Document:

2019 Q3 CEC Ex 10.1 Ranger PSA w/o exhibits

Exhibit 10.1

Certain information (indicated by “[***]”) and exhibits have been excluded from this agreement because such information (i) is not material and (ii) would be competitively harmful if publicly disclosed.

PURCHASE AND SALE AGREEMENT
AND JOINT ESCROW INSTRUCTIONS

by and between

RIO PROPERTIES, LLC

and

IC 3700 FLAMINGO ROAD VENTURE LLC

Dated as of September 20, 2019

PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS

This Purchase and Sale Agreement and Joint Escrow Instructions (“Contract”) is entered into this 20th day of September, 2019 (the “Effective Date”) by and between RIO PROPERTIES, LLC, a Nevada limited liability company (“Seller”), and IC 3700 FLAMINGO ROAD VENTURE LLC, a Delaware limited liability company (“Buyer”), for the purpose of setting forth the agreement of the parties and of instructing the Escrow Agent (as defined below) with respect to the transaction contemplated by this Contract.  
RECITALS
A.    Seller is the owner of that certain parcel of real property bearing Clark County Assessor Parcel Number 162-17-410-001, with an address of 3700 W. Flamingo Road, Las Vegas, Nevada 89103, and as more particularly described in Exhibit A attached hereto, and the buildings and other improvements thereon commonly known as “The Rio All-Suite Hotel & Casino” (collectively, the “Property”).
B.    Seller desires to sell, and Buyer desires to purchase, the Property subject to the terms and conditions of this Contract.
C.    Capitalized terms used herein and not otherwise defined herein shall have meanings set forth in Exhibit B attached hereto. 
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing premises and the respective representations, agreements, covenants and conditions herein contained, and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, Seller and Buyer agree that the foregoing recitals are true and correct and incorporated herein and also agree as follows:

ARTICLE 1 
PURCHASE AND SALE
1.1    Purchase and Sale.  Subject to the conditions and on the terms contained in this Contract, on the Closing Date, Seller shall sell, convey and transfer to Buyer, and Buyer shall purchase from Seller, all of the Membership Interests in New Property Owner, which will own the Property, FF&E and Property Marks and which will co-own the Guest Data (subject to the Use Restrictions) at Closing (collectively, the “Purchased Assets”). For the avoidance of doubt, the Purchased Assets shall not include the FCC Licenses, the WSOP Assets, the Gaming Equipment, the OS&E or any other tangible or intangible property.
1.2    Purchase Price.  The total purchase price (the “Purchase Price”) to be paid to Seller by Buyer at Closing for the Membership Interests shall be Five Hundred Sixteen Million Three Hundred Thirteen Thousand Two Hundred Fifty and No/100 Dollars ($516,313,250.00).
1.3    Payment of Purchase Price.
1.3.1    Payment of Deposit.  On the Effective Date, Buyer shall deliver in Immediately Available Funds an earnest money deposit (the “Initial Deposit”) of Five Million and No/100 Dollars ($5,000,000.00) to the Escrow Agent. Receipt of any portion of the Deposit shall be confirmed by the Escrow Agent to Buyer.  Within two (2) Business Days of receipt of any portion of the Deposit, the Escrow Agent shall release such portion of the Deposit to Seller in accordance with fund transfer instructions provided by Seller to the Escrow Agent.  The Deposit shall be non‐refundable to Buyer except as otherwise set forth in this Contract.  If the transaction contemplated hereby is consummated in accordance with the terms hereof, the aggregate amount of the Deposit actually paid by Buyer to the Escrow Agent (the “Paid Deposit”) shall be applied to the Purchase Price at Closing.    
1.3.2    Payment of Balance of Purchase Price.  On or before one (1) Business Day prior to the Closing Date, Buyer shall deposit with the Escrow Agent in Immediately Available Funds an amount equal to the Purchase Price less the Paid Deposit, together with any Closing Expenses allocated to Buyer pursuant to Section 4.2.
ARTICLE 2     
NEW PROPERTY OWNER
2.1    New Property Owner.  On or before the second (2nd) Business Day prior to the Closing Date (but not earlier than the fourth (4th) Business Day prior to the Closing Date), Seller shall form IC 3700 Flamingo Road LLC, a single member, member-managed, limited liability company in the State of Delaware (“New Property Owner”), which shall be a direct subsidiary of Seller and shall be qualified to do business in the State of Nevada, based on the forms of the certificate of formation and limited liability company agreement attached hereto as Exhibit C (the “Organizational Documents”).  On the Business Day prior to the Closing Date, Seller shall transfer the Purchased Assets to New Property Owner pursuant to the grant, bargain and sale deed, substantially in the form of Exhibit D attached hereto (the “Deed”) and the other applicable Ancillary Agreements.  At all times prior to Closing, Seller shall own one hundred percent (100%) of the equity interests in New Property Owner (the “Membership Interests”).  Seller shall ensure that New Property Owner will be a disregarded entity for federal income tax purposes.
2.2    Purchase Price Allocation.  Seller and Buyer shall allocate the Purchase Price (and relevant liabilities of New Property Owner and other items) among the Purchased Assets in accordance with the Purchase Price Allocation Schedule.  Seller and Buyer agree, for all tax purposes, to report the transactions consistently with the Purchase Price Allocation Schedule and to not take any position during the course of any audit or other proceeding inconsistent with the Purchase Price Allocation Schedule, except in each case as otherwise required by a change in law or pursuant to the good faith resolution of a tax contest.  Seller and Buyer shall make appropriate adjustments to the Purchase Price Allocation Schedule to reflect any adjustments to the Purchase Price.
ARTICLE 3     
SURVEY; TITLE
3.1    Survey.  Buyer has, at its sole cost and expense, engaged Blew & Associates, PA (the “Surveyor”) to prepare an ALTA/NSPS survey of the Property which is dated May 30, 2019 (the “Survey”).  The Survey specifies the area of the Property, identifies all locatable exceptions to title identified in the Title Commitment, locates all improvements on the Property, and identifies any encroachments on the Property.  Seller acknowledges that Buyer has delivered a copy of the Survey to Seller (at no cost to Seller) and shall deliver to Seller (at no cost to Seller) any updates to the Survey promptly following Buyer’s receipt thereof.
3.2    Title Commitment.  Buyer acknowledges that it has received the Commitment for Title Insurance for the Property, effective May 30, 2019 and updated August 29, 2019, Commitment No. [***] (the “Title Commitment”), together with legible copies of all documents appearing as title exceptions.  Buyer shall have the right to have title updated from time to time prior to the Closing, and shall provide to Seller any update to the Title Commitment (as applicable, an “Update”) that Buyer obtains promptly following Buyer’s receipt thereof.  Buyer shall give Seller prompt written notice of any exception to title to the Property in the Update that is not a Permitted Exception and to which Buyer objects (an “Objection”).  Seller shall have no obligation to bring any action or proceeding, or to incur any expense or liability, to remove any Objection (including any judgments recorded against the Property, a “Lien or Judgment”) that is not a Required Removal Exception.  “Required Removal Exception” means the following:(i) all Seller Financings Liens, (ii) any mechanic’s or materialmen’s liens recorded against the Property for work done by or on behalf of Seller or any of its Affiliates, (iii) any federal tax lien recorded against the Property, and (iv) any Lien or Judgment (excluding any Lien or Judgment arising under the foregoing clauses (i), (ii) or (iii)) that, when aggregated with any other Lien or Judgment under this clause (iv) (excluding any Lien or Judgment arising under the foregoing clauses (i), (ii) or (iii)), does not exceed $15,000,000.  In the case of any Required Removal Exception described in the foregoing clauses (ii), (iii) or (iv), Seller shall have the option (in its sole discretion) of bonding over such lien or Lien or Judgment, escrowing sufficient funds with the Title Insurer, indemnifying the Title Insurer or taking any other similar action at or prior to Closing such that such lien or Lien or Judgment is omitted from the Title Policy (or is otherwise insured over by the Title Insurer) without additional cost to Buyer and thereafter Seller shall be deemed to have satisfied, and caused the release of, such Required Removal Exception.
3.3    Title Policy.  At Closing, Buyer shall cause the Title Insurer to issue a title insurance policy insuring that New Property Owner holds fee simple title to the Property subject only to the Permitted Exceptions (the “Title Policy”) and Buyer shall have the right, in its sole discretion and at its sole expense, to cause the Title Insurer to issue such endorsements to the Title Policy and such Lender’s Title Policy as Buyer shall elect.  Following Closing, Buyer’s sole recourse for any defect in the title actually acquired by Buyer shall be to enforce Buyer’s rights under the Title Policy, and Seller shall have no liability to Buyer based upon any defect in the title actually acquired by Buyer; provided, however, that the foregoing provision shall in no event obviate or limit Tenant’s Property Lease Obligations.
		
	ARTICLE 4
	 
NO PRORATIONS; CLOSING EXPENSES

4.1    No Prorations.  Because New Property Owner, as landlord, and Seller, as tenant, will enter into the Property Lease in connection with Closing, and having a lease commencement date that occurs simultaneously with Closing, as between Seller and Buyer, there will be no adjustment or proration of income or expenses relating to the Property or the Purchased Assets.  
4.2    Closing Expenses.  Seller shall pay and be responsible for the following costs in connection with the transactions contemplated by this Contract (collectively, “Seller’s Expenses”): (a) one half of the Escrow fees; and (b) the title insurance premium allocable to the standard ALTA owner’s title policy portion of the Title Policy (i.e., the CLTA portion) and the cost of any endorsements to the Title Policy that Seller agrees to obtain as part of the title curative process.  Buyer shall pay and be responsible for the payment of the following costs in connection with the transactions contemplated by this Contract (collectively, “Buyer’s Expenses” and, together with Seller’s Expenses, the “Closing Expenses”): (i) one half of the Escrow fees; (ii) all real property and other transfer, documentary, sales, use and other such taxes and fees incurred or assessed in connection with the transfer of the Purchased Assets contemplated by this Contract; provided, however, that if there is any transfer tax payable in connection with the transfer of the Property, the Purchase Price shall be reduced by $1,313,250; (iii) except to the extent set forth in clause (b) above, any additional premium for the Title Policy, including extended coverage and for any endorsements to the Title Policy that Buyer may request and any additional premium for the lender’s title insurance policy to be delivered by Buyer to the Debt Financing Source (the “Lender’s Title Policy”); (iv) the costs of recording the Deed; (v) the cost to prepare any Survey and any Update; (vi) the filing fee required to paid in connection with the pre-merger notification filing under the HSR Act; and (vii) any costs and expenses in connection with any other regulatory filing (including any Buyer’s Gaming Approval) required to be made, or any other regulatory clearance, license or approval required to be obtained, by Buyer in connection with the consummation of the transaction contemplated by this Contract.  Except as otherwise specifically set forth herein, the fees and expenses of Seller’s designated representatives, accountants and attorneys shall be borne by Seller, the fees and expenses of Buyer’s designated representatives, accountants and attorneys shall be borne by Buyer, and all other escrow and Closing costs shall be allocated to and paid by Seller or Buyer in accordance with the manner in which such costs are customarily paid by such parties in sales of similar property in Clark County, Nevada as determined by the Escrow Agent.  This Section 4.2 shall survive Closing or any termination of this Contract.
4.3    Closing Statement.  Not less than seven (7) Business Days prior to the Closing Date, the Escrow Agent shall deliver to each of the parties for its review and approval a preliminary closing statement (the “Preliminary Closing Statement”) setting forth the Closing Expenses allocable to each of the parties pursuant to Section 4.2.  Based on each of the party’s reasonable comments, if any, regarding the Preliminary Closing Statement, the Escrow Agent shall revise the Preliminary Closing Statement and each of the parties shall, subject to its reasonable approval, deliver a final closing statement to the Escrow Agent as set forth in Article 12 (the “Closing Statement”).
ARTICLE 5     
AFFIRMATIVE COVENANTS AND AGREEMENTS 
5.1    AS-IS.  THE PARTIES HEREBY ACKNOWLEDGE AND AGREE AS FOLLOWS:  (A) BUYER IS A SOPHISTICATED BUYER WHO IS FAMILIAR WITH THIS TYPE OF PROPERTY AND THESE TYPES OF ASSETS; (B) EXCEPT AS MAY BE EXPRESSLY SET FORTH IN THIS CONTRACT AND THE SELLER CLOSING DOCUMENTS, NEITHER SELLER, SELLER’S AFFILIATES NOR ANY OF THEIR RESPECTIVE AGENTS, REPRESENTATIVES, BROKERS, MANAGERS, MEMBERS, OFFICERS, DIRECTORS, SHAREHOLDERS, PARTNERS (GENERAL OR LIMITED) OR EMPLOYEES HAVE MADE OR WILL MAKE ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND WHATSOEVER, WHETHER ORAL OR WRITTEN, EXPRESS OR IMPLIED, WITH RESPECT TO THE PROPERTY OR THE OTHER PURCHASED ASSETS OR THE NEW PROPERTY OWNER; AND (C) THE PROPERTY AND THE OTHER PURCHASED ASSETS ARE BEING TRANSFERRED IN THEIR PRESENT “AS IS, WHERE IS” CONDITION “WITH ALL FAULTS.”  BUYER HAS BEEN AFFORDED THE OPPORTUNITY TO MAKE ANY AND ALL INSPECTIONS OF THE PROPERTY AND THE OTHER PURCHASED ASSETS AND SUCH RELATED MATTERS AS BUYER MAY REASONABLY DESIRE.  WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, AND EXCEPT TO THE EXTENT SPECIFICALLY SET FORTH IN THIS CONTRACT:
5.1.1    NEITHER SELLER, SELLER’S AFFILIATES NOR ANY OF THEIR RESPECTIVE AGENTS, REPRESENTATIVES, BROKERS, MANAGERS, MEMBERS, OFFICERS, DIRECTORS, SHAREHOLDERS, PARTNERS (GENERAL OR LIMITED) OR EMPLOYEES HAS MADE OR WILL MAKE ANY REPRESENTATIONS OR WARRANTIES, WHETHER ORAL OR WRITTEN, EXPRESS OR IMPLIED, WITH RESPECT TO THE ECONOMIC VALUE OF THE PROPERTY OR THE OTHER PURCHASED ASSETS, ADEQUACY OF UTILITIES SERVING THE PROPERTY, THE FITNESS OR SUITABILITY OF THE PROPERTY OR, EXCEPT TO THE EXTENT SPECIFICALLY SET FORTH IN THIS CONTRACT OR THE SELLER CLOSING DOCUMENTS, THE OTHER PURCHASED ASSETS FOR BUYER’S INTENDED USES OR THE PRESENT USE OF THE PROPERTY OR THE OTHER PURCHASED ASSETS, OR THE PHYSICAL CONDITION, OCCUPATION, OR MANAGEMENT OF THE PROPERTY OR THE OTHER PURCHASED ASSETS, THEIR COMPLIANCE WITH APPLICABLE STATUTES, LAWS, CODES, ORDINANCES, REGULATIONS OR REQUIREMENTS RELATING TO OCCUPANCY, LEASING, ZONING, SUBDIVISION, STRUCTURAL MATTERS, SEISMIC MATTERS, ELECTRICAL, REMOVAL OF ARCHITECTURAL OR COMMUNICATIONS BARRIERS, PLANNING, BUILDING, FIRE SAFETY, HEALTH, COMPLIANCE WITH COVENANTS, CONDITIONS, AND RESTRICTIONS (WHETHER OR NOT OF RECORD), OTHER LOCAL, MUNICIPAL, REGIONAL, STATE OR FEDERAL REQUIREMENTS OR OTHER STATUTES, LAWS, CODES, ORDINANCES, REGULATIONS OR REQUIREMENTS.
5.1.2    SELLER EXPRESSLY DISCLAIMS AND NEGATES, AS TO THE PROPERTY AND THE OTHER PURCHASED ASSETS:  (a) ANY IMPLIED OR EXPRESS WARRANTY OF MERCHANTABILITY; (b) ANY IMPLIED OR EXPRESS WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE; AND (c) ANY IMPLIED WARRANTY WITH RESPECT TO THE CONDITION OF THE PROPERTY OR THE PURCHASED ASSETS, AS APPLICABLE, THE PAST OR PROJECTED FINANCIAL CONDITION OF THE PROPERTY (INCLUDING THE INCOME OR EXPENSES THEREOF, SAVINGS FROM GROUP CONTRACTS, THE RESULT OF TERMINATION OF UTILIZATION OF CAESARS REWARDS (F/K/A TOTAL REWARDS) AT THE PROPERTY AND THE RESULT OF ANY OTHER DISASSOCIATION FROM OTHER ASSETS OF SELLER AND ITS AFFILIATES) OR THE USES PERMITTED ON, THE DEVELOPMENT REQUIREMENTS FOR, OR ANY OTHER MATTER OR THING RELATING TO THE PROPERTY OR THE OTHER PURCHASED ASSETS.
5.1.3    NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, EXCEPT TO THE EXTENT SPECIFICALLY SET FORTH IN THIS CONTRACT OR THE SELLER CLOSING DOCUMENTS, (a) SELLER HAS NOT MADE, IS NOT MAKING, AND WILL NOT MAKE ANY REPRESENTATION, WARRANTY OR PROMISE OF ANY KIND, EXPRESS OR IMPLIED, CONCERNING THE ACCURACY OR COMPLETENESS OF ALL OR ANY PART OF THE DOCUMENTS WITH RESPECT TO THE PROPERTY OR THE OTHER PURCHASED ASSETS MADE AVAILABLE TO BUYER; AND (b) ANY INACCURACY, INCOMPLETENESS OR DEFICIENCY IN ANY PART OF SUCH DOCUMENTS SHALL BE SOLELY THE RISK AND RESPONSIBILITY OF BUYER AND SHALL NOT BE CHARGEABLE IN ANY RESPECT TO SELLER.
5.1.4    EXCEPT AS EXPRESSLY SET FORTH IN SECTION 6.5, 8.8, 8.9 AND 8.10 AND WITHOUT LIMITING ANY OBLIGATIONS OF TENANT UNDER THE PROPERTY LEASE, BUYER HEREBY ABSOLUTELY AND UNCONDITIONALLY WAIVES AND RELEASES SELLER, TO THE FULLEST EXTENT PERMITTED UNDER LAW, FROM ANY AND ALL CLAIMS WITH RESPECT TO ALL OBLIGATIONS FOR OR PERTAINING TO THE EXISTENCE OF ASBESTOS, HAZARDOUS MATERIALS, OR ENVIRONMENTAL CONTAMINATION OR CONDITIONS AT, IN, ON, UNDER OR FROM THE PROPERTY OR THE FF&E ARISING UNDER OR BASED UPON ANY FEDERAL, STATE, LOCAL OR FOREIGN LAWS OR REGULATIONS, INCLUDING ENVIRONMENTAL LAW, NOW OR HEREAFTER IN EFFECT, INCLUDING ALL THOSE PROVISIONS OF LAW THAT EXCLUDE OR MAY EXCLUDE UNKNOWN OR UNSUSPECTED CLAIMS FROM GENERAL RELEASE.
5.2    CONSPICUOUS. TO THE EXTENT REQUIRED TO BE OPERATIVE, THE DISCLAIMERS OR WARRANTIES CONTAINED HEREIN ARE “CONSPICUOUS” DISCLAIMERS FOR PURPOSES OF ANY APPLICABLE LAW, RULE, REGULATIONS OR ORDER.
5.3    Operation of Property.  Between the Effective Date and Closing: (a) Seller shall (i) operate the Purchased Assets and the Gaming Equipment in the ordinary course of business consistent with past practice and shall (A) deliver to Buyer, on a quarterly basis until the Closing Date, an updated list of the Owned Slot Machines and Gaming Tables set forth on Exhibit E attached hereto and (B) maintain and repair (without an obligation to replace, provided that the number of operable gaming machines comprising the Owned Gaming Equipment conveyed to Buyer upon the expiration of the Lease is not less than the number of such machines as of the Effective Date) such Owned Gaming Equipment in the ordinary course of business consistent with past practice since the Lookback Date; (ii) keep the Purchased Assets, the Gaming Equipment, the OS&E and the other personal property owned or leased by Seller and located at the Property as of the Effective Date insured for their respective full replacement cost and otherwise consistent with Seller’s practices since the Lookback Date; and (iii) upon reasonable prior written notice from Buyer, grant reasonable access to the Property, and cooperate with the reasonable requests in connection therewith of, Buyer, its architects, contractors, lenders, construction consultants and other Persons involved in the planning, design, financing and pre-development of the Contemplated Redevelopment (which access and cooperation shall be provided and conducted at Buyer’s expense, during Seller’s normal business hours and under the supervision of Seller’s personnel, and Seller agrees to provide such personnel at times reasonably requested by Buyer), provided that such access shall not (A) unreasonably disturb any tenants, guests or patrons at the Property, (B) unreasonably interfere with Seller’s operation of the Property and (C) involve invasive testing or drilling unless the same is conducted with Seller’s prior written approval (and at times reasonably approved by Seller and in a manner designed to not unreasonably disturb tenants, guests or patrons at the Property) and Buyer restores any affected portion of the Property to its original condition or as near to its original condition as is practical; and (b) Seller shall not (i) demolish or alter, improve or otherwise physically change or dispose of the Property, in whole or in part, or construct any additional buildings, structures or other improvements on the Property, except in each case to the extent that Seller would be permitted to do the same under the terms of the Property Lease if the Property Lease was in effect; (ii) initiate any change to existing zoning or land use laws affecting the Property; (iii) seek any variances with respect to the Property, except for any variances obtained in the ordinary course of business consistent with past practice; (iv) initiate any tax certiorari or other real estate tax appeals regarding all or any portion of the Property, except in each case to the extent that Seller would be permitted to do the same under the terms of the Property Lease if the Property Lease was in effect; (v) remove or dispose of, or enter into any agreement to remove or dispose of, any Owned Gaming Equipment from the Property unless (A) such removal is required or advisable as part of the ordinary course repair or maintenance of such Owned Gaming Equipment and provided that once such repair or maintenance has been completed, such Owned Gaming Equipment shall be returned to the Property or (B) such removal or disposal is in the ordinary course of business and such removed or disposed equipment is replaced with replacement equipment delivered to the Property that is of equal or better quality and functionality as the removed or disposed equipment and such replacement equipment shall become Owned Gaming Equipment; or (vi) enter into any leasing or brokerage agreements for the leasing of any portion of the Property that would be binding, or impose liability, on Buyer from and after the Lease Termination Date. 
5.4    Buyer’s Financing. 
5.4.1    Buyer acknowledges and agrees that its obligations under this Contract are not subject to, or conditioned on, its ability to obtain the Financing.
5.4.2    Buyer shall comply with its obligations under Section 7.3 with respect to the Financing.
5.4.3    Prior to the Closing, Seller shall, and shall cause its Affiliates and use its commercially reasonable efforts to cause its representatives to, provide to Buyer such cooperation as reasonably requested by Buyer that is customary in connection with arranging and obtaining the Debt Financing as contemplated by the Debt Financing Letters, including (but subject in each case to Section 5.4.4): (a) participating in a reasonable number of telephonic meetings, presentations, due diligence sessions with the Debt Financing Sources or any alternative source of debt financing; and (b) furnishing Buyer and its Debt Financing Sources or alternative sources of debt financing as promptly as reasonably practicable with financial and other pertinent information regarding the Purchased Assets as may be reasonably requested by Buyer.  The parties acknowledge and agree that the condition set forth in Section 8.1.1, as it applies to Seller’s obligations under this Section 5.4.3, shall be deemed satisfied unless Seller commits a knowing and intentional, material breach of its obligations under this Section 5.4.3.
5.4.4    Notwithstanding the foregoing, nothing in Section 5.4.3 or otherwise in this Contract shall require Seller, any of its Affiliates or any of its or their respective representatives to: (a) provide any cooperation to the extent it would interfere unreasonably with the business or operations of Seller, any of its Affiliates or any of its or their respective representatives; (b) pay any commitment or similar fee in connection with the Financing; (c) enter into any agreement, document or instrument in connection with the Financing (other than the SNDA defined in the Property Lease); (d) provide any cooperation, or take any action, that, in the reasonable judgment of Seller, could cause Seller, any of its Affiliates or any of its or their respective representatives to incur any actual or potential material liability; (e) provide any cooperation, or take any action, that, in the reasonable judgment of Seller, would result in a violation of any confidentiality arrangement or material agreement or the loss of any attorney-client or other similar privilege; (f) make any representation or warranty in connection with the Financing or the marketing or arrangement thereof; (g) prepare or deliver any financial statements or other financial information; (h) provide any cooperation, or take any action, that would cause any representation or warranty in this Contract to be breached or any condition to Closing set forth in this Contract to fail to be satisfied; (i) cause any governing body of Seller, any of its Affiliates or any of its or their respective representatives to adopt or approve any written consent, resolution or similar approval in respect of the Financing or any agreements or instruments entered into in connection therewith; or (j) provide any cooperation, or take any action, following Closing (but the foregoing shall not operate to limit the Property Lease Obligations of Tenant).
5.4.5    Buyer shall from time to time, promptly upon request by Seller, reimburse Seller, any of its Affiliates or any of its or their respective representatives for any and all reasonable out-of-pocket fees, costs or expenses (including reasonable out-of-pocket fees, costs and expenses of counsel, accountants and other advisors) incurred by any of them in connection with any of their cooperation or assistance with respect to the Financing or the provision of any information utilized in connection therewith or otherwise arising from the Financing. 
5.4.6    Buyer hereby covenants and agrees that all rating agency presentations, bank information memoranda, bank books, offering memoranda, private placement memoranda, offering documents, lender presentations or any other marketing or similar documents prepared in connection with the Financing shall (a) contain disclosures reflecting Buyer and/or one or more post-Closing Affiliates thereof as the obligor(s) and (b) contain disclosures and disclaimers exculpating Seller, its Affiliates and their respective representatives with respect to any liability related to the contents or use thereof by the recipients thereof. 
5.4.7    In addition to the Financing, Seller (or one of its Affiliates) shall provide financing at Closing up to a maximum principal amount of $40,000,000 in the form of an unsecured loan to the Affiliate of Buyer described as the “Borrower” in the term sheet (the “Seller Financing Letter”) attached hereto as Exhibit S (such financing, the “Seller Financing”) on terms substantially consistent with the Seller Financing Letter; provided, however, that Seller shall only be obligated to so provide the Seller Financing if Buyer delivers written notice to Seller no later than 30 days prior to the Closing Date that Buyer elects to obtain the Seller Financing.
5.4.8    Buyer understands and agrees that no contract or agreement providing for any transaction effecting the Seller Financing shall be deemed to exist between Seller or any of its Affiliates, on the one hand, and Buyer or any of its Affiliates, on the other hand, unless and until definitive agreements with respect to the Seller Financing have been executed and delivered by the applicable parties thereto. 
5.5    Guest Data.
5.5.1    At Closing, Seller shall provide New Property Owner with the Guest Data in the format attached in Exhibit F.  Buyer, for itself and on behalf of its Affiliates (including New Property Owner for the periods after the Closing): (a) acknowledges and agrees that Seller and its Affiliates shall be co-owners of the Guest Data; and (b) disclaims any right, title or interest in or to any other guest data or information in the possession or control of Seller or any of its Affiliates.
5.5.2    Following Closing, Buyer shall not and shall cause its Affiliates (including New Property Owner) not to use (directly or indirectly, in any manner or for any reason) the Guest Data until the Property Lease Expiration Date. Following Closing, each of Buyer and Seller shall not and shall cause its respective Affiliates (including New Property Owner in the case of Buyer) not to use the Guest Data (a) in contravention of the terms of the customer agreement, consent, privacy policies or other policies of Seller or any of its Affiliates applicable to such Guest Data (each a “Seller Privacy Policy”) but only to the extent that such Seller Privacy Policies (i) are consistent with the privacy policies applicable to data collected at facilities owned or operated by Seller or any of its Affiliates that are located in Nevada and (ii) with respect to modifications, updates or introduction of Seller Privacy Policies after the Effective Date but prior to the Property Lease Expiration Date, do not disproportionately adversely impact the hotel and casino operations at the Property, (b) in any activity that would be reasonably expected to constitute spamming, or (c) to offer, solicit or promote any illegal, obscene, inappropriate, adult oriented, or pornographic material or activity or to engage in any activity in violation of any applicable laws or the terms of the Seller Privacy Policies.  Notwithstanding the foregoing, Buyer (and New Property Owner) shall no longer be required to comply with Seller’s Privacy Policies following the Property Lease Expiration Date and thereafter following the date that Buyer (or New Property Owner) has notified Persons to whom Guest Data relates of Buyer’s or New Owner’s customer agreements, consents, privacy policies or other policies applicable to Guest Data (each a “Buyer’s Privacy Policy”) so long as (i) Buyer’s Privacy Policies are no less protective of such Guest Data than Seller’s Privacy Policies and (ii) Buyer’s Privacy Policies comply with all Legal Requirements.  Following the Property Lease Expiration Date, there shall be no restriction on the ability of Buyer, its Affiliates (including New Property Owner) or any successor-in-interest to Buyer (including any lender or any of lender’s designees) to, sell or transfer the Guest Data to any other Person or to use the Guest Data in any manner that is not in violation of (x) Seller’s Privacy Policies  or Buyer’s Privacy Policies, as applicable in accordance with the immediately preceding sentence, (y) Legal Requirements or (z) any applicable data sharing opt outs communicated by any relevant customer as documented in the Guest Data records or information provided by Seller to Buyer at any time prior to the Property Lease Expiration Date. Buyer and Seller agree that, in the event of a conflict among, or it is unclear which of, the terms of any such Seller Privacy Policy are applicable, the terms most favorable to and protective of the Persons to whom such Guest Data relates shall apply for purposes of this Section 5.5.2. Notwithstanding the foregoing sentences of this Section 5.5.2, Buyer and Seller agree to obtain consent from the Person(s) to whom the applicable Guest Data relates before materially changing the  terms of any customer agreement, consent, privacy policy or other policy applicable to such Guest Data; provided, however, if the change provides materially more protection to the Guest Data, then the applicable party may instead provide sufficiently prominent and robust written  notice  to  such  Person  at least thirty (30) days prior to making such change and a reasonable period of time for such Person to opt out of such change.  Notwithstanding anything contained in this Contract or any Ancillary Agreement to the contrary, the use of the Guest Data by Buyer and Seller and their respective Affiliates shall, in all events, be subject to the covenants, limitations and restrictions set forth in this Contract and applicable law (collectively, the “Use Restrictions”).  Buyer and Seller agree to, and to cause their respective Affiliates (including New Property Owner in the case of Buyer) to, maintain commercially reasonable measures to protect the physical safety and data integrity of the Guest Data.
5.5.3    HSR Clearance.
5.5.4    The parties shall cooperate with each other and use their commercially reasonable efforts to make all necessary filings, and thereafter make any other required submissions as required under the HSR Act to consummate the transactions contemplated by this Contract (the “HSR Clearance”). The parties and their respective representatives and Affiliates shall file as promptly as practicable, but in no event later than ten (10) days after the Effective Date, all required initial applications and documents in connection with obtaining the HSR Clearance and shall act diligently and promptly and cooperate with each other to obtain the HSR Clearance.  Buyer and Seller shall use their commercially reasonable efforts to schedule and attend any hearings or meetings with Governmental Entities to obtain the HSR Clearance as promptly as possible.  Buyer and Seller shall, to the extent practicable, consult with the other party on, in each case, subject to applicable laws relating to the exchange of information (including antitrust laws), all the information relating to Buyer or Seller, as the case may be, and any of their respective Affiliates or representatives which appear in any filing made with, or written materials submitted to, any third party or any Governmental Entity in connection with the transactions contemplated by this Contract, other than personal information on individuals who are filing notifications.  Without limiting the foregoing, Buyer and Seller will notify the other party promptly of the receipt of comments or requests or other communications from Governmental Entities relating to the HSR Clearance, and, upon reasonable request, supply the other party with copies of all correspondence between the notifying parties or any of its representatives and Governmental Entities with respect to the HSR Clearance.  Buyer agrees that it shall not participate, and not permit any of its Affiliates or representatives to participate, in any meeting with any such Governmental Entity unless it notifies Seller in advance and, to the extent permitted by such Governmental Entity, gives Seller the opportunity to attend and participate at such meeting.
5.5.5    Without limiting Section 5.6.1, Buyer and Seller shall: (a) each use its commercially reasonable efforts to avoid the entry of, or to have vacated or terminated, any decree, order or judgment that would restrain, prevent or delay Closing, including defending through litigation on the merits any claim asserted in any court by any Person; and (b) each use its commercially reasonable efforts to avoid or eliminate each and every impediment under any antitrust, competition or trade regulation law that may be asserted by any Governmental Entity or any other Person with respect to Closing so as to enable Closing to occur as soon as reasonably possible (and in any event no later than the Outside Date), including implementing, contesting or resisting any litigation before any court or administrative tribunal seeking to restrain or enjoin Closing; provided, that Buyer and its Affiliates shall be required to (and nothing in this Contract shall require Seller or any of its Affiliates to) commit to any divestitures, licenses or hold separate or similar arrangements with respect to its or their respective assets or conduct of business arrangements (such arrangements, the “Remedial Actions”), to the extent necessary to obtain any approval from a Governmental Entity required to consummate the transactions contemplated hereby; provided, further, that nothing in this Section 5.6.2 shall require Buyer to take any Remedial Action that constitutes or would reasonably be expected to constitute a Burdensome Condition.
5.5.6    Buyer and Seller shall promptly advise each other upon receiving any communication from any Governmental Entity whose consent or approval is required for consummation of the transactions governed by this Contract.  Buyer and Seller shall each use its commercially reasonable efforts to take, or cause to be taken, all actions reasonably necessary to defend any lawsuits or other legal proceedings challenging this Contract or the consummation of the transactions contemplated hereby and shall seek to prevent the entry by any Governmental Entity of any decree, injunction or other order challenging this Contract or the consummation of the transactions contemplated hereby.  The parties agree to appeal, as promptly as possible, any decree, injunction or other order challenging this Contract or the consummation of the transaction contemplated hereby and use commercially reasonable efforts to have any such decree, injunction or other order vacated or reversed.
5.5.7    From the Effective Date until the earlier of termination of this Contract and Closing, each party shall promptly notify the other party in writing of any pending or, to the knowledge of Buyer or Seller, as appropriate, threatened action, suit, arbitration or other proceeding or investigation by any Governmental Entity or any other Person (a) challenging or seeking damages in connection with Closing or any other transaction governed by this Contract or (b) seeking to restrain or prohibit the consummation of Closing.
5.5.8    From the Effective Date until the earlier of termination of this Contract and Closing, Buyer shall not, and shall not permit any of its Affiliates to, acquire or agree to acquire by merging or by consolidating with, or by purchasing assets of or a substantial portion of equity in, or any other manner, or otherwise own or operate any business or any corporation, partnership, association or other business organization or division thereof engaged in the gaming business in Las Vegas if such acquisition or agreement to acquire could reasonably be expected to adversely affect Buyer’s ability to consummate the transactions contemplated by this Contract. 
5.6    Gaming Law Provisions. 
5.6.1    Buyer acknowledges and agrees that its rights, remedies and powers under this Contract may be exercised only to the extent that the exercise thereof does not violate any applicable provisions of the Gaming Laws and only to the extent that any required approvals (including prior approvals) are obtained from the requisite Gaming Authorities and that Buyer may be subject to being called forward by the requisite Gaming Authorities in order to determine whether Buyer meets suitability standards under applicable Gaming Law (any such approvals, “Buyer’s Gaming Approval”).  Buyer agrees to cooperate with the applicable Gaming Authorities in connection with the administration of their regulatory jurisdiction over Seller, including, without limitation, the provision of such documents or other information as may be requested by any such Gaming Authorities relating to Buyer, Seller or this Contract.
5.6.2    As a holder of privileged gaming licenses, Seller and its Affiliates are required to adhere to strict laws and regulations regarding vendor and other business relationships or associations.  If at any time the Compliance Committee of Caesars Entertainment Corporation (including any successor thereto, the “Compliance Committee’) determines in its sole discretion (acting in good faith) that (a) Seller’s association with Buyer (or any Person that, directly or indirectly, holds any interest in Buyer or any key principal of Buyer or any such Person) violates or is likely to violate any statutes and/or regulations regarding prohibited relationships with gaming companies or (b) it is in the best interests of Seller and its Affiliates to terminate Seller’s relationship with Buyer (or any Person that, directly or indirectly, holds any interest in Buyer or any key principal of Buyer or any such Person) in order to protect any pending licensing applications or any privileged gaming licenses of Seller or any of its Affiliates or protect Seller and its Affiliates from any disciplinary actions by any Gaming Authority (each of clause (a) and (b) above, a “Suitability Problem”), Seller shall provide written notice thereof to Buyer together with (to the extent permitted by applicable law) a reasonably‐detailed description of the facts and circumstances leading Seller to its determination that a Suitability Problem exists and copies of any notices from any Gaming Authority, Governmental Entity or other Person asserting or relating to such determination (a “Suitability Problem Notice”).  Following the delivery by Seller of a Suitability Problem Notice, Buyer shall use commercially reasonable efforts to take such actions as would eliminate such Suitability Problem within the time period required by the Compliance Committee or any applicable Gaming Authority.  If Buyer is unable to, after using commercially reasonable efforts, eliminate such Suitability Problem within such time period, Seller may terminate this Contract upon written notice to Buyer.  Buyer agrees to cooperate with Seller, if requested, to undergo a background investigation to comply with Seller’s compliance policies and to continue to cooperate with Seller throughout the term of this Contract to establish and maintain Buyer suitability under applicable Gaming Law.  During the term of this Contract, to the extent any prior disclosures become inaccurate, including, but not limited to, due to a new Equity Financing Source or the initiation of any criminal proceeding or any civil or administrative proceeding or process which alleges any violations of law involving Buyer (or any Person that, directly or indirectly, holds any interest in Buyer or any key principal of Buyer or any such Person), Buyer shall disclose to Seller all information regarding such inaccuracies actually known to Buyer at the time within ten (10) calendar days from that event.  Buyer agrees to comply, and use diligent efforts to cause third parties to comply, with any background investigation conducted in connection with the disclosure of this updated information.  Notwithstanding any other terms of this Contract, in the event of termination of this Contract pursuant to this Section 5.7.2, Seller shall return the Deposit to Buyer (unless the Suitability Problem was a Buyer Bad Act Suitability Problem, in which case Seller shall be entitled to retain the Deposit as its liquidated damages) and thereafter neither Seller nor Buyer shall have any further liability to the other under this Contract except for those rights and obligations that, by their terms, survive the termination of this Contract.  Buyer agrees to promptly notify Seller of any Change of Control of Buyer, any Person who will be an Equity Financing Source other than an Identified Equity Financing Source or any knowledge obtained by Buyer of a matter that would reasonably be expected to result in a Buyer Bad Act Suitability Problem. Seller represents to Buyer that, as of the Effective Date, the Compliance Committee (i) is composed entirely of Independent Persons, (ii) has received, for Buyer and each Identified Equity Financing Source, a Business Information Form and such other information that the Compliance Committee may have requested for Buyer and each Identified Equity Financing Source and (iii) has determined prior to the Effective Date, based on the information disclosed in such Business Information Form and, with respect to Buyer only, assuming the representations and warranties of Buyer in Section 5.7.3 are true and correct, that no Suitability Problem exists with respect to Buyer or the Identified Equity Financing Sources. Buyer agrees that it shall not utilize an Equity Financing Source other than an Equity Financing Source (x) identified to Seller no later than November 15, 2019 and (y) that has been approved by the Compliance Committee (an “Approved New Equity Financing Source”).
5.6.3    To Buyer’s knowledge, as of the Effective Date, none of the information provided to the Compliance Committee referenced in Section 5.7.2 related to any Identified Equity Financing Source contained any material misstatements or material omissions.  
5.7    Guaranty.  Concurrently with the execution and delivery of this Agreement, Caesars Resort Collection, LLC (“Guarantor”) has executed that certain guaranty in the form attached hereto as Exhibit G (the “Seller Guaranty”) guaranteeing (a) Seller’s obligation to return the Deposit if required to do so pursuant to the provisions of this Agreement, (b) Seller’s post-closing obligations under this Agreement and (c) Seller’s future obligations as Tenant under the Property Lease (including Seller’s obligation to transfer the owned Gaming Equipment to Buyer or its designee pursuant thereto).
5.8    Property Subdivision. Buyer (a) shall from and after the Effective Date, cause the Surveyor to update the Survey and provide a separate legal description for the Development Parcel and the balance of the Property, (b) prior to the Closing Date, shall deliver to Seller a copy of the revised Survey and separate legal descriptions and (c) may take such steps and obtain such approvals required under Legal Requirements to separate the Development Parcel from the balance of the Property and create separate legal and tax lots for the same; provided, however, that in no case shall such separate legal and tax lots be created prior to the Closing Date.  In connection with the foregoing, Seller shall cooperate with the reasonable requests of Buyer as may be required by Governmental Entities to effectuate such subdivision and creation of separate legal and tax lots, including executing such applications, “owner approvals” or other reasonable documentation, and Buyer shall pay all application fees and shall, within fifteen (15) days of demand therefor, reimburse Seller for all reasonable out-of-pocket costs and expenses incurred by Seller in connection therewith.  Such reimbursement obligations shall survive Closing or any termination of this Contract.
5.9    Trademarks. Seller shall: (a) cause its licensees to limit use of the Rio Secco trademark to that which exists as of the Closing Date and not expand such use of the Rio Secco trademark to any other properties or locations; and (b) immediately upon the expiration or termination of all such licenses existing as of the Closing Date, including any renewals or extensions thereof, assign and transfer to Buyer all right, title and interest in and to the Rio Secco trademark, including the goodwill associated therewith, and execute all documents and agreements reasonably necessary to effectuate such assignment and transfer. 
5.10    Culinary CBA. From and after the Effective Date, Seller shall not permit any amendments, supplements, modifications or terminations to the Culinary CBA, unless the same are approved by Buyer in writing in its sole discretion; provided, however, that the foregoing shall not apply to any such amendment, supplement, modification or termination that is (a) required by applicable law or (b) made in the ordinary course of business so long as such amendment, supplement, modification or termination does not disproportionately adversely impact the Property as compared to the other properties that are subject to the Culinary CBA.
		
