Document:

Exhibit

EXHIBIT 10.47

PLEDGE AND SECURITY AGREEMENT

among

MONTREIGN OPERATING COMPANY, LLC,
as Borrower and a Grantor

and 

EACH OF THE OTHER GRANTORS PARTY HERETO,
as Grantors

and 

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,
as Collateral Agent

dated as of January 24, 2017

{10.47 - Empire -  Building Loan Pledge and Security Agreement (execution).DOCX.1}    1

	
			
	NEWYORK 8871481
	 
	 

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TABLE OF CONTENTS
                                           PAGE
SECTION 1.DEFINITIONS; GRANT OF SECURITY.                                    1
1.1General Definitions                                                                                    1
1.2Definitions; Interpretation                                                                          9
SECTION 2.GRANT OF SECURITY.                                                               9
2.1Grant of Security Interest by Grantors                                                     10
2.2Certain Limited Exclusions                                                                      11
SECTION 3.SECURITY FOR OBLIGATIONS; GRANTORS REMAIN LIABLE.                                                                                                          11
3.1Security for Obligations                                                                            11
3.2Continuing Liability Under Collateral                                                      11
SECTION 4.REPRESENTATIONS AND WARRANTIES AND COVENANTS.                                                                                                     11
4.1Generally.                                                                                                  11
4.2Equipment and Inventory                                                                          14
4.3Receivables.                                                                                              15
4.4Investment Related Property.                                                                    16
4.5[Reserved]                                                                                                 21
4.6Letter-of-Credit Rights.                                                                             21
4.7Intellectual Property.                                                                                 22
4.8Commercial Tort Claims.                                                                          24
4.9Perfection of De Minimis Collateral                                                         24

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SECTION 5.ACCESS; RIGHT OF INSPECTION AND FURTHER ASSURANCES; ADDITIONAL GRANTORS.                                                   24
5.1Further Assurances.                                                                                   24
5.2Additional Grantors                                                                                   26
SECTION 6.COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT. 26
6.1Power of Attorney                                                                                     26
6.2No Duty on the Part of Collateral Agent or Secured Parties                     27
SECTION 7.REMEDIES.                                                                                  28
7.1Generally.                                                                                                  28
7.2Application of Proceeds                                                                            30
7.3Sales on Credit                                                                                          30
7.4Investment Accounts                                                                                 30
7.5Investment Related Property                                                                     30
7.6Intellectual Property.                                                                                  31
7.7Cash Proceeds                                                                                            33
SECTION 8.COLLATERAL AGENT.                                                               33
SECTION 9.CONTINUING SECURITY INTEREST; TRANSFER OF LOANS.                                                                                                           33
SECTION 10.STANDARD OF CARE; COLLATERAL AGENT MAY PERFORM.                                                                                                           34
SECTION 11.MISCELLANEOUS.                                                                     34
11.1General                                                                                                       34
11.2Waivers                                                                                                      35
11.3Governing Law                                                                                          36
11.4Regulatory Matters                                                                                    36

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11.5Updates to Disclosure Schedules                                                               37
11.6Consent to Jurisdiction and Waiver of Jury Trial                                       37
11.7Reinstatement                                                                                             37
11.8Amendments                                                                                              37
11.9Intercreditor Agreement                                                                             38

SCHEDULE 4.1 — GENERAL INFORMATION

SCHEDULE 4.2 — LOCATION OF EQUIPMENT AND INVENTORY

SCHEDULE 4.4 — INVESTMENT RELATED PROPERTY

SCHEDULE 4.6 — DESCRIPTION OF LETTERS OF CREDIT

SCHEDULE 4.7 — INTELLECTUAL PROPERTY - EXCEPTIONS

SCHEDULE 4.8 — COMMERCIAL TORT CLAIMS

ANNEX I — JOINDER AGREEMENT

EXHIBIT A — PLEDGE SUPPLEMENT

EXHIBIT B — UNCERTIFICATED SECURITIES CONTROL AGREEMENT

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This PLEDGE AND SECURITY AGREEMENT, dated as of January 24, 2017 (this “Agreement”), is made by (a) MONTREIGN OPERATING COMPANY, LLC, a New York limited liability company (the “Borrower”), and (b) EACH OF THE OTHER PARTIES HERETO, whether as an original signatory hereto or as an Additional Grantor (each, a “Grantor” and, collectively, together with the Borrower, the “Grantors”), in favor of CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, in its capacity as collateral agent for the benefit of the Secured Parties (together with its successors and assigns in such capacity, the “Collateral Agent”).
RECITALS
WHEREAS, reference is made to that certain Building Term Loan Agreement, dated as of the date hereof (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among the Borrower, the banks, financial institutions and other entities from time to time party thereto in the capacity of lenders and Credit Suisse AG, Cayman Islands Branch, in its capacity as administrative agent (together with its successors and assigns in such capacity, the “Administrative Agent”);
WHEREAS, subject to the terms and conditions of the Credit Agreement, certain Grantors may enter into one or more Specified Hedging Agreements or Specified Cash Management Agreements with one or more counterparties to any such Specified Hedging Agreements or any such Specified Cash Management Agreements, respectively; and
WHEREAS, in consideration of the extensions of credit and other accommodations of the Secured Parties as set forth in the Credit Agreement, the Specified Hedging Agreements and the Specified Cash Management Agreements, respectively, each Grantor has agreed to secure such Grantor’s and the other Grantor’s obligations under the Loan Documents, the Specified Hedging Agreements and the Specified Cash Management Agreements as set forth herein.
AGREEMENT
NOW, THEREFORE, in consideration of the agreements, provisions and covenants herein contained, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, each Grantor and the Collateral Agent, for the benefit of the Secured Parties, hereby agree as follows:

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SECTION 1.DEFINITIONS; GRANT OF SECURITY.

1.1    General Definitions.  In this Agreement, the following terms shall have the following meanings:
“Account Debtor” shall mean each Person who is obligated on a Receivable or any Supporting Obligation related thereto as well as each Person that is an “account debtor” as defined in Article 9 of the UCC.
“Accounts” shall mean all “accounts” as defined in Article 9 of the UCC.
“Additional Grantors” shall have the meaning given in Section 5.2.
“Administrative Agent” shall have the meaning given in the recitals.
“Agreement” shall have the meaning given in the preamble.
“Assigned Agreements” shall mean all agreements and contracts (other than the Loan Documents and the Revolving Facility Documents) to which a Grantor is a party as of the date hereof, or to which a Grantor becomes a party after the date hereof, including, without limitation, each Material Contract, as each such agreement may be amended, amended and restated, supplemented or otherwise modified from time to time.
“Bankruptcy Code” shall mean Title 11 of the United States Code entitled “Bankruptcy” as now and hereafter in effect, or any successor statute. 
“Borrower” shall have the meaning given in the preamble.
“Cash Proceeds” shall have the meaning given in Section 7.7.
“Chattel Paper” shall mean all “chattel paper” as defined in Article 9 of the UCC, including, without limitation, “electronic chattel paper” and “tangible chattel paper”, as each term is defined in Article 9 of the UCC.
“Collateral” shall have the meaning given in Section 2.1.
“Collateral Agent” shall have the meaning given in the preamble.
“Collateral Records” shall mean all books, records, ledger cards, files, correspondence, customer lists, blueprints, technical specifications, manuals, computer printouts, tapes, disks and similar items that at any time evidence or contain information relating to any of the Collateral or are otherwise necessary or helpful in the collection thereof or realization thereupon.
“Collateral Support” shall mean all property (real or personal) assigned, hypothecated or otherwise securing any Collateral and shall include any security agreement or other agreement granting a lien or security interest in such real or personal property.

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“Commercial Tort Claims” shall mean all “commercial tort claims” as defined in Article 9 of the UCC, including, without limitation, all commercial tort claims listed on Schedule 4.8.
“Commodities Accounts” (i) shall mean all “commodity accounts” as defined in Article 9 of the UCC and (ii) shall include, without limitation, all of the accounts listed on Schedule 4.4(E) under the heading “Commodities Accounts.”
“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.
“Copyright Licenses” shall mean any and all agreements providing for the granting of any right in or to Copyrights (whether any Grantor is licensee or licensor thereunder) including, without limitation, each agreement referred to in Schedule 4.7(B).
“Copyrights” shall mean all United States and foreign copyrights (including community designs), including but not limited to copyrights in software and databases, whether registered or unregistered, and, with respect to any and all of the foregoing: (i) all registrations, recordings and applications therefor including, without limitation, the registrations and applications referred to in Schedule 4.7(A); (ii) all extensions and renewals, and any right to obtain any extensions and renewals, thereof; and (iii) all rights corresponding thereto throughout the world.
“Credit Agreement” shall have the meaning given in the recitals.
“Deposit Accounts” (i) shall mean all “deposit accounts” as defined in Article 9 of the UCC and (ii) shall include, without limitation, all of the accounts listed on Schedule 4.4(F) under the heading “Deposit Accounts”.
“Documents” shall mean all “documents” as defined in Article 9 of the UCC.
“Domain Names” shall mean all Internet domain names and associated uniform resource locator addresses.
“Equipment” shall mean: (i) all “equipment” as defined in Article 9 of the UCC; (ii) all machinery, manufacturing equipment, data processing equipment, computers, office equipment, furnishings, furniture, appliances, fixtures and tools (in each case, regardless of whether characterized as equipment under the UCC); and (iii) all accessions or additions thereto, all parts thereof, whether or not at any time of determination incorporated or installed therein or attached thereto, and all replacements therefor, wherever located, now or hereafter existing, including any fixtures.
“Excluded Accounts” shall mean any Deposit Account or Securities Account holding (i) solely Cash and Cash Equivalents required pursuant to Gaming Laws or by Gaming Authorities to be deposited into Gaming Reserves to the extent that a security interest in such Deposit Account may not be granted under applicable Gaming Laws, (ii) solely Cash and Cash Equivalents held, pursuant to ordinary course operations, in payroll accounts of Persons providing the Loan 

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Parties payroll services, (iii) solely Cash and Cash Equivalents on deposit in 401(k) accounts, trust accounts and pension accounts established in the ordinary course of business, (iv) solely Cash or Cash Equivalents on deposit in segregated accounts for the benefit of the New York State Gaming Commission established in the ordinary course of business, (v) solely proceeds of Indebtedness (and proceeds of such proceeds) incurred pursuant to Section 6.01(j) of the Credit Agreement that have been pledged to the providers of such Indebtedness, (vi) solely Cash and Cash Equivalents held in escrow, fiduciary or cash collateral accounts in the ordinary course of business, (vii) solely Cash and Cash Equivalents in a zero balance account, (viii) solely Cash and Cash Equivalents that do not exceed, at any time for all such Deposit Accounts, $100,000 individually or $500,000 in the aggregate, (ix) solely Cash and Cash Equivalents securing obligations under Hedging Agreements permitted by Section 6.02(bb) of the Credit Agreement or (x) solely Cash and Cash Equivalents held for the purposes described in Section 5.15(b)(viii) of the Credit Agreement.
“Excluded Swap Obligation” shall mean, with respect to any Guarantor, (x) as it relates to all or a portion of the Guarantee of such Guarantor, any Swap Obligation if, and to the extent that, such Swap Obligation (or any Guarantee thereof) is or becomes illegal or unlawful under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the Guarantee of such Guarantor would otherwise become effective with respect to such Swap Obligation or (y) as it relates to all or a portion of the grant by such Guarantor of a security interest, any Swap Obligation if, and to the extent that, such Swap Obligation (or such security interest in respect thereof)  is or becomes illegal or unlawful under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the security interest of such Guarantor would otherwise become effective with respect to such Swap Obligation. If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Guarantee or security interest is or becomes illegal or unlawful.
“General Intangibles” (i) shall mean all “general intangibles” as defined in Article 9 of the UCC, including all “payment intangibles” also as defined in Article 9 of the UCC and (ii) shall include, without limitation, all interest rate or currency protection or hedging arrangements, all tax refunds, all licenses, permits, concessions and authorizations, all Assigned Agreements and all Intellectual Property (in each case, regardless of whether characterized as general intangibles under the UCC).
“Goods” (i) shall mean all “goods” as defined in Article 9 of the UCC and (ii) shall include, without limitation, all Inventory and Equipment (in each case, regardless of whether characterized as goods under the UCC).
“Grantors” shall have the meaning given in the preamble.
“Instruments” shall mean all “instruments” as defined in Article 9 of the UCC.

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“Insurance” shall mean (i) all insurance policies covering any or all of the Collateral (regardless of whether the Collateral Agent is the loss payee thereof) and (ii) all key man life insurance policies.
“Intellectual Property” shall mean, collectively, all rights, priorities and privileges with respect to intellectual property (including rights in such intellectual property that arise under any Intellectual Property Licenses), whether arising under United States, multinational or foreign laws or otherwise, including, without limitation, the Copyrights, the Patents, the Trademarks, the Domain Names, the Trade Secrets, and all rights to sue at law or in equity for any infringement or other impairment thereof, including the right to receive all proceeds and damages therefrom.
“Intellectual Property Licenses” shall mean, collectively, the Copyright Licenses, the Patent Licenses, the Trademark Licenses and the Trade Secret Licenses.
“Inventory” shall mean (i) all “inventory” as defined in Article 9 of the UCC and (ii) all goods held for sale or lease or to be furnished under contracts of service or so leased or furnished, all raw materials, work in process, finished goods, and materials used or consumed in the manufacture, packing, shipping, advertising, selling, leasing, furnishing or production of such inventory or otherwise used or consumed in any Grantor’s business; all goods in which any Grantor has an interest in mass or a joint or other interest or right of any kind; and all goods which are returned to or repossessed by any Grantor, all computer programs embedded in any goods and all accessions thereto and products thereof (in each case, regardless of whether characterized as inventory under the UCC).
“Investment Accounts” shall mean the Securities Accounts, Commodities Accounts and Deposit Accounts.
“Investment Related Property” shall mean: (i) all “investment property” (as such term is defined in Article 9 of the UCC) and (ii) all of the following (regardless of whether classified as investment property under the UCC): all Pledged Equity Interests, all Pledged Debt, the Investment Accounts and all certificates of deposit.
“Joinder Agreement” shall mean a Joinder Agreement substantially in the form of Annex I.
“Letter-of-Credit Right” shall mean “letter-of-credit right” as defined in Article 9 of the UCC.
“Money” shall mean “money” as defined in the UCC.
“Non-Assignable Contract” shall mean any agreement, contract, permit, license or other similar government approval to which any Grantor is a party that by its terms purports to restrict or prevent the assignment or granting of a security interest therein (either by its terms or by any federal or state statutory prohibition or otherwise irrespective of whether such prohibition or restriction is enforceable under Section 9-406 through 409 of the UCC).

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“Patent Licenses” shall mean all agreements providing for the granting of any right in or to Patents (whether any Grantor is licensee or licensor thereunder) including, without limitation, each agreement referred to in Schedule 4.7(D).
“Patents” shall mean all United States and foreign patents and certificates of invention, or similar industrial property rights, and applications for any of the foregoing, including, but not limited to: (i) each patent and patent application referred to in Schedule 4.7(C); (ii) all reissues, divisions, continuations, continuations-in-part, extensions, renewals, and reexaminations, and any right to obtain any reissues, divisions, continuations, continuations-in-part, extensions, renewals, and reexaminations, thereof; (iii) all rights corresponding thereto throughout the world; (iv) all inventions and improvements described therein; and (v) all claims, damages, and proceeds of suit arising therefrom.
“Pledge Supplement” shall mean any supplement to this Agreement in substantially the form of Exhibit A, together with all supplements to schedules attached thereto.
“Pledged Debt” shall mean all Indebtedness owed to any Grantor, including, without limitation, all Indebtedness described on Schedule 4.4(C) under the heading “Pledged Debt,” issued by the obligors named therein, the instruments evidencing such Indebtedness, and all interest, cash, instruments and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such Indebtedness.
“Pledged Equity Interests” shall mean all Pledged Stock, Pledged LLC Interests, Pledged Partnership Interests and Pledged Trust Interests.  
“Pledged LLC Interests” shall mean all current and future interests in any limited liability company owned by any Grantor, including, without limitation, all limited liability company interests listed on Schedule 4.4(A) under the heading “Pledged LLC Interests,” and the certificates, if any, representing such limited liability company interests and any interest of such Grantor on the books and records of such limited liability company or on the books and records of any securities intermediary pertaining to such interest and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such limited liability company interests.  
“Pledged Partnership Interests” shall mean all current and future interests in any general partnership, limited partnership, limited liability partnership or other partnership owned by any Grantor, including, without limitation, all partnership interests listed on Schedule 4.4(A) under the heading “Pledged Partnership Interests,” and the certificates, if any, representing such partnership interests and any interest of such Grantor on the books and records of such partnership or on the books and records of any securities intermediary pertaining to such interest and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such partnership interests.  

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“Pledged Stock” shall mean all current and future shares of capital stock owned by any Grantor, including, without limitation, all shares of capital stock described on Schedule 4.4(A) under the heading “Pledged Stock,” and the certificates, if any, representing such shares and any interest of such Grantor on the books and records of the issuer of such shares or on the books and records of any securities intermediary pertaining to such shares, and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such shares. 
“Pledged Trust Interests” shall mean all current and future interests in any trust owned by any Grantor, including, without limitation, all trust interests listed on Schedule 4.4(A) under the heading “Pledged Trust Interests,” and the certificates, if any, representing such trust interests and any interest of such Grantor on the books and records of such trust or on the books and records of any securities intermediary pertaining to such interest and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such trust interests.
“Proceeds” shall mean: (i) all “proceeds” as defined in Article 9 of the UCC; and (ii) shall include all dividends, payments or distributions made with respect to any Investment Related Property and whatever is receivable or received when Collateral or proceeds are sold, exchanged, collected or otherwise disposed of, whether such disposition is voluntary or involuntary (in each case, regardless of whether characterized as proceeds under the UCC).
“Qualified ECP Guarantor” shall mean, in respect of any Swap Obligation, each Guarantor that has total assets exceeding $10,000,000 at the time the relevant Guarantee or grant of the relevant security interest becomes effective with respect to such Swap Obligation or such other Person as constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulations promulgated thereunder and can cause another Person to qualify as an “eligible contract participant” at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.
“Quarterly Update Date” shall mean the Closing Date and the last day of any Fiscal Quarter until the first Fiscal Quarter in which a Compliance Certificate for such Fiscal Quarter is delivered or required to be delivered under Section 5.01(d) of the Credit Agreement and thereafter, the date on which a Compliance Certificate for such Fiscal Quarter is delivered.
“Receivables” shall mean all rights to payment, whether or not earned by performance, for goods or other property sold, leased, licensed, assigned or otherwise disposed of, or services rendered or to be rendered, including, without limitation all such rights constituting or evidenced by any Account, Chattel Paper, Instrument, General Intangible or Investment Related Property, together with all of Grantor’s rights, if any, in any goods or other property giving rise to such right to payment and all Collateral Support and Supporting Obligations related thereto and all Receivables Records.

