EXHIBIT 10.1

 

EXECUTION COPY

 

May 28, 2009

 

To the Consenting Lenders under the Lock-Up Agreement referred to below:

 

Reference is made to the letter agreement, dated as of March 9, 2009 (as
amended, supplemented or otherwise modified and in effect as of the date hereof,
the “Lock-Up Agreement”), among Herbst Gaming, Inc. (the “Company”), the
Guarantor Debtors (as defined therein) and the Consenting Parties (as defined
therein).  Capitalized terms used but not otherwise defined herein shall have
the meanings ascribed to such terms in the Lock-Up Agreement.

 

By this instrument (this “Amendment and Waiver”), each of the Debtors and the
Consenting Lenders, intending to be legally bound, hereby agrees as follows:

 

1.                                       The termination event described in
Section 12(a)(ix) of the Lock-Up Agreement is hereby waived.

 

2.                                       The consent of the THI Parties as a
condition to the effectiveness of this Amendment and Waiver and to the continued
binding effect of the Lock-Up Agreement with respect to the Debtors and
Consenting Lenders is hereby waived.

 

3.                                       A new termination event is hereby added
as Section 12(a)(xxiv) of the Lock-Up Agreement as follows:

 

“(xxiv)  The Plan and the Disclosure Statement, in each case in form and
substance acceptable to Required Consenting Lenders, shall not have been filed
with the Bankruptcy Court on or before June 15, 2009.”

 

provided that the waiver of Required Consenting Lenders, but not the Debtors,
shall be required with respect to any automatic termination that occurs pursuant
to such new paragraph (xxiv).

 

4.                                       In light of the termination of the
Lock-Up Agreement with respect to the THI Parties, the Restructuring, the Term
Sheet, the Plan and the Plan Documents shall all be modified to reflect
treatment of all claims, rights and obligations of the THI Parties, including
the treatment of the Related Party Agreements, in a manner acceptable to the
Debtors and Required Consenting Lenders.

 

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5.                                       Any Consenting Lender that does not
find acceptable the tax or capital structure proposed in the Plan and Disclosure
Statement filed with the Bankruptcy Court can elect to terminate the Lock-Up
Agreement solely with respect to such Consenting Lender upon notice to the
Company within 2 Business Days of such filing; provided that if any such
election shall result in all other remaining Consenting Lenders holding less
than a majority in dollar amount of all outstanding Claims under the Senior
Credit Facility, then the Lock-Up Agreement shall automatically terminate
notwithstanding any waiver by the Debtors.

 

References in the Lock-Up Agreement (including references to the Lock-Up
Agreement as amended hereby) to “this Agreement” (and indirect references such
as “hereunder”, “hereby”, “herein” and “hereof” or words of like import) shall
be deemed to be references to the Lock-Up Agreement as amended hereby.  This
Amendment and Waiver shall be limited as written and nothing herein shall be
deemed to constitute a waiver of any other term, provision or condition of the
Lock-Up Agreement in any other instance than as set forth herein or prejudice
any right or remedy that any Consenting Lender may have or may in the future
have under the Lock-Up Agreement.  Except as herein provided, the Lock-Up
Agreement shall remain unchanged and in full force and effect with respect to
the Debtors and the Consenting Lenders and is hereby in all respects ratified
and confirmed.  This Amendment and Waiver may be executed by the Debtors in any
number of counterparts and by different Debtors in separate counterparts and by
facsimile, with the same effect as if all Debtors had signed the same document,
and may be ratified by the Consenting Lenders through electronic transmission. 
This Amendment and Waiver shall be governed by and construed in accordance with
the laws of the State of New York.

 

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Very truly yours,

 

 

 

HERBST GAMING, INC.

