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EXHIBIT 10.1    
  

 
  FIRST AMENDMENT TO
  SECURITY AGREEMENT    
  

        THIS
FIRST AMENDMENT TO SECURITY AGREEMENT ("First Amendment"), among Herbst Gaming, Inc., a Nevada corporation (the "Company") and each of its subsidiaries listed on  Schedule A attached
hereto (collectively, the "Subsidiaries"), and The Bank of New York, a New York banking corporation (the "Secured Party"),
dated as of August 23, 2002 for itself and the holders of the Notes under the Indenture (the "Holders"). The Company and each of the Subsidiaries are individually referred to herein as "Debtor"
and collectively, the "Debtors"). 

R E C I T A L S  

        A.    Each
Debtor is a party to that certain Indenture, dated as of August 24, 2001 (the "Indenture," among the Trustee, the Company, the Subsidiaries, each as a
guarantor, under which the Company issued $170,000,000 principal amount of its 103/4% Senior Secured Notes due 2008 (the "Notes"). 

        B.    In
connection with the issuance of the Notes, the Company and the Subsidiaries entered into, among other documents, a Security Agreement dated as of August 24,
2001 (the "Security Agreement"). 

        C.    The
Company, and the Subsidiaries have executed and delivered the First Supplemental Indenture dated as of August 23, 2002 ("Supplemental Indenture"), for the
purposes of amending certain terms and provisions of the Security Agreement and other Collateral Documents, (defined in the Indenture)
to clarify and correct certain collateral descriptions contained in the Security Agreement and other Collateral Documents. 

        D.    The
parties hereto desire to execute and deliver this First Amendment in order to clarify and correct the collateral descriptions contained in the Security Agreement. 

        NOW,
THEREFORE, pursuant to the foregoing, the Company, the Subsidiaries and the Secured Party hereby agree as follows. 

1.    AMENDMENTS  

        1.1.  The
definition of FF&E Collateral or FF&E contained in
Section 1.01 shall be amended to read as follows: 

        FF&E Collateral or FF&E means all of Debtors' furniture, fixtures and equipment as
generally described on Part 1 of Schedule B attached hereto and more specifically described on Part 2 of  Schedule A
attached hereto (as may be supplemented, amended or modified from time to time), whether now or hereafter deemed to be (i) a
movable piece of personal property, or (ii) affixed to the immovable (real) property such that it may be deemed a component part of the immovable (real) property, in each case, under applicable
Nevada or federal law, or otherwise, and, in each such case, together with all substitutions therefore, replacements thereof and additions thereto, and all proceeds of and from any and all of the
foregoing, excluding, however all items of furniture, fixtures and equipment from time to time located in or affixed to, or used in the Terrible's
Hotel & Casino in Las Vegas, Nevada. 

        1.2.  Section 2.01
(i) shall be deleted and replaced in its entirety with "Intentionally omitted." 

        1.3.  The
following shall be added to the last paragraph of Section 2.01: 

        Notwithstanding
the foregoing provisions of this Section 2.01, such grant of the security interest shall not extend to, and the term "Collateral" shall not include any items of
furniture, fixture or 

 

equipment from time to time located in or affixed to, or used in the Terrible's Hotel & Casino, in Las Vegas, Nevada. 

2.    EFFECT OF AMENDMENTS  

        2.1.  Other
than as set forth in Section 1, this First Amendment in no way acts as a release or relinquishment of, and in no way affects the security interests and
rights created by or arising under the Security Agreement; and the Company, the Subsidiaries and Secured Party jointly affirm, reaffirm and agree that the Security Agreement secures the full
performance of each and every obligation secured by the Security Agreement, and continues to be effective as, and to constitute, a lien and charge on the Property to the full extent of all obligations
secured thereby (other than as set forth in Section 1). 

        2.2.  This
First Amendment shall not prejudice any present or future rights, remedies, benefits or powers belonging or accruing to Secured Party or Trustee under the terms of
the Security Agreement, and without limitation of the foregoing, Secured Party reserves all rights which it has against the Company or the Subsidiaries. 

        2.3.  In
the event of any conflict between the terms of the Security Agreement and the provisions of this First Amendment, the terms of this First Amendment shall control.
This First Amendment shall be deemed to form a part of the Security Agreement, and except as specifically amended herein, the terms of the Security Agreement shall remain unaffected and
unchanged by reason of the amendments described herein. 

