Common use of Initial Period of Exercisability Clause in Contracts

Initial Period of Exercisability. The Option will become exercisable on the Grant Date as to 100,000 shares. The remaining 200,000 shares will become exercisable (a) as to 8,333 shares on the first day of each of the next 24 Months (with all remaining shares vesting on the first day of the 24th month) and (b) as to 50 percent of any shares not then exercisable, on the date the State of Missouri approves a law permitting construction and operation of a casino by Company at Rockaway Beach, Missouri or on the date the State of Minnesota approves construction and operation of a harness-racing track by Company in the Twin Cities Metropolitan Area of Minnesota. The provisions of (b) are cumulative such that if both the Rockaway Beach casino and the harness-racing track are approved, the Option will be exercisable as to all Option shares. Optionee’s right to exercise this Option is cumulative. Except as provided in Section 3.2(b), this Option will become void and expire as to all unexercised Option Shares at, 5:00 p.m. (Minnesota time) on July 21, 2009 (the “Time of Termination”).