costantino,
Carter, Melo, San Bento, and Jackson

 

Date Introduced: May 19, 2010

 

Referred To: Placed on House Calendar

 

It is enacted by the
General Assembly as follows:

 

PART
A – Authorized Amendment to UTGR Master Contract

 

Section
1. Purpose. The general assembly hereby finds that the Twin River facility located in the Town of Lincoln is an important
source of revenue for the State of Rhode Island. The purpose of the following sections related to UTGR is to help effectuate a
plan for reorganization, pursuant to the United States Bankruptcy Code, for UTGR, and thereby strengthen the commercial health
of the Twin River facility and protect for the people of Rhode Island the public’s share of revenues generated at the Twin
River facility. It is the intent of the general assembly that this act, being necessary for the welfare of the State and its citizens,
shall be liberally construed so as to effectuate its purposes, including without limitation, the state’s be liberally construed
so as to effectuate its purposes, including without limitation, the state’s attempt to minimize certain commercial risks
faced by UTGR when it operates the facility and the business conducted thereon.

 

Section
2. Definitions. For purposes of this act, the following terms shall have the following meanings, and to the extent that
such terms are defined in Chapters 322 and 323 of the Public Laws of 2005, those terms are herby amended as follows, provided that
such terms, as they may be amended hereby, only apply to UTGR and Twin River and shall have no effect with regard to NGJA or Newport
Grand.

 

     

     

    

 

(a) “Control”
of an entity means the power of a person (or persons acting in concert) to cause the entity to be managed in accordance with the
wishes of that person (or persons acting in concert) whether by means of being the beneficial owner of more than fifty percent
(50%) of the issued share capital or voting rights in that entity, or having the right to appoint or remove a majority of the directors
or otherwise control the votes at board meetings of that entity.

 

(b) “Director”
means the director of the division of lotteries.

 

(c) “Division”
means the division of lotteries within the department of revenue and/or any successor as party to the UTGR Master Contract.

 

(d) “Division
Percentage” means for any Marketing Year, the Division’s percentage of net terminal income as set forth in section
42-61.2-7.

 

(e) “First Amendment”
means that certain first amendment to the UTGR Master Contract authorized herein, which first amendment is to be entered into by
and between the Division, the department of transportation, and UTGR.

 

(f) “Lincoln
Park” and “Twin River” each means the gaming and entertainment facility located at 100 Twin River Road, Lincoln,
Rhode Island.

 

(g) “Marketing
Program” means that Marketing Program authorized in section 4(a)(iii) of this act, which program shall include marketing
expenditures as defined by the Division.

 

(h) “Marketing
Year” means each fiscal year of the state or a portion thereof between the effective date of the First Amendment and the
termination date of the UTGR Master Contract.

 

(i) “Master Contract”
means with respect to UTGR, the UTGR Master Contract.

 

(j) “Plan”
means that plan of reorganization filed pursuant to chapter 11 of title 11 of the United States Code (11 U.S.C. sections 101-1532)
and to be confirmed by order of the United States Bankruptcy Court for the District of Rhode Island in those cased jointly administered
under case number 09-12418 (ANV).

 

(k) “Promotional
Points Program” means that promotional points program authorized in section 4(a)(ii) of this act.

 

(l) “State”
means the State of Rhode Island.

 

(m) “Term”
means with respect to UTGR, the UTGR Term.

 

(n) “UTGR”
means UTGR, Inc., a Delaware corporation and including such entity, as reorganized under the Plan, and any UTGR Business Affiliate.
References herein to “UTGR” shall include its permitted successors and assigns under the UTGR Master Contract, if licensed
by the Rhode Island department of business regulation.

 

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(o) “UTGR”
Business Affiliate” means any corporation, trust, partnership, joint venture or any other form of business entity that Controls,
is Controlled by or is under common Control with, UTGR.

 

(p) “UTGR Master
Contract” means that certain master video lottery terminal contract made as of July 18, 2005 by and between the Division,
department of transportation, and UTGR, as such UTGR Master Contract is amended and extended as authorized herein and/or as such
UTGR Master Contract may be assigned as permitted herein.

 

(q) “UTGR Term”
means the term of the UTGR Master Contract, which term commences on the effective date of the UTGR Master Contract and continues
through and including the fifth (5th) anniversary of such effective date; provided that UTGR shall have two (2) successive
five (5) year extension options consistent with the terms of the UTGR Master Contract.

 

Section
3. Unless otherwise amended by this act, the terms, conditions, provisions, and definitions of chapters 322 and 323
of the public laws of 2005 are hereby incorporated herein by reference and shall remain in full force and effect.

 

Section
4. Authorized Procurement of First Amendment to the Master Video Lottery Terminal Contract.

 

(a) Notwithstanding
any provisions of the general laws or regulations adopted thereunder to the contrary, including, but not limited to, the provisions
of: Chapters 322 and 323 of the public laws of 2005; chapter 2 of title 37 of the general laws; chapter 61 of title 42 of the general
laws; and chapter 61.2 of title 42 of the general laws, the Division is hereby expressly authorized and empowered, and with respect
to section 4(a)(vi) of this act the department of transportation is also hereby expressly authorized and empowered, to enter into
with UTGR a First Amendment to the UTGR Master Contract, to be become effective upon the effective date of the Plan for the following
purposes and containing the following terms and conditions, all of which shall be set forth in more particular detail in the First
Amendment:

 

(i) to provide for
a UTGR Term commencing on the effective date of the UTGR Master Contract and continuing through and including the fifth (5th)
anniversary of such effective date; provided that UTGR shall have two (2) successive five (5) years extension options with the
First Extension Term, as defined in the UTGR Master Contract, commencing on July 18, 2010 and the Second Extension Term, as defined
in the UTGR Master Contract, commencing on July 18, 2015. Except as otherwise provided herein in section 4(a)(vi), the exercise
of the option to extend said Master Contract shall be subject to the terms and conditions of section 2.5 of the UTGR Master Contract;
provided however, section 2.5B of the UTGR Master Contract shall be amended such that with respect to UTGR’s exercise of
its option to extend for the Second Extension Term, UTGR shall be required to certify to the Division that (i) there are 650
full-time equivalent employees at the Twin River facility on the date of the exercise of the option for the Second Extension Term;
and (ii) for the one-year period preceding the date said Second Extension Term option is exercised, there had been 650 full-time
equivalent employees on average, as the term full-time equivalent employee is defined in section 2.5B of the UTGR Master Contract
and as confirmed by the Rhode Island department of labor and training.

 

    	 	3	 

     

    

 

(ii) to provide for
a Promotional Points Program at Twin River, pursuant to the terms and conditions established from time to time by the Division
during the UTGR Term, such terms to include, but not limited to, a State fiscal year audit of the Promotional Points Program, the
cost of which audit shall be borne by UTGR. The approved amount of the Promotional Points Program shall not exceed four percent
(4%) of the amount of UTGR’s net terminal income of the prior Marketing Year. Said promotional points are to be used by UTGR
to provide promotional points to customers and prospective customers of UTGR at Twin River. Nothing herein shall prohibit UTGR,
with prior approval from the Division, from spending additional funds on the Promotional Points Program; provided, however, that
said additional amounts shall not be funded in any part by net terminal income.

 

(iii) to provide for
a Marketing Program for Twin River, commencing July 1, 2010, which shall be monitored by the Division and pursuant to which, for
each Marketing Year, to the extent UTGR’s marketing expenditures exceed four million dollars ($4,000,000), the Division shall
pay UTGR an amount equal to the product of such excess multiplied by the Division Percentage, provided, however, that (1) the
total amount payable by the Division for each Marketing Year pursuant to this section 4(a)(iii) shall be capped at an amount equal
to the Division Percentage multiplied by six million dollars ($6,000,000) and (2) the Division shall not owe any amount pursuant
to this section 4(a)(iii) in any given Marketing Year unless, pursuant to subsection 42-61.2-7(a), the State has received net terminal
income for such Marketing Year in an amount equal to or exceeding the amount of net terminal income the State received for the
State’s fiscal year 2009; provided, further, that in any partial Marketing Year, the total amount payable by the Division
shall be capped at an amount equal to six million dollars ($6,000,000) multiplied by the Division Percentage, the product of which
shall be further reduced by multiplying it by a fraction, (A) the numerator of which is the number of days in any such partial
Marketing Year and (B) the denominator of which is 365. (It is anticipated that the only partial Marketing Years shall occur between
the effective date of the First Amendment and the last day of the fiscal year of the State during which such effective date occurred
and/or the first day of the fiscal year of the State in which the termination of the UTGR Master Contract occurs and the termination
date of the UTGR Master Contract, as the case may be).

 

(iv) to provide that
the UTGR Master Contract shall not be assigned by either party without the prior written consent of the other party and to further
provide that so long as the proposed assignee of UTGR or any of its permitted successors shall have been found to be qualified
by the Division to hold a video lottery terminal license, the Division shall not unreasonably withhold or delay its consent to
such proposed assignment. Proposed assignees and/or successors shall be subject to licensure by the appropriate regulatory authorities.

 

(v) to permit UTGR,
at its discretion, to maintain and operate all video lottery games at Twin River up to twenty-four (24) hours per day, up to seven
(7) days per week, including without limitation, federal and state recognized holidays.

 

(vi) to irrevocably
waive, release, acknowledge the fulfillment of or to deem fulfilled, as applicable, as of the effective date of the Plan, (1) any
obligation, covenant, condition or commitment performed or to be performed by UTGR, BLB and/or any BLB affiliate under or in connection
with the UTGR Master Contract prior to and/or including the effective date of the Plan; (2) any UTGR breach, default, noncompliance
or delayed compliance on the part of UTGR, BLB and/or any BLB affiliate of any representation, warranty, covenant, term or condition
any time prior to and/or including the effective date of the Plan, and (3) in connection with UTGR’s right to exercise
the option for the First Extension Term only, any prior obligation, covenant, condition, circumstance or commitment under section
2.5.B of the UTGR Master Contract; specifically, said waiver, release, and acknowledgement of section 2.5B shall not relate to
the Second Extension Term.

 

    	 	4	 

     

    

 

(b) The entry into
by the Division, department of transportation, and UTGR of the First Amendment is hereby authorized, approved, ratified and confirmed
in all respects.

 

(c) Any amounts related
to the Marketing Program payable by the Division shall be paid on a frequency agreed by the Division (but no less frequently than
annually) out of that share of net terminal income disbursed pursuant to subsection 42-61.2-7(a)(1) as an administrative expense
of the Division, after allocation of net terminal income pursuant to subsections 42-61.2-7(a)(1), (2), (3), (4), (5), and (6).

 

Section
5. Section 42-61.2-7 of the General Laws in Chapter 42-61.2 entitled “Video Lottery Terminal” is hereby
amended as follows:

 

42-61.2-7. Division
of revenue. [Effective June 30, 2009 and expires June 30, 2010.] –

 

(a) Notwithstanding
the provisions of section 42-61-15, the allocation of net terminal income derived from video lottery games is as follows:

 

(1) For deposit in
the general fund and to the state lottery division fund for administrative purposes: Net terminal income not otherwise disbursed
in accordance with subdivisions (a)(2) — (a)(6) herein;

 

(i) Except for the
fiscal year ending June 30, 2008, nineteen one hundredths of one percent (0.19%) up to a maximum of twenty million dollars ($20,000,000)
shall be equally allocated to the distressed communities as defined in section 45-13-12 provided that no eligible community shall
receive more than twenty-five percent (25%) of that community’s currently enacted municipal budget as its share under this
specific subsection. Distributions made under this specific subsection are supplemental to all other distributions made under any
portion of general laws section 45-13-12. For the fiscal year ending June 30, 2008 distributions by community shall be identical
to the distributions made in the fiscal year ending June 30, 2007 and shall be made from general appropriations. For the fiscal
year ending June 30, 2009, the total state distribution shall be the same total amount distributed in the fiscal year ending June
30, 2008 and shall be made from general appropriations. For the fiscal year ending June 30, 2010, the total state distribution
shall be the same total amount distributed in the fiscal year ending June 30, 2009 and shall be made from general appropriations,
provided however that $784,458 of the total appropriation shall be distributed equally to each qualifying distressed community.

 

(ii) Five one hundredths
of one percent (0.05%) up to a maximum of five million dollars ($5,000,000) shall be appropriated to property tax relief to fully
fund the provisions of section 44- 33-2.1. The maximum credit defined in subdivision 44-33-9(2) shall increase to the maximum amount
to the nearest five dollar ($5.00) increment within the allocation until a maximum credit of five hundred dollars ($500) is obtained.
In no event shall the exemption in any fiscal year be less than the prior fiscal year.

