Document:

Management Agreement

 Exhibit 10.70 
 MANAGEMENT AGREEMENT 
 BETWEEN THE 
 NOTTAWASEPPI HURON BAND OF POTAWATOMI INDIANS 
 AND 
 GAMING ENTERTAINMENT (MICHIGAN), LLC 
 June
12, 2006 

 MANAGEMENT AGREEMENT 
 THIS MANAGEMENT AGREEMENT has been entered into as of the 12th day of June, 2006, by and between the NOTTAWASEPPI HURON BAND OF POTAWATOMI INDIANS, a federally recognized Indian tribe (the
“Tribe”), and GAMING ENTERTAINMENT (MICHIGAN), LLC, a Delaware limited liability company (“Manager”) (jointly and severally the “Parties” or “Party”). 
 1. Recitals 
 1.1 The Tribe and Green Acres Casino Management Company, Inc.
(“Green Acres”) entered into management agreements, dated June 11, 1994, for class II and class III gaming, as amended by an addendum dated January 4, 1995, which addendum, inter alia, added Full House Resorts, Inc.
(“FHRI”) as part of the management (collectively, the “Original Agreements”). Green Acres and FHRI have made all payments and, together with the Tribe, have otherwise performed all of their obligations required under the Original
Agreements. 
 1.2 With the approval of the Tribe, Green Acres and FHRI have assigned their rights under the Original Agreements to Manager subject to the
terms of the Agreement dated as of November 18, 1996, as amended July 1999 (collectively the “Royalty Agreements”) between Green Acres, FHRI, GTECH Corporation (whose shares in Manager FHRI has since acquired), and Manager, which,
inter alia, provides that Green Acres is not a member of the Manager and will be paid a royalty fee. 
 1.3 Manager and the Tribe entered into an Amended and
Restated Class III management agreement on November 18, 1996, superseding the Original Agreements, and making certain other changes as set forth therein. The Parties made further changes and executed a Temporary Facility Management Agreement
and Second Amended and Restated Management Agreement on June 9, 1999. The Temporary Facility Management Agreement was subsequently revised by a later agreement between the Parties dated November 3, 2002, which was forwarded to the National
Indian Gaming Commission (NIGC) for review and approval. The Parties now desire to make further changes to the agreement between them, as set forth in this Management Agreement (hereafter Management Agreement or this Agreement) which supersedes all
prior written agreements between the Parties. 
 1.4 The Tribe and Manager intend that the Manager shall provide funds to permit the Tribe (i) to
construct a Gaming Facility (as that term is herein defined) suitable for conducting Gaming (as that term is herein defined) on Indian lands in the State of Michigan pursuant to the Tribe’s recognized powers of self-government and the
Constitution, statutes and ordinances of the Tribe, as well as (ii) for other purposes. 
  

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 1.5 The Tribe desires to establish an Enterprise (as herein defined) to conduct Gaming on the Property to serve the
social, economic, educational and health needs of the Tribe, to increase Tribal revenues and to enhance the Tribe’s economic self-sufficiency and self-determination. This Agreement sets forth the manner in which the Enterprise will be
established and managed in the Gaming Facility. 
 1.6 The Tribe is seeking financial assistance and expertise from Manager for the construction of the
Gaming Facility and technical experience and expertise for the management and operation of the Enterprise and instruction for members of the Tribe in the operation of the Enterprise. The Manager is willing and able to provide such assistance,
experience, expertise and instruction. 
 1.7 The Tribe grants the Manager the exclusive right and obligation to develop, manage, operate and maintain the
Enterprise and to train Tribal members and others in the operation and maintenance of the Enterprise during the term of this Agreement, in accordance with the provisions of this Agreement. The Manager wishes to perform these functions exclusively
for the Tribe as limited in Section 3.3 below. 
 1.8 This Agreement will be submitted to the NIGC for approval pursuant to IGRA and terminates and
supersedes all prior written agreements between the Parties. 
 1.9 Manager has previously made nonrefundable payments to the Tribe in the aggregate amount
of Six Hundred and Sixty Thousand ($660,000), Ninety Three Thousand Five Hundred and Twenty-Seven Dollars ($93,527) for professional services, and Three Hundred Thousand ($300,000) for the Tribe’s Community Center. These payments constitute
gifts to the Tribe and shall not become part of the Loan. 
 2 Definitions. As they are used in this Agreement, the terms listed below shall have the meaning
assigned to them in this Section 2: 
 2.1 BIA. “BIA” is the Bureau of Indian Affairs of the Department of the Interior of the United States
of America. 
 2.2 Budgets. “Budgets” shall mean the Operating Budget and the Capital Expense Budget for the Gaming Facility. 
 2.3 Capital Expenses. “Capital Expenses” shall mean the cost of construction, alteration or rebuilding of the Gaming Facility and any furniture, trade fixtures
and equipment and other tangible or intangible property of the Gaming Facility, the costs of which are required by GAAP to be capitalized and depreciated. For purposes of this definition, any property costing less than $5,000 shall be an Operating
Expense of the Enterprise. 
 2.4 Capital Expense Budget. “Capital Expense Budget” shall mean the budget for Capital Expenses adopted in accordance
with Section 4.9. 
  

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 2.5 Capital Reserve Fund. “Capital Reserve Fund” shall mean the reserve fund established in accordance with
Section 4.13.6 to pay Capital Expenses. 
 2.6 Chairman. “Chairman” shall mean the Chairman from time to time of the NIGC. 
 2.7 Class II Gaming. “Class II Gaming” shall mean Class II Gaming as defined in IGRA and its implementing regulations. 
 2.8 Class III Gaming. “Class III Gaming” shall mean Class III Gaming as defined in IGRA and its implementing regulations. 
 2.9 Collateral. “Collateral” shall mean (a) The Tribe’s share of future Net Revenues, before distribution pursuant to Section 6 of this
Agreement, from the Enterprise and/or Gaming Facility, or other future undistributed Net Revenues arising or generated after the termination of this Agreement; and (b) Undistributed gaming and related Net Revenues from the Gaming Facility
arising or generated after the date that a matter in dispute is referred to arbitration, pursuant to Section 17, up to the amount of money, if any, in dispute. 
 2.10 Commencement Date. “Commencement Date” shall mean the first date that the Gaming Facility is substantially complete, open to the public and that Gaming is conducted in the Gaming Facility pursuant to
the terms of this Agreement. The Manager shall memorialize the Commencement Date in a writing signed by the Manager and delivered to the Tribe and the Area Director, Minneapolis Area Office, BIA. 
 2.11 Compact. “Compact” shall mean a Tribal-State Compact between the Tribe and the State of Michigan regarding Class III Gaming, as now in effect and as the
same may, from time to time, be amended. 
 2.12 Constitution. “Constitution” shall mean the Constitution of the Tribe adopted September, 1979, and
as the same may, from time to time, be amended. 
 2.13 Development and Construction Costs. “Development and Construction Costs” shall mean the sum
of all costs incurred in developing, designing and constructing the Gaming Facility and other Improvements that are required for the Gaming Facility’s initial operation, including, without limitation, any costs related to acquisition of the
Property, obtaining any Government Agency approvals, architect and engineering services, and other professional services. 
 2.14 Effective Date. The
“Effective Date” shall mean the date of written approval by the Chairman of (i) this Agreement, as executed by the Parties, (ii) any other documents collateral thereto that require approval by the Chairman or the BIA, as the case
may be, and (iii) a Tribal Gaming Ordinance, whichever occurs latest. 
  

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 2.15 Enterprise. The “Enterprise” is: 
  

	 	(a)	any commercial gaming enterprise of the Tribe authorized under the Indian Gaming Regulatory Act (IGRA), conducted in the Gaming Facility that is operated and managed by Manager in
accordance with the terms and conditions of this Agreement, 

  

	 	(b)	Automatic Teller Machines (“ATM”) within the Gaming Facility, 

  

	 	(c)	the sale of food, beverages (including alcoholic beverages), within the Gaming Facility, 

  

	 	(d)	gifts and souvenirs and the sale of tobacco conducted within the Gaming Facility. 

 2.16 Enterprise Employees. “Enterprise Employees” shall mean those employees working at the Gaming Facility other than the General Manager. Enterprise Employees are deemed employees of the Tribe. 
 2.17 Enterprise Employee Policies. “Enterprise Employee Policies” shall have the meaning given to it in Subsection 4.6.2. 
 2.18 Financial Institution. “Financial Institution” shall mean a financial institution or a trustee for a financial institution or such other third party
entity, as may be approved by the Tribe and the necessary federal authorities. 
 2.19 Furniture and Equipment. “Furniture and Equipment” shall
mean all furniture, furnishings and equipment required in the operation of the Gaming Facility in accordance with the Plans and Specifications. 
 2.20
Gaming. “Gaming” shall mean any and all activities defined as Class II or Class III Gaming under IGRA. 
 2.21 Gaming Commission. “Gaming
Commission” shall mean the body created pursuant to the Tribal Gaming Ordinance to regulate Gaming in accordance with the Compact, IGRA and the Tribal Gaming Ordinance. 
 2.22 GAAP. “GAAP” shall mean United States generally accepted accounting principles consistently applied applicable to Tribal government operations as set out in Governmental Accounting Standards Board
(GASB) Statements. For purposes of this Agreement, the Enterprise elects, as authorized under GASB Statement 20, paragraph 7, to apply all Financial Standards Board Statements (FASB) pronouncements issued after November 30, 1989, except for
those that conflict with or contradict GASB pronouncements. Notwithstanding treatment under GAAP, for the purposes of this Agreement, interest expenses will be included in the computation of Operating Expense. 
  

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 2.23 Gaming Facility. “Gaming Facility” shall mean the buildings, improvements, and fixtures hereafter
constructed on the Property pursuant to this Management Agreement within which the Enterprise will be housed. 
 2.24 General Manager. “General
Manager” shall mean the person employed by Manager and licensed by the Gaming Commission to direct the operation of the Gaming Facility. 
 2.25 General
Contractor. “General Contractor” shall mean the contractor or contractors selected by the Manager to construct the Improvements and any additions thereto in accordance with the Plans and Specifications. 
 2.26 Gross Revenues. “Gross Revenues” shall mean all revenues of any nature derived directly or indirectly from the Enterprise including, without limitation,
the total amount of cash wagered on class II and class III games and admissions fees (including table or card fees), food and beverage sales, net ATM proceeds, and rental from lessees, sublessees, licensees or concessionaires (but not the gross
receipts of such lessees, sublessees, licensees or concessionaires), business interruption insurance proceeds, temporary condemnation awards, and proceeds from litigation and other claims against third parties. Unless otherwise agreed by the
Parties, lessees, sublessees, licensees, or concessionaires which are subsidiaries or affiliates of the Tribe or the Manager shall be required to pay a fair market rental. 
 2.27 IGRA. “IGRA” shall mean the Indian Gaming Regulatory Act of 1988, PL 100- 497, 25 U.S.C. § 2701 et seq. as it may, from time to time, be amended. 
 2.28 Improvements. Subject to Section 4.1.1 herein, “Improvements” shall mean the improvements constructed and to be constructed (including but not
limited to the Gaming Facility) or installed on the Property and on adjacent areas for the benefit of the Property, including without limitation, the Facility access ways and roadways, parking areas, drainage improvements, utility lines, and
landscaping, all of which will be constructed in accordance with the Plans and Specifications approved by the Tribe. 
 2.29 Legal Requirements. “Legal
Requirements” shall mean singularly and collectively all applicable laws and regulations including without limitation the Tribal Gaming Ordinance, IGRA, the Compact, and applicable Tribal, federal and state statutes, regulations and ordinances.

 2.30 Loan. “Loan” shall mean the loan or loans made or arranged by the Manager to the Tribe to finance the cost of the Improvements and the
Furniture and Equipment, to provide Working Capital and to fund Start-up Expenses, as provided in Section 3, and to fund such other costs as are specified in this Agreement to be part of the Loan. 
 2.31 Loan Agreement. “Loan Agreement” shall mean the loan agreement(s), as the same may be amended, and any substitutions therefor, with respect to the Loan,
to be executed by the Tribe and the Manager and/or a Financial Institution. 
  

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 2.32 Loan Documents. “Loan Documents” shall mean the Loan Agreement, promissory note(s) evidencing the Loan,
the security agreement securing the Loan and such other documents as may be executed from time to time with respect to the Loan and any amendments thereto and substitutions therefor. 
 2.33 Loan Payments. “Loan Payments” shall mean the principal and other payments due under the Loan Documents. 
 2.34 Management Fee. “Management Fee” shall mean the management fee as provided in Section 6.8. 
 2.35 Minimum Guaranteed Monthly
Payment. “Minimum Guaranteed Monthly Payment” shall mean that payment due the Tribe as described in Section 6.3. 
 2.36 NIGC.
“NIGC” shall mean the National Indian Gaming Commission established pursuant to 25 U.S.C. § 2704, or any amendment to that Section. 
 2.37
Net Revenues. “Net Revenues” shall mean Gross Revenues from the Enterprise less: 
  

	 	(i)	amounts paid out as, or paid-for, prizes and 

  

	 	(ii)	total Operating Expenses, excluding the Management Fee. 

 2.38 Operating
Budget. “Operating Budget” shall mean the budget for Operating Expenses adopted in accordance with Section 4.9. 
 2.39 Operating Expenses.
Notwithstanding treatment under GAAP, “Operating Expenses” shall mean all normal and necessary costs and expenses in the operation of the Improvements as determined in accordance with GAAP including without limitation: (1) interest
expense; (2) depreciation and amortization; (3) salaries, wages, and benefits for the Enterprise Employees (other than the General Manager); (4) materials and supplies; (5) utilities; (6) repairs and maintenance;
(7) accounting fees; (8) interest on installment contract purchases; (9) insurance and bonding; (10) advertising and marketing, including busing and transportation of patrons; (11) transportation services to effect the safe
transport of daily Enterprise receipts (12) legal and professional fees; (13) fees, costs, dues and contributions associated with Tribal and Enterprise membership and participation in trade associations, political action associations and
related associations; (14) fire, safety and security costs; (15) reasonable travel expenses for officers and employees of the Enterprise, when such travel is related to the business of the Enterprise, and for the Chairperson of the Tribe,
members of the Tribal Council and key employees of the Tribe when such travel is related to the business of the Enterprise (16) trash removal; (17) costs of goods and services sold; (18) the costs of the Gaming Commission pursuant to
Section 4.6.6; (19) Enterprise recruiting and training expenses; (20) fees due to the NIGC under IGRA or the State of Michigan or local governments pursuant to the Compact; (21) lease payments for personal property;
(22) internal audit and surveillance costs; (23) property costing less than 

  

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$5,000 as provided in section 2.3 herein; and (24) other costs and expenses determined in accordance with GAAP. Operating Expenses shall not include:
(1) distributions to the Tribe; (2) principal payments on debt; or (3) for purposes of calculations under Section 6, the Manager’s Fee. In determining depreciation as an Operating Expense, the useful life of gaming equipment
shall not exceed five (5) years, other furnishings and fixtures shall not exceed seven (7) years, and of the Gaming Facility shall not exceed thirty-nine (39) years. 
 2.40 Pre-Financing Costs. “Pre-Financing Costs” shall mean those costs incurred by Manager by or on behalf of the Tribe during the period prior to: 1) the Property being taken into trust by the United States
for the benefit of the Tribe; 2) the approval of this Agreement and the Loan Documents by the Chairman of the NIGC; and 3) Manager’s securing a Loan, whichever occurs later, which are to be repaid by the Tribe under the terms of this Agreement
and the Loan Documents. 
 2.41 Plans and Specifications. “Plans and Specifications” shall mean the plans and specifications specified in
Section 3.1.6 herein and shall generally refer to the drawings (graphic and pictorial portions showing the design, location and dimensions, including plans, schedules and diagrams) and specifications (written requirements for materials,
equipment, systems, standards and workmanship and performance of related services) for the Project. 
 2.42 Preferred Payment. “Preferred Payment”
shall mean that payment due the Tribe as described in Section 6.4. 
 2.43 Project. “Project” shall mean the Property, the Improvements and
the Enterprise. 
 2.44 Project Costs. “Project Costs” shall mean all costs necessary to develop and open the Project, including Development and
Construction Costs, furniture, fixtures and equipment, Working Capital, Pre-Financing Costs, Start-Up and Pre-opening Costs, and the Tribal Operations Loan. 
 2.45 Promotional Allowances. “Promotional Allowances” shall mean the retail value of complimentary food and beverage, merchandise, entertainment and tokens for gaming, provided to patrons as promotional items. 
 2.46 Property. “Property” shall mean the parcel of land acquired by Manager or the Tribe which is to be transferred in trust to the United States for the
benefit of the Tribe upon satisfaction of the Legal Requirements, on which the Gaming Facility is planned to be located, as contemplated by Section 3.8. Title to the Property shall be held by the United States of America in trust for the Tribe.

 2.47 Recoupment Payment. “Recoupment Payment” shall mean the repayment from the Tribe’s share of Net Revenues of: (a) any advance made
by the Manager to the Tribe of a Minimum Guaranteed Payment as contemplated by Section 6.3; (b) any portion of the Management Fee which is not paid to the Manager as provided in Section 6.7; (c) any portion of 

  

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the Loan Principal owed Manager by the Tribe due to insufficient Net Revenues payable to the Tribe. 
 2.48 Reserve Funds. “Reserve Funds” shall mean the Capital Reserve Fund and such additional reserve funds as the parties, by mutual consent, may agree to
create. 
 2.49 “Start-Up and Pre-Opening Costs” shall mean all those costs incurred for the Enterprise during the six month period prior to the
scheduled Commencement Date necessary to prepare the Gaming Facility for opening. 
 2.50 Term. “Term” shall mean the seven-year term of this
Agreement as specified in Section 3.2. 
 2.51 Tribal Council. “Tribal Council” shall mean the Tribal Council created pursuant to the
Tribe’s Constitution or, at the option of the Tribal Council, a designee committee created pursuant to resolution or ordinance of the Tribal Council. 
 2.52 Tribal Gaming Ordinance. The “Tribal Gaming Ordinance” is the ordinance and any amendments thereto enacted by the Tribe, which authorizes and regulates Gaming on Indian lands within the jurisdiction of the Tribe. 

