Document:

exv4w9

Exhibit 4.9

EXECUTED VERSION

 

SUBORDINATED DEPOSIT AGREEMENT

BY AND BETWEEN

DEUTSCHE BANK CONTINGENT CAPITAL LLC V

AND

DEUTSCHE BANK AKTIENGESELLSCHAFT

DATED AS OF May 9, 2008

 

Subordinated Deposit Agreement

 

          This Subordinated Deposit Agreement (the “Agreement”), dated May 9, 2008, is entered into
between Deutsche Bank Aktiengesellschaft, a German stock corporation (the “Bank”), and Deutsche
Bank Contingent Capital LLC V, a Delaware limited liability company (the “Company”).

          WHEREAS, pursuant to the LLC Agreement (as defined herein), the Company will issue the Class B
Preferred Securities (as defined herein) to Deutsche Bank Contingent Capital Trust V (the “Trust”);

          WHEREAS, pursuant to the Trust Agreement (as defined herein), the Trust will issue the Trust
Preferred Securities (as defined herein) with the same terms and in the same amount as the Class B
Preferred Securities;

          WHEREAS, the Company will use the proceeds from the issuance of the Class B Preferred
Securities to purchase the Initial Obligation (as defined herein) from the Bank;

          WHEREAS, amounts paid by the Bank pursuant to the Initial Obligation will be used by the
Company to pay capital payments on the Class A Preferred Security (as defined herein), the Class B
Preferred Securities and the Company Common Security (as defined herein) in accordance with the LLC
Agreement;

          WHEREAS, the Company may from time to time defer capital payments on the Class B Preferred
Securities pursuant to and in accordance with the LLC Agreement;

          NOW, THEREFORE, the parties agree as follows:

          Section 1. Certain Definitions.

          “Account” means a deposit account in the name of the Company and maintained by the Bank
subject to the terms of this Agreement.

          “Account Moneys” means all monies from time to time deposited in the Account pursuant to
Clause 2 (Deposit of Account Moneys), together with all property from time to time representing the
same, together with any accrued interest thereon.

          “Agreement” has the meaning specified in the preamble.

          “Arrears of Payments” means Capital Payments, the payment of which has, in accordance with the
deferral provisions of the Class B Preferred Securities, been deferred, and which thereupon
constitute cumulative arrears of Capital Payments.

          “Bank” has the meaning specified in the preamble.

          “Capital Payments” means the periodic distributions on the Class B Preferred Securities in
accordance with the LLC Agreement.

2

 

          “Company” has the meaning specified in the preamble.

          “Class A Preferred Security” means the single security in the Company designated as the Class
A Preferred Security representing an ownership interest in the capital of the Company, with a
liquidation amount of $25 per Class A Preferred Security.

          “Class B Preferred Guarantee” means the agreement by Deutsche Bank AG, as Guarantor, with The
Bank of New York, as Class B Preferred Guarantee Trustee, for the benefit of the holders of the
Class B Preferred Securities to guarantee payment, on a subordinated basis, of certain payments on
the Class B Preferred Securities.

          “Class B Preferred Securities” mean the class of securities in the Company representing
preferred limited liability company interests in the Company, with a liquidation amount of $25 per
Class B Preferred Security.

          “Company” has the meaning specified in the preamble.

          “Guarantees” means the Trust Preferred Guarantee and the Class B Preferred Guarantee,
collectively.

          “Initial Obligation” means the subordinated obligation of the Bank acquired by the Company
using the proceeds from the issuance of the Class B Preferred Securities.

          “Interest Payment Date” means March 30, June 30, September 30 and December 30 of each year,
commencing on June 30, 2008.

          “Junior Securities” means (i) ordinary shares of common stock of the Bank, (ii) each class of
preference shares of the Bank ranking junior to Preferred Tier 1 Securities of the Bank, if any,
and any other instrument of the Bank ranking on parity with such preference shares or junior
thereto and (iii) preference shares or any other instrument of any subsidiary of the Bank subject
to any guarantee or support agreement of the Bank which guarantee or support undertaking ranks
junior to the obligations of the Bank under the Guarantees.

          “Liability” means any loss, damage, cost, charge, claim, demand, expense, penalty, judgment,
demand, action proceeding or other liability whatsoever (including, without limitation, in respect
of taxes, duties, levies, imposts and other charges) and including any value added tax or similar
tax charged or chargeable in respect thereof and legal fees and expenses on a full indemnity basis.

          “LLC Agreement” means the limited liability company agreement of the Company dated as of April
24, 2008, as amended and restated as of May 9, 2008 and as the same may be further amended from
time to time in accordance with its terms.

          “Payment Date” means March 30, June 30, September 30 and December 30 of each year, commencing
on June 30, 2008.

3

 

          “Person” means any individual, corporation, association, partnership (general or limited),
joint venture, trust, estate, limited liability company, or other legal entity or organization.

