Document:

Exhibit 10.5

 

MASTER VIDEO LOTTERY TERMINAL CONTRACT

 

by and between the

 

Division of Lotteries of the Rhode Island
Department of Administration

 

and

 

UTGR, Inc.

 

Dated: July 18, 2005

 

     

     

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	1.	Definitions	2
	 	 	 
	2.	Effective Date and Term	6
	 	 	 
	3.	Allocation of Video Lottery Net Terminal Income	7
	 	 	 
	4.	Investment and Employment within the State	8
	 	 	 
	5.	Advisor Committee	12
	 	 	 
	6.	Slippage	13
	 	 	 
	7.	State Access/Egress Support	15
	 	 	 
	8.	Project Labor Agreement	15
	 	 	 
	9.	Limitation on Use of Lincoln Park and on Certain Activities of BLB and UTGR	15
	 	 	 
	10.	Use of Lottery System Infrastructure; Other State Services	16
	 	 	 
	11.	Breach by the Division; Termination	16
	 	 	 
	12.	Breach by UTGR; Termination	17
	 	 	 
	13.	Effect of Termination	19
	 	 	 
	14.	General	19

 

    	 	-i-	 

     

    

 

MASTER
VIDEO LOTTERY TERMINAL CONTRACT

 

This Master Video Lottery
Terminal Contract (this “Agreement”) is made as of July 18, 2005, by and between the Division of Lotteries
of the Rhode Island Department of Administration (the “Division”), an agency of the State of Rhode Island with
its principal address at 1425 Pontiac Avenue, Cranston, Rhode Island 02920, and UTGR, Inc. (“UTGR”), a Delaware
corporation with its principal office located at 1600 Louisquisset Pike, Lincoln, Rhode Island 02865.

 

WITNESSETH:

 

WHEREAS, the Division
is established to conduct a lottery in the State of Rhode Island for the benefit of the State of Rhode Island and its residents;

 

WHEREAS, the Division’s
predecessor issued a video lottery terminal license to Lincoln Park, Inc. (“LPI”) (f/k/a Burrilville Racing Association,
Inc.), a Rhode Island corporation d/b/a Lincoln Park, a gaming and entertainment facility located at Lincoln Park, 1600 Louisquisset
Pike, Lincoln, Rhode Island;

 

WHEREAS, LPI has been
indicted by the United States of America acting by and through the United States Attorney for the District of Rhode Island for
alleged violations under the Hobbs Act of 1946, and if convicted, could be subject to fines aggregating up to US$3,000,000;

 

WHEREAS, LPI is one
of various, indirect wholly-owned United States subsidiaries of Wembley plc, a track-based gaming company headquartered in London
and operating in the United Kingdom and the United States;

 

WHEREAS, BLB Investors,
L.L.C., a Delaware limited liability company, has proposed to acquire indirectly, through a wholly-owned affiliate, all of the
U.S. subsidiaries of Wembley plc, both direct and indirect, including UTGR;

 

WHEREAS, due to the
indictment against LPI, a condition of the acquisition by BLB Investors, L.L.C. of the U.S. subsidiaries of Wembley plc is the
simultaneous reorganization of Wembley plc’s interests in Lincoln Park, principally the separation from Wembley plc’s
U.S. subsidiaries of any potential liability for, and associated costs of, litigation in the LPI indictment matter, as well as
amounts held in escrow pursuant thereto and the transfer of Lincoln Park and related licenses to UTGR;

 

WHEREAS, the reorganization
contemplates, among other things, the merger of LPI with and into LPRI LLC, a Rhode Island limited liability company, in a transaction
intended to qualify as a tax-free liquidation of LPI with and into its sole shareholder, UTGR, as well as the subsequent distribution
by LPRI LLC of all of its business, assets and liabilities to UTGR, with the exception of the potential liability for, and associated
costs of, litigation in the LPI indictment matter, which liability and costs shall be retained by LPRI LLC;

 

     

     

    

 

WHEREAS, following
the aforesaid reorganization and indirect acquisition by BLB Investors, L.L.C. of the U.S. subsidiaries of Wembley plc, BLB Investors,
L.L.C. shall have no direct or indirect interest in LPRI LLC;

 

WHEREAS, a further
condition of the acquisition by BLB Investors, L.LC. of the U.S. subsidiaries of Wembley plc is the entry by UTGR and the relevant
Rhode Island legislative and regulatory authorities of a long-term revenue-sharing contract in relation to the business conducted
at Lincoln Park, including the transfer to UTGR of the video lottery terminal license previously issued to LPI; and

 

WHEREAS, after discussions
with BLB Investors, L.L.C., the Division has reached this Agreement with UTGR in consideration of the benefits to be realized by
the Division and the State of Rhode Island pursuant to the aforementioned acquisition and under this Agreement, among them, the
construction, development and investment of not less than $125,000.000 in respect of Lincoln Park, the expected increase in lottery
revenues as a result thereof, and the ensuing increase in the funds available to the State of Rhode Island and its residents; and

 

WHEREAS, this Agreement
has been duly authorized pursuant to the laws of the State of Rhode Island as set forth in the Act Enabling the Division of Lotteries’
Entry into A Video Lottery Terminal Contract with UTGR, Inc., Rhode Island General Laws, [Senate 970 Substitute B and House 6285
Substitute A as amended as passed by the General Assembly and signed into law by Governor on July 15, 2005] (the “Act”).

 

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

 

1.            Definitions.

 

The capitalized terms
set forth below have the corresponding meanings when used in this Agreement. Other capitalized terms are defined in this Agreement
when they are first used.

 

“Act”
has the meaning set forth in the Preamble.

 

“Acquisition”
means the acquisition by BLB or a BLB Affiliate of the Wembley US Group.

 

“Additional
Authorized VLT’s” has the meaning set forth in Section 3.1 hereof.

 

“Adjusted
Base Year Net Terminal Income” means, for the first Subsequent Year, the product of (a) the Net Terminal Income at Lincoln
Park for the twenty-four (24) calendar months ending on the last day of the calendar month preceding the opening of a new Gaming
Facility in Rhode Island, divided by two (2), and (b) one (1) plus the CPI Adjustment. For each Subsequent Year after the first
Subsequent Year, the Adjusted Base Year Net Terminal Income shall be the product of (x) the Adjusted Base Year Net Terminal Income
for the previous Subsequent Year and (y) one (1) plus the CPI Adjustment.

 

    	 	-2-	 

     

    

 

“Advisory
Committee” has the meaning set forth in Section 5, below.

 

“Annual Growth
Rate In Net Terminal Income” means the percentage in increase or decrease in Net Terminal Income for any year during
the Term as compared to the immediately preceding year during the Term.

 

“Base Year”
means the twelve (12) consecutive calendar months preceding the calendar month in which a new Gaming Facility opens in Rhode Island.

 

“Benchmark
Excess” means, for any Subsequent Year an amount equal to the positive difference, if any, between the (i) sum of (x)
the product of the Adjusted Base Year Net Terminal Income for such year and the Blended Rate and (y) the Benchmark Excess for the
immediately Preceding Subsequent Year, and (ii) the actual Net Terminal Income received by UTGR for the Subsequent Year for which
the calculation is being made.

 

“BLB”
means BLB Investors, L.L.C., a Delaware limited liability company.

 

“BLB Affiliate”
means any entity controlling, controlled by or under common control with BLB.

 

“Blended Rate”
for UTGR means [(number of Existing Authorized Terminals in operation for the calculation period/total number of video lottery
terminals in operation for the calculation period) x .2885]; plus [(number of Additional Authorized Terminals in operation for
the calculation period/total number of video lottery terminals in operation for the calculation period) x .2600].

 

“Blended Rate
Adjustment Date” means the first date of any period with respect to which there is an adjustment in the Blended Rate
required or permitted under this Agreement.

 

“Business”
means the ownership, operation and development of Lincoln Park.

 

“Business
Day” means a day on which Rhode Island regulatory authorities are open for regular business, provided such day is not
a Saturday or Sunday.

 

“CPI Adjustment”
means the annual change in the December Consumer Price Index-All Urban Consumers (CPI-U) using the same base period for the immediately
preceding year published by the Bureau of Labor Statistics of the United States Department of Labor or its successor agency (or
if such Index is no longer published, an index agreed upon between UTGR and the Division) from the Index for the December immediately
preceding the opening of a new Gaming Facility in Rhode Island, not to exceed a three percent (3%) change in any year.

 

“DBR”
means the Rhode Island Department of Business Regulation.

 

“Development
Phase” has the meaning set forth in Section 4.3 hereof.

 

“Division”
has the meaning set forth in the Preamble.

 

“Division
Breach” has the meaning set forth in Section 11, below.

 

    	 	-3-	 

     

    

 

“Effective
Date” has the meaning set forth in Section 2.1, below.

 

“Existing
Authorized VLT’s” has the meaning set forth in Section 3.1 hereof.

 

“Extension
Date” has the meaning set forth in Section 2.2, below.

 

“Force Majeure
Event” has the meaning set forth in Section 14.1, below.

 

“GAAP”
has the meaning set forth in Section 4.1 hereof.

 

“Gambling
Game” means any game having the attributes of chance, consideration and prize including without limitation any banking
or percentage game located within a Gambling Facility played with cards, dice, dominoes, or any electronic, electrical or mechanical
device or machine for money, property, or any representation of value.

 

“Gaming Facility”
means any facility or venue, offering one or more Gambling Games, that is physically located, in whole or in part, in the State,
but excluding: (1) bingo, (2) facilities or venues that only on an occasional basis host such games and then only for the benefit
of religious, charitable, educational or fraternal organizations, volunteer fire and rescue companies or other similar non-profit
organizations, and (3) facilities or venues operated pursuant to IGRA, where such operation is authorized without State Consent
and does not operate any Gambling Games other than Gambling Games specifically authorized under Rhode Island law as of the effective
date of the Act unless the right of such Gambling Facility to operate Gambling Games other than those specifically authorized by
Rhode Island Law as of the effective date of the Act is not derived from an act of the Rhode Island General Assembly, amendment
to the Rhode Island Constitution, or a voter referendum pursuant to the Rhode Island Constitution permitting the operations of
such other Gambling Games elsewhere in the State other than Lincoln Park or Newport Grand.

 

“IGRA”
means the Indian Gaming Regulatory Act, 25 U.S.C. Sections 2701-2721- 18 U.S.C. Sections 1166-1168, as may be hereafter
amended from time to time.

 

“Institutional
Lender” means any bank, savings and loan association, insurance company, investment company registered under the Investment
Company of 1940, or any other organization which is a “qualified institutional buyer” within the meaning Section 7(a)
of Rule 144A of the Rules and Regulations of the United States Securities and Exchange Commission.

 

“Investment
Requirement” has the meaning set forth in Section 4.1, below.

 

“Investment
Requirement Assets” has the meaning set forth in Section 4.1, below.

 

“Licensed
Video Lottery Retailer” has the meaning given the term in Rhode Island General Laws § 42-61.2-1(2) as may be
hereafter amended from time to time.

 

“Lincoln Park”
means the Lincoln Park Gaming and Entertainment Facility located at 1600 Louisquisset Pike, Lincoln, Rhode Island.

 

“LPI”
has the meaning set forth in the Preamble.

 

    	 	-4-	 

     

    

 

“Lincoln Park
Indictment” means Indictment No. CR-03-081ML filed by the United States of America acting by and through the United States
Attorney for the District of Rhode Island, for alleged violations under the Hobbs Act of 1946.

 

“LPRI”
shall mean LPRI, LLC, a Rhode Island limited liability company.

