Document:

Domain Lease

     

    

      Domain
        Lease
        Agreement

       

      Re:
        www.brazil.com www.indonesia.com www.malaysia.com www.canadian.com
        www.greatbritain.com

       

      This
        agreement
        dated
        for reference May 1, 2005 is between Domain
        Holdings Inc. (Lessor),
        an
        Alberta corporation with a business office at Suite 600, 1100 Melville Street,
        Vancouver, BC, CANADA V6E 4A6; and
        FrequentTraveller.com Inc. (Lessee),
        a
        Nevada corporation with a business office at 2311 Cherry Street, Bellingham,
        WA,
        USA 98225.

       

      Whereas
        Lessor
        owns Domain Names and has agreed to lease the right to sell Travel Products
        on
        the Domain Names to Lessee, in
        consideration
        of $1
        and the following mutual promises, the parties agree that:

       

      	1.  	
                
                Definitions.
                In
                this agreement,

            

       

      	a.  	
              “Domain
                Names” means    
                www.greatbritain.com .

            

       

      	b.  	
              “Effective
                Date” means the day on which the parties have signed this
                agreement.

            

       

      	c.  	
              “Travel
                Products” includes the travel related products that Lessee chooses to
                advertise, market and sell through the Domain Names including but
                not
                limited to banners, text links, hotel bookings, flight bookings,
                tour
                bookings and travel insurance.

            

       

      	d.  	
              “Net
                Revenues” means the amount of gross revenues that Lessee generates from
                all sources, including but not limited to the Domain Names, after
                deducting:

            

       

      	i.  	
              credits
                for returns and normal trade discounts,

            

       

      	ii.  	
              any
                tax, except income tax, that Lessee is required to pay on the sale
                of
                Travel Products or to withhold from payments to
                Lessor.

            

       

      If
        Lessee
        chooses to use third parties to handle Travel Products other than Pay Per
        Click
        or Banner Advertising, Net Revenues are equal to gross revenue paid by the
        consumer to the third party handling the sale and Lessor’s Royalty is a function
        of the gross booking.

       

      	e.  	
              “Annual
                Royalty” means Percentage of annual Net Revenues of the Lessee, subject to
                the terms set out in paragraph 5.

            

       

      	f.  	
              “$”
                means United States dollars unless otherwise
                indicated.

            

       

      	g.  	
              References
                to time and business days, whether specific or general, are references
                to
                the time and business days in Vancouver, British Columbia,
                CANADA.

            

       

      	2.  	
              Lease
                of Right to Sell Travel Products at Domain Names.
                Lessor will lease the right to sell Travel Products, at the Domain
                Names,
                to the Lessee on the terms set out in this agreement. The Lessee
                acknowledges that travel products represent only one avenue of development
                for the Domain Names and that any and all other avenues of development,
                including but not limited to news, dating, music, classifieds etc.,
                remain
                the property of the Lessor. The Lessee further acknowledges that
                the
                development of additional business activities at the Domain Names
                will
                benefit the offering of Travel Products at the Domain Names. The
                Lessor’s
                right to develop additional business activities at the Domain Names
                shall
                not be impeded by the Lessee. 

            

       

      The
        Lessor acknowledges that some additional business activities, including but
        not
        limited to, pornography for example, will be destructive to the Lessee’s travel
        business activities. The Lessor agrees not to engage knowingly and willingly
        in
        additional business activities that damage or marginalize the Lessee’s travel
        business activities. Notwithstanding the above, the Lessor’s right to develop
        additional business activities at the Domain Names shall not be impeded by
        the
        Lessee. 

       

      
        
           

        

        
          EX
            - 1 - 10.1

          
            

          

        

        
           

        

      

       

      	3.  	
              Development
                of Domain Names.
                Lessee must immediately begin to develop the Domain Names so that
                it can
                sell Travel Products as soon as practically possible. Lessee acknowledges
                that this is a material term of this agreement and Lessee’s failure to
                develop the Domain Names and sell Travel Products constitutes a default
                under paragraph 15. Lessee is responsible for all costs of development
                of
                Travel Products on the Domain Names and will work with Lessor to
                ensure
                the Travel Products fit in to the overall look and feel the Lessor
                chooses
                at these Domain Names.

            

       

      All
        right, title and interest to any trademarks related to the Domain Names and
        all
        logos, copyrights and other marks associated with the Domain Names will remain
        the property of the Lessor. 

       

       

      	4.  	
              Term.
                This agreement will stay in effect until December 31, 2010, unless
                terminated by either party according to Paragraph
                13.

            

       

       

      	5.  	
              Annual
                Royalty.

            

       

      	a.  	
              The
                annual Royalty paid to Lessor will be based on the Net Revenues generated
                during the calendar year by the Lessee as
                follows:

            

       

      5%:
        On
        portion up to $20 Million, &;

      4%:
        On
        portion between $20 Million & $40 Million, &;

      3%:
        On
        the portion between $40 Million & $60 Million, &;

      2%:
        On
        the portion between $60 Million & $80 Million; &;

      1%:
        On
        the portion over and above $80 Million.

       

      	b.  	
              Lessee
                will pay the Royalty in monthly instalments on the 30th day of the
                month
                following the month in which Lessee receives Net
                Revenues.

            

       

      	c.  	
              Lessee
                will deliver with the Royalty payment a statement that sets out the
                total
                Net Revenues received, a list of items deducted to determine the
                Net
                Revenues, and the calculation of the
                Royalty.

            

       

      	d.  	
              If
                Lessor objects to any Royalty statement, then Lessor must give Lessee
                written notice within three months of the date of the Year-End Royalty
                statement, otherwise the Royalty statement is deemed to be conclusive
                and
                binding on the Lessor. Lessor cannot make any claim against the statement
                unless it makes the claim within the three month period following
                the date
                of the Year-End Royalty statement.

            

       

      	e.  	
              Beginning
                in the calendar year of
                2006
                the annual Royalty will be a minimum of $150,000. In the case that
                the
                minimum is not reached through the aggregate of monthly payments,
                Lessee
                will make up the difference by payment to Lessor on the 30th
                of
                January of the year following the annual Royalty in question.
                

            

       

      	f.  	
               If
                Lessee fails to make a Royalty payment within 30 days of the date
                on which
                it is due then Lessee is in default of this
                agreement.

            

       

       

      
        	
                6.

              	
                Option
                  to Renew. The
                  Lessee will have the option to renew this agreement for an additional
                  period of 5 years, commencing January 1, 2011 and ending December
                  31,
                  2015, and in 5 year increments thereafter, with the following stipulation:
                  

              

      

       

      The
        minimum Royalty payment referenced in 5 (d) will be adjusted to the average
        of
        annual Royalty payments generated in the previous 5 year term.

       

      
        	
                7.

              	
                Examination
                  of records.
                  Lessee will keep accurate books and records concerning all transactions
                  relating to this agreement for two years from the date on which
                  Lessor
                  receives the Royalty statements. Lessee will permit Lessor or Lessor’s
                  representative to examine them at Lessee’s business premises during
                  Lessee’s normal business hours if Lessor has given Lessee four days’
                  written notice that Lessor wants to examine
                  them.

              

      

       

       

      
        
           

        

        
          EX
            - 2 - 10.1

          
            

          

        

        
           

        

      

       

      
        	
                8.

              	
                Independent
                  audit.
                  If
                  Lessor discovers an error when it examines Lessee’s records as permitted
                  by paragraph 6, then Lessor may have the books and records audited
                  by
                  independent accountants qualified to perform audits and approved
                  by
                  Lessee. If the audit uncovers an underpayment of a Royalty and
                  restates
                  the amount of the Royalty, the Lessee immediately will pay the
                  amount of
                  the underpayment to Lessor. Lessor will pay the cost of the audit
                  unless
                  the underpayment equals or exceeds 5% of the restated Royalty,
                  in which
                  case Lessee will pay the cost of the audit. The decision of the
                  independent auditor is binding on the
                  parties.

              

      

       

      9.  Non-disclosure
        and use of confidential information.

       

      a. Lessor
        will not disclose to others, personally use for its own benefit or the benefit
        of third parties ,or otherwise appropriate or copy any of Lessee’s confidential
        information except as required in connection with Lessor’s performance of its
        obligations under this agreement unless Lessor can prove that it acquired
        the
        information either before its creation, development or disclosure by Lessee,
        or
        by other than unauthorised disclosure.

       

      b. Confidential
        information is any proprietary or confidential information that Lessor learns
        from Lessee or from Lessor’s performance under this agreement about Lessee’s
        business, including trade secrets; products, processes and services; business
        plans, product development plans, marketing plans or internal business
        procedures; confidential and proprietary information of Lessee’s customers; test
        procedures and results; computer codes and hardware system information; customer
        information and lists; accounting, marketing and merchandising reports and
        other
        information generated by Lessee’s operation of the Domain Names; Lessee’s
        patents, trademarks or other intellectual property rights; and business methods
        used or developed by or for Lessee.

