Document:

EXHIBIT 10.6

 

CHARTER
PARTY

 

This Charter Agreement is
made as of January 20, 1995, between Caruthersville Riverboat Entertainment, Inc.,
a Missouri corporation, 207 Grandview Drive, Ft. Mitchell, Kentucky 41017 (“Owner”),
and Greenville Riverboat, LLC, a Mississippi limited liability company, 207
Grandview Drive, Ft. Mitchell, Kentucky 41017 (“Charterer”).

 

Owner lets, and Charterer
charters and takes for hire, the Lighthouse Riverboat, Hull No. 310 (“Vessel”),
subject to the following terms, conditions, and agreements:

 

SECTION
ONE

 

CONDITION
OF THE VESSEL

 

The Vessel is a newly
constructed riverboat of length overall of 210 feet, beam of 60 feet, mean
draft of six feet, with a capacity of at least 1400 persons. Charterer
represents to Owner that the Vessel has been examined by Charterer and found to
be seaworthy and otherwise in good condition with all appropriate or required
equipment. Acceptance or use of the Vessel by Charterer will be deemed to be an
acknowledgement that the Vessel is seaworthy, in good condition, and fit for
Charterer’s purposes. Charterer represents to Owner that the Vessel is of a
size, design, and capacity suitable for Charterer’s use.

 

SECTION
TWO

 

TERM
AND RENT

 

The term of this
agreement is nine (9) years commencing on the date hereof and ending January 19,
2004. Notwithstanding the foregoing, if Charterer obtains a suitable
replacement riverboat for the Vessel (the “Replacement Vessel”), this agreement
will terminate upon written notice by Charterer to Owner. If Charterer obtains
a Replacement Vessel and acquires new gaming equipment rather than relocating
the gaming equipment from the Vessel to the Replacement Vessel, the Owner will
purchase the gaming equipment on the Vessel on the same terms as would be
negotiated in an arm’s length transaction.

 

No rent shall be payable
hereunder from the date hereof through January 19, 1997. Thereafter, monthly
rent shall be payable in advance on the 20th day of each month, beginning January
20, 1997, in an amount necessary to amortize a $5 million loan in equal monthly
installments over a period of seven years with interest at the prime rate in
effect on January 20, 1997. Charterer shall also pay to Owner all applicable
sales and use

 

1

 

taxes, monthly, in
advance on or before the 20th day of each month, beginning January 20, 1997.

 

Charterer’s liability for
payment of rent shall not be abated or suspended for any loss or damage to the
Vessel or during any month or fraction of a month in which the Vessel is
unavailable for service because of periodic inspection and overhaul or during
periods in which the Vessel is laid up for maintenance or repairs.

 

SECTION
THREE

 

SECURITY
DEPOSIT

 

Charterer shall deposit
with Owner as security the sum of One Hundred Thousand Dollars ($100,000.00),
and Charterer agrees that this deposit shall be security for performance of
Charterer’s obligations under this agreement. At Owner’s option, this sum may
be applied to satisfy any obligation of Charterer that may be in default, but
neither the making of this deposit nor its use by Owner shall excuse Charterer
from performance of any such obligation. Any portion of such deposit that has
not been so applied by Owner shall be returned to Charterer at the termination
of this agreement.

 

SECTION
FOUR

 

LOCATION
OF VESSEL

 

The Vessel will be
temporarily berthed at Leevac Shipyards in Jennings, Louisiana. Thereafter, the
Vessel shall be permanently berthed at 201 N. Lakefront Drive in the City of
Greenville, County of Washington, State of Mississippi. Charterer shall pay all
costs and expenses associated with relocating the Vessel. Charterer shall not
remove the Vessel from or make any changes in the permanent berthing of the
Vessel without the Owner’s prior written consent. Except for relocating the
Vessel as provided above, Charterer shall not cruise or navigate the Vessel on
any waterway, it being understood that the Vessel is intended for use in the
same manner as would a stationary barge.