 

“Net Terminal
Income” means, in relation to a Video Lottery Terminal, has the same meaning given to the term as is in Section 42-61.2-1(3)
of the General Laws of Rhode Island as in effect on the July 15, 2005.

 

“Pari-Mutuel
Licensee” has the meaning given the term in Rhode Island General Laws § 42-61.2-1(4) as may be hereafter amended
from time to time.

 

“Phase Milestone
Completion Date” has the meaning set forth in Section 4.3 hereof.

 

“Project Labor
Agreement” has the meaning set forth in Section 8, below.

 

“Reorganization”
means the proposed restructuring of Wembley’s interests in LPI principally the separation from the Wembley US Group of any
potential liability for, and associated costs of, litigation in the LPI Indictment, as well as amounts held in escrow pursuant
thereto, which reorganization contemplates among other things, the merger of LPI with and into LPRI in a transaction intended to
qualify as a tax-free liquidation of LPI with and into its sole shareholder, UTGR, as well as the subsequent distribution by LPRI
of all of its business, assets and liabilities to UTGR with the exception of the potential liability for, and associated costs
of, litigation in the LPI Indictment, which liability and costs shall be retained by LPRI.

 

“Satisfaction
Date” has the meaning set forth in Section 2.2, below.

 

“Slippage
Protection” means for any Subsequent Year (other than the first Subsequent Year occurring after the Base Year), whenever
the Net Terminal Income is less than the Adjusted Base Year Net Terminal Income, the Blended Rate shall be increased to that rate
that would have eliminated the resulting adverse impact from that difference upon UTGR; provided, however, that for any Subsequent
Year (including the first Subsequent Year) in which an amount equal to twice the first six (6) months’ Net Terminal Income
for such Subsequent Year shall not exceed ninety percent (90%) of the Adjusted Base Year Net Terminal Income for such Subsequent
Year, the aforesaid increase in the Blended Rate shall occur beginning in the seventh (7th) month of such Subsequent
Year.

 

“State”
means the State of Rhode Island.

 

“State Consent”
means the failure by the State to exhaust all of its administrative and judicial remedies to oppose the taking or conversion of
land in Rhode Island into trust under 25 U.S.C. Section 465 where such taking or conversion is for the purpose of gaming wider
IGRA.

 

“Subsequent
Year” means each consecutive twelve (12) -month period ending on the last day of the calendar month preceding an anniversary
of the opening of a new Gaming Facility.

 

    	 	-5-	 

     

    

 

“Term”
means the Initial Term set forth in Section 2.4 and any Extension Term set forth in Section 2.5, below.

 

“UTGR”
means UTGR, Inc., a Delaware corporation and member of the Wembley US Group, and, upon the Effective Date of the Acquisition, a
direct or indirect wholly-owned subsidiary of BLB, and including any UTGR Business Affiliate. References herein to “UTGR”
shall include its permitted successors and assigns under this Agreement.

 

“UTGR Breach”
has the meaning set forth in Section 12.1, below.

 

“UTGR Business
Affiliate” means any corporation, trust, partnership, joint venture or any other form of business entity that controls,
is controlled by or is under common control with, UTGR.

 

“Video Lottery
Games” has the meaning given the term in Rhode Island General Laws § 42-61.2-1(6) and as operated by the Division
on the date hereof.

 

“Video Lottery
Terminal” or “VLT” has the meaning given the term “Video Lottery Terminal” in Rhode Island
General Laws § 42-61.2-1(7) as in effect on the date the Act became law.

 

“Wembley”
means Wembley plc, a track-based gaming company headquartered in London and operating in the United Kingdom and the United States.

 

“Wembley US
Group” means the U.S. subsidiaries of Wembley plc in existence on the Effective Date.

 

2.            Effective
Date and Term.

 

2.1           Subject
to Section 2.2 and 2.3 hereof, this Agreement shall not be effective until the Business Day on or by which all of the following
conditions are satisfied (the “Effective Date”):

 

A.           the
closing of the Acquisition, including without limitation, the execution of definitive transaction documents by and between BLB,
Wembley, and any of their respective affiliates, obtaining the consent and approval thereof by the appropriate Rhode Island regulatory
authorities, and the Acquisition being wholly unconditional under the laws of the United States;

 

B.           this
Agreement has been signed by the Director or Acting Director of the Division;

 

C.           the
completed transfer to UTGR by LPI of the Video Lottery Terminal License issued to LPI by the Division, including the approval by
the Division of UTGR as a Licensed Video Lottery Retailer as set forth in the Act;

 

D.           the
completed transfer to UTGR by LPI of the pari-mutuel license issued to LPI by the DBR, including the approval by the DBR of UTGR
as a Pari-Mutuel Licensee; and

 

E.           the
completion of the Reorganization.

 

    	 	-6-	 

     

    

 

2.2           Notwithstanding
the provisions of Section 2.1, if any of the conditions in Section 2.1 A. through E. has not been satisfied by July 22, 2005
(the “Satisfaction Date”), the parties shall extend the date of fulfillment of the conditions set forth in Section
2.1 until July 31, 2005 (the “Extension Date”), and the Business Day on or by which all of the foregoing
conditions are satisfied, if on or prior to the Extension Date, shall be the “Effective Date.”

 

2.3           If
any of the conditions set forth in Section 2.1 is not fulfilled by the Satisfaction Date (or the Extension Date, as applicable),
this Agreement shall not come into effect. Neither party shall have any claim against the other as a result of the non-fulfillment
of any of the conditions set forth in Section 2.1.

 

2.4           The
Initial Term of the Agreement shall be from the Effective Date through and including the fifth (5th) anniversary of
the Effective Date.

 

2.5           UTGR
shall have the right and option to extend the term of this Agreement for two successive five year periods (the “First Extension
Term” and the “Second Extension Term” respectively) by giving notice to the Division at least ninety (90) days
prior to the expiration of the Initial Term or the First Extension Term as applicable; provided, however, that the following conditions
are met at the time of the exercise of the option:

 

A.           UTGR
shall not be in default of any material term or condition of this Agreement that has not been cured within the applicable grace
periods; and

 

B.           UTGR
shall certify to the Division that (i) there are 1,300 full-time equivalent employees at Lincoln Park on the date of the exercise
and (ii) for the one-year period preceding the date the option is exercised, there had been 1,300 full-time equivalent employees
on average, as confirmed by the Rhode Island Department of Labor and Training.

 

For purposes of this Section 2.5, the term
“full-time equivalent employee” means any employee who (i) works a minimum of 30 hours per week, or two or more part-time
employees whose combined weekly hours equal or exceed 30 hours per week, and (ii) earn no less than one hundred fifty percent (150%)
of the hourly minimum wage prescribed by Rhode Island law. In determining the number of employees, there shall be included all
employees employed by UTGR and employees at Lincoln Park employed by any lessee, concessionaire or other third parties operating
at Lincoln Park but excluding any state employees.

 

3.            Allocation
of Video Lottery Net Terminal Income.

 

3.1           As
a Licensed Video Lottery Retailer, UTGR is hereby granted a license during the Term for 4,752 Video Lottery Terminals at Lincoln
Park, consisting of 3,002 existing authorized Video Lottery Terminals, and replacements thereof from time to time (the “Existing
Authorized VLT’s”) and 1,750 additional Video Lottery Terminals, and replacements thereof from time to time, as
are hereby (and pursuant to the enabling legislation for this Agreement) authorized (the “Additional Authorized VLT’s”).

 

    	 	-7-	 

     

    

 

3.2           With
respect to the Existing Authorized VLT’s, twenty-eight point eighty-five percent (28.85%) of the Net Terminal Income attributable
to the Existing Authorized VLT’s shall be paid to UTGR.

 

3.3           With
respect to the Additional Authorized VLT’s, twenty-six percent (26%) of the Net Terminal Income attributable to the Additional
Authorized VLT’s shall be paid to UTGR.

 

3.4           For
purposes of accounting and administration of the allocation set forth in Sections 3.2 and 3.3 above, total Net Terminal Income
from Lincoln Park will not be segregated between the Existing Authorized VLT’s and the Additional Authorized VLT’s,
as each Existing Authorized VLT and Additional Authorized VLT will be presumed to generate its pro rata share (based on the total
number of Video Lottery Terminals in operation at Lincoln Park from time to time) of Lincoln Park’s total Net Terminal Income.
Thus, by way of illustration only, without limitation on the foregoing, at such time as 4,000 Video Lottery Terminals are in operation,
UTGR’s share of the total Net Terminal Income from the entire Lincoln Park facility would be calculated as follows:

 

(Total Net Terminal Income) X [(3,002/4,000) X 28.85%)
– (Total Net Terminal Income) X (998/4,000) X 26.00%] = total Net Terminal Income due to UTGR.

 

3.5           Net
Terminal Income from Lincoln Park shall be paid to the Division daily and UTGR’s share thereof shall be calculated on a daily
basis. UTGR’s compensation hereunder shall be due and payable by the Division in a manner consistent with the existing practice
including, without limitation, the option for UTGR to post a bond in order to receive more frequent payments.

 

4.            Investment
and Employment within the State.

 

4.1           UTGR
(and/or one or more UTGR Business Affiliates) will invest in the aggregate, within three (3) years next following the Effective
Date (but subject to extension as set forth in Section 4.2 hereof), at least $125,000,000 of total project costs, including all
“hard costs” and allowable “soft costs,” in or related to improvements, renovations and additions to Lincoln
Park and to appurtenant real and personal property to Lincoln Park (the “Investment Requirement”), in connection
with (i) additions, renovations, and/or improvements to Lincoln Park and to appurtenant real or personal property to Lincoln Park,
including, without limitation, improvements designed and constructed to provide access to Lincoln Park, (ii) performing UTGR’s
obligations under this Agreement, and (iii) otherwise in connection with UTGR’s business operations in Rhode Island (“Investment
Requirement Assets”). For the purposes of this section, “hard costs” means all costs that in accordance with
Generally Accepted Accounting Principles (“GAAP”) are appropriately chargeable to the capital accounts of UTGR or would
be so chargeable either with an election by UTGR or but for the election of UTGR to expense the amount of the item, and “soft
costs” shall mean all other costs appropriately chargeable to the Investment Requirement which are not hard costs, in accordance
with GAAP. In determining whether the investment requirement has been satisfied, soft costs in excess of ten million dollars ($10,000,000)
shall be excluded.

 

    	 	-8-	 

     

    

 

4.2           The
Division may terminate this Agreement if UTGR, and UTGR Business Affiliates, collectively, fail to fulfill the aggregate Investment
Requirement pursuant to Section 4.1 hereof unless such failure is attributable to (i) the failure to receive the necessary local
approvals in connection with the improvements, construction and other activities enumerated in Section 4.1, notwithstanding the
use of UTGR’s commercially reasonable efforts to obtain such approval or (ii) the occurrence of one or more Force Majeure
Events beyond the control of UTGR and UTGR Business Affiliates, or (iii) delays attendant to any litigation, including without
limitation the LPI Indictment and any litigation brought by any third party (other than UTGR except where UTGR is contesting the
denial of any permits required to be obtained in order to construct the improvements) contesting in any way the construction of
the improvements or having the effect of delaying the expenditure of the Investment Requirement and which litigation is ultimately
resolved in a manner allowing the expenditure of the Investment Requirement to proceed. The aforesaid three year period for satisfaction
of the Investment Requirement (and the Phases I, II and III Milestone Completion Dates, as applicable) shall be extended by the
number of days delay occurring as a result of any one or more of the events described in clauses (i), (ii) or (iii) of the preceding
sentence.

