Document:

Exhibit 10.16

 

FIRST AMENDMENT TO GROUND LEASE

 

THIS FIRST AMENDMENT TO GROUND LEASE (this “First Amendment”) is entered into this 30th day of June, 1995 by and between TEXAS GAMBLING HALL & HOTEL, INC., a Nevada corporation (“Landlord”) and STATION CASINOS, INC., a Nevada corporation (“Tenant”).

 

WHEREAS, Landlord and Tenant entered into that certain Ground Lease and Sublease dated June l, 1995 (the “Original Lease,” and as amended hereby, the “Lease”); and

 

WHEREAS, Landlord and Tenant desire to amend the Original Lease as provided herein:

 

NOW, THEREFORE, in exchange for the mutual promises and covenants contained herein, the sufficiency of which is hereby acknowledged by each of the undersigned, the undersigned parties agree as follows:

 

1.             The Original Lease is hereby amended by deleting Article II(A)(4) in its entirety and replacing in lieu thereof the following:

 

“4.  Commencement Date.  “Commencement Date” shall mean the date set forth in Article I(B) on page 1 of the Special Lease Provisions.”

 

2.             The original Lease is hereby amended by deleting Article I(c)(2)(2) in its entirety and replacing in lieu thereof the following:

 

“(2)  Notwithstanding the above, on the first day of the sixth (6th) year of each of the first six (6) Rental Periods, the Rent as determined in the paragraph (1) above shall be increased by multiplying the Rent then in effect by the Cost of Living Factor as defined in Section II.A.5 below and such increased Rent shall be payable for the remaining five (5) years of the then current Rental Period.”

 

3.             The original Lease is hereby amended by deleting the first sentence of Article II(A)(5) in its entirety and replacing in lieu thereof the following:

 

“The “Cost of Living Factor” for any date during a given Rental Period shall be a fraction whose numerator is the index figure for the calendar month immediately preceding that date as stated in the Consumer Price Index for All Consumers (1982-1984 = 100) specified for All Items relating to Los Angeles-Long Beach-Anaheim published by the Bureau of Statistics of the United States Department of Labor and whose denominator is the index figure for such Consumer Price Index for the calendar month immediately preceding such Rental Period; provided, however, that the Cost of Living Factor shall never be less than one (1).”

 

4.             The Original Lease is hereby amended by deleting the fifth (5th) sentence of Article VII(A) and replacing in lieu thereof the following:

 

 

“The aggregate amount secured by all such deeds of trust shall not exceed eighty-five percent (85%) of the fair market value of this Lease and all buildings and other improvements constructed on the Premises during the Term; provided, however, that the foregoing restriction imposed in this sentence shall survive only for so long as both of the following conditions are met:  (i) Texas Gambling Hall & Hotel, Inc. or an affiliated entity is landlord under this Lease, and (ii) no more than fifty percent (50%) of the ownership of Texas Gambling Hall & Hotel, Inc. (or such affiliated entity) has been sold or conveyed to a party or parties other than the following:

 

(a)           Frank J. Fertitta, Jr.;

(b)           any spouse, sibling or lineal descendant of Frank J. Fertitta, Jr. and any spouse of any such sibling or lineal descendant;

(c)           trusts in which a majority of the trustees or in which beneficiaries having a beneficial interest in a majority of the trust income are parties described in (a) or (b) above or (d) below; or

(d)           corporations, partnerships, joint ventures and other entities, a majority of the ownership interests of which are owned by one or more of the parties described in (a), (b) and (c) above.”

 

5.             The Original Lease is hereby amended by deleting in its entirety Subsection D of Article VII and all references in the Original Lease to Subsection D of Article VII shall be without effect.

 

6.             Except as amended herein, the Lease remains in full force and effect, and Landlord and Tenant ratify the Lease as amended herein.

 

7.             All capitalized terms used in this First Amendment but not defined herein shall have the meaning ascribed thereto in the Original Lease.

 

8.             This First Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

 

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WITNESS THE EXECUTION hereof by each of the undersigned as of the date first set forth above.

