Document:

Exhibit 10.51

 

AMENDED AND RESTATED OPERATOR’S CONTRACT

 

This Operator’s Contract (“Agreement”) is made and entered into by and between the Black Hawk County Gaming Association, an Iowa non-profit corporation (the “BHCGA”) and IOC Black Hawk County, Inc., an Iowa Corporation (“IOC”) as of the 9th day of November, 2004.

 

WHEREAS, the BHCGA is an Iowa non-profit corporation with its principal place of business in Black Hawk County, Iowa, which corporation intends to apply for a license to be granted by the Iowa Racing and Gaming Commission (“IRGC”) for an excursion gambling boat; and

 

WHEREAS, IOC wishes to enter into a contract with the BHCGA as the operator of the excursion gambling boat pursuant to the rules and regulations of the IRGC.

 

NOW THEREFORE, for and in consideration of the mutual covenants herein contained, it is agreed as follows:

 

1.                                         The parties intend to submit an application to the IRGC (the “Application”) pursuant to which they will operate a gambling excursion boat.

 

2.                                         This Agreement shall commence on the date of its execution (the “Commencement Date”) and terminate on March 31, 2015, unless terminated earlier pursuant to paragraph 11 below, provided, however, that so long as IOC has substantially complied with this Agreement and the IRGC rules and the parties’ gaming license is renewed and/or in effect, IOC is hereby granted the right to renew this Contract for succeeding three year periods, the last of which shall terminate on the last date for licensed gaming as approved by Black Hawk County voters pursuant to Chapter 99F of the Code of Iowa. If the IRGC denies the Application, this Contract will immediately terminate upon the occurrence of such event.

 

3.                                         IOC as operator, shall be responsible for the payment of the initial application fees, all annual licensing fees as required by the IRGC, the payment of all premiums or any additional fees required by the IRGC and all gaming taxes under the provisions of Iowa Code Chapter 99F and its regulations and any amendments thereto, or any other provisions of the Iowa code, all of which are required in order to maintain an excursion boat gambling license.

 

4.                                         IOC agrees to provide all necessary accounting and verification required by the IRGC to determine the adjusted gross receipts in order to determine the gaming taxes as assessed pursuant to Iowa Code Chapter 99F, and shall comply with all reasonable requests of the BHCGA and/or the IRGC, or any other regulating body, to determine the extent of the gaming tax, and further agrees to make any payments required in a timely fashion.

 

5.                                      A. Upon issuance of a gaming license by the IRGC, IOC will make a one time gift of $1,000,000 to The Waterloo Development Corporation for a project to be approved by BHCGA, The Waterloo Development Corporation and the City of Waterloo. In addition, IOC shall advance to BHCGA a payment of $1,500,000 on the date of such issuance  and advance an additional payment of $1,500,000 on the anniversary date. Upon the commencement of operations (and continuing for the term of this Agreement), IOC shall pay a fee to the BHCGA equal to 4.1%  of each week’s adjusted gross receipts (as defined in Section 99F.1(1) of the Iowa Code), with IOC receiving a deduction for payments advanced to BHCGA creditable at the rate of 50% of each weekly payment until the advance has been retired. These weekly payments shall be made by 12:00 Noon on Friday following the completion of each calendar week.

 

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B.                                     From said sums, the BHCGA shall be responsible for all distributions required by Iowa Code Section 99F.5, Subsection 1, all of its administrative costs (other than initial application costs), the annual DCI investigation as required, all legal expenses, salaries, and all related costs associated with the administration of its license.

 

C.                                     BHCGA will use its best efforts to negotiate an exclusive gaming development agreement with the City of Waterloo. If BHCGA is successful in negotiating a gaming development/dock site agreement containing these terms which is otherwise acceptable to IOC, then IOC shall pay to BHCGA an additional fee of 1.65% of each week’s adjusted gross receipts (as defined in Section 99F.1(1) of the Iowa Code) continuing for the term of such agreement, which fee shall include and be in lieu of any admission or docking fee which might otherwise be charged the county or any city..

 

D.                                     IOC covenants and agrees to be responsible for the payment of all regulatory charges as required by the IRGC. IOC shall provide, at its expense, all necessary accounting and documentation to establish to the reasonable satisfaction of the BHCGA, the City of Waterloo, Black Hawk County, and the IRGC, computation of the fees set forth above. IOC agrees to pay to the BHCGA and to account to the BHCGA as required to comply with the IRGC’s rules and regulations.