 

    	 	5	 

     

    

 

(iii) One and twenty-two
one hundredths of one percent (1.22%) to fund section 44-34.1- 1, entitled “Motor Vehicle and Trailer Excise Tax Elimination
Act of 1998”, to the maximum amount to the nearest two hundred fifty dollar ($250) increment within the allocation. In no
event shall the exemption in any fiscal year be less than the prior fiscal year.

 

(iv) Except for the
fiscal year ending June 30, 2008, ten one hundredths of one percent (0.10%) to a maximum of ten million dollars ($10,000,000) for
supplemental distribution to communities not included in paragraph (a)(1)(i) above distributed proportionately on the basis of
general revenue sharing distributed for that fiscal year. For the fiscal year ending June 30, 2008 distributions by community shall
be identical to the distributions made in the fiscal year ending June 30, 2007 and shall be made from general appropriations. For
the fiscal year ending June 30, 2009, no funding shall be disbursed. For the fiscal year ending June 30, 2010 and thereafter, funding
shall be determined by appropriation.

 

(2) To the licensed
video lottery retailer:

 

(a) (i) Prior
to the effective date of the NGJA Master Contract, Newport Jai Ali twenty- six percent (26%) minus three hundred eighty four thousand
nine hundred ninety-six dollars ($384,996);

 

(ii) On and after the
effective date of the NGJA Master Contract, to the licensed video lottery retailer who is a party to the NGJA Master Contract,
all sums due and payable under said Master Contract minus three hundred eighty four thousand nine hundred ninety-six dollars ($384,996).

 

(b) (i) Prior
to the effective date of the UTGR Master Contract, to the present licensed video lottery retailer at Lincoln Park which is not
a party to the UTGR Master Contract, twenty- eight and eighty-five one hundredths percent (28.85%) minus seven hundred sixty-seven
thousand six hundred eighty-seven dollars ($767,687);

 

(ii) On and after the
effective date of the UTGR Master Contract, to the licensed video lottery retailer who is a party to the UTGR Master Contract,
all sums due and payable under said Master Contract minus seven hundred sixty-seven thousand six hundred eighty-seven dollars ($767,687).

 

(3) (i) To the
technology providers who are not a party to the GTECH Master Contract as set forth and referenced in Public Law 2003, Chapter 32,
seven percent (7%) of the net terminal income of the provider’s terminals;

 

(ii) To contractors
who are a party to the Master Contract as set forth and referenced in Public Law 2003, Chapter 32, all sums due and payable under
said Master Contract;

 

    	 	6	 

     

    

 

(iii) Notwithstanding
paragraphs (i) and (ii) above, there shall be subtracted proportionately from the payments to technology providers the sum of six
hundred twenty-eight thousand seven hundred thirty-seven dollars ($628,737);

 

(4) To the city of
Newport one and one hundredth percent (1.01%) of net terminal income of authorized machines at Newport Grand except that effective
November 9, 2009, the allocation shall be one and two tenths percent (1.2%) of net terminal income of authorized machines at Newport
Grand for each week the facility operates video lottery games on a twenty-four (24) hour basis for all eligible hours authorized
and to the town of Lincoln one and twenty-six hundredths percent (1.26%) of net terminal income of authorized machines at Lincoln
Park except that effective November 9, 2009, the allocation shall be one and forty- five hundredths percent (1.45%) of net terminal
income of authorized machines at Lincoln Park for each week the facility operates video lottery games on a twenty-four (24) hour
basis for all eligible hours authorized;

 

(5) To the Narragansett
Indian Tribe, seventeen hundredths of one percent (0.17%) of net terminal income of authorized machines at Lincoln Park up to a
maximum of ten million dollars ($10,000,000) per year, which shall be paid to the Narragansett Indian Tribe for the account of
a Tribal Development Fund to be used for the purpose of encouraging and promoting: home ownership and improvement, elderly housing,
adult vocational training; health and social services; childcare; natural resource protection; and economic development consistent
with state law. Provided, however, such distribution shall terminate upon the opening of any gaming facility in which the Narragansett
Indians are entitled to any payments or other incentives; and provided further, any monies distributed hereunder shall not be used
for, or spent on previously contracted debts; and

 

(6) Unclaimed prizes
and credits shall remit to the general fund of the state;

 

(7) Payments into the
state’s general fund specified in subdivisions (a)(1) and (a)(6) shall be made on an estimated monthly basis. Payment shall
be made on the tenth day following the close of the month except for the last month when payment shall be on the last business
day.

 

(b) Notwithstanding
the above, the amounts payable by the Division to UTGR related to the Marketing Program shall be paid on a frequency agreed by
the Division, but no less frequently than annually.

 

(c) Notwithstanding
anything in this chapter 61.2 of this title 42 to the contrary, the Director is authorized to fund the Marketing Program as described
above in regard to the First Amendment to the UTGR Master Contract.

 

42-61.2-7. Division
of revenue. [Effective June 30, 2010] – (a) Notwithstanding the provisions of section 42-61-15, the allocation
of net terminal income derived from video lottery games is as follows:

 

(1) For deposit in
the general fund and to the state lottery division fund for administrative purposes: Net terminal income not otherwise disbursed
in accordance with subdivisions (a)(2) — (a)(6) herein;

 

    	 	7	 

     

    

 

(i) Except for the
fiscal year ending June 30, 2008, nineteen one hundredths of one percent (0.19%) up to a maximum of twenty million dollars ($20,000,000)
shall be equally allocated to the distressed communities as defined in section 45-13-12 provided that no eligible community shall
receive more than twenty-five percent (25%) of that community’s currently enacted municipal budget as its share under this
specific subsection. Distributions made under this specific subsection are supplemental to all other distributions made under any
portion of general laws section 45-13-12. For the fiscal year ending June 30, 2008 distributions by community shall be identical
to the distributions made in the fiscal year ending June 30, 2007 and shall be made from general appropriations. For the fiscal
year ending June 30, 2009, the total state distribution shall be the same total amount distributed in the fiscal year ending June
30, 2008 and shall be made from general appropriations. For the fiscal year ending June 30, 2010, the total state distribution
shall be the same total amount distributed in the fiscal year ending June 30, 2009 and shall be made from general appropriations,
provided however that $784,458 of the total appropriation shall be distributed equally to each qualifying distressed community.

 

(ii) Five one hundredths
of one percent (0.05%) up to a maximum of five million dollars ($5,000,000) shall be appropriated to property tax relief to fully
fund the provisions of section 44- 33-2.1. The maximum credit defined in subdivision 44-33-9(2) shall increase to the maximum amount
to the nearest five dollar ($5.00) increment within the allocation until a maximum credit of five hundred dollars ($500) is obtained.
In no event shall the exemption in any fiscal year be less than the prior fiscal year.

 

(iii) One and twenty-two
one hundredths of one percent (1.22%) to fund section 44-34.1-1, entitled “Motor Vehicle and Trailer Excise Tax Elimination
Act of 1998”, to the maximum amount to the nearest two hundred fifty dollar ($250) increment within the allocation. In no
event shall the exemption in any fiscal year be less than the prior fiscal year.

 

(iv) Except for the
fiscal year ending June 30, 2008, ten one hundredths of one percent (0.10%) to a maximum of ten million dollars ($10,000,000) for
supplemental distribution to communities not included in paragraph (a)(1)(i) above distributed proportionately on the basis of
general revenue sharing distributed for that fiscal year. For the fiscal year ending June 30, 2008 distributions by community shall
be identical to the distributions made in the fiscal year ending June 30, 2007 and shall be made from general appropriations. For
the fiscal year ending June 30, 2009, no funding shall be disbursed. For the fiscal year ending June 30, 2010 and thereafter, funding
shall be determined by appropriation.

 

(2) To the licensed
video lottery retailer:

 

(a) (i) Prior to the
effective date of the NGJA Master Contract, Newport Jai Ali twenty- six percent (26%) minus three hundred eighty four thousand
nine hundred ninety-six dollars ($384,996);

 

(ii) On and after the
effective date of the NGJA Master Contract, to the licensed video lottery retailer who is a party to the NGJA Master Contract,
all sums due and payable under said Master Contract minus three hundred eighty four thousand nine hundred ninety-six dollars ($384,996).

 

    	 	8	 

     

    

 

(b) (i) Prior to the
effective date of the UTGR Master Contract, to the present licensed video lottery retailer at Lincoln Park which is not a party
to the UTGR Master Contract, twenty- eight and eighty-five one hundredths percent (28.85%) minus seven hundred sixty-seven thousand
six hundred eighty-seven dollars ($767,687);

 

(ii) On and after the
effective date of the UTGR Master Contract, to the licensed video lottery retailer who is a party to the UTGR Master Contract,
all sums due and payable under said Master Contract minus seven hundred sixty-seven thousand six hundred eighty-seven dollars ($767,687).

 

(3) (i) To the technology
providers who are not a party to the GTECH Master Contract as set forth and referenced in Public Law 2003, Chapter 32, seven percent
(7%) of the net terminal income of the provider’s terminals;

 

(ii) To contractors
who are a party to the Master Contract as set forth and referenced in Public Law 2003, Chapter 32, all sums due and payable under
said Master Contract;

 

(iii) Notwithstanding
paragraphs (i) and (ii) above, there shall be subtracted proportionately from the payments to technology providers the sum of six
hundred twenty-eight thousand seven hundred thirty-seven dollars ($628,737);

 

(4) To the city of
Newport one and one hundredths percent (1.01%) of net terminal income of authorized machines at Newport Grand and to the town of
Lincoln one and twenty-six hundredths (1.26%) of net terminal income of authorized machines at Lincoln Park; and

 

(5) To the Narragansett
Indian Tribe, seventeen hundredths of one percent (0.17%) of net terminal income of authorized machines at Lincoln Park up to a
maximum of ten million dollars ($10,000,000) per year, which shall be paid to the Narragansett Indian Tribe for the account of
a Tribal Development Fund to be used for the purpose of encouraging and promoting: home ownership and improvement, elderly housing,
adult vocational training; health and social services; childcare; natural resource protection; and economic development consistent
with state law. Provided, however, such distribution shall terminate upon the opening of any gaming facility in which the Narragansett
Indians are entitled to any payments or other incentives; and provided further, any monies distributed hereunder shall not be used
for, or spent on previously contracted debts; and

 

(6) Unclaimed prizes
and credits shall remit to the general fund of the state;

 

(7) Payments into the
state’s general fund specified in subdivisions (a)(1) and (a)(6) shall be made on an estimated monthly basis. Payment shall
be made on the tenth day following the close of the month except for the last month when payment shall be on the last business
day.

 

(b) Notwithstanding
the above, the amounts payable by the Division to UTGR related to the Marketing Program shall be paid on a frequency agreed by
the Division, but no less frequently than annually.

 

    	 	9	 

     

    

 

(c) Notwithstanding
anything in this chapter 61.2 of this title 42 to the contrary, the Director is authorized to fund the Marketing Program as described
above in regard to the First Amendment to the UTGR Master Contract.

 

Section
6. Chapter 322 of the 2005 Public Laws entitled “An Act Enabling the Division of Lotteries to Enter into a Master
Video Lottery Terminal Contract with UTGR, Inc. and to Enter into a Master Video Lottery Terminal Contract With Newport Grand Jai
Alai, LLC.” is hereby amended by adding thereto the following sections:

 

Section 8A. Waiver
and Release of UTGR, BLB and BLB Affiliates.

 

The State, on behalf
of itself and each entity thereof, including, but not limited to, the Division, and the department of revenue and the department
of transportation, hereby expressly waives and authorizes the Division, on behalf of itself and the department of revenue and the
department of transportation on behalf of itself, to separately irrevocably waive, release, acknowledge the fulfillment of or to
deem fulfilled, as applicable, as of the effective date of the Plan: (1) any obligation, covenant, condition or commitment
performed or to be performed by UTGR, BLB and/or any BLB affiliate under or in connection with the UTGR Master Contract prior to
and/or including the effective date of the Plan; (2) any UTGR breach, default, noncompliance or delayed compliance on the
part of UTGR, BLB and/or any BLB affiliate of any representation, warranty, covenant, term or condition any time prior to and/or
including the effective date of the Plan; and (3) in connection with UTGR’s right to exercise the option for the First
Extension only, any obligation, covenant, condition, circumstance or commitment under section 2.5.B of the UTGR Master Contract;
specifically, said waiver, release, and acknowledgement of section 2.5B shall not relate to the Second Extension Term.