 

4.3           Development
Milestones. UTGR hereby undertakes to make the Investment Requirement and construct and place in service the Investment Requirement
Assets in the following development phases (the “Development Phases”) within the completion dates (each a “Phase
Milestone Completion Date’’) subject to any Force Majeure or other event of a nature described in Section 4.2 above
operating to cause a delay in such Phase Milestone Completion Date. The development and construction within each Development Phase
planned by UTGR is as follows:

 

A.           Phase
I. Phase I as described in Exhibit 4.3(A) consists of the removal of the existing porte cochere on the western side and the
construction of a new porte cochere, the relocation of the greyhound dog betting and related facilities to the grandstand area,
construction of a new approximately 14,000 square foot facility to service back office and back of the house operations, renovation
of one-half of the second floor for additional gambling such that at the end of the Phase I construction, the VLT capacity shall
be 3,500 units. While the Phase I Milestone Completion Date is targeted by UTGR to occur at the expiration of six (6) months following
the Effective Date, such Phase I Milestone Completion Date shall in any event occur by the first anniversary of the Effective Date,
subject, however, to extension as set forth in Section 4.2 or in this Section 4.3 above or in Section 4.3 D. below.

 

B.           Phase
II. Phase II as described in Exhibit 4.3(B) shall consist of the elimination of the existing entrance on the northerly side
of the building, the construction of two new structures, one consisting of approximately 135,000 square feet and another consisting
of approximately 40,000 square feet which will permit the operation of 4,750 VLT’s and supporting amenities. It will additionally
contain a buffet and two specialty restaurants, and an all-purpose space of approximately 29,000 square feet. While the Phase II
Milestone Completion Date is targeted by UTGR to occur by January, 2007, such Phase II Milestone Completion Date shall in any event
occur by the second anniversary of the Effective Date, subject, however, to extension as set forth in Section 4.2 or in this Section
4.3 above or in Section 4.30 below.

 

    	 	-9-	 

     

    

 

C.           Phase
III. Phase III as described in Exhibit 4.3(C) will consist of a renovation of the first floor and the back of the house of
operations, completion of the build out of certain areas adjacent to the existing dog racing grandstand, conversion of most of
the third floor to back of the house operations and a reconfiguration of substantially all of the Video Lottery Terminal locations
on the first floor. While the Phase III Milestone Completion Date is targeted by UTGR to occur by thirty-four (34) months following
the Effective Date, such Phase III Milestone Completion Date shall in any event occur by the third anniversary of the Effective
Date, subject, however, to extension as set forth in Section 4.2 or in this Section 4.3 above or in Section 4.30 below.

 

D.           UTGR
shall have the right to modify the projects within any phase without the consent of the Division if such modification does not
materially change the number of video lottery terminals available or the location of any VLT’s at the end of such Development
Phase or does not change the Phase Milestone Completion Date by more than sixty (60) days (provided, however, that UTGR shall use
reasonable efforts to keep the Division apprised of each modification from time to time). UTGR shall have the right from time to
time to make such modifications to any Development Phase in addition to those permitted by the preceding sentence subject to the
approval of the Division which approval shall not be unreasonably withheld or delayed; provided that in no event shall any change
in a Phase Milestone Completion Date be permitted if the last Phase Milestone Completion Date would be more than three years after
the Effective Date subject in all events to Force Majeure delays or any other event justifying a delay as referenced in Section
4.2 above or in the preceding provisions of this Section 4.3. Within ten (10) Business Days of the occurrence of any Force Majeure
Event, UTGR shall give notice thereof to the Division, such notice to identify the Force Majeure Event and the expected delay period.
UTGR shall further advise the Division as to the termination of any Force Majeure delay period within ten (10) Business Days of
the last day of such period.

 

4.4           On
or before that date which is ninety (90) days after each Phase Milestone Completion Date and in all events within ninety (90) days
after the third anniversary of the Effective Date (as such three-year period may have been extended as set forth in Section 4.2
above), UTGR shall submit to the Division UTGR’s certification confirmed by a certified public accounting firm reasonably
acceptable to the Division and using procedures approved by the Division not inconsistent with GAAP, providing its professional
opinion, on behalf of itself and its applicable UTGR Business Affiliates as to the aggregate amounts expended allowed between hard
costs and allowable soft costs in respect of the Investment Requirement, so as to enable the Division to measure UTGR’s Investment
Requirement Assets and to confirm UTGR’s compliance with its obligation under Section 4.1. UTGR shall pay all costs of obtaining
and preparing the professional opinion obtained from the certified public accounting firm required by this section.

 

4.5           UTGR
and its officers, directors, and owners of more than five percent (5%) of the equity interests in UTGR and BLB Investors, L.L.C.,
UTGR’s ultimate parent, agree to submit to annual license renewal process as established by the Division and DBR through
which they each will be subject to criminal background checks and required to reaffirm that there have been no material adverse
changes to applications on file with either the Division or DBR.

 

    	 	-10-	 

     

    

 

4.6           UTGR
agrees to comply with current rules and regulations of the Division and DBR as well any additions or modifications to such rules
as may be adopted from time to time.

 

4.7           UTGR
agrees to adopt and implement (within 180 days from the Effective Date) industry “best practice” codes standards and
procedures relating to the business and operations at Lincoln Park, including, but not limited to, such areas as: accounting and
internal controls; financial reporting and audited financial statements; internal audit and compliance; record retention; Gaming
Facility Revenue and Net Terminal Income computation; business ethics; personnel and employee policies and practices; cash handling
and management; surveillance and security; risk and facility management; asset preservation; corporate governance and legal compliance;
vendor and contractor selection; and such other areas as shall be deemed appropriate by the Division to insure that UTGR is in
compliance with all applicable state laws and regulations.

 

4.8           UTGR
agrees to submit to periodic examinations by the Division with respect to the business and operations of Lincoln Park;

 

4.9           UTGR
agrees to give the Division access to all its books, records and facilities at Lincoln Park as well as the entities that control
UTGR including UTGR’s ultimate parent BLB Investors, L.L.C.

 

4.10         UTGR
agrees that if a gaming license or permits applied for or granted to UTGR or any of its principals in another is jurisdiction is
revoked or denied, the Division may revoke or deny UTGR’S permit in Rhode Island, if, after an independent investigation
the Division agrees with the conclusions reached in such other jurisdiction; provided, however, if such revocation or denial involved
a principal of UTGR and not UTGR itself, and UTGR causes the affected principal to divest its interest in UTGR, and such principal
shall no longer be affiliated with UTGR through any affiliate or otherwise, then the divestiture of such affected principal may
eliminate the need for any independent investigation by the Division and the revocation or denial of the divested principal in
the other jurisdiction shall not be sole basis for the revocation or denial by the Division of UTGR’s License in Rhode Island.

 

4.11         UTGR
agrees to cooperated with the Division to ensure the soundness of the business and operations at Lincoln Park.

 

4.12         Within
thirty (30) days of the Effective Date, UTGR shall maintain the insurance coverage required by Section 31 of Attachment A of the
State of Rhode Island Office Of Purchasing General Conditions of Purchase. In addition, UTGR and the Division shall obtain business
interruption insurance naming the Division as an additional insured providing coverage equal to no less than nine (9) months of
the State’s share of Net Terminal Income for the twelve (12) months preceding the date such insurance policy and any renewal
or replacement thereof takes effect; provided, however, that such obligation shall be conditioned on the availability of such insurance
at commercially reasonable rates and UTGR’s cost for such insurance shall not exceed $150,000 per annum, adjusted by the
CPI Adjustment over the Term.

 

    	 	-11-	 

     

    

 

4.13         UTGR
agrees that (A) it will not unilaterally cease operations (except where such cessation is caused by a requirement to comply with
applicable laws, rules or regulations, or where the same is caused by a Force Majeure Event or by the making of improvements or
repairs) and (B) in the event it breaches this Agreement and thereafter as a result of such breach the Division shall lawfully
elect to terminate this Agreement in accordance with the terms of this Agreement, it will continue to operate the Lincoln Park
as requested by the Division and to cooperate with the Division in finding a successor licensee on terms and conditions reasonably
acceptable to the Division and UTGR, but nothing in this Section 4.13 shall (C) obligate UTGR to transfer any of its assets to
any proposed successor licensee except on commercially reasonable terms and conditions or (D) impair the rights of any Institutional
Lender to UTGR or any UTGR Business Affiliate.

 

4.14         UTGR
agrees to reimburse and pay to the Division (or to such entities as the Division may identify) all reasonable costs and expenses
associated with the Division’s oversight over and review of the business or operations at Lincoln Park, including such items
as ongoing auditing, legal, investigation services and other related matters; it being expressly understood and agreed that the
Division will endeavor to reach an agreement with DBR that where both agencies are involved in any such oversight or review that
both the Division and DBR will coordinate their activities to minimize the costs to be reimbursed by UTGR.

 

5.            Advisor
Committee.

 

UTGR shall establish
an Advisory Committee (the “Advisory Committee”) the purpose of which shall be to consider and advocate programs
and initiatives from time to time to benefit all constituencies with an interest in the continued economic success of Lincoln Park
and the Business; and in particular, the recommendation of steps to coordinate the operations of Lincoln Park and the activities
of the Business with State and municipal agencies to maximize the effectiveness of joint marketing campaigns designed to benefit
both the Business and other State based businesses. The Advisory Committee shall meet quarterly, shall select from one of its members
a chairperson and shall adopt by-laws to govern its meetings. The Advisory Committee shall consist of seven (7) members as follows:
One (1) member representing UTGR or a UTGR Business Affiliate appointed by UTGR; one (l) member representing the town of Lincoln,
Rhode Island, appointed by the Lincoln Town Administrator with the advice and consent of the Lincoln Town Council; one (l) member
representing the Rhode Island Convention Center Authority which may be either a member of the Board of Commissioners or a designee
appointed by the Board; one (1) member representing the Greater Providence Chamber of Commerce appointed by that entity; one (1)
member representing the Northern Rhode Island Chamber of Commerce, appointed by that entity; and one (1) member representing the
Providence-Warwick Convention Visitors Bureau appointed by that entity; and one (l) public member appointed by the Governor.

 

    	 	-12-	 

     

    

 

6.            Slippage.

 

6.1           In
view of the current and prospective economic benefits afforded to the State and to all other parties benefiting from the commercial
activities operated at Lincoln Park, and in order to better assure, throughout the Term, that Lincoln Park and the Business conducted
thereon will be able to compete fairly with any other Gaming Facilities operating from time to time within the State, during the
Term, the State, including any agency or instrumentality thereof, and the Division, do hereby expressly pledge and agree that the
owner of Lincoln Park and the Business operated thereon shall be afforded Slippage Protection with any other Gaming Facility except
as currently exists for Lincoln Park and Newport Jai Alai under the provisions of Rhode Island General Laws 42-61.2 7(a)(2) as
currently in effect if:

 

(i)          During
the Term of this Agreement, a new Gaming Facility located wholly or partially within the State opens to the public for business;

 

(ii)         Neither
UTGR nor any UTGR Business Affiliate is involved in any way in the operation or ownership of such new Gaming Facility; and

 

(iii)        UTGR
is not in default of any material covenant, term or condition of this Agreement that has not been cured within the applicable cure
periods set forth in Section 12 of this Agreement.

