Document:

EXHIBIT 10.3

 

AMENDED AND
RESTATED

 

MASTER AGREEMENT
OF PURCHASE AND SALE

 

BETWEEN

 

THE MAYOR AND
ALDERMEN

 

OF THE CITY OF
VICKSBURG, MISSISSIPPI

 

AND

 

COLUMBIA
PROPERTIES VICKSBURG, LLC,

 

A MISSISSIPPI
LIMITED LIABILITY COMPANY

 

 

TABLE OF CONTENTS

 

	
  DEFINITIONS

  	
  1

  
	
  ARTICLE 1

  	
  5

  
	
  Section 1.01
  Columbia’s Payments to the City Upon Transfer of Riverboat Casino

  	
  5

  
	
  Section 1.01.1.
  Amount of Payments

  	
  5

  
	
  Section 1.01.2.
  Timing and Reporting of Payments

  	
  6

  
	
  Section 1.01.3.
  Means of Payment

  	
  6

  
	
  Section 1.01.4.
  Columbia’s Accounting Records

  	
  6

  
	
  Section 1.01.5.
  City’s Right to Audit

  	
  6

  
	
  Section 1.01.7.
  Late Payment

  	
  7

  
	
   

  	
   

  
	
  ARTICLE 2. SHORESIDE
  FACILITIES SITES DEVELOPMENT

  	
  7

  
	
  Section 2.01.
  Shoreside Facilities Sites Development

  	
  7

  
	
  Section 2.02.
  Columbia’s Right to Perform Alterations and Construct Additions to Casino
  Support Facilities

  	
  8

  
	
  Section 2.03.
  Floodwall

  	
  8

  
	
  Section 2.04.
  Columbia’s Obligation to Maintain Casino Support Facilities

  	
  8

  
	
  Section 2.05.
  Insurance

  	
  9

  
	
  Section 2.05.1.
  Columbia to Insure

  	
  9

  
	
  Section 2.05.1.1.
  Casualty

  	
  9

  
	
  Section 2.05.1.2.
  Liability

  	
  9

  
	
  Section 2.05.1.3.
  Workers’ Compensation

  	
  9

  
	
  Section 2.05.1.4.
  Other

  	
  10

  
	
  Section 2.05.2.
  Nature of Insurance Program

  	
  10

  
	
  Section 2.05.3.
  Policy Requirements and Endorsements

  	
  10

  
	
  Section 2.05.3.1.
  Additional Insureds

  	
  10

  
	
  Section 2.05.3.2.
  Primary Coverage

  	
  10

  
	
  Section 2.05.3.3
  Columbia’s Acts or Omissions

  	
  10

  
	
  Section 2.05.3.4.
  Insurance Carrier Standards

  	
  10

  
	
  Section 2.05.3.5.
  Notice to the City

  	
  10

  
	
  Section 2.05.4.
  Deliveries to the City

  	
  10

  
	
  Section 2.05.5.
  Blanket and Umbrella Policies

  	
  11

  
	
  Section 2.05.6.
  Columbia’s Inability to Obtain Insurance

  	
  11

  
	
  Section 2.05.7.
  Waiver of Certain Claims

  	
  11

  
	
  Section 2.05.8.
  No Representation of Adequate Coverage

  	
  11

  
	
  Section 2.06.
  Damage or Destruction

  	
  12

  
	
  Section 2.06.1.
  Notice; No Payment Abatement

  	
  12

  
	
  Section 2.06.2.
  Adjustment of Claims; Use of Insurance Proceeds

  	
  12

  
	
  Section 2.06.3
  Depository

  	
  12

  
	
  Section 2.07.
  Quiet Enjoyment

  	
  13

  
	
   

  	
   

  
	
  ARTICLE 3. CITY GARAGES

  	
  13

  

 

i

 

	
  Section 3.01.
  City Garages

  	
  13

  
	
   

  	
   

  
	
  ARTICLE 4. INITIAL
  RIVERBOAT CASINO

  	
  13

  
	
  Section 4.01.
  Initial Riverboat Casino

  	
  13

  
	
   

  	
   

  
	
  ARTICLE 5. ADDITIONAL
  COLUMBIA RIVERBOAT CASINO

  	
  14

  
	
  Section 5.01.
  Additional Columbia Riverboat Casino

  	
  14

  
	
   

  	
   

  
	
  ARTICLE 6. CASINO
  DEVELOPMENT RESTRICTION ON THIRD PARTIES

  	
  15

  
	
  Section 6.01.
  Casino Development Restriction on Third Parties

  	
  15

  
	
   

  	
   

  
	
  ARTICLE 7. TERMINATION
  FEE

  	
  16

  
	
  Section 7.01.
  Termination Fee

  	
  16

  
	
  Section 7.02.
  Permanent Removal of Second Riverboat Casino But First Riverboat Casino
  Remains in Operation

  	
  18

  
	
   

  	
   

  
	
  ARTICLE 8. EMPLOYMENT
  IN LOCAL COMMUNITY

  	
  18

  
	
  Section 8.01.
  Employment in Local Community

  	
  18

  
	
   

  	
   

  
	
  ARTICLE 9. CITY’S
  REVERSIONARY INTEREST IN SHORESIDE FACILITIES SITES

  	
  18

  
	
  Section 9.01.
  City’s Reversionary Interest

  	
  18

  
	
  Section 9.02.
  Exchange of Deeds

  	
  18

  
	
   

  	
   

  
	
  ARTICLE 10. CLAUSES TO
  ENSURE MORTGAGEABILITY OF THE SHORESIDE FACILITIES SITES

  	
  19

  
	
  Section 10.01.
  Rights to Mortgage Shoreside Facilities Sites

  	
  19

  
	
  Section 10.02.
  Estoppel Certificates

  	
  19

  
	
  Section 10.02.1.
  Rights of Each Party

  	
  19

  
	
  Section 10.02.2.
  Failure to Execute Estoppel Certificate

  	
  19

  
	
  Section 10.02.3.
  Delivery of Estoppel Certificates

  	
  20

  
	
  Section 10.03.
  Event of Default

  	
  20

  
	
  Section 10.03.1.
  Monetary Default

  	
  20

  
	
  Section 10.03.2.
  Non-Monetary Default

  	
  20

  
	
  Section 10.03.3.
  Remedies

  	
  21

  
	
  Section 10.03.4.
  Pending Dispute Regarding Event of Default

  	
  21

  
	
  Section 10.04.
  In the Event Columbia Temporarily Ceases to Operate the Casino Support
  Facilities or the Riverboat Casino

  	
  22

  
	
  Section 10.05.
  Other Mortgagee Protection Provisions

  	
  23

  
	
  Section 10.05.1.
  Modifications Required by Mortgagee

  	
  23

  
	
  Section 10.05.2.
  Initial Notice

  	
  23

  
	
  Section 10.05.3.
  Termination of Mortgagee’s Rights

  	
  23

  
	
  Section 10.05.4.
  Cancellation, Surrender, Amendment, Etc.

  	
  23

  
	
  Section 10.05.5.
  Copies of Notices

  	
  23

  

 

ii

 

	
  Section 10.05.6.
  Columbia’s Cure Period Expiration Notice

  	
  24

  
	
  Section 10.05.7.
  Right to Perform Covenants and Agreements

  	
  24

  
	
  Section 10.05.8.
  Transfer of Columbia’s Rights

  	
  24

  
	
  Section 10.05.9.
  Notice of Default and Mortgagee’s Cure Rights

  	
  24

  
	
  Section 10.05.10.
  Effect of Cure

  	
  25

  
	
  Section 10.05.11.
  Quiet Enjoyment

  	
  26

  
	
  Section 10.05.12.
  Failure by Mortgagee to Cure Events of Default

  	
  26

  
	
  Section 10.05.13.
  Mortgagee’s Right to Enter the Shoreside Facilities Sites

  	
  26

  
	
  Section 10.05.14.
  Rights of Mortgagee Upon Acquiring Control

  	
  26

  
	
  Section 10.05.15.
  Payments Made by Mortgagee

  	
  27

  
	
  Section 10.06.
  Prohibition on City Granting Mortgage

  	
  27

  
	
  Section 10.07.
  Bankruptcy

  	
  27

  
	
  Section 10.07.1.
  Affecting Columbia

  	
  27

  
	
  Section 10.07.2.
  Affecting the City

  	
  27

  
	
  Section 10.08.
  Default by the City

  	
  28

  
	
   

  	
   

  
	
  ARTICLE 11.
  REPRESENTATIONS, WARRANTIES AND COVENANTS

  	
  28

  
	
  Section 11.01.
  Representations and Warranties

  	
  28

  
	
  Section 11.02.
  Covenants

  	
  30

  
	
  Section 11.03.
  Survival of Representations, Warranties, and Covenants

  	
  30

  
	
  Section 11.04.
  Columbia’s Representations and Warranties

  	
  31

  
	
   

  	
   

  
	
  ARTICLE 12.
  MISCELLANEOUS

  	
  31

  
	
  Section 12.01.
  Execution by Both Parties

  	
  31

  
	
  Section 12.02.
  Captions

  	
  31

  
	
  Section 12.03.
  Entire Agreement

  	
  31

  
	
  Section 12.04.
  Successors and Assigns

  	
  31

  
	
  Section 12.05.
  Sale of Fee Simple Title

  	
  32

  
	
  Section 12.06.
  Gender and Number

  	
  32

  
	
  Section 12.07.
  Attorneys’ Fees and Other Costs

  	
  32

  
	
  Section 12.08.
  Governing Law

  	
  33

  
	
  Section 12.09.
  Notices

  	
  33

  
	
  Section 12.10.
  Period of Time

  	
  34

  
	
  Section 12.11.
  Preparation of Agreement

  	
  34

  
	
  Section 12.12.
  Exhibits

  	
  34

  
	
  Section 12.13.
  Further Agreements

  	
  34

  
	
  Section 12.14.
  No personal Liability

  	
  34

  
	
  Section 12.15.
  Agreement to Cooperate

  	
  34

  
	
  Section 12.17.
  Authority to Execute

  	
  35

  
	
  Section 12.18.
  Force Majeure

  	
  35

  
	
  Section 12.19.
  City as Landowner

  	
  35

  
	
  Section 12.20.
  Counterparts

  	
  35

  
	
  Section 12.21.
  Recording Fees

  	
  35

  

 

iii

 

AMENDED AND
RESTATED

MASTER AGREEMENT OF PURCHASE AND SALE

 

This Amended and Restated
Master Agreement of Purchase and Sale (this “Agreement”) is made and entered
into by and between THE MAYOR AND ALDERMEN OF THE CITY OF VICKSBURG,
MISSISSIPPI (“City”), and COLUMBIA PROPERTIES VICKSBURG, LLC, a Mississippi
limited liability company (“Columbia”).

 

RECITALS:

 

A. The City
implemented a master riverfront redevelopment plan for downtown Vicksburg which
included a riverboat casino and a hotel initially owned by Harrah’s Vicksburg
Corporation. The City and Harrah’s entered into a Master Agreement for Purchase
and Sale dated January 21, 1993, and recorded in Book 978, page 366
of the Warren County Mississippi Land Records. For and in consideration of the
mutual promises and covenants set forth herein the City and Columbia desire to
modify certain provisions of the original Master Agreement for Purchase and
Sale.

 

B. Columbia desires
to operate a riverboat casino and hotel as part of the City’s riverfront
redevelopment plan for downtown Vicksburg.

 

DEFINITIONS

 

Capitalized terms found
herein shall have the meaning ascribed to them in the Master Agreement of
Purchase and Sale, dated January 21, 1993, between The Mayor and Aldermen
of the City of Vicksburg, Mississippi and Harrah’s Vicksburg Corporation,
unless defined herein.

 

The following defined
terms shall have the stated meanings for the entire Agreement unless otherwise
specifically stated in the Agreement itself:

 

“Agreement” shall mean
this Amended and Restated Master Agreement of Purchase and Sale made and
entered into by and between The Mayor and Aldermen of the City of Vicksburg,
Mississippi and Columbia Properties Vicksburg, LLC, a Mississippi limited
liability company.

 

“Bankruptcy Proceedings”
shall mean any proceeding involving a party to this Agreement under the United
States Bankruptcy Code or any similar state or federal statute for the relief
of debtors.

 

“Casino Opening Date”
shall mean that specific date on which the Casino commenced operations in
Mississippi: November 15, 1993.

 

1

 

“Casino Support
Facilities” shall mean the pavilions, walkways, boardwalks, and docking
facilities required to bring customers from the Hotel to the Riverboat Casino,
the City Garages, and related facilities.

 

“Casualty” shall mean any
damage or destruction affecting (i) the Casino Support Facilities; or (ii) the
Riverboat Casino, the Second Riverboat Casino or a substitute riverboat casino.

 

“City Garages” shall mean
the two parking garages containing 800 parking spaces owned by Columbia.

 

“City Property” shall
mean Tract 12, the Crawford Street Property, Tract 11, Tract 39, Air Right
Property, Tract 15, Tract 63 and the Second Riverboat Property, formerly owned
by the City and sold to Harrah’s. See attached Exhibit “A”.

 

“Columbia Sussex
Corporation, Inc. (“CSC”)” shall mean that specific company which is providing
a guaranty on behalf of Columbia in this transaction.

 

“Consumer Price Index”
shall mean the Consumer Price Index for All Urban Consumers published by the
Bureau of Labor Statistics of the United States Department of Labor, United
States City Average, all items (1982-1984 = 100). If such index is no longer
published, then Columbia shall designate a successor or replacement index of
substantially equivalent reliability and objectivity. The Consumer Price Index
in effect for any given date shall be deemed to refer to the Consumer Price
Index last published before such date.

 

“Effective Date” shall
mean that date upon which the Amended and Restated Master Agreement of Purchase
and Sales has been fully executed and delivered by Columbia and the City.

 

“Event of Default” shall
mean the occurrence of any one or more of the circumstances set forth in Section 10.03
arising in relation to the Shoreside Facilities Sites after the Transfer Date
(subject to the rights of mortgagees set forth herein).

 

“Fiscal Month” shall mean
Columbia’s actual fiscal month as in effect from time to time. Such term shall
also mean and refer to any partial fiscal month arising because of a change in
Columbia’s fiscal month, subject to proration of any periodic payments
calculated on the basis of a Fiscal Month.

 

“Fiscal Year” shall mean
Columbia’s actual fiscal year as in effect from time to time. Such term shall
also mean and refer to any partial fiscal year arising because of a change in
Columbia’s fiscal year or because of a variation between the commencement date
of Columbia’s fiscal year and the date when Columbia is required to commence to
pay the Percentage Amount

 

2

 

calculated with respect
to each Fiscal Year (in each case subject to proration of any periodic payments
calculated on the basis of a Fiscal Year).

 

“Fixed Amount” shall mean
the amount payable by Columbia to the City, defined as $562,939.56 per annum,
adjusted annually by the Consumer Price Index, with the base year being 2003.
The annual adjustment will be calculated as of December 1st.

 

“Force Majeure” shall
mean an event of force majeure shall include, but not be limited to, acts of
war, insurrection, civil strife and commotion, labor unrest, acts of God or the
discovery of Hazardous Chemicals.

 

“Gross Revenues” shall
mean all revenues of any nature derived directly or indirectly from the Casino
Support Facilities and the Riverboat Casino, including Net Gaming Revenue Win,
as defined, food and beverage sales and other rental or other receipts from
lessees, sublessees, licensees and concessionaries (but not the gross receipts
of such lessees, sublessees, licensees or concessionaires, provided that such
lessees, sublessees, licensees and concessionaires are not subsidiaries or
affiliates of Columbia), and revenue recorded for complimentary food and
beverage and merchandise extended to patrons as promotional items. The revenue
from the City Garages and the hotel rooms are hereby specifically excluded from
the calculation of Gross Revenues.

 

“Harrah’s Vicksburg
Corporation” or “Harrah’s” shall mean that corporation licensed by the
Mississippi Gaming Commission and operating the facilities that are the subject
of this Agreement and a party to the original Master Agreement prior to the
Transfer Date.

 

“Hazardous Chemical”
shall mean any toxic or hazardous substance as defined in 42 U.S.C. § 9601(14);
any petroleum product, including, without limitation, crude oil or any fraction
thereof, natural gas liquid, liquefied natural gas or synthetic gas, asbestos
and other pollutants, and any chemical subject to reporting under EPCRKA; has
attached to (or been asserted to exist with respect to) the Hotel Site by
reason of any state, federal or local agency or body expending monies to clean
up or remove any substance referred to in Section 11.01(r).