 

Section 8B. Enforcement
of Obligations.

 

(a) Except as currently
exists for Twin River under the provisions of subsection 42-61.2- 7(a)(2) and except as hereinafter expressly provided in section
8B(b), hereof, if the State or any entity thereof, including the Division, enters into any agreement or adopts, modifies or amends
any law, rule or regulation that would impair the rights of UTGR under this act and/or under the UTGR Master Contract, as may be
amended in the future, and as extended pursuant to this act and as may be extended in the future (as so amended and extended by
this act and as may be amended and extended in the future), and/or fails to provide UTGR with slippage protection as described
herein and the UTGR Master Contract, UTGR may bring a claim against the State and/or Division, for actual damages and/or specific
performance and/or other equitable relief, notwithstanding any limitation on such damages imposed by the laws of the State. For
purposes of computing the actual damages with respect to any claim by UTGR against the State and/or the Division for a failure
to provide slippage protection pursuant to the provisions of this act and the UTGR Master Contract, “actual damages”
means the positive difference between: (i) the gaming facility revenues UTGR would have retained had the State or any entity
thereof, including, the Division, provided slippage protection for the period of time that the State and/or the Division fails
to provide slippage protect on during the term of the UTGR Master Contract; and (ii) the gaming facility revenues actually
retained by UTGR.

 

    	 	10	 

     

    

 

(b) Except only as
provided in section 8A, nothing in this act shall limit the authority of the Division to enforce its rights under the UTGR Master
Contract. Except as provided in section 8B(a), nothing in this act shall limit the authority of the State to enact, adopt and enforce
laws and regulations which are of general application.

 

(c) In the event of
any inconsistency between the provisions of this section 8B and the provisions of subsections (c) and (d) of section 5 of chapters
322 and 323 of the public laws of 2005, the provisions of this section 8B shall govern.

 

(d) The Division is
authorized and empowered to amend the UTGR Master Contract consistent with the provisions of this act.

 

Section
7. Chapter 323 of the 2005 Public Laws entitled “An Act Enabling the Division of Lotteries to Enter into a Master
Video Lottery Terminal Contract with UTGR, Inc. and to Enter into a Master Video Lottery Terminal Contract With Newport Grand Jai
Alai, LLC.” is hereby amended by adding thereto the following sections:

 

Section 8A. Waiver
and Release of UTGR, BLB and BLB Affiliates.

 

The State, on behalf
of itself and each entity thereof, including, but not limited to, the Division, and the department of revenue and the department
of transportation, hereby expressly waives and authorizes the Division on behalf of itself and the department of revenue and the
department of transportation on behalf of itself, to separately irrevocably waive, release, acknowledge the fulfillment of or to
deem fulfilled, as applicable, as of the effective date of the Plan: (1) any obligation, covenant, condition or commitment
performed or to be performed by UTGR, BLB and/or any BLB affiliate under or in connection with the UTGR Master Contract prior to
and/or including the effective date of the Plan; (2) any UTGR breach, default, noncompliance or delayed compliance on the
part of UTGR, BLB and/or any BLB affiliate of any representation, warranty, covenant, term or condition any time prior to and/or
including the effective date of the Plan; and (3) in connection with UTGR’s right to exercise the option for the First
Extension only, any obligation, covenant, condition, circumstance or commitment under section 2.5.B of the UTGR Master Contract;
specifically, said waiver, release, and acknowledgement of section 2.5B shall not relate to the Second Extension Term.

 

Section 8B. Enforcement
of Obligations.

 

(a) Except as currently
exists for Twin River under the provisions of subsection 42-61.2- 7(a)(2) and except as hereinafter expressly provided in section
8B(b), hereof, if the State or any entity thereof, including the Division, enters into any agreement or adopts, modifies or amends
any law, rule or regulation that would impair the rights of UTGR under this act and/or under the UTGR Master Contract, as may be
amended in the future, and as extended pursuant to this act and as may be extended in the future (as so amended and extended by
this act and as may be amended and extended in the future), and/or fails to provide UTGR with slippage protection as described
herein and the UTGR Master Contract, UTGR may bring a claim against the State and/or Division, for actual damages and/or specific
performance and/or other equitable relief, notwithstanding any limitation on such damages imposed by the laws of the State. For
purposes of computing the actual damages with respect to any claim by UTGR against the State and/or the Division for a failure
to provide slippage protection pursuant to the provisions of this act and the UTGR Master Contract, “actual damages”
means the positive difference between: (i) the gaming facility revenues UTGR would have retained had the State or any entity
thereof, including, the Division, provided slippage protection for the period of time that the State and/or the Division fails
to provide slippage protect on during the term of the UTGR Master Contract; and (ii) the gaming facility revenues actually
retained by UTGR.

 

    	 	11	 

     

    

 

(b) Except only as
provided in section 8A, nothing in this act shall limit the authority of the Division to enforce its rights under the UTGR Master
Contract. Except as provided in section 8B(a), nothing in this act shall limit the authority of the State to enact, adopt and enforce
laws and regulations which are of general application.

 

(c) In the event of
any inconsistency between the provisions of this section 8B and the provisions of subsections (c) and (d) of section 5 of chapters
322 and 323 of the public laws of 2005, the provisions of this section 8B shall govern.

 

(d) The Division is
authorized and empowered to amend the UTGR Master Contract consistent with the provisions of this act.

 

Section
8. Section 8 of Chapter 322 of the 2005 Public Laws entitled “An Act Enabling the Division of Lotteries to Enter
into a Master Video Lottery Terminal Contract with UTGR, Inc. and to Enter into a Master Video Lottery Terminal Contract With Newport
Grand Jai Alai, LLC.” is hereby amended as follows:

 

SECTION 8. State’s
Lincoln Park Obligations Contingent Upon Acquisition Completion.

 

The obligations of
the State, including the department of transportation and/or the division, set forth under the provisions of this act shall be
and are hereby declared to be expressly contingent upon the acquisition of the Wembley US Group by BLB or a BLB Affiliate taking
place, as contemplated in this act. Except as may be permitted by the UTGR Master Contract, this act shall not be deemed and/or
construed to create and or vest any rights in BLB, a BLB Affiliate, or any entity Controlling, Controlled by or under common Control
with UTGR, which may be assigned, delegated, and/or otherwise transferred to any other entity; provided however, that notwithstanding
subsection 41-3.1-3(c), (i) nothing in this act shall restrict the ability of any person owning all or part of UTGR, including
a person (or persons acting in concert) Controlling UTGR, from assigning, delegating and/or otherwise transferring its (or their)
interest in UTGR to any other entity, and (ii) any such assignment, delegation and/or transfer shall not affect UTGR’s
pari-mutuel license; provided however, that any such proposed assignment, delegation and/or transfer that effects a change of Control
of UTGR shall be subject to prior approval and licensure by the appropriate regulatory authorities. Nothing herein shall limit
the ability of the department of business regulation, in connection with any such proposed assignment, delegation and/or transfer
that effects a change of Control of UTGR, to investigate and subject to the regulatory due diligence process, any holder of an
ownership interest regardless of percentage of ownership held.

 

    	 	12	 

     

    

 

Section
9. Section 8 of Chapter 323 of the 2005 Public Laws entitled “An Act Enabling the Division of Lotteries to Enter
into a Master Video Lottery Terminal Contract with UTGR, Inc. and to Enter into a Master Video Lottery Terminal Contract With Newport
Grand Jai Alai, LLC.” is hereby amended to read as follows:

 

SECTION 8. State’s
Lincoln Park Obligations Contingent Upon Acquisition Completion.

 

The obligations of
the State, including the department of transportation and/or the division, set forth under the provisions of this act shall be
and are hereby declared to be expressly contingent upon the acquisition of the Wembley US Group by BLB or a BLB Affiliate taking
place, as contemplated in this act. Except as may be permitted by the UTGR Master Contract, this act shall not be deemed and/or
construed to create and or vest any rights in BLB, a BLB Affiliate, or any entity Controlling, Controlled by or under common Control
with UTGR, which may be assigned, delegated, and/or otherwise transferred to any other entity; provided however, that notwithstanding
subsection 41-3.1-3(c), (i) nothing in this act shall restrict the ability of any person owning all or part of UTGR, including
a person (or persons acting in concert) Controlling UTGR, from assigning, delegating and/or otherwise transferring its (or their)
interest in UTGR to any other entity, and (ii) any such assignment, delegation and/or transfer shall not affect UTGR’s
pari-mutuel license; provided however, that any such proposed assignment, delegation and/or transfer that effects a change of Control
of UTGR shall be subject to prior approval and licensure by the appropriate regulatory authorities. Nothing herein shall limit
the ability of the department of business regulation, in connection with any such proposed assignment, delegation and/or transfer
that effects a change of Control of UTGR, to investigate and subject to the regulatory due diligence process, any holder of an
ownership interest regardless of percentage of ownership held.

 

Section
10. Consistent with the Rhode Island Constitution, nothing in this act shall be deemed to give any person or entity
other than the Division operational control of video lottery games or the conduct thereof, and provided further, this act shall
not affect any statutory authority establishing regulatory authority over or control by any other State agency(ies) of Twin River,
its licensees, Video Lottery Terminals, individuals, and/or entities as appropriate.

 

Section
11. Severability. If any clause, sentence, paragraph, section, or part of this act shall be adjudged by any court of
competent jurisdiction as invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined
in its operation to clause, sentence, paragraph, section or part directly involved in the controversy in which such judgment shall
have been rendered.

 

Section
12. This act shall take effect upon passage.

 

PART
B – Authorized Amendment to Newport Grand Master Contract

 

Section
1. Purpose. The general assembly hereby finds that the Newport Grand facility located in the City of Newport is an important
source of revenue for the State of Rhode Island. The purpose of the following sections related to Newport Grand is to help strengthen
the commercial health of the Newport Grand facility and protect for the people of Rhode Island the public’s share of revenues
generated at the Newport Grand facility. It is the intent of the general assembly that this act, being necessary for the welfare
of the State and its citizens, shall be liberally construed so as to effectuate its purposes, including without limitation, the
state’s attempt to minimize certain commercial risks faced by Newport Grand when it operates the facility and the business
conducted thereon.

 

    	 	13	 

     

    

 

Section
2. Definitions. For purposes of this act, the following terms shall have the following meanings, and to the extent that
such terms are defined in Chapters 322 and 323 of the Public Laws of 2005, those terms are herby amended as follows, provided that
such terms, as they may be amended hereby, only apply to Newport Grand and shall have no effect with regard to UTGR or Twin River.

 

(a) “Director”
means the director of the division of lotteries.

 

(b) “Division”
means the division of lotteries within the department of revenue and/or any successor as party to the Newport Grand Master Contract.

 

(c) “Division
Percentage” means for any Marketing Year, the Division’s percentage of net terminal income as set forth in section
42-61.2-7.

 

(d) “First Amendment”
means that certain first amendment to the Newport Grand Master Contract authorized herein, which first amendment is to be entered
into by and between the Division and Newport Grand.

 

(e) “Newport
Grand facility” means the gaming and entertainment facility located at 150 Admiral Kalbfus Road, Newport, Rhode Island.

 

(f) “Marketing
Program” means that Marketing Program authorized in section 4(a)(iii) of this act, which program shall include marketing
expenditures as defined by the Division.

 

(g) “Marketing
Year” means each fiscal year of the state or a portion thereof between the effective date of the First Amendment and the
termination date of the Newport Grand Master Contract.

 

(h) “Master Contract”
means with respect to Newport Grand, the Newport Grand Master Contract as the same may have heretofore been amended.

 

(i) “Promotional
Points Program” means that promotional points program authorized in section 4(a)(ii) of this act.

 

(j) “State”
means the State of Rhode Island.

 

(k) “Term”
means with respect to Newport Grand, the Newport Grand Term.

 

(l) “Newport
Grand” means Newport Grand, LLC, a Rhode Island Limited Liability corporation, Newport Grand being successor to “Newport
Grand Jai Alai, LLC” as defined in Newport Grand Master Contract. References herein to “Newport Grand” shall
include its permitted successors and assigns under the Newport Grand Master Contract, if licensed by the Rhode Island department
of business regulation.

 

    	 	14	 

     

    

 

(m) “Newport
Grand Master Contract” means that certain master video lottery terminal contract made as of November 23, 2005 by and between
the Division and Newport Grand Jai Alai, LLC, as such Newport Grand Master Contract is amended and extended as authorized herein
and/or as such Newport Grand Master Contract may be assigned as permitted herein.

