Document:

Exhibit
10.3

 

SWINGLINE
NOTE

 

	
  $10,000,000.00

  	
   

  	
  December 27,
  2005

  

 

FOR VALUE RECEIVED, the
undersigned, MTR GAMING GROUP, INC., a Delaware corporation, MOUNTAINEER PARK,
INC., a West Virginia corporation, SPEAKEASY GAMING OF LAS VEGAS, INC., a
Nevada corporation, PRESQUE ISLE DOWNS, INC., a Pennsylvania corporation,
SCIOTO DOWNS, INC., an Ohio corporation and SPEAKEASY GAMING OF FREMONT, INC.,
a Nevada corporation (collectively the “Borrowers”) jointly and severally
promise to pay to the order of WELLS FARGO BANK, National Association (the “Swingline
Lender”) at its principal office at 5340 Kietzke Lane, Suite 201, Reno,
Nevada 89511, Attention: Stephen Buntin, Vice President, Commercial Banking
Division, or at such other location as may be directed from time to time by
Swingline Lender by written notice to Borrowers, the principal sum of Ten
Million Dollars ($10,000,000.00) or, if less, the aggregate unpaid principal
amount of all Swingline Advances (as defined in the Credit Agreement,
hereinafter defined) made by the Swingline Lender to or for the benefit of
Borrowers pursuant to the Credit Agreement, in the manner and at the times set
forth in Section 2.08 of the Credit Agreement and, in any event, on or
before ten (10) days prior to the Maturity Date.  Capitalized terms used herein and not
otherwise defined shall have the meanings ascribed thereto in the Credit
Agreement.

 

Borrowers also promise to pay
interest on the unpaid principal amount hereof from time to time outstanding
from the date of each Swingline Advance until repaid at the Base Rate plus the
Applicable Margin, and on the dates specified in the Credit Agreement and in
any event on or before ten (10) days prior to the Maturity Date.

 

Payments of both principal and
interest are to be made in lawful money of the United States of America in same
day or immediately available funds.

 

This Swingline Note is the
Swingline Note described in, and is subject to the terms and provisions of that
certain Fourth Amended and Restated Credit Agreement dated concurrently
herewith, executed by and among Borrowers, Lenders, Swingline Lender, L/C
Issuer and Agent Bank, as described and defined therein (as amended, modified,
supplemented or restated from time to time, the “Credit Agreement”) and payment
of this Swingline Note is secured by the Security Documentation.  Reference is hereby made to the Credit
Agreement for a statement of the rights and obligations of the Borrowers, a
description of the properties mortgaged and assigned, the nature and extent of
the collateral security and the rights of the parties to the Security
Documentation in respect of such collateral security, and for a statement of
the terms and conditions under which the due date of this Swingline Note may be
accelerated.  Upon the occurrence and

 

1

 

continuance of any Event of Default as
specified in the Credit Agreement, the principal balance hereof and the
interest accrued hereon may be declared to be forthwith due and payable.

 

In addition to and not in
limitation of the foregoing and the provisions of the Credit Agreement, the
Borrowers further agree, subject only to any limitation imposed by applicable
law, to pay all expenses, including reasonable attorneys’ fees and legal
expenses, incurred by the Swingline Lender following the occurrence and during
the continuance of an Event of Default in endeavoring to collect any amounts
payable hereunder which are not paid when due, whether by acceleration or
otherwise.

 

All parties hereto, whether as
makers, endorsers, or otherwise, severally waive presentment for payment,
demand, protest and notice of dishonor.

 

This Swingline Note is issued
under, and subject to, the terms, covenants and conditions of the Credit
Agreement, which Credit Agreement is by this reference incorporated herein and
made a part hereof.

 

2

 

IN WITNESS WHEREOF, this
Swingline Note has been executed as of the date first hereinabove written.

 

	
   

  	
   

  	
  BORROWERS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MTR GAMING
  GROUP, INC.,

  
	
   

  	
   

  	
  a Delaware
  corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   /s/ Edson R.
  Arneault

  	
   

  
	
   

  	
   

  	
   

  	
  Edson R.
  Arneault,

  	
   

  
	
   

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MOUNTAINEER
  PARK, INC.,

  
	
   

  	
   

  	
  a West
  Virginia corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   /s/ Edson R.
  Arneault

  	
   

  
	
   

  	
   

  	
   

  	
  Edson R.
  Arneault,

  	
   

  
	
   

  	
   

  	
   

  	
  President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SPEAKEASY
  GAMING OF LAS VEGAS, INC.,

  
	
   

  	
   

  	
  a Nevada
  corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   /s/ Edson R.
  Arneault

  	
   

  
	
   

  	
   

  	
   

  	
  Edson R.
  Arneault,

  	
   

  
	
   

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PRESQUE ISLE
  DOWNS, INC.,

  
	
   

  	
   

  	
  a
  Pennsylvania corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   /s/ Edson R.
  Arneault

  	
   

  
	
   

  	
   

  	
   

  	
  Edson R.
  Arneault,

  	
   

  
	
   

  	
   

  	
   

  	
  President

  

 

3

 

	
   

  	
   

  	
  SCIOTO
  DOWNS, INC.,

  
	
   

  	
   

  	
  an Ohio
  corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   /s/ Edson R.
  Arneault

  	
   

  
	
   

  	
   

  	
   

  	
  Edson R.
  Arneault,

  	
   

  
	
   

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SPEAKEASY
  GAMING OF FREMONT, INC.,

  
	
   

  	
   

  	
  a Nevada
  corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   /s/ Edson R.
  Arneault

  	
   

  
	
   

  	
   

  	
   

  	
  Edson R.
  Arneault,

  	
   

  
	
   

  	
   

  	
   

  	
  President

  

 

4Exhibit 4.2

 

STATE
NATIONAL BANCSHARES, INC.