2.53 Tribe’s Project Coordinator. The “Tribe’s Project Coordinator” shall mean the individual hired by the Tribal Council to act as the liaison
between the Tribal Council and the Manager and Architect, and assist the Tribal Council in providing Tribal approvals to Manager and Architect that are necessary for the design and construction of the Improvements, as more fully set forth in section
3.1.7.2 herein and under the 2002 Architect Agreement between Manager and the Architect. 
 2.54 Tribe’s Share of Net Revenues. The “Tribe’s
Share of Net Revenues” shall mean 100% of the Net Revenues less the Management Fee as that term is defined in section 6.7 herein. Such Tribal share of Net Revenues shall be subject to the deduction and payments for debt service, capital
expenses and reserve funds as provided in section 6 herein. 
 3 Covenants. In consideration of the mutual covenants contained in this Agreement, the Parties
agree and covenant as follows: 
 3.1 Engagement of Manager. The Tribe hereby retains and engages Manager as an independent contractor for the Term, and
Manager accepts such engagement. The Tribe retains the Manager to manage the Enterprise and train Tribal members and others in the management of the Enterprise in accordance with the terms of this Agreement. The Manager hereby accepts such retention
and engagement. The Tribe shall have the sole proprietary interest in the Enterprise. Nothing contained herein grants or is intended to grant Manager a titled interest to the Gaming Facility or to the Enterprise. Pursuant to its engagement by the
Tribe, Manager shall undertake the duties as set forth herein. 
  

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 3.1.1 Community Center Contribution. The Manager has contributed the sum of Three Hundred Thousand Dollars ($300,000)
towards the construction of a Tribal Community Center, and assisted the Tribe in supervising the design and completion of construction of the Tribal Community Center. Such contribution shall constitute a gift from Manager to the Tribe and shall not
be included in the Loan. 
 3.1.1.1 Manager’s Payment of Pre-Financing Costs. Notwithstanding anything to the contrary, upon execution of this Agreement
by the Parties, Manager shall finance all reasonable costs related to obtaining Government Agency approvals, architect and engineering services, and other professional services as may be required by the Parties to advance the Project. Manager shall
provide the Tribe monthly statements, which shall be audited by the Tribe, of all Pre-Financing Costs incurred by or on the Tribe’s behalf for review and acceptance by the Tribe. 
 3.1.2 Development and Construction Costs. The Manager shall have the responsibility to supervise, through an architect selected by the Manager with the approval of the Tribe (the “Architect”), the design and
completion of all construction, development, improvements and other activities related to the Project undertaken pursuant to the terms and conditions of the contract(s) with the General Contractor and will require the General Contractor and its
subcontractors to furnish appropriate payment and performance bonds. Subject to section 3.1.6, the Manager agrees to provide or cause to be provided all funds necessary for the Development and Construction Costs. The Manager shall, upon submission
of invoices and certification by the General Contractor and by the Architect to the Manager and the Tribe, reimburse the General Contractor and Architect for their services. 
 3.1.3 Equipment Costs. The Manager shall purchase or lease on behalf of the Enterprise the necessary Furniture and Equipment, with the approval of the Tribe, which Furniture and Equipment, when purchased, shall be
owned by the Tribe. The Manager agrees to arrange for a loan to the Tribe of the funds necessary for the purchase or lease of such Furniture and Equipment as may reasonably be required for a Gaming Facility of the size and quality agreed upon by the
Parties; it is the Parties’ intent to construct a 136,000 square foot structure in which Gaming Facility will be located. The Manager may, upon securing lease financing, lease all or a portion of such Furniture and Equipment, subject to the
Tribe approving the terms of the lease, provided that the Manager, or an officer, director, or principal shareholder of Manager, shall have no financial interest in the leasing entity. 
 3.1.4 Working Capital. The Manager agrees to provide to the Enterprise the funds necessary for working capital on or before the Commencement Date for the operation of the Enterprise on a sound business basis and in
accordance with an approved Operating Budget. The Manager shall be responsible for providing any needed additional working capital. The amount provided for Working Capital and additional working capital shall be included in Project Costs and shall
not increase the total Project Cost above that stated in section 3.1.7. 
 3.1.5 Start-Up and Pre-Opening Expenses. Prior to the Commencement Date, the
Manager 

  

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agrees to provide to the Enterprise the funds necessary for Startup and Pre-Opening expenses that are required for the operation of the Enterprise on a sound
business basis and in accordance with an approved Operating Budget. 
 3.1.6 Plans and Specifications; Cost Overruns. The Manager and the Tribe, through the
Tribal Council, shall agree to Plans and Specifications for the Gaming Facility, defining all activities, materials and services necessary for the Improvements and the Enterprise. If there are cost overruns for any activity, material or service
previously agreed to that are required for the Project, the Manager shall advance to the Tribe an additional amount equivalent to such overruns as agreed in Section 2 of the Loan Agreement to achieve the goals of this Agreement; provided
however, that in no event shall cost overruns for the Improvements exceed ten percent (10%) of the Project Cost amount set out in section 3.1.7, without negotiation between the Parties. 
 3.1.7 Project Costs. Subject to 3.1.6, the Manager and the Tribe agree that the total project cost shall not exceed One Hundred and Forty-Two Million Dollars
($142,000,000) and that Manager shall cause to be advanced Projects Costs for the Project in accordance with the terms and conditions herein not to exceed One Hundred and Forty-Two Million Dollars ($142,000,000). 
 3.1.7.1. Unforeseen Circumstances. In the event that circumstances beyond the Parties’ control necessitate an increase to the Project Cost ceiling amount of
$142,000,000, Manager shall advance such additional sums as may be required subject to the limitations set out in section 3.1.6 herein. 
 3.1.7.2. Hiring of
the Tribe’s Project Coordinator. The Parties agree that in order for the Tribal Council to timely review the Plans and Specifications and provide necessary approvals to Manager and Architect under the terms of the Architect Agreement, Manager
shall promptly advance funds to the Tribe, upon written request by the Tribe, after the Parties jointly agree to issue a Notice to Proceed to the Project’s architect to prepare design plans for the Gaming Facility, so that the Tribe may hire
the Tribe’s Project Coordinator. The cost of the Tribe’s Project Coordinator position shall be a Project Cost from the date of the Project Coordinator’s hiring until the Commencement Date. The Parties have agreed upon an annual salary
range of $80,000-$90,000 for the position based upon the Project Coordinator’s qualifications and level of experience. The Tribe has sole discretion to fill the Project Coordinator position as a consultant to the Tribe, a full-time Tribal
employee, or combination thereof. For the period that the Tribe’s Project Coordinator may be a full-time employee of the Tribe, the Parties agree that the Tribe’s standard fringe benefits package will also constitute a Project Cost until
the Commencement Date. Thereafter, the costs of the Tribe’s Project Coordinator will be borne solely by the Tribe. 
 3.1.8 Loan Advances. The Manager
shall provide or cause to be provided all funds required in Sections 3.1.1.1, 3.1.2, 3.1.3, 3.1.4, 3.1.5, 3.1.6, 3.1.7, 3.1.7.1, 3.1.7.2, and 6.13 as loan advances on behalf of the Tribe, to be repaid in accordance with this Agreement and the Loan
Agreement. Except as otherwise provided herein, advances under said Sections shall be made only upon adequate documentation that an obligation has been incurred and such obligation is currently due 

  

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and owing and after review by the Manager and by the Tribe. Any amounts provided by the Manager for the purposes of this Section 3.1 shall be deemed
advanced pursuant to, payable under, and shall accrue interest as set forth in this Agreement and the Loan Agreement and the promissory note or notes evidencing the Loan. The interest rate on the Loan shall be the Manager’s cost of funds from a
Financial Institution which shall be based on prevailing interest rates subject to the provisions of Section 3.2 of the Loan Agreement. Any funds advanced under this Section 3.1 shall only be repayable as provided in Section 6.5 and
from the Collateral and shall not otherwise be an obligation of the Tribe. The Loan shall be secured by a first lien on the Collateral. Interest accrued under this section shall become part of the Loan, as principal, as of the Commencement Date.

 3.2 Term. The Term of this Agreement shall begin on the Effective Date and continue for a period of seven (7) years after the Commencement Date,
except as provided in Section 4.5. 
 3.3 Exclusivity of Operations. During the Term neither the Manager nor the Tribe will establish or operate any
other Gaming within fifty (50) miles of the Property without the express written consent of the other Party. 
 3.4 Parties’ Compliance With Law;
Licenses. Manager and Tribe will at all times comply with all Legal Requirements. All Gaming covered by this Agreement shall be conducted in accordance with all Legal Requirements. Manager shall take no action or engage in any activity that would
cause the Tribe to be in violation of any Legal Requirements, and the Tribe shall take no action or engage in any activity that (i) would cause Manager or the members of Manager to be in violation of any Legal Requirements or (ii) could
result in the revocation of any gaming license held by Manager or the members of Manager. 
 3.4.1 Conflicting Legal Requirements. The Manager shall not be
obligated to comply with any Tribal Ordinance or other Tribal law if to do so would cause the Manager to violate any applicable non-Tribal law. 
 3.4.2
Licenses. The Manager, Manager’s executive officers and all other persons required by applicable law shall seek a license to operate the Enterprise pursuant to the Tribal Gaming Ordinance. The Gaming Commission shall act upon all such license
applications promptly and may not arbitrarily or capriciously deny any license sought under this Subsection 3.4.2. 
 3.4.3 Indian Civil Rights Act. The
Tribe shall take no action that violates the Indian Civil Rights Act (25 U.S.C. §§ 1301-1303) or the Tribe’s Constitution. 
 3.4.4 Internal
Revenue Code and Bank Secrecy Act. The Manager shall comply with all applicable provisions of the Internal Revenue Code and the Bank Secrecy Act including, but not limited to, the prompt filing of any cash transaction reports and W-2G reports that
may be required by the Internal Revenue Service of the United States or under the Compact. 
 3.4.5 Compliance With the National Environmental Policy Act.
The Parties shall supply the 

  

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NIGC with all information requested by the NIGC to comply with any regulations of the NIGC issued pursuant to the National Environmental Policy Act (NEPA).

 3.5 Management Fee. Subject to the terms of this Agreement, The Tribe agrees to pay the Manager the Management Fee as provided in Section 6.7.

 3.6 Fire and Safety. The Gaming Facility shall be constructed and maintained in compliance with the standard uniform BOCA code concerning fire and safety,
provided that nothing in this Agreement shall grant any jurisdiction to any state government or any political subdivision thereof over the Property or the Gaming Facility. 
 3.6.1 Fire Protection. The Manager shall have the responsibility to provide the Gaming Facility with adequate fire protection services and equipment, including sprinklers. The Tribe shall have the responsibility for
obtaining cooperative agreements under which the BIA, and/or local municipalities with volunteer fire departments, shall agree to provide fire fighting services in the event of a fire at the facility. The costs of fire protection under this Section
shall be an Operating Expense. 
 3.6.2 Public Safety Services. The Manager shall provide appropriate security and public safety services for the operation
of the Enterprise. All aspects of the Gaming Facility security shall be the responsibility of the Manager. Any security officer shall be bonded and insured in an amount commensurate with his or her enforcement duties and obligations. The cost of any
charge for security and increased public safety services, including police protection and emergency medical services, shall be an Operating Expense. 
 3.7
Uniform Commercial Code. Subject to the requirements of this Agreement, the parties agree that Articles I, II, III, IV, V, VI, VII, and IX of the Uniform Commercial Code, as adopted by the State of Michigan, shall govern this Agreement and all
activities and contracts involving the Enterprise. All filings for perfection pursuant to Article IX shall be done with the Secretary of State for the State of Michigan unless the Tribe shall establish an office to receive such filings. Nothing in
this Section shall constitute a waiver of tribal sovereign immunity, written notification requirements, or constitute consent of the Tribe to the regulatory, adjudicatory or other jurisdiction of the State of Michigan. 
 3.8 Purchase of Property. Manager has purchased a parcel of land on which the Gaming Facility is planned to be built, the cost of which shall be repaid by the Tribe
through the Loan. The legal description of the property is contained in the August 9, 2002, Federal Register notice (67 Fed. Reg. 51867) issued by the BIA (“Notice of final agency determination to take land into trust under 25 C.F.R. part
151”), made an exhibit to this Agreement (Exhibit A) and incorporated herein. Subject to the Legal Requirements, it is the intent of the parties to this Agreement that the parcel shall be transferred to the United States in trust for the
benefit of the Tribe and proclaimed part of the Tribe’s initial reservation. If, for any reason, the above-described property cannot be placed in trust with the United States, or in the event that the Parties cannot build and operate a Gaming
Facility on the property under IGRA, the Parties agree to obtain a suitable parcel of land in accordance with the Legal Requirements. 
  

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 4 Business Affairs in Connection with Enterprise. 
 4.1 Manager’s Authority and Responsibility. All business and affairs in connection with the day-to-day operation, management, maintenance and improvement of the Gaming Facility, including the establishment of
operating days and hours, consistent with the Tribal Gaming Ordinance, shall be the responsibility of the Manager. The Manager is hereby granted the necessary power and authority to act, through the General Manager, in order to fulfill its
responsibilities under this Agreement. The General Manager shall be a person selected by the Manager, subject to the approval of the Tribe, which approval shall not be unreasonably withheld. 
 4.1.1 Manager’s Authority and Responsibility Regarding Additional improvements. The Parties agree that Manager’s share of revenues derived from additional
improvements which the Tribe may choose to build on or near the Property after the Commencement Date shall be dependent on Manager’s involvement in financing such improvement(s), and the level of Manager’s duties and responsibilities
associated with the planning, design, construction, operation and maintenance of any such improvement(s), or the activities occurring in the improvement(s), all as the Tribe may delegate to Manager, and the Parties agree upon through subsequent
negotiation. Nothing herein shall deny Manager the exclusive right, during the term of this Agreement, to operate any and all Gaming activities on the Property on the Tribe’s behalf as may be permitted under IGRA and the Tribe-State compact.

 4.2 Duties of the Manager. In managing, operating, maintaining, improving and repairing the Gaming Facility, the cost of which shall be either an
Operating Expense or Capital Expense, the Manager’s duties shall include, without limitation, the following: 
 4.2.1 Management. The Manager shall use
reasonable measures for the orderly administration, management, and operation of the Enterprise including without limitation cleaning, painting, decorating, plumbing, carpeting, grounds care and such other maintenance and repair and improvement work
as is reasonably necessary. 
 4.2.2 Contracts in Enterprise’s Name and at Arm’s Length. Contracts for the operations of the Enterprise shall be
entered into in the name of the Enterprise and be signed by the General Manager. Except in the event of an emergency, any contract requiring an expenditure in any year in excess of Twenty-Five Thousand Dollars ($25,000) shall be approved by the
Tribe. No contracts for the supply of goods or services to the Enterprise shall be entered into with parties affiliated with the Manager or its officers or directors unless the affiliation is disclosed to the Tribe in writing, and the contract terms
are determined by the Tribe to be no less favorable for the Enterprise than could be obtained from a non-affiliated contractor. Notwithstanding anything to the contrary contained herein, contracts for the supply of any goods or services paid for
entirely by the Manager may be provided by parties affiliated with the Manager or its officers or directors, provided that payments on such contracts shall not constitute Operating Expenses and 

  

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shall be the sole responsibility of the Manager. Absent the prior written approval of the Tribal Council, no contract entered into by Manager or entered into
in the name of the Enterprise shall contain as a provision a waiver of the Tribe’s sovereign immunity from suit. 
 4.2.3 Culturally Sensitive Material.
The Manager agrees that the choices involving the Enterprise and the Gaming Facility including but not limited to the Enterprise Employees’ uniforms, interior design, promotions and marketing shall be culturally appropriate and shall in no way
denigrate Indian history or culture by the use of stereotyped images, symbols and language. If, at any time, the Manager is notified by the Tribe that any such activity is not culturally appropriate, the Manager shall have thirty (30) days to
cease such activity. 
 4.3 Damage, by fire, war casualty, Act of God, Condemnation. 
 4.3.1 If, during the Term, the Gaming Facility is damaged or destroyed by fire, war, Act of God or other casualty, or if the Property or the Gaming Facility is partially condemned, the Manager agrees to carry
sufficient insurance to rebuild the Gaming Facility and shall reconstruct the Gaming Facility to a condition at least comparable to that before the casualty or partial condemnation occurred. The insurance or condemnation proceeds shall be applied to
that reconstruction, which shall be completed as soon as possible. If the insurance or condemnation proceeds are insufficient to reconstruct the Gaming Facility to such condition where Gaming can once again be conducted, the Manager may supply such
additional funds as are necessary to reconstruct the Gaming Facility to such condition and such funds shall, with the prior consent of the Tribe, constitute a loan to the Tribe, secured by the revenues from the Enterprise as Collateral, and
repayable under the terms of the Loan Agreement unless other terms are agreed upon by the Tribe and the Manager. 
 4.3.2 Total condemnation. In the event
that the Enterprise or the Property is condemned in total by a governmental agency with the lawful authority to carry out such an action, the proceeds from any such condemnation award shall be applied (i) to retire any amounts due under the
Loan Agreement, and, if any sums remain, (ii) to pay the Tribe, as owner for the value of the land, buildings, and fixtures; provided, however, that any condemnation award that includes lost profits shall be shared between the Parties, with the
allocation to Manager calculated on the basis of Manager’s remaining term and its percentage share of Net Revenues. The Parties shall retain all money previously paid under Section 6 of this Agreement. 
 4.4 Manager’s Obligation; Suspension of Manager’s Duties. The Manager’s obligations under this Agreement, except for its obligation under Sections 3.1.1.1
and 6.13, are conditioned on (i) NIGC approval of this Agreement and (ii) the timely issuance of all required approvals for the construction of the Gaming Facility. If during the Term, Gaming on the Property is: (i) legally prohibited
or (ii) rendered economically unfeasible as a result of the Tribe’s default under this Agreement or the adoption of a Tribal Ordinance or other Tribal law, the Manager may suspend its duties under this Agreement. 
 4.5 Tolling of the Agreement. If, after a period of cessation of Gaming on the Property 

  

