Document:

Exhibit 10.2

FIRST AMENDMENT TO
REVOLVING NOTE

 

This First Amendment to
Revolving Note (the “First Amendment”) is made as of this 29th day of March
2005 by and between Citizens Bank of Massachusetts (the “Bank”) having a
principal office located at 28 State Street, Boston, Massachusetts 02108 and
Charles River Associates Incorporated (the “Borrower”), a Massachusetts
corporation having an office at the John Hancock Tower, 200 Clarendon Street,
T-33, Boston, Massachusetts 02116-5092 to that certain Revolving Note dated
January 14, 2004 executed by the Borrower in favor of the Bank (the “Note”).  Any capitalized terms not otherwise defined
herein shall have the same meanings designated in the Note.

 

W I T N E S S E T
H:

 

WHEREAS, the Borrower did on January 14, 2004 execute,
seal and deliver to the Bank the Note; and

 

WHEREAS, the Borrower has requested that the Bank
extend the maturity date of the Note;

 

NOW, THEREFORE, in consideration of the mutual
covenants contained herein and other good and valuable consideration, receipt
of whereof is hereby acknowledged, it is hereby agreed by and between the
Borrower and the Bank as follows:

 

1.                                       The Note is hereby amended by replacing
the maturity date of January 14, 2006 with April 30, 2007.

 

2.                                       The Note, as amended hereby, shall remain
in full force and effect and all terms hereof are hereby ratified and confirmed
by the Borrower.  Except for specifically
provided herein, all other terms and conditions of the Note shall remain in
full force and effect.

 

3.                                       The Borrower by its execution of this
First Amendment in the space provided below, represents, warrants and agrees
that the Borrower has no claims, defenses, counterclaims or offsets against the
Bank in connection with the Note or any of the other documents executed in
connection therewith and, to the extent that any such claim, defense,
counterclaim or offset may exist, the Borrower by its execution of this First
Amendment in the space provided below, hereby affirmatively WAIVES and RELEASES
the Bank from same.

 

4.                                       This First Amendment shall take effect as
a sealed instrument under the laws of the Commonwealth of Massachusetts as of
the date first above written.

 

1

 

 

5.                                       Any and all references to the Note and
any instrument previously and now hereafter executed by the Borrower shall be
deemed to refer to the Note as amended by this First Amendment and any future
amendments hereafter entered into between the Borrower and the Bank.

 

IN WITNESS WHEREOF, the parties hereto have executed
this Amendment as of the date and year first above written as a sealed
instrument.

 

 

	
  WITNESS:

  	
   

  	
  Charles River Associates Incorporated

  
	
   

  	
   

  	
   

  
	
   /s/ James
  Spelfogel

  	
   

  	
  By:

  	
  /s/ J. Phillip Cooper

  
	
   

  	
   

  	
   

  	
  Executive Vice President, Chief

  
	
   

  	
   

  	
   

  	
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CITIZENS BANK OF MASSACHUSSETTS

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ Michael McAuliffe

  
	
   

  	
   

  	
   

  	
  Senior Vice President

  

 

 

 

 

2Exhibit 10.1

 

HADDOCK
INVESTMENTS

210 West Sixth Street
Suite 1206 Fort Worth, TX 76102 817.885.8390 FAX 817.885.8391

 

March 29, 2005

 

Mr. Jeff Johnson, President

Cano Petroleum, Inc.

309 W. 7th Street

Suite 1600 (16th Floor)

Fort Worth, TX 76102

 

Mr. Kenneth Carlile

2615 East End Blvd. South

Marshall, TX 75672

 

Re: Sabine
Royalty Trust (“SBR”)

 

Dear Gentlemen:

 

As you arc
both aware, Haddock Enterprises, LLC (“Haddock Enterprises”) is in the process
of pursuing the possibility of an entity change for SBR of which the
undersigned is a Unit Holder (the “Proposed Transaction”), in order to
transform SBR into a new company (“Newco”). Cano Petroleum, Inc. (“Cano”) and
Kenneth Carlile (“Carlile”) desire to join Haddock Enterprises in pursuing the
Proposed Transaction. This letter serves as an agreement of Haddock
Enterprises, Cano, and Carlile (each a “Party” and together the “Parties”)
according to the terms contained herein.

 

First of all, funds are needed in order to continue with the execution
of the Proposed Transaction. Therefore, each Party shall contribute Forty
Thousand Dollars (340,000.00) to Haddock Enterprises (the “Contribution”) for
its continued pursuit of the Proposed Transaction. Each Party will own its same
percentage of its “deal” subject to an estimated ten percent (10%) dilution
that may be granted by Haddock Enterprises to other persons who may contribute
to the Proposed Transaction. As it has done thus far, Haddock Enterprises will
continue to coordinate execution of the Proposed Transaction. Proceeds of the
Contribution shall be used in the following order of priority: (1)
reimbursement of Haddock Enterprises for its expenditures to date in connection
with the
Proposed Transaction. (2) preparation by Haddock Enterprises of the additional
documents described below, and (3) additional expenses as Haddock Enterprises’
reasonably determines necessary to carry out the Proposed Transaction.

 

Secondly. Haddock Enterprises has prepared a letter to he distributed
to Unit Holders of SBR. a copy of which you have already received. If the
Parties determine that further analysis warrants continued pursuit of the
Proposed Transaction then Haddock

 

 

for the preparation and distribution of a
proxy to request the calling of a special meeting of Unit Holders. In addition,
Haddock Enterprises Will
initiate the preparation of a detailed partnership agreement to govern
the relationship among the Parties.