       

      c. Lessor
        acknowledges that the confidential information is the exclusive property
        of
        Lessee, its customers, or third parties that have disclosed information to
        Lessee in confidence.

       

      d. Lessor
        acknowledges that damages at law are an insufficient remedy if Lessor violates
        the terms of this paragraph and that Lessee may apply for injunctive relief
        in
        any court of competent jurisdiction to restrain the breach or threatened
        breach
        of Lessor’s promises in this paragraph.

       

      e. Lessor’s
        promises in this paragraph are an essential element of this agreement and
        survive the termination of this agreement.

       

       

      	10.  	
              Good
                faith.
                The parties acknowledge that circumstances outside of their control
                or
                knowledge can affect their performance of this agreement. Each will
                work
                with the other in good faith to resolve any problems that arise in
                these
                circumstances.

            

       

       

      	11.  	
              Representations
                and warranties.

            

       

      	a.  	
              Lessor
                represents and warrants that:

            

       

      	i.  	
              It
                is in good standing in Alberta and where it operates and has the
                power to
                make this agreement.

            

       

      	ii.  	
              It
                is authorised to make and perform this
                agreement.

            

       

      	iii.  	
              It
                has not granted to any third party rights that could restrict or
                in any
                way limit the Lessee’s lawful use of the Domain
                Names.

            

       

      	iv.  	
              To
                the best of its knowledge, it owns the rights that it has granted
                to
                Lessee under this agreement.

            

       

      	v.  	
              It
                owns the Domain Names free of any claim or potential claim by any
                third
                party.

            

       

      	vi.  	
              The
                Domain Names are validly registered in Lessor’s
                name.

            

       

      	b.  	
              Lessee
                represents and warrants that:

            

       

      	i.  	
              It
                is in good standing in Nevada and where it operates and has the power
                to
                make this agreement.

            

       

      	ii.  	
              It
                is authorised to make and perform this
                agreement.

            

       

      	c.  	
              The
                parties’ representations and warranties survive the Effective
                Date.

            

       

       

      
        
           

        

        
          EX
            - 3 - 10.1

          
            

          

        

        
           

        

      

       

      12. Indemnity. 

       

      a. Each
        party indemnifies the other party and the other party’s directors, officers,
        employees and agents from all claims, demands, losses, liabilities, and expenses
        (including reasonable legal fees) arising out of the party’s breach of this
        agreement.

       

      b. Lessee
        indemnifies and will defend Lessor, its directors, officers, employees and
        agents and hold each of them harmless from all claims, demands, damages,
        losses,
        liabilities, suits and expenses, including reasonable legal fees arising
        out of
        or in connection with Lessee’s use of the Domain Names.

       

       

      13. Default.

       

      a. Lessee
        is
        in default if it does not make a payment or perform any other material
        obligation that is required by this agreement and Lessor notifies Lessee
        in
        writing that it is in default. If Lessee has not cured the default by the
        end of
        thirty days from Lessee’s receipt of Lessor’s written notice, then Lessor may
        terminate this agreement and all obligations hereunder.

       

      b. Lessor
        is
        in default if it does not perform any material obligation that is required
        by
        this agreement and Lessee notifies Lessor in writing that it is in default,
        and
        Lessor has not cured the default by the end of thirty days from Lessor’s receipt
        of Lessee’s written notice.

       

      14. Termination.

       

      a. Lessor
        may terminate this agreement, without prejudice to any rights that it has
        under
        this agreement or otherwise, on written notice to Lessee if:

       

      	i.  	
              Lessee
                files for bankruptcy, a receiver or trustee of any of Lessee’s property is
                appointed and the appointment is not vacated within sixty days of
                the
                appointment, or any order is made or resolution passed for the winding
                up
                of Lessee for any purpose other than the bona fide reconstruction
                or
                amalgamation of Lessee, and the order or resolution is not rescinded
                within sixty days of the date of the order or resolution;
                or

            

       

      	ii.  	
              Lessee
                breaches any of its representations and warranties or is in default
                under
                paragraph 12.

            

       

      b. Termination
        of this agreement under this paragraph by Lessor does not free Lessee from
        it’s
        Royalty payment or reporting requirements outlined in this
        agreement.

       

      c. Lessee
        may terminate this agreement, without prejudice to any rights that it has
        under
        this agreement or otherwise, on written notice to Lessor if Lessor breaches
        any
        of its representations and warranties or is in default under paragraph
        12.

       

       

      15. Right
        of First Refusal

       

      In
        the
        event the Lessor undertakes to sell the Domain Names it will offer the Lessee
        the right of first refusal to purchase the Domain Names at the same terms
        as
        those offered to any 3rd
        party.
        This right of first refusal will be valid for a period of 15 days following
        the
        Lessor’s written notification to the Lessee that it intends to sell the Domain
        Names.

       

       

      
        
           

        

        
          EX
            - 4 - 10.1

          
            

          

        

        
           

        

      

      

       

      	16.  	
              General
                provisions.

            

       

      	a.  	
              Time
                is of the essence of this agreement.

            

       

      	b.  	
              If
                either party must perform under this agreement on a day that is not
                a
                business day in Vancouver, British Columbia, then the party must
                perform
                on the next business day in Vancouver.

            

       

      	c.  	
              Any
                notice that must be given under this agreement must be in writing
                and
                delivered by hand to the address given for the party on page 1 or
                transmitted by fax or email to the fax number or email address that
                the
                parties have given to each other. Notice is deemed to have been received
                when it is delivered if it is delivered during normal business hours
                and
                on the next business day if it is delivered outside of normal business
                hours.

            

       

      	d.  	
              This
                agreement is the entire agreement between the parties and its terms
                may be
                waived or amended only in writing.

            

       

      	e.  	
              This
                agreement does not create a partnership or joint venture or any other
                kind
                of business association between the parties and neither party has
                the
                power to bind the other in any way.

            

       

      	f.  	
              Lessee
                may not assign its interest in this agreement without Lessor’s written
                consent.

            

       

      	g.  	
              This
                agreement is binding on the parties and upon their respective successors,
                assigns and any purchasers of any or all of the Domain
                Names.

            

       

      	h.  	
              This
                agreement must be construed in accordance with the laws of British
                Columbia and litigated in the courts of British
                Columbia.

            

       

      	i.  	
              No
                finding by a court of competent jurisdiction that any provision of
                this
                agreement is invalid, illegal, or otherwise unenforceable operates
                to
                impair or affect the remaining provisions which remain effective
                and
                enforceable.

            

       

      	j.  	
              This
                agreement may be signed in counterparts and delivered to the parties
                by
                fax.

            

       

       

       

      The
        parties’ signatures
        below
        are evidence of their agreement.

       

      

      DOMAIN
        HOLDINGS INC.

      

      /s/
        David Jeffs

      ___________________________________

      Authorised
        signatory: David Jeffs, President

      

      Date:
        May
        1, 2005

      

      

      FREQUENTTRAVELLER.COM
        INC.

      

      /s/
        Graham Heal

      ____________________________________

      Authorised
        signatory: Graham Heal, President

      

      Date:
        May
        ______, 2005

    

     

     

    
      
         

      

      
        EX
          - 5 - 10.1Exhibit 10.1

 

CONSTRUCTION MANAGEMENT AGREEMENT

 

This
Construction Management Agreement is made and entered into effective as of July 14,
2005, by and between Seneca Construction Management Corporation (“Construction Manager”) and Seneca
Territory Gaming Corporation (“Owner”).

 

WHEREAS,
the parties desire to enter into this agreement in order to set forth the
terms, conditions and procedures under which the Casino Hotel (hereinafter
defined) will be constructed;

 

NOW,
THEREFORE, for and in consideration of the premises and the mutual covenants
and agreements contained herein, the parties hereby stipulate and agree as
follows:

 

ARTICLE I.

DEFINITIONS

 

1.1           Specific
Definitions.  The following
capitalized terms shall have the meanings ascribed to them in this Section 1.1.

 

“Affiliate”
means, with respect to any relevant Person, any other Person that directly or
indirectly controls, is controlled by or is under common control with, the
relevant Person. For purposes of this definition, the term “control” (including
its derivatives and similar terms) means owning, directly or indirectly, more
than 25% of the voting interest in the relevant Person.

 

“Agreement”
means this Construction Management Agreement (including any exhibits,
supplements and other attachments), as amended, restated, supplemented or
otherwise modified from time to time.

 

“Bonus”
is defined in Section 5.6.

 

“Business
Day” means Monday through Friday of each week, except that a legal holiday
recognized as such by the government of the Seneca Nation of Indians, the
United States or the State of New York shall not be regarded as a Business Day.

 

“Casino
Hotel” means the Allegany 220 room hotel and casino with approximately
2,000 slot machines, restaurants, night club(s), bar(s), health club and spa,
pool(s), retail space, associated back-of-house support spaces and related site
work, to be constructed in Salamanca, New York as further described in Schedule 1.