	ARTICLE 6
	 
REPRESENTATIONS OF SELLER

To induce Buyer to execute, deliver and perform under this Contract, Seller hereby represents and warrants to Buyer as of the Effective Date (except for those representations and warranties below that are made as of the Closing Date or some other date):
6.1    Organization.  Seller is duly organized and validly existing under the laws of its state of organization and has all requisite limited liability company power and authority to own, lease and operate its assets and to carry on its business as now being conducted. Seller is duly qualified or licensed to do business and is in good standing in each jurisdiction in which the property owned, leased or operated by it or the nature of the business conducted by it makes such qualification or licensing necessary, except where the failure to be so qualified, licensed or in good standing has not had or would not reasonably be expected to have, individually or in the aggregate, a Seller Material Adverse Effect.
6.2    Authority; No Conflict; Required Filings and Consents.
6.2.1    Seller has all requisite limited liability company power and authority to enter into this Contract and each of the Ancillary Agreements to which it is a party and to consummate the transactions contemplated hereby and thereby. Seller’s execution and delivery of this Contract and each Ancillary Agreement to which it is a party and the consummation by Seller of the transactions contemplated hereby and thereby have been duly authorized by all necessary limited liability company action on the part of Seller. This Contract and each such Ancillary Agreement has been or will be duly executed and delivered by Seller and, assuming this Contract and each such Ancillary Agreement constitutes the valid and binding obligation of each other party thereto, constitutes or when executed will constitute a valid and binding obligation of Seller, enforceable against Seller in accordance with its terms, subject, as to enforcement, to (i) applicable bankruptcy, insolvency, reorganization, moratorium or similar laws now or hereinafter in effect affecting creditors’ rights generally and (ii) general principles of equity (collectively, the “Enforcement Limitations”). 
6.2.2    Except as set forth in Schedule 6.2.2, the execution and delivery by Seller of this Contract and each Ancillary Agreement to which it is a party does not, and the consummation by Seller of the transactions contemplated hereby and thereby will not, (a) conflict with, or result in any violation or breach of, any provision of the organization documents of Seller, (b)  result in any violation or breach of, or constitute (with or without notice or lapse of time, or both) a default (or give rise to a right of termination, cancellation or acceleration of any obligation or loss of any material benefit) under, or require a consent or waiver under, any of the terms, conditions or provisions of any note, bond, mortgage, indenture, lease, contract or obligation to which Seller is a party or by which Seller may be bound, or (c) subject to the governmental filings and other matters referred to in Section 6.2.3, conflict with or violate in any material respect any permit, concession, franchise, license, judgment or law applicable to Seller, except in the case of clause (b), for any such breaches, conflicts, violations, defaults, terminations, cancellations, accelerations, losses or failures to obtain any such consent or waiver which would not reasonably be expected to have, individually or in the aggregate, a Seller Material Adverse Effect or would not materially impair Closing or delay Closing beyond the Outside Date. 
6.2.3    No consent, approval, order or authorization of, or registration, declaration, notification or filing with, any court, administrative agency, commission, Gaming Authority or Governmental Entity is required by or with respect to Seller in connection with the execution and delivery of this Contract by Seller or the consummation by Seller of the transactions to which it is a party that are contemplated hereby, except for (a) the filing of the pre-merger notification under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (“HSR Act”), (b) any approvals and filing of notices required under the Gaming Laws, (c) such consents, approvals, orders, authorizations, permits, filings, declarations or registrations related to, or arising out of, compliance with statutes, rules or regulations regulating the consumption, sale or serving of alcoholic beverages or the renaming or rebranding of the operations at the Property, (d) any filing of a notice under the WARN Act (the “WARN Act Notification”), which WARN Act Notification shall be subject to the provisions of Section 6.10.2, (e)  such other filings, consents, approvals, orders, authorizations, permits, registrations and declarations as may be required under the laws of any jurisdiction in which Seller conducts any business or owns any assets, the failure of which to make or obtain has not had or would not reasonably be expected to have, individually or in the aggregate, a Seller Material Adverse Effect and (f) any consents, approvals, orders, authorizations, registrations, permits, declaration or filings required by Buyer or any of its Affiliates or key employees (including under the Gaming Laws).
6.2.4    Except as set forth on Schedule 6.2.4, Seller and its Affiliates are in compliance in all material respects with all applicable laws, rules and regulations governing the collection and use of personal information and such collection and use are in accordance in all respects with the privacy policies under which the information was collected. Seller has the right to transfer the Guest Data as contemplated by this Contract and such transfer does not in any material respect violate any privacy or data security law or regulation, or any other applicable law or regulation, or violate any agreements with any individuals or third parties, including, without limitation, any privacy policies under which the information was collected. Since the Lookback Date, neither Seller nor any of its Affiliates have received any written notice or claim asserting any material violation of any applicable laws, rules and regulations governing the collection and use of personal information or any material violation of any of Seller’s privacy policies.  
6.3    New Property Owner.  
6.3.1    From formation through the Closing Date, New Property Owner shall be duly organized (or formed), validly existing and in good standing under the laws of its State of organization.
6.3.2    As of the Closing Date, (a) Seller will be the sole record and beneficial owner of the Membership Interests, free and clear of any lien (other than liens imposed under applicable securities laws or Gaming Laws or for Permitted Exceptions), (b) the Membership Interests constitute all of the outstanding equity securities of New Property Owner, and (c) except for this Contract, there are no outstanding options, warrants, rights, calls, convertible securities or other contracts obligating Seller or New Property Owner to issue, transfer or sell any equity securities of New Property Owner.
6.3.3    As of the Closing Date, New Property Owner will own (or co-own, in the case of the Guest Data) the Purchased Assets, but otherwise will have no assets.
6.3.4    As of the Closing Date, New Property Owner will have all requisite limited liability company power and authority to enter into each of the Ancillary Agreements to which it is a party and to consummate the transactions contemplated hereby and thereby. As of the Closing Date, New Property Owner’s execution and delivery of each Ancillary Agreement to which it is a party and the consummation by New Property Owner of the transactions contemplated hereby and thereby will have been duly authorized by all necessary limited liability company action on the part of New Property Owner. As of the Closing Date, each such Ancillary Agreement will be duly executed and delivered by New Property Owner and, assuming each such Ancillary Agreement constitutes the valid and binding obligation of each other party thereto, when executed will constitute a valid and binding obligation of New Property Owner, enforceable against New Property Owner in accordance with its terms, subject to the Enforcement Limitations.  The execution and delivery by New Property Owner of each Ancillary Agreement to which it is a party does not, and the consummation by New Property Owner of the transactions contemplated thereby will not, (a) conflict with, or result in any violation or breach of, any provision of the organization documents of New Property Owner or (b) subject to the governmental filings and other matters referred to in Section 6.2.3, conflict with or violate in any material respect any permit, concession, franchise, license, judgment or law applicable to New Property Owner, except, in the case of clause (b), for any such breaches, conflicts, violations, defaults, terminations, cancellations, accelerations, losses or failures to obtain any such consent or waiver which (i) would not reasonably be expected to have, individually or in the aggregate, a Seller Material Adverse Effect or (ii) would not materially impair Closing or delay Closing beyond the Closing Date. 
6.4    Property Trademarks. Exhibit H attached hereto sets forth a true and complete list of all of the (a) trademark and service mark registrations and applications, (b) material unregistered trademarks and service marks, and (c) internet domain name registrations owned by Seller or any of its Affiliates exclusively related to the Property (collectively, the “Property Marks”).  Seller is the sole and exclusive owner of all right, title and interest in the Property Marks free and clear of all liens and encumbrances (other than Permitted Exceptions).  Except for as set forth in Schedule 6.4, the Property Marks constitute all of the trademark and branding rights necessary for the Seller to conduct its respective businesses and operations at or in connection with the Property as currently being conducted.  None of the registered trademarks included in the Property Marks is now involved in any opposition or cancellation proceeding and, to Seller’s knowledge, no such proceeding is or has been threatened in writing with respect thereto.  All registered trademarks included in the Property Marks are subsisting, in full force and effect, valid, and enforceable, and none of the registered trademarks included in the Property Marks have been canceled, abandoned, expired or otherwise terminated.  Neither Seller nor any of its Affiliates has received any written notice or claim challenging the ownership, validity or enforceability of any of the Property Marks that remains pending or unresolved.  To Seller’s knowledge, Seller’s conduct of its respective businesses and operations at, and in connection with, the Property has not and does not infringe, misappropriate, or otherwise violate any intellectual property rights of any third party.  Neither Seller nor any of its Affiliates has received any written notice or claim in which the Seller’s or any of its Affiliates’ conduct of its respective businesses and operations at, or in connection with, the Property is alleged to infringe, misappropriate, or otherwise violate any intellectual property rights of any third party, except for any such notice or claim that would not reasonably be expected to have, individually or in the aggregate, a Seller Material Adverse Effect.  To Seller’s knowledge, (i) no Person has infringed, misappropriated, or otherwise violated, or is infringing, misappropriating, or otherwise violating, any Property Marks, and (ii) no claims asserting that any such infringement, misappropriation or violation are pending or, since the Lookback Date, have been threatened in writing against any Person by the Seller or any of its Affiliates, in each case except for any such infringement, misappropriation or violation that has not had or would not reasonably be expected to have, individually or in the aggregate, a Seller Material Adverse Effect. 
6.5    Environmental Matters.  
6.5.1    Seller has obtained all material permits, licenses or approvals required pursuant to Environmental Law (“Environmental Permits”) necessary to conduct its respective businesses and operations at the Property, and all such Environmental Permits are valid and in full force and effect.
6.5.2    Seller is in compliance in all material respects with all Environmental Laws and all Environmental Permits. To Seller’s knowledge, no environmental report relating to the Property has been delivered to Seller since September 1, 2018.
6.5.3    Seller (a) is not subject to any pending or, to Seller’s knowledge, threatened (in writing) proceeding regarding Environmental Laws, and (b) is not in receipt of a written notice from a Governmental Entity alleging a violation of or liability under any Environmental Law which has not been addressed and cured in accordance with Environmental Laws. 
6.5.4    Except as expressly set forth in the environmental report obtained by Buyer prior to the Effective Date (the “Buyer’s Environmental Report”), no Hazardous Materials are located at, on or under the Property that has given rise to any pending obligation to conduct, or would reasonably be expected to require, any cleanup, investigation or other remedial action pursuant any Environmental Law.
6.5.5    Notwithstanding anything to the contrary contained in this Contract, the representations and warranties in this Section 6.5 constitute the sole and exclusive representations and warranties of Seller with respect to any liabilities under or related to any Environmental Law; provided, however, that the foregoing provision shall not obviate or limit any of Tenant’s Property Lease Obligations once the same is executed and delivered.
6.6    Property.
6.6.1    Schedule 6.6.1 sets forth a true and complete list of all documents and agreements as of the Effective Date pursuant to which Seller leases, licenses, subleases or permits the occupancy of all or any portion of the Property to another Person (each, together with any Person that executes a Lease to occupy all or any portion of the Property after the Effective Date, an “Existing Tenant”), together with all amendments, modifications, extensions, renewals, and replacements thereof, and other documents and agreements relating thereto (collectively, the “Leases”); provided, however, that the foregoing representation is limited to Seller’s knowledge for any Leases that are Non-Material Leases. Prior to the Effective Date, Seller has made available to Buyer true and complete (in all material respects) copies of the Leases (including those Non-Material Leases of which Seller has knowledge).
6.6.2    As of the Effective Date, there are no leasing brokerage agreements entered into by Seller with respect to the leasing of space at the Property.
6.6.3    Except as set forth on Schedule 6.6.3, as of the Effective Date, there are no material unpaid tenant improvement allowances, free rent or other monetary obligations owed by Seller as a tenant inducement to any Existing Tenant.
6.6.4    There are no options to purchase or rights of first refusal outstanding for the sale or transfer of all or any portion of the Property.  There are no other obligations outstanding for the sale or transfer of all or any portion of the Property, except (a) for the liens and security interests in the Property created pursuant to the Existing Loan, (b) for the leasing or subleasing of space at the Property pursuant to Leases that do not contain options to purchase or rights of first refusal to purchase all or any portion of the Property or (c) obligations that are otherwise permitted or created by this Contract.
6.6.5    In the past five (5) years, Seller has not received written notice of any condemnation or eminent domain proceeding pending or threatened in writing against the Property or any part thereof and no written notice from any Governmental Entity has been received by Seller concerning the possible imposition of any special assessments against the Property except for any special assessments set forth in the Permitted Exceptions.
6.6.6    Seller is not is a “foreign person” within the meaning of Section 1445 of the Code.
6.6.7    As of the Effective Date, there is no action, suit or proceeding, claim, arbitration or investigation pending against Seller or, to Seller’s knowledge, threatened in writing against Seller that would prevent the closing of the transactions contemplated by this Contract.
6.7    Permits. Seller, and to the knowledge of Seller, each of its directors, managers, officers and Persons performing management functions similar to officers, hold all material permits, registrations, findings of suitability, licenses, variances, exemptions, certificates of occupancy, orders and approvals of all Governmental Entities (including all Gaming Approvals), necessary to conduct the business and operations of the Property conducted by Seller as of the Effective Date, each of which is in full force and effect in all material respects (the “Permits”).  Since the Lookback Date, Seller has received no written notice of any and, to the knowledge of Seller, no event has occurred or condition or state of facts exists that permits, or upon the giving of notice or passage of time or both, would permit, revocation, non-renewal, modification, suspension, limitation or termination of any of the Permits that currently are in effect. 
6.8    Tangible Personal Property.  Seller is in possession of and has good title to all tangible personal property owned by Seller and included in the Purchased Assets which are or will be at Closing free and clear of all liens and encumbrances (other than Permitted Exceptions).  Exhibit E attached hereto as of the Effective Date is a true and complete inventory list of all Owned Slot Machines and Gaming Tables as of such date.
6.9    Compliance With Applicable Laws, Rules, Regulations, Contracts or Other Agreements.  Seller and its Affiliates are in compliance in all respects with all applicable laws, rules and regulations and all obligations and requirements imposed by contract or other agreement, related to the Property and the operation of the same, in each case except as has not had or would not reasonably be excepted to have, individually or in the aggregate, a Seller Material Adverse Effect.
Prior to Closing, Seller shall have the right to amend and otherwise modify the representations and warranties made by Seller by written notice thereof to Buyer to reflect any change in facts or circumstances first occurring after the Effective Date not resulting from a breach or default by Seller or its Affiliates under this Contract.
6.10    Labor and Employee Matters.
6.10.1    On or prior to the Closing Date, Seller shall (or shall cause Tenant to) continue employment at the Property, commencing on the Closing Date, of (a) all of the Employees represented by the Unions who were employed at the Property by Seller (or its Affiliates) on the day immediately preceding the Closing Date on terms and conditions that are in compliance with the Collective Bargaining Agreements and (b) a sufficient number of Employees, including those on vacation, leave of absence, disability or layoff, who were employed at the Property on the day immediately preceding the Closing Date, on such terms and conditions (including without limitation compensation, salary, employee benefits, job responsibility and descriptions, location, seniority and deemed length of service) as is necessary to avoid liability under the WARN Act without the need for giving any WARN Act Notification of any “plant closing,” “mass layoff” or similar notices.  
6.10.2    Seller has not, prior to the Effective Date, and shall not, at any time after the Effective Date and prior to Closing Date, effectuate a “plant closing” or “mass layoff” as those terms are defined in the WARN Act, affecting in whole or in part any Employee. 
6.10.3    Except as set forth in Schedule 6.10.3 of this Agreement, neither Seller nor, to Seller's knowledge, Tenant is a party to, or bound by, any collective bargaining agreement or similar labor agreement covering any of the Employees or relating to the Property and the Unions are the only unions representing employees at the Property. Seller has delivered or otherwise made available to Buyer a true, correct and complete copy of the Collective Bargaining Agreements. Except as set forth in Schedule 6.10.3, Seller is not making contributions (and does not have an obligation to make contributions), and Tenant (or its Affiliate) is not making contributions on behalf of Seller to any Multiemployer Pension Plans.  To Seller's Knowledge, neither the Seller nor Tenant is in default of any material obligation under the Collective Bargaining Agreements.  Seller has complied with all notice requirements under the Collective Bargaining Agreements related to the sale of the Property.
6.10.4    To Seller's knowledge, there are no threatened labor strikes or slowdowns, and no work stoppages are pending, or have occurred within the last three years at the Property.
6.10.5    Each Employee Benefit Plan maintained by the Seller and its ERISA Affiliates is operated and administered in compliance in all material respects with, as applicable, the provisions of ERISA, the Code, all regulations, rulings, and announcements promulgated or issued thereunder, and all other applicable laws.  All material reports required by any Governmental Entity with respect to the Employee Benefit Plans have been timely filed or are properly on extension.  Each group health plan maintained by Seller and its ERISA Affiliates has been operated and administered in compliance in all material respects with the continuation coverage notice requirements of Title I, Subtitle B, Part 6 of ERISA and Code section 4980B and the regulations thereunder.  For purposes of this Agreement, the term "group health plan" will have the meaning set forth in Code section 5000(b)(1).
6.10.6    Neither Seller nor, to Seller’s knowledge, its ERISA Affiliates have engaged in any transaction that would subject them to either a civil penalty assessed pursuant to ERISA section 502(i) or tax imposed by Code section 4975.  
6.10.7    On or prior to the Closing Date, Buyer shall have executed the Owner & Operator Letter substantially in the form attached hereto as Exhibit Q or in such alternative form as is acceptable to the union, acknowledging (a) that Buyer is aware of the collective bargaining agreement covering members of the union at the Property, (b) that Buyer agrees to assume and comply with the successorship provisions of the collective bargaining agreement which are applicable to owner and (c) that Tenant is the operator and is making contributions to the union's pension fund on behalf of Buyer.  
6.10.8       In connection with the Teamsters and Engineers Collective Bargaining Agreements, Seller shall execute and deliver to the Buyer a notice substantially in the form of Exhibit R and shall provide copies to the Teamsters and Engineers unions.
ARTICLE 7     
REPRESENTATIONS OF BUYER
To induce Seller to execute, deliver and perform under this Contract, Buyer hereby represents and warrants to Seller as of the Effective Date:
7.1    Organization.  Buyer is duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate or similar power and authority to carry on its business as now being conducted. Buyer is duly qualified or licensed to do business and is in good standing in each jurisdiction in which the property owned, leased or operated by it or the nature of the business conducted by it makes such qualification or licensing necessary, except where the failure to be so qualified, licensed or in good standing has not had or would not reasonably be expected to have, individually or in the aggregate, a Buyer Material Adverse Effect.
7.2    Authority; No Conflict; Required Filings and Consents.
7.2.1    Buyer has all requisite corporate or similar power and authority to enter into this Contract and each of the Ancillary Agreements to which it is a party and to consummate the transactions contemplated hereby and thereby. Buyer’s execution and delivery of this Contract and each Ancillary Agreement to which it is a party and the consummation by Buyer of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate or similar action on the part of Buyer. This Contract and each such Ancillary Agreement has been or will be duly executed and delivered by Buyer and, assuming this Contract and each such Ancillary Agreement constitutes the valid and binding obligation of each other party thereto, constitutes the valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms, subject, as to enforcement, to the Enforcement Limitations.
7.2.2    The execution and delivery by Buyer of this Contract and each Ancillary Agreement to which it is a party does not, and the consummation by Buyer of the transactions contemplated hereby and thereby will not, (a) conflict with, or result in any violation or breach of, any provision of the organizational documents of Buyer, (b) result in any violation or breach of, or constitute (with or without notice or lapse of time, or both) a default (or give rise to a right of termination, cancellation or acceleration of any obligation or loss of any material benefit) under, or require a consent or waiver under, any of the terms, conditions or provisions of any note, bond, mortgage, indenture, lease, contract or obligation to which Buyer is a party or by which Buyer or any of its properties or assets may be bound, or (c) subject to the governmental filings and other matters referred to in Section 7.2.3, conflict with or violate any permit, concession, franchise, license, judgment or law applicable to Buyer or any of its properties or assets, except, in the case of clauses (b) and (c), for any such conflicts, violations, defaults, terminations, cancellations, accelerations losses or failures to obtain any such consent or waiver which (i) would not reasonably be expected to have, individually or in the aggregate, a Buyer Material Adverse Effect or (ii) would not delay or prevent Closing.
7.2.3    No consent, approval, order or authorization of, or registration, declaration or filing with, any Governmental Entity is required by or with respect to Buyer in connection with the execution and delivery of this Contract by Buyer or the consummation by Buyer of the transactions to which it is a party that are contemplated hereby, except for (a) the filing of the pre-merger notification report under the HSR Act, (b) any approvals and filing of notices required under the Gaming Laws, (c) any WARN Act Notification and/or other notification required to be made by Seller pursuant to law, contract or other agreement, (d) such consents, approvals, orders, authorizations, permits, filings, declarations or registrations related to, or arising out of, compliance with statutes, rules or regulations regulating the consumption, sale or serving of alcoholic beverages or tobacco or the renaming or rebranding of the operations at the Property, (e) such other filings, consents, approvals, orders, authorizations, permits, registrations and declarations as may be required under the laws of any jurisdiction in which Buyer conducts any business or owns any assets, the failure of which to make or obtain has not had or would not reasonably be expected to have, individually or in the aggregate, a Buyer Material Adverse Effect and (f) any consents, approvals, orders, authorizations, registrations, permits, declarations or filings required by Seller or its Affiliates or key employees (including under the Gaming Laws).  
7.3    Financing.
7.3.1    Pursuant to Section 5.7.3, Buyer has delivered to Seller information regarding the Identified Equity Financing Sources. Furthermore, Buyer has delivered to Seller true and complete copies of the executed mortgage loan and senior mezzanine loan term sheet, dated on or prior to the Effective Date, from the lenders described therein relating to the transactions contemplated by this Contract (such lenders, together with certain additional lenders that are expected to provide a junior mezzanine loan pursuant to a Junior Mezzanine Loan Term Sheet, the “Debt Financing Sources” and collectively, such letters together with any executed Junior Mezzanine Loan Term Sheet, the “Debt Financing Letters”), pursuant to which the Debt Financing Sources have agreed, subject to the terms and conditions set forth therein, to provide to Buyer (directly or indirectly) the debt financing described in the Debt Financing Letters (the “Debt Financing”, together with the Equity Financing to be provided by the Identified Equity Financing Sources, the “Financing”), in each case for the purposes of funding the transactions contemplated by this Contract and paying Buyer’s related fees and expenses. The aggregate amount of the net proceeds contemplated by the Financing, together with the Seller Financing (if timely elected by Buyer pursuant to Section 5.4.7) and any of Buyer's cash on hand, will be sufficient to pay all amounts required to be paid by Buyer hereunder and all related fees and expenses then payable by Buyer under the Financing and in connection with the transactions contemplated by this Contract.
7.3.2    The executed Debt Financing Letters have not been amended, modified, supplemented, terminated or withdrawn in any way. No such amendment, modification, supplement, termination or withdrawal is contemplated. Any and all commitment fees or other fees in connection with the Financing that are payable on or prior to the Effective Date have been paid by or on behalf of Buyer.
7.3.3    The executed Debt Financing Letters have (a) the legal, valid and binding obligation of Buyer and, to the knowledge of Buyer, each of the other parties thereto, (b) enforceable in accordance with its terms against Buyer and, to the knowledge of Buyer, each of the other parties thereto, subject to general principles of equity and to bankruptcy, insolvency, reorganization, moratorium or other similar laws presently or hereafter in effect affecting the rights of creditors or debtors generally, and (c) in full force and effect. No event has occurred that, with or without notice, lapse of time, or both, would or would reasonably be expected to constitute a default or breach under the Debt Financing Letters on the part of Buyer, or, to the knowledge of Buyer, any of the other parties thereto, or result in the failure of any condition precedent under the Debt Financing Letters to be satisfied. Buyer has no reason to believe that any of the conditions to the Financing will not be satisfied or that the Financing will not be made available to Buyer on the Closing Date. 
7.3.4    None of the Financings involve, and Buyer has no view or intention to obtain, any financing from, or otherwise assign any or all of its rights under this Contract to, Landscape Acquisition Holdings Limited or any other special purpose acquisition company or cash shell listed on the main market or AIM of the London Stock Exchange or any other similar exchange of any jurisdiction, or otherwise allow any such Person to directly or indirectly participate in the transaction contemplated by this Contract. 
7.3.5    Buyer has the financial wherewithal to make the Additional Deposit as such Additional Deposit becomes due pursuant to the terms of this Contract.
7.4    Litigation.  There are no actions, claims, suits or proceedings pending or, to Buyer’s knowledge, threatened against Buyer before any Governmental Entity which, if determined adversely, could prevent or materially delay Buyer from completing the transactions contemplated by this Contract.
7.5    Solvency.  After giving effect to the transactions contemplated by this Contract (including the payment of all amounts required to be paid by Buyer pursuant hereto and the Financing), each of Buyer and New Property Owner will be Solvent immediately after Closing.  For purposes hereof, “Solvent”, when used with respect to either Buyer or New Property Owner, means that, as of any date of determination: (a) the amount of the “fair saleable value” of the assets of such entity will, as of such date, exceed the sum of (i) the value of all “liabilities of such entity, including a reasonable estimate of the amount of all contingent and other liabilities,” as of such date, as such quoted terms are generally determined in accordance with applicable laws governing determinations of the insolvency of debtors, and (ii) the amount that will be required to pay the liabilities of such entity on its existing debts (including a reasonable estimate of the amount of all contingent and other liabilities) as such debts become absolute and mature; (b) such entity will not have, as of such date, an unreasonably small amount of capital for the operations of the businesses in which it is engaged; and (c) such entity will be able to pay its liabilities, including contingent and other liabilities, as they mature.  For purposes of this definition, “not have an unreasonably small amount of capital for the operation of the businesses in which it is engaged” and “able to pay its liabilities, including contingent and other liabilities, as they mature” means that such entity will be able to generate enough cash from operations, asset dispositions or refinancing, or a combination thereof, to meet its obligations as they become due.
7.6    Waiver of Buyer’s Further Due Diligence Investigation.  Buyer acknowledges that it is familiar with the business of Seller and has had the opportunity, directly or through its representatives, to inspect the Property and the other Purchased Assets and conduct due diligence activities with respect to Seller, including with respect to the Property and the other Purchased Assets. Without limitation of the foregoing, Buyer acknowledges that the Purchase Price has been negotiated based on Buyer’s express agreement that there would be no conditions or other contingencies to consummation of the transactions contemplated by this Contract other than the conditions set forth in Article 8.  Further, without limiting any representation, warranty or covenant of Seller expressly set forth herein, Buyer acknowledges that it has waived and hereby waives as a condition to Closing any further due diligence reviews, inspections or examinations with respect to the Membership Interests, Property, FF&E, Property Marks and Guest Data, including with respect to engineering, environmental, survey, financial, operational, regulatory and legal compliance matters.
7.7    Investment Purpose. Buyer is acquiring the Membership Interests solely for its own account for investment purposes and not with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act of 1933, as amended (the “Securities Act”), or any other applicable securities law. Buyer acknowledges that the Membership Interests are not registered under the Securities Act or any state securities laws, and that the Membership Interests may not be transferred or sold except pursuant to the registration provisions of the Securities Act or pursuant to an applicable exemption therefrom and subject to state securities laws, as applicable. Buyer is able to bear the economic risk of holding the Membership Interests for an indefinite period (including total loss of its investment), and has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risk of its investment. Buyer is an “accredited investor” as defined in Rule 501(a) of Regulation D promulgated under the Securities Act.  
ARTICLE 8     
CONDITIONS PRECEDENT, DEFAULT AND TERMINATION
8.1    Buyer’s Closing Conditions.  The obligation of Buyer to complete the transaction contemplated by this Contract is subject to the following conditions precedent (and conditions concurrent, with respect to deliveries to be made by the parties at the Closing) (collectively, the “Buyer’s Closing Conditions”), which conditions may be waived, or the time for satisfaction thereof extended, by Buyer only in a writing executed by Buyer (provided, however, that Buyer’s acceptance of the Deed shall be deemed to be a waiver of any unsatisfied conditions regardless of whether Buyer executes a separate written instrument to that effect at the Closing): 
8.1.1    Seller’s Due Performance.  (a) The representations and warranties of Seller set forth in Sections 6.1 and 6.2 and the representations and warranties of New Property Owner set forth in Section 6.3 shall be true and correct in all material respects as of the Closing Date, (b) all of the other representations and warranties of Seller set forth in this Contract shall be true and correct in all respects as of the Closing Date, except in the case of this clause (b), where the failure of such representation or warranty to be so true and correct has not had and would not reasonably be expected to have, individually or in the aggregate, a Seller Material Adverse Effect and (c) Seller, on or prior to the Closing Date, shall have complied with and/or performed in all material respects all of the obligations, covenants and agreements required on the part of Seller to be complied with or performed as of such date pursuant to the terms of this Contract.
8.1.2    Bankruptcy.  No action or proceeding shall have been commenced by or against Seller, New Property Owner or Guarantor under the federal bankruptcy code or any state law for the relief of debtors or for the enforcement of the rights of creditors and be pending as of the Closing Date.
8.1.3    Deliveries.  Seller and New Property Owner, as applicable, shall have delivered to the Escrow Agent or Buyer, as the case may be, such documents or instruments as are required to be delivered by Seller or New Property Owner pursuant to the terms of this Contract.
8.1.4    No Legal Impediment. There shall not be in effect as of the Closing Date any law, or any injunction or order of any governmental or judicial authority of competent jurisdiction prohibiting, restraining, enjoining or otherwise preventing the consummation of the transactions contemplated by this Contract.
8.1.5    HSR Act.  Any applicable waiting periods, together with any extensions thereof, under the HSR Act shall have expired or been terminated on or prior to the Closing Date.
8.1.6    Lien or Judgment. If Buyer shall have timely delivered to Seller written notice (an “Objection Notice”) of an Objection with respect to a Lien or Judgment contemplated by clause (iv) of Section 3.2 with a value exceeding $15,000,000 (a “Qualifying LJ”) in accordance with Section 3.2, Seller shall have either (at Seller’s sole discretion) (a) removed such Qualifying LJ or caused such Qualifying LJ to be removed on or prior to the Closing Date or (b) bonded over such Qualifying LJ, escrowed sufficient funds with the Title Insurer, indemnified the Title Insurer or taken any other similar action at or prior to Closing such that such Qualifying LJ is omitted from the Title Policy (or is otherwise insured over by the Title Insurer) without additional cost to Buyer. Seller may elect not to (in its sole discretion) remove, bond over or otherwise satisfy such Qualifying LJ and must deliver written notice of such election (an “Election Notice”) to Buyer within two (2) Business Days following the delivery of the applicable Objection Notice to Seller, in which case Buyer shall have the right to elect to (in its sole discretion), upon written notice to Seller delivered within two (2) Business Days following the delivery of such Election Notice, either (i) waive the closing condition under this Section 8.1.6 and close Escrow in accordance with this Contract with a credit to the Purchase Price in the amount of $15,000,000 or (ii) not waive such closing condition and terminate this Contract (which right must be exercised in such notice from Buyer). If Buyer exercises the termination right contemplated by the foregoing clause (ii) and, at the time of such termination, all of Seller’s Closing Conditions were then satisfied (other than (A) the condition set forth in Section 8.4.4 (except where any direct or indirect action or inaction by Buyer or any of its Equity Financing Sources is a cause of such failure), (B) those conditions that by their nature are to be satisfied at Closing and (C) the condition set forth in Section 8.4.6), then (1) the Deposit shall be returned to Buyer and (2) Seller shall pay Buyer’s Pursuit Costs (up to $5,000,000). 
8.2    Failure of Buyer’s Closing Conditions.  If any of Buyer’s Closing Conditions have not been fulfilled within the applicable time periods and such failure to fulfill a condition is not cured by Seller within ten (10) Business Days after written notice thereof from Buyer, Buyer may:
8.2.1    Waive the Buyer’s Closing Condition and close Escrow in accordance with this Contract, without adjustment or abatement of the Purchase Price; or
8.2.2    Terminate this Contract by written notice to Seller and the Escrow Agent, in which event (a) all documents and instruments delivered into Escrow shall be returned to the party that delivered the same into Escrow (other than the Deposit, which shall be delivered to Seller (except as contemplated by Section 8.3)), (b) to the extent that the failure of any applicable Buyer’s Closing Condition is caused by a Seller default, Seller shall pay for all of the cancellation charges of the Title Insurer and the Escrow Agent, if any, and Buyer shall be entitled to pursue its rights and remedies pursuant to the terms of Section 8.3, and (c) neither party shall have any further liability or obligation hereunder except as to those obligations which provide that they survive the termination of this Contract.
8.3    Buyer’s Remedies. 
8.3.1    In the event that Closing fails to occur as a result of the default of Seller in the performance of its obligations under this Contract where such default has given rise to a failure of the condition set forth in Section 8.1.1(c) to be satisfied within the applicable time period (but only if Seller has failed to cure such default within ten (10) Business Days after written notice thereof from Buyer), then upon notice to Seller and the Escrow Agent to that effect, Buyer may, as its sole remedy, elect to either (a) (i) terminate this Contract, (ii) receive a return of the Deposit and (iii) require Seller to pay to Buyer the Pursuit Costs incurred by Buyer up to a maximum of $5,000,000 or (b) seek the specific performance of this Contract within thirty (30) days following the scheduled Closing Date and recover from Seller its reasonable attorney’s fees and costs incurred in connection with such specific performance action as permitted pursuant to Section 17.9; provided, however, that if Seller or any of its Affiliates has taken an action that actually prohibits or frustrates Buyer’s ability to obtain the remedy of specific performance, then Buyer may, in addition to recovering such fees and costs pursuant to Section 17.9, proceed under clause (a) above.  
8.3.2    In the event that (a) Closing fails to occur as a result of a failure of the conditions set forth in Section 8.1.1(a), 8.1.1(b), 8.1.2, 8.1.3, 8.1.4 (except where any direct or indirect action or inaction by Buyer or any of its Equity Financing Sources is a cause of such failure) or 8.1.6 and (b) the condition set forth in Section 8.1.5 and all of the conditions set forth in Section 8.4 shall have been satisfied other than (i) the condition set forth in Section 8.4.4 (except where any direct or indirect action or inaction by Buyer or any of its Equity Financing Sources is a cause of such failure), (ii) those conditions that by their nature are to be satisfied at Closing, (iii) the condition set forth in Section 8.4.6 and (iv) the condition set forth in Section 8.4.7 (the parties hereto agreeing that Section 5.7.2 governs entitlement to the Deposit in the event of a Suitability Problem), then upon written notice to Seller and the Escrow Agent to that effect, Buyer may, as its sole and exclusive remedy, elect to terminate this Contract and receive a return of the Deposit.
8.3.3    Notwithstanding anything to the contrary herein, the failure of a condition precedent caused by the action or inaction of a third party not in the control of Seller shall not be deemed a default by Seller in the fulfillment of an obligation. 
8.4    Seller’s Closing Conditions.  The obligation of Seller to complete the transaction contemplated by this Contract is subject to the following conditions precedent (and conditions concurrent, with respect to deliveries to be made by the parties at the Closing) (collectively, the “Seller’s Closing Conditions”), which conditions may be waived, or the time for satisfaction thereof extended, by Seller only in a writing executed by Seller: 
8.4.1    Buyer’s Due Performance.  All of the representations and warranties of Buyer set forth in this Contract shall be true and correct in all material respects as of the Closing Date, and Buyer, on or prior to the Closing Date, shall have complied with and/or performed in all material respects all of the obligations, covenants and agreements required on the part of Buyer to be complied with or performed as of such date pursuant to the terms of this Contract.
8.4.2    Bankruptcy.  No action or proceeding shall have been commenced by or against Buyer under the federal bankruptcy code or any state law for the relief of debtors or for the enforcement of the rights of creditors.
8.4.3    Deliveries.  Buyer shall have delivered to the Escrow Agent or Seller, as the case may be, such documents or instruments as are required to be delivered by Buyer pursuant to the terms of this Contract.
8.4.4    No Legal Impediment. There shall not be in effect as of the Closing Date any law, or any injunction or order of any governmental or judicial authority of competent jurisdiction prohibiting, restraining, enjoining or otherwise preventing the consummation of the transactions contemplated by this Contract. 
8.4.5    HSR Act.  Any applicable waiting periods, together with any extensions thereof, under the HSR Act shall have expired or been terminated on or prior to the Closing Date.
8.4.6    Outside Date.  The Closing shall have occurred no later than the Outside Date.
8.4.7    Suitability.  (a) There shall have been no determination by Seller that a Suitability Problem exists and/or (b) if Buyer is or becomes required to be licensed by any Gaming Authority in the State of Nevada, Buyer shall be so licensed.  If Buyer is required to be licensed by any Gaming Authority in the State of Nevada, then Buyer may begin the application process at any time after the Effective Date and Seller shall cooperate (at no expense to Seller) with any reasonable requests of Buyer or any request of such Gaming Authority in connection therewith. 
8.4.8    Culinary CBA.  On or prior to the Closing Date, Buyer shall have, pursuant to Article 27 of the Culinary CBA, executed and become signatory, as Owner, to the Culinary CBA by executing the Owner & Operator Letter as set forth in Exhibit Q hereto, or in such alternative form as is acceptable to the union, and shall acknowledge in writing that, by and through such execution, Buyer is assuming the Culinary CBA as Owner in accordance with the successorship provision in Article 27 from and after the Closing Date, including the obligation to have Seller make pension contributions on its behalf. On or prior to the Closing Date, Seller shall have executed in writing the Owner and Operator Letter as set forth in Exhibit Q hereto as required by Section 27.02 of the Culinary CBA and thereby acknowledging that Seller continues to have obligations under the Culinary CBA as Operator of the Property.
8.4.9    Seller Financing. Buyer shall have delivered to Seller definitive agreements with respect to the Seller Financing, in form reasonably acceptable to Seller, duly executed by each of the parties thereto (other than Seller or any of its Affiliates).
8.5    Failure of Seller’s Closing Conditions.  If any of Seller’s Closing Conditions have not been fulfilled within the applicable time periods and such failure to fulfill a condition is not cured by Buyer within ten (10) Business Days after written notice thereof from Seller, Seller may:
8.5.1    Waive the Seller’s Closing Condition and close Escrow in accordance with this Contract; or 
8.5.2    Terminate this Contract by written notice to Buyer and the Escrow Agent, in which event (a) the Escrow Agent shall deliver any previously undelivered Deposit to Seller (which, together with the amount of the Deposit previously released to Seller, Seller shall retain as liquidated damages, as its sole and exclusive remedy hereunder, in accordance with the terms of Section 8.6), except as otherwise contemplated by Section 5.7.2, 8.3.1 and 8.3.2, (b) the Escrow Agent shall return all other documents, instruments and funds delivered into Escrow to the party that delivered the same into Escrow, (c) to the extent that the failure of any applicable Seller’s Closing Conditions is caused by a Buyer default, Buyer shall pay for all of the cancellation charges of the Title Insurer and the Escrow Agent, if any, and (d) neither party shall have any further liability or obligation hereunder except as to those obligations which provide that they survive the termination of this Contract.
8.6    Seller’s Sole Remedy. Prior to entering into this Contract, Buyer and Seller have considered the damages that would be suffered by Seller in the event of a default by Buyer of its obligation to purchase the Membership Interests.  Given all the factors which directly affect the value and marketability of the Property and the other Purchased Assets, the parties realize that it would be extremely difficult and impracticable, if not impossible, to ascertain with any degree of certainty the amount of damages which would be suffered by Seller in the event of Buyer’s failure to perform its obligations under this Contract to purchase the Membership Interests.  The parties hereby agree that a reasonable amount of liquidated damages is an amount equal to the Deposit. If this Contract terminates for any reason other than Seller’s breach or default of its obligations hereunder, then Buyer shall deliver to Seller, at no charge, any and all documents which Seller may reasonably require for the purpose of removing any cloud on title to the Property or other Purchased Assets created by the execution of this Contract.  Notwithstanding the foregoing or anything herein to the contrary, Seller’s rights or remedies shall not be limited with respect to: (a) the obligations of Buyer under Article 5, Article 10 and Section 17.9, and (b) those other rights and obligations that, by their terms, survive the termination of this Contract.
8.7    Limitation on Damages. Notwithstanding anything in this Agreement to the contrary, in no event shall Buyer or Seller be liable for any consequential, speculative or punitive damages under this Contract.
8.8    Indemnification for UST Matters.
8.8.1    Indemnification. From the Closing Date until the eighteen (18) month anniversary of the Property Lease Expiration Date, Seller shall indemnify Buyer from all liabilities, losses, damages, fines and reasonable and documented out-of-pocket costs and expenses incurred or suffered by Buyer solely to the extent they constitute UST Liabilities. 
8.8.2    Limitations. Seller shall not be obligated to provide any indemnification under Section 8.8.1 (a) in excess of $50,000 in the aggregate and (b) to the extent the relevant UST Liability is discovered, caused, triggered, increased or accelerated by (i) any direct or indirect act or omission of Buyer or any of its Affiliates (including any sampling or analysis of any soil, groundwater or vapors) unless a Governmental Entity of competent jurisdiction has required such action or omission to be taken or not taken or (ii) any changes in applicable laws coming into effect following Closing. 
8.8.3    Exclusive Remedy. Buyer acknowledges that its sole and exclusive remedy against Seller and its Affiliates for any liabilities, losses, damages, fines, costs and expenses that constitute UST Liabilities is under this Section 8.8 and hereby waives, on its behalf and on behalf of its Affiliates, their predecessors, successors and assigns, and their respective officers, directors, employees, agents and partners, to the fullest extent permitted under applicable Law, any claim or remedy against Seller or its Affiliates now or hereafter available with respect to any UST Liability, except as expressly set forth in this Section 8.8.
8.8.4    General Matters. 
(a)As promptly as is reasonably practicable after becoming aware of a claim for indemnification under Section 8.8.1, but in any event no later than ten (10) Business Days after first becoming aware of such claim, Buyer shall give written notice to Seller of such claim in accordance herewith (a “Claim Notice”); provided, however, that the failure of Buyer to promptly deliver such Claim Notice shall not relieve Seller of its obligations under Section 8.8.1 except to the extent that Seller shall have been prejudiced thereby. The Claim Notice shall set forth in reasonable detail (i) the facts and circumstances giving rise to such claim for indemnification, including all relevant supporting documentation, then known by Buyer, (ii) the nature of the losses suffered or incurred or expected to be suffered or incurred and (iii) the amount of losses actually suffered or incurred and, to the extent the losses have not yet been suffered or incurred, a good faith estimate of the amount of losses that could be expected to be suffered or incurred.

