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Non-Tech : Sungold Gaming International (SGGNF) -- Ignore unavailable to you. Want to Upgrade?

To: L. D. who wrote (4197)	9/1/1999 1:16:00 PM
From: John Lawrence	Read Replies (2) \| Respond to of 5164

OT. FYI. Info. on Pokagan/CSNR settlement. The info. below describes a settlement announced yesterday in a case that is at least in the same general territory as the Sungold/GLT case. I'm not suggesting that this is the sort of settlement we will see; I'm just indicating that settlements are being achieved in this area, and this is one example. You'll note that CSNR is looking at an aggregate buy-out of their interests for $16.1 million. On the face of it, the Pokagan/CSNR settlement appears to have some similarities to our situation, but I imagine there are many differences. In any case, if there are similarities that fit, I expect that Sungold will require a much higher buy-out. I also believe that following yesterday's PR from Sungold re. the GLT, that the Tribe's motivation and ability to reach a settlement have increased. The following items are excerpted from yesterday's news releases from CSNR and LACO. biz.yahoo.com Tuesday August 31, 4:53 pm Eastern Time Company Press Release Lakes Gaming Announces Ratification of Management Agreements by Pokagon Band of Potawatomi Indians MINNEAPOLIS--(BUSINESS WIRE)--Aug. 31, 1999--Lakes Gaming, Inc. (Nasdaq ''LACO'') announced today that the Pokagon Band of Potawatomi Indians (''the Band'') has ratified the development and management agreements with Lakes Gaming, Inc. for the development and management of a proposed gaming resort facility to be owned by the Band in the State of Michigan. The ratification by the Band finalizes the selection process and completes the preparation of the development, construction and management agreements. Various regulatory approvals are needed prior to the opening of the casino including approval of the agreements by the Chairman of the National Indian Gaming Commission and the acceptance of land into trust status by the Secretary of the Interior. Lakes also announced that it has reached a financial resolution with Casino Resource Corporation regarding a proposed joint venture, which was to have been formed to respond to the Band's request for proposal. Under the final agreement with CRC, Lakes will pay to CRC an agreed upon fixed amount in each of the five years of the management agreement contingent only upon the proposed casino being open and managed by Lakes Gaming, Inc. CRC will have no part of the development, construction, management of the proposed casino or be involved in any manner with the Pokagon Band or the project. The ratification by the Pokagon Band completes one more step in the process to open a casino for the Band in Michigan. ......... OCEAN SPRINGS, Miss., Aug. 31 /PRNewswire/ -- Casino Resource Corporation (OTC Bulletin Board: CSNR), a Minnesota corporation headquartered in Ocean Springs, Miss., announced today that its buy out agreement with Lakes Gaming (Nasdaq: LACO) has become effective with the ratification by the Pokagon Band of Potawatomi Indians of their Management and Development Agreement. The terms of the buy out of CRC's interests by Lakes Gaming calls for the payment of an aggregate maximum sum of $16.1 million, which includes a $2 million cash down payment. The balance of $14.1 million is payable as certain events unfold relative to the location of the Tribe's casino, the actual fact that the casino does open, that Lakes Gaming is the manager when it opens, and Lakes Gaming continues to manage the casino during the five year term of the agreement, other than a buy out by the Tribe of the remainder of Lakes Gaming management term. The agreement also calls for CRC to pay back the $2 million if after five years there is no casino open. Further, a portion of the payment, $2.5 million, is due only if the Tribe builds a casino in Indiana and Lakes Gaming is the manager. According to CEO, Jack Pilger, "The buy out immediately enhances our cash position and the income stream we expect to receive when the casino opens should enhance our earnings picture over the ensuing five year term of the contract. The Company will have no associated costs or involvement with the development or management of the casino."