 

“Change
of Law” means the enactment, adoption, promulgation, issuance,
modification, revision, change, repeal or cancellation after the date of this
Agreement of or to any Law, that prevents Construction Manager from performing
its obligations under this Agreement.

 

“Change
Order” is defined in Section 8.4.

 

“Completion”
is defined in Section 9.3.

 

“Completion
Certificate” shall have the meaning ascribed to it in Section 9.3.

 

 

“Completion
Date” is defined in Section 9.3.

 

“Construction
Manager” is defined in the Preamble.

 

“Construction
Manager Estimate” is defined in Section 8.3.

 

“Contract
Price” is defined in Section 5.2.

 

“Contractor”
means any Person, other than Construction Manager, performing all or any
portion of the Work, or performing any other services, or providing goods,
equipment, materials, supplies, or labor services related to the Work,
including contractors, subcontractors (and every tier of subcontractors),
vendors, suppliers, agents and representatives of Construction Manager, whether
hired by Construction Manager or by another Person hired by Construction
Manager.

 

“Costs”
means all verifiable, direct, out-of-pocket costs incurred by Construction
Manager in performing the Work, but shall not include any costs or expenses (i) for
general or overhead expenses of Construction Manager or (ii) that would
not have been incurred absent the bad faith, gross negligence, or willful
misconduct of Construction Manager or any Contactor.

 

“Damages”
is defined in Section 13.1(a).

 

“Data”
is defined in Section 3.4.

 

“Day”
means a period of twenty-four (24) consecutive hours beginning at 7:00 a.m.,
Central Time, or at such other hour as Construction Manager and Owner mutually
agree.

 

“Defect”
means any equipment, materials, tools, supplies, installation or other work
performed or provided by, or within the responsibility of Construction Manager
or any Contractors which (i) fails to conform to the Scope of Work or is
of improper or inferior workmanship; (ii) could reasonably be expected to
adversely effect the design or operation of the Casino Hotel; or (iii) otherwise
fails to meet the warranties set forth in Section 10.2.

 

“Delay
Liquidated Damages” is defined in Section 6.2(a).

 

“Event
of Default” or “Default” means the occurrence of any of the
following events, circumstances or conditions: (i) the failure by either
Party to perform or comply with any material agreement, covenant, obligation or
other provision contained in this Agreement when such failure has not been
remedied (after delivery of written notice thereof) within ten (10) Days; (ii) the
entry of either Party into voluntary or involuntary bankruptcy, receivership or
similar protective proceedings; or (iii) the inaccuracy or breach of any
material representation or warranty contained in Article X.

 

“Force
Majeure” is defined in Section 12.1.

 

“Governmental
Authority” means applicable tribal, national, state and local governments
and all agencies, authorities, departments, instrumentalities, courts,
corporations or the other subdivisions of each having or claiming a regulatory
interest in or jurisdiction over the Casino Hotel, the Work or the Parties

 

2

 

“Guaranteed
Completion Date” is defined in Section 6.1.

 

“Guaranteed
Maximum Price” is defined in Section 5.2.

 

“Hazardous
Materials” shall mean any hazardous materials, hazardous wastes, hazardous
constituents, hazardous or toxic substances, petroleum products (including
crude oil or any fraction thereof), defined or regulated as such under any
environmental Law.

 

“Invoice”
is defined in Section 5.3(a).

 

“Laws”
means the laws, rules, regulations, decrees and orders of the United States of
America, the Indian Nation and all other governmental bodies having relevant
jurisdiction, whether such now exist or hereafter come into effect.

 

“Loss”
or “Losses” means any actions, claims, settlements, judgments, demands,
liens, losses, damages, fines, penalties, interest, costs, expenses (including,
without limitation, expenses attributable to the defense of any actions or
claims), attorneys’ fees and liabilities related to the construction of the
Casino Hotel; provided, however, that as between the
Parties, the term Loss shall not include damages which one Party has waived or
released its right to seek from the other Party pursuant to Article XIII.

 

“Notice
to Proceed” is defined in Article IV.

 

“Notice
to Proceed Date” is defined in Article IV.

 

“Owner”
is defined in the Preamble.

 

“Owner
Directive” is defined in Section 8.5.

 

“Owner
Indemnified Party” is defined in Section 13.2(a).

 

“Party”
and “Parties” means, each of Owner and Construction Manager, individually
or collectively, as the context may require.

 

“Performance
Security” is defined in Article VII.

 

“Person”
means any individual or entity, including, without limitation, any corporation,
limited liability company, joint venture, joint stock company, general or
limited partnership, trust, agency, association, organization, government
authority (including any agency or administrative group thereof) or other
entity.

 

“Progress
Report” is defined in Section 5.3(e).

 

“Property”
means the areas designated by Owner for performance of the Work

 

“Repair”
(which shall also mean “Repairing”) is defined in Section 10.2(a).

 

“Retainage”
is defined in Section 5.5.

 

3

 

“Scope
of Work” is set forth on Schedule 1 (as may be amended pursuant
to the terms of this Agreement).

 

“Stated
Rate” means an annual rate of interest (compounded monthly) equal to the
lesser of (i) the sum of the one year LIBOR rate quoted in the Wall Street
Journal (or, in its absence, a similar publication) on the first Day of the
applicable month plus one percent (1%).

 

“Warranty
Period” is defined in Section 10.4.

 

“Work”
is defined in Section 2.2.

 

ARTICLE II.

CONSTRUCTION MANAGEMENT SERVICES

 

2.1           Appointment
as Construction Manager. Subject to the terms and conditions of this
Agreement, Owner hereby appoints Construction Manager to act hereunder as an
independent contractor to manage the construction of the Casino Hotel, and
Construction Manager hereby accepts such appointment and agrees to act pursuant
to the provisions of this Agreement. Construction Manager is an independent
contractor and agrees to maintain such status and relationship.  Neither Construction Manager nor any Manager
Indemnified Party shall be deemed to be the agents, representatives or
employees of Owner.  Nothing herein is
intended to, or shall be deemed to, create a partnership, joint venture, agency
or other relationship creating fiduciary or quasi fiduciary duties or similar
duties and obligations or otherwise subject the Parties to joint and several or
vicarious liability or to impose any duty, obligation or liability that would
arise therefrom with respect to either or both of the Parties.

 

2.2           Work
to be Performed. This Agreement is a turnkey contract and Construction
Manager’s obligation is to provide Owner with the Casino Hotel complete and in
full operating condition, completed in every detail according to the Scope of
Work within the time and schedules designated herein and for the purposes
designated herein by Owner, and to do and furnish everything necessary in
connection therewith, all on a total, fixed price basis as set forth
herein.  Without limiting the generality
of the foregoing, Construction Manager shall perform the Work set forth on Schedule 1
(the “Work”).

 

2.3           Use
of Contractors.

 

(a)           Schedule 2 sets forth certain items of the Work, and with respect to each such item
of Work, the Person(s) approved by Construction Manager and Owner to perform
such Work.  Schedule 2 may
not be modified without the prior written consent of Owner, such consent not to
be unreasonably withheld.  Construction
Manager is prohibited from subcontracting or assigning any of the Work, except
as approved by Owner and set forth on Schedule 2.  Upon Owner’s request, Construction Manager
shall cause a qualified representative of any Contractor to meet with Owner.

 

(b)           Approval
by Owner of any Contractor shall not relieve Construction Manager of any of its
obligations under this Agreement and Construction Manager shall, at all times,
be responsible for all of the Work, including all Work set forth on Schedule 2.  All Work
performed by a Contractor shall be pursuant to an appropriate written

 

4

 

agreement between Contractor
and Construction Manager.  All such Contractor contracts entered into by Construction Manager for any
portion of the Work shall:

 

(i)            conform to and require Contractor to perform in
accordance with the requirements, terms and conditions of this Agreement,

 

(ii)           be assignable to Owners upon Owner’s written
request,

 

(iii)          preserve and protect the rights of Owner under this
Agreement and with respect to the Work to be performed,

 

(iv)          require Contractor to provide and maintain adequate
insurance consistent its obligations related to this Agreement and the Work to
be performed, and

 

(v)           obligate Contractor to execute a waiver and release
with respect to any lien rights for each payment received by the such
Contractor for the Work.

 

ARTICLE III.

GENERAL OBLIGATIONS OF CONSTRUCTION MANAGER

 

3.1           Standard
of Performance. Construction Manager shall perform the Work and carry out
its other obligations hereunder, and shall require all of its employees,
Contractors, agents, materialmen and vendors furnishing labor, materials or
services in any way relating to this Agreement or affecting the Casino Hotel to
carry out their respective responsibilities in accordance with (a) the
terms of this Agreement, (b) safe, sound, efficient, workmanlike,
economically prudent, and environmentally sound practices, and (c) all
Laws, permits and licenses applicable to the Casino Hotel and the construction
thereof.

