Document:

Amended and Restated Management Services Agreement, dated  February 25,2003

 
Exhibit 10.1

 

 
AMENDED AND RESTATED 
MANAGEMENT SERVICES AGREEMENT 
 
by and between 
 
The Old
Evangeline Downs, L.L.C., 
 
OED Acquisition,
LLC 
 
and 
 
Peninsula Gaming Company, LLC 
 
DATED: As of February 25, 2003 
 

 
TABLE OF
CONTENTS 
 

	 	  	 	  	 Page

	
	 ARTICLE 1
	  	         TERM AND APPOINTMENT OF
OPERATOR
	  	 1

	
	 1.01.
	  	 Appointment and Term
	  	 1

	 1.02.
	  	 Management of the Business
	  	 2

	 1.03.
	  	 Relation of the Parties
	  	 2

	 1.04.
	  	 Affiliates
	  	 2

	 1.05.
	  	 Consultation with Owner
	  	 2

	
	 ARTICLE 2
	  	         PRE-OPENING PROGRAM
	  	 3

	 2.01.
	  	 Construction of the New Facilities
	  	 3

	 2.02.
	  	 Pre-Opening Services
	  	 3

	 2.03.
	  	 Payment of Pre-Opening Expenses
	  	 4

	 2.04.
	  	 Compensation and Reimbursement of the Operators for Pre-Opening
Services
	  	 5

	
	 ARTICLE 3
	  	         NOTICES
	  	 5

	
	 ARTICLE 4
	  	         OPERATION
	  	 7

	
	 4.01.
	  	 General
	  	 7

	 4.02.
	  	 Licenses, Permits, Reports and Accreditation
	  	 8

	 4.03.
	  	 Personnel
	  	 8

	 4.04.
	  	 Sales and Promotions
	  	 8

	 4.05.
	  	 Maintenance and Capital Replacement
	  	 8

	 4.06.
	  	 Contracts and Agreements
	  	 8

	 4.07.
	  	 Accounting Services
	  	 8

	 4.08.
	  	 Books and Records
	  	 9

	 4.09.
	  	 Financial Statements
	  	 9

	 4.10.
	  	 Access, Review and Audit
	  	 9

	 4.11.
	  	 Bank Accounts
	  	 9

	 4.12.
	  	 Expenses
	  	 10

	 4.13.
	  	 Financial Management
	  	 10

	 4.14.
	  	 Annual Plans
	  	 10

	 4.15.
	  	 Revisions to Annual Plan
	  	 13

	 4.16.
	  	 Remittance to Owner
	  	 13

 

i 

 
TABLE OF
CONTENTS 
(continued) 
 

	 	  	 	  	 Page

	 4.17.
	  	 Insurance
	  	 13

	 4.18.
	  	 Waiver of Liability
	  	 13

	 4.19.
	  	 Legal Actions
	  	 13

	
	 ARTICLE 5
	  	         COMPENSATION OF THE
OPERATORS
	  	 14

	
	 5.01.
	  	 Forms of Compensation
	  	 14

	 5.02.
	  	 Basic Management Fee
	  	 14

	 5.03.
	  	 Incentive Fee
	  	 14

	 5.04.
	  	 Collection of Management Fees
	  	 14

	 5.05.
	  	 Allocation of Management Fees and Other Amounts
	  	 14

	
	 ARTICLE 6
	  	         INDEMNITY
	  	 15

	
	 6.01.
	  	 Indemnification to the Operators
	  	 15

	 6.02.
	  	 Indemnification to Owner
	  	 15

	 6.03.
	  	 Claiming Procedure
	  	 16

	 6.04.
	  	 Mitigation
	  	 17

	 6.05.
	  	 Payment
	  	 17

	
	 ARTICLE 7
	  	         DAMAGE TO, DESTRUCTION OF OR
CONDEMNATION OF THE NEW FACILITIES
	  	 17

	
	 7.01.
	  	 Damage to and Destruction of the New Facilities
	  	 17

	
	 ARTICLE 8
	  	         ASSIGNMENT
	  	 17

	
	 8.01.
	  	 Sale/Assignment
	  	 17

	 8.02.
	  	 Effect of Assignment
	  	 18

	
	 ARTICLE 9
	  	         TERMINATION
	  	 18

	
	 9.01.
	  	 Termination
	  	 18

	 9.02.
	  	 Effect of Termination
	  	 19

	 9.03.
	  	 Operator Responsibilities
	  	 19

	 9.04.
	  	 Survival
	  	 19

	 9.05.
	  	 Proprietary Information
	  	 19

	
	 ARTICLE 10
	  	         GENERAL PROVISIONS
	  	 20

	
	 10.01.
	  	 Entire Agreement
	  	 20

	 10.02.
	  	 Confidentiality
	  	 20

 

ii 

 
TABLE OF
CONTENTS 
(continued) 
 

	 	  	 	  	 Page

	 10.03.
	  	 Approvals
	  	 20

	 10.04.
	  	 Conflicts of Interest; Non-Compete
	  	 21

	 10.05.
	  	 Best Evidence and Counterparts
	  	 22

	 10.06.
	  	 Amendment or Modification
	  	 22

	 10.07.
	  	 Governing Law
	  	 22

	 10.08.
	  	 Interpretation
	  	 22

	 10.09.
	  	 Severability
	  	 22

	 10.10.
	  	 Force Majeure
	  	 22

	 10.11.
	  	 Waiver
	  	 23

	 10.12.
	  	 Definitions
	  	 23

	 10.13.
	  	 Governing Document
	  	 23

	 10.14.
	  	 Inspection of Facilities
	  	 23

	 10.15.
	  	 Third-Party Beneficiaries
	  	 23

	 10.16.
	  	 Regulatory Information
	  	 23

	 10.17.
	  	 Successors and Assigns
	  	 23

	 10.18.
	  	 Dispute Resolution
	  	 23

	 10.19.
	  	 Operators; Generally
	  	 24

	 10.20.
	  	 Effect of Amendment and Restatement
	  	 24

 
 

iii 

 
AMENDED AND
RESTATED 
MANAGEMENT SERVICES AGREEMENT 
 
THIS AMENDED AND RESTATED MANAGEMENT SERVICES AGREEMENT (this “Agreement”) is made
and entered into as of the 25th day of February, 2003, by and between The Old Evangeline Downs, L.L.C., a Louisiana limited liability company (“Owner”), OED Acquisition, LLC, a Delaware limited liability company
(“OEDA”), and Peninsula Gaming Company, LLC, a Delaware limited liability company (“PGC” and together with OEDA, each, an “Operator” and collectively, the “Operators”).

 
W I T N E S S E T H: 
 
WHEREAS, Owner desires to develop a racetrack and
casino gaming operation on its Site located in St. Landry Parish Louisiana; 
 
WHEREAS, Owner and PGC have heretofore entered into a Management Services Agreement, dated as of February 15, 2002 (the “Original MSA”), pursuant to which Owner engaged PGC to
manage and operate the Existing Racetrack and design, develop, construct, manage and operate the New Facilities and provide certain pre-opening services in connection therewith; 
 
WHEREAS, the parties hereto desire to amend and restate the Original MSA pursuant to the terms and
conditions set forth herein; 
 
NOW,
THEREFORE, in consideration of the foregoing recitals and of the mutual promises, representations, warranties, understandings, undertakings and covenants herein contained, and intending to be legally bound thereby, Owner and the Operators hereby
agree that, effective as of February 15, 2002, the Original MSA be, and hereby is, amended and restated in its entirety as herein set forth: 
 
ARTICLE 1  
 
TERM AND APPOINTMENT OF OPERATOR 
 
1.01. Appointment and Term. Owner hereby appoints and employs the Operators to act as its exclusive agents for the
supervision, direction and control of the management of the Facilities on Owner’s behalf, upon the terms, conditions and covenants hereinafter set forth. The Operators hereby accept such appointment upon and subject to the terms, conditions,
covenants and provisions set forth herein. The Operators agree to execute their duties hereunder in the best interest of Owner in good faith, subject to the budgetary limitations imposed upon the Operators, any applicable Governmental Requirements
and any limitations or restrictions contained in any Related Contract, it being understood that the Operators shall not be required to pay any amounts of money except those amounts required by the terms of this Agreement. Unless sooner terminated as
provided in this Agreement or extended by the mutual agreement of Owner and the Operators, this Agreement shall terminate on the later of (i) the date that is eight (8) years after 

 

1 

the Opening Date and (ii) the date of sale of all of PGC’s direct or indirect ownership interest in Owner (the “Term”).

 
1.02. Management of the Business.
Subject to the terms of this Management Agreement, the Operators shall have the authority to exclusively supervise and direct the management and operation of the Existing Racetrack and the design, development, construction, management and operation
of the New Facilities for the account of Owner. The Operators shall have the authority and responsibility (i) to determine operating policy, standards of operation, quality of service, the maintenance and physical appearance of the Facilities and
any other matters affecting operations and maintenance; (ii) to supervise and direct all phases of advertising, sales and business promotion for the Facilities; and (iii) to carry out all programs contemplated by the Annual Plan. Owner agrees that
it will cooperate with the Operators in every reasonable and proper way to permit and assist the Operators to carry out their duties hereunder and comply with any conditions or restrictions, if any, placed upon the Operators by any Gaming Authority.
The Operators shall take all actions which may, in their sole discretion, be reasonably necessary or appropriate in connection with the authority granted to it in accordance with the provisions of this Agreement. 
 
1.03. Relation of the Parties. In taking any
action pursuant to this Agreement, the Operators will be acting only as the appointed agents or representatives of Owner, and nothing in this Agreement shall be construed as: (i) creating a tenancy, partnership, joint venture or any other
relationship between the parties hereto, except that of principal and agent or (ii) creating or vesting any right, title, interest, estate, equity participation or beneficial ownership interest in favor of the Operators in or to the Facilities
except the contractual rights created in the Operators by this Agreement and any and all rights and remedies arising out of or in connection with the Operators’ direct or indirect ownership interests in Owner. All debts and liabilities properly
incurred by either Operator in the course of its management and operation of the Facilities hereunder shall be the debts and obligations of Owner only, and neither Operator shall be liable therefor and each Operator shall be fully indemnified
against such debts and obligations, except as specifically stated to the contrary herein. 
 
1.04. Affiliates. Affiliates of either Operator may provide services to, provide loans and funds to, negotiate for, provide personnel to, and, from time to time, take actions on behalf of
or for the benefit of such Operator by direct dealings with Owner or those acting for it, provided that the costs of such services shall not be charged to Owner or included in Operating Expenses without Owner’s written consent; it being
understood that by entering into this Agreement, Owner hereby consents to all costs and services relating to the Jefferies Financing (including, without limitation, any and all costs and expenses of either Operator related thereto). Each Operator
shall be responsible to Owner under this Agreement for the acts of Affiliates in the performance of services of such Operator under this Agreement as if such Affiliates were such Operator’s employees or agents. 
 
1.05. Consultation with Owner. The Operators
agree to furnish to Owner the monthly financial statements and Annual Plans as set forth in Article 4. Owner shall, at all times, have the right to enter the Facilities for the purpose of inspecting same and reviewing the operations. Owner agrees
that it and its representatives will, at no time, act in a manner which is inconsistent with the authority granted to the Operators. 
 

2 

 
ARTICLE
2 
 
PRE-OPENING PROGRAM

 
2.01. Construction of the New
Facilities. Owner hereby agrees to use its diligent good faith efforts to facilitate the construction of the New Facilities. Notwithstanding any provision to the contrary contained in this Agreement, (i) the Operators shall have the right to
supervise the design, development and construction of the New Facilities, and (ii) Owner shall not, without the prior written consent of each Operator, agree or otherwise cause the Facilities to be subject to or otherwise bound by any Governmental
Requirement to the extent such Governmental Requirement affects or otherwise impacts either Operator’s ability to perform the Pre-Opening Services or any of its other duties and responsibilities under this Agreement. The Operators will prepare
a construction budget and construction schedule with respect to the completion of all phases of the construction and development of the New Facilities. 
 
2.02. Pre-Opening Services. Prior to the Opening Date, the Operators, as agent of Owner, shall use their diligent good faith
efforts to perform or cause others to perform all such services as the Operators deem necessary to facilitate the opening of the New Facilities and the continued operation of Owner’s’ off-track betting operations on behalf of and for the
account of Owner (the “Pre-Opening Services”), subject to compliance by Owner with its reimbursement and funding obligations set forth in this Agreement, including the following. 
 

	 	(a)	 	preparation of a pre-opening marketing plan; 

 

	 	(b)	 	hiring of personnel in accordance with the provisions of this Agreement; 

 

	 	(c)	 	coordination of initial inventories purchases; 

 

	 	(d)	 	establishment of operating policies and procedures; 

 

	 	(e)	 	establishment of security systems for assets, personnel and patrons; 

 

	 	(f)	 	establishment of data processing hardware and software requirements and systems; 

 

	 	(g)	 	establishment of accounting and internal control systems and procedures; 

 

	 	(h)	 	establishment of a preventive maintenance program; 

 

	 	(i)	 	establishment of risk management policies and procedures; 

 

	 	(j)	 	training of all initial staff; 

 

	 	(k)	 	 engage and retain such architects, engineers, contractors, designers and other specialists (the “Project Architects”) as the Operators deem
necessary to prepare all site plans, grading plans, construction drawings, surveys, materials, specifications, architectural plans and drawings, elevations, construction models, engineering plans and drawings, 

 

3 

approved plats and all other plans, drawings, studies or reports required for the construction and/or outfitting of the New Facilities (the
“Plans and Specifications”) and for the purchase and installation of the FF&E thereat (the “FF&E Specifications”); 
 

	 	(l)	 	purchase all pre-opening gaming supplies and equipment, including in connection with off track betting operations; 

 

	 	(m)	 	provide specific operational and functional criteria for the New Facilities for use by the Project Architects in the preparation of the Plans and Specifications and
the FF&E Specifications; 

 

	 	(n)	 	advise and consult with the Project Architects in the development of schematic, preliminary and working Plans and Specifications and in the selection and
specifications of FF&E, wall and floor coverings, design and color, wall hangings, signage, art, accouterments, space planning requirements and functional design criteria and all other aesthetic and operational elements of design and other
nonstructural elements of the New Facilities; 

 

	 	(o)	 	advise and consult with the Project Architects regarding various key systems, including without limitation, mechanical, electrical, plumbing, life safety, gaming and
computer-related systems for the New Facilities; 

 

	 	(p)	 	determine all operational and all functional requirements of the New Facilities including without limitation, parking, recreational and gaming areas, food facilities
layout and equipment, and such other areas as management information systems, energy, signage, lighting, sound, communications, housekeeping, maintenance, personnel, data processing equipment and software, point of sale systems, life safety systems,
surveillance and security systems, marketing and entertainment; 

 

4 

 
2.03.
Payment of Pre-Opening Expenses. 
 
2.03.01 Source of Funds. All costs and expenses reasonably incurred in connection with performance of the Pre-Opening Services (the “Pre-Opening Expenses”), shall be paid from the Bank Accounts. Owner shall
timely deposit such sums in the Bank Accounts in accordance with the monthly schedules in the construction budget. 
 
2.03.02 Operator Advances. The Operators may, but are not required to, advance funds to pay Pre-Opening Expenses
and Reimbursables on behalf of Owner (any such advance, an “Operator Advance”). All such Operator Advances that are advanced by the Operators shall be itemized, scheduled and submitted to Owner and reimbursement to the Operators
shall be made by Owner either directly or by Owner directing the Operators to withdraw such amounts from the Bank Accounts. All such Operator Advances shall be reimbursed upon the Operators’ written request. 
 
2.04. Compensation and Reimbursement of the Operators
for Pre-Opening Services. For and in consideration of the Operators providing the Pre-Opening Services, Owner agrees to (i) pay the Operators on the Target Date a Pre-Opening Services fee (the “Pre-Opening Services Fee”)
accruing at a rate of $40,000 per month, commencing on June 27, 2001 and terminating on the Target Date, and (ii) upon the Operators’ written request, reimburse the Operators for all Operator Advances. 
 
ARTICLE 3 
 
NOTICES 
 
Any and all written notices required by this Agreement shall
be either hand-delivered or mailed, certified mail, return receipt requested, telexed, faxed, or sent via commercial courier, addressed to: 
 

	 TO PGC:
	 	 Peninsula Gaming Company, LLC

	 	 	 3rd Street Ice Harbor

	 	 	 P.O. Box 1750

	 	 	 Dubuque, IA 52004-1683

	 	 	 Facsimile No.: (563) 690-2190

	
	 	 	         - and -

	
	 	 	 Peninsula Gaming Company, LLC

	 	 	 c/o Jefferies & Company, Inc.