          “Preferred Tier 1 Securities” means (i) each class of the most senior ranking preference
shares of the Bank, if any, and (ii) preference shares or any other instrument of any subsidiary of
the Bank subject to any guarantee or support agreement of the Bank which guarantee or support
undertaking ranks on parity with the obligations of the Bank under the Guarantees.

          “Trust” has the meaning specified in the preamble.

          “Trust Agreement” means the trust agreement of the Trust dated as of April 24, 2008, as
amended and restated as of May 9, 2008 and as the same may be further amended from time to time in
accordance with its terms.

          “Trust Preferred Guarantee” means the agreement by Deutsche Bank AG, as Guarantor, with The
Bank of New York, as Trust Preferred Guarantee Trustee, for the benefit of the holders of the Trust
Preferred Securities to guarantee the payment, on a subordinated basis, of certain payments on the
Trust Preferred Securities.

          “Trust Preferred Securities” means the Trust Preferred Securities issued by the Trust.

          Clause headings are for reference purposes only and shall not affect the construction or
effect of any provision hereof.

     In this Agreement, unless the context otherwise requires:

	 	(a)	 	references to a party include references to the successors or assigns (immediate or
otherwise) of that party;
	 
	 	(b)	 	references to “person” shall include any firm or body of persons whether corporate or
incorporate and any person deriving title therefrom and any of their respective successors
or assigns; and
	 
	 	(c)	 	words importing the singular number alone shall include the plural number and vice
versa.

Deposit of Account Moneys

	2.1	 	On each Interest Payment Date or other date when the Company receives payments of interest on
the Initial Obligation which, as a result of the deferral of Capital Payments in accordance
with the LLC Agreement, exceed the Capital Payments declared (or deemed declared) and paid on
the Class B Preferred Securities on the corresponding Payment Date, the Account, if not
already open at such time, shall be opened and such excess shall be deposited by the Company
into the Account as Account Moneys pursuant to this Agreement.

4

 

Payment of Amounts

	3.1	 	At the time when the Company is required under the terms of the LLC Agreement to pay Arrears
of Payments on the Class B Preferred Securities, the Bank shall release Account Moneys, for
value on the date such Arrears of Payments are paid on the Class B Preferred Securities, in an
amount equivalent to the amount of the Arrears of Payments then required to be and being paid.

Treatment of Account Moneys

	4.1	 	The Bank shall not make any deductions from the Account by virtue of any right of set-off,
lien, consolation, merger or claim which it may have against the Company. The Bank shall not
release any of the Account Moneys, except as provided in this Agreement.
	 
	4.2	 	The Bank shall pay interest on the cash balance in the Account standing to the credit of the
Company at a rate of 0.75% per annum, compounded annually. Any interest earned or profit
generated from the Account (subject to any deduction of tax at source and any bank or other
charges (including without limitation any deductions made pursuant to clauses hereof and
properly charged to the Account in accordance with this Agreement)) shall be for the account
of the Company, and shall be paid in full to the Company on each Payment Date when such
amounts are held in the Account.
	 
	4.3	 	The Company and the Bank agree that all Account Moneys shall be (i) subordinated in right of
payment to the prior payment in full of all indebtedness and other liabilities of the Bank to
its creditors (including subordinated liabilities), except those which by their terms rank on
parity with or are subordinated to the Bank’s obligations under this Subordinated Deposit
Agreement, (ii) on parity with the most senior ranking preference shares of the Bank, if any,
and any obligations or instruments of the Bank which by their terms rank on parity with such
preference shares and (iii) senior to the Junior Securities.

Representations and Warranties

	5.1	 	The Company hereby represents and warrants to the Bank that (i) it is a company duly
organized and in good standing in every jurisdiction where it is required so to be, (ii) it
has the power and authority to sign and to perform its obligations under this Agreement, (iii)
this Agreement is duly authorized and executed and is its legal, valid and binding obligation,
(iv) any consent, authorization or instruction required in connection with its execution and
performance of this Agreement has been provided by any relevant third party, (v) any act
required by any relevant governmental or other authority to be done in connection with its
execution and performance of this Agreement has been or will be done (and will be renewed if
necessary), and (vi) its performance of this Agreement will not violate or breach any
applicable law, regulation, contract or other requirement.

5

 

Liability of the Bank

	6.1	 	The Bank shall not be liable or responsible for any Liabilities or inconvenience which may
result from anything done or omitted to be done by it in accordance with the provisions of
this Agreement and shall bear no obligation or responsibility to any person in respect of the
operation of the Account or its application of the Account Moneys unless such liability arises
as a result of gross negligence, fraud or willful default on the part of the Bank. In
particular, but without limiting the generality of the foregoing, the Bank shall not be liable
for any failure to maximize the amount of interest or other amounts earned on all or part of
the Account Moneys. Under no circumstances shall the Bank be liable for any consequential or
special loss, or indirect, consequential or punitive damages, however caused or arising
(including loss of business, goodwill, opportunity or profit) even if advised of the
possibility of such loss or damage.
	 