 

6.2           Application
of Slippage Protection.

 

A.           Beginning
with the first Subsequent Year and thereafter in each Subsequent Year, within thirty (30) days after the close of the first six
(6) months of such Subsequent Year, UTGR shall submit to the Division a calculation comparing its Adjusted Base Year Net Terminal
Income for such year to the annualized actual Net Terminal Income for the first six (6) months of such year and its proposed adjustment
in the Blended Rate together with such supporting documentation as the Division shall reasonably require. If twice the actual Net
Terminal Income for the first six (6) months shall be less than ninety percent (90%) of the sum of the Adjusted Base Year Net Terminal
Income and any Benchmark Excess for the immediately preceding Subsequent Year, then Blended Rate for the second six (6) months
shall be equal to the fraction, expressed as percentage, the numerator of which is the positive difference, if any, between (x)
the sum of (i) the product of the Adjusted Base Year Net Terminal Income for the Subsequent Year for which the calculation is being
made and the Blended Rate and (ii) the Benchmark Excess for the immediately preceding Subsequent Year and (y) the product of the
actual Net Terminal Income for such six month period and the Blended Rate, and denominator of which is the actual Net Terminal
Income for such six month period. Any such adjustment in the Blended Rate shall be effective ten (10) days after the submission
by UTGR in accordance with this Section 6.2 A. and shall be retroactive to the Blended Rate Adjustment Date notwithstanding any
objections the Division may have with respect to the calculation thereof, but subject nevertheless to the Division’s right
to dispute the same as herein provided. The Division shall make payment for period between the Blended Rate Adjustment Date and
the effective date of such adjustment within twenty (200 calendar days.

 

B.           Within
sixty (60) days of the close of each Subsequent Year, UTGR shall certify to the Division, with such supporting documentation as
the Division shall reasonably require, the amount of its share of Net Terminal Income for such Subsequent Year, the amount of Benchmark
Excess, if any, and its proposed adjustment in the Blended Rate. In any Subsequent Year where there is a Benchmark Excess, the
Blended Rate for the next Subsequent Year shall be equal to a fraction, expressed as a percentage, the numerator of which shall
be (i) the sum of the product of the Adjusted Base Year Net Terminal Income for such Subsequent Year and the Blended Rate and (ii)
the Benchmark Excess for the immediately preceding Subsequent Year and the denominator of which shall the actual Net Terminal Income
for the immediately preceding Subsequent Year. Any adjustment in the Blended Rate required by the UTGR submission shall be effective
ten (10) days after the submission by UTGR in accordance with this Section 6.2 B. and shall be retroactive to the Blended Rate
Adjustment Date notwithstanding any objections the Division may have with respect to the calculation thereof, but subject nevertheless
to the Division’s right to dispute the same as herein provided.

 

    	 	-13-	 

     

    

 

6.3           In
addition to the foregoing, commencing with the beginning of the 11th Year of the Term of this Agreement and each year
thereafter, in addition to the Slippage Protection provided in the foregoing Section 6.2, the Blended Rate shall be adjusted by
twenty-five percent (25%) of the difference between (i) the annual change in the December Consumer Price Index all relevant consumers
(CPI-U) for the immediate preceding year as published by the Bureau of Labor Statistics of the United States Department of Labor,
using the same base year (and in the event that such Index shall no longer be published, UTGR and the Division agree to use such
index that most closely approximates the Index as it was in effect immediately prior to the succession of publication) and (ii)
the Annual Growth Rate in Net Terminal Income for the immediately preceding year; provided, however, that in no case shall the
annual adjustment increase or decrease the Blended Rate as the same may have been adjusted for Slippage Protection as provided
for in Section 6.2 by more than one percent (1%). Within thirty (30) days after the publication of the December Consumer Price
Index, UTGR shall submit to the Division a calculation of any adjustment to be made to the Blended Rate as required by this Section
6.3 together with such reasonable supporting documentation as the Division may require together with a request to adjustment in
the Blended Rate. Any adjustment in the Blended Rate required by the UTGR submission shall be effective ten (10) days after the
submission by UTGR in accordance with this Section 6.3, notwithstanding any objections the Division may have to the calculation
thereof but subject to the Division’s right to dispute the same as herein provided. Any such adjustment shall be retroactive
to the Blended Rate Adjustment Date and in the case of a reduction in the Blended Rate, the Division shall make payment for the
period between the Blended Rate Adjustment Date and the date of the adjustment within twenty (20) calendar days and similarly to
the extent that there is an increase in the Blended Rate, UTGR shall make a payment to the Division of the amount due for the period
between the Blended Rate Adjustment Date and the effective date of the adjustment within twenty (20) calendar days.

 

6.4           In
the event that after any adjustment in the Blended Rate pursuant to either Section 6.2 or 6.3 there shall be a further adjustment
in the Blended Rate by agreement of UTGR and the Division, or as a result of a determination by an accounting firm chosen in accordance
with Section 6.5 hereof, such adjustment in the Blended Rate shall be retroactive to the Blended Rate Adjustment Date and any amounts
due to a party shall be paid within twenty (20) days.

 

6.5           In
the event of any dispute by the Division with respect to any adjustments in the Blended Rate required by Sections 6.2 and 6.3,
the Division shall give notice to UTGR within twenty (20) days of the receipt by the Division of UTGR’s submission. Upon
receipt of the Division’s objection, UTGR and the Division shall seek to mediate the same within thirty (30) days. If within
such thirty- (30) day period UTGR and the Division are unable to reach agreement, then within ten (10) days the Division shall
submit to UTGR a list of three (3) nationally-recognized accounting firms none of whom shall have been engaged by UTGR and within
the further ten (10) days, UTGR shall select one of such firms. Upon such selection, the matter shall be forthwith submitted by
UTGR and the Division to the selected firm for a decision within thirty (30) days. Each of UTGR and the Division agrees to submit
such information to such accounting firm as such accounting firm shall reasonably request. The decision of such accounting firm
shall be final and binding on the parties absent fraud or manifest error. The non-prevailing party shall pay the costs and expenses
of such accounting firm.

 

    	 	-14-	 

     

    

 

6.6           Except
as currently exists for Lincoln Park and Newpon Jai Alai under the provisions of Rhode Island General Laws 42-61.2-7(a)(2), the
State and the Division hereby expressly agrees not to enter into any agreement or adopt, modify or amend any law, rule or regulation
that would impair the rights of UTGR under the Act and this Agreement. Notwithstanding anything above to the contrary, nothing
in this Agreement shall limit the authority of the Division to enforce its rights under this Agreement or the State to enact, adopt
and enforce laws and regulations which are of general application and not specifically directed lo the operation of UTGR. Subject
to the foregoing, the State and the Division expressly pledge and agree with UTGR that the State and the Division will not limit,
alter, diminish or adversely impact the rights or economic benefits which vest in UTGR under the terms of this Agreement as authorized
by the Act.

 

7.            State
Access/Egress Support.

 

The State, acting through
the Rhode Island Department of Transportation or other relevant agency shall provide the necessary road cuts, bridges, tunnels,
highway widening, traffic lights and the related signage on and from Route 146 as may be necessary in order to improve access to
and egress from Lincoln Park (and as set forth in the final highway improvement plans provided by BLB or a BLB Affiliate on or
before June 30, 2006 that are approved by the Rhode Island Department of Transportation). Such construction shall be designed
so as to minimize the amount of motor vehicle traffic use and/or travel upon secondary roads and/or through residential neighborhoods
surrounding Lincoln Park. UTGR shall provide and pay for the design of such improvements and upon completion thereof and approval
by the State, the State shall take all reasonable steps to have such improvements included in the state transportation improvement
plan or to cause such improvements to be exempt therefrom. UTGR or a UTGR Business Affiliate shall pay all costs for the construction
of such improvements.

 

8.            Project
Labor Agreement.

 

Promptly following
the Effective Date, UTGR, or a UTGR Business Affiliate, as applicable, shall execute a Project Labor Agreement (the “Project
Labor Agreement”) for the construction of improvements to Lincoln Park, subject to all applicable construction industry
trade unions being parties thereto.

 

9.            Limitation
on Use of Lincoln Park and on Certain Activities of BLB and UTGR.

 

9.1           UTGR,
and any UTGR Business Affiliate, including BLB, agrees that during the Term, it will not construct and/or operate a hotel at or
in close proximity to Lincoln Park and it will not market Lincoln Park as a venue for conventions of the type which are part of
the target market for the Rhode Island Convention Center Authority, the Providence Performing Arts Center, the Veterans Memorial
Auditorium, including Broadway or Broadway type plays, or any theatrical performances of a musical, nonmusical or comedic variety.

 

    	 	-15-	 

     

    

 

9.2           Notwithstanding
the restrictions under Section 9.1 hereof, nothing shall prohibit UTGR from marketing to hold or host, or from holding or hosting
at Lincoln Park holiday fairs for local businesses, concerts, sporting and other entertainment events which are open generally
to the public and if held in an indoor events venue at Lincoln Park, with no stage house, and with a non-fixed sealing capacity
of such venue not to exceed 1,500 people for musical concerts and comedy shows, and 2.100 people for all other events.

 

9.3           Following
completion of the Investment Requirements, UTGR will maintain Lincoln Park in a manner substantially consistent with a first-class
racing operated elsewhere in the United States pursuant to regulations duly adopted pursuant to state law.

 

10.          Use
of Lottery System Infrastructure; Other State Services.

 

During the Term, the
Division will permit UTGR to use, and assist and cooperate with UTGR in its use of the Division’s Video Lottery Terminal
systems infrastructure subject to the rights of third parties, such use to be pursuant to mutually agreed upon terms and conditions.
UTGR shall provide access to the Division for purpose of the repair, maintenance and improvement of any such facilities during
normal business hours and after reasonable notice.

 

11.          Breach
by the Division; Termination.

 

11.1         The
occurrence of any of the following shall be a breach of this Agreement on the part of the Division (hereinafter a “Division
Breach”):

 

A.           the
breach by the Division of any provision of this Agreement other than a failure to pay amounts due to UTGR under this Agreement;

 

B.           the
failure on the part of the Division to pay when due any amount due UTGR under this Agreement;

 

C.           the
termination, revocation, suspension for sixty (60) consecutive days (or such longer period as may be agreed to by UTGR) of the
Division’s authority and/or ability to offer Video Lottery Games;

 

D.           the
State’s ability and/or authority to offer Video Lottery Games is materially adversely affected for sixty (60) consecutive
days (or such longer period as may be agreed to by UTGR);

 

E.           the
authority to offer within and throughout the State lottery games that involve on-line computer processing of the sale transaction
is granted to another department, commission, agency or other body of the State, whether or not the Division retains its authority
to offer such lottery games, unless such other department, commission, agency or other body of the State is a successor to the
Division, and maintains an exclusive right to operate Video Lottery Games for the State, and assumes in writing all of the Division’s
obligations hereunder at the time such authority is granted to such other department, commission, agency or other body.

 

    	 	-16-	 

     

    

 

11.2         UTGR
may (but shall not be obligated to) terminate this Agreement immediately by written notice to the Division, in the event a Division
Breach of the sort described in Section 11.1 C, D, and/or E and/or in the event of any of the following:

 

A.           the
breach by the Division of any provision of this Agreement other than a failure to pay amounts due to UTGR and the subsequent failure
on the part of the Division to cure such breach within thirty (30) days after written notice from UTGR specifying such breach;
provided, however, that if such breach is curable but cannot be cured within the aforesaid thirty (30) -day period, then said 30-day
period shall be extended for so long as the breaching party is proceeding with commercially reasonable diligence to effectuate
such cure; and/or

 

B.           the
failure on the part of the Division to pay when due any amount due UTGR under this Agreement and the subsequent failure to pay
such amount within ten (10) days after written notice from UTGR specifying such failure to pay.

