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Claims should be promptly submitted to the insurance carrier, and if said claims are less than the deductible, they may be settled by Manager, in its sole discretion. Manager shall not be responsible for the preparation or filing of any federal, state or local income tax or franchise tax returns on behalf of Owner. On behalf of, for the benefit of, at the expense of the Owner, and in accordance with Standard Operating Procedures jointly prepared by Owner and Manager, arrange for an appropriate security sufficient to reasonably assure safety of customers, personnel, monies, and property of each Mississippi Casino facility. Once Owner and Manager agree to a final budget for the Pre-Operating Phase, any expenses and costs incurred by Manager in excess of those set forth in the final budget must be approved by Owner. Upon termination of this Agreement by either party, Manager shall turn over to Owner all property, books and records of the Casino, and Owner and Manager shall fully cooperate with each other in connection with all matters relating to the Casino which took place prior to termination. During all hours in which the Casino is in operation, the Owner shall maintain on or about the Casino premises a person authorized to sign checks on behalf of the Owner. If any provisions of this Agreement shall be determined by a court of competent jurisdiction or by the Mississippi Gaming Commission to be illegal, invalid or unenforceable, such determination shall not effect or impair the validity, legality, or enforceability of the remaining provisions contained herein. Initial Term Fees. Neither this agreement nor any other rights or obligations hereunder may be assigned or transferred by either party without express written consent of Manager and Owner, which consent shall not be unreasonably withheld. Manager shall pay from such accounts, expenses reasonably required for the operation of each Mississippi Casino, including without limitation, all gaming equipment taxes and fees, and all assessments and charges of every kind imposed by any governmental authority having jurisdiction and interest and penalties thereon; license fees, permit fees, and insurance appraisal fees; fines, penalties and court disbursements incurred in connection with the operation of each Mississippi Casino; premiums on policies and insurance and all expenses and payments authorized by this Agreement. Notwithstanding the foregoing, Owner and Manager shall mutually agree upon the hiring of executives and key employees and all personnel recruited shall be screened by Owner and Manager. Certificates of all policies of insurance and duplicates thereof shall be delivered to the Owner, Manager, any holder of any deed of trust or to such other persons or governmental authorities as Owner shall direct. This Agreement shall be governed by and construed in accordance with the laws of the United States where applicable and otherwise by the laws of the State of Mississippi, except those pertaining to choice of law.{/INSERTKEYS}{/PARAGRAPH} Any security force shall be comprised of security officers employed directly by the Owner or provided under a contract with a third party and the Owner. Damage or Destruction of Casino. The Manager shall also receive, consider and handle the complaints of all guests or users of all Mississippi Casino facilities or gaming devices. In such case, the proceeds of insurance shall be made available to Manager for this purpose; provided that, Owner shall have the right to ensure that such proceeds of insurance shall be applied to such restoration. Owner and Manager shall jointly prepare line item budgets for pre-opening and operations. Notwithstanding the foregoing, the Manager shall not resume its place in this Agreement and the Interim Manager shall not be terminated if the Interim Manager shall not have been employed by the Owner for the Minimum Employment Period. The term of this Agreement shall commence on the first day of actual Mississippi Gaming Operations at the first Mississippi Casino to commence Gaming Operations. Michael F. Owner shall perform such duties and obligations as may be provided for elsewhere in this Agreement including, but not limited to, construction and decoration of each Mississippi Casino in a timely manner and in consultation with the Manager. At the end of each month, Manager shall provide Owner with a statement which itemizes for that month both the funds advanced to it by Owner and the cash disbursements made during last month. Manager shall use its best efforts to do and perform all services, acts, or things necessary to oversee the design, layout, construction, and interior decoration of the Mississippi Casinos and shall assume full responsibility for employee training and other pre-opening activities of each Mississippi Gaming Operation, and, thereafter, upon opening of each Mississippi Casino, to direct, supervise and manage the operation of each Mississippi Casino. Arrange for the making or installation, in the name of and at the expense of Owner, of alterations, repairs, decorations, replacements, equipment or installations. Owner Facsimile No. In addition, Manager will select with the prior approval of the Owner and purchase for the account of Owner, all related accessory equipment, including, but not limited to, gaming machine tokens, chips and cards for table games, coin handling equipment, currency counters, wrapping machines, special tools and other equipment as well as spare parts. During the pre-Operational Phase i. Manager shall be responsible for obtaining any United States visa necessary for the Designated Executive Manager to work in the United States. Comply with all statutes, ordinances, laws, rules, regulations, orders and determinations affecting or issued in connection with each Mississippi Casino by the Mississippi Gaming Commission and any other governmental authority having jurisdiction thereof, as well as with all orders and requirements of