 

3.2           Construction
Manager’s Employees, Consultants and Contractors. Construction Manager
shall pay all expenses in connection with employing, retaining and supervising
other Persons necessary or appropriate for the performance of the Work,
including compensation, salaries, wages, overhead and administrative expenses
incurred by Construction Manager, and as applicable, FICA and Medicare taxes,
workers’ compensation insurance, retirement and insurance benefits and other
such expenses.  All services performed or
materials supplied by any Affiliate of Construction Manager shall be performed
or supplied at terms and rates that are reasonably competitive with the terms
and rates known to Construction Manager to be prevailing in the industry at the
time for the area of operations.

 

3.3           Payments
Pursuant to Agreements. Construction Manager shall promptly pay all
undisputed amounts due and payable to (a) all Contractors in accordance
with the terms of applicable Contractor contract and (b) any other third
Party providing goods or services in connection with the Work.

 

3.4           Ownership
and Custody of and Access to Data. Notwithstanding anything in this
Agreement to the contrary, Owner shall be the sole and exclusive owner of all
reports, filings, agreements, instruments and other documents (collectively, “Data”), whether prepared by

 

5

 

Construction Manager, Owner or
any other Person, including a Contractor, related to the Work and any such Data
shall be made available to Owner at Construction Manager’s office during
reasonable business hours on provision of reasonable notice. Within a
reasonable period of time after delivery of the Completion Certificate, or
immediately upon the termination of this Agreement, Construction Manager shall
deliver originals of all Data to Owner.

 

3.5           Inspection
and Rejection by Owner. Owner, and its designated representatives, shall
have the right to inspect all Work including, without limitation, testing,
inspection, repairs, construction, installation, removal of equipment, meetings
or other communications with any Person, or similar activities undertaken by
Construction Manager in connection with this Agreement.  Owner
shall have the right to reject, or to direct Construction Manager to reject, at
any time, any such portion of the Work, including any design, engineering,
materials, equipment, installation, tools or supplies, which in Owner’s reasonable
judgment does not conform to this Agreement, including the Work Scope, or which
contains Defects. Upon such rejection, Construction Manager shall promptly
remedy any condition identified by Owner as giving rise to such rejection.

 

3.6           Disclosure to
Owner.  Construction Manager
shall promptly notify Owner of any event, circumstance or condition known to
Construction Manager constituting or which reasonably could be expected to
constitute a material breach, violation of any Law, or default of any other
obligation of Owner of which Construction Manager has knowledge. Construction
Manager shall promptly notify Owner of any significant circumstance, event,
occurrence or condition (whether then existing or, in Construction Manager’s
opinion, expected to exist in the near future), including issues related to the
acquisition (including eminent domain proceedings) of rights of way and similar
matters.

 

3.7           Risk
of Loss. Until the earlier of the
Completion Date and the termination of this Agreement, Construction Manager
assumes risk of loss and full responsibility for the cost of replacing or
repairing the damage to the Casino Hotel and all materials, equipment, spare
parts, supplies and maintenance equipment (including temporary materials,
equipment and supplies) which are purchased by Construction Manager or Owner
for permanent installation in, or for use during construction of; the Casino
Hotel. It is contemplated that all material, equipment and supplies will
be owned by Owner and purchased or furnished for Owner’s account. Construction Manager shall assume such risk of
loss and full responsibility regardless of whether Owner has title to such
items under this Agreement (unless such loss or damage is a result of the gross
negligence or intentional misconduct of Owner or Owner’s agents during such
time as such agents are acting under Owner’s control, in which case Owner shall
be responsible for the amount of any deductibles under applicable insurance
policies); provided, however that such deductibles
shall not exceed (a) $250,000.00 in respect of each claim for earthquake
or flood damage and (b) $250,000.00 in respect of each other claim. Upon
the earlier of the Completion Date and the termination of this Agreement, risk
of loss and responsibility shall be assumed by Owner.

 

3.8           Construction
Budget. At least thirty (30)  Days
prior to the date scheduled for the Notice to Proceed Date, Construction
Manager shall submit to Owner for Owner’s approval a budget for the Work, which
budget amount shall not exceed the Guaranteed Maximum Price.

 

6

 

ARTICLE IV.

COMMENCEMENT OF WORK

 

Owner
shall issue to Construction Manager a written notice instructing Construction
Manager to commence the Work (the “Notice to Proceed”).
Upon receipt of the Notice to Proceed (the “Notice to
Proceed Date”), Construction Manager shall commence and
continuously and diligently pursue and perform the Work, in a manner and with
adequate resources to ensure compliance with the Guaranteed Completion Date,
the Construction Schedule set forth on Schedule 3, and
otherwise in compliance with this Agreement.

 

ARTICLE V.

ACCOUNTING AND COMPENSATION

 

5.1           Accounting
Records. Construction Manager shall keep complete and accurate records of
all costs, expenses and expenditures in connection with this Agreement. To the
extent necessary or appropriate to verify the amounts billed to Owner pursuant
to this Agreement, Owner or its designated representatives, after five (5) Days’
prior written notice to Construction Manager, shall have the right during
normal business hours to audit or examine, all books and records maintained by
Construction Manager relating to the construction of the Casino Hotel. Such
right shall include the right to meet with Construction Manager’s internal
auditors to discuss matters relevant to the audit or examination. Owner shall
have three (3) years after the termination of this Agreement to initiate
an audit of Construction Manager’s records for any Work performed or materials
provided during the term of this Agreement. 
Owner shall make every reasonable effort to conduct audits in a manner
which will result in a minimum of inconvenience to Construction Manager.

 

5.2           Contract
Price. For the performance of the Work during the term of this Agreement,
Owner agrees to pay Construction Manager, an amount equal to the Costs plus
four percent (4%) (the “Contract Price”);
provided, however, that the Contract
Price may in no event exceed $123,000,000.00 (the “Guaranteed
Maximum Price”).  The
Contract Price will be Construction Manager’s complete compensation for the
Work whether the Work are performed by Construction Manager’s personnel or by
Contractors.

 

5.3           Request
for Payment. No later than the tenth (10th) Day of each month,
Construction Manager shall submit to Owner a Request for Payment which shall
include:

 

(a)           an
invoice for the portion of the Contract Price incurred for the Work performed
during the previous month (or, if applicable, prior months in case of third
party invoices received during the previous month), if any, prepared in a form
reasonably acceptable to Owner and supported by records evidencing the actual
Costs incurred, minus the Retainage (an “Invoice”);

 

(b)           a
certification that (i) such Request for Payment represents the amount to
which Construction Manager is entitled to pursuant to the terms of this
Agreement; and (ii) Construction Manager has paid all amounts that are due
and owing to the Contractors, subject only to such disputed amounts as are
specified by Construction Manager in the Progress Report;

 

7

 

(c)           a
partial lien waiver in the form of Exhibit A from Construction
Manager ;

 

(d)           a
partial lien waiver in the form of Exhibit B from each Contractor;
and

 

(e)           a
progress report (a “Progress Report”)
which shall be in such form as may reasonably be requested by Owner, and which
shall include, without limitation:

 

(i)            a description of the Work performed during the prior month;

 

(ii)           a description of the Work to be performed during the next month and an
estimate of the Costs to be incurred in connection with such Work;

 

(iii)          a list of all Change Orders approved as of the end of the prior month;

 

(iv)          a discussion of any problems encountered during the prior month and
remedies effected or planned; and

 

(v)           a description of any payment or other disputes with any Contractors or
Governmental Authorities.

 

Additional
Progress Reports.  Owner shall be immediately notified upon, but
no later than one (1) Business Day from, Construction Manager’s knowledge
of any specific change from a previously issued Progress Report.

 

5.4           Payments.
Owner shall pay to Construction Manager the full undisputed amount of each
Invoice within thirty (30) Business Days of receipt of each such Invoice. If
Owner fails to make timely payments of any Invoice amount, or portion thereof,
then Construction Manager shall be entitled to collect such unpaid undisputed
amount, together with interest at the Stated Rate on any unpaid undisputed
amount. If Owner’s failure to pay is a result of a good faith dispute of any
Invoice amount, then interest will be payable only on the unpaid portion that
is found or agreed by the Parties to be ultimately due. Interest shall accrue
on unpaid amounts for the period beginning on the payment due date of the
applicable Invoice and ending upon payment of such amount (together with the
interest thereon). Payment and failure to object to all or any portion of an
Invoice amount shall not be construed as an acceptance of defective Work or a
waiver of any right under this Agreement by Owner.

 

5.5           Retainage.
To secure Construction Manager’s performance of its obligations hereunder, the
Company will withhold an amount equal to ten percent (10%) of the Contract
Price (the “Retainage”) from each payment
paid to Construction Manager by Owner (other than the final payment).  In the event that amounts are due under this
Agreement from Construction Manager to Owner, and such amounts are not paid
when due, Owner shall have the right to withhold additional amounts from Owner’s
payments to Construction Manager equal to the amount owing by Construction
Manager.

 

5.6           Bonus.  In the event the total Cost for constructing
the Casino Hotel under this Agreement is less than the Guaranteed Maximum
Price, Construction Manager shall be entitled to a bonus equal to fifty percent
(50%) of the difference between the Guaranteed Maximum Price

 

8

 

and the sum of: (a) all
payments made to Construction Manager under this Agreement, (b) any
Buy-Down Amounts paid by Construction Manager to Owner, and (c) any
payments to third parties that directly resulted from a Construction Manager
Event of Default (the “Bonus”).