 

 

	
TEXAS   GAMBLING HALL & HOTEL, INC., a Nevada corporation
    	
 
    	
STATION   CASINOS, INC., a Nevada corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:   
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
Name:
    	
 
    

 

3Exhibit 10.17

 

LEASE AMENDMENT NO. 1

 

WHEREAS, Station Casinos, Inc. (“Lessee”) and Texas Gambling Hall & Hotel, Inc. (“Landlord”) have entered in a Ground Lease and Sublease dated June 1, 1995 (the “Lease”);

 

AND WHEREAS, Lessee subsequently assigned its interest in the Lease to Texas Station, Inc. (“Tenant”) in an Assignment, Assumption and Consent Agreement dated July 6, 1995;

 

WHEREAS, Landlord and Lessee agreed and intended as of such date that the appraised value of the lease be the higher of the fair market value of the land or the present value of lease payments;

 

WHEREAS, Landlord and Leasee received advice from Carlsmith, Ball, Wichman, Case & Ichiki that the lease language is not inconsistent with that intent; and

 

WHEREAS, in connection with Landlord’s accommodating requests for asset transfers needed by Lessee and Tenant for its gaming license needs, Landlord expressed a desire to memorialize the intent by amending the Lease;

 

NOW, THEREFORE, the parties to the Lease agree to amend the Lease by adding a sentence at the end of paragraph I.2. in Article I thereof as follows:

 

“Notwithstanding the foregoing, the market value of the Landlord’s interest shall not be deemed to be lower than the present value of the income stream remaining on the Lease.”

 

By executing below, the parties agree to this Amendment No. 1 to the Lease this 23rd day of December, 1996.

 

	
 
    	
 
    	
By:
    	
/s/   Glenn C. Christenson
    
	
 
    	
 
    	
 
    	
Texas   Station, Inc.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   W. J. Bullard
    
	
 
    	
 
    	
 
    	
Texas   Gambling Hall & Hotel, Inc.Exhibit 10.18

 

SECOND AMENDMENT TO GROUND LEASE

 

This SECOND AMENDMENT TO GROUND LEASE (this “Second Amendment”) is entered into as of the 7th day of January, 1997 by and between TEXAS GAMBLING HALL & HOTEL, INC., a Nevada corporation (“Landlord”), and TEXAS STATION, INC., a Nevada corporation (“Tenant”).

 

Recitals

 

A,            Landlord and Station Casinos, Inc. entered into that certain Ground Lease dated June 1,  1995, as amended by that certain First Amendment to Ground Lease dated June 30, 1995 by and between Landlord and Station Casinos, Inc., and assigned by Station Casinos, Inc. to Tenant by that certain Assignment, Assumption and Consent Agreement (Ground Lease) dated as of July 6, 1995 (the “Original Lease” and, as amended by this Second Amendment, the “Lease”).

 

B.            Landlord and Tenant desire to amend the Original Lease as provided herein.

 

Agreement

 

NOW, THEREFORE, in exchange for the mutual promises and covenants contained herein, the sufficiency of which is hereby acknowledged by each of the undersigned, the undersigned parties agree as follows:

 

1.             The Original Lease is hereby amended by insertion of the following as Article XIII(Z):

 

Z.             Landlord Accommodations.

 

1.             Defined.  Landlord and Tenant acknowledge that Tenant’s improvements and operations on the Land have been and will continue to be subject to various regulatory requirements applicable to the gaming industry, and that as a result of such requirements, Tenant or certain gaming regulatory agencies may request that Landlord take, or refrain from taking, certain actions in order to accommodate Tenant’s development and operation of gaming facilities (collectively, “Landlord Accommodations”).  The result of such Landlord Accommodations may even limit or dictate to whom Landlord can or cannot transfer the Property, enter into loans therewith or other activities which restrict the normal operation of income-producing property, thereby potentially impacting the value.  The compliance with any such request of Landlord Accommodation shall be in the sole discretion of the Landlord.  Any granting or performance by Landlord of any Landlord Accommodation shall be conditioned upon Tenant’s agreement to Subsections (2) and (3) of this Section XIII(Z).