 

“Hotel” shall mean the
Hotel adjacent to the riverboat Casino which contains 117 rooms and various
other related facilities.

 

“Net Gaming Revenue Win”
shall mean the sum total of (a) cash received as winnings from slot
machines, table games, keno, sportsbook, racebook, poker bingo and other games;
(b) cash received in payment for credit extended by Columbia to a patron
for purposes of gaming; and (c) compensation received for conducting any
game in which Columbia is not party to a wager; less the total of all cash paid
out as losses to patrons, those amounts paid to purchase annuities to fund
losses paid to patrons over several years by independent financial institutions
and any other items made deductible as losses in the ordinary course of
business according to Columbia’s standard accounting system.

 

3

 

“Net Revenues” shall mean
Gross Revenues, as defined, less the following revenues actually received by
Columbia and included in Gross Revenues: (i) any gratuities or service
charges added to a customer’s bill; (ii) any credits or refunds made to
customers, guests or patrons; (iii) any sums and credits received by
Columbia for lost or damaged merchandise; (iv) any sales taxes, excise
taxes, gross receipt taxes, admission taxes, entertainment taxes, tourist taxes
or charges received from patrons and passed on to a governmental or
quasi-governmental entity (This is specifically not intended to create a
deduction for any state, county or municipal tax on gaming revenues or gaming
equipment which are imposed on the operator of a gaming facility.); (v) any
proceeds from the sale or other disposition of furnishings and equipment or
other capital assets; (vi) any fire and extended coverage insurance
proceeds; (vii) any condemnation awards; (viii) any proceeds of
financing or refinancing; (ix) any interest on bank account(s); and (x) revenues
representing complimentary food and beverage and merchandise extended to
patrons as promotional items.

 

“Percentage Amount” shall
mean the 1.5 percent (1.5%) of Net Revenues Columbia agrees to pay the
City annually in addition to the Fixed Amount.

 

“Prime Rate” shall mean
the prime rate or equivalent “base” or reference” rate for corporate loans
that, at Columbia’s election, by notice to the City, is: (a) published
from time to time in The Wall Street Journal; (b) announced from
time to time by Citibank, N. A., New York, New York, or any other large United
States “money center” commercial bank designated by Columbia; or (c) if
such rate is no longer so published or announced, then a reasonably equivalent
rate published by an authoritative third party designated by Columbia, subject
to the City’s consent which shall not be unreasonably withheld. Notwithstanding
anything to the contrary in this paragraph, the Prime Rate shall never exceed
the highest rate of interest legally permitted to be charged in transactions of
the character of this Agreement between parties of a character similar to the
City and Columbia.

 

“Riverboat Casino” shall
mean a riverboat casino containing approximately 20,000 square feet of casino
space and approximately 900 gaming positions which will be docked or moored in
and connected with the Casino Support Facilities.

 

“Second Riverboat Casino”
shall mean that certain riverboat casino located or to be located on the Second
Riverboat Property. The exterior of the Second Riverboat Casino shall resemble
the paddlewheel or side wheel riverboats that were an integral part of the
Mississippi riverboat history.

 

“Second Riverboat
Property” shall mean that certain additional 450 feet of tract 63 along the
floodwall as generally depicted on Exhibit “A” which property shall be
adjacent to that certain waterfront property defined as Tract 63 herein, on
which the Riverboat Casino will be docked.

 

4

 

“Shoreside Facilities
Sites” shall mean, collectively, Tracts 11 and 39, Tract 15, Tract 63, the
Second Riverboat Property, Air Right Property, and Selby Property, subject to
the City’s reversionary rights.

 

“Transfer Date” shall
mean the date upon which the Riverboat Casino, Second Riverboat Casino and any
substitute riverboat casino; Hotel; Casino Support Facilities; and all other
properties and facilities contemplated in the Agreement are transferred from
the Harrah’s Vicksburg Corporation to Columbia.

 

“Transfer of Ownership”
shall mean that transfer of the Riverboat Casino, Second Riverboat Casino and
any substitute riverboat casino; Hotel; Casino Support Facilities; and all
other properties and facilities contemplated in the Agreement that are
transferred from Harrah’s Vicksburg Corporation to Columbia.

 

“Waiver of Subrogation”
shall mean a provision in, or endorsement to, any insurance policy required by
this Agreement, by which the insurance carrier agrees to waive all rights of
recovery by way of subrogation against either party to this Agreement in
connection with any loss covered by such insurance policy.

 

A G R E E M E N T:

 

IN CONSIDERATION OF THE
SUMS TO BE PAID BY COLUMBIA TO THE CITY, THE COVENANTS, AGREEMENTS AND
WARRANTIES OF THE PARTIES HEREIN CONTAINED, AND IN CONSIDERATION OF THE
RECITALS SET FORTH ABOVE, WHICH ARE HEREBY INCORPORATED AS PART OF THIS
AGREEMENT BY REFERENCE, AND OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT
AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED, THE CITY AND COLUMBIA AGREE
AS FOLLOWS:

 

ARTICLE 1

 

Section 1.01  Columbia’s Payments to the City Upon
Transfer of Riverboat Casino.

 

Section 1.01.1. Amount of Payments. In
consideration for Columbia’s acquisition of fee simple title subject to the
City’s reversionary interest therein to Tracts 11 and 39, Tract 15, Tract 63,
the Second Riverboat Property, the Selby Property and the Air Right Property,
and in consideration for the City granting Columbia the exclusive casino
development on City-owned or leased property, upon the transfer of ownership of
the Riverboat Casino (“Transfer Date”) and continuing until the date
30 years thereafter, Columbia agrees to pay the City $562,939.56 per annum
adjusted annually by the Consumer Price Index, as defined, with the base year
being the calendar year of the Transfer Date (2003) (“Fixed Amount”), plus
1.5 percent (1.5%) of Net Revenues, as term is defined, (“Percentage
Amount”). The Percentage

 

5

 

Amount shall be payable
monthly, on the 20th of the month, and is based on the preceding month’s
revenue. Inasmuch as amounts due the City will be prorated between Columbia and
Harrah’s on the Transfer Date, Columbia shall pay the Percentage Amount for the
entire month that the Transfer Date occurs, including that portion applicable
to Harrah’s. Columbia shall also pay the Percentage Amount due for the month
preceding the Transfer Date if the Transfer Date is on or prior to the 20th of
the month.

 

Section 1.01.2. Timing and Reporting of Payments.
Columbia shall pay the Fixed Amount in equal monthly installments in advance on
the twentieth (20th) day of each Fiscal Month, as defined,
with the first payment becoming due the month that the Transfer Date occurs if
the Transfer Date is prior to the 20th of the month. If the Transfer Date is on
or after the 20th, then the first payment shall be made the 20th of the following
month.

 

Section 1.01.3. Means of Payment. Columbia shall
pay all amounts payable to the City under Section 1.01 by either of the
following, at Columbia’s election, which election Columbia may change from time
to time by at least thirty (30) days notice to the city: (a) good and
sufficient check (subject to collection) delivered to the City; or (b) wire
transfer to the City’s bank account, which the City shall identify to Columbia
upon request (and the City shall have the right to change from time to time by
at least thirty (30) days notice to Columbia).

 

Section 1.01.4. Columbia’s Accounting Records.
Columbia shall maintain (in Vicksburg or at a central accounting location
identified to the City upon request) accounting records and procedures
complying with Columbia’s accounting standards to enable Columbia to calculate
any Percentage Amount due. Columbia shall preserve Columbia’s books and records
relating to each Fiscal Year, as defined, for at least three (3) years
after the end of such Fiscal Year. If at the conclusion of such three-year
period a dispute is pending between the City and Columbia regarding the amount
of Net Revenues, then Columbia shall continue to preserve such records pending
the final disposition of such dispute. Columbia shall not be responsible for
any of Harrah’s accounting records. Any information regarding Harrah’s
accounting, desired by the City, shall be requested, by the City, directly from
Harrah’s prior to the Transfer Date.

 

Section 1.01.5. City’s Right to Audit. Within
(and in no event later than) one hundred eighty (180) days after the end
of each Fiscal Year, the City shall be entitled to cause a certified public
accountant designated by the City (and approved by Columbia, such approval not
to be unreasonably withheld) to audit Columbia’s books and records relevant to
the calculation of Net Revenues reported by Columbia during the preceding
Fiscal Year. Any audit shall be performed in a reasonable manner, during
ordinary business hours and without unreasonably interfering with Columbia’s
business. If such audit reveals that Net Revenues were understated, then within
thirty (30) days after receipt of the audit with appropriate backup
documentation, Columbia shall pay the net additional Percentage Amount due on
account of the audit corrections. If such audit reveals that Net Revenues were
overstated, then Columbia shall be entitled to a credit against the next
payment(s) of the Percentage Amount in an amount equal to the previous
overpayment revealed by the audit corrections. Any adjusting payment on account
of previous overpayment

 

6

 

or underpayment shall
bear interest at the Prime Rate, as defined, from the date it would have been
paid (or the date of Columbia’s previous overpayment, if applicable) had
Columbia’s annual statement been correct until the date actually paid or
credited. If Percentage Amount was understated by more than 5 percent
(5%), then Columbia shall pay the reasonable cost of such audit; otherwise the
audit shall be conducted at the City’s expense.

 

Columbia hereby agrees to
permit the City to obtain from the state of Mississippi copies of any of its
filings in relation to the development described herein, including the sales
tax, gross revenues tax and any other tax-related information. Columbia hereby
authorizes the state of Mississippi tax commission or other applicable
governmental entity to release such information as requested in writing by the
City. The City shall provide Columbia with a copy of any request made for the
above described information.

 

Section 1.01.6. INTENTIONALLY OMITTED

 

Section 1.01.7. Late Payment. If Columbia makes
any payment required under this Section 1.01 more than thirty
(30) days after such payment is first due and payable, then in addition to
any other remedies the City may have, and without reducing or adversely
affecting any of the City’s other rights and remedies, Columbia shall pay the
City, within thirty (30) days after demand, interest on such late payment,
at an interest rate equal to the Prime Rate, beginning on the thirty-first (31ST) day after such payment was first due and payable and
continuing until the date when Columbia actually makes such payment. If
Columbia makes any payment due under this Section 1.01 more than thirty
(30) days after such payment is due and Columbia has, during the preceding
Fiscal Year, twice previously failed to make any payment due under this Section 1.01
within thirty (30) days after such payment was first due and payable,
then, in addition to any other remedies the City may have, and without reducing
or adversely affecting any of the City’s other rights and remedies, Columbia
shall within thirty (30) days after demand pay the City interest on such
late payment, at an interest rate equal to the Prime Rate, beginning on the
date such payment was first due and payable and continuing until the date when
Columbia actually makes such payment.

 

ARTICLE 2

SHORESIDE FACILITIES SITES DEVELOPMENT

 

Section 2.01. Shoreside Facilities Sites
Development.

 

The City shall give
Columbia its full cooperation and shall cause its employees and representatives
to assist Columbia in applying for and obtaining any re-zoning, licensing, and
permitting processes required by the municipality for the development of the
Casino Support Facilities on the Shoreside Facilities Sites to be undertaken in
an expeditious manner.

 

If Columbia so elects,
the City, at Columbia’s expense, will either apply for or jointly apply for
with Columbia all U.S. Army Corps of Engineers permits required to undertake
the

 

7

 

dredging and construction
activity on the Yazoo River necessary to continue to dock the riverboat casino
and related facilities. Upon the reversion of fee simple title to the City, any
U.S. Army Corps of Engineers permits or licenses received in relation to the
Casino Support Facilities which are assignable or transferable shall be
assigned or transferred by Columbia to the City.

 

Section 2.02. Columbia’s Right to Perform
Alterations and Construct Additions to Casino Support Facilities. At
Columbia’s sole cost and expense, Columbia shall be entitled, but not required,
to make and from time to time alter, modify or reconstruct any improvements,
repairs or alterations to the Casino Support Facilities as Columbia shall
consider necessary or appropriate. Columbia, at its sole cost and expense,
shall have the right to add facilities to the Casino Support Facilities or on
the Shoreside Facilities Sites. Columbia shall have the right to demolish
existing Casino Support Facilities provided that the demolished Casino Support
Facilities are replaced with Casino Support Facilities of comparable value to
those demolished. In the event Columbia desires to demolish all or a part of
the Casino Support Facilities and not replace such Casino Support Facilities
with new Casino Support Facilities of a comparable value, Columbia shall obtain
the written approval of the City prior to the commencement of demolition.
Columbia shall perform all construction work in connection with any
improvement, repair or alteration to the Casino Support Facilities or additions
on the Shoreside Facilities Sites in substantial compliance with all applicable
laws, permits, regulations, licenses and codes.

 

When alterations or
additions are made to the Casino Support Facilities, an “As Built” set of plans
reflecting such alterations or additions shall be delivered to the City after
such alterations and additions are completed.

 

The City has agreed to
close that portion of South Street where Columbia owns both sides of the
street. Columbia will file a petition to close that portion of South Street,
reserving access rights to the floodwall and gates to meet the City’s
obligation under its agreement with the U.S. Army Corps of Engineers. The City
agrees to assist Columbia in filing any such petition. The City further agrees
to assist Columbia with any additional petition to close the streets.

 

Section 2.03. Floodwall. Columbia agrees to
keep the floodwall gates on Tract 15, Tract 63 and the Second Riverboat
Property open and accessible to the City so that said floodwall gates can be
closed by the City in the event of high water. Columbia furthermore agrees to
give the City access over the Shoreside Facilities Sites to the floodwall
located on the Shoreside Facilities Sites to perform maintenance and repair on
said portion of the floodwall. Until such time as the Second Riverboat Property
is utilized for the Second Riverboat Casino, the Clay Street entrance at the
floodwall shall remain open for public vehicular and pedestrian use. It is not
the intention of the parties to covey the strip of land on which the floodwall
actually sits.

 

Section 2.04. Columbia’s Obligation to Maintain
Casino Support Facilities. Columbia agrees to maintain the Casino Support
Facilities, as periodically altered or constructed, in good order, condition
and repair subject to Casualty, as defined, and reasonable wear and tear.

 

8

 

Section 2.05. Insurance.

 

Section 2.05.1. Columbia to Insure. Columbia
shall, at Columbia’s sole cost and expense, prior to reversion of the Shoreside
Facilities Sites and the Casino Support Facilities located thereon to the City,
maintain the following insurance (or its then reasonably available equivalent):

 

Section 2.05.1.1. Casualty. Casualty insurance
providing coverage for the Shoreside Facilities Sites and Casino Support
Facilities and all equipment, fixtures, and machinery at or in the Casino
Support Facilities, against loss, damage, and destruction by fire and other
hazards encompassed under broad form coverage as may be customary for like
properties in Warren County in the state of Mississippi (but Columbia shall in
no event be required to maintain war risk insurance) from time to time, in an
amount not less than 80 percent (80%) of the replacement value of the
insurable buildings, structures, improvements and equipment (excluding
excavations and foundations) located on the Shoreside Facilities Sites, but in
any event sufficient to avoid co-insurance in the event of a partial loss. To
the extent customary for like properties at the time, such insurance shall
include coverage for explosion of steam and pressure boilers and similar
apparatus located in the Casino Support Facilities; an “increased cost of
construction” endorsement; and an endorsement covering demolition and cost of
debris removal.

 

Section 2.05.1.2. Liability. General public
liability insurance against claims for personal injury, death or property
damage occurring upon, in or about the Casino Support Facilities or on the
Shoreside Facilities Sites, including so-called garage keeper’s legal liability
coverage. The coverage under all such liability insurance shall be at least TEN
MILLION DOLLARS AND 00/100 ($10,000,000) in respect of injury or death to a
single person, and at least TEN MILLION DOLLARS AND 00/100 ($10,000,000), in
respect of any one accident, and not less than TEN MILLION DOLLARS AND 00/100
($10,000,000) for property damage. The City shall be entitled, from time to
time, upon one hundred eighty (180) days notice to Columbia to increase
the dollar limits set forth in this paragraph, subject to the following
limitations, which shall be cumulative: (a) such increased limits shall
never exceed the limits initially set forth plus an increase proportionate to
the increase in the Consumer Price Index from the Casino Opening Date to the
date of the adjustment, rounded to the nearest million dollars; (b) such
limits shall never exceed the limits customarily maintained for similar
commercial properties located in Warren County; and (c) the City shall not
be entitled to increase such limits more frequently than once every three (3) years.

 

Section 2.05.1.3. Workers’ Compensation.

 

Workers’ compensation
insurance covering all persons employed in connection with the construction,
alteration, repair or operation of the Casino Support Facilities, and with
respect to whom any claim could be asserted against the City.