	 	 	 11100 Santa Monica Blvd.

	 	 	 10th Floor

	 	 	 Los Angeles, CA 90025

	 	 	 Attention: M. Brent Stevens

	 	 	 Facsmile No.: (310) 515–5165

	
	 	 	           - and
-

 

5 

 

	 	 	 Peninsula Gaming Company, LLC

	 	 	 c/o Cambridge Capital Advisors LLC

	 	 	 7173 Mission Hills Drive

	 	 	 Las Vegas, NV 89113

	 	 	 Attention: Michael S. Luzich

	 	 	 Facsimile No.: (702) 247-6822

	
	 	 	         - and -

	
	 	 	 OED Acquisition, LLC

	 	 	 c/o Cambridge Capital Advisors LLC

	 	 	 7173 Mission Hills Drive

	 	 	 Las Vegas, NV 89113

	 	 	 Attention: Michael S. Luzich

	 	 	 Facsimile No.: (702) 247-6822

	
	 WITH COPIES TO:
	 	 Mayer, Brown, Rowe & Maw

	 	 	 1675 Broadway

	 	 	 New York, NY 10019

	 	 	 Attn: Ronald S. Brody, Esq.

	 	 	 Facsimile No.: (212)-262-1910

	
	 TO OEDA:
	 	 OEDA Acquisition, LLC

	 	 	 c/o Peninsula Gaming Company, LLC

	 	 	 3rd Street Ice Harbor

	 	 	 P.O. Box 1750

	 	 	 Dubuque, IA 52004-1683

	 	 	 Facsimile No.: (563) 690-2190

	
	 WITH COPIES TO:
	 	 Mayer, Brown, Rowe & Maw

	 	 	 1675 Broadway

	 	 	 New York, NY 10019

	 	 	 Attn: Ronald S. Brody, Esq.

	 	 	 Facsimile No.: (212)-262-1910

	
	 TO OWNER:
	 	 The Old Evangeline Downs, L.L.C.

	 	 	 3620 N.E. Evangeline Thruway

	 	 	 Carencro, Louisiana 70520

	 	 	 Facsimile No.:

	
	 	 	         - and -

 

6 

	 	 	 Peninsula Gaming Company, LLC

	 	 	 3rd Street Ice Harbor

	 	 	 P.O. Box 1750

	 	 	 Dubuque, IA 52004-1683

	 	 	 Facsimile No.: (563) 690-2190

	 	 	         - and-      

	 	 	 Peninsula Gaming Company, LLC

	 	 	 c/o Jefferies & Company, Inc.

	 	 	 11100 Santa Monica Blvd.

	 	 	 10th Floor

	 	 	 Los Angeles, CA 90025

	 	 	 Attention: M. Brent Stevens

	 	 	 Facsimile No.: (310) 515-5165

	 	 	           - and
-      

	 	 	 Peninsula Gaming Company, LLC

	 	 	 c/o Cambridge Capital Advisors LLC

	 	 	 7173 Mission Hills Drive

	 	 	 Las Vegas, NV 89113

	 	 	 Attention: Michael S. Luzich

	 	 	 Facsimile No.: (702) 247-6822

 
All
notices hand-delivered shall be deemed delivered as of the date actually delivered. All notices mailed shall be deemed delivered as of three (3) Business Days after the date postmarked. All notices faxed shall be deemed delivered as of the Business
Day immediately following the date receipt of the facsimile is confirmed. All notices sent via commercial courier shall be deemed delivered as of the Business Day immediately following the date the notice is entrusted to the commercial courier
service with directions for service within one (1) day. Any changes in any of the addresses listed herein shall be made by notice as provided in this Article 3. Notwithstanding anything to the contrary herein, the return receipt indicating
the date upon which all notices were received shall be prima facie evidence that such notices were received on the date of the return receipt. 
 
The addresses and addressees may be changed by giving notice of such change in the manner provided herein for giving notice. Unless and
until such written notice is received, the last address and addressee given shall be deemed to continue in effect for all purposes. No notice to either Owner or the Operators shall be deemed given or received unless the entity notice “With a
copy to” is simultaneously delivered notice in the same manner as any notice given to either Owner or the Operators. 
 

7 

 
ARTICLE
4 
 
OPERATION

4.01. General. 
 
In order for the Operators to perform its duties hereunder and to comply with any applicable Governmental Requirements, Owner hereby
agrees that subject to Owner’s rights and the Operators’ obligations in this Agreement, (i) the Operators shall have uninterrupted control and operation of the Facilities during the Term, free and clear from any disturbance of any claims
by Owner or any third party claiming by, through or under Owner, and (ii) Owner will not unreasonably interfere or involve itself with the day-to-day operation of the Facilities. 
 
The Operators shall perform or cause others to perform all such services as the Operators deem necessary to
operate and manage the Facilities on behalf of and for the account of Owner, subject to compliance by Owner with its reimbursement and funding obligations set forth in this Agreement. The provision set forth below shall apply to both the Existing
Facilities and the New Facilities, in each case to the extent applicable. 
 
4.02. Licenses, Permits, Reports and Accreditation. The Operators and Owner shall timely apply for, obtain and maintain all licenses and permits required to operate the Business (other then gaming authority
permits, licenses and approvals required to be obtained by parties other than Owner or the Operators), at Owner’s expense. 
 
4.03. Personnel. All personnel of the Facilities, shall be personnel of Owner. However, as agents for Owner, the Operators
shall have the sole and absolute discretion to hire, supervise, direct the work of, discharge and determine the compensation and other benefits of all personnel working in the Facilities. Owner shall not interfere with or give orders or instructions
to personnel employed at the Facilities. The Operators, in their sole and absolute discretion, shall determine the fitness and qualifications of such personnel. The Operators shall in no way be liable to said personnel or to Owner for any and all
claims for wages, compensation or other benefits (including, without limitation, severance, pension, superannuation, retirement and termination pay) asserted by or on behalf of such personnel. The salaries, other compensation and benefits of such
personnel shall be an Operating Expense paid by the Operators from the Bank Accounts. The Operators shall in all respects comply with all applicable federal and state employment laws and regulations, in connection with the hiring, promoting,
discharging, employment and payment of employees. 
 
4.04. Sales and Promotions. The Operators may, at their sole discretion, cause the Facilities to participate in sales and promotional campaigns and, as appropriate, activities involving complimentary items to hotels,
travel agents, tourist officials and airline representatives and other hospitality industry representatives. The Operators shall have the sole right to entitle employees to grant complimentary items when the same is customary in the travel,
hospitality or gaming industry or in the Operators’ standard practice or policy. 
 
4.05. Maintenance and Capital Replacement. Owner shall be responsible for maintaining the property utilized in the Business in good repair and condition. To implement 

 

8 

Owner’s responsibility, the Operators shall, on behalf of Owner, and at Owner’s expense, make or cause to be made, all repairs,
replacements, corrections and maintenance items as shall be required in the normal and ordinary course of operation of the Business. Owner recognizes the necessity of capital improvements and shall expend such amount for capital improvements as
shall be required in the normal and ordinary course of operation of the Business in conformity with the amounts approved as part of the Annual Plan. 
 
4.06. Contracts and Agreements. The Operators, as agents of Owner, are authorized to make and enter into such contracts and
agreements as the Operators may deem necessary for the proper operation of the Facilities. Unless this Agreement expressly provides for an item or service to be at the Operators’ expense, all costs and expenses incurred by the Operators or an
Affiliate of either Operator in accordance with this Agreement and/or an Annual Plan shall be for and on behalf of Owner and for Owner’s account. 
 
4.07. Accounting Services. The Operators shall establish and maintain an accounting system, internal controls and reporting
systems in that are (i) consistent in all material respects with customary policies and procedures used by the Operators or their Affiliates engaged in such businesses, (ii) reasonably adequate to provide Owner and the Operators with the necessary
information about the Business and to safeguard Owner’s assets, (iii) in compliance with all Gaming Laws and in substantial compliance with all Governmental Requirements and (iv) approved by all Governmental Authorities which are required to be
obtained. The establishment of such systems shall constitute Pre-Opening Expenses and the maintenance of such systems shall constitute Operating Expenses. Upon the request of Owner, the Operators shall make available for inspection by Owner any
managerial reports produced by the Operators regarding the Business in the ordinary course of business. 
 
4.08. Books and Records. The Operators shall maintain, or cause to be maintained, at Owner’s expense, full and complete
books of account and such other records as are necessary to reflect the operating results of the Facilities (“Books and Records”). The Books and Records shall be kept in a manner so that the Financial Statements may be prepared in
accordance with Generally Accepted Accounting Principles consistently applied. The Operators shall keep all Books and Records, including without limitation, current vendor invoices, payroll records, general ledgers, credit transactions and other
records relating to the Business at the Facilities or such other location as shall be approved by Owner in writing, subject to such record retention and storage policies and access rights required by any Lender or any applicable Governmental
Requirements or Gaming Laws. All such Books and Records shall at all times be the property of Owner and shall not be removed by either Operator from the approved location without Owner’s written approval except as required by applicable Laws.
Upon any termination of this Agreement, all Books and Records shall immediately be turned over to Owner to ensure the orderly continuance of the operation of the Business, but such Books and Records shall be available to the Operators for a period
of five (5) years at all reasonable times and upon prior written request to Owner for inspection, audit, examination, transcription and copying of particulars relating to the period in which the Operators managed the Business. The Operators shall
also prepare and file for Owner, at Owner’s expense, all informational and/or tax returns which may be required by any Governmental Authority. 
 

9 

 
4.09.
Financial Statements. The Operators shall provide Owner (i) unaudited Financial Statements of the Business for each calendar month within 20 days after the end of each calendar month, (ii) quarterly Financial Statements of the Business
for each fiscal quarter within 45 days after the end of each fiscal quarter and (iii) annual Financial Statements of the Business within 90 days after the end of each fiscal year. 
 
4.10. Access, Review and Audit. Owner, any Gaming Authority and Lender (or their respective
duly appointed agents) shall have the right at reasonable times and during normal business hours, after reasonable written notice to the Operators, to examine, audit, inspect and transcribe the Books and Records. With respect to such reviews, Owner,
any Lender and their respective agents shall be subject to the confidentiality covenants in Section 10.02. The annual Financial Statements shall be audited by the Auditors at Owner’s expense. 
 
4.11. Bank Accounts. The Operators shall
establish at financial institution(s) designated by the Operators such bank accounts (“Bank Accounts”) as the Operators deem necessary for the operation of the Facilities. All Bank Accounts for the Facilities shall be in the name of
either Operator, as agent for Owner. Owner and the Operators shall agree on the procedures for withdrawals and deposits of funds. The Operators shall have the right to designate individuals to disburse funds from the business bank accounts to pay
all costs and expenses of managing, operating and maintaining the business and its properties, including authorized capital expenditures and management fees due to either Operator. Owner agrees that at all times during the term of this Agreement, a
bank balance as approved in the Annual Plan shall be maintained in an amount necessary to provide sufficient working capital to assure the uninterrupted and efficient operation of the business. 
 
4.12. Expenses. 
 
(a) All costs, expenses, funding of operating
deficits and working capital, and other obligations and liabilities hereunder including costs incurred by either Operator under this Agreement or in connection with the transactions contemplated hereby (“Owner’s Financial
Obligations”) shall be the sole and exclusive responsibility and obligation of Owner, except for those instances herein where it is expressly and specifically stated that such item shall be for the account of the Operators. The Operators
shall allocate to Owner the direct expense of employees of the Operators (including compensation expenses) to the extent that such employees provide dedicated services for the benefit of the Business; provided, however, that Owner shall have
no obligation to reimburse either Operator for any such direct expense (other than Reimburseables) relating to the services provided by Michael Luzich or Brent Stevens. Owner shall have no obligation for any other corporate overhead of either
Operator. It is understood that statements herein indicating that the Operators shall “furnish”, “provide” or otherwise supply, present or contribute items or services hereunder shall not be interpreted or construed to mean that
either Operator is liable or responsible to fund or pay for such items or services, except in those specific instances mentioned above. 
 
(b) With respect to Owner’s Financial Obligations, the same shall be funded and/or paid for as follows: (i) first,
from monies which may be available in the Bank Accounts maintained by the Operators hereunder; and (ii) second, if such Bank Accounts maintained by the Operators hereunder do not contain monies sufficient to fund and/or pay Owner’s Financial

 

10 

Obligations, from monies which shall be deposited by Owner in such Bank Accounts within three (3) days after request therefor by the
Operators in writing. 
 
(c) It is
understood and agreed that the Operators shall have no obligation or duty to fund and/or pay for any of Owner’s Financial Obligations. 
 
4.13. Financial Management. The Operators shall be responsible for the management of the day-to-day financial affairs of the
Business. 
 
4.14. Annual Plans.

 
4.14.01 Submission of Annual
Plans. No later than thirty (30) days prior to the end of each Fiscal Year, the Operators shall submit to Owner for Owner’s approval, an annual plan for the operation of the Business for the forthcoming Fiscal Year (each such annual plan is
referred to herein as an “Annual Plan”). Each proposed Annual Plan shall consist of the following: 
 

	 	(a)	 	An annual marketing plan (“Annual Marketing Plan”); 

 

	 	(b)	 	An annual line item operating budget (“Annual Operating Budget”); 

 

	 	(c)	 	An annual estimate of key operating statistics; 

 

	 	(d)	 	An annual projection of sources and uses of cash by month; and 

 

	 	(e)	 	An annual capital expenditures budget regarding capital expenditures (“Annual Capital Expenditures Budget”) which shall include the proposed
schedule for effecting such repairs and/or improvements. 

 
Each proposed Annual Plan shall be prepared in such form and containing such detail as Owner may reasonably require. 
 
4.14.02 Preparation of Annual Plan. Each proposed Annual Plan shall be prepared by the Operators based on, among
other things, the actual and projected results of the current Fiscal Year, the standard of maintaining and operating the Facilities in accordance with this Agreement, information with respect to possible occurrences which may impact the marketing
and/or operation of the Business in the future, changes from the previous Fiscal Year’s results, reasonable expectations for the future and such other information and assumptions that shall be reasonably requested under the circumstances.

 
4.14.03 Review and
Approval. In connection with the preparation and submission of a proposed Annual Plan, Owner will meet with the Operators within fifteen (15) days after delivery of the proposed Annual Plan for an in-depth review, including a discussion of the
marketing strategy, operations format and rationale for proposed expenditures embodied in the proposed Annual Plan. Owner shall be required, by giving written notice to the Operators, to approve or disapprove each proposed Annual Plan within fifteen
(15) days after the date Owner and the Operators last meet to discuss the proposed Annual Plan. The parties shall use all reasonable efforts to complete the review of the proposed Annual Plan no later than forty-five 

 

11 

(45) days after the initial delivery of the proposed Annual Plan to Owner. Any notice that disapproves a proposed Annual Plan must contain
reasonably detailed specific objections along with suggestions as to what corrective measures can be taken to make such proposed Annual Plan acceptable to Owner. 
 
4.14.04 Disagreements Regarding Annual Plan. If Owner fails to provide written notice
to the Operators of its objections within fifteen (15) days after the last meeting between Owner and the Operators, such proposed Annual Plan shall be deemed to be approved as submitted, subject to any changes upon which Owner and the Operators have
previously agreed. If Owner disapproves or objects to any items contained in the proposed Annual Plan or any revisions thereto, Owner and the Operators shall cooperate with each other in good faith to attempt to expeditiously resolve the disputed or
objectionable proposed items. If Owner and the Operators are unable to reach a mutually acceptable agreement concerning the disputed or objectionable items within fifteen (15) days after the date Owner advises the Operators of its objections as
aforesaid, either party shall be entitled to submit the dispute to arbitration in accordance with Section 10.18. If Owner’s objections relate only to certain portions of the proposed Annual Plan or a Budget contained therein, the
undisputed portions of the proposed Annual Plan shall be deemed to be adopted and approved and only those Budgets under dispute shall be submitted to arbitration. 
 
4.14.05 Disagreements Regarding Annual Operating Budgets. With respect to
objectionable items in any Annual Operating Budget, but only until and to the extent that any dispute concerning such objectionable items are not resolved, the corresponding item contained in the Annual Operating Budget for the preceding Fiscal Year
shall be substituted in lieu of the disputed portions of the proposed Annual Operating Budget, excluding, however, line items in the previous Annual Operating Budget for extraordinary expenses or revenues. In any instance where a portion of an
Annual Operating Budget from a preceding Fiscal Year is deemed to be applicable to the Annual Operating Budget in effect until a new Annual Operating Budget is fully approved, corresponding items contained in the Annual Operating Budget for the
preceding Fiscal Year shall be automatically adjusted by a percentage equal to the percentage change in the Consumer Price Index during the preceding Fiscal Year. Such calculation of percentage change in the Consumer Price Index shall be made by the
Operators based upon the then most recently published Consumer Price Index data at the time the calculation is made. 
 