(b)Notwithstanding anything in this Section 8.8 to the contrary, each claim for indemnification asserted in good faith in compliance with Section 8.8.4(a) prior to the eighteen (18) month anniversary of the Property Lease Expiration Date shall survive with respect to such claim until such claim is finally resolved and payment in respect thereof, if any is required to be made under the terms of this Contract, shall have been made.

(c)Buyer shall take, and cause its Affiliates (as applicable) to (i) cooperate with Seller to the extent reasonably requested by Seller, and (ii) take all  reasonable measures that are reasonably required to prevent any contingent liability from becoming an actual liability.

(d)Notwithstanding anything to the contrary in this Agreement, the amount of any UST Liabilities incurred or suffered by Buyer shall be calculated after giving effect to (i) any insurance proceeds received from unaffiliated third parties by Buyer (or any of its Affiliates, as applicable) with respect to such UST Liabilities (less Buyer’s collection costs and less any applicable deductible) and (ii) any recoveries obtained by Buyer (or any of its Affiliates, as applicable) from any other unaffiliated third party (less Buyer’s actual costs of collection). Buyer shall, and shall cause its Affiliates to, use commercially reasonable efforts to obtain such proceeds, benefits and recoveries, including seeking full recovery under all insurance policies issued by unaffiliated third parties covering any UST Liability, to the same extent as it would if such UST Liability were not subject to indemnification hereunder. If any such proceeds, benefits or recoveries are received by Buyer (or any of its Affiliates, as applicable) with respect to any UST Liability after Seller has made a payment to Buyer with respect thereto, Buyer (or such Affiliate, as applicable) shall promptly pay to Seller the amount of such proceeds, benefits or recoveries (up to the amount of Seller’s payment and less Buyer’s collection costs and less any deductible).

(e)Upon making any payment to Buyer in respect of any UST Liabilities, Seller will, to the extent of such payment, be subrogated to all rights of Buyer (and its Affiliates) against any third party (excluding any insurer) in respect of the UST Liabilities to which such payment relates. Buyer (and its Affiliates) and Seller will execute upon request all instruments reasonably necessary to evidence or further perfect such subrogation rights.

(f)To the extent permitted by law, any amounts payable under Section 8.8.1 shall be treated by Buyer and Seller as an adjustment to the Purchase Price.

8.9    Indemnification for Legionella Matters.  Seller and Seller’s Affiliates shall jointly and severally indemnify Buyer and its successors and assigns from all liabilities, losses, damages, fines and reasonable and documented out-of-pocket costs and expenses incurred or suffered by Buyer solely to the extent they constitute Legionnaire’s Liabilities. The provisions of this Section 8.9 shall expressly survive Closing and shall incorporate by reference Section 8.8.4 (exclusive of clause (b) thereof) with each reference therein to Section 8.8, instead referring to Section 8.9 and each reference therein to UST Liabilities instead referring to Legionnaire’s Liabilities.
8.10    Indemnification for Guest Data/Privacy Matters.  Seller and Seller’s Affiliates shall jointly and severally indemnify Buyer and its successors and assigns from all liabilities, losses, damages, fines and reasonable and documented out-of-pocket costs and expenses incurred or suffered by Buyer solely to the extent in connection with the matters set forth on Schedule 6.2.4. The provisions of this Section 8.10 shall expressly survive Closing and shall incorporate by reference Section 8.8.4 (exclusive of clause (b) thereof) with each reference therein to Section 8.8, instead referring to Section 8.10 and each reference therein to UST Liabilities instead referring to the matters set forth on Schedule 6.2.4.
8.11    Casualty. As promptly as practicable after the occurrence of a Casualty prior to the Closing Date (but in any event no later than five (5) Business Days thereafter), Seller shall notify Buyer of the occurrence of such Casualty. If such Casualty occurs prior to the Closing Date and such Casualty is a Major Casualty or a Material Business Interruption Casualty (each as defined in the Property Lease), each of Seller and Buyer shall have a period of thirty (30) days after the occurrence of such Casualty within which to elect to terminate this Contract upon written notice to the other party. Notwithstanding any other terms of this Contract, in the event this Contract is terminated pursuant to this Section 8.11, Seller shall return the Deposit to Buyer and thereafter neither Seller nor Buyer shall have any further liability to the other under this Contract except for those rights and obligations that, by their terms, survive the termination of this Contract. If no such election to terminate is timely made with respect to a Major Casualty or Material Business Interruption Casualty, each of Seller and Buyer shall be deemed to have waived its rights under this Section 8.11 with respect to such Casualty and the Closing shall proceed as scheduled subject to and in accordance with the provisions of this Contract (including, without limitation, the execution and delivery of the Property Lease by Seller and Buyer at the Closing); provided, however, that (a) Seller shall promptly submit a claim for insurance proceeds in relation to such Casualty and Seller shall engage one of the insurance adjusters referred to in clause (b)(i)(A) below to handle such claim; (b) at Closing, Seller shall (i) assign to Buyer, and/or, to the extent received by Seller prior to the Closing, credit to Buyer, against the Purchase Price, all insurance proceeds with respect to such damage to the Purchased Assets, less (A) the reasonable costs of adjustment and collection of the claim  paid to either McLarens or Crawford & Company (each of which is approved by Seller and Buyer to act as an adjuster of such claim and which adjuster shall be jointly selected by Seller and Buyer and, in the absence of an agreement, one of them shall be selected randomly) which costs shall not exceed six percent (6%) of any proceeds actually received pursuant to such claim, and (B) any proceeds applied to remedy any unsafe conditions at the Property required by applicable law or Governmental Entity and covered by Seller’s insurance, and (ii) credit to Buyer, against the Purchase Price, the amount equal to the lesser of (y) the applicable deductible with respect to such damage (to the extent not already paid by Seller) and (z) the estimated cost of restoration and repair of the damaged Purchased Assets, all of which shall constitute full compensation for the damage to the Purchased Assets and Seller shall have no responsibility for restoration or repair of the Purchased Assets or any resultant loss, directly, by subrogation, or otherwise; and (c) after Closing, Buyer shall, promptly following receipt of the insurance proceeds from the insurers, commence and diligently pursue to completion the repair of the affected portions of the Purchased Assets, including, without limitation, the improvements on the Property (but, for the avoidance of doubt, excluding any damaged Gaming Equipment and other personal property belonging to Seller after the Closing which shall be restored or replaced by Seller to the extent Seller receives insurance proceeds (but Seller shall be responsible for paying any deductible) with respect thereto) substantially to their condition immediately preceding the Casualty (or in such other manner as Seller and Buyer may otherwise agree).  If a Casualty occurs after the Closing Date, this Contract shall not terminate or be terminable and the rights and obligations of Seller (as Tenant) and the New Property Owner (as Landlord) shall be governed by the applicable casualty provisions set forth in Article 7 of the Property Lease.  This Section 8.11 is intended as an express provision with respect to casualty of the Property prior to the Closing which supersedes the provisions of the Nevada Uniform Vendor and Purchaser Risk Act.
8.12    Outside Date Determination.  As of the Effective Date, the “Outside Date” shall be November 4, 2019 (the “Initial Target Closing Date”).  The Outside Date may be extended as follows:
8.12.1    Buyer may, in its sole discretion, extend the Outside Date to December 4, 2019 (the “Extended Target Closing Date”) so long as Buyer (i) delivers written notice to Seller on or prior to October 30, 2019 of its intent to make such extension and (ii) delivers the Additional Deposit, in Immediately Available Funds, to the Escrow Agent no later than November 1, 2019 and (iii) delivers to Seller no later than November 1, 2019 either an executed Junior Mezzanine Loan Term Sheet or evidence of equity financing reasonably satisfactory to Seller that, in either case, together with the Debt Financing to be obtained pursuant to the executed Debt Financing Letters, Buyer will have sufficient debt and equity financing to close the acquisition of the Purchased Assets on the Extended Target Closing Date;
8.12.2    If, on the Initial Target Closing Date or the Extended Target Closing Date, as applicable, any of the conditions set forth in Sections 8.1.4 or  8.4.4 (in each case, solely with respect to any law, injunction or order entered pursuant to the HSR Act) or Sections 8.1.5 or 8.4.5 shall have not been satisfied, but all other conditions set forth in Sections 8.1 and 8.4 shall have been satisfied (other than those conditions that by their nature are to be satisfied at Closing), either Buyer or Seller may extend the Outside Date to January 3, 2020 by providing written notice thereof to the other party on or prior to the Business Day immediately preceding the Initial Target Closing Date or the Extended Target Closing Date, as applicable; 
8.12.3    If prior to the Initial Target Closing Date or the Extended Target Closing Date, as applicable, (x) a Gaming Authority in the State of Nevada requires that Buyer be licensed by such Gaming Authority in order to own the Purchased Assets, (y) Buyer shall have submitted, within thirty (30) days of first becoming aware of any such licensing requirement all necessary applications, filings or information to obtain such license, and (z) the condition set forth in Section 8.4.7(b) shall not have been satisfied but all of the other conditions set forth in Sections 8.1 and 8.4 shall have been satisfied (other than those conditions that by their nature are to be satisfied at Closing), either Buyer or Seller may extend the Outside Date to September 13, 2020 by providing written notice thereof on or prior to the Business Day immediately preceding the Initial Target Closing Date or the Extended Target Closing Date, as applicable (it being understood that if following such applicable date Buyer fails to (i) timely provide any information required by applicable Gaming Authorities and (ii) comply with the obligations in the third, fourth, fifth and sixth sentences of Section 5.6.1 (as though they applied to obtain such license) and Section 5.6.2 in respect of such license, Seller may terminate this Contract upon written notice to Buyer and such termination shall be treated as though this Contract was terminated due to a Buyer Bad Act Suitability Problem under Section 5.7.2; or
8.12.4    If a Major Casualty or a Material Business Interruption Casualty occurs within thirty (30) days prior to the Initial Target Closing Date or the Extended Target Closing Date, as applicable, the Outside Date will be automatically extended until the date that is thirty (30) days after such Casualty to allow Seller and Buyer to determine its election contemplated by the second sentence of Section 8.11.
ARTICLE 9     
ESCROW
9.1    Escrow.  The Escrow Agent is authorized and agrees by acceptance thereof to deposit the Deposit promptly into an interest-bearing account in an institution insured by the Federal Deposit Insurance Corporation or as otherwise instructed by Seller and Buyer in writing, and to hold same in escrow and in accordance with the terms and conditions of this Contract until same is to be distributed as provided herein.  In the event of doubt as to the Escrow Agent’s duties or liabilities under the provisions of this Contract, the Escrow Agent may, in the Escrow Agent’s sole discretion, continue to hold the subject matter of the Escrow until the parties mutually agree to disbursement thereof, or until a judgment of a court of competent jurisdiction shall determine the rights of the parties thereto, or the Escrow Agent may deposit same with the clerk of the court having jurisdiction of the dispute, and upon notifying all parties concerned of such action, all liability on the part of the Escrow Agent shall fully terminate, except to the extent of accounting for any items theretofore delivered out of Escrow.  In the event of any suit between Buyer and Seller wherein the Escrow Agent is made a party by virtue of acting as the Escrow Agent hereunder, or in the event of any suit wherein the Escrow Agent interpleads the subject matter of this Escrow, the Escrow Agent shall be entitled to recover reasonable attorney’s fees and costs incurred, said fees and costs to be charged and assessed as court costs awarded to the prevailing party.  Seller and Buyer hereby designate the Escrow Agent as the “Reporting Person” for the transaction pursuant to Section 6045(e) of the Code.
9.2    Opening of Escrow.  Promptly following mutual execution of this Contract, Buyer and Seller shall cause an escrow (“Escrow”) to be opened with the Escrow Agent (the “Opening of Escrow”) by delivery to the Escrow Agent of a fully executed copy of this Contract.  The Escrow Agent shall promptly deliver to Buyer and Seller written notice of the date of the Opening of Escrow.  This Contract shall constitute escrow instructions to the Escrow Agent as well as the agreement of the parties.  The Escrow Agent is hereby appointed and designated to act as the Escrow Agent and instructed to deliver, pursuant to the terms of this Contract, the documents and funds to be deposited into Escrow as herein provided.  The parties shall execute such additional escrow instructions (not inconsistent with this Contract as determined by counsel for Buyer and Seller) as the Escrow Agent shall deem reasonably necessary for its protection, including the Escrow Agent’s general provisions (as may be modified by Buyer, Seller and Escrow Agent).  In the event of any inconsistency between the provisions of this Contract and such additional escrow instructions, the provisions of this Contract shall govern.
ARTICLE 10     
BROKERAGE
Seller hereby represents and warrants to Buyer that Seller has not dealt with any broker or finder with respect to the Purchased Assets or any of the transactions contemplated hereby other than CBRE and Deutsche Bank Securities Inc. (together, “Seller’s Broker”), which shall be paid a commission by Seller at and only upon Closing, pursuant to separate agreements between Seller (or an Affiliate of Seller) and Seller’s Broker.  Buyer hereby represents and warrants to Seller that Buyer has not dealt with any broker or finder with respect to the Purchased Assets or any of the transactions contemplated hereby other than Seller’s Broker.  Seller shall indemnify, defend and hold Buyer harmless from any claim for brokerage commission or finder’s fee asserted by Seller’s Broker or any broker or finder or any other Person claiming to have been engaged by Seller.  Buyer shall indemnify, defend and hold Seller harmless from any claim for brokerage commission or finder’s fee asserted by any broker or finder or any other Person claiming to have been engaged by Buyer.  The provisions of this Article 10 shall survive Closing or termination of this Contract, and such indemnities are not limited by any measure of liquidated damages set forth herein.
ARTICLE 11     
CONDEMNATION
If, after the Effective Date and prior to the Closing Date, any portion of the Property is taken by exercise of the power of eminent domain or any proceedings are threatened or instituted to effect such a taking, Seller shall promptly give Buyer notice of such occurrence, and if in the commercially reasonable judgment of Buyer such condemnation is material and would frustrate the current use of the Property or any material part thereof or Buyer’s Contemplated Redevelopment, Buyer shall, within ten (10) days after receipt of such notice, elect either (a) to terminate this Contract, in which event the Deposit shall be forthwith returned to Buyer and all obligations of the parties hereunder shall cease and this Contract shall have no further force and effect, except as to those obligations which provide that they survive termination of this Contract, or (b) to close the transaction contemplated hereby as scheduled (except that if the Closing Date is sooner than ten (10) days following Buyer’s receipt of such notice, Closing shall be delayed until Buyer makes such election), without any abatement of or adjustment to the Purchase Price.  If Buyer elects to continue with Closing as provided above or no such election is timely made, then Buyer shall be deemed to have waived its termination rights under this Article 11; provided, however, that Buyer shall be entitled to all of the proceeds of any condemnation award related to the Property and Seller shall execute and deliver all documents reasonably requested of Seller in order to effectuate the foregoing.  This Article 11 is intended as an express provision with respect to condemnation of the Property prior to Closing which supersedes the provisions of the Nevada Uniform Vendor and Buyer Risk Act.
ARTICLE 12     
CLOSING
12.1    Closing.  Provided that the satisfaction or waiver of Buyer’s Closing Conditions and Seller’s Closing Conditions have occurred, Closing shall occur through Escrow on the Closing Date, or on such other date, place and/or time as the parties may mutually agree.  
12.2    Seller’s Deposits.  On or before one (1) Business Day prior to the Closing Date, Seller shall deliver to the Escrow Agent the following closing documents, each duly executed by Seller and its Affiliates (including New Property Owner), as applicable, and acknowledged, if applicable (collectively, “Seller’s Deposits”):
12.2.1    The executed Organizational Documents;
12.2.2    The Deed, together with the State of Nevada Declaration of Value form setting forth the applicable exemption from the real property transfer tax (the “Declaration of Value”);
12.2.3    A bill of sale and assignment and assumption agreement in respect of the transfer of the ownership of the FF&E and a co-ownership interest in the Guest Data (subject to the Use Restrictions) to New Property Owner in the form attached hereto as Exhibit I
12.2.4    A trademark assignment agreement in respect of the transfer of the Property Marks to New Property Owner in the form attached hereto as Exhibit J; 
12.2.5    An assignment of interests agreement in respect of the Membership Interests in the form attached hereto as Exhibit K (the “Assignment of Interests Agreement”);
12.2.6    A lease in respect of the lease of the Property and the FF&E by Seller to take effect as of the Closing Date in the form attached hereto as Exhibit L (the “Property Lease”);
12.2.7    The SNDA (as defined in the Property Lease);
12.2.8    An affidavit executed by Seller substantially in the form attached hereto as Exhibit M;
12.2.9    An updated list of Owned Gaming Equipment;
12.2.10    Documents evidencing the legal status, good standing and authority of Seller and such other documents, instruments, affidavits, certifications and confirmations as may reasonably be required by the Title Insurer or Escrow Agent to fully effect and consummate the transactions contemplated hereby, so long as they do not require Seller to expend any additional money or undertake any additional liabilities not contemplated in this Contract; and
12.2.11    The Closing Statement.
12.3    Approval of Closing Documents.  All Closing documents to be furnished by Seller or Buyer pursuant hereto the form of which is not attached to this Contract shall be in form and substance reasonably satisfactory to both Seller and Buyer.
12.4    Buyer’s Deposits.  On or before one (1) Business Day prior to the Closing Date, Buyer shall deliver to the Escrow Agent each of the following items, duly executed by Buyer, if applicable, and acknowledged, if applicable (collectively, “Buyer’s Deposits”):
12.4.1    The amount of the Purchase Price less the Paid Deposit, together with Buyer’s portion of the Closing Expenses pursuant to Section 4.2;
12.4.2    The Declaration of Value;
12.4.3    The Assignment of Interests Agreement;
12.4.4    The Property Lease; 
12.4.5    Documents evidencing the legal status, good standing and authority of Buyer and such other documents, instruments, affidavits, certifications and confirmations as may reasonably be required by the Title Insurer or Escrow Agent to fully effect and consummate the transactions contemplated hereby, so long as they do not require Buyer to expend any additional money or undertake any additional liabilities not contemplated in this Contract; and
12.4.6    The Closing Statement.
12.5    Actions by Escrow Agent.  Provided that the Escrow Agent shall not have received on or before the Business Day immediately preceding the Closing Date written notice from Buyer or Seller of the failure of any condition to the Closing or of the termination of Escrow and this Contract, when Seller has deposited into Escrow the necessary documents and authorized the Escrow Agent to take such actions, the Escrow Agent shall cause the Deed and the Declaration of Value to be recorded in the Land Records and obtain conformed copies thereof for distribution to Buyer and Seller at Closing.  Provided that the Escrow Agent shall not have received on or before the Closing Date written notice from Buyer or Seller of the failure of any condition to the Closing or of the termination of Escrow and this Contract, when Buyer and Seller have deposited into Escrow the documents and funds required by this Contract and authorized Closing, the Escrow Agent shall, in the order and manner herein below indicated, take the following actions: 
12.5.1    Funds.  Disburse all funds as follows:
12.5.1.1    pursuant to the Closing Statement, retain for the Escrow Agent’s own account all escrow fees and costs, disburse to the Title Insurer the fees and expenses incurred in connection with the issuance of the Title Policy and disburse to any other Persons entitled thereto the amount of any other Closing Expenses;
12.5.1.2    disburse to Seller an amount equal to the Purchase Price, less or plus the net debit or credit to Seller by reason of the allocations of the Closing Expenses set forth on the Closing Statement, less the amount of the Deposit previously released to Seller; and
12.5.1.3    disburse to the party who deposited the same any remaining funds in the possession of Escrow Agent after payments pursuant to Sections 12.5.1.1 and 12.5.1.2 have been completed.
12.5.2    Recording.  Cause any other documents which the parties hereto may mutually direct to be recorded in the Land Records and obtain (or retain, as applicable) conformed copies thereof for distribution to Buyer and Seller.
12.5.3    Delivery of Documents.  Deliver: (a) to Seller (i) one original of all documents deposited into Escrow by Buyer, (ii) one copy of all documents deposited into Escrow by Seller (other than any documents being recorded), and (iii) one conformed copy of each document recorded pursuant to the terms hereof; and (b) to Buyer, (i) one original of all documents deposited into Escrow by Seller, (ii) one copy of all documents deposited into escrow by Buyer (other than any documents being recorded), and (iii) one conformed copy of each document recorded pursuant to the terms hereof.
12.6    Additional Seller Deliveries. Seller shall use its commercially reasonable efforts to locate the “as built” drawings and all plans, specifications and warranties relating to the Property that are in its possession. At Closing, Seller shall deliver or make available to Buyer such drawings, plans, specifications and warranties to the extent they have been located by Seller and they are in Seller’s possession.
ARTICLE 13     
NOTICES
Any notice, request, demand, instruction or other document to be given or served hereunder or under any document or instrument executed pursuant hereto shall be in writing and shall be delivered personally with a receipt requested therefor or by facsimile or sent by a recognized overnight courier service or by United States registered or certified mail, return receipt requested, postage prepaid and addressed to the parties at their respective addresses set forth below, and the same shall be effective (i) upon receipt or refusal if delivered personally, (ii) one (1) Business Day after depositing with such an overnight courier service, (iii) three (3) Business Days after deposit in the mail if mailed; or (iv) upon the date noted on sender’s facsimile confirmation if delivered by facsimile, provided such confirmation time is prior to 5:00 p.m. Pacific Time, otherwise the facsimile will be deemed delivered on the next Business Day.  A party may change its address for receipt of notices by service of a notice of such change in accordance herewith.  All notice by facsimile shall be subsequently confirmed by United States certified or registered mail or by recognized overnight courier service.  Notices delivered by an attorney for a party shall be deemed given by such party.

