TO BE DONE AS OF THE RESTATEMENT DATE TO KEEP UNIMPAIRED ITS
RIGHTS THEREUNDER.
THE INCREASE OF THE CREDIT FACILITY TO EIGHTY-FIVE MILLION
DOLLARS ($85,000,000.00) AND ISSUANCE OF THE PIDI LICENSE LETTER OF CREDIT IS
PERMITTED UNDER THE TERMS OF THE SENIOR UNSECURED INDENTURE.
ARTICLE V
GENERAL COVENANTS OF BORROWERS
To induce the Banks to enter into this Credit Agreement, Borrowers covenant to
Banks as follows:
SECTION 5.01.
FF&E.
THE BORROWER CONSOLIDATION SHALL FURNISH, FIXTURE
AND EQUIP THE HOTEL/CASINO FACILITIES WITH FF&E IT REASONABLY DEEMS APPROPRIATE
FOR THE OPERATION OF THE HOTEL/CASINO FACILITIES.
ALL FF&E THAT IS PURCHASED
AND INSTALLED IN THE HOTEL/CASINO FACILITIES SHALL BE PURCHASED FREE AND CLEAR
OF ANY LIENS, ENCUMBRANCES OR CLAIMS, OTHER THAN PERMITTED ENCUMBRANCES.
SECTION 5.02.
PERMITS; LICENSES AND LEGAL REQUIREMENTS.
BORROWERS
SHALL COMPLY IN ALL MATERIAL RESPECTS WITH AND KEEP IN FULL FORCE AND EFFECT, AS
AND WHEN REQUIRED, ALL GAMING PERMITS AND ALL MATERIAL PERMITS, LICENSES AND
APPROVALS OBTAINED FROM ANY GOVERNMENTAL AUTHORITIES WHICH ARE REQUIRED FOR THE
OPERATION AND USE OF THE MPI HOTEL/CASINO FACILITIES, SGLVI HOTEL/CASINO
FACILITY AND SDI FACILITY.
BORROWERS SHALL COMPLY IN ALL MATERIAL RESPECTS WITH
ALL APPLICABLE MATERIAL EXISTING AND FUTURE LAWS, RULES, REGULATIONS, ORDERS,
ORDINANCES AND REQUIREMENTS OF ALL GOVERNMENTAL AUTHORITIES, AND WITH ALL
RECORDED RESTRICTIONS AFFECTING THE COLLATERAL PROPERTIES.
SECTION 5.03.
PROTECTION AGAINST LIEN CLAIMS.
BORROWERS SHALL PROMPTLY
PAY AND DISCHARGE OR CAUSE TO BE PAID AND DISCHARGED ALL CLAIMS AND LIENS FOR
LABOR DONE AND MATERIALS AND SERVICES SUPPLIED AND FURNISHED IN CONNECTION WITH
THE HOTEL/CASINO FACILITIES IN ACCORDANCE WITH THIS SECTION 5.03, EXCEPT SUCH
CLAIMS AND LIENS, IF ANY, AS ARE BEING CONTESTED IN GOOD FAITH BY BORROWERS BY
APPROPRIATE PROCEEDINGS AND FOR WHICH BORROWERS HAVE MAINTAINED ADEQUATE
RESERVES FOR THE PAYMENT THEREOF IN ACCORDANCE WITH GAAP.
IF ANY MECHANIC'S
LIEN OR MATERIALMAN'S LIEN
80
SHALL BE RECORDED, FILED OR SUFFERED TO EXIST AGAINST THE COLLATERAL PROPERTIES
OR ANY OF THEM OR ANY INTEREST THEREIN BY REASON OF WORK, LABOR, SERVICES OR
MATERIALS SUPPLIED, FURNISHED OR CLAIMED TO HAVE BEEN SUPPLIED AND FURNISHED IN
CONNECTION WITH THE HOTEL/CASINO FACILITIES, UPON BORROWERS RECEIPT OF WRITTEN
NOTICE FROM AGENT BANK DEMANDING THE RELEASE AND DISCHARGE OF SUCH LIEN, SAID
LIEN OR CLAIM SHALL BE PAID, RELEASED AND DISCHARGED OF RECORD WITHIN NINETY
(90) DAYS FOLLOWING ITS RECEIPT OF SUCH NOTICE, OR, IN LIEU OF SUCH PAYMENT
BORROWERS MAY (I) WITH RESPECT TO THE SGLVI HOTEL/CASINO FACILITY CAUSE SAID
MECHANIC'S LIEN OR MATERIALMAN'S LIEN TO BE RELEASED OF RECORD PURSUANT TO THE
PROVISIONS SET FORTH IN THE NEVADA REVISED STATUTES 108.2413, ET. SEQ., WITHIN
ONE HUNDRED TWENTY (120) DAYS OF THE DATE OF SUCH NOTICE; AND (II) TO THE EXTENT
THAT ANY SUCH MECHANIC'S LIEN OR MATERIALMAN'S LIEN SHALL BE RECORDED, FILED OR
SUFFERED TO EXIST IN THE STATE OF WEST VIRGINIA, BORROWERS SHALL CAUSE SAID
MECHANIC'S LIEN TO BE RELEASED OF RECORD PURSUANT TO A BONDING OR SIMILAR
STATUTORY PROCEDURE UNDER THE LAWS OF THE STATE OF WEST VIRGINIA, WHICH
STATUTORY PROCEDURES SHALL BE