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“Receivables Records” shall mean (i) all originals or copies of all documents, instruments or other writings or electronic records or other Records evidencing the Receivables; (ii) all books, correspondence, credit or other files, Records, ledger sheets or cards, invoices, and other papers relating to Receivables, including, without limitation, all tapes, cards, computer tapes, computer discs, computer runs, record keeping systems and other papers and documents relating to the Receivables, whether in the possession or under the control of any Grantor or any computer bureau or agent from time to time acting for any Grantor or otherwise; (iii) all evidences of the filing of financing statements and the registration of other instruments in connection therewith, and amendments, supplements or other modifications thereto, notices to other creditors or secured parties, and certificates, acknowledgments, or other writings, including, without limitation, lien search reports, from filing or other registration officers; (iv) all credit information, reports and memoranda relating thereto; and (v) all other written or nonwritten forms of information related in any way to the foregoing or any Receivable.
“Record” shall have the meaning specified in Article 9 of the UCC.
“Sale Proceeds” shall mean (i) the proceeds from the sale of the Borrower or one or more of the other Grantors, as a going concern or from the sale of the business as a going concern, (ii) the proceeds from another sale or disposition of any assets of the Grantors that includes any Gaming License, Permit or approval or benefits from any Gaming License, Permit or approval or where the assets sold have the benefit of any Gaming License, Permit or approval or (iii) any other economic value (whether in the form of cash or otherwise) received, ascribed or distributed that is associated with the Gaming Licenses, Permits or approvals.
“Secured Obligations” shall have the meaning given in Section 3.1.
“Securities Accounts” (i) shall mean all “securities accounts” as defined in Article 8 of the UCC and (ii) shall include, without limitation, all of the accounts listed on Schedule 4.4(D) under the heading “Securities Accounts.”
“Securities Entitlements” shall mean all “securities entitlements” as defined in Article 8 of the UCC.
“Software” shall mean all computer programs, object code, source code and supporting documentation, including, without limitation, all “software” as such term is defined in the New York UCC and computer programs that may construed as included in the definition of “goods” in the New York UCC, all licensed rights to the foregoing, and all media on which any such programs, code, documentation or associated data may be stored.
“Supporting Obligation” shall mean all “supporting obligations” as defined in Article 9 of the UCC.
“Swap Obligation” shall mean, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.

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“Termination Date” shall mean the date on which all Secured Obligations have been “paid in full” as such term is defined in the Credit Agreement.
“Trademark Licenses” shall mean any and all agreements providing for the granting of any right in or to Trademarks (whether any Grantor is licensee or licensor thereunder) including, without limitation, each agreement referred to in Schedule 4.7(F).
“Trademarks” shall mean all United States and foreign trademarks, trade names, corporate names, company names, business names, fictitious business names, , service marks, certification marks, collective marks, logos, other source or business identifiers, designs and general intangibles of a like nature, and all registrations and applications for any of the foregoing including, but not limited to: (i) the registrations, recordings and applications referred to in Schedule 4.7(E); (ii) all extensions and renewals, and any right to obtain any extensions and renewals, of any of the foregoing;  and(iii) all of the goodwill of the business connected with the use of and symbolized by the foregoing.
“Trade Secret Licenses” shall mean any and all agreements providing for the granting of any right in or to Trade Secrets (whether any Grantor is licensee or licensor thereunder) including, without limitation, each agreement referred to in Schedule 4.7(G). 
“Trade Secrets” shall mean all trade secrets and all other confidential or proprietary information and know-how whether or not such Trade Secret has been reduced to a writing or other tangible form, including all documents and things embodying, incorporating, or referring in any way to such Trade Secret.
“UCC” shall mean the Uniform Commercial Code as the same may, from time to time, be in effect in the State of New York; provided, however, in the event that, by reason of mandatory provisions of law, any or all of the perfection or priority of the security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or priority and for purposes of definitions related to such provisions.
“Unincorporated Materials” shall have the meaning given in the Disbursement Agreement. 

1.2    Definitions; Interpretation.  All capitalized terms used herein (including the preamble and recitals hereto) and not otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement or, if not defined therein, in the UCC.  The rules of construction set forth in Sections 1.02 through 1.08 of the Credit Agreement, including with respect to the meaning of the expressions “payment in full”, “paid in full” and any other similar terms or phrases, shall be applicable to this Agreement mutatis mutandis.  If any conflict or inconsistency exists between this Agreement and the Credit Agreement, the Credit Agreement shall govern.  All references herein to provisions of the UCC shall include all successor provisions under any subsequent version or amendment to any Article of the UCC.  Except as expressly specified otherwise herein, any reference 

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herein to any Exhibit or Schedule to this Agreement shall be deemed to refer to such Exhibit or Schedule as amended or supplemented from time to time. 

SECTION 2.    GRANT OF SECURITY. 

2.1    Grant of Security Interest by Grantors.  Each Grantor hereby assigns as collateral security to the Collateral Agent (for the ratable benefit of the Secured Parties), and hereby grants to the Collateral Agent (for the ratable benefit of the Secured Parties) a security interest in and continuing lien on, all of such Grantor’s right, title and interest in, to and under all personal property of such Grantor including, without limitation, all of the following property of such Grantor, in each case whether now owned or existing or hereafter acquired or arising and wherever located (collectively, but exclusive of any Excluded Collateral, the “Collateral”), for the prompt and complete payment and performance in full when due and with all rights and remedies under the UCC and other applicable law (whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise) of the Secured Obligations: 
(a)    Accounts;
(b)    Chattel Paper;
(c)    Documents;
(d)    General Intangibles;
(e)    Goods;
(f)    Instruments;
(g)    Insurance;
(h)    Intellectual Property;
(i)    Software;
(j)    Investment Related Property;
(k)    Letters of Credit and Letter-of-Credit Rights;
(l)    Money;
(m)    Receivables and Receivable Records;
(n)    Commercial Tort Claims;  

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(o)    Pledged Equity Interests; 
(p)    Sale Proceeds;
(q)    to the extent not otherwise included above, all Collateral Records, Collateral Support and Supporting Obligations relating to any of the foregoing; and
(r)    to the extent not otherwise included above, all Proceeds, right to Proceeds, products, accessions, rents and profits of or in respect of any of the foregoing.

2.2    Certain Limited Exclusions.  Notwithstanding anything herein to the contrary, but subject to the last sentence of this Section 2.2, in no event shall the security interest granted under Section 2.1 attach to any Excluded Collateral, and Collateral shall not include any Excluded Collateral.  Notwithstanding the foregoing, all Proceeds of the Excluded Collateral and the right to receive such Proceeds shall constitute Collateral hereunder to the extent such Proceeds do not independently constitute Excluded Collateral and shall be included within the property and assets over which a security interest is granted under Section 2.1, except to the extent such Proceeds would constitute Excluded Collateral. 

SECTION 3.    SECURITY FOR OBLIGATIONS; GRANTORS REMAIN LIABLE.

3.1    Security for Obligations.  This Agreement secures, and the Collateral is collateral security for, with respect to each Grantor, the prompt and complete payment and performance in full when due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including the payment of amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code), of all Obligations of such Grantor (collectively, the “Secured Obligations”).  Notwithstanding any provision hereof or in any other Loan Document to the contrary, in no event will the Secured Obligations include any Excluded Swap Obligations.  

3.2    Continuing Liability Under Collateral.  Notwithstanding anything herein to the contrary, (i) each Grantor shall remain liable for obligations under the Collateral and nothing contained herein is intended or shall be a delegation of duties to the Collateral Agent or any Secured Party; (ii) each Grantor shall remain liable under each of the agreements included in the Collateral, including, without limitation, any agreements relating to Pledged Partnership Interests or Pledged LLC Interests, in each case to perform all of the obligations undertaken by it thereunder all in accordance with and pursuant to the terms and provisions thereof and neither the Collateral Agent nor any other Secured Party shall have any obligation or liability under any of such agreements by reason of or arising out of this Agreement or any other document related thereto nor shall the Collateral Agent nor any other Secured Party have any obligation to make any inquiry as to the nature or sufficiency of any payment received by it or have any obligation to take any action to 

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collect or enforce any rights under any agreement included in the Collateral, including, without limitation, any agreements relating to Pledged Partnership Interests or Pledged LLC Interests; and (iii) the exercise by the Collateral Agent of any of its rights hereunder shall not release any Grantor from any of its duties or obligations under the contracts and agreements included in the Collateral.

SECTION 4.    REPRESENTATIONS AND WARRANTIES AND COVENANTS.

4.1    Generally.  
(a)    Representations and Warranties.  Each Grantor hereby represents and warrants, on the Closing Date and on each Credit Date (or with respect to clauses (ii)(y), (vii), and (viii) below, as of the last Quarterly Update Date), that:
(i)    it has indicated on Schedule 4.1(A): (A) the type of organization of such Grantor, (B) the jurisdiction of organization of such Grantor, (C) its organizational identification number and (D) the jurisdiction where the chief executive office or its sole place of business is, and for the one-year period preceding the date hereof (or such shorter period as such Grantor has been in existence) has been, located; 
(ii)    (x) the full legal name of such Grantor is as set forth on Schedule 4.1(A) and (y) it has not done in the last five (5) years (or such shorter period as such Grantor has been in existence), and does not do, business under any other name (including any trade-name or fictitious business name) except for those names set forth on Schedule 4.1(B);
(iii)    except as described on Schedule 4.1(C), it has not changed its jurisdiction of organization, chief executive office or sole place of business or its corporate structure in any way (e.g., by merger, consolidation, change in corporate form or otherwise) within the past five (5) years (or such shorter period as such Grantor has been in existence);
(iv)    (A) upon the filing of all UCC financing statements naming each Grantor as “debtor” and the Collateral Agent as “secured party” and describing the Collateral in the filing offices set forth opposite such Grantor’s name on Schedule 4.1(E) and other filings delivered by each such Grantor; (B) upon delivery of all Instruments, Chattel Paper and certificated Pledged Equity Interests and Pledged Debt; (C) upon sufficient identification of Commercial Tort Claims; (D) upon execution by all applicable parties thereto of a control agreement establishing the Collateral Agent’s “control” (within the meaning of Section 8-106, 9-106 or 9-104 of the UCC, as applicable) with respect to any Investment Account (other than any Excluded Account); (E) upon consent of the issuer with respect to Letter-of-Credit Rights; (F) to the extent not subject to Article 9 of the UCC, upon recordation of the security interests granted hereunder in material registered Patents, Trademarks and Copyrights in the United States Patent and Trademark Office and the United States Copyright 

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Office, as applicable; and (G) in the case of Money, the Collateral Agent taking possession of such Money, the security interests granted to the Collateral Agent hereunder constitute valid and perfected (with respect to Intellectual Property, only if and to the extent perfection may be achieved in the United States by the recordations referred to in clauses (A) and (F)) first priority Liens (subject only to Permitted Liens but prior and superior in right to the rights of any other Person (except in the case of Collateral other than Pledged Equity Interests, Persons holding Senior Permitted Liens and then only to the extent thereof)) on all of the Collateral (other than (w) Insurance to the extent it cannot be perfected under the UCC, (x) motor vehicles, (y) any Intellectual Property arising under laws other than that of the United States and (z) On-Site Cash and other Cash not required to be deposited in an Investment Account pursuant to the Loan Documents (except, with respect to clause (z), to the extent constituting proceeds of other Collateral));
(v)    subject to Section 11.4, all actions and consents, including all filings, notices, registrations and recordings necessary for the exercise by the Collateral Agent of the voting or other rights provided for in this Agreement or the exercise of remedies in respect of the Collateral have been made or obtained, other than those required under Gaming Laws and federal and state securities laws (with respect only to the exercise of remedies) and consents required in connection with Non-Assignable Contracts;  
(vi)    no authorization, approval or other action by, and no notice to or filing with, any Governmental Authority or regulatory body is required for either (A) the pledge or grant by any Grantor of the Liens purported to be created in favor of the Collateral Agent hereunder (other than such authorizations, approvals or actions obtained on or prior to the date hereof) or (B) subject to Section 11.4, the exercise by Collateral Agent of any rights or remedies in respect of any Collateral (whether specifically granted or created hereunder or created or provided for by applicable law), except (y) for the filings, actions and approvals contemplated by clause (iv) above and (z) in the case of the exercise of the voting or other rights provided for in this Agreement or the exercise of remedies, those contemplated by clause (v) above, including as may be required under Gaming Laws and in connection with the disposition of any Investment Related Property by laws generally affecting the offering and sale of Securities;
(vii)    except as described on Schedule 4.1(F), none of the Collateral constitutes, or is the Proceeds of, “farm products” (as defined in the UCC);
(viii)    except as described on Schedule 4.1(G), it does not own any “as extracted collateral” (as defined in the UCC) or any timber to be cut; and

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(ix)    each Grantor has been duly organized as an entity of the type as set forth opposite such Grantor’s name on Schedule 4.1(A) solely under the laws of the jurisdiction as set forth opposite such Grantor’s name on Schedule 4.1(A) and, except as disclosed from time to time to the Collateral Agent and the Administrative Agent in writing, remains duly existing as such, and no such Grantor has filed any certificates of domestication, transfer or continuance in any other jurisdiction.
(b)    Covenants and Agreements.  Each Grantor hereby covenants and agrees that:
(i)    except for the security interest created by this Agreement, it shall not create or suffer to exist any Lien upon or with respect to any of the Collateral, except Permitted Liens;
(ii)    it shall not change such Grantor’s name, identity, corporate structure (e.g., by merger, consolidation, change in corporate form or otherwise), sole place of business, chief executive office, type of organization or jurisdiction of organization unless it shall have (A) notified the Collateral Agent and the Administrative Agent in writing, by executing and delivering to the Collateral Agent and the Administrative Agent a completed Pledge Supplement at least ten (10) days prior to any such change or establishment, identifying such new proposed name, identity, corporate structure, sole place of business, chief executive office, type of organization, or jurisdiction of organization and providing such other information in connection therewith as the Collateral Agent and the Administrative Agent may reasonably request and (B) taken all actions necessary to maintain the continuous validity, perfection and the same or better priority of the Collateral Agent’s security interest in the Collateral intended to be granted and agreed to hereby; and
(iii)    it shall not sell, transfer or assign (by operation of law or otherwise) any Collateral except in accordance with the Credit Agreement and the other Loan Documents. 

4.2    Equipment and Inventory
(a)    Representations and Warranties.  Each Grantor represents and warrants, on the Closing Date and on each Credit Date, that, as of the last Quarterly Update Date:
(i)    except with respect to Equipment or Inventory having a value of less than $500,000 individually or $2,000,000 in the aggregate (across all Grantors), all Equipment and Inventory included in the Collateral (other than such Equipment and Inventory that is in transit, out for repair or on loan to employees in the ordinary course of business or Unincorporated Materials) is located only at the locations specified in Schedule 4.2; and

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(ii)    Schedule 4.2 contains the name and address of any warehouseman, bailee or other third party in possession of any Inventory or Equipment included in the Collateral other than any Inventory or Equipment having a value less than $500,000 individually or $1,000,000 in the aggregate (across all Grantors) or otherwise constituting Unincorporated Materials.
(b)    Covenants and Agreements.  Each Grantor covenants and agrees that:
(i)    except with respect to property having a value of less than $2,000,000 in the aggregate (across all Grantors) and any property that is in transit, out for repair or on loan to employees in the ordinary course of business or Unincorporated Materials, it shall keep the Equipment and Inventory included in the Collateral and any Documents evidencing any such Equipment and Inventory in the locations specified in Schedule 4.2 unless it shall have (A) notified the Collateral Agent and the Administrative Agent in writing, by executing and delivering to the Collateral Agent and the Administrative Agent a completed Pledge Supplement on or before the next Quarterly Update Date after any change in locations, identifying such new locations and providing such other information in connection therewith as the Collateral Agent or the Administrative Agent may reasonably request and (B) taken all actions necessary or advisable to maintain the continuous validity, perfection and the same or better priority of the Collateral Agent’s security interest in the Collateral intended to be granted and agreed to hereby, or to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder, with respect to such Equipment and Inventory;  
(ii)    it shall not deliver any Document evidencing any Equipment and Inventory included in the Collateral to any Person other than the issuer of such Document to claim the Goods evidenced therefor or the Collateral Agent; and
(iii)    except for Equipment or Inventory having a value of less than $500,000 individually or $2,000,000 in the aggregate (across all Grantors) or otherwise constituting Unincorporated Materials, if any Equipment or Inventory is in possession or control of any third party (other than such Equipment and Inventory that is in transit, out for repair or on loan to employees in the ordinary course of business), each Grantor shall, at the request of the Collateral Agent, join with the Collateral Agent in notifying the third party of the Collateral Agent’s security interest.

4.3    Receivables. 
(a)    Covenants and Agreements:  Each Grantor hereby covenants and agrees that:
(i)    other than in the ordinary conduct of its business or the extension of payment terms of markers of gaming patrons (including credit arrangements pursuant to Section 1339 

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of the New York State Racing, Pari-Mutuel Wagering and Breeding Law and other Gaming Laws), and except as otherwise provided in subsection (ii) below, during the continuance of an Event of Default, such Grantor shall not (A) grant any extension or renewal of the time of payment of any Receivable, (B) compromise or settle any dispute, claim or legal proceeding with respect to any Receivable for less than the total unpaid balance thereof, (C) release, wholly or partially, any Person liable for the payment thereof, or (D) allow any credit or discount thereon;
(ii)    at any time following the occurrence and during the continuation of an Event of Default, the Collateral Agent shall have the right at any time to (A) notify, or require any Grantor to notify, any Account Debtor of the Collateral Agent’s security interest in the Receivables and any Supporting Obligation, (B) direct the Account Debtors under any Receivables to make payment of all amounts due or to become due to such Grantor thereunder directly to the Collateral Agent, (C) notify, or require any Grantor to notify, each Person maintaining a lockbox or similar arrangement to which Account Debtors under any Receivables have been directed to make payment to remit all amounts representing collections on checks and other payment items from time to time sent to or deposited in such lockbox or other arrangement directly to the Collateral Agent, and (D) enforce, at the expense of such Grantor, collection of any such Receivables and to adjust, settle or compromise the amount or payment thereof, in the same manner and to the same extent as such Grantor might have done.  If the Collateral Agent notifies any Grantor that it has elected to collect the Receivables in accordance with the preceding sentence, any payments of Receivables received by such Grantor shall be forthwith (and in any event within two (2) Business Days) deposited by such Grantor in the exact form received, duly indorsed by such Grantor to the Collateral Agent if required, in an Investment Account “controlled” (for purposes of the UCC) by the Collateral Agent (it being understood that each Grantor agrees to promptly comply with any reasonable request of the Collateral Agent to establish or enter into a Control Agreement with respect to such an Investment Account), and until so turned over, all amounts and proceeds (including checks and other instruments) received by such Grantor in respect of the Receivables, any Supporting Obligation or Collateral Support shall be received in trust for the benefit of the Collateral Agent hereunder and shall be segregated from other funds of such Grantor and such Grantor shall not adjust, settle or compromise the amount or payment of any Receivable, or release wholly or partly any Account Debtor or obligor thereof, or allow any credit or discount thereon; and
(iii)    it shall use its commercially reasonable efforts to keep in full force and effect any Supporting Obligation or Collateral Support relating to any Receivable in excess of $500,000.