4.14.06 Disagreements Regarding Annual Capital Expenditures Budgets. If Owner and the Operators are unable to agree
on the amount of any item in an Annual Capital Expenditures Budget, only those capital expenditures with respect to which Owner and the Operators have reached an agreement (or the undisputed portion of an amount in dispute) that are approved by
Owner or are required to be made by Lender or any Governmental Authority shall be made until Owner and the Operators otherwise agree on the terms of such Annual Capital Expenditures Budget or the matter is decided by arbitration; provided, however,
that until and to the extent that any dispute concerning objectionable items are not resolved, the corresponding item contained in the Annual Capital Expenditures Budget for the preceding Fiscal Year shall be substituted in lieu of the disputed
portions of the proposed Annual Capital Expenditures Budget, excluding, however, line items in the previous Annual Capital Expenditures Budget for extraordinary expenses or revenues. The applicable Annual Plan will be appropriately adjusted to
reflect the effect of any delay in capital expenditures. 
 

12 

 
4.14.07 Operator Discretion Regarding Budgets. In the event that Operating Expenses in any fiscal year would in the aggregate exceed the Operating Expenses provided in the Annual Operating Budget for such fiscal year by more
than 10%, the Operators shall revise the Annual Plan and submit to Owner for Owner’s approval as set forth in Section 4.15. 
 
4.14.08 Operator’s Disclaimer. Notwithstanding the provisions of this Section 4.14 and all other
provisions of this Agreement, Owner recognizes that neither Operator is, or is intended to be, a guarantor of the Annual Operating Budget. Owner acknowledges that notwithstanding the Operators’ experience in the operation of gaming facilities,
the projections contained in each Operating Budget submitted from time to time to Owner by the Operators are mere estimates and are subject to and may be affected by changes in financial, economic and other conditions and circumstances beyond the
Operators’ reasonable control, and the giving of such projections or the making of such Annual Operating Budgets shall never be construed as a guarantee or warranty by the Operators to Owner that such projections or pro formas will, in fact,
occur. 
 
4.15. Revisions to Annual
Plan. If, in the Operators’ sole judgment, revisions to all or any portion of the Annual Plan are appropriate, the Operators shall revise the Annual Plan and submit such revised Annual Plan to Owner for approval in accordance with the
provisions set forth in Section 4.14. 
 
4.16. Remittance to Owner. Contemporaneously with furnishing the Financial Statements for each calendar month to Owner pursuant to Section 4.09, the Operators shall remit to Owner, subject to applicable Laws and
the Related Contracts, from the Bank Accounts, an amount by which the total funds in the Bank Accounts exceed the sum of working capital and the current amount on deposit in the Capital Expenditures Fund. 
 
4.17. Insurance. Owner, for the benefit of both
Owner and the Operators, shall maintain adequate insurance during the term of this Agreement, including any insurance of the Operators which may be required. The Operators shall procure all insurance on behalf of Owner and the carrier, type and
amount of coverage shall be designated by the Operators in their sole discretion. 
 
4.18. Waiver of Liability. To the extent covered by insurance, each Operator and Owner each waives, releases and discharges the other from all claims or demands which each may have or
acquire against the other, or against each other’s directors, officers, agents, employees or partners, with respect to any claim for any losses, damages, liability or expenses (including attorneys’ fees) incurred or sustained by either of
them on account of injury to persons or damage to property or business arising out of the ownership, management, operation and maintenance of the Business, regardless whether any such claim or demand may arise because of the fault or negligence of
the other party or its officers, partners, agents or employees. Except to the extent a loss, damage or expense is a result of the other party’s gross negligence, bad faith or willful misconduct, in the event of any such loss, damage, liability
or expense, Owner and each Operator each shall look to the insurance maintained with respect to the Business or otherwise by such party and shall not make any claim or seek any recovery against the other party. Each policy of insurance maintained
with respect to the Business shall contain a specific waiver of subrogation reflecting the provisions of this Section 4.18, or a provision to the effect that the 

 

13 

existence of the preceding waiver shall not affect the validity of any such policy or the obligation of the insurer to pay the full amount of
any covered loss sustained. 
 
4.19. Legal
Actions. Subject to Section 6.03, all matters of a legal nature involving the Business or the Facilities or any portion thereof shall be handled by legal counsel selected by the Operators and reasonably acceptable to Owner (such legal
counsel which shall include but not be limited to Mayer, Brown, Rowe & Maw, is hereinafter referred to as “Approved Legal Counsel”). The Operators shall notify Owner of the commencement of any legal action or proceeding
concerning the Business or the Facilities or any portion thereof as soon as practicable after the Operators receive actual notice of the commencement of such legal action unless such action is for money damages only and such damages are reasonably
anticipated to be either fully covered by insurance or not in excess of $500,000. Except with respect to those legal matters in which Owner advises the Operators that it desires to be directly involved, the Operators shall be responsible for
directing on behalf of Owner the Approved Legal Counsel to take any reasonable or necessary legal actions to protect Owner’s assets and to ensure compliance with the contractual obligations of others and all Governmental Requirements. In any
legal action or proceeding in which Owner is to be the plaintiff or complainant, then the Operators may not commence such legal action or proceeding without first obtaining the prior consent of Owner. 
 
ARTICLE 5 
 
COMPENSATION OF THE OPERATORS 
 
5.01. Forms of Compensation. For and in
consideration of the services rendered by the Operators pursuant to this Agreement, other than Pre-Opening Services for which Owner agrees to pay the Operators the Pre-Opening Services Fee, Owner agrees to pay to the Operators compensation in the
form of (i) the Basic Management Fee, (ii) the Incentive Fee, and (iii) all Reimbursables. 
 
5.02. Basic Management Fee. The “Basic Management Fee” shall be an amount equal to one and seventy-five one-hundredths percent (1.75%) of Net Revenue (excluding food and
beverage revenue). The Basic Management Fee shall be due and payable monthly in arrears on the date the monthly Financial Statements are delivered to Owner. The Basic Management Fee shall be adjusted quarterly based on actual results reported for
each such Fiscal Quarter and, if necessary, annually based on actual results reported for each Fiscal Year. A partial Fiscal Year at the beginning and end of the Term shall be treated as a Fiscal Year for purposes of this Section 5.02.

 
5.03. Incentive Fee. The
“Incentive Fee” shall be an amount equal to (i) three percent (3%) of the first $25 million of EBITDA; (ii) four percent (4%) of EBITDA in excess of $25 million but less than $30 million of EBITDA; and (iii) five percent (5%) of EBITDA in
excess of $30 million. The Incentive Fee shall be due and payable monthly in arrears on the date the monthly Financial Statements are delivered to Owner. The Incentive Fee shall be adjusted quarterly based on annual forecasts and annually based on
actual results reported in the Financial Statements for each Fiscal Year. A partial Fiscal Year at the beginning and end of the Term shall be treated as a Fiscal Year for purposes of this Section 5.03. 
 

14 

 
5.04.
Collection of Management Fees. The Operators shall have the right to collect for themselves the Management Fees and Reimbursables from any of the Bank Accounts at the time such amounts are payable. If at any time the payment, in whole
or in part, of the Management Fees or any Reimbursables is not permitted or is otherwise subject to any restriction against payment by any Loan Document, until such time as such payments are permitted to be made in full to the Operators, such unpaid
amounts shall accrue interest from the date such payments are required to be made until the date such payments are actually made at a rate per annum equal to 12 1/4 %, compounded daily and calculated on the basis of a 360-day year. 
 
5.05. Allocation of Management Fees and Other Amounts. The Management Fees, Pre-Opening Services Fees, Reimbursables and all
other amounts due and payable to the Operators hereunder, whether for the account of OEDA, PGC or the Operators generally, shall be paid by Owner directly to OEDA, which payment to OEDA shall be deemed to satisfy any payment obligation in respect of
such amounts to PGC. OEDA shall distribute such portion of any such amounts to PGC as is determined by mutual agreement of PGC and OEDA. 
 
ARTICLE 6 
 
INDEMNITY 
 
6.01. Indemnification to the Operators. Owner agrees to indemnify and hold each Operator and each Operator Indemnified
Person harmless from and against all loss, liability or cost (including reasonable attorneys’ fees and expenses) that is not covered by insurance proceeds and which either Operator and any Operator Indemnified Person may sustain, incur or
assume as a result of any Claims which may be alleged, made, instituted or maintained against Operator, any Indemnified Person or Owner, jointly or severally, arising out of, resulting from or based upon (i) any breach by Owner of any of its
representations, warranties, covenants or agreements contained in this Agreement, (ii) the ownership, condition or use of the Facilities, (iii) the management or operation of the Business, including, without limitation, obligations or liabilities
arising out of or relating to (A) any federal, state or local tax or duty of any kind, (B) indebtedness of Owner or other obligations or liabilities of Owner necessary to operate the Business, including but not limited to the Jefferies Financing and
the Operating Expenses, (C) employee or labor relations matters including, but not limited to, employee benefit or similar plans, medical benefits, life insurance, severance, workers’ compensation, (D) any claim, proceeding or other litigation
involving the Business, including, without limitation, injury to person(s) and damage to property or business by reason of any cause whatsoever in and about the Facilities, whether caused, wholly or partially, by the negligence of either Operator or
its members, officers, employees agents or Affiliates, (E) the failure of the Business to comply in any respect with applicable Gaming Laws, Governmental Requirements, Environmental Requirements, or other applicable laws, statutes, rules or
regulations to which either Owner, either Operator or the Business is subject, or (F) the failure by Owner, either Operator or any other Person to consummate the Jefferies Financing; provided, however, Owner shall not be liable to indemnify
and hold either Operator or any Operator Indemnified Person harmless from any such uninsured loss, liability or cost (including costs of defense) solely to the extent it is the 
 

15 

result of gross negligence or willful misconduct or criminal conduct of the party seeking indemnification hereunder. 
 
6.02. Indemnification to Owner. Each Operator
agrees to indemnify and hold Owner and each Owner Indemnified Person free and harmless from all loss, liability or cost (including reasonable attorneys’ fees) that is not covered by insurance proceeds and which Owner and any Owner Indemnified
Person may sustain, incur or assume as a result of any Claims which may be alleged, made, instituted or maintained against Owner, either Operator or any Indemnified Person, jointly or severally, arising out of or based upon (i) the operation,
condition or use of the Facilities by either Operator, or (ii) the operation or management of the Business by either Operator, including, without limitation, injury to person(s) and damage to property or business by reason of any cause whatsoever in
and about the Facilities or elsewhere, and any requirement or award relating to course of employment, working conditions, wages and/or compensation of employees or former employees at the Facilities, in each case solely to the extent any such injury
or damage is caused by the gross negligence or willful misconduct or criminal conduct of either Operator or any of their respective employees. 
 
6.03. Claiming Procedure. 
 
6.03.01 Notice. Promptly after the assertion of any Claim by a third party which may give rise to a claim for
indemnification from an indemnitor under this Agreement, an Indemnified Person shall notify the indemnitor in writing of such Claim and advise the indemnitor whether the Indemnified Person intends to contest such Claim. Failure to notify an
indemnitor shall not relieve such indemnitor from any ability hereunder to the extent indemnitor is not materially prejudiced as a result thereof and in any event shall not relieve indemnitor from any liability which indemnitor may have otherwise
than on account of this Agreement. 
 
6.03.02 Contest and Defend. The Indemnified Person shall permit the indemnitor to contest and defend against such Claim, at the indemnitor’s expense, if the indemnitor has confirmed to the Indemnified Person in writing
that it agrees that the Indemnified Person is entitled to indemnification hereunder in respect of such Claim, unless the conduct of its defense by the indemnitor could be reasonably likely to prejudice such Indemnified Person due to the nature of
the Claims presented or by virtue of a conflict between the interests of such Indemnified Person and such indemnitor and another Indemnified Person whose defense has been assumed by the indemnitor. Notwithstanding a determination by the indemnitor
to contest such Claim, the Indemnified Person shall have the right to be represented by its own counsel and accountants at its own expense except as set forth above. In any case, the Indemnified Person shall make available to the indemnitor and its
attorneys and accountants, at all reasonable times during normal business hours, all books, records, and other documents in its possession relating to such Claim. The party contesting any such Claim shall be furnished all reasonable assistance in
connection therewith by the other party (with reimbursement of reasonable expenses by the indemnitor). If the indemnitor fails to undertake the defense of or to settle or pay any such third-party Claim within fifteen (15) days after the Indemnified
Person has given written notice to the indemnitor advising the indemnitor of such Claim, or if the indemnitor, after having given notice to the Indemnified Person that it intends to undertake the defense, fails forthwith to defend, settle 

 

16 

or pay such Claim, then the Indemnified Person may take any and all necessary action to dispose of such Claim including, without limitation,
the settlement or full payment thereof upon such terms as it shall deem appropriate, in its sole discretion, subject to the following with respect to any proposed settlement thereof. 
 
6.03.03 Compromise or Settlement. The indemnitor shall not consent to the terms of any
compromise or settlement of any third-party Claim defended by the indemnitor in accordance herewith (other than terms related solely to the payment of money damages and only after the indemnitor has furnished the Indemnified Person with such
evidence as the Indemnified Person may reasonably request of the indemnitor’s ability (financial and otherwise) to pay promptly the amount of such money damages at such times as provided in the compromise or settlement and so long as any such
settlement does not include any statement as to or an admission of fault, culpability or failure to act by or on behalf of any Indemnified Person) without the prior written consent of the Indemnified Person. 
 
6.03.04 Notice. Any claim for
indemnification under this Agreement which does not result from the assertion of a Claim by a third party shall be asserted by written notice given by the Indemnified Person to the indemnitor. Such indemnitor shall have a period of thirty (30) days
within which to respond thereto. If such indemnitor does not respond within such thirty (30) day period, such indemnitor shall be deemed to have accepted responsibility to make payment, and shall have no further right to contest the validity of such
Claim. If the indemnitor does respond within such 30-day period and rejects such Claim in whole or in part, such Indemnified Person shall be free to pursue such remedies as may be available to such party under applicable Law, including through
arbitration as provided for in Section 10.18 hereof (it being understood that any such rejection shall not limit in any way such Indemnified Person’s right to indemnification under this Agreement). 
 
6.04. Mitigation. Each indemnitor and
Indemnified Person shall use reasonable efforts and shall consult and cooperate with each other with a view towards mitigating Claims that may give rise to claims for indemnification under Sections 6.01 and 6.02; 
 
6.05. Payment. Each indemnitor agrees to pay
amounts due hereunder (i) within ten (10) days of written notice in respect of its indemnity obligations which it has accepted pursuant to Section 6.03.02 or which it has been deemed to accept pursuant to Section 6.03.04, and (ii)
within five (5) days of any final adjudication of any indemnity obligations as to which it has not so accepted. 
 
ARTICLE 7 
 
DAMAGE TO, DESTRUCTION OF OR CONDEMNATION OF THE NEW FACILITIES 
 
7.01. Damage to and Destruction of the New Facilities. 
 
In the event of a fire or other property loss resulting in damage to, or impairment or destruction of, the
New Facilities, if Owner fails to repair, restore, rebuild or replace any damage within sixty (60) days after the date of Owner’s settlement with the insurance company 

 

17 

with respect to the fire or other casualty or shall fail to complete the same diligently, the Operators, at their election, may terminate
this Agreement. 
 
7.02.
Condemnation. 
 
If the whole of the
New Facilities shall be taken or condemned in any eminent domain, condemnation, compulsory acquisition or like proceeding by any competent authority for any public or quasi-public use or purpose, or transferred or conveyed to any competent authority
in anticipation of such eminent domain, condemnation, compulsory acquisition or like proceeding, or if such a portion thereof shall be taken or condemned or conveyed as to have a Material Adverse Effect or otherwise make it imprudent or unreasonable
to use the remaining portion in a manner satisfactory to Owner, in Owner’s reasonable judgment, then in any of such events this Agreement shall cease and terminate as of the date of such taking or condemnation. 
 
ARTICLE 8 
 
ASSIGNMENT 
 
8.01. Sale/Assignment. 
 
8.01.01 Owner Transfer. Owner shall
have no right to Transfer its interests in this Agreement without the prior written consent of the Operators; provided that Owner may terminate this Agreement if the Operators do not consent to any such Transfer. 
 
8.01.02 Operator Transfer. Neither
Operator shall have the right to Transfer its interest in this Agreement without the prior written consent of Owner; provided that either Operator may assign this agreement to any wholly-owned Subsidiary of Peninsula Gaming Partners, LLC.

 
8.02. Effect of Assignment. In the
event the necessary consent to any assignment of this Agreement is given by Owner or the Operators, no further assignment that is restricted by Section 8.01 shall be made without the express written consent of Owner or the Operators. An
assignment to which Owner or the Operators has expressly consented in writing shall relieve the assignor of its obligations under this Agreement after the effective date of such assignment provided that the assignee specifically assumes all of the
assignor’s obligations and duties recited herein after the effective date of such assignment pursuant to a written assignment. 
 