 

SECTION
FIVE

 

USE
AND OPERATION OF THE VESSEL

 

This agreement is and
shall be considered a demise charter. Owner retains no control, possession, or
command whatsoever of the Vessel during the term of this agreement, and
Charterer shall have exclusive possession, control, and command of the Vessel
during the term of this agreement, subject only to the express restrictions of
this agreement.

 

2

 

The Vessel shall be used
only for gaming in accordance with applicable law and for the sale of food and
beverages.

 

Charterer represents to
Owner that Charterer understands fully, and is experienced in, the use of the
equipment provided on the Vessel. Charterer further represents to Owner that
Charterer will not permit any person to operate any of the equipment on the
Vessel while under the influence of alcohol or narcotics.

 

Charterer shall not use,
and Charterer shall prevent the use of, the Vessel (i) in violation of any
federal, state or local statute, law, ordinance, rule or regulation; (ii) in
any dangerous, hazardous, or illegal manner; and (iii) in any manner or for any
purpose that would cause the insurance required by this Agreement to be
suspended, cancelled, inapplicable, or increased in cost.

 

SECTION
SIX

 

MAINTENANCE
AND INSPECTION

 

At its expense, Charterer
shall keep the Vessel in good operating condition and repair for use as a
cruising vessel and shall provide and pay for all necessary and appropriate
periodic inspections, maintenance, repairs, service and overhauls of the
Vessel. Charterer shall bear the expense of all replacement parts, repairs,
additions, and improvements to the Vessel and all of the same shall become the
property of the Owner and part of the Vessel.

 

To ascertain the
condition of the Vessel and to satisfy Owner that the Vessel is being properly
repaired and maintained in accordance with this agreement, Owner and the
authorized agents of Owner shall have the right at any reasonable time to
inspect or survey the Vessel at Owner’s expense. In connection with such
inspection, Charterer shall permit Owner to inspect the Vessel’s logs and
records, and shall furnish Owner with full information regarding any accidents
or damage to the Vessel. Such inspections shall not unreasonably interfere with
Charterer’s use of the Vessel.

 

SECTION
SEVEN

 

LIABILITY
FOR LOSS OR DAMAGE

 

Charterer assumes all
risk of loss of and damage to the Vessel from any cause. In the event of loss
or damage to the Vessel, Charterer, at the option of Owner, shall:

 

a. Place the Vessel in
good repair; or

 

3

 

b. Surrender the Vessel
to Owner and pay the second lowest of three shipyard repair estimates obtained
by Owner; or

 

c. If the Vessel is lost,
pay Owner in cash the current replacement value of the Vessel, whereupon this
agreement shall terminate.

 

Obligations of Charterer
established in this section shall be abated to the extent of insurance payments
received by Owner.

 

SECTION
EIGHT

 

RETURN
OF VESSEL

 

On expiration or earlier
termination of this agreement, Charterer shall return the Vessel to Owner by
delivering it to such location as Owner shall direct, free of all liens and
encumbrances and in good repair and in the same condition and with the same
equipment as when delivered to Charterer, ordinary wear and tear resulting from
proper use alone excepted.

 

SECTION
NINE

 

INSURANCE

 

At its expense, Charterer
shall obtain and maintain standard hull insurance providing full maritime
coverage, protection and indemnity insurance, liability and property damage
insurance, and such other insurance in such amounts and with such coverages as
Owner may reasonably determine. Charterer shall secure such coverage from
insurers who are satisfactory to Owner and all policies shall name Owner as an
additional insured and as sole loss payee. At Owner’s option, Owner shall apply
the proceeds of such insurance to repair or replace the Vessel or to satisfy
Charterer’s obligations hereunder. The proceeds of any personal liability or
property damage insurance shall be payable first to Owner to the extent of its
liability, if any, and the balance to Charterer. Charterer hereby appoints
Owner its attorney-in-fact to make claims for, adjust, settle, receive payment
of, and execute and endorse all documents, checks, or drafts for loss or damage
under any such insurance. Such policies shall provide the insurer to notify
Owner in writing not less than thirty days prior to any cancellation of any
such coverage. In the event of such cancellation, at Charterer’s expense Owner
may, but shall not be obligated to, obtain such coverage.