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(b)    Delivery and Control of Receivables.  With respect to any Receivables (other than (i) Receivables generated by casino patrons in the ordinary course of gaming activities and (ii) other Receivables in an amount no greater than $500,000 individually or $2,000,000 in the aggregate (across all Grantors)) that are evidenced by, or constitute, Chattel Paper or Instruments (other than checks received in the ordinary course of business), each Grantor shall cause each originally executed copy thereof to be delivered to the Collateral Agent (or its agent or designee) appropriately indorsed to the Collateral Agent or indorsed in blank: (A) with respect to any such Receivables in existence on the date hereof, on or prior to the date hereof, and (B) with respect to any such Receivables hereafter arising, on or before the immediately succeeding Quarterly Update Date.  With respect to any Receivables (other than (i) Receivables generated by casino patrons in the ordinary course of gaming activities and (ii) other Receivables in an amount no greater than $500,000 individually or $2,000,000 in the aggregate (across all Grantors)) which would constitute “electronic chattel paper” under Article 9 of the UCC, each Grantor shall take all steps necessary to give the Collateral Agent control over such Receivables (within the meaning of Section 9-105 of the UCC):  (A) with respect to any such Receivables in existence on the date hereof, on or prior to the date hereof, and (B) with respect to any such Receivables hereafter arising, on or before the immediately succeeding Quarterly Update Date.  

4.4    Investment Related Property. 
4.4.1    Investment Related Property Generally.
(a)    Covenants and Agreements.  Each Grantor hereby covenants and agrees that:
(i)    in the event it acquires rights in any Investment Related Property (other than Cash Equivalents credited to a Securities Account) that is Collateral after the date hereof with a value in excess of $500,000 individually or $2,000,000 in the aggregate, it shall deliver to the Collateral Agent and the Administrative Agent, on or before the Quarterly Update Date immediately following any such acquisition, a completed Pledge Supplement reflecting such new Investment Related Property.  Notwithstanding the foregoing, it is understood and agreed that the security interest of the Collateral Agent shall attach to all Investment Related Property that is Collateral immediately upon any Grantor’s acquisition of rights therein and shall not be affected by the failure of any Grantor to deliver a supplement to Schedule 4.4 as required hereby;
(ii)    except as provided in the immediately succeeding sentence, in the event such Grantor receives any dividends, interest or distributions on any Investment Related Property that is Collateral, or any securities or other property upon the merger, consolidation, liquidation or dissolution of any issuer of any such Investment Related Property, then (A) such dividends, interest or distributions and securities or other property shall be included 

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in the definition of Collateral without further action and (B) such Grantor shall promptly take all actions, if any, necessary or, in the reasonable opinion of the Collateral Agent upon notice to such Grantor, necessary to ensure the validity, perfection, at least the same priority and, if applicable, control of the Collateral Agent over such Investment Related Property (including, without limitation, delivery thereof to the Collateral Agent) intended to be granted and agreed to hereby and pending any such action such Grantor shall be deemed to hold such dividends, interest, distributions, securities or other property in trust for the benefit of the Collateral Agent and shall segregate such dividends, distributions, securities or other property from all other property of such Grantor.  Notwithstanding the foregoing, so long as no Event of Default shall have occurred and be continuing, the Collateral Agent authorizes each Grantor to retain all dividends and distributions paid and all payments of principal and interest; and
(iii)    each Grantor consents to the grant by each other Grantor of a security interest in all Investment Related Property that is Collateral to the Collateral Agent.
(b)    Delivery and Control.  
With respect to any Investment Related Property that is Collateral that is (a) represented by a certificate or (b) that is an “instrument” (other than (i) any Investment Related Property credited to a Securities Account, (ii) instruments generated by casino patrons in the ordinary course of gaming activities, (iii) Investment Related Property constituting Pledged Debt with an aggregate value of less than $500,000 and (iv) checks received in the ordinary course of business), it shall cause such certificate or instrument to be delivered to the Collateral Agent, indorsed in blank by an “effective indorsement” (as defined in Section 8-107 of the UCC), regardless of whether such certificate constitutes a “certificated security” for purposes of the UCC.  With respect to any Investment Related Property that is Collateral that is an “uncertificated security” for purposes of the UCC (other than any “uncertificated securities” credited to a Securities Account), it shall use reasonable commercial efforts to cause the issuer of such uncertificated security to either (A) register the Collateral Agent as the registered owner thereof on the books and records of the issuer or (B) execute an agreement substantially in the form of Exhibit B, pursuant to which such issuer agrees to comply with the Collateral Agent’s instructions with respect to such uncertificated security without further consent by such Grantor.    
(c)    Voting and Distributions.
(i)    Subject to clause (ii) below, each Grantor shall be entitled to exercise or refrain from exercising any and all voting and other consensual rights pertaining to the Investment Related Property or any part thereof.

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(ii)    Upon the occurrence and during the continuation of an Event of Default and following written notice by the Collateral Agent to such Grantor (although no such notice shall be required if an Event of Default under Section 7.01(h) or (i) of the Credit Agreement has occurred and is continuing): 
(A)    all rights of such Grantor to exercise or refrain from exercising the voting and other consensual rights which it would otherwise be entitled to exercise pursuant hereto shall cease and all such rights shall thereupon become vested in the Collateral Agent who shall thereupon have the sole right to exercise or refrain from exercising such voting and other consensual rights; and

(B)    in order to permit the Collateral Agent to exercise the voting and other consensual rights which it may be entitled to exercise pursuant hereto and to receive all dividends and other distributions which it may be entitled to receive hereunder: (y) such Grantor shall promptly execute and deliver (or cause to be executed and delivered) to the Collateral Agent all proxies, dividend payment orders and other instruments as the Collateral Agent may from time to time reasonably request and (z) such Grantor acknowledges that the Collateral Agent may utilize the power of attorney set forth in Section 6.1.

(d)    Certain Permitted Actions to Protect Investment Related Property.
In addition to the foregoing, if any issuer of any Investment Related Property constituting Collateral (which Investment Related Property has a value in excess of $500,000 individually or $1,000,000 in the aggregate) is located in a jurisdiction outside of the United States, each Grantor shall promptly notify the Collateral Agent and the Administrative Agent thereof and take, upon the request of the Collateral Agent or the Administrative Agent, such additional actions, including, without limitation, using commercially reasonable efforts to cause the issuer to register the pledge on its books and records or make such filings or recordings, in each case as may be necessary or, in the reasonable opinion of the Collateral Agent, advisable, under the laws of such issuer’s jurisdiction to insure the validity, perfection and priority of the security interest of the Collateral Agent.  Upon the occurrence and during the continuation of an Event of Default, the Collateral Agent shall have the right, without notice to any Grantor, to transfer all or any portion of such Investment Related Property to its name or the name of its nominee or agent.  In addition, upon the occurrence and during the continuation of an Event of Default, the Collateral Agent shall have the right at any time, without notice to any Grantor, to exchange any certificates or instruments representing any such Investment Related Property for certificates or instruments of smaller or larger denominations.  
4.4.2    Pledged Equity Interests
(a)    Representations and Warranties.  Each Grantor hereby represents and warrants that:
(i)    as of the Closing Date and on each Credit Date, as of the most recent Quarterly Update Date, Schedule 4.4(A) sets forth under the headings “Pledged Stock,” “Pledged LLC 

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Interests,” “Pledged Partnership Interests” and “Pledged Trust Interests,” respectively, all of the Pledged Stock, Pledged LLC Interests, Pledged Partnership Interests and Pledged Trust Interests owned by any Grantor and such Pledged Equity Interests constitute the percentage of issued and outstanding shares of stock, percentage of membership interests, percentage of partnership interests or percentage of beneficial interest of the respective issuers thereof indicated on such Schedule 4.4(A);
(ii)    it is the record and beneficial owner of the Pledged Equity Interests free of all Liens other than Liens created by the Loan Documents and other Permitted Liens described in clauses (b), (s), (x) and (bb) of Section 6.02 of the Credit Agreement; and
(iii)    without limiting the generality of Section 4.1(a)(v), but subject to Section 11.4 and the exceptions contained in Section 4.1(a)(v), no consent of any Person (other than has already been obtained) including any other general or limited partner, any other member of a limited liability company, any other shareholder or any other trust beneficiary is necessary in connection with the creation, perfection or first priority status of the security interest of the Collateral Agent in any Pledged Equity Interests included in the Collateral or the exercise by the Collateral Agent of the voting or other rights provided for in this Agreement or the exercise of remedies in respect thereof.
(b)    Covenants and Agreements.  Each Grantor hereby covenants and agrees that:
(i)    without the prior written consent of the Collateral Agent or the Administrative Agent, it shall not vote to enable or take any other action to, except as permitted by the Credit Agreement and the other Loan Documents, amend or terminate any partnership agreement, limited liability company agreement, certificate of incorporation, by-laws or other organizational documents in any way that adversely affects the validity, perfection or priority of the Collateral Agent’s security interest;
(ii)    in the event that any Pledged Partnership Interests or Pledged LLC Interests included in the Collateral which are not securities (for purposes of the UCC) on the date hereof become treated as securities for purposes of the UCC, the applicable Grantor shall promptly (A) notify the Collateral Agent and the Administrative Agent in writing of such treatment and (B) take all steps necessary or, in the reasonable opinion of the Collateral Agent upon written notice to such Grantor, advisable to establish the Collateral Agent’s “control” (for purposes of the UCC) of such Pledged Partnership Interests or Pledged LLC Interests, as applicable; and
(iii)    each Grantor consents to the grant by each other Grantor of a security interest in all Investment Related Property included in the Collateral to the Collateral Agent and, without limiting the foregoing, consents to the transfer of any Pledged Partnership Interest 

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and any Pledged LLC Interest to the Collateral Agent or its nominee in accordance with this Agreement following the occurrence and during the continuation of an Event of Default and to the substitution of the Collateral Agent or its nominee as a partner in any partnership or as a member in any limited liability company with all the rights and powers (including economic, voting and control rights) related thereto.
4.4.3    Pledged Debt
Each Grantor hereby represents and warrants that (a) as of the Closing Date and each Credit Date, as of the immediately preceding Quarterly Update Date, Schedule 4.4(C) sets forth under the heading “Pledged Debt” all of the Pledged Debt with a value in excess of $500,000 individually or $2,000,000 in the aggregate owned by any Grantor (excluding any Indebtedness owed by gaming patrons) and (b) all of such Pledged Debt issued by an Affiliate of such Grantor is the legal, valid and binding obligation of the issuers thereof and, except as set forth on Schedule 4.4(C), is not in default in any material respect.
4.4.4    Investment Accounts
(a)    Representations and Warranties. Each Grantor hereby represents and warrants that:
(i)    as of the Closing Date and each Credit Date, as of the immediately preceding Quarterly Update Date, Schedules 4.4(D) and (E) sets forth under the headings “Securities Accounts” and “Commodities Accounts,” respectively, all of the Securities Accounts and Commodities Accounts in which each Grantor has an interest;
(ii)    each Grantor is the sole entitlement holder of each of its Securities Accounts and Commodities Accounts, and such Grantor has not consented to, and is not otherwise aware of, any Person (other than the Collateral Agent pursuant hereto, the Disbursement Agent and the Revolving Collateral Agent pursuant to the Revolving Facility Documents) having “control” (within the meanings of Sections 8-106 and 9-106 of the UCC) over, or any other interest in, any such Securities Account or Commodities Account or securities or other property credited thereto;
(iii)    as of the Closing Date and each Credit Date, as of the immediately preceding Quarterly Update Date, Schedule 4.4(F) sets forth under the headings “Deposit Accounts” all of the Deposit Accounts in which each Grantor has an interest;
(iv)    each Grantor is the sole account holder of each of its Deposit Accounts (other than Excluded Accounts) and such Grantor has not consented to, and is not otherwise aware of, any Person (other than the Collateral Agent pursuant hereto, the Disbursement Agent, any Person as a result of a Permitted Lien and the applicable depository institution) having 

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“control” (within the meaning of Section 9-104 of the UCC) over, or any other interest in, any such Deposit Account or any money or other property deposited therein; and
(v)    each Grantor has taken all actions (within the time requirements specified by the Credit Agreement and the other Loan Documents to the extent expressly provided therein) necessary, including those specified in Section 4.4.4(b), to: (A) establish the Collateral Agent’s “control” (within the meanings of Sections 8-106 and 9-106 of the UCC) over any portion of the Investment Related Property constituting Certificated Securities, Uncertificated Securities, Securities Accounts, Securities Entitlements or Commodities Accounts (each as defined in the UCC); (B) establish the Collateral Agent’s “control” (within the meaning of Section 9-104 of the UCC) over all Deposit Accounts (other than Excluded Accounts); and (C) deliver all Instruments to the Collateral Agent, in each case except to the extent constituting Excluded Collateral.
(b)    Delivery and Control.
With respect to any Investment Related Property consisting of Securities Accounts or Securities Entitlements (other than Excluded Accounts), each Grantor shall cause the securities intermediary maintaining such Securities Account or Securities Entitlement to enter into an agreement acceptable to the securities intermediary, the Administrative Agent and the Collateral Agent, which is effective to establish “control” under the UCC pursuant to which it shall agree to comply with the Collateral Agent’s “entitlement orders” without further consent by such Grantor.  With respect to any Investment Related Property that is a Deposit Account (other than Excluded Accounts), each Grantor shall cause the depositary institution maintaining such account to enter into an agreement reasonably acceptable to the depositary institution, the Administrative Agent and the Collateral Agent, which is effective to establish “control” under the UCC, pursuant to which the Collateral Agent shall have “control” (within the meaning of Section 9-104 of the UCC) over such Deposit Account.  Each Grantor shall have entered into such control agreement or agreements with respect to: (A) any Securities Accounts, Securities Entitlements or Deposit Accounts (other than Excluded Accounts) that exist on the Closing Date, as of or prior to the Closing Date and (B) any Securities Accounts, Securities Entitlements or Deposit Accounts (other than Excluded Accounts) that are created or acquired after the Closing Date, as of or prior to the deposit or transfer of any such Securities Entitlements or funds, whether constituting moneys or investments, into such Securities Accounts or Deposit Accounts.  In addition to the above exclusions for Excluded Accounts, the provisions of this Section 4.4.4(b) shall not apply with respect to any Investment Related Property to the extent constituting Excluded Collateral.  In the case of any Investment Account, so long as no Event of Default has occurred and is continuing, the Collateral Agent agrees, subject to the terms of the Disbursement Agreement, the Credit Agreement and the other Loan Documents, that it shall not give any orders or instructions to any applicable depositary institution or securities intermediary concerning or directing the disposition, transfer, withdrawal, disbursement or investment of any funds in or credited to such Investment Account.

4.5    [Reserved].   

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4.6    Letter-of-Credit Rights.
(a)    Representations and Warranties.  Each Grantor hereby represents and warrants that:
(i)    as of the Closing Date and each Credit Date, as of the immediately preceding Quarterly Update Date, all letters of credit in excess of $500,000 to which such Grantor has Letter-of-Credit Rights, or pursuant to which such Grantor is the beneficiary, are listed on Schedule 4.6; and
(ii)    it has used commercially reasonable efforts to obtain the consent of each issuer of any letter of credit listed on Schedule 4.6 in excess of $500,000 to the assignment of the proceeds of such letter of credit to the Collateral Agent.
(b)    Covenants and Agreements.  Each Grantor hereby covenants and agrees that with respect to any letter of credit to which such Grantor has Letter-of-Credit Rights or pursuant to which such Grantor is the beneficiary, in excess of $500,000 hereafter arising it shall use commercially reasonable efforts to obtain the consent of the issuer thereof to the assignment of the proceeds of the letter of credit to the Collateral Agent and shall deliver to the Collateral Agent and the Administrative Agent a completed Pledge Supplement.  