ARTICLE 9 
 
TERMINATION 
 
9.01. Termination. This Agreement shall terminate upon the occurrence of any of the following events: 
 
9.01.01 Expiration. The expiration of
the stated Term including any extensions in accordance with the terms hereof; 
 

18 

 
9.01.02 Mutual Agreement. Agreement by Owner and each Operator in writing to terminate this Agreement; 
 
9.01.03 Owner Default. At the sole discretion of the Operators, upon (i) the failure by Owner to make any monetary
payment required hereunder on or before the due date and such failure continues for ten (10) Business Days after receipt by the Operators of a written notice from Owner specifying such failure or (ii) the failure by Owner to perform its material
obligations in this Agreement and such failure has a material adverse effect on the financial condition or results of operations of the Business and such failure shall continue for a period of thirty (30) days after written notice thereof from the
Operators to Owner specifying in reasonable detail the nature of such failure; 
 
9.01.04 Operator Default. At the sole discretion of Owner, upon the failure by the Operators to perform their material obligations contained in this Agreement and such failure has a material
adverse effect on the financial condition or results of operations of the Business and such failure shall continue for a period of thirty (30) days after written notice thereof from Owner to the Operators specifying in reasonable detail the nature
of such failure, 
 
9.01.05
Operator License. At the sole discretion of Owner, if the Operators shall have been found unsuitable to provide the services contemplated by this Agreement by the Gaming Authorities and no appeal or other remedy is available or undertaken;
and 
 
9.01.06 Termination
Rights. The exercise of any other termination right expressly granted under this Agreement pursuant to Section 7.01, 7.02 or 8.01. 
 
9.02. Effect of Termination. Upon termination of this Agreement, all sums owed by Owner to the Operators or by the Operators
to Owner shall be paid within thirty (30) days of the termination date. In the event of any termination of this Agreement, Owner shall, notwithstanding such termination, be liable to the Operators for the fees earned and Reimbursables incurred by
the Operators hereunder prior to such termination as follows: (i) unpaid accrued and payable Management Fees, Pre-Opening Services Fees (including that pro rata portion thereof earned through the date of termination but for which payment was accrued
pursuant to Section 2.04) and Operator Advances (including any unpaid accrued interest thereon), if any, (ii) the present value (calculated based on projections at the time of termination and based on a discount rate of 8%) of the projected
Management Fees remaining unpaid during the eight (8) year period immediately subsequent to the Opening Date, (iii) all Reimbursables incurred prior to termination hereunder, plus (iv) a termination fee equal to $5.0 million plus an amount computed
like interest at the rate of eight percent (8%) per annum (compounded semi-annually as of June 30 and December 31 of each calendar year) on such $5.0 million to the date of payment thereof; provided, however, that the amounts specified in
clause (ii) above shall not be payable if the termination is made by Owner pursuant to Section 9.01.04 or 9.01.05. Owner shall pay the Operators the amounts owed the Operators described in clauses (i) through (iii) above through the
date of termination, after deducting therefrom any amounts owed by the Operators to Owner and not disputed by the Operators, within 10 days after such termination. Owner shall pay the Operators the amounts owed the Operators described in clause (iv)
above on the date that either OEDA no longer owns any equity interests of Owner or PGC no longer owns any equity interests of OEDA. 
 

19 

 
9.03.
Operator Responsibilities. In the event of termination of this Agreement, the Operators will relinquish control of (i) all Bank Accounts and (ii) all funds in or accounts in Operator’s control which relate to the Business, subject
to the Operators’ rights set forth under Section 9.02. 
 
9.04. Survival. Notwithstanding anything contained herein to the contrary, the parties acknowledge that: (i) the provisions of Article 6, Section 9.02, Section 9.03, Section 9.05,
Section 10.02 and Section 10.04 and (ii) the obligations of either party for all amounts due and payable from the Operators to Owner or from Owner to the Operators shall survive the termination or expiration of this Agreement.

 
9.05. Proprietary Information. In
the event of termination of this Agreement, the Operators will relinquish to Owner all of the Books and Records and the marketing, credit and customer data contained in operating records of the Business and which are generated by the Operators in
connection with its duties hereunder. As of the termination of this Agreement, the Operators shall not have the right to copy such records prior to relinquishing control over them to Owner, except as provided in Section 4.08. Upon termination
of this Agreement for any reason, the Operators’ marketing, credit and customer data and proprietary computer programs generated prior to the date hereof shall remain the sole property of the Operators, and shall not be used or disclosed to
other Persons by Owner or its agents or Affiliates provided that the Operators’ records indicate that such information and programs were complied and/or developed prior to the date hereof. Owner and the Operators acknowledge that pursuant to
the sharing of information by and among Owner, the Operators and the Operators’ respective Affiliates, Owner, the Operators and the Operators’ respective Affiliates will have information and copies of records from the Business prior to
termination and nothing herein shall prevent the use of such information so obtained for the purposes contemplated hereunder and subject to the limitations contained herein. 
 
ARTICLE 10 
 
GENERAL PROVISIONS 
 
10.01. Entire Agreement. This Agreement embodies the entire agreement and understanding of
Owner and the Operators relating to the subject matter hereof and supersedes all prior representations, agreements and understandings, oral or written, relating to such subject matter (other than the Operating Agreement of Owner), including, without
limitation, the Original MSA.. 
 
10.02.
Confidentiality. Both parties shall maintain confidentiality with respect to material developments in the course of development of the Facilities and operation of the Business, subject to Governmental Requirements and applicable Law.
Except as required by any Law (including, without limitation, federal securities and stock exchange or National Association of Securities Dealers, Inc. requirements) and Gaming Authorities, material confidential information shall be made available
only to such of Owner’s or the Operators’ employees and consultants as are required to have access to the same in order for the recipient party to adequately use such information for the purposes for which it was furnished. Any Person to
whom such information is disclosed shall be informed of its confidential nature and the party 

 

20 

disclosing such information shall obtain a confidentiality agreement from such Person the terms of which shall be consistent with the
provisions of this Section 10.02. Information provided by one party to the other shall be presumed confidential unless the information is (a) published or in the public domain other than as a result of any action by the recipient thereof, (b)
disclosed to the recipient by a third party not known by the recipient to be subject to an agreement of confidentiality or (c) presented to the recipient under circumstances which clearly and directly indicate the delivering party does not intend
such information to be confidential. 
 
10.03.
Approvals. Any consent or approval referred to herein (by whatever words used) of either party hereto shall not be unreasonably withheld, delayed or conditioned, except in those situations in which this Agreement explicitly gives the
party absolute or sole discretion to give or withhold such approval or consent. Except as otherwise expressly provided herein, whenever any party has called upon the other to execute and deliver a consent or approval in accordance with the terms of
this Agreement, the failure of such party to expressly disapprove within ten (10) Business Days after written request therefor in accordance with the terms of Article 3, or such other period as specifically set forth herein is given, shall be
deemed to be a consent or approval. In the event that any party refuses to give its consent or approval to any request by another party, such refusing party shall indicate by written notice to the other the reason for such refusal in sufficient
detail for the party requesting such consent or approval to understand the exact basis for withholding such consent or approval. 
 
10.04. Conflicts of Interest; Non-Compete. 
 
10.04.01 Conflicts of Interest. Owner acknowledges and agrees that the Operators may
have and may distribute promotional materials for the Operators’ Affiliates’ facilities, including casinos, at the New Facilities if reciprocal arrangements are made in favor of the Business at Operators’ Affiliates’ facilities.

 
10.04.02 Covenant Not to
Compete of Owner; Non-Solicitation. Owner agrees that during the Term, except for the Facilities, it will not either directly or indirectly: (i) own, manage or operate a casino in any jurisdiction in which either Operator or any of their
respective Affiliates own, manage or operate a casino or conduct other gaming activities, now or in the future, whether as a proprietor, partner, stockholder, advisor, consultant or in any other capacity, or (ii) provide technical, marketing or
other assistance to any casino or casino operator in any jurisdiction where either Operator or any of their respective Affiliates own, manage or operate a casino or conduct other gaming activities. Owner acknowledges that the foregoing restriction
is reasonable in scope, duration and geographic area and is properly required to protect the legitimate business needs of the Operators. Additionally, Owner agrees that during the Term and for a period of two (2) years thereafter, without the prior
written consent of the Operators, neither Owner nor any of its Affiliates shall, directly or indirectly, (i) in any manner induce or attempt to induce any employee, customer or supplier of the Business or any employee, customer or supplier of either
Operator or any of their respective Affiliates with respect to any gaming operations conducted by them at such time to leave or cease doing business with either Operator or any of their respective Affiliates, as applicable, or in any way interfere
with the relationship between them and either Operator or any of their respective Affiliates, as applicable, or (ii) hire or solicit for employment any employee of either Operator or any of their respective Affiliates (other than Owner) with respect
to any gaming operations conducted by them; provided, 

 

21 

however, that the preceding clause (ii) shall not prohibit Owner from hiring (but not soliciting) any employee of either Operator or
any of their respective Affiliates to the extent such employee is employed by Owner in a business that is not, directly or indirectly, in competition with any gaming operations then conducted by either Operator or any of their respective Affiliates.
The term “solicitation” as used in the preceding sentence includes, without limitation, offering any employee employed by either Operator or any of their respective Affiliates employment commencing after the non-solicitation period. The
Operators shall not solicit for employment any employee of the Business for a period of six months after termination of this Agreement. 
 
10.04.03 Right of First Offer to Future Business. If, during the Term, Owner or its Affiliates constructs, develops
or owns any casino, other than the Business, located in Louisiana for which Owner or its Affiliates is seeking to engage a third party to manage and operate such casino, Owner shall offer to the Operators a right of first offer to manage and operate
such casino. Owner shall provide to the Operators written notice of Owner’s or its Affiliates’ intent to construct, develop or own such casino. Upon the Operators’ receipt of such written notice, Owner and the Operators shall, for a
period of ninety (90) days, commence good faith negotiations and enter into a management services agreement for the Operators management of such casino on terms and conditions similar to those contained in this Agreement and acceptable to Owner and
the Operators. If: (i) Owner and the Operators, each acting in good faith, do not execute a management services agreement for such casino within the ninety (90) day period and (2) such 90-day period is not extended, in writing, by Owner and the
Operators, then Owner shall have the right to enter into negotiations with and execute a management services agreement for such casino with casino operators other than the Operators. 
 
10.05. Best Evidence and Counterparts. This Agreement shall be executed in original and
photostatic copies and each copy bearing original signatures of the parties hereto in ink shall be deemed an original. This Agreement may be executed in several counterparts and all so executed shall constitute one agreement, binding on all parties
hereto, notwithstanding that all of the parties are not signatory to the same counterpart. 
 
10.06. Amendment or Modification. This Agreement may not be amended or modified except by a writing signed by all parties hereto. 
 
10.07. Governing Law. This Agreement shall be
governed by and construed under the laws of the State of New York. This Agreement shall be deemed to contain all provisions required by Gaming Laws and is subject to any approvals required under the Gaming Laws. To the extent any provision in this
Agreement is inconsistent with the Gaming Laws, the Gaming Laws shall govern. Should any provision of this Agreement require judicial interpretation or as to any arbitration under this Agreement, it is agreed that the court or arbitrators
interpreting or considering such provision shall not apply the presumption that the terms hereof shall be more strictly construed against a party by reason of the rule or conclusion that a document should be construed more strictly against the party
who itself or through its agent prepared the same. It is agreed and stipulated that all parties hereto have participated equally in the preparation of this Agreement and that legal counsel was consulted by each party before the execution of this
Agreement. 
 

22 

 
10.08.
Interpretation. The preamble recitals of this Agreement are incorporated into and made a part of this Agreement; titles of Sections and Articles are for convenience only and are not to be considered a part of this Agreement. All
references to years shall mean a year commencing as of the first day of January of each year. All references to the singular shall include the plural and all references to gender shall, as appropriate, include other genders. 
 
10.09. Severability. Except as expressly
provided to the contrary herein, each section, part, term or provision of this Agreement shall be considered severable, and if for any reason any section, part, term or provision herein is determined to be invalid and contrary to or in conflict with
any existing or future law or regulation by a court or governmental agency having valid jurisdiction, such determination shall not impair the operation of or have any other effect on other sections, parts, terms or provisions of this Agreement as
may otherwise remain enforceable and intelligible, and the latter shall continue to be given full force and effect and bind the parties hereto unless such survival vitiates the intent of the parties hereto, and said invalid sections, parts, terms or
provisions shall not be deemed to be a part of this Agreement. If any provisions are void or unenforceable if enforced to their maximum extent, the provisions in question shall be enforced to the maximum extent such provisions are enforceable.

 
10.10. Force Majeure. The
provisions of this Section 10.10 shall be applicable if there shall occur during the Term any strike, boycott, lockout or other labor trouble; storm, fire, earthquake or Act of God; any riot, civil disturbance, or any act of war, terrorism or
of the public enemy; the shortage, unavailability or disruption in the supply of labor, materials, fuels or the disruption of postal, electrical, telephone or other utility service; any future governmental law, ordinance, order rule or regulation;
delay attributable to the failure to obtain any Operating Permit or any Approval for reasons that are not the fault of or beyond the reasonable control of the party obligated to obtain such Permit or Approval or any other cause or contingency beyond
the respective parties’ control, but only during such time as such party is unable due to a specified reason herein to perform its obligations hereunder. If the Operators or Owner shall, as the result of any of the above-described events, fail
to timely perform any of its obligations under this Agreement, then, upon written notice to the other within five (5) Business Days of such event, such failure shall be excused and not be a breach of this Agreement by the party claiming Force
Majeure, but only to the extent occasioned by such event. Notwithstanding anything contained herein to the contrary, the provisions of this Section 10.10 shall not be applicable to the Operators’ or Owner’s obligation to make any
payments to the other pursuant to the terms of this Agreement. 
 
10.11. Waiver. None of the terms of this Agreement, including this Section 10.11, or any term, right or remedy hereunder shall be deemed waived unless such waiver is in writing and signed by the party to be
charged therewith and in no event by reason of any failure to assert or delay in asserting any such term, right or remedy or similar term, right or remedy hereunder. 
 
10.12. Definitions. All capitalized terms referenced or used in this Agreement and not
specifically defined herein shall have the meaning set forth on Exhibit “A”, which is attached hereto and incorporated herein by this reference. 
 
10.13. Governing Document. This Agreement shall govern in the event of any inconsistency
between this Agreement and any of the Exhibits attached hereto. 
 

23 

 
10.14.
Inspection of Facilities. Owner shall have the right, at any time during the Term, to enter upon the Facilities or any portion thereof, to inspect same. 
 
10.15. Third-Party Beneficiaries. There shall be no third-party beneficiaries with respect to
this Agreement. 
 
10.16. Regulatory
Information. Owner and the Operators shall each provide to the other parties all information pertaining to this arrangement and the Business and as to their ownership structure, corporate structure, officers and directors, stockholders’
and partners’ identity, financing, transfers of interest, etc., as shall be required by any regulatory authority with jurisdiction over the other or with respect to any federal or state security law requirement. 
 
10.17. Successors and Assigns. This Agreement
and the rights of Owner and the Operators evidenced hereby shall inure to the benefit of and be binding upon the successors and, to the extent permitted hereunder, assigns of Owner and either Operator. 
 
10.18. Dispute Resolution. The parties hereto
hereby agree that any controversy, dispute or claim arising out of or relating to this Agreement or any breach of this Agreement shall be resolved in accordance with the terms and provisions of this Section 10.18. 
 
(a) Agreement to Negotiate. Before
submitting any controversy, dispute or claim arising out of or relating to this Agreement or any breach of this Agreement to arbitration, the following procedures shall be followed: 
 

	 	i.	 	The party desiring to submit any such controversy, dispute or claim to arbitration (“Claimant”) first shall give written notice thereof to the other
party (“Recipient”) setting forth in detail the pertinent facts and circumstances relating to such controversy, dispute or claim; 

 

	 	ii.	 	Recipient shall have a period of fifteen (15) days in which to consider the controversy, dispute or claim that is the subject of the notice and to furnish in writing
to Claimant a written statement of Recipient’s position with respect thereto; 

 

	 	iii.	 	Within seven (7) days of Claimant’s receipt of Recipient’s written statement, Claimant and Recipient shall meet with a mediator, whose identity shall be
mutually agreed upon by Claimant and Recipient, in an effort to resolve amicably any difference that may exist between the respective positions of Claimant and Recipient, and, if such resolution is not achieved, either or both of Claimant and
Recipient shall have the right to submit the matter to arbitration. 

 
(b) Procedure for Arbitration. Any controversy, dispute or claim arising out of or relating to this Agreement or
any breach of this Agreement, including any dispute concerning the termination of this Agreement, that has not been resolved in accordance with Section 10.18(a) shall be settled by arbitration in Denver, Colorado in accordance with the
commercial arbitration rules of the American Arbitration Association then existing. In arbitration, this Agreement (including this provision providing for arbitration in the event of any 

 

24 

controversy, dispute or claim arising out of or relating to this Agreement or any breach of this Agreement that has not been resolved in
accordance with Section 10.18(a)) shall be specifically enforceable. Judgment upon any award rendered by an arbitrator may be entered in any court having jurisdiction. The prevailing party to an arbitration proceeding commenced hereunder
shall be entitled as a part of the arbitration award to the costs and expenses (including reasonable attorneys’ fees) of investigating, preparing and pursuing an arbitration claim as such costs and expenses are awarded by the arbitrator.