		
	If to Buyer:
	Milbank LLP

55 Hudson Yards
New York, NY 10001
Attn: Kevin J. O’Shea
FAX:  (212) 822-5254
    
Milbank LLP
2029 Century Park East, 33rd Floor
Los Angeles, CA 90067
Attn: Deborah Conrad 
FAX: (213) 629-5063

		
	with a copy to:
	Imperial Companies

888 Seventh Avenue
27th Floor
New York, NY 10019
Attn: Tom Ellis
FAX:  (212) 894-7907

If to Seller:        Rio Properties, LLC
c/o Caesars Entertainment Corporation
One Caesars Palace Drive
Las Vegas, NV 89109
Attn:  Eric Hession
FAX: (702) 407-6420

with a copy to:    Rio Properties, LLC
c/o Caesars Entertainment Corporation
One Caesars Palace Drive
Las Vegas, NV 89109
Attn:  General Counsel
FAX: (702) 407-6418
                
and

corporatelaw@caesars.com
and

Brownstein Hyatt Farber Schreck, LLP
100 North City Parkway, Suite 1600
Las Vegas, Nevada 89106
Attn:  Angela Otto
FAX: (702) 382-8135

and

Mayer Brown LLP
71 South Wacker Drive
Chicago, Illinois 60606
Attn: Jodi A. Simala
FAX: (312) 706-8436

ARTICLE 14     
ENTIRE AGREEMENT, AMENDMENTS AND WAIVERS
This Contract contains the entire agreement, understanding and specification of rights and obligations of the parties with respect to the subject matter hereof, and supersedes any term sheets relating to the subject matter hereof, and the same may not be amended, modified or discharged nor may any of its terms be waived except by an instrument in writing signed by the party to be bound thereby; provided, that the Confidentiality Agreement, as modified by this Contract, and the Property Lease shall remain in full force and effect after the Closing Date and the Seller Guaranty shall remain in full force and effect after the Effective Date.  No amendment or waiver to this Article 14, Section 15.1, Section 5.4, Section 8.6, Section 17.4, Section 17.14 or defined terms used therein (or to any other provision or definition of this Contract to the extent that such amendment or waiver would modify the substance of any such foregoing Section or defined term used therein) that is adverse in any material respect to any Debt Financing Related Party shall be effective as to such Debt Financing Related Party without the written consent of such Debt Financing Related Party.
ARTICLE 15     
THIRD PARTY BENEFITS AND ASSIGNMENT
15.1    Third Party Benefits.  This Contract is for the sole and exclusive benefit of the parties hereto and their respective successors and permitted assigns, and no third party is contemplated to or shall have any rights hereunder. Notwithstanding anything to the contrary contained herein, each Debt Financing Source is intended to be, and shall be, an express third-party beneficiary of this Section 15.1, Section 5.4, Section 8.6, Article 14, Section 17.4 and Section 17.14. 
15.2    Assignment.  Neither all nor any portion of Buyer’s interest under this Contract may be sold, assigned, encumbered, conveyed, or otherwise transferred, whether directly or indirectly, voluntarily or involuntarily, or by operation of law or otherwise (including by a transfer of interests in Buyer either directly or indirectly) (collectively, a “Transfer”), without the prior written consent of Seller, which consent may be granted or denied in its sole and absolute discretion, provided that no consent of Seller shall be required for the collateral assignment of this Contract to the Debt Financing Sources. Any attempted Transfer without Seller’s required consent shall be null and void.  No Transfer shall operate to release Buyer or alter Buyer’s primary liability to perform its obligations under this Contract.  
ARTICLE 16     
TAX DISCLOSURE
Each of Seller and Buyer agree to cooperate fully with the other in completing or filing any disclosure documents or in otherwise satisfying any disclosure requirements of the Code and any state or local taxing authority.
ARTICLE 17     
MISCELLANEOUS
17.1    Further Assurances.  The parties each agree to do, execute, acknowledge and deliver all such further acts, instruments and assurances and to take all such further action before or after Closing as shall be necessary or desirable to fully carry out this Contract and to fully consummate and effect the transactions contemplated hereby.
17.2    Survival and Benefit.  
17.2.1    All agreements, indemnifications and obligations of the parties which are intended to be performed in whole or in part after Closing shall survive Closing and the same shall inure to the benefit of, and be binding upon, the respective successors and permitted assigns of the parties.  Notwithstanding the foregoing, except as otherwise expressly set forth elsewhere in this Contract, all of the representations and warranties of Buyer and Seller set forth in this Contract shall survive the Closing Date for a period of twelve (12) months only; provided, Seller shall not have any liability or obligation with respect to any representation or warranty contained herein unless on or prior to a date which is not later than twelve (12) months following the Closing Date Buyer shall have notified Seller in writing setting forth specifically the representation or warranty allegedly breached, and a description of the alleged breach in reasonable detail.  Notwithstanding anything herein to the contrary, in no event shall such liability of Seller for the breach of its representations and warranties set forth in this Contract (a) accrue until the aggregate amount of damages incurred by Buyer exceeds One Million Five Hundred Thousand and No/100 Dollars ($1,500,000) (the “Deductible”), in which case Seller only shall be liable for damages in excess of the Deductible, or (b) exceed, in the aggregate, the sum of Twenty-Five Million and No/100 Dollars ($25,000,000.00).  All liabilities and obligations of Seller under any representation or warranty made by Seller under this Contract shall lapse and be of no further force or effect with respect to any matters not contained in a written notice delivered as contemplated above on or prior to twelve (12) months following the Closing Date.
17.2.2    After Closing, the right to damages as limited by Section 17.2.1 shall constitute the sole and exclusive remedy of Buyer for any claim arising out of, resulting from or incurred in connection with any claims regarding matters arising under or otherwise relating to this Contract or the subject matter hereof; provided, that (a) in the event of Fraud by Seller, Buyer shall have all remedies available at law or in equity (including for tort) with respect thereto and (b) in no event shall the Property Lease Obligations, including any representations or warranties by Seller, as Tenant under the Property Lease, be subject to the provisions of this Section 17.2.2.  For purposes hereof, “Fraud” means the making by Seller of a statement of fact in the express representations and warranties set forth in Article 6 with intent to deceive Buyer and requires (i) a false representation of material fact, (ii) with knowledge that such representation is false, (iii) with an intention to induce Buyer to act or refrain from acting in reliance upon it, (iv) causing Buyer, in justifiable reliance upon such false representation and with ignorance of the falsity of such representation, to take or refrain from taking action and (v) causing Buyer to suffer damage by reason of such reliance.
17.3    Interpretation.
17.3.1    The headings and captions herein are inserted for convenient reference only and the same shall not limit nor construe the paragraphs or sections to which they apply nor otherwise affect the interpretation hereof.
17.3.2    The terms “hereby”, “hereof”, “hereto”, “herein”, “hereunder”, and any similar terms shall refer to this Contract, and the term “hereafter” shall mean after, and the term “heretofore” shall mean before, the Effective Date.
17.3.3    Words of the masculine, feminine or neuter gender shall mean and include the correlative words of other genders, and words importing the singular number shall mean and include the plural number and vice versa.
17.3.4    Words importing Persons shall include firms, associations, partnerships (including limited partnerships), trusts, corporations and other legal entities, including public bodies, as well as natural Persons.  No reference herein to Seller or Buyer shall, in and of itself, be deemed to refer to its shareholders or members as such.
17.3.5    The terms “include,” “including,” and similar terms shall be construed as if followed by the phrase “without being limited to”.
17.3.6    This Contract shall not be construed more strictly against one party than against the other merely by virtue of the fact that it may have been prepared primarily by counsel for one of the parties, it being recognized that both Buyer and Seller have contributed substantially and materially to the preparation of this Contract.
17.3.7    In the event that the date for the performance of any covenant or obligation under this Contract shall fall on a Saturday, Sunday or legal holiday in the State of Nevada, the date for performance thereof shall be extended to the next Business Day.
17.3.8    Any condition precedent imposed as a contingency under this Contract may be waived by the party entitled to satisfaction of the condition as a pre-requisite to that party’s performance.  Any condition precedent which remains unsatisfied upon Closing shall be deemed to be waived by the party entitled to satisfaction.
17.3.9    Unless otherwise expressly provided herein, any agreement, instrument, statute, rule or regulation defined or referred to herein or in any agreement or instrument defined or referred to herein means such agreement, instrument, statute, rule or regulation as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes, rules and regulations) by succession of comparable successor statutes, rules and regulations.
17.3.10    “knowledge” when used in the phrase “knowledge of Seller” or “Seller’s knowledge” and words of similar import means the actual knowledge of: Steve Ellis, Michael Massari and Pamela Taylor.
17.4    Governing Law; Venue; Waiver of Jury Trial.
17.4.1    This Contract and the transactions contemplated hereby, and all disputes between the parties hereto under or related to this Contract or the facts and circumstances leading to its execution, whether in contract, tort or otherwise, shall be governed by and construed in accordance with the laws of the State of Nevada, applicable to contracts executed in and to be performed entirely within the State of Nevada, without regard to the conflicts of laws principles thereof.
17.4.2    Each of the parties hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of any Nevada state court, or federal court of the United States of America, in each case, sitting in Clark County, Nevada, and any appellate court from any thereof, in any proceeding arising out of or relating to this Contract or the agreements delivered in connection herewith or the transactions contemplated hereby or thereby or for recognition or enforcement of any judgment relating thereto, and each of the parties hereto hereby irrevocably and unconditionally (a) agrees not to commence any such proceeding except in such courts, (b) agrees that any claim in respect of any such proceeding may be heard and determined in such Nevada state court or, to the extent permitted by law, in such federal court, in each case sitting in Clark County, Nevada, (c) waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any such proceeding in any such Clark County, Nevada State or federal court, (d) waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such Clark County, Nevada state or Federal court, and (e) to the extent such party is not otherwise subject to service of process in the State of Nevada, agrees that delivery of a notice to it in accordance with Article 13 shall constitute acceptance of legal process and agrees that service made by such means shall have the same legal force and effect as if served upon such party personally within such state.  Each of the parties hereto agrees that a final judgment in any such proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. 
17.4.3    Notwithstanding anything herein to the contrary, each of the parties hereto (a) submits to the exclusive jurisdiction of the state and federal courts sitting in the Borough of Manhattan within the City of New York, New York and the appellate courts thereof in any action or proceeding against a Debt Financing Related Party arising out of or relating to the Debt Financing or the Debt Financing Letters or its performance or subject matter, (b) agrees that all claims in respect of such proceeding may be heard and determined in any such court and (c) agrees not to bring any action or proceeding against a Debt Financing Related Party arising out of or relating to the Debt Financing or the Debt Financing Letters or its performance or subject matter in any other courts.  Each of the parties hereto waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety or other security that might be required of any other party with respect thereto.  Each of the parties hereto agrees that any claims brought against a Debt Financing Related Party arising out of relating to the Debt Financing or the Debt Financing Letters, its performance or its subject matter shall be governed by the laws of the State of New York without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of New York or any other jurisdiction) that would cause the application of the Laws of any jurisdiction other than the State of New York.
17.4.4    EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS CONTRACT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS CONTRACT AND ANY OF THE AGREEMENTS DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.  EACH PARTY HERETO CERTIFIES AND ACKNOWLEDGES THAT (a) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTIES HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTIES WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE EITHER OF SUCH WAIVERS, (b) IT UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVERS, (c) IT MAKES SUCH WAIVERS VOLUNTARILY, AND (d) IT HAS BEEN INDUCED TO ENTER INTO THIS CONTRACT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 17.4. THIS SECTION SHALL SURVIVE ANY TERMINATION OF THIS CONTRACT PRIOR TO THE CLOSING AND SHALL ALSO SURVIVE THE RECORDATION OF THE DEED AND SHALL NOT BE DEEMED MERGED INTO THE DEED UPON ITS RECORDATION.
17.5    Time. Time is of the essence in this Contract.
17.6    Cure Periods.  Neither Seller nor Buyer shall avail itself of any remedy granted to it hereunder based upon an alleged default of the other party hereunder unless and until written notice of the alleged default, in reasonable detail, has been delivered to the defaulting party by the non-defaulting party and the alleged default has not been cured on or before 5:00 p.m. (Pacific Time) on the fifth (5th) Business Day next following delivery of said notice of default, except for any different (longer or shorter) cure period as may be otherwise specifically set forth in this Contract.  Notwithstanding the foregoing, there shall be no cure period for a party’s failure to close on the Closing Date or make its required deposits (i.e., the Seller’s Deposits and the Buyer’s Deposits, respectively) to Escrow prior to the Closing Date as set forth in Sections 12.2 and 12.4.
17.7    Waiver of Known Defaults.  Notwithstanding anything to the contrary contained herein, and without limiting Section 17.3.10, in the event that either party hereto has actual knowledge of the default of the other party (a “Known Default”), but nonetheless elects to consummate the transaction contemplated hereby and proceeds to Closing, then the rights and remedies of the non-defaulting party shall be waived with respect to any such Known Default upon the Closing and the defaulting party shall have no liability with respect thereto except for any written agreement that may have been executed and delivered by Seller and Buyer as a condition to such party’s agreement to close over such Known Default.
17.8    No Recording.  Buyer shall not record this Contract or any memorandum or other notice thereof, except that Buyer may record a lis pendens in connection with its exercise of its remedies under Section 8.3(b).  If such recording shall occur, Seller shall have, in addition to all other remedies for breach by law, the right to terminate this Contract by written notice to Buyer and obtain the Deposit.
17.9    Attorneys’ Fees. In the event that it is necessary for either party to this Contract to resort to an attorney in order to enforce the provisions of this Contract, the prevailing party shall be entitled to an award of reasonable out-of-pocket attorney’s fees and costs.  The provisions of this Section 17.9 shall survive any termination of this Contract and the Closing.
17.10    Severability.  If any portion of this Contract as applied to either party or to any circumstances shall be adjudged by a court to be void or unenforceable, such portion shall be deemed severed from this Contract and shall in no way effect the validity or enforceability of the remaining portions of this Contract.
17.11    Counterparts.  This Contract and any document or instrument executed pursuant hereto may be executed in any number of counterparts, including facsimile and electronic counterparts (including in .pdf form), each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  
17.12    Waiver of Conditions.  No waiver of any of the provisions of this Contract shall constitute a waiver of any other provisions, whether or not similar, nor shall any waiver be a continuing waiver.  Except as expressly provided in this Contract, no waiver shall be binding unless executed in writing by the party making the waiver.  Either party may waive any provisions of this Contract intended for its benefit; provided, however, such waiver shall in no way excuse the other party from the performance of any of its other obligations under this Contract.
17.13    Conflicts.  (a) Each party acknowledges and agrees that Mayer Brown LLP, Brownstein Hyatt Farber Schreck, LLP, Greenberg Traurig, LLP and Akin Gump Strauss Hauer & Feld LLP (each, “Seller’s Counsel”) has acted as counsel to Seller in connection with the negotiation of this Contract and consummation of the transactions contemplated hereby.  Buyer hereby consents and agrees to, and agrees to cause its Affiliates to consent and agree to, Seller’s Counsel representing Seller or any of its Affiliates after Closing, including with respect to disputes in which the interests of Seller or any of its Affiliates may be directly adverse to Buyer and its Affiliates.  In connection with the foregoing, Buyer hereby irrevocably waives and agrees not to assert, and agrees to cause its Affiliates to irrevocably waive and not to assert, any conflict of interest arising from or in connection with Seller’s Counsel’s representation of Seller or any of its Affiliates prior to and after Closing.
(b)    Each party acknowledges and agrees that Milbank LLP, DLA Piper LLP, Holland & Hart LLP, Korshak, Kracoff, Kong & Sugano, LLP, Employees Benefits Law Group, PC and Alonso Law Limited (each, “Buyer’s Counsel”) has acted as counsel to Buyer in connection with the negotiation of this Contract and consummation of the transactions contemplated hereby.  Seller hereby consents and agrees to, and agrees to cause its Affiliates to consent and agree to, Buyer’s Counsel representing Buyer or any of its Affiliates after Closing, including with respect to disputes in which the interests of Buyer or any of its Affiliates may be directly adverse to Seller and its Affiliates.  In connection with the foregoing, Seller hereby irrevocably waives and agrees not to assert, and agrees to cause its Affiliates to irrevocably waive and not to assert, any conflict of interest arising from or in connection with Buyer’s Counsel’s representation of Buyer or any of its Affiliates prior to and after Closing.

17.14    Debt Financing Sources.  Except for the rights of Buyer and its Affiliates as set forth in the Debt Financing Letters or the definitive agreements with respect to the Debt Financing, no Debt Financing Related Parties shall have any liabilities (whether in contract or in tort, in law or in equity, or granted by statute) for any claims, causes of action, obligations or liabilities arising under, out of, in connection with or related in any manner to this Contract or based on, in respect of or by reason of this Contract its negotiation, execution, performance or breach.  The parties hereto agree that only Buyer and its Affiliates (and not Seller or any of its stockholders, members, partners or Affiliates) shall be permitted to bring or support any claim against any financing source under the Debt Financing Letters or otherwise for failing to satisfy any obligation to fund the Debt Financing pursuant to the terms of the Debt Financing Letters for the purpose of funding the transactions contemplated by this Contract.
[Signatures appear on the following page.]

IN WITNESS WHEREOF, this Contract has been executed and delivered by Seller and Buyer as of the Effective Date.

SELLER: 

RIO PROPERTIES, LLC, 
a Nevada limited liability company        

By:       /s/ Eric Hession            
Name:            Eric Hession            
Its:            Chief Financial Officer        

BUYER:  

3700 FLAMINGO ROAD VENTURE LLC,
a Delaware limited liability company

By:       /s/ Eric Birnbaum            
Name:            Eric Birnbaum            
Its:            Authorized Signatory        

ESCROW AGENT:

The undersigned Escrow Agent hereby accepts the foregoing Purchase and Sale Agreement and Joint Escrow Instructions and agrees to act as the Escrow Agent under this Contract in strict accordance with its terms.  The Opening of Escrow occurred on September 20, 2019.

FIRST AMERICAN TITLE INSURANCE
COMPANY

By:       /s/ Troy Lochhead            
Name:            Troy Lochhead            
Its:            Commercial Escrow Manager    

LIST OF EXHIBITS AND SCHEDULES TO CONTRACT

Exhibit A    Legal Description of the Property

Exhibit B    Definitions

Exhibit C    Form of Organizational Documents

Exhibit D    Form of Deed 

Exhibit E    Owned Slot Machines and Gaming Tables

Exhibit F    Guest Data Delivery Format

Exhibit G    Form of Seller Guaranty

Exhibit H    Property Marks

Exhibit I    Form of Bill of Sale and Assignment and Assumption Agreement (FF&E and 
Guest Data)

Exhibit J    Form of Trademark Assignment Agreement

Exhibit K    Form of Assignment of Interests Agreement

Exhibit L    Form of Property Lease

Exhibit M    Form of Seller’s FIRPTA Affidavit

Exhibit N    Development Parcel

Exhibit O    Purchase Price Allocation Schedule

Exhibit P    Culinary CBA

Exhibit Q    Form of Owner & Operator Letter

Exhibit R    Form of Teamsters and Engineers Union Notice

Exhibit S    Seller Financing Term Sheet

Schedule 6.2.2    No Conflicts
Schedule 6.2.4    Personal Information and Privacy
Schedule 6.4    Trademark Matters
Schedule 6.6.1    Existing Leases
Schedule 6.10.3    Collective Bargaining Agreements

EXHIBIT B

DEFINITIONS

“Additional Deposit” means an earnest money deposit (in addition to the Initial Deposit) of Five Million and No/100 Dollars ($5,000,000.00).

“Affiliate” means, with respect to any Person, any Person controlled by, controlling or under common control such first Person.

“Amenity Services” means any food, beverage, hotel, spa, shopping, entertainment, and other services provided at a casino.
 
“Ancillary Agreements” means the Deed, the Organizational Documents, the Assignment of Interests Agreement, the Property Lease and the other documents to be executed and delivered by Seller, Property Owner and/or Buyer pursuant to this Contract.
“Approved New Equity Financing Source” shall have the meaning set forth in Section 5.7.2.
“Burdensome Condition” means any undertakings, terms, conditions, liabilities, obligations, commitments or sanctions of any kind that, in the aggregate, would have or would reasonably be expected to have a material adverse effect on the business, financial condition, assets or results of operations of Buyer and its subsidiaries, taken as a whole.

“Business Day” means a day that is not a Saturday, Sunday or legal holiday in the State of Nevada. 

“Buyer Bad Act Suitability Problem” means a Suitability Problem caused by (a) any Equity Financing Source that is not an Identified Equity Financing Source or an Approved New Equity Financing Source; or (b) with respect to Buyer, the Identified Equity Financing Sources or the Approved New Equity Financing Sources, any fact or circumstance first arising after the submission of such Person’s Business Information Form to Seller (or any other information provided to Seller by such Person) prior to such Person’s approval by the Compliance Committee or any fact or circumstance resulting from any material misrepresentation or material omission on such Person’s Business Information Form as submitted to Seller by such Person (or any other material misrepresentation or material omission in any other information provided by such Person to Seller) prior to such Person’s approval by the Compliance Committee. 

“Buyer Material Adverse Effect” means changes, events, circumstances or effects that have had or would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of Buyer and its Affiliates or the ability of Buyer to timely consummate the transactions contemplated by this Contract. 

“Casualty” means any damage to or destruction of all or any portion of the Property due to fire or other casualty.

“Change of Control” means the occurrence of any one or more of the following: (a) the accumulation, whether directly, indirectly, beneficially or of record, by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended) of 20% or more of the shares of the outstanding equity securities of the applicable Person, whether by merger, consolidation, sale or other transfer of equity or (b) a sale of all or substantially all of the assets of the applicable Person.

“Closing” means the transfer of title to the Property pursuant to this Contract and the consummation of all the other transactions specified in this Contract to occur on the Closing Date.

“Closing Date” means November 4, 2019 or, if applicable, the Outside Date, or such earlier date as may be agreed upon in writing by Seller and Buyer.

“Code” means the Internal Revenue Code of 1986, as amended.

“Collective Bargaining Agreements” means:  (i) the agreement between the International Union of Operating Engineers Local 501, AFL-CIO and Rio CERP Manager, LLC on behalf of Rio Properties, Inc. d/b/a Rio All-Suite Hotel and Casino dated April 1, 2018 through March 31, 2021, (ii) the agreement between the General Teamsters, Airline, Aerospace and Allied Employees, Warehousemen, Drivers, Construction, Rock and Sand Teamsters Local Union No. 986 - Front Desk Employees and Rio CERP Manager, LLC on behalf of Rio Properties, Inc., d/b/a Rio All-Suite Hotel and Casino dated April 1, 2016 through March 31, 2019; (iii) the agreement between the General Teamsters, Airline, Aerospace and Allied Employees, Warehousemen, Drivers, Construction, Rock and Sand Teamsters Local Union No. 986 – Back End and Rio CERP Manager, LLC on behalf of Rio Properties, Inc. d/b/a/ Rio All-Suite Hotel and Casino dated April 1, 2016 through March 31, 2019; and (iv) the agreement between the Local Joint Executive Board of Las Vegas, for and on behalf of Culinary Workers Union, Local No. 226 and Bartenders Union, Local No. 165 and Rio CERP Manager, LLC on behalf of Rio Properties, LLC, d/b/a Rio All Suite Hotel and Casino dated August 1, 2018 until July 31, 2023.  

“Confidentiality Agreement” means that certain Confidentiality Agreement, dated August 6, 2018, by and between Caesars Entertainment Corporation and Imperial Companies LLC.

“Contemplated Redevelopment” means the proposed redevelopment, expansion and/or improvement to the Property following the termination of the Property Lease that is contemplated by Buyer as disclosed by Buyer to Seller prior to the Effective Date.

“Culinary CBA” means the collective bargaining agreement entered into between Seller and Local Joint Executive Board of Las Vegas attached hereto as Exhibit P.

“Debt Financing Related Parties” means the Debt Financing Sources, any alternative source of debt financing and each of their respective Affiliates, and of their respective officers, directors, employees, members, managers, limited partners, lenders, investors, managed accounts, partners, controlling Persons, advisors, attorneys, agents and representatives, together each of their respective heirs, executors, successors and assigns.

“Deposit” means, collectively, the Initial Deposit and the Additional Deposit.

“Development Parcel” means a portion of the Land depicted on Exhibit N.

“Employee” means any individual who is employed on a full-time or part-time basis at, or with respect to, the Property.
“Employee Benefit Plan” means each “employee benefit plan,” as defined in Section 3(3) of ERISA, each employment agreement, severance agreement or plan, and each other plan, program, fund, or agreement, whether written or unwritten, providing for compensation, bonuses, profit-sharing, equity compensation or other forms of incentive or deferred compensation, insurance (including any self-insured arrangements), health or medical benefits, or post-employment or retirement benefits (including compensation, pension, health, medical or life insurance benefits) which is maintained, administered, or contributed to by Seller or any of its ERISA Affiliates, and covers any current or former Employee or with respect to which Seller or any of its ERISA Affiliates has, or once had, any liability with respect to any current or former Employee (including liability pursuant to a reimbursement, indemnification or related obligation pursuant to any contractual arrangement).

“Environmental Law” means the Clean Air Act, 42 U.S.C. §7401 et seq.; the Federal Water Pollution Control Act of 1977, 33 U.S.C. §1251 et seq., as amended by the Water Quality Act of 1987; FIFRA; the National Environmental Policy Act of 1969, 42 U.S.C. §4321 et seq.; the Noise Control Act of 1972, 42 U.S.C. §4901 et seq.; the Occupational Safety and Health Act of 1970, 29 U.S.C. §651 et seq. U.S.C. §300f et seq.; CERCLA; the Emergency Planning and Community Right-To-Know Act of  1986, 42 U.S.C. §11001 et seq.; the Radon Gas and Indoor Air Quality Research Act of 1986, 42 U.S.C.§7401; RCRA; TSCA; AEA; and NWPA, all as may be amended, with implementing regulations and guidelines. Environmental Laws shall also include all federal, state, regional, county, municipal, and other local laws, regulations, and ordinances with respect to protection of the environment or that are equivalent or similar to the federal laws above or regulate (now or in the future) Hazardous Materials.

“Equity Financing Source” means a Person who provides equity or preferred equity financing (the “Equity Financing”) to Buyer for purposes of funding a portion of the equity financing required to consummate the transactions contemplated by this Contract.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the regulations issued thereunder.

“ERISA Affiliate” means any trade or business (whether or not incorporated) which is or has ever been treated as a single employer with a Person under Section 414(b), (c), (m), or (o) of the Code and any entity, whether or not incorporated, that is under common control with a Person within the meaning of Section 4001(a)(14) of ERISA.

“Escrow Agent” means First American Title Insurance Company, Attention: Troy Lochhead, 2500 North Buffalo Suite 150, Las Vegas, Nevada 89128, Direct Line: (702) 251-5280, Facsimile: (702) 966-5848 and Email: tlochhead@firstam.com, or such other escrow agent as may be approved by Seller and Buyer. 

“Existing Loan” means that certain loan evidenced or secured by (a) that certain Deed of Trust, Security Agreement, Assignment of Rents and Leases and Fixture Filing, made by Seller, as grantor, to Fidelity National Title Insurance Company, as trustee, for the benefit of Credit Suisse AG, Cayman Islands Branch, as collateral agent, as beneficiary, dated as of May 21, 2018 and recorded on such date in the Office of the Clark County Recorder as Inst # 20180521-0002784 (the “Deed of Trust”), and (b) the other Loan Documents (as defined in the Deed of Trust)

 
“Existing Survey” means that certain ALTA/NSPS Land Title Survey for the Property, certified by the surveyor on May 1, 2018, prepared by Blew & Associates, Inc., B&C Project No. [***].

“FCC” means the Federal Communications Commission.

“FCC Licenses” means the FCC-issued licenses to operate a base station or two way security radios at the Property held by Seller or any of its Affiliates.

“FF&E” means furniture, fixtures and equipment used in the ordinary course of operating the Property; provided, however, that FF&E shall not include any WSOP Assets, WSOP Equipment or WSOP OS&E. 

“Gaming Authorities” means any Governmental Entity with regulatory control or jurisdiction over the conduct of lawful gaming or gambling within the State of Nevada and, with respect to a Suitability Problem only, outside of the State of Nevada.

“Gaming Equipment” means any and all gaming devices (as defined in the Gaming Laws), gaming device parts inventory and other related gaming equipment and supplies used in connection with the operation of a casino, gaming tables, cards, dice, chips, tokens, player tracking systems, cashless wagering systems (as defined in the Gaming Laws), electronic betting systems, mobile gaming systems (as defined in the Gaming Laws), interactive gaming systems (as defined in the Gaming Laws), inter-casino linked systems (as defined in the Gaming Laws), on-line slot metering systems (as defined in the Gaming Laws), and associated equipment (as defined in the Gaming Laws), together with all improvements and/or additions thereto, in each case, which are located at the Property owned or leased by Seller or any of its Affiliates and used or usable exclusively in the gaming operations conducted at the Property; provided, however, that Gaming Equipment shall not include any WSOP Equipment.

“Gaming Laws” means any federal, state, local or foreign statute, ordinance, rule, regulation, permit, consent, registration, finding of suitability, approval, license, judgment, order, decree, injunction or other authorization, including any condition or limitation placed thereon, governing or relating to the current or contemplated casino and gaming activities and operations and manufacturing and distributing operations in the State of Nevada, including the Nevada Gaming Control Act, as codified in NRS Chapter 463, the regulations promulgated thereunder, and the Clark County Code.

“Gaming Services” means slot, video poker, table gaming, and any other gambling lawfully permitted at a casino.

“Governmental Entity” means any domestic, federal, territorial, state or local governmental authority, quasi-governmental authority, court, commission, board, bureau, body, agency or instrumentality, or any regulatory, legislative, executive, administrative or other department, bureau, commission, arbitral tribunal, arbitrator or other body administering alternative dispute resolution, agency, any political or other subdivision, department, instrumentality or branch of any of the foregoing, or other body exercising similar powers or authority.
 
“Guest Data” means all information and data falling within the fields set forth in Exhibit F whether stored digitally, electronically, magnetically or in any other format, in the possession, custody, or control of Seller or its Affiliates relating to Persons who were customers of the Property at any time between the Lookback Date and the Effective Date, but only to the extent permitted under applicable law, including the receipt of any required consent from each such Person to the transfer of such information or data to the extent required by applicable law. Notwithstanding anything in this Contract to the contrary, “Guest Data” shall not include (a) any information relating to the Guest Services used by the applicable Person at, or other information relating to the applicable Person generated primarily as a result of such Person’s visitation of, any of the facilities owned or operated by Seller or any of its Affiliates other than the Property, (b) any information exclusively originating from participation by a Person in any World Series of Poker event, whether originating from the Property or otherwise, (c) any information generated or extrapolated as part of or derived in connection with the Caesars Rewards Program (formerly known as Total Rewards Program) or any other customer loyalty program of Seller and its Affiliates (it being understood that this exception shall not apply to information merely captured by the Caesars Rewards Program or such other customer loyalty program that would otherwise qualify as Guest Data hereunder), (d) any information originating at the Property to the extent such information relates to activities of such customers at such other facilities owned or operated by Seller or any of its Affiliates that are not located at the Property, (e) any information concerning any histories or use of such other facilities which are owned or operated by Seller or any of its Affiliates that are not located at the Property, (f) any proprietary information, techniques or methods of Seller and its Affiliates related to (i) operating and marketing, gaming, hotel and related businesses (including the Caesars Rewards Program and the World Series of Poker events), (ii) designing, selecting, maintaining, operating, marketing, developing and customizing games used in gaming, hotel and related businesses, (iii) methods of training employees in the gaming, hotel and related businesses, and (iv) proprietary business plans, projections, marketing, advertising and promotion plans, strategies and systems, and (g) any proprietary information, techniques or methods of Seller and its Affiliates used in connection with the Caesars Rewards Program or any other rewards system which is used at facilities owned or operated by Seller or any of its Affiliates.

“Guest Services” means Gaming Services and Amenity Services.

“Hazardous Materials” means any hazardous or toxic substance, material, waste, gas or particulate matter, pollutant, contaminant, explosive or radioactive substance, petroleum or any fraction thereof, petroleum distillates, petroleum products, natural gas, asbestos or asbestos containing materials, polychlorinated biphenyls, mold or radon gas, giving those terms the broadest meaning as accorded by any Environmental Law.  Without limiting the generality of the foregoing, the definition of those terms shall include substances, materials and wastes which are regulated under the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. § 9601 et seq., as amended (“CERCLA”); oil and petroleum products and by-products and natural gas, natural gas liquids, liquefied natural gas, and synthetic gas usable for fuel, urea formaldehyde foam insulation, and chlorofluorocarbons; pesticides regulated under the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. §136 et seq., as amended (“FIFRA”); asbestos, polychlorinated biphenyl, and other substances regulated under the Toxic Substances Control Act, 15 U.S.C. §2601 et seq., as amended (“TSCA”); chemicals subject to the Occupational Safety and Health Standards, Hazard Communication, 29 C.F.R. §1910.1200, as amended; source material, special nuclear by-product materials, and any other radioactive materials or radioactive wastes, however produced, regulated under the Atomic Energy Act of 1954, 42 U.S.C. §2011 et seq., as amended (“AEA”); or the Nuclear Waste Policy Act of 1982, 42 U.S.C. §10101 et seq., as amended (“NWPA”); industrial process and pollution control wastes whether or not hazardous within the meaning of the Resource Conservation and Recovery Act of 1976, 42 U.S.C. §6901 et seq., as amended (“RCRA”); and any other hazardous or toxic substance, material, waste pollutant or contaminant that is regulated or becomes regulated under any other Environmental Laws.

“Identified Equity Financing Source” means Aimbridge Hospitality, The Baupost Group, L.L.C. and Imperial Companies, LLC.

“Immediately Available Funds” means funds deposited by federal funds wire transfer.

“Independent Person” means, with respect to the members of Seller’s Compliance Committee, that such member (a) is not an employee, officer or director of Seller or any Affiliate of Seller, (b) is not the spouse or lineal descendant (naturally or by adoption) of an employee, officer or director of Seller or any Affiliate of Seller and (c) is not an individual that, or an employee, officer or director of an entity that, regularly supplies a material amount of goods or services to Seller or any Affiliate of Seller.

“Junior Mezzanine Loan Term Sheet” means a term sheet or a commitment letter from one or more lenders to provide mezzanine financing to a direct or indirect owner of Buyer to fund a portion of the Purchase Price at Closing. 

“Land Records” means the records of the Office of the Recorder of Clark County, Nevada.

“Legal Requirements” means with respect to the Property, all federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Entities affecting the Property or any part thereof (including, without limitation, all Anti-Terrorism Laws, Environmental Laws, Gaming Laws and the WARN Act), or affecting the construction, use, alteration or operation thereof, or any part thereof, whether now or hereafter enacted and in force, and all permits, licenses and authorizations and regulations relating thereto (including, without limitation, all Operating Permits (as defined in the Property Lease)), and all covenants, agreements, restrictions and encumbrances contained in any instruments promulgated or enacted by a Governmental Entity, either of record or known to Seller or Buyer, at any time in force affecting the Property or any part thereof.

“Legionnaire’s Liabilities” means any liabilities, losses, damages, fines, penalties and reasonable and documented out-of-pocket costs and expenses resulting from any personal injury, sickness, disease or death, property damage, cost recovery, damage to the environment, violation of pollution standards, nuisance or remedial actions, in each case solely to the extent related to the Legionnaire’s Outbreak.

“Legionnaire’s Outbreak” means that certain 2017 outbreak of bacteria at the Property resulting in Legionnaire’s disease and/or Pontiac Fever.

“Lookback Date” means September 20, 2017.

“Multiemployer Pension Plan” means any Employee Benefit Plan that is a “multiemployer plan" within the meaning of Section 3(37) of ERISA and subject to Title VI of ERISA.

“Non-Material Lease” means a lease, license, sublease or other agreement that (a) permits an Existing Tenant to occupy not more than 1,000 rentable square feet of space at the Property, (b) does not contain an expansion right permitting such Existing Tenant to occupy more than 1,000 rentable square feet of space at the Property and (c) does not contain any purchase option, right of first refusal or similar preferential purchase right.  

“NRS” means the Nevada Revised Statutes, as amended from time to time.

“OS&E” means Operating Supplies (as defined in the current edition of the Uniform System of Accounts for the Lodging Industry published by the American Hotel & Lodging Educational Institute) and operating equipment required for the operation of the Property (other than FF&E).

 “Owned Gaming Equipment” means the Gaming Equipment owned by Seller as of the Effective Date.

“Owned Slot Machines and Gaming Tables” means the slot machines and gaming tables that constitute Owned Gaming Equipment that are listed on Exhibit E hereto, as such Exhibit is updated by Seller from time to time as required by this Contract and the Property Lease.

“Permitted Exceptions” means: (a) applicable zoning, building and land use laws, terms and conditions of licenses, permits and other approvals for the Property, and the other laws of any Governmental Entity having jurisdiction over the Property; (b) such state of facts as would be disclosed by a physical inspection of the Property or an update to the Survey of the Property other than any Required Removal Exception; (c) the lien of real estate taxes, assessments and other governmental charges or fees not yet due and payable or which are currently being contested in good faith by appropriate proceedings; (d) the rights of Existing Tenants under any Leases related to the Property as tenants only (with no options to purchase and no other preferential rights to purchase, including no rights of first refusal) and hotel guests whose occupancy may be terminated on short notice; (e) mechanics’ and materialman’s liens that arise in the ordinary course other than any Required Removal Exception; (f) all matters disclosed by the Title Commitment as the same exists on the Effective Date (except for the deed of trust disclosed as Exception 78 thereon which Seller shall cause to be released prior to or concurrently with the Closing), the Survey and/or the Existing Survey; (g) any lien or encumbrance created, suffered or consented to in writing by Buyer; (h) any matter Title Insurer insures over, or for which it otherwise provides affirmative title coverage, in the Title Policy with no additional cost to Buyer; (i) any restrictions on transfer arising under applicable securities laws or Gaming Laws; (j) easements, leases, reservations or other rights of others in, or minor defects and irregularities in title to, the Property; provided, that such easements, leases, reservations, rights, defects or irregularities do not materially impair the current use of the Property and do not render title to the Property un-marketable; (k) any liens on any assets of Seller imposed pursuant to the Existing Loan, which Seller shall cause to be released prior to or concurrently with the Closing; and (l) any other matter specifically identified in this Contract as a Permitted Exception.  For the avoidance of doubt, none of the matters disclosed on the Title Commitment (as the same exists on the Effective Date), the Survey or the Existing Survey constitute, individually or in the aggregate, a Required Removal Exception.

“Person” means any natural person or legal entity, including trustees, representatives, administrators, heirs, executors, partnerships, corporations, limited liability companies, trusts, unincorporated organizations and governmental agencies, departments and branches.

“Property Lease Expiration Date” means the date on which the Property Lease is scheduled to expire, as such date may be extended, as set forth in the Property Lease.

“Property Lease Obligations” means the obligations of Tenant under the Property Lease.

“Purchase Price Allocation Schedule” means the items set forth in Exhibit O attached hereto.

“Pursuit Costs” means all reasonable and documented out-of-pocket costs and expenses incurred and/or paid by Buyer and/or its Affiliates in connection with the pursuit, due diligence and negotiation of this Contract and the Property Lease and the potential Financing of the acquisition of the Purchased Assets, contemplated by this Contract, including any reasonable and documented legal costs and expenses, zoning, appraisal and other third party reports and application fees, legal fee expense deposits, commitment fees and similar amounts paid to prospective Debt Financing Sources.

“Seller Closing Documents” means the documents to be executed and/or delivered by Seller at Closing pursuant to Section 12.2 of this Contract.

“Seller Material Adverse Effect” means changes, events, circumstances or effects that have had or would reasonably be expected to have, individually or in the aggregate, a material adverse effect on the business, financial condition or results of operations of Seller or the ability of Seller to consummate the transactions contemplated by this Contract; provided, that the following, individually and in the aggregate, shall be excluded from the definition of Seller Material Adverse Effect and from any determination as to whether a Seller Material Adverse Effect has occurred:  (i) any change, event, condition or effects arising out of or resulting from changes in or affecting the (A) hotels or casinos in Las Vegas, Nevada or Clark County, Nevada, (B) travel, hospitality or gaming industries generally, or in the jurisdiction where Seller operates, (C) the financial, banking, currency or capital markets in general, including changes in interest or exchange rates, or (D) the United States or global economy generally; (ii) political conditions generally of the United States; (iii) any natural disasters, catastrophe events or casualty events, hostility, sabotage, military action or civil disturbance, acts of war (whether or not declared), armed conflict or similar calamity or terrorism or any escalation or worsening of any of the same, in each case in the U.S. or internationally; (iv) any change in United States generally accepted accounting principles or applicable law (including adoption of new regulations with respect to existing laws or changes in interpretation of existing laws, including the impact and effects thereof from time to time) or the enforcement, interpretation or implementation thereof; (v) any change, event or effect resulting from the negotiation, execution, delivery or performance of, or public announcement of the transactions contemplated by, this Contract, including the loss of any employees, clients or client assets following the announcement of this Contract or the transactions contemplated hereby or any action, proceeding, claim, protest or dispute arising therefrom or relating thereto; (vi) any occurrence or condition arising out of the identity of or facts relating to Buyer (including its Affiliates); (vii) actions permitted to be taken or not taken pursuant to this Contract or taken with Buyer’s consent or not taken because Buyer did not give its consent; (viii) the effect of any action taken by Buyer or its Affiliates with respect to the transactions contemplated by this Contract (including any communication or disclosure regarding Buyer’s plans or intentions with respect to the operation of the Property as well as any other action by Buyer); (ix) any labor strike, work stoppage, picketing, lockout or any other labor dispute, any labor negotiations, the entry into any collective bargaining agreement which results from such labor negotiations or the termination of labor negotiations; and (x) any disruption of or interruption in the conduct of Seller’s business or any of its tenants or counterparties conducted at Property resulting directly or indirectly from any demolition or construction activity on any other property.