 

11.3         Except
as set forth in Section 11.4 below, in the event of a material breach by the Division, UTGR shall be entitled to recover its actual
damages, but, except as otherwise specifically provided in this Agreement, shall not be entitled to terminate this Agreement.

 

11.4         The
failure to provide the owner of Lincoln Park and the Business with adjustment in the Blended Rate as required by Section 6 of this
Agreement shall constitute a violation of the Act and a material breach of this Agreement, and shall entitle such owner to bring
a claim against the Division and the Stale for actual damages and/or specific performance and/or other equitable relief, notwithstanding
any limitation on such damages imposed by the laws of the State. For purposes of computing the actual damages with respect to any
claim by UTGR against the State or the Division for a failure to provide adjustments in the Blended Rate pursuant to the provisions
of the Act and of this Agreement, “actual damages” means the positive difference between: (i) the Gaming Facility Revenues
UTGR would have retained had the State or the Division made the adjustments to the Blended Rate as required by Section 6 hereof
for the period of time the State or Division fails to provide such adjustment during the Term; and (ii) the Gaming Facility Revenues
actually retained by UTGR for the period of time the State or Division fails to make the adjustments to the Blended Rate as required
by the Act and this Agreement during the Term.

 

12.          Breach
by UTGR; Termination.

 

12.1         The
occurrence of any of the following shall be a breach of this Agreement on the part of UTGR (hereinafter a “UTGR Breach”):

 

A.           The
breach by UTGR of any provision of this Agreement other than a failure to pay amounts due to the Division; and/or

 

B.           The
failure on the part of UTGR to pay when due any amount due the Division under this Agreement.

 

C.           If
UTGR shall file a voluntary petition in bankruptcy, or shall be adjudicated a bankrupt or insolvent tor shall file any petition
or answer seeking any reorganization, arrangement, liquidation, dissolution or similar relief under any present or future Federal
Bankruptcy Act, or any other present or future applicable federal, state or other statue or law or shall seek or consent to, or
acquiesce in the appointment of, any trustee, receiver or liquidator of its property, business or assets, or shall make any assignment
for the benefit of creditors, or shall admit in writing its inability to pay its debts generally when due; or

 

    	 	-17-	 

     

    

 

D.           If
within sixty (60) days after the commencement of any proceedings against UTGR seeking any reorganization, arrangement, recapitalization,
readjustment, liquidation, dissolution or similar relief under the present or any future Federal Bankruptcy Act, or any other present
or future applicable Federal, state or other statute or law, such proceedings shall not have been dismissed, or if, within sixty
(60) days after the appointment, without the consent or acquiescence of UTGR, of any trustee, receiver or liquidator of UTGR, or
of all ,or substantially all, of its business, properties or assets, such appointment shall not have been vacated or stayed on
appeal or otherwise, or within sixty (60) days after the expiration of any such stay, such appointment shall not have been vacated.

 

E.           If
UTGR commits any act which would permit the Division to revoke its license, including without limitation, conduct described in
Section 42-61-S(d) (1), (3), (4) or (5), G.L.R.I., 1956, as amended.

 

12.2         The
Division may (but shall not be obligated to) terminate this Agreement immediately by written notice to UTGR, in the event UTGR
fails to comply with its obligations under Section 4.1, as evidenced by the certifications (or lack thereof) provided to the Division
pursuant to Section 4.3 and, within thirty (30) days after written notice from the Division specifying such failure, UTGR fails
to bring itself into compliance with Section 4.1; provided, however, that if such breach is curable but cannot be cured within
the aforesaid thirty (30) -day period, then said thirty (30) -day period shall be extended so long as the breaching party is proceeding
with commercially reasonable diligence to effectuate such cure.

 

12.3         In
the event of a breach by UTGR of any covenant, term or condition of this Agreement the Division shall give UTGR notice thereof
and UTGR shall in the case of payment default shall have ten (10) days to pay such amount and in the case of any other default
(other than as specified in Section 12.2 hereof) shall have thirty (30) days to cure such default unless such default cannot be
cured by the exercise of reasonable diligence within such thirty (30) -day period in which event such thirty (30) -day period shall
be extended for so long as UTGR is proceeding with commercially reasonable diligence to effectuate such cure.

 

12.4         In
the event of a breach by UTGR of any material covenant, term or condition of this Agreement, the Division shall be entitled to
recover its actual damages.

 

12.5         In
the event that this Agreement shall be terminated due to a default by UTGR that is not cured within the applicable cure periods
set forth herein therefore, then the “Acquisition Institutional Financiers” (as hereinafter defined) or their institutional
successors from time to time shall have the right to cause this Agreement to be reinstated at any time within ninety (90) days
following such termination by curing or causing to be cured any defaults giving rise to such termination; provided, however, that
in the event that such default is capable of cure, but not, on a commercially reasonable basis, within such ninety (90) -day period,
and in the further event that such Institutional Lender or their institutional successors shall commence such cure within such
ninety (90) -day period and shall proceed with such cure with reasonable commercial diligence, then such ninety (90) -day period
shall be extended to facilitate the completion of such cure.

 

    	 	-18-	 

     

    

 

12.6         In
the event of any alleged breach of Sections 9.11, 9.2 and 9.3 of this Agreement, which is not cured within the time provided for
herein, the party disputing the existence of such breach shall within ten (10) days of receipt of the notice of such breach from
the other party, give such other party notice that its disputes the existence of a breach of the Agreement. Thereafter, within
twenty (20) days of giving of the notice disputing the breach, the Division shall cause a hearing to be held before a Hearing Officer
appointed pursuant to the rules and regulations of the Division. Such hearing shall conducted in accordance with the Administrative
Procedures Act. Chapter 42-35 of the General Laws of Rhode Island 1956 (1993 Reenactment) as the same shall be amended from time
to time. The Hearing Officer shall determine whether a breach has in fact occurred and any party aggrieved by the decision of the
Hearing Officer may appeal to Superior Court in accordance with Administrative Procedures Act. Until such time as the Hearing Officer’s
determination that a breach of this Agreement has occurred and such determination has become final and all allowable appeals therefrom
shall have become final and no further appeal shall lie, this Agreement shall remain in full force and effect. Upon a final determination
in accordance with this Section 12.6 that a breach of this Agreement has taken place, the aggrieved party shall be entitled to
all remedies available to it in law and equity.

 

12.7         In
the event of any breach, or threatened breach, by UTGR of its obligations under Section 4.13 of this Agreement, the Division shall
be entitled to injunctive relief without the necessity of demonstrating irreparable harm.

 

13.          Effect
of Termination.

 

Any termination of
this Agreement shall not affect any liability of any of the parties that has accrued prior to the date of termination or as a result
of such termination or of the acts giving rise to such termination, including, without limitation, the liability of any party for
any default by such party in the performance of its obligations under this Agreement nor shall it affect the coming into force
or continuance in force of any provision of this Agreement which is expressly intended to continue in force on or after such termination.

 

14.          General.

 

14.1         Force
Majeure. Either party shall be liable for any delay in performing any obligation hereunder for any one or more causes beyond
its reasonable control, including but not limited to strikes, lockouts and other labor disputes, accidents, war, terrorism, invasion,
riot, rebellion, civil commotion or disturbances, insurrection, epidemics, embargoes, any act or judgment of any court granted
in any legal proceeding, illegal, malicious, wanton, or capricious acts of a third party, changes or modification in industry standards
or protocols, and the existence of or changes in federal or State laws or the laws of other countries prohibiting or imposing criminal
penalties or civil liability for performance hereunder, the inability of any party to secure the necessary governmental permits
to carry out its obligations under this Agreement notwithstanding the exercise of commercially reasonable efforts, acts of God
such as fire, wind or lightning, earthquakes or other severe weather, explosion, act of government or faults or delays by subcontractors
to provide service due to circumstances such as those cited above (each, a “Force Majeure Event”). Notwithstanding
the foregoing, this Section 14.1 shall not apply to the Division’s obligations under Section 6 and each Subsection of Section
6 of this Agreement, nor shall this Section 14.1 apply to the exemption of this Agreement from the provisions of Rhode Island General
Laws § 37.2 and Rhode Island General Laws § 42- 61.2-4(3).

 

    	 	-19-	 

     

    

 

14.2         Relationship
of Parties. Except as otherwise provided herein, the parties to this Agreement are and will be acting in their individual capacities
and not as agents, employees, partners, joint venturers or associates of one another. The employees or agents of one party shall
not be deemed or construed to be the employees or agents of the other party for any purpose whatsoever.

 

14.3         Scope
of the Agreement. This writing shall constitute the entire agreement between the parties and shall supersede all other prior
agreements, oral or written, and all other communications between the parties relating to the subject matter hereof.

 

14.4         Amendment.
This Agreement shall not be amended except by a writing of subsequent date hereto, executed by duly authorized representative of
the parties hereto.

 

14.5         Assignment.
This Agreement shall not be assigned by either party without the prior written consent of the other party, provided, that the Division
agrees to give expedited consideration to any request for any assignment by UTGR where the assignee is directly or indirectly controlled
by, or under common control with, any one or more of Starwood Capital Group Global, L.L.C., Kerzner International Limited, Waterford
Group, L.L.C., or any Institutional Lenders from time to time financing or refinancing the Acquisition. So long as a proposed assignee
of UTGR or any of its permitted successors shall have been found to be qualified by the Division to hold the license, the Division
shall not unreasonably withhold or delay its consent to such proposed assignment.

 

14.6         Notices.
All notices, demands and other communications required or permitted hereunder shall be in writing and shall be deemed received
(i) upon receipted delivery if sent by messenger or personal courier, (ii) two (2) business days after being deposited with an
internationally recognized overnight courier, or (iii) upon facsimile transmission to the number indicated below and receipt of
a confirmation with respect thereto; or (iv) an actual receipt, if sent in any other manner, in each case with postage/delivery
prepaid or billed to sender and addressed as follows:

 

	If to UTGR:	President
	 	UTGR, Inc.
	 	c/o Lincoln Park
	 	1600 Louisquisset Pike
	 	Lincoln, Rhode Island  02865
	 	 
	With copy to:	Stephen J. Carlotti, Esquire
	 	Hinckley, Allen & Snyder, LLP
	 	1500 Fleet Center
	 	Providence, Rhode Island  02903

 

    	 	-20-	 

     

    

 

	If to the Division:	Director, Division of Lotteries
	 	1425 Pontiac Avenue
	 	Cranston, Rhode Island  02920
	 	 
	With a copy to:	Director, Department of Administration
	 	One Capitol Hill
	 	Providence, Rhode Island  02908
	 	 
	 	Director, Department of Transportation
	 	Two Capitol Hill
	 	Providence, Rhode Island  02903

 

Any party may change its address for purposes
of notice hereunder by sending notice in the manner provided above, together with the effective date of such change.

 

14.7         Binding
Effect. This Agreement shall be binding upon and inure to the benefit of each of the parties hereto and each of their respective
successors and permitted assigns.

 

14.8         Waiver.
The failure of either party to enforce at any time any of the provisions of this Agreement shall in no way be construed to be a
waiver of such provisions, nor in any way affect the validity of this Agreement, or any part thereof, or the right of the other
party thereafter to enforce each and every provision.

