Document:

Exhibit
10.5

 

THIRD
AMENDED AND RESTATED

GAMING MANAGEMENT AGREEMENT

 

THIS
AGREEMENT, made and entered into this 16 day of June,
1995, at Concho, Oklahoma, by and between THE
CHEYENNE AND ARAPAHO TRIBES OF OKLAHOMA, a federally recognized
Indian Tribe organized pursuant to Section 3 of the Act of June 26, 1936 (49
Stat. 1967) by and through its duly elected Tribal Chairman, Charles Surveyor
(hereinafter referred to as “Tribe”), and SOUTHWEST
CASINO AND HOTEL CORP. (formerly Southwest Casino and Hotel Ventures,
Inc.), a Minnesota corporation with its principal place of business located in
Minneapolis, Minnesota (hereinafter referred to as “Manager”).

 

W I T
N E S S E T H

 

WHEREAS,
Tribe desires to become involved with Manager in the operation of a Class II gaming
facility at a location described on Exhibit A hereto; and

 

WHEREAS,
Tribe is committed to the use of gaming activities as a primary means of
economic development and financial support of Tribe’s budget for tribal
programs and essential governmental services; and

 

WHEREAS,
Tribe desires to contract for the management services of Manager, in order to
assure that the proposed gaming facility is well managed, marketed and
sufficiently funded for all initial costs of construction, rehabilitation,
equipping, staffing and training of all employees; and

 

WHEREAS,
Manager agrees to secure monies to fund the project and assist the Tribe in
obtaining the capital investment necessary to the development of such facility
or facilities, and the management experience necessary to the conducting of
successful Tribal gaming operations pursuant to the terms and conditions more
fully set forth hereinafter; and

 

 

WHEREAS,
Tribe and Manager entered into a Gaming Management Agreement on January 5,
1993, and desire to amend this Agreement to comply with regulations adopted
under the Act defined herein; and

 

WHEREAS,
Tribe and Manager hereby amend and fully restate their understanding in this
Third Amended and Restated Gaming Management Agreement;

 

IT
IS THEREFORE AGREED by the parties hereto, that Tribe offers
to hire Manager, and Manager agrees to accept Tribe’s offer and to be employed
as contract manager to manage Tribe’s Class II gaming facilities under the
terms and conditions and for the consideration more fully described
hereinbelow.

 

ARTICLE I

DEFINITIONS

 

As used in this
Agreement, the following terms shall have the respective meanings ascribed
thereto below:

 

1.1           “Business Committee”
shall mean the legislative body established under the laws of the Tribe with
jurisdiction to oversee the Enterprise on behalf of the Tribe, and to contract
for the construction and operation of any enterprise, including the Enterprise
that is contemplated herein.

 

1.2           “CPA” shall mean
an accounting-firm of regional or national recognition selected by Tribal
Representative.

 

1.3           “Business
Corporation” shall mean the Cheyenne and Arapaho Business Development
Corporation, an enterprise subsidiary of the Tribe to which this Agreement
shall be assigned, and through which the Tribe shall engage in the business of
the Enterprise.

 

1.4           The “Enterprise”
is a commercial enterprise of the Tribe authorized to engage in (a) gaming
of every variety defined as Class II Gaming by the Act (as defined below); and

 

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(b) any other
lawful commercial activity allowed on the Property.  The Tribe shall have the sole proprietary
interest in and responsibility for the conduct of all Gaming Operations (as
defined below) conducted by the Enterprise, subject to the rights and
responsibilities of the Manager under this Agreement.

 

1.5           “Gaming Operation”
or “Gaming” means the economic entity that is licensed by the Tribe,
operates the games, receives the revenues, issues the prizes, and pays the
expenses.

 

1.6           “Gaming Facility”
or “Facility” means the building and grounds, including any parking
areas and drives used for ingress and egress and connecting the “Facility” to
the city, county or state roads and highways. 
“Facility” includes any and all buildings and improvements located or
constructed on the premises, and references authority and control over all
business activities conducted within such improvements or upon the subject
premises or in any way related or connected thereto.

 

1.7           “Gaming Related
Operating Expenses” shall mean those expenses, (excluding Management Fees),
calculated in accordance with generally accepted accounting principles (GAAP),
necessary for the Gaming Operation, including the following: (1) repayment of
interest thereon for loans -provided or secured by or with the assistance of
Manager to the Tribe pursuant to this Agreement; (2) the payment of salaries,
wages, benefit programs, and training for employees of the Gaming Operation,
including Manager’s Representative defined in Section 3.2 A hereof, and
contract labor or services retained on behalf of the Gaming Operation;
(3) materials and supplies for the Gaming Operation; (4) utilities; (5)
the cost of fire protection, emergency medical services and law enforcement;
(6) interest on installment contract purchases or lease-type financing by the
Gaming Operation; (7) insurance and bonding; (8) advertising and marketing,
including busing and transportation of employees and/or customers to the
Facility and

 

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including such
portion of any loss realized from non-gaming operations determined by Manager
and Tribe to be a proper allocation to the marketing budget; (9) fees, costs,
dues and contributions associated with Tribal and Gaming Operation membership
and participation in trade associations, political action associations and
related associations; (10) security costs and background checks of employees of
the Gaming Operation; (11) reasonable travel expenses for officers of the
Manager to inspect and oversee the Gaming Operation, and for the Chairman of
the Tribe and members of the Business Committee and key employees of Tribe when
such travel is reasonably related to the Gaming Operation, subject to the
budget agreed upon by the Manager and the Business Committee; (12) trash
removal; (13) costs of goods sold; (14) other expenses designated as Operating
Expenses in the annual budget of the Gaming Operation as approved by the
Business Committee and Manager; (15) professional fees and expenses, including legal
and accounting fees incurred on behalf of the Gaming Operation; (16) National
Indian Gaming Commission fees; (17) amortization of start up expenses; (18) any
federal, state or Tribal taxes or assessments which are properly assessed
against the Gaming Operation; and (19) reasonable accruals established by
Manager after consultation with Tribe to provide for future payment of
operating expenses and jackpot type prizes.

 

1.8           “General Contractor”
shall mean Kraus-Anderson Construction Company or such other person or entity
recommended by Manager and selected by the Tribal Representative, on behalf of
the Tribe, acceptable to Manager, who is a licensed general contractor,
experienced in the construction of commercial buildings and appurtenant
structures and service facilities, and is capable of furnishing a performance
and payment bond of not less than THREE MILLION DOLLARS ($3,000,000.00).

 

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1.9           “General Manager”
shall mean the person selected by Manager and approved by the Tribal
Representative, who is experienced in the operation, maintenance and accounting
for a Gaming Operation.  Such General
Manager shall be employed by the Manager and shall be the person responsible
for and with the necessary authority for carrying out the duties and
responsibilities of Manager as set forth herein in connection with the
operation of the Facility.  The General
Manager shall be engaged during the term of this Agreement.

 

1.10         “Management Agreement”
shall mean this Agreement.

 

1.11         “Net Revenues”
shall mean gross gaming revenues of the Gaming Operations less (a) amounts paid
out as, or paid for, prizes; and (b) total Gaming-Related Operating Expenses,
excluding management fees.

 

1.12         “Non-Gaming Net
Revenues” shall mean gross revenues from all non-gaming sources, including
without limitation, restaurant, food service and gift shop activities, less
total non-gaming related operating expenses calculated in accordance with
generally accepted accounting principles (GAAP).

 

1.13         “Project Approval”
means approval of this Gaming Management Agreement and authorization by Manager
to conduct Class II Gaming (as defined in the Act) by the Chairman of the
National Indian Gaming Commission (“NIGC”).

 

1.14         “Project” means
the Gaming Facility developed and constructed by Manager for the conduct of
Gaming Operations defined as “Class II Gaming” in Section 2703, Subsection 7(A}
of the Act.

 

1.15         THIS SECTION
INTENTIONALLY LEFT BLANK.

 

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1.16         “Property” shall
mean a parcel of land, more particularly described in Exhibit A attached as a
part hereof, on which the Business Committee, on behalf of the Tribe, will
build the Facility, which parcel is held by the United States in trust for the
Tribe.

 

1.17         “Start-up Expenses”
shall mean all expenses necessary to prepare for the commencement of Gaming
incurred which are not otherwise Operating Expenses incurred under Section 1.6
of this Agreement.  Start-up Expenses
shall include costs to the Business Committee, on behalf of the Tribe as set
forth in Section 2.2 A hereof, and the cost to Manager for legal and other
professional fees incurred on behalf of the Gaming Operation with the specific
approval of the Manager, which approval shall not be unreasonably withheld,
incurred for purposes of entering into or obtaining approval of this
Agreement.  Start-up Expenses also shall
include, but not be limited to, necessary salaries, consulting fees, employee
background checks and training, marketing expenses, supplies, inventories,
uniforms, utility costs, travel and similar expenses necessary to prepare for
the commencement of Gaming, together with such other expenses incurred with the
approval of the Tribal Representative and Manager.

 

1.18         “Tribal Land”
means any property which may in the future, or which presently fits within the
definition of “Indian Land” at Concho, Oklahoma, for purposes of establishing
tribal or federal jurisdiction and regulatory authority over gaming activities.

 

1.19         “Tribe” means The
Cheyenne and Arapaho Tribes of Oklahoma, acting by and through its then
designated Business Committee.

 

1.20         “Tribal Representative”
shall mean the person appointed in accordance with this Agreement by the
Business Committee.

 

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1.21         “Tribal Gaming Board”
shall mean the body of the Tribe authorized to regulate the Gaming Operation
pursuant to the Cheyenne-Arapaho Tribes of Oklahoma Gaming Ordinance adopted
April 3, 1993.