	6.2	 	No implied duties or obligations shall be imposed on the Bank by virtue of its entering into
this Agreement or its agreeing to provide the services hereunder. The Bank shall not be
obligated to perform any additional duties unless it shall have previously agreed to perform
such duties. The Bank shall not be under any obligation to take any action under this
Agreement that it expects will result in any expense to, or liability for, it, the payment of
which is not, in its opinion, assured to it within a reasonable time.
	 
	6.3	 	The Company shall indemnify and hold harmless the Bank for an amount equal to any and all
Liabilities or obligations of any kind whatsoever (and any interest thereon) (including, but
not limited to, all properly incurred costs, charges and expenses paid or incurred in
disputing or defending any of the foregoing) that may be imposed on or incurred by the Bank in
connection with any action, claim or proceeding of any kind brought or threatened to be
brought against it as a result of its acting hereunder or as a result of any action taken or
omitted to be taken by it before the date of this Agreement in preparation for acting
hereunder, provided that the Company shall not have any obligation to indemnify the
Bank or any of its officers and employees or any other person for any claims arising in
consequence of the gross negligence, fraud or willful default on the part of the Bank.
	 
	6.4	 	The Bank shall be entitled to rely on, and shall not be liable for acting upon, and shall be
entitled to treat as genuine and as the document it purports to be, any instruction, letter,
notice, opinion, advice, or other document furnished to it by the Company or any lawyer or
other expert in whatever format and by whatever means, including electronic, and believed by
the Bank, in its absolute discretion, to be genuine and to have been signed and presented by
the proper person or persons.
	 
	6.5	 	The indemnities contained in this Clause 6 shall survive the termination of this Agreement.

6

 

Modification

	7.1	 	No variation of this Agreement (or any document entered into pursuant to this Agreement)
shall be valid unless it is in writing and signed by or on behalf of the Company and the Bank.

Notices

	8.1	 	Any notice under this Agreement shall be in writing and signed by or on behalf of the party
giving it and may be served by leaving it or sending it by facsimile, pre-paid recorded
delivery or registered post to the address and for the attention of the relevant party set out
in Clause 8.2 (or as otherwise notified form time to time hereunder). Any notice to be served
by facsimile or post shall be deemed to have been received:

	 	(a)	 	in the case of facsimile, on confirmation of transmission being received by
the sending machine; and
	 
	 	(b)	 	in the case of recorded delivery or registered post, 48 hours from the date
of posting.

	8.2	 	The addresses of the parties for the purpose of Clause 8.1 are as follows:

Bank:

Deutsche Bank AG

Theodor-Heuss-Allee 70

D-60486 Frankfurt am Main

Germany

Telecopy No.: (+49) 69 910-35092

Company:

Deutsche Bank Contingent Capital Trust V

60 Wall Street

New York, New York 10005

Telecopy No.: (732) 460-7125

Attention: Treasury (mail stop NYC 60-4011)

with a copy to:

Deutsche Bank Contingent Capital Trust V

c/o Deutsche Bank Trust Company Delaware

1011 Centre Road, Suite 200

Wilmington

Delaware 19805

7

 

Termination

	9.1	 	If there are no outstanding Account Moneys, the Account may be closed; provided,
however, that this Agreement shall not be terminated except in accordance with the
next paragraph.
	 
	9.2	 	Following redemption of the Class B Preferred Securities and the payment of all outstanding
Account Moneys in accordance with this Agreement, the Bank shall following such payment close
the Account and this Agreement shall terminate.

Resignation

	10	 	The Bank shall not have the right to resign its appointment hereunder.

Counterparts

	11	 	This Agreement may be entered into in any number of counterparts and by the parties to it on
separate counterparts, each of which, when executed, shall be an original, but all the
counterparts shall together constitute one and the same instrument.

Whole Agreement

	12	 	This Agreement represents the whole agreement between the parties in relation to its subject
matter and supersedes all prior representations, promises, agreements and understandings.

Other

	13.1	 	This Agreement is governed by, and shall be construed in accordance with, the laws of
Germany.
	 
	13.2	 	The parties to this Agreement hereby irrevocably submit for the benefit of the non-exclusive
jurisdiction of the local courts of Frankfurt, Germany and waive any objection to any
proceedings in relation to this Agreement (“Proceedings”) in such courts, whether on the
ground of venue or on the ground that the Proceedings have been brought in an inconvenient
forum. This submission is for the benefit of the Bank and shall not limit its right to take
Proceedings in any other court of competent jurisdiction, nor shall the taking of Proceedings
in one or more jurisdictions preclude the taking of Proceedings in any other jurisdiction
(whether concurrently or not).
	 