 

9

 

Section 2.05.1.4. Other. All insurance required by
any mortgage and such other insurance as Columbia determines appropriate in
exercise of Columbia’s reasonable business judgment.

 

Section 2.05.2. Nature of Insurance Program. Any
or all insurance required by this Agreement may be provided by a “captive”
insurance company affiliated with Columbia or, by notice to the City specifying
the risks being covered by self-insurance, through a self-insurance program
provided, in the latter case, that the self-insuring entity is (a) an
affiliate or subsidiary of Columbia or its parent company; or (b) any
other substantial entity that, in the City’s reasonable judgment, has
sufficient assets and net worth under the circumstances.

 

Section 2.05.3. Policy Requirements and Endorsements.
All insurance policies required by this Agreement shall contain (by endorsement
or otherwise) the following provisions:

 

Section 2.05.3.1. Additional Insureds. To the
extent consistent with ordinary insurance practices, liability insurance
policies shall name as additional insured the City and any mortgagees.

 

Section 2.05.3.2. Primary Coverage. All policies
shall be written as primary policies not contributing with or in excess of any
coverage that the City may carry.

 

Section 2.05.3.3. Columbia’s Acts or Omissions.
Each policy shall include, if available without additional cost, a provision
that any act or omission of Columbia shall not prejudice any other party’s
rights (other than Columbia) under such insurance coverage.

 

Section 2.05.3.4. Insurance Carrier Standards.
Each insurance carrier shall be authorized to do business in the state of
Mississippi and shall have a “Best’s” rating of at least A VII, except to the
extent such insurance is provided in compliance with this Agreement by an
affiliated “captive” insurance company or pursuant to Columbia’s self-insurance
program.

 

Section 2.05.3.5. Notice to the City. The
insurance carrier shall undertake to give the City thirty (30) days prior
written notice of cancellation or non-renewal, other than on account of
nonpayment of premiums, provided that (except in the case of a “captive”
insurance carrier) failure to give such notice shall not adversely affect the
rights or increase the obligations of the insurance carrier.

 

Section 2.05.4. Deliveries to the City. Upon
notice to such effect by the City, Columbia shall deliver to the City policies
or certificates or certified copies of the insurance policies required by this
Agreement, endorsed “Paid” or accompanied by other evidence that the premiums
for such policies have been paid before the expiration of any then current
policy.

 

10

 

Section 2.05.5. Blanket and Umbrella Policies.
Columbia may provide any insurance required by this Agreement pursuant to a “blanket”
or “umbrella” insurance policy, provided that (i) such policy or a
certificate of such policy shall specify the amount(s) of the total
insurance allocated to the Shoreside Facilities Sites and Casino Support
Facilities, which amount(s) shall be subject to reduction on account of
claims made with respect to other properties; and (ii) such policy
otherwise complies with this Agreement.

 

Section 2.05.6. Columbia’s Inability to Obtain
Insurance. If (a) any insurance required by this Agreement should,
after diligent effort by Columbia, be unobtainable at commercially reasonable
rates through no act or omission by Columbia; and (b) Columbia shall
obtain the maximum insurance reasonably obtainable and give written notice to
the City of the extent of Columbia’s inability to obtain any insurance required
to be maintained under this Agreement, then unless Columbia’s inability to
procure and maintain such insurance results from some activity or conduct
within Columbia’s reasonable control, Columbia’s obligation to procure and
maintain such insurance as is unobtainable shall be excused. To the extent that
such insurance may be obtainable by the City at a cost per million dollars of
coverage not exceeding 110 percent (110%) of the cost per million dollars
of coverage of the insurance of the same type actually obtained by Columbia,
the City may (unless Columbia has elected to self-insure, in compliance with
this Agreement, the risk in question) at Columbia’s cost and expense procure
and maintain such insurance, which shall be issued in Columbia’s name and
otherwise comply with all applicable requirements of this Agreement.

 

Section 2.05.7. Waiver of Certain Claims. To the
extent that the City or Columbia purchases any hazard insurance relating to the
Casino Support Facilities, the party purchasing such insurance shall attempt to
cause the insurance carrier to agree to a Waiver of Subrogation, as defined. If
any insurance policy cannot be obtained with a Waiver of Subrogation, or a
Waiver of Subrogation is obtainable only by the payment of an additional
premium, then the party undertaking to obtain the insurance shall give notice
of such fact to the other party. The other party shall then have ten (10) business
days after receipt of such written notice either to place the insurance with a
company that is reasonably satisfactory to the other party and that will issue
the insurance with a Waiver of Subrogation at no additional cost, or to agree
to pay the additional premium if such a policy can be obtained only at
additional cost. To the extent that the parties actually obtain insurance with
a Waiver of Subrogation, the parties release each other, and their respective
authorized representatives, from any claims for damage to any person, the
Casino Support Facilities, that are caused by or result from risks insured
against under such insurance policies, but only to the extent of the available
insurance proceeds.

 

Section 2.05.8. No Representation of Adequate
Coverage. Neither party makes any representation, or shall be deemed to
have made any representation, that the limits, scope, or form of insurance
coverage specified in this Section 2.05 are adequate or sufficient.

 

11

 

Section 2.06. Damage or Destruction.

 

Section 2.06.1. Notice; No Payment Abatement.
Columbia shall promptly give the City written notice of any Casualty, as
defined. The monthly Fixed Amount and the Percentage Amount to be paid by
Columbia during the period operations are completely or partially closed due to
Casualty shall be the average monthly payment adjusted by the CPI of the Fixed
Amount and Percentage Amount paid by Columbia during the twelve (12) month
period preceding the complete or partial closing of operations in lieu of the
Fixed Amount or Percentage Amount actually earned during such period, unless
the amount actually earned is greater than the amount calculated in accordance
with the above procedure. Columbia shall, at its election (subject to the terms
of any applicable mortgages), either: (a) with reasonable promptness
restore the damaged improvements as nearly as may be practicable to their
condition, quality, and class immediately prior to such Casualty, with such
changes or alterations (including demolition) as Columbia shall elect to make
in conformity with this Agreement; or (b) terminate this Agreement, by at
least thirty (30) days advance notice to the City, in which event the
Casino Support Facilities and Shoreside Facilities Sites shall revert to the
City, and assign to the City all of Columbia’s rights with respect to insurance
proceeds arising from the Casualty. In the event Columbia elects “b,” Columbia
shall remain liable for the payment of a termination fee calculated in
accordance with the procedure set forth in Section 7.01. Columbia’s
election to terminate under “b” shall not be effective unless joined in by all
mortgagee(s) whose mortgage(s) grant them the power to withhold
consent to such termination. If Columbia elects “b,” then the City shall have
the right, by notice to Columbia within ten (10) business days after
receipt of Columbia’s notice, to require Columbia to cause the remaining
improvements to be demolished and the debris removed, so that the Shoreside
Facilities Sites are returned to the City as vacant and level land. The parties
shall cooperate to make available the insurance proceeds for such demolition
work, which Columbia shall perform with reasonable promptness but the
completion of which shall not be a condition to termination of this Agreement
and the reversion of the Shoreside Facilities Sites to the City. Any remaining
insurance proceeds after performance of such demolition work shall belong to
the City.

 

In the event the
buildings, structures, improvements and equipment were insured for less than
80 percent (80%) of their replacement value, Columbia shall fund the
difference between the actual insurance proceeds received and the amount that
would have been received had the buildings, structures, improvements and
equipment been insured for 80 percent (80%) of their replacement value.

 

Section 2.06.2. Adjustment of Claims; Use of
Insurance Proceeds. Columbia shall be solely responsible for the adjustment
of any insurance claim, except that, to the extent permitted by any mortgage,
each mortgagee is expressly authorized and empowered to participate in any
settlements, adjustments, arbitrations or proceedings with respect to any
insurance claim. All proceeds of casualty or hazard insurance shall be paid to
Columbia, subject to rights of mortgagees.

 

Section 2.06.3
Depository. Upon
request by any mortgagee (subject to the terms of the applicable mortgage), all
proceeds in excess of ONE MILLION DOLLARS AND 00/100

 

12

 

(1,000,000) of casualty
insurance permitted by the mortgage to be applied by Columbia to rebuild,
restore or repair the Casino Support Facilities shall be deposited with an
institutional lender designated by Columbia and the mortgagee, to be disbursed
in accordance with mortgage(s) for the repair, restoration or
reconstruction of the Casino Support Facilities.

 

Section 2.07. Quiet Enjoyment. The City
covenants that, so long as the City is not entitled to the reversion of the
Shoreside Facilities Sites on account of an Event of Default, as defined, or
termination by Columbia, Columbia shall and may peaceably and quietly have,
hold and enjoy the Shoreside Facilities Sites and the Casino Support Facilities
without molestation or disturbance by or from the City or anyone claiming by or
through the City.

 

ARTICLE 3

CITY GARAGES

 

Section 3.01. City Garages. Columbia shall
have the right to make such alterations to the City Garages as it deems
appropriate (i) to permit access to the Hotel and Casino Support
Facilities; and (ii) to improve their efficiency; provided, however,
Columbia shall obtain the approval of the City prior to making any structural
alterations to the City Garages. The City’s approval of such structural
alterations shall not be unreasonably delayed or withheld.

 

The City hereby approves
and agrees to permit Columbia to make new entrances from the City Garages
directly on to the public alley behind the City Garages which comprise part of
Tracts 35 and 38.

 

The City hereby agrees to
permit Columbia to construct additional levels of parking on top of the
existing City Garages provided that such additional levels can be safely added
without adversely affecting the structural integrity of the existing City
Garages.

 

Columbia agrees at all
times to permit public access to the City Garages for parking. The parking fee
charged, if any, by Columbia for use of the City Garages shall be the same to
all customers.

 

Columbia agrees to
allocate 75 (seventy five) parking spaces in a designated area selected by
Columbia in the City Garages to the City for use by the merchants along
Washington Street and employees of the City Monday through Saturday from 7 A.M.
to 7 P.M. Said individuals shall be charged at a rate established by the
City.

 

ARTICLE 4

INITIAL RIVERBOAT CASINO

 

Section 4.01. Initial Riverboat Casino. After
the Transfer Date, Columbia shall operate and maintain a riverboat casino
containing approximately 20,000 square feet of casino space and

 

13

 

approximately 900 gaming
positions, which will be docked or moored in and connected with the Casino
Support Facilities.

 

At no time shall the
Riverboat Casino, a Second Riverboat Casino, as hereinafter defined, or
substitute riverboat casino be considered the property of the City. The City
hereby agrees that it shall have no right, title or interest in the Riverboat
Casino, a Second Riverboat Casino or substitute riverboat casino. All benefits
and burdens of ownership of the Riverboat Casino, a Second Riverboat Casino or
substitute riverboat casino (except for City’s right to a percentage of the
revenues generated by the Riverboat Casino, a Second Riverboat Casino or
substitute riverboat casino while docked at the Casino Support Facilities)
shall be and remain with Columbia. Columbia or a Columbia’s affiliate(s) shall
have the unrestricted right to obtain financing by granting lenders a mortgage
or security interest in the Riverboat Casino, a Second Riverboat Casino or
substitute riverboat casino; the equipment and supplies located on the
Riverboat Casino, a Second Riverboat Casino or substitute riverboat casino; and
the income and revenues generated by the Riverboat Casino, a Second Riverboat
Casino or substitute riverboat casino (except any interest in such income and
revenue shall be subject to the City’s right to receive a percentage of the
revenues generated by the Riverboat Casino, a Second Riverboat Casino or
substitute riverboat casino while docked at the Casino Support Facilities).
Columbia may, from time to time, substitute a different riverboat casino from
the original Riverboat Casino or Second Riverboat Casino constructed for the
Casino Support Facilities; provided that the substitute riverboat casino
contains at least the same number of gaming positions and complies with the
same exterior design requirements described above.

 

ARTICLE 5

ADDITIONAL COLUMBIA RIVERBOAT CASINO

 

Section 5.01. Additional Columbia Riverboat Casino.
Upon the Transfer Date, the City shall re-convey to Columbia’s fee simple
title, subject to the City’s reversionary interest in said property, that
certain additional 450 feet of Tract 63 along the floodwall as generally
depicted on Exhibit “A” which property shall be adjacent to that certain
waterfront property defined as Tract 63 herein, on which the Riverboat Casino
will be docked. Said additional 450 feet of waterfront property shall be
referred to as the “Second Riverboat Property.” Columbia, at its expense, shall
obtain, prior to the Transfer Date, a survey of the Second Riverboat Property
and a legal description of the Second Riverboat Property.

 

(NOTE: PLEASE SEE
DEFINITIONS SECTION FOR SECOND RIVERBOAT CASINO-PARAGRAPH WAS MOVED NOT
OMITTED)

 

On the Transfer Date,
Columbia shall lease the Second Riverboat Property back to the City for a
rental payment of ONE DOLLAR AND 00/100 ($1.00) per year. The City shall have
the right to use the Second Riverboat Property in the manner it was being used
as of the Effective Date.

 

14

 

At such time as Columbia
decides to operate a Second Riverboat Casino, it shall have the right, upon one
hundred twenty (120) days notice to the City, to terminate the City’s
lease. Upon the substantial completion and opening of the Second Riverboat
Casino, Columbia shall pay the City FOUR HUNDRED FIFTY THOUSAND DOLLARS AND
00/100 ($450,000), adjusted by the CPI, with the base year being the calendar
year in which the Casino Opening Date occurs plus 1.5 percent (1.5%) of
the Second Riverboat Casino’s Net Revenues.

 

Prior to commencing the
construction of the mooring and docking facility for the Second Riverboat
Casino, Columbia shall, at its expense, on land owned by the City at the northern
end of the Second Riverboat Property, construct, if the City so desires, a
similar docking, mooring and landing structure as existed as of the Effective
Date on the Second Riverboat Property to be used by the various passenger
riverboats which periodically stop at the City of Vicksburg and the general
public. The City and the general public shall have access through the floodwall
at some point to such new docking and mooring structure.

 

The facilities
constructed on the Second Riverboat Property shall be included in the
definition of Casino Support Facilities and the Second Riverboat Property shall
be considered part of the Shoreside Facilities Sites.

 

ARTICLE 6

CASINO DEVELOPMENT RESTRICTION ON THIRD PARTIES

 

Section 6.01. Casino Development Restriction on
Third Parties. So long as Columbia has title to the Shoreside Facilities
Sites, the City shall restrict the use of all property in Warren County,
Mississippi, that is owned or hereafter acquired by the City and is capable of
being used for a riverboat casino operation or riverboat casino support
facilities according to the Mississippi Gaming Control Act of 1990, as amended,
and the Regulations of the Mississippi Gaming Commission, as amended,
including, but not limited to the property which adjoins the water of the
Mississippi River or adjoins the water of the Yazoo Diversion Canal, so that
such property shall not be used for the development or operation of a new
casino or its infrastructure/land-based support facilities as required by the
Mississippi Gaming Commission Regulation II.A., Section 3(h), without
the prior written approval of Columbia. There is no restriction on the
utilization of city-owned or leased property for improvements associated with a
particular new riverboat casino operation after that particular new riverboat
casino operation has met its infrastructure/land-based obligations pursuant to
Mississippi Gaming Commission Regulation II.A., Section 3(h).

 

On the Transfer Date, the
City shall record in the land registry for Warren County a deed restriction on
all property owned by the City in Warren County capable of being used for a
riverboat casino operation according to the laws of the state of Mississippi.

 

15

 

In the event the City
acquires additional property after the Transfer Date, capable of being used for
a riverboat casino operation according to the laws of the state of Mississippi,
the City shall record a similar deed restriction on such property as that
referred to above.

 

The City agrees, in its
municipal capacity and in its capacity as a private landowner, not to sell,
abandon or vacate that portion of South Street west of Levee Street and agrees
not to permit any other casino operator to use any portion of the riparian
rights associated with South Street for a riverboat casino.

 

In the event the laws of
the state of Mississippi are changed so as to permit land-based casinos and the
City has property it intends to sell or lease for a land-based casino
operation, Columbia shall be given the first right of refusal to acquire said
property at the price and on the terms offered to interested third parties.

 

ARTICLE 7

TERMINATION FEE

 

Section 7.01. Termination Fee. Columbia shall
have the right, upon twelve (12) months notice to the City, to permanently
cease its casino operations and remove the Riverboat Casino, a substitute
riverboat or the Second Riverboat Casino from the Casino Support Facilities.