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because of damage, destruction or condemnation or because Gaming on the Property is: (i) legally prohibited or (ii) rendered economically
unfeasible as a result of the Tribe’s default under this Agreement or the adoption of a Tribal Ordinance or other Tribal law, the recommencement of Gaming shall be legally and commercially feasible in the sole judgment of the Manager, and if
the Manager has not terminated this Agreement, the period of such cessation shall not be deemed to have been part of the Term and the date of expiration of the Term shall be extended by the number of days of such cessation period; provided that the
extension shall not exceed twelve months. 
 4.6 Employees. 
 4.6.1 Manager’s Responsibility. Manager shall have, subject to licensing by the Gaming Commission and the terms of this Agreement, the exclusive responsibility and authority to hire, direct, select, control and discharge all Enterprise
Employees, including security personnel, performing regular services for the Enterprise in connection with the maintenance, operation, and management of the Enterprise and the Gaming Facility and any activity upon the Property; and the sole
responsibility for determining whether a prospective employee is qualified and the appropriate level of compensation to be paid. Manager will make all reasonable efforts to hire members of the Tribe into management positions for the Enterprise and
to provide training of such personnel as required under sections 4.6.8 and 9.18.3 of this Agreement. Such efforts will include without limitation hiring qualified members of the Tribe in the management positions for the Enterprise. 
 4.6.2 Enterprise Employee Policies. The Manager shall prepare a draft of personnel policies and procedures (the “Enterprise Employee Policies”), including a
job classification system with salary levels and scales, which policies and procedures the Manager shall submit to the Tribal Council for its approval. The Enterprise Employee Policies shall include a grievance procedure in order to establish fair
and uniform standards for the employees of the Tribe engaged in the Enterprise as required by NIGC regulations. The grievance procedure shall be administered by a Grievance Committee comprised of the General Manager, a person appointed by the Tribal
Council and a third member agreed on by the Manager and the Tribal Council. Any revisions to the Enterprise Employee Policies shall not be effective unless they are approved in the same manner as the original Enterprise Employee Policies. All such
actions shall comply with applicable Tribal law. 
 4.6.3 Manager’s Employee. The Manager shall employ the person holding the position of General
Manager. 
 4.6.4 Enterprise Employees. Employees of the Enterprise will be designated as employees of the Tribe. 
 4.6.5 No Manager Wages or Salaries. Except for the Management Fee, neither the Manager nor any of its officers, directors, shareholders, or employees shall be
compensated by wages from or contract payments other than the Management Fee by the Enterprise for their efforts or for any 

  

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work which they perform under this Agreement. Nothing in this subsection shall restrict the ability of an employee of the Enterprise to purchase or hold
stock in the Manager, its parents, subsidiaries or affiliates where (i) such stock is publicly held, and (ii) such employee acquires, on a cumulative basis, less than five percent (5%) of the outstanding stock in the corporation,
provided that no elected member of the Tribal Council shall be permitted to have any financial interest in Manager. The Manager is prohibited from hiring consultants to perform Manager’s responsibilities. 
 4.6.6 Access of Gaming Commission and Appointed Agents. The Gaming Commission or its appointed agents shall have the full access to inspect all aspects of the
Enterprise, including the daily operations of the Enterprise, and to verify daily Gross Revenues and all income of the Enterprise, at any time without notice. The Enterprise shall reimburse the Tribe for the reasonable costs of operation of the
Gaming Commission as an Operating Expense of the Enterprise up to a maximum annual amount of two million dollars ($2,000,000). 
 4.6.7 Employee Background
Checks. A background investigation shall be conducted in compliance with all Legal Requirements, to the extent applicable, on each applicant for employment as soon as reasonably practicable. No individual whose prior activities, criminal record, if
any, or reputation, habits and associations are known to pose a threat to the public interest, the effective regulation of Gaming, or to the gaming licenses of the Manager or any of its affiliates, or to create or enhance the dangers of unsuitable,
unfair or illegal practices and methods and activities in the conduct of Gaming, shall be employed by the Manager or the Tribe. The background investigation procedures employed shall be formulated in consultation between the Tribe and the Manager
and shall satisfy all regulatory requirements independently applicable to the Manager. Any cost associated with obtaining such background investigations shall constitute an Operating Expense, provided, however, the costs of background investigations
relating to shareholders, officers, directors or employees of the Manager shall not constitute an Operating Expense, but shall be paid by the Manager. 
 4.6.8 Indian Preference in Employment. In order to maximize benefits of the Enterprise to the Tribe, the Manager shall, during the term of this Agreement, to the extent permitted by applicable law, give preference in recruiting, training
and employment to qualified members of the Tribe and their spouses and children in all job categories of the Enterprise, including management positions. The Manager shall provide training programs for Tribal members and their spouses and children.
Such training programs shall be available to assist Tribal members in obtaining necessary skills and qualifications relating to all job categories. Final determination of the qualifications of Tribal members and all other persons for employment
shall be made by Manager, subject to licensing by the Gaming Commission. 
 4.6.9 Removal of Employees. The General Manager will act in accordance with the
Enterprise Employee Policies with respect to the discharge, demotion or discipline of any Enterprise Employee. 
  

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 4.7 Marketing and Advertising. Manager shall have the responsibility for setting the advertising budget and placing
advertising and promoting the Enterprise, the budget for which shall be included in the annual budget approved by the Tribe as described in Section 4.9. Manager may participate in sales and promotional campaigns and activities involving
complimentary rooms, food, beverage, shows, chips and tokens, provided that Manager shall receive no compensation or other remuneration from any marketing, advertising, sales or promotional campaign. 
 4.8 Start-Up and Pre-Opening. Six (6) months prior to the scheduled Commencement Date, Manager shall commence implementation of a Start-Up and Pre-Opening program
which shall include all activities necessary to financially and operationally prepare the Gaming Facility for opening. To implement the Start-Up and Pre-Opening program, Manager shall prepare a comprehensive Start-Up and Pre-Opening budget which
shall be submitted to the Tribe for its approval sixty (60) days after the Effective Date (“Pre-Opening Budget”). All costs and expenses of the Pre-Opening program shall be paid from a special bank account(s) opened by Manager in the
name of the Enterprise upon which only Enterprise’s designees shall be authorized to draw (“Pre-Opening Bank Account(s)”). After all Start-Up and Pre-Opening expenses have been paid, the balance in the Start-Up and Pre-Opening Bank
Account(s) shall be transferred to the Depository Account established under section 4.13.2 and the Start-Up and Pre-Opening Bank Account(s) closed. 
 4.9
Operating and Capital Expense Budgets. 
 4.9.1 Approval of Budgets. Manager shall, at least sixty (60) days prior to the scheduled Commencement Date,
submit to the Tribe, for its approval, a proposed Operating Budget and Capital Expense Budget for the remainder of the current fiscal year. Thereafter, Manager shall, not less than sixty (60) days prior to the commencement of each full or
partial fiscal year, submit to the Tribe, for its approval, proposed Budgets for the ensuing full or partial fiscal year, as the case may be. Manager shall meet with the Tribe to discuss the proposed Budgets and the Tribe’s approval of the
Budgets shall not be unreasonably withheld. 
 4.9.2 Budget Revisions. Manager may submit to the Tribe revisions in the Budgets from time to time, as
necessary, to reflect any unpredicted significant changes, variables or events or to include significant, additional, unanticipated items of income or expense. With approval of the Tribe, Manager may reallocate part or all of the amount budgeted
with respect to any line item to another line item and to make such other modifications to the Budget as Manager deems necessary. The Manager shall not make any expenditures from funds or assets of the Enterprise except as set forth in the Budgets.

 4.10 Contracting. In entering contracts for the supply of goods and services for the Enterprise, the Manager shall give preference to qualified members of
the Tribe, their spouses and children, and qualified business entities certified by the Tribe to be controlled by members of the Tribe so long as the prices and/or rates are competitive. “Qualified” shall mean a member of the Tribe, a

  

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Member’s spouse or children, or a business entity certified by the Tribe to be controlled by members of the Tribe, who or which is able to provide goods
and/or services at competitive prices and/or rates, has demonstrated skills and abilities to perform the tasks to be undertaken in an acceptable manner, in the Manager’s opinion, can meet the reasonable bonding requirements of the Manager, and
if a vendor is licensed by the Gaming Commission. The Manager shall provide written notice to the Tribe in advance of all such contracting, subcontracting, and construction opportunities. 
 4.11 Litigation. If the Enterprise, the Tribe, the Manager, or any employee of the Enterprise or any employee of Manager is sued by any person who is not a party to this
Agreement, including claims involving tort or breach of contract, or is alleged by any such person to have engaged in unlawful or discriminatory acts in connection with the operation of the Enterprise, the Tribe or the Manager, as appropriate, shall
defend such action. Any cost of such litigation shall constitute an Operating Expense, or, if incurred prior to the Commencement Date, shall be a start-up expense. Nothing in this Section 4.11 shall be construed to waive or limit the
Tribe’s sovereign immunity. 
 4.12 Internal Control Systems. The Manager shall install systems for monitoring the Enterprise (the “Internal
Control Systems”) prior to the Commencement Date as required by 25 C.F.R. Part 542 of the NIGC Minimum Internal Control Standards (“MICS”) for Tier C gaming operations. The Internal Control Systems shall comply with all Legal
Requirements. The Manager shall submit the Internal Control Systems to the Gaming Commission and any other governmental agency required to approve such systems prior to their implementation. Any significant changes to the Internal Control Systems
shall be subject to review and approval by the Gaming Commission and the Tribal Council prior to implementation. The Gaming Commission shall have the right, at any time, to inspect and review the Internal Control Systems and to retain an auditor to
(i) review the adequacy of the Internal Control Systems and (ii) perform internal audit functions at a minimum to meet the requirements of 25 C.F.R. Part 542 of the NIGC MICS. To the extent not covered above, Manager shall also install
such other security system(s) as are standard in the gaming industry to prevent theft, fraud or other illegal activity by either employees or Gaming patrons so as to ensure the integrity of the Enterprise’s Gaming activities. 
 4.12.1 The Manager shall install and maintain a closed circuit television system to be used to provide surveillance over Gaming areas, including all cash handling
activities of the Enterprise to meet all Legal Requirements. Manager shall also install surveillance systems over non-gaming areas, including parking areas, to better ensure the safety of the public. The Gaming Commission shall have full access to
the closed circuit television system for use in monitoring the activities of the Enterprise. 
 4.13 Banking and Bank Accounts. 
 4.13.1 Bank Accounts. The Tribe and Manager shall agree upon a bank or banks for the deposit 

  

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and maintenance of funds and shall establish such bank accounts insured by the FDIC as they deem appropriate and necessary in the course of business and as
consistent with this Agreement. 
 4.13.2 Daily Deposits to Depository Account. The Manager with the Tribe’s approval shall establish for the benefit of
the Enterprise in the Enterprise’s name a Depository Account. The Manager shall collect all Gross Revenues and other proceeds connected with or arising from the operation of the Enterprise, the sale of all products, food and beverage, and all
other activities of the Enterprise and deposit the related cash daily into the Depository Account at least once during each 24-hour period except where deposit cannot be made during a 24 hour period because (1) it is a Bank holiday or
(2) an Act of God prevents the deposit of proceeds in the place designated for deposit in which case the deposit shall be made on the next business day. All money received by the Enterprise on each day that it is open must be counted at the
close of operations for that day or at least once during each 24-hour period except to the extent that slot machine drop for that day is insufficient to warrant daily drops and count, and no payment or other distribution out of Gross Revenues shall
be made before their deposit. The Parties agree to obtain a bonded transportation service to effect the safe transportation of the daily receipts to the bank, which expense shall constitute an Operating Expense. 
 4.13.3 Disbursement Account. The Manager with the Tribe’s approval shall establish for the benefit of the Enterprise in the Enterprise’s name one or more
disbursement accounts (collectively, the “Disbursement Accounts”). Separate Disbursement Accounts shall be maintained for the various Reserve Funds. The Manager shall, consistent with and pursuant to the Budgets, have responsibility and
authority for transferring funds from the Depository Account to the Disbursement Accounts and for making all payments for Operating Expenses, Capital Expenses, debt service, the Management Fee and disbursements to the Tribe from the Disbursement
Accounts. 
 4.13.4 No Cash Disbursements. The Manager shall not make any cash disbursements from the bank accounts. The Manager shall not make any cash
disbursements to itself from any Enterprise fund or account for any reason. Except as provided in Section 4.13.5, any other payments or disbursements by the Manager shall be made by check drawn against a Disbursement Account. 
 4.13.5 Minimum Casino Bank Roll. Manager shall establish and maintain sufficient cash operating funds in the Enterprise vault and cage or other readily accessible funds
to meet the daily operating needs of the Enterprise (including non-gaming activities). The size of these funds shall be determined with due regard to the Operating Budget and applicable Federal regulations setting minimum internal control standards
for Class II and Class III devices. 
 4.13.6 Capital Reserve Fund. The Manager shall establish and maintain for the benefit of and in the name of the
Enterprise a Capital Reserve Fund to pay Capital Expenses in accordance with the Capital Expense Budget. To the extent that Net Revenues are available under the terms of Article 6 herein, the Manager shall deposit monthly in the Capital Reserve Fund
an amount equal 

  

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to two percent (2%) of the Net Revenues, provided that without the consent of the Tribe the Capital Reserve Fund balance shall not exceed Four Million
Dollars ($4,000,000). Any interest earned on the Capital Reserve Fund shall be added to the Capital Reserve Fund, subject to the Four Million Dollar ($4,000,000) cap, and otherwise distributed to the Tribe on a monthly basis. 
 4.13.7 Investments. The Manager may invest any of the funds in the Reserve Funds in bank accounts, treasury bills or other instruments guaranteed or insured by the
United States with a term not to exceed three months unless the Manager and Tribe agree otherwise. All bank accounts shall be insured by the FDIC or other mutually agreed upon commercial insurance or shall be adequately collateralized by the
Financial Institution. 
 4.14 Insurance. The Manager, on behalf of the Tribe, shall obtain and maintain, or cause its agents to obtain and maintain, with
responsible insurance carriers licensed to do business in the State of Michigan, insurance satisfactory to the Tribe covering the Property and the Enterprise, and naming the Tribe, the Enterprise, the Manager, its parent and other affiliates as
insured parties, as follows: 
 4.14.1 During the course of any new construction or substantial remodeling, builder’s risk insurance on an “all
risk” basis (including collapse) on a non-reporting form for full replacement value covering the interest of the Tribe in all work associated with the Improvements, all materials and equipment on or about the Gaming Facility, and any new
construction or substantial remodeling of the Gaming Facility. All materials and equipment in any off-site storage location intended for permanent use in the Gaming Facility, or incident to the construction thereof, shall be insured on an “all
risk” basis as soon as the same have been acquired for the Enterprise. 
 4.14.2 Commercial general liability insurance in an amount not less than
Fifteen Million Dollars aggregate for all activities on, about or in connection with the Improvements. The commercial general liability insurance shall include premises liability, contractor’s protective liability on the operations of all
subcontractors, completed operations and blanket contractual liability. The automobile liability insurance shall cover owned, non-owned and hired vehicles. 
 4.14.3 Upon completion of the construction of the Improvements “all risk” insurance on the Gaming Facility against loss by fire, lightning, earthquake, or other natural disasters, extended coverage perils, collapse, water damage,
vandalism, malicious mischief and all other risks and contingencies, in an amount equal to the actual replacement costs thereof, without deduction for physical depreciation, with coverage for demolition and increased costs of construction, and
providing coverage in an “agreed amount” or without provision for co-insurance. 
 4.14.4 Worker’s Compensation and Employer’s Liability
Insurance subject to the statutory limits of the State of Michigan in respect of any work or other operations on, about or in connection with the Enterprise, provided that nothing in the Agreement shall grant any jurisdiction over the Enterprise or
its employees to the State of Michigan or any political subdivision thereof. 
  

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 4.14.5 Business interruption insurance in an amount to cover the projected Operating Expenses, Loan Payments and Minimum
Guaranteed Payment and Preferred Payment for not less than twelve (12) months or such greater amounts as to which the Manager and Tribe may agree. 
 4.14.6 Such other insurance with respect to the Enterprise and in such amounts as the Parties from time to time may reasonably agree upon against such other insurable hazards which at the time are commonly insured against in respect of
businesses and property similar to the Enterprise. 
 4.14.7 The insurance policies required under Subsections 4.14.1, 4.14.3, 4.14.5 and 4.14.6 above all
have a standard noncontributory endorsement naming Manager as an additional loss payee. The insurance required under Subsection 4.14.2 above shall name the Manager as an additional insured. All insurance required hereunder shall contain a provision
requiring at least sixty (60) days’ prior written notice to the Manager and the Tribe before any cancellation, material changes or reduction shall be effective. Any deductibles must be approved by Manager and the Tribe. 
 4.14.8 Each policy as to which the Tribe is named as an insured shall provide that the insurer shall not plead or assert the defense of sovereign immunity within the
policy limits. The Tribe shall not be liable beyond those limits. 
 4.15 Accounting and Books of Account. 
 4.15.1 Financial Statements. The Manager shall prepare and provide monthly, quarterly and annual financial reports and operating statements to the Tribal Council and the
Gaming Commission and to such other governmental agencies as the Compact or applicable law may require. The Financial Statements shall comply with all Legal Requirements and shall include balance sheets, income statements, and statements of cash
flow (statement of changes in financial position) for the Enterprise, including a breakdown by gaming activity. Such statements shall include the Operating Budget and Capital Budget projections (the Annual Plan) as comparative statements, and, after
the first full year of operation, shall include comparative statements from the comparable period for the prior year of all revenues, and all other amounts collected and received and all deductions and disbursements made therefrom in connection with
the Enterprise. The Operating Statements shall include, at a minimum, game statistical reports. All such statements shall be prepared in accordance with GAAP consistently applied. 
 4.15.2 Books of Account. The Manager shall maintain full and accurate books of account and records at the Property. The Gaming Commission, and any tribal government official authorized by law to have such access,
shall have immediate access to the daily operations of the Enterprise, including the books and records, and shall have the unlimited right to inspect, examine, and copy all such books and supporting business records, and the right to verify the
daily Gross Revenues and income from the Enterprise and shall have access to any other gaming related information the Tribe deems appropriate. Such rights may be exercised through a duly authorized agent, employee, attorney, or independent
accountant acting on behalf of the Gaming Commission or the authorized tribal government agency, provided that the authority of said individual is first presented in writing to the Manager. 
  