 

14.9         Severability.
The panics acknowledge that the provisions contained herein are required for the reasonable protection of the business interests
of the parties. The illegality, invalidity or unenforceability of any provision of this Agreement under any applicable law shall
not affect its legality, validity or enforceability under the law of any other jurisdiction nor the legality, validity or enforceability
of any other provision, and to this end the provisions hereof are declared to be severable, with the exception that UTGR, UTGR
Business Affiliates (including BLB), and/or any affiliate of any of them which operates the Facility and/or the Business may terminate
this entire Agreement if the obligations of the State, the Division, or any agent or instrumentality of the State under Section
6 of this Agreement are held to be unenforceable by a court of law or rendered unenforceable by federal or state law.

 

14.10         Authorization
to Execute Agreement. The parties warrant that they are authorized to execute and deliver this Agreement and to perform the
obligations set forth herein and the persons executing this Agreement on behalf of such party are authorized to do so.

 

14.11         Headings
and Interpretation. Section headings of this Agreement are for convenience only and shall neither form a part nor affect the
interpretation hereof. Words in the singular number shall be interpreted to include the plural (and vice-versa), when the sense
so requires.

 

14.12         Governing
Law; Consent to Jurisdiction. This Agreement shall be governed by, construed and enforced in accordance with the laws of the
State of Rhode Island, without regard to conflict of law principles. The parties agree that any suit for the enforcement of this
Agreement may be brought in the courts of the State of Rhode Island or any Federal Court sitting therein and consent to the non-exclusive
jurisdiction of such court and to service of process in any such suit being made upon the parties at the addresses set forth for
the parties above. The parties hereby waive any objection that they may now or hereafter have to the venue of any such suit or
any such court or that such suit was brought in an inconvenient court.

 

    	 	-21-	 

     

    

 

14.13         Recitals
Not Controlling. In the case of any inconsistency between any provision in the Recitals of this Agreement set forth before
Section l and any provision of this Agreement set forth in Section l through and including Section 14, the provisions set forth
in Section 1 through and including Section 14 of this Agreement shall govern.

 

14.14         Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original copy of this Agreement and
all of which, when taken together, will be deemed to constitute one and the same agreement.

 

[REMAINDER OF THIS PAGE INTENTIONALLY BLANK
– SIGNATURE PAGE FOLLOWS]

 

    	 	-22-	 

     

    

 

IN WITNESS WHEREOF,
this Agreement has been executed by the parties hereto on the ____ day and year first above written.

 

	UTGR, INC.	 	DIVISION OF LOTTERIES
	 	 	 	 	 
	By:	/s/ Madison Gross	 	By:	/s/ Beverly Najarian
	Name: 	Madison Gross	 	Name:	Beverly Najarian
	Title: 	President	 	Title:	Acting Director
	 	 	 	 	 
	AGREED AND ACCEPTED	 	 
	(as to Section 7 only):	 	 
	 	 	 	 	 
	Rhode Island Department of Transportation	 	 
	 	 	 	 	 
	By:	/s/ James R. Capaldi	 	 	 
	Name: 	James R. Capaldi, P.E.	 	 	 
	Title: 	Director	 	 	 

 

     

     

    

 

ATTACHMENT
“A”

STATE OF
RHODE ISLAND GENERAL CONDITIONS OF PURCHASE

 

Note· The Office of Purchases may,
from time to time, make amendments to the General Terms and Conditions when the Purchasing Agent determines that such amendments
are in the best interest of the State. Amendments shall be made available for public inspection at the Office of the Secretary
of State but shall not require formal public notice and hearing. Copies of the Terms and Conditions shall be provided to any individual
or firm requesting to become a registered bidder. Applicants shall be required, as part of the application process to certify that
they have read the General Terms and Conditions and understand that they apply to all State Purchases.

 

STATE
OF RHODE ISLAND OFFICE OF PURCHASES

GENERAL CONDITIONS OF PURCHASE

 

All State Purchase Orders, Contracts,
Solicitations, Delivery Orders and Service Requests shall incorporate and be subject to the provisions of Title 37 Chapter 2 of
the General Laws of the State of Rhode Island, the Regulations adopted pursuant thereto, all other applicable provisions of the
Rhode Island General Laws, specific requirements described in the Request or Contract, and the following General Conditions of
Purchase:

 

1.            GENERAL
- All purchase orders, contracts, solicitations, delivery orders, and service requests are for specified goods and services,
in accordance with express terms and conditions of purchase, as defined herein. For the purposes of this document, the terms “bidder”
and “contractor” refer to any individual, firm, corporation, or other entity presenting a proposal indicating a desire
to enter into contracts with the State, or with whom a contract is executed by the State’s Purchasing Agent, and the term
“contractor” shall have the same meaning as “vendor.”

 

2.            ENTIRE
AGREEMENT - The State’s Purchase Order, or other State contract endorsed by the State Office of Purchases, shall constitute
the entire and exclusive agreement between the State and any contractor receiving an award. In the eve any conflict between the
bidder’s standard terms of sale, these conditions or more specific provisions contained in the solicitation shall govern.
All communication between the State and any contractor pertaining to any award or contract shall be accomplished in writing.

 

		·	a.      Each proposal will be received with the understanding that
the acceptance, in writing, by contract or Purchase Order by the Purchasing Agent of the offer to do work or to furnish any or
all the materials, equipment, supplies or services described therein shall constitute a _________ which are known to be wholly
produced in the Republic of South Africa may not be accepted for any procurement the State of Rhode Island; the offeror attests
by his submission of a bid or offer, or acceptance of a purchase order or other contract, that these prohibitions do not apply
to material or goods which form the basis for his offer or contract.

 

30.         TAXES
- The State of Rhode Island is exempt from payment of excise, transportation and sales tax imposed by the Federal or State
Government. These taxes should not be included in the proposal price. Exemption Certificates will be furnished upon request.

 

     

     

    

 

31.         INSURANCE
- All construction contractors, independent tradesmen, or firms providing any type of maintenance, repair, or other type of
service to be performed on state premises, buildings, or grounds are required to purchase and maintain coverage with a company
or companies licensed to do business in the state as follows:

 

		·	a.    Comprehensive General Liability Insurance -

 

		·	1)           Bodily Injury $1.000,000 each occurrence

 

		·	$1,000.000 annual aggregate

 

		·	2)           Property Damage $500.000 each occurrence

 

		·	$500.000 annual aggregate

 

		·	Independent Contractors

 

		·	Contractual - including construction hold harmless and other types of contracts or agreements in effect for insured operations

 

		·	Completed Operations

 

		·	Personal Injury (with employee exclusion deleted)

 

		·	b.    Automobile Liability Insurance -

 

		·	Combined Single Limit $1,000,000 each occurrence

 

		·	Bodily Injury

 

		·	Property Damage, and in addition non-owned and/or hired vehicles and equipment

 

		·	c.    Workers’ Compensation Insurance -

 

		·	Coverage B $100.000

 

The Purchasing Agent reserves the right
to consider and accept alternate forms and plans of insurance or to require additional or more extensive coverage for any individual
requirement. Successful bidders shall provide certificates of coverage, reflecting the State of Rhode Island as an additional insured,
to the Office of Purchases, forty-eight (48) hours prior to the commencement of work, as a condition of award. Failure to comply
with this provision shall result in rejection of the offeror’s bid.

 

32.         BID
SURETY - When requested, a bidder must furnish a Bid Bond or Certified Check for five percent (5%) of his bid, or for the stated
amount shown in the solicitation. Bid Bonds must be executed by a reliable Surety Company authorized to do business in the State
of Rhode Island. Failure to provide Bid Surety with bid may be cause for rejection of bid. The Bid Surety of any three bidders
in contention will be held until an award has been made according to the specifications of each proposal. All others will be returned
by mail within 48 hours following the bid opening. Upon award of a contract, the remaining sureties will be returned by mail unless
instructed to do otherwise.

 

     

     

    

 

33.         PERFORMANCE
AND LABOR AND PAYMENT BONDS - A performance bond and labor and payment bond of up to 100% of an award may be required by the
Purchasing Agent. Bonds must meet the following requirements:

 

		·	a.       Corporation: The Bond must be signed by an official of
the corporation above his official tide and the corporate seal must be affixed over his signature.

 

		·	b.        Firm or Partnership: The Bond must be signed by all of
the partners and must indicate that they are “Doing Business As (name of firm).”

 

		·	c.        Individual: The Bond must be signed by the individual owning
the business and indicate “Owner.”

 

		·	d.       The Surety Company executing the Bond must be licensed
to do business in the State of Rhode Island or Bond must be countersigned by a company so licensed.

 

		·	e.        The Bond must be signed by an official of the Surety Company
and the corporate seal must be affixed over his signature.

 

		·	f.        Signatures of two witnesses for both the principal
and the Surety must _________Exhibit 10.6

  

First
Amendment to Master Video Lottery Terminal Contract

 

This First Amendment
to Master Video Lottery Contract (this “First Amendment”) is made and entered into on this 4th day of November,
2010, by and between the Division of Lotteries of the Rhode Island Department of Revenue, an agency of the State of Rhode Island
(formerly known as the Division of Lotteries of the Rhode Island Department of Administration), with its principal address at 1425
Pontiac Avenue, Cranston, Rhode Island 02920 (the “Division”), and UTGR, Inc., a Delaware corporation with its
principal office located at 100 Twin River Road, Lincoln, Rhode Island 02865, as reorganized under the Plan (as defined below)
(as so reorganized, “UTGR”), and amends that certain Master Video Lottery Terminal Contract by and between the
Division and UTGR dated as of July 18, 2005 (the “Master Contract”). The Division and UTGR are referred
to herein collectively as the “Parties,” and individually, as a “Party.” This First Amendment
shall take effect as set forth in Section 2 below.

 

WITNESSETH:

 

WHEREAS, the Division,
as successor-in-interest to the Division of Lotteries of the Rhode Island Department of Administration (the “Former Lottery
Division”), and UTGR are parties to the Master Contract, and the State of Rhode Island Department of Transportation (“DOT”)
signed the Master Contract as to Section 7 thereof only;

 

WHEREAS, UTGR is a
wholly owned subsidiary of BLB Management Services. Inc. (“BLB Management”), which in turn is wholly owned by
BLB Worldwide Holdings, Inc. (“BLB Worldwide,” and together with BLB Management and UTGR, the “Debtors”);

 

WHEREAS, on June 23,
2009, the Debtors filed voluntary petitions pursuant to chapter 11 of title 11 of the United States Bankruptcy Code (11 U.S.C.
§§ 101-1532) with the U.S. Bankruptcy Court for the District of Rhode Island (the “Bankruptcy Court”),
jointly administered under case number 09-12418 (ANV) (the “Bankruptcy Cases”);

 

WHEREAS, by order dated
June 24, 2010, the plan of reorganization filed by the Debtors in the Bankruptcy Cases (the “Plan”) was
confirmed by the Bankruptcy Court;

 

WHEREAS, during the
2010 Session of the Rhode Island Legislature, the State of Rhode Island enacted into law the following acts (collectively, the
“2010 Acts”):

 

		1.	House Bill 2010–H8070 Substitute A, entitled “An Act Relating to Sports, Racing and
Athletics – Dog Racing,” signed by the Governor of Rhode Island on May 14, 2010 (the “2010 Dog Racing Act”)
(Copy attached hereto as Exhibit A), and

 

		2.	House Bill 2010 – H8157, as amended, entitled “An Act Relating to Authorizing the First
Amendments to the Master Video Lottery Terminal Contracts,” signed by the Governor of Rhode Island on May 27, 2010 (the
“2010 VLT Contracts Act”) (Copy attached hereto as Exhibit B);

 

     

     

    

  

WHEREAS, pursuant to
Part A, Section 4(a) and (b) and Section 8(B)(d) in Sections 6 and 7 of the 2010 VLT Contracts Act, the Division, DOT and UTGR
are, as applicable, expressly authorized and empowered to enter into a First Amendment to the Master Contract, which amendments
are set forth in this First Amendment and this First Amendment is, accordingly, the “First Amendment” as that
term is defined in Part A, Section 2(e) of the 2010 VLT Contracts Act; and

 

WHEREAS, on October 18,
2010 the Director of the Department of Business Regulation issued a Decision approving the Application, ownership, and management
structure of UTGR subject to certain conditions, including, but not limited to the approval by the Division of the amendment to
the Master Contract and the grant to UTGR by the Division of a video lottery retailer license.

