Victorian Consolidated Legislation

Casino (Management Agreement) Act 1993 - SCHEDULE 8

SEVENTH DEED OF VARIATION TO THE MANAGEMENT AGREEMENT MELBOURNE CASINO PROJECT
DEED dated 7 May 2002 BETWEEN THE HONOURABLE JOHN PANDAZOPOULOS MP, the
Minister of the Crown for the time being administering the Casino Control Act
acting for and on behalf of the State of Victoria ('State') AND CROWN LIMITED
ACN 006 973 262 with its registered office at Level 2, 54 Park Street, Sydney,
New South Wales ('Company') RECITALS A. The State and the Company entered into
an agreement dated 20 September 1993 ratified by and scheduled to the
Casino (Management Agreement) Act 1993 ('Management Agreement'). B. The
Management Agreement has been varied by:

   (a)  a deed of variation dated 14 November 1994 ratified by and scheduled
        to the Casino (Management Agreement Amendment) Act 1994 and inserted
        as Schedule 2 to the Casino (Management Agreement) Act 1993;

   (b)  a deed of variation dated 12 October 1995 ratified by and scheduled to
        the Casino (Management Agreement) (Further Amendment) Act 1995 and
        inserted as Schedule 3 to the Casino (Management Agreement) Act 1993;

   (c)  a deed of variation dated 3 June 1996 ratified by the Gaming Acts
        (Amendment) Act 1996 and inserted as Schedule 4 to the
        Casino (Management Agreement) Act 1993;

   (d)  a deed of variation dated 7 November 1996 ratified by the Casino
        (Management Agreement) Amendment Act 1996 and inserted as Schedule 5
        to the Casino (Management Agreement) Act 1993;



   (e)  a deed of variation dated 1 October 1998 ratified by the Gaming Acts
        (Further Amendment) Act 1998 and inserted as Schedule 6 to the
        Casino (Management Agreement) Act 1993; and

   (f)  a deed of variation dated 3 April 2000 ratified by the National
        Taxation Reform (Further Consequential Provisions) Act 2000 and
        inserted as Schedule 7 to the Casino (Management Agreement) Act 1993.
        C. The parties have agreed to further vary the Management Agreement as
        provided in this Deed of Variation. AGREEMENT 1. Definitions
Unless the context otherwise requires or the contrary intention appears, terms
defined in the Casino Control Act 1991 or the Management Agreement have the
same meaning when used in this Deed. 2. Ratification and operation of
provisions 2.1. A Minister of the State must introduce and sponsor a Bill in
the Parliament of Victoria to ratify this Deed as soon as reasonably
practicable after its execution. 2.2. This Deed shall come into operation once
the Bill referred to in clause 2.1 has come into operation as an Act. 3.
Variation of Management Agreement
The State and the Company agree to vary the Management Agreement so that:-

   (a)  the following definitions in clause 2 shall be deleted; 'Melbourne
        Casino Complex (excluding the Lyric Theatre and the Southern Tower of
        the Hotel)' 'Lyric Theatre'

   (b)  the definition of 'Completion' in clause 2 shall be varied by:

   (i)  deleting the words 'the Lyric Theatre and' after the word 'excluding';
        and

   (ii) deleting the words 'the Lyric Theatre' after the words 'the Training
        and Human Resource Centre,';

   (c)  the definition of 'Completion Date' in clause 2 shall be varied by
        deleting the words 'the Lyric Theatre and' in paragraphs (d) and (e);

   (d)  the definition of 'Completion Standards' in clause 2 shall be varied
        by:

   (i)  deleting the words 'the Lyric Theatre and' after the word 'excluding';
        and

   (ii) deleting the words 'the Lyric Theatre' after the words 'the Training
        and Human Resource Centre,';

   (e)  the definition of 'Melbourne Casino Complex' in clause 2 shall be
        varied by inserting the words 'and such other facilities as are
        nominated by the Company, with the approval of the Minister, as
        forming part of the Melbourne Casino Complex' after the words
        'Ancillary Facilities';

   (f)  the definition of 'Site' in clause 2 shall be varied by deleting the
        words 'available for the construction of any part of the Melbourne
        Casino Complex' and inserting the words 'part of the Site';

   (g)  clause 10.1 shall be varied by deleting the words 'the Lyric Theatre
        and' after:

   (i)  the word 'excluding' in paragraph (c); and

   (ii) the word 'Complete' in paragraph (d);

   (h)  clause 10.4 shall be varied:

   (i)  by deleting the words 'the Lyric Theatre and' after the words
        'Training and Human Resource Centre,' where first appearing; and

   (ii) by deleting the comma and words ', the Lyric Theatre' after the words
        'Training and Human Resource Centre, where secondly appearing;

   (i)  clause 15.1 shall be varied by:

   (i)  deleting the words 'Lyric Theatre and' after the words 'excluding
        the'; and

   (ii) deleting the words 'the Lyric Theatre' before the words 'the Southern
        Tower of the Hotel';

   (j)  clause 15.11 shall be deleted;

   (k)  clause 16.1 shall be varied by deleting the words 'the Lyric Theatre
        and' after the word 'excluding';

   (l)  clause 16.3 shall be varied by deleting the words 'Lyric Theatre and'
        after the word 'excluding';

   (m)  clause 17.1 shall be varied by:

   (i)  deleting the words 'the Lyric Theatre and' after the word 'excluding'
        in paragraph (c); and

   (ii) deleting the words 'the Lyric Theatre and' in paragraph (d);