 

(n) “Newport
Grand Term” means the term of the Newport Grand Master Contract, which term commences on the effective date of the Newport
Grand Master Contract and continues through and including the fifth (5th) anniversary of such effective date; provided
that Newport Grand shall have one (1) successive five (5) year extension option consistent with the terms of the Newport Grand
Master Contract, and a section option pursuant to section 4 (a)(i) below.

 

Section
3. Unless otherwise amended by this act, the terms, conditions, provisions, and definitions of chapters 322 and 323
of the public laws of 2005 are hereby incorporated herein by reference and shall remain in full force and effect.

 

Section
4. Authorized Procurement of First Amendment to the Master Video Lottery Terminal Contract.

 

(a) Notwithstanding
any provisions of the general laws or regulations adopted thereunder to the contrary, including, but not limited to, the provisions
of: Chapters 322 and 323 of the public laws of 2005; chapter 2 of title 37 of the general laws; chapter 61 of title 42 of the general
laws; and chapter 61.2 of title 42 of the general laws, the Division is hereby expressly authorized and empowered to enter into
with Newport Grand a First Amendment to the Newport Grand Master Contract, for the following purposes and containing the following
terms and conditions, all of which shall be set forth in more particular detail in the First Amendment:

 

(i) to provide for
a Newport Grand Term commencing on the effective date of the Newport Grand Master Contract and continuing through and including
the fifth (5th) anniversary of such effective date; provided that Newport Grand shall have two (2) successive five
(5) years extension options with the First Extension Term, as defined in the Newport Grand Master Contract, commencing on November
23, 2010 and the Second Extension Term, commencing on November 23, 2015. Except as otherwise provided herein in section 4(a)(vii),
the exercise of the option to extend said Master Contract shall be subject to the terms and conditions of section 2.3 of the Newport
Grand Master Contract; provided however, section 2.3B of the Newport Grand’s Master Contract shall be amended such that with
respect to UTGR’s exercise of its option to extend for the Second Extension Term, Newport Grand shall be required to certify
to the Division that (i) there are 180 full-time equivalent employees at the Newport Grand facility on the date of the exercise
of the option for the Second Extension Term; and (ii) for the one-year period preceding the date said Second Extension Term
option is exercised, there had been 180 full-time equivalent employees on average, as the term full-time equivalent employee is
defined in section 2.3B of the Newport Grand Master Contract and as confirmed by the Rhode Island department of labor and training.

 

    	 	15	 

     

    

 

(ii) to provide for
a Promotional Points Program at Newport Grand facility, pursuant to the terms and conditions established from time to time by the
Division during the Newport Grand Term, such terms to include, but not limited to, a State fiscal year audit of the Promotional
Points Program, the cost of which audit shall be borne by Newport Grand. The approved amount of the Promotional Points Program
shall not exceed four percent (4%) of the amount of Newport Grand’s net terminal income of the prior Marketing Year. Said
promotional points are to be used by Newport Grand to provide promotional points to customers and prospective customers of Newport
Grand at the Newport Grand facility. Nothing herein shall prohibit Newport Grand, with prior approval from the Division, from spending
additional funds on the Promotional Points Program; provided, however, that said additional amounts shall not be funded in any
part by net terminal income.

 

(iii) to provide for
a Marketing Program for Newport Grand facility, commencing on July 1, 2010, which shall be monitored by the Division and pursuant
to which, for each Marketing Year, to the extent Newport Grand’s marketing expenditures exceed five hundred sixty thousand
dollars ($560,000), the Division shall pay Newport Grand an amount equal to the product of such excess multiplied by the Division
Percentage, provided, however, that (1) the total amount payable by the Division for each Marketing Year pursuant to this
section 4(a)(iii) shall be capped at an amount equal to the Division Percentage multiplied by eight hundred forty thousand dollars
($840,000) and (2) the Division shall not owe any amount pursuant to this section 4(a)(iii) in any given Marketing Year unless,
pursuant to subsection 42-61.2-7(a), the State has received net terminal income for such Marketing Year in an amount equal to or
exceeding the amount of net terminal income the State received for the State’s fiscal year 2010; provided, further, that
in any partial Marketing Year, the total amount payable by the Division shall be capped at an amount equal to eight hundred forty
thousand dollars ($840,000) multiplied by the Division Percentage, the product of which shall be further reduced by multiplying
it by a fraction, (A) the numerator of which is the number of days in any such partial Marketing Year and (B) the denominator of
which is 365. (It is anticipated that the only partial Marketing Years shall occur between the effective date of the First Amendment
and the last day of the fiscal year of the State during which such effective date occurred and/or the first day of the fiscal year
of the State in which the termination of the Newport Grand Master Contract occurs and the termination date of the Newport Grand
Master Contract, as the case may be).

 

(iv) to provide that
the Newport Grand Master Contract shall not be assigned by either party without the prior written consent of the other party and
to further provide that so long as the proposed assignee of Newport Grand or any of its permitted successors shall have been found
to be qualified by the Division to hold a video lottery terminal license, the Division shall not unreasonably withhold or delay
its consent to such proposed assignment. Proposed assignees and/or successors shall be subject to licensure by the appropriate
regulatory authorities.

 

(v) To provide that
upon the effective date of the First Amendment to the Newport Grand Master Contract there will be an allocation to Newport Grand
of total video lottery net terminal income equal in percentage terms to that amount allocated under Section 3 of the Master Video
Lottery Terminal Contract between the Division of Lotteries and UTGR, Inc. dated July 18, 2005 (UTGR Master Contract). Total net
terminal income due to Newport Grand shall be the equivalent total percentage as calculated in Section 3.4 of said UTGR Master
Contract so as to result in an equalized percentage of net terminal income payable to all facilities operating video lottery terminals;
provided, however, the allocation to Newport Grand set forth in this section 4(a)(v) shall apply beginning in the state’s
fiscal year 2011.

 

    	 	16	 

     

    

 

(vi) to permit Newport
Grand, at its discretion, to maintain and operate all video lottery games at Newport Grand facility between the hours of 9:00 a.m.
and 2:00 a.m. the following day, up to seven (7) days per week, including without limitation, federal and state recognized holidays.

 

(vii) to irrevocably
waive, release, acknowledge the fulfillment of or to deem fulfilled, as applicable, as of the effective date of the First Amendment
to the Newport Grand Master Contract, (1) any obligation, covenant, condition or commitment performed or to be performed by
Newport Grand under or in section 4.1(i) of the Newport Grand Master Contract prior to and/or including the effective date of the
First Amendment to the Master Contract; (2) any Newport Grand breach, default, noncompliance or delayed compliance on the
part of Newport Grand of any representation, warranty, covenant, term or condition of or under section 4.1(i) of the Newport Grand
Master Contract any time prior to and/or including the effective date of the First Amendment to the Newport Grand Master Contract,
and (3) in connection with Newport Grand’s right to exercise the option for the First Extension Term only, any prior
obligation, covenant, condition, circumstance or commitment under section 2.3.B of the Newport Grand Master Contract; specifically,
said waiver, release, and acknowledgement shall not relate to the Second Extension Term.

 

(b) The entry into
by the Division, and Newport Grand of the First Amendment is hereby authorized, approved, ratified and confirmed in all respects.

 

(c) Any amounts related
to the Marketing Program payable by the Division shall be paid on a frequency agreed by the Division (but no less frequently than
annually) out of that share of net terminal income disbursed pursuant to subsection 42-61.2-7(a)(1) as an administrative expense
of the Division, after allocation of net terminal income pursuant to subsections 42-61.2- 7(a)(1), (2), (3), (4), (5), and (6).

 

Section
5. Section 42-61.2-7 of the General Laws in Chapter 42-61.2 entitled “Video Lottery Terminal” is hereby
amended as follows:

 

42-61.2-7. Division
of revenue. [Effective June 30, 2009 and expires June 30, 2010.] -

 

(a) Notwithstanding
the provisions of section 42-61-15, the allocation of net terminal income derived from video lottery games is as follows:

 

(1) For deposit in
the general fund and to the state lottery division fund for administrative purposes: Net terminal income not otherwise disbursed
in accordance with subdivisions (a)(2) — (a)(6) herein;

 

    	 	17	 

     

    

 

(i) Except for the
fiscal year ending June 30, 2008, nineteen one hundredths of one percent (0.19%) up to a maximum of twenty million dollars ($20,000,000)
shall be equally allocated to the distressed communities as defined in section 45-13-12 provided that no eligible community shall
receive more than twenty-five percent (25%) of that community’s currently enacted municipal budget as its share under this
specific subsection. Distributions made under this specific subsection are supplemental to all other distributions made under any
portion of general laws section 45-13-12. For the fiscal year ending June 30, 2008 distributions by community shall be identical
to the distributions made in the fiscal year ending June 30, 2007 and shall be made from general appropriations. For the fiscal
year ending June 30, 2009, the total state distribution shall be the same total amount distributed in the fiscal year ending June
30, 2008 and shall be made from general appropriations. For the fiscal year ending June 30, 2010, the total state distribution
shall be the same total amount distributed in the fiscal year ending June 30, 2009 and shall be made from general appropriations,
provided however that $784,458 of the total appropriation shall be distributed equally to each qualifying distressed community.

 

(ii) Five one hundredths
of one percent (0.05%) up to a maximum of five million dollars ($5,000,000) shall be appropriated to property tax relief to fully
fund the provisions of section 44- 33-2.1. The maximum credit defined in subdivision 44-33-9(2) shall increase to the maximum amount
to the nearest five dollar ($5.00) increment within the allocation until a maximum credit of five hundred dollars ($500) is obtained.
In no event shall the exemption in any fiscal year be less than the prior fiscal year.

 

(iii) One and twenty-two
one hundredths of one percent (1.22%) to fund section 44-34.1- 1, entitled “Motor Vehicle and Trailer Excise Tax Elimination
Act of 1998”, to the maximum amount to the nearest two hundred fifty dollar ($250) increment within the allocation. In no
event shall the exemption in any fiscal year be less than the prior fiscal year.

 

(iv) Except for the
fiscal year ending June 30, 2008, ten one hundredths of one percent (0.10%) to a maximum of ten million dollars ($10,000,000) for
supplemental distribution to communities not included in paragraph (a)(1)(i) above distributed proportionately on the basis of
general revenue sharing distributed for that fiscal year. For the fiscal year ending June 30, 2008 distributions by community shall
be identical to the distributions made in the fiscal year ending June 30, 2007 and shall be made from general appropriations. For
the fiscal year ending June 30, 2009, no funding shall be disbursed. For the fiscal year ending June 30, 2010 and thereafter, funding
shall be determined by appropriation.

 

(2) To the licensed
video lottery retailer:

 

(a) (i) Prior to the
effective date of the NGJA Master Contract, Newport Jai Ali twenty- six percent (26%) minus three hundred eighty four thousand
nine hundred ninety-six dollars ($384,996);

 

(ii) On and after the
effective date of the NGJA Master Contract, to the licensed video lottery retailer who is a party to the NGJA Master Contract,
all sums due and payable under said Master Contract minus three hundred eighty four thousand nine hundred ninety-six dollars ($384,996).

 

(b) (i) Prior to the
effective date of the UTGR Master Contract, to the present licensed video lottery retailer at Lincoln Park which is not a party
to the UTGR Master Contract, twenty- eight and eighty-five one hundredths percent (28.85%) minus seven hundred sixty-seven thousand
six hundred eighty-seven dollars ($767,687);

 

    	 	18	 

     

    

 

(ii) On and after the
effective date of the UTGR Master Contract, to the licensed video lottery retailer who is a party to the UTGR Master Contract,
all sums due and payable under said Master Contract minus seven hundred sixty-seven thousand six hundred eighty-seven dollars ($767,687).