 

E.                                      In the event the wagering tax charged by the State of Iowa under 99F. 11 of the Code of Iowa is increased above its current top bracket rate of 22% of the adjusted gross receipts, IOC shall be entitled to a prorated credit against payments due under this contract equal to the amount of such increased tax payable to the state.

 

F.                                       BHCGA hereby acknowledges and agrees that it is quite possible that some or all of the approvals may not be obtained and that IOC may determine in its sole and absolute discretion that it is not in its best interest to seek or continue to seek approvals to develop the project or to operate or continue to operate the project (an “IOC Termination Decision”) BHCGA further agrees that upon receipt of written notice of an IOC Termination Decision, this Contract shall terminate without any further obligation by either party.

 

6.                                     IOC agrees to hold the BHCGA harmless and to defend it from any and all claims arising out of IOC’s operation of its gambling and excursion boat and any related activity of IOC as required by this Agreement, city and county ordinances, or state or federal statutes, and all regulations promulgated thereunder. IOC shall be responsible for the payment of all legal expenses incurred by the BHCGA in defense of any such claim, and all costs attributable thereto including payment of any settlements, damage awards and interest thereon. IOC shall not be responsible for any acts or omissions of the BHCGA and the indemnity shall not apply thereto.

 

7.                                     The BHCGA agrees with IOC that it will not enter into any agreements with any operators, and will not make Application to the IRGC for any operator, to operate gambling excursion boats within Black Hawk County without first obtaining the written consent of IOC which may be withheld by IOC for any reason in IOC’s sole and absolute discretion. In addition, the BHCGA agrees to take all reasonable steps available to the BHCGA to prevent any other operator or excursion boat gambling license holder from conducting operations within Black Hawk County without the written prior permission of IOC.

 

8.                                     It is agreed that this Agreement is intended to comply with, and is subject to all the rules and regulations of the IRGC, the ordinances of the City of Waterloo, and the laws of the State of Iowa and

 

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of the United States of America. The terms of this Agreement are subject to amendment to comply with any of said requirements or any changes in any laws or regulations. In the event that any provisions of this

 

Agreement is determined to be invalid by a court of competent jurisdiction, the remaining provisions of this Agreement shall remain in full force and effect.

 

9.                                    IOC agrees that it will provide, at its expense, within the time requirements set forth by the regulations of the IRGC, all necessary audits of financial transactions and conditions of the operations conducted by IOC, as well as audits of the financial transactions and conditions of IOC’s total operations as required by the rules and regulations of the IRGC.

 

10.                             IOC and the BHCGA do hereby agree and covenant with each other to comply with the terms of Iowa Code Section 99F, all chapters of the Iowa Code, the U.S. Federal Code, all City ordinances of the City of Waterloo, and any and all regulations promulgated pursuant to any such law as duly adopted. Both parties represent and covenant with each other that they will cooperate with each other in order to achieve their mutual goals.

 

11.                             In the event either IOC or the BHCGA is deemed by the other or the IRGC not to be in compliance with the terms of this Agreement, the non-breaching party or the IRGC shall be entitled to specific performance of the terms of this Agreement. Further, the parties agree that in the event of any operational default, the defaulting party shall be required to cure such default to the satisfaction of the IRGC. In the event said party does not cure the default to the satisfaction of the IRGC, then the non-defaulting party may, at its option, after obtaining written approval from the IRGC and giving the other party thirty (30) days written notice and opportunity to cure, declare this Agreement terminated. This Agreement may be terminated by the BHCGA after given IOC thirty (30) days written notice and opportunity to cure, upon the occurrence of any of the following events:

 

1.                                   Loss or suspension of more than thirty (30) days of gaming, liquor or any governmental license required to operate a gaming facility;

 

2.                                   Material breach of IOC’s obligations under this Agreement;

 

3.                                   Absence of an operational gaming facility by IOC in Waterloo for more than thirty (30) days in any twelve-month period;

 