        2.4.  The
execution and/or acceptance of this First Amendment by Secured Party shall not be deemed or construed as (i) a novation or an accord or satisfaction of any
of the Company's or the Subsidiaries' duties, obligations and liabilities contained in the Indenture or the Collateral Documents; (ii) a waiver, modification, restriction or limitation of any
and all of Secured Party's rights and benefits arising under the Indenture or the Collateral Documents by operation or law, or otherwise, to demand full, complete and strict performance of the duties,
obligations and liabilities contained in the Indenture or the Collateral Documents, as amended; or (iii) a precedent, and that Secured Party shall be under no
obligation, express or implied, to grant the Company any future or further modifications and/or amendments to any or all of the Indenture or Collateral Documents. 

3.    HEIRS, SUCCESSORS AND ASSIGNS  

        All covenants and agreements contained in this First Amendment, by or on behalf of the Company and the Subsidiaries or Secured Party shall bind and inure to the
benefit of their respective heirs, successors and assigns, whether so expressed or not. 

4.    HEADINGS  

        The headings of the articles, sections, paragraphs and subdivisions of this First Amendment are for convenience of reference only, are not to be considered a part
hereof, and shall not limit or expand or otherwise affect any of the terms hereof. 

5.    GOVERNING LAW  

        This First Amendment is made by the Company and the Subsidiaries and accepted by Secured Party in the State of New York, under the laws of such state and shall be
construed, interpreted, enforced and governed by and in accordance with the laws of such state. 

2

 

6.    CONTEXT  

        In this First Amendment, whenever the context so requires, the neuter includes the masculine and feminine, and the singular includes the plural, and vice versa. 

7.    INTERPRETATION  

        As used in this First Amendment, unless the context clearly required otherwise: The Terms "herein" or "hereunder" and similar terms without reference to a
particular shall refer to the entire First
Amendment and not just to the paragraph in which such terms appear; the term "lien" shall also mean a security interest, and the term "security interest" shall also mean a lien. 

        IN
WITNESS WHEREOF, the Company, the Subsidiaries and Secured Party have executed this First Amendment to Security Agreement as of the day and year first above written. 

	 	 	HERBST GAMING, INC.,

a Nevada corporation
	

 	
 	

By:	

/s/  EDWARD HERBST      
 Name:  Edward Herbst

Title:    President
	 	 	 	 
	 	 	 	 
	 	 	THE BANK OF NEW YORK,

as Trustee
	

 	
 	

By:	

/s/  STACEY B. POINDEXTER      
 Name:  Stacey B. Poindexter

Title:    Assistant Treasurer
	 	 	 	 
	 	 	 	 
	 	 	E-T-T, INC.

a Nevada corporation
	

 	
 	

By:	

/s/  EDWARD HERBST      
 Name:  Edward Herbst

Title:    President
	 	 	 	 
	 	 	 	 
	 	 	FLAMINGO PARADISE GAMING, LLC

a Nevada limited liability company
	

 	
 	

By:	

/s/  EDWARD HERBST      
 Name:  Edward Herbst

Title:    President
	 	 	 	 
	 	 	 	 

3

 

	 	 	MARKET GAMING, INC.

a Nevada corporation
	

 	
 	

By:	

/s/  EDWARD HERBST      
 Name:  Edward Herbst

Title:    President
	 	 	 	 
	 	 	 	 
	 	 	E-T-T ENTERPRISES, L.L.C.

a Nevada limited liability company
	

 	
 	

By:	

/s/  EDWARD HERBST      
 Name:  Edward Herbst

Title:    President
	 	 	 	 
	 	 	 	 
	 	 	CARDIVAN COMPANY

a Nevada corporation
	

 	
 	

By:	

/s/  EDWARD HERBST      
 Name:  Edward Herbst

Title:    President
	 	 	 	 
	 	 	 	 
	 	 	CORRAL COIN, INC.

a Nevada corporation
	

 	
 	

By:	

/s/  EDWARD HERBST      
 Name:  Edward Herbst

Title:    President
	 	 	 	 
	 	 	 	 
	 	 	CORRAL COUNTRY COIN, INC.

a Nevada corporation
	

 	
 	

By:	

/s/  EDWARD HERBST      
 Name:  Edward Herbst

Title:    President

4

 
SCHEDULE A
  List of Subsidiaries

	1.
	E-T-T, Inc.

	2.
	Flamingo
Paradise Gaming, LLC

	3.
	Market
Gaming, Inc.

	4.
	E-T-T
Enterprises, LLC

	5.
	Cardivan, Inc.

	6.
	Corral
Coin, Inc.

	7.
	Corral
Country Coin, Inc. 

5

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EXHIBIT 10.1

FIRST AMENDMENT TO SECURITY AGREEMENTQuickLinks
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EXHIBIT 10.2    
  