 

(3) (i) To the technology
providers who are not a party to the GTECH Master Contract as set forth and referenced in Public Law 2003, Chapter 32, seven percent
(7%) of the net terminal income of the provider’s terminals;

 

(ii) To contractors
who are a party to the Master Contract as set forth and referenced in Public Law 2003, Chapter 32, all sums due and payable under
said Master Contract;

 

(iii) Notwithstanding
paragraphs (i) and (ii) above, there shall be subtracted proportionately from the payments to technology providers the sum of six
hundred twenty-eight thousand seven hundred thirty-seven dollars ($628,737);

 

(4) To the city of
Newport one and one hundredth percent (1.01%) of net terminal income of authorized machines at Newport Grand except that effective
November 9, 2009, the allocation shall be one and two tenths percent (1.2%) of net terminal income of authorized machines at Newport
Grand for each week the facility operates video lottery games on a twenty-four (24) hour basis for all eligible hours authorized
and to the town of Lincoln one and twenty-six hundredths percent (1.26%) of net terminal income of authorized machines at Lincoln
Park except that effective November 9, 2009, the allocation shall be one and forty- five hundredths percent (1.45%) of net terminal
income of authorized machines at Lincoln Park for each week the facility operates video lottery games on a twenty-four (24) hour
basis for all eligible hours authorized;

 

(5) To the Narragansett
Indian Tribe, seventeen hundredths of one percent (0.17%) of net terminal income of authorized machines at Lincoln Park up to a
maximum of ten million dollars ($10,000,000) per year, which shall be paid to the Narragansett Indian Tribe for the account of
a Tribal Development Fund to be used for the purpose of encouraging and promoting: home ownership and improvement, elderly housing,
adult vocational training; health and social services; childcare; natural resource protection; and economic development consistent
with state law. Provided, however, such distribution shall terminate upon the opening of any gaming facility in which the Narragansett
Indians are entitled to any payments or other incentives; and provided further, any monies distributed hereunder shall not be used
for, or spent on previously contracted debts; and

 

(6) Unclaimed prizes
and credits shall remit to the general fund of the state;

 

(7) Payments into the
state’s general fund specified in subdivisions (a)(1) and (a)(6) shall be made on an estimated monthly basis. Payment shall
be made on the tenth day following the close of the month except for the last month when payment shall be on the last business
day.

 

(d) Notwithstanding
the above, the amounts payable by the Division to Newport Grand related to the Marketing Program shall be paid on a frequency agreed
by the Division, but no less frequently than annually.

 

    	 	19	 

     

    

 

(e) Notwithstanding
anything in this chapter 61.2 of this title 42 to the contrary, the Director is authorized to fund the Marketing Program as described
above in regard to the First Amendment to the Newport Grand Master Contract.

 

42-61.2-7. Division
of revenue. [Effective June 30, 2010] – (a) Notwithstanding the provisions of section 42-61-15, the allocation of
net terminal income derived from video lottery games is as follows:

 

(1) For deposit in
the general fund and to the state lottery division fund for administrative purposes: Net terminal income not otherwise disbursed
in accordance with subdivisions (a)(2) — (a)(6) herein;

 

(i) Except for the
fiscal year ending June 30, 2008, nineteen one hundredths of one percent (0.19%) up to a maximum of twenty million dollars ($20,000,000)
shall be equally allocated to the distressed communities as defined in section 45-13-12 provided that no eligible community shall
receive more than twenty-five percent (25%) of that community’s currently enacted municipal budget as its share under this
specific subsection. Distributions made under this specific subsection are supplemental to all other distributions made under any
portion of general laws section 45-13-12. For the fiscal year ending June 30, 2008 distributions by community shall be identical
to the distributions made in the fiscal year ending June 30, 2007 and shall be made from general appropriations. For the fiscal
year ending June 30, 2009, the total state distribution shall be the same total amount distributed in the fiscal year ending June
30, 2008 and shall be made from general appropriations. For the fiscal year ending June 30, 2010, the total state distribution
shall be the same total amount distributed in the fiscal year ending June 30, 2009 and shall be made from general appropriations,
provided however that $784,458 of the total appropriation shall be distributed equally to each qualifying distressed community.

 

(ii) Five one hundredths
of one percent (0.05%) up to a maximum of five million dollars ($5,000,000) shall be appropriated to property tax relief to fully
fund the provisions of section 44- 33-2.1. The maximum credit defined in subdivision 44-33-9(2) shall increase to the maximum amount
to the nearest five dollar ($5.00) increment within the allocation until a maximum credit of five hundred dollars ($500) is obtained.
In no event shall the exemption in any fiscal year be less than the prior fiscal year.

 

(iii) One and twenty-two
one hundredths of one percent (1.22%) to fund section 44-34.1- 1, entitled “Motor Vehicle and Trailer Excise Tax Elimination
Act of 1998”, to the maximum amount to the nearest two hundred fifty dollar ($250) increment within the allocation. In no
event shall the exemption in any fiscal year be less than the prior fiscal year.

 

(iv) Except for the
fiscal year ending June 30, 2008, ten one hundredths of one percent (0.10%) to a maximum of ten million dollars ($10,000,000) for
supplemental distribution to communities not included in paragraph (a)(1)(i) above distributed proportionately on the basis of
general revenue sharing distributed for that fiscal year. For the fiscal year ending June 30, 2008 distributions by community shall
be identical to the distributions made in the fiscal year ending June 30, 2007 and shall be made from general appropriations. For
the fiscal year ending June 30, 2009, no funding shall be disbursed. For the fiscal year ending June 30, 2010 and thereafter, funding
shall be determined by appropriation.

 

    	 	20	 

     

    

 

(2) To the licensed
video lottery retailer:

 

(a) (i) Prior to the
effective date of the NGJA Master Contract, Newport Jai Ali twenty- six percent (26%) minus three hundred eighty four thousand
nine hundred ninety-six dollars ($384,996);

 

(ii) On and after the
effective date of the NGJA Master Contract, to the licensed video lottery retailer who is a party to the NGJA Master Contract,
all sums due and payable under said Master Contract minus three hundred eighty four thousand nine hundred ninety-six dollars ($384,996).

 

(b) (i) Prior to the
effective date of the UTGR Master Contract, to the present licensed video lottery retailer at Lincoln Park which is not a party
to the UTGR Master Contract, twenty- eight and eighty-five one hundredths percent (28.85%) minus seven hundred sixty-seven thousand
six hundred eighty-seven dollars ($767,687);

 

(ii) On and after the
effective date of the UTGR Master Contract, to the licensed video lottery retailer who is a party to the UTGR Master Contract,
all sums due and payable under said Master Contract minus seven hundred sixty-seven thousand six hundred eighty-seven dollars ($767,687).

 

(3) (i) To the technology
providers who are not a party to the GTECH Master Contract as set forth and referenced in Public Law 2003, Chapter 32, seven percent
(7%) of the net terminal income of the provider’s terminals;

 

(ii) To contractors
who are a party to the Master Contract as set forth and referenced in Public Law 2003, Chapter 32, all sums due and payable under
said Master Contract;

 

(iii) Notwithstanding
paragraphs (i) and (ii) above, there shall be subtracted proportionately from the payments to technology providers the sum of six
hundred twenty-eight thousand seven hundred thirty-seven dollars ($628,737);

 

(4) To the city of
Newport one and one hundredths percent (1.01%) of net terminal income of authorized machines at Newport Grand and to the town of
Lincoln one and twenty-six hundredths (1.26%) of net terminal income of authorized machines at Lincoln Park; and

 

(5) To the Narragansett
Indian Tribe, seventeen hundredths of one percent (0.17%) of net terminal income of authorized machines at Lincoln Park up to a
maximum of ten million dollars ($10,000,000) per year, which shall be paid to the Narragansett Indian Tribe for the account of
a Tribal Development Fund to be used for the purpose of encouraging and promoting: home ownership and improvement, elderly housing,
adult vocational training; health and social services; childcare; natural resource protection; and economic development consistent
with state law. Provided, however, such distribution shall terminate upon the opening of any gaming facility in which the Narragansett
Indians are entitled to any payments or other incentives; and provided further, any monies distributed hereunder shall not be used
for, or spent on previously contracted debts; and

 

    	 	21	 

     

    

 

(6) Unclaimed prizes
and credits shall remit to the general fund of the state;

 

(7) Payments into the
state’s general fund specified in subdivisions (a)(1) and (a)(6) shall be made on an estimated monthly basis. Payment shall
be made on the tenth day following the close of the month except for the last month when payment shall be on the last business
day.

 

(d) Notwithstanding
the above, the amounts payable by the Division to Newport Grand related to the Marketing Program shall be paid on a frequency agreed
by the Division, but no less frequently than annually.

 

(e) Notwithstanding
anything in this chapter 61.2 of this title 42 to the contrary, the Director is authorized to fund the Marketing Program as described
above in regard to the First Amendment to the Newport Grand Master Contract.

 

Section
6. Chapter 322 of the 2005 Public Laws entitled “An Act Enabling the Division of Lotteries to Enter into a Master
Video Lottery Terminal Contract with UTGR, Inc. and to Enter into a Master Video Lottery Terminal Contract With Newport Grand Jai
Alai, LLC.” is hereby amended by adding thereto the following sections:

 

Section 4(e). Waiver
and Release of Newport Grand.

 

The State, on behalf
of itself and each entity thereof, including, but not limited to, the Division, and the department of revenue hereby expressly
waives and authorizes the Division, on behalf of itself and the department of revenue on behalf of itself, to separately irrevocably
waive, release, acknowledge the fulfillment of or to deem fulfilled, as applicable, as of the effective date of the First Amendment
to the Newport Grand Master Contract: (1) any obligation, covenant, condition or commitment performed or to be performed by
Newport Grand under or in section 4.1(i) of the Newport Grand Master Contract prior to and/or including the effective date of the
First Amendment to the Newport Grand Master Contract; (2) any Newport Grand breach, default, noncompliance or delayed compliance
on the part of Newport Grand of any representation, warranty, covenant, term or condition of or under section 4.1(i) of the Newport
Grand Master Contract any time prior to and/or including the effective date of the First Amendment to the Newport Grand Master
Contract; and (3) in connection with Newport Grand’s right to exercise the option for the First Extension only, any
obligation, covenant, condition, circumstance or commitment under section 2.3.B of the Newport Grand Master Contract; specifically,
said waiver, release, and acknowledgement shall not relate to the Second Extension Term.

 

    	 	22	 

     

    

 

Section 4(f). Enforcement
of Obligations.

 

(1) Except as currently
exists for Newport Grand under the provisions of subsection 42- 61.2-7(a)(2) and except as hereinafter expressly provided in section
4(f)(2), hereof, if the State or any entity thereof, including the Division, enters into any agreement or adopts, modifies or amends
any law, rule or regulation that would impair the rights of Newport Grand under this act and/or under the Newport Grand Master
Contract, as may be amended in the future, and as extended pursuant to this act and as may be extended in the future (as so amended
and extended by this act and as may be amended and extended in the future), and/or fails to provide Newport Grand with slippage
protection as described herein and the Newport Grand Master Contract, Newport Grand may bring a claim against the State and/or
Division, for actual damages and/or specific performance and/or other equitable relief, notwithstanding any limitation on such
damages imposed by the laws of the State. For purposes of computing the actual damages with respect to any claim by Newport Grand
against the State and/or the Division for a failure to provide slippage protection pursuant to the provisions of this act and the
Newport Grand Master Contract, “actual damages” means the positive difference between: (i) the gaming facility
revenues Newport Grand would have retained had the State or any entity thereof, including, the Division, provided slippage protection
for the period of time that the State and/or the Division fails to provide slippage protect on during the term of the Newport Grand
Master Contract; and (ii) the gaming facility revenues actually retained by Newport Grand.

 

(2) Except only as
provided in section 4(e), nothing in this act shall limit the authority of the Division to enforce its rights under the Newport
Grand Master Contract. Except as provided in section 4(f)(1), nothing in this act shall limit the authority of the State to enact,
adopt and enforce laws and regulations which are of general application.

 

(3) In the event of
any inconsistency between the provisions of this section 4(f) and the provisions of subsections (c) and (d) of section 5 of chapters
322 and 323 of the public laws of 2005, the provisions of this section 4(f) shall govern.

 

(4) The Division is
authorized and empowered to amend the Newport Grand Master Contract consistent with the provisions of this act.

 

Section
7. Chapter 323 of the 2005 Public Laws entitled “An Act Enabling the Division of Lotteries to Enter into a Master
Video Lottery Terminal Contract with UTGR, Inc. and to Enter into a Master Video Lottery Terminal Contract With Newport Grand Jai
Alai, LLC.” is hereby amended by adding thereto the following sections:

 

Section 4(e). Waiver
and Release of Newport Grand.

 

The State, on behalf
of itself and each entity thereof, including, but not limited to, the Division, and the department of revenue hereby expressly
waives and authorizes the Division, on behalf of itself and the department of revenue on behalf of itself, to separately irrevocably
waive, release, acknowledge the fulfillment of or to deem fulfilled, as applicable, as of the effective date of the First Amendment
to the Newport Grand Master Contract: (1) any obligation, covenant, condition or commitment performed or to be performed by
Newport Grand under or in section 4.1 (i) of the Newport Grand Master Contract prior to and/or including the effective date
of the First Amendment to the Newport Grand Master Contract; (2) any Newport Grand breach, default, noncompliance or delayed
compliance on the part of Newport Grand of any representation, warranty, covenant, term or condition of or under section 4.1(i)
of the Newport Grand Master Contract any time prior to and/or including the effective date of the First Amendment to the Newport
Grand Master Contract; and (3) in connection with Newport Grand’s right to exercise the option for the First Extension
only, any obligation, covenant, condition, circumstance or commitment under section 2.3.B of the Newport Grand Master Contract;
specifically, said waiver, release, and acknowledgement shall not relate to the Second Extension Term.