 
10.19. Operators; Generally. The
parties hereto hereby acknowledge and agree that any and all obligations or rights of the Operators hereunder may be fulfilled or exercised by either Operator, and that upon any such fulfillment or exercise by either Operator, such obligation or
right of each Operator shall be deemed fulfilled or exercised by both Operators. 
 
10.20. Effect of Amendment and Restatement; Waiver. The parties hereto hereby acknowledge and agree that the provisions of this Agreement shall be deemed effective as of February 15,
2002, the date of the Original MSA and hereby waive any breach or default by the other party hereto that shall have occurred on or prior to the date hereof. 
 
*        *        *        *        * 
 

25 

 
IN WITNESS
WHEREOF, the parties hereto have duly executed and delivered this Agreement as of the day and year first above written. 
 

	 OWNER:

	
	 THE OLD EVANGELINE DOWNS, L.L.C.

	
	 /s/    MICHAEL S.
LUZICH        

	 By:
	 	 Michael S. Luzich

	 Its:
	 	 President

	
	 OPERATORS:

	
	 PENINSULA GAMING COMPANY, LLC

	
	 /s/    MICHAEL S.
LUZICH        

	 By:
	 	 Michael S. Luzich

	 Its:
	 	 President

	
	 OED ACQUISITION, LLC

	
	 /s/    MICHAEL S.
LUZICH        

	 By:
	 	 Michael S. Luzich

	 Its:
	 	 President

 

26 

 
EXHIBIT
“A” 
 
Definitions

 
All capitalized terms referenced or used in
the Agreement and not specifically defined therein shall have the meaning set forth below in this “Exhibit A”. The article, section and paragraph and exhibit references herein refer to the Articles, Sections and Exhibits in and to
the Agreement. 
 
Affiliate. The term
“Affiliate” shall mean a Person that directly or indirectly, or through one or more intermediaries, Controls, is Controlled by, or is under common Control with the Person in question and any stockholder or partner of any Person referred to
in the preceding clause owning more than twenty-five percent (25%) or more of (i) such Person if such Person is a publicly traded corporation or (ii) an ownership or beneficial interest in any other Person. 
 
Agreement. The term “Agreement” shall
have the meaning set forth in the preamble. 
 
Annual Plan. The term “Annual Plan” shall have the meaning set forth in Section 4.14. 
 
Approval. The term Approval means any license (including the License), finding of suitability, qualification, approval or
permit by or from any Gaming Authority. 
 
Auditors. The term “Auditors” shall mean one of the five (5) largest independent certified public accounting firms in the United States at the time of their appointment selected by Owner to prepare the audited
annual Financial Statements unless otherwise agreed by Owner and the Operators. 
 
Bank Accounts. The term “Bank Accounts” shall have the meaning set forth in Section 4.11. 
 
Basic Management Fee. The term “Basic Management Fee” shall have the meaning set
forth in Section 5.02. 
 
Books and
Records. The term “Books and Records” shall have the meaning set forth in Section 4.08. 
 
Budget. The term “Budget” means any budget contemplated by the Agreement that has been approved by Owner or has
been arbitrated as set forth in the Agreement. 
 
Business. The term “Business” shall mean the conduct of all operation at the Facilities, including Gaming Activities, food service, entertainment, parking activities and all racetrack activities. 
 
Business Days. The term “Business
Days” shall mean all weekdays except those that are official holidays of the State of Louisiana or the U.S. government. Unless specifically stated as “Business Days,” a reference to “days” means calendar days. 
 

A-1 

 
Cash
Collateral and Disbursement Agreement. The term “Cash Collateral and Disbursement Agreement” shall mean that certain Cash Collateral and Disbursement Agreement, dated as of February     , 2003, among
Owner, The Old Evangeline Downs Capital Corp., U.S. Bank National Association and Abacus Project Management, Inc. 
 
Claim. The term “Claim” shall mean any allegation, claim, civil or criminal action, proceeding, charge or
prosecution which may be alleged, made, instituted or maintained against Operator, Owner, or their respective Indemnified Persons, jointly and severally, or individually, as the case may be, arising out of or based upon the ownership, condition or
use of the New Facilities or the operation or management of the Business, including, without limitation, injury to person(s) and damage to property or business by reason of any cause whatsoever in and about the New Facilities or elsewhere, and any
requirement or award relating to course of employment, working conditions, wages and/or compensation of employees or former employees at the New Facilities. 
 
Control. The term “Control” (including derivations such as “Controlled” and “Controlling”)
means with respect to a Person, the ownership of more than fifty percent (50%) or more of the beneficial interest or voting power of such Person. 
 
Debt Service. The term “Debt Service” shall mean payments (including without limitation, principal, interest and
expense reimbursement) with respect to (i) capitalized leases, as defined in accordance with Generally Accepted Accounting Principles, and (ii) all third party borrowed funds related to the Business. 
 
EBITDA. The term “EBITDA” shall mean
the earnings of the Business before interest, income taxes, depreciation and amortization; provided, however, that in calculating earnings hereunder, Management Fees payable under this Agreement shall not be deducted. 
 
Employee. The term “Employee” shall
mean any employee of Owner engaged by the Operators to work in or about the Facilities in connection with the conduct of the Business. 
 
Environmental Requirements. The term “Environmental Requirements” means all applicable present and future statues,
regulations, rules, ordinances, codes, licenses, permits, orders, approvals, plans, authorizations, concessions, franchises and similar items, of all governmental agencies, departments, commissions, boards, bureaus, or instrumentalities of the
United States, states and political subdivisions thereof and all applicable judicial, administrative, and regulatory decrees, judgments and orders relating to the protection of human health or the environment, including without limitation: (i) all
requirements, including but not limited to those pertaining to reporting, licensing, permitting, investigation and remediation of emissions, discharges, releases or threatened releases of Hazardous Materials, chemical substances, pollutants,
contaminants or hazardous or toxic substances, materials or wastes whether solid, liquid or gaseous in nature, into the air, surface water, groundwater or land, or relating to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of chemical substances, pollutants, contaminants or hazardous or toxic substances, materials or wastes, whether solid, liquid or gaseous in nature; and (ii) all requirements pertaining to the protection of the health
and safety of employees or the public. 
 

A-2 

 
Existing
Racetrack. The term “Existing Racetrack” shall mean the existing racetrack and related facilities located in Lafayette, Louisiana and owned by Owner. 
 
Facilities. The term “Facilities” shall mean the Existing Racetrack and the New
Facilities. 
 
FF&E. The term
“FF&E” shall mean all furniture, furnishings, equipment, and fixtures, including gaming equipment, computers, housekeeping and maintenance equipment, and other items necessary or appropriate to operate the Facilities. 
 
Financial Statements. The term “Financial
Statements” shall mean an income statement, balance sheet and a sources and uses of cash statement, all prepared in conformity with Generally Accepted Accounting Principles and on a basis consistent in all material respects with that of the
preceding period (except as to those changes or exceptions disclosed in such Financial Statements). 
 
Fiscal Quarter. The term “Fiscal Quarter” shall mean the four (4) quarters corresponding to the Fiscal Year
commencing on January 1, April 1, July 1 and October 1 of each Fiscal Year. In the event the Business opens on a date other than the first day of a Fiscal Quarter, “Fiscal Quarter” also shall refer to the period commencing on the Opening
Date and ending on the last day of the calendar quarter (e.g., March 31, June 30, September 30 or December 31) in which the Opening Date occurs. 
 
Fiscal Year. The term “Fiscal Year” shall mean a period beginning and ending on January 1 and December 31,
respectively. In the event the Opening Date occurs on a date other than the first day of a Fiscal Year, “Fiscal Year” shall also refer to the period commencing on the Opening Date and ending on the last day of the calendar year in which
the Opening Date occurs. In the event this Agreement terminates on a date other than the last day of a calendar year, the term “Fiscal Year” shall include the period from the first day of the Fiscal Year during which this Agreement
terminates to and including the date of such termination. 
 
Force Majeure. The term “Force Majeure” shall have the meaning set forth in Section 10.10. 
 
Gaming Activities. The term “Gaming Activities” shall mean the coin-operated machines and other casino-type
games’ conducted by the Operators at the New Facilities. 
 
Gaming Authorities. The term “Gaming Authorities” or “Authority” shall mean all agencies, authorities and instrumentalities of any state, nation or other governmental entity, or any subdivision
thereof, regulating gaming or related activities in the United States and having jurisdiction over the New Facilities or the Business. 
 
Gaming Laws. The term “Gaming Laws” shall mean any statute, ordinance, promulgation, law, rule, regulation, code,
judicial or administrative precedent or order of any court or other body of the State of Louisiana or agency or subdivision thereof which regulates the conduct of the Gaming Activities. 
 

A-3 

 
Generally Accepted Accounting Principles. The term “Generally Accepted Accounting Principles” shall mean generally accepted accounting principles as established from time to time by the American Institute of
Certified Public Accountants. 
 
Governmental
Authorities. The term “Governmental Authorities” or “Authority” means the United States, the State of Louisiana or any other political subdivision in which the Facilities are located, and any court or political
subdivision, agency, commission, board or instrumentality or officer thereof, whether federal, state, or local, having or exercising jurisdiction over Owner, the Operators or the Facilities, including without limitation, any Gaming Authority.

 
Governmental Requirements. The
term “Governmental Requirements” means all Laws and agreements with any Governmental Authority that are applicable to the acquisition, development, construction and/or renovation of the Facilities or the management or operation of the
Facilities or the business including without limitation, all Required Contracts, Approvals and any rules, guidelines or restrictions created or imposed by Governmental Authorities. 
 
Gross Revenue. The term “Gross Revenue” means all of the revenue from the operation
of the Business computed on an accrual basis from all business conducted upon, related to or from the Business in accordance with Generally Accepted Accounting Principles and shall include but not be limited to (i) the net win from gaming activities
(which is the difference between gaming wins and losses), and (ii) the amount of all sales of food, beverages, goods, wares, services, or merchandise at or from the Facilities, less (a) fifty percent (50%) of any complimentaries and (b) deposits
made in respect of progressive and other similar games except to the extent such deposits are allocable to expenses. Gross Revenue shall not include: 
 

	 	(a)	 	Any gratuities, or service charges added to a customer’s bill or statement in lieu of gratuities, which are payable to New Facilities employees;

 

	 	(b)	 	An amount equal to all credits or refunds made to customers, guests or patrons; 

 

	 	(c)	 	All sums and credits received in settlement of claims for loss or damage of FF&E or to the physical plant of the Facilities, to the extent such sums and credits
are in excess of the actual amount spent or owed to remediate such loss or damage; 

 

	 	(d)	 	All sales taxes, excise taxes, gross receipt taxes, admission taxes, entertainment taxes, tourist taxes or charges collected from casino customers or collected by
tenants or concessionaires of Owner at the Facilities; 

 

	 	(e)	 	Any and all income from the sale of FF&E outside the ordinary course of business; 

 

	 	(f)	 	Any uninsured compensation payments for claims against third parties arising out of or during the course of the operation of the Facilities (net of actual damages
incurred); 

 

A-4 

 

	 	(g)	 	Income and revenue of tenants, licensees and concessionaires of the Operators or Owner from the Facilities or any part thereof; provided, however, that all
fees, rents, commissions, percentages or other payments received from any tenant, licensee or concessionaire shall be included in Gross Revenue; 

 

	 	(h)	 	Proceeds of financing, refinancing or sale of all or a portion of the business or the Facilities or any personal property contained therein outside the ordinary
course of business; 

 

	 	(i)	 	Proceeds paid as a result of an insurable loss (unless paid for the loss or interruption of business and representing payment for damage for loss of income and
profits of the Business) after deducting any expenses of adjustment and collection; 

 

	 	(j)	 	Operator Advances and any funds advanced or investments made by the Operators; 

 

	 	(k)	 	Proceeds of condemnation and eminent domain awards, net of fees and expenses thereunder; and 

 

	 	(l)	 	Interest. 

 
Hazardous Material. The term “Hazardous Material” means any substance: (i) the presence of which requires
investigation or remediation under any federal, state or local statute, regulation, ordinance, order, action, policy or common law; or (ii) which is or becomes defined as a “hazardous waste,” “hazardous substance,” pollutant or
contaminant under any federal, state or local statute, regulation, rule or ordinance or amendments thereto, including without the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. Section 9601 et seq.),
and/or the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.); or (iii) which is toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic or otherwise hazardous and is or becomes
regulated by any governmental authority, agency, department, commission, board, agency or instrumentality of the United States, the State of Louisiana or any political subdivision thereof; or (iv) the presence of which on or about the Facilities
causes or threatens to cause a nuisance upon the Facilities or to adjacent properties or poses or threatens to pose a hazard to the health or safety of persons on or about the Facilities; or (v) the presence of which on adjacent properties could
constitute a trespass by Owner or Operator; or (vi) without limitation which contains gasoline, diesel fuel or other petroleum hydrocarbons, or any “regulated substance” as defined under the Underground Storage Tank Regulations, 40 C.F.R.
§280.12; or (vii) without limitation which contains polychlorinated bipheynols (PCBs), asbestos or urea formaldehyde foam insulation. 
 
Incentive Fee. The term “Incentive Fee” shall have the meaning set forth in Section 5.03. 
 
Indemnified Person. The term “Indemnified
Person” means as to either Owner or the Operators indemnified under Section 6.01 or Section 6.02, respectively, such party and any 

 

A-5 

Affiliate of such party, and any agents, attorneys, officers, members, directors, stockholders, consultants or employees of such party or
such Affiliate, and each person, if any, who controls such party within the meaning of Section 15 of the Securities Act of 1933, as amended, or Section 20 of the Securities Exchange Act of 1934. 
 
Jefferies Financing. The term “Jefferies
Financing” shall mean the securities to be placed by Jefferies & Company, Inc. for the purpose of developing the New Facilities. 
 
Law. The term “Law” means any statute, ordinance, promulgation, law, treaty, rule, regulation, code, judicial or
administrative precedent, code, order, judgment, writ, injunction, decree, or award of any court or any other Governmental Authority, as well as the orders or requirements of any local board of fire underwriters or any other body which may exercise
similar functions. 
 
Lender. The
term “Lender” shall mean any Person that has extended credit to Owner secured by, among other things, a mortgage encumbering the Facilities. 
 
Loan Documents. The term “Loan Documents” means all of the documents evidencing, securing and relating to any
indebtedness owing by owner to Lender, including without limitation, all promissory notes, loan agreements, mortgages, pledges, assignments, certificates, indemnities and other agreements. 
 
Management Fees. The term “Management Fees” shall mean the Basic Management Fee and
the Incentive Fee and the Reimbursables. 
 
Material Adverse Effect. The term “Material Adverse Effect” shall mean any event, condition or occurrence reasonably expected to have a material adverse effect on (i) the condition (financial or otherwise),
prospects, assets or properties of the Business, including the suspension of or material limitation on the operation thereof or (ii) this Agreement or the ability of the parties to consummate the transactions contemplated hereby. 
 
Net Revenue. The term “Net Revenue”
shall mean the difference of (i) Gross Revenue, minus (ii) promotional expenses incurred in connection with the operation of the Business. 
 
New Facilities. The term “New Facilities” shall mean the facilities comprised of: (a) an approximately 150,000
square foot building to be developed on the Site, containing a casino and grandstand, (b) a horsetrack and (c) related amenities to the foregoing. 
 
Opening Date. The term “Opening Date” shall mean the first date a revenue-paying customer is admitted to the New
Facilities to participate in Gaming Activities. 
 
Operating Expenses. The term “Operating Expenses” shall mean those necessary or reasonable operating expenses, including without limitation, gaming and other taxes and governmental charges, costs of Operating
Supplies, payroll and benefits, marketing, administration, maintenance, energy and all costs and expenses of licensing Owner’s or the Operators’ employees, incurred on behalf of Owner after the Opening Date in connection with conducting
the Business and operating the Facilities, computed on an accrual basis, deductible under Generally Accepted Accounting Principles in determining “Operating Income” (as defined 

 

A-6 

in casino industry practice) for purpose of preparing a statement of operations for the Business; provided, however, Operating
Expenses shall not include depreciation or amortization with respect to the Facilities or the FF&E or Debt Service. 
 
Operating Permits. The term “Operating Permits” shall mean Operator Operating Permits and Owner Operating Permits.

 
Operating Supplies. The term
“Operating Supplies” shall mean gaming supplies, paper supplies, cleaning materials, food and beverage, fuel, marketing materials, maintenance supplies, linen, china, glassware, silverware, kitchen utensils, uniforms and all other
consumable supplies and materials used in the operation of the Facilities. 
 
Operator Advances. The term “Operator Advances” shall have the meaning set forth in Section 2.03.02. 
 
Operator Operating Permits. The term
“Operator Operating Permits” shall mean all licenses, permits, approvals, consents and authorizations which the Operators are required to obtain from any Governmental Authority to perform and carry out their obligations under this
Agreement, including any permits or licenses the Operators are required by Law to obtain specifically related to the operation of a casino gaming operation. 
 