 

Thirdly, if a special meeting
of Unit Holders is called, then Haddock Enterprises will develop an exchange
offer for Unit Holders and additional capital commitments will be made subject
to agreement of all Parties in connection with preparation and execution of
such exchange offer.

 

Enclosed please find SBR’s Form
10-K for 2004. Please wire funds to Haddock Investment’s account number
46l-08l23366 at Chase Bank of Texas (ABA: 113-000-609).

 

This letter contains the entire
agreement among the Parties relative to the matters contained in this letter
and supersedes all prior oral and written agreements and understandings, if
any.

 

If the foregoing accurately
sets forth the understanding and agreement of the Parties, please confirm by
signing this letter on the line provided and returning to the undersigned’s
office.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  HADDOCK ENTERPRISES, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gerald W. Haddock

  	
   

  
	
   

  	
   

  	
  Gerald W. Haddock, its President

  
					

 

EncLosures (1)

 

ACKNOWLEDGED, CONFIRMED. AND
AGREED

 

Cano Petroleum, Inc.

 

	
   

  	
  By:

  	
   /s/
  Jeff Johnson

  	
   

  
	
   

  	
  Jeff
  Johnson, its President

  
	
   

  
	
   

  	
   

  
	
  Kenneth CarlileExhibit 10.1

 

WAIVER AGREEMENT

 

                This Waiver Agreement dated as of March 31, 2005 is
entered into with reference to the Amended and Restated Loan Agreement dated as
of December 14, 2001 among Wheeling Island Gaming, Inc., a Delaware
corporation, the Lenders referred to therein, and Bank of America, N.A., as
Administrative Agent for itself and for the other Lenders (as at any time
amended, the “Loan Agreement”). Capitalized terms used herein are used with the
meanings set forth for those terms in the Loan Agreement.

                A.            Pursuant
to Section 6.13 of the Loan Agreement, the Borrower is required to maintain a
Leverage Ratio as of its Fiscal Quarter ended April 3, 2005, which is not
greater than 2.75:1.00.

                B.            The
Borrower anticipates that the Leverage Ratio as of such date will be in excess
of the required ratio, and has requested this Waiver Agreement.

NOW THEREFORE, the parties
hereto hereby agree as follows:

                1.             Representations
and Warranties.  The Borrower
represents and warrants to the Administrative Agent and the Lenders that (a) as
of April 3, 2005, the Leverage Ratio is not in excess of 3.25:1.00, and (b) no
other Default or Event of Default has occurred and remains continuing.

                2.             Waiver.  In reliance upon the foregoing
representation, and subject to the conditions set forth in Section 3 hereof,
the Administrative Agent, acting with the approval of the Requisite Lenders,
hereby waives the Leverage Ratio covenant set forth in Section 6.13 for the
Fiscal Quarter ended April 3, 2005 only. 
This is a one-time waiver, and the Borrower shall strictly comply with
Section 6.13 in respect of all subsequent Fiscal Quarters.

                3.             Conditions
Precedent.  The following shall be
conditions precedent to the effectiveness of this Waiver Agreement:

                (a)           The
Requisite Lenders shall have executed consents hereto, substantially in the
form of Exhibit A;

                (b)           WDRA
Food Service, Inc. and Wheeling Land Development Corp. shall have countersigned
this Waiver Agreement to evidence their consent hereto.

                4.             Confirmation.  In all other respects, the terms of the Loan
Agreement and the Loan Documents are hereby confirmed.

 

1

 

                IN WITNESS WHEREOF, the parties have executed this
Waiver Agreement as of the date first written above by their duly authorized
representatives.

	
   

  	
   

  	
  WHEELING
  ISLAND GAMING, INC., a West Virginia corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Michael D. Corbin

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President of Finance

  

 

The undersigned consent to
the execution, delivery and performance of this Waiver Agreement and
acknowledge that the Subsidiary Guaranty remains in full force and effect.

WDRA FOOD SERVICE, INC.

 

	
  By:

  	
  /s/ Terry C. Burton

  
	
   

  	
   

  
	
  Title:

  	
  Assistant Manager

  

 

WHEELING LAND DEVELOPMENT
CORP.

 

	
  By:

  	
  /s/ Michael D. Corbin

  
	
   

  	
   

  
	
  Title:

  	
  Treasurer

  

 

2

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
  BANK OF AMERICA, N.A., as Administrative Agent

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Christopher M. Levine

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  

 

 

3

Exhibit A — Form of Lender
Consent

 

 

                This Lender Consent is executed by the undersigned
Lender with reference to the Amended and Restated Loan Agreement dated as of
December 14, 2001 among Wheeling Island Gaming, Inc., a Delaware corporation,
the Lenders referred to therein, and Bank of America, N.A., as Administrative
Agent for itself and for the other Lenders (as at any time amended, the “Loan
Agreement”). Capitalized terms used herein are used with the meanings set forth
for those terms in the Loan Agreement.

                The undersigned Lender hereby consents to the
execution of a Waiver Agreement by the Administrative Agent in respect of the
Leverage Ratio covenant set forth in Section 6.13 of the Loan Agreement for the
Fiscal Quarter ended April 3, 2005 only, substantially in the form of the draft
presented to the Lenders.

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  
								

 

4

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