 

2.             Reimbursement of Expenses.  Tenant shall promptly reimburse Landlord, upon written demand and presentation to Tenant of appropriate documentation, for any and all actual costs, direct and indirect, which Landlord incurs in the granting or performance of Landlord Accommodations.  Such reimbursable costs shall include, but

 

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not be limited to, reasonable attorneys’ fees and a reasonable allocation of Landlord’s internal management expenses.

 

3.             Landlord’s Sale of Land.  In the event Landlord or The Frank J. Fertitta and Victoria K. Fertitta Family Trust (“Designated Beneficiary”) contract to sell, transfer or convey the Land, Tenant shall reimburse Landlord for any Impairment of Value (as defined herein) of the Land which is caused directly or indirectly by Landlord Accommodations.

 

(a)          Determination of Impairment of Value.  “Impairment of Value” shall mean the difference, if any between the contracted purchase price and the purchase price ultimately paid at closing; provided, however, in no event shall the contracted purchase price, far purposes of this calculation, exceed the fair market value of the Land as determined by Section I(I) (2) of the Lease.  In the event that a sale or transfer was terminated and that termination was “caused directly or indirectly by Landlord Accommodations,” the Impairment of Value shall equal the contracted purchase price.

 

(b)          Burden of Proof.  The Impairment of Value shall be deemed to be “caused directly or indirectly by the Landlord Accommodations” if, and only if, Landlord can prove that Impairment of Value was attributable to one of the following:

 

(i)           restrictions imposed as a result of Landlord Accommodations;

 

(ii)          Landlord or Designated Beneficiary’s inability to consummate a sale or conveyance of the Land in a timely manner caused by the Landlord’s Accommodations; or

 

(iii)         costs and expenses attributable to compliance with and seeking approvals related to Landlord Accommodations.

 

(c)           Right of First Refusal.  In the event the Impairment of Value is more than five percent (5.0%) of the contracted purchase price, Landlord’s sale shall be subject to a right of first refusal by Tenant to purchase the Property at the contracted purchase price, which right of first refusal will be deemed to be waived unless exercised in writing within thirty (30) days of Landlord’s notice to Tenant asserting an Impairment of Value and requesting payment therefore.

 

3.             Automatic Termination of This Section XIII(Z).  This Lease shall be automatically amended, with no farther execution of documents or other actions required, to delete this Section XIII(Z) in its entirety immediately upon the first to occur of any of the following:

 

(i)           Tenant consummates an acquisition of the Landlord’s Interest;

 

(ii)          The Designated Beneficiary no longer has any direct or indirect interest in the Land; or

 

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(iii)         The date on which the Landlord Accommodations are no longer in effect.

 

2.             The terms and provisions of this Second Amendment shall be applicable only to the undersigned Landlord and Tenant and may not be assigned, transferred or conveyed to any other party whatsoever.

 

3.             Except as amended herein, the Lease remains in full force and effect, and Landlord and Tenant ratify the Lease as amended herein.

 

4.             All capitalized terms used in this Second Amendment and not defined herein shall have the meaning ascribed thereto in the Original Lease.

 

5.             This Second Amendment shall be governed by and construed in accordance with the laws of the State of Nevada.

 

6.             This Second Amendment may be executed in any number of counterparts, each of which shall be-deemed an original and all of which together shall constitute one and the same instrument.

 

WITNESS THE EXECUTION HEREOF by each of the undersigned, to be effective as of the date first set forth above.

 

 

	
LANDLORD
    	
 
    	
TENANT
    
	
 
    	
 
    	
 
    
	
Texas   Gambling Hall & Hotel, Inc., a Nevada corporation
    	
 
    	
Texas   Station, Inc., a Nevada corporation
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   W.J. Bullard
    	
 
    	
By:
    	
/s/   Scott M Nielson
    
	
Name:
    	
William   J. Bullard
    	
 
    	
Name:
    	
Scott   M Nielson
    
	
Title:
    	
Secretary
    	
 
    	
Title:
    	
Secretary
    

 

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