 

    	 	23	 

     

    

 

Section 4(f). Enforcement
of Obligations.

 

(1) Except as currently
exists for Newport Grand under the provisions of subsection 42-61.2-7(a)(2) and except as hereinafter expressly provided in section
4(f)(2), hereof, if the State or any entity thereof, including the Division, enters into any agreement or adopts, modifies or amends
any law, rule or regulation that would impair the rights of Newport Grand under this act and/or under the Newport Grand Master
Contract, as may be amended in the future, and as extended pursuant to this act and as may be extended in the future (as so amended
and extended by this act and as may be amended and extended in the future), and/or fails to provide Newport Grand with slippage
protection as described herein and the Newport Grand Master Contract, Newport Grand may bring a claim against the State and/or
Division, for actual damages and/or specific performance and/or other equitable relief, notwithstanding any limitation on such
damages imposed by the laws of the State. For purposes of computing the actual damages with respect to any claim by Newport Grand
against the State and/or the Division for a failure to provide slippage protection pursuant to the provisions of this act and the
Newport Grand Master Contract, “actual damages” means the positive difference between: (i) the gaming facility
revenues Newport Grand would have retained had the State or any entity thereof, including, the Division, provided slippage protection
for the period of time that the State and/or the Division fails to provide slippage protect on during the term of the Newport Grand
Master Contract; and (i) the gaming facility revenues actually retained by Newport Grand.

 

(2) Except only as
provided in section 4(e), nothing in this act shall limit the authority of the Division to enforce its rights under the Newport
Grand Master Contract. Except as provided in section 4(f)(1), nothing in this act shall limit the authority of the State to enact,
adopt and enforce laws and regulations which are of general application.

 

(3) In the event of
any inconsistency between the provisions of this section 4(f) and the provisions of subsections (c) and (d) of section 5 of chapters
322 and 323 of the public laws of 2005, the provisions of this section 4(f) shall govern.

 

(4) The Division is
authorized and empowered to amend the Newport Grand Master Contract consistent with the provisions of this act.

 

Section
8. Consistent with the Rhode Island Constitution, nothing in this act shall be deemed to give any person or entity other
than the Division operational control of video lottery games or the conduct thereof, and provided further, this act shall not affect
any statutory authority establishing regulatory authority over or control by any other State agency(ies) of Newport Grand, its
licensees, Video Lottery Terminals, individuals, and/or entities as appropriate.

 

Section
9. Severability. If any clause, sentence, paragraph, section, or part of this act shall be adjudged by any court of
competent jurisdiction as invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined
in its operation to clause, sentence, paragraph, section or part directly involved in the controversy in which such judgment shall
have been rendered.

 

Section
10. This act shall take effect upon passage.

 

	LC02676	 

 

    	 	24	 

     

    

 

EXPLANATION

 

BY THE LEGISLATIVE COUNCIL

 

OF

 

AN ACT

 

RELATING TO AUTHORIZING THE FIRST AMENDMENTS
TO THE MASTER VIDEO LOTTERY TERMINAL CONTRACTS

 

***

 

This act would authorize
various amendments to the master video lottery terminal contracts.

 

This act would take
affect upon passage.

 

	LC02676	 

 

    	 	25Exhibit
10.16

 

SECOND AMENDMENT
TO MASTER VIDEO LOTTERY TERMINAL CONTRACT

 

This Second Amendment to Master Video Lottery
Contract (the “Second Amendment”) is made and entered into on this 31st of May, 2012, by and between the
Division of Lotteries of the Rhode Island Department of Revenue, an agency of the State of Rhode Island (formerly known as the
Division of Lotteries of the Rhode Island Department of Administration), with its principal address at 1425 Pontiac Avenue, Cranston,
Rhode Island 02920 (the “Division”), and Newport Grand, LLC, a Rhode Island Limited Liability Company, with its principal
address at 150 Admiral Kalbfus Road, Newport, Rhode Island 02840 (“Newport Grand”). This Second Amendment amends that
certain Master Video Lottery Terminal Contract by and between the Division and Newport Grand dated as of November 23, 2005 as amended
by Amendment dated January 25, 2006 and that certain First Amendment to Master Video Lottery Terminal Contract by and between the
Division and Newport Grand dated December 21, 2010 (the “First Amendment”), (collectively the “Master Contract”).
The Division and Newport Grand are referred to herein collectively as the “Parties,” and individually, as a “Party.”
This Second Amendment shall truce effect as set forth in Section 4 below.

 

WITNESSETH:

 

WHEREAS, the Division
and Newport Grand are parties to the Master Contract;

 

WHEREAS, during the
2010 legislative session of the Rhode Island General Assembly, the State of Rhode Island enacted into law 2010- H8157, as amended,
entitled “An Act Relating to Authorizing the First Amendments to the Master Video Lottery Terminal Contract,” signed
into by the Governor of Rhode Island on May 27, 2010 (the “2010 VLT Contracts Act”);

 

WHEREAS, pursuant to
and in accordance with the 2010 VLT Contracts Act, Section 4.1 of the First Amendment authorized Newport Grand to conduct a Promotional
Points Program as detailed in said Section 4.1;

 

WHEREAS, during the
2011 legislative session of the Rhode Island General Assembly, the State of Rhode Island enacted into law 2011-H 5894 Substitute
A, as amended entitled “An Act Making Appropriations for the Support of the State for the Fiscal Year Ending June 30, 2012
(the “FY 2012 State Budget”), which FY 2012 State Budget included Article 25, entitled “Article 25, as Amended,
Relating to Authorizing State-Operated Casino Gaming at Twin River” attached hereto as Exhibit A (the “2011 Gaming
Act”);

 

WHEREAS, the FY 2012
State Budget was signed by the Governor of Rhode Island on June 30, 2011;

 

WHEREAS, Section 8
of the 2011 Gaming Act, inter alia, expressly authorized and empowered the Division to enter into with Newport Grand a Second
Amendment to the Master Contract for certain specified purposes as set forth in Section 8(a)(i) and (ii) of the Gaming Act; and

 

NOW, THEREFORE, in
consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
and in consideration of the mutual promises, covenants, obligations and conditions herein contained, the Division and Newport Grand
hereby agree as follows:

 

    	 		 

     

    

 

1.          Definitions
and Interpretations.

 

1.1         References
to the “Agreement” contained in this Second Amendment, and the Master Contract and the First Amendment thereto are,
or shall be deemed to be, references to the Master Contract as amended and extended by the First Amendment and this Second Amendment.

 

1.2         Any
capitalized term used in this Second Amendment but not defined herein shall have the meaning given it in the Master Contract and/or
First Amendment

 

2.          Promotional
Points Program.

 

2.1         Pursuant
to and in accordance with the authorization granted to the Division in Section 8 of the 2011 Gaming Act, Section 4.1 of the First
Amendment is hereby amended to add the following provision thereto:

 

“Notwithstanding
the above, commencing in FY 2012, in addition to the Promotional Points Program established in Part B, Section 4(a)(ii) of the
2010 VLT Contracts Act, the Division is authorized to grant approval to Newport Grand an additional amount of Promotional Points
not to exceed seven hundred fifty thousand dollars ($750,000) pursuant to the same terms and conditions authorized by Chapter 16
if the Public Laws of 2010 and this Section 4.1.”

 

3.          Marketing
Program.

 

3.1         Pursuant
to and in accordance with the authorization granted to the Division in Section 8 of the 2011 Gaming Act, Section 5.1 of the First
Amendment is hereby amended by deleting the following language from the first paragraph of Section 5.1 of the First Amendment:

 

“(2) the Division
shall not owe any amount pursuant to said Part B, Section 4(a)(ii) of the 2010 VLT Contracts Act in any given Marketing Year unless,
pursuant to RI General Laws §42-61.2-7(a), the State has received net terminal income for such Marketing Year in an amount
equal to or exceeding the amount of the net terminal income the State received for the State’s fiscal year 2010.”

 

3.2         The
striking of the language designated in 3.1 above, shall allow the Marketing Program and payments thereunder to be in effect at
Newport Grand for fiscal year 2011 pursuant to the terms and conditions seth forth in Section 8 of the 2011 Gaming Act.

 

4.          Effective
Date.

 

4.1        This
Second Amendment shall be effective as of the 1st day of July 2011.

 

    	 	- 2 -	 

     

    

 

5.          Miscellaneous.

 

5.1         Except
as specifically modified in this Second Amendment, all other terms of the Master Contract and the First Amendment shall remain
in full force and effect.

 

5.2         This
Second Amendment contains the entire agreement by and between the parties and supersedes and replaces all prior understandings
or agreements (if any) oral or written, with respect to such subject matter.

 

5.3        This
Second Amendment may be executed in counterparts, each of which is deemed an original, but when taken together constitute one and
the same instrument.

 

IN WITNESS WHEREOF, the parties have caused
this Second Amendment to be signed by their duly authorized representatives as of the date first set forth above,

 

	NEWPORT GRAND, LLC	 	Division of Lotteries of the Rhode Island Department of Revenue
	 	 	 
	/s/ Diane S. Hurley	 	/s/ Gerald S. Aubin
	Name	 	Name
	 	 	 
	Chief Executive Officer	 	Director
	Title	 	Title

 

    	 	- 3 -	 

     

    

 

EXHIBIT A

 

2011 Gaming Act

 

    	 	- 4 -	 

     

    

 

ARTICLE 25 AS AMENDED

 

RELATING TO AUTHORIZING STATE-OPERATED CASINO
GAMING AT TWIN

 

“ARTICLE __________

 

RELATING TO AUTHORIZING
STATE-OPERATED CASINO GAMING AT TWIN RIVER SUBJECT TO STATEWIDE AND LOCAL VOTER APPROVAL

 

SECTION 1. Section
42-61.2-1 of the General Laws in Chapter 42-61.2 entitled “Video Lottery Terminal” is hereby amended to read as follows:

 

42-61.2-1. Definitions.
[Effective June 30, 2009] – For the purposes of this chapter, the following words shall mean:

 

(1) “Central
communication system” means a system approved by the lottery division, linking all video lottery machines at a licensee location
to provide auditing program information and any other information determined by the lottery. In addition, the central communications
system must provide all computer hardware and related software necessary for the establishment and implementation of a comprehensive
system as required by the division. The central communications licensee may provide a maximum of fifty percent (50%) of the video
lottery terminals.

 

(2) “Licensed
video lottery retailer” means a pari-mutuel licensee specifically licensed by the director subject to the approval of a division
to become a licensed video lottery retailer.

 

(3) “Net terminal
income” means currency placed into a video lottery terminal less credits redeemed for cash by players.

 

(4) “Pari-mutuel
licensee” means an entity licensed and authorized to conduct:

 

(i) Dog racing, pursuant
to chapter 3.1 of title 41; and/or

 

(ii) Jai alai games,
pursuant to chapter 7 of title 41.

 

    	 	- 5 -	 

     

    

 

(5) “Technology
provider” means any individual, partnership, corporation, or association that designs, manufacturers, installs, operates,
distributes or supplies video lottery machines or associated equipment for the sale or use in this state.

 

(6) “Video lottery
games” means lottery games played on video lottery terminals controlled by the Lottery division.

 

(7) “Video lottery
terminal” means any electronic computerized video game machine that, upon the insertion of cash, is available to play a video
game authorized by the lottery division, and which uses a video display and microprocessors in which, by chance, the player may
receive free games or credits that can be redeemed for cash. The term does not include a machine that directly dispenses coins,
cash, or tokens.

 

(8) “Casino gaming”
means any and all table and casino-style games played with cards, dice or equipment, for money, credit, or any representative of
value; including, but not limited to roulette, blackjack, big six, craps, poker, baccarat, par gov, and banking or percentage game,
or any other game or device included within the definition of Class III gaming as that term is defined in Section 2703(b) of Title
25 of the United States Code and which is approved by the state through the division of state lottery.