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 4.15.3 Accounting and Audit Standards. Manager shall establish and maintain satisfactory accounting systems and
procedures which comply with all applicable Legal Requirements, including NIGC regulations establishing Minimum Internal Control Standards for internal audit for Tier C gaming operations. Such accounting systems and procedures, at a minimum, shall
(i) include an adequate system of internal accounting controls; (ii) permit the preparation of financial statements in accordance with GAAP; (iii) be susceptible to audit; (iv) permit the calculation and payment of the Management
Fee; (v) allow the Enterprise, the Tribe and the NIGC to calculate the annual fee under 25 C.F.R. § 514.1, and such other payments as may be due any other governmental entity; and (vi) provide for any appropriate allocation of
Operating Expenses or overhead expenses among the Tribe, the Enterprise, the Manager and any other user of shared facilities and services. 
 4.15.4 Annual
Audit. An independent certified public accounting firm which is registered with the Public Accounting Oversight Board shall be selected by the Tribal Council and approved by the Gaming Commission for the purpose of performing an annual audit of the
books and records of the Enterprise. Said audit shall meet all Legal Requirements including NIGC audit standards as set out in applicable regulations, including 25 C.F.R. § 571.12 and 542.3(f) and shall, unless otherwise authorized by Tribal
Council resolution, be separate and distinct from any audit required by the Single Audit Act of 1984, 31 U.S.C. § 750 et seq. The Gaming Commission, the NIGC and any other legally authorized government agency shall also have the right to
perform special audits of the Enterprise on any aspect of the Enterprise and its operations at any time without restrictions. Copies of such audits shall be provided by the Tribe to all applicable federal (including the NIGC, within 120 days after
the end of each fiscal year of the gaming operation) and state agencies, as may be required by law or the Compact, and may be used by the Manager for reporting purposes under federal and state securities laws, if required. The fees for the services
of the independent auditor shall be an Operating Expense. 
 5 Liens. The Tribe specifically warrants and represents to the Manager that during the Term the
Tribe shall not act in any way whatsoever, either directly or indirectly, to cause any party to become an encumbrancer or lienholder of the Property or the Enterprise, or to allow any party to obtain any interest in this Agreement without the prior
written consent of the Manager, and where applicable, the consent of the United States. The Manager specifically warrants and represents to the Tribe that during the Term the Manager shall not act in any way, directly or indirectly, to cause any
party to become an encumbrancer or lienholder of the Property or the Enterprise, or to obtain any interest in this Agreement without the prior written consent of the Tribe, and, where applicable, the consent of the United States. The Tribe and the
Manager shall keep the Enterprise and Property free and clear of all enforceable mechanics’ and other enforceable liens resulting from the construction of the Gaming Facility and all other enforceable liens which may attach to the Enterprise or
the Property, which shall at all times remain the property of the United States in trust for the Tribe. If any such lien is claimed or filed, it shall be the duty of the Party responsible for the lien to discharge the lien within thirty
(30) days after 

  

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having been given written notice of such claim, either by payment to the claimant, by the posting of a bond or the payment into the court of the amount
necessary to relieve and discharge the Property from such claim, or in any other manner which will result in the discharge of such claim. Notwithstanding the foregoing, purchase money security interests in personal property may be granted with the
prior written consent of the Tribe and, when necessary, the BIA, United States Department of the Interior and/or the NIGC as appropriate. 
 6 Calculation
and Distribution of Funds. 
 6.1 Calculation and Revenues and Payment of Operating Expenses. On or before the twentieth (20) day after the end of each
calendar month of operations during the Term, the Manager shall calculate and report to the Tribe the Gross Revenues, Operating Expenses, and Net Revenues, together with the distributions made under this section, for such month and the year to date.
From the Gross Revenues, Manager shall pay all Operating Expenses. 
 6.2 Distribution of Net Revenues. After the payment of Operating Expenses, Net Revenues
shall be distributed in the following order of priority set out herein. 
 6.3 Minimum Guaranteed Monthly Payment. On or before the twentieth (20th) day
of each calendar month following the first full calendar month after the Commencement Date, Manager shall pay the Tribe a Minimum Guaranteed Monthly Payment in the amount of Fifty Thousand Dollars ($50,000) (the “Minimum Guaranteed Monthly
Payment”), and such payment shall have priority over the retirement of any Development and Construction Costs. Minimum Guaranteed Monthly Payments shall be charged against the Tribe’s distribution of Net Revenues and, if there are
insufficient Net Revenues in a given month to make the distribution, Manager shall advance the funds necessary to compensate for the deficiency; and shall be reimbursed by the Tribe in the next succeeding month or months as a Recoupment Payment as
provided in Section 6.6 herein. No Minimum Guaranteed Monthly Payment shall be owed for any full months during which Gaming is suspended or terminated at the Gaming Facility pursuant to Sections 4.3 or 4.4, but shall be prorated based on the
number of days that Gaming is conducted during any such month. The obligation shall cease upon termination of this Agreement for any reason. 
 6.4 Payment
of Tribe’s Preferred Payment. In addition to the payment of the Tribe’s Minimum Guarantee, Manager shall next make a second distribution to the Tribe constituting a Preferred Payment in the amount of $200,000 per month, charged against the
Tribe’s distribution of Net Revenues. In the event that there are insufficient Net Revenues in a given month to make the distribution, then the shortfall shall be paid to the Tribe in the next succeeding month or months. No payment of the
Tribe’s Preferred Payment shall be owed for any full months during which Gaming is suspended or terminated at the Gaming Facility pursuant to Sections 4.3 or 4.4 but shall be prorated based on the number of days that Gaming is conducted during
any such month. The obligation shall cease upon termination of this Agreement for any reason. 
 6.5 Repayment of Loan Principal. Until repaid in full, the
Manager shall be entitled to an amount sufficient to repay principal due on the Loan. The principal amounts due under this 

  

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Section 6.5 shall be paid out of the Tribe’s share of Net Revenues in monthly payments amortized over the Term of this Agreement. In the event that
there are insufficient Net Revenues in a given month to make the principal payment, then the shortfall shall be paid to Manager in the next succeeding month or months as a Recoupment Payment under section 6.6 herein. Notwithstanding anything herein
to the contrary, in the event that the Parties are required to pay points or a loan origination fee as a condition for receipt of the Loan for the Project, the Parties agree to share the cost of the points or loan origination fee based on their
respective shares of Net Revenues under this Agreement. The Parties will contribute their share of the fee during the term of this Agreement. 
 6.6
Recoupment Payments. Next, until paid in full, the Manager shall be entitled to any Recoupment Payments that may be owed. No interest shall accrue or be paid on any Recoupment Payment. 
 6.7 Management Fee. Next, to pay the Manager a Management Fee in an amount equal to twenty-six percent (26%) of the Net Revenues; provided that if there are insufficient funds in any month to pay the Management
Fee in full, because the Tribe’s Share of Net Revenues is insufficient to pay the principal due under Section 6.5 (and therefore, the principal is paid from funds that would have otherwise paid the Management Fee), then the shortfall shall
be paid to the Manager in the next succeeding month or months as a Recoupment Payment. It is understood that the Manager will pay a royalty fee to Green Acres out of its Management Fee as provided in the Royalty Agreements. 
 6.8 Capital Reserve Fund. Next, to fund the Capital Reserve Fund in accordance with Section 4.13.6. In the event of a Total Condemnation, the Capital Reserve Fund
shall be distributed to the Tribe. 
 6.9 Tribal Disbursements. Any amount remaining shall be distributed to the Tribe. The Net Revenues paid to the Tribe
pursuant to this Section 6 shall be payable to a Tribal bank account specified by the Tribe. 
 6.10 Payment of Total Condemnation Proceeds. Finally, as
provided in section 4.3.2 herein, in the event that the Enterprise or the Property is condemned in total by a governmental agency with the lawful authority to carry out such an action, the proceeds from any such condemnation award shall be applied
(i) to retire any amounts due under the Loan Agreement, and, if any sums remain, (ii) to be paid to the Parties in accordance with the requirements of section 4.3.2 of this Agreement. The Parties shall retain all money previously paid
under Section 6 of this Agreement. 
 6.11 Repayment of Additional Principal. Subject to the requirements of sections 3.1.6 and 3.1.7.1, the maximum
amount of principal to be repaid by the Tribe herein during the term of this Agreement shall not exceed One Hundred and Forty-Two Million ($142,000,000). The Tribe, at its option, may prepay all or any part of the principal due Manager under this
Agreement and the Loan Documents without penalty. 
  

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 6.12 Operative Dates. For purposes of this Section 6, the first year of operations shall begin on the Commencement
Date and continue until the first day of the month following the first anniversary of the Commencement Date, and each subsequent year of operations shall be the 12-month period following the end of the previous year. Notwithstanding the foregoing,
except as provided in Section 4.5, the Term shall not extend beyond seven years (7) after the Commencement Date. Notwithstanding anything to the contrary, the fiscal year for the Enterprise shall coincide with the Tribe’s fiscal year.

 6.13 Tribal Operations Loan. Commencing January 1, 1999, through the date of execution of this Agreement, Manager has loaned the sum of Twenty
Thousand Dollars ($20,000) per month to the Tribe, to subsidize Tribal operations (the “Tribal Operations Loan”). As a result of delays in obtaining governmental approvals, occasioned by third-party legal challenges, and to meet growing
Tribal operational needs, Manager agrees to loan the Tribe the sum of Forty Thousand Dollars ($40,000) per month for the Tribal Operations Loan. Monthly payments to the Tribe as part of the Tribal Operations Loan shall end upon the Commencement
Date. The outstanding balance of Tribal Operations Loan shall not bear interest until the Effective Date; provided, however, that the Tribe agrees to pay an annual interest rate of nine and one-quarter percent (9.25%) on the second payment of
$20,000 per month from the date on which such additional Tribal Operations Loan is made to the Tribe through the Effective Date. Following the Effective Date, the outstanding balance of the total Tribal Operations Loan shall bear interest at the
interest rate set forth in Section 3.2 of the Loan Agreement, with the interest rate calculated as of the Effective Date. The Tribal Operations Loan shall be treated as a Pre-Financing Cost under this Agreement. Manager shall pay the Tribe the
revised Tribal Operations Loan amount upon the Parties’ signing of this Agreement, notwithstanding the requirement to obtain the signature of any other entity or official to this Agreement. 
 6.14 Year-end Adjustment. Within thirty (30) days after the receipt of the audit for each fiscal year of the Enterprise, Manager shall determine in consultation
with the Tribe the correct amount of the Management Fee for such fiscal year based on twenty-six percent (26%) of the Net Revenues for such year and either remit to the Tribe or deduct from the next distribution to the Tribe the amount of the
over or underpayment of the Management Fee. 
 7 Trade Names, Trade Marks and Service Marks. 
 7.1 Enterprise Name. The Enterprise shall be operated under such business name as the Tribe may select (the “Enterprise Name”). 
 7.2 Trade Names, Trade Marks and Service Marks. Prior to the Commencement Date, the Parties shall determine the other trade names, trade marks and service marks to be used by the Enterprise (the “Tribe’s
Marks”) and from time to time during the term hereof, Manager agrees to erect and install, in accordance with local codes and regulations, all signs Manager deems necessary in, on or about the Gaming Facility, including, but not limited to,
signs bearing the Tribe’s Marks. The costs of purchasing, leasing, transporting, constructing, maintaining and 

  

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installing the required signs and systems shall be an Operating Expense of the Enterprise and accounted for in accordance with GAAP. The Enterprise will be
primarily identified with the Tribe’s Marks. 
 7.3 Manager’s Marks. The Tribe agrees to recognize the exclusive right of ownership of Manager or
its parents to all of Manager’s service marks, trademarks, copyrights, trade names, patents or other similar rights or registrations now or hereafter held or applied for in connection therewith (collectively, the “Manager’s
Marks”). The Tribe hereby disclaims any right or interest therein, regardless of any legal protection afforded thereto. The Tribe acknowledges that all of Manager’s Marks might not be used in connection with the Enterprise, and Manager
shall have sole discretion to determine which of Manager’s Marks shall be so used. The Tribe covenants that in the event of termination, cancellation or expiration of this Agreement, whether as a result of a default by Manager or otherwise, the
Tribe shall not hold itself out as, or continue operation of the Enterprise as a Manager’s casino nor will it utilize any of Manager’s Marks or any variant thereof in the operation of the Gaming Facility. The Tribe agrees that Manager or
its parent or their respective representative may, at any time thereafter, enter the Gaming Facility and may remove all signs, furniture, printed material, emblems, slogans or other distinguishing characteristics which are now or hereafter may be
connected or identified with Manager or which carry any Manager’s Mark. The Tribe shall not use the Manager’s or its parent’s name, or any variation thereof, directly or indirectly, in connection with (a) a private placement or
public sale of security or other comparable means of financing or (b) press releases and other public communications, without the prior written approval of Manager or its parent. 
 7.4 Litigation Involving Manager’s Marks. The Enterprise and Manager hereby agree that in the event the Enterprise and/or Manager is (are) the subject of any litigation or action brought by anyone seeking to
restrain the use, for or with respect to the Enterprise or the Manager of any Manager’s Mark used by Manager for or in connection with the Enterprise, any such litigation or action shall be defended entirely at the expense of Manager,
notwithstanding that Manager may not be named as a party thereto. 
 8 Taxes. 
 8.1 State and Local Taxes. The Parties agree that the State of Michigan and its local governments have no authority to impose any possessory interest, property, or sales tax on any Party to this Agreement or upon the
Enterprise, and that the Parties and the Enterprise shall take all reasonable steps to resist such a tax. The reasonable costs of such action and the compensation of legal counsel shall be an Operating Expense of the Enterprise. Any tax paid and
determined lawful by a court of competent jurisdiction shall constitute an Operating Expense of the Enterprise. This Section shall in no manner be construed to imply that any Party to this Agreement or the Enterprise is liable for any such tax.

 8.2 Tribal Taxes. The Tribe agrees that neither it nor any agent, agency, affiliate or representative of the Tribe will impose any taxes, fees,
assessments, or other charges of any 

  

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nature whatsoever on payments of any debt service to Manager or to any lender furnishing financing for the Property, the Gaming Facility or for the
Enterprise, or on the Enterprise, the Gaming Facility, Furniture and Equipment, the revenues therefrom or on the Management Fee; provided, however, the Tribe may impose license fees reflecting reasonable out-of-pocket regulatory costs paid by the
Tribe. The Tribe further agrees that neither it nor any agent, agency, affiliate or representative will impose any taxes, fees, assessments or other charges of any nature whatsoever on the salaries or benefits, or dividends paid to, any of the
Manager’s stockholders, officers, directors, or employees. The Parties agree, however, that the Enterprise may be subject to a general Tribal tax on businesses operating on Tribal lands. If, contrary to this Section 8.2, any taxes, fees or
assessments are levied by the Tribe on Manager, Manager’s stockholders, officers, directors, or its employees, such taxes, fees and assessments shall be paid solely from the Tribe’s Share of Net Revenues. 
 9 General Provisions. 
 9.1 Governing Law. This Agreement shall be
interpreted in accordance with the laws of the State of Delaware, it being understood by the Parties that this clause in no way constitutes any submission by the Tribe to the jurisdiction of the State of Delaware; and the Parties further expressly
recognize and agree that, except as provided in Section 3.4, this Agreement shall be subject to all Legal Requirements as well as approval by the Chairman of the NIGC where required by IGRA. The arbitration provisions of this Agreement shall be
governed by the Federal Arbitration Act, 9 U.S.C. § 1, et seq. 
 9.2 Notice. Any notice required to be given pursuant to this Agreement shall be
delivered to the appropriate Party by Certified Mail Return Receipt requested, addressed as follows: 
  

			
	 If to the Tribe:
	  	 Nottawaseppi Huron Band of Potawatomi
 Tribal
Council
 2221 1-l/2 Mile Road
 Fulton, Michigan 49052

Attn: Tribal Chairperson

		
	 If to Manager:
	  	 Gaming Entertainment (Michigan) LLC
 c/o Full House
Resorts, Inc.
 4670 South Fort Apache Road
 Suite 190

Las Vegas, Nevada 89147

		
	 With a copy to:
	  	 Green Acres Casino Management Company, Inc.
 30340
Covey Road
 Leonidas, Michigan 49066

  

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 or to such other different addresses as the Manager or the Tribe may specify in writing using the notice procedure called
for in this Section 9.2. Any such notice shall be deemed given three days following deposit in the United States mail or upon actual delivery, whichever first occurs. 
 9.3 Authority to Execute and Perform Agreement. The Tribe and Manager represent and warrant to each other that they each have full power and authority to execute this Agreement and to be bound by and perform the terms
hereof. On request, each Party shall furnish the other evidence of such authority. 
 9.4 Relationship. Manager and the Tribe shall not be construed as joint
venturers or partners of each other by reason of this Agreement and neither shall have the power to bind or obligate the other except as set forth in this Agreement. 
 9.5 Further Actions. The Tribe and Manager agree to execute all contracts, agreements and documents and to take all actions necessary to comply with the provisions of this Agreement and the intent hereof. 

9.6 Defenses. Except for disputes between the Tribe and Manager, the Tribe and Manager shall agree upon the bringing and/or defending and/or settling any claim or
legal action brought against the Enterprise, the Manager or the Tribe, individually, jointly or severally in connection with the operation of the Enterprise, including the retention and supervision of legal counsel, accountants and other such
professionals. Except as provided in section 7.4 herein, all liabilities, costs, and expenses, including attorneys’ fees and disbursements, incurred in defending and/or settling any such claim or legal action which are not covered by insurance
shall be an Operating Expense. 
 9.7 Waivers. No failure or delay by Manager or the Tribe to insist upon the strict performance of any covenant, agreement,
term or condition of this Agreement, or to exercise any right or remedy consequent upon the breach thereof, shall constitute a waiver of any such breach or any subsequent breach of such covenant, agreement, term or condition. No covenant, agreement,
term or condition of this Agreement and no breach thereof shall be waived, altered or modified except by written instrument. No waiver of any breach shall affect or alter this Agreement, but each and every covenant, agreement, term and condition of
this Agreement shall continue in full force and effect with respect to any other existing or subsequent breach thereof. 
 9.8 Captions. The captions for
each Article and Section are intended for convenience only. 
 9.9 Interest. Any amount payable to Manager or the Tribe, by the other, which has not been
paid when due, except advances by Manager to make the Minimum Guaranteed Monthly Payment or other Recoupment Payment because of insufficient Net Revenues, shall accrue interest at the same rate as calculated under this Section. Unless otherwise
agreed by the Parties, such rate shall be a fluctuating rate equivalent to one percent (1%) over the prime interest rate as published in the Wall Street Journal, adjusted monthly, with the monthly rate established according to the rate
published on the third Tuesday of the preceding calendar month. 
  

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 9.10 Third Party Beneficiary. This Agreement is exclusively for the benefit of the Parties hereto and it may not be
enforced by any party other than the Parties to this Agreement and shall not give rise to liability to any third party other than the authorized successors and assigns of the Parties hereto. 
 9.11 Brokerage. Manager and the Tribe represent and warrant to each other that neither has sought the services of a broker, finder or agent in this transaction, and
neither has employed, nor authorized, any other person to act in such capacity. Manager and the Tribe each hereby agrees to indemnify and hold the other harmless from and against any and all claims, loss, liability, damage or expenses (including
reasonable attorneys’ fees) suffered or incurred by the other Party as a result of a claim brought by a person or entity engaged or claiming to be engaged as a finder, broker or agent by the indemnifying Party. 
 9.12 Survival of Covenants. Any covenant, term or provision of this Agreement which, in order to be effective, must survive the termination of this Agreement, shall
survive any such termination. 
 9.13 Estoppel Certificate. Manager and the Tribe agree to furnish to the other Party, from time to time upon request, an
estoppel certificate in such reasonable form as the requesting Party may request stating whether there have been any defaults under this Agreement known to the Party furnishing the estoppel certificate and such other information relating to the
Enterprise as may be reasonably requested. 
 9.14 Periods of Time. Whenever any determination is to be made or action to be taken on a date specified in
this Agreement, if such date shall fall on a Saturday, Sunday or legal holiday under the applicable laws, then in such event said date shall be extended to the next day which is not a Saturday, Sunday or legal holiday. 
 9.15 Preparation of Agreement. This Agreement shall not be construed more strongly against either Party regardless of who is responsible for its preparation. 