 

Twelve (12) months
from the date the City receives Columbia’s notice that it is permanently
ceasing its casino operations, the Shoreside Facilities Sites and the Casino
Support Facilities (specifically excluding the Hotel, the Hotel Site the
Riverboat Casino, Second Riverboat Casino and any substitute riverboat casino
and all personal property located on the Shoreside Facilities Sites or in the
Casino Support Facilities or in the Hotel or on the Hotel Site, Riverboat
Casino, Second Riverboat Casino and any substitute riverboat casino) shall
revert to the City, without charge to the City, free and clear of any liens or
mortgages.

 

At the time of
termination, Columbia shall pay the City a termination fee of FOUR HUNDRED
FIFTY THOUSAND DOLLARS AND 00/100 ($450,000), as adjusted by the CPI through
the year of termination using the Casino Opening Date as the base year, for
each year and a prorata amount for any partial year remaining at the time of
termination in the period commencing from the Transfer Date to ten (10) years
after the Transfer Date. In the event notice is given twelve (12) months
prior to the tenth (10th) year after the Transfer Date, no
termination fee shall be paid if the termination occurs at the expiration of
the tenth (10th) year after the Transfer Date.

 

If the termination occurs
during the years eleven (11) through fifteen (15) from the Transfer
Date, the termination fee shall be FOUR HUNDRED FIFTY THOUSAND DOLLARS AND
00/100 ($450,000), as adjusted by the CPI through the year of termination using
the Casino Opening Date as the base year, for each year and a prorata amount
for any partial year remaining in the period commencing from year eleven
(11) from the Transfer Date to year fifteen (15) from

 

16

 

the Transfer Date. In the
event notice is given twelve (12) months prior to the fifteenth (15th) year after the Transfer Date, no termination fee
shall be paid of the termination occurs at the expiration of the fifteenth (15th) year after the Transfer Date.

 

If the termination occurs
during the years sixteen (16) through twenty (20) from the Transfer
Date, the termination fee shall be FOUR HUNDRED FIFTY THOUSAND DOLLARS AND
00/100 ($450,000), as adjusted by the CPI through the year of termination using
the Casino Opening Date as the base year, for each year and a prorata amount
for any partial year remaining in the period commencing from year sixteen
(16) from the Transfer Date to year twenty (20) from the Transfer
Date. In the event notice is given twelve (12 months prior to the
twentieth (20th) year after the Transfer Date, no
termination fee shall be paid if the termination occurs at the expiration of
the twentieth (20th) year after the Transfer Date.

 

If the termination occurs
during the years twenty-one (21) through twenty-five (25) from the
Transfer Date, the termination fee shall be FOUR HUNDRED FIFTY THOUSAND DOLLARS
AND 00/100 ($450,000), as adjusted by the CPI through the year of termination
using the Casino Opening Date as the base year, for each year and a prorata
amount for any partial year remaining in the period commencing from year
twenty-one (21) from the Transfer Date to year twenty-five (25) from
the Closing. In the event notice is given twelve (12) months prior to the
twenty-fifth (25th) year after the Transfer Date, no
termination fee shall be paid if the termination occurs at the expiration of
the twenty-fifth (25th) year after the Transfer Date.

 

If the termination occurs
during the years twenty-six (26) through thirty (30) from the Transfer
Date, the termination fee shall be FOUR HUNDRED FIFTY THOUSAND DOLLARS AND
00/100 ($450,000), as adjusted by the CPI through the year of termination using
the Casino Opening Date as the base year, for each year and a prorata amount
for any partial year remaining in the period commencing from year twenty-six
(26) from the Transfer Date to year thirty (30) from the Transfer
Date. In the event notice is given twelve (12) months prior to the
thirtieth (30th) year after the Transfer Date, no termination fee shall be paid
if the termination occurs at the expiration of the thirtieth (30th) year after the Transfer Date.

 

After Columbia makes the
appropriate termination payment and delivers the Casino Support Facilities and
Shoreside Facilities Sites to the City, neither party shall have any further
obligations or liabilities one to the other pursuant to the provisions of this
Agreement, except for the obligations set forth in Sections 1.01.4 and
1.01.5.

 

Upon such termination,
Columbia shall have the right to remove the Riverboat Casino, any substitute
riverboat casino and the Second Riverboat Casino, if any, without any form of
compensation to the City other than the termination fee described above,
provided, however, if Columbia damages the Casino Support Facilities during
such removal process, it shall be obligated to restore the Casino Support
Facilities to their existing condition prior to such removal.

 

17

 

Section 7.02. Permanent Removal of Second
Riverboat Casino But First Riverboat Casino Remains in Operation. Columbia
shall have the right, at any time after it terminates the lease with the City
and commences operation of the Second Riverboat Casino on the Second Riverboat
Property, to notify the City that it has elected to permanently cease its
Second Riverboat Casino operations. In such event, Columbia shall remove the
Second Riverboat Casino from the facilities constructed on the Second Riverboat
Property, and the Second Riverboat Property and the improvements thereon shall
revert back to the City without charge to the City. Columbia shall have the
right to continue its ownership of and use of the remainder of the Shoreside
Facilities Sites and Casino Support Facilities for the first Riverboat Casino.
In such event, Columbia shall not be obligated to pay a termination fee. In
such event, the Fixed Amount and the Percentage Amount shall be calculated on
the basis of the Net Revenues generated from the remaining Riverboat Casino.

 

ARTICLE 8

EMPLOYMENT IN LOCAL
COMMUNITY

 

Section 8.01. Employment in Local Community.
Columbia agrees, in good faith, to seek to employ in its operations, at all
levels, individuals living in the City of Vicksburg from the various gender,
racial and ethnic backgrounds found in the City of Vicksburg. Columbia also
agrees to actively recruit handicapped persons in the City of Vicksburg to be
included among its employees. Columbia further agrees, in good faith, to
contract with local vendors of various gender, racial and ethnic backgrounds
living and doing business in the City of Vicksburg to the extent possible and
insofar as service availability, cost competitiveness and service quality will
allow. Moreover, Columbia agrees to provide training in the City of Vicksburg
for individuals to be employed in Columbia’s Hotel, Casino Support Facilities
and Riverboat Casino operations.

 

ARTICLE 9

CITY’S
REVERSIONARY INTEREST

IN SHORESIDE
FACILITIES SITES

 

Section 9.01. City’s Reversionary Interest.
Fee simple title to the Shoreside Facilities Sites and improvements thereon,
including all Casino Support Facilities (specifically excluding the Hotel,
Hotel Site, the Riverboat Casino, Second Riverboat Casino and any substitute
riverboat casino and all personal property located on the Shoreside Facilities
Sites or in the Casino Support Facilities or in or on the Hotel, Hotel Site,
Riverboat Casino, Second Riverboat Casino and any substitute riverboat casino)
shall automatically revert back to the City thirty (30) years from the Transfer
Date, unless said property has reverted back to the City prior to such date in
accordance with the provisions of this Agreement. Upon the occurrence of the
reversion of title to the Shoreside Facilities Sites to the City, Columbia will
promptly execute such instruments reasonably requested by the City to evidence
that the reversion has, in fact, occurred.

 

Section 9.02. Exchange of Deeds. On the
Transfer Date, Columbia shall transfer fee simple title to the Shoreside
Facilities Sites to the City, and the City shall immediately thereafter

 

18

 

transfer fee simple title
to the Shoreside Facilities Sites which shall include the thirty (30) year
reversion as described in Section 9.01, back to Columbia. The City will
promptly execute such instruments reasonably requested by Columbia to ensure
that the reversion of the Shoreside Facilities Sites occurs no earlier than
thirty (30) years from the Transfer Date, unless said property has
reverted back to the City prior to such date in accordance with the provisions
of this Agreement.

 

ARTICLE 10

CLAUSES TO ENSURE
MORTGAGE ABILITY

OF THE SHORESIDE
FACILITIES SITES

 

Section 10.01. Rights to Mortgage Shoreside
Facilities Sites. Columbia and its successors in title shall have the
absolute and unconditional right to mortgage at any time and from time to time
the Shoreside Facilities Sites, without the consent of the City, but any
mortgagees’ interest shall be subject to the City’s reversionary interest
described in Section 9.01 and elsewhere in this Agreement

 

Section 10.02. Estoppel Certificates.

 

Section 10.02.1. Rights of Each Party. At any
time and from time to time, upon not less than fifteen (15) business days
prior written request (an “Estoppel Certificate Request”) by either party to this
Agreement (the “Requesting Party”), the other party to this Agreement (the “Certifying
Party”) shall execute, acknowledge and deliver to the Requesting Party (or
directly to a third party whose name and address are provided by the requesting
party (a ‘Third Party”)) up to four (4) original counterparts of an
estoppel certificate. An Estoppel Certificate Request shall not be valid unless
accompanied by: (a) up to four (4) counterparts of a proposed form of
estoppel certificate reflecting present facts and circumstances at the time of
the Estoppel Certificate Request; and (b) a certificate by the Requesting
Party that to the best of the Requesting Party’s knowledge the proposed form of
estoppel certificate is substantially correct and omits no material information
required to be disclosed in such estoppel certificate. Any estoppel certificate
may be relied upon by any Third Party to whom an estoppel certificate is
required to be directed.

 

Section 10.02.2. Failure to Execute Estoppel
Certificate. If (i) the Requesting Party delivers an Estoppel
Certificate Request to the Certifying Party in accordance with the notice
provisions of this Agreement and (ii) fifteen (15) business days have
elapsed from the effectiveness of such Estoppel Certificate Request and during
such period the Certifying Party has failed to execute and deliver to the
Requesting Party (or its attorneys or the Third Party(ies)

 

19

 

designated by such
Requesting Party) the Requesting Party shall deliver a second written notice to
the Certifying Party which states that if the Certifying Party does not respond
within ten (10) days, the Certifying Party shall be deemed for all
purposes, whether this Agreement has been terminated or is otherwise in full
force and effect, to have executed and delivered to the Third Party and the
Requesting Party an estoppel certificate, dated as of the effective date of the
Estoppel Certificate Request, in the form submitted by the Requesting Party to
the Certifying Party.

 

Section 10.02.3. Delivery of Estoppel Certificates.
Any Requesting Party may request that the Certifying Party execute an undated
estoppel certificate; such request shall contain the Requesting Party’s
expected date on which the estoppel certificate will be dated. If the
Requesting Party makes such request, then in place of delivering the undated
estoppel certificate to the Requesting Party or any Third Party, the Certifying
Party shall deliver the undated estoppel certificate to the Requesting Party’s escrow
agent, who shall hold the undated estoppel certificate in accordance with the
following provisions. If the Certifying Party gives notice to the Requesting
Party’s escrow agent that the estoppel certificate is no longer correct, then
the Requesting Party’s escrow agent shall return the estoppel certificate to
the Certifying Party, who shall, within five (5) business days, execute a
corrected undated estoppel certificate and redeliver it to the Requesting Party’s
escrow agent. At any time when the Requesting Party’s escrow agent is holding
an undated estoppel certificate and has not received notice from the Certifying
Party that such estoppel certificate is incorrect, the Requesting Party shall
be entitled to instruct its escrow agent to date the estoppel certificate as of
the then-current date and deliver it to the Requesting Party or a Third Party.
The Requesting Party’s escrow agent shall promptly comply with such request.
The Requesting Party shall be entitled to designate any title insurance company
or abstract company licensed in the state of Mississippi to take the actions to
be taken by the Requesting Party’s escrow agent pursuant to this paragraph.

 

If requested by the
Requesting Party’s escrow agent or such title insurance company or abstract company,
the Requesting Party and the Certifying Party shall enter into an escrow
agreement, on customary terms, to further implement the provisions of this
paragraph.

 

Section 10.03. Event of Default.

 

Section 10.03.1. Monetary Default. If a monetary
default shall occur and the monetary default shall continue for fifteen
(15) days after the City has given Columbia notice of such monetary
default, specifying in reasonable detail the amount of money required to be
paid by Columbia and the nature of such payment.

 

Section 10.03.2. Non-Monetary Default. If a
non-monetary default shall occur and the non-monetary default shall continue
and not be remedied by Columbia within sixty (60) days after the City
shall have delivered to Columbia a notice describing the same in reasonable
detail, or, in the case of a non-monetary default that cannot with due
diligence be cured within sixty (60) days from such notice, if Columbia shall
not: (a) within sixty (60) days from the City’s

 

20

 

notice advise the City of
Columbia’s intention to take all reasonable steps necessary to remedy such
non-monetary default; (b) duly commence the cure of such non-monetary
default within such period, and then diligently prosecute to completion the remedy
of the non-monetary default; and (c) complete such remedy within a
reasonable time under the circumstances.

 

Section 10.03.3. Remedies. Upon occurrence of a
monetary Event of Default, as described in Section 10.03.1, the City may
give Columbia notice of intention to obtain the reversion of the Shoreside
Facilities Sites to the City at the expiration of twenty (20) days from
the date of service of such notice of intention. Upon the expiration of such
twenty (20) day period, unless Columbia shall have cured the monetary
Event of Default that gave rise to such notice, fee simple title to the
Shoreside Facilities Sites and the Casino Support Facilities located on the
Shoreside Facilities Sites shall revert to the City and the City shall take
possession of the Shoreside Facilities Sites and Casino Support Facilities
(specifically excluding the personal property located on the Shoreside
Facilities Sites or in the Casino Support Facilities; the Riverboat Casino, the
Second Riverboat Casino and any substitute riverboat Casino; and all personal
property located on said riverboats), and the City shall be entitled to the
termination fee calculated in accordance with Section 7.01 for the
remainder of the applicable period. Columbia shall, at its expense, on or before
sixty (60) days after the Shoreside Facilities Sites and Casino Support
Facilities revert to the City, remove the Riverboat Casino, the Second
Riverboat Casino, if any, or any substitute riverboat casino from the Casino
Support Facilities and Shoreside Facilities Sites.

 

Upon occurrence of a
non-monetary Event of Default, as described in Section 10.03.2, the City
may give Columbia a notice of intention to obtain the reversion of the
Shoreside Facilities Sites to the City at the expiration of thirty (30) days
from the date of service of such notice of intention. Upon the expiration of
such thirty (30) day period, unless Columbia shall have (i) completely
cured the non-monetary Event of Default that gave rise to such notice; or (ii) commenced
to cure such non-monetary Event of Default that gave rise to such notice and is
diligently pursuing completion of such remedy of the non-monetary Event of
Default, fee simple title to the Shoreside Facilities Sites and the Casino
Support Facilities located on the Shoreside Facilities shall revert to the
City, and the City shall take possession of the Shoreside Facilities Sites and
Casino Support Facilities (specifically excluding the personal property located
on the Shoreside Facilities Sites or in the Casino Support Facilities; the
Riverboat Casino, the Second Riverboat Casino and any substitute riverboat
casino; and all personal property located on said riverboats), and the City
shall be entitled to the termination fee calculated in accordance with Section 7.01
for the remainder of the applicable period. Columbia shall, at its expense, on
or before sixty (60) days after the Shoreside Facilities Sites and Casino
Support Facilities revert to the City, remove the Riverboat Casino, the Second
Riverboat Casino, if any, or any substitute riverboat casino from the Casino
Support Facilities and Shoreside Facilities Sites.

 

Section 10.03.4. Pending Dispute Regarding Event of
Default. Notwithstanding anything to the contrary in the foregoing remedies
provided for the City under this Agreement, if Columbia shall have given the
City notice prior to the fee simple title to the Shoreside Facilities

 

21

 

Sites reverting to the
City, that Columbia contests the City’s determination that an Event of Default
has occurred and specified in detail all reasons for such contest, then the
City shall not disturb Columbia’s title or possession of the Shoreside
Facilities Sites, Columbia shall be entitled to remain in possession of the
Shoreside Facilities Sites, so long as: (a) Columbia continues to pay the
City the Fixed Amount and Percentage Amount provided for in this Agreement and
continues to perform such other obligations under this Agreement as are not in
dispute; and (b) Columbia is prosecuting appropriate judicial proceedings
to prevent the Shoreside Facilities Sites from reverting back to the City.

 

Section 10.04. In the Event Columbia Temporarily
Ceases to Operate the Casino Support Facilities or the Riverboat Casino. It
shall not be an Event of Default under this Agreement as it relates to the
Shoreside Facilities Sites if Columbia from time to time temporarily ceases
operation of the Riverboat Casino or the Second Riverboat Casino, or a
substitute riverboat casino or the Casino Support Facilities provided that: (i) Columbia
makes, in lieu of the actual Fixed Amount and Percentage Amount due based on
the formulas set forth in Section 1.01, a monetary payment to the City for
each month said operations are closed equal to the average monthly payment
adjusted by the CPI of the Fixed Amount and Percentage Amount paid by Columbia
during the twelve (12) month period preceding the closing of the Riverboat
Casino or Second Riverboat Casino, or a substitute riverboat casino or the
Casino Support Facilities; and (ii) said temporary closure is for a period
of twelve (12) consecutive months or less. Columbia shall deliver to the
City written notice of any temporary cessation in the operations of the
Riverboat Casino or the Second Riverboat Casino, or a substitute riverboat
casino or the Casino Support Facilities within fifteen (15) days after
such temporary cessation of operations commences and such notice shall contain
the reasons for the temporary cessation of operations and the expected
reopening date.