If by reason of Force Majeure (as hereinafter defined) either party is unable to carry out, either in whole or in part, its obligations herein contained, that party shall not be deemed in default and its obligations shall be suspended so long as such inability continues, provided that it shall use commercially reasonable efforts to perform its obligations. “Force Majeure” shall mean acts of God; winds; hurricanes; tornadoes; fires; epidemic; landslides; earthquakes; floods; strikes; lockouts or other industrial disturbances; acts or public enemies; acts, failures to act or orders of any kind of any governmental authorities, acting in their regulatory or judicial capacity, which are unrelated to the performance of IOC; insurrections; military action; war, whether or not it is declared; sabotage; riots; civil disturbances; explosions; or any cause or event, not reasonably within the control of either party, which precludes that party from carrying out, in whole or in part, its obligations under this Agreement. However, Force Majeure shall not excuse payment of IOC’s obligations under paragraph 5.A for the first four weeks of such occurrence, further, in the event that there is no operational gaming facilities by IOC in Waterloo for more than six consecutive months at any time or a total of nine months during the term of this Agreement, IOC’s obligations herein shall no longer be excused.

 

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12.                              IOC agrees to provide the BHCGA financial performance reports of IOC’s operations on a weekly basis.

 

13.                              This Agreement embodies the entire agreement between the parties and may be amended or supplemented only by an instrument in writing executed by the party against whom the enforcement is sought.

 

14.                              All representations, warranties and indemnities set forth in this Agreement shall survive the execution hereof.

 

15.                              The Agreement may be executed in a number of identical counterparts, and is so executed, each such counterpart is deemed an original for all purposes, and all such counterparts hall collectively constitute one agreement.

 

16.                              This Agreement binds the parties hereto and inures to the benefit of their respective heirs, personal representatives, successors or assigns.

 

17.                              In addition to the acts and deeds recited in this Agreement and contemplated herein, the parties hereto shall execute any and all additional agreements as may be necessary to consummate the transactions contemplated by this Agreement and to fulfill the intentions of this agreement.

 

18.                              Time is of the essence of this Agreement and each and every provision contained herein.

 

19.                              In the event a dispute arises between the parties, hereto, each party shall be responsible for paying its own attorney’s fees and court costs, if any, incurred in connection with such dispute.

 

20.                              If and in the event of a dispute arising hereunder, venue is vested in the Iowa District Court for Black Hawk County, or in any Federal District Court in Iowa which has jurisdiction. IOC acknowledges that it has negotiated this Agreement in Black Hawk County, Iowa, and has made numerous business contacts and entered into agreements relating to matters sufficient to confer jurisdiction on the Iowa District Court in and for Black Hawk County.

 

21.                              The parties hereto represent to each other that each has the full right, power and authority to enter into this Agreement and to fully perform its obligations. The persons executing this Agreement warrant and represent that each has the authority to execute in the capacity stated and to bind the parties hereto.

 

22.                              IOC shall not have the right to assign this Agreement without the prior written consent of the IRGC and the BHCGA which may be withheld by the BHCGA for any reason in the BHCGA’s sole and absolute discretion.

 

23.                              If, and in the event, any provision of this Agreement is determined to be invalid for any reason, it shall be severed and all other provisions not determined invalid shall continue with full force and effect.

 

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24.                              No failure by either party hereto, at any time, to require the performance by the other of any terms of this Agreement, shall in any way affect the right of either party to enforce such terms, nor shall any waiver, by either party of any terms hereof be taken or held to be a waiver of any other provisions of this Agreement. No waiver of any term or provision of this Agreement shall be effective unless the same is in writing, signed by the parties hereto.

 

25.                              This Agreement is entered into in the State of Iowa and shall be construed in accordance therewith, and all of the rights and obligations hereunder shall be determined in accordance with the laws of the State of Iowa.

 

This Agreement is signed and entered into as of the day and year first above written.

 

 

	
IOC BLACK HAWK   COUNTY
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By
    	
/s/ [ILLEGIBLE]
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
BLACK HAWK COUNTY GAMING ASSOCIATION
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By
    	
/s/ [ILLEGIBLE]
    	
 
    

 

5Exhibit 10.52

 

MANAGEMENT AGREEMENT

 

This Management Agreement is made and entered into this 10th day of June, 1994, by and between Gamblers Supply Management Company, a South Dakota corporation (hereafter “Operator”) and the Marquette Gaming Corporation, an Iowa non-profit corporation (hereafter “MGC”).