4.7    Intellectual Property.  
(a)    Representations and Warranties.  Each Grantor hereby represents and warrants that, as of the Closing Date and each Credit Date, as of the immediately preceding Quarterly Update Date:  
(i)    Schedule 4.7 sets forth a true and complete list of (A) all United States registrations of and applications for Patents, Trademarks, Copyrights and Domain Names owned by each Grantor and (B) all Intellectual Property Licenses material to the business of such Grantor (other than such licenses related to gaming machines and other equipment), excluding licenses to commercially available off-the-shelf software;
(ii)    it is the owner of the entire right, title, and interest in and to all Intellectual Property listed under its name on Schedule 4.7 and owns or has the valid right to use all other Intellectual Property used in or necessary to conduct its business, free and clear of all Liens, except for Permitted Liens and except to the extent not reasonably likely to have a Material Adverse Effect; 
(iii)    except to the extent not reasonably likely to have a Material Adverse Effect, all Intellectual Property set forth on Schedule 4.7 is subsisting and has not been adjudged invalid or unenforceable, in whole or in part, and such Grantor has performed all acts and 

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has paid all renewal, maintenance, and other fees and taxes required to maintain the Intellectual Property set forth on Schedule 4.7 in full force and effect;
(iv)    except to the extent not reasonably likely to have a Material Adverse Effect, (A) all Intellectual Property set forth on Schedule 4.7 is valid and enforceable, (B) no holding, decision, or judgment has been rendered in any action or proceeding before any court or administrative authority challenging the validity of, such Grantor’s right to register, or such Grantor’s rights to own or use any Intellectual Property set forth on Schedule 4.7 and (C) no such action or proceeding is pending or, to such Grantor’s knowledge, threatened;
(v)    except to the extent not reasonably likely to have a Material Adverse Effect, such Grantor has been using appropriate statutory notice of registration in connection with its use of registered Trademarks, proper marking practices in connection with the use of Patents, and appropriate notice of copyright in connection with the publication of Copyrights, in each case, with respect to the Trademarks, Patents and Copyrights owned by such Grantor;
(vi)    except to the extent not reasonably likely to have a Material Adverse Effect, (A) the conduct of such Grantor’s business does not infringe upon or otherwise violate any Trademark, Patent, Copyright, Trade Secret or other Intellectual Property right owned by a third party and (B) no claim has been made that the use by such Grantor of any Intellectual Property owned or used by such Grantor violates the Intellectual Property rights of any third party; 
(vii)    except to the extent not reasonably likely to have a Material Adverse Effect, to such Grantor’s knowledge, no third party is infringing upon or otherwise violating any rights in any Intellectual Property owned or used by such Grantor; and
(viii)    except to the extent not reasonably likely to have a Material Adverse Effect, no settlement or consents, covenants not to sue, nonassertion assurances, or releases have been entered into by such Grantor or to which such Grantor is bound that adversely affect such Grantor’s rights to own or use any Intellectual Property.
(b)    Covenants and Agreements.  Each Grantor hereby covenants and agrees as follows:
(i)    except to the extent not material to its business as determined in good faith in such Grantor’s reasonable business judgment, it shall not do any act or omit to do any act whereby any of the material Intellectual Property owned by such Grantor may lapse, or become abandoned, dedicated to the public, or unenforceable;
(ii)    it shall take, at its own expense, commercially reasonable steps in the United States Patent and Trademark Office, the United States Copyright Office, or any foreign 

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counterpart of the foregoing, to pursue any application and maintain any registration of each Trademark, Patent, and Copyright owned by such Grantor and material to its business as determined in good faith in such Grantor’s reasonable business judgment which is now or shall become included in the Intellectual Property included in the Collateral including, but not limited to, those items on Schedule 4.7(A), (C) and (E);
(iii)    to the extent determined in good faith in such Grantor’s reasonable business judgment that any Intellectual Property owned by or exclusively licensed to such Grantor that is material to its business is infringed, misappropriated, or diluted by a third party, such Grantor shall take commercially reasonable actions to protect its rights in such Intellectual Property including, but not limited to, the initiation of a suit for injunctive relief and to recover damages, as applicable;
(iv)     it shall report to the Collateral Agent and the Administrative Agent (A) the filing of any application to register any Intellectual Property material to the conduct of its business with the United States Patent and Trademark Office or the United States Copyright Office (whether such application is filed by such Grantor or through any agent, employee, licensee, or designee thereof), (B) the acquisition of any such application or registration by purchase or assignment, and (C) the registration of any such Intellectual Property by any such office, in each case by executing and delivering to the Collateral Agent and the Administrative Agent a completed Pledge Supplement in each case of the preceding clauses (A), (B) and (C), no later than the Quarterly Update Date for the Fiscal Quarter during which such filing or registration was made; and
(v)    it shall within a reasonable period of time upon the reasonable request of the Collateral Agent, execute and deliver to the Collateral Agent and the Administrative Agent at such Grantor’s expense any document required to acknowledge, confirm, register, record, or perfect the Collateral Agent’s interest in any part of the material Intellectual Property registered in the United States, whether now owned or hereafter acquired.

4.8    Commercial Tort Claims.
(a)    Representations and Warranties.  Each Grantor hereby represents and warrants, on the Closing Date, that Schedule 4.8 sets forth all Commercial Tort Claims of each Grantor in excess of $500,000 individually and $2,000,000 in the aggregate (across all Grantors); and
(b)    Covenants and Agreements.  Each Grantor hereby covenants and agrees that with respect to any Commercial Tort Claim of such Grantor hereafter arising it shall deliver to the Collateral Agent and the Administrative Agent a completed Pledge Supplement identifying such new Commercial Tort Claims in excess of $500,000 individually and $2,000,000 in the aggregate 

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(across all Grantors) no later than the Quarterly Update Date for the Fiscal Quarter during which such Grantor became aware of such Commercial Tort Claim.

4.9    Perfection of De Minimis Collateral.  Notwithstanding anything to the contrary in this Section 4, the Grantors shall not be required to perfect any security interest granted to the Collateral Agent (including with respect to vehicles) as to which the Collateral Agent and the Administrative Agent have determined in writing in their sole discretion that the collateral value thereof is insufficient to justify the difficulty, time and/or expense of obtaining a perfected security interest therein.  

SECTION 5.    ACCESS; RIGHT OF INSPECTION AND FURTHER ASSURANCES; ADDITIONAL GRANTORS.

5.1    Further Assurances.     
(a)    Each Grantor agrees that from time to time, at the expense of such Grantor, it shall promptly execute and deliver all further instruments and documents, and take all further action, that may be necessary or, in the reasonable opinion of the Collateral Agent upon written notice to such Grantor, desirable, or that the Collateral Agent or the Administrative Agent may reasonably request in writing, in order to create and/or maintain the validity, perfection or priority of and protect any security interest granted or intended to be granted hereby or to enable the Collateral Agent during the continuance of an Event of Default to exercise and enforce its rights and remedies hereunder with respect to any Collateral.  Without limiting the generality of the foregoing, each Grantor shall:
(i)    file such financing or continuation statements, or amendments thereto, and execute and deliver such other agreements, instruments, endorsements, powers of attorney or notices, as may be necessary or, in the reasonable opinion of the Collateral Agent upon notice to such Grantor, desirable, or as the Collateral Agent or the Administrative Agent may reasonably request, in order to perfect and preserve the security interests granted or purported to be granted hereby;
(ii)    take all actions commercially reasonable to ensure the recordation of appropriate evidence of the liens and security interest granted hereunder in the Intellectual Property included in the Collateral with the United States Patent and Trademark Office or the United States Copyright Office; and for the avoidance of doubt, nothing in this Agreement shall require any Grantor to make any filings or take any other actions to record or perfect the Collateral Agent’s interest in any part of the Intellectual Property included in the Collateral outside of the United States;  
(iii)    at any reasonable time, upon written request by the Collateral Agent or the Administrative Agent, allow inspection of the Collateral by the Collateral Agent or the 

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Administrative Agent, or persons designated by the Collateral Agent or the Administrative Agent in each case to the extent permitted by (and subject to the limitations set forth in) the Credit Agreement; and
(iv)    at the Collateral Agent’s or the Administrative Agent’s reasonable request, appear in and use commercially reasonable efforts to defend any action or proceeding that may adversely affect such Grantor’s title to or the Collateral Agent’s security interest in all or any part of the Collateral.  
(b)    Each Grantor hereby authorizes the Collateral Agent and the Administrative Agent to file a Record or Records, including, without limitation, financing or continuation statements, and amendments thereto, in any jurisdictions and with any filing offices as the Collateral Agent or the Administrative Agent may determine, in its sole discretion, are necessary or advisable to perfect the security interest granted to the Collateral Agent herein.  Such financing statements may describe the Collateral in the same manner as described herein or may contain an indication or description of collateral that describes such property in any other manner as the Collateral Agent or the Administrative Agent may determine, in its sole discretion, is necessary, advisable or prudent to ensure the perfection of the security interest in the Collateral granted to the Collateral Agent herein, including, without limitation, describing such property as “all assets” or “all personal property, whether now owned or hereafter acquired.”  Each Grantor shall furnish to the Collateral Agent and the Administrative Agent from time to time (but not more than twice each year) statements and schedules further identifying and describing the Collateral (including disclosing any new applications to register with the United States Patent and Trademark Office or the United States Copyright Office any Intellectual Property included in the Collateral) and such other reports in connection with the Collateral as the Collateral Agent or the Administrative Agent may reasonably request, all in reasonable detail.  Notwithstanding the foregoing or any other term or provision herein, the Collateral Agent shall be under no obligation whatsoever to prepare or file any financing or confirmation statements or record any documents or instruments in any public office at any time or times or otherwise to perfect or maintain the perfection of any security interest in the Collateral.

5.2    Additional Grantors.  From time to time subsequent to the date hereof, additional Persons may become parties hereto as additional Grantors (each, an “Additional Grantor”), by executing a Joinder Agreement, together with a Pledge Supplement and any other attachments, all in form and substance reasonably satisfactory to the Collateral Agent and the Administrative Agent.  Upon delivery of any such Joinder Agreement to the Collateral Agent and the Administrative Agent, notice of which is hereby waived by the other Grantors, each Additional Grantor shall be a Grantor and shall be as fully a party hereto as if such Additional Grantor were an original signatory hereto.  Each Grantor expressly agrees that its obligations arising hereunder shall not be affected or diminished by the addition or release of any other Grantor hereunder, nor by any election of Collateral Agent or the Administrative Agent not to cause any other Subsidiary of the Borrower to become an 

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Additional Grantor hereunder.  This Agreement shall be fully effective as to each Grantor that is or becomes a party hereto regardless of whether any other Person becomes or fails to become or ceases to be a Grantor hereunder.

SECTION 6.    COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT.

6.1    Power of Attorney.  Subject to Section 11.4, until the Termination Date, each Grantor hereby irrevocably appoints the Collateral Agent (such appointment being coupled with an interest) as such Grantor’s attorney-in-fact, with full authority in the place and stead of such Grantor and in the name of such Grantor, the Collateral Agent or otherwise, from time to time in the Collateral Agent’s discretion to take any action and to execute any instrument that the Collateral Agent may deem reasonably necessary or, upon notice to such Grantor, advisable to accomplish the purposes of this Agreement, including, without limitation, the following: 
(a)    upon the occurrence and during the continuance of any Event of Default, to obtain and/or adjust insurance required to be maintained by such Grantor or paid to the Collateral Agent pursuant to the Loan Documents; 
(b)    upon the occurrence and during the continuance of any Event of Default, to ask for, demand, collect, sue for, recover, compound, receive and give acquittance and receipts for moneys due or to become due under or in respect of any of the Collateral; 
(c)    upon the occurrence and during the continuance of any Event of Default, to receive, endorse and collect any drafts or other Instruments, Documents and Chattel Paper in connection with clause (b) above; 
(d)    upon the occurrence and during the continuance of any Event of Default, to file any claims or take any action or institute any proceedings that the Collateral Agent may deem necessary or desirable for the collection of any of the Collateral or otherwise to enforce the rights of the Collateral Agent with respect to any of the Collateral; 
(e)    to prepare and file any UCC financing statements against such Grantor as debtor;
(f)    upon the occurrence and during the continuance of any Event of Default, to prepare, sign, and file any document which may be required by the United States Patent and Trademark Office, the United States Copyright Office or similar registrar in order to effect an absolute assignment of all right, title and interest in all registered Intellectual Property and any application for all such registrations, and record the same;
(g)    to prepare for recordation in the United States Patent and Trademark Office or the United States Copyright Office (or any other intellectual property registry where recordation is, or 

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may become, legally required under applicable law to confirm, register, record, or perfect the Collateral Agent’s interest in any part of the Intellectual Property included in the Collateral) appropriate evidence of the lien and security interest granted herein in the Intellectual Property in the name of such Grantor as debtor;
(h)    upon the occurrence and during the continuance of any Event of Default, to take or cause to be taken all actions necessary to perform or comply or cause performance or compliance with the terms of this Agreement, including, without limitation, access to pay or discharge taxes or Liens (other than Permitted Liens) levied or placed upon or threatened against the Collateral, the legality or validity thereof and the amounts necessary to discharge the same to be determined by the Collateral Agent in its sole discretion, any such payments made by the Collateral Agent to become obligations of such Grantor to the Collateral Agent, due and payable immediately without demand; 
(i)    upon the occurrence and during the continuance of any Event of Default, generally to sell, transfer, pledge, make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely as though the Collateral Agent were the absolute owner thereof for all purposes; and 
(j)    to do, at the Collateral Agent’s option and such Grantor’s expense, at any time or from time to time, all acts and things that the Collateral Agent deems reasonably necessary to protect, preserve or, upon the occurrence and during the continuation of any Event of Default, realize upon the Collateral and the Collateral Agent’s security interest therein in order to effect the intent of this Agreement.

6.2    No Duty on the Part of Collateral Agent or Secured Parties.  The powers conferred on the Collateral Agent hereunder are solely to protect the interests of the Secured Parties in the Collateral and shall not impose any duty upon the Collateral Agent or any Secured Party to exercise any such powers.  The Collateral Agent and the Secured Parties shall be accountable only for amounts that they actually receive as a result of the exercise of such powers, and neither they nor any of their officers, directors, employees or agents shall be responsible to any Grantor for any act or failure to act hereunder, except for their own gross negligence or willful misconduct (as determined by a court of competent jurisdiction by final and nonappealable judgment).

SECTION 7.    REMEDIES.

7.1    Generally.  
(a)    If any Event of Default shall have occurred and be continuing, subject to Section 11.4, the Collateral Agent may exercise in respect of the Collateral, in addition to all other rights and remedies provided for herein or otherwise available to it at law or in equity, all the rights and 

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remedies of the Collateral Agent on default under the UCC (whether or not the UCC applies to the affected Collateral) to collect, enforce or satisfy any Secured Obligations then owing, whether by acceleration or otherwise, and also may pursue any of the following separately, successively or simultaneously:
(i)    require any Grantor to, and each such Grantor to the same extent hereby agrees that it shall, at its expense and promptly upon request of the Collateral Agent forthwith, assemble all or part of the Collateral as directed by the Collateral Agent and make it available to the Collateral Agent at a place to be designated by the Collateral Agent that is reasonably convenient to both parties; 
(ii)    enter onto the property where any Collateral is located and take possession thereof with or without judicial process;
(iii)    prior to the disposition of the Collateral, store, process, repair or recondition the Collateral or otherwise prepare the Collateral for disposition in any manner to the extent the Collateral Agent deems appropriate; and
(iv)    without notice except as specified below or under the UCC, sell, assign, lease, license (on an exclusive or nonexclusive basis) or otherwise dispose of the Collateral or any part thereof in one or more parcels at public or private sale, at any of the Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery, at such time or times and at such price or prices and upon such other terms as the Collateral Agent may deem commercially reasonable.
(b)    The Collateral Agent or any Secured Party may be the purchaser of any or all of the Collateral at any public or private sale (to the extent the portion of the Collateral being privately sold is of a kind that is customarily sold on a recognized market or the subject of widely distributed standard price quotations) in accordance with the UCC and the Collateral Agent, as collateral agent under the Credit Agreement for the benefit of the Secured Parties shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral sold at any such sale made in accordance with the UCC, to use and apply any of the Secured Obligations as a credit on account of the purchase price for any Collateral payable by the Collateral Agent at such sale.  Each purchaser at any such sale shall hold the property sold absolutely free from any claim or right on the part of any Grantor, and each Grantor hereby waives (to the extent permitted by applicable law) all rights of redemption, stay and/or appraisal which it now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted.  Each Grantor agrees that, to the extent notice of sale shall be required by law or this Agreement, at least ten (10) days’ notice to such Grantor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification.  The 

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Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given.  The Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.  Each Grantor agrees that it would not be commercially unreasonable for the Collateral Agent to dispose of the Collateral or any portion thereof by using Internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of assets.  Each Grantor hereby waives any claims against the Collateral Agent arising by reason of the fact that the price at which any Collateral may have been sold at such a private sale was less than the price which might have been obtained at a public sale, even if the Collateral Agent accepts the first offer received and does not offer such Collateral to more than one offeree so long as such process is commercially reasonable.  If the proceeds of any sale or other disposition of the Collateral are insufficient to pay all the Secured Obligations, each Grantor shall be liable for the deficiency and the fees of any attorneys employed by the Collateral Agent to collect such deficiency.  Each Grantor further agrees that a breach of any of the covenants contained in this Section 7.1(b) will cause irreparable injury to the Collateral Agent, that the Collateral Agent has no adequate remedy at law in respect of such breach and, as a consequence, that each and every covenant contained in this Section shall be specifically enforceable against such Grantor, and such Grantor hereby waives and agrees not to assert any defenses (other than defense of payment or performance) against an action for specific performance of such covenants except for a defense that no default has occurred giving rise to the Secured Obligations becoming due and payable prior to their stated maturities.  Nothing in this Section 7.1(b) shall in any way alter the rights of the Collateral Agent hereunder. 
(c)    The Collateral Agent may sell the Collateral without giving any warranties as to the Collateral.  The Collateral Agent may specifically disclaim or modify any warranties of title or the like.  This procedure will not be considered to adversely affect the commercial reasonableness of any sale of the Collateral.
(d)    The Collateral Agent shall have no obligation to marshal any of the Collateral. 
(e)    Nothing in this Agreement waives any duty of the Collateral Agent or any right of the Grantors which cannot be waived under Section 9-602 of the UCC or other mandatory provisions of applicable law.
(f)    In furtherance of the foregoing, in the event of a foreclosure, deed in lieu of foreclosure or other similar transfer of the Project to the Collateral Agent or its designee, the Loan Parties shall, to the extent required by the Collateral Agent, use commercially reasonable efforts to assist the Collateral Agent or its designee in obtaining all Gaming Licenses and other governmental approvals necessary to conduct gaming operations at the Project.  Following a foreclosure, deed in lieu of foreclosure or other similar transfer of the Project to the Collateral Agent or its designee, 

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subject to receipt of requisite approvals from any applicable Gaming Authority, the Loan Parties shall use commercially reasonable efforts to assist with the transition of the gaming at the Project to any new gaming operator (including, without limitation, the Collateral Agent or its designee).  

7.2    Application of Proceeds.  All proceeds received by the Collateral Agent in respect of any sale, any collection from, or other realization upon all or any part of the Collateral and (to the extent that the application thereof is not otherwise provided for in any other Loan Document) all other cash or proceeds received by the Collateral Agent for the benefit of the Secured Parties shall be applied in full or in part by the Collateral Agent or the Administrative Agent against the Secured Obligations in accordance with Section 7.02 of the Credit Agreement.  For the avoidance of doubt, notwithstanding any other provision of any Loan Document to the contrary, no such payment received from any Grantor (other than the Borrower) that is not a Qualified ECP Guarantor shall be applied by the Administrative Agent or any other Secured Party to the payment of any Excluded Swap Obligations.

7.3    Sales on Credit.  If the Collateral Agent sells any of the Collateral upon credit, the applicable Grantor will be credited only with payments actually made by purchaser and received by the Collateral Agent and applied to indebtedness of the purchaser.  In the event the purchaser fails to pay for the Collateral, the Collateral Agent may resell the Collateral and such Grantor shall be credited with cash proceeds of the sale actually received by the Collateral Agent pursuant to the application of such proceeds under Section 7.02 of the Credit Agreement.

7.4    Investment Accounts.  If any Event of Default shall have occurred and be continuing, the Collateral Agent may apply the balance (or portion thereof) from any Investment Account or instruct the bank or other financial institution at which any Investment Account is maintained to pay the balance (or portion thereof) of any Investment Account to or for the benefit of the Collateral Agent. 