“Seller’s Financing Liens” means (a) all liens created by the Existing Loan and (b) any financing liens caused, created, or consented to in writing by Seller or any of its Affiliates.

“Tenant” means Seller or any Affiliate of Seller designated by Seller to be the tenant under the Property Lease.

“Title Insurer” means First American National Title Insurance Company, or such other title insurance underwriter as may be approved by Seller. 

“Unions” means the International Union of Operating Engineers Local 501, AFL-CIO, the General Teamsters, Airline, Aerospace and Allied Employees, Warehousemen, Drivers, Construction, Rock and Sand Teamsters Local Union No. 986 and the Local Joint Executive Board of Las Vegas, for and on behalf of Culinary Workers Union, Local No. 226 and Bartenders Union, Local No. 165.

“UST” means the 5,000 gallon underground storage tank formerly located on the Property which was removed from the Property on February 13, 1998.

“UST Liabilities” means any liabilities, losses, damages, fines, penalties and reasonable and documented out-of-pocket costs and expenses resulting from any personal injury, sickness, disease or death, property damage, cost recovery, damage to the environment, violation of pollution standards, nuisance or remedial actions, in each case solely to the extent related to the UST.

“WARN Act” means the Worker Adjustment and Retraining Notification Act, as amended.

“WSOP Assets” means the WSOP Equipment, the WSOP OS&E, and the personal property primarily used in connection with the World Series of Poker (including the name “World Series of Poker” and any chips or tokens with any trademark related to the World Series of Poker brand included thereon). 

“WSOP Equipment” means the equipment primarily used in connection with the World Series of Poker.

“WSOP OS&E” means Operating Supplies (as defined in the current edition of the Uniform System of Accounts for the Lodging Industry published by the American Hotel & Lodging Educational Institute) primarily used in connection with the World Series of Poker and WSOP Equipment.

The following are defined elsewhere in this Contract, as indicated below:

	
		
	Term

	Reference

	Assignment of Interests Agreement
	Section 12.2.5

	Buyer
	Introductory Paragraph

	Buyer’s Closing Conditions
	Section 8.1

	Buyer’s Counsel
	Section 17.13

	Buyer’s Deposits
	Section 12.4

	Buyer’s Environmental Report
	Section 6.5.4

	Buyer’s Expenses
	Section 4.2

	Buyer’s Gaming Approval
	Section 5.7.1

	Claim Notice
	Section 8.8.4(a)

	Closing Expenses
	Section 4.2

	Closing Statement
	Section 4.3

	Compliance Committee
	Section 5.7.2

	Contract
	Introductory Paragraph

	Debt Financing
	Section 7.3.1

	Debt Financing Letters
	Section 7.3.1

	Debt Financing Sources
	Section 7.3.1

	Declaration of Value
	Section 12.2.2

	Deductible
	Section 17.2.1

	Deed
	Section 2.1

	Effective Date
	Introductory Paragraph

	Election Notice
	Section 8.1.6

	Enforcement Limitations
	Section 6.2.1

	Environmental Permits
	Section 6.5.1

	Escrow
	Section 9.2

	Existing Tenant
	Section 6.6.1

	Extended Target Closing Date
	Section 8.12.1

	Financing
	Section 7.3.1

	Financing Commitment
	Section 7.3.1

	Fraud
	Section 17.2.2

	Guarantor
	Section 5.8

	HSR Act
	Section 6.2.3

	HSR Clearance
	Section 5.6.1

	Initial Deposit
	Section 1.3.1

	Initial Target Closing Date
	Section 8.12

	Known Default
	Section 17.7

	Lease
	Section 6.6.1

	Lender’s Title Policy
	Section 4.2

	Lien or Judgment
	Section 3.2

	Membership Interests
	Section 2.1

	New Property Owner
	Section 2.1

	Organizational Documents
	Section 2.1

	Objection
	Section 3.2

	Objection Notice
	Section 8.1.6

	Opening of Escrow
	Section 9.2

	Outside Date
	Section 8.12

	Paid Deposit
	Section 1.3.1

	Permits
	Section 6.7

	Preliminary Closing Statement
	Section 4.3

	Property
	Recital A

	Property Lease
	Section 12.2.6

	Property Marks
	Section 6.4

	Purchased Assets
	Section 1.1

	Purchase Price
	Section 1.2

	Qualified LJ
	Section 8.1.6

	Remedial Action
	Section 5.6.2

	Required Removal Exception
	Section 3.2

	Securities Act
	Section 7.7

	Seller
	Introductory Paragraph

	Seller Guaranty
	Section 5.8

	Seller Privacy Policy
	Section 5.5.2

	Seller’s Broker
	Article 10

	Seller’s Closing Conditions
	Section 8.4

	Seller’s Counsel
	Section 17.13

	Seller’s Deposits
	Section 12.2

	Seller’s Expenses
	Section 4.2

	Solvent
	Section 7.5

	Suitability Problem
	Section 5.7.2

	Suitability Problem Notice
	Section 5.7.2

	Survey
	Section 3.1

	Surveyor
	Section 3.1

	Title Commitment
	Section 3.2

	Title Policy
	Section 3.3

	Transfer
	Section 15.2

	Update
	Section 3.2

	Use Restrictions
	Section 5.5.2

	WARN Act Notification
	Section 6.2.3

	 
	 

i2019 Q3 CEC Ex 10.2 Ranger Form Lease w/o exhibits

Exhibit 10.2

Certain information and exhibits have been excluded from this form agreement because such information (i) is not material and (ii) would be competitively harmful if publicly disclosed.

FORM OF LEASE AGREEMENT
between
IC 3700 FLAMINGO ROAD LLC,
as Landlord,
and
RIO PROPERTIES, LLC,
as Tenant
Dated:  as of [__], 20[19]

TABLE OF CONTENTS
Page
ARTICLE A CERTAIN LEASE PROVISIONS    1
ARTICLE B CERTAIN DEFINITIONS; PRINCIPLES OF CONSTRUCTION    2
ARTICLE 1 PREMISES AND TERM    13
1.1    Lease of Premises    13
1.2    Extension Option    14
ARTICLE 2 RENT    15
2.1    Base Rent    15
2.2    Additional Rent; Triple Net Lease    15
ARTICLE 3 UTILITIES AND TAXES    15
3.1    Taxes    15
3.2    Utilities    17
3.3    Impound Accounts    17
ARTICLE 4 NO LANDLORD WORK    17
ARTICLE 5 USE AND OPERATION OF PREMISES; ALTERATIONS AND REPAIRS    18
5.1    Compliance with all Legal Requirements    18
5.2    Maintenance    18
5.3    Alterations    18
5.4    Cost of Work    18
5.5    Reimbursement for Capital Costs.    18
5.6    Property of Landlord; Gaming Equipment    20
5.7    Legal Requirements of Work    20
5.8    Liens    20
5.10    Continuous Use; Wind Down..    21
5.11    Quarterly Reporting    22
5.12    Post-Term Management Services    22
5.13    Transition Services Upon Expiration of the Lease..    23
ARTICLE 6 INSURANCE    23
6.1    Tenant’s Insurance    23
6.2    Landlord’s Insurance    23
6.3    Waivers of Subrogation Rights    23
ARTICLE 7 DAMAGE OR DESTRUCTION    23
7.1    Total or Substantial Destruction    23
7.2    Partial Destruction; Restoration    24
7.3    Repair    24
7.4    Insurance Proceeds    25
7.5    Express Agreement    25
ARTICLE 8 CONDEMNATION    25
8.1    Complete and Partial Taking    25
8.2    Proceeds    25
8.3    Landlord’s Restoration Obligation    26
ARTICLE 9 ASSIGNMENT AND SUBLETTING    26
9.1    Consent Required    26
9.2    Request for Transfer    27
ARTICLE 10 SUBORDINATION AND LANDLORD FINANCING    27
10.1    Subordination of Lease    27
10.2    Landlord Financing    28
10.3    Attornment    28
10.4    Tenant Cooperation    28
ARTICLE 11 INDEMNIFICATION OBLIGATIONS    28
11.1    Indemnification.    29
ARTICLE 12 DEFAULT; REMEDIES    30
12.1    Tenant’s Event of Default    30
12.2    Landlord Remedies    31
12.3    No Waiver    33
ARTICLE 13 ESTOPPEL CERTIFICATE    33
ARTICLE 14 QUIET ENJOYMENT    33
ARTICLE 15 SURRENDER    34
15.1    Cooperation.    34
15.2    Notice as to Delivery of Premises..    34
15.3    Tenant’s Surrender of the Premises..    34
15.4    Closed Business.    34
15.5    Failure to Consummate Operating Business Transaction..    36
15.6    Holdover..    37
15.7    Licensing Matters..    37
ARTICLE 16 ACCESS    38
16.1    Landlord’s Access    38
16.2    Access for Repairs and Alterations    38
ARTICLE 17 ENVIRONMENTAL MATTERS    39
17.1    Use of Hazardous Materials    39
17.2    Compliance with Environmental Laws    39
17.3    Environmental Liens    39
17.4    Notice to Landlord    39
17.5    Legal Proceedings    40
17.6    Consent to Remedial Action    40
17.7    Remedial Work    40
17.8    Landlord’s Right to Inspect    41
17.9    Landlord’s Costs    41
ARTICLE 18 OPERATIONS    41
18.1    Independent Contractors    41
18.2    Tenant Employees.    42
18.3    Operating Permits    43
18.4    Trademark License    43
18.5    Guest Data.    44
ARTICLE 19 MISCELLANEOUS PROVISIONS    45
19.1    Signs    45
19.2    Headings    45
19.3    Entire Agreement    45
19.4    Successors and Assigns    45
19.5    Notices    46
19.6    Severability    47
19.7    No Brokers    47
19.8    Rules of Construction    47
19.9    Time is of the Essence    47
19.10    Force Majeure    47
19.11    Governing Law/Consent to Jurisdiction/Venue    47
19.12    Waiver of Jury Trial    47
19.13    No Recording    47
19.14    Tenant Remedies    47
19.15    Third Persons    48
19.16    Waiver    48
19.17    Counterparts and Admissibility of Electronic Copies    48
19.18    Attorneys’ Fees    48
19.19    Anti-Corruption Representations    48
19.20    Anti-Terrorism Law    48
19.21    Confidential Information    49
19.22    Regulatory Provisions    49
SCHEDULE A — LEGAL DESCRIPTION OF LAND
SCHEDULE B — TENANT INSURANCE REQUIREMENTS
SCHEDULE C — LANDLORD INSURANCE REQUIREMENTS
SCHEDULE D — DEPICTION OF DEVELOPMENT PARCEL  
SCHEDULE E — FORM OF SNDA
SCHEDULE F — FORM OF ASSIGNMENT AGREEMENT
SCHEDULE G — DEVELOPMENT PARCEL TAX METHODOLOGY
SCHEDULE H — OPERATING BUSINESS PROVISIONS
SCHEDULE I — FORM OF TRANSITION SERVICES AGREEMENT

LEASE AGREEMENT
This  LEASE AGREEMENT is made as of [__], 20[19] (as the same may be amended, modified and/or restated from time to time in accordance with the terms and conditions hereof, this “Lease”), between IC 3700 FLAMINGO ROAD LLC, a Delaware limited liability company (subject to Section 19.4, “Landlord”), and RIO PROPERTIES, LLC, a Nevada limited liability company (subject to Section 19.4, “Tenant”). 
ARTICLE A 
CERTAIN LEASE PROVISIONS
	
		
	1.   Definitions:
	 

	   (a)   “Base Term”:
	A term which begins on the Commencement Date and ends on the Base Term Expiration Date.

	(b)   “Base Term 
            Expiration Date”:
	The two year anniversary of the Commencement Date or such earlier date on which this Lease shall terminate or be terminated pursuant to the terms hereof.

	   (c)   “Commencement Date”:
	[__], 20[19] (the date Landlord acquired record fee title to the Premises).

	   (d)   “Expiration Date”:
	The Base Term Expiration Date or, if the Extension Option is exercised in accordance with Section 1.2, the Extension Term Expiration Date or, if the option to extend is exercised in accordance with Section 15.5, the date that is six (6) months after the Base Term Expiration Date or the Extension Term Expiration Date, as applicable, or, in each case, such earlier date on which this Lease shall terminate or be terminated pursuant to the terms hereof.

	   (e)   “Term”:
	A term which begins on the Commencement Date and ends on the Expiration Date.

	2.   “Base Rent” for the Premises:
	$3,750,000 per month, payable in advance in equal consecutive monthly installments on the first (1st) Business Day of each month, except that Rent for any period which is less than one (1) month shall be a prorated portion of the monthly installment herein based upon the actual days in the month.  Base Rent shall be allocated 99% to the portion of the Premises comprised of real property and 1% to the portion of the Premises comprised of personal property.

	3.   Use of Premises:
	The operation of the Premises as a hotel casino resort, and uses related or incident thereto, subject to the provisions of Section 5.9.