 

NOW, THEREFORE, in
consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
and in consideration of the mutual promises, covenants, obligations and conditions herein contained. UTGR, the Division and (where
applicable) the DOT hereby agree as follows:

 

		1.	Definitions and Interpretation

 

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

 

		1.2	The Parties and the DOT hereby acknowledge and agree that the facility known on the date of the
Master Contract as the Lincoln Park Gaming and Entertainment Facility located at 1600 Louisquisset Pike, Lincoln, Rhode Island,
and defined in the Master Contract as “Lincoln Park,” is now known as Twin River. Twin River is a gaming and entertainment
facility located in the same place as Lincoln Park but has an address at 100 Twin River Road, Lincoln, Rhode Island (“Twin
River”). All references to “Lincoln Park” contained in the Master Contract shall be interpreted to mean “Twin
River.”

 

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

 

		1.4	The Parties and the DOT further acknowledge and agree that UTGR, as reorganized under the Plan
as of the date on which the Plan becomes effective, will assume all of the rights, liabilities, and obligations of the entity referenced
as “UTGR, Inc.” under the Master Contract and that all references to “UTGR” contained in the Master Contract
(including the definition of “UTGR” in Section 1 of the Master Contract) shall be interpreted to mean UTGR as that
term is defined in the preamble of this First Amendment.

 

    2 

     

    

  

		1.5	The Parties and the DOT further acknowledge and agree that BLB Worldwide is the ultimate parent
company of UTGR, and that the references to “BLB” or “BLB Investors, L.L.C.” contained in Sections 4.5,
4.9, 9 (the heading), 9.1 and 14.9 of the Master Contract (including the definition of “BLB” in Section 1 of the Master
Contract) shall be interpreted to mean BLB Worldwide, as that term is defined herein.

 

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

 

		2.	Conditions Precedent to this First Amendment becoming Effective

 

This First Amendment
shall become effective on the effective date of the Plan (the “First Amendment Effective Date”).

 

		3.	Extension of Term

 

		3.1	Pursuant to Part A, Section 4(a)(i) of the 2010 VLT Contracts Act. UTGR had the right to and did
properly exercise its option to extend the term of the Master Contract for the First Extension Term, which First Extension Term
commenced on July 18, 2010 and shall continue through and including July 17, 2015.

 

		3.2	Pursuant to Part A, Section 4(a)(i) of the 2010 VLT Contracts Act, UTGR shall have the right and
option to further extend the term of the Master Contract as amended by this First Amendment for the Second Extension Term, which
Second Extension Term would commence on July 18, 2015 and continue through and including July 17, 2020; provided however,
except as provided in Part A, Section 4(a)(vi) of the 2010 VLT Contracts Act, the exercise of the option to extend said Master
Contract for the Second Extension Term shall be subject to the terms and conditions of Section 2.5 of the Master Contract; provided
further however, as provided in Part A, Section 4(a)(i) of the 2010 VLT Contracts Act, said Section 2.5B is hereby amended such
that with respect to UTGR’s exercise of the Second Extension Term, UTGR shall be required to certify to the Division that
(i) there are 650 full-time equivalent employees at the Twin River facility on the date of the exercise of the option for the Second
Extension Term; and (ii) for the one-year period preceding the date said Second Extension Term option is exercised, there had been
650 full-time equivalent employees on average, as the term full-time equivalent employee is defined in section 2.5B of the Master
Contract and as confirmed by the Rhode Island Department of Labor and Training.

 

    3 

     

    

  

		4.	Promotional Points Program

 

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

 

		5.	Marketing Program

 

		5.1	Pursuant to Part A, Section 4(a)(iii) of the 2010 VLT Contracts Act, (and in accordance with and
notwithstanding anything in the Master Contract to the contrary), UTGR is authorized to conduct a Marketing Program as that term
is defined in Part A, Section 2 of the 2010 VLT Contracts Act. Said Marketing Program shall be monitored by the Division. For each
Marketing Year, to the extent that UTGR’s marketing expenditures exceed four million dollars, ($4,000,000), the Division
shall pay UTGR an amount equal to the product of such excess multiplied by the Division Percentage, provided however, that (1)
the total amount payable by the Division for each Marketing Year pursuant hereto shall be capped at an amount equal to the Division
Percentage multiplied by six million dollars ($6,000,000) and (2) the Division shall not owe any amount pursuant to said Part A,
Section 4(a)(iii) of the 2010 VLT Contracts Act in any given Marketing Year unless, pursuant to R.I Gen. Laws § 42-61.2-7(a),
the State has received net terminal income for such Marketing Year in an amount equal to or exceeding the amount of net terminal
income the State received for the State’s fiscal year 2009; provided further, that in any partial Marketing Year, the total
amount payable by the Division shall be capped at an amount equal to six million dollars ($6,000,000) multiplied by the Division
Percentage, the product of which shall be further reduced by multiplying it by a fraction, (A) the numerator of which is the number
of days in any such partial Marketing Year and (B) the denominator of which is 365. (It is anticipated that the only partial Marketing
Years shall occur between the effective date of the First Amendment and the last day of the fiscal year of the State during which
such effective date occurred and/or the first day of the fiscal year of the State in which the termination of the UTGR Master Contract
occurs and the termination date of the UTGR Master Contract, as the case may be.)

 

		5.2	Pursuant to Part A, Section 4(c) and Section 5 of the 2010 VLT Contracts Act, any amounts related
to the Marketing Program payable by the Division shall be paid on a frequency agreed by the Division (but no less frequently than
annually) out of that share of net terminal income disbursed pursuant to R.I. Gen. Laws § 42-61.2-7(a)(1) as an administrative
expense of the Division, after allocation of net terminal income pursuant to R.I. Gen. Laws § 42-61.2-7(a)(1),(2),(3),(4),(5),
and (6). In accordance with Part A, Section 5(c) of the 2010 VLT Contracts Act notwithstanding anything in R.I. Gen. Laws § 42-61.2
to the contrary, the Director of the Division is authorized to fund the Marketing Program as described in Part A, Section 4(iii)
of the 2010 Contracts Act.

 

    4 

     

    

  

		6.	Hours of Operation

 

		6.1	Pursuant to Part A, Section 4(a)(v) of the 2010 VLT Contracts Act, UTGR, at its discretion, shall
be permitted to maintain and operate all video lottery games at Twin River up to twenty-four (24) hours per day, up to seven (7)
days per week, including without limitation, federal and state recognized holidays.

 

		7.	Waiver and Release of UTGR, BLB and BLB Affiliates

 

		7.1	Pursuant to Part A, Sections 4(a)(vi) and Section 8A entitled “Waiver and Releases of UTGR,
BLB and BLB Affiliates” in Sections 6 and 7 of the 2010 VLT Contracts Act, the State, on behalf of itself and each entity
thereof, including, but not limited to, the Division, and the Department of Revenue and the DOT, irrevocably waives, releases,
and acknowledges – and authorizes the Division on behalf of itself and the Department of Revenue and the Department of Transportation
on behalf of itself, to separately irrevocably waive, release, acknowledge the fulfillment of or deem fulfilled, as applicable,
as of the effective date of the Plan: (1) any obligation, covenant, condition or commitment performed or to be performed by UTGR,
BLB and/or any BLB affiliate under or in connection with the Master Contract prior to and/or including the effective date of the
Plan; (2) any UTGR breach, default, noncompliance or delayed compliance on the part of UTGR, BLB and/or any BLB affiliate of any
representation, warranty, covenant, term or condition any time prior to and/or including the effective date of the Plan; and (3)
in connection with UTGR’s right to exercise the option for the First Extension Term only, any obligation, covenant, condition,
circumstance or commitment under section 2.5.B of the Master Contract; specifically, said waiver, release, and acknowledgement
of section 2.5.B shall not relate to UTGR’s right to extend the term of the Agreement for the Second Extension Term.

 

    5 

     

    

  

		8.	Enforcement of Obligations

 

		8.1	Pursuant to Part A, Section 8B entitled “Enforcement of Obligations” in Sections 6
and 7 of the 2010 VLT Contracts Act, except as currently exists for Twin River, under the provisions of R.I. Gen. Laws § 42-61.2-7(a)(2)
of the Rhode Island General Laws, and except as expressly provided in Section 8.2 below if the State or any entity thereof, including
the Division, enters into any agreement or adopts, modifies or amends any law, rule or regulation that would impair the rights
of UTGR under the 2010 VLT Contracts Act and/or under the Master Contract and/or this First Amendment, as may be amended in the
future, and as extended pursuant to the 2010 VLT Contracts Act and as may be extended in the future (as so amended and extended
hereby and as may be amended and extended in the future), and/or fails to provide UTGR with slippage protection as described in
the 2010 VLT Contracts Act and in the Master Contract, UTGR may bring a claim against the State and/or Division, for actual damages
and/or specific performance and/or other equitable relief, notwithstanding any limitation on such damages imposed by the laws of
the State. For purposes of computing the actual damages with respect to any claim by UTGR against the State and/or the Division
for a failure to provide slippage protection pursuant to the provisions of the 2010 VLT Contracts Act and/or the Master Contract,
“actual damages” means the positive difference between: (i) the gaming facility revenues UTGR would have retained had
the State or any entity thereof, including the Division, provided slippage protection for the period of time that the State and/or
the Division failed to provide slippage protection during the term of the Agreement; and (ii) the gaming facility revenues actually
retained by UTGR. For the avoidance of doubt, this subsection, or any section herein, does not apply to the Compliance Agreement
entered into between UTGR and the Department of Business Regulation on September 27, 2010.

 

		8.2	Except only as provided in Part A, Section 8A entitled “Waiver and Release of UTGR, BLB and
BLB Affiliates” in Part A, Sections 6 and 7 of the 2010 VLT Contracts Act nothing in the 2010 VLT Contracts Act on this First
Amendment shall limit the authority of the Division to enforce its rights under the Agreement or limit the authority of the State
to enforce consensual agreements between UTGR and the State or any department or division thereof to enact, adopt and enforce laws
and regulations which are of general application.

 

		8.3	To the extent any provisions of Part A, Section 8B entitled “Enforcement of Obligations”
in Sections 6 and 7 of the 2010 VLT Contracts Act and/or Section 8 of this First Amendment are inconsistent with the provisions
of subsections (c) and (d) of section 5 of chapters 322 and 323 of the public laws of 2005 and/or Section 6.6 of the Master Contract,
the provisions of Part A, Section 8B in Sections 6 and 7 of the 2010 VLT Contracts Act shall govern.