9.16 Successors, Assigns and Subcontracting. The benefits and obligations of this Agreement shall inure to and be binding upon the Parties hereto and their respective
successors and assigns. The Tribe’s consent shall not be required for Manager to assign or subcontract any of its rights interests or obligations as Manager hereunder to any parent, subsidiary or affiliate of Manager, or its successor
corporation, provided that any such assignee or subcontractor agrees to be bound by the terms and conditions of this Agreement and provided they are licensed by the NIGC and the Gaming Commission. The Manager may collaterally assign its interest in
the Net Revenues to a Financial Institution in connection with the Loan. The acquisition of Manager or its parent company by a party other than the parent, subsidiary, or affiliate of Manager, or its successor corporation, shall not constitute an
assignment of this Agreement by Manager and this Agreement shall remain in full force and effect between the Tribe and Manager, subject only to NIGC completion of its background investigation and licensure by the NIGC of the purchaser and licensure
by the Gaming Commission. Other than as stated above, this Agreement may not 

  

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be assigned or subcontracted by the Manager, without the approval by the Tribe, and the Chairman of the NIGC or his authorized representative after a
complete background investigation of the proposed assignee. The Tribe shall, without the consent of the Manager but subject to approval by the Chairman of the NIGC or his authorized representative, have the right to assign this Agreement and the
assets of the Enterprise to an instrumentality of the Tribe or to a corporation wholly owned by the Tribe organized to conduct the business of the Enterprise for the Tribe that assumes all obligations herein. Any assignment by either Party shall not
prejudice the rights of the other Party under this Agreement. No assignment authorized hereunder shall be effective until all necessary government approvals have been obtained. 
 9.17 Time is of the Essence. Time is of the essence in the performance of this Agreement. 
 9.18 Confidential and
Proprietary Information. 
 9.18.1 Confidential Information. Both Parties agree that any information received concerning the other Party during the
performance of this Agreement, regarding the Parties’ organization, financial matters, marketing plans, or other information of a proprietary nature, will be treated by both Parties in full confidence and except as required to allow Manager and
the Tribe to perform their respective covenants and obligations hereunder, will not be revealed to any other persons, firms or organizations except in the course of legal proceedings including arbitration as permitted by the court, arbitrator or
arbitration panel. This provision shall survive the termination of this Agreement for a period of two (2) years. 
 9.18.2 Proprietary Information of
Manager. The Tribe agrees that Manager has the sole and exclusive right, title and ownership to (i) certain proprietary information, techniques and methods of operating gaming businesses; (ii) certain proprietary information, techniques
and methods of designing games used in gaming businesses; (iii) certain proprietary information, techniques and methods of training employees in the gaming business; and (iv) certain proprietary business plans, projections and marketing,
advertising and promotion plans, strategies, and systems, all of which have been developed and/or acquired over many years through the expenditure of time, money and effort and which Manager and its affiliates maintain as confidential and as a trade
secret(s) (collectively, the “Confidential and Proprietary Information”). 
 9.18.3 Manager agrees that, as part of its duties under this
Agreement, Manager shall train Enterprise Employees in management and operation practices required for the successful operation of the Enterprise following the expiration of the Term. In return, the Tribe agrees, upon the termination of this
Agreement, to maintain the confidentiality of such Confidential and Proprietary Information, including but not limited to, documents, notes, memoranda, lists, computer programs and any summaries of such Confidential and Proprietary Information for
the period required in Section 9.18.1 above and is hereby authorized by Manager to use such Confidential and Proprietary Information exclusively for Gaming operations conducted by the Tribe beyond the Term of this Agreement. 
  

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 9.19 Employment Solicitation Restriction Upon Termination. The Tribe and the Tribal Council hereby agree not to solicit
the employment of Manager’s employees, other than members of the Tribe, their spouses and children, at any time during the Term of this Agreement without Manager’s prior written approval. Furthermore, the Tribe and the Tribal Council agree
not to employ such personnel, other than members of the Tribe, their spouses and children, for a period of twelve (12) months after the termination or expiration of this Agreement, without Manager’s prior written approval. 
 9.20 Patron Dispute Resolution. Manager shall submit all patron disputes concerning play to the Tribal Gaming Commission pursuant to the Tribal Gaming Ordinance, and the
regulations promulgated thereunder. 
 9.21 Claims Involving Authority, Etc. Manager and the Tribe each hereby agrees to indemnify and hold the other
harmless from and against any and all claims, loss, liability, damage or expenses (including reasonable attorneys’ fees) suffered or incurred by the other Party as a result of a claim brought by a person or entity claiming that the indemnifying
Party has no authority, power or right to enter into this Agreement. 
 9.22 Claims brought by Green Acres Casino Management Company, Inc. The Manager hereby
agrees to indemnify and hold harmless the Tribe and/or the Enterprise from and against any and all claims, loss, liability damages or expenses (including reasonable attorneys’ fees) suffered or incurred by any action brought by Green Acres,
Basil Green, Dorothy Green or any other shareholder, director or officer of Green Acres arising from the termination of the Original Agreements. 
 9.23
Release by Manager, etc. The Manager, FHRI and Green Acres each hereby releases the Tribe from any obligations, claims, expenses, costs and damages that the Manager, FHRI and/or Green Acres may have arising under the Original Agreements and/or the
Royalty Agreements. 
 9.24 Release by Tribe, etc. The Tribe releases the Manager, FHRI and Green Acres from any obligations, claims, expenses, costs and
damages that the Tribe may have arising under the Original Agreements or the Royalty Agreements. 
 9.25 Modification. Any change to or modification of this
Agreement must be in writing signed by both Parties hereto and shall be effective only upon approval by the Chairman of the NIGC, the date of signature of the Parties notwithstanding. 
 10 Warranties. 
 10.1 Warranties. The Manager and the Tribe each warrant and represent that they shall not act in any way
whatsoever, directly or indirectly, to cause this Agreement to be amended, modified, canceled or terminated, except pursuant to Section 11. The Manager and the Tribe warrant and represent that they shall take all actions necessary to ensure
that this Agreement shall remain in full force and effect at all times. The parties acknowledge the existence of various litigation 

  

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challenging the validity of the Tribe’s compact with the State of Michigan (Taxpayers of Michigan Against Casinos v. State, 254 Mich.App. 23, 657
N.W.2d 503 (Mich.App. Nov. 12, 2002)(NO. 225017, 225066) Appeal Granted by Taxpayers of Michigan Against Casinos v. State, 469 Mich. 902, 669 N.W.2d 816 (Mich. Sep. 25, 2003 (TABLE, NO. 122830) and aff’d in part, Reserved in part and
Remanded by 471 Mich. 306, 685 N.W.2d 221 (Mich. July 30, 2004) (NO. 122830), cert. denied by Taxpayers of Michigan Against Casinos v. Michigan, 543 U.S. 1146, 125 S.Ct. 1298 (2005) and on Remand to Taxpayers of Michigan
Against Casinos v. State, 268 Mich.App. 226, 708 N.W.2d 115 (Mich.App. Sep. 27, 2005)(NO. 225017) Appeal Granted by Taxpayers of Michigan Against Casinos v. State, 474 Mich. 1097, 711 N.W.2d 76 (Mich. Mar. 29, 2006)(NO. 129816) and
Appeal Granted by Taxpayers of Michigan Against Casinos v. State, 711 N.W.2d 79 (Mich. Mar. 29, 2006)(NO. 129822) and Appeal Granted by Taxpayers of Michigan Against Casinos v. State, 711 N.W.2d 80 (Mich. Mar. 29, 2006)(NO. 129818);
together with Laura Baird v. Babbitt, C.A. No. 5:99-CV-14 (United States District Court, Western District, Michigan)(1999), aff’d, 266 F.3d 408 (6th Cir. 2001); and the suit challenging the Interior Department’s decision to accept the Property in trust, CETAC v. Norton, C.A. No. 1:02CV01754-TPJ (D.D.C. Apr. 23, 2004), and any
certificate or other representation provided Manager by the Tribe is hereby conditioned upon the existence of any such litigation. 
 10.2 Interference in
Tribal Affairs. The Manager agrees not to interfere in or attempt to influence the internal affairs or governmental decisions of the Tribal government by offering cash or employment incentives, by making written or oral threats to the personal or
financial status of any person, or by any other action, except for actions in the normal course of business of the Manager that only affect the activities of the Enterprise. For the purposes of this Section 10.2, if after providing Manager with
written notice and a hearing, the Tribe reasonably finds that the Manager has unduly interfered with the internal affairs of the Tribal government and has not taken sufficient action to cure and prevent such interference, that finding of
interference shall be grounds for termination of the Agreement by the Tribe. 
 10.3 Prohibition of Payments to Members of Tribal Government. Manager
represents and warrants that no payments have been or will be made to any member of the Tribal government, any Tribal official, any relative of a member of Tribal government or Tribal official, or any Tribal government employee for the purpose of
obtaining any special privilege, gain, advantage or consideration. 
 10.4 Definitions. As used in this Section 10, the term “member of the Tribal
government” means any member of the Tribal Council, the Gaming Commission or any independent board or body created to oversee any aspect of Gaming and any Tribal court official; the term “relative” means an individual residing in the
same household who is related as a spouse, father, mother, son or daughter, aunt, uncle, nephew or niece. 
 11 Grounds for Termination. 
 11.1 Voluntary Termination. This Agreement may be terminated upon the mutual written consent and approval of the Parties. 
  

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 11.2 Termination for Cause. 
 11.2.1 Either Party may terminate this Agreement if the other Party commits or allows to be committed any material breach of this Agreement. A material breach of this Agreement means a failure of either Party to perform any material duty or
obligation on its part for ten (10) consecutive days after receiving written notice of breach from the other Party, or a finding by the Tribe that Manager has violated section 10.2 of this Agreement. Neither Party may terminate this Agreement
on grounds of material breach unless it has provided written notice to the other Party of its intention to terminate this Agreement and within ten (10) days following receipt of such notice the defaulting Party fails (a) to cure the
default or (b) to commence curing the default and thereafter diligently to proceed to cure the default. Discontinuance or correction of a material breach shall constitute a cure thereof. 
 11.2.2 The Tribe may also terminate this Agreement where the Manager has had its license withdrawn because the Manager, or a director or officer of the Manager, has been
convicted of a criminal felony or misdemeanor offense directly related to the performance of the Manager’s duties hereunder; provided, however the Tribe may not terminate this Agreement based on a director or officer’s conviction where the
Manager terminates such individual immediately after receiving notice of the conviction. Any such director or officer charged with a criminal felony or misdemeanor offense directly related to the performance of Manager’s duties shall have no
role in the management of the Enterprise until such time as such person is cleared of the charge or charges. 
 11.2.3 An election to pursue damages or to
pursue specific performance of this Agreement or other equitable remedies while this Agreement remains in effect shall not preclude the injured Party from providing notice of termination pursuant to this Section 11.2. 
 11.3 Involuntary Termination Due to Changes in Legal Requirements. It is the understanding and intention of the Parties that the establishment and operation of the
Enterprise conforms to and complies with all Legal Requirements. If during the term of this Agreement, a final judgment of a court of competent jurisdiction determines Gaming at the Enterprise is unlawful, and all appeals from such judgment have
been exhausted, the obligations of the Parties hereto shall cease and this Agreement shall be of no further force and effect except as to (a) accrued liabilities to third parties, (b) to the provisions of Section 12.1 and
Section 17 and (c) Manager’s rights under the Loan Documents; provided that (i) the Manager and the Tribe shall retain all money previously paid to them pursuant to Section 6 of this Agreement; (ii) funds of the
Enterprise in any account shall be paid and distributed as provided in Section 6 of this Agreement; (iii) any money loaned by or guaranteed by the Manager or its affiliates to the Tribe shall be repaid to the Manager from the Collateral;
and (iv) the Tribe shall retain its interest in the title (and any lease) to all Enterprise fixtures, supplies and equipment, subject to any requirements of financing arrangements. 
  

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 11.4 Consequences of Manager’s Breach. In the event of the termination of this Agreement by the Tribe for cause
under Section 11.2, the Manager shall not, prospectively from the date of termination, have the right to its Management Fee from the Enterprise, but such termination shall not affect the Manager’s rights under Section 12, the Loan
Documents or any other agreements entered pursuant hereto. 
 11.5 Consequences of Tribe’s Breach. In the event of termination of this Agreement by the
Manager for cause under Section 11.2, the Manager shall not be required to perform any further services under this Agreement and the Tribe shall indemnify and hold the Manager harmless against all liabilities of any nature whatsoever relating
to the Enterprise arising after the date of termination, but only insofar as these liabilities result from acts within the control of the Tribe or its agents. 
 11.6 Notice Provision. Except where the Tribal Gaming Ordinance, the Compact, or any other applicable law or regulation provide for immediate action or action in less than 30 days time, the Tribe or the Gaming Commission shall provide the
Manager notice of any alleged violation of the Tribal Gaming Ordinance and thirty (30) days opportunity to cure before the Gaming Commission may take any action based on such alleged violation. 
 12 Conclusion of the Management Term. Upon the conclusion of the Term, or the termination of this Agreement under other of its provisions, in addition to other rights
under this Agreement, the Manager shall have the following rights: 
 12.1 Undistributed Net Revenues. If the Enterprise has Net Revenues (irrespective of
whether such Net Revenues are known or unknown upon the expiration of the Term or the sooner termination of this Agreement) which have not been distributed under Section 6 of this Agreement, the Manager shall receive, at such time as such Net
Revenues are determined, that portion of such Net Revenues that it would have received had such Net Revenues been distributed during the Term. 
 13 Consents
and Approvals. 
 13.1 Tribe. Where approval or consent or other action of the Tribe is required, such approval shall mean the written approval of the Tribal
Council evidenced by a resolution thereof, certified by a tribal official as having been duly adopted, or, if provided by resolution of the Tribal Council, the approval of the Tribal Gaming Commission, or such other person or entity designated by
resolution of the Tribal Council. Any such approval, consent or action shall not be unreasonably withheld or delayed; provided the foregoing does not apply where a specific provision of this Agreement allows the Tribe an absolute right to deny
approval or consent or withhold action. 
 13.2 Manager. Where approval or consent or other action of the Manager is required, such approval shall mean
written approval. Any such approval, consent or other action shall not be unreasonably withheld or delayed. 
  

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 14 Disclosures. 
 14.1
Shareholders and Directors. Manager shall provide to the Tribe and the NIGC on the date that this Agreement is submitted to the NIGC a list of all persons and entities identified in 25 C.F.R. 537.1(a) and 537.1(c)(1) and the information required
under 25 C.F.R. 537.1(b). 
 14.2 Warranties. The Manager further warrants and represents as follows: (i) no person or entity has any beneficial
ownership interest in the Manager other than as shall be identified pursuant to Section 14. 1; (ii) no officer, director or owner of five percent (5%) or more of the stock of the Manager has been arrested, indicted for, convicted of,
or pleaded nolo contendre to any felony or any gaming offense, or had any association with individuals or entities known to be connected with organized crime; and (iii) no person or entity disclosed pursuant to Section 14.1 of this
Agreement, including any officers and directors of the Manager, has been arrested, indicted for, convicted of, or pleaded nolo contendre to any felony or any gaming offense, or had any association with individuals or entities known to be connected
with organized crime. 
 14.3 Criminal and Credit Investigation. The Manager agrees that all of its members and its members’ shareholders (owning more
than five percent (5%) of the outstanding stock), directors and officers (whether or not involved in the Enterprise), shall: 
 (a)
consent to background investigations to be conducted by the Tribe, the State of Michigan, the Federal Bureau of Investigation (the “FBI”) or any other law enforcement authority to the extent required by the IGRA or any Compact. 

(b) be subject to licensing requirements in accordance with Tribal law and this Agreement, 
 (c) consent to a background, criminal and credit investigation to be conducted by or for the NIGC, if required, 
 (d) consent to a financial and credit investigation to be conducted by a credit reporting or investigation agency at the request of the Tribe,

 (e) cooperate fully with such investigations, and 
 (f) disclose any information requested by the Tribe which would facilitate the background and financial investigation. 
 Any
materially false or deceptive disclosures or failure to cooperate fully with such investigations by an employee of the Manager or an Enterprise Employee shall result in the immediate dismissal of such employee. The results of any such investigation
may be disclosed by the Tribe to federal officials as required by law. 
 14.4 Disclosure Amendments. The Manager agrees that whenever there is any proposed
change with respect to the persons or entities with a financial interest in, or management 

  

 Huron Band-GEM Management Agreement 
 June 12, 2006 
 Page 36 

 
responsibility for, this Agreement, it shall notify the NIGC and the Tribe of such change no later than ten days after it becomes aware of such change as
required by 25 C.F.R. § 537.2. The Manager further agrees to notify the NIGC and the Tribe of any change with respect to the warranties and representations contained on Section 14.2(ii) or (iii) of this Agreement no later than ten
days after it becomes aware of such change. All of the warranties and agreements contained in this Section 14 shall apply to any person or entity who would be disclosed pursuant to this Section 14 as a result of such changes. 

14.5 Breach of Manager Warranties and Agreements. The material breach of any warranty or agreement of the Manager contained in this Section 14 shall be grounds
for immediate termination of this Agreement; provided that (a) if a breach of the warranty contained in clause (ii) of Section 14.2 is discovered, and such breach was not disclosed by any background check conducted by the FBI as part
of the NIGC or other federal approval of this Agreement, or was discovered by the FBI investigation but all officers and directors of the Manager sign sworn affidavits that they had no knowledge of such breach, then the Manager shall have thirty
(30) days after notice from the Tribe to terminate the interest of the offending person or entity and, if such termination takes place, this Agreement shall remain in full force and effect; and (b) if a breach relates to a failure to
update changes in financial position or additional gaming related activities, then the Manager shall have thirty (30) days after notice from the Tribe to cure such default prior to termination. 
 15 Recordation. If applicable, at the option of Manager or the Tribe, any security agreement related to the Loan Agreement may be recorded in any public records. Where
such recordation is desired in any relevant recording office maintained by the Tribe, and/or in the public records of the BIA, the Tribe will accomplish such recordation upon the request of the Manager. Manager shall promptly reimburse the Tribe for
all expense, including attorney fees, incurred as a result of such request. No such recordation shall waive the Tribe’s sovereign immunity. 
 16 No
Present Lien, Lease or Joint Venture. The Parties agree and expressly warrant that neither this Agreement nor any exhibit thereto is a mortgage or lease and, consequently, does not convey any such present interest whatsoever in the Gaming Facility
or the Property, nor any proprietary interest in the Enterprise to Manager. The Parties further agree and acknowledge that it is not their intent, and that this Agreement shall not be construed, to create a joint venture between the Tribe and the
Manager; rather, the Manager shall be deemed to be an independent contractor for all purposes hereunder. 
 17 Arbitration. Either Party may submit any
dispute arising under the terms of this Agreement, the Loan Documents and any other document executed in conjunction with this Agreement to arbitration under this Section 17, including without limitation a claim that a Party has breached this
Agreement and the Agreement should be terminated. Notwithstanding the foregoing sentence, the following tribal actions shall not be subject to arbitration: (i) approval of budgets; (ii) licensing decisions; (iii) governmental actions
of the Tribal Council (except such actions which are intended to abrogate provisions of this Agreement); and (iv) Gaming 

  

 Huron Band-GEM Management Agreement 
 June 12, 2006 
 Page 37 

 
Commission actions taken in the course of carrying out regulatory duties and responsibilities assigned to the Gaming Commission pursuant to tribal law.
Arbitration shall be the exclusive means of dispute resolution between the Parties and shall take place under the procedure set forth in this Section 17. The arbitrators shall have the right to grant injunctive relief and specific performance.