7.5    Investment Related Property.  Each Grantor recognizes that, by reason of certain prohibitions contained in the Securities Act and applicable state securities laws, the Collateral Agent may be compelled, with respect to any sale of all or any part of the Investment Related Property conducted without prior registration or qualification of such Investment Related Property under the Securities Act and/or such state securities laws, to limit purchasers to those who will agree, among other things, to acquire the Investment Related Property for their own account, for investment and not with a view to the distribution or resale thereof.  Each Grantor acknowledges that any such private sale may be at prices and on terms less favorable than those obtainable through a public sale without such restrictions (including a public offering made pursuant to a registration statement under the Securities Act) and, notwithstanding such circumstances, to the extent permitted by applicable law, each Grantor agrees that any such private sale, to the extent permitted by applicable law, shall be deemed to have been made in a commercially reasonable manner and that the Collateral 

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Agent shall have no obligation to engage in public sales and no obligation to delay the sale of any Investment Related Property for the period of time necessary to permit the issuer thereof to register it for a form of public sale requiring registration under the Securities Act or under applicable state securities laws, even if such issuer would, or should, agree to so register it.  If the Collateral Agent determines to exercise its right to sell any or all of the Investment Related Property after the occurrence and during the continuation of an Event of Default, upon written request, each Grantor shall and shall use commercially reasonable efforts to cause each issuer of any Pledged Stock to be sold hereunder, each partnership and each limited liability company from time to time to furnish to the Collateral Agent all such information as the Collateral Agent may request in order to determine the number and nature of interest, shares or other instruments included in the Investment Related Property which may be sold by the Collateral Agent in exempt transactions under the Securities Act and the rules and regulations of the Securities and Exchange Commission thereunder, as the same are from time to time in effect. 

7.6    Intellectual Property.  
(a)    Anything contained herein to the contrary notwithstanding, upon the occurrence and during the continuation of an Event of Default: 
(i)    the Collateral Agent shall have the right (but not the obligation) to bring suit or otherwise commence any action or proceeding in the name of any Grantor, the Collateral Agent or otherwise, in the Collateral Agent’s sole discretion, to enforce any Intellectual Property that constitutes Collateral, in which event such Grantor shall, at the request of the Collateral Agent, do any and all lawful acts and execute any and all documents required by the Collateral Agent in aid of such enforcement, and, to the extent that the Collateral Agent shall elect not to bring suit to enforce any Intellectual Property that constitutes Collateral as provided in this Section 7.6, each Grantor agrees to use reasonable measures, whether by action, suit, proceeding or otherwise, to prevent the infringement or other violation of any of such Grantor’s rights in the Intellectual Property that constitutes Collateral by others;
(ii)    upon written demand from the Collateral Agent or exercise of its rights under Section 6.1(f), each Grantor shall grant, assign, convey or otherwise transfer to the Collateral Agent or the Collateral Agent’s designee all of such Grantor’s right, title and interest in and to the Intellectual Property that constitutes Collateral and shall execute and deliver to the Collateral Agent such documents as are necessary or appropriate to carry out the intent and purposes of this Agreement which may include the right of Collateral Agent to (i) take and use or sell the Intellectual Property; and (ii) take and use or sell the goodwill of such Grantor’s business symbolized by the Trademarks and the right to carry on the business and use the assets of such Grantor in connection with which the Trademarks or Domain Names have been used;

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(iii)    each Grantor agrees that such an assignment and/or recording shall be applied to reduce the Secured Obligations outstanding only to the extent that the Collateral Agent (or any Secured Party) receives cash proceeds in respect of the sale of, or other realization upon, the Intellectual Property that constitutes Collateral; and
(iv)    upon any such assignment, each Grantor shall execute such further documents that the Collateral Agent may reasonably request to further confirm this and to transfer ownership of Intellectual Property and registrations and any pending applications in the United States Copyright Office, United States Patent and Trademark Office, equivalent office in a state of the United States or applicable Domain Name registrar to the Collateral Agent; and
(v)    the Collateral Agent shall have the right to notify, or require each Grantor to notify, any obligors with respect to amounts due or to become due to such Grantor in respect of the Intellectual Property that constitutes Collateral, of the existence of the security interest created herein, to direct such obligors to make payment of all such amounts directly to the Collateral Agent, and, upon such notification and at the expense of such Grantor, to enforce collection of any such amounts and to adjust, settle or compromise the amount or payment thereof, in the same manner and to the same extent as such Grantor might have done.
(b)    If (i) an Event of Default shall have occurred and, by reason of cure, waiver, modification, amendment or otherwise, no longer be continuing; (ii) no other Event of Default shall have occurred and be continuing; (iii) an assignment or other transfer to the Collateral Agent of any rights, title and interests in and to the Intellectual Property that constitutes Collateral shall have been previously made; and (iv) the Secured Obligations shall not have become immediately due and payable, then upon the written request of any Grantor, the Collateral Agent shall promptly execute and deliver to such Grantor, at such Grantor’s sole cost and expense, such assignments or other transfer documents as may be necessary to reassign to such Grantor any such rights, title and interests as may have been assigned to the Collateral Agent as aforesaid, subject to any disposition thereof that may have been made by the Collateral Agent; provided that, after giving effect to such reassignment, the Collateral Agent’s security interest granted pursuant hereto, as well as all other rights and remedies of the Collateral Agent granted hereunder, shall continue to be in full force and effect; and provided, further, the rights, title and interests so reassigned shall be free and clear of any other Liens granted by or on behalf of the Collateral Agent and the Secured Parties.
(c)    Solely for the purpose of enabling the Collateral Agent to exercise rights and remedies under this Section 7.6 and at such time as the Collateral Agent shall be lawfully entitled to exercise such rights and remedies, each Grantor hereby grants to the Collateral Agent, to the extent it has the right to do so, an irrevocable, nonexclusive license (exercisable without payment of royalty or other compensation to such Grantor), subject, in the case of Trademarks, to sufficient rights to 

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quality control and inspection in favor of such Grantor to avoid the risk of invalidation of said Trademarks, to use, operate under, license, or sublicense any Intellectual Property that constitutes Collateral now owned or hereafter acquired by such Grantor, and wherever the same may be located.

7.7    Cash Proceeds.  In addition to the rights of the Collateral Agent specified in Section 4.3 with respect to payments of Receivables, during the continuance of an Event of Default and following a Grantor’s receipt of notice from the Collateral Agent of its intention to exercise its rights under this Section 7.7, all proceeds of any Collateral received by any Grantor consisting of cash, checks and other non-cash items (collectively, “Cash Proceeds”) shall be held by such Grantor in trust for the Collateral Agent, segregated from other funds of such Grantor, and shall, forthwith upon receipt by such Grantor, be turned over to the Collateral Agent in the exact form received by such Grantor (duly indorsed by such Grantor to the Collateral Agent, if required) and held by the Collateral Agent in an Investment Account (it being understood that each Grantor agrees to promptly comply with any reasonable request of the Collateral Agent to establish or enter into a Control Agreement with respect to such an Investment Account).  Any Cash Proceeds received by the Collateral Agent (whether from a Grantor or otherwise) may, in the sole discretion of the Collateral Agent, (A) be held by the Collateral Agent for the ratable benefit of the Secured Parties, as collateral security for the Secured Obligations (whether matured or unmatured) and/or (B) be applied then or at any time thereafter by the Collateral Agent against the Secured Obligations then due and owing. 

SECTION 8.    COLLATERAL AGENT.
The Collateral Agent has been appointed to act as Collateral Agent hereunder by the Secured Parties. The Collateral Agent shall be obligated, and shall have the right hereunder, to make demands, to give notices, to exercise or refrain from exercising any rights or remedies, and to take or refrain from taking any action (including, without limitation, the release or substitution of Collateral), solely in accordance with this Agreement and the other Loan Documents.  In furtherance of the foregoing provisions of this Section 8, each Secured Party, by its acceptance of the benefits hereof, agrees that it shall have no right individually to realize upon any of the Collateral hereunder, it being understood and agreed by such Secured Party that all rights and remedies hereunder may be exercised solely by the Collateral Agent for the benefit of the Secured Parties in accordance with the terms of this Section 8. The Collateral Agent may resign or be removed in accordance with Section 8.08 of the Credit Agreement.  After the Collateral Agent’s resignation thereunder as the Collateral Agent, the provisions of this Agreement shall inure to its benefit as to any actions taken or omitted to be taken by it under this Agreement while it was the Collateral Agent hereunder.

SECTION 9.    CONTINUING SECURITY INTEREST; TRANSFER OF LOANS.
This Agreement shall create a continuing security interest in the Collateral and shall remain in full force and effect until the Termination Date and be binding upon each Grantor and its successors and assigns, and inure, together with the rights and remedies of the Collateral Agent hereunder, to the benefit of the Collateral Agent and its successors, transferees and assigns.  No Grantor shall assign or delegate any of its rights or duties hereunder without the prior written consent 

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of the Administrative Agent (acting with the consent of the requisite percentage of Lenders pursuant to the Credit Agreement), and any attempted assignment or delegation by a Grantor without such consent shall be null and void.  Without limiting the generality of the foregoing, but subject to the terms of the Credit Agreement and the other Loan Documents, any Lender may assign or otherwise transfer any Loans held by it to any other Person, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to the Lenders herein or otherwise.  Upon the Termination Date, the security interest granted hereby shall automatically terminate hereunder and of record and all rights to the Collateral shall revert to the applicable Grantors.  Upon any disposition by the Borrower or any other Loan Party of any assets or property that is permitted under the Loan Documents, the security interest granted hereby in such assets or property shall automatically terminate hereunder and of record and all rights to the Collateral to the extent of such assets or property shall revert to the applicable Grantors.  Upon any such termination in the prior two sentences, the Collateral Agent shall, at the Grantors’ expense (and without recourse to, and without any representation or warranty by, the Collateral Agent), execute and deliver to any Grantor such documents as such Grantor shall reasonably request to evidence such termination and promptly return any applicable possessory Collateral to the applicable Grantors.

SECTION 10.    STANDARD OF CARE; COLLATERAL AGENT MAY PERFORM.
The powers conferred on the Collateral Agent hereunder are solely to protect its interest in the Collateral and shall not impose any duty upon it to exercise any such powers.  Except for the exercise of reasonable care in the custody of any Collateral in its possession and the accounting for moneys actually received by it hereunder, the Collateral Agent shall have no duty as to any Collateral or as to the taking of any necessary steps to preserve rights against prior parties or any other rights pertaining to any Collateral.  The Collateral Agent shall be deemed to have exercised reasonable care in the custody and preservation of Collateral in its possession if such Collateral is accorded treatment reasonably equal to that which the Collateral Agent accords its own property.  Neither the Collateral Agent nor any of its directors, officers, employees or agents shall be liable for failure to demand, collect or realize upon all or any part of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of any Grantor or otherwise.  If an Event of Default occurs and is continuing and any Grantor fails to perform any agreement contained herein, the Collateral Agent may itself perform, or cause performance of, such agreement, and the expenses of the Collateral Agent incurred in connection therewith shall be payable by each Grantor under Section 9.05 of the Credit Agreement and any analogous provision in any other Loan Document.

SECTION 11.    MISCELLANEOUS. 

11.1    General.  Any notice, request or demand required or permitted to be given under this Agreement shall be given in accordance with Section 9.01 of the Credit Agreement; provided, that any such notice, request or demand to a Grantor shall be addressed to such Grantor at its notice address set forth on Schedule 4.1.  No failure or delay on the part of the Collateral Agent in the exercise of any power, right or privilege hereunder or under any other Loan Document shall impair such power, right or privilege or be construed to be a waiver of any default or acquiescence therein, 

36

	
			
	 
	 
	 

nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other power, right or privilege.  All rights and remedies existing under this Agreement and the other Loan Documents are cumulative to, and not exclusive of, any rights or remedies otherwise available.  In case any provision in or obligation under this Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.  All covenants hereunder shall be given independent effect so that if a particular action or condition is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists.  This Agreement shall be binding upon and inure to the benefit of the Collateral Agent (for itself and for the benefit of the other Secured Parties) and the Grantors and their respective successors and assigns.  No Grantor shall, without the prior written consent of the Administrative Agent given in accordance with the Credit Agreement and the other Loan Documents, assign any right, duty or obligation hereunder.  This Agreement and the other Loan Documents embody the entire agreement and understanding between the Grantors, the Administrative Agent and the Collateral Agent and supersede all prior agreements and understandings between such parties relating to the subject matter hereof and thereof.  Accordingly, the Loan Documents may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties.  There are no unwritten or oral agreements between the parties. This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall be deemed an original but all of which when taken together shall constitute a single contract.  Delivery of an executed signature page to this Agreement by facsimile transmission, “pdf” or similar electronic copy shall be as effective as delivery of a manually signed counterpart of this Agreement.  Any party hereto may request an original counterpart of any party delivering such electronic counterpart.  A set of the copies of this Agreement signed by all the parties shall be lodged with the Borrower and the Administrative Agent.

11.2    Waivers.  Each Grantor hereby waives, for the benefit of the Secured Parties: 
(a)    any right to require any Secured Party, as a condition of payment or performance by such Grantor, to (i) proceed against the Borrower, any other Grantor or any other Person; (ii) proceed against or exhaust any security held from the Borrower, any other Grantor or any other Person; (iii) proceed against or have resort to any balance of any deposit account or credit on the books of any Secured Party in favor of the Borrower, any such other Grantor, or any other Person; or (iv) pursue any other remedy in the power of any Secured Party whatsoever;
(b)    any defense (other than the defense of payment) arising by reason of the incapacity, lack of authority or any disability or other defense of the Borrower or any other Grantor including any defense based on or arising out of the lack of validity or the unenforceability of any of the 

37

	
			
	 
	 
	 

Secured Obligations or any agreement or instrument relating thereto or by reason of the cessation of the liability of the Borrower or any other Grantor from any cause other than payment in full of all Secured Obligations;
(c)    any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in other respects more burdensome than that of the principal;
(d)    any defense based upon any Secured Party’s administrative errors or omissions, except behavior which amounts to gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final and non-appealable decision);
(e)    (i) any principles or provisions of law, statutory or otherwise, which are or might be in conflict with the terms of this Agreement and any legal or equitable discharge of such Grantor’s obligations hereunder; (ii) the benefit of any statute of limitations affecting such Grantor’s liability hereunder or the enforcement hereof; (iii) any rights to set-offs, recoupments and counterclaims; and (iv) promptness, diligence and any requirement that any Secured Party protect, secure, perfect or insure any security interest or lien or any property subject thereto;
(f)    notices, demands, presentments, protests, notices of protest, notices of dishonor and notices of any action or inaction, including acceptance of this Agreement, notices of default under the Loan Documents, the Specified Hedging Agreements, the Specified Cash Management Agreements or any agreement or instrument related thereto, notices of any renewal, extension or modification of the Secured Obligations or any agreement related thereto and notices of any extension of credit to the Borrower or any other Grantor; 
(g)    any defenses (other than the defense of payment) or benefits that may be derived from or afforded by law which limit the liability of or exonerate guarantors or sureties, or which may conflict with the terms of this Agreement; 
(h)    to the extent such waiver is not prohibited by Section 9-602 of the UCC, any defense based upon any Secured Party’s failure to mitigate damages; and
(i)    all rights to insist upon, plead or in any manner claim or take the benefit or advantage of any appraisal, valuation, stay, extension, marshaling of assets, redemption or similar law, or exemption, whether now or hereafter in force, which may delay, prevent or otherwise affect the performance by any Grantor of its obligations under, or the enforcement by any Secured Party of, this Agreement.

11.3    Governing Law.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH, AND 

38

	
			
	 
	 
	 

GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO CONFLICT OF LAWS PROVISIONS THAT WOULD RESULT IN THE APPLICATION OF LAWS OTHER THAN THE LAWS OF THE STATE OF NEW YORK (OTHER THAN ANY MANDATORY PROVISIONS OF THE UCC RELATING TO THE LAW GOVERNING PERFECTION AND THE EFFECT OF PERFECTION OF THE SECURITY INTERESTS GRANTED HEREUNDER)).

11.4    Regulatory Matters.  Notwithstanding anything to the contrary set forth in this Agreement or any other Loan Document, the Collateral Agent, on behalf of the Secured Parties, acknowledges and agrees that its rights, remedies and powers under this Agreement (including its exercise of remedial rights upon Collateral and voting of equity interests in (or otherwise taking control of) Persons licensed by the Gaming Authorities and/or under Gaming Laws), may be exercised only to the extent that (i) the exercise thereof does not violate any applicable laws, rules and regulations of the Gaming Authorities, including Gaming Laws, and (ii) all necessary approvals, licenses and consents from the Gaming Authorities required in connection therewith are obtained.  Notwithstanding any other provision of this Agreement, the Grantors expressly authorize the Collateral Agent and the other Secured Parties to cooperate with the applicable Gaming Authorities in connection with the administration of their regulatory jurisdiction over each Grantor and the Borrower, including, without limitation, to the extent not inconsistent with the internal policies of such Collateral Agent or Secured Party and any applicable legal or regulatory restrictions, the provision of such documents or other information as may be requested by any such Gaming Authorities relating to the Collateral Agent, any Grantor or the Borrower, or the Loan Documents.  The parties acknowledge that the provisions of this Section 11.4 shall not be for the benefit of any Grantor, the Borrower or any other Person.  

11.5    Updates to Disclosure Schedules.  Upon delivery of any duly completed and executed Pledge Supplement in accordance with the terms hereof, the applicable Schedules hereto shall be deemed to have been updated as provided therein.  Except as otherwise set forth herein, the Grantors may execute at any time and deliver to the Collateral Agent and the Administrative Agent a completed and executed Pledge Supplement.

11.6    Consent to Jurisdiction and Waiver of Jury Trial.  THE PROVISIONS OF (A) IN THE CASE OF THE BORROWER, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS AND (B) IN THE CASE OF EACH OTHER GRANTOR, THE SUBSIDIARY GUARANTY UNDER THE HEADINGS “CONSENT TO JURISDICTION” AND “WAIVER OF JURY TRIAL” ARE INCORPORATED HEREIN BY THIS REFERENCE AND SUCH INCORPORATION SHALL SURVIVE ANY TERMINATION OF THE CREDIT AGREEMENT, THE OTHER LOAN DOCUMENTS OR THE SUBSIDIARY GUARANTY. 

39

	
			
	 
	 
	 

11.7    Reinstatement.  This Agreement shall continue to be effective or be reinstated, as the case may be, if at any time any amount received by the Collateral Agent or any other Secured Party hereunder or pursuant hereto is rescinded or must otherwise be restored or returned by the Collateral Agent or such Secured Party upon the occurrence of any proceeding, voluntary or involuntary, involving the bankruptcy, reorganization, insolvency, receivership, liquidation or other similar arrangement affecting any Grantor, the Borrower or any Subsidiary of the Borrower or upon the appointment of any intervenor or conservator of, or trustee or similar official for, any Grantor, the Borrower or any Subsidiary of the Borrower or any substantial part of any Grantor’s, the Borrower’s or any Subsidiary of the Borrower’s assets, or upon the entry of an order by any court avoiding the payment of such amount, or otherwise, all as though such payments had not been made.  