	13.3	 	In the event that one or several provisions of this Agreement shall be invalid or
unenforceable, or if this Agreement turns out to contain a gap, the validity and
enforceability of the other provisions of this Agreement shall not be affected thereby. In
such case, the parties shall undertake to agree on such valid and enforceable provision or on
provisions filing the gap in this Agreement which are as close as possible to the original
commercial intention of the parties.

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	13.4	 	The Bank shall maintain a book-entry registration system with respect to the Account (the
“Register”). A transfer of the right to payment of principal and interest with respect to the
Account will be effective only if transferred through a book-entry reflected in the Register. The
Register will record the registered owners of the Account.

9

 

IN WITNESS WHEREOF the parties hereto have caused this Agreement to be duly executed as of the day
and year first before written.

	 	 	 	 	 
	DEUTSCHE BANK CONTINGENT CAPITAL LLC V
	 
	 	 	 	 
	By: 

Name:

	 	/s/ Helmut Mannhardt
 

Helmut Mannhardt
	 	 
	Title:

	 	Vice President	 	 
	 
	 	 	 	 
	By:

	 	/s/ Anjali Thadani	 	 
	 

	 	 	 	 
	Name:

	 	Anjali Thadani	 	 
	Title:

	 	Vice President	 	 
	 
	 	 	 	 
	DEUTSCHE BANK AKTIENGESELLSCHAFT	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jonathan Blake	 	 
	 

	 	 	 	 
	Name:

	 	Jonathan Blake	 	 
	Title:

	 	Director, Head of Capital Market Issuance	 	 
	 
	 	 	 	 
	By:

	 	/s/ Marco Zimmermann	 	 
	 

	 	 	 	 
	Name:

	 	Marco Zimmermann	 	 
	Title:

	 	Vice President, Issuance and Liquidity Manager	 	 

Subordinated Deposit Agreementexv10w1

Exhibit 10.1

AGREEMENT

     THIS AGREEMENT (“Agreement”), dated as of the 9th day of March, 2010 (the “Effective
Date”), by and between Lakes Ohio Development, LLC, a Minnesota limited liability company
(the “Company”) and Quest Media Group, LLC, an Ohio limited liability company (“Quest”).

WITNESSETH:

     WHEREAS, the Company and MYOHIONOW.COM, LLC, an Ohio limited liability company, previously
entered into a Joint Venture Agreement dated April 16, 2008 (the “JV Agreement”) pertaining to
placing a referendum on the November, 2008 Ohio statewide election ballot to approve an amendment
to the Ohio Constitution that would permit the development and operation of a casino in Clinton
County, Ohio (the “2008 Initiative”); and

     WHEREAS, pursuant to the JV Agreement, Company advanced monies necessary to fund the 2008
Initiative, the principal of which totals approximately Twenty-Seven Million Seven Hundred
Seventy-Five Thousand Dollars ($27,775,000) (“JV Loans”), which amounts will be documented by the
Company and reported to Quest once such amounts are finally determined; and

     WHEREAS, Quest assisted the Company in partnering with Rock Ohio Ventures, LLC (“Rock”) and
Penn Ventures, LLC (“Penn”) with respect to funding the proposed citizen-initiated referendum in
November, 2009 to amend the Ohio constitution, commonly referred to as Issue 3 (“2009 Initiative”)
and the potential development and operation of a gaming facility in each of Toledo, Columbus,
Cincinnati and Cleveland, Ohio (collectively, “Casinos”); and

     WHEREAS, the Company funded certain costs that were incurred by Rock and Penn for the 2009
Initiative (“2009 Initiative Costs”) which amounts will be documented by the Company and reported
to Quest once such amounts are finally determined; and

     WHEREAS, the Company (or an affiliate) has, or will have the right to obtain, an equity
position in Rock Ohio Ventures, LLC (“Rock Equity”) and Penn Ventures, LLC (“Penn Equity”)
pertaining to the development and operation of the Casinos; and

     WHEREAS, the Company and Quest desire to enter into this Agreement to set forth the terms and
conditions upon which Quest shall be compensated for the services it performed relating to the 2009
Initiative (“Services”).

     WHEREAS, the parties hereto acknowledge and agree that as of the date of this Agreement the
Services have been fully performed and the compensation to be paid is fully earned.

     NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

AGREEMENT

     1. Fee. In consideration of Quest’s performance of the Services, Quest shall be paid
a fee on the terms and conditions set forth in this Section 1.1.

 

 

          1.1. Terms and Conditions of Fee

               (a) Amount of Fee. The fee (“Fee”) shall be an amount equal to eighteen percent (18%)
of the Gross Distributions after payment of any Additional Capital Required Return pursuant to
1.1(b)(ii) below.