   (n)  clause 17.2 shall be varied by:

   (i)  deleting the words 'the Lyric Theatre and' wherever appearing in
        paragraphs (b) and (c);

   (ii) deleting the words 'both the Lyric Theatre and' wherever appearing in
        paragraph (d); and

   (iii) substituting the word 'is' for the word 'are' in paragraph (d)
        wherever appearing; and

   (o)  clause 17.3 shall be varied by deleting the words 'the Lyric Theatre
        and' in paragraph (a) wherever appearing. 4. Payment to the State 4.1.
        The Company agrees to pay to the State $18 million ('Payment') by 6
        instalments of $3 Million each payable within 30 days of invoice from
        the State for each instalment the first of which is to be issued on
        the date of ratification of this Deed in accordance with clause 2 and
        the further invoices to be issued on each anniversary of this Deed in
        the 5 years following. 4.2. The Payment will be paid by the State into
        a Trust Account established under Part 4 of the
        Financial Management Act 1994 in order that the principal and interest
        shall be applied by the State for the construction of high profile
        cultural facilities in the Southbank Arts Precinct Area. 4.3. If the
        Company fails to make the Payment on the due date, without prejudice
        to any other right or remedy arising because of that failure, the
        Company must pay to the State interest (calculated daily) on the
        amount in default (including accrued interest) at the Default Rate for
        the period from the due date until payment is made (including all
        interest due under this clause). 4.4. This clause 4 and clauses 5 and
        6 are not conditions of the Casino Licence and their performance is
        not to be taken into account in the regulation of the Company under
        the Casino Control Act 1991 or the
        Casino (Management Agreement) Act 1993. Any breach of these clauses
        will not be taken to be a breach of the Management Agreement and in
        particular for the purposes of clause 25.2 of the Management
        Agreement. 5. Alternative Project 5.1. The Company agrees to construct
        or procure an alternative project the nature and the timing of which
        is to be determined at the sole discretion of the Company. The
        Company, at its cost, shall be solely responsible for obtaining all
        permits and approvals necessary for such alternative project. 5.2. The
        estimated cost of the alternative project shall be not less than the
        estimated cost of constructing the Lyric Theatre of $42 million, the
        amount determined on 9 March 2001 by a quantity surveyor appointed by
        the State. 5.3 The Company shall submit drawings, plans,
        specifications and details relating to the alternative project to the
        State so that the State may have the estimated cost thereof verified
        by a quantity surveyor to be appointed by the State, acting
        reasonably. If the estimated cost so verified is less than $42
        million, the Company agrees to construct or procure a further stage or
        stages of the alternative project (the nature and the timing of which
        is to be determined at the sole discretion of the Company) to make up
        the shortfall in estimated cost. Clauses 5.1 and 6, and the
        verification process in this clause apply to any such further stage.
        6. Location of the Alternative Project 6.1. The Company may give
        notice to the State as to whether the alternative project will:

   (a)  form part of the Melbourne Casino Complex; or

   (b)  not form part of the Melbourne Casino Complex, but be located on land
        within the area bounded by Queensbridge Street, City Road, Clarendon
        Street and Whiteman Street and that such land:

   (i)  is designated by the Company as part of the Site; or

   (ii) will not be part of the Site. 6.2. (a) If clause 6.1(a) applies, the
        parties must, within 6 months after the date of the notice under
        clause 6.1, enter into a further Deed of Variation of the Management
        Agreement that will provide for the alternative project to be part of
        the Melbourne Casino Complex and subject to the Company's discretion
        under clause 5.1 and to all the requirements mutatis mutandis of the
        Management Agreement and the Casino (Management Agreement) Act 1993.

   (b)  If clause 6.1(b)(i) applies the Minister may approve or reject the
        Company's designation of that land as part of the Site. If the
        Minister approves that designation, the Minister must cause the
        Melbourne Casino Area to be increased, under section 128C(1)(b) of the
        Casino Control Act, so that it is the same area as the Site, within 6
        months after the date of the notice under clause 6.1. The alternative
        project will not constitute a change to the Drawings. 7. Force Majeure
        Event
None of the negotiation, preparation and execution of this Deed, its
ratification under clause 2 or any of the circumstances relating to or giving
rise to the creation of this Deed has or will cause or create any Government
Action, Force Majeure Event or breach of obligation under any Transaction
Document and the Company and the State so acknowledge. 8. Confirmation of
other terms
The parties acknowledge and confirm that except as varied by this Deed the
terms and conditions of the Management Agreement remain in full force and
effect. 9. Entire Agreement This Deed is the entire agreement between the
parties concerning the subject matter and replaces all previous
representations, communications and agreements on the subject matter. 10.
General provisions
Clauses 33 and 35 to 40 (inclusive) of the Management Agreement apply to this
Deed as if expressly included in this Deed. EXECUTED as a Deed. SIGNED SEALED
AND DELIVERED by THE HONOURABLE JOHN PANDAZOPOULOS MP Minister for Gaming for
and on behalf of the State of Victoria in the presence of: ü ï ý ï þ JOHN
PANDAZOPOULOS

   (signature)
        ...................................................................
        witness

MARCELLE BÂGU Name of witness THE COMMON SEAL of CROWN LIMITED is affixed in
accordance with its articles of association in the presence of: ü ý ï þ

L.S. Secretary Name STEPHEN WRIGHT Director Name ASHOK JACOB
Witness	Name                                    .
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