 

WHEREAS, Operator desires to operate and manage casino gambling on excursion gambling boats and related activities in and about Marquette, Iowa (hereafter “gaming operation”); and

 

WHEREAS, MGC desires to promote economic development in the  Marquette, Iowa vicinity, by conducting excursion gambling under applicable Iowa gaming laws and regulations and desires Operator to manage the gaming operation, all in accordance with the terms  and conditions of this Agreement as hereinafter set forth.

 

NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto agree as follows:

 

1.                                      Appointment of Operator and Manager.

 

A.                                    Acceptance.  Marquette Gaming Corporation hereby appoints Gamblers Supply Management Company, and Gamblers Supply Management Company hereby accepts such appointment, as the exclusive Manager and Operator of the gaming operation upon the terms and conditions hereinafter set forth.

 

 

B.                                    Operator Activities.  MGC acknowledges that the Operator is in the business of managing gaming operations and may in the future engage in such activity both for its own account and for others.  It is hereby expressly agreed that the Operator and its affiliates may engage in such activities and may manage or operate facilities other than those to be managed for MGC whether or not such other facility may compete directly or indirectly with those of MGC, except as prohibited in paragraph 4.

 

C.                                    Independent Contractor.  In the performance of its duties under this Agreement, the Operator shall occupy the position of an independent contractor with respect to MGC. Nothing contained herein shall be construed as making the parties hereto partners or joint venturers, nor, except as expressly otherwise provided herein, construed as making the Operator an agent or employee of MGC.

 

D.                                    Sponsoring Organization.  MGC agrees to act as the “qualified sponsoring organization” as that term is defined in Iowa Code Chapter 99F in connection with the license applications of MGC and Operator to the Iowa Racing and Gaming Commission (“IRGC”).

 

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2.                                      Conditions Precedent.  This Agreement and the appointment of Operator as exclusive operating and management agent is subject to the conditions precedent that;

 

A.                                    Prior to commencing operation, Operator and MGC shall obtain the required licenses from the Iowa Racing and Gaming Commission to conduct casino gambling and to operate an excursion gambling boat;

 

B.                                    Approval of this Agreement, amendments thereto, and other ancillary agreements by the Iowa Racing and Gaming Commission;

 

C.                                    The execution of a Dock Site Agreement by the City of Marquette, as Lessor, and Gamblers Supply Management Company, as Lessee, in the form attached hereto as Exhibit A, and incorporated herein by this reference;

 

D.                                    Operator obtaining a permit from the U.S. Army Corps of Engineers to moor the excursion and gambling boat in the Mississippi River channel at the dock site described in Exhibit A and operate the boat in areas defined as Pools 9 and 10.

 

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3.                                      Term.

 

A.                                    The term of this Agreement shall be for a period of  twenty-five (25) years from the date this Agreement is executed.  This Agreement may be terminated by Operator upon one hundred eighty (180) days written notice by certified mail to the registered agent of MGC, and upon such termination the Operator shall  pay to MGC in addition to all sums then accrued but not yet paid,  an amount equal to twenty-five percent (25%) of the payments  received by MGC from the Operator pursuant to this Agreement for the last full year of casino gambling prior to termination.  For purposes of this subparagraph, the “last full year” means the year ending on the last anniversary date of the commencement of casino gambling preceding the termination notice.  If’the termination notice is sent prior to the first anniversary date of the commencement of casino gambling, the payment shall be an amount equal to twenty-five percent (25%) of the payments received by MGC from the Operator pursuant to this Agreement for the first full year of casino gambling.

 

B.                                    This Agreement shall automatically terminate upon the happening of the following events:

 

i.                                          Cancellation of gambling or excursion boat licenses as a result of an unfavorable referendum after submission to the electorate;

 

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ii.                                       Non-renewal of licenses by the Iowa Racing and Gaming Commission; or

 

iii.                                    Termination of the Dock Site Agreement.  In the event this Agreement is terminated as a result of a voluntary termination of the Dock Site Agreement under paragraph 2A thereof, MGC shall receive that amount identified in paragraph 3A of this Agreement.

 

C.                                    After the commencement of casino gambling operations, if the Operator, for reasons which are in the Operator’s exclusive control, fails to regularly conduct casino gambling operations on an excursion boat which takes on passengers exclusively at Marquette, Iowa, for any continuous period of sixty (60) days or more, such inactivity shall, unless Operator resumes-regularly conducted gaming operations within thirty (30) days after written demand by MGC, constitute a voluntary termination of this Agreement by the Operator under paragraph 3A, above, and the Operator shall pay to MGC the amount provided in paragraph 3A.