 17.1 Unless the Parties agree upon the appointment of a single arbitrator, a panel of arbitrators consisting of three (3) members shall be appointed.
One (1) member shall be appointed by the Tribe and one (1) member shall be appointed by the Manager within ten (10) working days’ time following the giving of notice submitting a dispute to arbitration. The third member shall be
selected by agreement of the other two (2) members. In the event the two (2) members cannot agree upon the third arbitrator within fifteen (15) working days’ time, then the third arbitrator shall be chosen by the Chief Judge of
the United States District Court for the Western District of Michigan. If for any reason the Chief Judge refuses to choose the third arbitrator, the Dean of the Law School at the University of Michigan shall make the selection. 
 17.2 Expenses of arbitration shall be shared equally by the Parties unless the arbitrator or arbitration panel determines that the expenses should be paid by the non
prevailing Party under standards similar to those in Rule 11 of the Federal Rules of Civil Procedure. Meetings of the arbitrators may be in person or, in appropriate circumstances, by telephone. All decisions of any arbitration panel shall be by
majority vote of the panel, shall be in writing, and, together with any dissenting opinions, shall be delivered to both Parties. 
 17.3 The arbitrator or
arbitration panel shall have power to administer oaths to witnesses, to take evidence under oath, and, by majority vote, to issue subpoenas to compel the attendance of members of the Tribe, Enterprise Employees or employees, officers and directors
of the Manager for the production of books, records, documents and other relevant evidence by either Party. The Tribe and the Manager agree to comply with such subpoenas. 
 17.4 The arbitrator or arbitration panel shall hold hearings in the proceeding before it and shall give reasonable advance notice to the Tribe and the Manager by registered mail not less than five (5) days before
any hearing. Unless otherwise agreed by the Tribe and the Manager, all hearings shall be held at the Tribal Offices on the Huron Band of Potawatomi Reservation. Appearance at a hearing waives such notice. The arbitrator or arbitration panel may hear
and determine the controversy only upon evidence produced before it and may determine the controversy notwithstanding the failure of either the Tribe or the Manager duly notified to appear. The Tribe and the Manager are each entitled to be heard at
all hearings, to present evidence material to the matter subject to arbitration, to cross-examine witnesses appearing at the hearing, and to be represented by counsel at its own expense. 
 17.5 If the matter being submitted to arbitration involves a notice to terminate the Agreement for material breach, the Party seeking termination may apply to the arbitrator or arbitration panel for an order
suspending performance of the Agreement during the pendency of arbitration, and the arbitrator or arbitration panel shall promptly hear and decide that application. 
  

 Huron Band-GEM Management Agreement 
 June 12, 2006 
 Page 38 

 17.6 The decision of the arbitrator or arbitration panel shall be presumed to be valid, shall be enforceable in full in
any court of competent jurisdiction and may be vacated or modified only by the United States District Court for the Western District of Michigan on one of the following grounds; (a) the decision is not supported by substantial evidence;
(b) the decision was procured by corruption, fraud or undue means; (c) there was evident partiality or corruption by the arbitrator, arbitration panel or any member; (d) the arbitrator, arbitration panel or any member was guilty of
misconduct in refusing to hear the question, or in refusing to hear evidence pertinent and material to the question, or any other clear misbehavior by which the rights of either Party have been substantially prejudiced; (e) the arbitrator or
arbitration panel or any member exceeded its authority under the terms of this Agreement; or (f) the arbitrator or arbitration panel’s decision is contrary to law. 
 17.7 The Tribe waives its sovereign immunity only to the extent of allowing arbitration and judicial review and enforcement under the procedures set forth in this Section 17. This Agreement does not constitute
and shall not be construed as a waiver of sovereign immunity by the Tribe except to permit arbitration and judicial review and enforcement under the procedures set forth in this Section 17. 
 17.8 Notwithstanding this or any other provision, the arbitrator(s) may make an award of only damages or interpretation of this Management Agreement and related
agreements and the only tribal income, assets and property which shall be subject to any claim or award under this Agreement are (a) any undistributed or future income, revenues or proceeds from the Enterprise and/or the Gaming Facility,
including without limitation such revenues arising or generated from the Enterprise and/or the Gaming Facility after the termination of this Agreement, and (b) Gaming and related revenues from the Gaming Facility arising or generated after the
date that the matter in dispute is referred to arbitration. 
 17.9 In no event shall this Section 17 Arbitration apply to any governmental function,
action or decision of the Tribe or any of its boards, agencies or commissions. 
 17.10 This Section 17 shall survive the termination of this Agreement.

 18 Entire Agreement. This Agreement constitutes the entire understanding and agreement of the Parties hereto with respect to the subject matter hereof and
supersedes all other prior agreements and understandings, written or oral, between the Parties. 
 19 Government Savings Clause. Each of the Parties agrees
to execute, deliver and, if necessary, record any and all additional instruments, certifications, amendments, modifications and other documents as may be required by the United States Department of the Interior, BIA, the NIGC, the Office of the
Field Solicitor, or any applicable statute, rule or regulation in order to effectuate, complete, perfect, continue or preserve the respective rights, obligations, liens and interests of the parties hereto to the fullest extent permitted by law;
provided, that any such 

  

 Huron Band-GEM Management Agreement 
 June 12, 2006 
 Page 39 

 
additional instrument, certification, amendment, modification or other document shall not materially change the respective rights, remedies or obligations of
the Tribe or the Manager under this Agreement or any other agreement or document related hereto. 
 20. Execution. This Agreement is being executed in four
counterparts, two to be retained by each Party. Each of the four originals is equally valid. This Agreement shall be binding upon both Parties when properly executed and approved by the Chairman of the NIGC. 
 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the day and year first above written. 
  

			
	NOTTAWASEPPI HURON BAND OF POTAWATOMI INDIANS
		
	By:	 	
		 	
	
	/s/ Laura W. Spurr
	 Name:
	 	 Laura W. Spurr

	 Title:
	 	 Chairwoman

	 Dated:
	 	 June 12, 2006

	
	 GAMING ENTERTAINMENT (MICHIGAN) LLC

		 	
	 By:
	 	 FULL HOUSE RESORTS, INC., member

		 	
	
	/s/ Barth F. Aaron
	 Name:
	 	 Barth F. Aaron

	 Title:
	 	 Secretary

	 Dated:
	 	 June 12, 2006

	
	NATIONAL INDIAN GAMING COMMISSION
		
	By:	 	
	
	  
	Name:	 	 Philip N. Hogen

	Title:	 	 Chairman

	Dated:	 	

  

 Huron Band-GEM Management Agreement 
 June 12, 2006 
 Page 40 

 Full House Resorts, Inc. joins in this agreement solely for the purpose of consenting to the provisions of
Section 9.23 in consideration of the release granted by the Tribe under Section 9.24. 
  

					
	FULL HOUSE RESORTS, INC.
		
	By:	 	 /s/ Barth F. Aaron

		 	 Name:
	 	 Barth F. Aaron

		 	 Title:
	 	 Secretary

		 	 Dated:
	 	 June 12, 2006

  

 Huron Band-GEM Management Agreement 
 June 12, 2006 
 Page 41 

 Green Acres Casino Management Company, Inc. joins in this agreement solely for the purpose of consenting to the
provisions of Section 9.23 in consideration of the release granted by the Tribe under Section 9.24. 
  

					
	GREEN ACRES CASINO MANAGEMENT COMPANY, INC.
		
	By:	 	  
		 	 Name:
	 	  
		 	 Title:
	 	  
		 	 Dated:
	 	  

  

 Huron Band-GEM Management Agreement 
 June 12, 2006 
 Page 422005 Stock Plan

 Exhibit 10.51 
 SALIX PHARMACEUTICALS, LTD. 
 2005 STOCK PLAN 
 (as amended June 15, 2006) 
 1. Purposes of the Plan. The purposes of this
Plan are to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to the Employees and Consultants of the Company and to promote the success of the Company’s business.
Pursuant to the terms of this Plan, the Company may grant incentives (a) to its Employees in the form of Incentive Stock Options; (b) to its Employees and Consultants in the form of Nonstatutory Stock Options; (c) to its Employees and
Consultants in the form of Stock Bonuses; and (d) to its Employees and Consultants in the form of Purchase Rights. 
 2.
Definitions. As used herein, the following definitions shall apply: 
 (a) “Administrator” shall mean the Board
or any of its Committees appointed pursuant to Section 4 of the Plan. 
 (b) “Applicable Laws” means the
requirements relating to the administration of stock option plans under the corporate laws and securities regulations of applicable U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system
on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Options are, or will be, granted under the Plan. 
 (c) “Board” shall mean the Board of Directors of the Company. 
 (d)
“Change in Control” shall mean a change in control of a nature that would be required to be reported in response to item 6(e) of Schedule 14A of Regulation 14A promulgated under the Exchange Act as such Schedule, Regulation
and Act were in effect on the date of adoption of this Plan by the Board, assuming that such Schedule, Regulation and Act applied to the Company, provided that such a change in control shall be deemed to have occurred at such time as: 
 (i) any “person” (as that term is used in Section 13(d) and 14(d)(2) of the Exchange Act) (other than the Company, a Subsidiary or an
affiliate of the Company) becomes, directly or indirectly, the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of securities representing a 33-1/3% or more of the combined voting power for election of members of the
Board of the then outstanding voting securities of the Company or any successor of the Company; 
 (ii) during any period of two consecutive
years or less, individuals who at the beginning of such period constituted the Board of the Company cease, for any reason, to constitute at least a majority of the Board, unless the election of nomination for election of each new member of the Board
was approved by a vote of at least two-thirds of the members of the Board then still in office who were members of the Board at the beginning of the period; 

 (iii) the equity holders of the Company approve any merger or consolidation to which the Company is a
party as a result of which the persons who were equity holders of the Company immediately prior to the effective date of the merger or consolidation (and excluding, however, any shares held by any party to such merger or consolidation and their
affiliates) shall have beneficial ownership of less than 50% of the combined voting power for election of members of the Board (or equivalent) of the surviving entity following the effective date of such merger or consolidation; or 
 (iv) the equity holders of the Company approve any merger or consolidation as a result of which the equity interests in the Company shall be changed,
converted or exchanged (other than a merger with a wholly-owned Subsidiary of the Company) or any liquidation of the Company or any sale or other disposition of all or substantially all of the assets of the Company. 
 However, in no event shall a Change in Control be deemed to have occurred with respect to a holder of a Stock Right, if such holder is part of a
purchasing group which consummates the Change in Control transaction. Such holder shall be deemed “part of a purchasing group” for purposes of the preceding sentence if he, she or it is either directly or indirectly an equity participant
in the purchasing group (except for (A) passive ownership of less than 3% of the stock of the purchasing group, or (B) ownership of equity participation in the purchasing group which is otherwise not significant, as determined prior to the
Change in Control by the Board). 
 (e) “Code” shall mean the Internal Revenue Code of 1986, as amended, or any
successor thereto. 
 (f) “Committee” shall mean any Committee appointed by the Board in accordance with
Section 4(a) of the Plan, if one is appointed. Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board. From time to time, the Board may increase the size of the Committee and
appoint additional members thereof, remove members (with or without cause) and appoint new members in substitution therefor, fill vacancies, however caused, and remove all members of the Committee and thereafter directly administer the Plan, all to
the extent permitted by the Applicable Laws. 
 (g) “Common Stock” shall mean the Common Stock, par value $0.001 per
share, of the Company. 
 (h) “Company” shall mean Salix Pharmaceuticals, Ltd., a Delaware corporation. 

(i) “Consultant” shall mean any person, including an advisor, engaged by the Company or any Parent or Subsidiary to render
services to such entity, and any Director of the Company whether compensated for such services or not. 
 (j) “Continuous Status
as an Employee or Consultant” shall mean the absence of any interruption or termination of service as an Employee or Consultant. Continuous Status as an Employee or Consultant shall not be considered interrupted in the case of sick
leave, military 

 
leave, or any other leave of absence approved by the Administrator; provided that such leave is for a period of not more than 90 days or reemployment upon
the expiration of such leave is guaranteed by contract or statute. For purposes of this Plan, a change in status from Employee to Consultant or from Consultant to Employee will not constitute a termination of employment. 
 (k) “Director” shall mean a member of the Board. 
 (l) “Disqualifying Disposition” shall mean any disposition (including any sale) of Common Stock before either (i) two years after the date the Employee was granted the Incentive Stock
Option, or (ii) one year after the date the Employee acquired the Common Stock by exercising the Incentive Stock Option. If an Employee has died before such stock is sold, these holding period requirements do not apply and no Disqualifying
Disposition can occur thereafter. 
 (m) “Effective Date” shall have the meaning set forth in Section 6 hereof.

 (n) “Employee” shall mean any person employed by the Company or any Parent or Subsidiary of the Company. The
payment of a Director’s fee by the Company shall not be sufficient to constitute “employment” by the Company. 
 (o)
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 (p) “Fair Market
Value” means, as of any date, the value of Common Stock determined as follows: 
 (i) if the Common Stock is listed on any
established stock exchange or national market system in the United States, including without limitation the National Market System of the National Association of Securities Dealers, Inc. Automated Quotation (“NASDAQ”) System, its Fair
Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the last market trading day prior to the time of determination, as reported in The Wall Street
Journal or such other source as the Administrator deems reliable; 
 (ii) if the Common Stock is quoted on the NASDAQ System (but not on The
National Market System thereof) or regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the high bid and low asked prices for the Common Stock for the last market
trading day prior to the time of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or 
 (iii) in the absence of an established market for the Common Stock, the Fair Market Value thereof shall be determined in good faith by the Board. 
 (q) “Incentive Stock Option” shall mean an Option intended to qualify as an incentive stock option within the meaning of
Section 422 of the Code. 

 (r) “Nonstatutory Stock Option” shall mean an Option not intended to qualify as
an Incentive Stock Option. 
 (s) “Officer” shall mean a person who is an officer of the Company within the meaning
of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder, or any successor thereto and (i) every Director or senior officer of the Company, (ii) every Director or senior officer of a company that is
itself an insider or subsidiary of the Company, (iii) any person or company who beneficially owns, directly or indirectly, voting securities of the Company or who exercises control or direction over voting securities of the Company or a
combination of both carrying more than 10% of the voting rights attached to all voting securities of the Company for the time being outstanding other than voting securities held by the person or company as underwriter in the course of a
distribution, and (iv) the Company where it has purchased, redeemed or otherwise acquired any of its securities, for so long as it holds any of its securities. 
 (t) “Option” shall mean an option to purchase Common Stock granted pursuant to the Plan. 
 (u) “Optionee” shall mean an Employee or Consultant who receives an Option. 
 (v)
“Parent” shall mean a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code. 
 (w) “Plan” shall mean this 2005 Stock Plan, as amended. 
 (x) “Purchase
Right” shall mean an opportunity to make a direct purchase of Common Stock. 
 (y) “Rule 16b-3” shall
mean Rule 16b-3 promulgated under the Exchange Act as the same may be amended from time to time, or any successor provision. 
 (z)
“Share” shall mean a share of the Common Stock, as adjusted in accordance with Section 14 of the Plan. 
 (aa)
“Stock Bonus” shall mean a bonus award of Common Stock. 
 (bb) “Stock Rights” shall refer
collectively to Options, Stock Bonuses or Purchase Rights granted pursuant to the Plan. 
 (cc) “Subsidiary” shall
mean a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code. 
 3. Stock
Subject to the Plan. The stock subject to Stock Rights shall be authorized but unissued shares of Common Stock. The maximum number of Shares that may be issued 

 
pursuant to the Plan is 3,062,689 shares, subject to adjustment as provided herein. Any such Shares may be issued as Incentive Stock Options, Nonstatutory
Stock Options or Stock Bonuses, or to persons or entities making purchases pursuant to Purchase Rights, so long as the number of Shares so issued does not exceed such aggregate number, as adjusted. If any Option granted under the Plan should expire
or become unexercisable for any reason without having been exercised in full or shall cease for any reason to be exercisable in whole or part, or if the Company shall reacquire any Shares issued pursuant to Stock Rights, the unpurchased Shares that
were subject thereto and any Shares so reacquired by the Company shall, unless the Plan shall have been terminated, become available for future grant under the Plan. 
 4. Administration of the Plan. 
 (a) Procedure. 
 (i) Multiple Administrative Bodies. The Plan may be administered by different Committees with respect to different groups of Employees and
Consultants. 
 (ii) Section 162(m). To the extent that the Administrator determines it to be desirable to qualify Options
granted hereunder as “performance-based compensation” within the meaning of Section 162(m) of the Code, the Plan shall be administered by a Committee of two or more “outside directors” within the meaning of
Section 162(m) of the Code. 
 (iii) Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt under Rule
16b-3, the transactions contemplated hereunder shall be structured to satisfy the requirements for exemption under Rule 16b-3. 
 (iv)
Other Administration. Other than as provided above, the Plan shall be administered by (A) the Board or (B) a Committee, which committee shall be constituted to satisfy Applicable Laws. 
 (b) Powers of the Administrator. Subject to compliance with Applicable Laws, and further subject to the provisions of the Plan and in the case of
a Committee, the specific duties delegated by the Board to such Committee, the Administrator shall have the authority, in its discretion: 
 (i) to determine the Fair Market Value of the Common Stock, in accordance with Section 2(p) of the Plan; 
 (ii) to select the
Employees and Consultants to whom Stock Rights may from time to time be granted hereunder; 
 (iii) to determine whether and to what extent
Stock Rights are granted hereunder; 
 (iv) to determine the number of shares of Common Stock subject to any Stock Right granted hereunder;

 (v) to approve forms of agreement for use under the Plan; 
 (vi) to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Stock Right granted hereunder (including, but not
limited to, the exercise price and any restriction or limitation, or any vesting acceleration or waiver of forfeiture restrictions regarding any Option and/or the shares of Common Stock relating thereto, the purchase price of Shares subject to each
Purchase Right, and the form of consideration to be paid to the Company for the exercise of any Option or purchase of Shares with respect to a Stock Right, based in each case on such factors as the Administrator shall determine, in its sole
discretion); 
 (vii) to determine (subject to Section 10) the time or times when each Option shall become exercisable and the duration
of the exercise period; 
 (viii) to determine whether restrictions such as repurchase options are to be imposed on Shares subject to
Options, Stock Bonuses and Purchase Rights and the nature of such restrictions, if any; 
 (ix) to determine whether, to what extent and
under what circumstances Common Stock and other amounts payable with respect to an award under this Plan shall be deferred either automatically or at the election of the participant (including providing for and determining the amount, if any, of any
deemed earnings on any deferred amount during any deferral period); 
 (x) to construe and interpret the terms of the Plan and awards
granted pursuant to the Plan; 
 (xi) to institute an option exchange program; and 
 (xii) to make all other determinations necessary or advisable for the administration of the Plan. 
 (c) Effect of Administrator’s Decision. All decisions, determinations and interpretations of the Administrator shall be final and binding on
all holders of any Stock Rights. The interpretation and construction by the Administrator of any provisions of the Plan or of any Stock Right granted under it shall be final unless otherwise determined by the Board. The Administrator may from time
to time adopt such rules and regulations for carrying out the Plan as it may deem best. No member of the Board or any Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Stock Right granted
under it. 
 5. Eligibility. 
 (a) Nonstatutory Stock Options, Stock Bonuses and Purchase Rights may be granted to Employees and Consultants. Incentive Stock Options may be granted only to Employees. An Employee or Consultant who has been granted a Stock right may, if he
or she is otherwise eligible, be granted additional Stock Rights. 