               (b) Certain Definitions. For the purposes of this Agreement with respect to each
Project Company:

               (i) “Gross Distributions” means the amount of cash received by the Company from such
Project Company less any Prior Costs pursuant to 1.1(b)(iii) below;

               (ii) “Additional Capital Required Return” means the total amount required to be paid
with respect to capital invested in such Project Company in excess of the 2009 Initiative Costs
(“Additional Capital”), provided, however, that, in the event such Additional Capital investment is
made by the Company (or its affiliates) and/or Quest by or through the exercise of its rights
described in Section 1.2 below, the required payment shall equal the amount a third party providing
such Additional Capital in an arm’s length transaction would require in connection with the
provision of such Additional Capital, as determined in good faith by the Company in consultation
with independent investment bankers;

               (iii) “Prior Costs” means an amount equal to:

	 	a.	 	as of the date the Company receives its first
distribution from a Project Company (the “First Distribution
Date”), the sum of the JV Loans plus Interest and the 2009
Initiative Costs plus Interest multiplied by twenty percent
(20%) (“First Amount”) (each such twenty percent portion being
an “Annual Allocation”);
	 
	 	b.	 	as of the first anniversary of the First Distribution
Date, an additional Annual Allocation for the prior year plus
any unpaid First Amount together with Interest accrued thereon
from and after the First Distribution Date (the “Second
Amount”);
	 
	 	c.	 	as of the second anniversary of the First Distribution
Date, an additional Annual Allocation for the prior year plus
any unpaid Second Amount, together with Interest accrued thereon
from and after the first anniversary of the First Distribution
Date (the “Third Amount”);
	 
	 	d.	 	as of the third anniversary of the First Distribution
Date, an additional Annual Allocation for the prior year plus
any unpaid Third Amount, together with Interest accrued thereon
from and after the second anniversary of the First Distribution
Date (the “Fourth Amount”); and
	 
	 	e.	 	as of the fourth anniversary of the First Distribution
Date, and at any time thereafter, the final Annual Allocation
for the prior year plus any unpaid Fourth Amount, together with
Interest accrued thereon from and after the third anniversary of
the First Distribution Date.

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	 	 	 	For purposes of these calculations, any amounts applied to the payment of
Prior Costs will be applied first to the Interest component thereof and
thereafter to principal.
	 
	 	 	 	Notwithstanding anything herein to the contrary, Quest shall receive no more
than $500,000 annually until Company has been fully repaid for all Prior
Costs.
	 
	 	 	 	All cash received by the Company from the Project Companies will be applied
first to pay the Prior Costs except for the Fee payable to Quest as
described above.

                    (iv) “Project Company” means the entities formed to develop and operate the Casinos
and in which the Rock Equity and the Penn Equity relate including Rock Ohio Ventures, LLC, Penn
Ventures, LLC and their respective successors or other entities formed by such companies to develop
and operate the Casinos (e.g., “Project Vehicles” as the term is used in the Letter
Agreement between Lakes Entertainment, Inc. and Penn Ventures, LLC dated October 28, 2009).

                    (v) “Interest” means simple interest accruing at a rate of 10% per annum from the
date of any advance plus an additional amount as may be necessary to ensure that the Company
receives a net amount with respect to the JV Loans and the 2009 Initiative Costs equal to the full
amount the Company would have received had such payments not been subject to taxes.

                    (c) Payment and Duration of Fee. Subject to Section 1.2, Quest shall commence
receiving the Fee on the First Distribution Date until termination, if any, of this Agreement
pursuant to Section 4 herein. Each installment of the Fee shall be paid to Quest within five (5)
days after the Company receives a distribution and accompanied by a written report setting forth
the amount of, and the date, the distribution was received from such Project Company. The Company
shall provide reports to Quest upon request detailing the distributions that the Company receives
from the Project Companies and the payment of principal and interest on the Prior Costs and any
Additional Capital Required Return.

                    (d) Gaming Regulations. Quest shall not be paid any Fee during any period for which
it does not hold all required licenses and registrations required under Applicable Law (if any) to
receive payment under this Agreement. Quest agrees to notify the Company of any notices or
communications received by Quest from any Gaming Authority with respect to this Agreement or the
Fee. Quest agrees that the termination right pursuant to Sections 4(b) and 6(c) shall apply both
to the Requested Information and any communications from any Gaming Authority in respect of the
Fee, this Agreement, Quest, the principals of Quest or persons affiliated or associated with the
principals of Quest.

                    (e) Quest shall have the option of deferring one or more Fee payments in order to apply the
Fee payment proceeds to the pre-payment of the Prior Costs and/or any Additional Capital Required
Return (e.g., thereby reducing the principal balance of the Prior Costs earlier than as
contemplated by the amortization and allocation in Section 1.1(b)(iii)). The option will be
exercised by Quest giving written notice to the Company and returning the Fee payment no later than
14 days after receipt of such Fee payment.