	4.   Address for Notice:
	As set forth in Section 19.5. 

ARTICLE B 
CERTAIN DEFINITIONS; PRINCIPLES OF CONSTRUCTION 
As used in this Lease, the following terms have the following meanings or are defined in the section of this Lease so indicated:
“Additional Rent” is defined in Section 2.2.
“Affiliate” has the meaning ascribed to such term in the Purchase Agreement.
“Alterations” is defined in Section 5.3.
“Ancillary Agreement” has the meaning ascribed to such term in the Purchase Agreement.
“Anti-Terrorism Laws” shall mean Executive Order 13224 and related regulations promulgated and enforced by the Office of Foreign Assets Control, the Money Laundering Control Act, the United States PATRIOT Act, or any similar law, order, rule or regulation enacted in the future.
“Approved Insurance Adjusters” shall mean (a) McLarens, (b) Crawford & Company and (c) such other insurance adjuster as may be selected by Landlord and, so long as no Event of Default then exists and is continuing, approved by Tenant, such approval not to be unreasonably withheld.
“Assignment Agreement” is defined in Section 18.3.
“Banned Person” shall have the meaning assigned to it in Section 19.20.
“Base Rent” is defined in Article A, Section 2.
“Base Term” is defined in Article A, Section 1(a).
“Base Term Expiration Date” is defined in Article A, Section 1(b).
“Building” and “Buildings” respectively mean any one or more of the buildings, structures and other improvements now or hereafter erected on the Land.
“Business Day” has the meaning ascribed to such term in the Purchase Agreement.
“Business Impositions” has the meaning ascribed to such term in Section 3.1
“Buyer” means IC 3700 Flamingo Road Venture LLC, a Delaware limited liability company, together with its successors and permitted assigns. 
“Capital Costs” means all hard and soft costs, expenses, fees and obligations incurred in connection with the design, development, construction and installation of Work which (a) is considered a capital expenditure, repair, improvement, equipment or replacement under GAAP and (b) is of the type that has historically been capitalized on the balance sheet of Tenant based on its past practice.
“Casualty” is defined in Section 7.1.
“Caesars Intellectual Property” means all trademarks, trademark registrations, trademark applications, service marks, trade names, business names, brand names, logos, marks, copyrights, copyright registrations, design or design registrations, trade secrets, know-how, other intellectual property, or any right to any of the foregoing, in each case, owned or used by Tenant or any of its Affiliates other than the Property Marks (as defined in the Purchase Agreement).
“CEC” means Caesars Entertainment Corporation, and its successors.
“Change of Control” means the occurrence of the accumulation, whether directly, indirectly, beneficially or of record, by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended) of 20% or more of the shares of the outstanding equity securities of the applicable Person, whether by merger, consolidation, sale or other transfer of equity.
“Claim” is defined in Section 11.1(c).
“Closed Business” is defined in Section 15.2.
“Code” has the meaning ascribed to such term in the Purchase Agreement.
“Collective Bargaining Agreements” has the meaning ascribed to such term in the Purchase Agreement.
“Commencement Date” is defined in Article A, Section 1(c).
“Complete Taking” is defined in Section 8.1.
“Compliance Committee” is defined in Section 19.22.
“Contemplated Redevelopment” has the meaning ascribed to such term in the Purchase Agreement.
“Culinary CBA” has the meaning ascribed to such term in the Purchase Agreement.
“De-Branding Actions” means Tenant undertaking such de-branding actions as are necessary to preclude confusion on the part of the public as to whether the Premises is a Caesars-branded hotel casino resort, including, without limitation, removing all exterior and interior signage containing Caesars Intellectual Property.
“Default Rate” means a rate per annum equal to the Prime Rate plus four percent (4%) per annum, but in no event in excess of the amount that may be legally charged and collected by Landlord from Tenant.
“Designated Lender” means the Lender designated by Landlord in writing to Tenant as the “Designated Lender” for each of the Mortgage Loan Documents and the Senior Mezzanine Loan Documents; provided, however, that (a) there shall be no more than one Designated Lender (which may be an agent for one or more other lenders) for each of the Mortgage Loan and the Senior Mezzanine Loan and (b) for purposes of this Lease, (i) the rights afforded to such Designated Lenders shall be limited to one Designated Lender (which may be an agent for one or more other lenders) for each of the Mortgage Loan and the Senior Mezzanine Loan and (ii) with respect to Tenant’s obligation in certain circumstances to reimburse any costs and expenses incurred by the Designated Lenders pursuant to the provisions of this Lease, such obligation shall be limited to one counsel for each such Designated Lender (which may be an agent for one or more other lenders). 
“Development Parcel” means a portion of the Land described and depicted on Schedule D.
“Elective Capital Improvement” is defined in Section 5.5.
“Employee” means any individual who is employed on a full-time or part-time basis at, or with respect to, the Premises.
“Employee Benefit Plan” means each “employee benefit plan,” as defined in Section 3(3) of ERISA, each employment agreement, severance agreement or plan, and each other plan, program, fund, or agreement, whether written or unwritten, providing for compensation, bonuses, profit-sharing, equity compensation or other forms of incentive or deferred compensation, insurance (including any self-insured arrangements), health or medical benefits, or post-employment or retirement benefits (including compensation, pension, health, medical or life insurance benefits) which is maintained, administered, or contributed to by Tenant or any of its ERISA Affiliates, and covers any current or former Employee or with respect to which Tenant or any of its ERISA Affiliates has, or once had, any liability with respect to any current or former Employee (including liability pursuant to a reimbursement, indemnification or related obligation pursuant to any contractual arrangement).
“Environmental Law” has the meaning ascribed to such term in the Purchase Agreement.
“Entertainment Contracts” means all existing or future contracts, as the same may be amended from time to time, between Tenant and third parties providing for live entertainment on-site at the Premises in connection with the conduct of Tenant Operations, including but not limited to, concerts, comedy shows, theater performances, magic acts, sporting events and/or other live performances.
“ERISA” has the meaning ascribed to such term in the Purchase Agreement.
“ERISA Affiliate” has the meaning ascribed to such term in the Purchase Agreement.
“Event of Default” is defined in Section 12.1.
“Expiration Date” is defined in Article A, Section 1(d).
“Extension Fee” is defined in Section 1.2.
“Extension Notice” is defined in Section 1.2.
“Extension Option” is defined in Section 1.2. 
“Extension Term” is defined in Section 1.2. 
“Extension Term Expiration Date” is defined in Section 1.2.
“FCC” is defined in Section 18.3.
“FF&E” has the meaning ascribed to such term in the Purchase Agreement.
“Force Majeure” is defined in Section 19.10.
“GAAP” means (a) generally accepted accounting principles consistently applied in the United States and (b) when used in Section 5.5, generally accepted accounting principles consistently applied in the United States by Tenant at the Premises during the three years preceding the commencement of the Term.
“Gaming Authorities” has the meaning ascribed to such term in the Purchase Agreement.
“Gaming Equipment” has the meaning ascribed to such term in the Purchase Agreement.
“Gaming Laws” has the meaning ascribed to such term in the Purchase Agreement.
“Gaming License” means any license, qualification, approval, administrative approval, registration, permit, finding of suitability or other authorization relating to gaming, the gaming business, the operation of a casino, or for the sale or purchase of the Owned Gaming Equipment under the Gaming Laws or required by the Gaming Authorities or otherwise necessary for the operation of gaming, the gaming business, or a casino, or for the sale or purchase of the Owned Gaming Equipment.
“Governmental Entity” has the meaning ascribed to such term in the Purchase Agreement.
“Guarantor” means Caesars Resorts Collection, LLC, a Delaware limited liability company, together with its successors.
“Guaranty” means that certain Guaranty, dated as of the date of the Purchase Agreement, provided by Guarantor to Landlord and Buyer, as the same may be amended from time to time in accordance with its terms.
“Guest Data” means all information and data falling within the fields set forth in Exhibit L to the Purchase Agreement, whether stored digitally, electronically, magnetically or in any other format, in the possession, custody, or control of Tenant or its Affiliates relating to Persons who were customers of the Premises at any time during the Term, but only to the extent permitted under applicable law, including the receipt of any required consent from each such Person to the transfer of such information or data to the extent required by applicable law. Notwithstanding anything in this Lease to the contrary, “Guest Data” shall not include (a) any information relating to the Guest Services (as defined in the Purchase Agreement) used by the applicable Person at, or other information relating to the applicable Person generated primarily as a result of such Person’s visitation of, any of the facilities owned or operated by Tenant or any of its Affiliates other than the Premises, (b) any information exclusively originating from participation by a Person in any World Series of Poker event, whether originating from the Premises or otherwise, (c) any information generated or extrapolated as part of or derived in connection with the Caesars Rewards Program (formerly known as Total Rewards Program) or any other customer loyalty program of Tenant and its Affiliates (it being understood that this exception shall not apply to information merely captured by the Caesars Rewards Program or such other customer loyalty program that would otherwise qualify as Guest Data hereunder), (d) any information originating at the Premises to the extent such information relates to activities of such customers at such other facilities owned or operated by Tenant or any of its Affiliates that are not located at the Premises, (e) any information concerning any histories or use of such other facilities which are owned or operated by Tenant or any of its Affiliates that are not located at the Premises, (f) any proprietary information, techniques or methods of Tenant and its Affiliates related to (i) operating and marketing, gaming, hotel and related businesses (including the Caesars Rewards Program and the World Series of Poker events), (ii) designing, selecting, maintaining, operating, marketing, developing and customizing games used in gaming, hotel and related businesses, (iii) methods of training employees in the gaming, hotel and related businesses, and (iv) proprietary business plans, projections, marketing, advertising and promotion plans, strategies and systems, and (g) any proprietary information, techniques or methods of Tenant and its Affiliates used in connection with the Caesars Rewards Program or any other rewards system which is used at facilities owned or operated by Tenant or any of its Affiliates.
“Hazardous Materials” has the meaning ascribed to such term in the Purchase Agreement.
“Immaterial Use” is defined in Section 17.1.
“Impositions” means, collectively, the Property Impositions and the Business Impositions.
“Indemnified Party” is defined in Section 11.1(c).  
“Indemnifying Party” is defined in Section 11.1(c).
“Junior Mezzanine Borrower” means the owner of 100% of the equity interests in Senior Mezzanine Borrower.
“Junior Mezzanine Loan Agreement” means that certain [Junior Mezzanine Loan Agreement, dated as of the Commencement Date, between Junior Mezzanine Borrower, as borrower, and [__], as lender], as the same may be amended from time to time in accordance with its terms.
“Junior Mezzanine Loan Documents” means the Junior Mezzanine Loan Agreement and other “Loan Documents” (as defined in the Junior Mezzanine Loan Agreement) and other documents and instruments (including all amendments, modifications, side letters and similar ancillary agreements) relating thereto.
“Land” means those certain plots, parcels and pieces of real property described on Schedule A hereto.
“Landlord” is defined in the introductory paragraph hereof.
“Landlord Indemnified Party” and “Landlord Indemnified Parties” are defined in Section 11.1(a).
“Landlord Parties” is defined in Section 11.1(a).
“Landlord Proposed Licensed Parties” is defined in Section 15.7.
“Landlord’s Privacy Policy” is defined in Section 18.5(b).  
“Landlord’s Repair Notice” is defined in Section 7.2.  
“Landlord’s Share” is defined in Section 5.5(a).
“Lease” is defined in the introductory paragraph hereof.
“Legally-Required Capital Improvement” is defined in Section 5.5.
“Legal Requirements” means, with respect to the Premises, all federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Entities affecting the Premises or any part thereof (including, without limitation, all Anti-Terrorism Laws, Environmental Laws, Gaming Laws and the WARN Act), or affecting the construction, use, alteration or operation thereof, or any part thereof, whether now or hereafter enacted and in force, and all permits, licenses and authorizations and regulations relating thereto (including, without limitation, all Operating Permits), and all covenants, agreements, restrictions and encumbrances contained in any instruments promulgated or enacted by a Governmental Entity, either of record or known to Tenant or Landlord, at any time in force affecting the Premises or any part thereof.
“Lender” means any lender (including any agent for such lender) under any Loan Documents.
“Licensed Designee” means any of the following Persons that Landlord designates to Tenant in writing no later than thirty (30) days prior to the end of the Term (a) Landlord or its Affiliate (or, if an event of default exists under the Loan Documents, Lender or its Affiliate) if Landlord or such Affiliate (or, if applicable, Lender or its Affiliate) and Tenant have obtained all applicable Gaming Licenses necessary for Tenant to sell, and Landlord or its Affiliate (or, if applicable, Lender or its Affiliate) to acquire, the Owned Gaming Equipment; or (b) any Person designated by Landlord (or, if an event of default exists under the Loan Documents, Lender) that has obtained all applicable Gaming Licenses necessary for Tenant to sell, and such Person to acquire, the Owned Gaming Equipment, including any such Person that Tenant can sell the Owned Gaming Equipment to who will store it in accordance with applicable Gaming Laws for Landlord or its Affiliate (or, if applicable, Lender or its Affiliate) once Landlord or its Affiliate (or, if applicable, Lender or its Affiliate) has obtained all applicable Gaming Licenses necessary to acquire the Owned Gaming Equipment.  
“Licensed Third Party Designee” means any Person designated by Landlord (or, if an event of default exists under the Loan Documents, Lender) that has obtained all Gaming Approvals and/or Liquor Approvals (each as defined in the Operating Business Schedule) that are the subject of a Likely Disapproval/Delay.
“Lien” means any mortgage, deed of trust, lien, pledge, hypothecation, assignment, security interest, or any other encumbrance, charge or restriction on transfer of, on or affecting the Premises, any portion thereof or any interest therein, including, without limitation, any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing, the filing of any financing statement, and mechanic’s, materialmen’s and other similar liens and encumbrances, in each case whether arising by contract, operation of law, or otherwise.
“Likely Disapproval/Delay” is defined in Section 15.7.
“Loan Documents” means the Mortgage Loan Documents, the Senior Mezzanine Loan Documents and the Junior Mezzanine Loan Documents.  
“Losses” means any and all liabilities, obligations, losses, penalties, costs, grievances, charges, judgments, claims, causes of actions, suits, damages, fees and expenses (including attorneys’ fees and expenses); provided that in no event shall Losses include consequential or punitive damages or diminution of value except to the extent that a Landlord Indemnified Party or a Tenant Indemnified Party, as applicable, is held liable for such damages to a third party due to the actions of a Person obligated to provide indemnification to a Landlord Indemnified Party or a Tenant Indemnified Party, as applicable.
“Major Casualty” is defined in Section 7.1.
“Material Alteration” means any Alteration (a) with an estimated cost of $2,000,000 or more or (b) that is structural in nature or (c) that affects in any material way any building systems, including life safety systems.
“Material Business Interruption Casualty” means a Casualty that is not a Major Casualty but that results in damage or destruction of any portion or portions of the Buildings and/or the Premises (which may include reasonable means of ingress and egress within the Premises, including, without limitation, reasonable means of ingress and egress to the Buildings from the Premises) such that the remaining area of the Buildings and/or the Premises is not reasonably sufficient for Tenant to continue conducting hotel and casino operations within a majority of the floor area of the Buildings used for such operations at the Premises in a manner consistent with such operations immediately prior to such Casualty, as reasonably determined by Tenant. 
“Mortgage” means any mortgage or deed of trust granted by Landlord pursuant to the terms of the Mortgage Loan Documents, and all renewals, modifications, consolidations, replacements, restatements and extensions thereof.
“Mortgage Loan Agreement” means that certain [Loan Agreement, dated as of the Commencement Date, between Landlord, as borrower, and [__], as lender], as the same may be amended from time to time in accordance with its terms.
“Mortgage Loan Documents” means the Loan Agreement, Mortgage and other “Loan Documents” (as defined in the Mortgage Loan Agreement) and other documents and instruments (including all amendments, modifications, side letters and similar ancillary agreements) relating thereto
“Multiemployer Pension Plan” has the meaning ascribed to such term in the Purchase Agreement.
“NRS” is defined in Section 5.8(a).
“Operating Business” is defined in Section 15.2.
“Operating Business Election” means an election by Landlord to cause Tenant to deliver the Premises as an Operating Business pursuant to Section 15.2.
“Operating Business Schedule” is defined in Section 15.2.
“Operating Permits” is defined in Section 18.3.
“Owned Gaming Equipment” means the Gaming Equipment owned by Tenant that does not constitute WSOP Assets, which Gaming Equipment includes the equipment listed in Exhibit E to the Purchase Agreement, as such Exhibit may be updated from time to time prior to the Commencement Date pursuant to the Purchase Agreement and thereafter pursuant to Section 5.6 of this Lease, together with any repairs thereto and/or replacements thereof.  For the avoidance of doubt, the term Owned Gaming Equipment shall not include any Owned Gaming Equipment which has been replaced by other Owned Gaming Equipment even if it is listed on such Exhibit or any updates thereto.
“Partial Taking” is defined in Section 8.1.
“Permitted Exceptions” has the meaning ascribed to such term in the Purchase Agreement except that for purposes of this Lease if Landlord elects to have the Premises delivered as a Closed Business at the end of the Term pursuant to Section 15.2, then “Permitted Exceptions” shall not include the rights of Subtenants under any Subleases related to the Premises unless Landlord has elected to extend such Subleases pursuant to the provisions of Section 5.10 and the same are in fact extended prior to the end of the Term.
“Permitted Equity Transfer” means any transfer, lease, sublease, mortgage, pledge, hypothecation or other encumbrance of any direct or indirect equity interest in Tenant in connection with (a) the merger or consolidation of Tenant with another Person or the sale of all or substantially all of the equity interests and/or assets of any of Tenant’s direct or indirect parent company(ies) but only to the extent that such parent company(ies) directly or indirectly own or lease at least one hotel or hotel casino in addition to Tenant’s leasehold interest in the Premises; (b) the merger transaction between CEC and Eldorado Resorts, Inc. which was publicly announced on June 24, 2019; and/or (c) the Existing Loan (as defined in the Purchase Agreement).
“Permitted Uses” means the operation of a hotel casino resort consistent with the Premises’ use immediately prior to the Commencement Date, and for such uses as may from time to time be necessary, incidental and ancillary thereto, including, without limitation, restaurant, nightclub, entertainment and bar uses, poker and other gaming tournaments, and for conference and event space uses.
“Person” has the meaning ascribed to such term in the Purchase Agreement.
“Pledge Agreement” means that certain Mezzanine Pledge and Security Agreement dated as of the Commencement Date between the Senior Mezzanine Borrower, as pledgor, and the lender under the Senior Mezzanine Loan Agreement, as pledgee, as the same may be amended from time to time in accordance with its terms.
“Premises” means the Land and Buildings, all easements and other appurtenances thereto, the FF&E and all other Purchased Assets, but, for the avoidance of doubt, does not include: (a) the Gaming Equipment, which shall, at all times (even after the end of the Term), continue to be owned or leased by Tenant, except that the Owned Gaming Equipment shall be transferred at the end of the Term to a Licensed Designee subject to the provisions of Section 15.4 or the Operating Business Schedule, as applicable; and (b) the WSOP Assets, which shall, at all times (even after the end of the Term), continue to be owned by Tenant.
“Premises Delivery Notice” is defined in Section 15.2.
“Prime Rate” means the prime or reference rate announced from time to time by Bank of America, N.A.  (or if Bank of America, N.A. ceases to exist or ceases to announce a prime or reference rate, then the prime or reference rate announced from time to time by the then-largest chartered bank based in the United States, in terms of assets).
“Prohibited Use” means, except to the extent a use is existing at the Premises as of the Effective Date of the Purchase Agreement and such use is not prohibited by Legal Requirements: (a) a “strip club” or similar club or establishment; (b) a methadone clinic; (c) a retail discount store or similar establishment; or (d) any other use that is prohibited pursuant to then applicable Legal Requirements. 
“Property Impositions” has the meaning ascribed to such term in Section 3.1
“Property Marks” has the meaning ascribed to such term in the Purchase Agreement.
“Purchase Agreement” means that certain Purchase and Sale Agreement and Joint Escrow Instructions, dated as of September 20, 2019, by and between Buyer and Tenant.
“Purchased Assets” has the meaning ascribed to such term in the Purchase Agreement.
“Relevant Dollar Amount” means the amount of real property tax attributable to the jointly assessed land on a per acre per day basis determined in the same manner as the amount set forth in Section 3.1(c)(ii)(A)(x) for the 2019-2020 tax year.  A spreadsheet showing how such amount was calculated is attached hereto as Schedule G.
“Remedial Work” is defined in Section 17.7.
“Rent” means Base Rent and Additional Rent.
“Request for Payment” is defined in Section 5.5(b).
“Senior Mezzanine Borrower” means the owner of 100% of the equity interests in Landlord.
“Senior Mezzanine Loan Agreement” means that certain [Mezzanine Loan Agreement, dated as of the Commencement Date, between Senior Mezzanine Borrower, as borrower, and [__], as lender], as the same may be amended from time to time in accordance with its terms.
“Senior Mezzanine Loan Documents” means the Senior Mezzanine Loan Agreement, Pledge Agreement and other “Loan Documents” (as defined in the Senior Mezzanine Loan Agreement) and other documents and instruments (including all amendments, modifications, side letters and similar ancillary agreements) relating thereto.
“Service Contracts” means any service, management, security, cleaning or other similar contracts relating to the operation and/or management of the Premises.
“Service Providers” means (a) the architects, engineers, consultants and other design professionals that have provided or are providing design or engineering services required for the Work and plans supporting the Work; (b) the contractors and subcontractors that have performed or are performing Work resulting in Capital Costs; and (c) suppliers who have supplied or are supplying materials in connection with the construction of the Work.
“SNDA” is defined in Section 10.1.
“Subject Contract” is defined in Section 5.10.
“Sublease” means any existing or future lease, sublease, license or other agreement permitting a third party with the right to occupy all or any portion of the Premises, including any Lease (as defined in the Purchase Agreement) in effect as of the Commencement Date that has, because of the existence of this Lease, become a sublease.
“Subtenant” means any tenant, subtenant or other Person entitled to occupy all or any portion of the Premises pursuant to a Sublease.
“Suitability Problem” is defined in Section 19.22.
“Suitability Problem Notice” is defined in Section 19.22.
“Taking” is defined in Section 8.1.
“Target Date” is defined in Section 1.1.
“Tenant” is defined in the introductory paragraph hereof.
“Tenant Employees” is defined in Section 18.2.
“Tenant Indemnified Party” and “Tenant Indemnified Parties” are defined in Section 11.1(b).
“Tenant Operations” means the operations of Tenant conducted at the Premises.
“Tenant Parties” is defined in Section 11.1(a).
“Tenant Privacy Policy” is defined in Section 18.5(b).
“Tenant’s Share” is defined in Section 5.5.
“Term” is defined in Article A, Section 1(e).
“Transfer” is defined in Section 9.1.
“Transferred Personal Property” means, to the extent assignable, all tangible personal property owned by Tenant and located at the Premises as of the Expiration Date; provided, however, that the Transferred Personal Property shall not include (a) the Owned Gaming Equipment, (b) the WSOP Assets, (c) any and all personal property subject to removal from the Premises pursuant to the De-Branding Actions, (d) any and all cash, cash equivalents, checks, travelers’ checks and bank drafts, (e) any information or data, whether stored digitally, electronically, magnetically or in any other format, in the possession, custody, or control of Tenant or any of its Affiliates relating to Persons who were customers of the Premises at any time (other than Guest Data); and (f) any intellectual property rights of Tenant or any of its Affiliates (other than the Property Marks).
“Use Restrictions” has the meaning ascribed to such term in the Purchase Agreement.
“WARN Act” means the Worker Adjustment and Retraining Notification Act, as amended.
“Wind Down Notice” is defined in Section 15.5.
“Work” is defined in Section 5.4.
“WSOP Assets” has the meaning ascribed to such term in the Purchase Agreement.
Principles of Construction.  In this Lease, except to the extent otherwise provided or the context otherwise requires: (a) when a reference is made in this Lease to an Article, Section, Exhibit or Schedule, such reference is to an Article or Section of, or an Exhibit or Schedule to, this Lease unless otherwise indicated; (b) the headings for this Lease are for reference purposes only and do not affect in any way the meaning or interpretation of this Lease; (c) whenever the words “include,” “includes” or “including” are used in this Lease, they are deemed to be followed by the words “without being limited to”; (d) the words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Lease, refer to this Lease as a whole and not to any particular provision of this Lease; (e) all terms defined in this Lease have the defined meanings when used in any certificate or other document made or delivered pursuant hereto, unless otherwise defined therein; (f) the definitions contained in this Lease are applicable to the singular as well as the plural forms of such terms; (g) any reference to “days” means “calendar days” unless otherwise specified; (h) if a notice is to be given on a specified day, unless otherwise specifically provided herein, it must be given prior to 5.00 p.m., Las Vegas time; (i) references to a Person are also to its successors and permitted assigns; (j) the use of “or” is not intended to be exclusive unless expressly indicated otherwise; (k) any reference “$” and “dollars” is to the lawful money of the United States of America; and (l) unless otherwise expressly provided herein, any agreement, instrument, statute, rule or regulation defined or referred to herein or in any agreement or instrument defined or referred to herein means such agreement, instrument, statute, rule or regulation as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes, rules and regulations) by succession of comparable successor statutes, rules and regulations.  
Article 1 
PREMISES AND TERM
1.1    Lease of Premises.  
(a)    Landlord, in consideration of the Rent herein reserved and of the terms, provisions, covenants and agreements on the part of Tenant to be kept, observed and performed, does hereby lease and demise the Premises unto Tenant for the Term, and Tenant does hereby hire and take the Premises from Landlord for the Term, subject to those matters affecting title to the Premises as of the date hereof, any other matters affecting title to the Premises hereafter created by Tenant and consented to by Landlord and such other matters affecting title to the Premises hereafter created by Landlord and, to the extent the same either (i) interferes in any material respect with Tenant’s rights under Article 14 or (ii) would impose upon Tenant any monetary obligation (unless Landlord has agreed to reimburse Tenant for any such monetary obligation) or any material non-monetary obligation, consented to by Tenant; provided, however, that Tenant shall not be required to comply with or perform any matter affecting title to the Premises hereafter created by Landlord unless Tenant has consented to it.  Tenant hereby consents to any lien or other matter affecting title to the Premises created by the Loan Documents, including, without limitation, any Mortgage recorded in connection therewith; provided, however, that Landlord shall be solely responsible for (and Tenant shall have no responsibility for) performing all obligations under, and complying with all provisions, of such Loan Documents including the Mortgage. For the avoidance of doubt, the foregoing sentence shall not release Tenant from performing or complying with any of its obligations pursuant to the SNDA. 
(b)    Notwithstanding the foregoing provisions of this Section 1.1, in the event that Landlord plans to sell, develop and/or separately finance the Development Parcel, Landlord shall provide Tenant with at least thirty (30) days’ prior written notice of the same and the proposed date after which the Premises shall no longer constitute a portion of the Premises, which in no event shall be earlier than August 31, 2020 (such date, the “Target Date”) and after the Target Date: (i) the Development Parcel shall no longer constitute a portion of the Premises hereunder; (ii) Tenant shall execute such documentation as may be reasonably requested by Landlord or any purchaser or lender of the Development Parcel to acknowledge that the Development Parcel is no longer a part of the Premises; (iii) if Tenant desires to use the Development Parcel for an event occurring at the Premises after the Target Date and Landlord or any of its Affiliates still owns the Development Parcel at the time of such event, Tenant will provide Landlord with no fewer than thirty (30) days’ notice of the dates of such event and the portions of the Development Parcel it desires to use and Landlord will (or will cause its Affiliate to) use good faith efforts to permit Tenant to use the requested portions of the Development Parcel so long as such use would not adversely affect the development of the Development Parcel, and (iv) if Landlord sells the Development Parcel prior to August 31, 2020, Landlord shall, at no expense to Tenant, cause the purchaser of the Development Parcel to execute a license agreement or other documentation reasonably required by Tenant to permit Tenant’s exclusive use of the Development Parcel at all times prior to August 31, 2020.  From and after the date the Development Parcel is no longer part of the Premises, Tenant shall no longer be obligated to perform or comply with any provisions of this Lease with respect to the Development Parcel, including, without limitation, maintaining insurance coverage or paying Property Impositions with respect to the Development Parcel, but, for the avoidance of doubt, the Base Rent shall not be reduced as a result of the Development Parcel no longer being part of the Premises. In the event Landlord sells or plans to develop the Development Parcel, Landlord assumes all risk and responsibility under the Culinary CBA for such sale or development, including, but not limited to, any litigation or disputes arising from such sale or development.  
1.2    Extension Option.  So long as no default of this Lease on the part of Landlord has occurred and is continuing on the date of the delivery of the Extension Notice or the Base Term Expiration Date, Landlord shall have the one-time right and option (the “Extension Option”), exercisable upon (a) written notice (the “Extension Notice”) to Tenant not later than twelve (12) months prior to the scheduled expiration of the Base Term, to extend the Base Term by a period (the “Extension Term”) of not less than one (1) month, and not more than twelve (12) months, as such Extension Term is specified by Landlord in such Extension Notice (the date on which the Extension Term is scheduled to end is the “Extension Term Expiration Date”), and (b) payment to Tenant of an amount (the “Extension Fee”) equal to the number of months in the Extension Term (as specified by Landlord in its Extension Notice) multiplied by $583,333.33, which Extension Fee shall be prorated for any partial months and shall be paid as follows: (i) one-half of the Extension Fee shall be paid to Tenant concurrently with delivery of the Extension Notice and (ii) one-half of the Extension Fee shall be paid to Tenant in equal monthly installments, commencing on the first day of the calendar month after the Extension Notice is delivered and on the first day of each calendar month thereafter until the Base Term Expiration Date.  In the event that Landlord fails to timely pay Tenant any monthly portion of the Extension Fee, Tenant may offset the amount of such fee from its next payment of monthly Rent. If so extended, the Base Term shall be extended to the end of the Extension Term and Tenant shall continue to lease the Premises pursuant to the terms of this Lease including the provisions of Article 2 and Section 5.10; provided, however, that Landlord shall have no further option or right to extend the Term.
ARTICLE 2     
RENT
2.1    Base Rent.  Tenant shall pay to Landlord as Base Rent for the Premises during the Term the amount stated in Article A, Section 2.  Base Rent shall be payable in monthly installments in advance on the Commencement Date and the first (1st) Business Day of each and every month thereafter during the Term, without previous demand, notice or presentment therefor and without abatement, offset or deduction of any kind whatsoever, other than as expressly provided for in Section 3.1, Section 5.5, Section 7.1 or Section 8.1.  If Tenant fails to pay any installment of Base Rent on or before the date when due hereunder, Tenant shall owe Landlord, in addition to the installment of Base Rent, interest on such installment at the Default Rate, computed from the date such payment was due and including the date of payment.
2.2    Additional Rent; Triple Net Lease.  This Lease is a triple net lease.  Accordingly, except for any payments expressly required to be made by Landlord pursuant to the terms of this Lease, in addition to the payment of Base Rent, Tenant shall pay, as additional rent for the Premises during the Term, any and all amounts required to be paid by Tenant to Landlord pursuant to the provisions of this Lease, including Tenant’s obligation to reimburse Landlord for one-half of its annual premiums for the insurance specified on Schedule C not to exceed $700,000 (collectively, the “Additional Rent”).  Additional Rent shall be payable when due, without previous demand, notice or presentment therefor and without abatement, offset or deduction of any kind whatsoever, other than as expressly provided for in Section 3.1, Section 5.5, Section 7.1 or Section 8.1.  If Tenant fails to pay any installment of Additional Rent on or before the date when due hereunder and such failure shall continue for thirty (30) days after written notice of such failure from Landlord, Tenant shall owe Landlord, in addition to the payment of Additional Rent, interest on such amount at the Default Rate, computed from the date such payment was due and including the date of payment.
ARTICLE 3     
UTILITIES AND TAXES
3.1    Taxes.  
(a)    Tenant agrees to pay directly to the applicable Governmental Entities, before delinquency, all real and personal property taxes, impositions, assessments, water and sewer rates and charges, and other governmental taxes or charges, general and special, ordinary and extraordinary, of any kind and nature whatsoever, that are assessed, levied, imposed or are or may become a lien upon the Premises or any portion thereof, the Buildings, the FF&E, Gaming Equipment and/or any other personal property belonging to Tenant and which become payable during the Term (together with interest and/or penalties thereon in the event the same are not timely paid, collectively, “Property Impositions”), but excluding any income taxes payable by Landlord.  Notwithstanding the foregoing, in the event that any Property Imposition relates to a fiscal period of the taxing authority, a part of which period is included within the Term and a part of which is included in a period of time after the Term, such Property Imposition shall (whether or not it shall be assessed, levied, imposed or become a lien upon the Premises, the Buildings and/or Tenant’s personal property, or shall become payable, during the Term) be adjusted between Landlord and Tenant as of the last day of the Term so that Landlord shall pay that portion of such Property Imposition that relates to that part of the fiscal period from and after the last day of the Term, and Tenant shall pay that portion of which relates to the period prior to the last day of the Term; provided, however, that no adjustment shall be made with respect to Property Impositions assessed on any Gaming Equipment or other personal property belonging to Tenant which Landlord or other Licensed Designee does not acquire at the end of the Term.  Landlord and Tenant shall in good faith jointly determine any such adjustments and payments, and such resulting adjustment and payment obligations shall survive the expiration of the Term.  In the event that any such jointly-determined adjustments and payments in favor of Tenant have not been made prior to the last month of the Term, Tenant may, if Landlord has not paid any such jointly-determined adjustments or payments to Tenant within five (5) Business Days following Tenant’s written notice for such payment, offset the amount of such adjustments and payments from its last payment of monthly Rent.  Further, Tenant may elect, upon written notice to Landlord, to take commercially reasonable steps to file and enforce tax appeal proceedings to reduce such Property Impositions, all at Tenant’s expense; provided, however, that to the extent that the Property Impositions relate to (y) any portion of the Premises and (z) a fiscal period of the taxing authority, a part of which period is included within the Term and a part of which is included in a period of time after the Term, Tenant may not file and enforce such tax appeal proceedings without Landlord’s prior written consent, which consent may not be unreasonably withheld, conditioned or delayed.
(b)    Tenant agrees to pay directly to the applicable Governmental Entities, before delinquency, all sales, excise, gaming and other taxes, impositions, assessments, and other governmental fees and charges, ordinary and extraordinary, of any kind and nature whatsoever, that arise out of Tenant’s business operations during the Term, including the sale of goods and services by Tenant (but excluding the Property Impositions), whether payable or assessed during the Term or after the Term (together with interest and/or penalties thereon in the event the same are not timely paid, “Business Impositions”), but excluding any income taxes payable by Landlord.  Further, Tenant may elect to take commercially reasonable steps to file and enforce tax appeal proceedings to reduce such Business Impositions, all at Tenant’s expense.  Further, to the extent Landlord owes Nevada commerce tax with respect to the amount of the Rent paid to or accrued in favor of Landlord hereunder, Tenant shall reimburse Landlord the amount of such tax promptly upon Landlord’s request for such payment, together with reasonable supporting documentation.
(c)    In the event that the Development Parcel no longer constitutes a portion of the Premises during the Term and the Development Parcel and the remainder of the Premises are jointly assessed for real property tax and assessment purposes, (i) Tenant shall pay all real property taxes and assessments for the Premises and the Development Parcel for the remainder of the fiscal period of the taxing authority (subject to adjustment pursuant to subsection (a) above if such fiscal period extends beyond the Term); and (ii) Landlord shall promptly reimburse Tenant as follows: (A) with respect to the tax period July 1, 2019 through June 30, 2020, the amount equal to (x) $14.24 multiplied by (y) the total number of acres comprising the Development Parcel multiplied by (z) the number of days within such tax period from and after the Target Date; and (B) with respect to any subsequent tax year period, the amount equal to (x) the Relevant Dollar Amount multiplied by (y) the total number of acres comprising the Development Parcel multiplied by (z) the number of days within such tax period from and after the Target Date.  Landlord and Tenant shall in good faith jointly determine the foregoing amounts, and such resulting payment and reimbursement obligations shall survive the expiration of the Term.  In the event that any such jointly-determined payments and reimbursements in favor of Tenant have not been made with thirty (30) days of the Target Date, Tenant may, if Landlord has not paid any such jointly-determined adjustments or payments to Tenant within five (5) Business Days following Tenant’s written notice for such payment, offset the amount of such adjustments and payments from its next payment of monthly Rent.  
3.2    Utilities.  Tenant shall be responsible for all fees and charges for use or consumption for sewer, gas, electricity, water, heat, conditioned cold air supply or chilled water supply, telephone, cable, Internet, sanitation, solid waste disposal and all other utility services furnished to the Premises.  Tenant shall pay for all utilities directly to the respective utility provider prior to delinquency thereof.  If any such utilities are not separately metered or separately billed to the Premises from other property not constituting the Premises, then Tenant shall pay an equitable share, to be reasonably determined by Landlord, of all charges jointly metered with other premises.
3.3    Impound Accounts.  At Landlord’s option following the occurrence and during the continuation of an Event of Default described in Section 12.1(a) (to be exercised by fifteen (15) days’ written notice to Tenant), Tenant shall be required to deposit, at the time of any payment of Base Rent, an amount equal to one-twelfth of the sum of (a) Tenant’s estimated annual Impositions required pursuant to Section 3.1 hereof (as reasonably estimated by Landlord) and (b) Tenant’s estimated annual insurance premium costs (as reasonably determined by Landlord).  Such amounts shall be applied by Landlord to the payment of the obligations in respect of which said amounts were deposited on or before the respective dates on which the same or any of them would become delinquent.  Interest, if any, carried on such amounts shall accrue for the benefit of and be payable to Tenant at the end of the Term.  The reasonable cost of administering such impound account shall be paid by Tenant.  Nothing in this Section 3.3 shall be deemed to affect any right or remedy of Landlord hereunder.
ARTICLE 4     
NO LANDLORD WORK
Landlord shall not have any obligation to construct any improvements on the Premises prior to delivering the Premises to Tenant and Tenant accepts the Premises in its present “AS-IS, WHERE IS” condition as of the Commencement Date.  
ARTICLE 5     
USE AND OPERATION OF PREMISES; ALTERATIONS AND REPAIRS
5.1    Compliance with all Legal Requirements.  Tenant shall promptly comply in all material respects with all Legal Requirements with respect to the Premises (or any part thereof) and the use and occupation thereof by Tenant. Tenant shall not create or permit to exist any waste on or with respect to the Premises.Maintenance.  Subject to the provisions of Section 5.5, Article 7 and Article 8, Tenant shall, at Tenant’s sole cost and expense, maintain and repair the Buildings, the FF&E and the Gaming Equipment consistent with Tenant’s ordinary course of business for the three (3) years prior to the Commencement Date except for ordinary wear and tear and any such damage that arises from any Landlord Parties’ acts or omissions, including negligence or intentional misconduct.  Landlord shall not be required to maintain and, except for Landlord’s obligations under Section 5.5, Article 7, Article 8, Section 16.1 and Section 16.2, Landlord shall not be required to make any repairs or alterations to the Premises during the Term.
5.2    Alterations.  Tenant shall have the right at any time and from time to time during the Term to make, at its sole cost and expense, changes, repairs, restorations, alterations, additions, improvements, or other work in or to the Premises (collectively, “Alterations”), subject, however, in the case of any Material Alteration, to the prior written consent of Landlord or Designated Lender (to the extent required by the Loan Documents), which shall not be unreasonably withheld, conditioned or delayed so long as such Material Alterations are not structural and do not affect in any material way building systems (in which case Landlord’s and Designated Lender’s consent may be withheld in its sole discretion).  Notwithstanding the foregoing, if a Material Alteration also constitutes a Legally-Required Capital Improvements, then neither Landlord nor any Lender shall have any approval rights pursuant to this Section 5.3 and the Parties shall instead be governed by the provisions of Section 5.5).  
5.3    Cost of Work.  Subject to the provisions of Section 5.5, Tenant agrees that all Alterations which Tenant shall be required or permitted to do under the provisions of this Lease with respect to the Premises (each hereinafter called the “Work”) shall be at Tenant’s sole cost and expense, performed in a good, workmanlike manner, in compliance in all material respects with applicable Legal Requirements and in accordance with Section 5.8. 
5.4    Reimbursement for Capital Costs. 
(a)    Notwithstanding anything herein to the contrary, Tenant shall not be obligated to make any capital improvements, repairs or replacements with respect to the Premises; provided, however, that (i) Tenant shall be obligated to make any capital improvement, repair or replacement with respect to the Premises which is required in order to comply with Legal Requirements (each a “Legally-Required Capital Improvement”); and (ii) subject to the provisions of Section 5.3, Tenant may make any capital improvement, repair or replacement with respect to the Premises which is not a Legally-Required Capital Improvement in its sole discretion (each an “Elective Capital Improvement”).  Tenant shall be responsible for (A) all of the Capital Costs incurred for any Elective Capital Improvement, and (B) a percentage of the Capital Costs incurred for any Legally-Required Capital Improvement (“Tenant’s Share”), which percentage is calculated by (y) taking the number of months in the Term remaining after the completion of such Legally-Required Capital Improvement, and (z) dividing it by the number of months in the estimated useful life for such Legally-Required Capital Improvement, as such estimated useful life is reasonably determined pursuant to GAAP.  Upon completion of a Legally-Required Capital Improvement and receipt of evidence of payment of the related Capital Costs, Landlord shall reimburse Tenant for the Capital Costs incurred for such Legally-Required Capital Improvement less Tenant’s Share (such share paid by Landlord, “Landlord’s Share”).  As an example, if a Legally-Required Capital Improvement had a useful life of five (5) years and such Legally-Required Capital Improvement was done with one (1) year left in the Term, Landlord would reimburse Tenant eighty percent (80%) of the Capital Costs incurred for such Legally-Required Capital Improvement. 
(b)    No more frequently than monthly, Tenant may submit to Landlord a request for reimbursement of the Capital Costs to be reimbursed by Landlord pursuant to Section 5.5(a) above (each a “Request for Payment”), which request shall (i) set forth the amount of Capital Costs to be reimbursed by Landlord in connection with such Request for Payment, (ii) include a copy of any invoice or invoices from the applicable Service Providers for such Capital Costs being covered by the Request for Payment, and (iii) any allocation to reasonable out-of-pocket soft costs actually incurred in connection with such Capital Costs being covered by the Request for Payment.  Landlord shall pay to Tenant the amount payable under each Request for Payment on or before thirty (30) days after such Request for Payment was delivered to Landlord.  Notwithstanding anything herein to the contrary, to the extent that Landlord does not timely pay Tenant the amount properly payable under any Request for Payment, Tenant shall, if such failure is not cured by Landlord within an additional ten (10) days after a second written notice, be permitted to deduct such amount payable from the next payment of Base Rent owing to Landlord. The foregoing reimbursement obligations shall survive the expiration or earlier termination of this Lease.
(c)    Notwithstanding the foregoing provisions of this Section 5.5, if Tenant reasonably expects Landlord’s Share of the Capital Cost of a Legally-Required Capital Improvement to exceed $375,000 in the aggregate, (i) Landlord and Tenant shall consult with each other in good faith and use commercially reasonable efforts to (A) determine if a less expensive alternative or other solutions (including contesting the applicability or need for such Legally-Required Capital Improvement to the extent such contest does not violate Legal Requirements) are available to avoid, mitigate or defer such Capital Costs and still comply with Legal Requirements; and (B) jointly-determine the appropriate scope of the work, taking into account the remaining balance of the Term, improvements to be made pursuant to the Contemplated Redevelopment, the time required to complete such Legally-Required Capital Improvement in order to comply with applicable Legal Requirements and other relevant factors; and (ii) such Capital Costs shall be bid out to not less than three qualified independent contractors; provided, however, that (1) if the Legally-Required Capital Improvement is required to be made by any Legal Requirement or Governmental Entity within fifteen (15) days or less or is a “life/safety” Legally-Required Capital Improvement, Tenant shall not be required to comply with the provisions of this Section 5.5(c) if Tenant notifies Landlord thereof promptly after receiving notice of such required Legally-Required Capital Improvement and in any event prior to commencing performance of such Legally-Required Capital Improvement; and (2) if the provisions of this Section 5.5(c) are applicable but, after exercising their respective good faith efforts to do so, Landlord and Tenant are unable to agree upon the appropriate scope of work, the appropriate contractor or any other material issue relating to the performance of such Legally-Required Capital Improvement within sixty (60) days or such shorter period as may be required by the Legal Requirement or Governmental Entity to make such Legally-Required Capital Improvement, Tenant shall have the right, upon providing written notice of such inability to agree, Tenant’s intention to perform the related work and the estimated cost of the related work, to perform such Legally-Required Capital Improvement to the extent that a continued failure to do so would violate Legal Requirements.  
(d)    For the avoidance of doubt, Landlord shall not be required to reimburse Tenant for any portion of the Capital Costs for any Legally-Required Capital Improvement for which Tenant received notice of the need for such Legally-Required Capital Improvement from a Governmental Entity prior to the Commencement Date.
5.5    Property of Landlord; Gaming Equipment.  All Alterations and FF&E (exclusive of Gaming Equipment and other personal property belonging to Tenant) shall immediately upon their installation or placement on or within the Premises become the property of Landlord, without the need for any further instrument (but at Landlord’s request, Tenant shall confirm the same from time to time in a writing reasonably satisfactory to Landlord), and shall remain upon and be surrendered with the Premises.  All Gaming Equipment, including any replacements thereof (which, in the case of Owned Gaming Equipment, shall be of the same or better quality and functionality) or additions thereto made during the Term, shall be owned or leased by Tenant at all times, subject to the provisions set forth in Section 15.4.  Within thirty (30) days after the end of each calendar quarter during the Term, Tenant shall deliver to Landlord an update to the most recent list of Owned Slot Machines and Gaming Tables (as defined in the Purchase Agreement) provided to Landlord or its Affiliates.
5.6    Legal Requirements of Work.  Tenant shall be responsible at its own expense for determination and assurance that all Work is in compliance with all Legal Requirements in all material respects or have been waived by the appropriate Governmental Entities and for obtaining any approvals or consents of Governmental Entities required in connection with any and all Work.
5.7    Liens.  
(a)Pursuant to Nevada Revised Statutes (“NRS”) 108.234, Landlord hereby informs Tenant that if Tenant undertakes any “work of improvement” (as such term is defined in NRS 108.22188), Tenant must comply with the requirements of NRS 108.2403 and NRS 108.2407 prior to contracting for and commencing any work of improvement in, on or about the Premises.  Tenant shall take all actions necessary under Nevada law to ensure that no Liens encumbering the Premises arise as a result of any such work of improvement, which actions shall include, without limitation, the recording of a notice of posted security in the Office of the County Recorder of Clark County, Nevada, in accordance with NRS 108.2403 and either (i) the establishment of a construction disbursement account pursuant to NRS 108.2403(1)(b)(1) that is funded in an amount equal to one hundred percent (100%) of the total cost of the contract for the construction of such work of improvement, or (ii) the furnishing and recording, in accordance with NRS 108.2403(1)(b)(2), of a surety bond for the contract for the construction of any such work of improvement, which surety bond shall meet the requirements of NRS 108.2415.  Tenant shall notify Landlord promptly upon the signing of any contract with the contractor for any work of improvement, and concurrently with such notice, shall provide Landlord with such contractor’s mailing address and other contact information.  Tenant’s contractors may not enter the Premises to begin any work in the Premises until Tenant has delivered evidence satisfactory to Landlord that Tenant has complied with the terms of this Section.  Further, Landlord shall have the right to post and maintain any notices of non-responsibility.   
(b)If at any time during the Term, any mechanic’s or other Lien or order for payment of money, which shall have been either created by, caused by, or suffered against Tenant or any Person acting through or under Tenant, shall be filed against the Premises or any part thereof, Tenant, at its sole cost and expense, shall cause the same to be discharged by payment, bonding or otherwise, within the earlier to occur of (i) thirty (30) days after Tenant receives notice of the filing thereof unless such Lien or order is being contested by Tenant in good faith and (ii) the end of the Term; provided, however, that in the event there has been commencement of a foreclosure sale of any portion of the Premises, or any other enforcement action, on account of such Lien being contested by Tenant, Tenant shall remove such Lien, either by payment, bonding or otherwise within ten (10) days of the commencement of such foreclosure or such other enforcement action.
5.8    Permitted Uses.  Tenant shall use the Premises solely for the Permitted Uses.  Tenant shall not use the Premises or any portion thereof for any Prohibited Use or any other use without the prior written consent of Landlord, which consent for any use (other than a Prohibited Use) shall not be unreasonably withheld, conditioned or delayed.  
5.9    Continuous Use; Wind Down.  Except in instances of casualty or condemnation or as otherwise provided in this Section, Tenant shall during the Term continuously conduct hotel and casino operations at the Premises consistent with the manner of its hotel and casino operations at the Premises for the three (3) year period prior to the Commencement Date; provided, however that (i) Tenant shall not be required to hold the World Series of Poker event at the Premises after its 2020 occurrence; (ii) Tenant may at any time, in its sole discretion, cease operating the entertainment shows and/or venues at the Premises, including Chippendales, Penn & Teller and WOW –The Vegas Spectacular, and may relocate them to other properties operated by Tenant’s Affiliates; (iii) after the first anniversary of the Commencement Date, Tenant may cease or terminate certain food and beverage retail operations at the Premises which are not reasonably required to support Tenant’s hotel and casino operations at the Premises and may relocate them to other properties operated by Tenant’s Affiliates; and (iv) from and after the date Landlord elects for the Premises to be delivered as a Closed Business pursuant to Section 15.2, Tenant shall have the right to wind down and cease all Tenant Operations at the Premises in a manner as Tenant determines in its sole discretion consistent with applicable Collective Bargaining Agreements.  At the request of Landlord, Tenant shall reasonably cooperate with Landlord by requesting the continuance of any Subleases, any service contracts or other vendor arrangements excluding, for the avoidance of doubt, all Entertainment Contracts (collectively, “Subject Contracts”) at or to the Premises after the Term on a month-to-month or other basis agreed to between Landlord and the applicable third party to the applicable Subject Contract, provided that (a) Tenant shall have no liability whatsoever to Landlord if (1) such Subject Contract has already expired or been terminated, or (2) any such third party to the applicable Subject Contract fails to agree to extend its Subject Contract beyond the Term, (b) Tenant shall have no liability whatsoever under any extended Subject Contract for any period after the end of the Term, and (c) Landlord shall reimburse Tenant, within thirty (30) days of request therefor, for the reasonable out-of-pocket costs or expenses incurred by Tenant in connection with such cooperation. The foregoing reimbursement obligations and exclusions of liability shall survive the expiration or earlier termination of this Lease.
5.10    Quarterly Reporting.  Tenant shall furnish to Landlord on or before thirty (30) days after the end of each calendar quarter during the Term the following items, accompanied by a certificate from an authorized officer of Tenant, stating that such items are true, correct, accurate in all material respects, and complete and fairly present the financial condition and results of the operations of the Tenant and the Premises in all material respects (subject to normal year-end adjustments) as applicable:  (a) an occupancy report for the subject month, including an average daily rate and revenue per available room; (b) monthly and year-to-date operating statements prepared for each calendar month, noting net operating income, gross income, and operating expenses and other information necessary and sufficient to fairly represent the financial position and results of operation of the Tenant and the Premises during such calendar month, and containing a comparison of budgeted income and expenses and the actual income and expenses; (c) a balance sheet for Tenant; (d) a report on and breakdown of the food and beverage and other revenue for the Premises for such calendar month; (e) a capital expenditure report for such month; and (f) a planned booking pace report for the Premises. 
5.11    Post-Term Management Services.  If Landlord has exercised its Extension Option in accordance with Section 1.2, Landlord has elected to be delivered the Premises as an Operating Business pursuant to Section 15.2 and Landlord desires to have Tenant manage the Premises for Landlord following the Extension Term Expiration Date, Landlord shall deliver written notice to Tenant not later than one (1) year prior to the Extension Term Expiration Date specifying such desire and the anticipated term of such management (which management term shall not be longer than twelve (12) months after the Extension Term Expiration Date).  Promptly following receipt of such notice, Tenant shall deliver to Landlord the form of management agreement pursuant to which Tenant would be willing to manage the Premises for Landlord. Landlord and Tenant agree that such form of management agreement (a) shall not be required to be comparable to any “arms-length” management agreements; (b) shall not impose any obligation upon Tenant to maximize revenues or profits at the Premises; (c) shall not impose any obligation to either steer players and/or guests from other properties owned and/or operated by Tenant or its Affiliates to the Premises or to refrain from steering players and/or guests at the Premises to other properties owned and/or operated by Tenant or its Affiliates; and (d) shall permit Tenant to continue to allocate centralized costs to the Premises. Landlord acknowledges that it will only be electing to have Tenant manage the Premises following the Extension Term Expiration Date as a last resort.  If, on or before the date that is thirty (30) days prior to the Extension Term Expiration Date, (i) Landlord has not executed or delivered to Tenant the form of management agreement provided by Tenant, then Tenant shall have no obligation to manage the Premises following the Extension Term Expiration Date; and (ii) Landlord has executed and delivered to Tenant the form of management agreement provided by Tenant, but Landlord has not obtained all applicable Gaming Licenses, Gaming Approvals (as defined in the Operating Business Schedule) and Liquor Approvals (as defined in the Operating Business Schedule) and any other licenses and permits necessary to enter into such management agreement or be entitled to the benefits thereunder, then (1) Tenant shall have no obligation to manage the Premises following the Extension Term Expiration Date, (2) Landlord shall be deemed to have failed to consummate the transactions contemplated by the Operating Business Schedule, and (3) the terms of Section 15.5 of this Lease shall apply (and, for the avoidance of doubt, Tenant shall have the ability to exercise its rights under clause (ii) of Section 15.5 of this Lease).  Notwithstanding anything herein to the contrary, Tenant shall have no obligation to manage the Premises following the Extension Term Expiration Date in the event that Landlord elects to retain a Licensed Third Party Designee.
5.12    Transition Services Upon Expiration of the Lease.  If Landlord has elected to be delivered the Premises as an Operating Business pursuant to Section 15.2 and Landlord has provided to Tenant written notice, no later than twelve (12) months prior to the end of the Term, as such Term may be extended, that it desires Tenant to provide transition services at the end of the Term, Landlord and Tenant shall (and Landlord shall cause Buyer to, and Tenant shall cause Guarantor to), upon the expiration of the Term, as such Term may be extended, enter into a Transition Services Agreement substantially in the form attached hereto as Schedule I.
ARTICLE 6     
INSURANCE
6.1    Tenant’s Insurance.  Throughout the Term, Tenant shall, at its sole cost and expense, (a) obtain and keep in force the insurance specified on Schedule B attached hereto and (b) comply with its obligations under such Schedule B.
6.2    Landlord’s Insurance.  Throughout the Term, Landlord (a) shall, at Landlord’s sole cost and expense, (i) obtain and keep in force the insurance specified on Schedule C attached hereto; provided, however, that Tenant shall reimburse Landlord for one-half of its annual premiums for the insurance specified on Schedule C, which reimbursement obligation shall not exceed $700,000 per annum, and (ii) comply with its obligations under such Schedule C, and (b) may, at Landlord’s sole cost and expense, obtain and keep in force such additional insurance as Landlord may elect, including any additional insurance required by any Loan Documents.  Further, Landlord shall pay all costs and expenses to comply with any and all engineering requirements of its insurance carriers and, if such requirements are not completed to its insurance carriers’ satisfaction and coverage is withdrawn, Landlord is solely responsible for paying for replacement coverage and any losses which occur in the interim period. 
6.3    Waivers of Subrogation Rights.  All policies of insurance required hereunder shall include waivers of subrogation.  The policies shall provide such waivers of subrogation by endorsement or otherwise.  A waiver of subrogation shall be effective as to a Person even though that Person would otherwise have a duty of indemnification, contractual or otherwise, did not pay the insurance premium directly or indirectly, and whether or not the Person had an insurable interest in the property damaged.
ARTICLE 7     
DAMAGE OR DESTRUCTION
7.1    Total or Substantial Destruction.  Tenant shall promptly notify Landlord in case of damage to or destruction of the Premises due to fire or other casualty (collectively, “Casualty”).  In the event that such Casualty causes the destruction of all or substantially all of the Buildings on the Premises (“Major Casualty”), Landlord or Tenant may terminate this Lease effective as of the date of such Major Casualty, by so notifying the other party in writing within fifteen (15) days after the date of such Major Casualty and such termination shall be effective as of the date of such notice.  If this Lease is terminated by Landlord or Tenant pursuant to this Section 7.1 or Section 7.2, (a) Tenant shall pay Landlord (or, as directed by Landlord, its Lender) the amount of all Base Rent and Additional Rent for the remainder of the Term from the proceeds of Tenant’s rental/business interruption insurance, (b) Tenant shall assign to Landlord (or, as directed by Landlord, its Lender) the proceeds, if any, of Tenant’s property insurance required by Schedule B except to the extent that the proceeds relate to personal property that Landlord or a Licensed Designee does not own or acquire at the end of the Term, (c) Tenant shall pay to Landlord the amount equal to the lesser of (i) the deductible under Tenant’s and Landlord’s property insurance policies or (ii) the estimated cost of restoration and repair of the Buildings and the contents owned by Landlord or acquired by Landlord or a Licensed Designee at the end of the Term, (d) Tenant shall refund to Landlord the portion of any Extension Fee paid by Landlord to Tenant for the portion of the Extension Term subsequent to the termination date, (e) such termination shall be effective as of the date such termination notice is given, and (f) neither Tenant nor Landlord shall have any further liability to the other under this Lease except for those rights and obligations that, by their terms, survive the termination of this Lease. 
7.2    Partial Destruction; Restoration.  If the Premises shall be damaged by Casualty but such Casualty is not a Major Casualty or if such Casualty is a Major Casualty and neither Landlord nor Tenant elects to terminate the Lease as provided in Section 7.1, Landlord shall, within sixty (60) days after such Casualty, determine and provide Tenant with its good faith estimate of the time to complete the restoration of the affected portions of the Buildings and Premises (but, for the avoidance of doubt, excluding any Gaming Equipment and other personal property belonging to Tenant) (“Landlord’s Repair Notice”).  If such Casualty constitutes a Material Business Interruption Casualty, then Tenant may terminate this Lease by so notifying Landlord in writing within fifteen (15) days after the date of delivery of Landlord’s Repair Notice.  Further, if the estimated time to complete such repairs will leave six (6) months or less remaining until the end of the Term (as the same may be extended pursuant to the Extension Option), then Landlord or Tenant may terminate this Lease by so notifying the other in writing within fifteen (15) days after the date of delivery of Landlord’s Repair Notice.  
7.3    Repair.  If this Lease is not terminated in accordance with Section 7.1 or Section 7.2, (a) Landlord shall submit a claim for insurance proceeds in relation to such Casualty, and (b) Landlord shall, promptly following its receipt of the insurance proceeds from the insurers, commence and diligently pursue to completion, at its sole cost (including such proceeds), the repair of the affected portions of the Buildings and the Premises (but, for the avoidance of doubt, excluding any Gaming Equipment and other personal property belonging to Tenant) substantially to their condition immediately preceding the Casualty (or in such other manner as Landlord and Tenant may otherwise agree), in which case this Lease shall not terminate, but shall continue in full force and effect, and Rent shall continue to be paid by Tenant either directly by Tenant or from the proceeds of Tenant’s rental/business interruption insurance notwithstanding such restoration of the affected portions of the Premises. Whether or not this Lease is terminated, if a Casualty damages any Owned Gaming Equipment, Tenant shall either, at its option, by the end of the Term (a) restore or replace such damaged Owned Gaming Equipment (which repair or replacement shall be of the same or better quality and functionality as the damaged equipment) using any insurance proceeds that may be received by Tenant (but whether or not such insurance proceeds are sufficient to make such repairs or replacements); or (b) assign to Landlord the proceeds, if any, of Tenant’s property insurance relating to such damaged Owned Gaming Equipment and pay to Landlord (i) the amount of the deductible for such insurance and (ii) to the extent that Tenant has failed to insure such damaged Owned Gaming Equipment for its full replacement value, pay any deficiency to Landlord; provided, however, that if Tenant does not proceed as described in clause (a) above and the cost of the repair or replacement of the damaged Owned Gaming Equipment is less than the amount of the deductible for such insurance, Tenant shall pay to Landlord the amount of the cost of such repair or replacement. 
7.4    Insurance Proceeds.  All insurance proceeds payable under any insurance policies carried by Landlord shall be payable solely to Landlord, and Tenant shall have no interest therein.
7.5    Express Agreement.  This Lease shall be considered an express agreement governing any case of damage to or destruction of the Premises by fire or other Casualty, and any present or future law the purpose of which is to govern the rights of Landlord and Tenant in such circumstances in the absence of express agreement, shall have no application.
ARTICLE 8     
CONDEMNATION
8.1    Complete and Partial Taking.  If (a) the whole of the Buildings are taken by condemnation, eminent domain or in any other manner for any public or quasi-public purpose (each a “Taking”), or (b) any portion of the Buildings and/or the Premises (which may include reasonable means of ingress and egress to and from the Premises or material easements benefitting the Premises) is taken by a Taking such that the remaining area of the Buildings and/or the Premises is not reasonably sufficient for Tenant to conduct Tenant Operations as reasonably determined by Tenant in a written notice to Landlord delivered not later than thirty (30) days after Tenant obtains knowledge of the portion of the Premises that will be subject to such Taking (each of clause (a) and clause (b), a “Complete Taking”), this Lease shall terminate on the earlier to occur of (i) the date that the Term is scheduled to end, and (ii) the later to occur of (A) the date of such Complete Taking, and (B) the date that Tenant’s Operations at the Premises are suspended as a result of the Complete Taking, and the Rent shall be prorated to such date of termination.  The date of any Taking shall be the date possession of the Premises is granted to the applicable Governmental Entity or other Person.  If a Taking occurs that is not a Complete Taking (a “Partial Taking”), this Lease shall be unaffected by such Partial Taking and the Rent shall be equitably adjusted according to the remaining rentable areas of the Premises, taking the loss of any access and material easements benefiting the Premises into account. 