 

4.                                      Exclusivity.  MGC agrees during the term of this Agreement that it shall not, without the prior written consent of Operator, enter into any agreement with any entity other than Operator to operate casino gambling or excursion gambling boat operations in Marquette, Iowa, or any other additional geographical area subject to the jurisdiction or control of the City of

 

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Marquette or MGC.  Operator agrees during the term of this Agreement it will not permit the boarding of passengers on any excursion gambling boat operated by it in Pool 9 or Pool 10 of the Mississippi River at any site other than the Marquette dock site.

 

5.                                      Duties and Authority of the Operator.  Subject to any limitations imposed by state law or regulations of the Iowa Racing and Gaming Commission, the Operator shall have the following duties and authority:

 

A.                                    Exclusive Authority.  The Operator shall have the sole and exclusive authority to fully and completely manage and operate all aspects of the excursion boat gambling operation, including, without limitation, casino gaming, concessions, personnel, entertainment, security, prices, terms and conditions of occupancy, hours of operation, casino gaming, excursion routes, and all other affairs associated with or related to the operation thereof.

 

B.                                    Establish Policies.  The Operator shall direct and establish policies and procedures for the Operator’s employees who will have direct responsibility for gaming operations.  The Operator shall have the sole discretion to establish terms and conditions of employment, and all other related policies.

 

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C.                                    Acquisition.  The Operator shall supervise and have control over the making and executing of all decisions concerning the acquisition of equipment, whether original or replacement, furniture, fixtures, supplies, and the purchase, lease, or other acquisition of the same.  The Operator shall have control over the making and executing of all decisions concerning the maintenance and repair of all gaming properties.

 

D.                                    Selection of Vendors.  The Operator shall select all vendors, suppliers, and independent contractors and subcontractors with respect to the gaming operation and shall hire, discharge, and supervise all labor and employees required for the operation and maintenance of the gaming operation, including on-site managers.

 

E.                                     Agreements.  The Operator may with the prior consent of MGC negotiate and execute in the name of and on account of MGC such agreements as the Operator deems necessary or advisable for the furnishing of utilities, services, concessions, and supplies for the maintenance, repair and operation of the gaming operation and such other agreements which may be beneficial to the excursion gambling boat operation or incidental to the matters for which the Operator is responsible hereunder.

 

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F.                                      Policy.  The Operator shall make all policy decisions and shall have control over the making of all the routine decisions in connection with the daily operations of the gaming operation.

 

G.                                    Compliance with Law.  The Operator shall use its best efforts to cause all things to be done, on behalf, in the name of and for the account of MGC, necessary to comply with any statute, ordinance, law, rule, regulation, or order of any governmental or regulatory body having jurisdiction over the matters contained herein.  The Operator shall apply for and attempt to obtain and maintain all licenses and permits required or advisable (in the Operator’s sole judgment) in connection with the management and operation of all gaming operations.

 

H.                                   Accounting System.  The Operator shall devise, establish, and supervise the operation of an accounting system for the gaming operation.

 

I.                                        Legal Actions.  The Operator may with the prior consent of MGC cause to be instituted, on behalf of and in the name of MGC, any and all legal actions or proceedings it deems necessary or advisable to protect and maintain the gaming operations as a commercially profitable business enterprise.

 

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J.                                        Insurance.  Operator shall obtain, maintain, and keep in full force and effect during the term of this Agreement comprehensive general public liability insurance covering any premises at which the Operator conducts any activities pursuant to this Agreement, operations, contracts, independent contractors, personal injury and other normal coverage as provided by the standard “broad form” liability policies against claims for bodily injury, death or property damage, occurring in, on or about the premises, with coverage limits of not less than $2,000,000.00 for bodily injury or death resulting from any one accident or occurrence, but shall be increased to five million dollars ($5,000,000.00), provided the cost per million for five million is not greater than the cost per million for coverage of two million dollars.  All insurance provided for herein shall name MGC as an additional name insured and be effected under a valid and enforceable policy or policies issued by insurers of recognized responsibility, licensed to do business in the State of Iowa and approved by MGC.  Certificates of said policies, providing for thirty (30) days notice to MGC prior to cancellation shall be delivered to MGC within twenty (20) days from the date of the beginning of the term of this Agreement.