 

5.7           Final
Payment. Upon completion of the Casino Hotel, Construction Manager shall
submit a final Request for Payment which shall set forth all amounts due and
remaining unpaid to Construction Manager, including the Retainage and the
Bonus, if any, and such amounts shall be paid by Owner within ninety (90)
Business Days of Owner’s receipt of the final Request for Payment.

 

5.8           Certain
Conduct. Notwithstanding any other provision herein, Owner shall not be
required to pay or reimburse Construction Manager for (a) any additional
costs and expenses that would not have been incurred absent the bad faith,
gross negligence, or willful misconduct of Construction Manager or (b) claims
for non-payment of any and all contributions, withholding deductions or taxes
measured by the wages, salaries or compensation paid to Persons employed by Construction
Manager in connection herewith.

 

5.9           Taxes.  Construction Manager shall pay and be responsible
for all taxes of any kind, including sales, use, excise, unemployment, income
taxes and any and all other taxes on any item or service that is part of the
Work, whether such tax is normally included in the price of such item or
service or is normally stated separately and any other taxes imposed by any
Governmental Authorities on any equipment, materials, labor and services
furnished by Construction Manager or its Contractors, or otherwise arising out
of Construction Manager’s performance of the Work, including any increases in
any such taxes during the term of this Agreement; and any duties, fees, and
royalties imposed with respect to any equipment, materials, labor or services.

 

ARTICLE VI.

GUARANTEES AND DELAY LIQUIDATED DAMAGES

 

6.1           Guarantee.
Construction Manager guarantees that it shall achieve Completion not later than
November 1, 2006, as such guaranteed date may be adjusted pursuant to this
Agreement (the “Guaranteed Completion Date”).

 

6.2           Liquidated
Damages for Delay.

 

(a)           Construction
Manager understands that if Completion is not achieved by the Guaranteed
Completion Date, Owner will suffer substantial damages.  Therefore, Construction Manager agrees that
if Completion is not achieved by the Completion Date, Construction Manager
shall pay Owner as liquidated damages $100,000.00 per Day, for each Day or part
thereof by which Completion is delayed beyond the Guaranteed Completion Date,
commencing on the date following the Guaranteed Completion Date and ending on
the Completion Date (the “Delay Liquidated
Damages”).  All Delay
Liquidated Damages shall be paid by Construction Manager to Owner no later than
fifteen (15) Business Days following Owner’s invoice therefore, for any Delay
Liquidated Damages that have accrued during the preceding Month.

 

9

 

(b)           Construction
Manager and Owner agree that the Delay Liquidated Damages are liquidated
damages, and in the circumstance that they are payable: (i) it would be
extremely difficult to determine the actual damages of Owner, (ii) the
agreed liquidated damages are a fair and reasonable estimate of the actual
damages that would be suffered by Owner; (iii) in no event shall the
amount of any such agreed-upon liquidated damages constitute a penalty for
Construction Manager, and (iv) they are the sole remedy for the
delay.  Construction Manager hereby
waives, to the extent permitted by applicable law, any defense as to the
validity of any agreed-upon liquidated damages in this agreement on the grounds
that such liquidated damages are void as penalties.

 

ARTICLE VII.

PERFORMANCE SECURITY

 

To
secure Construction Manager’s performance of its obligations hereunder, on or
before the date of execution and delivery of this Agreement, Construction
Manager shall furnish Owner with the Performance Security in the form of Exhibit C
(the “Performance Security”).  Construction Manager shall cause the
Performance Security to remain in full force and effect until all of
Construction Manager’s obligations under this Agreement have been completed to
the satisfaction of Owner.

 

ARTICLE VIII.

CHANGES

 

8.1           General.
Except as set forth in Section 8.5, no change or adjustment to the
Guaranteed Maximum Price or the Guaranteed Completion Date will be valid except
as agreed to by the Parties in accordance with a duly issued Change Order
executed in writing by Owner and Construction Manager. All such changes shall
be made in accordance with this Article VIII and shall be
considered, for all purposes of this Agreement, as part of the Work and shall
not affect the validity of this Agreement.

 

8.2           Minor
Modifications. Minor modifications or adjustments that involve no price or
time adjustment and do not affect the Work to be provided by Construction
Manager (or the performance thereof) as specified in this Agreement may be made
by Construction Manager and shall not require a Change Order; provided, however, that Construction Manager shall notify
Owner thereof in writing and Owner shall provide its prior written consent
(which may be withheld at its sole discretion) prior to Construction Manager’s
effecting any such modification.

 

8.3           Owner
Directed Change Order. Owner, at any time or from time to time, may direct
a change in the Work, including the Scope of Work, by issuing a Change Notice
to Construction Manager. Within five (5) Business Days of receipt of such
notice, Construction Manager shall prepare and deliver to Owner a detailed
written estimate (the “Construction Manager
Estimate”) relating to the contemplated change, which shall
include:

 

(a)           any
proposed change in the Guaranteed Maximum Price resulting from such change;

 

(b)           any
effect such change could be expected to have on the Guaranteed Completion Date;

 

10

 

(c)           any
potential effect of such change on Construction Manager’s ability to comply
with any of its obligations hereunder; and

 

(d)           documentation
reasonably sufficient to enable Owner to evaluate the impact which Construction
Manager estimates the Change Order will have on the Guaranteed Maximum Price,
the Guaranteed Completion Date and any other provision of this Agreement
affected thereby, as the case may be.

 

8.4           Change
Orders. Owner shall review Construction Manager Estimate and if the Parties
reach agreement on the matters listed in Construction Manager Estimate, Owner
and Construction Manager shall execute an amendment to this Agreement which
reflects the nature of such agreement (a “Change Order”),
in the form set forth in Exhibit D.

 

8.5           Owner’s
Directive. In the event Owner and Construction Manager are unable to agree
with respect to a Construction Manager Estimate and the change in the Work
described in the Change Notice is not technically impossible or illegal to
implement and Owner has determined that it is in the best interests of the
Casino Hotel to implement the proposed change, then Owner may direct
Construction Manager in a written notice to proceed in accordance with the proposed
change (an “Owner Directive”) and
Construction Manager shall perform the Work as modified by the Owner Directive.
In the event that Owner issues an Owner Directive, then Construction Manager
may modify the Guaranteed Maximum Price and/or the Guaranteed Completion Date
to the extent appropriate, as follows:

 

(a)           Guaranteed
Maximum Price Adjustment. To the extent the
change requested in Owner Directive would cause the Contract Price to exceed
the Guaranteed Maximum Price due to an increase in Construction Manager’s costs
for additional Work or materials, then the Guaranteed Maximum Price may be
adjusted upward by an amount equal to the Costs attributable to the change,
plus four percent (4%).

 

(b)           Guaranteed
Completion Date Adjustment. To
the extent the change requested in Owner Directive adversely affects
Construction Manager’s ability to complete the Work by the Guaranteed
Completion Date, and such effect could not be avoided or mitigated by
Construction Manager’s reasonable efforts, then Construction Manager may be
entitled to an equitable adjustment of the Guaranteed Completion Date on a
Day-for-Day basis (or part thereof) for the impact of such change on
Construction Manager’s performance of the Work.

 

8.6           Construction
Manager Requested Change Order.

 

(a)           Construction
Manager may submit a request for a Change Order with respect to:

 

(i)            a Force Majeure Event; or

 

(ii)           a Change of Law, unless such Change of Law is due to an act or omission of
Construction Manager.

 

11

 

(b)           Construction
Manager shall use reasonable efforts to mitigate the adverse effects of any
Force Majeure Event or a Change of Law that is the subject of a Change Order
request. No such event shall excuse Construction Manager’s continuing obligation
to perform the Work, as affected by such event, while such request is pending,
except as set forth in Article XII or if cessation of performance
is required by a Governmental Authority.

 

(c)           Any
Change Order request under this Section 8.6 shall be processed in
accordance with Sections 8.3 and 8.4; provided,
however, that no notice from Owner shall be required and
Construction Manager’s Change Order request shall include the detailed written
estimate relating to the requested change that is required by Section 8.3,
without the need for Owner to request same.

 

8.7           General
Requirements and Limitations.

 

(a)           No
addition, deletion, comment, modification or amplification by Owner to the Work
shall require a Change Order, an increase in the Guaranteed Maximum Price or an
extension of the Guaranteed Completion Date, in each case, if such addition,
deletion, comment, modification or amplification is for the purpose of curing a
Construction Manager Defect or is required in connection with a Construction
Manager Event of Default.

 

(b)           Notwithstanding
any dispute, Construction Manager shall be required to implement any Owner
Directive and in no event shall any disputes related to a change, a proposed
Change Order or a Owner Directive entitle Construction Manager to stop, delay
or suspend the performance of the Work.