 (b) Each Option shall be designated in the written option agreement as either an Incentive Stock Option
or a Nonstatutory Stock Option. However, notwithstanding such designations, to the extent that the aggregate Fair Market Value of Options that are exercisable for the first time by an Optionee during any calendar year (under all plans of the Company
or any Parent or Subsidiary) exceeds $100,000, (or such higher value as permitted under Code section 422 at the time of such determination), such excess Options shall be treated as Nonstatutory Stock Options. 
 (c) For purposes of Section 5(b) hereof, Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair
Market Value of the Shares shall be determined as of the time the Option with respect to such Shares is granted. 
 (d) The Plan shall not
confer upon any holder of a Stock Right any right with respect to the continuation of an employment or consulting relationship with the Company, nor shall such Stock Right interfere in any way with his or her right or the Company’s right to
terminate his or her employment or consulting relationship at any time, with or without cause. 
 (e) The terms of any Stock Right shall
comply with Applicable Laws. 
 6. Term of Plan. The Plan shall become effective upon the earlier to occur of its adoption by the
Board or its approval by the stockholders of the Company (the “Effective Date”). It shall continue in effect for a term of ten (10) years, unless sooner terminated under Section 15 of the Plan. 
 7. Granting of Stock Rights. Stock Rights may be granted under the Plan at any time after the Effective Date, as set forth in Section 6, and
prior to 10 years thereafter. The date of grant of a Stock Right under the Plan will be the date specified by the Administrator at the time it grants the Stock Right; provided, however, that such date shall not be prior to the date on
which the Administrator acts. 
 8. Term of Option. The term of each Option shall be the term stated in the Option Agreement;
provided, however, that in the case of an Incentive Stock Option, the term shall be no more than ten (10) years from the date of grant thereof or such shorter term as may be provided in the Option Agreement. However, in the case
of an Incentive Stock Option granted to an Optionee who, at the time the Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of
the Option shall be five (5) years from the date of grant thereof or such shorter term as may be provided in the Option Agreement. 
 9.
Option Exercise Price and Consideration. 
 (a) The per Share exercise price for the Shares to be issued pursuant to exercise of an
Option shall be such price as is determined by the Administrator, but shall be no 

 
less than 100% of the Fair Market Value on the date of grant; provided, that, in the case of an Incentive Stock Option granted to an Employee
who, at the time of the grant of such Incentive Stock Option, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no
less than 110% of the Fair Market Value per Share on the date of grant. 
 (b) The consideration to be paid for the Shares to be issued upon
exercise of an Option, including the method of payment, shall be determined by the Administrator (and, in the case of an Incentive Stock Option, shall be determined at the time of grant) and may consist entirely of (1) cash, (2) check,
(3) other Shares that (x) in the case of Shares acquired upon exercise of an Option either have been owned by the Optionee for more than six months on the date of surrender or were not acquired, directly or indirectly, from the Company,
and (y) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised, (4) authorization from the Company to retain from the total number of Shares as to
which the Option is exercised that number of Shares having a Fair Market Value on the date of exercise equal to the exercise price for the total number of Shares as to which the Option is exercised, (5) delivery of a properly executed exercise
notice together with irrevocable instructions to a broker to deliver promptly to the Company the amount of sale or loan proceeds required to pay the exercise price, (6) any combination of the foregoing methods of payment, or (7) as
determined by the Administrator, such other consideration and method of payment for the issuance of Shares to the extent permitted under Applicable Laws. No Optionee shall receive financial assistance from the Company in connection with the exercise
of any Option and the purchase price of the Common Stock issuable pursuant to any Option shall be paid in full prior to the issuance of such Common Stock. In making its determination as to the type of consideration to accept, the Administrator shall
consider if acceptance of such consideration may be reasonably expected to benefit the Company. 
 10. Exercise of Option. 

(a) Procedure for Exercise; Rights as a Stockholder. Any Option granted hereunder shall be exercisable at such times and under such conditions
as determined by the Administrator, including performance criteria with respect to the Company and/or the Optionee, and as shall be permissible under the terms of the Plan. 
 An Option may not be exercised for a fraction of a Share. 
 An Option shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the terms of the Option by the person entitled to exercise the Option and full payment
for the Shares with respect to which the Option is exercised has been received by the Company. Full payment may, as authorized by the Administrator, consist of any consideration and method of payment allowable under Section 9(b) of the Plan.
Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the stock certificate evidencing such Shares, no right to vote or receive dividends or any other rights
as a stockholder shall exist with respect thereto, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such stock certificate promptly upon exercise of the Option. No adjustment will be made for a dividend or
other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 14 of the Plan. 

 Exercise of an Option in any manner shall result in a decrease in the number of Shares which thereafter
may be available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised. 
 (b) Termination of Status as an Employee or Consultant. In the event of termination of an Optionee’s Continuous Status as an Employee or Consultant for any reason other than by reason of death or disability, such Optionee may,
but only within thirty (30) days (or such other period of time, not exceeding three (3) months in the case of an Incentive Stock Option or six (6) months in the case of a Nonstatutory Stock Option, as is determined by the
Administrator, with such determination in the case of an Incentive Stock Option being made at the time of grant of the Option) after the date of such termination (but in no event later than the date of expiration of the term of such Option as set
forth in the Option Agreement), exercise his or her Option to the extent that he or she was entitled to exercise it at the date of such termination. To the extent that the Optionee was not entitled to exercise the Option at the date of such
termination, or if the optionee does not exercise such Option (which he or she was entitled to exercise) within the time specified herein, the Option shall terminate. 
 (c) Disability of Optionee. Notwithstanding the provisions of Section 10(b) above, in the event of termination of an Optionee’s Continuous Status as an Employee or Consultant as a result of his or her
disability, all unvested options under the Optionee’s Option shall immediately vest, and he or she may, but only within twelve (12) months (or such shorter period of time as is determined by the Administrator, with such determination in
the case of an Incentive Stock Option being made at the time of grant of the Option) from the date of such termination (but in no event later than the date of expiration of the term of such Option as set forth in the Option Agreement), exercise his
or her Option. To the extent that he or she does not exercise such Option within the time specified herein, the Option shall terminate. 
 (d) Death of Optionee. In the event of the death of an Optionee: 
 (i) during the term of the Option while such Optionee is
at the time of his death an Employee or Consultant of the Company and who shall have been in Continuous Status as an Employee or Consultant since the date of grant of the Option, all unvested options under the Optionee’s Option shall
immediately vest, and the Option may be exercised, at any time within twelve (12) months (or such shorter period of time as is determined by the Administrator, with such determination in the case of an Incentive Stock Option being made at the
time of grant of the Option) following the date of death (but in no event later than the date of expiration of the term of such Option as set forth in the Option Agreement), by the Optionee’s estate or by a person who acquired the right to
exercise the Option by bequest or inheritance; or 

 (ii) within thirty (30) days (or such other period of time not exceeding three (3) months as
is determined by the Administrator, with such determination in the case of an Incentive Stock Option being made at the time of grant of the Option) after the termination of Continuous Status as an Employee or Consultant, the Option may be exercised,
at any time within twelve (12) months following the date of death (but in no event later than the date of expiration of the term of such Option as set forth in the Option Agreement), by the Optionee’s estate or by a person who acquired the
right to exercise the Option by bequest or inheritance, but only to the extent of the right to exercise that had accrued at the date of termination. 
 11. Withholding Taxes. Upon the exercise of a Nonstatutory Stock Option, or the grant of a Stock Bonus or Purchase Right for less than the Fair Market Value of the Common Stock, the making of a Disqualifying
Disposition, the vesting of restricted Common Stock acquired on the exercise of a Stock Right hereunder or the surrender of an Option pursuant to Section 17, the Company, in accordance with Section 3402(a) of the Code and any applicable
state statute or regulation, may require the Optionee, Stock Bonus recipient or purchaser to pay to the Company additional withholding taxes in respect of the amount that is considered compensation includable in such person’s gross income. With
respect to any such event, the Administrator in its discretion may condition such event on the payment by the Optionee, Stock Bonus recipient or purchaser of any such additional withholding taxes. The Company shall not be required to issue any
Shares under the Plan until such obligations are satisfied. 
 12. Satisfaction of Withholding Tax Obligations. At the sole and
absolute discretion of the Administrator, the holders of Stock Rights may satisfy withholding obligations as provided in this Section. When a holder of a Stock Right incurs tax liability in connection with the exercise or receipt of Stock Rights,
the making of a Disqualifying Disposition, or the vesting of restricted Common Stock acquired on the exercise of a Stock Right hereunder, which tax liability is subject to tax withholding under applicable tax laws, and the holder of such Stock Right
is obligated to pay the Company an amount required to be withheld under applicable tax laws, the holder of such Stock Right may satisfy the withholding tax obligation by one or some combination of the following methods: (a) by cash payment; or
(b) out of his or her current compensation; (c) if permitted by the Administrator, in its discretion, by surrendering to the Company Shares that (i) in the case of Shares previously acquired from the Company, have been owned by such
holder for more than six (6) months on the date of surrender, and (ii) have a Fair Market Value on the date of surrender equal to or less than such holder’s marginal tax rate times the ordinary income recognized; or (d) by
electing to have the Company withhold from the Shares to be issued upon exercise of the Stock Right that number of Shares having a Fair Market Value equal to the amount required to be withheld. For this purpose, the Fair Market Value of the Shares
to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined. 
 All elections by any holder of
Stock Rights to have Shares withheld to satisfy tax withholding obligations shall be made in writing in a form acceptable to the Administrator. 
 13. Non-Transferability of Stock Rights. Unless determined otherwise by the Administrator, a Stock Right may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of
descent or distribution and may be 

 
exercised, during the lifetime of the holder, only by the holder of such Stock Right. If the Administrator makes a Stock Right transferable, such Stock Right
shall contain such additional terms and conditions as the Administrator deems appropriate. 
 14. Adjustments Upon Changes in
Capitalization or Merger. 
 (a) Changes in Capitalization. Subject to any required action by the stockholders of the Company, the
number of shares of Common Stock covered by each outstanding Stock Right, the number of shares of Common Stock that have been authorized for issuance under the Plan but as to which no Stock Rights have yet been granted or which have been returned to
the Plan upon cancellation or expiration of a Stock Right, and the price per share of Common Stock covered by each such outstanding Stock Right, shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued shares of Common Stock effected without receipt of consideration
by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Administrator,
whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect,
and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to a Stock Right. 
 (b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Board shall notify the holder of a Stock Right as soon as practicable prior to the effective date of such proposed action. To
the extent it has not been previously exercised, such Stock Right will terminate immediately prior to the consummation of such proposed action. 
 (c) Acceleration upon Change in Control. In the event of a Change in Control of the Company, all outstanding Stock Rights granted under the Plan and any restricted Shares acquired on the exercise of a Stock Right shall become vested
and immediately and fully exercisable, and all forfeiture restrictions shall be waived, and may either (i) be assumed or an equivalent option or right shall be substituted by such successor corporation or a Parent or Subsidiary of such
successor corporation or (ii) terminate ten (10) days after the Administrator shall notify the holder of such vesting and termination. For the purposes of this Section, the Stock Right shall be considered assumed if, following the merger
or sale of assets, the Stock Right confers the right to purchase or receive, for each Share subject to the Stock Right immediately prior to the merger or sale of assets, the consideration (whether stock, cash, or other securities or property)
received in the merger or sale of assets by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of
the outstanding Shares); provided, however, that if such consideration received in the merger or sale of assets is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the
successor corporation, provide for the consideration to be received upon the 

 
exercise of the Stock Right, for each Share subject to the Stock Right, to be solely common stock of the successor corporation or its Parent equal in fair
market value to the per share consideration received by holders of Common Stock in the merger or sale of assets. 
 (d) Certain
Distributions. In the event of any distribution to the Company’s stockholders of securities of any other entity or other assets (other than dividends payable in cash or stock of the Company) without receipt of consideration by the Company,
the Administrator may, in its discretion, appropriately adjust the price per share of Common Stock covered by each outstanding Stock Right to reflect the effect of such distribution. 
 15. Amendment and Termination of the Plan. 
 (a) Amendment and Termination. The Board may amend or terminate the Plan from time to time in such respects as the Board may deem advisable. 
 (b) Stockholder Approval. The Company shall obtain stockholder approval of any material Plan amendment (including but not limited to any downward repricing of outstanding options or increase in the total number
of Shares that may be issued under the Plan) and to the extent necessary and desirable to comply with Applicable Laws. 
 (c) Effect of
Amendment or Termination. Any such amendment or termination of the Plan shall not adversely alter or impair the rights of a holder of Stock Rights, without his, her or its consent, under any Stock Right previously granted. 
 16. Conditions Upon Issuance of Shares. Shares shall not be issued pursuant to the exercise of a Stock Right unless the exercise of such Stock
Right and the issuance and delivery of such Shares pursuant thereto shall comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance. As a condition to the exercise of a Stock
Right, the Company may require the person exercising such Stock Right to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such
Shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned relevant provisions of law. 
 17. Surrender of Stock Rights for Cash or Stock. The Administrator may, in its sole and absolute discretion and subject to such terms and conditions as it deems appropriate, accept the surrender by a holder of a Stock Right granted
to him, her or it under the Plan and authorize payment in consideration therefor of an amount equal to the difference between the purchase price payable for the Shares under the instrument granting the Stock Right and the Fair Market Value of the
Shares subject to the Stock Right (determined as of the date of such surrender of the Stock Right). Such payment shall be made in shares of Common Stock valued at Fair Market Value on the date of such surrender, or in cash, or partly in such shares
of Common Stock and partly in cash as the Administrator shall determine. The surrender shall be permitted only if the Administrator determines that such surrender is consistent with the purpose set forth in Section 1, and only to the extent
that the Stock Right is exercisable under the terms of this Plan on the date of surrender. In no event shall a holder surrender his or her Stock Right under this Section 

 
if the Fair Market Value of the Shares on the date of such surrender is less than the purchase price payable for the Shares subject to the Stock Right. Any
Incentive Stock Option surrendered pursuant to the provisions of this Section shall be deemed to have been converted into a Nonstatutory Stock Option immediately prior to such surrender. 
 18. Conversion of Incentive Stock Options into Nonstatutory Stock Options; Termination. The Administrator, with consent of any Optionee, may in
its discretion take such actions as may be necessary to convert an Optionee’s Incentive Stock Option(s) or any installments or portions of installments thereof that have not been exercised on the date of conversion into Nonstatutory Stock
Option(s) at any time prior to the expiration of such Incentive Stock Option(s). These actions may include, but not be limited to, accelerating the exercisability or extending the exercise period of the appropriate installments of Optionee’s
Options. At the time of such conversion, the Administrator, with the consent of the Optionee, may impose these conditions on the exercise of the resulting Nonstatutory Stock Option(s) as the Administrator in its discretion may determine, provided
that the conditions shall be consistent with the Plan. Nothing in the Plan shall be deemed to give any Optionee the right to have such Optionee’s Incentive Stock Option(s) converted into Nonstatutory Stock Option(s), and no conversion shall
occur until and unless the Administrator takes appropriate action. The Administrator, with the consent of the Optionee, may also terminate any portion of any Incentive Stock Option that has not been exercised at the time of the termination.

 19. Notice to Company of Disqualifying Disposition. Each Employee who receives an Incentive Stock Option must agree to notify the
Company in writing immediately after the employee makes a Disqualifying Disposition of any Common Stock acquired pursuant to the exercise of an Incentive Stock Option. 
 20. Reservation of Shares. The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. The
inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of
any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 
 21. Form of Stock Rights Agreement. Stock Rights shall be evidenced by written agreements in such forms as the Board shall approve. 

 SALIX PHARMACEUTICALS, LTD. 
 2005 STOCK PLAN 
 NOTICE OF STOCK OPTION GRANT 
  

			
	____________________________________	 	__________________
		
	____________________________________	 	Grant Number
		
	____________________________________	 	
	Optionee Name and Address)	 	

 You have been granted an option to purchase Common Stock of Salix Pharmaceuticals, Ltd. (the
“Company”) as follows: 
  

			
	Date of Grant:	 	___________________________
		
	Vesting Commencement Date:	 	___________________________
		
	Exercise Price Per Share:	 	___________________________
		
	Total Number of Shares Granted:	 	___________________________
		
	Total Exercise Price:	 	___________________________
		
	Type of Option:	 	___________  Incentive Stock Option (“ISO”)
		
		 	___________  Nonstatutory Stock Option (“NSO”)
		
	Term/Expiration Date:	 	10 Years/______________
		
	Vesting Schedule:	 	This Option may be exercised, in whole or in part, in accordance with the following schedule: 1/4 of the shares subject to this Option shall vest and become exercisable on the twelve-month
anniversary of the Vesting Commencement Date and 1/48th of the shares on each monthly anniversary
thereafter.
		