 

ARTICLE II

EMPLOYMENT OF MANAGER

 

2.1           General
Responsibilities of Manager.  Tribe
hereby retains and engages Manager commencing as of the Effective Date (as
defined in Section 19.8 hereof). 
Manager’s responsibilities include assisting Tribe with the obtaining or
selection of desirable locations and facilities for the conducting of Class II
and other desired gaming by Tribe both within and outside the Tribe’s last
reservation boundary, including the funds needed for any necessary
construction, remodeling, equipping of the facility with gaming equipment and
machinery, staffing, staff training, marketing and promotion and to fund an
initial house bank sufficient to begin operation and safely cover all initial
wagers and payouts.  Manager shall
establish an adequate advertising and marketing budget and shall place all
necessary advertising.  Manager shall
thereafter have the exclusive right to manage said Gaming Facility on behalf of
Tribe in compliance with (i) the terms of this Agreement; (ii) in accordance
with the Act or other applicable Tribal and/or Federal law; and (iii) in
accordance with the Cheyenne-Arapaho Gaming Ordinance.  Manager shall maintain and provide food and
beverage services for patrons of the Facility. 
Such food and beverage services shall be maintained and accounted for
separately.  Manager shall promptly pay
all bills of the Gaming Operation when they become due with funds of the Gaming
Operation.  Manager, after consultation
with the Tribal Representative, shall establish a schedule during which the
Facility shall be open for business. 
Manager shall use actual market experience after opening to ascertain
whether the schedule needs to be modified after taking into consideration the
cost of operation during any given period

 

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and the revenues
to be expected during that same period. 
Additionally, the Manager shall be responsible, if applicable, to supply
NIGC with all information necessary for the Commission to comply with the
regulations of the Commission issued pursuant to the National Environmental
Policy Act (“NEPA”).  This Agreement
shall not transfer or, in any other manner, convey any interest in land or
other real property.

 

2.2

 

A.            Manager’s Role in
Negotiating Tribal Compact.  Manager
will provide, on behalf of the Tribe, legal counsel of Tribe’s choice to work
with the Tribe at a cost not to exceed Seventy-Six Thousand and No/100 Dollars
($76,000.00) in negotiating this Management Agreement and related documents and
a Tribal compact with the State of Oklahoma or other appropriate governmental
body.  Manager shall participate in such
negotiations at its sole cost.  All such
participation shall be under the supervision of legal counsel to the Tribe and
the Tribal Representative.  The funds
advanced shall be Start-up Expenses.  In
addition, Manager shall pay all reasonable costs incurred by the Business
Committee in doing due diligence, including one trip to Minneapolis,
Minnesota.  The cost of the due diligence
trip to Minnesota shall be paid by Manager and shall not be a Start-up Expense
or an Operating Expense, and shall not be included in the loan from Manager.

 

B.            Construction of
Facility.  Following the Effective
Date of this Agreement, the Business Committee, on behalf of the Tribe, shall
undertake all steps necessary to construct the Facility, including, without
limitation, the following:

 

1.             Architect,
Engineering and Design.  The Manager
shall retain the architectural firm of Korsunsky Krank Erickson Architects,
Inc. and the civil engineering firm of Fox & Drechsler, Inc. to design the
Facility, including the water and sewage

 

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facilities and site
development; provided that the design, construction and maintenance of such
facilities and site shall meet or exceed all reasonable minimum standards which
would be imposed on such facilities by existing State or Federal statute or
regulation which would be applicable if the Facility were located outside of
the territorial boundaries of the Tribe, although those requirements would not
otherwise apply within those territorial boundaries subject to such lesser
standards as may be approved by the Tribal Representative; provided further,
that nothing in this subsection shall grant any jurisdiction over the Property
or its development and management to the State of Oklahoma or any political
subdivision thereof.  Design of the
Project shall commence immediately.  The
General Contractor employed by the Tribe shall be responsible for building the
Facility in accordance with the plans and specifications and for providing all
materials, equipment and labor to construct and initially equip the Gaming
Operation as necessary, including site development, and for supervising the
construction, renovation or modification of the Facility so as to comply with
the terms of any loan agreement to be executed. 
The design and construction of the Facility will adequately protect the
environment and the public health and safety.

 

2.             Supervision and
Construction.  The architect shall
have the responsibility to supervise the completion of all the construction,
development, improvements and related activities undertaken pursuant to the
terms and conditions of the contract with the General Contractor.  The Tribe has retained the firm of McKinney
Partnership as inspecting architect to approve the plans and inspect the
Facility during construction, provided that the inspecting architect’s fee
shall not exceed Fourteen Thousand and No/100 Dollars ($14,000.00).  Manager shall loan to the Business

 

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Corporation a sum not to
exceed Five Million Eight Hundred Thousand and No/100 Dollars ($5,800,000.00)
to build, equip and operate the Facility. 
Such loan shall bear interest at the rate of 9.25% per annum and shall
be amortized over seven (7) years.  Any
balance remaining shall be due and payable on or before May 31, 2001
(seven (7) years from commencement of operation).  Out of such loan proceeds, Manager shall
provide all funds necessary for such architectural and engineering services and
construction.

 

3.             Construction
Commencement and Completion.  The
contract with the General Contractor shall contain such provisions for the
protection of the Tribe as it shall deem appropriate, and shall provide that
construction of the Facility shall commence within ninety (90) days following
the later of the Project Approval and the granting of all approvals necessary
to commence construction, and shall also provide that the General Contractor
shall exert its best efforts to complete construction within ten (10) months
after commencement of construction.  The
General Contractor shall warrant the construction to be free of defects and
unworkmanlike labor for a reasonable period to be agreed upon by Manager,
Tribal Representative and General Contractor. 
The Manager is authorized to sign the contract with the General
Contractor and all necessary subcontractors, and to make provision for periodic
payments during construction.

 

C.            Fire and Safety.  The Facility on the Property shall be constructed
and maintained in compliance with all fire and safety statutes, ordinances and
regulations which would be applicable if the Facility was located outside of
the exterior boundaries of the territory of the Tribe, although those
requirements would not otherwise apply on that territory; provided, that
nothing in this subsection shall grant any jurisdiction to the State of
Oklahoma or any political subdivision thereof over the Property.  Law enforcement shall be provided by Tribe.

 

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Fire protection
and emergency medical services shall be provided by Tribe, either directly or
pursuant to an intergovernmental agreement secured by the Tribe.  The reasonable cost of such services shall be
borne by the Gaming Operation.

 

D.            Equipment,
Furniture and Furnishings Acquisition and Cost.  Manager shall provide necessary bingo and
other Gaming equipment, furniture and furnishings, with the approval of the
Tribe, and Manager agrees to loan to the Tribe the funds therefor on the terms
set forth herein for the purchase of such equipment for the Project, provided
that the Manager may expressly agree that some or all of such equipment may be
leased or financed with financing secured by Manager for the Tribe.  In such event, the costs of such Lease(s)
(whether a financing or capital lease) or such financing shall be an Operating
Expense of the Gaming Operation.

 

E.             Working Capital.  Upon completion of construction, Manager
agrees to provide to the Tribe a sum not to exceed One Hundred Thousand and
No/100 Dollars ($100,000.00) for the eventual use as Working Capital in the
operation of the Gaming Operation (the “Working Capital”); provided however,
when such sum is not needed, in the judgment of the Tribal Representative, it shall
be returned to Manager and credited to the principal due under the note.  Any amounts provided by Manager to the Tribe
for Working Capital under this Section shall be payable and shall accrue
interest at the rate set forth in the note, subject to the limitations
contained in the note.

 

F.             Damage or
Impossibility of the Gaming Operation. 
If, during the term of this Agreement, the Facility is damaged or
destroyed by fire, war, or other casualty, or by an Act of God, and such damage
was not the result of an intentional act of the Manager (any such occurrence
being referred to herein as a “Casualty”), or if Gaming on the Property is
prohibited as a result of a decision of a court of competent jurisdiction, or
by operation of any applicable

 

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legislation (any
such prohibition being referred to herein as a “Legal Prohibition”), Manager
shall have the following options:

 

1.             Maintenance of the
Facility.  In the event of a Legal
Prohibition, Manager shall have the option to continue its interest in this
Agreement and to commence or recommence the operation of Gaming at the Facility
at any time prior to the date eighteen (18) months after the effective date of
the Legal Prohibition if at some point during such eighteen (18) month period
such commencement or recommencement shall be legally and commercially feasible
in the sole judgment of Manager.

 

2.             Repair or
Replacement Option.  In the event of
a Casualty, Manager may, in its sole discretion, within one hundred eighty
(180) days after the date of the Casualty, undertake to reconstruct the
Facility to a condition where Gaming can once again be conducted at the
Facility.  If Manager undertakes to
reconstruct the Facility and if the insurance proceeds are insufficient to
reconstruct the Facility to a condition where Gaming can once again be
conducted at the Facility, Manager shall supply such funds necessary to
reconstruct the Facility to such condition and shall have the sole right to
adjust and settle any and all claims for such insurance proceeds.  Should Manager use any funds of Manager
beyond those provided by insurance proceeds, such funds shall be considered a
loan to the Tribe and, consequently, shall become part of the repayment
obligation of the Tribe to Manager; provided, however, that Tribe must consent
in writing to any additional Joan and in no event shall the total amount loaned
to the Business Corporation exceed 55.8 million without the written consent of
the Tribe.  If the insurance proceeds are
not used to repair the Facility, the Business Committee, on behalf of the
Tribe, shall have the sole right to adjust and settle any and all claims for
such

 

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insurance proceeds, and
such proceeds shall be applied (i) to the amounts due under the Note
(including principal and interest); (ii) to pay any undistributed Net Revenues
pursuant to this Agreement; and (iii) any surplus shall be distributed to the
Tribe.  In either event, Manager may
elect to terminate this Agreement

 

3.             Recommencement of
Gaming.  After the Management
Agreement has commenced, if after a period of cessation of Gaming on the
Property the recommencement of Gaming is possible, and if Manager or Tribe has
not terminated the Management Agreement under the provisions of this Agreement,
and the provisions of the Management Agreement shall also recommence and the
period of such cessation shall not be deemed to have been part of the term of
the Management Agreement and the date of expiration of the term of the
Management Agreement shall be extended by the number of days of such cessation
period.  Any reasonable payments made to
any third party to eliminate rights acquired in the Property, Facility or
Gaming Operation during the period of cessation shall be deemed an Operating
Expense of the Gaming Operation.

 

4.             Alcoholic
Beverages and Tobacco Sales.  During
the term of this Agreement, no alcoholic beverages shall be served on the
Property, unless the Business Committee, on behalf of the Tribe, and Manager
mutually agree to the serving of such beverages, and unless the serving of such
beverage is otherwise in accordance with applicable law.  Tobacco may be sold at the Gaming Operation
by the Tribe if such sale is in accordance with the provisions of applicable
law and with any agreements between the Tribe and any agency thereof and any
other governmental entity.  The revenues
of any such tobacco sales shall be revenues of the Tribe, exclusively.  The operation and all

 

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employees shall be under
the direction of the Tribe; however, such employees shall meet the standards
imposed by Manager on other employees of the Gaming Operation.