 

ARTICLE IX.  

COMPLETION

 

9.1           Final
Request for Payment. Upon Completion of the Casino Hotel, Construction
Manager shall submit to Owner a final Request for Payment, which shall include:

 

(a)           the
final Invoice;

 

(b)           original
copies of permits, licenses and other authorizations to the extent that such
items are provided to Construction Manager;

 

(c)           a Final
Lien Waiver from Construction Manager in the form of Exhibit E;

 

(d)           Final
Lien Waivers from each Contractor in the form of Exhibit F; and

 

(e)           a
Completion Certificate which shall include:

 

(i)            a statement that Construction Manager’s construction obligations with
respect to Casino Hotel are complete;

 

12

 

(ii)           a statement that all amounts due from Construction Manager to Owner,
including, without limitation, all Delay Liquidated Damages or Buy-Down
Amounts, if any, have been paid in full;

 

(iii)          a statement that no Construction Manager Event of Default shall have
occurred and be continuing;

 

(iv)          representations and warranties that Construction Manager has obtained all
permits, licenses and other authorizations necessary or appropriate for the
construction of the Casino Hotel (other than those obtained by Owner) and that
such authorizations are in full force and effect;

 

(v)           representations and warranties that the Casino Hotel is free and clear of
all liens, security interests, or other encumbrances upon Owner’s title arising
by virtue of the actions or inactions of Construction Manager or its
Contractors or other representatives arising from or related to the Work; and

 

(vi)          representations and warranties that Construction Manger has paid all
amounts due, or which may become due, to all Contractors.

 

9.2           Buy-Down.  Contemporaneously with Owner’s review of the
Work and the Casino Hotel, Construction Manager and Owner shall together
identify any and all items of work that Owner and Construction Manager mutually
agree require completion or contain a defect, the omission of which would not
adversely affect the operation of the Casino Hotel but which must be completed
to achieve Completion (the “Buy-Down Items”)
and a respective value for each Buy-Down Item. 
Owner may, in its sole discretion, require that Construction Manager pay
to Owner an amount equal one hundred and fifty percent (150%) of the value
specified for certain Buy-Down Items in lieu of completing such Buy-Down Items
in order to achieve Completion in accordance with Section 9.3.

 

9.3           Completion.  Upon Owner’s (a) determination that the
Casino Hotel has been completed in accordance with the Scope of Work, and
otherwise in accordance with the terms of this Agreement; (b) approval of
the form of Completion Certificate submitted by Construction Manager (the “Completion Certificate”); and (c) receipt
of the full payment for the Buy-Down Items, if any; an authorized
representative of Owner will sign the evidencing Owner’s acceptance that the
Casino Hotel has been completed in accordance with the terms of this Agreement
(“Completion”).  The “Completion Date”
shall be the date on which the Completion Certificate is duly executed and
delivered by Owner.  Owner’s execution of
the Completion Certificate shall not limit, waive or otherwise affect any right
or remedy Owner may have pursuant to this Agreement, any Law or otherwise,
including any right Owner may have against Construction Manager for failure to
perform the Work in accordance with the terms of this Agreement. Upon receipt
of final payment, Construction Manager will assign to Owner all permits,
licenses and title to any materials used and paid for by Owner in the
construction of the Casino Hotel that were in the name of Construction Manager.

 

13

 

ARTICLE X.

REPRESENTATIONS AND WARRANTIES

 

10.1         General
Representations and Warranties.  Each
Party represents and warrants to the other Party that on and as of the date
hereof:

 

(a)           it is
duly formed and validly existing and in good standing under the laws of its state
or jurisdiction of formation, with power and authority to carry on the business
in which it is engaged and to perform its respective obligations under this
Agreement;

 

(b)           the
execution and delivery of this Agreement have been duly authorized and approved
by all requisite corporate, limited liability company, partnership or similar
action;

 

(c)           it has
all the requisite corporate, limited liability company, partnership or similar
power and authority to enter into this Agreement and perform its obligations
hereunder;

 

(d)           the
execution and delivery of this Agreement do not, and the consummation of the
transactions contemplated herein will not, violate any of the provisions of the
organizational documents of such party, any agreement pursuant to which such party
or its property is bound or, to its knowledge, any applicable Laws; and

 

(e)           this
Agreement is valid, binding and enforceable against such party in accordance
with its terms, subject to bankruptcy, moratorium, insolvency and other Laws
generally affecting creditors’ rights and general principles of equity (whether
applied in a proceeding in a court of law or equity).

 

10.2         Warranties
Related to the Work.

 

(a)           Construction
Manager represents, warrants and agrees as follows: (i) all equipment and
materials shall (A) be new unless otherwise specified in the Scope
Document, (B) be free from any charge, encumbrance, lien or other security
interest and (C) conform to the specifications and description set forth
in this Agreement; (ii) the Work will be of high quality, free from
Defects and in specific conformity with this Agreement; (iii) the Work
will be performed and the Casino Hotel will be constructed in accordance with
the requirements of this Agreement. 
Construction Manager shall be required to repair, correct, refinish, or
if insufficient, to re-perform the Work (including removal and replacement),
and generally take or cause to be taken such action as may be required, to
fully remedy (“Repair”) any
Defects discovered during the term of this Agreement at no cost to the
Company.  The Cost of Repairing any
Defect shall not be part of the Contract Price.

 

(b)           Upon
notice by Owner to Construction Manager of any Defect, Construction Manager
shall Repair such Defect or cause such Defect to be Repaired.  Construction Manager shall Repair, or cause
to be Repaired, any such Defect, promptly after receipt of Owner’s notice; provided, however, that no such notice shall be required

 

14

 

in the event of a Defect discovered by Construction
Manager or any Contractor (notice of which Defect shall promptly be given to
Owner).

 

(c)           Construction
Manager shall, at all times during the Warranty Period, maintain sufficient
personnel to respond promptly to Owner’s request for warranty work.  In the course of Repairing any Defects,
Construction Manager shall do so in good faith coordination with the Casino
Hotel’s schedule of operations so as to minimize any adverse effect on the
operations of the Casino Hotel.

 

10.3         Contractor
Warranties.  Construction Manager
shall obtain for Owner commercially available warranties from all Contractors.
Such warranties shall extend for not less than the Warranty Period and shall
obligate the respective Contractors to Repair any Defects in the Work in
substantially the same manner and on terms and conditions substantially similar
to those contained herein.  During the
term of this Agreement and the Warranty Period Construction Manager shall be
responsible at its own expense for enforcing all Contractor warranties.

 

10.4         Warranty
Period.  Construction Manager’s
warranty obligations and liabilities under this Article X shall
commence on the Completion Date and shall cease upon the expiration of the
period ending eighteen (18) months after the Completion Date (the “Warranty Period”). The Warranty
Period for any Work required to be Repaired under this Article X
shall be extended for a period of eighteen (18) months after the date of
completion of such remedy.

 

ARTICLE XI.

TERMINATION

 

11.1         Term.
Unless terminated in accordance with Section 11.2, this Agreement
shall become effective on and as of the date hereof and shall continue in
effect through the Warranty Period.

 

11.2         Termination.
This Agreement may be terminated or canceled prior to the end of the Warranty
Period:

 

(a)           at any
time, during an ongoing Event of Default which was not cured during the
applicable cure period and which has not been waived by the non-defaulting
Party upon the delivery of a notice of termination by the non-defaulting Party
to the defaulting party;

 

(b)           at any
time, by mutual written agreement of the Parties; or

 

(c)           at any
time, by Owner, in its sole discretion upon thirty (30) Days notice to
Construction Manager.

 

11.3         Effects
of Termination. Termination or cancellation of this Agreement shall not
relieve the Parties from any obligation accruing or accrued to the date of such
termination or deprive the Party not in Default of any remedy otherwise
available to such Party.  In the event
this Agreement is terminated by Owner pursuant to Section 9.2(d) above,
Owner shall pay Construction Manager (a) the payments, without reduction
for retainage, owed as of the date of termination for Work completed, (b) the
Retainage retained from each payment previously made,

 

15

 

and (c) Construction
Manager’s costs reasonably incurred incident to the termination, including
actual and reasonable Contractor cancellation costs.

 

ARTICLE XII.

FORCE MAJEURE

 

12.1         Suspension
of Obligations. Neither Party shall be liable to the other Party for
failure to perform any of its obligations under this Agreement to the extent
such performance is hindered, delayed or prevented by Force Majeure. For
purposes of this Agreement, “Force Majeure” shall mean causes, events or
circumstances which are beyond the reasonable control of the Party claiming
Force Majeure which cause such Party’s performance hereunder to be hindered,
delayed or prevented. Such causes or events shall include, without limitation,
acts of God, war (declared or undeclared), insurrections, hostilities, riots,
lockouts, strikes, labor disputes, floods, fire, or hurricanes. Notwithstanding
anything in this Agreement to the contrary, a claim of Force Majeure shall not
extend or otherwise enlarge the term of this Agreement.

