Common use of Quarterly Payments and Quarterly Contribution Report Clause in Contracts

Quarterly Payments and Quarterly Contribution Report. (1) The Tribe shall remit quarterly to the State Gaming Agency (i) the payments described in section 4.3, for deposit into the Special Distribution Fund and (ii) the payments described in section 5.2, for deposit into the Revenue Sharing Trust Fund or the Tribal Nation Grant Fund. (2) If the Gaming Activities authorized by this Compact commence during a calendar quarter, the first payment shall be due on the thirtieth (30th) day following the end of the first full quarter of the Gaming Activities and shall cover the period from the commencement of the Gaming Activities to the end of the first full calendar quarter. (3) All quarterly payments shall be accompanied by the certification specified in subdivision (b). (b) At the time each quarterly payment is due, regardless of whether any monies are owed, the Tribe shall submit to the State Gaming Agency a certification (the “Quarterly Contribution Report”) prepared by the chief financial officer of the Gaming Operation that specifies the following: (1) The calculation of the maximum number of Gaming Devices operated in the Gaming Facility for each day during the given quarter; (2) If the Tribe is operating one thousand, two hundred and one (1,201) or more Gaming Devices, the Net Win calculation reflecting the quarterly Net Win from the operation of all Gaming Devices in the Facility; (3) The amount due pursuant to section 4.3; (4) The calculation of the amount due pursuant to section 5.2; and (5) The total amount of the quarterly payment paid to the State. (c) If the Tribe is operating one thousand, two hundred and one (1,201) or more Gaming Devices, the following shall also be included in the Quarterly Contribution Report: (1) At any time after the fourth quarter, but in no event later than April 30 of the following calendar year, the Tribe shall provide to the State Gaming Agency an audited annual certification of its Net Win calculation from the operation of Gaming Devices. The audit shall be conducted in accordance with generally accepted auditing standards, as applied to audits for the gaming industry, by an independent certified public accountant (auditor) who is not employed by the Tribe, the Tribal Gaming Agency, the Management Contractor, or the Gaming Operation, is only otherwise retained by any of these entities to conduct regulatory audits or independent audits of the Gaming Operation, and has no financial interest in any of these entities. (2) If the audit shows that the Tribe made an overpayment from its Net Win to the State during the year covered by the audit, the Tribe’s next quarterly payment may be reduced by the amount of the overage. If the audit shows that the Tribe made an underpayment to the State during the year covered by the audit, the Tribe’s next quarterly payment shall be increased by the amount of the underpayment. (3) The State Gaming Agency shall be authorized to confer with the auditor at the conclusion of the audit process and to review all of the auditor’s final work papers and documentation relating to the audit. The Tribal Gaming Agency shall be notified of and provided the opportunity to participate in and attend any such conference or document review. (d) The State Gaming Agency may audit the calculations in subdivision (b) and, if applicable, the Net Win calculations specified in the audit provided pursuant to subdivision (c). The State Gaming Agency shall have access to all records deemed necessary by the State Gaming Agency to verify the calculations in subdivision (b) and, if applicable, the Net Win calculations, including access to the Gaming Device accounting systems and server-based systems and software, and to the data contained therein on a read only basis. If the State Gaming Agency determines that the Net Win is understated or the deductions overstated, it will promptly notify the Tribe and provide a copy of the State Gaming Agency’s audit. The Tribe within twenty (20) days will either accept the difference or provide a reconciliation satisfactory to the State Gaming Agency. If the Tribe accepts the difference or does not provide a reconciliation satisfactory to the State Gaming Agency, the Tribe must immediately pay the amount of the resulting deficiency, plus accrued interest thereon at the rate of one percent (1%) per month or the maximum rate permitted by state law for delinquent payments owed to the State, whichever is less. If the Tribe does not accept the difference but does not provide a reconciliation satisfactory to the State Gaming Agency, the Tribe, once payment is made, may commence dispute resolution under section 13.0. The parties expressly acknowledge that the Quarterly Contribution Reports provided for in subdivision (b) are subject to section 8.4, subdivision (h). (e) Notwithstanding anything to the contrary in section 13.0, any failure of the Tribe to remit the payments referenced in subdivision (a), will entitle the State to immediately seek injunctive relief in federal or state court, at the State’s election, to compel the payments, plus accrued interest thereon at the rate of one percent (1%) per month, or the maximum rate permitted by state law for delinquent payments owed to the State, whichever is less; and further, the Tribe expressly consents to be sued in either court and hereby waives its sovereign immunity and its right to assert sovereign immunity against the State in any such proceeding. Failure to make timely payment shall be deemed a material breach of this Compact. (f) If any portion of the payments under subdivision (a) of this section is overdue after the State Gaming Agency has provided written notice to the Tribe of the overdue amount with an opportunity to cure of at least fifteen (15) business days, and if more than sixty (60) calendar days have passed from the due date, then the Tribe shall cease operating all of its Gaming Devices until full payment is made.