 

		9.	Dog Track Operation

 

		9.1	In accordance with the 2010 Dog Racing Act, the Division of Commercial Licensing of the Department
of Business Regulation (“DBR”) is prohibited from licensing dog racing and/or the operation of a dog track upon
which dog racing occurs in the town of Lincoln; provided however, an entity continues to be deemed a pari-mutuel licensee under
R.I. Gen. Laws § 42-61.2-1 et seq. and a licensee as defined in R.I. Gen Laws § 41-11-1 et seq.
if (1) an entity was issued a license to operate a dog track prior to December 31, 2008 and (2) an entity that had been issued
a license to operate a dog track prior to December 31, 2008 that after such date is reorganized under a confirmed plan of reorganization
pursuant to chapter 11 of title 11 of the United States Bankruptcy Code (11 U.S.C. §§ 101-1532) and in the event
of a proposed change in Control of said reorganized entity, said entity has filed an application with DBR for a Facility Permit
license and DBR has approved and issued said license. Therefore, the absence of dog racing or the operation of a dog track shall
not adversely impact UTGR’s ability to obtain, renew and maintain its status as a Licensed Video Lottery Retailer (as defined
in R.I. Gen. Laws § 42-61.2-1(2)), as a pari-mutuel licensee” (as defined in R.I. Gen. Laws § 42-61.2-1
of the Rhode Island General Laws) and/or as a “licensee” (as defined in R.I. Gen. Laws § 41-11-1.). Nothing
herein shall limit the ability of the Department of Business Regulation or Division, in connection with a proposed change in control,
to investigate and subject to the regulatory due diligence process, any holder of an ownership interest regardless of percentage
of ownership held.

 

    6 

     

    

  

		10.	Assignment

 

		10.1	As authorized by Part A, Section 4(iv) of the 2010 VLT Contracts Act, and as provided in Part A,
Sections 7 and 8 of the 2010 Contracts Act, the Parties and the DOT agree that the UTGR Master Contract shall be amended by deleting
Section 14.5.A of the Master Contract in its entirety and replacing it with the following:

 

“14.5 Assignment

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

 

		10.2	As authorized by Part A, Sections 8 and 9 of the 2010 VLT Contracts Act, the Parties and the DOT
agree that Section 14.5 of the Master Contract (“Assignment”) is hereby amended by adding after Section 14.5.A
(as amended and restated pursuant to Section 10.1 of this First Amendment) the following new Section 14.5.B:

 

“B. Notwithstanding R.I.
Gen. Laws § 41-3.1-3(c)(i) nothing in the 2010 Contracts Act shall restrict the ability of any person owning all or part
of UTGR, including a person (or persons acting in concert) Controlling UTGR, from assigning, delegating and/or otherwise transferring
its (or their) interest in UTGR to any other entity, and (ii) any such assignment, delegation and/or transfer shall not affect
UTGR’s pari-mutuel license; provided however, than any such proposed assignment, delegation and/or transfer that effects
a change of Control of UTGR shall be subject to prior approval and licensure by the appropriate regulatory authorities. Nothing
herein shall limit the ability of the Division and/or the Rhode Island Department of Business Regulation, in connection with any
such proposed assignment, delegation and/or transfer that effects a change of Control of UTGR, to investigate and subject to the
regulatory due diligence process, any holder of an ownership interest regardless of percentage of ownership held.”

 

    7 

     

    

  

		11.	Interpretation

 

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

 

		12.	Notices

 

		12.1	Each of the Parties and the DOT acknowledges and agrees that Section 14.6 of the Master Contract
is hereby amended by revising the addresses for notice as follows:

 

	If to UTGR:	General Counsel
	 	UTGR, Inc.
	 	100 Twin River Road
	 	Lincoln, Rhode Island  02865
	 	 
	With copy to:	Scott J. Greenberg, Esq.
	 	Cadwalader, Wickersham & Taft LLP
	 	One World Financial Center
	 	New York, New York  10281
	 	Fax:  (212) 504-6666
	 	 
	 	-and-
	 	 
	 	James J. Skeffington, Esq.
	 	Mark N.G. Hichar, Esq.
	 	Edwards Angell Palmer & Dodge LLP
	 	2800 Financial Plaza
	 	Providence, Rhode Island  02903
	 	Fax:  (401) 276-6611
	 	 
	If to the Division:	Director, Division of Lotteries
	 	1425 Pontiac Avenue
	 	Cranston, Rhode Island  02920
	 	 
	With copy to:	Director, Department of Revenue
	 	One Capitol Hill
	 	Providence, Rhode Island  02908
	 	 
	and copy to:	Director, Department of Transportation
	 	Two Capitol Hill
	 	Providence, Rhode Island  02903

 

    8 

     

    

  

		13.	Miscellaneous

 

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

 

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

 

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

 

		14.	DOT’s Obligations

 

		14.1	As required under Section 7 of the Master Contract, DOT provided all necessary support to improve
access to and egress from Twin River and has no continuing obligations after the First Amendment Effective Date.

 

[Remainder of page intentionally blank.
Signature page follows.]

 

    9 

     

    

 

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

 

	UTGR, Inc.	 	Division of Lotteries of the Rhode Island Department of Revenue
	 	 	 	 	 	 	 
	By:	
        /s/ George T. Papanier
	
	
        By:
	
        /s/ Gerald S. Aubin

	 	Name:	George T. Papanier	 	 	Name:	Gerald S. Aubin
	 	Title:	President and CEO	 	 	Title:	Director

 

AGREED AND ACCEPTED

(only in regard to Sections 1, 2, 7, 10, 12, 13 and 14 of this First Amendment)

	
         

        State of Rhode Island Department
        of Transportation

         
	 
	By:	
        /s/ Michael P. Lewis
	 
	 	Name:	Michael P. Lewis	 
	 	Title:	Director	 

     

     

    

 

Exhibit A

 

2010 –
H 8070 SUBSTITUTE A

 

STATE OF RHODE ISLAND

 

IN GENERAL ASSEMBLY

 

JANUARY SESSION, A.D. 2010

 

  

AN ACT

 

RELATING TO SPORTS, RACING

AND ATHLETICS – DOG RACING

 

Introduced By: Representatives Costantino, Melo, and
Carter

 

Date Introduced: April 29, 2010

 

Referred To: House Finance

 

It is enacted by the
General Assembly as follows:

 

SECTION 1. Section
41-3.1-3 of the General Laws in Chapter 41-3.1 entitled “Dog Racing in Burrillville, Lincoln, and West Greenwich” is
hereby amended to read as follows:

 

41-3.1-3. Regulation
of operations. – (a) The division of racing and athletics is hereby authorized to license dog racing in the towns
of Burrillville, Lincoln, and West Greenwich. the operation of a dog track shall be under the division’s supervision. The
division is hereby authorized to issue rules and regulations for the supervision of the operations, and the regulations are to
be issued prior to commencement of licensing hearings.

 

(b) Any license granted
under the provisions of this chapter shall be subject to the rules and regulations promulgated by the division and shall be subject
to suspension or revocation for any cause which the division shall deem sufficient after giving the licensee a reasonable opportunity
for a hearing at which he or she shall have the right to be represented by counsel. If any license is suspended or revoked, the
division shall state the reasons for the suspension or revocation and cause an entry of the reasons to be made on the record books
of the division.

 

     

     

    

 

(c) The division of
commercial licensing and racing and athletics in the department of business regulation shall be prohibited from licensing dog racing
and/or the operation of a dog track upon which dog racing occurs in the town of Lincoln. Any license having been issued and in
effect as of the effective date of this section shall be null and void and any licensee shall be prohibited form operating thereunder;
provided, however, that the following entities shall be deemed pari-mutuel licensees as defined in section 42-61.2-1 et seq. and
licensees as defined in section 41-11-1 et seq.: (1) Any entity having been issued a license to operate a dog track prior to December
31, 2008; and (2) Any entity having been issued a license to operate a dog track prior to December 31, 2008 that after such date
is reorganized under a confirmed plan of reorganization pursuant to chapter 11 of title 11 of the United States Bankruptcy Code
(11 U.S.C. sections 101-1532); and provided, further, that in the case of a reorganized licensee under clause (2) above, its application
for a Facility Permit license is approved and issued by the department of business regulation in the event of a proposed change
in control of the entity. Nothing herein shall limit the ability of the department of business regulation, in connection with a
proposed change in control, to investigate and subject to the regulation due diligence process, any holder of an ownership interest
regardless of percentage of ownership held.

 

SECTION 2. This act
shall take effect upon passage.

 

    A-2 

     

    

 

EXPLANATION

BY THE LEGISLATIVE COUNCIL

 

OF

 

AN ACT

 

RELATING TO SPORTS, RACING

AND ATHLETICS – DOG RACING

 

***

 

This act would prohibit
the department of business regulation from licensing dog racing or the operation of a dog track in the town of Lincoln. Any license
issued prior to or in effect on the date of the effective date this act would be null and void except for any entity issued a license
to operate a dog track prior to December 31, 2008, and that any such entity after December 31, 2008 would be reorganized under
the US Bankruptcy Code.

 

This act would take
effect upon passage.

 

    A-3 

     

    

 

Exhibit B

 

2010 –
H 8157 AS AMENDED

 

STATE OF RHODE ISLAND

 

IN GENERAL ASSEMBLY

 

JANUARY SESSION, A.D. 2010

 

  

AN ACT

 

RELATING TO AUTHORIZING THE FIRST AMENDMENTS

TO THE MASTER VIDEO LOTTERY TERMINAL CONTRACTS

 

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

 

Date Introduced: May 19, 2010

 

Referred To: Placed on House Calendar

 

It is enacted by the
General Assembly as follows:

 

Part A –
Authorized Amendment to UTGR Master Contract

 

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

 

     

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    B-2 

     

    

  

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    B-3 

     

    

  

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

 

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

 

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

 

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

 

    B-4 

     

    

 

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

 

    B-5 

     

    

 

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

 

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

 

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

 

    B-6 

     

    

 

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

 

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

 

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

 

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

 

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

 

    B-7 

     

    

 

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

 

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

 

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

 

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

 

    B-8 

     

    

 

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

 

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

 

(2) To the licensed
video lottery retailer:

 

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

 

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

 

    B-9 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

    B-10 

     

    

 

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

 

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

 

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

 

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

 

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

 

    B-11 

     

    

  

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

 

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

 

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

 

    B-12 

     

    

  

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

 

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

 

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

 

(2) To the licensed
video lottery retailer:

 

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

 

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

 

    B-13 

     

    

  

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

 

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

 

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

 

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

 

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

 

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

 

    B-14 

     

    

  

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 8B. Enforcement
of Obligations.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 8B. Enforcement
of Obligations.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

SECTION 12. This act
shall take effect upon passage.

 

PART B –
Authorized Amendment to Newport Grand Master Contract

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    B-26 

     

    

  

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

 

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

 

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

 

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

 

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

 

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

 

    B-28 

     

    

 

 

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

 

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

 

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

 

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

 

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

 

    B-29 

     

    

 

 

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

 

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

 

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

 

(2) To the licensed
video lottery retailer:

 

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

 

    B-30 

     

    

  

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

 

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

 

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

 

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

 

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

 

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

 

    B-31 

     

    

  

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(2) To the licensed
video lottery retailer:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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Section 4(f). Enforcement
of Obligations.

 

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

 

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

 

    B-38 

     

    

  

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

 

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

 

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

 

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

 

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

 

    B-39 

     

    

  

Section 4(f). Enforcement
of Obligations.

 

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

 

    B-40 

     

    

 

 

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

 

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

 

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

 

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

 

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

 

SECTION 10. This act
shall take effect upon passage

 

    B-41 

     

    

 

EXPLANATION

BY THE LEGISLATIVE COUNCIL

 

OF

 

AN ACT

 

RELATING TO AUTHORIZING THE

FIRST AMENDMENTS TO THE MASTER VIDEO

LOTTERY TERMINAL CONTRACTS

 

***

 

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

 

This act would take
effect upon passage.

 

    B-42

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