 

G.            Security Force.  Manager shall be responsible for providing a
security force sufficient to reasonably assure the safety of the customers,
personnel, monies, and property of the Gaming Operation.  Such security force shall be comprised of
security officers employed directly by the Tribe, or provided under a contract
with a third party and the Tribe, who shall report directly to the Manager, and
each security officer shall be bonded in sufficient amounts commensurate with
their enforcement duties and obligations. 
The cost of such security force shall be included in the Operating
Expenses of the Gaming Operation.

 

H.            Transportation.  Manager shall provide transportation to
Concho, Oklahoma from the western regions of the Tribe to western Tribal
members so that such members who do not have accessible daily transportation
may be employed at the Facility during both construction of the Project and
after opening the Facility.  Such
transportation shall consist of two step-van type vehicles, accommodating at
least nine passengers each.  The cost of
leasing and operating the vehicles shall be an expense of the Gaming
Operation.  Prior to commencement of
operations, the cost of leasing and operating the vehicles shall be a Start-up
Expense and shall be loaned to the Tribes by Manager.

 

2.3           Responsibilities of
the Tribe.  Tribe agrees to assist
Manager (i) by gaining timely Project Approval of this contract by NIGC;
(ii) by using its best efforts to secure a BIA Joan or loan guaranty in
the maximum amount obtainable; (iii) by timely obtaining a Class III
Gaming Compact with the State of Oklahoma or such other appropriate
governmental bodies by which Tribe can legally operate a full and satisfactory
range of games in” order to enhance the financial benefits of the Facilities to
Tribe and Manager and to insure the financial feasibility of the

 

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proposed projects;
(iv) by using its best efforts to cause sewer, water and electricity,
adequate for the Project to be extended to the site at no cost to Manager or
Gaming Operation; and (v) by timely promulgating appropriate Tribal gaming
laws and regulations by which Manager can be guided and by which Tribe will
exercise the required Tribal control and regulatory authority over its gaming
industry.  Other than the existing sales
tax on certain gift shop items and the Entertainment Tax of 51.00 ( contained
in Chapter 5 of the Tribe’s General Revenue and Taxation Act of 1988, as
amended on October 5, 1991), Tribe agrees to refrain from the promulgating or
enforcing of laws or the assessing or collecting of taxes on the operation of
the Gaming Facility or Manager, including all profit centers and activities
therein which, in the judgment of Manager, might serve to reduce the benefits
of this agreement to Manager during the term of this agreement, and in the
event any such law or assessment exists or is duly promulgated, Tribe, by this
agreement, exempts the Gaming and related business activities of this Facility
therefrom for the term of this agreement and waives payment and enforcement of
same.  Any such change of law or
regulation will be applicable to the subject facility during the term of this
agreement only with the written consent of Manager.  In the event the Tribe imposes a tax, fee or
other charge in contravention of this Section, the Tribe shall be obligated to
reimburse Manager within seventy-two (72) hours.  If the Tribe fails to reimburse Manager
within seventy-two (72) hours, Manager shall be entitled to deduct the amount
of the required reimbursement from the Tribe’s share of Net Revenues otherwise
distributable under Section 6.1 of this Agreement.

 

2.4           Term of Agreement.  This agreement shall be for a term of seven
(7) years from the date of the first day said Facility is opened for
business.  In the event a compact
permitting Class III Gaming is properly secured, it is the intention of the
parties hereto to negotiate in good

 

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faith to cause the
term of this Agreement to be extended and expanded to permit the development of
Class III facilities.  Tribe agrees that
it will use its best efforts to seek appropriate approvals from NIGC for such
extensions and expansion.  In the event
such approval is not obtained, Manager shall have no obligation to proceed with
the expansion of the facilities.

 

ARTICLE III

EMPLOYEES AND OPERATIONS

 

3.1           Personnel.  All employees of the Gaming Facility (other
than the General Manager) shall be considered employees of the Gaming
Enterprise assigned to said Tribal Gaming Facility under the authority and
supervision of Manager.  Subject to the
provisions of Section 3.1 (D), all responsibility for employment decisions,
including, but not limited to, the hiring, firing, promotion, transfer,
compensation and discipline of said employees shall, however, be the sole
responsibility of Manager, who shall make such decisions in accordance with the
rules, regulations, policies and procedures and prudent employment practices
established by Manager and reasonably approved by Tribe for use in the
operation of the Gaming Facility.  Tribe
agrees not to attempt to influence employment decisions based on political or
family relationships.

 

A.            Tribal Hiring
Preference.  The parties to this
agreement have agreed that preference will be given to qualified Tribal members
for all available and vacant positions of employment with the Gaming
Facility.  Next preference will be given
to Native American persons who are not Tribal members.  Final determination of the qualifications of
Tribal members and all other employees for employment shall be made by Manager.

 

B.            Hiring Process.  Tribe shall maintain a file of current
applications of Tribal members who desire to be considered for employment with
the Gaming Facility.  At such time as a
vacancy or opening occurs or is anticipated to occur by Manager, Manager will
request

 

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such applications
be delivered by Tribe for consideration. 
If no qualified applicants are available, and Manager does not have
sufficient time to train before placing the new hire in the position, then
Manager may at Manager’s discretion choose to hire a non-Tribal member of
Manager’s choice.  The parties agree that
adequate education and experience are an absolute requirement for placement in
many management and supervisory positions that will be required for the
operation of this Gaming Facility.  In
addition, specific training and experience will be required for persons
selected to fill other non-management positions.  Every reasonable effort will be made to place
Cheyenne and Arapaho tribal members in middle level .and top level managerial
positions.  The management shall be
prepared to give clear explanations upon request of Tribe as to the finding
that tribal members who otherwise meet the minimum standards for employment are
not hired.  Manager will establish such
training activities as may be necessary to maintain an adequately skilled work
force for the facility once operation has begun.  However, due to the large number of employees
that will be required to begin operation of the Facility, and the limited time
that will be available for training of the work force, the preference in
employment will be waived for staffing during the initial stages of the
commencement of operations.  It is
expected that many of these positions will be filled by persons recruited from
present or recent employment with other gaming facilities, both Indian and
non-Indian.

 

C.            Emergency Hiring.  Manager may, at its discretion, declare any
key position that becomes vacant to be an emergency vacancy for immediate
employment of any person who Manager deems to be competent in education,
training and/or skills required to satisfactorily perform in the subject
position.  Any such position must be one
which in Manager’s opinion or judgment an extended vacancy would cause
substantial loss of revenue,

 

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quality of
service, or otherwise jeopardize the level of performance and thus the
reputation of the Facility.

 

D.            Security Clearance
and Background Reviews.  Tribe shall
conduct such adequate background review as is necessary and appropriate to the
position to be filled and the responsibilities of such position within the
Facility.  Any such review shall be
sufficient to meet the requirements of the Act and regulations promulgated
thereunder, where applicable, the tribal compact, if any, and such reasonable
regulations as may be promulgated by the Tribe. 
The background investigation procedures employed by the Tribe shall be
formulated in consultation with Manager and shall satisfy all regulatory
requirements.  The cost of such reviews,
and regulation of the Gaming Enterprise shall be paid by Tribe out of the
Entertainment Tax referred to in Section 2.3 hereof, and Manager shall
cooperate and assist Tribe where necessary in obtaining such information as is
necessary to adequately carry out this task. 
In the event that Tribe does not approve the hiring of any person, that
person shall not be employed by Manager at the Gaming Operation.

 

3.2           Manager’s
Representative.  Manager shall
appoint and hire as its representative on site the General Manager who shall
serve in the capacity generally described below:

 

A.            General Manager
of the Facility with primary authority over all other employees, and who will
make, or delegate to an appropriate staff-member responsibility and authority
for the making of all day-to-day business decisions required at the
Facility.  The General Manager shall have
ultimate authority over such delegated tasks and shall adequately supervise and
monitor same to secure the successful exercise of such authority by his staff.

 

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B.            Tribal Coordinator.  Tribe, through and by its Business Committee
shall select and employ a person to serve as Tribal Coordinator who shall serve
at the pleasure of the Tribe Tribal Coordinator shall be paid by the Gaming
Operation at a salary of $30,000 per year.

 

C.            Compensation of
General Manager and Tribal Coordinator. 
The positions as described in paragraphs 3.2 A. and 3.2 B. hereof, as
with all other employment positions within the Gaming Facility, shall provide
compensation by salary, pay scale and other appropriate and desirable
compensation and benefits as are appropriate to the responsibilities of such
position, and that is competitive in the gaming and recreation industry.  In the event that the originally appointed
persons shall not be able, or shall hereafter choose not to serve in these
capacities, then in such event, Manager and Tribe shall have the sole authority
for the selection of any replacement of their appointee with a qualified person
or persons of their choice.

 

3.3           Security.  Manager shall select and employ, on behalf of
the Enterprise, personnel to reasonably insure the safety and security of the
Facility (including any parking lots or garages) and guests, employees arid the
handling of monies related to the Gaming Operations or any other revenue center
within or connected to the Gaming Facility, including a Director of Security,
who shall report to General Manager on site and shall provide a copy of any
written report directly to Manager. 
Manager shall work toward establishing a security force of a high level
of training and expertise.  All reports
and information from the Director of Security shall be made immediately
available to the Tribal Gaming Board as established under the Tribal Gaming
Ordinance.  All expenses of such security
activities shall be an Operating Expense of the operation of the Facility, including
professional training, uniforms, transportation and any arms or other equipment
reasonably necessary, in the judgment of Manager, to the proper fulfillment of
the responsibilities of the security force.

 

19

 

3.4           Limited Appointment
of Manager as Independent Contractor to Tribe.  This agreement does not transfer any interest
in the Property to Manager.  Manager,
however, is hereby appointed, delegated, employed and authorized to act on
behalf of Tribe as Tribe’s Independent Contractor in carrying out a variety of
duties necessary to the proper and efficient management and operation of the
Gaming Facility on behalf of Tribe as follows:

 

A.            Operation of
General Business and Business Affairs. 
Manager shall manage the day-to-day operation of the Gaming Facility,
including, but not limited to, the general business and business affairs in
connection with financing, construction, improvement, development, operation,
management and maintenance of the Facility, real estate and all improvements to
the Property set aside for the use of Manager and for the operation of the
Gaming Facility.  In carrying out these
duties and responsibilities, Manager promises and agrees to comply with the
letter and spirit of this agreement, its terms and conditions.  Manager is not authorized or empowered to
obligate Tribe or to pledge tribal assets to secure any debt or obligation of
the Gaming Facility.