 

SECTION 2. Chapter
42-61.2 of the General Laws entitled “Video Lottery Terminal” is hereby amended by adding thereto the following section:

 

42-61.2-2.1. State
authorized to operate casino gaming. – (a) State-operated casino gaming shall be authorized at the facility of the licensed
video lottery terminal retailer known as “Twin River” located in the town of Lincoln; provided, that the requirements
of Article VI, Section 22 of the Rhode Island Constitution are met with respect to said facility at the general election next held
after enactment of this section.

 

    	 	- 6 -	 

     

    

 

(1) With respect to
the “Twin River” facility, the authorization of this section 2.1 shall be effective upon: (i) the certification by
the secretary of state that the qualified voters of the state have approved the expansion of gambling at such facility to include
casino gaming; and (ii) the certification by the board of canvassers of the town of Lincoln that qualified electors of the
town of Lincoln have approved the expansion of gambling at such facility to include casino gaming.

 

(b) The general assembly
finds that:

 

(1) The operation of
casino gaming at Twin River will play a critical role in the economy of the state and enhance state and local revenues;

 

(2) Pursuant to Article
VI, section 15 of the Rhode Island Constitution and the specific powers, authorities and safeguards set forth in subsection (c)
herein in connection with the operation of casino gaming, the state shall have full operational control over the specified location
at which casino gaming shall be conducted;

 

(3) It is in the best
interest of the state to have the authorization to operate casino gaming as specified at Twin River; and

 

(4) It is in the best
interest of the state to conduct an extensive analysis and evaluation of competitive casino gaming operations and thereafter for
the general assembly to enact comprehensive legislation during the 2012 legislative session to determine the terms and conditions
pursuant to which casino gaming would be operated in the state if it is authorized as set forth herein.

 

(5) Notwithstanding
the provisions of any other law and pursuant to Article VI, Section 15 of the Rhode Island Constitution, the state is authorized
to operate, conduct and control casino gaming at Twin River, subject to subsection (a) above. In furtherance thereof, the state,
through the division of state lottery and/or the department of business regulation, shall have full operational control to operate
the foregoing facility, the authority to make all decisions about all aspects of the functioning of the business enterprise, including,
without limitation, the power and authority to:

 

    	 	- 7 -	 

     

    

 

(1) Determine the number,
type, placement and arrangement of casino gaming games, tables and sites within the facility;

 

(2) Establish with
respect to casino gaming one or more systems for linking, tracking, deposit and reporting of receipts, audits, annual reports,
prohibitive conduct and other such matters determined from time to time;

 

(3) Collect all receipts
from casino gaming, require that Twin River collect casino gaming gross receipts in trust for the state through the division of
state lottery, deposit such receipts into an account or accounts of its choice, allocate such receipts according to law, and otherwise
maintain custody and control over all casino gaming receipts and funds;

 

(4) Hold and exercise
sufficient powers over Twin River’s accounting and finances to allow for adequate oversight and verification of the financial
aspects of casino gaming at the facility, including, without limitation:

 

(i) the right to require
Twin River to maintain an annual balance sheet, profit and loss statement, and any other necessary information or reports; and

 

(ii) the authority
and power to conduct periodic compliance or special or focused audits of the information or reports provided, as well as the premises
with the facility containing records of casino gaming or in which the business of Twin River’s casino gaming operations are
conducted;

 

(5) Monitor all casino
gaming operations and have the power to terminate or suspend any casino gaming activities in the event of an integrity concern
or other threat to the public trust, and in furtherance thereof, require the licensed video lottery retailer to provide a specified
area or areas from which to conduct such monitoring activities;

 

    	 	- 8 -	 

     

    

 

(6) Define and limit
the rules of play and odds of authorized casino gaming games, including, without limitation, the minimum and maximum wages for
each casino gaming game;

 

(7) Have approval rights
over matters relating to the employment of individuals to be involved, directly or indirectly, with the operation of casino gaming
at Twin River;

 

(8) Establish compulsive
gambling treatment programs;

 

(9) Promulgate, or
propose for promulgation, any legislative, interpretative and procedural rules necessary for the successful implementation, administration
and enforcement of this chapter; and

 

(10) Hold all other
powers necessary and proper to fully effectively execute and administer the provisions of this chapter for its purpose of allowing
the state to operate a casino gaming facility through a licensed video lottery retailer hosting said casino gaming on behalf of
the State of Rhode Island.

 

(d) Subject to subsection
(a) above, the state, through the division of state lottery and/or the department of business regulation may expand Twin River
existing video lottery license issued, or issue Twin River a new casino gaming license, to permit casino gaming to the extent authorized
by this act.

 

(e) Subject to subsection
(a) above, all rules and regulations shall be promulgated by the state, through the division of state lottery and the department
of business regulation, in accordance with the authority conferred upon the general assembly pursuant to Article VI, Section 15
of the Rhode Island Constitution. In accord therewith, subject to subsection (a) above, the state, through the division of state
lottery and/or the department of business regulation, shall have authority to issue such regulations as it deems appropriate pertaining
to control, operation and management of casino gaming as specifically set forth in subsections (b) and (c) herein.

 

    	 	- 9 -	 

     

    

 

SECTION 3. Nothing
in this act shall abrogate or diminish the powers of the state through the division of state lottery and/or the department of business
regulation to conduct and control video lottery terminals pursuant to chapter 42-61.2 of the general laws.

 

SECTION 4. Pursuant
to Article VI, Section 22 of the Rhode Island Constitution, the following question shall be submitted by the secretary of state
to the qualified electors of the state at the next statewide general election, and the secretary of state shall certify the election
results:

 

“Shall an act
be approved which would authorize the facility known as “Twin River” in the town of Lincoln to add state-operated casino
gaming, such as table games, to the type of gambling it offers?”

 

SECTION 5. Pursuant
to Article VI, Section 22 of the Rhode Island Constitution, the following question shall be submitted by the local board of canvassers
to the qualified electors of the town of Lincoln at the next statewide general election, and the result thereof shall be certified
to the secretary of state:

 

“Shall an act
be approved which would authorize the facility known as “Twin River” in the town of Lincoln to add state-operated casino
gaming, such as table games, to the types of gambling it offers?”

 

SECTION 6. Purpose.
The purpose of Sections 7 through 10 of this act is to help strengthen the commercial health of the Twin River facility and the
Newport Grand facility and protect for the people of Rhode Island the public’s share of revenues generated at the Twin River
and Newport Grand Facilities.

 

    	 	- 10 -	 

     

    

 

SECTION 7. Unless otherwise
amended by this Act, the terms, conditions, provisions, and definitions of Chapter 332 and 323 of the Public Laws of 2005 and Chapter
10 on the Public Laws of 2010 are hereby incorporated herein by reference and shall remain in full force and effect.

 

SECTION 8. Authorized
Procurement of Second Amendment to the Master Video Lottery Terminal Contract.

 

(a) Notwithstanding
any provision of the general or public laws or regulations adopted thereunder to the contrary, the division of state lottery is
hereby expressly authorized and empowered to enter into with Twin River and Newport Grand a Second Amendment to the Twin River
Master Contract and to the Newport Grand Master Contract for the following purposes and containing the following terms and conditions,
all of which shall be set forth in more particular detail in the Second Amendment:

 

(i) To provide that
the requirements of Part A, Section 4(a)(ii) as to Twin River and Part B, Section (4)(a)(ii) as to Newport Grand be amended to
add the following provisions thereto; the Division is authorized in addition to the Promotional Points Program established in Part
A, Section 4(a)(ii) and Part B, Section 4(a)(ii) to approve an additional amount of Promotional Points not to exceed seven hundred
fifty thousand dollars ($750,000) per facility pursuant to the same terms and conditions authorized by Chapter 10 of the Public
Laws of 2010.

 

    	 	- 11 -	 

     

    

 

(ii) To provide that
the requirements of the following subsection found in Chapter 10 of the Public Laws of 2010, Part B, Section 4(a)(iii)(2) be stricken
and removed from the First Amendment to Master Video Terminal Contract to wit; and (2) the division shall not owe any amount pursuant
to said section 4(a)(iii) in any given marketing year unless, pursuant to subsection 42-a1.2-7(a), the state has received net terminal
income for such marketing year in an amount equal to or exceeding the amount of net terminal income the state received for the
state’s fiscal year 2010. The requirements so stricken shall allow the Marketing Program and payments due thereunder to be
in effect for fiscal year 2011 pursuant to the terms and conditions set forth in said section.

 

(b) All other terms
and conditions contained in the First Amendment to Master Video Lottery Terminal Contract shall remain in full force and effect.

 

SECTION 9. Section
42-61.2-7 of the General Laws in Chapter 42-61.2 entitled “Video Lottery Terminal” is hereby amended to read as follows:

 

42-61.2-7. Division
of revenues. [Effective June 30, 2009 and expires June 30, 2011.]

 

(a) Notwithstanding
the provisions of section 42-61-15, the allocation of net terminal income derived from video lottery games is as follows:

 

(1) For deposit in
the general fund and to the state lottery division fund for administrative purposes: Net terminal income not otherwise disbursed
in accordance with subdivisions (a)(2)‒(a)(6) herein;

 

    	 	- 12 -	 

     

    

 

(i) Except for the
fiscal year ending June 30, 2008, nineteen one hundredths of one percent (0.19%) up to a maximum of twenty million dollars ($20,000,000)
shall be equally allocated to the distressed communities as defined in Section 45-13-12 provided that no eligible community shall
receive more than twenty-five percent (25%) of that community’s currently enacted municipal budget as its share under this
specific subsection. Distributions made under this specific subsection are supplemental to all other distributions made under any
portion of general laws section 45-13-12. For the fiscal year ending June 30, 2008 distributions by community shall be identical
to the distributions made in the fiscal year ending June 30, 2007 and shall be made from general appropriations. For the fiscal
year ending June 30, 2009, the total state distribution shall be the same total amount distributed in the fiscal year ending June
30, 2008 and shall be made from general appropriations. For the fiscal year ending June 30, 2010, the total state distribution
shall be the same total amount distributed in the fiscal year ending June 30, 2009 and shall be made from general appropriations,
provided however that $784,458 of the total appropriation shall be distributed equally to each qualifying distressed community.

 

(ii) Five one hundredths
of one percent (0.05%) up to a maximum of five million dollars ($5,000,000) shall be appropriated to property tax relief to fully
fund the provisions of Section 44-32-2.1. The maximum credit defined in subdivision 44-33-9(2) shall increase to the maximum amount
to the nearest five dollar ($5.00) increment within the allocation until a maximum credit of five hundred dollars ($500) is obtained.
In no event shall the exemption in any fiscal year be less than the prior fiscal year.

 

(iii) One and twenty-two
one hundredths of one percent (1.22%) to fund section 44-34.1-1, entitled “Motor Vehicle and Trailer Excise Tax Elimination
Act of 1998”, to the maximum amount to the nearest two hundred fifty dollars ($250) increment within the allocation. In no
event shall the exemption in any fiscal year be less than the prior fiscal year.

 

(iv) Except for the
fiscal year ending June 30, 2008, ten one hundredths of one percent (0.10%) to a maximum of ten million dollars ($10,000,000) for
supplemental distribution to communities not included in paragraph (a)(1)(i) above distributed proportionately on the basis of
general revenue sharing distributed for that fiscal year. For the fiscal year ending June 30, 2008 distributions by community shall
be identical to the distributions made in the fiscal year ending June 30, 2007 and shall be made from general appropriations. For
the fiscal years ending June 30, 2009, no funding shall be disbursed. For the fiscal year ending June 30, 2010 and thereafter,
funding shall be determined by appropriation.

 

    	 	- 13 -	 

     

    

 

(2) To the licensed
video lottery retailer:

 

(a)(i) Prior to the
effective date of the NGJA Master Contract, Newport Jai Alai twenty-six percent (26%) minus three hundred eighty four thousand
nine-hundred ninety-six dollars ($384,996);

 

(ii) On and after the
effective date of the NGJA Master Contract to the licensed video lottery retailer who is a party to the NGJA Master Contract, all
sums due and payable under said Master Contract minus three hundred eighty four thousand nine hundred ninety-six dollars ($384,996).

 

(b)(i) Prior to the
effective date of the UTGR Master Contract, to the present licensed video lottery retailer at Lincoln Park which is not a party
to the UTGR Master Contract, twenty-eight and eighty-five one hundredths percent (28.85%) minus seven hundred sixty-seven thousand
six hundred eighty-seven dollars ($767,687);

 

(ii) On and after the
effective date of the UTGR Master Contract, to the licensed video lottery retailer who is a party to the UTGR Master Contract all
sums due and payable under said Master Contract minus seven hundred sixty-seven thousand six hundred eighty-seven dollars ($767,687).