8.2    Proceeds.  In the event of any Taking, partial or whole, all of the proceeds of any award, judgment or settlement payable by the condemning Governmental Entity shall be the exclusive property of Landlord, and Tenant hereby assigns to Landlord any and all of its right, title and interest in any award, judgment or settlement from the condemning Governmental Entity; provided, however, that Tenant shall have the right to claim from the condemning Governmental Entity such compensation as may be recoverable by Tenant in its own right for relocation expenses, damage to or loss of Tenant’s leasehold estate in any Premises and damage to Tenant’s personal property, and/or any other separate damages that Tenant may suffer if a separate award for such items is made to Tenant.  In pursuing their respective rights to such awards, Landlord and Tenant will reasonably cooperate with one another toward the aim of maximizing each party’s recovery of the award to which it would be entitled as a matter of applicable law.  Notwithstanding anything herein to the contrary, in the event of any temporary requisition of the use or occupancy of the Premises or any part thereof by any Governmental Entity, Tenant shall retain any award or payment therefor, whether the same shall be paid or payable in respect of Tenant’s leasehold interest hereunder or otherwise, but there shall be no abatement or reduction of the Rent due hereunder.
8.3    Landlord’s Restoration Obligation.  In the event of a Partial Taking, Landlord shall, at its sole cost, promptly commence and diligently pursue to completion the restoration or repair to the remaining portion of the Premises necessary for the Premises to be returned as nearly as practicable to their condition prior to the Partial Taking, including, without limitation, exercising its commercially diligent efforts to secure alternative appurtenant easements benefiting the Premises as may be necessary, all to Tenant’s reasonable satisfaction but excluding, for the avoidance of doubt, the restoration or repair of any Gaming Equipment and other personal property belonging to Tenant.
ARTICLE 9     
ASSIGNMENT AND SUBLETTING
9.1    Consent Required.  Notwithstanding any references herein to successors, assigns, sub-tenants and licensees, Tenant shall not, directly or indirectly, assign or in any manner transfer, lease, sublease, mortgage, pledge, hypothecate or otherwise encumber (a) all or any portion of this Lease, (b) all or any right to the Land, the Buildings and/or any appurtenances related thereto, (c) all or any portion of the Owned Gaming Equipment (other than (i) pursuant to the Existing Loan (as defined in the Purchase Agreement) and (ii) Tenant may, in Tenant’s discretion, repair and/or replace such equipment with the same or better quality equipment in the ordinary course of Tenant Operations) and/or (d) any equity interest in Tenant except for a Permitted Equity Transfer (each a “Transfer”) without in each case the prior written consent of Landlord and, to the extent required by the terms of the Loan Documents, Designated Lender, each such consent shall not be unreasonably withheld, conditioned or delayed. Notwithstanding anything to the contrary contained herein, Tenant may, without Landlord’s or Designated Lender’s prior written consent (i) after written notice to Landlord and Designated Lender, assign, sublease or license this Lease or any portion of the Premises to an Affiliate of CEC; (ii) assign, sublease, license or otherwise enter into new Subleases for space, and amend existing Subleases for space, within the Premises in the ordinary course of business, including for retail, concession, advertising, dining, entertainment or other non-lodging purposes; and (iii) assign, sublease or license this Lease or any portion of the Premises, or otherwise enter into agreements with respect to the Premises, in connection with any third-party branding or with retaining a third-party operator of the Premises or any portion thereof; provided, however, that in each case of clauses (i), (ii) and (iii) above, (1) Tenant is not being released from its obligations hereunder, (2) the Guaranty remains in full force and effect and, if requested by Landlord, Guarantor reaffirms its obligations under the Guaranty in writing at the time of any such transaction, and (3) any such new Subleases or amendments of existing Subleases (v) shall not impose any liability, including any termination fee or penalty, on Landlord, any Lender or any of their respective Affiliates unless Landlord has requested any such Subleases to be extended beyond the end of the Term pursuant to Section 5.10 and such Subtenants have agreed to such extension, (w) shall not include an option to purchase, right of first refusal to purchase or similar preferential purchase rights for the Subtenant, (x) shall not permit the Subtenant to record the Sublease or a memorandum thereof, (y) shall be subject and subordinate in all respects to the rights and remedies of Landlord under this Lease (and shall contain a provision to such effect within any such agreement), and (z) shall expressly provide that any such new Sublease or amendments of existing Subleases shall automatically terminate as to its space at the Premises at the end of the Term unless Landlord has requested any such Subleases to be extended beyond the end of the Term pursuant to Section 5.10 and such Subtenants have agreed to such extension.  Notwithstanding anything to the contrary contained herein, upon the execution of this Lease, all Subleases shall automatically become subleases, which shall be subject to and subordinate to this Lease.
9.2    Request for Transfer.  With respect to any Transfer requiring Landlord’s and, if applicable, Designated Lender’s consent, Tenant shall make a written request for consent from Landlord and, if applicable, Designated Lender not less than fifteen (15) days’ prior to the proposed Transfer, which request shall be delivered to Landlord and, if applicable, Designated Lender together with (i) a true and complete copy of the proposed instrument(s) of the Transfer, and (ii) such other information and documents with respect to such Transfer as Landlord and, if applicable, Designated Lender may reasonably request.  In the event that Landlord or, if applicable, Designated Lender fails to respond in writing within an additional fifteen (15) days after a second written request for consent (which second request contains the following legend in all capital letters at the top and is sent via overnight courier to the notice address of Landlord and if provided by Landlord, Designated Lender: THIS IS A SECOND REQUEST FOR CONSENT AND YOUR APPROVAL WILL BE DEEMED GIVEN IF YOU DO NOT RESPOND BY [INSERT DATE THAT IS 15 DAYS LATER]), such request shall be deemed such Person’s consent to such request.  Tenant shall reimburse Landlord and Designated Lender for their actual reasonable out-of-pocket costs and expenses (including reasonable out-of-pocket legal expenses) incurred in connection with any such Transfer requiring Landlord’s and, if applicable, Designated Lender’s consent (whether or not such consent is granted).
ARTICLE 10     
SUBORDINATION AND LANDLORD FINANCING
10.1    Subordination of Lease.  This Lease shall be subject and subordinate in all respects to all Loan Documents now or hereafter in effect; provided, however, that the subjection and subordination of this Lease and Tenant’s leasehold interest hereunder to any Loan Documents shall be conditioned upon the execution and delivery by Designated Lender, one Lender, or one agent of the Lenders, under the Junior Mezzanine Loan Documents and Tenant of a subordination, non-disturbance and attornment agreement (an “SNDA”) substantially in the form attached hereto as Schedule E.  At the request of Tenant and with Tenant agreeing to reimburse Landlord, Designated Lender and one Lender, or one agent of the Lenders, under the Junior Mezzanine Loan Documents for their actual reasonable out-of-pocket costs and expenses (including its reasonable out-of-pocket legal expenses) incurred in connection therewith (whether or not such agreements are executed), Landlord, Designated Lender and one Lender, or one agent of the Lenders, under the Junior Mezzanine Loan Documents will provide to Subtenants of Tenant who are subleasing space on commercially reasonable terms, a recognition, non-disturbance and attornment agreement in commercially reasonable form and otherwise acceptable to Landlord, Designated Lender, one Lender, or one agent of the Lenders, under the Junior Mezzanine Loan Documents and Tenant, providing, among other things, that Landlord and Lenders will not disturb such Subtenant’s use and possession of its subleased premises upon the termination of this Lease other than due to the occurrence of the Expiration Date or upon the earlier to occur of (a) the foreclosure of the Mortgage or the recording of a deed in lieu thereof, (b) the foreclosure of the collateral pledged under the Pledge Agreement or the acceptance of an assignment in lieu thereof or (c) to the extent affecting such Subtenant’s use and possession, any similar exercise of remedies by a Lender under the Junior Mezzanine Loan Documents.  Nothing in the foregoing however shall prevent or limit the right of Landlord, or any successor landlord (including any Lender), to enforce the terms of such Sublease upon any default by the Subtenant thereunder.
10.2    Landlord Financing.  Without the consent of Tenant, Landlord may from time to time, directly or indirectly, create or otherwise cause to exist any Mortgage upon the Premises or any portion thereof or interest therein or any Pledge Agreement.  If, in connection with obtaining any financing for the Premises or any portion thereof or interest therein, a Lender or prospective lender shall request reasonable cooperation from Tenant, Tenant shall provide the same at no cost or expense to Tenant, it being understood and agreed that Landlord shall be required to, within thirty (30) days of demand, reimburse Tenant for the reasonable out-of-pocket costs and expenses so incurred by Tenant, including, but not limited to, its reasonable out-of-pocket legal fees.  Such reimbursement obligation shall survive the expiration or earlier termination of this Lease.
10.3    Attornment. If Landlord’s interest in the Premises or any portion thereof or interest therein is sold, conveyed or terminated upon the exercise of any remedy provided for in any Loan Documents (or in lieu of such exercise), or otherwise by operation of law, at the request and option of the new owner, Tenant shall attorn to and recognize the new owner as Tenant’s “landlord” under this Lease or enter into a new lease substantially in the form of this Lease with the new owner and, to the extent applicable, subject to the provisions set forth in the SNDA.
10.4    Tenant Cooperation.  Tenant agrees to cooperate with the reasonable requests of Landlord and its Lender in connection with Landlord’s compliance of its obligations under the Loan Documents, provided that such cooperation shall not (a) obligate Tenant to expend any funds unless Landlord agrees to reimburse Tenant for the same, (b) increase Tenant’s non-monetary obligations under this Lease in any material respect, or (c) diminish Tenant’s rights under this Lease in any material respect. Such reimbursement obligation shall survive the expiration or earlier termination of this Lease.
ARTICLE 11     
INDEMNIFICATION OBLIGATIONS
11.1    Indemnification.
(a)    Tenant shall defend, protect, indemnify and save harmless Landlord, its Affiliates and their respective partners, members, managers, officers, stockholders, directors and employees (each a “Landlord Indemnified Party” and collectively, “Landlord Indemnified Parties”) from and against, and shall reimburse such Landlord Indemnified Parties for, any and all Losses by reason of or in connection with any of the following, except to the extent caused by the gross negligence or willful misconduct of Landlord or any of its agents, servants, contractors or employees (collectively with Landlord, the “Landlord Parties”): (i) the use, possession, occupation, operation, maintenance or management of the Premises, or any part thereof, during the Term; (ii) any act on the part of Tenant or any of its agents, servants, contractors, or employees (collectively with Tenant, the “Tenant Parties”) during the Term; (iii) any accident, injury, death or damage to any person or property occurring in, on or about the Premises, or any part thereof, during the Term; (iv) any failure on the part of Tenant to perform or comply in all material respects with any of the agreements, obligations, covenants, conditions or limitations contained in this Lease on its part to be performed or complied with, or any representations or warranty made by Tenant hereunder is false in any material respect; (v) the employment of Tenant Employees at all times prior to the expiration of the Term (including, without limitation, by reason of or in connection with the sale of the Premises to Landlord pursuant to the Purchase Agreement) or, if Landlord makes the Operating Business Election, then through any later date of Tenant’s transfer of such employees to Landlord (or its Affiliates), except as otherwise provided in Section 4 of the Operating Business Schedule; (vi) any salary continuation payments or employee severance or separation pay to Tenant Employees related to the transfer of the Premises to Landlord on the Commencement Date or the termination of Lease; and/or (vii) any withdrawal liability under any Employee Benefit Plan, including, without limitation, any Multiemployer Pension Plan, relating to or triggered by the transactions contemplated by the Purchase Agreement or this Lease, including, to the extent applicable, the Operating Business Schedule. 
(b)    Landlord shall defend, protect, indemnify and save harmless Tenant, its Affiliates and their respective partners, members, managers, officers, stockholders, directors and employees (each a “Tenant Indemnified Party” and collectively, “Tenant Indemnified Parties”) from and against, and shall reimburse such parties for, any and all Losses by reason of or in connection with any of the following, except to the extent caused by the gross negligence or willful misconduct of any of the Tenant Parties:  (i) any work, activity or other things done or performed by or at the direction of Landlord in, on or about the Premises; (ii) any act on the part of any of the Landlord Parties; (iii) the sale, financing or development of the Development Parcel; (iv) any failure on the part of Landlord to perform or comply in all material respects with any of the agreements, obligations, covenants, conditions or limitations contained in this Lease on its part to be performed or complied with, or any representations or warranties made by Landlord hereunder is false in any material respect; and/or (v) after the Expiration Date, Landlord’s (1) sale, lease, closure, or redevelopment of the Premises; or (2) transfer, layoff, hiring or termination of employees.
(c)    A party to be indemnified hereunder (each an “Indemnified Party”) shall give prompt written notice to the indemnifying party (each an “Indemnifying Party”) of the existence of any claim for which it seeks indemnification hereunder (each a “Claim”), but delay in providing such notice shall not relieve the Indemnifying Party of its indemnification obligations, except to the extent such delay materially prejudiced the Indemnifying Party’s ability to defend such Claim.  Upon receipt of such notice, the Indemnifying Party shall, at its sole cost and expense, resist and defend such Claim by counsel to be selected by the Indemnifying Party but otherwise satisfactory to such Indemnified Party in its reasonable discretion.  The Indemnifying Party or its counsel shall keep the Indemnified Party fully apprised at all times of the status of such defense.  If the Indemnifying Party shall fail to defend such Claim, such Indemnified Party may retain its own attorneys to defend or assist in defending any such Claim, and the Indemnifying Party shall pay the actual and reasonable fees and disbursements of such attorneys.  The Indemnifying Party shall not enter into any settlement of a Claim which would impose a monetary liability on, or require an admission of liability, fault or other responsibility by, any Indemnified Party without the written consent of such Indemnified Party.  Any insurance proceeds actually received by an Indemnified Party shall be credited against the indemnification otherwise to be provided herein.  The terms and provisions of this Article 11 shall not in any way be affected by the absence of insurance covering such occurrence or claim or by the failure or refusal of any insurance company to perform any obligation on its part.  The provisions of this Article 11 shall survive the expiration or earlier termination of this Lease.  Nothing contained herein shall be construed to create a benefit for a third party except for other Indemnified Parties.
ARTICLE 12     
DEFAULT; REMEDIES
12.1    Tenant’s Event of Default.  Each of the following shall be deemed an event of default and a breach of this Lease by Tenant (an “Event of Default”):
(a)    The failure of Tenant to pay (i) any portion of any installment of Base Rent due from Tenant under this Lease for seven (7) days after written notice by Landlord to Tenant describing such default or (ii) any portion of any installment of Additional Rent due from Tenant to Landlord under this Lease for thirty (30) days after written notice by Landlord to Tenant describing such default;
(b)    Tenant makes or causes a Transfer in violation of Article 9 of this Lease that, unless such Transfer results in a Change of Control of Tenant prohibited by Article 9 (in which case no notice or cure period shall apply), continues for ten (10) days after written notice from Landlord;
(c)    The failure of Tenant to comply with or observe any of the other provisions, agreements, conditions, covenants or terms contained in this Lease for thirty (30) days after written notice by Landlord to Tenant describing such default with reasonable specificity, or if such default is a non-monetary default and of such a nature that it cannot be completely remedied within said thirty (30) day period, the failure of Tenant to commence the cure of such default within such thirty (30) day period and thereafter diligently prosecutes such cure to completion;
(d)    (i) Tenant or Guarantor shall commence any case, proceeding or other action (A) under any existing or future Legal Requirement relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with respect to Tenant or Guarantor, or seeking to adjudicate Tenant or Guarantor bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, liquidation, dissolution, composition or other relief with respect to Tenant or Guarantor or Tenant’s or Guarantor’s debts, or (B) seeking appointment of a receiver, trustee, custodian or other similar official for Tenant or Guarantor or for all or any substantial part of their respective property; or (ii) Tenant or Guarantor shall become insolvent or make a general assignment for the benefit of their respective creditors or shall make a transfer in fraud of creditors; or (iii) there shall be commenced against Tenant or Guarantor any case, proceeding or other action of a nature referred to in clause (i) above (including involuntary bankruptcy) or seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of Tenant’s or Guarantor’s property, which case, proceeding or other action (A) results in the entry of an order for relief or (B) remains undismissed, undischarged or unbonded for a period of ninety (90) days; or (iv) Tenant or Guarantor shall take any action consenting to or approving of any of the acts set forth in clause (i) or (ii) above that it does not revoke or withdraw within ninety (90) days thereof; or (v) Tenant or Guarantor shall admit in writing its inability to generally pay its debts as they become due; and
(e)    Any representation or warranty made by Tenant herein or in any certificate, or other instrument, agreement or document furnished to Landlord shall have been materially false or misleading in any material respect as of the date such representation or warranty was made and if susceptible to cure is not cured within the time periods set forth in clause (b) of this Section 12.1.
12.2    Landlord Remedies.  Upon the occurrence of an Event of Default, Landlord may, at any time thereafter, without limiting Landlord in the exercise of any right or remedy at law or in equity or under this Lease that Landlord may have by reason of such Event of Default, at its option pursue any one or more of the following non-exclusive remedies without any further notice or demand whatsoever, in each case, to the extent permitted by applicable law:
(a)    Landlord may terminate the Lease, in which case Tenant shall immediately surrender possession of the Premises to Landlord, and Landlord shall recover from Tenant all damages actually incurred by Landlord by reason of such Event of Default including, but not limited to:  (i) the cost of recovering possession of the Premises; (ii) expenses of reletting, including repairs, renovation and alteration of the Premises (exclusive of the Contemplated Redevelopment); (iii) reasonable attorneys’ fees; (iv) the unpaid Rent which had been earned at the time of termination; (v) the amount by which the unpaid Rent for the balance of the Term after the time of the termination exceeds the amount of rent for the same period that Landlord actually receives (less all amounts incurred by Landlord to relet the Premises and less all amounts listed in Section 12.2(a)(i)-(iv) that have not been paid by Tenant); and (vi) any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom.  Landlord shall have no duty to mitigate any damages it may incur as a result of any default of Tenant under this Lease except for any non-waivable duty to mitigate damages that Landlord might have under NRS 118.175.
(b)    Landlord may terminate Tenant’s right to possession and reenter and take possession of the Premises or any part thereof, without demand or notice, and repossess the same and expel Tenant and any party claiming by, under or through Tenant, and remove the effects of both using such force for such purposes as may be necessary, without being liable for prosecution on account thereof or being deemed guilty of any manner of trespass, and without prejudice to any remedies for arrears of Rent or right to bring any proceeding for breach of covenants or conditions.  No such reentry or taking possession of the Premises by Landlord shall be construed as an election by Landlord to terminate this Lease unless a written notice of such intention is given to Tenant.  After recovering possession of the Premises, Landlord shall use commercially reasonable efforts to relet the Premises, or any part thereof, for the account of Tenant for the balance of the Term, it being acknowledged and agreed by Tenant that (i) Landlord intends to undertake its Contemplated Redevelopment of the Premises promptly after the scheduled end of the Term and it shall have no obligation whatsoever to seek to relet the Premises for a period of time that extends beyond such date, (ii) the commercial real estate market for a reletting of the Premises on a short-term basis will make it extremely difficult for Landlord to relet the Premises, and (iii) no assurance can be given that, under the circumstances, any reletting will occur or the rent for such reletting will be equal to or greater than the Rent payable by Tenant under this Lease.  Landlord may make such repairs, alterations or improvements as Landlord may consider reasonably appropriate to accomplish such reletting (exclusive of the Contemplated Redevelopment), and Tenant shall reimburse Landlord upon demand for all reasonable costs and expenses (including, but not limited to, the costs of such repairs, alterations or improvements, leasing commissions and attorneys’ fees) which Landlord may incur in connection with such reletting (exclusive of the Contemplated Redevelopment).  Landlord may collect and receive the rents for such reletting but Landlord shall in no way be responsible or liable for any failure to relet the Premises, or any part thereof, or for any failure to collect any rent due upon such reletting.  Notwithstanding Landlord’s recovery of possession of the Premises, Tenant shall continue to pay on the dates herein specified, the Rent which would be payable hereunder if such repossession had not occurred, less a credit for the net amounts, if any, actually received by Landlord through any reletting of the Premises.
(c)    Landlord, in its discretion, may continue to enforce all of Landlord’s rights and remedies under this Lease, including the right to recover Rent as it becomes due under this Lease.  Landlord shall have the right, but shall not be obligated, to cure any Event of Default by Tenant, and any sums expended by Landlord in order to cure an Event of Default shall be due and payable within ten (10) days of written demand from Landlord.
(d)    Suit or suits for the recovery of the amounts and damages set forth herein may be brought by Landlord, from time to time, at Landlord’s election; and nothing herein shall be deemed to require Landlord to await the date that this Lease or the Term hereof would have expired had there been no such Event of Default by Tenant, or no such termination, as the case may be.  Each right and remedy provided for in this Lease shall be cumulative and shall be in addition to every other right or remedy provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise, including, but not limited to, suits for injunctive relief and specific performance.  The exercise or beginning of the exercise by Landlord of any one or more of the rights or remedies provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by Landlord of any or all other rights or remedies provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise.
(e)     Suit or suits for the recovery of the amounts and damages set forth herein may be brought by Landlord, from time to time, at Landlord’s election, against Guarantor under the Guaranty and without first proceeding against Tenant and nothing herein shall be deemed to require Landlord to await the date that this Lease or the Term hereof would have expired had there been no such Event of Default by Tenant, or no such termination, as the case may be, and upon any such Event of Default, Landlord shall have the right to immediately proceed against Guarantor.
12.3    No Waiver .  No failure by Landlord to insist upon the strict performance of any covenant, agreement, term or condition of this Lease or to exercise any right or remedy consequent upon an Event of Default, or receipt or acceptance of Rent with knowledge of or during the continuance of any such Event of Default, shall constitute a waiver or relinquishment of any such Event of Default or of such covenant, agreement, term or condition.  No covenant, agreement, term or condition of this Lease to be performed or complied with by Tenant, and no breach thereof, shall be waived, altered or modified except by a written instrument executed by Landlord.  No waiver of any breach shall affect or alter this Lease, but each and every covenant, agreement, term and condition of this Lease shall continue in full force and effect with respect to any other then existing or subsequent breach thereof.
ARTICLE 13     
ESTOPPEL CERTIFICATE
Each party agrees that it shall, at any time and from time to time, but no more than quarterly, upon not less than ten (10) days’ prior notice by the other party, execute, acknowledge and deliver to the requesting party a statement in writing certifying (a) that this Lease is unmodified and in full force and effect (or if there have been any modifications, that this Lease is in full force and effect as modified and stating the modifications), (b) the Rent payable and the dates to which the Rent has been paid, (c) the amount of Rent actually paid on the last date such Rent was paid, (d) that the address for notices to be sent to such party is as set forth in this Lease, (e) whether to such party’s actual knowledge, it or the other party is in default in keeping, observing or performing any term, covenant, agreement, provision, condition or limitation contained in this Lease and, if in default, specifying each default, and (f) the Commencement Date and Expiration Date, and any other matters reasonably requested by the requesting party, it being intended that any such statement delivered pursuant to this Article 13 may be relied upon by the requesting party, any purchaser and any Lender.
ARTICLE 14     
QUIET ENJOYMENT
So long as no Event of Default has occurred and is continuing, Tenant shall and may at all times during the Term peaceably and quietly have, hold and enjoy the Premises without hindrance of and from any Person claiming by, through or under Landlord, subject, nevertheless, to the terms and provisions of this Lease.
ARTICLE 15     
SURRENDER
15.1    Cooperation.  During the last month of the Term, Tenant shall reasonably cooperate with Landlord to transition the Premises to Landlord at the end of the Term, including providing reasonable assistance to Landlord as necessary for Landlord to establish utilities for the Premises in its name.
15.2    Notice as to Delivery of Premises.  No later than twelve (12) months prior to the end of the Term, Landlord shall provide notice to Tenant (the “Premises Delivery Notice”) as to whether Tenant is to deliver to Landlord the Premises at the end of the Term as a closed business (the “Closed Business”) or as an operating business (the “Operating Business”). If Landlord elects for the Premises to be delivered as an Operating Business, each of Landlord and Tenant shall be bound by the provisions set forth on the attached Schedule H (the “Operating Business Schedule”) and Section 15.7. For the avoidance of doubt, if Landlord elects for the Premises to be delivered as a Closed Business, then the provisions of the Operating Business Schedule and Section 15.7 shall not apply.  
15.3    Tenant’s Surrender of the Premises.  Regardless of Landlord’s election in Section 15.2, Tenant shall, on the last day of the Term, (a) quit and surrender to Landlord the Premises in a similar level of condition and repair as on the Commencement Date, excepting reasonable wear and tear, casualty and condemnation, De-Branding Actions and any Work which is considered (i) the maintenance, repair and replacement of all FF&E in the Premises, and/or (ii) a capital expenditure, repair, improvement, equipment or replacement under GAAP; and (b) deliver, to the extent in Tenant’s possession, all keys, security codes, combinations and other information or equipment necessary to gain access to all portions of the Premises to a Person at the Premises designated in writing by Landlord.
15.4    Closed Business.  If Landlord elects for the Premises to be delivered as a Closed Business:(a)     Tenant shall wind down and cease all Tenant Operations at the Premises in a manner as Tenant determines in its sole discretion consistent with applicable Collective Bargaining Agreements, except to the extent Landlord has elected to extend any Subject Contracts pursuant to the provisions of Section 5.10 and the same are in fact extended on or before the end of the Term and are assumed by Landlord pursuant to the provisions of Section 15.4(f).
(b)     On the last day of the Term, Tenant shall (i) remove or cause to be removed from the Premises all Gaming Equipment and other personal property belonging to Tenant, in each case, to the extent not transferred to Landlord or a Licensed Designee pursuant to the provisions of Section 15.4(c) or Section 15.4(d); and (ii) deliver the Premises free and clear of any and all Service Contracts, Entertainment Contracts, Subleases and other encumbrances other than Permitted Exceptions, except (y) for the Culinary CBA which was assumed by Landlord as of the Commencement Date and (z) to the extent Landlord has elected to extend any Subject Contracts pursuant to the provisions of Section 5.10 and the same are in fact extended on or before the end of the Term and are assumed by Landlord pursuant to the provisions of Section 15.4(f).  
(c)    On the last day of the Term, subject to the receipt of all applicable Gaming Licenses to sell and acquire the Owned Gaming Equipment, Tenant shall (i) convey to the Licensed Designee all of Tenant’s right, title and interest in and to the Owned Gaming Equipment by a bill of sale, in substantially the form of the bill of sale delivered by Tenant in connection with the Purchase Agreement, and (ii) deliver such Owned Gaming Equipment to the Licensed Designee at the Premises.
(d)     On the last day of the Term, subject to the receipt of all licenses and permits, and the making of all filing and notices, in each case, required under applicable Legal Requirements, including, without limitation, liquor licenses that Landlord or its Licensed Designee may be required to obtain under applicable Legal Requirements, Tenant shall (i) convey to Landlord or its Licensed Designee all of Tenant’s right, title and interest in and to the Transferred Personal Property by a bill of sale, in substantially the form of the bill of sale delivered by Tenant in connection with the Purchase Agreement, and (ii) deliver such Transferred Personal Property to Landlord or its Licensed Designee at the Premises; provided, that, to the extent any such licenses, permits, filings and notices have not been received by Landlord or its Licensed Designee, only the Transferred Personal Property for which such licenses, permits, filings and/or notices have been obtained or made by Landlord or its Licensed Designee, along with any Transferred Personal Property for which no such items are required, will be conveyed on the last day of the Term.
(e)    On or prior to the last day of the Term, Tenant (i) shall either transfer from the Premises, or terminate the employment or services of, all Tenant Employees, and (ii) shall issue any notifications with respect to such termination or transfer required under the provisions of any Collective Bargaining Agreement, including under Article 35 of the Culinary CBA, and all Legal Requirements, including the issuance of any WARN Act notifications.  Tenant shall (as between Tenant and Landlord) be responsible for paying to Tenant Employees all compensation, separation or severance pay and employment benefits to which such Tenant Employees are entitled in accordance with and pursuant to applicable Legal Requirements and Collective Bargaining Agreements and the terms of the applicable benefit plans, programs or arrangements.  The provisions of this Section 15.4(e) are for the benefit of Tenant and Landlord only, and no employee of Tenant or any other Person shall have any rights hereunder.  Nothing herein express or implied shall confer upon any employee of Tenant or any other Person (including any Tenant Employee), or any legal representatives or beneficiaries thereof, any rights or remedies, including any right to employment or continued employment.  Following the termination or transfer of Tenant’s Employees, Landlord shall have sole responsibility for and control over the terms and conditions of employment for any Persons performing services for Landlord.
(f)    To the extent Landlord has elected to extend any Subject Contracts pursuant to the provisions of Section 5.10 and the applicable third parties are willing to extend such contracts, then on the last day of the Term (i) (A) Landlord and Tenant shall execute and deliver a mutually acceptable assignment and assumption agreement whereby Tenant shall assign such contracts to Landlord, and Landlord shall assume the obligations of Tenant arising thereunder from and after the Expiration Date and (B) Tenant shall deliver notice letters jointly approved by Landlord and Tenant to the applicable third parties informing such party of the assignment of the applicable contract; and (ii) all income and expenses pursuant to such contracts shall be prorated between Landlord and Tenant as of the Expiration Date and such pro-rations shall be set forth on a closing statement.  Tenant shall receive a credit on the closing statement for the amount of any prepaid rents or other amounts related to the period from and after the Expiration Date and security deposits and other deposits previously paid by Tenant pursuant to such contracts, provided that such credit shall be reduced by any such rents, amounts or deposits paid to and collected by Tenant pursuant to such contracts which relate to the period from and after the Expiration Date.  The net amount payable to Landlord or Tenant, as applicable, pursuant to the closing statement shall be paid within three (3) Business Days following the Expiration Date.  Provided that Tenant has paid Base Rent in full and all other monetary obligations pursuant to this Lease, any amounts received by Landlord following the Expiration Date pursuant to such contracts related to any period prior to the Expiration Date shall be promptly paid to Tenant.  Provided that Landlord has paid any and all monetary obligations to Tenant pursuant to this Lease, any amounts received by Tenant following the Expiration Date pursuant to such contracts related to any period after the Expiration Date shall be promptly paid to Landlord. The payment obligations under this paragraph shall survive the Expiration Date.
(g)     Landlord shall (i) pay, or cause to be paid, to the applicable Governmental Entity all sales, use, transfer and other such taxes and fees incurred or assessed in connection with the transfer of all assets it or the Licensed Designee acquires pursuant to the provisions of this Section 15.4; and (ii) prepare and file with the applicable Governmental Entity all tax returns, reports, documents, declarations or filings with respect to such taxes and fees.  The provisions of  this paragraph shall survive the Expiration Date.
(h)    Landlord and Tenant hereby agree that the assets transferred pursuant to the provisions of this Section 15.4 are being transferred in their present “AS IS, WHERE IS” CONDITION “WITH ALL FAULTS” and are subject in all respects to the provisions of Section 5.1 and Section 5.2 of the Purchase Agreement (which provisions are incorporated herein by this reference) as if such assets were specifically referenced therein and as if Landlord constituted the Buyer thereunder.  The provisions of this paragraph shall survive the Expiration Date.
15.5    Failure to Consummate Operating Business Transaction.  If Landlord elects for the Premises to be delivered as an Operating Business and fails to consummate the transaction contemplated by the Operating Business Schedule by the end of the Term, then (i) Landlord will be deemed to have elected for the Premises to be delivered as a Closed Business such that the provisions of Section 15.4 shall apply and (ii) at Tenant’s option, the Term may be extended for six (6) months to allow for Tenant’s orderly winding up of Tenant Operations, upon written notice (a “Wind Down Notice”) to Landlord from Tenant delivered prior to the expiration of the Term and, if Tenant elects to extend following Landlord’s failure to consummate the transaction contemplated by the Operating Business Schedule, Landlord shall pay Tenant, via wire transfer of immediately available funds to an account designated by Tenant, a one-time payment in the amount of Ten Million Dollars ($10,000,000.00), within fifteen (15) Business Days of the Base Term Expiration Date, or the Extension Term Expiration Date, as applicable.  In the event that Landlord fails to timely pay Tenant any portion of such payment, Tenant may offset the amount of such fee from its next payments of monthly Rent. If so extended, the Term shall be extended to the date that is six (6) months after the Base Term Expiration Date or the Extension Term Expiration Date, as applicable, and Tenant shall continue to lease the Premises pursuant to the terms of this Lease, excluding the provisions of Section 5.10, provided that Tenant’s winding up of Tenant Operations shall be done consistent with applicable Collective Bargaining Agreements. For the avoidance of doubt, no extension by Tenant pursuant to this Section 15.5 shall constitute a holdover pursuant to Section 15.6.
15.6    Holdover.  Landlord has advised Tenant that if possession of the Premises is not surrendered to Landlord upon the expiration or sooner termination of the Term, such holdover may likely expose Landlord to a risk of reduction or loss of Landlord’s committed financing for the Contemplated Redevelopment and possibly other damages (although Landlord acknowledges that there are circumstances in which Landlord may delay or not undertake the Contemplated Redevelopment). As such, Tenant has agreed that if it does not surrender the Premises to Landlord upon the expiration or sooner termination of the Term, (a) Tenant shall pay to Landlord a sum equal to 3.0 times the monthly Base Rent that was payable under this Lease during the last month of the Term for thirty (30) days of such holdover, (b) thereafter, if Tenant is still in possession of the Premises, Tenant shall continue to pay Landlord a sum equal to 3.0 times the monthly Base Rent that was payable under this Lease during the last month of the Term for each additional thirty (30) days of such holdover, and (c) Landlord shall, in addition to any and all rights and remedies that Landlord may have under this Lease, at law or in equity, immediately upon such holdover, have the right to commence eviction of Tenant from the Premises by providing written notice under applicable provisions of Legal Requirements which may include NRS 40.250 (unlawful detainer for possession after expiration of term, provided that Landlord acknowledges that it will provide no less than thirty (30) days’ notice for such unlawful detainer under NRS 40.250), NRS 40.2512 (unlawful detainer for possession after default in payment of rent) or Section 1 of Senate Bill 151, 80th Session of the Nevada Legislature (summary eviction for failure to pay rent), and Tenant shall reimburse Landlord for all of Landlord’s actual, reasonable and documented out-of-pocket costs and expenses incurred in connection with any eviction or unlawful detainer proceeding. Nothing in this Section 15.6 shall be construed as an authorization for Tenant to holdover after the expiration of the Term.  This provision shall survive the expiration or earlier termination of this Lease. 
15.7    Licensing Matters.  If Landlord intends to make the Operating Business Election, Landlord and all of its applicable Affiliates and representatives (such parties, “Landlord Proposed Licensed Parties”) shall make, no later than (i) fifteen (15) months prior to the Base Term Expiration Date or (ii) if Landlord has exercised the Extension Option in accordance with Section 1.2, no later than fifteen (15) months prior to the Extension Term Expiration Date, all applications and filings with the applicable Governmental Entities as necessary to obtain all Gaming Approvals and Liquor Approvals (each as defined in the Operating Business Schedule).  Landlord shall promptly provide to Tenant evidence of the making of all such applications and filings with the applicable Governmental Entities.  Landlord shall, and shall cause the other Landlord Proposed Licensed Parties to, act diligently and promptly to pursue such Gaming Approvals and Liquor Approvals. Landlord shall use commercially reasonable efforts to schedule and attend any hearings or meetings with the applicable Governmental Entities to obtain the Gaming Approvals and Liquor Approvals as promptly as possible.  To the extent practicable, and subject to applicable Legal Requirements, each party will consult with the other party with regard to the exchange of information relating to Landlord Proposed Licensed Parties or Tenant, as the case may be, which appear in any filing made with, or written materials submitted to, the Governmental Entities in connection with the transactions contemplated by the Operating Business Schedule.  Without limiting the foregoing, Landlord and Tenant will promptly notify the other party of the receipt of comments or requests or other communications from any Governmental Entity relating to the Gaming Approvals or Liquor Approvals, and shall supply the other party with copies of all correspondence between the notifying parties or any of its representatives and the applicable Governmental Entities with respect to the Gaming Approvals or Liquor Approvals (with any competitively sensitive information or personal information of individual applicants being provided on a redacted basis only).  Notwithstanding anything in this Section to the contrary, in no event will Landlord or Tenant be entitled to review (a) confidential information regarding any individual who is an employee, officer, director, member, manager or investor of Landlord Proposed Licensed Parties or Tenant, as applicable, or (b) the other party’s confidential business records, plans, uses or strategies or marketing strategies for the Premises.  Landlord and Tenant shall promptly notify each other upon receiving any communication from a Governmental Entity regarding hearings before Governmental Entities related to the Gaming Approvals or Liquor Approvals or which causes such party to reasonably believe that there is a reasonable likelihood that such Gaming Approvals or Liquor Approvals will not be obtained or that the receipt of any such Gaming Approvals or Liquor Approvals will be materially delayed (a “Likely Disapproval/Delay”).  In the event that a Likely Disapproval/Delay arises six (6) months prior to the Expiration Date, Landlord shall have the right to elect to retain a Licensed Third Party Designee and cause such Licensed Third Party Designee to apply for and obtain such Gaming Approvals and/or Liquor Approvals that are the subject of the Likely Disapproval/Delay no later than thirty (30) days prior to the Expiration Date, in which event such Licensed Third Party Designee shall become a Landlord Proposed Licensed Party subject to the above provisions of this Section 15.7.
ARTICLE 16     
ACCESS
16.1    Landlord’s Access.  Subject to compliance with the Gaming Laws, Landlord shall at all times during the Term have the right and privilege to enter the Premises upon prior notice to Tenant during business hours and in compliance with reasonable security requirements of Tenant (except in the case of an emergency to life or property) for the purpose of (a) inspecting the same, (b) showing the same to prospective purchasers, new tenants or lenders thereof or (c) permitting Landlord, its architects, contractors, expediters, consultants and other designees to plan and/or prepare for the Contemplated Redevelopment so long as such planning and preparing does not interfere with Tenant Operations in any material respect; provided (i) Tenant may accompany such Persons and all such inspections and shall provide personnel to accompany Landlord and such Persons if Tenant requires to accompany them, (ii) showings shall be performed in such a manner so as not to disturb or interfere with Tenant Operations in any material respect, and (iii) Landlord shall be liable for all actual out-of-pocket damages or injuries caused by the conduct or action of Landlord or any of its agents, servants, contractors, subcontractors or employees.  Landlord shall also have the right and privilege at all times during the Term to post reasonable notices of non-responsibility for work performed by or on behalf of Tenant.
16.2    Access for Repairs and Alterations.  Landlord shall at all times during the Term have the right to enter the Premises or any part thereof for the purpose of making such repairs as Landlord otherwise deems necessary or advisable following the failure of Tenant to make any such repairs which Tenant is required to make pursuant to the terms hereof beyond any applicable notice and cure period, but such right of access shall not be construed as obligating Landlord to make any repairs to the Premises or as obligating Landlord to make any inspection or examination of the Buildings and provided (a) Tenant may accompany such Persons and all such inspections (and, if Tenant desires to accompany such Persons, Tenant shall make available personnel to accompany such Persons), (b) such access and repairs shall be performed in such a manner so as not to unreasonably disturb or unreasonably interfere with Tenant Operations, (c) Landlord shall be liable for all actual out-of-pocket damages or injuries caused by the conduct or actions of Landlord or any of its agents, servants, contractors, subcontractors or employees during such inspections, and (d) Landlord shall exercise such rights in compliance with reasonable security requirements of Tenant and in compliance with any applicable Gaming Laws.
ARTICLE 17     
ENVIRONMENTAL MATTERS
17.1    Use of Hazardous Materials.  Tenant will not use, generate, treat, hold, possess, refine, handle, abate, remove, control, manage, manufacture, produce, store, release, discharge or dispose of in, on, under, from or about the Premises or transfer or transport to or from the Premises any Hazardous Material and will not allow or instruct any other Person to do so (except for non-material quantities of substances which are customarily used in the ordinary operation of a hotel casino resort and are used and disposed of in compliance with Environmental Laws and for which Tenant has obtained any necessary permits, collectively, “Immaterial Use”).
17.2    Compliance with Environmental Laws.  Tenant shall keep and maintain the Premises in compliance with, and shall not cause, permit or suffer the Premises to be in violation of, any Environmental Law.
17.3    Environmental Liens.  Tenant shall cause the Premises to be kept free and clear of all Liens imposed pursuant to any applicable Environmental Law, whether due to any act or omission of Tenant or any other Person.
17.4    Notice to Landlord.  Tenant shall give prompt written notice to Landlord (which notice shall provide reasonable detail of all related facts, events or circumstances) of:
(a)    any use, generation, manufacture, production, storage, release, discharge or disposal of any Hazardous Material by Tenant (and, upon obtaining actual knowledge thereof, its Subtenants, agents, servants, contractors, subcontractors or employees) in, on, under, from or about the Premises or the migration thereof to or from other property, in each case, during the Term (other than Immaterial Use);
(b)    the commencement, institution or threat of any proceeding, inquiry or action by or written notice from any Governmental Entity with respect to the use, generation, manufacture, production, storage, release, discharge, disposal or presence of any Hazardous Material by Tenant in, on, under, from or about the Premises or the migration thereof from or to other property, in each case, during the Term;
(c)    all claims made or threatened by any third party against Tenant or the Premises relating to any damage, contribution, cost recovery, compensation, loss or injury resulting from the use, generation, manufacture, production, storage, release, discharge, disposal or presence of any Hazardous Material in, on, under, from or about the Premises caused by Tenant, in each case, during the Term; and
(d)    any release, occurrence or condition on the Premises caused by Tenant or, upon obtaining actual knowledge thereof, any other Person (other than Landlord, agents, servants, contractors, subcontractors or employees), in each case, during the Term, that could cause the Premises or any part thereof to be subject to any restrictions on the ownership, occupancy, transferability or use under any Environmental Law or require, any cleanup, investigation or other remedial action pursuant to any Environmental Law.
If Landlord receives written notice from any Governmental Entity of any facts, events or circumstances relating to matters described in Section 17.4, including all claims under Environmental Laws commenced or threatened against Landlord with respect to the Premises during the Term, Landlord shall promptly deliver such notice to Tenant.
17.5    Legal Proceedings.  Landlord shall have the right, but not the obligation, to join and participate in, as a party if it so elects, any legal proceedings or actions initiated with respect to the use, generation, manufacture, production, storage, release, discharge, disposal or presence of Hazardous Materials in, on, under, from or about the Premises in connection with any Environmental Law.  In the event that Tenant refuses or fails to defend any such legal proceedings or actions concerning matters for which Tenant has primary responsibility under this Article 17, Landlord shall have the right, but not the obligation, to defend proceedings or actions using counsel chosen by Landlord, as applicable, and Tenant shall reimburse Landlord for its actual, customary and reasonable attorneys’ fees incurred in connection with such defense.
17.6    Consent to Remedial Action.  Without Landlord’s prior written consent, which consent shall not be unreasonably withheld or delayed, Tenant shall not take any Remedial Work in response to the release or presence of any Hazardous Material in, on, under, from or about the Premises, nor enter into any settlement, consent or compromise which might, in Landlord’s judgment, impair the value of, respectively, Landlord’s interest in the Premises; provided, however, that such prior consent shall not be necessary to the extent the release or presence of Hazardous Material in, on, under, from or about the Premises either poses an immediate threat to the health, safety or welfare of any individual or is of such a nature that an immediate Remedial Work response is necessary and it is not reasonably practical or possible to obtain such consent before taking such action.  In such event Tenant shall notify Landlord as soon as practicable of any action so taken.  Such consent shall not be withheld, where such consent is required hereunder or if a particular remedial action is ordered by a court or any Governmental Entity of competent jurisdiction.
17.7    Remedial Work.  In the event that any investigation, site monitoring, containment, cleanup, removal, restoration or other remedial work of any kind or nature (the “Remedial Work”) is required by any Legal Requirement, or by any Governmental Entity as a result of the actions of Tenant or any other Person (other than Landlord, agents, servants, contractors, subcontractors or employees) occurring during the Term, Tenant shall within thirty (30) days after written demand for performance thereof by Landlord (or such shorter period of time as may be required under any Legal Requirement or material agreement), commence to perform, or cause to be commenced, and thereafter diligently prosecute to completion within such period of time as may be required under any Legal Requirement or agreement with Tenant related thereto, all such Remedial Work at Tenant’s sole expense in accordance with the requirements of any applicable Legal Requirement or Governmental Entity, including any Environmental Law.  All such Remedial Work shall be performed by one or more contractors, approved in advance in writing by Landlord, which approval shall not be unreasonably withheld or delayed, and under the supervision of a consulting engineer approved in advance in writing by Landlord, which approval shall not be unreasonably withheld or delayed.  All costs and expenses of such Remedial Work shall be paid by Tenant, including, without limitation, the charges of such contractor(s) and/or the consulting engineer, and Landlord’s actual, customary and reasonable attorneys’ fees and costs incurred in connection with monitoring or review of such Remedial Work.  In the event Tenant shall fail to timely commence, or cause to be commenced, or fail to complete such Remedial Work within the time required above, Landlord may, but shall not be required to, cause such Remedial Work to be performed and all reasonable costs and expenses thereof incurred in connection therewith shall be paid by Tenant to Landlord promptly upon demand, together with interest at the Default Rate from the date the same was expended and until paid.  For the avoidance of doubt, Tenant shall not be required to perform any Remedial Work with respect to the UST (as defined in the Purchase Agreement) or any other matter that resulted from actions of any Person occurring prior to the Commencement Date.
17.8    Landlord’s Right to Inspect.  In the event that Landlord reasonably believes that there may be a violation or threatened violation by Tenant of any Environmental Law or of any covenant under this Article 17, Landlord is authorized, but not obligated, by itself, its agents, employees or workmen to enter at any reasonable time following notice to Tenant during business hours and in compliance with reasonable security requirements of Tenant upon any part of the Premises for the purposes of inspecting the same for the presence of Hazardous Materials and Tenant’s compliance with this Article 17, and such inspections may include, without limitation, soil or groundwater borings; provided (a) Tenant may accompany such Persons and all such inspections, (b) all inspections and related work shall be performed in such a manner so as not to unreasonably disturb or unreasonably interfere with Tenant Operations, and (c) Tenant shall have no obligation to repair or restore the Premises with respect to any damage resulting from such inspections.  If such inspection reveals any violation by Tenant of any Environmental Law or of any covenant under this Article 17, Tenant agrees to pay to Landlord, within ten (10) days after Landlord’s written demand, all actual, customary and reasonable out-of-pocket expenses, costs or other amounts incurred by Landlord in performing any inspection for the purposes set forth in this Section 17.8.
17.9    Landlord’s Costs.  Except as otherwise provided in this Article 17, all costs and expenses reasonably incurred by Landlord under this Article 17 shall be due and payable by Tenant within ten (10) days after written demand and shall bear interest at the Default Rate from the date that is ten (10) days after receipt of written demand of such payment by Tenant until repaid.
ARTICLE 18     
OPERATIONS
18.1    Independent Contractors.  Landlord and Tenant shall be independent contractors and nothing in this Lease shall be construed as creating a partnership, joint venture, employment, agency, license or franchise relationship.  Neither Landlord nor Tenant shall have any authority to create any obligation binding upon the other party.
18.2    Tenant Employees.During the Term, all employees and independent contractors providing services at the Premises and the use and operation thereof shall (as between Tenant and Landlord) be deemed to be employees or independent contractors of Tenant and not of Landlord (such employees or independent contractors, collectively, “Tenant Employees”).  During the Term, (i) Tenant shall comply with the terms and conditions of the Collective Bargaining Agreements; provided, however, that Landlord is the entity with the ultimate obligation to make pension contributions required under the Collective Bargaining Agreements and Tenant will make such contributions on Landlord’s behalf, (ii) Tenant shall have sole responsibility for and control over the terms and conditions of employment for Tenant’s Employees and/or any other Persons performing services for Tenant; and (iii) Tenant shall have the right to offer to Tenant Employees a transfer to any of the properties of Tenant’s Affiliates.  After the Term, Landlord shall assume or cause its manager to assume the Collective Bargaining Agreements.
(a)    During the Term, Tenant shall comply, in all material respects, with all applicable laws relating to employment matters, including, but not limited, to laws relating to discrimination in employment, except that if Landlord makes the Operating Business Election, then in connection with any action or inaction by Landlord which occurs after the Term, Landlord assumes all responsibility and liability for compliance and non-compliance with the WARN Act. Tenant shall be responsible for the following liabilities to or respecting Tenant Employees having accrued and vested prior to the expiration of the Term: all employees’ wages, accrued vacation days, accrued sick days, bonuses, pension benefits, any COBRA rights, together with F.I.C.A. unemployment and other taxes and benefits due from any employer of such Tenant Employees.  Tenant shall  be responsible for any and all payments and benefits due to or on behalf of Tenant Employees (including but not limited to wages, accrued vacation days, accrued sick days, bonuses, pension benefits, severance payments, COBRA rights and any F.I.C.A. unemployment and other taxes and benefits due from any employer of such Tenant Employees) for Tenant Employees arising during the Term, and for all Tenant Employees not offered continued employment by Tenant as of the Commencement Date on the terms required by the Collective Bargaining Agreements or other applicable law; provided, however, that it is understood that, as of the Commencement Date, Tenant will make the contributions to the various pension funds listed in Schedule 6.10.3 of the Purchase Agreement on behalf of Landlord. 
(b)    Tenant shall not effectuate a “plant closing” or “mass layoff,” as those terms are defined in the WARN Act, affecting in whole or in part any Tenant Employee, without complying with the notification requirements and other provisions of the WARN Act.   
(c)    During the Term, except as required by applicable Legal Requirements, Tenant shall not be party to or become bound to any collective bargaining agreement or similar labor agreement covering any of the Tenant Employees except for such agreements set forth on Schedule 6.10.3 of the Purchase Agreement.
(d)    During the Term, except as required by applicable Legal Requirements, Tenant shall not make contributions (and shall not have any obligations to make contributions) to any Multiemployer Plans, except as set forth on Schedule 6.10.3 of the Purchase Agreement.
(e)    During the Term, (i) Tenant and its ERISA Affiliates shall maintain, operate and administer each Employee Benefit Plan in compliance in all material respects with, as applicable, the provisions of ERISA, the Code, all regulations, rulings, and announcements promulgated or issued thereunder, and all other applicable laws; (ii) Tenant shall timely file all material reports required by any Governmental Entity with respect to the Employee Benefit Plans, and (iii) Tenant and its ERISA Affiliates shall operate and administer each group health plan in compliance in all material respects with the continuation coverage notice requirements of Title I, Subtitle B, Part 6 of ERISA and Code section 4980B and the regulations thereunder.  For purposes of this Lease, the term “group health plan” will have the meaning set forth in Code section 5000(b)(1).
(f)    Neither Tenant nor its ERISA Affiliates shall engage in any transaction that would subject them to either a civil penalty assessed pursuant to ERISA section 502(i) or tax imposed by Code section 4975.
18.3    Operating Permits.  Tenant possesses all licenses (including Gaming Licenses except for those relating to the sale of the Owned Gaming Equipment as contemplated pursuant to Section 15.3), permits, franchises, authorizations, certificates, approvals and consents, including, without limitation, all environmental, liquor, gaming, health and safety licenses, of all Governmental Entities which are material to the conduct of its business and the use, occupation and operation of the Premises (collectively, “Operating Permits”).  Each such Operating Permit is and will be in full force and effect (unless, in the case of any Operating Permit, such Operating Permit is no longer necessary or advisable for the conduct of Tenant Operations). Tenant is in compliance in all material respects with all such Operating Permits, and no event has occurred which would be reasonably likely to lead to the revocation or termination of any such Operating Permit or the imposition of any restriction thereon.  Sixty (60) days prior to the Expiration Date or earlier termination of this Lease, Landlord and Tenant shall execute the Assignment Agreement in the form attached hereto as Schedule G (the “Assignment Agreement”).  As set forth in the Assignment Agreement, Landlord and Tenant shall, as applicable, within five (5) days of the execution date of the Assignment Agreement execute and file all necessary applications with the Federal Communications Commission (“FCC”) to seek the consent of the FCC for the assignment of the Communications Licenses (as defined in the Assignment Agreement) from Tenant to Landlord.
18.4    Trademark License.  Landlord shall procure for the benefit of, and hereby grants to, Tenant the non-exclusive right and license to use and otherwise exploit the Property Marks in connection with the operation, promotion and marketing of the Premises throughout the Term.  As between Landlord and Tenant, with respect to such right and license, Tenant shall, during the Term, have the sole and exclusive right to determine its use of the Property Marks, including the form of presentation of the Property Marks in the operation of the Premises, all uses of the Property Marks in marketing, sales, advertising and promotional materials of the Premises, any goods or services relating to the Premises and any signage for the Premises.  Upon the expiration of the Term, the foregoing grant shall automatically terminate and, if required by Landlord, Tenant shall execute such documentation as Landlord may reasonably request to evidence the termination of such grant.Guest Data. 
(a)    Within thirty (30) days of the end of each calendar quarter during the Term (and if the Expiration Date does not coincide with the end of a calendar quarter, then within thirty (30) days of the Expiration Date), Tenant shall provide Landlord with the Guest Data obtained by Tenant during such calendar quarter (or portion thereof preceding the Expiration Date if the Expiration Date does not coincide with the end of a calendar quarter), in the format attached in Exhibit F to the Purchase Agreement; provided, however, that Landlord shall have the right to request additional data as to Persons to the extent such data relates solely to such Person’s activity at the Premises, which Tenant shall reasonably consider (but any provision or withholding of any such requested information shall be in Tenant’s sole discretion).  Landlord, for itself and on behalf of its Affiliates: (i) acknowledges and agrees that Tenant and its Affiliates shall be co-owners of the Guest Data; and (ii) disclaims any right, title or interest in or to any other guest data or information in the possession or control of Tenant or any of its Affiliates.
(b)    Following the Commencement Date, Landlord shall not and shall cause its Affiliates not to use (directly or indirectly, in any manner or for any reason) the Guest Data until the Expiration Date. Each of Landlord and Tenant shall not and shall cause its respective Affiliates not to use the Guest Data (i) in contravention of the terms of the customer agreement, consent, privacy policies or other policies of Tenant or any of its Affiliates applicable to such Guest Data (each a “Tenant Privacy Policy”) but only to the extent that such Tenant Privacy Policies (A) are consistent with the privacy policies applicable to data collected at facilities owned or operated by Tenant or any of its Affiliates that are located in Nevada, and (B) with respect to modifications, updates or introduction of Tenant Privacy Policies after the Commencement Date but prior to the Expiration Date, do not disproportionately adversely impact Tenant Operations, (ii) in any activity that would be reasonably expected to constitute spamming, or (iii) to offer, solicit or promote any illegal, obscene, inappropriate, adult oriented, or pornographic material or activity or to engage in any activity in violation of any applicable laws or the terms of the Tenant Privacy Policy.  Notwithstanding the foregoing, Landlord and Buyer shall no longer be required to comply with Tenant’s Privacy Policies following the Expiration Date and thereafter following the date that Landlord or Buyer has notified Persons to whom Guest Data relates of Buyer’s or Landlord’s customer agreements, consents, privacy policies or other policies applicable to Guest Data (each a “Landlord’s Privacy Policy”) so long as (y) Landlord’s Privacy Policies are no less protective of such Guest Data than Tenant Privacy Policies and (z) Landlord’s Privacy Policies comply with all Legal Requirements. Following the Expiration Date, there shall be no restrictions on the ability of Buyer, its Affiliates (including Landlord) or any successor-in-interest to Buyer (including any Lender or any Lender’s designees), to sell or transfer the Guest Data to any other Person or to use the Guest Data in any manner that is not in violation of (1) Tenant Privacy Policies or Landlord’s Privacy Policies, as applicable, in accordance with the immediately preceding sentence, (2) Legal Requirements or (3) any applicable data sharing opt ours communicated by any relevant customer as documented in the Guest Data records or information provided by Tenant to Landlord or Buyer at any time prior to the Expiration Date.  Landlord (on behalf of itself and its Affiliates) and Tenant agree that, in the event of a conflict among, or it is unclear which of, the terms of any such Tenant Privacy Policy are applicable, the terms most favorable to and protective of the Persons to whom such Guest Data relates shall apply for purposes of this Section.  Notwithstanding the foregoing sentences of this Section, Landlord (on behalf of itself and its Affiliates) and Tenant agree to obtain consent from the Person(s) to whom the applicable Guest Data relates before materially changing the terms of any customer agreement, consent, privacy policy or other policy applicable to such Guest Data; provided, however, if the change provides materially more protection to the Guest Data, then the applicable party may instead provide sufficiently prominent and robust written notice to such Person at least thirty (30) days prior to making such change and a reasonable period of time for such Person to opt out of such change.  Notwithstanding anything contained in this Lease, the Purchase Agreement or any Ancillary Agreement to the contrary, the use of the Guest Data by Landlord and Tenant and their respective Affiliates shall, in all events, be subject to the Use Restrictions.  Landlord and Tenant agree to, and to cause their respective Affiliates to, maintain commercially reasonable measures to protect the physical safety and data integrity of the Guest Data.
(c)    On the last day of the Term, Tenant shall provide Landlord with a list of patrons that are not able to participate in gaming at any of the properties of Tenant and its Affiliates either because they have “self-excluded” from participating in gaming at such properties pursuant to the responsible gaming program of Tenant and its Affiliates or are “state excluded” from doing so.
ARTICLE 19     
MISCELLANEOUS PROVISIONS
19.1    Signs.  With the prior written consent of Landlord, which shall not be unreasonably conditioned, withheld or delayed, Tenant may place one or more signs, including third party signage, on the exterior of the Premises to indicate the nature of the business of Tenant or any subtenant or occupant.  Any sign shall be lawful under Legal Requirements.  Notwithstanding the foregoing, Landlord hereby approves the signage placed on the Premises as of the Commencement Date.  No Landlord consent shall be required for interior signage at the Premises.
19.2    Headings.  The headings herein are inserted only as a matter of convenience and for reference and in no way define, limit or describe the scope or intent of this Lease nor in any way affect this Lease.
19.3    Entire Agreement.  This Lease, including all schedules attached hereto which are hereby incorporated herein by this reference, contains the entire agreement and specification of rights and obligations between the parties and may not be extended, renewed, restated, terminated or otherwise modified in any material manner except by an instrument in writing executed by the party against whom enforcement of any such modification is sought.  All prior understandings and agreements between the parties and all prior working drafts of this Lease are merged in this Lease, which alone expresses the agreement of the parties.  The parties agree that no inferences shall be drawn from matters deleted from any working drafts of this Lease.  The provisions of this Article 19 shall survive the expiration or earlier termination of this Lease.
19.4    Successors and Assigns.  The agreements, terms, covenants and conditions herein shall bind and inure to the benefit of Landlord and Tenant and their respective heirs, personal representatives and, except as is otherwise provided herein, their permitted successors and permitted assigns.
19.5    Notices.  All notices or other communications required, desired or permitted hereunder shall be in writing, addressed to the applicable party as set forth below and shall be (a) personally delivered, (b) sent by nationally recognized overnight courier with proof of receipt of delivery, (c) delivered or sent by facsimile and shall be deemed received upon the earlier of if personally delivered, the date of delivery to the address of the Person to receive such notice, if sent by overnight courier, the date the overnight courier delivery is made, or if given by facsimile, when sent as confirmed by confirmation of facsimile.
	