 

B.            Management and
Control.  Manager shall have the
exclusive authority over, and right to control of, the day-to-day management
and control of the Gaming Operation and all non gaming activities other than
the smoke shop, its employees, customers, revenues and any and all property and
assets assigned, located or otherwise used at or for the Gaming Facility.  Such authority shall include all decisions
regarding games played and the rules of play for such games, the odds or
payouts of such games, and the profit margins to be used in the sale of any
goods or services to be sold on the premises, all in compliance with the compact,
the Tribal Gaming Ordinance, and/or industry standards.  The control exercised by Tribe over the
Gaming Facility and the Gaming Operation shall be exercised through the
comprehensive Tribal Gaming

 

20

 

Ordinance and
regulations appropriately promulgated thereunder, the terms of any approved
Class III compact, and the terms of this agreement.

 

C.            Collection, Deposit
and Disbursement of Revenues.  As
Tribe’s Independent Contractor, Manager shall collect, receive and account for,
on behalf of Tribe, all revenues generated and resulting from the operation of
the Gaming Facility.  Such revenues shall
be deposited into an account or accounts of the Gaming Operation with such bank
or banks as Manager may choose, with the approval of Tribe, with the sole
signatories to be Manager or Manager’s duly authorized representatives
designated for those purposes.  Manager
is hereby authorized to make all such disbursements and expenditures as are
necessary from said account in order to fund all Gaming Operations and other
expenses related to the Gaming Facility, including, but not limited to,
Operating Expenses and non-gaming operating expenses; and the disbursement of
Net Revenues and Non Gaming Net Revenues due Tribe and Manager.  All such expenditures and disbursements shall
be clearly represented within and on the regular monthly financial statement or
report provided by Manager to Tribe as more specifically set forth herein
below.

 

ARTICLE IV

ACCOUNTING AND FINANCIAL REPORTING

 

4.1           Accounting.  Manager shall provide for the establishment
and maintenance of satisfactory accounting systems and procedures that shall,
at a minimum: (a) include an adequate system of internal accounting controls;
(b) permit the preparation of financial statements in accordance with generally
accepted accounting principles; (c) be susceptible to audit; (d) allow the
Class II Gaming Operation, the Tribe, and the Commission to calculate the
annual fee under the Act; (e) permit the calculation and payment of the
Manager’s fee; and (f) provide for the allocation of operating expenses or
overhead expenses among the Tribe, the tribal Gaming

 

21

 

Enterprise, the
Manager, and any other user of shared facilities and services.  Any such allocation shall be reasonable, and
shall be acceptable to both Tribe and Manager.

 

4.2           Financial Records
and Statements.  Manager shall
maintain full and accurate books of account upon the premises and provide
access to Tribe or Tribe’s delegated representative for the inspection of such
books of account at any time.  Such books
shall be kept in compliance with generally accepted accounting principles, and
pursuant to the requirements of the Act and the terms of any approved compact
for Class III gaming.  Manager shall
prepare and provide to the Tribe comparative financial statements monthly,
quarterly and annually of all sales, revenues and all other amounts collected
and received, and all deductions and disbursements made therefrom in connection
with the Gaming Operation and in conformance with the budget.  An independent, qualified Certified Public
Accountant selected by the Tribal Representative after discussions with the
Manager shall perform an annual audit of the Gaming Operation and of all
contracts for supplies, services or concessions for a contract amount in excess
of $25,000.00 annually (except contracts for professional legal or accounting
services) reflecting Operating Expenses as defined herein.  The costs incurred for such audits shall be
an Operating Expense of the Gaming Operation. 
Such audits shall be provided by the Business Committee, on behalf of
the Tribe, to all appropriate governmental agencies, as required by law, and
may be used by Manager for reporting purposes under Federal and State
securities laws, if required.

 

A.            Certified Public
Accountant.  Manager shall employ, as
an Operating Expense, a bookkeeper, certified public accountant or accounting
firm to oversee the performance of such accounting tasks as are required to
meet the requirements of this agreement, and in order to assist Manager with
the financial information needed to fully and properly carry

 

22

 

out the general
duties and responsibilities of Manager hereunder.  Manager shall design and install systems for
insuring the security of all funds and maintain and police such systems as
Manager sees fit.  The person or firm so
retained by Manager shall be independent from the CPA defined in paragraph 1.2
hereof.

 

B.            Daily Reports.  Manager shall ensure the capacity to
determine the daily revenues, including the gross handle and hold of the Gaming
Facility, and shall communicate daily results to the Tribe.

 

C.            Financial Reporting.  Manager shall provide separate accountability
and financial reporting for all non-gaming profit centers as exist within the
Facility or as may be otherwise related to the Gaming Facility, such as
restaurants, gift shops, hotels or otherwise.

 

D.            Deposit of Proceeds.  Proceeds from all such profit centers shall
be deposited and secured by Manager for deposit at such bank or banks as may be
selected by Manager and Tribe.

 

E.             Cash Management
System.  Manager shall establish a
cash management system which is adequate to safeguard the funds of the Gaming
Operation.  The Tribe shall have the
right to oversee the cash management system, including video surveillance.

 

F.             Tax Withholdings
on Winnings.  Manager shall be
responsible for reporting and withholding taxes with respect to the winnings
from gaming or wagering operations as may be required by the Internal Revenue
Code of 1986, as amended.

 

G.            Internal Revenue
Code.  Manager shall be responsible
for compliance with all other lawful requirements imposed by the Internal
Revenue Code.

 

4.3           Depositories and
Accounts.  Manager shall, as agent
for Tribe, establish sufficient bank accounts as are deemed necessary and
appropriate to the proper management and control of

 

23

 

all revenues generated
upon the Facility Manager and Tribe shall mutually determine those depositories
to be used for these purposes.

 

A.            Tax Identification
Number.  Manager will not use the
Tribal Tax Identification Number for any or all such accounts.  Manager shall secure a separate Tax
Identification Number for the Gaming Enterprise as a means of insuring against
any and all claims of third parties, including creditors or state and federal
authorities who make any claim against Manager. 
The use of such Tax Number shall not change or reduce the authority of
Manager over the use or disbursement of such monies as is otherwise authorized
by this agreement.

 

B.            Change of
Depository.  With the consent of the
Tribal Representative, Manager may from time to time change the depositories
used for the facility, but shall be required to give Tribe notice of Manager’s
intent so to do no less than twenty (20) days previous to any such change in
depositories.  Failure of the Tribe to
object within such twenty (20) day notice shall be deemed to be approval of the
change in depositories.  Such notice
shall contain a full and complete statement of the reason for such change and
the basis upon which such selection of the new depository was made.

 

ARTICLE V

REVENUES, PROFITS AND TAXES

 

5.1           Determination of Net
Revenues and Non-Gaming Net Revenues. 
For the purposes of determining Net Revenues in order to calculate the
proper distribution of profits between Tribe and Manager, Net Revenues are
defined in paragraph 1.10 hereof and Non-Gaming Net Revenues are defined in
Paragraph 1.11 hereof.

 

5.2           Distribution of
Profits.  The distribution of profits
shall be made within twenty (20) days of the close of each calendar month,
following calculation of Net Revenues and Non-

 

24

 

Gaming Net
Revenues by Manager and after report of said calculations and the resulting
distribution plan is delivered to Tribe. 
All payments to the Tribe of its share of Net Revenues and Non-Gaming
Net Revenues or its guaranteed payment shall be deposited as instructed, in
writing, from time to time.  Tribe and
Manager shall bear the burden of any loss for non-gaming operations in the
following ratio: 65% Tribe and 35% Manager. 
Any such loss shall be deducted from Net Revenues before payment of
Management Fees or disbursement of Net Revenues to Tribe.

 

A.            Objections to
Calculations.  Any objection or
difference of opinion that Tribe might have with the manner of calculation
shall be the subject of good faith negotiation between the parties.

 

B.            Waiver of
Objections.  Tribe shall endeavor to
review the reports referred to in paragraph 5.2 above promptly.  Failure of Tribe to raise any such objection
within sixty (60) days of such distribution report shall result in the waiver
by Tribe of such objections, unless Manager has failed to adequately report
income and expense or has failed to properly calculate the distributions, and
in the absence of fraud, Tribe shall be estopped from making such objections
thereafter.

 

C.            Miscalculation.  In the event that it is determined as a
result of timely objection of Tribe that Manager is indebted to Tribe for
miscalculation or otherwise, Tribe shall be entitled to repayment of such
amounts as are determined to be owed, with interest at the current treasury
bond rate at the time such determination is made and entered.  Likewise, any such debt or judgment awarded
Manager against Tribe shall earn interest at the same rate, and in either case
such award may be paid immediately or out of future Net Revenues and Non-Gaming

 

25

 

Net Revenues.  Terms of repayment shall be negotiated in
good faith by the parties hereto.  Upon
failure of the parties to agree, such terms shall be established by the Tribal
Gaming Board.

 

5.3           Fiduciary
Relationship of Manager to Tribe.  In
the carrying out of Manager’s duties and responsibilities under this agreement,
Manager acts as the fiduciary of Tribe and shall be held to the traditional
standards of a fiduciary therein.

 

ARTICLE VI

COMPENSATION AND REIMBURSEMENT

 

6.1           Management Fee.  In consideration of the performance of the
duties and obligations assumed by Manager hereunder, Tribe agrees that Manager
shall receive compensation equal to the sum of (i) the lesser of (a) thirty
percent (30%) of Net Revenues, or (b) thirty-five percent (35%) of Adjusted Net
Revenues plus (ii) 30% of Non-Gaming Net Revenues.  Adjusted Net Revenues shall mean Net Revenues
plus depreciation and amortization determined in accordance with GAAP, less all
amounts paid to retire the principal balance of any loans.  After payment of the Management Fee to
Manager, remaining Net Revenue and Non-Gaming Net Revenues shall be paid to
Tribe.  Management Fees shall be
calculated monthly and adjusted annually. 
The annual adjustment shall be reviewed and confirmed by the CPA.

 

Tribe agrees that
it shall pay all principal payments required to be made on any loans provided
to the Gaming Operation out of Tribe’s share of Net Revenues and Non-Gaming Net
Revenues.  Manager is hereby empowered to
make such payments directly to the holder of any such loan out of Net Revenues
and Non-Gaming Net Revenues from the Gaming Facility before any distribution to
the Tribe.