 

(3) To the technology
providers who are not a party to the GTECH Master Contract as set forth and referenced in Public Law 2003, Chapter 32, seven percent
(7%) of the net terminal income of the provider’s terminals; in addition thereto, technology providers who provide premium
or licensed proprietary content or those games that have unique characteristics such as 3D graphics, unique math game play features
or merchandising elements to video lottery terminals may receive incremental compensation, either in the form of a daily fee or
as an increased percentage, if all of the following criteria are met:

 

    	 	- 14 -	 

     

    

 

(A) A licensed video
lottery retailer has requested the placement of premium or licensed proprietary content at its licensed video lottery facility;

 

(B) The division of
lottery has determined in a sole discretion that the request is likely to increase net terminal income or is otherwise important
to preserve or enhance competitiveness of the licensed video lottery retailer;

 

(C) After approval
of the request by the division of lottery, the total number of premium or licensed proprietary content video lottery terminals
does not exceed ten percent (10%) of the total number of video lottery terminals authorized at the respective licensed video lottery
retailer, and

 

(D) All incremental
costs are shared between the division and the respective licensed video lottery retailer based upon their proportionate allocation
of net terminal income. The division of lottery is hereby authorized to amend agreements with the licensed video lottery retailers,
or the technology providers, as applicable, to the effect intended herein.

 

(i) To contracts who
are a party to the Master Contract as set forth and referenced in Public Laws 2003, Chapter 32, all sums due and payable under
said Master Contract;

 

(ii) Notwithstanding
paragraphs (i) and (ii) above, there shall be subtracted proportionately from the payments to technology providers the sum of six
hundred twenty-eight thousand seven hundred thirty-seven dollars ($628,737);

 

    	 	- 15 -	 

     

    

 

(4) To the city of
Newport one and one hundredth percent (1.01%) of net terminal income of authorized machines at Newport Grand except that effective
November 9, 2009, the allocation shall be one and two tenths (1.2%) of net terminal income of authorized machines at Newport Grand
for each week the facility operates video lottery games on a twenty-four (24) hour basis for all eligible hours authorized and
to the town of Lincoln one and twenty-six hundredths percent (1.26%) of net terminal income of authorized machines at Lincoln Park
except that effective November 9, 2009, the allocation shall be one and forty-five hundredths percent (1.45%) of net terminal income
of authorized machines at Lincoln Park for each week the facility operates video lottery games on a twenty-four (24) hour basis
for all eligible hours authorized;

 

(5) To the Narragansett
Indian Tribe, seventeen hundredths of one percent (0.17%) of net terminal income of authorized machines at Lincoln Park up to a
maximum of ten million dollars ($10,000,000) per year, which shall be paid to the Narragansett Indian Tribe for the account of
a Tribal Development Fund to be used for the purpose of encouraging and promoting home ownership and improvement, elderly housing,
adult vocational training, health and social services, childcare, natural resource protection, and economic development consistent
with state law. Provided, however, such distribution shall terminate upon the opening of any gaming facility in which the Narragansett
Indians are entitled to any payments or other incentives; and provided further, any monies distributed hereunder shall not be used
for or spent on previously contracted debts; and

 

(6) Unclaimed prizes
and credits shall remit to the general fund of the state;

 

(7) Payments into the
state’s general fund specified in subdivisions (a)(1) and (a)(6) shall be made on an estimated monthly basis. Payment shall
be made on the tenth day following the close of the month except for the last month when payment shall be on the last business
day.

 

    	 	- 16 -	 

     

    

 

(b) Notwithstanding
the above, the amounts payable to the Division to UTGR related to the Marketing Program shall be paid on a frequency agreed by
the Division, but no less frequently than annually.

 

(c) Notwithstanding
anything in this chapter 61.2 of this title 42 to the contrary, the Director is authorized to fund the Marketing Program as described
above in regard to the First Amendment to the UTGR Master Contract.

 

(d) Notwithstanding
the above, the amounts payable by the Division to Newport Grand related to the Marketing Program shall be paid on a frequency agreed
by the Division, but no less frequently than annually.

 

(e) Notwithstanding
anything in this chapter 61.2 of this title 42 to the contrary, the Director is authorized to fund the Marketing Program as described
above in regard to the First Amendment to the Newport Grand Master Contract.

 

42-61.2-7. Division
of revenue. [Effective June 30, 2011.] – (a) Notwithstanding the provisions of section 42-61-15, the allocation of
net terminal income derived from video lottery games is as follows:

 

(1) For deposit in
the general fund and to the state lottery division fund for administrative purposes: Net terminal income not otherwise disbursed
in accordance with subdivisions (a)(2) – (a)(6) herein:

 

    	 	- 17 -	 

     

    

 

(i) Except for the
fiscal year ending June 30, 2008, nineteen one hundredths of one percent (0.19%) up to a maximum of twenty million dollars ($20,000,000)
shall be equally allocated to the distressed communities as defined in section 45-13-12 provided that no eligible community shall
receive more than twenty-five percent (25%) of that community’s currently enacted municipal budget as its share under this
specific subsection. Distributions made under this specific subsection are supplemental to all other distributions made under any
portion of general laws section 15-13-12. For fiscal year ending June 30, 2008 distributions by community shall be identical to
the distributions made in the fiscal year ending June 30, 2007 and shall be made from general appropriations. For the fiscal year
ending June 30, 2009, the total state distribution shall be the same total amount distributed in the fiscal year ending June 30,
2008 and shall be made from general appropriations. For the fiscal year ending June 30, 2010, the total state distribution shall
be the same total amount distributed in the fiscal year ending June 30, 2009 and shall be made from general appropriation, provided
however that $784,458 of the total appropriation shall be distributed equally to each qualifying distressed community.

 

(ii) Five one hundredths
of one percent (0.05%) up to a maximum of five million dollars ($5,000,000) shall be appropriated to property tax relief to fully
fund the provisions of section 44-33-2.1. The maximum credit defined in subdivision 44-33-9(2) shall increase to the maximum amount
to the nearest five dollar ($5.00) increment within the allocation until a maximum credit of five hundred dollars ($500) is obtained.
In no event shall the exemption in any fiscal year be less than the prior fiscal year.

 

(iii) One and twenty-two
one hundredths of one percent (1.22%) to fund section 44-34.1-1 entitled “Motor Vehicle and Trailer Excise Tax Elimination
Act of 1998” to the maximum amount to the nearest two hundred fifty dollar ($250) increment within the allocation. In no
event shall the exemption in any fiscal year be less than the prior fiscal year.

 

(iv) Except for the
fiscal year ending June 30, 2008, ten one hundredths of one percent (0.10%) to a maximum of ten million dollars ($10,000,000) for
supplemental distribution to communities not included in paragraph (a)(1)(i) above distributed proportionately on the basis of
general revenue sharing distributed for that fiscal year. For the fiscal year ending June 30, 2008, distributions by community
shall be identical to the distributions made in the fiscal year ending June 30, 2007 and shall be made from general appropriations.
For the fiscal year ending June 30, 2009, no funding shall be disbursed. For the fiscal year ending June 30, 2010 and thereafter,
funding shall be determined by appropriation.

 

    	 	- 18 -	 

     

    

 

(2) To the licensed
video lottery retailer:

 

(a)(i) Prior to the
effective date of the NGJA Master Contract, Newport Jai Alai twenty-six percent (26%) minus three hundred eighty four thousand
nine hundred ninety-six dollars ($384,996);

 

(ii) On and after the
effective date of the NGJA Master Contract, to the licensed video lottery retailer who is a party to the NGJA Master Contract,
all sums due and payable under said Master Contract minus three hundred eighty four thousand nine hundred ninety-six dollars ($384,996).

 

(b)(i) Prior to the
effective date of the UTGR Master Contract, to the present licensed video lottery retailer at Lincoln Park which is not a party
to the UTGR Master Contract, twenty-eight and eighty-five one hundredths percent (28.85%) minus seven hundred sixty-seven thousand
six hundred eighty seven dollars ($767,687).

 

(ii) On and after the
effective date of the UTGR Master Contract, to the licensed video lottery retailer who is a party to the UTGR Master Contract,
all sums due and payable under said Master Contract minus seven hundred sixty-seven thousand six hundred eighty-seven dollars ($767,687).

 

(3)(i) To the technology
providers who are not a party to the GTECH Master Contract as set forth and referenced in Public Law 2003, Chapter 32, seven percent
(7%) of the net terminal income of the provider’s terminals; in addition thereto, technology providers who provide premium
of licensed proprietary content or those games that unique characteristics such as 3D graphics, unique math game play features
or merchandising elements to video lottery terminals may receive incremental compensation either in the form of a daily fee or
as an increased percentage, if all of the following criteria are met:

 

    	 	- 19 -	 

     

    

 

(A) A licensed video
lottery retailer has requested the placement of premium or licensed proprietary content at his licensed video lottery facility;

 

(B) The division of
lottery has determined in its sole discretion that the request is likely to increase net terminal income or is otherwise important
to preserve or enhance the competitiveness of the licensed video lottery retailer;

 

(C) After approval
of the request by the division of the lottery, the total number of premium or licensed proprietary content video lottery terminals
does not exceed ten percent (10%) of the total number of video lottery terminals authorized at the respective licensed video lottery
retailer; and

 

(D) All incremental
costs are shared between the division and the respective licensed video lottery retailer based upon their proportionate allocation
of net terminal income. The division of lottery is hereby authorized to amend agreements with the licensed video lottery retailers
or the technology providers, as applicable, to effect the intent herein.

 

(ii) To contracts who
are a party to the Master Contract as set forth and referenced in Public Law 2003, Chapter 32, all sums due and payable under said
Master Contract.

 

(iii) Notwithstanding
paragraphs (i) and (ii) above, there shall be subtracted proportionately from the payments to technology providers the sum of six
hundred twenty-eight thousand seven hundred thirty-seven dollars ($628,737);

 

    	 	- 20 -	 

     

    

 

(4) To the city of
Newport one and one hundredth percent (1.01%) of net terminal income of authorized machines at Newport Grand except that effective
November 9, 2009 until June 30, 2012, the allocation shall be one and two tenths percent (1.2%) of net terminal income of authorized
machines at Newport Grand for each week the facility operates video lottery games on a twenty-four (24) hour basis for all eligible
hours authorized and to the town of Lincoln one and twenty-six hundredths percent (1.26%) of net terminal income of authorized
machines at Lincoln Park except that effective November 9, 2009 until June 30, 2012, the allocation shall be one and forty-five
hundredths percent (1.45%) of net terminal income of authorized machines at Lincoln Park for each week the facility operates video
lottery games on a twenty-four (24) hour basis for all eligible hours authorized; and

 

(5) To the Narragansett
Indian Tribe, seventeen hundredths of one percent (0.17%) of net terminal income of authorized machines at Lincoln Park up to a
maximum of ten million dollars ($10,000,000) per year, which shall be paid to the Narragansett Indian Tribe for the account of
a Tribal Development Fund to be used for the purposes of encouraging and promoting: home ownership and improvement, elderly housing,
adult vocational training, health and social services, childcare, natural resource protection, and economic development consistent
with state law. Provided, however, such distribution shall terminate upon the opening of any gaming facility in which Narragansett
Indians are entitled to any payments or other incentives; and provided further, any monies distributed hereunder shall not be used
for, or spent on previously contracted debts, and

 

    	 	- 21 -	 

     

    

 

(6) Unclaimed prizes
and credits shall remit to the general fund of the state; and

 

(7) Payments into the
state’s general fund specified in subdivisions (a)(1) and (a)(6) shall be made on an estimated monthly basis. Payment shall
be made on the tenth day following the close of the month except for the last month when payment shall be on the last business
day.

 

(b) Notwithstanding
the above, the amounts payable by the Division to UTGR related to the Marketing Program shall be paid on a frequency agreed by
the Division, but no less frequently than annually.

 

(c) Notwithstanding
anything in this chapter 61.2 of this title 42 to the contrary, the Director is authorized to fund the Marketing Program as described
above in regard to the First Amendment to the UTGR Master Contract.

 

(d) Notwithstanding
the above, the amounts payable by the Division to Newport Grand related to the Marketing Program shall be paid on a frequency agreed
by the Division, but no less frequently than annually.

 

(e) Notwithstanding
anything in this chapter 61.2 of this title 42 to the contrary, the Director is authorized to find the Marketing Program as described
above in regard to the First Amendment to the Newport Grand Master Contract.

 

SECTION 11. This Article
shall take effect upon passage.

 

    	 	- 22 -

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