Common use of Amendment to Sublease Clause in Contracts

Amendment to Sublease. Section 13 of the Sublease is amended (x) to amend the third sentence thereof to read as follows: “Without limiting the foregoing, Sublesee shall maintain with respect to the Subleased Property a reserve (the “Sublease FF&E Reserve”) for capital and FF&E expenditures in an amount equal to (a) 2.5% of (i) gross revenues derived from operations of the Subleased Property (including, without limitation, from operations of the hotel and casino components of the Subleased Property) for the period in question minus (ii) the amount attributable to “comps” for the Subleased Property during such period (the gross revenues net of such comps being referred to for purposes of this Section 13 as the “net revenues”), less (b) any amounts actually expended during such period by Sublessee or Sublessor on account of FF&E (other than from the Sublease FF&E Reserve or FF&E Reserve under the Master Lease, it being understood that amounts expended on account of FF&E from the Sublease FF&E Reserve or the FF&E Reserve under the Master Lease shall not be included in any deductions from the Sublease FF&E Reserve deposit requirements) (the “Required Sublease FF&E Deposit”); provided that if the amount deducted for a period under clause (b) of this sentence exceeds the amount that would otherwise be payable into the Sublease FF&E Reserve under clause (a) of this sentence for such period, Sublessee may reduce the Required Sublease FF&E Deposit for the next period by the amount of such excess.”; and (y) by adding the following language after the third sentence, “On or before each Sublease Rent Payment Date, Sublessee shall fund or cause to be funded the Sublease FF&E Reserve based on Sublessee’s good faith estimate of the Required Sublease FF&E Deposit for the previous month (i.e., Sublessee’s good faith estimate of 2.5% of the net revenues of the Subleased Property for the previous month minus the amounts actually expended by Sublessee or Sublessor on account of FF&E during such month); and concurrently with such funding Sublessee shall provide to Sublessor a written notice of the amount of such funding. Within forty-five days of the end of each Fiscal Quarter, Sublessee shall furnish Sublessor with information setting forth the actual net revenues and actual Required Sublease FF&E Deposit of the Subleased Property for such Fiscal Quarter, including reasonable detail regarding the gross revenues of the Subleased Property and the comps and actual FF&E expenditures deducted to arrive at the net revenues and Required Sublease FF&E Deposit such that Sublessor shall have sufficient information relating to the Subleased Property to enable Sublessor to deliver the FF&E Certificate under Section 11.1 of the Master Lease (the “FF&E Reserve Certificate”). With respect to the Subleased Property, if the amounts deposited into the Sublease FF&E Reserve for a Fiscal Quarter exceeds the actual Required Sublease FF&E Deposit for the Subleased Property for such Fiscal Quarter (as set forth in the applicable FF&E Reserve Certificate), the excess amount shall be applied against the amount to be funded in the Sublease FF&E Reserve for the following month. With respect to the Subleased Property, if the amounts deposited into the Sublease FF&E Reserve for a Fiscal Quarter are less than the actual Required Sublease FF&E Deposit for the Subleased Property for such Fiscal Quarter (as set forth in the applicable FF&E Reserve Certificate), Sublessee shall fund, or cause to be funded, the difference into the Sublease FF&E Reserve, within five (5) Business Days of Sublessor delivering the FF&E Reserve Certificate.”