                    (f) Quest shall also have the option to pay additional funds to the Company and pay off the
principal balance of the Prior Costs and any accrued Interest thereon.

          1.2. Right of First Refusal.

                    (a) Right. If a Project Company requests that the Company (or an affiliate)
invest Additional Capital, the Company shall offer to Quest the right to invest up to eighteen
percent

-3-

 

(18%) of the Additional Capital being invested upon the same terms and conditions (including
the timing of investment) as the Company (or its affiliate) is proposing to invest such Additional
Capital. The Company will promptly forward to Quest any such request by a Project Company.

               (b) Notice. The right hereunder shall be made by written notice given to Quest,
specifying therein the amount of the Additional Capital and terms related to such investment.
Quest shall have a period of ten (10) business days (or, (i) if such Project Company requests a
commitment from the Company in a shorter period of time, such time as required by Project Company.
If Quest elects to accept such offer, Quest shall so accept by written notice to the Company given
within such 10-day period (or such other shorter period if applicable). If Quest fails to accept
such offer in whole within such 10-day period (or such other shorter period if applicable) or fails
to fully fund its eighteen percent (18%), Quest shall be deemed to have waived its rights hereunder
and shall no longer have any right of first refusal with respect to any Additional Capital raised
thereafter.

               (c) Repayment. In the event Quest exercises its right to contribute Additional
Capital, Quest shall be repaid on a pro rata basis proportionate to the Company’s contribution of
Additional Capital and the terms of repayment and the Additional Capital Required Return with
respect to Quest’s contribution of Additional Capital will be on the same terms as those applicable
to the contribution of Additional Capital by the Company.

          1.3 Security Interest. As security for the payment of the Fee, the Company grants to
Quest a security interest in an amount of the Distribution equal to its Fee pursuant to the terms
and conditions of the Security Agreement entered into as of the date of this Agreement, a copy of
which is attached hereto as Exhibit A.

          1.4 Exclusion. The Fee shall not apply to any monies the Company receives for
management, development or consulting services or the like, or any principal or interest payments
made to Company for debt owed to Company.

          1.5 Penn and Rock Agreements. The Company shall endeavor to deliver any amendments
to such agreements and any further agreements relating to the Penn Equity and/or the Rock Equity,
provided, however, that Company’s failure to provide such amendments shall not be a default under
this Agreement if such amendments are filed pursuant to its SEC reporting obligations.

     2. Representations and Warranties/Conditions.

          2.1 Quest’s Representations and Warranties. Quest represents and warrants to the
Company that:

               (a) Entering into this Agreement and/or receiving payment hereunder does not violate any
Applicable Laws (as defined below), including, without limitation, any Gaming Laws (as defined
below);

               (b) Quest holds all required licenses and registrations, and has satisfied all other
requirements of Applicable Laws necessary to accept payment hereunder;

               (c) Quest and its employees, officers, directors, members, managers and agents, will not in
any way hold itself or themselves out as representatives or owners of Company, Rock or Penn, nor
will they have the right to speak on behalf of such companies;

               (d) Quest has full power and authority to do and perform all acts and things required to be
done by it under this Agreement. The execution, delivery and performance by Quest of this

-4-

 

Agreement, as well as all documents and agreements necessary to consummate the transaction
contemplated hereby, are within the authority of Quest, have been authorized by all necessary
proceedings and do not and will not contravene any provision of law, Quest’s charter, bylaws, other
organizational documents or any amendment thereof. This Agreement and any other agreements and
instruments required to be delivered hereunder by Quest, when duly executed and delivered by Quest,
will constitute valid and binding obligations of Quest and will be enforceable in accordance with
their respective terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium, or other laws affecting creditor’s rights generally or by general
principles of equity;

               (e) Quest’s execution of and compliance with this Agreement will not result in the breach of
any term or provision of, or constitute a default under any agreement or other instrument to which
Quest is subject;

               (f) To the knowledge of Quest, the engagement of Quest by the Company to perform the Services
required hereunder will not create any Gaming Problem (as defined below).

          2.2 Pre-Condition to Payment Obligations. It shall be a pre-condition to
the Company’s obligation to make payments of the Fee to Quest as required under this Agreement,
that Quest has obtained and maintains throughout the Term, all gaming licenses and all other
required authorizations on its behalf and on behalf of any and all of its officers, members,
managers, agents, employees, directors, shareholders, and all other Persons, as required by any and
all Gaming Authorities.

     3. Term of Agreement.

          The term of this Agreement (the “Term”) shall commence upon the Effective Date and continue so
long as there is a Distribution, subject to termination of this Agreement pursuant to the
provisions of this Agreement.