 

A closure of an area in
the Casino Support Facilities or on the Riverboat Casino, Second Riverboat
Casino or a substitute riverboat casino for refurbishment or remodeling or
change of use shall not constitute a closure for purposes of this Section 10.04,
and Columbia shall continue to pay the Fixed Amount and Percentage Amount due
in accordance with the formulas set forth in Section 1.01.

 

Notwithstanding the
above, if the reason the Casino Support Facilities, Riverboat Casino, Second
Riverboat Casino or substitute riverboat casino ceases operations is because of
an event of Force Majeure or Casualty, the twelve (12) month period shall
not apply provided that Columbia recommences operation as soon as such
operations can be commenced without jeopardizing said facilities; Columbia’s
employees or the public. During the period said facilities are closed because
of an event of Force Majeure or Casualty, Columbia shall make the Fixed Amount
and Percentage Amount payments described in the first paragraph of this Section.

 

22

 

Section 10.05. Other Mortgagee Protection
Provisions.

 

Section 10.05.1. Modifications Required by Mortgagee.
If any mortgagee or prospective mortgagee shall require any modification(s) of
this Agreement after Closing (including clarifications and supplementations to
Mortgagee’s Cure Rights), then the City shall, at Columbia’s request, promptly
execute and deliver to Columbia such instruments in recordable form effecting
such modification(s) as such mortgagee or prospective mortgagee shall
require, provided that such modification(s): (i) do not adversely affect
any of the City’s rights or materially increase any of the City’s obligations
under this Agreement; (ii) are consistent with the customary requirements
of institutional lenders at the time in the state of Mississippi, or are
required by banking, insurance or similar laws and regulations; and (iii) can
be legally agreed to by the City.

 

Section 10.05.2. Initial Notice. If Columbia
enters into any mortgage(s), then the mortgagee(s) thereunder shall be
entitled to the mortgagee protections provided for under this Agreement only
from and after such time as Columbia or such mortgagee has either (or both): (a) given
the City notice of the name and address of such mortgagee, accompanied by a
copy of the executed mortgage; or (b) recorded or caused to be recorded an
instrument giving notice of such mortgage and the name and address of the
mortgagee.

 

Any mortgagee shall be
free to change its name and address from time to time by notice to the City. In
the event of a change of name, such notice may be provided either by the
original mortgagee or by the mortgagee under its new name, without proof of any
kind confirming the change of name. Notice of any change of a mortgagee’s
identity or address, or of a transfer of a mortgage, may be made by any means
permitted for the original notice of the mortgagee’s original name and address.

 

Section 10.05.3. Termination of Mortgagee’s Rights.
If a mortgagee is entitled to the mortgagee protections provided for under this
Agreement, then such entitlement shall not terminate unless and until such
time, if any, as the mortgagee shall have been satisfied and discharged of
record.

 

Section 10.05.4. Cancellation, Surrender, Amendment,
Etc. No voluntary (i) cancellation; (ii) termination; (iii) surrender,
acceptance of surrender, (iv) abandonment; (v) amendment; (vi) modification
of this Agreement; or (vii) the reversion of the Shoreside Facilities
Sites shall occur without the prior consent of such mortgagee.

 

Section 10.05.5. Copies of Notices. If the City
shall give any notice to Columbia, then the City shall at the same time and by
the same means give a copy of such notice to each mortgagee. No notice to
Columbia shall be effective unless and until so given to each mortgagee. No
Event of Default predicated upon the giving of notice to Columbia shall be
deemed to have occurred unless like notice shall have been so given to each
mortgagee at the same time and by the same means, which notice shall describe
in reasonable detail the alleged Event of Default.

 

23

 

Section 10.05.6. Columbia’s Cure Period Expiration
Notice. If Columbia is in default under this Agreement as it relates to the
Shoreside Facilities Sites, and the cure period applicable to Columbia expires
without cure of Columbia’s default, then the City shall promptly give notice of
such fact to each mortgagee, which notice shall describe in reasonable detail
Columbia’s default (a “Columbia Cure Period Expiration Notice”).

 

Section 10.05.7. Right to Perform Covenants and
Agreements. Any mortgagee shall have the right, but not the obligation to
perform any obligation of Columbia under this Agreement and to remedy any
default by Columbia. The City shall accept performance by or at the instigation
of a mortgagee in fulfillment of Columbia’s obligations, for the account of
Columbia and with the same force and effect as if performed by Columbia. No
such performance by a mortgagee shall cause such mortgagee to become a “mortgagee
in possession” or otherwise cause such mortgagee to be deemed to be in
possession of the Shoreside Facilities Sites or bound by this Agreement.

 

Section 10.05.8. Transfer of Columbia’s Rights.
Columbia may delegate or otherwise transfer to a mortgagee any or all of
Columbia’s rights under this Agreement, but no such delegation or transfer
shall bind the City unless and until the City shall have received a copy of a
written instrument effecting such delegation accompanied by a photocopy of the
mortgagee’s fully-executed mortgage. Such delegation or transfer of authority
may be effected by the terms of the mortgage itself, in which case service upon
the City of an executed counterpart of certified copy of such mortgage,
together with a written notice specifying the provisions of such mortgage that
delegate or transfer such authority to the mortgagee, shall be sufficient to
bind the City to such delegation or transfer of rights.

 

Section 10.05.9. Notice of Default and Mortgagee’s
Cure Rights. Upon receiving any notice of default, any mortgagees shall
have the same cure period granted to Columbia under this Agreement, plus the
additional time provided for below, within which to take (if such mortgagee so
elects) whichever of the actions set forth below shall apply with respect to
the default described in such notice of default (such actions, “Mortgagee’s
Cure”; and, a mortgagee’s rights to take such actions, “Mortgagee’s Cure Rights”):

 

In the case of a monetary
default, or a non-monetary default that a mortgagee is reasonably capable of
curing (without obtaining possession of the Shoreside Facilities Sites) within
the cure period allowed to Columbia under this Agreement, mortgagee shall be
entitled (but not required) to cure such default within a cure period
consisting of Columbia’s cure period under this Agreement extended through the
date thirty (30) days after such mortgagee shall have received Columbia’s
Cure Period Expiration Notice as to such default. If the amount of any monetary
default has not been finally determined (for example, if a dispute has arisen
between the City and Columbia regarding the proper amount of the Percentage
Amount), then in place of curing of such monetary default a mortgagee shall be
entitled instead to (a) cure such monetary default to the extent the
amount hereof is not in dispute; and (b) undertake in writing that such
mortgagee shall cure the remaining disputed portion of such monetary default
within thirty (30)

 

24

 

days after the dispute
shall have been resolved (and the parties shall then cooperate to resolve such
dispute promptly in accordance with this Agreement).

 

In the case of any other
non-monetary default (other than a non-monetary default that is not reasonably
susceptible of being cured by a mortgagee without having possession of the
Shoreside Facilities Sites), mortgagee shall be entitled, but not required, to (x) within
a period consisting of Columbia’s cure period for the default, extended through
the date forty-five (45) days after receipt of Columbia’s Cure Period
Expiration Notice as to such default, advise the City of mortgagee’s intention
to take all reasonable steps necessary to remedy such non-monetary default; (y) duly
commence the cure of such non-monetary default within such extended period, and
thereafter diligently prosecute to completion the remedy of such nonmonetary
default, subject to events of Force Majeure; and (z) complete such remedy
within a reasonable time under the circumstances.

 

In the case of a
non-monetary default that is not reasonably susceptible of being cured by a
mortgagee without obtaining possession of the Shoreside Facilities Sites
(including failure to complete the Casino Support Facilities), mortgagee shall
be entitled (but not required) to do the following, so long as, with respect to
any defaults other than those referred to in this paragraph, such mortgagee has
exercised or is exercising the applicable Mortgagee’s Cure Rights as defined
above:

 

At any time during the
cure period (if any) that applies to Columbia, extended through the date
forty-five (45) days after such mortgagee’s receipt of the Columbia’s Cure
Period Expiration Notice as to such default, or if no cure period applies to
Columbia, then within forty-five (45) days after receiving notice of the
non-monetary default, mortgagee shall be entitled to institute proceedings, and
(subject to any stay in any proceedings involving the bankruptcy, insolvency,
or reorganization of Columbia or the like, or any injunction, unless such stay
or injunction is lifted), diligently prosecute the same to completion subject
to Force Majeure, to obtain possession of the Shoreside Facilities Sites as
mortgagee (including possession by the receiver), or acquire the fee simple
estate of Columbia subject to the City’s reversionary right by foreclosure
proceedings or otherwise, including delivery of an assignment in lieu of
foreclosure (the obtaining of such possession or the completion of such
acquisition, “Control of the Shoreside Facilities Sites”).

 

Upon obtaining Control of
the Shoreside Facilities Sites (before or after expiration of any otherwise
applicable cure period), mortgagee shall be entitled (but not required) to
proceed with reasonable diligence and reasonable continuity to cure such
non-monetary defaults as are then reasonably susceptible of being cured by such
mortgagee (excluding personal defaults of Columbia, which mortgagee shall not
be required to cure), subject to Force Majeure.

 

Section 10.05.10. Effect of Cure. A mortgagee
shall not be required to continue to exercise Mortgagee’s Cure Rights or
otherwise proceed to obtain or to exercise Control of the

 

25

 

Shoreside Facilities
Sites if and when the default that such mortgagee was attempting to cure shall
have been cured. Upon such cure and the cure of any other defaults in
accordance with this Agreement, this Agreement shall continue in full force and
effect as if no default(s) had occurred, and Columbia shall retain fee
simple title to the Shoreside Facilities Sites subject to the City’s
reversionary interest.

 

Section 10.05.11. Quiet Enjoyment. So long as the
time period for a mortgagee to exercise Mortgagee’s Cure Rights with respect to
a non-monetary default by Columbia has not expired (and provided that all
monetary defaults are cured within mortgagee’s cure period provided for under
this Agreement), the City shall not (i) re-enter the Shoreside Facilities
Sites; (ii) serve a notice of election to obtain the fee simple title to
the Shoreside Facilities Sites through its reversionary interest; or (iii) bring
a proceeding on account of such default to (A) dispossess Columbia and/or
other occupants of the Shoreside Facilities Sites; (B) re-enter the
Shoreside Facilities Sites; (C) terminate this Agreement; or (D) otherwise
exercise any other rights or remedies under this Agreement by reason of such
default. Nothing in the mortgagee protections provided for in this Agreement
shall be construed to either (i) extend Columbia’s fee simple estate
beyond the expiration date provided for in this Agreement (including renewal
terms) that would have applied if no default had occurred; or (ii) require
any mortgagee to cure any personal default of Columbia, which the mortgagee is
not capable of curing.

 

Section 10.05.12. Failure by Mortgagee to Cure Events
of Default. In the event that a mortgagee fails to cure an Event of Default
within the applicable time frames provided for such mortgagee to cure an Event
of Default, fee simple title to the Shoreside Facilities Sites and the Casino
Support Facilities located on the Shoreside Facilities Sites shall revert to
the City and the City shall take possession of the Shoreside Facilities Sites
and the Casino Support Facilities (specifically excluding the personal property
located on the Shoreside Facilities Sites or in the Casino Support Facilities;
the Riverboat Casino, the Second Riverboat Casino and any substitute riverboat
casino; and all personal property located on said riverboats); and the City
shall be entitled to the termination fee calculated in accordance with Section 7.01
for the remainder of the applicable period from Columbia. Columbia or the
mortgagee shall, at its expense, on or before sixty (60) days after the
Shoreside Facilities Sites and Casino Support Facilities revert to the City,
remove the Riverboat Casino, the Second Riverboat Casino, if any, or any
substitute riverboat casino from the Casino Support Facilities and Shoreside
Facilities Sites.

 

Section 10.05.13. Mortgagee’s Right to Enter the
Shoreside Facilities Sites. The City and Columbia authorize each mortgagee
to enter the Shoreside Facilities Sites as necessary to effect Mortgagee’s Cure
and take any action(s) reasonably necessary to effect Mortgagee’s Cure. A
mortgagee’s rights under this paragraph shall not constitute Control of the
Shoreside Facilities Sites or otherwise be construed to mean that such
mortgagee has possession of the Shoreside Facilities Sites.

 

Section 10.05.14. Rights of Mortgagee Upon Acquiring
Control. If any mortgagee or a purchaser at a foreclosure sale shall
acquire Control of the Shoreside Facilities

 

26

 

Sites and shall cure all
monetary defaults and proceed and continue to exercise Mortgagee’s Cure rights,
then (i) any personal defaults by Columbia shall no longer be deemed
defaults; and (ii) the City shall recognize any purchaser of Columbia’s
fee simple estate subject to the City’s reversionary rights pursuant to a
foreclosure sale under a mortgage, or any transferee of Columbia’s fee simple
estate subject to the City’s reversionary rights under an assignment in lieu of
foreclosure, or, if the mortgagee should be such purchaser or assignee, the
mortgagee and any assignee of the mortgagee.

 

Section 10.05.15. Payments Made by Mortgagee. Any
payment made by a mortgagee to the City to cure any claimed default shall be
deemed to have been made “under protest” and without prejudice to Columbia or
mortgagee’s recovery of such payment if the City’s claim of a default shall be
determined to have been erroneous.

 

Section 10.06. Prohibition on City Granting
Mortgage. The City shall not grant any party a mortgage or security
interest in the Shoreside Facilities Sites or the Casino Support Facilities.
This provision, however, shall not be interpreted so as to prohibit the City
from assigning its right to receive the Fixed Amount and Percentage Amount from
Columbia hereunder.

 

Section 10.07. Bankruptcy.

 

Section 10.07.1. Affecting Columbia. If Columbia
(as debtor in possession) or a trustee in bankruptcy for Columbia rejects this
Agreement in connection with any proceeding involving Columbia under the United
States Bankruptcy Code or any similar state or federal statute for the relief
of debtors (a “Bankruptcy Proceeding”), then the City agrees, for the benefit
of each and every mortgagee, that such rejection shall be deemed Columbia’s
assignment in lieu of foreclosure. Upon such deemed assignment, this Agreement
shall not terminate and each mortgagee shall continue to have all the rights of
a mortgagee under this Agreement as if the Bankruptcy Proceeding had not
occurred, unless such mortgagee shall reject such deemed assignment by written
notice to the City within thirty (30) days after receiving written notice
of the rejection of this Agreement in Bankruptcy Proceedings. If any court of
competent jurisdiction shall determine that this Agreement shall have been terminated
notwithstanding the deemed assignment provided for in place of rejection of
this Agreement, then Columbia’s mortgagees shall be entitled to a new agreement
on the same terms as set forth herein.

 

Section 10.07.2. Affecting the City. If the City
(as debtor in possession) or a trustee in bankruptcy for the City rejects this
Agreement in connection with any Bankruptcy Proceeding involving the City,
Columbia’s fee simple estate shall continue unaffected and the City shall only
be entitled to its reversionary interest at the end of thirty (30) years
from Transfer Date and the amounts specified in Section 1.01 and Section 5.01
any damages arising from such rejection in accordance with applicable law
governing the Bankruptcy Proceeding.

 

27

 

Section 10.08. Default by the City. If the City
fails, after Closing, to comply with any or all of the obligations, covenants,
warranties or agreements to be performed, honored or observed by the City under
and pursuant to the terms and provisions of this Agreement, and such monetary
default is not cured within thirty (30) days after notice of such
non-monetary default is not cured within ninety (90) days after notice,
then Columbia shall have the right to damages, specific performance or any
other remedy legally available to Columbia. However, if the breach by the City
is non-monetary and is of a nature that it cannot reasonably be remedied or
corrected within such ninety (90) day period, then such ninety
(90) day period shall be deemed to be extended for such additional period
as may reasonably be required to remedy or correct the same if the City
promptly commences to remedy the breach upon receipt of Columbia’s notice and
continues therewith with due diligence.