Quarterly Payments and Quarterly Contribution Report. (1) The Tribe shall remit quarterly to the State Gaming Agency (i) the payments described in section 4.3, for deposit into the Special Distribution Fund and (ii) the payments described in section 5.2, for deposit into the Revenue Sharing Trust Fund or the Tribal Nation Grant Fund. (2) If the Gaming Activities authorized by this Compact commence during a calendar quarter, the first payment shall be due on the thirtieth (30th) day following the end of the first full quarter of the Gaming Activities and shall cover the period from the commencement of the Gaming Activities to the end of the first full calendar quarter. (3) All quarterly payments shall be accompanied by the certification specified in subdivision (b). (b) At the time each quarterly payment is due, regardless of whether any monies are owed, the Tribe shall submit to the State Gaming Agency a certification (the “Quarterly Contribution Report”) prepared by the chief financial officer of the Gaming Operation that specifies the following: (1) The calculation of the maximum number of Gaming Devices operated in the Gaming Facility for each day during the given quarter; (2) If the Tribe is operating one thousand, two hundred and one (1,201) or more The Gross Gaming Devices, the Net Win Revenue calculation reflecting the quarterly Net Win Gross Gaming Revenue from the operation of all Gaming Devices in the Facility; (3) The amount due pursuant to section 4.3; (4) The calculation of the amount due pursuant to section 5.2; and (5) The total amount of the quarterly payment paid to the State. (c) If the Tribe is operating one thousand, two hundred and one (1,201) or more Gaming Devices, the The following shall also be included in the Quarterly Contribution Report: (1) At any time after the fourth fiscal quarter, but in no event later than April 30 July 31 of the following calendar year, the Tribe shall provide to the State Gaming Agency an audited annual certification of its Net Win Gross Gaming Revenue calculation from the operation of Gaming Devices. The audit shall be conducted in accordance with generally accepted auditing standards, as applied to audits for the gaming industry, by an independent certified public accountant (auditor) who is not employed by the Tribe, the Tribal Gaming Agency, the Management Contractor, or the Gaming Operation, is only otherwise retained by any of these entities to conduct regulatory audits or independent audits of the Gaming Operation, and has no financial interest in any of these entities. The auditor used by the Tribe for this purpose shall be approved by the State Gaming Agency, or other State Designated Agency, but the State shall not unreasonably withhold its consent. (2) If the audit shows that the Tribe made an overpayment from its Net Win Gross Gaming Revenue to the State during the year covered by the audit, the Tribe’s next quarterly payment may be reduced by the amount of the overage. If the audit shows that the Tribe made an underpayment to the State during the year covered by the audit, the Tribe’s next quarterly payment shall be increased by the amount of the underpayment. (3) The State Gaming Agency shall be authorized to confer with the auditor at the conclusion of the audit process and to review all of the auditor’s final work papers and documentation relating to the audit. The Tribal Gaming Agency shall be notified of and provided the opportunity to participate in and attend any such conference or document review. (d) The State Gaming Agency may audit the calculations in subdivision (b) and, if applicable, the Net Win Gross Gaming Revenue calculations specified in the audit provided pursuant to subdivision (c). The State Gaming Agency shall have access to all records deemed necessary by the State Gaming Agency to verify the calculations in subdivision (b) and, if applicable, the Net Win Gross Gaming Revenue calculations, including access to the Gaming Device accounting systems and server-based systems and software, and to the data contained therein on a read read-only basis. If the State Gaming Agency determines that the Net Win Gross Gaming Revenue is understated or the deductions overstated, it will promptly notify the Tribe and provide a copy of the State Gaming Agency’s audit. The Tribe within twenty (20) days will either accept the difference or provide a reconciliation satisfactory to the State Gaming Agency. If the Tribe accepts the difference or does not provide a reconciliation satisfactory to the State Gaming Agency, the Tribe must immediately pay the amount of the resulting deficiency, plus accrued interest thereon at the rate of one percent (1%) per month or the maximum rate permitted by state law for delinquent payments owed to the State, whichever is less. If the Tribe does not accept the difference but does not provide a reconciliation satisfactory to the State Gaming Agency, the Tribe, once payment is made, may commence dispute resolution under section 13.0. The parties expressly acknowledge that the Quarterly Contribution Reports provided for in subdivision (b) are subject to section 8.4, subdivision (h). (e) Notwithstanding anything to the contrary in section 13.0, any failure of the Tribe to remit the payments referenced in subdivision (a), will entitle the State to immediately seek injunctive relief in federal or state court, at the State’s election, to compel the payments, plus accrued interest thereon at the rate of one percent (1%) per month, or the maximum rate permitted by state law for delinquent payments owed to the State, whichever is less; and further, the Tribe expressly consents to be sued in either court and hereby waives its sovereign immunity and its right to assert sovereign immunity against the State in any such proceeding. Failure to make timely payment shall be deemed a material breach of this Compact. (f) If any portion of the payments under subdivision (a) of this section is overdue after the State Gaming Agency has provided written notice to the Tribe of the overdue amount with an opportunity to cure of at least fifteen (15) business days, and if more than sixty (60) calendar days have passed from the due date, then the Tribe shall cease operating all of its Gaming Devices until full payment is made.