11.8    Amendments.  Subject to the last sentence of Section 8.02 of the Credit Agreement, no waiver, amendment, modification or termination of any provision of this Agreement, or consent to any departure by the Grantors therefrom, shall in any event be effective without the prior written consent of each Grantor party hereto and either (x) the Required Lenders or (y) the Collateral Agent (acting at the direction of the Required Lenders).

11.9    Intercreditor Agreement.  All rights and remedies of the Collateral Agent hereunder are, as between the Administrative Agents (as defined in the Intercreditor Agreement) and the Collateral Agents (as defined in the Intercreditor Agreement), subject to the terms of the Intercreditor Agreement. This provision is for the benefit of, and may be enforced exclusively by, the Administrative Agents and the Collateral Agents only. For the avoidance of doubt, this provision is not for the benefit of any Grantor and may not, under any circumstances, be enforced by any Grantor.

[SIGNATURE PAGES FOLLOW]

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IN WITNESS WHEREOF, each Grantor and the Collateral Agent have caused this Agreement to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first written above.

	
		
	MONTREIGN OPERATING COMPANY, LLC,
a New York limited liability company

	By:
	/s/ Joseph A. D’Amato

	Name:
	Joseph A. D’Amato

	Title: 
	President

	
		
	EMPIRE RESORTS REAL ESTATE I, LLC,
a New York limited liability company

	By:
	/s/ Joseph A. D’Amato

	Name:
	Joseph A. D’Amato

	Title:
	President

    
	
		
	EMPIRE RESORTS REAL ESTATE II, LLC,
a New York limited liability company

	By:
	/s/ Joseph A. D’Amato

	Name:
	Joseph A. D’Amato

	Title:
	President

	
			
	 
	 
	 

 

	
		
	CREDIT SUISSE AG, 
CAYMAN ISLANDS BRANCH,  
as Collateral Agent

	By:
	/s/ Robert Hetu

	Name:
	Robert Hetu

	Title: 
	Authorized Signatory

	
		
	By:
	/s/ Whitney Gaston

	Name:
	Whitney Gaston

	Title: 
	Authorized Signatory

EXHIBIT A to EXHIBIT B to Pledge and Security AgreementExhibit

EXHIBIT 10.48

                                            

EQUITY PLEDGE AGREEMENT

dated as of January 24, 2017

by

MONTREIGN HOLDING COMPANY, LLC,
as Pledgor

and

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,
as Collateral Agent

|US-DOCS\78574287.1  Empire - Building Term Loan Agreement - Exhibit C-3 Form of Equity Pledge Agreement||

 

TABLE OF CONTENTS
                                                                            Page
SECTION 1. DEFINITIONS; RULES OF CONSTRUCTION                                          1
		
	1.1
	Definitions                                                                                                   1

		
	1.2
	Rules of Construction                                                                                  3

		
	SECTION 2. PLEDGE
	3

		
	2.1
	Pledged Collateral.                                                                                      3

		
	2.2
	Delivery of Certificates and Instruments                                                    4

		
	2.3
	Pledgor’s Rights.                                                                                        5

		
	2.4
	Secured Parties Not Liable                                                                         6

		
	2.5
	Attorney-in-Fact.                                                                                        6

		
	2.6
	Collateral Agent May Perform                                                                   7

		
	2.7
	Reasonable Care                                                                                         7

		
	2.8
	Security Interest Absolute                                                                          7

SECTION 3. REPRESENTATIONS AND WARRANTIES                                             7
		
	3.1
	Organization; Powers and Authority                                                         8

		
	3.2
	Valid Security Interest                                                                               8

		
	3.3
	No Liens                                                                                                    8

		
	3.4
	Certificated Securities                                                                               8

		
	3.5
	Location of Records/Chief Executive Office                                            8

		
	3.6
	Consents, Etc.                                                                                            9

		
	3.7
	Name                                                                                                         9

		
	3.8
	Interests in Borrower.                                                                                9

		
	3.9
	Valid Agreement                                                                                        9

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|

 

		
	3.10
	No Conflict                                                                                                 9

SECTION 4. COVENANTS                                                                                              9
		
	4.1
	Sale of Pledged Collateral                                                                          9

		
	4.2
	No Other Liens                                                                                           9

		
	4.3
	Principal Office                                                                                        10

		
	4.4
	Supplements; Further Assurances, etc                                                     10

		
	4.5
	Amendment of Governing Agreements                                                   10

		
	4.6
	Certificates and Instruments                                                                    10

		
	4.7
	Financing Statements                                                                               10

		
	4.8
	Improper Distributions                                                                             11

		
	4.9
	Additional Covenants                                                                               11

SECTION 5. EXERCISE OF REMEDIES UPON AN EVENT OF DEFAULT             11
		
	5.1
	Remedies Generally                                                                                  11

		
	5.2
	Sale of Pledged Collateral                                                                        11

		
	5.3
	Purchase of Pledged Collateral                                                                 12

		
	5.4
	Application of Proceeds                                                                            12

SECTION 6. MISCELLANEOUS PROVISIONS                                                           12
		
	6.1
	Notices                                                                                                      12

		
	6.2
	Continuing Security Interest                                                                     13

		
	6.3
	Reinstatement                                                                                           13

		
	6.4
	Independent Security                                                                                13

		
	6.5
	Amendments                                                                                             13

		
	6.6
	Successors and Assigns                                                                            13

		
	6.7
	Collateral Agent                                                                                        14

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	6.8
	Survival                                                                                                    14

		
	6.9
	Transfer of Loans                                                                                     14

		
	6.10
	No Waiver; Remedies Cumulative                                                           14

		
	6.11
	Counterparts                                                                                             15

		
	6.12
	Headings Descriptive                                                                               15

		
	6.13
	Severability                                                                                              15

		
	6.14
	Governing Law                                                                                        15

		
	6.15
	Consent to Jurisdiction.                                                                           15

		
	6.16
	Waiver of Jury Trial                                                                                 16

		
	6.17
	Entire Agreement                                                                                     16

		
	6.18
	Independent Obligations                                                                          16

		
	6.19
	Waiver of Defenses.                                                                                 16

		
	6.20
	Subrogation, Etc                                                                                       18

		
	6.21
	Collateral Agent                                                                                        19

		
	6.22
	Regulatory Matters                                                                                   19

		
	6.23
	Intercreditor Agreement                                                                           19

EXHIBIT A    -    MEMBERSHIP INTERESTS
EXHIBIT B    -    IRREVOCABLE PROXY
EXHIBIT C    -    IRREVOCABLE BLANK POWERS FOR MEMBERSHIP INTERESTS

iii

 

-EQUITY PLEDGE AGREEMENT

This EQUITY PLEDGE AGREEMENT (as amended, amended and restated, supplemented or otherwise modified from time to time, this “Agreement”), dated as of January 24, 2017, is entered into by and between MONTREIGN HOLDING COMPANY, LLC, a New York limited liability company (the “Pledgor”), and CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, in its capacity as collateral agent for the benefit of the Secured Parties (together with its successors and assigns in such capacity, the “Collateral Agent”).
RECITALS

A.    Montreign Operating Company, LLC, a New York limited liability company (the “Borrower”), has entered into that certain Building Term Loan Agreement, dated as of the date hereof (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among the Borrower, the banks, financial institutions and other entities from time to time party thereto in the capacity of lenders (the “Lenders”), and Credit Suisse AG, Cayman Islands Branch, as administrative agent (together with its successors and assigns in such capacity, the “Administrative Agent”).   
B.    Subject to the terms and conditions of the Credit Agreement, certain Loan Parties may enter into one or more Specified Hedging Agreements with one or more counterparties to a Specified Hedging Agreement.
C.    Subject to the terms and conditions of the Credit Agreement, certain Loan Parties may enter into one or more Specified Cash Management Agreements with one or more counterparties to a Specified Cash Management Agreement.
D.    The Pledgor owns 100% of the membership interests of the Borrower, and the Pledgor will receive substantial benefit from the making of the Loans to the Borrower pursuant to the terms of the Credit Agreement and the other Loan Documents.
E.    It is a condition precedent to the effectiveness of the Credit Agreement and the other Loan Documents that this Agreement be executed and delivered by the Pledgor.
AGREEMENT
NOW, THEREFORE, in consideration of the premises herein and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Pledgor and Collateral Agent, for the benefit of the Secured Parties, hereby agree as follows:
SECTION 1.  DEFINITIONS; RULES OF CONSTRUCTION

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1.1    Definitions.  The following terms shall have the following respective meanings: 
“Administrative Agent” shall have the meaning given in the recitals. 
“Agreement” shall have the meaning given in the preamble. 
“Bankruptcy Code” shall mean Title 11 of the United States Code entitled “Bankruptcy” as now and hereafter in effect, or any successor statute. 
“Borrower” shall have the meaning given in the recitals. 
“Borrower LLC Agreement” shall mean the Amended and Restated Operating Agreement of Montreign Operating Company, LLC (a New York Limited Liability Company), dated as of November 2, 2016, as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with the terms hereof and thereof.  
“Collateral Agent” shall have the meaning given in the preamble. 
“Credit Agreement” shall have the meaning given in the recitals. 
“Financing Statements” shall mean all financing statements, recordings, filings or other instruments of registration necessary or appropriate to perfect a security interest or Lien by filing in any appropriate filing or recording office in accordance with the UCC or any other relevant applicable law. 
“Governing Agreements” shall mean, collectively, the Certificate of Formation of the Borrower and the Borrower LLC Agreement. 
“Lenders” shall have the meaning given in the recitals. 
“Membership Interests” shall have the meaning ascribed thereto in Section 2.1(a).
“Permitted Liens” shall mean Liens of the types described in clauses (a), (b), (s), (x) and (bb) of Section 6.02 of the Credit Agreement; provided that for purposes of this definition any reference in such clauses to “Loan Party” or “Loan Parties” shall mean and include the Pledgor.
“Pledged Collateral” shall have the meaning ascribed thereto in Section 2.1(a).
“Pledgor” shall have the meaning given in the preamble. 
“Secured Obligations” shall have the meaning ascribed thereto in Section 2.1(a).

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“Termination Date” shall mean the date on which all Secured Obligations have been “paid in full” as such term is defined in the Credit Agreement.
“UCC” shall mean the Uniform Commercial Code as the same may, from time to time, be in effect in the State of New York; provided, however, in the event that, by reason of mandatory provisions of law, any or all of the perfection or priority of the security interest in any Pledged Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or priority and for purposes of definitions related to such provisions.
Capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement.  
1.2    Rules of Construction.  Except as otherwise provided herein or unless the context otherwise requires, the rules of construction set forth in Sections 1.02 through 1.08 of the Credit Agreement, including with respect to the meaning of the expressions “payment in full,” “paid in full” and any other similar terms or phrases, shall be applicable to this Agreement mutatis mutandis.  If any conflict or inconsistency exists between this Agreement and the Credit Agreement, the Credit Agreement shall govern.  All references herein to provisions of the UCC shall include all successor provisions under any subsequent version or amendment to any Article of the UCC.  Except as expressly specified otherwise herein, any reference herein to any Exhibit or Schedule to this Agreement shall be deemed to refer to such Exhibit or Schedule as amended or supplemented from time to time.
SECTION 2.      PLEDGE
2.1    Pledged Collateral.
(a)    Subject to Section 2.1(c), the Pledgor hereby irrevocably and unconditionally guarantees to the Collateral Agent, for the ratable benefit of the Secured Parties, the prompt and complete payment and performance in full when due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including the payment of amounts which would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code), of all of the Obligations, whether now existing or hereafter arising and howsoever evidenced (the “Secured Obligations”).  Notwithstanding any provision hereof or in any other Loan Document to the contrary, the Secured Obligations of the Pledgor shall not include any Excluded Swap Obligations (as defined in the Pledge and Security Agreement).  The Pledgor hereby assigns as collateral security to the Collateral Agent (for the ratable benefit of the Secured Parties), and hereby grants to the Collateral Agent (for the ratable benefit of the Secured Parties), a security interest in and continuing lien on, all of the Pledgor’s right, title and interest in, to and under all of 

3
  

 

the following, in each case whether now owned or existing or hereafter acquired or arising and wherever located (collectively, the “Pledged Collateral”), as security for the prompt and complete payment and performance when due and with all rights and remedies under the UCC and other applicable law (whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise) of the Secured Obligations:
Any and all membership interests, limited liability company interests, member’s interests, equity interests, and other Capital Stock owned directly by the Pledgor, whether now owned or subsequently acquired, in the Borrower (collectively, the “Membership Interests”), including, without limitation, all such interests as are described on Exhibit A hereto, the certificates representing such interests and (i) the Pledgor’s share of all rights to receive income, gain, profit, loss or other items allocated or distributed to the Pledgor under the Governing Agreements; (ii) all rights of the Pledgor to receive all income, profit or other dividends, distributions, cash, warrants, rights, options, instruments, securities and other property of any nature whatsoever of the Pledgor with respect to such interests; (iii) all of the Pledgor’s capital or membership interest, including any capital accounts, in the Borrower, and all accounts, deposits or credits of any kind with the Borrower; (iv) all of the Pledgor’s voting rights or rights to control or direct the affairs of the Borrower; (v) all of the Pledgor’s right, title and interest in the Borrower as such rights are derived from the Membership Interests, including any interest of the Pledgor in the entries of the books of the Borrower; (vi) all other right, title and interest in or to the Borrower as such rights are derived from the Membership Interests; (vii) all claims of the Pledgor for damages arising out of a breach of or a default relating to the property described in this Section 2.1; (viii) all rights of the Pledgor to terminate, amend, modify, supplement or waive performance under the Governing Agreements, to perform thereunder and to compel performance and otherwise exercise the remedies thereunder; and (ix) all of the proceeds of any and all of the above.  Notwithstanding anything herein to the contrary, in no event shall the security interest granted under Section 2.1(a) attach to any Excluded Collateral, and Pledged Collateral shall not include any Excluded Collateral.
(b)    As used herein, the term “proceeds” shall be construed in its broadest sense and shall include whatever is received or receivable when any of the Pledged Collateral, or any proceeds thereof, are sold, collected, exchanged or otherwise disposed of, whether voluntarily or involuntarily, and shall include, without limitation, all rights to payment, including interest and premiums, with respect to any such Pledged Collateral or any proceeds thereof.
(c)    Notwithstanding anything to the contrary contained in this Agreement, recourse of the Collateral Agent and the Secured Parties to the Pledgor under this Agreement shall be limited solely to the Pledged Collateral.  No assets of the Pledgor other than the Pledged Collateral shall be available to satisfy any liability of the Pledgor arising under this Agreement, whether under this Section 2 or otherwise.  The rights of the Collateral Agent and the Secured Parties to satisfy the obligations of the Pledgor pursuant to this Agreement shall be limited solely to the 

4
  

 

foreclosure and other remedies in respect of (and all other rights and remedies relating to the foreclosure and other remedies in respect of) the Lien created hereby and the Collateral Agent and the Secured Parties shall have no right to proceed directly against the Pledgor for the satisfaction of any Secured Obligation or for any deficiency remaining after the foreclosure and other remedies in respect of the Lien created hereunder or any portion thereof. The Collateral Agent and the Secured Parties, by accepting this Agreement, agree that they shall not sue for, seek or demand any deficiency judgment against the Pledgor in any action or proceeding under, or by reason of or in connection with this Agreement.
2.2    Delivery of Certificates and Instruments.  All certificates or instruments representing or evidencing the Pledged Collateral, if any, shall be delivered to and held by or on behalf of the Collateral Agent in accordance with Section 4.6 and subject to Section 6.22, and shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed, undated instruments of transfer or assignment in blank, all in form and substance reasonably satisfactory to the Collateral Agent.  Subject to Section 6.22, the Collateral Agent shall have the right, at any time following the occurrence and during the continuation of an Event of Default, without notice to the Pledgor, to transfer or to register in its name or in the name of any of its nominees any or all of the Pledged Collateral.  In addition, the Collateral Agent shall have the right at any time following the occurrence and during the continuation of an Event of Default to exchange certificates or instruments representing or evidencing any of the Membership Interests for certificates or instruments of smaller or larger denominations, and the Pledgor shall cause the Borrower to comply with any such requests of the Collateral Agent.
2.3    Pledgor’s Rights.
(a)    Voting Rights.  
(i)    Unless an Event of Default shall have occurred and be continuing, and the Collateral Agent shall have notified the Pledgor in writing that its rights under this Section 2.3 are being suspended, the Pledgor shall be entitled to exercise all voting and other rights with respect to the Pledged Collateral.  The Collateral Agent shall execute and deliver to the Pledgor, or cause to be executed and delivered to the Pledgor, all such proxies, powers of attorney, certificates and other instruments as the Pledgor may reasonably request for the purpose of enabling the Pledgor to exercise the voting and/or rights and powers the Pledgor is entitled to exercise pursuant to this clause (i).
(ii)    Upon the occurrence and during the continuation of an Event of Default, after the Collateral Agent shall have notified the Pledgor in writing of the suspension of its rights under this Section 2.3, then, subject to Section 6.22, all voting and other rights of the Pledgor with respect to the Pledged Collateral which the Pledgor would otherwise be entitled 

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to exercise pursuant to the terms of this Agreement or otherwise shall cease, and all such rights shall be vested in the Collateral Agent which shall thereupon have the sole right to exercise such rights.  After all Events of Default have been cured or waived and the Pledgor has delivered to the Collateral Agent a certificate to that effect, the Pledgor’s rights under this Section 2.3 shall be reinstated.
(b)    Distributions.
(i)    Unless an Event of Default shall have occurred and be continuing and the Collateral Agent shall have notified the Pledgor in writing that its rights under this Section 2.3 (although no such notice shall be required if an Event of Default under Section 7.01(h) or (i) of the Credit Agreement has occurred and is continuing) are being suspended, the Pledgor shall be entitled to receive and retain any and all dividends, interest, principal and other distributions paid on or distributed in respect of the Pledged Collateral to the extent and only to the extent that all such dividends, interest, principal and other distributions are permitted by, and otherwise paid or distributed in accordance with, the terms and conditions of the Loan Documents.
(ii)    Upon the occurrence and during the continuation of an Event of Default, after the Collateral Agent shall have notified the Pledgor in writing of the suspension of its rights under this Section 2.3 (although no such notice shall be required if an Event of Default under Section 7.01(h) or (i) of the Credit Agreement has occurred and is continuing), then, subject to Section 6.22, all rights of the Pledgor to the dividends, interest, principal and other distributions shall cease and all such rights shall be vested in the Collateral Agent which shall thereupon have the sole right to receive all such dividends, interest accrued and other distributions provided that, notwithstanding the occurrence and continuance of an Event of Default, the Pledgor may continue to receive dividends and distributions made pursuant to subclause (b) and subclause (c) of Section 6.05 of the Credit Agreement; provided however that the forgoing shall in no event be construed to amend, modify, supplement or restrict the Collateral Agent’s and the other Secured Parties’ rights to exercise remedial rights pursuant to the Loan Documents (including rights to issue directions and otherwise act under Control Agreements).  After all Events of Defaults have been cured or waived and the Pledgor has delivered to the Collateral Agent a certificate to that effect, the Pledgor’s rights under this Section 2.3 shall be reinstated.
(c)    Turnover.  All distributions and other amounts which are received by the Pledgor contrary to the provisions of this Agreement or the other Loan Documents shall be received in trust for the benefit of the Collateral Agent, shall be segregated from other funds of the Pledgor and shall be paid over to the Collateral Agent as Pledged Collateral in the same form as so received (with any necessary endorsement requested by the Collateral Agent).