 

ARTICLE 11

REPRESENTATIONS,
WARRANTIES AND COVENANTS

 

Section 11.01. Representations and Warranties.
The City represents and warrants to Columbia that the following facts and
conditions exist and are true as of the Effective Date and shall exist and be
true as of the Transfer Date and as of the date of recording of the deeds:

 

(a) The City is a
municipality duly organized and validly existing in good standing under the
laws of the state of Mississippi;

 

(b) INTENTIONALLY
OMITTED

 

(c) This Agreement
constitutes, and all documents executed and delivered by the City in connection
with the transaction contemplated hereby shall constitute, valid and binding
obligations of the City. The execution of this Agreement and all documents and
instruments to be delivered by the City in connection with the transactions
contemplated herein have been duly authorized. Neither the execution and
delivery of this Agreement nor the consummation of the transactions
contemplated hereby will be in violation of any agreement, contract or other restriction
to which the City is a party or is bound;

 

(d) Harrah’s has no
outstanding obligations, including payment obligations, in connection with
Harrah’s acquisition or development of the Property or otherwise under the
Master Agreement.

 

(e) As of the date
hereof, Harrah’s is in full compliance with its obligations under the Master
Agreement and the Recorded Documents and there is no state of facts, either
with or without the passage of time that would constitute a default thereunder.

 

(f) There are no pending
eminent domain proceedings or any other governmental action or judicial actions
of any kind against the Property, with the exception of the McGuffie Two lot.
The City is not negotiating to transfer or sell any portion of its interest in

 

28

 

the Property. The
Property complies with all current building codes and other City requirements.

 

(g) This Master
Agreement is unmodified and in full force and effect. Except for documents and
other agreements of record between the City and Harrah’s (collectively, the “Recorded
Agreements”) and the Master Agreement, there are no written or oral agreements,
understandings or ordinances relating to the Property.

 

(h) There are no
lease, rental, license or other agreements affecting any portion of City
Property, except for the agreements with the City merchants to use the City
Garages and the agreement with Mississippi River Tours, Inc., which only
affect the Second Riverboat Property, and the agreement with the U.S. Army
Corps of Engineers regarding maintenance of the floodwall, and no persons or
entities are in possession of or have any right to use or occupy any portion of
the City Property except for the City and those parties to the above-referenced
agreements;

 

(i) INTENTIONALLY
OMITTED

 

(j) INTENTIONALLY
OMITTED

 

(k) There is no
existing or, to the City’s knowledge, pending or threatened condemnation or
other similar proceedings affecting any portion of the City Property, or any
pending public improvements in, about or otherwise affecting the City Property,
except for the improvements described herein, or access to the City Property or
which will create additional cost to the owner of the City Property by means of
special assessments;

 

(l) INTENTIONALLY
OMITTED

 

(m) INTENTIONALLY
OMITTED

 

(n) INTENTIONALLY
OMITTED

 

(o) INTENTIONALLY
OMITTED

 

(p) The City is not
a “foreign person” within the meaning of Section 1445(f)(3) of the
Internal Revenue Code of 1986;

 

(q) INTENTIONALLY
OMITTED

 

(r) The City knows
of no facts, nor has the City failed to disclose any facts it is aware of,
which would materially adversely affect Columbia’s fee simple estate or prevent
Columbia from operating the Hotel, the Casino Support Facilities or the
Riverboat Casino. The City is not making any representations as to matters at
law;

 

(s) INTENTIONALLY
OMITTED

 

(t) Upon the
execution of the Agreement, that prior Master Agreement, dated January 21st,
1993, and all amendments thereto, entered into by and between the City and

 

29

 

Harrah’s shall be of no
further force or effect except for definitions, as provided under this
Agreement’s Definitions Section

 

(u) The City has
received no notice that the City Property violates any applicable law,
regulation, ordinance code or insurance requirement.

 

Section 11.02. Covenants. Commencing on the
Effective Date and continuing until the earlier of (i) the date this
Agreement is terminated or expires the City:

 

(a) INTENTIONALLY
OMITTED

 

(b) INTENTIONALLY
OMITTED

 

(c) INTENTIONALLY
OMITTED

 

(d) INTENTIONALLY
OMITTED

 

(e) INTENTIONALLY
OMITTED

 

(f) shall not enter
into any contract for an alternative riverboat casino on property owned, leased
or controlled by the City as outlined in Article 6 of the Agreement.

 

(g) agrees to amend
its zoning ordinance to allow a surface parking lot, as opposed to multi-level
parking decks, to be in the historic/downtown district.

 

(h) agrees to convey
parcel 60 for parcel 21, subject to the City’s reversionary interest in the
Shoreside Facilities Sites, as defined in Article 9, and which is deemed
to be fair market value under Section 57-7-1 of the Mississippi Code. The
City shall be responsible for executing all documents necessary to complete
this swap.

 

(i) agrees to close
that portion of South Street that is owned on both sides by Columbia, provided
that the City retains access to the floodgates and any utilities within that
portion of South Street.

 

Section 11.03. Survival of Representations,
Warranties, and Covenants. All of the City’s representations, warranties
and covenants shall survive the Transfer. In the event any of the City’s
representations, warranties or covenants hereunder are determined to be
materially false or misleading prior to the Transfer, Columbia shall have the
option of (i) waiving such failure and proceeding to the Transfer subject
thereto or (ii) declaring this Agreement to be in default and exercising
the right to damages, specific performance or any other legally available
remedy, including, but not limited to, the right to terminate this Agreement
without a termination fee. In the event any of the City’s representations,
warranties or covenants are determined to be materially false or misleading
after Transfer and Columbia suffers damages, Columbia shall be entitled to
damages, specific performance or any other remedy legally available to
Columbia.

 

30

 

Section 11.04. Columbia’s Representations and
Warranties. Columbia represents and warrants to the City that the following
facts and conditions exist and are true as of the date hereof and shall exist
and be true as of the date of Transfer and as of the date of recording of the
deeds:

 

(a) Columbia is a
Mississippi limited liability company duly organized and validly existing in
good standing under the laws of the state of Mississippi and authorized to do
business in Mississippi;

 

(b) This Agreement
constitutes, and all documents executed and delivered by Columbia in connection
with the transaction contemplated hereby shall constitute, valid and binding
obligations of Columbia. The execution of this Agreement and all documents and
instruments to be delivered by Columbia in connection with the transactions
contemplated herein has been duly authorized. Neither the execution and
delivery of this Agreement nor the consummation of the transactions
contemplated hereby will be in violation of any agreement, contract or other
restriction to which Columbia is a party or is bound.

 

(c) The Guaranty of
CSC constitutes a binding obligation of Columbia Properties Vicksburg, LLC.
Execution of said guaranty has been duly authorized and does not violate any
agreements, contracts, or other restrictions to which CSC is a party or bound.

 

ARTICLE 12

MISCELLANEOUS

 

Section 12.01. Execution by Both Parties. This
Agreement shall not become effective and binding until fully executed and
delivered by Columbia and the City (“Effective Date”).

 

Section 12.02. Captions. The captions employed
in this Agreement are for convenience only and are not intended to in any way
limit or amplify the terms and provisions of this Agreement.

 

Section 12.03. Entire Agreement. This Agreement
contains the complete agreement between the parties and cannot be varied or
waived except by the written agreement of the parties. The parties agree that
said agreement constitutes the entire agreement between the parties and no
other oral agreements, understandings, representations or warranties prior to
or contemporaneous with said agreement shall be effective, except as expressly
set forth or incorporated herein.

 

Any portion of said
agreement not otherwise consummated at the Transfer shall survive the Closing
of this transaction as continuing agreement between the parties.

 

Section 12.04. Successors and Assigns. This
Agreement shall apply to, inure to the benefit of and be binding upon and
enforceable against the parties hereto and their respective

 

31

 

successors, assigns,
heirs, executors, administrators and legal representatives to the same extent
as if specified at length throughout this Agreement.

 

This Agreement may be
assigned from time to time by Columbia upon written notice to the City, to any
parent, subsidiary or affiliate of Columbia, or its successor corporation, provided
that such assignee agrees to be bound by the terms and conditions of this
Agreement. Upon assignment, Columbia shall be released from all obligations and
liabilities hereunder. The acquisition of Columbia or its parent company by a
third party shall not constitute an assignment of this Agreement by Columbia,
and this Agreement shall remain in full force and effect between Columbia and
the City.

 

In addition, Columbia
shall have the right, upon written notice to the City, to assign this Agreement
to a third party, provided that such third party’s performance under this
Agreement continues to be guaranteed by Columbia Sussex Corporation, Inc.,
its successor corporation or corporation with a net worth of at least TWENTY
MILLION DOLLARS and 00/100 ($20,000,000).

 

The City shall not assign
this Agreement. The City shall have the right to assign the proceeds derived
pursuant to this Agreement to third parties.

 

Section 12.05. Sale of Fee Simple Title. The
limitations on assignability of this Agreement set forth in Section 12.04
shall not in any manner limit Columbia’s right to sell the Hotel or Hotel Site
to a third party after the Hotel is substantially completed and opens to the
public and commences doing business. Furthermore, Columbia shall have the right
to sell its fee simple title to the Shoreside Facilities Sites and the Casino
Support Facilities subject to the City’s reversionary interest after the Casino
Support Facilities are substantially completed and open to the public for
business.

 

Any third party purchaser
of the Hotel, the Hotel Site, the Shoreside Facilities Sites or the Casino
Support Facilities shall be subject to the terms and conditions contained in
this Agreement.

 

Section 12.06. Gender and Number. The plural
shall include the singular and the singular, the plural, wherever the context
so permits; the masculine shall include the feminine and the neuter; the
feminine, the masculine and the neuter, and the neuter, the masculine and the
feminine.

 

Section 12.07. Attorneys’ Fees and Other Costs.
The parties to this Agreement shall bear their own attorneys’ fees in relation
to negotiating and drafting this Agreement. Should Columbia or the City engage
in litigation to enforce their respective rights pursuant to this Agreement,
the prevailing party shall have the right to indemnity by the non-prevailing
party for an amount equal to the prevailing party’s reasonable attorneys’ fees,
court costs and expenses arising therefrom.

 

32

 

Section 12.08. Governing Law. This Agreement
shall be governed by and construed in accordance with the laws of the state of
Mississippi, without giving effect to any conflicts of laws.

 

Columbia and the City
agree that the venue for any dispute shall be in the Southern Federal District
Court of Mississippi. If federal court jurisdiction is not available, the venue
for any dispute shall be Warren County, Mississippi.

 

Section 12.09. Notices. All notices required,
permitted, or given pursuant to the provisions of this Agreement shall be in
writing, and either (i) hand-delivered; (ii) delivered by certified
mail, postage prepaid, return receipt requested; (iii) delivered by an
overnight delivery service; or (iv) delivered by facsimile machine
followed within twenty-four (24) hours by delivery under options (i), (ii) or
(iii), addressed as follows:

 

	
  If to City:

  	
   

  	
  City of Vicksburg

  
	
   

  	
   

  	
  1401 Walnut Street

  
	
   

  	
   

  	
  Vicksburg, MS 39180

  
	
   

  	
   

  	
  Attn: City Clerk

  
	
   

  	
   

  	
  Facsimile Number:
  (601) 634-4565

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  City of Vicksburg Legal
  Department

  
	
   

  	
   

  	
  1401 Walnut Street

  
	
   

  	
   

  	
  Vicksburg, MS 39180

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile Number: (601)
  634-6232

  
	
   

  	
   

  	
   

  
	
  If to Columbia:

  	
   

  	
  Columbia Properties
  Vicksburg LLC,

  
	
   

  	
   

  	
  a Mississippi limited
  liability company

  
	
   

  	
   

  	
  207 Grandview Drive

  
	
   

  	
   

  	
  Fort Mitchell, KY 41017

  
	
   

  	
   

  	
  Attn: Joseph A. Yung

  
	
   

  	
   

  	
  Facsimile Number: (859)
  578-1190

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Balch &
  Bingham LLP

  
	
   

  	
   

  	
  401 East Capitol Street

  

 

33

 

	
   

  	
   

  	
  Suite 200

  
	
   

  	
   

  	
  Jackson, MS 39201

  
	
   

  	
   

  	
  Attn: Scott E. Andress

  
	
   

  	
   

  	
  Facsimile No. (601)
  961-4466

  

 

Notices shall be deemed
delivered (i) on the date that is five (5) calendar days after the
notice is deposited in the U.S. mail (not counting the mailing date), if sent
by certified mail; (ii) on the date the hand-delivery is made, if hand-delivered;
(iii) on the date the transmission is made, if delivered by facsimile
machine; or (iv) on the next business day following the service, if
delivered by an overnight delivery service. The addresses given above may be
changed by any party by notice given in the manner provided herein.

 

Section 12.10. Period of Time. Whenever any
determination is to be made or action is to be taken on a date specified in
this Agreement, if such date shall fall on a Saturday, Sunday or legal holiday
under the laws of the state of Mississippi, then in such event, said date shall
be extended to the next day which is not a Saturday, Sunday or legal holiday.

 

Section 12.11. Preparation of Agreement. This
Agreement shall not be construed more strongly against either party regardless
of who is responsible for it preparation.

 

Section 12.12. Exhibits. All exhibits attached
hereto are incorporated herein by reference and made a part hereof as if fully
rewritten or reproduced herein.

 

Section 12.13. Further Agreements. The City and
Columbia agree to execute, acknowledge, and deliver, or cause to be delivered,
any and all such conveyances, assignments, confirmations, satisfactions,
releases, instruments of further assurance, approvals, consents and such other
instruments and documents as may be reasonably necessary to carry out the
intent and purpose of this Agreement and in transactions contemplated hereby.

 

Section 12.14. No personal Liability. Neither
the shareholders, officers, directors, agents or employees of Columbia, nor the
officers, employees, agents or representatives of the City shall be personally
or individually liable under this Agreement.

 

Section 12.15. Agreement to Cooperate. The City
agrees, at Columbia’s expense (i) to fully cooperate with Columbia in
connection with Columbia’s obtaining all necessary regulatory approvals,
permits and licenses for Columbia to develop the Hotel, the Casino Support
Facilities and the Riverboat Casino; and (ii) that it will join in any
applications made by Columbia for such approvals, permits and licenses if
Columbia deems such action would expedite the approval process.

 

Section 12.16. INTENTIONALLY OMITTED

 

34

 

Section 12.17. Authority to Execute. The City
and Columbia represent and warrant to each other that their respective entities
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.

 

Section 12.18. Force Majeure. An event of force
majeure shall include, but not be limited to, acts of war, insurrection, civil
strife and commotion, labor unrest, acts of God or the discovery of Hazardous
Chemicals (“Force Majeure”).

 

Upon the occurrence of an
event of Force Majeure, Columbia may cease operation of all or part of its
development efforts, recommencing such development efforts when Columbia deems,
in the reasonable exercise of its discretion, that such may be done without
jeopardy to the development, its employees or the public. It is further
understood and agreed that with respect to any obligation to be performed by
Columbia or the City, such party shall in no event be liable for failure so to
do when prevented by an event of Force Majeure. The time within which such
obligation shall be performed shall be extended for a period of time equivalent
to the delay from such event of Force Majeure.

 

Section 12.19. City as Landowner. Columbia
acknowledges that the City is a governmental entity, a municipality, subject to
laws that do not apply to private landowners. In addition, the City as a
municipality has certain governmental functions which it cannot obligate, agree
in advance how it will exercise those functions and cannot contract regarding
the exercise of its governmental functions. In recognition of the City’s status
as a municipality, it is agreed that nothing in this Agreement shall be deemed
to require the City to do anything which is in violation of applicable law or
becomes prohibitive by applicable law regarding municipalities.

 

Any covenant, agreement
or provision in this Agreement is subject to and limited by applicable state
and federal law regulating municipalities. Any agreement or covenants of
approval, or condition on the City shall never be treated as obligating the
City in its governmental capacity as a municipality or to obligate the City to
adopt any codes, ordinances or make any governmental decisions but are only
intended to apply to the City to the extent that those requirements would apply
to a private non-governmental landowner, except where it is expressly provided
herein that the City is specifically taking the specified action in its
governmental capacity.

 

Section 12.20. Counterparts. This Agreement may
be executed simultaneously in one or more counterparts, each of which will be
deemed an original, but all of which together will constitute one and the same
instrument.

 

Section 12.21. Recording Fees. All recording
fees associated with the Agreement will be the responsibility of Columbia.