 

6.2           Justification for
Manager’s Compensation.  The agreement
between Tribe and Manager is based on the substantial investments, obligations
and liabilities to be made or incurred by Manager of in excess of approximately
Five Million Dollars and No/100 Dollars

 

26

 

($5,000,000.00)
required of Manager in order to build the Facility and to purchase, lease or
otherwise obtain all utilities, start-up costs, gaming equipment, machinery,
devices and furnishings necessary to Tribe’s Gaming Facility as planned.  As further consideration for the expenditure
and investment required of Manager, Tribe extends the term of this agreement
from five (5) years to seven (7) years in order to allow Manager sufficient
time to recoup the initial investment made and to gain what the parties believe
to be adequate earnings on said investment. 
Tribe will urge the approval of these terms by the National Indian
Gaming Commission, or such other appropriate federal agency as required.

 

6.3           Guaranteed Payment
to Tribe.  Manager agrees that the Tribe
shall receive a minimum monthly distribution of Net Revenue pursuant to Section
5.2 hereof in the amount of Five Thousand and No/100 Dollars ($5,000.00)
(“Monthly Guaranteed Payment”), the first payment due on or before the
twentieth (20th) day of the second full month of operation of the Facility and
due on or before the same date of each month thereafter throughout the term of
this Agreement, without regard to the profitability of said Gaming
Facility.  In addition, Manager agrees to
make an additional monthly payment to Tribe of Ten Thousand and No/100 Dollars
($10,000.00) per month (“Additional Payment”) after payment of all Operating
Expenses and Joan amortization, but before any payment to Manager of Net
Revenues.  (The first year of operation
shall be prorated).  At such time as
Tribe shall have received One Hundred Twenty Thousand and No/100 Dollars
($120,000.00) in total distributions of the aggregate of Additional Payments
and Net Revenues in any calendar year, no further Additional Payments shall be
paid to Tribe during that calendar year; however, the Monthly Guaranteed
Payment shall continue.

 

27

 

ARTICLE VII

REIMBURSEMENT OF DEVELOPMENT COSTS - LOAN

 

7.1           Repayment of Loan.  Certain expenditures have been, and/or will
be, made, secured or arranged by Manager, toward the development, including
construction and remodeling of this Gaming Facility.  Such expenditures include but are not limited
to the purchase of equipment, machinery, furniture and fixtures, as well as
attorney fees and related transactional expenses.  All such expenses will be evidenced by a Note
or Notes or a Loan Agreement or Loan Agreements to be negotiated in good faith.  All interest charged on any such loans shall
be equal to Manager’s interest cost and shall otherwise be competitive and
commercially reasonable rates, after taking into consideration the nature and
term of the loan and the security available .for repayment thereof.  The initial loan, in the approximate amount of
Five Million Eight Hundred Thousand and No/100) Dollars ($5,800,000.00), shall
bear interest at the rate of 9.25% per annum and shall be amortized over seven
(7) years.  Such loans are hereby secured
by the Business Corporation’s pledge of removable equipment, furniture and
trade fixtures purchased with funds loaned to the Business Corporation, and by
the future gaming revenues from the Gaming Operation or the Gaming
Facility.  The furniture, trade fixtures
and equipment and gaming revenues shall be the sole source of repayment and
collateral and neither the Tribe nor the Business Corporation shall have any
other responsibility for retirement of the debt.  The real property, including the building and
all permanent equipment and fixtures which become realty under Oklahoma law,
shall not be collateral for the loan. 
During the term of this Agreement as long as Manager is managing the
Gaming.  Enterprise, in the event that
cash flow from operations is inadequate to pay principal or interest on the
Loan, any shortage shall be suspended until cash flow is adequate to cure such
delinquency and any such suspension shall not cause an default in the Loan
Documents.

 

28

 

7.2           Limitations on Loan.  Tribe and Manager agree that Manager’s
initial development costs for the Project shall not exceed Five Million Eight
Hundred Thousand and No/100 Dollars ($5,800,000.00) in costs, credit or other
forms of financial contribution by purchase of gaming equipment and other
necessary equipment, machinery and furnishings, including overhead, financing
costs and for funding of the house bank and initial payroll and pre-opening
costs, and that the loan from Manager to the Business Corporation shall not
exceed Five Million Eight Hundred Thousand and No/100 Dollars ($5,800,000.00).

 

7.3           THIS SECTION
INTENTIONALLY LEFT BLANK.

 

7.4           Final Distribution.  Upon termination or expiration of this
Agreement, Manager shall be entitled to receive from the Tribe, cash equal to
thirty percent (30%) of the Gaming Operation undistributed Net Revenues and
Non-Gaming Net Revenues.

 

ARTICLE VIII

NOTICE

 

8.1           Notices.  Any notice required to be given pursuant to
this Agreement shall be delivered by certified mail addressed to Tribe at:

 

CHEYENNE AND
ARAPAHO TRIBES OF Oklahoma

P.O. Box 38

Concho,
Oklahoma  73022

 

and to the Manager
at:

 

Southwest Casino
and Hotel Corp.

c/o James B.
Druck, President

2001 Killebrew
Drive, Suite 345

Minneapolis,
Minnesota  55425

 

and to NIGC at:

 

National Indian
Gaming Commission

1850 M Street
N.W., Suite 250

Washington,
D.C.  20036

 

29

 

ARTICLE IX

WARRANTIES AND REPRESENTATIONS

 

9.1           Warranties and
Representations.  The parties to this
agreement warrant and represent to each other that they will each act
responsibly to promptly request the approval of this agreement by the proper
federal agency or commission; that they will take no action, nor fail to take
appropriate action to secure the approval of this agreement.  Neither party shall attempt to alter the
terms of this agreement without the written consent of the other, nor will they
attempt to make assignment or transfer of their rights in whole or in part
hereunder to any third party.  Tribe warrants
to Manager that Tribe hereby exempts this Facility from any ordinance or
regulation which will, by virtue of the enforcement of such ordinance or
regulation, effectively amend or modify the terms of this agreement, or in any
way reduce the benefits to Manager from this agreement whether presently
existing or hereafter promulgated for the term of this agreement.

 

ARTICLE X

GROUNDS FOR TERMINATION

 

10.1         Breach by Manager.  This agreement may be terminated upon the
written consent and approval of both parties, or by the Tribe in the event that
any principal, employee or agent of Manager is found guilty of theft or
embezzlement of monies or assets of the Tribal Gaming Operation.  For purposes of this section, a principal of
Manager shall be defined as James B. Druck, Jeffrey S. Halpern or Robert C.
Harvey.  However, in the event of such
final determination of guilt, Manager may terminate such principal, employee or
agent of Manager and make restitution for the amount lost and thereby preclude
Tribe’s right to terminate.  This
agreement may also be terminated by a final judgment of a court of competent
jurisdiction as a result of a finding of a material breach of same.  Subject to Manager’s ability to cure any
shortfall by restitution as provided above, it is specifically understood and
agreed that this agreement may be terminated by the Tribe in the event that
Manager fails to make any payment

 

30

 

to the Tribe when
due without good cause or reasonable explanation therefor (it being understood
that mistake, inadvertence or other negligent error shall constitute
“reasonable explanation” hereunder), which shall be considered a material
breach of this agreement.  A material
breach of this agreement shall include, but not be limited to, a failure of
either party to perform any material duty or obligation on its part for any
twenty (20) consecutive days.  However,
neither party may terminate this agreement on grounds of material breach unless
it has provided written notice to the other party of its intention to declare a
default and to terminate this agreement, and the defaulting party thereafter
fails to cure or take steps to substantially cure the default within sixty (60)
days following receipt of such notice. 
The discontinuance or correction of the material breach shall constitute
a cure thereof.  In the event of any
termination for cause, regardless of fault, the parties shall retain all monies
previously paid to them pursuant to Article 6 (Compensation and Reimbursement)
of this agreement; and the Tribe shall retain title to all Gaming Operation
facilities, fixtures, improvements, supplies, equipment, funds and accounts
(collectively, the “Gaming Operation Assets”), subject to the rights of Manager
or any third party lender under: any Loan Agreements relating to the
acquisition or financing of all or any portion of the Gaming Operation Assets,
including but not limited to the Adjustable Rate Promissory Note, Security
Agreement and Loan Agreement between the Tribe and Manager.  Notwithstanding the foregoing, to the extent
Manager has, at the time of the termination, Net Revenues due under Article 6
of this Agreement, such Net Revenues shall be paid to Manager promptly upon
termination.  In addition, Manager shall
continue to have the right to repayment of unpaid principal and interest under
the Note in accordance with the terms thereof.

 

10.2         Tribal Breach.  In the event of termination where the Tribe
has breached this agreement, Manager shall not be required to perform any
further services under this agreement

 

31

 

and the Business
Committee and the Tribe shall indemnify and hold Manager harmless against all
liabilities of any nature whatsoever relating to the Gaming Operation or
created by the termination of this agreement. 
Any Net Revenues on hand- at the time of termination will be distributed
in accordance with Article 6 of this Agreement. 
Manager and the Tribe acknowledge and agree that termination of this
Agreement may not be a sufficient or appropriate remedy for breach, and further
agree that pursuant to the other provisions of this Agreement, including but
not necessarily limited to, Sections 18 and 19, Manager shall have the right to
pursue such remedies- (in addition to termination at law or equity) as it
determines are best able to compensate it for such breach.  Manager shall specifically be entitled to
recover its share of Net Revenues for the period commencing on the date of any
breach by the Tribe and continuing through the remaining term of this
Agreement.  In addition, the Tribe
specifically acknowledges and agrees that there will be irreparable harm and
that full damages will be difficult to determine if the Tribe commits any
breach.  The Tribe further acknowledges
and agrees that an injunction and/or other equitable relief is an appropriate
remedy for a Tribal breach of this Agreement. 
An ejection to pursue damages or to pursue specific performance of this
Agreement or other equitable remedies while this Agreement remains in effect
shall not preclude the injured party from providing notice of termination
pursuant to the provisions of this Section 10. 
Regardless of the remedy selected, Manager shall retain the right to
repayment of unpaid principal and interest and other amounts due under this
Agreement, the Note and Loan Agreement, and its continued interest in the
Security Agreement.