 

12.2         Notice.
A Party which is unable, in whole or in part, to carry out its obligations
under this Agreement due to Force Majeure shall promptly give written notice to
that effect to the other Party stating in reasonable detail the circumstances
underlying such Force Majeure.

 

12.3         Resolution.
A Party claiming Force Majeure shall diligently use all reasonable efforts to
remove the cause, event or circumstance of such Force Majeure, shall promptly
give written notice to the other Party of the termination of such Force Majeure
and shall resume performance of any suspended obligation as soon as reasonably
possible after termination of such Force Majeure; provided,
however, that neither Party shall be required to settle a labor
dispute against its own best judgment.

 

ARTICLE XIII.

INDEMNITY

 

13.1         Damages.

 

(a) As
used in this Article XIII, the term “Damages”
shall mean any and all (i) obligations; (ii) liabilities; (iii) compensatory
damages (including, but not limited to, damages for injury to or death of
persons and damages to or destruction or loss of property); (iv) to the
limited extent permitted under Section 13.1(b), punitive, indirect,
special, consequential, incidental and exemplary damages; (v) costs,
losses, liabilities, damages, and expenses in any way associated with the
containment, removal, or remediation of environmental (as to all media)
pollution or contamination pursuant to any current, past, or future federal,
state, or local laws, rules, permits, regulations, orders or ordinances; (vi) fines;
(vii) penalties; (viii) losses; (ix) actions; (x) suits; (xi)
claims; (xii) judgments, orders, directives, injunctions, decrees or awards of
any federal, state, or local court or administrative or governmental authority,
bureau or agency; and (xiii) costs and expenses (including, but not limited to,
reasonable attorney’s fees) incurred in the defense of any of the foregoing.

 

(b)           AS BETWEEN THE PARTIES, NOTWITHSTANDING ANYTHING TO THE CONTRARY IN
THIS AGREEMENT, A PARTY’S DAMAGES

 

16

 

RESULTING
FROM A BREACH OR VIOLATION OF ANY REPRESENTATION, WARRANTY, COVENANT, AGREEMENT
OR CONDITION CONTAINED HEREIN OR ANY ACT OR OMISSION ARISING FROM OR RELATED TO
THIS AGREEMENT SHALL BE LIMITED TO ACTUAL DIRECT DAMAGES AND SHALL NOT INCLUDE
ANY OTHER DAMAGES, INCLUDING, WITHOUT LIMITATION, INDIRECT, SPECIAL,
CONSEQUENTIAL, INCIDENTAL, EXEMPLARY OR PUNITIVE DAMAGES AND EACH PARTY
EXPRESSLY RELEASES THE OTHER FROM ALL SUCH CLAIMS FOR DAMAGES OTHER THAN ACTUAL
DIRECT DAMAGES.

 

(c)           Except
as otherwise expressly limited herein, it is the intent of the Parties that all
release and indemnity obligations in this Article XIII be without
monetary limit and without regard to the cause or causes thereof, including
without limitation, the simple negligence (joint, several, active, passive,
sole or concurrent) of the releasee. Except otherwise expressly provided for in
this Article XIII, a Party’s obligation to indemnify and hold the
indemnified Parties harmless against liability as provided for herein shall
apply to liability based, in whole or in part, upon any and all theories of law
including, without limitation by designation, liability based upon:  (i) any negligent act, grossly negligent
act, or omission; (ii) strict liability; (iii) breach of warranty
arising out of the alleged supplying of a defective or unreasonably dangerous
product; or (iv) noncompliance with any law, rule, regulation, order,
permit or policy.

 

13.2         Indemnity.

 

(a)           Without limiting other rights and remedies of Owner
under this Agreement, to the fullest extent permitted by law, Construction Manager does hereby
assume liability for, and does hereby agree to indemnify, protect and defend,
save and hold harmless Owner and its respective employees, affiliates,
successors, assigns, agents, officers and directors, and anyone else acting for
or on behalf of any of the foregoing Persons (each, an “Owner Indemnified Party”) from and
against any and all Damages that may
be imposed on, suffered or incurred by, or asserted against, any Owner
Indemnified Party, that arise out of, or result from, events or circumstances
in any way related to, or arising out of:

 

(i)            Construction Manager’s (or any Contractor’s) fraud, negligence,
intentional act or omission, willful misconduct or breach of Law relating to
the Work, the Casino Hotel and/or this Agreement;

 

(ii)           design, materials, engineering, construction or
workmanship of Construction Manager or any Contractor or the execution of the
Work;

 

(iii)          breach of this Agreement by Construction Manager;

 

(iv)          any third-party claims (including lien claims)
relating to the Work, the Property, and/or this Agreement;

 

(v)           losses and liabilities arising from any legal
obligation that Owner may have, in Owner’s sole discretion, to withhold amounts
from, or

 

17

 

deduct any tax at the source
from, payments due to Construction Manager (which in each case shall be treated
as paid to Construction Manager for purposes of this Agreement) or the
assertion of any tax payable by Construction Manager or any Contractor against
Owner;

 

(vi)          the performance of the Work under any workers’
compensation, disability or similar benefit act;

 

(vii)         the vitiation of any insurance policies due to
Construction Manager’s or any Contractor’s breach of warranty, declaration or
condition contained in any insurance policy, including the provision of false
and misleading information;

 

(viii)        any amount that Construction Manager shall have failed to pay to any Contractor
as compensation for the performance of any Work, and Construction Manager shall
assume the defense of any suit or proceeding in connection therewith;

 

(ix)           any and all claims against Owner by any employee of
Construction Manager or any Contractor or by anyone directly or indirectly
employed by Construction Manager or any Contractor or anyone for whose acts
Construction Manager or any Contractor may be liable; and

 

(x)            any release of a Hazardous Material that occurred
subsequent to the Notice to Proceed Date and during the term of this Agreement
which is a violation of an environmental Law, applicable to and binding upon
Construction Manager or any Contractor or Construction Manager’s agents or
employees, or

(ii) off-site treatment, storage, or disposal, or cleanup or remediation
associated therewith, of Hazardous Materials which originated from the Property
subsequent to the Notice to Proceed Date.

 

(b)           Construction
Manager shall require all Contractors to identify, defend, and hold harmless
the Owner Indemnified Parties and Construction Manager from and against all
Damages, including but not limited to, claims for personal injury or death of
any Contractor employees, arising out of the Work performed by any such
Contractor, and whether or not resulting from the sole, joint or concurrent
negligence of any Owner Indemnified Party or Construction Manager. Construction
Manager shall not have the right to waive or alter any of the requirements of
this Section 13.2(b).

 

13.3         Claims.

 

(a)           Whenever
any claim shall arise for indemnification hereunder, the indemnified party
shall promptly notify the indemnifying party of the claim and, when known, the
facts constituting the basis for such claim, except that in the event of any
claim for indemnification hereunder resulting from or in connection with any
claim or legal proceedings by a third party, except as otherwise expressly
provided in Article XIII

 

18

 

such notice shall specify, if known, the amount or
an estimate of the amount of the liability asserted by such third party.

 

(b)           In
connection with any claim giving rise to indemnity hereunder resulting from or
arising out of any claim or legal proceeding by a person who is not a Party,
the indemnifying Party, may, upon written notice to the indemnified Party,
assume the defense of any such claim or legal proceeding. Except with the
consent of the indemnified Party, the indemnifying Party shall not consent to
the entry of any judgment arising from any such claim or legal proceedings
which, in each case, does not include as an unconditional term thereof of the
giving by the claimant or the plaintiff to the indemnified Party of a release
from all liability in respect thereof, unless the indemnifying Party has
actually paid to the indemnified Party the full amount of such judgment
settlement. Any indemnified Party shall be entitled to participate in (but not
control) the defense of any such claim or litigation resulting therefrom. If
the indemnifying Party does not elect to control the litigation as provided
above, the indemnified Party may defend against such claim or litigation in
such manner as it may deem appropriate, including, but not limited to, settling
such claim or litigation, after giving notice of the same to the indemnifying
Party, on such terms as such indemnified Party may deem appropriate, and the
indemnifying Party shall promptly reimburse the indemnified Party. All
indemnification hereunder shall be effected by payment of cash or delivery of a
certified or official bank check in the amount of the indemnification
liability.

 

(c)           To the
extent Construction Manager or a Owner Indemnified Party elects not to pursue
any legal remedies it has against other Persons, but relies on the indemnities
provided for in this Agreement, Construction Manager or Owner Indemnified Party
will assign its legal remedies to the maximum extent allowed by law to Owner or
Construction Manager, as appropriate.

 

13.4         Insurance.

 

(a)           Construction
Manager, without limiting its obligations or liabilities hereto, shall obtain
and maintain the following insurance with limits not less than those indicated.
Construction Manager shall procure a waiver of subrogation in favor of Owner or
any other Owner Indemnified Party or any other person to the extent indemnified
by Construction Manager and name Owner as an additional insured with regard to Section 13.3(d).