 

35

 

Section 12.22. Rule Against
Perpetuities. If the rule against perpetuities or any rule of law
with respect to restrictions on the alienation of property or any other rule of
law shall limit the time when any event contemplated by the Agreement may
occur, the happening of such event shall not be impaired within any period
permitted by such rule. Such period with respect to the rule against
perpetuities shall expire upon the expiration of twenty (20) years after
the death of the last survivor of the following persons:

 

Jennifer Ann Thomas of
Memphis, Tennessee

Justin Robert Wright of Memphis, Tennessee

Kelsey Alexandra Wright of Memphis, Tennessee

Thomas Justin Bayless of Memphis, Tennessee

Nathan Wiley Reynolds of Memphis, Tennessee

 

The intent of this
provision is to allow to the maximum extent permissible by an applicable rule of
law the occurrence of any event contemplated by this Agreement.

 

36

 

Witness Our Signatures on
the date herein below.

This the 24th day of
October, 2003.

 

	
   

  	
  The Mayor and Aldermen
  of

  
	
   

  	
  The City of Vicksburg,
  MS

  
	
   

  	
   

  
	
   

  	
  /s/ Laurence E. Leyens

  
	
   

  	
  By:

  	
  Laurence E. Leyens,

  
	
   

  	
   

  	
  Mayor

  
	
  Attest:

  	
   

  	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
   

  	
   

  
	
    City
  Clerk

  	
   

  	
   

  	
   

  
	
  This the 22nd day of
  October, 2003.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Columbia Properties,

  Vicksburg, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ William J.
  Yung

  
	
   

  	
  By:

  	
  William J. Yung

  
	
   

  	
   

  	
  President

  
					

 

37

 

	
  STATE OF KENTUCKY

  	
   

  	
  )

  
	
   

  	
   

  	
  )ss.

  
	
  COUNTY OF KENTON

  	
   

  	
  )

  

 

Personally appeared before
me, the undersigned authority in and for the said county and state, on this 22nd day of October,
2003, within my jurisdiction, the within named Willims J. Yung who acknowledged
that he is the president of Columbia Properties Vicksburg, L.L.C., a Mississipi
limited liability company, and that for and on behalf of the said limited
liability company, and as its act and deed, he executed the above and foregoing
instrument, after first having been duly authorized by said limited liability
company so to do.

 

	
   

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
  NOTARY PUBLIC

  
	
  My Commission Expires:

  	
   

  
	
   

  	
   

  
	
  MICHELLE
  STALLMEYER

  	
   

  
	
   

  	
   

  
	
  [ILLEGIBLE]

  	
   

  
	
   

  	
   

  
	
  /s/ Michelle Stallmeyer

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  

 

38

 

State Of Mississippi

County of Warren

 

On this 24th day of October,
2003, personally appeared before me, a notary public in and for said County and
State, Lawrence Leyens, known to me to be the Mayor of the City of Vicksburg,
Mississippi and upon oath did depose that he is the Mayor of said City, that
the signature to said instrument was made by him as Mayor of said City, and
that the City executed the said instrument freely and voluntarily and for the
uses and purposes therein mentioned.

 

	
   

  	
   

  
	
   

  	
  /s/ Barbara Jean Luke

  
	
   

  	
  Notary Public

  

 

	
  My
  Commission Expires: July 11, 2007EXHIBIT
10.4

 

YACHT CLUB

 

06
— 087.B.5

 

DOCKAGE AGREEMENT

 

1. PARTIES:

 

This Dockage Agreement is
made this, the 29th day of December, 1992, by and between the
Greenville Yacht Club, a Mississippi corporation (hereinafter “Yacht Club”) and
Cotton Club of Greenville, Inc., a Mississippi corporation (hereinafter “Cotton
Club”).

 

WITNESSETH:

 

2. AMENDMENT OF
OPTION:

 

Yacht Club has previously
entered into a written Option agreement with Matt Walker, being the same person
as Matthew B. Walker, dated October 9, 1992. For and in consideration of
the sum of $10.00 cash in hand paid to Yacht Club by said Matthew B. Walker, as
agent for his principal, Cotton Club of Greenville, Inc., a Mississippi
corporation, and the mutual promises, obligations and undertakings hereinafter
set forth, receipt and sufficiency of all of which is hereby acknowledged by
the parties hereto, said Option is hereby amended as follows: (a) to
substitute as the optionee named therein Cotton Club of Greenville, Inc.,
granting to said corporation all of the rights as optionee thereunder to the
same full extent as if said corporation, instead of Walker, had been originally
named therein as optionee; and (b) to substitute this Dockage Agreement
for the similar agreement originally attached as Exhibit “A” to said
Option. In the event that said Option is exercised by Cotton Club of Greenville, Inc.,
this Dockage Agreement shall constitute Exhibit “A” thereto and

 

 

shall constitute the sole
and entire agreement between the parties, and the prior similar agreement
originally attached as Exhibit “A” to the option is hereby declared null,
void and of no further effect whatsoever.

 

3.  INCEPTION AND
TERMINATION:

 

(a) This Dockage
Agreement shall become effective upon exercise by Cotton Club of the above mentioned
Option (the “inception date”); subject, however, to Cotton Club having the
right to terminate this Agreement at any time during the first year of the
initial term of this Agreement if it is not duly licensed during said year to
operate a riverboat gaming casino at the location contemplated by this
Agreement and does not otherwise receive all necessary authorizations from the
Mississippi Tax Commission and/or the Mississippi Gaming Commission to operate
such a casino. Provided, however, that in the event of such termination Cotton
Club shall nevertheless be unconditionally obligated to pay to Yacht Club the
first year’s dockage fee of $300,000.00, as hereinafter provided, and such
payment will fully discharge all of its obligations for payment of any dockage
fees under this Agreement. Cotton Club covenants and agrees to exercise due
diligence in obtaining and maintaining such license and authority.

 

(b) Further, Cotton
Club may terminate this Agreement, without cause, at any time during the second
year or any subsequent year of the initial term, or at any time during any year
of any option term hereof which has come into existence by virtue of exercise
of such option by Cotton Club, by giving written notice of

 

2

 

termination to Yacht Club
prior to midnight on December 31 of any such year, whereupon this
Agreement will be thereby terminated, effective immediately upon the giving of
such notice; provided, however, that in event of such termination by Cotton
Club it will nevertheless be unconditionally obligated to pay to Yacht Club the
full dockage fee for the next succeeding year, and such payment will fully
discharge all of its obligations for payment of any dockage fees under this
Agreement.

 

4. DOCKAGE RIGHTS
OF COTTON CLUB:

 

Yacht Club does hereby
grant to Cotton Club the right to tie up, at Yacht Club’s dock, subject to the
terms hereafter stated, a vessel or vessels, owned/operated/chartered by Cotton
Club. The precise location of such dockage, and the specific configuration of
dock barges, gangways, cables, anchors, etc., is to be agreed upon by the
parties. The general location of Cotton Club’s vessel shall be the southernmost
end of the waterfront leased by Yacht Club from the City of Greenville. The
general configuration shall be such that both Yacht Club’s vessel and Cotton
Club’s vessel will be parallel to each other and perpendicular to the bank of
Lake Ferguson.

 

Yacht Club’s grant to
Cotton Club of the right to dock its vessel(s) is made with disclaimer of
all warranties, express or implied, of whatsoever kind, nature or character,
associated with Yacht Club’s facilities/premises. In particular, Yacht Club
does not warrant the suitability, fitness, habitability or seaworthiness of the
existing vessels or premises to which Cotton Club’s vessel(s) will be
docked.

 

3

 

5. NO BAILMENT
CREATED:

 

It is expressly
understood that the dockage of Cotton Club’s vessels to and on Yacht Club
premises/facilities does not create the existence of a bailor/bailee
relationship between Cotton Club and Yacht Club. The parties agree that since
Cotton Club’s vessel(s) will not be delivered to Yacht Club as that term
is understood in maritime law, then no maritime presumptions of fault, etc.,
will arise in Cotton Club’s favor should Cotton Club’s vessels sustain damage
while docked pursuant to this Agreement. However, Cotton Club’s failure to
timely pay rents or commission of any tortious act which causes damage to Yacht
Club (or any of its members or guests) by any Cotton Club vessel will give rise
to a maritime lien in favor of Yacht Club (or the member or guest so injured)
against the offending vessel.

 

It is specifically agreed
that Cotton Club will have sole and exclusive responsibility for maintaining
the care, custody and control of the vessel(s) which Cotton Club ties to
the vessel(s) owned and premises maintained by Yacht Club. Cotton Club’s
duty in this regard will include, but not be limited to, the duty to select fit
and proper links/cables/mooring devices to insure that such vessel(s) are
securely and safely docked, to periodically inspect said lines/cables/etc. to
insure that they remain fit and of proper adjustment, and to periodically
inspect its vessel(s) to insure that it remains seaworthy in all respects
during the term of this agreement.

 

4

 

The responsibility of
Cotton Club, delineated herein, for maintaining the care, custody and control
of its vessel(s) and the common areas shall not include any duty or
responsibility on its part to inspect, maintain or otherwise secure in any way
the vessel(s) and premises under the exclusive control of Yacht Club.
Yacht Club’s commission of any tortious act which causes damage to Cotton Club’s
vessel(s) (or to any of its business invitees, members or guests) will
give rise to a maritime lien in favor of Cotton Club (or to the invitee, member
or guest so injured) against the offending vessel.

 

Cotton Club agrees that
it will hold and keep Yacht Club, its employees and agents, harmless and will
indemnify Yacht Club from any and all liability or claims for damages on
account of destruction, loss or damage to any of Yacht Club’s property or on
account of injury or death to any person whomsoever, including but not limited
to members, guests, employees and business invitees of Yacht Club, but only to
the extent that such liability is attributable to the acts or omissions
(negligent or otherwise) of Cotton Club or its employees or agents.

 

6. TERM:

 

The initial term of this
agreement is five (5) years. This term shall commence on the inception
date, as provided in Section 3 above, and shall end sixty (60) months
thereafter.

 

Yacht Club grants unto
Cotton Club one five (5) year option term to begin upon the expiration of
the initial term, an additional five (5) year option term to begin upon
the expiration

 

5

 

of the first option term,
and a third option term to begin upon the expiration of the second option term
and expire upon August 31, 2010. Provided that Cotton Club has exercised
all prior option terms, if any, and is then in compliance with all terms of
this agreement, Cotton Club may exercise the next option term, if any, by
notifying Yacht Club in writing, not less than ninety (90) days prior to
the expiration of the then current term of this Agreement of its intent to so
exercise the next option term.

 

7. DOCKAGE FEES:

 

During the initial five (5) year
term this Agreement, Cotton Club agrees to pay Yacht Club an annual dockage fee
of Three Hundred Thousand Dollars ($300,000.00) payable as follows: The cash
sum of $50,000.00 has been previously paid for and on behalf of Cotton Club
upon the execution of the option dated October 9, 1992, for the moorage
rights granted herein, the receipt and sufficiency of which is hereby
acknowledged by Yacht Club; and the balance of $250,000.00 shall be paid in
three (3) equal (more or less) installments on January 9, 1993, April 1,
1993, and July 1, 1993, in accordance with the terms and conditions of the
promissory notes attached hereto as Exhibits “A”, “B” and “C”. Subject to the
provisions of Section 3 above, with respect to termination, each
successive annual payment will be due in advance on a yearly basis on the
anniversary of the inception date of this Agreement and continue throughout the
term of this Agreement and any extensions thereof. The annual dockage fees
during the option terms, if any, shall be as follows: During the first option
term — $330,000.00

 

6

 

per annum; during the
second option term — $360,000.00 per annum; during the final and third option
term — $390,000.00 per annum, prorated on a daily basis for any year of that
term less than 365 days.

 

8. FEES MUST BE PAID
IN A TIMELY FASHION:

 

Cotton Club promises to
pay fees in a timely fashion and such promise is a material term of this
Agreement. The parties agree that time is of the essence with respect to this
promise on Cotton Club’s part and any failure on Cotton Club’s part to timely
pay would constitute a material breach of contract. The burden of proof of
payment of dockage fees, in case of controversy, shall be upon Cotton Club.

 

9.  EXCLUSIVITY
PROVISIONS:

 

Yacht Club further agrees
that so long as Cotton Club is not in default of this Agreement, it will not
allow any other vessel which is primarily engaged in the business of gaming to
tie up at its dock or otherwise occupy any waterfront space in which Yacht Club
has any rights, title or interest. Cotton Club agrees that so long as it, or
any of its successors, continues to operate, or continues to have an interest
in, the gaming casino contemplated by this Agreement, neither Cotton Club nor
any such successor to Cotton Club will negotiate for or enter into any
agreement for dockage of any vessel to be used for gaming purposes at any other
location in the Greenville, Mississippi area; provided, however, during the
third option term of this Agreement Cotton Club or its successor or successors
shall not be restricted from negotiating or entering into any agreement for
dockage of a gaming vessel on Lake Ferguson.

 

7

 

10. WARRANTIES BY
THE PARTIES:

 

(A) Cotton Club

 

Cotton Club warrants that
any vessel that it docks (or causes to be tied) to any vessel owned by Yacht
Club will be, at all times during this Agreement:

 

(1) In full
compliance with any requirements imposed by the United States Coast Guard for
vessels in like service.

 

(2) Seaworthy in all
respects.

 

(3) Secured/tied/anchored
in a way not to cause damage or instability to Yacht Club’s vessel itself or
any other vessel lawfully moored to the Yacht Club.

 

(4) Properly lit and
marked so as not to pose a risk of collision to vessels navigating Lake
Ferguson.

 

(5) Equipped with
safe means of ingress and egress.

 

(6) Cotton Club is a
duly authorized and existing corporation, qualified to do business in the State
of Mississippi with full right and authority to enter into this Agreement, and
each person signing on behalf of Cotton Club is authorized to do so.

 

(7) Any conveyance
by Cotton Club of all or substantially all of the assets of the corporation
will be subject to the prior written approval of Yacht Club, provided, however,
that such approval will not be unreasonably withheld.

 

8

 

(B) Yacht Club

 

Yacht Club warrants that:

 

(1) For so long as
Cotton Club is not in default under this Agreement, Cotton Club shall and may
peaceably possess and enjoy all of the benefits of this Agreement for the
initial term, and for any option term(s), without any interruption or
disturbance, and Yacht Club will defend Cotton Club in the peaceful and quiet
enjoyment of said benefits and rights granted herein against all persons
(excluding requirements imposed on Cotton Club by any governmental regulatory
agency or entity).

 

(2) The lease
between Yacht Club and the City of Greenville, Mississippi, dated October 6,
1987, is in full force and effect, Yacht Club is not in default of any terms or
conditions therein, and Yacht Club shall continue to observe and perform each
and every term and condition of that lease. Yacht Club shall not do or permit
any act, condition or thing to occur that would or may constitute a default
under that lease. Yacht Club shall do all things at its sole expense to extend
the term of that lease to equal the term of this Agreement, including any
option terms pursuant to Section 6 above.

 

(3) The agreement
between Yacht Club and International Gaming Management, Inc. has
terminated and is void, neither International Gaming Management, Inc. nor
any other persons or entity has any rights, claim or interest in, under or to
any agreement with Yacht Club for dockage of a vessel similar to Cotton Club’s
and Yacht Club is fully empowered to grant, convey and allow Cotton Club to use
the dockage space which is the subject of this Agreement.

 

9

 

(4) Yacht Club shall
cooperate with Cotton Club in permitting Cotton Club, together with its
patrons, customers, employees, agents and others authorized to board its
vessel, to have safe and convenient ingress to and egress from that vessel and
Yacht Club shall neither interfere, nor permit any interference, with  such ingress and egress. This provision is subject to
the related provisions of Section 32 below.

 

(5) Yacht Club is a
duly-authorized and existing corporation, qualified to do business in the State
of Mississippi, with full right and authority to enter into this Agreement, and
each person signing on behalf of Yacht Club is authorized to do so.

 

11. PROTECTION
FROM VIOLATIONS:

 

Each party covenants that
it shall save and hold the other harmless from any violations by it or its
agents of: laws of the United States; administrative regulations promulgated by
agencies of the United States; laws of the State of Mississippi; and applicable
county and municipal ordinances and laws.

 

Both Yacht Club and
Cotton Club covenant that they shall commit no act or omission which would
constitute a violation of Yacht Club’s lease agreement with the City of
Greenville.

 

12. PERMITS, LICENSES,
ETC.:

 

Should it be necessary to
obtain any permits, or modifications or changes in any existing permits from
the U.S. Army Corps of Engineers, Coast Guard, or any other governmental
agency, or to

 

10

 

obtain any licenses from
any governmental agency, in order to effectuate, in a lawful manner, the
dockage of Cotton Club’s vessels, the acquisition of any such permits,
licenses, etc., and the costs associated therewith will be the sole
responsibility of Cotton Club. Yacht Club covenants to cooperate with Cotton
Club in obtaining any such permits, etc.