 

Charterer shall furnish
to Owner such information as will permit Owner to verify the insurance coverage
required by this Section Nine. Upon request by Owner, Charterer will deliver to
Owner a certificate or other written evidence from the insurer confirming the
terms and conditions of all coverage of the Vessel.

 

4

 

In the event that any
insurer gives notice of cancellation of any such insurance, before the
effective date of such cancellation Charterer shall obtain equivalent coverage
from another insurer acceptable to Owner. In the event Charterer is unable to
obtain such coverage before such date, Charterer shall immediately cease
operation and use of the Vessel until such time as such insurance is in place.

 

In the event of any
accident or damage to the Vessel, irrespective of the extent of such damage,
Charterer shall immediately notify Owner. Charterer shall make and file all
necessary and appropriate claims with all insurers and shall fully cooperate
with Owner and all insurers in the defense and investigation of any and all
suits and claims arising therefrom.

 

SECTION
TEN

 

TAXES

 

Charterer shall pay or
reimburse Owner for all property and other taxes or assessments levied by any
governmental authority on or in respect of the Vessel or its use during the
term of this agreement.

 

SECTION
ELEVEN

 

INVENTORIES
OF FUEL AND STORES

 

The Vessel shall be
delivered to Charterer with fuel and potable water tanks topped off.

 

Charterer shall return
the Vessel to Owner at the expiration of this agreement with the same fuel and
potable water on board, or pay Owner for any shortages at retail prices.

 

SECTION
TWELVE

 

ALTERATIONS

 

Charterer shall make no
alterations in or to the Vessel without the prior written consent of Owner. Any
such alterations permitted by Owner shall be at the sole expense of Charterer
and shall be the property of Owner.

 

SECTION
THIRTEEN

 

DEFAULTS

 

Charterer shall be in
default hereunder if:

 

(i) Charterer fails to pay
any rent or other amount due hereunder within ten days of the due date thereof;

 

5

 

(ii) Charterer fails to
perform any other obligation hereunder;

 

(iii) Any insurance
required under this agreement is cancelled and Charterer fails to secure a
replacement therefor within ten days after such cancellation;

 

(iv) Any proceedings
under any bankruptcy, insolvency, or receivership law are filed by or against
Charterer, and such proceedings, if involuntary, are not dismissed within sixty
days;

 

(v) Charterer makes an
assignment for the benefit of creditors or permits or suffers any distress,
attachment, levy or execution against any property of Charterer; or

 

(vi) The Vessel or any
part or portion thereof is lawfully removed from Charterer’s or its agents’
possession or control pursuant to government authority. In any such event,
Owner at its option and without notice or demand may cancel this agreement,
whereupon all of Charterer’s rights hereunder will cease; summarily repossess
and seize the Vessel, with or without process of law; or exercise any and all
other rights and remedies hereunder or under law or equity. Charterer expressly
authorizes Owner and its agents to summarily repossess the Vessel and expressly
waives all claims arising out of such repossession. Owner’s exercise of one or
more of these rights or remedies shall not be deemed to be an election of
remedies or prejudice Owner from exercising any other rights or remedies.

 

SECTION
FOURTEEN

 

MARITIME
LIENS

 

Charterer shall not incur
any maritime liens or other encumbrances on the Vessel other than for salvage,
and shall not remove or deface any notice that may be posted on the Vessel by
Owner as evidence of Owner’s interest.

 

SECTION
FIFTEEN

 

INDEMNITY

 

Charterer shall indemnify
and hold harmless Owner from and against any and all claims, demands, actions,
proceedings, damages, losses, liabilities and expenses, including reasonable
attorney fees, arising from or connected with (i) any present, future, latent,
or other defects, in any form, character, or condition of the Vessel or any
part or portion thereof; (ii) any violation by Charterer of any provision of
this Agreement; (iii) any fines, forfeitures, penalties, or confiscation of or
involving the Vessel; (iv) any damage, loss, theft, or destruction of the
Vessel or any part or portion thereof; (v) the delivery,

 

6

 

possession, ownership,
location, installation, control, maintenance, repair, return, use, condition or
operation of the Vessel; (vi) any acts or omissions of Charterer or its agents
or employees; (vii) any person or property damaged by or in the Vessel.