 

10.3         Involuntary
Termination Due to Changes in Applicable Law.  It is the understanding and intention of the
parties that the establishment and operation of the Gaming Operation
contemplated herein conforms to and complies with all applicable laws.  If this

 

32

 

agreement, the
Gaming Operation, any material aspect of Gaming or any material aspect of any
tribal compact is determined by the Congress of the United States, the
Department of the Interior, the National Indian Gaming Commission, or the final
judgment of a court of competent jurisdiction to be unlawful under Federal or
State law, the obligations of the parties hereto shall cease and this Agreement
shall be of no further force and effect; provided that (i) Manager shall have
the rights in Article 2.2 F. of this agreement; (ii) Manager and the Tribe
shall retain all monies previously paid to them pursuant to Article 6 of this
agreement; (iii) funds of the Gaming Operation (excluding working capital if it
has not been repaid to Manager by the Tribe) in any account shall be paid and
distributed as provided in Article 6 of this agreement; (iv) any monies loaned or
secured or arranged by Manager to or for the Tribe under any note and loan
agreements shall be repaid to Manager in accordance with the note and loan
agreement (subject to acceleration by Manager in accordance with Article 10.1
hereof); and (v) the Tribe shall retain title to all Gaming Operation
facilities, fixtures, improvements, supplies and equipment, subject to the
rights of Manager under any security agreement and subject to any requirements
of financing arrangements.

 

10.4         Manager’s Rights to
Terminate.  In the event that
conditions beyond the reasonable control of Manager occur, which in Manager’s
sale discretion cause Manager to believe that this agreement cannot be
reasonably performed by either party, Manager may terminate this agreement
without penalty at any time prior to commencement of construction.  In addition, the Manager shall have the right
to terminate this agreement any time within twenty-four (24) months after the
date of this agreement if the conditions in Section 2.3 of this Agreement are
not satisfied by the Tribe.  In either
event, Manager shall continue to have the

 

33

 

right to repayment
of unpaid principal and interest, if any, under the Note and Loan Agreement,
which amounts may be accelerated by Manager as set forth in Article 10.1
hereof.

 

10.5         Dissolution,
Insolvency or Bankruptcy of Manager. 
If the Manager is dissolved, executes any petition under the Bankruptcy
Code, files for or is declared bankrupt, becomes insolvent, ceases to function
as a business entity, fails to perform or otherwise is guilty of a material
breach of this agreement, or if the Manager’s creditors cause to be executed
any valid petition under the Bankruptcy Code then, upon the occurrence of any
such event, Manager’s rights under this agreement shall cease and the agreement
shall terminate.  An accounting shall
thereafter be made and Manager or its successor or legal representative shall
be entitled to a pro rata share of the profits earned to the date of insolvency
or default and the right to repayment of any loans, and shall likewise be
liable for any losses incurred to that date.

 

ARTICLE XI

INSURANCE

 

11.1         Public Liability
Insurance.  The Manager shall
maintain public liability insurance in the amount of at least 51,000,000 per
person and 53,000,000 per occurrence. 
Manager shall also keep the buildings, improvements and contents thereon
insured for their full replacement value against Joss or damage by fire, with extended
coverage endorsement and vandalism coverage. 
The exact nature and extent of such coverage shall be agreed upon by the
parties, and in the event of disagreement, an experienced and licensed
appraiser shall be hired to determine same. 
The Tribe will be named as an insured in al/ policies and Manager will
supply to the Tribe written evidence satisfactory to the Tribe of such
continuing insurance coverage annually thereafter.  Such insurance premiums and appraisal shall
be an expense of operation.  Manager
shall secure fidelity bonds or insurance acceptable to Tribe in an amount
adequate to protect the

 

34

 

accounts of the
Enterprise on all persons with signature authority over accounts of the
Enterprise and all persons with money room access.

 

ARTICLE XII

SUCCESSORS AND ASSIGNMENTS

 

12.1         Binding Effect.  The benefits and obligations of this
agreement shall inure to and be binding upon the parties hereto, their
respective successors and assigns, provided that neither party may assign or
sublease their interest in this agreement without prior written approval of the
other party.  Any assignment or sublease
under this agreement shall be subject to approval by NIGC, and shall be
preceded by a complete background investigation of such assignee or sub-lessee:
Tribe understands that Manager is about to become a public company and will be
subject to financial and other reporting requirements pursuant to Section 12
(g) of the Securities and Exchange Act of 1934.

 

ARTICLE XIII

RECORDATION

 

13.1         Recording of Agreement.  At the option of Manager, this agreement may
be recorded in any public records.

 

ARTICLE XIV

NO PARTNERSHIP

 

14.1         Nothing in this agreement
is intended to create or constitute the parties as partners together, or one to
the other, and it is expressly agreed that this business relationship shall not
be a partnership.

 

ARTICLE XV

ENTIRE AGREEMENT

 

15.1         This agreement represents
the entire management agreement between the Tribe and Manager, and supersedes
all other previous agreements, whether written or oral, that may have been
entered into.

 

35

 

ARTICLE XVI

NON-INTERFERENCE

 

16.1         As a material and
substantial consideration for the Tribe entering into this agreement, Manager
agrees that neither Manager, its agents and employees shall interfere with or
attempt to influence internal affairs or governmental decisions of the Tribe
with the exception that Manager may choose to publicly or privately oppose any
proposed act or decision that in Manager’s opinion would be detrimental to the
gaming activity and profits to be earned therefrom.

 

ARTICLE XVII

EXECUTION IN MULTIPLE

 

17.1         This Agreement is being
executed in five originals, one copy to be retained by each party and three to
be presented for review of the appropriate Federal agency or commission.  All are equally valid.

 

ARTICLE XVIII

SOVEREIGN IMMUNITY AND JURISDICTION

 

18.1         Council’s Limited
Waiver of Sovereign Immunity.  The
Tribe does not waive, limit, or modify its sovereign immunity from uncontested
suit, except as expressly provided in this Section 18.  The Tribe expressly waives its sovereign
immunity from suit and consents to (i) submitting to the jurisdiction of
the arbitration process provided for in Section 18.3 hereof and (ii) being
sued in the United States District Court for the District of Oklahoma for the
limited purpose of enforcing the covenants in this Agreement as between the
Tribe and Manager (hereinafter referred to as “Claim”), including the
arbitration provisions of Section 18.3 hereof. 
The waiver of sovereign immunity contained in this Section is further
limited as follows:

 

18.1.1 Monetary
Damages.  The Tribe waives its
immunity in connection with any arbitration award entered pursuant to section
18.3 hereof, and any court order

 

36

 

to enforce such an
award to the extent that such an award or order may be enforced or executed
against (i) removable furniture, trade fixtures and equipment of the
Gaming Enterprise; (ii) undistributed Net Revenues; (iii) undistributed
Non-Gaming Net Revenues; and (iv)future proceeds of any other gaming operation
conducted by the Tribe at the Gaming Facility or any other business operated in
the Gaming Facility, and any arbitration award or order to enforce such an
award may be enforced or executed against such proceeds.  The real property, including the building and
all permanent equipment and fixtures which become realty under Oklahoma law,
shall not be collateral for the loan.  No
other assets of the Tribe are, or shall be, subject to the Security Agreement
nor are, or shall, such assets be available to satisfy any such award or
judgment.

 

18.2         Equitable Relief.  The Tribe waives its immunity in connection
with any arbitration award or court order to provide a provisional remedy in
connection with any claim pending under this agreement and further consents
that the arbitrator or any court of competent jurisdiction may grant equitable
relief against the Tribe, either in the form of mandamus relief/specific
performance or injunction which compels the Tribe to perform a duty ascribed to
the Tribe under the terms of this Agreement or which prohibits the Tribe from
engaging in conduct that is contrary to the terms of this Agreement.

 

18.3         Arbitration.  Any controversy or claim arising out of or
relating to this Agreement, or the breach thereof, shall be settled by binding
arbitration in accordance with the Commercial Arbitration Rules of the American
Arbitration Association, and judgment upon the award rendered by the
arbitrator(s) may be entered in a court subject to the provisions of Section 18
of this Agreement.  Either party may
specify and require that any arbitrator selected shall be

 

37

 

an attorney licensed
to practice law in the State of Oklahoma. 
If more than one arbitrator is used, the Tribe shall select one, Manager
shall select one, and the two so selected shall select a third arbitrator.  The awards of any arbitration shall be
governed by Title 9 of the United States Code, except as the same may be
changed or limited by the provisions of this Agreement.

 

18.4

 

A.            Resolution of
Disputes between Manager and Customers of the Gaming Operation.  Manager shall prescribe rules of play for
each type of gaming which has been licensed by the Tribal Gaming Board.  Such rules of play shall be posted in plain
view, accessible and visible by all customers of the Gaming Operation.  All games shall be conducted fairly and
honestly by both Manager and customers.  In
the event of a dispute between Manager and any customer, the written rules of
play shall govern.  However, Manager
shall strive to satisfy the customer in the resolution of any dispute.  The General Manager shall be initially
responsible to attempt to resolve all such disputes.  If a dispute cannot be resolved by the
General Manager, the General Manager shall immediately submit a written report
of the dispute to both Manager and Tribal Coordinator who shall discuss the
dispute with each other and with the customer. 
Manager shall make the final determination of the action to be taken to
resolve the dispute, after consulting with Tribal Coordinator, and Manager’s
decision shall be final.  Any customer
who is not satisfied with the decision of Manager may appeal the decision to
the Tribal Gaming Board.

 

B.            Resolution of
Disputes Between Manager and Employees of the Gaming Operation.  Manager shall prepare and submit to Tribal
Coordinator a personnel manual which shall describe all personnel policies,
procedures, job classifications, salary levels, disciplinary procedures and
fringe benefits.  The personnel manual
shall be available to each employee.  The

 

38

 

manual shall
provide for establishment of a Grievance Committee.  The Grievance Committee shall consist of the
General Manager, the Tribal Coordinator and a third person selected by
Manager.  The third person may be the
Director of Human Resources for either the Tribe, the Manager or the Gaming
Operation, or such other third person as may be qualified in such matters.  The selection of the third person by Manager
shall be final.  The decision of the
Grievance Committee shall be final with respect to all disputes.

 

ARTICLE XIX

MISCELLANEOUS

 

19.1         Parties in Interest.  Manager agrees to have attached to this
Agreement as Exhibit B, a list of all parties in interest to the contract,
including on behalf of the Manager, all corporate directors, all stockholders
of the corporation holding five percent (5%) or more of the stock of the
corporation, the top ten shareholders, and all employees presently hired who
will have day-to-day management responsibility for the Gaming Operations.  Manager agrees to inform the Tribe, in writing,
of any change of parties in interest including all corporate directors and
stockholders holding five percent (5%) or more of the stock of the corporation.