     4. Termination Events.

          This Agreement may be terminated upon written notification to the other party as follows:

               (a) by either Quest, on the one hand, or the Company, on the other hand, if a breach of any
provision of this Agreement has been committed by the other;

               (b) by the Company pursuant to an exercise of its rights under Section 6(c) hereof;

               (c) by the Company if Quest fails to comply with any Applicable Laws in connection with
receiving payment hereunder. Notwithstanding the foregoing, Quest shall have sixty (60) days from
the date notified by the Company to cure any such non-compliance, unless a Governmental Authority
or Gaming Authority requires a cure period of shorter duration, in which case Quest must cure such
non-compliance within such cure period. If Quest fails to cure the non-compliance within such
period of time, Company may immediately terminate this Agreement.

     5. Effect of Termination.

          Each party’s right of termination under Section 4 is in addition to any other rights it may
have under this Agreement, in equity, or at law, and the exercise of a right of termination shall
not constitute an election of remedies.

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     6. Quest Covenants.

               (a) Confidential Information. Quest hereby covenants and agrees that, unless
previously authorized in writing or instructed in writing by the Company, Quest will, during the
Term of its engagement hereunder, and following any termination of this Agreement, will keep this
Agreement, and its association with the Company, and its indirect association with Rock, Penn and
the Casinos, and each of them, strictly confidential unless (i) disclosure is required by Gaming
and or Governmental/Legal Authorities, or (ii) in connection with discussions with Quest’s
accountants, attorneys, lenders, financial advisors or consultants, investors, owners or
prospective owners of Quest or Quest’s owners, or (iii) such matter or information becomes publicly
available or known or is of public record through no breach of this Agreement by Quest.

               (b) Compliance with Applicable Laws. Quest shall comply with all Applicable Laws
during the term of this Agreement.

               (c) Compliance Committee. Quest shall promptly provide the Company with all
information required by the Company or its compliance committee with respect to Quest’s and its
respective affiliates, and each such Person’s officers, members, managers, agents, employees,
directors and shareholders, including background, financial condition, litigation, indictments,
criminal proceedings and the like in which they are, may be or have been involved, if any,
(“Requested Information”) in order for the Company to determine that the Requested Information does
not disclose any fact which might adversely affect in any manner, any gaming licenses,
registrations, findings of suitability, permits or approvals (collectively, “Gaming Licenses”)
sought or held by the Company or any of its affiliates, or the current stature of the Company or
its affiliates with any gaming commission, board or similar regulatory agency, or any pending or
anticipated applications for Gaming Licenses filed by the Company or any of its affiliates. In the
event Quest shall fail to provide the Requested Information promptly, or if the information
provided with respect to Quest or its respective affiliates, or information which Company obtained
as a result of its own due diligence investigation, in the reasonable opinion of the Company or its
compliance committee might adversely affect any Gaming Licenses held by the Company or its
affiliates or the current stature of the Company or its affiliates with any gaming commission,
board, or similar governmental or regulatory agency (including, but not limited to, as an
applicant) (a “Regulatory Defect”), then the Company shall have the right to immediately terminate
this Agreement upon written notice and the parties shall have no further obligations or liability
hereunder. This obligation shall continue throughout the term of this Agreement. Notwithstanding
the foregoing, Quest shall have 60 days from the date notified by Company to cure the Regulatory
Defect. If Finder fails to cure the Regulatory Defect within such 60 days, Company may immediately
terminate this Agreement.

     7. Definitions. For purposes of this Agreement, the following terms, have the
following meanings:

     “Applicable Laws” shall mean all applicable provisions of all (i) constitutions, treaties,
statutes, laws, rules, regulations and ordinances of any Governmental Authority and all common law
duties, including, without limitation, all Gaming Laws, (ii) Consents of any Governmental Authority
and (iii) orders, decisions, rulings, judgments, directives or decrees of any Governmental
Authority binding on, or applicable to, any of the parties hereto.

     “Consents” shall mean all consents, approvals, authorizations, waivers, permits, grants,
franchises, licenses, exemptions or orders of, or any registrations, certificates, qualifications,
declarations or filings with, or any notices to, any Governmental Authority or other Person.

     “Gaming Authority” shall mean any agency, authority, board, bureau, commission, department,
office or instrumentality of any nature whatsoever of the United States federal government, any

-6-

 

international government, any state, province or city or other political subdivision, any
applicable State government, or otherwise, whether now or hereafter in existence, or any officer or
official thereof, in each case, with licensing, permit or regulatory authority over gambling,
gaming or casino activities.

     “Gaming Laws” shall mean all Applicable Laws of all Gaming Authorities, as in effect from time
to time, including the policies, interpretations and administration thereof by such Gaming
Authorities.

     “Gaming Problem” shall mean any circumstances that cause the Company, any member, manager,
director, officer, or employee of the Company, or any parent, affiliate, or subsidiary of any such
Person, to be deemed likely, in the reasonable discretion of the Board of Directors of the Company,
based on verifiable information or information received from any Gaming Authority or otherwise, to
preclude or materially delay, impede or impair the ability of the Company, or any parent,
affiliate, or subsidiary of the Company, to obtain or retain any Gaming Licenses, or that may
result in the imposition of materially burdensome terms and conditions on any such Gaming License.

