EXHIBIT 10.27

 

September 18, 2002

 

 

Mr. John T. Redmond

President and CEO

MGM Grand Resorts

3799 Las Vegas Boulevard, South

Las Vegas, NV 80109

 

  Re:   Increase in Scope of Construction of the Borgata

 

Dear Mr. Redmond:

 

This letter agreement (“Letter Agreement”) represents the agreement to an
increase in the scope of the Facility (as detailed below), to be constructed in
accordance with the terms of that certain Operating Agreement (the “Operating
Agreement”) of Marina District Development Holding Co., LLC, a New Jersey
limited liability company (“Holding Co.”) as adopted and amended by that certain
Contribution and Adoption Agreement, effective December 13, 2000, by and among
Holding Co., MAC, CORP., a New Jersey corporation (“MR Sub”) and Boyd Atlantic
City, Inc., a New Jersey corporation (“Boyd Sub”). MR Sub and Boyd Sub are the
Members of Holding Co. Unless otherwise defined herein, all capitalized terms in
this Letter Agreement shall have the same meaning ascribed to such terms in the
Operating Agreement.

 

The parties hereby agree as follows:

 

A.    MR Sub and Boyd Sub agree and acknowledge that the following shall
represent an increase in the scope of the Facility for purposes of Section
3.3(b) (iii) of the Operating Agreement:

 

Ticket In / Ticket Out Slot Ticketing System

A ticket in / ticket out slot ticketing and redemption system that would include
the software and hardware to operate the system, along with all required and
necessary equipment to count and redeem ticket in / ticket out vouchers in the
cashiering and / or countrooms areas. Such costs shall increase the aggregate
shared Project Costs by no more than Seven Million Four Hundred Thousand Dollars
($7,400,000), as described on Exhibit A attached hereto and incorporated herein
by this reference.

 

B.    MR Sub and Boyd Sub shall share equally in the increase, if any, in the
aggregate Project Costs up to but not exceeding the approved increase in scope
as set forth in Section A of this Letter Agreement. As a result of the approved
increase in scope of the Facility, the responsibility of Boyd Sub to make
additional capital contributions due to cost overruns, pursuant to Section
3.3(b) of the Operating Agreement, shall not be triggered until, and only to the
extent that, the aggregate Project Costs exceed One Billion Sixty Two Million
Five Hundred Thousand Dollars ($1,062,500,000), which represents One Billion
Thirty Five Million Dollars ($1,035,000,000) plus the amount set forth Section A
of this Letter Agreement, plus the Increase in Scope of Construction of the
Borgata Agreement Letter dated January 16, 2002 between Boyd Atlantic City, Inc.
and MAC Corp. Correspondingly, Boyd Sub and MR Sub shall

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Mr. John T. Redmond

September 18, 2002

Page Two

 

share equally in all In Balance Contributions, if any, required by the provider
of Construction Financing to the extent such In Balance Contributions relate to
the approved increase in scope as set forth in this Letter Agreement.

 

C.    The Ticket in / Ticket out system and all related equipment and components
shall be considered a part of the Program and the Facility for all purposes
under the Operating Agreement.

 

Please indicate your agreement to the terms of this Letter Agreement by
countersigning below, where indicated.

 

Very truly yours,

BOYD GAMING CORPORATION, a

Nevada corporation

By:

 

/s/    ELLIS LANDAU        

--------------------------------------------------------------------------------

Its:

 

Executive Vice President, Treasurer

and Chief Financial Officer

BOYD ATLANTIC CITY, INC., a

New Jersey corporation

By:

 

/s/    ELLIS LANDAU        

--------------------------------------------------------------------------------

Its:

 

Vice President, Treasurer

and Chief Financial Officer

 

ACCEPTED AND AGREED TO this 1st day of October, 2002:

 

MAC, CORP., a New Jersey corporation

By:

 

/s/    GARY N. JACOBS        

--------------------------------------------------------------------------------

Its:

 

Director & Secretary

MIRAGE RESORTS, INCORPORATED,

a Nevada corporation

By:

 

/s/    GARY N. JACOBS        

--------------------------------------------------------------------------------

Its:

 

Director & Secretary