Operators. The term “Operators” shall have the meaning set forth in the preamble. 
 
Original MSA. The term “Original MSA”
shall have the meaning set forth in the preamble. 
 
Owner. The term “Owner” shall have the meaning set forth in the preamble. 
 
Owner Operating Permits. The term “Owner Operating Permits” shall mean all licenses, permits, approvals, consents
and authorizations from Governmental Authorities that are necessary to own, open and occupy the Facilities and operate the Business, including any permits or licenses Owner is required by Law to obtain and have in effect specifically related to the
operation of casino gaming facilities with respect thereto. 
 
Owner’s Financial Obligations. The term “Owner’s Financial Obligations” shall have the meaning set forth in Section 4.12(a). 
 
Person. The term “Person” shall mean any individual, partnership, corporation,
association or other entity, including but not limited to, any government or agency or subdivision thereof, and the heirs, executors, administrators, legal representatives, successors and assigns of such Person where the context so admits.

 
Pre-Opening Expenses. The term
“Pre-Opening Expenses” shall have the meaning set forth in Section 2.03.01. 
 
Pre-Opening Services. The term “Pre-Opening Services” shall have the meaning set forth in Section 2.02. 
 

A-7 

 
Reimbursables. The term “Reimbursables” shall mean all (i) reasonable and documented out-of-pocket developmental, legal, licensure and other out-of-pocket costs and expenses incurred by either Operator under
this Agreement, and (ii) all reasonable and documented out-of-pocket tax preparation, accounting, legal and administrative fees and expenses incurred by either Operator in connection with its direct or indirect ownership of Owner. 
 
Related Contracts. The term “Related
Contracts” shall mean any agreements, contractual arrangements or Loan Documents between Owner and any Person that relate to the Facilities or the Business. 
 
Target Date. The term “Target Date” shall mean the earlier to occur of (y) the first
date on which the casino to be developed at the New Facilities shall be Operating (as such term is defined in the Cash Collateral and Disbursement Agreement), and (z) the Operating Deadline applicable to the casino (as such term is defined in the
Cash Collateral and Disbursement Agreement). 
 
Site. The term “Site” shall mean that certain feehold interest of approximately 500 acres located on the north side of Route 31, southeast of the intersection of Highway 190 and Interstate 49 in the town of
Opelousas, Louisiana, as set forth on Exhibit B. 
 
Pre-Opening Services Fee. The term “Pre-Opening Services Fee” shall have the meaning set forth in Section 2.04. 
 
Term. The term “Term” shall have the meaning set forth in Section 1.01. 
 
Transfer. The term “Transfer” shall
mean any sale, transfer, or assignment of an interest in the Business, made directly or indirectly. 
 

A-8Standard Form of Agreement between Owner and Architect

Exhibit 10.2 
 
1997 Edition—Electronic Format 
 
AIA Document A111-1997 
 
Standard Form of Agreement Between Owner and Contractor 
where the basis for payment is the COST OF THE WORK PLUS A FEE with a negotiated Guaranteed Maximum Price 
 
AGREEMENT made as of the Twenty-fifth day of February in the year Two Thousand three (In words, indicate day, month and year) 
 
BETWEEN the Owner: 
(Name, address and other information) 
 
The Old Evangeline Downs, LLC 
7620 N.W.
Evangeline Thruway 
Carencro, Louisiana 70520 
 
and the Contractor: 
(Name, address and other
information) 
 
W.G. Yates & Sons Construction Company

200-A Lameuse Street 
Biloxi,
Mississippi 39530 
 
The Project is: 
(Name and location) 
 
Evangeline Downs 
P.O. Box 90270 
Lafayette, Louisiana 70509-0270 
 
The Architect is: 
(Name, address and other
information) 
 
KGA Architecture 
4170 South Decatur Boulevard, Suite B-5 
Las
Vegas, Nevada 89103 
 
The Owner’s Construction Manager:

KGA Architecture 
4170 South
Decatur Boulevard, Suite B-5 
Las Vegas, Nevada 89103 
 
The Noteholders’ Consultant is: 
 
ABACUS Project Management, Inc. 
303 North Central Avenue, Suite 1207 
Phoenix, Arizona 85012 

 
The Owner and Contractor agree
as follows. 
 
ARTICLE 1 THE
CONTRACT DOCUMENTS 
 
The Contract Documents consist of this
Agreement, Conditions of the Contract (General, Supplementary and other Conditions), Drawings, Specifications, Addenda issued prior to execution of this Agreement, other documents listed in this Agreement and Modifications issued after execution of
this Agreement; these form the Contract, and are as fully a part of the Contract as if attached to this Agreement or repeated herein. The Contract represents the entire and integrated agreement between the parties hereto and supersedes prior
negotiations, representations or agreements, either written or oral. An enumeration of the Contract Documents, other than Modifications, appears in Article 15. If anything in the other Contract Document is inconsistent with this Agreement, this
Agreement shall govern. 
 
ARTICLE
2 THE WORK OF THIS CONTRACT 
 
The Contractor shall fully execute
the Work described in the Contract Documents, except to the extent specifically indicated in the Contract Documents to be the responsibility of others. 
 
ARTICLE 3 RELATIONSHIP OF THE PARTIES 
 
The Contractor accepts the relationship of trust and confidence established by this Agreement and covenants with the Owner to
cooperate with the Architect and exercise the Contractor’s skill and judgment in furthering the interests of the Owner; to furnish efficient business administration and supervision; to furnish at all times an adequate supply of workers and
materials; and to perform the Work in an expeditious and economical manner consistent with the Owner’s interests. The Owner agrees to furnish and approve, in a timely manner, information required by the Contractor and to make payments to the
Contractor in accordance with the requirements of the Contract Documents. 
 
ARTICLE 4 DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION 
 
4.1 The Contractor and the Owner acknowledge that the Work is to be performed in two phases as set forth in the Schedule of Values as Phase I and Phase II. The date of commencement of Phase I shall be
the date fixed in a notice to proceed issued by the Owner. The date of commencement of Phase II shall be on December 1, 2003 unless an earlier notice to proceed has been issued by the Owner. 
 
4.2 The Contract Time for Phase I shall be measured from the date of the
Notice to Proceed. The Contract Time for Phase II shall be measured from December 1, 2003 unless an earlier notice to proceed is given by the Owner for Phase II with adequate notice to Contractor in which case the Contract Time for Phase II shall be
measured from the date of such notice to proceed. 
 
4.3 
 
4.3.1 The Contractor shall achieve
Substantial Completion of the portion of the Work performed as Phase I on or before the date which is twelve (12) months from the date fixed in the notice to proceed which has been issued by the Owner pursuant to Paragraph 4.1. The Contractor
acknowledges and agrees that time is of the essence as to such date of Substantial Completion and the Contract and the Owner each agree that the damages to be suffered by the Owner for the Contractor’s failure to complete Phase I by said date
is not susceptible to calculation. Accordingly, the Contractor and the Owner agree that the Contract Sum shall be reduced by an amount equal to $33,333 for each day that Substantial Completion of Phase I extends beyond the date which is twelve (12)
months from the date fixed in such notice to proceed subject to adjustments of this Contract Time as provided in the Contract Documents and the Owner acknowledges that such liquidated damages shall be the only damages to be recovered by the Owner
with respect to failure to achieve Substantial Completion by such date. In the event that Substantial Completion of Phase I occurs prior to the date which is twelve (12) months from the date fixed in such notice to proceed subject to adjustments of
this Contract Time as provided in the Contract 

 

2 

Documents, the Owner shall increase the Contract Sum by an amount equal to $33,333 for each day that Substantial Completion has been achieved
prior to the date which is twelve (12) months from the date fixed in such notice to proceed and Owner shall pay Contractor such amount that contract is increased as a bonus; provided, however, if the Contractor does not achieve Substantial
Completion for the portion of the Work performed as Phase II on or before November 15, 2003, the bonus may be forfeited. Any such bonus amount otherwise payable to the Contractor pursuant to the preceding sentence shall be forfeited if Owner does
not fulfill its completion obligation to the Louisiana Gaming Control Board and the Louisiana State Racing Commission due to Contractor not performing its work in accordance with the following paragraph. In the event of such forfeiture, Owner shall
have no obligation whatsoever to increase the Contract Sum as provided herein. Adjustments to Contract Sum as set forth in this Paragraph shall be by Change Order which shall be prepared by the Architect for signature by the Owner, the Contractor
and the Architect within ten (10) days after Substantial Completion of the portion of the Work to be performed as Phase II. Contractor acknowledges that any such forfeiture shall not affect its obligations to pay the amounts set forth in 4.3.2.

 
4.3.2 The Contractor shall achieve Substantial Completion of the
portion of the Work performed as Phase II on or before November 15, 2004. The Contractor acknowledges and agrees that time is of the essence as to such date of Substantial Completion and the Contractor and the Owner each agree that the damages to be
suffered by the Owner for the Contractor’s failure to complete Phase II by said date is not susceptible to calculation. Accordingly, the Contractor and the Owner agree that the Contract Sum shall be reduced by an amount equal to $20,000 for
each day that Substantial Completion of Phase II extends beyond November 15, 2004 subject to adjustments of this Contract Time as provided in the Contract Documents and the Owner acknowledges that such liquidated damages shall be the only damages to
be recovered by the Owner with respect to failure to achieve Substantial Completion by such date. In the event that Substantial Completion of Phase II occurs prior to the November 15, 2004 subject to adjustments of this Contract Time as provided in
the Contract Documents, the Owner shall increase the Contract Sum by an amount equal to $20,000 for each day that Substantial Completion has been achieved prior to November 15, 2004 and Owner shall pay Contractor such amount that contract is
increased as a bonus. Adjustments to Contract Sum as set forth in this paragraph shall be by Change Order which shall be prepared by the Architect for signature by the Owner, the Contractor and the Architect within ten (10) days after Substantial
Completion of the portion of the Work to be performed as Phase II. 
 
4.3.3 Notwithstanding anything to the contrary contained in Paragraphs 4.3.1 and 4.3.2 hereof, in addition to the liquidated damages remedy specified above, if any, Owner shall also have the right to terminate this Agreement for
Contractor’s default (beyond the expiration of applicable grace, notice and 7 day or appropriate cure periods) in failing to Substantially Complete the Work on the date which is twelve (12) months from the date fixed in the notice to proceed as
to Phase I and November 15, 2004 as to Phase II as both dates are subject to adjustments of this Contract Time as provided in the Contract Documents and shall maintain all other remedies provided for such termination in section 14.2 of the General
Conditions. 
 
ARTICLE 5 BASIS FOR
PAYMENT 
 
5.1 CONTRACT SUM

 
5.1.1 The Owner shall pay the Contractor the Contract Sum in
current funds for the Contractor’s performance of the Contract. The Contract Sum is the Cost of the Work as defined in Article 7 plus the Contractor’s Fee. 
 
5.1.2 The Contractor’s Fee is: 
 
(State a lump sum, percentage of Cost of the Work or other provision for
determining the Contractor’s Fee, and describe the method of adjustment of the Contractor’s Fee for changes in the Work.) 
 

3 

 
4 1⁄2% of the Cost of the Work. 
 
5.2 GUARANTEED MAXIMUM PRICE 
 
5.2.1 The
sum of the Cost of the Work and the Contractor’s Fee is guaranteed by the Contractor not to exceed Fifty-Two Million Dollars ($52,000,000.00), subject to additions and deductions by Change Order as provided in the Contract Documents. Such
maximum sum is referred to in the Contract Documents as the Guaranteed Maximum Price. Costs which would cause the Guaranteed Maximum Price to be exceeded shall be paid by the Contractor without reimbursement by the Owner. The GMP does not include
the “Contract Reserve Amount” of $2,739,000 which includes an allocation of $910,000 (the “Contractor’s Allocation”). The Contractor’s Allocation will be available to fund increases to the GMP in the amounts set forth
in one or more Change Orders delivered by the Contractor, the Owner and the Architect in accordance with the Contract Documents. The Contract Reserve Amount has been funded by the Owner as of the date of this Agreement. The Owner agrees that upon
delivery of a Change Order signed by the Contractor, the Change Owner will be signed by the Owner and Architect and delivered to the Disbursement Agent along with all certificates required under the Cash Collateral and Disbursement Agreement
(defined in paragraph 13.2.2 of the General Conditions) such that the portion of the Contractor’s Allocation set forth in such Change Order will be withdrawn from the Completion Reserve Account (as defined in the Cash Collateral and
Disbursement Agreement), and deposited into the Construction Disbursement Account (as defined in the Cash Collateral and Disbursement Agreement) for further disbursement in accordance with the Cash Collateral and Disbursement Agreement.

 
(Insert specific provisions if
the Contractor is to participate in any savings.) 
 
5.2.1.1
Anything herein to the contrary notwithstanding, in the event that the sum of the Cost of the Work and the Contractor’s Fee is less than the GMP (bonus payments contemplated by Paragraph 4.3 as and to the extent payable pursuant thereto, shall
increase both GMP and Cost of the Work), 50% of all such savings shall be retained by the Owner, with the remainder payable to Contractor in accordance with Paragraph 12.2 hereof; provided, that Contractor shall not be entitled to any savings with
respect to the Contract Reserve Amount. 
 
5.2.2 The Guaranteed
Maximum Price is based on the following alternates, if any, which are described in the Contract Documents and are hereby accepted by the Owner: 
 
(State the numbers or other identification of accepted alternates. If decisions on other alternatives are to be made by the Owner subsequent to the
execution of this Agreement, attach a schedule of such other alternates showing the amount for each and the date when the amount expires. 
 
5.2.3 Unit prices, if any, are as follows: 
 
5.2.4 Allowances, if any, are as follows: 
 
(Identify and state the amounts of any allowances, and state whether they
include labor, materials, or both.) 
 
Refer to Exhibit B. 
 
5.2.5 Assumptions, if any,
on which the Guaranteed Maximum Price is based are as follows: 
 
Refer to Exhibit C. 
 
5.2.6 As the Drawings and Specifications are not finished at the time the GMP had been agreed upon hereunder, the Contractor has provided in the GMP for further development of the Drawings and 

 

4 

Specifications by the Architect that is consistent with the Contract Documents and reasonably inferable therefrom. Contractor acknowledges
that in accordance with its review of the Drawings and Specifications and the budget for the Project, Contractor represents that the Work can be completed pursuant to the Drawings and Specifications completed as of the date hereof in accordance with
the budget for an amount less than or equal to the GMP. The allowances set forth on Exhibit B have been agreed to by Owner and Contractor and the Owner and the Contractor believe that such allowances are reasonable. 
 
ARTICLE 6 CHANGES IN THE WORK 
 
6.1 Adjustments to the Guaranteed Maximum Price on account of changes in the
Work may be determined by any of the methods listed in Subparagraph 7.3.3 of AIA Document A201-1997. 
 
6.2 In calculating adjustments to subcontract (except those awarded with the Owner’s prior consent on the basis of cost plus a fee), the terms “cost” and “fee” as used in
Clause 7.3.3.3 of AIA Document A201-1997 and the terms “costs” and “a reasonable allowance for overhead and profit” as used in Subparagraph 7.3.6 of AIA Document A201-1997 shall have the meanings assigned to them in AIA Document
A201-1997 and shall not be modified by Articles 5, 7 and 8 of this Agreement, Adjustments to subcontracts awarded with the Owner’s prior consent on the basis of cost plus a fee shall be calculated in accordance with the terms of those
subcontracts. 
 
6.3 In calculating adjustments to the Guaranteed
Maximum Price, the terms “cost” and “costs” as used in the above-referenced provisions of AIA Document A201-1997 shall mean the Cost of the Work as defined in Article 7 of this Agreement and the terms “fee” and “a
reasonable allowance for overhead and profit” shall mean the Contractor’s Fee as defined as Subparagraph 5.1.2 of this Agreement. 
 
ARTICLE 7 COSTS TO BE REIMBURSED AND INCLUDED IN GMP 
 
7.1 COST OF THE WORK 
 
The term Cost of the Work shall mean costs necessarily incurred by the Contractor in the proper performance of the Work. Such
costs shall be at rates not higher than the standard paid at the place of the Project except with prior consent of the Owner. The Cost of the Work shall include only the items set forth in this Article 7. 
 
7.2 LABOR COSTS 
 
7.2.1 Wages of construction workers directly employed by the Contractor to
perform the construction of the Work at the site or, with the Owner’s approval, at off-site workshops. 
 
7.2.2 Wages or salaries of the Contractor’s supervisory and administrative personnel when at the site or engaged in the performance of Contractor’s services for this Project. 
 
(If it is intended that the wages or salaries of certain personnel stationed
at Contractor’s principal or other offices shall be included in the Cost of the Work, identify in Article 14 the personnel to be included and whether for all or only part of their time, and the rates at which their time will be charged to the
Work.) 
 
7.2.3 Wages and salaries of the Contractor’s
supervisory or administrative personnel engaged, at factories, workshops or on the road, in expediting the production or transportation of materials or equipment required for the Work, but only for that portion of their time required for the Work.