When
Recorded Mail to: 

John
N. Brewer

Kummer Kaempfer Bonner & Renshaw

3800 Howard Hughes Parkway

Seventh Floor

Las Vegas, Nevada 89109 

APN
162-22-104-001 

 
 

FIRST AMENDMENT TO
  DEED OF TRUST    
  

        THIS FIRST AMENDMENT TO DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURES FILING ("First Amendment"), among Flamingo Paradise Gaming,
LLC, a Nevada limited liability company, as trustor ("FPG" or "Trustor"), and The Bank of New York, a national banking association, as beneficiary ("Beneficiary"), dated as of August 23, 2002
is made with reference to the following facts and purposes: 

RECITALS  

        A.    FPG
executed and delivered to National Title Company, a Nevada corporation, as trustee ("Trustee"), for the benefit of Beneficiary, a Deed of Trust with Assignment of
Rents and Fixture Filing dated August 24, 2001 ("Deed of Trust"), affecting the real property described in Exhibit "A" attached hereto and incorporated herein by reference (the "Land"). The
Deed of Trust was recorded
on August 24, 2001, in Book 20010824, as Instrument No. 01135, in the Clark County, Nevada Recorder's Office. 

        B.    The
Deed of Trust secures the obligations of FPG under that certain Indenture dated as of August 24, 2001 ("Indenture"). 

        C.    FPG,
along with Herbst Gaming, Inc., a Nevada corporation ("Herbst Gaming") and other subsidiaries of Herbst Gaming and the Beneficiary have executed and delivered
the First Supplemental Indenture dated as of August 23, 2002 ("Supplemental Indenture"), for the purposes of amending certain terms and provisions of the Deed of Trust and other Collateral
Documents, (defined in the Indenture) to clarify and correct certain collateral descriptions contained in the Deed of Trust and other Collateral Documents. 

        D.    The
parties hereto desire to execute, deliver and record this First Amendment in order to clarify and correct the collateral description contained in the Deed of Trust. 

        NOW,
THEREFORE, pursuant to the foregoing FPG and Beneficiary hereby agree as follows. 

1.    AMENDMENTS  

        The following shall be added to the last paragraph of Section 2.01: 

        1.1.  Notwithstanding
the foregoing provisions of this Section 2.01, such grant of security interest shall not extend to and as the term "Collateral" shall not include
any items of furniture, fixture or equipment from time to time located in or affixed to, or used in the Terrible's Hotel & Casino, in Las Vegas, Nevada. 

2.    EFFECT OF AMENDMENTS  

        2.1.  Other
than as set forth in Section 1, this First Amendment in no way acts as a release or relinquishment of, and in no way affects the liens, security interests
and rights created by or arising under the Deed of Trust, or the priority thereof; and FPG and Beneficiary jointly affirm, reaffirm and agree that the Deed of Trust secures the full performance of
each and every obligation secured by the Deed of Trust, and continues to be effective as, and to constitute, a lien and charge on the Property to the full extent of all obligations secured thereby
(other than as set forth in Section 1). 

        2.2.  This
First Amendment shall not prejudice any present or future rights, remedies, benefits or powers belonging or accruing to Beneficiary or Trustee under the terms of
the Deed of Trust, and 

 

without limitation of the foregoing, Beneficiary reserves all rights which it has against Herbst Gaming or any guarantor, including, but not limited to, FPG. 

        2.3.  In
the event of any conflict between the terms of the Deed of Trust and the provisions of this First Amendment, the terms of this First Amendment shall control. This
First Amendment shall be deemed to form a part of the Deed of Trust, and except as specifically amended herein, the terms of the Deed of Trust shall remain unaffected and unchanged by reason of
the amendments described herein. 

        2.4.  The
execution and/or acceptance of this First Amendment by Beneficiary shall not be deemed or construed as (i) a novation or an accord or satisfaction of any of
Herbst Gaming's duties, obligations and liabilities contained in the Indenture or the Collateral Documents; (ii) a waiver, modification, restriction or limitation of any and all of
Beneficiary's rights and benefits arising under the Indenture or the Collateral Documents by operation or law, or otherwise, to demand full, complete and strict performance of the duties, obligations
and liabilities contained in the Indenture or the Collateral Documents, as amended; or (iii) a precedent, and that Beneficiary shall be under no obligation, express or implied, to grant FPG any
future or further modifications and/or amendments to any or all of the Indenture or Collateral Documents. 