 

AMENDMENT
TO STOCK OPTION PLAN

 

December 30, 2005

 

On December 30, 2005, the Board of Directors of State National
Bancshares, Inc., a Texas corporation (the “Corporation”),
adopted the following amendment to the Corporation’s Stock Option Plan dated
April 1, 1997.  Section 1.11 of the
Plan is amended to read in its entirety as follows:

 

1.11                        “Fair Market Value” shall mean:

 

(a)                                  If shares of Stock of the same class are
listed or admitted to unlisted trading privileges on any national or regional securities exchange or sales prices for such shares
in the over-the-counter market are reported by the National Association of
Securities Dealers, Inc. Automated Quotations, Inc. (“NASDAQ”)
National Market System at the date of determining the Fair Market Value, the
mean between the highest and lowest quoted selling prices on the last trading
day (on which there were sales) before the date in question; or

 

(b)                                 If shares of Stock of the same class
shall not be listed or admitted to unlisted trading privileges as provided in
Section 1.11(a) and sales prices for such shares shall not be reported by the
NASDAQ National Market System as provided in Section 1.11(a), and bid and asked
prices therefor in the over-the-counter market shall be reported by NASDAQ (or,
if not so reported, by the National Quotation Bureau Incorporated) at the date
of determining the Fair Market Value, the mean of the closing bid and asked
prices on the last day (for which there were bid and asked prices) before the
date in question; and

 

(c)                                  If shares of Stock of the same class
shall not be listed or admitted to unlisted trading privileges as provided in
Section 1.11(a) and sales prices or bid and asked prices for such shares shall
not be reported by NASDAQ (or the National Quotation Bureau Incorporated) as
provided in Section 1.11(a) or Section 1.11(b) at the date of determining the
Fair Market Value, the value determined in good faith by the Board of
Directors.”Exhibit
4.5

 

STATE NATIONAL
BANCSHARES, INC.

 

AMENDMENTS TO DIRECTOR
FEE STOCK PLAN

 

December 30, 2005

 

On December 30, 2005, the Board of Directors of State National
Bancshares, Inc., a Texas corporation (the “Corporation”),
adopted the following amendments to the Corporation’s Director Fee Stock Plan
dated July 13, 1999 (the “Director Plan”).

 

1.             Section 1.08 of the
Director Plan is amended to read in its entirety as follows:

 

“1.08        “Fair Market Value”
of the Common Stock shall mean:

 

(a)           If the Common Stock is listed or admitted
to unlisted trading privileges on any national or regional securities exchange
or sales prices for such shares in the over-the-counter market are reported by
the National Association of Securities Dealers, Inc. Automated Quotations, Inc.
(“NASDAQ”) National Market System at the
date of determining the Fair Market Value, the weighted average of the means
between the highest and lowest sales on the date in question and the nine
trading days preceding the date in question; or

 

(b)           If the Common Stock is not listed or
admitted to unlisted trading privileges as provided in Section 1.08(a) and
sales prices for such shares shall not be reported by the NASDAQ National
Market System as provided in Section 1.08(a), and bid and asked prices therefor
in the over-the-counter market shall be reported by NASDAQ (or, if not so
reported, by the National Quotation Bureau Incorporated) at the date of
determining the Fair Market Value, the weighted average of the means between
the bid and asked prices on date in question and the nine trading days
preceding the date in question; and

 

(c)           If the Common Stock is not listed or
admitted to unlisted trading privileges as provided in Section 1.08(a) and
sales prices or bid and asked prices for such shares is not reported by NASDAQ
(or the National Quotation Bureau Incorporated) as provided in Section 1.08(a)
or Section 1.08(b) at the date of determining the Fair Market Value, the value
determined in good faith by the Board of Directors.”

 

2.             Section 3.03 of the Director
Plan is amended to read in its entirety as follows:

 

“3.03       Deemed Election.  Should an election form not be returned to
the Administrative Committee on time, the election made in the previous year
will be deemed to be the election made for the year in which no timely election
was made.”

 

3.             Section 4 of the
Director Plan is amended to read in its entirety as follows:

 

1

 

“SECTION 4:  PAYMENT OF DIRECTOR FEES

 

4.01         Payment of Fees.  Should a Director elect to receive his or her
Director Fees in cash, payment shall be made monthly.  Should a Director elect to receive his or her
Director Fees in Common Stock, the shares of Common Stock shall be issued
annually each January for fees payable for the immediately preceding calendar
year.

 

4.02         Fractional Shares.  There shall be no fractional shares of Common
Stock issued.  Upon calculation, pursuant
to Section 4.03, of the number of shares to which a Director shall be entitled,
if a fractional amount of shares result, cash in lieu of such fractional shares
shall be paid to the Director.

 

4.03         Calculation of Number of Shares
Issued.  The number of shares to be
issued shall be calculated by dividing the amount of the Director Fees payable
for such year by the Fair Market Value of the Common Stock on the last trading
day of the year preceding the year for which the Director Fees are being paid.”

 

4.             The first paragraph
of Section 5.01 of the Director Plan is amended to read in its entirety as
follows:

 

“5.01       Restriction Legends. 
Common Stock certificates, when issued, may have the following legend,
or statements or other applicable restrictions, endorsed on them, and may not
be immediately transferable:”

 

2

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