 

SECTION
SIXTEEN

 

ASSIGNMENT

 

Charterer shall not
assign or sublet Charterer’s interest in the Vessel without the prior written
consent of Owner. Owner may assign Owner’s interest under this agreement by
written notice to Charterer.

 

SECTION
SEVENTEEN

 

ATTORNEY
FEES

 

In the event any action
is filed in relation to this agreement, the unsuccessful party in the action
shall pay to the successful party, in addition to all other sums that either
party may be called upon to pay, a reasonable sum for the successful party’s
attorney fees.

 

SECTION
EIGHTEEN

 

LIMITATION
OF WARRANTY AND REMEDY

 

OWNER HAS NOT MADE AND
DOES NOT MAKE ANY REPRESENTATIONS, WARRANTY, OR COVENANT, EXPRESS OR IMPLIED,
WITH RESPECT TO THE CONDITION, QUALITY, DURABILITY, OR FITNESS OR SUITABILITY
OF THE VESSEL FOR CHARTERER’S INTENDED USE OF THE VESSEL. OWNER WILL NOT BE
LIABLE TO CHARTERER FOR ANY LIABILITY, LOSS, OR DAMAGE, INCLUDING CONSEQUENTIAL
DAMAGES, CAUSED OR ALLEGED TO BE CAUSED DIRECTLY OR INDIRECTLY BY THE VESSEL,
BY ANY INADEQUACY OF, OR DEFECT IN, OR ANY INCIDENT IN CONNECTION WITH, THE
VESSEL.

 

In witness whereof, each
party has caused this agreement to be executed as of the date indicated above.

 

	
   

  	
   

  	
  OWNER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CARUTHERSVILLE
  RIVERBOAT ENTERTAINMENT, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  by:

  	
  /s/ William J. Yung

  
	
   

  	
   

  	
  William J. Yung,
  President

  

 

7

 

	
   

  	
  CHARTERER:

  
	
   

  	
   

  
	
   

  	
  GREENVILLE
  RIVERBOAT, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  WIMAR TAHOE
  CORPORATION,

  MANAGER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ William C. Beegle

  
	
   

  	
   

  	
   

  	
  William C. Beegle 

  Vice President

  

 

8EXHIBIT 10.6(A)

 

CHARTER PARTY 

FIRST AMENDMENT

 

On January 20, 1995,
Caruthersville Riverboat Entertainment, Inc. a Missouri corporation, 207
Grandview Drive, Ft. Mitchell, KY 41017 (“Owner”) and Greenville Riverboat,
LLC, a Mississippi limited liability company, 207 Grandview Drive, Ft.
Mitchell, KY 41017 (“Charterer”) entered into a Charter Party Agreement. The
parties wish to amend this agreement effective January 19, 2004, as follows:

 

	
  1.

  	
   

  	
  Section two of the
  original agreement provided that the agreement would terminate on January 19,
  2004. The parties desire to extend the term of the agreement for an
  additional five years, until January 19, 2009.

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Section two of the
  original agreement provided that the monthly rent would be “an amount
  necessary to amortize a $5 million loan in equal monthly installments over a
  period of seven years with interest at the prime rate in effect on January 20,
  1997.” The parties desire to amend the agreement to provide for monthly rent
  of $78,555.30 plus applicable sales and use taxes.

  

 

All other terms and
provisions of the original agreement are to remain in force.

 

In witness whereof, each
party has caused the agreement to be executed this 24 day of September, 2003.

 

	
   

  	
  Owner: 

  
	
   

  	
  Caruthersville
  Riverboat Entertainment, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
  /s/ William J. Yung

  
	
   

  	
   

  	
  William J. Yung,
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  Charterer: 

  
	
   

  	
  Greenville Riverboat,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  by:

  	
  Wimar Tahoe Corporation

  
	
   

  	
   

  	
  Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
  /s/ William J. Yung

  
	
   

  	
   

  	
  William J. Yung,
  President

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