 
7.2.4 Costs paid or incurred by the Contractor for taxes,
insurance, contributions, assessments and benefits required by law or collective bargaining agreements and, for personnel not covered by such agreements, customary benefits such as sick leave, medical and health benefits, holidays, vacations and
pensions, provided such costs are based on wages and salaries included in the Cost of the Work under 

 

5 

Subparagraphs 7.2.1 through 7.2.3. Worker’s compensation rates shall be at manual Worker’s Compensation rates furnished by Zurich
for the State of Louisiana which are applicable to the Contractor. 
 
7.3 SUBCONTRACT COSTS 
 
7.3.1 Amounts properly billed by Subcontractors for work which has been approved by the Contractor in accordance with the Subcontract. 
 
7.4 COSTS OF MATERIALS AND EQUIPMENT INCORPORATED IN THE COMPLETED CONSTRUCTION 
 
7.4.1 Costs, including transportation and storage, of materials and equipment
incorporated or to be incorporated in the completed construction. 
 
7.4.2 Costs of materials described in the preceding Subparagraph 7.4.1 in excess of those actually installed to allow for reasonable waste and spoilage. Unused excess materials, if any, shall become the Owner’s property at the
completion of the Work or, at the Owner’s option, shall be sold by the Contractor. Any amounts realized from such sales shall be credited to the Owner as a deduction from the Cost of the Work. 
 
7.5 COSTS OF OTHER MATERIALS AND EQUIPMENT,
TEMPORARY FACILITIES AND RELATED ITEMS 
 
7.5.1 Costs, including
transportation and storage, installation, maintenance, dismantling and removal of materials, supplies, temporary facilities, machinery, equipment, and hand tools not customarily owned by construction workers, that are provided by the Contractor at
the site and fully consumed in the performance of the Work; and cost (less salvage value) of such items if not fully consumed, whether sold to others or retained by the Contractor. Cost for items previously used by the Contractor shall mean fair
market value. 
 
7.5.2 Rental charges for temporary facilities,
machinery, equipment, and hand tools not customarily owned by construction workers that are provided by the Contractor at the site, whether rented from the Contractor or others, and costs of transportation, fuel, oil, grease, installation, minor
repairs and replacements, dismantling and removal thereof. Internal rental rates of equipment shall be at 90% of current Blue Book rates. 
 
7.5.3 Costs of removal of debris from the site. 
 
7.5.4 Costs of document reproductions, facsimile transmissions and long-distance telephone calls, postage and parcel delivery
charges, telephone service at the site, cellular phone charges and pager services, photographs, and reasonable petty cash expenses of the site office. 
 
7.5.5 That portion of the reasonable expenses of the Contractor’s personnel incurred while traveling in discharge of duties connected with the Work.

 
7.5.6 Costs of materials and equipment suitably stored off the
site at a mutually acceptable location, if approved in advance by the Owner. 
 
7.6 MISCELLANEOUS COSTS 
 
7.6.1 That portion of insurance and bond premiums that can be directly attributed to this Contract: 
 
7.6.2 Sales, use or similar taxes imposed by a governmental authority that are related to the work including, without limitation, all taxes and fees
directly attributable to the Work including all federal, state and locate taxes, duties, excise taxes, taxes on equipment and property owned by the Contractor, and all 

 

6 

income taxes including sales and use taxes, initial and annual corporate filing fees, business privilege tax, tangible personal property
taxes on property owned by the Contractor, the Contractor’s licenses and occupational taxes, local license taxes, unemployment insurance taxes and motor carrier and fuel taxes. 
 
7.6.3 Fees and assessments for the building permit and for other permits, licenses and inspections for which the Contractor
is required by the Contract Documents to pay. 
 
7.6.4 Fees of
laboratories for tests required by the Contract Documents, except those related to defective or nonconforming Work for which reimbursement is excluded by Subparagraph 13.5.3 of AIA Document A201-1997 or other provisions of the Contract Documents,
and which do not fall within the scope of Subparagraph 7.7.3. 
 
7.6.5 Royalties and license fees paid for the use of a particular design, process or product required by the Contract Documents; the cost of defending suits or claims for infringement of patent rights arising from such requirement of
the Contract Documents; and payments made in accordance with legal judgments against the Contractor resulting from such suits or claims and payments of settlements made with the Owner’s consent. However, such costs of legal defenses, judgments
and settlements shall not be included in the calculation of the Contractor’s Fee or subject to the Guaranteed Maximum Price. If such royalties, fees and costs are excluded by the last sentence of Subparagraph 3.17.1 of AIA Document A201-1997 or
other provisions of the Contract Documents, then they shall not be included in the Cost of the Work. 
 
7.6.6 Data processing costs related to the Work, including all hardware and software costs. 
 
7.6.7 Deposits lost for causes other than the Contractor’s negligence or failure to fulfill a specific responsibility to the Owner as set forth in
the Contract Documents. 
 
7.6.8 Legal, mediation and arbitration
costs, including attorneys’ fees, other than those arising from disputes between the Owner and Contractor, reasonably incurred by the Contractor in the performance of the Work and with the Owner’s prior written approval; which approval
shall not be unreasonably withheld. 
 
7.6.9 Expenses incurred in
accordance with the Contractor’s standard personnel policy for relocation and temporary living allowances of personnel required for the Work, if approved by the Owner. 
 
7.6.10 Cost of necessary safety equipment, supplies, drug testing, safety seminars, and safety incentives. 
 
7.6.11 Meals and lodging while conducting business for the Project.

 
7.6.12 Offsite storage, warehousing and fabrication if
necessary. 
 
7.6.13 Costs incurred after completion of the Project
for warranty items that cannot be billed to Subcontractors. 
 
7.7 OTHER COSTS AND EMERGENCIES 
 
7.7.1 Any cost not specifically excluded by Article 8 which Contractor incurs in the performance of the Work or furtherance of the Project. 
 
7.7.2 Costs due to emergencies incurred in taking action to prevent threatened damage, injury or loss in case of an emergency affecting the safety of
persons and property, as provided in Paragraph 10.6 of AIA Document A201-1997. 

 

7 

 
7.7.3 Costs of repairing or
correcting damaged or nonconforming Work executed by the Contractor, Subcontractors or suppliers, provided that such damaged or nonconforming Work was not caused by negligence or failure to fulfill a specific responsibility of the Contractor and
only to the extent that the cost of repair or correction is not recoverable by the Contractor from insurance, sureties, Subcontractors or suppliers. 
 
ARTICLE 8 COSTS NOT TO BE REIMBURSED OR NOT INCLUDED IN GMP 
 
8.1 The Cost of the Work shall not include and the Owner shall have no obligation to reimburse the Contractor for:

 
8.1.1 Salaries and other compensation of the Contractor’s
personnel stationed at the Contractor’s principal office or offices other than the site office, except as specifically provided in Subparagraphs 7.2.2 and 7.2.3 or as may be provided in Article 14. 
 
8.1.2 Expenses of the Contractor’s principal office and offices other
than the site office. 
 
8.1.3 Overhead and general expenses,
except as may be expressly included in Article 7. 
 
8.1.4 The
Contractor’s capital expenses, including interest on the Contractor’s capital employed for the Work. 
 
8.1.5 Rental costs of machinery and equipment, except as specifically provided in Subparagraph 7.5.2. 
 
8.1.6 Except as provided in Subparagraph 7.7.3 of this Agreement, costs due to the negligence or failure to fulfill a specific responsibility of the
Contractor, Subcontractors and suppliers or anyone directly or indirectly employed by any of them for whose acts any of them may be liable. 
 
8.1.7 Any cost not specifically and expressly described in Article 7. 
 
8.1.8 Costs, other than costs included in Change Orders approved by the Owner, that would cause the Guaranteed Maximum Price
to be exceeded. 
 
ARTICLE 9
DISCOUNTS, REBATES AND REFUNDS 
 
9.1 Cash discounts obtained on
payments made by the Contractor shall accrue to the Owner if (1) before making the payment, the Contractor included them in an Application for Payment and received payment therefor from the Owner, or (2) the Owner has deposited funds with the
Contractor with which to make payments; otherwise, cash discounts shall accrue to the Contractor. Trade discounts, rebates, refunds and amounts received from sales of surplus materials and equipments shall accrue to the Owner, and the Contractor
shall make provisions so that they can be secured. 
 
9.2 Amounts
that accrue to the Owner in accordance with the provisions of Paragraph 9.1 shall be credited to the Owner dollar-for-dollar as a deduction from the Cost of the Work. 
 
ARTICLE 10 SUBCONTRACTS AND OTHER AGREEMENTS 
 
10.1 Those portions of the Work that the Contractor does not customarily
perform with the Contractor’s own personnel shall be performed under subcontracts or by other appropriate agreements with the Contractor. Each of the Owner and the Contractor may designate specific persons or entities from whom the Contractor
shall obtain bids and the Owner and the Contractor each shall have the right to approve each such person or entity and the bids submitted thereby, such approval not to be unreasonably withheld or delayed. The Contractor shall obtain bids from
Subcontractors and from suppliers of 

 

8 

materials or equipment fabricated especially for the Work and shall deliver such bids to the Architect. The Owner shall then determine, with
the advice of the Contractor and the Architect, which bids will be accepted. The Contractor shall not be required to contract with anyone to whom the Contractor has reasonable objection. 
 
10.2 If a specific bidder among those whose bids are delivered by the Contractor to the Architect (1) is recommended to the
Owner by the Contractor, (2) is qualified to perform that portion of the Work; and (3) has submitted a bid that conforms to the requirements of the Contract Documents without reservations or exceptions, but the Owner requires that another bid be
accepted, then the Contractor may require that a Change Order be issued to adjust the Guaranteed Maximum Price by the difference between the bid of the person or entity recommended to the Owner by the Contractor and the amount of the subcontract or
other agreement actually signed with the person or entity designated by the Owner. 
 
10.3 Subcontracts or other agreements shall conform to the applicable payment provisions of this Agreement, and shall not be awarded on the basis of cost plus a fee without the prior consent of the Owner. 
 
10.4 Notwithstanding the above, Owner and Contractor agree that there has been
a partnered effort in attempting to meet the Owner’s budgets by select Subcontractors. Owner and Contractor further agree that the following preferred Subcontractors will be selected by the Contractor. 
 
Edwards Electric 
Bernhard Mechanical 
Ellis Steel 
Ambianti USA 
Yates Heavy Division 
Yates Drywall 
 
Notwithstanding the foregoing, the Contractor agrees to request at least (i)
two bids from qualified Subcontractors in addition to any bid submitted by (A) Ambianti USA for the portion of Work to be performed by Ambianti USA, and (B) Yates Drywall for the portion of the Work to be performed by Yates Drywall and (ii) four
bids (if available) from qualified Subcontractors in addition to any bid submitted by Yates Heavy Division for the portion of the Work to be performed by Yates Heavy Division. It is understood and agreed by the Owner and the Contractor that Ambianti
USA, Yates Heavy Division and Yates Drywall shall have the right to perform their respective portions of the Work if their subcontract covering such portions of the Work is equal to or more favorable to the Owner as the subcontract which such other
bidders have agreed to enter into. Contractor shall submit a bid schedule for site work which shall be reasonably approved by Owner and Contractor. If there is a delay in the site work bid process and it is affecting the schedule, Contractor shall
recommend a course of action and the Owner shall approve such action, if reasonable. 
 
ARTICLE 11 ACCOUNTING RECORDS 
 
The Contractor shall keep full and detailed accounts and exercise such controls, in each case, as may be necessary and which is customary for projects of
this type for proper financial management under this Contract, and the accounting and control systems shall be satisfactory to the Owner. The Owner and the Owner’s accountants shall be afforded access to, and shall be permitted to audit and
copy, the Contractor’s records, books, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to this Contract, and the Contractor shall preserve these for a period of three
years after final payment, or for such longer period as may be required by law. 
 
ARTICLE 12 PAYMENTS 
 

9 

 
12.1 PROGRESS PAYMENTS 
 
12.1.1 Applications for
Payment shall be prepared by the Contractor and delivered to the Owner’s Construction Manager on or before the last day of each calendar month covering Work completed in accordance with the Contract Documents prior to the end of such calendar
month. Such Applications for Payment shall include all information required by the Form of Construction Disbursement Request and Certificate (attached to the Cash Collateral and Disbursement Agreement in the form of Exhibit D-1), the form of
Certificate of General Contractor for Disbursement Request for Construction Expenses (attached to the Cash Collateral and Disbursement Agreement as Exhibit 3 to Exhibit D-1) and such other supporting information as is reasonably required by the
Owner’s Construction Manager, the Architect, the Noteholders’ Consultant, the Trustee and/or the Owner. Such Application for Payment shall be approved in the following manner: 
 
          .1 The Contractor shall execute such Application for Payment and
deliver it together with all supporting materials to the Owner’s Construction Manager. Within two business days after deliver of such Application for Payment and supporting materials to the Owner’s Construction Manager, the Contractor
shall execute all certificates required to be delivered by it under the Cash Collateral and Disbursement Agreement with respect to an advance of proceeds thereunder and deliver such certificates to the Owner. 
 
          .2 Within two
business days after receipt, the Owner’s Construction Manager shall review such Application for Payment and supporting materials. After such Application for Payment has been amended to include any revisions which have been approved by the
Owner’s Construction Manager and the Contractor, the Owner’s Construction Manager shall acknowledge its approval of such Application for Payment and supporting materials to the Architect. Within two business days after delivery of such
Application for Payment and supporting materials to the Architect, the Owner’s Construction Manager shall deliver to the Owner all certificates (duly executed) required to be delivered by it under the Cash Collateral and Disbursement Agreement
with respect to an advance of proceeds thereunder. 
 
          .3 Within two business days after receipt, the Architect shall review such Application for Payment and supporting materials. After such Application for Payment has been
amended to include any revisions which have been approved by the Owner’s Construction Manager, the Contractor and the Architect, the Architect shall acknowledge its approval of such Application for Payment and supporting materials to the
Noteholders’ Consultant. 
 
          .4 Within two business days after receipt, the Noteholders’ Consultant shall review such Application for Payment and supporting materials. After such Application for
Payment has been amended to include any revisions which have been approved by the Owner’s Construction Manager, the Contractor, the Architect and the Noteholders’ Consultant, the Noteholders’ Consultant shall acknowledge its approval
of such Application for Payment and supporting materials and deliver such approved Application for Payment and supporting materials to the Owner together with all certificates (duly executed) required to be delivered by it under the Cash Collateral
and Disbursement Agreement with respect to an advance of proceeds thereunder. 
 
          .5 Within two days after receipt, the Owner shall review such Application for Payment and supporting materials. After such Application for Payment has been amended to
include any revisions which have been approved by the Owner’s Construction Manager, the Contractor, the Architect, the Noteholders’ Consultant and the Owner, the Owner shall request the Architect to issue its Certificate of Payment. Upon
receipt of such Certificate of Payment, the Owner shall deliver to the Disbursement Agent (i) such approved Application for Payment and supporting materials, (ii) the Certificate for Payment received from the Architect, (iii) all certificates to be
delivered by the Owner with respect to an advance of proceeds under the Cash Collateral and Disbursement Agreement, (iv) all certificates received from the 

 

10 

Owner’s Construction Manager, the Architect and the Noteholders’ Consultant pursuant to this Paragraph and (v) a request for an
advance of proceeds under the Cash Collateral and Disbursement Agreement. 
 
          .6 Based upon such Application for Payment and Certificate for Payment, the Owner shall make progress payments on account of the Contract Sum to the Contractor as provided
below. 
 
12.1.2 Provided that an Application for Payment together
with all reasonable supporting information required by the Owner’s Construction Manager, the Architect, Noteholders’ Consultant and the Owner and all certificates which are required to be executed and delivered by the Contractor with
respect to an advance of proceeds under the Cash Collateral and Disbursement Agreement are received by the Owner’s Construction Manager not later than the last day of a calendar month, the Owner shall make payment to the Contractor in the
account set forth in the Certificate of Payment presented to the Owner by the Architect in accordance with Paragraph 12.1.1 not later than the fifteenth (15th) day of the next calendar month. If an Application for Payment is received by the
Owner’s Construction Manager after the last day of a calendar month or if additional supporting or supplemental information which has been reasonably requested by the Owner’s Construction Manager, the Architect, the Noteholders’
Consultant and/or the Owner is delivered after the last day of a calendar month, payment of the amount set forth in the Certificate of Payment shall be made by the Owner not later than fifteen (15) days after the date on which the Owner’s
Construction Manager receives the Application for Payment together with all required supporting information. 
 
12.1.4 With each Application for Payment, the Contractor shall submit payrolls, petty cash accounts, receipted invoices or invoices with check vouchers attached through the end of the calendar month
immediately preceding the calendar month covered by the applicable Application for Payment (other than with respect to (x) the first Application for Payment in which case such information shall be that which is reasonably available to the Contractor
on the last day of the calendar month covered by such first Application for Payment and (y) the final Application for Payment in which case such information shall be current and complete), and any other evidence required by the Owner or Architect to
demonstrate that cash disbursements already made by the Contractor on account of the Cost of the Work equal or exceed (1) progress payments already received by the Contractor; less (2) that portion of those payments attributable to the
Contractor’s Fee; plus (3) payrolls for the period covered by the present Application for Payment. 
 