 

K.                                   Payment of Taxes, Assessments and Other Charges. The Operator shall pay all taxes, personal and real, assessments

 

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and other charges of every kind and nature properly levied by any federal, state or local governmental authority with respect to the gaming operations, on behalf of and in the name of MGC.  The Operator’s responsibilities shall include furnishing such office space and/or other facilities to such regulatory authorities as may be required.

 

L.                                     Limitations.  Notwithstanding anything to the contrary, the Operator shall not be required to do, or cause to be done, anything for the account of MGC (i) which may make the Operator liable to third parties; (ii) which constitutes impermissible delegation of the duties and responsibilities of MGC, including, but not limited to, the purchase and construction of capital improvements, the sale or disposition of all or substantially all of MGC’s assets; or (iii) which may not be commenced, undertaken, or completed because of acts of God, strikes, governmental regulations or laws, acts of war, or other types of events beyond the Operator’s control whether similar or dissimilar to the foregoing.

 

M.                                 Excursion Gambling Boat.  The Operator shall furnish, at its sole expense, an excursion gambling boat with a minimum capacity of 750 passengers which will take on passengers exclusively at the leased premises described in the Dock Site Agreement.

 

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6.                                      Compensation Payable to MGC.  As compensation for the rights granted to the Operator under this Agreement, the Operator shall pay to MGC the following amounts:

 

A.                                    Twenty-five cents ($.25) per ticketed passenger embarking on any excursion gambling boat operated pursuant to this Agreement, payable in monthly installments, with payments for each month due on or prior to the 15th day of the following month; and

 

B.                                    Beginning with the fourth year of this Agreement, the additional sum of twenty-five cents ($.25) per ticketed passenger embarking on any excursion gambling boat operated pursuant to this Agreement, payable as provided in subparagraph A.; and

 

C.                                    For purposes of paragraphs 6A and 6B, “ticketed passenger” shall mean every person admitted during a calendar day on the excursion gambling boat, except necessary officials and employees of Operator working on the boat.

 

The parties agree that the fees set forth in this paragraph are the sole compensation to which MGC is entitled to under this Agreement. The Operator agrees that neither it nor its officers, directors, partners, and shareholders, if any, shall receive any share, percentage, or proportion of the money received for admissions to the excursion gambling boat.

 

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7.                                      Wagering Taxes and Admission Fees.  Operator shall pay any admission fees and wagering taxes imposed pursuant to law.

 

8.                                      License Applications.  MGC and Operator agree to cooperate in the preparation and filing of all documentation required by the Iowa Racing and Gaming Commission.  MGC and Operator will seek approval for a license to conduct the gaming operations under Iowa Code Chapter 99F, and under applicable rules and regulations of the IRGC. Operator shall pay for any  required application fees, bonds, and annual license fees.

 

9.                                      Reports, Accounting and Auditing.  The parties shall prepare and file all reports, including financial reports, as may be required by each of them, respectively, by applicable law and regulation of the Iowa Racing and Gaming Commission.  Each party shall keep such books and records and have audits performed from time to time as required of each of them, respectively, by applicable law and regulation.  Operator shall pay for any and all audit and accounting services for any reports, accountings, and audits required of either party by the IRGC.

 

Each party agrees that the IRGC and every other party to this Agreement shall have the right to audit each party’s records to the extent necessary to provide verification of compliance under this Agreement.  In the event any party is not in compliance with the terms of this Agreement, then in addition

 

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to all other remedies provided for by law, each party shall have the right to specifically enforce the terms and provisions of this Agreement.

 

10.                               Compliance with Laws.  The parties jointly agree and hereby accept the responsibility for compliance with the laws of Iowa and the rules promulgated by the IRGC from time to time, as well as the laws of any other applicable governmental agency. Each party shall have the right to contest by legal action or appeal any government law, regulation, order, judgment or fine imposed upon said party.  If a government agency imposes a certain amount of time within which a party is permitted the  opportunity to take some corrective or other action, said party shall not be in default under the terms of this Agreement until such time has passed and the corrective action has not been taken, or the party has initiated legal action or an appeal to obtain reversal of such requirement.

