FROM THE REPORT

“Saatkamp’s leadership style, and haste to obtain approval of the deal, hampered debate and in this case resulted in the Board of Trustees ... not learning of critical facts.”

“Counsel bears some responsibility for miscalculating the risk of closing with the 1988 Covenant in place.”

“The Board (of Trustees), although it may have, over time, become overly deferential to President Saatkamp, simply followed the advice of its President and outside counsel.”

“Caesars (which refused to participate in the investigation) appears to have misled Stockton into believing that a release of the 1988 Covenant would be forthcoming, when, according to Trump (Taj Mahal) there was no reason to believe that this was so.”

GIBBONS REPORT CONCLUSIONS

“There can be little question but that, viewed with 20-20 hindsight, the decision to purchase the Showboat from Caesars appears to have been a poor one.”

“Multiple trustees expressed concern that, as effective and even visionary a leader as Saatkamp had been, he discouraged ... differences of opinion among Board members through a variety of techniques ... including, with some frequency, threatening to resign if his positions were not adopted.”

“We considered and investigated whether Saatkamp might have been motivated by some illicit or inappropriate motive for entering into the transaction, or for expediting its closing. We did not find evidence of any such motive.”

Plans for a president’s residence on the 14th floor of Showboat were considered, then abandoned “as the Saatkamps became less enthusiastic about the possibility, at least in part because it would mean living in substantially less space and taking a loss on the sale of their Galloway home.”

“We have concerns with Saatkamp’s refusal to negotiate a resolution of the 1988 Covenant with Trump (Taj Mahal) and of his apparent failure to meaningfully engage with the Board on the subject. (Stockton attorney Paul Fader) believes that with greater authority he could have settled the matter.”

“(Stockton’s law firm) shares responsibility for the Showboat transaction, primarily in that Stevan Sandberg did not recognize and accordingly did not share with Stockton, the real risk of closing without clear title.”

“(Board members) second-guess themselves as to why they did not insist upon meaningful negotiations with Trump during the late winter and early spring, before engaging with (Glenn) Straub, whom they knew to be litigious.”

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