 

13. ALTERATIONS OR
IMPROVEMENTS:

 

Yacht Club grants unto
Cotton Club and Cotton Club reserves the right to make from time to time, at
Cotton Club’s sole expense, changes or alterations to the docking arrangement
of the vessels located at the Yacht Club, including location of gangways which
Cotton Club reasonably deems necessary for the efficient use of its vessel as a
floating gaming casino. Should it be necessary to purchase additional dock
barges, gangways, anchors, pilings, cables, fittings, etc., in order to
properly dock Cotton Club’s vessel(s), such purchases will be made by Cotton
Club, at Cotton Club’s sole expense. Any such purchases will not be deducted
from dockage fees, nor otherwise used as a set-off. Any and all dock barges,
gangways, anchors, pilings, cables, fittings, etc., purchased by Cotton Club
will immediately become the property of Yacht Club and Cotton Club agrees to
execute any and all documents necessary to transfer title of same to Yacht
Club.

 

Any such changes or
alterations shall be made in accordance with the plans and specifications
submitted to and approved in writing by Yacht Club in advance of the
commencement of any such changes or alterations, which approval shall not be
unreasonably withheld.

 

11

 

It is understood and
agreed that Cotton Club shall not make any changes or alterations which would
diminish the value of Yacht Club’s facilities, impair the usage of Yacht Club’s
own vessels and facilities, weaken the existing structures or dockage
facilities, reduce the insurability of any of the vessels located at the Yacht
Club, including the Yacht Club itself, or in any other manner interfere with
the use of the Yacht Club or any of the other vessels that are docked there by
Yacht Club or its members and their guests.

 

Should reanchoring or
rearrangement be necessary, Cotton Club agrees to reanchor the existing Yacht
Club vessels in a workmanlike manner, such reattachment and reanchoring to be
performed with reasonable care and the result of which shall be as similar as
practical to the present attachment and anchoring. Cotton Club further agrees
to indemnify and hold Yacht Club and any vessels owned by Yacht Club harmless
from any accident arising due to any defect in the location or method or
material of the attachment and/or any defects in the dockage equipment, and
further agrees to indemnify and hold Yacht Club harmless from any damage that
might be caused to Yacht Club vessels or to any of the property of the members
of Yacht Club as a result of the Cotton Club vessels being defectively docked
there, or as a result of any negligence and/or defect in the method by which
any of the vessels are attached or reattached by Cotton Club. In addition,
Cotton Club shall be solely responsible for making such periodic adjustments to
the

 

12

 

agreement shall provide
that such policy shall not be cancelled without thirty (30) days written
notice to the Yacht Club.

 

If Cotton Club fails to
continuously provide such insurance, Yacht Club may obtain such insurance and
Cotton Club will reimburse Yacht Club for the cost thereof within ten days
after Yacht Club’s written demand for reimbursement.

 

15.  INSOLVENCY
OR BANKRUPTCY:

 

In the event of the
insolvency or bankruptcy of Cotton Club or the filing of any Petition under the
Bankruptcy Act, voluntarily or involuntarily, and if such bankruptcy is not dismissed
within ninety (90) days of the filing of such petition, or in the event of
a general assignment for the benefit of creditors, then Yacht Club shall have
the right and privilege to either (a) immediately terminate this Agreement
by thirty (30) days written notice; or (b) re-enter and take
possession of the dockage space and hold cotton Club liable for the difference,
if any, between the dockage fees herein reserved for the unexpired portion of
the existing term and any amount of dockage fees from a third party which Yacht
Club is able to procure for the unexpired portion of the term, such monthly
difference being a separate cause of action, nor shall Yacht Club be liable to
Cotton Club for any larger amount of which Yacht Club is able to procure. Provided,
that nothing herein shall obligate Yacht Club to enter into any agreement with
any third party for the subject dockage space or any portion thereof for said
unexpired portion of the term.

 

13

 

16. DELIVERY AT
END OF DOCKAGE AGREEMENT:

 

Cotton Club agrees to
deliver to Yacht Club, or Yacht Club’s agents or assigns, the dockage space at
the end of this Agreement, cleared of all persons and property, in the same
good order and condition as the same were received by Cotton Club, ordinary
wear and tear, and damage by fire or other casualty covered by insurance
excepted, and, if requested by Yacht Club, to reposition Yacht Club’s
facilities to their original-position occupied prior to inception of this
Agreement, insofar as same is reasonable and practicable, at Cotton Club’s sole
expense. No demand or notice of such delivery shall be necessary.

 

17. RIGHT OF
ENTRY:

 

Yacht Club reserves the
right during the term of this dockage agreement to enter upon and into any
vessel placed at the dockage space at reasonable hours to inspect the same, but
has no obligation to make an inspection of said vessel.

 

18. NUMBER OF
VESSELS:

 

This Agreement entitles
Cotton Club to dock no more than one (1) casino vessel at the Yacht Club.
However, Cotton Club shall be permitted to furnish and position one or more
additional vessels to be owned by Yacht Club across the front of Cotton Club’s
and Yacht Club’s vessels for use in boarding those vessels.

 

19. DEFAULT OF DOCKAGE
FEES, ETC.

 

All covenants and
agreements herein made and obligations assumed are to be construed also as
conditions, and these presents or upon the express condition that if Cotton
Club shall fail to

 

14

 

pay, when due, any one of
the aforesaid annual dockage payments, or any other money due or payable
hereunder, and the said failure to pay shall continue for twenty (20) days
after the mailing of written notice by certified or registered mail to Cotton
Club by Yacht Club of such failure to pay, or should Cotton Club fail to
perform or observe any of the other covenants, agreements or obligations herein
made or assumed by Cotton Club, and such failure shall continue for thirty (30)
days after the mailing of written notice by certified or registered mail to
Cotton Club by Yacht Club of such default, then, and thenceforth, in any said
events, this Agreement may be terminated at the option of the Yacht Club of
written notice to Cotton Club and Yacht Club may immediately retake possession
of the dockage space by removing any vessel or vessels occupying same and hold
any such vessels until amounts in default have been paid, failing which payment
Yacht Club may exercise its maritime lien against any such vessels for dockage
charges. In addition, Yacht Club shall thereafter be entitled to recover of
Cotton Club the difference, if any, between all sums due to it under this
Agreement and any amount of dockage charges from a third party which Yacht Club
is able to procure during the unexpired portion of the term, such difference
being a separate cause of action, nor shall Yacht Club be liable to Cotton Club
for any larger amount of which Yacht Club is able to procure. Provided, that
nothing herein shall obligate Yacht Club to bargain or sell the dockage space
or any portion thereof for said unexpired portion of the term hereof.

 

15

 

20. RIGHT TO
TERMINATE NOT EXCLUSIVE:

 

In addition to Cotton
Club’s right to terminate this Agreement as provided in Section 3 above,
each party shall have the right to terminate this Agreement, together with all
rights and duties hereunder, in the event of the other’s default of any
material terms or provisions herein. This right to terminate is in addition to and
not in exhaustion of such other rights that either party has or causes of
action, either under state, federal or maritime law, that may accrue because of
a party’s failure to fulfill, perform or observe the obligations, agreements or
covenants of this agreement, and the exercise or pursuit by either party of any
of the rights or causes of action accruing hereunder shall not be in exhaustion
of such other rights or causes that such party might otherwise have.

 

21. ASSIGNMENT:

 

Cotton Club shall have
the right to assign the dockage space or any and all other rights under this
Agreement to an entity in which it has a financial interest, but not otherwise
without the written approval of Yacht Club, which approval shall not be
unreasonably withheld. No such assignment shall relieve Cotton Club of any of
its obligations under this Agreement.

 

22. SINKING OF
DOCKED VESSEL:

 

Should any vessel docked
by Cotton Club at the Yacht Club sink then Cotton Club will have the obligation
of raising the vessel at Cotton Club’s expense should Yacht Club so decide.
Such obligation to raise the sunken vessel would be independent of and in
addition to any obligation imposed by the United States Corps of Engineers

 

16

 

or the United States
Coast Guard regarding wreck removal.

 

23. WAIVER OF
BREACH:

 

It is hereby covenanted
and agreed that no waiver of a breach of any of the covenants of this Agreement
shall be construed to be a waiver of any succeeding breach of the same or any
other covenants.

 

24. ATTORNEY’S
FEES:

 

Cotton Club covenants to
pay all costs of collection, including reasonable attorney’s fees, if all or
any part of the dockage fees provided for herein are collected after maturity
and after expiration of the grace period provided for with respect to
forfeiture in Section 19 with the aid of an attorney. Also either Yacht
Club or Cotton Club shall pay reasonable attorney’s fees to the other party’s
attorney in the events it becomes necessary for the non-defaulting party to employ
an attorney to force the defaulting party to comply with any of the covenants,
obligations, or conditions imposed by this Agreement.

 

If a final court decision
is to the effect that the party charged is not in violation or default, such
party shall not be required to pay attorney’s fees incurred by the charging
party.

 

25. UTILITIES:

 

Cotton Club agrees that
at its sole expense it will take such actions as are necessary to provide any
vessel docked at the Yacht Club by Cotton Club with sewerage and utility
services and will be solely responsible for the timely payment of all electric,
gas, telephone or other utility services provided to any vessel docked

 

17

 

by it at the Yacht Club.

 

26. HOLDING OVER:

 

It is mutually understood
and agreed that in the event Cotton Club should hold over after the termination
of this Agreement, either by expiration of the term herein stated or otherwise,
such  holding over
shall not be construed as a holding over from month to month, year to year, or
term of years, or for a periodic term of any kind, but such holding over shall
be from day to day and solely at the will of Yacht Club.

 

27. REPAIRS:

 

Cotton Club shall be
solely responsible for any and all repairs or maintenance on its vessel(s) docked
at the Yacht Club provided the need for such repairs does not arise out of
Yacht Club’s negligence. Additionally, Cotton Club shall be solely responsible
for any repairs or maintenance required on the gangways, anchors, deadmen, cables,
chains, spuds, or additional docked barges needed for the safe dockage of any
Cotton Club vessel, and Cotton Club shall assume full responsibility for the
safe and continued flotation of any such vessel, excluding however repairs
and/or flotation deficiencies arising out of Yacht Club’s negligence. Cotton
Club shall also be responsible for providing good and strong cable reasonably
sufficient to withstand wind, wake and waves, the rise and falls of the water
levels of Lake Ferguson, and reasonably sufficient to keep its vessel safely
docked at the Yacht Club. Cotton Club shall be solely responsible for the
mooring cable and anchor adjustments necessary for it to move or

 

18

 

relocate the existing
Yacht Club vessel, or other vessels at the Yacht Club facility, or for it to
relocate any such vessels, including its own, or any such attached piers.

 

28. NOTICES:

 

All notices to be given
to either party shall be by certified mail or registered mail, return receipt
requested, whether or not specifically stated herein. All notices to be given
to Yacht Club shall be addressed to it at P.O. Box 417, Greenville,
Mississippi, 38701, or to such other address as shall hereafter be directed in
writing by Yacht Club to Cotton Club. A copy of any such notice to Yacht Club
shall be mailed simultaneously to its attorney, as follows: C.W. Walker, III,
Lake, Tindall, Hunger & Thackston, P.O. Box 918, Greenville, MS
38702-0918. All notices herein provided to be given to Cottons Club shall be
addressed to it at P.O. Box 914, Mobile, Alabama 36601, or to such other
address as shall hereafter be directed in writing by Cotton Club to Yacht Club.
A copy of any such notice to Cotton Club shall be mailed simultaneously to its
attorneys, as follows:

 

Fred C. DeLong, Jr.
or Roy D. Campbell, III, Campbell, DeLong, Hagwood & Wade, P. O.
Box 1856, Greenville, Mississippi 38702-1856. The time any such notice shall
begin to run is the date of the mailing of such notice.

 

29. APPLICABLE
LAW:

 

The terms of this
Agreement are to be construed under the maritime laws of the United States, to
the extent applicable, if any, and/or under the laws of the State of
Mississippi.

 

19

 

30. FOR
CONVENIENCE ONLY:

 

Captions of the several
articles contained in this Agreement are for convenience only.

 

31. COMPLIANCE
WITH COAST GUARD REGULATIONS:

 

Cotton Club shall be
solely responsible for such lighting and/or marking of any of its vessels, and
any anchorage or mooring cables affixed thereto as are required by the U.S.
Coast Guard regulations or any and all other applicable law. Additionally,
Cotton Club shall be solely responsible for the securing of any and all Coast
Guard permits required for the operation of the demised premises by Cotton Club
in the fashion anticipated.

 

32. INGRESS AND
EGRESS:

 

Cotton Club shall be
solely responsible for the installation, maintenance and repair of any walkways
or gangways used to board Cotton Club’s vessel or vessels. Cotton Club shall be
obligated to keep any such walkways and/or gangways free of ice or any other
obstructions which might impair ingress and egress and will be required to
maintain adequate lighting in said areas. Yacht Club shall cooperate with
Cotton Club in allowing it to provide safe and convenient ingress and egress to
its vessel to accommodate the expected heavy flow of patrons and guests to its
vessel, as set forth in Section 10(B)(4) above.

 

The parties’ rights and
obligations respecting common areas used by their patrons, invitees, guests,
agents and employees, such as the gangway and/or access barge which they
contemplate using jointly for boarding, shall be to enjoy equal access to and
across

 

20

 

such areas, with Cotton
Club alone to be responsible for maintaining those areas and for furnishing any
equipment needed for such common areas.

 

33. SECURITY:

 

Cotton Club shall be
responsible for providing security to guard against unwanted persons boarding
its own vessels, and shall also be responsible for providing security to guard
against its own patrons entering vessels owned by Yacht Club or its members.

 

34. RELATION OF
THE PARTIES:

 

This Agreement shall in
no way be construed or interpreted as creating a partnership, joint venture, or
any legal relationship between Yacht Club and Cotton Club other than that of a
dockage relationship. Nor shall this Agreement be construed or interpreted as a
lease or sub-lease; it is strictly an agreement for certain dockage rights and
responsibilities.

 

35. AGREEMENT MAY BE
EXECUTED IN MULTIPLE COUNTERPARTS:

 

The parties agree that
the foregoing Agreement may be executed in counterparts, that facsimile
signatures (whether by fax or otherwise) will be considered as valid as pen-and-ink
signatures, and that when counterparts have been executed by all parties, the
Agreement shall be binding in accordance with its terms.

 

21

 

IN WITNESS WHEREOF, the
parties hereto have executed this Dockage Agreement on the date first above
written and hereby attest that they have read the foregoing and that it is
their true and complete agreement.

 

	
   

  	
   

  	
  GREENVILLE YACHT CLUB

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
   

  	
   

  	
  Commodore

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  [ILLEGIBLE]

  	
   

  	
   

  
	
  Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  COTTON CLUB OF
  GREENVILLE, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Matthew B. Walker

  
	
   

  	
   

  	
   

  	
  Matthew B. Walker,
  President

  
	
   

  	
   

  	
   

  
	
  STATE OF MISSISSIPPI

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  COUNTY OF WASHINGTON

  	
   

  	
   

  

 

PERSONALLY APPEARED
BEFORE ME, the undersigned authority in and for the county and state aforesaid,
the within named [ILLEGIBLE] and [ILLEGIBLE], respectively the Commodore and
Secretary of the GREENVILLE YACHT CLUB, a Mississippi corporation, who
acknowledged that as such officers and for and on behalf of said corporation as
its act and deed they signed and delivered the above and foregoing Dockage
Agreement on the day and year therein mentioned for the purposes therein
stated, after first being authorized so to do.

 

GIVEN UNDER MY HAND AND
OFFICIAL SEAL, this the 29th day of Dec., 1992.

 

	
   

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
  Notary Public

  
	
  My Commission Expires:

  	
   

  
	
  12/5/95

  	
   

  

 

 

 

STATE OF
MISSISSIPPI

 

COUNTY OF
WASHINGTON

 

PERSONALLY APPEARED
BEFORE ME, the undersigned authority in and for the county and state aforesaid,
the within named Matthew B. Walker, President of COTTON CLUB OF GREENVILLE,
INC., a Mississippi corporation, who acknowledged that as such officer and for
and on behalf of said corporation as its act and deed he signed and delivered
the above and foregoing Dockage Agreement on the day and year therein mentioned
for the purposes therein stated, after first being authorized so to do.

 

GIVEN UNDER MY HAND AND
OFFICIAL SEAL, this the 29th day of Dec., 1992.

 

	
   

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
  Notary Public

  
	
  My Commission Expires:

  	
   

  
	
  12/5/95

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