 

11.                               Default.  The occurrence of any one or more of the following events shall constitute a default by a party hereunder:

 

A.                                    Failure of a party to perform or comply with any of the duties or obligations imposed under the terms of this Agreement.

 

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B.                                    Suspension or revocation of any party’s license under Chapter 99F of the Iowa Code by the State of Iowa or IRGC.

 

C.                                    Any party’s adjudication as bankrupt or insolvent, or the appointment of a receiver or an assignment for the benefit of creditors by or on behalf of any party.

 

D.                                    Liquidation of dissolution of a party, which liquidation or dissolution is not caused by the other party.

 

E.                                     At no time during the term of this Agreement shall Operator cause such license (or renewal thereof) to be suspended, revoked or terminated for a period in excess of one hundred twenty (120) days.

 

If one of the foregoing acts occurs and is not remedied by the defaulting party within thirty (30) days after giving of written notice by any non-defaulting party of said default, then the non-defaulting party shall have all legal and equitable rights and remedies provided by law, including without limitation, termination of this Agreement, specific performance, or injunctive relief.  The remedies of the non-defaulting party shall be cumulative, and the exercise of any one or more remedies provided at law shall not be construed as a waiver of any other remedies.

 

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12.                               Indemnification. Operator shall indemnify, defend and hold harmless MGC, its officers, directors, employees, and agents, from and against any and all liabilities, obligations, claims, damages, causes of action, costs and expenses, incurred by, or asserted against MGC relating to any accident, injury to or death of any persons, or loss of or damage to property occurring on the excursion gambling boat or related to the gaming operation, compliance with applicable gaming laws and pay of any fees or taxes imposed with respect to gambling operations.

 

MGC shall indemnify, defend and hold harmless the Operator, its officers, directors, employees, and agents, from and against any and all liabilities, obligations, claims, damages, causes of action, costs and expenses, incurred by, or asserted against Operator by reason of any accident, injury to or death of any persons, or loss of or damage to property occurring as a result of any act or omission by MGC arising out of the gaming operation.

 

13.                               MGC Office Space. Operator agrees to provide MGC with office space sufficient for storage of MGC records and for board of directors meetings. MGC agrees that it will be responsible for maintaining its own employees, including but not limited to payment of compensation and all other legally imposed obligations.

 

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14.                               Entire Agreement.  This Agreement shall constitute the entire agreement and understanding between the parties and supersedes any prior agreement or understanding relating to the subject matter of this Agreement.  This Agreement may be modified or amended only by a written agreement signed by all the parties, and subject to the approval of the IRGC, if necessary.  The parties hereby covenant they will agree to any amendments to this Agreement which may be necessary or desirable in order to conform to federal tax law, Iowa statutes, or administrative rules, including future legislative enactments and rules, provided that such amendments do not materially alter the rights or obligations of either party hereunder.

 

15.                               Severability.  In the event any portion of this Agreement is determined by competent jurisdiction to be void, illegal, or otherwise unenforceable, all other terms of the Agreement shall remain in full force and effect and this Agreement shall be in full force as if the void, illegal, or otherwise unenforceable provisions did not exist.

 

16.                               Benefit.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective legal representatives, heirs, successors and assigns.

 

17.                               Assignment.  No party shall assign its rights or duties under this Agreement without the prior written consent of the

 

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remaining parties, and in no event shall any such assignment relieve the assigning party of its obligations under the Agreement; provided, however, that the Operator is specifically prohibited from subcontracting any of its duties relating to casino gambling.  Notwithstanding the foregoing, it is further understood and agreed that the Operator may be sold to any party, and that said sale shall not constitute a default under this paragraph or this Agreement.  Provided further, that the operator shall not unreasonably withhold its consent to the assignment by MGC of its rights under this Agreement to another “qualified sponsoring organization” under Iowa Code Chapter 99F if such assignment is approved by the IRGC and if such assignment does not alter the rights of the Operator hereunder.

 

 

	
 
    	
 
    	
GAMBLERS SUPPLY   MANAGEMENT COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/ [ILLEGIBLE]
    
	
 
    	
 
    	
Its
    	
President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
MARQUETTE GAMING   CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ [ILLEGIBLE]
    
	
 
    	
 
    	
Its
    	
President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ [ILLEGIBLE]
    
	
 
    	
 
    	
Its
    	
Secretary
    

 

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