 

19.2         Parties’ Personal
History Statements.  The list of
parties in interest shall include brief personal history statements including
their residence and business addresses, occupations, dates of birth and social
security numbers for all employees presently hired who will have day-to-day
management responsibility for the Gaming Operations and all stockholders of the
corporation holding five percent (5%) or more of the stock of the corporation.

 

19.3         Corporate Documents
and Authorization.  Manager has
previously provided to Tribe its Articles of Incorporation and the Corporate
Resolution authorizing this agreement.

 

19.4         Conflict of Interest.  Manager agrees that no person who has a
financial interest in Manager shall be elected members of the Tribal government
or a relative of an elected member

 

39

 

of the Tribal
government.  In the event any party in
interest or a relative thereof is elected to the Tribal government, such person
shall be required to divest himself or herself of his or her interest in the
contract.

 

19.5         Limitation on Tribal
Offices.  Manager agrees that no
elected member of the Tribal government, or relative residing in the immediate
household of an elected member of the Tribal government, may be hired as an
employee of the Manager or of the gaming Operation.

 

19.6         Relative.  “Relative” for these purposes means an
individual who is related to an elected member of the Tribal government as a
father, mother, son, daughter, brother, sister, uncle, aunt, first cousin,
nephew, niece, husband, wife, father-in-law, mother-in-law, son-in-law,
daughter-in-law, brother-in-law, sister-in-law, stepfather, stepmother,
stepsister, half brother or half sister.

 

19.7         No Payments.  Manager agrees that no payments have been and
no payments will be made to any elected member of the Tribal government or the
relative of any elected member of the Tribal government for the purpose of
obtaining or maintaining the contract or any other privilege for the Manager.

 

19.8         Effective Date.  The Effective Date of this agreement shall
mean the date that the written approval of this agreement is granted by NIGC
pursuant to the Act.  The Tribe agrees to
use its best efforts to satisfy all of the above conditions within twelve (12)
months after the date of this agreement. 
Pending approval of this agreement by N.I.G.C. parties acknowledge that
Second Amended and Restated Gaming Management Agreement dated October 8, 1993
shall remain in full force and effect.

 

19.9         Contingencies.  This agreement is subject to the following
matters:

 

40

 

(a)                                  availability
of financing which will be preliminarily secured prior to execution of this
agreement; and

 

(b)                                 approval
by the Tribe and Manager of the exact site and all plans, specifications and
design.

 

19.10       Exclusive.  At such time as Class III gaming is
available, Manager and Tribe shall negotiate in good faith to permit Manager to
expand the Facility, acquire all necessary equipment and loan sufficient and
necessary funds to the Tribe for the conducting of Class III gaming activities,
and to manage such Class III Gaming Facility in addition to the management of
the Class II Gaming Facility located at Concho, Oklahoma.  The terms of any such agreement involving
Class III gaming, shall be negotiated in good faith and shall include a loan to
the Tribe for the costs of construction, equipment and all necessary furniture
and fixtures and shall be subject to the approval of NIGC.  In consideration of the covenants of Manager
contained herein, the receipt and sufficiency of which are hereby acknowledged
by Tribe, other than continuing the existing bingo operation at Watonga,
Oklahoma, Tribe agrees that for a period of time commencing as of the date
hereof and continuing through the end of the term of this Agreement, as it may
be extended, it shall not participate, directly or indirectly, in any other
gaming operations within a radius of 55 miles from Concho, Oklahoma, without
the prior written consent of Manager. 
Since any violation of the foregoing provisions of this Section 19.10 by
the Tribe would result in immediate and irreparable injury to the Manager, the
Tribe agrees that the Manager will have the right to obtain equitable relief
including an injunction to specifically enforce the terms of this Section
19.10, and to obtain any other legal or equitable remedies that may be
available.  In the event of any violation
by the Tribe of this Section 19.10, the Tribe agrees to pay the reasonable
costs and legal fees to the Manager in pursuing any of its rights with

 

41

 

respect to this
Section 19.10, in addition to the damages sustained by the Manager.  For purposes of enforcing its rights under
this Section 19.10, the Tribe agrees that any action brought by Manager to
enforce its rights under this Section 19.10 may be venued in the United States
District Court for the Western District of Oklahoma, and the Tribe hereby
submits to the jurisdiction of such court for that limited purpose.  Manager agrees that during the term of this
Agreement it shall not participate in any other gaming operation within a
radius of 65 miles from Concho, Oklahoma without prior written consent of
Tribe.

 

19.11       Old Facility.  Manager shall consult with Tribe about the
existing bingo operation.

 

19.12       Semi Annual Meeting.  Manager shall be available for a meeting at
the Gaming Operation with its principals and the Business Committee, Tribal
Representative and Tribal Gaming Board at least every six {5} months during the
term hereof to discuss all matters relevant to the Gaming Operation.

 

ARTICLE XX

DUTY TO DEFEND, NOTICE OF CLAIMS, SELECTION OF COUNSEL

 

20.1         Defense of Claims.  It shall be the duty of the Manager to defend
any and all claims and actions brought against Manager, the Facility or Tribal
gaming interests with all costs of defense, including but not limited to, attorneys’
fees, necessary and reasonable expenses of the litigation, and expert witness
fees to be considered Operating Expenses of the gaming operations.  Such claims and actions shall not be limited
by the nature or the amount of such claims unless otherwise specifically stated
herein, but shall include only such claims and actions as are brought relative
to the duties and obligations of Manager under this management agreement and
any and all activities of Manager in the performance of its obligations hereunder.

 

20.2         Notice.  Manager shall be responsible for giving
prompt notice to Tribe of any and all claims or actions brought against
Manager, the Facility, Tribal gaming interests or any

 

42

 

persons acting on
behalf of any of the above, where such claim or action is related to the Gaming
Operation or the Facility.  Claims and
actions, for purposes of this agreement, shall include administrative, civil or
criminal actions brought in any forum or jurisdiction, including claims or
actions brought before the National Indian Gaming Commission pursuant to the
Indian Gaming Regulatory Act of 1988.

 

20.3         Duty to Defend.  Manager shall be required to defend any and
all such claims and to secure Tribal approval for hiring competent counsel in
the defense thereof at the expense of the Gaming Operation.  In the event that issues of such a nature and
magnitude are addressed by any such action or claim as to directly endanger the
Tribal governmental capacity of the Tribe, Tribal assets (other than future
earnings from the gaming operation) or other more substantial Tribal interests,
then in that event Tribe may elect to select and provide counsel of its choice
to address such issues in order to insure and protect its interest
therein.  At the option of Manager,
Manager may choose to provide co-counsel to work in conjunction with Tribal
counsel at the expense of the gaming operation. 
Any and all costs relative to Tribal counsel’s participation or assuming
of responsibility over such greater issues of said claims or actions, whether
administrative or otherwise, shall be an expense to be shared equally between
Tribe and the gaming operation with no more than one-half of said costs to be
paid as an expense of operation of the Facility.

 

20.4         Tribal Attorney.  Manager shall have the right to contract
independently with Tribe’s attorney to render any or all of said representation
hereinabove described, or Manager shall be entitled to select counsel with
Tribal approval for any and all representation, counsel, advice or other legal
services reasonably related to the fulfillment of their duties and obligations
and the exercise of their rights under this agreement.

 

43

 

20.5         Legal Fees.  Manager shall be responsible for any and all
costs of legal representation obtained by Manager for purposes other than
carrying out their duties and responsibilities under this agreement, and no
such other expenses or costs shall be paid as an expense of the operation of
the Facility.

 

20.6         Indemnification.  Manager shall be entitled to indemnification
from the Gaming Operation for all liabilities incurred and claims made as a
result of Manager’s good faith performance of duties under this Agreement If
the Tribe, Manager, any contractor or subcontractor or any employees of the
Gaming Operation are sued by any person based on Tribal, State or Federal
statute or law, Manager shall have the right to defend such action or actions
on behalf of itself.  The Tribe agrees to
defend itself and to fully cooperate in the defense.  The cost of defending a lawsuit pursuant to
this Section, as well as any liability incurred by Manager, shall be a Start-up
Expense where incurred prior to the Commencement Date and an Operating Expense
where incurred after the Commencement Date. 
Nothing in this Section 20.6 shall be construed to waive or limit the
Tribe’s sovereign immunity.

 

20.7         Severability.  If any provision of this Agreement is ruled
invalid by any court or authority of competent jurisdiction, it shall not
affect the validity of any other provision and it is the intent of the parties
that the remaining provisions continue in full force and effect.

 

44

 

ACKNOWLEDGEMENT

 

The CHEYENNE AND ARAPAHO TRIBES OF Oklahoma,
acting by and through its delegated representative, Charles Surveyor, Tribal
Chairman, and SOUTHWEST CAS}NO AND HOTEL
CORP., (formerly Southwest Casino and Hotel Ventures, Inc.), by its
President, hereby agree to the foregoing Management Agreement by and between
the CHEYENNE AND ARAPAHO TRIBES OF Oklahoma, and SOUTHWEST CASINO AND HOTEL
CORP., (formerly Southwest Casino and Hotel Ventures, Inc.), with an Effective
Date defined in Section 19.8 hereof.

 

IN WITNESS WHEREOF,
we hereby set our hands this 16 day of June, 1995, at Concho, Oklahoma.

 

	
   

  	
  CHEYENNE
  AND ARAPAHO TRIBES

  OF OKLAHOMA

  
	
   

  	
  By and through its
  delegated

  representative, Charles Surveyor, Chairman

  
	
   

  	
   

  
	
   

  	
  s/ ??

  
	
   

  	
   

  
	
  ATTEST:

  	
   

  
	
   

  	
   

  
	
  /s/ Archie Hoffman

  	
   

  	
   

  
	
  Secretary

  	
   

  
	
   

  	
   

  
	
   

  	
  SOUTHWEST
  CASINO AND HOTEL

  CORP., (formerly Southwest Casino and

  Hotel Ventures, Inc.), a Minnesota

  corporation

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ James B. Druck

  
	
   

  	
   

  	
  James B. Druck, President

  
				

 

THE FOREGOING
THIRD AMENDED AND RESTATED GAMING MANAGEMENT AGREEMENT is hereby approved this
       day of
               ,
1995.

 

	
   

  	
  NATIONAL INDIAN
  GAMING

  COMMISSION

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Its

  	
   

  

 

45

 

EXHIBIT
A

 

Legal Description and
Plat of Survey.