 

 

 

 

 

By:

/s/ TROY D. HERBST

 

 

Name:

TROY D. HERBST

 

 

Title:

CEO

 

 

 

GUARANTOR DEBTORS:

 

 

 

FLAMINGO PARADISE GAMING, LLC

 

 

 

 

 

By:

/s/ TROY D. HERBST

 

 

Name:

TROY D. HERBST

 

 

Title:

MANAGING MEMBER

 

 

 

MARKET GAMING, INC.

 

 

 

 

 

By:

/s/ TROY D. HERBST

 

 

Name:

TROY D. HERBST

 

 

Title:

SECRETARY/TREASURER

 

 

 

CARDIVAN COMPANY

 

 

 

 

 

By:

/s/ TROY D. HERBST

 

 

Name:

TROY D. HERBST

 

 

Title:

SECRETARY/TREASURER

 

 

 

CORRAL COIN, INC.

 

 

 

 

 

By:

/s/ TROY D. HERBST

 

 

Name:

TROY D. HERBST

 

 

Title:

SECRETARY/TREASURER

 

 

 

CORRAL COUNTRY COIN, INC.

 

 

 

 

 

By:

/s/ TROY D. HERBST

 

 

Name:

TROY D. HERBST

 

 

Title:

SECRETARY/TREASURER

 

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E-T-T ENTERPRISES, L.L.C.

 

 

 

 

 

By:

/s/ TROY D. HERBST

 

 

Name:

TROY D. HERBST

 

 

Title:

MANAGING MEMBER

 

 

 

E-T-T, INC.

 

 

 

 

 

By:

/s/ TROY D. HERBST

 

 

Name:

TROY D. HERBST

 

 

Title:

SECRETARY/TREASURER

 

 

 

HGI — ST. JO, INC.

 

 

 

 

 

By:

/s/ TROY D. HERBST

 

 

Name:

TROY D. HERBST

 

 

Title:

SECRETARY/TREASURER

 

 

 

HGI — LAKESIDE, INC.

 

 

 

 

 

By:

/s/ TROY D. HERBST

 

 

Name:

TROY D. HERBST

 

 

Title:

SECRETARY/TREASURER

 

 

 

HGI — MARK TWAIN, INC.

 

 

 

 

 

By:

/s/ TROY D. HERBST

 

 

Name:

TROY D. HERBST

 

 

Title:

SECRETARY/TREASURER

 

 

 

THE SANDS REGENT

 

 

 

 

 

By:

/s/ TROY D. HERBST

 

 

Name:

TROY D. HERBST

 

 

Title:

SECRETARY/TREASURER

 

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ZANTE INC.

 

 

 

 

 

By:

/s/ TROY D. HERBST

 

 

Name:

TROY D. HERBST

 

 

Title:

SECRETARY/TREASURER

 

 

 

LAST CHANCE, INC.

 

 

 

 

 

By:

/s/ TROY D. HERBST

 

 

Name:

TROY D. HERBST

 

 

Title:

SECRETARY/TREASURER

 

 

 

CALIFORNIA PROSPECTORS, LTD.

 

 

 

 

 

By:

/s/ TROY D. HERBST

 

 

Name:

TROY D. HERBST

 

 

Title:

MANAGING MEMBER

 

 

 

PLANTATION INVESTMENTS, INC.

 

 

 

 

 

By:

/s/ TROY D. HERBST

 

 

Name:

TROY D. HERBST

 

 

Title:

SECRETARY/TREASURER

 

 

 

DAYTON GAMING, INC.

 

 

 

 

 

By:

/s/ TROY D. HERBST

 

 

Name:

TROY D. HERBST

 

 

Title:

SECRETARY/TREASURER

 

 

 

THE PRIMADONNA COMPANY, LLC

 

 

 

 

 

By:

/s/ TROY D. HERBST

 

 

Name:

TROY D. HERBST

 

 

Title:

MANAGING MEMBER

 

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Accepted and agreed to by the Consenting Lenders named below:

 

[electronic transmissions, constituting the consent of Required Consenting
Lenders, on file with the Senior Credit Facility Agent]

 

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