 

(i)            Workers’ Compensation Insurance covering all employees engaged in the Work
hereunder in accordance with the statutory requirements of the jurisdiction in
which such services are to be performed.

 

(ii)           Employer’s Liability Insurance with limits not less than one million
dollars ($1,000,000.00) for each accident or death of an employee engaged in
Work hereunder.

 

19

 

(iii)          Automobile Liability insurance covering all motor vehicles owned or leased
by Construction Manager engaged in the performance of Work hereunder. Limits of
liability shall not be less than one million dollars ($1,000,000.00) for the
accidental injury to or death of one or more persons or damage to or
destruction of property as a result of one accident.

 

(b)           Except
as otherwise specifically requested and approved by the Parties, no other
insurance shall be carried by Construction Manager for the benefit of Owner.

 

(c)           Construction
Manager shall require all Contractors employed by it under this Agreement to
obtain the insurance identified in Schedule 4.  If any proposed written agreement contains
language different than what is contained in Schedule 4,
Construction Manager shall submit the proposed insurance language to Owner for
review and approval.

 

ARTICLE XIV.

MISCELLANEOUS

 

14.1         Entire
Agreement. This Agreement, together with the Exhibits and Schedules hereto
and the certificates, documents, instruments and writings that are delivered
pursuant hereto, constitutes the entire agreement
and understanding of the Parties in respect of the subject matter hereof and
supersedes all prior understandings, agreements or representations by or among
the Parties, written or oral, to the extent they relate in any way to the
subject matter hereof.  To the extent of
any ambiguity, inconsistency or conflict between the body of this Agreement and
any of the exhibits, schedules and the like attached hereto, the terms of the
body of this Agreement shall prevail.

 

14.2         Amendment
and Modification. No modifications of the terms and provisions of this
Agreement shall be or become effective except by the execution by each of the
Parties of a supplementary written agreement.

 

14.3         Counterparts.
This Agreement may be executed in multiple counterparts, each of which, when
executed, shall constitute but one and the same instrument.

 

14.4         Parties
Bound by Agreement. This Agreement shall be binding upon and shall inure to
the benefit of the Parties and their respective successors and assigns.

 

14.5         Construction.
This Agreement has been freely and fairly negotiated between the Parties.  If an ambiguity or question of intent or
interpretation arises, this Agreement will be construed as if drafted jointly
by the Parties and no presumption or burden of proof will arise favoring or
disfavoring any Party because of the authorship of any provision of this
Agreement.  Any reference to any Law will
be deemed also to refer to such Law as amended and all rules and
regulations promulgated thereunder, unless the context requires otherwise.  The words “include,” “includes,” and “including”
will be deemed to be followed by “without limitation.” Pronouns in masculine,
feminine, and neuter genders will be construed to include any other gender, and
words in the singular form will be construed to include the plural and vice
versa, unless the context otherwise requires. The words “this Agreement,” “herein,”
“hereof,” “hereby,” “hereunder,” and words of similar import refer to this
Agreement as a whole and not to any 

 

20

 

particular subdivision unless
expressly so limited.  The Parties intend
that each representation, warranty, and covenant contained herein will have
independent significance. If any Party has breached any representation,
warranty, or covenant contained herein in any respect, the fact that there
exists another representation, warranty or covenant relating to the same subject
matter (regardless of the relative levels of specificity) which the Party has
not breached will not detract from or mitigate the fact that the Party is in
breach of the first representation, warranty, or covenant.

 

14.6         Time
of the Essence. Time is of the essence in the performance of this
Agreement.

 

14.7         Governing
Law. This Agreement shall in all respects be governed by and construed in
accordance with the laws of the Seneca Nation of Indians including all matters
of construction, validity and performance, without giving effect to any choice
of law rules thereof which may direct the application of the laws of
another jurisdiction.

 

14.8         Notices.
Unless specifically provided in this Agreement, any written notice or other
communication shall be deemed given when received by the Party entitled to
notice. Notices shall be directed as follows:

 

	
  (a)

  	
   

  	
  if to
  Construction Manager, to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Seneca Construction Management Corporation

  
	
   

  	
   

  	
  Attn: Clayton Seneca, President & CEO

  
	
   

  	
   

  	
  310 Fourth Street

  
	
   

  	
   

  	
  Niagara Falls, New York 14303

  
	
   

  	
   

  	
  Telephone: (716)          
  -           

  
	
   

  	
   

  	
  Facsimile: (716)          
  -           

  

 

	
  (b)

  	
   

  	
  if to
  Owner, to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Seneca Territory Gaming Corporation

  
	
   

  	
   

  	
  Attn: Office of the General Counsel

  
	
   

  	
   

  	
  310 Fourth Street

  
	
   

  	
   

  	
  Niagara Falls, New York 14303

  
	
   

  	
   

  	
  Telephone: (716) 299-1100

  
	
   

  	
   

  	
  Facsimile: (716) 299-1200

  

 

In like
manner either Party may change the address to which notices to it should be
directed.

 

14.9         Further
Assurances. Subject to the terms and conditions set forth in this
Agreement, each of the Parties agrees to use all reasonable efforts to take, or
to cause to be taken, all actions, and to do, or to cause to be done, all
things necessary, proper or advisable under applicable Laws to consummate and
make effective the transactions contemplated by this Agreement.  In case, at any time after the execution of
this Agreement, any further action is necessary or desirable to carry out its
purposes, the proper officers or directors of the Parties shall take or cause
to be taken all such necessary action.

 

21

 

14.10       Survival
of Representations, Warranties, Covenants and Agreements. The
representations, warranties, covenants and agreements given by the Parties
including in particular the terms and conditions of Article XIII
shall survive this Agreement without regard to any action taken pursuant to
this Agreement.

 

14.11       Severability.
The provisions of this Agreement will be deemed severable and the invalidity or
unenforceability of any provision will not affect the validity or
enforceability of the other provisions hereof; provided that if any provision
of this Agreement, as applied to any Party or to any circumstance, is
judicially determined not to be enforceable in accordance with its terms, the
Parties agree that the court judicially making such determination may modify
the provision in a manner consistent with its objectives such that it is
enforceable, and/or to delete specific words or phrases, and in its modified
form, such provision will then be enforceable and will be enforced.

 

14.12       Assignment.
Construction Manager may not assign either this Agreement or any of its rights,
interests or obligations hereunder without the prior written approval of Owner,
and any such assignment by a party without prior written approval of Owner will
be deemed invalid and not binding on Owner.

 

14.13       Waivers.
No Waiver of any of the terms and
conditions of this Agreement shall be effective unless in writing and signed by
the Party against whom such waiver is sought to be enforced.  Any waiver of the terms hereof shall be
effective only in the specific instance and for the specific purpose
given.  The failure of a Party to insist,
in any instance, on the strict performance of any of the terms and conditions
hereof shall not be construed as a waiver of such Party’s right in the future
to insist on such strict performance.

 

14.14       Cumulative
Rights, Obligations and Remedies. Except as expressly provided herein, the
rights, obligations and remedies created by this Agreement are cumulative and
in addition to any other rights, obligations or remedies otherwise available at
law or in equity.

 

14.15       No
Third Party Beneficiaries. This Agreement is for the sole and exclusive
benefit of the Parties. Except as expressly provided herein to the contrary,
nothing herein is intended to benefit any other Person not a Party hereto, and
no such Person shall have any legal or equitable right, remedy or claim under
this Agreement.

 

14.16       Confidentiality.
The Parties agree that this Agreement, the Work and all information and data
exchanged by them in accordance with this Agreement that is non-public,
proprietary and/or confidential in nature, shall be maintained in strict and
absolute confidence, except upon prior written notice and with respect to
disclosure (a) pursuant to the sale, disposition or other alienation
(directly or indirectly) of a Party’s rights and interest in and to this
Agreement, (b) pursuant to the sale or other disposition (directly or
indirectly) of all or substantially all of the assets of a Party, (c) in
conjunction with a merger, consolidation, share exchange or other form of
statutory reorganization involving a Party, (d) to lenders, accountants
and other representatives of the disclosing Party with a need to know such information,
(e) as required to make disclosure in compliance with any applicable Law,
or under compulsion of judicial process, to comply with this Agreement and its
objectives or (e) to those of a Parties’ Affiliates that have a “need to
know”; provided that the disclosing Party shall be liable for any 

 

22

 

disclosure by the receiving
Person to the extent such disclosure would not be permitted by this Section if
made by the disclosing Party.

 

23

 

IN
WITNESS WHEREOF, each Party has caused this Agreement to be executed in its
name by an officer thereunto duly authorized as of the date first set forth
above.

 

	
   

  	
  SENECA TERRITORY GAMING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Pasqualoni

  	
   

  
	
   

  	
  Printed Name:

  	
  John Pasqualoni

  
	
   

  	
  Title:

  	
  President & CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SENECA CONSTRUCTION MANAGEMENT

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Clayton Seneca

  	
   

  
	
   

  	
  Printed Name:

  	
  Clayton Seneca

  
	
   

  	
  Title:

  	
  President & CEO

  

 

24

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]