	Termination Period:	 	Option may be exercised, to the extent vested as of the date of such termination, for 90 days after termination of Continuous Status as an Employee or Consultant except as set forth in Sections
6 and 7 of the Stock Option Agreement (but in no event later than the Expiration Date).

 By your signature and the signature of the Company’s representative below, you and the
Company agree that this option is granted under and governed by the terms and conditions of the 2005 Stock Plan and the Stock Option Agreement, all of which are attached and made a part of this document. 
  

					
	OPTIONEE:	  	SALIX PHARMACEUTICALS, LTD.
			
	______________________________________________	  	By:	 	_______________________________________________
			
	(Signature)	  	Name:	 	_______________________________________________
			
	 ______________________________________________
 (Printed
or Typed Name)
	  	Title:	 	_______________________________________________

 SALIX PHARMACEUTICALS, LTD. 
 2005 STOCK PLAN 
 STOCK OPTION AGREEMENT 
 1. Grant of Option. Salix Pharmaceuticals, Ltd., a Delaware corporation (the “Company”), hereby grants to the Optionee
named in the Notice of Grant (the “Optionee”), an option (the “Option”) to purchase a total number of shares of Common Stock (the “Shares”) set forth in the Notice of Grant, at
the exercise price per share set forth in the Notice of Grant (the “Exercise Price”) subject to the terms, definitions and provisions of the Salix Pharmaceuticals, Ltd. 2005 Stock Plan (the “Plan”)
adopted by the Company, which is incorporated herein by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Option. 
 If designated an Incentive Stock Option, this Option is intended to qualify as an Incentive Stock Option as defined in Section 422 of the Code, or
any successor provision. 
 2. Exercise of Option. This Option shall be exercisable during its term in accordance with the Vesting
Schedule set out in the Notice of Grant and with the provisions of Section 10 of the Plan as follows. 
 (i) Right to Exercise.

 (a) This Option may not be exercised for a fraction of a share. 
 (b) In the event of Optionee’s death, disability or other termination of employment or consulting relationship, the exercisability of the Option is
governed by Sections 5, 6 and 7 below, subject to the limitation contained in subsection 2(i)(c). 
 (c) In no event may this Option be
exercised after the date of expiration of the term of this Option as set forth in the Notice of Grant. 
 (ii) Method of Exercise.
This Option shall be exercisable by written notice (in the form attached as Exhibit A) which shall state the election to exercise the Option, the number of Shares in respect of which the Option is being
exercised, and such other representations and agreements as to the holder’s investment intent with respect to such shares of Common Stock as may be required by the Company pursuant to the provisions of the Plan. Such written notice shall be
signed by the Optionee and shall be delivered in person or by certified mail to the Chief Financial Officer of the Company. The written notice shall be accompanied by payment of the Exercise Price. This Option shall be deemed to be exercised upon
receipt by the Company of such written notice accompanied by the Exercise Price. 
 No Shares will be issued pursuant to the exercise of an
Option unless such issuance and such exercise shall comply with all relevant provisions of law and the requirements of any stock exchange upon which the Shares may then be listed. Assuming such compliance, for income tax purposes the Shares shall be
considered transferred to the Optionee on the date on which the Option is exercised with respect to such Shares. 

 3. Method of Payment. Payment of the Exercise Price shall be by any of the following, or a
combination thereof, at the election of the Optionee: 
 (i) cash; or 
 (ii) check; or 
 (iii) surrender of other
shares of Common Stock of the Company which (a) in the case of Shares acquired pursuant to the exercise of a Company option, either have been owned by the Optionee for more than six (6) months on the date of surrender or were not acquired,
directly or indirectly, from the Company, and (b) have a fair market value on the date of surrender equal to the aggregate Exercise Price for the total number of Shares as to which the Option is being exercised; or 
 (iv) authorization from the Company to retain from the total number of Shares as to which the Option is exercised that number of Shares having a fair
market value on the date of exercise equal to the aggregate exercise price for the total number of Shares as to which the Option is exercised; or 
 (v) delivery of a properly executed exercise notice together with irrevocable instructions to a broker to deliver promptly to the Company the amount of sale or loan proceeds required to pay the exercise price; or 
 (vi) any combination of the foregoing methods of payment. 
 4. Restrictions on Exercise. This Option may not be exercised until such time as the Plan has been approved by the stockholders of the Company, or if the issuance of such Shares upon such exercise or the method
of payment of consideration for such Shares would constitute a violation of any applicable federal or state securities or other law or regulation, including any rule under Part 207 of Title 12 of the Code of Federal Regulations
(“Regulation G”) as promulgated by the Federal Reserve Board. As a condition to the exercise of this Option, the Company may require Optionee to make any representation and warranty to the Company as may be required by any
applicable law or regulation. 
 5. Termination of Relationship. In the event of termination of Optionee’s Continuous Status as
an Employee or Consultant, Optionee may, to the extent otherwise so entitled at the date of such termination (the “Termination Date”), exercise this Option during the Termination Period set out in the Notice of Grant. To the
extent that Optionee was not entitled to exercise this Option at the Termination Date, or if Optionee does not exercise this Option within the time specified herein, the Option shall terminate. 
 6. Disability of Optionee. Notwithstanding the provisions of Section 5 above, in the event of termination of Optionee’s Continuous
Status as an Employee or Consultant as a result of his or her disability, all unvested options under this Option shall immediately vest, and Optionee may, but only within twelve (12) months from the date of termination of employment (but in no
event later than the date of expiration of the term of this Option as set forth in Section 9 below), exercise this Option. To the extent that Optionee does not exercise such Option within the time specified herein, the Option shall terminate.

  

 7. Death of Optionee. Notwithstanding the provisions of Section 5 above, in the event of the
death of Optionee: 
 (i) during the term of this Option and while an Employee or Consultant of the Company and having been in Continuous
Status as an Employee or Consultant since the date of grant of the Option, all unvested options under this Option shall immediately vest, and the Option may be exercised at any time within twelve (12) months following the date of death (but in
no event later than the date of expiration of the term of this Option as set forth in Section 9 below), by Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance; or 
 (ii) within thirty (30) days after the termination of Optionee’s Continuous Status as an Employee or Consultant, the Option may be exercised,
at any time within twelve (12) months following the date of death (but in no event later than the date of expiration of the term of this Option as set forth in Section 9 below), by Optionee’s estate or by a person who acquired the
right to exercise the Option by bequest or inheritance, but only to the extent of the right to exercise that had accrued at the date of termination. 
 8. Non-Transferability of Option. This option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of Optionee only by
Optionee. The terms of this Option shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee. 
 9.
Term of Option. This Option may be exercised only within the term set out in the Notice of Grant, and may be exercised during such term only in accordance with the Plan and the terms of this Option. The limitations set out in Section 8
of the Plan regarding Options designated as Incentive Stock Options and Options granted to more than ten percent (10%) stockholders shall apply to this Option. 
 10. Taxation Upon Exercise of Option. Optionee understands that, upon exercising a Nonstatutory Stock Option, he or she will recognize income for tax purposes in an amount equal to the excess of the then fair
market value of the Shares over the exercise price. However, the timing of this income recognition may be deferred for up to six months if Optionee is subject to Section 16 of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). If the Optionee is an employee, the Company will be required to withhold from Optionee’s compensation, or collect from Optionee and pay to the applicable taxing authorities, an amount equal to a
percentage of this compensation income. Additionally, the Optionee may at some point be required to satisfy tax withholding obligations with respect to the disqualifying disposition of an Incentive Stock Option. The Optionee shall satisfy his or her
tax withholding obligation arising upon the exercise of this Option by one or some combination of the following methods: (i) by cash payment; (ii) out of Optionee’s current compensation; (iii) if permitted by the Administrator,
in its discretion, by surrendering to the Company Shares which (a) in the case of Shares previously acquired from the Company, have been owned by the Optionee for more 
  

 than six months on the date of surrender, and (b) have a fair market value on the date of surrender equal to or
greater than Optionee’s marginal tax rate times the ordinary income recognized; (iv) by electing to have the Company withhold from the Shares to be issued upon exercise of the Option that number of Shares having a fair market value equal
to the amount required to be withheld. For this purpose, the fair market value of the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined (the “Tax Date”).

 If the Optionee is subject to Section 16 of the Exchange Act (an “Insider”), any surrender of previously
owned Shares to satisfy tax withholding obligations arising upon exercise of this Option must comply with the applicable provisions of Rule 16b-3 promulgated under the Exchange Act (“Rule 16b-3”) and shall be subject to such
additional conditions or restrictions as may be required thereunder to qualify for the maximum exemption from Section 16 of the Exchange Act with respect to Plan transactions. 
 All elections by an Optionee to have Shares withheld to satisfy tax withholding obligations shall be made in writing in a form acceptable to the
Administrator and shall be subject to the following restrictions: 
 (1) the election must be made on or prior to the applicable Tax Date;

 (2) once made, the election shall be irrevocable as to the particular Shares of the Option as to which the election is made; 

(3) all elections shall be subject to the consent or disapproval of the Administrator; and 
 (4) if the Optionee is an Insider, the election must comply with the applicable provisions of Rule 16b-3 and shall be subject to such additional
conditions or restrictions as may be required thereunder to qualify for the maximum exemption from Section 16 of the Exchange Act with respect to Plan transactions. 
 11. Tax Consequences. Set forth below is a brief summary as of the date of this Option of some of the U.S. federal and North Carolina tax consequences of exercise of this Option and disposition of the Shares.
THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES. 
 (i) Exercise of ISO. If this Option qualifies as an ISO, there will be no regular U.S. federal income tax liability or North Carolina income tax
liability upon the exercise of the Option, although the excess, if any, of the fair market value of the Shares on the date of exercise over the Exercise Price will be treated as an adjustment to the alternative minimum tax for federal tax purposes
and may subject the Optionee to the alternative minimum tax in the year of exercise. 
  

 (ii) Exercise of Nonstatutory Stock Option. If this Option does not qualify as an ISO, there may
be a regular U.S. federal income tax liability and North Carolina income tax liability upon the exercise of the Option. The Optionee will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess,
if any, of the fair market value of the Shares on the date of exercise over the Exercise Price. If Optionee is an employee, the Company will be required to withhold from Optionee’s compensation or collect from Optionee and pay to the applicable
taxing authorities an amount equal to a percentage of this compensation income at the time of exercise. 
 (iii) Disposition of
Shares. In the case of an NSO, if Shares are held for at least one year, any gain realized on disposition of the Shares will be treated as long-term capital gain for U.S. federal and North Carolina income tax purposes. In the case of an ISO, if
Shares transferred pursuant to the Option are held for at least one year after exercise and are disposed of at least two years after the Date of Grant, any gain realized on disposition of the Shares will also be treated as long-term capital gain for
U.S. federal and North Carolina income tax purposes. If Shares purchased under an ISO are disposed of within such one-year period or within two years after the Date of Grant, any gain realized on such disposition will be treated as compensation
income (taxable at ordinary income rates) to the extent of the difference between the Exercise Price and the lesser of (a) the fair market value of the Shares on the date of exercise, or (b) the sale price of the Shares. 
 (iv) Notice of Disqualifying Disposition of ISO Shares. If the Option granted to Optionee herein is an ISO, and if Optionee sells or otherwise
disposes of any of the Shares acquired pursuant to the ISO on or before the later of (a) the date two years after the Date of Grant, or (b) the date one year after the date of exercise, the Optionee shall immediately notify the Company in
writing of such disposition. Optionee agrees that Optionee may be subject to income tax withholding by the Company on the compensation income recognized by the Optionee from the early disposition by payment in cash or out of the current earnings
paid to the Optionee. 
 12. Successors and Assigns. The Company may assign any of its rights under this Agreement to single or
multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Agreement shall be binding upon Optionee and his or her heirs, executors,
administrators, successors and assigns. 
 13. Interpretation. Any dispute regarding the interpretation of this Agreement shall be
submitted by Optionee or by the Company forthwith to the Administrator, who shall review such dispute at its next regular meeting. The resolution of such a dispute by the Administrator, shall be final and binding on the Company and on Optionee.

 14. Governing Law; Severability. This Agreement shall be governed by and construed in accordance with the laws of the State of
North Carolina excluding that body of law pertaining to conflicts of law. Should any provision of this Agreement be determined by a court of law to be illegal or unenforceable, the other provisions shall nevertheless remain effective and shall
remain enforceable. 
  

 15. Notices. Any notice required or permitted hereunder shall be given in writing and shall be
deemed effectively given upon personal delivery or upon deposit in the United States mail by certified mail, with postage and fees prepaid, addressed to the other party at its address as shown below beneath its signature, or to such other address as
such party may designate in writing from time to time to the other party. 
 16. Further Instruments. The parties agree to execute
such further instruments and to take such further action as may be reasonably necessary to carry out the purposes and intent of this Agreement. 
 17. Continuing Employment/Consultancy. OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE OPTION HEREOF IS EARNED ONLY BY CONTINUING CONSULTANCY OR EMPLOYMENT AT THE WILL OF THE COMPANY (NOT THROUGH THE ACT
OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS AGREEMENT, NOR IN THE PLAN, SHALL CONFER UPON OPTIONEE ANY RIGHT WITH RESPECT TO CONTINUATION OF EMPLOYMENT OR
CONSULTANCY BY THE COMPANY, NOR SHALL IT INTERFERE IN ANY WAY WITH OPTIONEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE OPTIONEE’S EMPLOYMENT OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT CAUSE. 
 18. Receipt of Plan. Optionee acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms and provisions
thereof, and hereby accepts this Option subject to all of the terms and provisions thereof. Optionee has reviewed the Plan and this Option in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Option and
fully understands all provisions of the Option. Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan or this Option. 
 [The next page is the signature page.] 
  

 IN WITNESS WHEREOF, the undersigned parties have entered into this Stock Option Agreement effective as of
the Date of Grant reflected in the Notice of Stock Option Grant attached hereto. 
  

					
	COMPANY:	 	SALIX PHARMACEUTICALS, LTD.
			
		 	By:	 	  
 _______________________________________________

			
		 	Name:	 	  
 _______________________________________________

			
		 	Title:	 	  
 _______________________________________________

		 		 	
		
	OPTIONEE:	 	  
 _____________________________________________________

		 	(Signature)
		 	  
 _____________________________________________________

		 	(Printed or Typed Name)

  

 EXHIBIT A 
 SALIX PHARMACEUTICALS, LTD. 
 2005 Stock Option Plan 
 EXERCISE NOTICE 
 Salix Pharmaceuticals, Ltd. 
 1700 Perimeter Park Drive, Suite 100 
 Morrisville, North Carolina 27560 
 Attention: Chief Financial Officer 
 1. Exercise of Option. Effective as of today,
                         , 20    , the undersigned (“Optionee”)
hereby elects to exercise Optionee’s option to purchase              shares of the Common Stock (the “Shares”) of Salix Pharmaceuticals, Ltd. (the
“Company”) under and pursuant to the Company’s 2005 Stock Plan, as amended (the “Plan”) and the [    ] Incentive [    ] Nonstatutory Stock Option Agreement
dated                      (the “Option Agreement”). 
 2. Representations of Optionees. Optionee acknowledges that Optionee has received, read and understood the Plan and the Option Agreement and
agrees to abide by and be bound by their terms and conditions. Optionee represents that Optionee is purchasing the Shares for Optionee’s own account for investment and not with a view to, or for sale in connection with, a distribution of any of
such Shares. 
 3. Compliance with Securities Laws. Optionee understands and acknowledges that the Shares may not have been registered
under the Securities Act of 1933, as amended (the “1933 Act”), and, notwithstanding any other provision of the Option Agreement to the contrary, the exercise of any rights to purchase any Shares is expressly conditioned upon
compliance with the 1933 Act, all applicable state securities laws and all applicable requirements of any stock exchange or over the counter market on which the Company’s Common Stock may be listed or traded at the time of exercise and
transfer. Optionee agrees to cooperate with the Company to ensure compliance with such laws. 
 4. Federal Restrictions on Transfer.
Optionee understands that if the Shares have not been registered under the 1933 Act, they cannot be resold and must be held indefinitely unless they are registered under the 1933 Act or unless an exemption from such registration is available and
that the certificate(s) representing the Shares may bear a legend to that effect. Optionee understands that the Company is under no obligation to register the Shares and that an exemption may not be available or may not permit Optionee to transfer
Shares in the amounts or at the times proposed by Optionee. Specifically, Optionee has been advised that Rule 144 promulgated under the 1933 Act, which permits certain resales of unregistered securities, is not presently available with respect to
the Shares and, in any event requires that the Shares be paid for and then be held for at a specified period before they may be resold under Rule 144. 

 5. Rights as Stockholder. Until the stock certificate evidencing such Shares is issued (as
evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the optioned Shares,
notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such stock certificate promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to
the date the stock certificate is issued, except as provided in the Plan. 
 6. Tax Consultation. Optionee understands that Optionee
may suffer adverse tax consequences as a result of Optionee’s purchase or disposition of the Shares. Optionee represents that Optionee has consulted with any tax consultants Optionee deems advisable in connection with the purchase or
disposition of the Shares and that Optionee is not relying on the Company for any tax advice. 
 7. Stop-Transfer Orders. 

(a) Stop-Transfer Notices. Optionee agrees that, in order to ensure compliance with the restrictions referred to herein, the Company may issue
appropriate “stop transfer” instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records. 
 (b) Refusal to Transfer. The Company shall not be required (i) to transfer on its books any Shares that have been sold or otherwise
transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares shall have been so
transferred. 
 8. Delivery of Payment. Optionee herewith delivers to the Company the full Exercise Price for the Shares. 

9. Entire Agreement. The Plan and Notice of Grant/Option Agreement are incorporated herein by reference. This Agreement, the Plan and the
Notice of Grant/Option Agreement constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Optionee with respect to the subject matter hereof, and is governed by North
Carolina law except for that body of law pertaining to conflict of laws. 
 [The next page is the signature page.] 
  

							
	Submitted by: 	 	        Accepted by:
		
	OPTIONEE: 	 	        SALIX PHARMACEUTICALS, LTD.
				
	  	 	  	 	        By:	 	  
				
	(Signature)	 		 	        Name:	 	  
				
	  	 	  	 	        Title:	 	  
			
	(Printed or Typed Name) 	 		 	
	  
 Address:
	 	  	 	  
         Address:    1700 Perimeter Park Drive

		 	 
                               
	 	                           Suite 100

		 	 
                               
	 	                           Morrisville, NC
27560 
		 		 	                           Attn: Chief
Financial Officer

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