the Mississippi Gaming Commission and of any other governmental or regulatory body. Commence recruitment, licensing and hiring of executives, key employees, professionals and other personnel for and on behalf of the Owner necessary to staff each Mississippi Casino excluding the Ancillary Operations and Facilities in a timely fashion to insure the adequacy and proper licensing of such staff upon opening of each Mississippi Casino. Should the period of restoration exceed ninety 90 days, then commencing on the 91st day, Manager shall be entitled to one-half of its Management Fees during the remaining period of restoration based on the average monthly fee paid to the Manager during the three months immediately preceding the casualty. The cost of such security force shall be included in the operating expenses of the gaming facility. Owner reserves the option to purchase or lease the aforementioned gaming and accessory equipment directly from third parties in the event that such purchase or lease from third parties results in a lower cost to Owner. Manager shall provide copies of all such reports and returns to Owner not later than the time such are required to be filed or otherwise submitted to the appropriate governmental authority, and shall furnish the Owner with proof of payment of taxes and fees required to be paid pursuant to federal, state or local laws. Manager shall. Early Termination of Agreement. Owner shall bear all out-of-pocket training costs incurred by the Manager and pay in advance such sums as may be reasonably requested by the Manager for anticipated training costs. There shall be maintained, at the expense of Owner, throughout the term of this Agreement such fidelity and other bonds as may be required from time to time by the appropriate regulatory authorities or for the protection of the respective interests of the Owner and Manager. The third party or security officer shall report directly to the Manager and the Owner. Owner shall indemnify and hold Manager, its officers, directors, agents, employees or affiliates harmless against any losses, damages or expenses, or claims of third parties including legal and other fees in excess of the amount of any insurance proceeds paid to Manager, which is incurred or sustained by Manager as a result of or attributable to any breach of this agreement, negligent or intentional acts, violation of any law, rule, regulation or agreement with any governmental authority by Owner or any person or entity acting on behalf of or who is under the control or supervision of Owner. Each security officer shall be bonded in sufficient amounts commensurate with their enforcement duties and obligations. Excluded Activities. Alan R. Manager shall bear and pay all expenses, including investigative fees under Mississippi Gaming Commission Regulations with respect to the licensure of Manager and any of its employees. A copy of any notice, demand, request or other instrument which may be or is required to be given under this Agreement shall be sent to:. Operational Term Management Fee. {PARAGRAPH}{INSERTKEYS}WHEREAS, Owner desires to employ Manager on an exclusive basis as an independent contractor to assist owner with design and layout of each of the Mississippi Casinos, to provide employee training and necessary pre-opening Casino activities, and, upon opening of each of the Mississippi Casinos, to manage and operate the gaming operations of the Mississippi Casinos on behalf of and for the account and benefit of Owner; and. Assist the Owner in the preparation of Cash Flow Projections and Statements of Pre-Opening Cash requirements for filing in conjunction with applications for required gaming licenses. All policies of hazard insurance shall include loss payment clauses in the form required by any deed of trust, lease or other agreement. Manager Facsimile No. With the prior approval of the Owner and in compliance with all applicable statutes, regulations, and rules, Manager shall select and purchase or lease the necessary gaming equipment principally, slot machines and gaming tables in the name and for the account of Owner utilizing funds made available and provided by Owner. The Operational Term Management Fee shall be paid monthly on the tenth 10th day of each month. Exclusive Manager. Assist Owner in establishing such accounting, auditing, record-keeping and reporting systems and systems of internal control as are required under applicable Mississippi law and the Regulations of the Mississippi Gaming Commission or Mississippi Department of Revenue. Comply with all applicable gaming statutes and regulations of the State of Mississippi and all other federal, state, county and city laws relating to the Mississippi Gaming Operations of the Owner at each Mississippi Casino. The relationship between the Owner and Manager is not intended to be nor shall it be deemed a partnership or joint venture. No Partnership or Joint Venture. All insurance and bond premiums shall be paid from the Casino operating accounts. Owner shall not be responsible for reimbursement of all costs attributable to the Designated Executive Manager, including but not limited to salary, bonuses, relocation costs, fringe benefits, retirement benefits, overseas housing allowances, any expatriate tax grose-up allowance and reimbursement for non-. Any such bonds shall also protect the interests of the holder of any mortgage, or deed of trust, and shall be in such amounts and obtained from such surety companies as owner, lender or mortgage holder shall direct. NOW, THEREFORE, in consideration of the promises and the mutual covenants contained herein, and for other valuable considerations acknowledged by each of the parties to be satisfactory and adequate, the parties hereto covenant and agree as follows:. Manager shall appoint one of its principal executive officers as the Designated Executive Manager to perform and oversee the duties of Manager under this Agreement. Owner shall indemnify, protect and defend Manager from and against any