12.1.5 Each Application for Payment shall be based on the most recent schedule of values approved by the Contractor, the Architect, the Owner, the Owner’s Construction Manager and, if necessary,
the Noteholders’ Consultant in accordance with the Contract Documents. The schedule of values shall allocate the entire Guaranteed Maximum Price among the various portions of the Work, except that the Contractor’s Fee shall be shown as a
single separate item. The schedule of values shall be prepared in such form and supported by such data to substantiate its accuracy as the Architect, the Owner, the Owner’s Construction Manager and the Noteholders’ Consultant may require.
This schedule, unless objected to by the Architect and the Owner, the Owner’s Construction Manager and the Noteholder’s Consultant, shall be used as a basis for reviewing the Contractor’s Applications for Payment. 
 
12.1.6 Applications for Payment shall show the percentage of completion of
each portion of the Work as of the end of the period covered by the Application for Payment. The percentage of completion shall be the lesser of (1) the percentage of that portion of the Work which has actually been completed; or (2) the percentage
obtained by dividing (a) the expense that has actually been incurred by the Contractor on account of that portion of the Work for which the Contractor has made or intends to make actual payment prior to the next Application for Payment by (b) the
share of the Guaranteed Maximum Price allocated to that portion of the Work in the schedule of values. 
 

11 

 
12.1.7 Subject to other
provisions of the Contract Documents, the amount of each progress payment shall be computed as follows: 
 
          .1 take that portion of the Guaranteed Maximum Price properly allocable to completed Work as determined by multiplying the percentage of
completion of each portion of the Work by the share of the Guaranteed Maximum Price allocated to that portion of the Work in the schedule of values. Pending final determination of cost to the Owner of changes in the Work, amounts not in dispute
shall be included as provided in Subparagraph 7.3.8 of AIA Document A201-1997; 
 
          .2 add that portion of the Guaranteed Maximum Price properly allocable to materials and equipment delivered and suitably stored at the site for subsequent incorporation in
the Work, or if approved in advance by the Owner, suitably stored off the site at a location agreed upon in writing. 
 
          .3 add the Contractor’s Fee. The Contractor’s Fee shall be computed upon the Cost of
the Work described in the two preceding Clauses at the rate stated in Subparagraph 5.1.2; 
 
          .4 subtract the aggregate of previous payments made by the Owner; 
 
          .5 subtract the shortfall, if any, indicated by the Contractor in the documentation required
by Paragraph 12.1.4 to substantiate prior Applications for Payment, or resulting from errors subsequently discovered by the Owner’s accountants in such documentation; and 
 
          .6 subtract amounts, if any, for which the Architect has withheld
or nullified a Certificate for Payment as provided in Paragraph 9.5 of AIA Document A201-1997. 
 
12.1.8 Except with the Owner’s prior approval, payments to Subcontractors shall be subject to retainage of not less than ten percent (10%). The Owner and the Contractor shall agree upon a mutually
acceptable procedure for review and approval of payments and retention for Subcontractors. Retainage shall be released upon completion of each respective phase. Contractor shall not request payment from Owner for any sums being withheld as retainage
from any Subcontractor until such time as the applicable retainage must be paid to the Subcontractor in accordance with its subcontract. 
 
12.1.9 In taking action on the Contractor’s Applications for Payment, the Architect, the Owner, the Owner’s Construction Manager and the
Noteholders’ Consultant shall be entitled to rely on the accuracy and completeness of the information furnished by the Contractor and shall not be deemed to represent that the Architect, the Owner, the Owner’s Construction Manager or the
Noteholders’ Consultant has made a detailed examination, audit or arithmetic verification of the documentation submitted in accordance with Subparagraph 12.1.4 or other supporting data; that the Architect, the Owner, the Owner’s
Construction Manager or the Noteholders’ Consultant has made exhaustive or continuous on-site inspections or that the Architect, the Owner, the Owner’s Construction Manager or the Noteholders’ Consultant has made examinations to
ascertain how or for what purposes the Contractor has used amounts previously paid on account of the Contract. Such examinations, audits and verifications, if required by Owner, will be performed by the Owner’s accountants acting in the sole
interest of the Owner. 
 
12.2
FINAL PAYMENT 
 
12.2.1 Final payment, constituting the entire
unpaid balance of the Contract Sum, shall be made by the Owner to the Contractor when: 
 
          .1 the Contractor has fully performed the Contract except for the Contractor’s responsibility to correct Work as provided in Subparagraph 12.2.2 of AIA
Document A201-1997, and to satisfy other requirements, if any, which extend beyond final payment; and 
 

12 

 
          .2 a final Certificate for Payment has been issued by the Architect after approval by the Owner’s Construction Manager, the Noteholders’ Consultant and the Owner.

 
12.2.2 The Owner’s final payment to the Contractor shall be
made no later than 30 days after the issuance of the Architect’s final Certificate for Payment. 
 
12.2.3 The Owner’s accountants will review and report in writing on the Contractor’s final accounting within 30 days after delivery of the final accounting to the Architect by the Contractor.
Based upon such Cost of the Work as the Owner’s accountants report to be substantiated by the Contractor’s final accounting and provided the other conditions of Subparagraph 12.2.1 have been met, within seven (7) days after approval of the
written report by the Owner’s accountants, the Owner’s Construction Manager and the Noteholders’ Consultant, either issue to the Owner a final Certificate for Payment with a copy to the Contractor, or notify the Contractor and the
Owner in writing of the Architect’s reasons for withholding a certificate as provided in Subparagraph 9.5.1 of the AIA Document A201-1997 in the form attached to this Agreement. The time periods stated in this Subparagraph 12.2.3 supersede
those stated in Subparagraph 9.4.1 of the AIA Document A201-1997. 
 
12.2.4 If the Owner’s accountants report the Cost of the Work as substantiated by the Contractor’s final accounting to be less than claimed by the Contractor, the Contractor shall be entitled to demand arbitration of the
disputed amount without a further decision of the Architect. Such demand for arbitration shall be made by the Contractor within 30 days after the Contractor’s receipt of a copy of the Architect’s final Certificate for Payment; failure to
demand arbitration within this 30-day period shall result in the substantiated amount reported by the Owner’s accountants becoming binding on the Contractor. Pending a final resolution by arbitration, the Owner shall pay the Contractor the
amount certified in the Architect’s final Certificate for Payment. 
 
12.2.5 If, subsequent to final payment and at the Owner’s request, the Contractor incurs costs described in Article 7 and not excluded by Article 8 to correct defective or nonconforming Work which was not otherwise the
responsibility of the Contractor to install, the Owner shall reimburse the Contractor such costs and the Contractor’s Fee applicable thereto on the same basis as if such costs had been incurred prior to final payment, but not in excess of the
Guaranteed Maximum Price. If the Contractor has participated in savings as provided in Paragraph 5.2, the amount of such savings shall be recalculated and appropriate credit given to the Owner in determining the net amount to be paid by the Owner to
the Contractor. 
 
ARTICLE 13
TERMINATION OR SUSPENSION 
 
13.1 The Contract may be terminated
by the Contractor, or by the Owner for convenience, as provided in Article 14 of AIA Document A201-1997. However, the amount to be paid to the Contractor under Subparagraph 14.1.3 of AIA Document A201-1997 shall not exceed the amount the Contractor
would be entitled to receive under Paragraph 13.2 below, except that the Contractor’s Fee shall be calculated on. 
 
13.2 The Contract may be terminated by the Owner for cause as provided in Article 14 of AIA Document A201-1997. The amount, if any, to be paid to the
Contractor under Subparagraph 14.2.4 of AIA Document A201-1997 shall not cause the Guaranteed Maximum Price to be exceeded, nor shall it exceed an amount calculated as follows: 
 
13.2.1 Take the Cost of the Work incurred by the Contractor to the date of termination; 
 
13.2.2 Add the Contractor’s Fee computed upon the Cost of the Work to
the date of termination at the rate stated in Subparagraph 5.1.2; and 
 

13 

 
13.2.3 Subtract the aggregate
of previous payments made by the Owner. 
 
13.3 The Owner shall
also pay the Contractor fair compensation as identified in Paragraph 7.5.2, either by purchase or rental at the election of the Owner, for any equipment owned by the Contractor that the Owner elects to retain and that is not otherwise included in
the Cost of the Work under Subparagraph 13.2.1. To the extent that the Owner elects to take legal assignment of subcontracts and purchase orders (including rental agreements), the Contractor shall, as a condition of receiving the payments referred
to in this Article 13, execute and deliver all such papers and take all such steps, including the legal assignment of such subcontracts and other contractual rights of the Contractor, as the Owner may require for the purpose of fully vesting in the
Owner the rights and benefits of the Contractor under such subcontracts or purchase orders. 
 
13.4 The Work may be suspended by the Owner as provided in Article 14 of AIA Document A201-1997; in such case, the Guaranteed Maximum Price and Contract Time shall be increased as provided in
Subparagraph 14.3.2 of AIA Document A201-1997 except that the term “profit” shall be understood to mean the Contractor’s Fee as described in Subparagraphs 5.1.2 and Paragraph 6.4 of this Agreement. 
 
ARTICLE 14 MISCELLANEOUS PROVISIONS

 
14.1 Where reference is made in this Agreement to a provision
of AIA Document A201-1997 or another Contract Document, the reference refers to that provision as amended or supplemented by other provisions of the Contract Documents. 
 
14.2 Payments due and unpaid under the Contract from either the Contractor or the Owner to the other shall bear interest at a
per annum rate equal to the Prime Rate as set forth in The Wall Street Journal plus 2%. 
 
(Usury laws and requirements under the Federal Truth in Lending Act, similar state and local consumer credit laws and other regulations at the Owner’s and Contractor’s principal places of business, the location of
the Project and elsewhere may affect the validity of this provision. Legal advice should be obtained with respect to deletions or modifications, and also regarding requirements such as written disclosures or waivers.) 
 
14.3 The Owner’s representative is: 
(Name, address and other information.) 
 
Michael Luzich or his designee 
Old Evangeline
Downs, LLC 
7620 N.E. Evangeline Thruway 
Carencro, Louisiana 70520 
 
14.4 The
Contractor’s representative is: 
(Name, address and other information.) 
 
William Yates 
W.G. Yates & Sons Construction Company 
200-A Lameuse Street 
Biloxi, Mississippi 39530 
 
14.5 Neither the Owner’s nor the Contractor’s representative shall be changed without ten days’ written notice to the other party. 
 

14 

 
14.6 Other provisions: 
 
14.6.1 Bailey Braswell,
Dan DuBose, David Bland and their respective staffs shall be available as reasonably required from time to time with the costs thereof being included in the Guaranteed Maximum Price; provided, however, that Bailey Braswell (and appropriate members
of his staff) shall be present at weekly site meetings upon the commencement of construction of the Project until such time as the Contractor and the Owner have agreed that such weekly attendance is not required at which time attendance shall be
reduced to at least once each calendar month. 
 
14.6.2 The
Contractor acknowledges and agrees that payments to the Contractor for the Work by Owner are being funded from the Construction Disbursement Account which will be established in accordance with the Cash Collateral and Disbursement Agreement. The
Cash Collateral and Disbursement Agreement has been reviewed and approved by the Contractor and the Contractor acknowledges the terms thereof. The Noteholders’ Consultant has been appointed by the Trustee under the Cash Collateral and
Disbursement Agreement to review and inspect the Work, review Applications for Payment and approve and authorize disbursements from the Construction Disbursement Account. In connection with the foregoing: 
 
14.6.2.1 The Contractor agrees to execute and deliver to the Disbursement
Agent and the Trustee the “Contracting Party’s Consent to Collateral Assignment of the Contract” in the form of Exhibit H to the Cash Collateral and Disbursement Agreement. The Contractor agrees to review and if approved execute all
other documents reasonably required by the Disbursement Agent, the Trustee or the Noteholders’ Consultant with respect to the construction of the Project. The Contractor shall incorporate into all Subcontracts a provision obligating its
Subcontractors to continue to perform under their subcontracts in the event the Trustee or its agents take possession of the Project site. 
 
14.6.2.2 Notwithstanding the terms and provisions of the Contract Documents, the Contractor acknowledges that the Cash Collateral and Disbursement
Agreement has conditions and requirements which must be satisfied by or on behalf of the Owner with respect to matters dealing with the Project, including without limitation, matters relevant to progress payments, retainage, change orders, changes
to the Contract Documents, and inspection and approval of the Work by the Noteholders’ Consultant. The terms of the Contracting parties’ Consent to Collateral Assignment of Contract shall govern any failure by Owner to comply with this
agreement as a result of complying with the Cash Collateral and Disbursement Agreement. 
 
14.6.2.3 All reimbursements or payments made by the Contractor to the Owner shall be deposited directly into the Construction Disbursement Account. 
 
14.6.2.4 All indemnities contained in the Contract Documents which run in favor of Owner shall also run in favor of the
Noteholders’ Consultant, the Disbursement Agent and the Trustee. 
 
14.6.2.5 All provisions in the Subcontracts which accrue specifically to the benefit of Owner shall also provide they shall also run to the benefit of the Trustee. 
 
14.6.2.6 Contractor acknowledges it has reviewed the Cash Collateral and Disbursement Agreement including the certificates
which Contractor shall be asked to provide in the forms attached to the Cash Collateral and Disbursement Agreement as (i) Exhibit 8 to Exhibit B-1, (ii) Exhibit 3 to Exhibit D-1, (iii) Exhibit 3 to Exhibit E, (iv) Exhibit 3 to Exhibit F-1, and (v)
Exhibit 3 to Exhibit F-2, and to the extent that the factual assertions of Contractor required therein shall be true, Contractor shall deliver such 

 

15 

certificates as and when required by the Owner in the manner and within the time periods required by the Cash Collateral and Disbursement
Agreement. 
 
ARTICLE 15
ENUMERATION OF CONTRACT DOCUMENTS 
 
15.1 The Contract Documents,
except for Modifications issued after execution of this Agreement, are enumerated as follows: 
 
15.1.1 The Agreement is this executed 1997 edition of the Standard Form of Agreement Between Owner and Contractor, AIA Document A111-1997. 
 
15.1.2 The General Conditions are the 1997 edition of the General Conditions of the Contract for Construction. AIA Document
A201-1997 as modified by agreement of Owner and Contractor. 
 
15.1.3 The Supplementary and other Conditions of the Contract are those contained in the Project Manual dated    , and are as follows: 
 

	 Document
	 	 Title
	 	 Pages

 
15.1.4 The
Specifications are those contained in the Project Manual dated as in Subparagraph 15.1.3, and are as follows: 
(Either list the
Specifications here or refer to an exhibit attached to this Agreement.) 
 

	 Section
	 	 Title
	 	 Pages

 
15.1.5 The Drawings are
as follows, and are dated , unless a different date is shown below: 
(Either list the Drawings here or refer to an exhibit attached to this
Agreement.) 
 

	 Number
	 	 Title
	 	 Date

 
Refer to Exhibit A-1

 
15.1.6 The Addenda, if any, are as follows: 
 

	 Number
	 	 Date
	 	 Pages

 
Portions of Addenda
relating to bidding requirements are not part of the Contract Documents unless the bidding requirements are also enumerated in this Article 15. 
 
15.1.7 Other Documents, if any, forming part of the Contract Documents are as follows: 
(List here any additional documents, such as a list of alternates that are intended to form part of the Contract Documents. AIA Document A201-1997 provides that bidding requirements such as
advertisement or invitation to bid, Instructions to Bidders, sample forms and the Contractor’s bid are not part of the Contract Documents unless enumerated in this Agreement. They should be listed here only if intended to be part of the
Contract Documents.) 
 
Exhibit
A-1, Drawing Log 
 
Exhibit A-2,
Owners FF&E included in Division 12 of GMP Estimate 
 
Exhibit B, Allowance 
 
Exhibit C, Assumptions & Clarifications 
 
Exhibit D, Schedule of Values 
 
ARTICLE 16 INSURANCE AND BONDS 
 

16 

 
(List required limits of
liability for insurance and bonds. AIA Document A201-1997 gives other specific requirements for insurance and bonds.) 
 
Bond premium is not to exceed 1.69% of contract amount. 
 
This Agreement is entered into as of the day and year first written above and is executed in at least three original copies, of which one is to be
delivered to the Contractor, one to the Architect for use in the administration of the Contract, and the remainder to the Owner. 
 

	 The Old Evangeline Downs, LLC
	 	 	 	 W.G. Yates & Sons Construction Company

	
	 /s/    MICHAEL S.
LUZICH        

	 	 	 	 /s/    WILLIAM
YATES        

	 OWNER (Signature)
Michael S. Luzich, President
(Printed name and
title)
	 	 	 	 CONTRACTOR (Signature)
William Yates, President
(Printed name and
title

 

17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]