3.    HEIRS, SUCCESSORS AND ASSIGNS  

        All covenants and agreements contained in this First Amendment, by or on behalf of FPG or Beneficiary shall bind and inure to the benefit of their respective
heirs, successors and assigns, whether so expressed or not. 

4.    HEADINGS  

        The headings of the articles, sections, paragraphs and subdivisions of this First Amendment are for convenience of reference only, are not to be considered a part
hereof, and shall not limit or expand or otherwise affect any of the terms hereof. 

5.    GOVERNING LAW  

        This First Amendment is made by FPG and accepted by Beneficiary in the State of Nevada, under the laws of such state and shall be construed, interpreted, enforced
and governed by and in accordance with the laws of such state. 

6.    CONTEXT  

        In this First Amendment, whenever the context so requires, the neuter includes the masculine and feminine, and the singular includes the plural, and vice versa. 

7.    INTERPRETATION  

        As used in this First Amendment, unless the context clearly required otherwise: The Terms "herein" or "hereunder" and similar terms without reference to a
particular shall refer to the entire First Amendment and not just to the paragraph in which such terms appear; the term "lien" shall also mean a security interest, and the term "security interest"
shall also mean a lien. 

2

 

        IN
WITNESS WHEREOF, SFH and Beneficiary have executed this First Amendment to Deed of Trust as of the day and year first above written. 

	 	 	"TRUSTOR"
	

 	
 	

 	

 
	 	 	FLAMINGO PARADISE GAMING, LLC, a Nevada limited liability company
	

 	
 	

 	

 
	 	 	By:	/s/  EDWARD J. HERBST      
 Manager
	

 	
 	

 	

 
	 	 	"BENEFICIARY"
	

 	
 	

 	

 
	 	 	THE BANK OF NEW YORK, a New York Banking corporation
	

 	
 	

 	

 
	 	 	By:	/s/  STACEY B. POINDEXTER      

	 	 	Its:	Assistant Treasurer
	 	 	 	 

3

 

	STATE OF NEVADA                )

COUNTY OF CLARK                )	 	ss.

        This
instrument was acknowledged before me on July 17, 2002 by Edward Herbst, as Manager of Flamingo Paradise Gaming, LLC, a Nevada limited liability company. 

	 	 	/s/  DEBRA G. MARTIN      
 Notary Public
	

 	
 	

 

	STATE OF NEW YORK            )

COUNTY OF NEW YORK        )	 	ss.

        This
instrument was acknowledged before me on August 23, 2002 by Stacey Poindexter, as Assistant Treasurer of The Bank of New York, a New York banking corporation. 

	 	 	/s/  IRENE SIEGEL      
 Notary Public

4

 
EXHIBIT A  

LEGAL DESCRIPTION OF REAL PROPERTY  

The
land referred to herein is situated in the State of Nevada, County of Clark and is described as follows: 

That
portion of the Northwest Quarter (NW1/4) of the Northwest Quarter (NW1/4) of Section 22, Township 21 South, Range 61 East, M.D. B. & M., described as follows: 

Parcel
I, as shown by Parcel Map in File 26 of Parcel Maps, page 26, in the Office of the County Recorder of Clark County, Nevada. 

Subject
to a right of way and easement for the benefit of the fee owner of Parcel 2, as shown by Parcel Map in File 26, page 26, recorded May 30, 1979 as Document No. 1022111 of
Official Records, Clark County, Nevada, over and across the following described premises: 

A
strip of land being 25.00 feet in width, 12.50 feet on each side of the following described centerline: 

That
portion of the Northwest Quarter (NW1/4) of the Northwest Quarter (NW1/4) of Section 22, Township 21 South, Range 61 East, M.D.B. & M., Clark County, Nevada, as described as
follows: 

Commencing
at the Northwest corner of said Section 22; 

THENCE
South 88o 55' 56" East along the North line thereof, a distance of 1,030.21 feet; 

THENCE
South 00o 44' 11" East, a distance of 92.64 feet to a point in the present Southerly right of way line of Flamingo Road, being the TRUE POINT OF BEGINNING; 

THENCE
South 00o 44' 11" East, a distance of 576.22 feet to the TRUE POINT OF ENDING. 

5

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EXHIBIT 10.2

FIRST AMENDMENT TO DEED OF TRUST

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