liability therefore. All training costs, including travel and accommodations, salaries for trainers, training equipment, and advertising will be borne and paid by the Owner. Gaming Licensure Expenses. All excess funds held by Manager shall be held in interest bearing accounts with interest accruing to Owner. Miami, Florida Facsimile No. Manager shall make any alterations or repairs so ordered or so required. The operations and activities undertaken by Manager pursuant to this Agreement shall be on behalf of, and for the account and benefit of the Owner of the Mississippi Casinos. Through such executive staff, the Designated Executive Manager shall supervise the hiring, promotion, discharge and work of all other operating and service employees performing such services in or about the Mississippi Casinos. Commencing with the execution of this Agreement and continuing through the commencement and completion of construction and licensing of each Mississippi Casino, Manager shall perform the following services:. Select applicants and organize a training school for local staff needed in each Mississippi Casino, and establish training programs for all local casino staff at a location provided by the owner. Owner agrees to use its best efforts to insure that the conduct of such activities and the prices charged to patrons will be at reasonable and competitive levels so as not to have a material adverse effect on potential Mississippi Casino customer traffic. Owner shall retain ownership over all of the foregoing gaming equipment and related accessory equipment whether or not described above, and will be responsible for payment of any customs, export or other duties. The amounts of such bankroll, working funds and reserves shall be in an amount determined necessary and appropriate by the Owner. For purposes of this Agreement, Mississippi Gaming Operations and management hereunder shall not include operations and management related to food, beverage including licensed liquor and hospitality operations , showroom or. Biloxi, Mississippi A copy of each notice, demand, request or other instrument transmitted in accordance with this Section shall simultaneously be transmitted by facsimile machine to the Owner, the Manager, and above-named counsel at the following telephone numbers:. With respect to each Mississippi Casino and all Mississippi Gaming Operations, Manager and Owner shall jointly prepare pre-opening Casino budgets, preliminary pro-formas for the first year of each Mississippi Casino operation and any other requirements related to Mississippi Casino Operations which must be addressed by Owner. The arbitrators shall set forth the reasons for any decision. During the term of this Agreement, Owner shall provide sufficient funds to bankroll gaming operations and working capital in amounts which the Owner and Manager mutually agree are adequate to assure the uninterrupted and efficient operations of each Mississippi Casino. Manager shall have the authority in all cases to create appropriate job descriptions for and hire, promote, discharge and supervise the work of any such employees. Controlling Law. Assist the Owner with preparation of detailed plans for the design, the layout and construction of all Casino facilities, the selection of all gaming equipment, tokens, chips, cards, currency counters, wrapping machines, safes and other security equipment, the furniture and furnishings to be utilized in all casino facilities, and the uniforms to be worn by Casino employees. Manager shall notify Owner of all such orders, determinations and requirements and any alleged violation of any statute, ordinance, law, rule, regulations, order determination or requirement as soon as Manager receives notice formal or informal thereof. Owner and Manager shall each select and pay the fees and expenses of one arbitrator and those two shall select a third arbitrator. Owner and Manager have negotiated the amount provided for above and agree and acknowledge that it represents fair payment and is not intended to be nor shall it be deemed to be a penalty, or. Except for the Designated Executive Manager, all Mississippi Casino employees employed in or about the Casino shall be employees and paid by the Owner. During the Operational Terms, Owner shall be responsible for providing and maintaining all necessary cash and cash reserves. The Owner shall provide the Manager with copies of all insurance policies as the Manager may from time to time request. With the consent of the Owner, institute any necessary legal action or proceeding to collect charges, rents or other income for, or debts owing to any Mississippi Casino or to oust or dispossess guests, or other persons in possession or to cancel or terminate any lease for the breach thereof or default thereunder, all in accordance with Standard Operating Procedures jointly prepared by Owner and Manager including credit procedures and with the consent of the Owner. All policies insuring against liability, damage to any Mississippi Casino or portions thereof or interruption of business, rent or the like and fidelity and other bonds shall name Owner, Manager, and such other parties as may be required by the provisions of any mortgage, lease, other agreement or regulation as the insured thereunder, as their respective interest may appear. At such time as the Interim Manager shall have been employed by the Owner for the Minimum Employment Period, the Interim Manager shall be terminated and the Manager shall resume its place in this Agreement. The amount of the Costs and Expenses shall be computed in accordance with generally accepted accounting principles applied on a consistent basis. The Designated Executive Manager shall perform his duties on-site at the Mississippi Casinos, and shall relocate to Mississippi. The parties agree that all policies of insurance to be procured by Manager or Owner shall permit the foregoing waiver. The fees of the third arbitrator shall be paid one-half by the Owner and one-half by the Manager.