 

 

EXHIBIT
B

 

	
  JEFFREY
  S. HALPERN

  	
   

  	
  Officer, Director and
  Holder of a 5% or more interest in Southwest Casino and Hotel Corp.

  
	
   

  	
   

  	
   

  
	
  Residence:

  	
   

  	
  6617 Pawnee Road

  Edina, Minnesota 55435

  
	
   

  	
   

  	
   

  
	
  Business Address:

  	
   

  	
  2001 Killebrew Drive,
  Suite 345

  Minneapolis, Minnesota 55425

  
	
   

  	
   

  	
   

  
	
  Occupation:

  	
   

  	
  Attorney at Law - 25 years;

  Presently - Indian Gaming

  Development/Management

  
	
   

  	
   

  	
   

  
	
  Date of Birth:

  	
   

  	
  October 14, 1942

  
	
   

  	
   

  	
   

  
	
  Social Security No.

  	
   

  	
  ###-##-####

  
	
   

  	
   

  	
   

  
	
  JAMES
  B. DRUCK

  	
   

  	
  Officer, Director and
  Holder of a 5% or more interest in Southwest Casino and Hotel Corp.

  
	
   

  	
   

  	
   

  
	
  Residence:

  	
   

  	
  5135 Lonsdale Boulevard

  Webster, Minnesota 55088

  
	
   

  	
   

  	
   

  
	
  Business Address:

  	
   

  	
  2001 Killebrew Drive,
  Suite 345

  Minneapolis, Minnesota 55425

  
	
   

  	
   

  	
   

  
	
  Occupation:

  	
   

  	
  Attorney at Law - 25
  years;

  Presently - Indian Gaming

  Development/Management

  
	
   

  	
   

  	
   

  
	
  Date of Birth:

  	
   

  	
  September 9, 1941

  
	
   

  	
   

  	
   

  
	
  Social Security No.

  	
   

  	
  ###-##-####

  

 

 

	
  ROBERT
  E. ARMSTRONG

  	
   

  	
  Director of Southwest
  Casino and Hotel Corp.

  
	
   

  	
   

  	
   

  
	
  Residence:

  	
   

  	
  1750 Skyline Boulevard

  Reno, NV 89509

  
	
   

  	
   

  	
   

  
	
  Business Address:

  	
   

  	
  241 Ridge Street, 4th
  Floor

  P.O. Box 2670

  Reno, NV 89505

  
	
   

  	
   

  	
   

  
	
  Occupation:

  	
   

  	
  Attorney

  
	
   

  	
   

  	
   

  
	
  Date of Birth:

  	
   

  	
  March 25, 1954

  
	
   

  	
   

  	
   

  
	
  Social Security No.

  	
   

  	
  ###-##-####

  

 

 

TEN TOP SHAREHOLDERS:

 

Jeffrey Sorger Halpern

 

Social Security
No.:  ###-##-####

Birth Date:  10/14/42

Birth Place:  Minneapolis, Minnesota

Citizenship:  U.S.

Gender:  Male

 

James Burton Druck

 

Social Security
No.:  ###-##-####

Birth Date:  9/9/41

Birth Place:  St. Paul, Minnesota

Citizenship:  U.S.

Gender:  Male

 

Robert Charles Harvey

 

Social Security
No.:  ###-##-####

Birth Date:  4/5/51

Birth Place:  Minneapolis, Minnesota

Citizenship:  U.S.

Gender:  Male

 

Dr. Paul Mitchell Blum

 

Social Security
No.:  ###-##-####

Birth Date:  6/23/42

Birth Place:  Brooklyn, New York

Citizenship: U.S.

Gender:  Male

 

Dr. James Marshall Gordon

 

Social Security
No.:  ###-##-####

Birth Date:  8/18/40

Birth Place:  Minneapolis, Minnesota

Citizenship:  U.S.

Gender:  Male

 

 

Michael Gary Hofkin

 

Social Security
No.:  ###-##-####

Birth Date:  8/2/40

Birth Place:  Philadelphia, Pennsylvania

Citizenship:  U.S.

Gender:  Male

 

Sidney Kaplan

 

Social Security
No.:  ###-##-####

Birth Date:  5/22/39

Birth Place:  Chicago, Illinois

Citizenship:  U.S.

Gender:  Male

 

Irving Jay Pinto

 

Social Security
No.:  ###-##-####

Birth Date:  1/12/42

Birth Place:  Des Moines, Iowa

Citizenship:  U.S.

Gender.  Male

 

Primadonna Resorts, Inc.

 

Tax I.D. No.
88-0297563

Nevada Corporation

Incorporated April
13, 1993

 

Noel Paul Rahn

 

Social Security
No.:  ###-##-####

Birth Date:  2/14/39

Birth Place:  Mountain Lake, Minnesota

Citizenship:  U.S.

Gender:  Male

 

William Harry Thomas
(Director)

 

Social Security
No.:  ###-##-####

Birth Date:  9/27/42

Birth Place:  Minneapolis, Minnesota

Citizenship:  U.S.

Gender:  Male

 

 

STOCKHOLDERS HOLDING FIVE
PERCENT OR MORE OF STOCK:

 

Jeffrey Sorger Halpern

 

Social Security
No.:  ###-##-####

Birth Date:  10/14/42

Birth Place:  Minneapolis, Minnesota

Citizenship:  U.S.

Gender:  Male

 

James Burton Druck

 

Social Security
No.:  ###-##-####

Birth Date:  9/9/41

Birth Place:  St. Paul, Minnesota

Citizenship:  U.S.

Gender:  Male

 

Primadonna Resorts, Inc.

 

Tax I.D. No.
88-0297563

Nevada Corporation

Incorporated April
13, 1993

 

Robert Charles Harvey

 

Social Security
No.:  ###-##-####

Birth Date:  4/5/51

Birth Place:  Minneapolis, Minnesota

Citizenship:  U.S.

Gender:  MaleExhibit
10.6

 

AMENDMENT NO. 2 TO THIRD
AMENDED

AND RESTATED GAMING MANAGEMENT AGREEMENT

 

This Amendment No. 2 to Third Amended and Restated
Gaming Management Agreement made and entered into as of this 5th day of June,
1999, at Concho, Oklahoma, by and between THE CHEYENNE AND ARAPAHO TRIBES OF
OKLAHOMA, a federally recognized Indian tribe organized pursuant to Section 3
of the Act of June 26, 1936 (49 Stat. 1967) by and through its duly elected
Business Committee (hereinafter referred to as the “Tribe”), and SOUTHWEST
CASINO AND HOTEL CORP., a Minnesota corporation with its principal place of
business located in Minneapolis, Minnesota (hereinafter referred to as
“Manager”).

 

WITNESSETH:

 

WHEREAS, the Tribe and the Manager are parties to the
Third Amended and Restated Gaming Management Agreement dated June 16, 1995 (the
“Agreement”), for the operation of a Class II gaming facility at the location
described in the Agreement, which Agreement was amended by Amendment No. 1
dated November 21, 1996, and subsequently withdrawn on February 20, 1997; and

 

WHEREAS, the Tribe and Manager desire to amend the
Agreement as set forth below.

 

NOW, THEREFORE, it is agreed by the parties as
follows:

 

1.             All
capitalized terms not otherwise defined herein shall have the definitions
contained in the Agreement.

 

2.             Section
2.4 of the Agreement is hereby amended by deleting the first sentence of said
section and replacing it with the following sentence:

 

“This Agreement shall be for an initial term
commencing on May 20, 1994 and ending May 19, 2001, which term shall be
extended for an additional three-year period ending May 19, 2004.”

 

3.             Section
6.1 of the Agreement is hereby amended by deleting the first sentence of said
section and replacing it with the following sentence:

 

“In consideration of the performance of the duties and
obligations assumed by Manager hereunder, together with Manager’s contribution
to the Tribe of its 49.7 acre parcel of land near Elk City, Oklahoma, Manager
shall receive compensation equal to the sum of (i) the lesser of (a) thirty
percent (30%) of Net Revenues, or (b) thirty-five percent (35%) of Adjusted Net
Revenues plus (ii) thirty percent (30%) of Non-Gaming Net Revenues;
provided, however, for the three (3) year period commencing the first day of
the month following approval of

 

 

this Amendment No. 2 by the NIGC, Manager’s
compensation shall be equal to the sum of (i) thirty-five percent (35%) of Net
Revenues plus (ii) thirty-five percent (35%) of Non-Gaming Net Revenues.”

 

4.             Except
as provided above, all of the terms and conditions of the Agreement remain in
full force and effect.

 

ACKNOWLEDGMENT

 

THE CHEYENNE AND ARAPAHO TRIBES OF OKLAHOMA, acting by
and through its delegated representative, James Pedro, Tribal Chairman, and
SOUTHWEST CASINO AND HOTEL CORP. by its Chairman of the Board/Chief Executive
Officer hereby agree to the foregoing Amendment No. 2 to the Third Amended and
Restated Gaming Management Agreement by and between THE CHEYENNE AND ARAPAHO
TRIBES OF OKLAHOMA and SOUTHWEST CASINO AND HOTEL CORP. with an effective date
as defined in Section 19.8 of the Agreement.

 

IN WITNESS WHEREOF, we have set our hands this 5th day
of June, 1999 at Concho, Oklahoma.

 

	
   

  	
  CHEYENNE AND ARAPAHO TRIBES

  OF OKLAHOMA

  
	
   

  	
  By and through its delegated representative

  
	
   

  	
   

  
	
   

  	
  /s/ James Pedro

  
	
   

  	
  James Pedro, Chairman

  
	
   

  	
  31st Business Committee

  
	
   

  	
   

  
	
  ATTEST:

  	
   

  
	
   

  	
   

  
	
  /s/

  	
   

  	
   

  
	
  Secretary

  	
   

  
	
   

  	
   

  
	
   

  	
  SOUTHWEST CASINO AND HOTEL CORP.

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Jeffrey S. Halpern

  
	
   

  	
   

  	
  Jeffrey S. Halpern,
  Chairman of the Board

  
	
   

  	
   

  	
  and Chief Executive
  Officer

  
				

 

 

The foregoing
AMENDMENT NO. 2 TO THIRD AMENDED AND RESTATED GAMING MANAGEMENT AGREEMENT is
hereby approved this          day of
               ,
1999.

 

	
   

  	
  NATIONAL INDIAN GAMING COMMISSION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Its

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