Outlines of Agreement with Clarion Below are the common points in our Agreement with Clarion: 1. Clarion loans NIGA, $1.5m per year starting in FY 2021. Clarion has offered NIGA up to $4.5 million over 3 years, if needed. While we are hopeful NIGA will only need only one (1) loan of $1.5 million, we are building in a loan scenario where the NIGA Tradeshow revenue could take a year or two to recover to pre-pandemic levels. 2. The loan(s) will be subject to 3% annual interest and NIGA would be required to pay it back to Clarion over a 25 year loan timeframe. With a loan calculated on a 25 year term, NIGA would be eligible to pay off the loan ASAP, thereby reducing interest and the financial commitment from Clarion. 3. Profits from future events will be split according to an agreed upon percentage and will be paid within 90 days of each annual event. 4. NIGA will continue to own 100% of their event for the entire period of the Agreement. All Tradeshow planning and budgeting will need to be jointly agreed to each year. 5. All live event revenues created by Clarion in North America must be included in this partnership to ensure alignment, as does all NIGA event revenue (except NIGA’s Commissioner Trainings). This includes i-gaming revenue which inevitably will be an opportunity in the future for both organizations. Any digital revenue, excluding digital revenue associated with the NIGA tradeshow, is excluded from the partnership. 6. Clarion agrees to assist NIGA in our core mission, defending Indian Gaming. Clarion agrees to rely on NIGA’s expertise in the industry and promote Indian Gaming at other Clarion events such as ICE, and their North American Sports Betting Show. Conclusion Due to the aggressive savings from 2020, NIGA ended the year with a little over $1.1 million in cash on hand. With the strong collection of NIGA membership dues in 2021 and the PPP money, NIGA has enough cash to cover basic operations for the remainder of 2021. However, the up-front costs of the July Tradeshow in Las Vegas, and the uncertainty about future FY 2021 revenue collection has created a strain on NIGA’s future operations into FY 2022.
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