     “Governmental Authority” shall mean any nation or government, and any state or political
subdivision thereof, any entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government (including, without limitation, the
Securities and Exchange Commission and any Gaming Authority), and any court, tribunal or
arbitrator(s) of competent jurisdiction, and any self-regulatory organization.

     “Person” shall mean any individual, sole proprietorship, partnership (general or limited),
joint venture, trust, trustee, unincorporated organization, association, corporation, limited
liability company, limited liability partnership, institution or other entity or Governmental
Authority.

     8. Miscellaneous.

               (a) Entire Agreement. This Agreement constitutes the entire agreement of the parties
with respect to the subject matter hereof and no other agreement, statement, promise or practice
between the parties relating to the subject matter shall be binding upon the parties. This
Agreement may not be modified, amended, or terminated except by a written agreement signed by all
of the parties hereto.

               (b) Assignment; Binding Effect. This Agreement shall not be assignable by Quest, but
it shall be binding upon, and shall inure to the benefit of, its heirs, executors, administrators,
and legal representatives. This Agreement shall be binding upon the Company and inure to the
benefit of the Company and its respective successors and permitted assigns. This Agreement may be
assigned by the Company to an entity controlling, controlled by, or under common control with the
Company; provided, however, that such assignee shall assume all rights and obligations of the
Company pursuant to this Agreement, and further provided that any gaming/casino licenses or permits
that Company has obtained relating to the Casino shall be assigned to that such assignee.

               (c) Notices. Any and all notices or other communications required or permitted to be
given under any of the provisions of this Agreement shall be in writing and shall be deemed to have
been duly given when personally delivered or mailed by first class registered mail, return receipt
requested, or by commercial courier or delivery service, or by facsimile or electronic mail,
addressed to the parties at the addresses set forth below (or at such other address as any party
may specify by notice to all other parties given as aforesaid):

-7-

 

If to the Company, to:

Lakes Ohio Development, LLC

Attn: Damon E. Schramm

130 Cheshire Lane, Suite 101

Minnetonka, MN 55305

Phone: (952) 449-7069

Facsimile: (952) 449-7068

If to Quest, to:

Quest Media Group, LLC

Attn: Ricky A. Lertzman

23800 Commerce Park, Suite E

Beachwood, Ohio 44122

Phone: (216) 464-1300

Facsimile:                     

               and/or to such other Persons and addresses as any party shall have specified in writing to the
other by notice as aforesaid.

               (d) Waiver. No waiver of any breach or default hereunder shall be considered valid
unless in writing, and no such waiver shall be deemed a waiver of any subsequent breach or default
of the same or similar nature.

               (e) Enforceability. If any provision of this Agreement shall be held invalid or
unenforceable, such invalidity or unenforceability shall attach only to such provision and shall
not in any manner affect or render invalid or unenforceable any other severable provision of this
Agreement, and this Agreement shall be carried out as if any such invalid or unenforceable
provision were not contained herein, and the remainder of this Agreement shall remain operative and
in full force and effect.

               (f) Headings. The section headings contained herein are for the purposes of
convenience only and are not intended to define or limit the contents of the sections.

               (g) Counterparts. This Agreement may be executed in two or more counterparts, all of
which taken together shall be deemed one original, and may be delivered by facsimile.

               (h) Governing Law. This Agreement shall be deemed to be a contract under the laws of
the State of Minnesota and for all purposes shall be construed and enforced in accordance with the
internal laws of said state.

               (i) No Third Party Beneficiary. This Agreement shall not confer any rights or
remedies upon any Person or entity other than the parties hereto and their respective successors
and permitted assigns.

               (j) Independent Contractor Status. The parties intend that an independent contractor
relationship will be created under this Agreement. Accordingly, Quest shall have full
responsibility for the payment of all federal, state and local taxes or contributions imposed that
are required pursuant to unemployment insurance, social security, income, workers’ compensation and
similar laws, and shall be solely responsible for any liability resulting from the acts, omissions
or negligence of Quest or its agents, employees, officers, directors, members, managers,
contractors or subcontractors.

-8-

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written.

	 	 	 	 	 
	 	COMPANY:

LAKES OHIO DEVELOPMENT, LLC 

 	 
	 	By:  	/s/ Lyle Berman
 	 
	 	 	Title:      Chief Executive Officer 	 
	 	 	 	 
	 
	 	QUEST:

QUEST MEDIA GROUP, LLC 

 	 
	 	By:  	/s/ Brad Pressman
 	 
	 	 	Title:      Treasurer 	 
	 	 	 	 
	 

-9-

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