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2.4    Secured Parties Not Liable.  Notwithstanding any other provision contained in this Agreement, the Pledgor shall remain liable under the Governing Agreements to observe and perform all of the conditions and obligations to be observed and performed by the Pledgor thereunder.  None of the Collateral Agent, any other Secured Party or any of their respective directors, officers, employees, affiliates or agents shall have any obligations or liability under or with respect to any Pledged Collateral by reason of or arising out of this Agreement (except as set forth in Section 9-207 of the UCC) or the receipt by the Collateral Agent of any payment relating to any Pledged Collateral, nor shall any of the Collateral Agent, any other Secured Party or any of their respective directors, officers, employees, affiliates or agents be obligated in any manner to (a) perform any of the obligations of the Pledgor under or pursuant to the Governing Agreements or any other agreement to which the Pledgor is a party; (b) make any payment or inquire as to the nature or sufficiency of any payment or performance with respect to any Pledged Collateral; (c) present or file any claim or collect the payment of any amounts or take any action to enforce any performance with respect to the Pledged Collateral; or (d) take any other action whatsoever with respect to the Pledged Collateral other than as expressly provided for herein.
2.5    Attorney-in-Fact.
(a)    Subject to Section 6.22 and until the Termination Date, the Pledgor hereby appoints the Collateral Agent (such appointment being coupled with an interest), on behalf of the Secured Parties, or any Person, officer or agent whom the Collateral Agent may designate, as its true and lawful attorney-in-fact and proxy, with full irrevocable power and authority in the place and stead of the Pledgor and in the name of the Pledgor or in its own name, at the Pledgor’s cost and expense, to the extent reasonable, from time to time to take any action and to execute any instrument which may be reasonably necessary to enforce its rights under this Agreement, including, without limitation, authority to receive, endorse and collect all instruments made payable to the Pledgor representing any distribution, interest payment or other payment in respect of the Pledged Collateral or any part thereof to be paid over to the Collateral Agent pursuant to Section 2.3(b)(ii) and to give full discharge for the same.  Notwithstanding anything in this Section 2.5(a) to the contrary, the Collateral Agent shall not exercise any of the rights as attorney-in-fact or proxy provided for in this Section 2.5(a) unless and until an Event of Default has occurred and is continuing.
(b)    The Pledgor hereby acknowledges and agrees that the Collateral Agent shall have no fiduciary duties to the Pledgor in acting pursuant to this power-of-attorney and the Pledgor hereby waives any claims or rights of a beneficiary of a fiduciary relationship hereunder.

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2.6    Collateral Agent May Perform.  If the Pledgor fails to perform any agreement contained herein after receipt of a written request to do so from the Collateral Agent after the occurrence and during the continuance of any Event of Default, the Collateral Agent may (but shall not be obligated to) itself perform, or cause performance of, such agreement, and the expenses of the Collateral Agent, including the reasonable and documented fees and expenses of its counsel, incurred in connection therewith shall be payable by the Borrower under Section 9.05 of the Credit Agreement; provided that if any case or proceeding under any Debtor Relief Law shall have occurred with respect to the Pledgor, the written request described in this Section 2.6 shall not be required and shall be deemed to have been received by the Pledgor upon the failure of the Pledgor to perform such agreement.
2.7    Reasonable Care.  The Collateral Agent shall be deemed to have exercised reasonable care in the custody and preservation of the Pledged Collateral in its possession if the Pledged Collateral is accorded treatment reasonably equivalent to that which the Collateral Agent accords its own property of the type of which the Pledged Collateral consists, it being understood that the Collateral Agent shall have no responsibility for (a) ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Pledged Collateral, whether or not the Collateral Agent has or is deemed to have knowledge of such matters or (b) taking any necessary steps to preserve rights against any parties with respect to any Pledged Collateral.
2.8    Security Interest Absolute.  All rights and security interests of the Collateral Agent purported to be granted hereunder, and all obligations of the Pledgor hereunder, shall be absolute and unconditional irrespective of:
(a)    any lack of validity or enforceability of any of the Loan Documents, the Specified Hedging Agreements, the Specified Cash Management Agreements or any other agreement or instrument relating thereto;
(b)    any change in the time, manner or place of payment of, or in any other term of, all or any of the Secured Obligations, or any other amendment or waiver of or any consent to any departure from the Loan Documents, the Specified Hedging Agreements, the Specified Cash Management Agreements or any other agreement or instrument relating thereto;
(c)    any exchange, release or non-perfection of any other collateral, or any release, amendment or waiver of, or consent to any departure from, any guaranty, for all or any of the Secured Obligations;
(d)    any bankruptcy or insolvency of the Borrower, the Pledgor or any other Person; or 

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(e)    any other circumstance which might otherwise constitute a defense available to, or a discharge of, the Pledgor or any third-party pledgor (other than the defense of payment).
SECTION 3.      REPRESENTATIONS AND WARRANTIES
The Pledgor represents and warrants to the Collateral Agent for its benefit and the benefit of the Secured Parties, as of the Closing Date, as follows, which representations and warranties shall survive the execution and delivery of this Agreement: 
3.1    Organization; Powers and Authority
3.1    Valid Security Interest.  This Agreement is effective to create in favor of the Collateral Agent, for the ratable benefit of the Secured Parties, a legal, valid, binding and enforceable security interest (except as enforceability may be subject to applicable Debtor Relief Laws or other similar laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law) in the Pledged Collateral and proceeds thereof and, upon the filing of UCC financing statements, naming the Pledgor as “debtor” and the Collateral Agent as “secured party” and describing the Pledged Collateral, in the office of the Secretary of State of New York, the security interest of the Collateral Agent in the Pledged Collateral and the proceeds thereof that can be perfected by the filing of a financing statement under the UCC will constitute a valid, perfected, first priority Lien (subject to, in all cases other than priority, only Permitted Liens).  When Pledged Collateral constituting “certificated securities” (as defined in the UCC) is delivered to the Collateral Agent, together with instruments of transfer duly endorsed in blank, this Agreement will create a first priority perfected security interest (subject to, in all cases after their priority, only Permitted Liens) in all right, title and interest of the Pledgor in such certificated securities.
3.2    No Liens.  The Pledgor is the owner of all of its right, title and interest in the Pledged Collateral free from any Liens other than the Liens created pursuant to this Agreement, other Permitted Liens and Liens created under the Revolving Facility Documents (subject to the Intercreditor Agreement).  No Person other than the Pledgor has any right, title or interest in or to the Pledged Collateral, other than Permitted Liens.
3.3    Certificated Securities.  The Membership Interests are “certificated securities” as defined in the UCC.
3.4    Location of Records/Chief Executive Office.  As of the date hereof, the chief executive office of the Pledgor and the office location where the Pledgor keeps its records concerning the Pledged Collateral is located at:

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Montreign Holding Company, LLC    
204 Route 17B
Monticello, NY 12701
Facsimile:  (845) 807-0000

The Pledgor’s taxpayer identification number is 81-4849588 and the Pledgor’s organizational identification number with the State of New York is 170103010830.
3.5    Consents, Etc.  Subject to Section 6.22, no consent, authorization, approval or other action by, and no notice to or filing with, any governmental authority or any other Person is required either (a) for the pledge by the Pledgor of the Pledged Collateral pursuant to this Agreement or for the due execution, delivery or performance of this Agreement by the Pledgor (other than such consents, authorizations, approvals or other actions obtained on or prior to the date hereof) or (b) subject to Section 6.22, for the exercise by the Collateral Agent of the voting or other rights provided for in this Agreement or of the remedies in respect of the Pledged Collateral pursuant to this Agreement, except (i) in the case of clause (b), as may be required under Gaming Laws and in connection with the disposition of the Pledged Collateral by laws affecting the offering and sale of securities generally and (ii) such consents, approvals, registrations, filings, Permits, notices or other actions (including, without limitation, all Gaming Licenses and other necessary regulatory and gaming approvals and shareholder approvals), as have been made or obtained and are in full force and effect.
3.6    Name.  The full legal name of the Pledgor is Montreign Holding Company, LLC, as indicated on the public record of the State of New York.  The Pledgor does not, and has not during the previous five years, used any other name or maintained its chief executive office outside of the State referenced in Section 3.5 above.
3.7    Interests in Borrower.  The Pledgor owns 100% of the ownership interests of the Borrower.
3.8    Valid Agreement.  This Agreement has been duly authorized, executed and delivered by the Pledgor and constitutes a legal, valid and binding obligation of the Pledgor, enforceable against the Pledgor in accordance with its terms except as enforceability may be limited by applicable Gaming Laws and applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditor’s rights generally or by equitable principles relating to enforceability.

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3.9    No Conflict.  Subject to Section 6.22, neither the execution and delivery hereof nor the consummation of the transactions contemplated hereby nor the compliance with the terms hereof (a) does or will contravene the Pledgor’s formation documents or any other legal requirement in any material respect then applicable to or binding on Pledgor or (b) does or will contravene or result in any breach or constitute any default under, or result in or require the creation of any Lien upon any of Pledgor’s properties or under any material agreement or instrument to which Pledgor is a party or by which it or any of its material properties may be bound except as contemplated by this Agreement.
SECTION 4.      COVENANTS
The Pledgor hereby covenants and agrees from and after the date of this Agreement until the termination of this Agreement in accordance with the provisions of Section 6.9:
4.1    Sale of Pledged Collateral.  Except as permitted under the Loan Documents, the Pledgor shall not sell or otherwise dispose of, or grant any option or warrant with respect to, any of the Pledged Collateral.
4.2    No Other Liens.  The Pledgor shall not create, incur or permit to exist, shall defend the Pledged Collateral against and shall take such other action as is reasonably necessary to remove, any Lien or claim on or to the Pledged Collateral, other than the Lien created pursuant to this Agreement, other Permitted Liens and Liens created under the Revolving Facility Documents (subject to the Intercreditor Agreement), and subject to such Permitted Liens and Liens created under the Revolving Facility Documents, shall defend the right, title and interest of the Collateral Agent in and to the Pledged Collateral against the claims and demands of all Persons whomsoever.
4.3    Principal Office.  The Pledgor shall not establish a new location for its chief executive office, change its state of formation or change its name until (i) it has given to the Collateral Agent and the Administrative Agent not less than ten (10) days prior written notice of its intention so to do, clearly describing such new location or specifying such new name, as the case may be, and (ii) with respect to such new location or such new name, as the case may be, it shall have taken all action necessary to maintain the security interest of the Collateral Agent in the Pledged Collateral intended to be granted hereby at all times fully perfected and in full force and effect.
4.4    Supplements; Further Assurances, etc.  The Pledgor shall, at any time and from time to time, at the expense of the Pledgor, promptly execute and deliver all further instruments and documents, and take all further action, that the Collateral Agent or the Administrative Agent may reasonably request, in order to perfect any security interest granted or purported to be granted hereby in the Pledged Collateral or to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder with respect to any Pledged Collateral.

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4.5    Amendment of Governing Agreements.  Except as permitted under the Loan Documents, the Pledgor shall not, without the prior written consent of the Collateral Agent, permit (a) the cancellation or termination of any Governing Agreement or (b) any amendment, supplement or modification of, or waiver with respect to any of the provisions of, any Governing Agreement that would have a material and adverse effect on either (i) the rights of the Collateral Agent under this Agreement or (ii) the Pledged Collateral.
4.6    Certificates and Instruments.  The Pledgor shall cause the Membership Interests to be “certificated securities” (within the meaning of the UCC) at all times during the term of this Agreement.  The Pledgor shall deliver all certificates or other documents representing the Pledged Collateral to the Collateral Agent with all necessary instruments of transfer or assignment duly indorsed in blank.  In the event the Pledgor obtains possession of any certificates, or any securities or instruments forming a part of the Pledged Collateral, the Pledgor shall promptly deliver the same to the Collateral Agent together with all necessary instruments of transfer or assignment duly indorsed in blank.  Prior to any such delivery, any Pledged Collateral in the Pledgor’s possession shall be held by the Pledgor in trust for the Collateral Agent.  The Pledgor shall execute and deliver to the Collateral Agent an irrevocable proxy in the form attached hereto as Exhibit B and an irrevocable power in the form attached hereto as Exhibit C with respect to the Membership Interests of the Borrower owned by the Pledgor. 
4.7    Financing Statements.  The Pledgor shall, at the reasonable request of the Collateral Agent, deliver to the Collateral Agent and the Administrative Agent such Financing Statements (or similar statements or instruments of registration under the law of any jurisdiction) as are necessary or, in the reasonable opinion of the Collateral Agent, desirable to establish and maintain the security interests contemplated hereunder as valid, enforceable, first priority security interests as provided herein and the other rights and security contemplated herein, all in accordance with the UCC or any other applicable law, subject to any Permitted Liens and evidence that such Financing Statements have been filed with the New York Secretary of State.  The Borrower shall pay any applicable filing fees and related expenses.  The Pledgor authorizes the Collateral Agent to file any such Financing Statements (or similar statements or instruments of registration under the law of any jurisdiction) without the signature of the Pledgor; provided, however, the foregoing does not create any obligation on the part of the Collateral Agent to file any Financing Statements.
4.8    Improper Distributions.  Notwithstanding any other provision contained in this Agreement, the Pledgor shall not accept any distributions, dividends or other payments (or any collateral in lieu thereof) in respect of the Pledged Collateral, except to the extent the same are permitted by the terms of this Agreement and the other Loan Documents.
4.9    Additional Covenants.  The Pledgor agrees to comply, and shall comply, with Section 6.18 of the Credit Agreement as if such Section was fully set forth herein.

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SECTION 5.      EXERCISE OF REMEDIES UPON AN EVENT OF DEFAULT
5.1    Remedies Generally.  If an Event of Default shall have occurred and be continuing, the Collateral Agent may exercise, in addition to all other rights and remedies granted in this Agreement and in any other instrument or agreement securing, evidencing or relating to the Secured Obligations, all rights and remedies of a secured party under the UCC and all other rights and remedies available at law or in equity, in each case subject to and in accordance with the Credit Agreement and the other Loan Documents and solely with respect to the Pledged Collateral.
5.2    Sale of Pledged Collateral.  Subject to Section 6.22:
(a)    Without limiting the generality of Section 5.1, if an Event of Default shall have occurred and be continuing, the Collateral Agent may, without notice except as specified below, sell the Pledged Collateral or any part thereof in one or more parcels at public or private sale or at any of the Collateral Agent’s corporate trust offices or elsewhere, for cash, on credit or for future delivery, irrespective of the impact of any such sales on the market price of the Pledged Collateral at any such sale.  Each purchaser at any such sale shall hold the property sold absolutely, free from any claim or right on the part of the Pledgor, and the Pledgor hereby waives (to the extent permitted by law) all rights of redemption, stay and/or appraisal which the Pledgor now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted.  The Pledgor agrees that at least ten (10) days’ notice to the Pledgor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification.  The Collateral Agent shall not be obligated to make any sale of Pledged Collateral regardless of notice of sale having been given.  The Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.  The Pledgor hereby waives any claims against the Collateral Agent arising by reason of the fact that the price at which any Pledged Collateral may have been sold at such a private sale was less than the price which might have been obtained at a public sale, even if the Collateral Agent accepts the first offer received and does not offer such Pledged Collateral to more than one offeree so long as such process is commercially reasonable.
(b)    The Pledgor recognizes that, if an Event of Default shall have occurred and be continuing, the Collateral Agent may elect to sell all or any part of the Pledged Collateral to one or more purchasers in privately negotiated transactions in which the purchasers will be obligated to agree, among other things, to acquire the Pledged Collateral for their own account, for investment and not with a view to the distribution or resale thereof.  The Pledgor acknowledges that any such private sales may be at prices and on terms less favorable than those obtainable through a public sale (including, without limitation, a public offering made pursuant to a registration statement under the Securities Act of 1933, as amended), and the Pledgor agrees that the Collateral Agent has no 

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obligation to engage in public sales and no obligation to delay sale of any Pledged Collateral to permit the issuer thereof to register the Pledged Collateral for a form of public sale requiring registration under the Securities Act of 1933, as amended.  If the Collateral Agent determines to exercise its right to sell any or all of the Pledged Collateral, upon written request the Pledgor shall, from time to time, furnish to the Collateral Agent all such information as is necessary in order to determine the number of shares and other instruments included in the Pledged Collateral which may be sold by the Collateral Agent as exempt transactions under the Securities Act of 1933, as amended, and rules of the Securities Exchange Commission thereunder, as the same are from time to time in effect.
5.3    Purchase of Pledged Collateral.  The Collateral Agent may be a purchaser of the Pledged Collateral or any part thereof or any right or interest therein at any sale thereof, whether pursuant to foreclosure, power of sale or otherwise hereunder and the Collateral Agent may apply the purchase price to the payment of the Secured Obligations.  Any purchaser of all or any part of the Pledged Collateral shall, upon any such purchase, acquire good title to the Pledged Collateral so purchased, free of the security interests created by this Agreement.
5.4    Application of Proceeds.  The Collateral Agent shall apply any proceeds from time to time held by it and the net proceeds of any collection, recovery, receipt, appropriation, realization or sale with respect to the Pledged Collateral in accordance with Section 7.02 of the Credit Agreement.  For the avoidance of doubt, notwithstanding any other provision of any Loan Document to the contrary, no payment received from the Pledgor, if the Pledgor is not a Qualified ECP Guarantor (as defined in the Pledge and Security Agreement), shall be applied by the Administrative Agent or any other Secured Party to the payment of any Excluded Swap Obligations.
SECTION 6.      MISCELLANEOUS PROVISIONS
6.1    Notices.  Unless otherwise specifically herein provided, all notices required or permitted under the terms and provisions hereof shall be in writing and any such notice shall become effective if given in accordance with the provisions of Section 9.01 of the Credit Agreement (and, in the case of notices to the Pledgor, addressed to the Pledgor’s address as set forth in Section 3.5).
6.2    Continuing Security Interest.  This Agreement shall create a continuing security interest in the Pledged Collateral until the Termination Date.