		
	If to Landlord:
	Milbank LLP
55 Hudson Yards
New York, NY 10001
Attn: Kevin J. O’Shea
Facsimile No  (212) 822-5254

Milbank LLP
2029 Century Park East, 33rd Floor
Los Angeles, CA 90067
Attn: Deborah Conrad 
Facsimile No.: (213) 629-5063

	With a copy to:
	Imperial Companies
888 Seventh Avenue
27th Floor
New York, NY 10019
Attn: Tom Ellis
Facsimile No.:  (212) 894-7907

	If to Tenant:
	Rio Properties, LLC 
Attention:  Eric Hession
One Caesars Palace Drive 
Las Vegas, Nevada  89109 
Facsimile No. (702) 407-6420

	With a copy to:
	Rio Properties, LLC 
Attention:  General Counsel
One Caesars Palace Drive 
Las Vegas, Nevada  89109 
Facsimile No. (702) 407-6418

Notice of change of address shall be given by written notice in the manner detailed in this Section 19.5.  Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to constitute receipt of the notice, demand, request or communication sent.
19.6    Severability.  If any provision of this Lease shall be invalid or unenforceable, the remainder of the provisions of this Lease shall not be affected thereby and each and every provision of this Lease shall be enforceable to the fullest extent permitted by applicable law.
19.7    No Brokers.  Landlord and Tenant each represent and warrant to the other party that such party has not dealt with any real estate broker in connection with this Lease and Landlord and Tenant agree to indemnify the other party and save the other party harmless from any and all claims for brokerage commissions by any other Person claiming through such party to have brought about this Lease transaction.  The provisions of this Section 19.7 shall survive the expiration or earlier termination of this Lease.
19.8    Rules of Construction.  The parties took equal part in drafting this Lease and no rule of construction that would cause any of the terms hereof to be construed against the drafter shall be applicable to the interpretation of this Lease.
19.9    Time is of the Essence.  Time is strictly of the essence with respect to each and every term and provision of this Lease.
19.10    Force Majeure.  The time within which either party hereto shall be required to perform any act under this Lease, other than the payment of money, shall be extended by a period of time equal to the number of days during which performance of such act is delayed by strikes, lockouts, acts of God, governmental restrictions, failure or inability to secure materials or labor by reason of priority or similar regulation or order of any Governmental Entity, enemy action, civil disturbance or any other cause beyond the reasonable control of either party hereto (“Force Majeure”).  Insolvency or financial condition shall not be a Force Majeure event.
19.11    Governing Law/Consent to Jurisdiction/Venue.  Irrespective of the place of execution and/or delivery of this Lease or the location of the Premises, this Lease shall be governed by and shall be construed in accordance with, the Legal Requirements of the State of Nevada applicable to agreements entered into and to be performed entirely within Nevada without regards to conflicts of law principles.  Landlord and Tenant hereby consent and submit to the exclusive jurisdiction of the state and Federal courts located in Clark County, Nevada with respect to any claim or litigation arising hereunder or any alleged breach of the covenants or provisions contained herein, and acknowledge that proper venue in any matter so claimed or litigated shall be in the state and Federal courts located in Clark County, Nevada.
19.12    Waiver of Jury Trial.  EACH OF LANDLORD AND TENANT SHALL AND THEY HEREBY DO WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THEM AGAINST THE OTHER ON ANY MATTERS WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE OR TENANT’S USE OR OCCUPANCY OF THE PREMISES.
19.13    No Recording.  The parties hereto hereby agree, confirm and acknowledge that neither this Lease, nor a memorandum of this Lease, may be recorded (or will be recorded) in the property or other records.
19.14    Tenant Remedies.  In the event that Tenant claims or asserts that Landlord has violated or failed to perform a covenant of Landlord not to unreasonably withhold, delay or condition Landlord’s consent or approval of any matter under this Lease, or in any case where Landlord’s reasonableness in exercising its judgment is in issue, Tenant shall not be entitled to any monetary damages for a breach of any such covenant or unreasonable exercise of judgment, and Tenant hereby specifically waives the right to any monetary damages in connection with any such breach or unreasonable exercise of judgment. Without limitation of the foregoing, except as set forth in Article 7, Article 8, Section 19.19 and Section 19.22, Tenant agrees that no breach or default by Landlord hereunder (other than a constructive eviction of Tenant that is caused by Landlord or its agents) shall excuse Tenant from performing, or constitute a defense to Tenant’s performance of, any duty, liability or obligation of Tenant under this Lease and in no event shall any breach or default by Landlord hereunder (other than such a constructive eviction of Tenant) entitle Tenant to terminate this Lease, or abate Rent, in whole or in part.
19.15    Third Persons.  Nothing in this Lease, expressed or implied, is intended to confer upon any person other than the parties hereto or any Persons to be indemnified hereunder any rights or remedies under or by reason of this Lease.
19.16    Waiver.  The failure of either party to require the performance of any obligation herein, or the waiver by either party of any breach hereof, shall not prevent a subsequent enforcement of such obligation or constitute a waiver of any subsequent breach.
19.17    Counterparts and Admissibility of Electronic Copies.  This Lease and any amendment or addendum thereto may be executed in counterparts each of which when executed by the requisite parties shall be deemed to be a complete original document.  An electronic (including pdf) or facsimile copy thereof shall be deemed, and shall have the same legal force and effect as, an original document.
19.18    Attorneys’ Fees.  In the event either Landlord or Tenant brings an action against the other to enforce this Lease, or to defend an action brought by the other party, the prevailing party in such action shall be reimbursed by the other party for such costs as may be incurred in such action and any appeal from judgment, including reasonable attorney’s fees, court costs and expert witness fees.
19.19    Anti-Corruption Representations.  Each party represents and warrants to the other that in carrying out its responsibilities under this Lease, it shall not (a) pay, offer or promise to pay, or authorize the payment, directly or indirectly, of anything of value to any person employed by or acting for or on behalf of any governmental official or employee or any political party or candidate for political office, for the purpose of inducing or rewarding any favorable action in any matter; or (b) engage a third party to make such payments.  Each party will maintain records concerning any payments made to a third-party under this Lease, and if the other party in good faith believes that a breach of any of the anti-corruption representations and warranties set forth above has occurred, the breaching party will make those records available for the other party’s inspection at the other party’s written request at reasonable times.  In the event of a breach of any of the anti-corruption representations and warranties set forth above by a party, this Lease may be terminated by the other party upon written notice to the breaching party.
19.20    Anti-Terrorism Law. Each party represents and warrants to the other party that: (a) it is not acting, directly or indirectly, for or on behalf of any person, group or nation, named by any Executive Order or the United States Treasury Department as a “terrorist”, “Specially Designated National and Blocked Person”, or other banned or blocked person, group, or nation (collectively, “Banned Persons”) pursuant to any anti-terrorism law; (b) it is not engaged in this Lease transaction, or instigating or facilitating this Lease, directly or indirectly on behalf of any Banned Person; (c) it currently does not appear, and throughout the Term, neither it, nor any officer, director, shareholder, manager, partner, member or other owner of such party shall appear, on any list of Banned Persons; (d) to its actual knowledge, no Anti-Terrorism Law prohibits the other party from doing business with it; (e) such party, its officers, managers and directors shall not, during the Term violate any Anti-Terrorism Laws; and (f) such party, its officers, managers and directors shall not, during the Term, do business with any Person that to its actual knowledge has violated or is violating any Anti-Terrorism Laws. 
19.21    Confidential Information.  Each party agrees to maintain in strict confidence the economic terms of this Lease and any or all other materials, data and information delivered to or received by any or all of the other party and/or its Affiliates, either prior to or during the Term in connection with the negotiation and execution hereof.  Such confidentiality obligation shall not apply to (a) disclosures required by law; provided, however, that a party shall use its commercially diligent efforts to provide as much notice as possible of such proposed disclosure to the other party and to reasonably cooperate with any effort of the other party to resist such disclosure requirement, (b) disclosures to such party’s debt and equity providers and its and their respective officers, directors, employees, attorneys and accountants, subject, however, to the provisions of the Confidentiality Agreement (as defined in the Purchase Agreement), and (c) disclosures required to enforce the provisions of this Lease.  
19.22    Regulatory Provisions. (a)    Landlord acknowledges and agrees that its rights, remedies and powers under this Lease may be exercised only to the extent that the exercise thereof does not violate any applicable provisions of the Gaming Laws and only to the extent that any required approvals (including prior approvals) are obtained from the requisite Gaming Authorities and that Landlord may be subject to being called forward by the requisite Gaming Authorities in order to determine whether Landlord meets suitability standards under applicable Gaming Law.  Landlord agrees to cooperate with the applicable Gaming Authorities in connection with the administration of their regulatory jurisdiction over Tenant, including, without limitation, the provision of such documents or other information as may be requested by any such Gaming Authorities relating to Landlord, Tenant or this Lease.
(b)    As a holder of privileged gaming licenses, Tenant and its Affiliates are required to adhere to strict laws and regulations regarding vendor and other business relationships or associations.  If at any time the Compliance Committee of CEC (including any successor thereto, the “Compliance Committee”) determines in its sole discretion (acting in good faith) that (i) Tenant’s association with Landlord (or any Person that, directly or indirectly, holds any interest in Landlord or any key principal of Landlord or any such Person) violates or is likely to violate any statutes and/or regulations regarding prohibited relationships with gaming companies or (ii) it is in the best interests of Tenant and its Affiliates to terminate Tenant’s relationship with Landlord (or any Person that, directly or indirectly, holds any interest in Landlord or any key principal of Landlord or any such Person) in order to protect any pending licensing applications or any privileged gaming licenses of Tenant or any of its Affiliates or protect Tenant and its Affiliates from any disciplinary actions by any Gaming Authority (each of clause (i) and (ii) above, a “Suitability Problem”), Tenant shall provide written notice thereof to Landlord together with (to the extent permitted by applicable law) a reasonably-detailed description of the facts and circumstances leading Tenant to its determination that a Suitability Problem exists and copies of any notices from any Gaming Authority, Governmental Entity or other Person asserting or relating to such determination (a “Suitability Problem Notice”).  Following the delivery by Tenant of a Suitability Problem Notice, Landlord shall use commercially reasonable efforts to take such actions as would eliminate such Suitability Problem within the time period required by the Compliance Committee or any applicable Gaming Authority.  If Landlord is unable to, after using commercially reasonable efforts, eliminate such Suitability Problem within such time period, Tenant may terminate this Lease upon written notice to Landlord.  Landlord agrees to cooperate with Tenant, if requested, to undergo a background investigation to comply with Tenant’s compliance policies and to continue to cooperate with Tenant throughout the Term of this Lease to establish and maintain Landlord suitability under applicable Gaming Law.  During the Term of this Lease, to the extent any prior disclosures become inaccurate, including, but not limited to, due to a new Equity Financing Source (as defined in the Purchase Agreement) or the initiation of any criminal proceeding or any civil or administrative proceeding or process which alleges any violations of law involving Landlord (or any Person that, directly or indirectly, holds any interest in Landlord or any key principal of Landlord or any such Person), Landlord shall disclose to Tenant all information regarding such inaccuracies actually known to Landlord at the time within ten (10) calendar days from that event.  Landlord agrees to comply, and use diligent efforts to cause third parties to comply, with any background investigation conducted in connection with the disclosure of this updated information.  Notwithstanding any other terms of this Lease, in the event of termination of this Lease pursuant to this Section 19.22, (A) the proceeds, if any, of Tenant’s rental interruption proceeds not to exceed the amount of Base Rent and Additional Rent for the remainder of the Term shall be paid to Landlord unless the Suitability Problem was a Buyer Bad Act Suitability Problem (as defined in the Purchase Agreement), (B) any Extension Fee paid by Landlord to Tenant for the portion of the Extension Term subsequent to the termination date shall be paid by Tenant to Landlord unless the Suitability Problem was a Buyer Bad Act Suitability Problem, and (C) thereafter neither Tenant nor Landlord shall have any further liability to the other under this Lease except for those rights and obligations that, by their terms, survive the termination of this Lease.  Landlord agrees to promptly notify Tenant of any Change of Control (as defined in the Purchase Agreement) of Landlord, any Person who will be an Equity Financing Source other than an Identified Equity Financing Source (as defined in the Purchase Agreement) or any knowledge obtained by Landlord of a matter that would reasonably be expected to result in a Buyer Bad Act Suitability Problem.  Tenant represents to Landlord that, as of the Commencement Date, the Compliance Committee (x) is composed entirely of Independent Persons (as defined in the Purchase Agreement); (y) [has received, for Landlord and each Identified Equity Financing Source, a Business Information Form and such other information that the Compliance Committee may have requested for Landlord and each Identified Equity Financing Source]; and (z) has determined prior to the Commencement Date, based on the information disclosed in such Business Information Form and, with respect to Landlord only, assuming the representations and warranties of Landlord in Section 19.22(c) are true and correct, that no Suitability Problem exists with respect to Landlord or the Identified Equity Financing Sources. Landlord agrees that it shall not utilize an Equity Financing Source other than an Equity Financing Source (1) identified to Tenant no later than November 15, 2019 and (2) that has been approved by the Compliance Committee.
(c)    To Landlord’s knowledge, as of the Commencement Date, none of the information provided to the Compliance Committee referenced in Section 19.22(b) related to any Identified Equity Financing Source contained any material misstatements or material omissions.  
[Signatures appear on the following page.] 

IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the day and year first above set forth.
Landlord:    IC 3700 FLAMINGO ROAD LLC, 
a Delaware limited liability company

By:    
 
Name:    
 
Title:    
Tenant:    RIO PROPERTIES, LLC, 
    a Nevada limited liability company
By:    
 
Name:    
 
Title:    

 44620.00001

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