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6.3    Reinstatement.  This Agreement shall continue to be effective or be reinstated, as the case may be, if at any time any amount received by the Collateral Agent or any other Secured Party hereunder or pursuant hereto is rescinded or must otherwise be restored or returned by the Collateral Agent or such Secured Party upon the occurrence of any proceeding, voluntary or involuntary, involving the bankruptcy, reorganization, insolvency, receivership, liquidation or other similar arrangement affecting the Pledgor, the Borrower or any Subsidiary of the Borrower or upon the appointment of any intervenor or conservator of, or trustee or similar official for, the Pledgor, the Borrower or any Subsidiary of the Borrower or any substantial part of the Pledgor’s, the Borrower’s or any Subsidiary of the Borrower’s assets, or upon the entry of an order by any court avoiding the payment of such amount, or otherwise, all as though such payments had not been made.
6.4    Independent Security.  The security provided for in this Agreement shall be in addition to and shall be independent of every other security which the Collateral Agent or the other Secured Parties may at any time hold for any of the Secured Obligations hereby secured, whether or not under the Security Documents.  The execution of any other Security Document shall not modify or supersede the security interest or any rights or obligations contained in this Agreement and shall not in any way affect, impair or invalidate the effectiveness and validity of this Agreement or any term or condition hereof.  The Pledgor hereby waives its right to plead or claim in any court that the execution of any other Security Document is a cause for extinguishing, invalidating, impairing or modifying the effectiveness and validity of this Agreement or any term or condition contained herein.  The Collateral Agent shall be at liberty to accept further security from any third party and/or release such security without notifying the Pledgor and without affecting in any way the obligations of the Pledgor under this Agreement.  The Collateral Agent shall determine if any security conferred upon the Secured Parties under the Security Documents shall be enforced by the Collateral Agent, as well as the sequence of securities to be so enforced.
6.5    Amendments.  Subject to the last sentence of Section 8.02 of the Credit Agreement, no waiver, amendment, modification or termination of any provision of this Agreement, or consent to any departure by the Pledgor therefrom, shall in any event be effective without the prior written consent of the Pledgor and either (x) the Required Lenders or (y) the Collateral Agent (acting at the direction of the Required Lenders), and none of the Pledged Collateral shall be released without the written consent of the Collateral Agent.  Any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

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6.6    Successors and Assigns.  This Agreement shall be binding upon the Pledgor and its successors, transferees and assigns and shall inure to the benefit of the Collateral Agent and the other Secured Parties and their respective successors, transferees and assigns.  The Pledgor shall not assign or otherwise transfer any of its rights or obligations under this Agreement without the written consent of the Collateral Agent (acting with the consent of the Required Lenders pursuant to the Credit Agreement), and any attempted assignment without such consent shall be null and void.
6.7    Collateral Agent.  The Collateral Agent has been appointed to act as the collateral agent hereunder by the Secured Parties.  The Collateral Agent shall be obligated, and shall have the right hereunder, to make demands, to give notices, to exercise or refrain from exercising any rights or remedies, and to take or refrain from taking any action (including, without limitation, the release or substitution of Pledged Collateral), solely in accordance with this Agreement, the Credit Agreement and the other Loan Documents.  In furtherance of the foregoing provisions of this Section 6.7, each Secured Party, by its acceptance of the benefits hereof, agrees that it shall have no right individually to realize upon any of the Pledged Collateral hereunder, it being understood and agreed by such Secured Party that all rights and remedies hereunder may be exercised solely by the Collateral Agent for the benefit of the Secured Parties in accordance with the terms of this Section 6.7  The Collateral Agent may resign or be removed in accordance with Section 8.08 of the Credit Agreement.  After the Collateral Agent’s resignation or removal thereunder as the Collateral Agent, the provisions of this Agreement shall inure to its benefit as to any actions taken or omitted to be taken by it under this Agreement while it was the Collateral Agent hereunder.  The powers conferred on the Collateral Agent hereunder are solely to protect the interests of the Secured Parties in the Collateral and shall not impose any duty upon the Collateral Agent or any other Secured Party to exercise any such powers.  The Collateral Agent and the other Secured Parties shall be accountable only for amounts that they actually receive as a result of the exercise of such powers, and neither they nor any of their officers, directors, employees or agents shall be responsible to the Pledgor for any act or failure to act hereunder.
6.8    Survival.  All agreements, statements, representations and warranties made by the Pledgor herein or in any certificate or other instrument delivered by the Pledgor or on its behalf under this Agreement shall be considered to have been relied upon by the Collateral Agent and the other Secured Parties and shall survive the execution and delivery of this Agreement until the Termination Date regardless of any investigation made by the Collateral Agent or the other Secured Parties or made on their behalf.

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6.9    Transfer of Loans.  Without limiting the generality of Section 6.2, but subject to the terms of the Credit Agreement and any other Loan Document, any Lender may assign or otherwise transfer any Loans held by it to any other Person, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to the Lenders herein or otherwise.  Upon the Termination Date, the security interest granted hereby shall terminate hereunder and of record and all rights to the Pledged Collateral shall revert to the Pledgor.  Upon any such termination, the Collateral Agent shall, at the Pledgor’s expense, execute and deliver to the Pledgor (without recourse and without any representation or warranty) such documents as the Pledgor shall reasonably request to evidence such termination and shall use commercially reasonable efforts to return to the Pledgor (without recourse and without any representation or warranty) any Pledged Collateral previously delivered to the Collateral Agent (or to the extent necessary, execute a lost affidavit in form and substance reasonably satisfactory to the Pledgor).
6.10    No Waiver; Remedies Cumulative.  No failure or delay on the part of the Collateral Agent in exercising any right, power or privilege hereunder and no course of dealing between any of the parties hereto shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder or thereunder.  The rights and remedies herein expressly provided are cumulative and not exclusive of any rights or remedies which the Collateral Agent would otherwise have.
6.11    Counterparts.  This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall be deemed an original but all of which when taken together shall constitute a single contract.  Delivery of an executed signature page to this Agreement by facsimile transmission, “pdf” or similar electronic copy shall be as effective as delivery of a manually signed counterpart of this Agreement.  Any party hereto may request an original counterpart of any party delivering such electronic counterpart.  A set of the copies of this Agreement signed by all the parties shall be lodged with the Borrower and the Administrative Agent.
6.12    Headings Descriptive.  The headings of the several sections and subsections of this Agreement are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Agreement.
6.13    Severability.  In case any provision contained in or obligation under this Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

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6.14    Governing Law.  THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO CONFLICT OF LAWS PROVISIONS THAT WOULD RESULT IN THE APPLICATION OF LAWS OTHER THAN THE LAWS OF THE STATE OF NEW YORK (OTHER THAN ANY MANDATORY PROVISIONS OF THE UCC RELATING TO THE LAW GOVERNING PERFECTION AND THE EFFECT OF PERFECTION OF THE SECURITY INTERESTS GRANTED THEREUNDER)).
6.15    Consent to Jurisdiction. 
(a)    The Pledgor hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of any New York State court or Federal court of the United States of America sitting in New York City, Borough of Manhattan, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, and the Pledgor hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding shall be heard and determined in such New York State court or, to the extent permitted by law, in such Federal court.  The Pledgor agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Agreement, however, shall affect any right that any Secured Party may otherwise have to bring any action or proceeding relating to this Agreement against the Pledgor or its properties in the courts of any jurisdiction.
(b)    The Pledgor hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, in any New York State court or Federal court of the United States of America sitting in New York City.  The Pledgor hereby irrevocably and unconditionally waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.
(c)    The Pledgor  irrevocably consents to service of process in the manner provided for notices in Section 6.1.  Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law.
(d)    The Pledgor  shall maintain an agent to receive service of process in New York, New York at all times until the Termination Date.

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6.16    Waiver of Jury Trial.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT, THE SECURED PARTIES AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 6.16.
6.17    Entire Agreement.  This Agreement, together with any other agreement executed in connection herewith (including the Credit Agreement and the other Loan Documents), is intended by the parties as a final expression of their agreement as to the matters covered hereby and is intended as a complete and exclusive statement of the terms and conditions thereof. Accordingly, this Agreement may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties.  There are no unwritten or oral agreements between the parties.
6.18    Independent Obligations.  The Pledgor’s obligations under this Agreement are independent of those of the Borrower.  Subject to Section 2.1(c), the Collateral Agent may bring a separate action against the Pledgor without first proceeding against the Borrower or any other Person or any other security held by the Collateral Agent and without pursuing any other remedy.
6.19    Waiver of Defenses.
(a)    Subject to Section 2.1(c), to the maximum extent permitted by applicable law, the Pledgor hereby waives: (i) any defense of a statute of limitations; (ii) any defense based on the legal disability of any Person or any discharge or limitation of the liability of any Person to the Collateral Agent or the Secured Parties, whether consensual or arising by operation of law; (iii) presentment, demand, protest and notice of any kind (other than as expressly provided by the Loan Documents); and (iv) any defense based upon or arising out of any defense which any Person may have to the payment or performance of any part of the Secured Obligations (other than the defense of payment). 
(b)    Subject to Section 2.1(c), the Pledgor hereby waives, to the maximum extent permitted by applicable law, (i) all rights under any law to require the Collateral Agent to pursue the Borrower or any other Person (including the Pledgor under any other obligation of the Pledgor), any security which the Collateral Agent may hold, or any other remedy before proceeding against the Pledgor; (ii) all rights of reimbursement or subrogation, all rights to enforce any remedy that the Collateral Agent or the Secured Parties may have against any Person, and all rights to participate 

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in any security held by the Collateral Agent, in each case until the Termination Date; (iii) all rights to require the Collateral Agent to give any notices of any kind, including, without limitation, notices of acceptance, nonpayment, nonperformance, protest, dishonor, default, delinquency or acceleration, or to make any presentments, demands or protests, except as set forth herein or expressly provided in the Credit Agreement or any of the Loan Documents; (iv) all rights to assert the bankruptcy or insolvency of any Person as a defense hereunder or as the basis for rescission hereof; (v)  all rights under any law purporting to reduce the Pledgor’s obligations hereunder if the Secured Obligations are reduced other than as a result of payment in Cash of such Secured Obligations including, without limitation, any reduction based upon any Secured Party’s error or omission in the administration of the Secured Obligations; (vi) all defenses based on the incapacity, disability or lack of authority of the Borrower or any other Person, the repudiation of the Loan Documents, the Specified Hedging Agreements or the Specified Cash Management Agreements by the Borrower or any Person, the failure by the Collateral Agent or the Secured Parties to enforce any claim against any Person, or the unenforceability in whole or in part of any Loan Documents, the Specified Hedging Agreements or the Specified Cash Management Agreements; (vii) all suretyship and guarantor’s defenses generally including, without limitation, defenses based upon collateral impairment or any statute or rule of law providing that the obligation of a surety or guarantor must not exceed or be more burdensome than that of the principal; (viii) all rights to insist upon, plead or in any manner whatever claim or take the benefit or advantage of, any appraisal, valuation, stay, extension, marshaling of assets, redemption or similar law, or exemption, whether now or at any time hereafter in force, which may delay, prevent or otherwise affect the performance by the Pledgor of its obligations under, or the enforcement by the Collateral Agent of, this Agreement; (ix) any requirement on the part of the Collateral Agent or the holder of any obligations under the Loan Documents, the Specified Hedging Agreements or the Specified Cash Management Agreements to mitigate the damages resulting from any default; and (x) except as otherwise specifically set forth herein or as required by applicable law, all rights of notice and hearing of any kind prior to the exercise of rights by the Collateral Agent upon the occurrence and during the continuation of an Event of Default to repossess with judicial process or to replevy, attach or levy upon the Pledged Collateral.  To the extent permitted by law, the Pledgor waives the posting of any bond otherwise required of the Collateral Agent in connection with any judicial process or proceeding to obtain possession of, replevy, attach, or levy upon the Pledged Collateral, to enforce any judgment or other security for the Secured Obligations, to enforce any judgment or other court order entered in favor of the Collateral Agent, or to enforce by specific performance, temporary restraining order, preliminary or permanent injunction, this Agreement or any other agreement or document between the Pledgor, the Collateral Agent and the Secured Parties.  The Pledgor further agrees that upon the occurrence and during the continuation of an Event of Default, the Collateral Agent may elect to nonjudicially or judicially foreclose against any real or personal property security it holds for the Secured Obligations or any part thereof, or to exercise any other remedy against any Person, any security or any guarantor, even if the effect of that action is to deprive the Pledgor of 

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the right to collect reimbursement from any Person for any sums paid by the Pledgor to the Collateral Agent or any Secured Party.
(c)    If the Collateral Agent may, under applicable law, proceed to realize its benefits under any of the Loan Documents giving the Collateral Agent a Lien upon any Collateral, whether owned by the Borrower or by any other Person, either by judicial foreclosure or by non-judicial sale or enforcement, the Collateral Agent may, at its sole option, determine which of its remedies or rights it may pursue without affecting any of the rights and remedies of the Collateral Agent under this Agreement.  If, in the exercise of any of such rights and remedies, the Collateral Agent shall forfeit any of its rights or remedies, including any right to enter a deficiency judgment against the Borrower or any other Person, whether because of any applicable laws pertaining to “election of remedies” or the like, to the extent permitted by applicable law, the Pledgor hereby consents to such action by the Collateral Agent and waives any claim based upon such action, even if such action by the Collateral Agent shall result in a full or partial loss of any rights of subrogation, indemnification or reimbursement which the Pledgor might otherwise have had but for such action by the Collateral Agent or the terms herein.  Any election of remedies which results in the denial or impairment of the right of the Collateral Agent to seek a deficiency judgment against any of the parties to any of the Loan Documents shall not, to the extent permitted by applicable law, impair the Pledgor’s obligation hereunder.  In the event the Collateral Agent shall bid at any foreclosure or trustee’s sale or at any private sale permitted by law or the Loan Documents, the Collateral Agent may bid all or less than the amount of the Secured Obligations.  
(d)       To the extent permitted by applicable law, the Pledgor shall not assert and hereby waives any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, the Credit Agreement or any agreement or instrument contemplated hereby or thereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof.

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6.20    Subrogation, Etc.  Notwithstanding any payment or payments made by the Pledgor or the exercise by the Collateral Agent of any of the remedies provided under this Agreement or any other Loan Document, until the Secured Obligations have been paid in full, the Pledgor shall have no claim (as defined in 11 U.S.C. § 101(5)) of subrogation to any of the rights of the Collateral Agent against any Person, the Pledged Collateral or any guaranty held by the Collateral Agent for the satisfaction of any of the Secured Obligations, nor shall the Pledgor have any claims (as defined in 11 U.S.C. § 101(5)) for reimbursement, indemnity, exoneration or contribution from any such Person in respect of payments made by the Pledgor hereunder.  Notwithstanding the foregoing, if any amount shall be paid to the Pledgor on account of such subrogation, reimbursement, indemnity, exoneration or contribution rights at any time before the Secured Obligations have been paid in full, such amount shall be held by the Pledgor in trust for the Collateral Agent segregated from other funds of the Pledgor, and shall be turned over to the Collateral Agent in the exact form received by the Pledgor (duly endorsed by the Pledgor to the Collateral Agent if required) to be applied against the Secured Obligations in such amounts and in such order as the Collateral Agent may elect, or as directed by the Administrative Agent.
6.21    Collateral Agent.  The rights, powers, benefits, privileges, immunities and indemnities given to the Collateral Agent and set forth in the Credit Agreement are expressly incorporated herein by reference thereto and, subject to Section 6.22, shall survive the termination of this Agreement and the resignation or removal of the Collateral Agent.
6.22    Regulatory Matters.  Notwithstanding anything to the contrary set forth in this Agreement or any other Loan Document, the Collateral Agent, on behalf of the Secured Parties, acknowledges and agrees that its rights, remedies and powers under this Agreement (including its exercise of remedial rights upon collateral and voting of equity interests in (or otherwise taking control of) Persons licensed by the Gaming Authorities and/or under Gaming Laws), may be exercised only to the extent that (i) the exercise thereof does not violate any applicable laws, rules and regulations of the Gaming Authorities, including Gaming Laws, and (ii) all necessary approvals, licenses and consents from the Gaming Authorities required in connection therewith are obtained.  Notwithstanding any other provision of this Agreement, the Pledgor expressly authorizes the Collateral Agent and the other Secured Parties to cooperate with the applicable Gaming Authorities in connection with the administration of their regulatory jurisdiction over the Pledgor and the Borrower, including, without limitation, to the extent not inconsistent with the internal policies of such Collateral Agent or Secured Party and any applicable legal or regulatory restrictions, the provision of such documents or other information as may be requested by any such Gaming Authorities relating to the Collateral Agent, the Pledgor or the Borrower, or the Loan Documents.  The parties acknowledge that the provisions of this Section 6.22 shall not be for the benefit of the Pledgor, the Borrower or any other Person.

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6.23    Intercreditor Agreement.  All rights and remedies of the Collateral Agent hereunder are, as between the Administrative Agents (as defined in the Intercreditor Agreement) and the Collateral Agents (as defined in the Intercreditor Agreement), subject to the terms of the Intercreditor Agreement. This provision is for the benefit of, and may be enforced exclusively by, the Administrative Agents and the Collateral Agents only. For the avoidance of doubt, this, provision is not for the benefit of the Pledgor and may not, under any circumstances, be enforced by the Pledgor.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by their officers thereunto duly authorized as of the date first above written.
                            	
		
	MONTREIGN HOLDING COMPANY, LLC,
a New York limited liability company

	By:
	/s/ Joseph A. D’Amato

	Name:
	Joseph A. D’Amato

	Title: 
	President

 

 

                        	
		
	CREDIT SUISSE AG, 
CAYMAN ISLANDS BRANCH,  
as Collateral Agent

	By:
	/s/ Robert Hetu

	Name:
	Robert Hetu

	Title: 
	Authorized Signatory

                        	
		
	By:
	/s/  Whitney Gaston

	Name:
	Whitney Gaston

	Title: 
	Authorized Signatory

 

                             ACKNOWLEDGED AND AGREED:

	
		
	MONTREIGN OPERATING COMPANY, LLC,
a New York limited liability company

	By:
	/s/ Joseph A. D’Amato

	Name:
	Joseph A. D’Amato

	Title: 
	President

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